The big cloud providers need the channel to help widen sales but need to be straighter with the channel and build trust if they are going to deepen the relationship throughout what is set to be a year of growth, Canalys said.
The problem is that Microsoft is US company and its country delights in spying on its allies. The EU fears that the NSA could get a court order and force Microsoft to hand over data from its European clouds and force it not to tell anyone.
Microsoft has come up with a wizard wheeze by creating a product called Azure Deutschland — a German cloud region that will offer Azure services that come not directly from Microsoft, but from the German
data trustee Deutsche Telekom.
It not only makes sure that data remains in Germany, but also means that Microsoft can’t actually get to the data itself. By operating under a German company, the NSA can’t force Vole to do squat.
In fact, while the region offers redundancy and backup, it does so through a private network to ensure that none of the bits being backed up even go through the public Internet where they might stray onto foreign soil.
Germany has some of the strictest data privacy protection laws on the books, and Microsoft said that Deutsche Telekom will have strict protocols regarding when Microsoft is allowed access, even for support:
The first is called the Unlimited Photos Plan – it comes with a free three month trial, then a subscription of $12 a year – this lets you store as many photographs as you like on the Amazon Cloud and includes 5GB of extra storage for videos, documents or other files.
The second is called the Unlimited Everything Plan – this also comes with a three month trial at no charge then a subscription of $60 a year. As the name implies, it lets you store all of your stuff in Cloud Drive.
Existing members with a Prime subscription already can use unlimited photo storage but can add a subscription to the Unlimited plan to store everything else too.
Amazon is now a considerable player in the IT business – although many people can buy CDs, books and the like – it also offers services for enterprise players too, particularly in the cloud.
The new California data centre marks the Chinese company’s latest expansion onto an US market dominated by Amazon, Microsoft and Google.
Alibaba’s Aliyun cloud division intends the new data centre to cater initially to Chinese companies with operations in the United States. Later it will target US businesses seeking a presence in both countries.
Ethan Yu, a vice president at Alibaba who runs the international cloud business said that it was all part of Alibaba’s international expansion plans. The next stage would be a cloud on the East Coast, or somewhere in the middle of the US.
Aliyun is similar to Amazon Web Services and was part of the company’s in-house technical infrastructure. It has since expanded to lease processing and storage space for small and medium Internet businesses in China.
Aliyun, also known as Alibaba Cloud Computing, holds about a 23 percent market share in the Chinese market. It faces both Chinese and foreign competitors, from carriers like China Telecom to Microsoft and Amazon. Its existing data centers span the Chinese cities of Hangzhou, Qingdao, Beijing, Shenzhen and Hong Kong.
Apparently the outfit has set itself a target of making $40 billion a year from cloud, big data, security and other growth areas by 2018.
The target was mentioned at the company’s annual investor meeting in New York yesterday and is the first hint of a serious “cunning plan” since IBM moved away from its previous strongholds in hardware and servers.
The $40 billion will come from areas which IBM calls its “strategic imperatives,” namely cloud, analytics, mobile, social and security software.
That would represent about 44 percent of $90 billion in total revenue that analysts expect from IBM in 2018.
Those businesses generated $25 billion in revenue for IBM last year, or 27 percent of its total $93 billion in sales.
The company said it would shift $4 billion in spending to its “strategic imperatives” this year.
Revenue at IBM has gradually shrunk over the past three years as it sold off its unprofitable units in businesses such as low-end servers, semiconductors and cash registers.
IBM Chief Executive Virginia Rometty has said she was happy to jettison revenue from such unprofitable businesses, which she dubs “empty calories.” Although we would have thought that empty calories would be a good thing, because they would fill you up without meaning you put on weight.
IBM revenue has now fallen for the past 11 quarters, while earnings growth has been sporadic.
The company says its long-term plan is to hit “low single-digit” revenue growth and “high single-digit” growth in operating earnings per share. Last year IBM withdrew its long-term plan to hit $20 per share in operating earnings for 2015.
Things have not been going that well for IBM of late. It gets more than half of its cash from foreign parts, and the strong US dollar has hurt its sales by more than six per cent this year.
The deal is intended for use by the telecommunications industry.
The OpenStack software lets service providers virtualise core networks and network functions and is claimed to give better performance, scale and reliability.
