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Best strategies for Cloud Cost Optimization

Cloud services have revolutionized how organizations store, manage, and access their data, offering unparalleled flexibility and scalability. However, as with any resource, it’s essential to optimize costs and maximize savings in this virtual realm. A cloud cost-saving strategy involves optimizing the usage of cloud computing resources to reduce overall cloud expenses while maintaining or even improving operational efficiency and performance.

 

When it comes to cloud costs, there are several components that need to be understood in order to effectively manage and save money. One key component is the cost of computing resources, which includes virtual machines, storage, and networking. These costs can vary depending on factors such as usage patterns, data transfer rates, and storage capacity.

 

Another important factor in cloud costs is data transfer fees. Transferring data between different regions or zones within a cloud provider’s infrastructure can incur additional charges. It’s essential to have a clear understanding of how these fees are calculated and consider strategies such as optimizing data placement to minimize these costs.

 

Additionally, many cloud providers charge for outbound bandwidth usage. This means that any traffic leaving your cloud environment will be subject to additional fees. By monitoring and analyzing your outbound traffic patterns, you can identify opportunities for optimization and potential cost savings.

 

One often overlooked aspect of cloud costs is idle resources. It’s not uncommon for organizations to provision more resources than they actually need or forget about those no longer in use. By regularly reviewing your resource utilization and implementing automation tools like auto-scaling or scheduling shutdowns during off-peak hours, you can reduce waste and optimize spending.

 

Licensing plays a crucial role in determining overall cloud costs. Some software licenses may require additional fees when deployed in a virtualized environment or across multiple instances within the same region. Understanding these licensing implications upfront can help avoid unexpected expenses down the line.

Develop a Cloud Cost-Saving Strategy

 

When it comes to managing cloud costs, having a well-defined strategy in place is essential. A cloud cost-saving strategy should not only focus on reducing expenses but also ensure optimal resource utilization and performance.

 

The first step in developing your strategy is to understand your current cloud spend and identify areas of potential optimization. This can be done by analyzing usage patterns, identifying idle resources, and evaluating the performance of different service tiers or instance types. Once you have identified areas for improvement, it’s important to set clear goals for cost reduction. These goals should be specific, measurable, achievable, relevant, and time-bound (SMART). For example, you might aim to reduce overall cloud costs by 20% within six months.

 

Next, consider leveraging automation tools to streamline cost optimization processes. These tools can help automate tasks such as scheduling instances based on workload demands or rightsizing resources based on actual usage data. By automating these processes, you can free up valuable time and resources while ensuring cost savings are consistently achieved.

 

Implementing best practices for cloud cost management is another key aspect of your strategy. This may include regularly monitoring and optimizing storage costs by deleting unused data or implementing lifecycle policies. It could also involve leveraging spot instances or reserved capacity options when appropriate to take advantage of discounted pricing models.

 

To further enhance your approach to cloud cost-saving strategies implementation:

  • Track and analyze spending trends over time
  • Implement tagging mechanisms for better visibility into resource allocation
  • Set up cloud monitoring and alerting to track resource utilization and costs in real time.
  • Assign meaningful tags to resources and use cost allocation tools to track spending by team, project, or department. This helps identify areas where cost optimization is needed.
  • Choose the most cost-effective region and availability zone for your workload. Leverage multi-region redundancy only when necessary for high availability.
  • Regularly review your cloud bills from various providers, analyze usage patterns, and forecast future costs to make informed decisions
  • Evaluate the use of specialized third-party tools that offer more granular insights into spending patterns
  • Ensure your team is knowledgeable about cloud cost management best practices. Training and awareness can go a long way in reducing wasteful spending.
  • Cloud cost optimization is an ongoing process. Continuously monitor and refine your strategies based on changing business needs and technology advancements.

 

Implementing a successful cost-saving strategy in the cloud requires a combination of monitoring, automation, and a commitment to optimizing resources. By developing a comprehensive cloud cost-saving strategy that encompasses all these elements – understanding current costs; setting SMART goals; utilizing automation tools; and implementing best practices – businesses can achieve significant savings while maintaining operational efficiency in their cloud environments.

Cloud Computing: A Life-Saver for Businesses in Crisis Situations

In times of crisis, businesses need reliable solutions to keep their operations running smoothly. From natural disasters to pandemics, the right digital infrastructure can make a world of difference in terms of both cost and efficiency. That’s why more and more companies are turning to cloud computing – a digital solution that promises maximum data security while being highly scalable and cost-effective.

