Well, it is in the real estate world, but not in the land of IT (where the term timeshare actually originated.) Welcome to “The Cloud.”
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One could say that cloud computing actually started in the ‘50s. In those days, a mainframe was effectively the cloud. Mainframes were so expensive that companies created timeshare arrangements with other companies in such a way that the mainframe was used 24/7. Access generally was a point-to-point circuit connecting terminals with the mainframe. A lot of progressive thinkers at the time were sure the world network would end up with 15-20 mainframe data centers connected to millions of terminals. When you think about it, they envisioned a global network of computers not significantly different than today’s Internet. There were a couple of things they didn’t see coming — microchips and component miniaturization that enabled the PC and hypertext language that enabled these terminals to interconnect and communicate.
The technology development accelerated wildly through the ensuing decades, paving the way for rapidly propagating WANs and LANs, populated with low-cost, high-power smart terminals each capable of holding greater and greater amounts of software and data, all of which drove the mainframe to the scrap heap. This converging technology, data refinement, open-source software and architecture now combined with the Internet has, in a strange way, taken us back to a model that more closely resembles what those bold prognosticators envisioned in the ‘50s.
What am I talking about? Cloud computing. Today we are seeing a literal explosion of tiny, blindingly fast and agile devices (ultrabooks, pads and phones) that can operate with minimal software (apps). They interact with software and massive amounts of data that is always the latest and most up to date and is resident in a central location (cloud).
Why am I telling you this? Because of concerns I’ve developed through a few recent conversations with aftermarket executives. In fact, I can group the concerns into three broad areas, 1) some don’t know exactly what the cloud is; 2) some don’t trust the cloud and 3) some have no idea of how to use the cloud strategically in a time when it’s becoming essential. These issues take me back about 10 years when the big drive to aggregate and clean up data began. Sort of like cloud computing, many aftermarket executives had trouble understanding the need for high-quality data. Some tried to hold their data hostage from channel partners and most did not recognize its strategic advantages.
Of course a number of things have happened in the last 10 years that should ease my concerns:
- The realization of the importance of high-quality data to fuel automation technology finally has swept over most aftermarket companies.
- IT has become more strategically involved and integrated at a multitude of aftermarket businesses.
- The SEMA Data Co-op opening was like Wal-Mart on Black Friday. The robustness of demand was unanticipated. The company has a lengthy queue of companies waiting to subscribe and participate.
I have over the years talked about a concept I call the yellow flag effect. I use it to describe a market change, especially the imposition of new technology that puts all the players in the game back to square one. In auto racing terms, it’s the same impact a yellow flag has – no matter how big a lead anyone might enjoy, the yellow bunches everyone back up.
Cloud computing offers the opportunity of another yellow flag in the technology race. Those who understand it and embrace it will bunch up with the leaders in the aftermarket race and be positioned to slingshot into the lead when the green comes back out. We will look at some of those opportunities in future installments. But in the meantime, let’s take that short walk to the Hog’s Breath Saloon.
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About the Author
Bob Moore
Bob Moore is a partner in the consulting firm J&B Service that specializes in the automotive aftermarket. Moore who chairs the SEMA Business Technology Committee and is a member of the SEMA board of directors, can be reached at [email protected] or follow him on Twitter @BobMooreToGo.