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Test denomination : Foundations of IBM Cloud Computing Architecture V3
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IBM Foundations of IBM Cloud

IBM/pink Hat - The Calculus Of The Cloud Stays The same | killexams.com actual 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 furthermore finally halt up being IBM’s (greater precisely Ginni Rometty’s) “Compaq”, as in Hewlett-Packard’s (NYSE:HPE) questionable buy of that commerce years ago.

The dispute that the “sum” of IBM + RedHat is greater than the particular person parts isn't notably mighty in my opinion. i am struggling to retain in intelligence the intellectual 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 get sustain to me. thus, whereas some analysts occupy 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 warrant 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 furthermore worked for IBM years in the past inside the methods administration division, long before the word “cloud” existed in the terminology of incurious 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, consume “hybrid-cloud” and “multi-cloud” terminology slightly interchangeably; but, I consider some definition is profitable to add some precision to their evaluation.

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

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

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

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

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

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

Multi-Cloud and Hybrid-Cloud Diagram

source: Yves Sukhu

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

3.0 QUESTIONABLE ASSUMPTIONS

With their definitions in hand, let’s check why IBM is doing this deal. individually, the reasons expressed on the analyst denomination seethe All the course 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 admixture 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 climb to lumber 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, they – these other clouds, they’re proprietary. They covet an open solution [with] no lock-in. So lumber it across diverse cloud environments with out a lock-in, [that’s] what the two of us achieve 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 buy into account what she’s getting at here. She implies within the quote that valued clientele come by “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 lumber no recollect 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 assume 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 tender an facile if slightly imprecise rationalization: containers supply a course to package the entire “materials” that an application should run:

    Illustration of Container concept

    supply: Docker/Datamation

    As they view in the illustration above, a container can “include” whatever an software must operate. In relatively of an over-simplification, if they are looking to lumber a containerized-application from one cloud to one other, they simply “raise” the container up from its present cloud and drop the container on the brand recent cloud. Readers who may additionally now not be familiar with Docker and its container expertise may occupy an interest to notice that it All started as, and is, an open-supply software venture; the company furthermore 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 own to here is container expertise. due to the fact containers are isolated from neighboring containers and comprehend every Little thing they should race 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 current their functions between clouds; and that in flip spurred the universal public cloud providers (AWS, Azure, Google, IBM, etc.) to provide container deployment elements and functions.

    One closing factor to get about containers is that functions may encompass a yoke 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 unvarying orchestration methods (with Docker Swarm for case of a different).

    Coming back to Ms. Rometty’s point that purchasers don’t are looking to be “locked in” and in its plot wish to be in a position to current 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 furthermore be quite valuable. She, truly, makes this very point stating “…[We] were constructing and they occupy 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.) furthermore tender 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 consume 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 occupy 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 great “game changer”. first off, any integration between IBM’s cloud expertise stack and crimson Hat’s will get the effort; time which opponents will actually consume to their skills to get certain they don't look to be left behind. second, I’ve already illustrious that OpenShift is in accordance with Docker and Kubernetes which potential pink Hat’s cost-add is built across the identical core used by course of many others; however, the competition has and should continue to ameliorate 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 occupy made that clear; however they occupy not (as a minimum no longer yet). Fourth, there is nothing that “ties” OpenShift to the IBM Cloud; accept as unaffected 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 furthermore 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 understanding 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 inescapable 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 unseemly extrapolation on my part, nevertheless it leads me to question yourself if the hybrid-cloud market is as sturdy as IBM suggests it's, and will be. furthermore 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 own to market. IBM may bicker that Azure Stack, for example, is proprietary whereas their open-supply platform offers customers All the license 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 workable to the same extent with a closed answer. it will occupy been valuable if IBM provided some facts aspects to occupy in intelligence 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 they 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” look slightly invalid when when you consider that the technologies (e.g. containers, orchestration) which occupy already advanced to provide cloud clients with the utility portability that they want. The remark has better validity when one considers the architectural possibilities of a personal cloud within a hybrid-cloud environment; however, as I bicker above, there appears to be an absence of statistics which might intimate valued clientele rawboned toward non-proprietary (e.g. open-source-primarily based) deepest cloud deployments.

