Welcome!

Big Data Journal Authors: Carmen Gonzalez, Liz McMillan, Victoria Livschitz, Elizabeth White, Pat Romanski

Related Topics: Cloud Expo, Java, SOA & WOA, Linux, Virtualization, SDN Journal

Cloud Expo: Article

Who Will Win the Enterprise Cloud Race in 2014?

As each vendor makes a move to build a top-tier enterprise cloud, others will counter

And the race is on. The cloud industry is abuzz with recent M&A and product news pointing towards what appears to be the Holy Grail for helping large companies move to the cloud with confidence. Both private and public cloud vendors are vying for a spot in the relatively new and rapidly growing market segment of enterprise cloud. CenturyLink swooped up Tier 3 in an attempt to establish a stronger enterprise offering; Amazon Web Services (AWS) announced its enterprise play at re:Invent; IBM acquired SoftLayer; and even the Google Compute Engine has been quick to follow in the footsteps of its competitors.

As each vendor makes a move to build a top-tier enterprise cloud, others will counter. With so much product and M&A activity going on, all that's left to ask is: What's next?

Enterprise Cloud Market Dynamics
Now that the basic self-service public cloud has been fine-tuned and heavily utilized (and with very little empty space given AWS' significant presence), cloud vendors are pivoting to take advantage of new market segments surrounding the enterprise.

Enterprise IT is rightly risk averse. They have high expectations of uninterrupted performance and need to meet the highest standards for security and compliance. Enterprises traditionally run a complex IT operation supporting many different applications, and require high levels of performance and security.

Moving these production and mission-critical applications to the cloud is by no means an easy feat. Most applications pre-date the cloud and were not written to adapt to its dynamic, on-demand and shared resources. Cloud vendors cannot simply rebrand a (dedicated) hosting offer as cloud for enterprises and expect adoption; the proper tools and capabilities must be in place.

Security and performance mean everything to enterprises. They need to meet stringent business and audit requirements. Cloud providers are working feverishly to adhere to these criteria, hence the recent push throughout the cloud industry for enhanced cloud security compliance standards and performance assured SLAs.

To stay ahead of the curve and address enterprise needs, companies like CenturyLink, and IBM earlier this year, pinpointed valuable technologies and acquired them. They are now integrating the solutions of these acquisitions, Tier 3 and SoftLayer respectively, to better optimize compute memory, network and storage. We've also seen new capabilities added to enhance existing software solutions (with announcements by VMware, various open stack vendors, Joyent and my company, Virtustream). Through acquisitions and new product releases, providers are working toward comprehensive cloud stacks that support multiple market segments (SMBs and enterprises, test/dev and production environments).

As a measure of success in the Infrastructure-as-a-Service (IaaS market), the Gartner Magic Quadrant ranks the top 15 providers. In the course of six months, two of the top 15 have been acquired (Tier 3, SoftLayer), two have made major acquisitions to improve their positions (IBM, CenturyLink), two have announced major strategic shifts (Verizon, HP) and there are only three private companies left on the list (Virtustream, Joyent, GoGrid). The chess board is very active.

Enterprise Cloud Is Anyone's Race
The cloud stack wars are intense with large groups like VMware enhancing private virtualization, and open source movements like OpenStack and Apache CloudStack enhancing capabilities and strengthening public multi-tenant clouds. AWS has built a compelling business with their self-service, best-efforts public cloud. OpenStack has begun to build the foundation of an open source alternative, although it is still far off from being a full-function cloud stack. We're also seeing cloud specialists like Virtustream, Tier3, Joyent and smaller start-ups enhancing cloud security, usability, performance and compliance, helping to extend the cloud use cases to mission-critical applications.

AWS's success in the DevOps, SaaS, backup/DR space is impressive, but its impact on the enterprise market has been limited to date. Given that the vast majority of enterprise apps that are ‘traditional' applications (like ERP, CRM, DB and custom applications) are only now beginning to move to the cloud, we have only seen the tip of the iceberg that will rip through the enterprise IT market.

