Welcome!

@BigDataExpo Authors: Pat Romanski, Elizabeth White, Liz McMillan, Rishi Bhargava, ManageEngine IT Matters

Related Topics: @CloudExpo, Java IoT, Microservices Expo, Linux Containers, Containers Expo Blog, SDN Journal

@CloudExpo: Article

Who Will Win the Enterprise Cloud Race in 2014?

As each vendor makes a move to build a top-tier enterprise cloud, others will counter

And the race is on. The cloud industry is abuzz with recent M&A and product news pointing towards what appears to be the Holy Grail for helping large companies move to the cloud with confidence. Both private and public cloud vendors are vying for a spot in the relatively new and rapidly growing market segment of enterprise cloud. CenturyLink swooped up Tier 3 in an attempt to establish a stronger enterprise offering; Amazon Web Services (AWS) announced its enterprise play at re:Invent; IBM acquired SoftLayer; and even the Google Compute Engine has been quick to follow in the footsteps of its competitors.

As each vendor makes a move to build a top-tier enterprise cloud, others will counter. With so much product and M&A activity going on, all that's left to ask is: What's next?

Enterprise Cloud Market Dynamics
Now that the basic self-service public cloud has been fine-tuned and heavily utilized (and with very little empty space given AWS' significant presence), cloud vendors are pivoting to take advantage of new market segments surrounding the enterprise.

Enterprise IT is rightly risk averse. They have high expectations of uninterrupted performance and need to meet the highest standards for security and compliance. Enterprises traditionally run a complex IT operation supporting many different applications, and require high levels of performance and security.

Moving these production and mission-critical applications to the cloud is by no means an easy feat. Most applications pre-date the cloud and were not written to adapt to its dynamic, on-demand and shared resources. Cloud vendors cannot simply rebrand a (dedicated) hosting offer as cloud for enterprises and expect adoption; the proper tools and capabilities must be in place.

Security and performance mean everything to enterprises. They need to meet stringent business and audit requirements. Cloud providers are working feverishly to adhere to these criteria, hence the recent push throughout the cloud industry for enhanced cloud security compliance standards and performance assured SLAs.

To stay ahead of the curve and address enterprise needs, companies like CenturyLink, and IBM earlier this year, pinpointed valuable technologies and acquired them. They are now integrating the solutions of these acquisitions, Tier 3 and SoftLayer respectively, to better optimize compute memory, network and storage. We've also seen new capabilities added to enhance existing software solutions (with announcements by VMware, various open stack vendors, Joyent and my company, Virtustream). Through acquisitions and new product releases, providers are working toward comprehensive cloud stacks that support multiple market segments (SMBs and enterprises, test/dev and production environments).

As a measure of success in the Infrastructure-as-a-Service (IaaS market), the Gartner Magic Quadrant ranks the top 15 providers. In the course of six months, two of the top 15 have been acquired (Tier 3, SoftLayer), two have made major acquisitions to improve their positions (IBM, CenturyLink), two have announced major strategic shifts (Verizon, HP) and there are only three private companies left on the list (Virtustream, Joyent, GoGrid). The chess board is very active.

Enterprise Cloud Is Anyone's Race
The cloud stack wars are intense with large groups like VMware enhancing private virtualization, and open source movements like OpenStack and Apache CloudStack enhancing capabilities and strengthening public multi-tenant clouds. AWS has built a compelling business with their self-service, best-efforts public cloud. OpenStack has begun to build the foundation of an open source alternative, although it is still far off from being a full-function cloud stack. We're also seeing cloud specialists like Virtustream, Tier3, Joyent and smaller start-ups enhancing cloud security, usability, performance and compliance, helping to extend the cloud use cases to mission-critical applications.

AWS's success in the DevOps, SaaS, backup/DR space is impressive, but its impact on the enterprise market has been limited to date. Given that the vast majority of enterprise apps that are ‘traditional' applications (like ERP, CRM, DB and custom applications) are only now beginning to move to the cloud, we have only seen the tip of the iceberg that will rip through the enterprise IT market.

