Amazon Web Services (AWS) held its first global customer and partner conference, re:Invent, in late November in Las Vegas, attracting approximately 6,000 attendees. While aimed squarely at developers, AWS highlighted two key themes that will appeal directly to enterprise IT decision-makers:
Continued global expansion. AWS cites customers in 190 countries, but the company is clearly pushing for greater penetration into enterprise accounts via aggressive global expansion. AWS now has nine regions (each of which has at least one data center), including three in Asia Pacific: Tokyo, Singapore, and Sydney.
An expanded services footprint within customer accounts. The major announcement at re:Invent was a limited preview of a new data warehouse (DW) service called Amazon Redshift — a fully managed, cloud-based, petabyte-scale DW. As my colleague Stefan Ried tweeted during the event, with a limit of 1.6 petabytes, this is not just for testing and development — this is a serious production warehouse.
The CRM solution landscape has experienced considerable change, including significant vendor consolidation and a rapid rise in the popularity SaaS solutions — often referred to as "CRM in the cloud." Organizations adopt SaaS CRM solutions because of low upfront costs, good usability, proven scalability, better flexibility, and faster time-to-value compared with traditional on-premises applications. Forrester surveys indicate that nearly 70% of organizations are interested in, or are currently using, SaaS solutions for horizontal business processes such as CRM and HR.
But clients tell me they cannot capture the promised benefits if they do not have certain prerequisites within their own skill sets, such as the right developer talent and governance model to work in an agile, iterative approach that leading organizations use to be successful. This is not your father’s CRM anymore, so don’t make these mistakes:
Forrester cloud computing expert James Staten recently published 10 Cloud Predictions For 2013 with contributions from nine other analysts, including myself. The prediction that is near and dear to my heart is #10: "Developers will awaken to: development isn't all that different in the cloud," That's right, it ain't different. Not much anyway. Sure. It can be single-click-easy to provision infrastructure, spin up an application platform stack, and deploy your code. Cloud is great for developers. And Forrester's cloud developer survey shows that the majority of programming languages, frameworks, and development methodologies used for enterprise application development are also used in the cloud.
Forget Programming Language Charlatans
Forget the vendors and programming language charlatans that want you to think the cloud development is different. You already have the skills and design sensibility to make it work. In some cases, you may have to learn some new APIs just like you have had to for years. As James aptly points out in the post: "What's different isn't the coding but the services orientation and the need to configure the application to provide its own availability and performance. And, frankly this isn't all that new either. Developers had to worry about these aspects with websites since 2000." The best cloud vendors make your life easier, not different.
It looks that EMC has finally admitted it needs a better approach for courting developers and is doing something significant to fix this. No longer will key assets like Greenplum, Pivotal, or Spring flounder in a corporate culture dominated by infrastructure thinking and selling.
After months of rumors about a possible spin-out going unaddressed, EMC pulled the trigger today, asking Terry Anderson, its VP of Corporate Communications, to put out an official acknowledgement on one of it its blogs (a stealthy, investor-relations-centric move) of its plans to aggregate its cloud and big data assets and give them concentrated focus. It didn't officially announce a spin out or even the creation of a new division. Nor did it clearly identify the role former VMware CEO Paul Maritz will play in this new gathering. But it did clarify what assets would be pushed into this new group:
So what does VMware and EMC’s announcement of the new Pivotal Initiative mean for I&O leaders? Put simply, it means the leading virtualization vendor is staying focused on the data center — and that’s good news. As many wise men have said, the best strategy comes from knowing what NOT to do. In this case, that means NOT shifting focus too fast and too far afield to the cloud.
I think this is a great move, and makes all kinds of sense to protect VMware’s relationship with its core buyer, maintain focus on the datacenter, and lay the foundation for the vendor’s software-defined data center strategy. This move helps to end the cloud-washing that’s confused customers for years: There’s a lot of work left to do to virtualize the entire data center stack, from compute to storage and network and apps, and the easy apps, by now, have mostly been virtualized. The remaining workloads enterprises seek to virtualize are much harder: They don’t naturally benefit from consolidation savings, they are highly performance sensitive, and they are much more complex.
As the end of 2012 approaches there is one clear takeaway about the cloud computing market — enterprise use has arrived. Cloud use is no longer solely hiding in the shadows, IT departments are no longer denying it’s happening in their company, and legitimate budgeting around cloud is now taking place. According to the latest Forrsights surveys nearly half of all enterprises in North America and Europe will set aside budget for private cloud investments in 2013 and nearly as many software development managers are planning to deploy applications to the cloud.
So what does that mean for the coming year? In short, cloud use in 2013 will get real. We can stop speculating, hopefully stop cloudwashing, and get down to the real business of incorporating cloud services and platforms into our formal IT portfolios. As we get real about cloud, we will institute some substantial changes in our cultures and approaches to cloud investments. We asked all the contributors to the Forrester cloud playbook to weigh in with their cloud predictions for the coming year, then voted for the top ten. Here is what we expect to happen when enterprise gets real about cloud in 2013: