July 7, 2014
Volume XLVIII, Issue 10
Aereo's Rivals in TV Streaming Seize Opening
Excerpted from NY Times Report by Emily Steel
Mark Ely saw an opportunity, and he took it.
The day after the Supreme Court ruled against Aereo in a copyright case brought by the nation's major broadcasters, Mr. Ely was trying to scoop up Aereo customers by promoting his start-up, Simple.TV, on social media. "Former Aereo customer? Join the Simple.TV Family," the company wrote on Twitter on Thursday.
"We're telling Aereo customers: 'Your favorite service is going away. Here's an idea that isn't,' " Mr. Ely, who started his company in 2011, said in an interview.
The television establishment still has much to worry about after its Supreme Court victory over Aereo, the digital start-up that had threatened to upend the economics of the media business.
"Television is a castle filled with money," said Rishad Tobaccowala, Chief Strategy and Innovation Officer at Vivaki, the Publicis Groupe's digital marketing unit. "People are trying to get into that castle and take some money."
But while the court's decision broadens the moat, traditional broadcasters still must find ways to defend themselves against an array of companies like Mr. Ely's that want to give viewers an alternative to the their model.
Eager for a piece of the $167 billion American television market, dozens of companies are offering options for the growing number of viewers known as cord cutters, who are canceling their traditional pay-television subscriptions. The providers range from Hulu, which the broadcasters own, to bigger services like Amazon, Google, and Netflix, all of which offer cheaper streaming alternatives.
Other companies, including Roku, Sling Media, TiVo, Simple.TV and Mohu, sell hardware that allows viewers to stream television to digital devices or watch web video on television sets. And Aereo may yet stick around; the company said on Saturday that it would pause its service temporarily as it sorted out its options but that its journey was "far from done."
"I don't think you are going to find a silver bullet to disrupt the broadcast industry," said Kenneth Lerer, a venture capitalist who has invested in a series of digital media start-ups. "I think you are going to find a lot of little bullets. Aereo was hoping it was a silver bullet."
Aereo and its two-year legal battle with broadcasters overshadowed the efforts of several other start-ups that offer ways to watch free over-the-air television on cellphones, tablets, laptops, and Internet-connected televisions.
Those companies paid tribute to Aereo, saying it helped advance the notion that there are ways to watch TV without paying expensive cable bills. But they are now trying to grab the spotlight after the Supreme Court ruled that Aereo had violated copyright laws by capturing broadcast signals on tiny antennas stored in warehouses and transmitting them to paying subscribers.
Mr. Ely started Simple.TV, based in Tiburon, CA, months before Aereo made its debut in 2012. A former president of Sonic Solutions, a computer software firm, Mr. Ely noticed how a growing number of people were watching television shows and movies over the Internet but did not have access to live television programming like news and sports. His idea was to sell consumers a "private TV server" that plugged into an antenna, a hard drive and a router.
With Aereo, subscribers paid $8 to $12 a month to rent a dime-size antenna stored in a warehouse. Users could then stream near-live television and record programs from major broadcasters.
With Simple.TV, people buy their own antenna and the $199 Simple.TV box. Users can record programs on a hard drive that they connect to the device. The company also sells a premium service that provides features like automatic recording and remote access from almost anywhere in the world.
Mohu, a start-up based in Raleigh, NC, also hopes to grow after the Supreme Court's ruling. The company, which sells over-the-air antennas and offers a streaming service, began as a military contractor developing high-performance antennas for the Army and Navy. Since its founding in 2011, it has sold 1.5 million high-definition television antennas to consumers.
The Supreme Court ruled that Aereo violated copyright law, granting television networks a much-desired win that will preserve the status quo — at least for now.
"Aereo made people aware that they can get high-definition broadcast television for free without paying for cable," said Mark Buff, Mohu's founder and chief executive.
The main difference between these companies — which have not drawn the ire of broadcasters — and Aereo is that their customers own the antennas and capture signals in their homes, as opposed to remotely. Mr. Ely and Mr. Buff say they believe that will satisfy the requirement under copyright law that the transmissions be private performances, a position that Aereo argued unsuccessfully before the Supreme Court. "Where you capture the signal makes all the difference," Mr. Ely said. "This fits squarely in fair use."
Simple.TV, which has 30 employees and counts tens of thousands of customers, has raised $5 million in financing and is working on a new round of funding.
Some venture capitalists said they would continue to invest in streaming-television start-ups despite Aereo's loss in court.
"If cable companies believe that their old ways of doing business are protected by the Aereo Supreme Court decision, they are clearly misguided," said Dan Nova, a partner at Highland Capital Partners, one of Aereo's backers. "Consumers are rejecting cable companies and traditional consumption models. The horse is out of the barn."
The number of households in the United States subscribing to pay-television services has slipped in recent years. About 101 million households in the United States subscribe to pay TV, down 7 percent from 2013, according to the research firm SNL Kagan.
