Category Archives: Google

AWS, Google, Microsoft and IBM pull away from pack in race for cloud market share

racing horses starting a raceNew findings from Synergy Research highlight the cloud market is still dominated by AWS, Google, Microsoft and IBM, as the pack is seemingly struggling to gain ground in the race for market share.

AWS still leads the way in the segment, accounting for roughly 31% of the global market share, with IBM, Google and IBM collectively accounting for the next 22%. The next 20 players in the market, companies such as HPE, VMWare and Alibaba for example, account for a collective 27%. AWS year-on-year growth was estimated at 57% while Google and Microsoft both demonstrated more than 100% growth over the same period.

“This is a market that is so big and is growing so rapidly that companies can be growing by 10-30% per year and might feel good about themselves and yet they’d still be losing market share,” said John Dinsdale, Chief Analyst at Synergy Research Group. “The big question for them is whether or not they are building a sustainable and profitable business. This can be done by focusing on specific regions or specific services, but the bulk of the market demands huge scale, a broad footprint, very deep pockets and a long-term corporate focus.”

Worryingly for the rest of the pack outside of the top four, the gap would appear to be growing as AWS, Google, Microsoft and IBM are pulling further ahead. The 20 companies outside the top four averaged year-on-year growth of approximately 41%, though Synergy claim the cloud segment grew more than 50% over the course of Q1.

The team estimate the quarterly cloud infrastructure service revenues, which include IaaS, PaaS and private & hybrid cloud, has now surpassed the $7 billion milestone, with the US accounting for roughly 50% of the worldwide market share.

 

Growth

What did BCN readers say last week?

What do you think written on whiteboardOver the past week, we took the opportunity to gauge the opinion of the BCN readership on industry trends and issues, through a number of polls. Here’s what we found out:

Microsoft is unlikely to be successful? 58% say no

For the most part, Microsoft’s lawsuit has been keep out of the headlines. This is unlikely to indicate the whole episode is unimportant to the industry, but maybe more due to the fact the story has been overshadowed by the ongoing saga between Apple and the FBI.

In any case, Microsoft filed a lawsuit against the US government, citing the first and fourth amendment with regard to government agencies using secrecy orders to access its customer’s emails or records. From Microsoft’s perspective, the company should have the right to tell customers the government is accessing their data, aside from in exceptional circumstances. The government disagrees.

While the tech giant has taken it upon itself to fight the good fight alone, BCN readers are a bit more sceptical on the success of the venture. Only 42% believe Microsoft’s lawsuit will be successful, though this is a question which is unlikely to be answered for a substantial period of time. Any decision will be appealed by the despondent party, dragging out any decisions or changes in government practise.

When will containers hit mainstream? 21% say right now

Containers are one of the hottest trends in 2016. We recently ran a buzzword-buster article not only discussing what containers actually are, but more importantly what the value to enterprise actually is. Since then there have been numerous announcement focused around the technology, from Microsoft to Red Hat to Juniper, indicating containers are starting to get some traction.

But how much of the press is a smoke-screen and how much is reality? In short, it’s looking quite positive.

Cloud took a healthy amount of time to be trusted and understood by the mainstream market, and maybe it is this longer adoption time which has accelerated containers as a technology. 21% of BCN readers highlighted that they are currently using the technology in a meaningful way in their business currently, 50% believe it will be in the next 1-2 years, and only 29% said longer than three years.

Who is the best innovator in the cloud industry? 75% still say AWS

Last week AWS launched a host of new features at the AWS Chicago Summit, ranging from new security features, tools which simplify the movement of data around an organizations cloud, platforms for automatically deploying and running apps on Amazon’s cloud infrastructure, testing features, as well as authentication services.

Although this is the first major update from AWS in some time, Google and Microsoft have been feverishly bolstering their offerings over the last six months ranging from new hires, to new features and new acquisitions. Industry insiders have even told us at BCN that AWS could be seen to be sitting back to much, offering Google and Microsoft the opportunity to improve their own standing, and make up ground on the number one player in the cloud space.

BCN readers do not agree however. 75% believe AWS is still by far and away the industry leader, 10% believe AWS, Google and Microsoft are all on par, while 15% believe innovation has faltered at AWS, and the rest of the industry is catching up fast.

