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China, Cisco, Enterprise IT, Inspur, Networking, Networks, News & Analysis

Cisco strengthens China operations with Inspur joint venture

Cisco corporateCisco Systems is to form a joint venture with Chinese server maker Inspur, selling networking and cloud computing products in China. Cisco and Inspur will jointly invest $100 million in the project.

The partnership comes in the face of mutual suspicion between the US and Chinese government amid claims and counter claims of state sponsored cyber security threats.

In June Cisco was forced to remove several of its senior executives in China, amid reports of falling sales slide and Chinese government fears about the foreign ownership of networking equipment.

Cisco’s China sales fell 20 per cent on the previous year in the quarter ending on April 25 at a time when its global revenue gained 5.1 per cent. As its share of the Chinese router market fell from 21.2 per cent to 9.4 per cent the lost sales went to local rival Huawei Technologies, according to Bernstein Research.

Direct selling became more challenging, The Wall Street Journal has reported, after US National Security Agency whistleblower Edward Snowden said the NSA put surveillance tools in US technology products sold overseas.

US-Chinese technology company partnerships are growing in number and Microsoft announced on Thursday an alliance with Baidu and the Chinese state-owned private investment firm Tsinghua Unigroup on cloud technology. Last week Dell unveiled plans to invest $125 billion over five years in China. Earlier this year, IBM pledged to help develop China’s advanced chip industry with a ‘Made with China’ strategy, while chipmakers Intel and Qualcomm are developing chips with smaller Chinese companies.

Chinese President Xi Jinping’s arrived in Seattle this morning on a state visit to the US.

Chinese officials have said the partnerships will follow the pattern of car manufacturing agreements in the past, with foreign technology firms granted market access in return for shared technology and co-operation with Chinese industry.

developer, Enterprise IT, IBM, News & Analysis, Watson

IBM opens San Francisco office for Watson developer cloud

IBMIBM has opened a new office in San Francisco to channel further growth in its supercomputing business as it claims 77,000 developers across the world are using its Watson Developer Cloud to pilot, test and deploy new business ideas.

The San Francisco office will open in 2016 to give local start ups access to Watson technology for their software projects. The facility will include resources dedicated to IBM’s new Spark processing technology as the vendor seeks to get Spark users interested in Watson, it said. IBM claims 100 companies have released software services based on Watson.

With a reported $100 million of venture capital fund earmarked for startups looking to build products on Watson, IBM now plans to offer its nascent partners technical support and consultancy on business plans, in addition to market making initiatives that include introductions to potential customers.

In September IBM opened a new Watson Health business centre in the Boston area to target the health sector and pharmaceutical industry. The new cloud initiative comes in the wake of reports of declining revenues in 13 consecutive quarters, while the app economy is ‘in full swing’, as IBM described it, with industry revenue projected to grow to $143 billion in 2016, according to analyst IDC. By 2018 half of all consumers will interact with services based on cognitive computing on a regular basis, according to the analyst.

IBM also announced a new expanded portfolio of application programming interfaces into Watson, bring the net total to 50. IBM’s cloud development partners have created systems for query support for card payments, customer support Q&As for financial services, live event media aggregation ‘as a service’ social marketing and apps for the entertainment and marketing industries. Early investment partners include WayBlazer, Sellpoints, Welltok, Pathway Genomics, Modernizing Medicine and Fluid.

In the UK, IBM has created three new Watson partners 50wise, Volume and SocialBro, which have created cloud apps for financial services, sales training and online marketing.

Azure, Capgemini, Consulting, Enterprise IT, News & Analysis, Private Cloud

Capgemini recruits Microsoft Azure in cloud service expansion push

CloudCapgemini has added Microsoft to its cloud services programme as it seeks to give a broader range of cloud services to more clients. Microsoft is the first in a number of vendors that CapGemini is seeking to add to its cloud service portfolio, it said.

Under the new Capgemini Cloud Choice with Microsoft scheme it will offer cloud advice, managed platforms and ‘applied integrated innovation’ services. Initiatives include OneShare, which speeds the testing and development of Microsoft Azure systems and offers to control costs through usage monitoring and resource scheduling.

A second mooted offering is SkySight, which is described as an ‘Azure-like’ private cloud which aims to help enterprises to speed up the installation of new applications. Capemini says it will help clients get value for money on managed services and fine-tune the configuration process.

A third scheme will create industry-focused IP offerings, such as a system tailored to the specific needs of the banking sector, based on the experiences of Capgemini’s own in house banking specialists. The domain expertise will be offered in all major industries, including pharmaceuticals, manufacturing and the health sector.

