More Government Intervention Needed Says FCC Chairman

 

 

The Consumer Electronics Show (“CES”) was held last week in Las Vegas. So the tech industry showed up with all its gadgets, smartphones and tablets and whatnot, and all the promises of 4G and mobile computing. So we’ve got this new, relatively speaking, and burgeoning wireless industry. Isn’t this what economists and critics and politicians and enthusiasts predicted and clamored for, American inventiveness and exceptional-ism to come to the rescue and reverse the global economic downslide. Not so fast my friends. As Kenneth Corbin reports in his article for Datamation entitled FCC Boss Takes Spectrum Shortfall Warning to CES, The FCC Chairman, Julius Genachowski, announced plans at the CES for his agency to intervene into the wireless industry and forcibly reallocate bandwidth among the major players.   Corbin explains the situation succinctly in his article:

“Federal Communications Commission Chairman Julius Genachowski was talking about spectrum, the invisible airwaves that power the wireless networks that are coming under increasing strain from the surge in mobile computing.”

It comes as no surprise to the industry that the possibilities and wonders of the new wave in mobile computing are dependent upon sufficient supply and access to the air waves. However, as Corbin reports, The FCC has plans to conduct auctions of the air waves licenses currently owned by the TV broadcasters to the wireless vendors. Maybe not a bad idea, but along with incentives to do so, the FCC would impose fees, fines, and penalties in order to ensure the government’s idea of the proper allocation of the Spectrum to be implemented.  So is this truly voluntary.

Once again, the age old question must be addressed …. Who is better equipped and suited to put into practice and maintain a sound business strategy, the Free Market or the Government. You decide.

 

3 Reports re: Cloud Computing & SaaS

 

In my research of items concerning the latest in the software industry, I came across three short articles of interest. I’ll give you a brief synopsis of each and a link to the article if you wish to explore further.  I’ve added a bonus “Quote of the Week” at the end. Sorry but I just couldn’t resist.

1.       Gartner Reports on the Surge in SaaS

Larry Barrett’s article on Gartner’s SaaS Market Report entitled SaaS Market Growing by Leaps and Bounds: Gartner states the latest report from Gartner shows no indication on any slowing in the demand for on-demand software applications. Gartner defines “SaaS as software that is owned, delivered and managed remotely by one or more providers”. Gartner expects 2010 SaaS sales to top $8.5 billion, an increase of over 14% of 2009 sales.

Advantages to SaaS:

·         Lower start-up costs compared to on premises deployments

·         Lower maintenance costs compared to on premises deployments

·         Ease in sharing applications and documents through the cloud

Gartner analyst Sharon Mertz stated, "As tighter capital budgets demand leaner alternatives, familiarity with the model increases, and interest in platform as a service and cloud computing grows.”  Further Mertz noted, "Greater market competition and increased focus by the mega-vendors reinforces the legitimacy of on-demand, mitigating initial objections about security and availability for many, as acceptance of SaaS as a viable model for enterprise computing services grows."

2.       Microsoft Claims Top Spot in Cloud Computing

Stuart J. Johnston’s article on Microsoft’s claim to be #1 in Cloud Computing entitled Microsoft: We’re No. 1 in the Cloud reports that Kevin Turner, Microsoft COO, proclaimed at their annual meeting for financial analysts in Redmond, Washington that Microsoft is “number one” in cloud computing. The company claims 40 million cloud computing users globally and Turner reported that "Seventy percent of the wins in the cloud that we had in [the fourth quarter of fiscal 2010]… were new Microsoft customers." He touted three of their new customers:

·         Dow Chemical Co.

·         Hyatt Hotels & Resorts

·         University of Georgia

Additionally, Turner made sure that his audience was aware of the company’s record year due in large part to a total of over 175 million licenses sold for their new Windows 7 operating system in the short nine months since its release.

3.       Public Cloud Storage Services the New Choice for Enterprises

David Needle has a new article on Public Cloud Storage entitled New Public Cloud Storage Services Target IT. In it he discusses the latest report from research firm Ovum regarding public cloud storage services. Ovum senior analyst Timothy Stammers stated:

"Not only do they relieve the burden of storing data on customers' premises, but they also have the multiplying effect of transferring to the cloud provider the responsibility of backing up that data"

Initially companies poured vast sums of cash into online storage services to no avail. Economies of scale could not be reached due to the fact that the vendors were using the same storage systems of the enterprises they wished to sell. Huge network bandwidth costs along with their customer’s refusal to accept to the unknown contributed to the collapse of this new emerging venture.

The solution and/or opportunity was as follows:

·         Slowing economy put CIO’s on the hunt for cost cutting measures

·         Cost of network bandwidth plunges

·         The unknown becomes known due to success of certain vendors, most notably Amazon and Salesforce

·         New object-oriented storage technology, i.e. much more bang for the buck

New start-ups offering these services include Nirvanix, Nasumi, and Ctera. Stammers revealed that these vendors often leverage the storage clouds from such mega-providers as Amazon, Microsoft, and RackSpace. He stated,

“To the customer it still looks like ordinary storage and there's caching to alleviate latency issues. Typically these systems also provide their own backup, but companies may also choose to do that on their own for an extra level of protection.”

4.       Quote of the Week

And finally, I just couldn’t resist this one. To paraphrase a line from a well-known cable news network, I’ll Report, You Decide. Here is my pick from David Needle’s article entitled Say What? The Week’s Top Five IT Quotes:

"First of all, moving to the cloud is not the right way to think about anything. There will be new things in the cloud -- redoing something doesn't make a lot of sense. If you want to argue we've been somewhat slow in expanding to the cloud -- fair enough -- but customers have a lot of interest in seeing that our applications maintain their core value, the data integrity and consistency. Taking that to the cloud takes a lot of work."

Kaj Van de Loo, an executive in the office of the CTO at SAP, defending his company's cloud computing strategy.

That is One Small Step for Bandwidth. One Giant Leap for ISP's.

 

Actually it is not that small of a step for bandwidth. NASA has come up with a device that transmits data at the rate of 100 megabytes per second. This compares to the 1 to 3 megabytes per second from a typical high-speed internet service provider. 

I have got to hand it to Sean Michael Kerner for posting his article in Internetnews.com entitled From the Moon to the Earth at 100 Mbps. I was simply minding my own business, surfing the net for anything of interest, when I stumbled upon Kerner’s article. So my first thought was, ‘So NASA has come up with yet another innovation in order to justify its existence.’ I recalled the ever popular “Tang” and then there was Velcro, digital watches, and the ubiquitous handheld calculators. To be fair most, if not all, of the modern conveniences we enjoy today and cannot live without began or in some way had their impetus in the space program. And so I read on. This one will truly be revolutionary.

Kerner’s article linked to Jan Wittry’s article entitled The Ultimate Long Distance Communication. Wittry reports that NASA has launched the Lunar Reconnaissance Orbiter (“LRO”) to collect data about the moon to include massive amounts of images, and data about the moon’s geography, climate, and environment. This information will then be sent back to earth to help scientists create high-resolution 3-D maps of the moon’s surface. The transmission of this massive amount of data, in almost real time, is due to a NASA custom designed and handmade 13 inch device called a Traveling Wave Tube Amplifier.

I strongly suggest you read Wittry’s article and discover the various uses already contemplated for such technology (i.e. use in communication satellites for tracking oceanic flights, icebergs, volcanic eruptions, forest fires, and severe weather.) Kerner mentions the most obvious use in his article when he mentions the ability to “boost data delivery” for content delivery on the internet.