Research shows cloud spend going up in 2016 for two thirds of enterprises

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A report from analyst house Clutch has found two thirds of medium and large enterprises plan to increase their spend on cloud computing in 2016.

Of the 300 IT professionals surveyed, almost half (42%) said they would expect their cloud spend to go up by 11-30% with 14% opting for an increase between 31% and 50% and 7% anticipating even greater outlay. Comparatively, around a quarter (27%) said their cloud spending will remain mostly flat and only 6% said it would decrease in 2016.

Clutch argues such a pattern represents a clear growth opportunity for enterprise cloud service providers by appealing to organisations’ need for file storage, backup and disaster recovery and application deployment, with 70%, 62%, and 51% of those polled respectively arguing these as key priorities.

With this in mind, the research reveals cloud spending is directly influenced by the value enterprises derive from cloud infrastructure. “The cloud is building ROI faster and with better business accuracy, so companies are willing to reinvest in it ever year,” said Jason Reichl, CEO of technical consulting provider Go Nimbly.

The survey also uncovered an interesting trend in terms of outsourcing; more than half of enterprises (53%) polled hire an external consulting firm to implement their cloud infrastructure. Clutch argues the benefits of working with a consulting firm has its ups and downs; being able to access the company’s extensive knowledge base can be outweighed by the transfer of knowledge not passing through to the internal staff.

In terms of most popular providers, the survey results showed Microsoft Azure (23%) to be the widest used, ahead of Amazon Web Services (22%), Google (21%), and IBM (17%). The results are significantly at odds with other recent studies, yet Jose Alvarez, director of IT infrastructure at management consulting firm Auxis, argues that while AWS is well in front it’s all about how a provider’s services fit in to the technology at a given company’s disposal. “If a company or enterprise is attached to Microsoft products, then Microsoft Azure may be a better fit for them,” he said. “It depends on the company’s requirements.”

You can find the full study results here.

How to cross the DevOps chasm in a safe and reliable manner

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If you read IT blogs regularly, you would assume DevOps is already the status quo, that everyone has ‘crossed the chasm’, and are practicing continuous delivery on a daily basis. We read about all these amazing companies releasing hundreds of times a day using a mature DevOps model and release automation. Well, the reality is these exceptional companies are just that – the exceptions. Most companies are just setting out on their DevOps journey, and analysts predict they must catch up soon or succumb to digital Darwinism.

We see the business world being redefined by digital transformation via DevOps, so what is stopping you from following suit? As Tom Goodwin, an executive at the French media group Havas, pointed out, the world’s largest taxi company owns no taxis, the largest accommodations provider owns no real estate, the most popular media owner creates no content, and the largest movie house owns no cinemas.

Thus far DevOps has definitely had more of a development bias than an operations one

With this evidence it’s surprising that some companies are still scared to cross the chasm themselves. Having spent all their lives within the comfort of their established practices, they are hesitant to leave that safety. Even though they see other companies spreading their wings and reaching new heights, the unknown is always a scary prospect. This applies to cloud adoption for critical processes as well as DevOps.

DevOps adoption

An EMA survey from October last year found that just 25% of companies have a team known as DevOps, and this is an increase of just 5% compared to 2014. The study found that 97% had cross-functional teams compared to 60% in 2014. So in truth, DevOps is only just becoming accepted and established. However, these stats show that DevOps has finally crossed the chasm from hype to widespread adoption, and as with any leap of faith, it will take a while to settle and produce results.

There is no doubt that DevOps is needed to achieve a successful continuous delivery pipeline for bimodal IT: it is just a matter of time before it is adopted everywhere. The only problem is making the time for a transformation. With a constant backlog of work, changing an entire ethos can be challenging, but worthwhile. This excerpt from the 2015 State of DevOps Report says it all: “High-performing IT organizations deploy 30x more frequently with 200x shorter lead times; they have 60x fewer failures and recover 168x faster.”

Innovation is king

Thus far DevOps, has definitely had more of a development bias than an operations one.  It makes sense because a key point of avoiding or causing disruption in the digital business era is innovation, and innovation implies creation which is what developers do – create apps.

Ops teams tend to avoid using open source in the production environment – less than 10% of customers surveyed said they would consider it

At the DOES Summit I attended in November, there seemed to be a 70-80% dev presence. This reflects the level of innovation expected from agile coding practices these days, but we must also not sacrifice reliability, auditability and control.  The unbalanced scenario of ‘Big DEV, little ops’ can introduce unnecessary and costly risk. Perhaps agile practices suit a dev mindset more, but ops needs to be on board just as much.

As we have seen, bugs that are not caught in testing can cost companies millions when rolled out into production. A disaster such as those affecting the likes of the Wall Street Journal, United Airlines or Starbucks can cost the company more in terms of reputation and share price than successful DevOps can help them.

