HewlettNetSuite-HP deal brings partners closer to cloud computing

Hewlett-Packard (HP) partners can now sell NetSuite's hosted business applications and other services into their accounts. Both vendors said the NetSuite-HP deal, announced today, will help bring traditional channel players into cloud-based computing. information technology consulting NetSuite executives also hope the deal will give their company better traction into small and medium-sized business (SMB) accounts -- HP's bread and butter. This is how for a hardware vendor to supply its resellers another revenue stream they will mix with hardware sales," said Mini Peiris, vice chairman of product marketing for NetSuite. NetSuite helped pioneer the Software as a Service (SaaS) craze with its hosted enterprise resource planning (ERP) and customer relationship management (CRM) services. the seller has long offered its partners a bit of the continued revenue stream, as long because the account is active and therefore the reseller remains the partner of record. The typical margin works bent be 30% on the deal value when it closes and another 30% per annum for the length of the subscription. 

information technology colleges Partners also reap higher margins if they sell into tons of latest accounts and hit volume targets. Executives from NetSuite and HP wouldn't say what the margins are going to be for HP partners participating during this deal. In addition, NetSuite is running the majority of its infrastructure on HP ProLiant servers and StorageWorks storage in its data center, Peiris said.  Janet Pretti, HP's vice chairman of channels, said many of the company's Elite partners are going to be curious about selling NetSuite. The target customers are SMBs with 10 to 999 employees. AMI Research estimates that 64% of midmarket companies view CRM as a strategic application, but just 16% have implemented the technology. That's the large opportunity we're watching," Pretti said The single biggest question for the channel, especially during this economic climate, is what function traditional value-added resellers (VARs) or plain-old resellers will have within the SaaS or cloud computing world.

Software resellers are forced to shift toward more value-added specializations. The few remaining large account resellers (LARs) tout their expertise in helping big companies manage and track software from many vendors.cloud technology companies And other VARs play up their application development and customization expertise. But because the vendors that reigned within the software world -- Microsoft, Symantec, et al. -- are rushing to the cloud, VARs fear a loss of customer control. Still, other VARs are offering hosted services on their own Whether or not a VAR will view the addition of NetSuite services to the merchandise arsenal as a plus or minus depends on the sort of partner it's. "If you're just selling hardware, you'll take anything you'll get. You basically hook the seller up to the customer, walk-off and obtain some revenue stream. If on the opposite hand, you are a partner who does ERP or CRM implementations yourself, this could be a nasty thing for you," said George Brown, CEO of Database Solutions, a King of Prussia, Pa.-based solution provider.

NetSuite has been creative in trying to recruit new partner types but has seen mixed success. A pilot program it inaugurated with CompUSA's small business tech reps two years ago just about folded when CompUSA closed the relevant locations. The NetSuite-HP deal is that the first of its type for either company, although it'll likely not be exclusive. Both Pretti and Peiris said to remain tuned about future alliances. It's a shift for the tester, too. for instance, Chaudhary said, "If you build an application and you employ the BlackBerry to access a producing application hosted by a cloud company like Salesforce, Salesforce does a particular amount of testing, to make sure the server is out there, etc. But when it involves the appliance itself, does it run on two phones or 50 phones? does one have an extended page to load?" In addition, the cloud hosting company may use a third-party service to hurry performance. "The impact on testing is that the end-user experience is being influenced by my company, by the cloud provider, and everyone other parties involved," he said.

Reducing testing costs
While Lounibos said Mountain View, Calif.-based Soasta Inc. features a growing group of consumers that do not own servers and do everything within the cloud, "the majority are still more traditional; they use managed service providers and are dabbling within the cloud." However, he said, cloud-based testing may be a way for organizations to find out the cloud and reduce the prices of testing at an equivalent time. Traditional customers see testing as a money pit. They're trying to find ways to scale back costs. The [main] argument for cloud computing for the enterprise is, is it reliable enough," he said. "This isn't so for testing. Testing [in the cloud] just replicates the important world; it doesn't have the problems related to production, but it's the advantages of cost reduction." With cloud computing, Lounibos said, testers "have access, availability, and affordability to enormous amounts of computing power, which is what's needed in testing. the thought of having the ability to provision 125 servers in 5 to eight minutes and only buy the hours your test is so compelling. You do not need to have huge test labs for Web applications."

