Friday, April 26, 2013

Which SaaS vendor just passed the billion-dollar mark? Microsoft

Which SaaS vendor just passed the billion-dollar mark? Microsoft
Office 365 seems to be catching on.

Despite a lot of confusion around how it works, it seems Microsoft's SaaS version of the flagship Office suite has pretty quickly grown into a billion-dollar business. According to the most recent financials from Redmond, Office 365 is now on a billion dollar run rate and continuing to grow at a brisk pace.

For those who have been quick to throw dirt on Microsoft's still warm body, Q3 showed the company exceeding $20 billion in revenue and $6 billion in profits. This at a time when everyone laments the drop in PC sales. Most companies would give away their CEO's children to have those kinds of numbers.

Truth be told, $1 billion, in terms of the total revenue, suggests that Microsoft Office is not a major piece of the pie. The division that makes up Office did more than $6 billion this quarter alone, for instance. That being said, the billion-dollar mark is a watershed for this new way to consume Office, and shows Microsoft's muscle in competing with other online productivity suites like Google Drive. From the briefings, it seems all of Microsoft's cloud-based businesses, including the Azure Cloud, Xbox Live and Office 365, are doing pretty well.

Another factor that was discussed around the earnings is that many of the Office 365 seats are coming from large enterprise accounts. About 25% of enterprise customers are using at least some Office 365 seats. Also, many of the Office 365 seats are the higher-cost, premium versions, which translates to higher revenue and profit for Microsoft. This bodes well for Microsoft as more and more attention and revenue shifts to the cloud.

All in all, Office 365 has grown about 500% in just one year. Of course, maintaining that sort of growth rate over the course of the next couple of years will be difficult, if not impossible. But it is clear that Microsoft has used its cash cow productivity suite to give itself an anchor in the cloud/SaaS business landscape.

Microsoft has also made Office 365 more channel-friendly, allowing VARs and MSPs to bill customers directly via Office 365 portal. Putting Office 365 into the hands of Microsoft's sizeable and powerful channel is a surefire way to increase its sales.

As I have written before, I use Office 365 for Home, which allows me to put it on five computers in the house. The only thing missing for me is if I could run it on Android tablets. But at $9.95 a month with 25GB of Skydrive and Skype minutes included, I think it is an excellent value.

Some of the initial confusion that held back earlier adoption of Office 365 is that many people didn't realize that the applications are installed on the machine. You can access web-based versions of the apps on guest computers, but on your own computers there is little difference between the SaaS-based and traditional versions.

So maybe the old dog can learn new tricks. Good for Microsoft, if it has been able to adopt the new SaaS-based methods. Now, for their next trick, let's see if they could only sell more Windows 8 phones and tablets.

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Tuesday, April 23, 2013

Five Ways to Improve Your Enterprise Social Networking Strategy

Enterprise social networking software, which offers social media capabilities adapted for workplace collaboration like employee profiles, activity streams, microblogging and document sharing, has evolved from a "nice to have" to a "should have" status in enterprises.

Picking up on that shift, Microsoft plunked down more than $1 billion last summer to buy Yammer -- at the time a leading independent provider of ESN software -- in order to boost ESN capabilities primarily in its collaboration server SharePoint and also in other products like Office, Lync, Outlook and Dynamics.

[ USEFUL TOOLS: How to tell if your Twitter, Facebook and LinkedIn efforts are paying off ]

While Microsoft has been busy working on integrating Yammer with SharePoint behind the scenes, it's now clear that the effort is complex and that a fusion of the products will take at least two more years to complete.

For now, the integration deliverables will be modest. Microsoft said in March that Office 365 customers will get the option this summer to replace SharePoint Online's activity-stream component with Yammer's activity stream.

In this basic integration, when users click on the Yammer link, it'll open up a new browser window and ask them to sign into Yammer. In the same timeframe, Microsoft will deliver a Yammer application that will let users embed a Yammer group feed into a SharePoint site, both with SharePoint Online and with SharePoint 2013 servers installed on customer premises. Microsoft will also make it possible for customers to replace the newsfeed in SharePoint 2013 servers installed on premise.

