Momentum in the Cloud: Crafting Your Winning Strategy with VMware Cloud

Momentum in the Cloud: Crafting Your Winning Strategy with VMware Cloud

The time is right for VMware Cloud! In the rapidly evolving landscape of modern business, embracing the cloud has become essential for organizations seeking to stay competitive and agile. The allure of increased scalability, cost-efficiency, and flexibility has driven enterprises of all sizes to embark on cloud migration journeys. However, the road to a successful cloud adoption is often coming with challenges. Slow and failed migrations have given rise to what experts call the “cloud paradox,” where the very technology meant to accelerate progress ends up hindering it.

As businesses navigate through this paradox, finding the right strategy to harness the full potential of the cloud becomes paramount. One solution that has emerged as a beacon of hope in this complex landscape is VMware Cloud. With its multi-cloud approach, which is also known as supercloud, VMware Cloud provides organizations the ability to craft a winning strategy that capitalizes on momentum while minimizing the risks associated with cloud migrations.

The Experimental Phase is Over

Is it really though? The experimental phase was an exciting journey of discovery for organizations seeking the potential of multi-cloud environments. Companies have explored different cloud providers, tested a variety of cloud services, and experimented with workloads and applications in the cloud. It allowed them to understand the benefits and drawbacks of each cloud platform, assess performance, security and compliance aspects, and determine how well each cloud provider aligns with their unique business needs.

The Paradox of Cloud and Choice

With an abundance of cloud service providers, each offering distinct features and capabilities, decision-makers can find themselves overwhelmed with options. The quest to optimize workloads across multiple clouds can lead to unintended complexities, such as increased operational overhead, inconsistent management practices/tools, and potential vendor lock-in.

Furthermore, managing data and applications distributed across various cloud environments can create challenges related to security, compliance, and data sovereignty. The lack of standardized practices and tools in a multi-cloud setup can also hinder collaboration and agility, negating the very advantages that public cloud environments promise to deliver.

Multi-Cloud Complexity

(Public) Cloud computing is often preached for its cost-efficiency, enabling businesses to pay for resources on-demand and avoid capital expenditures on physical infrastructure. However, the cloud paradox reveals that organizations can inadvertently accumulate hidden costs, such as data egress fees, storage overage charges, and the cost of cloud management tools. Without careful planning and oversight, the cloud’s financial benefits might be offset by unexpected expenses.

Why Cloud Migrations are Slowing Down

Failed expectations. The first reasons my customers mention are cost and complexity.

While the cloud offers potential cost savings in the long run, the initial investment and perceived uncertainty in calculating the total cost of ownership can deter some organizations from moving forward with cloud migrations. Budget constraints and difficulties in accurately estimating and analyzing cloud expenses lead to a cautious approach to cloud adoption.

One significant factor impeding cloud migrations is the complexity of the process itself. Moving entire infrastructures, applications, and data to the cloud requires thorough planning, precise execution, and in-depth knowledge of cloud platforms and technologies. Many organizations lack the in-house expertise to handle such a massive undertaking, leading to delays and apprehensions about potential risks.

Other underestimated reasons are legacy systems and applications that have been in use for many years and are often deeply ingrained within an organization’s operations. Migrating these systems to the cloud may require extensive reconfiguration or complete redevelopment, making the migration process both time-consuming and resource-intensive.

Reverse Cloud Migrations

While I don’t advertise a case for repatriation, I would like to share the idea that companies should think about workload mobility, application portability, and repatriation upfront. You can infinitely optimize your cloud spend, but if cloud costs start to outpace your transformation plans or revenue growth, it is too late already.

Embracing a Smart Approach with VMware Cloud

To address the cloud paradox and maximize the potential of multi-cloud environments, VMware is embracing the cloud-smart approach. This approach is designed to empower organizations with a unified and consistent platform to manage and operate their applications across multiple clouds.

VMware Cloud-Smart

  • Single Cloud Operating Model: A single operating model that spans private and public clouds. This consistency simplifies cloud management, enabling seamless workload migration and minimizing the complexities associated with multiple cloud providers.
  • Flexible Cloud Choice: VMware allows organizations to choose the cloud provider that best suits their specific needs, whether it is a public cloud or a private cloud infrastructure. This freedom of choice ensures that businesses can leverage the unique advantages of each cloud while maintaining operational consistency.
  • Streamlined Application Management: A cloud-smart approach centralizes application management, making it easier to deploy, secure, and monitor applications across multi-cloud environments. This streamlines processes, enhances collaboration, and improves operational efficiency.
  • Enhanced Security and Compliance: By adopting VMware’s security solutions, businesses can implement consistent security policies across all clouds, ensuring data protection and compliance adherence regardless of the cloud provider.

Why VMware Cloud?

