What the hell is Cloud Computing?
This is an old favorite, I suggest taking the required three minutes and listening to it. It is a recording of an interview with Larry Ellison (CEO of Oracle) years ago talking about Cloud where he sums up what all of us in the industry have been thinking for years.
It is a difficult time to be an IT Integrator, let’s use ‘mail’ as an example: for years we sold and implemented Microsoft Exchange and SBS Servers, today there is Microsoft 365. Problem solved? No Integrator needed, right? Not so much.
Mail is a good example of an application that belongs in the ‘Cloud’. Given Microsoft’s marketshare and dominance of the Mail Server Space, it seemed entirely logical to ‘follow’ Microsoft into the Cloud.
All other decisions are not that simple though.
Let’s use Frontier as a live example: we do four things (we’ve mentioned this before), one of the four is ‘Cloud’. Cloud to us is not as much about our own offering as it is a chance to partner with existing IT Integrators.
We think the market is a bit ‘confused’ right now – which is likely a good thing. It will create a much needed ‘pause’ where IT managers, CIO’s, CTO’s, CFO’s and CEO’s think about the integrity and reliability of their data.
We view our Cloud and Colocation business to be entirely separate and distinct.
A typical Colocation or ‘Colo’ is when a customer is looking for safe and secure room to store and operate their own IT server, telephony, and communication equipment.
A typical ‘Cloud’ customer is looking for a vendor supplied Server or Cloud Server, or Cloud Storage. Here is where the confusion lies, well over half of those who approach us don’t exactly know what they serves suit their needs.
What they do know is that they want ‘out’ of the IT facility support business, they are saying that they no longer want to own commodity IT assets like servers and storage. They also don’t want to operate, or be responsible for bandwidth, power, cooling, internet performance, denial of service attacks, etc.
When customers call companies like Rackspace and Amazon, they don’t know what to do. Often they don’t even understand the granularity of the pricing model (disk, memory, cores, transfer in, transfer out, etc).
Customers are also getting wise to the fickle and delicate nature of IT outsourcing. Just last month Amazon had their second (and largest) outage. This is where we should note that Amazon is a pretty amazing company with a good product. It is just complicated, hard to work with, harder to price out and budget and now difficult to have ‘absolute’ reliance on. It is in our opinion the better of all out there.
This is where the role of the ‘existing’ IT integrator can be solidified in this ‘cloud’ world.
We want to continue to work with IT Integrators to leverage their existing vendor or ‘VAR’ relationships to help them sell and implement their services and equipment in our facilities. Together, we can create cost effective ‘per user per month’ or ‘flat rate’ pricing models.
If integrators follow this, the days of 5-10% margins can quickly come to an end. With us, you will see where you can build a meaningful multi-year transaction with your customer(s) and gain access to the reoccurring revenue.
Frontier Networks Inc. is headquartered in Toronto, Ontario and provides Broadband Internet or MPLS, Voice lines or Cloud PBX (a replacement to old phone systems), cloud servers and colocation to Canadian Retail and Multi Site customers who demand world-wide coverage from a ‘new’ network. “We like to do traditional things in a non-traditional way”. Frontier has built a network that connects to other networks. Think of them like a large ‘backbone’ of interconnected networks. They connect to every phone company, cable company, wireless and hydro/utelco in Canada and the US through a series of well-connected Points of Presence (POPs). Simply put ‘we don’t suck’.
See more at: http://www.frontiernetworks.ca/blog