Category Archives: Datacentre

data proteciton, Datacentre, European Commission, News & Analysis, Safe Harbour

EC/US have three months to find a new Safe Harbour

The European Commission (EC) and the US are under pressure to come up with a new replacement system for the recently invalidated Safe Harbour agreement.

A statement from EU advisory body The Article 29 Working Party on the Protection of Individuals, has given those affected by the ruling three months to devise a new system.

However, the US and the EC have previously worked for two years without success to reform the Safe Harbour agreement. The reforms were made necessary after US government surveillance programmes were revealed by National Security Agency (NSA) whistle blower Edward Snowden. However, despite co-operation, for two years progress stalled as the US couldn’t guarantee limits on access to personal data.

“If by the end of January 2016, no appropriate solution is found with the US authorities and depending on the assessment of the transfer tools by the Working Party, EU data protection authorities are committed to take all necessary and appropriate actions, which may include coordinated enforcement actions,” said the statement issued.

Following Court of Justice of the European Union (CREU) ruling on October 6th, many companies risk being prosecuted by European privacy regulators if they transfer the data of EU citizen’s to the US without a demonstrable set of privacy safeguards.

The 4,000 firms that transfer their clients’ personal data to the United States currently have no means of demonstrating compliance to EC privacy regulations. As the legal situation currently stands, EU data protection law says companies cannot transfer EU citizens’ personal data to countries outside the EU which have insufficient privacy safeguards.

EU data protection authorities, meeting in Brussels to assess the implications of the ruling, said in a statement that they would assess the impact of the judgment on other data transfer systems, such as binding corporate rules and model clauses between companies.

The regulators said in their statement the EU and the United States should negotiate an “intergovernmental agreement” providing stronger privacy guarantees to EU citizens, including oversight on government access to data and legal redress mechanisms.

Multinationals can still set up internal privacy rules for US data transfers, to be approved by regulators but these so called ‘binding corporate rules’ are only used by 70 companies. All alternative data transfer systems could now also be at risk of a legal challenge, say lawyers. “The good news is that the European data protection authorities have agreed on a kind of grace period until the end of January,” said Monika Kuschewsky, a lawyer at Covington & Burling.

acquisition, colocation, Datacentre, Digital Reality, M&A, News & Analysis, Telx

Digital Realty completes acquisition of colocation rival Telx for $1.9 billion

datacentreGlobal data centre operator Digital Realty has completed the acquisition of colocation provider Telx in a deal valued at $1.886 billion. Telx will now operate as Digital Realty’s colocation and connectivity line of business.

Funding the acquisition doubles Digital Realty’s footprint in the colocation business and gives it a new interconnection platform, explained William Stein, Digital Realty’s Chief Executive Officer. Digital Realty raised gross proceeds of approximately $1.9 billion of debt and equity capital to fund the Telx acquisition, after settling its forward equity sale transactions with each of its forward counterparties to issue 10.5 million shares and receive $714 million.

Further funding was provided when subsidiary Digital Delta Holdings issued $500 million of 3.400 per cent Notes and $450 million of 4.750 per cent Notes. In August it raised $250 million by closing its underwritten public offering of 10 million shares of 6.350 per cent series I Cumulative Redeemable Preferred Stock.

Stein said the vendor is looking to blend its technical real estate expertise with a more expansive global reach as customers demand new products and services.

“The combination of Digital Realty’s and Telx’s portfolios of data centres and capacity gives customers the platform they need to grow and compete in a data-driven world.  Our focus will give them the ability to scale on a global basis,” said Stein. The company is now so big that nobody can compete with it, he argued. “This acquisition creates unrivalled choice and value, when and where our customers need it,” said Stein.

acquisition, Datacentre, Dell, EMC, hybrid cloud, M&A, News & Analysis, VMware

Dells finds $67 billion to acquire EMC and create cloud giant

Dell office logoAs extensively leaked PC and server outfit Dell today announced it will be acquiring storage giant EMC for $67 billion to create a leading player in the datacentre and cloud industries.

Dell is privately held by founder Michael Dell and VCs MSD Partners and Silver Lake. The combined company will remain private, while VMWare, which is majority owned by EMC will remain separate and publicly traded. This deal is the biggest tech M&A deal of all time and the resulting company will be one of the world’s largest privately held ones. Dell only cost $25 billion to take private, so it’s asking for a big contribution from its equity partners.

As with any massive M&A scale and efficiencies will be major strategic benefits, but the two companies were also keen to stress how much they complement each other, with Dell strongest in the SMB and public sector markets while EMC’s strongest area is blue-chip corporates. In terms of product portfolio the narrative inevitably refers frequently to end-to-end solutions and that sort of thing.

“The combination of Dell and EMC creates an enterprise solutions powerhouse bringing our customers industry leading innovation across their entire technology environment,” said Michael Dell. “Our new company will be exceptionally well-positioned for growth in the most strategic areas of next generation IT including digital transformation, software-defined data center, converged infrastructure, hybrid cloud, mobile and security.

“Our investments in R&D and innovation along with our privately-controlled structure will give us unmatched scale, strength and flexibility, deepening our relationships with customers of all sizes. I am incredibly excited to partner with the EMC, VMware, Pivotal, VCE, RSA and Virtustream teams and am personally committed to the success of our new company, our customers and partners.”
“I’m tremendously proud of everything we’ve built at EMC – from humble beginnings as a Boston-based startup to a global, world-class technology company with an unyielding dedication to our customers,” said Joe Tucci, CEO of EMC. “But the waves of change we now see in our industry are unprecedented and, to navigate this change, we must create a new company for a new era. I truly believe that the combination of EMC and Dell will prove to be a winning combination for our customers, employees, partners and shareholders.”
It’s not difficult to spot the customary synergies in this deal. When Dell went private it was primarily to allow a complete strategic overhaul away from the voracious quarterly demands of Wall Street. Fundamentally it wanted to move out of the highly commoditised PC market on which it was founded in the 80s, and into core enterprise IT sectors such as servers.

EMC has been in the enterprise data storage game for even longer, is been threatened by pure play cloud providers and needs to move with the times. Just as with Dell, EMC seems to be betting that removing the rabid short-termism that comes with being a public company will allow it the space to do that and, assuming MSD and Silver Lake remain patient the new company should be able to innovate and compete well in the cloud, virtualization and IoT worlds.

“We are excited and honoured to invest in the outstanding businesses built by Joe Tucci and his world-class management team,” said Egon Durban, managing partner of Silver Lake. “We believe the strategic integration of EMC and Dell will generate unparalleled depth and breadth across servers, storage, virtualization and the next era of converged infrastructure, creating a global technology platform poised for sustained long term growth and innovation in the years to come. We are doubling down and increasing our investment in this differentiated market leader for the next paradigm of enterprise computing.”

The plan is for Michael Dell to run the whole company and Tucci to move on when the deal is done. A deal this size will take a while to get approval and complete, so nothing concrete will happen for a few months yet. But when it does, the cloud market will hopefully be more competitive than ever.

Alibaba, AliCloud, Datacentre, News & Analysis

Alibaba announces second Silicon Valley datacentre

AlicloudAliCloud, the cloud computing arm of Chinese internet giant Alibaba, has announced the opening of its second datacentre in Silicon Valley.

This is the fourth new datacentre opened by AliCloud this year alone, and its ninth in total.Most of them are at various locations around China, but the company plans to extend its international footprint to other parts of Asia, as well as Europe and the Middle East before long.

This new Silicon Valley site will service the needs of west coast US customers, providing a bunch of cloud services such as: Elastic Compute, Analytic Database, Key-Value Store, Open Storage and Virtual Private Cloud.

“Our data centers are typically located in key innovation and commerce hubs around the world, where we expect growing demand for cost-efficient cloud computing and big data analytics services,” said Ethan Sicheng Yu, VP of AliCloud. “Our second U.S. data center is situated in Silicon Valley which is the epicentre for technology innovation world-wide.

“AliCloud is focused on building a comprehensive and holistic global ecosystem that offers world-class cloud computing and a nuanced understanding of local requirements. We expect to welcome more partners and customers onto the AliCloud platform as we extend our global reach and continue to deliver outstanding value for our cloud computing infrastructure services.”

Azure, Datacentre, Equinix, Microsoft, Microsoft Office 365, News & Analysis, Software as a service, TelecityGroup

Equinix and Telecity to offer Microsoft Azure ExpressRoute for Office 365

datacentre cloudData centre operators Equinix and TelecityGroup are both now offering Microsoft Azure ExpressRoute for Office 365 as part of their cloud offerings. Microsoft is understood to be announcing as many as five such partnerships with data centre operators.

Co-location specialist TelecityGroup said it is offering the cloud service to three distinct types of customer, these being enterprise customers, co-location partners and a reseller channel. The reseller channel itself is broken down three groups of telcos, managed service providers and systems integrators.

The nature of the market for Office 365 is broadening, according to Adi Ayyagani, the group head of market development for TelecityGroup. “Once interest was restricted to financial services and a couple of other early adopters, but now enterprises from every vertical market are showing an interest.”

TelecityGroup is offering the Office365 service on its software defined networking Cloud-IX platform. Though a number of operators are reportedly making ExpressRoute for Office 365 available, Ayyagani claimed that the Level 3 MPLS network that underpins Cloud-IX will make all the difference. “It means customers can get the service from anywhere, it’s more robust and there’s a greater level of integration available, so that configuration of the service is a lot simpler for service providers,” said Ayyagani.

The managed service providers, telcos and systems integrators reselling the cloud service will be able to use TelecityGroup’s broad footprint to access almost any market in Europe, the Middle East or African, said Ayyagani.

Meanwhile, global data centre operator Equinix has now announced worldwide availability of the cloud version of Microsoft Office for enterprises. The service improves the levels of data privacy since ExpressRoute enables most Office 365 network traffic to avoid the public Internet. Enterprises that use ExpressRoute in an Equinix data centre also get the benefit of being able to run hybrid and multi-cloud services that didn’t previously scale well over the Internet or over typical WAN works, it says.

“Office 365 customers can now benefit from predictable network performance and the ability to better manage network availability,” said Ross Ortega, Microsoft’s Principal Program Manager for Azure Networking.

China Unicom, Datacentre, News & Analysis, Telco Cloud, Telefonica

China Unicom and Telefónica in global data centre sharing agreement

Reflections are seen on a logo of Spain's telecommunications giant Telefonica in MadridTelefónica and China Unicom have agreed to share their international data centre capacity for multinational clients across Europe, The Americas and Asia.

The initial agreement covers three major data centres from each operator but, the companies say, this could be the first step towards larger scale cloud cooperation.

The pooling of resources means China Unicom can support customers seeking to expand into Europe and The Americas while Telefónica can strengthen its proposition across Asia.The cloud computing aspect of the agreement includes IaaS (Infrastructure as a Service) with virtual servers and multi-cloud solutions.

China Unicom’s customers can now benefit from Telefónica’s data centre presence in Sao Paolo in Brazil, Miami in the US and Alcalá de Henares in Madrid, Spain. The extent of the partnership will expand as Telefónica commits additional investment towards new infrastructure, facilities and multi-cloud solutions, it says. Conversely, Telefónica can use the cloud capacity of China Unicom’s data centres located across China in Langfang, Shanghai and Chongqing. This, it says, means it can offer end-to-end service delivery for its multinational customers.

China Unicom’s data centre provides international connectivity services including virtual private networks, multi protocol label switching (MPLS) and Global LAN. Internet access for customers’ servers can be offered as an option to the standard service. Every China Unicom Point of Presence comes with ‘meet me’ room services. The mutual colocation service also offers local support for customer equipment.

