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Unlimited Productivity: Why a resilient Hybrid IT is important for post-Covid recovery?

Unlimited Productivity Why a resilient Hybrid IT is important for post-Covid recovery

 

Hybrid IT refers to mixed computing, a combination of cloud and on-premise technology in which storage and services are made available in any combination of MAKE (self-provided) and BUY (provided by the service provider in any form) so that the best functions of on-site solutions can be used in conjunction with the best functions of cloud solutions. In short, a combination of public clouds, on-premises computing, and private clouds in your data center means that you have a hybrid cloud infrastructure.

 

Businesses all around the globe are under pressure to innovate, thus the move to hybrid cloud adoption is motivated not only by cost-saving but in supporting fast-moving digital business transformation within companies. As the key benefit of the hybrid cloud is agility, businesses ’ needs to adapt and change direction quickly are focused. The better integration and interaction work, the more successful your company can operate. Flexera 2021 State of the Cloud Report highlights 87 percent of enterprises have already adopted hybrid cloud strategies and an estimated growth rate of 17% has the hybrid cloud industry pegged to inflate from a valuation of $44.6 billion in 2018 to almost $100 billion by 2023.

 

types-of-clouds-used

 

Hybrid clouds offer the benefits of both public and private clouds and take advantage of existing architecture in a data center which is why a hybrid mixture of cloud services are chosen by forward-thinking companies. Worldwide end-user spending on public cloud services is forecast to grow 23.1% in 2021 to total $332.3 billion, up from $270 billion in 2020, according to the latest forecast from Gartner, Inc.

 

By mixing the different cloud models, their advantages can be combined. With hybrid IT, companies benefit from the flexibility of the public cloud and the high-security standards of the private cloud or the full control of their own data in an on-premise environment. For example, it is possible to operate a database in a private network while the associated application is running in a public cloud. The advantage: the data is very well protected and the performance of the application is practically unlimitedly scalable at the same time. However, companies must make sure that they know exactly where which data is processed and how they distribute which processes to the various operating models. Otherwise, there is a risk that security-critical data will end up in the public cloud. In addition, hybrid cloud solutions are significantly more complex than pure public cloud or private cloud environments.

 

The pandemic has exposed vulnerabilities in business that have been hidden for too long. Companies are finding it hard to continuously adapt when their systems are separated. With work-from-home policies and automation becoming new norms, the Hybrid Cloud is entering the next digital era in exponential dimensions. But in the end, it is primarily the security requirements for your data that decide which cloud model is suitable for you. If you process data that are not linked to any special data protection requirements, a public cloud offers you numerous advantages in terms of flexibility, scalability, and cost structure. If your company processes particularly sensitive data that, for example, may not be transmitted, private clouds or hybrid cloud environments come into question. Hybrid clouds have the advantage that they are even more flexible than private clouds. However, they are much more complex in operation.

 

While hybrid implementations can lead to unprecedented complexity in some cases, we at Xorlogics help enterprises navigate this challenge. Get an individual consultation with our cloud experts to know which path to the cloud is best suited for you.

 

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Covid19: Things We’ve Learned About #CloudComputing, So Far

 

Things We've Learned About #CloudComputing, So Far

In a remarkably short period of time, cloud computing has moved from a marginal to a fundamental element of IT operations. Thus, in just ten years, CIOs were presented with an opportunity to break the rules and create a new model for the implementation of IT. IDC forecasted cloud infrastructure spending to grow 12.9% to $74.6 billion for 2021 and Gartner expects the cloud computing industry to grow a trillion-dollar value in 2022. While cloud computing is essential in the IT strategy, it’s good to highlight where the cloud has brought benefits and in which areas companies still have to improve.

Let’s find below which strategies are working and where there is still work to be done.

 

The practice of cloud computing to bridge gaps in services

Cloud computing should be seen as a form of flexible outsourcing. It is only one vector among others for the provision of services. In computing on demand, what matters is how the company subscribes to services and benefits, not how they are delivered.

Cloud computing has the advantage of offering a very different model from the traditional ways of purchasing enterprise computing, where an ISD would acquire hardware and software for a specific location. This may be appropriate for services limited to a regional market but can encounter problems of latency at the global level. This can be very problematic, especially if you are managing IT for a highly transactional business such as a financial institution, or if you ship large amounts of data. The cloud enables CIOs to ease these performance issues by purchasing on-demand computing to create omnipresent service delivery.

You can rely on the third party to provide the diverse service you need, while they, as an expert, have the capability to deliver peak capabilities and performance where and when you need it.  As a CIO, you can expect the platform to work and be available. Now, many IT executives will do their best to avoid possessing new physical hardware, while being assured that the service will be well provided. The cloud enables IT managers to take a step towards hosting and achieve high levels of backup and security for a defined fee.

