Category Archives: Cloud Computing

Chinese tech giant Alibaba joins key open-source cloud computing foundation – GeekWire

GeekWire File Photo.

Kicking off a week in which it plans to encourage American businesses to invest in China, Alibaba Group announced plans to give something back to the cloud computing community: Alibaba Cloud is now a member of the Cloud Native Computing Foundation.

The Chinese internet giant plans to join the CNCF as a Gold member, putting it on the same level as rival Tencent. The CNCF, which is working to improve adoption of modern cloud-native software development technologies without setting standards, said in a statement that it was looking forward to more open-source contributions from the international cloud community.

Alibaba may not be a household name in the U.S., unless your household sells servers or enterprise computing technology. Nearly half a billion people mostly in China use one of Alibabas many services, from ecommerce to streaming video, and Intel has dubbed the company one of its super seven data center customers. The company is holding an event in Detroit this week with founder and executive chairman Jack Ma to pitch China as a source of new revenue for American businesses.

Alibaba Cloud is the leading cloud computing service in China, although it does face competition from Amazon Web Services and Microsoft there. On a global basis, it trails AWS, Microsoft, and Google by some margin, but Gartners latest Magic Quadrant report ranked it above more established U.S. cloud services like IBM and Oracle based on its belief in Alibabas ability to execute its cloud strategy.

Its definitely a significant addition for the CNCF, which now has a second source of cloud computing expertise in China through which to promote its member projects, most notably the Kubernetes container-orchestration project.

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Chinese tech giant Alibaba joins key open-source cloud computing foundation - GeekWire

Microsoft Could Surpass Amazon in Cloud Computing This Year (AMZN, MSFT) – Investopedia

Amazon (AMZN) may have long been the leader in cloud computing with its Amazon Web Services, but that may change later this year as Microsoft Corp. (MSFT) is finally able to surpass it.

Thats according to Pacific Crest Securities which late Friday said Azure, the cloud computing unit of Microsoft, could have more revenue that its main rival for the first time in 2017. In a research note covered by The Street, analyst Brent Bracelin predicted the rise of Microsoft for the first time in 10 years would transition the company from a cloud laggard to a cloud leader. Bracelin said he came to this conclusion after conducting an analysis of the 60 biggest cloud computing companies. It was revealed that the market is poised for primetime and has lots of growth opportunities. The analyst is predicting spending on cloud initiatives could explode to $239 billion in the span of five years, with the Redmond, Washington software giant benefiting the most from the growth. Bracelin pointed to what he called unmatched product depth and breadth" in software as a service, platform as a service and infrastructure as a service as the main reasons. (See also: Microsoft's Azure Cloud Revenue Estimated at $3B.)

While Microsoft still makes the lions share of its money through software sales, its cloud computing business continues to grow. For the three months ending in March, it said revenue in its Intelligent Cloud business came in at $6.8 billion, up 11% compared to the year ago and up 12% on a constant currency basis. During the third quarter, the company said server products and cloud services revenue increased 15%, driven by Azure cloud revenue growth of 93%. Our results this quarter reflect the trust customers are placing in the Microsoft Cloud, said Satya Nadella, chief executive officer at Microsoft said at the time. From large multi-nationals to small and medium businesses to non-profits all over the world, organizations are using Microsofts cloud platforms to power their digital transformation. (See also: Credit Suisse Bullish on Microsoft Cloud Business)

Pacific Crest isnt writing off Amazon completely in the cloud market, despite predicting the rise of its main rival and even though it has seen revenue growth at AWS decline for seven quarters in a row. Bracelin said that business appears to be increasing during the second quarter, with revenue growth of 9% sequentially forecasted. "We remain bullish on the five year prospects for AWS and are encouraged by 2Q cloud activity picking up," Bracelin wrote. "However, investor optimism is partially reflected in the valuation."

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Microsoft Could Surpass Amazon in Cloud Computing This Year (AMZN, MSFT) - Investopedia

Alibaba Cloud Joins Cloud Native Computing Foundation Announces as Gold Member – PR Newswire (press release)

Since CNCF was founded, Alibaba Cloud has been contributing code to projects under its umbrella, like Kubernetes and containerd. Now, as a Foundation member, Alibaba Cloud plans to integrate relevant CNCF projects into its own products equipping its developers and customers worldwide with agile architecture and dynamic applications.

"Alibaba Cloud is a keen advocate for a cloud native ecosystem that promotes open source technologies and service standardization. We offer a cloud native environment that enables micro-service architecture, which is revolutionizing the way applications are deployed and managed," said Tang Hong, Chief Architect at Alibaba Cloud. "We look forward to contributing to the CNCF community by adopting technologies developed through CNCF projects, contributing code to the projects and collaborating with fellow members."

CNCF is a proud Gold Sponsor of LinuxCon + ContainerCon + CloudOpen China and will have a booth located at B04 staffed with the Foundation team and member company technologists. At the event, Kohn will present "Migrating Legacy Monoliths to Cloud Native Microservices Architectures on Kubernetes" at 11:40 am CST on Tuesday, June 20 in Room 309A.

Additional Resources

About Cloud Native Computing FoundationCloud native computing uses an open source software stack to deploy applications as microservices, packaging each part into its own container, and dynamically orchestrating those containers to optimize resource utilization. The Cloud Native Computing Foundation (CNCF) hosts critical components of those software stacks including Kubernetes, Fluentd, Linkerd, Prometheus, OpenTracing, gRPC, CoreDNS, containerd, rkt and CNI; brings together the industry's top developers, end users and vendors; and serves as a neutral home for collaboration. CNCF is part of The Linux Foundation, a nonprofit organization. For more information about CNCF, please visit: https://cncf.io/.

The Linux Foundation has registered trademarks and uses trademarks. For a list of trademarks of The Linux Foundation, please see our trademark usage page: https://www.linuxfoundation.org/trademark-usage. Linux is a registered trademark of Linus Torvalds.

Media ContactNatasha Woods The Linux Foundation (415) 312-5289 PR@CNCF.io

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https://cncf.io/

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Alibaba Cloud Joins Cloud Native Computing Foundation Announces as Gold Member - PR Newswire (press release)

Gartner’s IaaS Magic Quadrant 2017: AWS and Azure power on as smaller players come back – Cloud Tech

Gartner has released its latest Magic Quadrant for cloud infrastructure and a service (IaaS) and while Amazon Web Services (AWS) and Microsoft will continue to get the plaudits, the real story is to be found nearer the bottom left.

As per 2016, AWS and Microsoft are the only two companies in the leaders zone, with Google pushing hard in the visionaries side, with Microsoft moving closer to AWS in terms of completeness of vision year over year.

Yet while there were only 10 vendors in the 2016 analysis with this publication noting a more mature market as a result 14 companies appear this year. New players, and some old faces, appearing in this edition include Interoute, Joyent acquired by Samsung in August and Skytap in the niche players section, as well as Alibaba Cloud moving straight into the visionaries section, alongside the likes of IBM and Oracle.

Naturally, AWS and Microsoft noted their delight at their continued performance in Gartners analysis. Every product planning session at AWS revolves around customers we do our best to listen and to learn, and to use what we hear to build the roadmaps for future development, said Jeff Barr, AWS chief evangelist in a blog post. I strongly believe that this customer-driven innovation has helped us to secure the top right corner of the Leaders quadrant for the seventh consecutive year.

Barr said that 90% of the companys roadmap was through customer requests, while Microsoft noted that more than 90% of the Fortune 500 use its cloud services, adding that it was a leader in no less than 13 Gartner MQs. We strongly believe that the momentum were seeing has been possible because of what Azure offers and stands for a comprehensive and secure cloud platform across IaaS and PaaS, unparalleled integration with Office 365, unique hybrid experience with Azure Stack, first-class support for Linux and open source tooling, and a robust partner ecosystem, wrote Venkat Gattamneni, Azure director of product marketing.

