{"id":4070,"date":"2018-11-13T18:38:12","date_gmt":"2018-11-13T11:38:12","guid":{"rendered":"https:\/\/news.adeptasiaconsulting.com\/?p=4070"},"modified":"2018-11-10T15:29:32","modified_gmt":"2018-11-10T08:29:32","slug":"the-hybrid-cloud-market-just-got-a-heck-of-a-lot-more-compelling","status":"publish","type":"post","link":"https:\/\/news.adeptasiaconsulting.com\/the-hybrid-cloud-market-just-got-a-heck-of-a-lot-more-compelling\/","title":{"rendered":"The hybrid cloud market just got a heck of a lot more compelling"},"content":{"rendered":"
\n

Let\u2019s start with a basic premise that the vast majority of the world\u2019s workloads remain in private data centers. Cloud infrastructure vendors are working hard to shift those workloads, but technology always moves a lot slower than we think. That is the lens through which many cloud companies operate.<\/p>\n

The idea that you operate both on prem and in the cloud with multiple vendors is the whole idea behind the notion of the hybrid cloud. It\u2019s where companies like Microsoft, <\/a> IBM, <\/a> Dell and Oracle are placing their bets. These died-in-the-wool enterprise companies see their large customers making a slower slog to the cloud than you would imagine, and they want to provide them with the tools and technologies to manage across both worlds, while helping them shift when they are ready.<\/p>\n

Cloud-native computing developed in part to provide a single management fabric across on prem and cloud, freeing IT from having two sets of tools and trying somehow to bridge the gap between the two worlds.<\/p>\n

What every cloud vendor wants<\/h2>\n

Red Hat <\/a> \u2014 you know, that company\u00a0that was sold to IBM<\/a> for $34 billion this week \u2014 has operated in this world. While most people think of the company as the one responsible for bringing Linux to the enterprise, over the last several years, it has been helping customers manage this transition and build applications that could live partly on prem and partly in the cloud.<\/p>\n

As an example, it has built OpenShift, its version of Kubernetes. As CEO Jim Whitehurst told me last year, \u201cOur hottest product is OpenShift. People talk about containers and they forget it\u2019s a feature of Linux,\u201d he said. That is an operating system that Red Hat knows a thing or two about.<\/p>\n

With Red Hat in the fold<\/a>, IBM can contend that being open source; they can build modern applications on top of open source tools and run them on IBM\u2019s cloud or any of their competitors, a real hybrid approach.<\/p>\n

Microsoft has a huge advantage here, of course, because it has a massive presence in the enterprise already. Many companies out there could be described as Microsoft shops, and for those companies moving from on prem Microsoft to cloud Microsoft represents a less daunting challenge than starting from scratch.<\/p>\n

Oracle <\/a> brings similar value with its core database products. Companies using Oracle databases \u2014 just about everyone \u2014 might find it easier to move that valuable data to Oracle\u2019s cloud, although\u00a0the numbers don\u2019t suggest<\/a> that\u2019s necessarily happening (and Oracle has stopped breaking out<\/a> its cloud revenue).<\/p>\n

Dell, <\/a> which spent $67 billion for EMC<\/a>, making the Red Hat purchase pale by comparison, has been trying to pull together a hybrid solution by combining VMware, Pivotal and Dell\/EMC hardware.<\/p>\n

Cloud vendors reporting<\/h2>\n

You could argue that hybrid is a temporary state, that at some point, the vast majority of workloads will eventually be running in the cloud and the hybrid business as we know it today will continually shrink over time. We are certainly seeing cloud infrastructure revenue skyrocketing with no signs of slowing down as more workloads move to the cloud.<\/p>\n

In their latest earnings reports, those who break out such things, the successful ones, reported growth in their cloud business. It\u2019s important to note that these companies define cloud revenue in different ways, but you can see the trend is definitely up:<\/p>\n

    \n
  • AWS reported revenue of $6.7 billion in revenue for the quarter, up from $4.58 billion the previous year.<\/li>\n
  • Microsoft Intelligent Cloud, which incorporates things like Azure and server products and enterprise services, was at $8.6 billion, up from $6.9 billion.<\/li>\n
  • IBM Technology Services and Cloud Platforms, which includes infrastructure services, technical support services and integration software reported revenue of $8.6 billion, up from $8.5 billion the previous year.<\/li>\n
  • Others like Oracle and Google didn\u2019t break out their cloud revenue.<\/li>\n<\/ul>\n

    Show me the money<\/h2>\n

    All of this is to say, there is a lot of money on the table here and companies are moving more workloads at an increasingly rapid pace.\u00a0 You might also have noticed that IBM\u2019s growth is flat compared to the others. Yesterday in a call with analysts and press, IBM CEO Ginni Rometty projected that revenue for the hybrid cloud (however you define that) could reach $1 trillion by 2020. Whether that number is exaggerated or not, there is clearly a significant amount of business here, and IBM might see it as a way out of its revenue problems, especially if they can leverage consulting\/services along with it.<\/p>\n

    There is probably so much business that there is room for more than one winner, but if you asked before Sunday if IBM had a shot in this mix against its formidable competitors, especially those born in the cloud like AWS and Google, most probably wouldn\u2019t have given them much chance.<\/p>\n

    When Red Hat eventually joins forces with IBM, it at least gives their sales teams a compelling argument, one that could get them into the conversation \u2014 and that is probably why they were willing to spend so much money to get it. It puts them back in the game, and after years of struggling, that is something. And in the process, it has stirred up the hybrid cloud market in a way we didn\u2019t see coming last week before this deal.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

    Let\u2019s start with a basic premise that the vast majority of the world\u2019s workloads remain in private data centers. Cloud infrastructure vendors are working hard to shift those workloads, but technology always moves a lot slower than we think. That is the lens through which many cloud companies operate. The idea that you operate both […]<\/p>\n","protected":false},"author":4,"featured_media":4069,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false},"categories":[6],"tags":[643,2136,3054,1403,407,443,794,3056],"acf":[],"yoast_head":"\nThe hybrid cloud market just got a heck of a lot more compelling - Adept Asia Consulting<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/news.adeptasiaconsulting.com\/the-hybrid-cloud-market-just-got-a-heck-of-a-lot-more-compelling\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The hybrid cloud market just got a heck of a lot more compelling - Adept Asia Consulting\" \/>\n<meta property=\"og:description\" content=\"Let\u2019s start with a basic premise that the vast majority of the world\u2019s workloads remain in private data centers. Cloud infrastructure vendors are working hard to shift those workloads, but technology always moves a lot slower than we think. That is the lens through which many cloud companies operate. 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