Cloud Crunch
Cloud Crunch

Episode · 1 year ago

S2E06: CXO Considerations: 2020 Enterprise Cloud Trends

ABOUT THIS EPISODE

How are enterprises responding to the COVID 19 pandemic and how is it affecting their cloud usage? We take a look at 6 key findings from 2nd Watch’s “Enterprise Cloud Trends” survey and discuss what the survey indicates and what we ‘re seeing from our own clients.

...involve Solve, evolve. Welcome to cloud Crunch The podcast for any large enterprise planning on moving to or is in the midst of moving to the cloud hosted by the cloud computing experts from Second Watch, Ian will be chief architect Cloud Solutions and Skip Berry, executive director of Cloud Enablement. And now, here are your hosts of Cloud Crunch. Welcome back to Cloud Crunch, everybody. So glad to have you here this week. This episode we're gonna have another conversation with one of our fantastic colleagues. Michael Elliott, senior director of product marketing at Second Watch. And, well, you've been out there doing some research at the field talking to a lot of people how things were going out there, haven't you? Absolutely. We wanted to get a pulse off. Kind of not only our clients, but, you know, our target market Large enterprises to understand. Really? How are they feeling? What? We ran the survey towards the end of the summer and got some really, really interesting findings back from it. Yeah, no doubt. I mean, obviously things have changed a lot this year as we're recording this in December of 2020. You know, we're all optimistic that things might improve as far as vaccines and covert rates. Obviously, this has taken a toll on a lot of people, and we hope all our listeners out there and their loved ones and themselves were safe and staying healthy as they can be and hopefully keeping the world still going for themselves. And, you know, mental health, of course, is a very critical part during this time period. But let's take into a little bit about some of the things that you're out there looking for, or even talking to our customers about. You've identified some interesting trends, and you've shared this report with me, and I love for you to share it with our listeners as well. Let's talk about let's just grab one of the first ones here, translate you're seeing Let's talk about some remote workers. Well, before we start you, you hit upon a word around, you know, being...

...optimistic about the future, and one of the overarching kind of themes we found through all this was I t was predominantly optimistic. But there are some challenges out there, so, you know, diving into that first one that support for remote workers. Clearly you know that was something that really, really resonated. And that was one of the pain points that they were coming across. So as we look to, you know, some of the trends. There was really a focus around three things, but, you know, remote work or access, especially into the corporate systems that ranked the highest of some of the biggest challenges they're seeing out there. Along with that, though, there was, you know, the complexity of just managing remote workers as well as you know, the conferencing, the collaboration. And there were a lot of issues going on. If you recall back last summer around collaboration tools, you know, here it second watch. We had already had really well established. We operate in a remote environment, so we were pretty comfortable with that. But that was one of the big challenges we saw in supporting remote worker staff Was that conferencing and collaboration tools just weren't up to speed where they needed it? Yeah, it seems like, you know, things have gotten a little bit better on that. There's still been some glitches here there, but definitely when it comes to remote desktops, we're still seeing some conversations around that I think people are still even though we're boy having months arena now, nine months, 10 months, Its's still a challenge to some degree, but definitely there's been some improvement. Yeah, I have Children at home, so we even see it on the education side. Very interesting. No, we've been pretty fortunate here in our house is you know, we have really good Internet. I had actually increased bandwidth to the house a while ago, so we were fortunate around that. But cos it's not easy to just call up your Internet provider and, you know, up the bandwidth. So there was a lot of challenges within that. Yeah, I also we had to upgrade our WiFi Thio tri band...

...mesh network toe, try to keep things going a little bit better. The other router just couldn't handle all the streams and multiple streams going on at the same time here, So I'm sure everybody is feeling the same thing. So let's talk about how it's impacted the enterprises Farrah some of the decision making they're going through. Obviously, you know, at the beginning of every year, people are optimistic and they're ready to take on some large projects In this case, you know, we're in the midst of many transformations. Let's talk about the trend that you're seeing there of how that's affecting some of that well. And it goes to your idea about being optimistic. And what we found in the survey is you know, half the respondents are really leaning in, their accelerating their use of cloud to support remote employees. And they're really leaning into accelerating digital transformation and cloud use, which is obviously, you know, beneficial for a company like us. And I'm sure, you know, and some of the conversations and work you've seen in you're seeing a lot more companies saying, How do I accelerate towards digital transformation? How do I accelerate movement of applications to the cloud so I can be more responsive? Yeah, I think I take that even a step further. And just some of the things that I've seen recently in the last two months particularly is the acceleration on data modernization particularly. There's the legacy licensing agreements that are getting harder and harder for these organizations, but also just the freedom of being able to do what they want to do. So I think they're taking the opportunity to say, Hey, I have this, you know, license database system had it for a long time. It's been with me a long time. It's time to modernize and they're looking at different ways of doing that. And it zits really a big transformation there on itself because they may be breaking what I'll call a monolithic database into maybe multiple types of data bases so and and moving more towards open source type platforms. So great. I mean, it's I think it's the foundation for a lot of the...

...transformation. Obviously, the data is very critical, but obviously eso. One thing you know in that I'm here and I'd love to get your kind of insight on is, you know, as we look at data engineering and how do I take my data basis and migrating involved? Those is CEO is going out and looking out and saying, Do I have the talent in house? Don't have the skill set in house to be able to achieve some of these digital transformation type initiatives? Yeah, definitely. I think there's still a shortage of talent out. There are cloud service providers there, definitely hiring. I mean, virtually everybody at this point, so it's tough to compete against them. But a lot of it is is that we're seeing clients saying Hey, I don't want you just to come in and do this project and leave if they want to do it with us So they're doing it in tandem and so that they can up skill along the way. So they're using an engagement. It kinda kick it off, build a foundation and maybe some pipelines, particularly around moving data, teaching them how to do it and and reusing that themselves. Maybe the second project their arm or leading it and then ultimately they take it over. So it's really a bit more on the job training that we're seeing. It's like I said, you know, if they go out and get a certification, that they may end up being picked up by somebody else's. Well, of course, we want to encourage the certifications, but it's it's a tough labor market right now in this area because there's a there's a big rush towards it, so definitely I see the There was a lot more up Skilling and looking how to get there now, one of things that we did talk about, though, was the, uh, licensing and things like that trying to save some money, get some freedom. Let's talk about how some of the cloud budgets have been impacted with everything going on. I was really surprised by this one in, and I expected cloud budgets to really shrink, and I'd seen kind of predictions from some of the analyst community. But what the research really told us was, you know, although they're being impacted by, you...

...know, Cove, it and everything around that budgets actually have remained the same or actually increased. And when they look forward, they believe they're gonna increase even mawr, you know, 12 months, you know, we're talking summer, So by next summer, they feel like their I t budgets are actually gonna increase Maura. And I see a lot of this is this is their opportunity to position the company for the long haul. And I think we got some of that, you know, research notes back from the study. People are thinking I could either contract and and maybe I'm in a vertical where I have to contract. But the other verticals are starting to look at and say this is my chance to gain competitive advantage. So we saw a lot of that come through in the survey. Yeah, no, that's that's kind of interesting, too, because it kind of counterintuitive to a lot of things that you would anticipate with what's going on. Definitely. Yeah, I'm seeing the same thing too. It's just, you know, empirically don't have a scientific study here, but they're using this time to say, Hey, how come we come out of this in a much better situation? A lot of mobile app development going around it, different customer experience around digital is transpiring and just really that optimization as well because hopefully that will lead to an R Y and a payback period for them. But they're willing to invest that money right now. So I think that Zaveri strong and encouraging situation where hopefully a lot of our partners and our customers are out there, they're going to really come out in a great position once things kind of get back to the new normal. Yeah, I think as well you know, CEOs are looking at I t not as much anymore is that cost center, but somebody that can actually enable the company and propel them forward. So I think there's starting to be a mind shift of Where does I t fit in the organization? Yeah, it's no longer just a cost center utility player. It's just starting to be partners with the business owners inside, and we're seeing more and more of that as well. Now, this month again December 2020...