Looking ahead, the only safe prediction to make is that there is a lot more growth in enterprise cloud still to come. We'll see continued enhancements to ‘basic' cloud capabilities, new use cases like ‘classic enterprise applications' and considerable further innovation as more valuable IP and solutions are developed. It remains an open question whether it will be the larger software companies, the public cloud giants or the new innovators who will be the first to develop and deliver well-rounded, full-function cloud stacks.

This year, expect the battle for the enterprise cloud market to heat up even further. As a $3.8 trillion dollar enterprise IT market continues to move to the cloud in 2014, the key players are going to be in flux for some time to come. Right now it's anyone's race but those vendors that can demonstrate enterprise class performance, security and hybrid capabilities will emerge as the winners.

More Stories By Simon Aspinall

Simon Aspinall is the Chief of Vertical Markets, Strategy and Marketing for Virtustream. In this global role, he leads Virtustream's strategic priorities, operates vertical market/sectors (service provider, emerging, industry verticals) and is the company's Chief Marketing Officer (CMO). In the strategy role Simon works with the CEO(s) to set and execute Virtustream's strategic priorities. As CMO Simon is responsible for developing and executing Virtustream's marketing strategy with virtual, interactive viral and traditional marketing for customers, field, social, analyst, press and financial audiences - driving Virtustream's expansion of its xStream software business, Cloud managed services and the launch of a trusted cloud exchange for enterprise-class cloud federation. As Virtustream enters new market sectors and geographies Simon's Vertical Markets role is to rapidly develop these new sectors and grow Virtustream's business through the company's salesteam and partners.

Simon holds a master's degree in engineering and computer science from Oxford University and a master's degree in business administration from INSEAD. He is also a frequent speaker at industry events and a commentator on the IT, telecom, and networking sectors.

