All posts by Jamie Davies

Employees are biggest security inhibitor – survey

Cybersecurity2A survey from Citrix and Censuswide has revealed employee negligence and indifference to IT policy is one of the most significant inhibitors to cloud security.

Polling around 2000 IT workers, the results showed respondents have a much more stringent approach to security at home than in work, while older younger employees are more likely to ignore company protocols when using devices and platforms.

“This research demonstrates that despite many individuals being well aware of basic precautions for handling their own personal data, too many are not so conscientious at work,” said Chris Mayers, Chief Security Architect at Citrix. “Employers have a responsibility to provide the tools and safeguards: employees need to use them.  Protecting a company’s digital assets is a two way street.”

The survey highlighted specifically that while 45% of workers are likely to use passwords to secure documents at home, this number drops to 35% at work. In terms of shredding and disposing of important documents, 68% would do this at home, whereas only 40% would do it in the work environment.

Despite security being consistently highlighted as a top concern for decision makers and the board, industry insiders have told BCN the company culture, as opposed to the technical challenges, should be more of a priority. The importance of security is underplayed by employees as they do not appreciate the threat of downloading unauthorized software or using public cloud platforms that are not approved by the IT department.

Our sources highlighted that board members in enterprise are focusing their attention on technology to address security challenges, when very little will change if the culture towards security is not altered, and education programmes are not launched.

The survey results also highlighted there is a much more relaxed approach to security from younger generations. Respondents aged over 55 are more likely to only use work devices with trusted company security software, 59%, compared to 47% of those aged between 25 and 34.

IBM partners with Aberdeen University to bring Watson to medical research

IBM2The University of Aberdeen has recently announced a partnership with IBM, which will allow students and staff to utilise Watson Engagement Advisor.

IBM scientists are collaborating with researchers at the university on the EU Marie Curie K-Drive project, an initiative which explores a number of different use cases for big data and knowledge graphs, including the treatment of cancer. The results of the project will also form the foundation of any proposals put forward by the university for the EU Horizon 2020 Programme.

“Cognitive represents an entirely new model of computing that includes a range of technology innovations in analytics, natural language processing and machine learning,” said Paul Fryer, Academic Initiative Leader at IBM. “The collaboration between IBM and the University of Aberdeen, which builds on a long-standing relationship, aims to help nurture the next generation of innovators; and is the first initiative of this type in Scotland.”

The university is now one of four in the UK to have access to the Watson Engagement Advisor, which will be used by students and staff to forward their cognitive computing research.

“The partnership with IBM is an exciting opportunity to advance our research in this area,” said Dr Jeff Z. Pan, coordinator of the K-Drive project at the university. “Cognitive computing is empowering human decision-making processes by understanding and exploiting data which is structured and unstructured, and our research is focused on how to make the best use of both types of data.”

Watson’s marketing messaging has primarily focused around the commercialization of artificial intelligence and big data. The partnership with the University of Aberdeen and the K-Drive project builds on IBM’s efforts to demonstrate the real-world viability. Over recent weeks, IBM has announced a number of collaborations to utilize the Watson proposition, including with Mastercard and the Honda Formula One team.

IBM and Honda announced that Watson technology would be incorporated into the McLaren Honda Formula One cars and pits to improve performance and racing decisions in real-time. The sensors will collect data from a number of different sources including driver timing, fuel flow rates and engine performance. The partnership is in reaction to new regulations that required all Formula One cars to use hybrid engines and limited fuel consumption during races.

“With the rapid growth of the Internet of Things, by 2025, every car will be connected in some way exuding vast amounts of streaming data ranging from traffic updates to health of the vehicle, operations and more,” said Harriet Green, GM for Watson IoT at IBM. “We are excited to team with Honda to provide sophisticated cognitive IoT capabilities and analytics to combine data directly from the F1 racing vehicles with other sources, allowing Honda to not only enhance its vehicles that are built for speed, but to also be more friendly to our environment.”

Apple reportedly defects iCloud from AWS to Google Cloud

iCloud-croppedApple has moved some of its iCloud services onto Google Cloud, reducing its reliance on AWS, according to a CRN report.

