The Sponsored byCloudServiceProviderReportIssue #15 Jun/Jul11Covering: June / July 2011Next issue: May 2011 Executive brief More speculation emerged over a move by Amazon Web Services to establish on-the-ground cloud AMERICAS: US telcos’ enthusiastic1 EXECUTIVE infrastructure presence in Australia, plunge into the cloud computing BRIEF which would enable the US player to meet market continued, with: AT&T mooting demand for locally-based service provision, expansion of hybrid cloud services in3 SERVICE and add to growing competitive pressures the coming months, using infrastructure PROVIDERS in the market for more commoditised, strength as a key di erentiator; and one-size-ﬁts-all services. The Australian3 Americas acquisitive rival CenturyLink completing reported that AWS is “canvassing” the6 APAC the takeover of hosted infrastructure market for a data centre partner, with a13 EMEA player Savvis it announced in view to launching services in early-2012. April 2011. Communications and IT Meanwhile, Australian players continued20 INTERVIEW service provider 8x8 outlined an to bolster their own cloud businesses, “acceleration” of its cloud plans,20 Dave Jilk, with TPG Telecom and DWS Advanced announcing a new channel programme Standing Cloud Business Solutions making for hosted services and deployment of acquisitive moves, and BrightHost the Vblocks technology stacks of VCE.30 MARKETS expanding services into Hong Kong. Enterprise communications player & TRENDS [pp.9,10,30.] PAETEC Holding was also active, releasing30 Markets; a suite of virtual infrastructure propositions, NTT’s Dimension Data IT services Players shortly before being acquired by rival business continued to expand32 Trends telco Windstream Communications, which its cloud presence, fresh from its was already pushing into cloud services. recent buyout of international cloud35 INDEX [p.3-5,30.] service provider OpSource. DiData formed a partnership with Hong Kong ﬁxed-line APAC: Alliance-building activity operator Hutchison Global Communications between Chinese and outside to market its onecloud infrastructure-as- providers was again evident, a-service suite locally. [p.9.] with Japanese IT service provider Fujitsu revealing discussions over a International services group joint venture with leading ﬁxed-line player Wipro Technologies followed analysts China Telecom. Detail was scant, but the in ﬂagging the manufacturing move would raise questions over how it industry as fertile ground for ﬁts with China Telecom’s existing cloud enterprise cloud computing, citing activity, including an existing tie-up with “a lot of discussions with the business Taiwanese operator Chunghwa Telecom. heads in manufacturing companies” Fujitsu’s comment came as Chunghwa over the productivity implications of rival Far EasTone Telecom cloud applications and infrastructure. announced a push into China via a In its latest quarterly results, the provider’s partnership with hardware vendor Manufacturing & High-Tech business unit Quanta Computer. [pp.6,7.] said 30% of its order book has “come from cloud-related services”. [pp.11,12.]
Sponsored by The Cloud Service Provider Report Issue #15 Jun/Jul11 Service providersService providers AMERICAS New York Stock Exchange Technologies (NYSE Technologies),Americas the commercial technology division of exchange operator NYSE Euronext, unveiled a specialisedAT&T talks up hybrid cloud focus cloud-based solution for ﬁnancial traders. The EMC-Taking internal enterprise cloud to the masses and VMware-supportedJohn Stankey, Chief Executive and President of AT&T Business Solutions, Capital Markets Community Platform o eringthe US telco’s enterprise arm, used a recent Barclays Capital Global Communications, combines market data,Media, and Technology Conference to promote the company’s infrastructure strength market access, and secure ﬁnancial networks. It is intnededas a key enabler and di erentiator as it expands into the emerging hybrid cloud space. to address trading companies’ “unique concerns”, with regardStankey said the operator, which is in the midst of a high-proﬁle race with domestic to data governance, performance,arch-rival Verizon Communications to expand its cloud business (Cloud Service and security. NYSE TechnologiesProvider Report, passim), has positioned hybrid cloud (or, in his words, is positioning the service as more robust than public cloud,“virtual private cloud”) solutions as a key area of focus in the coming months. He while emphasising that it willcharacterised the services as taking the beneﬁts of internal enterprise solutions to enable “rapid provisioning of computing power anda much wider market — namely, companies that “don’t necessarily have the large market data”, and bescale or size” required to build their own private infrastructure services. “ultra-ﬂexible”, prospectively attracting trading start-ups.