Toronto cloud computing software company Enomaly has an ingenious new business model that can save companies money when purchasing cloud computing capacity, and can provide new business opportunities for companies that have unused capacity.
Their venture is called SpotCloud, and it’s basically a spot market for cloud capacity. Companies that have excess capacity can publicly advertise the available capacity, the duration of availability, the hardware information and location, as well as any associated resource costs. Then, based on that information, buyers can bid on the available capacity, and SpotCloud compensates the seller at the end of the month (minus their cut of 10–30 per cent).
The service is being advertised as useful to two types of companies: those that only have temporary needs for capacity (or temporary needs for extra capacity) and those who often have downtime in their operations and are losing money on idle servers. As The Economist’s Babbage blog reports, the unused server capacity can come from unexpected places — in one case, an animation company listed 4,000 servers as available, as they were just sitting idle between the production of films.
A key point about SpotCloud’s market is that it allows sellers to retain a great deal of anonymity when putting their capacity up for sale. Aside from their location and technical details about their servers, they don’t have to provide any information about their company. This means that if a company’s unused cloud capacity is normally used for, say, renting out cloud capacity, they won’t have to undermine their own business by selling it at a lower price.
SpotCloud is currently in a public beta after the conclusion of their private beta, which began in November. As founder and CTO Reuven Cohen notes in his ElasticVapor blog, updates have been coming fast and furious for SpotCloud, as are new providers of cloud capacity.
For more information on SpotCloud, click here.