back to article On-premises hardware sales about to boom says Morgan Stanley

Financial Services colossus Morgan Stanley reckons on-premises hardware vendors are about to have their best sales season for a decade. The firm popped out a research note on Monday February 26th in which head of North American Technology Hardware Equity Research Katy L. Huberty said that while "every $1 of revenue growth for …

  1. amanfromMars 1 Silver badge

    Spending money makes the world go round? Well, ...... IT certainly oils its Gear Wheels

    Seems like a typical mindless Morgan Stanley BTFD call, Simon.

    Clouds are not hardware critical, they are software phormed and driven.

    1. amanfromMars 1 Silver badge

      Re: Spending money makes the world go round? Well, ...... IT certainly oils its Gear Wheels

      Clouds are not hardware critical, they are software phormed and driven.

      Here is another Advanced IntelAIgent Cloud Platform, which proves/proofs the above? ...... Now that it's not Windows-only, you can simulate a theoretical computer on a real computer

      And shared as a question so that silent down voters can further again share nothing more valuable than disagreeable doubt that leads nowhere.:-)

  2. 0laf Silver badge
    Meh

    I'm not so sure. There is a still a very strong strategic push to move stuff into the cloud. And that push is happing irrespective if cloud based services are the right choice or now. The marketing guys have done very well in selling cloud to execs, they've sold the expectation that cloud, is cheaper, faster, easier, betterer in all cases.

    I've nothing against cloud if it's the right choice, it's just that often it isn't. It's been sold on the 'prices from' model that infests domestic purchasing.

    1. Charlie Clark Silver badge

      Reasons for not getting someone else to manage your infrastructure for you: security and bandwidth. So mission critical stuff will probably still run on-premises but anything that can be commodified will be. ML requires massive bandwidth for training only. Good IT departments can now spin up services locally or remote so hybrid is the way to go, as long as you can be 100% certain you can always get your data back.

      1. amanfromMars 1 Silver badge

        Rabid Info to Renegade Rogue Intel .....

        Good IT departments can now spin up services locally or remote so hybrid is the way to go, as long as you can be 100% certain you can always get your data back. .... Charlie Clark

        Howdy, Charlie Clark

        Great IT departments spin up enriched services with the data stored in Protected Clouds, in order to generate additional flows of energy and currency searching for the rewards entitled and gifted to Present Programs in APT Recognition of Outstanding Success.

        And if you don't believe Virtual Machines are so capable, then obviously there will be a Principle Principal worthy of the value seeded in expensive rewards. Given wisely ... ie to right worth and fabulously valuable Principle Principals ..... the gifts are a shrewd investment for returns beyond compare in works that can be miraculous when needs be.

        1. ecofeco Silver badge

          Re: Rabid Info to Renegade Rogue Intel .....

          I'm going to have lie down. Manfrommars made sense to me. Oh dear.

          1. ecofeco Silver badge

            Re: Rabid Info to Renegade Rogue Intel .....

            Damn phone keyboatd...

    2. Anonymous Coward
      Anonymous Coward

      Hybrid*

      I were designing a system right now I'd be thinking of putting the 'primary' system on one of the large provider's clouds and duplicating the system and replicating the data back to my own h/w, either on-prem or colo'd as failback/fallback.

      I'd also be backing up to my own h/w too, as well as elsewhere on the cloud.

      I think that the 'Territoriality' of cloud data is likely to become a big issue fairly soon though, which may affect your options and choices of cloud provider.

      * That's hybrid in terms of strategy, not system

  3. Snow Wombat
    Facepalm

    proving that....

    Morgan Stanley doesn't know their arse from a hole in the ground..

    Seriously... people got paid to come to that idiot conclusion?

    Only way that businesses are going to back to on prem iron is if the economics of Cloud become horrifically bad, because they would have to rebuild all their on prem infrastructure from scratch.

    That would mean re hiring a LOT of IT bods, and spending a LOT of money, plus the disruption, risk etc.

    Yeah... not happening.

    1. Anonymous Coward
      Anonymous Coward

      Re: proving that....

      The economics of cloud ARE horifically bad once you are a company of a decent size. As a senior IT bod at a major bank who publish research articles about cloud vs on prem that sometimes get quoted on theregister told me. "For fixed demand, cloud is just hosting and we know we can do that cheaper than Amazon" For variable demand it's very useful and lowers the CAPEX of setting up a business to almost zero.

      I know a decent list of companies who have moved a lot of infrastructure to the cloud - successfully - and then moved lots of it back once they saw the 7 figure bills from Amazon every month.

      1. Anonymous Coward
        Anonymous Coward

        Re: proving that....

        Are the C level movers and shakers in the business world the same tits that are heavy phone data users who sigh up to the 1gb of data a month plan. I say yes.

      2. Bob Dole (tm)

        Re: proving that....

        As a senior IT bod at a major bank who publish research articles about cloud vs on prem that sometimes get quoted on theregister told me.

        I've done work for many banks. I can tell you that the majority of them haven't had their own IT infrastructure for 20 years. Everything that can be outsourced, is outsourced. Only the very big guys do stuff on their own anymore.

        For a large business, sure, having your own hardware makes sense. You are already going to be employing your own IT staff regardless of where the hardware sits, so you may as well put the machines in your own building.

        However, far more businesses are of the smaller variety and it hasn't made sense to keep that stuff in house for a long time - even if you are a tech company. High availability for mission critical stuff is expensive, far more expensive than those Amazon bills. And, yes, I'm saying this as the owner of a tech business who hasn't had to deal with a server room for years.

    2. Solmyr ibn Wali Barad

      Re: proving that....

      "Only way that businesses are going to back to on prem iron is if the economics of Cloud become horrifically bad"

      Yeah, right now we're in the promotion phase. Economics will change. Also, companies will discover that opex isn't actually cheaper than capex.

  4. Anonymous Coward
    Anonymous Coward

    Memory? Flash?

    If this is true, the price situation with respect to memory and for flash are going to get a lot worse before they have any chance of returning to "normal." I can't see it even before accounting to outsourcing and/or "Cloud."

  5. devaya

    Misleading

    This article doesn't do justice to the actual post by Morgan Stanley which can be found at https://www.morganstanley.com/ideas/it-hardware-2018. All those commenting about the senselessness of the claim and arguing that cloud will continue to be the choice going forward while on-premise hardware dies a slow death have missed the key point in the original post (which has been omitted from this article) where they state that -"We estimate that 44% of computing workloads will be done in the cloud by the end of 2021, up from 21% today." MS is only claiming that IT organizations will now be able to open up their wallets and spend on the on-premise infrastructure upgrade/refresh for the remaining workloads (that was put on hold) as there is more clarity on the workloads that will to move to cloud. Hope that makes sense.

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