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C2030-284 - Foundations of IBM Cloud Computing Architecture V4 - BrainDump Information

Vendor Name : IBM
Exam Code : C2030-284
Exam Name : Foundations of IBM Cloud Computing Architecture V4
Questions and Answers : 226 Q & A
Updated On : November 20, 2018
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C2030-284 exam Dumps Source : Foundations of IBM Cloud Computing Architecture V4

Test Code : C2030-284
Test Name : Foundations of IBM Cloud Computing Architecture V4
Vendor Name : IBM
Q&A : 226 Real Questions

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IBM Foundations of IBM Cloud

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

1.0 executive summary

Getting appropriate to the element, I’m skeptical that the red Hat (RHT) acquisition is going to be meaningful over the lengthy-term for IBM’s (IBM) company or share cost. I worry that crimson Hat can also finish up being IBM’s (extra precisely Ginni Rometty’s) “Compaq”, as in Hewlett-Packard’s (NYSE:HPE) questionable buy of that enterprise years in the past.

The argument that the “sum” of IBM + RedHat is more than the individual ingredients isn't principally mighty in my view. i am struggling to take note the exciting price proposition provided through the mixed groups after reading the transcript of the analyst conference name that adopted the announcement. certainly, the typical idea that the joint expertise stacks someway radically trade the “calculus of the cloud” simply doesn’t make feel to me. as a consequence, whereas some analysts have expressed challenge over the $34 billion cost tag, my focal point here is primarily on IBM’s know-how arguments and market opportunity arguments used to justify the purchase.

As a disclosure, I took place to eliminate my final position in IBM in October of this yr, as I began shedding shares a short time after I wrote IBM – A Turning or Sinking Ship in 2017. I additionally worked for IBM years ago within the programs administration division, long earlier than the notice “cloud” existed within the terminology of common information know-how.

in the sections that follow, any referenced fees are pulled from the in search of Alpha transcript of IBM and red Hat’s analyst conference call which adopted the acquisition announcement, unless otherwise noted. I’m additionally attaching the transcript to this document for convenience.

2.0 WHICH CLOUD IS IT

Ginni Rometty notes that “[IBM] can be the undisputed quantity [1] leader in hybrid-cloud….[with the acquisition of] crimson Hat, the area’s leading issuer of open-cloud solution[s] and the rising leader in the platform for hybrid-cloud and multi-cloud.” Ms. Rometty, and different members on the analyst name, use “hybrid-cloud” and “multi-cloud” terminology a bit of interchangeably; however, I suppose some definition is effective to add some precision to our evaluation.

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

Multi-cloud is using distinctive cloud computing and storage capabilities in a single heterogeneous architecture.

We notice that in a multi-cloud structure, the clouds can be public, inner most, or some aggregate of both.

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

A hybrid cloud uses a non-public cloud foundation combined with the strategic integration and use of public cloud features.

So, a hybrid-cloud uses at the least one inner most cloud, along with as a minimum one public cloud and thus is extraordinarily characterized by way of a personal-public architecture. we will then think of a hybrid-cloud as a kind of a multi-cloud.

Multi-Cloud and Hybrid-Cloud Diagram

source: Yves Sukhu

This difference is a little critical on the grounds that IBM stresses its capability to in particular catch a big share of the growing hybrid-cloud architecture market by way of red Hat’s applied sciences.

3.0 QUESTIONABLE ASSUMPTIONS

With our definitions in hand, let’s check why IBM is doing this deal. for my part, the causes expressed on the analyst call boil right down to an acquisition predicated upon three leading assumptions:

  • together, there's a unique synergy between IBM and purple Hat’s technology stacks such that the aggregate gives robust 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 (seemingly) power bigger deal sizes and be more ecocnomic for IBM, with many business shoppers just beginning to circulate the bulk of their functions to heterogeneous cloud architectures.
  • The hybrid-cloud market goes to be value $1 trillion.
  • obviously, any flaws in these assumptions would weaken the premise for the deal itself. Let’s check every.

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

    Ginni Rometty presents investors right here client requirement as a groundwork for the marriage with pink Hat:

    “…The no 1 aspect [customers are] asserting to us is, howdy, we – these other clouds, they’re proprietary. We want an open answer [with] no lock-in. So move it throughout numerous cloud environments and not using a lock-in, [that’s] what both of us do collectively…and then they say, it has acquired to handle facts safety in a multi-cloud ambiance and then provide us a way to manage a multi-cloud environment.”

