Posts Tagged ‘Cloud’

Indian Public Cloud Services Market To Be $838 Mn In 2015: Gartner

January 21st, 2015

Public cloud services revenue in India will reach $838 million by the end of 2015, an increase of almost 33 percent over 2014, information technology research and advisory firm Gartner said here Monday.Outsourcing50

“Public cloud services revenue in India will reach $838 million by the end of 2015, an increase of almost 33 percent, or $206 million over 2014 revenue of $632 million,” the statement said.

In 2015, public cloud services revenue is driven by high rates of growth in key market segments, cloud infrastructure as a service (IaaS), cloud management and security services and cloud application infrastructure platform as a service (PaaS), it added.

Spending on IaaS will total $104.8 million in 2015, an increase of 38 percent over last year. Spending on cloud management/security and PaaS will both grow 35.4 percent to $56.7 and $84.6 million respectively during the same period.

Gartner predicts high rates of spending on cloud services in India to continue through 2018 when the market is expected to reach $1.9 billion.

“Organizations in India seeking IT outsourcing services are increasingly turning to public cloud services as an alternative to traditional ITO offerings,” said Ed Anderson, research vice president at Gartner.

According to Gartner’s latest cloud adoption survey, 53 percent of organizations in India indicate they are using cloud services now, with another 43 percent indicating plans to begin using cloud services in the next 12 months.


IBM Reports Earnings Today And Is Expected To Discuss A Huge Reorg

January 21st, 2015

The company reports its fourth quarter earnings, the first one since CEO Ginni Rometty admitted she would not be keeping the promise made by her predecessor to return $20 earnings per share profit by 2015.Outsourcing48

Expectations for the quarter are modest. Analysts are looking for $24.77 billion in revenue, down almost 11% from the year-ago quarter, and adjusted earnings of $5.41 per share. That would be IBM’s 11th straight quarter without a year-over-year revenue increase.

For the year, IBM is expected to report $16.13 adjusted EPS and $93.55 billion in revenue, down about 6%, according to analysts polled by Yahoo Finance.

Some of that revenue decrease is on purpose. IBM has been selling its underperforming, less profitable units like its commodity servers (sold to Lenovo Group) and its semiconductor manufacturing operations (sold to Globalfoundries).

It’s been shifting investment into growth areas like cloud computing, big data, and mobile apps (via an agreement with Apple).

But, since abandoning the $20 EPS profit, called “Roadmap 2015,” CEO Ginny Rometty has not yet offered guidance on what the new profit plan or roadmap will be.

Reports are circulating that she is overseeing a huge reorganization of the company – one of the biggest re-orgs the company has ever faced, sources told Paul Kunert at the Channel Register.

Instead of separate hardware and software groups, a structure that’s been in place for eons, she’s reportedly creating new groups built around new business areas: Research, Sales & Delivery; Systems; Cloud; Watson; Security; Commerce and Analytics. The company will continue to operate its Global Technology Services unit.

Such a big reorg could also mean layoffs, which aren’t new to IBM. It’s a huge company that had over 400,000 employees worldwide in 2013 and it spent about $1 billion per year in both 2013 and 2014 on layoffs.

Then again, it’s also been hiring like mad in its growth areas, and is retraining some of its employees instead of laying them off.

Things have been so rocky for IBM since October, its last earnings announcement, that when 2014 drew to a close, Big Blue was one of the worst performing stocks in the Dow Jones Industrial Average for two years running. Rivals Oracle and Microsoft are currently both more valuable than IBM, by market cap (IBM: $155.3 billion; Oracle: $191.3 billion; Microsoft: $377 billion).

So, when IBM announces earnings, investors will be expecting to hear more about Rometty’s new profit targets and this reorg.


India public cloud service mkt to top $800-mn in 2015: Gartner

January 20th, 2015

Public cloud services market in India is expected to grow about 33 per cent to touch $ 838 million by the end of this year, driven by strong growth in cloud infrastructure and security solutions, research firm Gartner said today.

