Leveraging Specialized Hardware and Expertise in a Mid-Market Cloud
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1 Leveraging Specialized Hardware and Expertise in a Mid-Market Cloud September 2014 Karyn Price Industry Analyst Cloud Computing
2 Leveraging Specialized Hardware and Expertise in a Mid-Market Cloud INTRODUCTION 1 The hyper-competitive global business environment demands high productivity, fast pace, and flexibility to generate results. Technology assists toward such goals, making speed, agility, and flexibility the primary hallmarks of modern IT. As business needs rapidly change, IT must be prepared to deploy new applications and services far more quickly than ever before. Doing so enables IT to impact the business s bottom line and help it reach its goals more quickly. So the question becomes: what technologies exist that allow IT to be as fast and agile as the business requires? For many mid-market businesses, cloud computing has become a primary model for delivering applications and new services quickly. The savviest businesses are deploying infrastructure that is configured specifically to meet the high-traffic, dynamic cloud environment. Cloud-optimized hardware provides a firm foundation for midmarket cloud initiatives today, while still being flexible enough to support future technology deployments. Most IT departments today recognize the benefits of implementing a cloud-based IT environment. They would like to leverage cloud within their businesses without losing the benefits of their existing, fully functional, private IT environment whether on-premises or hosted. But many mid-market businesses don t have adequate in-house expertise to support a cloud deployment that links cloud services with their existing infrastructure a deployment called a hybrid cloud. Turning to a managed service provider (MSP) for assistance can increase the mid-market business s chance of success when embarking on cloud initiatives. MSPs and similar providers bring both expertise and wrap-around, value-added services that can enhance the value of a hybrid cloud deployment. In this brief, Frost & Sullivan discusses the mid-market s need for hybrid cloud solutions, and how the right infrastructure can better support such configurations today and in the future. We will also show the value that the right MSP can offer mid-market businesses. LEVERAGING A HYBRID CLOUD IN THE MID-MARKET SEGMENT Mid-market businesses are in a unique position. Despite their size, many typically compete with larger counterparts that have more resources at their disposal to help gain a competitive edge. Mid-markets, as a result, must operate in a very lean manner, and often look for ways to gain big business functionality without big business resources. Cloud computing, particularly a hybrid cloud, combines private hosted or on-premises resources with cloud or virtualized components, and can scale up or down as a business grows or changes. Hybrid clouds can also be managed through a central platform, which allows for easy administration as businesses seek to integrate cloud computing into their operations. Hybrid cloud configurations allow companies to tailor the environment to each workload deployed. Since a streaming media application would have higher performance, bandwidth, and storage requirements than a Web server, for example, tailoring an IT environment to the highest use makes the environment more costly to implement. A hybrid cloud configuration allows businesses to place applications or workloads in the cloud best suited to them. This allows the business to optimize its IT investment. Among mid-market businesses that have adopted cloud services, 45% are already using hybrid cloud. The configurations vary, as illustrated in the figure below. 1 This executive brief was sponsored by DSS. Please note that the insights and opinions expressed in this assessment are those of Frost & Sullivan and have been developed through the Frost & Sullivan research and analysis process. These expressed insights and opinions do not necessarily reflect the views of the company executives interviewed. 2
3 Frost & Sullivan Hybrid Cloud Configurations Used by U.S.