The cloud is ubiquitous in today’s business world. This operational model is changing both data center operations and application development processes across multiple domains. As the manager of data centers for some of the most significant companies in the world, IBM has observed this profound shift in the strategic outsourcing marketplace. These shifts are being driven by:Financial changes designed to minimize CAPEX and maximize OPEX.Acquisition changes that prioritize as-a-service IT consumption and multisource procurement.Operational changes that shift from data center ownership and physical management toward the virtual management of IT services from data centers owned by AWS, Azure, IBM and Hosted VMware providers.What’s Driving Innovation?With these changes, organizations are challenged to update their internal processes in a manner that addresses changing people skills, new programmable IT infrastructures and the multicloud world. Application development best practices are also transitioning, which is upending enterprise software deployments. These new development strategies are driving companies away from:Monolithic designs, toward designs that aggregate the use of microservices.Agile and Waterfall management models, toward fully automated DevOps.Physical infrastructures and virtual servers, toward containerized environments.While these transformations are seemingly inevitable, companies embark on their individualized journeys from a variety of starting points and with three different goals. The first goal is to support legacy enterprise application enhancements and deployments that tend to start and remain in an on-premise environment. The second is to implement new application designs that are primarily cloud-native for deployment to public cloud environments. In the face of this bifurcation, data center transformation projects represent the third goal. These tend to start with the automation of infrastructure components, with an end target of fully automated and containerized IT service provisioning and consumption within a DevOps operational environment.Attaining these three operational goals is why cloud computing has driven rapid innovation, causing unprecedented disruption to the IT

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