Posts by Bruce Arnold

Immature tech likely to get lucky in credit crunch

Cloud Computing and Corporate Culpability

Re: Cloud Computing Security Risks and Accountability for Loss of Data, Breach of Privacy and Other Violations

I am not a lawyer. I don't play one on television. And after my last divorce, I have no motivation to further enrich any member of the legal profession. Nevertheless, my first and best advice to any American business executive considering "cloud computing", "SaaS" or "PaaS" as cost-cutting solutions in recessionary times is GET THEE TO AN ATTORNEY!

Regardless of who wins the White House next Tuesday--Oblabla and the Mouth, or Geezer and Gidget--and no matter what remuda of Republocrats controls our Congress thereafter, the recently exposed excesses of Wall Street's Bonus Buccaneer CEOs guarantee increased scrutiny and accountability for executives at all levels and in all arenas, including and perhaps especially that of the CIO. In such a charged political environment, any harm, damage, loss or breach of HIPAA or other privacy mandates attributable to corporate decisions to outsource sensitive information for bottom-line benefit is likely to have repercussions that go far beyond reversing any perceived savings. And when time comes for the ax to fall in the boardroom--or worse, the gavel in the courtroom--rest assured that your cries to blame the Data Manager in Mumbai will fall on deaf ears.

Bruce Arnold, Miami Web Designer

http://WebDesignMiami.PervasivePersuasion.com

Cloud computing: A catchphrase in puberty

Kudos to the Cloud Crowd for Re-Inventing the Wheel!

One thing 30 years in the IT industry has taught me is that the more things change, the more they stay the same. Another is that the only memory we seem to access is short-term. Yet another is that techno-marketeers rely on that, so they can put labels like "revolutionary" and "innovative" on platforms, products and services that are mere re-inventions of the wheel ... and often poor copies at that.

A good example is all the buzz about "Cloud Computing" in general and "SaaS" (software as a service) in particular:

http://tinyurl.com/6let8x

Both terms are bogus. The only true cloud computing takes place in aircraft. What they're actually referring to by "the cloud" is a large-scale and often remotely located and managed computing platform. We have had those since the dawn of electronic IT. IBM calls them "mainframes":

http://tinyurl.com/5kdhcb

The only innovation offered by today's cloud crowd is actually more of a speculation, i.e. that server farms can deliver the same solid performance as Big Iron. And even that's not original. Anyone remember Datapoint's ARCnet, or DEC's VAXclusters? Whatever happened to those guys, anyway...?

And as for SaaS, selling the sizzle while keeping the steak is a marketing ploy most rightfully accredited to society's oldest profession. Its first application in IT was (and for many still is) known as the "service bureau". And I don't mean the contemporary service bureau (mis)conception labelled "Service 2.0" by a Wikipedia contributor whose historical perspective is apparently constrained to four years:

http://tinyurl.com/5fpb8e

Instead, I mean the computer service bureau industry that spawned ADAPSO (the Association of Data Processing Service Organizations) in 1960, and whose chronology comprises a notable portion of the IEEE's "Annals of the History of Computing":

http://tinyurl.com/5lvjdl

So ... for any of you slide rule-toting, pocket-protected keypunch-card cowboys who may be just coming out of a 40-year coma, let me give you a quick IT update:

1. "Mainframe" is now "Cloud" (with concomitant ethereal substance).

2. "Terminal" is now "Web Browser" (with much cooler games, and infinitely more distractions).

3. "Service Bureau" is now "SaaS" (but app upgrades are just as painful, and custom mods equally elusive).

4. Most IT buzzwords boil down to techno-hyped BS (just as they always have).

Bruce Arnold, Web Design Miami Florida

http://www.PervasivePersuasion.com

Investors introduce Salesforce to sell-off as a service

Is Salesforce.com the new ADP ... or the next Datapoint?

Is Salesforce.com the new ADP ... or the next Datapoint?

What will happen if blue sky clears the cloud?

***

This headline recently appeared in several places across the Web:

"Salesforce.com Passes $1 Billion Annual Revenue Mark"

THIS IS NOT TRUE. I don't know whether this material misstatement arose from media manipulation or an honest mistake, but it's genesis is most likely this 20 August 2008 press release...

