Where is enterprise infrastructure headed in 2015?

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Credit: Flickr / Frogman!

The enterprise industry is another year older … and hopefully somewhat wiser. Here’s what enterprise watchers should expect to see in 2015.

More cyber attacks

Sadly, this is an easy one. As bad as 2014 has been, and it has been bad, we’re just seeing the tip of the iceberg. Given the steady increase in value going through our systems (credit cards numbers, personal information, IP), organized crime and nation-sponsored attacks will continue to rise in quantity and sophistication. The current approaches to security clearly aren’t cutting it, which is why the security space is one of my biggest personal focus areas. (Full disclosure I’m an investor in Illumio, Menlo Security and ThreatStream, all companies in this space.)

AWS pushes further into the enterprise

Almost every startup that we fund today is using [company]Amazon[/company] Web Services, but it’s interesting to see AWS creep further into the medium and larger companies that dominate IT spending. At this year’s AWS Re:Invent, there were lots of compelling enterprise anecdotes, plenty of “all-in” stories, and, most importantly, the arrival of an ecosystem. There were startups and large companies alike announcing integrations with AWS with particular focus on the “-ities” — predictability, manageability, security, and availability. These are good signs of increased adoption in mainstream businesses where it’s now not “if” but “when” a company adopts cloud.

AWS: Reinvent

The rise of IaaS competitors

AWS continues with its strong lead, but 2014 also showed that there’s going to be a bigger fight than ever. In particular, [company]Google[/company] Compute Engine and [company]Microsoft[/company] Azure are rapidly improving their services and have the pocketbooks to fight this for the long term. Throw in Rackspace, IBM, vCloud Air, HP and the many other regional or vertically oriented offerings, and it’s going to be a major battle — with customers as the likely winners.

Containers get down to work

The rise of Docker has been one of the true success stories of 2014. However, it has also created a deluge of competitors (CoreOSRed HatUbuntu) and interesting co-opters (AmazonGoogle and VMware). Quite a year for a previously unheralded technology. The rise is real, but I believe that some of the hype will subside in 2015 as the some of the real work of making containers usable by enterprises begins in earnest.

Docker and the money container

Converged/hyper-converged infrastructure grabs the limelight

2014 saw continued excitement over “converged infrastructure,” pre-configured hardware/software bundles that are powerful and easy to adopt. Nutanix, VCE and Cisco UCS get most of the attention, but there’s lots of interesting competition on the way, especially as the latter two vendors update their relationship status to “It’s complicated.” Latest offerings include VMware’s EVO designs to new products from the big system vendors (Dell and HP are particularly aggressive). And I can personally attest to a slew of startups heading into this converged world with a variety of technologies and approaches.

APIs on the mind

I wrote about “mobile-first infrastructure” earlier this year and continue to think it will drive several longer-term infrastructure changes. In 2015, I think it will manifest itself most as the rise of APIs in enterprise development, as companies both produce and consume APIs like never before. Look for increased conversations, companies and challenges arising over this shift. (Full disclosure: I’m a backer of RunScope, which makes developer tools for this “API economy.”)

Network virtualization gets its legs

There has been much discussion of the arrival of software-defined networking (SDN). However, the term itself has been polluted to a point where it means different things to almost anyone you ask. I prefer the term network virtualization to speak more holistically about the advancement in separating out the logical network from the physical network. Cisco ACI and VMware NSX appear to have the lead, and 2014 saw significant movement from proof-of-concepts toward significant paid usage. Anecdotally, most of the adoption is in service providers, financial services and tech-heavy IT companies. 2015 should see further progress in the adoption, including by a broader set of consumers.

Big deals for big data

In 2014 there was nonstop talk about big data, analytics, and the opportunities and challenges of each. 2014 funding for companies has been unprecedented, ranging from Intel’s huge bet on Cloudera to substantial private investments in DataStax (driver of Cassandra)Databricks (driver of Spark)PlatforaAltiScaleDataGravity and numerous others. (My company, General Catalyst, invested in AltiScale and DataGravity.) Next year these companies will all focus on revenue — and we’ll see how the public markets respond to at least one Hadoop vendor, as Hortonworks is now a public company.

That’s one person’s cut at developments in enterprise infrastructure for 2015, and I’m sure I’ve omitted others that will be even bigger. That’s what is so fun about this space these days: We’re in a modern-day renaissance driven by the convergence of new technologies, new expectations and new challenges, all of which point toward more and bigger changes happening each year than may have taken place in prior decades. Here’s to the fun ride ahead.

Dr. Steve Herrod is a managing director at General Catalyst Partners and was CTO and senior vice president of R&D at VMware.

Note: This story was updated at 5:24 p.m. PST to correct the reference to Cisco ACI (application-centric infrastructure) not ACE.

5 Comments

TechYogJosh

I think converged infrastructure will further morph into infrastructure appliance. Overall infra simplicity will be a driver for enterprises. However, it will always be a work in progress and enterprises will make incremental shift in 2015 compared to 2014. Moreover, nothing in enterprise is an yearly initiative, they are multi-year ongoing efforts. Some of the efforts could kick start in 2015, however, a large part will be the continuance of already ongoing efforts. I think adoption of Docker will require close collaboration with application developers and it should not be termed as an “enterprise infra” trend. Moreover, I believe Microsoft and Oracle are really becoming serious (and successful too) in cloud initiatives. Enterprises must evaluate their offerings before jumping the guns on these mega providers.

Rann Xeroxx

You wrote an article discussing “enterprise” yet only mentioned Microsoft once and that was only in passing to discuss AWS. Even mentioning Docker and not mention Azure support for this layer.

Pull your head out of Silicon Valley, the majority of the world’s enterprise runs on mostly Microsoft. Now if you were writing a story about start ups or internet centric companies that run primarily Linux variant, than your lack of Microsoft inclusion would be understandable.

stephenherrod

You make a valid point on how my inclusion could have been stronger.

If there’s one thing I learned in my time at VMware, it’s that you need to show customers how to work with what they’re using today as well as where they’re headed in the future. In addition to strong plays in the above mentioned areas, Microsoft also has some excellent work underway in the big data space.

Chris Saunders

Reblogged this on Capacitive Flux and commented:
I agree with many of Mr. Herrod’s predictions in terms of technology. Consider the change in the IT ecosystems you work with/in that would be required to bring the value of these upcoming trends to your customers.

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