At the same time, the total number of households in the United States that use the Internet or other streaming services instead of traditional TV to watch television shows or movies has climbed to 7.6 million, up about 30 percent from 5.8 million in 2013, according to SNL Kagan.
Recognizing the threat, cable and satellite companies are introducing options to lure new customers and keep those who might be tempted to cancel their subscriptions. Comcast, the largest cable provider in the United States by subscribers, is offering cloud-based television-streaming technologies; an Internet Plus bundle that includes broadband, basic cable and HBO; and special packages for college students.
Broadcasters, too, are trying to profit by offering to sell their programming to streaming companies that are willing to pay for it. During a phone interview after the Supreme Court ruling, Leslie Moonves, the chief executive of CBS, said his network did not oppose the new technology.
"We are not against people moving forward and offering our content online and all sorts of places, as long as it is appropriately licensed," he said. "Innovation is still alive and well and thriving."
Report from CEO Marty Lafferty
 The all new CLOUD DEVELOPERS SUMMIT & EXPO 2014 (CDSE:2014) is shaping up as THE place for organizational customers of cloud services to candidly assess deployment progress and let solutions providers know what they need to do better.
Attendees will hear case studies ranging from stunning success stories to humbling disappointments.
In addition to numerous hands-on instructional workshops and special seminars, on Wednesday October 1st and Thursday October 2nd, in Austin, TX, enterprise end-users from six sectors will take center-stage to share experiences from their adoption and evaluation of cloud-based business solutions.
The debut of Tim Hayden's forthcoming book The Mobile Commerce Revolution and a fascinating presentation on how Sense Corp., a customer of OutSystems, is leveraging cloud-solutions for the College Bound initiative will lead-off these discussions.
Cloud logistics customers will include such entities as Intelligent Audit, McDonalds, Port of Houston, Rand McNally, Solvoyo, Southwest Airlines, Sunoco, UPS, WalMart, and Worthington Industries.
Big data users will include organizations like Ayasdi, Evolv, Expedia, GE, Kaggle, Plano Independent School District, Splunk, Staples, Texas Parks and Wildlife Department, and The Weather Company.
Mobile cloud clients will include businesses such as Algar Telecom, Arcor, Cricket Communications, France Telecom-Orange, Sascar, Siemens Enterprise Communications (Unify), Subway, Telekom Deutschland, and Wells Fargo.
If you represent an organization that has adopted or is considering the adoption of cloud computing for logistics, big data, or mobile, and has an interesting story to tell, please contact DCIA CEO Marty Lafferty at your earliest convenience to schedule a speaking slot at the DCIA &CCA co-hosted CDSE:2014.
Media and entertainment end-users will include such companies as BigFishGames, Comcast, DigitalFilmTree, Disney, Lionsgate, NBC Universal, Netflix, Pac 12 Networks, Pixar, Sony Entertainment Games, and Time Warner Cable.
Healthcare and life sciences examples will feature examples like Baylor Healthcare System, Catholic Health Partners, Centegra Health System, Fred Hutchinson Cancer Research Center, Henry Ford Health System, Kindred Healthcare, Memorial Hermann Healthcare System, Seton Medical Center, St. Peters Healthcare, and Texas Health Insurance Pool.
Government & military customers will include agencies such as Austin City Hall, CSC, Federal Aviation Authority (FAA), GSA, Homeland Security, NASA, Securadyne Systems, State of Texas, US Veterans Affairs, and Whitlock.
If your company is based in media and entertainment or healthcare and life sciences or is a government bureau or branch of the military — and has experiences to share based on your implementation of cloud computing or your plans to implement it — please get in touch as soon as possible.
Key cloud services providers like Amazon Web Services, CyrusOne, Dell, Gaian Solutions, Google, HP, IBM, Internap, Kwaai Oak, MediaFly, Microchip, Microsoft, Neustar, Oracle, QinetiQ, Rackspace, SAP America, Seagate, UniDataIT, VDISpace, and VMWare will have additional end-user representatives.
If you are a cloud solutions provider, and would like to recommend your enterprise customers for one or more of these speaking roles — possibly in a joint presentation session with you at this major industry event — please call or email ASAP.
The CCA & DCIA are finalizing the conference agendaand speakers list to be included in the promotional materialsandconference program now.
Call or e-mail at your earliest convenience — CDSE is shaping up to be a remarkable event for cloud-computing customers. Share wisely, and take care.
The Power of Cloud Computing
Excerpted from Hospitality Biz Report by Shweta Ramsay
Every year, clever technological concepts enter into the market to tackle issues, solve problems, ease operations and keep the industry vibrant. Out of all the new trends in the hospitality industry, "Cloud" has been one of the most talked about, discussed, debated and adopted.
Cloud computing has today become the phrase du jour. The term cloud is used as a metaphor for the Internet and is an abstraction of the complex infrastructure it conceals. The "Cloud" simplifies the many network connections and computer systems involved in online services.
