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Top priorities for IT infrastructure investments: What’s more important than business transformation?

TBR’s recently launched Infrastructure Strategy Customer Research report surveys 300 IT decision makers responsible for IT infrastructure globally and by industry vertical, such as technology, public sector and healthcare & life sciences, and by organization size, including small, medium and enterprise.

 

Join Principal Analyst and Engagement Manager Angela Lambert for insights, data and analysis on exactly what IT buyers are concerned with in the post-COVID-19 transition, with billions of dollars of IT investment on the line. Angela will discuss the challenges and priorities guiding investment plans, key areas of infrastructure expansion, plans for data center consolidation, and expectations for edge computing and multicloud adoption.

 

In this FREE webinar you’ll learn:

  • The top priorities influencing IT infrastructure investments today, and the top challenges slowing business transformation
  • Key insights for OEM, ODEM, cloud, service provider, software and security professionals
  • Differences in needs across small, midsize and enterprise businesses
  • How data center consolidation will impact infrastructure investment, edge adoption and shifts to public cloud resources

 

Mark your calendars for Thursday, June 30, 2022, at 1 p.m. EDT,
and REGISTER to reserve your space.


Related content:

  1. Free Copy: Top Predictions for Data Center in 2022

 

Click here to register for more TBR Webinars

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Insights from TBR’s inaugural Enterprise Edge Compute Market Landscape

The edge computing market spans a spectrum of use cases that meet various customer needs, including sensitivity for latency and analytics. According to TBR’s 1Q20 Enterprise Edge Compute Market Landscape, while the edge is not new, its use for low-latency-dependent applications and close-to-the-data computing has increased and will continue to do so to support connected devices, emerging workloads such as IoT, and faster time-to-insight. For example, in-store robots can interact with customers to create a customized shopping experience on the floor and use data around purchases to help restock inventory.

TBR predicts a rapid increase in enterprise edge spend through 2024. The dynamics within the webscale space  include a desire by managed service providers to run their offerings on bare metal hardware and ODMs with the ability to provide this bare metal hardware at lower price points than OEM peers. These dynamics will be a key driver behind the upswing in enterprise edge revenue through 2024 as webscales capture opportunities typically fulfilled by OEMs.

For additional information, read our special report Edge computing is a cross-industry revolution that will reshape every industry and contact an account executive about TBR’s Enterprise Edge Compute Market Landscape.

Edge computing is a cross-industry revolution that will reshape every industry

The edge computing market spans a spectrum of use cases that meet various customer needs, including sensitivity for latency and analytics. According to TBR’s 1Q20 Enterprise Edge Compute Market Landscape, while the edge is not new, its use for low-latency-dependent applications and close-to-the-data computing has increased and will continue to do so to support connected devices, emerging workloads such as IoT, and faster time-to-insight. For example, in-store robots can interact with customers to create a customized shopping experience on the floor and use data around purchases to help restock inventory.

TBR predicts a rapid increase in enterprise edge spend through 2024. The dynamics within the webscale space   include a desire by managed service providers to run their offerings on bare metal hardware and ODMs with the ability to provide this bare metal hardware at lower price points than OEM peers. These dynamics will be a key driver behind the upswing in enterprise edge revenue through 2024 as webscales capture opportunities typically fulfilled by OEMs.

Nearly all webscales and some telcos utilize ODM hardware, and most enterprises are expected to use OEM gear for their edge environments

ODMs have perhaps the largest opportunity at the enterprise edge. White-box hardware is of rising interest to major service providers, and the low-margin, high-volume play that ODMs embrace is an excellent fit for the enterprise edge market.

ICT hardware continuum graphic

TBR’s Enterprise Edge Compute Market Landscape, which is global in scope, details edge compute trends among vendors and their customers. Vendor coverage includes Amazon Web Services, Atos, Cisco, Dell Technologies, Digital Realty, Equinix, Hewlett Packard Enterprise, Huawei, IBM, Lenovo and Microsoft. This research includes current-year market sizing and a five-year forecast. Interested in hearing more of TBR’s analysis on the emerging and rapidly evolving opportunity in the enterprise edge market? Check out the replay of our recent webinar, The emerging and evolving landscape of enterprise edge computing.

Hardware commoditization pushes vendors into new ventures

Insights from TBR’s 2020 Data Center Predictions

Join Stephanie Long and Geoff Woollacott for a detailed analysis of where the data center market is headed in 2020. With many emerging technologies coming to market, data center vendors are investing in various emerging technologies to augment their existing portfolio and maintain relevance as legacy portfolios become commoditized.