The cloud offering will cover all solutions encompassed within hybrid, public, hosted and private cloud services using Azure.

As part of the offering, Capgemini will align activities with independent software vendors and start-ups to create new ways of delivering integrated solutions. New ventures and start-ups will also benefit from the offering, Capgemini says, as partners will become a focal point for integrating new innovations into the Capgemini solutions portfolio.

The expansion comes after Capgemini subsidiary Sogeti reported that it managed to cut the costs of one client, Dutch postal service PostNL, by 20 per cent by migrating its IT services onto the cloud with Microsoft Azure.

“Capgemini helped us to define our roadmap to migrate more than 40 applications and now operates its Cloud Platform for us,” said Marcel Krom, CIO at PostNL. “We have reduced costs and gained flexibility in handling volume variances.”

Azure, Cloud Storage, DataStax, Microsoft, News & Analysis, Storage as a Service

DataStax Enterprise delivered with Microsoft Azure to run on any cloud

AzureOpen source distributed database developer Datastax has worked with partner Microsoft to fine tune the delivery of its new cloud based system over the latter’s Azure service.

The new service, DataStax Enterprise (DSE) running on Microsoft’s Azure cloud service, was unveiled at the Cassandra Summit in California.

Databases no longer have to be centralised to have integrity according to Microsoft and Datastax, who claim to have created a distributed database that runs smoothly across all the varieties of the cloud. Datastax claims its DSE makes it easy to move Apache Cassandra and DSE workloads between data centres, service providers and Azure. DataStax claims customers can now build hybrid applications that can make full use of all three resources.

The new system aims to bring a stable version of a database to the cloud, overcoming the challenge of maintain one version of each record when elements of the database are stored on different computers at different locations. Datastax claims it can overcome the technical difficulties involved in both integrity and scalability so that users can enjoy the advantage of cloud computing, like flexibility of scale and cost controls, without surrendering the traditional strengths of a monolithic system.

The fine-tuning of the DSE with Azure ensures that the enterprises can have a development and production-ready ‘bring your own license’ clusters, claimed DataStax CEO Billy Bosworth. These can be launched in minutes on the Azure Marketplace platform using Azure resource management (ARM) templates, he told delegates at the summit.

Increasingly DataStax Enterprise customers use the database in hybrid cloud environments. Its alignment with Microsoft helps any company needing to build high-performance IoT, mobile and web apps quickly, said Bosworth.

“DataStax is a natural partner as it can build systems that scale across thousands of servers, which is ideal for a hyper-scale cloud environment,” said Scott Guthrie, Microsoft VP for Cloud and Enterprise.

BackBlaze, News & Analysis, Public Cloud, Storage, Storage as a Service

Backblaze launches cheap cloud storage service

BackBlaze B2 screenBackup service provider Backblaze has made a cloud storage service available for beta testing. When launched it could provide businesses with a cheap alternative to the Amazon S3 and the storage services bundled with Microsoft Azure and Google’s Cloud.

According to sources, Backblaze B2 will offer a free tier of service of up to 10GB storage, with 1GB/ per day of outbound traffic and unlimited inbound bandwidth. Developers will be able to access it through an API and command-line interface, but the service will also offer a web interface for less technical users.

Launched in 2007 Backblaze stores 150 petabytes of backup data and over 10 billion files on its servers, having built its own storage pods and software as a policy. Now, it intends to use this infrastructure building knowledge to offer a competitive cloud storage service, according to CEO Gleb Budman.

“We spent 90 per cent of our time and energy on building out the cloud storage and only 10 per cent on the front end,” Glebman told Tech Crunch. The stability of its backup service technology persuaded many users to extend the service into data storage. In response to customer demand,

Backblaze’s engineers spent a year working on the software to make this possible. Now the company is preparing to launch a business to business service that, it says, can compete with the cloud storage market’s incumbents on price and availability.

Backblaze’s service, when launched, will be half the price of Amazon Glacier, and ‘about a fourth’ of Amazon’s S3 service, according to sources. “Storage is still expensive,” Glebman said.

Though the primary use for Backblaze B2 will be to store images, videos and other documents, Budman said he expects some users to use it to store large research data sets.

News & Analysis, procurement, Public Sector, Research, Sungard

Hidden cost of public sector cloud over £300m a year, says research

The UK’s public sector is spending an extra £300 million a year on maintaining cloud services and on hidden costs associated with their cloud computing projects, according to Sungard Availability Services.

The claim follows an independent study, commissioned by Sungard, that questioned 45 senior IT decision makers in the UK in public sector organisations with more than 500 employees. The average individual cloud spend of the study group, in 2014/15, was £390,000.

