Welcome!

@CloudExpo Authors: Yeshim Deniz, Elizabeth White, Ed Featherston, Dana Gardner, Kevin Benedict

Related Topics: @CloudExpo, Microservices Expo, Containers Expo Blog

@CloudExpo: Article

The Right Cloud for the Growing Enterprise: Take Your Company Private

A private-PaaS-enabled private or hybrid cloud is the best way to deliver the freedom, control, and ROI that enterprise deserves

Remember the early days of the cloud? Outsourced application hosting seemed so...alluring. Public-cloud providers like Google, Heroku, EngineYard and DotCloud seduced us with promises of cost-efficiency, scalability and convenience. Early adopters spun off a few VMs, connected the users and prepared for growth. And when that corporate growth arrived, the public cloud would grow too.

At least that was the vision; yet the reality is more complicated. Public cloud deployment entails hidden costs. Enterprise growth introduces new challenges - challenges like data privacy, security and compliance. Public-cloud infrastructure doesn't scale for business growth. It scales for application growth, and though that's important, it's not enough to support the demands of the (growing) real-world enterprise.

The Public Cloud: It's a Good Thing
Public cloud infrastructure offers relief, relief for IT managers from the headaches of managing their own iron. Virtualization can lift the burden of application-management responsibility, lightening IT load. Public clouds deliver tangible benefits like shared-resource efficiencies, utility computing and scalability.

Those are great benefits for the IT manager seeking a turnkey outsourcing solution. It's an ideal situation: That IT manager hands over the keys to the DevOps kingdom, sits back, and watches the savings accumulate. And they do. To a point...

The hidden costs of the public cloud: language support, app migration, APIs and vendor lock-in
Public cloud offers a chance for IT managers to get out of the hardware management business. That's a compelling message, and a great value proposition. But there are hidden costs to deploying on a public cloud infrastructure, and the real-world enterprise must recognize them (and associated risks) before committing resources to "going public."

How multilingual is your enterprise?
Are you an IT manager? In what languages do your developers like to code? Probably the ones in which they're skilled, and the ones that are appropriate for the types of applications your business needs to create and run. Here's the catch: Most public cloud providers play favorites. That's fine if your apps are all in the right language, or if you're willing to code all-new greenfield apps from scratch in the new language. But what do you do if you have an existing suite of custom apps on which your end users depend, and oh, they were written in several different languages, and oh, your vendor only supports some of them? Expect to retrain your devs, hire for some new skills and recode. IT managers who have been through that process know it's not trivial, nor cheap.

Looking for straightforward SaaS support? Need Office 365 for your desktop clients? Public cloud infrastructure will do the trick. Does your enterprise maintain a suite of legacy applications? Moving to the public cloud introduces a basic practical challenge and another hidden cost: App migration isn't a simple process. Regardless of whether your developers code in your cloud vendor's preferred language(s), if your apps aren't written in them, you'll have to recode or customize, probably to a significant extent.

As long as you're budgeting for recoding, be sure to add a little more for connecting your data and messaging services. If your cloud-hosting provider doesn't support your database, prepare for data migration.

Finally, though public-cloud providers offer hosting and scalability at an attractive (at least as advertised) price, they're understandably out to make a buck. And to hold onto your business. To make the public cloud work, you'll have to adapt to your provider's way of doing things. You may be realizing some great cost-efficiencies, but your hosting provider has you locked in, and switching costs are now a formidable barrier to exit. Remember all that recoding you did for your vendor's benefit? Want to do it again for the sake of moving to another vendor? You've also lost leverage: if your hosting provider decides to raise monthly service charges, or make adjustments to SLA performance, you have little (affordable) recourse.

Enterprise Growth Brings New Opportunities, New Challenges
One of the great advantages to public cloud infrastructure is that it can scale. Vendors often promote that scalability as a way to support customer business growth. But that's not quite accurate: Public clouds don't grow with your enterprise. They scale to support application or traffic growth.

Real-world business growth introduces new demands on enterprise data - concerns like security, data sovereignty, compliance and privacy. Addressing those concerns is an imperative for the real-world enterprise, and not something that can be done in a public-cloud environment.

Your data is safe in the public cloud - most of the time. There are the occasional breaches, some of which receive histrionic publicity. Ultimately, security is peace of mind, and handing your data over to someone else (a public-cloud hosting infrastructure provider, in this example) requires trust and a leap of faith. As your large real-world enterprise experiences growth, data management becomes more important, and releasing your valuable data from under your span of control introduces risk.

How big do you want your enterprise to grow? If you're looking at international expansion, recognize a new risk of the public cloud hosting model: data sovereignty. Public cloud vendors host your data in their own data centers, in the locations your vendor prefers. That's okay if you're doing business in the same jurisdiction. But in many countries, your partners or government administrators can demand that their application servers retain and provide data from physical hardware located within a national boundary. Such inflexible data-sovereignty mandates can limit your ability to serve your subsidiary customers with pure public-cloud architecture.

