Welcome!

Recurring Revenue Authors: Elizabeth White, Yeshim Deniz, Xenia von Wedel, Liz McMillan, Carmen Gonzalez

Related Topics: @CloudExpo, Microservices Expo

@CloudExpo: Blog Post

This Magic Moment

They do not come often; make sure you are prepared to take advantage of it….

This November, I am presenting at SYS-CON's 4th International Cloud Computing Conference & Expo in Santa Clara, CA. I welcome any opportunity to speak about my favorite subject: cloud storage, and how the cloud storage segment is providing a viable roadmap for how to create a profitable cloud computing industry.

One year ago, the Mezeo Software team was finalizing plans to emerge from stealth mode. Since that time, the cloud storage market has undergone some significant changes and advancements. We may not have crossed Moore’s proverbial chasm just yet, but the energy in the space is tangible. As an industry, we are very close to a tipping point.

In my talk at Cloud Computing Expo, “The Profit Model for Cloud Computing,” I will discuss how the cloud storage space has quickly evolved. It is truly a “magic moment” situation for those who have historically been responsible for providing IT infrastructure. In fact, the very foundation of that market is shifting before our eyes due to the advent of cloud computing, and other factors including economic changes and technology advancements.

What used to be known as the “Web hosting industry” is now better described as the “IT service provider space.” The old label is just too limiting. It is not just about hosting Web sites anymore. New applications, requiring compute and storage clouds, are hitting the market, including new Web-based applications. To satisfy these evolving needs, cloud storage solutions are now a necessary element of the IT service provider’s infrastructure.

From an IT service provider’s perspective, daydreaming about the glorious profits associated with cloud computing, including cloud storage, may be nice, but the truth is that if they don’t adapt, they will go out of business. Period.

Thankfully, the discussion doesn’t end there, because that would be a pretty short and depressing presentation!

So what are the emerging infrastructure needs and expectations? I will cover the basic cloud computing infrastructure and cloud storage and explain how they work together to deliver a cost effective solution that allows for the following:

  • A convergence of the mutual interests and capabilities of the enterprise and service providers.
  • Scalability in terms of unique moments of demand such as “the Oprah effect.”
  • A pay-for-use model that allows access to capacity on an as-needed basis at any given time versus always paying for what’s provisioned to meet maximum demand. What a waste!
  • Op-ex versus cap-ex.  Driving down infrastructure costs by using cloud computing images.


I will also discuss the expectations of Web developers who are creating the new applications that are reshaping the industry. Simply put, they expect to access a robust, programmable storage with advanced services via REST APIs. Cloud storage provides them unlimited capacity and extraordinary parallel access to match the scalability of performance that their CCIs need and it does this at a very low, compelling price point.

As that world busily gets fired up, it will create a number of revenue stream and profit opportunities. And that’s where it gets really interesting. You see, people will look for these services via a trusted service provider. Small businesses will pay. Big businesses will pay to develop internal clouds and you and your family will pay to preserve, protect and share your data.

My discussion will highlight the following:

  1. The new world that’s coming for the service provider.
  2. New revenue streams and profit opportunities.
  3. What you should be doing now to prepare for all of this.
  4. How the enterprise can also benefit through cost reductions, new opportunities for collaboration and opportunities to enhance profit.

I will discuss the five revenue stream opportunities and the profit consequences associated with each. We will also drill down into the unusual opportunities that the enterprise can take advantage of, including greater collaboration, cost efficiencies and profit enhancement.  Here is a hint: it goes far beyond just gigabytes of storage per month.

I hope you’ll join me at SYS-CON's 4th International Cloud Computing Expo. My session, “The Profit Model for Cloud Computing,” is scheduled for 3:25 p.m. on Monday, November 2nd. The conference runs November 2-4 at Santa Clara Convention Center. More information is available at http://cloudcomputingexpo.com/.

More Stories By Steve Lesem

Steve Lesem is President/CEO of Mezeo Software. Previously, He was Senior Vice President and Chief Marketing Officer of the managed hosting provider VeriCenter. He has also served in leadership positions at SafeNet, BMC Software and IBM. Steve holds a Bachelor of Science from the University of Texas at Austin. He is the primary author of the Cloud Storage Strategy Blog (www.cloudstoragestrategy.com), which frequently sees posts picked up by publications in the IT services and Web hosting spaces.

