Tag Archives: cloud

Broadband, News & Analysis, Ofcom, Streaming, Telecos, Video

Media and comms growth fueled by telcos

August 8, 2016 Jamie Davies

Telcos have accounted for roughly 50% of growth in the media and communications industry, which stood at a £0.4 billion increase to £56 billion, a rise of 0.9%, reports Telecoms.com.

According to Ofcom’s Communications Market Report 2016, the telco industry grew by £200 million over the course of 2015, which has been attributed to the growth of 4G and bundled packages, amongst other factors. 4G coverage is now available to 97.8% of the UK and 80% of households now have access to superfast broadband. Uptake now stands at 48% of adults and 37% of fixed broadband connections are providing actual speeds of 30Mbit/s. 4G coverage is now almost on par with 2G and 3G services.

Telcos were also bolstered by an increase in bundled services, which saw an increase when comparing Q1 2016 to 2015. The bundled services are generally viewed as the industry’s fight against the trend of being relegated to the likes of a utility. 68% of households reported buying at least two of their communications services together in a bundle in 2016, which demonstrated an increase from 63% in 2015. Dual-play packages of landline and broadband, and triple-play packages of landline, broadband and TV, were the most popular.

The report also highlighted the continual shift in the way the UK consumes popular media, as on-demand services become more popular and more adults shift towards OTT services such as WhatsApp. Live TV could be seen as one of the casualties of the report as viewing fell by 5.5 minutes year on year, while recorded and catch-up viewing within a week of broadcast increased by 1.3 minutes. The number of adults who used Video-on-Demand (VoD) services increased over the course of 2015, and while this growth is slowing in some demographics, paid-for services are increasing becoming more popular.

A more worrying sign for the live broadcasting segment could be seen in the breakdown of the age demographics. Although those in the 65+ bracket are continuing to watch live TV, 83% watch live TV over VoD, in the ‘Adult’ age bracket, this number decreases to 63%. The 16-24 age bracket, which could be seen as the future target market for numerous live TV broadcasters claim they spend 37% of their time watching live TV against VoD. Overall, the number of people who view live TV over the course of the week has declined by three percentage points.

These statistics imply there is a shift in the way the younger generations in the UK consume popular media, posing the challenge to traditional broadcasters, who to date may not have considered VoD services such as Netflix as a direct competitor. This is also backed up by the increase in average data usage from households (fixed-line), which grew by 41% over the 12 month period. While a concern to the live broadcasters, this could be seen as a lifeline for the telco industry which is becoming increasingly reliant on bundled services to counter the challenge of the OTT’s.

When looking at the OTT’s, there once again has been an increase in popularity. The number of people who are using the instant messaging services such as WhatsApp is up from 28% to 43%, and photo/ video messaging (MMS) has risen to more than a fifth of adults in a given week. These services have been at the expense of SMS and email, which has seen a decline year-on-year of eight and seven percentage points respectively.

The shift implies a shift in the means in which consumers interact with the media and communications industry. While the utility concern has been on at the forefront of the industry for some time, the increasing popularity of bundled services and VoD services, could offer compensation. That said, the OTT’s are becoming more prominent not only in the younger generations but also the older, demographics which could be seen as somewhat of a cash-cow for the telcos. The 16-24 year old demographic are more likely to embrace the new offerings, though the trend can be seen to be penetrating the ‘Adult’ demographics also.

With this in mind, Philip Marnick, Ofcom’s Group Director of Spectrum, believes the trends will impact the allocation of spectrum.

“One of Ofcom’s key jobs is to manage the UK’s spectrum to enable existing services to grow and new services to develop and come to the market,” said Marnick in the report. “We often hear about the demands for more spectrum to support the increasing demand for mobile data, which is expected to increase by as much as 31 times by 2020 in Western Europe.

“As most spectrum is occupied, we have to consider moving one service to make way for another; for example, squeezing up TV to make more spectrum (700MHz) available for mobile. As part of this, and given the high levels of use of wireless microphones, we are now enabling these to share with aeronautical services.

“We are already looking at the spectrum needs of 5G, which will provide higher capacity networks that are more responsive and can offer faster speeds. This will open up a new range of frequencies in the millimetric bands – an area of spectrum in which satellites provide TV, radio navigation services, support for emergency services, and broadband for very remote locations, on land, in the air and at sea.”

