Between 1990 and 2010 the rate of economic convergence across American states slowed to less than half what it had been between 1880 and 1980. It has since fallen close to zero. Rich cities started pulling away from less well-off counterparts (see chart 1). According to the Brookings Institution, a think-tank, in the decade to 2015 productivity growth in American metropolitan areas was highest in the top 10% and the bottom 20% (where, by definition, the baseline was low). Struggling middle-income cities like Scranton fell further behind. A recent report by the OECD found that, in its mostly-rich members, the average productivity gap between the most productive 10% of regions and the bottom 75% widened by nearly 60% over the past 20 years.
The enterprise collaboration software vendor said it earned 12 cents a share, three cents ahead of the consensus estimate. Revenue climbed 41.7% year over year to $193.8 million, also above the $185.8 million analysts had forecasted.
You know what they say: developers don’t pay for anything.
Someone either needs to acquire Atlassian, it has to start acquiring companies, or if the private cloud thing becomes cemented, they need to work with the public cloud three to build out the private cloud toolchain. IBM and CA are the traditional ALM/SDLC acquirers (with occasional raids by the Microsoft barbarians), but that doesn’t seem likely anymore?
Here, maybe Oracle if they double down on appdev for their new PaaS: retaining their existing Java+Oracle DB empire, feeding it into PaaS? That’s a bit too ornate of a strategy for such as big asset as Atlassian, though.
There’s always PE for big bundling plays, but what would the PE exit strategy be?
Source: At Last! Atlassian Surges on Strong Earnings, Forecast
Oracle reports its PaaS and IaaS revenue together, which makes understanding its IaaS growth difficult. FY16 to FY17 revenue increased from $0.9bn to $1.4bn, equivalent to 60% YoY growth. The company claims to have added 14,000 IaaS and PaaS customers to OCI since its inception, almost all of them existing customers of its licensed software. Oracle’s overall revenue in 2016 was $37bn, so IaaS and PaaS still represent a small slice of the pie.
The report has, of course, more detail on the portfolio, e.g.:
A challenge Oracle faced from the beginning was its tardiness to the market. Sure, it could copy and perhaps improve upon existing public cloud offerings, but it would have to do it faster than the rest of the market. AWS, for example, has over 70 services, so there is a lot of ground to cover. Over the past year, Oracle has released 50 services and features – starting from bare-metal compute and storage, the company has added virtual machines, databases, database clustering, load balancers, audit capability, compliance, monitoring, logging, authentication and new images. From a single datacenter in Phoenix, it has expanded to Ashburn, Virginia, and Frankfurt; it is targeting London for early 2018 and APAC further down the line. It has also released and open-sourced a new serverless capability called Fn and a Docker-native platform called Fn Flow for composing serverless applications. The company hopes to distinguish its serverless offering by making it cloud-agnostic, although Java is first among equals in terms of supported languages. Oracle realizes that its capability isn’t as broad as AWS’s, but its rate of development shows it can achieve a lot in a short amount of time.
In 451 Research’s Voice of the Enterprise: Hosting & Cloud Managed Services, Organizational Dynamics 2017 report, 44% of 515 respondents stated that they would pay a premium for an enhanced SLA on performance/uptime; 34% stated that they would pay a premium for enhanced customer support. The median premium for these enhancements was about 20%. Buyers see value in services way beyond just the basics. The challenge for Oracle is convincing customers that it offers the best capability for the best price – there are others in the market with stronger credentials and reputations. stronger credentials and reputations.
Source: Oracle stays the course on IaaS
The company targets very large users, with 60% of its customers being MSPs, followed by enterprises at about 30%, and the rest coming from government agencies. It doesn’t report the number of direct customers, but its website boasts 47,000 organizations as users, many of them employing ScienceLogic via service providers. Average annual contract value for direct customers is $125,000.
Dave Bartoletti, an analyst with IT consultancy Forrester, said it’s clear that Kubernetes has won at the orchestration layer. “There’s too much mindshare around it,” he said in a phone interview with The Register. “There are too many developers who just want this.”
Pretty much everyone has the sentiment that kubernetes has won.
More details from Joseph Tsidulko at CRN:
While some components of Enterprise Edition previously could be made to work with Kubernetes, the crucial control plane for managing the lifecycle of containerized applications was incompatible. Docker, however, had participated in the Kubernetes project, and always believed the technologies were complementary, Chanana said.