The cautions for Microsoft were broadly similar to last year not being as completely enterprise-ready as it could be, with a focus on API enablement while AWS again had a note of caution sounded out around ease of use as well as the fact it has just begun to adapt to the emergence of meaningful competitors.

Alibaba, however, was praised for its potential to become an alternative to the global hyperscale cloud providers in select regions over time, with Gartner also noting its financial wherewithal to continue investing in new regions. The company announced plans to debut in India and Indonesia earlier this month, for example. Its weakness, according to the analysts, is lacking mind share and a limited track record outside of China.

Read more: How AWS and Azures competition improves public cloud adoption

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Gartner's IaaS Magic Quadrant 2017: AWS and Azure power on as smaller players come back - Cloud Tech

Gartner: Cloud-based security services market to hit almost $9bn by 2020 – Cloud Tech

Gartner has predicted the global cloud-based security services market will hit $5.9 billion this year, saying the segments growth will remain strong.

The analyst firm looked at a variety of segments, with identity and access management (IAM), identity as a service (IDaaS) and user authentication remaining the biggest category. Gartner predicts this area to comprise $2.1bn, or 35.6% of the overall market, this year, going up to $3.42bn, or 38.3% of the overall $8.92bn market by 2020.

Secure email gateway ($702m) and secure web gateway ($707m) were the next largest categories, with the latter expecting to outstrip the former to the tune of almost $100m by 2020. Application security testing, at almost $400m ($397.3m) this year, leads the remaining categories, ahead of security information and event management (SIEM) at $359m and remote vulnerability assessment at $250m. Other cloud-based security services amounted to $1.3bn.

The announcement, which took place during the Gartner Security & Risk Management Summit this week, also examined the landscape for businesses of different sizes. SMBs are driving growth as they become more aware of security threats, while enterprises are also on board as they realise the operational benefits derived from a cloud-based security delivery model.

Cloud-based delivery models will remain a popular choice for security practices, with deployment expanding further to controls, such as cloud-based sandboxing and WAFs (web application firewalls), said Ruggero Contu, research director at Gartner.

The ability to leverage security controls that are delivered, updated and managed through the cloud and therefore require less time-consuming and costly implementations and maintenance activities is of significant value to enterprises, Contu added.

This complements a report issued by fellow analyst firm Forrester Research earlier this month, which said cloud security spending would hit $3.5 billion by 2021 at a 28% annual growth rate.

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Gartner: Cloud-based security services market to hit almost $9bn by 2020 - Cloud Tech

Alibaba to enter European cloud computing market in mid-2017 – Air Cargo World (registration)

As it seeks to expand its global reach outside China, Alibaba Cloud announced that it will introduce MaxCompute, to Europes US$18.9 billion cloud computing market in the second half of 2017.

The E.U. cloud market is smaller than, say, its U.S. counterpart, but it is already populated by the likes of Amazon, Salesforce, Microsoft and IBM, setting the stage for competition. Alibaba said it hopes to get a piece of this action by convincing E.U. businesses that its artificial intelligence (AI) features can, unlock the immense value of their data, using a highly secure and scalable cloud infrastructure and AI programs, said Wanli Min, an Alibaba Cloud scientist responsible for AI and data-mining.

The Chinese cloud providers AI program is already popular in China, where it has been applied to easing traffic congestion, diagnosing disease through medical imaging, and even predicting the winners of reality show contests.

MaxCompute intends to deliver these same services to the E.U. market, using advanced AI and deep -earning technologies and algorithms for data storage, modeling and analytics.

Alibaba Cloud opened its first European data center in Germany in late 2016. The company has not revealed what its E.U. customer base looks like, but said it is in discussions with companies in Europe about using MaxCompute.

