Welcome!

Related Topics: Linux Containers, Microsoft Cloud, Containers Expo Blog, Silverlight, Agile Computing, @CloudExpo, @BigDataExpo

Linux Containers: Article

Massive Windows Server 2003 Services Opportunity Revealed [@AppZero_Inc]

$45 billion market around Window Server 2003 End of Support surfaced

Most people are aware that Windows Server 2003 is coming to the End of Support (EOS) on July 14th 2015.  This means enterprises are more or less forced to stop running applications on the WS2003 Operating System, migrate them to a newer OS or replace them.  EOS dramatically changes the solid "run-your-business operating platform" to one where there will be no security patches, no compliance and escalating costs.  There are few events that open up such large security concerns, throw compliance out the window and have a greater than million dollar price tag all at the same time.

In one of the Microsoft sessions at the recent World Wide Partner Conference (WPC), they revealed that there are 22 million machines still running Windows Server 2003. They estimate that 53% of them are physical, likely running on old hardware providing a big hardware refresh opportunity as well. Geographic estimates break down as follows:

  • 8M NA
  • 7M APAC
  • 5M EMEA
  • 2M Africa & S. America

It is impressive to see Microsoft sharing this information with its partners and evangelizing the huge services opportunity that exists for those partners to help customers migrate to WS 2012 or the Azure Cloud.

HP, a Microsoft and AppZero partner, was evangelizing the opportunity with banners all around the conference, in the hallways and even in the bathrooms.

Over the past year or so as we at AppZero have prepared for WS2003 EOS, we have collected numerous data points on the topic, in the areas of security patches, machine counts and migration costs.

WS2003 was patched 37 times by Microsoft in 2013 or on average more then 3 times a month, but not for much longer.  Starting July 14, 2015 there will be no more patches and security holes will begin to pile up on the unsupported operating system. Many regulations and compliance rules require applications to be running on a supported OS.

We've heard many industry people outside of Microsoft cite the number of affected machines at around 10 million. Last week at the Microsoft WPC Conference, the number seemed to jump from 10 million to 22 million. It is difficult to know the number precisely because the WS 2003 Enterprise Edition allows for creation of 4 instances and the Data Center Edition allows for unlimited creation of instances per physical processor in a machine. This makes counting the number of production instances more complicated than simply counting licenses.  Some people I have talked with think the number might actually be more like 30 million WS2003 production machines.

System Integrators typically charge customers $3,000 to $4,000 per machine for a modernization effort.  If we assume that 15 million machines will be migrated in the next 24 - 36 months, the market sizing calculation would look something like this:

$3,000 per machine x 15 million machines = $45 billion opportunity

Not only is the services opportunity huge, the destination where all these applications land is a big issue.  Companies are making a decade-long strategic and purchasing decision about where to host and run these machines. The following critical or strategic questions typically are raised in the context of a large migration project:

  • Should I move my applications to the cloud?
  • Should I buy new Cisco, Dell or HP machines?
  • Should I change my managed out-sourced environment?

Landing pad environment sizing might be 5 times as large as the $45 billion services opportunity. No matter what the exact numbers are, the opportunity is incredibly large and there is urgency to act today.

"I am always looking for a way to communicate better and cut to the heart of any discussion. So, if you have thoughts on this subject drop me a line at GregO {@} Appzero {dot} com or tweet me at @gregoryjoconnor."

More Stories By Greg O'Connor

Greg O'Connor is President & CEO of AppZero. Pioneering the Virtual Application Appliance approach to simplifying application-lifecycle management, he is responsible for translating Appzero's vision into strategic business objectives and financial results.

O'Connor has over 25 years of management and technical experience in the computer industry. He was founder and president of Sonic Software, acquired in 2005 by Progress Software (PRGS). There he grew the company from concept to over $40 million in revenue.

At Sonic, he evangelized and created the Enterprise Service Bus (ESB) product category, which is generally accepted today as the foundation for Service Oriented Architecture (SOA). Follow him on Twitter @gregoryjoconnor.

