Johnmwillis: Hello, Botchagalupe, its good to have you back again.

Botchagalupe: Yea, yeah, sure, sure.

Johnmwillis: What have you been up to?

Botchagalupe: Oh, the usual. I bowl. Drive around. The occasional acid flashback.

Johnmwillis: The last time you were here you were talking about Botchanomics.

Botchagalupe: Nah, I am getting a little tired of the whole IT thing. These days I am just throwing rocks.

Johnmwillis: Throwing Rocks?

Botchagalupe: Your obviously not a bowler.

Johnmwillis: Surely you have something to say about all this “Cloud” talk that is going on.

Botchagalupe: Yea, yeah, sure, sure, Clouds, yea, yea.

Johnmwillis: Please do tell.

Botchagalupe: Dude, Nick Carr has brain washed us all. He has everyone thinking that there has to be some kind of big switch that has to occur when it comes to the cloud. In the enterprise the debate always centers around will the enterprise switch to the cloud or won’t they. Carr’s got everyone thinking it has to be an all or nothing. I prefer to call it the “Dimmer Switch” when it comes to the enterprise.

Johnmwillis: Hey come on, you got that “Dimmer Switch” from my Cloud Cafe Podcast with Micheal Crandall the CEO of Rightscale.

Botchagalupe: Dude whatever, the point is that the enterprise will migrate into the cloud the same way they have always migrated into new technologies. They will use applications on the edge and once they get the warm on fuzzy on those they will move up the stack. I remember working with VMWare back in 1998 and now 10 years later it’s pervasive in the enterprise. It took a lot of trail and error and guerrilla projects to get VMWare accepted in the enterprise.

Johnmwillis: There has been a lot of discussion about security concerns and how the enterprise might not be ready for the cloud. Are there enterprise companies using the cloud today?

Botchagalupe: There is an under the radar groundswell of enterprises activity in the cloud. Wall Street companies are begging for advice on which applications should go to the cloud first. GigiaSpaces, well positioned in the financial services space. has recently put their application on EC2. It’s only a matter of time before their customers start using the cloud.

Johnmwillis: Then why are we not hearing about the large enterprises in the cloud.

Botchagalupe: Dude, sometimes I wonder about you. Of course the large enterprise are not going to broadcast their use of the clouds. I have been at some large companies that won’t even let you take a picture of their building. Do you think they are going to give competitors and hackers the blue prints to where their applications are running. A lot of the vendors and customers that I have talked to tell me that the enterprise is definitely using the cloud.

Johnmwillis: What is the enterprise doing in the cloud?

Botchagalupe: In the enterprise there seems to be an “Ask-for-forgiveness-later” kind of attitude happening when it comes to emerging technologies. Administrators seem to be deciding to go outside the firewall and pull out their own credit cards when it comes to getting tasks done rather than waiting on internal resource provisioning.

Johnmwillis: Yea but can you give me an example.

Botchagalupe: The classic example of this kind of attitude, although not a cloud initiative, is the Blue Shirt Nation (BSN) dude Gary Koelling of Best Buy. Koeling was in advertising at Best Buy and was going to each local Best Buy store to talk to different sales associates to get their feedback. He and and BSN co-founder Steve Bendt pulled out thier own credit card and spent $100 for a domain outside of the firewall and installed Drupal. Now 20k sales associates latter Best Buy senior management is being heralded by the industry as social networking innovators.
Johnmwillis: How about a cloud example?

Botchagalupe: Probably the best known cloud story is of Derek Gottfrid of the NY Times. Gottfrid was tasked with converting 11 million old TIFF format scanned articles from 1851 to 1922. Gottfrid had already been playing outside the firewall with S3 and decided to pull out his own credit card and give it a crack on EC2. Two hundred and forty dollars latter he had converted over 4 Terabytes of TIFF files into PDFs. He wound up using 100 EC2 AMI instances to accomplish the task. I am guessing he decided $240 dollars of his own money was worth it versus the headaches he would have encountered trying to request inside the firewall provisioning.

Johnmwillis: That’s a great story; however, everyone has heard that one already. Who else?

Botchagalupe: I was recently told a story about a large Telco that plans on moving their customer support help desk software over to EC2 in order to provide better agility and delivery to their customers. Unfortunately I can’t disclose the customer nor the vendor. Let me just say it is one of the top customer support software products on the market and it is a huge US based Telco.

Johnmwillis: Gartner claims …

Botchagalupe: Dude Gartner? Gartner Smrtner, don’t let the analysts of the world fool you. Insurance companies, banks, and pharmaceuticals that traditionally have an insatiable appetite for computing resources are experimenting with the cloud. I have heard stories of EC2 being used for insurance claim analysis. Analytics, modeling and Monte Carlo simulations are natural fits for clouds.

Johnmwillis: Are there any other documented cases where the enterprise is using the cloud?

Botchagalupe: Yea, yeah, sure, sure. Rightscale is helping ESPN with the cloud. Joyent has helped Major League Baseball get on the cloud. Nasdaq is even using the cloud.

Johnmwillis: What about inside the firewall cloud activity or what some call a fog.

Botchagalupe: Dude, a Fog? Anyway, if you look at 3Tera they are leading the way for private clouds. One of their big customer’s is British Telecom. JP Rangaswami, the CIO of BT, has been a huge advocate of emerging and disruptive technologies. Rangaswami is a CIO who not only blogs, but he communicates on twitter and Facebook. How cool is that? More than 10k BT employees are on Facebook. Nearly 16k of BT employees use a Wiki. It;s no wonder that they would be using 3Tera as a private cloud.
Johnmwillis: Wow, Botchagalupe … again you never disappoint my friend.

