Gary Audin
Gary Audin is the President of Delphi, Inc. He has more than 40 years of computer, communications and security...
Read Full Bio >>

Gary Audin | September 30, 2016 |


Where Are You with Cloud Migration?

Where Are You with Cloud Migration? A McKinsey & Company survey sheds light on IaaS adoption trends across different-sized businesses.

A McKinsey & Company survey sheds light on IaaS adoption trends across different-sized businesses.

Is your unified communications system running on internal systems? Is it co-located with other applications? Is it virtualized? Will you be moving to a cloud service soon? Will you be running your UC system as an application in the cloud? Where are we with cloud implementations?

The cloud is an expanding alternative to on-premises IT solutions. Your choices are infrastructure as a service (IaaS), platform as a service (PaaS) and software as a service (SaaS), the last of which unified communications as a service (UCaaS) is a subset. As I looked at in my recent blog, "Modernizing IT Means Modernizing UC," IaaS is becoming a popular solution for UC applications.

A McKinsey & Company survey, "IT-as-a-Service (ITaaS) Cloud and Enterprise Cloud Infrastructure," focuses on IaaS and is discussed in this recent report. There were about 800 CIOs and IT executives from a variety of industries, ranging from small businesses to Fortune 100 enterprises, who provided their views on the transition to cloud infrastructure looking ahead to 2018.

IaaS for UC

When you are working with an IaaS service model, you are working with a third-party. The third-party provides the hardware, software, servers, storage, building, power, and other infrastructure elements. As part of the service, you also receive maintenance, backup, and resiliency planning. You still need to retain your IT staff for operations. What you're doing is outsourcing the physical data center. By running your software on the IaaS provider's infrastructure, you don't have to own and maintain a data center. This could be licensed software such as unified communications and/or applications that you have written.

IaaS is highly scalable. That means that you can size facilities to what you need. This is very important when you have seasonal variations in the amount of traffic you have to handle or when two organizations merge or the market changes. You can also use the IaaS configuration to experiment with new ideas (new forms of collaboration), support temporary solutions, and respond to business changes rapidly.

Usually IaaS customers pay on a timed per-use charge structure: by the hour, week, or month. Some providers charge customers based on the amount of virtual machine space that is used. This billing model eliminates the capital expense of deploying in-house infrastructure hardware and software. It also means that the organization can rapidly deploy IaaS resident solutions, much faster than if the organization had to buy and implement the infrastructure hardware and software itself.

The Cloud Shift

IT is shifting toward the cloud. The survey results indicate that enterprises plan to reduce the number of workloads they support on premises. It appears that many of the organizations have confidence in migrating other applications to IaaS. The on-premises cloud environment seems to have hit its peak of popularity. When you look at the chart below from the McKinsey report, you discover that the on-premises cloud service does not look like it is going to change at all. The dedicated private cloud and the virtual private cloud and public IaaS are all looking forward to considerable growth. The virtualized owned environment is going to decrease slightly.


Who Will Do What?

The size of the organization will influence its adoption of cloud technologies, as the McKinsey survey results show in the chart below. In looking at the six approaches in the chart, there are some differences among the large and midsize enterprises, and small and medium businesses. As you look across the large enterprise applications, you discover that the choice of public IaaS increases from 10% in 2015 to 51% by 2018. Choice of dedicated private cloud and virtual private cloud solutions by the enterprise are also slated to see significant growth. Traditional on-premises solutions and on-premises virtualized approaches are expected to decrease by 2018, while on-premises private cloud will increase from 24% in 2015 to 46% by 2018. In summary, large enterprise cloud adoption looks like it is going to accelerate.

Midsize organizations tend to favor dedicated or virtual private clouds. The public IaaS growth for this segment is modest, 28% in 2015 to 40% by 2018. Small and medium business will experience modest public IaaS growth, from 23% to 33% by 2018. Dedicated private cloud and virtual private cloud growth will be modest as well.