The role of Ofcom is to ensure all services work effectively without interference, though the picture is becoming increasingly complicated with the faster introduction of new services. Alongside the greater reliance on mobile technologies and data, autonomous cars and the connected home may require exclusive spectrum, adding to the “three dimensional jigsaw”.

AWS, Financial Results, IaaS, News & Analysis

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

July 29, 2016 Jamie Davies

AWS 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.

AI, fibre, Financial Results, Google, News & Analysis

Google grows (again) but ‘Other Bets’ cost the giant $1bn

July 29, 2016 Jamie Davies

Google has reported its Q2 numbers, continuing a strong run of performances within the technology industry, though efforts to diversify its overall business are not paying off just yet, reports Telecoms.com.

The Alphabet brand was announced last year, with aim of allowing the team to invest in other projects more freely, without being impeded by the advertising business. It would appear the management team are not afraid to throw R&D money at its innovation team as it searches for another billion-dollar business, as the ‘Other Bets’ segment, which includes Google Fibre and the autonomous cars projects, accounted for an operating loss of $859 million. Revenues did grow to $185 million, up 150% on the same quarter in 2015, though this number was made almost insignificant by the $19 billion generated in the advertising business.

The technology industry on the whole has been providing strong numbers over the last couple of weeks, though there has been a question as to whether two advertising giants can co-exist. With Facebook reporting significant growth yesterday, advertising revenues across the period increased 63% year-on-year to $6.2 billion, these numbers were dwarfed by Google, perhaps demonstrating there is potential for both organizations to share advertising revenues, which are decreasing in value, and grow healthily.

With regard to the dwindling value of advertising revenues, Google would appear to be combatting this with volume. CFO Ruth Porat highlighted the mobile search capabilities were the primary driver behind the year-on-year growth, though the desktop and tablet search did also grow.

Numbers such as these will grab headlines, meaning it can be easy to forget about the Google cloud business, one of the top priorities for the Alphabet business moving forward.

On the same day which AWS reported revenues of $2.9 billion for the quarter, Google’s cloud business also demonstrated solid growth. Although the numbers are not specific, the ‘Other’ revenues segment which includes the cloud business, and other services such as Google play, accounting for $2.1 billion through the three month period, an increase of 33% on Q2 2015.

“Many tremendous digital experiences are being built in the cloud today, and businesses are working to take advantage of the cloud as part of their digital transformation,” said Google CEO Sundar Pichai. “We’ve been integrating our cloud and apps products to create more unified solutions for companies large and small, and these efforts are paying off.”

Following on from Pichai’s previous comments on the role of artificial intelligence on the Google cloud platform, and the wider Google business, its importance has been reiterated once again. Machine learning is being prioritized as the differentiator for Google in a competitive technology market, and only last week the team introduced two cloud machine learning APIs for speech and natural language to help enterprise customers convert audio to text and easily understand the structure and sentiment of the text in a variety of languages.

In terms of footprint, the team are not done growing yet. At the end of last month, Google and friends completed work on a new trans-Pacific submarine cable system, which will help the team launch a new Google Cloud Platform East Asia region in Tokyo. Back in March, the team confirmed it would be investing heavily in expansion of its cloud footprint with 12 new data centres around the world by the end of 2017.

AWS has previously stated it intends to break the $10 billion barrier in cloud revenues during 2016, though Google may not be that far behind. With its history of not being afraid to invest, and the growth numbers which have been witnessed over the last few quarters, Google could be set to accelerate.

5G, Financial Results, Huawei, IoT, News & Analysis, Smartphone

Smartphones help Huawei to 40% revenue growth over H1

July 25, 2016 Jamie Davies

Huawei has released financials for the first half of 2016 demonstrating a 40% revenue boost to $37 billion, partly owing to a healthy performance in the consumer business unit.

Although operating margin for the period has declined from 18% to 12%, the company posted stronger revenue growth for the period, slightly offsetting the decline. During the first six months of 2015 revenues grew 30%.

“We achieved steady growth across all three of our business groups, thanks to a well-balanced global presence and an unwavering focus on our pipe strategy,” said Sabrina Meng, Huawei’s CFO. “We are confident that Huawei will maintain its current momentum, and round out the full year in a positive financial position backed by sound ongoing operations.”

The decrease in the operating margin reflects the progress of the larger smartphone industry, as well as the competition which is increasing worldwide. Huawei currently sits in third place in global market share of the smartphone market, though it has been investing heavily to penetrate western markets in recent months. Samsung and Apple are currently defending their position as the top two, though Huawei’s efforts to chance the mid-range market are seemingly paying off.

