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lesjokolat

06/07/10 12:16 AM

#28177 RE: Tenacious #28173

I agree the cloud concept is good in principle but even if they made a a great private cloud system there is always the weak link and that is the end user(LCRes clients) internet lines, it is often a problem to get different sites to get the decent or matching lines needed and on a large scale basis it involves a huge amount of expensive co-ordination.

If LCRE were my company, i would try to make it a turn key solution for a site and allow eventually for a turn key solution/client managable solution able to work with a cloud if desired.

Get the solution working well first then worry about the advantage of clouds or multi server solutions.
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SMaturin

06/07/10 12:19 AM

#28178 RE: Tenacious #28173

Yes, the private cloud idea was what I meant.

I do not expect it to be at the top of LCRE's plans at this stage, but it may be a possibility down the road.

There are two ways they could do this, as I see it. One, they could simply lease their software and let companies run it on their own servers with an appropriate pricing structure. Software support, but not hardware. The corporation's private cloud using LCRE software.

If LCRE grew big enough to own and run its own server farms, the economy of scale would lend itself to providing services for large corporations at unit costs much less than the corp could manage by hiring its own programmers and IT staff and buying its own hardware. This is the beauty of the SaaS/IaaS model and the future of cloud services.

Again, that is not the near-term picture for LCRE, but I wonder if that is something they would wish to do later as they grow. Or do you suppose Jim Morris will sell the company to somebody else who would do this, once he has built it into a successful and valuable company that one of the Big Caps would want to own?

I think the model of IaaS services like this is inevitable. The economy of scale issues will drive competition in this area such that many companies will find it cost effective to outsource most of their IT needs to cloud providers.