Friday 9 October 2015

Structure News: Europe says enough, Dell-EMC says how about it, Amazon says it's the future

STRUCTURE EVENTS Newsletter
 
Where Amazon Is Coming For Your Workloads
October 9th, 2015 / by Tom Krazit
This week, we'll talk about Europe's new data standards, a possible Dell-EMC merger, and Amazon's big week.
STRUCTURE NEWS
STRUCTURE REWIND: AMAZON CTO WERNER VOGELS
Vinod KhoslaAs Amazon's Re:Invent winds down (more on that in a bit), we decided to take a look back to a year ago at Structure, when Amazon CTO Werner Vogels took the stage with Gigaom founder Om Malik to discuss international clouds and the tricky transition for older companies that want to invest in the cloud but have a ton of legacy apps to manage. A lot of his points ring true a year later, so check out that interesting interview.

Remember, Structure 2015 takes place November 18th and 19th in San Francisco. The early-bird price ends today! Buy your tickets here.
INDUSTRY NEWS
COURT 'DROPS BOMB' ON US COMPANIES
For fifteen years, U.S. internet companies have been allowed to operate in Europe thanks to a "safe harbor" agreement that allowed companies to declare themselves compliant with European data-protection standards. Politico reports that arrangement is now in disarray after a court struck down the agreement, which is causing all kinds of internet companies to scramble, although Microsoft, for one, reassured Azure and Office 365 customers that it had a solution already in place.

IBM ACQUIRES CLEVERSAFE TO SCALE ITS PUBLIC CLOUD INTO THE EXABYTES

IBM continues to buy, rather than build, the components it needs to catch up to public cloud providers. SiliconAngle notes that it picked up Cleversafe this week for what was likely several hundred million dollars in order to give its SoftLayer cloud service a pretty compelling storage product.

WAR STORIES: FIVE YEARS OF BUILDING INSTAGRAM

Structure 2015 speaker Mike Krieger posted an interesting recap of the past five years of Instagram, focusing on the scaling and engineering challenges behind one of the world's most popular apps. I was particularly struck by the challenges Krieger and his team faced migrating Instagram into Amazon Web Services once its growth became viral, and then out of AWS after it was acquired by Facebook.

DELL IS IN TALKS WITH EMC OVER POSSIBLE MERGER

We've been waiting for some news out of the EMC Federation for a few months now, as the group tries to figure out the future of EMC, VMware, and Pivotal, but the Wall Street Journal brought news (subscription required) of an interesting development this week: Dell is considering the acquisition of EMC (or at least some of its assets) that it would finance in part by spinning off all or some of VMware. Michael Dell would lead the new organization, and the deal sent EMC's stock up nearly five percent at the close of trading Thursday.

TECH UNICORN GETS COLD SHOULDER AS PURE STORAGE DROPS BELOW IPO PRICE

One company that would face upgraded competition from a Dell-EMC deal would be Pure Storage, which had the unfortunate timing of going public this week as the rumors swirled. Shares in the company opened below its IPO price, Forbes reported, and they closed Thursday at $15.93, still below the IPO price of $17, as investors appeared lukewarm about the prospects of the flash storage company.

FACEBOOK, BIG SWITCH TEAM ON OPEN SWITCH STACK

We've long been big fans of the Open Compute project and the amount of open-source innovation it has brought to datacenter hardware, and so a partnership between Facebook and Big Switch to introduce their own open-source network operating system called OpenNetLinux is worth noting. The Platform takes a closer look at the announcement, which follows a similar imitative from HP.
 
 
BIG PICTURE
Vinod KhoslaAmazon's big week in the desert brought together the cloud community to hear the latest from the public cloud giant. Amazon Web Services continues to be the gold standard in enterprise public cloud, and has increasingly become one of the more lucrative pieces of Amazon's whole business: the company revealed that Amazon Web Services is on track to do $7 billion in revenue this year and has a million active customers.

There was a ton of coverage of the event, but we'll single out stalwarts like Fortune, Venturebeat, Recode, and Bloomberg for their various takes on the week. You'd also be remiss not to scroll back through the Twitter timeline of Structure 2015 speaker Adrian Cockcroft for a comprehensive rapid-fire summary of the week's events.

One thing in particular stood out to me after following the events, which isn't an entirely new notion but nonetheless grows stronger each year: the public cloud is such an established concept that features and services, rather than evangelism, are the focus of cloud companies. Amazon's Andy Jassy (pictured above) tried to claim that Re:Invent isn't a sales and marketing conference, but rather a cloud education conference, but that rings a little hollow.

That's because cloud companies like AWS are going up-market, trying to woo bigger and bigger enterprise IT departments over to the public cloud by providing them with the same services that legacy IT vendors provided around on-premises software. Jassy even had to defend the company for not cutting prices -- a staple of past Re:Invents -- during the week.

Amazon remains the class of this industry, which has so much growth ahead of it, despite strong competition from Microsoft (which is betting much of its company on the cloud) and Google (which has the resources and infrastructure to be a major player). Amazon might have even gained share over the past year, depending on how you slice it.

"Our goal is to have every company run all of their businesses and all of their applications on top of our technology infrastructure platform," Jassy told CNBC this week. While 100 percent market share is perhaps a little ambitious, Amazon made it quite clear this week that it sees no limit to the reach of cloud computing as the engine of the 21st century.
 
 
 
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