Set against a backdrop of declining smartphone shipments, Huawei has held onto its strong position in the Chinese market, increasing its shipments from 11.2 million to 16.6 million in Q1 2016, compared to the same period in 2015. The move increased its market share from 10.2% to 15.8% taking it to the top of the Chinese leader board, while Apple lost ground dropping from 12.3% to 11%.

While this may be seen as unsurprising in some quarters of the industry, success in the international markets is becoming more apparent. According to research from Gartner, sales of smartphones to end users totalled 349 million units in the first quarter of 2016, a 3.9 percent increase over the same period in 2015. Samsung accounted for roughly 23% of the market, whereas Apple was just under 15%. Huawei increased its share 5.4% to 8.3%, taking it to third in the global market share tables. The company is expected to continue to ramp up its R&D focus over foreseeable future.

Although the company did not detail the enterprise business units figures though that is likely to be outlined in the coming weeks. The enterprise business, which includes cloud computing, storage, and SDN products, Safe City and Electric Power IoT solutions, did announce healthy growth of 44% to $4.5 billion during its annual Global Analyst Summit in April.

In the carrier business, the role of 5G and IoT was reaffirmed, and the team will be focusing on four areas within the telco industry, business, operations, architecture, and networks. While the carrier business has been demonstrating strong growth throughout the world, it has struggled in the US after its technology was effectively banned over concerns it would be used by Chinese authorities to spy on the US. While Huawei has continually denied the allegations, it has struggled to rebound and reassert itself in the market.

Elsewhere in the industry, competitor Ericsson has been experiencing slightly different fortunes after CEO Hans Vestberg resigned following another difficult quarter for the company. Last week, the company reported an 11% annual decline in net sales with pressure continuing to build against Vestberg.

Business Transformation, Enterprise IT, Gartner, News & Analysis, skills gap

Cloud computing will impact $1 trillion of IT spending decisions – Gartner

July 21, 2016 Jamie Davies

Analyst firm Gartner has predicted more than $1 trillion in IT spending will be directly or indirectly impacted by the transition to cloud computing by 2020.

As IT spend steadily shifts from traditional IT offerings through to the cloud, a process which the Gartner team has coined the ‘cloud shift’, the rate in which enterprise organizations transition through to cloud is expected to gradually increase year-on-year. The aggregate amount of cloud shift in 2016 is estimated to reach $111 billion, though this will increase to $216 billion in 2020. The Gartner team believe cloud computing will be one of the most disruptive forces of IT spending since the early days of the digital age.

“Cloud-first strategies are the foundation for staying relevant in a fast-paced world,” said Ed Anderson, Research VP at Gartner. “The market for cloud services has grown to such an extent that it is now a notable percentage of total IT spending, helping to create a new generation of start-ups and “born in the cloud” providers.”

In terms of the specific segments, IaaS is the largest market accounting for $294 billion, though demonstrates one of the lowest levels of cloud shift through 2016, only representing a cloud shift rate of 17%. Business Process Outsourcing, or BPaaS, will represent the biggest cloud shift rate at 43%, though the expected market value through 2016 will be $119 billion.

Cloud Shift Summary by Market Segment

While the potential of cloud computing has been exhaustively discussed over recent years, one of the growing debates in the industry has been centred on the skills gap. Cloud requires not only new skills within the organization, but also a different approach in problem solving as well as a new business culture, should be benefits be realized. This challenge is currently being addressed by numerous organizations throughout the world.

“There is no doubt that cloud delivers unmatched business benefits in terms of usability, choice and agility,” said Angelo Di Ventura, Director at Trustmarque. “At the same time it requires wholly new skills and capabilities, and a complete IT transformation to maximise the value that businesses can gain from it – cloud can cause considerable disruption if left unchecked.

“The transition from an internet-enabled business to a digital business running in the cloud represents a huge jump for the majority of IT departments, whose existing infrastructure is designed for ‘business as usual’ operations. Ultimately, there is no one-size-fits-all model when it comes to making cloud work for a business.”

AI, Artificial Intelliegence, Azure, Cortana, Financial Results, Microsoft, News & Analysis, Public Cloud

Microsoft continues cloud transformation with 100% Azure growth

July 20, 2016 Jamie Davies

Microsoft has reported 5% growth to $22.6 billion as the Intelligent Cloud business unit led the charge, with the Azure public cloud offering more than doubling in revenues and compute usage, reports Telecoms.com.

