|By Ed Featherston||
|March 24, 2014 11:49 AM EDT||
There is a common phrase, often attributed as a Chinese proverb/curse, "May you live in interesting times." For those following the cloud technology space, we are definitely living in interesting times. In their latest magic quadrant report on IaaS, Gartner describes the market as still evolving and maturing. This would imply the market leadership is in flux, yet according to Gartner "AWS is the overwhelming market share leader, with more than five times the compute capacity in use than the aggregate total of the other fourteen providers in this Magic Quadrant." I would say that makes AWS an 800lb gorilla in the room that the competition must get by. Many of those competitors could be considered 800lb gorillas in their own right. Microsoft, IBM, Google are not small companies, yet AWS has managed to create a dominant position in the marketplace.
Can AWS maintain that dominance? Who among the other ‘gorillas' could potentially knock AWS from its perch?
The Big Public Cage Match, IBM vs Amazon
As one would expect, the original 800lb gorilla, IBM, wants to be the one to knock AWS from that perch. Early last year, Amazon beat out IBM for a lucrative four year $600M cloud contract with the CIA. IBM immediately filed a bid protest in February, which was partially upheld by the GAO in June (A Big Win for Big Blue). The battle between the two behemoths continued through the summer. IBM worked to strengthen its IaaS credentials with the acquisition of SoftLayer. In October, what appeared to be a successful bid protest by IBM was overturned by the US Court of Federal claims, and IBM withdrew its injunctive action (IBM Steps back from CIA deal). The battle continued in November when IBM started a significant ad campaign, claiming it held a larger cloud business than Amazon. This blitz included running ads on buses in Las Vegas during Amazon's premier re:Invent conference. In January of this year, IBM committed to a 1.2B investment to expand their global cloud footprint.
The battle has created very diverse views in the industry as to who will finally win. Rob Enderle wrote a very compelling piece on why IBM will win the war with Amazon Web Services. He points out in their over 100-year history, IBM has battled many other disruptive competitors - a fact I am well aware of, being a former employee of Digital Equipment Corporation. Digital (DEC) rose in the '60s, disrupting the mainframe computing industry with a disruptive concept, the mini-computer. DEC eventually rose to being the number two computer manufacturer in the world (behind IBM). DEC is now a fond memory as it was since acquired by Compaq (a PC manufacturer) who was later acquired by Hewlett-Packard. IBM putting you in their sights is not to be taken lightly.
On the flip side, a very good counter argument to that viewpoint was written by David Linthicum, in his article Amazon Web Services has no reason to worry about IBM. One of the key points David makes is the argument that IBM will have difficulty adjusting to selling the cloud service model. He points out "the more cloud services that IBM sells, the less money it will make." In essence, it will displace existing IBM hardware and software with its own "public cloud offering." Add into this viewpoint, IBM doesn't always win. When Oracle first came on the scene, it disrupted the database world, and IBM came out guns a blazing. Oracle has not gone anywhere.
What About the Other Gorillas?
With all the coverage the IBM/AWS cage match has gotten this year, sometimes it's easy to forget there are other significant players in this marketplace. These players are not sitting back and waiting for the results of the IBM / AWS battle. Gartner analyst Lydia Long, in Where are the challengers to AWS?, states: "I think there's a critical shift happening in the market right now. Three very dangerous competitors are just now entering the market - Microsoft, Google and VMware. I think the real war for market share is just beginning." Forrester echoes a similar viewpoint. When viewing the market through a lens of the services provided (compute, RDBMS, storage), Forrester analyst Jeffery Hammond sees Microsoft and Google making strong inroads in the RDBMS and storage services space. As with IBM, Microsoft and Google have deep pockets to compete in this space and are not going to give up without a fight. What I find telling is that both these analysts did not even mention IBM vs. AWS, which has been getting the majority of the public attention. Google just announced a partner program that includes three tiers of third-party vendors providing technical and consulting services for Google's cloud platform.
Verizon Joins the Battle
Last October Verizon announced a new cloud offering built from the ground up to compete with AWS and the other IaaS vendors. This offering is different from their existing Verizon / Terramark cloud offering. The new offering is based on technology from CloudSwitch, a company Verizon acquired a little over two years ago. Verizon hopes to differentiate their offering by allowing the client to define specific performance capabilities around compute, I/O, memory and storage. Verizon states their technology allows them to avoid the ‘noisy neighbor' problem seen from other vendors, a not so subtle swipe at AWS.
In January Verizon announced a partnership with Oracle for their cloud environment. "Beginning in the first quarter of 2014, Oracle customers will be able to license Oracle Database 11g and 12C, Oracle Fusion Middleware and Oracle Enterprise Manager to run in Verizon's Managed Hosting and Enterprise Cloud virtual infrastructures, according to a Verizon document that details the Oracle partnership." While AWS does provide the ability to use Oracle 11g in their environment, the addition of the middleware components could be a key differentiator for Verizon.
