[EN] Why is the private cloud market so much smaller than public cloud?
Public cloud infrastructure-as-a-service (IaaS) is 3.5 times the size of the true private cloud market
True Private Cloud Market Share
Bert Latamore | Feb 5, 2016
Public cloud infrastructure-as-a-service (IaaS) is 3.5 times the size of the true private cloud market, based on Wikibon’s recently released “Private Cloud Market Sizing and Forecast for 2015-2026”. Given that internal IT organizations increasingly compete with public sites such as Amazon Web Services LLC (AWS) and Microsoft Azure, why is the uptake of true private cloud happening so slowly? asks Wikibon Cloud Analyst Brian Gracely in his latest Professional Alert.
Gracely finds several reasons for the lag. First, some CIOs still confuse cloud with virtualization. Virtualization is important, but it’s focused on automating management of IT infrastructure and its ROI is basically from cost savings in the IT budget due to increased utilization of servers in particular and from freeing technicians from constant manual re-optimization of the infrastructure to focus on higher-value tasks.
Cloud, in contrast, provides developers and end-users with direct access to the IT services, including applications via software-as-a-service (SaaS), on demand. One of the reasons AWS has been so popular with developers, for instance, is that coders can dial up virtual machines in minutes on a credit card as they need them and then shut them down again when finished. SaaS is becoming the preferred location for stable applications largely because end-users can gain immediate access, eliminating the lengthy delays in implementing and managing those applications in-house. As a result shadow IT, a term that once meant power users helping fellow employees with PC applications, now has come to mean the wholesale replacement of internal business applications with SaaS contracted not by the CIO but by business leaders.
True private cloud is rare
A second reason for the slow uptake of true private cloud is that many vendors do not yet provide a platform that can duplicate what is available in the public cloud. One reason is that cloud management is not a high-revenue business or a high-priority IT focus. The leading independent automation frameworks – Chef Software Inc., Puppet Labs Inc., etc. – generate $100 million or less in annual revenues, Gracely notes. Several cloud management startups have been acquired by larger players such as Red Hat Inc., EMC and Dell Inc., but because IT organizations haven’t made these tool sets a high priority, vendors haven’t either. One reason IT organizations are not excited by cloud management is because it requires development of a new set of skills. In contrast, these features are embedded in public cloud offerings, embedded behind self-service portals and programmable APIs.
Another problem is that many of the services offered to end-users by public cloud organizations, such as database-as-a-service, data management, elastic load-balancing and auto-scaling are managed internally by groups outside the IT organization. Therefore they haven’t been a priority for delivery as-a-service directly to users. The availability of such services in private clouds has been a significant factor in the expansion of shadow IT in many organizations.
Another problem is that IT organizations often focus their private cloud projects on common, standard business applications such as Oracle databases or Microsoft Sharepoint. But these mature core business applications are exactly the primary targets for software-as-a-service, which makes it difficult for internal IT to develop a ROI for keeping them in-house.
This leaves in-house software development as the primary value of private cloud, Gracely writes. But this puts internal IT in direct competition with the online platform-as-a-service providers, including AWS, Azure and IBM Bluemix. And most of that new software will be focused on public cloud implementation. That means that to compete, the private cloud has to provide services that duplicate those offered by the public cloud platforms.
User expectations for IT have shifted. Users now expect their internal IT organizations to be as flexible and responsive as SalesForce.com and AWS – available on demand when needed with the desired capabilities. When it isn’t, users are increasingly likely to get out their corporate credit cards and sign up for a public service that is. To compete, therefore, IT needs what Wikibon calls “true private cloud” which provides the same end-user focused services and direct availability that their users find in the public cloud.
CIOs and IT organizations building private clouds need to set the bar higher for services delivered to business users, Gracely writes. Wikibon’s true private cloud model stresses strong alignment with public cloud services. The true private cloud framework allows IT to reduce costs and focus less on non-differentiated infrastructure capabilities while allocating more time and resources to application-level services that can differentiate the business.
15 Years of the Cloud. How is the market maturing?
What the latest IDG Connect industry research tells us
We've witnessed a lot of change since industry analysts IDG Connect last undertook research into the influences surrounding cloud adoption and the effects it is having on the workplace. We're delighted to present the key findings of the latest report.
For this (phase two) research, IDG Connect surveyed more than 450 C-level and IT decision makers from organisations within EMEA. They came from multiple industries and each have more than 250 employees. It reveals several key insights that show how cloud technology has developed since the first research was completed in January 2015, and it shows how cloud strategies differ across various industries and geographies.
It also explores the many developments in cloud dependency among enterprise organisations and how cloud infrastructure and cloud platforms are becoming ever more critical to innovation and the development of new markets.
The various assets and resources we've made available here include a summary report of the research findings, which details key insights and comparisons between both the phases.
Key points include:
How quickly cloud has matured as a deployed platform – We'll be comparing the results of both phases of the research. We'll also explore geo and cross-sector insights, with particular focus on rate of adoption and reasons that might cause quicker or slower response.
Security – The report details why this is still a concern for customers when developing cloud strategies and what cloud vendors need in place to protect customers' data.
