Link: Walmart pick Microsoft Azure for cloud

“Walmart plans to deploy Microsoft’s machine-learning, artificial-intelligence and other services to help employees, for example, pick products that go on shelves and optimize the performance of freezers and other equipment. The retailer is aggressively cutting costs as it invests in growing sales online, and it is using tech to analyze its operations, an area of Amazon’s expertise.”
Original source: Walmart pick Microsoft Azure for cloud

Link: Walmart pick Microsoft Azure for cloud

“Walmart plans to deploy Microsoft’s machine-learning, artificial-intelligence and other services to help employees, for example, pick products that go on shelves and optimize the performance of freezers and other equipment. The retailer is aggressively cutting costs as it invests in growing sales online, and it is using tech to analyze its operations, an area of Amazon’s expertise.”
Original source: Walmart pick Microsoft Azure for cloud

Link: Walmart pick Microsoft Azure for cloud

“Walmart plans to deploy Microsoft’s machine-learning, artificial-intelligence and other services to help employees, for example, pick products that go on shelves and optimize the performance of freezers and other equipment. The retailer is aggressively cutting costs as it invests in growing sales online, and it is using tech to analyze its operations, an area of Amazon’s expertise.”
Original source: Walmart pick Microsoft Azure for cloud

Link: Walmart pick Microsoft Azure for cloud

“Walmart plans to deploy Microsoft’s machine-learning, artificial-intelligence and other services to help employees, for example, pick products that go on shelves and optimize the performance of freezers and other equipment. The retailer is aggressively cutting costs as it invests in growing sales online, and it is using tech to analyze its operations, an area of Amazon’s expertise.”
Original source: Walmart pick Microsoft Azure for cloud

Link: Oracle Gets Cloudy: What’s Behind Their Change in Financial Reporting?

“Oracle did announce during the earnings call that cloud revenue was $1.7B for the quarter, but failed to break that out between SaaS and the combined IaaS and PaaS, as was previously reported. Also, with BYOL, it is impossible to know if customers are using those licenses in the cloud or on-prem, thereby obfuscating their cloud performance, which is now the number one factor in determining Oracle’s success against its peers. Oracle is claiming customers are deploying BYOL licenses in the cloud immediately, or have plans to do so in the near future, but it is impossible to know for sure.”

Vendors switching from on-prem to public cloud is hella hard, often deadly.
Original source: Oracle Gets Cloudy: What’s Behind Their Change in Financial Reporting?

Link: Embracing Kubernetes Doesn’t Have to Mean OPERATING Kubernetes – Container Solutions

“You can now embrace Kubernetes without managing all the pain yourself. AKS going GA yesterday was the trigger: now, all three major cloud providers offer production-ready managed Kubernetes services. Businesses may now run Kubernetes on the cloud of their choice, without needing to install, operate, and maintain their own Kubernetes management infrastructure.”
Original source: Embracing Kubernetes Doesn’t Have to Mean OPERATING Kubernetes – Container Solutions

Link: Enterprises taking path of greatest resistance to cloud, survey shows

Still a lot of stuff on-premises, and people want to move it to public cloud:

‘More than 80 percent of respondents have more than 100 applications under their purview, and a solid majority have a good deal still managed on-premises. The survey finds 74 percent stating at least half of these applications are on-premises. Another 71 percent of respondents see many of their on-premises applications as mission-critical to their business.’

How they’re moving apps:

‘Yet, the report’s authors state, “enterprises are choosing the path of most resistance, unintentionally creating a self-induced cloud skills gap.” That consists of cloud migration strategies that require the highest degree of IT skills — 49 percent cited refactoring or rewriting applications as their primary modernization strategy.

‘One in five, 20 percent, say they are rewriting core applications from scratch using cloud-native PaaS services. Another 28 percent are refactoring applications for the cloud using cloud-natuive and traditional applications. Another 20 percent are outright replacing applications with SaaS-based applications. About 12 percent are taking a “lift-and-shift” approach to simply move entire applications to hosted services.’

