Specialized industries can benefit from private & hybrid cloud deployments

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A Pathfinder paper navigates decision-makers through the issues surrounding a specific technology or business case, explores the business value of adoption, and recommends the range of considerations and concrete next steps in the decision-making process.

Cloud computing continues to displace traditional IT across corporate landscapes, as the flexibility that cloud platforms offer translates directly to an organization’s ability to move nimbly along with the market it serves. The practice of ‘doing business’ is likewise shifting to data-driven workflows that prioritize customer experiences with digital, instant-gratification offerings. These experiences are the cornerstone of cloud or digital transformations – reimagined business models, reengineered business operations, and new ways of engaging with extended business ecosystems of customers, employees and suppliers. However, IT decision-makers in certain industries find themselves looking on with envy at the experiences enabled by the cloud transformations of companies they interact with as consumers– through the use of cloud technology, the way we consume media, buy groceries and rent a car have all radically changed in the last decade. These disruptive advancements are largely unrealized in industries buried under the weight of legacy workloads and infrastructure, as well as regulatory policies written before the advent of cloud computing.

Just as there are different types of clouds in meteorology (e.g., cumulus, cirrus and cumulonimbus), which are formed as environmental factors dictate, so there are different types of cloud-delivered computing across different business verticals as workload and regulatory requirements dictate.

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Dan Joe

Tom Jane

Lauren Alfred

Sean Blane

Stephanie Sol

Tammy Bees

Susane Las

Name of Service

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Title

Dan Joe

Title

Tom Jane

Title

Lauren Alfred

Title

Sean Blane

Title

Stephanie Sol

Title

Tammy Bees

Title

Susane Las

Title

About this paper

A 451 Research S&P Global Market Intelligence Pathfinder Paper

Executive Summary

Diverse Workloads and Priorities Drive Businesses Toward Hybrid Cloud Deployments

Cloud computing has established a firm foothold in enterprise IT planning, with cloud-delivered services in use to some extent at nearly every business. While the spectrum of potential technologies – and the opportunities and implications of those technologies – are varied, cloud services are widely regarded as presenting a set of business benefits. These include improved application performance and reliability, cost savings, and also access and agility to adopt new technologies. Businesses perceive cloud as a way of developing new capabilities, as well as a destination for existing systems to be improved and modernized. While public cloud platform operators tout the expansiveness of their respective feature sets, a diverse set of priorities influence the IT strategy embarked upon by businesses. For many firms, a hybrid cloud approach provides the ability to shape their cloud to meet technical and compliance requirements. Hybrid cloud enables a diversified IT environment encompassing both external public cloud resources and private cloud resources hosted on-premises or within service provider data centers.

Hybrid cloud is more than a middle ground between public and private clouds and involves more than simply running different workloads in different IT environments. Fully realized hybrid cloud deployments integrate compute, storage, security, networking, applications and management into a common, highly orchestrated on-site/off-site IT operations ‘workspace,’ enabling developers and operations personnel to leverage the speed and agility of public cloud in concert with the existing tools, systems and policies being used in the enterprise datacenter.

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Drivers of Hybrid IT Adoption

Cost optimization across on-premises and public cloud resources

Extend the IT resource capacity of existing on-premises infrastructure without capital expense

Need for an off-site location for backup/disaster recovery/business continuity

Enable workload migration among different environments as needed

46%

42%

41%

29%

Bring disparate IT environments together under a single management framework

Enable workload components to operate in different environments

28%

22%

Cost optimization across on-premises and public cloud resources

Extend the IT resource capacity of existing on-premises infrastructure without capital expense

is the most frequently cited priority among organizations currently using or planning to use a hybrid IT infrastructure. Determining data and workload residency for each application can aid in reducing public cloud resource utilization, extracting further savings.

Cost optimization

this allows organizations to offload ‘burst’ workloads to public cloud environments as needed, eliminating the need to replace existing hardware or require additional infrastructure.

Extend resource capacity

this is closely related to extending resource capacity as some organizations require workloads to move between public cloud regions, across public cloud providers, or between public and private cloud resources.

Enable workload components to operate in different environments

Off-site backup and disaster recovery

via hybrid cloud allows organizations to take advantage of differentiated storage offerings in the cloud. A scenario with encrypted ‘at rest’ data in a public cloud for backup/compliance purposes with secured data in a private cloud typically satisfies the requirements for highly regulated industries.

Bring disparate IT environments under a single management framework

through the use of a cloud management platform (CMP), which can significantly reduce total application lifecycle complexity.

Enable workload migration

migration capability provides flexibility for organizations with workloads in transition. The aphorism ‘cloud is not a destination; it is a journey’ often rings true for organizations with difficult-to-move workloads.

Need for an off-site location for backup/disaster recovery/business continuity

Enable workload migration among different environments as needed

Bring disparate IT environments together under a single management framework

Enable workload components to operate in different environments

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In today’s economy, the ability to drive innovation, business value and competitive differentiation is highly cloud-dependent and increasingly application- and data-centric. How can organizations ensure that business strategies are executed in IT environments that are optimized for change and designed to yield ‘return on opportunity’ by enabling continuous, iterative development of new approaches to business models, product innovation and delivery, operational efficiency, employee productivity, and customer engagement? Pairing modernized applications with the best-fit cloud for those applications is the key.

While hybrid cloud provides much flexibility, workloads in flight – that is, applications lifted-and-shifted from ‘traditional’ IT to cloud platforms, yet not fully integrated or modernized – are not well positioned to fully leverage all the benefits that cloud platforms offer. It’s not enough to simply migrate to the cloud. A fully realized cloud transformation, with applications tailored to utilize features that are native to cloud platforms, unlocks the true value of a cloud environment. Executing successfully on this requires prioritization and a clearly defined goal.

Download the full report and learn more about:

Modernizing Mission-Critical Applications

Hosted Private Cloud Is Growing for Specialized Markets

Positive View of Private Cloud Among Performance-Passionate Enterprises

Priorities for Workloads Must Inform Cloud Deployment Decisions

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