
Virtualization and Cloud executives share their predictions for 2014. Read them in this VMblog.com series exclusive.
Contributed article by Patrick White, CEO of enterprise cloud company, Synata
Hybrid Saas Deployments: The Future of the Enterprise Cloud
It's
an interesting time to be in the enterprise cloud business. Countless cloud
startups are developing intuitive products due to the low infrastructure costs
and barriers to entry. End-users are eating them up. Dropbox just hit 200
million users - you can bet that wouldn't have happened if they hadn't started
selling to teams and the enterprise. On the otherside, many large companies are
still stuck with monolithic, application suite enterprise software.
Each
year, we have people proclaiming it "the year of the cloud." The truth is, this
transition isn't going to happen over night. The cloud is still misunderstood by
a surprising amount of business people. According to a Citrix survey, 51% of
people think stormy weather affects cloud computing. That being said, here are
our cloud predictions for 2014.
Enterprise
Cloud Adoption Accelerates, Duh!
Organizations
are finally seeing the benefits the cloud can provide in cost savings,
usability, and efficiency. Employees are experimenting with apps that make their
job easier. Each functional area now has access to cloud tools that were
specifically developed for marketing, sales, HR, etc. Tech-savvy employees are
often ahead of the technology curve. Equipped with everything from mobile
devices to their own personal clouds, these productive workers are helping to
push
businesses toward cloud adoption.
Cloud
service providers are slowly gaining more trust by stepping up their
availability and security. A
recent Gartner
survey
found that only 38 percent of all organizations surveyed indicate cloud services
use today. However, 80 percent of organizations said that they intend to use
cloud services in some form within 12 months. Growth
in big data will drive cloud adoption as a result of the increasing demands and
volumes associated with data management and analysis.
More
Emerging "Best of Breed" Cloud Applications
We've
reentered an era of best of breed applications. It used to be that in order to
get mass distribution, a startup's best bet was to get acquired early by one of
the big vendors. Once acquired, they'd have access to a sales force that could
sell directly to the CIO. Now, Instead of going through the CIO to sell the
product, companies target managers and doers - the people who actually use the
tool. They're able to download the product (usually for free) from the
cloud.
This
is a good thing because it means apps can be more tailored to the individual.
Could you imagine a huge enterprise vendor like Microsoft building three CRMs:
CRM for Road Warriors, CRM for SDRs, and CRM for People Just Showing Up For A
Paycheck? No way - but startups can and probably will. Every function across an
enterprise will start to see very specific, highly connected apps looking
to fill niches not yet accommodated by larger vendors.
Hybrid
SaaS Deployments (On-Prem + Cloud)
Many
organizations are adopting a hybrid approach that allows them to enjoy some of
the advantages of the cloud while keeping greater control over some of their
data. This is a particularly attractive option for companies that are subject to
strict security or compliance policies.
Interest
in private clouds tends to follow on the heels of success with data center
virtualization, which leads to cost savings. But private cloud computing still
looms large, with organizations needing to implement self-service provisioning
for end users. The driver of private cloud adoption is really greater speed of
IT response to business needs.
It's
only a matter of time before one or more of the cloud-only vendors will start
doing an on-premise, private cloud version of their products. Once a huge
enterprise company like Box starts doing this, the others will follow.
The
cloud has infiltrated the enterprise. In 2014, be on the lookout for higher
cloud adoption rates, more specialized enterprise apps, and hybrid SaaS
deployments. Just for fun, here are some other trends to revisit in a
year.
-
Enterprise
app ecosystems allow partners to integrate the core product into their mobile
and desktop apps. Salesforce's App Exchange is a great example. It'll be
interesting to see how other enterprise companies develop their
ecosystems.
-
With all
these best of breed applications gaining traction, how will IT manage
integrations? Will we see a re-birth of middleware?
-
As these
app ecosystems grow, will there be a movement towards the standardization of
APIs or normalizing data schemas?
##
About the Author
Patrick
White has spent the
last decade architecting computer software at companies including Intuit,
Microsoft, and VistaConnect. Prior to founding the consulting firm Ally Software
in 2009, Pat oversaw the development of award-winning products as a Group
Product Manager at Fortify Software (HP). Having spend the last several years
building large scale systems for enterprise and government clients, Patrick
recognized the extent to which snowballing data siloing was impacting
businesses.