Influences and Barriers to Cloud Adoption

Although many see the cloud as a means to cut costs, it also offers greater flexibility and reduced time-to-market for application introduction and response to market changes. Security and compliance are the two top barriers to acceptance of the cloud. They should be considered as most important when selecting an IaaS solution. Cost should be a third evaluation element. Since you can move everything to the cloud rapidly, interoperability with on-premises private cloud solutions or with traditional solutions is also important when evaluating IaaS solutions.

There are many cloud providers in the market today. The large providers such as Amazon, Google, and Microsoft will probably be high on your list to consider. These are called hyper scale providers. The survey discovered that roughly 80% of large enterprises will move one or more applications/workloads to a hyper scale provider by 2018. A disadvantage that some consider is that once you choose one of these large providers, it's very likely you will have vendor lock-in. If flexibility to change providers is important to you, you should also look at the tier 2 and tier 3 IaaS providers as well as the telcos for other solutions.


August 29, 2018

Moving your voice services to the cloud introduces new challenges for 9-1-1 services. These include the need to serve multiple locations, and the increased mobility that comes with having a phone t

August 8, 2018

Artificial intelligence (AI) is becoming a reality for your contact center. But to turn the promise of AI into practical reality, there are a couple of prerequisites: Moving to the cloud and integr

June 20, 2018

Your enterprise may have adopted SIP Trunks, but are you up to date on how the latest technology is driving evolution in approaches?

