Google, Microsoft head for cloud battle with Amazon

The 2 tech giants plan to pitch their cloud infrastructure platforms in direct competition to the e-tailer.

Amazon  is the leader in the cloud-computing space, thanks to the immense popularity of Amazon Web Services. The cloud-based infrastructure platform enables developers to create scalable Web-based software powered by the company's massive infrastructure.

Amazon competes primarily with Microsoft's Azure, Google's App Engine, Salesforce.com offerings such as Heroku and Force.com, and Rackspace.

However, Microsoft and Google offer cloud platform-as-a-servic​e offerings, which enable developers to run their apps on their servers, compared to Amazon's cloud infrastructure-as-a-​service offering that gives greater control of the entire virtual environment to developers. (Microsoft owns and publishes Top Stocks, an MSN Money site.)

Google and Microsoft are apparently planning to go up against Amazon by launching their cloud infrastructure platforms, which will compete more directly with Amazon's Elastic Computing Cloud. Amazon generates a significant portion of its revenue from Amazon Web Services, and is on track to generate roughly $2 billion from this business in 2012.

We expect Google's and Microsoft's focus on cloud offerings and their efforts to directly compete against Amazon will lead to a decline in Amazon's market share in the space. You can check out the impact of a slowdown in Amazon's revenue from cloud and other Web services on its value using this chart:

Amazon Cloud and Other Web Services Revenues
Cloud and other Web services account for around 3% of Amazon's total value. We currently have a $222 Trefis price estimate for Amazon, which stands near its market price.

NASA Drops Development for OpenStack Cloud Computing Software

Space agency NASA is withdrawing its participation with OpenStack Space agency NASA is withdrawing its participation with OpenStack
Space agency NASA is withdrawing its participation with OpenStack, the open source cloud organization it co-founded with web hosting company Rackspace, according to a report by DatacenterDynamics.

Since launching two years ago
, the OpenStack community of developers and cloud computing technologists have continued to improve on the open standard cloud computing software.
In more recent months, the open-source platform has seen a growing level of commercial adoption, drawing support from Dell, IBM, Cisco, HP, Yahoo!, and Red Hat.
In a presentation at Uptime Institute’s symposium on Tuesday, Karen Petraska, service executive for computing services at NASA’s CIO office, said the agency will scale back its development of the open-source platform now that it has started to see commercial adoption.
Petraska added that NASA is not interested in competing with commercial cloud companies, and would rather be a “smart consumer” of commercial cloud services.
In addition to reducing its work with OpenStack, NASA also said it will cease its developmental involvement with cloud infrastructure solution Nebula.
NASA’s move comes just a few weeks after its fellow OpenStack co-founder Rackspace revealed it will continue to build on its cloud investments like OpenStack to ramp up future revenues following a slightly disappointing first quarter.
Meanwhile, OpenStack continues to flourish in development, releasing its fifth version, Essex last month. The new platform is the culmination of contributions from  200 developers, and boasts 150 new features.
NASA’s Jet Propulsion Laboratory website was breached last November, which resulted in hackers being able to install malware, delete or steal private information, and take control of user accounts to access privilege sections of the network

Who needs cloud computing?

Google Drive launches
Some will have to wait to take Google's new offering for a test drive. (Google / April 24, 2012)


