The hesitation of software enterprises, whether the whole "cloud"?

Cloud is a software development direction, but for software companies, this means a huge challenge, in the past they can easily and stably access to the software authorized to use the revenue, and "cloud" after they can only receive a meager monthly software subscription fee. So whether the cloud is the whole of software companies? Forbes magazine published a recent analysis of the article, the following is an excerpt:

Last month, Saugatuck technology company (Saugatuck Technologies) held a "Cloud technology business Summit" in New York. At the meeting, one speaker commented that none of the new solutions developed in Silicon Valley today are enterprise client applications, but all cloud-based software. So, does it really need to be "cloud"?

Should all the software be put on the cloud or installed in the customer's company? This is a huge problem for software providers.

For them, "cloud" is a huge risk, for example, they can easily and stably gain access to software-licensed revenue, and "cloud" they can only receive a monthly meager software subscription fee.

In addition, software providers have to adapt to upgrade to data center operators, which is a completely different business, compared to the past only for their own staff to provide services, new business requirements are higher and more sensitive to aging.

Do every software provider really flock to the data center business?

Moreover, with the cloud platform, users are more likely to "faithless" to other software providers, and they can at least gradually collaborate with others. In fact, many cloud application providers seem to value their niche in client application software.

The It Channel Insight website did a qualitative survey and visited 16 of the largest software providers in the IT industry. 10 out of 8 people believe that "client software providers should not shift their strategic focus entirely to the cloud computing platform". Richard Mascot Azzopardi, the author of the survey, said that this reflected "the companies that started with selling client software only viewed the cloud platform as a complementary rather than a complete substitute for their main business".

The findings also reveal that most companies around the world, especially those with large and medium enterprises, still rely on machines within their companies to run their core applications and systems.

It is also interesting that these "everything can be cloud" software providers can do so frankly.

Indeed, no matter how much cloud computing will be in the future, no matter how much the cloud is expected-or already-to save for the enterprise, the cost of offloading enterprise core applications and systems from existing servers is quite expensive.

In addition, the transfer of client system software to the cloud also involves a variety of costs.

The U.S. Information systems Audit and Control Association (ISACA) recently released a cloud computing cost analysis that included several of these, including rewriting applications to enable them to operate in a virtual environment with cost, data reorganization to meet the cost of fixed-format software service providers, Set the cost of federated identity and access management, and the installation implementation costs associated with cloud system operations.

In addition, the extra bandwidth is an expense, and in order to be able to support the cloud service platform, the infrastructure components also need to be upgraded, which increases the cost of hardware devices.

Not to mention the consultancy fees needed to get through the initial loading period and learn the new system operation. In order to keep pace with the new system as soon as possible, you have to pay to train in-house it and business users, and the compliance tests for these systems are not free. Finally, we have to mention the huge cost of disrupting the business by updating the equipment.

As a result, although cloud services will continue to grow and client software businesses will continue to shrink, the client software will not be able to exit the historical arena so quickly for the foreseeable future.

While providers are eager to implement "cloud", as with any new system change, this trend has not lasted years or even decades to complete.

It is rumored that the 90 's antique DEC VAX system is still running some key core applications.

But as the direction of the big trend has been set, "cloud" is now a choice that people can accept.

Recently, cloud industry leader Azzopardi said in a speech that his corporate clients ' attitude to cloud services has changed, and their faith in cloud services is unthinkable a few years ago. Business users are better able to adapt to cloud services than IT departments. As Dell's vice president for cloud services infrastructure

Namdi (Orakwue Nnamdi) said: "Technology providers for enterprises and end users, rather than professional IT organizations and the chief information officer in the company, sales are gradually increasing." Employees are now able to buy (cloud) technology directly without a lot of capital investment or company approval. ”

Asigra Eran Farajun, executive vice president of the company, notes that cloud computing and mobile informatization are converging.

"As long as there is a network, people can get cloud services anytime, anywhere." It consumerism (BYOD) is an excellent example of how cloud computing blurs the boundaries between personal technology consumption and commercial technology consumption. If information is stored in the cloud and can be accessed anytime, then hardware devices are less important. ”

So the answer to the question, "If you're the operator of a software company, that's going to cloud the whole thing", is that it might be necessary for startups that are anxious to get a foothold in the market.

But I would say that unless your business is selling apps in an App store, running a software company now means being a datacenter provider. For older software providers, the transition may not be easy.

(Responsible editor: The good of the Legacy)