Matson, AWS, and overcoming the cloud lock-in challenge for big data

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Shipping giant Matson made news back in November with its major migration to Amazon Web Services (AWS). Matson’s recent announcement to go ‘all in’ with AWS is another example of large enterprises realising the intrinsic value of the public cloud.

But merely getting set up on one of the large cloud providers is now table stakes – everyone has a pilot. True cloud success is another matter.

It took years to complete this migration at Matson, according to its CIO in the news coverage; so it’s not surprising that many companies are wary. In a 2016 Rightscale survey, companies ranked “lack of resources/expertise” as their greatest cloud challenge, even more than security. While that signifies an evolution in attitudes toward cloud, it also foreshadows new challenges. One important topic Matson’s CIO raised is something all enterprises need to consider when embarking on their cloud journey – cloud provider lock-in.

The perils of cloud lock-in

Concerns about getting ‘locked-in’ to a public cloud provider are not just about contracts, pricing or negotiating leverage. CIOs also worry about migration costs, unavoidable provider outages, redundancy and disaster recovery. They hear about innovations from one cloud provider that aren’t available with another and shifting performance metrics. Many buyers have unpleasant memories from lock-in scenarios in the mega-vendor and enterprise resource planning (ERP) heyday. In the age of the cloud, we want and expect choices

That’s why many companies are thinking about how to architect a multi-cloud strategy, across multiple public cloud providers, even if they may not be planning to implement it anytime soon. Risk-averse companies want to hedge their bets, innovators want lots of flexibility and many still aren’t certain which cloud provider is best suited for their needs.

But companies struggle with exactly how to adopt services in the public cloud – especially for big data. Lock-in concerns are particularly worrisome with analytics and data management workloads because it’s not just about vendor or infrastructure lock-in – it’s more than that.

Built-in or lock-in?

Cloud providers increasingly offer their own components for data warehousing and big data, alongside marketplaces of third-party solutions and services. For example, AWS offers Amazon Redshift for data warehousing and Amazon EMR for big data and Hadoop workloads. Similarly, Azure offers the Azure Data Warehouse and HD Insight. Compared to DIY, the built-in components can seem like a simple option. But they also represent a strategic step with long-term implications.

That’s because companies often need to make significant investments in custom tooling to integrate existing data flow with these built-in services. This makes it challenging later to move workloads to another cloud provider without duplicating the investment. This is a big deal for big data with a ripple effect on costs, related processes, data sources, tools, etc.

If an organisation is reliant on the cloud providers’ built-in services, they are making a long-term platform bet with high switching costs. And, when we’re talking about enterprise data – potentially huge volumes – that’s a much a bigger deal than say, switching smartphone platforms and even that seems a little painful, doesn’t it?

Multi-cloud services emerge

Fortunately, thanks to the rise of multi-cloud managed services, enterprises can now get the most out of the cloud’s capabilities while minimizing lock-in challenges. Services are emerging for a variety of cloud functions, including big data. Using services that work across cloud providers is a prime example of a multi-sourcing or dual-sourcing strategy. It also supports high-availability goals, making it easier to move workloads to a different provider and region as needed.

Migrating to the cloud unlocks incredible agility and productivity gains, and multi-cloud managed service providers can make things easier. Don’t get locked out over fears of lock-in.

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Through the seamless integration into Amazon Web Services, Raxak Protect automates security for any workload running on traditional IT, private clouds, and public clouds. A line of business user with no security experience can now provision a VM on Amazon Web Services with a CISO (Chief Information Security Officer) defined security profile (e.g., PCI-DSS, HIPAA, FFIEC, FISMA).

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Fuji Xerox Plans to Enter the Cloud Market

The cloud market is one of the most happening segments of the tech sector, and this is why everyone wants to take a share in its multi-billion dollar potential. The latest company to enter this market is Fuji Xerox –  world’s biggest supplier of office printers and document management systems.

According to its executive vice-president, Masataka Jo, this company plans to launch its cloud arm in mainland China soon, with an aim to focus on the higher end clients in the market. He made it clear that much of the focus will be on China this year, as it wants to create a sustainable business model in the world’s second largest economy. With this idea in mind, it wants to introduce its cloud products and services that will supplement its existing operations. These announcements come at a time when the Chinese market is facing slowing demand for goods and services due to a dampening of its economy, and these measures are hoped to invigorate Fuji’s position in China and to boost demand for its products.

In November of last year, the company introduced a new cloud service package called “Smart Work Gateway.” This cloud-based service will help businesses to make the most of diverse work styles –  something that is becoming a growing demand considering the fact that different employees prefer varying work devices. This product creates a cloud ecosystem where multiple devices work, and where its own cloud products as well as that of its partners link organically. The best part is this ecosystem can be customized to meet the work environment expectations of different employees, that in turn, is sure to benefit the organization as a whole by way of increased productivity.

In addition, this gateway will collate pertinent information collected from different sources, analyze them, and will provide meaningful insights to clients to help them devise better business strategies and decisions. All this means, businesses get the added advantages of analytics besides the regular storage and maintenance.

This product, in many ways, supplements the existing products of the company. Unlike many traditional companies that plan to start cloud as a separate arm of business, Fuji wants to use cloud as a natural extension of its long cultivated technologies in language, image, and knowledge processing, to keep in tune with the changing times of the business environment, and also to add value to its clients. As a result, its clients will continue to use the same products of Fuji Xerox, but will also get more value in the form of business intelligence and better connectivity.

This product is currently available only in Japan and Hong Kong, but Fuji wants to extend it to China as well in the next few months. Over time, it plans to introduce it throughout its Asia Pacific markets.

This strategy clears brings out the need for traditional companies to embrace the cloud, and more importantly,  use the cloud ecosystem to add value to their clients. In many ways, it also reaffirms the fact that cloud is going to be one of the primary drivers of business growth in the coming years.

The post Fuji Xerox Plans to Enter the Cloud Market appeared first on Cloud News Daily.

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