Enterprises Forge Ahead with Hybrid Cloud Plans Market Pulse

WH IT E PA P E R
Enterprises Forge Ahead
with Hybrid Cloud Plans
Market
Pulse
As digital business initiatives rise, IT organizations seek low-cost,
low-risk opportunities to increase agility.
IT organizations have budgeted major spending increases
for cloud projects this year, according to a Computerworld 2015
Forecast Study, and IDC predicts that more than 65% of enterprise IT organizations will commit to hybrid cloud before 2016.1
Quest for Business Agility
Faced with new digital business initiatives, IT organizations are
looking for low-cost, low-risk opportunities to increase agility.
In the IDG Hybrid Cloud survey, 64% of organizations said that
cost efficiencies gained from consolidating IT systems and
infrastructure are a key driver for cloud deployments, while
57% cited speed of deployment and improved agility as most
important.
Science Applications International Corporation (SAIC), a
With hybrid cloud, businesses seek to deliver additional
systems integration and engineering firm had an agile develop-
value from the investments they’ve made in their on-premises
ment environment, but needed an agile IT delivery platform
data center architectures by extending them to the public
to go along with it. With its new hybrid cloud, “We have a
cloud. IT organizations say they would like one set of adminis-
mechanism to very rapidly migrate workloads and data sets
trative tools, policies and controls to manage all on-premises
from private cloud to public cloud and back again with very
and off-premises assets. They also want assurances that
minimal engineering and administration interaction from our IT
cloud services can meet their performance, uptime, security
team,” says Coby Holloway, vice president, cloud computing
and compliance requirements before they’re willing to move
and business transformation.
forward with extending large-scale and tier-one applications to
SAIC is part of a wave of enterprises moving toward hybrid
the cloud.
cloud. In a 2015 IDG Hybrid Cloud research study sponsored
by EMC and VMware, 75% of companies with 1,000 or more
What’s Driving Adoption
employees said that they either had integrated or wanted to
This new phase of cloud adoption is driven by the need to
integrate public cloud services with their on-premises data
respond faster and with more agility in an effort to increase
center resources.
bottom-line efficiency. Although just 30% of workloads are
cloud-based today, IT managers expect that number to rise
to more than 50% within two years. And IT services delivered
on a hybrid cloud platform will quadruple over the same
period, from 16% today to 44% in 2017, according to a 2015 IDG
Research survey sponsored by EMC and VMware.
But IT doesn’t want to reinvent the wheel to get there:
1
IDC FutureScape: Worldwide Cloud 2015 Predictions Report,
Doc. #23456, December, 2014
2
Market
Pulse
HYBRID CLOUD
3
Market
Pulse
H Y BR I D C L OU D
Evolving technologies, changing attitudes
Drivers of Cloud Implementation
64%
Larger organizations
Speed of deployment/faster
time-to-market
57%
(10,000+ employees) are
more likely than smaller
organizations (66% vs 45%
respectively) to report
Improved agility/
responsiveness to
LOB requests
57%
speed of deployment
as a top driver
50%
are more likely than
vs 40%, respectively) to
50%
report back up/disaster
recovery as a top driver
SOURCE: IDG RESEARCH SERVICES, MARCH 2015
System performance
areas of security, availability, performance and support, and
may lack confidence in some hybrid cloud offerings. While IT
executives have been willing to move some lower-tier applications into the cloud, they’ve held back on mission-critical
applications and large-scale, data intensive workloads.
While 42% of organizations say they would like to deploy a
Smaller organizations
larger organizations (64%
Replacing outdated
systems/modernization
cloud services that add complexity to IT environments. As a
hybrid cloud, they are concerned about the maturity of some
management tools, as well as about having the right environment and tools for developers. Of the 16% of respondents who
have already deployed a hybrid cloud, nearly half (44%) say that
75%
Security and data privacy, or ability to meet
compliance standards, policies and processes
55%
Location
The biggest concern among large enterprises is security
and compliance. “Security and interoperability are our biggest
infrastructure management tools is an important criterion
challenges,” says Cathy Spence, principal engineer for cloud
Strongly agree
37%
25%
55%
35%
30%
Somewhat agree
95%
3%
92%
7%
2%
90%
31%
Neither agree or disagree
12%
7% 1%
81%
3%
79%
22%
46%
19%
4% 1%
17%
43%
resources as a single pool fell short of expectations.
