Cloud – Saas – 2015

January 12th, 2015 by Stephen Jones Leave a reply »

Amazon.com and Microsoft are locked in a battle to determine who will lead the cloud computing age. Corporate America is shifting from client-server computing, which began in the 1990s, to shared computing resources in the Internet cloud.

The cloud age is new but already Amazon (NASDAQ:AMZN) and Microsoft (NASDAQ:MSFT) have emerged as early leaders. Microsoft, dominated during the earlier PC-server computing cycle, and now aims to be a top player in cloud services. Amazon Web Services, part of e-commerce giant Amazon.com, is by far the leader in infrastructure-as-a-service. In IaaS, customers rent computers and data storage via the cloud

Accenture and Microsoft Corp. have expanded their long-standing alliance with the introduction of the Accenture Hybrid Cloud Solution for Microsoft Azure. The companies are co-funding and co-engineering this platform with new hybrid technologies and services to help enterprises to build and to manage enterprise-wide cloud infrastructure and applications.

Microsoft passed a milestone in its business overhaul for the cloud computing age. As 2015 starts, it has become the biggest seller of cloud services to business customers, vaulting past start-ups such as Salesforce.com and outpacing IBM and Oracle. While cloud services account for less than 5 per cent of revenues, the milestone is a sign that the world’s biggest software company is finally making headway as it looks beyond the PC era. (Financial Times)

The big three – Amazon Web Services (AWS), Microsoft and Google – have the infrastructure, range of offerings and financial clout to support highly-scalable, global public cloud services, and appear to be locked in a battle to the bottom on price that is unlikely to let up in the coming years.

A new IDC report estimates that in three years more than half of the money spent on software, servers and storage will be attributed to the cloud.

Cloud spending is projected to increase annually by 22.8 percent, nearly six times faster than the overall IT market, to reach $127 billion in 2018.

Analysis of cloud spending shows that 70 percent will be spent on SaaS, followed by infrastructure as a service (IaaS) and platform as a service (PaaS) spending.

After what a company executive said has been a “breakthrough year” in 2014 for its cloud computing business IBM is building out its global computing network to focus on the enterprise cloud market. The company announced that it is adding cloud centers in 11 new locations. In a $1.2 billion investment, IBM has built cloud centers in Frankfurt, Mexico City and Tokyo. The other eight new locations come to IBM through a partnership with Equinix Inc., which operates data centers across the globe. This is also in part a response to laws requiring the local retention of data following revelations over U.S. government Web surveillance as well as increased corporate compliance rules.

IBM has pared down its previously lengthy cloud computing services contracts to a two-page document, replacing what the vendor described as a “complex contract that typically required long negotiations and reviews before a deal was signed.” On cloud contracts, IBM (IBM) apparently not only believes simpler is better but also that streamlining its legal agreements gives it a distinct competitive advantage over its cloud service rivals.

At an event in Boston, Oracle’s cloud head Shawn Price talked about the software giant’s 5-year journey to become a key cloud computing company. Shawn Price spent five months heading up software giant SAP’s cloud efforts until he left the company in an executive reshuffling, only to reappear in October as the lead executive for cloud computing rival Oracle. Two months later, the former CEO of SuccessFactors was a key figure at the company’s Cloud World event, giving a keynote address to promote Oracle’s aggressive efforts to expand its cloud computing capabilities, from optimizing its broad array of enterprise and data base applications for the cloud to reworking its sales teams to deal with the changing ways businesses are buying technology, and with having to sell both cloud-based and on-premises solutions.

Recently, cloud giant Amazon Web Services rebooted its EC2 following a Xen hypervisor issue and it affected many customers. “It is a fact that at the end of the day, whether you’re in a cloud, you’re in a data center or in a server cloud, that there’s hardware and there’s outages,” said Lisa Noon, client partner at Cloud Technology Partners Inc. Noon discussed the AWS reboot among other cloud news on the Cloud Computing Weekly podcast with host David Linthicum

Analysts report that private clouds will reach an 85 percent adoption rate in the coming years.

Security issues are the main factor limiting the further use of cloud computing services, research from Eurostat has found. In a survey conducted by the European Commission’s Eurostat statistics service, public cloud computing was reportedly used by 24% of large enterprises and 12% of small and medium-sized enterprises (SMEs) in the EU.

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