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Wednesday, Dec 11th

Hybrid cloud future bright as 73% of enterprises moving apps back on prem

Nutanix, Inc. (NASDAQ: NTNX), a leader in enterprise cloud computing, has announced the findings of its second global Enterprise Cloud Index survey and research report, which measures enterprise progress with adopting private, hybrid and public clouds. The new report found enterprises plan to aggressively shift investment to hybrid cloud architectures, with respondents reporting steady and substantial hybrid deployment plans over the next five years. The vast majority of 2019 survey respondents (85%) selected hybrid cloud as their ideal IT operating model.

For the second consecutive year, Vanson Bourne conducted research on behalf of Nutanix to learn about the state of global enterprise cloud deployments and adoption plans. The researcher surveyed 2,650 IT decision-makers in 24 countries around the world about where they're running their business applications today, where they plan to run them in the future, what their cloud challenges are, and how their cloud initiatives stack up against other IT projects and priorities. The 2019 respondent base spanned multiple industries, business sizes, and the following geographies: the Americas; Europe, the Middle East, and Africa (EMEA); and the Asia-Pacific (APJ) region.

This year's report illustrated that creating and executing a cloud strategy has become a multidimensional challenge. At one time, a primary value proposition associated with the public cloud was substantial upfront capex savings. Now, enterprises have discovered that there are other considerations when selecting the best cloud for the business as well, and that one size cloud strategy doesn't fit all use cases. For example, while applications with unpredictable usage may be best suited to the public clouds offering elastic IT resources, workloads with more predictable characteristics can often run on-premises at a lower cost than public cloud. Savings are also dependent on businesses' ability to match each application to the appropriate cloud service and pricing tier, and to remain diligent about regularly reviewing service plans and fees, which change frequently.

In this ever-changing environment, flexibility is essential, and a hybrid cloud provides this choice. Other key findings from the report include:

1. Apps are migrating away from the public cloud back to on-premises infrastructures. Nearly three-fourths (73%) of respondents reported that they are moving some applications off the public cloud and back on prem, and 22% of those users are moving five or more applications. These moves underscore, in part, enterprises' need for hybrid cloud's flexibility in allowing them to adapt their infrastructures based on their fluctuating requirements. App mobility is critical, and more than nine in ten (95%) respondents reported that it is essential or desirable to be able to easily move applications between cloud environments.

2.Security remains the biggest factor impacting enterprises' future cloud strategies. Well over half of 2019 respondents (60%) said that the state of security among clouds would have the biggest influence on their cloud deployment plans going forward. Similarly, data security and compliance represented the top variable (26%) in determining where an enterprise runs a given workload.

3. IT professionals deem the hybrid cloud the most secure of all the IT operating models. More than a quarter of respondents (28%) picked the hybrid model as the most secure — substantially surpassing those who chose a fully private cloud/on-prem model (21%) and more than twice as many as those who chose traditional (non-cloud-enabled) private data centres (13%). One reason for this is perhaps because enterprises can select the right cloud for their security requirements.

4. Nearly a quarter (23.5%) of respondents currently aren't leveraging any cloud technology today. Many companies still fall behind when it comes to enterprise cloud adoption. However, respondents' reported plans indicate that in one year's time, the number of enterprises with no cloud deployments will plummet to 6.5% and in two years' time will drop by more than half to 3%. Regionally, the Americas reported a slightly lower incidence of non-cloud use (21%) compared to EMEA (25%) and APJ (24%).

5. Enterprises are striving to integrate cloud computing with their digital transformation goals. Nearly three-quarters (72%) of 2019 respondents said digital transformation was driving their cloud implementations, and 64% said that digital transformation was the top business priority in their organisations.

"As organisations continue to grapple with complex digital transformation initiatives, flexibility and security are critical components to enable seamless and reliable cloud adoption," said Wendy M. Pfeiffer, CIO of Nutanix. "The enterprise has progressed in its understanding and adoption of hybrid cloud, but there is still work to do when it comes to reaping all of its benefits. In the next few years, we'll see businesses rethinking how to best utilise hybrid cloud, including hiring for hybrid computing skills and reskilling IT teams to keep up with emerging technologies."

"Cloud computing has become an integral part of business strategy, but it has introduced several challenges along with it," said Ashish Nadkarni, group vice president of infrastructure systems, platforms and technologies at IDC. "These include security and application performance concerns and high cost. As the 2019 Enterprise Cloud Index report demonstrates, hybrid cloud will continue to be the best option for enterprises, enabling them to securely meet modernisation and agility requirements for workloads."

Supporting Quote - Paul Ruinaard, Regional Director Sub-Saharan Africa at Nutanix

"The local and global results of the report speak directly to what we are seeing amongst customers within South Africa," states Paul Ruinaard, Regional Director at Nutanix Sub-Saharan Africa. "While the cloud has not moved off of the business agenda, South African customers are looking at how they can better modernise their on-premise datacentre's and are in some instances scaling back their use of public, private, and hybrid clouds. This is supported by a stated 9% decrease in cloud usage by local respondents, and a staggering 84% who stated that they have moved or are planning to move applications from the public cloud back onto their private IT infrastructure.

"Locally the fact that customers are eyeing out the cloud with more caution, is in part due to the fact that the costs of scaling workloads to the cloud have caught many South African customers unaware. Security is also a concern, as is performance, and lastly application delivery. The data by no means states that South Africans are halting their cloud journey, but instead they are approaching it more maturely and cautiously, it also states that they intend to grow their hybrid cloud use by 35% and decrease their data centre use by more than 50% by 2024. But when this will happen will depend on the fact that there is a lot of work to be done when it comes to deploying and delivering on cloud management tools that can assist customers with their migration and better manage the true cost of the cloud."

To learn more about the report and findings, please download the full "Nutanix Enterprise Cloud Index 2019" here

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