“Managed Pivotal Cloud Foundry is Rackspace’s first step into the managed platform space, as we move up the stack to solutions that customers want our help with,” wrote Brannon Lacey, vice president of applications and platforms at Rackspace, in today’s announcement. “It is a solution that helps customers get up and running on Pivotal Cloud Foundry quickly and stay up and running, with operational support and proactive monitoring. This way, in-house teams can focus on innovation and getting out to market quickly while Rackspace handles the backend.”
Despite the forward momentum, a new study conducted by Cisco shows that 60 percent of IoT initiatives stall at the Proof of Concept (PoC) stage and only 26 percent of companies have had an IoT initiative that they considered a complete success. Even worse: a third of all completed projects were not considered a success.
While 26% may, at first, seem bad, if you baseline it against the Standish Chaos reports, it looks pretty normal for an IT project:
In 2015, Standish’s study said about 29% of projects were considered a success. There’s a 2016 report out too, but it’s hard to find anything more than an outline of it. I’ve never figured out how legit the CHAOS report is, but it seems a-OK.
Point being: innovating in software, let alone the business around that software, is all about failure. ~25% success rate is pretty good.
Pivotal is at the epicenter of how enormous companies rediscover the art of software development.
Turns out of course it’s not just Developer Time To Suck that is shrinking. Operations is heading the same way. Folks at Pivotal are saying that operating systems don’t matter, as we’ve moved further up the stack. Cloud Native is a proxy for saying much the same thing. But then, something is being written right now that will supplant Kubernetes. If we’re not running our own environments in house, operations disposability become increasingly realistic. Cattle not pets, for everything.
A recent rendition of one of my standard talks at the Austin DevOps Meetup. See the slides as well.
Microsoft will ship it’s private cloud stack, Azure Stack, in September. Will this work? Will people buy it? What could you even put in that cloud? You can feel that pull people have towards private cloud, so we’re looking forward to what happens. On a related topic, by our reckoning, kubernetes to small to have already fallen. Also: the elusive Baltimore accent, Oracle and containers, and recommendations.
With no guest, this week Richard and I cover all sorts of things:
There’s some exciting private cloud news on the horizon with Microsoft’s Azure Stack coming out in September. We discuss the brief history of private cloud and several models people have tried, along with some other news from the infrastructure software world. With no guest, Richard and I discuss some projects we’re working from cloud-native .Net, enterprise integration, and enterprise architecture.
Check out the episode!
While this is sort of a bummer story for Pivotal (we’d like to have this account), it has a good profile of American and their needs in it. All of which are representative of other large organizations, e.g.:
- Application types: “The first result is that the airline will migrate to the IBM Cloud some of its critical applications, including the main website, its customer-facing mobile app and its global network of check-in kiosks. Other workloads and tools, such as the company’s Cargo customer website, also will be moved to the IBM Cloud.”
- Managed data-centers/cloud: “The airline will be able to utilize the global footprint of IBM Cloud, which consists of more than 50 data centers in 17 countries, in addition to a wide range of application development capabilities.”
- Long-term planning: “We wanted to make sure that the cloud provider would be using Cloud Foundry and open-source technologies so we don’t get locked in by proprietary solutions,” Grubbs said. “We also wanted a partner that would offer us the agility to innovate at the organizational and process levels and have deep industry expertise with security at the core.”
- We want to do all the new meat-ware: “As part of this process, American will work with IBM Global Services to use IBM’s Garage Methodology of creating applications through a micro-services architecture, design thinking, agile methodology, DevOps and lean development, the company said.”
- Legacy, it’s how you got here: “IBM Cloud will help enable developers to build and change application functionalities for the airline’s customers. These customer-facing systems will be on the IBM Public Cloud, while American will maintain backend connectivity to other on-premise legacy and third-party systems, for true Hybrid Cloud functionality.”
- There’s a lot going on: “American Airlines and its subsidiary, American Eagle, offer an average of 6,700 flights per day to about 350 destinations in more than 50 countries. American has hubs in Charlotte, Chicago, Dallas/Fort Worth, Los Angeles, Miami, New York, Philadelphia, Phoenix and Washington, D.C.”
[O]ne well-publicized case in that vein, they said, was Home Depot directly working with Pivotal Software to introduce Pivotal Cloud Foundry to Google Cloud Platform. The home improvement retailer wanted to continue to use the popular development environment in the public cloud, but avoid giving business to Amazon’s largest profit-generating division.
A Pivotal spokesperson told CRN that Home Depot, like other Fortune 500 retail customers using Pivotal Cloud Foundry for app development, prefer Google Cloud Platform or Microsoft Azure above AWS. Pivotal and Google “rapidly accelerated joint R&D efforts to add new capabilities,” he said, “encouraged” by those retail giants.
At the same time, Pivotal and Microsoft have also stepped up efforts to integrate capabilities on Azure, “primarily driven by automakers,” he said.
Looking at how company’s arrange their sales (and marketing) organizations is an interesting view into the effect of “cloud” on how IT is used and consumed. This week Microsoft is re-arranging it’s sales force to make it more cloud-friendly, people say.
From what I can tell with my dilettante analyst, Microsoft’s theory appears to be that:
- sales people need to be more technically savvy on cloud,
- have more vertical knowledge (how does cloud apply to my industry?), and,
- target larger accounts (where the top and bottom line revenue is worth having a big sales venture, and to bring in volume and cash to public cloud).
Also, with 75% being outside of the US, it’s a dramatic change internationally.
Here’s some excerpts from coverage:
Summarized by Nicole Henderson:
The company said it is implementing the changes not to cut costs, but to improve how it handles sales; specifically, it said it will use employees who are more knowledgeable about specific verticals so they can sell bigger packages, CNBC reports.
As Microsoft vies for more enterprise cloud clients, having better trained salespeople, who are knowledgeable about a specific vertical, will mean they are better equipped to meet client needs. To that end, Microsoft said in an internal memo that it would split commercial sales into two segments – one targeting the biggest customers and one on small and medium clients. In addition, Microsoft employees will be aligned around six industry verticals – manufacturing, financial services, retail, health, education and government.
With recent changes to its enterprise agreement to exclude smaller companies, Microsoft is focusing on bigger deals that require fewer staff, while everyone else gets shifted onto a per-person consumption payment model for Microsoft’s cloudy services.
We also discussed this briefly in this week’s Pivotal Conversations.
Meanwhile, while this doesn’t capture all of the market-shift (you’d also want to see the shift from COTS to SaaS, infrastructure software, and then *aaS spend), some recent charting from IDC shows one of the motivations for changing up your sales approach, i.e., IT infrastructure (hardware) money is shifting around to public and private cloud stacks:
In the above, you see the blue bar slowly decreasing in the out-years meaning less “traditional” spend and more “cloud” spend. The pricing dynamics and units shipping in public cloud are all whack compared to private cloud (Google, Amazon, and Azure’s hardware needs are much different than private cloud needs), but looking at the red bar gives you an interesting perspective on new build out at enterprises. And, thus, you can get a sense for shifting buyer behaviors in IT…and why you’d want to re-arrange how you sell to them. See more recent details from IDC.