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Sunday, August 19, 2007

The Hybrid Cloud - Enterprise 2.1?

Right now a lot of companies and services are popping up around the effort to offer what is called Enterprise 2.0 services for companies. One thing to realize is a lot of these companies and their services are subscription based models for software, and are hosted away from the user's office. What's upsetting to see is services like Zing which was out on Aug. 11th. Now for sure services will go down, and so that is why for most medium to large sized businesses the best model for Enterprise 2.0 services and technologies is a Hybrid mesh or cloud approach.

Basically, the subscription model can work, and can be hosted via a Web 2.0 interface. What most companies would rather go for in this subscription based would be a hybrid in that though it is subscription based, the hosting is done still on site at the customer level. This means that when a package update happens, the customer's site is setup to get that latest package deployment in a pull down to update their subscription. This serves the better model, and so the customer maintains and controls their own destiny for owning and maintaining their own data, and hardware, but has a subscription to the software. This is how I see Microsoft's Software + Services working in the Dynamics AX future. This is the Hybrid cloud in that the software + Services is hosted on the customers hardware, would links possibly to outside web services for non-critical applications. The software becomes subscription modeled, and the underlying core is updated when pushed out, and the customer still has the ability to adapt and change that software at a higher level. This serves the purpose of the subsciption modeled software, and also serves the customer's interest in that they host it and therefore can be up when Microsoft possibly goes down. [Or the VAR that is hosting it for them]

This will feel even more comfortable with the latest release of Office 2007 and SharePoint 2007. And then in the next releases of Dynamics AX and Office, when they release in sync, and office becomes the front end for Dynamics AX, via SharePoint the Hybrid cloud will be extended to the customers desktop / information workers, but still hosted in a hybrid way with the customer itself. Again this would solve the current problems that plague SalesForce.com's, Zing.com's, and Google.com's Enterprise 2.0 offerings. This is why it is Called: Software+Services vs. Software as a Service. The big difference, will make all the difference, and that's why the future of Dynamics AX keep getting brighter and brighter as well look forward to the full offerings of what software+services will be bringing to Dynamics AX customers!

Let me end in saying maybe Microsoft is offering Enterprise 2.1, as they see the issues with the current Enterprise 2.0 offerings from SalesForce.com, Google.com, and so forth? So I should start calling Microsoft's Software+Services, Enterprise 2.1! :-)

Check back soon as I continue to post!

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Blogger Unknown said...

Hi Brandon,

i do not really agree with you. Your basic argument in the text above is, who could manage an it environment better. Midsize companies who have often a lack in knowledge, even do not like to spend the money for securiury or reliability. Or on the other side professionals who know their business in these area?

If there is no other reason next to this, whats left? To goon with a complicate hybrid model? Or to keep the things where they are. In my opinion the market will choose what is more handy, more flexibel and more easier and a model they understand.

Therefore I believe, the real web modell on a multi tenant platform is on the way to change the way how IT is defined

10:49 AM  
Blogger brandon said...


First thanks for reading and replying. I encourage this type of debating and thought process. It is how inovation is sparked!

Second I qoute you:
"Therefore I believe, the real web modell on a multi tenant platform is on the way to change the way how IT is defined

I agree with that, and that is what I spelled out. That is the change you see. The Hybrid cloud I speak about above is one that is easier to manage. Sure there will be mid sized companies that will go with hosted all the way. Those like you desrcibe. But for the bigger one's, 400 million in Revenue+, the hybrid cloud makes the most sense. Once setup, it will be easier to maintain that todays current offerings by far, and the web services that are hosted, to the information worker, they will have no clue because it will be a seamless RIA, mashup of hybrid hosted and intercompany services and software.

Of course saying what the future will be like is tough, and I agree with your statement the most flexible and what makes most sense will come of age. And that is why I think Microsoft's Enterprise 2.1 is That solution. I may be wrong, but time will tell! :-)


11:02 AM  
Blogger Unknown said...

Microsoft's solution may be relevent today, just because of the way IT has been set up traditionally. A lot of those "$400+ million" companies have invested so much in their infrastructure that they don't want to scrap it. That doesn't necessarily mean that the hybrid is better overall solution, but it may look like a better solution because of how big of a shift it is to move completely to the on-demand model. The future of software is on-demand and multi-tenant - no question about it. Microsoft is slow to make that shift because it would make most of their products obsolete!

9:31 AM  
Blogger brandon said...


First thanks for reading my blog. Like above, I love these kind of comments and debating because it really makes you think about such things. It encourages real thought process, so thanks!

Now to what you state. I agree that on-demand and multi-tenant software model will be the best solution for some companies. These would be smaller companies that don't mind having someone else control their data, and would prefer that. For the larger companies though the Hybrid will win out. And not just because of the amount of money they have invested into their infrastructure, but also because a lot of companies want the ability to control over their solution. It will be a long time before the level of needed up time can be given for the 400+ million companies to trust in software comapnies to run their solution for them. Again the Hybrid is the best solution for them. Also could be the Hybrid is a bridge, in which Enterprise 2.1 is used to bridge to Enterprise 3.0 where real on-demand can exist and offer up times that bigger companies will like. Then peice by peice an on-deman solution would work. Still even then, a lot of the $400+ Million will still want to live in a Hybrid world for most of their high end solution parts.

Again thanks and I welcome such constructive comments. Let keep it going!


9:44 AM  

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