& cplSiteName &

Enterprises Not Rushing to Embrace Cloud

Carol Wilson
8/23/2013
50%
50%

Enterprise IT departments have not embraced cloud services with the fervor once expected, say executives at two major telecom providers who are delivering cloud as well. The reasons are varied, but many are the same today as they were three years ago: IT execs fear moving their critical apps to the cloud means losing control, facing greater security risks and being locked into one provider's cloud.

So while cloud services are growing, for them to succeed as expected, telecom operators have to work harder to help enterprises through the transition and have to improve what their clouds deliver to make it more closely match enterprise requirements.

Doug Junkins, CTO of NTT America Inc. , spoke recently at a conference in Singapore and says he found enterprise executives were mostly raising the same familiar issues. "We are still trying to debunk the same common misconceptions about security, resource control and migration," he says. "There is a level of conservativeness in a lot of enterprise IT executives -- they are not willing to make what they see as wholesale changes."

A recent Verizon Terremark blog on debunking myths about cloud addressed the common issues with language similar to that of cloud conferences held in 2011, an indication that things haven't moved that far that fast. Verizon Terremark's sales of cloud services are increasing, says John Considine, CTO, but that's because business units within enterprises are going out to buy their own cloud-based resources, not because cloud services are being warmly embraced by the IT departments. (See 7 Truths About Cloud Computing.)

"We have taken a careful look at who is buying cloud services from us and in the enterprises that are adopting cloud computing, a lot of the work is coming directly from the business units, from the chief marketing officer, the R&D organizations -- non-traditional IT buyers. In many cases, we are pulling the IT folks along with us," he says.

Considine believes IT executives' fears about cloud services are being fed by hardware and software vendors who stand to lose sales if enterprise applications move to the cloud. "Server vendors, storage array vendors, network vendors -- they are not really interested in having cloud do well," he says. "They will help anyone who wants to, not use cloud. There are a lot of people trying to subdue cloud -- but even in the face of that kind of background drag on the system, cloud continues to grow."

Both Junkins and Considine believe enterprises will be won over by the long-term benefits of cloud-delivered services and apps -- lower capex and opex, greater flexibility in responding to market demands, and even, perhaps ironically, faster disaster recovery. But they say it is going to take more effort on the part of service providers and continuous improvement both in the cloud services themselves and in how the transition to cloud is managed.

"We are taking an educational approach," says Junkins. "We need to be able to demonstrate these benefits clearly to our customers. Any time your servers are connected to the Internet, there will be some level of risk and cloud isn't any different on that score. But you can use data duplication and move service from one location, so that if there is a disaster in California, for example, and the data has been backed up, then we can have you up and running more quickly on servers available in Virginia."

Considine says his team is constantly looking for success stories, where enterprises are using cloud to a competitive advantage, and he expects to see cloud continue to gain momentum in this way as well.

But the other piece of it is acknowledging that cloud services still need to mature, he adds. Verizon has been actively promoting what it calls the "cloud of tomorrow" via blogs such as this one, trying to drive home the difference between the service it offers and what is more commonly thought of as commodity clouds such as Amazon Web Services and others. Verizon also is talking about what needs to happen next for cloud services to succeed across a broad spectrum of enterprise applications, including some mission-critical ones.

More commodity cloud deployments require enterprises to plan for the potential failure of any component at any time, Considine says. That may work for applications that are stateless and can easily horizontally scale, but many critical enterprise apps don't fit that profile and would have to be substantially re-written -- a process for which enterprise IT folks don't always have the talent or the tools, he adds. In addition, all the effort and expense enterprises have spent around performance management goes away with a commodity cloud service, and the enterprise is forced to accept technology choices made by its cloud vendor, which leads to the loss of control and insecurity many enterprises fear.

"What we are asking is, are these attributes of cloud computing or the current implementations?" Considine says. "By doing cloud better, more workloads can go into the cloud, enterprises can find it easier to take advantage of it and you actually reduce the aspects of lock-in cost and the burden of making the transition and you end up with an overall better solution."

That's the solution-sell more telecom cloud providers are likely to be taking.