-Based Mid-Market Businesses, 2014 Mid Market Companies are Deploying Hybrid Clouds in Various Configurations Links hosted public and private cloud services Links hosted cloud with on prem private cloud Links hosted cloud with traditional hosted services (managed hosting, co lo) Links hosted cloud with non virtualized data center configurations Links different vendors' cloud services Connects all of the above 95% 88% 83% 81% 71% 81% 0% 20% 40% 60% 80% 100% The draw of a hybrid cloud for mid-market business is clear. Take ecommerce as an example. A business may have a public-facing Web site that is hosted in the public cloud. But sensitive customer data, like credit or personal demographic information, may be protected in a private, on-premises environment. The two must be able to interact, and the public cloud sales site must be able to scale quickly, should sales spike during a particular season or event. Mid-market businesses also find the cloud especially useful for backup and recovery. Businesses are choosing to replicate their private, on-premises data and applications to a cloud-based environment to take advantage of the scalability and low-cost capacity. As the volume of critical data grows, so does the need for flexible, on-demand storage space in the cloud. Optimized Hardware in the Mid-Market Cloud Source: Frost & Sullivan 2014 Cloud User Survey Using the right hardware can help optimize the mid-market cloud, particularly when a hybrid configuration is the end goal. Some providers, like IBM, offer hardware that is specifically optimized to work well when cloud software is deployed on it. Converged infrastructure provides pre-configured bundles of hardware and software in a single chassis. The goal of a converged infrastructure is to optimize performance, eliminate compatibility issues and simplify the management of servers, storage systems and network. IBM offers such pre-configured systems within its FlexSystem, PureSystem, and PowerSystem portfolios. Infrastructure systems like these from IBM are configured specifically to handle the dynamic, rapidly changing nature of cloud computing, which requires high-performance computing and the ability to rapidly increase or decrease compute, network, and storage capacity as customers needs dictate. In addition to providing a strong foundation for hybrid cloud computing, such infrastructure systems are also engineered to support newer technologies, and provide mid-market businesses with a roadmap for future technology deployment. Modern 3
4 Leveraging Specialized Hardware and Expertise in a Mid-Market Cloud virtualization and cloud, as well as software-defined data centers, can all be supported by these cloud-optimized infrastructures. While infrastructure hardware is important to consider when deploying a cloud-based IT environment, expertise and experience to correctly and efficiently design and deploy such an environment is key as well. THE ROLE OF MANAGED SERVICE PROVIDERS IN AN EVOLVING CLOUD MARKET Many mid-market companies struggle to gain the right mix of expertise and resources for cloud programs. Despite the perceived benefits of the cloud on their business, 54% of mid-markets cite a lack of in-house expertise as a restraint to deploying a cloud solution, according to a recent Frost & Sullivan survey of IT decisionmakers. Ninety-six percent (96%) of mid-market businesses will turn to an outside expert for assistance in implementing their cloud strategy. Of these, nearly 60% will engage a managed services provider or cloud provider that offers managed or professional services. MSPs can bridge a significant gap in cloud computing expertise for the mid-sized cloud market. MSPs often act not only as a service provider, but also as a comprehensive IT consultant. The right MSP can help mid-sized businesses make sense of the cloud options available, assist with cloud design and deployment, and provide ongoing lifecycle management and service integration. Another key benefit of engaging an MSP is the high-touch, consultative approach that they can provide in the cloud, which is traditionally a self-service environment. For mid-market businesses whose IT resources are stretched thin, engaging the services of an MSP can provide the right level of knowledge and expertise, at a price point that makes the most sense for the business. Additionally, the MSP can assist in optimizing the business s current data center environment or private, on-premises clouds before they recommend a move to a public cloud environment. Finally, some MSPs can guarantee service-level agreements (SLAs) through managed cloud offers. For mid-market businesses, retaining the services of an MSP can provide benefits that are not easily achievable when mid-sized companies go it alone in the journey to cloud computing particularly a hybrid cloud that integrates with existing components. But how can mid-market IT decision-makers determine the best MSP to suit their needs? CHOOSING THE RIGHT PROVIDER: THE DSS VALUE PROPOSITION Choosing the right consultant or MSP to meet the business s needs can be a daunting proposition that can make a big impact. Businesses that look for MSPs to assist with cloud initiatives typically focus on four specific areas: Design and Deployment MSPs should help a business audit its current data center environment, and determine whether adopting cloud infrastructure for some workloads is beneficial, as well as how to go about it. DSS whose design and implementation services include environment design, from servers and storage to end user devices and services is well-positioned to help a business evaluate its cloud options, and make the best decisions to meet corporate goals. Infrastructure MSPs may host cloud applications on their own infrastructure in proprietary data centers. This allows them to manage, and sometimes guarantee, application and service performance, as well as to help customers scale quickly and easily. In the case of DSS, the company relies on IBM 4
