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!

Cloud Insights
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Ecosystm RNx: Top 10 Global Cybersecurity Vendor Rankings

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In this edition of Ecosystm RNx – an objective vendor ranking based on in-depth, quantified ratings from technology decision-makers on the Ecosystm platform – we rank the Top 10 Global Cybersecurity Vendors.

If you are an End User, you are having to re-evaluate your Cybersecurity risks and measures as both solution capabilities and the threat landscape become more complex. In a fragmented market, it is difficult to select the right Cybersecurity partner to safeguard your organisation. This vendor ranking will help you evaluate your buying decisions based on key evaluation ratings by your peers across a number of key metrics and benchmarks, including customer experience.

If you are Cybersecurity Vendor, you are aware that end users are looking more for Cybersecurity services than solutions – this is an opportunity to understand how your customers rate you on capabilities and their overall customer experience.

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Ecosystm RNx: Top 10 Global AI & Automation Vendor Rankings

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Ecosystm RNx is an objective vendor ranking based on in-depth, quantified ratings from technology decision-makers on the Ecosystm platform. In this edition, we rank the Top 10 Global AI & Automation Vendors.

If you are an End-User, you are realising that the right investments in Data & AI now will be the key to your future success. This vendor ranking will help you evaluate your buying decisions based on key evaluation ratings by your peers across a number of key metrics and benchmarks, including customer experience.

If you are an AI & Automation Vendor, it’s an opportunity to understand how your customers rate you on capabilities and their overall customer experience.

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Artificial Intelligence Insights
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Ecosystm RNx: Top 10 Global Cloud Vendor Rankings

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In this first edition of Ecosystm RNx we rank the Top 10 Global Cloud Vendors.

Ecosystm RNx is an objective vendor ranking based on in-depth and quantified ratings from technology decision-makers on the Ecosystm platform.  

If you are an technology user, this Cloud Vendor ranking will help you evaluate your buying decisions based on key evaluation ratings by your peers across a number of key metrics and benchmarks, including customer experience.

If you are a Cloud Vendor, this is an opportunity to understand how your customers rate you on capabilities and their overall customer experience.

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Industries of the Future – Ecosystm Bytes

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Industries continue to innovate and disrupt to create and maintain a competitive edge – and their technology partners evolve their solution offerings to empower them.

We bring to you latest industry news from the Healthcare, Financial Services, Retail, Travel & Hospitality and Entertainment & Media industries to show you how organisations are leveraging technology. Find out more about organisations such as Services Australia, Paypal, Walmart, Zara and Amex – and how tech providers such as IBM, Oracle, Google and Uplift are supporting organisations across industries.

View the latest Ecosystm Bytes on Industries of the Future below, and reach out to our experts if you have questions.


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For more ‘byte sized’ insights click on the link below

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Fueling Asia’s Innovation Ecosystem

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Since the start of this millennium, no region has transformed as much as Asia. There has been significant paradigm shifts in the region and the perception that innovation starts in the US or in Europe and percolates through to Asia after a time lag, has been shattered. Asia is constantly demonstrating how dynamic, and technology-focused it is. This is getting fueled by the impact of the growing middle class on consumerism and the spirit of innovation across the region. The region has also seen a surge in new and upcoming business leaders who are embracing change and looking beyond success to creating impact.

What is Driving Innovation in Asia?

The “If you ain’t got it, build it” attitude. One of the key drivers of this shift is the age of the average population in Asia. According to the UN the Asia Pacific region has nearly 60% of the world’s youth population (between the age of 17-24). With youth comes dynamism, a desire to change the world, and innovation. As this age group enters the workforce, they will transform their lives and the companies they work in. They are already showing a spirit of agility when it comes to solving challenges – they will build what they do not have.

