|By Ed Featherston||
|March 24, 2014 11:49 AM EDT||
There is a common phrase, often attributed as a Chinese proverb/curse, "May you live in interesting times." For those following the cloud technology space, we are definitely living in interesting times. In their latest magic quadrant report on IaaS, Gartner describes the market as still evolving and maturing. This would imply the market leadership is in flux, yet according to Gartner "AWS is the overwhelming market share leader, with more than five times the compute capacity in use than the aggregate total of the other fourteen providers in this Magic Quadrant." I would say that makes AWS an 800lb gorilla in the room that the competition must get by. Many of those competitors could be considered 800lb gorillas in their own right. Microsoft, IBM, Google are not small companies, yet AWS has managed to create a dominant position in the marketplace.
Can AWS maintain that dominance? Who among the other ‘gorillas' could potentially knock AWS from its perch?
The Big Public Cage Match, IBM vs Amazon
As one would expect, the original 800lb gorilla, IBM, wants to be the one to knock AWS from that perch. Early last year, Amazon beat out IBM for a lucrative four year $600M cloud contract with the CIA. IBM immediately filed a bid protest in February, which was partially upheld by the GAO in June (A Big Win for Big Blue). The battle between the two behemoths continued through the summer. IBM worked to strengthen its IaaS credentials with the acquisition of SoftLayer. In October, what appeared to be a successful bid protest by IBM was overturned by the US Court of Federal claims, and IBM withdrew its injunctive action (IBM Steps back from CIA deal). The battle continued in November when IBM started a significant ad campaign, claiming it held a larger cloud business than Amazon. This blitz included running ads on buses in Las Vegas during Amazon's premier re:Invent conference. In January of this year, IBM committed to a 1.2B investment to expand their global cloud footprint.
The battle has created very diverse views in the industry as to who will finally win. Rob Enderle wrote a very compelling piece on why IBM will win the war with Amazon Web Services. He points out in their over 100-year history, IBM has battled many other disruptive competitors - a fact I am well aware of, being a former employee of Digital Equipment Corporation. Digital (DEC) rose in the '60s, disrupting the mainframe computing industry with a disruptive concept, the mini-computer. DEC eventually rose to being the number two computer manufacturer in the world (behind IBM). DEC is now a fond memory as it was since acquired by Compaq (a PC manufacturer) who was later acquired by Hewlett-Packard. IBM putting you in their sights is not to be taken lightly.
On the flip side, a very good counter argument to that viewpoint was written by David Linthicum, in his article Amazon Web Services has no reason to worry about IBM. One of the key points David makes is the argument that IBM will have difficulty adjusting to selling the cloud service model. He points out "the more cloud services that IBM sells, the less money it will make." In essence, it will displace existing IBM hardware and software with its own "public cloud offering." Add into this viewpoint, IBM doesn't always win. When Oracle first came on the scene, it disrupted the database world, and IBM came out guns a blazing. Oracle has not gone anywhere.
What About the Other Gorillas?
With all the coverage the IBM/AWS cage match has gotten this year, sometimes it's easy to forget there are other significant players in this marketplace. These players are not sitting back and waiting for the results of the IBM / AWS battle. Gartner analyst Lydia Long, in Where are the challengers to AWS?, states: "I think there's a critical shift happening in the market right now. Three very dangerous competitors are just now entering the market - Microsoft, Google and VMware. I think the real war for market share is just beginning." Forrester echoes a similar viewpoint. When viewing the market through a lens of the services provided (compute, RDBMS, storage), Forrester analyst Jeffery Hammond sees Microsoft and Google making strong inroads in the RDBMS and storage services space. As with IBM, Microsoft and Google have deep pockets to compete in this space and are not going to give up without a fight. What I find telling is that both these analysts did not even mention IBM vs. AWS, which has been getting the majority of the public attention. Google just announced a partner program that includes three tiers of third-party vendors providing technical and consulting services for Google's cloud platform.