This year I realized that a lot of VMware customers came back to me because their cloud-first strategy did not work as expected. Costs exploded, migrations were failing, and their project timeline changed many times. Also, partners like Microsoft and AWS want to collaborate more with VMware, because the public cloud giants cannot deliver as expected.

Customers and public cloud providers did not see any value in lifting and shifting workloads from on-premises data centers to the public. Now the exact same people, companies and partners (AWS, Microsoft, Google, Oracle etc.) are back to ask for VMware their support, and solutions that can speed up cloud migrations while reducing risks.

This is why I am always suggesting a “lift and learn” approach, which removes pressure and reduces costs.

Organizations view the public cloud as a highly strategic platform for digital transformation. Gartner forecasted in April 2023 that Infrastructure-as-a-Service (IaaS) is going to experience the highest spending growth in 2023, followed by PaaS.

It is said that companies spend most of their money for compute, storage, and data services when using Google Cloud, AWS, and Microsoft Azure. Guess what, VMware Cloud is a perfect fit for IaaS-based workloads (instead of using AWS EC2, Google’s Compute Engine, and Azure Virtual machine instances)!

Who doesn’t like the idea of cost savings and faster cloud migrations?

Disaster Recovery and FinOps

When you migrate workloads to the cloud, you have to rethink your disaster recovery and ransomware recovery strategy. Have a look at VMware’s DRaaS (Disaster-Recovery-as-a-Service) offering which includes ransomware recovery capabilities as well. 

If you want to analyze and optimize your cloud spend, try out VMware Aria Cost powered by CloudHealth.

Final Words

VMware’s approach is not right for everyone, but it is a future-proof cloud strategy that enables organizations to adapt their cloud strategies as business needs to evolve. The cloud-smart approach offers a compelling solution, providing businesses with a unified, consistent, and flexible platform to succeed in multi-cloud environments. By embracing this approach, organizations can overcome the complexities of multi-cloud, unlock new possibilities, and set themselves on a path to cloud success.

And you still get the same access to the native public cloud services.

 

 

Supercloud – A Hybrid Multi-Cloud

Supercloud – A Hybrid Multi-Cloud

I thought it is time to finally write a piece about superclouds. Call it supercloud, the new multi-cloud, a hybrid multi-cloud, cross-cloud, or a metacloud. New terms with the same meaning. I may be biased but I am convinced that VMware is in the pole position for this new architecture and approach.

Let me also tell you this: superclouds are nothing new. Some of you believe that the idea of a supercloud is something new, something modern. Some of you may also think that cross-cloud services, workload mobility, application portability, and data gravity are new complex topics of the “modern world” that need to be discussed or solved in 2023 and beyond. Guess what, most of these challenges and ideas exist for more than 10 years already!

Cloud-First is not cool anymore

There is clear evidence that a cloud-first approach is not cool or the ideal approach anymore. Do you remember about a dozen years ago when analysts believed that local data centers are going to disappear and the IT landscape would only consist of public clouds aka hyperscalers? Have a look at this timeline:

VMware and Public Clouds Timeline

We can clearly see when public clouds like AWS, Google Cloud, and Microsoft Azure appeared on the surface. A few years later, the world realized that the future is hybrid or multi-cloud. In 2019, AWS launched “Outposts”, Microsoft made Azure Arc and their on-premises Kubernetes offering available only a few years later.

Google, AWS, and Microsoft changed their messaging from “we are the best, we are the only cloud” to “okay, the future is multi-cloud, we also have something for you now”. Consistent infrastructure and consistent operations became almost everyone’s marketing slogan.

As you can also see above, VMware announced their hybrid cloud offering “VMware Cloud on AWS” in 2016, the initial availability came a year after, and since 2018 it is generally available.

From Internet to Interclouds

Before someone coined the term “supercloud”, people were talking about the need for an “intercloud”. In 2010, Vint Cerf, the so-called “Father of the Internet” shared his opinions and predictions on the future of cloud computing. He was talking about the potential need and importance of interconnecting different clouds.

Cerf already understood about 13 years ago, that there’s a need for an intercloud because users should be able to move data/workloads from one cloud to another (e.g., from AWS to Azure to GCP). He was guessing back then that the intercloud problem could be solved around 2015.

We’re at the same point now in 2010 as we were in ’73 with internet.

In short, Vint Cerf understood that the future is multi-cloud and that interoperability standards are key.

There is also a document that also delivers proof that NIST had a working group (IEEE P2302) trying to develop “the Standard for Intercloud Interoperability and Federation (SIIF)”. This was around 2011. How did the suggestion back then look like? I found this youtube video a few years ago with the following sketch:

Intercloud 2012

Workload Mobility and Application Portability

As we can see above, VM or workload mobility was already part of this high-level architecture from the IEEE working group. I also found a paper from NIST called “Cloud Computing Standards Roadmap” dated July 2013 with very interesting sections:

Cloud platforms should make it possible to securely and efficiently move data in, out, and among cloud providers and to make it possible to port applications from one cloud platform to another. Data may be transient or persistent, structured or unstructured and may be stored in a file system, cache, relational or non-relational database. Cloud interoperability means that data can be processed by different services on different cloud systems through common specifications. Cloud portability means that data can be moved from one cloud system to another and that applications can be ported and run on different cloud systems at an acceptable cost.

