Category Archives: Private Cloud

Cloud computing, Featured, hybrid cloud, IaaS, IT Management, Journey to the Cloud, Private Cloud, Public Cloud

A Guide to Successful Cloud Adoption

Last week, I met with a number of our top clients near the GreenPages HQ in Portsmouth, NH at our annual Summit event to talk about successful adoption of cloud technologies. In this post, I’ll give a summary of my cloud adoption advice, and cover some of the feedback that I heard from customers during my discussions. Here we go…

The Market for IT Services

I see compute infrastructure looking more and more like a commodity, and that there is intense competition in the market for IT services, particularly Infrastructure-as-a-Service (IaaS).

  1. “Every day, Amazon installs as much computing capacity in AWS as it used to run all of Amazon in 2002, when it was a $3.9 billion company.” – CIO Journal, May 2013
  2. “[Amazon] has dropped the price of renting dedicated virtual server instances on its EC2 compute cloud by up to 80 percent […]  from $10 to $2 per hour…” – ZDNet,  July 2013
  3. “…Amazon cut charges for some of its services Friday, the 25th reduction since its launch in 2006.” – CRN, February 2013

I think that the first data point here is absolutely stunning, even considering that it covers a time span of 11 years. Of course, a simple Google search will return a number of other similar quotes. How can Amazon and others continue to drop their prices for IaaS, while improving quality at the same time? From a market behavior point of view, I think that the answer is clear – Amazon Web Services and others specialize in providing IaaS. That’s all they do. That’s their core business. Like any other for-profit business, IaaS providers prefer to make investments in projects that will improve their bottom line. And, like any other for-profit business, those investments enable companies like AWS to effectively compete with other providers (like Verizon/Terremark, for example) in the market.

Register for our upcoming webinar on 8/22 to learn how to deal with the challenges of securely managing corporate data across a broad array of computing platforms. 

With network and other technologies as they are, businesses now have a choice of where to host infrastructure that supports their applications. In other words, the captive corporate IT department may be the preferred provider of infrastructure (for now), but they are now effectively competing with outside IaaS providers. Why, then, would the business not choose the lowest cost provider? Well, the answer to that question is quite the debate in cloud computing (we’ll put that aside for now). Suffice to say that we think that internal corporate IT departments are now competing with outside providers to provide IaaS and other services to the business and that this will become more apparent as technology advances (e.g., as workloads become more portable, network speeds increase, storage becomes increasingly less costly, etc.).

Now here’s the punch line and the basis for our guidance on cloud computing; how should internal corporate IT position itself to stay competitive? At our annual Summit event last week, I discussed the progression of the corporate IT department from a provider of technology to a provider of services (see my whitepaper on cloud management for detail). The common thread is that corporate IT evolves by becoming closer and closer to the requirements of the business – and may even be able to anticipate requirements of the business or suggest emerging technology to benefit the business. To take advantage of cloud computing, one thing corporate IT can do is source commodity services to outside providers where it makes sense. Fundamentally, this has been commonplace in other industries for some time – manufacturing being one example. OEM automotive manufacturers like GM and Ford do not produce the windshields and brake calipers that are necessary for a complete automobile – it just isn’t worth it for GM or Ford to produce those things. They source windshields, brake calipers, and other components from companies who specialize. GM, Ford, and others are then left with more resources to invest in designing, assembling and marketing a product that appeals to end users like you and I.

So, it comes down to this: how do internal corporate IT departments make intelligent sourcing decisions? We suggest that the answer is in thinking about packaging and delivering IT services to the business.

GreenPages Assessment and Design Method

So, how does GreenPages recommend that customers take advantage of cloud computing? Even if you are not considering external cloud at this time, I think it makes sense to prepare your shop for it. Eventually, cloud may make sense for your shop even if, at this time, there is no fit for it. The guidance here is to take a methodical look at how your department is staffed and operated. ITIL v2 and v3 provide a good guide here of what should be examined:

  • Configuration Management
  • Financial Management
  • Incident and Problem Management
  • Change Management
  • Service Level and Availability, and Service Catalog Management
  • Lifecycle Management
  • Capacity Management
  • Business Level Management

 

Assigning a score to each of these areas in terms of repeatability, documentation, measurement, and continuous improvement will paint the picture of how well your department can make informed sourcing decisions. Conducting an assessment and making some housekeeping improvements where needed will serve two purposes:

  1. Plans for remediation could form one cornerstone of your cloud strategy
  2. Doing things according to good practice will add discipline to your IT department – which is valuable regardless of your position on cloud computing at this time

When and if cloud computing services look like a good option for your company, your department will be able to make an informed decision on which services to use at which times. And, if you’re building an internal private cloud, the processes listed above will form the cornerstone of the way you will operate as a service provider.