Is DevOps mainstream? 48% say no

DevOps is another of the buzzwords which has floated over from 2015 into 2016. However, as buzzwords go, few have captured the attention of the industry in the same manner. Such is the prominence of DevOps, it seems although every company is now a DevOps specialist, DevOps expert or DevOps orientated organization.

In fact, this isn’t only vendors who have adopted DevOps, but pretty much every enterprise decision maker has DevOps on the lips also. The main concern here is the definition of DevOps can be seen as lost on certain organizations. Yes, there are practitioners of the methodology, though there are also a host of people who have taken the phrase without fully understanding the implications and the means to implement such an idea.

And it would appear BCN readers also agree with that assumption. Despite DevOps being one of the most used words in the cloud industry, only 52% of our readers believe DevOps has hit the mainstream market.

Google backs AI over VR

Googlers having funGoogle CEO Sundar Pichai has backed growth of artificial intelligence over virtual reality as the next era of computing.

Speaking on the company’s earnings call, where Google reported year-on-year revenue growth of 23% to $20.3 billion for Q1, Pichai highlighted investments in machine learning projects and artificial intelligence will continue, though the team is not discounting virtual reality completely.

“And overall, I do think in the long run, I think we will evolve in computing from a mobile first to an AI first world,” said Pichai. “And I do think we are at the forefront of development. So we don’t view it as adapting to it as much as pushing hard and getting there. And so that’s the core of what we do, and we’ll continue to do that.”

While the company has been making progress in the world of AI in recent months, Google launched its Cloud Machine Learning product last month, it has seemingly been playing catch up with the likes of Watson and AWS whose offerings have been in the public eye for a substantially longer period of time. Although it could be seen to be playing catch-up, Pichai believes increased investments and prioritization of AI could be the market differentiator for Google.

“We do think we are competent across a range of work flows,” said Pichai. “And areas where we view we will be uniquely capable over time is, because of our machine learning capabilities, helping enterprises really understand their data, understand how best they can do what their core competency is and really revolutionize around that. It’s early days and it’s a long-term investment. But bringing our machine learning APIs over time through cloud to our enterprise customers is going be a huge source of differentiation for us.”

The company has in recent months been aggressively building its position in the public cloud market, and from what Pichai has said on the earnings call, it would appear this charge will continue. Pichai claims Google has been doing cloud, internally at least, since its inception, though the company has now matured its processes to ensure it is able to serve customers in an effective manner. Pichai also believes the acceptance of AI in enterprise, and the introduction of Diane Greene, positions Google in a bold stance to improve its share of the cloud computing segment.

“Last December, we have unified our cloud businesses under one leader (Diane Greene), so we can innovate faster and better serve our customers,” said Pichai. “This decision is already paying off. Enterprises are starting to see the power of combining Google Cloud Platform with our suite of business applications, all of which are infused with our machine learning services.”

Google cloud team launches damage control mission

Close up of an astronaut in outer space, planet Mars in the background. Elements of the image are furnished by NASAGoogle will offer all customers who were affected by the Google Compute Engine outage with service credits, in what would appear to be a damage control exercise as the company looks to gain ground on AWS and Microsoft Azure in the public cloud market segment.

On Monday, 11 April, Google Compute Engine instances in all regions lost external connectivity for a total of 18 minutes. The outage has been blamed on two separate bugs, which separately would not have caused any major problems, though the combined result was a service outage. Although the outage has seemingly caused embarrassment for the company, it did not impact other more visible, consumer services such as Google Maps or Gmail.

“We recognize the severity of this outage, and we apologize to all of our customers for allowing it to occur,” said Benjamin Treynor Sloss, VP of Engineering at Google, in a statement on the company’s blog. “As of this writing, the root cause of the outage is fully understood and GCE is not at risk of a recurrence. Additionally, our engineering teams will be working over the next several weeks on a broad array of prevention, detection and mitigation systems intended to add additional defence in depth to our existing production safeguards.

“We take all outages seriously, but we are particularly concerned with outages which affect multiple zones simultaneously because it is difficult for our customers to mitigate the effect of such outages. It is our hope that, by being transparent and providing considerable detail, we both help you to build more reliable services and we demonstrate our ongoing commitment to offering you a reliable Google Cloud platform.”