With all of the chatter around Google Drive and the like, you may be wondering whether you should have a cloud drive somewhere.
Some people live blissful digitally disconnected lives -- free of smartphones, free of Facebook, devoid of a digital photo album with snapshots of everything from their baby to their breakfast, no tangle of charging cables, no bytes of data to transfer or tap.
But if you're sending yourself emails just to get a PDF or photo from one device to another, you might need a cloud drive somewhere.
If you've ever been out living your life and thought, "I really could use that file off my computer at home," there's a cloud with your name on it.
The question is where. And that depends on what you need. Most services are basically storage lockers for your stuff -- documents, photos, videos. But some offer smarter features as well.
Right now, a number of services are giving users free space, from about 2 gigabytes up to 7 gigabytes. You could go around and just collect free space, or study aspects such as the features, the terms of service and privacy policies,  or the service's reliability before committing.
Here's a quick look at some of what's out there.
Microsoft SkyDrive -- This one gives you 7 gigabytes of free storage. There are apps for Mac and PC, plus apps for Windows Phone, iOS  and through the OneNote app for Android, according to the site.
Google Drive -- You get 5 GB free, upgradable to a terabyte for $49.99 a month. In addition to allowing you to access your digital content, the service, unlike the others, also allows users to  collaboratively create and edit documents or video, and facilitates sharing. There's an Android app available now, with an iOS app in the works, the company said.
Something to note: The company, which also makes a good chunk of its money through wrapping some of your content in related ads, told me that it has no plans to do that with your content in Google Drive.
Amazon CloudDrive -- If you have or create an Amazon account, you get 5 GB for free. Your account is upgradable to one terabyte for $1,000 a year. The service lets you connect as many as eight devices, which can include mobile devices, different computers, and different browsers on the same computer. Any digital music you buy from Amazon is stored in that virtual locker but doesn't count against your quota.
SugarSync -- Here, you get 5 GB free. Some difference are that you can email files into your SugarSync storage and share folders with passwords or permissions, and you can send files of any size.  The service also keeps the previous five versions of all your documents (and photos) for either your reference or recovery. But only the most recent version counts toward the storage limit. It has apps for iOS, Android, BlackBerry, Windows Phone, Symbian and Kindle Fire, as well as an Outlook plugin.
DropBox -- This service gives you 2 GB to start, with the ability to boost your storage by "earning" up to 16 additional GB for referring others to the service. With the Pro account you can earn up to 16 GB additional space for referring friends, or upgrade to a Pro account with up to 100 GB and 32 GB for referrals starts at $10 a month. DropBox also keeps a snapshot of every change you make over the last 30 days without affecting your storage limit. You can share specific files or entire folders with friends, colleagues or family. On the mobile front, it has apps for iOS, Android and BlackBerry.
Again, with any of these services, it's important to read and understand what the shared responsibilities and commitments are in the legal contracts you're accepting by hitting "agree."

Microsoft head: How 'the cloud' could save Europe

Europe's struggling economies could find themselves thrown a lifeline from the "cloud," according to Microsoft International's president Jean-Philippe Courtois.

Cloud computing -- where businesses access computing services from a centralized provider, rather than owning their own infrastructure -- could be the key to kick-starting Europe's struggling economies, Courtois told CNN.

The shift in technology is the biggest in the past decade, and can transform the way businesses can operate, he added.

"You don't need to buy any more of [that] huge IT equipment, because you are actually using a service, like how you use electricity," he said.

Instead of investing capital in IT infrastructure, businesses can now opt for a cloud computing solution in which they pay as they go. "You just pay for the service you use when you need it," Courtois said.
We call it the new world of work, because people don't all necessarily have to come together physically
Jean-Philippe Courtois, president of Microsoft International

This removes technological barriers that can hold back the small- and medium-sized businesses which are at the heart of the European economy.

"We see many small businesses jump on the cloud bandwagon right now, as opposed to the large companies, because they can ... compete with some big global players using an incredible technology for only a few euros a month. That is making a profound change, particularly in countries where the recession is pretty tough," he said.

"If you are a very small company today, you can have a much more visible and aggressive presence."

Cloud computing also allows for savings to be made by enabling workers in different locations to collaborate online, reducing paper waste and travel costs.

"We call it the new world of work, because people don't all necessarily have to come together physically," Courtois said.

As well as presenting opportunities for businesses, Courtois said cloud technology could allow governments to become more competitive. "When I go back to Europe, visiting Spain -- a very depressed economy -- we see some of the opportunity... to help governments rationalize their budget."

"If you look at predictions [for] the European economy, it doesn't look great at this point. But I'm very convinced again that the work we do is an enabler of economic transformations."

