The Cube - hack-reduce Launch - Matrix Partners' Antonio Rodriguez with Dave Vellante
Ed. note: This is the third in a three-part series drawn from a major report on Amazon AWS by Wikibon Co-Founder and Chief Analyst David Vellante. The first examined Amazon's formidable AWS strategy. The second looked at how other IaaS service providers can compete successfully with AWS.
Amazon AWS is impressive and has changed the way the industry thinks about enterprise infrastructure, writes Wikibon Chief Analyst David Vellante in his comprehensive new report, "Cloud Computing 2013: The Amazon Gorilla Invades the Enterprise".
. It's catalyzed an entire trend around private cloud and forced organizations to improve agility and become more efficient. Moreover, it's created a new class of cloud service providers that are geared to better serve the enterprise.
As a result, IT organizations (ITOs) will see continued pressure from CEOs and "Shadow IT" to improve agility, simplify IT operations, and cut costs. While prudent CIOs will focus on data governance, privacy, security, and other organizational risks associated with moving to the Public Cloud, the reality is that intensified partnerships with cloud service providers are probably in their future.
The complex nature of enterprise IT infrastructure is a reality that Amazon will try to minimize by picking off the "low hanging fruit." This will naturally mean a good fit for developers, startups, and smaller businesses, but core enterprise IT apps are best not placed on AWS for the foreseeable future.
Amazon marketing, however, will attack enterprise IT suppliers as "gross margin pigs." This could have a negative ripple effect on IT organizations much in the same way as Nicholas Carr's incendiary article and subsequent book "Does IT Matter?" did.
The reality is that typically enterprise IT supports hundreds or even thousands of apps and tens-of-thousands of users, whereas Amazon success stories (e.g. Netflix) typically are with a small number of apps supporting large numbers of users. CIOs must exercise caution and find ways to communicate this dissonance to executive management.
In the next five years, CIOs and their ITOs will spend more time architecting and brokering cloud services and less time setting up and managing infrastructure plumbing. Understanding the right strategic fit and the best "horses for cloud courses" will become more important.
The customers Wikibon spoke with were generally mid-to-large-sized shops. These customers cited several considerations in choosing a cloud service provider:
Data placement is really important.
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Antonio Rodriguez - hack-reduce Launch - theCUBE
The Cube - hack-reduce Launch - Matrix Partners' Antonio Rodriguez with Dave Vellante
Ed. note: This is the third in a three-part series drawn from a major report on Amazon AWS by Wikibon Co-Founder and Chief Analyst David Vellante. The first examined Amazon's formidable AWS strategy. The second looked at how other IaaS service providers can compete successfully with AWS.
Amazon AWS is impressive and has changed the way the industry thinks about enterprise infrastructure, writes Wikibon Chief Analyst David Vellante in his comprehensive new report, "Cloud Computing 2013: The Amazon Gorilla Invades the Enterprise".
. It's catalyzed an entire trend around private cloud and forced organizations to improve agility and become more efficient. Moreover, it's created a new class of cloud service providers that are geared to better serve the enterprise.
As a result, IT organizations (ITOs) will see continued pressure from CEOs and "Shadow IT" to improve agility, simplify IT operations, and cut costs. While prudent CIOs will focus on data governance, privacy, security, and other organizational risks associated with moving to the Public Cloud, the reality is that intensified partnerships with cloud service providers are probably in their future.
The complex nature of enterprise IT infrastructure is a reality that Amazon will try to minimize by picking off the "low hanging fruit." This will naturally mean a good fit for developers, startups, and smaller businesses, but core enterprise IT apps are best not placed on AWS for the foreseeable future.
Amazon marketing, however, will attack enterprise IT suppliers as "gross margin pigs." This could have a negative ripple effect on IT organizations much in the same way as Nicholas Carr's incendiary article and subsequent book "Does IT Matter?" did.
The reality is that typically enterprise IT supports hundreds or even thousands of apps and tens-of-thousands of users, whereas Amazon success stories (e.g. Netflix) typically are with a small number of apps supporting large numbers of users. CIOs must exercise caution and find ways to communicate this dissonance to executive management.
In the next five years, CIOs and their ITOs will spend more time architecting and brokering cloud services and less time setting up and managing infrastructure plumbing. Understanding the right strategic fit and the best "horses for cloud courses" will become more important.
The customers Wikibon spoke with were generally mid-to-large-sized shops. These customers cited several considerations in choosing a cloud service provider:
Data placement is really important.