5 Frost & Sullivan components to run its own data center, and the company also resells the same infrastructure to its customers. As an IBM Premier Business Partner, DSS offers significant expertise in how to best leverage infrastructure in a complete IT environment. Lifecycle Services MSPs like DSS can also assist with keeping track of infrastructure components, and managing lifecycle issues such as patching and upgrades, as well as determining when elements should be retired in favor of newer equipment. Managed Services At the core of many MSPs offerings are managed services, or services that the provider manages on behalf of the customer, handling routine administration and maintenance. Some MSPs not only manage core cloud infrastructure, but also offer value-added, wrap-around services such as help desk, on-site support, systems administration, and IT staff augmentation. Consultants with a broad array of value-added services, like DSS, minimize IT complexity and risk for the client. Ultimately, MSPs offering the greatest value to their customers work hand-in-glove with each customer, providing tailored guidance and flexible solutions that meet their unique business needs. DSS offers solutions and services based on the goals of each of their client companies, helping to deliver IT value by managing IT complexity, mitigating corporate risk, and optimizing customers cloud investments. THE LAST WORD Cloud computing can be a murky place to wade into, particularly for mid-sized businesses whose IT resources time, manpower, and monetary are often limited. But the cloud can offer the opportunity to access enterprisegrade services at mid-market prices. The questions are: when and how should mid-market businesses enter the cloud, and how can they do so without limiting the benefits of their existing IT investments? For many, the answer lies in a hybrid cloud environment that leverages the best of an existing on-premises infrastructure, and utilizes the cloud strategically for workloads that will operate well in the cloud. The two environments are engineered to work together, managed through a single orchestration platform. Private, onpremises clouds are best deployed on optimized hardware designed to handle the needs of a private cloud. Cloud -optimized hardware, such as converged infrastructure systems offered by IBM, provides a strong foundation for today s cloud computing, as well as a path to future virtualized technologies. Deploying such infrastructure components in the best way to support a cloud environment can be confusing. Therefore, mid-market companies would do well to seek outside assistance when considering, designing, and deploying cloud solutions. This is especially true in the hybrid cloud, where connecting traditional components with cloud-based ones can be challenging for even the most experienced IT team. Engaging the services of the right MSP can provide businesses with enterprise-grade infrastructure coupled with the expertise, value-added services, and even staff augmentation necessary to compete with larger counterparts. By combining the robust infrastructures of IBM with the expertise and partnership of an MSP like DSS, the path to a hybrid cloud solution becomes clear. Karyn Price Industry Analyst Cloud Computing Frost & Sullivan karyn.price@frost.com 5
6 Silicon Valley 331 E. Evelyn Ave., Suite 100 Mountain View, CA Tel Fax San Antonio 7550 West Interstate 10, Suite 400 San Antonio, Texas Tel Fax London 4, Grosvenor Gardens, London SWIW ODH,UK Tel 44(0) Fax 44(0) GoFrost ABOUT FROST & SULLIVAN Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today s market participants. For more than 50 years, we have been developing growth strategies for the Global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies? Contact Us: Start the Discussion For information regarding permission, write: Frost & Sullivan 331 E. Evelyn Ave. Suite 100 Mountain View, CA Auckland Dubai Moscow Silicon Valley Bahrain Frankfurt Mumbai Singapore Bangkok Iskander Malaysia/Johor Bahru Oxford Sophia Antipolis Beijing Istanbul Paris Sydney Bengaluru Jakarta Rockville Centre Taipei Buenos Aires Kolkata San Antonio Tel Aviv Cape Town Kuala Lumpur São Paulo Tokyo Chennai London Sarasota Toronto Colombo Manhattan Seoul Warsaw Delhi / NCR Miami Shanghai Washington, DC Detroit Milan Shenzhen
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