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C2030-283 - Foundations of IBM Cloud Computing Architecture V3 - BrainDump Information

Vendor Name : IBM
Exam Code : C2030-283
Exam Name : Foundations of IBM Cloud Computing Architecture V3
Questions and Answers : 39 Q & A
Updated On : November 16, 2018
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C2030-283 exam Dumps Source : Foundations of IBM Cloud Computing Architecture V3

Test Code : C2030-283
Test Name : Foundations of IBM Cloud Computing Architecture V3
Vendor Name : IBM
Q&A : 39 Real Questions

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IBM Foundations of IBM Cloud

IBM/pink Hat - The Calculus Of The Cloud Stays The same | killexams.com Real Questions and Pass4sure dumps

1.0 govt summary

Getting right to the point, I’m skeptical that the pink Hat (RHT) acquisition is going to be meaningful over the lengthy-term for IBM’s (IBM) enterprise or share price. I worry that crimson Hat can also finally end up being IBM’s (greater precisely Ginni Rometty’s) “Compaq”, as in Hewlett-Packard’s (NYSE:HPE) questionable buy of that business years ago.

The argument that the “sum” of IBM + RedHat is greater than the particular person parts isn't notably mighty in my opinion. i am struggling to keep in mind the interesting value proposition offered via the mixed groups after reading the transcript of the analyst convention call that adopted the announcement. above all, the frequent conception that the joint technology stacks by hook or by crook radically exchange the “calculus of the cloud” simply doesn’t make experience to me. thus, whereas some analysts have expressed difficulty over the $34 billion cost tag, my focal point here is in particular on IBM’s technology arguments and market probability arguments used to justify the purchase.

As a disclosure, I happened to dispose of my ultimate position in IBM in October of this yr, as I begun shedding shares a short time after I wrote IBM – A Turning or Sinking Ship in 2017. I also worked for IBM years in the past inside the methods administration division, long before the word “cloud” existed in the terminology of average tips know-how.

within the sections that observe, any referenced rates are pulled from the in the hunt for Alpha transcript of IBM and purple Hat’s analyst convention call which followed the acquisition announcement, until otherwise stated. I’m additionally attaching the transcript to this document for convenience.

2.0 WHICH CLOUD IS IT

Ginni Rometty notes that “[IBM] could be the undisputed quantity [1] chief in hybrid-cloud….[with the acquisition of] crimson Hat, the world’s leading company of open-cloud solution[s] and the emerging chief in the platform for hybrid-cloud and multi-cloud.” Ms. Rometty, and different individuals on the analyst name, use “hybrid-cloud” and “multi-cloud” terminology slightly interchangeably; but, I consider some definition is beneficial to add some precision to our evaluation.

Wikipedia gives a nice, succinct definition of multi-cloud:

Multi-cloud is the use of numerous cloud computing and storage capabilities in a single heterogeneous architecture.

We note that in a multi-cloud structure, the clouds may also be public, private, or some mixture of each.

And here is IBM’s definition of “hybrid-cloud”:

A hybrid cloud makes use of a private cloud basis combined with the strategic integration and use of public cloud services.

So, a hybrid-cloud makes use of at least one inner most cloud, along with as a minimum one public cloud and for this reason is fairly characterized by means of a non-public-public structure. we will then consider of a hybrid-cloud as a kind of a multi-cloud.

Multi-Cloud and Hybrid-Cloud Diagram

source: Yves Sukhu

This big difference is a bit of essential seeing that IBM stresses its means to in particular trap a large share of the growing hybrid-cloud architecture market by means of purple Hat’s applied sciences.

3.0 QUESTIONABLE ASSUMPTIONS

With our definitions in hand, let’s check why IBM is doing this deal. individually, the reasons expressed on the analyst name boil all the way down to an acquisition predicated upon three main assumptions:

  • together, there's a unique synergy between IBM and pink Hat’s technology stacks such that the mixture offers powerful differentiation within the areas of hybrid-cloud and multi-cloud computing versus competing solutions from the likes of AWS (AMZN), Microsoft Azure (MSFT), Google Compute (GOOG), and so on.
  • Hybrid-cloud and multi-cloud computing solutions will (doubtless) power larger deal sizes and be more ecocnomic for IBM, with many commercial enterprise consumers simply beginning to move the majority of their purposes to heterogeneous cloud architectures.
  • The hybrid-cloud market goes to be value $1 trillion.
  • undoubtedly, any flaws in these assumptions would weaken the premise for the deal itself. Let’s determine each.

    three.1 FIRST ASSUMPTION: something OPEN, whatever thing wonderful?

    Ginni Rometty presents investors here client requirement as a groundwork for the wedding with crimson Hat:

    “…The #1 issue [customers are] asserting to us is, hello, we – these other clouds, they’re proprietary. We desire an open solution [with] no lock-in. So move it across diverse cloud environments with out a lock-in, [that’s] what the two of us do together…after which they say, it has obtained to address statistics safety in a multi-cloud environment and then give us a means to manage a multi-cloud ambiance.”

    There are a number of issues to unpack here. Ms. Rometty means that “other” clouds are proprietary and there is a client requirement for “an open answer”. I don’t exactly take into account what she’s getting at here. She implies within the quote that valued clientele get “locked in” with (definite) cloud environments; but, in its place, these consumers are looking to be in a position to movement their purposes with ease from cloud to cloud. i'm scratching my head as a result of what Ms. Rometty’s “customers” are calling lock-in looks to be related to their software structure, and not the cloud atmosphere they are working on. A poorly designed cloud application will be challenging to move no remember what cloud it's running on. The converse is additionally actual: a well-designed cloud software should be effortless(ier) to circulate from one cloud to an extra. I think about many readers are widespread with the thought and technology of containers, comparable to Docker. For readers that may be unfamiliar with the term, I offer an easy if slightly imprecise rationalization: containers supply a way to package the entire “materials” that an application should run:

    Illustration of Container concept

    supply: Docker/Datamation

    As we see in the illustration above, a container can “include” whatever an software must operate. In somewhat of an over-simplification, if we are looking to move a containerized-application from one cloud to one other, we simply “raise” the container up from its present cloud and drop the container on the brand new cloud. Readers who may additionally now not be familiar with Docker and its container expertise may have an interest to notice that it all started as, and is, an open-supply software venture; the company also raised capital in late 2017 at a $1+ billion valuation.

    So, increasing on the utility of containers:

    “traditionally, applications or workloads frequently needed to be rebuilt earlier than they may well be migrated to an additional ambiance. The answer to here is container expertise. due to the fact containers are isolated from neighboring containers and include every little thing they should run the utility, you can comfortably movement them to another [cloud] environment with out compatibility complications.”

    supply: Kumina

    As this Datamation article notes, “it was…the…users [of cloud services] who demanded that this expertise exist within public clouds that drove the [container] innovations that now exist.” In different phrases, users wanted an easier solution to package and flow their functions between clouds; and that in flip spurred the general public cloud providers (AWS, Azure, Google, IBM, etc.) to provide container deployment elements and functions.

    One closing factor to make about containers is that functions may encompass a couple of containers, by which case container orchestration software is used to automate and simplify the management of all these containers. Kubernetes, an additional open-source venture firstly begun at Google, is among the normal orchestration methods (with Docker Swarm for example of a different).