    There are a number of things to unpack here. Ms. Rometty suggests that “different” clouds are proprietary and there's a customer requirement for “an open answer”. I don’t precisely take note what she’s getting at right here. She implies within the quote that consumers get “locked in” with (certain) cloud environments; but, as an alternative, these customers want to be capable of move their functions quite simply from cloud to cloud. i'm scratching my head as a result of what Ms. Rometty’s “clients” are calling lock-in appears to be concerning their software structure, and never the cloud environment they're running on. A poorly designed cloud software might be challenging to circulation no count number what cloud it's operating on. The communicate is additionally genuine: a neatly-designed cloud software should be easy(ier) to flow from one cloud to one more. I imagine many readers are usual with the theory and know-how of containers, comparable to Docker. For readers that may well be unfamiliar with the term, I offer an easy if just a little imprecise rationalization: containers give a means to kit all of the “components” that an software should run:

    Illustration of Container concept

    supply: Docker/Datamation

    As we see within the illustration above, a container can “contain” whatever thing an application needs to operate. In slightly of an over-simplification, if we are looking to flow a containerized-software from one cloud to yet another, we simply “lift” the container up from its latest cloud and drop the container on the brand new cloud. Readers who can also not be frequent with Docker and its container technology could be interested to notice that it all started as, and is, an open-supply application mission; the company additionally raised capital in late 2017 at a $1+ billion valuation.

    So, expanding on the utility of containers:

    “historically, applications or workloads generally had to be rebuilt earlier than they could be migrated to an extra ambiance. The solution to here's container expertise. given that containers are remoted from neighboring containers and consist of every little thing they should run the application, you could easily move them to yet another [cloud] atmosphere with out compatibility complications.”

    source: Kumina

    As this Datamation article notes, “it became…the…users [of cloud services] who demanded that this technology exist inside public clouds that drove the [container] innovations that now exist.” In other phrases, users wanted an easier option to kit and circulation their purposes between clouds; and that in flip spurred the general public cloud suppliers (AWS, Azure, Google, IBM, and many others.) to give container deployment features and features.

    One final point to make about containers is that purposes may consist of a number of containers, during which case container orchestration utility is used to automate and simplify the management of all these containers. Kubernetes, a further open-source assignment in the beginning started at Google, is likely one of the established orchestration programs (with Docker Swarm as an instance of a different).

    Coming returned to Ms. Rometty’s point that purchasers don’t are looking to be “locked in” and as an alternative are looking to be in a position to move purposes throughout distinctive cloud environments, they (customers) can certainly do that today if they design and deploy their functions as it should be, with containers as an example of 1 technology that can also be fairly constructive. She, in reality, makes this very element mentioning “…[We] had been building and we have been very focused on hybrid and multi-cloud…in accordance with open technologies. So we’ve built on containers, Kubernetes…[and] multi-cloud supervisor became just introduced last week…” however, let’s be clear: the other important cloud carrier suppliers (e.g. Amazon, Microsoft, etc.) also offer container and container orchestration features. as a result, the IBM Cloud isn't only differentiated on this factor; yet, with the purple Hat acquisition, IBM does acquire crimson Hat OpenShift which presents cost-brought performance constructed round Docker and Kubernetes. while there became no certain dialogue on the analyst call, perhaps IBM believes that its existing container management and cloud management functions might be augmented in such a means by means of OpenShift as to leapfrog the competitors when the use of the “married” applied sciences for multi-cloud environments. but, if that’s real, why no longer peculiarly speak concerning the capabilities that the mixed businesses will have that could be advanced to others?

    Frankly, it seems to me that IBM’s latest cloud capabilities added to OpenShift are not going to be a massive “online game changer”. first of all, any integration between IBM’s cloud technology stack and pink Hat’s will make an effort; time which opponents will actually use to their potential to make sure they don't seem to be left at the back of. second, I’ve already referred to that OpenShift is in keeping with Docker and Kubernetes which means purple Hat’s value-add is built around the equal core used by many others; however, the competitors has and will continue to strengthen similar value-delivered offerings as well. Third, if there was some “killer” set of cloud functionalities that the mixed stacks would generate, I’d like to suppose the corporations would have made that clear; but they haven't (at least now not yet). Fourth, there's nothing that “ties” OpenShift to the IBM Cloud; trust that crimson Hat’s own OpenShift deployment “offerings” web page – which I captured presently after the deal announcement – in fact highlights AWS as a deployment platform:

    crimson Hat OpenShift Deployment Tiers

    source: crimson Hat

    Now, pink Hat also presents OpenStack, in accordance with an additional set of open-source applied sciences, which can also be used by using organizations to build out their personal private clouds and has synergy with Ansible, crimson Hat’s language for DevOps. OpenStack hence supports IBM’s initiatives around hybrid-cloud deployments. however, as with OpenShift, I’m not fully satisfied that inserting this solution under an IBM umbrella goes to lead to a particularly differentiated offering, nor to a unexpected acceleration of inner most cloud adoption amongst commercial enterprise shoppers. First off, IBM already had its personal answer stack during this area, IBM Cloud inner most. seeing that IBM expressed such bullish sentiment concerning the hybrid-cloud market on the analyst call, I’m really a bit shocked this specific answer providing changed into now not mentioned all through the name. Assuming the hybrid-cloud enviornment is as “sizzling” as IBM suggests, one might are expecting that IBM inner most Cloud has been promoting neatly; why no longer name consideration to the technology then? here's perhaps a subtle point and could be an improper extrapolation on my part, but it surely leads me to wonder if the hybrid-cloud market is as mighty as IBM suggests it is, and may be. additionally because the prior to now linked article notes, IBM isn't alone with an providing right here, nor were they “first” to market with one. Microsoft added Azure Stack over a year before IBM brought its competing solution to market. IBM might argue that Azure Stack, for instance, is proprietary whereas their open-source platform gives clients all of the freedom and merits that open-supply solutions supply. It’s a worthwhile argument, and it may possibly greater strongly guide Ms. Rometty’s comment that shoppers don’t wish to be locked-in. after all, with an open-source-primarily based private cloud platform, a client can regulate and extend it as they want, which absolutely isn't possible to the identical extent with a closed solution. it could had been helpful if IBM provided some facts points to be aware if a style towards open-supply exists inside the hybrid-cloud market, and specially for private-cloud deployments. in the absence of details, i am left a little skeptical that pink Hat OpenStack is going to materially exchange the “electricity” of IBM’s hybrid (inner most/public) cloud offering.

    If we tie all of this again to Ms. Rometty’s quote at first of the section, it looks to make stronger that customer feedback around “an open [cloud] answer with no lock-in” seem to be slightly invalid when due to the fact that the technologies (e.g. containers, orchestration) that have already advanced to deliver cloud clients with the application portability that they need. The remark has improved validity when one considers the architectural chances of a non-public cloud within a hybrid-cloud ambiance; however, as I argue above, there looks to be a scarcity of records which might indicate customers lean toward non-proprietary (e.g. open-source-based) deepest cloud deployments.

    To summarize, I don’t (at the moment) see anything basically entertaining that emerges through a mixture of the two companies’ cloud stacks. To be reasonable, the organizations want time to increase tightly integrated solutions, and IBM is yet to follow the energy of its construction firm against crimson Hat’s applied sciences. but, if I’m appropriate that “there is not lots to look here” when it comes to the joint stacks, this perception would, of path, directly undermine Ms. Rometty’s suggestion that both groups might be a transparent chief, especially in hybrid-cloud options.

    three.2 second ASSUMPTION: purchasers are only GETTING all started

    Ms. Rometty mentions, more than once, that we are getting into a 2d section of cloud adoption (“chapter 2” as she calls it). within the first phase, shoppers moved their “easiest” workloads to the cloud with a cost-mark downs center of attention. These workloads represented the everyday Pareto-rule 20% of consumer purposes; and thus, eighty% of applications stay to be transitioned to the cloud. Ms. Rometty states:

    “[Customers have] received to move [these remaining 80% of applications]. They both need to rewrite, refactor, come to a decision what goes the place, comfy the statistics. These are inhibitors that cease them from going [to the cloud]. So here is handiest going to be completed this move to the 80%, in case you can movement information and functions throughout numerous cloud[s], make that portable…”

    She continues…

    “however here's an inflection factor, and if [customers are] going to get past that and circulate the different eighty% which is set all their procedures and their information they want what we’re going to present together, this mighty atmosphere. And so this eighty% is…about…unlocking enterprise value…the average clients has a thousand software[s] and the common client already has 5…that we see some as many as many as sixteen clouds.”

    the primary remark, “[customers have] received to movement…”, is price debating. logic tells us that now not all applications are necessarily a pretty good healthy for a cloud deployment for any number of explanations: required dependencies are not effectively replicated in a cloud environment, safety considerations, lack of cost-savings, and many others. So, shoppers certainly would not have to movement the bulk of their functions to a cloud structure. besides the fact that children, most likely Ms. Rometty is taking part in a little together with her phrases, and is announcing with somewhat of “dressing” that the style toward cloud adoption will proceed…which it certainly will.