Alibaba corporate headquarters

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Alibaba to enter European cloud computing market in mid-2017 - Air Cargo World (registration)

Pressing Tech Issue: Enterprise software vs. cloud computing? – Credit Union Times

One ofRobert Frost's most popular poemscontains more than a few parallels with what insurance technology executives are grappling with as they look at systems in the cloud compared with systems housed within their own organizations.Consider this classic verse:

"Two roads diverged in a wood, and I...

I took the one less traveled by,

And that has made all the difference."

Certainly there are many who are opting for the less-traveled SaaS road, and others who prefer the other road commonly called enterprise.

Within the insurance industry, cloud technologies have been successfully deployed in ancillary areas of the organization such as Human Resources, Accounting, e-mail, and other non-core areas of the business. Typically, those core applications such as policy administration, agent commissions, rating, billing, claims, and agent and customer portals have been firmly entrenched in enterprise or on-premises applications.

However, with the success of cloud-based software in those non-mission critical areas,SaaS systems are becoming the favored choice for deployment in certain core insurance areas. But for those core tasks that are truly mission critical, have deep integration requirements and importantly, are processor intensive, IT executives are taking a go-slow approach before they commit to putting those systems or business processes into the cloud.

Why the concern? The short answer is that enterprise software is "owned" by the insurance carrier, and the risks of a data breach of sensitive information is relatively low when the application is housed behind the insurance companys firewall. Insurance companies are huge repositories of customers personal information. And that information is entrusted to the insurance company with the expectation that it will remain private and confidential.

In short,enterprise software deployments merit a certain kind of securitythat is hard to duplicate in a cloud-based system.

Another aspect to consider is processing horsepower. Saving and retrieving data such as we see in popular CRM systems like Salesforce.com is not particularly processor intensive. Tasks with intensive calculation requirements, such as commissions and bonus calculation, are another matter. These systems can often have more than a hundred integration points both up- and downstream, and managing them in the cloud is a major concern to many insurers.

According to recent research from Novarica, the key driver for carriers adopting SaaS systems was "the speed of deployment and the ability to sunset current applications." (Photo: iStock)

Among the common drivers for carriers to adopt SaaS system, according toNovarica, were standardization paired with release management, which reduces support costs and ultimately lowers the cost of ownership. However, that standardization, call it efficiency, is largely a trade-off between having key business processes undifferentiated from competitors that are on that same SaaS application and having a custom designed application that preserves competitive differentiation.

Large companies see being able to differentiate from competitors as a key advantage of the on-premises model. Additionally, large companies havevery large IT staffs that are capable of implementing and managing new applications.

Cost is clearly another factor in making SaaS a viable choice for many core insurance applications. For mid-tier and smaller insurance organizations, the advantages of SaaS are clear:

No infrastructure costs;

Software is on a subscription model that includes maintenance and upgrades; and

Provisioning is very easy.

With SaaS, a smaller insurance company can readily compete with the 'big guys.' While some simple back-of-the-napkin analysis can show advantages for SaaS, the analysis is really an apples-to-oranges comparison. A more detailed look at cost and a few other items show that cost may not be the main concern.

You may not appreciate the importance of some of the items buried in the fine print of SaaS solution provider contracts. Items such as transaction volume, number of processes allowed per month, data storage fees, data transformation costs and other items can result in significant additional fees levied by the vendor that must be met for subscription compliance.

If you dont understand and carefully quantify each item in the SaaS agreement, fees can easily double or triple but you might not realize the impact until the solution is implemented and in full production and you receive your first over-usage invoice. (Photo: iStock)

In order to get a full assessment of hosted versus on-premises factors such as implementation, customization,upgrade cycles, support and maintenance, security,scalability, and integration(s)must be understood. For example, implementing a SaaS application is relatively easy, since it is using a ready-made platform that has already been provisioned, while on-premises applications take resources, equipment, and time to set up a new environment. In essence, the financial choice is whether the new system will tap the operating expense budget or the capital expense budget.