Later in the year, the integration will deepen with a single sign-on and the inclusion of Yammer in the Office 365 interface. Yammer will also gain integration with Office Web Apps, the browser-based version of the Office productivity suite, before the end of the year.

In 2014, Office 365 customers can expect integration between Yammer and other Office 365 components beyond SharePoint, such as Lync and Exchange. Yammer is also being integrated with Microsoft Dynamics enterprise software.

SharePoint, first launched about a dozen years ago, has been the 800 pound gorilla of collaboration servers for a long time, but it has struggled to keep up on the enterprise social networking front.

Microsoft increased SharePoint's native ESN features in the 2010 and in the latest 2013 version of the product, but as its acquisition of Yammer shows, even the company recognizes it needs to do more.

"The issue with SharePoint has been that enterprise social moves very fast and SharePoint doesn't, because it's a big, complex product" that does many other things, says Forrester Research analyst Rob Koplowitz.

In fact, SharePoint's ESN limitations opened up the opportunities for other vendors to come out with products that augment or replace SharePoint for ESN.

"The interesting thing right now is that we're starting to see a maturing market with some emerging leaders," Koplowitz says.

So what should be the strategy for CIOs regarding SharePoint, Yammer and competing ESN tools at this market's crossroads? Below we offer analysis criteria and suggestions.

Not All ESN Vendors Are Created Equal

Companies that make ESN software fall into three categories: collaboration platform companies, business application vendors and specialty players.

Microsoft falls into the first category, along with others like IBM with its Connections product and Cisco with WebEx Social. These are big software vendors that have other collaboration and communication products.

Then there are enterprise application vendors that have added ESN complements for their core ERP and CRM suites. That's the case of Salesforce.com with its Chatter product and of SAP with Jam. Middleware vendor Tibco has an ESN product called Tibbr.

Finally, there are the smaller niche players like Jive Software, Socialtext and NewsGator which focus solely or primarily on their own ESN products.

Thus, a criteria for CIOs, especially those whose organizations aren't yet using ESN software, could be to look at the vendors they're already doing business with.

"See what vendors you have existing relationships with and may prefer to work with," says Larry Cannell, a Gartner analyst.

There are pros and cons that are evident on the surface for vendors in each category. The vendors in the first two categories are larger, with more resources, and thus can be assumed to be more stable. They can also offer the promise of broader software stacks that are natively integrated with their ESN components.

However, they will inevitably approach ESN from their ownperspectives, and it's not clear to Cannell which one will emerge as the most appropriate one.

"Is ESN an extension of other unified communications, collaboration and email products? Or is it an extension of business applications," he said. "We don't know how that's going to shake out yet. There are credible arguments on both sides."

Moreover, the smaller specialists not only focus exclusively on ESN, but they also often find it easier to move faster when adapting their products to customer feedback and technology innovations. They also don't have to comply with the competitive mandates of a larger corporate parent, and can thus be more agnostic in their partner relationships and third-party software integrations.

Determine Your Level of Comfort with the Cloud

A key consideration for CIOs should be their organization's willingness or reluctance to have their ESN software running in a public cloud.

ESN is most effective when it becomes an underlying layer of social collaboration capabilities that are integrated into the applications employees use on a daily basis, whether it's email clients, CRM software, ERP applications, office productivity applications or video conferencing wares. Obviously, the data involved in all of those applications can be highly sensitive.

Thus, IT leaders need to decide whether their ESN deployments will be all on premises, all in the cloud, or in a hydrid scenario, and then look into what the different vendors offer.

In the case of Microsoft, most SharePoint deployments to date have been on customer premises. However, the company has made it clear that the future of SharePoint and Office products in general is in the cloud via Office 365.

So Microsoft will support both models, but it is placing the development and innovation emphasis on the cloud-only Yammer and on SharePoint Online, the cloud version of the product that is part of the Office 365 cloud collaboration and communication suite.

It's not clear to what extent Microsoft will be able to maintain in sync SharePoint Online and SharePoint server, assuming SharePoint Online will be upgraded much more frequently and Yammer will remain cloud-only, Cannell said.

Koplowitz added: "If Yammer is the bet, then what about those folks who want SharePoint but can't go to the cloud?"

