Market View 10

Vadim Hiekin

Senior Director Cloud Architecture

MAJOR ERP VENDOR

Market View 10

Vadim Hiekin

Senior Director Cloud Architecture

MAJOR ERP VENDOR

This complex setup involved numerous development and operations teams, potentially numbering in the hundreds, many of whom are tasked with managing costs.

How has your organisation approached the decision around cloud data infrastructure, with relation to public v private cloud services?

As a leading ERP vendor, we leveraged three primary cloud services in conjunction with data centres, creating a multifaceted environment that often left teams scrambling to keep pace. This complex setup involved numerous development and operations teams, potentially numbering in the hundreds, many of whom are tasked with managing costs. The prevailing assumption was that cloud services would be more cost-effective. However, the challenge lies in accurately accounting for the labour and management inefficiencies that arise when deployments are mishandled, particularly when a 'lift and shift' strategy is employed for cloud migration.

This approach is arguably the least effective way to transition to the cloud, and it can ultimately prove more costly than utilising a data centre or a colocation provider. This is primarily because it contradicts the intended use of cloud services. In many instances, there is minimal re-architecture, which underscores the relative immaturity of this sector. The result can be costly errors or wastage, such as when resources are left running that later prove to be of no value.

The market is saturated with tool vendors, yet few offer actionable advice. Furthermore, there is a noticeable lack of integration between data centres and hyperscalers, with each operating as standalone entities. This lack of synergy exacerbates the challenges faced in this rapidly evolving landscape.

What are the core challenges that IT leaders face in terms of cloud infrastructure in this immature landscape?

The primary challenge lies in the design and architecture of software. When developing for the cloud, the software must be utility-based, scalable, and efficient.

On the other hand, the current serverless models can offer significant cost savings if they align with your performance needs. With serverless technology, you only pay for what you use. There's no need for a database administrator (DBA) or system administrators to manage the hardware or software. While this is advantageous, it's important to note that it still necessitates considerable administration, maintenance, and expertise.

In essence, while serverless models can streamline operations and reduce costs, they do not eliminate the need for skilled management and maintenance. Therefore, it's crucial to ensure that the necessary knowledge and resources are in place to effectively utilise these technologies.

With serverless technology, you only pay for what you use. There's no need for a database administrator (DBA) or system administrators to manage the hardware or software.

The emergence of innovative tools, such as products capable of dynamically implementing changes in a cloud landscape, is particularly exciting. These tools utilise AI to generate suggestions and execute them, targeting areas such as unused disks, IP addresses, and under-utilised virtual machines. This could translate into millions of dollars in savings through suggested configuration changes.

What are the main trends within your industry that are shaping the priorities for technology innovation or vendor differentiation in your organisation?

Every hyperscaler will assure you of their potential to save you money, recognising the critical importance of cost-effectiveness. The emergence of innovative tools, such as products capable of dynamically implementing changes in a cloud landscape, is particularly exciting. These tools utilise AI to generate suggestions and execute them, targeting areas like unused disks, IP addresses, and underutilised virtual machines. This could translate into millions of dollars in savings through suggested configuration changes.

However, there's a downside to this approach. The sheer volume of suggestions can be overwhelming, potentially numbering in the thousands, driving the need for automation. Few have the time to sift through these reports, where each minor change might save a modest $200 here or $50 there. Furthermore, hyperscalers don't simplify the process of controlling the types of virtual machines customers can deploy. This lack of control leads to a free-for-all approach, resulting in issues due to the absence of uniformity.

Vadim Hiekin is a distinguished Enterprise Technology Leader, recognized for his innovation-driven approach and successful execution of strategic, mission-critical technology initiatives. Vadim’s repertoire spans enterprise architecture, software development, as well as data center and cloud infrastructure.