Cloud 2014: A Hundred Billion Here, A Hundred Billion There

“A billion here, a billion there, pretty soon, you’re talking real money.”  (Everett Dirksen) However, when it comes to you can add a bunch of zeroes.

While IT spending will grow 5% year over year to $2.1 trillion in 2014, cloud spending, including cloud services and the technology to enable these services, will surge by 25% to over $100B, according to IDC. This will be accompanied by a similar expansion in the variety of workload-specialized cloud infrastructure services, leading to new forms of differentiation among cloud service providers. The research company also predicts a pitched battle between cloud applications and solutions developers, and that by 2017, more than 80% of new cloud apps will be hosted on six PaaS platforms.

Synergy Resource Group LLC reports that other Infrastructure as a Service (IaaS) providers are getting pounded into the ground by . accounted for 35% of the IaaS market, followed by at 7% and everyone else less than 3%.

Regardless of the platform, cloud computing will become the bulk of new IT spend by 2016, according to Gartner. That year will be a defining year for cloud as private cloud begins to give way to hybrid cloud, and nearly half of large enterprises will have hybrid cloud deployments by the end of 2017.

“Overall, there are very real trends toward cloud platforms, and also toward massively scalable processing. Virtualization, service orientation and the Internet have converged to sponsor a phenomenon that enables individuals and businesses to choose how they’ll acquire or deliver IT services, with reduced emphasis on the constraints of traditional software and hardware licensing models,” said Chris Howard, research vice president at Gartner. “Services delivered through the cloud will foster an economy based on delivery and consumption of everything from storage to computation to video to finance deduction management.”

A $100-billion-plus cloud pie is attracting a lot of attention, and all the usual suspects are sharpening their knives. For example, last week Microsoft launched the Cloud OS Network, bringing together 25 top cloud service providers under the same banner to deliver hosted services on , its cloud platform. was also feeling inclusive, extending and/or adding cloud partnerships with Microsoft, Google, Dropbox, CenturyLink, Red Hat and Accenture.

At the same time Microsoft and Dell were beefing up their cloud portfolios, HP was holding its own event in Barcelona where it announced new cloud services and solutions. No stranger to the cloud, IBM’s third quarter earnings report boasted 70% growth in its cloud computing from the previous year, delivering more than $1 billion of cloud revenue in a quarter of which $460 million was delivered as a cloud service.

Networking’s 800-pound gorilla is also expecting big things from the cloud, and yesterday announced a new Cisco Desktop as a Service (DaaS) solution. While was carving up the cloud-based desktop, Oracle was announcing Exalogic Elastic Cloud X4-2, a hardware/software bundle intended to provide extreme performance, reliability and scalability for Oracle, Java and other business applications.

However it’s not just the major vendors bellying up to the cloud buffet. The are thousands – more likely tens of thousands – of others, like content infrastructure software vendor Metalogix, who see big cloud opportunities. The company, which was just got a gold star from Storage Switzerland for its Metalogix Archive Manager Exchange Edition 6.0 and Metalogix Email Migrator 1.0, and announced Email Migrator 2.0, sees huge savings in cloud, versus premises-based .

While sync n’ share, or file share and collaboration services, have often led the way to the cloud and Shadow IT, email, like the PC, isn’t going away any time soon. According to , email content is projected to increase to over 950 million accounts, generating over 119 messages a day next year.

Talking about its recent AWS partnership and the launch of a joint end-to-end email services offering, Matt Brundl-Pandzich, Director, Archiving Business Unit, said the cost savings of going to the cloud are significant. “It can save you a lot of money if you do it right.”

The arguments against on-prem versus cloud email are compelling, said the company. On-prem can include trying to maintain and manage aging systems, updating against viruses and malware attacks, and fending off spammers, which can lead to server crashes, followed by connectivity interruptions that leaves users unable to access email and do their jobs. The Metalogix Total Email Management solution for AWS provides everything an enterprise needs for email archiving, backup, security, migration and continuity for public, private and dedicated public sector clouds.

In addition to cost, there are other benefits, including speed and agility with no vendor lock-in (or when you are left scrambling because of a situation like Nirvanix pulling the plug on its cloud service). “Our solution is basically freedom, an exit strategy for all! We are basically saying it doesn’t matter where you are, we’ll get you out,” said Brundl-Pandzich.

With more than 50,000 terabytes of content, Metalogix has more than 14,000 customers who rely on its products to upgrade, migrate, organize, store, archive and replicate content on Microsoft SharePoint, Exchange and cloud platforms.


Cloud Forecasts From ScienceLogic and

ScienceLogic: Cloud Computing Adoption to Outpace Employee Skillsets

-survey highlights growing discrepancy between cloud computing needs and employee skillsets required for workplace success, job satisfaction;

-50% of organizations will spend more on IT in 2014, investing heavily in public and private cloud-enabling technologies like infrastructure and virtualization;

-half of all respondents participating in cloud initiatives within their organizations need more education on the technology and note their current skillsets do not adequately prepare them to do their jobs well in the coming year.

“Cloud computing is at the top of every CIO’s agenda, but it’s clear that many employees do not feel confident managing the new IT environment,” said Antonio Piraino, CTO, ScienceLogic. “There is hope, however, in automated IT monitoring solutions, which not only help companies do more with less and proactively detect IT issues, but also aid in getting staff up to speed on cloud technologies. As a result, employees are more secure in their jobs, and employers don’t have to worry about losing valuable talent due to a lack of skills.”


Hitachi Data Systems: Private Cloud Puts Everyone At Ease

-private cloud will become a key strategy for companies that want to benefit from reduced costs, security and speed;

-vendors will have to respond with a new kind of agility that is not usually expected from enterprise IT;

-HDS believes that a new private cloud enablement methodology is necessary to build a foundation for service-based delivery; however, at the same time vendors will have to embrace infrastructure agnosticism, openness and innovation.



Author: Steve Wexler

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