Thu, 20 April 2017
We discuss how a lot of big players in tech from the past are now gone, and this trend makes us look closely at the big tech companies today whose growth is slowing, such as Oracle and IBM. They seem to have lost their disruptive edge and struggle with the new business models they compete against, but experience tells us they are definitely survivors. They’re making money around a legacy business that we still live with today, but that is diminishing with the widespread adoption of the cloud. If they do move into the cloud, which they have taken steps towards, it doesn’t necessarily make sense because they would be taking sales from their own legacy technology.
IBM is now reinventing how to work within this new type of model that Microsoft and Amazon have built. IBM is trying to play catch up on the growth of the cloud and figuring out how to make money on it. With Watson and IoT, they are doing fascinating stuff in this space which could launch them into a hybrid cloud model with various customers, but there is no question they are struggling.
We look at how AWS is looking to simplify building and deploying apps on the cloud platform with a new service, AWS CodeStar. This service makes it simpler to set up projects by using templates for web applications, web services, and others. Developers can provision projects and resources from coding to testing to deployment. It seems to be yet another service AWS is providing that Microsoft and Google don’t have, which further solidifies its leadership in cloud computing. Amazon is great at targeting clients at all levels, from large enterprises to capturing the minds and hearts of the tech geeks. With AWS CodeStar, they aim to make it easier for developers to build applications on the cloud. 2017 is the year of the cloud land grab. Each vendor is trying to get as many people onto their platforms as possible, and AWS is trying to convert anyone and everyone.
AWS CodeStar was launched in response to enterprises facing the challenges of agile development software processes. The first challenge for new software is often having a lengthy setup process before they can start coding. The ability to pull this stuff out to the cloud and get up and running quickly is a huge strategic advantage, especially considering enterprises cloud take years to set up processes like these.
When an enterprise decides to switch to agile development or DevOps, there is a huge initial infrastructure setup involved to get the ID setup, the code repository set up with right security, and getting the build and deploy systems created. By Amazon offering this in a box, giving end-to-end solutions including integration with JIRA for bugs, that will be huge for saving time and headaches for clients. It would not be a surprise to see the other cloud vendors start to imitate CodeStar now that AWS has raised the bar.
Amazon has in a way become the new IBM. They are now the 800 pound gorilla that others strive to catch up to. When you look at their total capacity, they have close to fourteen times the data capacity of the next five vendors underneath them. It will be hard to catch up with them. Other vendors often claim to have faster growth than AWS, but that is only because they are playing on smaller fields and AWS is so big there is less room to grow.
Microsoft is now offering Cloud Migration Assessment services, which walk clients through an evaluation of resources they currently use to determine what to move to the cloud and what it will cost to do that. AWS offers a similar tool, and it’s clear that both tools will be used to promote their internal products. It may be a useful tool to determine the cost of migrating to the cloud, but it’s important to remember that everybody’s needs for the cloud are different, so enterprises need to focus on what their particular needs and requirements are.
No technology negates the need for good design and planning, and cloud is no exception. The pricing of moving to the cloud is dependent on how your particular IT is structured. Cross-vendor pricing must be considered also. Your particular configuration will depend on your requirements and what vendors you are piecing together. These tools often underestimate the cost of what the migration will be, they would rarely overestimate the cost.