    Coming back to Ms. Rometty’s point that purchasers don’t are looking to be “locked in” and in its place wish to be in a position to flow functions throughout multiple cloud environments, they (consumers) can certainly try this these days if they design and set up their applications accurately, with containers as an instance of 1 expertise that can also be quite valuable. She, truly, makes this very point stating “…[We] were constructing and we have been very focused on hybrid and multi-cloud…based on open applied sciences. So we’ve developed on containers, Kubernetes…[and] multi-cloud supervisor turned into simply introduced closing week…” however, let’s be clear: the different major cloud service providers (e.g. Amazon, Microsoft, and many others.) also offer container and container orchestration features. for that reason, the IBM Cloud is not basically differentiated on this element; yet, with the crimson Hat acquisition, IBM does gain crimson Hat OpenShift which offers price-added performance constructed around Docker and Kubernetes. whereas there changed into no specific dialogue on the analyst name, in all probability IBM believes that its latest container administration and cloud administration features can be augmented in such a means via OpenShift as to leapfrog the competitors when the use of the “married” technologies for multi-cloud environments. but, if that’s actual, why now not notably talk about the capabilities that the mixed groups will have that could be advanced to others?

    Frankly, it appears to me that IBM’s present cloud capabilities added to OpenShift are not going to be a large “game changer”. first off, any integration between IBM’s cloud expertise stack and crimson Hat’s will make the effort; time which opponents will actually use to their skills to make sure they don't seem to be left behind. second, I’ve already noted that OpenShift is in accordance with Docker and Kubernetes which potential pink Hat’s cost-add is built across the identical core used by way of many others; however, the competition has and should continue to improve an identical cost-added offerings as well. Third, if there became some “killer” set of cloud functionalities that the mixed stacks would generate, I’d want to consider the companies would have made that clear; however they have not (as a minimum no longer yet). Fourth, there is nothing that “ties” OpenShift to the IBM Cloud; accept as true with that purple Hat’s personal OpenShift deployment “offerings” page – which I captured presently after the deal announcement – in reality highlights AWS as a deployment platform:

    pink Hat OpenShift Deployment Tiers

    source: pink Hat

    Now, pink Hat additionally offers OpenStack, in line with an additional set of open-source applied sciences, which will also be used by using organizations to construct out their own deepest clouds and has synergy with Ansible, purple Hat’s language for DevOps. OpenStack hence supports IBM’s initiatives round hybrid-cloud deployments. although, as with OpenShift, I’m now not absolutely convinced that placing this solution below an IBM umbrella is going to cause a incredibly differentiated providing, nor to a sudden acceleration of private cloud adoption amongst enterprise consumers. First off, IBM already had its personal solution stack during this area, IBM Cloud inner most. on account that IBM expressed such bullish sentiment about the hybrid-cloud market on the analyst call, I’m in reality a little surprised this certain solution offering changed into no longer outlined throughout the name. Assuming the hybrid-cloud enviornment is as “hot” as IBM suggests, one could expect that IBM inner most Cloud has been selling neatly; why now not call attention to the technology then? here is possibly a refined point and could be an improper extrapolation on my part, nevertheless it leads me to ask yourself if the hybrid-cloud market is as strong as IBM suggests it's, and will be. also as the up to now linked article notes, IBM is not on my own with an providing here, nor had been they “first” to market with one. Microsoft added Azure Stack over a yr earlier than IBM introduced its competing answer to market. IBM may argue that Azure Stack, for example, is proprietary whereas their open-supply platform offers customers all the freedom and benefits that open-supply solutions deliver. It’s a worthwhile argument, and it could more strongly aid Ms. Rometty’s remark that customers don’t wish to be locked-in. after all, with an open-supply-based mostly deepest cloud platform, a consumer can regulate and lengthen it as they desire, which certainly is not possible to the same extent with a closed answer. it will have been valuable if IBM provided some facts aspects to have in mind if a vogue toward open-source exists inside the hybrid-cloud market, and principally for private-cloud deployments. within the absence of particulars, i am left a bit of skeptical that red Hat OpenStack goes to materially change the “power” of IBM’s hybrid (deepest/public) cloud providing.

    If we tie all of this again to Ms. Rometty’s quote initially of the area, it looks to fortify that consumer comments round “an open [cloud] solution and not using a lock-in” seem slightly invalid when when you consider that the technologies (e.g. containers, orchestration) which have already advanced to provide cloud clients with the utility portability that they want. The comment has better validity when one considers the architectural possibilities of a personal cloud within a hybrid-cloud environment; however, as I argue above, there appears to be an absence of statistics which might suggest valued clientele lean toward non-proprietary (e.g. open-source-primarily based) deepest cloud deployments.

    To summarize, I don’t (at the moment) see anything else definitely wonderful that emerges through a mixture of both groups’ cloud stacks. To be fair, the organizations need time to improve tightly built-in solutions, and IBM is yet to follow the vigor of its building organization against pink Hat’s technologies. but, if I’m correct that “there isn't an awful lot to look right here” when it comes to the joint stacks, this insight would, of course, at once undermine Ms. Rometty’s suggestion that both groups may be a transparent leader, particularly in hybrid-cloud options.

    three.2 2d ASSUMPTION: shoppers are just GETTING all started

    Ms. Rometty mentions, more than once, that we're coming into a second part of cloud adoption (“chapter 2” as she calls it). within the first part, customers moved their “easiest” workloads to the cloud with a value-savings focus. These workloads represented the prevalent Pareto-rule 20% of customer functions; and as a consequence, eighty% of applications stay to be transitioned to the cloud. Ms. Rometty states:

    “[Customers have] acquired to move [these remaining 80% of applications]. They both ought to rewrite, refactor, make a decision what goes the place, secure the facts. These are inhibitors that stop them from going [to the cloud]. So here's handiest going to be achieved this circulation to the 80%, in case you can circulation facts and applications across diverse cloud[s], make that moveable…”

    She continues…

    “but this is an inflection element, and if [customers are] going to get previous that and flow the different eighty% which is ready all their methods and their facts they want what we’re going to offer together, this powerful atmosphere. And so this eighty% is…about…unlocking enterprise price…the usual customers has a thousand application[s] and the commonplace client already has 5…that we see some as many as many as 16 clouds.”

    the first remark, “[customers have] got to movement…”, is price debating. good judgment tells us that not all purposes are always an excellent fit for a cloud deployment for any number of explanations: required dependencies don't seem to be with ease replicated in a cloud ambiance, protection concerns, lack of charge-reductions, and so forth. So, consumers certainly do not have to move the bulk of their functions to a cloud architecture. youngsters, possibly Ms. Rometty is enjoying just a little together with her phrases, and is asserting with slightly of “dressing” that the style towards cloud adoption will continue…which it evidently will.

    but, I believe there is room to problem what she says within the next few statements. She explains that “[customers] both ought to rewrite, refactor, come to a decision what goes the place…” certainly, IBM and other technology providers will, as they have already got, be afforded with opportunities to support consumers migrate certain functions to cloud environments. That’s first rate news for IBM’s very colossal carrier enterprise, and there is intent to think the features neighborhood will benefit slightly from the pink Hat buy. These opportunities basically certainly grow in scope and salary/earnings expertise to the extent that these purposes are migrated to incredibly disbursed fashions working on (possibly) heterogeneous cloud systems (e.g. multi-cloud). So, I consider Jim Kavanaugh, IBM’s CFO, as it should be cited that “[distributed cloud solutions] hastens our mix shift to larger price...and is accretive to our gross earnings margin…”

    however, there is a counter-argument to believe right here. in place of rewriting/refactoring latest legacy applications, valued clientele might also as an alternative opt for “off-the-shelf” options (SaaS or otherwise) which may also show to be more low in cost, contemporary, and simpler to preserve. for example, Salesforce.com (CRM) and Workday (WDAY) actually didn’t obtain their market penetration as a result of customers opted to redecorate any homegrown CRM and HR purposes respectively. unluckily, IBM doesn’t focus on the COTS method and its skills affect on their projections for transforming into their cloud related revenues.