In this webinar, youll learn how the new generation of SI

March 12, 2018
An effective E-911 implementation doesn't just happen; it takes a solid strategy. Tune in for tips from IT expert Irwin Lazar, of Nemertes Research.
March 9, 2018
IT consultant Steve Leaden lays out the whys and how-tos of getting the green light for your convergence strategy.
March 7, 2018
In advance of his speech tech tutorial at EC18, communications analyst Jon Arnold explores what voice means in a post-PBX world.
February 28, 2018
Voice engagement isn't about a simple phone call any longer, but rather a conversational experience that crosses from one channel to the next, as Daniel Hong, a VP and research director with Forrester....
February 16, 2018
What trends and technologies should you be up on for your contact center? Sheila McGee-Smith, Contact Center & Customer Experience track chair for Enterprise Connect 2018, gives us the lowdown.
February 9, 2018
Melanie Turek, VP of connected work research at Frost & Sullivan, walks us through key components -- and sticking points -- of customer-oriented digital transformation projects.
February 2, 2018
UC consultant Marty Parker has crunched lots of numbers evaluating UC options; tune in for what he's learned and tips for your own analysis.
January 26, 2018
Don't miss out on the fun! Organizer Alan Quayle shares details of his pre-Enterprise Connect hackathon, TADHack-mini '18, showcasing programmable communications.
December 20, 2017
Kevin Kieller, partner with enableUC, provides advice on how to move forward with your Skype for Business and Teams deployments.
December 20, 2017
Zeus Kerravala, principal analyst with ZK Research, shares his perspective on artificial intelligence and the future of team collaboration.
December 20, 2017
Delanda Coleman, Microsoft senior marketing manager, explains the Teams vision and shares use case examples.
November 30, 2017
With a ruling on the FCC's proposed order to dismantle the Open Internet Order expected this month, communications technology attorney Martha Buyer walks us through what's at stake.
October 23, 2017
Wondering which Office 365 collaboration tool to use when? Get quick pointers from CBT Nuggets instructor Simona Millham.
September 22, 2017
In this podcast, we explore the future of work with Robert Brown, AVP of the Cognizant Center for the Future of Work, who helps us answer the question, "What do we do when machines do everything?"
September 8, 2017
Greg Collins, a technology analyst and strategist with Exact Ventures, delivers a status report on 5G implementation plans and tells enterprises why they shouldn't wait to move ahead on potential use ....
August 25, 2017
Find out what business considerations are driving the SIP trunking market today, and learn a bit about how satisfied enterprises are with their providers. We talk with John Malone, president of The Ea....
August 16, 2017
World Vision U.S. is finding lots of goodness in RingCentral's cloud communications service, but as Randy Boyd, infrastructure architect at the global humanitarian nonprofit, tells us, he and his team....
August 11, 2017
Alicia Gee, director of unified communications at Sutter Physician Services, oversees the technical team supporting a 1,000-agent contact center running on Genesys PureConnect. She catches us up on th....
August 4, 2017
Andrew Prokop, communications evangelist with Arrow Systems Integration, has lately been working on integrating enterprise communications into Internet of Things ecosystems. He shares examples and off....
July 27, 2017
Industry watcher Elka Popova, a Frost & Sullivan program director, shares her perspective on this acquisition, discussing Mitel's market positioning, why the move makes sense, and more.
July 14, 2017
Lantre Barr, founder and CEO of Blacc Spot Media, urges any enterprise that's been on the fence about integrating real-time communications into business workflows to jump off and get started. Tune and....
June 28, 2017
Communications expert Tsahi Levent-Levi, author of the popular blog, keeps a running tally and comprehensive overview of communications platform-as-a-service offerings in his "Choosing a W....
June 9, 2017
If you think telecom expense management applies to nothing more than business phone lines, think again. Hyoun Park, founder and principal investigator with technology advisory Amalgam Insights, tells ....
June 2, 2017
Enterprises strategizing on mobility today, including for internal collaboration, don't have the luxury of learning as they go. Tony Rizzo, enterprise mobility specialist with Blue Hill Research, expl....
May 24, 2017
Mark Winther, head of IDC's global telecom consulting practice, gives us his take on how CPaaS providers evolve beyond the basic building blocks and address maturing enterprise needs.
May 18, 2017
Diane Myers, senior research director at IHS Markit, walks us through her 2017 UC-as-a-service report... and shares what might be to come in 2018.
April 28, 2017
Change isn't easy, but it is necessary. Tune in for advice and perspective from Zeus Kerravala, co-author of a "Digital Transformation for Dummies" special edition.
April 20, 2017
Robin Gareiss, president of Nemertes Research, shares insight gleaned from the firm's 12th annual UCC Total Cost of Operations study.
March 23, 2017
Tim Banting, of Current Analysis, gives us a peek into what the next three years will bring in advance of his Enterprise Connect session exploring the question: Will there be a new model for enterpris....
March 15, 2017
Andrew Prokop, communications evangelist with Arrow Systems Integration, discusses the evolving role of the all-important session border controller.
March 9, 2017
Organizer Alan Quayle gives us the lowdown on programmable communications and all you need to know about participating in this pre-Enterprise Connect hackathon.
March 3, 2017
From protecting against new vulnerabilities to keeping security assessments up to date, security consultant Mark Collier shares tips on how best to protect your UC systems.
February 24, 2017
UC analyst Blair Pleasant sorts through the myriad cloud architectural models underlying UCaaS and CCaaS offerings, and explains why knowing the differences matter.
February 17, 2017
From the most basics of basics to the hidden gotchas, UC consultant Melissa Swartz helps demystify the complex world of SIP trunking.
February 7, 2017
UC&C consultant Kevin Kieller, a partner at enableUC, shares pointers for making the right architectural choices for your Skype for Business deployment.
February 1, 2017
Elka Popova, a Frost & Sullivan program director, shares a status report on the UCaaS market today and offers her perspective on what large enterprises need before committing to UC in the cloud.
January 26, 2017
Andrew Davis, co-founder of Wainhouse Research and chair of the Video track at Enterprise Connect 2017, sorts through the myriad cloud video service options and shares how to tell if your choice is en....
January 23, 2017
Sheila McGee-Smith, Contact Center/Customer Experience track chair for Enterprise Connect 2017, tells us what we need to know about the role cloud software is playing in contact centers today.