Sungard’s analysis of the research appears in a report, Digital by Design: Avoiding the Cloud Hangover in the UK Public Sector, which claims that unexpected costs and increasing complexity will create a ‘cloud hangover’.

The main revelation of the research is that 82 per cent UK public sector organisations (according to the study group of 45 decision makers) have encountered some form of unplanned cloud spend. The average yearly cost of maintaining cloud services (among the study group) was £139,000. A further £258,000 was spent by each, over the last five years, on unforeseen costs. External maintenance costs for hardware accounted for 41 per cent of these unexpected costs, while systems integration was the other major contributor to bill shock, accounting for 30 per cent of the unbudgeted expenditure.

According to the report, 42 per cent of UK public sector organisations use the cloud to lower the work load for their ‘IT team’, while 47 per cent expect the cloud to reduce IT costs. Some 43 per cent of the public sector’s cloud customers are allegedly struggling with the costs of personnel needed to manage cloud deployments.

Roughly half (53 per cent) of all UK public sector organisations said cost savings were the key driver for adopting cloud services, but 33 per cent believe this has not been achieved. Over half (55 per cent) of all UK public sector organisations (claims the report) complain that the cloud has increased the complexity of their IT environment and 71 per cent say that cloud computing added a new set of IT challenges. Achieving interoperability between existing IT and new cloud platforms was the most frequently mentioned challenge, cited by 44 per cent of the survey group.

“There is no silver bullet for adopting cloud computing,” said Keith Tilley, executive VP of Global Sales and Customer Services Management at Sungard Availability Services, who called for a case by case review.

cloudbolt, containerization, News & Analysis, SDN, Virtualisation

CloudBolt adds SDN, containerization and support

Network Function VirtualisationVirtual appliance maker CloudBolt Software now offers better support for microservices, software defined networking (SDN) and containerization on its platform. It is also offering compatibility with a variety of container services, it has announced.

According to CloudBolt its customers can now virtualize their networks with access to VMware NSX directly through its system. There is also new additional support for Docker and Kubernetes for customers wishing to use application containerization. The addition of new support capacity for IBM SoftLayer, HP Helion and CenturyLink Cloud means that there are now 13 cloud platforms compatible with CloudBolt.

The addition of Docker and Kubernetes marks the first time that any form of microservices management has been available on Cloudbolt’s system. The new compatibility with VMware NSX will allow customers to spin up virtual environments within the CloudBolt platform, explained CEO Jon Mittelhause. This means they can now use software defined networks and networks function virtualisation to simplify network configuration and management. The newest incarnation of CloudBolt also extends support for OpenStack and Cloud Foundry.

Meanwhile, widening the choice of cloud environments available to customers gives CloudBolt clients more options for locations from which to configure and publish capacity through the CloudBolt service catalogue, it says. New sites are available in Canada, India, Italy and Mexico.

News of the product upgrade follows a strategic decision to move the company’s corporate headquarters from Washington, DC to Silicon Valley in California as it seeks extra funding. Yesterday the 2015 Global Venture Capital Confidence Survey compiled by Deloitte and the National Venture Capital Association (NVCA) suggested that investors are most likely to put funds behind Silicon Valley start ups.

CloudBolt, founded in 2011, recently received an additional $2 million in funding from investors in a bid to cater to rising demands from customers.

“In the past year, we have seen a marked increase in the number of enterprises that want the benefits of SDN and container technologies,” said Mittelhauser, “the latest version of CloudBolt should make it easier and cheaper for enterprises to reap the benefits of these technologies.”

Cloudflare, Funding, Google, Microsoft, News & Analysis, Qualcomm, startup

Cloud security start up Cloudflare gets $110 million in venture funding

Secure cloudGoogle, Microsoft and chip maker Qualcomm are among the investors to collectively stake $110 million in networking and cyber security start up CloudFlare, according to a report in Fortune.

Cloudflare offers services that speed up cloud systems and web sites while beefing up security. Its main market proposition is to speed up the functioning of any services used by enterprises at the edge of their networks. By doing so it provides a cheaper alternative to the traditional model of on-premise appliances.

Cloudflare claims enterprises can quickly set up cloud-based firewall, load balancing, WAN optimization, distributed denial of service (DDoS) mitigation, content delivery and domain name services services worldwide without needing any hardware. It claims that in one day it saved Chinese users more than 243 years of time that would have been collectively spent waiting for web content to load.

Last week Cloudflare finalized a joint venture with Chinese Internet giant Baidu that allows both US-based companies and Chinese-based companies to use CloudFlare’s website performance service while adhering to Chinese data laws.

Although CloudFlare maintains no physical operations in China, it has worked with Baidu to set up technology within Baidu’s facilities that mimic CloudFlare’s services elsewhere, Prince said.

