Tag: Cloud

Cloudy Netsuite delivers final results  

grandpa_simpson_yelling_at_cloudSome Netsuite shareholders might be relieved that the outfit could be bought by Oracle – the outfit’s last financial results were not that great.

The Cloud-based ERP outfit announced its last quarter results before it joins Ellison’s team and while it has continued to grow it is also showing increased operating overheads and losses. In other-words if it had not been bought out it could be in for some serious restructuring if it is going to continue.

NetSuite reported a third quarter loss of $34.1 million compared to $37.7 million a year earlier, on revenue of $243.9, up 26 percent. Costs increased to $50.2 million compared to $44.3 million.

The $9.3 million buyout needs to be approved by shareholders on 4 November. Surprisingly, shareholders don’t like it and the meeting could be contentious.  The feeling is that Ellison and the Netsuite board have  undervalued the company. We would have thought that they only have to look at the numbers to see that it is probably a good idea.

The Netsuite board seems to think the shareholders will go for it. They have said that this is the last time that the company would be making the figures public.  After all it is going to be part of Ellison’s empire if the vote goes ahead.

Wipro to buy Appirio

overview-2xIndian outsourcing giant Wipro is going to write a cheque for half a billion dollars to buy cloud services powerhouse Appirio.

The $500 million all-cash acquisition is expected to close by the end of the year.

Wipro said that bringing Indianapolis-based Appirio’s 1,250 global employees on board will create one of the world’s largest cloud transformation companies. This would make it the partner of choice for clients looking to modernise their processes and platforms on next-generation cloud applications.

Chris Barbin, Appirio’s CEO, said in a statement that if you combine Wipro’s global scale and deep digital focus with Appirio’s transformative worker and customer experience expertise, and best in class team, brand and partners, you create a formidable force in the industry.

“Our aim is to dominate the market and claim the top spots in industry Net Promoter Score, market share, and best places to work.”

Wipro’s existing Salesforce and Workday cloud applications practices will be consolidated under the Appirio brand and structure. Barbin will lead the expanded business,.

Appirio is a close chum of Google and created the Topcode marketplace that connects more than a million designers, developers and data scientists around the world with customers. It works with leading brands such as Coca-Cola, eBay, Facebook, Home Depot, Stryker, Johnson Controls, Cardinal Health and Sony PlayStation.

Appirio was founded in 2006 and incubated inside Salesforce’s San Francisco headquarters. The company today has offices in Indianapolis, San Francisco, Dublin, London, Tokyo and Jaipur, India.

The systems integrator has seen its revenue grow from $137 million in 2013 to $178 million in 2014 to $196 million in 2015, according to a filing with the Securities and Exchange Board of India.


Google buys Apigee for $625 million in cloud plan

grandpa_simpson_yelling_at_cloudGoogle is buying software development toolmaker Apigee for $625 million, to improve its cloud-based businesses offerings.

Alphabet’s Google has agreed to pay a 6.5 percent premium to Apigee’s shareholders and the deal will be completed by the end of the year.

For those who came in late, Apigee sells a platform that aids companies manage APIs to help developers build software that talks to each other and shares information without revealing the underlying code. APIs have become an integral part of cloud software development, allowing one application to pull data and use services from multiple other programmes.

Diane Greene, senior vice president of Google’s cloud business wrote in her bog: “The addition of Apigee’s API solutions to Google cloud will accelerate our customers’ move to supporting their businesses with high quality digital interactions.”

Apigee has customers which include Walgreens Boots Alliance, AT&T, Live Nation Entertainment Inc. and Burberry Group. Green said that Walgreens uses Apigee to offer APIs and analyse how the tools are being used.

Google has been improving enterprise-focused products, having lagged behind Amazon.  and Microsoft in flogging public cloud computing software.

The Apigee acquisition will also help support Google’s own set of APIs, which include ones that allow developers to pull information from YouTube as well as the Translate and Maps software to imbed in their own apps.

