Jan-Feb 2020 - ChannelVision Magazine

BUYERS SIDE Capital One is planning to close its last three proprietary data centers in 2020, said George Brady, who leads the bank’s tech strategy. “We are completely all-in on the public cloud, and we’ll exit the last of our data centers next year,” Brady said during a December interview in Las Vegas, where he came to speak at the Gartner IT Infrastructure, Operations & Cloud Strategies conference. The news certainly can be construed as an endorsement for public cloud migration and serves as some salve for channel partners that are faced with security concerns when- ever they suggest cloud computing services to customers and prospects. After all, the move marks the final phase of Capital One’s migra- tion to the cloud, which it has pursued despite a data breach it suffered in late July 2019, that affected 106 million individuals across the U.S and Canada. That breach occurred in the cloud, though the vulnerability that led to it was not specific to the cloud, according to reports. Capital One is ahead of many of its peers when it comes to embracing and implementing cloud technology. As Business Insider notes, banking professionals as a group tend to neither trust nor understand cloud computing. A resound- ing 88 percent of U.S. financial sector profession- als say that they distrust cloud computing, and less than a third (32 percent) say that they under- stand it, per research from Savoy Stewart. Time will tell if Capital One’s early adopter status will enable it to enjoy some of the benefits of cloud computing before its competitors can.  Capital One to Close Remaining Data Centers Not that long ago, running applications directly on physical servers — which often sat mostly idle — was typical in most server rooms around the world. Within the span of a decade, however, use of server virtualization has be- come standard industry practice, as businesses look to improve IT efficiency. According to Spice- works research, server virtualiza- tion is nearly ubiquitous today, used by 92 percent of businesses surveyed by the user group. Other forms of virtualization, meanwhile, have some catching up to do. Among emerging virtualization technologies, the most common is storage virtualization (also called software-defined storage) with a 40 percent adoption rate, followed by application virtualization at 39 percent. Looking forward, Spiceworks research indicates more than half of businesses plan to use stor- age virtualization and application virtualization by 2021. In fact, ap- plication virtualization is expected to experience the most growth among virtualization technolo- gies with adoption expected to grow from 39 percent today to 56 percent by 2021. Spiceworks re- searchers also expect double-digit growth in the use of desktop, data and network virtualization technol- ogies within the next two years. Virtualization Snapshot Computer Economics’ IT maturity analysis compares technologies along two parameters (current investment rate and adoption rate) in order to assess how widely a technology is deployed as well as how many organizations are currently investing in that technology. Business Adoption of Virtualization Technology Source: Spiceworks HUMAN LATENCY SENSITIVE ous Cars • Web Site Optimization • Augmented Reality • Smart Retail • Natur l L nguage Processing 5% 92% 12% 40% 17% 39% 12% 32% 10% 30% 14% 30% Server virtualization Storage virtualization Application virtualization Desktop virtualization Data virtualization Network virtualization Currently using Planning to use within 2 years Technology Maturity Analysis rcentage Currently Investing High Investment/ Low Adoption 1. Security Technology 2. SaaS 3. Business and Data Analytics 4. ERP 5. CRM 6. Human Capital Mgmt 7. Mobile Applications 8. Mobile Devices/Wearables 9. IaaS 10. E-commerce 11. Supply Chain Management 12. Enterprise Asset Management High Investment/ High Adoption 1 3 2 4 5 10 6 8 11 7 9 Source: CPAnalytics; Capital IQ 1 Telco operators within the top 20 p 2 Telco operators within the bottom 3 Telco calculated as the median wit 4 Percentage point. What is your bi Percentage of IT Budg Source: Ponemon Institute 40% 35% 30% 25% 20% 15% 10% 5% 0% 36.0% 36.3% Percentage of IT personn security oper Employee passw stolen or co Emplo wea Time spent resettin Changing passwor employee lea Employe of be Agree Business Adoption of Virtualization Technology Source: Spiceworks MACHINE TO MACHINE LATENCY SENSITIVE LIFE CRITICAL HUMAN LATENCY SENSITIVE mart Security mart Grid ow-Latency Content Dist. rbitrage Market eal-time Analytics efense Force Simulation • Digital Health • Co nected/Aut nomous Cars • Drones • Smart Transportation • Autonomous Robots • Web Site Optimization • Augmented Reality • Smart Retail • Natural Language Processing 79% 70% 73% 72% 71% 55% 66% 51% 68% 69% 52% 56% 50% 27% 5% 92% 12% 40% 17% 39% 12% 32% 10% 30% 14% 30% Server virtualization Storage virtualization Application virtualization Desktop virtualization Data virtualization Network virtualization Currently using Planning to use within 2 years Technology Maturity Analysis Source: Computer Economics Percentage Currently Investing Percentage with Technology in Place High Investment/ Low Adoption 1. Security Technology 2. SaaS 3. Business and Data Analytics 4. ERP 5. CRM 6. Human Capital Mgmt 7. Mobile Applications 8. Mobile Devices/Wearables 9. IaaS 10. E-commerce 11. Supply Chain Management 12. Enterprise Asset Management 13. Internet of Things 14. Artificial Intelligence 15. Robotic Process Automation Low Investment/ Low Adoption Low Investment/ High Adoption High Investment/ High Adoption 1 3 2 4 5 10 6 8 11 12 13 14 15 7 9 Tech’s Relative Maturity 36 CHANNEL VISION | January - February, 2020