Though it will still remain an AWS customer, the story states Google claims Apple will now be spending between $400 million and $600 million on its cloud platform. Last month, financial services firm Morgan Stanley estimated Apple spends $1 billion annually on AWS public cloud, though this is likely to be reduced over the coming years as Apple invests more on its own datacentres.

The company currently operates four datacentres worldwide and apparently has plans to open three more. It has been widely reported that Apple has set aside $3.9 billion to open datacentres in Arizona, Ireland and Denmark, with plans to open the first later this year.

Google has been struggling to keep pace with AWS and Microsoft’s Azure, but recent deals indicate an improved performance. A recent survey from Rightscale demonstrated AWS’ dominance in the market, accounting for 57% of public cloud market share, while Azure currently commands seconds place and Google only accounts for 6% of the market.

To bolster its cloud business Google hired VMware co-founder Diane Greene to lead the business unit, which includes Google for Work, Cloud Platform, and Google Apps. The appointment, together with the acquisition of bebop, which was founded by Greene, highlights the company’s ambitions in the cloud world, where it claims it has larger data centre capacity than any other public cloud provider.

Industry insiders have told BCN that acquisitions such as this are one of the main reasons the public cloud market segment is becoming more competitive. Despite AWS’ market dominance, which some insiders attribute to it being first to market, offerings like Azure and Google are becoming more attractive propositions thanks in part to company and talent acquisitions.

Last month, the Google team secured another significant win after confirming music streaming service Spotify as a customer. Spotify had toyed with the idea of managing its own datacentres but said in its blog “The storage, compute and network services available from cloud providers are as high quality, high performance and low cost as what the traditional approach provides.” The company also highlighted that the decision was made based on Google value adds in its data platform and tools.

While Google and Apple have yet to comment on the deal, an Amazon spokesperson has implied the deal may not have happened at all, sending BCN the following emailed statement. “It’s kind of a puzzler to us because vendors who understand doing business with enterprises respect NDAs with their customers and don’t imply competitive defection where it doesn’t exist.”

The rumoured Apple/Google deal marks a tough couple of weeks for AWS. Aside from Apple and Spotify, the company also lost the majority of Dropbox’s business. AWS is still occupies a strong position in the public cloud market but there are increasing signs its competitors are raising their game.

Oracle records 40% growth in cloud business

OracleOracle announced its quarterly results with revenues at $9 billion, down 3% in comparison to the same period last year, though the cloud business recorded growth of 40%.

The company missed analyst expectations for total revenues, though earning per share was up at $0.64 versus the estimates of $0.62. Oracle played up growth in its cloud business, particularly PaaS and SaaS, where revenues were up 57% to $583 million. Total revenues for the cloud business stand at $735 million, though IaaS earnings were down 2% to $152 million.

“Our Cloud SaaS and PaaS revenue growth rate accelerated to 61% in constant currency in Q3,” said Oracle CEO, Safra Catz. “This dramatic revenue increase drove our non-GAAP SaaS and PaaS gross margins up to 51% in Q3 as compared with 43% in Q2. Our cloud business is now in a hyper-growth phase. Our gross margins are climbing toward our target of 80%.”

Although generally considered in the industry to be playing catch up, Oracle has been demonstrating healthy growth over recent months in comparison to competitors. The company claims that it grew twice as fast as Workday and three times faster than Salesforce.com, with the latter receiving particular attention on the earnings call.

“Oracle is now selling more new SaaS and PaaS annually recurring cloud revenue than any other company in the world including Salesforce.com,” said CTO Larry Ellison “We are growing much faster than Salesforce.com, more than twice as fast. Because we sell into a lot more SaaS and PaaS market than they do. We compete directly with Salesforce.com in every segment of the SaaS customer experience market including sales, service and market.”

Ellison also highlighted the potential for future growth in the SaaS segment, where Oracle operates in markets Salesforce.com doesn’t, in particular enterprise resource planning, ERP, and human capital management, HCM. The company is seemingly adamant in beating Salesforce.com at its own game to become the largest SaaS and PaaS company worldwide.

