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  • 1. Sponsored byThe CloudService Provider ReportIssue #15 · June / July 2011Published by Market Mettle
  • 2. THE JOURNEY TO THEPRIVATE CLOUDSTARTS NOWEMC2, EMC, and where information lives are registered trademarks or trademarks of EMC Corporation in the United States and other countries.© Copyright 2010 EMC Corporation. All rights reserved. 2124
  • 3. 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.]
  • 4. The Cloud Sponsored byServiceProvider ReportIssue #15 Jun/Jul11The Cloud Service Provider Reportis produced monthly by Market Mettle Ltd EMEA: USA hosted service provider INTERVIEW: Cloud Serviceand sponsored by EMC. NaviSite followed rivals in Provider Report spoke to bringing cloud computing Dave Jilk, Chief Executive of infrastructure to Europe, installing US platform- and software-as- a node in the UK to enable regional a-service (PaaS/SaaS) specialistwww.marketmettle.com delivery of its Managed Cloud Services Standing Cloud, about prospectsTel +44 (0)20-7183-0111Email info@marketmettle.com suite, and address regulatory concerns for expansion into the ‘cloudMail 34 Buckingham Palace Road, Suite 53,London SW1W 0RH, UK associated with US-based provision. application layer’ by infrastructureFax +44 (0)20-3137-1182 [p.13.] providers, as desire for di erentiationManaging Editor Richard AgnewProduction Samritee Kumari and value-add increases, andDirector of Research Alex BirkheadClient Director Tim Lamb Mike Norris, Chief Executive of acceptance of PaaS o erings outsideIssue image European IT service provider of the services’ traditional base ofAmmolite© Elenathewise / iStockphoto Computacenter, rejected the idea “informal buyers”. [pp.20-28.]Information contained within the of public cloud services achievingThe Cloud Service Provider Reportnewsletter is believed to be accurate. significant, near-term impact in MARKETS / TRENDS:However, no responsibility can be takenfor this nor for any actions or decisions the large corporate market, saying PaaS start-up CloudBeesthat may be based upon it. there are “too many hurdles” for them and cloud test/dev specialist to represent a threat to the company’s CloudShare were among players enterprise business — namely: to announce new funding, “security, Patriot Act issues, [and] as investment activity continued to just reliability”. Norris’s comments flourish across the cloud computing came as IDC predicted significant value chain. Meanwhile, UK telco growth for public cloud services BT cited backhaul network over the next five years, but did capacity as the “biggest” not put a timeframe on when they inhibitor to development of could reach the maturity required by the mobile cloud market. large companies. [p.13,32.] [pp.30,31,33.] Portugal Telecom and Telecom Italia were among European telcos to report cloud-related activity — the former revealing receipt of European Investment Bank financing to strengthen its cloud computing infrastructure and service portfolio; and the latter introducing a virtual desktop infrastructure proposition, as part of its expanding Nuvola Italiana service suite. [p.17.] The Cloud Service Provider Report is produced by Market Mettle Ltd and sponsored by EMC. Information contained within The Cloud Service Provider2 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.
  • 5. 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
  • 6. 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.
  • 7. 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
  • 8. 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.
  • 9. 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
  • 10. 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 bywww.cloudserviceprovider.cominfo@marketmettle.com+44 (0)20-7183-0111 Sponsored by
  • 11. 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
  • 12. 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.
  • 13. 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
  • 14. 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.
  • 15. 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
  • 16. EMC: #1 IN STORAGE FORVIRTUALIZATIONSource: Enterprise Strategy Group (ESG) Data Center Spending Intentions SurveyEMC2, EMC, the EMC logo and where information lives are registered trademarks or trademarks of EMC Corporation in the United States and other countries.© Copyright 2010 EMC Corporation. All rights reserved. 2128
  • 17. 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
  • 18. The Cloud Sponsored byServiceProvider ReportIssue #15 Jun/Jul11Service providersEMEA Computacenter boss dismissive of public cloud threat UK infrastructure-as-a-service (IaaS) provider Flexiant Mike Norris, Chief Executive of European IT service provider Computacenter, highlighted involvement in played down the prospect of public cloud adoption and/or disruption in the a UK pilot project that is experimenting with cloud large corporate market, telling financial analysts that he does not expect those computing to speed up access services to impact the company “in the next 18 months in any material fashion”. to patients’ medical records. The project, which went live Asked on a July 2011 trading update conference call how he sees cloud computing in July 2011, uses simulated patient records, and is being “changing your business”, Norris replied that there are “too many hurdles” carried out at the Chelsea and for public cloud o erings to represent a threat in the enterprise sector. Westminster Hospital in London, with participation “ If there is a major shift very quickly to public clouds in the large corporate client by the Centre for Distributed Computing, base — remembering we rarely deal with people sub-1,000 [seats] — then that Networks and Security at would not be good. I just don’t… believe that’s going to happen to a large extent Edinburgh Napier University. very quickly…We think there’s too many hurdles in security, Patriot Act issues, [and] [Further reference: Flexiant providing cloud just reliability. ” — Norris. platform for e-health pilot — Flexiant, 20 June 2011; Norris did not indicate any plans for Computacenter itself to o er public cloud Healthcare cloud services, saying it plans to concentrate on private cloud demand. computing pilot launched — Napier University, “ We are suppliers… on a private cloud basis, [and], as things go… I don’t think it’s 29 June 2011.] going to [a ect our approach] very much at all. We will run private clouds for people. We will install private clouds for people, and — whether it be client server-type computing or cloud-based computing — we will look after devices that attach. We will look after the servers that host those — whether they be on our sites or customer sites, whether they be shared, or whether they be dedicated. ” — Norris. [Further reference: Computacenter plc pre-close trading statement conference call — final — FD Wire, 12 July 2011.] The Cloud Service Provider Report is produced by Market Mettle Ltd and sponsored by EMC. Information contained within The Cloud Service Provider16 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.
