When Cloudera and Hortonworks, two of the biggest big data behemoths, first announced they were coming together in a $5.2 billion blockbuster merger in October, the questions were almost infinite. Yet the most important two seemed to be: why now? And what does the future hold?

Now, after the transaction officially closed earlier this month, the answers can be a little more candid. Perhaps surprisingly, the new company admits the move came about as a result of feeling the heat from its traditional competitor base as well as the public cloud giants.

Here’s what we know about the deal:

• Conversations between Cloudera and Hortonworks around M&A activity had started as far back as 2015 with various factors meaning last summer was ‘the right time for both businesses’ to merge
• The new company will be called Cloudera going forward – the common platform which results will be called Cloudera Data Platform aimed as a nod to the Hortonworks Data Platform suite
• The first technical kick-off of the joined entity took place earlier this month in Scottsdale, Arizona. Cloudera says ‘80%-85%’ of the most burning issues around overlapping product sets were able to be resolved there

It’s usually good if you know you’re under pressure to face up and admit it rather than endlessly be in denial. And it’s even better if, like Cloudera, you have an action plan to resolve the situation.

Chief marketing officer Mick Hollison (left) notes that, despite the arrows coming in from two different fronts, the challenges are broadly similar. The company’s software, as well as its strategy, is based around what it is calling the ‘enterprise data cloud’. The strategy is based around three strands; supporting every possible cloud implementation, from hybrid to public to multi-cloud; supporting a wide range of analytic capabilities; and going the extra mile on an open philosophy, from open storage, to compute, to integration.

Getting this mix right, Cloudera hopes, will satisfy even the largest and most demanding enterprise customers – and put them one step ahead of the competition in the process.

“If I look at the public cloud providers, they’re inherently never going to be multi-cloud,” Hollison tells CloudTech. “You’ll continue to see [them] dipping toes more into hybrid – [it’s] future state but something they plan to get into. Multi is something they’re not likely to get into.

“The second part public cloud vendors will struggle with a bit is that security and governance and common metadata layer,” Hollison adds. “That doesn’t exist for those vendors today. If you buy EMR from Amazon and you also buy RedShift from Amazon, you get a different security, governance and metadata stack with each of those offerings. We offer commonality at that layer.”

Looking at the more traditional big data companies – the word traditional being used loosely – Hollison again pulls no punches. “If I look across the way, with the more purpose-built data warehouse cloud [vendors], those companies and those offerings are very compelling for their one function that they offer. They’re not at a point where they’re building out their technology into a platform they can offer a set of shared services across.”

It’s worth noting here that Cloudera freely admits it hasn’t got all the pieces in place yet. Yet one element which all sides can agree on is that customer expectations have skyrocketed in recent years. “The expectations are seemingly infinite,” says Hollison. “The raw scale and quantity of data consumption by our largest customers is just orders of magnitude beyond what any of us could have ever imagined not terribly long ago.

“The other dimension is that customers have high demands around cloud,” Hollison adds. “Many of our large enterprises customers have a bit of a concern around being locked in to any one cloud vendor. Regardless of partnership, they don’t want to take the public cloud on as a new version of an IBM or Oracle lock-in.”

Part of this heightened sense of expectation is around the promise of artificial intelligence (AI) and machine learning (ML); a necessary strategic point for the vendors. A report from venture capital firm Work-Bench in August predicted that ‘all modern [business intelligence] vendors to either release an automated machine learning product or buy a startup’ by the end of 2019.

Cloudera was ahead of this curve buying data science platform Sense.io in 2016, with the technology acquired forming the backbone of the company’s Data Science Workbench product. “It’s a very logical step from my point of view,” Hollison says of fusing AI and ML with big data. “The term we’ve been using is to ‘industrialise AI’, to make it more like a factory.

“Most of the ML and AI that has been done in enterprises to date has been pretty bespoke. It hasn’t necessarily been done against well secured and governed data sets supported by IT,” adds Hollison. “It’s often been scraped onto a laptop by a data scientist, putting that data at risk. When you combine data security and management capabilities that Cloudera offers, with an easy to use workbench that allows them to continue to use the languages and frameworks that they like, it’s a pretty good combination that makes both the data scientists and IT happy that data is being used in an intelligent way.”

Going forward, Hollison promises a lot of hard work on integrating and hardening the sales operations, as well as more go-to-market pieces. Yet in other areas progress has been more seamless than one would expect. The companies noted that approximately two thirds of each other’s code base had commonality, while the engineering teams were easier to satiate.

“You might have thought we’d have more challenges on that front, but what I think people forget is a lot of these engineers have been working together for upwards of 10 years in the open source community,” he says. “Even though the big corporate push might have been very competitive, at a code-writing, engineering level, there’s a lot of mutual respect between the teams.”

While there’s still a lot to do, the building blocks are in place. “We knew we would be a much stronger, more formidable competitor together than we would be continuing to take shots at one another,” adds Hollison.

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IBM has gotten Juniper Networks on board in a $325 million (£252m) deal which will see the former assist the latter in enhancing their cloud journey.

The seven-year agreement – which has overtones of Microsoft’s recent deal inked with Walgreens in terms of price and length – will see IBM use its autonomously managing IT platform IBM Services Platform with Watson to help manage Juniper’s infrastructure, from help desks and support systems to data centres.

By utilising IBM Services, Juniper will also aim to create an agile IT environment. Again with automation – IBM describes its Services Platform with Watson as a product which ‘partners humans with cognitive technology’ – the goal is for efficiency, cost saving and helping Juniper create a cloud-native landscape. IBM calls this the ‘factory development’ concept.

The move can be seen as yet another step of a major enterprise – Juniper ranks just outside the Fortune 500 – heading towards a multi-cloud strategy. “Our work with thousands of enterprises globally has led us to the firm belief that a ‘one-cloud-fits-all’ approach doesn’t work and companies are choosing multiple cloud environments to best meet their needs,” said Martin Jetter, SVP of IBM global technology in a statement.

“Working with Juniper, we are integrating cloud solutions with their existing IT investments via the IBM Service Platform with Watson,” Jetter added. “This gives them the opportunity to generate more value from existing infrastructure, along with helping them manage strategic services that are critical to their business.”

It has been a busy start to their year for IBM on the alliance front. Last week the company announced a strategic commercial agreement with operator Vodafone. The venture focused broadly on digital transformation initiatives and the next wave of cloud services in the shape of artificial intelligence (AI), 5G, edge computing and software defined networking (SDN). On a more practical level, it would ensure Vodafone Business customers would have immediate access to IBM’s entire cloud portfolio.

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The good news: your organisation has finally gotten around to installing some top of the range cloud security tools. The bad news: malware has been developed which can evade detection from them.

The nefarious discovery from threat actor Rocke was made by Palo Alto Networks Unit 42, with the security researchers noting that it was ‘to the best of [their] knowledge the first malware family that developed the unique capability to target and remove cloud security products.’

The Rocke group was first spotted in August by Cisco’s threat intelligent group, Talos, noting at the time it was an actor which ‘must be followed as they continue to add new features to their malware and are actively exploring new attack vectors.’

The malware mines Monero cryptocurrency in compromised Linux machines – cryptojacking being cited by this publication in July as ‘on the way to replacing ransomware as the biggest threat for consumers and enterprises.’ Vulnerabilities are exploited in Apache Struts 2, Oracle WebLogic, and Adobe ColdFusion. Once that is achieved, and the link established, the malware exhibits various behaviours such as persistence, killing and blocking other crypto mining software and, crucially, uninstalling agent-based cloud security products.

The cloud security products tested were both China-based, in the shape of Alibaba Threat Detection Service and Tencent Cloud Host Security – with the researchers fearing a wider spread of this variant if steps aren’t taken now.

“Public cloud infrastructure is one of the main targets for this cybercrime group,” Unit 42 added. “Realising the existing cloud monitor and security products may detect the possible malware intrusion, malware authors continue to create new evasion technologies to avoid being detected by cloud security products.

“The variant of the malware used by the Rocke group is an example that demonstrates the agent-based cloud security solution may not be enough to prevent evasive malware targeted at public cloud infrastructure.”

You can read the full analysis here.

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Another year, another study on cloud adoption – and if it’s surprising statistics you want, you’ve come to the wrong place.

Yet this may be seen as a good thing. As the report released by NetEnrich shows, the numbers on infrastructure and public cloud usage for enterprise continues to tick over, while security remains vital and DevOps still has a long way to go to mass adoption.

The research, which polled 100 IT decision makers in companies with 500 or more employees, found large enterprises in particular were ‘eagerly adopting cloud infrastructure, applications and services.’ More than two thirds (68%) said they were using cloud infrastructure today, with only 5% saying it wasn’t in their plans, while almost half (47%) reported ‘extensive’ public cloud production usage.

In terms of cloud adoption models, the choices large organisations had made were refreshingly wide-ranging. Only one in five (18%) said they were strictly using infrastructure as a service (IaaS), with 45% in the ‘mostly IaaS and some PaaS’ (platform as a service) category. 37% said they used IaaS and PaaS easily, as well as dabbling in containers.

While that side of application development is seeing solid interest in the enterprise, DevOps may need a further push. Less than one in four (23%) said they had completely switched to DevOps, with many others (59%) content to dip their toes in the water for now.

Naturally, security continues to be an overriding concern – and it’s even less of a surprise when considering the implications for enterprise organisations. Almost three quarters (72%) said security was their top priority for 2019, while a third said it was their biggest concern when it came to public cloud.

“The cloud infrastructure and applications business has never been better, and the reason is consumer demand,” said Javed Sikander, CTO at NetEnrich. “Despite the various data breaches, security missteps and occasional outages, consumers of technology services are putting more data into the cloud; they’re using more digital products and services; and they’re buying more devices that run cloud-based applications.

“Like other consumer activities, users clearly are saying that when it comes to the cloud, they’re willing to accept some risk,” added Sikander. “Business and IT leaders are getting the message, which explains the big jump in the amount of time and money companies are spending on cloud.”

You can check out the full survey results here.

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Pharmaceutical giant Walgreens Boots Alliance is making Microsoft its strategic cloud provider, focusing on connecting Walgreens stores and health information systems with a sprinkling of artificial intelligence (AI) on top.

The companies have signed a seven-year agreement with various strands. On the practical side, Walgreens will roll out Microsoft 365, the latter’s enterprise suite, to more than 380,000 employees and stores, while the ‘majority’ of Walgreens’ infrastructure will move to Azure.

On the conceptual side, plans include collaborating with healthcare providers and baking in the ‘fundamental design principles’ of data privacy and security, a multi-year research and development investment, as well as providing more personalised healthcare services.

Among the more intriguing concrete details was the planned launch of 12 in-store ‘digital health corners’ where retailers could target select healthcare-related hardware and devices.

The agreement represents the first major cloudy move Microsoft has made in 2019, and in terms of scope can be assessed alongside the company’s snaring of Walmart in a five-year strategic cloud deal announced in July. That move however came with a back story, with reports intimating that Walmart and Amazon’s retail rivalry had wider repercussions. Walmart had previously told vendors that if they ran applications on Amazon Web Services, they would lose business with the retailer.

More generally, given Amazon’s positioning in that space retail customers have been seen as a growth area for both Microsoft and Google. Speaking at an event in October, now-departed Google Cloud CEO Diane Greene explained how the company was using its AI capability in retail to predict inventory allocations. French hypermarket retailer Carrefour was also unveiled as a Google customer, while a study in October argued retail, along with advertising and marketing, were the most mature industries in terms of hybrid cloud adoption.

Walgreens said the move represented the company’s “strong commitment to creating integrated, next-generation, digitally enabled healthcare delivery solutions,” while Microsoft endeavoured to “put people at the centre of their health and wellness, combining the power of the Azure cloud and AI technology and Microsoft 365 with Walgreens’ deep expertise and commitment.”

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The data centre market saw an uptick in terms of the number of M&A deals in 2018 – but the total value has dipped, according to the latest note from Synergy Research.

The analyst firm found that while the number of acquisitions and transactions last year grew to 68, their value slipped to approximately $16 billion, shaving almost $5bn off last year’s total.

In terms of the largest deals in 2018, a 25% stake in Global Switch was sold to Asian investors for around $2.8 billion (£2.1bn), while four other deals – acquisitions by Digital Realty, Iron Mountain, GRR and Brookfield Infrastructure Partners – totalled more than $1bn.

Synergy noted that Equinix and Digital Realty, the two largest players in the space, continue to dominate investments. According to figures published by the analysts in May, Equinix extended its lead as the primary vendor with the help of two acquisitions; Australian data centre provider Metronode and a data centre from Infomart in Dallas for $800 million.

2017 could be seen as something of an anomaly in the market therefore. That year saw Equinix purchase Verizon data centres, as well as the blockbuster acquisition of DuPont Fabros by Digital Realty.

Yet the trend for services rather than infrastructure at the corporate side will continue. “There is a clear trend towards enterprises not wanting to own or operate their own data centres, as CIOs focus more on features and services that they can provide to their internal clients and less on the complexities of running data centres,” said John Dinsdale, Synergy chief analyst and research director.

“As enterprises increasingly look to various outsourcing options, this is driving specialist data centre operators to increase both the scale and reach of their data centre footprint,” added Dinsdale. “This bulking up is often best accomplished, or speeded up, by acquiring other data centre operators.

“We expect to see a lot more data centre M&A over the next five years.”

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Once a major headache for organisations, enterprise resource planning (ERP) systems are now becoming easier to migrate to the cloud, according to a new study from the Cloud Security Alliance (CSA).

The findings, which appear in the research firm’s latest report, titled ‘The Impact of Cloud on ERP’, which surveyed almost 200 enterprise-level C-suite executives. Two thirds (64%) of organisations polled are either planning or in the middle of an ERP cloud migration initiative, while the vast majority (87%) of organisations who plan to use ERP are also looking to the cloud for other projects.

There is no doubt – if any existed previously – about how important ERP remains to large organisations. 87% of those polled said it was either ‘extremely’ or ‘very’ important to their business.

When it came to specific vendors, SAP was top of the shop, cited by 52% of respondents, ahead of Oracle (35%). This makes for interesting if not overly surprising reading. As regular readers of this publication will be aware, Oracle and SAP have committed huge resources to moving their legacy software contracts over to more quickly recurring cloudy ones.

This note shows the interest on both sides. Yet are SAP and Oracle convincing customers to use them to move over? Yes and no; while AWS (28%) and Azure (25%) remain the most popular cloud providers for data migration, SAP (13.5%) and Oracle (8%), the former in particular, have respectable figures compared with their overall cloud industry market share.

Organisations want to make the most of their ERP and they see being cloud-based as the key; yet concerns naturally remain. Companies are worried most about the moving of sensitive data (64%), as well as security (59%), compliance (54%) and disruption of business operations (46%). The benefits, however, outweigh the issues; security, cited by almost half of those polled as a boon, can be patched and updated easily by the provider, while scalability with new technologies (65%) and lower capex and opex (61%) were also seen as vital.

When it came to assessing security pre- and post-migration, however, the mood was one of caution and scepticism. One in three (34%) said there was a ‘slight’ risk increase, while 19% said the risk would be ‘significant’. 30% anticipated little change.

Writing for this publication in August, Louis Columbus noted how leading organisations were taking this a stage further, by baking machine learning and artificial intelligence into their ERP systems for greater insight. Taking manufacturing as its key example, through this integration machine-level data can be analysed, virtual agents can pick across each part of the process, and product quality can be improved.

“Legacy ERP systems were purpose-built to excel at production consistency first at the expense of flexibility and responsiveness to customers’ changing requirements,” Columbus wrote. “By taking a business case-based approach to integrating AI and machine learning into their platforms, cloud ERP providers can fill the gap legacy ERP systems can’t.”

“In any cloud migration, regardless of the provider, security must be implemented from the start and implemented in phases throughout the project,” said Juan Pablo Perez-Etchegoyen, chair of the CSA ERP Security Working Group. “Organisations are concerned about moving sensitive data across environments, then addressing the security and compliance implications that come of that migration.

“Our studies have found that implementing security in each phase of the migration could save customers over five times of their implementation costs.”

You can read the full report here (pdf, email required).

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The race for cloud supremacy in the emerging Asia Pacific regions continues apace, with new data centre launches planned for Singapore and Indonesia by Equinix and Alibaba Cloud respectively.

Equinix announced that $85 million had been invested in a seven-storey site called SG4, which is expected to open its doors in the fourth quarter of 2019 with 1,400 cabinets available in the first instance. The site’s name reflects the fact that this will be Equinix’s fourth data centre in the city-state, with SG4 being built on the east side of the island, marking it out from the other sites.

The company trumpeted that the move will “provide interconnection and premium data centre services to help businesses with their IT transformation and cloud adoption initiatives, while also supporting the digital infrastructure of Singapore.”

Meanwhile, Alibaba announced the launch of a second data centre facility in Indonesia, bolstering its strength in the country. The move, which Alibaba claims was driven by ‘strong’ customer demand, will aim to give customers greater disaster recovery capabilities and critical switchover. The company said the Indonesian market with its “better connectivity and a fast-growing digital community” presented “enormous opportunities to both local and global enterprises.”

The assessment of the market across Asia Pacific has been varied. This is down to the fact the region itself has varying standards. Singapore would certainly be considered at the top end of the spectrum. The nation was ranked last year as the number one cloud-ready Asia Pacific nation according to the Asia Cloud Computing Association (ACCA). At the other end sits Indonesia, which was ranked #11 out of 14 nations, with international connectivity and sustainability garnering particularly poor marks.

In July, IDC warned in a research note that the vast majority of Asia Pacific organisations were at an early stage of their cloud journeys, with either ‘ad hoc’ or ‘opportunistic’ initiatives the order of the day. While Japan’s maturity is such that it is often excluded from this IDC analysis, the company argued that businesses needed more consistent, standardised, and available cloud resources.

The potential of Singapore however cannot be ignored. According to Nutanix’s Enterprise Cloud Index – and as reported by Computer Weekly –  companies in the city-state plan to reduce traditional data centre usage significantly in the coming two years.

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It’s official: Amazon Web Services (AWS) has acquired Israeli cloud disaster recovery and backup specialists CloudEndure.

The news had been rumoured over the past few days, yet a short announcement from CloudEndure this morning confirmed the news. The company said no more other than that the acquisition “expands [its] ability to deliver innovative and flexible migration, disaster recovery, and backup solutions.”

CloudEndure offers disaster recovery, continuous backup and migration tools across AWS, Google Cloud Platform, Microsoft Azure, and VMware. Following the acquisition it is unclear as to how these paths will play out, although it is worth noting the CloudEndure website has been redesigned to reflect the news, with the ‘contact us’ form leading directly to a landing page for AWS’ Migration Acceleration Program.

The move can be seen as yet another step on the path to the next evolution of cloud. As AWS, Microsoft and Google have long since emerged victorious in the infrastructure space, the current battleground focuses on cloud management and migration.

Many of these companies are now being snapped up by the behemoths – CloudHealthTech being bought by VMware, Microsoft acquiring Cloudyn – and as Michael Liebow, global managing director at Accenture notes, there are many other niche solutions out there – and they’re all tempting acquisition targets.

“The fact is, companies that choose to build their own cloud management capabilities face a serious dilemma,” Liebow wrote. “A company that bets big on a capability, assuming it will be predictable or stable for some period of time, are likely wrong.

“The focus for most organisations should be on the level of innovation and new services coming from the cloud providers.”

CloudEndure, which was founded in 2012, had acquired $18.2 million across three funding rounds before acquisition. Its series B funding comprised of two rounds, in December 2015 and March 2016, raising $6m and $7m respectively. The company’s primary funder was Magma Venture Partners, while co-lead on its most recent funding was IT consultancy firm Infosys. Financials were not disclosed, although Israeli media posited the figure was around the $200m-$250m mark.

CloudTech has reached out for comment and will update this story in due course.

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IBM thinks it has gained a head-start on the slowly emerging quantum market with the launch of what it has described as the first commercially useable integrated quantum computing system.

Quantum computing is based on the principles of quantum mechanics and aims to take advantage of subatomic particles existing in more than one state at any time. Its much-vaunted potential therefore is in its ability to read between the lines and come up with calculations we can only dream of today.

It has the potential to make current standards fall desperately short. For instance, according to Microsoft, while classical computers would take one billion years to break encryptions such as RSA, a quantum research project the company is aiming to put together in 2019 would break it in 100 seconds.

The IBM Q System One, once released, can be seen as something of a milestone in the processes involved. The sheer technological effort thus far has ensured practically any quantum project has gone no further than the laboratory stage. Even the most minimal fluctuations in temperature, or the merest ambient noise will put qubits awry, which have only 100 microseconds of useful lifespan as it stands anyway.

To help mitigate against this, IBM’s design includes a nine foot tall, nine foot wide case of half-inch thick glass forming an airtight enclosure that can open effortlessly using motor-driven rotation. The company certainly didn’t skimp when it came to the design, enlisting multiple design studios alongside Goppion, a Milan-based manufacturer of high-end museum display cases whose ‘clients’ include the Mona Lisa and the Crown Jewels at the Tower of London.

“For the first time ever, IBM Q System One enables universal approximate superconducting quantum computers to operate beyond the confines of the research lab,” IBM trumpeted in a press release. “The IBM Q System One is a major step forward in the commercialisation of quantum computing,” said Arvind Krishna, SVP hybrid cloud and director of IBM research. “This new system is critical in expanding quantum computing beyond the walls of the research lab as we work to develop practical quantum applications for business and science.”

More than meets the eye

Don’t think you can fill out a form, send it off and then receive a shiny box from IBM in return just yet, however. The company did not reveal how much a machine would theoretically cost, nor even a provisional release date.

The Q System One is a 20 qubit computer which, in real-world terms, unfortunately does not account for very much today. Towards the end of 2017 IBM reached the 20 qubit milestone with 50 the next target. Yet to put that in comparison, James Clarke, who heads up Intel’s quantum research unit, told New Scientist at the start of this year his team was looking to longer-term goals, saying a device will need a million qubits before it has a truly significant impact.

IEEE, the engineering standards organisation, has long had something of a sceptical view around the timeframes regarding quantum initiatives. Travis S. Humble, distinguished scientist at Oak Ridge National Laboratory who leads the IEEE working group around quantum computing, wrote for this publication a note of caution that despite it being a ‘pivotal point’ in the technology’s development, ‘many eyes [were] watching the road ahead, but [not] moving forward.’

Writing for the IEEE in November Mikhail Dyakonov, researcher in theoretical physics at the University of Montpellier, put it particularly succinctly. “A useful quantum computer needs to process a set of continuous parameters that is larger than the number of subatomic particles in the observable universe,” he wrote.

So are IBM, Intel, Microsoft et al all therefore ploughing millions of dollars into a wild goose chase? Not yet at least. Analyst firm CCS Insight posited that those who are interested in cloud should become interested in quantum and its potential to ease the burden currently experienced by silicon workloads. The company predicted in October that IBM would win the race to launch the first commercial quantum computing applications, putting the year at 2022.

Alternately, let The Verge give a different perspective on the Q System One launch. “[They are] still very much experimental devices…supposed to be research tools,” wrote James Vincent, “letting us work out, qubit by qubit, how quantum devices might work at all."

Picture credit: IBM

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