Asia Pacific organisations facing ‘cloud chasm’ as maturity struggles, IDC warns

The vast majority of Asia Pacific organisations remain early in their cloud maturity according to IDC – with either ‘ad hoc’ or ‘opportunistic’ initiatives the order of the day for now.

The findings appear in the analyst firm’s latest IDC MaturityScape Benchmark, for Asia Pacific nations excluding Japan, and show that while progress is slow, moves are being made. More than 20% of organisations have moved from ‘ad hoc’ to ‘opportunistic’ over the past two years, yet more than two in five (42.7% and 42.5% respectively) remain there.

Only 10% of organisations are in the next phase, ‘repeatable’, with 4% and 0.7% respectively in the further advanced ‘managed’ and ‘optimised’ brackets. The latter stages are where organisations have their cloud initiatives at an industrial level and, at the highest stage, being able to deliver innovation and transformation.

Yet moving from exploration and collaboration to innovation and transformation requires significant investment in technology, tools, processes and skills, with many of the skills and resources located in large enterprises and IT service providers.

As a result, cloud adoption requires faster time to value and agility. “Speed and agility has become the key drivers for cloud adoption. More organisations in Asia Pacific are adopting a cloud-first strategy such that cloud infrastructure has now become a preferred option for IT modernisation,” said William Lee, IDC Asia/Pacific cloud services research director.

“Organisations need more consistent, standardised, and available automated cloud resources to enable developers and LOB teams to execute at speed and cost,” Lee added. “Workloads portability and application delivery across multiple clouds will be key to build a robust cloud services delivery platform for agility.”

According to the most recent report from the Asia Cloud Computing Association (ACCA) back in April, Singapore has overtaken Hong Kong as the most cloud-ready Asia Pacific nation. New Zealand, Japan, and Taiwan rounded off the top five.

One nation which continues to struggle in the ACCA analysis, however, is China. Despite IDC saying in February that the country will be the biggest public cloud spender in Asia Pacific aside from Japan, and despite the dominance from Alibaba in the Asia Pacific public cloud market, the country was placed at #13 out of 14 nations. At the time, the report stressed broadband quality and connectivity as its key weaknesses, recognising the difficulty in connecting such a large territory.

The cloud skills gap can be tamed – as an example from telecoms shows

Opinion There’s no denying that firms out there are experiencing a cloud skills gap.

Of course, with new technology, there logically follows a learning curve for the workforce at the coalface and the future workforce in training to traverse. But what I am suggesting is that this skills gap is not being found across the board. In fact, many firms were poised to move with the curve and are already benefiting from this thriving new market.

In the telecoms sector, for example, we’re seeing a different picture from elsewhere – and the cloud phenomenon has been a very positive movement.

For starters, due to the surge in demand for skilled workers, a whole new stream of opportunities for firms like ours to work with cloud providers has opened up. And our engineers are perfectly placed to transfer their skills into this new arena as the fundamental skillsets required of them remain in the cloud era.

We have always prioritised continuous learning at Exchange Communications as a matter of course and, as such, any peripheral training which supports our cloud partnerships is also being carried out as a matter of course. Thanks, then, to our adaptability and desire to explore this exciting new field, we’ve successfully diversified our services and positioned ourselves as an expert partner for the delivery of third party cloud solutions like ACS Select.

We’re very much moving with the curve and we’re proud to be working with global leaders Avaya and BT Wholesale on delivering innovative cloud-based solutions.

ACS Select represents the next generation of Avaya cloud solutions and will optimise communications for a range of leading business entities throughout the UK. And with such exciting projects out there, our teams are energised and eager to grow our cloud business streams. The cloud is very much the future for telecoms too.

It is important to remember that technology by its very nature is always evolving and with all major technological developments, there are nuances to consider.

