Posted by: Greg Ness | June 8, 2016

3 Recent Cloud Developments You Shouldn’t Have Missed

==> Salesforce announced a new strategic partnership with AWS

This announcement was pivotal because it defied conventional cloud wisdom.  Most analysts described SaaS as the ultimate evolution from premise-bound computing, with Untitled design (22)IaaS as a necessary middle step for many existing apps. That all changed when leading SaaS player Salesforce.com announced that they would move onto AWS, mere days after a major Salesforce outage. Apparently the move to AWS caused some consternation within Salesforce’s high profile IT department.

==> A JP Morgan report in April cited the cloud as a strategic consideration for the future of dozens of tech companies

The report was only made available to JP Morgan’s clients, but you can read about it here and here. I put the report within the greater context of digitalization and cloud in: “Who will be crushed by Digitalization and Cloud?”

==> An Oppenheimer Report called AWS a massive efficiency flywheel for IT

Larry Dignan at ZDnet put the report in perspective here: “Amazon Web Services is likely to have 1.3 million servers that are more than three times more efficient than enterprise systems, data centers that use space better and generate better returns of about 20 percent.”

Posted by: Greg Ness | June 2, 2016

CIOs Must Cross New Chasm of Disruption

Since January I’ve published a pair of articles at Seeking Alpha on what I consider to beCrossing CIO Chasm early signs of a massive transformation of enterprise IT. Who will be crushed by Digitalization and the Cloud and Two Recent M&A Moves both addressed the new CIO chasm of digitalization and cloud.

Enterprise infrastructure is growing to levels of scale, complexity, cost and availability pressures well beyond the wildest dreams of any enterprise infrastructure hardware vendor.

Employees, partners, customers, etc. are accessing that infrastructure through endpoints that have as much software/functionality loaded into them as the early software stores. This represents an unprecedented level of scale, complexity and criticality, even for the largest of IT shops.

Digitalization with Cloud: The New CIO Chasm

The Internet of Things as it’s called is becoming a misnomer.  It’s really an Internet of Applications.  That may seem like a trivial distinction, but it makes all the difference in how one frames the disruption that has already destroyed the growth projections of most hardware vendors. You’ve seen the forecasts for infrastructure growth.  Mark Thiele, for example, recently predicted that the world will need 400 million servers by 2020. There is also an explosion in endpoints as the Internet of Things (IoT) redefines the meaning of “end-user” in the age of machine-to-machine communications. Thiele cited predictions ranging from 20 billion (Gartner) to 50 billion (Cisco) endpoints in the near future.

The real explosion is inside the growing population of endpoints and the servers.

Smart PhoneA recent survey found that the average Android user has 95 apps installed on their smartphone, supporting about 100 daily interactions via an average of 35 apps. Yet the explosion in apps has not translated into enhanced growth and margins for many of the hardware vendors. Software is continuing to drive hardware.

The growth in software that enables enhanced usability, agility, scalability, availability, manageability and security. Commoditization of the “things” is already underway, as software and apps become as strategic to endpoints as they became to PCs.

We’ve Seen This Before

The branch office boom and the enterprise web had a similar dynamic.  They created pressures for more application layer (referencing the OSI layers, especially 4-7) innovation to support increasingly diverse, specialized networking challenges. Companies like F5 and Riverbed focused on addressing these demands and companies like Cisco, Juniper and Citrix augmented their capabilities with the acquisitions of FineGround, Redline Networks/Peribit and NetScaler, respectively. The server load balancing market cratered as the demands shifted toward traffic management first, and then evolved toward secure application delivery.

Application delivery challenges today are more complex and exponentially more critical than they were ten years ago, when digitalization and smartphones were in their infancy (in terms of numbers shipped and, more importantly, installed applications).  Today, there are more apps in a single smartphone interacting 24/7 with an enterprise server and other apps than there were interacting from a branch office to HQ during business hours a decade ago.

