A recent study from IDC noted that in 2017, infrastructure IT spend for cloud environments is estimated at $41.7 billion. Further, 14.7 percent of that $41.7 billion is to be dedicated to private cloud infrastructure initiatives – that’s about $6 billion, if you were wondering.
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In a recent Red Hat-commissioned study to understand how unified IT management can enable efficiency and operations of heterogeneous IT environments, seven companies utilizing Red Hat CloudForms were interviewed. From these interviews IDC calculated that the companies in question would realize benefits with an average value of $11,937 per 100 users per year over a span of five years. This average value would then result in a return on investment of 436 percent. The companies were able to deliver their returns based on a 92 percent reduction in staff-time per delivery service request, and from this reduction in manual time productivity was increased. How they did it is discussed below:
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The Cloud Age
In the olden days of ‘yore, when anyone wanted a new server they would embark on a ritual that would involve everything from ordering the physical server from a supplier to provisioning the server after installation. This process would involve multiple time-consuming indirect actions, and could take up to months. Have you ever seen one of those American TV ads where some distressed person in an irrational amount of agony is shown as an example of a pain point? Yeah? Well, it was kinda like that.
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According to Gartner, Cloud Computing has been growing at 4.5 times the rate of IT spending each year since 2009. This trend is only expecting to become more exaggerated, as cloud computing is expected to grow at more than six times the rate of IT spend through the year 2020. New trends like containerization and serverless architectures are in essence cloud computing trends, and as the world becomes more connected, users are demanding everything in a software defined way. We expect everything to come to us in the form of IoT applications or services that all need to run in a cloud environment. In fact, the creation of data from IoT devices is increasing more than ever as the cloud continues to expand; By 2025, it is predicted that more than 80 billion IoT devices will be online, creating over 180 zettabytes of data, much of which will be in the cloud. With the ever increasing in popularity of the cloud, comes the needs to define your cloud strategy with flexibility in mind, to meet any new demands.
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A survey conducted by Red Hat among its customer base found that two thirds, or 70 percent, of respondents cited cloud infrastructure to be a top funding priority of 2017. On top of that, 52 percent of organizations stated that cloud strategy will be the main focus of their IT spend in the upcoming year. While it is true that infrastructure can easily be seen as the boring underbelly of IT, it is also true that streamlining and fortifying the foundation of any IT ecosystem via a solid and effective cloud strategy can be crucial to business objectives. An effective cloud strategy involves a few thinking points before one can dig into the work at hand. In the first webinar of a five-part Private Cloud Blog Series, Red Hat’s Stephane Lefrere and Matt Nolan discuss many initial and critically important thinking points in Key Considerations of an Effective Cloud Strategy. Below is a quick recap of the webinar. You also can rewatch it here and sign up for the next ones here.
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