    however, I believe there's room to challenge what she says within the following few statements. She explains that “[customers] either have to rewrite, refactor, decide what goes the place…” indeed, IBM and different technology providers will, as they have already got, be afforded with opportunities to help purchasers migrate definite applications to cloud environments. That’s respectable news for IBM’s very enormous carrier enterprise, and there's intent to consider the features group will advantage a little from the pink Hat purchase. These alternatives just about actually develop in scope and income/profit expertise to the extent that these purposes are migrated to incredibly allotted fashions operating on (perhaps) heterogeneous cloud structures (e.g. multi-cloud). So, I suppose Jim Kavanaugh, IBM’s CFO, correctly pointed out that “[distributed cloud solutions] quickens our combine shift to greater cost...and is accretive to our gross income margin…”

    however, there is a counter-argument to accept as true with right here. in preference to rewriting/refactoring present legacy purposes, purchasers may also as an alternative decide on “off-the-shelf” options (SaaS or otherwise) which may additionally show to be more low cost, contemporary, and simpler to maintain. as an example, Salesforce.com (CRM) and Workday (WDAY) actually didn’t obtain their market penetration as a result of customers opted to redesign any homegrown CRM and HR applications respectively. lamentably, IBM doesn’t focus on the COTS strategy and its capabilities affect on their projections for starting to be their cloud related revenues.

    moving to IBM’s claim that multi-cloud environments will be more universal in the future, as per Ms. Rometty’s remark that “the ordinary client already has 5 [clouds]…”, there is a few statistics to backup what the business is asserting here: a TechRepublic survey from 2017, as an instance, referred to that most of companies surveyed had already adopted a hybrid-cloud architecture. but, we recognize that IT tends to circulation in cycles. believe about what came about with the client-server computing paradigm where “server sprawl” at last gave option to server explanation and a push for homogeneity among programs. Is it no longer viable that we may additionally see some thing equivalent with cloud, where consumers “wake up” someday and ask themselves why they have 5 clouds when they should be would becould very well be able to operate with 1? accept as true with one of the main requirements for the Pentagon’s present $10 billion JEDI cloud task: they are (for the moment) insistent that the challenge award and associated computing workloads will go/run on a single cloud. As readers can also comprehend, IBM is without doubt one of the bidders on the venture and formalized their objection to the govt Accountability workplace (GAO) for the requirement of a homogenous cloud atmosphere. Assuming the Pentagon receives its way 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 “excessive” illustration from IBM’s quote)?

    The overarching theme right here is that Ms. Rometty’s place that the “last” eighty% of legacy customer applications are only waiting to be moved into a multi-cloud ambiance has vulnerable features. however it had been strong, I’m no longer bound IBM crucial to spend $34 billion on red Hat to trap these alternatives. I already argued in the outdated section that IBM had present capabilities in the equal cloud know-how areas the place purple Hat operates. If we think about Ms. Rometty’s comment about “rewriting/refactoring”, what does purple Hat offer here that IBM does not have already got? here's work that sits squarely within the domain of IBM’s services neighborhood; a group that may “plug in” red Hat’s know-how, or any other cloud expertise, where it makes sense in line with consumer requirements.

    but, the pink Hat acquisition aside, if it seems that multi-cloud architectures ultimately “in the reduction of” to more convenient, single cloud environments which supply enough robustness and reliability to fulfill most client necessities, then this “cloud rationalization” could have a dramatic impact on IBM’s true-line and bottom-line growth forecasts given that the business is tying each metrics especially to its opportunity with “excessive-value” multi-cloud options.

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

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

    “And to guide in the 2nd chapter, here is going to be about hybrid-cloud. In hybrid-cloud is an rising $1 trillion market…I suggest what we did was seem to be and we see a scale of a $1 trillion market…We referred to to ourselves and constantly kept asserting: What do we do stronger to address the needs of our valued clientele? How do we speed up our ability to go after that? And realizing and there’s in fact an important element, knowing that Linux is the fastest transforming into platform obtainable. And this just this year, it grew to be the #1 platform both on-prem and within the cloud.”

    throughout the analyst call, there was no mention of exactly when the market for hybrid cloud is expected to reach $1 trillion in cost, nor the CAGR for this certain phase of the standard cloud market. I struggled to find first rate information in assist of IBM’s projection here, besides the fact that children Market analysis Media presents a forecast of $1 trillion for the total cloud market through 2024. curiously, the Market research Media file synopsis highlights the speedy turning out to be/excessive priority technology segments inside the cloud market, but multi-cloud and hybrid-cloud aren't outlined in that context. this text, which become referenced in section three.1, charges IBM in 2017 as saying “they expect corporations to spend greater than $50 billion a 12 months international beginning [in 2017] to improve inner most clouds, with the growth fee hitting 15 to 20 % a year through 2020.” the use of these figures as a proxy for the average hybrid-cloud market, it would without doubt take reasonably some time to reach $1 trillion in complete price even at the excessive end of the growth latitude.

