Welcome!

@CloudExpo Authors: Progress Blog, Pat Romanski, LeanTaaS Blog, Kevin Benedict, Don MacVittie

Related Topics: @CloudExpo, Microservices Expo, Containers Expo Blog, Cloud Security, SDN Journal

@CloudExpo: Blog Post

The Purely Public Cloud Deployment: The Perceived Risk

Can't the hybrid economy model live within the public cloud?

In this post , I will raise some basic questions and will delve deeply into this topic to debate the common resistance to what I call "pure cloud deployment". Let's begin with a leading question: Can't the hybrid economy model live within the public cloud? From the enormous number of conversations with top cloud thought leaders, CIOs, startups, and the like, it seems that the answer is Yes.

I started my journey in the technology world only 10 years ago. I started establishing an online cloud and SaaS solution for the SMB, and 6 years later I was exposed to the great wonderful world of enterprise IT factory. I experienced and documented the challenge of moving the multi-million dollar IT shop to AWS cloud. I also supported and kept records on projects of enterprises and ISVs that moved resources from their on-premise applications to the Amazon cloud, beginning with their initial integration and continual maintenance all the way to the education and implementation of the cloud pay-as-you-go and on-demand models. In my journey, I saw how Salesforce grows like crazy and how its ecosystem mushrooms along with it. I've closely followed Amazon's every step of building the AWS cloud, which, without a doubt, has been a revolution from IT markets.

"Did you hear about the Netflix down time last Christmas?" That is one of the most common questions I hear when it comes to discussing using only the public cloud (the Netflix case). There is never a question about the loss Netflix suffered from around 20 hours of downtime.

"By 2012 the (Netflix) cloud capacity has grown to be order-of-magnitude 10,000 instances, ten times the capacity of the datacenter, running in nine AWS Availability zones (effectively separate datacenters) on the US East and West coast, and in Europe. A handful of DevOps engineers working for Carl Quinn (@cquinn - well known from the Java Posse podcast) are coding and running the build tools and bakery, and updating the base AMI from time to time." Read More by @adrianco

If Netflix had more control on their cloud, could they do better or at least bring their services back online faster? In the case of "better control", is it plausible that they could build a scale and manage such an amazing capacity of resources? For this, we have to consider the benefits vs. risks.

"With a hybrid cloud, you as the user get to control the balance between CAPEX and OPEX. With a public cloud (like AWS), the entire expense is OPEX." @martenmickos (via email)

Isn't it more attractive for today's IT leader's total expenses and steady capacity to be OPEX? It is more logical for a budget to go out when it has a confirmed, direct ROI and won't suffer from precarious planning.  This brings us back to the reason why past traditional projects failed.

"What you can never have to 100% in a public cloud is control. If you need full control, you must operate your own cloud. I mean financial control, technical control, access control, data control, compliance control, roadmap control, control over rules and governance, and so on. That's why I think there will always be a need for private clouds." @martenmickos (via email)

This list of features for control is very important and each needs to be considered separately. It seems like the private cloud is all about the IT FUD level, which makes sense since losing data or having downtime are serious factors when deciding a cloud enterprise or IT strategy.

Risk Perception
Risk perception
is the subjective judgment about the characteristics and severity of risk. The perception of risk is decreased if the risk is chosen voluntarily. Even though the risks might be similar, the voluntarily chosen risk is accepted far more often than the imposed one. Accordingly, people tend to accept risks that are voluntarily (on-premise IT) chosen even if those risks are approximately 1000 times more risky than accepted involuntary risks (public cloud). Wikipedia

Don't you think that AWS, or any of the public cloud's leading trio can take responsibility while improving and providing better services over time? Isn't it more strategic?  It seems like Amazon's $600M contract with the CIA made them become more fond of with the phrase, "Private Cloud", it just wasn't necessarily how they, themselves relate to it.

"I asked AWS if it's currently building private clouds for customers and if it's building data centers outside of the U.S. designed for use by government agencies...  It notes that GovCloud and FinQloud are examples of "community clouds" that AWS may build for groups or organizations that have specific requirements." Read Moreby @ngohring

Controllability
Similar to the voluntary choice aspect mentioned above, outages or data loss risks that are perceived to be under one`s control are also greater accepted than those controlled by the public cloud vendors (involuntary choice). Typical human behavior tends not to enter "out of control" situations because there is a lack of security under such circumstances. Veteran IT leaders have already experienced a situation that created a feeling of powerlessness and helplessness, and would not want to live through it again. Although they recognize the cloud, these leaders still "suffer" from the impression that as long as their administrators maintain control they can remedy the potential risk.

"What strikes me when I read of the cloud contracting deals, and proposed private clouds is just how little those who are defining the specifications for "private cloud" seem to understand about why the business segment moved so decisively to AWS.