Rackspace Starts the Great OpenStack Migration

It's inching out with a production-ready OpenStack cloud based on Essex

BY MAUREEN O'GARA

Rackspace, which wants to be the "Linux of the cloud" mimicking the now billion-dollar-a-year Red Hat, said Monday that it's "drawing a line in the sand against cloud providers." Everyone agrees it has Amazon, particularly, and VMware, to a certain extent, in mind. However, what'll probably end up happening is that Red Hat, which has a prominent part in the open source OpenStack project that Rackspace started, becomes the "Linux of the cloud" because it's got all the pieces, or thinks it does, but that's another story. Anyway, Rackspace is inching out with a production-ready OpenStack cloud based on Essex, the fifth and best-yet release of the open source cloud platform put in train by Rackspace and NASA in the summer of 2010.
Rackspace CEO Louis Napier told a New York Times blog that he expects to have all his customers, by then perhaps 200,000 businesses, on some or all of an OpenStack system by summer.
The fight is supposed to come down to a duel between the proprietary Amazon APIs, now lauded as the de facto standard of public clouds, and the still immature but open source CloudStack APIs.
Rackspace says come May 1, in roughly two weeks time, it will begin providing customers with default access to widgetry that it's now got in "limited availability."
That includes:
  • Cloud Servers, the Essex-based EC2-like compute piece of OpenStack, a k a Nova, accessible through the new programmable OpenStack API for switching between OpenStack clouds or a new intuitive control panel.
  • A built-from-the-ground-up graphical Control Panel that allows server tagging to discriminate between production and development servers so they can be controlled in concert and has multi-region capabilities.
Rackspace says "limited availability" means customers can sign up now, the widgetry is reportedly production workload-ready, there are unspecified SLAs, 24x7 support and regular billing. It seems it could take Rackspace a few months to ensure a smooth ramp-up but the move is supposed to be imperceptible.
Rackspace, which has already got the S3-like Cloud Files storage, a k a Swift, will move all of its public, private and hybrid cloud to this widgetry.
It's also got stuff in "early access" defined as "production workload-ready but with limited support available, no service commitments and no billing.
They include:
  • OpenStack Cloud Databases (Project Red Dwarf) with API access to a massively scalable, highly available MySQL database with redundant SAN storage for high performance and automated management. Figure on Microsoft SQL Server and other databases too but maybe not from Rackspace. Amazon, of course, has the MySQL-derived Relational Data Service (RDS).
  • Single-view Cloud Monitoring of the infrastructure and applications based on Rackspace's acquisition of Cloudkick.
Lastly it's got early versions of products in "preview" looking for testers namely:
  • OpenStack Cloud Block Storage, like Amazon's Elastic Block Storage (EBS), but offering either solid state or lower-cost disk storage.
  • Cloud Networks, software-defined virtual networks for managing logically abstracted network services programmatically. IDC says Rackspace's Cloud Networks is "going to eliminate some of the hesitation businesses have around cloud adoption." Thank you Cisco et al.
Here's what it all looks like:
Rudimentary pricing will remain the same starting at $0.015 cents an hour for a Linux virtual server with 10GB of disk space and 256MB of RAM and $0.08 an hour for Windows.
Rackspace still has to say what the database, storage and networking will ultimately run.
HP, a chief OpenStack acolyte, won't have a beta take on the Essex platform memorialized in its HP Cloud Services until May 10 with no estimates, as of last week, on when it could have a production public cloud.
There will be OpenStack fragmentation, observers prophecy. HP won't return all the distinguishing tweaks it makes to the community.
Rackspace says on its web site that it's got more than 170,000 businesses and 60% of the Fortune 100 as customers.

Amazon and Salesforce 'expected to join G-Cloud 2.0'

Government's new G-Cloud programme director Denise McDonagh says earlier legal fears have been ironed out.

Amazon and Salesforce are odds-on to join the UK government's G-Cloud and start serving civil servants with hosted computing, storage and ERP from May, reports the The Register.

The companies have been in talks to join G-Cloud, with government officials driving the programme having to reassure the firms' legal people on their obligations under the G-Cloud's terms and conditions.

The duo had passed on G-Cloud 1.0 which launched in February, over concerns about their legal obligations and responsibilities on things such as data audits.

Newly named G-Cloud leader Denise McDonagh revealed the development during a UKAuthority.com webcast on Thursday in response to The Register. McDonagh, who is also head of IT at the Home Office, was named on Friday as the successor to incumbent Chris Chant, who is retiring from the civil service after just 18 months in charge of G-Cloud.

Asked whether Amazon and Salesforce will be on the next version of G-Cloud, which currently gives hefty representation to existing suppliers of government IT like Microsoft, IBM and BT who have followed these two into cloud, McDonagh stopped short of saying she'd be disappointed if they didn't sign up, but continued: "I fully expect them to be on G-Cloud 2."

Commenting on the reason they hadn't joined up in February, she said: "There were some challenges. There was some language that gave their legal people a headache on the right to audit data. Since then we have spoken to the people at Amazon and Salesforce to explain the practicalities...therefore they are much more at ease with what we are asking them to do."

