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One in four cloud service clients willing to be held to ransom – study

mobile tablet securityOne in four companies would be willing to pay a ransom to criminals who stole their information, with 14% of them willing to pay over a million dollars, says a study. Companies with cyber insurance are most likely to hand over cash.

This revelation comes from a survey of cross industry sample of 200 IT and security professionals by the Cloud Security Alliance. The study’s objective was to examine how industries around the world are managing cloud adoption.

Exposure is increasing, according to the survey, which indicated that IT professionals are struggling to cater for the demand for new cloud services, receiving on average 10.6 requests each month for new cloud services. Only 71.2% of companies now have a formal process for users to request new cloud services and of these 65.5% admitted that they ‘only partially’ follow it. Due diligence is impossible under the circumstances because it takes an IT security team 17.7 days on average to evaluate the security of a cloud provider, the study says.

The most common reason for rejecting a cloud service is not related to security or compliance but the fact that a comparable cloud solution is already in place. Small companies are most likely to judge a cloud service by the cost, with the lack of budget, in 28.4% of cases, being the most popular criteria for rejection.

The lack of security could cause problems in future because many companies are now putting sensitive customer information in the cloud. The most commonly purchased cloud system is customer relationship management (CRM), which was identified as a purchase by 36.3% of the survey sample. The figures may reflect a degree of complacency as ‘just 35.0% of IT and security professionals believe that cloud-based systems of record are less secure than their on-premises counterparts’, says the report.

Despite the perceived improvement in security from cloud services, 60.8% of companies have taken the precaution of appointing a chief information security officer. However, these relatively new roles are ill-defined and responsibilities, such as ransom negotiation, vary across companies.

“It’s shocking that so many companies are willing to pay even a penny’s ransom,” said Skyhigh Networks spokesman Nigel Hawthorn, “The idea that some would pay more than $1m is downright staggering. Hackers are increasingly confident they can hold businesses over a barrel.”

BT wins £24 million worth of EU cloud service contracts

BT Sevenoaks workstyle buildingTelco BT has won new two cloud service contracts with European Commission worth £24 million, which brings its total of EC contract wins to four in 12 months.

The brief, to provide public and private cloud services across 52 major European institutions, agencies and bodies, is one of the largest government contracts in Europe. Among the clients receiving the cloud computing services are the European Parliament, the European Council and the European Defence Agency.

The two framework contracts, announced this week, were awarded in December 2015, and will run for a maximum of four years once legal details have been finalised. Once work begins BT will implement the contracted private cloud services, after which it will become one of five providers competing to run public cloud projects.

The two new deals are the third and fourth European Commission framework contract wins awarded to BT in 2015, all of which involved open calls for tender from all EC approved suppliers.

In August 2015 BT signed a seven year £11.5 million (€15.2m) framework contract with the European Commission to provide voice services across 21 major European institutions, agencies and bodies. This followed March’s award of a five year £42 million (€55.7m) framework contract for the delivery of dedicated internet access to all major European institutions, agencies and bodies across the 28 member states. BT has provided services to the European Union for more than a decade.

The newly contracted services will be hosted from a geographically diverse spread of data centres within the European Union and all customer data will remain within the Union. As part of the tender process BT had to prove it could meet strict EU requirements for data sovereignty, compliance, security and privacy.

BT will integrate and manage the data centre estate using its Compute Management System (CMS), a single, federated portal for IT services which, BT claims, is its ‘secret sauce’ for winning contracts.

“This is a milestone in our journey to be the leading global cloud services integrator,” said Corrado Sciolla, BT Global Services’ president.

Citrix to sell CloudPlatform and CloudPortal to Accelerite, improve XenApp

CitrixCitrix has announced it will sell its CloudPlatform and CloudPortal Business Manager systems to infrastructure software vendor Accelerite. The acquisition is expected to close in Q1 2016, subject to conditions.

Accelerite, a subsidiary of Persistent Systems, has recently acquired cloud and virtualisation product lines from HP, Intel and Openwave. Citrix will work with Accelerite to build on CloudPlatform integrations with XenServer, NetScaler and Citrix Workspace Cloud.

The Apache-based CloudPlatform is used to create and run public and private cloud infrastructure services. CloudPortal Business Manager automates provisioning, billing, metering and user management. Its strength is that it allows service providers to deliver a range of cloud services while integrating with existing business, operations and IT systems, according to Nara Rajagopalan, CEO of Accelerite,

The new additions give Accelerite a more complete portfolio and it can now fill the gap in end-to-end life cycle management for public and private clouds, it said. Despite the increasing adoption of container technology in the cloud industry many enterprises cannot deploy and manage them. CloudPlatform’s simplicity and large customer base provide a means of addressing this emerging shortfall as the industry evolves into hyper-convergence, Rajagopalan said in a statement.

“Citrix will work closely with Accelerite to build on CloudPlatform integrations with our key offerings that enable the secure delivery of apps and data,” said Steve Wilson, the VP of Core Infrastructure at Citrix.

Citrix will continue to work with both the OpenStack and CloudStack open source communities to optimise its NetScaler, XenServer and Citrix Workspace Cloud.

Meanwhile, at the Citrix Summit 2016 in Las Vegas Citrix announced that new releases of XenApp and XenDesktop are available for download. The new 7.7 XenDesktop release is a product of collaboration between Citrix and Microsoft and it promises new cloud provisioning and collaboration options. The new versions will improve the flexibility of the FlexCast Management Architecture (FMA) across multiple geographical locations, Citrix claims.

Among the promised improvements are a fully native Skype for Business user experience within a virtual app or desktop, as well as high-quality voice and video. The new versions will make it easier to set up virtual desktops in Microsoft Azure by using the Machine Creation Services (MCS) feature of XenApp and XenDesktop. Citrix Provisioning Services will also now supports the on-premises provisioning of Windows 10 virtual desktops, it claims.

SAP claims earnings doubled expectations, announces plans to unify brands

SAP1As SAP’s year-end figures were published the cloud giant has unveiled plans to clarify the positioning of all its cloud offerings in an open letter to customers.

SAP said the preliminary figures for its financial year ending on December 31st outpaced the growth of the rest of the cloud industry and exceeded its own expectations.

SAP’s non-IFRS cloud and software revenue grew by 20%, double the original outlook of 8 to 10% growth. The ‘exceptional momentum’ claimed by SAP will be even great next year, it claimed, as cloud sales bookings increased by 103% in the full year to $0.97bn (€0.89 billion) and 75% in the fourth quarter to $0.35bn (€0.35 billion). Cloud subscriptions and support revenue was $2.49 bn (€2.30 billion) for the full year and Operating profit was $6.89 bn (€6.35 billion).

Use of the in memory platform SAP S/4HANA doubled each quarter, claims SAP, which has 2,700 customers by the end of 2015. “We decisively beat our full year guidance for cloud and software revenue,” said Bill McDermott, CEO of SAP.

Based on these figures, the outlook for next year should see faster growth, predicted SAP. Cloud subscriptions and support revenue are projected to be up to $3.31bn (€3.05 billion), which would represents a growth rate of 33%. Meanwhile, non-IFRS cloud and software revenue will increase by up to 8% on the 2015 total of $18.69 (€17.23 billion). Operating profit, it said, will be around the same as 2015’s total, with maximum expectations being $7.27Bn (€6.7 billion).

A key to managing operating profit will be a simplification of SAP’s software portfolio, explained Chief Marketing Officer Maggie Chan Jones on the SAP web site.

“Our portfolio for digital business has also expanded through acquisition and we are stronger for customers, partners and ourselves,” said Jones. That growth needs to be managed, Jones warned.

In 2016 SAP will bring its acquired companies closer together under a unified SAP brand that includes Ariba, Fieldglass, Hybris and SuccessFactors. The acquisitions will now be known as SAP Ariba, SAP Fieldglass, SAP Hybris, and SAP SuccessFactors respectively.

Jones claimed this will bring clarity to customers and ecosystem partners across all ‘touch points’. “Our goal is to deliver a simpler, superior customer experience, with all the SAP brands going to market with a consistent, unified look and feel,” said Jones.

HPE opens first EMEA customer engagement centre in London

HPE office logoHewlett Packard Enterprise (HPE) has unveiled a new 14,000 square foot demonstration facility next to its new offices in London’s financial district.

The new City of London-based Customer Engagement Centre (CEC) is part of a new 67,000 square foot single occupancy on Aldermanbury Square, London. The demo centre is HPE’s first in the EMEA region. The plan is to use business experts and leaders to show potential customers what HPE’s new systems and services look like and how they can be tailored to improve the client’s productivity.

HPE said it aims to prove how four key areas of expertise can help customise each service to suit every client. The four pillars of expertise are in building hybrid IT, creating a data driven culture, security and increasing productivity.

HPE’s first area of expertise, ‘Transforming to hybrid infrastructure’ will be used to help clients bridge their existing IT with cloud environments and get the best performance from their mixture of resources.

Its expertise in ‘empowering data-driven organisations’ will be applied to help companies develop analysis techniques. HPE has promised to show them how to get faster and more meaningful insights, with a view to improving decision making and customer satisfaction, and to identify new business opportunities.

The ‘protecting digital enterprises’ strand of its expertise will be used to advise companies on risk management, protection from cyber threats and sustaining operational integrity.

The fourth area of expertise, ‘enabling workplace productivity’, will be used to help clients get the best possible options for employees, customers and partners through mobile and networking solutions, said HPE.

“We see the EMEA region as one of the world’s most dynamic technological hubs and fertile environments for this revolution, hence our decision to create the first CEC outside of the US in London,” said Peter Ryan, HPE’s MD for EMEA. The UK is HPE’s second largest market.

Meanwhile HPE Ventures has invested in software defined storage provider Scality as part of an ‘enhanced partnership’ between the companies.

“The enterprise storage market is diverging into latency-optimized and capacity-driven segments,” said Manish Goel, GM for storage at HPE. “As the leader in enterprise and hyperscale servers, and the fastest growing vendor in all-flash storage with HPE 3PAR StoreServ, this Scality partnership gives us a leadership position in capacity-driven storage as well.”

Wind River partners with Roland Berger and Ricardo to develop automatic driving systems

connected-car-normalIoT software company Wind River is to develop car automation software with civil engineering specialist Ricardo and consultancy Roland Berger.

In its car-making partnerships, Wind River will provide automotive software along with architectural and engineering support while Ricardo will integrate it with its physical vehicle systems. The projects will range in scope from advanced in-vehicle infotainment (IVI) to safe and secure advanced driver assist system (ADAS) technologies to autonomous driving.

Autonomous driving calls for advances in software, physical vehicle systems and intelligent connectivity within and outside of the car, according to Marques McCammon, general manager of connected vehicles at Wind River. These will only become a reality if Ricardo can integrate them, which means bringing together new vistas of algorithm development, sensor fusion and hardware integration, according to McCammon.

Wind River has also announced another partnership with global consultancy Roland Berger to help it confront the ‘slew of new challenges’ created by the jump in safety and security demands that all car makers now face. “Many in the industry are currently playing catch-up and looking to experts to fill in the gaps,” said Wolfgang Bernhart, senior partner and automotive expert at Roland Berger.

Car making clients of the two consultancies will receive software strategy direction from Wind River and Roland Berger. Wind River will provide software management, architectural and engineering support as each new car model’s development goes from the strategy exploration phase to the proof-of-concept and production phases. Roland Berger will deliver market insights, trend and business analysis will help design new innovative business models.

Meanwhile, Wind River’s autonomy within Intel looks set to end as plans have emerged to integrate it into the parent company by 2017. A statement outlining the plan was sent to Wind River employees earlier this week.

Intel bought Wind River for $884 million in 2009 and it has remained independent, but in early January president Barry Mainz left to be chief executive of MobileIron. An Intel spokeswoman told Fortune that incorporation of Wind River would be a logical next step. However, while the rationale is to align Wind River, it will retain its branding and continue to support non-Intel processors, the spokeswoman said.

New Xangati platform gets automated storm remediation

cloud storm rainCalifornia based network performance manager Xangati has launched a new automated system for boosting hybrid cloud output.

The Xangati Virtual Appliance (XVA) system has an automatic mechanism for storm remediation for virtualised and VDI infrastructures. It can also support Microsoft Hyper-V environments natively. By integrating with ServiceNow the XVA system can also share trouble tickets and storm alerts with the ServiceNow ITSM (IT Service Management) portal.

As hybrid clouds become increasingly popular companies are discovering that performance can be slowed down by a variety of cloud components and it is proving difficult to identify the root causes, the vendor said. XVA will help them to pinpoint whether the trouble is being caused by created storage, CPU, memory or boot storms. The new Xangati XVA will allow virtualisation system administrators to address CPU and memory performance issues by automatically balancing workloads across vCenter hosts, it said.

The system provides real time key performance data, capacity planning and cost optimisation. Xangati’s Efficiency Index measures the extent to which available CPU, memory, storage and network interface capacity is being used.

The new functions will allow service providers to see how well their systems are running, give them a quicker resolution and improve their chances of meeting service level agreements, said Atchison Frazer, VP of marketing at Xangati. Other features within the offering include support for NetApp Storage Systems, XenApp and Splunk.

“Xangati is moving towards an automated response to off complex degrading conditions,” said Frazer. Xangati is a virtual appliance that runs on VMware vSphere. The word Xangati is derived from the Sanskrit word Sangathi, which translates as “coming together to know more about ourselves.”

IT conflict in UK companies stunts growth claims DevOps study

software code devopsBritish firms are falling behind in the app economy thanks to conflict between their development and operations departments, according to a business analyst’s study. British organisations were the second worst in a European study group at harmonising their combined IT effort, with only their German counterparts proving to be less adept at DevOps.

The study was conducted by analyst Freeform Dynamics on behalf of CA Technologies. In the accompanying report Assembling the DevOps Jigsaw, the analyst concluded that UK organisations have three major failings to address. They don’t take a business-led approach to development, they lack skilled and collaborative IT resources and they are missing important control mechanisms for governing the process of DevOps.

As a consequence, the analyst says, UK organisations are at risk of falling behind in the application economy. To support the contention that companies in Europe’s two biggest economies must spend more on DevOps, DevOps supplier CA Technologies said that 84% of UK organisations agree it’s important to have IT and business alignment in relation to DevOps activities, but only 36% have this in place. While 87% of the survey group agreed that relevant IT skills must be in place, only 24% currently do so. Similarly, on the subject of having the right DevOps controls in place, 85% agree it is important but only 20% have already achieved this.

The ‘capability gap’ stems from a lack of cultural harmony in IT, according to the report. While 68% of UK organisations recognised the danger of cultural barriers between Dev and Ops teams, only 38% have fully dealt with cultural transformation. The barriers were identified as traditional lines of demarcation, ingrained mind-sets and long-established turf wars.

While only 11% of UK organisations are ‘Advanced DevOps Adopters’ in Switzerland there are twice as many (23%). Britain also lags behind Spain (13%), France and Italy (both 12%). Only Germany, with a 10% business population of Advanced DevOps Adopters, was worse than the UK in adopting a DevOps culture.

“This study reveals that UK organisations are missing out on the opportunities heralded by the application economy,” said Ritu Mahandru, VP of Solution Sales at CA Technologies, “they are failing to adopt a fluid and experimental approach to product and service development.”

The upshot, he claimed, as that digital interaction with customers, partners and suppliers suffers.

VMware beefs up security, announces IBM and Intel collaborations

VMWare campus logoVMware has moved to patch flaws in several of its services and has worked with Intel Security to beef up its protection of mobile cloud systems.

In a security announcement on its web site VMware told clients that versions of VMware ESXi, Workstation, Player and Fusion for Windows suffer from a kernel memory corruption which could be exploited.

Earlier this week VMware announced that it is working with Intel Security on two joint mobile initiatives involving AirWatch. It has also joined the Intel Security Innovation Alliance.

The two vendors will allow clients to share mobility data via the McAfee Data Exchange Layer, a component within Intel Security’s system. The integration of AirWatch with Intel Security technologies will help customers get more out of their existing security investments, resolve mobile threats more quickly and reduce operational costs, claims VMware. Additionally, Intel Security has joined the AirWatch Mobile Security Alliance (MSA).

The alliance formed by Intel Security and VMware addresses three areas of enterprise security:  data protection, threat detection and prevention and security management with integrated workflows.

Mobile business transformation will run its course much quicker if companies can get their foundation security system to work with their mobility assets, according to Noah Wasmer, VP of mobile engineering and product management for end-user computing at VMware. “This partnership with Intel Security will deliver a complete mobile security solution. McAfee Data Exchange Layer will communicate essential threat intelligence that can help drive faster response and remediation,” said Wasmer.

News of another partnership was announced on the VMware site, which unveiled a new VMware IBM Partner Hub. This new sales enablement portal has been modified to make it easier for IBM partners to get sales assets, training and event information pertaining to the two companies’ joint efforts on Cloud, Systems, Networking, Mobility and Resiliency. Access is restricted to those with an IBM or VMware email address.

Snooper’s charter a potential disaster warns lobby of US firms

security1The ‘snooper’s charter’ could neutralise the contribution of Britain’s digital economy, according to a representation of US tech corporations including Facebook, Google, Microsoft, Twitter and Yahoo.

In a collective submission to the Draft Investigatory Powers Bill Joint Committee they argue that surveillance should be “is targeted, lawful, proportionate, necessary, jurisdictionally bounded, and transparent.”

These principles, the collective informs the parliamentary committee, reflect the perspective of global companies that offer “borderless technologies to billions of people around the globe”.

The extraterritorial jurisdiction will create ‘conflicting legal obligations’ for them, the collective said. If the UK government instructs foreign companies what to do, then foreign governments may follow suit, they warn. A better long term resolution might be the development of an ‘international framework’ with ‘a common set of rules’ to resolve jurisdictional conflicts.

“Encryption is a fundamental security tool, important to the security of the digital economy and crucial to the safety of web users worldwide,” the submission said. “We reject any proposals that would require companies to deliberately weaken the security of their products via backdoors, forced decryption or any other means.”

Another area of concern mentioned is the bill’s proposed legislation on Computer Network Exploitation which, the companies say, gives intelligence services legal powers to break into any system. This would be a very dangerous precedent to set, the submission argues, “we would urge your Government to reconsider,” it said.

Finally, Facebook and co registered concern that the new law would prevent any discussion of government surveillance, even in court. “We urge the Government to make clear that actions taken under authorization do not introduce new risks or vulnerabilities for users or businesses, and that the goal of eliminating vulnerabilities is one shared by the UK Government. Without this, it would be impossible to see how these provisions could meet the proportionality test.”

The group submission joins other individual protest registered by Apple, EE, F-Secure, the Internet Service Providers’ Association, Mozilla, The Tor Project and Vodafone.

The interests of British citizens hang in a very tricky balance, according to analyst Clive Longbottom at Quocirca. “Forcing vendors to provide back door access to their systems and platforms is bloody stupid, as the bad guys will make just as much use of them. However, the problem with terrorism is that it respects no boundaries. Neither, to a greater extent, do any of these companies. They have built themselves on a basis of avoiding jurisdictions – only through such a means can they minimise their tax payments,” said Longbottom.