Category Archives: IaaS

applications, AWS, Cloud computing, Data Centres, Google Cloud, Healthcare, IaaS, Infrastructure as a Service, Microsoft, Microsoft Azure, Nvidia, Platforms

NVIDIA GTC roundup: Next-gen data centres and cloud provider partnerships

NVIDIA’s 2024 GTC event, taking place through March 21, saw the usual plethora of announcements one would expect from a major tech conference. One stood out, from founder and CEO Jensen Huang’s keynote: the next-generation Blackwell GPU architecture, enabling organisations to build and run real-time generative AI on trillion-parameter large language models. “The future is… Read more »

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Alibaba Cloud, China, IaaS, Infrastructure as a Service, Research

China cloud infrastructure spend hits $9.2bn in Q3 with ‘relentless’ AI focus

Spending on cloud infrastructure services in mainland China hit $9.2 billion USD (£7.29bn) in the third quarter of 2023 accounting for 12% of global cloud spend, according to analyst firm Canalys. The three largest vendors in China – Alibaba, Huawei and Tencent – represent almost three quarters (73%) of the market and customer spending. Alibaba… Read more »

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Cloud computing, IaaS, IDC, Infrastructure as a Service, PaaS, Platform as a service, Public Cloud, Research, Software as a service

Global public cloud services revenues hit $315bn in first half of 2023

Global public cloud services revenues have been ticking over to the tune of 19.2% in the first half of 2023 with software as a service (SaaS) representing the lion’s share but platform as a service (PaaS) the biggest growth, according to IDC. The analyst firm released figures from its Worldwide Semiannual Public Cloud Services Tracker,… Read more »

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AWS, Google, IaaS, Microsoft Azure, News & Analysis, Public Cloud

Google backs multi-cloud strategy with Orbitera purchase

Googlers having funGoogle has confirmed the acquisition of cloud commerce platform Orbitera, marking an alternative strategy to its main cloud rivals AWS and Microsoft, reports Telecoms.com.

The Orbitera platform acts as a marketplace for cloud solutions which simplifies the way in which customers search and purchase products. The platform currently supports deploying applications on Amazon Web Services and Microsoft Azure, but not currently Google Cloud Platform, though the company said it would continue to support software deployments on platforms other than its own.

As the practise of cloud computing has become normalized throughout the industry, multi-cloud strategies have become more common as enterprise organizations aim to spread workloads to reduce risk. It would appear Google are using the move to multi-cloud environments to further establish its platform and build credibility in the industry. Although Google is generally ranked in the top three cloud providers worldwide, the gap between Microsoft and AWS, and Google in third place has been widening slightly in recent quarters.

Microsoft and AWS do also support multi-cloud propositions, though the majority of the marketing messages are focused on standardizing on a single platform. It would seem Google are moving to a position which would be more aligned with customer trends in the cloud ecosystem.

“At Google, we partner closely with our enterprise customers and software providers to ensure their transition to the cloud is as simple and seamless as possible,” said Nan Boden, Head of Global Technology Partners, on the company’s blog. “We recognize that both enterprise customers and ISVs want to be able to use more than one cloud provider and have a way to conduct product trials and proofs of concept before building a full production deployment, all using their trusted SIs (System Integrators), resellers and normal sales cycles.”

The deal ties in well with another acquisition which the internet giant made in recent months. Back in November the company acquired enterprise development platform start-up bebop, which some industry commentators believed was a move to lure former VMware CEO Diane Greene to head a new business-oriented cloud service. The bebop business created a set of tools which simplified the process for enterprise organizations to build cloud apps. Combining Orbitera with Bebop could potentially form the central theme of a new marketing message for Google; simplifying the cloud.

Google are still playing catch-up with cloud rivals AWS and Microsoft, though it does have lofty ambitions. Last year, Urs Hölzle, SVP for Technical Infrastructure, stated he believes the cloud business has the potential to exceed advertising revenues for the internet giant, which stood at $19 billion for the last quarter. Although the company has been growing in the cloud space, its competitors are expanding at a faster pace. Taking Microsoft and AWS on at their own game does not appear to be working, though a new strategy have the potential to act as a differentiator, as it does match customer trends moving towards multi-cloud strategies.

