Several big announcements rained down from the Internet clouds over the past few days. Amazon announced support for Microsoft Windows in their EC2 cloud. They will support both the Windows OS (AD, IIS, .NET, etc) and SQL Server. Additionally they are providing a 99.95% uptime SLA for their services. This is a respectable goal for a cloud hosting service.
Microsoft, not to be outdone, announced their own cloud computing offering called Azure. We all knew that Microsoft was working on a cloud hosting service over the past year. It’s nice to finally hear some of the details. Microsoft’s service is initially geared towards developers but it’s not hard to see that small businesses are the next likely target. Microsoft provides additional support in the cloud for technologies like Microsoft Dynamics, Sharepoint, and Live.
Someone recently asked me the question: “Are clouds going to compete with dedicated hosting services?” My response was both yes and no. Cloud hosting from Amazon and Microsoft will definitely compete with unmanaged dedicated hosters like The Planet and SoftLayer. Cloud hosting is nothing more than virtualized Platform-as-a-Service (PaaS). I also think cloud hosting will directly compete with smaller datacenter colocation deals. Think about it. If you are a company looking to colo half-a-dozen servers at a datacenter you could save significant capex and infrastructure headaches by using virtual servers in a cloud. Plus you could take advantage of the global business continuity features of a large cloud.
I don’t believe clouds will compete with managed hosting providers — yet. The simple reason is that cloud hosters don’t provide server management. They are purely infrastructure plays with some cool APIs. I’m sure some smart group of people is thinking about building a managed services business on top of a cloud platform. You just need the technical talent, marketing, and luck.
