Key Stakeholders: CIO, CFO, Accounting Directors and Managers, Procurement Directors and Managers, Telecom Expense Personnel, IT Asset Management Personnel, Cloud Service Managers, Enterprise Architects Why It Matters: As enterprise cloud infrastructure continues to grown 30-40% per year and containerization becomes a top enterprise concern, IT must have tools and a strategy for managing the cost…
Vendors and Solutions Mentioned: VMware, CloudHealth Technologies, Cloudyn, Microsoft Azure Cloud Cost Management, Cloud Cruiser, HPE OneSphere. Nutanix Beam, Minjar, Botmetric
Key Stakeholders: Chief Financial Officers, Chief Information Officers, Chief Accounting Officers, Chief Procurement Officers, Cloud Computing Directors and Managers, IT Procurement Directors and Managers, IT Expense Directors and Managers
Key Takeaway: As Best-of-Breed vendors continue to emerge, new technologies are invented, existing services continue to evolve, vendors pursue new and innovative pricing and delivery models, cloud computing remains easy to procure, and IaaS doubles every three years as a spend category, cloud computing management will only increase in complexity and the need for Cloud Service Management will only increase. VMware has made a wise choice in buying into a rapidly growing market and now has greater opportunity to support and augment complex peak, decentralized, and hybrid IT environments.
About the Announcement
On August 27, 2018, VMware announced a definitive agreement to acquire CloudHealth Technologies, a Boston-based startup company focused on providing a cloud operations and expense management platform that supports enterprise accounts across Amazon Web Services, Microsoft Azure, and Google Cloud Platform.
Key Stakeholders: CIO, CFO, Controllers, Comptrollers, Accounting Directors and Managers, IT Finance Directors and Managers, IT Expense Management Directors and Managers, Telecom Expense Management Directors and Managers, Enterprise Mobility Management Directors and Managers, Digital Transformation Managers, Internet of Things Directors and Managers On May 21st and 22nd, Amalgam Insights attended and presented at Tangoe LIVE…
Earlier this week, I was catching up with CloudCheckr for a preliminary briefing on my upcoming Cloud Services Management research coming out in December. This market, in general, is important to Amalgam’s coverage because the largest cloud infrastructure companies are growing over 50% per year, yet the majority of these services are not being managed or tracked from either a financial or governance perspective on a regular basis.
(Sneak peek: CloudCheckr’s combination of cost management, security management, and price ends up being a key reason that CloudCheckr has quickly grown to over 120 employees.)
During our conversation, Product Marketing Manager Todd Bernhard showed Amalgam an interesting tool for checking if Amazon Web Services S3 buckets are publicly accessible.
Why S3 Accessiblity Matters
Note: Updated August 2nd with coverage links from Sumeru, MDSL, Telesoft, AltAssets, AOTMP, Crunchbase, PEHub, and Pitchbook.
In case you missed the announcement, as of July 31st, Sumeru Equity Partners has acquired MDSL and is joining Telesoft with MDSL to form a single Technology Expense Management company. I had a few opinions about the new MDSL that didn’t fit into my more formal analysis because they’re observations rather than directional guidance. If you haven’t read the formal Market Milestone yet, please check it out.
First, Sumeru Equity Partners has an interesting portfolio of companies that could be accretive to the new MDSL company. Take a look at their current portfolio:
Recommended Research for: CIOs, CFOs, IT Controllers, Finance, IT Service Managers, and Business Managers purchasing cloud services.
Amalgam Insights has just published a Market Milestone describing why CloudHealth Technologies’ $46 Million Series D round is important for executives seeking to manage their cloud environments. At a time when multi-cloud management is imminent and businesses manage over $40 billion in cloud computing spend, CloudHealth Technologies’ Series D Round provides the resources to pursue international business and larger enterprise deals.
To learn more about CloudHealth Technologies and its role in a Cloud Service Management market that Amalgam estimates will be over $900 million in 2025;
Amalgam Insights specializes in Technology Consumption Management with a focus on how companies can align IT purchases and subscriptions to the relevant consumption models. This can and should include options for enterprises to purchase not only on a per-server or per-core basis, but also on a duration, user, resource, usage unit, feature, or baseline capacity basis. In this light, AI was especially interested in evaluating HPE’s Flexible Capacity billing capabilities across storage, computing, and networking as well as HPE’s new launch of Project New Stack.
Recently, Amalgam Insights attended HPE Discover, HPE’s semi-annual show devoted to its enterprise offerings. Our firm was especially interested in seeing how HPE would position itself after having divested much of its software portfolio to Micro Focus and then spin-merging its Enterprise Services division with CSC to form DXC Technology on April 1st of this year.
In HPE’s General Session and subsequent presentations, several key themes emerged in HPE’s positioning. The most obvious is that, in consolidating HPE’s offerings to servers, storage, and networking, the company is now focused on being the arms dealer for hybrid IT support. This is based both on the core HPE portfolio of technology and services as well as removing the business services and complementary technologies that were previously seen as competitive to potential HPE competitors. This fundamental change should serve HPE well.
How HPE found its focus
Price is the ultimate test of value. Amalgam cannot emphasis this enough. No matter how valuable you think your product or service is, the ultimate business test of that value is whether someone is willing to buy it at the listed price.
One of my favorite topics in enterprise software is pricing. Despite the work done in value-based pricing over the past 50 years, the vast majority of pricing exercises still start with either a very basic cost-plus or percentage-based ROI model. This assumption has a key issue: it assumes that your product is a commodity. To explain why and to explain how to take a more value-based approach, consider what a price is.
There are many ways to break down price and many roles that price plays from a marketing and sales perspective. But as a starting point, the model AI uses to translate value into price comes from 3 basic components: Reference Price, Differentiated Value, and Price Positioning
Yesterday, at the Boston Cloud Services Meetup at the Cambridge IBM Innovation Center, Amalgam Insights (AI) attended a Cloudyn-based event on “Overcoming the Challenges of Multi-Cloud Financial Management.” This presentation was headed by Account Executive Marcus Benson and focused on the challenges that Fortune 500 companies and managed service providers have in managing both complex single-vendor and multi-vendor cloud infrastructure environments.
Cloudyn is a cloud business and financial management solution founded in 2011 and set up as both a multi-tenant and multi-cloud solution running on AWS, Microsoft Azure and Google Cloud. Cloudyn supports a single pane of glass view for consolidated management and a real-time and continuous support of cost optimization for multiple vendors including Amazon Web Services, Microsoft Azure, Google Cloud, OpenStack, and Docker. Cloudyn has raised over $20 million in venture capital and seed funding and currently targets large enterprises, managed service providers, and companies with over 1 million dollars in annual cloud spend.