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


@BigDataExpo Stories
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportuni...
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and shared the must-have mindsets for removing complexity from the develo...
“We're a global managed hosting provider. Our core customer set is a U.S.-based customer that is looking to go global,” explained Adam Rogers, Managing Director at ANEXIA, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Predictive analytics tools monitor, report, and troubleshoot in order to make proactive decisions about the health, performance, and utilization of storage. Most enterprises combine cloud and on-premise storage, resulting in blended environments of physical, virtual, cloud, and other platforms, which justifies more sophisticated storage analytics. In his session at 18th Cloud Expo, Peter McCallum, Vice President of Datacenter Solutions at FalconStor, discussed using predictive analytics to mon...
Organizations planning enterprise data center consolidation and modernization projects are faced with a challenging, costly reality. Requirements to deploy modern, cloud-native applications simultaneously with traditional client/server applications are almost impossible to achieve with hardware-centric enterprise infrastructure. Compute and network infrastructure are fast moving down a software-defined path, but storage has been a laggard. Until now.
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo Silicon Valley Call for Papers is now open.
IoT is rapidly changing the way enterprises are using data to improve business decision-making. In order to derive business value, organizations must unlock insights from the data gathered and then act on these. In their session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, and Peter Shashkin, Head of Development Department at EastBanc Technologies, discussed how one organization leveraged IoT, cloud technology and data analysis to improve customer experiences and effi...
"We've discovered that after shows 80% if leads that people get, 80% of the conversations end up on the show floor, meaning people forget about it, people forget who they talk to, people forget that there are actual business opportunities to be had here so we try to help out and keep the conversations going," explained Jeff Mesnik, Founder and President of ContentMX, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
"When you think about the data center today, there's constant evolution, The evolution of the data center and the needs of the consumer of technology change, and they change constantly," stated Matt Kalmenson, VP of Sales, Service and Cloud Providers at Veeam Software, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Let’s face it, embracing new storage technologies, capabilities and upgrading to new hardware often adds complexity and increases costs. In his session at 18th Cloud Expo, Seth Oxenhorn, Vice President of Business Development & Alliances at FalconStor, discussed how a truly heterogeneous software-defined storage approach can add value to legacy platforms and heterogeneous environments. The result reduces complexity, significantly lowers cost, and provides IT organizations with improved efficienc...
With 15% of enterprises adopting a hybrid IT strategy, you need to set a plan to integrate hybrid cloud throughout your infrastructure. In his session at 18th Cloud Expo, Steven Dreher, Director of Solutions Architecture at Green House Data, discussed how to plan for shifting resource requirements, overcome challenges, and implement hybrid IT alongside your existing data center assets. Highlights included anticipating workload, cost and resource calculations, integrating services on both sides...
In his session at @DevOpsSummit at 19th Cloud Expo, Yoseph Reuveni, Director of Software Engineering at Jet.com, will discuss Jet.com's journey into containerizing Microsoft-based technologies like C# and F# into Docker. He will talk about lessons learned and challenges faced, the Mono framework tryout and how they deployed everything into Azure cloud. Yoseph Reuveni is a technology leader with unique experience developing and running high throughput (over 1M tps) distributed systems with extre...
Manufacturers are embracing the Industrial Internet the same way consumers are leveraging Fitbits – to improve overall health and wellness. Both can provide consistent measurement, visibility, and suggest performance improvements customized to help reach goals. Fitbit users can view real-time data and make adjustments to increase their activity. In his session at @ThingsExpo, Mark Bernardo Professional Services Leader, Americas, at GE Digital, discussed how leveraging the Industrial Internet a...
Big Data engines are powering a lot of service businesses right now. Data is collected from users from wearable technologies, web behaviors, purchase behavior as well as several arbitrary data points we’d never think of. The demand for faster and bigger engines to crunch and serve up the data to services is growing exponentially. You see a LOT of correlation between “Cloud” and “Big Data” but on Big Data and “Hybrid,” where hybrid hosting is the sanest approach to the Big Data Infrastructure pro...
Cloud analytics is dramatically altering business intelligence. Some businesses will capitalize on these promising new technologies and gain key insights that’ll help them gain competitive advantage. And others won’t. Whether you’re a business leader, an IT manager, or an analyst, we want to help you and the people you need to influence with a free copy of “Cloud Analytics for Dummies,” the essential guide to this explosive new space for business intelligence.
"My role is working with customers, helping them go through this digital transformation. I spend a lot of time talking to banks, big industries, manufacturers working through how they are integrating and transforming their IT platforms and moving them forward," explained William Morrish, General Manager Product Sales at Interoute, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
A critical component of any IoT project is what to do with all the data being generated. This data needs to be captured, processed, structured, and stored in a way to facilitate different kinds of queries. Traditional data warehouse and analytical systems are mature technologies that can be used to handle certain kinds of queries, but they are not always well suited to many problems, particularly when there is a need for real-time insights.
Choosing the right cloud for your workloads is a balancing act that can cost your organization time, money and aggravation - unless you get it right the first time. Economics, speed, performance, accessibility, administrative needs and security all play a vital role in dictating your approach to the cloud. Without knowing the right questions to ask, you could wind up paying for capacity you'll never need or underestimating the resources required to run your applications.
"Software-defined storage is a big problem in this industry because so many people have different definitions as they see fit to use it," stated Peter McCallum, VP of Datacenter Solutions at FalconStor Software, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
The best-practices for building IoT applications with Go Code that attendees can use to build their own IoT applications. In his session at @ThingsExpo, Indraneel Mitra, Senior Solutions Architect & Technology Evangelist at Cognizant, provided valuable information and resources for both novice and experienced developers on how to get started with IoT and Golang in a day. He also provided information on how to use Intel Arduino Kit, Go Robotics API and AWS IoT stack to build an application tha...