Blog Archives

Recent polling results

I’ve just put out a new research report called The Changing Colocation and Data Center Market. Macroeconomic factors have driven major changes in both the supply and demand picture for data center construction, leasing, and colocation, in the last quarter of 2008, continuing into this year. The economic environment has brought about abrupt shift in sourcing strategies, build plans, and the like, driving a ton of inquiry for myself and my colleagues. This report looks at those changes, and presents results from a colocation poll done of attendees at Gartner’s data center conference in December.

Those of you interested in commentary related to that conference might also want to read reports done by colleagues of mine: Too Many Data Center Conference Attendees Are Not Considering Availability and Location Risks in Data Center Siting and Sourcing Decisions, and an issue near and dear to many businesses right now, how to stretch out their money and current data center life, Pragmatic Guidance on Data Center Energy Issues for the Next 18 Months.

Reports are clients-only, sorry.

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My coverage

I’ve received various queries from people, particularly analyst relations folks at vendors, trying to understand what I cover, especially as it relates to cloud computing, so I figured I’d devote a blog post to explaining.

Gartner analysts do not really have “official coverage areas” defined by titles, and our coverage shifts dynamically based on client needs and our own interests. We are matrix-managed, and our research falls into “agendas” (which may be outside our “home team”) and we collaborate across the company in “research communities”. I report into a team called Enterprise Network Services within our Technology and Service Providers group (i.e., what was Dataquest), but I spend about 90% of my time answering end-user inquiries, with the remainder split between vendors and investors. I focus on North America but also track my markets globally. I’m responding for sizing and forecasting my markets, too.

I use the term “Internet infrastructure services” to succinctly describe my coverage, but other terms, like “emerging enterprise network services” are used, as well. I cover services that are enabled by networks, rather than networking per se.

My coverage falls into the following broad buckets:

  • Hosting, colocation, and the general market for data center space.
  • Content delivery networks, and application delivery networks as a service.
  • The Internet ecosystem, enabling technologies like DNS, policy issues, etc.
  • Cloud computing.

Cloud computing, of course, is an enormously broad topic, and it’s covered across Gartner in many areas of specialization, with those of us who track it closely collaborating via our Cloud research community.

My particular focus in the cloud realm is on cloud infrastructure services — public clouds and “virtual private” clouds, on the infrastructure side (i.e., excluding SaaS, consumer content/apps, etc.). Because so many of these services are, in their currently-nascent stage, basically a way to host applications built using Web technologies, and compete directly in that same market, it’s been a very natural extension of my coverage of hosting. But by the nature of the topic, my coverage also crosses into everything else touching the space.

Our end-user customers (IT managers and architects) ask me questions like:

  • Help me cut through the hype and figure out this cloud thing.
  • Help me to understand what cloud offerings are available today.
  • Given my requirements, is there a cloud service that’s right for me?
  • What short-list of vendors should I look at for cloud infrastructure?
  • What’s the cost of the various cloud options?
  • What should I think about when considering putting a project in the cloud?
  • What will I need to do in order to get my application to run in the cloud?
  • What best practices can I learn from cloud vendors?

Our vendor customers ask me questions like:

  • How is the cloud transformation going to affect my business?
  • What do users care about when purchasing a cloud service?
  • What does the competitive landscape look like?
  • What should I be thinking about in my three-year roadmap?
  • What are the technologies that I should be exploiting?
  • Who should I acquire for competitive advantage?

My research is primarily grounded in the here-and-now — from what’s available now, to what’s going to be important over the next five years. However, like everyone who covers cloud computing, I’m also hunched over the crystal ball, trying to see a decade or two into the future. But companies buy stuff thinking about their needs right now and maybe their needs three years out, and vendors think about the next year’s product plans and how it positions them three years out, so I’m kept pretty busy dealing within the more immediate-term window of “how do I cut through the hype to use cloud to bring measurable benefit to my business?”

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The value, or not, of hands-on testing

At Gartner, we generally do not do hands-on testing of products, with the exception of some folks who cover consumer devices and the like. And even then, it’s an informal thing. Unlike the trade rags, for instance, we don’t have test labs or other facilities for doing formal testing.

There are a lot of reasons for that, but from my perspective, the analyst role has been primarily to advise IT management. Engineers can and will want to do testing themselves (and better than we can). Also, for the mid-size to enterprise market that we target, any hands-on testing that we might do is relatively meaningless vis a vis the complexity of the typical enterprise implementation.

Yet, the self-service nature of cloud computing makes it trivially cheap to do testing of these services, and without needing to involve the vendor. (I find that if I’m paying for a service, I feel free to bother the customer support guys, and find out what that’s really like, without being a nuisance to analyst relations or getting a false impression.) So for me, testing things myself has a kind of magnetic draw; call it the siren song of my inner geek. The question I’m asking myself, given the time consumed, is, “To what end?”

I think the reason I’m trying to do at least a little bit of hands-on with each major cloud is that I feel like I’m grounding hype in reality. I know that in superficially dinking around with these clouds, I’m only lightly skimming the surface of what it’s like to deploy in the environments. But it gives me an idea of how turnkey something is, or not, as well as the level of polish in these initial efforts.

This is a market that is full of incredible hype, and going through the mental exercise of “how would I use this in production” helps me to advise my clients on what is and isn’t ready for prime-time. An acquaintance once memorably wrote, when he was disputing some research, that analysts sit at the apex of the hype food-chain, consuming pure hype and excreting little pellets of hype as dense as neutronium. I remember being both amused and deeply offended when I first read that. Of course, I think he was very wrong — whatever we’re fed in marketing, tends to be more than overcome by the overwhelming volume of IT buyer inquiry we do, which is full of the ugly reality of actual implementation. But the comment has stuck in my memory as a dark reminder that an analyst needs to be vigilant about not feeding at the hype-trough. Keeping in touch by being at least a little hands-on helps to innoculate against that.

