Cloud Analytics Growth Rate Will Continue

It’s no secret that cloud computing and data analytics are both rapidly expanding areas within information technology. Put them together, and you get a winning combination that’s expected to grow by more than 26 percent annually over the next five years.

That’s according to market-tracking firm Research and Markets, which recently released a new report on the global cloud analytics market.

Increased adoption of data analytics is one of the major drivers in this market, Research and Markets found. More specifically, many organizations are adopting data analytics in order to better understand consumption patterns, customer acquisition and various other factors believed to increase revenue, cut costs and boost customer loyalty.

HP, IBM, Microsoft, Oracle and SAP are among the dominant vendors in this arena, the company said in a press release.

Big Data is one of the particularly significant trends in the market, Research and Markets said.

“Cloud analytics deals with the management of unorganized data, which helps organizations access important data and make timely decisions regarding their business,” the company said.

The rates of growth in this arena might actually be much higher than those suggested by the report, said analyst Ray Wang, founder of Constellation Research.

In fact, Constellation Research predicts an annual growth rate of closer to 46 percent until 2020, he said.

Early-arriving cloud companies like Salesforce “had great reporting, but they didn’t necessarily have great analytics,” Wang said.

It’s for that reason that challengers such as Actuate have popped up, he noted.

“More and more, because of the size and complication, we’re seeing analytics move to the cloud,” Wang said.

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Are We Moving Too Fast Into Cloud Computing?

Businesses need to take a hybrid approach when it comes to the cloud, Dell has said.

The firm’s cloud strategy leader, Gordon Davey, told V3.co.uk in an interview that cloud computing is “overhyped” and moving an entire IT infrastructure into the cloud would be an unrealistic goal.

Davey also believes that cloud vendors have enticed companies to make major shifts to the cloud without considering a model that works for their business.

“I think it’s definitely a case of cloud as a buzzword is overhyped. The idea of cloud for the sake of cloud doesn’t really stand out,” he said.

“The problem comes from customers that have seen the buzzword and want to get the benefits and are just jumping on the bandwagon because it is an industry hype thing, rather than actually evaluating the benefits that a true cloud can bring, and applying that to their business requirements.”

Davey outlined the need to take a more considered approach, adopting an IT strategy that mixes on-premise infrastructure with cloud components to harness the technology without escalating IT costs and complexity.

“The future is going to be hybrid. It’s horses for courses – putting the right workload on the right platform,” he said.

“It’s that balanced approach that I think we’re going to see much more often, rather than trying to put everything into the cloud and potentially failing.”

Davey’s position is unsurprising given Dell’s approach of acting as a ‘middleman’ between cloud service providers and end users, providing hardware, software, services and consultancy to enable businesses to use cloud computing in a way that works for them.

“We see our role as enabling the cloud industry, being that underlying technology,” he said, going on to detail Dell’s five pillar approach to acting as a cloud middleman rather than developing its own end-to-end cloud offering.

The strategy involves consulting on a customer’s cloud needs, helping provide cloud infrastructure, brokering deals between vendors and users, providing security, and managing how multiple cloud services are deployed in a single business.

Davey claimed that Dell’s strategy will help companies take a more tailored approach to cloud adoption, adding: “A properly deployed cloud for the correct workloads in hugely beneficial.”

Dell is not alone in promoting a hybrid approach to cloud adoption. Microsoft is adding hybrid cloud capability to the next version of Windows Server.

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IBM And Tencent Team Up

Tencent Holdings Ltd announced that it would be teaming up with International Business Machines Corp (IBM) on a new cloud software business for corporate customers, a marked departure for one of the dominant forces in China’s consumer Internet industry.

Best known for its popular WeChat messaging app and its online games rather than business software, Tencent said its cloud unit would now target small and medium enterprises in the healthcare and “smart city” industries.

Many technology firms are jockeying for a slice of China’s enterprise software market, which promises to grow sharply in coming years as businesses modernize their IT operations and move data onto the cloud.

Tencent’s alliance with IBM, which has deep experience providing computing and consulting services to corporate clients, provides the Shenzhen company a competitive answer to its Chinese rival Alibaba Group Holding Ltd’s nascent cloud efforts.

