Click here to close now.

Welcome!

Big Data Journal Authors: Irit Gillath, Elizabeth White, Liz McMillan, Carmen Gonzalez, Pat Romanski

Related Topics: Cloud Expo, Java, SOA & WOA, Linux, Virtualization, SDN Journal

Cloud Expo: 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
Even as cloud and managed services grow increasingly central to business strategy and performance, challenges remain. The biggest sticking point for companies seeking to capitalize on the cloud is data security. Keeping data safe is an issue in any computing environment, and it has been a focus since the earliest days of the cloud revolution. Understandably so: a lot can go wrong when you allow valuable information to live outside the firewall. Recent revelations about government snooping, along...
FedRAMP is mandatory for government cloud deployments and businesses need to comply in order to provide services for federal engagements. In his session at 16th Cloud Expo, Abel Sussman, Director for Coalfire Public Sector practice, will review the Federal Risk and Authorization Management Program (FedRAMP) process and provide advice on overcoming common compliance obstacles.
The cloud is now a fact of life but generating recurring revenues that are driven by solutions and services on a consumption model have been hard to implement, until now. In their session at 16th Cloud Expo, Ermanno Bonifazi, CEO & Founder of Solgenia, and Ian Khan, Global Strategic Positioning & Brand Manager at Solgenia, will discuss how a top European telco has leveraged the innovative recurring revenue generating capability of the consumption cloud to enable a unique cloud monetization mod...
As organizations shift toward IT-as-a-service models, the need for managing and protecting data residing across physical, virtual, and now cloud environments grows with it. CommVault can ensure protection &E-Discovery of your data – whether in a private cloud, a Service Provider delivered public cloud, or a hybrid cloud environment – across the heterogeneous enterprise. In his session at 16th Cloud Expo, Randy De Meno, Chief Technologist - Windows Products and Microsoft Partnerships, will disc...
Are your applications getting in the way of your business strategy? It’s time to rethink your IT approach. In his session at 16th Cloud Expo, Madhukar Kumar, Vice President, Product Management at Liaison Technologies, will discuss a new data-centric approach to IT that allows your data, not applications, to inform business strategy. By moving away from an application-centric IT model where data integration and analysis are subservient to the constraints of applications, your organization will b...
Docker is an excellent platform for organizations interested in running microservices. It offers portability and consistency between development and production environments, quick provisioning times, and a simple way to isolate services. In his session at DevOps Summit at 16th Cloud Expo, Shannon Williams, co-founder of Rancher Labs, will walk through these and other benefits of using Docker to run microservices, and provide an overview of RancherOS, a minimalist distribution of Linux designed...
Analytics is the foundation of smart data and now, with the ability to run Hadoop directly on smart storage systems like Cloudian HyperStore, enterprises will gain huge business advantages in terms of scalability, efficiency and cost savings as they move closer to realizing the potential of the Internet of Things. In his session at 16th Cloud Expo, Paul Turner, technology evangelist and CMO at Cloudian, Inc., will discuss the revolutionary notion that the storage world is transitioning from me...
The Software Defined Data Center (SDDC), which enables organizations to seamlessly run in a hybrid cloud model (public + private cloud), is here to stay. IDC estimates that the software-defined networking market will be valued at $3.7 billion by 2016. Security is a key component and benefit of the SDDC, and offers an opportunity to build security 'from the ground up' and weave it into the environment from day one. In his session at 16th Cloud Expo, Reuven Harrison, CTO and Co-Founder of Tufin,...
Cloud data governance was previously an avoided function when cloud deployments were relatively small. With the rapid adoption in public cloud – both rogue and sanctioned, it’s not uncommon to find regulated data dumped into public cloud and unprotected. This is why enterprises and cloud providers alike need to embrace a cloud data governance function and map policies, processes and technology controls accordingly. In her session at 15th Cloud Expo, Evelyn de Souza, Data Privacy and Compliance...
Roberto Medrano, Executive Vice President at SOA Software, had reached 30,000 page views on his home page - http://RobertoMedrano.SYS-CON.com/ - on the SYS-CON family of online magazines, which includes Cloud Computing Journal, Internet of Things Journal, Big Data Journal, and SOA World Magazine. He is a recognized executive in the information technology fields of SOA, internet security, governance, and compliance. He has extensive experience with both start-ups and large companies, having been ...