AWS, Financial Results, IaaS, News & Analysis

AWS posts 60% boost as it creeps towards $10bn revenues

amazon awsAWS has continued its promising progress towards breaking the $10 billion barrier, after reporting revenues of $5.4 billion for the first six months of 2016, a boost of 60% from the same period last year, reports Telecoms.com.

Speaking during its Q1 earnings call in April, Amazon CFO Brian Olsavsky highlighted there was a very realistic chance the AWS business would exceed $10 billion in annual revenues, becoming the first cloud infrastructure company to do so. After another quarter of healthy growth, revenues were up 58% to roughly $2.9 billion, the team are well on track to exceed the ambitious target. Progress has been healthy over the last few quarters, but the team are looking to push the accelerator harder.

“We actually see nine availability zones in four regions coming out in the next – in the coming year,” said Olsavsky. “The impact on short-term is pretty much indistinguishable from the growth that we’re seeing in our expansion of our base customers in our existing regions, so we don’t see a large step-up from the addition of new regions relative to the large and rapid growth in the business itself.”

With new data centres popping up all over the world to meet the demand of the burgeoning cloud computing sector, AWS is keeping trend, opening up in Mumbai last month, as planning nine new availability zones within the next 12 months. The impact of these new assets are unlikely to be felt during the next quarter, though long-term there the current cloud leader could reinforce its position at the top of the leader board.

“Again, we like our position, our industry leading position in the cloud space, and we’re working on things that would incent more and more customers to accelerate their cloud conversion,” said Olsavsky. “The lower prices and services that we offer, and as I said, we’ll work on things that will make it easier and easier for customers to work with us with their hybrid data centers or transfer their volume to us.”

One area of growth which could have a more short-term impact is the new FedRAMP High compliance certification, which will allow government agencies the ability to use the AWS Cloud for highly sensitive applications and workloads like patient records, financial data, and law enforcement data. Government contracts represent lucrative wins in the technology sector, which could underpin the company’s surge towards $10 billion. The accreditation also creates a useful precedent for the business if/and the team look to expand its footprint with government organizations in the international markets.

hybrid cloud, IaaS, News & Analysis, NTT, Private Cloud

NTT makes play for IaaS

NTT CommunicationsNTT Communications has announced the deployment of managed private cloud solutions to HPE and NTT customers in the US in a play for the IaaS market.

Although not hitting the headlines as regularly as competitors such as AWS, Google and Microsoft, NTT has been recognized in the IaaS market by Gartner, and does already have a strong presence in the US market. Although noted as a niche player the IaaS segment, NTT does offer two platforms to global customers; NTT Enterprise Cloud and Cloudn. Gartner has noted the NTT does little to differentiate itself from the rest of the market, though it does have a healthy ecosystem of partners to compensate.

The new proposition will enable joint customers of HPE and NTT to purchase the company’s IaaS portfolio solutions, including cloud migration services, data centre consolidation, managed infrastructure services, and disaster recovery-as-a-service. The NTT team claim it is one of HPE’s first service provider partners capable of providing managed private cloud environments using the new HPE Helion CloudSystem.

“NTT America, the U.S. subsidiary of NTT Com, provides flexible, agile and cost-effective private hybrid cloud solutions to the NTT Com and HPE customer base,” said Indranil Sengupta, Regional Vice President of Product Management at NTT America. “These solutions can be delivered at NTT Com data centres, customer premises or at third party data centres.

“The solution architecture allows customers to leverage their current investments and augment with additional services that they need to run their business efficiently. All of NTT Com’s cloud solutions focus on the five key considerations of security, compliance, migration, legacy integration and change management.”

While a niche player in the market, the move could represent a strategic win for the NTT team, who already has a healthy reputation in North America, and a growing customer base. It would also be considered a timely move as trends in the industry are leaning more towards multi-cloud propositions, where decision makers are more open to working with different cloud providers for different workloads and data sets.