The apps trigger the orders and the queries.  They determine who is ordering what from whom. They update key supply chain and analytics.

Outages, therefore, are becoming strategic issues even for second and third tier apps, as they are getting interconnected with other mission critical apps.

Don’t Forget the Cloud

In terms of app and service delivery the cloud becomes more than a necessity; it becomes an eventuality. Enterprises cannot cost effectively manage the 24/7 demands, including scale and complexity of this new world of digitalization.  Even Salesforce, perhaps one of the most advanced and well-managed SaaS offerings has capitulated and switched from their own cloud to a public IaaS cloud.

The cloud will drive an even larger app delivery disruption than the branch office and CloudAutomation and Orchestration Pieenterprise web boom because the stakes are even higher and the complexities greater. Instead of another appliance (a cloud front end – lol) it will be software: cloud automation and orchestration software.  This emerging category will include cloud management and optimization, cloud recovery and Dev/Test, cloud migration, cloud security and cloud discovery solutions.  These technologies will drive IT into new levels of resilience and productivity as these new digitalization and cloud demands emerge.

We will likely see the emergence of innovative cloud “brokerages” that will help CIOs address these exploding complexities. New approaches will be needed in much the same way as exploding volume and complexity forced the financial services industries to evolve from 1990’s era infrastructures, applications, policies, and governance structures. Comparing Wall Street’s transaction volumes of two decades ago against what it does today, you can see that digitalization and cloud will have an even greater impact on a broader range of corporate operating models.

Cloud automation softwareEnterprises are still trying to tackle these changes with yesterday’s tools.  For example, they continue to throw scripts and manual processes at the problems they are facing. The challenges will mushroom as enterprises try to fulfill CIO directives without automation. See The Trillion Dollar Cloud Question. And that is just the beginning.

Digitalization and Cloud for enterprise CIOs will be the equivalent of globalization on steroids: robust, real-time app queries across a growing range of endpoints into an exploding mesh of cloud workloads. In this very disruptive scenario resilience becomes strategic to growth, margins and the CIO chasm.

The Resilient Enterprise

Gartner in 2015 determined that 80% of outages are caused by either operation errors or app failures. The remaining 20% included hardware, OS, security, power and disaster events. Put that within the context of this greater mesh of the Internet of Applications (robust endpoints with dozens of apps interacting more frequently, including micro-transactions).

CIOs will have to arbitrate the growing conflict between static, manually scripted actions needed to address increasingly dynamic demands within ever complex app environments in hybrid clouds. Software is the best answer.

It’s no wonder that Gartner is already tracking business resilience and increased spending, especially on second and third tier apps. The first critical mission for the cloud for existing apps, therefore, may be to automate manual processes related to resilience, as IT today already cannot keep up with accelerating demands.  See, for example, DR is Broken, Just Don’t Blame IT.

This also extends to security.  Enterprise security teams must shift from further futile investments in legacy prevention technologies to more real-time, software-centric automated behavioral analytics and incident response technologies for greater resilience to recover from attacks they cannot stop.

Transformation will involve: 1) app modernization; 2) hybrid IT – using cloud IaaS as needed (see this very useful blog on evaluating apps for cloud migration); and 3) software-driven automation.

It is natural for traditional IT to think initially of scripts and manual processes to tackle the problem. Yet as delays and issues manifest themselves automation will become a necessity. The alternative is CIO blindness during perhaps the greatest transformation in IT since the advent of the network.  Investing in key capabilities will also help CIOs take their seat at the strategy table by finally aligning with and enabling the business rather than being a mere cost center.

Further reading

Exar Automates Oracle Stack Migration: InformationWeek

The Trillion Dollar Cloud Challenge

Why the Cloud will Crush Traditional Disaster Recovery

One of the Best CIO Quotes on Secondary Data Centers

 

Posted by: Greg Ness | May 23, 2016

Oracle Stack Migrated to AWS in Days

A special congratulations to the Exar team for accomplishing what many thought impossible.  They migrated their Oracle stack onto AWS in days.  Read more at InformationWeek:

The provisioning of servers needed by business users was speeded up by a factor of 4-5X and the speed of projects relying on the Oracle applications was also faster, he concluded.

