60% of enterprises using or planning to use public IaaS by the end of 2016, IDC

IDC’s IaaS forecast is out, tragically, I don’t have access to it. However, here’s some highlights from the press release:

  • Public IaaS is in wide use “A recent survey of over 6,000 IT organizations found that nearly two thirds of the respondents are either already using or planning to use public cloud IaaS by the end of 2016.”
  • Public IaaS is a large, fast growing market – the overall IaaS market is forecast to grow from $12.6bn in 2015 to $43.6bn in 2020, a CAGR of 28.2%.
  • Yup, fast growing – growth from 2014 to 2015 was 51%
  • People use more than one IaaS, and probably “cloud” – “[H]ybrid cloud infrastructure is already a common pattern at several large enterprises and IDC predicts that 80% of IT organizations will be committed to hybrid architectures by 2018″ – notice they say “large enterprises,” which suggests a cut of the data by company size: last I recall, IDC defined “large enterprise” as 2,500+ people, which may or may not be the case here.
  • A few cloud providers dominate – Amazon is still king, and there’s an fat-head of marketshare: “In 2015, 56% of the revenue and 59% of the absolute growth went to the top 10 IaaS vendors.”

Contrast that 60% IaaS usage with the 45% use in a recent Morgan Stanley CIO survey. I don’t think that’s a huge difference, but it does show the fiddliness of these kinds of surveys. To be fair, the Morgan Stanley survey has public IaaS usage at ~90% by 2019. I’d trust IDC a lot more, esp. with 6,000 surveyed vs. 100.

Also, while I can’t verify this: I’d assume this public IaaS is not to the exclusion of private cloud/on-premises. To be sure, some, or even much, of it must be public cloud gobbling up on-premises usage and revenue. However, I wouldn’t take it as a zero-sum game between the two.

Source: Enterprise Adoption Driving Strong Growth of Public Cloud Infrastructure as a Service, According to IDC – prUS41599716

Amazon Prime Day is biggest day for online retailer ever

The online retailer said worldwide orders rose more than 60 percent compared with the previous Prime Day.

Looks like things worked out well.

Some of the more popular “deals”

Source: Amazon Prime Day is biggest day for online retailer ever, sourced from my wife!

Chef Automate: the big stack o’ stuff from Chef

Chef stack diagram

The idea behind this consolidation is to give organizations system-wide insight across all their applications and their supporting environments, be they in the cloud or within private data centers.

Also, some momentum updates:

More than 80 percent of Chef’s revenue now comes from enterprise deployments, consisting of more than 900 commercial customers.

See also Tim Anderson’s coverage at The Register.

Source: Chef Rolls all of its IT Management Ingredients into One Package, Chef Automate

CPI case study: IBM and SoftLayer would be greater together

Data from 451 Research’s Cloud Price Index suggests that IBM is missing a trick. By going all-in and baking SoftLayer with Bluemix, IBM would gain a leading position in the market in terms of completeness of services and global availability, as well as finally delivering a single user experience.

Owen over at 451 suggests that IBM hasn’t yet merged SoftLayer into Bluemix totally, missing out on a high ranking in cloud providers (by functionality, geographic availability, etc.). Also: “The company claims $10.2bn in cloud revenue, a growth rate of 46% Y/Y, and 20,000 new users per week.”

Source: CPI case study: IBM and SoftLayer would be greater together

CloudBees launches certification and new private SaaS offering backed by Jenkins 2.0

2014, when the company pivoted away from its public PaaS offering to focus on Jenkins. That seems to have been the right move – headcount has grown from 60 to 164 since then, and revenue increased 150% year over year in 2015.

There’s pricing in there too and some notes on enterprise customers if you have 451 access.

Source: CloudBees launches certification and new private SaaS offering backed by Jenkins 2.0

Link: Don’t make the mistake of thinking the CIO is irrelevant – TechRepublic

“The world isn’t about to end, however. Yes, Forrester reveals in its “Understanding Shifting Technology Acquisition Patterns” research note that lines of business are taking on a greater role in technology purchasing, removing IT from the purchasing process in 6.3% of new technology purchases in 2013, rising to 7.2% in 2015, while IT-only purchases will fall from 23.7% (2013) to 21.6% (2015).”

From 2014.

Source: Don’t make the mistake of thinking the CIO is irrelevant – TechRepublic

Link: Gartner: Cloud Email Adoption Still in Early Stages

“The cloud email market is still in the early stages of adoption, Gartner said, with 13 percent of identified publicly listed companies globally using one of the two main cloud email vendors, Microsoft Office 365 or Google Apps for Work, respectively. With the majority of companies opting for smaller vendors, the cloud email opportunity is still ripe for channel partners… According to Gartner, 8.5 percent of public companies in its sample of nearly 40,000 public companies globally use Microsoft’s Office 365 service, while 4.7 percent use Google Apps for Work.”

