11. Private cloud – an idea seems right
Although witnessing the growth of businesses with unprecedented speed, many people remain skeptical about the potential of cloud computing. They said that this service does not suit for everyone. They said that big banks, insurance companies, government agencies and media companies cannot run their software on the cloud because they believe that the cloud is not secure as well as unreliable. Many people doubt about it work in places such as HP, Dell, IBM or Oracle. The giant of the technology are threatened by revolution of clouds. These companies sold expensive servers and hardware as well as software for data centers which cloud can be an alternative. In a few cases, the skeptics know that cloud is faster and all types of businesses will benefit from faster access speed of computing power. But traditional businesses need something a little different. Therefore, they need "private cloud" - a silly name, is sillier than “clouds". However, with traditional businesses, that is a correct idea: customers, instead of using Amazon, they launch the same service like Amazon on servers and inside their own data centers. Their engineers have quick access to the computing power of the cloud like Amazon's service. And this power will be more secure and more reliable. ... But not exactly At the present time, this idea is no longer great anymore. For more information about this, please ask Adam Jacob, CTO at Chef - a company in Seattle provides a convenient tool for the installation, operation and editing software automatically on dozens, hundreds, even thousands of computers. Chef's tools help to develop giant online Empire, Facebook, is the platform for Target, Nordstrom, Standard bank and many other businesses. So Jacob can look inside the business, and saw the cloud of private enterprises. So, he realizes it is not so great. Of course, those enterprises will continue operating a lot of parts in their own data centers. Because they have signed a long-term contract to lease those data centers. Even so, the year 2015 has become a watershed year for cloud computing - when people realize it is essential for the future. (97% unique) 12. Cloud computing is inevitable Pessimistic assessments about the future of private clouds are not only of Jacob. Mr. James Watters of Pivotal - a company specialized in search engine technology to modernize technology in traditional companies - said that over years, the private clouds have not yet gone far enough to provide real value and also have never really accepted. The clouds were too complicated for its value. He said nowadays, even traditional companies also operates about 35% of their activity on the cloud services like Amazon's. Even big banks of Wall Street are also turning up its tasks on the clouds. Mr. Watters said that we were watching them (top 10 large banks in the world) actually use public cloud technology for the first time by 2015. And they are the last ones. Research firm in Boston, Forrester called cloud computing- refers to the public cloud- a super growing market. In a recent report, they predict that the market for cloud services will reach a value of about 191 billion USD in 2020, 20% higher than the figure that they predicted a few years ago. The adoption of cloud computing in enterprises, where actually brought revenue, was becoming quicker - Forrester analyst, John Cymer said that it was a big conversion steps. The cloud has come. That is fate. Thanks to Amazon Web Services is not only secure but also reliable as private clouds. In fact, in many cases, AWS is more reliable and secure. A company like Amazon will be the home for the professional engineer specialized in those services, as well as problems arising from the services. They have had a decade of experience for the construction of this system. As Mr. Watters said, after a decade of establishing the assessment report, the cloud has become a "social standards" and is a "safety gamble." For years, there are still those who believe that a number of companies and government agencies need private clouds to fit with the rules on data control. But like other cloud service providers, Amazon has launched a solution to solve this problem, to make sure the certificates prescribed for its services. Moreover, Amazon also agreed to build separate cloud services which are only available to government agencies such as CIA. 100% 13. A trend is hard to miss Those dissidents cannot deny the power of the big idea about clouds. If anyone does not trust experts, take a look at Amazon's accounting balance sheet. In earlier this year, the first time the company announced the scale of cloud computing business. Amazon Web Services have earned 4.6 billion USD a year. This figure could rise to more than 7 billion dollars this year and are still continuing increasing. In other words, the faster growth rate is double the rest of Amazon. Thus, it is not surprised when other notable names such as Microsoft and Google, also are offering other choices like Amazon's cloud services. Microsoft has not said the scale of Azure, but if it combined with its online office service – an example of cloud computing - the sales of both parts will be equal to AWS. Meanwhile, Google believes that in someday, the revenue from their clouds will pass the array of its online advertisement revenue. Google realized that trend will navigate, and it is a trend hard to miss. While Amazon's sales increase, market hardware devices became more integrated. This October, Dell agreed to mergers to giant EMC storage