HCTS Presents: The Voice of the Enterprise View on Digital Transformation: Digital Economics

In this final VotE View, Amy Hedrick, Research Associate for the Voice of the Enterprise practice, examines some of the key themes currently being observed by 451 Research and how these relate to topical sessions at the upcoming Hosting + Cloud Transformation Summit, being held September 19-21 in Las Vegas.

Through our Voice of the Enterprise research, we interview dozens of IT professionals each quarter, across a variety of technology sectors – storage, datacenter transformation, security, cloud computing, Internet of Things and converged infrastructure. The agenda for HCTS 2016 addresses concerns we’re hearing from our enterprise commentators, as they describe how digital opportunities are transforming their IT ecosystems and the challenges that lie ahead. Digital transformation is real. Here’s a sampling of what we’ve heard.

The New Digital Economics – Our commentators tell us that digital economics is a game changer. As-a-service offerings are enabling new workloads with little or no capital investment, helping budget efforts that favor opex. Meaningful cost comparisons between external and in-house solutions are problematic, but datacenters are scrambling to compete with public cloud vendors. And just migrating to a cloud doesn’t necessarily bring the full economic benefits from re-platforming; many applications must be re-imagined and rewritten to be optimized for cloud. Few organizations are fully equipped to broker even one cloud provider, let alone multi-cloud providers, even though the savings can be substantial.

¬∑         ‚ÄúA cloud can save you money ‚Äì the key word there is "can," not "will," because a lot of it has to do with how it's designed ‚Ķ how much different is it from your current way of doing business and infrastructure ‚Ķ All [the business units] really see is that, "Hey, a virtual instance in the cloud costs me almost nothing, and if I buy it from you, it costs me this." They don't understand; our infrastructure to some extent already includes those elements. And up in the cloud, to get those you've got to start asking extra for that stuff. And the costs are piling up.‚Äù (Government/Education)

¬∑         ‚ÄúI know how to do the math [to cost out an application] ‚Ķ but I can't do it ‚Äì or I don't have a tool that will do it for me ‚Äì for any workload. So, that's sort of the next generation where I'd like to be at, is I can, with minimal effort, cross-compare our own datacenter with running an AWS or Azure.‚Äù (Retail)

¬∑         ‚ÄúBecause there's this carte blanche allowance of building things in Amazon by the developers, they tend to view it as just a really quick, easy extension of infrastructure. And in my opinion, that's a dangerous way to view public common infrastructure or Amazon. You can't view it like it's just another datacenter and you can just spend ‚Äì because it gets very expensive very quickly.‚Äù (Other)

¬∑         ‚ÄúPutting something that's monolithic in the cloud may be a mandate for a short period of time, but you don't get the economies of scale, you don't get the usability, you don't get the positive user experience, you don't get to improve in the future, you don't get the efficiencies.‚Äù (Other)

Suggested HCTS sessions:

Multi-Cloud: Far from the Madding Crowd
Owen Rogers, Research Director, Digital Economics, 451 Research

What Infrastructure Looks Like in the Age of Cloud
Simon Robinson, Research Vice President, Voice of the Enterprise Infrastructure & Storage

Descriptions for all HCTS sessions can be found on our event website. Register now to take advantage of preferential rates and be a part of this year’s industry-defining event.
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