Looking ahead, the only safe prediction to make is that there is a lot more growth in enterprise cloud still to come. We'll see continued enhancements to ‘basic' cloud capabilities, new use cases like ‘classic enterprise applications' and considerable further innovation as more valuable IP and solutions are developed. It remains an open question whether it will be the larger software companies, the public cloud giants or the new innovators who will be the first to develop and deliver well-rounded, full-function cloud stacks.

This year, expect the battle for the enterprise cloud market to heat up even further. As a $3.8 trillion dollar enterprise IT market continues to move to the cloud in 2014, the key players are going to be in flux for some time to come. Right now it's anyone's race but those vendors that can demonstrate enterprise class performance, security and hybrid capabilities will emerge as the winners.

More Stories By Simon Aspinall

Simon Aspinall is the Chief of Vertical Markets, Strategy and Marketing for Virtustream. In this global role, he leads Virtustream's strategic priorities, operates vertical market/sectors (service provider, emerging, industry verticals) and is the company's Chief Marketing Officer (CMO). In the strategy role Simon works with the CEO(s) to set and execute Virtustream's strategic priorities. As CMO Simon is responsible for developing and executing Virtustream's marketing strategy with virtual, interactive viral and traditional marketing for customers, field, social, analyst, press and financial audiences - driving Virtustream's expansion of its xStream software business, Cloud managed services and the launch of a trusted cloud exchange for enterprise-class cloud federation. As Virtustream enters new market sectors and geographies Simon's Vertical Markets role is to rapidly develop these new sectors and grow Virtustream's business through the company's salesteam and partners.

Simon holds a master's degree in engineering and computer science from Oxford University and a master's degree in business administration from INSEAD. He is also a frequent speaker at industry events and a commentator on the IT, telecom, and networking sectors.

