Are We Moving Too Fast Into Cloud Computing?

Businesses need to take a hybrid approach when it comes to the cloud, Dell has said.

The firm’s cloud strategy leader, Gordon Davey, told V3.co.uk in an interview that cloud computing is “overhyped” and moving an entire IT infrastructure into the cloud would be an unrealistic goal.

Davey also believes that cloud vendors have enticed companies to make major shifts to the cloud without considering a model that works for their business.

“I think it’s definitely a case of cloud as a buzzword is overhyped. The idea of cloud for the sake of cloud doesn’t really stand out,” he said.

“The problem comes from customers that have seen the buzzword and want to get the benefits and are just jumping on the bandwagon because it is an industry hype thing, rather than actually evaluating the benefits that a true cloud can bring, and applying that to their business requirements.”

Davey outlined the need to take a more considered approach, adopting an IT strategy that mixes on-premise infrastructure with cloud components to harness the technology without escalating IT costs and complexity.

“The future is going to be hybrid. It’s horses for courses – putting the right workload on the right platform,” he said.

“It’s that balanced approach that I think we’re going to see much more often, rather than trying to put everything into the cloud and potentially failing.”

Davey’s position is unsurprising given Dell’s approach of acting as a ‘middleman’ between cloud service providers and end users, providing hardware, software, services and consultancy to enable businesses to use cloud computing in a way that works for them.

“We see our role as enabling the cloud industry, being that underlying technology,” he said, going on to detail Dell’s five pillar approach to acting as a cloud middleman rather than developing its own end-to-end cloud offering.

The strategy involves consulting on a customer’s cloud needs, helping provide cloud infrastructure, brokering deals between vendors and users, providing security, and managing how multiple cloud services are deployed in a single business.

Davey claimed that Dell’s strategy will help companies take a more tailored approach to cloud adoption, adding: “A properly deployed cloud for the correct workloads in hugely beneficial.”

Dell is not alone in promoting a hybrid approach to cloud adoption. Microsoft is adding hybrid cloud capability to the next version of Windows Server.

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IBM Buys SoftLayer

IBM has signed an agreement to purchase SoftLayer Technologies, as it looks to accelerate the build-out of its public cloud infrastructure. The company is also forming a services division to back up the push.

The financial details of the deal were not announced, but SoftLayer is the world’s largest privately held cloud computing infrastructure provider, according to IBM.

IBM already has an offering that includes private, public and hybrid cloud platforms. The acquisition of SoftLayer will give it a more complete in-house offering, as enterprises look to keep some applications in the data center, while others are moved to public clouds.

SoftLayer has about 21,000 customers and an infrastructure that includes 13 data centers in the U.S., Asia and Europe, according to IBM. SoftLayer allows enterprises to buy compute power on either dedicated or shared servers.

Following the close of the acquisition of SoftLayer, which is expected in the third quarter, a new division will combine its services with IBM’s SmartCloud. IBM expects to reach $7 billion annually in cloud revenue by the end of 2015, it said.

Success is far from certain: The public cloud market is becoming increasingly competitive as dedicated cloud providers, telecom operators and IT vendors such as Microsoft and Hewlett-Packard all want a piece. The growing competition should be a good thing for customers if it drives down prices. For example, Microsoft has already committed to matching Amazon Web Services prices for commodity services such as computing, storage and bandwidth.

Not all hardware vendors feel it’s necessary to have their own public cloud. Last month, Dell changed strategy and said it would work with partners including Joyent, instead of having its own cloud.

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