Have you seen the movie Birdman — the one that just won the Best Picture and Best Director Oscars? It’s about a middle-aged man who was once a popular movie star but has been criticized throughout his career and how he finally achieved a breakthrough performance and found great success in a Broadway production of the play What We Talk About When We Talk About Love.
The story of Microsoft Azure is similar. Microsoft was hugely popular in the age of the PC but has sailed into troubled waters in the cloud era. But now — a year after Azure’s commercial launch in China — CIOs and EA professionals must understand how and where Azure might impact their existing MSFT technology investments to achieve business transformation. Azure is one of the leading forces driving cloud adoption in China. We attribute this to the progress that Microsoft has made by:
Expanding product offerings.Microsoft Azure now has local products in four key categories: compute, network, data, and application. Beyond basic components like virtual machines, websites, storage, and content delivery networks, Azure also has advanced features that are important for Chinese customers to address their unique challenges, including mobile services for the rapid development of mobile apps to accommodate the massive shift to mobile; a service bus for integration to eliminate information silos in the cloud; and HDInsight for big data capabilities to gain the customer insights necessary to compete with digital disruption from local Internet companies.
There’s a renewed interest in integration technologies due to new needs for integration to mobile, the Internet of Things (IoT), and cloud — but also because integration requirements betwen systems of engagement and systems of record are requiring realtime for seamless boundaries omnichannel, higher volume, with end-to-end security highlight the changes in integration practices. Forrester will soon publish a report about the integration trends around these subjects.
I am happy to pick up this subject again from Stefan Ried after being away from the space for the past six years. Stefan left Forrester in December and I regret his departure, because he was a very passionate analyst and a smart guy to work with.
On one level, IBM’s new z13, announced last Wednesday in New York, is exactly what the mainframe world has been expecting for the last two and a half years – more capacity (a big boost this time around – triple the main memory, more and faster cores, more I/O ports, etc.), a modest boost in price performance, and a very sexy cabinet design (I know it’s not really a major evaluation factor, but I think IBM’s industrial design for its system enclosures for Flex System, Power and the z System is absolutely gorgeous, should be in the MOMA*). IBM indeed delivered against these expectations, plus more. In this case a lot more.
In addition to the required upgrades to fuel the normal mainframe upgrade cycle and its reasonably predictable revenue, IBM has made a bold but rational repositioning of the mainframe as a core platform for the workloads generated by mobile transactions, the most rapidly growing workload across all sectors of the global economy. What makes this positioning rational as opposed to a pipe-dream for IBM is an underlying pattern common to many of these transactions – at some point they access data generated by and stored on a mainframe. By enhancing the economics of the increasingly Linux-centric processing chain that occurs before the call for the mainframe data, IBM hopes to foster the migration of these workloads to the mainframe where its access to the resident data will be more efficient, benefitting from inherently lower latency for data access as well as from access to embedded high-value functions such as accelerators for inline analytics. In essence, IBM hopes to shift the center of gravity for mobile processing toward the mainframe and away from distributed x86 Linux systems that they no longer manufacture.
Aware. Fundamentally, social analytics surface information and people an information worker had not considered before. Giving employees a broader perspective will help them do things like staff a fast-moving consulting project.
As the interest of Chinese organizations to adopt cloud solutions for business transformation is increasing, OpenStack-based cloud solutions have become the hot topic in the China market in 2014. I believe that 2015 will be the key year for OpenStack and it will rapidly develop in China. Here’s why:
Government policy support. The Ministry of Industry and Information Technology (MIIT) of China held the first China Open Source & Cloud Computing Summit (COSCCS) on December 11. At this event, the Chinese government for the first time officially declared its intention to support OpenStack ecosystems and encourage state-owned enterprises (SOE) to use OpenStack-based cloud products: “…through OpenStack, we can contribute to a good business model…” said the deputy minister of MIIT. Forrester believes that there will be more and more Chinese SOEs and local governments that will invest in OpenStack-based cloud project in 2015.
OpenStack is mature as a private cloud solution. With the launch of the Juno version in October 2014, OpenStack addressed many upgrade concerns, making it easier to roll back a failed deployment and ensure thorough cleanup. It also added a record 3,219 bug fixes and enterprise features, such as storage policies, provisioning of Hadoop and Spark, as well as network functions virtualization (NFV). Another specific advantage is that Chinese organizations are not facing the challenge to upgrade from early releases of OpenStack because the China market started deployment of OpenStack mostly from 2014 onwards.
