Welcome!

DevOps Journal Authors: Pat Romanski, Elizabeth White, Roger Strukhoff, Yeshim Deniz, Lori MacVittie

Related Topics: DevOps Journal, Java, SOA & WOA, Linux, Virtualization, Cloud Expo

DevOps Journal: Blog Feed Post

Frugal and Agile DevOps - the Cloud Computing Advantage

What's driving the ongoing transition to lower business technology spending?

Accomplish much more, very rapidly, while spending less -- this is the business technology trend that savvy executives everywhere have embraced. Worldwide IT spending will reach a total $3.7 trillion in 2014, that's a 2.1 percent increase from last year, according to the latest global market study by Gartner.

This forecast, however, is down from their earlier projections of 3.2 percent growth.

What's driving the ongoing transition to lower business technology spending? The slower outlook for 2014 is attributed to a reduction in growth expectations for end-user devices, data center systems and IT related services.

Moreover, the typical IT investment is evolving. It's transitioning from a legacy focus on technology and processes, to a focus on new business models and associated strategic outcomes that are purposefully enabled by digitalization.

Transition within Enterprise Mobile Devices
The IT end-user devices market -- which includes PCs, ultrabooks, smartphones, tablets and printers -- is forecast to grow in 2014, reaching $685 billion -- that's a 1.2 percent increase from 2013.

According to Gartner's assement, this trend is due in part to lower price points across smartphones and tablets. Besides, sales of high-priced tablets will decrease, with the next wave of adopters more attracted to low-priced utility tablets.

"Price pressure based on increased competition, lack of product differentiation and the increased availability of viable alternative solutions has had a dampening effect on the short term IT spending outlook," said Richard Gordon, managing vice president at Gartner.

Transition within the Enterprise Data Center
Cloud computing is already impacting traditional business technology spending patterns. Data center systems spending is projected to reach $140 billion in 2014 -- that's just a 0.4 percent increase from 2013.

The server market also shows weakness as enterprises migrate away from high-cost platforms toward lower-cost alternatives. Furthermore, the ongoing adoption of Hybrid Cloud solutions will increasingly become a factor in shifting budget allocations. It's enabling the frugal and agile DevOps movement.

The hyperscale segment, primarily driven by consumer-oriented services, does provide some positive drivers to the market -- albeit for very low-cost platforms, which further impacts overall spending levels on data center systems.

Transition within IT Services, Software and Telecom
IT services is forecast to total $967 billion in 2014, up 3.8 percent from 2013. Modestly improved spending is expected through 2014. IT outsourcing is growing slower than anticipated, as sharply reduced pricing by the largest vendors is impacting the cloud storage services market.

In addition, public cloud services are proving increasingly cannibalistic to more traditional data center outsourcing services. Implementation services are also growing slower than expected as risk-averse buyers remain focused on smaller, safer projects.

In the enterprise software market, spending is on pace to total $321 billion -- that's a 6.9 percent increase from 2013. Slightly increased growth expectations for infrastructure software are balanced out by slightly lower growth expected for applications software.

Slower growth is expected in the applications market, specifically office suites and digital content creation (DCC), which are being impacted by slow PC sales and the rapid move to cloud-based offerings by many organizations and professionals.

Telecom services spending is projected to grow 0.7 percent in 2014, with spending reaching $1,635 trillion. Voice average revenue per user (ARPU) will decline by about 10 percent annually through 2018 because of a decline in consumer use of voice services -- particularly among prepaid mobile users.

More Stories By David H Deans

David H. Deans is the Managing Director at the GeoActive Group. He has more than 25 years of experience in the Technology, Media and Telecom sectors.