DevOps automation

Perhaps this is a fear for companies hesitant to leave reliable waterfall methodologies behind – they see DevOps adoption as accelerating risk or exacerbating existing challenges. In this respect there is much that the more conservative Europeans can take from their bolder US counterparts. However, DevOps is now mature enough for people to have learned from mistakes, and there are ways of rolling out DevOps across the enterprise in a controlled, incremental manner.

An automation platform from an experienced, established vendor can be used as a safety rope for the big leap. A repeatable, predictable Continuous Deployment pipeline can be built to amalgamate the best bits of SMEs’ knowledge from across IT departments or disciplines. This is then streamlined and tweaked over time with any superfluous manual tasks added to an automated pipeline, allowing SMEs to focus on deeper, more proactive work which leads to greater innovation and lower risk. In fact, automation makes DevOps possible. C. Little famously said that “DevOps isn’t about automation, just as astronomy isn’t about telescopes.”

Never blame your DevOps tools again

Choice of tools affects productivity along the deployment pipeline via both the suitability of the tools themselves and the job satisfaction gained by working with tools of choice. For this reason, a tool-agnostic automation platform is important, and this includes open source tools.

Agile coding practices may suit a dev mindset more, but ops needs to be on board just as much

The most successful DevOps teams complement specialised tools such as Docker, Puppet, Chef and HP QC by integrating them into a heterogeneous automation platform. This allows DevOps members to continue working using the tools they are most comfortable with, while allowing IT the flexibility of tool neutrality which prevents processes from being held hostage to vendors.  Additionally, an automation platform notifies team members of where along the pipeline a release or change is so everyone knows what to expect and when.

Reliable DevOps

When an enterprise chooses to adopt DevOps principles in production environments for customer-facing apps, they need an automation platform that can meet the scale, rigors and compliance requirements of production seamlessly. Few are using open source tools in production. Automic surveyed 200 customers and asked, “Would you consider using open source tools for your production environment?” Less than 10% said yes. Ops teams tend to avoid using open source in the production environment.

A repeatable deployment pipeline logically gives us DevOps metrics by which to measure success, meaning the business can be reassured that their investment is increasing release velocity whilst maintaining reliability at scale. So automation brings reliability to the often daunting prospect of a DevOps transformation. Isn’t it time you crossed the chasm?

IoT Emerging from the Hype | @ThingsExpo #IoT #M2M #BigData #InternetOfThings

While the Internet of Things (IoT) being condemned by Gartner in August as one of the world’s most overhyped technology trends of 2015 makes a good headline, this assertion is itself misleading by failing to acknowledge the rapid progress now being made as IoT emerges in clusters to deliver real benefits to users, even if these are still early days. However, Gartner was correct that the full promise of IoT as a joined up ecosystem of interoperable components is indeed five to ten years away.

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Enhancing the Online Shopping Experience By @FerhatSF | @CloudExpo #Cloud

With some of the busiest shopping days of the year behind us, now is the time for retailers to pause for a moment to evaluate what worked, and to consider new online strategies and technologies for the 2016 shopping season.

We don’t yet have numbers for 2015, but in 2014, holiday season retail e-commerce spending in the United States amounted to 53.3 billion U.S. dollars with the most money being spent online on Cyber Monday.

Fujitsu is working with Grid Dynamics to deliver an Oracle Commerce Platform as a fully-managed cloud service. I had a chance to sit down with Victoria Livschitz, Executive Vice President of Grid Dynamics, and ask her a few questions during our preparations for the upcoming National Retail Federation (#nrf16) show in New York City, January 17-19, 2016.

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DevOps and Microservices | @DevOpsSummit #DevOps #ML #Microservices

The (re?)emergence of Microservices was especially prominent in this week’s news. What are they good for? do they make sense for your application? should you take the plunge? and what do Microservices mean for your DevOps and Continuous Delivery efforts?
Continue reading for more on Microservices, containers, DevOps culture, and more top news from the past week. As always, stay tuned to all the news coming from@ElectricCloud on DevOps and Continuous Delivery throughout the week and retweet/favorite to get your favorite pieces featured in our weekly recap.

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Quantified Small Business | @ThingsExpo #IoT #M2M #BigData #InternetOfThings

Sensors and effectors of IoT are solving problems in new ways, but small businesses have been slow to join the quantified world. They’ll need information from IoT using applications as varied as the businesses themselves.
In his session at @ThingsExpo, Roger Meike, Distinguished Engineer, Director of Technology Innovation at Intuit, showed how IoT manufacturers can use open standards, public APIs and custom apps to enable the Quantified Small Business. He used a Raspberry Pi to connect sensors to web services, and cloud integration to connect accounting and data, providing a Bluetooth LE workflow, iBeacon-based time tracking, and sensor-driven invoices. The quantified small business will not only be possible; it will be the norm.

