CenturyLink May Finally Have Figured Out the Cloud

James Staten

After a couple less-than-home-runs in the cloud game, it looks like CenturyLink might just have a real contender. The US midwestern telecommunications leader pulled the trigger on yet another acquisition this morning - Tier 3, a legitimate cloud platform provider. The real question is whether this is the latest in a long string of acquisitions that have failed to hit the mark, or a sign that they finally got it right.

CenturyLink is a Lego company built through a string of acquisitions all bolted together. It rolled up several telecom players to get to its current size and presence in that market. And it has bought now three cloud companies. 

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CenturyLink-Savvis: Is The Rush To Cloud 1 + 1 = More Than 2 For Enterprise I&O?

James Staten

Hot on the heels of Verizon’s acquisition of Terremark comes today’s $3.2 billion purchase of Savvis by CenturyLink, signaling that the rush to be an enterprise cloud leader is on.

It seems that during every major shift in the telecommunications, service provider or hosting market there is a string of moves like these as players attempt to capitalize on the change to gain greater market position. And there are plenty of investors caught up in the opportunity who are willing to lend a few bucks. In the dot.com period, through 2000s, we saw major shifts in the service provider landscape as colo/hosting giants were created such as Cable & Wireless and Equinix.

But what does this mean for infrastructure & operations professionals looking to select a hosting or Infrastructure as a Service (IaaS) cloud provider? The key is in determining if 1 + 1 actually equals anything greater than 2.

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Informal Buyers Of IaaS Cloud Computing Are Driving The Market, Not Formal IT Buyers – Vendor Strategists Need Two Strategies

Frank Gillett

Cloud infrastructure-as-a-service (IaaS) is a hot market. Amazon Web Services, now five years old, drives a lot of attention and customer volume, but the vendor strategists at enterprise-facing providers such as IBM, HP, AT&T and Verizon have been building and delivering IaaS offerings. As I’ve studied the market, I’ve heard wildly different types of requirements from buyers and quite a range of offerings from service providers. Yet much of the industry dialogue is about one central idea of what IaaS is – think that’s wrong headed. I found that there were really two buyer types: 1) informal buyers outside of the IT operations/data center manager organizations, such as engineers, scientists, marketing executives, and developers, and 2) formal buyers, the IT operations and data center managers responsible for operating applications and maintaining infrastructure.

With this idea in mind, I set out to test the views of IT infrastructure buyers in the Forrsights Hardware Survey, Q3 2010 and learned that:

  • After 2+ years of cloud hype, only 6% of enterprises IT infrastructure respondents report using IaaS, with another 7% planning to implement by Q3, 2012. After flat adoption from 2008 to 2009, this represents an approximate doubling from 2009, off a very small base.
  • Almost two thirds of IT infrastructure buyers themselves don’t believe they are the primary buyer of cloud IaaS! We asked them which groups in their company are using or most interested in cloud IaaS. Only 36% of IT infrastructure buyers listed themselves, while 7% didn’t know. The rest, 58% said that IT developers, Web site owners, business unit owners of batch compute intensive apps, and other business unit developers were more interested in using IaaS than themselves.
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