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Enterprise IT, News & Analysis

IBM talks cloud innovation at CWF 2015

IBM CWFEnterprise tech giant IBM used its keynote presentation at Cloud World Forum 2015 to talk up the role of the digital economy, especially cloud tech, to drive innovation and disruption.

The speaker was Sandy Carter, GM of Cloud Ecosystem and Developers at IBM. The premise of her keynote was that the digital economy is driving innovation and chose five specific illustrations of this.

The first was the use of real-time data by Wimbledon.com, which for 50 weeks of the year is quiet, but then explodes when the tennis tournament is underway – 65 million page views last year. The point Carter wanted to make is that with the help of cloud solutions such as IBM’s Bluemix, which inevitably got frequent mentions, Wimbledon is able to not just scale up its resources but use analytics and even social media cues to anticipate demand in real-time.

The second example concerned IoT, via the example of German company Diabetizer, which uses wearables and the cloud to help people manage diabetes and to communicate with health professionals. The significance in this context was the point that IoT is essentially about data and what you do with it.

The remaining examples of cloud-enabled innovation focused on mobile, the hybrid cloud and a final rallying call for the Bluemix ecosystem. The general thread was that the flexibility, analytics and collaboration power (there was a nod to yesterday’s Box announcement) afforded by the cloud is the foundation of innovation today.

Box, Enterprise IT, IBM, News & Analysis

IBM and Box announce global enterprise cloud partnership

US enterprise tech giant IBM has revealed a new global partnership with cloud storage outfit Box to integrate their products and sell into vertically targeted enterprise markets.

More specifically the strategic alliance will combine Box’s cloud collaboration platform with a number of IBM solutions, including analytics, cloud and security. Both companies will sell the combined products.

“Today’s digital enterprises demand world-class technologies that transform how their organizations operate both internally and externally,” said Aaron Levie, co-founder and CEO of Box. “This extensive alliance between Box and IBM opens up an exciting opportunity for both companies to reach new markets and deliver unified solutions and services that can redefine industries, advance secure collaboration and revolutionize enterprise mobility.”

“This partnership will transform the way work is done in industries and professions that shape our experience every day,” said Bob Picciano, SVP of IBM Analytics. “The impact will be felt by experts and professionals in industries such as healthcare, financial services, law, and engineering who are overwhelmed by today’s digital data and seek better solutions to manage large volumes of information more intelligently and securely. The integration of IBM and Box technologies, combined with our global cloud capabilities and the ability to enrich content with analytics, will help unlock actionable insights for use across the enterprise.”

The alliance will focus on three main areas: content management and social collaboration; enterprise cloud, security and consulting; and custom app development for industries. The general thread of the announcement seems to be a desire to bring cloud applications to regions and industries that are not currently making the most of them and is just the latest in a sequence of collaborations by both Box and IBM.

acquisition, Colt, fibre, fidelity, Telco Cloud

Fidelity bid for Colt doesn’t convince directors

Fidelity Investments, which is already the majority shareholder in Colt Group, has bid to acquire the remaining stock of the telecoms and cloud provider, but Colt directors are unconvinced.

The relationship between the two companies is intimate and has been from the very beginning. Fidelity provided the cash to form Colt back in 1992, to provide telecoms services in London. It soon expanded across Europe but in 2001, together with a lot of other telecoms and tech companies, encountered problems requiring a further injection of capital from Fidelity.

For some reason, despite holding its current majority position since then, Fidelity has decided it’s time for Colt to be wholly private once more. “As founders and majority shareholders of Colt, Fidelity is pleased to announce the continuation of its commitment to the business through returning the group to private ownership,” said Cyrus Jilla, President of Eight Roads, the proprietary investment arm of Fidelity.

“We typically hold our proprietary investments outside the financial services industry, such as Colt, in the private domain. This transaction allows us to hold our investment in Colt consistent with this strategy while providing an attractive and certain value for the current Colt independent shareholders.”

The independent directors of Colt, who are there to protect the interests of its shareholders, have publicly acknowledged the offer of 190p per share from Fidelity, but reckon it’s too low.

“The independent directors believe that the offer undervalues the company and its prospects and accordingly they consider that the financial terms of the offer are not fair to the independent shareholders of Colt,” said their statement.

“The independent directors believe that the financial terms of the offer may be considered by some shareholders to be acceptable in the circumstances, and accordingly make no recommendation to shareholders whether or not to accept the offer.

“Over the course of 2015, the management of Colt has been working on a plan to refocus the company’s activities and significantly improve its financial performance. The Board has provisionally approved a new business plan and further details will be announced in due course.”

Colt’s shares were trading at around 156p before the bid and jumped straight up to 190p, implying the market thinks Fidelity’s bid is likely to be accepted.