Don’t miss:

  • How cloud versus on-premises dynamics will impact data center vendors
  • The rise of quantum services vendors
  • The emerging dynamics of ODMs and OEMs in the data center landscape

TBR webinars are held typically on Wednesdays at 1 p.m. ET and include a 15-minute Q&A session following the main presentation. Previous webinars can be viewed anytime on TBR’s Webinar Portal.

For additional information or to arrange a briefing with our analysts, please contact TBR at [email protected].

TBR 2020 Data Center Predictions: Hardware commoditization pushes vendors into new ventures

Hardware commoditization is pressuring traditional data center vendors to invest in related emerging technologies

The data center hardware market has been on a downward trend due to commoditization for years. As a result, vendors have had to get creative to maintain their financial performance. Some vendors that have not adjusted have been forced out of highly contested markets or had assets or whole organizations acquired. However, many vendors have adjusted by investing in new ventures to maintain hardware relevance. Non-volatile memory express (NVMe) and hyperconverged infrastructure are two examples of technologies that have upward potential in the declining hardware market.

Other vendors have chosen to explore entirely new areas, such as quantum computing, to maintain relevance. IBM is notorious for laying the tracks to new markets, and quantum is no exception. TBR believes IBM’s quantum computing investments might increase the longevity of the mainframe, as we see a future in which mainframes and quantum computers can work together to answer tough computational questions. IBM is also investing in high-performance computing, another technology that could fill this space for mainframes.

Change is the only thing in the data center market that is guaranteed. TBR believes 2020 will be marked by a lot of change, and vendors will either adapt or be left behind. Consumption-based pricing and quantum computing are just two examples of the types of change that are coming to the data center space, but there are many others still to come. Vendors that embrace change will be around for the long haul, and fast-followers are more and more likely to be left behind if they sacrifice research and development for quick returns for their capital investors. Vendors should encourage innovation around new ideas to maintain relevance while commoditization maintains its unrelenting grip on the data center hardware space.

2020 Predictions:

  • Cloud vs. on premises: A distinction without a difference
  • The rise of quantum services vendors
  • ODMs will progressively squeeze OEMs as cloud-centric data center environments become increasingly popular

Register for TBR’s 2020 Data Center Predictions webinar, Hardware Commoditization Pushes Vendors Into New Ventures, Jan. 15, 2020.

Technology Business Research 2020 Predictions is a special series examining market trends and business changes in key markets. Covered segments include telecom, cloud, devices & commercial IoT, data center, and services.

NFV/SDN prepares operators to support 5G-era use cases

Infographic explaining how nfv and sdnwill prepare operators to support 5G-era use casesOperators are under pressure to invest in these technologies

Operators will further adoption of virtualized network solutions by capitalizing on 5G use cases and strengthening security capabilities. Integrating NFV and SDN technologies will enable operators to more effectively support network technologies that will become prevalent in the 5G era, including network slicing and edge computing, which will play a pivotal role in supporting 5G use cases such as advanced Internet of Things (IoT). The flexibility and agility of network slicing will enable operators to remove unnecessary functionality (e.g., sunsetting a noncore service) while launching services on command. Edge computing will allow operators to support 5G use cases that require ultra-low latency, such as augmented reality (AR)/virtual reality (VR).

Operators are under pressure to invest in NFV and SDN to reduce total capex and opex spend as well as introduce new services and stay competitive as they prepare to offer 5G services and search for new network use cases. The flexibility and scalability offered by NFV and SDN is particularly appealing to operator enterprise customers, which are expanding their operations and are undergoing digital transformation initiatives such as utilizing multicloud environments, incorporating IoT solutions, and integrating digital customer service and sales portals. Software-mediated network services are enabling businesses to deploy applications and provide connectivity to new branches more quickly, which is particularly important to customers in verticals that frequently add new locations, such as retail.

The shift to software-defined network architectures is extremely disruptive to the vendor community. Incumbent network vendors are under increasing pressure to move up the network value chain, from hardware to software and software-related services. They are increasingly disrupted by the adoption of white-box hardware and the utilization of ODMs as operators search for avenues to reduce network costs. Deploying white boxes provides significant cost savings for operators as well as greater flexibility by allowing carriers to deploy the most appropriate virtual network functions for their environments without being limited by the constraints of propriety hardware. Though the ODM threat has not manifested in the telecom operator customer segment to the extent it has in the webscale segment, incumbent vendors must remain on alert and attempt to mitigate this threat. TBR believes the best course of action is for vendors to embrace the movement of value in the network from the hardware layer to the software layer. This could include embracing open-source code and layering in proprietary software to differentiate. For most incumbents, scaling quickly through acquisition is preferable.

