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Adam Johnson, Lauren Sell, Midokura, News & Analysis, Open Source, OpenStack

Midokura doubles down on OpenStack

Midokura is joining OpenStack as a sponsor

Midokura is joining OpenStack as a sponsor

Networking startup Midokura has announced it is joining the OpenStack Foundation as a corporate sponsor in a bid to further its agenda within the open source cloud software community.

The company, which focuses on developing network function virtualisation (NFV) capabilities and helped develop the initial OpenStack tools to enable NFV (Quantum / Neutron), said it wanted to join the OpenStack community in a more formal capacity so it could push for a number of initiatives near and dear to its heart.

That agenda includes the adoption of a working group to create the OpenStack Foundation test certification standards and certification for developers.

Efforts are already underway at the Foundation to come to some consensus around what components need to be included in a distribution to be considered “core OpenStack”, but some believe those efforts need to be broadened to appeal to and include ISVs developing for the platform.

“Midokura has been involved with the OpenStack project as an originator of the OpenStack Quantum plug-in, which has since been renamed as Neutron. We have continued code contributions in every release since Bexar,” said Adam Johnson, vice president of business, Midokura. “By doubling down on Midokura’s commitment to OpenStack as a corporate sponsor, we look forward to further promoting the ideals behind the OpenStack Foundation, which align with our own.”

Midokura’s MidoNet NFV technology replaces the default Open vSwitch deployed by OpenStack Neutron with its own.

Lauren Sell, vice president of marketing, OpenStack Foundation: “The OpenStack community wants choices when it comes to scale-out networking. Midokura has demonstrated its commitment to the OpenStack community by delivering an open-source MidoNet option that users can consume in an open, collaborative model. We’re excited about Midokura joining the Foundation as a corporate sponsor, and we look forward to working together to make the project stronger.”

Erez Yarkoni, IBM, Infrastructure as a Service, Mark Brewer, Networks, News & Analysis, telstra

Telstra to offer SoftLayer cloud access to Australian customers

Telstra and IBM are partnering to offer access to SoftLayer infrastructure

Telstra and IBM are partnering to offer access to SoftLayer infrastructure

Telstra and IBM have announced a partnership that will see the Australian telco offer access to SoftLayer cloud infrastructure to customers in Australia.

Telstra said that with the recent opening of IBM cloud datacentres in Melbourne and Sydney, the company will be able to expand its presence in the local cloud market by offering Australian businesses more choice in locally available cloud infrastructure services.

As part of the deal the telco’s customers will have access to the full-range of SoftLayer infrastructure services including bare metal servers, virtual servers, storage, security services and networking.

Erez Yarkoni, who serves as both chief information officer and executive director of cloud at Telstra said: “Telstra customers will be able to access IBM’s hourly and monthly compute services on the SoftLayer platform, a network of virtual data centres and global points-of-presence (PoPs), all of which are increasingly important as enterprises look to run their applications on the cloud.”

“Telstra customers can connect to IBM’s services via the internet or with a simple extension of their private network. By adding the Telstra Cloud Direct Connect offering, they can also access IP VPN connectivity, giving them a smooth experience between our Next IP network and their choice of global cloud platforms,” Yarkoni said.

Mark Brewer, general manager, IBM Global Technology Services Australia and New Zealand said: “Australian businesses have quickly realised the benefits of moving to a flexible cloud model to accommodate the rapidly changing needs of business today. IBM Cloud provides Telstra customers with unmatched choice and freedom of where to run their workloads, with proven levels security and high performance.”

Telstra already partners with Cisco on cloud infrastructure and is a flagship member of the networking giant’s Intercloud programme, but the company hailed its partnership with IBM as a key milestone in its cloud strategy, and may help bolster its appeal to business customers in the region.

DDOS, Deloitte, Ed Powers, Mike Denning, News & Analysis, Verizon

Deloitte, Verizon team on cybersecurity

Verizon and Deloitte are teaming up on cybersecurity

Verizon and Deloitte are teaming up on cybersecurity

Deloitte and Verizon Enterprise Solutions have announced a partnership that will see the two firms deliver a comprehensive set of cybersecurity and risk-management solutions to enterprises.

The deal will see Verizon leverage its experience in digital forensics and managed services experience and Deloitte’s cyber risk advisory services to deliver end-to-end incident response services.

“As the cybersecurity landscape becomes more formidable, this alliance enables enterprises to better prepare for today’s new reality,” said Mike Denning, vice president, global security for Verizon Enterprise Solutions.

“We understand that companies need to have the mindset that being breached is a matter of when, not if. With our combined capabilities, we are preparing enterprises to better withstand a cyberattack before and beyond the breach.”

