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How Alphabet Views the Cloud Computing Price Wars – Market Realist

Alphabet after 1Q17 Earnings: Verily, Waymo, and Smart Speakers PART 3 OF 17

Alphabets (GOOGL) Google seems to have changed its approach to its competition in thecloud computing market. The company says it doesnt intend to compete with Amazon (AMZN), Microsoft (MSFT), or Oracle (ORCL) in the cloud computing price wars to attract customers, according to a CNBC report.

Instead of engaging in price competition, Google wants to compete on value. For example, the company wants to pitch to customers that its Google Cloud Platform is the best option for data analytics and artificial intelligence services.

If Alphabet isnt going to try to gain an edge against the competition by pricing its cloud services competitively, then that would be a stark reversal from what the company did last year. In 2016, Amazon, Microsoft, and Google cut prices of some of their cloud services in a bid to attract new customers or in the case of the large providers, to defend their market share

AWS is the worlds largest cloud computing platform, controlling an ~31.0% share of the global market, according to Synergy Research Group. Microsoft holds a distant second place with ~11.0% of the market share. IBM (IBM) and Google appear to be underdogs with market shares of ~8.0% and ~5.0%, respectively.

Although Google is currently subdued by Amazon in terms of the cloud computing market share, the company believes its Google Cloud Platform could overtake AWS as the largest cloud provider by 2022. Googles hopes of becoming the cloud computing king in five years hinge on a research finding by Deutsche Bank showing that only 5.0% of cloud-eligible workloads have migrated to the cloud.

Revenues in Alphabets segment that reports cloud sales grew 49% to ~$3.1 billion in 1Q17, which compares with AWS revenues of $3.6 billion during the same period.

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Sundar Pichai Sees Google’s Future in the Smartest Cloud – WIRED

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How telecom is shifting its strategy to support cloud computing … – SiliconANGLE (blog)

Cloud computing has fundamentally expanded the realm ofpossibilities organizationscan accomplish with technology.While a lot of focus has been placed on the cloud technology and dataarchitecture advancements, the underlying telecommunications infrastructure is also seeing a shift in strategies to support the latest trends in cloud computing.

Cisco Systems, Inc., known for its hardware infrastructure deployments, is helping drive this shift. Ian Wells(pictured, left), distinguished engineer, cloud and platform services at Cisco Systems Inc., and Jerome Tollet(pictured, right), distinguished engineer, Chief Technology and Architecture Office, at Cisco Systems, are twoof the companys team membersspearheading this initiative.

Wells and Tollet spoke with host Stu Miniman (@stu) and guest host John Troyer (@jtroyer), of theCUBE, SiliconANGLE Medias mobile live streaming studio, during OpenStack Summit in Boston, Massachusetts. They discussed theirtechnicalperspectives on virtualization and cloud computing.(*Disclosure below.)

Of all the advances in telecommunications infrastructure, the most important technology for advancing cloud computing is Network Function Virtualization, according to Tollet. NFV is becoming a first-class citizen for this community. At the beginning, people were kind of ignoring NFV, it was all about cloud. Now its becoming quite the opposite, he said.

NFV is the term used to describe the virtualization of functions that historically have been physical hardware used for things like intrusion detection and routing.As the adoption rate for NVF rises, so does the demand for more features, which can create bottle necks in development.

On the networking side, its always, Id like more functionality. Youll hear people talk about service chaining. MPLS [Multiprotocol Label Switching] comes up quite regularly, which is really integration with the rest of the service provider network, Wells said. We have a ways to go to really address the kind of general purpose model that would suit everyone.

Tollet also brought up a very interesting point about the redundancy and overheadassociatedwith a completely virtualized system.

Think in terms of two containers sitting on the same virtual compute node. Why do you need to create a packet? Why do you need to do crypto? Why do you need to do virtual LAN when the two applications are sitting on the same compute node? Tollet said.We have imported into the virtual world all of the concepts we have used in the physical world now I think we can do something a bit more efficient .

Watch the complete video interview below, and be sure to check out more of SiliconANGLEs and theCUBEs independent editorial coverage ofOpenStack Summit 2017 Boston.(* Disclosure: Cisco Systems Inc. sponsored this OpenStack Summit segment on SiliconANGLE Medias theCUBE. Neither Cisco Systemsnor other sponsors have editorial control over content on theCUBE or SiliconANGLE.)