Verizon Joins the Battle
Last October Verizon announced a new cloud offering built from the ground up to compete with AWS and the other IaaS vendors. This offering is different from their existing Verizon / Terramark cloud offering. The new offering is based on technology from CloudSwitch, a company Verizon acquired a little over two years ago. Verizon hopes to differentiate their offering by allowing the client to define specific performance capabilities around compute, I/O, memory and storage. Verizon states their technology allows them to avoid the ‘noisy neighbor' problem seen from other vendors, a not so subtle swipe at AWS.
In January Verizon announced a partnership with Oracle for their cloud environment. "Beginning in the first quarter of 2014, Oracle customers will be able to license Oracle Database 11g and 12C, Oracle Fusion Middleware and Oracle Enterprise Manager to run in Verizon's Managed Hosting and Enterprise Cloud virtual infrastructures, according to a Verizon document that details the Oracle partnership." While AWS does provide the ability to use Oracle 11g in their environment, the addition of the middleware components could be a key differentiator for Verizon.
This by itself is not a game changer, but is a sign that Verizon is serious about competing in this space. Verizon has its sights squarely in AWS's corner. In its announcement Verizon noted that it will continue to expand partnerships and the ecosystem around its cloud offerings. It quickly demonstrated that was just the first salvo. Verizon announced this week that it is extending its partnerships with CloudBees and CloudFoundry, including committing a monetary investment in CloudBees through its venture arm.
Net Neutrality, Could It Be a Game Changer?
In 2010 the FCC adopted the Preserving the Open Internet, Broadband Industry Practices as a means to enforce the concept of net neutrality on the Internet. This was in response to the practice of a variety of broadband providers (including Comcast and Verizon) that were throttling bandwidth usage based on the source. Some of these sources could have been considered competitors. The FCC net neutrality rule had three key components:
- Transparency - providers must disclose network management and performance information
- No Blocking - providers may not block lawful content and services
- No Unreasonable Discrimination - providers may not unreasonably discriminate in transmitting lawful traffic
Now the federal appeals court has struck down that rule. The suit was brought by Verizon. It immediately raised a question in my mind. Does this mean Verizon, in theory, could throttle access to public cloud providers (such as AWS), and provide better access to their own public cloud services? Imagine the impact that could have on the marketplace. Verizon could effectively lock the other gorillas in a room and start their own room.
Will this happen? Not overnight, that's for sure. The FCC has already said they would appeal the decision. Additionally the court did give the FCC some wiggle room in modifying the rule in a way that would pass the courts muster. The battle over net neutrality is far from over, but how it finally gets resolved could have long-term impact for us and the public cloud providers.
Who Will Still Be Standing in Two Years?
One thing that is clear, the market is still in flux. Gartner predicts that one in four cloud providers will be gone by 2015. IBM has already demonstrated the consolidation direction with their purchase of SoftLayer. Concerns about the risk of a cloud provider still being around could start creating a self-fulfilling prophecy for the smaller vendors. The failure of cloud storage provider Nirvanix last year has put this concern at the forefront for many buyers. If the small vendors become acquired, or forced out of business over the next two years, we could easily end up with a room full of just the 800lb gorillas as the market shakes out. The question will then become, how many of these 800lb gorillas can we fit in the room?
SYS-CON Events announced today the IoT Bootcamp – Jumpstart Your IoT Strategy, being held June 9–10, 2015, in conjunction with 16th Cloud Expo and Internet of @ThingsExpo at the Javits Center in New York City. This is your chance to jumpstart your IoT strategy. Combined with real-world scenarios and use cases, the IoT Bootcamp is not just based on presentations but includes hands-on demos and walkthroughs. We will introduce you to a variety of Do-It-Yourself IoT platforms including Arduino, Ras...
Apr. 25, 2015 07:15 PM EDT Reads: 3,026
SYS-CON Events announced today that Soha will exhibit at SYS-CON's DevOps Summit New York, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Soha delivers enterprise-grade application security, on any device, as agile as the cloud. This turnkey, cloud-based service enables customers to solve secure application access and delivery challenges that traditional or virtualized network solutions cannot solve because they are too expensive, inflexible and operational...
