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 ‚Äì and benefits ‚Äì 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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Enterprise IT executives expect 60% of workloads will run in the cloud by 2018

SaaS deployments predicted to represent nearly one-quarter of all enterprise workloads; IaaS usage poised to double

451 Research‚Äôs latest Voice of the Enterprise: Cloud Transformation survey of IT buyers indicates that 41% of all enterprise workloads are currently running in some type of public or private cloud. Bymid-2018, that number is expected to rise to 60%, indicating that a majority of enterprise workloads will run in the cloud in the near term.

Among the various types of cloud deployment models, enterprises are most likely to use on-premises private cloud and software as a service (SaaS), each accounting for 14% of all applications. Respondents indicate usage of on-premises private cloud will remain flat while SaaS is expected to grow sharply to nearly one-quarter (23%) of all enterprise workloads by mid-2018.
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451 Research Analysts and Industry Experts to Tackle Business Disruption in the Age of Cloud at the upcoming Hosting + Cloud Transformation Summit

What: Hosting + Cloud Transformation Summit

Where: Bellagio Resort & Hotel, Las Vegas

When: September 19-21, 2016

451 Research Analysts and Industry Experts to Tackle Business Disruption in the Age of Cloud at the upcoming Hosting + Cloud Transformation Summit

At HCTS, join over 500 corporate leaders, industry visionaries, IT practitioners, and financial professionals as they learn, network and map out strategies for today's rapidly changing IT landscape.
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