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Application Monitoring with @Chef | @DevOpsSummit #DevOps #Microservices

In a previous article, I demonstrated how to effectively and efficiently install the Dynatrace Application Monitoring solution using Ansible. In this post, I am going to explain how to achieve the same results using Chef with our official dynatrace cookbook available on GitHub and on the Chef Supermarket. In the following hands-on tutorial, we’ll also apply what we see as good practice on working with and extending our deployment automation blueprints to suit your needs.

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[slides] Running QEMU/KVM Virtual Machines | @CloudExpo #Cloud

At first adopted by enterprises to consolidate physical servers, virtualization is now widely used in cloud computing to offer elasticity and scalability. On the other hand, Docker has developed a new way to handle Linux containers, inspired by version control software such as Git, which allows you to keep all development versions.
In his session at 17th Cloud Expo, Dominique Rodrigues, the co-founder and CTO of Nanocloud Software, discussed how in order to also handle QEMU / KVM virtual machines versions, they have developed a new tool, called Vm_commit, which can create commits, backup any commit, rollback to a previous commit or rebase all the commits up to a given one for any running virtual machine, on the fly.

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Start up Cato Networks claims Network Security as a Service first

CybersecurityCheck Point founder Schlomo Kramer is launching a new cloud security firm with former Imperva colleague Gur Shatz as demand for traditional on premise firewall security diminishes. Cato Networks will offer a new cloud security concept that’s been dubbed Network Security as a Service (NSaaS).

The Cato Cloud has two complementary layers. One, the Cato Cloud Network, is based on a global, geographically distributed network of points of presence (PoPs). The second, Cato Security Services, is a suite of network security (such as firewalls, VPNs, URL filtering) delivered through the cloud as an integrated managed service.

Cato Networks’ software creates an encrypted network out of all the disparate elements of the connected enterprise, such as branch offices, remote locations, data centres and mobile users. The last two groups in that list have changed the model of security, according to Kramer, since the liquidity of the network has been exacerbated by the virtual nature of systems residing in data centres and the increasing prominence of mobile users. With new virtual machines being spun up in their thousands and mobile workers multiplying in both numbers and computing capacity, firewalls are not the right solution to this moveable vulnerability problem, according to Kramer.

The Internet of Things will only exacerbate security problems, according to a Cato Networks statement. Research commissioned by Cato showed that maintenance, costs and the complexity of managing policies for multiple locations is too challenging for up to 57% of security professionals.

Companies that use a variety of cloud services can tie their hybrid clouds into a secure network and forget about having to maintain firewalls or invest in expensive network security, according to Cato.

Cato would allow retail chains, which typically have hundreds of locations each with a multiplicity of devices, to securely connect directly to the cloud for Internet access.

Cato raised $20 million in financing led by Aspect Ventures and will launch its new cloud security offering around September 2016 with co-founder Kramer investing $4 million of his own money.

Google adds to its Cloud Platform as vendors compete with AWS Lambda

Google officeGoogle has added to its public cloud infrastructure for developers, Cloud Platform, with a new service that allows app writers to set up functions that can be triggered in response to events. The new Google Cloud Functions has drawn comparison with the Lambda offering from Amazon Web Services (AWS).

The service was not announced to the public, but news filtered out after documentation began to appear on Google’s web site, offering advice to developers. According to the briefing notes, Google Cloud Functions is a ‘lightweight, event-based, asynchronous’ computing system that can be used to create small, single-purpose functions in response to cloud events without the need for managing servers or programming in a runtime environment. Access to the service is available to anyone who fills out a form on the web site.

Google’s answer to AWS Lambda is the latest attempt to catch up with AWS by filling in the omissions in its own service. In September 2015 BCN reported how Google’s Cloud Platform is being sped up by the addition of four new content delivery networks, with CloudFlare, Fastly, Highwinds Network and Level 3 Communications adding to Google’s network of 70 points of presence in 33 countries as part of a new Google CDN Interconnect programme.

Google has also bolstered its cloud offering with new networking, containerisation and price cuts, BCN reported in November 2015. Google has also recruited VMware cofounder Diane Greene to lead all of its cloud businesses, as reported last year.

Google Cloud Functions run as Node.js modules and can be written in JavaScript. A response could be set up to react to, say, circumstances in a user’s Google Cloud Storage, such as an unwanted type of picture file or title. The service also works with webhooks, which contributes to a speeding up of programming processes and code maintenance.

The prices for Cloud Functions were not listed, as the service is still in Alpha mode.

Meanwhile a new start up, Iron.io, has raised $11.5 million in venture capital to develop its own answer to Lamba and Cloud Functions. Microsoft is also rumoured to be developing its own version of Cloud Functions for Azure, according to a report in Forbes.