Mar
31
2020
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Microsoft launches Edge Zones for Azure

Microsoft today announced the launch of Azure Edge Zones, which will allow Azure users to bring their applications to the company’s edge locations. The focus here is on enabling real-time low-latency 5G applications. The company is also launching a version of Edge Zones with carriers (starting with AT&T) in preview, which connects these zones directly to 5G networks in the carrier’s data center. And to round it all out, Azure is also getting Private Edge Zones for those who are deploying private 5G/LTE networks in combination with Azure Stack Edge.

In addition to partnering with carriers like AT&T, as well as Rogers, SK Telecom, Telstra and Vodafone, Microsoft is also launching new standalone Azure Edge Zones in more than 10 cities over the next year, starting with LA, Miami and New York later this summer.

“For the last few decades, carriers and operators have pioneered how we connect with each other, laying the foundation for telephony and cellular,” the company notes in today’s announcement. “With cloud and 5G, there are new possibilities by combining cloud services, like compute and AI with high bandwidth and ultra-low latency. Microsoft is partnering with them bring 5G to life in immersive applications built by organization and developers.”

This may all sound a bit familiar, and that’s because only a few weeks ago, Google launched Anthos for Telecom and its Global Mobile Edge Cloud, which at first glance offers a similar promise of bringing applications close to that cloud’s edge locations for 5G and telco usage. Microsoft argues that its offering is more comprehensive in terms of its partner ecosystem and geographic availability. But it’s clear that 5G is a trend all of the large cloud providers are trying to tap into. Microsoft’s own acquisition of 5G cloud specialist Affirmed Networks is yet another example of how it is looking to position itself in this market.

As far as the details of the various Edge Zone versions go, the focus of Edge Zones is mostly on IoT and AI workloads, while Microsoft notes that Edge Zones with Carriers is more about low-latency online gaming, remote meetings and events, as well as smart infrastructure. Private Edge Zones, which combine private carrier networks with Azure Stack Edge, is something only a small number of large enterprise companies would likely to look into, given the cost and complexity of rolling out a system like this.

 

Mar
26
2020
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Tech giants should let startups defer cloud payments

Google, Amazon and Microsoft are the landlords. Amidst the coronavirus economic crisis, startups need a break from paying rent. They’re in a cash crunch. Revenue has stopped flowing in, capital markets like venture debt are hesitant and startups and small-to-medium sized businesses are at risk of either having to lay off huge numbers of employees and/or shut down.

Meanwhile, the tech giants are cash rich. Their success this decade means they’re able to weather the storm for a few months. Their customers cannot.

Cloud infrastructure costs area amongst many startups’ top expense besides payroll. The option to pay these cloud bills later could save some from going out of business or axing huge parts of their staff. Both would hurt the tech industry, the economy and the individuals laid off. But most worryingly for the giants, it could destroy their customer base.

The mass layoffs have already begun. Soon we’re sure to start hearing about sizable companies shutting down, upended by COVID-19. But there’s still an opportunity to stop a larger bloodbath from ensuing.

That’s why I have a proposal: cloud relief.

The platform giants should let startups and small businesses defer their cloud infrastructure payments for three to six months until they can pay them back in installments. Amazon AWS, Google Cloud, Microsoft Azure, these companies’ additional infrastructure products, and other platform providers should let customers pause payment until the worst of the first wave of the COVID-19 economic disruption passes. Profitable SaaS providers like Salesforce could give customers an extension too.

There are plenty of altruistic reasons to do this. They have the resources to help businesses in need. We all need to support each other in these tough times. This could protect tons of families. Some of these startups are providing important services to the public and even discounting them, thereby ramping up their bills while decreasing revenue.

Then there are the PR reasons. After years of techlash and anti-trust scrutiny, here’s the chance for the giants to prove their size can be beneficial to the world. Recruiters could use it as a talking point. “We’re the company that helped save Silicon Valley.” There’s an explanation for them squirreling away so much cash: the rainy day has finally arrived.

But the capitalistic truth and the story they could sell to Wall Street is that it’s not good for our business if our customers go out of business. Look at what happened to infrastructure providers in the dot-com crash. When tons of startups vaporized, so did the profits for those selling them hosting and tools. Any government stimulus for businesses would be better spent by them paying employees than paying the cloud companies that aren’t in danger. Saving one future Netflix from shutting down could cover any short-term loss from helping 100 other businesses.

