Mar
18
2020
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Big opening for startups that help move entrenched on-prem workloads to the cloud

AWS CEO Andy Jassy showed signs of frustration at his AWS re:Invent keynote address in December.

Customers weren’t moving to the cloud nearly fast enough for his taste, and he prodded them to move along. Some of their hesitation, as Jassy pointed out, was due to institutional inertia, but some of it also was due to a technology problem related to getting entrenched, on-prem workloads to the cloud.

When a challenge of this magnitude presents itself and you have the head of the world’s largest cloud infrastructure vendor imploring customers to move faster, you can be sure any number of players will start paying attention.

Sure enough, cloud infrastructure vendors (ISVs) have developed new migration solutions to help break that big data logjam. Large ISVs like Accenture and Deloitte are also happy to help your company deal with migration issues, but this opportunity also offers a big opening for startups aiming to solve the hard problems associated with moving certain workloads to the cloud.

Think about problems like getting data off of a mainframe and into the cloud or moving an on-prem data warehouse. We spoke to a number of experts to figure out where this migration market is going and if the future looks bright for cloud-migration startups.

Cloud-migration blues

It’s hard to nail down exactly the percentage of workloads that have been moved to the cloud at this point, but most experts agree there’s still a great deal of growth ahead. Some of the more optimistic projections have pegged it at around 20%, with the U.S. far ahead of the rest of the world.

Mar
05
2020
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Etsy’s 2-year migration to the cloud brought flexibility to the online marketplace

Founded in 2005, Etsy was born before cloud infrastructure was even a thing.

As the company expanded, it managed all of its operations in the same way startups did in those days — using private data centers. But a couple of years ago, the online marketplace for crafts and vintage items decided to modernize and began its journey to the cloud.

That decision coincided with the arrival of CTO Mike Fisher in July 2017. He was originally brought in as a consultant to look at the impact of running data centers on Etsy’s ability to innovate. As you might expect, he concluded that it was having an adverse impact and began a process that would lead to him being hired to lead a long-term migration to the cloud.

That process concluded last month. This is the story of how a company born in data centers made the switch to the cloud, and the lessons it offers.

Stuck in a hardware refresh loop

When Fisher walked through the door, Etsy operated out of private data centers. It was not even taking advantage of a virtualization layer to maximize the capacity of each machine. The approach meant IT spent an inordinate amount of time on resource planning.

Feb
20
2019
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Why Daimler moved its big data platform to the cloud

Like virtually every big enterprise company, a few years ago, the German auto giant Daimler decided to invest in its own on-premises data centers. And while those aren’t going away anytime soon, the company today announced that it has successfully moved its on-premises big data platform to Microsoft’s Azure cloud. This new platform, which the company calls eXtollo, is Daimler’s first major service to run outside of its own data centers, though it’ll probably not be the last.

As Daimler’s head of its corporate center of excellence for advanced analytics and big data Guido Vetter told me, the company started getting interested in big data about five years ago. “We invested in technology — the classical way, on-premise — and got a couple of people on it. And we were investigating what we could do with data because data is transforming our whole business as well,” he said.

By 2016, the size of the organization had grown to the point where a more formal structure was needed to enable the company to handle its data at a global scale. At the time, the buzz phrase was “data lakes” and the company started building its own in order to build out its analytics capacities.

Electric lineup, Daimler AG

“Sooner or later, we hit the limits as it’s not our core business to run these big environments,” Vetter said. “Flexibility and scalability are what you need for AI and advanced analytics and our whole operations are not set up for that. Our backend operations are set up for keeping a plant running and keeping everything safe and secure.” But in this new world of enterprise IT, companies need to be able to be flexible and experiment — and, if necessary, throw out failed experiments quickly.

So about a year and a half ago, Vetter’s team started the eXtollo project to bring all the company’s activities around advanced analytics, big data and artificial intelligence into the Azure Cloud, and just over two weeks ago, the team shut down its last on-premises servers after slowly turning on its solutions in Microsoft’s data centers in Europe, the U.S. and Asia. All in all, the actual transition between the on-premises data centers and the Azure cloud took about nine months. That may not seem fast, but for an enterprise project like this, that’s about as fast as it gets (and for a while, it fed all new data into both its on-premises data lake and Azure).

If you work for a startup, then all of this probably doesn’t seem like a big deal, but for a more traditional enterprise like Daimler, even just giving up control over the physical hardware where your data resides was a major culture change and something that took quite a bit of convincing. In the end, the solution came down to encryption.

“We needed the means to secure the data in the Microsoft data center with our own means that ensure that only we have access to the raw data and work with the data,” explained Vetter. In the end, the company decided to use the Azure Key Vault to manage and rotate its encryption keys. Indeed, Vetter noted that knowing that the company had full control over its own data was what allowed this project to move forward.

Vetter tells me the company obviously looked at Microsoft’s competitors as well, but he noted that his team didn’t find a compelling offer from other vendors in terms of functionality and the security features that it needed.

Today, Daimler’s big data unit uses tools like HD Insights and Azure Databricks, which covers more than 90 percents of the company’s current use cases. In the future, Vetter also wants to make it easier for less experienced users to use self-service tools to launch AI and analytics services.

