As some of you may know, Dreamforce, Salesforce.com's big conference, is going on this week in San Francisco. This morning I received an amusing email from Chris Harrick, VP marketing at SugarCRM. I'm assuming this was sent out to everyone who signed up as press to the event.

Funny stuff.

The full email is below (I added the link to Benioff's book). In any case, I'll see you at Dreamforce!

Hey Geva,

Marc Benioff has a few zingers for SugarCRM in his new book Behind the Cloud:

“We knew that we had truly emerged as the market leader in the eyes of the industry when we arrived at Dreamforce 2006 to find that a handful of employees from a small CRM company had set up a mock protest outside the convention center. I’m not really sure what they were protesting, and it was a small, low-budget, and poorly executed rip-off of the types of tactics we had invented, but that wasn’t the point. The point was that we knew not to get ruffled.”  

                                                                        - Page 65 of “Behind the Cloud”

We are sorry we disappointed Marc during our previous visit to Dreamforce.

He even challenged us to “step up the innovation”:

“We did not want this company to get free PR on our coattails! Ignoring this escapade worked well. A blogger asked a Dreamforce attendee if she had seen what was going on outside when she arrived, and she replied that it must have been some kind of Salesforce.com stunt. (Note: if you are going to compete with someone at his or her own game, always remember to step up the innovatio

            - Page 65 of “Behind the Cloud” by Marc Benioff

If you insist Marc.

In continuing its long love affair with the industry’s most down-to-earth CEO and our commitment to staging “small, low-budget, and poorly executed rip-off [tactics]”, SugarCRM is currently distributing 1,000 copies of “Behind the Smokescreen: The Untold Story of How Salesforce.com Still Manages to Sell 1999 technology 10 years later” at Dreamforce today.

You can get your hard copy on the sidewalks outside Moscone (look for the people dressed as big books;).

Or you can read the eBook here: www.sugarcrm.com/smokescreen

With an endorsement from North Korean leader Kim Jong II (“A great guide for any entrepreneur, CEO, or Head of State looking to promote openness and freedom”), Behind the Smokescreen is a response to the magical Salesforce.com marketing that has transformed the company’s service from .com ASP to On-Demand SaaS to Cloud Computing without being apple to run its service on Amazon EC2 ,Microsoft Azure or other cloud services.

To celebrate the release of the book, SugarCRM is offering a free data migration for Salesforce.com users through the end of the year. Registrants will have a chance to win a free Motorola Droid.

SugarCRM hopes that the publication of this book “step[s] up the innovation”.

Please contact us if you would like more details. (510) 501-7333

Regards,

The Sugar Team

“There is a Japanese belief that business is temporal, whereas relationships are eternal. That’s true, One day you compete. The next day you partner. One day someone is your subordinate; the next day he or she may be your superior. At its finest, business is friendly competition, just like a game of tennis.”

                                                                                                       -  Page 39 of “Behind the Cloud”

And I grabbed this picture from the CRMOutsiders blog:

Cloud computing is having a profound effect on the software application lifecycle.

Almost every phase of creating and rolling out software applications is now addressed by a growing number of cloud services: from prototyping, to development, testing & QA, continuous integration  -- and all the way down to staging, deployment and post-production (monitoring and management). All of this can now be done in the cloud.

The vision is compelling. Imagine a world in which programmers can access their development environment from any computer without having to set up anything, collaborate with teams spread around the world, easily push the code to testing and QA, and then to production, where the apps will be automatically monitored and managed.

Although admittedly realizing this vision in full is several years away, we are already seeing many of the components emerging and gaining traction.

Here are some examples:

Development

Almost every area of the development phase is now supported by cloud services. Software-as-a-Service code repositories, version control and bug tracking services such as GitHub, Beanstalk (Subversion-as-a-service) and others are now commonly used in organizations large and small.

IDEs are another story. Until recently, IDEs were last bastion of local development work, but that seems to be changing (at least there are some early indications of it). A couple of example are the Mozilla Lab's Bespin project and HerokuGarden (which although it is no longer supported by Heroku, has a following and is featured in books such as O'Reilly's Learning Rails).

Another trend in IDEs are hybrids, which introduce the notion of developing on the local machine but deploying to the cloud from within the development environment, such as the g-Eclipse project and Aptana Cloud Connect.

A new tool that was recently released and caught my attention is Mike - a service for adding and managing builds in Java for continuous integration.