Survey of 450 “executive,” by 451 Research.
Original source: Enterprises taking path of greatest resistance to cloud, survey shows

Link: Enterprises taking path of greatest resistance to cloud, survey shows

Still a lot of stuff on-premises, and people want to move it to public cloud:

‘More than 80 percent of respondents have more than 100 applications under their purview, and a solid majority have a good deal still managed on-premises. The survey finds 74 percent stating at least half of these applications are on-premises. Another 71 percent of respondents see many of their on-premises applications as mission-critical to their business.’

How they’re moving apps:

‘Yet, the report’s authors state, “enterprises are choosing the path of most resistance, unintentionally creating a self-induced cloud skills gap.” That consists of cloud migration strategies that require the highest degree of IT skills — 49 percent cited refactoring or rewriting applications as their primary modernization strategy.

‘One in five, 20 percent, say they are rewriting core applications from scratch using cloud-native PaaS services. Another 28 percent are refactoring applications for the cloud using cloud-natuive and traditional applications. Another 20 percent are outright replacing applications with SaaS-based applications. About 12 percent are taking a “lift-and-shift” approach to simply move entire applications to hosted services.’

Survey of 450 “executive,” by 451 Research.
Original source: Enterprises taking path of greatest resistance to cloud, survey shows

Link: Enterprises taking path of greatest resistance to cloud, survey shows

Still a lot of stuff on-premises, and people want to move it to public cloud:

‘More than 80 percent of respondents have more than 100 applications under their purview, and a solid majority have a good deal still managed on-premises. The survey finds 74 percent stating at least half of these applications are on-premises. Another 71 percent of respondents see many of their on-premises applications as mission-critical to their business.’

How they’re moving apps:

‘Yet, the report’s authors state, “enterprises are choosing the path of most resistance, unintentionally creating a self-induced cloud skills gap.” That consists of cloud migration strategies that require the highest degree of IT skills — 49 percent cited refactoring or rewriting applications as their primary modernization strategy.

‘One in five, 20 percent, say they are rewriting core applications from scratch using cloud-native PaaS services. Another 28 percent are refactoring applications for the cloud using cloud-natuive and traditional applications. Another 20 percent are outright replacing applications with SaaS-based applications. About 12 percent are taking a “lift-and-shift” approach to simply move entire applications to hosted services.’

Survey of 450 “executive,” by 451 Research.
Original source: Enterprises taking path of greatest resistance to cloud, survey shows

Link: Gartner Forecasts Worldwide Public Cloud Revenue to Grow 21.4 Percent in 2018

“The worldwide public cloud services market is projected to grow 21.4 percent in 2018 to total $186.4 billion, up from $153.5 billion in 2017, according to Gartner, Inc.

The fastest-growing segment of the market is cloud system infrastructure services (infrastructure as a service or IaaS), which is forecast to grow 35.9 percent in 2018 to reach $40.8 billion (see Table 1).

Gartner expects the top 10 providers to account for nearly 70 percent of the IaaS market by 2021, up from 50 percent in 2016.”
Original source: Gartner Forecasts Worldwide Public Cloud Revenue to Grow 21.4 Percent in 2018

Link: Look at stupid, sexy Kubernetes with all the cloud firms hanging off its musclebound arms

“I think that a lot of companies find themselves using Kubernetes because it’s going to be built into the AWS’s and the Azures and so on,” Longbottom said. “So if you’re going to be looking at a hybrid cloud then you might as well be putting Kubernetes in place in your private cloud environment, because you’ll be able to plug far more easily into the public cloud component of the hybrid.”
Original source: Look at stupid, sexy Kubernetes with all the cloud firms hanging off its musclebound arms

Link: Is Microsoft Azure really making up ground on AWS?

In terms of raw figures, not growth, Azure is still a way behind. Even a generous assumption of Azure’s share of that US$5.3 billion intelligent cloud revenue figure for the quarter would put it well behind the US$5.1 billion AWS racked in over a similar period. Dave Bartoletti, a principal analyst at Forrester estimates AWS revenue at US$18 billion and Azure, excluding Office 365 and other non-platform revenue, at US$12 billion for the calendar year. “Azure has been growing faster on a smaller base, yes, but in our view, AWS’s growth is still very strong even at their size,” he added. “Azure is giving AWS a run globally, and is close to feature parity on many services. “Azure has also aggressively built out global regions and is on par with AWS for global data centre locations. It’s a healthy and exciting market, and Azure’s doing quite well.”
Original source: Is Microsoft Azure really making up ground on AWS?