Any user with an Internet connection can access the cloud and the services it provides. Since these services are often connected, users can share information between multiple systems and with other users. The term came from the cloud symbol that network engineers used on network diagrams to represent the unknown (to them) segments of a network. Marketers further popularized the phrase "in the cloud" to refer to software, platforms and infrastructure that are sold "as a service;" i.e., remotely through the Internet. The major models of cloud computing service are known as software as a service (SaaS), platform as a service (PaaS), and infrastructure as a service (IaaS).
These cloud services may be offered in a public, private or hybrid network. Google, Amazon, IBM, Oracle Cloud and Microsoft are some well-known cloud vendors. Traditional business applications have always been complex and expensive.
The amount and variety of hardware and software required to run them are daunting. Cloud computing is already changing the way things work in the hospitality industry. Some of the advantages of using Cloud based technology is that it delivers faster time-to-value, requires minimal up-front capital expense, minimizes operational costs and saves on human resource.
Also, there is heavy scope of return on investment (RoI), since the subscription charges for a Cloud technology is much lesser than the investment required for in-house technology such as hardware, software, licensing, office space, racks, Annual Maintenance Contracts (AMC), Electricity, Manpower and others.
Kiran Pandey, IT Manager, Holiday Inn Mumbai International Airport explained, "Earlier there were limitations in accessing internal PMS (Property Management System) and POS (Point of Sales) system but with Cloud there are no limitations or challenges with regards to accessibility of any system as most of the cloud applications are web based and can be easily accessed through Tablets and Smartphones. E.g.: Front desk team can take 'check-in/check-out' at any place in lobby whereas restaurant stewards can take and punch order on guest table itself. And most important for management is operation runs in less manpower with great guest satisfaction which all hotel management wants."
Rajesh Kr Gupta, General Manager, The Orchid Mumbai said, "Cloud computing has changed for sure the way things function. There are various examples like the Global Distribution System (GDS) and other forms of reservation enablers available on the cloud. Also, online marketing has seen a tremendous spurt since the advent of cloud computing. Various Cloud based applications are seen and have been used in recent times for booking hotels, air tickets, holidays and more. These are the changes which will further enhance and improvise the way the hospitality industry functions."
One of the great advantages of Cloud based solutions is that it stops the hotel from having to manage the underlying infrastructure. Traditionally, when offering an application to the operation one would need to provide and administer the servers that the application runs on. There is no real competitive advantage in doing this; the advantage comes from leveraging the application to drive efficiencies from it. Companies that take advantage of this can drive a benefit from having their resources focus on using the applications to manage the business rather than incurring cost for administering the infrastructure. Regional and global hotel chains are generally amongst the first to adopt newer technologies such as cloud computing solutions.
Smaller independent properties are more cautious and likely to be more concerned with the immediate upfront costs of new technologies instead of the lifetime benefits advanced, automated solutions can bring. Commenting on how receptive the hotel industry is towards Cloud based solutions, Sanjay Nagalia, Chief Operating Officer, IDeaS opined, "Overall, cloud computing is becoming increasingly popular and usage is more widespread across the hotel industry.
Property managers recognize that cloud based software can deliver operational efficiencies, long term cost savings and also allow them to interact better with and appeal more to increasingly tech savvy guests." Binu Mathews, CEO, IDS Next Business Solution stated, "The trend towards cloud based solutions is only getting more aggressive. There is hardly a need to make a case for Cloud based solutions as the hospitality industry is already using it in areas like distribution.
Hotels are already selling their rooms through OTAs (online Travel Agents), GDS and corporate portals. Many hotels are selling rooms through the web booking engine located on their website. Hotels are also using other solutions like online reputation management, loyalty management and others that are Cloud based." Today, when it comes to accessing cloud solutions, hotels are using loyalty solutions, business intelligence, revenue management, online reputation management, emailing tools and even a few modules of the property management solutions.
This simplifies operations for hotels, introduces a whole range of flexibility and transparency, real time access to information for hotel staff, and enables them to work faster and respond to guests better. Many hotels across the globe are adopting cloud based solutions to get rid of the cumbersome hotel management system which requires a lot of hardware and manpower to support operation. Jeremy Ward, Sr Vice President Information Technology, Kempinski Hotels clarified, "In theory the operations team should see no difference from a Cloud based solution to an in-house one, ultimately the operations department wants to use the application.
You tend to have a greater Service Level with Cloud applications so the end user sees less interruption to the application but the real benefit comes at the IT and commercial level and the lack of administration required to offer the application or infrastructure." Pravin Pandey, IT Manager, Jaipur Marriott elucidated, "Cloud computing can be a very powerful tool for hospitality as the service providers like Amazon, Microsoft have a Service Level Agreement (SLA) of 99 per cent uptime. Also, the maintaining of records, databases are online which means they can be accessed anywhere irrespective of the location and the reporting functions are quicker as they can be directly accessed by anyone with genuine credentials from any location.
With cloud computing the systems is online 24x7 which is the first priority of any hospitality industry. Also, the updates and upgrades can be scheduled in such a way so as to minimize the impact on operations as most of the service providers have some kind of backup systems in place for switch over. Also, the resolution time in cloud computing is quite less as against in-house solutions as there is someone monitoring the systems and is always available irrespective of the time zone."
