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Techaisle Blog

Insightful research, flexible data, and deep analysis by a global SMB IT Market Research and Industry Analyst organization dedicated to tracking the Future of SMBs and Channels.

Red Hat cloud services deliver time to value and enhance developer and operator efficiency

In this Techaisle Take analysis, I will discuss which customer challenges Red Hat is addressing with its cloud services, market differentiation, especially VMware, and why its significant value lies in providing a consistent full-stack development and operational experience.

The customer challenges

A successful approach to the cloud needs to be structured around its capacity to evolve, support changing business requirements and customer/partner/employee expectations, respond to competitive pressures, and embrace new opportunities for automation/integration of automated systems. Businesses may be comfortable pursuing a limited number of objectives, but these objectives are no longer static. One of the challenges to providing cloud services is that the cloud spans two significant disciplines. One of the challenges to providing cloud services is that the cloud spans two critical levels. At a strategic level, the cloud is a management issue, and at the execution level, it is an IT issue. In IT, there are two main actors, developers and operators. Both developers and operations teams hold promise to support cloud development and deployment. In response, businesses have turned to an approach to development known as DevOps. In response, businesses have turned to an approach to developing and operating systems known as DevOps. Because of the optionality and complexity of tooling, it can be difficult to source appropriate cloud support for DevOps at a practical level. Techaisle’s Container Adoption Trends survey data shows that 57% of commercial customers seek application modernization services, and 77% are currently engaged in application migration services. Yet, 22% of firms believe there is a lack of IT and business strategy alignment understanding related to DevOps practice. Although modernization is a business priority, determining the right approach, paying off technical debt, internal strife between scrum/agile teams, not well-understood data & application dependencies, and legacy SDLC processes slow down the modernization programs. The competing corporate objectives usually compel an organization to manage and deploy a mix of environments, including on-prem configurations, private cloud, and multiple public cloud services. These diverse environments result in the need for a hybrid approach.

As a result, businesses deal with many inhibitors when planning to add business value at a faster pace and compete in the digital economy. The big challenge is building applications faster, reducing time to value, and deploying on-prem in private or public clouds. Operations teams are specifically under pressure to control costs, reduce operational complexity, improve security, and consistently manage across multiple cloud deployments. Operations teams are managing legacy applications running in virtualized environments in the data center while witnessing explosive adoption of the public cloud and associated services. In addition, businesses are increasing edge deployments, specifically in the industrial and telco verticals.

The solution – Red Hat Cloud Services

Red Hat’s cloud services strategy is built to address the multitude of the above-outlined challenges. Red Hat OpenShift provides consistency across all cloud environments, helping developers in cloud-native application development and rolling out applications in containers faster, giving the operators the ability to have the same operating experience across every deployment footprint for every application in both on-prem and public cloud. In addition to the core OpenShift platform, Red Hat Cloud Services includes several tightly integrated application development and data services intended to help developers build workloads and applications within the OpenShift managed-service environments. These additional managed cloud services include an API management service (Red Hat OpenShift API Management), a Kafka and streaming service (Red Hat OpenShift Streams for Apache Kafka), a service to simplify access control across multiple database vendors (Red Hat OpenShift Database Access), and a data science service (Red Hat OpenShift Data Science) for AI/ML workloads. According to Techaisle’s Container Adoption Trends survey research, the additional services are likely to see an adoption growth of 68% among commercial customers within the year.

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Hybrid work is challenging the SMBs

Techaisle’s SMB and Midmarket Hybrid Work Adoption Trends survey indicates that 41% of SMBs plan a phased approach to return to the office, up from 22% in 2021. 20% of employees will likely work from home, in sharp contrast to 58% in 2021, similar to pre-pandemic levels in 2019 when 29% of small business (1-99) employees, 9% of employees within midmarket firms (100-999), and 7% within upper-midmarket firms (1000-4999), who worked from home. Techaisle survey also shows that 42% of employees want to work 3-4 days per week from home.

Security, remote IT support, and unreliable networks continue to be significant technology challenges in managing remote workers. Remote IT support is an especially acute inhibitor for 46% of small businesses. On the people-side of the hybrid work equation, work-life conflict, maintaining team cohesiveness, and lack of training/career implications are dominant challenges. As a result, only 11% have a hybrid first mindset, but 37% believe they have mature remote work practices.

Team collaboration solutions, office collaboration tools (conference room devices), and remote worker collaboration devices (headsets, video cameras, etc.) are the top three priorities for 45% to 58% of SMBs. PC upgrades and refreshes to enable a hybrid workforce are the fourth top priority for 39% of SMBs.

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Zoho Creator Low-code platform blurring the IT-business divide to build, integrate applications, and analyze data

Coding is not everyone's inclination, yet there is a need to rapidly automate new workflows, generate new insights from scattered datasets, drive competitive advantage, improve customer interactions and make operational improvements. Low-code/no-code platforms such as Quickbase, Airtable, Microsoft Power platform, and Salesforce Lightning aim to equip and empower business users to be self-sufficient and agile to achieve their business objectives. But Zoho Creator Platform is different. It effortlessly enables both business and IT users to pursue their individual interests and is very well suited for the SMB and midmarket segments. It replaces the band-aiding of work processes with a permanent yet elastic fix to improve organizational efficiency. Business users can spin up applications. If IT needs to add additional complexity, the IT team can develop that through custom capabilities. Developers can write, store, and execute reusable code blocks in the Zoho Creator Platform using Deluge or Java or Node.js. These functions encourage IT and business teams to work together to build scalable and easily maintainable enterprise-ready apps faster. Developers can now launch solutions in different environments of choice—development, staging, or production, with a single click based on the application's readiness.

Most people associate Low-code with spreadsheet replacement, email replacement, automating, and digitizing them. Instead, the Zoho Creator Platform aims to help recreate processes to leverage everything a local platform can do in mobile, analytics, and governance.

Zoho Creator was introduced 15 years ago as an online database. Its latest version, Zoho Creator Platform, announced on March 3, 2022, aims to empower everyone to build applications solutions with a unified platform quickly. Specifically in the SMB and midmarket firms, IT is overloaded and has less time to codify new processes and modernize existing ones. Regardless, most organizations do not have well-defined business processes and want flexibility.

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Worldwide SMB and Midmarket IT spending forecast to reach USD1.25 trillion in 2022

Techaisle's latest research forecasts worldwide small business (1-99 employees), core midmarket (100-999 employees), and upper midmarket (1000-5000 employees) IT spend (excluding telecom services) will reach US$1.25 trillion in 2022. IT services will see the highest proportion of IT spending. Datacenter solutions will exhibit a growth of 4%. Overall worldwide cloud spending within the SMB and midmarket will grow by 21%. By 2025, 43% of global SMB and midmarket IT spending will be in the cloud.

SMB IT investment is increasing to counter inflation, labor shortage, supply chain concerns and accelerate business transformation through digitalization. SMBs are looking for ways to streamline business and IT processes to best return on existing human capital. In the pursuit of greater efficiency, SMBs are also exploring options that help stretch budgets and use efficiency-oriented techniques to optimize the impact of wage inflation and the increasingly competitive landscape. SMBs plan to invest in PCs, analytics, cloud, security, UCaaS / CCaaS, customer experience solutions, and networking.

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