 

It’s proven that Cloud computing is a life-saver for businesses in crisis situations. It allows businesses to continue operating even when faced with power outages, natural disasters, and other unexpected events. By storing data and applications in the cloud, businesses can keep their critical operations running and avoid costly downtime.

 

The benefits of cloud computing for businesses in crisis situations include:

 

  • Increased Flexibility: Cloud computing gives businesses the ability to scale up or down as needed, which can be a lifesaver during times of crisis when demand is unpredictable.
  • Reduced Costs: The pay-as-you-go model of cloud computing can help businesses save money during times of crisis when every penny counts.
  • Enhanced Collaboration: The collaborative features of many cloud-based applications can help businesses stay connected and work together effectively even when employees are working remotely.
  • Improved Disaster Recovery: With cloud backup and disaster recovery solutions, businesses can protect their critical data and systems from being lost or damaged in the event of a disaster.
  • Greater agility: In today’s fast-paced world, the ability to quickly adapt to change is critical for survival. Cloud computing gives businesses the agility they need to make changes on the fly and keep up with the competition.

 

 

How Does Cloud Computing Help with Business Continuity?

Business continuity is an important consideration for any business, and cloud computing can be a valuable tool in maintaining business continuity. Cloud computing can provide businesses with the ability to maintain access to their data and applications in any given circumstance. Additionally, cloud computing can provide businesses with the ability to scale their resources up or down as needed, which can help to ensure that they have the resources they need during times of increased demand.

There are many different cloud computing solutions available, and the best one for your business will depend on your specific needs. However, there are some general best practices that you should follow when implementing a cloud solution:

 

Best Practices for Implementing Cloud Solutions

There are many different cloud computing solutions available, and the best one for your business will depend on your specific needs.
However, there are some general best practices that you should follow when implementing a cloud solution:

 

    • Define Your Goals: Before you even start looking at different cloud solutions, you need to take a step back and define what exactly you want to achieve with the move to the cloud. What are your specific goals and objectives? Once you have a clear understanding of what you want to achieve, you can start evaluating different options to see which one is the best fit for your business.
    • Do Your Research: Don’t just go with the first cloud solution that you come across. Do your research and compare different options before deciding. Consider factors such as pricing, features, scalability, security, and support when making your decision.
    • Work with a Reputable Provider: When it comes to choosing a cloud provider, it’s important to work with a reputable and experienced company. Choose a provider that has a good track record and is able to meet your specific needs. Ask for references from other businesses that have used the provider’s services before making your final decision.
    • Implement a Pilot Program First: Before moving all of your data and applications to the cloud, it’s often helpful to implement a pilot program first. This will allow you to test out the cloud solution and make sure that it works well for your business. It’s also a good way to get a feel for the provider’s customer service and support.
    • Stay Up to Date: Cloud technology is constantly evolving, so it’s important to stay on top of the latest trends and changes. Make sure that your cloud solution is up to date with the latest features and security measures in order to ensure that you’re getting the most out of your investment.

 

Following these best practices will help ensure that your cloud solution is implemented successfully and meets your business needs.

 

Nevertheless, there are a few critical considerations to take into account when choosing a cloud provider, particularly for businesses in crisis situations. The 1st is scalability: can the provider scale up or down to meet the changing needs of the business? 2nd is reliability: is the provider’s infrastructure reliable and robust enough to handle mission-critical workloads? 3rd is security: how well does the provider protect data and ensure compliance with industry-specific regulations? 4th is cost: what is the total cost of ownership for using the provider’s services? And lastly, flexibility: how easy is it to use the provider’s services and how much control does the customer have over their own data and applications?

 

To choose the best possible cloud provider for your business, it’s important to understand your own requirements and objectives so you can evaluate different providers to see which one best meets your needs.

At Xorlogics, we advise you on all questions regarding the introduction, update or optimization, maintenance, and further development of your IT systems according to your needs and are at your side as a competent partner. We are happy to assist you in all technical areas. Thanks to our many years of experience, we know what is important, and which hardware and software make sense for your work processes. Just contact us and we will be happy to advise you.