Financial Results, Larry Ellison, News & Analysis, Oracle, Quarterlies, quarterly results, Safra Catz, Salesforce

Oracle Q4 cloud revenues grow 29%, down 5% overall

Larry Ellison said the company's cloud revenue will eclipse Salesforce's revenue this year

Larry Ellison said the company’s cloud revenue will eclipse Salesforce’s revenue this year

Oracle Corporation has announced its 2015 fiscal Q4 quarterly earnings, unveiling impressive growth for its PaaS and SaaS business, which is up 29% on last year. The company posted overall revenue of $10.7 billion however, down 5% year on year.

After a bullish announcement of its Q3 results in March, where Oracle boss Larry Ellison publicly called out rival Salesforce, the software giant posted Software and Cloud business revenues at $8.4bn, down 6% year on year, while its SaaS and PaaS revenues came in at $416m.

Announcing the decline in revenues, Oracle was hasty to point the finger at the fluctuating strength of the US dollar against international exchange rates; it claimed total revenues would have been up 3%, software and cloud revenues up 2% and SaaS and PaaS growth 35% instead of 29% year on year, blaming the strengthening of the U.S. dollar.

Oracle CEO Safra Catz is expecting the growth of its SaaS and PaaS revenues to kick up a notch in fiscal year 2016.

“We sold an astonishing $426 million of new SaaS and PaaS annually recurring cloud subscription revenue in Q4,” he said. “We expect our rapidly increasing cloud sales to quickly translate into significantly more revenue and profits for Oracle Corporation.” For example, SaaS and PaaS revenues grew at a 34% constant currency rate in our just completed Q4, but we expect that revenue growth rate to jump to around 60% in constant currency this new fiscal year.”

In highlighting his firm’s ambition for the coming fiscal year, Ellison again took the chance to name-check one of Oracle’s main competitors.

“We expect to book between $1.5 and $2.0 billion of new SaaS and PaaS business this fiscal year,” he said. “That means Oracle would sell more new SaaS and PaaS business than salesforce.com plans to sell in their current fiscal year – the only remaining question is how much more. Oracle’s planned SaaS and PaaS revenue growth is around 60% in constant currency; salesforce.com has a planned growth rate of around 20%. When you contrast those growth rates it becomes clear that Oracle is on its way to becoming the world’s largest enterprise cloud company.”

451 Research, Apple Watch, Internet of Things, IoT, M2M, News & Analysis, wearable technology

Four-fold cellular IoT connections predicted by 2019

PrintIT analyst firm 451 Research has forecasted the growth of cellular network-based connections for IoT-devices as anticipation surrounding the tech continues to grow. It also reckons wearable tech as a major enterprise tool will become reality in the next 12 months.

According to the firm, the telecoms industry can expect a nigh on four-fold boom in cellular IoT connections between 2014 and 2019, growing from 252 million to 908 million globally. The firm reckons such growth comes down to several key factors, primarily the ease of access to and reduced costs of hardware and broadband for enterprise customers. Secondly, the maturation of cloud, data management and analytics platforms means machine-generated data can be hosted and utilised quicker than in previous years.

Finally, 451 also attributes increasing M&A activity as a positive influence on the developing IoT market, with the ongoing vendor land-grab driving advancements in technology.

“We continue to be bullish that ultimately the hype of IoT will be proven to be warranted back on business impact,” said Brian Partridge, 451’s research VP. “Over the forecast period we expect that M2M/IoT solution suppliers will find fertile ground in vertical markets such as retail and government that will adopt IoT/M2M to enable strategic digitization strategies such as smart cities and the use of digital signage, mobile point of sale, and connected kiosks to drive the transformation from brick and mortar to ‘click and mortar’.”

Simultaneously, Harbor Research has revealed some numbers forecasting the profitability of IoT applications, claiming 80% of IoT apps will be generating revenue for users within the next three years. At present, its survey suggest, 65% of apps are money making.

451 Research also looked into the use of wearable tech in the enterprise, and said that 39% of the IT decision-makers it quizzed will be deploying wearable tech solutions in the next six months, with another 24% following within a year. Of those deploying in the next six months, 81% identified smart watches as their wearable tech of choice.

“The release of Apple Watch has opened the flood gates governing wearables’ adoption,” said Ryan Martin, who’s an IoT and wearable tech analyst at 451. “Not now that the river is running, it’s less about where it will end and more about where – and when – to start. We expect wearable technology to deliver a key interface and input into the Industrial Internet of Things”.

To go alongside its research, 451 produced this handy market map for the IoT ecosystem.

 IoT Market Map 451

Datacentre, IBM, Marc Jones, News & Analysis, Nicola Ciniero, SoftLayer

IBM stands up SoftLayer datacentre in Italy

IBM has added its first SoftLayer datacentre in Italy, and its 24th globally

IBM has added its first SoftLayer datacentre in Italy, and its 24th globally

IBM announced the launch of its first SoftLayer datacentre in Italy this week, which is located in Cornaredo, Milan.

