Similar in some aspects to my previous post Can you make money writing algorithms ? Part II.
The basic concept is quite accurate, cloud computing is best suited where capital is sparse and change is frequent. He asks what will it make to turn current hosting to cloud computing one. My guess would it takes a very strong software to turn them in that direction. The type of software a service provider would not be able to write, but really needs a very strong start-up or an ISV to develop. It is much more complicated than just integration of open source and commercial software ( trust me, I do support in my spare time : ).
I’m actually busy these days writing a detailed technical white paper on what it takes to create a virtual machines cloud to run real enterprise applications. I’ll update when its out and ready. Hints : Scale, Frequency of Change, Networking, And highly flexible optimization system that bridges business, technical and product gaps and can be changed instantly.Stay tuned.