Rackspace positioning around cloud and OpenStack, from the CEO

Now that they don’t have to compete with AWS, they have an extra $300m floating around in the spreadsheets:

“Ultimately now it’s about how are we going to build a stronger company. If we don’t have to go spend $300 million a year in capital competing against Amazon, building computing storage and networking, where should we go put that? In things like managed cybersecurity and professional services,” said Rhodes.

On OpenStack, finding the product/market for for private cloud:

And what about OpenStack, the open-source cloud computing platform that Rackspace created with NASA?

“We thought the world wanted another alternative to public cloud,” said Rhodes. “What we are learning is the world doesn’t need another public cloud, so OpenStack is shifting form and going private cloud.”

Also, cameo from my former 451 colleague Carl Brooks.

Link

Huawei public cloud momentum

The company sells a public cloud platform, mostly based on OpenStack, to service providers who want to stand up their own clouds. A sampling of customers thus far from Agatha’s recent report:

the group claims to have deployed more than 1.4 million virtual machines for customers across the board, and enabled the commercial deployments of public cloud (T-Systems’ Open Telekom Cloud), hybrid cloud (Vodafone’s Vodaplex Hybrid Cloud Platform) and HPC (University of Warsaw’s Top500 HPC project’s HPC cluster).

Source: Huawei pushes further into the telecom market with its public cloud platform

60% of enterprises using or planning to use public IaaS by the end of 2016, IDC

IDC’s IaaS forecast is out, tragically, I don’t have access to it. However, here’s some highlights from the press release:

  • Public IaaS is in wide use “A recent survey of over 6,000 IT organizations found that nearly two thirds of the respondents are either already using or planning to use public cloud IaaS by the end of 2016.”
  • Public IaaS is a large, fast growing market – the overall IaaS market is forecast to grow from $12.6bn in 2015 to $43.6bn in 2020, a CAGR of 28.2%.
  • Yup, fast growing – growth from 2014 to 2015 was 51%
  • People use more than one IaaS, and probably “cloud” – “[H]ybrid cloud infrastructure is already a common pattern at several large enterprises and IDC predicts that 80% of IT organizations will be committed to hybrid architectures by 2018″ – notice they say “large enterprises,” which suggests a cut of the data by company size: last I recall, IDC defined “large enterprise” as 2,500+ people, which may or may not be the case here.
  • A few cloud providers dominate – Amazon is still king, and there’s an fat-head of marketshare: “In 2015, 56% of the revenue and 59% of the absolute growth went to the top 10 IaaS vendors.”

Contrast that 60% IaaS usage with the 45% use in a recent Morgan Stanley CIO survey. I don’t think that’s a huge difference, but it does show the fiddliness of these kinds of surveys. To be fair, the Morgan Stanley survey has public IaaS usage at ~90% by 2019. I’d trust IDC a lot more, esp. with 6,000 surveyed vs. 100.

Also, while I can’t verify this: I’d assume this public IaaS is not to the exclusion of private cloud/on-premises. To be sure, some, or even much, of it must be public cloud gobbling up on-premises usage and revenue. However, I wouldn’t take it as a zero-sum game between the two.

Source: Enterprise Adoption Driving Strong Growth of Public Cloud Infrastructure as a Service, According to IDC – prUS41599716

CPI case study: IBM and SoftLayer would be greater together

Data from 451 Research’s Cloud Price Index suggests that IBM is missing a trick. By going all-in and baking SoftLayer with Bluemix, IBM would gain a leading position in the market in terms of completeness of services and global availability, as well as finally delivering a single user experience.