The Intelligent Cloud unit, which includes server products and cloud services, Azure and enterprise mobility offerings grew 7% to $6.7 billion, while the Productivity and Business Processes, which includes Office commercial and consumer product lines as well as the Dynamics suite, grew 5% to $7 billion. Despite revenues in More Personal Computing declining 4% to $8.9 billion, Xbox Live monthly active users grew 33% year-over-year to 49 million and search advertising revenue grew 16% over the period.

“We delivered $22.6 billion in revenue this quarter, an increase of 5% for the quarter in constant currency,” said Satya Nadella, CEO at Microsoft. “This past year was pivotal in both our own transformation and in partnering with our customers who are navigating their own digital transformations. The Microsoft Cloud is seeing significant customer momentum and we’re well positioned to reach new opportunities in the year ahead.”

Cloud computing has once again brought Microsoft to the forefront of the technology industry following a challenging couple of years. It would appear the transition from software to cloud computing brand is being successfully navigated, though there were a few missed steps along the way, most notably the team’s foray into mobile. Microsoft is moving towards the position of ‘mega-vendor’, infiltrating almost all aspects of an organization (cloud, hardware, social, databases etc.), to make it an indispensable factor of a CIOs roster.

The Intelligent Cloud unit continues as the focal point of the company’s growth strategy, as Nadella claims nearly 60% of the Fortune 500 companies use at least three of the company’s cloud offerings, generating more than $12 billion in Commercial Cloud annualized revenue run rate.

“Companies looking to digitally transform need a trusted cloud partner and turn to Microsoft,” said Nadella. “As a result, Azure revenue and usage again grew by more than 100% this quarter. We see customers choose Microsoft for three reasons. They want a cloud provider that offers solutions that reflect the realities of today’s world and their enterprise-grade needs. They want higher level services to drive digital transformation, and they want a cloud open to developers of all types.”

AI has previously been positioned as one of the cornerstones of growth for the company, and this was reinforced during the earnings call, as Nadella noted the component of the Intelligent Cloud business unit. The Cortana Intelligence Suite, formerly known as Cortana Analytics Suite, is built on the company’s on-going research into big data, machine learning, perception, analytics and intelligent bots. The offering allows developers to build apps and bots which interact with customers in a personalized way, but also react to real-world developments in real-time.

“Just yesterday, we announced Boeing will use Azure, our IoT suite, and Cortana Intelligence to drive digital transformation in commercial aviation, with connected airline systems optimization, predictive maintenance, and much more,” said Nadella. “This builds on great momentum in IoT. This is great progress, but our ambitions are set even higher. Our Intelligent Cloud also enables cognitive services. Cortana Intelligence Suite offers machine learning capabilities and advanced predictive analytics.

“Central to our Intelligent Cloud ambition is providing developers with the tools and capabilities they need to build apps and services for the platforms and devices of their choice. The new Azure Container service as well as .NET Core 1.0 for open source and our ongoing work with companies such as Red Hat, Docker, and Mesosphere reflects significant progress on this front. We continue to see traction from open source, with nearly a third of customer virtual machines on Azure running Linux.”

The company exceeded analyst expectations for the quarter, which was reflected in pre-market trading which saw shares in the giant growing 4%. In terms of outlook for the next quarter, most business units are expected to be down a fraction on the Q2 reported figures, unsurprising considering the summer period. Intelligent Cloud is expected to bring between $6.1-6.3 million, Productivity and Business Processes $6.4-6.6 billion, and More Personal Computing $8.7-9 billion.

AI, Cognitive, Financial Results, IBM, News & Analysis

IBM makes cloud progress but reports another quarterly decline

July 19, 2016 Jamie Davies

IBM revenues continued to fall for a 17^th consecutive quarter despite beating analyst expectations and demonstrating healthy growth in its cloud and data business units, reports Telecoms.com.

The company reported a drop in revenues for Q2 of 2.8% to $20.24 billion, though this was an improvement on analyst expectations of $20.03 billion, encouraging shares to rise 2.6% to $164 after hours. The business units which the company deems strategic imperatives, cloud, analytics and engagement, gained 12% year-on-year, though this wasn’t enough to counter the impact of legacy technologies on reported earnings which fell to $2.5 billion from $3.45 billion in 2015. Overall, revenues are now roughly 25% lower than the numbers reported in 2011.

