Marketwatch

This Week in Cloud May 5, 2017

Ryan Quackenbush

By Ryan Quackenbush5.5.17

Welcome to This Week in Cloud! This is a curated list of the top stories that were published during the past week pertaining to cloud computing, containers, the IoT, acquisitions, product releases, industry studies, and more.
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Cloud Spend to Outpace Overall IT Investment, Report Finds

By Conner Forrest, May 3rd edition of TechRepublic
“Enterprise IT spending in cloud and hosted services will outpace the growth of general IT spending by 25.8% to 12%, according to a recent report from 451 Research. 451 Research’s Voice of the Enterprise: Hosting & Cloud Managed Services was built on data from roughly 1,000 surveys completed by IT and cloud decision-makers worldwide, combined with 20 in-depth phone interviews. Bumps in cloud spending existed in almost all verticals, and across small, medium, and large companies. The trend was pronounced in large businesses, however, which expected their budget to grow by 33%. Of those surveyed, 88% expect that their hosting and cloud budgets will see an increase in 2017 versus what they spent in the year prior. However, only 70% of respondents said that they would likely be increasing their general IT budget in 2017 vs. 2016.”

Daily Report: Cloud Computing Asserts Itself

By Jim Kerstetter, April 28th edition of NY Times
“It’s been said before but it bears repeating: If it were not for its cloud-computing business, Amazon.com would have difficulty reaching profitability. On Thursday, we were reminded how important Amazon Web Services, or A.W.S., has become to the company’s finances. For the first quarter, which ended March 31, Amazon’s total net income was $724 million. The company said the $890 million in operating income from A.W.S. accounted for most of its overall profits. Can that last? A.W.S. is far and away the leader in cloud computing services, but Microsoft and Alphabet, the parent of Google, are both investing heavily to close the gap, and both are willing to undercut Amazon on price. Other big tech companies like IBM and Oracle are also aggressively investing to get a piece of the cloud action.”

Cloud portability? Keep dreaming

By Matt Asay, May 4th edition of InfoWorld
“People talk about multicloud as if it’s a choice. It’s not. Multicloud is simply a fact of life. Within any enterprise, developers move at different paces while dealing with years or even decades of legacy build-out. Some workloads will never go anywhere. Others simply fit a particular cloud best or migrate to the cloud where a certain dev group has already established a beachhead. Through whatever means those workloads arrive on AWS, Azure, Google Cloud, or another public cloud, and they’ll very likely stay put once in place. One factor keeping such workloads firmly rooted in place is data gravity. It’s expensive to move data from one cloud to another (not to mention from an on-prem deployment to a public cloud). But that’s not the biggest problem.”

Hybrid Cloud: The ‘New’ But Not-New IT Service Platform

By Trevor Pott, May 4th edition of The Register
“Today, the term hybrid IT is typically used when talking about bridging IT on multiple premises. But this is an oversimplification. Buried deep within any hybrid IT discussion will be a need to talk about standards, compliance and some difficult decisions about how we even conceptualize our approach to IT. As a marketing term “hybrid-anything” means the integration of two things that were previously separate. A hybrid storage array contains both flash and magnetic media. Hybrid WAN networking is a network topology containing more than one connection type, for example MPLS and an internet-based tunnel. In 2017, however, when we talk about “hybrid IT” we’re talking about a combination of on-premises IT and public cloud IT. Sometimes we might even throw in service-provider hosted IT as well. But we should always be clear what sort of hybridization we are talking about.”

Report: Despite Cloud Growth, On Premise Data Centers Still Dominate Enterprise Compute

By Alison DeNisco, May 1st edition of TechRepublic
“The majority of IT organizations are moving workloads to the cloud—but on-premise data centers remain the dominant choice for enterprises, according to a new report from Uptime Institute, released Monday. Some 65% of enterprise workloads reside in enterprise owned and operated data centers—a number that has remained stable since 2014, the report found. Meanwhile, 22% of such workloads are deployed in colocation or multi-tenant data center providers, and 13% are deployed in the cloud, the survey found. Explosive growth in business critical applications and data have led enterprises to continue to view the data center as essential to digital transformation strategies, Uptime Institute concluded in a press release.”

