By Patrick McFadin, DataStax

When the gap between enterprise software development and IT operations was bridged 15 or so years ago, building enterprise apps underwent a radical change. DevOps blew away manual and slow processes, and adopted the idea of infrastructure as code. This was a change that upped the ability to scale quickly and deliver reliable applications and services into production.

Building services internally has been the status quo for a long time, but in a cloud-native world, the lines behind cloud and on-prem have blurred. Third-party, cloud-based services, built on powerful open source software, are making it easier for developers to move faster. Their mandate is to focus on building with innovation and speed to compete in hyper-fast markets. For all application stakeholders—from the CIO to development teams—the path to simplicity, speed, and risk reduction often involves cloud-based services that make data scalable and available instantly.

These points of view aren’t far apart, and they exist at many established organizations that we work with. Yet they can be at odds with one another. In fact, we’ve often seen them work in ways that are counterproductive, to the extent that they slow down application development.

There might be compelling reasons for taking everything in-house but the end users are voting with execution. Here, we’ll look at the point of view of each group, and try to understand each one’s motivations. It’s not a zero-sum game and the real answer might be the right combination of the two.

Building services

Infrastructure engineers build the machine. They are the ones who stay up late, tend to the ailing infrastructure, and keep the lights on in the company. Adam Jacob (the co-founder and former CTO of Chef Software) famously said, “It’s the job of ops people to keep the shit-tastic code of developers out of your beautiful production infrastructure.” If you want to bring your project or product into the sacred grounds of what they’ve built, it has to be worthy. Infrastructure engineers will evaluate, test, and bestow their blessing only after they believe it themselves.

Tenets of the infrastructure engineer include the following:

Every deployment is different and requires qualified infrastructure engineers to ensure success.Applications are built on requirements, and infrastructure engineers deliver the right product to fit the criteria.The most cost-effective way to use the cloud is to do it ourselves.

What infrastructure engineers care about

Documentation and training

Having a clear understanding of every aspect of infrastructure is key to making it work well, so thorough and clear documentation is a must. It also has to be up to date; as new versions of products are released, documentation should bring everyone up to speed on what’s changed.

Version numbers

Products need to be tested and validated before going into production, so infrastructure teams track which versions are blessed for production; updates must be tested too. A critical part of testing is security, and we are generally behind the latest cutting edge, so we have the most stability and security.

Performance

Performance is critical, too. Our teams have to understand how the system works in various environments to plan adequate capacity. Systems with highly variable performance characteristics – or those that don’t meet the minimum – will never get deployed. New products must prove themselves in a trial by combat before even being considered.

Using services

Installing and running infrastructure is friction when building applications. Nothing is more important than the speed of putting an application into production. Operational teams love the nuances of how things work and take pride in running a well-oiled machine, but developers don’t have months to wait for that to happen. Winning against competitors means renting what’s needed, when it’s needed. Give us an API and a key, and let us run.   .

When it comes to infrastructure, developer tenets include:

Infrastructure has to conform to the app and not the other way aroundDon’t invent new infrastructure—just combine what’s availableConsume compute, network and storage like any other utility

Things service consumers care about

Does it fit what I need, and can I verify that quickly?

The app is the center of the developer’s universe, and what it needs is the requirement. If the service being considered meets the criteria, this needs to be verified quickly. If a lot of time is spent bending and twisting an app to make a service work, developers will just look for a different service that works better.

Cost

Developers want the lowest cost for what they get. Nothing so complicated that a spreadsheet is required. With services, developers don’t necessarily believe in “you get what you pay for,” with more expensive being better. Instead, they expect the cost to decrease over time from a service provider finding efficiencies. 

Availability

Developers expect a service to always work, and when it doesn’t, they get annoyed (like when the electricity goes out). Even if there is an SLA, most probably won’t read it—and will expect 100% uptime. When building my app, I assume there will be no downtime.

In the end, the app matters most

From working with a lot of organizations for whom applications are mission-critical, we’ve often seen that these two groups don’t work particularly well together—at times, their respective approaches can even be counterproductive. This friction can slow application production significantly, and even hamper an organization’s journey to the cloud.

