Welcome!

Blog Feed Post

Digital Disruptors: “Born on the Cloud”

http://cloudbestpractices.net/wp-content/uploads/2017/11/kodak-566x306.jpg 566w, http://cloudbestpractices.net/wp-content/uploads/2017/11/kodak.jpg 570w" sizes="(max-width: 300px) 100vw, 300px" />Disrupt or be disrupted. That is the simple choice facing every CEO today, whether they will have their own “Kodak Moment” and be decimated by a digital native competitor.

With Toys R Us joining the ranks of businesses that fail to adapt to digital competition it would seem obvious that lacking a clear digital strategy today is a negligent death wish.

Cloud Native Competitive Advantage

In a VentureBeat article the author envisions ‘the future of enterprise tech‘, describing how pioneering organizations like Netflix are entirely embracing a Cloud paradigm for their business, moving away from the traditional approach of owning and operating your own data centre populated by EMC, Oracle and VMware.

http://cloudbestpractices.net/wp-content/uploads/2017/11/data-center-768... 768w, http://cloudbestpractices.net/wp-content/uploads/2017/11/data-center-367... 367w, http://cloudbestpractices.net/wp-content/uploads/2017/11/data-center.jpg 930w" sizes="(max-width: 300px) 100vw, 300px" />
Enterprise data centre

Instead they are moving to ‘web scale IT’ via on demand rental of containers, commodity hardware and NoSQL databases, but critically it’s not just about swapping out the infrastructure components. In short, we’ve entered the ‘Cloud Era’, in terms of major waves of enterprise IT innovation.

This approach to IT has also come to be known as a ‘Cloud Native’ architecture, the new term that Google, VMware, and many others are using to describe a software and delivery model that centres around Linux containers like Docker, employed to deliver ‘Microservices’, a suite of components rather than one large software monolith.

In his InformationWeek article Charles Babcock summarizes the concept of the ‘Cloud Native’ enterprise, a shift also described by the New Stack.

Cloud Native, Digital Native

While the majority of this guide focuses on the technologies and DevOps practices that define Cloud Native, an especially key principle to highlight first is how the Cloud Native concept now extends to business models.

For example as Diginomica writes Mondo has launched the first ‘Cloud Native Bank’ – A digital bank born and enabled entirely on Cloud computing. This is part of a trend that recognizes how hyper-competitive ‘digital native’ businesses can be, with Starling also launching as a digital only banking service.

When you consider that one of the biggest impediments to launching a digital strategy is the existing legacy organization and IT, then a business model born entirely free of this baggage will naturally be able to compete in a form that can’t be matched by incumbents who do.

It’s not to say existing firms can’t exploit the trend, also with significant disruptive impact.

Qantas airlines recently migrated all of their business systems to public IaaS, and as part of this migration process also moved to a new software model of microservices, as well as transforming their development practices too. Ie. they went fully Cloud Native.

The airline is now halfway through its shift of Qantas to the AWS public cloud, having already moved 10 out of the website’s 20 new microservices. It expects to complete the migration by the end of the year.

Updates that once took the airline months to deploy to the website now take just 30 minutes.

Qantas expects to save more than $30 million over five years thanks to the move, and has already experienced a 90 percent reduction in infrastructure costs.

Our case study reviews for the Cloud Native trend include other businesses like Nike, so it is certainly the case that the opportunities presented by the technology are open to all – The key point to emphasize is this broader strategic perspective. Ie it’s not a technology-only revolution, the critical success factor is understanding what these new technologies make possible, and how.

From Mainframe to Microservices – Harnessing the Cloud Era

Of course the primary context for this evolution is the competitive advantage it makes possible, the ability to ‘disrupt’ industries through much faster and more effective innovation cycles.

