Setting back network-based computing one return at a time

There are many advantages to running applications on a network, like not having to worry about an operating system, eliminating your local host footprint, etc. But there's a big unspoken but widely understood issue: it's trust. You need to be able to trust that things will work just as well on the network as they would on your local server. You hand-over control and therefore accept some risk in exchange for the benefits. The overall function should net benefits to the customer.

Back in the early days of 'cloud computing' circa 1999 when we were running client-server apps like Exchange straight over public IP, customers were taking trade-offs in performance but conscientious ASPs more than delivered in terms of cost savings, availability and reliability. The last thing you wanted to do was make things on balance worse for the customer. And the ABSOLUTELY last thing you wanted to do was lose someones data even if it was 'just email'.

Well, fast foward a decade later. Here's a $3 billion so called leader in personal finance software, Intuit, with thier leading tax prep solution, Turbotax, trying to remain relevant within a growing market of online personal finance and related alternatives such as mint.com, wesabe.com , and others, many founded by Intuit alumni. These startups get that the key to the battle is in building trust. Well, let me tell you, if you are trying to build trust in an online business, you don't do it by losing someone's data.

I just got off a call with the Turbotax support line, because the help page directions I had been following to access a previous years return didn't seem to work. After spending 30 minutes waiting for an answer (this is actually the average hold time) and another 20+ on the phone with support, I'm told that the 2007 to 2008 conversion I had attempted, per the online help instructions, can only work once. If it didn't work the first time then your tax data has been deleted.

Never in my years of experience with various forms of online-based services would I ever have expected to encounter a system that would, by default, delete customer data. I wouldn't write an MRD for a program like that. I had never worked with an engineer that would code something like that. Nor do I recall a sys admin who would ever manage an environment where you couldn't recover data even if the program couldn't access it.

Not only is Intuit showing incompetance in application development, but by losing customer data they risk pulling down the entire industry. Whether you're doing online storage, CRM, ERP or security across the public cloud or within a private cloud, we absolutely must be stewards of the customer's data and ultimately thier trust. We strive to bring net benefits. But at the very least, even if you as a company are incapable of evolving yourself, even if you can't deliver customer value within an online model, then for the sake of those companies around you who will make it, please at least 'do no harm' and don't drag down the industry around you.

Technology Value vs. Doom and Gloom

Granted times are tough. But it’s gotten to the point where economic fear-mongering is beyond a popular political tool and has become a competitive weapon. It would be laughable when math-challenged vendors spread rumors of layoffs that exceed the competitor’s headcount. But layoffs, furloughs and slowdowns are not a laughing matter.

Luckily some companies remain focused on delivering valuable technology, esp. where it’s solving important problems, like how the new KMIP encryption standard will make organizational data more secure. Or they're innovating to reduce data center complexity, lower costs or save the environment. Some of us will remain focused on delivering new benefits and savings through technology -- hopefully customers are finding this helpful and maybe even hopeful.

Fabric Applications = Private Cloud computing

I've never been one to add to what is already some serious vendor over-hype, e.g. 'Cloud Computing', but then again I'm not one to rant against something either (regardless of how funny that can be). I'm hearing that some customers find the concept helpful. Cool. I know I find it helpful to review why these things have value to customers.

In my day job, we've been delivering what we call Fabric Applications for many years. In concept Fabric Applications are similar to what is being called a Private Cloud, especially as it relates to fabric apps such as Storage Virtualization. Our company's focus up to this point has been specific to Storage networks (vs. LANs), though this will change with FCoE and CEE.

And I had been wondering if given the current economy, or trends in vendor consolidation, or a new administration, or Jessica Simpon's weight challenges, etc... if customers' needs were really changing with regard to Fabric Apps and this whole cloud computing thing. As you may recall, a key driver to network-resident computing is the value it brings to managing resources from many different vendors. As it turns out, this is still a growing need for companies.

Data recently released by a leading IT research firm shows that more that 80% of Enterprises are working with 2 or more storage vendors, and more than 25% of companies are now working with 6-10 different vendors - an increase over last year! In addition, enterprises that have products for Storage Virtualization are continuing to expand their use. The hype around ‘cloud computing’ and ‘private clouds’ is apparently there because there's value in it: companies want best-of-breed solutions along with management flexibility. And Fabric Apps or Private Clouds or Enterprise Clouds or insert-your-favorite-term-here, are the way to achieve it.