This isn’t a handout. These startups will still owe the money. They’d just be able to pay it a little later, spread out over their monthly bills for a year or so. Once mass shelter-in-place orders subside, businesses can operate at least a little closer to normal, investors can get less cautious and customers will have the cash they need to pay their dues. Plus interest, if necessary.

Meanwhile, they’ll be locked in and loyal customers for the foreseeable future. Cloud vendors could gate the deferment to only customers that have been with them for X amount of months or that have already spent Y amount on the platform. The vendors also could offer the deferment on the condition that customers add a year or more to their existing contracts. Founders will remember who gave them the benefit of the doubt.

cloud ice cream cone imagine

Consider it a marketing expense. Platforms often offer discounts or free trials to new customers. Now it’s existing customers that need a reprieve. Instead of airport ads, the giants could spend the money ensuring they’ll still have plenty of developers building atop them by the end of 2020.

Beyond deferred payment, platforms could just push the due date on all outstanding bills to three or six months from now. Alternatively, they could offer a deep discount such as 50% off for three months if they didn’t want to deal with accruing debt and then servicing it. Customers with multi-year contracts could offered the opportunity to downgrade or renegotiate their contracts without penalties. Any of these might require giving sales quota forgiveness to their account executives.

It would likely be far too complicated and risky to accept equity in lieu of cash, a cut of revenue going forward or to provide loans or credit lines to customers. The clearest and simplest solution is to let startups skip a few payments, then pay more every month later until they clear their debt. When asked for comment or about whether they’re considering payment deferment options, Microsoft declined, and Amazon and Google did not respond.

To be clear, administering payment deferment won’t be simple or free. There are sure to be holes that cloud economists can poke in this proposal, but my goal is to get the conversation started. It could require the giants to change their earnings guidance. Rewriting deals with significantly sized customers will take work on both ends, and there’s a chance of breach of contract disputes. Giants would face the threat of customers recklessly using cloud resources before shutting down or skipping town.

Most taxing would be determining and enforcing the criteria of who’s eligible. The vendors would need to lay out which customers are too big so they don’t accidentally give a cloud-intensive but healthy media company a deferment they don’t need. Businesses that get questionably excluded could make a stink in public. Executing on the plan will require staff when giants are stretched thin trying to handle logistics disruptions, misinformation and accelerating work-from-home usage.

Still, this is the moment when the fortunate need to lend a hand to the vulnerable. Not a hand out, but a hand up. Companies with billions in cash in their coffers could save those struggling to pay salaries. All the fundraisers and info centers and hackathons are great, but this is how the tech giants can live up to their lofty mission statements.

We all live in the cloud now. Don’t evict us. #CloudRelief

Thanks to Falon Fatemi, Corey Quinn, Ilya Fushman, Jason Kim, Ilya Sukhar and Michael Campbell for their ideas and feedback on this proposal.

Mar
26
2020
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Microsoft acquires 5G specialist Affirmed Networks

Microsoft today announced that it has acquired Affirmed Networks, a company that specializes in fully virtualized, cloud-native networking solutions for telecom operators.

With its focus on 5G and edge computing, Affirmed looks like the ideal acquisition target for a large cloud provider looking to get deeper into the telco business. According to Crunchbase, Affirmed raised a total of $155 million before this acquisition, and the company’s more than 100 enterprise customers include the likes of AT&T, Orange, Vodafone, Telus, Turkcell and STC.

“As we’ve seen with other technology transformations, we believe that software can play an important role in helping advance 5G and deliver new network solutions that offer step-change advancements in speed, cost and security,” writes Yousef Khalidi, Microsoft’s corporate vice president for Azure Networking. “There is a significant opportunity for both incumbents and new players across the industry to innovate, collaborate and create new markets, serving the networking and edge computing needs of our mutual customers.”

With its customer base, Affirmed gives Microsoft another entry point into the telecom industry. Previously, the telcos would often build their own data centers and stuff it with costly proprietary hardware (and the software to manage it). But thanks to today’s virtualization technologies, the large cloud platforms are now able to offer the same capabilities and reliability without any of the cost. And unsurprisingly, a new technology like 5G, with its promise of new and expanded markets, makes for a good moment to push forward with these new technologies.

Google recently made some moves in this direction with its Anthos for Telecom and Global Mobile Edge Cloud, too. Chances are we will see all of the large cloud providers continue to go after this market in the coming months.

In a somewhat odd move, only yesterday Affirmed announced a new CEO and president, Anand Krishnamurthy. It’s not often that we see these kinds of executive moves hours before a company announces its acquisition.