Matters of cloud security and compliance have been very much in the spotlight, especially in the shadow of GDPR. However, I believe in every challenge there lies an opportunity. I dispute that there is a universal skills gap and where firms do experience gaps which is negatively impacting their bottom line, there are third party solutions out there that are worth considering to reduce the deficit. Firms can also take positive steps to retrain existing staff, recruit new people with new cloud skills, or use external partners to ease the burden to take action to close the gap quickly.

Microsoft sees it all come together in financials as Azure revenues go up 89% year on year

It’s becoming a rather shop-worn tale – but for another quarter, Microsoft has cited cloud success as key to its financial results.

And why not? For Q418, Microsoft posted revenues of $30.1 billion (£23.1bn), an increase of 17% on this time last year. Total revenue for the year was $110.4bn, an uptick of 14% on 2017. For the various buckets into which Microsoft divulges its revenues, ‘intelligent cloud’ was at $9.6bn – up from $7.8bn the previous year – while ‘productivity and business processes’ saw a 13% rise to $9.7bn.

As ever, Microsoft does not disclose revenues for individual products, but instead gives a ballpark figure of their improvement. Azure was the big winner, going up 89% year over year, while revenue in server products and cloud services – a part of the ‘intelligent cloud’ bucket – went up 26%. LinkedIn revenues went up 37% year on year, with sessions growth rising 41%, while Office commercial products and cloud services revenue went up 10%.

Fielding an analyst question in the earnings call, CEO Satya Nadella said there were a variety of accelerants for Azure, from AI services requiring storage and data, to tier one workloads.

“Our hybrid value proposition really has continued to resonate,” said Nadella. “So that means there’s a bunch of workloads that are migrating to the cloud – people use Azure Stack plus Azure. So that continues to drive a lot of IaaS growth for us as people are looking basically to lift and shift a lot of their current data centre workloads.”

Nadella added in prepared remarks that the results reflected his vision towards an intelligent cloud and intelligent edge, from team reorganisation to product execution.

“Our opportunity has never been greater,” he said. “We will continue to innovate and invest across our solution areas in serving our customers and their unmet and unarticulated needs.

“With this tremendous opportunity comes great responsibility. We’re relentlessly working to instil trust in technology across everything we do.”

Highlights for Microsoft in the most recent quarter included data centre expansion, first in Germany, Switzerland and the United Arab Emirates, as well as Australia and New Zealand, as well as the general launch of Azure Kubernetes Services (AKS). Most recently, Walmart signed a five year strategic deal to use many of Microsoft’s cloud services.

You can take a look at Microsoft’s full financial report here.

Salesforce in fresh row over US immigration policy after $250,000 donation is rejected


Keumars Afifi-Sabet

20 Jul, 2018

Salesforce faces boycott fears for its work with the US Customs and Border Protection agency (CBP) after a nonprofit immigration advocacy group rejected its $250,000 donation.

Less than a month after the company was criticised for its work with the CBP, company executives offered the Refugee and Immigration Center for Education and Legal Services (RAICES) a hefty donation – only for the Texas-based advocacy group to reject the money.

More than 650 Salesforce employees urged their CEO Mark Benioff in June to review the company’s involvement with CBP in light of its role in separating families at the border.

But the company defended its work with the agency, predominantly involving products such as Community Cloud and Service Cloud to modernise recruitment and engage with citizens, saying it was “not aware of any Salesforce services being used by CBP for this purpose”.

Benioff later confirmed the company would not be making any changes to its work with CBP, but would by committing $1 million to help families affected by the separation policy.

After pledging $250,000 to RAICES, the organisation said it would only accept the money if Salesforce cancelled its work with CBP. The immigration advocacy group told Salesforce that “when it comes to supporting oppressive, inhumane and illegal policies, we want to be clear: the only right action is to stop” in an email exchange seen by Gizmodo.

RAICES’ stance echoes that of 22 Salesforce customers who also this week called for the cloud computing company’s CEO to “cut your contract” in an open letter that stated donations are not enough.

“We are nonprofits, startups, and businesses that are Salesforce’s customers. The tools that Salesforce provides helps us achieve our mission,” the letter read.