    moving to IBM’s claim that multi-cloud environments may be extra regular in the future, as per Ms. Rometty’s commentary that “the common client already has 5 [clouds]…”, there is some statistics to backup what the company is saying here: a TechRepublic survey from 2017, for example, mentioned that most of companies surveyed had already adopted a hybrid-cloud architecture. however, we recognize that IT tends to move in cycles. believe about what happened with the customer-server computing paradigm where “server sprawl” at last gave strategy to server explanation and a push for homogeneity amongst programs. Is it no longer feasible that we might also see whatever identical with cloud, where customers “awaken” sooner or later and ask themselves why they have got 5 clouds once they can be able to operate with 1? accept as true with one of the crucial leading specifications for the Pentagon’s present $10 billion JEDI cloud project: they're (for the second) insistent that the challenge award and linked computing workloads will go/run on a single cloud. As readers can also comprehend, IBM is likely one of the bidders on the task and formalized their objection to the govt Accountability workplace (GAO) for the requirement of a homogenous cloud ambiance. Assuming the Pentagon gets its means and is a success with its deployment, if the branch of protection (DOD) can operate on a single cloud, then why does a given enterprise need upwards of sixteen clouds (the use of the “intense” illustration from IBM’s quote)?

    The overarching theme here is that Ms. Rometty’s position that the “remaining” 80% of legacy consumer applications are just waiting to be moved into a multi-cloud environment has vulnerable aspects. however it had been strong, I’m no longer sure IBM essential to spend $34 billion on red Hat to catch these alternatives. I already argued within the outdated area that IBM had present capabilities in the same cloud technology areas the place crimson Hat operates. If we believe about Ms. Rometty’s remark about “rewriting/refactoring”, what does purple Hat offer right here that IBM doesn't already have? this is work that sits squarely in the area of IBM’s functions community; a bunch that may “plug in” pink Hat’s know-how, or some other cloud expertise, the place it makes experience in keeping with client requirements.

    but, the pink Hat acquisition aside, if it seems that multi-cloud architectures at last “cut back” to easier, single cloud environments which deliver ample robustness and reliability to fulfill most customer necessities, then this “cloud clarification” may have a dramatic impact on IBM’s suitable-line and bottom-line growth forecasts considering the fact that the business is tying both metrics peculiarly to its opportunity with “high-value” multi-cloud options.

    three.three THIRD ASSUMPTION: IS $1 TRILLION FOR HYBRID-CLOUD realistic?

    Ms. Rometty asserts that the market for hybrid-clouds will develop to over $1 trillion. She states:

    “And to steer in the second chapter, this is going to be about hybrid-cloud. In hybrid-cloud is an emerging $1 trillion market…I imply what we did became look and we see a scale of a $1 trillion market…We mentioned to ourselves and continually saved asserting: What will we do more suitable to tackle the needs of our consumers? How can we accelerate our means to move after that? And knowing and there’s definitely an important point, realizing that Linux is the fastest growing platform available. And this just this 12 months, it grew to become the number 1 platform both on-prem and within the cloud.”

    all through the analyst name, there become no point out of exactly when the market for hybrid cloud is anticipated to attain $1 trillion in price, nor the CAGR for this certain phase of the overall cloud market. I struggled to find respectable data in support of IBM’s projection right here, youngsters Market analysis Media presents a forecast of $1 trillion for the total cloud market by means of 2024. interestingly, the Market analysis Media document synopsis highlights the fast starting to be/excessive precedence expertise segments in the cloud market, but multi-cloud and hybrid-cloud are not mentioned in that context. this text, which changed into referenced in section 3.1, charges IBM in 2017 as saying “they expect companies to spend more than $50 billion a yr worldwide beginning [in 2017] to enhance inner most clouds, with the boom price hitting 15 to 20 percent a 12 months via 2020.” using these figures as a proxy for the ordinary hybrid-cloud market, it would undoubtedly take rather some time to reach $1 trillion in complete cost even on the high end of the growth latitude.

    One aspect technology leaders seem to be principally good at is arising with very big numbers when describing their total addressable market (TAM). Admittedly, I’m not certain if IBM’s estimate is realistic right here or now not on account that…who really is aware of at this time how massive the hybrid-cloud market may become? In support of IBM’s forecast, the up to now mentioned article notes that “earlier [in 2017], IDC analysts released a survey that indicated that almost eighty percent of large businesses with 1,000 or more personnel already have a hybrid cloud strategy in area. moreover, 51.four p.c are using each public and personal cloud infrastructures, and 29.2 percent predict to do the equal within the subsequent year.” These metrics are advantageous to aid IBM’s argument, however they might even be interpreted to indicate that most enormous valued clientele already have a hybrid-cloud in region, and as a consequence new hybrid-cloud deployments could truly decrease relocating forward. additional, if we keep in mind the discussion in area 3.2 round customers deciding upon COTS/SaaS functions, as neatly as the chance that single cloud architectures could in the end set up themselves as the dominant model, then it’s conceivable that a $1 trillion hybrid-cloud market may additionally not materialize.

    four.0 CONCLUSION

    “Whoa” became supposedly Steve Ballmer’s (former Microsoft CEO) reaction upon hearing in regards to the IBM-pink Hat deal. in all probability that single note gold standard describes the current sentiment of many others.

    The leading thrust of what I’ve offered in this article is that i am nonetheless struggling to take into account what key technologies IBM receives with crimson Hat that they didn’t already have, and why they felt they vital to spend 1/3 of their market cap on an organization that is just producing just a few hundred million in cloud solution earnings (youngsters their boom fee is high). nonetheless, the “math” doesn’t add up for me, however in all probability it's going to in time as IBM and crimson Hat more advantageous clarify their exciting cost proposition.

    Readers can also rightfully factor out that I’ve omitted the potentialities for crimson Hat Linux and their middleware stack beneath IBM in my evaluation. In regard to the latter, I think IBM’s ownership of purple Hat’s middleware stack is probably going to create some confusion, as a minimum in the short time period. IBM and purple Hat will absolutely have to determine how to place WebSphere versus JBoss. And as other authors have counseled, red Hat business Linux (RHEL) may eventually supplant AIX as IBM’s de facto UNIX distribution. The linked migration work would possibly force a good quantity of know-how and guide capabilities. Ms. Rometty stated in a single of the previously outlined quotes that Linux is the fastest starting to be operating gadget within the cloud and on-premise. however, be aware that she did not say that RHEL is the quickest turning out to be Linux distribution. To that end, there is a few facts suggesting that Ubuntu is starting to be faster within the business Linux section. devoid of greater data from IBM and purple Hat, it’s really somewhat challenging to quantify the impact of pink Hat’s Linux and JBoss product units to IBM over the long-term.

    As outlined, I are expecting that IBM and red Hat will give more desirable readability on the strategic price-add of the two companies as we circulate into 2019, and the way they intend to mix their stacks to improved compete in opposition t the likes of AWS, Microsoft, and Google. i am hoping they do; as a result of obviously traders will send the stock reduce (than it already is) if most turn into satisfied the sum of the agencies lacks incremental price. Yet, while IBM/pink Hat supply additional particulars to the market, as I’ve outlined herein there are a few counter-arguments which undermine the assumptions that this deal is predicated upon. in my opinion, the calculus of the cloud stays the equal in the intervening time.

    supporting documents

    ibm_redhat_acquisition_transcript.pdf

    Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions in the next seventy two hours.