Case Study: Service Catalog and Private Cloud

Implementing a Service Catalog, corporate IT departments can take a solid first step to becoming a service provider and staying close to the requirements of the business. This year at VMworld in San Francisco, I’ll be leading a session to present a case study of a recent client that did exactly this with our help. If you’re going to be out at VMworld, swing by and listen in to my session!

 

 

Free webinar on 8/22: Horizon Suite – How to Securely Enable BYOD with VMware’s Next Gen EUC Platform.

With a growing number of consumer devices proliferating the workplace, lines of business turning to cloud-based services, and people demanding more mobility in order to be productive, IT administrators are faced with a new generation of challenges for securely managing corporate data across a broad array of computing platforms. 

 

hybrid cloud, IBM, M&A Activity, Private Cloud, SmartCloud, SoftLayer

IBM Acquiring SoftLayer for Private Cloud Infrastructure

IBM is acquiring SoftLayer, a privately held cloud infrastructure provider. IBM hopes SoftLayer will enable IBM to  marry the security, privacy and reliability of private clouds with the economy and speed of a public cloud, with Fortune 500 companies the target market.

IBM says the majority of the Fortune 500 have concerns about how cloud will work with the IT investments they have already made, and many have been waiting for a cloud that is better than “good enough.”   As a result, although cloud is growing quickly, it’s still only a small part of the total IT spend.  There’s a lot of opportunity for IBM to capitalize on.

SoftLayer has a breakthrough capability that provides an easy “on ramp” especially for the Fortune 500 to adopt cloud. And for the SoftLayer born-on-the-cloud customers, IBM opens a new market into the enterprise.   Specifically, SoftLayer allows cloud services to be created very quickly on dedicated servers — rather than a virtual ones, which is the norm in the public cloud.

By building out a cloud on a dedicated server , a client no longer has to worry about sharing computing resources with other companies — thereby improving privacy, security and overall computing performance.  By using dedicated servers, software that was built for on-premise use can be more easily ported to the cloud.  It doesn’t have to go though as much heavy configuration as it does with a virtual server, which it was not developed to work with.

This capability will be added to IBM’s SmartCloud portfolio. IBM SmartCloud offers 100 cloud-based solutions for line-of-business execs including Watson Engagement Advisor; hybrid solutions such as IBM PureSystems, mission-critical cloud services for SAP on our SmartCloud Enterprise+ and the best private cloud solutions in the market.

Headquartered in Dallas, SoftLayer serves 21,000 customers with a global cloud infrastructure platform spanning 13 data centers in the U.S., Asia and Europe. SoftLayer excels at running cloud-centric, performance-intensive applications in mobile, social, gaming and analytics.

IBM is also announcing today the formation of a new Cloud Services division that combines SoftLayer with IBM SmartCloud into a global platform, reporting to SVP Erich Clementi, IBM Global Technology Services.

Financial terms of the deal have not been disclosed and the acquisition is expected to close later in 2013 following standard regulatory review.

Forbes, Platform Services, Private Cloud, Research, Unisphere Research

How Common are Private Clouds? How About Enterprise Use of Public Cloud Services?

Joe McKendrick, who covers technology at Forbes, has good good coverage and analysis of a new survey (pdf) just published by Unisphere Research on adoption of cloud technology by corporations:

Close to two-fifths of organizations now run private clouds in one form or another, and one-fourth are using public cloud services in an enterprise capacity. Private clouds are being extended deeper into the organizations that have them — a majority expect to be running most of their workloads in the cloud within the next 12 months, especially Platform as a Service middleware.  In addition, close to one-third of public cloud users report they are employing hosted services to run their private clouds for them.