In light of those questions, CIOs who want to keep their SharePoint server on premises can rely on ESN add-ons like NewsGator's, which has been one of the preferred add-ons for years, and remains especially attractive for companies who aren't comfortable using SharePoint Online.

NewsGator's Social Sites is designed for SharePoint implementations on customer premises or in dedicated private clouds. Recently, the company has been working on extending Social Sites so that it will function not just as a SharePoint add on, but also play that part for other collaboration and business applications.

Other products offer cloud, on premises and hybrid deployment options, including IBM Connections, Jive and Tibbr, while vendors like Salesforce.com stick with a cloud-only approach with its Chatter product.

ESN Software May Be Used in Your Company Without Your Knowledge - and That Would Be Good

Some CIOs still pondering what ESN software to choose would be surprised to find out that employees have done an end-run around IT and adopted ESN tools already.

In fact, a lot of Yammer's adoption has happened in this way, as pockets of employees and managers sign up for the service and invite colleagues to join their network without consulting the IT department.

"See if a network already exists, find out who started it and learn how it's being used," Cannell says.

CIOs and IT managers on this quest should refrain from shutting down the networks they find.

"Don't look at this like a policy violation but as an opportunity to learn how you could use these tools," he said.

IT leaders should establish a relationship with these first adopters and build on their interest for ESN in order to get others enthused and eager to adopt ESN software.

"This isn't email or audio conferencing, where you put the service out and people naturally pick it up," he says. "We're not there yet with ESN."

If You Don't Want to Wait for the SharePoint-Yammer Integration, Look Elsewhere, or Keep What You Have if It works

IBM's Connections, first released in 2007, has been a solid product, in particular as an ESN complement for SharePoint, according to Koplowitz.

In its most recent release this year, Connections is aiming to become a broader competitor with stronger document and content management capabilities and improved analytics features. IBM is also pushing ESN bundles tailored for human resources and marketing departments specifically.

A few years ago, Electrolux, a Swedish appliance vendor, decided it needed to give its employees an ESN tool that would help spur innovation and collaboration. The company used SharePoint, but quickly decided the native ESN capabilities in the product at the time weren't enough for its needs, and deployed IBM Connections. Today, the company uses both products -- SharePoint for more static intranet functions like team sites, and IBM Connections for social collaboration interactions like microblogging and activity streams.

"We wouldn't have been able to accomplish what we wanted to do with the standalone SharePoint," said Ralf Larsson, Electrolux's director of online employee engagement and development.

"Connections and SharePoint can co-exist because they are really good at different areas," he added.

As for Jive Software, Koplowitz sees it taking advantage of its ability to move fast and to be agnostic with regards to its interoperability with third-party business software.

Cannell shares a similar opinion. "Jive is a very viable vendor and a leader," he said.

Salesforce.com's Chatter has also become a dominant product in the ESN market, according to Koplowitz, who also said he has been surprised by the success of Tibbr. "Tibco's made it. Tibbr has risen above the fray and sold very well," he said.

Cannell calls Tibbr "one of the most interesting" ESN products.

InterPortPolice, an inter-governmental agency for collaboration among airport and seaport law enforcement authorities in the U.S. and abroad, decided to adopt an ESN tool recently. Early in its selection process it crossed out SharePoint because of its poor mobile access, a recurrent criticism of the product that lasts to this day.

Instead, it chose Tibbr, whose mobile support met the agency's needs. "Ninety percent of our people are away from their desks 90 percent of the time," said Jay Grant, Secretary General of InterPortPolice.

It also found SharePoint's enterprise social collaboration features lacking, and thought the product better suited for document management tasks thanfor people-centric collaboration, he said. Tibbr, on the other hand, gives the agency the type of social collaboration interaction it was looking to provide its users.

But Be Aware that Microsoft Promises Big Rewards for Those Who Go With SharePoint-Yammer

The rewards from the deep integration of Yammer with SharePoint, Office, Outlook, Lync, and other Microsoft products will be tremendous, according to Adam Pisoni, a Yammer co-founder who is now an engineering general manager in the Microsoft Office Division.

"From a product perspective, combining social with Office and SharePoint is going to yield a product that has the most integrated experience around document collaboration, creation, co-authoring and social than any other offers out there," he said.