This friction can manifest itself in several ways. For instance, a reliance on home-grown infrastructure can limit the ways that developers access the data required to build applications. This can limit innovation and introduce complexity to the development process.

And sometimes balancing cloud services with purpose-built solutions can actually create complexities and increase costs by watering down expected savings from moving to the cloud.

Application development and delivery is cost sensitive, but it requires speed and efficiency. Anything that gets in the way can lead to a dulled competitive edge, and even lost revenue.

Yet we also know of organizations that have intelligently combined the efforts of infrastructure engineers, who run your mission-critical apps today, and those who use services to build them. When the perspective and skills of each group is put to good use, flexibility, cost-efficiency, and speed can result.

Many successful organizations today are implementing a hybrid of the two (for now): some bespoke infrastructure mixed with services rented from a provider. Several organizations are leveraging Kubernetes in this quest for the grand unified theory of infrastructure. When describing a deployment model, there are blocks that create pods and service endpoints, with  other blocks that describe endpoints on a pay-per-use method. If you are using any cloud with Kubernetes, think storage and network services.

There are other important elements to an organization’s universe of services — whether they’re built or bought. Standard APIs are the de facto method of serving data to applications — and reduce time to market by simplifying development. SLAs — customer and internal alike — also clearly delineate scale and other performance expectations — so developers don’t have to.

Finally, I should point out that this is an immediate challenge in the world of open source data where I live. I work with Apache Cassandra®—software you can download and deploy in your own datacenter for free; free as in beer and free as in freedom. I also work on the K8ssandra project, which helps builders provide Cassandra as a service for their customers using Kubernetes. And DataStax, the company I work for, offers Astra DB built on Cassandra, which is a simple service for developers with no operations needed. I understand the various points of view—and I’m glad there’s a choice.

Learn more about DataStax here.

About Patrick McFadin:

DataStax

Patrick is the co-author of the O’Reilly book “Managing Cloud Native Data on Kubernetes.” He works at DataStax in developer relations and as a contributor to the Apache Cassandra project. Previously he has worked as an engineering and architecture lead for various internet companies.

IT Leadership

As one of the largest IT service providers in the world, TCS produces and depends on a massive amount of data to conduct and grow its business. But like many enterprises, its data practices made it difficult to derive timely, actionable insights from ever-increasing volumes of data, preventing the Mumbai-based multinational from becoming a truly data-driven business.

Specifically, TCS faced three major issues in dealing with its siloed data. First, there was the lack of customized reporting and the need to rely on application teams to develop those reports. Then there was the lack of a centralized, secure data management platform, with disparate data from various sources needing to be consolidated and validated, leading to high turnaround times and data quality issues. And third, without a central data platform, TCS was challenged to make use of AI-powered insights in helping business users run their operations efficiently and effectively[YS1] . 

“The company was unable to derive actionable insights from soaring volumes of data as it grappled with traditional information architecture supporting data silos, which are difficult to interpret, thereby leading to extended cycle times of data retrieval,” says Abhijit Mazumder, CIO of TCS, adding that a lack of data visualization interfaces further complicated the process of data-driven decision making for the IT services provider, which employs nearly half a million consultants across 46 countries.

Leveraging the power of platform

Confronted with these challenges, Mazumdar and TCS set about developing a self-service data analytics platform that could act as a single source of truth for data generated in its internal IT ecosystem, a project that has earned TCS a CIO 100 US Award for innovation and IT leadership.

The mandate for the platform was clear: It had to empower business users to identify patterns, detect anomalies, and glean tangible insights from the vast volumes of complex datasets at their disposal; provide centralized data for regulating and controlling data access and interaction at all levels; provide intuitive visualization platforms to facilitate customized interpretations of data that would help foster faster, informed decision-making; and reduce dependence on IT to help make TCS more agile in acting on its data.

“We built the solution on the fundamental principle that data has shape, color, and texture. The aim was to enable users to understand hidden patterns and insights in data, effortlessly and quickly,” says Mazumder.

