|By Greg Ness||
|January 10, 2013 10:00 AM EST||
Over the last four years Archimedius has tracked the evolution of VMware from server virtualization leader to private cloud leader and the rise of Amazon as a public cloud leader. Earlier in December I predicted the rise of the hybrid cloud in 2012, and later discussed the implications in greater detail in Top Five Cloud Predictions. In short, I think that hybrid cloud promises to transform the way that enterprises and service providers deliver IT services, and the way that vendors develop and bring to market their products and services.
Over the next five years we will watch IT move from a feudalistic, hardware-bound model to a service and software-driven model, thanks in large part to the transformation of public and private clouds into hybrid clouds. That will shift enterprise investment into cloud computing and shift tech market valuations from the stable and hardware-enabled to the nimble, service and software-driven. Trillions in market capitalizations are at stake, based on the timing and breadth of this transformation.
VMware as a Tech Leader
One could certainly make the case that this recent transformation started with VMware and the advent of server virtualization, unless you want to go further back to the days when IBM introduced time sharing on mainframes. In late 2010 I speculated that VMware could be the Next Microsoft (or Netscape).
Yet 2013 promises to be a watershed year for several tech companies, from VMware, Cisco, Juniper, and Amazon to a wide range of service providers who have been traditionally viewed as niche or segment specialists. Let's start with VMware, who perhaps fueled the march toward software and service-defined IT.
VMware has been architecting itself deeper into the enterprise data center thanks to its powerful server virtualization technology and a series of smart partnerships, acquisitions and internal development strategies that have been paying off consistently since its 2007 IPO. Early last year VMware acquired SDN(software-defined networking) startup Nicira for more than $1 Billion. The rationale apparently offered by VMware execs to a respected analyst I dined with in November 2012: "engineering expertise."
VMware, Networking and the Cloud
I wrote about the emerging importance of networks with cloud computing in November 2008; see, for example The Beginning of the End of Static Infrastructure. That is why I think "engineering expertise" could be a carefully crafted understatement.
Let me offer an alternative answer: I think the team at VMware understands the role that networking and services will play in the evolution of virtualization in the data center and ultimately the hybrid cloud; it may be well on its way to extend from the private cloud into the hybrid cloud just as it extended from DevTest into production data centers in recent years. Part of this challenge is the economics and constraints of hardware-bound networking (in a software-defined cloud), the other are the core services required for apps to run across multiple environments (hybrid clouds).
With Nicira VMware gets an important part of the networking functionality needed to further enhance the ROI of virtualization in the data center, based on decoupling network functionality from dedicated (and often expensive) hardware. As mentioned before, VMware could do to networks what it did to once expensive and custom ASIC-centric server hardware.
Validating the threat and opportunity posed by software-defined data centers and networks, Cisco announced "spin-in" Insieme Networks last year and Juniper recently announced its acquisition of Contrail Systems. Both are important first steps to an equivalent of VMware's broad software-defined data center initiative, but they are still missing key components that VMware already has on board. You can read more about the software-defined threat and opportunity at Cisco's Golden Age or Fleece. HP made an OpenFlow Announcement early in 2012, but it is clearly grappling with "bigger picture" issues.
Higher up the OSI stack are critical capabilities related to hybrid cloud apps, services and storage technologies that promise to be hot in coming years. See the buzz, for example, around the December 2012 launch of (my employer) CloudVelocity. In the data center and shortly in the cloud, SDN could commoditize network hardware and make clouds more cost-efficient and easier to manage. Along with SDN come new solutions in 2013 that allow apps and services to be deployed across clouds (optimized across data centers) similarly to how VMware optimized apps and operating systems across server hardware. Payoffs also include devtest in the cloud (or cloud cloning) and cloud failover.
Amazon and the Public Cloud
As VMware advanced from its virtualization technology roots into the private cloud, Amazon, led by the brilliant Dr. Werner Vogels, has leveraged its operating strengths as an online retailer to become the undisputed leader in the public cloud. Recently it has added more features and functionality around enterprise workloads, positioning itself for broader enterprise appeal. Perhaps Amazon's only weakness at this point is its very public obsession with public cloud, to the detriment of its potential leadership in hybrid could development.
