With the new Kubernetes offering, ClearDATA solves one of the largest challenges in healthcare IT around time-to-deployment. Using ClearDATA’s Automated Safeguards for Kubernetes, healthcare organizations have access to the container orchestration to dynamically deploy new containers on demand, monitor the health of each container for threats and seamlessly roll back faulty application updates to a previous version, avoid system-wide downtime and ensure secure continuous access to patient data.
Monthly Archives: February 2019
Google acquires Alooma to bolster cloud migration efforts
Google has announced plans to buy cloud migration company Alooma in a bid to boost its cloud migration capacities.
In a blog post, Amit Ganesh, vice president of engineering at Google, said that the addition of Alooma, subject to closing conditions, “is a natural fit that allows us to offer customers a streamlined, automated migration experience to Google Cloud, and give them access to our full range of database services, from managed open source database offerings to solutions like Cloud Spanner and Cloud Bigtable”.
“This simplified migration path also opens the door for customers to take advantage of all the technologies we have to offer, including analytics, security, AI and machine learning,” he said.
Alooma was founded in 2013 and specialises in Extract, Transform, Load (ETL) applications. This enables users to pull in data from many sources, including Oracle, Azure, and SaaS providers such as SalesForce and mapping this data to data warehouses such as Redshift and BigQuery.
The deal would bring ETL services to Google Cloud. Amazon and Microsoft have ETL services in the form of Azure Data Factory and AWS Glue.
In a blog post, Yoni Broyde and Yair Weinberger, co-founders of Alooma, said the acquisition is the evolution of their company’s long-standing partnership with Google Cloud.
“It follows several native integrations, over the years, from Google Ads and Analytics to Cloud Spanner and BigQuery,” they said.
“We believe that as part of Google Cloud — bringing together the best-in-class data migration and integration services — we can make our customers and partners even more data-driven and successful.”
The co-founders added that the move would bring the company closer to delivering a full self-service database migration experience bolstered by the power of their cloud technology, including analytics, security, AI, and machine learning.
The terms of the deal were not disclosed nor was a date for when the acquisition will be finalised.
Four reasons why your company might not be ready for DevOps just yet
Let’s get one thing straight: I’m a huge fan of DevOps. It has been shown to increase quality, reduce problems, and shorten development cycles. It’s often considered a panacea for large organisations looking to transform their development, production and operational lifecycles. But is it right for every business? Companies that do it successfully can reap the benefits of continuous deployment and testing, but companies that fail get trapped in endless loops of missed deadlines.
There are some criteria that any IT team should investigate before making the transformational shift to CI/CD. It involves taking a hard look at the existing culture, process, and even management style. There’s no shortage of ink spilled on articles that try to convince you why DevOps is the future. Instead, I want to focus on when and why DevOps doesn’t work to truly help identify if it’s right for you.
Is the culture ready?
Because the transformation to DevOps is simultaneously a change in process, tools, and philosophy, it requires a cultural shift in collective mindset that’s fraught with potential failure. DevOps success relies on three Cs: communication, collaboration, and coordination between different teams (including software developers, quality, operations teams, and executive stakeholders). The first challenge is to understand and unpack how these groups are aligned and interrelated. Then, the executive leadership must develop a working model of communication between them with incremental milestones to gradually shift culture toward more openness and connectivity.
If your business is too siloed or relies on legacy organisational structure, chances are good that this cultural shift may prove to be too difficult. I’ve seen it often fail in large organisations with entrenched leadership or processes. Some companies could be hundreds of years old, while others could be the latest and greatest modern organisations that are simply stuck in their existing ways. And if the culture won’t change, then the actual DevOps process is ultimately doomed.
Can the structure handle it?
DevOps is highly culture-dependent, but it also requires a shift in how software is architected, built, tested and deployed. At first, this may seem like common sense, but in reality, it’s often not discussed during the transition.
Monolithic software architecture with complex dependencies between different layers and teams can cause a DevOps evolution to struggle and fail. Often, quality is sacrificed in the name of agility and speed. Organisations using a modern, cloud-native microservices architecture are typically more successful in adopting a DevOps practice. In these organizations, product or service teams can operate independently while staying aligned toward the ultimate business goals or customer experience objectives. The company is already broken into purpose-built sprint pipelines that can move with agility.
Where to begin? Identify the warning signs
Before building your DevOps roadmap, it’s critical to spend some quality time soul-searching and stress testing your organisational culture. If you see any of these, you might face some steep uphill challenges in your evolution:
- Your company has a well-defined process: Companies that are already in love with their culture and software development process will cling to it with white knuckles. These companies resist change and might not fit the DevOps profile
- Your company wants to dive in head first: If your company just wants a DevOps process because it’s trendy and innovative, you might not be ready for it. Proper implementations require a true understanding of business outcomes with pros and cons. Remember, it’s a mindset, not just a movement
- Your company wants a “department of DevOps”: Trying to create DevOps as a separate department, without bringing current Dev and Ops teams together, is a recipe for failure. DevOps isn’t a side hustle. It’s transformational
- Your company has fiefdoms: Organisations whose Development and Ops teams are highly distributed and isolated from each other could struggle to bring them together without providing each team with some common leadership.
In short, DevOps must become the culture of the organisation, driven by the CEO and his/her team of functional and organisation leaders with a clear understanding of the implications and outcomes. It’s a mindset that requires a transformation in process, organisation, technology, and information to drive a meaningful, sustainable change. The rewards are huge. But as with any potential upside, your company will have to work for it.
Interested in hearing industry leaders discuss subjects like this and sharing their experiences and use-cases? Attend the Cyber Security & Cloud Expo World Series with upcoming events in Silicon Valley, London and Amsterdam to learn more.
Google Cloud acquires Alooma to bolster enterprise data migration capabilities
Google Cloud chief executive Thomas Kurian promised an aggressive approach to enterprise cloud strategy going forward – and the company has immediately put its money where its mouth is with the acquisition of California and Tel Aviv-based startup Alooma.
Alooma aims to solve a key problem for enterprise organisations in their move to the cloud by offering a single data pipeline which is able to crunch data from various sources, from Snowflake, to Google-tied BigQuery, Azure and Amazon RedShift, to provide real-time insights.
The company, which had received around $15 million across three funding rounds during its tenure, had previously been a long-term partner of Google with several native integrations, from Google Ads and Analytics to database service Cloud Spanner, not to mention BigQuery. Its roster of customers includes OkCupid, Sony, and The New York Times, which already uses Google App Engine for its gaming platform, having moved from Amazon Web Services (AWS) in 2017.
In a letter to Alooma’s customers and partners, published on the company’s blog, founders Yoni Broyde and Yair Weinberger noted the evolutionary nature of the acquisition. “The journey is not over,” Broyde and Weinberger wrote. “Alooma has always aimed to provide the simplest and most efficient path toward standardising enterprise data from every source and transforming it into actionable intelligence.
“Joining Google Cloud will bring us one step closer to delivering a full self-service database migration experience bolstered by the power of their cloud technology, including analytics, security, AI, and machine learning,” they added.
From Google’s perspective the acquisition focuses on three primary areas; the need for open source, the continued enterprise push, as well as bolstering its Israel presence. Writing in a blog, VP engineering Amit Ganesh and director of product management Dominic Preuss noted parallels with Google’s acquisition of cloud migration provider Velostrata last year, which ticked all three boxes.
Earlier this month, Kurian told delegates at a Goldman Sachs conference of his vision for the company and how its cloud offering differs from the likes of AWS and Azure. These were, in order, security and reliability for mission critical applications; hybrid and multi-cloud; ‘very advanced’ AI solutions; ‘vastly different’ capabilities for managing data at scale; and ‘integrating a number of Google’s technology advances with cloud to deliver industry solutions.’
The proposed acquisition of Alooma certainly focuses on managing data at scale, as well as promised initiatives around AI and machine learning – so watch this space.
Financial terms of the acquisition were not disclosed.