— Carol Wilson, Editor-at-Large, Light Reading

(15)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
Page 1 / 2   >   >>
brookseven
50%
50%
brookseven,
User Rank: Light Sabre
8/26/2013 | 2:38:58 PM
Re: Self-preservation
 

The fundamental problem is that we define all things "The Cloud".  I tried to break that into several categories earlier and yes I agree for a percentage of applications public cloud offerings will not be used.  On the other hand...SalesForce.  :)  Not much more private than customer information and price lists and yet SalesForce is going gang busters.

My point all along is that different solutions will work for different folks.  On top of that between time and cost nobody can move everything at once.  An enterprise might move A major application once every few years.

seven

 
sam masud
50%
50%
sam masud,
User Rank: Light Sabre
8/26/2013 | 2:30:57 PM
Re: Self-preservation
Thanks, and I see your point. But basically there are two types of customers--the mass market and businesses. Public clouds would work for the mass market, but private or hybrid clouds might be what businesses would prefer.
brookseven
50%
50%
brookseven,
User Rank: Light Sabre
8/26/2013 | 2:02:17 PM
Re: Self-preservation
The whole point of "The Cloud" is internet connected virtual environment.  The whole thing started around using public, shared resources in a virtual manner.

How does that become "Private"?  At that point, people are just using IP networking to 3rd party data centers.

seven

 
sam masud
50%
50%
sam masud,
User Rank: Light Sabre
8/26/2013 | 1:35:42 PM
Re: Self-preservation
I'm curious why you hate the term Private Clouds....
mark-r
50%
50%
mark-r,
User Rank: Light Beer
8/26/2013 | 1:14:45 PM
Re: Self-preservation
Perhaps the key addressing any valid (ie not self-preservation type) obstacles for enterprise cloud adoption is to allow (but not require) the enterprise app developers to have, as much as desired, in-depth control over their application deployment and execution environment in the cloud. An open platform as a service, with customizable development environment as well access to 'bare metal' server hardware would -- while providing the cloud benefits of virtually limitless, elastic capacity, horizontal scalability, everything on-line etc. -- enable full developer-controllability of all relevant aspects of running their applications.


Of course it also matters what the provider hosted server hardware is, in particular for high performance apps: for instance many of the ultra-low latency trading, risk calculus and some specialized work flows such as technical/scientific simulations, genomics algorithms etc. get their performance from specialized hardware such as GPUs and custom logic (FPGA) processors.

It is a challenge, but the progressive cloud providers will need to enable the application owners to control the performance impacting aspects of running critical applications in the cloud. The key to success is a platform (as a service) that makes it more productive to develop and deploy horizontally scalable, high throughput, low latency apps in the cloud than on the enterprise's own IT facilities.
telecom007
50%
50%
telecom007,
User Rank: Light Beer
8/26/2013 | 7:21:10 AM
Re: Self-preservation
If there is any "Massive" movement of the Enterprise space to the Cloud it's more on the likes as someone said "Private Cloud:".  Just look at the continued explosive growth of Data Centers.  Rack space in Data Fortresses have become no-brainers for Disaster Recovery or Better security than keeping all Enterprise-owned hardware on Prem.

For CRM services like Salesforce, yes One Button Bob might apply but you don't see that same ease/smoothness with Exchange or just about anything Microsoft whether it be the OS or Files.

As the article stated the Turf protection by Hardware vendors is a reality as I've also seen that in the same vein by Hardware vendors for Premise-based PBXs vs Hosted PBXs.  

Eventually the Vendor Turf protection will lose out over time but this is a longer play than what some were predicting.

 
Carol Wilson
50%
50%
Carol Wilson,
User Rank: Blogger
8/24/2013 | 7:33:02 AM
Re: Resistance to change
Phil, restrictions on where data can reside is definitely having an impact on cloud services, especially in Europe. 

And brookseven, I like the phrase One Button Bob and I plan to re-use i liberally. 
Phil_Britt
50%
50%
Phil_Britt,
User Rank: Light Sabre
8/23/2013 | 6:33:07 PM
Resistance to change
Even though people certainly will resist change, even some of the most resistant (financial services companies) are moving to the cloud now. But some will use only hybrid or private cloud models, especially for critical data.

The financial services providers, health care providers and others need to know where data resides, and there are limitations on the information that can reside on offshore servers. So some may never adopt full-blown cloud infrastructures, but the trend is certainly there.

 
brookseven
50%
50%
brookseven,
User Rank: Light Sabre
8/23/2013 | 4:43:28 PM
Re: Self-preservation
Carol,

Actually, I would argue it is the normal round peg problem with technologies.  There are places that various Cloud solutions work best, but it will never be 100%.  So, will the cloud take over everything?  No.

