Cisco has announced its intention to acquire Cmpute.io to help organisations get the most out of their multi-cloud deployments.

The acquisition, which is expected to close in the second quarter of Cisco’s 2018 fiscal year, was announced on Cisco’s blog, with Rob Salvagno, head of Cisco’s M&A and venture investment team, writing that the addition of Cmpute.io’s technology will “help customer optimise their cloud consumption to ensure optimal business value.”

Longer-term industry watchers may remember Cmpute.io in its previous life as Batch.ly. The company offers four paths to cloudy application optimisation; instance right sizing, putting instance types with the right application based on performance; cost and time saving; as well as availability, automatically balancing application workloads across instance categories.

This is by no means the first cloud-based buy made by Cisco this year. 2017 has seen the acquisition of SD-WAN provider Viptela, for $610 million back in May, while October saw $1.9 billion splashed out for cloud collaboration provider BroadSoft.

The importance of managing multi-cloud environments continue to be a hot button issue for organisations. A research study from BMC Software released last month found that for the majority of IT decision makers polled, current multi-cloud management approaches needed rethinking.

According to the research, cost optimisation was the most popular reason to go multi-cloud, ahead of increased agility and risk mitigation. “With a multi-cloud strategy, customers need to budget, buy, and consume differently,” added Salvagno.

Financial terms of the deal were not disclosed.

If you want to appreciate the full extent of the cloud computing phenomena, then you need to comprehend the ongoing impact to the IT ecosystem. It's been fueled by a disruptive series of innovations that have enabled software developers to accelerate the speed of digital transformation.

The cloud delivery and consumption model has revolutionized the entire IT industry. But the cloud opportunity extends well beyond the public cloud – which makes up less than half of all cloud-related spending today – and includes private and hybrid clouds, as well as managed cloud services, cloud-related professional services, and hardware and software infrastructure for building clouds.

Cloud computing market development

In its first forecast of the 'whole cloud' opportunity, International Data Corporation (IDC) estimates that worldwide whole cloud revenues will reach $554 billion in 2021 – that's more than double those of 2016.

"The most obvious takeaway from this forecast is that the shift to the cloud consumption model – in all its forms – is a mass movement, and will continue to be such over the forecast period," said Frank Gens, senior vice president and chief analyst at IDC.

The past few years have produced a steady stream of innovative new services introduced by the major public cloud service providers, including blockchain services, IoT back-end data services, encryption services, serverless computing services, and even new computing hardware services.

IDC expects the pace of innovation on public clouds to continue and, more likely, to accelerate. Similarly, IDC expects to see a steady expansion of enterprise workloads on the cloud as cloud service providers and their partners focus on new deployment scenarios for these workloads.

Despite lingering concerns about security, vendor and technology lock-in, and interoperability, IDC believes that cloud computing will continue to dominate and transform enterprise computing for years to come.

Key highlights from the IDC forecast include:

In 2016, public cloud services accounted for 41 percent of all cloud-related spending. By 2021, this figure will increase to 48 percent. And, when spending on hardware and software that enables public cloud services, and managed and professional services around the cloud are included, these figures rise to 65 percent and 68 percent, respectively.

Spending on managed and professional services around cloud adoption are, collectively, the second largest opportunity in the whole cloud market, accounting for 31 percent of all cloud-related spending in 2016 and 2021.

The hyperscale datacenters operated by cloud service providers are dramatically altering the market for infrastructure hardware and software. By 2021, cloud service providers will account for 76 percent of cloud-related infrastructure hardware and software spending.

Artificial intelligence, virtual reality, software-defined networking, Hyperconverged Infrastructure, the cloud. These are all technological advancements intended to improve how IT systems and operations work, to give the business better agility and reduced costs, and ultimately to give end-users a new and better experience.  Quite often, however, IT’s creators and consumers alike lose sight of the […]

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