“Oracle Fusion ERP is the overall market leader in the enterprise cloud ERP market. I should say we have more than 10 times the number of ERP customers than Workday. And ERP has always been a much larger market than CRM. Salesforce.com is missing all of that ERP market opportunity,” said Ellison. “And that in term it should make it easy for Oracle to pass Salesforce.com and become the largest SaaS and PaaS cloud company in the world.”

The company anticipates growth will continue in the next quarter, though analysts anticipate a number of challengers to Oracle’s retained customers over the coming months. With competitors, including AWS and Microsoft, expanding their offering in the database business, the flexibility of Oracle’s proposition and pricing could be called into question.

“People are coming after us, because we are by far the market leader in database. If you’re in the database business, the only one you can come after is us,” said SVP Investor Relations, Ken Bond “So, of course, Amazon, they’re going to be in the database business too is coming after us, and of course Microsoft wants to be bigger in the database business, they have to come after us.”

Dropbox drops Amazon Web Services for in-house system

Hand Touching A Cloud Secured By Electronic LockDropbox has announced that it will no longer be utilizing Amazon Web Service’s cloud infrastructure, favouring its own in-house solution.

The project, named “Magic Pocket” has been in the works for over two and a half years, and will store and serve over 90% of users’ data on the company’s own custom-built infrastructure. Dropbox was one of Amazon’s first customers to utilize its S3 service to store bulk data eight years ago, but has commented that the relationship will continue in certain areas.

“As the needs of our users and customers kept growing, we decided to invest seriously in building our own in-house storage system,” said Akhil Gupta, Dropbox VP of Engineering. While the company has traditionally stored file content on Amazon, the hosting of metadata and Dropbox web servers has always been in data centres managed by Dropbox itself.

“There were a couple reasons behind this decision. First, one of our key product differentiators is performance. Bringing storage in-house allows us to customize the entire stack end-to-end and improve performance for our particular use case,” said Gupta. “Second, as one of the world’s leading providers of cloud services, our use case for block storage is unique. We can leverage our scale and particular use case to customize both the hardware and software, resulting in better unit economics.”

The company has witnessed healthy growth over recent years, recently passing the milestone of 500 million users and 500 petabytes of user data, prompting the in-house move. Back in 2012, the company only had around 40 petabytes of user data, demonstrating 12-fold growth in the last four years. Dropbox initially began building its own storage infrastructure in 2013, with the company first storing user files in house in February 2015. The team hit its goal of storing 90% of its data in-house on 7 October 2015.

“Magic Pocket became a major initiative in the summer of 2013. We’d built a small prototype as a proof of concept prior to this to get a sense of our workloads and file distributions. Software was a big part of the project, and we iterated on how to build this in production while validating rigorously at every stage,” said Gupta “We knew we’d be building one of only a handful of exabyte-scale storage systems in the world. It was clear to us from the beginning that we’d have to build everything from scratch, since there’s nothing in the open source community that’s proven to work reliably at our scale.”

The move highlights the transition through to private cloud as a business benefit once enterprise reaches a certain level. Zynga is another company who have a similar story, moving between private and public cloud in recent years. Zynga is now in the process of shifting its data back onto in-house infrastructure. Dropbox’s move highlights the potential for overhead reductions when effectively moving onto private cloud, though if the company fails to scale as planned, the move could become a financial burden.

While the move does result in AWS losing a substantial amount of business, it is not the end of the relationship. The team will continue to partner with Amazon for new projects, but will also offer its European customers the opportunity to store data on AWS infrastructure in Germany, should they request it.

Deutsche Telekom aims to increase European market share with Open Telekom Cloud launch

DTDeutsche Telekom has launched Open Telekom Cloud, a new public cloud platform with Huawei as the hardware and software solution provider, in an effort to increase its market share in the European public cloud segment.

The service will offer European enterprises on-demand, pay-as-you-go cloud services via an OpenStack-based Infrastructure-as-a-Service solution operated by T-Systems. The company ambition is to accelerate its position in the market segment, which is currently dominated by US players.

“We are adding a new, transformational cloud offering to our existing portfolio of cloud services,” said Deutsche Telekom CEO Tim Höttges at CeBIT in Hanover. “For our business customers in Europe this is an important new service to support their digitization, and a critical milestone for us in our ambition to be the leading provider of cloud services in Europe.”