Apr. 25, 2015 03:45 PM EDT Reads: 1,698
Containers and microservices have become topics of intense interest throughout the cloud developer and enterprise IT communities. Accordingly, attendees at the upcoming 16th Cloud Expo at the Javits Center in New York June 9-11 will find fresh new content in a new track called PaaS | Containers & Microservices Containers are not being considered for the first time by the cloud community, but a current era of re-consideration has pushed them to the top of the cloud agenda. With the launch ...
Apr. 25, 2015 03:00 PM EDT Reads: 2,878
of cloud, colocation, managed services and disaster recovery solutions, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. TierPoint, LLC, is a leading national provider of information technology and data center services, including cloud, colocation, disaster recovery and managed IT services, with corporate headquarters in St. Louis, MO. TierPoint was formed through the strategic combination of some of t...
Apr. 25, 2015 02:30 PM EDT Reads: 1,662
Public Cloud IaaS started it's life in the developer and startup communities and has grown rapidly to a $20B+ industry, but it still pales in comparison to how much is spent worldwide on IT: $3.6 trillion. In fact, there are 8.6 million data centers worldwide, the reality is many small and medium sized business have server closets and colocation footprints filled with servers and storage gear. While on-premise environment virtualization may have peaked at 75%, the Public Cloud has lagged in ado...
Apr. 25, 2015 02:00 PM EDT Reads: 1,309
Dave will share his insights on how Internet of Things for Enterprises are transforming and making more productive and efficient operations and maintenance (O&M) procedures in the cleantech industry and beyond. Speaker Bio: Dave Landa is chief operating officer of Cybozu Corp (kintone US). Based in the San Francisco Bay Area, Dave has been on the forefront of the Cloud revolution driving strategic business development on the executive teams of multiple leading Software as a Services (SaaS) ap...
Apr. 25, 2015 02:00 PM EDT Reads: 1,573
What exactly is a cognitive application? In her session at 16th Cloud Expo, Ashley Hathaway, Product Manager at IBM Watson, will look at the services being offered by the IBM Watson Developer Cloud and what that means for developers and Big Data. She'll explore how IBM Watson and its partnerships will continue to grow and help define what it means to be a cognitive service, as well as take a look at the offerings on Bluemix. She will also check out how Watson and the Alchemy API team up to off...
Apr. 25, 2015 12:00 PM EDT Reads: 1,856 Replies: 1
The 17th International Cloud Expo has announced that its Call for Papers is open. 17th International Cloud Expo, to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, APM, APIs, Microservices, Security, Big Data, Internet of Things, DevOps and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding bu...
Apr. 25, 2015 12:00 PM EDT Reads: 2,316
The world's leading Cloud event, Cloud Expo has launched Microservices Journal on the SYS-CON.com portal, featuring over 19,000 original articles, news stories, features, and blog entries. DevOps Journal is focused on this critical enterprise IT topic in the world of cloud computing. Microservices Journal offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. Follow new article posts on T...
Apr. 25, 2015 11:00 AM EDT Reads: 2,107
In 2015, 4.9 billion connected "things" will be in use. By 2020, Gartner forecasts this amount to be 25 billion, a 410 percent increase in just five years. How will businesses handle this rapid growth of data? Hadoop will continue to improve its technology to meet business demands, by enabling businesses to access/analyze data in real time, when and where they need it. Cloudera's Chief Technologist, Eli Collins, will discuss how Big Data is keeping up with today's data demands and how in t...
Apr. 25, 2015 11:00 AM EDT Reads: 1,470
SYS-CON Media announced today that @ThingsExpo Blog launched with 7,788 original stories. @ThingsExpo Blog offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. @ThingsExpo Blog can be bookmarked. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago.