While the outage would not appear to have caused any major damage for the company, competitors in the space may secretly be pleased with the level of publicity the incident has received. Google has been ramping up efforts in recent months to bolster its cloud computing capabilities to tackle the public cloud market segment with hires of industry hard-hitters, for instance Diane Greene, rumoured acquisitions, as well as announcing plans to open 12 new data centres by the end of 2017.

The company currently sits in third place in the public cloud market segment, behind AWS and Microsoft Azure, though has been demonstrating healthy growth in recent months prior to the outage.

Google plays catch-up with Cloud Machine Learning

AI-Artificial-Intelligence-Machine-Learning-Cognitive-ComputingGoogle has entered into the machine learning market with the alpha release of Cloud Machine Learning.

Built on top of the company’s open source machine learning system TensorFlow, the offering will allow customers to build custom algorithms the make predictions for their business, aiding decision making.

“At Google, researchers collaborate closely with product teams, applying the latest advances in machine learning to existing products and services – such as speech recognition in the Google app, search in Google Photos and the Smart Reply feature in Inbox by Gmail,” said Slaven Bilac, Software Engineer at Google Research. “At GCP NEXT 2016, we announced the alpha release of Cloud Machine Learning, a framework for building and training custom models to be used in intelligent applications.”

The system is already used in a number of Google’s current offerings, though it is later to market than its competitors. AWS launched its machine learning in April last year, while IBM’s Watson has been making noise in the industry for years.

Although later to market, Google has highlighted that it will allow customers to export their TensorFlow models to use in other settings, including their own on premise data centres. Other offerings operate in vendor lock-in situation, meaning their customers have to operate the machine-learning models they’ve built in the cloud through an API. Industry insiders have told BCN that avoiding vendor lock-in situations would be seen as a priority within their organization, which could provide Google with an edge in the machine-learning market segment.

Cloud Machine Learning’s launch builds on the growing trend towards advanced data analytics and the use of data to refine automated decision making capabilities. A recent survey from Cloud World Forum showed that 85% of respondents believe data analytics is the biggest game changer for marketing campaigns in the last five years, while 82% said that data would define the way in which they interact with customers.

The company is still behind Microsoft and AWS in the public cloud space, though recent moves are showing Google’s intent to close the gap. At GCP NEXT 2016, Google’s cloud chief Diane Greene told the audience that machine learning and security will form the back bone of her new sales strategy. “If your customer is embracing machine learning, it’d be prudent for you to embrace it too,” said Greene.

Googles continues public cloud charge with 12 new data centres

GoogleGoogle has continued its expansion plans in the public cloud sector after announcing it will open 12 new data centres by the end of 2017.

In recent weeks, Google has been expanding its footprint in the cloud space with rumoured acquisitions, hires of industry big-hitters and blue-chip client wins, however its new announcement adds weight to the moves. With two new data centres to open in Oregon and Tokyo by the end of 2016, and a further ten by the end of 2017, Google is positioning itself to challenge Microsoft and AWS for market share in the public cloud segment.

“We’re opening these new regions to help Cloud Platform customers deploy services and applications nearer to their own customers, for lower latency and greater responsiveness,” said Varun Sakalkar, Product Manager at Google. “With these new regions, even more applications become candidates to run on Cloud Platform, and get the benefits of Google-level scale and industry leading price/performance.”

Google currently operates in four cloud regions and the new data centres will give the company a presence in 15. AWS and Microsoft have built a market-share lead over Google thanks in part to the fact that they operate in 12 and 22 regions respectively, with Microsoft planning to open a further five.

Recent findings from Synergy Research Group show AWS is still the clear leader in the cloud space at market share of 31%, with Microsoft accounting for 9% and Google controlling 4%. Owing to its private and hybrid cloud offerings, IBM accounts for 7% of the global market according to Synergy.

Growth at AWS was measured at 63%, whereas Microsoft and Google report 124% and 108% respectively. Industry insiders have told BCN that Microsoft and Google have been making moves to improve their offering, with talent and company acquisitions. Greater proactivity in the market from the two challengers could explain the difference in growth figures over the last quarter.