“ We believe we bring a di erential position in cloud. We think of it quite simply NYSE Technologies is initially o ering the service in the USA, as three distinct areas. There is the private [or ‘internal enterprise’] cloud that but is reportedly looking to launch very large companies will build, manage, and deploy on their own. There’s the similar propositions in other public cloud, [which o ers] very low-cost, commoditised, highly-available compute markets, including Brazil, Canada, and Japan. services that don’t necessarily have the reliability and latency characteristics for [Further reference: mission-critical applications. And, in the middle, there is the virtual private cloud NYSE Technologies introduces the world’s ﬁrst Capital Markets — [combining] the security, the reliability, the capabilities of the private cloud with the Community Platform availability of the public cloud. ” — Stankey. — NYSE, 1 June 2011; NYSE Technologies launches cloud platform — Financial Times, 1 June 2011] Regional US data centre operator Online Tech cited “mounting interest in private cloud hosting, managed cloud hosting, and disaster recovery” services as behind a recent decision to boost its sales and support headcount. The company, which is based out of Michigan and o ers co-location, disaster recovery, managed dedicated servers, and private cloud hosting services to the Mid-west enterprise market, claimed to have experienced “39% growth in the ﬁrst ﬁve months of 2011”. [Further reference: Interest in cloud hosting boosts Online Tech’s growth by 39% — Online Tech, 23 June 2011.]The Cloud Service Provider Report is produced by Market Mettle Ltd and sponsored by EMC. Information contained within The Cloud Service ProviderReport is believed to be accurate. However, no responsibility can be taken for this nor for any actions or decisions that may be based upon it. 3
The Cloud Sponsored byServiceProvider ReportIssue #15 Jun/Jul11Service providers Stankey went on to emphasise telcos’ ability to di erentiate their hybrid cloud services through their traditional strength in infrastructure — an argument much-repeated by operators, and one often countered by others who claim telcos’ legacy focus on ‘engineering’ could impair their agility in bringing cloud services to market (Cloud Service Provider Report, passim). “ [The virtual private cloud] is where we add value with the network. That is where we take our great assets in hosting, our great capabilities in end points and network, our proprietary technology on routing, and marry it together for a service o ering… ” “ Virtual solutions use more ‘intense network’. More intense network is a good thing for our business over time; it only makes us more relevant. We think cloud and virtualisation, and the network go together. They’re compatible and they work hand-in-hand… Many of the aspects of virtualisation on the more challenging applications that a customer wants to virtualise require high reliability and low latency. The end points of our network, and how we’ve engineered it, and… how we have capabilities to host and co-locate services makes us a natural ﬁt in that space. ” “ In addition, over the last two years you’ve heard me talk about investments we’ve been making in R&D for proprietary routing plane technology that sits over the top of our IP [Internet Protocol]/MPLS [Multiprotocol Label Switching] network. It allows for us to do more sophisticated and advanced routing capabilities, which are naturally married to the cloud. So, where services like DNS [Domain Name System] and route reﬂectors fall short in some instances, we have additional proprietary technology that we bring into the network that allows for a very dynamic reallocation of tra c and capabilities that makes our network even more relevant in the cloud space. ” — Stankey. Stankey’s comments regarding tighter integration of cloud and network services are already evidenced in AT&T’s cloud portfolio, with the telco adding closer virtual private network functionality to its ﬂagship Synaptic infrastructure-as-a-service o ering as part of a wider revamp in February 2011 (Cloud Service Provider Report, #12, and passim). Stankey suggested that further “virtual private cloud” solutions have been pencilled in for launch later in 2011. “ You’re going to see, mid-year, new product o erings coming out in the market that will begin to commercialise and o er through partner channels. And I think you’re going to see a very exciting story moving forward on this. ” — Stankey. [Further reference: AT&T Inc at Barclays Capital Global Communications, Media, and Technology Conference — ﬁnal — FD Wire, 25 May 2011.] The Cloud Service Provider Report is produced by Market Mettle Ltd and sponsored by EMC. Information contained within The Cloud Service Provider4 Report is believed to be accurate. However, no responsibility can be taken for this nor for any actions or decisions that may be based upon it.
