Enterprises will continue to rely on on-premises cloud environments for a while to come, according to research firm ESG.

Kelly Teal, Contributing Editor

September 18, 2019

4 Min Read
Hybrid clouds

Managed service providers and value-added resellers offering hybrid cloud services may find themselves in a bind as their clients require more computing power tied to artificial intelligence, the internet of things and other high-demand workloads.

Replacing hardware every couple of years takes a toll on budgets. And as hybrid cloud remains a go-to option for enterprises, MSPs and VARs can expect the situation to remain relatively unchanged. Mark Bowker, senior analyst for research firm Enterprise Strategy Group, noted in a recent blog that most organizations still see on-premise cloud as important, and the situation is not changing anytime soon.


ESG’s Mark Bowker

“In fact, nearly nine of 10 organizations expect to have a significant (35%) or measurable (54%) on-premises environments in three years,” he wrote.

Channel partners have to plan for more intensive client computing needs accordingly — and ScaleMatrix, a provider of colocation facilities, is proffering a solution.

The vendor has launched an enhanced version of its ScaleCloud platform and added what it calls a “hardware age guarantee.” This features ensures sustained performance and compatibility as cloud applications require more resources. ScaleMatrix says it will refresh equipment every two years.

“Processor age is an important aspect of architecting a cloud solution at this level of computing,” said Chris Orlando, CEO of ScaleMatrix. “In addition to the inevitable physics of processor performance degrading over time, as cutting-edge applications emerge, the age of processors and other hardware in cloud environments is often incompatible with the latest applications, leaving organizations pushing the cutting edge in a lurch.”


ScaleMatrix’s Chris Orlando

Orlando added that ScaleMatrix’s guarantee also will address environmental concerns by using less energy. For MSPs and VARs offering branded or white-label cloud and hosting services to with eco-conscious clients, this could prove pivotal.

“Ultimately what this means is that there is a resource for the fastest, most efficient CPU-based AI, IoT and [high-performance computing] that can scale virtually infinitely without headache or hassle that MSPs can tap into,” Brent Beverly, COO of ScaleMatrix, told Channel Futures.

The hardware age guarantee eliminates the hassle of constantly upgrading cloud deployments and/or partners, Beverly said. MSPs and VARs can rest assured knowing the applications on the ScaleCloud enterprise tier will always run on the latest performance gear, without the need for virtual machine or container migrations or upgrades, he added.

ScaleMatrix said it does not require any particular contract timelines for the ScaleCloud enterprise tier.

Channel Futures sought to gather partner reaction to the ScaleMatrix announcement but Beverly said MSPs and VARs still are migrating to the new ScaleCloud platform, so there was little to share by the time this article published.


ScaleMatrix’s Brent Beverly

ScaleMatrix said it designed ScaleCloud Enterprise to accommodate demanding workloads while also providing “green” options. The platform allows for customization and control, and comes with multiple support profiles and billing models, ScaleMatrix said.

ScaleMatrix operates data centers in San Diego; Charlotte, N.C.; and Seattle, and soon will open locations in Jacksonville, Florida; and Dallas.

Meantime, even though hybrid cloud configurations remain popular among end users, ESG’s Bowker cautioned that public cloud is making enough inroads that IT pros need to pay attention. MSPs and VARs will want to heed that advice as they guide customer deployments.

Almost three-quarters of organizations responding to an ESG survey said it was critical or very important that public cloud service providers offer solutions that integrate with their on-premises environments.

And, as Bowker pointed out, public cloud vendors are complying.

“Microsoft partners with traditional hardware OEMs to land Azure Stack integrated systems on-prem. AWS drives a semi-trailer truck into the parking lot for exabyte-scale data transfer and is backing the bus up to drop off Outposts into the on-prem data center. On the other hand, Google is standing out as the only vendor among the hyperscalers to beat the drum on multicloud support with Anthos, which is focused on container management.”

Overall, Bowker wrote, “The on/off-prem workload is in an unbalanced state while the center of gravity shifts toward public cloud consumption.”

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About the Author(s)

Kelly Teal

Contributing Editor, Channel Futures

Kelly Teal has more than 20 years’ experience as a journalist, editor and analyst, with longtime expertise in the indirect channel. She worked on the Channel Partners magazine staff for 11 years. Kelly now is principal of Kreativ Energy LLC.

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