 

Adopt a cloud computing mindset

A company must have a long-term goal to migrate as much IT capacity to the cloud as it provides a cost-effective way to gain access to new skills and expertise. It can be difficult to keep in touch with all the innovations associated with the cloud; so, make sure to spend enough time brainstorming and talking with future IT professionals to get an idea of ​​future changes. They are probably more aware of the next big phenomenon that will affect the company. The culture that surrounds IT management is evolving, and that’s why you have to take a look at the new services that are available on the market and encourage employees to adopt a mindset favoring cloud computing.

However, a migration to the cloud must be carefully managed, including governance and information security. By definition, major providers (such as Amazon and Google) should be much better at securing data. However, CIOs need to be aware that convincing the rest of the company of the benefits of cloud computing can be a slow process, particularly with regard to governance, security, and approval issues.

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Let the cloud take care of core domains

Cloud computing integration must bring a tremendous solution to your organization’s operational challenge. The starting point concerns a number of core areas that CIOs can easily deliver on-demand. If you are using products such as Salesforce and Office 365, you’d have to be crazy to want to host them yourself. Better to let someone else, an expert in this field, take charge of your operational concerns. The cloud also serves as a one-time solution to problems involving certain operational projects.

 

Finding a balance and determining how to manage legacy systems

IT managers would be foolish to dismiss cloud computing, if only in terms of the quality of the service. However, while businesses will continue to migrate on-demand services, much remains to be done. We’ve noticed that some companies are opting ​​for an on-demand model and there are others that buy more internal resources.

For CIOs, moving to an on-demand model can be a headache. You have your systems inherited and at some point, you will have to consider migrating these services to cloud computing, but it’s possible, as the momentum is in favor of computing demand, despite persistent concerns about security and governance.

 

Security and Privacy

The main challenge to cloud computing is how it addresses the security and privacy concerns of businesses thinking of adopting it. The fact that the valuable enterprise data will reside outside the corporate firewall raises serious concerns. Hacking and various attacks on cloud infrastructure are affecting multiple (potential) clients. These risks can be mitigated by using security applications, encrypted file systems, data loss software, and buying security hardware to track unusual behavior across servers.

 

Reliability and Availability

Cloud providers still lack round-the-clock service; this results in frequent outages. It is important to monitor the service being provided using internal or third-party tools. It is vital to have plans to supervise usage, SLAs, performance, robustness, and business dependency of these services.

Cloud Computing: Trends for 2022 and beyond

 

Cloud Computing Trends for 2022

Although cloud computing isn’t a new concept and the benefits of the cloud are well known for a long time, cost optimization, security, data protection, and automation remain top concerns for some organizations. However, during 2020 and 2021, cloud computing exploded with the COVID-19 pandemic as more and more organizations moved most of their applications to the cloud. This decision has been motivated by the urgent need for flexibility within a very short time in order to be able to react to changed framework conditions. We will also witness the growth of rapid adoption in 2022. According to predictions from Gartner, global spending on cloud services is expected to reach over $482 billion in 2022, up from $313 billion in 2020. This shows how cloud technologies are one of the most important pillars of modern IT infrastructure today and will continue to gain importance in the future.

 

For very different reasons, companies decide to migrate their digital business processes to the cloud. According to the Flexera 2021 State of the Cloud Report, performance and scalability are among the main reasons, alongside easier data access and management and lower overall costs. Accordingly, 61% of businesses migrated their workloads to the cloud in 2020, from which 92 percent of enterprises have a multi-cloud strategy; 80 percent have a hybrid cloud strategy. But regardless of where they are at in their journey  towards the cloud, organizations should keep an eye on the following trends:

 

The public cloud is gaining in importance within hybrid scenarios

Moving to the cloud is complicated and deciding which cloud type is the right one for an organization depends on multiple factors, such as the requirements for computing, storage, and services. Each cloud model has its own advantages and disadvantages that companies have to weigh up. Hybrid cloud scenarios (i.e. an environment made up of on-premises and a cloud) have established themselves as the de-facto standard for cloud deployment – according to the Flexera study, public cloud adoption continues to accelerate as 36 percent of those surveyed already spend more than $12 million per year on public clouds and 55 percent of enterprise workloads are expected to be in a public cloud within twelve months. The reasons given for this were data protection-relevant applications and business-critical processes.

 

Real-time analytics and IoT are on the rise

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Companies make use of a number of cloud services to solve the different business requirements. Analytics and infrastructure services still comes first, followed by data for machine learning (ML) and artificial intelligence (AI). The Global Connected Device Analytics Market is estimated to be USD 14.9 Bn by the end of 2021 and is expected to reach USD 40.7 Bn by 2026, growing at a CAGR of 22.3%. This huge need for connected devices in the different industries has been motivated due to remote monitoring of employees working from home during the Covid-19 crisis. Additionally, IoT analytics is becoming a core investment strategy for various organizations to leverage analytics as a core competency to deliver better outcomes and to drive differentiation for their product and service offerings. The more intensively and consistently companies use the cloud, the more benefits they can derive from it. This trend will continue in the next year and more advanced use cases such as ML / AI analyses, IoT, but also stream processing will continue to increase.

