Welcome!

@CloudExpo Authors: Elizabeth White, Zakia Bouachraoui, Liz McMillan, Pat Romanski, Roger Strukhoff

Related Topics: @CloudExpo

@CloudExpo: Blog Feed Post

Amazon, AWS and the Public Cloud Paradox

One respected tech analyst has recently suggested that VMware's hybrid cloud may be too late

When VMware announced its hybrid cloud initiative it made perfect sense.  The hybrid cloud market could provide substantial growth opportunities for VMware, as discussed in VMware Crosses the Rubicon and Hybrid is a Whole New Cloud. Yet one respected tech analyst has recently suggested that VMware’s hybrid cloud may be too late.

Amazon (AMZN) could be the clearest benefactor of the hybrid cloud operating model if it accelerates the enterprise adoption of off premise cloud services, especially if it occurs before VMware (or Microsoft) is ready with an equivalent offering.

As discussed previously, the total addressable market for VMware server virtualization and private cloud is about $50B dollars, per a VMware presentation made late in 2012.  Amazon’s AWS revenues, representing an estimated 90% of the public cloud market, were under $3B.  This suggests a wide gulf between the public cloud and private cloud market and an even larger $60B hybrid cloud market that is available to the victors.

Private cloud is where the money is, because enterprises can get additional agility and efficiency without compromising the premise-grade controls over their IT operations.  The public cloud is also very much a commodity service while the private cloud has a robust assortment of ecosystem services and specializations.  Hybrid cloud is what enterprises want, despite the public and private cloud marketing machines.

Today hybrid cloud is too difficult and solutions too immature.  Yet the promise is so massive that service providers and large enterprises are already evaluating new solutions for devtest agility in the cloud, cloud migration and cloud-enabled disaster recovery in order to increase agility and achieve higher levels of protection and scale without more dedicated hardware.

A broad assortment of established enterprise tech vendors has been making hybrid cloud announcements, despite their inability to integrate customer data centers with clouds. They get it; and they’ve invested in confusing their customers (see, for example my Did You Say Hybrid Cloud? blog).  Yet Amazon on a product level is moving in that hybrid direction while maintaining a public cloud marketing posture, further enabling the confusion that does not benefit their new enterprise sales teams as well as others within the company.

Amazon clearly understands that public IaaS is too limiting, and has made a series of smart improvements to its cloud offerings that align them more closely to enterprise requirements.  It is possible and reasonable to suggest that Amazon’s enhancements (along with Azure’s coming grand entrance) may have forced VMware’s hand into its own IaaS offering, much to the unease of some key VMware partners.  Yet Amazon today is still stuck in the public cloud mindset.  Note, for example, a comment from my Cloud Predictions for 2013:

In 2013 Amazon will acknowledge the hybrid cloud and claim that the hybrid and public clouds are for all intents and purposes identical.  They will be right, yet they will have missed an opportunity to lead on this point in 2012 (see Two Weeks in Vegas) before their new competitors were ready.  Hybrid cloud leadership will be up for grabs as Microsoft, HP, IBM, VMware, Verizon, Rackspace and even Cisco vie for leadership in what could arguable be the largest new tech category in recent memory.

That public cloud myopia on the part of Amazon, which was so prevalent at last year’s AWS reInvent Conference, is an albatross around the neck of what has otherwise been perhaps one of the most successful and revolutionary launches since… online bookselling.  Amazon’s future success may depend more upon its ability to lead the cloud market versus being a former first mover.

 

More Stories By Greg Ness

Gregory Ness is the VP of Marketing of Vidder and has over 30 years of experience in marketing technology, B2B and consumer products and services. Prior to Vidder, he was VP of Marketing at cloud migration pioneer CloudVelox. Before CloudVelox he held marketing leadership positions at Vantage Data Centers, Infoblox (BLOX), BlueLane Technologies (VMW), Redline Networks (JNPR), IntruVert (INTC) and ShoreTel (SHOR). He has a BA from Reed College and an MA from The University of Texas at Austin. He has spoken on virtualization, networking, security and cloud computing topics at numerous conferences including CiscoLive, Interop and Future in Review.

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
The platform combines the strengths of Singtel's extensive, intelligent network capabilities with Microsoft's cloud expertise to create a unique solution that sets new standards for IoT applications," said Mr Diomedes Kastanis, Head of IoT at Singtel. "Our solution provides speed, transparency and flexibility, paving the way for a more pervasive use of IoT to accelerate enterprises' digitalisation efforts. AI-powered intelligent connectivity over Microsoft Azure will be the fastest connected path for IoT innovators to scale globally, and the smartest path to cross-device synergy in an instrumented, connected world.
There are many examples of disruption in consumer space – Uber disrupting the cab industry, Airbnb disrupting the hospitality industry and so on; but have you wondered who is disrupting support and operations? AISERA helps make businesses and customers successful by offering consumer-like user experience for support and operations. We have built the world’s first AI-driven IT / HR / Cloud / Customer Support and Operations solution.
ScaleMP is presenting at CloudEXPO 2019, held June 24-26 in Santa Clara, and we’d love to see you there. At the conference, we’ll demonstrate how ScaleMP is solving one of the most vexing challenges for cloud — memory cost and limit of scale — and how our innovative vSMP MemoryONE solution provides affordable larger server memory for the private and public cloud. Please visit us at Booth No. 519 to connect with our experts and learn more about vSMP MemoryONE and how it is already serving some of the world’s largest data centers. Click here to schedule a meeting with our experts and executives.
Darktrace is the world's leading AI company for cyber security. Created by mathematicians from the University of Cambridge, Darktrace's Enterprise Immune System is the first non-consumer application of machine learning to work at scale, across all network types, from physical, virtualized, and cloud, through to IoT and industrial control systems. Installed as a self-configuring cyber defense platform, Darktrace continuously learns what is ‘normal' for all devices and users, updating its understanding as the environment changes.
Codete accelerates their clients growth through technological expertise and experience. Codite team works with organizations to meet the challenges that digitalization presents. Their clients include digital start-ups as well as established enterprises in the IT industry. To stay competitive in a highly innovative IT industry, strong R&D departments and bold spin-off initiatives is a must. Codete Data Science and Software Architects teams help corporate clients to stay up to date with the modern business digitalization solutions. Achieve up to 50% early-stage technological process development cost cutdown with science and R&D-driven investment strategy with Codete's support.