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@CloudExpo: Blog Post

This Magic Moment

They do not come often; make sure you are prepared to take advantage of it….

This November, I am presenting at SYS-CON's 4th International Cloud Computing Conference & Expo in Santa Clara, CA. I welcome any opportunity to speak about my favorite subject: cloud storage, and how the cloud storage segment is providing a viable roadmap for how to create a profitable cloud computing industry.

One year ago, the Mezeo Software team was finalizing plans to emerge from stealth mode. Since that time, the cloud storage market has undergone some significant changes and advancements. We may not have crossed Moore’s proverbial chasm just yet, but the energy in the space is tangible. As an industry, we are very close to a tipping point.

In my talk at Cloud Computing Expo, “The Profit Model for Cloud Computing,” I will discuss how the cloud storage space has quickly evolved. It is truly a “magic moment” situation for those who have historically been responsible for providing IT infrastructure. In fact, the very foundation of that market is shifting before our eyes due to the advent of cloud computing, and other factors including economic changes and technology advancements.

What used to be known as the “Web hosting industry” is now better described as the “IT service provider space.” The old label is just too limiting. It is not just about hosting Web sites anymore. New applications, requiring compute and storage clouds, are hitting the market, including new Web-based applications. To satisfy these evolving needs, cloud storage solutions are now a necessary element of the IT service provider’s infrastructure.

From an IT service provider’s perspective, daydreaming about the glorious profits associated with cloud computing, including cloud storage, may be nice, but the truth is that if they don’t adapt, they will go out of business. Period.

Thankfully, the discussion doesn’t end there, because that would be a pretty short and depressing presentation!

So what are the emerging infrastructure needs and expectations? I will cover the basic cloud computing infrastructure and cloud storage and explain how they work together to deliver a cost effective solution that allows for the following:

  • A convergence of the mutual interests and capabilities of the enterprise and service providers.
  • Scalability in terms of unique moments of demand such as “the Oprah effect.”
  • A pay-for-use model that allows access to capacity on an as-needed basis at any given time versus always paying for what’s provisioned to meet maximum demand. What a waste!
  • Op-ex versus cap-ex.  Driving down infrastructure costs by using cloud computing images.


I will also discuss the expectations of Web developers who are creating the new applications that are reshaping the industry. Simply put, they expect to access a robust, programmable storage with advanced services via REST APIs. Cloud storage provides them unlimited capacity and extraordinary parallel access to match the scalability of performance that their CCIs need and it does this at a very low, compelling price point.

As that world busily gets fired up, it will create a number of revenue stream and profit opportunities. And that’s where it gets really interesting. You see, people will look for these services via a trusted service provider. Small businesses will pay. Big businesses will pay to develop internal clouds and you and your family will pay to preserve, protect and share your data.

My discussion will highlight the following:

  1. The new world that’s coming for the service provider.
  2. New revenue streams and profit opportunities.
  3. What you should be doing now to prepare for all of this.
  4. How the enterprise can also benefit through cost reductions, new opportunities for collaboration and opportunities to enhance profit.

I will discuss the five revenue stream opportunities and the profit consequences associated with each. We will also drill down into the unusual opportunities that the enterprise can take advantage of, including greater collaboration, cost efficiencies and profit enhancement.  Here is a hint: it goes far beyond just gigabytes of storage per month.

I hope you’ll join me at SYS-CON's 4th International Cloud Computing Expo. My session, “The Profit Model for Cloud Computing,” is scheduled for 3:25 p.m. on Monday, November 2nd. The conference runs November 2-4 at Santa Clara Convention Center. More information is available at http://cloudcomputingexpo.com/.

More Stories By Steve Lesem

Steve Lesem is President/CEO of Mezeo Software. Previously, He was Senior Vice President and Chief Marketing Officer of the managed hosting provider VeriCenter. He has also served in leadership positions at SafeNet, BMC Software and IBM. Steve holds a Bachelor of Science from the University of Texas at Austin. He is the primary author of the Cloud Storage Strategy Blog (www.cloudstoragestrategy.com), which frequently sees posts picked up by publications in the IT services and Web hosting spaces.

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