    I wrote this text myself, and it expresses my own opinions. i'm not receiving compensation for it (aside from from in the hunt for Alpha). I have no business relationship with any company whose inventory is mentioned in this article.


    IBM’s purchase of red Hat highlights starting to be energy of technology giants | killexams.com Real Questions and Pass4sure dumps

      by Mike Ingram10 November 2018

    purple Hat and IBM officers introduced a definitive agreement on October 28, beneath which IBM will acquire the open source business Linux business for a money cost of $34 billion. IBM is paying $190 per share for pink Hat inventory, a 63 p.c top class to its closing expense of $116.sixty eight on the old Friday. it is the greatest acquisition via IBM in its 107-year history.

    The acquisition is the latest case of colossal corporations swallowing up prior to now independent open supply organizations and the community of developers round them as they grow ever bigger and greater effective. Nowhere is that this more general than amongst agencies competing in the so-called public cloud market, by which IBM trails in the back of Amazon, Microsoft and Google.

    in the 10 years from 2007 to 2017, the number of Microsoft employees grew from seventy nine,000 to 124,000. Google had sixteen,805 in 2007 in comparison to fifty seven,000 in 2017. The variety of personnel in Amazon internet functions (AWS) is not obtainable, but the complete variety of personnel at Amazon grew from 17,000 in 2007 to 566,000 in 2017. IBM, the dominant tech company for lots of the twentieth century saw a moderate reduction from 386,000 to 366,000 in fully owned subsidiaries for the same length.

    IBM hopes that the acquisition of red Hat will give it a aggressive facet in the so-known as hybrid cloud, which mixes public cloud choices with private clouds in data centers run via a corporation. In a press release, Ginni Rometty, IBM chairman, president and chief executive officer, referred to, “The acquisition of crimson Hat is a video game-changer. It adjustments everything in regards to the cloud market.” Rometty claimed that “IBM will turn into the realm’s #1 hybrid cloud company, offering businesses the most effective open cloud answer if you want to free up the full cost of the cloud for his or her groups.”

    Jim Whitehurst, president and CEO of crimson Hat, spoke of, “Open supply is the default option for contemporary IT solutions, and that i’m particularly pleased with the role crimson Hat has played in making that a fact within the enterprise.”

    IBM has had its personal close relationship with open source utility over the past twenty years, recognizing it as a superior construction model to these of proprietary methods. With the open source mannequin, IBM good points access to hundreds of gifted developers globally who would no longer always work for the company.

    Even Microsoft, whose former CEO Steve Balmer described open source as “a melanoma that attaches itself in an intellectual property sense to every little thing it touches” and “communism,” has in contemporary years adopted the open supply model for a number of projects. Sixty percent of cases running in Microsoft’s Azure cloud are Linux based mostly. remaining month Microsoft completed its acquisition of GitHub for $7.5 billion. The open supply code repository and building platform has over 31 million users and hosts more than ninety six million repositories from 2.1 million groups.

    crimson Hat turned into based in 1993 by way of Bob younger and Marc Ewing. young ran a catalog carrier that allotted utility while Ewing was establishing his personal distribution of the open source GNU/Linux operating system which he referred to as crimson Hat Linux. The distribution bundled together various software and utilities developed via the Free utility foundation led by way of Richard Stallman and the Linux kernel developed by Linus Torvalds. each the GNU and Linux have been released as open source software that may well be used by using any one freed from cost. most significantly, the GNU normal Public License requires that the human readable supply code be made obtainable and offers users the right to alter that code. This was in stark distinction to the proprietary licenses of organizations equivalent to Microsoft, Apple and IBM.

    pink Hat became the primary business Linux distribution with a salary model of distributing the utility without charge and charging a subscription service for aid, updates and expert functions. It has maintained a detailed relationship with the open supply developer neighborhood and contributed to a lot of projects.

    today crimson Hat is a major business enterprise in its personal right, with over 12,000 employees worldwide. applying the code developed by means of thousands of volunteer programmers, pink Hat promptly established itself because the leading distributor of Linux application to business companies. In August 1999, purple Hat went public, reaching the eighth-biggest first-day benefit within the background of Wall highway. In 2000 the company opened crimson Hat India and started a sequence of acquisitions, most recently buying the Linux Container distribution, CoreOS, for $250,000,000 in January this yr.

    a particular target of IBM’s cloud strategy is JEDI, the $10 billion Joint business protection Infrastructure mission of the branch of defense. The task is intended to modernize and consolidate the defense branch’s IT methods into an business-degree business cloud. IBM has issued a protest in opposition t the JEDI solicitation, pointing out, “all the way through the 12 months-long JEDI saga, countless concerns had been raised that this solicitation is geared toward a selected supplier. At no factor have steps been taken to alleviate these concerns.”

    IBM are complaining certainly about a requirement that bidders meet the defense tips programs company influence level 6 security capabilities to tackle secret-stage defense force guidance. Two senior Republicans on the apartment Appropriations Committee, Reps. Steve Womack (R-Ark.) and Tom Cole (R-Okla.) have referred to as for the Pentagon’s inside watchdog to open an investigation into the cloud procurement, elevating the same concerns in an October 23 letter to Glenn A. exceptional, the performing inspector regular at the branch of defense. on the time the suggestion was announced, only AWS met this requirement. Microsoft introduced closing month that it's going to quickly meet the requirement.

    Google withdrew from the JEDI bid last month following protests from employees. Microsoft went forward with the bid despite opposition from employees. Nextgov reviews that CEO Satya Nadella regarded at the united states Naval Academy in Annapolis, Maryland, October 10. Nadella reportedly spoke of Microsoft has a four-decades-historic partnership with the protection department and delivered that the USA “defense force have a fundamental grounding on what it capacity to installation any know-how or practice which is ethically used.”

    Amazon is also going forward with its bid and criticized Google’s resolution to tug out. speaking on the WIRED25 summit on October 15, Amazon CEO Jeff Bezos spoke of, “one of the crucial jobs of a senior leadership crew is to make the appropriate resolution even when [it] is unpopular.” He added, “If large tech organizations are going to turn their returned on the DOD, then this nation goes to be in hindrance.”

    With its contribution to open supply, crimson Hat has maintained a undeniable recognize amongst builders. however a part of the enchantment to IBM is the enterprise’s close relationship with the us militia. The headline of a 2012 blog publish boasts of “purple Hat’s Decade of Collaboration with government and Open supply community.”

    The authors cite a 2003 study that offered DOD-huge counsel on open supply utility, “which implicitly permitted its acquisition, building, and use.”

    The weblog put up states that at the present pink Hat released the first version of crimson Hat commercial enterprise Linux and that, “The army deployed purple Hat’s operating equipment in its Blue drive Tracker device, which lived in jeeps and tanks on the battlefield.” It goes on to cite major ordinary Nicholas Justice, “the person chargeable for Blue drive Tracker,” saying later: “after we rolled into Baghdad, we did it the usage of open source.”

    Retired standard Hugh Shelton joined the Board of administrators of purple Hat corporation in April 2003 and changed into elected that board’s chairman in 2010. Shelton served as chairman of the Joint Chiefs of staff from 1997 to 2001.

    A June 26 article in the Herald solar states: “purple Hat leaders had been speaking to protection officials about its JEDI cloud-functions contract and consider the company is ‘extremely smartly-positioned’ to provide the challenge’s lower back-end workings, purple Hat Chief economic office Eric Shander observed in a contemporary interview.”

