… and the web application hosting business cowers in fear. Now, my friends, people are discovering what Google’s REAL differentiated IP is..

Application scaling is a real problem for the managed hosting business unless some software company comes up with a platform/solution that lets them leverage their existing computing infrastructure. This is allegorical to, and is probably as big an opportunity as, SAN and NAS a few years ago … big incumbents like EMC and Network Appliance with totally vertical solutions (Google and Amazon in this case) competing with guys using software and off-the-shelf hardware (the hosting companies licensing the wares of some as-yet-non-existent software company).

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