TOP IT Trends for 2023

Undoubtedly, COVID-19 was biggest push for many companies to accelerate with their digitization. In 2022 already many business processes are largely handled digitally and corporate data increasingly form the basis of business success. In order to continue to ensure their business success, in 2023 companies will increasingly deal with sustainability, their multi-cloud strategy and cyber-protection.

The market research company Gartner assumes that spending on on-premises and cloud services will be accelerated by 2025, with the cloud taking on the higher share vs traditional IT. After covid19, the two main reason of this dramatic shift are issues related to the supply chain and climate related issues.

 

Multi & Hybrid Cloud:

With more and more services migrating from on-premises to the cloud, the multi-cloud in particular is now gaining in importance. There are many reasons that speak in favor of a multi-cloud strategy when selecting cloud tools: If services from several cloud service providers are used, costs can be saved, the risk of application failures are reduced and certain types of GDPR requirements are respected. Furthermore, many companies attach importance to choosing the most suitable platforms for specific processes, ensuring scalability and not being exclusively dependent on one provider. It also provides the necessary overview of a wide range of management functions and data services. Since multi-cloud environments represent a larger attack surface for various threats, the development of a suitable IT security strategy is also much more complex. To ensure that potential security gaps do not arise in the first place, a comprehensive top-down security strategy should be implemented.

 

Sustainable Cloud

More and more companies are emphasizing on the reduction of their environmental impact. By demanding relevant and reliable evidence from their cloud suppliers, IT buyers are paying making more and more sustainable choices. Various studies indicate that cloud-based solutions can lead to significant CO2 savings. All leading hyperscalers (providers of cloud platforms such as Amazon/AWS, Microsoft/Azure, Google/GCP) are constantly working on energy-efficient data centers and on the most efficient resource allocation possible in order to reduce their energy consumption. IT that lives up to its responsibilities can make a significant contribution to a net-zero world. Sustainable IT focuses on the growing energy consumption of the entire IT value chain in an environmentally-oriented approach.

 

Lack of IT staff

The digital transformation is a constant challenge for the worldwide companies. The IT personnel market is tense due to a lack of specialist staff, which can impact companies’ efforts towards digitization. Companies cannot remain successful in the global market without specialists with in-depth IT & cloud knowledge. And the fact that the future is hybrid & multi-cloud, companies are concerned about the lack of qualified staff. The necessary skills cannot be acquired overnight. An increasing demand for software developers, service desks and administrators for information technology as well as experts for data security and business intelligence will be recorded in 2023.

 

Robotic Process Automation

Considering the general shortage of skilled workers and economic and geopolitical uncertainties, technologies are favored that are easy to use and produce a measurable gain in efficiency. Less administration, more productivity – this is the motto for the use of automation technologies in day-to-day activities. RPA software robots can imitate the actions of humans on the computer and thus carry out rule-based and repetitive tasks flawlessly and without a break. Thanks to the latest improvements in data entry and symbol recognition, many manual tasks can be done by robots. According to Gartner, the global robotic process automation market was estimated at USD 2.09 billion in 2020 and is expected to reach USD 33.3 billion by 2023 due to the growing trend of cloud-based solutions and the increasing adoption of robot-based solutions across various end-user industries.

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

Multi-Cloud: Tips to Develop an Effective Cloud Security Strategy

The term security encompasses more than just protecting a company. A holistic security strategy supports all business processes instead of limiting them. In order to implement a holistic cloud strategy, suitable security tools must be integrated and responsibilities must be clearly assigned in order to avoid misunderstandings and to be able to defend the complex cloud environments against cyber-attacks. As the complexity is increasing, more and more companies are realizing that a single cloud environment is not a beneficial approach for the long run. Whether private or public, every cloud service offers different tools and options, from advanced machine learning tools to affordable storage space prices.

 

Cloud enables companies’ greater agility and scalability, higher performance, and faster access to innovative technologies, all of which help a business to gain a competitive edge by allowing them to be effective in today’s digital market. Knowing that the multitude of cloud services opens up many options for optimizing individual business processes, the multi-cloud world is the new normal for many enterprises. Companies are pursuing a cloud strategy that takes a multi-cloud environment into account. This requires a uniform security platform that carries out security controls and compliance for hosts regardless of the cloud provider or the deployment model used, in order to meet the requirements of the several clouds.

