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Is Lou wrong?

One of the most discussed comments at this year’s Hosting Transformation Summit was Lou Honick’s question to Michael van Dijken asking whether his focus on desktop software was self serving when Lou was running all his applications virtually through his browser.  I’ve thought about this issue a lot since the Office 2.0 conference, where everything we did was done through the browser.  Throughout the transformation summit I kept discussing this concept with people I met.  I think Lou is wrong.  I don’t think desktop applications are dead (or dying).

While I think that technology is moving in the direction where applications can be browser based, there’s one significant problem with everything in the browser:  bandwidth.  Simply put, unless you’re tethered to the desk and have a fat pipe coming in, using browser based applications is hideously frustrating.  The first issue is that wireless connectivity approaching broadband speeds is simply not available.  Sure, at the Office 2.0 conference all the apps worked perfectly on our iPhones.  Then again the organizer had set up over 40 wireless access points in the main ballroom alone.  That simply isn’t present anywhere else.  Indeed, I know of no business who relies even to a small extent on a wireless office network – the security concerns are too great.  Even with a mobile carrier’s broadband access card installed in my computer, I still don’t get the speed I get when I’m “plugged in.”  This doesn’t even consider the fact that most of the time wireless carriers are about as reliable as your shiftless second cousin who just got released from Sing Sing.

So what needs to change before Lou is right?  I think it’s simple:  everyone’s greed factor needs to be turned down about 90% and wireless needs to be secure.  I’m sorry, but who among us can pay $11.95 for broadband access in our hotel room, $12.60 for wireless access in the hotel conference center, $4 for the first 30 minutes and $1 for each additional five minutes at Starbucks, and $8.50 in the airport?  Naturally this is “per device.”  Woe be to the poor bleeding edge person who wants to use their laptop and their iPhone.  Cell companies are guilty of this as well:  fees for broadband access are prohibitively expensive, and that money doesn’t seem to be going to build faster networks.  On-line application companies also need to find a different pricing strategy.  While per month, per user, may work for some products, like exchange, it doesn’t take many users, or many months, before a license for Microsoft Office seems like a bargain compared to on-line office applications.  Finally, their needs to be some pricing competition for broadband.  Most businesses can’t afford to pay for a fat pipe into their business to support on-line applications.

Does anyone have this right?  Phil Shih and I agreed that Zimbra has it right.  With Zimbra you have the ability to use their products both on-line and off line.  As a result, you’re not dependent on the vagaries of our current fragile wireless infrastructure.  Do I hope Lou is right?  Yes, and I think some day he will be.  This will be a good thing for hosting companies.  For the next five years however, I don’t think desktop applications are going away.

 

Comments
Lou is right
# Posted By zack | 10/3/07 6:56 AM
lou it is right but it become tedious some times
# Posted By rickie morlie | 10/4/07 5:59 AM
I was there and listened to Lou's comment.
Lou is wrong. David is right, it's a combination of both worlds that will work well.
# Posted By Martin | 10/4/07 9:59 AM
David, your sentiments are very similar to those I posed in the latest issue of The WHIR. If desktop computers stopped getting faster and more powerful, then perhaps online desktop software replacements would seem more valuable. But owning the software and being able to use it at the speed and power that I enjoy now, coupled with the ability to fully customize my software experience (doing single-user plug-ins for thousands or millions of users sharing one base platform is no easy task), means I have no intention of giving up my licenses in favor of online software subscriptions.

I'm curious if there's a body of research that shows what SaaS directions would be most supported by end users, particularly those who purchase large numbers (or Enterprise) licenses for many users at one time.

Hybrid models, such as Zimbra, Outlook, Quickbooks (not entirely hybrid, but there's some compatibility, and I foresee better integration between online and desktop apps in the future) and others seem the most useful route to go.
# Posted By Paul Hirsch | 10/5/07 2:05 PM
Paul as far as i know there are no specific SaaS directions supported by endu
users.
# Posted By Email Spam | 10/8/07 1:15 PM
I think that Lou is closest to the mark on this one, but for different reasons.

While I firmly believe that desktop applications will still have their place in most corporate environments, the way that they are delivered to end users is going to change dramatically.

