The Trillion Dollar Cloud Challenge

May 11, 2016 James Kessinger

A recent JP Morgan report predicted a massive uptake in enterprise cloud adoption in the next five years based on a recent CIO survey. Within a few weeks a May 2016 Forrester report indicated that migration into the public cloud involves considerable manual processes:

By Forrester’s estimate, the cost of public cloud is relatively small compared to the much larger cost of labor involved, which accounts for over 50% of total migration costs. As detailed in the brief, “[L]abor costs dwarf infrastructure and platform services costs in most of the migration projects we’ve reviewed.”


Adding more icing to the cake, Salesforce recently announced that it is moving to AWS. In addition to enterprises moving workloads to the cloud, AWS has landed one of the leading SaaS players.  That’s a big deal.

For years conventional wisdom has advised that SaaS represents a progression of app delivery from IaaS. Now it looks like SaaS providers will be using IaaS to deliver SaaS. This has huge implications for the growth of IaaS.

While it may not make much difference for SaaS customers (other than improved resilience perhaps- sorry, I couldn’t resist), this has considerable implications for AWS and Azure and a host of secondary IaaS players.

IaaS gets closer to looking like the future pillar of IT, which poses a question: Are there enough IT pros in the world to migrate the existing workloads that CIOs in the US want to migrate in the next five years?

This inherent conflict between CIO demand and labor/skills supply casts the spotlight on recent news about Exar Semiconductor’s automated cloud migration project as demand for automated cloud migration escalates.

Question Marks

It turns out migration wasn’t so painful after all. “We were surprised at how CloudVelox was able to mimic what we have on premise in the cloud,” Seljig said. “They figured it out in one day.”

Things should get interesting. Very interesting. The AWS partner ecosystem has been dominated by manual process body shops.  That has to change if CIO will be able to accomplish what they want, especially in an era of careful IT spending.

Learn how CloudVelox can automate cloud migration for complex app environments.

Read about Exar's cloud migration project  in InformationWeek or Silicon ANGLE.

Or attend this live event in Palo Alto on July 14.



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