Financial Results, IaaS, News & Analysis, Oracle, PaaS, Quarterly Earnings, Saas

Oracle sets sights on IaaS market as it reports 49% cloud growth

Oracle CloudOracle has reported its 2016 Q4 results stating growth over the period declined 1% to $10.6 billion, though its cloud business grew 49% to $859 million, reports Telecoms.com.

2016 has seen Oracle spend almost $2 billion on cloud-specific organizations, as the tech giant continues efforts to transform the Oracle business focus to the burgeoning cloud market. While Oracle could be seen as one of the industry’s elder statesmen, efforts in the M&A market are seemingly paying off as PaaS and SaaS continues to demonstrate healthy growth to compensate for the dwindling legacy business units. The team have also outlined plans to make strides in the IaaS market segment.

Growth in the SaaS and PaaS business has been accelerating in recent years as CEO Safra Catz quoted 20% growth in 2014, 34% in 2015, and now 52% over the course of FY 2016. Q4 gross margin for SaaS and PaaS was 57%, up from 40% during the same period. The progress of the business would appear to be making healthy progress, and Catz does not seem to be content with the current growth levels. The team have ambitions to raise gross margin to 80% in the mid-term, as well as seeing cloud year-on-year revenue growth for Q1 FY 2017 of 75% to 80%.

“For most companies as their business grows, the growth rates go down,” said Catz. “In our case, as the business grows, the growth rates are continuing to increase. Now, as regard to our cloud revenue accounting, we have reviewed it carefully and are completely confident that it is a 100% accurate and if anything slightly conservative.”

Moving forward, CTO Larry Ellison highlighted the team plan on driving rapid expansion of the cloud business. The Oracle team are targeting growth rates which would double that of competitors as its ambition is now to be the first SaaS company to make $10 billion in annual revenue. The team are not only targeting the customer experience markets, but also the Enterprise Resource Management and Human Capital Management segments, where it believes there will be higher growth rates.

“We’re a major player in ERP and HCM,” said Ellison. “We’re almost the only player in supply chain and manufacturing. We’re the number one player in marketing. We’re very competitive. We’re number one – tied for number one in service.”

Secondly, the team will also be aiming to facilitate growth through expanding it IaaS data centre focus, which is currently an ‘also ran’ part of the cloud business. Ellison claims Oracle is in a strong position to grow in this area, having invested heavily second generation data centres, as well the potential for the combination of PaaS and IaaS for the company’s installed base of database customers, helping them move to the cloud.

“And we built, again, the second generation data centre, which we think is highly competitive with anything out there lower cost, better performance, better security, better reliability than any of our competitors, and there’s huge demand for it, and we’re now starting to bring customers into that,” said Ellison. “We think that’s another very important driver to Oracle for overall growth.”

The last few years have seen a considerable transformation in the Oracle business, as it has invested considerably in the development of new technology, as well as acquisitions, seemingly hedging its bets to buy its way into the cloud market. The numbers quoted by Catz and Ellison indicate there has been some traction and the market does seem to be reacting positively to the new Oracle proposition.

In terms of the IaaS market, success in this area will remain to be seen. Although Oracle has the potential to put considerable weight behind any move in this market, it is going to be playing catch up with some noteworthy players, who have cash themselves. Whether Oracle has the ability to catch the likes of AWS, Microsoft Azure and Google, as well as the smaller players in the market, remains to be see, though its success in the SaaS and PaaS markets does show some promise.

Enterprise IT, IaaS, Infrastructure as a Service, Microsoft Azure, News & Analysis, Public Cloud, Shadow IT

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.

IaaS, News & Analysis, Oracle, Platform as a service, UK

Oracle launches a mission critical PaaS from its Slough data centre

OracleOracle has added new Platform-as-a-Service (PaaS) and Infrastructure-as-a-Service (IaaS) cloud offerings from its Slough data centre, which currently caters for 500 UK and global customers.