“However, we are absolutely appalled that Salesforce is providing assistance to government agencies that are violating human rights. We cannot, in good conscience, ignore this issue.

“We have seen that Salesforce has spoken out against the government’s inhumane practice of separating and detaining children.

“We appreciate that and the donation they have pledged to make to affected families. But that is not enough. As long as Salesforce keeps its contracts with Customs and Border Protection, they are still enabling the agency to violate human rights.”

Cloud Pro approached Salesforce for comment but did not rely at the time of writing. 

Cloud and analytics help IBM exceed expectations


Clare Hopping

20 Jul, 2018

IBM’s strategic imperatives division, which includes its cloud, analytics, mobile and security technologies has contributed half of the company’s revenues in the last 12 months, according to Big Blue’s latest financial results – a significant increase compared to previous years.

Security revenues experienced the highest levels of growth in the second quarter of 2018, up 81% year-on-year, but cloud came in second with a 20% rise year-on-year. Analytics revenues increased by 7% and mobile revenues were up 5% during the last quarter.

But it was the cloud part of IBM’s business that experienced mammoth gains over the entire 12 months, growing by 23% and totalling revenues of $18.5 billion. $8.2 billion of this was raked in from the company’s hardware, software and services to offer customers hybrid cloud solutions across multi-cloud, private and public cloud services.

This is a significant step for the tech giant, marking its third consecutive period of growth, before which it suffered losses for a period of five years. Total revenues for the third quarter rose 4% across the company’s entire business, which would suggest IBM’s fortunes are on the up.

“After years of revenue declines, IBM is poised to return to sustainable, if modest, revenue growth and mid-single-digit EPS growth,” analyst firm Stifel wrote in a note earlier this week.

The company has made some intelligent business decisions over the last year, including the purchase of Oniqua and streamlining of its Watson workforce, which saved some costs.

“While this may be anecdotal, we attended a major healthcare IT conference this spring, and informal conversations with Watson Health employees suggested that the business is beginning to feel a lot more cohesive and integrated than previously,” Stifel added.

Assessing just how safe you are in the cloud – and three tips to secure your business data

Each day, Internet users generate an average of 2.5 quintillion bytes of data, according to recent research from Domo. Per minute, The Weather Channel receives more than 18 million forecast requests, Netflix users stream almost 70,000 hours of video, and Google conducts 3.5 million searches.

90% of all data available today was created in the last two years. As a result, an ever-increasing amount of enterprise data is being stored in the public cloud, both exclusively and hybrid. But it seems not everything is as smooth as we want it to be in the paradise. There have been various cloud horror stories that forced us to think: how safe are we in the cloud?

Remember when hundreds of companies exposed PII as well as private emails (including confidential business emails) to the world through Google Groups back in 2017. A small settings error was to be blamed for such a massive data leakage and companies like Fusion Media Group, IBM's Weather Company, Freshworks, and SpotX etc. were affected by this security issue.

In another incident, Stanford University too suffered, not once, but in three separate data breaches. The data security breaches, which was caused by “misconfigured permissions” exposed not only personal employee information (including their salary information and Social Security numbers) but also student sexual assault reports and confidential financial aid reports. In fact, there are many such cloud data security horror stories, enough to give you nightmares.

The cloud is dangerous

It is true that cloud environment offers the benefits of flexibility, availability, and low costs etc. But at the same time data storage in the cloud is becoming an increasing concern for anyone who use file storing and data sharing tools like Google Drive, Dropbox, Microsoft OneDrive, Amazon Drive, and the likes, when it comes to keeping their information private.

Data in the cloud is stored in an encrypted form, meaning they are encoded with a specific encryption key without which the stored files look like gibberish. A hacker needs to crack these keys to read the information. The most important factor, therefore, is: Who has the key? And this factor is often responsible for most data security breaches.