To realize the solution, TCS IT had to develop a new information architecture, Mazumdar says, one that could provide consistent, reliable, near real-time data across all user roles. The architecture includes a common central data integration layer that serves all the analytics needs of the organization across business functions. It also relies on data marts to enable business functions to harness the power of self-service analytics capabilities. A multi-layered security solution was also designed to secure access to data based on role access and digital rights management systems.

To help business users make informed and timely decisions, self-service business intelligence with simple drag-and-drop features was built into the platform. This enabled users to create their own visualizations without scripting needing to be provided. There were also out-of-the-box interactive visualizations and enterprise dashboards that instantly respond to interactions and changes in context providing intuitive intelligence.

The platform also facilitated TCS making use of machine learning and AI. The former replaced manual activity for custom report generation, while the latter drove a conversational analytics experience to leadership, based on natural language queries, thereby providing a faster, easier way to ask questions, get insights, and make data-driven decisions.

“The storytelling feature of the platform provides multiple points of view with ability to dive back into source analysis at any point. It combines the narrative capabilities with data visualizations to deliver compelling and easily understandable insights. Besides, natural language queries with smart search helped to navigate complex information to accelerate data discovery,” says Mazumder.

Over 700 dashboards were deployed for use across 70 departments, with secure access ensured for 20,000 users across multiple geographies to enable data availability for business anytime anywhere. Moreover, the system now enables TCS business users to access data insights in near real-time, the CIO says.

“The solution enables interactive visualizations and enterprise dashboards that instantly respond to interactions and changes in context providing intuitive intelligence,” says Mazumder.

The cloud-based solution, which took nearly a year to build starting in 2020, relied heavily on the work of a centralized, highly skilled team of 30 people, who implemented the common data fabric and visual analytics framework, performed the necessary data modelling, and established governance guidelines and policies. Various data integration, data modelling, visual analytics, business intelligence, and data analytics tools were evaluated and selected for inclusion in the project based on flexibility, scalability, pricing, and several other factors keeping overall benefits in mind, Mazumder says.

The data-driven advantage

In addition to driving data insights, Mazumdar says the centralized data architecture has greatly reduced resource utilization, cutting down data load times and data storage requirements by around 90%.

“There has been 85% reduction in projects with delivery risks because of proactive tracking enabled with interactive dashboards. The advanced use of analytics helped in tracking over 25,000 projects during remote way of working being practiced during the COVID-19 outbreak,” says Mazumder.

“There has been a reduction of turnaround time for delivery of analytics requirements by 50% compared to the earlier processes. It also improved productivity and enabled smart, quick decision-making across the organization with near real-time data analytics,” he says.

The in-house project has also helped the IT services provider streamline its IT operations. “With this new solution, TCS has been reducing enterprise technical debt by consolidating and retiring legacy platforms to the next-generation advanced analytics platforms,” says Mazumder.

But the biggest takeaway is how the homegrown self-service analytics platform has impacted business operations.

“The enabling of analytics- and insights-driven enterprise are creating new business opportunities to drive superior business performance by empowering [business users across the organization] with rapid and actional insights,” says Mazumder.

Business Intelligence and Analytics Software

Dilip Venkatachari, Global Chief Information and Technology Officer at U.S. Bank, joins host Maryfran Johnson for this CIO Leadership Live interview, jointly produced by CIO.com and the CIO Executive Council. They discuss the explosive growth in digital services, mapping new customer journeys, critical upskilling needs and more.

Watch this episode:

Listen to this episode:

Careers, CIO, CIO Leadership Live

The move to digital business has wrought profound changes in certain industries, and financial services is one of them.  Not only are traditional financial services companies using data and technology to change the game, a plethora of “FinTech” startups are using digital products to dislodge traditional players.  This podcast features Peter Ku. Vice President, Chief Industry Strategist for financial services for Informatica.  He shares his insight, expertise, and experiences in helping financial services firm become data-driven.

