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Great Expectations

03-Oct-2016 by: John Bensalhia

 

Ericsson's presence at the forthcoming Cloud Expo Asia Singapore will include  Head of Cloud Marketing, Geoff Hollingworth's keynote session. John Bensalhia finds out more...

One of the major presences at Cloud Expo Asia Singapore 2016 is Ericsson. The company will be participating in thought leadership engagements, delivering keynotes at the conference and exhibiting its end-to-end Cloud capabilities in the technology showcase.

Ericsson’s Head of Cloud Marketing, Geoff Hollingworth will be presenting one of the sessions at the forthcoming event. The keynote, entitled “Powering the Digital Industrialisation: Turn Hype into Scale”, will be given at 10am on Thursday 13th October.

“In this keynote, I will stir the discussion on why we need to industrialise and accelerate our own transformations,” says Geoff. “In a lot of traditional industries it’s not clear how IT infrastructure can be turned from a cost to a strategic asset and differentiator to drive new top line revenue for the companies. IT infrastructures should be treated as factories and this is the urgent needs for enterprises today to modernise and industrialise IT infrastructure end-to-end.”

“This approach enables them to rapidly scale up or down, adapt and deliver highly focused and resilient customer-centric solutions, realise capex and opex reductions and gain speed, scalability and flexibility. In order to be successful in Cloud operations, hyperscale is the norm, realised either in own data centres or in partnership with hyperscale players.”

Geoff will also talk about the challenges that enterprises are facing in modernising their infrastructure regarding legacy systems and the balance between speed for business innovations and security risks. “The presentation will be filled with a lot of best practices from global operators as well as enterprises on their successful journey to hyperscale.”

Geoff originally joined Ericsson 20 years ago and since then has been based in many cities across the world, holding different positions from leading Ericsson’s innovation efforts towards the AT&T Foundry initiative, Head of IP Services Strategy for North America as well as other roles in software R&D and mobile network deployment. “Now I serve as Head of Product Marketing Cloud Systems and Networked Society evangelist, responsible for the global positioning, promotion and education of Ericsson’s next generation Cloud infrastructure offerings.”

Geoff says that Ericsson can play a key role in driving the digital industrialisation through its unique combination of advanced technology, global presence and proven ability to drive transformation. “Ericsson Cloud spans a wide range of areas, all the way from radio and data centres to applications enabled by Cloud.”

“There are three main building blocks: an industrialised Cloud infrastructure, the ability to operate the Cloud environment efficiently, and finally, the possibility to transform business and capture new revenue opportunities enabled by Cloud adoption.”

The ability to adopt Cloud and execute on it is a common problem. “Ericsson provides transformation services to minimise the hurdles and risks when migrating the operations to reach the full potential of Cloud. Cloud transformation services are needed across the board, from Cloud infrastructure to the applications enabled by Cloud.”

“At Ericsson, we believe that you should only own infrastructure if a regulation/law requires you to do so or if it provides you with a strategic advantage,” adds Geoff. “All of our customers have to adhere to local laws and regulations and be able to show compliance to both. Many of our customers operate in many countries where the local laws and regulations are not consistent cross border. And all our customers understand the need to be moving at digital speed which compared to traditional IT speed is lightning fast.”

The benefits of Cloud are many. As Geoff comments: “The promise of Cloud is big, and the expectations are many.” For example, there is lower Total Cost of Ownership. “There is an expectation that the Total Cost of Ownership (TCO) will be lower by adopting a Cloud model, compared to traditional data centres,” says Geoff. Recent research found that companies implementing the right hyperscale platform as opposed to a traditional data centre infrastructure can capture significant TCO savings, which generated capex savings of up to 59%, opex savings of up to 75%, and a return on investment (ROI) of up to 149% for large enterprise data centre operators over a five-year period.

Other benefits include the ability to enable new business models. “One such business model is the creation of offerings as-a-Service (XaaS) which lowers entry barriers as well as enables economies of scale,” says Geoff. “This is an opportunity for operators as well as other enterprises.”

There is also increased flexibility (“By virtualisation of network functions it is possible to be more agile and flexible and enables scaling up and down capacity depending on need.”) and new revenue opportunities (“By being able to launch new services quicker to market and also to enable penetration of markets that were earlier not possible.”).

The final key benefits are that of enabling productivity and efficiency gains. “One of the main drivers for Cloud adoption is that it will enable productivity and efficiency gains,” says Geoff. “In a recent ConsumerLab study, IT decision makers were asked about their expected outcomes of moving to Cloud and this aspect came out highest.”

2016 is the start of Cloud going mainstream into large business big time, as Geoff explains. “If you are not currently planning for Cloud, then CIO does probably stand for “Career is Over”.”

“Prior to 2016, I would say CIOs of large multi-nationals were questioned by their companies if they were using public Cloud and asking why. I sense in 2016 those same CIO’s are being questioned if they are not using public and why not! Then the next question is always, where is it good to use public Cloud and where it is not good to use public Cloud? Businesses want Cloud but they want public Cloud not only in public but in private environments as well. This is the birth of the hybrid Cloud model and trends show that for larger businesses hybrid Cloud models and multi-Cloud models will be the design centre of the future.

Geoff says that the second notable development is that the whole IT industry has realised that the world’s most successful Cloud players are playing a completely different game with completely different tools and approaches. “The public Cloud giants, all stopped buying from traditional IT vendors when they realised they had to scale beyond “normal”.”

“They all realised they had to have a different solution, made their own but did not share with the broader community. Intel has now taken the industry lead to open source what the Cloud giants have done with their Intel Rackscale Design; and this year all major vendors have announced next generation products that align.”

“Lastly, one thing that is not changing but needs to is that security breaches are still never out of the press,” says Geoff. “Existing security practices clearly needs more and we think we have an answer.”

With regards to the future, the total addressable Cloud market towards telecom operators is estimated to grow (as communicated at the Ericsson Capital Markets Day) from 6 BUSD in 2014 to 15 BUSD in 2018.

“The total market is much bigger and depending on how you define it, it ranges between 50-200 BUSD. On top of this infrastructure addressable market, there are both the efficiency gains realised with Cloud, and the new revenues possible to capture once Cloud is adopted. The monetary value of this is hard to estimate, but the gains are huge.”

“IDC FutureScape predicted that by 2018, at least half of IT spending will be Cloud-based, 65% of companies' IT assets will be off-site in colocation, hosting, and Cloud data centres and one third of IT "staff" will be employees of third-party service providers. So Cloud is happening and Ericsson is determined to play an important role therein.”

“To realise our Cloud vision, we have a number of strategic partners like Intel, ABB, Cisco..., we have made significant acquisitions like Apcera, Sentilla.. and we are part of a several alliances like OPNFV, OpenStack, OpenDayLight to name a few.”

 

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