The other area where we have had quite a bit of success in NZ is with Orion Health. They have essentially adopted the whole HP cloud stack. I mean the converged infrastructure, the virtualization layer, they are working with a hypervisor provider, and on top of that a HP cloud system. All of the automation stack on top of that, and they are running that from NZ. It is actually quite a good NZ story [about] centralised management of private clouds, since healthcare has such specific security and sovereignty needs associated with it. Most of the data needs to be in-country.
NZ cloud services will see an expansion of its set of services. But right now, predominantly it's IaaS. You could buy bare metal, virtual machines and they go for about $80 a month or thereabouts. And you could add to that various sets of apps. The apps stack is dependent on the client at this point in time, but we will be running more generic apps stacks as we build the portfolio of solutions that we offer.
The relative percentage of traditional IT will go down but it will take years. It will take a long time.
Q: What is the role of the public cloud in hybrid delivery?
SD: One thing that people are going to take into consideration is traditional IT — it is not going away. Hybrid delivery is not just hybrid cloud it includes traditional IT. So you got private cloud, managed cloud, public cloud and traditional IT sides. A lot of people gloss over that, but as people move to the cloud a lot of workload and apps and services will never move off the traditional environment. All that — the systems, tools, processes — has to work together. A lot of people gloss over that when they are talking about the cloud: "Ah you don't have to worry about all that old stuff."
The world will spend a couple of hundred billion dollars on cloud next year. They are still going to spend nearly $2 trillion on traditional IT. So that is important. That is where our value proposition comes into place where we span across all four of those pillars.
So if you actually think about why someone would want to move down a hybrid delivery strategy, it is pretty simple when you get down to basics. A traditional enterprise customer is dealing with 3000 apps to run their business. A typical NZ customer, mentioned yesterday — about 1200 apps to run their business. IT budgets are probably flat. Pressure coming from business is enormous. How do I deliver more value? How I do not only support the business but how do I shape it? How do I do that in an optimal way? Even if I did rationalisation I have got it down to just 1000 apps.
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