{"id":13677,"date":"2018-10-25T11:00:21","date_gmt":"2018-10-25T19:00:21","guid":{"rendered":"https:\/\/www.palada.net\/index.php\/2018\/10\/25\/news-7444\/"},"modified":"2018-10-25T11:00:21","modified_gmt":"2018-10-25T19:00:21","slug":"news-7444","status":"publish","type":"post","link":"http:\/\/www.palada.net\/index.php\/2018\/10\/25\/news-7444\/","title":{"rendered":"State of the Data Center Market: What to Consider if Choosing the Cloud for Your Business"},"content":{"rendered":"<p><strong>Credit to Author: Frank Nash| Date: Thu, 25 Oct 2018 15:00:00 +0000<\/strong><\/p>\n<p>According to a recent <a href=\"https:\/\/www.srgresearch.com\/articles\/cloud-revenues-continue-grow-50-top-four-providers-tighten-grip-market\" target=\"_blank\" rel=\"noopener\">Synergy research report<\/a>, Microsoft, Google, Alibaba and AWS drive 75% of the revenue in the cloud provider space of the <a href=\"https:\/\/blog.schneider-electric.com\/co-location\/2018\/03\/28\/investment-banker-paints-rosy-picture-of-colocation-market-headed-into-2018\/\" target=\"_blank\" rel=\"noopener\">data center market<\/a>. In the U.S., that leaves enterprises with essentially two choices. Does that mean it\u2019s easier or harder to migrate to the cloud?<\/p>\n<p>Put simply, both. So said panelists David Linthicum, Chief Cloud Strategy Office, Deloitte Consulting and David McCall, VP of Innovation, QTS, during a discussion I led at this year\u2019s <a href=\"https:\/\/www.dcac-live.com\/\" target=\"_blank\" rel=\"noopener\">Data Center Austin Conference (DCAC)<\/a>.<\/p>\n<h2>Assessing Cloud Providers for your IT Applications<\/h2>\n<p>Linthicum and McCall are mixed on their views of simplicity and complexity. McCall believes it\u2019s \u201cexponentially harder for CEOS, CIOs and CTOs to walk through the minefield.\u201d<\/p>\n<p>The question is bigger than which cloud provider to pick, he said. It\u2019s a matter of what companies are specifically looking for: IaaS, PaaS, SaaS, private cloud and so on. Before picking a provider, he said that companies must understand the problem they need to address, their available talent, budget requirements and constraints.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-52312 alignright\" src=\"https:\/\/blog.schneider-electric.com\/wp-content\/uploads\/2018\/10\/998-20368416_GMA-US_1200X1200-300x300.jpg\" alt=\"people gathering around a table at work \" width=\"300\" height=\"300\" srcset=\"https:\/\/blog.schneider-electric.com\/wp-content\/uploads\/2018\/10\/998-20368416_GMA-US_1200X1200-300x300.jpg 300w, https:\/\/blog.schneider-electric.com\/wp-content\/uploads\/2018\/10\/998-20368416_GMA-US_1200X1200-150x150.jpg 150w, https:\/\/blog.schneider-electric.com\/wp-content\/uploads\/2018\/10\/998-20368416_GMA-US_1200X1200-768x768.jpg 768w, https:\/\/blog.schneider-electric.com\/wp-content\/uploads\/2018\/10\/998-20368416_GMA-US_1200X1200-1024x1024.jpg 1024w, https:\/\/blog.schneider-electric.com\/wp-content\/uploads\/2018\/10\/998-20368416_GMA-US_1200X1200-125x125.jpg 125w, https:\/\/blog.schneider-electric.com\/wp-content\/uploads\/2018\/10\/998-20368416_GMA-US_1200X1200.jpg 1200w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/>On the other hand, \u201cWe are in a simpler world,\u201d according to Linthicum. \u201cConsolidation has narrowed down the options, and now we are dealing with the pragmatic application of cloud. That is, the ability to mix existing legacy systems with the public cloud. Enterprises have to look at the practical migration paths.\u201d<\/p>\n<p>His recommended plan starts with understanding workload portfolio in the data center, who owns the data and what the security and governance parameters are.<\/p>\n<p>\u201cTypically, 30 percent of applications are an easy to lift and can be shifted without many changes. Another 30 percent require significant refactoring, and 30 percent can\u2019t be moved. The other 10 percent must be retired and replaced.\u201d<\/p>\n<p>McCall added, \u201cWhen assessing migration, you also have to work through the group\u2019s bias \u2013 of what they imagined they would move. Emotion goes with that process, and it shouldn\u2019t be underestimated.\u201d<\/p>\n<h2>Get Ready to Invest: Why Cloud is Worth the Cost<\/h2>\n<p>In terms of making the right cloud platform selection, McCall advised on matching the provider\u2019s technical expertise, the performance and portfolio options to the business\u2019 application needs. Of course, cost is also a factor.<\/p>\n<p>\u201cRealistically, the cloud costs a half a million dollars per workload and the same per data center,\u201d Linthicum said. \u201cDon\u2019t think the cloud will provide savings enough to pay for the migration. It\u2019s about the agility to expand to the speed of need.\u201d<\/p>\n<p>The speed of business, that is, which he pointed out is changing faster than enterprises can internally. \u201cThat leaves globally 300 companies lagging behind. So, you must go all in to change the business for the better. The cloud\u2019s value is in its ability to drive the business forward.\u201d<\/p>\n<h2>The ROI Reality: Advantages When Assessing the Cloud<\/h2>\n<p>Admittedly, Linthicum said, agility is a hard sell. That\u2019s why he suggests companies derive metrics to understand the cloud\u2019s strategic benefit first. A great deal of upfront work is required to ascertain this understanding.