Ed Powers, national managing principal, Deloitte cyber risk services, Deloitte said companies today are looking for more comprehensive cybersecurity tools rather than acquiring them in bits and pieces.

“Organizations today need to quickly contain the damage, but they also need a solutions provider that can help them regain full business strength and improve their capacity to withstand future crises. We are making it possible for our clients to meet tomorrow’s cyber challenges head-on while continuing to power performance in their businesses,” Powers said.

The move comes as cyberattacks like DDoS are becoming more frequent and more impactful. According to a recently published Neustar DDoS report which surveyed 250 businesses across a broad range of sectors globally, about 40 per cent of companies now estimate losses of over £100,000 per hour at peak times during a DDoS outage.

Americas, DiData, Digital Port Asia, Gyron, M&A, News & Analysis, NTT Com, Verio

NTT America and Verio to merge, keeps NTT America brand

The Verio brand will be no more under the proposed merger with NTT America

The Verio brand will be no more under the proposed merger with NTT America

NTT America and American cloud service provider Verio have announced a merger that will see the Verio brand absorbed into NTT America.

“Upon the merger, NTT America, the surviving company, will be taking over the whole existing services of Verio in the Cloud and Web hosting business domain,” the company said in prepared remarks.

“The intent of the merger is to maximize the competitiveness of NTT Com group’s cloud services within the rapid-changing business environment. NTT America and Verio will further improve the operational efficiency with the aim to strengthen cloud services for its enterprise customers.”

The move comes nearly fifteen years after NTT Com acquired Verio in an all-cash $5.5bn deal, a move aimed at leveraging expansion to the US in its dealings with large multinationals, which at the time were predominately in Asia.

At the time the acquisition was the subject of an investigation by the US government on national security grounds, but months after the initial deal was announced the Clinton-led government declined to intervene.

Over the past few years NTT Com has moved aggressively to bolster its cloud presence globally, with many of the NTT brands and sub-brands (DiData, Gyron, and Digital Port Asia) on hiring sprees. It also recently acquired e-shelter, a German hosting and cloud services provider.

AWS, data privacy, data protection, EU, Infrastructure as a Service, News & Analysis, Policy and Regulation

EU data protection authorities rubber-stamp AWS’ data processing agreement

EU data protection authorities have rubber-stamped AWS' data protection practices

EU data protection authorities have rubber-stamped AWS’ data protection practices

The group of European Union data protection authorities, known as the Article 29 Working Party (WP29), has approved AWS’ Data Processing Agreement, which the company said would help reassure customers it applies high standard of security and privacy in handling their data, whether moved inside or out of the EU.

Amazon said its inclusion of standardised model clauses within its customer contracts, and the WP29’s signoff of its contract, should help give customers more confidence in how it treats their data.

“The security, privacy, and protection of our customer’s data is our number one priority,” said Werner Vogels, chief technology officer, Amazon.

“Providing customers a DPA that has been approved by the EU data protection authorities is another way in which we are giving them assurances that they will receive the highest levels of data protection from AWS. We have spent a lot of time building tools, like security controls and encryption, to give customers the ability to protect their infrastructure and content.”

“We will always strive to provide the highest level of data security for AWS customers in the EU and around the world,” he added.

AWS already boasts a number of highly regulated clients in the US and Europe, and has made strides to appease the security and data-sovereignty-conscious customers. The company has certified to ISO 27001, SOC 1, 2, 3 and PCI DSS Level 1, is approved to provide its services to a number of banks in Europe, and is working with the CIA to build a massive private cloud platform.

More recently AWS added another EU availability zone based in Franfkurt; it operates one in Dublin.

The rubber-stamping seems to have come as welcome news to some European members of parliament, which have for the past few years been actively working on data protection reform in the region.

“The EU has the highest data protection standards in the world and it is very important that European citizens’ data is protected,” said Antanas Guoga, Member of the European Parliament.

“I believe that the Article 29 Working Party decision to approve the data proceeding agreement put forward by Amazon Web Services is a step forward to the right direction. I am pleased to see that AWS puts an emphasis on the protection of European customer data. I hope this decision will also help to drive further innovation in the cloud computing sector across the EU,” Guoga added.

AWS, Channel, Europe, IBM, Ingram Micro, News & Analysis, VAR

Ingram Micro expands cloud marketplace to EU

Traditional IT resellers are trying to rebuild the business model to fit cloud services

Traditional IT resellers are trying to rebuild the business model to fit cloud services

IT tech distributor Ingram Micro has launched a marketplace for cloud services in Europe in a bid to bolster its appeal to channel partners, many of which are increasingly offering their products as-a-service. The move is aimed at making its proposition in the cloud economy more compelling, particularly as other traditional IT vendors and cloud incumbents move in on reseller turf.