Owen over at 451 suggests that IBM hasn’t yet merged SoftLayer into Bluemix totally, missing out on a high ranking in cloud providers (by functionality, geographic availability, etc.). Also: “The company claims $10.2bn in cloud revenue, a growth rate of 46% Y/Y, and 20,000 new users per week.”

Source: CPI case study: IBM and SoftLayer would be greater together

vCloud Air Momentum

Also in 18 months, Fathers said, vCloud Air will have around 100,000 customers, up from the current “thousands”. Winning more customers will come down to increased interest in hybrid cloud, but also the addition of the NSX network virtualisation product to vCloud Air.

vCloud Air Momentum

More on HP’s cloud re-positioning, AWS financials

More on HP’s cloud re-positioning:

“HP is not leaving the public cloud market,“ said HP in a statement to CRN that mirrors a statement given earlier this week to VentureBeat. “We run the largest OpenStack technology-based public cloud out there. This has to do with not competing head-to-head with the big public cloud players.”

They’re going "enterprise” that is. And if you pay attention to analyst predictions and their surveys of what companies say they want to buy (mostly private and “hybrid cloud”), that’s likely OK.

When AWS’s financials come out soon, we’ll see what happens. No one (maybe Amazon who could search over their customer’s company names in their profile) really know how much “enterprises” use Amazon: it could be a lot, a little, a bread basket. Many people thing a lot, but existing vendors hope it’s a little.

The question will also be: is AWS additive to IT spend (companies find new things to run on AWS but keep their existing stuff on their “legscy” IT)…or are companies moving workloads to cloud.

The next bucket for modeling out thinking will be: when companies (and ISVs/SaaSes) make new applications, where do they deploy them? Most people would say public cloud, other would get nuanced about managed hosting.

More on HP’s cloud re-positioning, AWS financials

The public PaaS Magic Quadrante is out. We’re not listed on there, as you can see. Most of our business is in “private PaaS,” a different category Gartner. On the other hand, many of those blue dots are run by Cloud Foundry, some even with Pivotal Cloud Foundry.

Check out the huge landscape, though. Fun!

IBM building out it’s public cloud, doubling capacity this year

The company plans to open 15 new data centers this year, more than doubling the cloud capacity it acquired when it purchased SoftLayer last year for $2 billion. It plans to combine the new data centers, the existing SoftLayer data centers, and the data centers it already ran before the SoftLayer purchase into a single operation that would provide public and private cloud services to its customers, as well as provide services for internal operations.

And, these guys can’t help themselves with the massive revenue targets:

IBM is estimating that global cloud revenue will grow to $200 billion per year by 2020. IBM hopes to generate $7 billion in cloud revenue in 2015.

IBM building out it’s public cloud, doubling capacity this year

A $50m super computer for $33k

Amazon today operates at a scale that most people are unaware of and find incomprehensible when they get a glimmer of understanding of it. Just to offer an example, one weekend Cycle Computing used EC2 spot instances to create a 156,000 core supercomputer that spanned 8 AWS regions and provided 1.2 Petaflops of processing power. In its presentation, Cycle noted the tremendous cost savings this offered: $33,000 instead of the $50 million plus it would have cost if the equipment were purchased.

A $50m super computer for $33k

IDC: public cloud will be 17% of all “IT product” spend in 2017

Also:

The private cloud play will fall off in popularity as public cloud providers add virtual private cloud (VPC) services to address issues (like security concerns) that today either are driving organizations toward private cloud or keeping them out of the cloud altogether. IDC says VPCs combine the big benefits of public cloud infrastructures, including economics, scale, and pace of innovation, with the privacy and control features associated with private clouds.

IDC: public cloud will be 17% of all “IT product” spend in 2017

One rando’s detailed take on why public IaaS is not “enterprise-ready”

[P]aying much less for a shitty service is one thing, but paying WAY MORE for a shitty service is just doubling down on complete shit.

Good comment (on the original article) from what appears to be an “enterprise” IT admin on his wishlist for cloud stuff. Essentially, he wants the same stuff you’d normally get, just cheaper: not that new-fangled cloud way of doing things. Fair enough.

One rando’s detailed take on why public IaaS is not “enterprise-ready”