Secondly, any Enterprise can only change so many things at a time.  It is easier to adopt new technologies where they are seamless OR are greenfield.  Walking into a company and say...lets retire your Exchange Infrastructure...is a work of migration.  Migration ADDS work (and thus people/time) during the migration.  What I rarely see is what we used to call "One Button Bob" migration tools.  Press a button and the tool reads the data from the old tool and pre-populates the new one.

The reason this bit is often ignored is that (especially at the beginning) technologist tend to be evangelicals.  I am better/faster/cheaper so buy me!  Well, what if you are saving $100/year on a $1M budget?  You are better but its a LOW priority.

I remember talking at a Forum where I was next to Nan Chen talking about Carrier Ethernet.  I pointed out that Enterprises could really use the firing of the guys who know about T-carrier services and that was an awesome OPEX savings.  Nan (to paraphrase) said that OPEX savings was not about firing people.  But of course, that is exactly what it is about if it is going to be meaningful.  Most new technologies don't really think through the personnel restructuring.

In fact the way I would put it to a CIO is that he or she could redeploy the budget on higher value items and put rote services to a 3rd party.

seven

 
Carol Wilson
50%
50%
Carol Wilson,
User Rank: Blogger
8/23/2013 | 12:26:01 PM
Re: Self-preservation
I think the points you raise are things with which my sources - Doug Junkins and John Considine -- would agree. 

People are resistent to change, which is why they want the new CRM to behave just like the old one. There are persistent concerns about turning over information and yes, as I noted yesterday, outages are all too common. 

That's why I think it's interesting that companies like NTT and Verizon are trying to evolve how they deliver cloud services. They may be facing impossible odds, as you seem to be saying, but I think they at least recognize the nature of the challenge. 
Page 1 / 2   >   >>
Light Reading’s Upskill U is a FREE, interactive, online educational resource that delivers must-have education on themes that relate to the overall business transformation taking place in the communications industry.
NEXT COURSE
Friday, September 30, 1:00PM EDT
Gigabit & the Great Migration
Robert Howald, Vice President, Network Architecture, Comcast
UPCOMING COURSE SCHEDULE
Wednesday, October 5, 1:00PM EDT
Gigabit & Smart Cities
Joe Kochan, COO & Co-Founder, US Ignite
Friday, October 7, 1:00PM EDT
Gigabit & DOCSIS 3.1
Ty Pearman, Director, Access Architecture, Comcast
Wednesday, October 19, 1:00PM EDT
Securing a Virtual World
Rita Marty, Executive Director, Mobility and Cloud Security, Chief Security Office, AT&T
in association with:
From The Founder
Light Reading today starts a new voyage as part of a larger Enterprise.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
LRTV Custom TV
Flexible Deployment Approaches for the Gigabit Services Evolution

9|29|16   |     |   (0) comments


For many operators, the gigabit evolution begins with the shift from DOCSIS 3.0 to DOCSIS 3.1. But that move represents a change not only in the protocol itself, but in the approach to architecting their entire DOCSIS delivery chain -- from the headend to the outside plant and home gateway components.

Jonathan Ruff, senior director of global technical ...

LRTV Interviews
Level 3 VP: Enterprises Need More for Less

9|29|16   |   05:27   |   (0) comments


Andrew Dugan, Level 3 group vice president of global technology and IT, says enterprises need more bandwidth and they need it faster and with greater security, but they want to spend less, if possible. They are looking to carriers to reduce their network complexity and help protect them from cyberattacks as well.
LRTV Interviews
CenturyLink: SDN/NFV Pose New Interconnection Possibilities

9|28|16   |   04:37   |   (0) comments


Network operators should develop new APIs and business processes for reselling virtual assets to each other, says CenturyLink's Bill Walker. That will enable them to build digital business portfolios that help them avoid becoming commodity transport providers.
LRTV Interviews
Level 3: Overcoming Terror of Being Supplier, Integrator & Developer

9|28|16   |     |   (0) comments


At Light Reading's NFV & Carrier SDN event in Denver, Travis Ewert of Level 3 Communications said there is terror in becoming supplier, integrator and developer, but it can be overcome and be cost effective.
LRTV Custom TV
Introducing IoT World News