Interested in hearing industry leaders discuss subjects like this and sharing their experiences and use-cases? Attend the Cyber Security & Cloud Expo World Series with upcoming events in Silicon Valley, London and Amsterdam to learn more.
Why DevOps is the future of your business
If you’ve spent any time at all in the IT world, you’ll likely have heard about DevOps and how it’s the future of enterprise software development. Companies both large and small have adopted DevOps processes and methodologies as part of their organisation, chasing faster development cycles and greater application stability.
For the uninitiated, DevOps is a software development method that involves merging development and operations teams together. The goal is to shorten the time it takes to build, patch, and update software by monitoring and testing it as it’s being built. This allows problems to be caught earlier, leading to a shorter time-to-market.
Multiple advantages
DevOps has a number of advantages over traditional software development approaches like the waterfall method. The first and most obvious is speed; DevOps can radically accelerate development cycles, which means software can be delivered to users faster.
“Reducing the time between inception and value when delivering services is the key benefit,” says Guy Smith, CDW’s head of technology solutions. “In addition, bringing application developers closer to the operational challenges of running a live system can provide a useful feedback loop that results in applications that are designed to be operated, with consideration for proper abstraction, state handling, failure tolerance, and simple scaling.”
Because it’s also based around smaller and more frequent releases, users can also get used to new changes gradually, rather than having to acclimatise to lots of new things at the same time. It’s also easy to roll back to a previous version in the event of an unexpected bug and ensures that fixes for said bug can be issued faster. This shouldn’t be required that often, though, as DevOps generally has a lesser failure rate than waterfall development.
In many ways, DevOps is the cornerstone of digital transformation. Among the most common goals of a digital transformation project is for the company to become software-driven, with an agile approach to both its strategy and its IT, and DevOps is essential for all of those goals. Without being able to rapidly iterate on the software and apps that a business creates, it can’t be truly agile or software-driven, as it will constantly be behind the curve and slowed down by clunky, outdated methodologies.
Many major organisations have already embraced DevOps as a way to speed up their software pipelines; Companies like Hertz, American Airlines, Accenture and more have all implemented DevOps methodologies, using them to drive greater efficiencies, faster workloads and more frequent releases.
‘Digital Disruption’ dives into the findings of a roundtable with industry experts about the future of technology in the workplace, and looks at the strategies needed to thrive in an era of unprecedented change.
An agile world
DevOps isn’t just applicable to IT, however. It’s closely tied to the agile movement, and many of its principles are effective across the business as a whole. Take the Scrum method, for example; this framework involves taking a project-based approach to solving business challenges.
A cross-functional team is created, made up of members from every relevant area of the business. The team establishes the end goal of the project, then works towards accomplishing this goal in a short series of ‘sprints’ lasting from two to four weeks, in which a small series of tasks are devised, planned, completed and tested.
The idea is to break a project up into more manageable chunks, with regular testing and monitoring throughout the process. Although this is generally applied to software development, it can be equally suited to projects like marketing campaigns, IT refreshes or quarterly reporting efforts.
Implementing DevOps can be extremely beneficial for a business, but it can be a rather daunting undertaking too, especially for a mature, established organisation that already has a more traditional development structure in place. As with any major organisational change, it’s crucial to ensure that the implementation is meticulously planned out beforehand and carefully managed during the roll-out itself.
“Be really clear about what problem you’re trying to solve and exactly how the new model will improve service delivery to users,” Smith says. “It’s very easy to get sucked into the dogma and fashion of DevOps/Agile but it isn’t always the appropriate approach or done with the end-user in mind. In addition, clear expectations need to be set about where responsibility lies, not just with ‘make stuff live faster’ but how real world problems such as bugs, operational issues and security incidents will be dealt with at 3am.”
Are you ready for DevOps?
One of the most important elements of moving to a DevOps approach is making sure the culture and management style of the organisation is ready to support it by obtaining buy-in from all the necessary stakeholders within the business and establishing a set of guiding principles that everyone is on board with. Beyond that, however, there are a number of technical tools which comprise the foundation of a successful DevOps organisation.