Serverless Computing Will Drive Out OpenStack Private Clouds

By David Linthicum, May 2nd edition of InfoWorld
“By now we all (should) know the benefits of serverless computing in the public cloud. InfoWorld’s Eric Knorr provides a good summary of serverless computing’s advantages, so I won’t go into the details here. What’s most interesting is that as Amazon Web Services, Google, and Microsoft get better and better, the private cloud providers are still moving at a snail’s pace. The public cloud is where we see new technologies take off, such as machine learning, big data, and now serverless computing. By contrast, the private cloud seems like the redheaded stepchild. What went wrong? Private clouds have been largely tied to OpenStack and other open cloud standards.”

Why Everyone’s So Excited About Serverless Computing

By Eric Knorr, May 1st edition of InfoWorld
“As part of the normal cycle of things, our most recent boom in enterprise technology development has slowed, which always leaves the industry breathless about whatever’s left that’s actually new. Witness, for example, the current mania over AI and machine learning. I’ve had my fill of AI-washing, so the most interesting new area to me today is serverless computing, which hit the radar a couple of years ago when Amazon introduced AWS Lambda. The basic idea is that, finally, developers can build without worrying about physical or virtual servers or even containers. Instead, devs can simply assemble services from small building blocks of code called functions, and all that messy infrastructure stuff under the hood takes care of itself.”

Why Some Enterprises Don’t Do Open Source

By Aziz Gilani, May 2nd edition of EnterpriseTech
“As everyone knows, the code for open source software (OSS) is made available with a license in which the copyright holder provides the rights to study, change and distribute the software to anyone for any purpose. OSS is typically developed in a collaborative public manner, relying on the intelligence and creativity of crowdsourcing to create platforms, applications and infrastructure that in many cases rivals that of its proprietary, closed-source cousin. While smaller companies can quickly adopt open source products, many larger enterprises are laggards due to structural constraints. Though a group within an enterprise may use an open source solution, the tools rarely end up being deployed enterprise-wide because open source solutions are built to solve a specific problem for a specific line of business. If another line of business struggles with the same problem, they can’t simply adopt the same solution – they need to spend time setting up initial configurations and establishing the right IT support mechanisms. Bottom line: most large enterprises don’t do open source.”

The Coming Crisis in Container Reliability

By Dan Woods, May 1st edition of Forbes
“Because I am a deep nerd, I long ago read a book called, “The Coming Crisis of Western Sociology,” a book that pointed out the defects of what the author considered the restrictive prevailing mindset and working assumptions of sociology in the 1960s. Inspired by that book, I think it is now time to consider whether we are facing a “Coming Crisis in Container Reliability.” It is designed to be a provocative question, and I suspect there will be many people with strong opinions on both sides of my arguments. My argument is that the operational and support processes for the components of the container host and container images need to be just as mature as the same processes that have developed over the past 20 years for the underlying operating system. If those processes are not as mature, problems will occur when less than optimally supported container hosts and container images run in production.”

The Great Open-Source Software Debate: Does This Model Have A Future?

By Paul Gillin, May 1st edition of SiliconANGLE
“It sounds like a good idea in concept: Outsource costly software development and testing operations to a community of skilled developers who work for free. Then take the fruits of their labors and package it up with other add-ons and extensions – also created by other people for free – and sell it to enterprises that can’t be bothered with all the hassle of configuration, installation and support. Undercut your competition’s prices by 90 percent and still make money because your development costs are near zero. Rinse and repeat in other product categories. That’s the pure open-source software business model. It’s the one that Red Hat Inc., which opens its 13th annual Red Hat Summit conference in Boston this week, has ridden to $2.4 billion in annual sales and a market capitalization of better than $15 billion. The problem is that no one else has even come close to duplicating it, though many have tried.”

Your Next Computer Could Be In A Data Center

By Romain Dillet, April 30th edition of TechCrunch
“Most of the apps on your phone already rely on a server component to store and process your data. When you post a video on Facebook, it gets re-encoded into multiple formats on the server so that other users can stream your video in SD, HD, etc. But I think this trend is going to become even more important in the coming years, with all your devices acting as a simple screen into your stuff running on servers in data centers near you. First, internet connection speeds and latency need to improve drastically for everyone. I’m lucky that I live in Paris, a dense city with efficient infrastructure. I get around 800 Mbps and 250 Mbps of download and upload speeds at home. And I can ping all data centers around Paris in less than 2 milliseconds with a wired connection.”

Docker and Kubernetes: Friends or Foes?

