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    The Future of Hybrid Cloud: Fight, Ally or Exit: by Mark Brinda, Bill Radzevych and Jani Kelloniemi

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    The document discusses different definitions of hybrid cloud and finds that while CIOs say they want multicloud, in reality most rely on a single cloud provider due to complexity. It argues that the near-term focus for hybrid cloud should be the link between on-premise and public cloud systems and extending cloud to edge computing, not full multicloud.

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    The Future of Hybrid Cloud: Fight, Ally or Exit: by Mark Brinda, Bill Radzevych and Jani Kelloniemi

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    chemicalchouhan9303
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    The document discusses different definitions of hybrid cloud and finds that while CIOs say they want multicloud, in reality most rely on a single cloud provider due to complexity. It argues that the near-term focus for hybrid cloud should be the link between on-premise and public cloud systems and extending cloud to edge computing, not full multicloud.

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    “Cloud-to-edge” hybrid20

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    The document discusses different definitions of hybrid cloud and finds that while CIOs say they want multicloud, in reality most rely on a single cloud provider due to complexity. It argues that the near-term focus for hybrid cloud should be the link between on-premise and public cloud systems and extending cloud to edge computing, not full multicloud.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    3 views3 pages

    The Future of Hybrid Cloud: Fight, Ally or Exit: by Mark Brinda, Bill Radzevych and Jani Kelloniemi

    Uploaded by

    chemicalchouhan9303
    The document discusses different definitions of hybrid cloud and finds that while CIOs say they want multicloud, in reality most rely on a single cloud provider due to complexity. It argues that the near-term focus for hybrid cloud should be the link between on-premise and public cloud systems and extending cloud to edge computing, not full multicloud.

    Copyright:

    © All Rights Reserved
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    Download as pdf or txt
    of 3

    The Future of Hybrid Cloud:

    Fight, Ally or Exit


    Cloud service providers are shaping the sector,
    but their ecosystems will create roles for many.

    By Mark Brinda, Bill Radzevych and Jani Kelloniemi


    If you talk to a CIO, you’re likely to come away thinking that the hybrid cloud is one of the most critical
    areas of investment that will define their IT strategy over the next decade. But what does hybrid cloud
    actually mean?

    A lot of the current focus and energy in the market revolves around three related but distinct hybrid
    cloud value propositions: the ability to seamlessly integrate cloud infrastructure from multiple vendors,
    to move workloads and data between on-premise systems and a public cloud, and to extend cloud
    capabilities to edge computing environments.

    If you listen to cloud providers, you’ll hear a lot about multicloud and edge. The truth is that today’s
    hybrid cloud deployments focus mainly on the simpler and more practical need: applying public
    cloud resources to legacy data and applications.

    The multicloud value proposition is more a dream than a reality at this point. Two out of three CIOs
    indicate they plan to use multiple public cloud infrastructure providers to avoid vendor lock-in and
    control costs, according to Bain & Company’s Covid-19 IT Buyer Survey. However, when we look at
    actual spending, very few companies have succeeded in doing so. Companies use many clouds when
    it comes to their software-as-a-service applications. But looking just at their computing infrastruc-
    ture—which is most relevant to hybrid cloud purchase decisions—more than 70% of companies are
    using only one provider. Those who do use multiple public clouds spend more than 90% of their
    public cloud budget with a single vendor (see Figure 14).

    Figure 14: CIOs say they want to use multiple public clouds, but most rely on a single vendor

    Two-thirds of CIOs claim an intent to use Despite multicloud growth, 71% Even for companies with multiple
    multiple clouds at scale of companies use one cloud vendors, more than 90% of public
    cloud spending goes to one
    provider
    Percentage of CIOs who do or don't plan Percentage of companies
    to use more than one public cloud, and why
    Yes, other reason
    100% 100%
    Yes, for better regional coverage Multicloud Other vendors
    Yes, to use the latest innovations across providers customers
    80 Yes, to capitalize on potential 80
    price differences among vendors
    60 60
    Yes, to avoid vendor lock-in
    Single-cloud Primary vendor
    40 40 customers

    No, I plan to rely on a single public cloud provider


    20 20
    No, I plan to rely on a single public cloud provider
    and experiment with others
    0 0
    2017 2020 Multicloud customer spending
    Sources: Bain Covid-19 IT Buyer surveys, 2020 (n=200 April 6-8, n=159 May 4-6, n=132 July 6-7); spending and utilization data provided by 7Park Data

    Section 2 | The Future of Hybrid Cloud: Fight, Ally or Exit | 37


    Why the discrepancy between desire and reality?

    First, the average company uses 53 cloud platform services that go beyond basic computing and storage.
    These services support products in artificial intelligence (AI), mobility services, augmented reality (AR),
    virtual reality (VR) and more. This makes it nearly impossible to seamlessly migrate an application
    from one infrastructure provider to another, as the application will call on a platform service that isn’t
    there. Second, the complexity of operating across multiple public clouds creates security and downtime
    risks. Third, companies are struggling to develop, hire and retain the talent to operate one cloud infra-
    structure environment at scale, let alone several. Lastly, the differentiation across the current public
    clouds is just not significant enough to offset all of these challenges.

    The other two hybrid cloud value propositions are more real.

    The link between on-premise infrastructure and the public cloud is crucial to many companies’ IT
    operations today. Many CIOs currently rely on this link to modernize legacy systems with advanced
    cloud services, to provide backup and disaster recovery capabilities, or to gain extra computing capac-
    ity during periods of peak usage. It’s challenging enough for CIOs to capture value from these kinds
    of hybrid cloud use cases. The loftier goal of deploying and running multiple public cloud infrastruc-
    ture environments at scale, and then connecting and securing them—that’s well beyond the reach of
    mainstream IT organizations.

    The two competitive battlegrounds that will determine the direc-


    tion of the hybrid cloud market are edge computing and the link
    between on-premise and public cloud systems. Investments in
    these areas have a stronger likelihood of paying off.

    For the third proposition, edge computing, the question is “when?” not “if?” In a recent Bain survey, only
    35% of CIOs said they’re looking for end-to-end hybrid solutions that encompass the edge, the com-
    puting that occurs at or near the source of the data. Nevertheless, enterprise investments in the edge
    are growing. As video, the Internet of Things, autonomous driving, AR/VR and other emerging tech-
    nologies continue to advance, more workloads will take advantage of edge resources. The connection
    between edge environments and the cloud is going to be a critical issue as edge deployments scale up.
    Having a seamless and interoperable development, security and operations environment; common
    analytic tools; and one-touch provisioning will be major sources of value when enormous volumes of
    data are generated at the edge and need to be efficiently processed.

    What does that mean? The two competitive battlegrounds that will determine the direction of the hy-
    brid cloud market are edge computing and the link between on-premise and public cloud systems.

    38 | Technology Report 2020 | Bain & Company, Inc.

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