  • 19. Sponsored by The Cloud Service Provider Report Issue #15 Jun/Jul11 Service providersPT preps €350m cloud investment — reports EMEA France Télécom (FT)-controlledPortugal Telecom (PT), the country’s incumbent telco, is reported to have applied Polish incumbent Telekomunikacja Polska (TP)for €150m ($215m) in financing from the European Investment Bank (EIB) to fund invested in Cisco Systems’expansion of its cloud computing infrastructure and service portfolio. Carrier Ethernet solutions to “provide the networkThe financing will reportedly support a larger, €350m investment plan that the infrastructure foundation foroperator has laid out to boost capacity and innovation around cloud services, the Group to deliver new revenue opportunities fromalthough further details have yet to emerge. cloud computing, video, and mobile services”. The newlyPT’s activity in cloud computing has increased in recent months, including via deployed infrastructure willan agreement to resell Microsoft’s O ce 365 software-as-a-service family, and “provide the network foundation” for a “new array” of o erings inpartnership with Cisco Systems to roll out “virtual servers, unified communications-as- those areas, said Surya Panditi,a-service, and virtual desktop” o erings based on the vendor’s Unified Service Delivery Senior Vice-President and General Manager ofdata centre and network architecture (Cloud Service Provider Report, #10). Core Routing Group at Cisco. FT has been developingIn May 2011, Zeinal Bava, Chief Executive of PT, claimed to be seeing “very good cloud infrastructure anddemand” for cloud services in Portugal, but added that “this is an area of business that services through enterprisewill require some education on the part of PT to the market so that people understand arm Orange Business Services, including via itsthe full benefits of actually doing cloud computing”. “We ourselves at Portugal Telecom Flexible 4 Business-brandedexpect to be one of the early adopters of cloud computing and use ourselves as a venture, announced with the Cisco Systems- andgood example as to how we can use these new technologies to reduce costs”. EMC-backed Virtual Computing Environment Company in[Further reference: Q1 2011 Portugal Telecom earnings conference call — final — FD Wire, September 2010 (Cloud26 May 2011; Portugal Telecom plans investment in cloud computing — Datamonitor, Service Provider Report, #10). [Further reference:1 June 2011; Microsoft launches O ce 365 globally — Microsoft, 28 June 2011.] Polish Telecom boosts network with Cisco CRS-3 andTI adds VDI service to Nuvola Italiana family Cisco ASR 9000 series routers — Cisco, 14 July 2011.]Italian incumbent telco Telecom Italia (TI) continued recent expansion of itsNuvola Italiana (Italian Cloud) portfolio of cloud computing services by introducing Osiatis France, part of Belgian IT services group Osiatis,a virtual desktop infrastructure (VDI) proposition. formally unveiled a suite of infrastructure-as-a-serviceCalled Nuvola IT Virtual Desktop (Cloud IT Virtual Desktop), the o ering is said to (IaaS) products under thebe targeted at medium and large enterprises, and claims to allow a “high degree of brand Osiatis Cloud Center, as mooted earlier in 2011customisation”, while “ensuring high speed and ease of installation”. (Cloud Service Provider Report, #12). The o eringsThe launch comes with TI having positioned cloud computing, alongside fixed-mobile are based on architectureconvergence, mobile broadband, and unified communications, as one of the main enabled by Hewlett-Packard (HP) and Microsoft, andfacets of its strategic plan for the period to end-FY13 (January 2013–December 2013). include an on-demand service that can be accessed viaIt follows shortly after TI’s release of an on-demand storage service for business virtual private networks andusers, called Nuvola IT Data Space (Cloud Service Provider Report, #9 and #13), dedicated links. Osiatis is also o ering a “migrationand more recent formation of an enterprise software-as-a-service partnership service” for both infrastructurebetween the operator and SAP, under the banner Fast Start. and applications, called Dynamic Datacentre to be[Further reference: Nuvola IT Virtual Desktop: la nuova soluzione della Nuvola Italiana Cloud Ready (DDCR), and says— Digital.it, 19 May 2011; Telecom Italia presenta Nuvola IT Virtual Desktop it plans to expand into desktop- and software-as-a-service— Digital.it, 20 May 2011; Fast Start nella Nuvola Italiana — TI, 21 June 2011.] provision in future. [Further reference: L’o re IaaS d’Osiatis est opérationnelle — Osiatis, 28 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. 17
  • 20. The Cloud Sponsored byServiceProvider ReportIssue #15 Jun/Jul11Service providersEMEA Atos Origin adds cloud test/dev o ering German IT service provider dacoma partnered with French IT service provider Atos Origin followed up recently stated cloud computing US-based business resilience expansion plans (Cloud Service Provider Report, #11) by releasing a “pay-per-use” technology provider Datacastle to o er “comprehensive” IT application testing and development (test/dev) tool. cloud-based data backup and security services to the The o ering was designed by Atos Origin and is based on IBM’s Rational Jazz toolset former’s customer base. The for collaborative software, and can purportedly be used either alone or in conjunction companies emphasised that the move will see dacoma with other services from its Test & Acceptance Management Service Catalogue. host Datacastle ‘vaults’ in its Atos Origin says it is targeted at “clients in all industries”. data centre, and that data “will not leave Germany”. Test/dev is often cited as one of the early drivers of cloud service use within “According to Germany’s Federal Data Protection Act enterprises, and the provider stressed it had “identified testing services as one of (Bundesdatebschutzgesetz) the first and fastest growing areas”. BDSG, each business partner needs to be informed in case The service is the first cloud o ering to be launched by Atos Origin since announcing its of data breach. Therefore, it is very important to ensure the now-completed acquisition of Siemens’ IT services arm Siemens Information Solutions data will not be compromised”, — a deal Chief Executive Thierry Breton trumpeted as an opportunity for the provider to said Jan Heumuller, become the “European leader in cloud computing”, and “maybe the Google of tomorrow”. Managing Director at dacoma. In January 2011, Datacastle signed [Further reference: Atos Origin to o er IT testing services in the cloud a related deal with dacoma distribution partner Misco (Cloud — Atos Origin, 7 June 2011; Atos and Siemens have finalised the acquisition by Service Provider Report, #12). Atos of Siemens IT Solutions and Services — Atos Origin, 1 July 2011.] [Further reference: Datacastle partners with dacoma in Germany to provide cloud-based backup and data protection — Datacastle, 15 June 2011.] The Cloud Service Provider Report is produced by Market Mettle Ltd and sponsored by EMC. Information contained within The Cloud Service Provider18 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.
  • 21. EMC2, EMC, RSA, the EMC logo, and where information lives are registered trademarks or trademarks of EMC Corporation in the United States and other countries.© Copyright 2010 EMC Corporation. All rights reserved. 2126
  • 22. The Cloud Sponsored byServiceProvider ReportIssue #15 Jun/Jul11InterviewINTERVIEWDave Jilk, InterviewChief Executive,Standing Cloud Standing Cloud’s Dave Jilk Standing Cloud is a US-based platform-as-a-service (PaaS) and software-as-a-service (SaaS) player, set up in 2009, with a focus on Java, PHP, Python, Ruby on Rails, and other development tools, as well as other commercial software applications. Unlike some, the company sees PaaS and SaaS as inseparable, and is seeking to push a combination of the two beyond PaaS’s informal buyer/developer customer base, positioning itself as an ‘application layer’ provider for both enterprises and infrastructure-as-a-service (IaaS) providers. In recent months, this has seen it form relationships with IaaS players such as OpSource (now being acquired by NTT’s Dimension Data) and UK-based Flexiant. Cloud Service Provider Report asked Dave Jilk, Chief Executive of Standing Cloud,Source: Standing Cloud. what this melding of application and infrastructure o erings might mean for service providers and customers. Can you give us a brief summary of Standing Cloud and your aspirations as a business? We started in January 2009 with the idea that there were two things going on that were interesting in the space. One was that the development of applications seemed to have gotten harder and more complex, and we were looking at the market for application development tools that made it easier. The other piece was Amazon Web Services — at that time, in late-2008, Amazon accounted for most of what was going on in utility computing in the cloud, and with IaaS. We felt there was something going on there that was very interesting. So, what we did was we looked at combining the two things, and very quickly we realised that development tools was going to be a tough thing to accomplish. The development market was very fragmented — developers all had their own preferences in terms of tools that they liked to use. Also, development tools are hard to build — making something that’s easy to use for development is not easy. We realised that most of the development tools people want to use, with the exception of Microsoft tools, are open source, or non-proprietary at least, so we decided to build a PaaS o ering based primarily on open source tools, and focus our e orts on connecting with the di erent infrastructure services. The Cloud Service Provider Report is produced by Market Mettle Ltd and sponsored by EMC. Information contained within The Cloud Service Provider20 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.