<\/p>\n<p>\u201cIt\u2019s a huge engagement,\u201d he noted. \u201cIt must be defined in terms of market advantages within the context of economics, product roadmaps, and force multipliers. The business case is backed up by a lot of data. If you are looking for OPEX efficiency, that\u2019s not what cloud is about.\u201d<\/p>\n<p>In the data center space, McCall explained it usually makes more sense for businesses to leverage someone else\u2019s infrastructure \u2014 as in <a href=\"https:\/\/www.schneider-electric.com\/en\/work\/solutions\/for-business\/cloud-and-service-providers\/colocation.jsp\" target=\"_blank\" rel=\"noopener\">colocation<\/a> \u2014 rather than build it. He agreed the ROI of cloud savings is in agility.<\/p>\n<p>\u201cTrying to save money versus solve a problem is a dangerous precedent to set. Due diligence up front ensures an understanding of the true value of the cloud.\u201d<\/p>\n<h2>The Forecast is Cloud-y<\/h2>\n<p>Knowing that the speed of business will only accelerate, I wondered what the panelists thought about the future of cloud. Will it take over all applications or remain as part of the hybrid environment?<\/p>\n<p>\u201cThe short answer is no; it won\u2019t take over,\u201d said McCall. \u201cFor one, there\u2019s too much diversity in applications and regulations.\u201d<\/p>\n<p>Linthicum expanded on this. \u201cWe are heading for saturation at about 60 to 70 percent. There\u2019s simply no value proposition for moving some applications to cloud. Colos and MSPs will grow their market share tremendously in the next five years as companies look to get out of the data center \u2018business.\u2019 \u00a0And, let\u2019s just call it computing because the cloud will become an infrastructure we take for granted. The state will be like the non-existent internet technology of 20 years ago. Now, we can\u2019t live without it.\u201d<\/p>\n<h2>Cloud Computing in the Data Center Market \u2013 What Customers Are Saying About its Future<\/h2>\n<p>It\u2019s clear to me the \u201cbig 5\u201d cloud providers have clearly dominated growth through investment. Nevertheless, there\u2019s still a significant number of niche cloud providers who provide more customization through IaaS, PaaS, and private cloud services that can and should be evaluated by prospective customers.<\/p>\n<p>Stay tuned for an upcoming blog by Jason Walker that provides customer perspective on the edge from the panel he hosted at DCAC. In the meantime, check out what our other customers are saying about the <a href=\"https:\/\/www.cloud-colo.schneider-electric.com\/industry-perspectives#megatrends\" target=\"_blank\" rel=\"noopener\">future of cloud computing and the impact of edge.<\/a><\/p>\n<p>The post <a rel=\"nofollow\" href=\"https:\/\/blog.schneider-electric.com\/datacenter\/2018\/10\/25\/state-of-data-center-market-what-to-consider-choosing-cloud-for-your-business\/\">State of the Data Center Market: What to Consider if Choosing the Cloud for Your Business<\/a> appeared first on <a rel=\"nofollow\" href=\"https:\/\/blog.schneider-electric.com\">Schneider Electric Blog<\/a>.<\/p>\n<p><a href=\"https:\/\/blog.schneider-electric.com\/datacenter\/2018\/10\/25\/state-of-data-center-market-what-to-consider-choosing-cloud-for-your-business\/\" target=\"bwo\" >http:\/\/blog.schneider-electric.com\/feed\/<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p><strong>Credit to Author: Frank Nash| Date: Thu, 25 Oct 2018 15:00:00 +0000<\/strong><\/p>\n<p>According to a recent Synergy research report, Microsoft, Google, Alibaba and AWS drive 75% of the revenue in the cloud provider space of the data center market. In the U.S.,&#8230;  <a href=\"https:\/\/blog.schneider-electric.com\/datacenter\/2018\/10\/25\/state-of-data-center-market-what-to-consider-choosing-cloud-for-your-business\/\" title=\"ReadState of the Data Center Market: What to Consider if Choosing the Cloud for Your Business\">Read more &#187;<\/a><\/p>\n<p>The post <a rel=\"nofollow\" href=\"https:\/\/blog.schneider-electric.com\/datacenter\/2018\/10\/25\/state-of-data-center-market-what-to-consider-choosing-cloud-for-your-business\/\">State of the Data Center Market: What to Consider if Choosing the Cloud for Your Business<\/a> appeared first on <a rel=\"nofollow\" href=\"https:\/\/blog.schneider-electric.com\">Schneider Electric Blog<\/a>.<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"colormag_page_container_layout":"default_layout","colormag_page_sidebar_layout":"default_layout","footnotes":""},"categories":[12389,12388],"tags":[12390,12391,19955],"class_list":["post-13677","post","type-post","status-publish","format-standard","hentry","category-scadaics","category-schneider","tag-colocation","tag-data-center","tag-data-center-market"],"_links":{"self":[{"href":"http:\/\/www.palada.net\/index.php\/wp-json\/wp\/v2\/posts\/13677","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.palada.net\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.palada.net\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.palada.net\/index.php\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"http:\/\/www.palada.net\/index.php\/wp-json\/wp\/v2\/comments?post=13677"}],"version-history":[{"count":0,"href":"http:\/\/www.palada.net\/index.php\/wp-json\/wp\/v2\/posts\/13677\/revisions"}],"wp:attachment":[{"href":"http:\/\/www.palada.net\/index.php\/wp-json\/wp\/v2\/media?parent=13677"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.palada.net\/index.php\/wp-json\/wp\/v2\/categories?post=13677"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.palada.net\/index.php\/wp-json\/wp\/v2\/tags?post=13677"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}