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The Cloudcast Podcast with Jeff Aden, Co-Founder and EVP at 2nd Watch

The Cloudcast’s Aaron and Brian talk with Jeff Aden, Co-Founder and EVP at 2nd Watch, about the evolution of 2nd Watch as a Cloud Integrator as AWS has grown and shifted its focus from startups to enterprise customers. Listen to the podcast at http://www.thecloudcast.net/2019/02/evolution-of-public-cloud-integrator.html.

Topic 1 – Welcome to the show Jeff. Tell us about your background, the founding of 2nd Watch, and how the company has evolved over the last few years.

Topic 2 – We got to know 2nd Watch at one of the first AWS re:Invent shows, as they had one of the largest booths on the floor. At the time, they were listed as one of AWS’s best partners. Today, 2nd Watch provides management tools, migration tools, and systems-integration capabilities. How does 2nd Watch think of themselves?

Topic 3 –  What are the concerns of your customers today, and how does 2nd Watch think about matching customer demands and the types of tools/services/capabilities that you provide today?

Topic 4 – We’d like to pick your brain about the usage and insights you’re seeing from your customers’ usage of AWS. It’s mentioned that 100% are using DynamoDB, 53% are using Elastic Kubernetes, and a fast growing section is using things likes Athena, Glue and Sagemaker. What are some of the types of applications that you’re seeing customer build that leverage these new models? 

Topic 5 – With technologies like Outpost being announced, after so many years of AWS saying “Cloud or legacy Data Center,” how do you see this impacting the thought process of customers or potential customers?

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The Most Popular AWS Products of 2018

Big Data and Machine Learning Services Lead the Way

If you’ve been reading this blog, or otherwise following the enterprise tech market, you know that the worldwide cloud services market is strong. According to Gartner, the market is projected to grow by 17% in 2019, to over $206 billion.

Within that market, enterprise IT departments are embracing cloud infrastructure and related services like never before. They’re attracted to tools and technologies that enable innovation, cost savings, faster-time-to-market for new digital products and services, flexibility and productivity. They want to be able to scale their infrastructure up and down as the situation warrants, and they’re enamored with the idea of “digital transformation.”

In its short history, cloud infrastructure has never been more exciting. At 2nd Watch, we are fortunate to have a front-row seat to the show, with more than 400 enterprise workloads under management and over 200,000 instances in our managed public cloud. With 2018 now in our rearview mirror, we thought this a good time for a quick peek back at the most popular Amazon Web Services (AWS) products of the past year. We aggregated and anonymized our AWS customer data from 2018, and here’s what we found:

The top five AWS products of 2018 were: Amazon Virtual Private Cloud (used by 100% of 2nd Watch customers); AWS Data Transfer (100%); Amazon Simple Storage Service (100%); Amazon DynamoDB (100%) and Amazon Elastic Compute Cloud (100%). Frankly, the top five list isn’t surprising. It is, however, indicative of legacy workloads and architectures being run by the enterprise.

Meanwhile, the fastest-growing AWS products of 2018 were: Amazon Athena (68% CAGR, as measured by dollars spent on this service with 2nd Watch in 2018 v. 2017); Amazon Elastic Container Service for Kubernetes (53%); Amazon MQ (37%); AWS OpsWorks (23%); Amazon EC2 Container Service (21%); Amazon SageMaker (21%); AWS Certificate Manager (20%); and AWS Glue (16%).

The growth in data services like Athena and Glue, correlated with Sagemaker, is interesting. Typically, the hype isn’t supported by the data, but clearly, customers are moving forward with big data and machine learning strategies. These three services were also the fastest growing services in Q4 2018.

Looking ahead, I expect EKS to be huge this year, along with Sagemaker and serverless. Based on job postings and demand in the market, Kubernetes is the most requested skill set in the enterprise. For a look at the other AWS products and services that rounded out our list for 2018, download our infographic.

– Chris Garvey, EVP Product

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Why VMware Cloud on AWS?

By now you’ve likely heard of VMware Cloud on AWS, either from the first announcement of the offering, or more recently as activity in the space has been heating up since the product has reached a state of maturity.  On-premises, we loved what VMware could do for us in terms of ease of management and the full utilization of hardware resources.  However, in the cloud the push for native services is ever present, and many first reactions about VMC are “Why would you do that?   This is certainly the elephant in the room whenever the topic arises.  Previous experience with manually deployed VMware in the AWS cloud required nested virtualization and nearly the same care and feeding as on-premises.  This further adds to initial reaction.  Common sense would dictate however, that if the two 800-pound gorillas come together in the room, they may be able to take on the elephant in the room!  As features have been added to the product and customer feedback implemented, it has become more and more compelling for the enormous installed base of VMware to take advantage of the offering.

What are the best features of VMware Cloud on AWS?