Clients from both the private and public sector are being promised tailored versions of the new services, which include Oracle’s Database, Dedicated Compute, Big Data and Exadata cloud services.

Oracles claims that it is offering enterprises a mission critical PaaS and outlined four main selling points for the new services. Clients will now be able to develop, test and launch applications much more rapidly and cheaply, it claims. No supporting figures were given to exemplify this, however. Secondly, the new service will give companies greater flexibility without compromising their security, Oracle claims.

It will also use Hadoop’s open-source software framework for storing data and running applications on clusters of commodity hardware. This, says Oracle, will provide massive storage for any kind of data, boost the available pool of processing power and allow the data centre to handle a far greater volume of concurrent jobs. Oracle claimed that this can be delivered as a secure, automated service that meshes with existing enterprise data in Oracle Database. The fourth plank of its new offering is instant access to a virtual computing environment to run large scale applications on the Oracle Cloud.

Oracle currently has 19 data centres running its Oracle Cloud from various points of the globe. Last week it announced the intention to open a new Cloud data centre in Abu Dhabi. Oracle will be investing in two new cloud sales centres in Amsterdam and Cairo along with new offices opening this year in Dubai, Dublin and Prague.

In December 2015, BCN reported that Oracle’s co-chief executive Safra Catz warned fiscal 2016 will be “a trough year for profitability as we move to the cloud.”

In January 2016, however, BCN reported that Oracle had announced aggressive expansion plans with a recruitment drive for junior and senior sales staff to be based in six cities across EMEA.

The cloud software giant is now actively headhunting for 1,400 new cloud sales staff to work out of sales HQs in Amsterdam, Cairo, Dubai, Dublin, Malaga and Prague.

IaaS, News & Analysis, PaaS, Research, Synergy Research

Cloud market growing 28% a year and worth $110 billion says study

Money cloudCloud services boomed in 2015 as the barriers to adoption toppled and confidence surged, says a new study. Operators and vendors in the six major cloud services and infrastructure market groups earned $110 billion in the four quarters ending in September 2015, according to new data from Synergy Research Group. This represents an annual growth rate of 28% on average.

The fastest growing sectors, Public Infrastructure as a Service (IaaS) and Platforms as a service (PaaS) grew at almost double the average rate, however, with a 51% increase in revenues in the 12 month period. Perhaps surprisingly, the public cloud is still growing at a faster rate than the hybrid cloud, which many pundits have tipped to be the immediate future for enterprise computing as companies hedge their bets between on and off-premise computing models.

The private and hybrid cloud infrastructure service markets grew by 45%. However, spending on infrastructure hardware and software is still higher than spending on cloud services, but the gap is narrowing rapidly. The top six companies in the hybrid cloud sector were identified as Cisco, HP Enterprise (HPE), AWS, Microsoft, IBM and Salesforce.

Even the lowest performing cloud sectors grew by 16%, Synergy reported.

The latest yearly figures, measured in the period from Q4 2014 to Q3 2015, showed that the total spend on infrastructure hardware and software to build cloud services exceeded $60 billion. Of that $60 billion, at least $30 billion was apportioned to private cloud projects. However, spending on public cloud projects, while in the minority, is growing much more rapidly.

The investments in infrastructure by the cloud service providers brought a return, the analyst says, as the figures show it helped them to generate $20 billion in revenues from cloud infrastructure services (IaaS, PaaS, private & hybrid services) and a further $27 billion from SaaS. There was also a return from additional income sources arising out of supporting internet services such as search, social networking, email and e-commerce. A new sector is emerging, as unified communications as a service (UCaaS) began to show healthy growth and, according to Synergy, is showing signs of driving some radical changes in business communications.

Last year the cloud became mainstream and moved beyond the early adopter phase as barriers to adoption fell, according to Synergy Research Group’s Chief Analyst Jeremy Duke. “Cloud technologies are now generating massive revenues and high growth rates that will continue long into the future,” said Synergy Research Group Chief Analyst John Dinsdale.