devices. Previously, when businesses want to build systems that operate online, they have a few choices to buy a large number of servers and data-storage devices from companies like Dell or EMC. But now, they can use the services of Amazon, Google or Microsoft. So, Dell and EMC are trying to search for new solutions. It is true that such companies can also provide their own cloud services. And they did so yet this solution would likely eat into the hardware business array exist. Previously, HP has spent years to operate cloud services. However, after the affair between Dell-EMC announced, HP said it has closed its activities to focus on its company's private cloud. That's what they have to do, when it could not compete with cloud services of Amazon, Microsoft or Google. As you have seen, the private clouds may not be a great solution as its appearance. (100%) 14. Statistics show that the absolute power of Amazon in the war of cloud computing The financial statements at the beginning of this year showed services of Amazon Web Services (AWS) has become the giant of cloud computing, with a lot of profitable and fast-growing compared to other competitors. Compared with last year, sales of AWS has increased by 78% is an astonishing growth rate , to compare with the average growth of the other major providers whose rates reached 6% in the past year. This growth rate doubled Salesforce - offers the fastest growing PaaS cloud and even pass over the other big rivals of PaaS namely Microsoft, Oracle and SAP. Of course, AWS is a relatively new service. When it began operating in 2006, it usually has had a very fast growth. So it is difficult to compare equally with other companies on the list, most of them have already has a history of operating in a long time. But with an array of business, it has generated revenues up to $ 8 billion USD this year. The growth rate is unprecedented. And this makes opponents difficultly keep up that level of growth. The profit margin of AWS stands at 23%. Although it is only a bit higher in the average of the whole industry of cloud service, it is still far beyond in comparison with Salesforce, HP, or NetApp. Based on this growth, MKM Partners predict AWS can reach 38 billion USD in revenue in 2020, with prospects for profit might go up to 35%. This is a crazy figure when total sales of Oracle only reached 38 billion dollars in last year, and AWS is just a small part of Amazon Corporation (last year the revenue of all Group is 88 billion USD). Wall Street is rushing in stocks of Amazon since the first financial report of AWS announced in April of this year. Since then, the price of Amazon stock trading was 70% higher than before. The value of the group's capitalization also increased from $185 billion to more than 300 billion dollars. Recently, Deutsche Bank estimates if AWS is an independent company, the value of this segment can be up to 160 billion dollars. 100% 15. Cloud computing is the key for enterprises Enterprise is toward to cloud computing with more than half the number surveyed (52%) considered hybrid cloud computing and mobile platform for business are critical factors to their business operations. On December 2, VMware Corporation formally announced the results of the latest survey in vForum Business and emphasized the positive reviews for the hybrid cloud computing - consider this to be an important factor leading to growth, efficiency and innovation within the enterprise. Most of all participating businesses surveyed (87%) said they trust the cloud's role in promoting innovation, and more than half of businesses (52%) desired hybrid cloud computing applications in their IT infrastructure. 64 IT managers and business leaders participated in this survey by VMware implemented from September to November, 2015. They have shared views, their options on the essential factors in business as well as ICT priority in 2016 and the role of technology and innovation in promoting their business. Bringing new products and services to the market (37% of enterprises participated in the survey), optimization of resources (22%), and strengthen cooperation in the ecosystem of enterprises (29%)-are three essential elements are top priority in market. In addition, the survey also shows that enterprises wish the technology has the ability to extend (35%), flexibility (32%) and easily manage (25%). The findings of the survey of VMware also found that 37% enterprises involved admit virtualization environment is very safe. In that, 17% of them said they had cut spending for security. Business is focused on the issue of data privacy, particularly when deploying mobile business platform. In addition, VMware's survey also found that the extent of application in market – at the moment, businesses desire privacy which is a part of products and services that solution providers bring avoiding charges. 