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Cloud Services and Infrastructure in 2017


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Cloud computing fundamentals SaaS, PaaS, IaaS, and managed services
State of cloud infrastructure in 2017
Current Market
Key differentiators of market leaders
Emerging trends

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Cloud Services and Infrastructure in 2017

  2. 2. Topics • Cloud computing fundamentals • State of cloud infrastructure in 2017 • Current Market • Key differentiators of market leaders • Emerging trends
  3. 3. • Ran the product team that grew the VMware private cloud at Rackspace from $300M to $600M • Led the Dell/EMC/VMware alliance for Rackspace • Invented an automated testing platform for HP servers • 22 computer architecture patents About me Convergent Founder and CEO: Creates software for integration of rich data, analytics, IoT and AI across legacy and cloud environments
  4. 4. Cloud computing – Who cares? Cloud is the foundation for digital businesses Systems of Engagement Systems of Intelligence Systems of Record Cloud
  5. 5. Credit: flickr/jenny-pics/ Cloud computing – What is it? Technology delivered in a new way • Over the Internet • Capacity provided on an “as needed basis” or utility • Resources provided programmatically (API) • Some (or all) IT systems now owned and operated by a Cloud Service Provider (CSP)
  6. 6. Cloud computing – What is it? Company Cloud Service Provider Company Traditional IT model Cloud IT model Hardware Datacenter USERS Applications Operating Systems Hardware Datacenter Users Applications OS
  7. 7. Cloud computing – What is it NOT? • Virtualization • Not automated via API • Hosting • Off-premise (Colocation) • IT Outsourcing
  8. 8. Types of cloud computing •“Unlimited” number of users •Share a common platform, e.g. Google, Amazon AWS, Microsoft Azure, etc. Public Cloud •Limited number of users linked by special interests, i.e. “government cloud”Community Cloud •Integrated combination of on-premise, private, public and/or community cloud services from different providers Hybrid Cloud •User self service, highly automated •Could be on premise or hosted •Used by one or more internal organizations Private Cloud
  9. 9. Cloud ecosystem • Software as a Service SaaS • Platform as a Service PaaS • Infrastructure as a Service IaaS • Applications • Middleware • Databases Integration & Applications • Virtual Machines • Hardware • Datacenter Applications Databases Middleware OS CompaniesService Providers Users & IntegrationManaged services • Professional services • Service desk
  10. 10. Why are there so many flavors of cloud? Proliferation • Many application types • New business use cases drive new architectures • Companies have different internal skillsets
  11. 11. Pricing models in the cloud • Resource per hour, minute, second • Server per hour • GB per hour • Inbound/Outbound Bandwidth • Data Migration services (ex.Snowball) • Per API call (data transaction)
  12. 12. Methods cloud providers use to maximize profits • Fremium • Proprietary APIs • Data Gravity • Sticky proprietary features • Google Big Query • AWS OpsWorks Stacks
  13. 13. Infrastructure cost – public vs. private cloud Unit $ Consumption Workload Variability Public Cloud Private Cloud Source: Author
  14. 14. The cloud is a confusing place • The answer is – yes, to both • You can consume the platform offerings, or just consume the infrastructure and do the rest yourself • Many combinations of service providers are possible (and common) Is Amazon Web Services (AWS) a IaaS or PaaS?
  15. 15. 2017 State of the cloud – Your mileage varies Sources: IDC Press Release Forbes: computing-forecasts-2017/#5b554cd731e8 “Worldwide spending on public cloud services and infrastructure will reach $122.5 billion in 2017, an increase of 24.4% over 2016. ” -IDC Gartner predicts the worldwide public market will grow 18% in 2017 to $246.8B up from $209.2B in 2016. -Forbes
  16. 16. Why? • Different analyst taxonomies • Different vendor product categories • Products that span categories • Many private companies (startups), especially in SaaS
  17. 17. How to think about growth in cloud - Overall • Lots of headroom • Only 5-7% of addressable overall IT spend • Even by 2020, still less than 15% • Growing 5-7 times as fast as overall IT spend • New workloads primarily going to cloud • Servicing legacy IT will continue to be a cash cow (but declining gradually over time)
  18. 18. How to think about growth in cloud - SaaS • 2/3 of cloud revenue but only 5-10% growth • Most software providers are already using a SaaS model but may still get significant revenue from traditional model
  19. 19. How to think about growth in cloud - PaaS • Smallest segment but growing at 30-40%, especially with large enterprise • Most relevant with Fortune 250
  20. 20. How to think about growth in cloud - IaaS • $35-80B segment and growing at 30-50% • Moving from Rogue IT to Central IT • New SaaS startups - Primary customer for IaaS providers
  21. 21. State of the cloud 2017 Source:
  22. 22. Top 3 cloud players - Strategies • AWS • Quickly adding sticky enhancements • Developer focused (ex. devops tools) • Strongest with startups and cloud natives, growing in the Enterprise • Azure • Quickest growth • Making good use of enterprise sales, direct and channel, free cloud credits • Strongest in the enterprise • Google • Robust growth • Focused on Analytics and Big data to drive adoption • Growth in eCommerce (AdWords)
  23. 23. Emerging trends • Hybrid Cloud/Multicloud • Containers • Big Data/Data Lake • Hybrid Applications – Microservices, APIs, SOA, Data integration • Opensouce
  24. 24. Q & A