Botchagalupe: Yea, yeah, sure, sure.

Johnmwillis: Hello, Botchagalupe, its good to have you back again.

Botchagalupe: Yea, yeah, sure, sure.

Johnmwillis: The last time we were able to catchup with you was back in August 2007, and we talked about ESM and SasS. Are you still working with any of that stuff?

Botchagalupe: Yea, yeah, sure, sure, still doing some of that stuff, but I’m really into Cloud stuff now.

Johnmwillis: Wow, that is really cool. I have done a few blog articles on Cloud stuff.

Botchagalupe: Yea, yeah, sure, sure, I have seen your posts, and they’re ok, I guess, but I think you are missing the point.

Johnmwillis: Oh really. What is the point I am missing?

Botchagalupe: Have you read Wikinomics?

Johnmwillis: Actually, I have. In fact, I recently got a signed copy from Don…

Botchagalupe: Yea, yeah, sure, sure, Don Tapcott, yeah yea. You still don’t get the point.

Johnmwillis: Ok, please enlighten me my friend.

Botchagalupe: Botchanomics dude, you either get it or you don’t. I am currently writing a new book called “The Big Galupe,” and in it I define two kinds of people. People who are Botchanomic and people who don’t. It’s that simple. This new WEB 2.x thing has built a battle-line, and everyone falls into one of two camps.

Johnmwillis: Could you be a little more specific and please don’t say “Yea, yeah, sure, sure”.

Botchagalupe: Yea, yea… I read Wikinomics on my plane ride back from Wuxi and it is all clear to me now.

Johnmwillis: Where the heck is Wuxi?

Botchagalupe: Dude, you call yourself an IT blogger and you have never heard of Wuxi. Wuxi Tai Hu New Town Science and Education Industrial Park in Wuxi, China. Come on man, Swimming pools and movie stars. This is where IBM is implementing one of the first large industrial clouds.

Johnmwillis: Oh.

Botchagalupe: Like I said you are either Botchanomic or you are not.

Johnmwillis: How does one become Botchanomic?

Botchagalupe: READ WIKINOMICS DUDE!

Johnmwillis: I did.

Botchagalupe: Then read it again and again until you get it.

Johnmwillis: So what you are saying is that either people understand the premise behind Wikinomics or they don’t.

Botchagalupe: Yeah, man. I mean look at this new world of collaboration. There are banks in China and India that are around 10 years old and they are shaking the foundations of things that men like JP Morgan created over 100 year ago. Some loan officer at Bank of America is probably baking an idea to start his own new bank right now and with a little bit of motivation he might be the next Mark Zuckerberg.
Johnmwillis: Who is Mark Zuckerberg?

Botchagalupe: Dude, you almost got me on that one. I know you know that Mark Zuckerberg is the 23-year-old founder of Facebook. Four years ago he decided to write an interface that took him two weeks to create and now he is hovering around the Forbes top 20 richest people in the world.

Johnmwillis: I actually think Facebook is a big waste of time.

Botchagalupe: That’s not the point… Following the bouncing ball John. Let me give you a simple example. If the non-Botchanomic manager starts a project, he or she puts a Microsoft project plan together. One of the first tasks the non-botchanomic manager creates is internal requisitions. First for personnel then hardware and software. The first thing a Botchanomic manager does is twitter or blog his or her ideas and wait for feedback. Then he or she starts a Google search for a services that might already exist.

My new book “The Big Galupe” is all about, if you are in the business of making pencils, then stay out of the business of ERP and ESM. Find a service that does it better faster and cheaper.

Johnmwillis: Yeah, yeah, sure, sure, but it’s not that easy for a brick-and-mortar enterprise to switch on a dime.

Botchagalupe: They better start learning how. There are guys who are not even born yet who will probably be their next competitor. Can you say Zuckerberg? In fact you wrote a blog article about iLike. This is a company that acquired 35k new users in a 24 hour period. If I were Jamie Dimon, CEO of JP Chase, I would be saying, “Why can’t I get 35k new customer in one day?”

The first wave of Botchanomics were things like massive collaboration of operating systems (Linux) and middle ware (MySql). A latter evolution gave us software as a service offerings (SaaS). However, now mass collaboration is hitting physical components. Do you know that China Motorcycles is causing a massive disruption in the Japanese motorcycle industry. People in California are buying $400 China based motorcycles on eBay. Guess what? There is no single company called China Motorcycles. Do you know how a new motorcycle brand gets created in China? A couple of investors meet for lunch and hash out a supply chain from hundreds of little companies that operate independently and operate as an internet based service. One service supplies the speedometer, another the engine, the other the frame. It’s a Motorcycle as a Service if you will (MaaS).

But It doesn’t stop there. There are open source based lending companies now. In fact, there are open and collaborative mutual funds getting started. Botchanomics is all about services baby, services. I was working with a professional services company just today and I was trying to help them startup a managed services offering. I was trying to explain Botchanomics to them. Basically I told them that Botchanomic aware customers will call you for the managed service before you call them. Or when you call them they will say, “I was looking for a service just like yours.” With the non-Botchonmics manager, you will have to spend hours and tons of follow-up calls to drive home the point, I told them. The non Botchanomic manager will want you to show him the ROI. My god, the Botchanomic manager already knows the ROI and is desperately seeking a service.

Johnmwillis: Wow, Botchagalupe … Botchanomics… you never disappoint my friend.

Botchagalupe: Yea, yeah, sure, sure.

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