This morning, 6fusion, the company standardizing economic measurement of IT infrastructure, announced that it signed a non-binding Letter of Intent (LOI) with CME Group, the word’s largest futures exchange company. Using 6fusion’s Workload Allocation Cube (WAC), the industry’s first patented benchmark to universally measure consumption and capacity of compute, network and storage resources, the two companies will explore the development of an Infrastructure-as-a-Service (Iaas) Exchange together.
CME Group will allow 6fusion access to its electronic trading platform, while 6fusion’s Marketplace platform (see previous post) will be used to track the physical delivery of contracts. The electronic trading platform provided by CME Group will help 6fusion quickly grow its global marketplace. John Cowan, CEO and Co-Founder of 6fusion, believes that the value an IaaS exchange provides to industry participants is undeniable. “IT infrastructure represents one of the largest and most obvious immovable assets from the balance sheet of global 2000 companies and emerging Internet businesses,” he said in a press release this morning. “An open marketplace enables buyers with the tools to mitigate risk in their positions, while opening up access to new routes to market for cloud operators.”
Due to the creation of the WAC, 6fusion and CME Group believe that technical barriers once standing in the way of establishing compute as a tradable commodity no longer exist. So does William Fellows of CloudScape, an interdisciplinary research and advisory program at 451 Research focused on cloud computing, Internet infrastructure and IT services. “An IaaS exchange could unlock enormous potential for buyers, sellers, and brokers,” he explained. “The normalization of supply and demand quantification performed by 6fusion combined with the trading execution venue provided by CME Group has the potential to seriously disrupt the market.”
As of last week, buyers and suppliers can begin signing up and leveraging 6fusion’s Marketplace beta at the company website. The benefits of participating seem obvious, but it will be interesting to see how quickly it catches on.