 

Multi-Cloud Tips to Develop an Effective Cloud Security Strategy

 

Choosing a persuasive or strong cloud security provider depends on the company’s ability to address security controls like compliance and privacy issues, protect the data by security measures and few tests from malicious threats, hijacking, etc. Additionally, cloud security is a shared responsibility between the provider and the customer. In the shared responsibility model, there are basically three categories of responsibilities: responsibilities that are always those of the provider, responsibilities that are always those of the customer, and responsibilities that vary depending on the service model: Infrastructure-as-a-Service (IaaS), Platform-as-a-Service (PaaS), or Software-as-a-Service (SaaS), such as cloud email.

 

Here below are few tips that can be helpful to develop an effective multi-cloud security strategy:

 

  • Data protection should be the highest priority

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The main topics in IT security have not changed fundamentally in recent years. Even in a multi-cloud environment, many of them continue to play a major role – but the weighting has shifted with the General Data Protection Regulation (GDPR). Data protection is now at the top of the priority list for European companies. And with the passage of the “Cloud Act” adopted in 2018, things became even more complex for European companies. Therefore, using only national cloud providers isn’t the only solution. Much more important is the question of which workloads are being processed. This means that non-critical applications that do not involve any personal data can continue to run in international data centers of cloud providers.

 

  • Encrypt data consistently

No matter where companies store their data and whether this is to be classified as critical or not – there will always be people who try to overcome barriers. Encryption should therefore be a standard in every company. Consistent encryption on three levels is ideal: the transport route, the storage, and the data itself. The current trend is towards on-the-fly encryption – that is, only users with the correct key are authorized to access information. If you close an open file, the lock will snap shut again. In addition to the encryption, organizations must perform an inventory of security vulnerabilities that they have and those they had in the past because understanding them clearly can help appropriately to shape their organization’s cloud security efforts in the future. So, IT managers must ask the following questions while defining the vulnerabilities: What kind of attacks can the vulnerability of their organization attract? What vulnerabilities does the industry deal with currently? What kind of security threats are they unprepared for?

 

  • Identity and access management

Anyone who works in a multi-cloud environment usually accesses countless cloud services from various providers every day. That is why professional Identity and Access Management (IAM) is also a must. In this way, companies prevent employees from using the same (sometimes insecure) password for every service, for example. Without a comprehensive IAM plan, an organization is certainly more vulnerable to attacks and data breaches. Thus, integrating the right IAM strategy with an evolving multi-cloud architecture will help protect threats and ensure that the right users get access to the right information when they need it.

 

  • Transparency and scalability

The strength of a cloud-based enterprise environment lies in its scalability and elasticity. However, using multiple platforms in a multi-cloud approach often leads to an unpredictable data flow, resulting in a higher level of complexity, particularly security issues. Therefore, multi-cloud security must be integrated to work effectively. The integration of security tools enables cross-platform transparency and consistent security. The cloud security architecture must also be dynamic, flexible, and able to move with cloud workloads and applications as they expand.

 

Undoubtedly the digital transformation is leading the transition to multi-cloud networks and requires strict security management. By integrating the native security features of all clouds into the multi-cloud security framework, companies can multiply their cloud security. This is the only way to protect valuable data, workflows, and resources while meeting the challenges of performance, scalability, and complexity of a constantly evolving multi-cloud environment.

3 key benefits of Public Cloud for E-commerce

Is Your Public Cloud Data Secure?

The pace of technological progress is rising, hardly a day goes by without we witness critical changes or transformation in all sectors. In the past, we had to physically rent a space to sell our goods, but Ecommerce emerged and offered companies the opportunity to sell items online without having to rent a store like before. Additionally, with the COVID-19 crisis, we’ve witnessed an expansion of e-commerce from luxury goods and services to everyday necessities.

 

Ecommerce in Belgium was worth € 10.26 billion in 2020. That’s a decrease of 10% compared to 2019. Of course, the decline has everything to do with the coronavirus outbreak. Belgians bought far fewer services online but ordered more products. The corona crisis has massively accelerated numerous developments and trends that concern manufacturers, brands and retailers. Customers place more value on personalized offers, good service, and availability.

 

These days, many more e-commerce companies, especially small and medium-sized businesses are also taking advantage of the benefits of cloud computing. Businesses are recognizing the advantages of investing in cloud computing technologies for their massive opportunities such as efficiency, reliability, scalability, improving availability, global rollout, agile development, and business continuity. Ecommerce leaders are accelerating their journey to the public cloud as the future of e-commerce lies init.