“We continued to deliver double-digit revenue growth in our strategic imperatives,” said CFO Martin Schroeter on the company’s earnings call this week. “Over the last 12 months, strategic imperatives delivered $31 billion in revenue, and now represent 38% of IBM.

“Growth was led by cloud, where our revenue was up 30% to $3.4 billion in the quarter, and over $11.5 billion over the last year so good progress in cloud. Looking at revenue from a segment perspective, the strongest growth came from cognitive solutions led by our analytics and cognitive capabilities and security.”

Schroeter was keen to emphasise the impact Watson is having on the business, as the team continue its journey to redefine Big Blue in the age of cloud computing. Numerous customers were listed as wins for IBM in the cognitive computing sector, as IBM continues to champion Watson as a platform to bring together the digital business with digital intelligence to improve decision-making and add intelligence to products and processes. Watson will continue to be the jewel in the crown of Big Blue as the company moves towards the new digital era.

Despite revenues continuing to fall the team has made a number of positive launches throughout the quarter. Quantum computing is now available on the IBM cloud, the team launched a new partnership with Box to counter the impact of EU-US Privacy Shield on its international business, and an expanded partnership with VMWare expanded the reach of its security portfolio.

In terms of the specific segments, revenues in the cognitive team rose 4%, though this is down from 9% growth in the previous quarter, solutions software revenue was up 6% for the quarter, SAS was another area which recorded triple digit growth and Schroeter claims IBM’s security business outperformed the market by three times. The IBM interactive experience unit also demonstrated healthy growth, as the team continue its journey into an entirely new market for Big Blue.

“We have opened over 30 digital studios around the globe including new studios in Singapore and Seoul,” said Schroeter. “We also completed the acquisition of Aperto, a digital agency in Berlin with over 300 employees and a roster of enterprise clients such as Airbus and Siemens.”

One area which has caught the headlines in recent weeks is the impact of Brexit on the fortunes of the technology sector. Despite concerns from various corners of the industry, it would not have appeared to have a significant impact on the long-term vision of IBM.

“I don’t think that Brexit coming at the end of the quarter helped us at all, but we obviously finished kind of right where we expected to finish,” said Schroeter. “And when we look at our full view of the year, we don’t see an impact, if you will, that has any real materiality on us.

“What I typically observe in these kinds of instances is that our discussions with our clients have to go through a process of reprioritization. So as they reprioritize, the length of time that takes depends a lot on how much uncertainty they’re faced with. And obviously, the political leadership in Europe and the UK can help reduce that uncertainty, but we didn’t see – again, we don’t think it helped but it didn’t cause us to change our guidance.”

While revenues have continued to fall for the tech giant, it would appear to be heading in the right direction. The strategic imperatives business units are now accounting for a larger proportion of the overall figures, now 38%, indicating the tide may be turning for IBM. Schroeter also highlighted the team are not happy relying solely on the progress of Watson, as IBM has acquired 20 companies in the last twelve months, which are now beginning to contribute in a more significant manner.

Although progress is starting to be seen, it would be worth noting it has not been an entirely smooth ride for IBM. There have been numerous new product launches and advances into new market segments, though this has come at a cost of more than 70,000 redundancies over recent months. While there has been a slight increase in share price following the announcement, it would be worth noting previous performance has had an impact on IBM. Shares in Big Blue have dropped 17% since CEO Virginia Rometty took over in January 2012 while the S&P 500 index rose 70% during the same period.

Enterprise IT, News & Analysis, NFV, SDN, VNF

AT&T expands NFV and SDN offering worldwide

July 18, 2016 Jamie Davies

AT&T has expanded its Network on Demand solutions to now include 76 countries around the world, reports Telecoms.com.

The new service is built on the company’s software-defined network technology, and claimed to help businesses deploy a single universal piece of equipment, choose virtualized functions and set them up in different countries. The service would appear to be designed to simplify the process of buying and adding network functions, reducing the reliance customers have on hardware.

“Building networks by deploying network functions in software is a major shift in network design,” said Ralph de la Vega, CEO of AT&T Business Solutions and International. “We’ve broken through traditional, cost-prohibitive barriers. Our software platform delivers a simple, flexible and efficient experience for any business, virtually anywhere and anytime they need it.”