The public cloud services market stood at about $ 632 million in 2014.

High rates of spending on cloud services in India is expected to continue through 2018 and the market is poised to reach $ 1.9 billion by the same time, Gartner said in a statement.

“In 2015, public cloud services revenue is driven by high rates of growth in key market segments, cloud infrastructure as a service (IaaS), cloud management and security services and cloud application infrastructure platform as a service (PaaS),” it said.

Cloud computing refers to a pay-per-use model of computing where applications and software are accessed over the Internet and not owned by users.

IT companies can save huge costs on these products as they would not have to invest in purchasing them, resulting in reduced IT costs.

Some organisations, especially larger ones, set up a cloud-like infrastructure in their own data centre to secure data, which is called a private cloud.

Public cloud refers to providers such as Amazon, Google and, whose shared services are available to all.

Spending on IaaS is expected to total $ 104.8 million in 2015, an increase of 38 per cent over last year.

On the other hand, spending on cloud management/security and PaaS is forecast to grow at 35.4 per cent to $ 56.7 million and $ 84.6 million, respectively during the same period.

“Organisations in India seeking IT outsourcing services are increasingly turning to public cloud services as an alternative to traditional ITO offerings,” Gartner Research Vice President Ed Anderson said.

In fact, cloud services are not only being used for low-value or transient workloads but also increasingly for production workloads, including some mission-critical initiatives, he added.

According to Gartner’s cloud adoption survey, 53 per cent of organisations in India indicated they are using cloud services today, with another 43 per cent indicating plans to begin using cloud services in the next 12 months.

“Business process as a service (BPaaS) is expected to grow from $ 130 million in 2014 to $ 351 million in 2018. SaaS is expected to grow from $ 246 million in 2014 to $ 707 million in 2018,” Gartner Senior Research Analyst Fred Ng said.

The growth of cloud services varies by country and specific cloud service type and the Indian market is unique in that demand is consistently high for all types of cloud services, he added.


PacketDrivers IT Outsourcing Advises Businesses About the Transition to Cloud-based Technology in Recent Article

January 2nd, 2015

The natural transition that is occurring throughout all businesses, both large and small, is moving more and more into the Cloud. At least, that is the perspective of IT support company, PacketDrivers IT Outsourcing. Their recent article is written to help small businesses understand the importance of gradually transitioning to Cloud based technology.Outsourcing35

Cloud based software and applications are gradually becoming more prevalent, more useful, and more necessary, says PacketDrivers IT Outsourcing in their recent article. Ten years ago, it was no big deal if an email system went down for 10 days. Now, there is a major crisis for most businesses if it is down for even 10 minutes.

The article makes it clear that, while expectations and necessities for IT support have dramatically changed over the past 10 years, the switch to more Cloud based systems doesnt have to happen overnight. Many businesses are still too small to make the jump into the Cloud, and others simply dont have enough funds to take the leap. For businesses such as these, PacketDrivers IT Outsourcing still has some advice.

There are some businesses that just arent quite big enough to jump into the Cloud just yet. But they will need to eventually to keep up with technology, PacketDrivers says, To prepare for this inevitable transition, small businesses should set themselves up with as many Cloud based applications as fits their needs and industry.
By making small steps toward this more advanced type of technology, that is not only more affordable, effective, and reliable, small businesses can prepare themselves for future transitions.

Part of what we do at PacketDrivers IT Outsourcing is help businesses find ways to streamline their systems, services, and more as we work with you to move your business to more affordable, effective, and reliable IT options, the article says.

Small businesses that are eager to take steps toward the future should consider contacting PacketDrivers IT Outsourcing to learn more.


IBM pushes hard into the enterprise cloud

December 18th, 2014

IBM is building out its global computing network in a bid to focus on the enterprise cloud market.Outsourcing22

The company announced today that it is adding cloud centers in 11 new locations.