The Cloud Marketplace, which handles billing and service deployment for a range of services offered by cloud vendors, is already up and running in the US. But the most recent announcement will see the platform launch imminently in France, the Netherlands, and the UK.

The company said it plans to launch the marketplace in Belgium, Italy, Germany, Spain, and Sweden in the second quarter of 2015.

In prepared remarks the company said it wanted to enable channel partners to more effectively sell their cloud wares to clients, and in particular, exploit what Ingram sees as a growing opportunity in the SME market for resellers. With the Cloud Marketplace, channel partners can manage the complete end-customer subscription lifecycle from a single, automated platform, provided and supported by Ingram Micro, the company said.

“For our channel partners, enabling businesses to operate in a hybrid environment that includes cloud-based solutions is as much about business transformation as it is about technology,” said Carl Alloin, executive director Europe, Ingram Micro Cloud. “Our Cloud Marketplace was designed to help channel partners quickly scale as they seek to expand their footprint and profitability in the cloud.”

Ingram is among a growing number of resellers refitting their channel models for the cloud (Arrow is another big one in Europe that recently launched a cloud app marketplace), in part because other traditional vendors and cloud service providers are starting to threaten their role in the market. Vendors like IBM, which launched its cloud service marketplace last year, are much more willing to cooperate with other vendors they would otherwise compete with at different levels of the stack, while cloud incumbents like AWS are attracting a range of other software and service providers to its fast-growing ecosystem.

Analytics, BlueMix, IBM, Internet of Things, News & Analysis, smart cities, Vendor

IBM to pour £2bn into Internet of Things business unit

IBM is putting billions of dollars into creating a standalone IoT division

IBM is putting billions of dollars into creating a standalone IoT division

IBM announced it plans to spend up to £2bn over the next four years to consolidate and revamp its Internet of Things technologies and services into a standalone business unit. The move seems aimed at broadening its appeal beyond proto-IoT segments it traditionally caters to.

Through its Smart Cities and Smarter Planet programmes the company has effectively been offering what many today refer to as Internet of Things technologies, but the renewed investment will see IBM mobilise and train a massive fleet of consultants (over 2,000) on its consolidated IoT services portfolio, and offer a cloud-based platform for companies to help them marry data real time IoT data streams with other data sets and services.

The company also plans to carve out a section in Bluemix, IBM’s platform-as-a-service, for specialist IoT services, and expand IoT-focused partnerships with a range of technology and service providers.

“Our knowledge of the world grows with every connected sensor and device, but too often we are not acting on it, even when we know we can ensure a better result,” said Bob Picciano, senior vice president, IBM Analytics. “This is a major focus of investment for IBM because it’s a rich and broad-based opportunity where innovation matters.  Over the next decade, integration of IoT in business operations and decision-making will transform business.”

The move is part of a broader reorganisation effort currently underway at IBM, which is seeing the company realign internally (and trim headcount) to more effectively support service and technology development around cloud, mobile, security, and data analytics. Its Internet of Things offerings are both increasingly drawing from those other segments, and broadening beyond traditional smart cities or intelligent manufacturing segments use cases – areas where IBM has traditionally played.

In February for example ARM and IBM jointly announced an Internet of Things starter kit to enable developers to rapidly prototype mbed-based IoT applications using Bluemix, which ships with a development board from Freescale, powered by an ARM Cortex-M4 processor. The companies are aiming the kit at startups, which hasn’t traditionally been IBM’s nor ARM’s target demographic.

IBM, Networks, News & Analysis, NFV, Pete Lorenzen, SDN, Virtualisation

IBM opens SDN, NFV labs in Dallas, Paris

IBM is moving to bolster its service provider business

IBM is moving to bolster its service provider business

IBM has announced the launch of two Network Innovation Centres, where the company’s clients can experiment with software-defined networking and network function virtualisation technologies. The move seems aimed at bolstering its service provider business.

The centres, one in Paris, France and the other in Dallas, Texas, will focus primarily on experimenting with solutions for large enterprise networking systems and telecoms operators, and feature technologies from a range of IBM partner companies including Brocade, Cisco, Citrix, Juniper Networks, Riverbed, and VMware.

IBM said facilitating automation and orchestration innovation will be the main thrust of the centres.

“Effectively applying cloud technologies to the network could allow a company to reduce its overall network capacity while increasing utilization by dynamically providing resources during the day in Beijing while it’s nighttime in New York, and vice versa,” said Pete Lorenzen, general manager, Networking Services, IBM Global Technology Services.

“A telecom company could better manage periodic, localized spikes in smartphone usage caused by major sporting events or daily urban commutes, dynamically provisioning capacity when and where it’s needed,” Lorenzen added.