Docker is now focused on building out the components needed to make Kubernetes an enterprise-grade solution, just as it did with Swarm, he said, including security, high availability, and ease of use through its existing tools and control plane. Those are capabilities Docker uniquely can deliver to ease a lot of the struggles customers face in taking advantage of Kubernetes’ advanced container-scheduling capabilities.
It happens to be the case that CF — because it’s an app platform and wants to let the user focus on their code — provides a way to convert code in to containers inside the platform without having to start messing around with Dockerfiles and the like. And this functionality even does some cool things for you like keeping your container OS automatically patched so you don’t have to build CI pipelines to monitor your base images and rebuild stuff.
That’s why I love Cloud Foundry’s Application Runtime. Of course, because of these constraints — the constraints that are why I love it — the App Runtime can’t possibly work for complex stateful services: the whole point is for it not to. And that’s why it’s fantastic that there’s now a Container Runtime (which I wish we’d called a Stateful Services Runtime because that’s how I think of it).
Ian Andrews explains and whiteboards out how all the cloud-native infrastructure fits together:
Go to 7m21s if you want to skip right to the diagraming.
There’s a new survey out from the Cloud Foundry Foundation, looking at the users of Cloud Foundry. Here’s some highlights and notes:
- Another ClearPath joint, n=735.
- It’s important to keep in mind that this is covers all distress of Cloud Foundry, including open source (no vendor involved).
- “The percentage of user respondents who require over three months
per app drops from 51 percent to 18 percent after deploying Cloud Foundry Application Runtime”
- “…while the percentage of user respondents who require less than a week climbs from 16 percent to 46 percent.”
- “Nearly half (49 percent) of Cloud Foundry Application Runtime users are large enterprises ($1+ billion annual revenue).”
- This chart is hard to read, but it shows a reduction in time to deploy across various time periods:
- Uptake is early, but there are definitely mature users: “A plurality of Cloud Foundry Application Runtime users (61 percent) describe their deployments as somewhere in the early stages—trial, PoC, evaluation, or a partial integration into specific business units. Meanwhile, 39 percent have deployed Cloud Foundry Application Runtime more broadly across their company, from total integration in specific business groups to company-wide deployment.”
- “Comcast, for example has more than 1500 developers using Cloud Foundry Application Runtime daily. Home Depot reports more than 2500 developers.”
- “Comcast has seen between 50 percent and 75 percent improvement in productivity.”
- “Half of Cloud Foundry Application Runtime users are currently using containers, such as Docker or rkt, with another 35 percent evaluating or deploying containers.”
- Container management – there’s a wide variety of tools that people use for container orchestration, including DIY (14%). There’s a lot of interest in having CF do it: “Nearly three-quarters (71 percent) of Cloud Foundry Application Runtime users currently using or evaluating containers are interested in adding container orchestration and management to their Cloud Foundry Application Runtime environment.” Hence, validating the Cloud Foundry Container Runtime.
- Of course, the surveyed are already CF users, so they’re biased/driven by what they know.
- Almost half of respondents say that getting started with CF. But people end up liking it: “An overwhelming majority of users (83 percent) would recommend Cloud Foundry Application Runtime to a colleague, including 60 percent who would do so strongly.”
- “As more companies roll out Cloud Foundry Application Runtime more broadly, the footprint continues to grow. Currently, 46 percent of users have more than 10 apps deployed on Cloud Foundry Application Runtime, including 18 percent with over 100 (and eight percent with over 500).” 4% have over 1,000 apps.
- CF’s uses: “The primary use is for microservices (54 percent), followed by websites (38 percent), internal business applications (31 percent), Software-as-a-Service (SaaS) (27 percent) and legacy software (eight percent).”
- Validating multi-cloud: “60 percent say this is very important, and another 30 percent describe it as somewhat important.” Meanwhile, 53% are using more than one type of IaaS.
I have an extra piece in The Register this month. I was asked to frame the history of software product theory between the Cluetrain, Andrew Clay Shafer’s agile infrastructure talk, DevOps, and the “we’re a software company now” trope.
Try to go beyond hand waving and opinions and find out what really is happening. A good way to start is to ask people to picture what their scenario would look like if everything was perfect. This puts them into a positive frame and helps focus on great outcomes. Once you’re sure you’re working on an improvement opportunity that’s worth your time, try small time-bound experiments that you actually follow through on. Use what you learn to come up with the next step. I’ve found that the combination of being bold with the vision but taking small steps to get there is a good combination.