In a $1.2 billion investment, IBM has built cloud centers in Frankfurt, Mexico City and Tokyo. The other eight new locations come to IBM through a partnership with Equinix Inc., which operates data centers across the globe.

The partnership will give IBM access to data centers in Australia, France, Japan, Singapore, the Netherlands and the U.S., boosting IBM’s cloud network to a total of 48 cloud centers.

That growth is aimed at helping IBM grow its hybrid cloud business for enterprise clients.

“IBM recognizes that businesses and governments need the cloud to help them innovate, grow and operate more efficiently in concert with their existing IT investments,” said Robert LeBlanc, senior vice president of IBM’s software & cloud solutions group, in a statement. “Just as we helped major organizations transform in each preceding era of IT, IBM now serves as the cloud platform for the enterprise.”

This is a good move for a company that wants to court the enterprise, which is increasingly moving to the cloud, said Charles King, an analyst with Pund-IT, Inc.

“Lots of people are wondering if IBM is entering the market too late. I disagree with that,” King told Computerworld. “I think the market for cloud is not as mature as some people seem to think it is. There’s a lot of headroom in the hybrid cloud, in particular. As the market has become increasingly competitive, there’s going to be some interesting shakeouts in the months ahead.”

That shakeout should see major cloud players like Amazon, Google, Microsoft and IBM – grappling for marketshare, though King didn’t dare to guess where those top players will be a year from now.

He’s confident that IBM will continue to be a major cloud player with traditional business clients.

“You can see the other cloud players, including Amazon, making a pitch that their own services are ready for the enterprise,” said King. “IBM, though, is very well-positioned for that market right now. Markets evolve and mature in sometimes curious ways, so it will be interesting to see how IBM bears up as other companies try to invade the enterprise cloud space.”

Dan Olds, an analyst with The Gabriel Consulting Group, said IBM is putting some muscle into the game with what had to be a sizable investment in these new cloud centers.

“The cloud market is crowded and highly competitive,” Olds said. “IBM is trying to differentiate themselves through providing a higher level of service and support, along with giving customers the ability to negotiate their own service levels for their IBM clouds. Other competitors will do this as well, of course, but IBM’s experience in providing these types of services for decades through their outsourcing/hosting services arm should give them an advantage with these customers.”

Having an IBM cloud center located in their country will also give some customers the ability to use cloud computing for likely the first time, he added.

Many businesses and government organizations are not allowed to use cloud services that host their data outside their country.

“This could give these types of customers a chance to dip their toes into the cloud and see if it’s all it’s cracked up to be,” said Olds. “So, really, the key part of this announcement is the geographic spread of IBM’s cloud centers.”


5 Major IT Outsourcing Trends for 2015

December 17th, 2014

As 2014 draws to an end, businesses all over the world are guaranteed to be enthusiastic over the new opportunities that 2015 has to offer, particularly in the Information Technology (IT) segment. Next year, IT services and products are expected to fuel productivity, streamline organizational growth, drive innovation, develop capabilities, and enhance customer relationships.Outsourcing25

A post at lists down five of the major developments in the IT segment that companies should prepare for:

Innovative mobile apps and solutions
Businesses will integrate mobility and upgrade their already advanced capacity in various ways, and with that comes countless challenges which include security and flexibility. Regardless, firms will continue to empower their capacities with new applications that will help them properly engage with their customers.

Latest in cloud technology
Cloud technology is one of the strongest movers in today’s business industry. It enables companies to reduce the cost of operations and overhead expenses by paving the way for accessible data storage and information. As IaaS and PaaS continue to gain traction, development and testing of new applications are widely reinforced by this IT feature. The cloud has evolved from being merely a tool for disaster recovery and testing. The cloud is expected to assist in mobile functions and big data application development.

In-depth coverage on data and analytics
More applications will be created next year that are geared towards data and analytics. Businesses are seen taking advantage of all the data they collect from all activities, and are using it to improve competencies and strategies. Some of the trends in big data next year consist of linking Systems of Record (SOR) for various types and sources of content such as data, audio, video, and images.

