Cloud Competition: Microsoft Cuts Prices, Adds Platform

Guest Post by Sharon Shapiro of Cloud Sherpas

Although it only entered the cloud computing market in July 2011, Microsoft has already made a name for itself with Office 365, its hybrid cloud solution available to businesses.  But despite its initial climb, Microsoft has yet to catch up to Google when it comes to cloud computing.

Google has worked as a cloud service provider, with its fully-based cloud solution Google Apps, since 2006.  Google offers customers four different cloud computing platforms (business, education, government, and non-profit) and a 99.9% uptime guarantee, including service and updates, that it regularly exceeds.  In contrast, Office 365 is currently available only for businesses and has had issues meeting its promised 99.9% uptime, which does not include service and updates.  Google Apps pricing is also much lower than Office 365 pricing, with the highest priced Google Apps platform (business) operating at $50/user/year and the lowest Office 365 plan operating at $72/user/year.  But a lot of that is about to change as Microsoft has announced news that it hopes will bridge the gap.

First, Microsoft recently announced that it will be cutting the price of Office 365 by up to 20 percent.  Microsoft says this is because it now costs less to run the hybrid cloud platform than it did when Microsoft first introduced Office 365 last July.

Second, Microsoft says it will soon add a new plan – Office 365 for Education – which will widen the customer base.  The release of Office 365 is clearly an attempt to compete with the success of Google Apps’ free education platform.

Although lowering its prices and adding a plan for educational institutions are steps toward competing with Google Apps, Microsoft still has a big gap to close.  Google Apps will still boast more platforms (government and non-profit, in addition to the free version that many people use in their personal lives) and five more years of experience in the cloud.  With this greater experience, comes enhanced cloud service, as Google Apps is a fully cloud-based solution that offers its users complete universal access and proven reliability.  In contrast, it is important to remember that Office 365 is still a hybrid cloud solution that requires on premises servers and that, when it comes to document creating capabilities, works best in conjunction with Microsoft Office installed on a desktop.  Both of these necessities limit the mobile access that Office 365 users can enjoy.   Additionally, Office 365 has already been plagued with a number of outages that have resulted in significant amounts of downtime for users across the world.

These key differences between Office 365 and Google Apps may be part of the reason why the governments of major cities, like Pittsburgh and Los Angeles, trust Google Apps for their communication needs.

While Microsoft’s price cut and addition of an education plan will definitely improve the Office 365 cloud suite, these changes will certainly not put Microsoft and Google on an even playing field, as Google still boasts more authority, reliability, and a wider range of services.


TMCnet Code ▸ tmcdiscount Special Offer as Cloud Expo Partner

As a media partner of Cloud Expo, TMCnet is offering a special 20% discount for each registration package for SYS-CON’s 10th International Cloud Expo, which will take place on June 11-14, 2012, at the Javits Center in New York City. To obtain your 20% discount, here is a quick summary of all you need to do – feel free to cut and paste these instructions into any email blast you might be sending out:
TMCnet is the world’s leading communications and technology Web site. TMCnet is one of the most flexible, useful and fastest growing b-to-b technology sites. Covering IP communications, CRM, contact center and information technology topics, TMCnet is read by two million monthly unique visitors. Source: Webtrends. Please visit www.tmcnet.com

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Cloud Expo New York: Using APIs to Extend Your Business Reach

How can businesses harness the power of APIs to reach new customers and markets?
In his session at the 10th International Cloud Expo, Alistair Farquharson, CTO at SOA Software, will walk the audience through the growth and evolution of the API, why effective API management is important, and how the game changes when companies expose business applications to the outside world. He will also discuss:
A brief history of the API
How to use APIs to make money, save money, build brand
“Appification” and the innovation model of the open API
API management nuts and bolts, and best practices
Why Enterprise APIs are important
Some great examples of companies doing it right

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Cloud Computing: Qualtrics Raises $70 Million

Called “the biggest software company you haven’t heard of yet” by one of its shiny new backers, 10-year-old Qualtrics has gotten $70 million from Accel Partners and Sequoia Capital in the VCs’ largest joint investment ever. It’s also the company’s first outside investment.
Reportedly profitable since it started, it’s supposed to use the money to expand its SaaS products beyond market research and accelerate its global growth, expecting to hire another 250 employees to add to the existing 200 in the next year.
Qualtrics is used for online data collection and analysis claiming to make it “easy for anyone in a company to conduct PhD-level research.” It figures outsourced research and data collection is too expensive – it’s shooting at data generated from customers, sales reps, channel partners and employees – and competitive tools are either too basic or too complicated.

