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  1. #1
    WHT-BR Top Member
    Data de Ingresso
    Dec 2010

    [EN] The Unexpected Rise of the (Managed) Datacenter

    Gathering Clouds
    January 29, 2016

    For the last five years, industry analysts have predicted that cloud will kill the datacenter. So why are colocation revenues continuing to climb at about 10% a year? Why did Equinix, the largest datacenter provider in the world, see revenues climb 13% YOY in the fourth quarter of 2015? The answer is that as enterprises begin to move “easy” workloads to AWS, they want to move not-ready workloads to a managed environment outside their internal data centers. Somewhat paradoxically, colocation is rising in popularity precisely because enterprises want cloud; it fits well into a hybrid cloud plan, helps enterprises consolidate datacenters, and helps transition people and processes to a shared responsibility model.

    The Decline of the Corporate Datacenter

    Enterprises want out of the datacenter business…eventually. Just 25% of enterprises in North America will build a new datacenter when they run out of space in existing properties, according to a report by 451 Research. A whopping 76% will choose colocation or cloud, followed by 62% who will consolidate existing datacenters. By 2018, 50% of all server racks in North America will be located at cloud and colocation data centers, up from 40% today. They will continue to invest in improving existing datacenters, but seem unwilling to guesstimate their computing needs twenty years into the future or spend hundreds of millions of dollars on non-differentiating technology.

    At a high level, enterprises undergoing digital transformation (that is, 92% of enterprises in North America) are looking to eliminate institutionalized friction — processes and transactions that rely on sequential processes and “functional fiefdoms”. When you run a datacenter, it is hard to escape the hard facts of provisioning speed (slow), absolute control (technicians in the building) and sequential processes (hardware install is more or less sequential by nature). Colocation may improve power efficiency and reduce bandwidth costs, but in the end, the colocation vs. in-house datacenter conversation is not a technology decision — it is a people and process decision. Datacenters are simply inconvenient and inefficient people and process centers.

    Colocation takes one step towards frictionless IT by removing the slowdowns associated with provisioning services like AC, security, etc. But they still need their own staff to replace cores, add new hardware, and coordinate with line of business teams. What enterprises really want is a cloud responsibility model in the datacenter: the ability to provision new compute resources abstractly, with minimal process or delay. They actually want managed colocation so that someone with better processes and scale can do that work faster, invisibly.

    Connecting Colocation + AWS

    Although colocation is normally a people and process decision, there is an important technology benefit of colocation: super-fast private connections to the public cloud. It is no accident that Equinix’s fastest growing revenue segment is private connections to AWS. Enterprises also want low-latency connections to the public cloud for a number of reasons. First and most urgently, they want to build hybrid environments where data is transmitted quickly and cheaply between dedicated hardware and the cloud. AWS Direct Connect can cut data transfer fees by two to ten times and result in more reliable connections than other forms of connection between a datacenter and AWS. It is also more secure than connecting to AWS over the internet.

    But again, the hardest part of transitioning to the cloud is not refactoring applications or preparing data pipelines, but preparing new service definitions and security / compliance models. Managed colocation encourages CSOs and security teams to figure out a shared security, compliance, and management model now, where services are divided between a 3rd party platform (the colocation provider), a managed service provider, and internal teams. This model is similar in most ways to a cloud security model, so when these workloads are transferred to the cloud in the future, transferring service definitions will be relatively simple.

    The Virtues of Managed Colocation + Managed AWS

    The value of managed colocation is magnified even further when an enterprise uses the same managed service team for colocation and cloud.

    First, the enterprise gets a single contract, a single set of SLAs, and a single set of security and compliance models. Documentation, auditing, tracking, and ticketing can occur in a single interface or can be divided among lines of business with shared resources.

    Enterprises can also use a single service provider for hybrid applications; the team that reboots your Oracle RAC database communicates directly with the team that must monitor your AWS account for unexpected ramifications of the reboot. Service levels are application-centric and team-centric, not infrastructure-centric. In the entire field of ISVs, consultants, and system integrators that enterprises could choose from, MSPs are uniquely positioned to remove some of the complexity of a cloud process migration.

    Lastly, a managed service provider that have a long history of “traditional” system management plus AWS expertise is quite simply a great tool to have in your backpocket. They can be consulted when migrations get tough, as they understand the nitty-gritty of traditional systems, the cloud, and how traditional applications behave on the cloud.

    The reasons enterprises are migrating to the cloud are well-understood. But we are witnessing an unexpected but logical corollary: the rise of the abstract management layer, and hence managed colocation. If cloud is the future, managed colocation is the transitional architecture that will help enterprises reach these long-term cloud goals.

