In this 3-part ESG Video Series, ESG's Terri McCLure, Dan Conde, and Edwin Yuen talk about their expectations for the Cloud segment in 2017. This is Part 1 of 3.
Dan: Hi, I'm Dan Conde, analyst for cloud and networking. I want to ask the other analysts who cover converged infrastructure and systems management, what their thoughts are on what will unfold in 2017. Joining me today are Edwin Yuen and Terri McClure. Edwin, what are your thoughts on how the adoption of cloud computing affects systems management? We have long used products like System Center or Oracle Enterprise Manager for on-premises systems. Can they just be extended to work in a cloud? Let's say you're running Oracle within a VM in a public cloud for example, can you manage that using regular tools? How do you see that evolve in 2017?
Edwin: Well, Dan, in the past couple years, we've started to see a real divergence in approaches to systems management, as cloud has become more and more integrated. On one hand, we have the traditional systems management vendors like Microsoft, VMware, HP, and Oracle, who are adding features to their on-premises solutions to reach into the cloud. On the other hand, we have the new cloud-born tools like ServiceNow, Scalar, and others. What I see in 2017 is that both sides are positioning themselves as full solutions, but we're likely to see even greater divergence in approaches, as traditional vendors attempt to build on their infrastructure strength and cloud- born vendors focus on the emerging cloud-native, and public cloud based management needs. We may even see more vendors follow Microsoft's path, which is to take both a traditional and a cloud-native management solution. But in the end, I don't see a true convergence of capabilities in systems management.
Dan: Terri, we have many people who need to run a private cloud on-premises. They have many reasons such as compliance or perhaps to get predictable costs. How do you see the adoption of public cloud and hyper converged systems in 2017? Can there be peaceful coexistence? Or is there a tension or a tug of war between different camps?
Terri: Thanks Dan. Good question. Hyper converged systems can give IT many of the same storage and computing advantages that they get from the cloud. Like fast start up, minimal management overhead, and the ability to quickly provision workloads. And they allow IT to gain these levels of agility and efficiency while keeping the infrastructure and management on-premises. That said, it's really not a zero sum game. Many IT organizations I talked to plan to run in some kind of a hybrid version, leveraging on-premises infrastructure for known fixed workloads or to ensure compliance or...because cloud cost can be high given the potential mix of charges for compute memory VM storage and egress fees. I really don't see tension here.
Hyper converged platforms in the cloud can be very quite complimentary. The public cloud is a great solution, in fact, for transient workloads, test and dev or temporary dynamic workloads like ad campaigns. But for known workloads such as those typically found in most business application environments, the cloud really may not live up to its cost effective reputation. And I expect IT organizations to be looking towards hyper converged solutions to get cloud like agility on-premises for those types of applications.
Dan: So it looks like 2017 is a year where we will see a continued evolution of trends we saw in 2016. There is no big surprise. But it looks like extreme positions of going all out into the public cloud or going back all on to on-premises are not in the cards.