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Virtana 2020 Predictions: The Future of Cloud Management is Dynamic Resource Allocation

VMblog Predictions 2020 

Industry executives and experts share their predictions for 2020.  Read them in this 12th annual VMblog.com series exclusive.

By Bob Farzami, VP of Cloud Strategy, Virtana

The Future of Cloud Management is Dynamic Resource Allocation

2019 saw more and more businesses move away from the traditional IT infrastructure and realize the true potential of implementing the cloud into their business strategy. Last year for VMblog, Virtana's Tim Van Ash predicted that as a result of the cloud becoming increasingly mainstream, we could expect to see organizations becoming more deliberate about their workload placement decisions, namely investing in workload analytics and simulation capabilities as part of the overall strategy. 

Currently, global enterprises are at point where they recognize the need to transform IT operations. These organizations are digitally transforming their on-premises delivery and deployment platforms to a hybrid public/private cloud model and evolving from a reactive operational model to a proactive, and eventually autonomous, approach. To achieve this, enterprises need to transform their method of infrastructure management for mission-critical deployments that involves an amalgamation of big data analytics, real-time monitoring, and AI/ML technologies. The new method must take into account full-stack hybrid cloud visibility, application-centricity, and web-scale operation.

To execute an effective cloud initiative and migrate legacy applications to the cloud is a challenge for every enterprise, no matter their size or depth of resources. With the increased usage of the cloud comes the scrutiny of the associated costs of maintaining it; which is why this year, our predictions focus on how enterprises can manage their cloud investments.

According to Gartner, enterprise IT spending for cloud-based offerings will grow faster than traditional (non-cloud) IT offerings through 2022. However, a recent 451 Research survey found that more than half of large enterprises worry about cloud costs on a daily basis, and 80% acknowledge poor cloud financial management has had a negative impact on their business, including lower quality of service due to poor resource utilization and planning. Companies acknowledge that cost optimization is a major element of hybrid operations, where a strong understanding of cloud costs is necessary to consider when determining the best execution venue.

Public cloud optimization has experienced a significant evolution over the last few years. The first generation of cloud optimization services focused on bill analysis, with the second generation focusing on cross-analyzing cost with capacity. The third and current generation encompasses the previous two generations, in addition to hybrid infrastructure monitoring and capacity planning. This generation yields recommendations on whether workloads would perform best on-premise or in the cloud, depending on what is more cost effective.

In 2020 and beyond, we will see a fourth generation of public cloud optimization emerge: dynamic resource allocation, enabled by workload automation technology comprised of performance, capacity and cost management capabilities. In order for Gen-4 to proliferate, security and governance issues will need to be addressed for third-party vendors to gain the access they need to analyze workloads and change control processes for mission critical applications. To reduce public cloud spending while still maintaining performance, organizations will apply analytics that go beyond performance data to include capacity and cost.

With the cloud continuing to be a significant benefit to the enterprise, organizations will make a point to be aware of how their cloud-based offerings are performing, both as a resource and as a cost to the enterprise. As businesses realize the importance of optimizing resource utilization, they will also become aware of the impact of a firm cloud financial management strategy as well as the importance of cloud optimization to their overall hybrid operations. The evolution of cloud optimization will draw on its previous generations of cost analysis and capacity planning to ultimately emphasize on the performance and authority needed to achieve dynamic resource allocation.

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About the Author

Bob Farzami 

Bob Farzami is VP of Cloud Strategy at Virtana and former CEO of Metricly. Bob started his career as a hardware developer before taking on business development for early stage software companies. In recent years, his interest has been focused on the application of analytics to infrastructure management which inspired Metricly, now known as Virtana's CloudWisdom. He lives in NYC and spends any free time that he can find running in Central Park and spending time with his wife and daughter.

Published Tuesday, December 03, 2019 7:36 AM by David Marshall
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