The company said the datacentre in Milan, a growing hub for cloud services, will enable it to offer a local option for Italian businesses looking to deploy IBM cloud services. The facility, it’s 24th SoftLayer datacentre globally, has a capacity for up to 11,000 servers, a power rating of 2.8 megawatts, and is designed to Tier III spec.

“The Italian IT sector is changing as startups and enterprises alike are increasingly turning to the cloud to optimize infrastructure, lower IT costs, create new revenue streams, and spur innovation,” said Marc Jones, chief technology officer for SoftLayer.

“The Milan datacentre extends the unique capabilities of our global platform by providing a fast, local onramp to the cloud. Customers have everything they need to quickly build out and test solutions that run the gamut from crunching big data to launching a mobile app globally,” Jones added.

Nicola Ciniero, general manager of IBM Italy said: “This datacentre represents a financial and technological investment made by a multinational company that has faith in this country’s potential. Having an IBM Cloud presence in Italy will provide local businesses with the right foundation to innovate and thrive on a global level.”

The move comes just a couple of months after IBM added a second SoftLayer datacentre in the Netherlands.

Anne O’Leary, Cork Internet eXchange (CIX), EMC, Internet of Things, IoT, News & Analysis, Orna Berry, Pivotal, vodafone

EMC, Vodafone partner on Internet of Things platform

EMC and Vodafone are teaming on a €2m IoT platform

EMC and Vodafone are teaming on a €2m IoT platform

Storage giant EMC is teaming up with Vodafone to develop and offer a platform for industrial Internet of Things (IoT) service development and testing.

The IoT development platform, known as Infinite, is spread across three datacentres – one hosted by EMC, another by Vodafone, and another by datacentre and cloud provider Cork Internet eXchange (CIX).

The companies said the platform can be used to develop a range of IoT services, particularly those to support industrial automation in fields like manufacturing and fleet management, but also healthcare and higher education.

EMC and Vodafone said the companies are investing about €2m in the initiative.

“EMC Federation is leading an industrial partnership encompassing rich data and Internet of Things. The digital age’s IT transformation – cloud, big data, social, mobile and Internet of Things, is continuously and increasingly changing the way we live and work,” said Orna Berry, corporate vice president innovation, EMC Centres of Excellences (CoE). “EMC Federation and Ireland’s CoE are excited to take a dynamic and influential part in this important eventuation, with the creation of the Infinite innovative IoT platform.”

This is also the first large scale project approved for use by the Industrial Internet Consortium, a membership group of telcos, research institutes and technology manufacturers created last year and focused on developing interoperability standards and common architectures to bridge smart devices, machines, mobile devices and the data they create.

The move means the offering adheres to a range of interoperability standards being proposed or consolidated by the group.

“Infinite will prove to be a valuable Industrial Internet testbed for a countless number of industries including smart cities and healthcare. As the need for more dynamic systems continues to grow, organisations will turn to utilising mobile networks to connect to virtual systems,” said Richard Soley, executive director of the Industrial Internet Consortium. “This testbed is going to prove the viability of doing all this with systems that require the utmost security – such as those used by hospitals and emergency medical services.”

Anne O’Leary, chief executive of Vodafone Ireland, said: “We are delighted to work with EMC in this exciting development. Vodafone is at the forefront of Internet of Things technology at a global level and I am proud to see Ireland also taking a lead in pioneering the development of these new disruptive technologies. IoT has the potential to transform business in Ireland and we are excited to be in a position to provide companies with access to start developing their own IoT services.”

With IoT heating up a broad range of IT and telecoms incumbents have thrown their hats into the development platform race. Last month for instance Google unveiled Brillo, a slimmed down version of Android with a  proprietary set of APIs for IoT-specific services and communications, while SAP unveiled a thinly re-branded version of HANA in the cloud for IoT. But while telcos have long tried to get in on this segment it seems to be an interesting move for EMC, which has generally kept a low profile in IoT beyond simply tailoring the marketing around its high-IO storage arrays, and has left much of the jockeying in this segment up to others in the Federation (like Pivotal).

Datacentre, Europe, Facebook, News & Analysis

Facebook to build Open Compute datacentre in Ireland

Facebook plans to build a datacentre in Ireland, its second in Europe

Facebook plans to build a datacentre in Ireland, its second in Europe

Facebook this week revealed plans to build an Open Compute datacentre in a bid to support its growth ambitions in Europe.

The proposed location of the new datacentre in County Meath will enable the company to make use of local renewable energy sources and talent, and would be the social media giant’s second in Europe. The first, in Lulea, Sweden, uses 100 per cent hydroelectricity to power its servers.