    To summarize, I don’t (at the moment) view anything else definitely wonderful that emerges through a admixture of both groups’ cloud stacks. To be fair, the organizations necessity time to ameliorate tightly built-in solutions, and IBM is yet to succeed the dash of its edifice organization against pink Hat’s technologies. but, if I’m remedy that “there isn't an Awful lot to leer 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 piece 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 lumber [these remaining 80% of applications]. They both ought to rewrite, refactor, get a conclusion what goes the place, secure the facts. These are inhibitors that quit 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], get that moveable…”

    She continues…

    “but this is an inflection element, and if [customers are] going to come by previous that and current the different eighty% which is ready All their methods and their facts they want what we’re going to tender 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 they view some as many as many as 16 clouds.”

    the first remark, “[customers have] got to movement…”, is charge debating. generous judgment tells us that not All purposes are always an excellent fitting for a cloud deployment for any number of explanations: required dependencies don't look to be with ease replicated in a cloud ambiance, protection concerns, necessity of charge-reductions, and so forth. So, consumers certainly achieve not occupy to lumber 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 scope to problem what she says within the next few statements. She explains that “[customers] both ought to rewrite, refactor, Come to a conclusion what goes the place…” certainly, IBM and other technology providers will, as they occupy already got, be afforded with opportunities to back consumers migrate inescapable functions to cloud environments. That’s first rate word for IBM’s very colossal carrier enterprise, and there is intent to assume the features neighborhood will capitalize 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 their mix shift to larger price...and is accretive to their obscene earnings margin…”

    however, there is a counter-argument to believe right here. in plot of rewriting/refactoring latest legacy applications, valued clientele might furthermore as an alternative opt for “off-the-shelf” options (SaaS or otherwise) which may furthermore demonstrate 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 fashion and its skills affect on their projections for transforming into their cloud related revenues.

    moving to IBM’s title 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, they recognize that IT tends to lumber in cycles. believe about what happened with the customer-server computing paradigm where “server sprawl” at eventual gave strategy to server explanation and a shove for homogeneity amongst programs. Is it no longer feasible that they might furthermore view whatever identical with cloud, where customers “awaken” sooner or later and question themselves why they occupy got 5 clouds once they can be able to operate with 1? accept as unaffected 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 furthermore comprehend, IBM is likely one of the bidders on the job 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 necessity upwards of sixteen clouds (the consume 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 certain IBM essential to disburse $34 billion on red Hat to entangle these alternatives. I already argued within the outdated zone that IBM had present capabilities in the same cloud technology areas the plot crimson Hat operates. If they believe about Ms. Rometty’s remark about “rewriting/refactoring”, what does purple Hat tender right here that IBM doesn't already have? this is travail that sits squarely in the zone of IBM’s functions community; a bunch that may “plug in” pink Hat’s know-how, or some other cloud expertise, the plot it makes sustain in keeping with client requirements.

    but, the pink Hat acquisition aside, if it seems that multi-cloud architectures at eventual “cut back” to easier, single cloud environments which deliver ample robustness and reliability to fulfill most customer necessities, then this “cloud clarification” may occupy a melodramatic impact on IBM’s suitable-line and bottom-line growth forecasts considering the fact that the commerce is tying both metrics peculiarly to its chance 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 they did became leer and they view a scale of a $1 trillion market…We mentioned to ourselves and continually saved asserting: What will they achieve more suitable to tackle the needs of their consumers? How can they accelerate their means to lumber after that? And knowing and there’s definitely an notable 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 inescapable angle of the overall cloud market. I struggled to find respectable data in back 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 mercurial 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 disburse more than $50 billion a yr worldwide climb [in 2017] to enhance inner most clouds, with the boom charge 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 buy rather some time to reach $1 trillion in complete cost even on the lofty halt of the growth latitude.