“More and more customers are discovering the advantages of the public cloud. But they want a European alternative,” said Anette Bronder, Head of the T-Systems Digital Division. The move aims to capitalize on recent industry concerns over where data is being stored, as European customers are increasingly demanding that their data remain within the boundaries of the EU.

Located in Biere, Saxony-Anhalt, any data will be subject to German data protection policy, recognized as one of the most stringent globally. “Access to a scalable, inexpensive public cloud provided by a German service provider from a German data centre under German law will be very attractive to many customers in Germany” said Andreas Zilch, SVP at analyst firm Pierre Audoin Consultants. “The combination of a competitive service and German legal security represents a unique selling point right now.”

Deutsche Telekom and its subsidiary T-Systems have been offering cloud solutions since 2005. The data centre in Biere, and its twin in Madgeburg, hosts almost all of the company’s ecosystem partners, which includes the likes of Microsoft, SAP, Cisco, Salesforce, VMWare, Huawei, Oracle, SugarCRM, and Informatica.

The announcement also strengthens Huawei’s position in the European market, a long-term ambition for the Chinese tech giant. Huawei will provide hardware and software solutions, including servers, storage, networking and Cloud OS, while also the technical support for the public cloud services.

“The strategic partnership allows each party to fully play to their strengths, providing enterprises and the industry with various innovative public cloud services that are beyond those provided by over-the-top content players,” said Huawei Rotating CEO Eric Xu “At Huawei, we are confident that, with esteemed partners like Deutsche Telekom, we can turn Open Telekom Cloud into the standard of public cloud services for the industry at large.”

 

Google’s AlphaGo publicity stunt raises profile of AI and machine learning

Google AlphaGoWorld Go champion Lee Se-dol has beaten AlphaGo, an AI program developed by Google’s DeepMind unit this weekend, though he still trails the program 3-1 in the series.

Google’s publicity stunt highlights the progress which has been made in the world of artificial intelligence and machine learning, as commentators predicted a run-away victory for Se-dol.

DeepMind founder Demis Hassabis commented on Twitter “Lee Sedol is playing brilliantly! #AlphaGo thought it was doing well, but got confused on move 87. We are in trouble now…” allowing Se-dol to win the fourth game in the five game series. While the stunt demonstrates the potential of machine learning, Se-dol’s consolation victory proves that the technology is still capable of making mistakes.

The complexity of the game presented a number of problems for the DeepMind team, as traditional machine learning techniques would not enable the program to be successful. Traditional AI methods, which construct a search tree over all possible positions, would have required too much compute power due to the vast number of permutations within the game. The game is played primarily through intuition and feel, presenting a complex challenge for AI researchers.

The DeepMind team created a program that combined an advanced tree search with deep neural network, which enabled the program to play thousands of games with itself. The games allowed the machine to readjust its behaviour, a technique called reinforcement learning, to improve its performance day by day. This technique allows the machine to play human opponents in its own right, as opposed to mimic other players which it has studied. Commentators who has watched all four games have repeatedly questioned whether some of the moves put forward by AlphaGo were mistakes or simply unconventional strategies devised by the reinforcement learning technique.

Although the AlphaGo program demonstrates progress as well as an alternative means to build machine learning techniques, the defeat highlights that AI is still fallible; there is still some way to go before AI will become the norm in the business world.

In other AI news Microsoft has also launched its own publicity stunt, though Minecraft. The AIX platform allows computer scientists to use the world of Minecraft as a test bed to improve their own artificial intelligence projects. The platform is currently available to a small number of academic researchers, though it will be available via an open-source licence during 2016.

Minecraft appeals to the mass market due to the endless possibilities offered to the users, however the open-ended nature of the game also lends itself to artificial intelligence researchers. From searching an unknown environment, to building structures, the platform offers researchers an open playing field to build custom scenarios and challenges for an acritical intelligence offering.

Aside from the limitless environment, Minecraft also offers a cheaper alternative for researchers. In a real world environment, researcher may deploy a robot in the field though any challenges may cause damage to the robot itself. For example, should the robot not be able to navigate around a ditch, this could result in costly repairs or even replacing the robot entirely. Falling into a ditch in Minecraft simply results in restarting the game and the experiment.

