5 IT Initiatives to Jumpstart Your Digital Business in 2022

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As the leader of the tech team, CIOs are working through many different strategies and initiatives to drive new digital initiatives and improve existing ones. They are often pulled into new initiatives by business leaders and have to make hard decisions on how to support a business that is increasingly digitalised.

But there are five initiatives that all CIOs should have on their list for 2022 as they will deliver impactful results quickly and will make future investments more manageable and reliable.

In 2022, these 3 technology investments will give you a fast start:

  • AIOps. This will be an easy business case to build if you evaluate the benefits
  • Hybrid Cloud Management. Even if your business is racing towards the public cloud, you will have some hybrid cloud services.
  • Federated Data Management. Because your infrastructure and applications will be hybrid, your data needs to be too.

These strategic initiatives will also be crucial this year:

  • Resolve technical debt. Improve architectures and increase agility.
  • Improve Talent Recruitment and Employee Retention. Be aware that the “great resignation” is a reality
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Ecosystm Predicts: The Top 5 Trends for Data & AI in 2022

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Ecosystm VendorSphere – IBM: The Journey Ahead

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IBM has made several significant announcements in the last year and are clearly pivoting fast for continued success. 

In October, IBM held a series of analyst briefings to highlight their future strategies. This included a view into the “New IBM”, the re-branding of IBM Global Business Services as IBM Consulting, and the future roadmap for Kyndryl.

Going forward IBM is betting big on the dual capabilities of the Hybrid Cloud and Data & AI. Their strategy keeps a firm eye on the evolving needs of the enterprise with offerings such as the IBM Cloud Satellite, IBM Garage, and industry clouds.

Ecosystm Analysts, Tim Sheedy, Ullrich Loeffler, Matt Walker, Venu Reddy and Sash Mukherjee comment on IBM’s strategy going forward and the associated opportunities.  

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The Empire Strikes Back – Vendors Respond to Cloud Hype

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“Cloud is universal – everything is going to be on the cloud soon! If you are not moving to the cloud, you are going extinct! AWS, Microsoft and Google are going to rule the world!” This has been the hyped narrative for some time now. But watch out New World – the Old World is fighting back!

Traditional vendors like HP Enterprise, Cisco, and Oracle are all deploying strategies to remain relevant in the new world. For these vendors – especially for HPE and Cisco that come from a predominantly hardware background – the future is hybrid. They picture a world in which the data centre – either on-prem or in a co-located facility – thrives on, in tandem with the cloud. This is a reasonably good bet. For most large enterprises with a huge repository of applications and data sitting in the data centre, migrating everything to the cloud is a nightmare – fraught with risk and very expensive.

Ecosystm research shows that 32% of organisations have deployed containerisation – and this percentage will only grow. The ability for firms to toggle between data centre bare metal based applications and completely on-the-cloud ones is becoming more manageable by the day. This enormous flexibility allows a firm that has large compute needs to keep some stable workloads in a data centre, whether on-prem or co-located, while simultaneously using cloud-based workloads, optimising spends and performance.

Here is a glimpse into the strategies of three key vendors.

HPE’s ‘as-a-service’ Messaging is Spot on   

Two years ago, Antonio Neri boldly went where no HPE CEO had gone before, promising that HPE’s entire portfolio would be available ‘as-a-service’ within 3 years. At the recently concluded HPE Discover event, there were a flurry of announcements to showcase that GreenLake is indeed on its way to meet that ambitious goal in 2022.

HPE’s recent announcements show customers that GreenLake is an end-to-end solution for managing their IT infrastructure moving forward. It ticks all the boxes: providing flexibility and scalability; the advantage of using both data centre and cloud; and high manageability and security with a full suite of applications.

Examples are the partnership with Azure Stack HCI, to add to earlier ones with leading vendors like SAP, Citrix, and VMware. HPE is building a platform that provides customers with the comfort that they can adopt GreenLake and pretty much have access to any application they may choose to implement – offering full coverage from the Edge to the Cloud. It is extremely interesting that GreenLake allows the option of switching on and switching off processor cores as needed, and the customer pays based on usage. This is surely a first for the industry!

