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James Urquhart and I recorded show #7 of Overcast, our podcast series on cloud computing. It's up and available here for your listening pleasure.In this episode we have a discussion with Javier Soltero, CEO of Hyperic. Reposting the show notes:Show...

"aaS Providers Shifting to Commercial VMs. IaaS (infrastructure as a service) providers have focused on open source and internal technologies to deliver solutions at the lowest possible cost. But that's changing. In the past year, there's been a rapidly growing trend for IaaS providers to add support for major commercial VM formats - especially VMware, but also Hyper-V and XenServer. The reason? To create an easy on-ramp for enterprises. As enterprises virtualize (and in many cases, build private clouds), the IaaS providers know that they need to make interoperability, hybrid, overdrafting, migration as easy as possible. The question is whether that will require commercial offerings (such as VMware's vCloud Datacenter Services, or Microsoft Dynamic Datacenter Alliance), or if conversion tools will be good enough. I tend to think that service providers better make the off-premises experience as identical to the on-premises experience as possible - and I'm not sure conversion will get them there."

Service providers need to realize that the Cloud business is different than their earlier offerings - traditional hardware or solution and infrastructure managed services. They must transform quickly and direct their focus on modern applications, platform-as-a-service (PaaS), or containers and PaaS rather than just on infrastructure management. The only way forward is to incorporate agility in operations, leverage new-age toolset, establish governance, increase optimization, and invest in security as an integral part of managed services.