“IT will look like a profit center instead of a cost center,” he claimed.

To do this in a short timeframe, he turned to a third-party knowledgeable in the migration of legacy systems, CloudVelox. The firm was able to “migrate us very fast, over two days,” he said. The move included the movement of 2TB of data between Fremont and the AWS West facility in San Jose. That transfer was accomplished over the high speed networking available to companies in the Silicon, not by trucking disks, Siljeg told InformationWeek in an interview.

Oracle Stack Migrated to AWS in 2 Days

 

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.

Posted by: Greg Ness | May 9, 2016

Companies Crushed by the Cloud

I posted an article at Seeking Alpha over the weekend after reading a CIO survey conducted by JP Morgan listing out tech vendors by projected sales growth. Highlights below:

Software will crush hardware

Digitalization and cloud are disrupting enterprise IT and operating models.

The impacts will produce a new generation of winners and losers.

Companies like Amazon and Microsoft stand to benefit.

Some established tech leaders are at risk.

Posted by: Greg Ness | February 8, 2016

IaaS Cloud War is a Tennis Match

Seattle: From a Jobs Shortage to a Housing Shortage

In 1971 an iconic billboard went up south of Seattle, across the street from a cemetery: “Will the last person leaving Seattle – Turn out the lights.”  Within a month The Economist called Seattle a City of Despair.

Less than a decade later things would start to change, and set the stage for a boom of historic, global proportions. A small startup named Micro-soft relocated from New Mexico. Over the following decades the software-centric economy led to massive economic growth.  Seattle by 2014 would be among the nation’s fastest growing cities.

[Aug 25 2016 update: See this Geekwire article on Seattle as the cloud city.]

Today the once dismal city is now at the center of an even larger and potentially more profound boom; a boom large enough to threaten the livelihoods of some of the most established and powerful tech companies, many of whom are located in Silicon Valley.

When Microsoft Azure CTO Mark Russinovich came to Silicon Valley I joined him for coffee (at a [Seattle-based] Starbucks, nonetheless) to catch up since our last discussion, which led to my earlier blog: The New Microsoft and the New Cloud.

We had a short chat about the future of tech, especially the ongoing churn and consolidation ahead for traditional tech hardware companies as the cloud goes mainstream. Mark predicted that one of the biggest surprises in the next 3-5 years will be a shift to cloud within companies which are today anti-cloud.

He sees the regional and 2nd tier financial services players leading in cloud adoption and pressuring the more established players with greater agility and better performance. In addition, Mark predicted explosive cloud adoption growth in 2016.

“It’s too late for cloud washing,” Mark advised when we talked about one of the recent mergers of traditional tech companies.

IaaS Cloud War is Sizing Up Like a Tennis MatchFINAL

Tennis as the Cloud War Metaphor

Mark offered an interesting analogy for the cloud war.  Instead of a horse race it would play out more like a tennis match, with two powerful companies (both based in Seattle) absorbing most of the growth while other players are marginalized. (I immediately thought of Ellison’s role in the revitalization of US tennis, especially in Indian Wells.  He might be the first to fully understand the metaphor.)

At this point it’s hard to disagree.  Azure’s global OS footprint and stack consistency, dark fiber connectivity and focus on hybrid cloud deployment and portability put it in a very powerful, enterprise-friendly position.  Microsoft’s shift from being software-centric to cloud-centric is truly remarkable and will likely be taught as a case study in business schools for decades to come.

That leaves perhaps a dozen cloud players outside of Seattle on notice, most notably Oracle, Google and VMware. VMware could bring an interesting dimension to both Oracle and Google. With Diane Greene now leading Google’s cloud business, she could have a Steve Jobs-like return to the helm of the company she successfully led for a decade.