Version control systems, for example, are the bedrock of DevOps. One of the most essential principles of DevOps is rapidly deploying code, testing it to see if it works and then rolling it back and trying again if it doesn’t. By using a version control system like Git, CVS or Team Foundation Version Control, this process is made infinitely easier, allowing you to easily track iterations of code and work collaboratively on them without having to manually shuffle between multiple near-identical files.
Similarly, code-sharing platforms like Github or the aforementioned TFVC are a must-have for any DevOps team. Close collaboration is essential for speedy software releases, and the ability to have an entire DevOps team collaborating simultaneously on one piece of code will make the process much, much faster. Modern code-sharing platforms will also integrate with a swathe of other tools to help speed up and automate your workflows.
Continuous integration and continuous delivery (CI/CD) tools, for example, are another essential part of the DevOps toolchain that work in concert with code-sharing platforms and version control systems. Tools, such as Jenkins, are designed to automatically assemble and test a new build of a piece of software every time a developer commits a change to the version control system. This ensures that developers working on different features don’t accidentally break each others’ work when they commit changes to the main branch, resulting in fewer bugs and faster working releases.
Another key pillar of DevOps is Infrastructure as Code. This principle involves treating the various components of infrastructure – such as VMs, networks, and so on – in the same way as the code that’s running on it. New environments are spun up according to a pre-set template using the same version control model as the code itself, which means all your environments will be identical unless expressly designed to be different.
DevOps teams will need to spin up new test environments quickly and often, and spinning them up and administering them manually can mean that, over time, you’re left with a large number of environments which are all subtly different to each other. This can often lead to deployment issues, but using Infrastructure as Code platforms like Puppet prevents this by ensuring consistency across your environment.
Every organisation is different, and building the right DevOps toolchain can be a tricky business. Working with a skilled partner, however, can dramatically reduce the complexity and hassle of implementing a DevOps structure. CDW can offer not just the toolsets you need to get your DevOps pipeline moving, but also the expert strategic guidance to help make your DevOps journey a success from the word go.
“CDW can help you navigate the challenges of delivering services quickly, cost-effectively and securely whilst focusing on user-need,” explains Smith. “We have a significant breadth and depth of products, in-house expertise and partner relationships that allow us to think ‘outcome first, approach/tool second’ and provide solutions that offer true business benefit.”
To learn more about CDW Cloud Services, download your free guide or contact CloudEnquires@uk.cdw.com
Cloud resources are increasingly targeted by cyber criminals
Hackers are increasingly aiming cyber attacks at cloud infrastructure, using it as an entry point to drive other attacks and relying on employees and businesses to misconfigure their infrastructure, leaving it open to attack.
That’s according to cyber security firm Symantec’s latest Internet Threat Security Report, which noted misconfigured servers and cloud infrastructure are providing tempting targets for cyber criminals.
“The same security mistakes that were made on PCs during their initial adoption by the enterprise are now happening in the cloud<” Symantec’s report explained.
“A single misconfigured cloud workload or storage instance could cost a company millions of dollars or land it in a compliance nightmare. In the past year alone, more than 70 million records were stolen or leaked from poorly configured S3 buckets. There are also numerous, easily-accessible tools that allow attackers to identify misconfigured cloud resources on the internet.”
The security company explained that hardware chip vulnerabilities, which can be found in the systems that underpin cloud infrastructure, such as Meltdown, Spectre, and Foreshadow are also exposing data to criminals.
The reason for cloud infrastructure to increasingly draw the eye of cyber criminals is that they are looking for alternative ways to generate income. as returns from ransomware and cryptojacking attacks are reducing.
The report noted that cyber criminals are also increasingly targeting online retailers to steal customer details using methods such as formjacking.
Formjacking allows criminals to steal user card data while they’re shopping online. It involves injecting code into badly-secured checkouts on retailer websites used to steal card details.
Symantec reported that more than 4,800 unique websites are injected with malicious code used in such attacks every month and it had blocked 3.7 million attempts to use such methods to steal card details in 2018.