The Need to enable Foundational Shifts. The younger generation is more aware of environmental, social and governance issues that the world continues to face. Many of the countries in the region are emerging economies, where these issues become more apparent. COVID-19 has also inculcated an empathy in people and they are thinking of future success in terms of impact. The desire to enable foundational shifts is giving direction to the transformation journey in the region. The wonderful new paradigm that is the Digital Economy allows us to cut across all segments; and technology and its advancements has immense potential to create a more sustainable and inclusive future for the world. 

Realising the Power of Momentum. The pandemic has caused major disruptions in the region. But every crisis also presents an opportunity to perhaps re-imagine a brighter world through a digital lens.  The other thing that the pandemic has done is made people and organisations realise that to succeed they need to be open to change – and that momentum is important. As organisations had to pivot fast, they realised what I have been saying for years – we shouldn’t “let perfect get in the way of better”. This adaptability and the readiness to fail fast and learn from the mistakes early for eventual success, is leading to faster and more agile transformation journeys.     

Where are we seeing the most impact?

Industries are Transforming. There are industries such as Healthcare and Education that had to transform out of a necessity and urgency brought about by the COVID-19 pandemic. This has led to a greater impetus for change and optimism in these industries. These industries will continue to transform as governments focus significantly on creating “Social Safety Nets” and technology plays a key role in enabling critical services across Health, Education and Food Security. Then there are industries, such as the Financial Services and Retail, that had a strong customer focus and were well on their digital journeys before the pandemic. The pandemic boosted these efforts.

Ecosystm Industry Optimism Index

But these are not the only industries that are transforming. There are industries that have been impacted more than others. There are several instances of how organisations in these industries are demonstrating not only resilience but innovation. The Travel & Hospitality industry has had several such instances. As business models evolve the industry will see significant changes in digital channels to market, booking engines, corporate service offerings and others, as the overall Digital Strategy is overhauled.

Technologies are Evolving. Organisations depended on their tech partners to help them make the fast pivot required to survive and succeed in the last year – and tech companies have not disappointed. They have evolved their capabilities and continue to offer innovative solutions that can solve many of the ongoing business challenges that organisations face in their innovation journey. More and more technologies such as AI, machine learning, robotics, and digital twins are getting enmeshed together to offer better options for business growth, process efficiency and customer engagement. And the 5G rollouts will only accelerate that. The initial benefits being realized from early adoption of 5G has been for consumers. But there is a much bigger impact that is waiting to be realised as 5G empowers governments and businesses to make critical decisions at the edge.

Tech Start-ups are Flourishing.  There are immense opportunities for technology start-ups to grow their market presence through innovative products and services. To succeed these companies need to have a strong investment roadmap; maintain a strong focus on customer engagement; and offer technology solutions that can fulfil the global needs of their customers. Technologies that promote efficiency and eliminate mundane tasks for humans are the need of the hour. However, as the reliance on technology-led transformation increases, tech vendors are becoming acutely aware that they cannot be best-in-class across the different technologies that an organisation will require to transform. Here is where having a robust partner ecosystem helps. Partnerships are bringing innovation to scale in Asia.

We can expect Asia to emerge as a powerhouse as businesses continue to innovate, embed technology in their product and service offerings – and as tech start-ups continue to support their innovation journeys.


Ecosystm CEO Amit Gupta gets face to face with Garrett Ilg, President Asia Pacific & Japan, Oracle to discuss the rise of the Asia Digital economies, the impact of the growing middle class on consumerism and the spirit of innovation across the region.

Designed for change in a rising digital economy
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Zoom selects Oracle as Cloud Infrastructure Provider

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5/5 (6) The COVID-19 crisis has forced countries to implement work from home policies and lockdowns. Since the crisis hit, uptake of cloud communication and collaboration solutions have seen a dramatic increase. Video conferencing provider, Zoom has emerged as a key player in the market, with a rapid increase in user base from 10 million daily active participants in December 2019 to 200 million in March 2020 – a growth in the number of users of nearly 200%!