A great primer for Microservices, one of the core Cloud Native principles, is the Wall Street Journal article Innovate or Die – The Rise of Microservices, where they contexualize its emergence as part of the fourth wave of IT, the Era of the Cloud.

http://cloudbestpractices.net/wp-content/uploads/2017/11/microservices-e... 300w, http://cloudbestpractices.net/wp-content/uploads/2017/11/microservices-e... 390w, http://cloudbestpractices.net/wp-content/uploads/2017/11/microservices-e... 103w" sizes="(max-width: 553px) 100vw, 553px" />The article very eloquently maps out a timeline of the ongoing evolution of enterprise software architecture, from ‘Mainframe to Microservices’, the modular software design approach that Cloud enables, and would place these leaders at the far right, versus the enterprise incumbents who are typically spread across the whole timeline, right back to the mainframes that still run giant business exchanges like credit card payments.

The opening line sums up the inflection point we are experiencing:

“Software has emerged as the critical differentiator in every industry, from financial services to fashion, as “technology first” startups disrupt global markets.”

In other words the central theme is that software engineering is emphasized as a method of strategic advantage, by ‘technology first’ businesses, it’s no longer just a necessary operational cost. Indeed research has shown that those firms that invest more in new innovation-centric software techniques like DevOps and Continuous Deployment, are generating more revenues than their ‘laggard’ peers.

Born Global

One aspect of this is to encourage entrepreneurs to think as big as possible, to go global from day one. Indeed this article describes this effect of ‘Born Global’. That entrepreneurs should start with the end in mind and begin immediately as a company conceived to be global, not simply grow into it over time.

For example check out this short case study of Ocado, and how they are using the Google Cloud to run an entirely online-only supermarket.

They have been ‘Born Virtual’, intended to exploit and ride the disruption that is happening that their competitors like Tescos must try and also ride but while also having one heavy foot anchored to their traditional business models of retail stores. Instead they operate entirely as a Virtual Enterprise.

As their executive says:

Ocado doesn’t operate out of physical stores. Instead, our customers place their orders online via our webshop and mobile applications. These orders are then picked and packed in huge automated Customer Fulfilment Centres (CFCs), the largest of their kind in the world. They are then delivered to customers’ kitchens in one hour delivery slots by our own delivery fleet.

Technology is at the core of almost everything Ocado does. We consider ourselves a technology company that also does retail. Our culture and make-up is much closer to that of Google than it is a bricks and mortar retailer. We started shipping orders in 2002 and over the past 12 years we have been engaged in a continual process of rapid innovation. Our solution is as unique as our business model and the fact that we own almost every line of source code in this solution means we can evolve it, optimise it and exploit it.

We have a unique business model that is considered highly disruptive within the retail sector, due in part to the scale of automation that we employ.

The post Digital Disruptors: “Born on the Cloud” appeared first on CBPN.

Read the original blog entry...

More Stories By Cloud Best Practices Network

The Cloud Best Practices Network is an expert community of leading Cloud pioneers. Follow our best practice blogs at http://CloudBestPractices.net