    IBM is pushing for the DOD to adopt a hybrid cloud approach, applying assorted suppliers in place of a single seller. In buying pink Hat they gain manage of the working system that allows you to run on something cloud infrastructure is subsequently chosen, at the side of orchestration equipment that make cloud deployments easier. if they can’t get the total $10 billion JEDI cake, they as a minimum have a probability of a slice, along side more profitable contracts down the highway.

    The author also recommends:

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    dear Colleague Letter: Addition of IBM as a Cloud useful resource issuer to the FY 2018 BIGDATA Solicitation | killexams.com Real Questions and Pass4sure dumps

    April 13, 2018

    pricey Colleagues:

    through this pricey Colleague Letter (DCL), the national Science groundwork's (NSF) Directorate for laptop and counsel Science and Engineering (CISE) needs to inform the community that IBM has joined as one of the most cloud aid providers for the fiscal 12 months (FY) 2018 critical techniques, applied sciences, and Methodologies for Advancing Foundations and functions of large information Sciences and Engineering (BIGDATA) software solicitation(see https://www.nsf.gov/funding/pgm_summ.jsp?pims_id=504767 for greater assistance in regards to the software).

    As heritage, NSF announced ultimate year the availability of a cloud choice as a part of the FY 2017 BIGDATA solicitation, with participation by using Amazon internet capabilities (AWS), Google Cloud (GCP), and Microsoft Azure. The cloud alternative enabled initiatives to request cloud materials in help of their large statistics research and training activities, principally specializing in huge-scale experimentation and scalability reviews.

    This option continues to be in vicinity for the FY 2018 BIGDATA solicitation, with AWS, GCP, and Microsoft Azure continuing their participation. additionally, IBM has now joined the BIGDATA program as some of the cloud aid suppliers, beneath the identical terms and prerequisites as applicable to the entire other cloud suppliers. The corresponding terms and stipulations are described within the FY 2018 BIGDATA program solicitation, available at https://www.nsf.gov/publications/pub_summ.jsp?ods_key=nsf18539.

    Proposers may additionally use the following IBM elements to enhance the whole charge of cloud supplies together with an annual utilization plan over the period of the tasks:

    As described within the solicitation, the request for cloud substances can be reviewed along with the relaxation of the thought. credits can be allotted both for the cloud provider requested in the concept, or for equivalent resources from an choice cloud issuer.

    Please examine the whole solicitation cautiously before getting ready your suggestion.

    Please note that the submission deadline for the FY 2018 BIGDATA solicitation is may additionally 7-14, 2018.

    As stated within the software solicitation, the NSF BIGDATA software webpage located at https://www.nsf.gov/funding/pgm_summ.jsp?pims_id=504767 will proceed to be up to date to listing all cloud providers at the moment collaborating within the program. As of the date of this DCL, these are Amazon, Google, Microsoft, and now IBM.

    Questions concerning the BIGDATA program solicitation, together with the cloud choice, may still be directed to the cognizant application administrators listed within the solicitation.

    in actual fact,Jim KuroseAssistant DirectorComputer and assistance Science and Engineering




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    Foundations of IBM Cloud Computing Architecture V3

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    IBM/Red Hat - The Calculus Of The Cloud Stays The Same | killexams.com real questions and Pass4sure dumps

    1.0 EXECUTIVE SUMMARY

    Getting right to the point, I’m skeptical that the Red Hat (RHT) acquisition is going to be meaningful over the long-term for IBM’s (IBM) business or share price. I fear that Red Hat may wind up being IBM’s (more precisely Ginni Rometty’s) “Compaq”, as in Hewlett-Packard’s (NYSE:HPE) questionable purchase of that company years ago.

    The argument that the “sum” of IBM + RedHat is more than the individual parts is not especially strong in my view. I am struggling to understand the unique value proposition offered by the combined companies after reading the transcript of the analyst conference call that followed the announcement. Specifically, the general idea that the joint technology stacks somehow radically change the “calculus of the cloud” just doesn’t make sense to me. Accordingly, whereas some analysts have expressed concern over the $34 billion price tag, my focus here is mainly on IBM’s technology arguments and market opportunity arguments used to justify the purchase.

    As a disclosure, I happened to eliminate my remaining position in IBM in October of this year, as I began shedding shares a short time after I wrote IBM – A Turning or Sinking Ship in 2017. I also worked for IBM years ago within the systems management division, long before the word “cloud” existed in the terminology of common information technology.

    In the sections that follow, any referenced quotes are pulled from the Seeking Alpha transcript of IBM and Red Hat’s analyst conference call which followed the acquisition announcement, unless otherwise noted. I’m also attaching the transcript to this report for convenience.

    2.0 WHICH CLOUD IS IT

    Ginni Rometty notes that “[IBM] will be the undisputed number [1] leader in hybrid-cloud….[with the acquisition of] Red Hat, the world’s leading provider of open-cloud solution[s] and the emerging leader in the platform for hybrid-cloud and multi-cloud.” Ms. Rometty, and other participants on the analyst call, use “hybrid-cloud” and “multi-cloud” terminology somewhat interchangeably; but, I think some definition is useful to add some precision to our analysis.

    Wikipedia provides a nice, succinct definition of multi-cloud:

    Multi-cloud is the use of multiple cloud computing and storage services in a single heterogeneous architecture.

    We note that in a multi-cloud architecture, the clouds can be public, private, or some combination of both.

    And here is IBM’s definition of “hybrid-cloud”:

    A hybrid cloud uses a private cloud foundation combined with the strategic integration and use of public cloud services.

    So, a hybrid-cloud uses at least one private cloud, along with at least one public cloud and thus is distinctly characterized by a private-public architecture. We can then think of a hybrid-cloud as a form of a multi-cloud.

    Multi-Cloud and Hybrid-Cloud Diagram

    Source: Yves Sukhu

    This distinction is somewhat important given that IBM stresses its ability to particularly capture a large share of the growing hybrid-cloud architecture market via Red Hat’s technologies.

    3.0 QUESTIONABLE ASSUMPTIONS

    With our definitions in hand, let’s examine why IBM is doing this deal. In my opinion, the reasons expressed on the analyst call boil down to an acquisition predicated upon three main assumptions:

  • Together, there is a unique synergy between IBM and Red Hat’s technology stacks such that the combination provides strong differentiation in the areas of hybrid-cloud and multi-cloud computing versus competing solutions from the likes of AWS (AMZN), Microsoft Azure (MSFT), Google Compute (GOOG), etc.
  • Hybrid-cloud and multi-cloud computing solutions will (likely) drive larger deal sizes and be more profitable for IBM, with many enterprise customers just starting to move the bulk of their applications to heterogeneous cloud architectures.
  • The hybrid-cloud market is going to be worth $1 trillion.
  • Obviously, any flaws in these assumptions would weaken the premise for the deal itself. Let’s examine each.

    3.1 FIRST ASSUMPTION: SOMETHING OPEN, SOMETHING UNIQUE?

    Ginni Rometty offers investors the following customer requirement as a basis for the marriage with Red Hat:

    “…The number one thing [customers are] saying to us is, hey, we – these other clouds, they’re proprietary. We want an open solution [with] no lock-in. So move it across multiple cloud environments with no lock-in, [that’s] what the two of us do together…And then they say, it has got to address data security in a multi-cloud environment and then give us a way to manage a multi-cloud environment.”