Some of the most attractive features of the cloud are the managed services, which reduce the administrative overhead normally required to maintain reliable and secure operations.  Let’s say you want to use SQL Server in AWS.  Moving to the RDS service where there is no maintenance, configuration or patching of the underlying server is an easy decision.  After some time, the thought of configuring a server and installing/maintaining a RDBMS seems archaic and troublesome. You can now have your DBA focus on the business value that the database provides.  VMware Cloud on AWS is no different.  The underlying software and physical hardware is no longer a concern.  One can always be on the optimum version of the platform with no effort, and additional hardware can be added to a cluster at the press of a button.

So, what software/service helps manage and control the entirety of your IT estate?

There are many third-party software solutions, managed service providers, and up and coming native services like Simple Systems Manager.  Now imagine a cloud based managed service that works for on-premises and cloud resources, and has an existing, mature ecosystem where nearly everyone in Enterprise IT has basic to advanced knowledge.  Sounds attractive, doesn’t it?  That is the idea behind VMware Cloud on AWS.

The architecture of VMC is based on dedicated bare metal systems that are physically located in AWS datacenters.  VMware Cloud on AWS Software Defined Datacenters (SDDCs) are deployed with a fully configured vSAN running on NVMe Flash storage local to the cluster, which currently can expand up to 32 nodes.  You are free to provision the hosts anyway you see fit.  This arrangement also allows full access to AWS services, and keeps resources in the same low latency network.  There is also a connector between the customer’s AWS account and the VMC SDDC, allowing direct low latency access to existing AWS resources in a client VPC.  For management, the hybrid linked mode gives a single logical view spanning both on-premises and VMC vCenter servers.  This allows control of the complete hybrid environment with vCenter and the familiar web console.

Figure 1.  VMware Cloud on AWS Overview

Below are some selected capabilities, benefits, and general information on the VMware Cloud on AWS:

  • There is no immediate requirement for refactoring of existing applications, but access to AWS services allows for future modernization.
  • Very little retraining of personnel is required. Existing scripts, tools and workflows are reusable.
  • Easy expansion of resource footprint without deploying more physical infrastructure.
  • Easy migration of VMs across specific geographies or between cloud/premises for compliance and latency reasons.
  • VMware native resiliency and availability features are fully supported: including DRS for workload distribution, shared storage for clustered application support, and automatic VM restart after node failure.
  • DR as a service with Site Recovery is supported, including the creation of stretched clusters. This can provide zero-RPO between AZ’s within the AWS region.  This service takes advantage of the AWS infrastructure which is already designed with high availability in mind.
  • VMware Horizon 7 is fully supported. This can extend on-premises desktop services without buying additional hardware and enables placement of virtual desktops near latency-sensitive applications in the cloud.
  • The service has GDPR, HIPAA, ISO, and SOC attestations to enable the creation of compliant solutions.
  • Region expansion is underway and two new regions have recently come online in Europe.
  • Discounts are available based on existing product consumption and licensing.
  • Integration with CloudFormation for automated deployment is available.

Figure 2:  VMware Cloud on AWS Target use cases

So for those currently using VMware and considering a move to the cloud and/or hybrid architecture, VMware Cloud on AWS offers the most straightforward gateway into this space.  The service then brings all the hundreds of services in the AWS ecosystem into play, as well as a consistent operational model, the ability to retain familiar VMware tools, policies, management, and investments in third-party tools.  So instead of planning and executing your next hardware refresh and VMware version upgrade, consider migrating to VMware Cloud on AWS!

For help getting started migrating to VMware Cloud on AWS, contact us.

-Eric Deehr, Cloud Solutions Architect & Technical Product Manager

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Cloud Transformation Through ITIL Service Strategy

For some IT organizations the cloud computing paradigm poses critical existential questions; How does my IT organization stay relevant in a cloud environment? How does IT still provide value to the business? What can be done to improve the business’ perception of IT’s contribution to the company? Without a clear approach to tackling these and other related questions, IT organizations stumble into a partially thought-out cloud computing strategy and miss out on capturing the short and long-term financial ROI and transformational benefits of a cloud-first strategy.

Several key concepts and principles from ITIL’s Service Strategy lifecycle stage lend themselves to defining and guiding a strategic approach to adopting and implementing a cloud-first strategy. In this article, we’ll highlight and define some of these key principles and outline a tactical approach to implementing a cloud-first strategy.

One of the key concepts leveraged in ITIL’s Service Strategy is the Run-Grow-Transform framework from Gartner.  From an executive management perspective, the IT organization’s contribution to the company’s goals and objectives can be framed along the Run-Grow-Transform model – specifically around how IT can help the company (1) Run-The-Business, (2) Grow-The-Business, and (3) Transform-The-Business.

The CIO’s value is both objectively and subjectively measured by answering:

1 – How can IT reduce the cost of current IT operations, thus improving the bottom line?

2 – How can IT help the business expand and gain greater market share with our current business offerings?

3 – How can IT empower the business to venture out into new opportunities and/or develop new competitive business advantage?

We’ll take a close look at each model area, highlight key characteristics, and give examples of how a cloud-first policy can enable a CIO to contribute to the companies’ goals and objectives and not only remain relevant to the organization but enable business innovation.