Another example is Lighthouse, which allows the customer to rapidly configure, and provision workloads based on dynamic needs. While all the hyperscalers provide similar services when the workload is on the cloud, Lighthouse allows the same flexibility and speed for cloud services which can be run in the data centre, on-prem, co-located, or even at the Edge.

A third example was the announcement of Project Aurora which will add an additional security layer from validating the input data all the way to verifying the workload at the start and then as it is running. It appears to use an AI/ML system that checks for unexpected behaviours to detect any kind of malware.

It makes good sense for HPE to push GreenLake and move to offering ‘everything-as-a-service’. As one of the incumbent enterprise hardware business leaders, this is a good response rather than to watch one’s business continue to shrink YoY. GreenLake is HPE’s way of futureproofing themselves and making sure they stay relevant in the new cloud world.

HPE Discover 2021

Cisco Secures the Hybrid Workplace

Cisco has been active launching Cisco Plus earlier this year, as their bridge to the as-a-service model with a network-as-a-service (NaaS) offering. Somewhat like GreenLake, Cisco Plus offers flexible consumption for compute, storage, and networking. They are committed to offering most of their portfolio as-a-service over time.

Cisco has shown some resilience in terms of revenue but has still been struggling to grow. After a steady growth since 2017, the revenues dropped by 7% in 2020 almost as a direct impact of COVID-19. The post-pandemic world has the potential of being a bigger threat for Cisco. Many estimates show the number of people working from home is likely to go up dramatically and Cisco’s key networking offering could rapidly become redundant. However, at Ecosystm we believe that the hybrid work model will be predominant.   

Cisco is also betting on a hybrid world. No matter where one works from, there are networking needs. Cisco’s focus, therefore, is on security – this will be on the mind of virtually any enterprise as it chalks out its future strategy. With a hybrid environment, making everything secure becomes more complex while continuing to be vital. Cisco has a heavy emphasis on Secure Access Service Edge (SASE) – the idea that the security envelope now has to be a flexible form that has a presence everywhere that the enterprise needs to be. This will make a lot of sense to most enterprises as they tread the hybrid path.

Cisco will offer a portfolio of tools to make it increasingly easier for customers to use multi-cloud, multi-vendor environments, offering the best of both worlds.

Oracle Incentivises Cloud Migration

Oracle has a different approach because they are trying to solve a different problem. They are competing with the hyperscalers, while fully acknowledging a hybrid world. However, as a company with less legacy in hardware, it makes sense for them to focus on migrating to cloud rather than on hybridisation. Oracle has just announced that they will subsidise existing customers who add cloud workloads with them, by providing discounts on the existing licensing fees that the customer is paying Oracle. This discount appears to be around 25% to 33%. In essence, this means that if a customer spends about USD 100k with Oracle on licensing and decides to start moving workloads to the Oracle Cloud worth somewhere between USD 300-400k, they can potentially write off the entire license fees they are currently paying!

Conclusion

There is a strong effort from every vendor right now to retain and consolidate their customer share and build a vision that convinces the customer that they are the way to go. For the traditional hardware players that vision is of a hybrid world – attractive to today’s large enterprise. For the likes of AWS, Microsoft, Google, and Oracle it is all about moving the customer to their cloud. The assumption of course is that moving someone to your cloud will lead to more of your apps being used by the customer. For the hardware vendors like Cisco and HPE, it is all about moving the customer to their own platforms which empower hybridisation. In all cases, a necessary component is to offer ‘everything-as-a-service’ upending the traditional models of selling.

In my opinion, with time the IaaS portion of the cloud is likely to gradually devolve into something like a utility. There will be a lot of upheavals and market disruption before we get there, but eventually, software and other services are likely to stand separate from the infrastructure provider. All the vendors are therefore depending on capturing the customer at the platform-as-a-service (PaaS) level, but even this is likely to get commoditised over time. Eventually, the winners will be disparate providers of the best applications for different functions. Meanwhile, we are in for an extremely interesting ride as we see all the vendors jockeying for space!