IT on the other hand does not excel at this, and in my opinion this variance experienced by business customers when working with Corporate IT is what pushes them "to the Cloud" against any logical argument Corporate IT can make that they would have "more control" in the datacenter." @BrianMcCallion on a comment on@gigabarb post, Amazon winner in a federal cloud scrum

However, that perceived control over the IT environment isn't necessarily real control. Social psychological studies have shown that we tend to overestimate our capability to control a situation. Research shows that personal risk is perceived as being far lower than risk for people in general. This is statistically impossible and reflects an unrealistic optimism. No IT leader can deliver an "outage free data center" and most chances that the public cloud vendors can do better under.

There is more to risk perception and controllability than what I have noted in this post, including, "the greater people perceive a benefit, the greater tolerance can be built for risk". The benefits that an enterprise IT can gain from using the public cloud are important in order to actually eliminate traditional IT risks. If IT really understands the values of the cloud and doesn't view it as, "just another hosting platform", they are capable of understanding that while it is very important, security deployment will always come second.

Having said that, do you really think that you understand what is "private cloud"? Is it a better investment to build your enterprise cloud from the ground up?

This post was originally posted on iamondemand.com

More Stories By Ofir Nachmani

Ofir Nachmani is a Cloud Computing Evangelist, Blogger and Lecturer at IAmOnDemand.com. He has extensive experience helping ISV companies with cloud adoption and management. Today, Ofir is a Senior Vice President and Chief Evangelist at Newvem Analytics Ltd. Prior to these he led ClickSoftware’s On-Demand initiative and established the company cloud offering. On his previous adventure, he led ClickSoftware’s On-Demand (SaaS) initiative and also held several positions at Zarathustra SaaS development VP of product and company CEO. In 2009, ClickSoftware acquired the AST group and Zarathustra as part of it. Twitter: @iamondemand