    There are a few things to unpack here. Ms. Rometty suggests that “other” clouds are proprietary and there is a customer requirement for “an open solution”. I don’t exactly understand what she’s getting at here. She implies in the quote that customers get “locked in” with (certain) cloud environments; but, instead, these customers want to be able to move their applications easily from cloud to cloud. I am scratching my head because what Ms. Rometty’s “customers” are calling lock-in seems to be related to their application architecture, and not the cloud environment they are running on. A poorly designed cloud application will be challenging to move no matter what cloud it is running on. The converse is also true: a well-designed cloud application will be easy(ier) to move from one cloud to another. I imagine many readers are familiar with the concept and technology of containers, such as Docker. For readers that may be unfamiliar with the term, I offer a simple if slightly imprecise explanation: containers provide a way to package all the “parts” that an application needs to run:

    Illustration of Container Concept

    Source: Docker/Datamation

    As we see in the illustration above, a container can “contain” whatever an application needs to operate. In a bit of an over-simplification, if we want to move a containerized-application from one cloud to another, we just “lift” the container up from its existing cloud and drop the container on the new cloud. Readers who may not be familiar with Docker and its container technology might be interested to note that it began as, and is, an open-source software project; the company also raised capital in late 2017 at a $1+ billion valuation.

    So, expanding on the utility of containers:

    “Traditionally, applications or workloads generally had to be rebuilt before they could be migrated to another environment. The solution to this is container technology. Since containers are isolated from neighboring containers and include everything they need to run the application, you can easily move them to another [cloud] environment without compatibility problems.”

    Source: Kumina

    As this Datamation article notes, “it was…the…users [of cloud services] who demanded that this technology exist within public clouds that drove the [container] innovations that now exist.” In other words, users wanted an easier way to package and move their applications between clouds; and that in turn spurred the public cloud providers (AWS, Azure, Google, IBM, etc.) to provide container deployment features and services.

    One final point to make about containers is that applications may consist of several containers, in which case container orchestration software is used to automate and simplify the management of all those containers. Kubernetes, another open-source project originally started at Google, is one of the popular orchestration systems (with Docker Swarm as an example of another).

    Coming back to Ms. Rometty’s point that customers don’t want to be “locked in” and instead want to be able to move applications across multiple cloud environments, they (customers) can certainly do that today if they design and deploy their applications appropriately, with containers as an example of one technology that can be quite useful. She, in fact, makes this very point stating “…[We] have been building and we have been very focused on hybrid and multi-cloud…based on open technologies. So we’ve built on containers, Kubernetes…[and] multi-cloud manager was just announced last week…” But, let’s be clear: the other major cloud service providers (e.g. Amazon, Microsoft, etc.) also offer container and container orchestration services. Thus, the IBM Cloud is not purely differentiated on this point; yet, with the Red Hat acquisition, IBM does obtain Red Hat OpenShift which offers value-added functionality built around Docker and Kubernetes. While there was no detailed discussion on the analyst call, perhaps IBM believes that its existing container management and cloud management services will be augmented in such a way by OpenShift as to leapfrog the competition when using the “married” technologies for multi-cloud environments. But, if that’s true, why not specifically talk about the capabilities that the combined companies will have that will be superior to others?

    Frankly, it seems to me that IBM’s existing cloud capabilities added to OpenShift are not going to be a massive “game changer”. First of all, any integration between IBM’s cloud technology stack and Red Hat’s will take some time; time which competitors will certainly use to their advantage to ensure they are not left behind. Second, I’ve already noted that OpenShift is based on Docker and Kubernetes which means Red Hat’s value-add is built around the same core used by many others; but, the competition has and will continue to develop similar value-added offerings as well. Third, if there was some “killer” set of cloud functionalities that the combined stacks would generate, I’d like to think the companies would have made that clear; but they have not (at least not yet). Fourth, there is nothing that “ties” OpenShift to the IBM Cloud; consider that Red Hat’s own OpenShift deployment “offerings” page – which I captured shortly after the deal announcement – actually highlights AWS as a deployment platform:

    Red Hat OpenShift Deployment Tiers

    Source: Red Hat

    Now, Red Hat also offers OpenStack, based on another set of open-source technologies, which can be used by companies to build out their own private clouds and has synergy with Ansible, Red Hat’s language for DevOps. OpenStack therefore supports IBM’s initiatives around hybrid-cloud deployments. However, as with OpenShift, I’m not completely convinced that putting this solution under an IBM umbrella is going to lead to a highly differentiated offering, nor to a sudden acceleration of private cloud adoption among enterprise customers. First off, IBM already had its own solution stack in this area, IBM Cloud Private. Given that IBM expressed such bullish sentiment about the hybrid-cloud market on the analyst call, I’m actually a little surprised this specific solution offering was not mentioned during the call. Assuming the hybrid-cloud area is as “hot” as IBM suggests, one might expect that IBM Private Cloud has been selling well; why not call attention to the technology then? This is perhaps a subtle point and could be an improper extrapolation on my part, but it leads me to wonder if the hybrid-cloud market is as strong as IBM suggests it is, and will be. Also as the previously linked article notes, IBM is not alone with an offering here, nor were they “first” to market with one. Microsoft introduced Azure Stack over a year before IBM brought its competing solution to market. IBM might argue that Azure Stack, as an example, is proprietary whereas their open-source platform gives customers all the freedom and benefits that open-source solutions provide. It’s a worthwhile argument, and it may more strongly support Ms. Rometty’s comment that customers don’t want to be locked-in. After all, with an open-source-based private cloud platform, a customer can modify and extend it as they desire, which obviously is not possible to the same extent with a closed solution. It would have been helpful if IBM offered some data points to understand if a trend toward open-source exists within the hybrid-cloud market, and specifically for private-cloud deployments. In the absence of details, I am left somewhat skeptical that Red Hat OpenStack is going to materially change the “strength” of IBM’s hybrid (private/public) cloud offering.

    If we tie all of this back to Ms. Rometty’s quote at the beginning of the section, it seems to reinforce that customer comments around “an open [cloud] solution with no lock-in” seem somewhat invalid when considering the technologies (e.g. containers, orchestration) that have already evolved to provide cloud users with the application portability that they desire. The comment has greater validity when one considers the architectural possibilities of a private cloud within a hybrid-cloud environment; but, as I argue above, there seems to be a lack of data which would suggest clients lean toward non-proprietary (e.g. open-source-based) private cloud deployments.

    To summarize, I don’t (presently) see anything truly unique that emerges through a combination of the two companies’ cloud stacks. To be fair, the companies need time to develop tightly integrated solutions, and IBM is yet to apply the power of its development organization against Red Hat’s technologies. But, if I’m right that “there is not a lot to see here” in terms of the joint stacks, this insight would, of course, directly undermine Ms. Rometty’s suggestion that the two organizations will be a clear leader, particularly in hybrid-cloud solutions.

    3.2 SECOND ASSUMPTION: CUSTOMERS ARE JUST GETTING STARTED

    Ms. Rometty mentions, more than once, that we are entering a second phase of cloud adoption (“chapter 2” as she calls it). In the first phase, customers moved their “easiest” workloads to the cloud with a cost-savings focus. These workloads represented the familiar Pareto-rule 20% of customer applications; and thus, 80% of applications remain to be transitioned to the cloud. Ms. Rometty states:

    “[Customers have] got to move [these remaining 80% of applications]. They either have to rewrite, refactor, decide what goes where, secure the data. These are inhibitors that stop them from going [to the cloud]. So this is only going to be achieved this move to the 80%, if you can move data and applications across multiple cloud[s], make that portable…”

    She continues…

    “But this is an inflection point, and if [customers are] going to get past that and move the other 80% which is about all their processes and their data they need what we’re going to offer together, this robust environment. And so this 80% is…about…unlocking business value…the average clients has a thousand application[s] and the average client already has 5…that we see some as many as many as 16 clouds.”