...we've had some very high profile security events take place. And so, you know, I mean, it's I don't wanna, you know, kick them when they're down because these ones sound like they were extremely sophisticated and potentially could have happened to anybody, no matter who they are. But, you know, kind of with that in mind, what do you feel like? Some of the security concerns are with these organizations as well. At this point, well, clearly, how you manage security in your traditional data center and how you manage it in a cloud environment is not the same. There is differentiation around that, and I t recognizes that, but they don't exactly know how to respond. So in the survey, 75% of the respondents said cloud security and data governance are my main concern. It's the number one priority. I may not know how to solve that yet, but it's a concern that I'm looking at. So we saw a lot of that bleeding through the survey and a lot of places, and there's a lot of other things that rose up in importance. You know, I mentioned a little bit about data governance, but security was by far the number one issue. And I know how is second watch from that perspective, starting to see And how are you seeing Cloud security and clients start to talk about How can you help us here? Yeah, I definitely think it's It's around visibility. It's understanding what's going on. I think there are, You know, it's really bringing it up to the fore thought of what they could do. The visibility is a tough thing, So a couple of things I've seen is people are starting to ask about kind of different security postures. There's some or conversations that are starting to take place about ah framework called miter, which is an interesting way. It's a little bit more proactive than your traditional security frameworks. In addition, they want, you know, we're starting to see the rise of AI response to security threats as well. So they want MAWR...

...proactive, faster response times with that higher visibility, then just really need to understand what's going on. Although in the corollary to that there, I have seen customers investing a lot of money into very advanced firewall protection that they put between the cloud and their hybrid network. And some cases the cloud has to come back through the on PREM network to get out because they're the security stacks there. And I had a conversation with one of them and they said, like, Wow, you guys seem really concerned like really locking down that cloud environment. They said, I don't know. We're locking down the cloud environment to protect it from the hybrid, the corporate side And I was like, That's an interesting phrase, but you know, But definitely, you know, state sponsored security events, uh, just things along the lines of just not securing things just out of forgetfulness. The tools are definitely getting better, but the threats are getting bigger and bigger, and, you know, as we continue to Seymour state sponsored nefarious I t events, I think you know it's only gonna be more and more important that people stay on top of this. So, you know, people are working from home or right, So that also increases the security footprint that you can attack on. Hopefully, you know, people are doing a good job of maintaining their patching at home as well, because that could be another entrance into the system. But with that, you know, obviously, what are we seeing about the people end up working from home and remote. What are we seeing there with that kind of survey? So clearly? Yeah, obviously more people working from home and the survey results kind of told us that, you know, 46% of the companies have over half of their staff right now working remotely thean trist ing Part is, they think once we get through this by next summer, they feel that now 60% of the company's almost 60% of the company, so an increase of around 12% are going to have more than half their staff. So...

...there is a movement towards remote staff and we just saw it from Oracle. Just made an announcement just recently where they're moving part of their headquarters to Austin are predominantly. I think most of their headquarters to Austin. But what they've told their employees is you can work from here, Yuk unmoved, Austin, or you can work from home. We don't care. It's working A W s three event conference. They talked about how this is just shifted them completely as faras. They don't care where people work there, you know, This experiment for them of remote workers has been productive for them. It has worked for them and they don't see going back to a model where everybody has to live in Seattle. So we're seeing a lot of that go through, and that is going to create more concerns. But I think, you know, the stronger your C So is at looking at this entire environment and putting in those controls like you alluded to to make sure you lock it down. Make sure you have that patching is the answer. But, you know, like you mentioned state state sponsored terrorism, state sponsored, uh, cyber security is a concern. Yeah, I had a conversation, I think, last year at this time that was a little bit before this year. It wasn't reinvent with Jeff Barr from AWS, and I was asking him about security, and he's obviously been well ahead of it. He's a big advocate of zero client type systems, so he doesn't even carry a device anymore. All it is is just a thin devices that is using to access, uh, desktop computers. And I think we're going to see more and more of that as well. And I don't know if you saw there was. I came across an interesting article where the state of Hawaii is trying to lure people to move their toe work remote So everybody is in on the game. So it z a. I wouldn't mind working from life except for the times. Don't change. I I looked at my wife and said, Well, my daughter is a junior in high school. We could do this,...

