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The Great Cloud Takeover

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The Great Cloud Takeover

In an amazingly short span of a couple or so years, Cloud Computing has become an integral, perhaps even the most vital part of an enterprise’s IT Strategy. It has helped free-up a huge chunk of the IT from the constrictions of legacy software and hardware licensing data center models, and has opened, revolutionized and to an extent democratized the way IT delivers services and how the users access information, applications and business services.

But with the ever increasing impact the cloud has on IT, there’s also a palpable confusion about how its full value to business can be harnessed, mainly because of the continuous and rapid evolution of the cloud and its related technologies and the growing flux of vendors using portentous hyperbolic marketing speak to sell their cloud solutions.

In 2014, workloads in the cloud surpassed workloads in traditional IT environments for the first time. Since then, there has been a flurry of unplugging and replugging into the cloud. Last August, Netflix announced it was shuttering the last of its data centers, making it one of the first large enterprises to run all of its information technology in the cloud. The Netflix shift has been in the works for more than seven years, triggered after the media streaming giant was hit with a major hardware failure in 2008.

In October, General Electric announced that 70 percent of its enterprise workloads would migrate to the cloud by 2020. GE bills the move as the biggest transformation in the company’s 130-year history. The objective? To position GE as the premier digital industrial enterprise. Moving to cloud applications, GE contends, frees up vast resources it can use to focus on differentiating itself from competitors. It’s a smart strategy for the enterprise looking to thrive on its way from traditional to new.

 

Cloud

Migration to the cloud has gone from a stream to a flood.

In 2014, workloads in the cloud surpassed workloads in traditional IT environments for the first time. Since then, there has been a flurry of unplugging and replugging into the cloud. Last August, Netflix announced it was shuttering the last of its data centers, making it one of the first large enterprises to run all of its information technology in the cloud. The Netflix shift has been in the works for more than seven years, triggered after the media streaming giant was hit with a major hardware failure in 2008.

In October, General Electric announced that 70 percent of its enterprise workloads would migrate to the cloud by 2020. GE bills the move as the biggest transformation in the company’s 130-year history. The objective? To position GE as the premier digital industrial enterprise. Moving to cloud applications, GE contends, frees up vast resources it can use to focus on differentiating itself from competitors. It’s a smart strategy for the enterprise looking to thrive on its way from traditional to new.

 

The Great Cloud Swell

This stream to the cloud is quickly becoming a swollen river. Indeed, traffic to the cloud will swell 33 percent annually over the next five years. By 2019, 86 percent of all workloads will be processed in the cloud. Just 14 percent will be performed in traditional data centers.

Internet traffic to the cloud is surging exponentially. Information flows between data centers are expected to grow at a much faster rate than traffic to end-users. And while the index projects overall cloud workloads are poised to grow at an annual rate of 27 percent between 2014 and 2019, public cloud growth is expected to top 44 percent annually. Private cloud (cloud services delivered to enterprises by their IT departments) workload growth will tick up at a much slower rate: 16 percent annually.

 

The Great Cloud Challenge

However, this flood to the cloud is not without challenges. Because cloud environments function fundamentally differently from the way enterprise IT typically runs—with different feature sets and management protocols—they introduce a layer of complexity. One solution is to integrate cloud and on-premise data center services—the hybrid cloud solution—under a single architecture supported by a single vendor.

The potential benefits are worthy of the journey. Migrating workloads to public or hybrid clouds delivers vastly more business value; value that manifests in terms of cost savings, flexibility, efficiency, and scalability. Yet, enterprises typically realize just 35 percent of this potential value, leaving 65 percent untapped.

Cloud is fast becoming a critical enterprise component. In this age of digital transformation, cloud means enterprise IT can focus on competitive differentiation, not digital plumbing. Ignore it at your peril.

 

Strategic Cloud Computing Trends that will drive cloud strategies through 2016 and 2017.

 

  • Hybrid Cloud Computing Is The Way Forward

Hybrid Cloud Computing means using a combination of public or private cloud services and physical application infrastructure and services.

As is evident from some recent developments/deployments, hybrid cloud computing is set to become an imperative, in the form of a unified integrated cloud model, consisting both internal and external cloud platforms that can be leveraged based on specific business requirements.

Industry Analysts and Cloud Experts recommend that enterprises should center immediate efforts on integrating the application and dynamic data infrastructures to form a hybrid solution. To avoid oversights and other glitches, they should set guidelines and standards for how the public cloud application services or applications will combine with the various components of internal systems to ensure an efficient hybrid environment.

  • Cloud Services Brokerage Is Going To Be A Key Strategic Role Of IT

Over the last year, Cloud Services Brokerage (CSB) has graduated from being an option to a key strategic factor for users and IT alike. CSB essentially involves a service provider playing a liaising role in assisting the consumption of cloud computing. CSB as a trend is predicted to gather speed over the next couple of years as users choose to use cloud services, independent of IT bureaucracy.

So what the IT critically needs to do to uphold its relevance and significance is to find ways to position itself as an Enterprise CSB by creating simple, flexible, and business user-centric tools and processes (for instance modifying internal portals and service catalogs) that facilitate cloud adoption and encourage end users to seek IT’s assistance.

  • Cloud Friendly Decision Frameworks Are A Business Imperative

Even the greatest skeptic now agrees that Cloud Computing offers a plethora of completely indispensible features and benefits, like cost-effective use-based models of IT consumption and service delivery, greater agility and lesser complexity. It also allows the IT to focus its resources on delivering new services that fuel innovation and accelerate the business.

Yet, the success of your cloud adoption completely depends on whether your decision making structure optimizes the gift of the cloud. You need to first ensure you alleviate any concerns that you have regarding the performance, security, availability, and integration. Once you’ve satisfyingly crossed these issues, you can go about planning, implementing and optimizing your cloud strategy.

  • Application Design Must Be Cloud-Optimized

Now the way organizations go about cloud computing is to basically just transfer their enterprise workloads to the cloud or an application infrastructure. This is a good approach where the workloads need a variable supply of resources or where the application logically adapts to horizontal scalability.

But to fully extract the potential of your cloud model to deliver truly gold standard world class applications, you need to start designing applications that are cloud-optimized from paper to practice.

  • Future Datacenters Need To Adopt Implementation Models Of Cloud Service Providers

In a cloud computing environment, the data center and other implementation details are handled by the service provider while the enterprise only concerns itself with service consumption.

But as enterprises carry on building/expanding their own data centers, they will be far better served applying the cloud computing implementation models of Cloud Service Providers to increase performance, efficiency, and agility.

Thanks and Regards

Vijay Jain

+91 9870291860

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