Sponsored by The Cloud Service Provider Report Issue #15 Jun/Jul11 Service providersPAETEC ﬂags cloud expansion plansPAETEC Holding, a New York, US-based enterprise communications player,expanded its cloud computing business with the release of a suite of dedicated server,Hosted [Microsoft] Exchange, managed storage, and virtual server propositions.The o erings are targeted at “mid-market customers”, and will be supported by aparallel expansion of PAETEC’s infrastructure, through which it aims to add 13 newUS data centres to its existing seven facilities by the end of 2012.“ Looking at the products and services that were already available in the market, we saw very strong solutions for small business and start-ups, and increasing competition for the large enterprise, but very little that was appropriate for the needs of our mid-market customers. ” — John Chapman, Chief Marketing O cer of PAETEC.The move came shortly before PAETEC announced it is to be bought by rivaltelco Windstream Communications, which is itself pushing into cloud servicesfollowing its recent takeover of infrastructure-as-a-service player Hosted Solutions(Cloud Service Provider Report, #10 and #11).[Further reference: PAETEC launches powerful cloud computingportfolio and nationwide data center expansion — PAETEC, 24 May 2011;Windstream to acquire PAETEC — Windstream, 1 August 2011.]8x8 ups cloud presence with channel, VCE dealsUS IT and telecoms service provider 8x8 outlined an “acceleration” of recent expansionin the cloud market, with the formation of a new channel programme designedto push its hosted services, and a supporting technology partnership with theVirtual Computing Environment Company (VCE) formed by Cisco Systems and EMC.The distribution initiative, called the 8x8 Business Partner Program, will focuson signing up “agents, resellers, and traditional hardware VARs [value-addedresellers]” to market the company’s cloud service portfolio, which currently includesprivate cloud-based compute and hosted o erings, as well as voice and videocommunications services. The scheme will o er “one-time bounties on initial orders,monthly residual payments, and commission on equipment accompanying the sale”— incentives that 8x8 hopes will persuade VARs previously focused on sellinghardware-based solutions to expand marketing of services.The VCE deal, announced shortly after the programme’s launch, was presentedby 8x8 as a step designed to aid expansion of its service portfolio, enabling it tolaunch infrastructure-as-a-service (IaaS) applications across Vblock pre-calibratedtechnology stacks developed by the vendor. 8x8 claimed that adoption ofVblocks will be complementary to its recent acquisition of Zerigo, a providerof cloud service provisioning technology (Cloud Service Provider Report, #14),by facilitating “rapid and automatic deployment” of applications.The company, which has thus far primarily focused on small- and medium-size enterprises(SME), added that it intends to use the deal to expand its go-to-market focus on “largerenterprise and government customers”, mooting roll out of “tier-one business applications”.[Further reference: 8x8 announces new cloud-centric channel program— 8x8, 28 June 2011; 8x8 to deliver cloud services on VCE Vblock infrastructure— 8x8, 30 June 2011; 8x8, Inc. announces record ﬁrst-quarter ﬁscal 2012 revenue— 8x8, 20 July 2011.]The Cloud Service Provider Report is produced by Market Mettle Ltd and sponsored by EMC. Information contained within The Cloud Service ProviderReport is believed to be accurate. However, no responsibility can be taken for this nor for any actions or decisions that may be based upon it. 5
The Cloud Sponsored byServiceProvider ReportIssue #15 Jun/Jul11Service providersAPAC US data centre services provider APAC Telehouse said it is to open a cloud computing-focused data Fujitsu, China Telecom in cloud JV talks centre in Hong Kong during December 2011. The facility Japanese IT service provider Fujitsu continued to develop its Global enterprise — Telehouse’s 42nd — is said to be the ﬁrst of the company’s cloud computing ambitions, saying it is discussing a joint venture (JV) with facilities to concentrate solely China Telecom, the country’s largest ﬁxed-line provider and number-three mobile on cloud applications, and will player, which would enable the vendor to extend its on-demand application and target “increasing demand in the Asian market, including India, infrastructure services to the Chinese market for the ﬁrst time. from corporations moving their businesses’ IT needs to cloud Masami Yamamoto, President of Fujitsu, told Japan’s Nikkei newspaper that platforms”, said Noriyuki Kita, the companies are negotiating a tie-up with the aim of jointly introducing Executive Vice-President of Telehouse. The data centre will cloud computing services in China by end-2011. The thinking is to provide 36,000m2 of space and “expand [Fujitsu’s Chinese] business by combining Fujitsu’s expertise in the cloud will be managed by HKColo, a ﬁeld with China Telecom’s customer base”, the report added. data centre operator in which Telehouse’s parent company KDDI recently bought a 50% stake. While detail was scant, the talks come at a time when Fujitsu is in the midst of a [Further reference: project to expand international availability of its ﬂagship Global Cloud Platform o ering, Telehouse continues its which aims to provide multinational corporate customers with “uniﬁed” infrastructure-, global expansion into China’s South Coast platform-, and software-as-a-service applications and pricing across di erent markets. — Telehouse, 13 June 2011.] The company has so far rolled out Global Cloud Platform in data centres in Australia, Germany, Japan, Singapore, the UK, and the USA (Cloud Service Provider Report, #6-#8, #13, and #14); and China had been seen as a likely next target, with Fujitsu announcing plans to build new data centre facilities, housing 5,000 “cloud specialists”, in southern China during 2010 (Cloud Service Provider Report, #8). The move will also help Fujitsu meet targets it has publicly laid out to boost revenue generation from both cloud computing services, and its Chinese business, post-downturn — it has previously said it is aiming to boost cloud computing revenue to JP ¥1.3trn ($16.8bn)–JP ¥1.5trn in FY15–16 (1 April 2015–31 March 2016), more than a quarter of its total Group sales figure (JP ¥4.5trn) in FY10–11; and Yamamoto said the company is aiming to double its JP ¥110bn in annual revenue from China in a shorter timeframe. “ The Chinese market is just a fraction of our worldwide business. Our o cial target is to double that in three years. However, personally, I believe it is a conservative target. ” — Yamamoto. An interesting question around any China Telecom-Fujitsu partnership would how it would ﬁt around China Telecom’s existing cloud computing activity — the telco has been developing a domestic cloud services portfolio for some time, via its nebula programme, and already has go-to-market partnerships in place with SAP and Taiwanese telco Chunghwa Telecom, with the latter prominent in seeking to push cloud product exports from Taiwan into China (Cloud Service Provider Report, #14 and passim). Outside of its domestic market, China Telecom has laid out plans to become a top-three player in Asia-Paciﬁc’s data centre services market, having, in September 2010, launched new data centres in Hong Kong and Singapore. The Cloud Service Provider Report is produced by Market Mettle Ltd and sponsored by EMC. Information contained within The Cloud Service Provider6 Report is believed to be accurate. However, no responsibility can be taken for this nor for any actions or decisions that may be based upon it.