  • 23. Sponsored by The Cloud Service Provider Report Issue #15 Jun/Jul11 Interview “How do you see PaaS fitting into the overall cloud industry model, and where doyour o erings sit within that? Do you see yourselves as a pure PaaS player? The industry has come up with this positioning with IaaS at the ‘bottom’, and then The idea is PaaS and SaaS ‘above’ that; and SaaS being aimed at end users, PaaS being aimed at developers, and infrastructure [IaaS] being aimed at system administrators. you can use That’s a good, simple view of the marketplace, but it’s not necessarily how things are architected — for example, if you look at Salesforce.com, which is SaaS and it’s the kind of quintessential, original SaaS platform, originally there was no PaaS underneath that; the SaaS was not built on top of a platform, it was built on their still your own own infrastructure. It was not built on IaaS either — so SaaS in that model is impenetrable — you can’t get at anything underneath it. deployment Salesforce, of course, subsequently built their Force.com platform, and now — it’s not a they’re giving access to some elements of the software. But we have a little bit of a di erent view. We see the whole layer ‘above’ IaaS as big, shared, the ‘application layer’, and so, by providing PaaS, we can deliver a development environment technology spec for developers while also o ering what SugarCRM call monolithic ‘distributed SaaS’. The idea is you can use SaaS and it’s still your own deployment — it’s not a big, shared, monolithic system that you’re sharing with many others system that around you; it’s actually your own deployment — but you still don’t have to have to manage it, or deal with the infrastructure or platforms or anything. you’re sharing So we see that entire application layer as a continuum. An application developer with many typically doesn’t start with just a blank editor window and start writing code. They work with frameworks and tools, and other open source components, others around that they bring in. An end user often does not just use the application as it was originally delivered. They might put themes in, or add some modules like you… a management system, or hire a consultant to make a few customisations for them, so there’s an entire continuum from pure PaaS to distributed SaaS. What’s important about that is it works on top of IaaS, so that providers of infrastructure can o er that application layer to their customers.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. 21
  • 24. The Cloud Sponsored byServiceProvider ReportIssue #15 Jun/Jul11Interview“ Which types of services are you o ering within that layer, in terms of both software applications and platform functionality? In terms of the Well, in terms of the actual services that the system provides, the idea is to make it easy to manage the application — whether you’re developing it or just actual services deploying it. We have a catalogue of about 80 applications. Most of them, but not all of them, are open source. We’re starting to get into the commercial that the system application arena, and of course you pay an extra subscription fee for those. provides, Now, if you need to customise applications, we then provide you with access to the platform layer, where you can now add your own code and change the code. the idea is to We manage the backups and the system so that the codes that you modified are deployed, even if, let’s say, your server has a problem. We will redeploy that make it easy application on another server, and get it back up and running automatically if that’s what you want. Or you can move it to a di erent server of a di erent size, if the to manage application gets more heavily used. Coming soon, we will have what you might call ‘horizontal scalability’, with the idea that you can scale-out your applications. the application So we manage backups, we manage monitoring, we make administration very easy to deal with for the end user or the developer; and another thing we do — whether with certain applications is we can upgrade to a new version with a couple of clicks. So, we support a variety of versions of particular applications that are you’re in our catalogue, and you can upgrade from one to the next if that comes out, and actually deploy the upgrade on a test server first, to make sure that everything developing it or works properly. That’s particularly important if you’ve made any customisations. just deploying it How do you see your portfolio evolving over time? Are there any particular areas you are looking to push into? I would say that the main things that we’re doing are in two areas. One is heading heavily into the commercial arena, not only with the application software, but also with the underlying technology. For example, we have a partnership with Nexaweb, and the market as a whole is also driving us to be able to support tools like Oracle Database and WebLogic, or IBM’s products. So, for enterprises, having that in the technology stack is important. We’re talking to a number of folks about being able to license their commercial applications on a subscription basis. We do have two applications that are not well known today running on Standing Cloud that are commercial and incur an extra licence fee, so we have started that process and you’ll be seeing much more of the commercial application arena within Standing Cloud over the rest of the year. The other thing that we want to do is — quite frankly, our capabilities are not filled out for all the applications, so, for example, only a subset of our supported applications have upgrades available — we want to make that available more broadly; so the idea is that we’ve got the basic capabilities in the architecture of the system and built in for a few applications, but it takes a little bit of work to get that going for all of them. The Cloud Service Provider Report is produced by Market Mettle Ltd and sponsored by EMC. Information contained within The Cloud Service Provider22 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.