Amazon and Salesforce are synonymous with cloud computing. Amazon EC2 and S3 deliver hosted compute and storage at cut-throat prices while its APIs are soaking into business and consumer apps. Since spinning up in late 2006, Amazon has become the undisputed leader: with nearly 1tn data objects that sit in its silo and rapid expansion in the last 12 months. Everybody from OpenStack to Microsoft are racing to catch it.

Salesforce began in 1999 with a simple hosted customer relationship management (CRM) service. Through a combination of boisterous marketing by its chief executive Marc Benioff along with strategic development and acquisition, the company now counts among its offerings: a database-as-a-service; hosted websites; Amazon-style application hosting with Heroku; and crowd-sourcing and social networking apps for mobile and other devices which are used by Dell, Starbucks and others.

Both companies have created dedicated practices for the hosting of US government data and apps. The firms have managed this thanks to the fact that US government rules set a high bar on the physical location of servers hosting the nation's official data – and on who is allowed to come into contact with it.

The UK is less stringent, having an escalating level of rules based on sensitivity of the data and whether it falls under European data privacy rules or national law.

McDonagh reckoned the need to clarify the language of G-Cloud was among the lessons the government has learned building the next iteration of G-Cloud and Cloudstore. It had been necessary to simplify the wording and to reduce the number of acronyms to attract new suppliers and to explain the services, and to also cut the Ts and Cs from hundreds of pages to just 20.

Google - another tech name now synonymous with cloud - had no difficulty with the language of G-Cloud. As McDonagh pointed out, Google is already listed on the G-Cloud Cloudstore, right along with Microsoft and the others. Five of Google's products, APIs and services are listed including Apps for Business that features Gmail and calendar, Maps API Premier, and Chrome OS. Like so many vendors' services on G-Cloud, these are waiting to be "assured" while Google has not bothered to provide descriptions of what they actually are or do in all cases.

The government also plans more "buycamps" to explain G-Cloud and Cloudstore to its people and try to shift the culture of civil service IT procurement. Since February, McDonagh estimated that "20 to 30 things" had been sold though Cloudstore.

It was Salesforce's CEO Marc Benioff who last year berated the UK government for not going far enough on public cloud.

"The UK government is way behind in this, and way too much into virtualisation and the G-Cloud, which is basically just a big virtual machine that has not been executed well. Too much cost has gone into running too many data centres," Benioff is reported to have said in September, before G-Cloud floated.

In December, with a G-Cloud strategy document published and talk of an AppStore – which hasn't actually materialised – in the air, Benioff was patting the UK government on the head for coming around to his anti-VMware world view. The government's cloud was starting to gain "focus and momentum", he said.

The date for G-Cloud 2, meanwhile, might slip, McDonagh warned during the webcast. She noted while it's due at the beginning of May, she meant that "in a civil service" way.

Greenpeace's clean cloud push: Hey, they've got a point

The activists' "Clean our Cloud" campaign may have stumbled, but Greenpeace raised good questions about big tech companies and their influence on local clean-power generation.
by  
Greenpeace makes a splash in Seattle by hanging this sign off a building near Microsoft and Amazon offices.
Greenpeace makes a splash in Seattle by hanging this sign off a building near Microsoft and Amazon offices.
(Credit: Greenpeace)
Commentary In its trademark smashmouth style, Greenpeace this week took cloud computing companies to task for using dirty energy -- and then came under fire itself over its methods and assertions.
Whatever Greenpeace's shortcomings, though, its activists have a point.
In the latest event of its "Clean our Cloud" campaign, Greenpeace activists yesterday rappelled off a building near Amazon and Microsoft offices and attached a banner which reads "Amazon, Microsoft: How Clean is Your Cloud?"
Earlier, it released three videos that poke fun at Amazon, Apple, and Microsoft by showing workers shoveling coal into a smoky fire behind scenes of consumers using the companies' Web services. Sure, the cloud looks clean, the videos suggest. But do you know where the power that makes it possible comes from?
The campaign has been marred by an angry response from Apple, which claimed that Greenpeace greatly overestimated the power usage of its latest data center and discounted its reliance on renewable energy. Amazon, too, says Greenpeace's numbers are inaccurate. The environmental watchdog group continues to defend its analysis.