Hitachi Inspire Series Hitachi Data Systems Asia Pacific Top 5 Trends for 2014 WHITE PAPER DATA DRIVEN GLOBAL VISION CLOUD PLATFORM STRATEGIC CONV ION POWERFUL RELEVANT PERFORMANCE SOLUTION CLOUD UNIFIE VIRTUAL BIG DATA SOLUTION ROI FLEXIBLE CONSOLIDATE ACCELER Five key developments that will shape the information infrastructure landscape in Asia Pacific. According to the recent Economist Intelligence Unit (EIU) survey The hype and the hope: The road to Big Data adoption in Asia-Pacific, sponsored by Hitachi Data Systems, over 70 per cent of organizations believe big data adoption will improve their profitability, productivity, and innovation. It is thus crucial for organizations to implement the right technology and infrastructure solution now in order to succeed in an increasingly data-driven economy. These imperatives will drive the global adoption of technologies ranging from multi-petabyte file capacities to object stores and enterprise flash, according to Hu Yoshida, Vice President and Chief Technology Officer, Hitachi Data Systems. Other developments to watch for include the growing adoption of private clouds, the change of focus in technology refresh, and solutions such as enterprise synch and share and encryption to address security concerns, amongst others. The same dynamics and developments will also come into play in Asia Pacific, says Adrian De Luca, Chief Technology Officer, Asia Pacific, Hitachi Data Systems. In this paper, he examines how the wider technology trends will combine with business drivers in Asia Pacific to shape the IT landscape in this region over the coming year. 1. Big data analytics will go beyond proof-of-concept phase and into production in established markets. Enterprises will have to find ways to uncover value in their existing data stores and deploy scalable infrastructures to extract meaningful outcomes from big data projects. The adoption of big data analytics will continue to grow at an unprecedented pace in 2014, especially in highly competitive industries, such as banking and finance, telecommunication services, and retail. According to Forrester, China and India lead big data adoption in Asia Pacific, with 21 percent 1 of organizations in both countries reporting that they have implemented big data projects. In Australia and New Zealand, about one-third of organizations are either planning to implement or have already adopted big data systems and will be expanding their big data initiatives in the future. Meanwhile, Indonesia has the highest percentage (25 percent) of respondents who are planning to implement big data 2. Through the effective use of big data, banks can achieve business transformation by creating a customer-focused interaction, optimizing enterprise risks and increasing flexibility. Organizations in the telecommunication services sector can harness, big data can to deliver deeper insights into their operations and to build smarter networks. In the retail sector, which is experiencing 6 1 Big Data Lessons the East Can Take from Facebook, Wal-Mart and LinkedIn 2 Forrester Big Data Adoption Trends In Asia Pacific: 2013 To 2014, January 2013
percent growth in the brick-and-mortar world and 20 percent in its online counterpart, big data can help generate valuable insights for personalization and improving the effectiveness of marketing campaigns. application programming interface, and support for relational queries will help organizations to cast light on dark data by accessing and unlocking the hidden value in their existing silos of data stores. customizer. The role of cloud broker can be played not only by telcos, but increasingly also by global system integrators, local resellers, government agencies, and some large enterprise IT organizations. According to the EIU Big Data Survey sponsored by Hitachi Data Systems, over 70 percent of organizations believe big data adoption will improve their profitability, productivity, and innovation, but what sets big data leaders and laggards apart is access to skills and technology. There is thus a need for organizations to develop a big data strategy now which will help convert raw data into business intelligence for future growth. However, many organizations will find that their existing information systems hinder the effective gathering of data for analysis, as information is sitting in separate business systems and information silos, and in different formats and media. Object stores will enable organizations to extract greater insights from the data they already have. Object storage contains metadata that describes an organization s data and the policies that govern it. It is thus a key enabler for content-aware search across a variety of application data. As organizations seek to extract greater insights from the data they already have, housing historical data in object stores will make it easier to access and maintain the data. Features such as a built-in metadata search index, an object query Multi-petabyte file capacities, coupled with compute capabilities, will become the new norm for dealing with the big data explosion. With more data being collected with each transaction, enterprises will require scalable storage solutions that deliver not just the multi-petabyte capacity, but also the necessary compute power to perform analytics. Scale-out platforms, which are designed to meet big data requirements, will also have to be integrated with existing application infrastructures to ease management and reduce operational costs. 