Monthly Archives: August 2016

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Why CIOs need to be strong in picking a cloud strategy – and sticking to it

(c)iStock.com/Choreograph

This time last year, Fruition Partners, an IT solutions provider, released a report which assessed the state of cloud adoption through the eyes of the CIO. The study bemoaned the rise of shadow IT and gave three best practice tips to control cloud sprawl, by focusing on the user to provide a better service, focusing on business needs, and focusing on IT strategy and how to make better use of IT service management (ITSM).

12 months on and, to quote Led Zeppelin, the song remains the same. 62% of respondents in this year’s report said there were cloud apps being used in the business without knowledge of IT, while almost three quarters (73%) said there was ‘significant’ financial wastage associated with cloud adoption when IT are not involved.

So what needs to be done, and why have things not changed? Paul Cash, UK managing partner at Fruition Partners, which was bought by CSC late last year, argues that despite this year’s offering including insight from US CIOs, the pattern is worrying. “The landscape has changed very little in the last 12 months; we’d expected that with the continued growth in cloud, businesses would have put in place clearer parameters for control,” he tells CloudTech.

The issue with the rise in shadow IT, Cash argues, is the continued antagonism between business and IT; the ‘us and them’ mentality. “Many workers do not feel the IT department understands what digital tools they need, which is why countless employees do not go to the IT department when it comes to procuring cloud services but go it alone,” he says.

“This underlines the fact that CIOs need to get closer to the rest of the business and build relationships with key stakeholders; ensuring they are supporting staff to use technology that lets them work productively, but safely,” adds Cash.

So while the report assesses things from the employees’ perspective – more than two thirds (68%) reportedly do not feel the need to consult IT when procuring cloud services – should more of the spotlight be put closer to home?

A major report released by Harvey Nash and KPMG in May assessed the current and future role of the CIO, arguing that while in the main executives are moving away from the ‘keep the lights on’ mentality, the need for greater technical expertise and the need to work alongside other stakeholders in the C-suite was pushing the job role forward.

“There is a real need for CIOs to be strong in having a cloud strategy, and sticking to it; ultimately, it is up to the CIO to either say no, or to demonstrate how the business can procure and adopt cloud safely,” says Cash. “CIOs will need to possess the qualities that allow them to negotiate and operate at all levels – in order to form broader relationships with all of the business, as well as just the IT department.”

With regard to this year’s report, there has been at least some change. We’ve all heard stories of enterprises with incredible amounts of IT duplication when a bit of clear-headedness would have saved time and money; the 2015 report referenced one company in the construction sector with 300 copies of a cloudy project management tool for 200 employees. But are we still going around in circles?

“The three takeaways – users, business needs, strategy – are still the core areas CIOs need to focus on,” admits Cash. “It’s tough to predict, given things move so quickly in technology and business, but we’d hope next year the results show an improvement in how CIOs are managing cloud alongside their in-house services.”

Read more: Why CIOs cannot ‘blindly trust’ public cloud services in their organisation

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Microsoft Is Making Big Impact with Machine Learning | @CloudExpo #IoT #Cloud #MachineLearning

During the last two years, Microsoft has upped the ante on Machine Learning and Analytics. From hiring top notch data scientists to acquiring niche startups, Redmond has made the all the right moves to transform Azure into one of the best analytics platforms. These investments have started to pay off for the company. It has been successful in articulating and demonstrating the value of data-driven insights to governments, medical institutions, and public sector organizations.

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Canada government releases ‘right cloud’ adoption strategy

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The government of Canada (GC) has published a document advocating the ‘right cloud’ approach as part of its adoption strategy.

The GC document, published here, discusses different approaches to managing security risks, as well as best practices for adoption and a possible future vision for a Canadian public sector community cloud. It argues the ‘right cloud’ is based around the tenet that ‘no single cloud or non-cloud deployment model can meet all of [its] requirements.”