    The first comment, “[customers have] got to move…”, is worth debating. Logic tells us that not all applications are necessarily a good fit for a cloud deployment for any number of reasons: required dependencies are not easily replicated in a cloud environment, security concerns, lack of cost-savings, etc. So, customers certainly do not have to move the bulk of their applications to a cloud architecture. Although, perhaps Ms. Rometty is playing a bit with her words, and is saying with a bit of “dressing” that the trend toward cloud adoption will continue…which it clearly will.

    But, I think there is room to challenge what she says in the next few statements. She explains that “[customers] either have to rewrite, refactor, decide what goes where…” Indeed, IBM and other technology providers will, as they already have, be afforded with opportunities to help customers migrate certain applications to cloud environments. That’s good news for IBM’s very large service business, and there is reason to think the services group will benefit somewhat from the Red Hat purchase. These opportunities almost certainly grow in scope and revenue/profit potential to the extent that these applications are migrated to highly distributed models running on (possibly) heterogeneous cloud platforms (e.g. multi-cloud). So, I think Jim Kavanaugh, IBM’s CFO, correctly stated that “[distributed cloud solutions] accelerates our mix shift to higher value...and is accretive to our gross profit margin…”

    But, there is a counter-argument to consider here. Rather than rewriting/refactoring existing legacy applications, customers may instead opt for “off-the-shelf” solutions (SaaS or otherwise) which may prove to be more cost-effective, modern, and easier to maintain. For example, Salesforce.com (CRM) and Workday (WDAY) certainly didn’t achieve their market penetration because customers opted to redesign any homegrown CRM and HR applications respectively. Unfortunately, IBM doesn’t discuss the COTS approach and its potential impact on their projections for growing their cloud related revenues.

    Moving to IBM’s claim that multi-cloud environments will be more prevalent in the future, as per Ms. Rometty’s statement that “the average client already has 5 [clouds]…”, there is some data to backup what the company is saying here: a TechRepublic survey from 2017, for example, noted that the majority of companies surveyed had already adopted a hybrid-cloud architecture. But, we know that IT tends to move in cycles. Think about what happened with the client-server computing paradigm where “server sprawl” eventually gave way to server rationalization and a push for homogeneity among systems. Is it not possible that we may see something similar with cloud, where customers “wake up” one day and ask themselves why they have 5 clouds when they might be able to operate with 1? Consider one of the main specifications for the Pentagon’s current $10 billion JEDI cloud project: they are (for the moment) insistent that the project award and associated computing workloads will go/run on a single cloud. As readers may know, IBM is one of the bidders on the project and formalized their objection to the Government Accountability Office (GAO) for the requirement of a homogenous cloud environment. Assuming the Pentagon gets its way and is successful with its deployment, if the Department of Defense (DOD) can operate on a single cloud, then why does a given company need upwards of 16 clouds (using the “extreme” example from IBM’s quote)?

    The overarching theme here is that Ms. Rometty’s position that the “remaining” 80% of legacy customer applications are just waiting to be moved into a multi-cloud environment has weak points. Even if it were strong, I’m not sure IBM needed to spend $34 billion on Red Hat to capture these opportunities. I already argued in the previous section that IBM had existing capabilities in the same cloud technology areas where Red Hat operates. If we think about Ms. Rometty’s comment about “rewriting/refactoring”, what does Red Hat offer here that IBM does not already have? This is work that sits squarely in the domain of IBM’s services group; a group that could “plug in” Red Hat’s technology, or any other cloud technology, where it makes sense based on customer requirements.

    But, the Red Hat acquisition aside, if it turns out that multi-cloud architectures eventually “reduce” to simpler, single cloud environments which provide sufficient robustness and reliability to meet most customer requirements, then this “cloud rationalization” could have a dramatic impact on IBM’s top-line and bottom-line growth forecasts since the company is tying both metrics specifically to its opportunity with “high-value” multi-cloud solutions.

    3.3 THIRD ASSUMPTION: IS $1 TRILLION FOR HYBRID-CLOUD REALISTIC?

    Ms. Rometty asserts that the market for hybrid-clouds will grow to over $1 trillion. She states:

    “And to lead in the second chapter, this is going to be about hybrid-cloud. In hybrid-cloud is an emerging $1 trillion market…I mean what we did was look and we see a scale of a $1 trillion market…We said to ourselves and constantly kept saying: What can we do better to address the needs of our clients? How do we accelerate our ability to go after that? And knowing and there’s really an important point, knowing that Linux is the fastest growing platform out there. And this just this year, it became the number one platform both on-prem and in the cloud.”

    During the analyst call, there was no mention of exactly when the market for hybrid cloud is expected to reach $1 trillion in value, nor the CAGR for this specific segment of the overall cloud market. I struggled to find good data in support of IBM’s projection here, although Market Research Media offers a forecast of $1 trillion for the entire cloud market by 2024. Interestingly, the Market Research Media report synopsis highlights the fast growing/high priority technology segments within the cloud market, but multi-cloud and hybrid-cloud are not mentioned in that context. This article, which was referenced in Section 3.1, quotes IBM in 2017 as saying “they expect companies to spend more than $50 billion a year worldwide starting [in 2017] to develop private clouds, with the growth rate hitting 15 to 20 percent a year through 2020.” Using those figures as a proxy for the overall hybrid-cloud market, it would obviously take quite some time to reach $1 trillion in total value even at the high end of the growth range.

    One thing technology leaders seem to be particularly good at is coming up with very large numbers when describing their total addressable market (TAM). Admittedly, I’m not sure if IBM’s estimate is realistic here or not since…who really knows right now how big the hybrid-cloud market could become? In support of IBM’s forecast, the previously mentioned article notes that “earlier [in 2017], IDC analysts released a survey that indicated that almost 80 percent of large organizations with 1,000 or more employees already have a hybrid cloud strategy in place. In addition, 51.4 percent are using both public and private cloud infrastructures, and 29.2 percent expect to do the same within the next year.” These metrics are useful to support IBM’s argument, but they could also be interpreted to suggest that most large customers already have a hybrid-cloud in place, and thus new hybrid-cloud deployments could actually decrease moving forward. Further, if we recall the discussion in Section 3.2 around customers opting for COTS/SaaS applications, as well as the possibility that single cloud architectures could ultimately establish themselves as the dominant model, then it’s conceivable that a $1 trillion hybrid-cloud market may not materialize.

    4.0 CONCLUSION

    “Whoa” was supposedly Steve Ballmer’s (former Microsoft CEO) reaction upon hearing about the IBM-Red Hat deal. Perhaps that single word best describes the current sentiment of many others.

    The main thrust of what I’ve presented in this article is that I am still struggling to understand what key technologies IBM gets with Red Hat that they didn’t already have, and why they felt they needed to spend 1/3 of their market cap on a company that is only generating a few hundred million in cloud solution revenue (although their growth rate is high). Still, the “math” doesn’t add up for me, although perhaps it will in time as IBM and Red Hat better explain their unique value proposition.

    Readers may rightfully point out that I’ve ignored the prospects for Red Hat Linux and their middleware stack under IBM in my analysis. In regard to the latter, I think IBM’s ownership of Red Hat’s middleware stack is likely to create some confusion, at least in the short term. IBM and Red Hat will obviously have to figure out how to position WebSphere versus JBoss. And as other authors have suggested, Red Hat Enterprise Linux (RHEL) might eventually supplant AIX as IBM’s de facto UNIX distribution. The related migration work would presumably drive a fair amount of technology and support services. Ms. Rometty noted in one of the previously mentioned quotes that Linux is the fastest growing operating system in the cloud and on-premise. But, note that she did not say that RHEL is the fastest growing Linux distribution. To that end, there is some data suggesting that Ubuntu is growing faster in the enterprise Linux segment. Without more data from IBM and Red Hat, it’s really quite challenging to quantify the impact of Red Hat’s Linux and JBoss product sets to IBM over the long-term.