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


@BigDataExpo Stories
The 4th International DevOps Summit, co-located with16th International Cloud Expo – being held June 9-11, 2015, at the Javits Center in New York City, NY – announces that its Call for Papers is now open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's large...
SAP is delivering break-through innovation combined with fantastic user experience powered by the market-leading in-memory technology, SAP HANA. In his General Session at 15th Cloud Expo, Thorsten Leiduck, VP ISVs & Digital Commerce, SAP, discussed how SAP and partners provide cloud and hybrid cloud solutions as well as real-time Big Data offerings that help companies of all sizes and industries run better. SAP launched an application challenge to award the most innovative SAP HANA and SAP HANA...
Cultural, regulatory, environmental, political and economic (CREPE) conditions over the past decade are creating cross-industry solution spaces that require processes and technologies from both the Internet of Things (IoT), and Data Management and Analytics (DMA). These solution spaces are evolving into Sensor Analytics Ecosystems (SAE) that represent significant new opportunities for organizations of all types. Public Utilities throughout the world, providing electricity, natural gas and water,...
The security devil is always in the details of the attack: the ones you've endured, the ones you prepare yourself to fend off, and the ones that, you fear, will catch you completely unaware and defenseless. The Internet of Things (IoT) is nothing if not an endless proliferation of details. It's the vision of a world in which continuous Internet connectivity and addressability is embedded into a growing range of human artifacts, into the natural world, and even into our smartphones, appliances, a...
How do APIs and IoT relate? The answer is not as simple as merely adding an API on top of a dumb device, but rather about understanding the architectural patterns for implementing an IoT fabric. There are typically two or three trends: Exposing the device to a management framework Exposing that management framework to a business centric logic Exposing that business layer and data to end users. This last trend is the IoT stack, which involves a new shift in the separation of what stuff happe...
The 3rd International Internet of @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that its Call for Papers is now open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
The Internet of Things is tied together with a thin strand that is known as time. Coincidentally, at the core of nearly all data analytics is a timestamp. When working with time series data there are a few core principles that everyone should consider, especially across datasets where time is the common boundary. In his session at Internet of @ThingsExpo, Jim Scott, Director of Enterprise Strategy & Architecture at MapR Technologies, discussed single-value, geo-spatial, and log time series dat...
An entirely new security model is needed for the Internet of Things, or is it? Can we save some old and tested controls for this new and different environment? In his session at @ThingsExpo, New York's at the Javits Center, Davi Ottenheimer, EMC Senior Director of Trust, reviewed hands-on lessons with IoT devices and reveal a new risk balance you might not expect. Davi Ottenheimer, EMC Senior Director of Trust, has more than nineteen years' experience managing global security operations and asse...
The Internet of Things will greatly expand the opportunities for data collection and new business models driven off of that data. In her session at @ThingsExpo, Esmeralda Swartz, CMO of MetraTech, discussed how for this to be effective you not only need to have infrastructure and operational models capable of utilizing this new phenomenon, but increasingly service providers will need to convince a skeptical public to participate. Get ready to show them the money!
"SAP had made a big transition into the cloud as we believe it has significant value for our customers, drives innovation and is easy to consume. When you look at the SAP portfolio, SAP HANA is the underlying platform and it powers all of our platforms and all of our analytics," explained Thorsten Leiduck, VP ISVs & Digital Commerce at SAP, in this SYS-CON.tv interview at 15th Cloud Expo, held Nov 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Enthusiasm for the Internet of Things has reached an all-time high. In 2013 alone, venture capitalists spent more than $1 billion dollars investing in the IoT space. With "smart" appliances and devices, IoT covers wearable smart devices, cloud services to hardware companies. Nest, a Google company, detects temperatures inside homes and automatically adjusts it by tracking its user's habit. These technologies are quickly developing and with it come challenges such as bridging infrastructure gaps,...
"Cloud consumption is something we envision at Solgenia. That is trying to let the cloud spread to the user as a consumption, as utility computing. We want to allow the people to just pay for what they use, not a subscription model," explained Ermanno Bonifazi, CEO & Founder of Solgenia, in this SYS-CON.tv interview at Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at Internet of @ThingsExpo, James Kirkland, Chief Ar...
SAP is delivering break-through innovation combined with fantastic user experience powered by the market-leading in-memory technology, SAP HANA. In his General Session at 15th Cloud Expo, Thorsten Leiduck, VP ISVs & Digital Commerce, SAP, discussed how SAP and partners provide cloud and hybrid cloud solutions as well as real-time Big Data offerings that help companies of all sizes and industries run better. SAP launched an application challenge to award the most innovative SAP HANA and SAP HANA...
Vichara Technologies in Hoboken, New Jersey is expanding its capabilities in big data from origins on Wall Street into other areas, and thereby demonstrating the growing marketplace for advanced big-data analytics services. The next BriefingsDirect deep-dive big data benefits case study interview explores how Vichara Technologies in Hoboken, New Jersey is expanding its capabilities in big data from origins on Wall Street into other areas, and thereby demonstrating the growing marketplace for ad...
The definition of IoT is not new, in fact it’s been around for over a decade. What has changed is the public's awareness that the technology we use on a daily basis has caught up on the vision of an always on, always connected world. If you look into the details of what comprises the IoT, you’ll see that it includes everything from cloud computing, Big Data analytics, “Things,” Web communication, applications, network, storage, etc. It is essentially including everything connected online from ha...
Scene scenario: 10 am in a boardroom somewhere, second round of coffees served, Danish and donuts untouched, a quiet hush settles. “Well you know what guys? (and, by the use of the term guys I mean to include both sexes here assembled) – the trouble that we have as a company is that we are, to put it bluntly, just a little analytics poor,” said the newly appointed Chief Analytics Officer. That we should consider a firm to be analytically deficient or poor is a profound comment on our modern ag...
Cloud Expo 2014 TV commercials will feature @ThingsExpo, which was launched in June, 2014 at New York City's Javits Center as the largest 'Internet of Things' event in the world.
SYS-CON Events announced today that Windstream, a leading provider of advanced network and cloud communications, has been named “Silver Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. Windstream (Nasdaq: WIN), a FORTUNE 500 and S&P 500 company, is a leading provider of advanced network communications, including cloud computing and managed services, to businesses nationwide. The company also offers broadband, p...
The major cloud platforms defy a simple, side-by-side analysis. Each of the major IaaS public-cloud platforms offers their own unique strengths and functionality. Options for on-site private cloud are diverse as well, and must be designed and deployed while taking existing legacy architecture and infrastructure into account. Then the reality is that most enterprises are embarking on a hybrid cloud strategy and programs. In this Power Panel at 15th Cloud Expo (http://www.CloudComputingExpo.com...