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Ecosystm VendorSphere: HPE Discover

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Two years ago at Discover, HP Enterprise’s President and CEO, Antonio Neri promised that all of HPE’s portfolio would be available ‘as a service’ within three years.

At the current Discover virtual events, HPE made a series of announcements to showcase that GreenLake is on its way to meet that ambitious goal in 2022. HPE continues to evolve their enterprise capabilities, as is demonstrated by their acquisitions of Determined AI and Zerto.

Ecosystm Advisors, Alan Hesketh, Darian Bird, and Niloy Mukherjee comment on how HPE is preparing for the Hybrid world and the key announcements at HPE Discover, 2021 including GreenLake, Lighthouse, and Aurora.

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BHP’s Dual Cloud Digital Transformation Strategy

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BHP – the multinational mining giant – has signed agreements with AWS and Microsoft Azure as their long-term cloud providers to support their digital transformation journey. This move is expected to accelerate BHP’s cloud journey, helping them deploy and scale their digital operations to the workforce quickly while reducing the need for on-premises infrastructure.  

Ecosystm research has consistently shown that many large organisations are using the learnings from how the COVID-19 pandemic impacted their business to re-evaluate their Digital Transformation strategy – leveraging next generation cloud, machine learning and data analytics capabilities.

BHP’s Dual Cloud Strategy

BHP is set to use AWS’s analytics, machine learning, storage and compute platform to deploy digital services and improve operational performance. They will also launch an AWS Cloud Academy Program to train and upskill their employees on AWS cloud skills –  joining other Australian companies supporting their digital workforce by forming cloud guilds such as National Australia Bank, Telstra and Kmart Group.

Meanwhile, BHP will use Microsoft’s Azure cloud platform to host their global applications portfolio including SAP S/4 HANA environment. This is expected to enable BHP to reduce their reliance on regional data centres and leverage Microsoft’s cloud environment, licenses and SAP applications. The deal extends their existing relationship with Microsoft where BHP is using  Office 365, Dynamics 365 and HoloLens 2 platforms to support their productivity and remote operations.

Ecosystm principal Advisor, Alan Hesketh says, “This dual sourcing is likely to achieve cost benefits for BHP from a competitive negotiation stand-point, and positions BHP well to negotiate further improvements in the future. With their scale, BHP has negotiating power that most cloud service customers cannot achieve – although an effective competitive process is likely to offer tech buyers some improvements in pricing.”

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Can this Strategy Work for You?

Hesketh thinks that the split between Microsoft for Operations and AWS for Analytics will provide some interesting challenges for BHP. “It is likely that high volumes of data will need to be moved between the two platforms, particularly from Operations to Analytics and AI. The trend is to run time-critical analytics directly from the operational systems using the power of in-memory databases and the scalable cloud platform.”

“As BHP states, using the cloud reduces the need to put hardware on-premises, and allows the faster deployment of digital innovations from these cloud platforms. While achieving technical and cost improvements in their Operations and Analytics domains, it may compromise the user experience (UX). The UX delivered by the two clouds is quite different – so delivering an integrated experience is likely to require an additional layer that is capable of delivering a consistent UX. BHP already has a strong network infrastructure in place, so they are likely to achieve this within their existing platforms. If there is a need to build this UX layer, it is likely to reduce the speed of deployment that BHP is targeting with the dual cloud procurement approach.”

Many businesses that have previously preferred a single cloud vendor will find that they will increasingly evaluate multiple cloud environments, in the future. The adoption of modern development environments and architectures such as containers, microservices, open-source, and DevOps will help them run their applications and processes on the most suitable cloud option.

While this strategy may well work for BHP, Hesketh adds, “Tech buyers considering a hybrid approach to cloud deployment need to have robust enterprise and technology architectures in place to make sure the users get the experience they need to support their roles.”

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