Tuesday, September 6, 2011
Defence 'market tests' Oracle providers
Defence 'market tests' Oracle providers: Australia’s major Defence intelligence agencies will shortly move to a new direct-source relationship for their Oracle-based hardware, software and services.
What value do Cloud Brokers add?
As cloud-based services proliferate, what will this mean for CIOs and consumers? It means it is becoming complicated! And choosing the best service and service provider is increasingly difficult.
Enter the Cloud Broker
What are Cloud brokers? Gartner defines them as “a type of Cloud service provider that plays an intermediary role in Cloud computing”. In other words, they act on your behalf to sift through the various offerings and help or advise you on what’s best for your needs, and if indeed Cloud options exist that will suit you. In other words, somebody who is independent of Cloud service providers, who will find you the best deal, and who is hopefully not influenced by the commission received from the providers.
In-depth: Legal issues in the Cloud.
Who are the Cloud brokers? Frankly, many who say they are, aren’t. Many so-called ‘brokers’ are no more than companies offering a range of ‘as-a-service’ products, with these being either their own services or those of close partners. In other words, salespeople offering a selection from their existing portfolio. Some were ‘half’ brokers, such as telecoms hardware suppliers who will set you up with a carrier of your choice, similar to the way some homebuilders might ‘broker’ a deal with mortgage providers.
This might be because, as Gartner’s Cloud computing hype cycle puts it, brokerage is down in the bottom left of the curve — the ‘technology trigger’ area — with adoption five to 10 years away. Even so, it predicts that “through 2015, Cloud service brokerage will represent the single largest revenue growth opportunity in Cloud computing”. Some players, however, are not so guarded about the time it will take for the industry to mature.
Marcus Fraumano, general manager of Data Centre eXchange (DCX), says five years is too conservative. Fraumano claims his firm is the only true independent Cloud broker in Australia. He admits that customers are not actively seeking the services of a broker, and general market awareness is weak, but he does say, “I think people will quickly recognise that the broker is adding value in a number of ways”.
“The Cloud computing market is still relatively immature, and this immaturity extends through to the understanding of the role of a broker.”
The role of a broker
What is that role? Brian Prentice, research vice-president for Gartner — one of the key commentators on Cloud brokerage — suggests there are three models for the broker’s role, each increasingly sophisticated. A broker who lines up a single supplier for a single task is probably not doing CIOs any great favour. This is what mortgage brokers do. True models of Cloud brokerage are more involved.
Firstly, Prentice says, there is ‘compositing’, which means taking bits and pieces of others’ services and packaging them together. It makes life less complex for CIOs by having somebody else vet the various suppliers. Prentice says it also means that other brokers can come in and duplicate the service, which is bad for brokers but possibly good for customers.
The second model involves compositing but the broker adds its own intellectual property (IP). It could be a proprietary service in its own right, or it could be the ‘binding’ tool that glues service suppliers’ products together. The mode of delivery (interfaces and so on) could also be an IP value-add.
Thirdly — and this is Gartner’s recommended model for brokers — is the service as ‘property’, or platform provider, in the same way a retailer’s floorspace is rented out to other suppliers. Picture cosmetics stands in a large department store where the store owns the building and the make-up and perfume companies pay for the floorspace.
It is a similar situation in supermarkets, where the operator takes a fee from a supplier in return allocating premium spots with the most exposure, or even to including them at all in the product range.
The question here, of course, is how independent a broker becomes if they have a relationship with specific ‘floor space renters’.
“We cannot be truly independent in the sense we need a formal relationship with vendors to be paid the commission that accrues,” Fraumano says.
“However we are independent in that we are not constrained by the portfolio of any single vendor. The key for us is that the Cloud solutions we recommend are based on what will best suit the client.”
So, do you buy direct or use a broker? Considering brokers receive a commission, it may not be the least expensive option. CIOs must also consider what value, if any, is added to the end product.
According to Gartner, “Cloud services brokerage makes it easier, safer and more productive for companies to navigate, integrate, consume, extend and maintain Cloud services, particularly when they span multiple, diverse Cloud services providers”.
Prentice adds, however, that the more complex a supply chain becomes — and brokers place themselves as one element in that chain — the more opaque the value chain becomes. Each level must be sure of the quality of other service providers. There is an inherent risk; if one element breaks down or fails to supply, the whole chain is in danger of collapse. The complex supply chain, then, could increase risk rather than decreasing it.