IT managers think the cloud is more secure

PAY-Lion-King-cloud-MAINHalf of IT managers think they will be more secure on the cloud than having their own data centres

According to a SADA Systems study which asked 200 enterprise IT professionals regarding their use of cloud services, 51 percent of the respondents said data security is better in the cloud, while 58 percent cited the cloud as “the most secure, flexible and cost-effective solution for their organizations,” according to SADA Systems.

Tony Safoian, president and CEO at SADA Systems, said this was a reversal of enterprise sentiments since the cloud’s early days when security was a significant adoption obstacle.

The supplier no longer has to prove to customers that the cloud was cost effective, not a passing fad and secure.

Instead, the cloud discussions now revolve around what workloads will move to the cloud, on which platforms will they reside and who will help get them there, Safoian noted.

As for the latter problem, 43 percent of the IT managers SADA Systems surveyed said they have and will continue to use third-party consultants to manage public cloud infrastructure.

In addition, enterprises are asking about what business advantages they can obtain in moving to the cloud, Safoian added.

In other SADA Systems findings, half of survey respondents said they are likely to increase public cloud use by at least a quarter over the next two to three years. Another quarter of the IT professionals polled said they would increase their public cloud use by 50 percent during the same time span. More than 84 percent of respondents said they are using public cloud infrastructure today, and 45 percent of the companies surveyed said their cloud migrations took three to six months. Another 23 percent said the migration took less than three months.

Rackspace rumoured to be up for grabs

grandpa_simpson_yelling_at_cloudThe dark satanic rumour mill has manufactured a hell on earth yarn claiming that the cloudy hosting provider Rackspace is going to be acquired.

The Wall Street Journal first reported Thursday that a deal with a private equity firm was imminent. Friday, a Reuters story said Apollo Global Management was working on a deal with the San Antonio-based company that could be worth more than $3.5 billion.  Needless to say it has not happened yet.

The outfit has had a few problems expanding and had been looking to bring in private equity, regroup or restructure.  There have been rumours for ages that they were ripe for the picking with a telecom provider thinking of buying them at one point.

But it seems that the company, despite having good offerings, is having a job saying anything relevant .

In May 2014, Rackspace informed the Securities and Exchange Commission that it had hired Morgan Stanley to formally explore a merger or acquisition. That September, Bloomberg News reported CenturyLink was looking to buy the company.

Speculation about potential suitors fizzled after Rackspace removed itself from the market and was unhappy with the offers it had received.

Amazon and Microsoft are the cloud kings

PAY-Lion-King-cloud-MAINAmazon Web Services and Microsoft are the rulers of the public cloud, according to beancounters at Gartner.

The research firm’s “Magic Quadrant” annual report surveys the amount and type of cloud computing services offered for rent by big companies. However this year it appears to be a two horse race between Amazon and Vole. Amazon is coming first, probably because it was first out of the gate,  while Microsoft continues a strong push at second.

Google, IBM, VirtuStream (part of EMC), CenturyLink, Rackspace and VMware all have a horse running but are a long way down the field.

Amazon’s poured shedload of cash into its $10 billion a year business. AWS “has the largest share of compute capacity in use by paying customers — many times the aggregate size of all other providers in the market,” according Big G.

Last year, AWS ran more than 10 times the cloud compute capacity as the next 14 cloud players combined. Asked whether that means Amazon’s dominance has held steady, grown, or decreased year over year, Gartner IT managing vice president Rakesh Kumar said that the research firm does not have the exact comparable figure, but that it is “reasonable to assume” that AWS has maintained the same lead this year.

Last week, Gartner released another report showing Amazon dominating the cloud storage market as well.

Google has been trying hard to win market share from the other two powers and to prove that it is serious about the public cloud market. Google remains the third largest player by Gartner’s measures, but it has slipped a bit relative to the top.

Google’s strengths lie in its big data analytics and machine learning technologies that it has used internally and is now offering to the public at large. Even AWS supporters love to use Google BigQuery and Bigtable, to parse and explore big amounts of data, for example.