Run-the-Business and Cloud-First Strategy

Run the Business (RTB) is about supporting essential business operations and processes. This usually translates to typical IT services and operations such as email-messaging systems, HR services, Payroll and Financial systems. The core functionality these IT services provide is necessary and essential but not differentiating to the business. These are generally viewed as basic core commodity services, required IT costs for keeping the business operational.

The CIO’s objective is to minimize the cost of RTB activities without any comprise to the quality of service. A cloud-first policy can achieve these outcomes. It can reduce costs by moving low value-add IT activities (sometimes referred to as ‘non-differentiating work’) to a cloud provider that excels at performing the same work with hyper efficiency. Add in the ability of a cloud provider to leverage economies of scale and you have a source of reliable, highly cost-optimized IT services that cannot be matched by any traditional data center or hosting provider (see AWS’s James Hamilton discuss data center architecture at scale). Case studies from GE, Covanta, and Conde Nast bare out the benefit of moving to AWS and enabling their respective CIOs to improve their  business’ bottom line.

Grow-the-Business and Cloud First Strategy

Grow the Business (GTB) activities are marked by enabling the business to successfully increase market share and overall revenue in existing markets. If a company doubles its customer base, then the IT organization responds with timely and flexible capacity to support such growth. Generally, an increase in GTB spending should be tied to an increase in business revenue.

Cloud computing providers, such as AWS, are uniquely capable to support GTB initiatives. AWS’ rapid elasticity drastically alters the traditional management of IT demand and capacity. A classic case in point is the “Black Friday” phenomena. If the IT organization does not have sufficient IT resources to accommodate the projected increase in business volume, then the company risks missing out on revenue capture and may experience a negative brand impact. If the IT organization overprovisions its IT resources, then unnecessary costs are incurred and it adversely affects the company’s profits. Other similar business phenomena include “Cyber Monday,” Super Bowl Ads, and product launches. Without a highly available and elastic cloud computing environment, IT will struggle to support GTB activities (see AWS whitepaper “Infrastructure Event Readiness” for a similar perspective).

A cloud’s elasticity solves both ends of the spectrum scenarios by not only being able to ramp up quickly in response to increased business demand, but also scale down when demand subsides. Additionally, AWS’ pay-for-what-you-use model is a powerful differentiating feature. Some key uses cases include Crate & Barrel and Coca-Cola. Through a cloud-first strategy, a CIO is able to respond to GTB initiatives and activities in a cost-optimized manner.

Transform-the-Business and Cloud Computing

Transform the Business (TTB) represents opportunities for a company to make high risk but high reward investments. This usually entails moving into a new market segment with a new business or product offering. Innovation is the key success factor in TTB initiatives. Traditionally this is high risk to the business because of the upfront investment required to support new business initiatives. But in order to innovate, IT and business leaders need to experiment, to prototype and test new ideas.

With a cloud-first policy, the IT organization can mitigate the high-risk investment, yet still obtain the high rewards by enabling a ‘fail early, fail fast’ strategy in a cloud environment. Boxever is a case study in fail fast prototyping. Alan Giles, CTO of Boxever, credits AWS with the ability to know within days “if our design and assumptions [are] valid. The time and cost savings of this approach are nearly incalculable, but are definitely significant in terms of time to market, resourcing, and cash flow.” This cloud-based fail-fast approach can be applied to all market-segments, including government agencies. The hidden value in a cloud-based fail fast strategy is that failure is affordable and OK, making it easier to experiment and innovate. As Richard Harshman, Head of ASEAN for Amazon Web Services, puts it, “Don’t be afraid to experiment. The cloud allows you to fail fast and fail cheap. If and when you succeed, it allows you to scale infinitely and go global in minutes”.

So what does a cloud-first strategy look like?

While this is a rudimentary, back-of-the-envelope style outline, it provides a high-level, practical methodology for implementing a cloud-first based policy.

For RTB initiatives: Move undifferentiated shared services and supporting services to the cloud, either through Infrastructure-as-a-Service (IaaS) or Software-as-a-Service (SaaS) based solutions.

For GTB initiatives: Move customer-facing services to the cloud to leverage dynamic supply and demand capacity.

For TTB initiatives: Set up and teardown cloud environments to test and prototype new ideas and business offerings at minimal cost.

In addition to the Run-Grow-Transform framework, the ITIL Service Strategy lifecycle stage provides additional guidance from its Service Portfolio Management, Demand Management, and Financial Management process domains that can be leveraged to guide a cloud-first based strategy. These principles, coupled with other related guidance such as AWS Cloud Adoption Framework, provide a meaningful blueprint for IT organizations to quickly embrace a cloud-first strategy in a structured and methodical manner.

By aggressively embracing a cloud-first strategy, CIOs can demonstrate their business relevance through RTB and GTB initiatives. Through TTB initiatives IT can facilitate business innovation and transformation, yielding greater value to their customers. We are here to help our customers, so if you need help developing a cloud-first strategy, contact us here.

-Vince Lo Faso, Solutions Architect

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