Telefónica has a presence in 21 countries and a customer base of 329 million accesses around the world, with its major markets being in Spain, Europe and Latin America. Telecom operator China Unicom offers mobile broadband (WCDMA, LTE FDD, TD-LTE), fixed-line broadband, GSM, fixed-line local access, ICT, data communications and related services. It has a total of 439 million subscribers.

Criteo, data centre, Datacentre, France, Hadoop, News & Analysis

Criteo to build giant private big data platform on Huawei servers

datacentre cloudPerformance marketing specialist Criteo has chosen Huawei to supply 700 servers for its new Hadoop Cluster data centre in Pantin, Seine St Denis, near Paris.

Huawei won the tender after its FusionServer RH2288H V3 impressed in a strict comparative study, it says. The servers were chosen for their abundance of high-capacity disks, which give the Criteo data centre a better storage density and cut energy consumption by 10 per cent, it claims.

The new Hadoop platform of Huawei servers will boost Criteo’s processing performance by 30 per cent, it’s claimed. In the first stage of the project, the 700 machines in the Paris data centre outperformed Criteo’s Amsterdam data centre, in terms of computing power and storage, even though the Dutch site has 1,200 servers at its disposal, according to Criteo’s Senior Engineering Manager for Infrastructure Operations, Matthieu Blumberg.

“This is the biggest private Hadoop platform in Europe as of today,” said Blumberg, “Huawei has undeniably good ICT solutions and extensive knowledge of Big Data. We were really impressed.”

As a result, Criteo now plans to install up to 5,000 servers, taking up 350 square meters of rack space, at its Pantin data centre. The total power consumption will rise to 2 MW as the power of the Huawei server estate grows, according to Blumberg.

“We are proud to have built this partnership with Criteo: this is the kind of project we love to develop,” said Robert Yang, Head of the Huawei France Enterprise Business Group.

Cisco, Datacentre, Enterprise IT, HP, News & Analysis

HP overtakes Cisco in cloud infrastructure equipment leadership battle

ServersHP is now the top selling supplier to the cloud infrastructure equipment market, having sat on the shoulder of market leader Cisco throughout 2013 and 2014, according to a study by the Synergy Research Group.

The research group’s sales figures for the two vendors showed them to be tied in the first quarter of 2015, but by Q2 HP had opened a lead after achieving much stronger sequential revenue growth. The two leading vendors are both achieving ‘stellar revenue growth’ in the burgeoning market, according to Synergy. However, while HP maintained a 13 per cent worldwide market share in Q2, Cisco’s share dropped by half a percentage point. The two front runners are followed by Microsoft, Dell, IBM, EMC, VMware, Lenovo and Oracle.

In the public cloud infrastructure equipment market Cisco still has a ‘commanding lead’, but HP has a clear lead in private cloud. Total cloud infrastructure equipment revenues, including hardware and software, are now running at $16 billion per quarter, having grown 25 per cent year on year.

HP leads the cloud infrastructure competition because of its dominance in the cloud server sector and its strong contention in storage, according to Synergy. Cisco’s challenge is upheld by its domination of networking, with support from its rapid ascension in the server market. Microsoft owes its high ranking to the success of its server operating system and virtualization applications. In the chasing pack, Dell and IBM both maintain strong positions with a respectable presence in a range of cloud technology markets.

Servers, operating systems, storage and networking combined account for 89 per cent of the cloud infrastructure market, according to Synergy’s figures. The balance of the market revenues are made from cloud security, cloud management and virtualization applications.

“The public cloud services market is clearly booming and driving heavy investment in cloud infrastructure, while a rapid transition to cloud is also in full swing in the enterprise IT market,” said Jeremy Duke, Synergy Research Group’s founder and chief analyst. “The good news for all vendors is that this huge market is growing rapidly and in aggregate the two leaders only account for a quarter of it – much the same as they did a year ago.”