Google has also made some strides entrenching its view of container management, as embodied in Kubernetes, to outside players. Containers, are a modern way to combine all the services needed for a software application into a portable unit that can, in theory, run on a company’s internal servers, on Google, or some other public cloud.


Cisco writes a cheque for cloud-lock

Cisco Kid Networking Tsar Cisco has written a $293 million cheque for cloudy security outfit CloudLock.

CloudLock provides cloud access security tech, and analytics on user behaviour and sensitive data for cloud services.  Cisco said that the acquisition will close in the first quarter of fiscal year 2017 and the  CloudLock team will join Cisco’s Networking and Security Business Group.

It will be ruled by Senior VP and general manager David Goeckeler.

Cisco Corporate Development’s Rob Salvagno said the acquisition will boost security for companies seeking to migrate to the cloud. In fact Cisco is buying rather a lot of cloudy security outfits lately.

It bought Lancope for $452 million, the Portcullis Computer Security for an undisclosed sum, and OpenDNS for $635 million.



Paypal dumps cloud supplier for not spying

paypal-logoGermany’s Seafile cloud suppler  claims it was forced to stop using PayPal because it refused the payment company’s illegal demands to spy on its users’ data.

Seafile is a Dropbox rival and it told its customers that they would no longer be able to pay for the service using PayPal—the only payment method that the company had in place.

CEO Silja Jackson said the outfit was looking into alternative payment services, but currently it was running a cloud service and not being paid.

Seafile was founded in 2009 by students at Tsinghua University in Beijing, and has gained enough traction in Germany to form a subsidiary there. It offers an open-source file-synchronization system that organisations can install on their own servers—for a fee, if they want enterprise features—and last October the firm decided to also start offering a paid version that’s hosted on Seafile’s German servers, for individuals and small businesses.

Jackson said PayPal contacted Seafile in early June with a questionnaire about its service, and by posting a notice on Seafile’s PayPal account to say it was violating an unspecified part of PayPal’s terms of use.

Jackson thought that PayPal classified Seafile as a service for illegal file sharing. She told them that since it did not offer free accounts and that customers needed to disclose their address when signing up.

PayPal then demanded that Seafile monitor its customers’ data traffic and files for illegal content, and send the payment firm detailed statistics about the types of files synchronised over the service.

Jackson said that would violate privacy laws as giving PayPal statistical information would violate customers’ privacy rights.”

Legal experts have confirmed that had Seafile done as it was told it would have been taken to the cleaners under EU and German privacy laws. When Jackson told PayPal that Seafile was being required to break EU privacy laws, the outfit dropped them like a hot potato.

Oracle’s whistleblower suit opens a can of worms

5707c0e99b6aa.imageThe “whistleblower” who claimed she was told to fudge cloud Oracle’s cloud accounts has done something that Larry Ellison’s PR team should have expected  – it has put a focus on the database maker’s cloud accounting policies.

The lawsuit, filed on Wednesday in US District Court in San Francisco by former Oracle senior finance manager Svetlana Blackburn, also revives longstanding questions about proper accounting when software and computer services are bought on a subscription basis rather than as a single package.

Blackburn said she was required by Oracle management to “fit square data into round holes” to make Oracle’s cloud services’ results look better. She alleges that her bosses instructed her to add millions of dollars of accruals for expected business “with no concrete or foreseeable billing to support the numbers.”

Oracle is reassuring everyone that its numbers are correct, but the fact Blackburn claims she was fired by Oracle for complaining means that the allegations are not going away. Oracle is compounding the problem by threatening to sue Blackburn and claiming she was fired for poor performance.

Blackburn does not use the word “fraud” in her lawsuit, but it might be confusing for a lay person to spot the difference. It is clear Oracle’s sales force has been offered big incentives to book cloud deals. Cloud software is growing fast while traditional software sales slow, companies have an incentive to play up their ability to operate in the cloud.

By not handling Blackburn correctly and even escalating the situation, Oracle’s image is suffering and its shares fell almost  four percent the day after the lawsuit was made public.