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How telecom is shifting its strategy to support cloud computing ... - SiliconANGLE (blog)

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Rambus Brings Ease of Use to IoT Security – DesignNews

Days after a massive cyberattack crippled computer hardware around the world, Rambus Inc. is rolling out a service designed to bring a simple but powerful form of security to Internet of Things (IoT) applications.

Known as IoT Device Management, the service is said to provide a secure channel between IoT devices and their cloud servers, and do so in a way that requires little or no security expertise on the part of the equipment designer. The company is targeting it at all types of IoT applications, from smart appliances to factory floor machinery. Were providing end-to-end secure connectivity, and its all pre-integrated, Asaf Ashkenazi, senior director of product marketing for Rambus, told Design News. You dont need to have security experts not in the cloud or at the client.

The IoT Device Management system is said to provide a secure channel between IoT devices and their cloud servers, and do so in a way that requires little or no security expertise on the part of the equipment designer. (Source: Rambus, Inc.)

The solution is made up of software modules that are pre-integrated into the firmware of chipsets made by silicon vendors who manufacture microprocessors, microcontrollers and wireless devices. The technology is also pre-integrated into the platforms of cloud service providers. Rambus said it is working with Qualcomm Technologies, Inc. , which makes wireless devices, but it has not yet named any other silicon vendors, or cloud service providers, who will incorporate its IoT Device Management system.

The companys announcement comes at a time when cybersecurity is making headlines around the world. Last week, attackers spread malware to businesses in at least 74 countries, effectively hijacking their computer systems. Victims included Britains National Health Service, Nissan Motor Co., Renault SA, and FedEx Corp., along with hundreds of banks and gas stations.

Rambus aims to head off such attacks with a form of security that locks up all the IoT systems Internet communication. Once a Rambus-supported device is powered up and connected to the Internet, it is automatically identified and authenticated by the IoT Device Management system. The device is then securely provisioned over the air, creating a secure communication channel. Data encryption and decryption, mutual authentication and key management is handled automatically by the software, the company said in a statement.

The service could potentially plug a gaping hole in IoT applications, the majority of which are woefully unsecured. A 2014 study by Hewlett-Packard revealed that 70% of IoT devices had security holes, with each having about 25 vulnerabilities, on average. Problems included insufficient authorization, lack of encryption, insecure web interfaces and inadequate software protection. In a particularly well-known case at Target Corp., thieves made off with 40 million credit card numbers after entering the companys network through an Internet-connected air conditioning system.

With many of these devices, anyone can connect to them, Ashkenazi said. They have no authentication, no encryption. You can connect to them from anywhere in the world and manipulate them. Its really scary.

Ashkenazi said IoT systems are particularly vulnerable, largely because they are at once

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Rambus Brings Ease of Use to IoT Security - DesignNews

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SolarWinds Closes Acquisition of Scout Server Monitoring – Talkin’ Cloud

IT management software provider SolarWinds announced on Wednesday that it has completed the acquisition of Scout Server Monitoring, which will bring deep server monitoring capabilities for DevOps professionals. The terms of the deal were not disclosed.

Pingdom Server Monitor, formerly Scout Server Monitoring, will join Pingdom website uptime and performance monitoring products, as well as Librato, Papertrail, and TraceView in its SaaS portfolio for monitoring cloud-native applications, servers and other infrastructure.

[Download Talkin Clouds free Essential Guide to Application Performance Management and Monitoring Software]

DevOps and the technologies and practices that have come with it have ushered in new goals and requirements for monitoring. With Pingdom Server Monitor, customers are able to track custom metrics and create alerts, and integrate with more than 90 plugins including DevOps tools like Chef and Puppet.

The deal will see Scout co-founder and CTO Andre Lewis join SolarWinds. Back in 2015, Lewis said in an interview with The WHIR that its focus on user and developer experience helped it gain loyal customers.

[Scout] started as a labor of love. We were doing consulting for Ruby on Rails development at the time and we built Scout as an internal tool to help keep tabs on some of the software that we were building for customers. We ended up productizing it and as a result I think Scout server monitoring is unusually finely tuned to the needs of developers because it actually grew out of our own needs at the time, Lewis told The WHIR at AWS re:Invent 2015.