Seems pretty crazy, but I’m sure there’s sunk costs, security and data handling issues, and, well, sometimes it probably is cheaper.

Source: Gartner: Cloud Email Adoption Still in Early Stages

Link: Wanted: 1,400 sales jockeys to flog Oracle Cloud

Ramping up cloud: “Oracle talks a great cloud game – it says it has in the last six months added nearly 1,500 new software as a service (SaaS) customers and more than 2,100 platform as a service (PaaS) customers.”

Source: Wanted: 1,400 sales jockeys to flog Oracle Cloud

Link: Internet of Things Spending Forecast to Reach Nearly $1.3 Trillion in 2019 Led by Widespread Initiatives

“According to a new IDC Spending Guide, worldwide spending on the Internet of Things (IoT) will grow at a 17.0% compound annual growth rate (CAGR) from $698.6 billion in 2015 to nearly $1.3 trillion in 2019.”

I think IoT is becoming mor like IoEverything.

Source: Internet of Things Spending Forecast to Reach Nearly $1.3 Trillion in 2019 Led by Widespread Initiatives

Link: Apple Watch by the (estimated) numbers, and 11 claimed myths about the wearable

Round up of marketshare and commentary on the Apple Watch from Horace’s Apple Watch conference. 80% of wearable market, they say.

Source: Apple Watch by the (estimated) numbers, and 11 claimed myths about the wearable

The many meanings of “cloud broker”

From coverage of a keynote at Gartner DC:

That new role has less to do with managing disparate bits of infrastructure and more to do with selecting the best infrastructure strategy to provide a specific service. The toolbox they can select from includes on-premise or colocation data centers and cloud – private, public, or hybrid, on-prem or outsourced.

For as long as cloud has been around, the idea of a “cloud broker” has existed. For awhile, it meant software (or an “as a Service”) acting as a marketplace, like an App Store, that people would select IT services from.

It also can mean a market where you are continually buying the cheapest price, sort of arbitraging between the ever lowering costs of public clouds, some how magically loving workloads cheaply and quickly enough between these clouds to save money and time. You’ll hear people say “bursting” a lot here.

Of late I’ve noticed a more normal definition: the act of the IT department serving as a curator, service provider, and accountant for cloud services from vendors. I mean, that’s a large part of what IT has done all along, so it makes sense.

“The role of IT is shifting to become an intermediary between the customer and the data center and the service provider,” Bittman, a Gartner VP and distinguished analyst, said. “The service provider might be you, but it might be Google, or it might be Salesforce. It comes down to delegating responsibility.”

Today, digital business capabilities drive 18 percent of enterprise revenue, Raymond Paquet, a managing VP at Gartner, said. The analysts expect that portion to grow to 25 percent in two years and more than double by 2020, reaching 41 percent.

This last bit is what feels like s more dramatic change: IT being called on to help run the business, not just keep the lights on.

Link: Usage of Apple Watch by British Airways Passengers

“Apple watches now account for more than five per cent of app usage, giving customers access to real-time flight status, gate information, a countdown to the departure time and the weather at their destination.”

Source: Usage of Apple Watch by British Airways Passengers

Link: Tech companies that are likely to acquire startups in 2016

“The roughly 60 or so publicly traded software companies hold more than $380B in cash and short term investments on their balance sheets. Though Microsoft, Google, Cisco and Oracle possess 75% of that cash, 14 other companies have cash reserves of greater than $500M.”

Source: Tech companies that are likely to acquire startups in 2016

Link: Gartner Survey Reveals Western European Employees View IT as a Technical Resource, Not a Digital Advisor

While employees are feeling more and more computer literate, they’re valuing the IT department less. Once again, IT has to reestablish itself as a source of innovation instead of cost-cutting, light-bulb illuminators. “Keep moving and get out of the way,” and all that.

n=” online survey gathered data from 1,000 employees in Western Europe from organizations with more than 100 employee.”

Source: Gartner Survey Reveals Western European Employees View IT as a Technical Resource, Not a Digital Advisor

Pivotal Cloud Foundry 1.6, getting beyond the blinking cursor into the application layer

There’s a new release of Pivotal Cloud Foundry out this week. We’ve been seeing great pick-up from customers, and the nature of conversations I’ve been seeing while visiting them has been changing from operations, IaaS-driven topics to discussions about improving application development and delivery. This release also reflects that shift “up the stack.” Here’s my brief take on how things are going for Pivotal Cloud Foundry.

