Opportunities for Early Stage Enterprise IT ISVs in the Cloud Trend

The whole point of our present series on cloud computing and its likely impact on enterprise organizations in the public and private sectors is that there is a very strong likelihood that more organizations will migrate from on premise systems to cloud offers. There are areas of opportunity in this likely eventuality where early stage ISVs can benefit.

As we noted in a prior post to this blog, cloud security concerns remain a major impediment to wider option of cloud computing options by enterprise organizations. We maintain a highly skeptical opinion of the likelihood that comprehensive solutions to this need will emerge, despite a strong possibility that the United States Defense Department, together with the United States Army and other forces, will step in to safeguard United States networks from cyber attacks.

In fact, there are a number of vulnerabilities inherent to Ethernet networking that are not likely to be transformed any time soon. Broadly speaking, these vulnerabilities revolve around a technical fact — an Ethernet data communications model does not include bi directional authentication. In fact, Ethernet data communications system are packet based. Successful transmission of data requires that 8 packets be exchanged between two data end points, no more no less. In fact, this exercise is susceptible to spoofing, where a “man in the middle” can substitute legitimate packets for malicious packets and, thereby, successfully compromise a communication session. This type of compromise can craft a trap door from a data session which a hacker can exploit to gain uninvited entry to an entire computing system, itself.

Early stage ISVs with security systems for Ethernet networks and the browser based communications that run on top of these networks can be highly useful to enterprise organizations. Admittedly, security systems for Ethernet data communications are nothing new, but we think market appetite for these solutions will more than justify continued effort.

Another promising area for early stage ISVs targeting the cloud trend for enterprise organizations is software tools development. We think it is likely that enterprise organizations will require a substantial level of customization from cloud systems. Cloud services like Microsoft Azure, Amazon Web Services, Google’s App Engine, and their competitors are targeting this need. But there is still room for specific tools that enterprise organizations can use to craft custom solutions with the flexible computing capacity delivered by these systems.

Dev/Ops, which we have now come to understand is the application of software development to systems operation and administration (virtual servers, networks, etc), constitutes a wide open plateau where business scale is not as important to enterprise customers as is the promise of technological innovation inherent to product offers.

In this next post to this blog we will look at how very early stage ISVs can exploit BYOD to carve a niche out of the cloud trend.

© IMB Enterprises, Inc. & Ira Michael Blonder, 2012 All Rights Reserved

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