Sponsored by The Cloud Service Provider Report Issue #15 Jun/Jul11 Service providersNEC, IBM, Fujitsu go head-to-head APACA tie-up would also pitch Fujitsu against several existing alliances formed by Japanese service provider Internet Initiative Japanregional and international providers seeking to expand cloud services into China, (IIJ) released an applicationincluding key rivals IBM and NEC Corporation. programming interface (API) to allow customers to integrateNEC formed a cloud-focused joint venture with Chinese service provider Neusoft in the GIO storage-as-a-service o ering it launched in 2010August 2010, and IBM is backing an initiative to building a huge, 6,200,000ft² cloud (Cloud Service Provider Report,data centre and o ce complex in the northern Hebei Province, due for completion #9 and #14) with their ownin 2016 (Cloud Service Provider Report, #9 and passim). applications. The API for the HTTPS/REST interface allowsAsian wholesale telco Pacnet also recently announced plans to develop an customers to connect to the GIO service’s infrastructure and store“international cloud computing hub” in the south-western region of Chongqing large data ﬁles, or for backup.(Cloud Service Provider Report, #13). The service comes with a Java software development kit[Further reference: Fujitsu looks to double Chinese sales — Nikkei, 30 June 2011; to aid development of applications that are compatibleFujitsu looks to Chinese market — China Daily, 7 July 2011.] with the o ering, and claims to allow users to change storageFET, Quanta team up to target China volumes “instantaneously”. [Further reference: IIJ to launch IIJ GIO storageTaiwanese operator Far EasTone Telecom (FET) and hardware vendor service FV/S with REST APIQuanta Computer said they are to collaborate on cloud computing services for — IIJ, 1 June 2011.]smaller enterprises, in both mainland China and Taiwan.Targeting ﬁrms with fewer than 100 sta , the companies will reportedly initiallyfocus on compute services, before “tapping [the] cloud platform and cloudsoftware markets”. FET will provide the communications element and Quanta theIT side, the companies said. They are also reported to be hopeful that other hardwareand software suppliers will join the partnership.FET is a member of Taiwan’s Far EasTone Group, which is a liated toChina Mobile, the country’s largest telecoms player, but there was no mention ofany involvement by the latter in the partnership.Chunghwa Telecom, a domestic rival of FET, has also been actively expanding itscloud computing reach into China, recently forming an alliance with China Mobilecompetitor China Telecom (Cloud Service Provider Report, #14).[Further reference: Far EasTone, Quanta partner on enterprisecloud computing market — Taiwan Economic News, 4 July 2011.]The Cloud Service Provider Report is produced by Market Mettle Ltd and sponsored by EMC. Information contained within The Cloud Service ProviderReport is believed to be accurate. However, no responsibility can be taken for this nor for any actions or decisions that may be based upon it. 7
evolutionor revolutionTechnology and business models are changing…Cloud Service Provider Report is essential monthly reading, providing the full industry pictureto SPs competing in this fast-growing, rapidly evolving, and strategic marketSign up online now Visit www.cloudserviceprovider.comto receive your personal copy every month Courtesy of sponsor EMCThe CloudService Provider Report Published email@example.com+44 (0)20-7183-0111 Sponsored by
Sponsored by The Cloud Service Provider Report Issue #15 Jun/Jul11 Service providersBrightHost taps Equinix platform for Asia expansion APAC Japanese IT service providerAustralian hosted service provider BrightHost partnered with US data centre NEC formed a partnership with Amata Corporation, a Thaioperator Equinix, to enable expansion of cloud computing o erings to the latter’s property company, to provideinfrastructure platform in Hong Kong. cloud services to companies located in the latter’sThe move will see Brighthost use the provider’s Platform Equinix o ering, based in Amata Industrial Estate — thethe ﬁrm’s Hong Kong (HK1) International Business Exchange data centre, to help “largest” such development in the country, according to NEC.