Nati Shalom's GigaSpaces Blog

In most discussions about scalability, we often approach the topic as a pure technical/architecture challenge, and ignore cost issues. The problem is that when we truly scale our application, and want to benefit from economies of scale, we're going to end up with scale limitations, not because of technical issues, but because of the pricing and licensing models.

In most discussions about scalability, we often approach the topic as a pure technical/architecture challenge, and ignore cost issues. The problem is that when we truly scale our application, and want to benefit from economies of scale, we're going to end up with scale limitations, not because of technical issues, but because of the pricing and licensing models.

Scalable pricing

Scalable pricing means a pricing scheme that provides the benefits of economies of scale. Below are pricing models commonly used for software products and how they fit in the new dynamically-scalable world.

• Free - while this certainly sounds like the best option (and may very well be) the customer needs to be aware of the following:

• Subscription model - With a subscription model you pay a fixed periodical fee, typically on an annual basis for infrastructure software, and on a monthly basis for SaaS. Subscription pricing is suitable for on-demand scalability as it provides the flexibility to grow or reduce cost based on the annual use of the product.
• Pay per use - this model is even more flexible then subscription model as it gives you higher granularity. Pay per use is provides in various forms where the usage can be a measure of CPU utilization or bandwidth utilization. Amazon for example charge per machine utilization for its EC2 services and data-utilization for its data services.
• Perpetual license - This model is used to buy licenses in advance and pay for support separately (normally 15-20% on top of the per CPU license). This is the most commonly used model with commercial software products, however, due to the large initial investment required by this model, it doesn't fit well with on-demand environment.
• Enterprise unlimited license - This model enables you to pay premium price in advance (based on potential future usage) and gives you the freedom to use the software without any limit. This model fits to environment where you anticipate that over a fairly short period of time the usage of the product will become wide and therefore the pay-per use or any of the other models mentioned above will become more expensive.

Which model to choose?

Each of the models has pros and cons and therefore the answer depends on your situation. Also, over time, as the situation changes, you will probably realize you need a different license model, and so it becomes equally important that the product you choose will give you the freedom to move from one model to another in the future.

GigaSpaces scalable pricing

With GigaSpaces we continuously look into ways to make our software license cost fit the on-demand world. For example, we launched a free Start-Up program that provides a totally FREE version of GigaSpaces for startups (hundreds of start-ups have already signed up for this program since we launched it last year). We also provide a Pay-Per-Use model for those running on Amazon EC2.

We felt that even though this is a fairly flexible pricing, we could do better. As of our 6.6 release, we added the option to buy our software at a yearly subscription price, and we also launched a new package called XAP Standard Edition, which is sold at a very low price of $9,500k per package (not CPU) where the package includes two servers, 4 GigaSpaces nodes and up to 50 clients or remote servers.

These changes were designed to address the needs of developers looking to start running their applications at a relatively low scale, who need the full functionality of the product, but cannot afford the full XAP price. Another principle that we kept when we designed this package is that moving from Standard to Premium edition wouldn't require any change in your architecture or code - which means that you could always scale to the premium edition just by changing the license key.
More details about the new pricing model is available here.

Nati Shalom was part of the star-studded lineup of speakers that spoke at SYS-CON's Cloud Computing Expo. Between them, they covered every aspect of the hottest IT topic for years, with not just Amazon but also IBM, Microsoft, Google, Yahoo, Intel, HP and a host of others all offering, using or developing high-end computing services typically described as “cloud computing” - through which massively scalable IT-related capabilities are provided as a service using Internet technologies.

Forrester Research analyst James Staten calls cloud computing "classic disruptive innovation - where the mainstream dismisses the product and small companies have time to create a real differentiated value." But there are so many offerings just now that what infrastructure architects are looking for above all is a set of organizing principles they can use to guide them in choosing between them all.

Such principles. and a host of associated topics, were addressed in San Jose by a Top Speaker Faculty that included:

• Dr Werner Vogels - VP & CTO, Amazon.com (Keynote)
• Mike Feinberg - Senior Vice President, Cloud Infrastructure Group, EMC
• Steve Herrod - CTO, VMware
• David Bernstein - VP & GM of Network Applications Infrastructure, Cisco
• Rob Weltman - Director of Grid Services, Yahoo!
  