    One element technology leaders seem to be mainly good at is developing with very big numbers when describing their complete addressable market (TAM). Admittedly, I’m not bound if IBM’s estimate is simple here or no longer due to the fact…who really is aware of at the moment how large the hybrid-cloud market could develop into? In guide of IBM’s forecast, the prior to now outlined article notes that “past [in 2017], IDC analysts launched a survey that indicated that basically 80 percent of massive organizations with 1,000 or more personnel have already got a hybrid cloud method in region. in addition, 51.four % are the use of both public and private cloud infrastructures, and 29.2 percent expect to do the same inside the next 12 months.” These metrics are valuable to help IBM’s argument, but they may even be interpreted to indicate that almost all big purchasers have already got a hybrid-cloud in vicinity, and for this reason new hybrid-cloud deployments might definitely lessen relocating ahead. additional, if we take into account the dialogue in part three.2 around purchasers picking COTS/SaaS purposes, as well because the chance that single cloud architectures may sooner or later establish themselves because the dominant mannequin, then it’s conceivable that a $1 trillion hybrid-cloud market can also not materialize.

    four.0 CONCLUSION

    “Whoa” changed into supposedly Steve Ballmer’s (former Microsoft CEO) response upon listening to in regards to the IBM-purple Hat deal. most likely that single observe surest describes the latest sentiment of many others.

    The main thrust of what I’ve presented in this article is that i am nonetheless struggling to be aware what key technologies IBM receives with crimson Hat that they didn’t have already got, and why they felt they essential to spend 1/three of their market cap on an organization that is simply generating a few hundred million in cloud answer earnings (despite the fact their increase price is excessive). nevertheless, the “math” doesn’t add up for me, although most likely it will in time as IBM and crimson Hat better explain their pleasing cost proposition.

    Readers may additionally rightfully point out that I’ve omitted the prospects for red Hat Linux and their middleware stack below IBM in my evaluation. In regard to the latter, I feel IBM’s possession of crimson Hat’s middleware stack is likely to create some confusion, as a minimum in the brief term. IBM and pink Hat will definitely need to work out the way to position WebSphere versus JBoss. And as other authors have cautioned, crimson Hat business Linux (RHEL) could at last supplant AIX as IBM’s de facto UNIX distribution. The linked migration work would possibly force a good quantity of technology and support functions. Ms. Rometty mentioned in a single of the prior to now outlined charges that Linux is the quickest turning out to be working gadget in the cloud and on-premise. but, observe that she didn't say that RHEL is the fastest growing to be Linux distribution. To that conclusion, there is a few information suggesting that Ubuntu is becoming quicker within the commercial enterprise Linux segment. without greater statistics from IBM and crimson Hat, it’s in reality quite difficult to quantify the impact of crimson Hat’s Linux and JBoss product sets to IBM over the long-term.

    As outlined, I expect that IBM and red Hat will provide more advantageous readability on the strategic cost-add of the two corporations as we circulation into 2019, and how they intend to mix their stacks to stronger compete against the likes of AWS, Microsoft, and Google. i hope they do; because evidently investors will send the inventory decrease (than it already is) if most become satisfied the sum of the businesses lacks incremental price. Yet, at the same time as IBM/pink Hat deliver additional particulars to the market, as I’ve outlined herein there are a number of counter-arguments which undermine the assumptions that this deal is based upon. for my part, the calculus of the cloud stays the equal for the time being.

    supporting files

    ibm_redhat_acquisition_transcript.pdf

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

    I wrote this article myself, and it expresses my own opinions. i'm not receiving compensation for it (other than from in quest of Alpha). I have no company relationship with any business whose inventory is mentioned listed here.


    IBM's Bob Lord: pink Hat Acquisition Makes IBM the suitable Hybrid Cloud company | killexams.com Real Questions and Pass4sure dumps

    photograph credit: Shutterstock

    November 13, 2018

    up to date 14h ago

    by using Chloe Aiello

    circulate over, Watson.

    Hybrid cloud computing is now the identify of the online game at IBM, thanks to the business's fresh acquisition of red Hat.

    "we're going to be the business it's proposing enterprise-ready hybrid cloud options and truly create the basis of the infrastructure of the longer term," IBM's ($IBM) chief digital officer Bob Lord advised Cheddar on Tuesday.

    IBM's red Hat ($RHT) acquisition may be a online game-changer for the tips technology tremendous ー and it more desirable be, at a $34 billion fee tag. The deal, which is IBM's greatest ever and the third greatest deal in tech, is expected to close at the conclusion of 2019. it's been below one month on account that IBM announced the acquisition, but executives like Lord are already suggesting it could be modern.

    "With pink Hat, we now turn into the number one largest provider of hybrid cloud solutions on this planet," Lord said, "which is in reality vital for all our commercial enterprise customers." He pointed out the deal also capability that IBM is doubling down on open supply and "committing to the developer neighborhood that these tools are whatever thing that they will be capable of use and have impact on the area."

