This is a weekly browsing of recent relevant industry news articles, helpful for educating ourselves as well as for sharing with our peers. Please post any thoughts in the comments section!
The shift to cloud computing is about to begin a significant acceleration, with the biggest gains coming from large enterprises that have until now been slower to change, research from management consulting group McKinsey & Co. shows. “In the next three years, enterprises will make a fundamental shift from building IT to consuming IT,” a new report from McKinsey’s Silicon Valley group has found. The survey determined that 77% of companies in 2015 used traditionally built IT infrastructure as the primary environment for at least one workload, and that the percentage of such deployments will drop to 43% in 2018. While only about 25% of companies in 2015 used public infrastructure as a service as the primary environment for at least one workload, that percentage is expected to rise to 37% in 2018.
Oracle has bet its future on cloud computing, not that it had a choice. Companies don't want to buy their own servers, storage, and software anymore and install all of it in their own data centers. They want to rent all that stuff from vendors on a subscription basis and let the vendors maintain everything. Amazon is far and away the leader in cloud computing and it's been coming after Oracle's customers with a vengeance.
Huawei Technologies Co. is already one of the world’s top three makers of telecom-networking gear and smartphones by market share. Now, the Chinese technology giant is taking aim at the market for cloud computing largely dominated by Western heavyweights. Huawei is taking on Hewlett Packard Enterprise Co., Dell Inc. and Cisco Systems Inc. in the supply of servers and other equipment used in data centers, the key components of cloud computing, by adopting the strategy it has used to expand in its smartphone and telecommunications-equipment sales over the years: competitive pricing and hefty investment in research and development.
Dell used to be defined by PCs. Now, it wants to redefine itself in emerging technologies such as cloud computing, the Internet of Things, cybersecurity and predictive analytics. Such is the broad ambition of the new Dell Technologies — the $60 billion merger of Dell and EMC (which includes cloud company VMware) — that closed Wednesday. The coupling, announced in October, is nothing less than a reinvention of the 32-year-old Texas company.
CIOs are now so committed to on-demand IT that many are not just ditching in-house provision but are skipping hybrid infrastructures altogether and shifting key systems straight to the public cloud. Recently released figures suggest more than half (51 per cent) of IT leaders believe data security is better in the cloud than in their own data centres, and 58 per cent say the public cloud is the most secure, flexible and cost-effective solution to business challenges. Take Travis Perkins CIO Neil Pearce, who says his firm is strongly committed to the cloud. "We're going to get rid of the legacy systems that are holding the business back," he says. "The aim is that everything will be in the cloud eventually. The board is very serious about transformation - the level of investment is already increasing swiftly."