 

Companies that want to sell successfully online in the long term are required to use technological resources efficiently. A suitable e-commerce platform enables a comprehensive and flexible process independent of the cloud provider and commerce platform to manage all operations related to online sales of products or services. Companies can solve their core problems, such as lack of resources and excessive costs by getting an external partner with in-depth e-commerce expertise and application know-how in the early stages of an e-commerce project.

 

Manufacturers and brands from a wide range of industries are recognizing the opportunities related to increasing their direct sales (D2C) and are building their own e-commerce channels apart from retail. To achieve these results, companies are confronted with challenges in the implementation and development phase on the technical side. For small and medium-sized organizations, the most common hurdles are the lack of resources and the people to operate an e-commerce system – for processes, task arrangement, technology, and organization – and the often-high costs of an e-commerce operation that offers reliability, scalability, and high availability.

 

The problems in implementing and maintaining the technical infrastructure are countered by customer requirements, which are increasing enormously in e-commerce. More and more users are using their mobile devices to shop and expect high-resolution images, videos or virtual reality integration, which is what sophisticated product data management is all about and requires high scalability and agility in development. It’s the main reason why the cloud is becoming more and more relevant for technologies and applications related to e-commerce. The public cloud in particular offers three key advantages for e-commerce.

 
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Scalability during peak loads

Learning to manage peak traffic times is critical as you grow because even some of the biggest brands sometimes struggle to keep up with traffic. The infrastructure and platform must be able to cope during peak times like Black Friday or the week leading up to festive events otherwise there is a risk of negative effects on the user experience, the conversion rate, and customer loyalty. Public cloud solutions offer the possibility of autoscaling, which enables additional computing and storage power to be accessed within seconds and traffic fluctuations to be dealt with. This scalability ensures consistently good performance by handling demand spikes effectively.

 

Agile and secure development

In the cloud, unlike on-premises, the required infrastructure, such as test systems, is available as Infrastructure as a Service (IaaS) within minutes. There is no lead time or IT ordering processes. Adjustments can be made at any time from anywhere and in some cases even automatically – especially for the user experience, it may be necessary to switch new features live quickly. The public cloud leads the way when it comes to agility and speed. Public cloud solutions help speed up the application development process; enabling you to flexibly meet end-user needs. By opting for public cloud, you can focus on what you do best, create value and drive revenue, rather than spend time managing your IT infrastructure and platforms. Today, analysis shows that the public cloud is more secure than its private counterpart. As large public cloud providers simply cannot afford security breaches, they make big investments in security. They offer more security, as it is based on proven and reliable platforms and providers can maintain their conformity with the GDPR, for example, via certificates.

 

Performance across national borders

A global rollout or expansion of e-commerce to other countries can be achieved quickly and inexpensively via the public cloud. The content is delivered via a network of edge servers so that users from other countries can access data. The globally available infrastructure means the improved performance of your website by securely delivering data, videos, applications, and APIs to customers globally with low latency and high transfer.

 

Conclusion

Cloud infrastructure offers e-commerce businesses good incentives. Cloud services are enabling e-commerce companies to reach their goals and provide a customized experience to the customers. In order to be successful in e-commerce in the long term, companies are well-advised to use the full potential of all technological possibilities. It is important to ensure that the entire value chain from planning to implementation, operation, and optimization of an e-commerce solution is strategically covered.

Moving to a public cloud is a critical business decision. Get in touch with our experts if you wish to bring flexibility, agility, scalability, and reliability to your business!

COVID-19: Companies Journey toward Digital Expansion to become Faster, more Productive and more Responsive

Digital transformation progress

 

Our everyday life and way of doing things are completely changed since COVID19 started. It has accelerated the global digital transformation, according to the most recent F5 State of Application Strategy survey (SOAS). The seventh annual edition of this study is based on a survey of 1,500 participants from various industries, company sizes, and positions.

 

The need to adopt digital services across industries, geographies and communities is accelerated due to the dramatic shift in remote work and social distancing so that companies can improve their connectivity to interact with customers.

Business leaders have recognized digital technology as a key driver of revenue and raced towards digital transformation within their company. Here, below, are the key findings of the F5 survey:

 

  • AI-assisted business has tripled.
  • Applications continue to be modernized rapidly, with APIs a method of choice.
  • The importance of SaaS-delivered security is rising as organizations work to unify security across distributed applications while managing more architectures than ever.
  • Architectural complexity makes multi-cloud availability an imperative, and edge deployments are increasing, too.
  • Telemetry will take us to the future—but now, nearly everyone is missing the insights they need.