“meet its blue-chip customers’ requirement for a presence in Asia”. The services, which were scheduled to go live in July 2011,“ Our goal was to activate a world-class cloud site within two months, and Equinix will include cloud-based has been a key partner in helping us meet our commercial, technical, and customer applications for conferencing and human resources management, service requirements. ” — Michael Richardson, Manager, BrightHost. and in future be extended to infrastructure-as-a-service,The agreement represents a ﬁrst move outside of Australia for BrightHost, which is platform-as-a-service, and virtuala subsidiary of marketing group STW Communications, and o ers: a VMware-based desktop tools. [Further reference:cloud infrastructure service; an Akamai-enabled content delivery network proposition; NEC enters new SaaSand, other hosted and professional services. Going forward, the company has said it is cloud services agreementplanning to open similar facilities in Indonesia, Malaysia, and Singapore. with the largest industrial estate in Thailand — NEC, 11 July 2011.]The deal comes with Equinix seeking to position itself as the “arms dealer” ofthe cloud industry, o ering hosted infrastructure and interconnection capacity toservice providers that are expanding into the cloud space, or into new markets(Cloud Service Provider Report, #13, and see separate report).[Further reference: BrightHost leverages Platform Equinix; expands cloudsolutions to Hong Kong — Equinix, 30 May 2011; New cloud contender BrightHostunveils Asia expansion plan — Asia Cloud Forum, 1 June 2011.]Dimension Data, Hutchison ink HK cloud allianceLocal ﬁxed-line operator Hutchison Global Communications (HGC) formed apartnership with Dimension Data (DiData), the IT services business of Japanese telcoNTT, to market cloud-based infrastructure services to enterprises in Hong Kong.Under the Memorandum of Understanding, HGC will market Dimension Data’sonecloud cloud service suite to local businesses, using its data centres andﬁbre backbone. Applications to be provided will include: “secure enterprise cloudhosting services [including internal enterprise and public cloud-based services],[and] business continuity and disaster recovery services”.The companies have plans to collaborate on software-as-a-service (SaaS) solutions,including: “enterprise-class email”; Microsoft collaboration applications; and other SaaStools for both small- and medium-size enterprises and “speciﬁc vertical industries”. HGCalready has a SaaS partnership in place with Microsoft (Cloud Service Provider Report, #10).The deal gives DiData a third Asia-Paciﬁc operator partner on onecloud — it formedtie-ups on the o ering with Indian state telco Bharat Sanchar Nigam Ltd, and Filipinoincumbent Philippine Long Distance Telephone Co. (PLDT) in 2010 (Cloud Service ProviderReport, #9 and #13). DiData parent NTT indirectly holds a 21% stake in PLDT.[Further reference: Dimension Data partners Hutchison Global Communications too er cloud and hosted managed services — Dimension Data, 22 July 2011.]The Cloud Service Provider Report is produced by Market Mettle Ltd and sponsored by EMC. Information contained within The Cloud Service ProviderReport is believed to be accurate. However, no responsibility can be taken for this nor for any actions or decisions that may be based upon it. 9
The Cloud Sponsored byServiceProvider ReportIssue #15 Jun/Jul11Service providersAPAC AWS preps Australian presence — report Australian IT service provider DWS Advanced Amazon Web Services (AWS) is reportedly set to become the latest international Business Solutions initiated cloud player to enable local service provision in Australia, extending its on-the-ground a new, cloud-focused “specialist business unit”, presence in Asia-Paciﬁc beyond recently installed facilities in Japan and Singapore. called DWS Solution Centre, after closing an AU $300,000 The Australian claimed that the provider is “slated to unveil” infrastructure in ($325,000) acquisition of Sydney by early-2012, having begun “canvassing” the domestic market. The report ﬁnancial software provider Taten. DWS said it sees Taten’s suggested AWS will seek a third-party data centre provider to enable its local products as applicable presence, with candidates said to include US data centre service provider Equinix, “across other industries including which has a cloud infrastructure presence in Sydney, and has been heavily pushing health, government, utilities, and telecommunications”. “With a its Platform Equinix indirect infrastructure o ering for international cloud players strong national client base, DWS (Cloud Service Provider Report, #11, #13, and see separate report). is well placed to bring these solutions to new markets and An AWS spokesperson declined to comment on the claim, calling it “speculation”, new clients”, said Danny Wallis, the company’s Chief Executive. but added that, “over time, we plan to have more data centres in different [Further reference: countries and regions around the world”. DWS targets cloud after opportunistic buyout Installation of Australian facilities would create a sixth “operating region” for AWS, beyond its — Australian Financial two existing hubs in Asia-Paciﬁc (in Tokyo, opened during March 2011, and Singapore Review, 28 June 2011; Acquisition of Taten in March 2010), and previously installed infrastructure centres in the USA (Northern California — DWS, 1 July 2011.] and Northern Virginia) and Europe (run from Ireland). The company recently hinted at plans to roll out data centre infrastructure in India (Cloud Service Provider