  • 25. Sponsored by The Cloud Service Provider Report Issue #15 Jun/Jul11 Interview “You mentioned Oracle. They seem to be more cautiously moving into thecloud now. Is that a threat? Oracle’s interesting. They are very cautious about it. I suspect that they’re trying The point is really hard not to poach their licence business. They do license Oracle Database and WebLogic under certain circumstances, on a subscription basis. You know, Oracle’s that we can famous for making deals on its software, but they don’t really make any deals on the subscription stu , so you may occasionally end up being better o just licensing support all it and managing the financing that way, rather than licensing a subscription. So I’m hoping they continue to evolve in that direction and I think they will. I think these different they see the value but they want to be careful — they have a big business to protect.You mentioned your partnerships with IaaS players earlier. Can you explain providersthe reasoning behind adopting this strategy, as opposed to taking a moreuniversal, independent approach, and how many partnerships do you envisage easily and, byultimately having? providing a The idea is not making it so people can move from one cloud to another — although theoretically that’s always the case because of the way we sell the system. ‘private label’, That’s not the point. The point is that we can support all these di erent providers easily and, by providing a ‘private label’, we give them the opportunity to o er PaaS and we give them distributed SaaS without invoking this competitive environment where there are a lot of di erent providers. the opportunity Theoretically, we could build a PaaS in another model and try to run it on everybody’s di erent infrastructure, but, instead, what we do is we interface with the IaaS to offer PaaS capabilities and can deploy things very easily. Because of our architecture, it’s fairly straightforward for us to hand it to a new infrastructure provider. We support around and distributed ten infrastructure providers today, and there are a couple more that are coming in within a few weeks. We actually will be adding a lot of IaaS partners over the rest of SaaS without the year. So that’s because of the architectural approach that we’ve used that we can do that very easily. invoking this If you look at the OpSource announcement, where we have a joint marketing competitive agreement with them, we’re actually working together with them to o er this to their customers and it’s actually a private label arrangement, so it’s environment Standing Cloud powered by OpSource. You will be seeing more of those; in fact, you’ll be seeing some of those in Europe coming soon, I suspect. where there are a lot of different providersThe 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. 23
  • 26. The Cloud Sponsored byServiceProvider ReportIssue #15 Jun/Jul11Interview“ Is there much interest among IaaS providers to move into PaaS yet? Everybody’s at a di erent point in the evolution, right? There are some people Many, who are still just thinking about it; and there are others who have already o ered IaaS for a while, and they’re starting to realise that the ‘application layer’, as we especially define it, is an important component of a complete o ering. those coming In other words, not every end customer needs what Standing Cloud does — some have system administrators and an IT department that’s ready to roll, from the and they just want to move into a public cloud environment. But, what these providers realise is certain segments of the customer base that are using their servers need co-location something additional, beyond the raw infrastructure. And so, when a service provider sees that, they get into the market and they say ‘well, what are we going to do?’, and world, it’s a tricky question because they’re data centre people; they run great data centres. They know how to run the network and switches and cooling systems, all the stu don’t even I don’t understand: that’s all very hard to do well, consistently, and that’s what they know how to do. know what Many, especially those coming from the co-location world, don’t even know what applications are running on their data centres. Many service providers applications are maybe more aware — but, again, they tend to stay at the lower level of the stack also. They tend to manage the operating systems and the core technologies. are running Building the application layer is not really something they’ve been in before, and, probably — at least what we typically find — it is not a business that they on their want to be in directly. They need to o er it to their customers, but they want a way to do it without having to build it themselves, and so that’s what we o er data centres — a very fast way for them to get into o ering those capabilities without having to build anything. Are there a few companies out there looking for acquisitions as well? Sure, but we want to o er that [value-add capability] very broadly across the industry, to a variety of [service] providers, even to corporations if they have a private cloud. We’re working with cloud providers as a way to o er a joint service together, but, in terms of more strategic partnerships, we are trying to serve the entire industry. The Cloud Service Provider Report is produced by Market Mettle Ltd and sponsored by EMC. Information contained within The Cloud Service Provider24 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.
  • 27. Sponsored by The Cloud Service Provider Report Issue #15 Jun/Jul11 Interview “What trends are you seeing from the end-user base in terms of level of uptake,and where is demand coming from? Does the partnership strategy represent ashift in terms of the customers you are targeting? I think that the So, until the beginning of this year, we had a retail strategy: so we were just going out into the world and trying to find people who were ready to move to the cloud infrastructure — and that’s really di cult for us as a small company. That’s one of the reasons why we’re [now] working with cloud providers as partners — the people that they’re providers who accessing have already made the decision to move to the cloud. We’ve really just begun on that strategy, so I wouldn’t want to talk too much about uptake yet. previously We do have a number of customers and they typically have been people that we’ve attracted from shared-hosting environments, or they’re running their own server and did managed they’re tired of it. So, they’re typically what we call solution providers — people who are managing and developing applications on behalf of their customers. services, and They might be websites, they might be application providers, small businesses, or consulting firms. now are doing As I said, we are moving more into enterprise-ish applications. Ultimately, these IaaS as well, applications will probably be hosted in the corporate data centre, but the development of them is something they want to do in the cloud. I have to say, are seeing I’m very, very curious to see exactly what we’re going to run into as we start to work with cloud providers and their customers, but it’s still pretty early. I think, generally, that [transition if you dig into PaaS providers, it’s very early from a technology perspective, and also very early from a market perspective. to the cloud]Have you got a gauge of enterprise chief information o cers’ (CIO) attitudetowards PaaS at the moment? already. Typically not. As we talked about, [the PaaS market has revolved around] the concept of the informal buyer and, by definition, the informal buyer is not the CIO. They’re people who have worked around IT, or who IT have given a blessing to ‘go and do something else: we can’t help you right now’. They’re the head of a business unit or a development team, and they’re not going to be the CIO or central IT. I’ve had a few meetings with CIOs and those folks. I think what’s on their mind is virtualising their own data centres, to get to that stage, and what will be interesting is to see — as they reach capacity in their virtualised data centres — will they build a new virtualised data centre, or will they say ‘we have a set of applications running here that don’t really have to be run on our own data centre, and should we go with public cloud?’. That will be a really interesting transition to see. I think that the infrastructure providers who previously did managed services, and now are doing IaaS as well, are seeing that [transition to the cloud] already. They were operating these applications in a kind of cloistered environment on behalf of the enterprise. Now they’re running out of space, and they have an IaaS o ering. They’re moving the less mission-critical applications into the cloud.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. 25
  • 28. The Cloud Sponsored byServiceProvider ReportIssue #15 Jun/Jul11Interview“ Much of the commentary around PaaS suggests it is still early days, and o erings remain pretty fragmented in terms of languages and functionality. We’re just Do you see a shift over the next few years, as providers race to bring full service o erings to market, or do you envisage specialists evolving? How do you see trying to make things panning out? That is definitely our vision as well — in other words, once you’ve built the basic it easier to capabilities of PaaS, there is no particular reason why you have to limit it to one language or one technology stack. Others have done it and have some of manage all that capability — where you can select components — and that’s definitely part of where we’re headed. the stuff that There’s a distinction among PaaS providers, in that some of the platforms surrounds the are essentially shared-hosting environments, with scalability and measurable compute resources. You’re completely hidden from the underlying application infrastructure and technology stack — you upload your application and it runs. You have to conform to certain limitations or standards to be able to operate in that environment. Google App Engine is a good example of that, where it’s essentially a container where the application lives, and you get billed on the basis of how many compute cycles you use and how many requests you make, and things like that. Our platform is very di erent, and it’s much more along the lines of what people are used to. The idea is that we deploy the application on infrastructure — and, although we try to make it easy, so you don’t have to think about servers — there are servers there and we’re not avoiding that fact completely; you can get down-and-dirty and look at them, and you can in fact change most aspects of the infrastructure, as you normally would if you were running the server yourself. But you don’t have to. Instead of creating an entirely new paradigm for how applications are managed in the core, we have conformed to that [established] paradigm. We’re just trying to make it easier to manage all the stu that surrounds the application. You end up with the same e ect, when your apps are running, but you don’t get locked into the platform that the particular provider has. So that kind of approach also makes it easier for us to manage a wider variety of languages and services. The Cloud Service Provider Report is produced by Market Mettle Ltd and sponsored by EMC. Information contained within The Cloud Service Provider26 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.