If Mark is correct, then they might have 12-24 months to make it a doubles match. Otherwise it looks very likely to stay a singles game, at least for the foreseeable future.

Getting in the game will require a deeper connection between IaaS vendor APIs and premise-bound workloads.  That brings us back to the role of software (versus cumbersome, costly and risky manual scripts and configs) in accelerating growth in the enterprise market.  Think automated cloud migration and cloud recovery.

The rise of Seattle as an economic miracle enabled by a shift to software and the consolidation of tech hardware-focused players (starting with mainframes, then servers and network gear) poses a disruptive shift for many of the old guard in Silicon Valley.  A new generation of cloud software and security players will become global tech brands while the big brands of today consolidate for mere survival.

Doubles anyone?

Posted by: Greg Ness | August 5, 2015

Is IT Really Anti-Cloud?

LIGHTNING BOLT INFOGRAPHIC FINAL july 25

Shocking July 2015 Survey Results

Not Really… if you accept the results of a recent survey.

We just finished compiling the results of a disaster recovery best practices survey of more than 300 IT pros (read about the most notable findings).  Besides discovering that most firms are not following disaster recovery best practices, one particular finding stood out like a bolt of lightning: 55% of those IT pros surveyed said that they would adopt the cloud for disaster recovery if they could address security and networking requirements.

INFREQUENT TESTING PIE CHART FINAL JUL 24

That bodes well for the cloud providers as they continue to deliver more robust security and network functionality.  Many will say that they are already on par or better than most firms when it comes to security.

Other findings included infrequent testing of DR environments by most firms and the causes, which include insufficient internal resources and complex processes.  You can read about the survey at DR is Broken but Don’t Blame IT.

Read more about this the cloud and IT at: Will the Cloud Destroy IT Careers?

Posted by: Greg Ness | June 18, 2015

Is Your Disaster Recovery Strategy Obsolete?

After talking to VMblog and InformationWeek I’ve come to the conclusion that most companies are suffering through obsolete approaches to disaster recovery.  I’ve gone so far as to explain Why the Cloud will Crush Traditional Disaster Recovery in a recent CloudVelox blog.

Is Your DR Strategy Obsolete?

Following are two recent interviews where I discuss cloud DR more specifically (as a hybrid cloud use case) as well as how CloudVelox addresses the demands of complex legacy app environments with both physical and virtual workloads better than manually intensive, first gen cloud migration tools..

The level of automation for these mixed environments is what sets CloudVelox apart from the first generation tools developed for app environments already (100%) virtualized.

Interview with David Marshall at VMblog

From the interview: “For most organizations the traditional disaster recovery model is broken: the DR environment is expensive and cumbersome, and infrequently tested.  That means should an actual outage or disaster happen, a recovery could take days or even weeks, since the DR site needs to be a close match to the protected site, and for most environments that requires extensive and complex manual processes.  In between (infrequent) tests or dry runs these steps can be inadvertently missed. A duplicate site is equipped, powered and operated for the prospect of use less than 5% of the time, if at all.  That is incredibly wasteful. Cloud DR is a superior operating model to backup and traditional warm or cold standby models: it offers better protection and often much lower costs.”

InformationWeek News Desk at Interop

“Secondary data centers are unwieldy, costly and difficult to test.”

Posted by: Greg Ness | April 24, 2015

Hybrid Cloud Coming of Age for Disaster Recovery

2015 should prove to be a pivotal year for enterprise cloud adoption, thanks to a series of critical developments, including accelerating interest in the hybrid cloud.