Security Concerns around Zoom

The rapid increase in user base and the surge in traffic has required Zoom to re-evaluate its offerings and capacity. The platform was primarily built for enterprises and now is seeing unprecedented usage in conducting team meetings, webinars, virtual conferences, e-learning, and social events.

The one area where they were impacted most is security. In his report, Cybersecurity Considerations in the COVID-19 Era, Ecosystm Principal Advisor Andrew Milroy says, “The extraordinary growth of Zoom has made it a target for attackers. It has had to work remarkably hard to plug the security gaps, identified by numerous breaches. Many security vulnerabilities have been discovered with Zoom such as, a vulnerability to UNC path injection in the client chat feature, which allows hackers to steal Windows credentials, keeping decryption keys in the cloud which can potentially be accessed by hackers and the ability for trolls to ‘Zoombomb’ open and unprotected meetings.”

“Zoom largely responded to these disclosures quickly and transparently, and it has already patched many of the weaknesses highlighted by the security community. But it continues to receive rigorous stress testing by hackers, exposing more vulnerabilities.”

However, Milroy does not think that this issue is unique to Zoom. “Collaboration platforms tend to tread a fine line between performance and security. Too much security can cause performance and usability to be impacted negatively. Too little security, as we have seen, allows hackers to find vulnerabilities. If data privacy is critical for a meeting, then perhaps collaboration platforms should not be used, or organisations should not share critical information on them.”

Zoom to increase Capacity and Scalability

Zoom is aware that it has to increase its service capacity and scalability of its offerings, if it has to successfully leverage its current market presence, beyond the COVID-19 crisis. Last week Zoom announced that that it had selected Oracle as its cloud Infrastructure provider. One of the reasons cited for the choice is Oracle’s “industry-leading security”. It has been reported that Zoom is transferring more than 7 PB of data through Oracle Cloud Infrastructure servers daily.

In addition to growing their data centres, Zoom has been using AWS and Microsoft Azure as its hosting providers. Milroy says, “It makes sense for Zoom to use another supplier rather than putting ‘all its eggs in one or two baskets’. Zoom has not shared the commercial details, but it is likely that Oracle has offered more predictable pricing. Also, the security offered by the Oracle Cloud Infrastructure deal is likely to have impacted the choice and it is likely that Oracle has also priced its security features very competitively.”

“It must also be borne in mind that Google, Microsoft and Amazon are all competing directly with Zoom. They all offer video collaboration platforms and like Zoom, are seeing huge growth in demand. Zoom may not wish to contribute to the growth of its competitors any more than it needs to.”

Milroy sees another benefit to using Oracle. “Oracle is known to have a presence in the government sector – especially in the US. Working with Oracle might make it easier for Zoom to win large government contracts, to consolidate its market presence.”


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Ecosystm Snapshot: Oracle Continues to Expand Global Cloud Footprint

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4.5/5 (2) In the Top 5 Cloud Trends for 2020, Principal Analyst Claus Mortensen observed that 2020 is a do-or-die year for Oracle if they wanted to remain as a key contender in the Cloud market. Mortensen said, “Oracle has not been able to break into Cloud in the same way as their competitors and has so far not made the same “leap of faith” into this area as similar companies have. Unless the company makes a clear decision about their Cloud strategy and succeeds in communicating it to the market in 2020, Oracle may quickly find itself more of a niche Cloud player going forward.”

Oracle’s intentions to remain one of the leading global Cloud providers becomes clear as they actively expand their global coverage. Last week Oracle announced that, as part of their ongoing regional expansion plan, they have added local regions in Jeddah (Saudi Arabia), Melbourne (Australia), Osaka (Japan), Montreal (Canada) and Amsterdam (The Netherlands). This expands the reach of Oracle’s Generation 2 Cloud to 21 independent locations, and Oracle intends to further add 15 locations by the end of 2020. At OpenWorld last year, Oracle had announced their plans to have Cloud sites dedicated to the enterprise market as well as government customers.

