TechCrunch whiffs out the possibility that private cloud is a thing

“We’re seeing a big trend among customers to move cloud stacks inside customer’s data center for security, performance and governance,” Wang told TechCrunch.

There’s not really any qualitative (market share, penetration, or surveys – all pretty easy to lmgtfy) bits here, but I’d take it more as a slightly eyebrow raising thing along the lines of “if even TechCrunch wiffs out private cloud, maybe there’s some fire there.”

Plus, analyst quotes.

Link

What’s in Microsoft Azure Stack

Some BOM’ing of Azure Stack:

Azure Stack is made of two basic components, the underlying infrastructure that customers purchase from one of Microsoft’s certified partners (initially Dell EMC, HPE and Lenovo) and software that is licensed from Microsoft.The software includes basic IaaS functions that make up a cloud, such as virtual machines, storage and virtual networking. Azure Stack includes some platform-as-a-service (PaaS) application-development features including the Azure Container Service and Microsoft’s Azure Functions serverless computing software, plus MySQL and SQL Server support. It comes with Azure Active Directory for user authentication.Customers also have access to a wide range of third-party apps from the Azure Marketplace, including OS images from companies like Red Hat and SuSE, and templates that can be installed to run programs like Cloud Foundry, Kubernetes and Mesosphere.On the hardware side, Azure Stack runs on a hyperconverged infrastructure stack that Microsoft and its hardware vendors have certified. The smallest production-level Azure Stack deployment is a four-server rack with three physical switches and a lifecycle management server host. Individual racks can scale up to 12 servers, and eventually, multiple racks can be scaled together. Dell EMC, HPE and Lenovo are initial launch partners. Cisco plans to offer a certified Azure Stack platform based on its UCS hardware line by the end of 2017 and Huawei will roll out Azure Stack support by the end of 2018.IDC Data Center Networking Research Analyst Brad Casemore says he believes customers will need to run at least a 10 Gigabit Ethernet cabling with dual-port mixing. Converged network interface cards, support for BGP and data center bridging are important too. Microsoft estimates that a full-sized, 12-rack server unit of Azure Stack can supply about 400 virtual machines with 2 CPUs and 7 GB of RAM, with resiliency.

And Lydia explains the “people want private cloud ¯_(ツ)_/¯” angle:

“This is definitely a plus in the Microsoft portfolio,” says Gartner VP and Distinguished Analyst Lydia Leong, but she says it’s not right for every customer. “I don’t think this is a fundamental game-changer in the dynamics of the IaaS market,” she notes, but “this is going to be another thing to compel Microsoft-centric organizations to use Azure.”

Leong expects this could be beneficial for customers who want to use Azure but some reason such as regulations, data sensitivity, or location of data prevents them from using the public cloud. If a customer has sensitive data they’re not willing to put in the public cloud, they could deploy Azure Stack behind their firewall to process data, then relatively easily interact with applications and data in the public cloud.

Source: “Azure Stack: Microsoft’s private-cloud platform and what IT pros need to know about it,” Brandon Butler

AWS’s private cloud stuff to day, plus VMware

Good round-up of AWS’s private cloud stuff:

  • AWS added on-premises support to its CodeDeploy continuous-delivery service in 2015.
  • AWS introduced the Snowball storage server companies could use to copy data and then ship it to the cloud in 2015.
  • AWS added on-premises support to its EC2 Run Command tool for running shell scripts on many machines at once in 2016.
  • AWS unveiled the Snowmobile truck for copying even larger supplies of data and then hauling it off to Amazon in 2016.
  • This past November AWS released a container image of its Amazon Linux server operating system for use on corporate servers.

Source: AWS talking with VMware about building on-premises software: report

Rackspace partners with Pivotal to launch managed services for Cloud Foundry

“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.”

Source: Rackspace partners with Pivotal to launch managed services for Cloud Foundry, Frederic Lardinois, TechCrunch

American Airlines is a good profile of enterprise cloud buyer’s needs, hopes & dreams – Notebook

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.”

Source: American Airlines Heads for a New Cloud with IBM

Avoiding your rival’s cloud with multi-cloud capabilities

[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.

Source: Partners Grapple With Conflicts Between Retail Customers And Amazon – Page: 3 | CRN

Shifting IT spending drives sales-force changes – Notebook

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.

