Public cloud computing technology has come to light, and many people who were initially hesitant are now riding the wave of snowcloud computing. Oracle CEO Larry Ellison commented in 2008: “What is cloud computing? … I don’t know what people are talking about. I mean, it’s really nonsense.” Fast forward to October 2017, when Oracle held its Open World Conference this year, the theme was “The Ultimate Cloud Experience”.
We have entered an age where no tech giant can afford to ignore the invincible power of cloud computing. Big tech companies like Microsoft, Google, IBM, Alibaba, and yes, Oracle have realized that the cloud is here, it’s real, and they’re already after Amazon.
When Amazon first launched Amazon Web Services (AWS), many thought it would only attract startups. But the convenience, speed, and flexibility offered by the public cloud has proved so attractive that even the largest companies have shifted an increasing percentage of their computing workload to the cloud.
The explosive growth of AWS surprised the market. In April 2015, Amazon launched its first AWS-generated cloud computing revenue for 2014. It found that its cloud computing unit had a turnover of about $ 5 billion this year, and surprisingly, Amazon’s most profitable division. Since then, AWS’s revenue has nearly tripled in two years. So did Amazon’s market capitalization.
The 2015 AWS revelation was a watershed moment. Like Oracle, every other major tech company felt the need to enter the cloud game faster and began to double its cloud investment. These companies have deep pockets and they are always playing: the cloud opportunity is too big to ignore.
Every Company Is A Software Company That Needs A Snowcloud
Why has the cloud become indispensable for so many companies? Because virtually every company has become a software company, and all of them need to get their software to more people faster than ever before.
Even in traditional industries, the company’s competitiveness is increasingly dependent on the quality of its software. Automakers like Tesla often release new software to power the next generation of smart cars. Airlines need fast, easy-to-use software to compete with aggregators and run more bookings on their sites. Restaurants need well-designed software to ensure a smooth meal delivery experience (more than half of Domino Pizza orders now come from the Internet).
Software companies have better options than negotiating data center leases, buying and installing hardware, and managing and securing their infrastructure. With Public snowcloud, they can easily rotate not only a virtual machine with an API call, but also access numerous related services and building blocks (such as RDS, Lambda, Redshift, GKE, etc.) that are basically impossible To copy. at home
There Is No Time To Lose
Due to fierce competition, the requirements for software products are constantly changing, so much so that companies need to issue updates daily or several times a day. The rise of CI (Continuous Integration) and CD (Continuous Deployment) is a direct result of today’s rapidly changing software requirements. Traditionally, code writers and code enforcers worked separately in Silos, which hindered the deployment of new software. Now, to CI / CD workflow, many companies have integrated their development and operations groups through the “DevOps” role. DevOps helps businesses unveil new features seamlessly and leverages the flexibility and global nature of the public cloud.
Furthermore, the advent of the container and micro-services software architectures has enabled enterprises to issue instant updates, increase availability upon increased demand, and make efficient use of public snowcloud. Containers provide an unparalleled level of portability, and micro-service architectures are naturally distributed, allowing workloads to be distributed across physical locations. Portability has shown initial value in development, staging, and production. I’m sorry hybrid systems, which surround the public cloud for parts of an application system and shared infrastructure for physical, on-premises, or other parts, have become commonplace, for example, for security purposes. Provide separation facility for.
Together, these trends have led to the use of multiple clouds, or “multiple clouds.” In particular, as the public cloud adopts local support for Kubernetes, the speed of the multi-cloud should continue to increase.
Enter The Multi- Snowcloud Era
Given the intensity of competition between the growing number of public cloud options and tech giants, we are seeing rapid changes in the multicolored among many large organizations. As Armon Dadgar, co-founder and co-chief technology officer at HashiCorp, confirms, “almost every Fortune 500 account we hire. Yes, customers are planning or using multiple cloud providers. ”
There Are Several Factors Driving This Trend:
Avoid Locks And Save Costs
AWS has done a great job of winning the hearts and minds of developers by enabling a very smooth on-ramp for workloads, keeping prices low and flexible, and constantly launching new services. As large companies have rapidly adopted AWS, many people have begun to worry about the high annual costs and reluctant reliance on the service. Many CIOs and CFOs have been burned through vendor locks before and are now encouraging their organizations to move to multiple clouds in order to keep prices honest and save themselves from over-reliance on AWS. can go.
As the public cloud market evolves, players are trying to differentiate themselves effectively. Where AWS appeals to developers, Google snowcloud Platform (GCP) has placed a heavy bet on data scientists and analysts with huge investments in tools and hardware to improve the workload based on machine learning. Microsoft has tried to compete by appealing to traditional users of Exchange, Outlook, SharePoint, and MySQL Server. Alibaba’s Alyon is emerging as a logical choice for Chinese companies expanding globally. And one would imagine that Oracle would clarify its true nature in the workload of the OLTP database in its cloud. With so many different options, it’s not likely to be a “one size fits all” solution for the average business, and it’s also promoting the use of multi-cloud strategies.
Responding To Cloud Provider Pressure
Many of the companies I’ve talked about have also mentioned that part of their migration to AWS MultiCloud is due to top-down pressure from cloud providers. Microsoft, in particular, has been effective in converting existing traditional accounts into users of its Azure cloud service with concessions and discounts. In some cases, even large clients can use force. For example, many GGV portfolio companies whose solutions reside on AWS are strongly recommended by retail users to provide a mirroring service in another cloud because they have to share their data with Amazon due to fear of competition. But prefer not to be safe.
