Start-Ups, Banks and Healthcare Providers All Play Pivotal Role in Cloud Adoption
NEW YORK, NY — At CapRE’s Seventh Annual Data Center Summit, we gathered a panel of regional insiders for a discussion on The End-User Approach to On-Prem, Hybrid, the Cloud, and Tomorrow’s Compute Needs and Initiatives. While much of the conversation focused on which applications should go where, moderator David Spiewak, Managing Principal at DJS Group LLC and Next Tier HD took some time to ask the panelists for their latest observations. What are they seeing out in the field? What is driving demand for Cloud architecture?
Panelist Josh Williams, Vice-President of Enterprise Sales & Engineering at SingleHop, an INAP Company chimed in first. “I think that the real drivers are customers like start-ups. That’s a no-brainer,” he replied. “They are building applications that are built for the Cloud. We’ve also seen start-ups get to, we’ll call it a “scale-point” and then retract as well.”
However, Williams thinks think that customers who are looking to leverage some of the platform capabilities that Amazon and Azure offer are also responsible for a big chunk of demand. “As well as Google, we’re seeing an uptick in Google as well – where I can write a piece of code, get some data in, get some data out, and get very quick results,” he clarified. “It’s maybe not important data, but it’s decision-making data. Analytics or whatever that may be. So those are areas where we’re seeing customer say, You know what, on-premise will never compete, because it will cost me too much to run a platform like this, whether it’s running open stack, whether it’s running even Azure stack on-premise.”
“There is still a human aspect of managing that and putting it all together, and then keeping those expertise aligned,” continued Williams. “The rate at which Amazon innovates at, there’s nobody right now, with the exception of a few, that can really keep up with that innovation. And they’ve targeted developers, but now, if you think of, even banks and healthcare providers, they’re starting to build their own homegrown analytics.”
“Those are great platforms for those. And the people are coming out of college trained to use those tools,” he concluded. “So there’s a little bit of a learning curve, especially in, I’ll call it, industries that are not heavily regulated.”
At that point, Modertor Spiewak interjected to seek some clarification. “So do you think that some of the larger, older organizations with legacy applications in which the cost of re-writing the application to make them run more efficiently in the Cloud is [keeping] them from doing it?” he asked Williams.
“Yeah, think about it. If you lived in your house for 50 years, how easy would it be to move out?” asked Williams in response. “It’d be pretty difficult. But if you moved one room at a time, you can start making efforts to, I’ll call it “monetize your facilities” or “monetize your applications” or deliver things differently. I think that someone with a lot of luggage does have a harder time moving out to a platform in some cases. That’s why email was one of the first things to go first. It’s super easy. Google and Office 365 has made it so easy for a traditional exchange customer to just move those things out.”
For more coverage of this panel, check out earlier CapRE Insider Reports: