Software is officially dead: the real strength behind internet applications
Thursday, January 31st, 2008Back in the early days of large-scale computing, Sun founder John Gage first uttered the immortal phrase, “The network is the computer.” This statement has become more and more true over time, as increasingly sophisticated grids have proven to be more powerful and useful than any one computer could be. The power of the collective is starting to trickle down from the giants like Sun and Google to the little guys. This is making it possible for businesses of all sizes to create, store, and deliver quality web-based applications to users without the large-scale investment in computing grids that would ordinarily be required.
Part of this change has come about due to the proliferation of Platform as a Service (Paas) companies like Force.com (a service of Salesforce.com). Force.com offers customers the tools they need to create proprietary web-based applications that can replace the software they would normally use. The platform they provide is specifically geared towards businesses who rely on enterprise tools like those of software vendors Oracle, Microsoft, and SAP. IT departments, instead of spending valuable time on disastrous software upgrades and user training, could actually add value to the company through innovating applications that require only an internet browser to access. This would also allow designers the ability to create a better user overall user experience which is typically impossible since software tends “lock down” the user experience and allows minimal customization. No more installations, no more licensing fees, just a quick and cost-effective way to build customized applications for businesses.
Some industry experts estimate that this PaaS model could reduce the costs associated with traditional software by as much as 75%. No longer would an online retailer need to build or buy an e-commerce software package. They could use the foundation created by Force.com to generate a web-based application specific to their needs. Force.com offers their own development services to businesses without experts on hand, but they also boast an AppExchange section which allows users to share in the tools created by other users for subscription fees. Open source software is also being applied in this model, allowing businesses to combine tools like OpenOffice (an office suite to rival Microsoft Office) and customer service applications to meet the needs of multiple departments.
While the market for web-based applications continues to grow (and software dies a slow, agonizing death), big players in the computer infrastructure world are stepping up to fill a gap in the system. Back in 2006, Sun launched what they called “the world’s first on demand supercomputer,” giving smaller businesses a way to provide applications without the expense of developing their own server farms. The infrastructure was available to any one with a browser and a credit card. As Sun’s official blogger Jonathan Schwartz put it, “We believe the simplicity, accessibility and affordability of this service changes the face of computing for all organizations, large and small, public or private.” This initiative, and others like it, removed the last barrier to the triumph of web-based applications over software.
Now, e-commerce giant Amazon is getting in on the game, with their Web Services division offering server space and computing capacity on a subscription basis. Amazon is courting developers in the hopes of renting out their computing cloud during the off-season. The company’s infrastructure sees the heaviest use in the fourth quarter holiday season, and they’re generating extra (albeit small for them) revenue by hosting applications for developers. They’re specifically reaching out to companies who develop applications for Facebook. In a recent press release, Amazon Web Services details the benefits of their model: “Using these infrastructure web services, your Facebook application is able to reach “web-scale” by scaling up and down seamlessly as demand dictates — with pay-as-you-go pricing and no upfront costs.” In other words, if it’s a hit you pay more, but if it’s a flop you don’t suffer. This allows developers at small companies to reap the rewards of popular applications without taking the risk of buying their own computer infrastructure.
Amazon’s growing list of customers for their cloud rental service includes SanDisk and the New York Times, though it appeals mostly to smaller fish at the moment. They’re up 135,000 customers since 2005, and as their service becomes more reliable, the list will continue to grow. The pay-as-you-go model frees up businesses with big ideas but without bid budgets, and this trend is a perfect parallel to the Platform as a Service industry. Not only will independent or small-scale developers have access to the best tools for building cheap, quality applications, but they’ll also have the ability to store and run their ideas with the big boys. This means reliable, cost-effective, and customized applications for businesses everywhere.
It’s hard to spot a pitfall in these growing trends, and it seems fortuitous that they are emerging and growing together. The only potential downside is for major software outfits like Microsoft, Oracle, or Adobe. My guess is that even these traditionalists will get in on the game, producing more and more tools that can be accessed through the web on a subscription basis. As software breathes its last, we’ll see a major shift in the way programs are developed, stored, delivered, and accessed by end users.