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Future-ready organizations are working to improve connectivity, reduce latency times, guarantee security and use data-driven insights. There is increasing interest in public cloud and SaaS, edge computing, and seeking application security and delivery technologies that are easy to deploy and provide data for decisions.

Modernization remains the top priority when it comes to operating on both modern and traditional application architectures for more than 87% of organizations that’s 11 percent more than in 2020. Additionally, almost half of all companies – 30 % more than last year – manage at least five different architectures.

 

Since last year’s SOAS report, the growth of AI and machine learning has more than tripled to 56%. This means that more and more companies are in the late phase of digital transformation. 57 % of those surveyed have begun digital expansion, an increase of 37 % compared to the previous year. This shows an increased focus on business process automation, orchestration, and digital workflows to integrate applications. 77% are already modernizing internal or customer-oriented apps, which is 133% more than in the previous year.

 

Additionally, two-thirds of respondents use at least two methods to create modern workloads, a mixture of traditional and modern application components. Of the companies with only one method, 44% say they use modern interfaces, either via APIs or components such as containers. More than half of the respondents already use infrastructure as code. Organizations using this approach are twice as likely to deploy applications even when using automation. They are also four times more likely to use fully automated application pipelines.

 

Companies are realizing the potential of edge computing. It enables new services and better performance by placing applications as close as possible to the sources and users of data, situation may vary for each industry and business function. Of course, COVID-19 is an accelerator due to the distribution of labor. No less than 76 % of those surveyed are using or planning edge implementations. The top reasons are to improve application deployment, performance and data available for analysis. In addition, 39% believe that edge computing will be strategically important in the years to come. 15% already host technology for app security and delivery at the edge. More than a third of companies (42%) will support a fully remote workforce for the foreseeable future. Only 15% plan to bring all employees back to the office.

 

Companies are creating and collecting more data than they have at any point in the past. All this data is coming from different sources. However, according to surveys, sufficient data does not necessarily deliver the insights companies really need. More than half of the respondents already have tools that assess the current state of applications. But an alarming 95 % say that they are missing important findings from the existing monitoring and analysis solutions. Accordingly, the collected data is primarily used for troubleshooting, followed by the early detection of performance problems. Almost two-thirds of respondents (62%) measure performance in terms of response times. Less than a quarter of companies use them to uncover degradation in performance. And only 12 percent forward the data to business areas.

 

More than 80% of respondents believe that data and telemetry are “very important” to their security, and over half are excited about the positive effects of AI. Participants also named platforms that combine big data and machine learning (also known as AIOps) as the second most important strategic trend in the next two to five years.

 

In many ways, the coronavirus pandemic has challenged businesses and governments around the world. In order to rise to the challenges caused by the pandemic, businesses have modernized and distributed applications in short term. Digital technologies have allowed many organizations to avoid a complete standstill, due to unexpected and urgent shifts in work. Companies must continue to discover and implement AI and other digital technologies for the continuity of their business.

 

The full report can be downloaded here: The State of Application Strategy in 2021

Business Automation & Multi-Cloud Management: Micro and Maxi trends for 2021 and Beyond

iot IoB covid gartner xorlogics

The year 2021 is all about transformation processes, primarily resulted by the exceptional situation we’ve witnessed in 2020. As 2020 caused a major shift in how business and IT teams operate, the development around COVID-19 was and still is a great challenge for all organizations. In addition to classic customer service, IT service, in particular, is confronted with more tasks and service requests. So that the workforce can work productively and quickly, the IT service needs intelligent tools for automation. Many changes have been on the agendas of IT departments for several years and vary from micro changes that affect the big picture to maxi changes that will affect future generations of employees.

 

In this continuously changing environment, organizations are exploring new ways to operate and drive growth. Each year, Gartner, Inc. releases a series of studies mentioning trends/predictions that will impact the business environment, IT, and technology in the coming years. Here below, we’ve gathered the most relevant trends to the IT automation market to help IT, professionals.

