Cloud Computing = No Thought Disaster Recovery Plan

I just finished reading a very interesting article over at Forbes.com. The article is mainly about how small business cope with the expense of disaster recovery on a small business budget. One of the interesting point the author brought up was that by moving to cloud computing and to web based services like Microsoft exchange, a company could have it main office burn down and move to a building a block down the road and be up and running again by simply hooking back up to the Internet with another PC.

I think that this might be a future move many small business will make. There are companies that are popping up that you can outsource all of your it needs. Imagine only having to pay one bundled price for your email, phone, applications, and server services to all be accessible over the Internet. Companies could access these services over the Internet from anywhere in the world while still being protected against any disaster.

Hello, Please open your laptop and feel free to browse.....

Most of us are use to the age of ritual of turning off all electronic devices when we board the 1980 contraptions that most airlines still use today. But this may all be changing soon. Jet Blue and Southwest have both announced plan to have in-flight wireless available to customers beginning in 2012. I think this is a smart move that is essential for today environment. People are becoming ever more "connected" and the time they lose in the air can actually cost them. With Jet Blue and Southwest making these moves, expect their business travel to sky-rocket until other competitors catch on. I know if I am flying I want to stay connected and will subsequently be choosing to fly with one of these airlines.

Google Instant Search: Why?

Google Instant Search is a daring new innovative attempt by Google to stay at the forefront of the IT world. With everything we have learned in class we have to wonder if Instant Search is worth the risk. Here is the facts. Google controls over 70% of all searches over the Internet. Yahoo and Bing combined only account for 25% of the market. One has to wonder, with Google controlling its market, was it a smart move for Google to implement this new technology. Was their competitive pressure for Google to innovate? Not really. Is Google losing market share? No. Does Google have more to lose than to gain from Instant Search? I think so. Google has a dominating position in the market with no contender within reach. If Google Instant Search is a big success than they might gain maybe 5% to 10% market share before their competitors imitate them. If Google Instant search is a failure, Google could lose its position as a market leader before they can rebound from the implementation of Instant Search.

Personally I like Google Instant Search; however, I think the risk of adding this technology out weighs any possible benefit they could gain. I think it would have made more sense for a competitor to implement an innovative technology. Although maybe this is the reason that Google is the leader in the industry.

Will the Cloud Kill Modern Outsourcing?

The times are coming to an end when a company could simply uproot its current IT operations and transplant them into a emerging country such as India and cut cost simply from the benefits of labor arbitrage. Why is this? A recent article in Businessweek by Arjun Sethi, outlined how this will happen.

How do I feel about this? I feel that economically and socially it makes perfect since. Google and Amazon are household names that the generation of tomorrow already trust. They are also technology behemoths that have the know how and financial strength to incorporate these technologies. As mentioned Google already processes transaction for Pfizer, which is by no means a small company.

In the end, economies of scale will declare the winner. Outsourcing benefits is shifting from a physical location to a efficient and reliable resource based service. This is where cloud computing comes in. It allows companyies to outsource their in house computing needs to large behemoths like Google and Amazon that will be able to handle large amounts of data at a lower cost per byte than in house operations or current Indian based companies.

From a managers perspective I see this as a good move. Besides the cost savings that economies of scale will offer, managers are going to be able to improve effeciences by having their data processed faster. Their are also inherent advantages when you deal with an industry leader, they know the industry. They are able to tell you how to use your data to gain the most knowledge, and in the end, the company with the best knowledge wins.

Note: This doesn't necessarily mean the end of tech jobs in India. This economies of scale will come through consolidation in the tech industry. In the long run the behemoths will buy up the Indian companies and transplant their model and efficiencies to these locations. True, some jobs will appear in the states; however, do not expect all of the Indian jobs that were once American to come back.

Is Apple's Control Strategy Sustainable?

I think something very unique about Apple is their ability to exercise such a high level of control over their customers. Most tech companies operate by providing either a hardware device or software technology. These devices and technologies are than combined into products such as mobile devices and computers that are sold on the market. Companies such as Dell, Hp, Microsoft, and Google all follow this strategy. These companies also believe in allowing the end user more control in how they use their products. Apple has always been known for exercising excessive control of their customers. Apple has control over every step of the process of the design and production of their devices. Apple makes their computers, monitor, operating systems, etc. Is this good? This is debatable.

Some argue it is a quality control issue. As i've said Apple controls every bit of its design and production. Take for example the iPhone. People have to submit and have their application approved. This allows Apple to watch over goes onto their products to ensure that their products run smoothly; however, this also allows Apple to censor whatever it deems inappropriate. Is this really good? For example, HTC's 4G phone supported by sprint allows users to use a feature similar to FaceTime over 3G networks. This feature does not work as good as it would over wifi but it still works. Apple has incorporated this feature on the phone, but only allows users to use it on wifi. From here one has to wonder. If someone would develop an Application that would allow users to use video chat over 3G instead just over wifi, would Apple allow it or deny it? I have to believe they would deny it to avoid the risk of making their company look bad. Is this in the best interest of the company? This is only one example of Apple flexing its are of control. Is this a sustainable model? As of right now Apple is a Goliath; however, an open source, free flowing David-like company could come in an dethrone Apple.

It is my belieth that knowledge, especially in the tech industry, can not be constrained. I think Apple may still have some room to grow; however, companies like SunMicrosystems with OpenOffice and Google with Google Chrome may bring down Apple. Technology is moving in the opposite direction of Apple. Will their current business model hold with this shift or fall?