  • 29. Sponsored by The Cloud Service Provider Report Issue #15 Jun/Jul11 Interview “Have you seen any change in behaviour from your customers since the recenthigh-profile outages at Amazon and elsewhere? Has it woken people up to theneed to have redundancy? After the I think we had an increase in understanding of how this needs to be done. Maybe not universally — obviously some people will take the position that, ‘well, this Amazon just proves that cloud computing isn’t really there or isn’t really going to work’, or whatever, because they’re negative on it. I think they’re missing a point, outage, people and I think other people have realised that this is not magic — it’s a deployment mechanism, it’s a way of doing infrastructure, and a lot of the same rules apply when realised the you use IaaS as apply when you build your own physical data centre. Another thing is we built our system so that applications could be portable among practical cloud providers, among di erent data centres, among di erent distributions of the operating system — we tried really hard not to lock the application into a benefits of particular environment. Again, this is the ‘avoiding lock-in’ philosophy that we have. For the first two years of our existence, when I would demonstrate that having this kind capability to people, I would back-up an application and restore it to di erent providers, like Amazon and Rackspace, and you can do that in a couple of of portable minutes with Standing Cloud. I would demonstrate that to people, and they would say ‘Oh, that’s really interesting, but I don’t really see why I would need that. architecture Amazon does fine’. … After the Amazon outage, people realised the practical benefits of having this kind of portable architecture, whether that means that you can just move to a di erent if you build data centre within the same provider, or something else. The point is that you’re not stuck, you’re not frozen in that one place. This is another reason why, with the it on top of Google App Engine and Microsoft, which are PaaS o erings in the other mould, that your applications don’t work anywhere else. That’s the only place they’ll work. our platform, So you are very, very locked in. You know, with Standing Cloud, if you build it on top of our platform, it’s naturally portable and so that’s the important part of our policy. it’s naturally portable and so that’s the important part of our policyThe 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. 27
  • 30. The Cloud Sponsored byServiceProvider ReportIssue #15 Jun/Jul11Interview“ Where is your footprint now in terms of geography, and what’s the plan in terms of expansion over the next few months? We haven’t So far, we mostly work with providers based in the US — you know, from a business perspective, we start close to home. We have a few European data centres going, emphasised with Tagadab and Amazon, for example. We have some other things going on. There is no technical limitation on us being able to deploy in Asia and other places. We it yet in haven’t emphasised it yet in terms of our partnerships, but we’ve seen a lot of cloud stu going on in South America also. terms of our A lot of this reminds me of the cellphone market, where it in some ways grew faster partnerships, in developing countries because there was no existing telephone infrastructure, or it was very limited. Similarly, there’s so much data centre infrastructure in the US, but we’ve and in some ways cloud computing is growing faster in countries where they don’t have that infrastructure. It’s easier now for people to set up infrastructure for the seen a lot of first time. So, we anticipate a global footprint at some point; and, technology-wise, that’s very cloud stuff easy for us. going on in Can you put a timeframe on expansion into emerging markets? I would say, in 2011, you’re mainly going to see Standing Cloud in the US and South America Europe still. Beyond that, some of the IaaS providers we’re working with are building data centres all over the world, and there’s no reason for us not to support those. So, you’ll see technical capability of supporting those data centres as soon as they come online. Is the OpSource partnership an example of one that could allow you to expand internationally? The partnership is worldwide. It’s not clear yet whether we will just mainly focus on the US at first, or do that worldwide. There’s no particular reason not to. Again, one of the benefits of the cloud is that it [location] doesn’t matter as much as it used to. You can move physical infrastructure around — if your customer is in Europe, you can deploy things pretty much the same way. We’re a small business so we’re not really in a position to put our feet on the ground in Europe at this point, but we will see. OpSource have an interesting model, and I don’t know if it makes sense to rely on my characterisation of it, but my understanding of it is that, when you partner with OpSource, you have the ability to use their own proprietary data centres, or the data centres of their partners. It’s all operated through OpSource technology and APIs [application programming interfaces] as such. Their partners also o er the IaaS capabilities directly to their customers, and those customers can also use OpSource as a back end. It’s not quite an exchange — it’s not intended to be a marketplace — but your ability to deploy in di erent places and through di erent providers that are in that network is really flexible. The Cloud Service Provider Report is produced by Market Mettle Ltd and sponsored by EMC. Information contained within The Cloud Service Provider28 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.
  • 31. EMC2, EMC, the EMC logo, and where information lives are registered trademarks or trademarks of EMC Corporation in the United States and other countries.Copyright ©2010 EMC Corporation. All rights reserved. 2125
  • 32. The Cloud Sponsored byServiceProvider ReportIssue #15 Jun/Jul11Markets and trendsMARKETS Per Dahlberg, Chief Executive Markets and trends of the recently formed Asia Cloud Computing Association (Cloud Service Provider Report, #10), claimed that Players cloud services could act as the “next great leveller” of global economic competition Cloud investment, acquisition action round-up if common standards can be created to fuel development. There continued to be numerous announcements of investment, and other merger and “Cloud computing is poised acquisition activity across the cloud computing value chain, with deals seeing: to help accelerate the momentum around trade US telco CenturyLink complete its acquisition of hosted infrastructure player Savvis, and economic integration here in Asia”, said Dahlberg. following the deal’s announcement in April 2011 (Cloud Service Provider Report, #14). “The knowledge economy will Device vendor Acer buy US cloud software and infrastructure specialist iGware, fuel Asia’s future… However, to realise this potential, the region in a $320m deal aimed at supporting future cloud services rollout. The move needs to harmonise the policy comes with the company (and Taiwan’s IT industry in general — Cloud Service and regulatory frameworks Provider Report, passim) seeking to diversify beyond hardware through that will facilitate e ective trade in digital information investments in cloud computing. iGware’s technology — which focuses on and services”, he added. “device ecosystems, virtual consoles, and personal cloud” systems, including [Further reference: Cloud computing those supporting Nintendo’s Wii — will be integrated with an “open” cloud is the next leveller infrastructure platform called Acer Cloud, to be rolled out commercially in 2012. — South China Morning Post, The goal of Acer Cloud is to “allow our users [to] enjoy and manage all their ICT 25 July 2011.] [information and communications technology] devices, contents, and resources Recently formed with ease, by integrating all Acer products…within a safe and secure environment”, cloud computing advisory group said J. T. Wang, Chairman and Chief Executive of Acer. Belgium Cloud urged the government to “keep it simple” Australian telecoms player TPG Telecom acquired local cloud service provider when formulating policy around IntraPower, to support an expansion into the cloud computing market. “It’s very cloud computing. The group, important that we get into the cloud area and integrate our telecommunications which was formed earlier in 2011 and is chaired by Rudi Lenaerts, o ering with the cloud and other applications”, said David Teoh, Executive Chairman the Chief Executive of of TPG. IntraPower markets a combined infrastructure, software, and communications IT distributor interAct, presented the government with a document o ering called Business On-Demand, with customers including Australian financiers summarising how it believes Wilson HTM Investment Group (Cloud Service Provider Report, #7). cloud computing could be best Java-oriented platform-as-a-service (PaaS) start-up CloudBees pick up deployed for Belgian businesses. Belgium Cloud has stated its $10.5m in Series-B funding, following on from a $4m first round announced aims are to promote cloud in November 2010 (Cloud Service Provider Report, #10). The financing, led by computing in a vendor-neutral way, and help Belgian small- and Lightspeed Venture Partners, will be used by the company to “accelerate the roll out medium-size enterprises match of additional product capabilities, and expand marketing and sales”, CloudBees said. cloud computing solutions with Belgian alternative telco Toledo Telecom buy local virtualisation player Openweb, their business requirements. [Further reference: to aid upcoming plans to launch a family of cloud services under the brand Le pont belge vers le ‘cloud’ Toledo Solutions, according to local media reports. — Datanews.com, 7 July 2011.] Cloud-based testing and development, and enterprise application provider CloudShare announce a $10m third round of funding, led by Globespan Capital Partners, to help it “expand its sales presence and further strengthen its market leadership position in the cloud-based test, development, demo, and training of SharePoint applications”. The Cloud Service Provider Report is produced by Market Mettle Ltd and sponsored by EMC. Information contained within The Cloud Service Provider30 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.
