Companies Adopting Hybrid Cloud To Solve Their Legacy Issues

DSA was invited to the brand new Red Hat office for their Business Update Media Briefing at The Gardens, Mid Valley City, Kuala Lumpur. On hand at the briefing was Damien Wong, Vice President and General Manager, Red Hat Southeast Asia, Taiwan and Hong Kong as well as newly appointed General Manager for Red Hat ASEAN, Wee Luen Chia.

Damien shared that their move to the new office was a testament to both their growth as a company and also their commitment to the region. To both points, the results of their fourth quarter fiscal year ended February 2018, clearly showed it to be true with total revenue up 23% y/y.

Kicking off the session, Damien shares that over 90% of the fortune 500 companies today rely on Red Hat. With 12,000 employees worldwide in 95 offices in 35 countries, they are a fast-growing company in the open source space and are looking to become a go-to vendor for the needs of the enterprise as they embrace the digital era and Industry 4.0.

“OpenShift and OpenStack were some of our fastest growing products within the Red Hat portfolio. OpenShift being our container platform that supports DevOps initiatives which are critical for companies wanting to drive digital innovation information. And OpenStack being a cloud infrastructure platform that allows companies who want to leverage the value proposition and the benefits of cloud in their own environment. It continues to be very robust and also from an industry leadership standpoint, telecommunications companies are also seeing it as a basis to support 5G moving forward,” he shared adding that companies are beginning to accept the reality of hybrid cloud as a way to grow their business.

A survey of Red Hat’s global customers showed that their top three priorities were to develop a cloud strategy, build new applications quickly and finally, optimising and modernising their existing IT.

“Most people have ageing legacy environments and they need to be able to modernise it, so it can be used for their business today. Also, it is expensive to run legacy environments.”

He shared that CIOs are looking at these technologies as a way to balance innovation optimisation. They have to run their organisation with existing costs and existing business. The only way to free up money and resources to drive innovation is to optimise the IT that they have today.

“Save money in your existing IT and that money can be freed up to do things which are more innovative. The innovation is what helps you compete. And being able to improve productivity by integrating the application data and the processes, and bringing in middleware capabilities, innovation platforms and so on.”

This means the organisation will have their own centres with their own computing infrastructure. But it is also important to have agility.

“If you roll out a new marketing system, or if you want to roll out a new promotion, and it requires an app to be rolled out quickly, the ability to do this using cloud infrastructure has become a critical strategic advantage for many. The agility you can have by adding cloud infrastructure to your portfolio is very important,” he added.

Companies are taking this approach, he adds, because it cuts out building more servers and adding data centre space where in most cases it is not possible as data centres are already at their maximum capacities.

“Instead of sizing for peak capacity, you size for what you think is a steady state and burst to the public cloud and therefore have that ability to scale up and scale down when required.”

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