"It's an extreme breadth of capabilities that we're bringing together seamlessly in a social way," he added.

As the fusion of Yammer with SharePoint and the other Office 365 tools progresses, the interfaces and user experience will be unified and eventually become a single product that tightly integrates all of the functionality.

"The end result will be greater than the sum of its parts," Pisoni said.

That vision is exciting for Dawn Gartin, collaboration manager at Manhattan Associates, a supply chain software vendor.

The company started using SharePoint in 2007, but about 18 months ago decided it had to add an additional ESN tool. It picked Yammer, a few months before Microsoft acquired it.

The sooner Microsoft is able to fully integrate the products, the better, as far as she's concerned.

Manhattan Associaties, which uses SharePoint 2010 on premises, is now drafting its plan for upgrading to SharePoint 2013 and possibly shifting some tasks for SharePoint Online, thus having a hybrid deployment.

The company uses SharePoint for its intranet and Yammer for employee interaction and collaboration.

Its users much prefer Yammer, which was quietly introduced by the CFO and achieved 96 percent adoption in about a month among the about 2,400 employees. SharePoint, after six years of use, is nowhere near that level of adoption.

"SharePoint for us isn't as widely well liked for a variety of reasons that aren't all necessarily SharePoint's problem," she said.

"That's part of the lesson we're looking at as we move forward to SharePoint 2013 and with the integration of Yammer: How that will all work together from a collaboration standpoint as our platform. How we can help the user get what they want from wherever they are," she said.

The company, which has a BYOD (bring your own device) policy regarding smartphones and tablets, is also eager to see SharePoint extend its mobile access, she said.

"It'll be important for us to see that kind of functionality on all of the devices," she said.



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Sunday, April 21, 2013

70-451 - PRO: Designing Database Solutions and Data Access Using Microsoft SQL Server 2008

QUESTION 1
You work as a database developer at Certkingdom.com. You need to plan a SQL Server 2008 database
that will be accessed by mobile users.
The database must be able to profile data before importing it from heterogeneous data sources,
including Microsoft Office Excel, Microsoft SQL Server 2000, Microsoft SQL Server 2005, and
CSV files. In addition, Certkingdom.com's mobile users must have collaboration and offline capabilities
and they must be able to use heterogeneous data stores.
How should you plan your database if you want your design to use the least amount of
administrative effort?

A. You should make use of the Analysis Services and the Notification Services.
B. You should make use of the SQL Server Agent.
C. You should make use of the Integration Services and the Microsoft Sync Framework.
D. You should make use of the Service Broker and SQL Mail.

Answer: C


QUESTION 2
Certkingdom.com has hired you to design a SQL Server 2008 database for its online retail application. The
database must be able to run both Transact-SQL statements as well as SQL Server Integration
Services (SSIS) packages. Certkingdom.com plans on running scheduled maintenance tasks on the
database and they want the database to send alerts and notifications to the network
administrators.
How should you design this database?

A. You should make use of the Analysis Services and the Notification Services.
B. You should make use of the Reporting Services.
C. You should make use of SQL Server Agent.
D. You should make use of the Service Broker and the Notification Services.

Answer: C


QUESTION 3
Certkingdom.com hires you as their database administrator of their SQL Server 2008 database
infrastructure. You need to optimize a very large database table for query execution against string
data. The database contains several million rows of data. You need to ensure that the queries are
performed in order of proximity and are completed in the least amount of time possible.
How should you configure the database?

A. You should create a partitioned view on the table.
B. You should create a nonclustered index on the table.
C. You should make use of the Analysis Services.
D. You should enable Full-Text-Search.

Answer: D


QUESTION 4
You work as a database developer at Certkingdom.com. You need to design a SQL Server 2008 database
named Sales. The Sales database will have tables named Customers with an identity column
named CustomerID, Products with and identity column named ProductID, SalesReps with an
identity column named RepID, Orders with an identity column named OrderID, and Invoices with
an identity column named InvoiceID.
Sales representatives are assigned to specific customers with each Sales Representative being
assigned to more than one customer.
You need to ensure that the database is normalized and that it represents the relationship
between the Sales Representatives and the customers.
How should you design your database?