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Compuware Brings Enterprise APM to Cloud and Big Data Applications

Compuware Corporation on Tuesday announced a deep transaction management solution for dynamic cloud and Big Data applications. The Compuware APM Spring 2012 Platform Release introduces new innovations in Compuware dynaTrace Enterprise that simplify performance optimization, operation and management of modern, dynamic applications.
These transformational application environments require a new approach to application performance management (APM) to support massively scalable architectures and dynamic, elastic resource allocation. With dynaTrace Enterprise and its patented PurePath(R) technology, EC2 and Azure cloud applications as well as Cassandra and Hadoop Big Data applications can be easily optimized and managed for greater performance and availability.

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API-Aware Traffic Management

As I mentioned in my last blog post, the promise of cost reduction is compelling many enterprises to move their workloads into the Cloud but many IT leaders are reluctant to do so, for fear of compromising the security and availability of their services. These concerns are well-founded but the benefits of Cloud are too great to ignore. To obtain these benefits, companies must adopt techniques that protect against the attendant risks, without compromise.
Many people are familiar with Layer 7’s industry-leading security functionality, so it’s no surprise that I’d recommend using our Gateway technology to protect connections from on-premise infrastructure to off-premise Cloud services. The flexibility of deployment options we offer makes it possible to create a network of secure on- and off-premise endpoints to meet the most stringent requirements. This covers security but what about availability?

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ScaleMP to Exhibit at Cloud Expo 2012 New York

SYS-CON Events announced today that ScaleMP, a leading provider of virtualization solutions for high-end computing, will exhibit at SYS-CON’s 10th International Cloud Expo, which will take place on June 11–14, 2012, at the Javits Center in New York City, New York.
ScaleMP is the leader in virtualization for high-end computing, providing maximum performance and lower total cost of ownership (TCO). The innovative Versatile SMP (vSMP) architecture aggregates multiple independent systems into a single virtual system, delivering an industry-standard, high-end symmetric multiprocessing (SMP) computer. Using software to replace custom hardware and components, ScaleMP offers a new, revolutionary computing paradigm.

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Plextek, RedCloud Acquire Iceni Mobile Payments System

Plextek Limited, a product innovation and design consultancy and RedCloud Technology Limited, an investor in mobile financial services in emerging markets, today announced that they have entered into a definitive agreement to acquire the Intellectual Property Rights of Iceni Mobile Ltd including the mobile payments system (the I2S platform) developed by the same team that brought the world’s most successful mobile money service, M-PESA, to market.

The acquisition signifies both Plextek’s and RedCloud’s commitment to the mobile money market. With the founding team, the companies plan to deliver the technology as a platform as a service and create a new way in which mobile money and associated services are taken to market.

“Plextek and RedCloud share a vision for extending the mobile payments value chain to transform the way in which financial services are launched in emerging markets,” said Ian Murphy, Technical Director and Founder of Plextek. “The next generation of mobile payments technology is about leveraging the power of secure cloud computing platforms; it’s about a fundamentally better way to recruit, manage and empower banks to deliver mobile financial services.”

“Our cloud financial services investment strategy is accelerating, and is at the root of the broad-based transformation and innovation we are seeing from customers today,” said Justin Floyd, Founding Partner of RedCloud. “The launch of the Platform as a Service model revolutionizes mobile payments through banks and mobile operators in emerging markets. It’s an important step to making technology available at a lower cost of ownership to those that need it most.”

“We are set to transform the way in which mobile money technology is delivered to financial organizations,” added Warren Carew, one of the founders of Iceni. “Traditional mobile payment software that many financial organizations use today was designed to work in an offline world. Platform as a Service will remove barriers to entry for future providers allowing them to accelerate their entry to market.”

