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September 09, 2009 :: 1186 Views

The following story, by web and cloud platform maker Gizmox's head of biz dev, Gil Mor, is part of a series of posts about cutting-edge areas of innovation. The series is sponsored by Microsoft. Microsoft authors will participate, as will VentureBeat writers and outside experts.

Over recent years, major software developers have started offering their applications in the cloud. In the cloud model, instead of selling their software, they’re simply charging customers based on usage, turning themselves, to some degree, into utilities. The promise to customers is easy scalability and low infrastructure cost. The promise to the software companies is both a chance to upgrade their offering at any time and to make those upgrades immediately available.

This pay-as-you-go model also allows enterprise developers to reduce their capital expenditure (CAPEX) on building data centers without reducing their ability to innovate and come out with new offerings. And in the current troubled market condition, it allows organizations to pay for actual usage rather than build to handle the worst-case usage scenarios as most data centers are today. For the developer, potential cloud platforms include Salesforce, Amazon, Microsoft’s Windows Azure, Google’s App Engine, IBM’s DB2 on Demand, and VMware. Smaller companies are emerging to simply the management process and provide easy scale up and down based on market needs: RightScale, FastScale, and CA’s Spectrum Infrastructure Manager.

The full article was published on VebtureBeat >