Financial services firms are quickly moving to deploying a “data platform” that is the foundation for identifying ways to improve processes and allows them to address new opportunities.  The data platform supports several critical initiatives in this industry:

Support for new product development by using data to identify opportunities where current services aren’t available or are unattractive to customers.Improving the customer experience with more relevant content and personalized experiences based on information about that customer’s activities.Improve risk, governance, and compliance with a comprehensive view of data contained in processes and interactions so it can be secured and protected to meet these regimes.

The use of a data platforms to drive new product offers and address customer needs is already beginning.  Perhaps the most visible of these efforts is in personal auto insurance.  Drivers can choose coverages based on price or needs.  The ability to “personalize” their policy and fit it into their household budget has changed the industry.

As financial services firms build their data platform, they will use it to innovate and build new competitive advantage.  Informatica is enabling this trend with their Intelligent Data Management Cloud, an end-to-end data management platform that enables financial services firms to bring together data from many sources or apps to gain the insights that lead to business success.

The Intelligent Data Management Cloud is an essential tool for making data “fit for business use” in financial services.  For more information on how you can create data assets that drive business success, look at: https://www.informatica.com/solutions/industry-solutions/financial-services.html

Data Architecture, Financial Services Industry

Google on Tuesday said it was updating its AI agent-based technology to add an enterprise-scale translation service, and to further automate document processing.  

The services, announced at the Google Cloud Next conference, are being delivered via a new AI-based translation service called Translation Hub, and two new features in Google’s Document AI offering.

The Translation Hub, according to the company, is an AI agent-based service that offers self-service document translation with support for 135 languages.

To translate documents, the service uses a combination of Google technologies such as neural machine translation and AutoML, the company said.  Translation Hub will support Google Docs, Slides, PDFs and Microsoft Word documents.

“It not only preserves layouts and formatting, but also provides granular management controls such as support for post-editing human-in-the-loop feedback and document review,” June Yang, vice president of cloud AI and industry solutions at Google, wrote in a blog post.

Using Translation Hub, enterprises can share their translated findings across the world in a cost-effective manner, Yang added.

At Google I/O this year, the technology giant had announced the addition of 24 new languages to Google Translate.

AI agent to automate document processing

To make document processing easier for enterprises, Google has added two new features to its Document AI service, which was first made available in April last year, designed to allow enterprises to parse documents efficiently and drive data towards the right employee within the enterprise.

Document AI also includes a human-in-the-loop (HITL) workflows to ensure accuracy when needed.

The two new features include Document AI Workbench and Document AI Warehouse.

The Document AI Workbench, according to the company, allows enterprises to custom select the fields of interest while parsing a document.

“Relative to more traditional development approaches, it (Document AI Workbench) requires less training data and offers a simple interface for both labelling data and one-click model training,” Yang wrote.

The Document AI Warehouse feature brings Google’s search technologies to Google Document AI, the company said, adding that the feature is expected to make it easy to search and manage documents including their workflows within the enterprise.

Document AI competes with services such as Amazon Textract and Microsoft Azure Form Recognizer.

Artificial Intelligence, Cloud Computing, Document Management Systems

Kyndryl claims to be the world’s largest IT infrastructure provider. A division of IBM until November 2021, it is now a separate company. Initially, little changed for customers — except perhaps the logo on their invoice — but with time, Kyndryl is taking advantage of its freedom from IBM to introduce new services and work with new partners.

What does Kyndryl do?

Essentially, Kyndryl does exactly what the managed infrastructure services unit of IBM’s Global Technology Services segment did: outsource the management of enterprises’ IT infrastructure, whether it came from IBM or another vendor.

Under IBM’s stewardship, the activities since moved to Kyndryl were in slow decline, from $21.8 billion in annual revenue in 2018 down 7% to $20.28 billion in 2019, and down 4.6% to $19.35 billion in 2020, according to IBM filings with the SEC. That hasn’t changed since the split: Kyndryl’s first full-year filing as an independent company, barely two months after the separation, showed 2021 revenue down a further 4%, to $18.66 billion. The decline continued into 2022, with first quarter revenue down 7% year on year, and the second quarter down 10%.

