|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?
There will be 50 billion Internet connected devices by 2020. Today, every manufacturer has a propriety protocol and an app. How do we securely integrate these "things" into our lives and businesses in a way that we can easily control and manage? Even better, how do we integrate these "things" so that they control and manage each other so our lives become more convenient or our businesses become more profitable and/or safe? We have heard that the best interface is no interface. In his session at Internet of @ThingsExpo, Chris Matthieu, Co-Founder & CTO at Octoblu, Inc., will discuss how these devices generate enough data to learn our behaviors and simplify/improve our lives. What if we could connect everything to everything? I'm not only talking about connecting things to things but also systems, cloud services, and people. Add in a little machine learning and artificial intelligence and now we have something interesting...
Jul. 30, 2014 09:45 PM EDT Reads: 1,024
SYS-CON Events announced today that Cloudian, Inc., the leading provider of hybrid cloud storage solutions, has been named “Bronze Sponsor” of SYS-CON's 15th International Cloud Expo®, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Cloudian is a Foster City, Calif.-based software company specializing in cloud storage. Cloudian HyperStore® is an S3-compatible cloud object storage platform that enables service providers and enterprises to build reliable, affordable and scalable hybrid cloud storage solutions. Cloudian actively partners with leading cloud computing environments including Amazon Web Services, Citrix Cloud Platform, Apache CloudStack, OpenStack and the vast ecosystem of S3 compatible tools and applications. Cloudian's customers include Vodafone, Nextel, NTT, Nifty, and LunaCloud. The company has additional offices in China and Japan.
Jul. 30, 2014 08:15 PM EDT Reads: 1,162
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Jul. 30, 2014 02:46 PM EDT Reads: 758
The Internet of Things is not new. Historically, smart businesses have used its basic concept of leveraging data to drive better decision making and have capitalized on those insights to realize additional revenue opportunities. So, what has changed to make the Internet of Things one of the hottest topics in tech? In his session at Internet of @ThingsExpo, Chris Gray, Director, Embedded and Internet of Things, will discuss the underlying factors that are driving the economics of intelligent systems. Discover how hardware commoditization, the ubiquitous nature of connectivity, and the emergence of Big Data and analysis are providing the pull to meet customer expectations of a widely connected, multi-dimensional universe of people, things, and information.
Jul. 30, 2014 10:45 AM EDT Reads: 1,005
SYS-CON Events announced today that Esri has been named “Bronze Sponsor” of SYS-CON's 15th International Cloud Expo®, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Esri inspires and enables people to positively impact the future through a deeper, geographic understanding of the changing world around them. For more information, visit http://www.esri.com.
Jul. 30, 2014 08:00 AM EDT Reads: 1,270
After a couple of false starts, cloud-based desktop solutions are picking up steam, driven by trends such as BYOD and pervasive high-speed connectivity. In his session at 15th Cloud Expo, Seth Bostock, CEO of IndependenceIT, cuts through the hype and the acronyms, and discusses the emergence of full-featured cloud workspaces that do for the desktop what cloud infrastructure did for the server. He’ll discuss VDI vs DaaS, implementation strategies and evaluation criteria.
Jul. 29, 2014 11:45 AM EDT Reads: 1,593
Cloud computing started a technology revolution; now DevOps is driving that revolution forward. By enabling new approaches to service delivery, cloud and DevOps together are delivering even greater speed, agility, and efficiency. No wonder leading innovators are adopting DevOps and cloud together! In his session at DevOps Summit, Andi Mann, Vice President of Strategic Solutions at CA Technologies, will explore the synergies in these two approaches, with practical tips, techniques, research data, war stories, case studies, and recommendations.
Jul. 29, 2014 10:00 AM EDT Reads: 1,700
Cloud Computing is evolving into a Big Three of Amazon Web Services, Google Cloud, and Microsoft Azure. Cloud 360: Multi-Cloud Bootcamp, being held Nov 4–5, 2014, in conjunction with 15th Cloud Expo in Santa Clara, CA, delivers a real-world demonstration of how to deploy and configure a scalable and available web application on all three platforms. The Cloud 360 Bootcamp, led by Janakiram MSV, an analyst with Gigaom Research, is the first bootcamp that introduces the core concepts of Infrastructure as a Service (IaaS) based on the workings of the Big Three platforms – Amazon EC2, Google Compute Engine, and Azure VMs. Bootcamp attendees will get to see the big picture and also receive the knowledge needed to make the best cloud decisions for their business applications and entire enterprise IT organization.