"Salesforce.com Announces Record Fiscal Second Quarter Results"

http://tinyurl.com/5m5mea

...the subheading of which claims:

"First Ever Software as a Service Company to Exceed $1 Billion Annual Revenue Run Rate"

THIS IS NOT TRUE, EITHER. "Software as a Service" is marketing technospin for "service bureau". And payroll processing giant ADP--another service bureau--exceeded not only a "run rate" but actual annual revenues of $1 billion in 1985:

"The original outsourcer, Automatic Data Processing..."

http://tinyurl.com/56y5tx

Yes, SalesForce.com did report revenues of $263 million for their most recent quarter. And yes, they have raised "FY09 Revenue Guidance to $1.070 - $1.075 Billion". But NO, Salesforce.com has NOT passed the "$1 Billion Annual Revenue Mark". And despite Cheerleader/CEO Marc Benioff's effusive exuberance, some like Tiernan Ray do not share his enthusiasm:

"Salesforce's Deferred Revenue Debacle"

http://tinyurl.com/6oagtp

Perhaps in an effort to meet ever-inflating investor expectations--a fire they themselves have fueled--Mr. Ray notes that Wedbush Morgan analyst Michael Nemeroff "...thinks Salesforce may be pushing customers to sign more multi-year subscription contracts by lower prices, which could be hitting deferred revenue." And reading that, for me, brought on a disturbing case of Datapoint deja vu:

http://tinyurl.com/gk77r

"By the early 1980s, Datapoint was a Fortune 500 company. Under immense pressure to increase sales figures, its sales representatives encouraged customers to place large orders at the end of the fiscal year, permitting the company to count the orders as revenue even though the money had not been received and, in some instances, the sold equipment had not yet even been produced.... When some of the customers went broke before paying their bills, Datapoint had to reverse sales or record substantial bad debts, which caused the company to lose $800 million of its market capitalization in a matter of a few months in early 1982. The U.S. Securities and Exchange Commission (SEC) ordered Datapoint to stop this practice."

Is Salesforce.com the new ADP ... or the next Datapoint? Some say their business model is to take your watch and then bill you for the time. If so, what will happen to all those watches if blue sky clears the cloud?

Bruce Arnold, Web Design Miami Florida

http://www.PervasivePersuasion.com

IBM wraps fat tentacles around fluffy clouds

Kudos to the Cloud Crowd for Re-Inventing the Wheel!

One thing 30 years in the IT industry has taught me is that the more things change, the more they stay the same. Another is that the only memory we seem to access is short-term. A third is that techno-marketeers rely on that, so they can put labels like "revolutionary" and "innovative" on platforms, products and services that are mere re-inventions of the wheel ... and often poor copies at that.

A good example is all the latest buzz about "Cloud Computing" in general and "SaaS" (software as a service) in particular:

http://tinyurl.com/6let8x

Both terms are bogus. The only true cloud computing takes place in aircraft. What they're actually referring to by "the cloud" is a large-scale and often remotely and/or centrally managed hardware platform. We have had those since the dawn of automated IT. IBM calls them "mainframes":

http://tinyurl.com/5kdhcb

The only innovation offered by today's cloud crowd is actually more of a speculation, i.e. that server farms can deliver the same solid performance as Big Iron. And even that's not original. Anyone remember Datapoint's ARCnet, or DEC's VAXclusters? Whatever happened to those guys, anyway...?

And as for SaaS, selling the sizzle while keeping the steak is a marketing ploy most rightfully accredited to society's oldest profession. Its first application in IT was (and for many still is) known as the "service bureau". And I don't mean the contemporary service bureau (mis)conception labelled "Service 2.0" by a Wikipedia contributor whose historical perspective is apparently constrained to four years:

http://tinyurl.com/5fpb8e

Instead, I mean the computer service bureau industry that spawned ADAPSO (the Association of Data Processing Service Organizations) in 1960, and whose chronology comprises a notable part of the IEEE's "Annals of the History of Computing":

http://tinyurl.com/5lvjdl

So ... for any of you slide rule-toting, pocket-protected keypunch-card cowboys who may be just coming out of a fifty-year coma, let me give you a quick IT update:

1. "Mainframe" is now "Cloud" (with concomitant ethereal substance).

2. "Terminal" is now "Web Browser" (with much cooler games, and infinitely more distractions).

3. "Service Bureau" is now "Saas" (but app upgrades are just as painful, and custom mods equally elusive).

4. Most IT buzzwords boil down to techno-hyped BS (just as they always have).

Bruce Arnold, Web Design Miami Florida

http://www.PervasivePersuasion.com