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


IoT & Smart Cities Stories
Chris Matthieu is the President & CEO of Computes, inc. He brings 30 years of experience in development and launches of disruptive technologies to create new market opportunities as well as enhance enterprise product portfolios with emerging technologies. His most recent venture was Octoblu, a cross-protocol Internet of Things (IoT) mesh network platform, acquired by Citrix. Prior to co-founding Octoblu, Chris was founder of Nodester, an open-source Node.JS PaaS which was acquired by AppFog and ...
The deluge of IoT sensor data collected from connected devices and the powerful AI required to make that data actionable are giving rise to a hybrid ecosystem in which cloud, on-prem and edge processes become interweaved. Attendees will learn how emerging composable infrastructure solutions deliver the adaptive architecture needed to manage this new data reality. Machine learning algorithms can better anticipate data storms and automate resources to support surges, including fully scalable GPU-c...
Predicting the future has never been more challenging - not because of the lack of data but because of the flood of ungoverned and risk laden information. Microsoft states that 2.5 exabytes of data are created every day. Expectations and reliance on data are being pushed to the limits, as demands around hybrid options continue to grow.
JETRO showcased Japan Digital Transformation Pavilion at SYS-CON's 21st International Cloud Expo® at the Santa Clara Convention Center in Santa Clara, CA. The Japan External Trade Organization (JETRO) is a non-profit organization that provides business support services to companies expanding to Japan. With the support of JETRO's dedicated staff, clients can incorporate their business; receive visa, immigration, and HR support; find dedicated office space; identify local government subsidies; get...
René Bostic is the Technical VP of the IBM Cloud Unit in North America. Enjoying her career with IBM during the modern millennial technological era, she is an expert in cloud computing, DevOps and emerging cloud technologies such as Blockchain. Her strengths and core competencies include a proven record of accomplishments in consensus building at all levels to assess, plan, and implement enterprise and cloud computing solutions. René is a member of the Society of Women Engineers (SWE) and a m...
With 10 simultaneous tracks, keynotes, general sessions and targeted breakout classes, @CloudEXPO and DXWorldEXPO are two of the most important technology events of the year. Since its launch over eight years ago, @CloudEXPO and DXWorldEXPO have presented a rock star faculty as well as showcased hundreds of sponsors and exhibitors! In this blog post, we provide 7 tips on how, as part of our world-class faculty, you can deliver one of the most popular sessions at our events. But before reading...
If a machine can invent, does this mean the end of the patent system as we know it? The patent system, both in the US and Europe, allows companies to protect their inventions and helps foster innovation. However, Artificial Intelligence (AI) could be set to disrupt the patent system as we know it. This talk will examine how AI may change the patent landscape in the years to come. Furthermore, ways in which companies can best protect their AI related inventions will be examined from both a US and...
The challenges of aggregating data from consumer-oriented devices, such as wearable technologies and smart thermostats, are fairly well-understood. However, there are a new set of challenges for IoT devices that generate megabytes or gigabytes of data per second. Certainly, the infrastructure will have to change, as those volumes of data will likely overwhelm the available bandwidth for aggregating the data into a central repository. Ochandarena discusses a whole new way to think about your next...
Charles Araujo is an industry analyst, internationally recognized authority on the Digital Enterprise and author of The Quantum Age of IT: Why Everything You Know About IT is About to Change. As Principal Analyst with Intellyx, he writes, speaks and advises organizations on how to navigate through this time of disruption. He is also the founder of The Institute for Digital Transformation and a sought after keynote speaker. He has been a regular contributor to both InformationWeek and CIO Insight...
Bill Schmarzo, Tech Chair of "Big Data | Analytics" of upcoming CloudEXPO | DXWorldEXPO New York (November 12-13, 2018, New York City) today announced the outline and schedule of the track. "The track has been designed in experience/degree order," said Schmarzo. "So, that folks who attend the entire track can leave the conference with some of the skills necessary to get their work done when they get back to their offices. It actually ties back to some work that I'm doing at the University of ...