An e-commerce giant, Alibaba has been slowly building its cloud unit, which recorded just $38 million in revenue in the three months ended June 30.

Tencent said it would tap IBM for its “industry expertise and enterprise reach” but did not disclose financial terms of the deal.

For IBM, the Tencent deal is just the latest in a recent spate of new software partnerships in China, where its hardware sales have been sliding.

IBM announced a deal earlier this year to install its cutting-edge DB2 database software on Chinese rival Inspur International Ltd’s machines. Big Blue also agreed to license its database and big data technology to Chinese software vendor Yonyou Software Co Ltd.

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Will ARM’s Mbed OS Help The IoT?

ARM has announced a software tool to make Internet of Things (IoT) deployment faster and easier and thus speed up the creation of IoT devices.

Called the Mbed IoT Device Platform, the software is primarily an operating system (OS) built around open standards that claims to “bring Internet protocols, security and standards-based manageability into one integrated tool” in order to save money and energy in making IoT devices.

The Mbed IoT Device Platform is made up chiefly of the Mbed OS, a free operating system for Cortex-M processor based devices that “consolidates the building blocks of the IoT in one integrated set of software components” and contains security, communication and device management features to enable the development of lower power IoT devices.

The OS will be available to Mbed partners in the fourth quarter for early development, with the first production devices due in 2015 to allow companies to focus on innovation, reducing development costs and time to market.

It will also support standards such as Bluetooth Smart, 2G, 3G, LTE and CDMA cellular technologies, Thread, WiFi, and 802.15.4/6LoWPAN along with TLS/DTLS, CoAP, HTTP, MQTT and Lightweight M2M, ARM said.

The Mbed OS will also feature the Mbed Device Server, a licensable software product that provides the required server-side technologies to connect and manage devices in a more secure way. It also provides a bridge between the protocols designed for use on IoT devices and the APIs that are used by web developers.

“This simplifies the integration of IoT devices that provide ‘little data’ into cloud frameworks that deploy big data analytics on the aggregated information,” said ARM. “Built around open standards, the product scales to handle the connections and management of millions of devices.”

Mbed Device Server is available now, with an aim to improve efficiency, security and manageability for devices using a “standards-based and IoT approach”, ARM said.

The software also comes with its own community, Mbed.org, which is the focus point for a more than 70,000 developers around the platform. The website provides a database of hardware development kits, a repository for reusable software components, reference applications, documentation and web-based development tools. It is already up and running, ARM said.

“Deploying IoT-enabled products and services requires a diverse set of technologies and skills to be coordinated across an organization,” said ARM CEO Simon Segars. “ARM Mbed will make this easier by offering the necessary building blocks to enable our expanding set of ecosystem partners to focus on the problems they need to solve to differentiate their products, instead of common infrastructure technologies. This will accelerate the growth and adoption of the IoT in all sectors of the global economy.”

ARM is launching Mbed with a number of partners, including Atmel, CSR, Ericsson, Farnell, Freescale, IBM, KDDI, Marvell, Megachips, Multitech, Nordic Semiconductor, NXP, Renesas, Seecontrol, Semtech, Silicon Labs, Stream Technologies, ST, Telenor Connexion, Telefonica, Thundersoft, u-blox, wot.io and Zebra.

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Is Oracle’s Linux 7 Unbreakable?

Oracle has announced the release of its Linux distribution Oracle Linux 7.

Oracle Linux 7 is the latest release of the company’s version of its enterprise grade Linux flavour that is a fork of Red Hat Enterprise Linux.

This latest release adds a range of features including XFS, Btrfs, Linux Containers (LXC), Dtrace, Ksplice, Xen enhancements and the Oracle’s Unbreakable Enterprise Kernel Release 3.

“Oracle Linux continues to provide the most flexible options for customers and partners, allowing them to easily innovate, collaborate, and create enterprise-grade solutions,” said Oracle SVP of Linux and Virtualization Engineering Wim Coekaerts.

“With Oracle Linux 7, users have more freedom to choose the technologies and solutions that best meet their business objectives. Oracle Linux allows users to benefit from an open approach for emerging technologies, like Openstack, and allows them to meet the performance and reliability requirements of the modern data center.”

