This is a weekly browsing of recent relevant industry news articles, helpful for educating ourselves as well as for sharing with our peers. Please post any thoughts in the comments section!
Boston startup Turbonomic has a new batch of money and a well-connected new ally to help it keep pace in the fast-growing cloud enterprise market. Turbonomic announced on Monday that it had raised $50 million in financing from General Atlantic, with operating partner Gary Reiner joining the board. The investment values Turbonomic at more than $800 million, according to a source with knowledge of the deal. For Turbonomic, which offers a solution to help manage applications in a hybrid cloud environment, bringing Reiner onto its board represents something of a coup. The former chief information officer of GE's other board seats include Citigroup, Hewlett Packard Enterprise, Box and AppDynamics, expected to go public later this week.
Organizations continue their headlong rush into the cloud – but the people they depend on to manage this adventure are in a scramble to keep up, and, indeed, may be losing control of the situation. That’s the gist of a recent survey of more than 1,071 IT managers and professionals conducted by ScienceLogic, which finds that fewer than one-third have the visibility and control they need to keep things in check. At the same time, cloud adoption is occurring at a faster pace than anyone could have predicted.
Microsoft Corp. is securing its spot as the second most important cloud-computing company. The software giant Thursday posted big fiscal second-quarter gains in its web-based, on-demand computing business, emerging as the stiffest competitor to Amazon.com Inc.’s market-leading cloud unit. Revenue for Microsoft’s Intelligent Cloud segment, which includes its Azure cloud business, rose 8% to $6.9 billion. The gain was 10% when adjusting for currency fluctuations. The company said Azure revenue increased 93% as the usage of Azure computing services more than doubled from the year-ago period.
MIT Technology Review: Alibaba Targets the Global Market with Apsara Aliware Platform
It’s no secret: Organizations of all sizes are struggling to build the nimble architectures and secure backbones required for today’s digital-business needs and rapid-fire online transactions. To address this need, Chinese e-commerce and cloud-services powerhouse Alibaba recently debuted its enterprise-class Internet architecture, Apsara Aliware, which uses the underlying technology that powers Alibaba’s successful online marketplaces. Offered through Alibaba Cloud, the cloud computing arm of Alibaba Group, Apsara Aliware has introduced Alibaba’s cloud and middleware expertise to customers who are currently mainly in China, though Alibaba plans to offer the solution globally.
SAP SE raised its targets for 2020 as customers bought its latest suite of applications at a faster pace, and Chief Executive Officer Bill McDermott -- a fan of Donald Trump’s “The Art of the Deal,” -- said he wouldn’t “lay off the accelerator” on acquisitions, engineering investment or a potential share buyback. The updated outlook, on top of fourth-quarter sales that were in line with estimates, show how SAP, which supplies software for running factories, supply chains and financial accounts, is managing a transition from software installed on customers’ computers to online cloud-computing tools. SAP’s on-site software license business is barely growing, but its overall growth is still out-pacing that of competitors Oracle Corp. and a key software division at IBM Corp. Now the company is looking to deploy more of its 3.7 billion euros ($4 billion) in cash to fuel more growth.
Proponents of the private cloud typically focus on the operational benefits it offers an enterprise -- such as flexibility, agility and the ability to scale quickly. The financial stakes, meanwhile, are often less clear. Nokia is aiming to change that with its new, IDC-validated financial analysis that lays out the cost savings achieved by moving from legacy IT to a private cloud. After making the move, most large enterprises can save at least 25 percent on their IT costs over five years, the analysis shows. It also concludes that an enterprise can expect to break even on their investment in less than three years. The analysis -- called the Nokia Enterprise Private Cloud TCO Model -- was validated by IDC and is the first of its kind in the industry.
Containers are leading us into the third wave of computing where the fundamental unit of computing is shifting from virtual machines to containers. With the core infrastructure including hypervisors, operating systems, and management software getting optimized for containers, the next generation of web-scale, cloud-native applications will be running in containerized environments. Key players of this ecosystem – hypervisor vendors, OS software vendors, and infrastructure providers – are getting ready to deal with this transformation.