Read the full article.

Amazon AWS, IaaS, Larry Ellison, Oracle, Oracle Corporation, Private Cloud

Oracle Going Up Against Amazon with New Cloud Offerings

Oracle’s Larry Ellison once called cloud computing “Complete gibberish” but now Oracle is fully in the Cloud game with new announcements, which BusinessInsider covered in a story over the weekend.

There are two versions of Oracle’s new IaaS cloud. One is a “public cloud” similar to the kind of clouds offered by Amazon, Rackspace, HP, and others, where the hardware is located in Oracle’s data centers. It includes compute services and storage services, Ellison said.

The second is the so-called Oracle Private cloud, where a replica of Oracle’s public cloud is put in the customer’s own data center. Oracle would still own the hardware and be responsible for running it, securing it and updating it

Read the article.


Health care provider, Health insurance, Insurance, Jon Udell, Medical, Private Cloud

How a Personal Cloud Might Streamline Our Personal Business

Jon Udell in a post today in Wired Cloudline uses a story of his son’s car accident and hospitalization, and the related auto and health insurance issues, to paint a hopeful picture of how a “Personal Cloud” might, sometime in the future, simplify and streamline the flow of documents and bills.

What’s interesting is that instead of the usual ranting about the inefficiencies of various health care providers (doctors, hospitals, rehab clinics) and insurance payers (auto and health, he acknowledges that only he can be the “router” of documents for this single event.

His business relationship with particular providers and payers, combined with the event (an accident and subsequent treatment) makes him the only party uniquely able to be the traffic cop for data flow.

One View of the customer is a laudable business mantra. But a customer often engages with many businesses in the context of what is, from the customer’s point of view, one business process. It’s a decentralized game with many players, and the only referee is the customer. Only we can create the One View that we need. Today we do it the hard way, using phone calls and faxes and piles of papers on our desks, and we do it poorly. I’m hoping our personal clouds will enable us to do it easily and well.

He’s right. There’s no magic way to take these burdens off our shoulders. But the right technology could make it lighter and more efficient.

Read his post.


Cloud computing, Featured, hybrid cloud, Private Cloud, Saas

The Cloud is Dead! Long Live the Cloud! Twitter Chat Recap

Last week, Cloud Commons hosted a Twitter Chat on the end of Cloud Computing. If you’re not familiar with a tweetchat, they are discussions hosted on Twitter where people can join at a specific time by following a certain hashtag. The Cloud Commons tweetchats usually have around ten panelists and have been kicked off with a few thought-provoking questions. The participants then respond and share ideas in real time. The discussion is focused enough to be useful – 1 hour session, responses limited to 140 characters, but large enough to capture different perspectives.

This week’s tweetchat began with several questions:

  1. Adoption rates are rising for private cloud. Is this a stepping stone to hybrid/public cloud?
  2. What needs to happen before enterprises start to fully embrace cloud computing?
  3. What does the future model for enterprise cloud adoption look like?
  4. What should CSPs be doing more of to meet the needs of the enterprise?
  5. What needs to happen so that cloud becomes so ubiquitous that it’ll no longer be referred to as cloud? When will it happen?

The first question, “Is private cloud a stepping stone to hybrid/public cloud?” drew approximately 32 tweets. From the transcript, it appears as though participants in the marketplace are improving their understanding of cloud computing in terms of service and delivery models (private, public, hybrid, IaaS, PaaS, SaaS). The popular viewpoint was that private cloud is not exactly a stepping stone to hybrid/public cloud. A few tweets took the position that private cloud is seen as an alternate path to hybrid/public cloud. Many tweets indicated that IT departments want to retain tight control of their environment. Interesting tweet… “private cloud does not necessarily mean on-premises.” More on this later.

