All posts by Business Cloud News

Backup, Content & Applications, News & Analysis, Retail, Smartphone, Synchronoss

Cloud backup could save phone retailers days of support time – study

contentCloud-based backup and transfer systems could save 7.3 wasted lifetimes, according to recent 451 Research into the time consuming inefficiencies of modern phone sales, reports Telecoms.com.

American consumers lost 4.5 million hours waiting for their content to be transferred between their old and new smartphones in-store this holiday season, according to the study conducted on behalf of Synchronoss Technologies. That wasted time converts into 187,500 days, 514 years or 7.3 wasted human lifetimes. Cloud based backups, which run in the background, will give smart phone users their lives back, Synchronoss claims.

As 59% of Americans buy new smartphones in physical stores, and each customer now has an average of 10.8GB of picture files, videos and games to transfer over the in-store Wi-Fi connecting their old and new devices, waiting times are likely to get increasingly long, according to Synchronoss. The picture is largely the same in Europe, with 64% of sales in the UK being conducted in store and with an even bigger proportion, 67%, in France. The store channel was used by 62% of Germans, 51% of Italians and 65% of Spanish phone purchasers.

In the study, conducted independently by 451 Research over the holiday season, 33.3 million devices were sold in that period throughout the US and 19.6 million of them were bought in a shop, with 23% of these shoppers asking the sales reps to transfer their personal content for them. At a transfer rate of 10.8GB per hour, that equates to a 4.5 million hours of waiting time.

Device financing, leasing and accelerated upgrade programmes will only make the demand for upgrades – and the subsequent waiting time situation – worse, according to Synchronous, which argued that its new cloud based Backup & Transfer service is the answer.

“Carriers and retailers must deploy backup and transfer solutions so customer content is securely hosted in the cloud before they walk into stores and can be ported to a new device at any time,”

said Daniel Rizer, Synchronoss’s EVP of Product Management.

acquisition, BTI Systems, Juniper Networks, M&A, News & Analysis, Telco Cloud

Juniper Networks buys telco cloud vendor BTI Systems

business cloud network worldData centre infrastructure vendor Juniper Networks is to buy BTI Systems, a specialist developer of software-defined networking (SDN) tools and networking hardware, reports Telecoms.com.

The acquisition was announced on Juniper’s website which gave no details of the terms of the deal. However, in a comparable takeover in 2012, Juniper paid $176 million when it bought SDN startup Contrail. In its statement Juniper explained its need to speed up the delivery of open and automated packet optical transport systems, as demand for cloud services booms.

Juniper’s General Manager of Development Jonathan Davidson said Juniper will integrate the new SDN tools with its NorthStar Controller and use the new network management features to create new end-to-end services.

The move may affect cloud service providers as it gives owners of multiple data centres a new option for juggling huge volumes of data within their own data centre estate. BTI’s data centre and service provider clients include top tier operators such as Equinix, Interxion, Rackspace and VKontakte. It has a client base of 380 data centre operators and cloud service providers.

Since BTI specializes in cloud and metro networking, in which large volumes of content are shifted between data centres concentrated in the same town or city, the new technology addition could position Juniper more favourably when tendering against Cisco and Arista.

Ottowa based Canadian network BTI has previously raised $60 million in venture capital from backers including Bain Capital Ventures, Export Development Canada and Fujitsu Network Communications.

The acquisition is subject to customary closing conditions and the expected date for transaction closure was given as ‘Q2 of this year’.

FedRAMP, Government, News & Analysis, Policy and Regulation, Public Sector, US

US FedRAMP has turned into a slow lane for government cloud says protest group

Fedramp logoA cloud industry protest group has called on the US government to fix its FedRAMP process for certifying government cloud service providers. The inefficiencies of the system are neutralising any benefits the cloud can bring to the US taxpayer, it claims.

A collective of disgruntled agents, that ranges from top tier cloud operators such as AWS, IBM and HPE to support agencies and corporate lawyers, has appealed for a review of the Federal Risk and Authorization Management Program, a certification process that has been dubbed FedRAMP.

Though FedRAMP was designed to simplify the use of cloud services by government agencies, the system has been described by a cloud industry advocate group as ‘fundamentally broken’. An aggrieved group of cloud players calling itself FedRAMP Fast Forward claims that a simple system, for helping US civil servants to select between FedRAMP-certified providers, has become too complicated and unwieldy. The pressure group has proposed a six point plan to address the system’s lack of clarity, high costs and lack of accountability.

The promised ‘certify once, use many times’ framework has not been delivered, claims the pressure group. Instead, the system has become expensive and time-consuming to use. As a result, the planned government savings from using cloud services are unlikely to materialise, says the group.