Were very excited to add Pingdom Server Monitor, formerly Scout Server Monitoring, to our portfolio of products, Christoph Pfister, executive vice president, products, SolarWinds said in a statement. With it, developers and DevOps practitioners have access to an affordable, SaaS-based server monitoring solution. We look forward to investing in it and we welcome Andre Lewis to the SolarWinds team to help in those efforts.

The era of cloud and digitalization is driving exponential application growth and increased complexity, Pfister said. Its clear that cloud-native developers and DevOps teams need faster troubleshooting that enables them to more easily solve problems and improve performance across the full stack, including servers. The goal of our SaaS portfolio, and the market-leading products within it, is to provide just that, and to do so at an affordable price.

Last year, SolarWinds acquired LOGICnow to form its SolarWinds MSP division.

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Scalable Cloud Hosting, VPS Hosting | Lunarpages

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Cloud hosting firm turns to Agiloft for customer support automation – TechTarget

Channel partners rely on technology to run their businesses, but when the products they use aren't quite up to the task the results can prove unsettling, to say the least.

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ENKI, a managed cloud services provider based in Denver, can attest to that. The product the company had been using for customer support automation wasn't able to ensure clients would quickly get to a support person who could respond to their issues. The software had a one-hour scheduler for handling events, while ENKI's policy was to escalate within minutes.

The services provider tried to get around the hard-coded limitations of the software, running two hourly schedules on alternating half-hour starting points, said Eric Novikoff, COO at ENKI. "But it still didn't meet our 10-minute maximum escalation promise to our clients."

As a consequence, ENKI lost a couple of customers who encountered more than one missed escalation. That's when the company sought a new platform for customer support automation and began working with Agiloft, a company based in Redwood City, Calif., that offers business software applications, including customer support.

ENKI was able to modify Agiloft's customer support offering to meet its escalation requirements. The customization effort involved adding fields and making changes to "enable handoffs that matched our company's culture of responsibility," Novikoff said.

We are investigating whether the module is mature enough to be used as a service separate from our managed cloud hosting services. Eric NovikoffCOO, ENKI

For example, ENKI built upon Agiloft's core functionality, adding an offer/handoff/acceptance module that facilitates the task of reassigning a client from one support person to another.

The module, Novikoff explained, "automates the process and couples it with staff actively offering to take responsibility for an issue and accepting that responsibility. This is very different from the standard paradigm where the manager or system arbitrarily assigns responsibility to tickets from above."

He noted, however, that the base features "provided an overwhelmingly complete starting point for our customization."

The software modification took about three weeks of full-time work from one person, along with part-time contributions from a couple of other employees, to place the customer support automation system into production. ENKI clients and employees noticed the benefits of the system's customizability and soon upgrade requests to improve the customer portal and support functionality began to come in.

Novikoff said the requests for additional features required a few two-to-three-week upgrade cycles. After that, ENKI was able to settle into a yearly maintenance cycle.

This ability to modify applications is particularly appealing to channel partners, and one of the reasons Agiloft focuses on that industry segment, said Colin Earl, CEO and founder at Agiloft. He said partners can radically change the way an Agiloft software module works or build an entirely new module. The Agiloft platform lets customers automate business processes without custom coding, making software builds faster and less expensive, according to the company.

"Previously it took an investment in excess of $1 million to build a secure, scalable, enterprise software system to address a particular area," Earl said. "Agiloft reduces that investment to a week or two to learn the system and another three or four weeks to build the solution."

Earl said the channel, as of March 2017, represented about 25% of Agiloft's business, adding that the partner segment is growing faster than direct sales. He said the channel could generate half the company's revenue by the end of the year.

The customer service automation software went live in 2012 with additional release cycles wrapping up in early 2013. Since then, ENKI has moved on to employ ENKI in the sales automation area and has also created a security compliance record module using the platform. The latter, which went into production in last year, tracks an ENKI customer's security state over time

Novikoff said the July 2016 launch of the continuous compliance module was "timed to align with our largest client's PCI year, so that they could have complete compliance records."

This year, Novikoff said ENKI is planning an enhancement to the module, based on lessons learned from using the software with pilot customers.

"In addition, we are investigating whether the module is mature enough to be used as a service separate from our managed cloud hosting services," he said.