• Peter Nickolov - President CTO, 3tera
• Kevin Haar - President & CEO, Appistry
• Songnian Zhou - Co-Founder & CEO, Platform Computing
• Patrick Harr - CEO, Nirvanix
• Gerrit Huizenga - Cloud Solutions Architect, IBM
  
• John Keagy - CEO & Co-Founder, GoGrid/ServePath
• Sajai Krishnan - CEO, ParaScale
  
• Reuven Cohen - Founder & Chief Technologist, Enomaly
• Mike Eaton - CEO, Cloudworks
• Jonathan Bryce - Founder at Mosso (Rackspace)
• Nati Shalom - CTO, GigaSpaces
• Don MacAskill - CEO & Chief Geek, SmugMug
• Billy Marshall - Founder & CEO, rPath
• Dr Thorsten von Eicken - CTO & Founder, RightScale
• Jonathan Pyke - Chief Strategy Office, Cordys
  
• Jason Stowe - Founder & CEO, Cycle Computing
• David Young - Co-Founder & CEO, Joyent
  
• Dave Durkee - Founder, CEO & Technical Director, ENKI
• John Janakiraman - CTO, Skytap
• Stuart Charlton - Chief Software Architect, Elastra
• Lars Leckie, Principal, Hummer Winblad Venture Partners
• Dr Rich Wolski - Professor, U.C. Santa Barbara
• Javier Soltero - Co-Founder & CEO of Hyperic
• Omer Trajman - Director of Field Engineering, Vertica Systems
  
• Rachel Chalmers - Senior Analyst, Enterprise Software, The 451 Group
• Alan Williamson, Founder at Blog-City.com, Creator of BlueDragon
  

A Who's Who of Virtualization and Cloud Computing Technology Rock Stars!
SYS-CON faculty alumni include such notable speakers as: Bret Adam (rPath), Deepak Alur (JackBe), Theo Beack (BEA Systems), Kevin Brown (Kidaro), Donato Buccella (Certeon), Bob Buffone (Nexaweb), David Christian (MindBridge), Jonathan Clark (Thinstall), Ariel Cohen (Xsigo Systems), Andrew Conte (APC), Simon Crosby (Citrix Systems), Kurt Daniels (Parallels), Sujil Das (Mellanox Technologies), Kevin Epstein (Scalent Systems), Shai Fultheim (ScaleMP), Rick German (Stoneware), Dror Gill (Ceedo), Ravi Gururaj (VMLogix), Matthew Haynos (IBM), Stephen Herrod (VMware), Arthur Hitomi (Endeavors Technologies), Gordon Jackson (DataSynapse), Peter Jensen (Thinstall), Steve Kaplan (AccessFlow), David Kleidermacher (Green Hills Software), Madhur Kohli (Levanta), Brian Korn (Scalent Systems), Gary Lamb (AccessFlow), Rich Lechner (IBM), Matt Lee (Neocleus), Victoria Livschitz (Grid Dynamics), Bob Lozano (Appistry), Peter Manca (Egenera), Andi Mann (EMA), Jerry Melnick (Marathon Technologies), Mark Milligan (VirtualLogix), Shridhar Mittal (iTKO), Hezi Moore (Reflex Security), Phil Morris (Sun Microsystems), Parviz Peiravi (Intel), Geva Perry (GigaSpaces Technologies), Harry Petty (Brocade), Stephen Pollack (PlateSpin), George Pradel (Vizioncore), Bob Quinn (3Leaf), Ben Rudolph (Parallels), Bill Scarborough (VMware), John Stetic (PlateSpin), Brian Stevens (Red Hat), Robert Steward (DataDirect), Allen Stewart (Microsoft), Butch Villafor (Egenera), Roland Wartenberg (SAP), Matt Waxman (EMC Corporation), Julian Weinstock (Desktone), Hubert Yoshida (Hitachi) and Kurt Zieglar (SIMtone).

