Click here to close now.

Welcome!

Linux Authors: Jason Bloomberg, Elizabeth White, Liz McMillan, Carmen Gonzalez, Esmeralda Swartz

Related Topics: Cloud Expo, Java, Linux, Big Data Journal, SDN Journal

Cloud Expo: Article

Cloud Wars – How Many 800lb Gorillas Can Fit in the Room?

In their latest magic quadrant report on IaaS, Gartner describes the market as still evolving and maturing

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?

More Stories By Ed Featherston

Ed Featherston is a senior enterprise architect and director at Collaborative Consulting. He brings more than 34 years of information technology experience of designing, building, and implementing large complex solutions. He has significant expertise in systems integration, Internet/intranet, client/server, middleware, and cloud technologies, Ed has designed and delivered projects for a variety of industries, including financial services, pharmacy, government and retail.

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


@ThingsExpo Stories
SYS-CON Events announced today that Cisco, the worldwide leader in IT that transforms how people connect, communicate and collaborate, has been named “Gold Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Cisco makes amazing things happen by connecting the unconnected. Cisco has shaped the future of the Internet by becoming the worldwide leader in transforming how people connect, communicate and collaborate. Cisco and our partners are building the platform for the Internet of Everything by connecting the...
The WebRTC Summit 2014 New York, to be held June 9-11, 2015, at the Javits Center in New York, NY, announces that its Call for Papers is 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 16th International Cloud Expo, @ThingsExpo, Big Data Expo, and DevOps Summit.
15th Cloud Expo, which took place Nov. 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA, expanded the conference content of @ThingsExpo, Big Data Expo, and DevOps Summit to include two developer events. IBM held a Bluemix Developer Playground on November 5 and ElasticBox held a Hackathon on November 6. Both events took place on the expo floor. The Bluemix Developer Playground, for developers of all levels, highlighted the ease of use of Bluemix, its services and functionality and provide short-term introductory projects that developers can complete between sessions.
Temasys has announced senior management additions to its team. Joining are David Holloway as Vice President of Commercial and Nadine Yap as Vice President of Product. Over the past 12 months Temasys has doubled in size as it adds new customers and expands the development of its Skylink platform. Skylink leads the charge to move WebRTC, traditionally seen as a desktop, browser based technology, to become a ubiquitous web communications technology on web and mobile, as well as Internet of Things compatible devices.
SYS-CON Events announced today that robomq.io will exhibit at SYS-CON's @ThingsExpo, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. robomq.io is an interoperable and composable platform that connects any device to any application. It helps systems integrators and the solution providers build new and innovative products and service for industries requiring monitoring or intelligence from devices and sensors.
The list of ‘new paradigm’ technologies that now surrounds us appears to be at an all time high. From cloud computing and Big Data analytics to Bring Your Own Device (BYOD) and the Internet of Things (IoT), today we have to deal with what the industry likes to call ‘paradigm shifts’ at every level of IT. This is disruption; of course, we understand that – change is almost always disruptive.
WebRTC is an up-and-coming standard that enables real-time voice and video to be directly embedded into browsers making the browser a primary user interface for communications and collaboration. WebRTC runs in a number of browsers today and is currently supported in over a billion installed browsers globally, across a range of platform OS and devices. Today, organizations that choose to deploy WebRTC applications and use a host machine that supports audio through USB or Bluetooth can use Plantronics products to connect and transit or receive the audio associated with the WebRTC session.
Docker is an excellent platform for organizations interested in running microservices. It offers portability and consistency between development and production environments, quick provisioning times, and a simple way to isolate services. In his session at DevOps Summit at 16th Cloud Expo, Shannon Williams, co-founder of Rancher Labs, will walk through these and other benefits of using Docker to run microservices, and provide an overview of RancherOS, a minimalist distribution of Linux designed expressly to run Docker. He will also discuss Rancher, an orchestration and service discovery platf...
SYS-CON Events announced today that Aria Systems, the leading innovator in recurring revenue, has been named “Bronze Sponsor” of SYS-CON's @ThingsExpo, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. Proven by the world’s most demanding enterprises, including AAA NCNU, Constant Contact, Falck, Hootsuite, Pitney Bowes, Telekom Denmark, and VMware, Aria helps enterprises grow their recurring revenue businesses. With Aria’s end-to-end active monetization platform, global brands can get to market faster with a wider variety of products and services, while maximizin...