In an increasingly mobile world, one of the greatest advantages offered by cloud technologies is that it provides hotel managers the ability to access key booking and operational data, including demand forecasts, from anywhere at any time. Cloud solutions also offer the flexibility of quickly and easily scaling up or down to the required level of storage space and processing speed, which is vital for hotels in the current climate of massively increasing data. Cloud based solutions offer hoteliers a seamless user experience through their ability to better integrate with partners through single-sign on functionality.
Critically, cloud solutions also have better disaster recovery systems in place than found within a hotel's own traditional IT set-up meaning that important operational and guest data is not lost. Cloud systems can also be deployed rapidly with little to no delays for system activation once subscriptions have been processed. This is a vast improvement over technologies that require manual hardware installation. Rajesh Kumar Kotta, CEO & Founder, eZeeCloud said, "The cloud-based system is the way to take the hassle out of IT infrastructure management, wherein hoteliers can concentrate on their core business.
Cloud-based SaaS is cost efficient, as it requires no upfront software license cost, no upfront hardware cost, no operating system and anti-virus cost, nor IT team cost. Critical to eZeeCloud's high reliability is the redundant systems in place to ensure smooth operation in the event of failure or breakdown of one or more infrastructure components. Redundant hardware devices, disk drives, network connections, power supplies and software components are in place to continue delivering services transparent to the end user.
Also, we understand how important security is for hoteliers and guests. We back the technology with an experienced team of systems and security experts who follow proven administration procedures to safeguard application and data," he added. There have been concerns from some hoteliers around the possibility of a cloud-based technology solution going down and the potential of being unable to address issues because systems are not stored onsite. Some hoteliers are also apprehensive about utilizing cloud based technologies because of fears around the security of the data stored in the Cloud.
Addressing these concerns, Nagalia mentioned, "Hoteliers need not be worried as cloud-based systems are hosted on powerful servers and the chance of them going down is very slim. Additionally, data is constantly being backed up in the cloud and can be easily recovered, even if a local computer network crashed. However, what hoteliers should be aware of is that most cloud-based companies put huge resources towards encrypting and securing data, which means that most data stored in the cloud is even better protected than the data stored by hoteliers themselves on their own severs / behind their own firewalls."
According to Mathews the only limitation right now is the Internet penetration in India. Not all parts of the country have high quality Internet connectivity like metros of Delhi, Mumbai, Kolkata, Hyderabad, Bengaluru and Chennai. The disruption of Internet means the hotel experiences downtime and cannot access the solution. However, this is set to change in the next two to five years. Safety is a legitimate concern when it comes to 'cloud' as critical data is stored on the cloud and a security breach can mean the loss of critical data like credit card details and more.
Today most service providers are extremely conscious about security issues and usually have two- three layers of security, including firewalls, intrusion detection systems, and SSL encryption that are constantly tested to locate weaknesses and potential breaches. Ward claimed, "Security is, of course, an important factor when looking at any Cloud solution. You need to know who your provider is and where they are hosting the application from. When we look at the virtual security you also need to look at items such as two factor authentication, PCI compliance, logging and reporting. If you work closely with your supplier you can implement significant and sufficient security measures. The same is true for data privacy, in most cases you need to conform to local regulations."
Patel said, "Safety security along with guest data privacy is a big concern today. It starts from Cloud data hosting to users who are going to access those data. Most of the things can be handled by taking appropriate actions and SOP's at user level." Gupta further confirmed that today majorly all the banks and financial institutions are on cloud, thus emphasizing the fact that the security level of data centers are indeed secure. Banks will never compromise any breach or intrusion into guest data. So it's high time that hotels too, lay to rest their concerns, of security and privacy of data and take a positive step ahead.
Pandey expressed, "Another major disadvantage with cloud computing is that the company is always dependent on a third party as all data is stored directly on the service provider servers. There is no control over any kind of data flow-through by the parent company. Also, since the servers are online there can be major security breaches like hacking and data theft which could lead to serious consequences in the hospitality sector."
The abundant supply of information technology capabilities at a low cost offers many enticing opportunities. Like any new technology advancement, Cloud computing also creates disruptive possibilities and potential risks. Commenting on the use of Cloud computing in the coming years, Mathews said, "In the coming years, we will see hotels using more and more of the Cloud. IDS Next in fact is actively developing its entire Hotel ERP into a cloud ready offering. This is undoubtedly a herculean task, but it is well underway.
When this happens it will be a revolutionary offering with end to end hotel operations — Front office and back of the house seamlessly accessed through the cloud. The agility, transparency and accountability of a Hotel ERP (Enterprise Resource Planning) like this will empower hotels with a new level of efficiency. Nagalia exclaimed, "Cloud computing solutions will continue to become more widespread across the hotel sector. As cloud technologies become more affordable and accessible, the usage benefits of cloud solutions will be better recognized by smaller, independent properties.