“Minecraft is the perfect platform for this kind of research because it’s this very open world,” said Katja Hofmann, lead researcher at the Machine Learning and Perception group at Microsoft Research Cambridge. “You can do survival mode, you can do ‘build battles’ with your friends, you can do courses, you can implement our own games. This is really exciting for artificial intelligence because it allows us to create games that stretch beyond current abilities.”

One of the main challenges the Microsoft team are aiming to address is the process of learning and addressing problems. Scientists have become very efficient at teaching machines to do specific tasks, though decision making in new situations is the next step in the journey. This “General Intelligence” is more similar to the complex manner in which humans learn and make decisions every day. “A computer algorithm may be able to take one task and do it as well or even better than an average adult, but it can’t compete with how an infant is taking in all sorts of inputs – light, smell, touch, sound, discomfort – and learning that if you cry chances are good that Mom will feed you,” Microsoft highlighted in its blog.

IBM announces $200 million Indosat Ooredoo cloud deal

Money cloudIBM has announced a five-year $200 million contract with Indosat Ooredoo to develop and deliver solutions on IBM’s cloud platform, Bluemix.

As part of the deal, IBM and Indosat Ooredoo will build an integrated command centre to serve local clients, of both organizations. The move forms part of IBM’s expansion plans for the cloud business, which coincides with the company’s recent win in South Africa, where it will open its first cloud data centre in the country.

“This collaboration shows how IBM’s expertise, technology and services can help Indosat Ooredoo and Lintasarta lead market change in Indonesia while also transforming their existing operations,” said Martin Jetter, SVP, IBM Global Technology Services.

Indonesia’s telco and technology market has been growing rapidly over recent years. Smartphone growth has been healthy in the world’s fourth most populous country, as penetration of total mobile phones is expected to reach 53% in 2017, up from an estimated 24% in 2013. This demonstrates huge potential for growth, as smartphone penetration in China during 2013 was estimated at around 71%.

Outside of Indonesia, the Asia-Pacific region is expected to be a significant growth area for the cloud industry. Market research firm IDC, estimates that by 2018, more than 70% of enterprise organizations in the region will access public cloud IaaS and SaaS capabilities via aggregation hubs.

Jakarta has regularly been quoted as the city which produces the largest number of tweets per day, though this is not solely down to consumers. Businesses regularly use social media, most notably twitter, to communicate with its customers, more so than in western markets.

“Use of smart mobile devices is becoming pervasive, opening up enormous opportunities for local businesses – so we are excited to be working with Indosat Ooredoo and Lintasarta to help clients tap into the power and flexibility of cloud-based solutions and digitally transform their businesses,” Jetter said.

Indosat Ooredoo’s subsidiary, Lintasarta, will jointly develop and deliver cloud-based solutions with IBM, accelerating collaboration and automation of software delivery and infrastructure changes. Customers of the telco will also have access to IBM’s cloud-based enterprise mobility management platform.

“We will be able to bring a greater range of higher value services to market more rapidly, with the confidence of knowing that we are collaborating with one of the world’s largest and most innovative technology companies,” said Alexander Rusli, President and CEO of Indosat Ooredoo. “This landmark alliance will reshape the local market and help Indonesian customers and organizations tap into the most advanced technology available anywhere in the world.”

Alongside the deal, IBM has also announced that it will open its first cloud data centre in South Africa. Working in collaboration with Gijima and Vodacom, the move aims to support cloud adoption and customer demand across the African continent.

“Our new Cloud Data Center gives customers a local onramp to IBM Cloud services including moving mission critical SAP workloads to the cloud with ease,” said Hamilton Ratshefola, IBM Country GM in South Africa. “It also gives customers the added flexibility of keeping data within country which is a key differentiator for IBM.”

The announcement adds to IBM’s growth on the continent, where it currently has a presence in at least 24 countries. IBM has highlighted that Africa is a substantial market for future international growth of its cloud business.

93% of enterprise now using cloud services – survey

business cloud network worldThe vast majority of IT professionals are now using at least one cloud-based service, according to a survey recently published by IT portal Spiceworks.

While 93% of respondents confirmed that they are using at least one cloud based service within their operations, the survey also highlighted IT professionals are still hesitant when considering emerging technologies.