In most cases, the commercial cloud storage systems keep the key themselves so that their systems can see and process user data. Moreover, these systems can access the key as a user logs in using his/her password. While this is perhaps the most convenient way for cloud storage systems, it is also less secure. Any flaw in the service provider’s security practice can leave the users’ data vulnerable. Dropbox, for example, has been severely criticized for its security and privacy controversies.

Again, there are some cloud services that allow users to upload and download files only through service-specific client applications, which also include encryption functions. These service providers allow users to keep their encryption keys themselves and are therefore a bit more secure than the others; however, they aren’t perfect and there are chances that their own apps might be hacked and compromised, allowing the intruder to access your files.

How to protect yourself and your data

While there is no way you can ensure that your information is safe on the cloud, there are some protective measures that you can take to deal the issue of cloud privacy. Here are 3 data protection tips to reduce the risk of your cloud experience.

1. Encrypt your data and use encrypted cloud services

As mentioned earlier, cloud storage services that offer local encryption and decryption of data alongside storage and backup are safer options than those who keep the encryption keys to themselves. Spideroak, for example, has a “zero-knowledge” privacy policy, meaning neither the service providers nor server administrators have access to your files. Similarly, use virtual private networks that keep your information encrypted and hidden from intruders and do not store or track your data when you use their services. This ExpressVPN review, for instance, explains how the company has a strict “No Logging” policy to ensure an optimal user experience.

In addition, to add an additional layer of security to your files, you can encrypt your data before uploading them onto the cloud. There are many software that allows you to encrypt you file and make them password-protected before moving them to the cloud.

2. Backup your data locally

Always have electronic backups for your data so that you can access them even if the one on the cloud gets lost or corrupted. You can either keep it in an external storage device or in some other cloud storage. However, the former is perhaps a better option as you can access them even without Internet connectivity.

In addition, avoid keeping your sensitive information such as passwords, Social Security number, credit/debit card details, banking information, or even your intellectual property like patents and copyrights etc. in the cloud. These kind of information, if compromised, can result in potential data leakage.

3. Have strong passwords

Although you might have heard this before, making your password stronger is perhaps one of the best ways to safeguard your files stored in the cloud. Even the U.S. government has revamped its password recommendations. The days of picking your favorite phrase as your password and replacing a few characters with symbols are practically over. Also, stop doubling your one password for other services.

Instead, choose long, weird string of words as your password and add a combination of special characters, some capital letters, or numbers to make it stronger. Most data leakage happen due to easy to guess passwords. If required, test if your password on the safety of your computer. Another good practice is to change your password is every 90 days or less. This practice will also help you keep the internal intruders away, thus avoiding workplace breaches.

Conclusion

Keeping your data safe on the cloud is all about remaining secure, vigilant and resilient. Have a multi layered data security system in place and continue monitoring to ensure your systems are still secure. However, if you still feel your data is under threats of breaching, take control and quickly address the issue to recover before it causes a havoc. Don’t just rely on your cloud service providers’ security assurances. Always have your own security measures in place from the beginning. After all – it is better to be safe than sorry.

Microsoft rakes in $30.1bn thanks to strong cloud growth yet again


Roland Moore-Colyer

20 Jul, 2018

Microsoft has reported strong revenue results in its 2018 fourth quarter financial results, unsurprisingly thanks to growing its cloud sales.

The Redmond company raked in $30.1 billion in total revenue for the quarter, a 17% increase over the same quarter 12 months earlier, with the company netting more than $8 billion in profit.

A large part of that revenue hike was driven by the 23% growth Microsoft’s cloud business enjoyed, bringing in $9.6 billion for the company.

“Our early investments in the intelligent cloud and intelligent edge are paying off, and we will continue to expand our reach in large and growing markets with differentiated innovation,” said Microsoft chief executive Satya Nadella.

Redmond boasted customers such as Marks & Spencer, General Electric, Starbucks and Telefonica as users of its cloud services, helping fuel its growth.

And that growth is likely set to continue as Microsoft also revealed a strategic partnership with Walmart, which will see the US retail giant make use of Microsoft Azure and the Microsoft 365 suite across its entire enterprise.

