3. The
Sponsored by
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Report
Issue #15 Jun/Jul11
Covering: June / July 2011
Next issue: May 2011 Executive brief More speculation emerged over
a move by Amazon Web Services
to establish on-the-ground cloud
AMERICAS: US telcos’ enthusiastic
1 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 in
3 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 Australian
3 Americas acquisitive rival CenturyLink completing
reported that AWS is “canvassing” the
6 APAC the takeover of hosted infrastructure
market for a data centre partner, with a
13 EMEA player Savvis it announced in
view to launching services in early-2012.
April 2011. Communications and IT
Meanwhile, Australian players continued
20 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, releasing
30 Markets; a suite of virtual infrastructure propositions,
NTT’s Dimension Data IT services
Players shortly before being acquired by rival
business continued to expand
32 Trends telco Windstream Communications, which
its cloud presence, fresh from its
was already pushing into cloud services.
recent buyout of international cloud
35 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.]
5. Sponsored by
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Issue #15 Jun/Jul11
Service providers
Service providers AMERICAS
New York Stock Exchange
Technologies
(NYSE Technologies),
Americas the commercial technology
division of exchange
operator NYSE Euronext,
unveiled a specialised
AT&T talks up hybrid cloud focus cloud-based solution for
financial traders. The EMC-
Taking internal enterprise cloud to the masses and VMware-supported
John Stankey, Chief Executive and President of AT&T Business Solutions, Capital Markets
Community Platform o ering
the 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 intneded
as a key enabler and di erentiator as it expands into the emerging hybrid cloud space.
to address trading companies’
“unique concerns”, with regard
Stankey 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 Technologies
Provider 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 will
characterised the services as taking the benefits of internal enterprise solutions to enable “rapid provisioning
of computing power and
a much wider market — namely, companies that “don’t necessarily have the large market data”, and be
scale 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 Provider
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. 3
6. The Cloud Sponsored by
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Service 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 Provider
4 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
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Issue #15 Jun/Jul11
Service providers
PAETEC flags cloud expansion plans
PAETEC 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 a
parallel expansion of PAETEC’s infrastructure, through which it aims to add 13 new
US 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 rival
telco Windstream Communications, which is itself pushing into cloud services
following its recent takeover of infrastructure-as-a-service player Hosted Solutions
(Cloud Service Provider Report, #10 and #11).
[Further reference: PAETEC launches powerful cloud computing
portfolio and nationwide data center expansion — PAETEC, 24 May 2011;
Windstream to acquire PAETEC — Windstream, 1 August 2011.]
8x8 ups cloud presence with channel, VCE deals
US IT and telecoms service provider 8x8 outlined an “acceleration” of recent expansion
in the cloud market, with the formation of a new channel programme designed
to push its hosted services, and a supporting technology partnership with the
Virtual Computing Environment Company (VCE) formed by Cisco Systems and EMC.
The distribution initiative, called the 8x8 Business Partner Program, will focus
on signing up “agents, resellers, and traditional hardware VARs [value-added
resellers]” to market the company’s cloud service portfolio, which currently includes
private cloud-based compute and hosted o erings, as well as voice and video
communications 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 selling
hardware-based solutions to expand marketing of services.
The VCE deal, announced shortly after the programme’s launch, was presented
by 8x8 as a step designed to aid expansion of its service portfolio, enabling it to
launch infrastructure-as-a-service (IaaS) applications across Vblock pre-calibrated
technology stacks developed by the vendor. 8x8 claimed that adoption of
Vblocks will be complementary to its recent acquisition of Zerigo, a provider
of 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 “larger
enterprise 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 Provider
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
8. The Cloud Sponsored by
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Issue #15 Jun/Jul11
Service providers
APAC
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 Provider
6 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
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Issue #15 Jun/Jul11
Service providers
NEC, IBM, Fujitsu go head-to-head APAC
A tie-up would also pitch Fujitsu against several existing alliances formed by Japanese service provider
Internet Initiative Japan
regional and international providers seeking to expand cloud services into China,
(IIJ) released an application
including key rivals IBM and NEC Corporation. programming interface (API) to
allow customers to integrate
NEC formed a cloud-focused joint venture with Chinese service provider Neusoft in the GIO storage-as-a-service
o ering it launched in 2010
August 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 own
in 2016 (Cloud Service Provider Report, #9 and passim). applications. The API for the
HTTPS/REST interface allows
Asian 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 compatible
Fujitsu looks to Chinese market — China Daily, 7 July 2011.] with the o ering, and claims to
allow users to change storage
FET, Quanta team up to target China volumes “instantaneously”.
[Further reference:
IIJ to launch IIJ GIO storage
Taiwanese operator Far EasTone Telecom (FET) and hardware vendor
service FV/S with REST API
Quanta 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 initially
focus on compute services, before “tapping [the] cloud platform and cloud
software markets”. FET will provide the communications element and Quanta the
IT side, the companies said. They are also reported to be hopeful that other hardware
and software suppliers will join the partnership.
FET is a member of Taiwan’s Far EasTone Group, which is a liated to
China Mobile, the country’s largest telecoms player, but there was no mention of
any involvement by the latter in the partnership.
Chunghwa Telecom, a domestic rival of FET, has also been actively expanding its
cloud computing reach into China, recently forming an alliance with China Mobile
competitor China Telecom (Cloud Service Provider Report, #14).
