« NetApp Makes A Move ... Sort Of | Main | Data Domain Gets Bigger »

April 07, 2010


Omer Ansari

Great post, as always Chuck. I would add to #7 (Compatible SPs) that we at Cisco are starting to see changes in the way SPs interact with vendors and even other SPs..

To start with, SPs, mostly in the emerging markets, are starting to drive vendors to a risk/reward based model.

I recall the very public Bharti Airtel offshoring model earlier in the decade where they started exploring such models with Ericsson/IBM for their mobile business.
Since then, other SPs in closeby geographies have started to do the same, and the framework has bled itself into Data Centers and cloud computing models.

Apart from payment deferment, which helps SPs acquire customers and pay back vendors when the customer revenues starts flowing, other areas where smaller tier SPs are starting to show interest is re-branding, and white-labeling a subset of bigger SPs offerings.

In fact I believe this "white labeling" use case (instead of the multi-SP disaster recovery use-case) will be the catalyst to driving development and real implementations of inter-cloud workloads. This is because it brings different SPs directly together as business entities, as opposed to being forced together by enterprises (as in the case of the hosting at different SPs for DR purposes).

While US-based cloud providers have the "white labeling" revenue stream squarely part of their business case, the risk/reward sharing model appears to be a non-US phenomena at this time. But much like how the US has learnt and embraced innovation from outside (Toyota's lean manufacturing comes to mind), I'm certain its only a matter of time that the risk/reward based models will become a mainstay here as well.

** these are solely my thoughts; I do not represent Cisco **

The comments to this entry are closed.

Chuck Hollis

  • Chuck Hollis
    SVP, Oracle Converged Infrastructure Systems

    Chuck now works for Oracle, and is now deeply embroiled in IT infrastructure.

    Previously, he was with VMware for 2 years, and EMC for 18 years before that, most of them great.

    He enjoys speaking to customer and industry audiences about a variety of technology topics, and -- of course -- enjoys blogging.

    Chuck lives in Vero Beach, FL with his wife and four dogs when he's not traveling. In his spare time, Chuck is working on his second career as an aging rock musician.

    Warning: do not ever buy him a drink when there is a piano nearby.

    Note: these are my personal views, and aren't reviewed or approved by my employer.
Enter your Email:
Preview | Powered by FeedBlitz

General Housekeeping

  • Frequency of Updates
    I try and write something new 1-2 times per week; less if I'm travelling, more if I'm in the office. Hopefully you'll find the frequency about right!
  • Comments and Feedback
    All courteous comments welcome. TypePad occasionally puts comments into the spam folder, but I'll fish them out. Thanks!