Report, #14). “One-cloud-ﬁts-all” competition to increase Expansion of AWS’s ‘commodity’ cloud o erings into Australia will add to competitive pressures in what is already seen as one of the most developed markets for cloud services internationally, and likely see providers step up e orts to di erentiate their o erings. The move would also bring AWS into closer competition with several domestic and foreign service providers that have been marketing cloud services in Australia with emphasis on talking down overseas-based rivals. Currently, AWS serves Australian clients primarily from its Singapore hub, but the market (as well as neighbouring countries) is seen as especially receptive to ‘local’ provision, due to regulatory and technical factors; and the provider had widely been expected to ultimately develop a presence in the country (Cloud Service Provider Report, passim). Several international players have already performed similar moves over the last year, including Equinix itself and Japanese IT service provider Fujitsu, as part of its ongoing Global Cloud Platform expansion (Cloud Service Provider Report, passim, and see separate report). Verizon Business recently outlined plans to extend its ﬂagship Computing-as-a-Service cloud suite to a data centre in the capital, Canberra (Cloud Service Provider Report, #10); and The Australian hinted at further new entrances, saying AWS’s move comes with “other US rivals eyeing the cloud computing market in Australia”. Local players that have been particularly active in cloud services include domestic telcos, Macquarie Telecom, Optus (part of Singapore Telecommunications), and Telstra, as well as IT players like Enspire and Interactive (Cloud Service Provider Report, passim). [Further reference: Amazon Web Services to open local data centre — The Australian, 12 July 2011.] The Cloud Service Provider Report is produced by Market Mettle Ltd and sponsored by EMC. Information contained within The Cloud Service Provider10 Report is believed to be accurate. However, no responsibility can be taken for this nor for any actions or decisions that may be based upon it.
Sponsored by The Cloud Service Provider Report Issue #15 Jun/Jul11 Service providersWipro tips manufacturing for cloud growth APAC New Zealand-based ITIndian IT services and consulting group Wipro Technologies continued to ﬂag the service provider Softsource opened an NZ $10m ($9m)manufacturing industry as o ering particularly strong traction for infrastructure- data centre in Albany, onand software-as-a-service (IaaS/SaaS) applications, saying the company’s the country’s North Island,Manufacturing & High-Tech business unit saw 30% of its order book “come from to support an expansion drive around infrastructure-as-cloud-related services” in Q1 FY11–12 (April 2011–June 2011). a-service. The company is providing “pay-as-you-go”Speaking on the company’s earnings conference call for the quarter, N. S. Bala, compute and storage servicesSenior Vice-President of the unit, said uptake is being driven by a desire for greater from the facility, which uses Hewlett-Packard technology.productivity and ﬂexibility, rather than cost cutting, claiming “manufacturing companies Pablo Garcia-Curtis,want to get into an asset-light mode as they come out of the recession”. General Manager of Softsource, said customers are able to“ Clearly, [manufacturers] want to build a capacity that… will help them manage through provision or de-provision capacity from the centre within the cycles of their business. And that’s actually given us a lot of discussions with the “15–30 minutes”. business heads in manufacturing companies to provide both an application and an [Further reference: infrastructure play that can be o ered on the cloud. That’s one of the trends that’s Cloud computing at $10m centre — The Press, 22 June 2011; happening, and that’s really resulted in some wins for us this quarter. ” — Bala. Softsource eyes silver lining in cloud computingBala went on to say that Wipro has been developing customised, cloud-based — Stu .co.nz, 22 June 2011.]solutions for manufacturing clients, although he did not go into more detail.“ Many of the o erings that we have put out there along with the customers are new — they have not been tried before. ” — Bala.Several commentators have predicted that manufacturers will be among theenterprises that are the quickest to embrace cloud services, with particularlyhigh demand expected from Asia-Paciﬁc companies as they shift towards“knowledge-intensive manufacturing”. IDC recently cited cloud computingas a technology that Asian manufacturers see as o ering potential to“improve productivity, e ciency, and top-line growth”, echoing an earlier report byFrost & Sullivan (Cloud Service Provider Report, #8 and #10).Wipro, which is itself a large maker of IT and other hardware, cites the manufacturingmarket as its third-largest vertical, saying it produced 15% of its IT services revenuein