Iceni’s core services provide robust authentication solutions for web access and mobile solutions designed for un-banked populations over multiple service channels. The services include proximity and remote payment services such as in-store or online mobile payment, money transfer, and more. The I2S platform enables banks, payment service providers, and telecom operators to offer accessible and secure financial services to anyone with a phone.


Six Degrees Group Announces Two Cloud Hosting Acquisitions

Six Degrees Group today announced that it has completed the acquisitions of two London-based managed hosting and cloud providers. Firstserv and Serverstream were both founded over 10 years ago and focus exclusively on the rapidly growing hosting market with a particular emphasis on the digital media, publishing and leisure sectors. Customers include Sunseeker, The Spectator and Port of London Authority.

Both Firstserv and Serverstream will be integrated into Six Degrees Group’s managed data division where they will add £3m of hosting revenues, representing a mix of managed hosting, cloud hosting (virtual private, private and hybrid) and complex web hosting. 17 highly-skilled personnel will be joining Six Degrees Group where they will focus on integrating and expanding the Group’s hosting platforms. The acquisitions are part of a series of strategic investments being made in the Six Degrees Group’s cloud offering.

Following these transactions, Six Degrees Group’s run-rate revenues now exceed £40m with underlying EBITDA of over £10m. The company continues to enjoy strong double-digit organic growth, underpinned by cross-selling.

Alastair Mills, CEO of Six Degrees Group, stated: “I am delighted to welcome both Firstserv and Serverstream to Six Degrees Group. This announcement sees the Group continue to focus on managed data services, particularly in the fast-growing cloud hosting sector. Our goal for 2012 is to become one of the top five hosting and cloud providers in the UK.”

Gordon Kenneway, MD of Firstserv, said: “This is an important day for all at Firstserv. Our employees will now have access to a larger, geographically diverse hosting platform with best-in-class compute and storage resources, which is also a very exciting step for our customers. I am looking forward to joining Alastair and the Six Degrees team to help establish their position as one of the UK’s fastest growing cloud companies.”

Jonathan Obadia, MD of Serverstream, commented: “We are excited to be joining Six Degrees Group. Serverstream has a strong reputation for delivering complex hosting solutions to mid-market customers and this merger enables us to continue our expansion with additional services, scale and geographical diversity. Our customers will continue to receive the same exceptional levels of service and support that they’ve become accustomed to, with the added benefit of access to


Actuate, Hortonworks Collaborate to Visualize Big Data

Image representing Actuate as depicted in Crun...

Actuate Corporation, the people behind BIRT and an open source Business Intelligence (BI) vendor, today announced a collaboration between Actuate BIRT and the Hortonworks Data Platform, to enable Big Data visualization. The Hortonworks Data Platform is a completely open source, tightly integrated and tested distribution of Apache Hadoop, backed by extensive customer support and training.

The ActuateOne integrated product suite—built around BIRT—uses native access Hive query to leverage MapReduce functions to extract data from Hadoop, pulling those data sets into customizable BIRT-based dashboards and scorecards for interactive visualization and analysis.

“We have dedicated significant resources to make Apache Hadoop more robust and easier to integrate, extend, deploy and use,” said John Kreisa, VP of Marketing at Hortonworks. “Our partnership with open source BI leader Actuate enables more users to cost effectively analyze vast amounts of data stored in Hadoop using open source technologies.”

“Actuate’s collaboration with Hortonworks will ease the transition from Big Data hype to Big Data usefulness,” said Nobby Akiha, Senior Vice President of Marketing at Actuate. “We believe the key to success with Big Data lies in building the right infrastructure to manage it. Teaming with Hortonworks will further our goal of helping organizations figure out how best to leverage and integrate Big Data sources to enable better decision making.”

Large organizations are increasingly turning to Apache Hadoop for the storage and management of massive amounts of data and thus need scalable ways to explore, analyze and visualize the insights stored within it. The combination of the Hortonworks Data Platform’s distributed processing of Hadoop data sources of any size, with Actuate’s scalable infrastructure and intuitive data visualization capabilities, enables organizations to more effectively operationalize Big Data for thousands of customers, partners and employees.