    One aspect technology leaders look to be principally generous at is arising with very colossal numbers when describing their total addressable market (TAM). Admittedly, I’m not inescapable if IBM’s estimate is realistic right here or now not on account that…who really is alert of at this time how massive the hybrid-cloud market may become? In back 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 great businesses with 1,000 or more personnel already occupy a hybrid cloud strategy in area. moreover, 51.four p.c are using each public and personal cloud infrastructures, and 29.2 percent forecast to achieve the equal within the subsequent year.” These metrics are advantageous to aid IBM’s argument, however they might even be interpreted to argue that most stupendous valued clientele already occupy a hybrid-cloud in region, and as a consequence recent hybrid-cloud deployments could truly reduce relocating forward. additional, if they retain in intelligence the discussion in zone 3.2 round customers deciding upon COTS/SaaS functions, as neatly as the random that single cloud architectures could in the halt set up themselves as the paramount 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 buy into account what key technologies IBM receives with crimson Hat that they didn’t already have, and why they felt they vital to disburse 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 furthermore 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 assume 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 occupy to determine how to plot WebSphere versus JBoss. And as other authors occupy counseled, red Hat commerce Linux (RHEL) may eventually supplant AIX as IBM’s de facto UNIX distribution. The linked migration travail would possibly coerce a generous quantity of know-how and pilot 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 alert that she did not declare 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 commerce Linux section. devoid of greater data from IBM and purple Hat, it’s really relatively 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 they circulate into 2019, and the course 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 gyrate 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 occupy 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 occupy no commerce 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 actual 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 commerce Linux commerce 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 worn 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 universal 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 paramount tech company for lots of the twentieth century saw a temper 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 race 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 gyrate into the realm’s #1 hybrid cloud company, offering businesses the most effectual open cloud own if you want to free up the plenary 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 synchronous 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 generous points access to hundreds of gifted developers globally who would no longer always travail 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 synchronous 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 edifice 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 course of Bob younger and Marc Ewing. youthful 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 course of Richard Stallman and the Linux kernel developed by Linus Torvalds. each the GNU and Linux occupy been released as open source software that may well be used by using any one freed from cost. most significantly, the GNU unvarying 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 commerce Linux distribution with a salary model of distributing the utility without freight and charging a subscription service for aid, updates and expert functions. It has maintained a circumstantial relationship with the open supply developer neighborhood and contributed to a lot of projects.

    today crimson Hat is a major commerce 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 commerce companies. In August 1999, purple Hat went public, reaching the eighth-biggest first-day capitalize 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 commerce protection Infrastructure mission of the branch of defense. The job is intended to modernize and consolidate the defense branch’s IT methods into an business-degree commerce cloud. IBM has issued a protest in opposition t the JEDI solicitation, pointing out, “all the course through the 12 months-long JEDI saga, countless concerns had been raised that this solicitation is geared toward a selected supplier. At no factor occupy steps been taken to alleviate these concerns.”

    IBM are complaining certainly about a requirement that bidders meet the defense tips programs company influence flat 6 security capabilities to tackle secret-stage defense coerce guidance. Two senior Republicans on the apartment Appropriations Committee, Reps. Steve Womack (R-Ark.) and Tom Cole (R-Okla.) occupy 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 eventual 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 coerce occupy a fundamental grounding on what it capacity to installation any know-how or practice which is ethically used.”

    Amazon is furthermore 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 get the confiscate resolution even when [it] is unpopular.” He added, “If great tech organizations are going to gyrate 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 piece 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 establish 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 apparatus 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 they rolled into Baghdad, they 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 compress 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 synchronous interview.”

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

    The author furthermore recommends:

    Silicon Valley’s debauch nexus: warfare, censorship and inequality[17 September 2018]

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    dear Colleague Letter: Addition of IBM as a Cloud useful resource issuer to the FY 2018 BIGDATA Solicitation | killexams.com actual 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 great 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 altenative as a piece 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 alleviate of their great 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 consume the following IBM elements to enhance the whole freight of cloud supplies together with an annual utilization draw over the term 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 altenative 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 jiffy 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 actual 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) commerce or share price. I awe 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 dispute that the “sum” of IBM + RedHat is more than the individual parts is not especially sturdy 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 universal understanding that the joint technology stacks in some measure radically change the “calculus of the cloud” just doesn’t get sense to me. Accordingly, whereas some analysts occupy expressed concern over the $34 billion charge tag, my focus here is mainly on IBM’s technology arguments and market chance arguments used to warrant the purchase.

    As a disclosure, I happened to eradicate 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 furthermore 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 furthermore 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, consume “hybrid-cloud” and “multi-cloud” terminology relatively interchangeably; but, I assume some definition is useful to add some precision to their analysis.

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

    Multi-cloud is the consume 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 consume 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. They can then assume of a hybrid-cloud as a form of a multi-cloud.

    Multi-Cloud and Hybrid-Cloud Diagram

    Source: Yves Sukhu

    This distinction is relatively notable given that IBM stresses its skill to particularly capture a great share of the growing hybrid-cloud architecture market via Red Hat’s technologies.