“Formjacking represents a serious threat for both businesses and consumers,” said Greg Clark, CEO at Symantec.
“Consumers have no way to know if they are visiting an infected online retailer without using a comprehensive security solution, leaving their valuable personal and financial information vulnerable to potentially devastating identity theft. For enterprises, the skyrocketing increase in formjacking reflects the growing risk of supply chain attacks, not to mention the reputational and liability risks businesses face when compromised.”
During 2018, Symantec revealed that the number of hackers using more traditional methods of disrupting a company’s infrastructure, such as ransomware and cryptojacking had decreased significantly in 2018.
The reasons for this, Symantec cited, was that the value of cryptocurrency has reduced significantly and more businesses are adopting mobile and cloud computing, which makes attacks “less effective”.
Exploring a data-centric approach to data privacy as cloud workloads proliferate
If your organisation, like many others, is putting more and more data into the cloud, you will already know that it’s probably making your security team have kittens. Greater amounts of data being transported in real-time – not to mention the vastly increased number of mobile devices and attack vectors – means the chances for catastrophe have proliferated.
A new study from data protection provider Virtru has looked at the steps for taking a ‘data-centric’ approach to data protection and privacy. The report, conducted by Forrester Research and which polled more than 200 director, VP and C-suite employees across security, risk and IT, argues organisations’ current IT priorities are conflicting – and that data protection is not high on the list.
Almost half (46%) of those polled said that they were adopting a data-centric approach to data protection because they were putting more and more business data into the cloud. The same number said they were particularly concerned around protecting data from cybercriminals, as well as insider theft and abuse.
When it came to the primary capabilities organisations needed to execute data-centric protection, 85% of respondents said enforcing access control was either critical or very important. Encrypting data stored in cloud drives (79%), as well as encrypting data in motion and at rest within the enterprise (79%), were also highly cited.
The key issue in putting this important approach across is prioritisation. For those polled, the key aim this year is to deliver IT projects more quickly (45%). 41% said a major aim was to better comply with privacy regulations, while shifting resources to improve the customer experience (37%) and increasing the business’ role in defining the priorities of IT investments (35%) were also cited.
Naturally, there is an impasse between those who see the need for greater productivity in the organisation and those who see greater security. 39% said they feared data privacy controls would hinder productivity, while a third (34%) said their companies lacked staff with sufficient data privacy expertise. 30% said there was confusion around the differences between data privacy and security.
Yet there are a multitude of benefits to a data-centric protection approach. Almost half (49%) of those polled said the move would improve their organisation’s ability to meet regulatory requirements, while reduction of data theft (47%) and lowered risk of data loss (47%) were also key.
“As IT organisations seek to find ways to deliver on their initiatives more quickly and with a greater focus on regulatory compliance, many struggle to keep these two objectives from conflicting with one another,” the report concluded. “To address these challenges, firms are turning to data-centric data protection solutions, while seeking to overcome challenges with costs, use, and integration that can arise with onboarding new technologies.
“Putting data security and privacy front and centre will help firms realise numerous benefits like improved customer and partner relationships and lower risk of a data incident,” it added. “Failing to properly secure your data puts customer trust, the business’ reputation, and considerable revenues and potential penalties at risk.”
Interested in hearing industry leaders discuss subjects like this and sharing their experiences and use-cases? Attend the Cyber Security & Cloud Expo World Series with upcoming events in Silicon Valley, London and Amsterdam to learn more.
Which Serverless Platform Is For You? | @KubeSUMMIT #DevOps #CloudNative #Serverless #AWS #Docker #Kubernetes
In 2014, Amazon announced a new form of compute called Lambda. We didn’t know it at the time, but this represented a fundamental shift in what we expect from cloud computing. Now, all of the major cloud computing vendors want to take part in this disruptive technology.
In his session at 20th Cloud Expo, John Jelinek IV, a web developer at Linux Academy, will discuss why major players like AWS, Microsoft Azure, IBM Bluemix, and Google Cloud Platform are all trying to sidestep VMs and containers with heavy investments in serverless computing, when most of the industry has its eyes on Docker and containers.
