Archivo de la categoría: News & Analysis

US revealed to have 46% of all data centres despite EU concerns

Data protectionNew findings from Synergy Research Group show that 46% major cloud and internet data centre sites are located in the US, with second placed China only accounting for 7%.

The research is based on an analysis of the data centre footprint of 17 of the world’s major cloud and internet service firms and highlights the dominance of the US in the cloud market place. Japan is listed at third with a 6% market share and Germany was the largest European player with just 4%.

“Given that explosive growth in cloud usage is a global phenomenon, it is remarkable that the US still accounts for almost half of the world’s major data centres, but that is a reflection of the US dominance of cloud and internet technologies,” said John Dinsdale, Research Director at Synergy Research Group.

Considering the dominance of AWS, Microsoft and Google in the cloud market space, it’s unsurprising that the US is top of the rankings, though recent concerns from European countries regarding movement of its citizens’ data outside of the EU could complicate matters. Germany is one country which is sensitive to any changes in data protection policy and is considered to have some of the most stringent data protection laws worldwide.

“The other leading countries are there due to either their scale or the unique characteristics of their local markets. Perhaps the biggest surprise is that the UK does not feature more prominently, but that situation will change this year with AWS, Microsoft and Google all opening major data centres in the country,” said Dinsdale.

Back in October, the European Court of Justice decided that Safe Harbour did not give data transfers between Europe and the US adequate protection, and declared the agreement which had been in place since 2000 void. The EU-US Privacy Shield, Safe Harbour’s successor, has also come under criticism in recent weeks as concerns have been raised to how much protection the reformed regulations protect European parties.

While the new agreement has been initially accepted, privacy activist Max Schrems, who has been linked to the initial downfall of Safe Harbour, said in a statement reacting to Privacy Shield, “Basically, the US openly confirms that it violates EU fundamental rights in at least six cases. The commission claims that there is no ‘bulk surveillance’ any more, when its own documents say the exact opposite.” A letter from Robert Litt General Counsel of the Office of the Director of National Intelligence, confirmed that there were six circumstances where the NSA will be allowed to use data for undefined “counter-terrorism” purposes

While the concentration of data centres in the US should not come as a huge surprise, it puts into further context the fears of European parties who are concerned with the effectiveness of any EU-US data protection policies.

GoDaddy lauches cloud services tailored for small businesses

Godaddy logo matWeb hosting company GoDaddy has expanded its offering for small business customers to include Cloud Servers and Bitnami-powered Cloud Applications.

GoDaddy, which claims to have more than 61 million domain names under management, will offer its customers a “pay as you go” utility billing model, which will enable customers build, test and scale cloud solutions on GoDaddy’s infrastructure. The company’s traditional playing field is to give customers access to site building software like Word Press, but the new move will provide an environment where they can build and run just about any software they like.

“With the launch of Cloud Servers, GoDaddy aims to extend our lead as the number one trusted provider of Cloud Hosting solutions for individual developers and technologists. We’re looking to make it easy for developers to serve small businesses with the technology they want,” said Jeff King, GM Hosting, Security at GoDaddy. “By offering a powerful, yet simple cloud offering that integrates domains, DNS, security and backups all in one place, developers can save time and exceed their clients’ expectations.”

Unlike its better-known rivals in the cloud space, GoDaddy will build on its traditional business model of targeting individual developers, tech entrepreneurs and small-scale businesses with the new solution. The services will offer a number of features to smaller businesses that cannot afford or justify an all-encompassing service offered by the traditional players in the public cloud market. The company claims virtual instances can be built, tested, cloned and re-provisioned in less than a minute, meeting market expectations.

Alongside the servers, GoDaddy’s Cloud Applications are powered by Bitnami, an open source server application deployments library. “As a GoDaddy technology partner on Cloud Applications, we’re excited for GoDaddy’s international customer base to take advantage of our capabilities – joining the millions of developers and business users who save time and effort with our library’s consistent, secure and optimized end-user experience,” said Erica Brescia, Co-Founder at Bitnami. “We’re proud to partner with GoDaddy in serving this global market of advanced SMB-focused developers.”

The new offering from GoDaddy has seemingly been in the works for some time, as the team announced the acquisition of the public cloud customer division of Apptix for $22.5 million last September.

“With the acquisition of Apptix’s public cloud customer base, we have an opportunity to take customers using Hosted Exchange and bring them over to GoDaddy’s Microsoft Office 365 offering,” said Dan Race, GoDaddy’s VP of Corporate Comms, at the time.