A. You should create a foreign key constraint between the SalesReps and Customers tables.
B. You should make use of the hierarchyid data type on the SalesReps table.
C. You should add a SalesRep2Customer table with foreign key constraints to the SalesReps and
Customers tables.
D. You should make use of a table-valued function on the SalesReps table.
E. You should make use of a view based on the SalesReps and Customers tables.

Answer: C

Explanation:


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Monday, April 15, 2013

70-646 Q and A / Study Guide / 70-646 Videos / Testing Engine

QUESTION 1
You work as the Enterprise administrator at Certkingdom.com. The Certkingdom.com network has a domain
named Certkingdom.com. The servers on the Certkingdom.com network run Windows Server 2008 and all client
computers run Windows Vista.
The Certkingdom.com network contains more than 3,000 computers. Certkingdom.com wants to make use of
Windows Server Update Services (WSUS) updates. You thus need to setup the appropriate
storage mechanism so that it provides high availability.
Where should you store the WSUS updates?

A. In a storage subsystem as a RAID 10.
B. In a network load balancing cluster.
C. In a newly created Group Policy.
D. In a Distributed File System (DFS) link that is configured to utilize several replicating targets.

Answer: D

Explanation: You need to keep the updates on a Distributed File System (DFS) link that uses
multiple replicating targets. This will ensure that the updates highly available. The DFS contain the
following capabilities: views of folders and files, that is a virtual organization where those files
physically reside in a network.
Reference: Step 4: Set up a DFS share
http://technet.microsoft.com/en-us/library/cc708533.aspx


QUESTION 2
You work as the Enterprise administrator at Certkingdom.com. The Certkingdom.com network has forest with two
domains named us.Certkingdom.com and uk.Certkingdom.com. The functional level of the forest is set at Windows
Server 2008.
A new Certkingdom.com security policy requires that the local guest accounts and administrator accounts
should be renamed. You have to ensure that the local guest accounts are disabled after it has
been renamed.
How can this be achieved?

A. By using a custom network profile.
B. By using a Group Policy object (GPO) for every domain.
C. By using a folder redirection on all the root domain controllers.
D. By using a ServerManagerCMD tool for the root main.

Answer: B

Explanation: You need to use Group Policy object (GPO) for every domain. With this you can
rename administrator accounts as well as renaming and disabling the local guest accounts.
Windows Server 2003 also permits you to modify the administrator account and guest account
names with a Group Policy.
Reference: HOW TO: Rename the Administrator and Guest Account in Windows Server 2003
http://support.microsoft.com/kb/816109


QUESTION 3
You work as the Enterprise administrator at Certkingdom.com. The Certkingdom.com network consists of a single
Active Directory domain named Certkingdom.com. All servers on the Certkingdom.com network run Windows
Server 2008 and all client computers run Windows Vista.
Certkingdom.com has its headquarters in Chicago where you are located and a branch office in Dallas that
employs a number of helpdesk staff. You have to implement a new server named Certkingdom-SR10 in
the Dallas office. The setup policy of Certkingdom.com states that all helpdesk staff have the necessary
permissions to manage services. The helpdesk staff should also be able to configure server roles
on Certkingdom-SR10. You need to accomplish this ensuring that the helpdesk staff have the least
amount of permissions.
How can this be achieved?

A. You should make the helpdesk staff, members of the global security group.
B. You should make the helpdesk staff, members of the Server Operators group on Certkingdom-SR10.
C. You should make the helpdesk staff, members of the Account Operators group on Certkingdom-SR10.
D. You should make helpdesk staff, members of the Administrators group on Certkingdom-SR10.

Answer: D

Explanation: To add the helpdesk staff to the Administrators local group will give full
administrative access to an individual computer or a single domain. The user must be a member
of the Administrators group to change accounts or stop and start services or install server roles.
Reference: Using Default Group Accounts
http://technet.microsoft.com/en-us/library/bb726982.aspx
Reference: Securing the Local Administrators Group on Every Desktop
http://www.windowsecurity.com/articles/Securing-Local-Administrators-Group-Every-Desktop.html


QUESTION 4
You work as the Enterprise administrator at Certkingdom.com. The Certkingdom.com network has a domain
named Certkingdom.com. The servers on the Certkingdom.com network are configured to run Windows Server
2008 and the client computers run Windows Vista.
Certkingdom.com has its headquarters in Paris and branch offices in London and Stockholm. You are in
the process of devising a file sharing policy to ensure standardization throughout the network.
Your policy needs to ensure that the Certkingdom.com offices are able to access the files using the
universal Naming Convention (UNC) path. In the event of a server failure files should still be
accessible and the minimum bandwidth needs to be utilized.
You need to determine the components that need to be added to your policy?