Latest Stories
"Akvelon is a software development company and we also provide consultancy services to folks who are looking to scale or accelerate their engineering roadmaps," explained Jeremiah Mothersell, Marketing Manager at Akvelon, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Enterprises are adopting Kubernetes to accelerate the development and the delivery of cloud-native applications. However, sharing a Kubernetes cluster between members of the same team can be challenging. And, sharing clusters across multiple teams is even harder. Kubernetes offers several constructs to help implement segmentation and isolation. However, these primitives can be complex to understand and apply. As a result, it’s becoming common for enterprises to end up with several clusters. Thi...
In his session at 21st Cloud Expo, Carl J. Levine, Senior Technical Evangelist for NS1, will objectively discuss how DNS is used to solve Digital Transformation challenges in large SaaS applications, CDNs, AdTech platforms, and other demanding use cases. Carl J. Levine is the Senior Technical Evangelist for NS1. A veteran of the Internet Infrastructure space, he has over a decade of experience with startups, networking protocols and Internet infrastructure, combined with the unique ability to it...
"ZeroStack is a startup in Silicon Valley. We're solving a very interesting problem around bringing public cloud convenience with private cloud control for enterprises and mid-size companies," explained Kamesh Pemmaraju, VP of Product Management at ZeroStack, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
"Space Monkey by Vivent Smart Home is a product that is a distributed cloud-based edge storage network. Vivent Smart Home, our parent company, is a smart home provider that places a lot of hard drives across homes in North America," explained JT Olds, Director of Engineering, and Brandon Crowfeather, Product Manager, at Vivint Smart Home, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
"Infoblox does DNS, DHCP and IP address management for not only enterprise networks but cloud networks as well. Customers are looking for a single platform that can extend not only in their private enterprise environment but private cloud, public cloud, tracking all the IP space and everything that is going on in that environment," explained Steve Salo, Principal Systems Engineer at Infoblox, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Conventio...
"Codigm is based on the cloud and we are here to explore marketing opportunities in America. Our mission is to make an ecosystem of the SW environment that anyone can understand, learn, teach, and develop the SW on the cloud," explained Sung Tae Ryu, CEO of Codigm, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
The question before companies today is not whether to become intelligent, it’s a question of how and how fast. The key is to adopt and deploy an intelligent application strategy while simultaneously preparing to scale that intelligence. In her session at 21st Cloud Expo, Sangeeta Chakraborty, Chief Customer Officer at Ayasdi, provided a tactical framework to become a truly intelligent enterprise, including how to identify the right applications for AI, how to build a Center of Excellence to oper...
"IBM is really all in on blockchain. We take a look at sort of the history of blockchain ledger technologies. It started out with bitcoin, Ethereum, and IBM evaluated these particular blockchain technologies and found they were anonymous and permissionless and that many companies were looking for permissioned blockchain," stated René Bostic, Technical VP of the IBM Cloud Unit in North America, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Conventi...
Gemini is Yahoo’s native and search advertising platform. To ensure the quality of a complex distributed system that spans multiple products and components and across various desktop websites and mobile app and web experiences – both Yahoo owned and operated and third-party syndication (supply), with complex interaction with more than a billion users and numerous advertisers globally (demand) – it becomes imperative to automate a set of end-to-end tests 24x7 to detect bugs and regression. In th...
Large industrial manufacturing organizations are adopting the agile principles of cloud software companies. The industrial manufacturing development process has not scaled over time. Now that design CAD teams are geographically distributed, centralizing their work is key. With large multi-gigabyte projects, outdated tools have stifled industrial team agility, time-to-market milestones, and impacted P&L stakeholders.
High-velocity engineering teams are applying not only continuous delivery processes, but also lessons in experimentation from established leaders like Amazon, Netflix, and Facebook. These companies have made experimentation a foundation for their release processes, allowing them to try out major feature releases and redesigns within smaller groups before making them broadly available. In his session at 21st Cloud Expo, Brian Lucas, Senior Staff Engineer at Optimizely, discussed how by using ne...
"Cloud Academy is an enterprise training platform for the cloud, specifically public clouds. We offer guided learning experiences on AWS, Azure, Google Cloud and all the surrounding methodologies and technologies that you need to know and your teams need to know in order to leverage the full benefits of the cloud," explained Alex Brower, VP of Marketing at Cloud Academy, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clar...
Widespread fragmentation is stalling the growth of the IIoT and making it difficult for partners to work together. The number of software platforms, apps, hardware and connectivity standards is creating paralysis among businesses that are afraid of being locked into a solution. EdgeX Foundry is unifying the community around a common IoT edge framework and an ecosystem of interoperable components.
"CA has been doing a lot of things in the area of DevOps. Now we have a complete set of tool sets in order to enable customers to go all the way from planning to development to testing down to release into the operations," explained Aruna Ravichandran, Vice President of Global Marketing and Strategy at CA Technologies, in this SYS-CON.tv interview at DevOps Summit at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.