re: Savvis Cloud Storage Takes On Amazon, Google
Nice article, Charlie. Savvis has recognized what so many other service providers need to pick up on as well: that they can't simply rely on taking advantage of economies of scale against the big cloud guns. Instead of purely trying to drive down costs and preserve margins, they have instead chosen to differentiate through specific, value added services. In addition, it's interesting to note that while so many providers are targeting storage as the first means of competitive entry into cloud computing (which is a good bet considering the growing and cumulative need for long tail storage in the cloud), it is often forgotten that S3 is not truly intended for enterprise grade, persistent storage. The data on S3 will be wiped in case of failure GÇô so instances cannot be stopped and restarted as necessary. Hence Savvis is truly not targeting ISV's and DevOps teams, but rather the true enterprise decision makers that have long been comfortable paying for telecom service. So once EBS is taken into account pricing goes up a little more, ensuring not only zones, but physically distinct locations all add into the psyche of that decision maker as you so aptly point out. The larger point here is that although IaaS has an element of commoditization, there is still room for service providers to focus on the nuances provided within their value-added services. For example, DR and performance SLAs, driven by proactive enterprise-class management and support and managed application services that are aligned with critical business goals GÇô all of which will help them to keep up with the bigger players in the space.