Opportunities such as email hosting and cloud storage are increasingly being viewed as the norm, though IaaS is still met with some scepticism with only 20% of respondents currently using it, and only 16% considering its use in the next 12 months. EMEA professionals demonstrated a higher appetite for IaaS, with use 11 percentage points higher in EMEA than in North America.

In terms of current cloud services, web and email hosting are by far and away the most utilized, with 76% and 56% usage respectively. Online back-up and recovery appears to be the biggest growth area, with 35% of respondents currently using the service and 23% planning to engage over the next 12 months.

When building the business case for cloud transition, cost still remains the top priority for the majority of IT professionals. 71% of respondents highlighted this would be considered the number one reason for the transition, though cloud enabled innovation was only a driver for 3%. While early adopters are moving away from CAPEX/OPEX reductions as the business case for cloud adoption, the rising cost of hardware implementation and maintenance still drives mainstream cloud implementation.

The survey also highlighted that Shadow IT remains a challenge for a large part of the industry, as services which remain un-sanctioned by the IT team are still demonstrating high usage from the rest of the business. 33% of respondents highlighted they have deployed Dropbox services officially, but 78% of companies have employees using the service without IT approval. Google Drive was also being used in 59% of companies surveyed without approval from the IT team.

Microsoft Azure emerged as the most commonly used IaaS provider, accounting for 16%, closely followed by rival AWS at 13%. However 21% of respondents are considering Azure over the next twelve months, compared to only 11% weighing up AWS. The Microsoft team can be encouraged by these statistics, though this is a category which currently does not seem to have a clear market leader. Other brands highlighted by the survey in this space include Rackspace, Google and VMWare.

Despite AWS’s dominant market position, industry insiders questioned by BCN perceive Azure as the more effective platform. With Microsoft bolstering its ranks through strategic company and talent acquisition over the last 18-24 months, Azure is viewed as the more productive offering, despite being more expensive.

The results show a number of positive trends within the cloud industry, though still a number of worrying factors. 20% of IT services are cloud based today, and 30% of the respondents expect that within three years, more than half of their IT services will be cloud based. Conversely the culture of trusting public cloud services with company data/content without approval from the IT function seems to be a trend which isn’t disappearing.

HPE launches ‘machine-learning-as-a-service’ on Microsoft Azure

HPE office logoHPE has upgraded its Haven OnDemand proposition to deliver it as ‘machine learning as a service’ via Microsoft Azure.

The product offers a freemium model and has collected around 12,000 registered developers since the beta launch in 2014. Through the leadership of Haven OnDemand CTO, Chris Goodfellow, the service is built on the mantra of ‘the sum is greater than the parts’, utilizing more than 60 API’s which combine to provide machine learning capabilities.

“The software industry is on the cusp of a new era of breakthroughs, driven by machine learning that will power data-driven applications across all facets of life,” said Colin Mahony, GM of HPE Big Data. “HPE Haven OnDemand democratizes big data by bringing the power of machine learning, traditionally reserved for high-end, highly trained data scientists, to the mainstream developer community”

Haven OnDemand includes features designed for applications such as sentiment analysis in text, text extraction from images, face and logo recognition, social media analysis and speech recognition. Developers can also build a set of self-learning functions that analyze, predict and alert based on structured datasets. French start-up Ayni utilized the speech recognition API to help it create text transcripts of live audio streams on its foreign language education app.

Alongside the product development over the last 12 months, HPE has also run an active global hackathon program, which has provided feedback to help optimize the offering.

All HPE Haven OnDemand APIs and services are hosted on Microsoft Azure, building on the long-term strategic partnership between the two tech giants. Back in December, the partnership was extended as HPE appointed Microsoft Azure as a preferred public cloud partner. In return, HPE was granted preferred partner status in providing infrastructure and services for Microsoft hybrid cloud offerings.

“Organizations have massive quantities of information that can hold insights into business transformation, but harnessing it can be challenging,” said Garth Fort, General Manager, Partner and Channel Marketing, Cloud and Enterprise at Microsoft. “Leveraging the high performance and scalability of Azure, HPE Haven OnDemand brings our mutual customers a compelling solution to help turn their data into value.”