Yes, the Cloud Is Replacing Enterprise Hardware and Software
InfoWorld, David Linthicum, December 3, 2013
In its 2014 global technology outlook, Barclays suggests that businesses will shift away from their traditional data centers, reinforcing the trend that as more public cloud services are sold, the more traditional enterprise hardware and software vendors shrink. While AWS and other IaaS providers are expected to see revenues reaching nearly $10.2 billion by 2016, “big iron” hardware and server companies like EMC and IBM could face serious declines in revenue. Additionally, systems integrators will likely struggle with this changing paradigm, which will bring a lesser need for on-premise integration.
Our take: As David points out at the end of his article, “The fundamentals of architecture, design, operation, development, security, assurance, and management remain true whether we consume technology resources from the data center or from the cloud.” While traditional enterprise hardware and software will remain viable for some organizations, we believe that now is the time to embrace the cloud. There are three main factors contributing to increased cloud adoption: new technological advancements, more credible cloud solutions and a whole new and open mindset. Additionally, the evolution of service offerings and technologies means that it is more likely there is a solution in the cloud for organizations that will be meet the increasing demands of its users.
Hybrid Cloud Is About More than Savings
Datacenter Dynamics, Yevgeniy Sverdlik, December 3, 2013
While virtualization and private cloud bring cost reductions, organizations look to the hybrid cloud for other benefits, including infrastructure flexibility and reliability. Recently, Gartner predicted that nearly half of large enterprises will have deployed hybrid clouds by the end of 2017, with a primary goal of optimized business agility.
Our take: It wasn’t too long ago that everyone thought the public cloud was the be-all-end-all for enterprise computing. That idea came to a halt when concerns around security, compliance and data sovereignty emerged as it pertained to the 100-percent public cloud-based model. While the scalability and affordability of the public cloud is still in high demand for many enterprises, a hybrid cloud deployment grants the best of both worlds to enterprises. It offers organizations a secure environment for sensitive applications, while providing the opportunity to leverage the benefits of a public cloud for applications best suited for the public infrastructure.
Looking Ahead to Cloud Services in 2014 and Beyond
Talkin’ Cloud, Tech Data, December 2, 2013
Cloud computing is annually yielding an approximate $111 billion and, according to Gartner, that annual revenue number cloud reach $200 billion by 2016. As the evolution and maturation of cloud computing continues and models shift it will be increasingly important for organizations to focus on the development of integrated solutions. Ultimately, cloud computing’s potential is significant and multi-layered, so the more education and understanding we have, the sooner we can begin to capitalize on everything the cloud has to offer.
Our take: Organizations will be able to achieve equal or greater cloud service levels by tiering application components based on IT criticality, and it’s in this multi-tiered cloud approach that will help organizations achieve levels of scalability and cost efficiency that they aren’t achievable with a one-size-fits-all approach to cloud. This attitude enables IT departments to prioritize certain application components to meet their unique infrastructure requirements and boost the overall business output.