However, Kyndryl is beginning to develop new services, and is forming partnerships in a bid to grow its revenue. It estimates that the $415 billion market opportunity it addresses is growing at 7% a year, with some areas it is targeting (including security, intelligent automation and public cloud managed services) growing even faster.

Kyndryl has organized itself into six global managed services practices, each of which manages a different aspect of technology. These are:

Applications, data and AI
Cloud
Core enterprise and zCloud, IBM’s mainframe-as-a-service offering
Digital workplace
Network and edge
Security and resiliency

There is also a customer advisory practice that combines managed services, advisory services, and implantation.

In September 2022, Kyndryl also launched two new branded services, Bridge and Vital. The company calls Kyndryl Bridge an open integration platform, an operational monitoring system, somewhat like HPE GreenLake or IBM vCenter, that Kyndryl staff will connect to an enterprise’s existing IT infrastructure to help CIOs keep ahead of problems. Kyndryl Vital is essentially a design workshop, during which Kyndryl consultants work alongside an enterprise’s employees to prototype applications.

Who are Kyndryl’s partners?

At the moment of their split, Kyndryl and IBM were one another’s biggest suppliers, and that will remain true for the time being. But Kyndryl is free to independently explore, with no preference for IBM’s software and services.

Kyndryl named Microsoft its first cloud infrastructure partner in November 2021, announcing a similar partnership with Google the following month. But it took it until February 2022 to form a pact with Amazon Web Services.

IBM had partnerships with numerous software providers, and Kyndryl inherited or expanded some of those, including with Elastic, Lenovo, SAP, ServiceNow, and VMware.

Kyndryl has also formed new partnerships, including with Cisco Systems, Citrix, Cloudera, Dynatrace, EY, Field Safe Solutions, NetApp, Nokia, Oracle, Pure Storage, IBM subsidiary Red Hat, and Veritas Technologies. These partnerships expand Kyndryl’s repertoire when it comes to integrating products and services into Bridge, or incorporating them into co-creations with Vital.

How big is Kyndryl?

Kyndryl started with 4,600 customers (including 75 of the Fortune 100), over a quarter of IBM’s 350,000 staff, activities generating around $19 billion in annual revenue and an order backlog (or long-term maintenance contracts from all those customers) of around $62 billion. Where that puts Kyndryl in the rankings depends on what you’re measuring. Kyndryl says it’s the world’s largest IT infrastructure provider, although IT channel publication CRN says it’s only the fifth-largest solutions provider, a much broader category, behind Accenture, what’s left of IBM, DXC Technology, and Tata Consulting Services.

Is Kyndryl hiring?

Like crazy! Kyndryl hired over a dozen top executives in 2021, and by the end of the year had 88,683 employees. Although its hiring in the US has slowed, it had 1,141 lower-level job openings posted at press time, over half of them in the EU, with other significant concentrations in India and Japan. Half the openings are for technical specialists, with more than 100 openings in systems architecture and an emphasis on automation.

Who works at Kyndryl?

Most staff at Kyndryl simply changed email addresses, carrying on doing the same work for clients as they did at IBM before the split. Indeed, Kyndryl went out of its way to reassure customers that their key points of contact and support, and the other team members they work with, would not change, and that the company continues to work with experts in other divisions of IBM as it did before.

But the company brought in new blood for many of the most senior roles, either hiring in from other companies, or poaching from other divisions of IBM. CEO Martin Schroeter is ex-IBM, in fact. He left the company in June 2020, before the spin-off was announced, and came back to lead Kyndryl, then known as NewCo, in January 2021. He was previously SVP of global markets at IBM, and before that its CFO.

The next senior appointments, in March 2021, were chief marketing officer Maria Bartolome Winans, who came to the spin-off directly from her role as CMO for IBM Americas, and group president Elly Keinan, another former IBMer who took time out to work in venture capital after 33 years at the company.

Global head of corporate affairs Una Pulizzi was also a new hire in April 2021, previously in a similar role at GE, while general counsel Edward Sebold was chief legal officer for IBM’s Watson Health division.

