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Over the past few years, enterprises have strived to move as much as possible as quickly as possible to the public cloud to minimize CapEx and save money. In the rush to the public cloud, a lot of people didnt think about pricing, says Tracy Woo, principal analyst at Forrester. Are they truly enhancing productivity and reducing costs?
Nobody wants to waste money on cloud services. But by failing to fully address a handful of basic issues, many IT leaders squander funds on cloud services that could be used to support other important projects and initiatives especially as AI comes along to alter the cloud economics equation.
IBM Institute for Business Value (IBV), in collaboration with Oxford Economics, surveyed 2,551 global IT executives to determine how mainframes are being used and prepped for increased use in AI and hybrid cloud environments. Most enterprises have built tech estates on hybrid cloudarchitecture, the researchers stated. “In
For many organizations, while budgets are ticking slightly up, it’s only in line with inflation, while new initiatives, including AI, need to be funded.” Skills in architecture are also in high demand, as power-hungry AI systems require rethinking of data center design.
One of the most significant enablers of digital transformation is cloud computing. Strategic options for cloud adoption When it comes to cloud adoption, organizations have several strategic options to consider. Public cloud. Private cloud. Hybrid cloud. Multi-cloud.
For instance, Capital One successfully transitioned from mainframe systems to a cloud-first strategy by gradually migrating critical applications to Amazon Web Services (AWS). It adopted a microservices architecture to decouple legacy components, allowing for incremental updates without disrupting the entire system.
Enterprises are now spending about 35% of their data center CapEx budgets on accelerated servers optimized for AI, up from 15% in 2023, says DellOro analyst Baron Fung. For hyperscalers, the AI investment is even higher, as they are already spending 40% of their budgets on accelerated servers.
The complexity within IT infrastructures is increasing, as is the pressure on IT budgets to use available funds as smartly and efficiently as possible. Effective cost management in the cloud is, therefore, becoming increasingly important. In this context, more than a quarter expect cloud costs to rise by 20% or more.
405B workload compared to the companys H200 NVL8, which is based on the Hopper architecture. In the latest round of benchmarks, the three year old architecture still managed to achieve a 60% performance boost over last year on the Llama 2 70B workload. That isnt to say that Hopper is lagging.
VMware by Broadcom has unveiled a new networking architecture that it says will improve the performance and security of distributed artificial intelligence (AI) — using AI and machine learning (ML) to do so. For today’s CIO, they need to understand that AI will be the biggest disruptor to networks since the cloud,” he said. “In
With the combined challenges of tight IT budgets and scarcer technical talent, it’s becoming imperative for enterprise network pros to embrace automation of processes and the way infrastructure responds to changing network traffic.
Dave McCarthy, research vice president at IDC and one the surveys authors, points out that CIOs are still dealing with how best to manage unexpected costs in the cloud and have learned that estimating costs for new workloads is challenging without historical data.
Upgrading cloud infrastructure is critical for deploying broad AI initiatives more quickly, so that’s a key area where investments are being made this year. The numbers are higher from Foundry’s 2023 State of CIO survey , which finds that 91% of CIOs expect their tech budgets to either increase or stay the same in 2023.
Expectation of disruption Limited investment in cyber resilience remains a challenge, despite rising security budgets overall: nearly 49% of U.S.-based based IT leaders globally believe their budget for cyber resilience is inadequate. A lack of budget cannot be put down to a lack of evidence of need.
But the world shiftedapplications moved to the cloud, workers became mobile, and cybercriminals got more creative. Enter SD-WAN: cheaper than MPLS and designed for cloud-first traffic patterns. The Cafe-like Branch eliminates these inefficiencies while simplifying the network architecture. Sounds promising, right?
If you’re stressing over cloud cost increases, you’re not alone. Three out of every five organizations saw cloud spending increase in the past year, with nearly four in 10 who experienced price hikes saying their costs jumped by more than 25% — this according to a recent survey of IT professionals commissioned by cloud provider Civo.
Ongoing layoffs in the tech industry and rising demand for AI skills are contributing to a growing mismatch in the IT talent market, which continues to show mixed signals as economic factors and the rise of AI impact budgets and the long-term outlook for IT skills.
Azures growing adoption among companies leveraging cloud platforms highlights the increasing need for effective cloud resource management. Enterprises must focus on resource provisioning, automation, and monitoring to optimize cloud environments. As Azure environments grow, managing and optimizing costs becomes paramount.
After marked increase in cloud adoption through the pandemic, enterprises are facing new challenges, namely around the security, maintenance, and management of cloud infrastructure. According to the Foundry report, 78% of organizations say that, in response to cloud investments made by the organization, they have added new roles.
Today, many organizations are embracing the power of the public cloud by shifting their workloads to them. A recent study shows that 98% of IT leaders 1 have adopted a public cloud infrastructure. It is estimated by the end of 2023, 31% of organizations expect to run 75% of their workloads 2 in the cloud. 8 Complexity.
It’s no longer a question of whether organizations are moving to the cloud but rather how well it’s going. Cloud isn’t that shiny new object in the distance, full of possibility. Companies may have had highly detailed migration or execution plans, but many failed to develop a point of view on the role of cloud in the enterprise.
The reality is that the cloud is not a hammer that should be used to hit every AI nail. The cloud is great for experimentation when data sets are smaller and model complexity is light. But over time, data sets and AI models grow more complex as companies seek greater accuracy from the models.
