A Zinnov study confirms what we always suspected: Rather than make hard and irrevocable choices, enterprises like to hedge their bets when it comes to technology.
Bangalore, August 30 2017: It is business sutra at its best. In a nuanced and very desi way of running corporations, Indian enterprises are shrewdly hedging their bets when confronted with new technology challenges like Cloud Computing. For some years now, they have been told by techno-pundits: You need to embrace the Cloud, shift your key data assets from the confines of your physical office -- or be left behind by the competition.
They concurred -- with a caveat. Like the archetypal Indian trader who still keeps a portion of his liquid funds in a steel safe, enterprises have homed on a model of cloud computing that allows them to have their cake and eat it too. Here's how:
They were told that there were two distinct options -- public cloud and private cloud. The public cloud was offered by large providers like Google Cloud Platform or Amazon Web Services. They operated gigantic data storage facilities and an enterprise joined thousands of others in hiring space in these facilities with the assurance that its data was safe, secure and always accessible. Much like hiring a bank safe deposit locker.
Another school of thought recommended that you hold your precious data close to your chest: a private cloud was like your personal strong box, the server and storage remained on your premises
Not swayed by the hype surround either cloud camp, Indian businesses have by and large, embraced a via media called Hybrid Cloud. This uses a mixture of on-premises private cloud and third party public cloud, with data flowing freely between the two. The private cloud can host sensitive or critical workloads, while less sensitive data can be sent to the public cloud.
A study conducted by technology consultants Zinnov, with Microsoft, and released last week, reveals that over 40 percent of enterprises surveyed, have planned or are planning to build a hybrid cloud infrastructure or transform their existing IT infrastructure. into a hybrid model. The resulting cost savings could be between 5% and 30% depending on the delicate balance between the two clouds.
The motivation cited for adopting hybrid cloud solutions includes, lowering total cost of ownership (54 percent), facilitating innovation (42 percent), enhancing operational efficiencies (42 percent), and enabling companies to respond to and meet customer expectations more readily (40 percent). Zinnov analysed more than 50 global cloud channel partners and found that hybrid cloud deployments constituted 45-50% of their overall cloud business.
One motivation for adopting a hybrid cloud has to do with the variable nature of many enterprises. Demand may peak at the festival season or in the last financial quarter. Then the hybrid cloud comes into its own. It can create a 'cloud burst' -- a temporary expansion of the public cloud to absorb the additional load.
Another use case is big data processing. A company, could use hybrid cloud storage to retain its accumulated business, sales, test and other data, and then run analytical queries in the public cloud, which can scale to support demanding distributed computing tasks.
Microsoft has an interesting position in the cloud business: It facilitates a mix and match combo of public and private assets -- and this is perhaps why the Zinnov survey found that according to Indian users " the hybrid cloud solution offered by Microsoft Azure is the most economical."
Cautions Zinnov CEO,Pari Natarajan: “However, enterprises need to select a hybrid cloud provider that can provide them with the right migration tools to enable seamless relocation of existing services - between dedicated private cloud and public cloud infrastructures - without lengthy or unplanned disruption to live service.”