Poaching of more senior IBMers continued in early May 2021. Chief transformation officer Nelly Akoth was previously with IBM Global Business Services; Leigh Price moved from one leadership role in strategy and corporate development to another; and Vineet Khurana became controller at Kyndryl after five years in three different CFO roles at IBM. Kyndryl’s global alliances and partnerships leader Stephen Leonard held a number of positions at IBM, most recently as general manager of the Power Systems division.

It wasn’t until the second half of May 2021 that Kyndryl began to name its top technical staff: CIO Michael Bradshaw is new to IBM, having previously served as CIO at NBC/Universal and as CIO for Mission Systems and Training at Lockheed Martin. CTO Antoine Shagoury is a former CIO of US bank State Street and of stock exchanges in London and the US. Most recently, he worked at strategic advisory partnership Ridge-Lane.

Other senior Kyndryl hires from outside IBM include Vic Bhagat, a former CIO for Verizon Enterprise Solutions, EMC, and several units of GE as the head of its customer advisory practice, and COO Harsh Chugh, most recently CFO at SaaS provider PlanSource.

Who is on Kyndryl’s board?

To provide the new company with more stability, Kyndryl’s board of directors will serve overlapping three-year terms through 2027, so it’ll take at least two elections for an outside group to take control of the board.

Kyndryl’s first 10 directors are:

CEO Martyn Schroeter, board chairman
Stephen Hester, lead independent director. He was CEO of RSA Insurance Group until June 2021, and is chairman of easyJet
Dominic Caruso, retired Johnson & Johnson CFO
John Harris, former VP of business development for Raytheon and board member at Cisco Systems
Shirley Ann Jackson, president of Rensselaer Polytechnic Institute
Janina Kugel, former CHRO and member of the managing board of German industrial conglomerate Siemens
Denis Machuel, CEO of temporary staffing firm Adecco
Rahul Merchant, former head of technology at retirement fund TIAA, Fannie Mae, and Merrill Lynch, and current board member at Convergint Technologies, Global Cloud Exchange, Juniper Networks, and Emulex
Jana Schreuder, retired COO of Northern Trust and current board member at Entrust Datacard and Blucora
Howard Ungerleider, president and CFO of commodity chemicals company Dow

What does Kyndryl’s split mean for IBM?

IBM is still one of the biggest technology businesses in the world. Its separation from Kyndryl freed it from a legacy business that wasn’t growing, and enabled it to reorganize into three main operating segments now called Software, Consulting (formerly Global Business Services), and Infrastructure. It’s doing well post-split: For the full year 2021 revenue from Software rose 5.3% to $24.1 billion, and Consulting made $17.8 billion, up 9.8%, although revenue from Infrastructure, the segment Kyndryl was spun out of, fell 2.4% to $14.2 billion. Those trends, both positive and negative, continued through the first half of 2022.

Customer needs for application services and infrastructure services are diverging, and so spinning off Kyndryl will allow IBM to focus on growing its open hybrid cloud platform and AI capabilities, IBM CEO Arvind Krishna said in October 2020. The split turns IBM from a services-led company to one making more than half its revenue from software and solutions.

But until that growth takes hold, Kyndryl and IBM remain close, as they began their separate lives as one another’s largest customers.

 

IBM, IBM Global Services, Managed IT Services, Managed Service Providers, Outsourcing, Technology Industry

Sastry Durvasula, Chief Information & Client Services Officer at TIAA, joins host Maryfran Johnson for this CIO Leadership Live interview, jointly produced by CIO.com and the CIO Executive Council. They discuss big tech innovations, advancing AI horizons, client tech labs and more.

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CIO, CIO Leadership Live

After years of investments, Oracle’s bet on cloud computing has started to pay off with nearly a third of its revenue in the first quarter of fiscal year 2023 coming from cloud services. Total cloud revenue (SaaS and IaaS combined) stood at $3.6 billion in the quarter, up 50% year-on-year, without accounting for currency fluctuations.

The company expects to hit an annualized revenue run rate of more than $20 billion combining all of its cloud services, company Chairman Larry Ellison said on Monday, adding that Oracle acquired close to 1,000 new “paying” cloud customers in the last three months.