    3.0 QUESTIONABLE ASSUMPTIONS

    With their definitions in hand, let’s examine why IBM is doing this deal. In my opinion, the reasons expressed on the analyst call seethe 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 sturdy 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 lumber 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, they – these other clouds, they’re proprietary. They want an open solution [with] no lock-in. So lumber it across multiple cloud environments with no lock-in, [that’s] what the two of us achieve together…And then they say, it has got to address data security in a multi-cloud environment and then give us a course 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 come by “locked in” with (certain) cloud environments; but, instead, these customers want to be able to lumber 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 lumber no matter what cloud it is running on. The converse is furthermore true: a well-designed cloud application will be easy(ier) to lumber 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 tender a simple if slightly imprecise explanation: containers provide a course to package All the “parts” that an application needs to run:

    Illustration of Container Concept

    Source: Docker/Datamation

    As they view in the illustration above, a container can “contain” whatever an application needs to operate. In a bit of an over-simplification, if they want to lumber a containerized-application from one cloud to another, they just “lift” the container up from its existing cloud and drop the container on the recent 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 furthermore 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 comprehend everything they necessity to race the application, you can easily lumber 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 course to package and lumber their applications between clouds; and that in gyrate spurred the public cloud providers (AWS, Azure, Google, IBM, etc.) to provide container deployment features and services.

    One final point to get 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 approved orchestration systems (with Docker Swarm as an case 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 lumber applications across multiple cloud environments, they (customers) can certainly achieve that today if they design and deploy their applications appropriately, with containers as an case of one technology that can be quite useful. She, in fact, makes this very point stating “…[We] occupy been edifice and they occupy 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 eventual week…” But, let’s be clear: the other major cloud service providers (e.g. Amazon, Microsoft, etc.) furthermore tender 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 circumstantial discussion on the analyst call, perhaps IBM believes that its existing container management and cloud management services will be augmented in such a course 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 occupy 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 buy some time; time which competitors will certainly consume to their handicap to ensure they are not left behind. Second, I’ve already illustrious 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 infatuation to assume the companies would occupy made that clear; but they occupy 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 furthermore 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 zone 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 unseemly extrapolation on my part, but it leads me to miracle if the hybrid-cloud market is as sturdy as IBM suggests it is, and will be. furthermore as the previously linked article notes, IBM is not lonesome 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 bicker that Azure Stack, as an example, is proprietary whereas their open-source platform gives customers All the license and benefits that open-source solutions provide. It’s a worthwhile argument, and it may more strongly back Ms. Rometty’s remark 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 workable to the same extent with a closed solution. It would occupy 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 relatively skeptical that Red Hat OpenStack is going to materially change the “strength” of IBM’s hybrid (private/public) cloud offering.

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

    To summarize, I don’t (presently) view anything truly unique that emerges through a combination of the two companies’ cloud stacks. To be fair, the companies necessity time to develop tightly integrated solutions, and IBM is yet to apply the power of its progress organization against Red Hat’s technologies. But, if I’m right that “there is not a lot to view 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 they are entering a second angle 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 lumber [these remaining 80% of applications]. They either occupy to rewrite, refactor, choose what goes where, secure the data. These are inhibitors that quit them from going [to the cloud]. So this is only going to be achieved this lumber to the 80%, if you can lumber data and applications across multiple cloud[s], get that portable…”

    She continues…

    “But this is an inflection point, and if [customers are] going to come by past that and lumber the other 80% which is about All their processes and their data they necessity what we’re going to tender together, this robust environment. And so this 80% is…about…unlocking commerce value…the incurious clients has a thousand application[s] and the incurious client already has 5…that they view 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 generous fitting for a cloud deployment for any number of reasons: required dependencies are not easily replicated in a cloud environment, security concerns, necessity of cost-savings, etc. So, customers certainly achieve not occupy to lumber 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 assume there is scope to challenge what she says in the next few statements. She explains that “[customers] either occupy to rewrite, refactor, choose what goes where…” Indeed, IBM and other technology providers will, as they already have, be afforded with opportunities to alleviate customers migrate inescapable applications to cloud environments. That’s generous word for IBM’s very great service business, and there is understanding to assume the services group will capitalize relatively 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 assume Jim Kavanaugh, IBM’s CFO, correctly stated that “[distributed cloud solutions] accelerates their mix shift to higher value...and is accretive to their obscene 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 argue the COTS approach and its potential impact on their projections for growing their cloud related revenues.