HIGH GROWTH FOR HYBRID CLOUD

Numerous reports and surveys (previously reported in Archimedius) predict high growth for the hybrid cloud market:

  • Research and Markets just published a report predicting that “the hybrid cloud market is expected to grow from $25.28 billion in 2014 to $84.67 billion by 2019, at a Compound Annual Growth Rate (CAGR) of 27.3% from 2014 to 2019.”
  • A recent study by Peer 1 Hosting has hybrid cloud adoption tripling by 2018.
  • In a Computerworld article by Sharon Gaudin late last year IDC analyst Frank Gens predicted an increasing “hybrid movement” in 2015, that would be enough to boost the entire cloud market. In the same article Technology Business Research predicted 50 percent growth in hybrid cloud for 2015.

Industry experts also predict that the trend to hybrid will be significant enough to manifest itself in other ways; for example, the hybrid cloud will impact traditional colocation services, including private cloud deployment.

“Use of on-premises hosting is expected to fall from 31 percent to 17 percent in the next three years,” Peer 1 Hosting said, “while private cloud hosting could decline from 52 percent to 41 percent during that time frame.”

– Talkin’ Cloud, citing Peer 1 Research

Yet this high growth in the hybrid cloud, thus far at least, has been enabled by a low initial revenue base.  Enterprises appear to have just started to deploy hybrid clouds in meaningful numbers and sizes.  The barriers to hybrid cloud adoption have been related to the processes, risks and costs to extend security and compliance-related controls and services into the cloud.

THE SECURITY AND COMPLIANCE BARRIER

Concerns about security and compliance have topped most lists as the biggest barriers to hybrid cloud adoption.  Yet even these concerns are easing as a result of ongoing cloud provider investments and new offerings aimed at enterprises.  The security and compliance gap between private cloud and public cloud capabilities has been shrinking, per recent research.  In fact, the public cloud is already superior to many existing data center environments, and clearly most expect the gap between the two to dissolve as billions more are invested in advanced cloud infrastructure in coming years.

“It’s not that CIOs and CEOs are less concerned about security, especially when it comes to the cloud. It’s just that cloud vendors are coming up with better security answers, according to Allan Krans, an analyst with Technology Business Research.”

–  Computerworld, Dec 18, 2014

Last year I spoke to a CIO at an organization that deployed hybrid cloud disaster recovery (DR) ahead of the pack.  When he brought up the idea initially, he faced some early resistance related to cloud security.  So the team hired a security auditor to test the organization’s environment in the cloud. A few weeks later the consultant started the meeting with “I have some good news and some bad news.”  The bad news was that there were some security vulnerabilities.

“What could possibly be the good news?” the CIO asked.

“There are fewer vulnerabilities in the cloud than in your native environment,” the consultant answered.

Even if cloud providers offer better security and compliance, the migration path, especially for larger enterprise environments, can be treacherous.  Complex network, security and management controls need to be extended into the cloud.  These processes have traditionally been expensive, time consuming and risky.  That reality takes us to the automation barrier: while clouds have matured to enable enterprise-equivalent controls, the cost of extending those controls from the premise into the cloud has often been prohibitive.

Hybrid cloud automation then emerges as a critical capability.

AUTOMATION BARRIER

A recent survey published in CRN.Channelweb.co.uk “found that 41 percent felt that migrating complex apps to the cloud is ‘more trouble than it’s worth.’”  There is good reason for the findings: the traditional body shops and the various tools created to run on virtualized environments, including IaaS regions, typically do not automate the vast number of processes involved with extending the critical network, security and management services from the premise into the cloud.

Most were designed with agility or DR within a virtualized environment (e.g. v-motion), not between a traditional mixed (virtual and physical workload) environment.  This lack of automation has left plenty of costs and risks on the table, especially for larger enterprise cloud environments.

While public clouds have a well-worn path to automation once you are in the cloud, the lack of implementation when it comes to hybrid clouds is primarily due to customers and service providers building islands of automation (private clouds with platform lock-in).

The lack of use or adoption of available APIs leads to inefficiencies in process and a reduced TCO benefit to users and service providers alike.  That will change in coming years.