Most important types of private cloud – We'll look at the big increase in DBaaS (Database as a Service) since Phase 1 and explore why it's moving up the list of priorities.
Comparisons between the Phases I and II in terms of how IT Change Management and IT ecosystems have developed – We discover why being prepared for change (in terms of of skills, communications to the business, standardisation, scalability, network bandwidth & visualisation) are so important.
The maturity of the cloud market
The latest research results for your region
The most up to date industry research reveals insights into how the cloud market is maturing and looks at current adoption barriers, customer experiences and future plans for private cloud. Choose from the following reports where you'll find a summary of the results for that region.
Then and Now - The changing landscape of cloud computing
Then: Oracle Private Cloud Research. January 2015
In this first phase of research into the cloud computing landscape, we explore the various barriers to adoption, the different levels of deployment and look at customer experiences and their plans for private cloud. Download report>>
Now: The Latest Key Findings
This is the very latest research, revealing the biggest business challenges that are driving cloud adoption for CIOs, enterprise architects and IT professionals. It also compares how cloud consumption has matured over time and evolution of deployment strategies
Download latest report>>
What the experts say
In this webcast Oracle cloud experts share their reactions to the findings and present their views on how cloud is being utilised to transform the way enterprise organisations operate. COMING SOON>>
Diving deeper into the results
We've made the full data-set behind the latest report available for you to drill down into. Compare the results that matter most to you, create your own insights and make your own conclusions.
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I was looking forward to joining Wikibon's #crowdchat on "True Private Clouds" last Thursday. I enjoy the topic, the participants and the platform.
As is so often the case, it turned out that my travel plans didn't align, so I tried to catch up afterwards.
It's probably good that I missed it, as I certainly would have been seen as a disruptive influence
Make no mistake: I know and like the gang at Wikibon. We've all been around the industry for quite a while.
But even a great bunch of guys can have a bad day once in a while.
In Search Of The "True Private Cloud"
Brian Gracely took a stab at elevating the industry discussion around private clouds at the end of last year. It's a quick read here.
TL;DR version: a "true" private cloud is presumably sold and supported by a single vendor: hardware, operating system and hypervisor. I think the goal here is to differentiate against the familiar practice of rolling-your-own from different vendors.
Not to quibble, but I think Brian is attempting to describe a better way of going about obtaining a private cloud: e.g. get it all from one vendor, and saving yourself a bunch of time and money.
I agree with his premise, but not in labeling something "true" or "false". Why? There are precious few absolutes in this industry.
I have met more that a few IT shops who've taken their favorite hypervisor, implemented it on their favorite hardware, and inserted their favorite operating system.
They say they are happy with the results, and who are we to impugn on the veracity of their approach?
That being said, the infrastructure biz is clearly moving towards more pre-integration up and down the stack: both on-premises and in the public cloud -- that much we can agree on.
But What About Pragmatic Hybrid Use Cases?
I would encourage Brian and the rest of the gang at Wikibon to look beyond the here-and-now, and extrapolate out just a bit.
My assertion (indeed, one of the big reasons I came to Oracle) is that we won't have the luxury of considering public and private clouds separately for much longer. So many current and future enterprise workloads are candidates for both: working together -- and not separately.
Anyone who's tried to lash public and private together in any meaningful way has come away with the deep realization that it's a lot harder than it looks on the vendors' powerpoint.
Unless the two ends are designed and architected to work together, you're signing up for a living hell of adapters, gateways, dongles, bridges, converters, script code, endless support calls, etc.
Maybe you can invest the time to get something working initially, but of course everything has to be maintained in perpetuity.
And that ain't what cloud is about, is it?
What Really Got Me Going
OK, I was a bit perturbed in Brian's choice of terms, and also thought he might introduce a bit more to the private cloud discussion and its inevitable collision course with incompatible public cloud, but what really got me going is that they published a 2015 market share chart, and -- errr -- completely forgot about Oracle. (Verdade. O gráfico do post #1 é uma segunda versão, publicada após os participantes terem estranhado a Oracle não constar da lista)
Just to be clear: the following Oracle Engineered System products would qualify for inclusion using Brian's definition: Exadata, SuperCluster, Exalogic, Exalytics, Database Appliance, Private Cloud Appliance and Big Data Appliance.
I hope I didn't forget any ...
All share the attribute that hardware, operating system and hypervisor are sold and supported by the same vendor, have a self-service consumption model, etc. I'd go even further to state that Oracle isn't simply assembling other people's products (e.g. VCE), we engineer everything in the stack -- and continue on through the database and applications.
And, oh yes, Oracle provides a compatible public cloud consumption model for most of these private cloud offerings, unlike any other vendor in their roundup.
You might not be thinking public cloud today, but -- trust me -- that train is coming fast. If it isn't part of your thinking today, it should be.
To Their Credit
When one of my co-workers brought the omission to Dave Vellante's attention, he did the right thing: admitted they made a serious error, and attempted to correct their white paper. Still more work to do in the accuracy department, but at least Wikibon has Oracle on their leaderboard. Unfortunate, really, for both us and them.
Wikibon wasn't the first analyst to make a big mistake like this, and they undoubtedly will not be the last.
Lesson: it never hurts to double-check your work prior to publishing