The Most Distinguished Faculty November 19-21, 2008 -San Jose, CA
SYS-CON’s upcoming faculty includes such distinguished speakers as: Dan Avida (Opus Capital), Alex Bakman (VKernel), Michael Berman (Catbird), Ken Berryman (Symantec), Brad Brown (TUSC), Jonathan Bryce (Mosso), Donato Buccella (Certeon), Rachel Chalmers (The 451 Group), Stuart Charlton (Elastra), Reuven Cohen (Enomaly), Dave Durkee (ENKI), Mike Eaton (Cloudworks), Yakov Fain (Farata Systems), Walter Falk (IBM Global Technology Services), Mike Feinberg (EMC), Joe Fitzgerald (ManageIQ), Kyle Gabhart (Web Age Solutions), Anup K. Ghosh (Secure Command), Michel Gien (VirtualLogix), Alex Givens (UC4 Software), Dr. Robert Hagmann (Coral8), Patrick Harr (Nirvanix), Ralph James (RSSBus), John Janakiraman (Skytap), Mike Kemp (Liquid Computing), Lynn LeBlanc (FastScale), Lars Leckie (Hummer Winblad Venture Partners), Patrick Leonard (RogueWave), David Linthicum (The Linthicum Group), Paul Lipton (CA), Jay Litkey (Embotics), Bob Lozano (Appistry), Jim Mackay (iTKO LISA), Billy Marshall (rPath), Dave McCroy (Hyper9), Dwayne Melancon (Tripwire), Leslie Muller (DynamicOps), Mike Neil (Microsoft), Baldwin Ng (Microsoft), Peter Nickolov (3Tera), Gerardo Pardo-Castellote (Real-Time Innovations), Cornelius Pone (PPC), Bob Quinn (3Leaf), Sean Rhody, Jesus Rodriguez (Tellago), Michael Rowley (Active Endpoints), Nati Shalom (GigaSpaces), David Snead, Javier Soltero (Hyperic), John Suit (Fortisphere), Ratmir Timashev (Veeam), Omer Trajman (Vertica Systems), Dr. Werner Vogels (Amazon), Thorsten von Eicken (RightScale), Ed Walsh (Virtual Iron), Roland Wartenberg (SAP), John Whaley (MokaFive) Alan Williamson (Blog-City), Steve Wilson (Sun Microsystems), Rich Wolski (U.C. Santa Barbara), David Young (Joyent) and Songnian Zhou (Platform Computing).

Cloud Computing Technology Providers and Contributors in 2008-2009
The following companies are among the providers and contributors of Cloud Computing technology: 10Gen, 3Leaf, 3Tera, Absolute Performance, Accenture, Akamai, Amazon.com, Appirio, Appistry, Areti Internet, Boomi, Box.net, Canaan Partners, Cloud9 Analytics, CloudWorks, CNI Systems, CohesiveFT, CSRware, DataDirect, Dell, DNAmail, eBay, Elastra, EMC, EngineYard, Enki Consulting, Enomaly, Excelian, Flexiscale, Fortress ITX, Forum, GigaSpaces, GoGrid, Google, HP, IBM, IBRIX, Joyent, JumpBox, Layered Technologies, Level 3 Communications, Linxter, LongJump, MDV, Microsoft, Moka5 (MokaFive), Mosso, NewServers, Nirvanix, Ocarina Networks, OpSource, Panorama Software, Peer1 Networks, Pervasive Software, Platform Computing, PLX Technology, Qlayer, Rackspace, RampRate, Red Hat, RightScale, rPath, Salesforce.com, Saugatuck Technology, ServePath, Skills Matter, Skytap, SnapLogic, SOASTA, Sun Microsystems, Symphoniq, Symphony Services, Tap In Systems, Teneros, Terremark, Transitive Corporation, Univa UD, Verizon Business, Vertica, VMware, XCalibre, Zabovo.com, ZOHO and Zuora.