98%
8% 5%
35%
44%
The ability to host existing application
Application deployment or development
operations tools
The ability to provide proper environments and
tools for development teams
Compatibility with existing IT infrastructure
management tools
20%
83%
A clear and predictable cost model
2%
30%
68%
SLAs for performance, system resiliency or uptime
the promised ability to manage off-premises and on-premises
76% of organizations surveyed say compatibility with existing
% Strongly/
Somewhat
Agree
An Important Factor when Evaluating Cloud Service Providers is:
result, some enterprises have had to make compromises in the
Cost efficiencies from
consolidation IT systems/
infrastructure
Back up/disaster recovery/
business continuity
Many organizations today have a mix of incompatible public
15%
33%
Somewhat disagree
78%
9%
16%
76%
2%
50%
Strongly disagree
SOURCE: IDG RESEARCH SERVICES, MARCH 2015
when selecting a cloud service provider, and they would rather
computing at Intel Corp. The chipmaker has extensive security
“It takes us longer internally to raise the purchase order than
not rewrite applications for a hybrid cloud environment.
policies for its private cloud infrastructure. Some security
to provision the service,” he says.
frameworks they have, and even their Active Directory single
Executive Summary: Coming to
Terms with Cloud Terminology
sign-on services across their hybrid public/private cloud
environments. That means having both on-premises and off-
IT executives want to extend their policies, the security
To find a hybrid solution that meets enterprise
which leaves the cultural challenge: learning to trust a public,
needs, IT should drill down in five areas: Security,
Public Cloud – A multi-tenant environment hosted
multi-tenant cloud with more strategic workloads. “That
manageability, compatibility and support. The right
by a third party service provider that delivers scal-
trust is being built,” says Kerravala. “It just takes time.”
platform should offer security capabilities that meet
premises cloud infrastructure connected through a common
able and elastic resources such as software and
platform and management tool set that is capable of running
infrastructure to customers.
both new and existing applications in the same way.
Among large enterprises, cost savings is the primary driver
controls have come a long way, Spence acknowledges,
Private Cloud – A firewall-protected computing
Overall, however, most organizations feel that cloud
business requirements, offer a consistent tool set that
service providers meet their requirements in the areas of
delivers seamless interoperability between private and
performance, availability, and pricing, although perceptions
public cloud components, and provide service levels
of customer support lag behind.
guarantees and support that scale up to meet the
behind cloud deployment, with speed and agility close behind.
environment in which resources such as software
While private cloud allows faster deployment of resources than
and infrastructure are delivered to a single customer
maturity when it comes to handling enterprise workloads.
traditional data center designs, the demand on the underlying
or organization. A private cloud can be implemented
Security, performance, compatibility and support are
market, it’s tempting to focus on price. But IT organizations
infrastructure can still exceed maximum capacity during peak
on premises or externally hosted for exclusive use by
key areas that can vary between service offerings,
that make price a top selection criterion for an enterprise-
the client.
and not all can scale to meet all the requirements of
class cloud service may live to regret it, says Kerravala.
large enterprises.
“You get what you pay for. Do you really want to buy from
periods. Extending applications into external cloud platforms lets
organizations expand available resources almost instantly, eliminating the need to deploy additional data center infrastructure.
Cloud offerings also differ in terms of the level of
Hybrid Cloud – A composition of two or more
requirements of a large enterprise.
With so many low-cost cloud service offerings on the
the lowest cost vendor or from one that costs a little
delivery models (typically as off-premises public
Moving Forward
more that provides better service? Many bad decisions
prises, and the top consideration for small and mid-sized firms.
cloud and on-premises private cloud) that remain
Intel’s hybrid cloud push is still in the proof of concept stage
have been made purely on price.” As more organizations
“Most companies are experts at backing things up, but they
unique entities but are bound together via policy or
– it has yet to settle on a hybrid cloud strategy. But SAIC
move to and become more comfortable with hybrid cloud,
are not good at restoring,” says Zeus Kerravala, principal at ZK
coordinated service provisioning. The goal of hybrid
has moved forward with the VMware vCloud® Air™ hybrid
service and support will become the key differentiators, he
Research. “The cloud lets you do that more easily.” Organiza-
cloud is to integrate multiple delivery models in such
cloud platform. “This enables us to rapidly deliver unique
says. The key is to start with your business requirements
tions also use off-premises cloud services as a failover and
a way that programs and data can migrate seam-
solutions and offerings to our customers.” Holloway says.
and work backwards: Make sure you’re buying what you
recovery site alternative that’s much easier to host and maintain
lessly from one environment to another.
Business continuity is another key factor for large enter-
than building and operating a secondary or tertiary data center.
For James Butler, CEO at Cloud Business, a UK-based IT
consultancy, the move to cloud is about faster cycle times.
need in terms of features, performance levels, security,
and support to run your business effectively.
