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Cloud Spending Will Increase 1 Billion%

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Cloud Spending Will Increase 1 Billion%

Cloud spending is certainly a hot topic. It seems like every week a new study comes out analyzing cloud computing growth. Whether it’s that Public Cloud Spending will reach $47.4B in 2013, Global SaaS spending projected to grow from $13.5B in 2011 to $32.8B in 2016, the public cloud services market is forecast to grow 18.5 percent in 2013, or cloud spending at Dunder Mifflin will increase 200% by 2020, the indication is that cloud adoption and cloud spending are on the rise. But how is that relevant to you?

cloud spending

Does it matter to the everyday CIO that cloud spending at midsized companies west of the Mississippi is going to increase by 15% over the next 3 years? The relevant question isn’t how much will cloud adoption and cloud spending increase, but why will it do so? It’s the “why” that matters to the business. If you understand the why, it becomes easier to put context around the statistics coming out of these studies. It comes down to a shift in the industry – a shift in the economics of how a modern day business operates. This shift revolves around the way IT services are being delivered.

To figure out where the industry is going, and why cloud spending and adoption are increasing, you need to look at where the industry has come from. The shift from on-premise IT to public cloud began with SaaS based technologies. Companies like realized that organizations were wasting a lot of time and money buying and deploying hardware for their CRM solutions. Why not use the internet to be able to allow organizations to pay a subscription fee instead of owning their entire infrastructure? This, however, was not true cloud computing. Next came IaaS with Amazon’s EC3 initiative. Essentially, Amazon realized it had excess compute capacity and decided to rent it out to people who needed the extra space. IaaS put an enormous amount of pressure on corporate IT because App Dev. teams no longer had to wait weeks or months to test and deploy environments. Instead, they could start up right away and become much more efficient. Finally, PaaS came about with initiatives such as Microsoft Azure.

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The old IT paradigm, or a private cloud environment, consists of organizations buying hardware and software and keeping it in their datacenter behind their own firewalls. While a private cloud environment doesn’t need to be fully virtualized, it does need to be automated and very few organizations are actually operating in a true private cloud environment. Ideally, a true private cloud environment is supposed to let internal IT compete with public cloud providers by providing a similar amount of speed and agility that a public cloud allows. While the industry is starting to shift towards public cloud, the private cloud is not going away. Public cloud will not be the only way to operate IT, or even the majority of the way, for a long time. This brings us to the hybrid cloud computing model; the direct result of this shift. Hybrid cloud is the combination of private and public cloud architectures. It’s about the ability to be able to seamlessly transition workloads between private and public, or, in other words, moving on-premise workloads to rented platforms where you don’t own anything in order to leverage services.

Shift to hybrid cloud spending

So why are companies shifting towards a hybrid cloud model? It all comes down to velocity, agility, efficiency, and elasticity. IT delivery methodology is no longer a technology discussion, but, rather, it’s become a business discussion. CIOs and CFOs are starting to scratch their heads wondering why so much money is being put towards purchasing hardware and software when all they are reading about is cloud this and cloud that.

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Cloud computing spending and adoption rates are increasing because the shift in the industry is no longer just talk – it’s real and it’s here now. The bottom line? We’re past hypothetical discussions. There is a major shift in the industry that business decision makers need to be taking seriously. If you’re not modernizing your IT operations by moving towards a hybrid cloud model, you’re going to be missing out on the agility and cost savings that can give your organization a substantial competitive advantage.  This is why cloud adoption and cloud spending are on the rise. This is why you’re seeing a new study every month on the topic.

By Ben Stephenson, Journey to the Cloud


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What Was Great in 08' Now Needs an EOS Update

Back in 2008 I still had a faceplate for my car radio, Bleeding Love by Leona Lewis was crushing the pop charts, and organic bean sprouted bread was something you’d find in the pet food aisle. It’s also the year Microsoft released Windows 2008 and SQL 2008, leaving a lasting impression like a tune you can’t get out of your head. For Windows Server 2008, it was the first Windows edition that allowed you to license for virtualization. If you recall, there used to be an Enterprise Edition of Windows 2008 that allowed for 4 VMs and if you needed 12 VMs you had to purchase 3 licenses. Datacenter provided unlimited VMs, and Standard edition both covered standalone and virtual machines.  At the time Microsoft was really making us work to understand the minutia of their licensing rules. Thank goodness Microsoft’s licensing has gotten a lot easier to understand (insert sarcasm.) Windows 2008 and 2008 R2 and SQL 2008 and 2008 R2 had a good run, and like all good things, including Leona Lewis’s career, it will be coming to an end. SQL 2008 and 2008 R2 End of Support (EOS) is July 9, 2019. Windows 2008 and 2008 R2 EOS is January 14, 2020.  Once Microsoft products go EOS, Microsoft offers ZERO support for the product, meaning they’ll no longer provide updates and patching. With no support, it would leave the product vulnerable to security threats because no fixes will be available to prevent infiltration. Security updates are mission critical. In 2016, 4.2 Billion records were stolen by hackers. Twenty percent of organizations lose customers during an attack and 30% of organizations lose revenue during an attach. Not fun!  It would be like if John Rambo retired and stopped drawing blood, which is a bad analogy because Rambo: Last Blood is being released in September. This begs that question, is this really the Last Blood? Probably not, however you can be certain the Microsoft’s “Last Blood” is actually happening. So what to do when your support goes away? Well you’ll need to think about modernizing and in this case adopting cloud. It’s a good time to seize EOS as an opportunity to transform with Microsoft’s latest technologies. A jump to Azure will allow you to migrate your Windows 2008 and 2008 R2 workloads to Azure VM or Azure SQL Database. Customers who move 2008 and 2008 R2 workloads to Azure Virtual Machines (IaaS) “as-is” will have access to Extended Security Updates for both SQL Server and Windows Server 2008 and 2008 R2 for three years after the End of Support dates for free. Those that decide to move to Azure SQL Database Managed Instance (PaaS) will have access to continuous security updates, as this is a fully managed solution. Or you could stay with on-premises licensing and upgrade to Windows 2019 or SQL Server 2017 by leveraging your Software Assurance benefits to modernize on-premises or on Azure (i.e. Azure Hybrid Benefit), to help reduce security risks and continue to get regular security updates. Regardless of what investment you decide to make, GreenPages can help right-size you for the future and ensure your data continues to be protected. To have further conversations about Windows 2008 and 2008 R2 and SQL 2008 and 2008 R2, please connect with your Account Executive or reach out to us!