The more your enterprise grows, the more visible its success becomes. With great success comes greater oversight. Public cloud architectures - with their one-approach-fits-all delivery - are understandably rigid, with standardized tenancy and service models. That makes for basic compliance with government regulations. But by the very nature of its serve-many operations, the public-cloud model can't be flexible enough to adjust to frequently evolving regulatory climates.

More business growth means more data to manage and a need for greater data privacy. But the more data to be managed, the more difficult it becomes to protect it, particularly in a public-cloud environment. We're not talking about cyber-attacks. We're talking about eavesdropping from government authorities. For instance, the USA Patriot Act empowers U.S. federal agencies like the FBI, CIA and Department of Defense to require enterprises to provide data records pertaining to suspected terrorist threats. This applies to data stored in U.S. jurisdictions, including data in the cloud. In the summer of 2011, Microsoft warned customers that the USA Patriot Act could require the company to hand over customer data to United States authorities. Your data's safe, it's just not as private as you'd like it to be.

A Private-Cloud Model Designed Around the Growing Enterprise, Not the Vendor
Public cloud isn't going away, and neither is private cloud. Private cloud technology marketers often lobby for the "pure," host-it-yourself private cloud environment. Public-cloud providers pitch the outsourced service model. The real-world solution lies somewhere in-between. Private PaaS is a flexible middleware layer that puts control of your data back in your own hands, enabling IT management to control applications, whether they're launched on-premise or to public cloud infrastructure.

Public cloud services promise cost savings. But with all the hidden costs, those savings can be temporary (or even illusory). A 2011 study by the Aberdeen Group found that an enterprise deploying private cloud saves twelve percent combined annual costs over a public cloud on a per-application basis. Companies that implemented private clouds also incurred 38 percent fewer costs related to security and compliance events compared to public cloud users. Public cloud users had 25 percent more incidents related to audit deficiencies, data loss, or data exposure and unauthorized access than private cloud users.

Private Platform-as-a-Service (PaaS) software can bridge the two extremes of public and private cloud. Some enterprises - small businesses and municipalities, for example - will benefit from the "pure" turnkey-outsourced public cloud service model. But the growing enterprise needs more - more security, more privacy, and strict adherence to compliance mandates - than a public-cloud model can support. For some, that will entail self-contained, on-premise iron. But for many growing enterprises, private PaaS can enable a flexible hybrid cloud model that enables data to shift as business priorities evolve. The real-world enterprise demands an operational model that flexible.

Grow Your Business...in Private
There's plenty of hype around the cloud. An IT manager must look beyond the hype to do what's right for the growing enterprise, and recognize that business interests should dictate cloud strategy, not the constraining operational limitations of a public-cloud service provider. The growing enterprise must address concerns of security, privacy, and compliance. A private-PaaS-enabled private or hybrid cloud is the best way to deliver the freedom, control, and ROI that enterprise deserves.

More Stories By Bart Copeland

As President & CEO of ActiveState Software, Bart Copeland brings more than twenty years of management, finance, and technology business experience to his role. With a passion for technologies that help people lead more productive and enjoyable lives, Bart is currently focused on ActiveState’s private platform-as-a-service (PaaS) offering, Stackato. With his vision for PaaS as an enabler to accelerate cloud adoption and value in enterprises, Bart is actively involved in the strategy, roadmap, business development and evangelism of Stackato. Bart is also an active angel investor and serves as a director on a number of other tech companies. He holds an MBA in Technology Management from the University of Phoenix and a Mechanical Engineering degree from the University of British Columbia.