47 tweets in response to the second question, “What needs to happen before enterprises start to fully embrace cloud computing?” Overwhelmingly, the responses in this part of the chat were filled with terms like “services led,” “business value,” “SLA,” and “reduce FUD.” The responses to question 1 covered some territory here as well – enterprises will fully embrace cloud computing if and when they agree to give up some control of their infrastructure. There was an interesting tweet that mentioned transparency – “…it’s not always about control, as it is transparency.” We would argue that transparency is not needed here. To me, full transparency would require that the business is able to access minute detail about infrastructure, such as the amount of RAM installed on the application server that runs their slice of CRM at Salesforce.com. The business should be hidden from this kind of detail. Abstraction plays heavily here. So, we don’t need transparency as much as we need subtraction. What is an important concept that provides abstraction? You guessed it, Service Level Management. The GreenPages view is that processes need to improve before enterprises start to fully embrace cloud computing. See my earlier post, “What Should I Do about Cloud?” that goes in to much more detail on this topic.

I count about the same number of tweets in response to question 3 as I do question 2. Question 3 was a little more open-ended, so a critical mass of ideas never really took shape. The GreenPages’ view is that cloud computing will evolve to look like modern supply chains that can be seen in other industries, such as manufacturing. Enterprises may purchase IT Services from a SaaS provider, Salesforce.com for example. Salesforce.com may purchase its platform from another PaaS provider. That PaaS provider may purchase its basic infrastructure from an IaaS provider. Some value is added at each level, as the IaaS provider becomes more experienced in providing only infrastructure. The PaaS provider has an extremely robust platform for providing only a platform. The SaaS provider may ultimately become an expert at assembling and marketing these components into a service that provides value for the enterprise that ultimately consumes it. Compare this to the supply chain that auto manufacturers leverage to assemble a vehicle. In the early days of manufacturing, some companies produced every part of a vehicle, and assembled it into a finished product. I can think of one prominent example where the work to assemble a finished automobile took place in a single factory around the River Rouge in Detroit. Fast forward to present day, and you’ll be hard pressed to find an auto manufacturer who produces their own windshield glass. Or brake pads. Or smelts their own aluminum. The supply chain has specialized. Auto manufacturers design, assemble, and market finished vehicles. That’s about it. Cloud computing could bring the same specialization to IT.

Most tweets in response to question 4 were clearly around Service Level Management and SLAs, mitigating unknowns in security, and avoiding vendor lock-in. We agree, and think that a standard will emerge to define IT services in a single, consistent format. Kind of like OVF, the Open Virtual Machine Format, for virtualization. I can see an extension to OVF that defines a service’s uptime requirements, maximum ping time to a database server, etc. Such a standard would promote portability of IT Services.

Question 5 really went back to the topics discussed in question 3. When will enterprises embrace cloud? When will cloud computing become ubiquitous?

Right now, Corporate IT and The Business are two individuals living in a virtual “company town.” What I mean is that customers, (the business) are forced to purchase their services from the company store (corporate IT). GreenPages’ view is that there is a market for IT services and that emergence of cloud computing will serve to broaden this market. We recommend that organizations understand the value and costs of providing their own IT services in order to participate in the market – just like the business does. Overall, another insightful chat with some intelligent people!

Deloitte, Embotics, IT Management, Magirus, Private Cloud, Venture Funding, VentureLink LP

Embotics Gets $8.4 Million for Private Cloud Management

Image representing Embotics as depicted in Cru...

Private cloud management vendor Embotics Corporation today announced that it has closed $8.4 million in equity financing. Bringing Embotics’ total financing-to-date to $18 million, this latest round includes $2.5 million from VentureLink LP and $2.5 million from Covington Fund II Inc. (Covington), with the remainder of the funds coming from other private investors. Embotics will use the funding to accelerate global sales and marketing efforts, as well as to hire more software engineers.

This mix of pragmatic growth, strategic marketing and sales investments will build upon the momentum of the past year’s 300 percent growth in sales to further strengthen Embotics V-Commander’s leadership position in the private cloud management market.

“We continue to support Embotics because of its proven track record of successfully developing products that address the problems in virtual data center environments,” said Phil Reddon, managing partner of Covington. “Our experience investing in the virtualization sector, along with Embotics’ success in assisting companies with private cloud management, automation and self-service provisioning, make for a smart business and investment partnership between our two organizations.”