FY10–11. Its two largest categories — ﬁnancial services (27%) and ‘retail andtransportation’ (15%) — also represent areas where Wipro has been noticeablyactive in pushing cloud services, releasing customised SaaS applications forretailers in 2010, and more recently highlighting large ﬁnancial services playersas having “moved beyond thinking and planning, into at least taking some action”with regard to cloud adoption (Cloud Service Provider Report, #4 and #11).The Cloud Service Provider Report is produced by Market Mettle Ltd and sponsored by EMC. Information contained within The Cloud Service ProviderReport is believed to be accurate. However, no responsibility can be taken for this nor for any actions or decisions that may be based upon it. 11
The Cloud Sponsored byServiceProvider ReportIssue #15 Jun/Jul11Service providersAPAC Wipro to up cloud product development, seeks di erentiation via IP Indian data centre Wipro is one of several global IT services players to have actively expanded their service provider cloud computing portfolios over the last year or more, amid expectations that Sify Technologies tied with network protection on-demand IT services could have a signiﬁcant disruptive e ect on their traditional specialist Fortinet on roll businesses (Cloud Service Provider Report, passim). The company announced a out of two cloud-based security services. Under the SaaS partnership with Microsoft in 2010, and, going forward, is reportedly planning deal, Sify deployed Fortinet’s to initiate a channel programme to increase distribution of its cloud services in 2012 FortiGate “virtualised network (Cloud Service Provider Report, #5 and #13). security services” to provide: an as-a-service “security layer” for its infrastructure-as-a-service Speaking on the Q1 FY11–12 call, T. K. Kurien, Chief Executive of Wipro’s (IaaS) customers, called IT Business, said the company is increasingly keen to move beyond On-Demand Security; and IT ‘service provision’ and develop its own intellectual property (IP) in the another cloud security offering called Clean Connect, which cloud space, citing the need to retain “di erentiation upstream”. offers on-demand “unified threat management” for Sify’s “ When you look at cloud, and if you look at analytics… unless you build intellectual internet access services. property of some sort — maybe products, maybe reproducible frameworks, The move further extends a cloud software and IaaS maybe patents where you can keep people out or where you can grab advantage portfolio that Sify has been — those areas will become very, very critical because, in a cloud environment, deploying in India since if you don’t own the IP layer, you pretty much don’t own anything… ” early-2010, and recently teamed with Saudi Telecom to market internationally “ So, that’s clearly the direction which we are taking. But it’s a hard one to do for an (Cloud Service Provider Report, IT services company. But it’s something that’s absolutely important for us to do #5, #7, #12, and #13). because we’re not creating the death of outsourcing; but we think outsourcing the [Further reference: Sify Technologies partners with way we’ve seen it in the past may not exist, and the outsourcing that we would see in Fortinet to roll out virtualised the future will be driven around analytics and the big themes that we talked about. ” network security services on its entire range of IaaS offerings — Kurien. — Fortinet, 14 June 2011.] [Further reference: Wipro FY10–11 Annual Report; Event brief of Q1 2012 Wipro Ltd earnings conference call (US and European analysts) — FD Wire, 20 July 2011.] Netmagic updates IaaS o erings Indian hosted service provider Netmagic Solutions added to its infrastructure-as- a-service (IaaS) portfolio with three new cloud services, targeting “large, medium, and small enterprises across India”. The o erings comprise: SimpliCloud, a public cloud-based compute and storage proposition. The service is charged by the month or hour, either on a contract or prepaid basis. HybriCloud, which adds virtual private network connectivity, and the option to combine with in-house hardware, to SimpliCloud. Private Cloud, an internal (enterprise) o ering on whose functionality Netmagic did not expand. NetMagic operates seven data centres in India, o ering services based on Cisco’s Uniﬁed Computing System and VMware’s vSphere technology. Cisco and Nokia Growth Partners are among its investors (Cloud Service Provider Report, #10 and #13). [Further reference: Indian IaaS leader, Netmagic, adds clout to cloud launches enterprise-grade cloud services — SimpliCloud and HybriCloud — Netmagic, 27 July 2011.] The Cloud Service Provider Report is produced by Market Mettle Ltd and sponsored by EMC. Information contained within The Cloud Service Provider12 Report is believed to be accurate. However, no responsibility can be taken for this nor for any actions or decisions that may be based upon it.
