Virtualization Technology and Telcos (and another survey request)

Cloud Services are already a significant market (estimated at $23B this year), and growing rapidly to $43B by 2012.  We've seen several operators launch cloud computing services, e.g. AT&T, BT, Deutsche Telekom (Zimory exchange), KPN, NTT, Orange, Verizon (CaaS (Computing as a Service) where HP was its main technology partner), and Vodafone. There is a lot of confusion about cloud computing.  Particularly the distinction between cloud-based services (e.g. SaaS, Software as a Service) and computing infrastructure offered on-demand (IaaS, Infrastructure as a Service).  The diagram below attempts to depict how the virtualization technologies and cloud computing services map.
Mapping.gifA generally accepted definition of cloud computing is the provision and management of rapidly scalable, remote, virtual computing resources, charged according to usage, generally using the internet to connect the resources to the user. But in virtualizing resources a user no longer knows what is running where, or the proximity of processors to storage.  This impacts security, bandwidth and control requirements - which is where telcos come in as they can help in solving these issues and offering a complete package on a simple metered basis.

Some example suppliers include:

  1. Virtualization, Infrastructure management and grid engine technologies: 3Tera, Cassatt, Citrix, Eucalyptus, Hadoop, IBM, Microsoft, Novel, Oracle (Sun), Parallels, Red Hat, Virtual Iron, VMWare
  2. Multi-tenant, deployment and cluster management technologies: 3Tera, Appistry, Elastra, Enomaly, Ecualyptus, Globus Alliance, Hadoop, Oracle (Sun), Platform Computing, Q-Layer, RightScale
  3. IaaS providers: Akamai, AT&T, Amazon, Citirx, ElasticHosts, Flexiscale, Globus Alliance, GoGrid, Joyent, Layered Technologies, Microsoft, Rackspace, Soasta, Verizon

However, as customers come to rely upon Cloud Services we've seen a number of failures:

  1. The recent Microsoft Danger outage: loosing contacts and messages for over 500k customers
  2. Google: Mail, search, news and apps have all had outages over the past 18 months
  3. Twitter and eBay PayPal: Both out in August up to half a day
  4. Rackspace: Down for one day
  5. Windows Azure: Down over a weekend in March
  6. Force.com: Down on Jan 6
  7. Amazon S3: Down last year