Dr Alea Fairchild, Principal Advisor Ecosystm, thinks that Oracle appreciates the needs of their enterprise customers. “Oracle understands the sensitivity of the enterprise to the location and availability of their data, which remains an issue with Cloud implementations involving large data sets. They have broken some ground as the first public Cloud vendor with data centres in Saudi Arabia, and are putting efforts in to offer a minimum of two regions in almost every country in which they operate,” says Dr Fairchild. “From a corporate user’s perspective, regional data management and appropriate licensing models are still sensitive spots when it comes to database management.”

Getting Ready for the Hybrid Cloud Market

Oracle also appears to be ramping up for the growing hybrid Cloud market. Ecosystm research shows that more than a third of global organisations have adopted the hybrid Cloud and this will only increase. Given the increased uptake of hybrid and multi-cloud environments, Oracle offers preconfigured links between Oracle and Microsoft Azure cloud regions in the eastern states of the US, London, and Toronto, as part of the Cloud interoperability partnership announced in June 2019. Last year, saw another mutually beneficial partnership between VMWare and Oracle, that supports their customers’ hybrid cloud strategies, allowing the VMware Cloud Foundation to run on Oracle Cloud Infrastructure. Organisations can also avail technical support for Oracle software running in VMware environments both in on-premise data centres and Oracle-certified cloud environments.

“Oracle’s Generation 2 Cloud is now available in 21 locations and is on track to have a total of 36 Cloud regions up and running by the end of the year,” adds Dr Fairchild.  “But when compared to AWS, Microsoft and IBM, Oracle still holds a fraction of the market share.  They can be seen as a niche infrastructure provider, but indeed the partnerships with Microsoft and VMware are set to help Oracle’s Cloud business make traction with companies that are adopting multi-cloud strategies.”

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Ecosystm Snapshot: Oracle acquires CrowdTwist to strengthen their customer experience portfolio

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5/5 (1) Oracle signed an agreement to acquire CrowdTwist,  a leading cloud-native customer loyalty solution provider for businesses. offering personalised customer experience. CloudTwist offers over 100 engagement paths and time-to-value to marketers providing a comprehensive view of the customer.

The news comes less than a month after Oracle and Deloitte Digital partnered to deliver Oracle’s Customer Data Platform (CDP) capabilities following which Oracle also announced updates to their CDP platform Oracle CX Unity, which brings together data from marketing and advertising systems to help organisations deliver experiences across the entire customer journey.

Oracle’s increased focus on CX

Oracle continues to build their CX capabilities, and it is looking to integrate CrowdTwist’s customer loyalty solution with their existing platforms. Commenting on Oracle’s acquisition, Ecosystm Principal Advisor Audrey William said, “CrowdTwist is a leader in the customer loyalty segment and knows how to build loyalty through a deeper data analysis and stickiness with various building blocks across the customer loyalty value chain. We could see Oracle’s services becoming more customer oriented through targeted marketing campaigns and customer journey mappings across the Unity, Eloqua and Responsys platforms.”

To drive the CX journey, organisations of all sizes are seeking management and lifetime value programs. CrowdTwist’s cloud loyalty solution fits into Oracle’s strategy and would offer benefits in support orchestration, derive intelligence on customer loyalty data and provide solutions to use the data for customer retention and marketing campaigns.

“Customer loyalty cannot be easily predicted as one has to analyse how customers are reacting at every touchpoint and how emotionally they are connected with the brand,” said William. “A very basic program will not suffice in this era of CX. Applications of machine learning and AI across the portfolio will help to accurately predict and tailor the best loyalty programs. Customers using Oracle’s Cloud CX portfolio of applications will be able to further analyse the data that has been captured to personalise their marketing campaigns.”

Upon the closure of the acquisition, the CrowdTwist team will join the Oracle Customer Experience (CX) Cloud organisation. This arrangement will help marketers personalise customer engagement and obtain a more thorough view of their loyalty programs.

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