    Logicworks is an enterprise cloud automation and managed services provider with 22+ years of experience transforming enterprise IT.

  2. #2
    WHT-BR Top Member
    Data de Ingresso
    Dec 2010

    NSX to serve as conduit between enterprise DCs and public clouds

    VMware's cloud-focused NSX virtual networking software will land in a crowded market of traditional vendors, such as Cisco, startups and even the cloud providers themselves. Amazon and Microsoft are developing interconnect technology to integrate their services with customers' data centers.

    Antone Gonsalves
    28 Jan 2016

    VMware's plan for countering dwindling sales of older technology includes a new version of NSX that creates a network overlay for application traffic between an enterprise's data center and the Amazon and Microsoft public clouds.

    The new virtual networking software will provide "connectivity, security and visibility across multi-cloud IT resources regardless of whether the underlying infrastructure is VMware-based or not," VMware CEO Pat Gelsinger told financial analysts this week during a conference call.

    The software, which is scheduled for release this year, is undergoing testing with Amazon Web Services as the cloud provider, Gelsinger said. To complement the new product, VMware plans to add support in the vRealize Suite, which will manage workloads hosted on AWS and Microsoft's public cloud, Azure.

    This year will be a "key transition year" for VMware, as revenue from the company's new technologies, including NSX, vSAN and AirWatch, is expected to supersede declining growth in the company's traditional data center virtualization products, Gelsinger said. VSAN dynamically adjusts storage to changes in VMware-based virtualized computing environments. AirWatch is the company's enterprise mobility management software.

    "We've recognized that our blockbuster compute products are reaching maturity and will represent a decreasing portion of our business going forward, even as they continue to be a powerful springboard for building our new businesses," Gelsinger said, according to a transcript of the call on the financial site Seeking Alpha.

    VMware has built a multibillion-dollar business on the tools it sells for virtualizing applications in the data center. With growth in that business falling, VMware is redesigning its technology as enterprise customers reduce data center infrastructure costs by migrating applications to the cloud.

    In 2015, worldwide spending on public cloud services grew at a rate six times that of overall IT spending, according to IDC. The money enterprises spend on public cloud services is expected to increase from $70 billion last year to $141 billion in 2019.

    VMware challenges in the cloud

    VMware's cloud-focused NSX virtual networking software will land in a crowded market of traditional vendors, such as Cisco; startups and even the cloud providers themselves. Amazon and Microsoft are developing interconnect technology to integrate their services with customers' data centers.

    Some analysts believe that most enterprises don't need to connect their virtualized environments with public clouds.

    "Trying to build a layer between the two may seem like a great idea but the need is really small because customers typically don't see these areas overlapping as much as VMware does," said John Fruehe, an analyst at Moor Insights & Strategy based in Austin, Texas. "Things are either in the cloud or the data center -- rarely both."

    Also, NSX is more expensive than many alternatives, Fruehe said. "There are other less complicated options for optimizing that data center to cloud connection."

    What VMware is promising to do -- align storage, computing and networking between enterprises and public clouds -- is "easy in concept, but actually delivering it in production is extremely difficult," Andrew Lerner, an analyst at Gartner, said. "It is a complicated and tedious problem to tackle, and no single vendor has nailed it down yet, although many vendors are trying."

    Nevertheless, VMware is pinning sales growth on the success of its virtual networking software and its other new technologies. The company will spend more money this year on its specialized network and security sales force for NSX, executives told analysts.

    Also, to develop and sell its new products, VMware intends to tap resources freed up from a restructuring that led to the elimination of 800 jobs. Executives announced the cuts while releasing earnings for the fourth quarter of 2015.

    vCloud Air pared down

    VMware's focus on NSX comes as the company reduces its ambitions for its public cloud, vCloud Air. The cloud computing service is based on the company's vSphere virtualization platform.

    "The service will have narrower focus providing specialized cloud software and services unique to VMware and distinct from other public cloud providers," Gelsinger said.

    The reduction in plans for vCloud Air and the NSX product strategy "suggests that VMware acknowledges that others dominate public cloud," Brad Casemore, an analyst at IDC, said.

    Technology aside, VMware's biggest problem will be navigating the turmoil brought on by Dell's pending $67 billion acquisition of parent company EMC. Announced last fall, the deal has contributed to a more than 40% drop in VMware shares over the last year.

    For 2016, VMware forecast revenue that fell below analyst estimates. The company expected revenues between $6.785 billion and $6.935 billion, a 2% to 4% increase over 2015. Analysts had expected revenue of $7.2 billion, a jump of 9% over last year, according to Thomson Reuters.

  3. #3
    WHT-BR Top Member
    Data de Ingresso
    Dec 2010
    Última edição por 5ms; 02-02-2016 às 00:00.

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