“Total cloud growth, again, including Cerner, is expected to grow from 46% to 50% in constant currency, 42% to 46% in USD. I expect that total cloud growth for the fiscal year, excluding Cerner, will be above 30% in constant currency,” said Safra Catz, chief executive officer at Oracle, during an earnings call. Oracle’s $28.3 billion acquisition of healthcare IT company Cerner closed in June.

For the quarter ended August 31, the company reported a total revenue of $11.4 billion, up 23% year-on-year. In the same period last fiscal year, the company had reported a total revenue of $9.7 billion.  

Oracle sees growth in all segments of cloud computing

Oracle has been seeing rapid growth in all subsegments of cloud computing. Oracle’s cloud revenue includes IaaS and SaaS. IaaS includes revenue from Oracle Cloud Infrastructure (OCI), Oracle Cloud at Customer and Autonomous Databases, whereas SaaS includes revenue from Oracle Fusion, Netsuite and other services.

For the quarter under review, Oracle said IaaS revenue stood at $900 million, up by 58% year-on-year without taking in the effect of currency fluctuations and excluding any contribution from Cerner.  

OCI consumption in the quarter increased 104% year-on-year, followed by Oracle Cloud at Customer and Autonomous Databases consumption showing an increase of 92% and 56% year-on-year respectively, the company said.

This growth, according to Catz, can be attributed to the growth in demand for OCI that the company has been seeing since April this year, and a new sales strategy.

The company, over the last two years, has invested in hiring engineering talent in the field to help customers bring workloads to OCI, Catz said, adding these employees tailor these migrations in the most cost-effective manner.

In fact, Oracle seems confident that it will bring customers from rivals such as AWS and Azure to OCI, as soon as the next quarter.

“I personally have been talking to some of Amazon’s most famous brands (noticeable enterprises that use AWS services currently) that are running at AWS. And the AWS build is getting very large, and they can save a huge amount of money by moving to OCI. And I expect next quarter, we will be announcing some brands, some companies moving off Amazon to OCI that will shock you,” said Ellison during the company’s earnings call.

The Oracle chairman reiterated the statement when asked about OCI’s go-to-market strategy during the same call.

Government organizations such as UK Home Office and enterprises across the world such as Brazilian fintech Banco Digi+, Saudi Arabian financial service provider Al Yusr and several other companies have moved workloads to OCI in the last three months, the company said.

Oracle expects to hit an annualized revenue of $3.2 billion for IaaS, including OCI, Oracle Cloud at Customer, and Autonomous Databases.

The company’s total infrastructure subscription revenue including support (cloud and on-premises) stood at $4.4 billion for the quarter, up 7% in constant currency and excluding any contribution from Cerner.

Fusion applications, NetSuite continue to grow

Fusion applications such as enterprise resource planning (ERP) and human capital management (HCM), along with NetSuite ERP, continued to drive revenue momentum for Oracle and the company expects to hit an annualized revenue of $5.8 billion from these services.

“Our strategic back-office cloud applications now have annualized revenue of $5.8 billion and grew 33% in constant currency, including Fusion ERP, which was up 38%, NetSuite ERP up 30%, and Fusion HCM up 26%,” Catz said during the earnings call.

The growth in these services, according to the chief executive, can be attributed to cost savings in back office due to their direct implementation across enterprises.

For its first quarter as part of Oracle, Cerner chalked up $1.4 billion in revenue and the company claims that it is the best revenue quarter for the company since its inception.

Oracle expects Cerner to drive more revenue in the coming quarters as it completes its full integration.  

Oracle’s profits are declining

Although Oracle beat estimates to reach record revenue in the first quarter of fiscal 2023, net profit slowed due to higher operating expenses, led by sales, marketing and research and development.

The company reported an operating expense of $8.8 billion against $6.3 billion for the same quarter last year.

Net income for the company stood at $1.5 billion against $2.4 billion for the corresponding period last year.

