Posted by: Greg Ness | May 11, 2016

The $Trillion Cloud Question: Migration?

A recent JP Morgan report predicted a massive uptake in enterprise cloud adoption in the next five years based on a recent CIO survey. Within a few weeks a May 2016 Forrester report indicated that migration into the public cloud involves considerable manual processes:

By Forrester’s estimate, the cost of public cloud is relatively small compared to the much larger cost of labor involved, which accounts for over 50% of total migration costs. As detailed in the brief, “[L]abor costs dwarf infrastructure and platform services costs in most of the migration projects we’ve reviewed.”

Adding more icing on the cloud migration cake, Salesforce recently announced that it is moving to AWS. In addition to enterprises moving workloads to the cloud, AWS has landed one of the leading SaaS players.  That’s a big deal.Duh

For years conventional wisdom has advised that SaaS represents a progression of app delivery from IaaS. That is, workloads would eventually move from IaaS to SaaS delivery. Now it looks like SaaS providers will be using IaaS to deliver SaaS. This has huge implications for the growth of IaaS and the cloud migration market.

While it may not make much difference for SaaS customers (other than improved resilience perhaps- sorry, I couldn’t resist), this has considerable implications for AWS and Azure and a host of secondary IaaS players.

IaaS gets closer to looking like the future pillar of IT, which poses a question: Are there enough IT pros in the world to migrate the workloads that CIOs in the US want to migrate in the next five years?

Cloud Migration Army.png

Cloud Migration Army

This deep conflict between CIO demands and trained labor supply casts the spotlight on recent news about Exar Semiconductor’s automated cloud migration project as demand for automated cloud migration escalates:

It turns out migration wasn’t so painful after all. “We were surprised at how CloudVelox was able to mimic what we have on premise in the cloud,” Seljig said. “They figured it out in one day.”

Things should get interesting. Very interesting. The AWS partner ecosystem has been dominated by manual process body shops.  That has to change if CIOs will be able to accomplish what they want, especially in an era of careful IT spending.


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