A. You should add a DFS namespace that is domain-based and uses replication.
B. You should add the Hyper-V feature to your policy.
C. You should use failover clusters with three servers, one for each office.
D. You should add a DFS namespace that is server-based and uses replication.

Answer: A

Explanation: To comply with the CIO’s request, you need to use domain-based DFS namespace
that uses replication. To implement domain-based DFS namespace, the servers need to members
of the Active Directory domain. Furthermore, domain-based DFS enables multiple replications.
Multiple DFS replicas also provide some fault tolerance.


QUESTION 5
You work as the Enterprise administrator at Certkingdom.com. The Certkingdom.com network has a domain
named Certkingdom.com. All servers on the Certkingdom.com network run Windows Server 2008 and all client
computers run Windows Vista.
The Certkingdom.com network contains a Windows Server 2008 failover cluster that in turn hosts a
database application. During routine monitoring you discover that the database application make
use of almost half of processor and memory usage allocated for it. You want to make sure that the
level of performance is maintained on the cluster.
How can this be achieved? (Choose TWO. Each answer forms part of the solution.)

A. By using the Windows System Resource Manager (WSRM)
B. The using event subscriptions.
C. By using the Microsoft System Center Configuration Manager (SCCM)
D. By establishing a resource-allocation policy for process-based management.
E. By establishing Performance Monitor alerts.

Answer: A,D

Explanation: You need to use Windows System Resource Manager (WSRM) and set up a
resource-allocation policy for process-based management. The Windows System Resource
Manager (WSRM) enables the allocation of resources, including processor and memory
resources, among multiple applications based on business priorities. You can set the CPU and
memory allocation policies on applications. Furthermore, Windows System Resource Manager
(WSRM) does not manage address windowing extensions (AWE) memory. It also does not
manage large page memory, locked memory, or OS pool memory.
Reference: Windows System Resource Manager Fast Facts
http://www.microsoft.com/windowsserver2003/techinfo/overview/wsrmfastfacts.mspx


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Sunday, April 7, 2013

Amazon's biggest competitor in the cloud: Salesforce.com?

Amazon's biggest competitor in the cloud: Salesforce.com?
Amazon and Salesforce are each pioneering companies in cloud computing, but are they competitors?

Who is Amazon's biggest competitor in the cloud?
The go-to answer for many may be companies like Rackspace with its OpenStack platform, perhaps Google with its Compute Engine, Microsoft Azure, VMware or one of the up-and-coming cloud computing companies like Joyent.

But Mikhail Malamud, founder of cloud consultancy startup CloudAware, says another cloud company could pose the biggest challenge to Amazon's cloud plans: Salesforce.com.

These two companies, Amazon Web Services and Salesforce.com, are two of the leading cloud providers in their respective markets of infrastructure as a service (IaaS) for AWS and software as a service (SaaS) for Salesforce.com. But Malamud believes there is one reason why Salesforce.com could be a formidable foe for Amazon in the cloud moving forward: data.

Salesforce.com's data stash
"Data is the kingmaker in the cloud," says Malamud, whose firm, CloudAware, provides a platform to access AWS resources.

Salesforce.com has an enormous cache of customer data, and not just any data, but some of enterprises' most valuable data -- customer information. Salesforce.com has data about who its users' customers are, what interactions they have with those customers, and increasingly it's been attempting to collect even more data, from human resource management to social data.

And Salesforce is building an ecosystem of products and services around that data. While the company may be best known as a SaaS-based customer relationship management (CRM) application, it also has a robust platform that allows customers to build new applications on its cloud.