    "Hybrid cloud" refers to a computing atmosphere made out of a mixture of public and private cloud infrastructure ー and extra comfortable on-premise infrastructure, like facts centers. purple Hat is a leading distributor of open-supply expertise for business, and is principally conventional for its Linux working system. other than giving IBM a major boost in open-source technology and hybrid cloud infrastructure, Lord observed the acquisition will aid develop profits and earnings.

    "The red Hat Acquisition is accretive within the first 12 months, and it is clearly going to assist our increase ... as a result of as I noted we are going to be ... concentrated on our enterprise valued clientele and giving our commercial enterprise shoppers a complete answer on a way to migrate to the cloud to get the competitive potential," Lord referred to.

    some of those aforementioned clients consist of important banks and health-care trade players who nonetheless grasp to outdated on-premise computing solutions, Lord stated. IBM's newest obsession with hybrid cloud does not imply or not it's any less concentrated on its different initiatives, including its greatly-touted artificial intelligence, Watson. but Lord emphasized the computing infrastructure is peculiarly essential because "Watson and other technology options will plug right into the exact of that."

    And IBM's ambitions are nothing to disregard. Taking the right spot in hybrid computing may not be convenient ー IBM can be up against some stiff competitors, including Microsoft ($MSFT), Amazon ($AMZN) and Alphabet's ($GOOGL) Google.

    For full interview click on here.


    What Does IBM’s Acquisition of crimson Hat mean for the Hybrid Cloud? | killexams.com Real Questions and Pass4sure dumps

    There’s little doubt that almost all of corporations have been moving to the hybrid cloud. The hybrid cloud provides all of the merits of on-premise computing with the flexibleness and cost reductions of the cloud. corporations can leverage their investments in their latest infrastructure and purposes to take capabilities of the cloud where it makes experience for brand spanking new functions and add substances on demand.

    Gartner research estimates that 72% of all corporations have a hybrid cloud strategy. It’s no secret that thus far the cloud market has been dominated by way of Amazon AWS and Microsoft Azure. IBM has been a distant quantity four within the cloud market behind Amazon AWS, Microsoft Azure and Google Cloud. IBM is asking to alternate that and to adapt from its former mainframe-centric orientation to a correct tier hybrid cloud company. To make that transition IBM has these days introduced that it might be purchasing purple Hat for $34 billion which equates to $one hundred ninety per share. IBM has pointed out that it expects the hybrid market to accurate $1 trillion.

    IBM and pink Hat have had a partnership for the past twenty years and each have giant investments in open supply. This new merger will permit them to create a new hybrid cloud platform using IBM Cloud inner most and crimson Hat OpenShift because the groundwork. This new platform is geared to assist modern container-based mostly Kubernetes software development and it is supposed to enable developers to set up new purposes faster and to take abilities of IBM’s cloud-primarily based functions reminiscent of synthetic Intelligence (AI) and information superhighway of issues (IoT) all with consistent cloud administration. The corporations will additionally give joint consulting services through IBM garage and purple Hat Consulting.

    How does IBM’s Acquisition of red Hat assist IBM within the Hybrid Cloud?

    here is a big trade for IBM who's trying to come from behind within the rapidly evolving cloud marketplace. It’s slightly like updating the ancient shield with the brand new cool hip stuff. within the bulletins, the business claimed this may make them the appropriate hybrid cloud company and it definitely will increase their place for the long run.

    youngsters, seeing that Microsoft’s significant lead in the cloud market and the amazing hybrid cloud focal point they have utilized to their core business items like windows Server 2019 and SQL Server 2019, it might look that IBM’s circulate eventually places them in a much better position to compete – the place they could present a complete aggressive hybrid cloud stack. Arvind Krishna, Senior vp, IBM Hybrid Cloud brought up within the announcement, “Our typical vision for hybrid cloud the usage of container architectures allows thousands and thousands of businesses – from banks to airlines, to executive businesses – to entry main expertise from each agencies with no need to make a choice from public and private cloud.”

    What does this merger suggest for purple Hat?