IBM has pushed farther into the networking space in recent years, having scored a number of patents in the area of networking automation and dynamic network resource allocation. A significant driver of this is its service provider business, where some of the company’s competitors – like HP – are attempting to make inroads.

Financial Results, News & Analysis, Open Source, OpenShift, OpenStack, Red Hat

Red Hat says OpenStack, OpenShift deals trebled year-on-year

Red Hat enjoyed a solid fiscal year, with OpenStack and OpenShift

Red Hat enjoyed a solid fiscal year, with OpenStack and OpenShift

Red Hat revealed its fourth quarter 2015 financial this week, reporting revenue of $464m, up 16 per cent year-on-year. The firm also said deals involving OpenStack and OpenShift-based offerings tripled when compared to the fourth quarter 2014.

For the full fiscal year total revenue hit $1.79bn, up 17 per cent on the previous year, and the Linux incumbent reported subscription revenue for the quarter reached $405m, up 15 per cent year-on-year.

“We continued to experience strong demand for our open, hybrid cloud technologies, as evidenced by increased cross-selling in our top 30 deals which were all over $2 million for the first time,” stated Jim Whitehurst, president and chief executive officer of Red Hat. “Customers value the consistency and flexibility as they run their applications using Red Hat solutions across a variety of deployment models, including public and private clouds, to modernize and transform their IT infrastructure.”

In a call with analysts this week Whitehurst also said its OpenStack and OpenShift offerings, as well as Ceph – the storage system provider it acquired last year – are starting to show signs of market acceptance.

“Half of our OpenStack wins are six figure OpenStack wins in the quarter had Ceph as a component. So fully strong affinity between OpenStack and Ceph and our ability to be a credible provider of both, I think helps us do well in both. So we’re seeing a lot of benefit there.”

“The number of times the top 30 deal included OpenStack or OpenShift this quarter tripled from Q4 a year ago. Interestingly, one technology customer expanded their existing OpenShift deal this quarter and we now have our first $10 million plus open shift customer,” he said. “OpenShift has been performing well with customers and momentum is growing.”

OpenShift is currently pitted in a battle for mindshare against Cloud Foundry, another open source platform as a service. Cloud Foundry seems to have gained the lion’s share of vendor buy-in, but Paul Cormier, Red Hat’s executive vice president, products and technology said OpenShift wins over Cloud Foundry when it comes to standards.

“One of the biggest differences is that cloud foundry from the various vendors is it’s very difficult in implementation. So getting applications that are compatible across those different vendors on Cloud Foundry will be challenging for one thing,” he said, adding that OpenShift relies on more tried-and-tested technology standards.

Red Hat enjoyed a solid fourth quarter and fiscal 2015, and it will be interesting to see how the incumbent attempts to keep that positive momentum going. Professional services may be one viable avenue. The company recently created a consulting division that combines technology expertise and consulting resources the firm acquired over the years.

ERP, NetSuite, News & Analysis, Oracle, SAP, Scott Scherr, Software as a service, Ultimate Software, Zach Nelson

Ultimate Software, NetSuite link HCM and ERP clouds

Ultimate Software and NetSuite are integrating their HCM and ERP services

Ultimate Software and NetSuite are integrating their HCM and ERP services

Ultimate Software, a provider of cloud-based human capital management services has inked a deal with NetSuite, a vendor of ERP cloud services, which will see the two companies integrate their software.

The two companies will integrate the UltiPro HCM solution and NetSuite’s ERP suite, which will enable joint customers to manage a broader chunk of their business lifecycles –financials, supply chain, CRM, payroll, HR, and talent management.

“By connecting UltiPro’s rich HR, talent, and payroll capabilities to NetSuite’s suite of ERP applications, Ultimate and NetSuite offer businesses the ability to manage their entire spectrum of business technology needs through two of the most trusted cloud vendors in the world—while enjoying industry-leading functionality, scalability, and configurability—without requiring point solutions for different business applications,” said Scott Scherr, chief executive officer of Ultimate.

“Not only are both our solutions leaders in cloud business technology, but our commitment to culture and service to customers is highly aligned.  We’re excited to bring this partnership to the market,” Scherr said.

Zach Nelson, chief executive officer of NetSuite said: “The combination of Ultimate’s robust HCM functionality together with NetSuite’s system of record for core operational processes provides our customers with a tightly integrated solution to run the core aspects of their business.”

The move suggests cloud ERP vendors are looking to double down on beating the large incumbents at their own game. The SAPs and Oracles of the world have long found that combining ERP and HR platforms make them more attractive to some large enterprises, so any move to bring end-to-end integration of these services in the cloud space will likely be welcome news to born-in-the-cloud firms that are also keen on de-risking their supply chains with multiple vendors.