Following the launch of my recent report, The Dynamics Of China’s Private Cloud Market, I’ve been getting briefing requests from vendors and inquiries from end users. My report addresses most of their concerns, such as the vendor landscape, business scenarios, and industry practices. However, following my discussions with many Chinese private cloud end users, I also thought it would be helpful to share with you the top developing trends among Chinese organizations using private cloud. They:
Are starting to expand private cloud scenarios for production applications.Initially, many Chinese organizations deployed private cloud solutions for development and testing scenarios. These organizations are now starting to transfer their business-critical workloads, such as CRM, databases, and other unique applications, to private cloud environments. Why? Because Chinese organizations have started to virtualize their critical workloads.For example, China Telecom set up a self-service private cloud platform for its eight province-level branch operators in 2011; in 2014, China Telecom started to gradually transfer its business and operations support systems (BSS/OSS) to the private cloud.
The cloud market in China is changing fast. The official launch of the commercial operations of Microsoft Azure (Azure) earlier this year started a new chapter (as detailed in my March blog post), while last weekend’s Amazon Web Services (AWS) summit was held in China for the first time and announced the third episode of this war. AWS is speeding up building its ecosystem and starting to challenge both Microsoft’s early-mover advantage and the market share of other global and local players.
To help CIOs and enterprise architects set up their hybrid cloud strategy in the region, we’ve put together a brief comparison of the Azure and AWS offerings and ecosystems in China:
Operations.Microsoft made Azure available for preview in China on June 6, 2013 and announced its commercial launch on March 25, 2014, stating that it would be operated by 21ViaNet and have a service-level agreement (SLA) of 99.95%. It has two dedicated data centers in Beijing and Shanghai. AWS announced the availability of its “Beijing region” in China on December 18, 2013, but it still hasn’t announced its official commercial launch, other than a partnership with Cloud Valley. Currently, AWS has only one data center in Ningxia province.
Offerings.Azure offerings cover services for compute (VM, websites, cloud services, etc.); data (storage, SQL database, HDInsight, backup, etc.); applications (service bus, Active Directory, CDN, media services, notification services, etc.); and networking (virtual network, Traffic Manager, etc.). Azure also provides other solutions, such as infrastructure services, data management, and application development and deployment.
What's ahead for cloud computing in 2015? Check out our report for Forrester's take on the most important trends in cloud computing and what you should do about them. In 2014, cloud entered the formal IT portfolio, and technology managers stopped treating cloud as competition. In 2015, cloud technologies will mature into the driving force powering the most successful companies. Cloud enables unparalleled levels of sustained innovation. Companies that harness its power will win, serve and retain customers better than their competitors -- in less time and for less money -- if they take advantage of all the cloud has to offer. But where should you start?
Cloud computing isn't limited to a single technology, service, provider, or deployment model. Our cloud team, including James Staten, Lauren Nelson, Liz Herbert, William Martorelli, and Henry Baltazar, has gathered the most important 2015 trends in public cloud platforms, cloud management, application design, security, service provider strategies, SaaS, private and hybrid cloud. In our ten-prediction report, we describe the current state of the art in cloud, what will happen in 2015, and how you should respond. This report helps you focus on the most important trends first.
Digital transformation will drive technology spending growth of 4.9%.Always-connected, technology-empowered customers are redefining sources of competitive advantage for AP organizations. In fact, 79% of business and technology decision-makers that Forrester surveyed indicated that improving the experience of technology-empowered customers will be a high or critical priority for their business in 2015. Similarly, 57% said that meeting consumers’ rising expectations was one of the reasons that they would spend more money on technology next year — the top reported reason for increased technology spending
On October 31, IBM and Tencent announced that they will work together to extend Tencent’s public cloud platform to the enterprise by building and marketing an industry-oriented public cloud.
Don’t be fooled into looking at this move in isolation. With this partnership, IBM is turning to a new page of its transformation in China, responding to the challenges of a stricter regulatory environment, an increasingly consumerized technology landscape, and newly empowered customers. The move is a crucial milestone in IBM’s strategy to localize its vision for cloud, analytics, mobile, and social (CAMS). IBM has had a strategic focus on CAMS solutions and is systematically building an ecosystem on four pillars:
Cloud and social. This is where IBM and Tencent are a perfect match. IBM’s cloud managed service, operated by its partner 21ViaNet, officially went live on September 23. It can support mission-critical applications like ERP and CRM solutions from SAP and Oracle from both the IaaS and SaaS perspective. This could help Tencent target large enterprise customers beyond its traditional base of small and medium-size businesses (SMBs) and startups by adding social value to ERP, CRM, and EAM applications.