Latest Stories from DevOps Journal
Enthusiasm for the Internet of Things has reached an all-time high. In 2013 alone, venture capitalists spent more than $1 billion dollars investing in the IoT space. With “smart” appliances and devices, IoT covers wearable smart devices, cloud services to hardware companies. Nest, a Google company, detects temperatures inside homes and automatically adjusts it by tracking its user’s habit. These technologies are quickly developing and with it come challenges such as bridging infrastructure gaps, abiding by privacy concerns and making the concept a reality. These challenges can’t be addressed without the kinds of agile software development and infrastructure approaches pioneered by the DevOps movement.
WaveMaker on Tuesday announced WaveMaker Enterprise, licensed software that enables organizations to run their own end-to-end application platform as a service (aPaaS) for building and running custom apps. WaveMaker Enterprise is a commercially available rapid API app development and deployment (RAADD) software integrated with a Docker container-architected aPaaS. WaveMaker Enterprise adds middleware and its Docker-architected PaaS to extend WaveMaker Studio, the company's free open source development platform, which has garnered over two million downloads and 30,000 loyal users around the world.
WaveMaker CEO Samir Ghosh is taking a new pass at aPaas, and leveraging the increasingly popular Docker open-source platform, with the announcement of WaveMaker Enterprise. The new version of the company's eponymous software “enables instant, end-to-end custom web app creation and management by professional and non-professional developers (alike) and development teams,” according to the company. We asked Samir a few questions about this, and here's what he had to say: Cloud Computing Journal: You've mentioned the previous challenge of business-side developers making that jump from design to deployment. What sort of learning curve will they still face with Wavemaker Enterprise? Samir Ghosh: “Business-side developers” can include non-programming business users or professional developers under tight schedules or with limited mobile or front-end programming expertise. Both can use WaveMaker to meet their app development needs, but may have different deployment needs. I think business users just want their app to run as easily as possible. In WaveMaker, they can literally click a button and their application will run, either on our public cloud or on the enterprise’s private...
Yahoo CIO Mike D. Kail will present a session on DevOps at the 3rd International DevOps Summit, November 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Mike brings more than 23 years of IT operations experience with a focus on highly scalable architectures to Yahoo. Prior to Yahoo, he served as VP of IT Operations at Netflix. The Netflix culture highlighted the transformation we see within forward-thinking IT organizations today and its use of public cloud and ‘No Ops' is well known in the industry. Mike Kail worked to develop this culture within Netflix's own IT organization, where he focused not only on the technology, but also on hiring and training the right talent. In order to achieve the right mix of technology innovation and human talent, he concentrated on identifying the right mind set for a new way of IT (DevOps) and how to transition from IT Ops to DevOps
DevOps Summit at Cloud Expo Silicon Valley announced today a limited time free "Expo Plus" registration option. On site registration price of $1,95 will be set to 'free' for delegates who register during this offer perios. To take advantage of this opportunity, attendees can use the coupon code, and secure their registration to attend all keynotes, DevOps Summit sessions at Cloud Expo, expo floor, and SYS-CON.tv power panels. Registration page is located at the DevOps Summit site.
The industry is heated with debates on whether adopting private or public cloud is the smartest, best, cheapest, you name it choice. But this debate is missing the mark. Businesses shouldn’t be discussing public vs. private, but rather how can they make the two work together to their greatest advantage. The ideal is to merge on-premise and off-premise into a seamless environment that can be managed as a single entity – a forward-looking stance that will eventually see major adoption. But as of late 2013, hybrid cloud was still “rare,” noted Gartner analyst Tom Bittman. In his session at 15th Cloud Expo, Marten Mickos, CEO of Eucalyptus Systems, will discuss how public clouds need on-premise satellites to win and, conversely, how on-premise environments cannot be really powerful unless they are connected to the public cloud. It’s not two competing worlds; it’s two dimensions of the same world.
All too many discussions about DevOps conclude that the solution is an all-purpose player: developer and operations guru, complete with pager for round-the-clock duty. For most organizations that is not the way forward. In his session at DevOps Summit, Bart Copeland, President & CEO of ActiveState Software, will discuss how to achieve the agility and speed of end-to-end automation without requiring an organization stocked with Supermen and Superwomen.
The impact of DevOps in the cloud era is potentially profound. DevOps helps businesses deliver new features continuously, reduce cycle time and achieve sustained innovation by applying agile and lean principles to assist all stakeholders in an organization that develop, operate, or benefit from the business’ lifecycle. In his session at DevOps Summit, Prashanth Chandrasekar, General Manager at Rackspace, will exam whether / how companies can work with external DevOps specialists to achieve "DevOps elasticity" and DevOps expertise at scale while internally focusing on writing code / development.
In his @ThingsExpo presentation, Aaater Suleman will discuss DevOps, Linux containers, Docker in developing a complex Internet of Things application. The goal of any DevOps solution is to optimize multiple processes in an organization. And success does not necessarily require that in executing the strategy everything needs to be automated to produce an effective plan. Yet, it is important that processes are put in place to handle a necessary list of items. Docker provides a user-friendly layer on top of Linux Containers (LXCs). LXCs provide operating-system-level virtualization by limiting a process's resources. In addition to using the chroot command to change accessible directories for a given process, Docker effectively provides isolation of one group of processes from other files and system processes without the expense of running another operating system.
In his session at DevOps Summit, Andrei Yurkevich, CTO at Altoros, will provide an overview of all the benefits and opportunities, as well as drawbacks of deploying Cloud Foundry PaaS with Juju and will compare it to BOSH. Attendees will discover the features that overlap, and will learn to understand what Juju Charm is, what it is not, where you use one or the other or where you use both BOSH and Juju Charms together.