The announcement doesn’t feature a single hint at today’s news and includes all of the usual cliches we’ve come to expect from a press release that announces a new CEO. “We are thankful to Hassan for his vision and commitment in guiding the company through this extraordinary journey and positioning us for tremendous success in the future,” Krishnamurthy wrote at the time. “It is my honor to lead Affirmed as we continue to drive this incredible transformation in our industry.”

We asked Affirmed for some more background about this and will update this post if we hear more. Update: an Affirmed spokesperson told us that this was “part of a succession plan that had been determined previously.  So it was not related [to] any specific event.”

Mar
10
2020
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Hitachi Vantara acquires what’s left of Containership

Hitachi Vantara, the wholly owned subsidiary of Hitachi that focuses on building hardware and software to help companies manage their data, today announced that it has acquired the assets of Containership, one of the earlier players in the container ecosystem, which shut down its operations last October.

Containership, which launched as part of our 2015 Disrupt New York Startup Battlefield, started as a service that helped businesses move their containerized workloads between clouds, but as so many similar startups, it then moved on to focus solely on Kubernetes and helping enterprises manage their Kubernetes infrastructure. Before it called it quits, the company’s specialty was managing multi-cloud Kubernetes deployments. The company wasn’t able to monetize its Kubernetes efforts quickly enough, though, the company said at the time in a blog post that it has now removed from its website.

Containership enables customers to easily deploy and manage Kubernetes clusters and containerized applications in public cloud, private cloud, and on-premise environments,” writes Bobby Soni, the COO for digital infrastructure at Hitachi Vantara. “The software addresses critical cloud native application issues facing customers working with Kubernetes such as persistent storage support, centralized authentication, access control, audit logging, continuous deployment, workload portability, cost analysis, autoscaling, upgrades, and more.”

Hitachi Vantara tells me that it is not acquiring any of Containership’s customer contracts or employees and has no plans to keep the Containership brand. “Our primary focus is to develop new offerings based on the Containership IP. We do hope to engage with prior customers once our new offerings become commercially available,” a company spokesperson said.

The companies did not disclose the price of the acquisition. Pittsburgh-based Containership only raised about $2.6 million since it was founded in 2014, though, and things had become pretty quiet around the company in the last year or two before its early demise. Chances are then that the price wasn’t all that high. Investors include Birchmere Ventures, Draper Triangle and Innovation Works.

Hitachi Vantara says it will continue to work with the Kubernetes community. Containership was a member of the Cloud Native Computing Foundation. Hitachi never was, but after this acquisition, that may change.

Mar
09
2020
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Box is now letting all staff work from home to reduce coronavirus risk

Box has joined a number of tech companies supporting employees to work remotely from home in response  the outbreak of the novel coronavirus.

It’s applying the policy to all staff, regardless of location.

Late yesterday Box co-founder Aaron Levie tweeted a statement detailing the cloud computing company’s response to COVID-19, the name of the disease caused by the coronavirus — to, as he put it, “ensure the availability of our service and safety of our employees”.

In recent days Twitter has similarly encouraged all staff members to work from home. While companies including Amazon, Google, LinkedIn and Microsoft have also advised some staff to work remotely to reduce the risk of exposure to the virus.

In its response statement Box writes that it’s enacted its business continuity plans “to ensure core business functions and technology are operational in the event of any potential disruption”.

“We have long recognized the potential risks associated with service interruptions due to adverse events, such as an earthquake, power outage or a public health crisis like COVID-19, affecting our strategic, operational, stakeholder and customer obligations. This is why we have had a Business Continuity program in place to provide the policies and plans necessary for protecting Box’s operations and critical business functions,” the company writes.

In a section on “workforce resilience and business continuity” it notes that work from home practices are a normal part of its business operations but says it’s now extending the option to all its staff, regardless of the office or location they normally work out of — saying it’s doing so “out of an abundance of caution during COVID-19”.

Other measures the company says it’s taken to further reduce risk include suspending all international travel and limiting non-essential domestic travel; reducing large customer events and gatherings; and emphasizing health and hygiene across all office locations — “by maintaining sanitation supplies and encouraging an ‘if you are sick, stay home’ mindset”.

It also says it’s conducting all new hire orientation and candidate interviews virtually.

Box names a number of tools it says it routinely uses to support mobility and remote working, including its own service for secure content collaboration; Zoom’s video communication tool; the Slack messaging app; Okta for secure ID; plus additional unnamed “critical cloud tools” for ensuring “uninterrupted remote work for all employees”.

