With a heterogeneous cloud computing infrastructure, things will get more simplified and in days to come cost-effective in every sense
4 min read
Opinions expressed by Entrepreneur contributors are their own.
You’re reading Entrepreneur India, an international franchise of Entrepreneur Media.
Necessity is the mother of invention. For any organization, once it reaches a certain level of growth and success, then comes a stagnation point where it has to restructure or bring a disruptive change to stay ahead of its competitors. A technology-driven enterprise needs to invest in innovation, research and development. It’s hard to imagine consistent growth without being innovative. The key to staying relevant is to embrace cutting-edge technological solutions and keep launching new versions of products that help in the sustainability of the venture.
One such solution is the decentralized heterogeneous cloud platform that aims to resolve the major shortcomings existing in the trading world of computing. Using blockchain technology it will bring trust, transparency between clients and providers as well as peer-to-peer contracts and transactions.
Cost –Effective Cloud Platform for End –Users:
With more and more IT enterprises growing at a phenomenal pace, the need for cost-effective cloud computing can’t be over-emphasized. For consumers demanding complex solutions at large, there is no robust mechanism to address the grievances.
However, on a brighter note, the growing demand for cloud services is yet to reach its break-even point. Cloud computing has immense scope to harness the potential of blockchain in order to create a smarter workforce.
As compared to the estimated 32% EBITDA of Amazon Web Services, the cost-savings is a crucial factor for the clients. This can be achieved by market pricing based on a liquid provider/client market and by very low 2.5-10% fees on resource bookings, compared to the estimated 32% EBITDA of AWS. With such a close margin (i.e. 2.5-10%), the solution should be very competitive with a credit card, PayPal, and bank transfer fees. But to achieve this, developing a cryptocurrency may prove a viable and cost-effective solution. .
Easy Access to Global Market:
At present what’s missing is a comprehensive solution, which could help individuals, hosting providers and companies owning under-utilized data centres to get worldwide reach within minutes by connecting to a decentralized network, renting their available server resources to a broader audience, and earning money while supporting the open internet.
With the help of efficient networking individuals and small businesses, working on blockchain and proof of beneficial work algorithms will eventually diminish the existing monopoly of major cloud players.
Lucrative Business Opportunities for SME:
With the emergence of the blockchain, there is plenty of scope for amplification of business for new entrants and small enterprises. Midsize organizations have made significant strides by inculcating the nuances and the integrities of new emerging technologies. Considering the market sentiments, there is no dearth of ample opportunities for SME’s to thrive since they are quick to embrace cutting-edge technological training. Now, it’s easy to install software for automatic resource allocation and automatic payouts.
Large organizations like AWS that dominate the cloud computing space are entirely based on a homogeneous network. Their own ‘BIG’ servers that are basically the same and clients pay the same price. This keeps pricing simple for the providers but doesn’t give clients any available payment choices.
On the other hand, with a heterogeneous cloud computing infrastructure, things will get more simplified in days to come. The blockchain protocols govern the network, align provider incentives with computing resource quality giving choices and transparency to the cloud client market. This will bring great elements of modularity, agility, speed leading to better efficiency and output.
Going by the figures, the current market capitalization of cloud and hosting services is about $250 billion and is speculated to increase twofold by 2020.
The Need of The Hour – Optimize Transaction Speed With Costs:
When it comes to a time taken for transactions, it can sometimes take an hour to transfer bitcoins from one account (wallet) to another. While in the case of transaction costs – average bitcoin transaction fees can be over $10 and may still be rising – this makes bitcoin problematic for microtransactions. With context to capacity, bitcoin can only handle about 3-4 transactions per second. When compared to Visa, which can process up to 24000 transactions per second, there is still a lot of room for improvement.
The original idea of bitcoin as a decentralized currency is now endangered by large mining pools who may have power over bitcoin decisions and can affect the future development of the network as a whole.
Today, to process the aforementioned 3-4 transactions per second, the bitcoin network often requires large specialized computer farms which can consume significant energy. There are too many shortcomings to make it viable as an everyday transaction platform.