[Further reference: Far EasTone, Quanta partner on enterprise
cloud 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 Provider
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
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BrightHost taps Equinix platform for Asia expansion APAC
Japanese IT service provider
Australian hosted service provider BrightHost partnered with US data centre NEC formed a partnership with
Amata Corporation, a Thai
operator Equinix, to enable expansion of cloud computing o erings to the latter’s
property company, to provide
infrastructure platform in Hong Kong. cloud services to companies
located in the latter’s
The move will see Brighthost use the provider’s Platform Equinix o ering, based in Amata Industrial Estate — the
the 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 virtual
a 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 SaaS
and, other hosted and professional services. Going forward, the company has said it is cloud services agreement
planning 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” of
the cloud industry, o ering hosted infrastructure and interconnection capacity to
service 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 cloud
solutions to Hong Kong — Equinix, 30 May 2011; New cloud contender BrightHost
unveils Asia expansion plan — Asia Cloud Forum, 1 June 2011.]
Dimension Data, Hutchison ink HK cloud alliance
Local fixed-line operator Hutchison Global Communications (HGC) formed a
partnership with Dimension Data (DiData), the IT services business of Japanese telco
NTT, to market cloud-based infrastructure services to enterprises in Hong Kong.
Under the Memorandum of Understanding, HGC will market Dimension Data’s
onecloud cloud service suite to local businesses, using its data centres and
fibre backbone. Applications to be provided will include: “secure enterprise cloud
hosting 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 SaaS
tools for both small- and medium-size enterprises and “specific vertical industries”. HGC
already 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 formed
tie-ups on the o ering with Indian state telco Bharat Sanchar Nigam Ltd, and Filipino
incumbent Philippine Long Distance Telephone Co. (PLDT) in 2010 (Cloud Service Provider
Report, #9 and #13). DiData parent NTT indirectly holds a 21% stake in PLDT.
[Further reference: Dimension Data partners Hutchison Global Communications to
o 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 Provider
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
12. The Cloud Sponsored by
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Issue #15 Jun/Jul11
Service providers
APAC 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 Provider
10 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
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Issue #15 Jun/Jul11
Service providers
Wipro tips manufacturing for cloud growth APAC
New Zealand-based IT
Indian 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, on
and 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 services
Senior 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 computing
Bala 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 the
enterprises that are the quickest to embrace cloud services, with particularly
high demand expected from Asia-Pacific companies as they shift towards
“knowledge-intensive manufacturing”. IDC recently cited cloud computing
as a technology that Asian manufacturers see as o ering potential to
“improve productivity, e ciency, and top-line growth”, echoing an earlier report by
Frost & Sullivan (Cloud Service Provider Report, #8 and #10).
Wipro, which is itself a large maker of IT and other hardware, cites the manufacturing
market as its third-largest vertical, saying it produced 15% of its IT services revenue
in FY10–11. Its two largest categories — financial services (27%) and ‘retail and
transportation’ (15%) — also represent areas where Wipro has been noticeably
active in pushing cloud services, releasing customised SaaS applications for
retailers in 2010, and more recently highlighting large financial services players
as 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 Provider
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. 11
14. The Cloud Sponsored by
Service
Provider Report
Issue #15 Jun/Jul11
Service providers
APAC 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 Provider
12 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 providers
EMEA EMEA
TRusted Ecosystem
for Standardised &
NaviSite expands cloud infrastructure to UK Open Cloud-based Resources
(TRESOR), a consortium
Hosted 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 of
The move will see NaviSite provide enterprises in the UK and Europe with local delivery Economics and Technology as
of its Managed Cloud Services (MCS) suite — a family of usage-billed, hosted services part of a competition around
cloud computing application
based on its flagship NaviCloud infrastructure (Cloud Service Provider Report, passim).
development for small- and
It creates the first on-the-ground presence for NaviSite’s cloud business in Europe. medium-size enterprises and the
public sector. The group, which
NaviSite 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 of
by long-distance broadband connections to o shore data centres” — pressures the Sicheres cloud computing
that 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 €4.5m
deployed 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 exchanging
The expansion follows NaviSite’s April 2011 acquisition by US cable television
data for doctors, clinics, and
and broadband operator Time Warner Cable (TWC) — one of a string of recent health insurance funds that
cloud purchases by US telecoms players, including: CenturyLink’s acquisition complies with all the applicable
laws, and data privacy and
of Savvis; Verizon Communications’ takeover of Terremark Worldwide; security regulations, as well
and Windstream Communications’ buy out of Hosted Solutions (Cloud as the respective policies and
regulations of the individual
Service 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 partners
enterprise 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 Provider
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
17. Sponsored by
The Cloud
Service
Provider Report
Issue #15 Jun/Jul11
Service providers
GTS 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 cloud
flagged its entrance into the infrastructure-as-a-service (IaaS) market with the release
infrastructure and application
of a new product group, called GTS Virtual Server Hosting. suite for small- and medium-size
enterprises (SME). The service
The suite, based on a recent deployment of Cisco Systems’ Unified Computing System is designed for firms with
server platform by GTS, includes two private cloud-based IaaS o erings: a lower end, one–150 workstations, and
incorporates on-demand data
o -the-shelf proposition for smaller businesses, called Virtual Private Server (VPS); backup, o ce, and web security
and a more malleable Virtual Hosting Environment solution for “large enterprises and applications. Three versions
of the service are available
public sector organisations”. The latter enables customers to provision multiple VPSs, — a basic option with software
depending on requirements, as well as o ering additional services, including a “dedicated” held on the o ce intranet; a
solution 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, hybrid
GTS said it will offer the services to clients in its five primary markets in Central
o ering, which will not become
and 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 complete
and 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 regional
data centre footprint and service portfolio, via consolidation opportunities and an expansion Ireland-based managed
of its existing facilities (14 centres across the five markets mentioned above). It subsequently IT service provider
Hibernia Evros
acquired Hungarian data centre service provider Interware, and Czech provider Technology Group launched
Sitel 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 Provider
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
18. The Cloud Sponsored by
Service
Provider Report
Issue #15 Jun/Jul11
Service providers
EMEA 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 Provider
16 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.