    For crimson Hat, this won’t imply any massive alterations. crimson Hat will retain its center of attention on open supply and the red Hat enterprise Linux (RHEL) distribution. They introduced that they intend to proceed to operate as an independent unit within IBM and should retain their management, amenities and way of life. despite the fact, the IBM merger will enable them to leverage the IBM client base and extend their competencies market. Paul Cormier, president of items and applied sciences, red Hat stated “Our purchasers are seeing open hybrid cloud because the most effective method to carry public cloud into their IT infrastructure, and because of our dimension we are able to’t admire the expertise of that demand. IBM helps us deliver that approach to 170 international locations and accelerates our vision into the market.”

    because the combat for the hybrid cloud continues to warmth up, it’s clear that for IBM leveraging pink Hat’s open OS and building technologies will strongly place them to stronger compete and to keep from falling at the back of in the all of a sudden evolving hybrid cloud market. The acquisition will enable them to deliver the entire hybrid cloud stack from bare steel as much as the IBM cloud together with a modern application construction framework featuring parity with what Microsoft offers with windows Server 2019 via Microsoft Azure’s cloud services. The red Hat acquisition is anticipated to be accomplished in the latter half of 2019.




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    OpenStack Foundation Showcases New Features, Roadmaps and Use Cases of Open Infrastructure Pilot Projects at OpenStack Summit Berlin | killexams.com real questions and Pass4sure dumps

    The OpenStack Foundation (OSF) launched four pilot projects in the last 12 months, emphasizing its expanded mission to help users integrate and operate open infrastructure. The communities driving these pilot projects—Airship, Kata Containers, StarlingX and Zuul—announced substantial progress on new features, technology roadmaps and use cases, and they are accelerating that progress via collaboration with the broader open infrastructure community at the Summit this week, driving their projects forward.

    Airship Community Delivers Release Candidate for Declarative Infrastructure Management, 5G Demo at Berlin Summit

    Airship makes it possible for users to deploy and manage containers, virtual machines and bare metal infrastructure environments across multiple sites in a repeatable and declarative fashion. The value of Airship for 5G and edge computing is that users can deploy and easily manage the same environment across hundreds or thousands of smaller sites. There also is value for upgrades and lifecycle management in large datacenters. Airship is a user-driven project being developed in production by AT&T and SK Telecom for 5G to NFV, VDI and big data processing.

    During the OpenStack Summit Berlin keynote today, AT&T is demonstrating how its 5G commercial deployment is “born in the cloud,” powered by OpenStack while deployed and managed by Airship.

    The Airship community will also feature its Release Candidate in Berlin, ahead of the 1.0 version expected early next year. The community has been actively developing the release candidate since the project was introduced as an OSF pilot project in May and has achieved security at scale, scalable operations and reliable upgrades, as well nightly CI/CD validation of integrations and example deployments. The release candidate is ready to try, and the community has developed “Airship in a Bottle,” an easy way to get started. Features on the roadmap for the 1.0 release include thorough documentation and OpenStack Ironic bare metal cloud integration.

    ***Learn more about the software and how to get involved in the community at http://www.airshipit.org .***

    Kata Containers Advances Secure Container Runtime

    Kata Containers is an open source project and community working to build a standard implementation of lightweight VMs that feel and perform like containers, but provide the workload isolation and security advantages of VMs. Since its launch in December 2017, Kata Containers has scaled to include support for major architectures, include AMD64, ARM and IBM p-series.

    After delivering its 1.0 release in May, the community is working on 1.4, which will offer better logging, ipvlan/macvlan support through TC mirroring, and NEMU hypervisor support. The most recent 1.3.0 release was delivered in September. Notable achievements include containers getting entropy via virtio-rng, which creates a higher quality randomness for random number generation. Additionally, Kata Agent now has optional seccomp support, which is the first step to enabling seccomp in Kata Containers in the future, an important capability for end users.

    The first Architecture Committee elections were held in September, and the community welcomed Eric Ernst (Intel) and Jon Olson (Google) who join existing members Samuel Ortiz (Intel), Xu Wang (Hyper), and Wei Zhang (Huawei).

    The community recently hosted a meetup in China designed for large cloud providers including Alibaba, Baidu, Tencent and more to share adoption plans and feedback for the Kata Containers roadmap.

    The Kata Containers community continues to work closely with the OCI and Kubernetes communities to ensure compatibility, and regularly tests Kata Containers across Azure, GCP and OpenStack public cloud environments.

    ***To download the software or get involved in the community, visit katacontainers.io .***

    StarlingX Edge Cloud Celebrates First Release, Announces Technical Steering Committee Members

    The StarlingX community delivered its first release of the open source edge platform for telecom and industrial IoT use cases on October 24. StarlingX leverages components of Ceph, OpenStack and Kubernetes and complements them with new services including configuration and fault management with a focus on key requirements such as high availability (HA), quality of service (QoS), performance and ultra-low latency.

    The release reflects diversity in the StarlingX community, with 1,329 commits from 84 contributors, including developers representing 99Cloud, China UnionPay, Fujitsu, Intel, NEC, SUSE and Wind River, among others.

