IBM Buys SoftLayer, But Will They Learn From Them?

IBM didn't just pick up a hosting company with their acquisition of SoftLayer this week, they picked up a sophisticated data center operations team -- one that could teach IBM Global Technical Services (GTS) a thing or two about efficiency when it comes to next-generation cloud data centers. Here's hoping IBM will listen.

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Hybrid Cloud Future? Too Late!

I've noticed a bit of a disturbing pattern of late in my cloud discussions with clients. They have been talking about hybrid cloud in the future tense. If you are planning for hybrid down the road, I have a wake up call for you. Too late, you are already hybrid. 

If your company has even a single SaaS application in use today I can almost gurantee you it's connected to something inside your data center giving you hybrid cloud. So hybrid isn't a future state after you have a private cloud in place and IT Ops chooses to connect that private cloud to a public cloud. Look at it through the lens of a business process or application service which is composed of different components, some cloud-based, some on-premise. From an Infrastructure & Operations perspective, hybrid cloud means a cloud service connected to any other corporate resource (a back office app, your web site, your intranet, another SaaS app you have under contract and yes, even your private cloud). Any of these types of connections presents the same integration impact - whether you established the connection or not.  If you are like the typical enterprise, that answered our Forrsights Q4 2012 Software Survey, then you have more than six SaaS applications in place today (that you know about) so cloud integration is likely well in place today. And about one third of the developers who responded to our Forrsights Q1 2013 Developer Survey said they have already deployed applications to the public cloud. Twenty-five percent also admitted to putting application integrations in place. 

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Is your data working for you?

 

Every company generates data that would be of significant value to its customers, partners and potential partners; information that could be combined with insights from this ecosystem, public data and other sources to generate significant new discoveries, products and business values. But making our data available, easily consumable and getting payback for sharing it are significant hurdles.

Over many years we have built up an ever-more complex web of security, legal and data management practices that make it nearly impossible to share valuable info between companies in an open marketplace style – which is exactly what is needed to open up this value.

But it doesn’t have to be this way. There is a new approach that leading enterprises and governments are taking today that is significantly simpler, more manageable and empowers companies to share their key data more freely, opening up massive new market opportunities for all. Here's how a few Forrester clients are taking advantage of this new model:

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OpenStack Goes Grizzly, Azure IaaS Goes Live. No Big Deal. Good

 

The OpenStack Foundation and Microsoft have released major updates to their cloud platforms and frankly there’s nothing really new or exciting here – which is a good thing.
Sure, there were over 250 new features added in the Grizzly release of OpenStack that brought several nice enhancements to its software-defined networking, storage services, computing scalability and reliability and it delivered better support for multiple hypervisors and better image sharing, too. The vSphere driver was given a significant update, Swift got better monitoring, and there's a new bare metal provisioning option, which was the talk of day one of the OpenStack Summit here in Portland, Oregon.
 
For Microsoft, it lifted the preview tag from its full Infrastructure as a Service (IaaS) enhancement to the Windows Azure public cloud platform. It’s a big deal for Microsoft who previously didn’t provide this level of virtual infrastructure control but compared to the rest of the public IaaS market, it’s more of a “welcome to the party” announcement than a new innovation or differentiator. To sweeten its appeal, Microsoft added a pledge to match AWS pricing for compute, network and storage services and thus dropped its prices in these areas by 21-33%.
 
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VMware Takes the Cover Off Its Public Cloud

Sometimes you can only coax a reluctant partner and I&O customer community for so long before you feel you have to take matters into your own hands. That is exactly what VMware has decided to do to become relevant in the cloud platforms space. The hypervisor pioneer unveiled vCloud Hybrid Service to investors today in what is more a statement of intention than a true unveiling.

VMware's public cloud service — yep, a full public IaaS cloud meant to compete with Amazon Web Service, IBM SmartCloud Enterprise, HP Cloud, Rackspace, and others — won't be fully unveiled until Q2 2013, so much of the details about the service remain under wraps. VMware hired the former president for Savvis Cloud, Bill Fathers, to run this new offering and said it was a top three initiative for the company and thus would be getting "the level of investment appropriate to that priority and to capitalize on a $14B market opportunity," according to Matthew Lodge, VP of Cloud Services Product Marketing and Management for VMware, who spoke to us Tuesday about the pending announcement. 

