Wired Calls out Cloud Computing in the New NEW Economy

The era of the huge conglomerate is over.
Illustration credit: Andy Gilmore

Yes, ‘New’ is in there twice.

Wired Magazine online called out cloud computing in its headline story today:  Th

e New New Economy: More Startups, Fewer Giants, Infinite Opportunity.  Chris Anderson aptly wrote about the disaggregation of large corporations that is happening now and the growing diseconomies of scale: Continue reading “Wired Calls out Cloud Computing in the New NEW Economy”


The Cloud Economy: Part 3

I disagree a bit with Pine and Gillmore about the Experience Economy.  They describe it as following the agrarian, industrial, then service economy.

To me, all of the economies they outline are about service.

Services are supposed to be the exact opposite of physical goods, Continue reading “The Cloud Economy: Part 3”

The Cloud Economy: Part 2 – cloud economics from George Reese

A very insightful post from George Reese, author and founder of Valtira and enStratus, on the Economics of Cloud Computing on O’Reilly.  He gives a side-by-side comparison of the cost of Internal IT versus Managed Services versus The Cloud.

Don’t miss his final analysis: Continue reading “The Cloud Economy: Part 2 – cloud economics from George Reese”

Venture Capital – $$$ for Your Cloud Startup

Want to know which Venture Capital firms are putting money into the cloud?  Cloud application service provider startups abound, and money for them will only be flowing until 2010.  At least, that’s what James Staten of Forrester says.  After that, James doesn’t think that any VC firm would give you a second glance if the word “cloud” is in your business proposal or in your name.

Why?  Because we’re in the “trough of disillusionment”, according to the cloud Hype Cycle.  The cloud bubble will be bursting around 2010.  Losers in this space will disappear as we reach the “slope of enlightenment”, and then those who are doing interesting things will continue on and experience real productivity and profitability.

Enough about that.  You need to know where to get money for your startup.  Here’s my list of VCs, angel investors, and companies in this space who have provided funding recently. Continue reading “Venture Capital – $$$ for Your Cloud Startup”

The Cloud Economy: Part 1

Everyone in the U.S. seems to be talking about our economy.  It’s in poor shape.  We’re spending billions on wars and bailouts.  Job loss is on the rise (with 1.2M jobs lost so far in 2008), home sales are losing ground, and we’re in a leadership transition that leaves some people feeling in limbo.

So, what does the economy have to do with cloud computing?  I think the better question is “What can cloud computing do for the economy?”

There is a new business trend emerging — one that begins with a partially or completely outsourced cloud IT infrastructure.  Some businesses are cropping up that could not exist without cloud computing.  Why?  Because  if they needed  to put in place a viable IT infrastructure, they couldn’t afford to open the doors, especially if they do not have enough cash to fund their idea or they fail to get a venture capitalist interested in chipping in.  Cloud computing allows these very businesses to open shop without a big outlay of cash, take less risk, be more agile, experiment until they find success, and grow much faster and more independently than their predecessors.

I believe this new generation of business will take hold and take off — and that this will take us into the “cloud economy”.  Here’s a spreadsheet that explains a bit of the thought process.


Discuss amongst yourselves.  Part 2 will be delivered shortly.