With a plethora of large businesses adopting digital transformation doctrines, whereby they shift from legacy IT systems to cloud-based services and make deeper use of digital systems and data, and Microsoft offering the second largest cloud platform in the world, it is no surprise that cloud is driving Redmond’s business success.


Managing your organisation’s data in a hybrid and multicloud world is critical to digital transformation success. Learn more in this whitepaper.

Download now


That being said other areas of Microsoft are also enjoying growth, notably its More Personal Computing arm, which includes the Surface and Xbox hardware and services, that grew by 17% to haul in $10.8 billion.

Refreshed models of the Surface Pro line up and the release of the Surface Go are likely to help keep the More Personal Computing arm ticking along in hardware revenue, especially now that PC sales seem to be growing again for the first time in six years.

Microsoft closed out its entire fiscal year with a record-breaking $110 billion in total revenue, a 14% rise on the year before and an indicator that Microsoft is in rude health. 

Image credit: Microsoft 

Google’s Loon project delivers internet to Kenya – via balloon


Clare Hopping

20 Jul, 2018

Google’s Loon internet service that aims to deliver high-speed internet to rural areas has signed its first commercial agreement, partnering with Kenya’s Telkom network.

The connection will be delivered by high altitude balloons that float 20km above sea level. They’re designed to deliver internet connectivity to low density populations, where it’s just not financially viable to install traditional underground cabling and other permanent lines to properties.

The balloons are essentially floating cell towers, utilising a provider’s 4G/LTE service to a user’s existing device. They’re powered by solar panels, so can just float continuously and will rarely need to be taken out of service.

“We are extremely excited to partner with Telkom for our first engagement in Africa,” said Loon CEO Alastair Westgarth. “Their innovative approach to serving their customers makes this collaboration an excellent fit. Loon’s mission is to connect people everywhere by inventing and integrating audacious technologies. We couldn’t be more pleased to start in Kenya.”

However, some critics have suggested the partnership will lead to a monopoly in Kenya, dominating the internet market and warning those most affected will be the consumers.

“Once these networks are in place, and dependency has reached a critical level, users are at the mercy of changes in business strategy, pricing, terms and conditions and so on,” Ken Banks, an expert in African connectivity, and head of social impact at Yoti told the BBC.

“This would perhaps be less of a problem if there’s more than one provider – you can simply switch network – but if Loon and Telkom have monopolies in these areas, that could be a ticking time bomb.”

Loon and Telkom plan to launch the internet service next year (although this is subject to regulatory approval) and Telkom’s boss Aldo Mareuse explained the telecoms business is committed to rolling out the service as quickly as possible.

“Telkom is focused on bringing innovative products and solutions to the Kenyan market,” he said. “With this association with Loon, we will be partnering with a pioneer in the use of high altitude balloons to provide LTE coverage across larger areas in Kenya. We will work very hard with Loon, to deliver the first commercial mobile service, as quickly as possible, using Loon’s balloon-powered Internet in Africa.”

IBM and SAP’s cloud financials continue to impress – but bigger hitters still to come

IBM has delivered its third consecutive quarter of growth – with cloud revenue up 20% and now representing almost a quarter of the company’s total revenue.

The company posted total revenues of $20 billion (£15.4bn) for the most recent quarter, up from $19.3bn this time last year, with six month revenues of $39.1bn, compared with $37.4bn from the year before.

Alongside cloud – which has hit $18.5bn in revenue over the past 12 months – IBM cited AI, analytics, blockchain and security as key strengths to its ecosystem. On the earnings call, Jim Kavanaugh, SVP and chief financial officer, told analysts that IBM was exiting the quarter with ‘as a service’ annual run rate of more than $11bn.

“This reflects our success in helping enterprise clients with their journey to the cloud and we’re becoming the destination for mission-critical workloads in hybrid environments,” said Kavanaugh. “We’re capturing this high-value growth with our unique differentiation of the innovative technology combined with deep industry expertise underpinned with trust and security, all through our integrated model.”

