Verizon Steps Into IaaS Cloud Leadership Ranks

Pop Quiz: What’s the fastest way to build a credible, enterprise-relevant and highly profitable cloud computing services practice? Buy one that already is. That’s exactly what Verizon did last week when it pushed $1.4B across the table to Terremark. Despite its internal efforts to build an infrastructure-as-a-service (IaaS) business over the last two years, Verizon simply couldn’t learn the best practices fast enough to have matched the gains in the market it received through this move. Terremark has one of the strongest IaaS hosting businesses in the market and perhaps the best enterprise mix in its customer base of the top tier providers. It also has a significant presence with government clients including the United States’ Government Services Agency (GSA) which has production systems running in a hybrid mode between Terremark’s IaaS and traditional managed hosting services.

Confidential Forrester client inquiries have shown struggles by Verizon to win competitive IaaS bids with its computing-as-a-service (CaaS) offering, often losing to Terremark. This led to Verizon reselling the Terremark solution (its CaaS for SMB) so they could try before the buy.

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Is The IaaS/PaaS Line Beginning To Blur?

Forrester’s survey and inquiry research shows that, when it comes to cloud computing choices, our enterprise customers are more interested in infrastructure-as-a-service (IaaS) than platform-as-a-service (PaaS) despite the fact that PaaS is simpler to use. Well, this line is beginning to blur thanks to new offerings from Amazon Web Services LLC and upstart Standing Cloud.

The concern about PaaS lies around lock-in, as developers and infrastructure and operations professionals fear that by writing to the PaaS layer’s services their application will lose portability (this concern has long been a middleware concern — PaaS or otherwise). As a result, IaaS platforms that let you control the deployment model down to middleware, OS and VM resource choice are more open and portable. The tradeoff though, is that developer autonomy comes with a degree of complexity. As the below figure shows, there is a direct correlation between the degree of abstraction a cloud service provides and the skill set required by the customer. If your development skills are limited to scripting, web page design and form creation, most SaaS platforms provide the right abstraction for you to be productive. If you are a true coder with skills around Java, C# or other languages, PaaS offerings let you build more complex applications and integrations without you having to manage middleware, OS or infrastructure configuration. The PaaS services take care of this. IaaS, however, requires you to know this stuff. As a result, cloud services have an inverse pyramid of potential customers. Despite the fact that IaaS is more appealing to enterprise customers, it is the hardest to use.

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Cloud Predictions For 2011: Gains From Early Experiences Come Alive

The second half of 2010 has laid a foundation in the infrastructure-as-a-service (IaaS) market that looks to make 2011 a landmark year. Moves by a variety of players may just turn this into a vibrant, steady market rather than today’s Amazon Web Services and a distant race for second. VMware vCloud Director finally shipped after much delay — a break from VMware’s rather steady on-time execution prior — and will power both ISP public clouds and enterprise private efforts in 2011. VMops changed its name and landed a passel of service providers; we’ll see if they live up to be the “.com” in Cloud.comOpenStack came out of the gate with strong ISV support and small ISP momentum; 2011 may prove a make-or-break year for the open source upstart. And nearly every enter

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Unlock The Value Of Your Data With Azure DataMarket

If the next eBay blasts onto the scene but no one sees it happen, does it make a sound? Bob Muglia, in his keynote yesterday at the Microsoft Professional Developers Conference, announced a slew of enhancements for the Windows Azure cloud platform but glossed over a new feature that may turn out to be more valuable to your business than the entire platform-as-a-service (PaaS) market. That feature (so poorly positioned as an “aisle” in the Windows Azure Marketplace) is Azure DataMarket, the former Project Dallas. The basics of this offering are pretty underwhelming – it’s a place where data sets can be stored and accessed, much like Public Data Sets on Amazon Web Services and those hosted by Google labs. But what makes Microsoft’s offering different is the mechanisms around these data sets that make access and monetization far easier.

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Windows Azure Crosses Over To IaaS

At its Professional Developers Conference this week, Microsoft made the long-awaited debut of its Infrastructure as a Service (IaaS) solution, under the guise of the “VM-role” putting the service in direct competition with Amazon Web Services’ Elastic Compute Cloud (EC2) and other IaaS competitors. But before you paint its offering as a "me too," (and yes, there is plenty of fast-follower behavior in today’s announcements), this move is a differentiator for Microsoft as much of its platform as a service (PaaS) value carries down to this new role, resulting in more of a blended offering that may be a better fit with many modern applications.