    As mentioned, I expect that IBM and Red Hat will provide greater clarity on the strategic value-add of the 2 companies as we move into 2019, and how they intend to combine their stacks to better compete against the likes of AWS, Microsoft, and Google. I hope they do; because clearly investors will send the stock lower (than it already is) if most become convinced the sum of the companies lacks incremental value. Yet, even as IBM/Red Hat provide additional details to the market, as I’ve outlined herein there are several counter-arguments which undermine the assumptions that this deal is predicated upon. In my view, the calculus of the cloud stays the same for the time being.

    Supporting Documents

    ibm_redhat_acquisition_transcript.pdf

    Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.


    Larry Ellison Sees Expansive Opportunity For Oracle's Revamped Cloud | killexams.com real questions and Pass4sure dumps

    By Aaron Ricadela

    Oracle Executive Chairman and CTO Larry Ellison had a message for analysts recently: Now that Oracle has upgraded the computers, networks, and architecture that underpin its cloud computing service, it’s going to get more aggressive on price to put pressure on competitors.

    “We’ve got a really firm infrastructure foundation under our most strategic product, which is Oracle Database,” Ellison told financial analysts at a late October meeting in San Francisco. “It’s a land rush now for cloud, and we have the opportunity to be very price aggressive.”

    Ellison used his presentation, which followed those of CEOs Mark Hurd and Safra Catz at the end of the company’s Oracle OpenWorld customer conference, to argue that network speed, computer security, and database performance upgrades in Oracle’s cloud software are setting the table for more customers to move databases in the coming year from their own data centers to online services. The performance improvements could let Oracle capture share from Amazon Web Services, which Ellison said isn’t as well suited to serving large, regulated companies with data security concerns in industries including banking and telecommunications.

    “They haven’t changed their fundamental architecture, and they’re going to have to,” he said. “Everyone is going to have to.”

    Oracle designed a second-generation cloud infrastructure, available now for new customers, to meet the needs of the enterprise-scale Oracle Database users that are increasingly ready to move their workloads to online versions. The new architecture not only improves security and reliability, it increases computing speed, providing Oracle a cost advantage against AWS since cloud work is billed by the minute. “It’s found money for us,” Ellison said. “We can afford to be much more aggressive on pricing than they can.”

    The software giant also showed new Autonomous Database capabilities including the ability for businesses to isolate computing jobs from other customers contending for resources. The new infrastructure and database services may speed customers’ moving transaction processing databases and analytical data warehouses to the cloud, said Ellison.

    Oracle, the world’s largest supplier of database management software, had 42.3% of the $33.1 billion relational database market in 2017, according to market researcher IDC. Microsoft was second with 24.3% share followed by IBM with 12.7% and SAP with 6.8%. The cloud database opportunity alone could be vast, Oracle’s chairman said.

    Oracle will pursue all cloud workloads, Ellison said, while pointing to how much of “the world’s high-value data” is stored in Oracle Databases. “If we got the Oracle workloads in our cloud, how big would our cloud be?” Ellison said to analysts.

    The new generation of Oracle Cloud Infrastructure is designed around three goals: enhanced security and reliability; protecting customers’ investments in their Oracle databases and applications by making them portable to the cloud; and price and performance advantages compared with on-premises versions, according to Ellison. In one example of Oracle Cloud Infrastructure’s technical edge, Oracle is offering remote direct memory access (RDMA) so computers in a network can exchange data in memory faster without accessing each other’s operating systems. Oracle in its cloud service has also separated controlling computers that run Oracle code from machines running customers’ code, to strengthen security. “It’s expensive—we had to add computers,” Ellison said.

    During a separate Oracle OpenWorld presentation on cloud infrastructure, Oracle senior vice president Don Johnson said the company took a different technical approach than in other public clouds, designing its computing service for large, regulated companies with data security concerns.

    Cloud Infrastructure and Apps Complementary

    The so-called second-generation Oracle Cloud Infrastructure, which provides computing power, networking, and storage as online services, could also encourage businesses to move more of their Oracle applications to online software services in a challenge to SAP.

    Cloud applications can help drive Oracle Cloud Infrastructure demand, as companies develop capabilities running on Oracle Cloud Infrastructure that integrate with software-as-a-service applications in order to meet some unique customer need. “These are related businesses,” Ellison said. SAP claimed about 27% of the $27 billion enterprise resource planning software segment last year, compared with nearly 21% for Oracle, according to IDC.

    “We’re going to go from No. 2 behind SAP in applications to No. 1 in SaaS,” Ellison said. SAP is creating the opportunity for some customers to consider switching business applications suppliers through an upgrade to its S/4 Hana system that requires an SAP database, and an announced intention to end support of some previous versions of its ERP tools by 2025.

    “There’s a real opportunity,” Ellison said. “We’re moving SAP customers to the cloud—companies you’ve heard of.”

    Aaron Ricadela is an Oracle senior director of strategic communications.

    Forward-Looking Statements Disclaimer: Statements in this article relating to Oracle’s future plans, expectations, beliefs, intentions, and prospects are “forward-looking statements” and are subject to material risks and uncertainties. Many factors could affect Oracle’s current expectations and actual results, and could cause actual results to differ materially. A discussion of such factors and other risks that affect Oracle’s business is contained in Oracle’s Securities and Exchange Commission (SEC) filings, including Oracle’s most recent reports on Form 10-K and Form 10-Q under the heading “Risk Factors.” These filings are available on the SEC’s website or at http://www.oracle.com/investor. All information in this article is current as of October 25, 2018, and Oracle undertakes no duty to update any statement in light of new information or future events.


    AWS joins the Cloud Native Computing Foundation | killexams.com real questions and Pass4sure dumps

    Rumor has it that Amazon’s AWS cloud computing platform will soon launch its own Kubernetes-based container management service. Those rumors are getting a bit more concrete because AWS today joined the Cloud Native Computing Foundation (CNCF), the open source home of the Kubernetes project, as a top-level Platinum member. With this, all of the major public cloud providers, including Microsoft, Google and IBM, are now part of this Linux Foundation-based group, which aims to bring modern cloud management techniques to the masses.

    Amazon already hosts the vast majority of Kubernetes deployments, according to a recent survey, so it shouldn’t come as a surprise that Amazon is joining the foundation that, to a large degree, is steering this project. It’s worth noting, though, that AWS makes use of plenty of open source projects, and also regularly releases its own projects on GitHub. The company also has been a Linux Foundation member since 2013 and is a founding member of the Core Infrastructure Initiative. Unlike all of its main competitors, it isn’t a member of the Cloud Foundry foundation, though.

    As for the CNCF, Amazon has been contributing to containerd, the group’s container runtime. “AWS plans to take an active role in the cloud native community, contributing to Kubernetes and other cloud native technologies such as containerd, CNI, and linkerd,” the CNCF notes in today’s announcement. Adrian Cockcroft, the VP of Cloud Architecture Strategy at AWS, will join CNCF’s board.

    In his announcement, Cockcroft did not talk about what Amazon’s short-term plans for Kubernetes are, but given the wide-spread support for the platform — which is giving Google and Microsoft an opening in competing with AWS on this quickly expanding field — I would be surprised if we didn’t see increased direct support for Kubernetes on AWS (you can, of course, already use it on AWS, but only with the help of tools from third-party vendors).



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