Jul. 28, 2014 01:30 AM EDT Reads: 2,141
“Distrix fits into the overall cloud and IoT model around software-defined networking. There’s a broad category around software-defined networking that’s focused on data center, and we focus on the WAN,” explained Jay Friedman, President of Distrix, in this SYS-CON.tv interview at the Internet of @ThingsExpo, held June 10-12, 2014, at the Javits Center in New York City. Internet of @ThingsExpo 2014 Silicon Valley, November 4–6, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading IoT industry players in the world.
Jul. 27, 2014 11:45 PM EDT Reads: 2,703
The Internet of Things promises to transform businesses (and lives), but navigating the business and technical path to success can be difficult to understand. In his session at 15th Internet of @ThingsExpo, Chad Jones, Vice President, Product Strategy of LogMeIn's Xively IoT Platform, will show you how to approach creating broadly successful connected customer solutions using real world business transformation studies including New England BioLabs and more.
Jul. 27, 2014 11:45 PM EDT Reads: 2,675
Scott Jenson leads a project called The Physical Web within the Chrome team at Google. Project members are working to take the scalability and openness of the web and use it to talk to the exponentially exploding range of smart devices. Nearly every company today working on the IoT comes up with the same basic solution: use my server and you'll be fine. But if we really believe there will be trillions of these devices, that just can't scale. We need a system that is open a scalable and by using the URL as a basic building block, we open this up and get the same resilience that the web enjoys.
Jul. 27, 2014 11:00 PM EDT Reads: 2,270
“The Internet of Things is a wave that has arrived and it’s growing really fast. The concern at Aria Systems is making sure that people understand the ramifications of their attempts to monetize whatever it is they build on the Internet of Things," explained C Brendan O’Brien, Co-founder and Chief Architect at Aria Systems, in this SYS-CON.tv interview at the Internet of @ThingsExpo, held June 10-12, 2014, at the Javits Center in New York City. Internet of @ThingsExpo 2014 Silicon Valley, November 4–6, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading IoT industry players in the world.
Jul. 27, 2014 09:00 PM EDT Reads: 2,380
The Internet of Things is a natural complement to the cloud and related technologies such as Big Data, analytics, and mobility. In his session at Internet of @ThingsExpo, Joe Weinman will lay out four generic strategies – digital disciplines – to exploit emerging digital technologies for strategic advantage. Joe Weinman has held executive leadership positions at Bell Labs, AT&T, Hewlett-Packard, and Telx, in areas such as corporate strategy, business development, product management, operations, and R&D.
Jul. 21, 2014 11:17 AM EDT Reads: 2,012
SYS-CON Events announced today that DevOps.com has been named “Media Sponsor” of SYS-CON's “DevOps Summit at Cloud Expo,” which will take place on June 10–12, 2014, at the Javits Center in New York City, New York. DevOps.com is where the world meets DevOps. It is the largest collection of original content relating to DevOps on the web today Featuring up-to-the-minute news, feature stories, blogs, bylined articles and more, DevOps.com is where the thought leaders of the DevOps movement make their ideas known.
Jul. 20, 2014 03:00 PM EDT Reads: 1,795
There are 182 billion emails sent every day, generating a lot of data about how recipients and ISPs respond. Many marketers take a more-is-better approach to stats, preferring to have the ability to slice and dice their email lists based numerous arbitrary stats. However, fundamentally what really matters is whether or not sending an email to a particular recipient will generate value. Data Scientists can design high-level insights such as engagement prediction models and content clusters that allow marketers to cut through the noise and design their campaigns around strong, predictive signals, rather than arbitrary statistics. SendGrid sends up to half a billion emails a day for customers such as Pinterest and GitHub. All this email adds up to more text than produced in the entire twitterverse. We track events like clicks, opens and deliveries to help improve deliverability for our customers – adding up to over 50 billion useful events every month. While SendGrid data covers only abo...
Jul. 20, 2014 02:00 PM EDT Reads: 2,474
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