The key in assessing the advantages and disadvantages of SaaS or on-premises is one that is common to all technology acquisitions the vendor. At the outset, the absolute key requirement is that the vendor has extensive experience withininsurance technology. There are many vendors that purport to have deep domain experience in insurance. From what Ive observed, however, in many applications sold to insurance companies vendors are very likely taking a horizontal application and providing some level of uniqueness that makes it salable to insurance companies. This is very common in CRM and commissions applications, where vendors have created hundreds of applications from managing sales to managing human resources to managing inventory. Vendors will claim insurance expertise, but a look under the hood will usually reveal an application that was built for, say, telecommunications or pharmaceuticals and verticalized to make it acceptable to insurance carriers and distributors. Its the old "one-size fits all" mentality.

Where the rubber hits the road invendor selectionis in looking at a vendors expertise in integration and security. As experienced insurance IT managers are aware, insurance infrastructure can be a hodge-podge of technologies and applications that run the gamut from fairly modern to legacy. A vendor that doesnt have a track record of successful implementations with a variety of technologies is one that probably shouldnt be on your short list. As a starting point, look for applications with embedded integration platforms that you (not the SaaS IT/Support team) will have full access to. The same thing can be said regarding the privacy and security of data and personal and private information.

Insurance carriers are very aware of the security implications of SaaS, where security is dependent on the vendor. A corollary to the vendors experience in integrations is the vendors experience in implementing fixes of the software or migrating existing clients to new versions of the software. Again, vendors that have dozens of satisfied clients are more likely to have the experience and talent to become a credible business partner. One more tip on vendor selection.

Ask for a report detailing system outages for the last two years that shows the nature of the outage, core issue and time to resolution. If the vendor refuses to deliver this document, think again about adding them to your short list.

Some large vendors in our space have recently dropped their on-premise solutions and 'gone all in' for the cloud. It might be a safer to go with a vendor that can provide cloudoron-premise solutions, leaving the final hosting decision in your hands. You can always migrate to the cloud later if youre not comfortable with the change. The choice between the cloud and on-premises is very much like choosing between the two paths that 'diverged in the wood.'

There are certainly advantages to each alternative, but ultimately the key driver is whether the vendor can accommodate both software delivery models, on-premises and SaaS. Vendors that have the capability to work with clients with unique requirements that mandate enterprise software or SaaS are vendors that have the overall experience to help you choose which path to take.

John Sarichis an industry analyst and VP of Strategy atVUE Software. He is a senior solutions architect, strategic consultant and business advisor with over 25 years of insurance industry experience.He can be reached atJohn.Sarich@VUESoftware.com.

Originally published on PropertyCasualty360. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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Pressing Tech Issue: Enterprise software vs. cloud computing? - Credit Union Times

Why automation driven by cloud technologies is becoming more critical for organisations – Cloud Tech

More than half of respondents in a survey carried out by managed cloud provider 2nd Watch say at least half of their deployment pipelines are automated, with 63% saying they can deploy new applications in less than six weeks.

The study, which garnered responses from more than 1,000 participants from US companies with at least 1,000 employees, found that companies embracing cloud automation were able to deploy new applications and workloads faster and more frequently.

Alongside the almost two thirds who said deploying new applications took less than six weeks, 44% said deploying new code to production took a day or less, while 54% say they are deploying new code changes at least once a week. A similar number (55%) say they are measuring application quality by testing everything, while two thirds argue at least half of all their quality assessments, such as lint and unit tests, are also automated.

The survey results reiterate what were hearing from clients and prospects: automation, driven by cloud technologies, is critical to the rapid delivery of new workloads and applications, said Jeff Aden, 2nd Watch co-founder. Companies are automating everything from artifact creation to deployment pipelines and process, which includes metrics, documentation and data.

The result is faster time to market for new applications, and less application downtime.