“We have a strong belief in Embotics and its virtualization and cloud management technology. Due to the market need for its solutions, we are confident that Embotics’ business will continue to grow,” said Jim Whitaker, managing partner of VentureLink LP. “Embotics’ clear differentiation in cloud management made its business and this opportunity very attractive to us.”

This round of financing comes on the heels of Embotics’ most successful year to date. The company has experienced 300 percent growth in sales over the past year and 220 percent year-on-year growth in new customers, which now include Bell, Deloitte, Cisco, CSC, Dutch Ministry of Defence, MITRE and numerous universities and public sector departments. In addition, Embotics has signed new channel partnerships, including one with Magirus in Europe.

“We are thrilled to continue our partnership with Covington and to begin our new relationship with VentureLink because of their proven success when it comes to supporting technology innovation,” said Jay Litkey, CEO of Embotics. “The significant increase in our sales demonstrates the opportunity that exists in the market. This financing will enable us to match that opportunity with clearly defined differentiation, corresponding sales and an increased engineering team to support new and existing customer opportunities.”


Amazon Web Services, AWS, AWS Marketplace, IT Management, Private Cloud, Saas, Software as a service

New AWS Marketplace Offers Pre-Configured Software for the AWS Cloud

Image representing Amazon Web Services as depi...

Amazon Web Services today launched AWS Marketplace, an online store that makes it easy for customers to find, compare, and immediately start using the software and technical services they need to build products and run their businesses. Visitors to AWS Marketplace can use 1-Click deployment to quickly launch pre-configured software and pay only for what they use, by the hour or month, while benefiting from the scalable, flexible and on-demand features of AWS. With AWS Marketplace, software and Software as a Service (SaaS) providers with offerings that run on the AWS Cloud can benefit from increased customer awareness, simplified deployment, and automated billing. AWS Marketplace features a wide selection of commercial and free IT and business software, including software infrastructure such as databases and application servers, developer tools, and business applications – available from popular vendors such as 10gen, CA, Canonical, Couchbase, Check Point Software, IBM, Microsoft, SAP AG, and Zend, as well as many widely used open source offerings including Drupal, MediaWiki, and WordPress. To get started with AWS Marketplace please visit: https://aws.amazon.com/marketplace.

AWS Marketplace simplifies many of the traditional challenges software and SaaS companies face, such as acquiring customers, developing distribution channels, and billing for their software. With AWS Marketplace, a simple listing process makes it quick and easy to add products and expose them to AWS’s hundreds of thousands of active customers. Product prices are clearly stated and charges appear on the same bill as a customer’s other AWS services. Customers can quickly deploy products found in the marketplace and software providers can easily add billing to their products by specifying hourly or monthly charges, without undertaking costly code changes. Billing is managed by AWS Marketplace, relieving sellers of the responsibility of managing customer accounts and processing payments, and leaving software developers more time to focus on building great software.

“AWS Marketplace brings the same simple, trusted, and secure online shopping experience that customers enjoy on Amazon.com’s retail website to software built for the AWS platform, streamlining the process of doing research and purchasing software,” said Terry Hanold, Vice President of New Business Initiatives, AWS. “AWS Marketplace makes it even easier to run software on AWS because you can find a wide variety of AWS ecosystem providers’ solutions, in one place, where much of the work involved in building and deploying solutions on top of AWS has already been done for you by these solutions providers.”

AWS is the leading cloud platform with a fast growing ecosystem of providers building solutions on top of the platform.

“Zend Application Fabric enables developers to confidently deploy fast, elastic and dependable PHP applications,” said Zend CEO Andi Gutmans. “AWS Marketplace makes it simple for our customers to access Zend on the AWS cloud and pay only for the infrastructure needed to run their applications. By providing customers a single invoice for combined software and server capacity, businesses can operate more effectively than ever before.”

“AWS Marketplace provides companies like ours an opportunity to easily reach new customers,” said Carolee Gearhart, SAP’s National Vice President of OEM & Strategic Partner Group for North America. “We expect our customers will benefit from SAP’s robust BI functionality, while taking advantage of the quick deployment capabilities provided by AWS Marketplace.”

Customers can browse AWS Marketplace or learn more details about its features and benefits of AWS Marketplace by visiting https://aws.amazon.com/marketplace.