Sponsored by The Cloud Service Provider Report Issue #15 Jun/Jul11 Service providersEMEA EMEA TRusted Ecosystem for Standardised &NaviSite expands cloud infrastructure to UK Open Cloud-based Resources (TRESOR), a consortiumHosted service provider NaviSite became the latest US player to bring backed by Deutsche Telekom’s T-Systems enterprise arm,cloud computing infrastructure to Europe, with the opening of a node in Woking, UK. won an award from the German Federal Ministry ofThe move will see NaviSite provide enterprises in the UK and Europe with local delivery Economics and Technology asof its Managed Cloud Services (MCS) suite — a family of usage-billed, hosted services part of a competition around cloud computing applicationbased on its ﬂagship NaviCloud infrastructure (Cloud Service Provider Report, passim). development for small- andIt creates the ﬁrst on-the-ground presence for NaviSite’s cloud business in Europe. medium-size enterprises and the public sector. The group, whichNaviSite pitched the move as a means to help European customers focuses on the exchange of patient information in healthcare,“comply with local regulations”, while “eliminating network performance issues caused was one of twelve winners ofby long-distance broadband connections to o shore data centres” — pressures the Sicheres cloud computingthat have recently seen several US cloud providers locate infrastructure in Europe für mittelstand und ö entlichen sektor — Trusted Cloud contest(and other regions). Key rivals Amazon Web Services, Rackspace, and Savvis have all — and will receive €4.5mdeployed regional infrastructure in either Ireland or the UK over the last year or more ($6.5m) in ﬁnancial backing over three years. The TRESOR(Cloud Service Provider Report, #10, and passim). project aims to develop a “fast and simple means of exchangingThe expansion follows NaviSite’s April 2011 acquisition by US cable television data for doctors, clinics, andand broadband operator Time Warner Cable (TWC) — one of a string of recent health insurance funds thatcloud purchases by US telecoms players, including: CenturyLink’s acquisition complies with all the applicable laws, and data privacy andof Savvis; Verizon Communications’ takeover of Terremark Worldwide; security regulations, as welland Windstream Communications’ buy out of Hosted Solutions (Cloud as the respective policies and regulations of the individualService Provider Report, #10–#14). healthcare institutions”. [Further reference:TWC has since mooted plans to expand NaviSite into the small- and medium-size T-Systems and partnersenterprise market (Cloud Service Provider Report, #11), although the UK move win cloud competition — T-Systems, 28 June 2011.]continued to bill the company’s services as “enterprise-class”.[Further reference: NaviSite launches new UK cloud node — NaviSite, 20 June 2011.] Hrvatski Telekom (HT), the Deutsche Telekom-controlled Croatian telco, commercially launched tCloud, a suite of infrastructure- and software-as- a-service tools for small business customers, following a “test phase” announced in April 2011 (Cloud Service Provider Report, #14). The service, which is priced from at HRK 5 ($0.95)-per-day, o ers data storage space and a family of business software applications from Google, Microsoft, and Mozilla. [Further reference: tCloud — inovacija, sigurnost i jednostavnost u službi poslovnog uspjeha — HT, 29 June 2011.]The Cloud Service Provider Report is produced by Market Mettle Ltd and sponsored by EMC. Information contained within The Cloud Service ProviderReport is believed to be accurate. However, no responsibility can be taken for this nor for any actions or decisions that may be based upon it. 13
Sponsored by The Cloud Service Provider Report Issue #15 Jun/Jul11 Service providersGTS debuts in IaaS space with virtual hosting suite EMEA KPN, the Netherlands’Regional information and communications technology player GTS Central Europe incumbent telco, introduced its SMEs Workplace cloudﬂagged its entrance into the infrastructure-as-a-service (IaaS) market with the release infrastructure and applicationof a new product group, called GTS Virtual Server Hosting. suite for small- and medium-size enterprises (SME). The serviceThe suite, based on a recent deployment of Cisco Systems’ Uniﬁed Computing System is designed for ﬁrms withserver platform by GTS, includes two private cloud-based IaaS o erings: a lower end, one–150 workstations, and incorporates on-demand datao -the-shelf proposition for smaller businesses, called Virtual Private Server (VPS); backup, o ce, and web securityand a more malleable Virtual Hosting Environment solution for “large enterprises and applications. Three versions of the service are availablepublic sector organisations”. The latter enables customers to provision multiple VPSs, — a basic option with softwaredepending on requirements, as well as o ering additional services, including a “dedicated” held on the o ce intranet; asolution to add greater separation between users’ data and that of other customers. fully managed solution with software and data stored in KPN data centres; and a third, hybridGTS said it will offer the services to clients in its five primary markets in Central o ering, which will not becomeand Eastern Europe (CEE) — Czech Republic, Hungary, Poland, Romania, and available until autumn 2011.Slovakia — and is positioning them as particularly suitable for hosting of websites [Further reference: KPN will start selling completeand web-based enterprise applications. IT workplaces through the cloud — KPN, 31 May 2011.]The move comes with GTS having in 2010 laid out a strategy to strengthen its regionaldata centre footprint and service portfolio, via consolidation opportunities and an expansion Ireland-based managedof its existing facilities (14 centres across the ﬁve markets mentioned above). It subsequently IT service provider Hibernia Evrosacquired Hungarian data centre service provider Interware, and Czech provider Technology Group launchedSitel Data Center, along with the latter’s purported “largest peering point in the CEE region”. an infrastructure-as- a-service subsidiary called[Further reference: GTS enhances server o erings with Virtual Hosting Digital Planet, o ering public and private cloud o erings.— GTS, 14 June 2011; GTS CE deploys Cisco’s new server platform “Using cloud computing, we— Computer Business Review, 23 June 2011.] are providing server capacity on-demand…The cloud has been hugely over complicated. Too many vendors have jumped on the bandwagon and are talking about cloud o erings they don’t have. Cloud computing is simply an alternative way of consuming your computing requirements”, said Brian Larkin, Operations Director at Digital Planet. [Further reference: Tech ﬁrm open a cloud after E1.6m funds — Business World, 2 June 2011.]The Cloud Service Provider Report is produced by Market Mettle Ltd and sponsored by EMC. Information contained within The Cloud Service ProviderReport is believed to be accurate. However, no responsibility can be taken for this nor for any actions or decisions that may be based upon it. 15