With Microsoft and Google making moves to take market share away from AWS in the corporate space, GoDaddy is targeting the small business market, a niche that appears to be relatively overlooked.

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.

HPE holds off Cisco for cloud infrastructure top spot

HPE street logoFindings from Synergy Research Group have HPE as the number one provider in the cloud infrastructure equipment market, narrowly outperforming Cisco over the course of 2015.

Total revenues for the cloud infrastructure equipment segment reached over $60 billion in 2015, with HPE accounting for just over 12%, and Cisco just under. Dell, Microsoft and IBM complete the top five, each controlling about 7% market share.

“There continues to be particularly impressive growth in the public cloud infrastructure market as AWS and other cloud operators are having tremendous success in attracting enterprises to their ever-expanding range of service offerings,” said Jeremy Duke, Synergy Research Group’s founder. “But enterprises too are buying ever-larger volumes of infrastructure to support their private or hybrid cloud deployments. Across the board there is a massive swing away from enterprises running workloads over more traditional and inflexible IT infrastructure.”

Synergy’s research showed between Q4 2014 and Q3 2015 total spend on infrastructure hardware and software to build cloud services exceeded $60 billion. Spend on private cloud accounted for more than 50% of these revenues, though public cloud is growing at a faster pace. HPE currently leads the private cloud space, with Cisco in second, however the roles are reversed for the public cloud segment.

While HPE and Cisco remain dominant in the server and networking segments, both companies have been releasing a number of new products in recent months to diversify their offering. Last week, HPE launched its ‘machine-learning-as-a-service’ on Microsoft Azure, which combines 60 API’s to provide machine learning capabilities. While HPE is seemingly capitalizing on the growing ‘as-a-service’ trend, Cisco is focused on its cloud-based collaboration service, Cisco Spark, which was launched with Verizon recently.

Market share graphMicrosoft features in the list due to its position in the server OS and virtualization applications market, where as Dell and IBM have demonstrated strong offerings in a broad number of cloud technology markets. Servers, OS, storage, networking and virtualization software combined accounted for 95% of the Q4 cloud infrastructure market.

While hardware and software to build cloud services revenues exceeded $60 billion, other areas of the industry demonstrated stronger growth. Public IaaS/PaaS services had the highest growth rate at 51%, followed by private & hybrid cloud infrastructure services at 45%.

“In many ways 2015 was the year when cloud became mainstream. Across a wide range of cloud applications and services we have seen that usage has now passed well beyond the early adopter phase and barriers to adoption continue to diminish,” said Duke. “Cloud technologies are now generating massive revenues and high growth rates that will continue long into the future, making this an exciting time for IT vendors and service providers that focus on cloud.”

IBM acquires Optevia to strengthen position in public sector CRM market

cloud_IBM claims the acquisition of Optevia will improve its position as a SaaS and digital consultant in the lucrative market. Optevia has a track record of working with UK Emergency Services, Central Government, Local Government and Social Enterprises, including the Ministry of Justice’s National Taxing Team’s rollout of Dynamics CRM.

“By acquiring Optevia, IBM will be able to provide Public Sector clients and prospects with a range of unique, industry focused Microsoft Dynamics CRM based solutions,” said Joanna Davinson, IBM’s European Public Sector Leader. “This strategic acquisition will help strengthen IBM as a SaaS provider and Global Software Integrator.”

In Gartner’s CRM Forecast Overview, published last summer, the global CRM market was valued in the region of $23 billion, with around 50% of the market accounted for by the top 5 services providers. SaaS continued to demonstrate strong demand, with almost 47% of the revenue attributed to the service. According to Gartner,Salesforce.com is the market leader, with IBM claiming 4% of the CRM segment.

While IBM already has an established position in the public sector market, the company has 98 current offerings on G-Cloud, the acquisition of Optevia signals its intentions of increasing its share of the public sector CRM segment.

Alongside IBM, other players have been bolstering their position in the wider CRM market. Last year, Accenture acquired Tquila and Cloud Sherpas, both of which are Salesforce partners on G-Cloud. The acquisitions more than doubled the number of Accenture’s Salesforce consultants in the UK.