2013: The Year of the Hybrid Cloud
The pace and breadth of hybrid cloud adoption could have a significant impact on the fortunes of Amazon and VMware as well as a host of other technology companies, as discussed in Hybrid is a Whole New Cloud. Service providers who understand the cloud could outgrow and "outmargin" those who are trapped in colocation offerings locked into traditional, hardware-bound approaches to IT.
Hybrid cloud promises to drive the adoption of new architectures, new solutions and new capabilities in 2013 as venture-backed companies and even larger tech players introduce new cloud migration, cloning and failover solutions for multi-tiers apps. These solutions could reduce the barriers to cloud adoption by allowing apps to run across multiple environments, limiting their exposure to regional outages and even natural disasters. With that you get the notion of a boundless data center no longer confined by specialized hardware and bricks and mortar, optimized almost continuously. See a recent tech trade press prediction: 2013 The Year of the Hybrid Cloud.
The hybrid cloud offers VMware a strategic opportunity to flank Amazon's public cloud leadership by enabling enterprises to adopt lower risk and lower cost hybrid cloud operating models; ways of operating that would give them greater control over their applications across multiple cloud providers. In the case of a cloud service provider outage an enterprise could light up their apps and services in a new zone or with another provider; they are not dependent upon a single cloud provider's ability to deliver very high uptime.
Enterprises would be well advised to work with multiple cloud service providers and/or regions within a single provider as extensions of their data centers. A core promise of the hybrid cloud idea is to get away from a single point of cloud failure, which today is challenging.
While Amazon trumpets the public cloud (and reliance upon Amazon's great pricing and expertise), VMware offers a virtualization-standardized private cloud vision with dependence upon its platform. The question becomes: who steps up first to deliver on the hybrid cloud promise?
In 2012 Amazon also made some strategic hybrid cloud moves. But as of December 2012 they have remained steadfast in the future of the public cloud. 2013 promises to be a watershed year for both VMware and Amazon.
In addition to Amazon and VMware a host of other companies emerge as either service providers or critical solution providers. I mentioned several potential leaders in Hybrid Cloud is a Whole New Cloud.
Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is expected in the amount of information being processed, managed, analyzed, and acted upon by enterprise IT. This amazing is not part of some distant future - it is happening today. One report shows a 650% increase in enterprise data by 2020. Other estimates are even higher....
Jun. 26, 2016 05:00 PM EDT Reads: 1,300
SYS-CON Events announced today that Bsquare has been named “Silver Sponsor” of SYS-CON's @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. For more than two decades, Bsquare has helped its customers extract business value from a broad array of physical assets by making them intelligent, connecting them, and using the data they generate to optimize business processes.
Jun. 26, 2016 05:00 PM EDT Reads: 1,208
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, wh...
Jun. 26, 2016 04:30 PM EDT Reads: 948
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - comp...
Jun. 26, 2016 04:00 PM EDT Reads: 1,255
19th Cloud Expo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterpri...
Jun. 26, 2016 04:00 PM EDT Reads: 1,313
Connected devices and the industrial internet are growing exponentially every year with Cisco expecting 50 billion devices to be in operation by 2020. In this period of growth, location-based insights are becoming invaluable to many businesses as they adopt new connected technologies. Knowing when and where these devices connect from is critical for a number of scenarios in supply chain management, disaster management, emergency response, M2M, location marketing and more. In his session at @Th...
Jun. 26, 2016 03:00 PM EDT Reads: 974
It is one thing to build single industrial IoT applications, but what will it take to build the Smart Cities and truly society changing applications of the future? The technology won’t be the problem, it will be the number of parties that need to work together and be aligned in their motivation to succeed. In his Day 2 Keynote at @ThingsExpo, Henrik Kenani Dahlgren, Portfolio Marketing Manager at Ericsson, discussed how to plan to cooperate, partner, and form lasting all-star teams to change t...
Jun. 26, 2016 02:00 PM EDT Reads: 1,130
The cloud market growth today is largely in public clouds. While there is a lot of spend in IT departments in virtualization, these aren’t yet translating into a true “cloud” experience within the enterprise. What is stopping the growth of the “private cloud” market? In his general session at 18th Cloud Expo, Nara Rajagopalan, CEO of Accelerite, explored the challenges in deploying, managing, and getting adoption for a private cloud within an enterprise. What are the key differences between wh...