Virtualization Technology Providers and Contributors in 2008-2009
The following companies are among the providers and contributors of Virtualization technology: 3PAR, Accellion, Acronis, Actional, Active Endpoints, ActiveGrid, activePDF, ActiveServers, ActiveState, Actuate, Adaptec, Agile Software, AGiLiENCE, Agilysys, Akorri, AlachiSoft, Alter Logic, Altor Networks, Altova, AMD, AMDAHL, Amentra, Amyuni, anacubis, Apani, APC, Appcelerator, AppSense, AppStream, Array Networks, Ascential, Astaro, Attune Systems, Autodesk, AutoVirt, Availl, Avanade, Azul Systems, Barracuda Networks, BEA Systems, B-hive, Black Duck Software, Blackbaud, Blade Network Technologies, Blue Coat, Blue Lane, BlueArc, BlueNote Networks, BluePheonix Solutions, BMC Software, Borland, Bristol Technology, Brix Networks, BroadVision, Brocade, Burton Group, Business Objects, CA, CalAmp, Cassatt, Cast Iron Systems, Catbird, Cayenne Technologies, Ceedo Technologies, Cenzic, Certeon, CiRBA, Cisco Systems, Cision, Citrix Systems, ClearApp, ClearCube Technology, CollabNet, Compass America, Composite Software, Compugen, Compuware, Configuresoft, Continuity Software, Coraid, Courion, Coyote Point Systems, Crescendo Networks, CSC, DataCore, DataSynapse, Dell, Desktone, Digipede Technologies, Double-Take Software, Ecora Software, EDS, eG Innovations, Egenera, Elastra Corporation, Electric Cloud, Embotics, EMC Corporation, Emulex, Endeavors Technology, Enigmatic Corporation, Enterprise Management Associates, Entuity, EqualLogic, Ericom Software, ESRI, EVault, eXludus Technologies, F5 Networks, FalconStor, FastScale Technology, Foedus, Force10 Networks, Fortisphere, Forum Systems, Fujitsu, GemStone Systems, Getronics, GlassHouse, Green Hills Software, Grid Dynamics, GridGain Systems, GT Software, Hitachi, HP, Hyper9, Hyperic, IBM, ICEsoft, IGEL Technology, Illumita, ILOG, IMEX Research, Information Builders, Ingres, InstallFree, Integrien, Intel, Intellium, International Computerware, iTKO LISA, JBoss, Juniper, KACE, Kidaro, LeftHand Networks, Leostream, Lifeboat Distribution, Liquid Computing Corporation, Liquid Technology, Lynux Works, Mainline, ManageIQ, Managed Methods, ManageSoft, Marathon Technologies, McAfee, Mellanox Technologies, Microsoft, Mid-Atlantic Computers, Mindbridge Software, Mindreef, MKS, MonoSphere, Motorola, MQSoftware, mySoftIT, NASTEL, Ncomputing, NEC, Neocleus, NeoPath Networks, Neoware, NetApp, Netegrity, Neterion, Netuitive, Neverfail, Nexaweb, NextAxiom, Nimbus, Nimsoft, Niyuta, NoMachine, Novell, ONStor, Opalis Software, Open Kernel Labs, OpenSpan, OPNET Technologies, Optaros, OpTier, Oracle, Pano Logic, Parallels, Parasoft, Perforce Software, PHD Technologies, Phoenix Technologies, Phurnace Software, Pillar Data Systems, PlateSpin/Novell, Progress Software, Prolifics, ProSync Technology, Provision Networks, QLogic, Quest Software, Racemi, Raritan, Raxco Software, Red Hat, Reflex Security, Resolution Enterprises, RingCube Technologies, Riverbed Technology, Rogue Wave Software, RSA Security, Sagnet Solutions, SanDisk Corporation, SAP, SAVVIS, ScaleMP, Scalent Systems, Seanodes, Secure Command, Secure Computing, Sentillion, Shavlik Technologies, ServInt Internet Services, Silpion IT Solutions, SIMtone, Skytap, Skyway Software, Software AG, Sonasoft, SourceGear, Splunk, StackSafe, SteelEye Technology, StillSecure, StoneFly, Stonesoft, Stoneware, StoreVault, StrikeIron, STT WebOS, Sun Microsystems, SunGard, Supermicro Computer, Surgient, SWsoft, Sybase, Symantec, Systar, TBD Networks, Tenfold, TheInfoPro, Thinstall, Third Brigade, TIBCO Software, Tidal Software, Tideway Systems, TOA Solutions, TRANGO Virtual Processors, Trend Micro, Tresys Technology, Trigence, Tripwire, Ulteo, Unisys, United Devices, VaST Systems, VDIworks, VeeAm Software, Verari Systems, Verio, VeriSign, Vicom Computer Services, VirtenSys, Virtera, Virtual Iron, VirtualLogix, Virtugo Software, Virtutech, VisionCore, Vizioncore, VKernel, VMLogix, vmSight, VMware, Vordel, vThere-Sentillion, Vyatta, WaveMaker, Web Age Solutions, WSO2, Wyse Technology, XDS, XenoCode, Xiotech, xkoto, Xsigo Systems, Zenith Optemedia, Zeus Technology.