Juniper said it will also provide complete service support for Canonical’s Ubuntu server operating system.
OpenStack is an open source cloud management platform with a large community of users, developers and founders, and Jupiter said over half of OpenStack instances run Ubuntu.
Both Juniper and Canonical have created Contral Cloud Platform which is a carrier grade OpenStack offering. Both companies will work on joint product development and marketing, and will work with their customers to include service provider needs in the cloud.
Under the deal, IBM will release what it described as the first wave of IBM MobileFirst for the iOS operating system.
The applications also support web services and big data and analytic abilities to the iPad and iPhone. IBM said MobileFirst for iOS is aimed at enterprise sized companies in banking, retail, insurance, financial services, telecomms, governments and airlines.
Customers who have already signed up include Citi, Air Canada and Spring.
Philip Schiller, a senior VP of Apple marketing, said: “The business world has gone mobile and Apple and IBM are bringing together the.. technology with the smartest data and analytics to help businesses define how work gets done.”
The apps are intended for secure environments, linked to core enterprise processes and analytics.
Apps include Plan Flight and Passenger for airlines, Advise and Grow for the banking sector; Retention for insurance companies; Incident Aware for law enforcement; Sales Assist for Retail and Expert Tech for the telecomms market.
That’s according to a report by market intelligence firm IDC, which said during the first half of this year, the market grew by 10.7 percent, compared to the first half of 2013.
IDC thinks the market will continue to grow in the next five years with a compound annual growth rate (CAGR) of 10.5 percent.
Areas of growth include mobile application development and device management, security software, systems software and engineering applications.
Shweta Baidya, a senior market analyst at IDC, said that large and small to medium enterprises want to curb capital expenditure and move into the cloud.
Virtualisation and cloud players like Vmware, Salesforce and Red Hat generated good business, and database and analytics companies including Teradata, Oracle, Qlik and others saw double digit growth.
IDC provided a pie chart which shows market share in the region.
Gartner said that cost and agility are the main reasons for SaaS cloud adoption by enterprises, based on a survey involving four countries in four regions around the world.
Joanne Correia, a research VP at Gartner, said that the most common reasons for using SaaS were to develop and test production and mission-critical workloads.
“We’ve seen a real transition from use cases in previous surveys where early SaaS adoption focused on smaller pilot projects. This is an affirmation that more businesses are comfortable with cloud deployments beyond the front office running sales force automation and email,” she said.
Of those surveyed, 44 percent thought overall cost reduction was the main reason for investment in SaaS. But CIOs and senior IT project managers rated adoption not only because of cost but because of operational agility and giving their businesses an advantage over competitors.
Gartner believes that few enterprises will completely migrate to SaaS and instead will mix that with traditional on premises deployment.
Outside of the USA, many enterprises still worry about security, privacy and “fear of government snooping”.
Traditional on premise deployments will shrink from 34 percent in 2014 to 18 percent by 2017.
The recipe is called Bluemix which although it sounds as it might be a kind of cement, is actually IBM’s platform as a service (PaaS).
Bluemix is intended to help build applications to use the benefits of cloud computing without stumbling into the quagmires of compliance, regulation and performance that are the baggage of public clouds.
It has introduced a private application programming interface (API) as part of Bluemix and that lets developers build cloud which connect data from legacy back end systems and link them to mobile and social networking applications.
Bluemix gives access to a cloud hosted in an IBM cloud centre, more or less anywhere across the world. Developers will be able to use services from IBM’s Bluemix catalogue including Watson APIs for data analutics and its Aspera data integration tools.
Customers will have the choice of using an IBM data centre in their own country, to avoid regulatory problems companies might face as well as giving better performance because public clouds have so-called “noisy neighbours”.
Last year, the European market was worth $390.5 million and is expected to steadily grow between 10 to 30 percent in the next five years.
The cloud is good for cost efficient services for documentation, storage and sharing patient information, the report said. Government moves to create healthcare information exchanges have given the cloud market in Europe and the USA a boost. In addition, quick deployment and easier management of IT staff are other perceived advantages of using the cloud.
But the move to the cloud is being hampered by a lack of standardisation in legacy systems, meaning that data migration is both expensive and cumbersome.
And there are also concerns about data preservation, security and portability, meaning that when healthcare IT buyers sign up with cloud service providers there must be service level agreements to guarantee reliability and data portability.