Among IBM’s cloudy highlights in the past quarter include a partnership with CA Technologies for the mainframe side, as well as European expansion. The latter was a momentum announcement with IBM having secured several Europe-based customers, including those in healthcare, logistics, and energy.

Meanwhile, SAP’s results saw cloud and software revenue going up to €4.94bn (£4.1bn) in Q218, up from €4,76bn this time last year – and the company has raised its ambitions for 2020 as a result.

At the start of this year, the company praised ‘stellar cloud bookings’ in Q417 causing them to reiterate its 2020 vision. By 2020, the company is aiming for non-IFRS cloud subscriptions and support full year revenue at a top point of €8.5bn, and ‘more predictable revenue’ – cloud support and software support revenue – to be between 70% and 75%.

Now, the company expects a top point of €8.7bn, with CEO Bill McDermott saying the company is presenting a ‘clear strategy’ and that raised guidance shows a ‘new wave of growth has been unleashed.’

“The fourth generation of enterprise applications has taken another major step forward with [in memory suite] C/4 HANA. Together with S/4 HANA, SAP customers are finally able to focus their entire business on delivering a personalised experience to their customers,” said McDermott. “The intelligent enterprise is the elixir to bridge silos inside fractured businesses and beyond so CEOs get a single view of the customer.”

Among the company’s highlights in the previous quarter included the launch of SAP’s Digital Manufacturing Cloud, helping manufacturing providers to deploy Industry 4.0 technologies in the cloud.

While these figures are impressive in isolation, it is worth noting that Alphabet, Amazon, and Microsoft are all declaring in the next week. According to Synergy Research, Amazon Web Services (AWS) leads across all geographies, with Microsoft second and Google third. The only exception is in APAC, where Alibaba secured the silver medal position.

You can read the IBM report here and the SAP report here.

The data centre of tomorrow: How the cloud impacts on data centre architectures

As the enterprise world continues speeding towards complete digitization, technologies like cloud and multi-cloud are leading the charge. Yes, cloud offerings like Amazon Web Services (AWS), Microsoft Azure, and Google Cloud are changing the way enterprises consume IT resources. Having cloud-grade infrastructure at an enterprise’s fingertips opens up opportunities that simply did not exist before.

But are the effects of cloud limited to a collection of somewhat ephemeral infrastructure residing in someone else’s data centre? Or does cloud carry with it the power to change owned infrastructure as well?

The cloud’s impact on data centre architectures

Perhaps the most basic impact of the rise of cloud and multi-cloud is the effect on data centre architectures. In years gone by, enterprise data centres were sprawling collections of sometimes eclectic equipment deployed in support of point applications or use cases. With each new turn that the business took, the data centre was forced to bob and weave.

It’s understandable then that devices with robust sets of capabilities dominated. When IT cannot predict the next requirement, there are only two possible paths forward: deploy devices that support as much as possible, and when that fails, deploy snowflakes purpose-built for narrow use. 

But the cloud doesn’t work this way. Amazon, Microsoft, Google, and the others cannot build bespoke infrastructure for the varying application needs of their users. Doing so would utterly destroy the economies of scale that come from shared infrastructure. Rather, they must design the data centres that power their cloud offerings in such a way that they are robust in capability but uniform in design. Without resource fungibility, there simply is no cloud.

And so data centre designs have changed, favoring commonality over uniqueness. Modern data centres are not a mix of different shapes and sizes. They are a uniform fabric of fixed-form-factor devices, deployed explicitly because they are interchangeable. Servers and storage have long been in this mode. 

More recently, even the network devices that provide connectivity have moved this direction. Built on merchant silicon, these “pizza boxes” (so named because they are thin) are deployed in non-blocking architectures. When something fails, traffic is routed around it, and the device is replaced with an identical copy. 