Alongside the typical descriptions of SaaS, IaaS, PaaS, as well as private, public and the like, the section on creating a cloud workforce is of particular interest. The document argues that IT professionals will need enhanced analytical skills, as well as greater business acumen and a better ability to conduct vendor management relations “to ensure that the government receives full value for its funding and full benefits under the contracts or arrangements.”

The GC is also helping to sponsor a Canadian Public Sector Community Cloud (CPSCC), which aims to be a marketplace for public cloud services accredited by the government on a security level.

The move for ‘right cloud’ differs markedly from the UK’s ‘cloud first’ policy for public sector IT launched back in 2013.

“Canadians expect governments to make the most of available technologies to improve service delivery,” said Scott Brison, president of the treasury board in a statement. “Cloud computing will help the Government of Canada get better value for taxpayers’ dollars, become more nimble in its operations, and meet the evolving needs of Canadians.”

Autonomous Vehicles, GPS, Internet of Things, Mapping Technology, News & Analysis, Uber

Uber backs up self-driving car moves with new mapping tech

connected-car-normalUber has announced plans to ‘double-down’ its investments in digital mapping technologies to decrease its reliance on external sources and create a route into the autonomous vehicles sub-sector, reports Telecoms.com.

The move comes after the team announced a $3.5 billion investment from Saudi Arabia’s Public Investment Fund, though possibly wouldn’t come as a surprise though who keep an eye on industry hires. Last year, the team hired Brian McClendon, a former Googler who was part responsible for the development of Google Maps, Earth, Streetview and EarthEngine, who has since been working on the internal Uber mapping solutions. The move also provides more credibility to a company which is planning to enter into the competitive world of self-driving cars.

“Existing maps are a good starting point, but some information isn’t that relevant to Uber, like ocean topography,” said McClendon in a statement on the company website. “There are other things we need to know a lot more about, like traffic patterns and precise pickup and drop off locations. Moreover, we need to be able to provide a seamless experience in parts of the world where there aren’t detailed maps — or street signs.

“The ongoing need for maps tailored to the Uber experience is why we’re doubling down on our investment in mapping. Last year we put mapping cars on the road in the United States. This summer they hit the road in Mexico. Our efforts are similar to what other companies including Apple and TomTom are already doing around the world.”

The company already has an in-house mapping technology, though it has also been using third-party solutions also, including Google Maps. Google and Uber have traditionally been close, Google Ventures invested almost $300 million into the Uber in 2013, though it would appear the team are keen to move away from its reliance on third parties by bolstering its own engineering team. Efforts have focused on the US to date, though the mapping vehicles have begun work in Mexico, with other countries on the list in the future.

A significant area of growth for Uber is customers using the app when they are on holiday or on business trips (i.e. US customers using when travel to Europe or Asia), as opposed to local taxis at the airport. One of the main challenges here is how accurate local maps are in developing nations. Google will likely be making efforts to improve this, though Uber has a more urgent need to improve the accuracy due to its commercial link. This could be seen as enough of a driver in itself.

Back in May, Uber launched a hybrid Ford Fusion into Pittsburgh from its Advanced Technologies Centre (ATC), its first stage of testing its own efforts in the self-driving cars arena. Uber is later to the game than others in the sub-sector, though one of the long-term use cases for the technology is in taxis, public transit and also the transportation of goods. Although a young company, due to its market dominance Uber is a solid position to capitalize on the potential of the sub-sector once the technology is perfected.

Having its own mapping technology gives the organization a sense of credibility in what could prove to be a sensitive sub-sector, but also demonstrates the commitment of the team. Although figures have not been announced, $500 million has been reported as the investment which will be made into the technology.

While the company has not outlined any intentions to be a competitor to Google Maps, it could provide another useful revenue stream for the business moving forward. During the early days of Google’s Geo division, there was no immediate return for the business though this did not stop the internet giant investing heavily into the technology. In the years since, mapping technologies have become an important component of numerous websites and apps, as well as playing a more central role in the day-to-day lives of consumers. Mapping is clearly a very important aspect of an organization such as Uber, though the long-term licensing potential for the technology should the team be able to provide a solution which can compete with Google, could be attractive.