Slack’s five-year-long fight against email is about to get more complicated
After just five years on the market, Slack has become one of the most popular workplace communication apps, garnering over 10 million daily active users in 150 countries around the world. However, executives tell us that the platform plans to expand its business footprint even further in the years to come.
Slack has experienced rapid growth in terms of its users and as a company. About 500,000 organizations use Slack today, as well as 85,000 premium business subscribers – which includes 65 of the Fortune 100. That’s an increase of over 50% in the past year alone.
That hasn’t happened by accident. Slack has been somewhat aggressively asserting its dominance in a market that’s relatively saturated, and it’s clear it has no plans of slowing down. The company sees itself as an all-encompassing workplace communication platform, one that will act as a portal for all the various other services you might use. You won’t need any other application, because Slack will have them all.
That’s the message, and it’s one Slack is acting upon. The company unexpectedly announced the takeover of Astro, a startup developing an email platform with a built-in smart assistant, only to then announce it would be swiftly killing off its email component. Somewhat ironically, it’s clear Slack is gearing up to introduce its own email features despite years of railing against the seemingly outdated form of communication. What’s unclear is whether that’s a separate platform integrated with the Slack app, or features built right into Slack itself.
Freemium Foundation
The company will achieve this omnipotent status, it says, by taking advantage of its “freemium” model and the “virality” it ensures.
Slack can be used for free, with more features available for a monthly per-user fee. With the free version, you search up to 10,000 messages, make one-to-one video calls and install up to 10 apps and integrations – meaning you can get a pretty productive workday out of Slack without paying anything.
Perhaps more importantly, though, the free package also introduces many people to the platform and increases the odds that someone hears about it through word of mouth. Because the freemium model introduces so many people to the platform, there’s not a lot of barriers to entry.
Stuart Templeton, Slack’s Head of UK, explains to Cloud Pro that it’s this accessibility that’s proving to be a critical first step in introducing new users to the platform.
“As a company that goes to market in a ‘freemium’ way, I don’t think you can underestimate the power of virality,” says Templeton. “Our job is to ensure people have heard about [Slack] and are getting success, because that success drives monetisation, but it also drives viral adoption as well.”
Of the 8 million daily active users that Slack now boasts, 3 million of these are paid. These stats are reflected in the UK Slack market, which Templeton heads, with 45% of UK users now paying a monthly subscription, making it the country with the highest monetisation rate in Europe.
Virality
That’s one success Slack can shout about, but it’s not one that can inherently translate to growth. For that, it hopes to rely on the ‘viral nature of positive experiences’ – in other words, happy customers will tell their friends.
“We believe we’ve got an addressable market of around 600 million knowledge workers,” says Templeton. “So, we’ve got an enormous opportunity ahead of us.”
He explains that when successful paying customers share their positive experiences with other Slack users, they encourage others to become paying customers as well. Thus, the interconnectedness of Slack inherently boosts its business footprint.
It’s this idea of positive experiences that has led the company to become heavily invested in frequent software updates, including features like allowing Slack users to manipulate how often and where they receive notifications.
Templeton explains that because ‘Slacking’ is messaging-based, some users might initially feel overwhelmed with notifications. In a nod to Slack’s yet-to-be-confirmed email ambition, he believes that messaging on the platform should be thought of as similar to sending emails – the idea that users shouldn’t feel obligated to instantly reply to messages.
“It’s very important that people know we’ve got focus mode, that you could turn off your notifications by channel, that you can turn them off completely,” explains Templeton. “But, if you want to get a notification, it’s really important that you get it and that you get it on any device.”
Avoiding downtime
Another way Slack strives to improve customer satisfaction is through integrations. According to Templeton, there have been 8.8 million app installations from the Slack directory to date. It currently has about 1,500 apps available for download, and 95% of paid teams are using integrations.
“It can be from website visitors hitting the marketing channel to take friction away from marketing work, or leads to salespeople being rooted to the right place so they can respond to customers faster, or bug notifications coming from ServiceNow or Jira into Slack to make people work faster.”