While cost is often a factor that counts against the cloud, because renting server capacity isn’t cheap, Vetter argues that this move will actually save the company money and that storage costs, especially, are going to be cheaper in the cloud than in its on-premises data center (and chances are that Daimler, given its size and prestige as a customer, isn’t exactly paying the same rack rate that others are paying for the Azure services).

As with so many big data AI projects, predictions are the focus of much of what Daimler is doing. That may mean looking at a car’s data and error code and helping the technician diagnose an issue or doing predictive maintenance on a commercial vehicle. Interestingly, the company isn’t currently bringing to the cloud any of its own IoT data from its plants. That’s all managed in the company’s on-premises data centers because it wants to avoid the risk of having to shut down a plant because its tools lost the connection to a data center, for example.

Jan
08
2019
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Amazon reportedly acquired Israeli disaster recovery service CloudEndure for around $200M

Amazon has reportedly acquired Israeli disaster recovery startup CloudEndure. Neither company has responded to our request for confirmation, but we have heard from multiple sources that the deal has happened. While some outlets have been reporting the deal was worth $250 million, we are hearing it’s closer to $200 million.

The company provides disaster recovery for cloud customers. You may be thinking that disaster recovery is precisely why we put our trust in cloud vendors. If something goes wrong, it’s the vendor’s problem — and you would be right to make this assumption, but nothing is simple. If you have a hybrid or multi-cloud scenario, you need to have ways to recover your data in the event of a disaster like weather, a cyberattack or political issue.

That’s where a company like CloudEndure comes into play. It can help you recover and get back and running in another place, no matter where your data lives, by providing a continuous backup and migration between clouds and private data centers. While CloudEndure currently works with AWS, Azure and Google Cloud Platform, it’s not clear if Amazon would continue to support these other vendors.

The company was backed by Dell Technologies Capital, Infosys and Magma Venture Partners, among others. Ray Wang, founder and principal analyst at Constellation Research, says Infosys recently divested its part of the deal and that might have precipitated the sale. “So much information is sitting in the cloud that you need backups and regions to make sure you have seamless recovery in the event of a disaster,” Wang told TechCrunch.

While he isn’t clear what Amazon will do with the company, he says it will test just how open it is. “If you have multi-cloud and want your on-prem data backed up, or if you have backup on one cloud like AWS and want it on Google or Azure, you could do this today with CloudEndure,” he said. “That’s why I’m curious if they’ll keep supporting Azure or GCP,” he added.

CloudEndure was founded in 2012 and has raised just over $18 million. Its most recent investment came in 2016 when it raised $6 million, led by Infosys and Magma.

May
09
2018
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Google to acquire cloud migration startup Velostrata

Google announced today it was going to acquire Israeli cloud migration startup, Velostrata. The companies did not share the purchase price.

Velostrata helps companies migrate from on-premises datacenters to the cloud, a common requirement today as companies try to shift more workloads to the cloud. It’s not always a simple matter though to transfer those legacy applications, and that’s where Velostrata could help Google Cloud customers.

As I wrote in 2014 about their debut, the startup figured out a way to decouple storage and compute and that had wide usage and appeal. “The company has a sophisticated hybrid cloud solution that decouples storage from compute resources, leaving the storage in place on-premises while running a virtual machine in the cloud,” I wrote at the time.

But more than that, in a hybrid world where customer applications and data can live in the public cloud or on prem (or a combination), Velostrata gives them control to move and adapt the workloads as needed and prepare it for delivery on cloud virtual machines.

“This means [customers] can easily and quickly migrate virtual machine-based workloads like large databases, enterprise applications, DevOps, and large batch processing to and from the cloud,” Eyal Manor VP of engineering at Google Cloud wrote in the blog post announcing the acquisition.

This of course takes Velostrata from being a general purpose cloud migration tool to one tuned specifically for Google Cloud in the future, but one that gives Google a valuable tool in its battle to gain cloud marketshare.

In the past, Google Cloud head Diane Greene has talked about the business opportunities they have seen in simply “lifting and shifting” data loads to the cloud. This acquisition gives them a key service to help customers who want to do that with the Google Cloud.

Velostrata was founded in 2014. It has raised over $31 million from investors including Intel Capital and Norwest Venture partners.

Nov
28
2017
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VMware expands AWS partnership with new migration and disaster recovery tools

 Remember how VMware was supposed to be disrupted by AWS? Somewhere along the way it made a smart move. Instead of fighting the popular cloud platform, it decided to make it easier for IT to use its products on AWS. Today, at the opening of the AWS re:invent customer conference, it announced plans to expand that partnership with some new migration and disaster recovery services. As Mark… Read More

Dec
09
2015
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CloudEndure Disaster Recovery Service Secures $7 Million Investment

Frustrated IT executive sitting on floor of data center. Disasters can take many forms from weather events to database corruptions. CloudEndure, a cloud-based disaster recovery service, announced a $7 million investment today led by Indian consulting firm Infosys and previous investor Magma Venture Partners. Today’s investment brings the total to just over $12 million. At first blush, Infosys may seem like an odd partner, a traditional… Read More

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