At its Professional Developers conference last week Microsoft unveiled its transformational strategy “Windows on the Web” to take businesses and consumers into software services over the Internet. Building on the success of Windows, Microsoft is introducing what it describes as the third tier of computing in which massive data centres will give businesses access to unlimited capacity for databases, storage and business applications. But if you think the credit crunch is scary consider for the moment that one company may have overarching control over your data and business processes. Gary Simon, FSN’s managing editor looks at some of the implications of blowing away the clouds.
In a wave of excitement Microsoft last week announced its foundation for cloud computing (computing over the internet) – Windows Azure. A gushing Ray Ozzie, Microsoft’s Chief Software Architect, described the announcement as nothing short of a “turning point for Microsoft” and a “transformation of strategy and offerings across the board to embrace services” over the internet. The idea would be to give businesses the capacity they need – a sort of pay as you go facility - to acquire scalability as needed and access to business applications rather than be concerned about the cost and complexity of provisioning the infrastructure in-house. In one massive move, Microsoft is apparently waving a magic wand over computing and relieving businesses of the burden of meeting the insatiable demand for capacity and services.
Noting the continuing revolution in computing Microsoft’s Ozzie described the abundance of computing capability and to some extent the redundancy and lack of inter-operability between different powerful devices in distinct environments. The so called “Experience Tier” comprises the desktop PC, the mobile laptop, PDA and mobile phone. The “Enterprise Tier” comprises the databases and business applications residing within most organisations and the newly announced “Web Tier” represented by Microsoft Azure, is a new operating system over the web that will provide access to many of the components previously residing in the Enterprise Tier and will tie together end users with the services and business applications they need over the web.
The pressure point identified by Ozzie is the growing need of organisations to service more users outside of their physical boundaries than inside. It is this inexhaustible demand for access to applications that is creating pain for organisations across the board, be they full service e-tailers or simply mid-range businesses with growing customer bases and prospects that need to be served over the web.
Microsoft points out that existing Windows applications will continue to be supported by Windows Vista which means that businesses and business software houses can decide whether they wish to deploy solutions over the web in a hosted environment or continue with an on-premises solution.
In effect, developers can build new applications that run in the cloud, or enhance existing applications with cloud-based capabilities. Business customers can elastically scale their systems up or down as needed to meet changes in their business environment, such as a holiday shopping rush, a burst of news about the company, or downtime during vacations.
Businesses have further choice when it comes to how they design their IT infrastructure. They can use the computing power of a Microsoft data centre, a Microsoft hosting partner, their own servers or any combination of the three. A business can focus its IT resources on tasks that are strategic and mission-critical, while sending other services to the cloud says Microsoft. This could be especially valuable to small- and medium-sized business that can more easily meet the needs of their customers by taking advantage of scalability and applications typically reserved for large enterprises. With systems that are fully integrated and connected, it can save busy entrepreneurs a great deal of time and money, says Microsoft.
Some commentators have portrayed Microsoft’s announcement as an answer to the ever encroaching domains of Amazon, Google and SalesForce.com who have all built substantial presence on the web, but Windows Azure clearly goes beyond any limited ambitions in this area. Azure has been in gestation for a number of years and the combination of a new operating systems combined with the pervasiveness of the technology stack is likely to put the Windows Azure solution well beyond the reach of any competitive threat.
The real threat to Microsoft’s endeavour is likely to be much more fundamental and its timing, unwittingly coinciding with the most radical transformation of the global banking systems is a touch unfortunate. Those who rushed to access their internet bank accounts only to find them technologically frozen by demand are acutely aware of the limitations of both telecommunications infrastructure and the dangers of vesting too many resources with one supplier.
Those who have struggled with Broadband services, from almost any Internet Service Provider will fully appreciate that the communications infrastructure, not IT capacity, is likely to be the limiting factor for the foreseeable future. The cloud itself is the Achilles heel of cloud computing and until businesses see a vast improvement in broadband capacity and reliability cloud computing might remain a pipe dream.
The other issue brought into sharp relief by the global banking crisis is the prospect of a data meltdown, where business applications and data are concentrated in the hands of an increasingly powerful Microsoft, its subcontractors, partners and agents. Unlike the financial crisis governments will be powerless to remedy any problems.
To those who say it can’t happen just look at what has happened to our most venerable global banking institutions. Microsoft has been circumspect about announcing timescales and pricing and it is clear that Windows Azure will not happen in earnest for some time to come. Perhaps this will provide the breathing space necessary to put cloud computing in order, with appropriate protective legislation and safeguards for consumers and businesses before we all hurtle lemming-like into uncharted waters.
