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The Critical Role of Data Services for Hybrid Cloud in the Age of Digital Transformation

By IDC


Digital Transformation and Cloud

We are fast approaching a new era of the data age. IDC forecasts that by 2025, the global “datasphere” will grow to 163 zettabytes. All this data will unlock unique user experiences and a new world of business opportunities. According to consulting firm Innosight, the average lifespan of companies on the S&P 500 index in the era of the 3rd Platform (cloud, social, mobile and big data) is 18 years. Compare this longevity to the lifespan of 61 years during the 1st platform era (mainframes). Moreover, 75% of the S&P 500 will be replaced by 2027. Digital disruption is real. To survive, companies must embrace and accelerate digital transformation (DX).

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TAXONOMY
IDC's Worldwide Data Services for Hybrid Cloud Taxonomy, 2017

MARKET FORECAST
Worldwide Data Services for Hybrid Cloud Forecast, 2017–2021

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DX is a set of practices that leverage data combined with new business, technology, and operating models to disrupt businesses, customers, and markets in pursuit of business performance and growth. DX business objectives can include enhanced revenue, time to market, customer satisfaction, and operational efficiency. Even small digital initiatives can have remarkable impact. Consider the convenience of the the Starbucks mobile app which allows customers to preorder online and later pick up their order at the store. This application now contributes 20% of overall Starbucks revenue.

Starbucks and firms of all sizes are discovering that the agility, flexibility and power of cloud computing are indispensable in achieving their DX business objectives. For most organizations, this inevitably leads to hybrid IT where data is generated and stored across a combination of on-premises, private and public cloud resources. This hybrid reality causes a new set of data management challenges

The Data Challenge

The proliferation of application deployment models and data formats across hybrid IT has resulted in organizational data being widely and unpredictably spread across multiple repositories. This creates numerous and increasing challenges for IT staff that range from knowing what data is where, to performance and reliability issues in protecting and integrating data, to securing and ensuring compliance, to employing labor intensive processes for optimized data placement. Today, most organizations purchase and manage overlapping tools to address these unique challenges. Integrating information from these disparate tools may be either time-consuming or impossible. In summary, organizations are not efficiently managing and deriving value from the totality of their data.

Solution: Data Services for Hybrid Cloud

To address these data challenges, gain competitive edge and thrive in the DX era, organizations need to adopt data services for hybrid cloud. Data services for hybrid cloud is location- and infrastructure-independent software that understands and performs various protection, security, integration, and optimization functions on data for the purposes of agile and economic data management and faster time to insights. These functions can be performed in place or following data movement.

A New Taxonomy

IDC has developed a taxonomy for data services for hybrid cloud to assist IT organizations in developing a structure around the concepts of hybrid cloud data services. This taxonomy also articulates how the various components interrelate to form a common data management platform. In addition, this taxonomy defines a competitive market rather than a functional market. As such, we do not expect any product or company to fulfill all elements. Rather, it is a combination of products, specific features/functionalities of products, and markets that add up to the totality of the taxonomy. IDC recently published its inaugural forecast for the total competitive market value and growth. The empirical data used to build the market model is derived from IDC's software tracker. We invite you to download the full report, IDC's Worldwide Data Services for Hybrid Cloud Taxonomy, 2017, and the inaugural forecast Worldwide Data Services for Hybrid Cloud Forecast, 2017-2021. Both of these reports are available on the NetApp website.