Weekly CloudNews: 25% of Environments to Go All-Cloud in Next Year

Welcome to this week’s edition of CloudBolt’s Weekly CloudNews!

Earlier this week, we looked at how to choose cloud integration services and what you need to know about hybrid cloud management.

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With that, onto this week’s news:

Enterprises’ State of Hybrid Cloud Isn’t Pretty Amid COVID

Kelly Teal, Channel Futures, June 23, 2020

“Three full months after COVID-19 pushed U.S. organizations to follow their overseas counterparts into supporting remote work, the impact of that shift on IT continues to grow ever more apparent. The latest in a series of findings from cloud vendors, in particular, comes from Virtana. And the results in the report, “The Current State of Hybrid Cloud and IT,” point to enterprises’ irrefutable need for strong partner guidance.

The main reason? Firms that stopped their cloud migrations during the pandemic were (and are) two-and-a-half times more likely to suffer IT outages that hurt their SLAs, Virtana found.

‘The channel needs to offer cloud migration expertise to check that their customers are ready to migrate or if further work is needed,’ Chris Carvacho, vice president of OEM and channel at Virtana, told Channel Futures. ‘By benchmarking before migration and testing workloads in the new hosted environment, you can show your customer what to expect a migration will deliver. [This] helps create a strong bond as a key adviser.’

On the other hand, businesses that stayed the cloud course experienced few outages. They also had fewer visibility and performance problems, Virtana found in its assessment of the state of hybrid cloud. Partners should play a role in steering those ongoing efforts and look for opportunities to help organizations still struggling.”

A Quarter of all Enterprises Will Move to All-cloud Environments within a Year

Sneha Bokil, Enterprise Talk, June 23, 2020

“In a survey from O’Reilly Media, one-fourth of IT managers predict their enterprises plan to move all of their applications to the cloud by next year. The report is based on a survey of 1,283 IT managers was conducted in January and February. Nearly 20% of them said large organizations (over 10,000 employees) have already moved 100 percent of their applications to the cloud.

The majority of companies expect to increase their usage of cloud-based infrastructure, while one-fourth of them indicate they will entirely move to the cloud. The report says it is a significant shift as 67% of IT managers plan to move the majority of their applications to the cloud. Offering insights about preferred vendors, the report said 54% of them use multiple cloud providers. More than two-thirds of vendors use Amazon Web Services (AWS) while nearly half of them use Microsoft Azure, and 32% use Google Cloud Platform (GCP). Sharing details about overall deployment, the report said public cloud is the most popular option, with a usage share greater than 61%. Meanwhile, traditional on-premises deployment is close to half and the Hybrid cloud is third, with approximately 39% usage.”

IT Modernization Yields Business Benefits Even in Early Stages

Juan Orlandini, DevOps.com, June 22, 2020

“In recent years, with the emergence of newer technologies ranging from the cloud to machine learning, IT modernization has evolved from a replacement of end-of-life infrastructure to an enabler of innovation and business value. It is a complex process that can take months or even years, but a recent survey shows that the effort begins to deliver measurable results almost as soon as an organization executes the first steps on its roadmap.

In The State of IT Modernization 2020, an IDG Research Services survey of 200 IT executives commissioned last December by Insight Enterprises’ Cloud + Data Center Transformation team, respondents that had completed 25% or less of their initial modernization objectives reported achieving business improvements in each of the eight categories measured. Sixty-five percent had already achieved better quality of service. Significant progress had also been made in improving customer experience/satisfaction (52%), cost savings (50%), uptime (44%) and the ability to create new revenue-generating products and services (42%). 

Organizations that had completed their initial modernization objectives reported even better outcomes on all eight measures, notably including the ability to extract business value from data (56%) and faster time to market for new products and services (50%). 

The findings clearly demonstrate that a modernized IT ecosystem is a core building block of business transformation. Whether it’s spinning up a new service or application quickly, doing a deep data dive to identify new market opportunities or using artificial intelligence to improve sales forecasts or warehouse operations, it’s essential to have the horsepower, agility and advanced data analysis capabilities to do the job.”

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