If the cloud is growing a bazillion percent each year why haven’t more enterprise apps migrated?
That’s the problem with some of these cloud growth stats.
“Gartner forecasts public cloud revenues will grow 155% from $214.3B in 2019 to $331.2B in 2022.”
Cool story bro, but so what?
When we don’t know the breakdown it’s hard to know if 99% of that is SaaS & Storage/Backups.
Overall revenue growth sounds great for cloud providers, but what does it mean for IT?
Random person: “Netflix and tech startups run in the cloud.” Aaaaaand…?
How does that help you make any decision about an enterprise application?
From what I can tell so far the top two services enterprise IT is migrating to cloud are hosted email and backups. We’re still a long way off from the majority of production systems being migrated.
We’ve landed on hybrid/multi-cloud infrastructure for the foreseeable future.
Even Amazon and Microsoft realized they aren’t going to force everyone directly to public cloud and introduced their on-prem options AWS Outposts and Azure Stack.
This proves that on-prem is here to stay. I wonder how that factors into the $230B forecast for public cloud revenue.
The truth is public cloud is only 24% of resources at companies with >5,000 employees.
Even though it’s growing fast, enterprises look like they’re settling into a hybrid strategy for the next 5-10 years.
The challenges facing IT right now (as with most tech cycles) is hype.
The executive team has been sold the dream and has mandated a cloud-first strategy.
Now queue the big project for IT pros to vet new resource destinations, migration plan, new management tools and training.
But that’s ok, you weren’t busy with anything else right?
The shift toward direct cloud consumption
IT infrastructure has been disrupted.
Just like Uber shook up the taxi industry and AirBnB the travel industry.
Amazon started the cloud revolution because they thought they could do it better than enterprises could themselves. The market has spoken and the shift toward cloud is inevitable.
Now users have a choice and many are choosing to go direct to the cloud instead of through IT.
Now it’s up to you. IT needs to choose how it wants to play in both of these scenarios.
Cloud Governance: Protecting the business without slowing it down
Allow users to move as fast as possible while still monitoring & supporting. Skilled teams are going to access the cloud directly. They need access to bleeding edge tools as they are released and are coding directly to APIs. The business just needs you to keep an eye out for cost savings opportunities and security risks.
Cloud Management: IaaS/PaaS provisioning
If you have non-power users or heavy regulations in your industry it might just be safer for IT to manage all controls around provisioning. You can still give a self-service portal or API for engineers to provision however IT has setup guardrails for costs and placement (what can be provisioned where).
Each enterprise is going to vary based on regulatory or other business factors but in general you have a couple options.
IT tools are evolving for a multi-cloud world
IT support for direct cloud consumers
For those going direct to public cloud there is no stepping in the way. IT can still provide massive value around:
|Cost Optimization||Organization of Resources||Security Oversight|
Most departments don’t have the years of experience buying and maintaining infrastructure.
You can use cost reporting tools and your understanding of the infrastructure to identify major cost savings
Nobody likes paperwork but taking the extra minute to properly tag resources means understanding all environments better.
You can enforce required tagging of cloud resources to ensure you track and know what every resource is for.
Technical users always want to move fast but security breaches and regulatory fines are very real risks.
You need to make sure only authorized users have access and systems are complying with security best practices.
Embotics has helped companies like yours save $1M for every $10M of cloud spend.
For situations where you are providing IaaS/PaaS to the business now is not the time to rest. Remember that every department has the option to go direct but there is a way to keep everyone happily consuming resources through you as long as you can:
|10x Provisioning Times||Decentralize decisions||Keep your costs in line|
We all know that the cloud isn’t actually cheaper. You’re paying for convenience and that always comes at a premium.
Users went to cloud for convenience and perceived reliability/performance improvements.
If have same-day turn around times for provisioning users would much rather have you do the work than figure out AWS/Azure consoles.
Setting up tools/portals where users can self-provision gives them the power to get what they want when they need it.
They don’t need to know that you’ve set guardrails that hide 80% of available instance sizes. As long as they can get something fast they are happy.
I said users don’t care as much about cost but finance sure does.
Cost dashboards and reports are key to investigating cloud costs and breaking down IT costs by department can help you deliver some solid value back to the business.
Embotics has helped IT groups like yours reduce provisioning times from weeks to minutes
Tips for IT in a multi-cloud world
IT Governance of Public Cloud
- Partner with departments/users to identify cost savings opportunities (E.g. Embotics multi-cloud cost reporting & right sizing automation)
- Try to wrestle for control of these systems. If there is a C-level mandate that IT owns the infrastructure great, otherwise don’t step in the way of innovation, support it
IT enforcing best practices
- Monitor and automate enforcement of policies like mandatory tagging
- Give users time to react by setting expiry and sending notifications
- Take unexpected action against user environment
- Hard shutdown resources without being certain they will not impact other systems
IT providing self-service
- Allow users to self-provision or easily request provisioning of specific resources
- Show user only a curated list with cost and placement recommendations
- Show user every option under the sun
- Allow users to request resources that don’t make sense (e.g. Oracle DB on a non-licensed instance)
A more balanced cloud strategy
The cloud is the future but how many clouds and for what applications we don’t know yet.
Throughout this shift IT will be on the hook for maintaining certain things the way things are and building a strategy towards a shifting cloud destination.
You need to make sure you:
- Be quick to partner with direct adoption of the cloud before those groups setup their own governance
- Up your game when it comes to providing IaaS/PaaS to the business
If you can figure that out you’ll be in a pretty good position
Hey! At least we can’t say our jobs are boring.