Clearly spying the opportunity to onboard new users, as more companies switch on remote working as a result of COVID-19 concerns, Box’s post also links to free training resources for its own cloud computing tools.

This report was updated with a correction to clarify that COVID-19 is the disease caused by the novel coronavirus; rather than another name for the virus

Mar
05
2020
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Google Cloud goes after the telco business with Anthos for Telecom and its Global Mobile Edge Cloud

Google Cloud today announced a new solution for its telecom customers: Anthos for Telecom. You can think of this as a specialized edition of Google’s container-based Anthos multi-cloud platform for both modernizing existing applications and building new ones on top of Kubernetes. The announcement, which was originally slated for MWC, doesn’t come as a major surprise, given Google Cloud’s focus on offering very targeted services to its enterprise customers in a number of different verticals.

Given the rise of edge computing and, in the telco business, 5G, Anthos for Telecom makes for an interesting play in what could potentially be a very lucrative market for Google. This is also the market where the open-source OpenStack project has remained the strongest.

What’s maybe even more important here is that Google is also launching a new service called the Global Mobile Edge Cloud (GMEC). With this, telco companies will be able to run their applications not just in Google’s 20+ data center regions, but also in Google’s more than 130 edge locations around the world.

“We’re basically giving you compute power on our edge, where previously it was only for Google use, through the Anthos platform,” explained Eyal Manor, the VP of Engineering for Anthos. “The edge is very powerful and I think we will now see substantially more innovation happening for applications that are latency-sensitive. We’ve been investing in edge compute and edge networking for a long time in Google over the years for the internal services. And we think it’s a fairly unique capability now to open it up for third-party customers.”

For now, Google is only making this available to its teleco partners, with AT&T being the launch customers, but over time, Manor said, it’ll likely open its edge cloud to other verticals, as well. Google also expects to be able to announce other partners in the near future.

As for Anthos for Telecom, Manor notes that this is very much what its customers are asking for, especially now that so many of their new applications are containerized.

“[Anthos] brings the best of cloud-as-a-service to our customers, wherever they are, in multiple environments and provide the lock-in free environment with the latest cloud tools,” explained Manor. “The goal is really to empower developers and operators to move faster in a consistent way, so regardless of where you are, you don’t have to train your technical staff. It works on-premise, it works on GCP and on other clouds. And that’s what we hear from customers — customers really like choice.”

In the telecom industry, those customers also want to get higher up the stack and get consistency between their data centers and the edge — and all of that, of course, is meant to bring down the cost of running these networks and services.

“We don’t want to manage the [technology] we previously invested in for many years because the upgrades were terribly expensive and slow for that. I hear that consistently. And please Google, make this seem like a service in the cloud for us,” Manor said.

For developers, Anthos also promises to provide the same development experience, no matter where the application is deployed — and Google now has an established network of partners that provides both solutions to developers as well as operators around Anthos. To this effect, Google is also launching new partnerships with the Amdocs customer experience platform and Netcracker today.

“We’re excited to unveil a new strategy today to help telecommunications companies innovate and accelerate their digital transformation through Google Cloud,” said Thomas Kurian, CEO of Google Cloud, in today’s announcement. “By collaborating closely with leading telecoms, partners and customers, we can transform the industry together and create better overall experiences for our users globally.”

Mar
02
2020
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Google cancels Cloud Next because of coronavirus, goes online-only

Google today announced that it is canceling the physical part of Cloud Next, its cloud-focused event and its largest annual conference by far with around 30,000 attendees, over concerns around the current spread of COVID-19.

Given all of the recent conference cancellations, this announcement doesn’t come as a huge surprise, especially after Facebook canceled its F8 developer conference only a few days ago.

Cloud Next was scheduled to run from April 6 to 8. Instead of the physical event, Google will now host an online event under the “Google Cloud Next ’20: Digital Connect” moniker. So there will still be keynotes and breakout sessions, as well as the ability to connect with experts.

“Innovation is in Google’s DNA and we are leveraging this strength to bring you an immersive and inspiring event this year without the risk of travel,” the company notes in today’s announcement.

The virtual event will be free and in an email to attendees, Google says that it will automatically refund all tickets to this year’s conference. It will also automatically cancel all hotel reservations made through its conference reservation system.

It now remains to be seen what happens to Google’s other major conference, I/O, which is slated to run from May 12 to 14 in Mountain View. The same holds true for Microsoft’s rival Build conference in Seattle, which is scheduled to start on May 19. These are the two premier annual news events for both companies, but given the current situation, nobody would be surprised if they get canceled, too.