9|27|16   |   01:43   |   (0) comments


Self-driving cars, medical sensors, smart cities... and refrigerators. In order to address the huge scope of IoT, KNect365 has created a unique online community that will help businesses to understand and monetize the opportunities that live within the IoT market. We look forward to welcoming you to IoT World News -- your gateway to a better connected future.
LRTV Interviews
AT&T: Reusable Functions Next NFV Key

9|27|16   |   06:03   |   (0) comments


The next generation of NFV has to break functions down into reusable software chunks, making everything much more cloud-like.
LRTV Interviews
Masergy on Security: Attackers Gaining Upper Hand

9|27|16   |   5:10   |   (2) comments


At Light Reading's NFV & Carrier SDN event in Denver, Ray Watson, vice president of Global Technology at Masergy, says that because of the growth in virtualization, the threat landscape is shifting in favor of the attackers. As a result, service providers need to think beyond just defending the perimeter and take a more holistic approach to security.
LRTV Interviews
Verizon Takes Next Step on Biz Virtualization Journey

9|26|16   |   4:38   |   (2) comments


At September's NFV & Carrier SDN event in Denver, Light Reading sat down with Victoria Lonker, director of Product and New Business Innovation at Verizon, to chat about where the carrier is with delivering virtualized services to business customers.
LRTV Interviews
Global Services: The $40B Face-Off

9|26|16   |   05:53   |   (1) comment


More service providers than ever before are battling it out to win a slice of what is now a $40 billion global communications services pie, explains Ovum Principal Analyst David Molony.
LRTV Documentaries
MEC Congress: The Key Takeaways

9|22|16   |   03:25   |   (3) comments


Three key takeaways from the Mobile Edge Computing (MEC) Congress in Munich, Germany.
Wagner’s Ring
Time to Shut Up About 'Dumb Pipes'

9|22|16   |     |   (19) comments


Service providers can't compete with OTT players. It just isn't in their DNA. Instead, service providers need to embrace what they're good at -- providing reliable, secure connectivity.
Wagner’s Ring
Keeping Your Tech Career Going After 50

9|21|16   |     |   (13) comments


How do you keep your career moving forward when you're past the half-century mark?
Upcoming Live Events
November 3, 2016, The Montcalm Marble Arch, London
November 30, 2016, The Westin Times Square, New York City
December 1, 2016, The Westin Times Square, New York, NY
December 6-8, 2016, The Westin Excelsior, Rome
May 16-17, 2017, Austin Convention Center, Austin, TX
All Upcoming Live Events
Infographics
Hot Topics
WiCipedia: The Women Helping Women Edition
Eryn Leavens, Special Features & Copy Editor, 9/23/2016
Eurobites: Telefónica Taps Juniper for Network Security
Paul Rainford, Assistant Editor, Europe, 9/26/2016
Open Source Getting on My Nerves
Carol Wilson, Editor-at-large, 9/26/2016
Powell Kills the Cable Show
Mari Silbey, Senior Editor, Cable/Video, 9/29/2016
Telstra Sees Quadrupled Data Capacity by 2020
Carol Wilson, Editor-at-large, 9/28/2016
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
Light Reading CEO Steve Saunders and UXP Systems CEO Gemini Waghmare discuss the strategic importance of digital identity for operators in the midst of transformation.
Join us for an in-depth interview between Steve Saunders of Light Reading and Alexis Black Bjorlin of Intel as they discuss the release of the company's Silicon Photonics platform, its performance, long-term prospects, customer expectations and much more.
Animals with Phones
There's Nothing Like Missing a Full Minute of Pokémon Go Click Here
Live Digital Audio

A vital part of increasing the number of women in comms is transforming the ways companies can support and empower women. While progressive company policies that support both men and women in achieving work-life balance are a step in the right direction, creating a company culture that supports those policies can at times be more challenging.

During this show, we'll talk to Lynn Comp, Senior Director of Industry and Sales Enabling (ISE) in the Network Platforms Group at Intel, about why those challenges exist and how companies can overcome them. She'll provide insight into how Intel has worked to create a culture that supports work-life balance, and provide steps and guidance for other companies wishing to do the same. We will also leave plenty of time to get your questions answered live on the air.