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Maximizing Your Mindshare (and Wallet Share) in the New World of SaaS
Thu, 01 Mar 2007 15:11:00 -0500
I really like SMBLive CEO Matt Howard's way of looking at software as a service. (Some argue that we should start calling it software enabled service.) Matt says running a business is all about maintaining "5 conversations": with oneself, co-workers, external partners (vendors/contractors/distributors), customers and the general public. So ideally, web apps should facilitate personal productivity,
collaboration, vendor management, CRM and sales/marketing.
Traditionally, hosting providers have focused on helping customers maintain a web presence - which only fulfills 20% of the functionalities Matt describes. So I thought it was pretty awesome when Barbara Branaman mentioned that Concentric is in the process of integrating its new collaboration service with its clustered hosting and email solutions. I said the unified offering should help Concentric increase mindshare. Barbara said also importantly, it will boost wallet share. The goal is to earn a larger slice of more customers' IT budgets.
Barbara will need to keep a close eye on Google, whose Apps Premier cover about half of the 5 conversations. Remember last December's headlines about Microsoft battling Gmail for corporate workers' attention? It seems Redmond faces an even tougher challenge with respect to productivity apps: Ars Technica reported yesterday that Google Docs and Spreadsheet account for a 92% share of unique visitors, and 95% of the amount of time spent. I'm not impressed with Google Pages, but Blogger is pretty popular. I'm sure sooner or later both will be rolled into Google Apps, along with Google Base.
Meanwhile, have you heard about eBay's new partnerships with ERP/CRM provider NetSuite (spotted via Mark Crofton's blog) and popular social network Bebo? And SalesForce is looking to build a "circle of success" around its CRM app; David Berlind says their odds are decent.
Earlier David Snead asked via a comment on an earlier post whether easy interoperability between different vendors' apps will obviate the need for hosting providers to customize services for any audience. Based on Rodney Loges' experience, I think the answer is no.
Rodney (who was instrumental in digitalNATION's $100 million sale to Verio as well as Rackspace's launch of its Intensive service) has transformed his company from a web development firm into a SaaS provider by assembling a suite of best-of-breed content management, web analytics, collaboration, etc, tools for associations and non-profits. Each hand-picked application meets specific requirements that his customers share. I think that's what it takes to win in SaaS/SES - of which hosting is just a small percent. In other words, the key is customer segmentation.
Over the month, there were only One Downtime detected, and last for 12 failed check, that is equal to one hour downtime. Remainging days are all 100% uptime.
Web Hosting : Zone.net - Horrible Experience - Over 24 Hours Down and Counting
Sat, 08 Nov 2008 12:49:38 +0000
Hostgator and Bluehost are our best webhosts and godaddy.com is the best domain registrar.
This web hosting thread started by jessebhunt on 8 November 2008
I just wanted to post here to let everyone know about the horrible experience that I’m currently having with Zone.net
My VPS has been down for over 24 hours, and there doesn’t ...]
February 2007
Mon, 12 Feb 2007 16:32:20 -0400
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Web hosting providers uptime compared
Wed, 27 Jun 2007 12:44:20 +0000
I found an interesting link that compares 20 of the most popular web hosting providers, by overall speed and best uptimes. It’s interesting to see the results. Check them out here http://blog.mon.itor.us/?p=325
Uptime Institute Says Power to Cost 300-2250% More Than Server Hardware; What Does This Mean?
Sun, 11 Mar 2007 22:31:00 -0500
I came across Uptime Institute founder Ken Brill's CIO Magazine article via 3tera VP Marketing Bert Armijo's blog.
Ken says while hardware prices are falling, total cost of data center ownership is headed through the roof. 5 years from now, the purchase price for a rack of servers will drop 27.5% from $138K today to just $103K. But while it only takes 15 kilowatts to power that rack right now, the energy requirement will rise to 22 - 170 kilowatts by 2012. It could cost as much as $2.3 million to power/cool $103K worth of gear throughout its 3-year lifespan.
(I'm not sure if this figure includes switches and routers and such. A recent Cisco/APC/Emerson study shows that servers/storage/cooling consume 76% of data center power, with 11% going to networking equipment, 3% lighting, and 10% power conversion losses. If Uptime's calculations didn't take the other 24% into account, Ken's $2.3M becomes over $3M!)
I've been thinking about Ken's stats and trying to understand what they mean. As a point of reference, I was looking at Dell's website, which advertises the 4U PowerEdge 6950 dual core, dual processor Opteron server for about $9K. Is Ken saying that:
(a) This particular machine will cost 27.5% less 5 years from now?
(b) 2012's late model machines will sell for 27.5% less than what's on the market today?
(c) The amount of server hardware that fills up 4U of space will be available for $6500 in 2012?
If we assume he means (c), and we accept Sun's claim that "server performance, power and space efficiencies are improving at up to 40% annually on average, and could double every 2 years", then 4U of space may be able to accommodate not one but 4 servers that each feature 4x more processing power and 4x greater energy efficiency.
In other words, $6,500 could buy you 16x more computing resources than that dual Opteron! If that's the case, you might even be able to afford $1M per rack per year in electricity. But only if you virtualize like crazy. No more leasing data center space per square foot or per rack. No more dedicated servers, either. The average customer won't need 4x more processing power in 5 years, which means you won't be able to justify turning on a whole entire server just for them.
You'd also have to replace hardware early and often. Sun recently announced a refresh service for swapping out your servers at least 3 times over 42 months. At first I thought that sounded wasteful, but if server power efficiency is improving at 40% per year, holding on to old gear might end up costing you more. Again, virtualization would be a must. You wouldn't want customer apps to become attached to machines that will be phased out before long.
Bert from 3tera says changes in data center economics will make it increasingly difficult for enterprise CIOs to justify operating their own facilities. But they won't outsource to traditional colo or dedicated server providers. Instead, he agrees with Cassatt CEO Bill Coleman that in the near-ish future, you'll be "paying for data center horsepower the same way you pay for electricity or gas". I think so too. How about you?
PS - On a somewhat related note, eWeek says Intel will release its "Clovertown" chips today. The quad core processors have a 50 watt thermal envelope, versus 80-120 watts on earlier models. That's a 38-60% drop.
PPS - Also, speaking of the Uptime Institute, check out this SearchDataCenter.com interview on how they've helped The Planet save $10K/month on electricity. The Planet, the article says, is looking to expand beyond Texas into the Midwest.
Unless you're actually trying to run high traffic sites at virtually no cost, you should not really be concerned about this. Actually, the fact that everybody has aligned on "unlimited" will let you shift your focus on more interesting differentiating factors between software companies, such as:
Magento Containers Now Available
Thu, 17 Apr 2008 07:54:38 +0000
We’re excited to announce Magento Containers, an industry first, highly optimized hosting environment built specifically for Magento. Now available for immediate purchase, Magento Containers comes in a Lite and Pro version to fit any budget.
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