INDUSTRY NEWS: Weekly News Scan January 20, 2017

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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!


VentureBeat: Hewlett Packard Enterprise buys converged infrastructure startup SimpliVity for $650 million

Hewlett Packard Enterprise, which split off from HP in 2015, today announced its latest acquisition, SimpliVity, a company that sells data center hardware that unites computing power and storage, which traditionally have been sold separately. HPE paid $650 million in cash for SimpliVity, and the deal is expected to close in the second quarter of HPE’s 2017 fiscal year, which ends on June 30, according to a statement. SimpliVity had been in a position to go public, but competitor Nutanix did that first. “More and more customers are looking for solutions that bring them secure, highly resilient, on-premises infrastructure at cloud economics. That’s exactly where we’re focused,” HPE chief executive Meg Whitman is quoted as saying in the statement.


InformationWeek: Bain: Is Container Use Optional? Probably Not

Containers, frequently portrayed as an experimental or optional technology, are likely to be an essential ingredient in transitioning traditional companies to the emerging digital economy, concludes a study by Bain & Company. The Bain authors of For Traditional Enterprises, The Path To Digital And The Role Of Containers come to several surprising conclusions. It's understood that containers are useful in building next-generation applications based on microservices. Bain says they're also good for transitioning 20-year-old, monolithic applications. Traditional companies seeking to avoid being disrupted by competitors and move to a more service-oriented and agile position in their marketplaces will inevitably turn to containers, the authors also concluded.


WSJ: Cloud Growth Pinched by Tighter Budgets: Survey

Chief information officers expect to shift 21% of their company’s applications to a public cloud this year, and 46% by 2020, according to a report by Morgan Stanley. That’s up from 16% today, but down from earlier projections, the report said. The findings are based on a survey earlier this month of 100 CIOs at firms in the U.S. and Europe across a range of industries, with annual revenues of $500 million to more than $20 billion. The rate of cloud migration indicates a “slightly tempered pace of adoption” from previous forecasts, the report said. Part of the reason is a dampened outlook on IT spending plans. Though hardware and software spending is expected to remain roughly flat, overall IT spending is projected to grow 3.5% in 2017, down from a 4.1% forecast in October, the report said.


Business Insider: THE CLOUD COMPUTING REPORT: An introduction to cloud solutions and their use cases

Cloud computing — on-demand, internet-based computing services — has been successfully applied to many computing functions in recent years. From consumer-facing, web-based productivity apps like Google Docs to enterprise database management suites, the tools businesses rely on are increasingly moving to the cloud. But developing a cloud strategy is no easy task. Public cloud solutions will likely come to dominate the market over the next decade, but business constraints, such as security concerns and the limitations of existing infrastructure, make it difficult for companies to fully adopt the public cloud right now.


Forbes: The Cloud Vendors Want You To Embrace The Third Wave Of Computing - Are You Ready?

The IT industry is experiencing the third wave of computing. The first wave was driven by the PC and x86 server revolution where inexpensive, commodity hardware started replacing the large, monolithic mainframes. The second revolution was ushered in the form of virtualization in which the virtual machine became the unit of deployment and management. Cloud computing, both public and private, has its roots in virtualization.  VMs formed the core building block of Infrastructure as a Service, the most preferred delivery models of the cloud. Amazon EC2, Azure VMs, and Google Compute Engine are the most popular IaaS offerings that are based on VMs. The third wave of computing is evolving in the form of containers, which are getting ready to replace VMs as the fundamental units of computing.


WSJ: Oracle CEO Hurd Says 80% of Corporate Data Centers Gone by 2025

Oracle Corp. co-CEO Mark Hurd said Tuesday that the company expects 80% of corporate data centers to disappear by 2025 as the cloud becomes the primary way that information technology is deployed. As more and more applications move to the cloud, a tipping point will be crossed and the economic rationale for maintaining independent corporate data centers will be reassessed, he told an audience of customers. “This is an irresistible force. This is not ‘what if.’ This is the way things are going to go,” he said at Oracle’s CloudWorld conference. “For the short term, it will cause chaos in our industry, the one Oracle competes in … the change will not be linear, but exponential.”

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