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Webinar July 20th: The Economics of Serverless Computing

Serverless is more than just hype; it has the potential to revolutionize the way we develop, build and operate applications in the cloud. Understanding the economics of serverless technology is vital to understanding its role in the world and its longer-term potential to disrupt the industry. In this webinar, Owen Rogers, Research Director for Digital Economics at 451 Research, will review these economics, pit the TCO of serverless against traditional virtual machines and containers, and compare pricing across the big four providers, namely AWS, Google, IBM and Microsoft.

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OpenStack revenues to grow at a 35% CAGR and exceed $5bn by 2020

Private cloud revenue will overtake public cloud revenue by 2019 for service providers

Ahead of the OpenStack Summit in Barcelona, 451 Research has published its latest findings about OpenStack. In the most rigorous analysis of its kind, 451 Research’s Market Monitor service expects revenue from OpenStack business models to exceed $5bn by 2020 and grow at a 35% CAGR.

To date, OpenStack-based revenue has been overwhelmingly from service providers offering multi-tenant IaaS, but the latest research indicates that private cloud revenue will exceed public cloud by 2019. Moreover, while OpenStack’s growth rate is high, overall revenue is still relatively small compared with market leaders such as VMware and AWS.
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451 Research Finds OpenStack and Commercial Private Clouds Can Beat Public Cloud on Cost – But Only at Scale

In the latest Cloud Price Index, 451 Research analyzes the costs associated with using various cloud options to determine when it becomes better value to use a self-managed private cloud instead of public or managed cloud services. Now, for the first time, cloud buyers and vendors have transparency into a complex pricing model that takes into consideration the major factors impacting total cost of ownership (TCO), including salaries and workload requirements.

451 Research finds that because of the prevalence of suitably qualified administrators, commercial private cloud offerings such as VMware and Microsoft currently offer a lower TCO when labor efficiency is below 400 virtual machines managed per engineer. But where labor efficiency is greater than this, OpenStack becomes more financially attractive. In fact, past this tipping point, all private cloud options are cheaper than both public cloud and managed private cloud options.
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Too Many Imperatives, Too Little Time

By Bob Winter

As Managing Director for part of 451’s Advisory team, I work with clients across all of the 451 channels. My team in particular is charged with helping marketers answer the most vexing questions their customers are asking them, using a combination of custom research and analyst insights.

Usually about mid-year, it becomes clear to me that there are three or four questions that thread through the dozens of engagements we do every year.

This year those questions, of course, can all be tracked back to “The Cloud”.

Specifically, it has become clear that the cloud is entering the “Early Majority” market, where mainstream, conservative businesses are embracing the move to a hybrid cloud model of digital architecture.

Some of the questions this raises are:
-How do we determine what workloads to move to the cloud?
-How do I adjust my development model to adapt to this transition?
-How do I deploy in this blurred environment where Infrastructure as a Service (IaaS), Platform as a Service(PaaS) and Containers seem to be converging and offering multiple options to achieve the same result?
-What are the risks – and benefits – of moving my applications? 

We address these answers in a Black and White paper we did recently for Red Hat entitled:

“THE IMPERATIVE FOR HYBRID IT: CLOUD AND INNOVATION IN THE MODERN ERA” By Donnie Berkholz, Research Director, Development, DevOps and IT Ops, 451 Research

You can download the paper here.

If you have any questions, feel free to contact me: bob.winter@the 451group.com, or Donnie Berkholz: donnie.berkholz@451research.com.
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We're livestreaming sessions from #451HCTS!

Did you miss your flight to Las Vegas for this year's Hosting + Cloud Transformation Summit? Have no fear! We've partnered with BrightTALK to bring event sessions to folks back in the office via a livestream. 

Register for the sessions here, and be sure to follow along on social using #451HCTS!
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