New features in interface design and usability
Next year, the top trends for design will still be focused on In-web design – those that are used in code-free platforms, responsive design for mobile and smart gadgets, and flat design. For coding languages, the latest ones such as Hack, Go, and Swift will find their place amongst C, C++, Objective-C, HTML5, Python, Ruby, PHP, Java, C#, Javascript, Ruby, CSS, and SQL.

Covering protocols, domains, and applications
Forrester Research said the Internet of Things (IoT) will move to software from hardware next year. Cloud services will be utilized to connect all the rules or requests across all domains and platforms. Analytics and data will also increase as IoT continues to drive businesses including small to medium-sized ones to digitized processes.

By considering these trends next year, organizations can ensure that core strategies are not derailed and they will maintain their uniqueness in the aggressive and competitive world of business. – See more at:

Google Wins PCI Compliance Certification for Cloud Platform

December 3rd, 2014

The cloud platform certification should appeal to companies looking to outsource the processing of payment data to a third party that complies with PCI requirements, analysts say.Outsourcing111

Google has validated its Cloud Platform for compliance with the Payment Card Industry Data Security Standard (PCI DSS) in a move designed to appeal to businesses handling large volumes of credit and debit card data.

The certification will allow companies to store and process payment card data on the Google Cloud Platform in a manner compliant with PCI’s security requirements.
“We are offering the ability for customers that fall under PCI compliance rules to be able to build applications and services on top of the platform at Google scale” said Matthew O’Conner, product manager with Google’s Cloud Platform group. “They can be sure the platform is validated against PCI specifications.”

O’Connor said Google has been working with a third-party assessor for the past several months to get the various components of its Cloud Platform, such as the Compute Engine, App Engine, Storage Engine and Big Query analytics engine PCI certified.

“PCI has long been on our roadmap,” O’Conner said. “We have long had customers ask us to meet the requirements. We made a commitment to it and now we can offer them a compliant platform,” he said.

The PCI mandate developed by Visa, MasterCard, American Express and other major credit card brands, requires all companies handling payment card data to meet a formal set of security standards.

Companies that are not compliant with the requirements face stiff fines and other penalties if they suffer a payment card data breach. Over the years that PCI has been in effect many companies have complained about the standard being too costly and cumbersome to implement.

The PCI Security Council, which administers the standard on behalf of the card brands has recently begun requiring companies to ensure that any third-parties handling cardholder data on their behalf, also need to be PCI compliant.

“[So] in order for Google’s cloud offerings to be adopted by large retailers, they needed to remove the PCI DSS compliance ambiguity about their services,” said James Huguelet, principal at The Huguelet Group LLC, a consultancy in Sugar Grove, IL. “This paves the way for Google’s platform to be leveraged by merchants of all sizes,” he said.
Gartner analyst Avivah Litan, predicted that Google’s new PCI status would likely be of interest particularly for large businesses.

Large retailers often retain huge archives of customer cardholder data for a variety of reasons like chargeback management, fraud resolution and data analytics. The data presents a major risk for these companies and make them inviting targets for cyber-attackers.

“A lot of companies want to get rid of their PCI problem as much as they can,” Litan said. “One way to minimize the size and scope of the security audit is to outsource as much payment data as possible,” to third parties like Google, she said.

A PCI-compliant Google Cloud Platform gives retailers an alternative to having card data hosted and managed by their payment processor, Litan said. Google will still have to overcome the hesitation that many companies have about outsourcing any data, let alone something as sensitive as payment card data, to the cloud.

But for someone that already feels comfortable about outsourcing to the cloud, the new PCI-compliant Google Cloud Platform could hold some appeal, she said.

Google is not the only major cloud provider with a PCI compliant platform. Others like Amazon and Microsoft have achieved a similar certification for their cloud offerings. All Amazon Web Services that support storage, transmission or handling of payment card data are PCI certified, as are Microsoft’s Azure services.


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