This by itself is not a game changer, but is a sign that Verizon is serious about competing in this space. Verizon has its sights squarely in AWS's corner. In its announcement Verizon noted that it will continue to expand partnerships and the ecosystem around its cloud offerings. It quickly demonstrated that was just the first salvo. Verizon announced this week that it is extending its partnerships with CloudBees and CloudFoundry, including committing a monetary investment in CloudBees through its venture arm.
Net Neutrality, Could It Be a Game Changer?
In 2010 the FCC adopted the Preserving the Open Internet, Broadband Industry Practices as a means to enforce the concept of net neutrality on the Internet. This was in response to the practice of a variety of broadband providers (including Comcast and Verizon) that were throttling bandwidth usage based on the source. Some of these sources could have been considered competitors. The FCC net neutrality rule had three key components:
- Transparency - providers must disclose network management and performance information
- No Blocking - providers may not block lawful content and services
- No Unreasonable Discrimination - providers may not unreasonably discriminate in transmitting lawful traffic
Now the federal appeals court has struck down that rule. The suit was brought by Verizon. It immediately raised a question in my mind. Does this mean Verizon, in theory, could throttle access to public cloud providers (such as AWS), and provide better access to their own public cloud services? Imagine the impact that could have on the marketplace. Verizon could effectively lock the other gorillas in a room and start their own room.
Will this happen? Not overnight, that's for sure. The FCC has already said they would appeal the decision. Additionally the court did give the FCC some wiggle room in modifying the rule in a way that would pass the courts muster. The battle over net neutrality is far from over, but how it finally gets resolved could have long-term impact for us and the public cloud providers.
Who Will Still Be Standing in Two Years?
One thing that is clear, the market is still in flux. Gartner predicts that one in four cloud providers will be gone by 2015. IBM has already demonstrated the consolidation direction with their purchase of SoftLayer. Concerns about the risk of a cloud provider still being around could start creating a self-fulfilling prophecy for the smaller vendors. The failure of cloud storage provider Nirvanix last year has put this concern at the forefront for many buyers. If the small vendors become acquired, or forced out of business over the next two years, we could easily end up with a room full of just the 800lb gorillas as the market shakes out. The question will then become, how many of these 800lb gorillas can we fit in the room?
In addition to all the benefits, IoT is also bringing new kind of customer experience challenges - cars that unlock themselves, thermostats turning houses into saunas and baby video monitors broadcasting over the internet. This list can only increase because while IoT services should be intuitive and simple to use, the delivery ecosystem is a myriad of potential problems as IoT explodes complexity. So finding a performance issue is like finding the proverbial needle in the haystack.
Dec. 3, 2016 06:30 AM EST Reads: 5,967
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life sett...
Dec. 3, 2016 05:45 AM EST Reads: 6,905
The WebRTC Summit New York, to be held June 6-8, 2017, at the Javits Center in New York City, NY, announces that its Call for Papers is now open. Topics include all aspects of improving IT delivery by eliminating waste through automated business models leveraging cloud technologies. WebRTC Summit is co-located with 20th International Cloud Expo and @ThingsExpo. WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web ...
Dec. 3, 2016 05:30 AM EST Reads: 1,194
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
Dec. 3, 2016 04:15 AM EST Reads: 1,704
Internet-of-Things discussions can end up either going down the consumer gadget rabbit hole or focused on the sort of data logging that industrial manufacturers have been doing forever. However, in fact, companies today are already using IoT data both to optimize their operational technology and to improve the experience of customer interactions in novel ways. In his session at @ThingsExpo, Gordon Haff, Red Hat Technology Evangelist, will share examples from a wide range of industries – includin...
Dec. 3, 2016 02:30 AM EST Reads: 1,518
WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web communications world. The 6th WebRTC Summit continues our tradition of delivering the latest and greatest presentations within the world of WebRTC. Topics include voice calling, video chat, P2P file sharing, and use cases that have already leveraged the power and convenience of WebRTC.
Dec. 3, 2016 02:15 AM EST Reads: 1,489
"We build IoT infrastructure products - when you have to integrate different devices, different systems and cloud you have to build an application to do that but we eliminate the need to build an application. Our products can integrate any device, any system, any cloud regardless of protocol," explained Peter Jung, Chief Product Officer at Pulzze Systems, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 3, 2016 01:45 AM EST Reads: 765
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at 20th Cloud Expo, Ed Featherston, director/senior enterprise architect at Collaborative Consulting, will discuss the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
Dec. 3, 2016 12:30 AM EST Reads: 1,519
"Once customers get a year into their IoT deployments, they start to realize that they may have been shortsighted in the ways they built out their deployment and the key thing I see a lot of people looking at is - how can I take equipment data, pull it back in an IoT solution and show it in a dashboard," stated Dave McCarthy, Director of Products at Bsquare Corporation, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 2, 2016 11:15 PM EST Reads: 903
IoT is rapidly changing the way enterprises are using data to improve business decision-making. In order to derive business value, organizations must unlock insights from the data gathered and then act on these. In their session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, and Peter Shashkin, Head of Development Department at EastBanc Technologies, discussed how one organization leveraged IoT, cloud technology and data analysis to improve customer experiences and effici...