Soasta's CloudTest, for instance, is out there as an on-demand virtual test lab within the cloud or as an appliance. It supports load, performance, functional, and Web UI/Ajax testing. consistent with Lounibos, "We were built on top of the cloud for the cloud." For its part, Keynote offers KITE (Keynote Internet Testing Environment) for testing and analyzing the performance of Web applications across the web cloud. KITE offers instant testing from the desktop also as from a spread of geographic locations. For Internet applications especially, Chaudhary said performance testing must move to the cloud. When it involves performance, you are not depending just on the appliance but on all the providers [involved]. And does one [the user] have DSL or a dialup line, or a mobile device? Performance testing naturally is environmental," he said. For mobile applications, Chaudhary said both performance and functional testing should move to the cloud.

"For mobile applications, functional testing also depends on providers. Say you have a screen for login. the dimensions of the page and therefore the screen on phone and the provider can all affect if the appliance works," he said. By testing within the cloud, Chaudhary added, organizations can more easily and cost-effectively test for many devices. With applications that run on the cloud, "you got to test network performance, server performance, database performance, software performance on the appliance, and the way it's cached within the client," said Dennis Drogseth, a vice chairman at marketing research company Enterprise Management Associates Inc., based in Boulder, Colo. "If you've got one application that runs in one place, you'll test it geographically in one place. What you've got with an Amazon or Facebook, for instance, is all types of pieces coming in from different geographies, and you cannot know before the time where they'll be. It's definitely more complicated than running a test script on one server-based application."

The challenge is to run tests across all the various components and geographies to spot problems, he said, and organizations that develop an application "typically do not have access to those sorts of environments. So [a company like] Keynote is giving those testers a working environment where they leverage the web cloud and every one the vagaries and appearance at real networks and desktops." New testing tools needed Drogseth said new sorts of testing tools are going to be needed. "You can't do cloud computing with application development testing tools for a LAN or one server. you would like tools to permit you to know the network and desktop implications and every one the pieces. you would like to bring the network to the developer." I suspect over the subsequent five years every testing vendor will attempt to come to the cloud. I feel we'll have a replacement generation of testing companies," said Lounibos. "This [cloud computing] may be a big market coming down the road; it's just the way we'll consume services."

Rackable Systems CloudRack designed for cloud computing
Fremont, Calif.-based Rackable Systems, Inc. is catering to cloud computing environments with a replacement server rack designed specifically for cloud environments called Systems CloudRack, the corporate announced October 30. This new product from Rackable is one among many who we are seeing from vendors who try to style new equipment or re-purpose existing equipment for cloud computing environments, which are characterized by a CloudRacklarge number of server nodes in scalable data centers providing SaaS (Software-as-a-Service) to users. According to Saeed Atashie, director of server products at Rackable, CloudRack was created with the density and power efficiency cloud environments demand.CloudRack is a 44U cabinet that supports up to 88 servers, 176 processors from either AMD or Intel, 704 cores, 352 TBs of storage and up to 8x 3.5” drives/board (4 drives/CPU). it's designed to be power-efficient, and straightforward to service, consistent with Rackable.

“CloudRack is meant from the ground-up with cloud customers' needs and buying behavior in mind,” Atashie said. “In comparison, the variety of our competitor's design for a general-purpose (one size fits all) server market then attempts to position these products within the cloud computing market.” Rackable also announced servers for HPC and cloud environments back in June, the XE2208, with twice the density of existing Rackable Systems servers. Rackable is focusing products on the cloud computing market because it's “the latest industry mega-trend,” Atashie said. Other companies focusing products on the cloud include IBM, VMware, HP and Intel. Rashie said Rackable already has customers lined up for the CloudRack, but wouldn't disclose any names. generally, CloudRack will appeal to companies using cloud computing or those using high-performance computing, the corporate reported. The Rackable Systems CloudRack CR1000 model are often built to order. More information about specific configurations, pricing or Rackable Systems’ build-to-order model is out there on Rackable Systems’ website.s Microsoft dissing SOA just to push Azure Cloud computing?

 Los Angeles, Calif. – Introducing Windows Azure for Cloud Computing at Microsoft's Professional Developers Conference, Bob Muglia, the president of Microsoft's server and tools business, positioned it because of the next step beyond service-oriented architecture. But analysts who cover both SOA and Cloud Computing challenge the comparison of the 2 also because of the criticism of the service-oriented approach to application development.
At PDC, Muglia labeled Azure a "fifth generation of computing," on a timeline that showed the four past steps as monolithic applications, client/server applications, Web applications and repair oriented architecture (SOA). He argued that SOA is restricted in its ability to scale, whereas Microsoft's approach to the cloud is made to scale. The Azure Services Platform builds on SOA but has a fundamental difference," he asserted. "SOA doesn't scale well. The cloud needs a platform built to scale out from the start ."