In coming years, this section of the market will see the biggest growth in uptake." Cloud is expanding all over the globe. Cloud hosting providers have a lot to consider when deciding where to invest infrastructure, but it'd be foolish not to recognise that the transition is happening everywhere. It is definitely the time to embrace the cloud.
Octoshape Scores Live HD Streaming of FIFA World Cup
Octoshape, an industry leader in cloud-based, over-the-top (OTT) stream acceleration and contribution technologies for broadcasters, announced that MEDIAPRO Group, an international leader in data transmission for the broadcast industry, selected Octoshape Infinite HD-M to live stream comprehensive World Cup coverage in high definition (HD) format from Gol Television, MEDIAPRO's Spanish sports pay TV network.
Anticipating record-breaking traffic numbers for on-line viewing combined with both SD and HD viewing options, Gol Television selected Octoshape's patented stream acceleration technology for the HD OTT service after testing multiple providers. This high performance technology allows viewers access to an alternative, higher quality viewing experience.
"The FIFA World Cup comes around once every four years, so it was important to us to be able to offer our subscribers options," said Emili Planas, Operations Director at MEDIAPRO. "Soccer fans who really want to immerse themselves in the close-up intensity of the championships, now have Octoshape services for access to no-buffer, no-interruption, broadcast quality HD content."
In addition to the stream acceleration distribution service, the solution for the Spain-based broadcaster also includes advanced IP-based geo-filtering that allows and restricts access to streams based on a geographic region. Premium support services are also a part of the solution for the month-long Championship.
"We are thrilled to welcome MEDIAPRO and Gol TV to the Octoshape platform," said Michael Koehn Milland, CEO at Octoshape. "The 2014 World Cup Championship represents the ultimate benchmark in terms of delivering a successful over-the-top high quality experience, and we anticipate a long-term collaboration with them as a result."
Octoshape's technologies are adopted by some of the largest broadcasters, technology and service providers in the world, enabling them with OTT/IPTV and TV Everywhere services at the highest possible quality and scale. The platform outperforms traditional content delivery technologies, across any geographical region, and on all marks, including start-up time, buffer time, quality and view time.
Telefonica Uses Cisco's HCS Platform for Business Customers
Excerpted from Telecompaper Report
Telefonica is extending its corporate collaboration portfolio with Cisco's Hosted Collaboration Solution (HCS) product to give large companies cloud-based access to a series of communications applications and services.
These include Unified Communications, mobility and video, as well as a virtual contact center and a complete suite of collaboration applications such as Cisco WebEx for web videoconferences and Cisco Jabber for accessing presence, instant messaging (IM), voice, video, voice messaging, desktop sharing and conferencing.
HCS will allow business customers to deploy their own virtualized contact centers in Telefonica data centers, giving them the same functions as if they were on-premise contact centers, while avoiding capital expenditures and platform updating costs.
The service is based on a monthly payment model, enabling companies to improve productivity by using the latest collaborative tools on demand and with no capital investments or license fees.
BitTorrent to Monetize Bundle Format
Excerpted from MusicWeek Report by Tom Pakinkis
BitTorrent hopes to soon give artists the ability to charge for content sent to fans in BitTorrent Bundles.
BitTorrent Bundles are digital packages containing content such as tracks, photos, videos and more, which artists are able to make available to fans. Madonna, Moby, and Public Enemy are among music acts who have made use of the format.
To date, the Bundles have been free to share and download. Some have been set up to require an email address to gain access, while others have garnered revenue for artists by promoting a piece of paid for software with the hope of users being upsold.
But BitTorrent is now hoping to allow artists to monetize Bundles directly within the next few months, according to Billboard. The move would mean that the email gate required to gain access to content in the Bundle could be replaced with a pay gate.
Billboard says that BitTorrent will take 10% from pay gate transactions.
"If you look at all of the ways that projects have monetized within BitTorrent, we've been able to drive album sales, box office sales, DVD sales… we've driven all kinds of social and fan engagement," BitTorrent's Matt Mason told Billboard. "For every single Bundle that we do, on average, one in fours fans shared the fact that they downloaded that bundle on Twitter or Facebook. Fans are starting to understand that Bundles are this small direct connection to artists, which makes them actually compelled to share and support that content.
"The big idea here is that everybody else on the Internet that has built a store has put content inside that store," he explained. "What we're trying to do with a Bundle is put the store inside the content. So, everywhere that Bundle travels - whether it's embedded in a blog or on Facebook - whenever someone opens that file, they'll get some valuable stuff for free and then they'll have an opportunity to pay for some more stuff."
Google & Microsoft Partner on New Ethernet Standard
Excerpted from Data Center Knowledge Report by Yevgeniy Sverdlik
Google and Microsoft have teamed up with Arista Networks, Broadcom, and Mellanox to create a consortium around a new Ethernet standard for connecting servers to top-of-rack switches in data centers to support the next generation of cloud computing network requirements.