It is highlighting a problem that software companies have in booking software sales as cloud or traditional.

The most nebulous part of cloud accounting concerns situations where the customer buys a product that can be used partly in the cloud, and partly on its own hardware.

US accounting rules state that in cases when use is mixed, companies should allocate the revenue between traditional, or licensed software; and cloud, or hosted software.

US Securities and Exchange Commission has investigated IBM over how it reports its cloud-computing revenue although this went no-where. Salesforce was also investigated which ultimately led to the company restating its 2002 and 2003 results, contributed to a delay in Salesforce’s 2004 initial public offering.

But it can get messier. In 2006, software maker Computer Associates had to restate past financial results after an internal audit found issues concerning stock options and how the company booked some subscription revenue. Its former chief executive, Sanjay Kumar, pleaded guilty to securities fraud in 2006 and was sentenced to 12 years in jail.

This was clearly something that Oracle does not want, but for some reason its legal team and PR Team did not think about this particular fall out. We predict that things are going to get a lot worse for Oracle, even if it ultimately wins.

Exclusive poaches Arrow and Computerlinks’s David Ellis

dave-ellis-arrow-formerly-computerlinks-2014-320x320French-based Exclusive Group has poached Arrow executive David Ellis to head up the distributor’s global services.

Exclusive says Ellis will use his experience in supporting new and disruptive technologies to roll out new services offerings for the cybersecurity marke, which probably means the outfit’s cloud services.

Barrie Desmond, COO of Exclusive Group, said that the company was  seeing  more global deals and our ability to support these will add even more value to our vendor and channel partners.

“Global services are a key part of our growth strategy over the next three to five years and Ellis will play a crucial role in achieving this. I’m pleased to welcome him on board and looking forward to working with him for what promises to be an exciting journey ahead.”

Ellis  was a key manager for Arrow in EMEA, responsible for vendor business development and the roll-out of new propositions. Before that, he was director of New Technology and Services at Computerlinks before its acquisition by Arrow. In his 13 years with Computerlinks he built and grew an e-Security offering before assuming responsibility for services, emerging technology and market sectors.

He said that Exclusive has built an enviable reputation for disrupting traditional value-add distribution and I’m really excited to now be part of this.

“In my time within the industry I’ve identified and brought to market a number of new technologies and services, and have seen the cybersecurity market evolve at breakneck speed. I can’t wait to start helping our vendor and channel partners achieve even more value from their relationship with Exclusive Group through new global service offerings.”


Companies reject cloud for fog

Fog.PNGEnterprise CIOs are starting to twig that the cloud is not all it is cracked up to be and are looking at a new buzzword – the Fog –  instead.

One of the problems with the cloud is that many of the services and apps, and data used in critical decision-making are better kept on premise or in smaller enterprise data centres. Cloud goes against the demand for mobility too as the data needs to be kept closer to the machine.

Now Cisco, Dell, Microsoft, Intel and ARM, as well as researchers at Princeton University, are betting that the future of enterprise computing will be a hybrid model where information, applications and services are split between the cloud and the fog. Cisco came up with the name “fog computing” you can probably tell.

Cloud based data centres are huge and are working ok for now. But when, and if the IoT appears on the scene things are going to get messy.

When everything from cars and drones to video cameras and home appliances are transmitting enormous amounts of data from trillions of sensors, network traffic will grow exponentially. Real-time services that require split-second response times or location-awareness for accurate decision-making will need to be deployed closer to the edge to be useful, something which would cause the cloud to break.

The only thing which will save the cloud really is increased technology,  or coming up with a hybrid approach to data. That will enable distributed fog networks in enterprise data centres, around cities, in vehicles, in homes and neighbourhoods, and even on your person via wearable devices and sensors.

If this sounds like the old “distributed computing” over “Centralised computing” debate which happened as the Internet was starting to arrive, it pretty much is. What Cisco is suggesting is incredibly complex networks.

IBM announces blockchain services for cloud

grandpa_simpson_yelling_at_cloudBig Blue has  announced new services to help companies design and develop blockchain technology in a secure environment in the cloud.