One of the reported problems is that the system does not provide the level of monitoring and management that cloud service providers would expect from any service. Potential suppliers to a government tender cannot gauge their status in the approval process or get feedback on the how to improve things or move the process to its next stage, according to a group statement. Agencies have also complained that they can’t see where the listed authorised cloud services might operate.

The Cloud Computing Caucus, a cross party group of US Congress Members, claims that the certification process is now nearly three times as lengthy as it first was. Worse, it can be 20 times more expensive. The group’s latest annual report says certification time has gone from nine months to two years, on average, while the typical cost expanded from $250,000 to up to $5 million.

The pressure group has now posted a six point reform plan calling for a single route to authorisation, more transparency over the approval process, harmonised security standards, cheaper monitoring, the option to upgrade without dropping out and a simpler road map for compliance.

FedRAMP Fast Forward members include AWS, HPE, IBM, CGI, General Dynamics and CenturyLink.

BT, Cisco, News & Analysis, SDN, Telco Cloud

BT uses Cisco IWAN tech for new SDN namaged service

BT cloud of cloudsBT has launched a new managed comms service that uses software defined networking techniques to automatically optimise network traffic, reports Telecoms.com.

The BT Connect Intelligence IWAN service will, it claims, cut networking costs, boost app performance and tighten security for clients. It unveiled the Walgreens Boots Alliance as a reference customer, which runs in the UK and 20 other countries. Clients can use IWAN as a bridging stage in its transition to full network function virtualisation and software definition in the cloud, it claims.

BT’s IWAN was created by integrating Cisco’s Intelligent WAN (IWAN) service within the BT Connect portfolio of network services. The new offering is a hybrid of public and private cloud and uses Software Defined Wide Area Network (SD-WAN) technology to create virtualised functions such as application performance management and security.

Among the new options offered in this first version of Connect Intelligence IWAN will be a        Virtual Private Network (VPN), fast track application routing, higher rates of app performance and better intelligence on how the network is operating.

The VPNs will be created using MPLS technology and will secure interconnections across hybrids of private and public cloud, as well as fixed line and mobile networks. Meanwhile, despite the powerful levels of encryption set up by the VPNs, information from applications will be fast tracked across the network by the quickest possible route, thanks to intelligence based on real-time network performance. The faster performance of applications will improve productivity and user experience, claims BT. Meanwhile SDN will allow the service provider to gives customers deep insight into their application and network performance, BT claims. The telco claims customers can self-manage their networks through BT’s My Account portal.

The use of NFV and SDN paves the way for a new generation of services that are quicker and easier to set up and change, according to Keith Langridge, VP of network services at BT Global Services. “Customers all over the world can now deal much more effectively with their increasing bandwidth and traffic optimisation demands,” said Langridge.

distributed storage, IBM, News & Analysis, Storage as a Service, Western Digital

Western Digital and IBM in distributed storage license agreement

StorageIBM and Western Digital have announced that they are entering into an intellectual property sharing arrangement, in the form of a formal patent cross-license agreement. Terms of the transaction have not been disclosed.

According to a statement on Western Digital’s website it has bought 100 patent assets from IBM, which relate to IBM inventions for distributed storage, object storage and emerging non-volatile memory. Western Digital said the intellectual property has been selected to be used in conjunction with its existing portfolio of 10,000 patents and patent applications.

Non-volatile memory is an emerging technology sector contested by Intel, Micron and HGST, with technologies such as 3D XPoint and Phase Change Memory. IBM demonstrated its own PCM device in May 2014.

IBM has led the annual list of U.S. patent recipients for 23 consecutive years. In 2015 it broke its record for the number of patents (7,355 patents) it applied for. Though it is developing new inventions across a diverse range of technology fronts, IBM has said that it is putting a strong emphasis on developing cognitive systems and cloud platforms as the company positions itself to try to regain leadership in a new era of computing.

The challenge IBM is undertaking is to find a way to help humans and machines connect across the cloud and collectively be more productive than they have ever been before, according to Thomas Malone, director of the Center for Collective Intelligence at MIT.

This particular agreement is about making rapid advancement and monetising of new data storage solutions, according to Western Digital. “We are building on our long-standing relationship and look forward to future collaborations and business opportunities,” said Mike Cordano, chief operating officer for Western Digital.

Gartner, News & Analysis, Public Cloud, Research

Public cloud service revenue forecast to top $200 billion in 2016

GrowthThis year the global public cloud services market will grow by 16.5 per cent on last year’s total of $175 billion in sales, according to market analyst Gartner. Total sales of the various cloud services will be worth $204 billion, it forecast.

The most exciting market to be in will be infrastructure services, with its 38.5% rate of expansion making it the fastest growing cloud market. Sales of infrastructure as a service [IaaS] will create $22.4billion in revenue in 2016, according to Gartner’s forecast.

