Multicloud infrastructure services are complicated and expensive

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Hello and welcome to Protocol Enterprise! Today: three cloud experts discuss the issue of multicloud, Microsoft finalizes the second largest acquisition in its history (so far) and the week ahead in enterprise technology.

Twirl up

While it seems like there’s never been a better time to launch an AI startup, investors aren’t so sure. According to new data from PitchBookinvestors plunged $115 billion into AI startups last year, an 87.2% increase from last year, which sounds good until you learn that investments in software startups globally increased by 131.1% in 2021.

You don’t choose multicloud; multicloud chooses you

A significant portion of a generation of tech leaders worn down by the limited enterprise infrastructure choices of the past see the rise of three stable cloud vendors as a chance to hedge bets across multiple operating environments. In practice, it is much more complicated.

Protocol hosted a discussion earlier this week with three enterprise technology experts — Paul Cormier, CEO of Red Hat; David Linthicum, director of cloud strategy at Deloitte; and Priyanka Sharma, Executive Director of CNCF — to consider the issue of multicloud. From a technical perspective, it has never been easier to operate across multiple clouds, and Microsoft and Google want to encourage this strategy as a way to wean businesses off of AWS.

  • “I see multicloud…as a foregone conclusion,” Sharma said. “Do people ever wake up and realize they have multiple cloud providers rather than a strategic approach? I think it’s a mix of both. »
  • Linthicum added that companies have started turning to multiple cloud providers “whether the CIO knows it or not. This often happens in the background.
  • Now that the core idea of ​​cloud computing is what enterprise IT services are all about, companies are starting to choose the services that make the most sense for their applications, regardless of where they are running, a declared Linthicum.
  • “Three or four years ago they had the idea that they would leverage one cloud provider, and now we’re at the idea of ​​harnessing the best AI technology, the best analytics technology, the best databases, things like that,” he said. noted.

But as businesses move to multicloud, they begin to realize how complex the move has become.

  • “Everyone has similarly named services,” Cormier said. “They are very powerful, but they are silos in themselves.”
  • Cloud customers can offload some of the management overhead to cloud providers using the managed services they all provide, but that has its own drawbacks, he said.
  • Once you’ve built an application around a higher-level managed service, compared to the basic offering of DIY tool cloud providers, you’ve effectively locked yourself into that service: in some ways, you You’ve conquered the whole reason you wanted to move to multicloud in the first place. .

And as enterprises move to multicloud, budgeting becomes a larger problem.

  • Enterprises, especially large ones, are already struggling to keep track of cloud spend with a single vendor. Guess what happens with two providers.
  • “You have to have metrics, basically, to monitor this and get things done,” Linthicum said. “And I think that’s the great discipline that’s happening these days.”

Whether or not companies plan to build applications on multiple cloud providers or find themselves in this situation thanks to mergers and shadow IT, it is clear that there is still a lot of work to be done to make the experience more manageable.

  • “I think it’s just a pain that we all have to go through as we’re on this journey of modernizing and using cloud capabilities and different services to their best limits,” Sharma said.

Now that AWS has truly recognized (albeit reluctantly) that multicloud is here to stay, customers interested in gaming might be able to demand better tools and more manageable services.

—Tom Krazit (E-mail | Twitter)

A MESSAGE FROM HASHICORP

At HashiCorp, we believe that infrastructure enables innovation. We help teams leverage this infrastructure in the cloud. Organizations rely on our solutions to provision, secure, connect and run their critical applications. Our products provide multi-cloud infrastructure automation and power some of the most important applications for the world’s largest enterprises.

Learn more

Microsoft adopts Nuance

Microsoft Acquisition of $19.7 billion of Nuance Communications officially closed on Friday, paving the way for the company to expand into healthcare and improve its communications software with AI technology.

As the backbone of Siri, Nuance already works with healthcare giants like Epic, Humana and Cleveland Clinic. Longtime rival Oracle made a similar play just weeks ago with its deal to buy Cerner for $28 billion. Cerner, which provides medical records, is also a Nuance customer.

Microsoft also plans to use Nuance’s technology to update its contact center in automate the work of call center agents. The broader vision is to use its capabilities in conversational AI “in healthcare, financial services, retail, telecommunications and other industries with Microsoft’s global cloud ecosystems,” wrote Nuance CEO Mark Benjamin in the announcement. Benjamin will retain his role as CEO of Nuance after the acquisition and will report to Scott Guthrie, head of the Microsoft Cloud and AI group.

The acquisition, originally announced in April last year, is one of Microsoft’s largest ever, eclipsed only by its $26.2 billion purchase of LinkedIn.

— Aisha counts (E-mail | Twitter)

Coming next week

Next week will bring a fresh round of revenue from enterprise technology companies like MongoDB, Asana, and CrowdStrike. Pay particular attention to Oracle, which reports for the first time after its acquisition of Cerner, and HashiCorp’s first earnings release since its December IPO.

MongoDB present financial results Tuesdays at 2 p.m. PT.

Asana share fourth quarter results Wednesdays at 1:30 p.m. PT.

CrowdStrike announcement earnings Wednesdays at 2 p.m. PT.

sofa base present financial results Wednesdays at 2 p.m. PT.

DocuSign share results Thursdays at 1:30 p.m. PT.

Oracle announcement earnings Thursdays at 2 p.m. PT.

Hashi Corp. announcement earnings Thursdays at 2 p.m. PT.

— Aïcha counts

A MESSAGE FROM HASHICORP

At HashiCorp, we believe that infrastructure enables innovation. We help teams leverage this infrastructure in the cloud. Organizations rely on our solutions to provision, secure, connect and run their critical applications. Our products provide multi-cloud infrastructure automation and power some of the most important applications for the world’s largest enterprises.

Learn more

Thanks for reading – see you Monday!

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