  • 33. Sponsored by The Cloud Service Provider Report Issue #15 Jun/Jul11 Markets and trends US IT application performance specialist Riverbed Technology acquired UK-based PLAYERS load balancing and tra c management solution provider Zeus Technology, in a “…out of context…” deal worth up to $140m. Riverbed described Zeus’s software-based solutions as Blake Irving, Chief Product O cer “better suited” than hardware o erings “for virtual and cloud environments”. of Yahoo!, sought to wow CopperEgg, a Texas, US-based cloud analytics software start-up, attendees at the firm’s May 2011 receive $2m in Series-A funding to help develop its recently launched Investor Day regarding the workload handled by its RevealCloud performance monitoring solution for public and private Hadoop-based data infrastructure, cloud applications. Silverton Partners led the investment round. claiming Yahoo! “actually has the largest private cloud in the world”. Networking and virtualisation vendor Citrix Systems acquire open source enterprise cloud platform developer Cloud.com, little more than a year after the start-up “ [We have] 43,100 servers, and emerged from stealth mode (Cloud Service Provider Report, #6 and passim). it’s growing daily. We process Cloud computing technology start-up Gizmox announce a $2.5m investment in its over 400 million events every ten minutes on that company by Citrix Systems, as part of a strategic partnership to enable enterprises Hadoop cloud. That’s over to convert existing and new applications to operate on HTML5-enabled devices, eleven billion pages a month. That’s deep science. That’s using Gizmox’s Visual WebGui cloud conversion solution. scale… we have one exabyte US-based virtualisation technology start-up RNA Networks acquired by Dell. of data generally across Apica, a Sweden- and US-based performance monitoring technology provider the company, but we have 200 terabytes in this Hadoop for cloud and mobile applications, close a $2m Series-B round of financing led infrastructure, and it grows by by Swedish venture capital fund Industrifonden. The investors — which also 50 terabytes a day. And if you just want to do a comparison include ALMI Invest and KTH Chalmers Capital — said they are “betting on the against something else, the company’s aggressive US expansion plans”. Library of Congress has Nimbic, a specialist in cloud-based electronic design automation solutions, 200 terabytes of data in total. We’re growing 50 terabytes a secure $6.9m in Series-B funding from Austral Capital, Madrona Venture Group, day, and that provides amazing and WRF Capital — a move it said will enable it to “accelerate the deployment of personalised benefit for folks that are on that grid. ” the company’s cloud computing e orts in 3D electromagnetic signal integrity, power — Irving. integrity, and EMI analysis field solutions”. [Further reference:[Further reference: Nimbic secures $6.9m Series-B financing — Nimbic, 2 June 2011; Yahoo! Inc to host Investor DayDell acquires cloud memory startup RNA Networks — ReadWriteWeb, 23 June 2011; — final — FD Wire, 25 May 2011.]Toledo Telecom neemt OpenWeb over — Gazet van Antwerpen, 28 June 2011;Gizmox receives strategic investment from Citrix Systems — Gizmox, 30 June 2011;CloudShare closes $10 million VC funding round — CloudShare, 6 July 2011;Citrix changes the game in cloud infrastructure with Cloud.com acquisition— Citrix, 12 July 2011; Federal Communications Commission approvesCenturyLink-Savvis merger — Savvis, 12 July 2011; Apica closes Series-Bround with $2m for U.S. expansion — Apica, 14 July 2011; TPG joins the cloud,buys IntraPower — The Australian, 15 July 2011; CopperEgg secures $2 million tobring real-time analytics to the cloud — CopperEgg, 16 July 2011; Riverbed expandsIT performance business with acquisition of Zeus Technology — Riverbed, 19 July 2011;Riverbed buys UK cloud company for $140m — Financial Times, 20 July 2011;Acer to acquire US-based iGware with US$320m for mid- to long-term investmentin cloud technology — Acer, 21 July 2011; Acer to buy iGware with USD 320mn— SinoCast, 22 July 2011; CloudBees secures $10.5 million in Series-B venture funding— CloudBees, 25 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. 31
  • 34. The Cloud Sponsored byServiceProvider ReportIssue #15 Jun/Jul11Markets and trendsTRENDS A survey of 1,200 IT professionals Trends in the USA backed up indications that many government and IDC predicts “radical” public cloud impact corporate end users will make their early steps into Research group IDC released another set of bullish projections for short- to the cloud via private rather than public cloud o erings. medium-term growth in the global market for public cloud services, trumpeting 7% of the study’s respondents their promise, alongside other disruptive technologies such as mobile and social expressed a preference for networking, to “radically expand the users and uses of information technology”. public cloud services, while 47% said they are more likely to The company expects the public cloud market to expand at a compound annual use private cloud propositions. The research, carried out by growth rate of 27.6% in the five-year period between 2011 and 2015, rising from O’Kee e & Co for service provider $21.5bn to $72.9bn over that timeframe. This will represent a four times’ faster rate of CDW, polled 150 individuals in each of the: federal government; expansion than total IT market growth over the same period, IDC predicted. large business; medium business; small business; state and local Structurally, the company sees this trend as transformative for the entire industry, government; healthcare; higher asserting that “cloud services represent a strategic growth area for virtually all education; and K-12 public school segments. It also identified IT vendors”, and forecasting that the “winners of the cloud platform wars will that many organisations are likely be the new power brokers of the IT industry”. still only cautiously embracing cloud services — while 84% Cloud less US-centric “than thought” of respondents said their The report sees uptake of on-demand application, compute, and storage o erings as employers have deployed at least one cloud application, only the main drivers of growth in the public cloud market, as well as noting that regions 28% recognised themselves as outside the USA will show “much stronger growth” than the country “as cloud services ‘cloud users’. Furthermore, 73% reported their first step into the adoption accelerates”. “There are more cloud services vendors and greater end-user cloud was through a single cloud spending in Asia-Pacific and Western Europe than previously thought”, it added. application, rather than a strategic or more widespread shift. IDC also expects public cloud services to “eventually” mature in terms of reliability [Further reference: 28 percent of US organisations and security, but did not provide a more precise timeframe. using cloud computing — CDW, 26 May 2011; “ IDC’s expectation is that public clouds will mature and eventually incorporate Private clouds hold a wide many of the capabilities — particularly security and availability — that make lead over public clouds private clouds a more attractive option today. ” among IT pros polled — Network World, 1 June 2011] — Frank Gens, Senior Vice-President and Chief Analyst at IDC. [Further reference: Public IT cloud services spending to reach $72.9 billion in 2015, capturing nearly half of net new spending growth in five key product segments, according to IDC — IDC, 20 June 2011.] The Cloud Service Provider Report is produced by Market Mettle Ltd and sponsored by EMC. Information contained within The Cloud Service Provider32 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.
