Tag Archives: Hyper-Scalers

Looking Beyond the Hyper-Scaler Clouds – Don’t Forget the Little Guys!

I’ve been on the road over the past couple of weeks presenting to Veeam’s VCSP partners and prospective partners here in Australia and New Zealand on Veeam’s Cloud Business. Apart from the great feedback in response to what Veeam is doing by way of our cloud story I’ve had good conversations around public cloud and infrastructure providers verses the likes of Azure or AWS. Coming from my background working for smaller, but very successful service providers I found it almost astonishing that smaller resellers and MSPs seem to be leveraging the hyper-scale clouds without giving the smaller providers a look in.

On the one hand, I understand why people would choose to look to Azure, AWS and alike to run their client services…while on the other hand I believe that the marketing power of the hyper-scalers has left the capabilities and reputation of smaller providers short changed. You only need to look at last week’s AWS outage and previous Azure outages to understand that no cloud is immune to outages and it’s misjudged to assume that the hyper-scalers offer any better reliability or uptime than the likes of providers in the vCloud Air Network or other IaaS providers out there.

That said, there is no doubt that the scale and brain power that sits behind the hyper-scalers ensures a level of service and reliability that some smaller providers will struggle to match, but as was the case last week…the bigger they are, the harder they fall. The other things that comes with scale is the ability to drive down prices and again, there seems to be a misconception that the hyper-scalers are cheaper than smaller service providers. In fact most of the conversations I had last week as to why Azure or AWS was chosen was down to pricing and kickbacks. Certainly in Azure’s case, Microsoft has thrown a lot into ensuring customers on EAs have enough free service credits to ensure uptake and there are apparently nice sign-up bonuses that they offer to partners.

During that conversation, I asked the reseller why they hadn’t looked at some of the local VCSP/vCAN providers as options for hosting their Veeam infrastructure for clients to backup workloads to. Their response was, that it was never a consideration due to Microsoft being…well…Microsoft. The marketing juggernaut was too strong…the kickbacks too attractive. After talking to him for a few minutes I convinced him to take a look at the local providers who offer, in my opinion more flexible and more diverse service offerings for the use case.

Not surprisingly, in most cases money is the number one factor in a lot of these decisions with service uptime and reliability coming in as an important afterthought…but an afterthought non-the less. I’ve already written about service uptime and reliability in regards to cloud outages before but the main point of this post is to highlight that resellers and MSP’s can make as much money…if not more, with smaller service providers. It’s common now for service providers to offer partner reseller or channel programs that ensure the partner gets decent recurring revenue streams from the services consumed and the more consumed the more you make by way of program level incentives.

I’m not going to do the sums, because there is so much variation in the different programs but those reading who have not considered using smaller providers over the likes of Azure or AWS I would encourage to look through the VCSP Service Provider directory and the vCloud Air Network directory and locate local providers. From there, enquire about their partner reseller or channel programs…there is money to be made. Veeam (and VMware with the vCAN) put a lot of trust and effort into our VCSPs and having worked for some of the best and know of a lot of other service provider offerings I can tell you that if you are not looking at them as a viable option for your cloud services then you are not doing yourself justice.

The cloud hyper-scalers are far from the panacea they claim to be…if anything, it’s worthwhile spreading your workloads across multiple clouds to ensure the best availability experience for your clients…however, don’t forget the little guys!

Cross Cloud: Why The VM Shouldn’t Be The Base Unit of Measurement

I’ve been sitting on this topic since the VMworld 2016 US Keynote where VMware announced the Cross Cloud Architecture. I posted some raw thoughts the day after keynote and have been reflecting on how the Cross Cloud Platform could impact on VMware’s vCAN business. As mentioned previously I believe it’s representative of how VMware is worrying over it’s future relevance and reacting to current market fads all while ultimately worrying about how the hyper-scalers will impact their core infrastructure business.

The concept of cross cloud isn’t new and in truth a lot of vendors today are working to, or have solutions that aim to convert workloads from one platform to another. Zerto do this with their Cloud Fabric with the ability to move certain VMs from ESXi to Hyper-V, AWS and Azure and every combination in between. Veeam also have a new feature where you can restore ESXi or Hyper-V VMs to Azure…again, limited in functionality but a strong indication of what’s to come given the latest Veeam announcements.

Both Zerto and Veeam market their solutions well, however those that have been involved in V2Vs know that only under certain conditions do conversions go smoothly. There is no doubt this cross platform world is getting more reliable and more and more vendors are chasing the perfect conversion. However what Veeam and Zerto are offering is Backup and DR services that complement VM workloads either on-premises or in a cloud…the end game with these products isn’t mobility…its availability.

Focusing back on VMware it was clear to almost everyone that the Cross Cloud Platform featuring Azure and AWS workload migrations, was tech previewed to show that VMware is relevant in an enterprise multi cloud world but I am going to argue that the focus on the VM as the base unit of measurement is misguided…especially when it comes to VMware supporting it’s vCloud Air Network providers. I understand it as a necessity being able to have a class of portable applications in this new microservice and serverless world while having them transportable between multiple clouds. Again, I don’t believe the VM should be the base unit of measurement and the unit shown to be the most transportable.

Service providers need to play to their strengths, which in the vCAN world is no bill shock fixed cost IaaS workloads. This remains the base platform for a significant portion of any on-premises or cloud workload. Service providers take most of their revenue stream from compute, storage and networking that are the building blocks of instance based and resource pool offerings from which VMs can be provisioned and consumed. If you ask any service provider they would say that they would like total VM stickiness and any mechanism that aims to make VMs more portable will impact the bottom line and threatens ongoing viability.

Having customers access a VMware provided console that moves VM workloads off VMware based infrastructure and onto AWS or Azure to my mind is close to madness, and while there is an argument to suggest that cloud is the new hardware and VMware want to manage this new hardware…it still doesn’t make up for the fact that most revenue is made by having VMs staying local and not having an easy way to migrate them to platforms where smaller margins are the norm.

Going back to the point of this post around the theory that the VM shouldn’t be the base unit in a cross cloud world, I believe that for the sake of the vCAN VMware should be focusing within the VM and the applications that run within them…working towards a truly hybrid scenario whereby Platform and Feature as a Service offerings are managed, configured and operated via the Cross Cloud platform. This will help achieve a sustained revenue stream for IaaS providers that in truth, still represents the best value for money for the vast majority of critical business applications that are in existence today, all while allowing consumers the choice of going out and finding the best “As a Service” offering that specifically suits application requirements.

At the end of the day I do wonder which side of the VMware business wins out…the one that derive their revenue from Enterprise…or the one that derive their revenue from Service Providers. Unfortunately I know where the bigger revenue streams lie and that doesn’t bode well for Service Providers. It’s all about the corporate dollar after all.