Principal Analyst Paul Teich attended the event which focused on machine learning and AI-enabled apps.
Tencent Cloud and Elastic’s New Joint Service
Tencent Cloud has partnered with Elastic to create the Tencent Elasticsearch Service.
US Azure Regions Approved for FedRAMP High Impact Level
Azure can now provide Azure public services that meet US Federal Risk and Authorization Management Program High Impact level.
Google Cloud and Informatica Wrangle Data
Google Cloud is joining forces with data-management company Informatica LLC to help businesses draw more value from their data.
See below for more in-depth analysis.
This week’s newsletter was delayed in observance of the Memorial Day holiday in the US.
Watch the Liftr Cloud Look Ahead, a weekly video series that presents recent cloud news with an eye toward the future. Check out this week’s video to stay current and prepare for what’s next in the cloud industry.
Liftr Cloud Index
The daily Liftr Cloud Index compares the competitive state of cloud service provider (CSP) infrastructure-as-a-service (IaaS) and platform-as-a-service (PaaS) products.
The overall Liftr Cloud Index for the week ending Friday 5/24/2019 was 104.5 (-0.1%), flat from the previous week. Overall index scores for the top 3 tracked CSPs were flat: Amazon AWS (108.9, +0.1%), Microsoft Azure (107.7, +0.2%), Google Cloud (83.7, -0.4%). Meanwhile, Alibaba Cloud’s overall index score (65.2, -2.4%) declined.
Alibaba Cloud’s (also known as “Aliyun”) overall Liftr Cloud Index score (65.2, -2.4%) dipped as Sentiment (89.4, -14.8%) returned to earlier levels following last week’s bump. Principal Analyst Paul Teich noted that Alibaba is saving its announcements for next month’s KubeCon event in Shanghai. Last year Alibaba started open sourced “dragonfly,” a peer-to-peer (p2p) based, high reliable, image distribution system at large scale, after getting performance bottlenecks from pulling Alibaba Group massively scaled application images from their datacenters.
Amazon Web Services’ (AWS) overall index score (108.9, +0.1%) was flat from the previous week. Sentiment (101.3, +1.3%) increased but was offset by a decrease to its Security score (107.2, -0.5%).
Google Cloud’s overall index score (83.7, -0.4%) was down fractionally amid lower Sentiment (102.4, -3.5%). Google Cloud’s announcement to partner with Informatica is a move for Google to push into the enterprise information-technology market. The partnership will combine Informatica’s data management and integration tools with Google Cloud services including data-storage platforms and market analytics tools.
Microsoft Azure’s overall index score (107.7, +0.2%) remained flat as Sentiment increased (102.2, +1.1%). Microsoft Azure’s major announcement was its US Azure Regional approval for FedRAMP High Impact Level. FedRAMP High was previously only available to customers using Azure Government. Azure told customers of itsplan to extend public cloud services and regions from FedRAMP Moderate to FedRAMP High Impact level last October. Reaching FedRAMP High means it is easier for more federal agencies to benefit from cost minimizing and robust security offerings from Microsoft Commercial Cloud.
Other Cloud News
KubeCon Europe 2019 consisted of many timely discussions centered around not only data science, but also the ability to deploy both training and inference at scale to support a wide range of AI-enabled apps. Other discussions at KubeCon focused around Containerized Network Functions, or CNFs, and Network Function Containerization, NFC, which are the container equivalents of Virtualized Network Functions and Network Function Virtualization. The event also brought several new product announcements such as Minikube and Kubeflow. You can find out more details from the event by watching our Liftr Cloud Look Ahead video.
Tencent Cloud’s newpartnership with Elastic is meant to benefit both companies’ users and customers in China and across the globe by providing them access to a full selection of products and solutions, as well as ensuring that every user and customer can leverage every aspect of Elastic’s efforts. Tencent Cloud will also be able to leverage Elastic’s Chinese localization for Kibana and other proprietary features like monitoring, Canvas and Elastic Maps. The release is planned for June.
Liftr Cloud Components Tracker
In case you missed it, we are excited to announce that Liftr Cloud Insights launched its Cloud Components Tracker. This new service identifies and catalogs the prices, configurations and components of all the infrastructure-as-a-service (IaaS) and bare metal compute instances deployed by tracked cloud service providers, region by region around the entire world.
To celebrate the launch of the Liftr Cloud Components Tracker we’ve made the first report available as a complimentary download. You may download the free May 2019 sample report here.
Liftr Cloud Insights is not a financial analyst firm. We provide strategic analysis of company earnings reports and associated end of quarter statements.
HPE did not have much to say about the cloud. It is focused on the remaining enterprise on prem server market, specifically high performance computing (HPC) and hyper converged infrastructure (HCI). Its gross margin expanded 2% to 32.2%. HPE reported 25% year-to-year growth for both HPC and HCI segments, with HCI contributing 0.2% of margin expansion and HPC 0.015%. While HPE also reported 78% growth in “composable cloud”, that segment only contributed 0.013% of margin expansion. For comparison, storage drove 0.6% of margin expansion. Together, storage, HPC, HCI, and composable cloud contributed 0.83% of margin growth. HPE indicated that supply chain efficiencies and improvements to manufacturing overhead drove the rest of the 2% expansion.
Lenovo seems to be competing directly with HPE for on prem servers and HPC, reporting that its data center profitability improved 11% year-to-year. Lenovo also noted that it passed HPE this year to become the top provider of infrastructure to supercomputer installations on the TOP500 list. However, Lenovo also reported a strong business in supplying cloud data center infrastructure to “hyperscalers.” In its home country of China, Lenovo reported that its cloud business grew over 50% in Q1 year-over-year, and that its gross margin improved by 13%. Lenovo credits its success with building in-house design and manufacturing capability to better compete with contract manufacturers and ODMs.
Liftr Cloud Insights Principal Analyst Paul Teich was onstage at the event with AI executives from around the cloud industry.
· Moderating a discussion panel featuring Nigel Toon, CEO and co-founder of Graphcore, Mike Henry, co-founder and CEO of AI chip startup Mythic, Jin Kim, Chief Data Science Officer at Wave Computing, and Gaurav Singh, VP at Xilinx.
· Interviewing Clement Farabet about building AI infrastructure at Twitter and the hardware evolution leading to his current role as VP of AI Infrastructure at Nvidia.
Alibaba Cloud Summit Singapore Suntec, Singapore May 30, 2019
Attendees of the Alibaba Cloud Summit Singapore 2019 will learn about Alibaba Group’s best practices and its 10-year experience. The summit will include keynotes, executive engagement sessions and product launches. Although we won’t be in attendance, we’ll be monitoring news and announcements closely.
KubeCon + CloudNativeCon China Shanghai, China June 25-26, 2019
Liftr Cloud Insights Principal Analyst Paul Teich will be at the Cloud Native Computing Foundation’s KubeCon + CloudNativeCon China conference in Shanghai, China. The event is targeted at cloud service providers, open source cloud operations framework developers and cloud applications developers. Contact firstname.lastname@example.org to schedule a meeting with Paul during the event.
AWS re:Inforce Security Conference Boston, MA June 25-26, 2019
Attendees of AWS re:Inforce will experience two days of security, identity and compliance learning and community building. Although we won’t be in attendance, we’ll be monitoring news and announcements intently.
Have a great week!
– Paul R. Teich, Principal Analyst, and your Liftr Cloud Insights team
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