By Mike Kavis, April 28th edition of Forbes
“Unless you live under a rock, you know that Docker’s valuation is over $1B and the Docker brand is one of the most talked about brands in all of technology. Docker is known as the defacto standard for container runtime, but Google’s Kubernetes is winning the battle for orchestration engines. The question I often get is, “will the adoption of Kubernetes hurt Docker?” Many people believe that the money in containers is in the orchestration layer. This is why they see Kubernetes as a direct threat to Docker. I disagree with this view point. Docker is not a container company. Docker is a platform company. To understand that concept, one must understand the history of Docker.”

Docker CEO Switch Brings Enterprise Expertise, and Questions of Acquisition

By Scott M Fulton III, May 2nd edition of The New Stack
“In a completely unanticipated job swap whose timing — two weeks after the company’s annual user conference — is raising eyebrows, Docker Inc. announced Tuesday morning that Ben Golub is leaving the chief executive’s post, stepping into a director’s role with the company. Steve Singh, previously Docker’s chairman but, more importantly, the CEO of SAP-owned travel management firm Concur, will assume the CEO post, on a timetable that has yet to be announced. “I am incredibly humbled and honored to have been a part of this journey,” wrote Golub in a company blog post published Tuesday morning. “While there is always some uncertainty about changing roles, I am 100 percent certain that Steve is the right person for Docker.”

IBM To Snap Up Remnants Of Verizon’s Cloud Business

By Liam Tung, May 3rd edition of ZDNet
“The sale to IBM marks the end of Verizon’s venture into the cloud infrastructure business, and allows it to focus on reselling datacenter services in conjunction with its own managed network, security, and communications services. Verizon says it will still sell customers services to “securely and reliably connect to their cloud resources and utilize cloud-enabled applications”. It just won’t be hosting anything on its cloud infrastructure, which it gained by acquiring Terramark in 2011 for $1.4bn. Verizon officially launched its Cloud Compute and Cloud Storage in 2013, but by 2014 it was already looking for a way ou.”

Amazon’s Cloud Gain Could Be Google’s Cloud Loss

By Tess Townsend, April 28th edition of Re/Code
“Cloud is one of Alphabet’s fastest growing businesses. And the massive size of Amazon’s cloud offering, Amazon Web Services, and the growth of Microsoft’s own cloud business, Azure, is not good news for Google. Despite the fact that cloud is still a relatively new industry with lots of room for growth, early entrants are more likely to dominate. That means it’ll be that much harder for Google to catch up — or, as Google executive Diane Greene recently said, surpass big players like AWS.”

Linux Wants to ‘Harmonize’ Open Source & Standards

By Carol Wilson, May 1st edition of Light Reading
“Open source projects and telecom’s standards development organizations must work together to speed production of multi-vendor interoperability and automation for NFV and SDN, according to a Linux Foundation whitepaper released today. Such an effort requires close coordination, however, as well as a realization by each side of what it does best and careful attention to legal and intellectual property challenges. The time is ripe for such an effort, because open source projects are proliferating as standalone projects, and need to be “better aligned with end users that maintain common technology stacks,” according to the whitepaper “Harmonizing Open Source and Standards in the Telecom World.”

Atlassian Expands Cloud Infrastructure To Europe As It Increases Its rReliance On AWS

By Tom Krazit, May 2nd edition of GeekWire
“European customers of Atlassian’s various cloud software products should see increases in performance with the introduction of European-based infrastructure running on Amazon Web Services, as Atlassian increases its use of the leading public cloud vendor and gives customers some help should data localization laws become fashionable. Atlassian is planning to make the announcement Tuesday at the first Atlassian Summit in Europe, where nearly half of its customer base lives, said company President Jay Simons in a recent interview. Founded in Australia, Atlassian develops several different tools for software developers and product management teams, such as the JIRA development console, the Trello product management app, and HipChat, a chat service popular among development teams.”

Ryan Quackenbush
Ryan Quackenbush

Ryan Quackenbush is a corporate communications specialist at Apprenda whose roles include elements of writing, sales, marketing and research. His cooking is renowned, his record collection and library are extensive and, when not at Apprenda, he can usually be found rooting for the Mets or playing live music. You can follow him on Twitter at @RSQuackenbush.

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  1. JohnMay 17, 2017

    These stories are quite interesting since I’m still learning about what revolves in the technological changes happening now. Thanks for sharing this post. Good work !

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