2. The cloud broker model will gain momentum, enabling organizations to transform their IT departments from technology implementers to business innovators. Global systems integrators and traditional IT infrastructure resellers will increasingly shift their value proposition to infrastructure transformation and business services, freeing organizations to innovate more. Enterprises with high-demand IT infrastructure and application services will start exploring the cloud broker model, preferring to work with providers who act as vendor-neutral third-party cloud services brokerages. According to Gartner, the concept of a cloud broker covers a number of roles such as aggregator, integrator and According to a recent IDC forecast, cloud services brokerage presents a US$18.5 billion opportunity in Asia Pacific 3, and will become the preeminent platform for cloud-based services engagement globally within the next 5 years. For the cloud brokers to position themselves in this space, service providers will shift their focus from technology delivery to business systems and workflow delivery. They will aggregate and, in some cases, even integrate cloud services to deliver a comprehensive suite of business applications to customers. This will, in turn, transform the role of the Chief Information Officer and the IT department of an organization, as they move from technology/vendor selection and implementation to business innovation and enablement of these services. Technology refresh will focus on applications and business outcomes rather than infrastructure. Business outcomes will be the key driver of technology-refresh efforts, and enterprises will turn to their system integrator, internal IT organization, or a third-party service provider to play the role of cloud broker who will aggregate and integrate services to deliver these outcomes. 3 IDC, Cloud Services Brokerage: A US$18.5B Opportunity to Asia/Pacific, October 2013 2
Virtualization and automation will transform IT operations, redefining roles and responsibilities and changing the IT skills profile within the organization. Within the organization, the traditional roles of storage, network, or server administrator are being transformed or eliminated altogether. Virtualization and automation will pave the way for an IT environment that is easier to manage, without the need to have specialist IT skills in-house. This frees up the internal IT organization to focus on business applications. For some, the role of implementing and managing infrastructure may even be taken over by cloud brokers who will aggregate remote services to offload most of the grunt work. 3. Concerns over data security will reach a tipping point, not only for mobile data that moves between devices and the cloud, but also data in content repositories. Organizations will re-examine their privacy and security policies and look to solutions to address them, such as enterprise file synch-and-share, data encryption, and auditability. With greater enterprise mobility and the growing Bring Your Own Device (BYOD) phenomenon, organizations will increase their emphasis on mobile and edge security, especially on securing data that moves between mobile devices and the cloud. IDC predicts that by 2015, the global cloud and mobile security market will grow to US$6 billion 4. Mobile security will grow to make up a third of this market as enterprises seek to protect their systems from malware that not only compromises mobile devices but can also use them as a conduit into the enterprise network. The imperative to secure information will go beyond securing data in flight (over public and private networks) to also cover the security of data at rest in the vast repositories of digital information held by commercial entities. Across Asia Pacific, new legislation is being introduced to protect personal data. Examples include the Australian Government s Privacy Act 5 and Singapore s Personal Data Protection Act 6, which call for more stringent checks on the collection, disclosure, and integrity of personal information, and impose hefty fines for non-compliance. The Indian Government is also proposing new laws to strengthen the protection of citizen information with its Cyber Security Policy 7. Organizations will therefore need to implement stricter security and data management practices that protect the personal information of individuals. The cost of compliance could be very high if modern technologies are not leveraged to help manage and automate these processes. Organizations will adopt enterprise synch-and-share solutions for shadow IT. Shadow IT is software and hardware that is not supported by the central IT organization and, as such, can expose the business to security risks. Rather than allowing employees to store potentially sensitive information in public cloud services such as Dropbox, organizations will adopt enterprise synch-and-share solutions, such as Hitachi Content Platform Anywhere, which will deliver the same convenience but with much greater security and control. Encryption of data at rest will become a basic necessity. Encryption will become a necessity to ensure security-in-depth for personal data, and to meet increasing governmental privacy legislation and industry regulatory requirements in sectors such as finance, healthcare, and social services. Having this capability built directly into the different layers of the information infrastructure can help ensure the privacy of all file, block, and object data. New hardware-encryption technologies are coming together to automate the processes involved and to simplify security management. This will allow flash and disks to be encrypted with no impact on performance and no additional power or cooling requirements. Storage platforms such as the Hitachi Virtual Storage Platform, Hitachi Unified Storage VM, and Hitachi Unified Storage 150 also support the ability for storage arrays to securely create, manage, and escrow their own encryption keys, and enable external key management with support for the Key Management Interoperability Protocol. 