Capacity Aggregation: Cloud’s Great Experiment

In my last post, I gave you an outline of what I see as the three biggest “killer apps” of cloud computing. There is, however, another facet to the cloud story that I think is very exciting right now: innovation on the core technical and operational models that form the basis of distributed computing.
(Credit: Wikimedia Commons)

What I mean by that is this: cloud has made new ways of acquiring and consuming infrastructure, platforms, and applications readily available to an increasingly broad market of potential users. The financial model–pay-as-you-go–makes failure much, much cheaper than it was with models in which the application owner had to lay out large amounts of capital up front to have somewhere to run their application.

That ease of access and experimentation makes cloud a new tool in the toolbox of technologists. And, as in any craft where useful new tools are introduced, those technologists are now trying to see if they can solve new problems that weren’t possible before. Today, the cloud is a place where the so-called envelope is being pushed to new extremes.

One of the most important of these experiments today is the introduction of true compute capacity aggregators–market services where capacity is available on demand, from multiple providers, with price and service competition.

Achieving a true capacity market, in which capacity can be traded as a commodity product like wheat or energy is an extremely difficult problem to solve. In fact, I’m on record as saying it will be many years before the technical and legal barriers to such a model will be removed.

However, I may be proven wrong, if services like Enomaly’s SpotCloud, ScaleUp’s Cloud Management Platform (specifically it’s new federation features), and stealth start-up ComputeNext (outlined by CloudAve blogger Krishnan Subraramian) have their way. These services aim to make the acquisition of compute capacity consistent across multiple sources, which is the beginning of an exchange market model.

The overall model is simple: those with capacity make it available to the service (though how that is done seems to vary by offering), and those that need capacity come to the service, find what they need, and consume it. SpotCloud is the most mature–you can play with it today–with the others coming online over the coming months, it appears.

The questions these experimental models hope to answer is two-fold. First, what model will the compute exchange market take? Both SpotCloud and ScaleUp take online travel industry models. (SpotCloud is modeled somewhat after travel clearinghouse Hotwire, and ScaleUp after aggregators like Orbitz or Travelocity.) According to Subraramian’s post, ComputeNext is taking more of a search engine model, though how they monetize that is unclear.

Second, how does one run various kinds of applications in what is almost inherently a transient infrastructure model? Given the fact that there is little guarantee that any given capacity will be available on a long-term basis, what types of applications can consume it today, and what kinds of innovations will expand that target market?

SpotCloud, in fact, forces this question, as its capacity is transient by definition (though they recently added instance renewal recently). So, the question becomes, is it a limited tool, or will some software developer create new management tools that run a distributed, “fail ready” application on transient infrastructure, creating new instances to replace expired instances when required without losing performance or availability?

By the way, there is no guarantee that these aggregators will be the source of compute exchanges. Other application-level management tools, such as enStratus (disclaimer: I am an adviser) and RightScale could handle capacity evaluation and acquisition in the application management plane itself, rather than as an online service consumed by the application management tools.

However, the existence of aggregators is one model that has to be explored before we can pick a utility “standard.”

There are many people who believe that some large portion of compute capacity will be provided in a utility model in the future. Are the early cloud aggregators of today the path to that vision? I’m not sure, but I can’t wait to see how these experiments turn out.

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One thought on “Capacity Aggregation: Cloud’s Great Experiment

  1. deepseema

    Cloud cumopting has only ever been a marketing push on the part of a few companies with vast resources in order to monetize under-utilized assets. None of the items on your bullet list are technologically anything more than what you get when you have a network and computers on it. It just happens that Amazon and Google are huge and have such large networks they can profitably rent their servers out. The only new thing that’s automatically scaling on the cloud is the billing.What you get with the cloud is scalability insurance. Of course, if your business explodes, it would be far cheaper to run your own data centers after all, Google and Amazon are not operating their clouds at a loss out of the kindness of their hearts. On the other hand, if your business doesn’t explode, you’re signing up to be a victim of their obtuse billing practices which boil down to try it out and see if it’s cheaper. If you compare fully utilizing the storage and bandwidth of a VPS to what that would cost over Google or Amazon, you’ll see you’re paying a nearly 10x markup for the same resources just for the privilege of doing it on-demand rather than up-front. This is setting yourself up to be blindsided by a black-swan spike in utilization. And of course, GAE and the like have radically different proprietary interfaces that make it extremely unlikely that you would be able to pull off a port to a traditional web-host in a hurry. Seems like a very unwise business practice to wire your expenses to a sliding scale like this, especially when 98% of business models do not have the scalability problem in the first place.This is because most businesses don’t make their money by exploiting large, dense graphs. I think the marginal utility of yet another application that makes use of large, dense graphs is getting dangerously low. Notice Google and Amazon make their money on something other than writing the kinds of applications that produce scalability problems with small numbers of users or low amounts of usage. Also, notice Facebook runs their own network despite the supposed amazing scalability advances of the cloud. If it’s not economical on the low end or the high end, what makes you think it’s economical anywhere else? If this isn’t about saving money, if it were truly about technology, there would be new technology here rather than glorified server provisioning and a bunch of proprietary interfaces to it. What could the cloud possibly be about besides branding and helping a few very large companies make a little more money? Google and Amazon are, after all, quite good at recognizing business opportunities and using them. And don’t kid yourself about Rackspace or Azure. Azure is nothing more than Microsoft’s obligatory product for this niche, and Rackspace certainly is aware of which things they do to achieve buzzword compliance versus where they make their real money.This whole thing is just another sad round of the centralized vs. distributed game we’ve been playing in computer science for the last fifty years. As Keith Braithwaite observed, It’s a curious thing about our industry: not only do we not learn from our mistakes, we also don’t learn from our successes.

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