Latest Stories
The emerging Internet of Everything creates tremendous new opportunities for customer engagement and business model innovation. However, enterprises must overcome a number of critical challenges to bring these new solutions to market. In his session at @ThingsExpo, Michael Martin, CTO/CIO at nfrastructure, outlined these key challenges and recommended approaches for overcoming them to achieve speed and agility in the design, development and implementation of Internet of Everything solutions wi...
Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more business becomes digital the more stakeholders are interested in this data including how it relates to business. Some of these people have never used a monitoring tool before. They have a question on their mind like “How is my application doing” but no id...
Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is expected in the amount of information being processed, managed, analyzed, and acted upon by enterprise IT. This amazing is not part of some distant future - it is happening today. One report shows a 650% increase in enterprise data by 2020. Other estimates are even higher....
Smart Cities are here to stay, but for their promise to be delivered, the data they produce must not be put in new siloes. In his session at @ThingsExpo, Mathias Herberts, Co-founder and CTO of Cityzen Data, will deep dive into best practices that will ensure a successful smart city journey.
Identity is in everything and customers are looking to their providers to ensure the security of their identities, transactions and data. With the increased reliance on cloud-based services, service providers must build security and trust into their offerings, adding value to customers and improving the user experience. Making identity, security and privacy easy for customers provides a unique advantage over the competition.
Qosmos has announced new milestones in the detection of encrypted traffic and in protocol signature coverage. Qosmos latest software can accurately classify traffic encrypted with SSL/TLS (e.g., Google, Facebook, WhatsApp), P2P traffic (e.g., BitTorrent, MuTorrent, Vuze), and Skype, while preserving the privacy of communication content. These new classification techniques mean that traffic optimization, policy enforcement, and user experience are largely unaffected by encryption. In respect wit...
SYS-CON Events announced today that 910Telecom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...
SYS-CON Events announced today that Pulzze Systems will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Pulzze Systems, Inc. provides infrastructure products for the Internet of Things to enable any connected device and system to carry out matched operations without programming. For more information, visit http://www.pulzzesystems.com.
There is growing need for data-driven applications and the need for digital platforms to build these apps. In his session at 19th Cloud Expo, Muddu Sudhakar, VP and GM of Security & IoT at Splunk, will cover different PaaS solutions and Big Data platforms that are available to build applications. In addition, AI and machine learning are creating new requirements that developers need in the building of next-gen apps. The next-generation digital platforms have some of the past platform needs a...
Data is an unusual currency; it is not restricted by the same transactional limitations as money or people. In fact, the more that you leverage your data across multiple business use cases, the more valuable it becomes to the organization. And the same can be said about the organization’s analytics. In his session at 19th Cloud Expo, Bill Schmarzo, CTO for the Big Data Practice at EMC, will introduce a methodology for capturing, enriching and sharing data (and analytics) across the organizati...
DevOps at Cloud Expo – being held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's largest enterprises – and delivering real results. Am...
Traditional on-premises data centers have long been the domain of modern data platforms like Apache Hadoop, meaning companies who build their business on public cloud were challenged to run Big Data processing and analytics at scale. But recent advancements in Hadoop performance, security, and most importantly cloud-native integrations, are giving organizations the ability to truly gain value from all their data. In his session at 19th Cloud Expo, David Tishgart, Director of Product Marketing ...
Fact: storage performance problems have only gotten more complicated, as applications not only have become largely virtualized, but also have moved to cloud-based infrastructures. Storage performance in virtualized environments isn’t just about IOPS anymore. Instead, you need to guarantee performance for individual VMs, helping applications maintain performance as the number of VMs continues to go up in real time. In his session at Cloud Expo, Dhiraj Sehgal, Product and Marketing at Tintri, wil...
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - comp...
StarNet Communications Corp has announced the addition of three Secure Remote Desktop modules to its flagship X-Win32 PC X server. The new modules enable X-Win32 to safely tunnel the remote desktops from Linux and Unix servers to the user’s PC over encrypted SSH. Traditionally, users of PC X servers deploy the XDMCP protocol to display remote desktop environments such as the Gnome and KDE desktops on Linux servers and the CDE environment on Solaris Unix machines. XDMCP is used primarily on comp...