James Foster, chief technology strategist at SAS Australia, makes the point that, as far as he’s concerned, it’s the one-on-one relationship between the supplier and the customer which is vital. If brokers withdraw from the day-to-day activities of the Cloud-customer relationship once a deal is struck, including implementation, the CIO is back to dealing with a range of suppliers individually.
It is the very thing the broker role was supposed to obviate. If brokers continue to play a role beyond making deals — adding value and IP — then they may have a role in the future.
At the moment, however, the market is immature. There are a few players and perhaps fewer customers, many companies are not offering true brokerage and many customers still unsure of the nature and benefits of Cloud. For now, the question remains: Is brokerage worth it, or is it simply a hyped concept of another hyped concept?
Enter the Cloud Broker
What are Cloud brokers? Gartner defines them as “a type of Cloud service provider that plays an intermediary role in Cloud computing”. In other words, they act on your behalf to sift through the various offerings and help or advise you on what’s best for your needs, and if indeed Cloud options exist that will suit you. In other words, somebody who is independent of Cloud service providers, who will find you the best deal, and who is hopefully not influenced by the commission received from the providers.
In-depth: Legal issues in the Cloud.
Who are the Cloud brokers? Frankly, many who say they are, aren’t. Many so-called ‘brokers’ are no more than companies offering a range of ‘as-a-service’ products, with these being either their own services or those of close partners. In other words, salespeople offering a selection from their existing portfolio. Some were ‘half’ brokers, such as telecoms hardware suppliers who will set you up with a carrier of your choice, similar to the way some homebuilders might ‘broker’ a deal with mortgage providers.
This might be because, as Gartner’s Cloud computing hype cycle puts it, brokerage is down in the bottom left of the curve — the ‘technology trigger’ area — with adoption five to 10 years away. Even so, it predicts that “through 2015, Cloud service brokerage will represent the single largest revenue growth opportunity in Cloud computing”. Some players, however, are not so guarded about the time it will take for the industry to mature.
Marcus Fraumano, general manager of Data Centre eXchange (DCX), says five years is too conservative. Fraumano claims his firm is the only true independent Cloud broker in Australia. He admits that customers are not actively seeking the services of a broker, and general market awareness is weak, but he does say, “I think people will quickly recognise that the broker is adding value in a number of ways”.
“The Cloud computing market is still relatively immature, and this immaturity extends through to the understanding of the role of a broker.”
The role of a broker
What is that role? Brian Prentice, research vice-president for Gartner — one of the key commentators on Cloud brokerage — suggests there are three models for the broker’s role, each increasingly sophisticated. A broker who lines up a single supplier for a single task is probably not doing CIOs any great favour. This is what mortgage brokers do. True models of Cloud brokerage are more involved.
Firstly, Prentice says, there is ‘compositing’, which means taking bits and pieces of others’ services and packaging them together. It makes life less complex for CIOs by having somebody else vet the various suppliers. Prentice says it also means that other brokers can come in and duplicate the service, which is bad for brokers but possibly good for customers.
The second model involves compositing but the broker adds its own intellectual property (IP). It could be a proprietary service in its own right, or it could be the ‘binding’ tool that glues service suppliers’ products together. The mode of delivery (interfaces and so on) could also be an IP value-add.
Thirdly — and this is Gartner’s recommended model for brokers — is the service as ‘property’, or platform provider, in the same way a retailer’s floorspace is rented out to other suppliers. Picture cosmetics stands in a large department store where the store owns the building and the make-up and perfume companies pay for the floorspace.
It is a similar situation in supermarkets, where the operator takes a fee from a supplier in return allocating premium spots with the most exposure, or even to including them at all in the product range.
The question here, of course, is how independent a broker becomes if they have a relationship with specific ‘floor space renters’.
“We cannot be truly independent in the sense we need a formal relationship with vendors to be paid the commission that accrues,” Fraumano says.
“However we are independent in that we are not constrained by the portfolio of any single vendor. The key for us is that the Cloud solutions we recommend are based on what will best suit the client.”
So, do you buy direct or use a broker? Considering brokers receive a commission, it may not be the least expensive option. CIOs must also consider what value, if any, is added to the end product.
According to Gartner, “Cloud services brokerage makes it easier, safer and more productive for companies to navigate, integrate, consume, extend and maintain Cloud services, particularly when they span multiple, diverse Cloud services providers”.