There are many considerations when moving applications from on-premise to cloud. It is critical to understand the benefits and also challenges of this migration. A successful migration will result in lower Total Cost of Ownership, yet offer the same or higher level of robustness. In his session at 15th Cloud Expo, Michael Meiner, an Engineering Director at Oracle, Corporation, will analyze a range of cloud offerings (IaaS, PaaS, SaaS) and discuss the benefits/challenges of migrating to each of...
Every innovation or invention was originally a daydream. You like to imagine a “what-if” scenario. And with all the attention being paid to the so-called Internet of Things (IoT) you don’t have to stretch the imagination too much to see how this may impact commercial and homeowners insurance. We’re beyond the point of accepting this as a leap of faith. The groundwork is laid. Now it’s just a matter of time. We can thank the inventors of smart thermostats for developing a practical business a...
The industrial software market has treated data with the mentality of “collect everything now, worry about how to use it later.” We now find ourselves buried in data, with the pervasive connectivity of the (Industrial) Internet of Things only piling on more numbers. There’s too much data and not enough information. In his session at @ThingsExpo, Bob Gates, Global Marketing Director, GE’s Intelligent Platforms business, to discuss how realizing the power of IoT, software developers are now focu...
We certainly live in interesting technological times. And no more interesting than the current competing IoT standards for connectivity. Various standards bodies, approaches, and ecosystems are vying for mindshare and positioning for a competitive edge. It is clear that when the dust settles, we will have new protocols, evolved protocols, that will change the way we interact with devices and infrastructure. We will also have evolved web protocols, like HTTP/2, that will be changing the very core...
Operational Hadoop and the Lambda Architecture for Streaming Data Apache Hadoop is emerging as a distributed platform for handling large and fast incoming streams of data. Predictive maintenance, supply chain optimization, and Internet-of-Things analysis are examples where Hadoop provides the scalable storage, processing, and analytics platform to gain meaningful insights from granular data that is typically only valuable from a large-scale, aggregate view. One architecture useful for capturing...
SYS-CON Events announced today that Vitria Technology, Inc. will exhibit at SYS-CON’s @ThingsExpo, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Vitria will showcase the company’s new IoT Analytics Platform through live demonstrations at booth #330. Vitria’s IoT Analytics Platform, fully integrated and powered by an operational intelligence engine, enables customers to rapidly build and operationalize advanced analytics to deliver timely business outcomes ...
Containers and microservices have become topics of intense interest throughout the cloud developer and enterprise IT communities. Accordingly, attendees at the upcoming 16th Cloud Expo at the Javits Center in New York June 9-11 will find fresh new content in a new track called PaaS | Containers & Microservices Containers are not being considered for the first time by the cloud community, but a current era of re-consideration has pushed them to the top of the cloud agenda. With the launch ...
SYS-CON Events announced today that Dyn, the worldwide leader in Internet Performance, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Dyn is a cloud-based Internet Performance company. Dyn helps companies monitor, control, and optimize online infrastructure for an exceptional end-user experience. Through a world-class network and unrivaled, objective intelligence into Internet conditions, Dyn ensures...
CommVault has announced that top industry technology visionaries have joined its leadership team. The addition of leaders from companies such as Oracle, SAP, Microsoft, Cisco, PwC and EMC signals the continuation of CommVault Next, the company's business transformation for sales, go-to-market strategies, pricing and packaging and technology innovation. The company also announced that it had realigned its structure to create business units to more directly match how customers evaluate, deploy, op...
In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect at GE, and Ibrahim Gokcen, who leads GE's advanced IoT analytics, focused on the Internet of Things / Industrial Internet and how to make it operational for business end-users. Learn about the challenges posed by machine and sensor data and how to marry it with enterprise data. They also discussed the tips and tricks to provide the Industrial Internet as an end-user consumable service using Big Data Analytics and Industrial C...