Cloud Computing

Digital transformation is no longer a choice; it is an imperative. What’s more, speed is of the essence. While digital transformation enables the business, it also drives the business and IT.

COVID-19 drove the demand for new digital models that no one had imagined, at a scale and velocity not anticipated. The global pandemic also brought enormous disruption to the physical workplace. People shifted to working and making purchases from home, and many patterns changed. All of this had profound implications on how the digital world needs to be connected, especially the enterprise.

Transformation is not only business led, but IT leadership also has a key seat at the table. Adaptability and automation underpin people (culture), process, and technology. An aware, intelligent, and resilient IT infrastructure services is foundational. A new operating and management model embracing the new and the old (legacy) is critical.

While the COVID-19 pandemic slowed the physical world, it created a greater sense of urgency for digital transformation. Enterprises are shifting from immediate cost take-out to accelerating

digital transformation. According to IBV COVID-19 and the Future of Business, 59% of respondents surveyed accelerated digital transformation, and 66% completed digital transformation initiatives that previously encountered resistance.

In Kyndryl’s view, a new operating model is one of the three tenets underpinning digital transformation, along with foundational cloud adoption and embracing modernization technologies. Those three tenets are:

Manage cloud services anywhere, from any cloud.Pivot to new ways of working as needed.Modernize by embracing modern technologies as strategic assets.

Digital transformation acceleration lies at the juncture of digital business drivers and rapid technology adoption – and Kyndryl’s advisory and implementation services are designed to help. Kyndryl offers digital transformation acceleration with focus and scale on IT modernization, helping businesses & governments achieve rapid business outcomes and digital experiences.

Want to learn more? Start your journey here.

Cloud Management

Enterprises have dramatically increased their use of cloud in the last two years – and cloud has emerged as a positive force for change. But there are still barriers to adoption.

More than 50% of organizations surveyed increased their usage of cloud because of the pandemic, and 92% accelerated faster than anticipated, according to Microsoft’s Hybrid & Multicloud Perceptions Survey.[1] Furthermore, more than 60% of customers plan further increases over the next 12-24 months, the survey found.

And yet Gartner reports that 50% of organizations surveyed will delay migration to cloud due to lack of insufficient cloud IaaS skills.[2]

The list of hybrid and multi-cloud challenges facing IT and business leaders is a long one:

Managing the existing IT estate and the complexities of a hybrid, multi-cloud landscapeExpanding and changing security, compliance, and resiliency requirementsIntegration and data management requirements across the landscapeGovernance across the expanded ecosystem

In a word, the leading practices of yesterday and the requirements of tomorrow – from emerging expectations around remote work to accelerated technological adoption – are far from aligned.That’s where Kyndryl can help, offering end-to-end services to accelerate the cloud modernization journey. Capabilities include:

Minimize risk and improve success with an integrated building-block approachFocus on security at the forefront of every engagementPartnering to extend ecosystems for better outcomesTackle pressing business objectives in modern, digital ways via Kyndryl/Microsoft Joint Innovation LabDeep industry expertise and thousands of person-years’ experienceModern automation, operations, management, and governance capabilitiesAdvanced delivery: intelligent operations with automated and standardized processes across hyperscaler native and traditional IT

Kydrynl follows a 3-stage process:

Cloud consulting: Cloud workload assessment, strategy, and architecture services for plan and buildout of cloud solutions. Also offering cloud migration and modernization services.Hybrid and multi cloud services: Provision, monitor, and manage IaaS, PaaS, and/or Container Platforms on any cloud environment (public, private, hybrid, or multi).Modern Operations with Kyndryl Cloud Management Platform: Platform capabilities to provide improved operational discipline through financial governance and accountability for IT consumption on hyperscalers or private cloud.  Preventive and predictive fault / incident management with AIOps.

Interested? Click here to learn more and download the Kyndryl Global Practice Overview.

[1] https://blogs.microsoft.com/wp-content/uploads/prod/2022/01/Microsoft-Cloud-Survey-Results-Final.pdf

[2] https://www.gartner.com/smarterwithgartner/4-trends-impacting-cloud-adoption-in-2020

Cloud Management