  • 35. Sponsored by The Cloud Service Provider Report Issue #15 Jun/Jul11 Markets and trendsBT: Backhaul will limit growth of mobile cloud TRENDS InformationWeek AnalyticsSpeaking at a keynote presentation at CommunicAsia in Singapore, Sean Bergin, released a study highlighting the challenges facingHead of BT Global Telecom Markets in Southeast Asia, cautioned mobile operators companies in negotiatingthat capacity on backhaul networks will be the biggest stumbling block to cloud and tracking complianceservices accessed via mobile devices as the market develops. of external service level agreements (SLA) when“ Backhaul is the biggest bottleneck and the biggest inhibitor to cloud computing migrating IT functions to the public cloud. The survey polled taking o …I spend at least half of my time speaking to mobile operators; the 560 IT service consumers and majority of these [cloud] services are being accessed via handsets [and rising data providers, and 46% agreed it is “di cult” to monitor service level tra c is] killing backhaul networks, and killing [operators’] costs. ” — Bergin. targets with public cloud service providers. “As companies comeHe added that the problem is being amplified by operators o ering flat-rate data to rely more heavily on publictari s in a bid to sign new users (although the industry is now moving away from and hybrid cloud services for infrastructure and applications,this model). “Business models are being killed by marketers chasing consumers with SLAs — and monitoring of SLAsall-you-can-eat data plans”, he said, and warned that a deterioration in the quality of — become even more critical.experience for customers will hamper the development of cloud computing. ITIL [Information Technology Infrastructure Library] and otherBergin urged operators to bolster their backhaul networks, and invest in caching cloud service management frameworks are becoming increasinglyapplications and services closer to end users to ease the load on networks. important because they integrate SLAs in their operational[Further reference: BT: backhaul is cloud bottleneck — Light Reading, 20 June 2011; models and, ultimately, increaseBackhaul is cloud computing’s biggest stumbling block — BT e ciency”, said Lorna Garey, Content Director at— Total Telecom, 21 June 2011.] InformationWeek Analytics. [Further reference: InformationWeek Analytics new research finds only 4% of SLAs met all service level targets over the past 12 months — InformationWeek Analytics, 24 June 2011.] Research group In-Stat highlighted a survey whose findings play down the potential impact of cloud-based storage solutions on the network-attached storage (NAS) market among small- and medium-size enterprises. “Over seven-in-ten” respondents to the poll that use cloud-based storage solutions also use NAS. The company added that those that do not use NAS “tend to” have fewer than 50 employees. [Further reference: Cloud storage is not the death knell for worldwide small- and medium- business (SMB) network-attached storage (NAS); SMB NAS revenues to reach $2 billion in 2015, says In-Stat — In-Stat, 23 May 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. 33
  • 36. EMC: #1 IN SECURITY FORVIRTUALIZATIONSource: BTC Logic Top Ten Cloud Companies Ranking ReportEMC2, EMC, where information lives, and RSA are registered trademarks or trademarks of EMC Corporation in the United States and other countries. VMware is a registered trademark of VMware, Inc. in the United Statesand/or other jurisdictions. © Copyright 2010 EMC Corporation. All rights reserved.