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


@CloudExpo Stories
As organizations shift towards IT-as-a-service models, the need for managing and protecting data residing across physical, virtual, and now cloud environments grows with it. Commvault can ensure protection, access and E-Discovery of your data – whether in a private cloud, a Service Provider delivered public cloud, or a hybrid cloud environment – across the heterogeneous enterprise. In his general session at 18th Cloud Expo, Randy De Meno, Chief Technologist - Windows Products and Microsoft Part...
DXWorldEXPO LLC announced today that ICC-USA, a computer systems integrator and server manufacturing company focused on developing products and product appliances, will exhibit at the 22nd International CloudEXPO | DXWorldEXPO. DXWordEXPO New York 2018, colocated with CloudEXPO New York 2018 will be held November 11-13, 2018, in New York City. ICC is a computer systems integrator and server manufacturing company focused on developing products and product appliances to meet a wide range of ...
Andi Mann, Chief Technology Advocate at Splunk, is an accomplished digital business executive with extensive global expertise as a strategist, technologist, innovator, marketer, and communicator. For over 30 years across five continents, he has built success with Fortune 500 corporations, vendors, governments, and as a leading research analyst and consultant.
JETRO showcased Japan Digital Transformation Pavilion at SYS-CON's 21st International Cloud Expo® at the Santa Clara Convention Center in Santa Clara, CA. The Japan External Trade Organization (JETRO) is a non-profit organization that provides business support services to companies expanding to Japan. With the support of JETRO's dedicated staff, clients can incorporate their business; receive visa, immigration, and HR support; find dedicated office space; identify local government subsidies; get...
René Bostic is the Technical VP of the IBM Cloud Unit in North America. Enjoying her career with IBM during the modern millennial technological era, she is an expert in cloud computing, DevOps and emerging cloud technologies such as Blockchain. Her strengths and core competencies include a proven record of accomplishments in consensus building at all levels to assess, plan, and implement enterprise and cloud computing solutions. René is a member of the Society of Women Engineers (SWE) and a m...
In this presentation, you will learn first hand what works and what doesn't while architecting and deploying OpenStack. Some of the topics will include:- best practices for creating repeatable deployments of OpenStack- multi-site considerations- how to customize OpenStack to integrate with your existing systems and security best practices.
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at @ThingsExpo, James Kirkland, Red Hat's Chief Archi...
Digital transformation has increased the pace of business creating a productivity divide between the technology haves and have nots. Managing financial information on spreadsheets and piecing together insight from numerous disconnected systems is no longer an option. Rapid market changes and aggressive competition are motivating business leaders to reevaluate legacy technology investments in search of modern technologies to achieve greater agility, reduced costs and organizational efficiencies. ...
"With Digital Experience Monitoring what used to be a simple visit to a web page has exploded into app on phones, data from social media feeds, competitive benchmarking - these are all components that are only available because of some type of digital asset," explained Leo Vasiliou, Director of Web Performance Engineering at Catchpoint Systems, in this SYS-CON.tv interview at DevOps Summit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
In his general session at 19th Cloud Expo, Manish Dixit, VP of Product and Engineering at Dice, discussed how Dice leverages data insights and tools to help both tech professionals and recruiters better understand how skills relate to each other and which skills are in high demand using interactive visualizations and salary indicator tools to maximize earning potential. Manish Dixit is VP of Product and Engineering at Dice. As the leader of the Product, Engineering and Data Sciences team at D...
It is ironic, but perhaps not unexpected, that many organizations who want the benefits of using an Agile approach to deliver software use a waterfall approach to adopting Agile practices: they form plans, they set milestones, and they measure progress by how many teams they have engaged. Old habits die hard, but like most waterfall software projects, most waterfall-style Agile adoption efforts fail to produce the results desired. The problem is that to get the results they want, they have to ch...
Organizations planning enterprise data center consolidation and modernization projects are faced with a challenging, costly reality. Requirements to deploy modern, cloud-native applications simultaneously with traditional client/server applications are almost impossible to achieve with hardware-centric enterprise infrastructure. Compute and network infrastructure are fast moving down a software-defined path, but storage has been a laggard. Until now.
Without a clear strategy for cost control and an architecture designed with cloud services in mind, costs and operational performance can quickly get out of control. To avoid multiple architectural redesigns requires extensive thought and planning. Boundary (now part of BMC) launched a new public-facing multi-tenant high resolution monitoring service on Amazon AWS two years ago, facing challenges and learning best practices in the early days of the new service.
HyperConvergence came to market with the objective of being simple, flexible and to help drive down operating expenses. It reduced the footprint by bundling the compute/storage/network into one box. This brought a new set of challenges as the HyperConverged vendors are very focused on their own proprietary building blocks. If you want to scale in a certain way, let's say you identified a need for more storage and want to add a device that is not sold by the HyperConverged vendor, forget about it...
Digital Transformation is much more than a buzzword. The radical shift to digital mechanisms for almost every process is evident across all industries and verticals. This is often especially true in financial services, where the legacy environment is many times unable to keep up with the rapidly shifting demands of the consumer. The constant pressure to provide complete, omnichannel delivery of customer-facing solutions to meet both regulatory and customer demands is putting enormous pressure on...
The best way to leverage your CloudEXPO | DXWorldEXPO presence as a sponsor and exhibitor is to plan your news announcements around our events. The press covering CloudEXPO | DXWorldEXPO will have access to these releases and will amplify your news announcements. More than two dozen Cloud companies either set deals at our shows or have announced their mergers and acquisitions at CloudEXPO. Product announcements during our show provide your company with the most reach through our targeted audienc...
@DevOpsSummit at Cloud Expo, taking place November 12-13 in New York City, NY, is co-located with 22nd international CloudEXPO | first international DXWorldEXPO and will feature technical sessions from a rock star conference faculty and the leading industry players in the world.
With 10 simultaneous tracks, keynotes, general sessions and targeted breakout classes, @CloudEXPO and DXWorldEXPO are two of the most important technology events of the year. Since its launch over eight years ago, @CloudEXPO and DXWorldEXPO have presented a rock star faculty as well as showcased hundreds of sponsors and exhibitors!
DXWorldEXPO LLC announced today that the upcoming DXWorldEXPO | CloudEXPO New York event will feature 10 companies from Poland to participate at the "Poland Digital Transformation Pavilion" on November 12-13, 2018.
Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more business becomes digital the more stakeholders are interested in this data including how it relates to business. Some of these people have never used a monitoring tool before. They have a question on their mind like “How is my application doing” but no id...
22nd International Cloud Expo, taking place June 5-7, 2018, at the Javits Center in New York City, NY, and co-located with the 1st DXWorld Expo will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud ...