All posts by James

Microsoft looks to simplify IoT with SaaS for new release

Microsoft has announced the launch of Microsoft IoT Central, a software as a service (SaaS) offering which aims to reduce the complexity of Internet of Things solutions for customers.

The new launch goes hand in hand with Microsoft’s current platform as a service (PaaS), Azure IoT Suite, built on the Azure cloud, with the latter enabling deep customisation and control of implementations. IoT Central ‘has the potential to dramatically increase the speed at which manufacturers can innovate and bring new products to market, as well as lower the barriers to creating IoT solutions that generate new revenue opportunities and better experiences for customers’, the company said.

“The Internet of Things is quickly becoming a critical aspect of doing business,” Sam George, partner director at Microsoft Azure IoT wrote in a blog post. “In the same way that web, mobile and cloud technologies have powered digital transformation, IoT is the next big catalyst.

“Yet while IoT brings a new set of benefits for companies that want to keep an edge on their competition, it brings challenges too – IoT solutions can still be complex, and a shortage of skills makes it difficult for everyone to take advantage of this new innovation.”  

This is not the only announcement Microsoft is making in this area. The Redmond giant will also be introducing Connected Factory, a preconfigured solution in Azure IoT Suite which aims to give those in the industrial sector an easy on-ramp to increase the performance on a factory floor, connecting and monitoring industrial equipment. Alongside this is another new service in the form of Azure Time Series Insights, which is a fully managed analytics, storage and visualisation service which gives users an interactive and instant interface to analyse billions of events from an IoT solution.

Yet the cloud is not always the answer for connectivity across a plethora of devices. For areas where connectivity is spotty, Microsoft has also launched the preview of Azure Stream Analytics for edge devices. “This approach enables organisations to use streaming analytics in scenarios where connectivity to the cloud is limited or inconsistent, but the need for quick insight and proactive actions are essential to run the business,” George added.

AWS distinguished engineer questions Oracle cloud data centre claims

Oracle’s penchant for calling out its rivals in the cloud arena has got something of a response: James Hamilton, distinguished engineer at Amazon Web Services (AWS), has taken issue with a comment made by Oracle co-CEO Mark Hurd around the speed of the Redwood giant’s data centres.

Speaking to Fortune, Hurd said in response to a question about its capability and spend on data centres compared to other players in the market: “If I have two times faster computers, I don’t need as many data centres. If I can speed up the database, maybe I need one fourth as many data centres.”

According to the Fortune article, citing analysis from the Wall Street Journal, the three biggest public cloud vendors – AWS, Microsoft, and Google – spent between them approximately $31 billion on data centre capacity. Oracle, by comparison, spent about $1.7 billion.

AWS currently has 42 ‘availability zones’ – data centres, in other words – worldwide across eight regions, including the AWS GovCloud. Each geographic location has at least two zones, with Northern Virginia having the most with five, while new regions are being planned for Paris, Ningxia, and Stockholm.

Oracle’s complete list is more difficult to pin down, although the company said in January it had gone up to 29 geographic regions globally with expansions back in January, with regions in Reston, Virginia, London and Turkey available by mid-2017 and further plans for APAC, North America and the Middle East in 2018. It’s worth noting however that, as per a previous Fortune article, each Oracle region contains three domains, all with their own independent power and cooling, so if one failed the other would keep operating.

Hamilton’s response, on his personal blog earlier this week, disagreed with Hurd’s recent comments. “Of course, I don’t believe that Oracle has, or will ever get, servers 2x faster than the big three cloud providers,” he wrote. “I also would argue that ‘speeding up the database’ isn’t something Oracle is uniquely positioned to offer.

“All major cloud providers have deep database investments but, ignoring that, extraordinary database performance won’t change most of the factors that force successful cloud providers to offer a large multi-national data centre footprint to serve the world,” Hamilton added.

Hamilton also argues that, while the ‘most efficient number of data centres per region is one’ and there are some gains in having one large facility, it’s not wise to put all your eggs in one basket. “One facility will have some very serious and difficult-to-avoid full facility fault modes like flood and, to a lesser extent, fire,” he wrote. “It’s absolutely necessary to have two independent facilities per region and it’s actually much more efficient and easy to manage with three.

“2+1 redundancy is cheaper than 1+1 and, when there are three facilities, a single facility can experience a fault without eliminating all redundancy from the system,” Hamilton added. “Consequently, whenever AWS goes into a new region, it’s usual that three new facilities be opened rather than just one with some racks on different power domains.”

This has been rumbling on for the past several months; or specifically, since September last year, when Oracle launched its next generation data centres at its OpenWorld event, where Larry Ellison, co-founder and chief technology officer, said “Amazon’s lead is over” in infrastructure as a service.

Last month, when Oracle announced a $1.2 billion cloud quarter as part of its latest financial results, Ellison continued the theme. “Let’s say, generation two or Oracle’s infrastructure as [a] service cloud now has the ability to run customers’ largest databases, something that is impossible to do using Amazon Web Services,” he told analysts. “Many Oracle workloads now run 10 times faster in the Oracle cloud versus the Amazon cloud. It also costs less to run Oracle workloads in the Oracle cloud than the Amazon cloud.”

Hamilton’s relationship with AWS goes back further than when he joined the company in 2008; he cited the launch of S3 (Simple Storage Service) in 2006 as ‘game-changing’ and a factor in moving from his then employer.

Cloud pricing war moves from VMs to object storage, 451 Research argues

The battlefield for cloud pricing will shift from virtual machines to object storage, with databases among others undergoing similar pressures in the next 18 months, according to the latest note from 451 Research.

The trend of vendors undercutting each other for VMs has long been apparent; take January last year as just one example, where Microsoft announced price reductions of up to 17% on its Azure D-series Dv2 VMs shortly after Amazon Web services announced their latest cuts.

According to the figures, obtained via 451 Research’s Cloud Price Index, object storage prices are declining across every region, including a drop of 14% over the past year.

451 puts price cuts beyond compute down to an ever-maturing market and an increase in cloud-native development, although adding that the market ‘is not highly price-sensitive at this time, although naturally, end users want to make sure they are paying a reasonable price’.

“The big cloud providers appear to be playing an aggressive game of tit for tat, cutting object storage prices to avoid standing out as expensive,” said Jean Atelsek, digital economics unit analyst at 451 Research in a statement. “This is the first time there has been a big price war outside compute, and it reflects object storage’s move into the mainstream.

“While price cuts are good news for cloud buyers, they are now faced with a new level of complexity when comparing providers,” Atelsek added.

One analyst firm which attempts to solve the imbroglio of cloud pricing for customers is Cloud Spectator, who issues a yearly report outlining the best vendors taking into account both price and performance. The company’s analysis puts 1&1 at the top of the charts, giving it the benchmark score of 100 out of 100, with AWS (24), Azure (27) and Google (48) struggling by comparison, although adding performance on VMs was less variable with the major players.

Back in May, 451 Research argued there was a ‘very limited relationship’ between price and market share and that the ‘race to the bottom’ was something of a misnomer, with the supply of higher value services being key to long term growth for vendors.

You can find out more about the Cloud Price Index here.

SoftBank leads $16.5m funding round for Dome9 Security

Dome9 Security, an Israeli cloud infrastructure provider, has announced the close of $16.5 million (£12.8m) in series C funding led by Japanese tech giant SoftBank.

Alongside the funding, SoftBank will also be the leading distributor of the Dome9 Arc cloud infrastructure security platform in the Japanese market.

Dome9, which was founded in 2010, aims to provide verifiable infrastructure security for every public cloud, including the primary suspects of Amazon Web Services (AWS), Microsoft Azure and Google Cloud Platform. Dome9 Arc is a software as a service platform which enables organisations to visualise their security posture, identify and mitigate risks at all times across public cloud infrastructure environments. The platform also enables greater integration and security for DevOps teams.

The move indicates a further shift by SoftBank towards cloud technologies. In December last year, the company announced a venture alongside Chinese firm Alibaba, offering packaged Alibaba Cloud services for the Japanese market under the name of SB Cloud.

“As enterprise adoption of the cloud continues to accelerate, there is a growing need for cloud-native solutions that simplify security operations and compliance,” said Masayuki Motoshima, director of cyber security business development at SoftBank Corp in a statement. “Dome9’s strong traction in the enterprise market attests to the value the technology delivers, and led to our decision to invest.”

This publication first shone a spotlight on Dome9 in 2011, arguing the company was ‘one of several to crowd an increasingly busy market sector’. The company has won several awards since then, including being named as a 2016 emerging vendor by Computer Reseller News. The company’s total funding now stands at $29 million.

Organisations looking to spend more on AWS cloud-native services, research says

Spend on Amazon Web Services (AWS) cloud-native services, including serverless compute AWS Lambda, data warehouse Amazon Redshift, and streaming platform Amazon Kinesis, is set to go up this year, according to a new study from 2nd Watch.

The Seattle-based firm, an AWS premier partner, found that of 1,000 US IT and business executives, almost half (48%) said they plan to spend at least 10% more on Amazon’s cloud-native options. 35% of all respondents said they planned to spend between 10% and 20% more, compared with 13% who planned to spend 21% to 30% more.

When it comes to reasons for adoption, it all comes down to money, whichever side of the equation you are on. 31% of those polled said the opportunity to increase revenue was the biggest driver for using cloud-native services, while 24% cited the opportunity to decrease costs. Enhanced customer service (22%) and the desire to achieve a faster time to market on new products (20%) were also cited.

Two thirds (66%) of respondents say they expect return on investment from these services, either now or soon.

“The survey results are consistent with what we’re seeing and hearing from our customers,” said Jeff Aden, co-founder at 2nd Watch in a statement. “They are making new investments into these cloud-native services as payoff from previous investments show up, and they’re looking for new ways of creating value and driving down costs.

“As far as challenges go, the largest enterprises will continue seeking support from leading providers that are experts in public cloud and have experience migrating and managing enterprise workloads,” Aden added.

Logicworks, another AWS partner, has previously discussed the importance of services such as Lambda in particular in this publication, describing it in a piece one year ago as ‘in many ways the future of infrastructure-as-code and cloud automation’. “Although it is likely not being adopted by many AWS cloud consumers at this point, it has generated buzz since its spotlight at Re:Invent 2015 and will likely reach many more milestones,” the company wrote.

With this latest research, it seems there is plenty of truth in that last statement.

Cloudera sets IPO price at $12 to $14 a share, eyes near $2bn valuation

Cloud tech IPOs seem to be like buses; you wait ages for one, then two come along at once. After Okta went public earlier this month, Cloudera, a data management platform provider, said it expects its initial public offering price to be between $12 and $14 per share for 15 million shares.

The company expects 128,064,103 shares to be outstanding after its initial offering, putting its valuation at approximately $1.8 billion, and between $2.2bn and $2.4bn including options and grants.

Cloudera, based in Palo Alto, has consistently featured at the sharp end of top private cloud companies. Forbes had the firm in its top five private companies leading cloud computing in 2016, behind Slack, Dropbox, DocuSign and Stripe, while figures from recruitment firm Glassdoor last year, based on the top 100 cloud vendors list from Computer Reseller News, put the firm in the top 10 as a desirable employer, with CEO Tom Reilly given a 93% approval rating.

The company outlines its modus operandi in the filing to the SEC. “Cloudera empowers organisations to become data-driven enterprises in the newly hyperconnected world,” it reads. “We allow enterprises to operate, manage and move workloads across multiple architectures, mixing on-premises and cloud environments, including all major public cloud infrastructure providers. We believe that our solution is the most widely adopted big data platform, with a growing range of applications being built on it.”

As is often the case, Cloudera has recorded losses of $135.4m, $203.1m and $187.3m for its 2015, 2016, and 2017 financial years, adding that it expects the trend to continue ‘for the foreseeable future’. Since 2009 and its series A funding round of $5m, more than $1bn has been raised for the company, the largest being $740m in March 2014 led by Intel.

The firm adds that its competitors are in four categories; legacy data management product providers, such as HP, IBM and Oracle; public cloud providers with data management and analytics offerings, such as AWS, Google and Microsoft; strategic partners who may also offer competitors’ technology; and open source companies, like Hortonworks and MapR.

A letter from the founder, Christophe Bisciglia, examines the opportunity the company faces. “In 2008, we saw the confluence of big data and the cloud as a huge opportunity. In 2017, it’s clear that we underestimated it,” Bisciglia wrote. “The cloud is better, faster and much cheaper than it was then.

“There is more data available than ever before,” he added. “We thought we had big data back then. We were only getting started. New data is coming from trading systems, from jet engines, from diagnostic devices in hospitals, from factory floors, from cars and trucks, from people – from everywhere. Over the last nine years, we have learned that data makes things that are impossible today, possible tomorrow.”

As affirmed by Byron Deeter of Bessemer Venture Partners, the five cloud IPOs of 2016 – Apptio, Blackline, Coupa, Everbridge and Twilio – represented the lowest number since the financial crisis of 2008.

Research reveals extent of ‘aggressive’ hyperscale operator growth in cloud markets

Hyperscale operators are ‘aggressively’ growing their share of cloud service markets, according to the latest note from Synergy Research.

The analyst firm identifies 24 companies in all which meet its definition of ‘hyperscale’ – not surprisingly including the four main infrastructure players, Amazon Web Services (AWS), Microsoft, IBM, and Google – and argues these companies accounted for more than two thirds (68%) of the overall cloud infrastructure services market.

Back in December, Synergy noted that hyperscale providers operated more than 300 global data centres between them, expecting this number to surpass 400 by 2018. Of that figure, almost half (45%) of data centres were in the US, with China (8%), Japan (7%) and UK (5%) trailing far behind. The company says the current figure is now approaching 320.

This time around, the focus is on the growing dominance of the biggest players in cloud infrastructure markets, including infrastructure as a service (IaaS), platform as a service (PaaS), and private hosted cloud services. By comparison, in 2012 hyperscale operators accounted for 47% of each of those markets.

As Synergy puts it, the ‘scale of infrastructure investment required to be a leading player in cloud services or cloud-enabled services means that few companies are able to keep pace with the hyperscale operators…and they continue to both increase their share of service markets and account for an ever-larger portion of spend on data centre infrastructure equipment.’

“Hyperscale operators are now dominating the IT landscape in so many different ways. They are reshaping the services market, radically changing IT spending patterns within enterprises, and causing major disruptions among infrastructure technology vendors,” said John Dinsdale, research director and a chief analyst at Synergy. “Our latest forecasts show these factors being accentuated over the next five years.”

Why it’s still important to educate your employees around cloud security, VPNs, and Wi-Fi

(c)iStock.com/themacx

Sponsored For those at the coalface of the security industry, the feeling of metaphorically banging one’s head against a brick wall, of continually educating, re-educating and correcting misinformation, mischievous or otherwise, will feel all too familiar.

Take the comments from Home Secretary Amber Rudd around WhatsApp following the terror attack in Westminster. Following the disclosure that the messaging service was used moments before the attacker struck, Rudd’s remarks – “there should be no place for terrorists to hide” – were met with a certain level of dismay in the industry.

Graham Cluley, a long-standing independent security analyst, put it this way. “There is a danger that politicians will take ghastly incidents of terror as a platform to push forward their agenda of weakening encryption,” he wrote. “It makes them sound tough in the fight against terror – at least to people who don’t know much about technology. But it won’t make a blind jot of difference to bad guys.”

With other technologies, such as cloud and Wi-Fi, a similar effect occurs. Last month David Linthicum, a highly-respected cloud thought leader, wrote about how the battle for cloud security in enterprises is increasingly not a technological one. “The truth is that competent cloud security technology is available, and most IT organisations’ cloud teams are good at finding and using it,” he wrote in InfoWorld. “To achieve solid cloud security, departments across IT need to come together, both those that focus on legacy and those that focus on cloud computing.

“In reality, this union has proven to be difficult. Why? The people down the hall are dead set against you driving change.”

One firm which looks at how employees deal with these situations is mobile connectivity provider iPass. The company issues a yearly report around mobile security, with last year’s revealing that almost two thirds of organisations ban their mobile workforce from accessing free Wi-Fi hotspots. In addition, 94% of respondents said free Wi-Fi was either ‘very much’ or ‘somewhat’ of a threat to their company. This is backed up elsewhere; Xirrus, in a recent report, found that 91% of Wi-Fi users did not believe it was secure, yet 89% continued to use it anyway.

Raghu Konka is vice president of engineering at iPass. He argues that ‘all security challenges are both organisational and technological to varying degrees’, but adds a caveat. “Education is hugely important, and employees need to understand that security is their responsibility as well, not just those in IT,” he explains. “However, relying on employees to do this for themselves, and to always follow best practice, is a sure-fire way to get hacked.”

One element of best practice which should be – but is not always – followed is around VPNs. The iPass study found that only one in five (21%) US firms polled were ‘fully confident’ their workforce always used the company’s VPN. “Employees still need to be more aware of VPNs as commonly the ‘last mile’ is where a user’s data is most vulnerable. However, by using a VPN, data is masked and encrypted, protecting people from the infamous ‘man in the middle’ attacks, and unwittingly exposing their online data to malicious activity,” says Konka.

“In today’s ‘Wi-Fi first’ world, it is imperative that mobile workers are equipped with the requisite tools to get online and remain productive, while simultaneously ensuring the security of corporate data from wherever it is being accessed,” he adds.

All that said, the onus is not entirely on the employee. Konka argues that employers taking actions such as simply banning public Wi-Fi will be a stop gap as workers will just find a way around it. “Getting employees to use VPNs, for instance, should primarily be a technology issue,” he says. “Employers need to provide zero touch technology solutions to cover employee misuse and mistakes, as well as any inevitable gaps in education, training and awareness.”

Sometimes, however, it’s a question of watching the watchers. Last week, an article on Motherboard debunked a service calling itself MySafeVPN, after it spammed a database of media player provider Plex. Among the various issues which led people to suspect the service was not entirely legitimate, the company’s sign up page had no SSL, its headquarters was traced to a Vietnamese restaurant, and some users reported visiting the website triggered an anti-virus warning.

As the Motherboard story argues, the emergence of operations such as MySafeVPN may well be linked to new US legislation which allows internet service providers to sell users’ browsing history to the highest bidder.

Konka hopes VPN services – reputable ones, that is – will see an uptake following the vote, which was passed in the House of Representatives by 215 votes to 205, but is not entirely confident. “General awareness around VPNs is likely to rise as a result of the ISP privacy vote, but we can’t rely on there being an instantaneous surge in VPN use,” he says. “When privacy and security are concerned, apathy regularly trumps reason.”

For those in the security industry, it’s a continual goal to make reason trump apathy.

This post is brought to you by TheBestVPN.com. Find out more about them here.

IDC: Global cloud IT infrastructure spend hit $32.6 billion in 2016

Vendor revenue from sales of infrastructure products for cloud IT, including server, storage and Ethernet switch, grew to $32.6 billion in 2016 at a 9.2% year on year climb, according to the latest note from IDC.

The missive, which appears in the company’s latest quarterly cloud IT infrastructure tracker, found that cloud IT infrastructure sales, as a share of overall global IT spending, was at 37.2% in Q416, up from 33.4% this time last year.

Private cloud infrastructure growth was led by Ethernet switch at 52.7% year on year, ahead of server (9.3% growth) and storage (3.6%). For public cloud, it was a similar story; Ethernet switch (30%) and server (2.4%) grew, while storage declined by 2.1%. Revenue in traditional IT infrastructure – in other words, not cloud – decreased 9% year over year in the fourth quarter.

Looking at the leading vendors, Dell, Hewlett Packard Enterprise (HPE) and Cisco remain top, albeit with the former two losing market share and revenue year over year, finishing at 17.3% and 14.6% share respectively. Cisco grew 23.1% in revenue and 1.5% market share to 11.3%, while the biggest climbers were Huawei, moving ahead of IBM with a 61.4% revenue growth year on year. IBM, Lenovo and NetApp were tied for fifth.

iCharts

“Growth slowed to single digits in 2016 in the cloud infrastructure market as hyperscale cloud data centre growth continued its pause,” said Kuba Stolarski, IDC research director for computing platforms in a statement. “Network upgrades continue to be the focus of public cloud deployments, as network bandwidth has become by far the largest bottleneck in cloud data centres.

“After some delays for a few hyperscalers, data centre buildouts and refresh are expected to accelerate throughout 2017, built on newer generation hardware, primarily using Intel’s Skylake architecture,” Stolarski added.

Washington DC and Dallas hottest US colocation growth markets, report notes

Silicon Valley may be the epicentre of the vast majority of technological innovation – yet according to the latest note from Synergy Research, Dallas and Washington DC are the leading growth markets for colocation, headed by Digital Realty and Equinix.

The analyst firm noted that Dallas and Washington both grew at almost twice the rate of the national market, with revenue growth in those two areas, alongside Chicago, picking up ‘strongly’ in 2016. The top 10 metro areas accounted for almost three quarters (74%) of US retail and wholesale colocation revenues last year.

Alongside Digital Realty and Equinix, other vendors at the sharp end of the market include DuPont Fabros (Washington and North Virginia), QTS (Atlanta), and CyrusOne (Austin), with AT&T, CenturyLink, Coresite, Infomart, NTT, SunGard and Verizon also mentioned in dispatches.

“Colocation is an increasingly global market but also demands highly localised services focused on data centre facilities close to clients in key economic hubs,” said John Dinsdale, research director and a chief analyst at Synergy. “This combination of global and local factors has been a major factor in driving the ongoing industry consolidation. Another key feature in the market is the aggressive growth of cloud, which has helped the US wholesale market to grow twice as rapidly as retail colocation.”

Looking at the global perspective, a note from Synergy in January found that Equinix, Digital Realty and NTT are by some distance the three main players in the market, growing three times as fast as the overall market over the last four quarters.

The jockeying for position between the top three has also been of interest in recent months; Equinix purchased Digital Realty’s Paris operations – real estate and data centre facility – for approximately $211 million in August, as well as buying 29 data centres from Verizon for $3.6 billion in December. The previous month saw CenturyLink buying Level 3 Communications, as well as selling off 57 of its data centres to a consortium.