 

“Hyper automation is irreversible and inevitable. Everything that can and should be automated will be automated.” Brian Burke, Research Vice President, Gartner

 

  • By year-end 2025, over half of the world’s population will be subject to at least one internet of behaviors (IoB) program (private, commercial or governmental).
  • By 2025, 50% of enterprises will have devised artificial intelligence (AI) orchestration platforms to operationalize AI, up from fewer than 10% in 2020.
  • By 2025, 40% of physical experience-based businesses will improve financial results and outperform competitors by extending into paid virtual experiences.
  • By 2025, half of the large organizations will implement privacy-enhancing computation for processing data in untrusted environments and multiparty data analytics use cases. 
  • By 2024, organizations with IT teams that understand the needs of customers will outperform other organizations’ customer experience metrics by 20%.
  • 2023, 40% of all enterprise workloads will be deployed in cloud infrastructure and platform services, up from 20% in 2020.
  • By 2025, traditional computing technologies will hit a digital wall, forcing the shift to new computing paradigms such as neuromorphic computing.
  • By 2025, most cloud service platforms will provide at least some distributed cloud services that execute at the point of need.
  • By 2025, customers will be the first humans to touch more than 20% of all products and produce.
  • By 2024, organizations will lower operational costs by 30% by combining hyper-automation technologies with redesigned operational processes.
  • By 2024, 80% of hyper-automation offerings will have limited industry-specific depth mandating additional investment for IP, curated data, architecture, integration, and development.
  • By 2024, more than 70% of the large global enterprises will have over 70 concurrent hyper-automation initiatives mandating governance or facing significant instability.

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Cloud Computing Adoption in 2020

All Cloud 2020 Cloud Infrastructure Report xorlogics

According to a report from Forrester cloud adoption meant to accelerate and change the enterprise landscape entirely, transforming the cloud from being “a place to get some cheap servers or storage, to being shorthand for how companies turn amazing ideas into winning software – faster.” This statement fits perfectly with AllCloud’s finding that 85% of organizations expect to have the majority of their workloads on the cloud by 2020.

 

A study from Flexera 2020, in which a total of 750 global cloud decision-makers and users about the public, private and multi-cloud market participated from around the globe, also confirms that Cloud spend is rising as organizations adopt multi-cloud strategies and put more workloads and data in the cloud.

According to the AllCloud study more than 70% of IT professionals said half their companies’ IT workloads are in the cloud now, 85% expect to have the majority of their workloads on the cloud by 2020, and more than 23% will be cloud-only.

 

Here below are the highlight of the report on how organizations are progressing in their journey to cloud. It’s important to know that the survey began in the first quarter of 2020 = during the early phase of COVID19.

 

cloud 2020 xorlogics flexera

 

Multi-Cloud success within Enterprise:

Many organizations silo applications within a given public or private cloud, with 41% integrating data between clouds. 93% of enterprises have a multi-cloud strategy and 87 % have a hybrid cloud strategy.   Only 33% of all participating organizations use multi-cloud management tools. Respondents use an average of 2.2 public and 2.2 private clouds.

 
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Public Cloud adoption within Enterprise:

20% of participating enterprises spend more than $12 million per year on public clouds. The top three public cloud providers remain AWS, Azure and Google. Azure is narrowing the gap with AWS in both the percentage of enterprises using it and the number of virtual machines (VMs) enterprises are running in it. 40% of enterprise AWS users spend at least $1.2 million annually versus 36% for Azure More than 50% of enterprise workloads and data are expected to be in a public cloud within 12 months. 59% of respondents who answered a question about COVID-19 expect cloud use to exceed plans due to the pandemic. The top challenge in cloud migration is understanding application dependencies.

 

Top Challenges of Cloud adoption:

83% of enterprises indicate that security is a challenge, followed by 82% for managing cloud spend and 79% for governance. For cloud beginners, lack of resources/expertise is the top challenge; for advanced cloud users, managing cloud spending is the top challenge. Organizations are over budget for cloud spend by an average of 23% and expect cloud spend to increase by 47% next year. 56% of organizations reported that understanding cost implications of software licenses is a challenge of software in the cloud. Organizations aren’t taking advantage of all cloud provider discounting options, but are beginning to leverage automated policies to shut down workloads after hours (51%) and rightsize instances (49%).