Facebook said the datacentre could generate hundreds of millions of euros in economic benefits for the region. The project is being supported by the by the Department of Jobs through IDA Ireland. Martin Shanahan, the organisation’s chief executive said: “Facebook’s existing relationship with Ireland is extremely strong and extensive in scope, but the news that the company wants to build its second European data centre in a regional location such as Meath will cement the relationship even further.”

“Ireland has been a home for Facebook since 2007 and today’s planning application demonstrates our continued interest to invest in Ireland,” said Facebook’s datacentre strategy head Rachel Peterson.

“We hope to build an innovative, environmentally friendly data centre that will help us continue to connect people in Ireland and around the world – while supporting local job creation and Ireland’s successful technology economy. We look forward to continuing our conversations with the Clonee community in coming weeks,” she said.

Facebook has less than a handful of datacentres globally but the data volumes it generates – and the infrastructure it needs to support its services – is significant. The company adds 300 million new photos every day, has a data warehouse of over 300 petabytes and processes hundreds of terabytes of data daily. And given nearly three quarters of Facebook users are outside the US, its build-out in Europe and other key strategic regions (India for instance) outside North America will likely continue.

Box, Network security, Networks, News & Analysis, NTT Com, VPN

Box to tap NTT’s VPN in Japan

Box is teaming up with NTT Com to launch Box over VPN

Box is teaming up with NTT Com to launch Box over VPN

Box and NTT Com have announced a partnership that will see the cloud storage incumbent offer access to its services through NTT’s VPN service. The companies said the move will improve confidence in cloud services among Japanese enterprises and expand the reach of both companies in the local IT services market.

Box also said the ‘Box over VPN’ scheme would improve network security for users and broaden the range of enterprise customers it caters to in the region, in particular enabling it to tap into government and financial services institutions.

“We’re thrilled to partner with NTT Com to help create transformative software for Japanese businesses in every industry,” said Box chief executive and founder Aaron Levie.

“This partnership will help more organizations to benefit from entirely new ways of working by elevating technology to enable secure collaboration and content management across geographical boundaries, while still meeting demands for robust control.”

Hidemune Sugawara, head of application & contents service, senior vice president of NTT Com, said: “By delivering added value based on NTT Com’s expertise in network security, we look forward to providing Box over VPN to a wide range of Japanese businesses. The partnership will enable Box to be combined with ID Federation1 and Salesforce over VPN2, both of which are provided by NTT Com, which will help to expand our file-collaboration businesses targeting large enterprises.”

Japan has one of the most mature cloud services markets in the Asia Pacific region, which as a whole is expected to generate about $7.4bn in 2015 according to Gartner.

Cisco, Deutsche Telekom, Huawei, News & Analysis, Salesforce, SAP, T-Systems, Telco Cloud

Deutsche Telekom wants to double cloud revenues by 2018

Deutsche Telekom wants to bolster its cloud business

Deutsche Telekom wants to bolster its cloud business

Deutsche Telekom said this week aims to redouble efforts to beat out big IT incumbents in the increasingly lucrative cloud services segment. Through the telco’s IT-focused subsidiary it intends to double cloud revenues over the next three years.

The company said it wants to start generating upwards of two billion euros annually from cloud services by 2018, double what it says it currently pulls in.

“At Deutsche Telekom, we want to grow by more than 20 percent each year in the field of cloud platforms, and to become the leading provider for businesses in Europe,” said Ferri Abolhassan, head of the IT Division at T-Systems.

Last year revenues from cloud solutions, in particular private cloud services, increased double digits at the firm, Abolhassan explained. But with the battle for cloud revenue heating up with more traditional IT service providers and vendors the company needs to scale up its cloud activities both within and outside T-Systems.

“The market for services from the public cloud – infrastructure, platforms and applications – that can be accessed through the public Internet promises further growth. In conjunction with partners, Deutsche Telekom plans to pit itself more strongly against the Internet corporations Google and Amazon in future. To achieve this, the departments within Deutsche Telekom’s segments are now stepping up their cloud activities across the Group,” he said, adding that DT will also continue to try and differentiate on security.

Telco’s haven’t been the natural choice for enterprise IT professionals but over the past few years many like DT have stepped up their cloud strategies, a move which largely sees them both acquiring successful cloud incumbents and integrate them into their own operations – for instance Verizon’s acquisition of Terremark, or CenturyLink’s acquisition of Savvis – and using their existing commercial telecoms and managed services clients as direct channels.

Partnerships are also key in this segment and earlier this year DT announced a flurry of cloud-centric deals with Cisco, Huawei, SAP and Salesforce. That said, the move could be a sign DT will soon ramp up partnerships with other big cloud providers or ISVs – or head down the M&A route.