By Clive Gold, CTO Marketing, EMC Australia and New Zealand
It has been an IDC week for me. First the Digital Universe study, (here), even a radio interview with Andy Wells, (here), and then an IDC Cloud briefing. Very interesting stuff and IDC put two new terms into my vernacular, vPC and socialytic.
First was a discussion about the buying trends of customer’s w.r.t the various ‘cloud’ offerings. Chris Morris, Research Director at IDC’s Asia/Pacific Practice Group, immediately got my attention when he said that he expected the term ‘Cloud’ to disappear to be replaced by out-sourcing 3.0, a new set of sourcing models. Yes, may not agree with the name, but you have to agree with the point! He pointed out that the largest market share growth will be from virtual private clouds or vPC, and then went on to describe a vPC. It is what EMC has been working on with the leading providers like; Telstra, Optus, Macquarie Telecom, CSC, MelbourneIT, Enspire, etc. That is the delivery of enterprise class, off-premise, flexible, infrastructure as a service. Sounded to me like the demand is for something that : ‘Looks like mine, you run it and I pay for what I use.’ This model overcomes the risks of the public cloud, (apparent from recent incidents), but still provides the economic and flexibility benefits. In-fact IDC sees that the
percentage of the market that the Public Cloud offerings have will decrease over the next five years. He also highlighted the fact that a number of the CIO’s he talks to are concerned about, “cloud vendor churn”.
The other point that Chris made that you might be interested in, is that the ‘power’ of the market is shifting from consumers to service providers. Many vendors like EMC have established service provider programmes and have changed their go to market models to cater for their needs. Vendors slow to adopt the new licencing and consumption pricing are at risk. I guess some ISV’s
who still think, “there is a licence fee in that” are in for a surprise and maybe this explains recent moves in share prices and profit downgrades.
The second part was more thought provoking and less statistically based and gave rise to the Socialytic app. But I don’t have space to describe that here… next time.