    Moving to IBM’s title that multi-cloud environments will be more prevalent in the future, as per Ms. Rometty’s statement that “the incurious client already has 5 [clouds]…”, there is some data to backup what the company is saying here: a TechRepublic survey from 2017, for example, illustrious that the majority of companies surveyed had already adopted a hybrid-cloud architecture. But, they know that IT tends to lumber in cycles. assume about what happened with the client-server computing paradigm where “server sprawl” eventually gave course to server rationalization and a shove for homogeneity among systems. Is it not workable that they may view something similar with cloud, where customers “wake up” one day and question themselves why they occupy 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 course and is successful with its deployment, if the Department of Defense (DOD) can operate on a single cloud, then why does a given company necessity upwards of 16 clouds (using the “extreme” case 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 infirm points. Even if it were strong, I’m not certain IBM needed to disburse $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 they assume about Ms. Rometty’s remark about “rewriting/refactoring”, what does Red Hat tender here that IBM does not already have? This is travail 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 enough robustness and reliability to meet most customer requirements, then this “cloud rationalization” could occupy a melodramatic impact on IBM’s top-line and bottom-line growth forecasts since the company is tying both metrics specifically to its chance 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 imply what they did was leer and they view a scale of a $1 trillion market…We said to ourselves and constantly kept saying: What can they achieve better to address the needs of their clients? How achieve they accelerate their skill to lumber after that? And knowing and there’s really an notable 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 generous data in back 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 mercurial 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 disburse 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 buy quite some time to reach $1 trillion in total value even at the lofty halt of the growth range.

    One thing technology leaders look to be particularly generous at is coming up with very great numbers when describing their total addressable market (TAM). Admittedly, I’m not certain if IBM’s estimate is realistic here or not since…who really knows right now how colossal the hybrid-cloud market could become? In back 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 great organizations with 1,000 or more employees already occupy 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 achieve the same within the next year.” These metrics are useful to back IBM’s argument, but they could furthermore be interpreted to intimate that most great customers already occupy a hybrid-cloud in place, and thus recent hybrid-cloud deployments could actually reduce pitiable forward. Further, if they 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 paramount 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 disburse 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 interpret 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 assume 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 occupy to motif out how to position WebSphere versus JBoss. And as other authors occupy suggested, Red Hat Enterprise Linux (RHEL) might eventually supplant AIX as IBM’s de facto UNIX distribution. The related migration travail would presumably drive a just amount of technology and back services. Ms. Rometty illustrious 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 declare 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 they lumber 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 occupy 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 occupy no commerce relationship with any company whose stock is mentioned in this article.


    Larry Ellison Sees Expansive chance For Oracle's Revamped Cloud | killexams.com actual 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 come by more aggressive on charge to establish pressure on competitors.

    “We’ve got a really solid infrastructure foundation under their most strategic product, which is Oracle Database,” Ellison told fiscal analysts at a late October meeting in San Francisco. “It’s a land rush now for cloud, and they occupy the chance to be very charge aggressive.”

    Ellison used his presentation, which followed those of CEOs designate Hurd and Safra Catz at the halt of the company’s Oracle OpenWorld customer conference, to bicker that network speed, computer security, and database performance upgrades in Oracle’s cloud software are setting the table for more customers to lumber 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 occupy to,” he said. “Everyone is going to occupy to.”

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

    The software giant furthermore showed recent Autonomous Database capabilities including the skill for businesses to segregate computing jobs from other customers contending for resources. The recent infrastructure and database services may quicken customers’ pitiable 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 chance lonesome 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 they got the Oracle workloads in their cloud, how colossal would their cloud be?” Ellison said to analysts.

    The recent 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 charge and performance advantages compared with on-premises versions, according to Ellison. In one case of Oracle Cloud Infrastructure’s technical edge, Oracle is offering remote direct remembrance access (RDMA) so computers in a network can exchange data in remembrance faster without accessing each other’s operating systems. Oracle in its cloud service has furthermore separated controlling computers that race Oracle code from machines running customers’ code, to strengthen security. “It’s expensive—we had to add computers,” Ellison said.

    During a divorce 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 furthermore inspirit businesses to lumber more of their Oracle applications to online software services in a challenge to SAP.

    Cloud applications can alleviate 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 eventual year, compared with nearly 21% for Oracle, according to IDC.

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

    “There’s a actual opportunity,” Ellison said. “We’re pitiable 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 understanding actual results to vary materially. A discussion of such factors and other risks that affect Oracle’s commerce 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 recent information or future events.


    AWS joins the Cloud endemic Computing Foundation | killexams.com actual 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 endemic 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 piece 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 flabbergast that Amazon is joining the foundation that, to a great degree, is steering this project. It’s worth noting, though, that AWS makes consume of plenty of open source projects, and furthermore regularly releases its own projects on GitHub. The company furthermore 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 buy an vigorous role in the cloud endemic community, contributing to Kubernetes and other cloud endemic 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 associate 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 back 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 they didn’t view increased direct back for Kubernetes on AWS (you can, of course, already consume it on AWS, but only with the alleviate of tools from third-party vendors).



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