Read about chief customer officers and their role in cloud provider firms

Find out why client review meetings are important for MSPs

Learn more about the year's top channel trends, which include automation

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Cloud hosting firm turns to Agiloft for customer support automation - TechTarget

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Demand for Managed Cloud Increases in Asia-Pacific Cloud Computing Services Market – PR Newswire (press release)

Asia-Pacific Cloud Computing Services Market Analysis, Forecast to 2022, new analysis from Frost & Sullivan's Communication Services Growth Partnership Service program, looks at technology, competitive and adoption trends in the cloud computing services market in the ASEAN region (Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam), Greater China region (Mainland China, Hong Kong, and Taiwan), India, Japan, South Korea, Australia, and New Zealand.

Click here to know more about Frost & Sullivan's research and to sign up for our Growth Strategy Dialogue, a complimentary one-hour interactive session with Frost & Sullivan's thought leaders.

Additionally, it is noteworthy that the "Big 3" public cloud vendors Amazon Web Services, Microsoft Azure, and Google are emerging as heavyweights in the cloud ecosystem due to their compelling "high-volume, low-margins" business models. Thus, competing in the managed cloud space also allows service providers to avoid head-on competition with the "Big 3" public cloud services providers.

"Scale ranks lower in importance in private cloud as infrastructure sharing is largely confined within the enterprise network, thereby making private clouds compelling as competitive strategies for cloud vendors," said Frost & Sullivan Data Centre & Cloud Computing Industry Analyst Yu Xuan Ng. "With most vendors viewing the public cloud as a red ocean, competition in the private cloud space will only pick up pace."

Separately, with the rise of the Internet of Things (IoT), the cloud is instrumental in enabling IoT applications to be developed and delivered. More enterprises in APAC are also redesigning their networks and deploying cloud services to deal with the explosion of data.

"Over the next three to five years, the APAC cloud market will gravitate towards a hybrid deployment model, which is part premises based and part cloud based," noted Yu Xuan. "Cloud vendors, for their part, will work on developing cloud-native ICT environments that support IoT, big data analytics, and mobile solutions."

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Asia-Pacific Cloud Computing Services Market Analysis, Forecast to 2022 P921-63

Contact: Carrie Low Corporate Communications Asia Pacific P: +603 6204 5910 F: +603 6201 7402 E: carrie.low@frost.com

http://www.frost.com

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/demand-for-managed-cloud-increases-in-asia-pacific-cloud-computing-services-market-300459790.html

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Watch the WannaCry bitcoin ransom trickle in – CNET

The WannaCry ransomware made on average $23,333 a day. Monday was its most successful payday.

In just four days, the WannaCry ransomware reeled in enough money to buy 8,750 servings of avocado toast (or maybe a modest house, if you're into that sort of thing). And now the ransom has doubled.

The global ransomware plague started infecting computers on Friday, abusing an exploit discovered by the NSA that was leaked to the public by the Shadow Brokers hacker group. It breached computers through phishing emails and then spread through networks using a Server Messaging Block vulnerability on outdated Windows computers.

Before it was accidentally (and only temporarily) shut down, WannaCry had locked down more than 200,000 computers in more than 150 countries, affecting banks, universities and hospitals, with a demand that the targets pay $300 worth of bitcoins by May 20. On Tuesday, the ransom doubled from $300 to $600, and the tally of WannaCry victims had reached more than 374,000 computers.

In the last 72 hours, more than 261 people have decided they would rather pay the ransom than lose their important files forever, according to trackers analyzing the three known bitcoin wallets. (You can track the amount yourself here.) A majority of the payments came on Monday, just hours before the first deadline passed and the ransom rose.

In total, the hackers behind WannaCry made $69,535 by Tuesday morning, as payments continued to flow in. While the original ransomware has been slowed down, patched variations of the malware -- pointing to the same bitcoin wallets -- have appeared, this time without a kill switch.

If every ransom ends up being paid, the hackers could make more than $1 billion from the breach. One risk analysis firm estimates that WannaCry could cost the world's economy $4 billion in damages and losses.

It's unclear who is behind the massive attack, but researchers have found clues in the code linking the ransomware to North Korea.

First published May 16 at 9:19 a.m. PT. Updated at 11:52 a.m.: Added details about the potential economic loss from WannaCry.

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Japan eyes prize in regulating bitcoin – Financial Times


Financial Times
Japan eyes prize in regulating bitcoin
Financial Times
Some US states have their own regulation for local bitcoin exchanges, but so far, no central government has taken the plunge and attempted to regulate an asset that was invented to defy regulation. It is easy to see why the FSA is keen to move: Japan, ...

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