4. The Asia Pacific region will witness an explosion of unstructured data from mobile communications. Telecom operators will need to deploy sophisticated data management solutions to address content delivery 4 IDC predicts $6bn market for cloud and mobile security by 2015 5 Australian Government Office of the Australian Information Commissioner, Privacy Law Reform March 2014 6 Singapore Government Personal Data Protection Act 2012 7 Indian Government Ministry of Communications and Information Technology National Cyber Security Policy (NCSP-2013) July 2013 3
and data analysis needs in order to gain a competitive advantage in the long term. Asia Pacific will experience rapid development of high-speed mobile network infrastructures that will continue to drive the rapid adoption of smartphones. According to ABI Research, 63 percent of mobile telcos across Asia had rolled out 4G LTE services, were conducting trials, or had firm plans last year to deliver 4G LTE services 8. Ericsson has also forecast that LTE population coverage in Asia Pacific will increase to 60 percent by 2017 9, surpassing the global average of 50 percent for the same year. With 4G technology supporting a theoretical upload limit of 50 Mbps, this will have tremendous implications for the growth of mobile data in the region. Asia Pacific is expected to increase its share of the global mobile-data volume from around one third today to almost 40 percent in 2018. As consumers adopt digital services in their everyday lives, telecommunication and service providers will need to plan for more bandwidth-hungry offerings, such as live video, music streaming, and live video chats, just to name a few. To manage the growing volume of digital content services to consumers while ensuring consistent service quality, telcos will need to develop a scalable, high-performance and reliable IT infrastructure architecture that incorporates flash-based storage and intelligent content delivery networks to meet the high bandwidth requirements of streaming rich media. There will be an exponential increase in enterprise flash adoption across the telco value chain. With enterprise-grade flash delivering a quantum improvement in performance compared with traditional storage options and greater longevity over commodity Solid-State Disk (SSD), the technology will provide a boost for the delivery of content over mobile networks. For example, only 8 Hitachi Accelerated Flash modules are required to achieve 500,000 IOPS, whereas 80 SSDs will be required to achieve the same level of performance, and Hard Disk Drives (HDD) will not be able to do it at all. The performance capabilities of enterprise flash will also allow it to support the storage and computation demands of real-time analytics and predictive modelling, enabling telcos to anticipate and avoid network issues while maintaining mobile quality of service. 5. Competition between different countries and regions to become the digital hub of Asia will enter a critical stage in 2014. Service providers will invest in state-of-the-art facilities and advanced infrastructures to differentiate their services, and end-user organizations will invest in transforming their business systems. The data centre industry in the region will continue to grow as countries and regions compete to become the digital hub of Asia. In a study of Asia Pacific data centre trends by Digital Realty Trust, over 83 percent of respondents indicated that they planned to expand their data centres in 2013 or 2014. The findings were based on a detailed survey of senior decision-makers at large corporations in Singapore, Australia, Hong Kong, and Japan. According to IDC, virtual private cloud deployments of Infrastructure-as-a-Service will grow at 29 percent compound annual growth rate in Asia Pacific until 2016 10, indicating that converged solutions have reached an investment point with the maturing of application support and the cost savings that they offer. Many organizations will use this as an opportunity to transform their legacy IT to new consumption-based IT models. As a first step, many will start with the deployment of on-premise private clouds to host traditional enterprise workloads, such as email, databases, file servers, and backup and recovery. Other organizations that are more advanced in their cloud journey will begin to move their enterprise applications off-premise to cloud service providers together with on-premise converged platforms to consolidate specialized business applications. This hybrid approach will help reduce costs as well introduce greater business agility. Technology refresh will focus on applications and business outcomes rather than the infrastructure. Organizations will shift their IT focus from building and maintaining systems to delivering outcomes that will benefit the business. With this, responsibility for managing complexity will shift from 8 ABI Research (https://www.abiresearch.com/press/63-of-asias-carriers-have-lte-rolled-out-are-condu) 9 Ericsson Mobility Report, November 2012 10 IDC Asia/Pacific (Excluding Japan) 2012 2016 Cloud Services Market Analysis and Forecast, September 2012 4