Alongside the new data centres, Google’s cloud business leader Diane Greene has announced a change to the way the company operates its sales and marketing divisions. According to Bloomberg Business, Greene told employees that Google will be going on a substantial recruitment drive, while also changing the way it sells its services, focusing more on customer interaction and feedback. This practice would not be seen as unusual for its competitors, however Google’s model has been so far built on the idea of customer self-service. The cloud sales team on the west coast has already doubled in size to fifty, with the team planning on widening this recruitment drive.

While Google’s intentions have been made clear over recent months, there are still some who remain unconvinced. 451 Group Lead Analyst Carl Brooks believes the company is still not at the same level as its competitors, needing to add more enterprise compatibility, compliance, and security features. “They are probably the most advanced cloud operation on the planet. It also doesn’t matter,” he said.

Google said to be on cloud shopping spree

Googlers having funGoogle is rumoured to be planning the acquisition of a number of businesses to bolster its cloud computing platform and suite of workplace applications.

According to Re/code, the tech giant has amassed a short-list of various start-ups and niche service providers including automated app services start-up Metavine, e-commerce public company Shopify, and payroll and health benefits services business Namely. Re/code sources have stressed that the approaches are preliminary, and none of the companies involved have commented on the rumours.

The moves seem to address two challenges currently facing the Google team. Firstly, there is a notable gap of ‘middle range’ customers for Google Apps. The company traditionally does well with small and large companies, but has struggled with the lucrative market in between. Last year, Google attempted to lure the middle market onto Google Apps for Work by offering the service for free while seeing out their current enterprise agreement, and then $25 per user after that point.

Secondly, the acquisitions would enable Google to move its internal systems to its cloud platform, potentially creating a more solid offering to challenge AWS and Microsoft Azure.

The reports back-up recent moves in the market which indicated Google’s intentions of increasing its stake in the cloud market. While AWS and Microsoft have been firmly planted as the number one and number two players in the public and private cloud space, Google is closing the gap, making a number of company and talent acquisitions to improve its proposition.

Aside from the recent hire of VMware founder Diane Greene to lead its cloud business, last year SVP of Technical Infrastructure Urs Hölzle highlighted that Google cloud platform revenues could surpass Google’s advertising revenue within five years.

“The goal is for us to talk about Google as a cloud company by 2020,” said Hölzle in October. “Our cloud growth rate is probably industry-leading…and we have lots of enterprise customers, happy enterprise customers.”

The rumours shouldn’t come as a surprise, as Hölzle also said that there would be a number of announcements which would “remove any doubt” from Google’s future plans.

While the approaches are rumours, GCP Next 2016, the company’s cloud developer user conference taking place this week, may provide some clarity to Google’s aspirations.

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.

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.

Spotify shifts all music from data centres to Google Cloud

Spotify_Icon_RGB_GreenMusic streaming service Spotify has announced that it is to switch formats for storing tunes for customers and is copying all the music from its data centres onto the Google’s Cloud Platform.

In a blog written by Spotify’s VP of Engineering & Infrastructure, Nicholas Harteau explained that though the company’s data centres had served it well, the cloud is now sufficiently mature to surpass the level of quality, performance and cost Spotify got from owning its infrastructure. Spotify will now get its platform infrastructure from Google Cloud Platform ‘everywhere’, Harteau revealed.

“This is a big deal,” he said. Though Spotify has taken a traditional approach to delivering its music streams, it no longer feels it needs to buy or lease data-centre space, server hardware and networking gear to guarantee being as close to its customers as possible, according to Harteau.

“Like good engineers, we asked ourselves: do we really need to do all this stuff? For a long time the answer was yes. Recently that balance has shifted,” he said.

Operating data centres was a painful necessity for Spotify since it began in 2008 because it was the only way to guarantee the quality, performance and cost for its cloud. However, these days the storage, computing and network services available from cloud providers are as high quality, high performance and low cost as anything Spotify could create from the traditional ownership model, said Harteau.

Harteau explained why Spotify preferred Google’s cloud service to that of runaway market leader Amazon Web Services (AWS). The decision was shaped by Spotify’s experience with Google’s data platform and tools. “Good infrastructure isn’t just about keeping things up and running, it’s about making all of our teams more efficient and more effective, and Google’s data stack does that for us in spades,” he continued.

Harteau cited the Dataproc’s batch processing, event delivery with Pub/Sub and the ‘nearly magical’ capacity of BigQuery as the three most persuasive features of Google’s cloud service offering.