Microsoft names their SaaS "Cloud Infrastructure Services"

Information Week in this weeks issue, is reporting about Microsoft's epiphany regarding Software as a Service. This is not new. Microsoft for several years has offered through resellers like HP, SPLA (Service Providers License agreement). What may be new is Microsoft may have discovered, 1) Advertisement supported on line services, and 2) the strategic ability to "eat their own young." The second may even be more important that the first.

With Its Head In The 'Cloud,' Microsoft Talks Web Services

Company leaders outline progress, promise more resources, in software-plus-services push.

By J. Nicholas Hoover
InformationWeek
July 28, 2007 12:00 AM (From the July 30, 2007 issue)

Microsoft last week continued to sketch out its emerging software-as-a-service strategy. In speech after speech at the company's annual meeting with financial analysts, Microsoft executives discussed the company's high-priority shift from a heavy reliance on shrink-wrapped software.

"From my viewpoint, every one of our software offerings is either a socket for a new attached service or an upgrade or up-sell opportunity to extend a product's value proposition up to the Web and potentially through to mobile devices," said chief software architect Ray Ozzie.

Throwing talent, resources, money at the ad business Microsoft's online architecture starts with a "foundation services" layer that includes the data centers from which its Web services run. The number of servers in Microsoft's services infrastructure has more than doubled in the last year, according to Ozzie. A new data center will break ground this week in San Antonio.

At the next level are "cloud infrastructure services," which Ozzie described as a kind of "utility computing fabric" of virtualized services, application frameworks, management infrastructure, storage, and network services. Microsoft expects to offer those capabilities to developers and to enterprise customers over time, Ozzie said.

The other layers in Microsoft's services model include "Live platform services" (identity and presence services, for example) that have an online advertising infrastructure, and applications such as CRM.

Microsoft will give Web-based "click-to-run capabilities" to Windows applications, CEO Steve Ballmer said. Jeff Raikes, president of Microsoft's business division, added that there's a place online for "traditional office productivity," though he didn't say whether that meant Web versions of Office apps or lesser collaborative document editing and sharing capabilities.

Microsoft will extend its software offerings with "connected productivity scenarios" that might include document sharing, note taking, meetings, and universal access on the Web and mobile devices, Ozzie said. For line-of-business employees, CRM, lightweight ERP, and "issue-tracking solutions" may be in store.

Microsoft has been investing heavily in its advertising platform, including the $6 billion it's spending to acquire aQuantive. Last week, it disclosed plans to buy AdECN, an ad exchange that Microsoft officials likened to a stock exchange where ads are auctioned off to advertising networks that are exchange members. Yahoo bought an ad exchange, Right Media, earlier this year.

'HELL-BENT' ON SUCCESS
"We are hell-bent and determined to allocate the talent, the resources, the money, the innovation to absolutely become a powerhouse in the ad business," said Ballmer. "This is essential if our software-plus-services vision is going to come to fruition." And there was progress to report: Microsoft last week revealed deals to serve advertisements to visitors to social news site Digg and in-game advertising for five EA Sports video games.

As part of that effort to innovate and gain market position, Microsoft said it has formed an applied research group called the Internet Services Research Center to accelerate the development and deployment of Microsoft advertising technologies. The group will be headed by VP Harry Shum, formerly chief scientist for the company's search and advertising platform group under senior VP Satya Nadella.

Until the next post,

Steve

Let the Mash Ups begin.

Last month it was SalesForce.com and Google announcing a strategic alliance. This month it is Zoho and Facebook. But there is another type of Mash Up that has my interest today.

That is the mash up between hardware, software and services. Zonbu is offering a very small footprint Linux based PC for 99 USD. Included is a version of Linux with enough applications that meets the needs for many users.

Open Office and Mozilla are the two main applications included with a total of 20 available. There are games, media players and IM also on board. One of my now must have applications, Skype, is also included. For a complete list of included applications visit the Zonbu Application URL.

It has been known for years that thin clients consume less energy. In many countries the reduction in energy costs when combined with the cost to remove the heat that a standard PC will generate, offers paybacks times in months, not years. Now small, fanless, footprint PCs are achieving a similar lower energy use.

Zonbu offers ten reasons, listed on their website, for you to use Zonbu solution.

1) Green avenger

energy efficient design helps protect the planet.

2) Virtual virtuoso
Comes with every program most people ever need.

3) Incomparable Value

For $99 and $12.95 a month, run Zonbu anytime, all the time.

4) The fast life
Sets up in seconds, and everything's plug & play.

5) Self-assured
Automatically installs patches, upgrades and protects against viruses.

6) Happy exchanges
Easy hardware replacement — with all your data intact.

7) Easy going
Access your data from any PC — anywhere on the Internet.

8) Forget-me-not
From photos to tax numbers — automatically backs up all your data.

9) Penny-wise
Efficient hardware saves up to $10 per month on energy bills.

10) The small, silent type
Quiet operation and elegant, compact lines.

The question that now needs to be asked is “where is the value?” Yesterday I took one of my thin clients, an old NTA 6020 and dropped in 256 meg of memory, 4 Gig SanDisk and installed Ubuntu Feisty Fawn. I suppose you could contact Ewayco.com and order from them something very similar to what Zonbu has to offer. But both solutions would be missing what Zonbu is offering.

Are their more powerful packages available? I am writing this post using Microsoft Word hosted on a 64-bit machine running Vista Ultimate. Cables run everywhere. The machine to my immediate left has Microsoft Server 2008 with TS installed. Next to it is Server 2003. Add network storage, printers and few more boxes, but now I would be missing the point also. Zonbu is offering a turnkey solution that they think meets the needs of enough people that they can grow a business. The solution is really the triad of hardware, software, and online service, packaged with some green paper and pledge to “make it just work.”

Below is “The Concept” as presented in the sites FAQ.

"Zonbu was started to radically simplify and enhance your computing experience by offering an affordable, hassle-free, environmentally-friendly personal computer and software suite that take advantage of advances in open source software, self-healing architectures, and Web services. These combined advances enable one of the first dramatic changes in the personal computing model since the advent of personal computers.”

Comes with a three-year warranty. So what are the real costs in USD?

The PC is $99.00. Per month subscription 12.95 times 36 = $466.20. If you do not have a monitor, mouse or keyboard you will need to purchase them. Lets add $200.00. Could speed more or less.

The other major cost is broadband but that would be the same as if you had a PC. Subtract the three years of Antivirus you will not need if your current OS needs one. Subtract any repairs cost associated with your current solution. Add shipping costs for sending back a broken unit. Zonbu will cross ship a replacement unit.

Subtract energy savings. Depending on your location, the saving may offset the monthly subscription.

Subtract all software costs. All the software that you can use is included and maintained (updated) by Zonbu. This is the real test. You cannot add you own software. If you want something that is not on the menu, go to another restaurant. Here is that link back to the applications list. Remember, that you have a world class browser to access any online applications from other vendors like Google, Saleforce.com, Zoho, Facebook, et al. Maybe not that much of a problem after all, but just maybe not for everyone.

Zonbu does offer the option of purchasing the device for 249 USD if you choose not to participate in the two year service subscription. Service subscription begins at 12.95 USD for the basic service that includes 25 GB of server side storage. For an additional monthly subscription of 14.95 USD or 19.95 USD, server side storage can be increased to 50 or 100 GB.

My personal opinion is that this is a very viable option for more just a few. May need time and tender loving care to refine the total product into a sustainable package. I wish for them much success.

Now if they just had an inexpensive, small footprint laptop with Wifi…..!

Until the next post,

Steve