(ent312) should you build or buy cloud infrastructure and platforms? | aws re:invent 2014
DESCRIPTION
The public cloud IaaS and PaaS markets are moving at a tremendous speed, and delivering innovative, differentiated services at rapidly-decreasing costs. Yet many IT organizations nevertheless believe that they would prefer to build a private cloud, or have one custom-built for them. Furthermore, the desires of IT Operations and Application Development often clash. Buyers must not only choose a solution that meets their current needs, but figure out how to meet their future needs, too. We'll discuss how to determine a strategy and source the capabilities you need.TRANSCRIPT
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Should You Build or Buy Cloud Infrastructure and Platforms?
AWS re:Invent
13th November 2014Lydia Leong
VP Distinguished Analyst
Cloud Computing
@cloudpundit
@cloudpundit© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
You, the Market, and the Future
Bimodal IT
Cloud IaaS market evolution
What does your future look like?
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Bimodal IT
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A “Digital Tsunami” Is upon Us
CIOs agree: “My business and IT organization are being engulfed by a torrent of digital opportunities. We cannot respond in a timely fashion. This threatens the success of the business, and the credibility of the IT organization.”
@cloudpundit© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
The IT Response: No More One Size Fits All
45%of CIOs currently have a second fast/agile mode of operation
Source: Gartner annual CIO Survey, 2014
@cloudpundit© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
Bimodal IT = Marathon Runners + Sprinters
Mode1 Mode 2
Reliability Goal Agility
Price for performance ValueRevenue, brand, customer
experience
Waterfall, V-Model, high-ceremony IID
ApproachAgile, Kanban,
low-ceremony IID
Plan-driven, approval-based
GovernanceEmpirical, continuous,
process-based
Enterprise suppliers,long-term deals
SourcingSmall, new vendors, short-
term deals
Good at conventionalprocess, projects
TalentGood at new and uncertain
projects
IT-centric, removed from customer
CultureBusiness-centric,close to customer
Long (months) Cycle Times Short (days, weeks)
Think Marathon Runner
Think Sprinter
@cloudpundit© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
Bridge Back from the Island of the Future
Impact on Mode 1
High
LowBimodal Maturity
High
Island
Extend
New Core
Replace-ment
@cloudpundit© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
Bimodal Sourcing for Cloud IaaS
Mode 1 Traditional Mode 2 Agile
LEADERSHIP IT operations / procurement Enterprise architect
PRIMARY NEED Cost reduction Developer productivity
BUDGET Central IT Business
MARKET VIEW Low-cost commodity (?) Highly differentiated
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Mode 1 Mode 2
Stuck in the middle
"Fit for no one"
@cloudpundit© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
Guidelines for Success
1. Fast provisioning != Agility. You can’t sprinkle on agility any more than you can add quality.
2. It’s not just about infrastructure. Think about the entire application stack.
3. It’s not just about the operational benefits. Improve the application lifecycle.
4. The infrastructure isn’t the hard part. Transforming the organization – that’s hard.
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Cloud IaaS Market Evolution
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Cloud IaaS Is Not a Commodity
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Compute Storage Network
Management
Solutions Differentiated solutions
Integrated management
Flexible low-cost resources
IaaS naturally pushes up-market to PaaS.
@cloudpundit© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
IaaS and PaaS: Control vs. Manageability
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SP SP SP SP
Yours YoursAutomation
AssistedSP
Data Center
Virtual Machine
IaaS IaaS+ IaaS++
Yours1-Click
Install
Automation
AssistedSPMiddleware
PaaS
More control Easier management
@cloudpundit© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
IaaS Absorbs PaaS Framework Functions
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PaaS Converged IaaS+PaaS
Containers Containers as a service, running inside VMs
Application runtimes Portable container environments (Docker)
Request router Container-aware load balancing as a service
Service broker Credentials as a service
@cloudpundit© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
Brutal Competitive Dynamics
August 2013 May 2014
From: "Magic Quadrant for Cloud Infrastructure as a Service", 19 August 2013 (G00251789)
From: "Magic Quadrant for Cloud Infrastructure as a Service", 28 May 2014 (G00261698)
@cloudpundit© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
The Advantages of Scale
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Greater efficiency of
Infrastructure Operations
Better leverage of
Software Development
Greater breadth and depth of
Ecosystem
Software is a scale game. No scale = Forced into niche.
@cloudpundit© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
• Market share concentrated with top 2 to 4 providers
• Highly differentiated offerings
• Large number of niche providers
• Niche providers may be more commodity (geographic focus)
• Businesses will use multiple providers
• Businesses will choose 1 or 2 strategic providers
• Most applications will be deployed to a single provider
• Provider for each app chosen by use case
Customers Will Pick Strategic Winners
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What Does Your Future Look Like?
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@cloudpundit© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
Governance, Not Control
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@cloudpundit© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
Strategic Planning Assumptions
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Not everything can or should be cloud
Some workloads must remain on-premise due to regulatory compliance or tie to physical location
Private cloud-building technology will not deliver breadth, depth, innovation of service providers
IT orgs likely can’t update, innovate, reduce costs of internal clouds as quickly as providers
@cloudpundit© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
No One Tool to Rule Them All
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Bimodal, hybrid IT portfolio
Not hybrid infrastructure management
Best-of-breed native-oriented tools
Not commoditized resource management
Unified tooling only where it makes sense
Financial management, compliance, etc.
@cloudpundit© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
Build It Yourself? Make It Competitive!
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Has the necessary features –
Not just for IT Ops but devs/engineers/scientists
Cost-competitive – now and in 3 years
Serves a distinctive use case
Consider PaaS instead of IaaS
@cloudpundit© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
Establish a Cloud Center of Excellence
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Provide cross-functional leadership
Enterprise architect as leaders
Establish policies
Governance, security, use cases
Serve as a broker
Guide to best practice, manage vendors
CONFIDENTIAL AND PROPRIETARY
This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use of the intended Gartner audience or other intended recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected, and it may not be further copied, distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates. © 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
Lydia Leong
VP Distinguished Analyst
Cloud Computing
Twitter: @cloudpundit
Gartner Research
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