Dec. 2, 2016 08:30 PM EST Reads: 4,979
Fact is, enterprises have significant legacy voice infrastructure that’s costly to replace with pure IP solutions. How can we bring this analog infrastructure into our shiny new cloud applications? There are proven methods to bind both legacy voice applications and traditional PSTN audio into cloud-based applications and services at a carrier scale. Some of the most successful implementations leverage WebRTC, WebSockets, SIP and other open source technologies. In his session at @ThingsExpo, Da...
Dec. 2, 2016 08:15 PM EST Reads: 1,561
"IoT is going to be a huge industry with a lot of value for end users, for industries, for consumers, for manufacturers. How can we use cloud to effectively manage IoT applications," stated Ian Khan, Innovation & Marketing Manager at Solgeniakhela, in this SYS-CON.tv interview at @ThingsExpo, held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 2, 2016 06:45 PM EST Reads: 3,992
As data explodes in quantity, importance and from new sources, the need for managing and protecting data residing across physical, virtual, and cloud environments grow with it. Managing data includes protecting it, indexing and classifying it for true, long-term management, compliance and E-Discovery. Commvault can ensure this with a single pane of glass solution – whether in a private cloud, a Service Provider delivered public cloud or a hybrid cloud environment – across the heterogeneous enter...
Dec. 2, 2016 06:30 PM EST Reads: 1,482
The cloud promises new levels of agility and cost-savings for Big Data, data warehousing and analytics. But it’s challenging to understand all the options – from IaaS and PaaS to newer services like HaaS (Hadoop as a Service) and BDaaS (Big Data as a Service). In her session at @BigDataExpo at @ThingsExpo, Hannah Smalltree, a director at Cazena, provided an educational overview of emerging “as-a-service” options for Big Data in the cloud. This is critical background for IT and data professionals...
Dec. 2, 2016 05:00 PM EST Reads: 4,083
Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more business becomes digital the more stakeholders are interested in this data including how it relates to business. Some of these people have never used a monitoring tool before. They have a question on their mind like “How is my application doing” but no id...
Dec. 2, 2016 04:45 PM EST Reads: 2,112
@GonzalezCarmen has been ranked the Number One Influencer and @ThingsExpo has been named the Number One Brand in the “M2M 2016: Top 100 Influencers and Brands” by Onalytica. Onalytica analyzed tweets over the last 6 months mentioning the keywords M2M OR “Machine to Machine.” They then identified the top 100 most influential brands and individuals leading the discussion on Twitter.
Dec. 2, 2016 04:45 PM EST Reads: 1,978
What happens when the different parts of a vehicle become smarter than the vehicle itself? As we move toward the era of smart everything, hundreds of entities in a vehicle that communicate with each other, the vehicle and external systems create a need for identity orchestration so that all entities work as a conglomerate. Much like an orchestra without a conductor, without the ability to secure, control, and connect the link between a vehicle’s head unit, devices, and systems and to manage the ...
Dec. 2, 2016 04:15 PM EST Reads: 399
More and more brands have jumped on the IoT bandwagon. We have an excess of wearables – activity trackers, smartwatches, smart glasses and sneakers, and more that track seemingly endless datapoints. However, most consumers have no idea what “IoT” means. Creating more wearables that track data shouldn't be the aim of brands; delivering meaningful, tangible relevance to their users should be. We're in a period in which the IoT pendulum is still swinging. Initially, it swung toward "smart for smar...
Dec. 2, 2016 04:15 PM EST Reads: 386
In an era of historic innovation fueled by unprecedented access to data and technology, the low cost and risk of entering new markets has leveled the playing field for business. Today, any ambitious innovator can easily introduce a new application or product that can reinvent business models and transform the client experience. In their Day 2 Keynote at 19th Cloud Expo, Mercer Rowe, IBM Vice President of Strategic Alliances, and Raejeanne Skillern, Intel Vice President of Data Center Group and G...
Dec. 2, 2016 04:00 PM EST Reads: 1,870
Information technology is an industry that has always experienced change, and the dramatic change sweeping across the industry today could not be truthfully described as the first time we've seen such widespread change impacting customer investments. However, the rate of the change, and the potential outcomes from today's digital transformation has the distinct potential to separate the industry into two camps: Organizations that see the change coming, embrace it, and successful leverage it; and...
Dec. 2, 2016 03:30 PM EST Reads: 3,206