See also coverage from CNBC, and The Register’s coverage, e.g.:

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.

Shifting spending

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.

Link

451’s container orchestration usage survey – Notebook


As part of CoreOS’s conference this week, 451 put out a sponsored study on container orchestration. It’s been much cited and is free, so it’s worth taking a look. Here’s my highlights and notes:

  • Leadgen yourself to CoreOS get a copy of the report.
  • This report is really more of a “container orchestration usage” report than much about “hybrid cloud.”
  • Demographics:
    • “We surveyed 201 enterprise IT decision-makers in April and May 2017. This was not a survey of developers; rather, we received responses from those in C-level and director-level positions, including CISO, CTO, CIO, director of IT, IT Ops and DevOps, and VPs and managers of IT.”
    • All from the US
    • “All of our survey respondents came from organizations using application containers, and all were familiar with their organization’s use of containers.” – This survey, then, tells you what people who’re already using containers are doing, not what the entire market is thinking and planning on.
    • “A significant slice of the survey respondents represented large enterprises.”
  • Organizations are hoping to use containers for “[a] ‘leapfrog’ effect, whereby containers are viewed as a way to skip adoption of other technologies, was tested, and a majority of respondents think Kubernetes and other container management and orchestration software is sufficient to replace both private clouds and PaaS.”
  • Obviously I’m biased, being at Pivotal, but the question here is “to do what?” As we like to say around here, you’re going to end-up with a platform. People need a “platform” on-top of that raw IaaS, and as things like Icito show (not to mention Pivotal’s ongoing momentum), the lower levels aren’t cutting the mustard.
  • There’s an ongoing semantic argument about what “PaaS” means to be mindful of, as well: in contexts like these, the term is often taken to mean “that old stuff, before, like 2009.” At the very least, as with Gartner’s PaaS Magic Quadrant, the phrase often means means “only in the public cloud.” Again, the point is: if you’re developing and running software you need an application development, middleware, and services platform. Call it whatever you like, but make sure you have it. It’s highly likely that these “whatever you want to call ‘PaaS’ PaaSes” will run on-top of and with container orchestration layers, for example, as Cloud Foundry does and is doing.
  • That said, it’s not uncommon for me to encounter people in organizations who really do have a “just the containers, and maybe some kubernates” mind-set in the planning phase of their cloud-native stuff. Of course, they frequently end-up needing more.
  • Back to the survey: keeping in mind that all respondents were already using containers (or at least committed to doing so, I think), ~27% had “initial” production container use, ~25% of respondents had “broad” containers in production. So, if you were being happy-path, you’d say “over half of respondents have containers in production.”
  • In a broader survey (where, presumably, not every enterprise was already using containers), of 300+ enterprises, production container use was: 19% in initial production, 8% were in broad production implementation.
  • Nonetheless, 451 has been tracking steady, high growth in container usage for the past few years, putting the container market at $2.7B by 2020 and $1.1bn in 2017.
  • As the report says, it’s more interesting to see what benefits users actually find once they’re using the technology. Their original desires are often just puppy-love notions after actual usage:

  • Interesting note on lock-in: “Given that avoiding vendor lock-in is generally a priority for organizations, it might seem surprising that it was not ranked higher as an advantage since much of the container software used today is open source… However, our respondents for this study were users of containers, and may have assumed that the technology would be open source and, thus, lock-in less of a concern.” (There’s a whole separate report from Gartner on lock-in that I’ll take a look at, and, of course, some 140 character level analysis.)
  • On marketshare, rated by usage, not revenue:

  • On that note, it’s easy to misread the widely quoted finding of “[n]early three-quarters (71 percent) of respondents indicated they are using Kubernetes” as meaning only Kubernetes. Actually, people are using many of them at once. The report clarifies this: “The fact that almost 75% of organizations reported using Kubernetes while the same group also reported significant use of other container management and orchestration software is evidence of a mixed market.”

As one last piece of context, one of the more recent Gartner surveys for container usage puts usage at around 18%, with 4% of that being “significant production use”:


Of course, looks at more specialized slices of the market find higher usage.

This early in the container market, it’s good to pay close attention to surveys because the sample size will be small, selective, and most people will only have used containers for a short while. But, there’s good stuff in this survey, it’s definitely worth looking at and using.