Sunday, June 01, 2014

Market Forces and Multi-tenancy

One of the core features of contemporary Web based back-end softwares have been ability to support multiple, different set-ups - tenants. SalesForce does that, Amazon does that. Most Business to Business Web / Cloud based Services do that. There is a reason for offering such 'multi-tenancy' on these cloud based software platforms - it is the economies of scale and one single point to roll out new services and features to all your major customers. That is what basic capitalism is - scale.

If someone were to say there are 50 websites each offering a service for a restricted geographical area, it will not be nothing new when only few of these websites remain in business after a while and some of the more able websites start to cater more than one geographical areas. After all web sites can serve folks spread out anywhere in the world; that is Internet. 

These are the basic lessons of 'market forces' in Internet era which are lost on American Politicians completely - both Democrats and Republicans. All these politicians when they crow about 'state ObamaCare exchanges moving to Federal Exchange'; they show the basic lack of how otherwise American Economy works in Internet era. Politicians are never good when it comes to understand Technology or Digital Economy. (Oh well, they can as well excuse themselves by saying "man, I am not a Technologist"....) But hardly there can be any more prominent example of 'flat feet American Politicians' than how they are reacting to the reality of most efficient way of conducting exchanges in one single portal. I guess one would not be surprised by these American Politicians who do not even want to accept the Science of Global Warming (nope, stick up that politically correct Climate Change with you....).

What amazes me is how Democrats are not able to argue 'market forces' reality here - an efficient portal (Federal one) trumps over many state owned inefficient ones. This is what Capitalism is all about - let invisible hand of Market weeds out inefficient endeavors. And talking of which, this would be one of the cruelest revenge on these Republican States who refused to create their own portals: by allowing their state users to use the Federal Portal they basically gave 'those eyeballs' to Obama! Talk about complete stupidity of these Republican Politicians - they all got enamored by Tea Party 'repeal ObamaCare' craziness while the real consumers of ObamaCare in their own State quietly migrated to the Federal portal - to the 'dark side' from Republican point of view. Like California, states like Texas and Florida have the necessary 'scale' to run an independent viable state exchange. But ObamaCare hate prevented these states from venturing into their own state exchanges.

Time and again it is proven that Republican impulse to 'oppose whatever Obama' lands them undercutting their end objectives; in this case stopping a single, centralized health exchange. Now that the ball is dropped from Republicans, what they can do is increase the 'heat' on over zealous Democrats in states like Oregon and Maryland who goofed their own State Exchanges. Hundreds of millions of tax dollars were wasted by these State Governments. IT Projects are notorious to pull off and at best of times even Private Sector fails to pull off such vast IT Projects. But Politicians, especially Democrats, have tendency to undermine complexity of such projects and wading into the area where they had no business to get involved. That is the Conservative case to be made and Republicans have a job on their hands to hold feet of Democrats in states like Oregon and Maryland to the fire.

Meanwhile, having salvaged Federal Exchange Portal and ObamaCare to certain extent, job for Obama Administration is to undertake over haul of how Federal Digital Infrastructure Projects are procured and executed. Any State which acquires this ability to execute these public IT Projects in efficient manner would essentially lay down solid infrastructural foundation in 21st Century. It is to be watched whether Obama Administration rises to this challenge after all. 

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