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Public Cloud Core Banking: Vendors Hype or Short term Reality?

Many large banks are IBM Mainframes users. They use mainframes for decades. They use other platforms as well, but their Core Banking systems are deployed on Mainframes. Recently leading Cloud Computing vendors such as Amazon , Microsoft and Google approached large banks in order to start migration of systems to their Public Clouds.  I looked for evidence supporting the notion that Banks are transforming from Mainframes to Public Clouds. I found no evidence. I am not the one to be blamed for not finding any significant evidence, because there is no evidence supporting the notion cited above.  Banks are using Public Clouds but... Like many other organizations, banks are using Public Clouds applications. However, they do not use it for Core Banking systems deployment. They use Public Clouds for applications which are less integrated with the Core Banking systems. If they will not use Public Clouds for Core Systems, IBM Mainframes will be used for many years. Public...

The Next Generation of Private Clouds

The Public Cloud is a promise. A promise for a new model without an Information Technology department.  Unlike the Public Cloud, the Private Cloud is nothing to write home about. Utility Computing disguised in modern and attractive name.  Reality is not as simple as described in the paragraphs above.  If you read the article Tectonic shift as Public Cloud giants acknowledge the private deployment options , you will discover that even Amazon and Google admit that Public Cloud is not a magical solution for all problems. There is a necessity for Private Clouds. There are systems for which Public Cloud is not adequate.  Private Cloud It is relatively easy to define Public Cloud. There are various different definitions of Private Cloud.  The main definitions could be categorized as follows: 1. Cloud which is located within the Enterprise boundaries.  Utility Computing may fit to this definition. If the organization provides Information Technol...

Vendors Survival: Nokia the new DEC

When I begun posting about Vendors Survival, I had to explain why I doubt that even the strongest vendors, e.g. Microsoft , Apple , Google , will surely survive for at least 10 years. The easiest way to explain it was by Digital Equipment Corporation (DEC) ill fated history. The IT leaders of the 80ths were IBM , HP and DEC. However, they had to adapt to a new model inspired by Microsoft and other Software vendors. The Hardware Centric Model was changed to Software Centric Model. IBM, HP and DEC could no longer rely on Hardware sells high profit margins and Software as Hardware complementary low priced product line.  IBM and HP adapted successfully. DEC failed. DEC Strategy relied on Alpha chips based Servers . After unsuccessful quarters DEC sold product lines (e.g. System Management software to CA , Communication Hardware to Cabletron ).   Finally, DEC sold their Alpha chips patents to Intel . I immediately notified my DEC based clients that they c...

Will Microsoft Survive until 2021? - Revisited

A year ago I publishes a post titled: Will Microsoft Survive Until 2021? . According to the post, the probability in 2011, that Microsoft will survive until 2021, was lower than the probability assigned in previous post written in 2008 , for its survival  for ten years, i.e. until 2018. Some problems mentioned in the 2011 post were its position in the Smart Phone market and it Windows Operating System .  Recently, Microsoft reported Loss after a Write-Down .  The Loss was attributed to its ill-fated acquisition of an Online Advertising company. However, Microsoft's Windows business revenues f ell 13% in the fourth fiscal quarter ended June 30th.   The Bottom Line: Although the propability that Microsoft will survive for 10 years is still high, this probability in 2012 is lower than it was in 2011.