 

Companies are increasingly lacking cloud skills

As businesses rapidly transition their processes and data over to the cloud, the demand for digital experts is increasing but the skill gap in this area can make it an unrealistic goal for some companies. There is a huge skills gap in cloud computing, both within organizations’ current workforce and in the hiring pool and the situation will worsen in the near future. Organizations are facing the issue of finding skilled IT professionals to cover core missions with critical skill sets to be able to support their business objectives. They need specialist knowledge in handling and managing huge amounts of data in the cloud, as well as building a holistic data architecture. Reports show that missing or limited cloud skills is the greatest challenge in connection with cloud migration for almost a quarter of companies (24%). As more and more organizations are pushing their digital transformation, the need for data and cloud architects or cloud DevOps engineers and cloud system administrators is increasing, but it is becoming increasingly difficult to meet them. Its foreseeable companies will concentrate even more on training their existing employees in order to acquire the required cloud skills, while at the same time relying more on user-friendly self-service solutions in the coming years.

 

As said previously, the global spending on cloud services is expected to reach over $482 billion in 2022, up from $313 billion in 2020 – the next coming years will therefore primarily be about getting the maximum benefit from cloud integration. For this purpose, companies should, on the one hand, particularly tackle the development of the required skills and, on the other hand, consider specifically which IT & business requirements they can solve with the help of the cloud. This enables them to take their cloud usage and business to the next level.

 

Sources:

Top Strategic Technology Trends for 2022: Cloud-Native Platforms

Cloud Shift Impacts All IT Markets

Flexera Releases 2021 State of the Cloud Report

Covid19: Evolution of the Digital Transformation within companies

Covid19 Evolution of the Digital Transformation within companies

The corona pandemic is continuously changing the framework for digitization. According to IBM 96% of leaders report that Covid-19 will accelerate their digital transformation by an average of 5.3 years. Another study by Celerity shows that 63% of leaders state that the Covid-19 pandemic prompted them to embrace digital transformation sooner than originally planned. The goal of promoting innovations faster and keeping up with the times is the most important reason for digital transformation for companies.

 

With the adoption of digital solutions, companies have greater resiliency. They can not only streamline their operations but also automate all manual processes in order to generate more revenues. With data driven insights, companies can make decisions faster and adapt or change course at any point. They are also better prepared to fight against cyber threats, also when their employees work remotely. All these advantages give companies a boost for their own digital transformation, but they also have to overcome various hurdles as the transition to a digital company is anything but easy. Limited resources, rigid legacy systems as well as unclear goals and rules – all these things delay IT departments when it comes to innovations.

 

Even tough 30% of organizations will increase innovation and reinvent their business models in order to future-proof their companies, digitization continues to be a major challenge for many companies. Companies’ IT departments are experiencing the greatest change: they are developing into a service provider who, on the one hand, strives to ensure that the IT systems and applications run properly and, on the other hand, acts as a full-service provider of IT-supported business processes. The requirements continue to increase. A total of four hurdles in particular slow down innovative projects.

 

Skill shortage:

According to the KMPG CIO survey, 54% of organizations reported that skill shortages were holding them back from pursuing their transformation goals. In particular, they were lacking expertise in the following areas: Cybersecurity, Technical architecture, Enterprise architecture, Advanced data analytics. Current IT teams are made of few people who have the essential technical skills but don’t have training time to develop the skills. But if your business is suffering from skills shortages, ignoring training is not the right solution – it’s much easier to train existing staff than to hire new employees.

 

 

Legacy systems

Legacy systems, which form the backbone of many enterprises, are holding them back from leveraging new digital technologies and creating new experiences for their customers/partners. Outdated business software consumes a lot of resources in companies. According to Forrester, companies invest 70 to 80 percent of their IT budget in maintaining rigid back-office systems. These systems are difficult to integrate or customize when it comes to supporting new digital initiatives. Slow development methods combined with legacy systems make the problem worse. Outdated networks and servers no longer meet the needs of companies. Taking the right step and modernizing the legacy is the way forward. The IT modernization promises cost savings, efficient management of IT infrastructure, efficient utilization of human capital, better security and risk management, enhanced user experience, and last but not the least, a direct impact on competition.

 

Limited resources

Digital transformation is necessary in order to become more agile, more innovative and more resilient, but often only limited resources are available for converting old processes to more modern tools. Building a business case for such investments can be quite challenging in terms of budget approval. Also, all legacy systems require modernization. Otherwise, they can be exposed to crashes anytime. Therefore, the introduction of new technologies can be introduced in steps, often with a free software test phase.

 

In order to be really successful, that means first and foremost to be economically positive, but also to recognize and use the opportunities of the future as a driver of innovation, a digital roadmap should be planned. Not the hard change, but a targeted and coordinated development in digitization should be the way in which all members involved within a company pull together. Strategic concepts that include optimal resource planning are required here. This means that a networked transfer of knowledge and experience must take place. Using the strengths of individual individuals and combining them with scientific innovations should be the path to productive and efficient profitability. The digital evolution is a permanent further development and with all step forward new opportunities become visible that can be realized through a stable foundation.

 

Sources:

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