Yet it’s rare for any business leader not to say they wish they had a better ROI from their cloud spend. This often took both budget and control away from CIOs. Design cloud approaches automatically scale up and down based on demand. With more experience under their belts, these teams are embarking on what they call “cloud 2.0”
Today’s cloud strategies revolve around two distinct poles: the “lift and shift” approach, in which applications and associated data are moved to the cloud without being redesigned; and the “cloud-first” approach, in which applications are developed or redesigned specifically for the cloud.
Cloud costs remain a key concern for IT leaders, who find themselves nearing a crossroads where expenditures for core workloads will need containment to free up spend for innovation. 1 barrier to moving forward in the cloud. Cloud costs continue to be a top concern for CIOs,” says Dave McCarthy, analyst at IDC.
The cloud has changed the IT and business worlds forever, and generally for the better. But when misused or abused the cloud can backfire, leading to a serious business setback or, in a worst-case situation, long-term competitive damage. Ensuing proper cloud use is essential in today’s high-stakes, fast-paced business environment.
Network as a service (NaaS) is a cloud service model thats designed to let enterprise IT professionals order network infrastructure components from a menu of options, have them configured to fit their business needs, and have the whole thing delivered, running and managed in a matter of hours instead of weeks.
This new hardware offering aims to address the increasing demands of modern computing infrastructures, particularly in the realms of cloud computing and artificial intelligence. Sharma added that hyperscale architecture is typically based on Layer-3 features and BGP.
In the ever-evolving landscape of cloud computing, today’s leading enterprises are seeking ways to optimize their operations and enhance their security measures. Cloud costs and security are two critical aspects that every organization must carefully manage, and they are more closely intertwined than you might think.
of IT budgets by 2027. This change affects the entire IT architectural stack and impacts everything youre currently doing from business transformation to digital transformation and more. Todays challenge is perhaps far greater. You cant just move to a single vendor as in the ERP days or develop policies just for physical devices.
But modernization projects are pushing ahead: In the same PWC survey, 81% of CIOs said they prioritized cloud-based architecture as a positive and tangible step forward to improve readiness to handle future challenges. The question that remains is, can this be done with the funding available in 2025?
AI services require high resources like CPU/GPU and memory and hence cloud providers like Amazon AWS, Microsoft Azure and Google Cloud provide many AI services including features for genAI. This includes proactive budgeting, regular financial reviews and the implementation of cost allocation policies that ensure accountability.
CIOs were given significant budgets to improve productivity, cost savings, and competitive advantages with gen AI. A third area of shifting debate concerns infrastructure between data centers, public clouds, hybrid clouds, multicloud, and edge computing. Should CIOs bring AI to the data or bring data to the AI?
Liberty Mutual is one of the most experienced and advanced cloud adopters in the nation. And that is in no small part thanks to the vision of James McGlennon, who in his role as CIO of Liberty Mutual for past 17 years has led the charge to the cloud, analytics, and AI with a budget north of $2 billion.
This conundrum is what motivated Tomago to migrate its ERP system to the cloud back in 2015. Describing their existing systems as “burning platforms,” he says that migrating to the cloud was essentially their only option. We walked into a partner-managed cloud environment,” he says. “We
It feels like just yesterday that we were promised that cloud servers cost just pennies. When the monthly cloud bill arrives, CFOs are hitting the roof. Cloud cost managers are the solution. Smaller teams with simple configurations can probably get by with the stock services of the cloud companies.
At the moment,tech implementation at Guzmn Minerals is carried out through a series of interconnected platforms that guarantee a real-time flow of data.Our cloud infrastructure acts as a backbone, allowing for centralized and secure management, says Sabater. To achieve this, Guzmn has a considerable annual IT budget, explains Sabater.
As enterprise CIOs seek to find the ideal balance between the cloud and on-prem for their IT workloads, they may find themselves dealing with surprises they did not anticipate — ones where the promise of the cloud, and cloud vendors, fall short versus the realities of enterprise IT. That’s where the contract comes into play.
Let us take a look at some companies that have risen to the occasion and leveraged this crisis situation to rethink organizational architecture and embark upon network orchestration. . With commodity prices being halved, Chevron like many of its peers in the energy space saw a consequent lowering in capital budgets.
Migrating infrastructure and applications to the cloud is never straightforward, and managing ongoing costs can be equally complicated. No IT organization wants to get caught short on processing or storage resources that could negatively affect operations, or have to suddenly add resources that exceed the budget.
A related concept, CloudOps, for “cloud operations,” has emerged as enterprises increasingly move application development and workloads to the cloud, and those cloud outlays become more complex. CloudOps: A multilayered framework for cloud operations.
Re-platforming to reduce friction Marsh McLennan had been running several strategic data centers globally, with some workloads on the cloud that had sprung up organically. He initially turned down the CIO job but was persuaded to take it up by the prospects of leading Marsh McLennan on this digital journey.
What would you say is the one call most people would change when it comes to their architecture? All architecture is wrong, because everything we’ve done has changed and grown over time. I think back to the first big architecture I worked on, and boy, you would not do that today. We just don’t know it yet.
Allegis had been using Eclipse for 10 years, when the system was acquired by Epicor, and Allegis began exploring migrating to a cloud-based ERP system. We really liked [NetSuite’s] architecture and that it’s in the cloud, and it hit the vast majority of our business requirements,” Shannon notes.
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