Rackspace, a leading provider of managed services to enterprise businesses, reported earnings on February 17, 2015. Some remarks from its CEO, Taylor Rhodes, point to what maybe a promising indicator of enterprise business moving towards increased use of cloud IaaS, PaaS, and SaaS services. Microsoft also previewed the coming release of an Active Directory tool, which should ease the difficulty of synchronizing on-premises AD and Azure cloud AD.
Rhodes’ remarks were quoted in an interview titled Rackspace CEO Rhodes: Price Cut Curve is Flattening Out. The interview was published on the Barrons web site and was conducted by Tiernan Ray.
The heartening indicators for anyone looking for signs of more movement by enterprise business communities of computing users towards cloud offers amounted to:
- “The mainstream market has two problems: They have legacy apps that won’t go multi-tenant automatically; they want single-tenant versions along the way; and the second problem they have is this skills set gap. Cheap infrastructure is just pouring gas on the fire. There is a need for software and tools development. Companies are saying, I don’t have access to people who know how to run all those things”
- and Ray’s summary of some other comments appears to have made during the interview: ” . . . the company [sees] more and more deals of $100,000 or more, some of it coming from competitors such as the telcos; rising organic revenue growth (it was 16.4% last quarter, excluding currency effects); and rising operating profit margin.”
The type of enterprise software Rhodes calls “legacy apps”, in my opinion includes the “customizations” of big server applications like SharePoint, which Microsoft has found so difficult for its customers to work with as they consider migrating some on-premises processes to the cloud. The recommended methods of dealing with palpable inconsistencies between what can be accomplished with these processes, on-premises, vs the same for cloud, whether via SharePoint Online/Office 365, or Azure IaaS/PaaS/SaaS, have been reduced from tightly woven “hybrid computing” to today’s “hybrid scenarios”, where almost wholly separate processes run locally and remotely, but in service to the same communities of users.
So Rhodes’ remarks about how Rackspace has captured some of this headache as tangible business and, even better, big ticket business (presumably with attractive margin) is a heartening note and, perhaps an indicator of better news to come.
The second breathe of fresh air on this challenge is to be found in a post to the RedmondMag website authored by Kurt Mackie. The post is titled Upcoming Perks of Azure Active Directory Connect Tool.
Anyone familiar with the kind of hybrid cloud computing requirements detailed by Microsoft SharePoint MVP Fabian Williams in a video tutorial set from VisualSP™ titled SharePoint 2013: Hybrid Cloud should understand the critical role Active Directory must play in any serious attempt to bolt a cloud component like Office 365 or some service, infrastructure or even platform running on Microsoft’s Azure cloud. The tool is certainly promising. Should the results produce a reliable directory of users for on-premises and cloud computing venues, increased enterprise adoption of the cloud component should become more of a realistic expectation for stakeholders.
Ira Michael Blonder
© IMB Enterprises, Inc. & Ira Michael Blonder, 2015 All Rights Reserved