Earlier this month, a report from Puppet found particular discrepancies between higher and lower performing organisations when it came to automation. Top performing firms automated 72% of all configuration management processes on average, while lower ranked companies spent almost half (46%) of their time on manual configuration.

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Why automation driven by cloud technologies is becoming more critical for organisations - Cloud Tech

Amazon Web Services AI exec: How cloud computing is driving artificial intelligence breakthroughs – GeekWire

Artificial intelligence research is still in its infancy, at least as compared to computer science in general, but the concept of unlimited computing resources is accelerating the field.

As someone with nearly unlimited computing resources at his disposal, this is something Swami Sivasubramanian, vice president of AI at Amazon Web Services, is watching play out. Last week Sivasubramanian walked GeekWire Cloud Tech Summit attendees through the array of artificial intelligence and machine-learning services that his team has developed for AWS customers and Amazons own internal services as well.

If youve been through a few tech cycles, youve already heard a lot about artificial intelligence. Much has been promised from this research field over several decades, but the enormous amount of data now moving into cloud computing services like AWS and others allows researchers like Sivasubramanian to make real breakthroughs that werent possible when data sets were scattered and siloed.

Many of these algorithms, especially like deep learning neural nets, papers were written about even two decades ago. But what has accelerated adoption of it is that we have specialized compute infrastructure, such as GPUs, specialized CPUs, FPGAs (field programmable gate arrays), you name it, he said. The combination of huge data sets and powerful computing engines is making AI concepts previously confined to science fiction a reality.

Take two AWS customers: CSPAN and the sheriffs office of Washington County in Oregon. Using the companys Rekognition image-recognition service, both were able to automate tasks that required painstaking human labor. CSPAN can now automatically identify Congresspeople speaking on the floor of the House or Senate, saving someone from having to manually annotate those videos, and Washington County is using the service to help it process photo tips when it is looking for a person of interest in an investigation.

But its still very early days for AI applications: Sivasubramanian joked that this world is about where the field of databases was when btrees were invented in the early 1970s. Thats about to change, however, as we gain a greater understanding of how AI models work and develop more sophisticated ways of training these systems to accomplish real goals.

Watch the full video of Sivasubramanians GeekWire Cloud Tech Summit talk above, and stay tuned for more highlights from the event in the days ahead.

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Amazon Web Services AI exec: How cloud computing is driving artificial intelligence breakthroughs - GeekWire

Box launches Box Drive to help firms retire legacy network file share infrastructure – Cloud Tech

Cloud storage provider Box has announced the launch of Box Drive, a desktop application which aims to match the power of the cloud with the more familiar feel of traditional network drives.

The goal of the product is to make it easier to adopt the cloud without changing the way people work. The future of work is working in the cloud, the company notes. Box Drive makes moving to the cloud incredibly easy. Users are freed from the constraints of their local hard drives because they have instant access to all their files in the cloud and real-time collaboration is even more simple and intuitive.

Box Drive combines infinite access to the cloud with an intuitive, natively integrated desktop experiences that is familiar to hundreds of millions of people today in enterprises all over the world, said Aaron Levie, CEO and co-founder of Box in a statement. Not only will Box Drive make collaborating on content easier than ever before, it also signals the beginning of the end for expensive network file shares.

With Box Drive, enterprises can accelerate their move to the cloud, enhance security, and significantly reduce IT costs.

While not in the same ballpark with regards to technology, this move from Box is reminiscent of Amazon Web Services (AWS), who announced the general availability of Greengrass earlier this month. Greengrass enablers users to perform tasks on premise while leveraging the process, analytics and storage of the AWS cloud.

This differs from Box in that the storage provider is trying to help organisations phase out expensive legacy infrastructure such as traditional network file shares. The company added that estimated cost savings through retiring legacy tech across industries such as real estate, healthcare, and finance can be as high as $6 million over three years.

The product is free for all Box users and is available today in public beta. You can find out more here.

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Box launches Box Drive to help firms retire legacy network file share infrastructure - Cloud Tech