Blockchain is the tech behind bitcoin and does a shedloads of functions such as recording and verifying transactions. The big idea is that the it can create cost-efficient business networks without requiring central control.

Jerry Cuomo, vice president, Blockchain at IBM, said in a statement that the only problem with blockchain is concerns about security.

“While there is a sense of urgency to pioneer blockchain for business, most organisations need help to define the ideal cloud environment that enables blockchain networks to run securely in the cloud,” he said.

IBM said it is addressing security problems in several ways, including cloud services with the highest Federal Information Processing Standards (FIPS 140-2) and Evaluation Assurance Levels (EAL) in the industry to support the use of blockchain in government, financial services and healthcare.

The technology company also announced the opening of an IBM “Garage” in New York and London. These “garages” are similar to research labs on the blockchain created by several major financial institutions over the past year. IBM’s garages are dedicated to helping clients design and develop their blockchain networks, said Cuomo.

Garages in Tokyo, London and Singapore will also open in the coming weeks to let customers talk to IBM experts on the design and implementation of blockchain for business.

Comparex sales deal looks dead in the water

charly_poseMicrosoft enterprise licensing house Comparex is having difficulty selling itself off.

The Raiffeisen Banking Group-owned reseller hired investment banker Jefferies to manage a sales process in May and by September last we heard there were two private equity firms left in the running.

An agreement was expected for the end of 2015 but the dark satanic rumour mill claims that the talks collapsed and Comparex was left without a buyer.

The private equity buyers did not see licensing or software asset management strategy as being a good deal any more. Microsoft thinks that everyone will be using consumption-based licences through Azure and Office 365 making an Enterprise Agreement pointless.

Vole has reduced the profits licensing houses can generate from license reselling and recently confirmed that it will gradually kill off EAs in favour of Microsoft Products and Services Agreements and Cloud Solution Partner purchasing models.

Comparex resells software from 70 other vendors including Adobe, CA, IBM, Citrix and VMware but its primary vendor is Vole.

Peruni Holdings, which is a system integrator owned by Raiffeisen Bank, has owned Comparex since 2011.

Amazon sticks Jassy on Cloud

andy_jassy_amazonAmazon has promoted Andy Jassy to the job of CEO of the industry’s top public cloud infrastructure business.

He has already been doing the job, more or less, since he founded AWS in 2003 with a team of 57 people and has presided over the most dominant cloud business in the world, with more than a million customers in 190 countries.

Jassy’s promotion, which Amazon announced in a blog post comes after CEO Jeff Bezos revealed in his annual letter to shareholders earlier this week that AWS is on track to reach $10 billion in sales this fiscal year.

Bezos said in the letter that AWS is larger and growing faster than Amazon itself was after its first decade in business. He also pointed to AWS’ addition of 722 “significant” new features and services in 2015 — 40 percent more than it added in 2014 — as evidence that AWS is innovating faster than any other cloud vendor.

AWS, along with Amazon Prime and Marketplace, are examples of big bets the company has made that have paid off. Jeff Wilke, senior vice president of Amazon’s consumer business and the executive in charge of those units, has also been promoted to the title of CEO Worldwide Consumer, Bezos said.


Microsoft’s Azure cloud growing

Every silver has a cloudy liningMicrosoft’s Azure cloud computing platform is growing like topsie.

Vole announced that it was signing up 120,000 new business customers and developer subscribers monthly.

Scott Guthrie, executive vice president of the company’s Cloud and Enterprise group, said at a developer conference in San Francisco that more than four million developers are also registered to use Microsoft’s developer tools. In January, Microsoft claimed it had 3.8 million developers registered.

Microsoft is focusing on business services and its Azure cloud services platform is a major competitor to Amazon.com’s AWS. Both companies have huge server banks which run services and software for customers looking for added flexibility, lower costs and reliability.

Vole has been getting its foot in the door thanks to parceling up Azure services through its channel and is doing quite well at getting its cloud to rain on Amazon’s parade.