Flexibility, Redundancy, Performance, And Data Autonomy
The use of multiple cloud service providers enables deployment architectures that are flexible for failures such as the major S3 shut down earlier this year. In addition, enterprises often run on state-of-the-art performance, taking advantage of a wide variety of dispersed, in some cases geographically specific, snowcloud facilities to improve on-demand delivery to remote markets at a relatively low cost. For example, AWS was the first to open a region in the Middle East (Bahrain), helping users trying to reach that geography. Data autonomy regulations, such as the GDPR in Europe, are forcing global companies to adapt to multiple clouds, helping to limit data to local areas.
M&A And Stability
Many companies now default to more than one cloud. Acquired companies often introduce new cloud providers into the mix. Furthermore, as Dadgar has seen with many of HashiCorp’s clients, MultiCloud is “the reality of many decision-makers, business deals, and M&A.”
Access To Resources
Cloud infrastructure also offers another benefit: access to the latest hardware. Many technology companies today need graphics processing units (GPUs) and solid-state drives (SSDs) to enhance their capabilities. Machine learning aids But this type of hardware is becoming increasingly difficult for individual companies to access, as cloud giants gain access to early, sometimes specialized, state-of-the-art hardware. Therefore, companies that may need state-of-the-art GPUs to run their neural networks have no choice but to look for available capabilities, which is why so many people work with more than one cloud. Do
Startups can thrive if they take advantage of the multi-cloud trend.
The multi-cloud world can be scary and confusing, especially for companies in traditional industries that are simply adopting software as a differentiator. However, the benefits are hard to ignore. A recent RightScale survey found that 85% of companies now have a multi-cloud strategy, up from 82% in 2016. Startups that promise cloud neutrality (not affiliated with any particular vendor) will benefit significantly in this new battlefield.
For Startups Riding Multicloud View, Some Of The Opportunities Are:
DevOps And CI / CD Automation
Large enterprises are increasingly striving to standardize the process around continuous integration and delivery. DevOps tools enable orchestration in the clouds. By standardizing these processes, companies can adopt a multi-cloud strategy using the best provider for each workload. GGV’s portfolio companies HashiCorp, snowcloud, and LaunchDarkly are making great strides in this area.
Application Monitoring And Visibility
Transfer the workload of the application between different clouds with confidence To do this, surveillance and visibility have become important. Detecting performance issues within architectures based on containerized micro-services adds to the challenge. Companies like DataDog, Lightstep, SignalFx, Netsil, Instana, and others shine the light needed for companies to run multi-cloud strategies.
Security And Compliance
Going to the clouds is unbearable. But an important point for large organizations, especially for sensitive and regulated industries, has been the fear of data loss. This concern is heightened when companies consider using a multi-cloud strategy. For container applications, companies like Stackrox, Twistlock, and Aqua focus on providing protection. Companies such as Evident.io and Vault (a product of HashiCorp) are responsible for regulating and enforcing cloud policies.
Big Data-Driven Management, Automation, And Applications Snowcloud
Building and maintaining large data infrastructure (such as Hadoop, Spark, Kafka, etc.) is expensive. As most of this moves to the cloud, especially when multiple clouds are considered, tools to granularly improve and manage data and infrastructure will become key. Unravel Data and Cerebro Data head a long list of innovative companies in the region. Meanwhile, as cloud providers offer more powerful and sophisticated data housing and analytics tools, companies recognize the risk of lock-in in adopting these tools, which increases the popularity of companies like Snowflake. , Which theoretically gives the client too much control. We believe this is an area with many opportunities. Similarly, as the use of containers grows in popularity, managing storage for state applications will become more difficult. Companies like Portworx are solving this problem and we see a lot of potential for new companies.
Application Delivery And Intelligent Workload Management
Innovative applications cover many data centers and geographies, especially when companies are considering multi-cloud strategies. Companies such as GGV’s portfolio company NS1 ensure efficient application delivery, while modern CDNs such as Fastly and Cloudflare help increase workloads in a distributed and heterogeneous infrastructure. Similarly, solutions that make it easy to deploy and maintain customized, packaged applications in the cloud and enable portability across the clouds are, we think, very powerful.
Cloud service providers have done a great job of locking down their customer data with se. Organized services. Clearly, there is an opportunity with cross-cloud data replication and portability, both to prevent DR and block. Companies like Data, Igneous Systems, Rubrik, and Cohesity make great promises here.
Database Matches Cloud And Micro Services
Today, traditional relative databases have moved to the cloud. But they were not created for the scale, the divided nature, and the diversity of the multi-cloud world. NoSQL databases such as Cassandra and MongoDB Cloud are well suited for local applications, but micro-service architectures are still a burden on existing databases. More innovation is likely to come here to help better manage distributed transactions and fault handling.
At GGV, we’re excited to help companies that can make sense of and value this complex new ecosystem. Entrepreneurs who understand, accept, and specialize in navigating this multi snowcloud world will have the opportunity to be victorious in multi-cloud wars. Contact us with your MultiCloud Startups and share your thoughts on this dynamic opportunity!
Special thanks to Armon Dadgar, Edith Harbaugh, Kris Beevers, Bassam Tabbara, Crystal Huang, Daniel Lopez, and Semil Shah for their advice, detailed reviews, and edits.
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