One example of this potential is the on-going Pokémon Go craze, which is continuing to attract users each day. Although a relatively simple game itself, the app combines an augment reality offering alongside Google Maps technology to create such an experience. Numerous other applications and websites use the Google technology also, representing a useful revenue stream which the internet giant currently dominates.

“Over the past decade mapping innovation has disrupted industries and changed daily life in ways I couldn’t have imagined when I started,” said McClendon. “That progress will only accelerate in the coming years especially with technologies like self-driving cars. I remain excited by the prospect of how maps can put the world at our fingertips, improve everyday life, impact billions of people and enable innovations we can’t even imagine today.”

app, Content & Applications, Content Platform, News & Analysis, Video Streaming

YouTube targets small biz and moves up download rankings

Curved video wallApp Annie has released its monthly Index which shows the popularity of dating app Tinder is once again on the rise, YouTube is climbing the content ranks and online video platform iQIYI is fast catching category leaders, reports Telecoms.com.

The App Annie Index highlights the top-performing games and apps for the iOS App Store and Google Play, states online video platform iQIYI has re-entered the top 10 for revenues over June, and has continued to demonstrate strong growth. Last month it announced it had surpassed 20 million paid subscribers to its streaming service, demonstrating Chinese customers are willing to pay for premium content. This news comes only six months after it reached the 10 million mark, and represents a 765% annual increase in the number of paid subscribers.

Although there has been news of restrictions in Chinese press in recent weeks, the attractiveness of iQIYI to consumers might partly be down to relationships which are in place with international organizations. iQIYI often broadcasts popular international shows and currently has content agreements in place with numerous brands including Universal Pictures and Fox. The team would also appear to have international expansion in mind, as it launched a revamp to its iQiyi Taiwan product, as well as capitalizing on the popularity of virtual reality, as it announced its own VR apps and a partner incentive program during its iQIYI World Conference in May.

Virtual reality could represent a significant opportunity in China, though it does in all technologically advanced nations, as the country’s Ministry of Industry and Information Technology believes it could be worth in the region of 55 billion yuan by 2020, approximately $8 billion. Deloitte Global also predicts the VR segment will become a billion dollar industry in 2016, estimating sales of 2.5 million VR headsets and 10 million games worldwide.

From a content perspective, the Index highlights the recent focus on video content is not limited to Facebook and Twitter, as YouTube re-enters the top 10 for content platforms. Facebook still remains top of the rankings for worldwide downloads, though it would appear efforts YouTube has been putting into revamping its content platform in recent months have been paying off, as the US leads the charge with a wave of new downloads across the month.

One of the new initiatives launched by the YouTube team was Director Onsite, a project which helps small business owners create content for advertising on the platform. For those who commit to $150 of advertising spend, a YouTube approved film director will visit the business and shoot a short promotional video to be used on the platform. The initiative is one of numerous activities from the wider Google business, which seems keen on attracting more small and medium sized business to continue the growth of advertising revenues.

“With respect to consumers, we continue to invest in innovative opportunities that create great experiences and improve their lives,” said Alphabet CFO Ruth Porat, during the company’s quarterly earnings call. “And we’re empowering small businesses globally by providing greater reach to customers, not just in their towns, but across countries and around the world.”

Tinder also saw a slight increase across the month, confirming its place as the highest revenues for the dating app segment. In June, it was the most-used app in the Lifestyle category on iPhone in the 13–24 year old demographic in the US, with only one other dating app featuring in the top five. While Tinder is one of the more recognized brands for millennials, it would be worth noting its target audience is limited to those aged 18 and above, and for the most part are single, while the vast majority of other apps in the rankings have much wider demographics.

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Five ways Brexit is accelerating AWS and public cloud adoption

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Deutsche Bank estimates AWS derives about 15% of its total revenue mix or has attained a $1.5B revenue run rate in Europe, while AWS is now approximately 6x the size of Microsoft Azure globally according to Deutsche Bank.