@CloudExpo Stories
Mobile device usage has increased exponentially during the past several years, as consumers rely on handhelds for everything from news and weather to banking and purchases. What can we expect in the next few years? The way in which we interact with our devices will fundamentally change, as businesses leverage Artificial Intelligence. We already see this taking shape as businesses leverage AI for cost savings and customer responsiveness. This trend will continue, as AI is used for more sophistica...
Nordstrom is transforming the way that they do business and the cloud is the key to enabling speed and hyper personalized customer experiences. In his session at 21st Cloud Expo, Ken Schow, VP of Engineering at Nordstrom, discussed some of the key learnings and common pitfalls of large enterprises moving to the cloud. This includes strategies around choosing a cloud provider(s), architecture, and lessons learned. In addition, he covered some of the best practices for structured team migration an...
Most technology leaders, contemporary and from the hardware era, are reshaping their businesses to do software. They hope to capture value from emerging technologies such as IoT, SDN, and AI. Ultimately, irrespective of the vertical, it is about deriving value from independent software applications participating in an ecosystem as one comprehensive solution. In his session at @ThingsExpo, Kausik Sridhar, founder and CTO of Pulzze Systems, discussed how given the magnitude of today's application ...
In his session at 21st Cloud Expo, Raju Shreewastava, founder of Big Data Trunk, provided a fun and simple way to introduce Machine Leaning to anyone and everyone. He solved a machine learning problem and demonstrated an easy way to be able to do machine learning without even coding. Raju Shreewastava is the founder of Big Data Trunk (www.BigDataTrunk.com), a Big Data Training and consulting firm with offices in the United States. He previously led the data warehouse/business intelligence and B...
The “Digital Era” is forcing us to engage with new methods to build, operate and maintain applications. This transformation also implies an evolution to more and more intelligent applications to better engage with the customers, while creating significant market differentiators. In both cases, the cloud has become a key enabler to embrace this digital revolution. So, moving to the cloud is no longer the question; the new questions are HOW and WHEN. To make this equation even more complex, most ...
As you move to the cloud, your network should be efficient, secure, and easy to manage. An enterprise adopting a hybrid or public cloud needs systems and tools that provide: Agility: ability to deliver applications and services faster, even in complex hybrid environments Easier manageability: enable reliable connectivity with complete oversight as the data center network evolves Greater efficiency: eliminate wasted effort while reducing errors and optimize asset utilization Security: imple...
In his Opening Keynote at 21st Cloud Expo, John Considine, General Manager of IBM Cloud Infrastructure, led attendees through the exciting evolution of the cloud. He looked at this major disruption from the perspective of technology, business models, and what this means for enterprises of all sizes. John Considine is General Manager of Cloud Infrastructure Services at IBM. In that role he is responsible for leading IBM’s public cloud infrastructure including strategy, development, and offering m...
With tough new regulations coming to Europe on data privacy in May 2018, Calligo will explain why in reality the effect is global and transforms how you consider critical data. EU GDPR fundamentally rewrites the rules for cloud, Big Data and IoT. In his session at 21st Cloud Expo, Adam Ryan, Vice President and General Manager EMEA at Calligo, examined the regulations and provided insight on how it affects technology, challenges the established rules and will usher in new levels of diligence arou...
The past few years have brought a sea change in the way applications are architected, developed, and consumed—increasing both the complexity of testing and the business impact of software failures. How can software testing professionals keep pace with modern application delivery, given the trends that impact both architectures (cloud, microservices, and APIs) and processes (DevOps, agile, and continuous delivery)? This is where continuous testing comes in. D
Modern software design has fundamentally changed how we manage applications, causing many to turn to containers as the new virtual machine for resource management. As container adoption grows beyond stateless applications to stateful workloads, the need for persistent storage is foundational - something customers routinely cite as a top pain point. In his session at @DevOpsSummit at 21st Cloud Expo, Bill Borsari, Head of Systems Engineering at Datera, explored how organizations can reap the bene...
Digital transformation is about embracing digital technologies into a company's culture to better connect with its customers, automate processes, create better tools, enter new markets, etc. Such a transformation requires continuous orchestration across teams and an environment based on open collaboration and daily experiments. In his session at 21st Cloud Expo, Alex Casalboni, Technical (Cloud) Evangelist at Cloud Academy, explored and discussed the most urgent unsolved challenges to achieve f...
The dynamic nature of the cloud means that change is a constant when it comes to modern cloud-based infrastructure. Delivering modern applications to end users, therefore, is a constantly shifting challenge. Delivery automation helps IT Ops teams ensure that apps are providing an optimal end user experience over hybrid-cloud and multi-cloud environments, no matter what the current state of the infrastructure is. To employ a delivery automation strategy that reflects your business rules, making r...
The 22nd International Cloud Expo | 1st DXWorld Expo has announced that its Call for Papers is open. Cloud Expo | DXWorld Expo, to be held June 5-7, 2018, at the Javits Center in New York, NY, brings together Cloud Computing, Digital Transformation, Big Data, Internet of Things, DevOps, Machine Learning and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding busin...
In a recent survey, Sumo Logic surveyed 1,500 customers who employ cloud services such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP). According to the survey, a quarter of the respondents have already deployed Docker containers and nearly as many (23 percent) are employing the AWS Lambda serverless computing framework. It’s clear: serverless is here to stay. The adoption does come with some needed changes, within both application development and operations. Tha...
SYS-CON Events announced today that Synametrics Technologies will exhibit at SYS-CON's 22nd International Cloud Expo®, which will take place on June 5-7, 2018, at the Javits Center in New York, NY. Synametrics Technologies is a privately held company based in Plainsboro, New Jersey that has been providing solutions for the developer community since 1997. Based on the success of its initial product offerings such as WinSQL, Xeams, SynaMan and Syncrify, Synametrics continues to create and hone in...
Smart cities have the potential to change our lives at so many levels for citizens: less pollution, reduced parking obstacles, better health, education and more energy savings. Real-time data streaming and the Internet of Things (IoT) possess the power to turn this vision into a reality. However, most organizations today are building their data infrastructure to focus solely on addressing immediate business needs vs. a platform capable of quickly adapting emerging technologies to address future ...
In his general session at 21st Cloud Expo, Greg Dumas, Calligo’s Vice President and G.M. of US operations, discussed the new Global Data Protection Regulation and how Calligo can help business stay compliant in digitally globalized world. Greg Dumas is Calligo's Vice President and G.M. of US operations. Calligo is an established service provider that provides an innovative platform for trusted cloud solutions. Calligo’s customers are typically most concerned about GDPR compliance, application p...
Kubernetes is an open source system for automating deployment, scaling, and management of containerized applications. Kubernetes was originally built by Google, leveraging years of experience with managing container workloads, and is now a Cloud Native Compute Foundation (CNCF) project. Kubernetes has been widely adopted by the community, supported on all major public and private cloud providers, and is gaining rapid adoption in enterprises. However, Kubernetes may seem intimidating and complex ...
In his session at 21st Cloud Expo, Michael Burley, a Senior Business Development Executive in IT Services at NetApp, described how NetApp designed a three-year program of work to migrate 25PB of a major telco's enterprise data to a new STaaS platform, and then secured a long-term contract to manage and operate the platform. This significant program blended the best of NetApp’s solutions and services capabilities to enable this telco’s successful adoption of private cloud storage and launching ...
You know you need the cloud, but you’re hesitant to simply dump everything at Amazon since you know that not all workloads are suitable for cloud. You know that you want the kind of ease of use and scalability that you get with public cloud, but your applications are architected in a way that makes the public cloud a non-starter. You’re looking at private cloud solutions based on hyperconverged infrastructure, but you’re concerned with the limits inherent in those technologies.