the internal IT organization to the vendor or service provider. Converged solutions will be preferred for selected applications. According to IDC 11, IT organizations traditionally spend about 23.3 percent of staff time and resources on pre-system deployment tasks, such as purchasing, integrating, coding, and testing. Converged or pre-validated solutions will present more compelling options as these can reduce planning and deployment time as well as management costs, and are easier to support than the build-your-own approach. More organizations will adopt the private cloud for provisioning and self-service in a secure cloud environment. Concerns about security and privacy in the public cloud, coupled with worries about the viability of public cloud vendors, have combined to create greater interest in private clouds to address these issues. With a private cloud, organizations virtualize their compute, network, and storage resources; unify the management and consumption of infrastructure; and automate the entire stack to reduce the overhead associated with managing disparate platforms. Archives, clones, and snaps will enable the organization to reduce backup while enabling data protection and disaster recovery. The storage explosion is being magnified by the creation of multiple copies of data for data protection and disaster recovery purposes. In 2012, 60 percent of storage capacity was consumed by copies. By the end of 2013, the total cost of managing replicas will surpass that of production data 12. To address this, organizations will deploy archival solutions to move data that does not change out of active storage, use cloning to create copies for instant recovery, and have thin-image snapshots to provide point-in-time protection. Software will also be needed to manage the lifecycles of these snapshots, clones, archives, and backup. 11 Converging the Datacenter Infrastructure: Why, How, So What? 12 Laura Dubois et al. IDC March 2013 (http://www.idc.com/getdoc.jsp?containerid=239875#.uukwq45igmv) Adrian De Luca Chief Technology Officer Asia Pacific Hitachi Data Systems Adrian De Luca brings over 20 years of experience in information technology to Hitachi Data Systems. In his role as Chief Technology Officer for the region, he works closely with Hitachi customers and partners to develop innovative technology opportunities for the Asia Pacific market. As a member of the Global Office of Technology and Planning, he helps develop strategies and R&D opportunities to drive the continued delivery of innovative solutions. Adrian works actively with industry bodies such as the Storage Networking Industry Association (SNIA) and is an advisor on the National Standing Committee for Cloud Computing (NSCCC) for the Australian Government. He is also a popular keynote speaker at major industry events across the Asia Pacific, and has written a number of business discussion papers. He is also the co-author of Storage Virtualization for Dummies. Visit Adrian s blog here. 5
Hu Yoshida s Top 10 IT trends for 2014. Hu Yoshida publishes his forecasts and insights on key trends at the beginning of every year. His annual predictions have earned widespread respect in the industry. For details, please visit: http://blogs.hds.com/hu/. His predictions for 2014: 1) Technology refresh will focus on applications 2) Converged solutions will be preferred for selected applications 3) More organizations will adopt the private cloud 4) The big data explosion will drive multi-petabyte file capacities 5) Organizations will adopt enterprise synch and share solutions for shadow IT 6) Object stores will enable organizations to extract greater insights from dark data 7) Archives, clones, and snaps will enable the organization to reduce backup 8) The adoption of enterprise flash will accelerate 9) Encryption of data at rest will be table stakes 10) IT operation s skills, roles and responsibilities will change Hubert Yoshida Vice President and Chief Technology Officer Hitachi Data Systems Hu Yoshida is well connected and well known within the IT industry. He is sought-after keynote speaker and is widely followed on Twitter (@HuYoshida). His blog was recently ranked among the top 10 most influential within the storage industry by Network World. To stay current with IT issues and trends, Yoshida travels extensively to meet in-person with customers and partners. As a renowned thought-leader, Yoshida authored several papers on storage area networks, Fibre Channel, multiprotocol SANs and storage virtualization technologies. He has served on the advisory boards of several technology companies and is currently chair of the Scientific Advisory Board for the Data Storage Institute of the government of Singapore. Yoshida publishes his forecasts and insights on key trends at the beginning of every year. His annual predictions have earned widespread respect in the industry. Corporate Headquarters 2845 Lafayette Street Santa Clara, California 95050-2639 USA www.hds.com Regional Contact Information Americas: +1 408 970 1000 or info@hds.com Europe, Middle East and Africa: +44 (0) 1753 618000 or info.emea@hds.com Asia Pacific: +852 3189 7900 or hds.marketing.apac@hds.com Hitachi is a registered trademark of Hitachi, Ltd., in the United States and other countries. Hitachi Data Systems is a registered trademark and service mark of Hitachi, Ltd., in the United States and other countries. All other trademarks, service marks and company names are properties of their respective owners. Notice: This document is for informational purposes only, and does not set forth any warranty, expressed or implied, concerning any equipment or service offered or to be offered by Hitachi Data Systems Corporation. Hitachi Data Systems Corporation 2013. All Rights Reserved. 6