The service was initially launched in 2015, with AT&T claiming it now has more than 1,200 businesses signed up to the service. 76 countries are now supported by the service, with capabilities including Juniper Networks virtual routing, Cisco virtual router, Fortinet virtual security, and Riverbed virtual WAN optimisation. The service is the third the company has launched on the SDN platform.

The launch builds on wider trends within the industry as telcos aim to utilize the flexibility and speed of SDN and NFV to recoup lost revenues. Traditional revenues streams of voice calls and text messaging have been slowly eroded in recent years, as more customer switch to OTT services such as WhatsApp. Creating new services for business customers is generally regarded as critical if the industry is to avoid being relegated to the likes of utilities.

It would appear to have been a busy couple of weeks for the AT&T team who also made a couple of new announcements last week. On the enterprise side of things, the team it was adding faster internet speeds, up to 1 Gbps, for business customers using the AT&T Business Fiber service. On the consumer side, AT&T also announced it has reached the trial phase of its national drone programme, which focuses on how AT&T customers can benefit from drone-based solutions, including providing enhanced LTE wireless coverage.

AR, augmented reality, cyber security, IoT, Mobile, News & Analysis, server

Are cyber attacks covering up server inadequacies at Pokémon Go?

July 18, 2016 Jamie Davies

Pokémon Go users have continued to struggle as the app’s developer Niantic Labs recovers from hacker attacks and unprecedented demand for the game, reports Telecoms.com.

Claimed attacks from various hacker groups would have appeared to cover up server inadequacies at Niantec Labs, as the team seemingly struggles to meet capacity demands following the games launch in 27 countries worldwide.

Over the course of the weekend, various hacker groups including PoodleCorp and OurMine have claimed responsibility for a distributed denial of service (DDoS) attack, causing a slow and clunky experience for many players around the world. Although the Niantec Labs team has played down the incidents, disruptions have continued into Monday morning with the Telecoms.com editorial team unable to access the game effectively. Whether this can be attributed to the claimed attacks or a lack of server capacity is unclear for the moment.

The hacker saga would have appeared to have started over the weekend, with OurMine stating on its website, “Today We will attack “Pokemon Go” Login Servers! so no one will be able to play this game till Pokemon Go contact us on our website to teach them how to protect it! We will attack it after 3-4 hours! Be ready! We will update you!” This was followed by another statement declaring the servers were down. PoodleCorp claimed the day before (June 16), it had caused an outage, though also said to expect a larger attack in the near future.

While both of these attacks have attracted headlines, it would also appear to have covered up shortcomings on the company’s infrastructure and its ability to deal with high demand. The launch of Pokémon Go has been well documented over the last few weeks as it has been lauded by numerous sources as the biggest mobile game in US history. Even before its official release in the UK, EE announced it saw 350,000 unique users of Pokémon GO on its network.

“This is the fastest take up of an app or game we’ve ever seen – and that’s before it’s officially launched! People across the country are going to be relying on a mobile data network that’s everywhere they go,” said Matt Stagg, EE head of video and content strategy.

Despite claims the server problems have been addressed, complaints have continued to be voiced. Server status tracking website Downdetector stated 39,013 complaints were registered at 22.00 (EST) on July 17. The Niantic Labs team are seemingly underestimating demand for Pokémon Go with each launch, which would be a nice problem to have.

While Telecoms.com was unable to identify Niantic Labs specific cloud set-up, other reports have identified Google as the chosen platform. Although there are no specific announcements linking the two organizations, Niantec was spun out of Google in October last year, and currently has John Hanke at the helm, who was previous VP of Product Management for Google’s Geo division, which includes Google Earth, Google Maps and StreetView. A job vacancy is also on the company’s website which asks for experience in dealing with Google Cloud or AWS.

Although AWS has been listed on the job vacancy, it would be fair to assume it is not involved currently as CTO Werner Vogels couldn’t resist making a joke at the affair stating “Dear cool folks at @NianticLabs please let us know if there is anything we can do to help!” on his twitter account. This could imply some insider knowledge from Vogels as it would be most likely the company would take a swipe at its closest rivals in the public cloud market segment, namely Google or Microsoft Azure.

The claims of the DDoS attacks would appear to have come at an adequate time, as it has taken the heat off the cloud infrastructure inadequacies. According to Business Insider, Hanke said the international roll-out of the game would be “paused until we’re comfortable”, with relation to the server capacity issues. It would seem the company is prepared to ride the wave of demand, as well as complaints, and fix the server problem later, as launches and server issues continued following that interview.

The cloud news categorized.