Prentice adds, however, that the more complex a supply chain becomes — and brokers place themselves as one element in that chain — the more opaque the value chain becomes. Each level must be sure of the quality of other service providers. There is an inherent risk; if one element breaks down or fails to supply, the whole chain is in danger of collapse. The complex supply chain, then, could increase risk rather than decreasing it.
James Foster, chief technology strategist at SAS Australia, makes the point that, as far as he’s concerned, it’s the one-on-one relationship between the supplier and the customer which is vital. If brokers withdraw from the day-to-day activities of the Cloud-customer relationship once a deal is struck, including implementation, the CIO is back to dealing with a range of suppliers individually.
It is the very thing the broker role was supposed to obviate. If brokers continue to play a role beyond making deals — adding value and IP — then they may have a role in the future.
At the moment, however, the market is immature. There are a few players and perhaps fewer customers, many companies are not offering true brokerage and many customers still unsure of the nature and benefits of Cloud. For now, the question remains: Is brokerage worth it, or is it simply a hyped concept of another hyped concept?
IBM Builds a Cloud Computing Platform in China
IBM Builds a Cloud Computing Platform in China
IBM has been contracted to build a cloud computing platform that will improve the life of citizens in China via an online portal for a range of social services. A citizen livelihood service information network will cover a population of 300 million.
The company has been selected by Yi Lian Zhong Information Technology (YLZ), a provider of information services in China, which will use an IBM System z mainframe running Linux as the foundation to expand its existing services available in Fujian Province to seven more Chinese provinces.
Known for its reliability, security and cost effectiveness, System z can also scale easily and will help YLZ to manage transaction peaks and valleys without incurring additional costs.
Through their new cloud platform, IBM and YLZ will aim to meet the Chinese government’s 12th five-year-plan dedicated to develop programs to improve the citizen’s overall well-being.
In addition to enabling the sharing of public resources and information, the new cloud services platform will support service integration, improve government efficiency and ensure effective administration of citizen services.
As per the agreement between YLZ and IBM, the data and business application will be integrated through the cloud of all participating organizations. This integration will allow the residents in the rural areas to access the same services as residents in cities.
Thanks to the alliance between the two companies, Chinese citizens will be able to access a range of services from one portal, including payment of social insurance contributions and utilities, account transfers, medical fee reimbursements, and medical and unemployment benefits.
Citizens will also be able to access information about job and training opportunities and benefit from support services for scheduling clinical appointments, self-service medical fee settlement, case referral and group diagnosis.
By Anuradha Shukla
IBM has been contracted to build a cloud computing platform that will improve the life of citizens in China via an online portal for a range of social services. A citizen livelihood service information network will cover a population of 300 million.
The company has been selected by Yi Lian Zhong Information Technology (YLZ), a provider of information services in China, which will use an IBM System z mainframe running Linux as the foundation to expand its existing services available in Fujian Province to seven more Chinese provinces.
Known for its reliability, security and cost effectiveness, System z can also scale easily and will help YLZ to manage transaction peaks and valleys without incurring additional costs.
Through their new cloud platform, IBM and YLZ will aim to meet the Chinese government’s 12th five-year-plan dedicated to develop programs to improve the citizen’s overall well-being.
In addition to enabling the sharing of public resources and information, the new cloud services platform will support service integration, improve government efficiency and ensure effective administration of citizen services.
As per the agreement between YLZ and IBM, the data and business application will be integrated through the cloud of all participating organizations. This integration will allow the residents in the rural areas to access the same services as residents in cities.
Thanks to the alliance between the two companies, Chinese citizens will be able to access a range of services from one portal, including payment of social insurance contributions and utilities, account transfers, medical fee reimbursements, and medical and unemployment benefits.
Citizens will also be able to access information about job and training opportunities and benefit from support services for scheduling clinical appointments, self-service medical fee settlement, case referral and group diagnosis.
By Anuradha Shukla
SOASTA CloudTest Lite Hands-On
SOASTA CloudTest Lite Hands-On:
Cloud performance testing company SOASTA released a free version of its product yesterday. The company is known for running very large-scale tests against heavily-trafficked sites to ensure they can withstand high load factors. The large-scale version of SOASTA runs out of the cloud, but the free version, called CloudTest Lite, is delivered as a virtual appliance to be run on a local machine.
