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Making a Case for Enterprise Cloud: A Perspective from Neuralytix

By Ben Woo, Principal Analyst, Neuralytix

The Cloud is a wonderful thing Scalable, flexible, and cost effective from the outset—it’s seems to be everything enterprises today are prioritizing. But moving everything to the Cloud is not necessarily the right or desired move when you consider other critical factors like compliance, governance, and simply the tolerance for losing some control over the infrastructure on which applications and data are stored and run.

The ideal solution would be to bring the benefits of Infrastructure-as-a-Service (IaaS) with the ability to secure, customize, and optimize on-premise architecture to meet the needs of those enterprises, organizations, or applications that demand on-premise solutions. And it just so happens that solution exists.

The Enterprise Cloud encompasses scalable, software-driven architecture, that integrates compute, storage, networking, security, virtualization, and management resources in a single industry standard server, supported by a single vendor, with the ability to have self-service portals for end-users, block, file, and object interfaces, as well as advanced disaster recovery, and business continuity services. All this is then managed and controlled from a single pane of glass.

In a recent report, we at Neuralytix make the case for building an Enterprise Cloud, examining if we truly can have the same benefits of the public cloud, but run on-premise. Digging into specific use cases, I find that the main benefits of Enterprise Cloud fall into three areas that I’ll briefly summarize in this post (and hope that you’ll explore more comprehensively in the full report):

  • Scalability;
  • Customization; and
  • Cost.

Scalability

The value of the Enterprise Cloud is in the fact that organizations have the freedom to start small and grow as their business grows—just like the public cloud. Elasticity in scaling is key, and the scalability factor for the Enterprise Cloud extends beyond simply scaling compute, network, and/or storage capacities without interruption or downtime. It also extends to the ability to support legacy applications and next generation applications.

Customization

The Enterprise Cloud is more than just a collection of integrated hardware; it also includes advanced data and business services. The benefit here is the opportunity to customize the workflow and the operations of the Enterprise Cloud to meet the specific needs of each unique organization.

This improves efficiency, and through automation, reduces and minimizes risk.

Cost

The Enterprise Cloud saves on costs in multiple ways that matter. For instance, it eliminates the shelfware problem; since it’s turnkey, businesses naturally save money.

A key focus area is how the Enterprise Cloud impacts CapEx and OpEx. By leveraging industry standard components, the Enterprise Cloud saves customers money from the outset. Through standardized components, it also reduces the risk associated with compatibility between components. But the savings go much further than capital expenditure (CapEx) savings.

The way the Enterprise Cloud is designed, with its single pane of glass centralized management platform, there are also savings throughout the lifetime of the infrastructure – i.e. reduced operating expenses (OpEx). Neuralytix expects savings in the area of 60% through the deployment of Enterprise Cloud over traditional infrastructure architectures.

The market for software-driven on-premise infrastructure is accelerating exponentially. Neuralytix forecasts that the market for software-driven datacenters will increase in revenue by 162% through 2020, with hyperconverged infrastructures (HCI) making up almost 40% of all software-driven datacenters. Vendors like Nutanix have been focused on the Enterprise Cloud for the past year, delivering a unique solution for enterprises and expanding the conversation on hyperconvergence.

To better understand why companies are reaching beyond HCI, and for a full Enterprise Cloud benefit analysis, read the Neuralytix Case for Enterprise Cloud report.

About the Author

Ben Woo is a principal analyst for Neuralytix. His areas of specialties include storage, datacenter, and infrastructure. A recognized, celebrated, provocative market visionary and thought leader, Mr. Woo frequently speaks at industry and customer events worldwide, is often quoted by leading business and technology press, advises Wall Street clients and other interested stakeholders. Mr. Woo has a unique and diverse set of skills, knowledge and experience that he uses to provide in-depth market insight and advice on key aspects of the IT marketplace to both vendors and buyers of technology.

Prior to Neuralytix, Mr. Woo was the Program Vice President of IDC’s Worldwide Storage Systems Research, where he led a team of analysts responsible for advising clients on the evolution and trends related to data storage systems. While at IDC, Mr. Woo also initiated the research program and was the lead analyst on Big Data.

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