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View Australian Insights on the Next Generation Hybrid Cloud Research Insights Next- generation hybrid cloud powers next- generation business The Australia point-of-view By Eric Schnatterly, Timothy Gunnell, Anthony Marshall, and Lynn Kesterson-Townes Talking points Chapter one: Clouds everywhere Core workloads Spending on public cloud services in Australia is expected Despite the growth of cloud over the to be USD 10 billion by 2022.1 Hybrid cloud will comprise nearly 50 percent of Australia’s managed cloud services past decade, for most organizations, only industry by 2022.2 20 percent of workloads have made their Low-hanging opportunities for public cloud have already way to the public cloud—and these are been exploited by most organizations. “Front-office” not yet companies’ core mission-critical applications, such as client inquiries (checking account workloads. The 80 percent that remains balances, for example), social media, and digital shopping carts, make up a large portion of what has is where real enterprise value lies. We are gone to public cloud. now at an inflection point. These initial opportunities have validated the benefits of Hybrid cloud the cloud architectures, including speed of deployment, dynamic resource acquisition, application elasticity, and Hybrid cloud permits public clouds, private service reuse across workloads. Because of cloud, clouds, and on-premises IT to interoperate organizations are thinking about innovation, speed, seamlessly. Standardized technology inter- deployment, new markets, and disruption in a new light. faces across these three enable businesses Executives report a range of successes with public cloud to innovate with scale and agility, improving initiatives, especially around their abilities to scale and responsiveness and constraining cost, grow (see Figure 1). despite growing complexity. At the same time, mission-critical, security-dependent applications, such as customer data bases, transaction Multi public cloud processing, finance and accounting, supply chain, and Enterprises have on average at least five manufacturing—have moved slowly—or not at all—to public cloud. This is especially true for highly regulated clouds—each with different management industries, such as banking and healthcare, where the processes and interfaces. What was highest proportion of processes are yet to move to the 3 supposed to simplify has, in many cases, cloud. In many cases, these workloads are better suited to private cloud—or a mixture of public, private, and increased complexity. What is needed traditional IT. is a single management approach to If the next phase of cloud benefits is to be realized, a new cloud—regardless of what cloud is used. approach is needed to address these workloads that have been left behind. Secure and assure Security is central to a successful cloud deployment. Hybrid cloud allows apps to run—and data to be stored—in the IT envi- ronment best aligned with specific security, regulatory, and governance requirements. 1 Hybrid cloud permits public and private clouds to operate seamlessly with on-premises IT across standard technology interfaces. Figure 1 Importance of strategic reasons for establishing multi-cloud environment Most successful cloud initiatives: global versus Australia 76% Expanded into new industries 84% 74% Improved customer experience 79% 65% Reduced time to market 71% 68% Reduced operational costs 69% 71% Expanded into product/services portfolio 69% 71% Created new revenue sources 68% 73% Increased existing revenue 64% 60% Provided access to external capabilities and resources 58% 69% Created and supported new business models 57% 58% Automated resources provisioning 56% 59% Facilitated proof of concept development 56% Global Australia Source: IBM Institute for Business Value hybrid cloud survey (2016). A new era of cloud computing Hybrid cloud allows workloads to be deployed to whichever is the best environment for that workload: Australian organizations expect extensive adoption – Public clouds are well suited for many front-office of cloud technologies in the next few years. More than workloads 60 percent of the Australian organizations surveyed plan to have all their data on cloud in the next 10 years. – Private clouds are well suited for many of the Ninety-two percent of Australian organizations surveyed mission-critical workloads where the benefits of cloud plan to use multiple hybrid clouds within three years.4 are desirable—but the security and assurance of a private environment are fundamentally important Hybrid cloud permits public clouds, private clouds, and – Traditional IT environments are suited for workloads on-premises IT to interoperate seamlessly across all that don’t inherently take advantage of cloud benefits— three standardized technology interfaces: Linux, Open and demand the dedication of computing resources. Container Initiative, and Kubernetes. These enable businesses to innovate with scale and agility, improving responsiveness and constraining cost, despite growing complexity. 2 Furthermore, as hybrid cloud becomes widespread, we Globally, are seeing variations of adoption across companies and industries. In the more regulated industries—such as banking, healthcare, telecom, and government itself (half 80%+ of the global economy)—the cloud mix will tilt more toward of enterprise workloads private cloud than public cloud. In the less regulated industries, the mix will tilt the other way (see Figure 2). have not yet moved to or In all cases, however, there remains a universal need to leveraged the cloud interoperate between public, private, and traditional IT. Hybrid cloud’s intrinsic interoperability and portability means organizations are not locked-in either to one environment or one individual public cloud vendor. They On can place their workloads in the best spots—and have average, interoperability among environments and different public enterprises use cloud providers. five clouds.5 Figure 2 Regulation is one factor driving infrastructure choices >80% Regulated industries of new applications will be developed 30% 40% 30% using containers Public Private Traditional/ on premises Unregulated industries 40% 30% 30% Public Private Traditional/ on premises Source: IBM Institute for Business Value hybrid cloud survey (2016). 3 WIN Corporation Pty Ltd.: Secure to the core 6 Hybrid cloud adoption Hybrid cloud can help address security and other barriers that determine the difference between successful and WIN Corporation Pty Ltd. is an Australian media unsuccessful cloud deployments. Our research indicates company that owns the WIN Television network, that security and governance are the two top reasons cited Crawford Productions, and several local radio as justification not to put core applications onto public stations. As a broadcaster, the company needs to clouds.7 With hybrid cloud, companies can run applications provide regular data updates to a host of internal and and store data in the specific environments best aligned external stakeholders. with security, regulatory, and governance requirements. For its enterprise-class extract, transform, and load Hybrid cloud also allows enterprises to manage their (ETL) tool, the company relies on a hybrid cloud cloud transition dynamically, selecting acceptable levels solution to simplify its data-management processes. of downtime and overcoming the constraints of legacy systems and siloes. As a result of using hybrid cloud, the time required for an ETL job was 5 minutes, down from 45 minutes, a decrease of 89 percent. Hybrid cloud also serves as a common platform for ETL development, streamlining maintenance and development, and as a single point of control for all ETL jobs. 4 Hybrid cloud’s data portability and interoperability can help companies realize the value of “write once, run anywhere.” Chapter two: Time for action Are you ready to make the most Next in cloud’s story, businesses unlock the door to a new layer of benefits, especially those relating to of hybrid cloud environments? “cloudification” of mission-critical applications. New levels of data portability and interoperability offered – To what extent do your people under- by hybrid cloud help companies realize the virtue of stand the implications and opportunities “write once, run anywhere.” Four key steps to get started include: of next-generation cloud on your business and your competitive environment? 1. Architect the destination. Think open, multi-cloud, hybrid cloud. Your organization will live with the decisions you make today for years. Think through – How is your organization, and your which of your workloads fit best in the public cloud, competition, taking advantage of hybrid private cloud, and traditional IT environments. Avoid both environment lock-in (to only one of the three) and cloud, particularly data and processes vendor lock-in, and reassess approaches that might that, until recently, have been difficult not survive as standards and technologies evolve. to move? 2. Sequence the journey. Avoid “ready, fire, aim” approaches. Lay out a careful, clear roadmap of what – What adjustments have you made in you want to do and in what order. You may experience hiring and training to have the right pressure to skip ahead without building a solid, open foundation. Resist it. people at the right time working on the right things in dynamic ecosystems 3. Mobilize the right skills and assets. Draw upon talent powered by hybrid cloud? within and outside your enterprise. It’s important to develop and maintain in-house skills, but working with trusted third-party services
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