Oracle’s outspoken CEO Larry Ellison recently claimed that its servers were “untouchable”, two weeks after it released patches for 36 vulnerabilities in its Java platform.

The company recently won a court case against Google after successfully arguing that the APIs used in Google’s Android mobile operating system infringed Oracle copyrights.

The Oracle Linux 7 operating system is freely downloadable and distributed with updates and security fixes subsequently available from Oracle Yum servers. A paid option is also available for anyone wishing to buy Oracle support.

Oracle Linux 7 has a 10-year production lifecycle, or lifetime support for subscribers, with additional upgrade support available for users of the Unbreakable Enterprise Kernel.

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Apple-IBM Alliance Downplayed

IBM Corp’s recent move to team up with Apple Inc to sell iPhones and iPads loaded with corporate applications has excited investors in both companies, but two rivals say they are unfazed for now.

Top executives at Dell and BlackBerry Ltd scoffed at the threat posed by the alliance, arguing the tie-up is unlikely to derail the efforts of their own companies to re-invent themselves.

“I do not think that we take the Apple-IBM tie-up terribly seriously. I think it just made a good press release,” John Swainson, who heads Dell’s global software business, said in an interview with Reuters in Toronto last week.

PC maker Dell and smartphone maker BlackBerry are in the midst of reshaping their companies around software and services, as the needs of their big corporate clients morph.

Swainson, who spent over two decades in senior roles at IBM, said, “I have some trouble understanding how IBM reps are going to really help Apple very much in terms of introducing devices into their accounts. I mean candidly, they weren’t very good at doing it when it was IBM-logoed products, so I do not get how introducing Apple-logoed stuff is going to be much better.”

While conceding that Apple products hold more allure, Swainson said they lack the depth of security features that many large business clients like banks covet.

IBM and Apple could not immediately be reached for comment.

BlackBerry Chief Executive John Chen similarly downplayed the threat of the alliance in an interview with the Financial Times, likening the tie-up to when “two elephants start dancing.”

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Is China Hurting U.S. Vendors?

Shipments of servers from Chinese vendors grew at a rapid pace while the top server vendors in the U.S. declined during the first quarter of this year.

Worldwide server shipments were 2.3 million units during the first quarter, growing by just 1.4 percent compared to the same quarter last year, according to Gartner.

Growth was driven by Chinese server vendors Huawei and Inspur Electronics, which were ranked fourth and fifth, respectively, behind the declining Hewlett-Packard, Dell and IBM.

Huawei has been in the top five for server shipments for more than a year, but Inspur Electronics is a new entrant. Inspur builds blade servers, rack servers and supercomputers, and is best known for being involved in the construction of China’s Tianhe-2, which is currently the world’s fastest supercomputer, according to Top500.org.

Chinese servers partly benefitted from the 18 percent shipment growth in the Asia-Pacific region, while shipments in other regions declined, Gartner said in a statement.

Server buying trends have changed in recent years. Companies like Facebook, Google and Amazon, which buy servers by the thousands, are bypassing established server makers and purchasing hardware directly from manufacturers like Quanta and Inventec. That trend in part led to the establishment of the Open Compute Project, a Facebook-led organization that provides server reference designs so companies can design data-center hardware in-house.

Similarly, Chinese cloud providers are building mega data centers and buying servers from local vendors instead of going to the big name brands, said Patrick Moorhead, analyst with Moor Insights and Strategy.

The trend of buying locally is partly due to the security tension between the U.S. and China, but servers from Chinese companies are also cheaper, Moorhead said.

The enterprise infrastructure is also being built out in China, resulting in a big demand for servers. There is also a growing demand for servers from little-known vendors based in Asia — also known as “white box” vendors — in other regions, Moorhead said.

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Dell Goes Plastic

Dell is manufacturing a line of PCs using plastics obtained by expanding its recycling program.

The company has expanded the hardware take-back program to more places worldwide, aiming to collect and reuse more extracted plastic and metals in PCs, monitors, hardware panels and other products.