For more information, contact Senior Analyst Michael Soper at [email protected].

Canonical’s growth play: Make customers’ and partners’ lives easier (and more economical)

TBR perspective

At Canonical’s 2018 Analyst Day, CEO Mark Shuttleworth laid out a very compelling construct for Canonical’s vision of being the link between the operating system (OS) layer and the cloud control planes. Canonical has Ubuntu OS versions to run from the largest high-performance computers with NVIDIA graphics processing units to the smallest device OSes at the heart of offers from niche vendors such as Rigado. Throughout the event, Canonical stressed multicloud interoperability through Kubernetes. The big unknown on the horizon is how to provision infrastructure for edge analytics, which sits at the heart of the strategic relationship Canonical has with Google Cloud as Google donates Borg to ensure Kubernetes does not challenge Borg the way Hadoop forked from MapReduce.

Existing virtualization economics has stalled, with premium pricing models emerging from the major and better-established competitors Red Hat (NYSE: RHT) and VMware (NYSE: VMW). The Canonical play further compresses the economics of the infrastructure abstraction and OS components, where parts will be provided for free and the services and update provisions will become the basis for the monetization model. Akin to how free Android disaggregated the device OS space and gained share against Microsoft, Canonical bets on market projections showing devices used/owned per person growing from two to three devices today to as many as 20 devices within the next five years.

It is from this vantage point that one open-source Linux distro, Canonical’s Ubuntu, was taking direct competitive aim at another (Red Hat), while likewise suggesting VMware’s time as the market maker would quickly start to fade as more and more app modernization efforts move code from virtual machines (VMs) into lightweight Kubernetes containers (clusters).

 

Canonical hosted its 2018 Analyst Day in New York City on Sept. 20, 2018. The event featured presentations from the top leadership at Canonical, including Shuttleworth, Finance Director Seb Butter, SVP of Global Data Centre Sales Jeff Lattomus, and VP of Global Sales, IoT & Devices Tom Canning. Canonical focused on business and go-to-market updates as well as key presentations by partners, such as Paul Nash from Google Cloud, outlining how Canonical has accelerated or added value to their businesses. At this year’s event, there was a noticeable blurring of the lines between cloud and IoT discussions in comparison to years past where there were more definitive tracks. Regarding both Canonical’s own strategy and its conversations with customers, it is exceedingly difficult to have a discussion about one and not the other, which is reflected in the broader IT landscape as of late.

NFV/SDN prepares operators to support 5G era use cases and helps drive network efficiencies

According to TBR’s 3Q18 NFV/SDN Telecom Market Landscape, operators will further adoption of virtualized network solutions by capitalizing on 5G use cases and strengthening security capabilities. Integrating NFV and SDN technologies will enable operators to more effectively support network technologies that will become prevalent in the 5G era, including network slicing and edge computing, which will play a pivotal role in supporting 5G use cases such as advanced Internet of Things (IoT).

Operators are under pressure to invest in NFV and SDN to reduce total capex and opex spend as well as introduce new services and stay competitive as they prepare to offer 5G services and search for new network use cases. The shift to software-defined network architectures is extremely disruptive to the vendor community.

Graph showing total NFV/SDN spend by capex and external opex for 2017 through 2022

Incumbent network vendors are under increasing pressure to move up the network value chain, from hardware to software and software-related services. They are increasingly disrupted by the adoption of white-box hardware and the utilization of ODMs as operators search for avenues to reduce network costs. Deploying white boxes provides significant cost savings for operators as well as greater flexibility by allowing carriers to deploy the most appropriate virtual network functions for their environments without being limited by the constraints of propriety hardware. Though the ODM threat has not manifested in the telecom operator customer segment to the extent it has in the webscale segment, incumbent vendors must remain on alert and attempt to mitigate this threat.

The NFV/SDN Telecom Market Landscape includes key findings, market size, customer adoption, operator positioning and strategies, geographic adoption, vendor positioning and strategies, and acquisition and alliance strategies and opportunities.

For additional information about this research or to arrange a one-on-one analyst briefing, please contact Dan Demers at +1 603.929.1166 or [email protected].