Cloud advertising is the largest segment of the global cloud services market. Though it is growing at around a third of the rate of IaaS (at 13.6%) its sales in 2016 will reach $90.3 billion. The next biggest segment is predicted to be sales of business processes (BPaaS) which will be worth $42 billion, while cloud application services (SaaS) will create $37.75 billion of revenue in 2016. Surprisingly, cloud management and security will be worth a relatively lowly figure of $6.248 billion, a figure that is possibly due to expand as the cloud industry matures.

IaaS is booming because enterprises are abandoning the idea of building their own data centres and moving their infrastructure to the public cloud, according to report author Sid Nag, research director at Gartner. However, Nag had words of warning for vendors in this area. “Certain market leaders have built a significant lead in this segment, so providers should focus on creating differentiation for success,” said Nag.

This year it will be impossible to go wrong in the public cloud as high rates of growth will be enjoyed across all markets. Gartner expects this to continue through 2017, said Nag. “This strong growth reflects a shift away from legacy IT services to cloud-based services, due to increased trend of organisations pursuing a digital business strategy,” said Nag.

EMC, Enterprise IT, News & Analysis, VMware

VMware lay offs will herald year of mass global IT redundancies says analyst

business cloud network worldCloud driven IT industry convergence will result in 330,000 job losses across the globe in 2016, according to one analyst.

The prediction come from IT market watcher Trip Chowdhry at Delaware based Global Equities Research, following the speculation that VMware is to make 5% of its workforce (around 900 staff) redundant as VMware’s parent company EMC merges with Dell.

The job losses at VMware, according to a report in Fortune magazine, will be a consequence of a restructure of VMware in order to make the merger deal look more advantageous to investors.  VMware is just one of a number of EMC Federation companies, a roster that also includes RSA Security, VCE and Pivotal. There has been criticism, according to Fortune, that Dell’s owner Michael Dell Cynics was potentially getting VMware at a bargain basement price, since its stock was being valued on the basis of the parent company, when its own stock has outperformed EMC shares. The redundancies may help give the investors a better deal as the convergence of the IT giants continues, said the report.

According to analyst Chowdhry this is a pattern that will be repeated throughout 2016, as the boom in cloud computing drives IT industry consolidation. The shift to cloud computing, said Chowdhry, will make much of the IT expertise unnecessary, particularly those who were once needed to support back-end operations. Around 70% of the work done in IT goes on at the back end, Chowdhry told clients in a briefing. As a result, the number of back end staff across the IT industry who face redundancy in 2016 could hit 330,000, he said.

According to Chowdhry’s figures the highest percentage of losses will be at HPE, HP, Yahoo and Yelp, all of which can expect to have to let 30% of their staff go. Losses at the two HP spin off would amount to 72,000 and 86,000 redundancies respectively. IBM, facing 25% staff layoffs in 2016, would put 95,000 IT staff back onto the employment market. Even Cisco, Juniper, Oracle and Microsoft staff would face redundancies, shedding a collective 80,000 staff between them.

The good news, however, is that non back-end IT jobs, involving the other Functional and Customer Domain responsibilities, are to boom. However, Chowdhry warned, these jobs can’t be immediately filled as the education is unable to create the skills in time.

containers, Docker, micro containers, News & Analysis, Unikernel

Docker buys Unikernel Systems to make micro containers

containersUS based container software pioneer Docker has announced the acquisition of Cambridge start up Unikernel Systems, so it can create even tinier self contained virtual system instances.

Open source based Docker automates the running of applications in self contained units of operating system software (containers). It traditionally did this by creating a layer of abstraction from operating-system-level virtualization on Linux. This resource isolation allows multiple independent jobs to run within a single Linux instance, which obviates the need to spin up a new virtual machine. The technology provided by Unikernel, according to Docker, takes the autonomy of individual events to a new level, with independent entities running on a virtual server at an even smaller, more microcosmic level.

The new expertise bought by Docker means that it can give every application its own Virtual Machine with a specialized unikernel, according to Docker community marketing manager Adam Herzog.

Unikernel takes away the rigid distinction between operating system Kernels and the applications that run over them, creating more fluidity and exchange between the two. When source code is compiled a custom operating system is created for each application which makes for a much more efficient way of working and more effective functions. The key to efficiency of unikernels is their size and adaptability, according to the Docker blog. Being brought into the open source stable will make them more readily available to developers, it argued.

Unikernel was founded by ex-alumni from hypervisor company Xen including Anil Madhavapeddy, David Scott, Thomas Gazagnaire and Amir Chaudhry. Since unikernels can run on ‘bare metal’ (hardware without any operating system or hypervisor) they take the efficiency of virtual machines further, according to the Docker blog. Unikernels are an important part of the future of the container ecosystem since they effectively absorb the operating system into the containers, Scott says. Since an application only needs to take on the scraps of operating system code that it needs, Unikernels could eventually make the operating system redundant, it claimed.

451 Group, IDC, News & Analysis, Public Cloud, Research, Storage

Public cloud spending predicted to double by 2019 with storage booming

Cloud storageThe boom in public cloud service spending will propel AWS and Microsoft into the top five of the world’s biggest storage vendors, according to analysts.

Separate reports from IDC and the 451 Group suggest that the public cloud will growth overshadow the rest of IT and change the power balance.

The latest Public Cloud Services Spending Guide from IDC predicts that global spending on public cloud services will grow at six times the rate of the rest of the IT industry. With a 19.4% compound annual growth rate (CAGR) public cloud spending will double from last year’s $70 billion to $141 billion in 2019.

The popularity of Software as a Service (SaaS) will continue as it makes up two thirds of all public cloud spending in the forecast period. However Infrastructure as a Service (IaaS) and Platform as a Service (PaaS) will grow faster, with spending on each rising by 27.0% and 30.6% respectively.

By 2018, most software vendors will have fully shifted to a SaaS/PaaS code base, predicted Frank Gens, Chief Analyst at IDC. This means the software industry is at a tipping point where SaaS becomes the preferred option.

The industries with the largest public cloud services expenditures in 2015 were discrete manufacturing at $8.6 billion, followed by banking and professional services at $6.8 billion and $6.6 billion, respectively. Telecommunications will be the fastest-growing vertical industry over the 2014-2019 forecast period with a worldwide CAGR of 22.2%. Other industries expecting a five-year CAGRs of over 20% are the media, government, education, retail, transport and utilities.

“The cloud is the future of IT but every organisation’s journey to the cloud is different and won’t always result in moving to a public cloud,” said Mark Ebden, strategic consultant at Trustmarque. However, he warned that companies need to assess the functions that can be moved to the cloud with the least disruption.

The fast growth of public cloud service companies is already disrupting the storage market, according to a 451 Research study. It found that public cloud storage will account for 17% of enterprise storage spending by 2017, up from 8% today. In some verticals like retail the public cloud will account for 25% of total storage spending by 2017.

Public cloud will shift the IT budget so that more money is spent on storage, according to the report. In addition, Amazon Web Services and Microsoft will become top five storage vendors by 2017. While the traditional storage players like leader EMC can dominate now, in two years spending on traditional SAN and NAS products will be more muted, said the report. Dealing with data and storage capacity growth is by far the single greatest pain point for storage managers and improving backup and disaster recovery will be the top storage objectives for 2016, according to 451 analyst Simon Robinson.

blockchain, Digital Asset, fintech, Funding, News & Analysis

Blockchain specialist Digital Asset gets $50 million to create a global digital ledger

Dollar SignsDistributed ledger maker Digital Asset has announced $50 million funding to further its expansion of blockchain technology for the financial sector.

The start up’s thirteen fintech investment specialist backers included ABN AMRO, Accenture, BNP Paribas, Deutsche Börse Group and JP Morgan. Launched in 2015, Digital Asset is aimed at banks, exchanges, settlement and clearing firms, central securities depositories and financial services provider who need faster, but more secure and accountable electronic financial settlement systems.

Digital Asset founder Blyth Masters, a former JP Morgan banker, told Bloomberg that the technology is a ‘form of database’ technology that could a single ‘common source of the truth’ for every single aspect of every transaction in synch. The single source authoritative record of every stage of a transaction could obviate the need for the ‘questionable trade’ investigations conducted by Wall Street, the city and all global financial institutes.

The inventor claims its Distributed Ledger Technology cuts costs through a combination of business logic apps, privately permissioned networks and a cryptographically secure shared infrastructure. Digital Assets’s software will improve post-trade processing and lower the latency, error rates, risk and capital requirements.

“Our investors are putting their capital to work to prove out and drive global adoption of this technology because they see it will be very significant for their businesses in cost avoidance, capital reduction, risk reduction, regulatory compliance – these are big strategic issues for financial firms today,” said Masters.

Included in the round of investment was a contract to speed up settlement in Australia’s stock market ASX, in return for $10.5 million. “We can now trade equities in 150 microseconds, then it takes two days to settle. That makes no sense,” said Elmer Funke Kupper, chief executive officer of ASX. “This is the first opportunity in 20 years to re-engineer the way the market operates end-to-end. We should not miss that opportunity.”

Digital Asset beat 400 applicants for the contract to remake ASX’s clearing and settlement system.

Earlier this week, R3, a blockchain startup backed by 42 banks, said it successfully simulated trades of digital assets on a private network made up of 11 of its members. Meanwhile Overstock.com is expected to unveil the first securities-trading system using blockchain. Nasdaq has reportedly used the technology to complete and record a private securities transaction for the first time.