This makes it easier for people to communicate and ultimately get their work done, Templeton argues, and while this is inherently what Slack, as a collaboration tool, is supposed to do, it is also serving as an important marketing strategy for the company.
Yet, in order for this business model to work, Slack users have to be having a positive experience. The company has been fortunate in that downtime has become a fairly rare occurrence – there has only been one major outage in the past year, although connectivity was restored in a matter of hours.
It’s also managed to avoid any major data breaches, aside from the discovery of a vulnerability in 2017 through its bug bounty programme, and the platform was one of the first to introduce sweeping data protection changes as part of the introduction of GDPR in May 2018.
Melting the Iceberg
Templeton compared Slack’s future to an iceberg. As the company’s customers continue to grow, its integrations and features – its strongest marketing assets – will do the same.
“If there’s a water level on that iceberg, of course below that water line, you’re going to have to go into those business applications to get your jobs done,” he said. “Over time, you’re going to see that water line drop, so that you can surface more and more sophistication into Slack, which will further take the friction out of people’s work.”
Slack prides itself on its ability to offer an unrivalled suite of integrations for its users, yet it’s clear that it has some way to go before the platform becomes ubiquitous in business collaboration. In order to address that hurdle, Slack will need to branch out, starting first with better support for email platforms.
Slack as the ’email killer’ never quite materialised, but, as the old saying goes, if you can’t beat them, join them.
How channel partners are set to drive new cloud computing growth
The worldwide cloud computing infrastructure market had another strong quarter in Q4 2018, as spending grew 46 percent to nearly $23 billion. The total outlay on cloud infrastructure in 2018 exceeded $80 billion – that's up from $55 billion in 2017 according to that latest market study by Canalys.
This investment makes cloud computing services one of the most important sectors in the IT industry, not just by the rate of growth, but also due to its expanding size.
Cloud computing infrastructure market development
Amazon Web Services (AWS) remained the dominant cloud service provider in Q4 2018; its market share of customer spend unchanged at 32 percent. Microsoft Azure grew its share to 16 percent against 14 percent in the same period a year ago. Google Cloud reached 9 percent for the first time, while Alibaba Cloud maintained its 4 percent share.
IBM, Salesforce, Oracle, NTT Communications, Tencent Cloud and OVH rounded out the top 10 cloud service providers.
"Cloud infrastructure services provide the core components needed to support digital transformation initiatives around building new customer experiences, deploying IoT to transform processes, using big data and analytics for better insights, and embedding machine learning and AI for automation,” said Matthew Ball, principal analyst at Canalys.
Market dynamics have changed over the last 12 months, with more businesses opting for multi-cloud and hybrid IT environments to use the strengths of different cloud service providers and deployment models dependent on application and data requirements, compliance, cost and performance.
The role of channel partners in cloud services is growing in importance as a direct result of these trends. In particular, understanding customer requirements, recommending services, deployment and integration, as well as simplifying the billing and management of multiple cloud services.
According to the Canalys assessment, cloud service providers are placing greater emphasis on building channel programs to support the growing network of partners beyond the largest systems integrators, especially as they extend to mid-market and SMB customers.
Canalys expects the share of cloud business supported by or with channel partners to increase in 2019. Cloud service providers must therefore find new ways to improve their own differentiation to partners and raise the maturity of their channel models.
Outlook for cloud channel partner innovation
Canalys expects a greater focus on rewarding partners with specialist expertise around specific cloud deployments, such as SAP HANA, analytics or security; on partners developing unique services on top of cloud; and on those driving customer adoption of cloud services.
Cloud service providers should build trust with their channel partners and not implement initiatives or change terms and conditions that drive more direct sales, according to Canalys. Instead, they must offer superior marketing resources that enable channel partners to differentiate hybrid multi-cloud service capabilities in this very competitive marketplace.
Interested in hearing industry leaders discuss subjects like this and sharing their experiences and use-cases? Attend the Cyber Security & Cloud Expo World Series with upcoming events in Silicon Valley, London and Amsterdam to learn more.