Yesterday cloud service provider Ormuco, an HP Helion Network charter member, appointed Norwich based MigSolv as its UK data centre partner, adding another HP installation to the cloud infrastructure.

Datacentre, News & Analysis, Nokia, Telco Cloud

Nokia keen to promote its telco cloud portfolio

Nokia cloud service chainFinnish kit vendor Nokia is continuing to promote its nascent cloud offerings for telcos, three months after the launch of its AirFrame datacentre family of products, reports Telecoms.com.

AirFrame itself is now available as a containerised solution with a built in power and cooling system and Nokia has also added a software-defined storage module. It is supported by a cloud Care Services package, which is comprised of a service management module for resolving VNF faults, as well as a support package specifically for VMWare deployments.

As well as AirFrame Nokia is promoting its OSS Office for Telco Cloud offering, which seems to be more of a strategic consultation service than a physical product. All of this is stitched together by something Nokia is calling Service Chaining, which is a virtualized environment for the delivery of network services.

“Wherever operators are on their cloud transformation journey, Nokia has the solutions and expertise, all the way from strategy to migration to maintenance,” said Deepak Harie, VP of Systems Integration at Nokia Networks. “Our extensive and open cloud portfolio helps operators in making important decisions towards the most efficient processes, services and solutions across all cloud domains. With Nokia Telco Cloud, operators will be able to achieve maximum benefits from telco and IT convergence.”

Essentially Nokia is trying hard to strengthen its credentials as both a cloud player and a full managed service provider for that sector, something its main competitors have already established. You can expand Nokia’s service chain cloud diagram below.

autoscaling, Datacentre, Google Cloud Platform, News & Analysis, Platform as a service

Google’s new autoscaling aims to offer instants gratification

Google cloud platformGoogle is to give users more detailed and tightly controlled management of their virtual machines through a new autoscaling feature.

Announced on Google’s own blog, the Google Compute Engine Autoscaler aims to help managers exert tighter control over all the billable components of their virtual machine infrastructure, such as processing power, memory and storage. The rationale is to give its customers tighter control of the costs of all the ‘instances’ (virtual machines) running on Google’s infrastructure and to ramp up resources more effectively when demand for computing power soars.

The new Google Compute Engine allows users to specify the machine properties of their instances, such as the amounts of CPUs and RAM, on the virtual machines running on its Linux and Windows Servers. Cloud computing systems that are subject to volatile workload variations will no longer be subject to escalating costs and performance ceilings as the platform brings greater scalability, Google promised.

“Our customers have a wide range of compute needs, from temporary batch processing to high-scale web workloads. Google Cloud Platform provides a resilient compute platform for workloads of all sizes enabling our customers with both scale out and scale up capabilities,” said a joint statement from Google Compute Engine Product Managers Jerzy Foryciarz and Scott Van Woudenberg.

Spiky traffic, caused by sudden popularity, flash sales or unexpected mood swings among customers, can overwhelm some managers with millions of requests per second. Autoscaler makes this complex process simpler, according to Google’s engineers.

Autoscaler will dynamically adjust the number of instances in response to load conditions and remove virtual machines from the cloud portfolio when they are a needless expense. Autoscaler will rise from nought to millions of requests per second in minutes without the need to pre-warm, Google said.

In another related announcement, Google is to make 32-core virtual machines (VMs) available. This offering is aimed at customers with industrial scale computing loads and storage-intensive projects, such as graphics rendering. Three variations of 32-core VMs are now on offer. The Standard offering has 32 virtual CPUs and 120 GB of memory. The High Memory option providers 32 virtual CPUs and 208 GB of memory, while the High-CPU offering provides 32 virtual CPUs and 28.8 GB of memory.

“During our beta trials, 32-core VMs have proven very popular with customers running many different workloads, including visual effects rendering, video transcoding, large MySQL and Postgres instances,” said the blog.