Navint Partners, LLC research report shows that Fortune 500 companies are leveraging cloud-based data centers at some scale of magnitude. The traditional data centers are on the path to extinction.
The challenges of running databases and applications on cloud-based data centers and on-premise data centers come from economies of flash, economies of scale, and managed services. Some of the in-memory database platforms and big data analytics require procuring super-colossal infrastructure servers and storage area for database servers. When a corporation performs hardware and database sizing assessment, they may not be able to measure the extent of the volume of business transactions potentially. Organization goes through mergers and acquisitions. Corporations are looking to scale down the total cost of ownership and maximize the value from hosted services that provide infrastructure as a service. An addition of a business unit can change the landscape of the hardware instances and database instances running on the infrastructure platform. A merger can lead to consolidation of infrastructure, and networking equipment. Inadequate infrastructure requires frequent procurement cycles with varying costs.
Today’s technology trends
Excessive sizing of hardware on traditional data centers can result in unutilized CPU resources. The cost of technology infrastructure is high, and the rewards are minimum in a scenario like this. The velocity of the transactions hitting the database could be high during the business hours of the corporation. Global enterprises need flexibility and agility to scale up and scale down the computing power to fuel the big data analytics on multiple regions across the globe depending on their business requirements. The infrastructure costs can go above and beyond the estimated costs to keep the data centers up and running with backup and restore mechanism. The cost also arises from the fact that there should be a support around the clock covering multiple time zones to support the business operations. There are several resources needed to operate the system. Systems require resources to perform installation, configuration, and application programming development, testing and integrating end-to-end systems.
Potential of Pay-as-you-go Cloud Computing options
Organizations want to slash the cost of infrastructure and increase the return on investment. The costs can vary for enterprises, small and medium businesses, and individuals. The needs digress for each business. Therefore, currently market is ripe with several cloud-based models such as Platform as a service, Infrastructure as a service, and Software as a service. Most of the cloud providers provide elastic cloud computing capabilities with bandwidth and database storage pay-as-you-go options. The corporations can leverage both software and hardware applications pre-configured by the cloud partner as a platform. Some organizations save costs by running the servers on segmented and partitioned infrastructure services at operating system and server level.
SAP HANA Cloud Platform
SAP HANA is modern big data analytics in-memory platform that provisions platform as a service that can run on-premise as well as on Cloud Platform. SAP S/4HANA is a classification of SAP Netweaver Infrastructure Business Applications of SAP powered by SAP HANA. Apart from SAP HANA Enterprise Cloud Platform run by SAP itself on SAP HANA Cloud created and owned by SAP; SAP HANA also runs on SAP HANA Enterprise Cloud partners to encourage collaboration with the partners. The Enterprise editions of SAP HANA and S/4 HANA run on on-premise data centers. SAP has performed a major overhaul on SAP Managed Cloud as a service (MCAS) for SAP HANA. Now, they are referred as Partner Managed Cloud providers. SAP promotes the scalability and growth to integrate multiple infrastructure and cloud vendors with SAP HANA. SAP can host SAP HANA Cloud Platform. Other than that, SAP also certified SAP HANA Enterprise Cloud partners that can host these services. There are presently around 76 Enterprise cloud providers that aid the framework of partner-managed services for SAP HANA. All these cloud providers can host SAP HANA database platform on the cloud on a pay-as-you-go basis. The major SAP cloud providers that bring the cloud diffusion for SAP HANA include Amazon Web Services, Microsoft Azure, IBM, Dell, Hitachi Systems, HP, AT&T, ATOS, Capgemini, CenturyLink Technology Services, Ciber, Fujitsu, intelligence, Secure-24, T-Systems, Hitachi Consulting, NEC, NTT Data, Verizon, and Telefonica Chile.
In the recent times, Oracle is trying to introduce a brand new concept of personnel as a service to assist the corporations running Oracle Cloud in finding a new market. Despite the hosting performed by the cloud partner, there is still database that needs administration. Oracle Applications need to be developed from development framework. Oracle is planning to bring personnel as a service to reduce the capital costs for the corporations to create a new value chain. However, the model is slightly different from SAP Cloud Consulting when contrasted with Oracle cloud operations.
SAP strategized many SAP HANA Cloud Platform pay-as-you-go service options with new set of five-tier layer concept for the introductory edition, enterprise edition, Small and medium businesses (SMB) edition, DBA edition, and individual edition. The basic version increments the database sizes of SAP HANA with configurations of one GB, 32 GB, and 64 GB models from one employee to unlimited personnel. Due to the economies of scale, corporations sometimes cannot entirely move to the cloud-based platform, they may still have a large footprint of their application stack in on-premise data centers.
SAP HANA Cloud Platform delivers cloud connector option, which is a tectonic shift to connect to the on-demand data migration, database writes, and database read operations from on-premise data centers. SAP provides identity management, security, and Fiori applications with SAP HANA Cloud Connector. The basic edition aids sandbox environments for performing prototyping of the solutions. SMBs can take the advantage of discounted option with licensed numbers in the increments of 30, 10, and 10. This Enterprise grade SAP HANA Cloud Platform leverages quality and production deployments with staggering RAM in the sizes of four GB, eight GB, and 20 GB. The cores configuration starts with dual core to quad core options. The Enterprise Edition offers Hexa-core processor to 12-core processor with RAM sizes of 12 GB, 24 GB, and custom RAM size of 100 TB RAM. The storage options vary from 200 GB to 400 GB to custom size of petabytes to meet the dynamically evolving needs of the corporations.
The rise of cloud-based centers eclipse traditional data centers
The rise of cloud-based data centers outstrips the traditional data centers. Cisco’s research report (2014) shows that the massive amounts of combined traffic generated from the global traditional data centers and global cloud data centers have shown a year-to-year growth rate of 23% from 2013 through 2018. Organizations are leaning towards managed services partner to deliver software and hardware big data analytics appliance from the cloud to gain seamless experience to achieve operational excellence. SAP HANA (High-Performance Analytics Appliance) is such an example than runs on SAP HANA Cloud Platform.
Cisco, predicts that the big data traveling through cloud-based data centers will raise to more than 75% by 2018, contrasted with less than 25% of traditional data centers traffic. Goldman Sachs’s research report (2015) shows forward-thinking corporations are pushing their application management operations towards the cloud. The cloud-based data centers spend will grow to $43 billion at the end of the year 2018, when contrasted with a $16 billion spend in 2014. The digital enterprises leverage cloud-computing platforms similar to utility architecture that encompass the elements of installation, technical setup, configuration, and building software applications, and resources with pay-as-you-go approach.
The predictions from all the research firms are purely based on the real-time big data generated from data centers and traffic of Internet every year. The spend on the hardware equipment and personnel on cloud-based data centers is exponentially increasing for every quarter. All the major cloud vendors are continuing to invest into the network storage and big data databases powered by cloud-computing platforms. The public cloud-based data centers are bringing disruptive innovation to faster time to value, agility to scale the computing power based on the growing needs of the business. IDC research report (2015), highlighted that the spend on public cloud-based data centers is $21 billion for the year 2015 with a compounded annual growth of 32% from 2014.
Considering the Internet network traffic, real-time big data generated by the cloud and the facts from all the research firms, the reality is that the cloud-based data centers will continue to eclipse the traditional data centers.
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