Apr. 25, 2015 11:00 AM EDT Reads: 2,561
SYS-CON Events announced today that Vicom Computer Services, Inc., a provider of technology and service solutions, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. They are located at booth #427. Vicom Computer Services, Inc. is a progressive leader in the technology industry for over 30 years. Headquartered in the NY Metropolitan area. Vicom provides products and services based on today’s requirements...
Apr. 25, 2015 10:30 AM EDT Reads: 1,755
Buzzword alert: Microservices and IoT at a DevOps conference? What could possibly go wrong? Join this panel of experts as they peel away the buzz and discuss the important architectural principles behind implementing IoT solutions for the enterprise. As remote IoT devices and sensors become increasingly intelligent, they become part of our distributed cloud environment, and we must architect and code accordingly. At the very least, you’ll have no problem filling in your buzzword bingo cards.
Apr. 25, 2015 10:00 AM EDT Reads: 2,215
SYS-CON Events announced today that Column Technologies, a global technology solutions company, will exhibit at SYS-CON's DevOps Summit 2015 New York, which will take place June 9-11, 2015, at the Javits Center in New York City, NY. Established in 1998, Column Technologies is a leader in application performance and infrastructure management for commercial and federal markets. The company is headquartered in the United States, with a diverse and talented team of more than 350 employees around th...
Apr. 25, 2015 10:00 AM EDT Reads: 1,802
The only place to be June 9-11 is Cloud Expo & @ThingsExpo 2015 East at the Javits Center in New York City. Join us there as delegates from all over the world come to listen to and engage with speakers & sponsors from the leading Cloud Computing, IoT & Big Data companies. Cloud Expo & @ThingsExpo are the leading events covering the booming market of Cloud Computing, IoT & Big Data for the enterprise. Speakers from all over the world will be hand-picked for their ability to explore the economic...
Apr. 25, 2015 10:00 AM EDT Reads: 4,185
SYS-CON Events announced today that AIC, a leading provider of OEM/ODM server and storage solutions, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. AIC is a leading provider of both standard OTS, off-the-shelf, and OEM/ODM server and storage solutions. With expert in-house design capabilities, validation, manufacturing and production, AIC's broad selection of products are highly flexible and are conf...
Apr. 25, 2015 10:00 AM EDT Reads: 5,037
SOA Software has changed its name to Akana. With roots in Web Services and SOA Governance, Akana has established itself as a leader in API Management and is expanding into cloud integration as an alternative to the traditional heavyweight enterprise service bus (ESB). The company recently announced that it achieved more than 90% year-over-year growth. As Akana, the company now addresses the evolution and diversification of SOA, unifying security, management, and DevOps across SOA, APIs, microser...
Apr. 25, 2015 09:15 AM EDT Reads: 2,429
SYS-CON Events announced today that Creative Business Solutions will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Creative Business Solutions is the top stocking authorized HP Renew Distributor in the U.S. Based out of Long Island, NY, Creative Business Solutions offers a one-stop shop for a diverse range of products including Proliant, Blade and Industry Standard Servers, Networking, Server Options and...
Apr. 25, 2015 09:15 AM EDT Reads: 4,357
The list of ‘new paradigm’ technologies that now surrounds us appears to be at an all time high. From cloud computing and Big Data analytics to Bring Your Own Device (BYOD) and the Internet of Things (IoT), today we have to deal with what the industry likes to call ‘paradigm shifts’ at every level of IT. This is disruption; of course, we understand that – change is almost always disruptive.
Apr. 25, 2015 09:00 AM EDT Reads: 1,526
After making a doctor’s appointment via your mobile device, you receive a calendar invite. The day of your appointment, you get a reminder with the doctor’s location and contact information. As you enter the doctor’s exam room, the medical team is equipped with the latest tablet containing your medical history – he or she makes real time updates to your medical file. At the end of your visit, you receive an electronic prescription to your preferred pharmacy and can schedule your next appointment...
Apr. 25, 2015 09:00 AM EDT Reads: 1,438