THE RISE OF HYBRID CLOUD AUTOMATION

Hybrid cloud automation software has matured and is now more capable of extending critical network and security services needed to address security and compliance requirements.  Automation has spread from mere image conversion or server-level blueprinting tools to platforms that automate the discovery, blueprinting, provisioning and synchronization of entire app stacks, services and databases for migration to the cloud or cloud DR.

Late last year I spoke with one of the leading disaster recovery analysts; he said the average cloud DR deployment was fewer than 20 servers, and few deployments were for apps supporting 30 or more workloads.  This year, environments looking for hybrid cloud deployment are many times larger.  For example, late last year MyPoints shuttered its western regional colocation facility and moved its 100-plus legacy server environment into AWS using hybrid cloud automation software for Pilot Light DR.

The MyPoints team had spent a year evaluating various options.  They finally found software that tackled the issue of extending networking security into the cloud.  Critical processes were automated, saving time and money while reducing risk.  Suddenly the cloud DR payoff was more than in sight: MyPoints reduced its TCO by 50 percent while establishing its first quarterly DR test plan.  The automated hybrid cloud allowed MyPoints to save money and increase trust in its DR environment.

KEY STEPS FOR HYBRID CLOUD AUTOMATION

Hybrid Cloud Automation Gears

STEPS

Discovery: Discovery of hosts (physical or VMs) in the application and mapping of dependencies (services, configurations, settings, etc.)

Blueprinting: Mapping static and dynamic workload characterization

Provisioning: Static and dynamic workload characterization

Synchronization: Continuous replication and synchronization of all hosts (OS, app, data, etc.)

Initiation: Igniting into production for testing, outage or migration

WHERE AUTOMATION MATTERS

Migrating an image of a server or a VM onto a cloud is perhaps the most trivial part of hybrid cloud automation.  The most challenging and yet vital processes to automate relate to the network, security and management services, i.e., those that often address security and compliance requirements. From discovery to provisioning, missteps in this area can add massive costs and risks to any project, especially for large environments.  Databases also have specialized needs for integration, often requiring third-party tools.

MyPoints relied on software that was powerful enough to address its demanding network and security requirements, so they would no longer be a barrier to hybrid cloud adoption.  In that respect the deployment is a model for future hybrid cloud DR deployments.

LESSONS LEARNED- WHERE MIGRATION MATTERS

Hybrid cloud automation software requires a new level of sophistication compared to the tools developed for traditional virtualization platforms or existing IaaS architectures.  Because traditional tools weren’t architected for key premises requirements, especially for physical systems, which are still commonplace, they require a great deal of manual support, which leads to increased costs, longer time to deployment and greater risk.

So as enhanced security and compliance make the cloud more enterprise-friendly, the key migration and deployment processes for extending security and networking services into the cloud are becoming increasingly automated.  As that happens, hybrid cloud deployments will become even larger and adoption will increase at a faster rate.

The missing link for the hybrid cloud for those still waiting for the hybrid cloud DR payoff?  Robust software that automates otherwise manual processes required to bridge the premises and the cloud.  This software will allow the enterprise cloud, and especially cloud DR, to come of age, as recently proven by MyPoints.

Posted by: Greg Ness | April 21, 2015

Recent Surveys Point to Hybrid Cloud Traction

HIGHLIGHTS

  • Research and Markets just published a report predicting that “the hybrid cloud market is expected to grow from $25.28 billion in 2014 to $84.67 billion by 2019, at a Compound Annual Growth Rate (CAGR) of 27.3% from 2014 to 2019.”
  • A recent study by Peer 1 Hosting has hybrid cloud adoption tripling by 2018.
  • In a Computerworld article by Sharon Gaudin late last year IDC analyst Frank Gens predicted an increasing “hybrid movement” in 2015, that would be enough to boost the entire cloud market. In the same article Technology Business Research predicted 50 percent growth in hybrid cloud for 2015.

« Newer Posts - Older Posts »

Categories