The 25 Gigabit Ethernet Consortium's aim is to promote quick development of higher-bandwidth access networking equipment needed to support workloads in hyper-scale data centers whose requirements will soon surpass the 10 Gigabit per second Ethernet and 40 GbE protocols being supported today, according to the members.
The specification for is available royalty-free to any vendor who joins the consortium. It prescribes a single-lane 25 GbE and dual-lane 50 GbE link protocol.
The consortium's goal is to define the standard for physical and media access control layers to enable rollout of compliant equipment over the next 12 to 18 months.
Companies like Google and Microsoft, which build massive data centers to support delivery of their services globally, will benefit from both capital and operational expense savings since the standard will enable them to reduce overprovisioning of resources.
"The new Ethernet speeds proposed by the Consortium give superior flexibility in matching future workloads with network equipment and cabling, with the option to 'scale as you go,'" said Yousef Khalidi, a distinguished engineer at Microsoft.
"In essence, the specification published by the 25 Gigabit Ethernet Consortium maximizes the radix and bandwidth flexibility of the data center network while leveraging many of the same fundamental technologies and behaviors already defined by the IEEE 802.3 standard."
Networking hardware vendor Arista and silicon vendors Broadcom and Mellanox are major suppliers for the hyper-scale data center operators.
Mellanox and Broadcom both have switch designs based on Facebook's Open Compute specifications. Arista, which went public last month, lists Facebook, Microsoft, Yahoo and eBay as customers.
NIST Forming New Cloud Computing Working Groups
Excerpted from FEDWeek Report
The National Institute of Standards and Technology (NIST) has announced that its Cloud Computing Program — NCCP, is forming three public working groups to provide solutions to cloud computing challenges.
NCCP provides leadership and guidance to catalyze and facilitate the use of cloud computing within industry and government, and it recently held a teleconference to recruit new members.
NIST said the working groups bring together industry, government and academic experts from across the world to address requirements laid out in the NIST's Government Cloud Computing Technology Roadmap, Release 1.0 draft.
They will include an interoperability and portability for cloud computing working group, a cloud services working group (which will address the roadmap's Requirement 4 - clearly and consistently categorized cloud services) and a frameworks working group (addressing the roadmap's Requirement 5 - Frameworks to support seamless implementation of federated community cloud environments), according to NIST.
Cloud Computing now Norm in Hybrid IT Market
Excerpted from Information Age Report by Chloe Green
Cloud computing has achieved mainstream deployment in the UK according to the latest research from the Cloud Industry Forum (CIF), with some 78% of organizations formally adopting at least one cloud-based service.
The research, conducted in June 2014, polling 250 senior IT and business decision-makers, indicated a nine-point increase or 15% growth over the last research project conducted in September 2013. This suggests an annualized growth rate of nearer 20% by the end of September 2014. Since the first research was conducted in 2010, UK Cloud adoption has grown by 61.5%.
Large private enterprises are showing the highest rates of adoption at just over 80% whilst the sub 200 employee organizations are standing at around 75% and the public sector is still lagging at around 68%.
To set context, the research also recognizes that the majority of organizations (85%) operate on-premise servers or data centers. The existence of on-site technology is also a direct influence on the evolution of IT strategy based on historical investment. The co-existence of on-premise and cloud services by nature leads to a hybrid IT environment for the majority of organizations.
Of those using Cloud services, 45% use only one cloud service formally, 28% use two Cloud services, 13% use three and the remaining 14% use four or more.
The study also found that 79% of organizations now formally consider cloud as a part of their IT strategy; 72% of organizations make new IT deployment model decisions based around infrastructure refresh; and 61% organizations reported running Windows Server 2003, which formally goes end of support in July 2015 and will drive a new wave of opportunity for Cloud services adoption over the next year.
Web hosting, email, CRM, data back-up and disaster recovery continue to be the most pervasive Cloud services used. This is followed close behind by video conferencing, collaboration solutions, HR apps and data storage
Looking into the drivers for first time Cloud adoption, flexibility of Cloud as a delivery model continues to be cited as the primary reason for adoption among private sector companies (17%), while operational cost savings dominates the public sector (21%)
'We have now conducted five research projects over 48 months looking at Cloud adoption in the UK, and as such have a sound basis for assessment and evaluation of trends,' Alex Hilton, CEO of CIF, stated. 'Over the next year we can say with some confidence that first time Cloud adoption will increase by 12 points — or 15% in real terms. This means that 90% of all businesses in the UK will be formally using at least one Cloud service by the end of 2015. In the near term adopting will be driven in part by the end of support for Windows Server 2003 that concludes in July 2015.'
'We can also predict that 10 per cent of businesses will likely report a primary Cloud-based IT strategy, 10 per cent will remain entirely on-premise and 80 per cent will have a Hybrid IT environment. This means that nine out of ten companies will continue to invest in on-premise IT alongside and integrated with Cloud solutions. In other words we are in fact seeing the normalization of Cloud in the Hybrid IT market.'