...shouldn't go for it, But, yeah, why not? If you're young and go for exactly now, obviously, security remote workforce. What are some of the other technologies that cloud related, of course, that that these enterprises air focusing on. So what the survey kind of showed us is there's really four distinct technologies that air rising to the top as far as where the focus, our and they are data management analysis. We talked a little bit about that edge. Computing is another one. Third one is content delivery network. So how do I start to distribute my data differently out there? And that's not just the media and entertainment business and then fourth multi cloud solution. So those were really the big Fouras faras, where enterprises air kind of focus as those technologies that they're going to focus on. Yeah, let's talk a little bit about EJ competing for a second because I think, you know, sometimes there's different ways to look at that. Is there anything specific because, you know, like if you look at what the cloud providers they're doing, they're providing compute closer to the customers. But then they're also providing platforms to be able to move the compute on Prem, sometimes the most rugged remote locations as well. So they're looking at kind of both of those or where do you think they're spending more time on that edge and for what use cases? And what I'm seeing is from an edge computing perspective is a lot of how do we apply machine learning at the source of data pulling data in how doe I move some of that computation there and then on Lee, send the data back to your central, whether it's to your data center cloud. But how do I start to distribute the compute capability so that makes sense so that I get answers back to where they're needed. So if you're thinking about I p surveillance, do I need to bring it all the way back to a corporate headquarters and have all the analysis there? Or do I start to raise the alarms right where those I p cameras are and make decisions of? Is that a...

...threat? Or is that not? Because sometimes milliseconds matter. Oh, yeah, particularly manufacturing. It's very critical. We have some clients that have been trying toe work on this model, the cloud and an edge computing for, particularly for vision. So it's pretty neat. I think they're all dedicated to it. Aziz. Well, so we're seeing a lot more edge computing solutions, and then hopefully that the content distribution. I think it's really interesting to with the advent of five G coming along, it's going to get more and more interesting. There Yeah, I know the telephony companies as well as some of the cable companies are really looking into five G and how they could take advantage of both edge computing. Providing some of those resource is whether it's into manufacturing, whether it's oil and gas. Ah, lot of those different verticals they're trying to figure out what they're playing is in within that so that they could take advantage of all this data that's being produced from edge. Oh, yeah, yeah. And then that's more data management as well. Well, so kind of, whether your overall thoughts what kind of what we start to wrap this up of, of what we're seeing and where we're going. Anything you would like to leave us with? Well, we're going to run this survey again, probably around February, so I would look for the next report out by the end of the spring timeframe to see what's really changed. What I'm interested in understanding, though, is one have budgets changed. Number two, have we fixed the security, or at least do we have a better handle on security and then third, how are we gonna support remote employees and then probably a final like how all of this kind of blends together and does that change? I t is focused, Aziz. We look at companies have had to change because of Cove it and they had to redo their model. At least if they want to survive, they have to redo their model. How is I t going to change their model going forward? What are they going to look...

...like? And that's what we hope to capture the next survey. Well, that's great. I look forward Thio catching up with you after the next survey as well, and we can share those responses with our audience. So, Michael, I want to thank you again for joining the podcast this week. And listeners, please email is that cloud crunch at second watch dot com. We welcome your comments, suggestions and ideas until next time you've been listening to Cloud Crunch with Ian Willoughby and Skip Very. For more information, check out the blogged second watch dot com slash company slash blogged or reach out to second watch on Twitter.

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