  • 37. Sponsored by The Cloud Service Provider Report Issue #15 Jun/Jul11 IndexINDEX D G H dacoma GmbH, 18 Geographic Hewlett-Packard, 11, 17 SYMBOLS Datacastle Corp., 18 Asia, 6, 7, 9, 10, 11, 12, 27, 30, 32 Hibernia Evros Technology Group, 158x8, Inc., 5 Dell, 31 Australia, 6, 9, 10 Digital Planet, 15 Deutsche Telekom, 13 China, 6, 7, 30 Hutchison Whampoa, 9 A Hrvatski Telekom (HT), 13 Hong Kong, 6, 9Acer, 30, 31 I T-Systems, 13 India, 6, 9, 10, 11, 12 iGware, Inc., 30, 31 DWS Advanced Business Solutions Ltd, 10 Indonesia, 9 IBM, 7, 18, 22Akamai Technologies, Inc., 9 Taten, 10 Japan, 3, 6, 7, 9, 10 IDC, 11, 32ALMI Företagspartner AB, 31 Malaysia, 9 Industrifonden, 31Amata Corp. PCL, 9 E New Zealand, 11 In-Stat, 33Amazon.com, Inc., 10, 13, 20, 27 Edinburgh Napier University, 16 Philippines, 9 Intelligence Bureau (IB, India), 17 Amazon Web Services (AWS), Centre for Distributed Computing, Singapore, 6, 9, 10, 33 interAct bvba, 30 10, 13, 20 Networking & Security (CDCS), 16 Southeast Asia, 33 Interactive (Australia), 10Apica AB, 31 EMC, 3, 5, 17 Taiwan, 6, 7, 30 Internet Initiative Japan, 7Asia Cloud Computing Association VMware (see also separate listing), Thailand, 9 IIJ GIO, 7 (Asia Cloud), 30 3, 9, 12 Europe, 10, 12, 13, 16, 17, 18, 23,Atos Origin, 18 27, 28, 32 K EMI Group Ltd, 31 Siemens Information Solutions, 18 Enspire Australia, 10 Belgium, 30 KDDI, 6AT&T, 3, 4 Equinix, Inc., 9, 10 Central Europe, 15 HKCOLO.NET Ltd (TELEHOUSEAustral Capital, 31 European Union (EU) Croatia, 13 Hong Kong Cloud Computing European Investment Bank (EIB), 17 Czech Republic, 15 Complex (CCC), see also B France, 17 Goodcolo Ltd), 6Barclays, 3, 4 F Germany, 6, 13, 18 Telehouse, 6 Barclays Capital, 3, 4 FarEasTone Telecommunications Co. (FET), 7 Hungary, 15 KPN, 15Belgium Cloud, 30 Federal Communications Commission Netherlands, 15 KTH Chalmers Capital, 31Bharat Sanchar Nigam (BSNL), 9 (FCC), 31 Poland, 15, 17BT Group, 33 Portugal, 17 L Flexiant, 16, 20 Fortinet, Inc., 12 Romania, 15 Lightspeed Venture Partners, 30 C Slovakia, 15 France Télécom, 17CDW, 32 Orange, 17 Sweden, 31 MCenturyLink, Inc., 13, 30, 31 Business Services, 17 UK, 6, 13, 16, 20, 30, 31 Macquarie Telecom Pty Ltd, 10Chelsea & Westminster Hospital Telekomunikacja Polska (TP), 17 Latin America, 27 Madrona Venture Group, Inc., 31 NHS Foundation Trust, 16 Frost & Sullivan, 11 Brazil, 3 Microsoft, 9, 12, 13, 17, 20, 27China Mobile, 7 Fujitsu, 6, 7, 10 North America Mozilla Foundation, 13China Telecom, 6, 7 Canada, 3Chunghwa Telecom Co., Ltd, 6, 7 USA, 3, 5, 6, 9, 10, 12, 13, 18,Cisco Systems, 5, 12, 15, 17 20, 27, 28, 30, 31, 32Citrix Systems, Inc., 31 Gizmox, 31 Cloud.com, Inc., 31 Globespan Capital Partners, 30Claranet Ltd Goodcolo Ltd Tagadab, 27 HKCOLO.NET Ltd (TELEHOUSECloudBees, 30, 31 Hong Kong Cloud ComputingCloudShare, Inc. (IT Structures), 30, 31 Complex (CCC), see also KDDI), 6Computacenter, 16 Google, 13, 18, 26, 27CopperEgg Corp., 31 GTS Central Europe, 15 Interware ZRt., 15 Sitel Data Center, 15The 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. 35
  • 38. The Cloud Sponsored byServiceProvider ReportIssue #15 Jun/Jul11Markets and trends N Q T Telecom Italia, 17 Telstra, 10NEC, 7, 9 Quanta Computer, 7 Technology Texas Pacific Group (TPG), 30, 31Netmagic Solutions, 12 API, 7, 28 R Time Warner Cable, Inc., 13Neusoft Corp., 7 As-a-Service, 7, 12, 17 NaviSite, Inc., 13New York Stock Exchange, 3 Rackspace Managed Hosting, 13, 27 Infrastructure (IaaS), 4, 5, 9, 11, Toledo Telecom SA, 30, 31Nexaweb Technologies, Inc., 22 Riverbed Technology, Inc., 30, 31 12, 15, 16, 17, 20, 21, 23, 24, OpenWeb, 30Nimbic, Inc. (Physware), 31 Zeus Technology Ltd, 30, 31 25, 27, 28 TPG Telecom LtdNintendo, 30 Platform (PaaS), 9, 20, 21, 23, (SP Telemedia Ltd/Pipe Networks), 30Nippon Telegraph and Telephone Corp. S 24, 25, 26, 27, 30 IntraPower Ltd, 30, 31 (NTT), 9, 20 Salesforce.com, 21 Software (SaaS), 6, 9, 11, 12, Dimension Data, 9, 20 SAP, 6, 17 13, 17, 20, 21, 23 V DoCoMo Saudi Telecom Co. (STC), 12 VDI, 9, 17 VCE Co. LLC Philippine Long Distance Savvis, Inc., 13, 30, 31 CDN, 9 (Virtual Computing Environment Co., Telephone Co. (PLDT, see Sify Technologies Ltd (Satyam Infoway), 12 Cloud, 3, 4, 5, 6, 7, 9, 10, 11, 12, 13, see also Cisco and EMC), 5 also separate listing), 9 Silverton Partners, 31 15, 16, 17, 18, 20, 21, 22, 23, 24, Verizon Communications, 3, 10, 13Nokia, 12 Singapore Telecom, 10 25, 27, 28, 30, 31, 32, 33 Terremark Worldwide, Inc., 13 Nokia Growth Partners, 12 Optus (Australia), 10 Hybrid, 3, 4, 5, 12, 15, 16, 24, Verizon Business, 10 Softsource Ltd, 11 31, 32, 33 O VMware, Inc., 3, 9, 12 Standing Cloud, Inc., 20, 22, 23, 24, 27, 28 Internal, 6, 7, 9, 31Open Cloud, 13 STW Communications Group Ltd, 9 Public, 3, 9, 12, 15, 16, 24, 25, WOpSource, Inc., 20, 23, 28 BrightHost Pty Ltd, 9 31, 32, 33 Washington Research FoundationOracle, 22, 23 SugarCRM, Inc., 21 Ethernet, 17 WRF Capital, 31Osiatis Group Systemax, Inc. Fibre, 9 Wilson HTM Investment Group, 30 France, 17 Misco, 18 Fixed-mobile convergence (FMC), 17 Windstream Corp., 5, 13 Hadoop, 31 P IP, 4, 12 Hosted Solutions, LLC, 5, 13 Wipro, 11, 12Pacnet, 7 Java, 7, 20, 30 Mozilla, 13PAETEC Holding Corp., 5 YPhilippine Long Distance Telephone Co. MPLS, 4 Yahoo!, 31 (PLDT), 9 PHP, 20Portugal Telecom, 17 Python, 20 R&D, 4 Ruby on Rails, 20 Virtualisation, 4, 12, 25, 30, 31ContactsEMC² Market Mettle LtdRichard Bradbury, Tim Lamb,Director Telecoms & Service Providers, Client DirectorEurope, Middle East & AfricaEmail: bradbury_richard@emc.com Email: tim.lamb@marketmettle.com +44 (0)20-8758-6075 Tel: +44 (0)7779-713-415Address: EMC² Computer Systems (Europe) Ltd Address: Market Mettle Limited EMC Tower 34 Buckingham Palace Road, Suite 53, Great West Road, Brentford London SW1W 0RH Middlesex TW8 9AN, United Kingdom United Kingdom