For the past year I held the unelected position of “Cloud Cost Czar.” I have written about the duties such a role entails in A Day in the Life of a Cloud Cost Czar. Recently I handed over the cost czar responsibility to a colleague who will carry on the daily routines and continue to improve our cloud cost management endeavors. In the handoff process, almost a year to the day of assuming the czar’s responsibilities, I reflected on the previous twelve months and all the accomplishments the company made as a united team to “tame the cloud.”
I created a graph to visualize the dramatic change over one calendar year. To the right is an area graph that shows subscriber seats (in green) overlaid on subscriber costs (blue, orange and red; our principle costs are cloud compute and two types of cloud storage.) As subscriber growth increased, costs went up, peaked, and then went down over the course of one year. The rise, peak, and subsequent decline all map to various cost cutting efforts initiated by Sonian engineering and support groups.
Throughout the year we got smarter on how to “purchase” compute time for less than retail, how to store more customer data while consuming less cloud storage, and how to process more customer data using fewer CPU hours. In the cloud, we re-affirmed with a high-five on each improvement, we were in control of our cost destiny. This is when the phrase “infrastructure as code” really means something.





With much fanfare, 




“Cloud Killed the (SaaS) Rock Star”
“Cloud Killed the (SaaS) Rock Star”…
… well, not literally, but definitely in a figurative sense.
The press release below is the all-points-bulletin heralding the cloud has “won.” Why do I say this? Because LiveOffice, a non-cloud SaaS start-up, couldn’t compete against the new generation of SaaS start-ups powered by true public cloud computing like Sonian.
LiveOffice was the rock star of SaaS archiving. Ten years in business and they deserve the credit as one of the pioneers to legitimize the SaaS market. When LiveOffice launched a decade ago, they had to operate their own data centers. (This is called “Co-located Powered SaaS.”) But during the past five years, the world changed underneath them. Usually, market dynamics cause this kind of disruption, but the SaaS archiving market size didn’t get smaller, rather it’s bigger than ever. What changed starting in 2007? The advent of the public cloud. Suddenly, any SaaS company running their own data center became vulnerable to competitors able to harness the cloud. This is the beginning of the cloud-powered SaaS era.
Seriously, I wish all the best to the LiveOffice team. Sonian and LiveOffice competed vigorously from 2008 to 2011. Symantec acquired a great team, and the fit between LiveOffice and Symantec makes a ton of sense, and it’s understandable why Symantec made the acquisition.
Although LiveOffice called themselves a “cloud archiving” company, that was stretching the truth. The cloud moniker is so overused at this point, the public is deceived into believing they are using a cloud service, when in fact, it’s really just re-packaging the same old SaaS with a new label.
Why did this Happen?
Operating a SaaS infrastructure on a pure cloud environment is vastly different compared to a co-located system; it’s the reason we’re going to see more of old-world SaaS companies change control or fade away. It will be exceedingly difficult to re-tool a co-located hosted SaaS business to use the cloud. Not impossible, but very difficult. The whole architecture would need to change. I say this having lived in both worlds — with the cloud battle-scars to prove it.
Read more…
Posted on March 4th, 2012 in Archiving, Cloud Compute, Commentary FWIW, email, Sonian | No Comments »