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Free Isn't The Half Of It. AWS Pushes Cloud Economics Further

This week Amazon Web Services announced a new pricing tier for its Elastic Compute Cloud (EC2) service and in doing so has differentiated its offering even further. At first blush the free tier sounds like a free trial, which isn't anything new in cloud computing. True, the free tier is time-limited, but you get 12 months, and capacity limited, along multiple dimensions. But it's also a new pricing band. And for three of its services, SimpleDB, Simple Queueing Service (SQS), and Simple Notification Service (SNS) the free tier is indefinite. Look for Amazon to lift the 12 month limit on this service next October, because the free tier will drive revenues for AWS long term. Here's why:

A few weeks back I posted a story about how one of our clients has been turning cloud economics to their advantage by flipping the concept of capacity planning on its head. Their strategy was to concentrate not on how much capacity they would need when their application got hot, but on how they could reduce its capacity footprint when it wasn't. As small as they could get it, they couldn't shrink it to the point where they incurred no cost at all; they were left with at least a storage and a caching bill. Now with the free tier, they can achieve a no-cost footprint. 

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Will IT Fall Beneath The Shadows?

A funny thing happened while we in IT were focused on ITIL, data center consolidation and standardization. The business went shopping for better technology solutions. We’ve been their go-to department for technology since the mainframe days and have been doing what they asked. When they wanted higher SLAs we invested in high availability solutions. When they asked for greater flexibility we empowered them with client-server, application servers and now virtual machines. All the while they have relentlessly badgered us for lower costs and greater efficiencies. And we’ve given it to them. And until recently, they seemed satisfied. Or so we thought.

Sure, we’ve tolerated the occasional SaaS application here and there. We’ve let them bring in Macs (just not too many of them) and we’ve even supported their pesky smart phones. But each time they came running to us for assistance when the technical support need grew too great.

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AP's API Empowers New Media Through AWS And Azure

 

It’s no secret traditional news organizations are struggling to stay relevant today in an age where an always-connected generation has little use for newspaper subscriptions and nightly news programs. The Associated Press (AP), the world's oldest and largest news cooperative, is one such organization who has felt the threats which this paradigm shift carries and thus the need to intensify its innovation efforts. However, like many organizations today, its in-house IT Ops and business processes weren’t versatile enough for the kind of innovation needed.

"The business had identified a lot of new opportunities we just weren't able to pursue because our traditional syndication services couldn't support them," said Alan Wintroub, director of development, enterprise application services at the AP, "but the bottom line is that we can't afford not to try this."

To make AP easily accessible for emerging Internet services, social networks, and mobile applications, the nearly 164-year-old news syndicate needed to provide new means of integration that let these customers serve themselves and do more with the content — mash it up with other content, repackage it, reformat it, slice it up, and deliver it in ways AP never could think of —  or certainly never originally intended.

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To Get Cloud Economics Right, Think Small, Very, Very Small

A startup, who wishes to remain anonymous, is delivering an innovative new business service from an IaaS cloud and most of the time pays next to nothing to do this. This isn't a story about pennies per virtual server per hour - sure they take advantage of that- but more a nuance of cloud optimization any enterprise can follow: reverse capacity planning

Most of us are familiar with the black art of capacity planning. You take an application, simulate load against it, trying to approximate the amount of traffic it will face in production, then provision the resources to accommodate this load. With web applications we tend to capacity plan against expected peak, which is very hard to estimate - even if historical data exists. You capacity plan to peak because you don't want to be overloaded and cause the client to wait, error out, or go to your competition for your service.

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You're Not Yet A Cloud - Get On The Path Today

 With all the hype and progress happening around cloud computing, we know that our infrastructure and operations professional clients are under pressure to have a cloud answer. This is causing some unproductive behavior and a lot of defensiveness. A growing trend is to declare victory – point to your virtual infrastructure where you can provision a VM in a few seconds and say, “See, I’m  a cloud.” But you aren’t, really. And I think you know that.

Being a cloud means more than just using server virtualization. It means you have the people, process, and tools in place to deliver IT on demand, via automation, are sharing resources so you can maximize the utilization of assets and are enabling your company to act nimbly. In our latest Forrester report we document that to be a cloud you need to have:

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