However, I realized, after talking to a cloud vendor client the other day, that I probably should not waste their phone inquiry time talking about hands-on impressions. That’s better left to this blog, or email, or their customers and the geek blogosphere. My direct impressions are only meaningfully relevant to the extent that what I experience hands-on contradicts marketing messages, or indicates a misalignment between strategy and implementation, or otherwise touches something higher-level. My job, as an analyst, is to not get lost in the weeds.

Nevertheless, there’s simply nothing like gaining a direct feel for something, and I am, unfortunately, way behind in my testing; I’ve got more demos accumulating than I’ve had time to try out, and the longer it takes to set something up, the more it lags in my mental queue.

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New year, new companies

I thought I’d start off the New Year with a FAQ: “How do I get to talk to you about what my company is offering?” This is closely related to one of the questions that I get most frequently at conferences and networking events: “How do I get on an analyst’s radar screen?”

The answer to these questions is pretty straightforward: Make a briefing request. A big analyst shop like my employer, Gartner, has a formal process that lets any vendor request to brief analysts. We, at least, will take briefings, without prejudice, from clients and non-clients alike. (It’s just that clients are entitled to advice and feedback; non-clients are not, although we’ll generally engage in dialogs if the non-client has something interesting to say.)

To convince an analyst to take a first-time briefing, though, you need to have an elevator pitch that makes an analyst say, “Hey, this is relevant to my coverage and this is a vendor that’s doing something interesting.” Alternatively, you need to have won some high-profile deals or otherwise show evidence that you’re going to be making waves in the market. Start-ups often fail to articulate what the compelling value proposition is, or otherwise demonstrate that they’re important to know about, which leads analysts to decide that it’s not yet worth taking the time to listen to a briefing.

Analysts love cool new vendors. Talking to smart people who are doing cool things and have great insights into their markets is one of the best parts of being an analyst.

If you’re an innovative or rapidly-growing provider in my coverage space, and we’ve never spoken before, I encourage you to make a briefing request. I’m particularly interested in cloud infrastructure start-ups, at the moment.

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Cloud research

I am spending as much of my research time as possible on cloud these days, although my core coverage (colocation, hosting, and CDNs) still demands most of my client-facing time.

Reflecting the fact that hosting and cloud infrastructure services are part of the same broad market (if you’re buying service from Joyent or GoGrid or MediaTemple or the like, you’re buying hosting), the next Gartner Magic Quadrant for Web Hosting will include cloud providers. That means I’m currently busy working on an awful lot of stuff, preparatory to beginning the formal process in January. I know we’ll be dealing with a lot of vendors who have never participated in a Magic Quadrant before, which should make this next iteration personally challenging but hopefully very interesting to our clients and exciting to vendors in the space.

Anyway, I have two new research notes out today:

Web Hosting and Cloud Infrastructure Prices, North America, 2008. This defines a segmentation for the emerging cloud infrastructure services market, and provides guidance to current pricing for the various category of Web hosting services, including cloud services.

Dataquest Insight: A Service Provider Road Map to the Cloud Infrastructure Transformation. This is a note targeted at hosting companies, carriers, IT outsourcers, and others who are in, or plan to enter, the hosting or cloud infrastructure services markets. It’s a practical guide to the evolving market, with a look at product and customer segmentation, the financial impacts, and the practicalities of evolving from traditional hosting to the cloud.

Gartner clients only for those notes, sorry.

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New CDN research notes

I have three new research notes out:

Determine Your Video Delivery Requirements. When I talk to clients, I often find that IT is trying to source a video delivery solution without having much of an idea of what the requirements actually are. This note is directed at them; it’s intended to serve as a framework for discussions with the content owners.

Toolkit: Determining Your Content Delivery Network Requirements. This toolkit consists of three Excel worksheets. The first gathers a handful of high-level requirements, in order to figure out what type of vendor you’re probably looking for. The second helps you estimate your volume and convert between the three typical measurements used (Mbps, MPVs, or GB delivered). The third is a pricing estimator and converter.

Purchasing Content Delivery Network Services. This is a practical guide to buying CDN services, targeted towards mid-sized and enterprise purchasers.

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Recently-published research

Here’s a quick round-up of some of my recently-published research.

Is Amazon EC2 Right For You? This is an introduction to Amazon’s Elastic Compute Cloud, written for a mildly technical audience. It summarizes Amazon’s capabilities, the typical business case for using it, and what you’ve got to do to use it. If you’re an engineer looking for a quick briefing, or you want to show a “what this newfangled thing is” summary to your manager, or you’re an investor trying to understand what exactly it is that Amazon does, this is the document for you.

Dataquest Insight: Web Hosting, North America, 2006-2012. This is an in-depth look at the colocation and hosting business, together with market forecasts and trends. (Investors may also want to look at the Invest Implications.)

Dataquest Insight: Content Delivery Networks, North America, 2006-2012. This is an in-depth look at the CDN market, segment-by-segment, with market forecasts and trends. (Investors may also want to look at the Invest Implications.)

You’ll need to be a Gartner subscriber (or purchase the individual document) in order to view these pieces.

Upcoming research (for publication in the next month): A pricing guide for Web hosting and cloud infrastructure services; a classification scheme and service provider roadmap for cloud offerings; a toolkit for CDN requirements gathering and price estimation; a framework for gathering video requirements; and a CDN selection guide.

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