SYS-CON Media announced today that @WebRTCSummit Blog, the largest WebRTC resource in the world, has been launched. @WebRTCSummit Blog offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. @WebRTCSummit Blog can be bookmarked ▸ Here @WebRTCSummit conference site can be bookmarked ▸ Here
SYS-CON Events announced today that Alert Logic, the leading provider of Security-as-a-Service solutions for the cloud, has been named “Bronze Sponsor” of SYS-CON's 16th International Cloud Expo® and DevOps Summit 2015 New York, which will take place June 9-11, 2015, at the Javits Center in New York City, NY, and the 17th International Cloud Expo® and DevOps Summit 2015 Silicon Valley, which will take place November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA.
Sonus Networks introduced the Sonus WebRTC Services Solution, a virtualized Web Real-Time Communications (WebRTC) offer, purpose-built for the Cloud. The WebRTC Services Solution provides signaling from WebRTC-to-WebRTC applications and interworking from WebRTC-to-Session Initiation Protocol (SIP), delivering advanced real-time communications capabilities on mobile applications and on websites, which are accessible via a browser.
SYS-CON Events announced today that Vitria Technology, Inc. will exhibit at SYS-CON’s @ThingsExpo, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Vitria will showcase the company’s new IoT Analytics Platform through live demonstrations at booth #330. Vitria’s IoT Analytics Platform, fully integrated and powered by an operational intelligence engine, enables customers to rapidly build and operationalize advanced analytics to deliver timely business outcomes for use cases across the industrial, enterprise, and consumer segments.
Wearable technology was dominant at this year’s International Consumer Electronics Show (CES) , and MWC was no exception to this trend. New versions of favorites, such as the Samsung Gear (three new products were released: the Gear 2, the Gear 2 Neo and the Gear Fit), shared the limelight with new wearables like Pebble Time Steel (the new premium version of the company’s previously released smartwatch) and the LG Watch Urbane. The most dramatic difference at MWC was an emphasis on presenting wearables as fashion accessories and moving away from the original clunky technology associated with t...
SYS-CON Events announced today that Liaison Technologies, a leading provider of data management and integration cloud services and solutions, has been named "Silver Sponsor" of SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York, NY. Liaison Technologies is a recognized market leader in providing cloud-enabled data integration and data management solutions to break down complex information barriers, enabling enterprises to make smarter decisions, faster.
SYS-CON Events announced today that Solgenia will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY, and the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Solgenia is the global market leader in Cloud Collaboration and Cloud Infrastructure software solutions. Designed to “Bridge the Gap” between Personal and Professional Social, Mobile and Cloud user experiences, our solutions help large and medium-sized organizations dr...
Connected devices and the Internet of Things are getting significant momentum in 2014. In his session at Internet of @ThingsExpo, Jim Hunter, Chief Scientist & Technology Evangelist at Greenwave Systems, examined three key elements that together will drive mass adoption of the IoT before the end of 2015. The first element is the recent advent of robust open source protocols (like AllJoyn and WebRTC) that facilitate M2M communication. The second is broad availability of flexible, cost-effective storage designed to handle the massive surge in back-end data in a world where timely analytics is e...
SYS-CON Events announced today that Akana, formerly SOA Software, has been named “Bronze Sponsor” of SYS-CON's 16th International Cloud Expo® New York, which will take place June 9-11, 2015, at the Javits Center in New York City, NY. Akana’s comprehensive suite of API Management, API Security, Integrated SOA Governance, and Cloud Integration solutions helps businesses accelerate digital transformation by securely extending their reach across multiple channels – mobile, cloud and Internet of Things. Akana enables enterprises to share data as APIs, connect and integrate applications, drive part...
SYS-CON Events announced today that CommVault has been named “Bronze Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY, and the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. A singular vision – a belief in a better way to address current and future data management needs – guides CommVault in the development of Singular Information Management® solutions for high-performance data protection, universal availability and sim...
Cloud is not a commodity. And no matter what you call it, computing doesn’t come out of the sky. It comes from physical hardware inside brick and mortar facilities connected by hundreds of miles of networking cable. And no two clouds are built the same way. SoftLayer gives you the highest performing cloud infrastructure available. One platform that takes data centers around the world that are full of the widest range of cloud computing options, and then integrates and automates everything. Join SoftLayer on June 9 at 16th Cloud Expo to learn about IBM Cloud's SoftLayer platform, explore se...