Nick East, CEO of Bath-based Zynstra, pioneers in Cloud managed server appliances for SMBs, said of the research: 'SMBs are vital to the wellbeing of the economy and make up the majority of businesses in the UK. This research showed that over half of SMBs are running IT systems that are close to the end of their supported life. SMBs are turning to Cloud, with 69 per cent stating they consider an infrastructure refresh to be an opportunity to adopt a managed Cloud solution.'
Nick continued: 'With this in mind SMBs need to consider which Cloud solutions are going to be the best fit for them in the future. Leaving it until the end—of—support date has passed is going to cause a major IT headache.'
"Cheaper and Faster" Just Part of Cloud Story
Excerpted from FedScoop Report by Greg Otto
For both the public and private sector, agility is starting to outweigh cost when it comes to cloud computing.
A new Harvard Business Review survey released Wednesday found that large and midsize organizations that have adopted cloud computing have seen an increase in business agility.
Seventy-four percent of the 527 people surveyed said their business has gained "some" to "significant" advantages thanks to cloud implementation. When asked how cloud allowed businesses to achieve those advantages, the respondents said cloud enhanced their responses to market changes, provided easier data accessibility and boosted collaboration between team members.
"None of these businesses were leading with, 'We've saved money,'" said Angelia Herrin, a research director for Harvard Business Review. "Two or three years ago, people said, 'If you just adopt cloud to do things cheaper and faster, you're going to miss out. Someone is going to eat your lunch.' I think this report points out that people are beginning to get that, and the power users and [cloud] enthusiasts get that."
Helen Donnelly, the cloud marketing director for Verizon (a co-sponsor of the survey), said the survey shows some "interesting parallels" to the way the public sector is integrating its own cloud computing services.
"I think this shift toward not just looking at cloud as a race-to-the-bottom commodity cost saver but more as an enabler of agility is relevant to the public sector," Donnelly said.
Donnelly said there can be a "meeting of the minds" as to how the public and private sector can learn from each other's cloud integration.
"There are certain aspects of cloud adoption and standards with respect to process and methodology that the private sector could do well to learn from the public sector," Donnelly said.
One aspect of cloud computing where the public and private sector differ is security. In the study, 65 percent of respondents said cloud has either increased security or had a neutral impact.
"Security is notably absent as a consideration for concerns about the cloud," Donnelly said. "Businesses are turning a blind eye to IT as an enabler, saying, 'I don't have to worry about that and can use my credit card and go buy the cores I need and I'm good.'"
Donnelly said the government's approach to cloud security has been "a little more pragmatic," pointing to the Defense Information Systems Agency as an example.
"They talk about this catalog of standardized services and architectures to leverage the cloud but also effectively standardize the approach to [how] this capability is going to be delivered to [other] defense agencies," she said.
Companies who consider themselves "enthusiasts" of cloud computing are also tinkering with a hybrid of public and private cloud use. Cloud enthusiasts were almost split between fully-private and hybrid cloud use (40 percent to 39 percent, respectively) while those who were cautious about cloud tend to stick to private models.
Donnelly said while the public sector would need to work out the kinks before integrating a hybrid model, she sees room for it.
"Hybrid cloud is a great concept, but how you securely share and connect those clouds together is really fundamental to how this is going to work," she said. "There's definitely the large majority moving towards private cloud, but I think when you look at the development of tech life cycle, of how applications get built, some of the front end pieces can easily be done in public cloud."
Cloud Computing Sector Favored by Venture Capital
Excerpted from China Economic Net Report by Ai Fang,and Cui Guoqiang
As its industrial pathway becomes clear, cloud computing is turning into the target of all capitals, and spurring a flurry of cloud computing industrial funds.
The 6th China Cloud Computing Conference currently held in Beijing sent a message that global cloud computing, including that of China, has entered a rather mature industry growth period, with the volume of China's cloud computing industry last year reaching RMB 100 billion Yuan. At the National Cloud Computing & Big Data Innovation Projects Election and Venture Capital Forum, people from the cloud computing and big data industry, the financial circle, and the technology world gathered together, offering their opinions and advice for the integrated development of cloud computing and venture capital.
He Xiaofeng, Vice President of Beijing Private Equity Association and Peking University professor, said cloud computing and big data would bring epoch-making changes to the financial world, and PE (private equity) and VC (venture capital) also regard the cloud computing industry as an attractive field for investment.
In 2010, the Chinese government listed cloud computing as a strategic emerging industry that would receive major government support. Later, the Ministry of Industry and Information Technology and the National Development and Reform Commission jointly published the Notice on the Doing Well the Work of Cloud Computing Innovation Pilot, which laid out the plan to carry out the cloud computing service innovation pilot in 5 cities first. In July 2012, the Development Plan for National Strategic Emerging Industries during the 12th Five-year Plan listed the Internet of Things and cloud computing as one of the top 20 key projects.