Feb
19
2020
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Thomas Kurian on his first year as Google Cloud CEO

“Yes.”

That was Google Cloud CEO Thomas Kurian’s simple answer when I asked if he thought he’d achieved what he set out to do in his first year.

A year ago, he took the helm of Google’s cloud operations — which includes G Suite — and set about giving the organization a sharpened focus by expanding on a strategy his predecessor Diane Greene first set during her tenure.

It’s no secret that Kurian, with his background at Oracle, immediately put the entire Google Cloud operation on a course to focus on enterprise customers, with an emphasis on a number of key verticals.

So it’s no surprise, then, that the first highlight Kurian cited is that Google Cloud expanded its feature lineup with important capabilities that were previously missing. “When we look at what we’ve done this last year, first is maturing our products,” he said. “We’ve opened up many markets for our products because we’ve matured the core capabilities in the product. We’ve added things like compliance requirements. We’ve added support for many enterprise things like SAP and VMware and Oracle and a number of enterprise solutions.” Thanks to this, he stressed, analyst firms like Gartner and Forrester now rank Google Cloud “neck-and-neck with the other two players that everybody compares us to.”

If Google Cloud’s previous record made anything clear, though, it’s that technical know-how and great features aren’t enough. One of the first actions Kurian took was to expand the company’s sales team to resemble an organization that looked a bit more like that of a traditional enterprise company. “We were able to specialize our sales teams by industry — added talent into the sales organization and scaled up the sales force very, very significantly — and I think you’re starting to see those results. Not only did we increase the number of people, but our productivity improved as well as the sales organization, so all of that was good.”

He also cited Google’s partner business as a reason for its overall growth. Partner influence revenue increased by about 200% in 2019, and its partners brought in 13 times more new customers in 2019 when compared to the previous year.

Feb
19
2020
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Google Cloud opens its Seoul region

Google Cloud today announced that its new Seoul region, its first in Korea, is now open for business. The region, which it first talked about last April, will feature three availability zones and support for virtually all of Google Cloud’s standard service, ranging from Compute Engine to BigQuery, Bigtable and Cloud Spanner.

With this, Google Cloud now has a presence in 16 countries and offers 21 regions with a total of 64 zones. The Seoul region (with the memorable name of asia-northeast3) will complement Google’s other regions in the area, including two in Japan, as well as regions in Hong Kong and Taiwan, but the obvious focus here is on serving Korean companies with low-latency access to its cloud services.

“As South Korea’s largest gaming company, we’re partnering with Google Cloud for game development, infrastructure management, and to infuse our operations with business intelligence,” said Chang-Whan Sul, the CTO of Netmarble. “Google Cloud’s region in Seoul reinforces its commitment to the region and we welcome the opportunities this initiative offers our business.”

Over the course of this year, Google Cloud also plans to open more zones and regions in Salt Lake City, Las Vegas and Jakarta, Indonesia.

Feb
19
2020
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Google Cloud acquires mainframe migration service Cornerstone

Google today announced that it has acquired Cornerstone, a Dutch company that specializes in helping enterprises migrate their legacy workloads from mainframes to public clouds. Cornerstone, which provides very hands-on migration assistance, will form the basis of Google Cloud’s mainframe-to-GCP solutions.

This move is very much in line with Google Cloud’s overall enterprise strategy, which focuses on helping existing enterprises move their legacy workloads into the cloud (and start new projects as cloud-native solutions from the get-go).

“This is one more example of how Google Cloud is helping enterprise customers modernize their infrastructure and applications as they transition to the cloud,” said John Jester, VP of Customer Experience at Google Cloud. “We’ve been making great strides to better serve enterprise customers, including introducing Premium Support, better aligning our Customer Success organization, simplifying our commercial contracting process to make it easier to do business with Google Cloud, and expanding our partner relationships.”

A lot of businesses still rely on their mainframes to power mission-critical workloads. Moving them to the cloud is often a very complex undertaking, which is where Cornerstone and similar vendors come in. It doesn’t help that a lot of these mainframe applications were written in Cobol, PL/1 or assembly. Cornerstone’s technology can automatically break down these processes into cloud-native services that are then managed within a containerized environment. It can also migrate databases as needed.

It’s worth noting that Google Cloud also recently introduced support for IBM Power Systems in its cloud. This, too, was a move to help enterprises move their legacy systems into the cloud. With Cornerstone, Google Cloud adds yet another layer on top of this by providing even more hands-on migration assistance for users who want to slowly modernize their overall stack without having to re-architect all of their legacy applications.

 

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