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The VMware Community Has the Innovator’s Dilemma

 

This week at the VMware Partner Exchange, CEO Pat Gelsinger and his executive staff decided to demonize Amazon Web Services and their public cloud brethren in a very short sighted defensive move that frankly betrays the fact that they don’t understand the disruption they are facing. Pat, you and your market have the Innovator’s Dilemma, and the enemy isn’t public cloud but private clouds.

According to CRN’s article on the event, Gelsinger was quoted as saying, “"We want to own corporate workloads. We all lose if they end up in these commodity public clouds. We want to extend our franchise from the private cloud into the public cloud and uniquely enable our customers with the benefits of both. Own the corporate workload now and forever."

Forgive my frankness, Mr. Gelsinger, but you just don’t get it. Public clouds are not your enemy. And the disruption they are causing to your forward revenues are not their capture of enterprise workloads. The battle lines you should be focusing on are between advanced virtualization and true cloud services and the future placement of Systems of Engagement versus Systems of Record.

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Why Your Enterprise Private Cloud is Failing

You've told your ITOps team to make it happen, you've approved the purchase of cloud-in-a-box solutions, but your developers aren't using it. Why?

Forrester analyst Lauren Nelson and myself get this question often in our inquiries with enterprise customers and we've found the answer and published a new report specifically on this topic.
Its core finding: Your approach is wrong. 

You're asking the wrong people to build the solution. You aren't giving them clear enough direction on what they should build. You aren't helping them understand how this new service should operate or how it will affect their career and value to the organization. And more often than not you are building the private cloud without engaging the buyers who will consume this cloud.

And your approach is perfectly logical. For many of us in IT, we see a private cloud as an extension of our investments in virtualization. It's simply virtualization with some standardization, automation, a portal, and an image library isn't it? Yep. And a Porsche is just a Volkswagen with better engine, tires, suspension, and seats. That's the fallacy in this thinking.

To get private cloud right, you have to step away from the guts of the solution and start with the value proposition. From the point of view of the consumers of this service — your internal developers and business users. 

I&O Looks Up at Cloud; Developers Look Down Into It

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How to Avoid the Hidden Costs of Cloud Computing

We all know the conventional wisdom about cloud computing: it's cheap, fast and easy. But is it really that much cheaper? Or is it simply optics that make it appear cheaper?

Optics can absolutely change your perception of the cost of something. Just think about your morning jolt of coffee. $3.50 for a no-foam, half-caf, sugar-free vanilla latte doesn't seem that expensive. It's a small daily expense when viewed by the drink. It appears even cheaper if you pay for it with a loyalty card where you don't even have to fork over the dough and the vanilla shot is free. But what if you bought coffee like IT buys technology? You would pay for it on an annual basis. That $3.50 latte would now be about $900/year. For coffee? How many of you would go for that deal? That's optics and it plays right into the marketing hands of the public cloud services your business is consuming today.

But optics aside, is that $99/month per user SaaS application just another $20,000 per year enterprise application? Is that $0.25 per hour virtual machine just another $85 per year hosted VM? No, it's not the same. Because the pricing models are not just optics but an indication of the buying pattern that is possible. If you buy it the same way you do traditional IT, then yes, the math says, there's little difference here. The key to cloud economics is to not buy the cloud service the same way you do traditional IT. The key to taking advantage is to not statically and rotely consume the cloud. Instead, consume only what you need when you need it — and be diligent about turning off when you aren't.

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Are You Like Oracle When It Comes to the Cloud?

Oracle makes itself an easy target for the ire of the cloud community when it makes dumb, cloudwashed announcements like last week's supposed IaaS offering. But then again, Oracle is just doing what it thinks it takes to be in the cloud discussion and is frankly reflecting what a lot of its I&O customers are defining as cloud efforts. 

Forrester Forrsights surveys continue to show that enterprise IT infrastructure and operations (I&O) professionals are more apt to call their static virtualized server environments clouds than to recognize that true cloud computing environments are dynamic, cost optimized and automated environments. These same enterprise buyers are also more likely to say that the use of public cloud services lie in the future rather than already taking place today. Which fallacy is more dangerous?

The latter is definitely more harmful because while the first one is simply cloudwashing of your own efforts, the other is turning a blind eye to activities that are growing steadily, and increasingly without your involvement or control. Both clearly place I&O outside the innovation wave at their companies and reinforce the belief that IT manages the past and is not the engine for the future. But having your head in the sand about your company's use of public cloud services such as SaaS and cloud platforms could put you more at risk.

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EMC Gathers Its Cloud Assets - Will Developers Come Aboard?

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:

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