 

Source:

Flexera 2020 State of the Cloud Report

All Cloud : 2020 Cloud Infrastructure Report

 

Machine Learning and Data Protection in the Cloud

Machine Learning and Data Protection in the Cloud

 

As more organizations are shifting infrastructure and services to the cloud, more are adopting a multi-cloud strategy. In fact theworldwide public cloud service market is expected to reach $623.3 billion by 2023. 83% of enterprise workloads will be in the cloud by 2020 and 94% of enterprises already use a cloud service.

 

These numbers show that most companies are already using cloud solutions in one form or another. In addition to the many advantages that the cloud can offer, it also increases the attack surface. Cloud growth creates new security threats, and organizations are struggling.

To guarantee a high level of security in the cloud, modern security solutions with machine learning, analytics and automation can help. Machine learning has already taken a massive increase in adoption over recent years and many businesses have already started to plan or have already developed machine learning models for security purpose.

 

Most IT departments are well equipped and informed with ensuring local network security. But how this really works in detail in the cloud is still relatively unfamiliar in many organizations. In addition, many business are already busy with securing their existing infrastructure, thus securing cloud infrastructures can be ignored or forgotten. What many businesses underestimate is that even complex hybrid infrastructures can be secured with advanced technologies that use machine learning, with a manageable cybersecurity budget.

 

In almost all industries, the cloud is already being used as an effective extension or replacement for some of the data center resources. And if you are not yet in the cloud, you are probably planning this step at the moment. But before moving to the cloud, make sure that critical security and regulatory questions are answered. As companies who adopt a multi-cloud strategy need visibility across it all to prevent downtime and to stay ahead of hackers.

 

Cloud-related threats are at an all-time high

 

It is not surprising that cloud-related threats keeps increasing, and there is no reason to believe that this will change in the near future. According to the recent study by the Ponemon Institute, the average cost of a data breach worldwide now equals $3.86 million – $148 per compromised record. However, the numbers vary greatly from country to country. In addition to that, a recent Skyhigh Networks study found that every organization operating in the cloud had almost two security incidents each month. These include: inside threats (both accidental and malicious), privileged user threats, compromised accounts, or data exfiltration. This shows that data is fundamentally endangered regardless of the storage location. Contrary to the often erroneous assumption, the provider of the cloud is never responsible for securing corporate data. For example, AWS states that they are responsible for the security of the cloud, but their customers for security within the cloud. Responsibility thus falls into the IT security of the companies using it, which often does not have the right personnel or know-how to guarantee security in the cloud.

Along with other challenges, IT security teams have a dual mandate to secure data in cloud services procured and managed by their organizations, as well as corporate data that employees upload to cloud services that they find and use on their own.

 

What specific steps can you take in this case to ensure security in the cloud as well?

 

A robust cloud security program includes technologies to protect, detect, investigate and respond to security incidents. The most effective cloud security technologies are data encryption, network encryption and SIEM (Security Information and Events Management). With the exception of SIEM, most technologies focus primarily on protecting and building a defense. However, next generation SIEMs also include proactive monitoring, analysis to improve detection and Reporting and forensics about security incidents, investigation and response to security incidents along with alerts based on analytics that match a certain rule set, indicating a security issue.

This makes the latest generation of SIEMs the ideal solution to secure hybrid environments. SIEM tools work by collecting and aggregating logs, reports and alerts from all of your security tools and solutions. These tools then present this information in a centralized location, by improving visibility and speeding incident analysis and response.

 

Machine learning key to securing data in the cloud

 

Fact that hackers are growing in sophistication and their malware is evolving quickly and continuously, enterprises must adapt a robust data protection strategy. Terms such as “data science” or “machine learning” started long ago as buzzwords in the IT industry. For some time now, however, the clever algorithms have been helping to recognize patterns in many areas and are already doing so in IT security. Many companies in numerous industries are currently facing the challenge of securing existing or future infrastructures in the cloud. Already used in speech recognition software and ERP systems for data management, the clever algorithms of machine learning are now being leveraged in cloud security solutions in order to enable enhanced threat detection and real-time security.

 

Next-generation machine learning algorithms are ideal for today’s cloud security because large data volumes are the most important condition for their reliability. These ‘intelligent’ solutions are able to take in high volumes of data from high-traffic environments andperform an extensive property and behaviour analysis to detect threats and take the appropriate actions in a variety of scenarios.

Therefore, the use of machine learning is the logical response to the growing amount of data and the ever-evolving threats found in the cloud. Machine learning solutions are helping organizations to secure data and enabling them to securely adopt any cloud application, despite advanced malware.

 

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