ChannelVision Magazine May-June 2018

Although centralized datacenters by and large remain the mainstay for the bulk of IT workloads among enterprises, a “slow and steady shift” is taking place away from owning local datacenters and toward removing server closets in favor of hosted solutions, say analysts at 451 Alliance. Well more than half of the respondents to a recent survey by 451, all of which own datacenters/server rooms or use colocation services, report to now utilizing cloud service providers, up markedly from the previous year. Meanwhile, usage of server rooms/closets and local datacenters show signs of gradually decreasing. Smaller organizations, perhaps not surprisingly, have been quickest to embrace public cloud computing because, at least in the near term, it reduces the amount of money they need to invest on company-owned IT infrastructure, show 451 findings. Smaller companies also face less challenges compared to large organizations when it comes to migrating workloads to public cloud environments. “While smaller organizations can often migrate workloads in three months or less, larger organizations can take up to six months or longer, depending on the amount of data and any added complexity of integrating back-end systems into the process,” said Tracy Corbo, senior research manager at 451 Alliance. Even so, larger organizations also are committed to making use of public cloud platforms as a way to reduce cost and improve operational efficiencies, and in turn larger organizations will see a slight decrease in the percentage of workloads running in both centralized and local datacenters, said Corbo. Currently, 71 percent of very large organizations are still operating their own datacenters, but their usage of cloud service is nearly on par, at 69 percent. Among very large organizations, meanwhile, more than half (52 percent) have migrated workloads from their own datacenters to cloud service providers during the past 12 months. And while respondents that are currently running the bulk of their workloads using cloud service providers tend to come from smaller organizations, in the coming year, 451 expects larger organizations will be moving a greater number of workloads to the public cloud. Which of the following IT environments are in use to support your organization? 2018 2017 We own and operate server rooms and/or server closets 59% 61% We utilize cloud service providers 58% 53% We own and operate datacenter facilities 45% 49% We rent space at colocation providers 35% 33% We outsource datacenters to third-party MSPs or outsourcers 16% 17% Source: 451 Alliance Cost and security top the list as being the most influential factors when it comes to the primary location for a workload. Compliance is more of an issue for very large organizations, while performance is more of a concern for smaller organizations. Public Cloud Taking Hold Martin Vilaboy Editor-in-Chief martin@bekabusinessmedia.com Tara Seals Contributing Editor tara@bekapublishing.com Percy Zamora Art Director percy@bekabusinessmedia.com Berge Kaprelian Group Publisher berge@bekabusinessmedia.com (480) 503-0770 Rene Galan Associate Publisher rene@bekabusinessmedia.com (901) 729-6556 Anthony Graffeo Associate Publisher anthony@bekabusinessmedia.com (203) 304-8547 Beka Business Media Berge Kaprelian President and CEO Neil Ende General Counsel Corporate Headquarters 15560 N Frank Lloyd Wright Blvd Suite B4 – 5433 Scottsdale, AZ 85260 Voice: 480.503.0770 Fax: 480.503.0990 Email: berge@bekabusinessmedia.com © 2018 Beka Business Media, All rights reserved. Reproduction in whole or in any form or medium without express written permission of Beka Business Media is prohibited. ChannelVision and the ChannelVision logo are trademarks of Beka Business Media LETTER 6 Channel Vision | May - June, 2018

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