Jun. 26, 2016 01:00 PM EDT Reads: 799
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportuni...
Jun. 26, 2016 12:00 PM EDT Reads: 1,288
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo Silicon Valley Call for Papers is now open.
Jun. 26, 2016 12:00 PM EDT Reads: 1,109
There is little doubt that Big Data solutions will have an increasing role in the Enterprise IT mainstream over time. Big Data at Cloud Expo - to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA - has announced its Call for Papers is open. Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is...
Jun. 26, 2016 12:00 PM EDT Reads: 1,347
In his general session at 18th Cloud Expo, Lee Atchison, Principal Cloud Architect and Advocate at New Relic, discussed cloud as a ‘better data center’ and how it adds new capacity (faster) and improves application availability (redundancy). The cloud is a ‘Dynamic Tool for Dynamic Apps’ and resource allocation is an integral part of your application architecture, so use only the resources you need and allocate /de-allocate resources on the fly.
Jun. 26, 2016 12:00 PM EDT Reads: 1,086
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life sett...
Jun. 26, 2016 11:00 AM EDT Reads: 1,114
Machine Learning helps make complex systems more efficient. By applying advanced Machine Learning techniques such as Cognitive Fingerprinting, wind project operators can utilize these tools to learn from collected data, detect regular patterns, and optimize their own operations. In his session at 18th Cloud Expo, Stuart Gillen, Director of Business Development at SparkCognition, discussed how research has demonstrated the value of Machine Learning in delivering next generation analytics to imp...
Jun. 26, 2016 09:45 AM EDT Reads: 625
There are several IoTs: the Industrial Internet, Consumer Wearables, Wearables and Healthcare, Supply Chains, and the movement toward Smart Grids, Cities, Regions, and Nations. There are competing communications standards every step of the way, a bewildering array of sensors and devices, and an entire world of competing data analytics platforms. To some this appears to be chaos. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, Bradley Holt, Developer Advocate a...
Jun. 26, 2016 08:45 AM EDT Reads: 748
Cognitive Computing is becoming the foundation for a new generation of solutions that have the potential to transform business. Unlike traditional approaches to building solutions, a cognitive computing approach allows the data to help determine the way applications are designed. This contrasts with conventional software development that begins with defining logic based on the current way a business operates. In her session at 18th Cloud Expo, Judith S. Hurwitz, President and CEO of Hurwitz & ...
Jun. 25, 2016 03:00 PM EDT Reads: 1,616
SYS-CON Events announced today that ReadyTalk, a leading provider of online conferencing and webinar services, has been named Vendor Presentation Sponsor at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. ReadyTalk delivers audio and web conferencing services that inspire collaboration and enable the Future of Work for today’s increasingly digital and mobile workforce. By combining intuitive, innovative tec...
Jun. 24, 2016 01:00 PM EDT Reads: 1,361
Amazon has gradually rolled out parts of its IoT offerings, but these are just the tip of the iceberg. In addition to optimizing their backend AWS offerings, Amazon is laying the ground work to be a major force in IoT - especially in the connected home and office. In his session at @ThingsExpo, Chris Kocher, founder and managing director of Grey Heron, explained how Amazon is extending its reach to become a major force in IoT by building on its dominant cloud IoT platform, its Dash Button strat...
Jun. 24, 2016 12:00 PM EDT Reads: 1,653
industrial company for a multi-year contract initially valued at over $4.0 million. In addition to DataV software, Bsquare will also provide comprehensive systems integration, support and maintenance services. DataV leverages advanced data analytics, predictive reasoning, data-driven diagnostics, and automated orchestration of remediation actions in order to improve asset uptime while reducing service and warranty costs.
Jun. 22, 2016 11:00 AM EDT Reads: 1,371
Vidyo, Inc., has joined the Alliance for Open Media. The Alliance for Open Media is a non-profit organization working to define and develop media technologies that address the need for an open standard for video compression and delivery over the web. As a member of the Alliance, Vidyo will collaborate with industry leaders in pursuit of an open and royalty-free AOMedia Video codec, AV1. Vidyo’s contributions to the organization will bring to bear its long history of expertise in codec technolo...
Jun. 19, 2016 12:45 PM EDT Reads: 1,277