Within the data centre, this means that racks and rows ought to begin to look identical. Where diversity served the legacy data centre well, it is the enemy of efficiency in the cloud era. This simplifies things like deployment and management, allowing for finer-grained grow-as-you-go strategies. It also makes space, power, and cooling a much more straightforward activity. When devices are the same, planning is reduced to understanding capacity requirements and physical constraints. 

Moving from device-led to operations-led

Ultimately, the cloud is probably more about operations than devices. Historically, data centres have been architected from the devices up. That is to say that things like capacity requirements drive what boxes are required, which then determine what operators must do.

The currency of cloud and multicloud, though, is not capacity so much as it is agility. And this means that physical devices must assume a supporting role while operations steps to the front.

As enterprises look to learn from the cloud movement, they should conclude that operations are the starting point. Enterprises that are not efficient in how they manage their infrastructure will be at a perpetual competitive disadvantage to those companies that have adopted cloud practices to drive their business. 

Operations certainly involve technology movements like automation, telemetry, and DevOps. But enterprises looking to become more efficient need to start with their physical infrastructure.  The enemy of fast is complexity, which means that enterprises need to be taking every opportunity to reduce complexity in their operating environments. One of the easiest ways to make progress here? Eliminate infrastructure sprawl. 

Because most data centres evolve organically over time, they are a collection of different devices. The more different they are, the more diverse the operational model must be. Every unique platform running every unique version of software configured for every unique feature is ultimately making the data centre more diverse. That diversity is an efficiency killer. 

Maintaining economic leverage

While one conclusion to draw here is that a single supplier can help drive data centre evolution, the reality is that enterprises will ultimately want to maintain economic leverage. Indeed, there are no benevolent rulers in IT, and a single-vendor approach to the data centre is likely to wreak long-term economic havoc. 

Instead, enterprises should be architecting their data centres for a common set of functionality that can be offered over two or more supplier solutions. By maintaining interchangeability across vendors, enterprises will find that their procurement teams can reap rewards even as their operation centres rejoice. 

This, too, has implications on the physical data centre. Understanding the underlying merchant silicon that drives solutions will allow architects to steer their designs towards common building blocks available across the industry. Adopting white box servers, for instance, enables things like common sparing, which helps improve repair times and maintain consistency of deployment. In the network realm, standardising on connectivity (25GbE to the server, as an example) allows enterprises to settle on common optics and cabling as well. Anything that drives uniformity will ultimately help the bottom line.

Process dominates

It is certainly true that the data centres of the future will converge on a fairly narrow set of architectural principles. But enterprises that really want to ride the wave of cloud and multicloud will need to evolve their overarching processes as well. 

Where most enterprises today are skilled at deploying new equipment, they struggle at decommissioning aging gear. For example, most enterprises have network refresh cycles of seven years or more. This means that a data centre will have seven years’ worth of equipment in it, built with varying components and supporting varying capabilities. 

Compare that with cloud companies that refresh their hardware every two to three years. It is tempting to argue that the cloud properties have more available spend, making this practice more economically palatable. But the driver behind this practice is actually the same efficiencies that enterprises want within their IT environments. 

By reducing operational divergence, cloud companies make themselves dramatically more efficient operationally, allowing them to grow their capacity exponentially while maintaining their current IT teams at or near current staffing levels. This allows them to divert operational spend back into their capital expenditures, helping maintain this aggressive refresh cycle. And as they deploy newer equipment, they can take advantage of increased scale and performance of newer platforms, frequently adding more capacity at lower per-unit prices.

Perhaps more importantly, these operational efficiencies allow teams to spend less time doing break-fix activities and more time driving value to the business. How much is it worth for an enterprise to be more automated? Or to have better documentation? Or to have robust automated testing? None of these happen when teams are maxed out merely maintaining existing infrastructure.

The bottom line

Data centres are at a point where they simply must evolve. The rise of common building blocks built on standard components has changed the way enterprises plan, build, and operate. By combining these principals with important shifts in both operations and refresh cycles, enterprises can apply the principles of cloud to their owned infrastructure, allowing for dramatic improvements in both utility and efficiency.

The cloud news categorized.