Edition Five
Technology Predictions 2024:
Hybrid Cloud Part 1
The Data Centre: A safe bet.
The debate on which cloud infrastructure is best for the business and realising benefits such as resilience and ROI will continue for C-level tech business decision-makers as 2024 brings new challenges and opportunities for more effective hybrid cloud adoption and overall cloud management.
Three significant challenges underscore the importance of hybrid cloud adoption:
Transformation of Enterprise Applications
The process of transforming enterprise applications is complex and time-consuming.
For many organisations, legacy systems and applications are deeply entrenched, making migration to a purely public cloud environment a daunting task.
Hybrid cloud allows for a gradual transition, ensuring minimal disruption to operations and data integrity.
Escalating costs in the Public Cloud
The reality of high costs associated with public cloud services has led organisations to re-evaluate their cloud strategies.
Hybrid cloud models offer cost optimisation by allowing companies to leverage the public cloud for specific workloads while keeping critical data and applications on-premises or in private clouds.
Shortage of Public Cloud skills
Finding skilled personnel who are proficient in public cloud technologies remains a challenge.
Outsourcing may not be the ideal solution for everyone, given the need for internal expertise in managing critical cloud infrastructure.
Hybrid cloud models enable businesses to maintain control over their data while mitigating the skills gap.
Further considerations for 2024
Multi-cloud management
Waiting for Maturity Multi-cloud management is a concept that has garnered interest but has not yet reached its full potential. The market is still relatively immature, and adoption has been slow.
One potential reason for this delay could be the need for more time for the technology and ecosystem to mature. As organisations explore multi-cloud options, they should keep a watchful eye on developments in these spaces.
Broadcom's impact
The acquisition of Broadcom in November 2023 has raised concerns within the technical community. Some worry that the uncertainty and potential cuts implemented by Broadcom could affect technical development, partnerships, and customer loyalty to VMware solutions.
As a result, organisations may accelerate their transition to alternative hybrid cloud solutions, such as Nutanix and Microsoft. This transition could reshape the hybrid cloud market share landscape.
Optimising Cloud
Public cloud usage is ubiquitous, but many deployments lack proper optimisation and architecture. In 2024, IT teams have an opportunity to revisit their cloud infrastructure, focusing on:
Cost Optimisation: Eliminating redundant, overbuilt, or unused cloud infrastructure
Business Resilience: Prioritising resilience over service-level redundancy
Supply Chain Mitigation: Using cloud infrastructure to mitigate supply chain disruptions
Modernisation: Modernising infrastructure to align with evolving business needs
Adopting principles
Data centres are evolving, with a shift towards platform-based co-location providers and ‘as-a-service' models. This brings cloud-like service-centricity and economic models to on-premises infrastructure.
Characteristics like modularity, scalability, automation, and resilience enable data centre operators to deliver faster, cheaper, and more flexible services.
Gartner predicts
of application workloads will be optimal or ready for cloud delivery by 2027.
of data centre infrastructure will be managed from a cloud-based control plane by 2027.
of enterprise generated data will be processed outside centralised data centres or clouds.
Cutting edge computing
A distributed model that processes and stores data closer to its source, offers numerous advantages. These include reduced latency, bandwidth savings, enhanced performance, improved security, and privacy.
Unstoppable data growth
For the past decade, data growth has consistently surged at an annual rate of 25%. This isn't just a prediction; it's a long-standing reality.
Managing this data explosion requires not only robust infrastructure but also efficient data management strategies. Investing in scalable and adaptable IT solutions will be crucial to harnessing the potential of this ever-expanding data landscape.
Sustainability focus
Clients who now allocate 15-20% of their evaluation criteria to sustainability in tender responses and Data centres, will naturally be under scrutiny in 2024. Being mindful of energy consumption and adopting green IT practices by using vendor solutions on a flexible usage basis can not only reduce costs but also meet the corporate commitment to environmental responsibility.
Server lifecycles
Major tech giants, including Google, Amazon, Microsoft, and Meta, have extended their server refresh lifecycles from 3 years to 5 or 6 years. Beyond the financial benefits, it aligns with sustainability goals by reducing electronic waste. However, this shift may challenge server manufacturers. As decision-makers, evaluating the trade-offs between cost savings and server efficiency will be crucial when determining your organisation's refresh cycles.
Trend: Subscription Consumption Models
A trend towards subscription-based consumption models will continue to gain momentum. Solutions like HPE's GreenLake, Hitachi's Everflex, and Dell's Apex offer flexibility and scalability.
Broadcom's acquisition of VMware signals a shift towards subscription-based offerings, moving away from perpetual licensing. While this may align with the cost-effective nature of OpEx spending, it may pose challenges for sectors still reliant on capex budgets.
Evaluating the financial implications and alignment with your organisation's procurement strategy is essential.
Wait, there's more
Regulatory landscape
Waiting for Maturity Multi-cloud management is a concept that has garnered interest but has not yet reached its full potential. The market is still relatively immature, and adoption has been slow.
Cyber recovery
2024 is to witness a significant change in Cyber and Disaster Recovery (DR) practices.
Traditionally, DR plans were designed to address natural disaster events, but the emerging trend is to bridge the gap between disaster and cyber-attacks.
This evolution will bring about improved recovery speeds for high-volume VM workloads and containers.
Data resiliency
The importance of resiliency, particularly in backup and disaster recovery, remains relevant in 2024.
Recent advancements in security functionality by industry leaders such as Commvault and Veeam have given companies valuable tools to enhance their data protection operations.
Embracing these security features will be crucial as businesses continue to prioritise data security and resilience.
Generative AI
Generative AI is rapidly making its presence felt across various domains, including Copilot, AI in Storage Management systems, and AI in Backup software.
Beyond these applications, generative AI has the potential to revolutionise data centre operations. It can optimise infrastructure, enhance security, and deliver personalised experiences for end-users.
As Gartner predicts, over 80% of enterprises will leverage generative AI by 2026, underscoring the technology's growing significance.