This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use of the intended Gartner audience or other authorized recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected, and it may not be further copied, distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates.© 2012 Gartner, Inc. and/or its affiliates. All rights reserved.

The Future of Cloud IaaS

Rakesh L. Kumar

Managing Vice President

1 © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.

Times of Extreme Change

Nexus of ForcesCloud Social Mobile Information

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1. What is bimodal cloud IaaS strategy?

2. What is the future of cloud IaaS?

3. What is the future of my infrastructure?

Key Issues

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1. What is bimodal cloud IaaS strategy?

2. What is the future of cloud IaaS?

3. What is the future of my infrastructure?

Key Issues

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• One size does not fit all

• Two speeds of IT —Two speeds of infrastructure

• The infrastructure of the past shouldn't dictate the infrastructure of the future

Bimodal IT — Not Hybrid Infrastructure

Cloud IaaS will NOT be a commodity

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Mode 1 Traditional Mode 2 Agile

Leadership IT operations/procurement Enterprise architect

Priority Cost reduction Developer productivity

Viewpoint Efficient infrastructure Infrastructure as code

Expectations Low-cost commodity (?) Highly differentiated

Use cases "Lift and shift"; dev./test New apps; digital business

Scale Static or predictable Dynamic; Web-scale

Management ITIL DevOps

Tools Extend existing tools Adopt cloud-native tools

Bimodal Strategy for Cloud IaaS

You cannot add a little agility to Mode 1 to get Mode 2!

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Mode 1 Traditional Mode 2 Agile

Leadership IT operations/sourcing Enterprise architect

Priority Cost; comfort and familiarity Features

Procurement Formal RFP and selection Ad hoc, then formalized

Budget Central IT Business

Bimodal Sourcing for Cloud IaaS

Mode 1 Mode 2

Stuck in the middle

"Fit for no one"

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Bridge Back From the Island of the Future

Impact on Mode 1

High

LowBimodal Maturity

High

Island

Extend

New Core

Replace-ment

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1. Fast provisioning! = Agility. You can't sprinkle on agility any more than you can add quality.

2. It's not just about infrastructure. Think about the entire application stack.

3. It's not just about the operational benefits. Improve the application life cycle.

4. The infrastructure isn't the hard part. Transforming the organization — That's hard.

Guidelines for Success

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1. What is bimodal cloud IaaS strategy?

2. What is the future of cloud IaaS?

3. What is the future of my infrastructure?

Key Issues

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Cloud IaaS Is Not a Commodity

Compute Storage Network

Management

Solutions Differentiated solutions

Integrated management

Flexible low-cost resources

IaaS naturally pushes up-market to PaaS

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IaaS and PaaS: Control vs. Manageability

SP SP SP SP

Yours YoursAutomation

AssistedSP

Data Center

Virtual Machine

IaaS IaaS+ IaaS++

Yours1-Click

Install

Automation

AssistedSPMiddleware

PaaS

More Control Easier Management

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IaaS Absorbs PaaS Framework Functions

PaaS Converged IaaS + PaaS

ContainersContainers as a service, running

inside VMs

Application runtimesPortable container environments

(Docker)

Request routerContainer-aware load balancing as

a service

Service broker Credentials as a service

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Brutal Competitive Dynamics

The Winners: Hyperscale Megavendors

May 2014 May 2015

From: "Magic Quadrant for Cloud Infrastructure as a Service," 28 May 2014 (G00261698)

From: "Magic Quadrant for Cloud Infrastructure as a Service, Worldwide," 18 May 2015 (G00265139)

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The Advantages of Scale

Greater efficiency of infrastructure operations.

Better leverage ofsoftware development.

Greater breadth and depth ofecosystem.

Software is a scale game. No scale = Forced into niche.

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• Market share concentrated with Top 2 to 4 providers

• Highly differentiated offerings

• Large number of niche providers

• Niche providers may be more commodity (geographic focus)

• Businesses will use multiple providers

• Businesses will choose 1 or 2 strategic providers

• Most applications will be deployed to a single provider

• Provider for each app chosen by use case

Customers Will Pick Strategic Winners

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1. What is bimodal cloud IaaS strategy?

2. What is the future of cloud IaaS?

3. What is the future of my infrastructure?

Key Issues

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The Hybrid Data Center

PrimaryDC

DR Site

Hosted Site

SaaS

DRaaS

Public Cloud

Social Platforms

PaaS Provider

Branch Office

Second DC

BranchMicroDC

SaaS

It's not about "my data center" — it's about delivering compute resources to the business in the best way possible.

Colocation

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Principles to Keep in Mind

Not everything can or should be cloud

Some workloads must remain on-premise due to regulatory compliance or tie to physical location

Private cloud-building technology will not deliver breadth, depth, innovation of service providers

IT orgs. likely can't update, innovate, reduce costs of internal clouds as quickly as providers

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No One Tool to Rule Them All

Bimodal, hybrid IT portfolio

Not hybrid infrastructure management

Best-of-breed native-oriented tools

Not commoditized resource management

Unified tooling only where it makes sense

Financial management, compliance, etc.

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Build It Yourself? Make It Competitive!

Has the necessary features — Not just for IT ops. but devs./engineers/scientists

Cost-competitive — Now and in 3 years

Serves a distinctive use case

Consider PaaS instead of IaaS

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Establish a Cloud Center of Excellence

Provide cross-functional leadership

Enterprise architect as leaders

Establish policies

Governance, security, use cases

Serve as a broker

Guide to best practice, manage vendors

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Plan a bimodal IT strategy, rather than adopting a one-size-fits-all approach to infrastructure.

Choose cloud IaaS providers strategically.

Take advantage of cloud-native capabilities.

Transform the organization, process, and tools.

Recommendations

This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use of the intended Gartner audience or other authorized recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected, and it may not be further copied, distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates.© 2012 Gartner, Inc. and/or its affiliates. All rights reserved.

The Future of Cloud IaaS

Rakesh L. Kumar

Managing Vice President