My company, VCIT Consulting, provides small businesses with a complete virtual computer system, back ended by Citrix and VMWare technologies and delivering this infrastructure to clients - no capital outlay. This approach and other competing technologies is going to move EVERYTHING into the data center and hosting companies will be able to benefit from some of this inertia by offering clients will fully hosted and managed solutions while offering SaaS under the SPLA license agreement and other similar licensing programs.

Application streaming, VDI, Server based computing - a hybrid of these solutions will replace conventional desktops and desktop applications will evolve to make delivery to virtualized desktops easy while dramatically lowering management costs.

Computers outside of the data center will be simple, dumb terminals that have a web browser and a very lean, unmanaged OS. The actual desktops will be fewer in number, likely virtualized, and will reside completely in the data center along with all the corporate data and back end applications.

At least, that's what I'm betting the farm on :-)

Cheers,

Alan Osborne
President
VCIT Consulting
web: http://www.vcit.ca
# Posted By Alan Osborne | 10/9/07 3:19 PM
The future of electronic software delivery will be a blend of local usage (online and offline) with central management. As Paul Hirsch mentions, why waste the horsepower of your PC just to run a browser? Why not run a PC app developed for the PC with all it's richness and robustness, yet use it under a service model? Application streaming provides all that and more. As noted extensively above, not everyone can afford (or has access to) a broadband connection all the time. Streamed apps place the controle in the providers hands, and the elimination of tethering constraints for the End User.

Zimbra is getting close, but a free model doesn't make us money. What if you were to stream the Zimbra Desktop for offline use (with all the provider benefits of streaming)? Now THAT might be worth a service offering that derives revenues.
# Posted By Paul Valcheff | 10/9/07 7:32 PM
Does any have seeing 3/4g and wimax market trends for 2008-2010? If you keep eying today's cellular market, you can say it is 'low and unreliable'. Or do you bet carriers will be sat down looking their revenue go away in favor of TOIp? Wheter SaS be from rewriten apps for web or TS based, 'desktop' apps will be each year more rare from now, I bet 2010 may CAD apps resting last. If you know Telefonica will be putting 5Bi US$ only in brazilian for wimax and ToIP up to 2010, you will hear my comment with other eyes. 'Reachness' is definetely NOT ofr average user - which are I guess 90% of the market and is where corp investments have to be made. See salesforce and sap cases... These guys FOLLOW telecom market trends...
# Posted By Marcelo Sauaf | 10/10/07 11:51 PM
When all the facts are presented as David did, it is obvious that Desktop Apps still have long life before him. And i agree with the idea that we cannot rely even in 80% on on-line application.
Technologies have to be more convincing and télecommunication operator have to be less greedy.
Are we (as i am from that part of the world) thinking about africa.
If the developpement of desktop application stops it will be the end of the hope in our well being through thechnologies
# Posted By Agboka Atsou E. Sandro | 10/12/07 5:27 PM
I think every one is right in hios opinion. No two people can have same vies on one topic.
# Posted By WindowsDave | 10/19/07 7:23 AM
I have found that the bandwidth on the 3g network will support many online functions and may support this idea but what about all the places where there is NO service of any kind save satelite. Desktop Apps are here to stay for a good long time...

KD

Sinew, LTD
Nevada, USA
# Posted By Ken | 10/22/07 5:04 PM
6 months late I revisit this topic and think about the volume of umpc, iPod and 3,5g cellular penetration (which may serve as modems to desktops and notebooks in virtually any city) at these time gap. I guess softgrid and zimbra and alike will bomb next year. The raciocine of 'why waste pc power' does not prevail 'absolute' when we see all those hordes of terminal servers in enterprises. Having PCs to low-knowledge workers (the majority) use highs the TCO. That was the reason Terminal Services was purposed to address. With softgrid (or even desktop virtualization) we may have the same set of apps in any device. Why Terminal Server didn't spread so much? Just due to end-user application issues. Having those apps through softgrid / virtual desktops in the browser and kills current Terminal Server. Even now PhotoShop is on the web for small and light tasks and needs. Those "fat" Solid Works, PhotoShop, Corel & alike tasks which is not suited to the scenario, will be kept in PCs but I beat 90% of desktop apps in enterprises will be virtualized in next 2 years.
# Posted By Marcelo Sauaf | 4/17/08 11:45 AM
 
 

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