Testing and QA

This is a particularly active area in the cloud, and for good reason: testing seems to be one of the earliest applications for cloud computing. Some interesting companies in this space include Sauce Labs' Sauce On-Demand, which provides functional web testing in the cloud and is based on the popular open source framework Selenium, and Skytap which provides a full-featured "QA Lab".

Mercury (now part of HP), the 800 lbs. gorilla in testing also has quite a few SaaS offerings, which are increasingly gaining traction. And IBM has launched a development and testing cloud service, which allows using various Rational products in its cloud on a pay-per-use basis.

As a "bursty" workload, and with the growing trends of continuous integration and agile development, it's not surprising that cloud testing is doing well. Developers can run massive tests on-demand and in parallel, saving significant time and shortening the development cycle.

Deployment

Then, of course, there is deployment to production. This is where PaaS players such as Google AppEngine, Force.com, Stax, Heroku, Engine Yard and others come in. All of them significantly reduce the deployment of the app by pre-building and pre-configuring a stack of application infrastructure (data tier, middleware and so on).

Production

In production, applications need to be monitored and managed. New Relic is an application performance management service running entirely in the cloud, and it can serve both applications that run in a cloud environment such as Engine Yard or AWS, as well as applications deployed in the data center. Originally, the company supported only Rails apps, but has now expanded its product to support Java as well.

RightScale is another cloud-based service that allows for a variety of management and monitoring capabilities (and in fact integrates New Relic into it).

The Future of App Development

Last week I received a call from a friend at one of the largest vendors in the technology industry. He told me they were trying to figure out the "future of application development" and asked to meet the team so they could "pick my brain". Whoa, big topic.

I spoke about a number of areas and the topic of this blog was one of them. Although this is merely a story about "tools", there is a bigger picture here. After all, in the eyes of many, the number one benefit of cloud computing is increased business agility. And a key part of business is application development.

If we take all this to its logical conclusion, we can envision a web-based environment (i.e., cloud) which developers go to and can -- with a click of a button -- streamline the entire development process on-demand, accessing the myriad of tools that today require installation and configuration on local hardware.

If you are a developer and use any of these tools, or would like to mention other tools, or have any other thoughts about the experience of development in the cloud, please leave a comment.

Back in March, when Amazon first came out with reserved instances for EC2 (instances you can pre-pay at a discount for a period of 1 or 3 years) I posted Amazon Reserved Instances: Do They Make Business Sense? In that post I also made available a public Zoho spreadsheet with a simple calculator that allows figuring out whether reserved instances make sense for you or not.

In August, Amazon announced lower pricing for Amazon EC2 reserved instances, so I created an updated spreadsheet (if this cuts off in your browser click here):

I also created a version for the European prices (full, editable version here):

The break-even point for 1-year instances is 3,250 hours, or about 4.5 months (assuming you are running the instances 24/7). The break-even point for 3-year reserved instances is 5,000 hours, or about 7 months (assuming you are running the instances 24/7).

Several of the companies I have been working with have a substantial pool of instances constantly running. And although they are accounting for reserved instances in their business plans to demonstrate the long-term benefits of the gross margins they allow, they seem hesitant to actually pay for reserved instances. These calculations demonstrate that they are probably being too risk averse as in their case, the platforms/apps are sure to be running for at least 7 months and there are substantial cost-savings involved.

Are you considering or already running reserved instances? What is the use case and what are the pros and cons? Please share in the comments.

The organizers of the very successful CloudCamp events have put together a new virtual event called CloudCamp in the Cloud, which takes place next week. I've been to a few physical CloudCamps and they are great events, so I expect this online one to be good as well. Worth attending.

Here are the details:

My friend Dekel Tankel sent me some information about the next Hadoop user group, which takes place at the Yahoo campus in Santa Clara on Wednesday, October 21, 2009. Sounds like an interesting line up and agenda:

6-6:15 - Socializing and Beers

6:15-6:45 - Mumak - Using Simulation for Large-scale Distributed System Verification and Debugging
Hong Tang - Yahoo!

Large-scale distributed systems such as MapReduce are notoriously hard to verify & debug. An effective approach to address many of these challenges is through simulation. In this talk, I am going to present Mumak, a MapReduce simulator, including its design and implementation, early experience how it is useful, and point out some future work.

6:45-7:15 - Cloudera Desktop in Detail
Philip Zeyliger, Cloudera

7:15-7:45 - Karmasphere Studio: A graphical IDE for Hadoop

7:45-8:00 Q&A and Open Discussion

RSVP here.