“We have seen significant growth in SaaS as more companies adopt the cloud and digital strategies to collaborate better, drive greater operational efficiencies and accelerate the development of new products and services,” said Emma McGuigan, UK and Ireland MD at Accenture Technology. “One key factor for our continued success in delivering Salesforce solutions depends on having the right skilled professionals to meet the growing demand. With Tquila on board we have the critical mass to more proactively target big opportunities both in the UK and Europe, which will extend our position in the region.”

Despite Salesforce.com’s current market-leading position there have been a number of calls-to-arms by competitors looking to challenge the CRM giant. Alongside IBM’s announcement, Oracle has hinted at its intention to take on Salesforce.com. On Oracle’s earnings call this week, CTO Larry Ellison highlighted the company’s positioning “should make it easy for Oracle to pass Salesforce.com and become the largest SaaS and PaaS cloud company in the world.”

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.”

Natural Resources Wales extends cloud ERP relationship with Trustmarque

CloudSystem integrator Trustmarque has announced it will continue it work with Natural Resources Wales, focusing on disaster recovery, and application and infrastructure support.

The agreement, which has now been in place for two years, was initially launched to help Natural Resources Wales simplify its IT estate following the merger of the three different bodies. Natural Resources Wales was brought about through the merger of Countryside Council for Wales, Environment Agency Wales, and the Forestry Commission Wales, all of which operated on different ERP systems.

“The creation of Natural Resources Wales resulted in a complex and disparate IT estate, and over the past two years Trustmarque has helped us effectively simplify it,” said Paul Subacchi, Head of Business Support Services at Natural Resources Wales. “Our ERP system is absolutely critical to the organisation, enabling us to become more efficient and offer greater self-service functionality to our employees.  Cloud is a significant part of our IT strategy, so we need a platform that is available, resilient, flexible and secure to deliver our ERP system.”

Initially projects focused on consolidating all ERP systems it was using for finance and HR onto a single platform, delivered through a combination of cloud, on premise and managed services. Trustmarque will now deliver Natural Resources Wales’ sole ERP system as a private cloud service, as well as creating a self-service portal, MyNRW, for the organizations 2000 employees.

Security was an important consideration for Natural Resources Wales, as Trustmarque has to continually demonstrate that it meets minimum security requirements set forward by G-Cloud. The requirements range from encryption to protect consumer data transiting networks, Trustmarque staff security screening and consumer separation, as well as ensuring that its own supply chain meets the same standards.

“The work we have done with NRW throughout our collaboration is testament to Trustmarque’s end-to-end IT service capabilities and our expertise in delivering cloud services,” said Mike Henson, Cloud and Managed Services Director at Trustmarque. “By selecting the Trustmarque Cloud, Natural Resources Wales is now able to realise the benefits of its Unit 4 ERP system via a secure and robust platform.

“We’ve also removed the potential ‘headache’ that software licensing can cause, allowing Natural Resources Wales to focus on its core business without any compliance concerns. We see our continuing partnership with Natural Resources Wales as an important and valuable digital transformation programme, and look forward to our future work together.”

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.

EY and EMC announce strategic technology partnership

Red Hat and Fujitsu are partnering to develop OpenStack converged infrastructure solutions

EY and EMC have announced a formal strategic partnership over business technology services, building on a long-standing relationship between the two firms.

The partnership will offer a number of different services to clients ranging from enterprise mobility management, hybrid cloud enablement, governance risk & compliance and cyber security.

“Working together as an integrated team, combining advisory services and innovative products, we will be able to connect on both existing and future initiatives to help our clients maximize their technology investments and drive better  business outcomes,” said Mark Weinberger, Chairman and CEO at EY. “The alliance will further expand EY’s digital capabilities and range of services offered to clients.”

Addressing growing trends in the industry, security will form one of the central pillars of the partnership. One of the first offerings from the team is Isolated Recovery, an offering which protects company data from cyber-attacks. The team claim a combination of cyber, business impact analysis and resiliency services, will provide a more secure environment for company data.

The partnership will also include Identity Access Management Monitoring (IAM) for single sign on, which will utilize real-time monitoring technologies. Security monitoring is not something that enterprise organizations traditionally engage in, though it is a growing trend as organizations aim to reduce risk when moving through to a cloud environment.

The alliance builds on EMC’s trend of partnering with major technology players to deliver alternative solutions. Last month, EMC and VMware jointly launched a family of hyper-converged infrastructure appliances (HCIA) for VMware environments.

The VxRail appliance family combines EMC’s data services and systems management with VMware’s software such as vSphere and Virtual SAN.