Nemertes Impact Analysis

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Amazon is Persistent When It Comes To Cloud Storage

Amazon (NASDAQ:AMZN) announced a persistent block storage offering for the
Amazon Elastic Compute Cloud (EC2). Extending services into the cloud is of
moderate interest to IT decision-makers: 34.9% extend service components into
the cloud, according to Nemertes' Service-Oriented Applications and
Architectures (SOAA) research. More effective extension of the data center -
for storage and computing - into the cloud may spur broader interest.

Impacts:

Enterprises: Consider persistent block storage to add value to your in-house
SOA efforts and more effectively extend your virtual data center.

Vendors: Offerings such as this may result in extended value for SOA
orchestration vendors, including Progress Software (NASDAQ:PGRS), Sun
(NASDAQ:JAVA) and privately held SOA Software.

Investors: As Amazon, AT&T (NYSE:ATT), Google (NASDAQ:GOOG), IBM
(NYSE:IBM), Microsoft (NASDAQ:MSFT), Oracle (NASDAQ:ORCL) and Terremark
(NASDAQ:TMRK) all battle for cloud computing turf, persistent block storage
could be a differentiator and an acquisition target. Likely candidates include
privately held Nirvanix and Parascale.

Ted Ritter, Research Analyst