These and other insights are from the research note published earlier this month by Deutsche Bank Markets Research titled AWS/Cloud Adoption in Europe and the Brexit Impact written by Karl Keirstead, Alex Tout, Ross Sandler, Taylor McGinnis and Jobin Mathew.  The research note is based on discussions the research team had with 20 Amazon Web Services (AWS) customers and partners at the recent AWS user conference held in London earlier this month, combined with their accumulated research on public cloud adoption globally.

These are the five ways Brexit will accelerate AWS and public cloud adoption:

  • The proliferation of European-based data centres is bringing public cloud stability to regions experiencing political instability. AWS currently has active regions in Dublin and Frankfurt, with the former often being used by AWS’ European customers due to the broader base of services offered there. An AWS Region is a physical geographic location where there is a cluster of data centers. Each region is made up of isolated locations known as availability zones. AWS is adding a third European Union (EU) region in the UK with a go-live date of late 2016 or early 2017. Microsoft has 2 of its 26 global regions in Europe, with two more planned in the UK.  Google’s Cloud Platform (GCP) has just one region active in Europe. The following Data Centre Map provides an overview of data centres AWS, Microsoft Azure and GCP have in Europe today and planned for the future.

Data Center Map

  • Brexit is making data sovereignty king. European-based enterprises have long been cautious about using cloud platforms to store their many forms of data. Brexit is accelerating the needs European enterprises have for greater control over their data, especially those based in the UK.  Amazon’s planned third EU region based in London scheduled to go live in late 2016 or early 2017 is well-timed to capitalise on this trend.
  • Up-front costs of utilising AWS are much lower and increasingly trusted relative to more expensive on-premise  IT platforms. Brexit is having the immediate effect of slowing down sales cycles for managed hosting, enterprise-wide hardware and software maintenance agreements. The research team found that the uncertainty of just how significant the economic impact Brexit will have on the European economies is making companies tighten capital expense (CAPEX) budgets and trim expensive maintenance agreements.  UK enterprises are reverting to OPEX spending that is already budgeted.
  • CEOs are pushing CIOs to get out of high-cost hardware and on-premise software agreements to better predict operating costs faster thanks to Brexit. The continual pressure on CIOs to reduce the high hardware and software maintenance costs is accelerating thanks to Brexit. Because no one can quantify with precision just how Brexit will impact European economies, CEOs, and senior management teams want to minimize downside risk now. Because of this, the cloud is becoming a more viable option according to Deutsche Bank. One reseller said that public cloud computing platforms are a great answer to a recession, and their clients see Brexit as a catalyst to move more workloads to the cloud.
  • Brexit will impact AWS Enterprise Discount Program (EDP) revenues, forcing a greater focus on incentives for low-end and mid-tier services. Deutsche Bank Markets Research team reports that AWS has this special program in place for its very largest customers. Under an EDP, AWS will give price discounts to large customers that commit to a full year (or more) and pay upfront, in many cases with minimum volume increases. One AWS partner told Deutsche Bank that they’re aware of one EDP payment of $25 million. In the event of a recession in Europe, it’s possible that such payments could be at risk. These market dynamics will drive AWS to promote further low- and mid-tier services to attract new business to balance out these larger deals.
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Key to productivity HP Thin Clients & Parallels RAS

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FalconStor’s SDS | @CloudExpo @FalconStor #DataCenter #SDS #SDN

Let’s face it, embracing new storage technologies, capabilities and upgrading to new hardware often adds complexity and increases costs. In his session at 18th Cloud Expo, Seth Oxenhorn, Vice President of Business Development & Alliances at FalconStor, discussed how a truly heterogeneous software-defined storage approach can add value to legacy platforms and heterogeneous environments. The result reduces complexity, significantly lowers cost, and provides IT organizations with improved efficiencies, all while delivering real freedom and flexibility. Come learn how to #BeFree.

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