"From a worldwide perspective, many companies that engage cloud computing, such as IBM, Microsoft, and Google, have witnessed good growth. By promoting paid cloud computing products and enhancing cooperation with governments, they have gained preemptive competitive advantages in the field of cloud computing". He Xiaofeng believes that cloud computing can effectively reduce the operation cost of PE funds and improve business and management efficiency; besides, the abundance of investment opportunities in the cloud computing industry and its great market motivation will attract the participation of PEs and VCs.
It is learned that so far companies like China Mobile, China Unicom, China Telecom, Tencent, and Alibaba have made huge investment in the construction of the cloud computing industry, and it is estimated that the industry would continue to expand at an expressive rate.
Experts point out that compared to America and Europe, the total volume of China's current cloud computing service market is rather small, but the potential huge market demand will propel the rapid development of related industries. In the meantime, the cloud computing industry has evolved from being government-guided to market demand-guided, and well-known companies are getting involved with the industry. The industry would soon see a "golden period" of investment.
With the continuous development of the cloud computing industry, a weak link has appeared in the material progress of the industry. Lin Runhua, vice secretary general of the Chinese Institute of Electronics, told the reporter that the "weak link" is how to use the power of capital to push forward the development of innovative projects and companies in the cloud computing industry.
According to Lin Runhua, the Chinese Institute of Electronics established China's first "Cloud Computing Expert Committee" in as early as 2008, and the first "China Cloud Computing Technology and Industry Confederation" in 2010, and organizes the "China Cloud Computing Conference". The institute's "Cloud Computing Expert Committee" and "China Big Data Expert Committee" have the most influential experts and renowned entrepreneurs in China's cloud computing and big data area, and are widely influential in and out of China. "However, capital maneuvering is not the strong suit of the Chinese Institute of Electronics. So we are looking for a capital who understands cloud computing and is willing to work with us to advance the development of the cloud computing industry", said Lin Runhua.
On January 18, the Chinese Institute of Electronics officially signed cooperation agreement with Faith Capital, both parties jointly establishing the "China Cloud Computing & Bid Data Industry Development Fund". The volume of the fund at the first stage is RMB 200 million Yuan, mainly used to invest in outstanding growth enterprises in China's cloud computing and big data industry.
"At present, there are a lot of investment funds in the field of IT, but very few are truly dedicated to the two emerging industries of cloud computing and big data". Mou Honglei, a partner of Faith Capital, said that the "China Cloud Computing & Bid Data Industry Development Fund" initiated and established by the Chinese Institute of Electronics is a major highlight of the industry. It will also provide the greatest guarantee to the project source and quality of funds.
"Faith Capital will make the best use of the expert and human resources of its cloud computing committee and big data expert committee and the corporate resources of its industry confederation to promote the rapid development of the cloud computing industry". According to Wu Tao, Chinaman of the Board of Faith Capital, in terms of expanding financing channels, Faith Capital, on one hand, would work systemically with organizations like the Investment Association of China and Beijing Private Equity Association, and, on the other hand, would look for outstanding companies, to support the long-term development of companies through appropriate financial products or in appropriate ways. In addition, it would enhance cooperation with local governments to expand and enhance industrial clusters.
The government needs a commanding point or platform when managing the industry, so as to create cluster effect on the development of the whole industry. Also, more importance would be attached to systemic mindset when investing in fields like cloud computing and big data. For instance, when making investment in a company, it would pay special attention to whether the company can solve essential problems concerning cloud computing and big data; it would continue to discover core technologies of some innovative areas, in the hope of pushing forward the sustainable development of China's cloud computing industry.
Coming Events of Interest
Silicon Valley Innovation Summit — July 29th-30th in Mountain View, CA.AlwaysOn's 12th annual SVIS is a two-day executive gathering that highlights the significant economic, political, and commercial trends affecting the global technology industries. SVIS features the most innovative companies, eminent technologists, influential investors, and journalists in keynote presentations, panel debates, and private company CEO showcases.
International Conference on Internet and Distributed Computing Systems — September 22nd in Calabria, Italy. IDCS 2014 conference is the sixth in its series to promote research in diverse fields related to Internet and distributed computing systems. The emergence of web as a ubiquitous platform for innovations has laid the foundation for the rapid growth of the Internet.
CLOUD DEVELOPERS SUMMIT & EXPO 2014 — October 1st-2nd in Austin, TX. CDSE:2014 will feature co-located instructional workshops and conference sessions on six tracks facilitated by more than one-hundred industry leading speakers and world-class technical trainers.
International Conference on Cloud Computing Research & Innovation — October 29th-30th in Singapore. ICCRI:2014 covers a wide range of research interests and innovative applications in cloud computing and related topics. The unique mix of R&D, end-user, and industry audience members promises interesting discussion, networking, and business opportunities in translational research & development.
PDCAT 2014 — December 9th-11th in Hong Kong. The 16th International Conference on Parallel and Distributed Computing, Applications and Technologies (PDCAT 2014) is a major forum for scientists, engineers, and practitioners throughout the world to present their latest research, results, ideas, developments and applications in all areas of parallel and distributed computing.
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