Dell’s OptiPlex 3030 all-in-one, which will ship next month, will be the first product of that effort. Starting next year, more laptops, desktops and monitor back-panels will be made using recycled plastic, said Scott O’Connell, director of environmental affairs at Dell. The products will be certified as sustainable by UL (Underwriters Laboratories).

Dell will save money by reusing plastic, but O’Connell did not say whether the savings will be passed on to customers through lower prices. But it will be easier for more people to recycle electronics and Dell will also provide a PC mail-back option, O’Connell said.

Dell’s plan to establish a recycling chain internally could reduce the need for “virgin” plastics, which can be environmentally damaging to make, said Gary Cook, senior IT analyst at Greenpeace International.

Incineration of plastic from disposed computers can be toxic and reusing plastics in new computers or other parts reduces “dirty energy,” Cook said.

“We need to see plastics last longer,” Cook said.

Companies like Apple have helped raise expectations of sustainability in computers and others are following suit, Cook said. PC makers are using more metals in computer chassis and handset makers are using more nonpetroleum plastics.

Dell was criticized last year by Greenpeace for veering away from its carbon-neutral goals and sustainability advocacy. The company ranked 14th among most green IT companies, behind Microsoft, IBM, Hewlett-Packard, Wipro, Fujitsu and Google, among others.

Dell curbed its sustainability strategy when it was trying to go private last year, but has now reinvigorated that effort.

“They are trying to show some initiative,” Cook said.

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Is IBM Going After HP?

IBM has announced a unified branding for its commerce cloud based enterprise products and services with a presentation at the Smarter Commerce Global Summit in Tampa, Florida.

Hot on the heels of HP, which unified its cloud offerings under the Helion brand last week, IBM Experienceone is designed to allow companies to improve engagement with their customers by leveraging big data through the cloud.

Deployment comes from a unified offer of consulting services, software and infrastructure from IBM subsidary Softlayer, which can be used to gather data, mine analytics and improve customer commerce via a mixture of traditional and cloud services.

IBM has already committed 1,000 new employees for its IBM Interactive Experience who will staff 10 “IBM Interactive Experience Labs” that are being set up to help customers understand the rules of engagement and hopefully increase their level of customer engagement.

IBM GM of Industry Cloud Solution Craig Hayman said, “IBM Experienceone provides a secure and simplified portfolio – including innovation from more than 1,200 partners – to help clients design and deliver more valuable customer engagements. With cloud, on premise and hybrid options, IBM Experienceone quickly scales to engage every customer in the moment while protecting their privacy.”

The IBM Experienceone brand is a coming together of many acquisitions that IBM has made in the field over recent years, including Sterling Commerce, Tealeaf, Coremetrics, Unica, Demandtec, Xtify and Silverpop. The only obvious omission from the top to tail offer is a specific CRM database, however IBM Experienceone is compatible with most of the leading solutions, including those of its arch rivals. This leads to the question, could a CRM be next on the company’s shopping list?

As well as on desktop and server equipment, Experienceone analytics will also be available through apps for iOS and Android.

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Will IBM Realize Growth In 2015?

International Business Machines Corp said it is projecting growth in its hardware sector next year as the company invests in research and development and abandons low-performing ventures.

The comments come less than one month after the world’s largest technology service company reported its lowest quarterly revenue in five years, weighed by sluggish global demand for its hardware, which plunged 23 percent in the first quarter of 2014.

The company added that growth in Latin America, the Middle East and Africa remain strong, and blamed falling revenue in China on government reforms affecting state-owned clients, and on the country’s hardware-heavy portfolio.

“We move on and we spread ourselves out, more industries, more clients, cloud, data, et cetera, around there,” said IBM Chief Executive Ginni Rometty at an investor briefing on Wednesday.

Chief Financial Officer Martin Schroeter said to stabilize the hardware sector IBM would continue to “refresh” hardware and further invest in research and development.

“Quite frankly, we are seeing very good growth out of software, good growth out of services, but challenges in hardware,” said Schroeter. “We will stabilize that hardware base and I am comfortable we will make that happen in 2014,” he said.

He reiterated the company’s EPS target for 2015 of at least $20. He expects a shift to higher-value business to bring in $3.25 and share repurchases to add $2 in earnings per share by 2015.

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