    The StarlingX Technical Steering Committee (TSC) was established with the following members: Curtis Collicutt (INTERdynamix), Ana Cunha (Ericsson), Shuquan Huang (99cloud), Ian Jolliffe (Wind River), Miguel Lavalle (Huawei), Brent Rowsell (Wind River), Dean Troyer (Intel) and Saul Wold (Intel). Going forward, the community expects to hold bi-annual elections for the TSC, starting 1H 2019.

    ***Download the first release of StarlingX at git.starlingx.io , and get involved in the community at starlingx.io .***

    Zuul CI/CD users BMW and Leboncoin share case studies at scale

    Zuul is an open source CI/CD platform designed to tackle the complexity of open source integration by gating new code against multiple projects and systems before landing a single patch. Zuul currently supports Gerrit and GitHub and leverages the Ansible ecosystem for third-party modules. Zuul is a new top-level pilot project at the Foundation but has been in development for six years and proven at scale supporting the OpenStack project.

    At the OpenStack Summit Berlin today, a BMW keynote described how the company is using Zuul for big software projects that need high CI/CD performance. Also, Leboncoin, the largest French ecommerce destination, is delivering their use case for Zuul at scale in a session today.

    Since the Zuul community launched version 3.0 in March 2018, they have been rapidly adding new features and integrations, including stronger integration with Github, support for Ansible 2.5, better usability, a containerized quick-start and more efficient build pipelines. Nodepool drivers for EC2, Kubernetes and OpenShift and are in review and support for Azure, GCP, Gitlab and Pagure are in the works.

    ***To learn more about the software, read case studies or get involved in the community, visit zuul-ci.org .***

    Supporting Quotes

    Ryan Van Wyk, AVP Network Cloud Engineering, AT&T

    “Airship is the foundation of AT&T’s Network Cloud, which is powering our 5G core platform supporting a 5G launch in 12 cities this year. We collaborated to create the Airship project to evolve how we deliver our cloud platform at AT&T, as well as manage the lifecycle of the resulting cloud. Airship enables us to deploy and operate OpenStack clouds with the scale, speed, resiliency, flexibility and operational predictability demanded of our Network Cloud platform.”

    Dr. Kang-Won Lee, SVP Software R&D Center, SK Telecom

    “Airship is becoming the foundation of SKT's cloud infrastructure deployment effort, including private cloud service, VDI cloud service, big data and analytics cloud platform, and network virtualization. It enables us to deliver both OpenStack clouds and Kubernetes-based container infrastructure. SKT strongly supports the community's efforts to evolve Airship as a valuable open infrastructure project in OpenStack ecosystem.”

    Dr. Dan Chen, senior director of Edge Computing, Intelligent Network Center, China Unicom

    “We have run a full validation on StarlingX over the past six months. StarlingX improved efficiency on high-availability in both VMs and at the controller level. It also optimized the required number of nodes to support edge-deployment scenarios. Features were added in fault management, rolling upgrading, inventory discovery and VNF acceleration. StarlingX provided capability in VM-applications/VNFs hosting, and it also can be extended to support containerized applications in the future. It is one of the top strategies of China Unicom to build an ‘open’ edge platform. As an ‘Open Infra’ technology for edge computing, StarlingX will play an essential role in China Unicom’s edge strategy.”

    Mark Collier, COO, the OSF

    “As the governance structure of the OSF is evolving to meet the needs of our open infrastructure community, these four pilot projects are already demonstrating impressive progress. What they’ve accomplished in a short period of time is a proof point that focusing on open infrastructure is the right model, putting users at the center of everything we do.”

    About OpenStack Summit Berlin

    Attendees from more than 50 countries are at OpenStack Summit Berlin this week, interacting with speakers from industry-leading companies and discussing innovation in open infrastructure including edge computing, CI/CD, artificial intelligence (AI), network functions virtualization (NFV) and container infrastructure, as well as public, private and hybrid cloud strategies. Browse the OpenStack Summit agenda featuring sessions from more than 35 open source projects.

    Analysts and media can contact jennifer@cathey.co for registration information.

    About the OpenStack Foundation (OSF)

    The OpenStack Foundation (OSF) supports the development and adoption of open infrastructure globally, across a community of 100,000 individuals in 187 countries, by hosting open source projects and communities of practice, including datacenter cloud, edge computing, NFV, CI/CD and container infrastructure.

    View source version on businesswire.com: https://www.businesswire.com/news/home/20181114005082/en/

    SOURCE: OpenStack Foundation"> <Property FormalName="PrimaryTwitterHandle" Value="@openstack

    Robert CatheyCathey Communications for the OpenStack Foundatione robert@cathey.co Lauren SellOpenStack Foundatione lauren@openstack.org

    Copyright Business Wire 2018


    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.


    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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