Strategic Advisor

Hybrid Cloud Hasn’t Gone Away—In Fact, It’s More Popular Than Ever

As our community and company prepare for a VMworld this year like no other, I’ve been thinking about all the ways that we’ve been delivering on prior commitments featured on stage.

In many ways, all of these are fueling hybrid cloud growth and the digital business success many of our customers are experiencing.

Hybrid Cloud Trends

Nearly every organization has embraced public cloud services, and over the next two years, ESG expects a 45% increase in the number of organizations running more than 30% of their production applications on public cloud infrastructure. Because the move simply can’t happen all at once, hybrid cloud strategies are also accelerating.

hybrid cloud
ESG, Hybrid Cloud Trends: Strategies for Optimizing On-premises and Public Cloud Infrastructure- June 2019

The percentage of organizations committed to or interested in hybrid cloud strategies has risen at an amazing rate since 2017—from survey results show. And ESG believes on-premises is still the tip of the spear for most hybrid cloud strategies with 89% of organizations revealing they still expect to have a meaningful on-premises footprint in three years.

This may surprise you. But if you’ve been following my “Counterintuitively Fastest Path to App Modernizationseries, you know I’m not all that shocked because popular public cloud architectures make application migration challenging. That’s why even as application migrations determine hybrid cloud strategies, there is not one, single approach that every organization follows.

The ESG report quantifies some of the obstacles: Specifically, 31% reported the preparation work—including building the business case—for application migration with another 29% pointing to the process for redesigning and actually moving these applications to cloud-based platforms.

As businesses prepare for the next wave of application migration, which validates the idea that there is no one-size-fits-all approach, concludes ESG.

Adopting Cloud Differently with VMware

Enterprises need the maximum choice and fastest time to value with the lowest disruption that VMware digital innovation brings. And it’s only possible because our powerful software infrastructure and management stack can sit atop any physical infrastructure in any location to run all types of apps—traditional and modern—as well as a broad set of platform-as-a-service (PaaS) services.

If you wonder how our approach powers hybrid cloud, you don’t have to look much further than VMware Cloud on AWS. And also VMware Cloud on Dell EMC.

Hybrid Cloud ROI

An integrated cloud offering jointly developed by VMware and AWS, VMware Cloud on AWS gives customers a scalable solution to migrate and extend their on-premises VMware vSphere based environments to the public cloud. Simple. Efficient. Effective.

It’s hybrid cloud without the hassle of business disruption, application re-architecting to run natively in the public cloud, and investment in new cloud development and operations skills.

Organizations using it are already experiencing its benefits. A recent Forrester Consulting Total Economic ImpactTM (TEI) study examines the potential ROI enterprises may realize by deploying VMware Cloud on AWS.

  • Avoided application redesign,[1] totaling savings of $2.7M.
  • Reduced labor hours for operations, saving $1.2M.
  • Reduction in data center operating costs, totaling $1.4M.
  • Software and hardware savings of $3.2M.

Forrester’s interviews with four existing customers and subsequent financial analysis found that an organization based on these interviewed organizations experienced benefits of $8,622,701 over three years versus costs of $4,481,861, adding up to a net present value (NPV) of $4,481,861 and an ROI of 108%, wrote the authors.

Because our hybrid cloud approach is low-friction, no matter what decisions about refactoring, replatforming, rehosting, replacing, or retiring a particular application or system of apps are made, enterprises can efficiently migrate to cloud.

Another good example is our VMware Cloud on Dell EMC solution for data center and edge locations. At the edge, it empowers teams to manage infrastructure and apps remotely and at scale. For central IT, it supports the reliable delivery of infrastructure to field and branch locations without investment in mobile teams needing to be dispatched to fix issues onsite.

I wrote about the edge use case and two data center ones—modernization and evacuation with a co-location partner—when the solution debuted. Net-net, this solution dramatically simplifies the process of building a hybrid cloud.

I’ve been at VMware long enough to remember analysts and customers finding similar impressive results in the early days of vSphere. Saving customers money and time by reducing IT complexity is in VMware’s DNA.

Make the Impossible Possible

If you want the best infrastructure for your applications and operations, hybrid cloud delivers. If you’re still wondering how to get started, check out the full reports, customer ROI spotlights, or this recent post about VMware IT’s journey to a hybrid cloud solution.

And if you haven’t already, register for VMworld to discover what’s possible together.

[1] In modeling the benefits of avoided application rearchitecting, Forrester made the following assumptions: 75 applications migrated, supported by virtual machines at a ratio of 40 to 1. The average annual fully burdened salary of $130,000.