Quantivo Announces Cloud-Based Big-Data Analytics
Quantivo Announces Cloud-Based Big-Data Analytics:
Quantivo, a data analytics firm, announced today that it plans to offer big-data analytics as a cloud-based service to organizations of all sizes.
Quantivo enables users to analyze their data and find patterns that can lead to more revenue. For example: users can analyze their customer’s online behavior and online experience, and detect ways to optimize their website to increase sales. By having quick actionable data available, customers can create new revenue streams and realize a significant return on investment.
According to the company, “business users will be able to execute queries using ‘train of thought’ analysis against billions of records, across disparate data sources faster than competing analytic offerings, gain immediate insight to identify patterns in their data, and scale the breadth of their processing and storage as needed, without incurring the traditional tradeoff between capping costs and maintaining superior performance.”
Quantivo recently appointed Dave Robbins as CEO. Robbins is credited for successfully introducing industry-disrupting technologies into fast-growing market segments and most recently grew BigFix from start-up to a $400 million business, and then drove its acquisition by IBM in February 2011.
Dave Robbins said: “We see a huge market opportunity for addressing big-data analytics amidst the overall $24 billion business-analytics software market. The rise of big data, together with the unparalleled growth in the number of companies worldwide whose fortunes hinge on understanding business patterns and predicting trends, is creating an enormous opportunity. Contributing to this pent-up market demand is the rapidly increasing complexity and volume of data in most organizations. That data remains untouched simply because business users have been unable to analyze it with existing tools. In an information-driven economy, companies must turn that data into knowledge or they will fade away.”
API market Mashape raises $1.5M seed from mega investors
API market Mashape raises $1.5M seed from mega investors:
Mashape, an API marketplace catering to both application developers and providers, has raised a $1.5 million seed round from a who’s who of technology investors. New Enterprise Associates led the round, with Index Ventures, Charles River Ventures, Ignition Partners, Amazon.com CEO Jeff Bezos and Eric Schmidt’s Innovation Endeavors also chipping in. Mashape’s marketplace is in the same vein as Apigee and Mashery, although with more of a community vibe.
Mashape describes its service, currently in private beta, as “a place to easily discover, manage and hack bada** APIs.” For developers, that means the ability to find and tinker with public APIs that will help them bolster whatever application they happen to be working on. For API creators, that means a channel through which to get their APIs in front of developers, and possibly to utilize Mashape’s API-management tools.
API adoption is critical for application providers, because it means the application is gaining traction. The more developers integrating a service’s API into their own applications, the broader the original service’s footprint and the more traffic to the original service itself.
However, as Apigee and Mashery have taught us, managing API usage is also very important because too many API calls or insecure practices can put a service at risk. Both services provide a wide variety of tools for securing, monetizing and analyzing API usage. At this point, Mashape is touting a couple of management features — billing and request limits — as well as auto-generated client libraries for numerous programming languages.
Maybe Mashape will add more management in the future, but for now, it appears more focused on building a community. Already, it claims more than 180 APIs in its marketplace. Mashape’s tactic suggests that while it recognizes the business opportunity inherent in APIs, it thinks they might be more like relationships, putting people ahead of profits. What do you think?
Feature image courtesy of Flickr user NatalieMaynor.
Related research and analysis from GigaOM Pro:
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- Infrastructure Q2: Big data and PaaS gain more momentum
- The Case for Increased M&A in 2011: Actions and Outlooks
- The Structure 50: The Top 50 Cloud Innovators
Monday, September 27, 2010
rackspace
Rackspace has made the jump from being a pure-play hosting company to a cloud computing tour de force. And the San Antonio-based company shows no signs of slowing its cloud roll. In the second quarter of 2010, Rackspace added 8,510 customers into its cloud computing business, pushing its total number of cloud customers to 88,590 as of June 30, 2010, a massive increase from the 51,440 cloud customers it had a year prior. And Rackspace's cloud revenue rose to $23.2 million in the second quarter, up from $19.3 million in the first quarter.
Rackspace's Cloud Servers cloud computing play and Cloud Files cloud storage offering have been generating buzz, while its Cloud Sites development platform has attracted many developers. To accommodate its shift to the cloud, Rackspace launched a cloud-focused channel program earlier this year.
In July Rackspace also launched its OpenStack initiative, an open source cloud computing play.
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