Force.com and Heroku, the latter of which Salesforce acquired in 2010, are platform as a service (PaaS) tools allowing customers to leverage CRM data already in Salesforce's cloud and build related applications that are customized to individual users' needs. It's where Malamud built his company's app. A Salesforce CRM customer, for example, could build an application on Force.com that integrates with the CRM application to analyze the sales data. And Malamud says every new application that's built in Salesforce.com's environment is one less app that's running in Amazon's cloud.

Amazon: We've got data too
Amazon is responding in turn, though. In the past year AWS has made a concerted effort to manage more of its customers' data. Announcements like Red Shift -- the company's headline announcement at its first-annual users conference, named re: Invent -- is a new data warehousing service, meant to be a low-cost alternative to expensive on-premises database storage systems. Amazon Glacier is a "cold storage" service for storing a company's long-term data, while Data Pipeline is a relatively new service that makes it easier to transfer all that data between various applications within Amazon's cloud. "They're clearly trying to get as much of your data as possible," Malamud says.

Malamud says Salesforce will be the place where next-generation apps will be built, providing a legitimate threat to Amazon moving forward.
"It's a legitimate theory, but it's more of a longer term play," says David Vellante, chief analyst at research firm The Wikibon Project, about the Salesforce.com-Amazon rivalry. The two companies are not really direct competitors right now, he says. They're both cloud-based, but AWS at its core is about providing fast, easy and cheap access to virtual machines, storage and hosted applications in its IaaS cloud. Salesforce.com is a SaaS that is attempting to build up its accompanying PaaS.

Amazon's bigger near-term competitors are the growing cavalry of IaaS providers looking to steal business from the company, he says. Google, Microsoft and Rackspace (with its OpenStack platform), as well as VMware, HP, Dell, Joyent, Terremark and Savvis, are just some of the whole range of IaaS providers looking to bite into Amazon's market share that pose a more immediate threat to AWS.

Robert Mahowald, research vice president at IDC who leads the software as a service (SaaS) and cloud services practice, agrees with Vellante. "It's not necessarily where the companies are today, but it's certainly an aspiration of Salesforce," he says. But he's also on board with Malamud's core premise of "follow the data."

Applications that run in the cloud are fundamentally more important than the infrastructure they run on, so in that sense Salesforce has an advantage in being able to offer customers products, services and platforms that leverage data already in its cloud.

But AWS is a heavy-hitter in the cloud, too. Through partnerships with big enterprise software giants like SAP, Oracle and Microsoft, AWS allows customers to migrate their existing enterprise software licenses to Amazon's cloud and let AWS worry about all the underlying infrastructure.

Salesforce.com has a different business model: The company isn't pushing customers to migrate their SAP, Oracle and Microsoft apps into its cloud; they want customers to be all-in with its own cloud. So far, the company has done an extraordinary job capturing the CRM market, but existing business apps aren't being migrated into Salesforce's cloud.

To Mahowald, that means the Amazon vs. Salesforce debate comes down to a new vs. existing apps debate. Amazon has everything in place to give customers the opportunity to outsource their packaged software onto its cloud, something enterprises are becoming more and more comfortable with. Salesforce wants to be the place where the enterprises' next-generation business apps are built and stored.

The problem for AWS is that there are increasingly more and more competitors offering similar IaaS services. To date, Amazon has simply done it better than its competitors, Vellante says -- it out-innovates competitors, has a broader range of services and continually lowers its prices. It's tough for competitors to keep up, but a crop of providers are trying.

Some providers are carving out niches in vertical markets, offering healthcare-, government- or financial services-focused clouds, for example. Others are banking on the hybrid cloud -- which combines both on-premises and public cloud resources -- as being the future the industry. VMware, sensing an opportunity in the market, recently announced plans to create a hybrid cloud offering.

Salesforce isn't competing with those offerings, though, Vellante says. Salesforce has found a niche in its ecosystem of customers and is nurturing and growing it. But Salesforce.com is not the be all and end all of cloud service providers now or into the future. "If you're running a big data app and you need a 10-node cluster spun up today to host your analytics app, you're not going to Salesforce," Vellante says. "You're going to Amazon or another IaaS." It's a different play for each of the providers, which is why Vellante says both of these companies -- AWS and Salesforce.com -- will be around for a long time, and they both likely will make a lot of money in the cloud.


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