Note: VMware HCX is available since 2018 and is still the easiest and probably the most cost-efficient way to migrate workloads from one cloud to another.

It is all about the money

Imagine it is March 2014, and you read the following announcement: Cisco is going big – they want to spend $1 billion on the creation of an intercloud

Yes, that really happened. Details can be found in the New York Times Archive. The New York Times even mentioned at the end of their article that “it’s clear that cloud computing has become a very big money game”.

In Cisco’s announcement, money had also been mentioned:

Of course, we believe this is going to be good for business. We expect to expand the addressable cloud market for Cisco and our partners from $22Bn to $88Bn between 2013-2017.

In 2016, Cisco retired their intercloud offering, because AWS and Microsoft were, and still are, very dominant. AWS posted $12.2 billion in sales for 2016, Microsoft ended up almost at $3 billion in revenue with Azure.

Remember Cisco’s estimate about the “addressable cloud market”? In 2018, Gartner presented the number of $145B for the worldwide public cloud spend in 2017. For 2023, Gartner forecasted a cloud spend of almost $600 billion.

Data Gravity and Egress Costs

Another topic I want to highlight is “data gravity” coined by Dave McCrory in 2010:

Consider Data as if it were a Planet or other object with sufficient mass. As Data accumulates (builds mass) there is a greater likelihood that additional Services and Applications will be attracted to this data. This is the same effect Gravity has on objects around a planet. As the mass or density increases, so does the strength of gravitational pull. As things get closer to the mass, they accelerate toward the mass at an increasingly faster velocity. Relating this analogy to Data is what is pictured below.

Put data gravity together with egress costs, then one realizes that data gravity and egress costs limit mobility and/or portability discussions:

Source: https://medium.com/@alexandre_43174/the-surprising-truth-about-cloud-egress-costs-d1be3f70d001

By the way, what happened to “economies of scale”?

The Cloud Paradox

As you should understand by now topics like costs, lock-in, and failed expectations (technically and commercially) are being discussed for more than a decade already. That is why I highlighted NIST’s sentence above: Cloud portability means that data can be moved from one cloud system to another and that applications can be ported and run on different cloud systems at an acceptable cost.

Acceptable cost.

While the (public) cloud seems to be the right choice for some companies, we now see other scenarios popping up more often: reverse cloud migrations (also called repatriation sometimes)

I have customers who tell me, that the exact same VM with the exact same business logic costs between 5 to 7 times more when they moved it from their private to a public cloud.

Let’s park that and cover the “true costs of cloud” another time. 😀

Public Cloud Services Spend

Looking at Vantage’s report, we can see the following top 10 services on AWS, Azure and GCP ranked by the share of costs:

If they are right and the numbers are true for most enterprises, it means that customers spend most of their money on virtual machines (IaaS), databases, and storage.

What does Gartner say?

Let’s have a look at the most recent forecast called “Worldwide Public Cloud End-User Spending to Reach Nearly $600 Billion in 2023” from April 2023:

Gartner April 2023 Public Cloud Spend Forecast

All segments of the cloud market are expected see growth in 2023. Infrastructure-as-a-service (IaaS) is forecast to experience the highest end-user spending growth in 2023 at 30.9%, followed by platform-as-a-service (PaaS) at 24.1%

Conclusion

If most companies spend around 30% of their budget on virtual machines and Gartner predicts that IaaS is still having a higher growth than SaaS or PaaS, a supercloud architecture for IaaS would make a lot of sense. You would have the same technology format, could use the same networking and security policies, and existing skills, and benefit from many other advantages as well.

Looking at the VMware Cloud approach, which allows you to run VMware’s software-defined data center (SDDC) stack on AWS, Azure, Google, and many other public clouds, customers could create a seamless hybrid multi-cloud architecture – using the same technology across clouds.

Other VMware products that fall under the supercloud category would be Tanzu Application Platform (TAP), the Aria Suite, and Tanzu for Kubernetes Operations (TKO) which belong to VMware’s Cross-Cloud Services portfolio.

Final Words

I think it is important that we understand, that we are still in the early days of multi-cloud (or when we use multiple clouds).

Customers get confused because it took them years to deploy or move new or existing apps to the public cloud. Now, analysts and vendors talk about cloud exit strategies, reverse cloud migrations, repatriations, exploding cloud costs, and so on.

Yes, a supercloud is about a hybrid multi-cloud architecture and a standardized design for building apps and platforms across cloud. But the most important capability, in my opinion, is the fact that it makes your IT landscape future-ready on different levels with different abstraction layers.