The most typical path to using Pivotal Cloud Foundry

First, this is how I see most customers arriving at Pivotal Cloud Foundry:

Who does Pivotal see as their toughest competition? According to Watters, that distinction belongs to AWS. Cloud customers often believe that AWS itself is enough. [James] Watters says that there wouldn’t even be the concept of cloud-native apps without Amazon, but “people need more than just Amazon to be successful.” Watters believes that some of Pivotal’s best customers are those who first tried to creates platforms themselves, but then asked “what’s the right thing to do for my organization?”

The rest of the piece is a good, brief overview of the new feature in Pivotal Cloud Foundry 1.6.

What I see in this release is a movement “up the stack” to address application architecture and development concerns. You can see this in the incorporation of Spring Cloud (which supports, among many other things, a microservices approach), support for .Net (almost every large organization wants and needs this for the way they develop applications), and the numerous integrations with ALM tools (like Cloudbees, GitLabs, etc.).

For many years – and still! – the focus of “cloud” has been on the infrastructure layer: setting up the “operating system” for the cloud, your big datacenter, and everything that results in that magical blinking cursor:

I think of this as the “blinking cursor” problem. You know that softly pulsing cursor: it’s the result of millions ­—if not billions! — of dollars spent on cloud projects. These “private cloud” projects see companies redoing how their IT department provides infrastructure. They move from physical to virtual management; move from manual ticket processing to self­-service, automated provisioning; and after efforts that must have seemed like building all of the furniture for a new IKEA store with just a pocket knife, they might end up with their own cloud. And then, after all of this, they’ve gotten the blinking cursor up! The servers are ready to use! Now the hard work of designing, developing, deploying, and managing the applications that run the business starts. There is little wonder that 95% of folks in [a poll asking “what went wrong with your private cloud project?”] were not completely satisfied with their private cloud projects.

I still see much of the conversation centering around getting the blinking curser up, and too little on how to create and manage good applications. So, obviously I like our new positioning “up the stack,” not only providing application-centric services, cloud-ified middleware, and the operations capabilities needed keep those application up and running.

In addition to the actual product, you can see this reflected on the team (the evangelist/advocate/community team) I’m on where we’ve added people who focus on explaining how to do better software development, in addition to the more operations-centric people we started with.

Momentum: customer and ecosystem growth and character

Momentum wise, I measure Pivotal Cloud Foundry based on customers and the overall Cloud Foundry ecosystem.

Customer wise, we’ve gone from about $40m in bookings in 2014 to a $100m annual bookings run-rate this year. Those are two, slightly different type numbers, but you can get a feel for the amount of business we’ve been doing, and more important, the high growth and fast traction we’re getting. What I like about out customer base is that they’re everyday, big brands and companies. This not only means I can better explain what I do to my non-tech friends and relatives, but also means we have a sustainable customer base: these Global 2,000 customers aren’t going away anytime soon, esp. if they keep up the strategy that brought them to Pivotal Cloud Foundry: transforming to a software defined business.

There’s a Cloud Foundry Summit this week in Berlin and it evidenced the ecosystem momentum around Cloud Foundry, the open source project that Pivotal Cloud Foundry is based on. There’s now just north of 50 members. When you look at those logos notice how many non-tech companies are on there: it’s still mostly tech companies who want to use or extend Cloud Foundry, but there’s a delightful number of non-tech companies who want to support the platform that’s supporting their business. And, of course, the work with Microsoft to support .Net brings that whole ecosystem very close as well. As I mentioned above, many of the every organization I talk with really wants .Net support. Another interesting thing to watch is growth in use of Azure; that’s an option that I hear companies exploring a lot now-a-days, and, indeed, as Microsoft said in the press around this release, “[t]he demand for Azure was so high that we already have Fortune 100 customers building their next-generation applications with Pivotal Cloud Foundry on Azure.”

Obviously, working at Pivotal I’m highly biased on all this. Still, I think there’s good evidence that things are panning out. My main hope, as always, is that we can help improve the state of software, globally, and, thus, improve how organizations are operating.

More on Pivotal Cloud Foundry 1.6:

Private cloud, still a thing

Round up of some recent private cloud surveys:

A comprehensive 451 Research report recently identified that hosted private clouds today accounted 25 per cent of budget for off-premises infrastructure spending and growing to 29 per cent in two years. Public cloud accounted for 17 per cent today and growing to 18 per cent in two years.

Private cloud has come to include “public private cloud,” hosted/dedicated gear.