The funding round was led by Fidelity Investments with Google Capital, Microsoft, Baidu and Qualcomm Ventures, the investment arm of Qualcomm all contributing funds. CloudFlare now has $182 million in total funding.

Matthew Prince, CEO of the start up, said Cloudflare didn’t need the funding as much as it needed the credibility that comes with top brand association. The confidence that comes with the backing of Google and Microsoft could convince nervous buyers that this is a solid investment when the company prepares itself for an initial public offering, it was reported. However, the IPO is unlikely to happen this year, said Prince, and he hinted that it would come no earlier than 2017.

Content & Applications, Microsoft, News & Analysis, office 2016, Office 365, Software as a service

Microsoft releases Office 2016 for ‘mobile-first, cloud-first world’

Microsoft Office 2016 devices croppedMicrosoft has promised to ‘re-invent productivity and business processes’ for the mobile and cloud-first world, with its new Office 2016 for Windows. It has also unveiled new additions to Office 365 and made Office 2016 for Mac available as a one-time purchase.

The latest version of Office is designed to make optimal use of Windows 10, with better collaboration and tighter security. The productivity applications within the suite have been updated to make them more cloud friendly, with changes to Word, Excel, PowerPoint, Outlook, OneNote, Access, Project and Visio to make them more collaborative in nature, according to Microsoft.

One reported change is that groups of employees can now work on a single Word document and view each other’s comments as they are written. The new system now includes Skype for Business so that users of any new Office app can chat, screen share or video chat directly from their documents. Another new feature, enabled by Skype integration, is the ability to simultaneously co-author documents. In October Skype will be available on Office Online, according to Microsoft.

“The way people work has changed dramatically, and that’s why Microsoft is focused on reinventing productivity and business processes for the mobile-first, cloud-first world,” said Microsoft CEO Satya Nadella.

These latest changes are a ‘big step’ in transforming Office from familiar but individual productivity tools to a connected set of apps and service designed for collaboration and teamwork, according to Nadella.

The security protection for business customers has been beefed up, according to Microsoft, with built-in data loss prevention features designed to cuts the risk of data leaks. New multi-factor authentication will secure the access of those outside the corporate network. Enterprise Data Protection, promised ‘later this year’ will help business to secure the process of sharing corporate content across application and cloud locations.

The delivery of future Office desktop application updates is to change, says Microsoft, so that Office 365 subscribers receive new features and capabilities continuously.

Other new tools include an analytics from Office Delve, a personal work analytics (Delve) and additional charts and formulas for Excel.

“The Office 2016 apps run beautifully on the best Windows ever,” said Kirk Koenigsbauer, Microsoft’s corporate VP for the Office Client Applications and Services. “The Office 2016 apps simplify collaboration and remove barriers to team success.”

BCSG, News & Analysis, SMB, telco, Telco Cloud, UK

Study urges telcos to do better on cloud

Mobile bankingTelecoms operators are missing an open goal on cloud services, according to a report by cloud service market provider BCSG, writes Telecoms.com. While operators are perfectly placed to sell small and medium sized businesses (SMBs) the services they want, their indifference is actually driving customer away and they could miss a multi billion pound opportunity.

Its report ‘SMB cloud services: the multi-billion dollar opportunity for telcos’ interprets the data from an independent survey of 500 US and UK SMBs. The report argues that there is a strong demand for cloud computing services among medium sized businesses. However, the SMBs say their buying decisions are being delayed by confusion over which services will best suit their needs. While 43 per cent of the study group said they want to buy cloud services, only 31 per cent even had a cloud migration strategy in place.

Demand for cloud services is high and many want support in making the transition from their present on-premise computing model, says the report. However, telcos are ignoring this clear opportunity for consultancy, it argues.

Many SMBs complained that the indifference of their current supplier will make them look elsewhere. According to the report 42 per cent of SMBs receive ‘no help from their telecoms operators whatsoever’. This could possibly lead to mass defections, as 58 per cent of the sample of SMBs said they’d take their business to any service provider that shows them how to get access to a broader range of technology. As a result of the lack of interest shown by the telcos in their existing customers, 52 per cent of the SMBs said they will contemplate switching operators in the next two years.

With the potential UK/US SMB cloud computing services market quantified at $22 billion by PAC/Compass Intelligence studies, it’s vital that operators seize the initiative and address this clear and captive audience, said Tom Platt, commercial director at BCSG. “Operators have a unique opportunity to provide support and guidance to SMBs,” said Platt. If they don’t there could be consequences, Platt warned. “Long tenure from SMB customers does not imply loyalty.”