2
Market
Pulse
HYBRID CLOUD
3
Market
Pulse
H Y BR I D C L OU D
Evolving technologies, changing attitudes
Drivers of Cloud Implementation
64%
Larger organizations
Speed of deployment/faster
time-to-market
57%
(10,000+ employees) are
more likely than smaller
organizations (66% vs 45%
respectively) to report
Improved agility/
responsiveness to
LOB requests
57%
speed of deployment
as a top driver
50%
are more likely than
vs 40%, respectively) to
50%
report back up/disaster
recovery as a top driver
SOURCE: IDG RESEARCH SERVICES, MARCH 2015
System performance
areas of security, availability, performance and support, and
may lack confidence in some hybrid cloud offerings. While IT
executives have been willing to move some lower-tier applications into the cloud, they’ve held back on mission-critical
applications and large-scale, data intensive workloads.
While 42% of organizations say they would like to deploy a
Smaller organizations
larger organizations (64%
Replacing outdated
systems/modernization
cloud services that add complexity to IT environments. As a
hybrid cloud, they are concerned about the maturity of some
management tools, as well as about having the right environment and tools for developers. Of the 16% of respondents who
have already deployed a hybrid cloud, nearly half (44%) say that
75%
Security and data privacy, or ability to meet
compliance standards, policies and processes
55%
Location
The biggest concern among large enterprises is security
and compliance. “Security and interoperability are our biggest
infrastructure management tools is an important criterion
challenges,” says Cathy Spence, principal engineer for cloud
Strongly agree
37%
25%
55%
35%
30%
Somewhat agree
95%
3%
92%
7%
2%
90%
31%
Neither agree or disagree
12%
7% 1%
81%
3%
79%
22%
46%
19%
4% 1%
17%
43%
resources as a single pool fell short of expectations.
98%
8% 5%
35%
44%
The ability to host existing application
Application deployment or development
operations tools
The ability to provide proper environments and
tools for development teams
Compatibility with existing IT infrastructure
management tools
20%
83%
A clear and predictable cost model
2%
30%
68%
SLAs for performance, system resiliency or uptime
the promised ability to manage off-premises and on-premises
76% of organizations surveyed say compatibility with existing
% Strongly/
Somewhat
Agree
An Important Factor when Evaluating Cloud Service Providers is:
result, some enterprises have had to make compromises in the
Cost efficiencies from
consolidation IT systems/
infrastructure
Back up/disaster recovery/
business continuity
Many organizations today have a mix of incompatible public
15%
33%
Somewhat disagree
78%
9%
16%
76%
2%
50%
Strongly disagree
SOURCE: IDG RESEARCH SERVICES, MARCH 2015
when selecting a cloud service provider, and they would rather
computing at Intel Corp. The chipmaker has extensive security
“It takes us longer internally to raise the purchase order than
not rewrite applications for a hybrid cloud environment.
policies for its private cloud infrastructure. Some security
to provision the service,” he says.
frameworks they have, and even their Active Directory single
Executive Summary: Coming to
Terms with Cloud Terminology
sign-on services across their hybrid public/private cloud
environments. That means having both on-premises and off-
IT executives want to extend their policies, the security
To find a hybrid solution that meets enterprise
which leaves the cultural challenge: learning to trust a public,
needs, IT should drill down in five areas: Security,
Public Cloud – A multi-tenant environment hosted
multi-tenant cloud with more strategic workloads. “That
manageability, compatibility and support. The right
by a third party service provider that delivers scal-
trust is being built,” says Kerravala. “It just takes time.”
platform should offer security capabilities that meet
premises cloud infrastructure connected through a common
able and elastic resources such as software and
platform and management tool set that is capable of running
infrastructure to customers.
both new and existing applications in the same way.
Among large enterprises, cost savings is the primary driver
controls have come a long way, Spence acknowledges,
Private Cloud – A firewall-protected computing
Overall, however, most organizations feel that cloud
business requirements, offer a consistent tool set that
service providers meet their requirements in the areas of
delivers seamless interoperability between private and
performance, availability, and pricing, although perceptions
public cloud components, and provide service levels
of customer support lag behind.
guarantees and support that scale up to meet the
behind cloud deployment, with speed and agility close behind.
environment in which resources such as software
While private cloud allows faster deployment of resources than
and infrastructure are delivered to a single customer
maturity when it comes to handling enterprise workloads.
traditional data center designs, the demand on the underlying
or organization. A private cloud can be implemented
Security, performance, compatibility and support are
market, it’s tempting to focus on price. But IT organizations
infrastructure can still exceed maximum capacity during peak
on premises or externally hosted for exclusive use by
key areas that can vary between service offerings,
that make price a top selection criterion for an enterprise-
the client.
and not all can scale to meet all the requirements of
class cloud service may live to regret it, says Kerravala.
large enterprises.
“You get what you pay for. Do you really want to buy from
periods. Extending applications into external cloud platforms lets
organizations expand available resources almost instantly, eliminating the need to deploy additional data center infrastructure.
Cloud offerings also differ in terms of the level of
Hybrid Cloud – A composition of two or more
requirements of a large enterprise.
With so many low-cost cloud service offerings on the
the lowest cost vendor or from one that costs a little
delivery models (typically as off-premises public
Moving Forward
more that provides better service? Many bad decisions
prises, and the top consideration for small and mid-sized firms.
cloud and on-premises private cloud) that remain
Intel’s hybrid cloud push is still in the proof of concept stage
have been made purely on price.” As more organizations
“Most companies are experts at backing things up, but they
unique entities but are bound together via policy or
– it has yet to settle on a hybrid cloud strategy. But SAIC
move to and become more comfortable with hybrid cloud,
are not good at restoring,” says Zeus Kerravala, principal at ZK
coordinated service provisioning. The goal of hybrid
has moved forward with the VMware vCloud® Air™ hybrid
service and support will become the key differentiators, he
Research. “The cloud lets you do that more easily.” Organiza-
cloud is to integrate multiple delivery models in such
cloud platform. “This enables us to rapidly deliver unique
says. The key is to start with your business requirements
tions also use off-premises cloud services as a failover and
a way that programs and data can migrate seam-
solutions and offerings to our customers.” Holloway says.
and work backwards: Make sure you’re buying what you
recovery site alternative that’s much easier to host and maintain
lessly from one environment to another.
Business continuity is another key factor for large enter-
than building and operating a secondary or tertiary data center.
For James Butler, CEO at Cloud Business, a UK-based IT
consultancy, the move to cloud is about faster cycle times.
need in terms of features, performance levels, security,
and support to run your business effectively.
4
Market
Pulse
HYBRID CLOUD
vCloud Air: Delivering Hybrid Cloud for the Enterprise
VMware vCloud Air delivers a fully integrated, scalable
ment environment to balance and optimize application
hybrid cloud solution that meets or exceeds enterprise
workload on- or off-premises,” Say notes.
requirements for security, manageability, compatibility
and support. Here’s how:
Compatibility – vCloud Air simplifies the process of
extending your existing applications or integrating your
Security – vCloud Air adheres to strict compliance
mobile or Web applications with on-premises systems
and security standards and meets all major IT, busi-
and data stores. If you have virtualized your on-prem-
ness, and industry guidelines, including ISO/IEC 27001
ises data center with VMware, you can scale application
Certification, HIPAA/HITECH, SOC 2 Type 2 and SOC 1
capacity faster, extend existing applications more easily,
Type 2, and the Cloud Security Alliance (CSA) Consensus
and build new applications without having to design
Assessments Initiative Questionnaire (CAIQ). VMware
against two different infrastructure technologies. “With
also provides networking services that simplify the
vCloud Air, you can scale your private cloud architecture
task of creating secure network architectures between
out to the public cloud without reconfiguring applica-
on-premises data centers and public cloud services.
tions or other infrastructure,” Say points out.
“To meet heightened customer expectations for IT
security and compliance, vCloud Air adheres to strict
compliance standards,” says Philip Say, senior director,
cloud services marketing at VMware. “And the technologies we have implemented make the design and
deployment of complex network architectures easier
to administer.”
Support – With EMC and VMware, IT receives enterprise-level support it can trust. “Enterprise-level support
has always been the expectation of our customers,”
explains Say. Customers have one number to call for
all support, training and professional services needs
for both on-premises data center and public cloud
services. “Our consultants understand that enterprise-
Manageability – VMware offers one set of tools that
scale design considerations are more complicated
work across private and public cloud resources to
than those for smaller companies, and know how to
assure a consistent application of security policies and
integrate a heterogeneous mix of private and public
controls and support existing applications without code
cloud architectures.”
changes. “By unifying the control between private and
public cloud resources, we provide a common manage-
To learn more about VMware vCloud Air,
visit vcloud.vmware.com
Conclusion
Most organizations are motivated by the potential cost savings,
Enterprise IT leaders plan to make major investments in
as well as improvements in performance, speed and agility that
cloud technology this year. Fifty-two percent say cloud
only a hybrid cloud can deliver.
computing is one of their top priorities for 2015, and 42%
VMware with vCloud® Air™ and EMC are uniquely
plan to increase their budgets for cloud investments,
positioned to deliver value by providing complete interoperability
according to the Computerworld 2015 Forecast Study.
between on-premises private cloud and off-premises public
cloud services, a mature management tool set that works
seamlessly across domains, and the ability to meet even the
most stringent security and compliance requirements.
For more information, please go to:
VCLOUD.VMWARE.COM