44% of businesses surveyed said the cost has always been one of top barriers for businesses that want to apply IT. Besides, 21 percent said the complexity of technology, 18% said problems of software management tools, and resource allocation are the other barrier - this shows the demand of businesses about application and management of its services which are easy. (100%) 16. Why would anyone want to join in "the cloud"? Cloud computing market continues to see unexpected results, beyond prediction. Evenwhen the booming of the startup has a signs of cooling in Silicon Valley. Three giant corporation of cloud computing are Amazon, Microsoft and Google that announced revenue growth in this business. In addition, the scale of the "cloud" is expanding rapidly, with the participation of many other competitors. So, those companies are selling what? And why a new 10-year-old company is still not a giant about technology like Amazon are put away the other giants such as Google or Microsoft? To support for websites and services, Amazon, Microsoft and Google have built the computing infrastructure with tons of equipment and infrastructure. Data centers of those companies are enormous and more effective to compare with the server room or data center on smaller companies. Not only meet their needs but also offer a part of their Center for software developers and other companies hire. Hence, companies, software developers anywhere in the world just use payment card can use computing machines with unlimited power. This means that their software can run in a larger scale, lower costs and better responsiveness capabilities without worrying about operation of a data center. In order to meet increasing demand from the world of software and applications, cloud computing market is attracting more and more players. Although attracting more and more players, the opponents are given the same basic service package for clients. Amazon, Microsoft, Google and most other cloud computing platforms providers are given two main basic services layer in the cloud: -IaaS (Infrastructure as a Service): the most basic service layer, allows customers to set up the server and hard drive virtual hosting in the data center. -PaaS (Platform as a Service): a package of tools and services to assist software developers build applications without worrying about server. The basic principles of the companies selling cloud computing services provide the "cloud" for the independent software developers as well as large companies. Anyone can join the game but when business expands, they will need the bigger "cloud". 100% unique 17. Amazon - simply a first mover Although a market with the participation of many big brand names like Amazon, Google, Microsoft, IBM, Oracle, ... and many other companies, look at market share statistics table on the IaaS market in first half of 2015 (Statista statistics firm), it can be seen that the ruler is Amazon with 7 billion USD in revenue this year from this segment. When Amazon Web Services first introduced in 2006, they had only a single service package of basic infrastructure: EC2 (Elastic Compute Cloud) for virtual servers. Afterward, they added Amazon S3 (Simple Storage Service) for file storage service. Initially, AWS is mainly for software developers to use as a savings solution to test application and operation of a simple website. But then, more and more customers including Netflix, Airbnb and Slack, small applications running on this platform has become the backbone of the booming growth of those businesses. Research specialist Dave Bartoletti said: "the rise of Amazon started thanks to the appeal of new application developers". That was the start of "rotation effect cycle" of Amazon. With the revenue from initial customers, Amazon can reinvest to add more new features for their services so it has a better experience, is able to runs bigger applications. Nowadays, big companies such as Comcast, Capital One and even CIA are also customers of AWS. They use at least one infrastructure of Amazon. With the advantage of the first mover, “rotation effect cycle" has lasted more than any anyone with proper orientation. Amazon has already had many advantages in terms of features and scales. The services of AWS have become the standard for cloud computing industry similar to the way that IBM set up for the data center. Ed Anderson, the research president of cloud services of Gartner stated: "everybody agrees that Amazon is safe choice." Today, AWS brings 7 billion USD but by 2020, it is estimated will reach in revenues up to 50 billion dollars. Gartner predicted that alone AWS can provides computing which is equal to 14 rivals. (97%) 18. Microsoft - a divine steering in cloud computing industry Many people argue that Microsoft is a follower when competing with Amazon. In fact, Microsoft had cloud platform in the middle of 2000, but Azure was only officially introduced in 2010 to compete with AWS. With Microsoft, the present of AWS directly impacts to their revenue. If customers switch to use Amazon's cloud services, they will not need the upgrade of Microsoft software package such as Microsoft Server, and SQL Server, which are used in data centers and brought the billion dollars in revenue. Microsoft has turned weakness into strength. Cloud computing is now one of the most powerful factors boosting revenue of the company. Although coming after Amazon, Microsoft also has its advantages and its own strengths .With experience in software packages for data center, when launched Azure in 2010, Microsoft gives customers a PaaS layer, service platform. After that, Microsoft recently began expanding to provide services on server and storage similar to Amazon. As a head of service infrastructure business of Microsoft, Satya Nadella navigated to the transformation of Azure, and he was selected for the position of CEO in 2014 partly thanks in that major success. Now, Azure is in Microsoft's top priorities, tied to these other products. The difference of Azure is not completely about the technology. That is based more on familiarity with customers. Azure is optimized for building Visual Studio based application-standard for programming on Windows for 15 years before. So the business can move their applications onto the cloud easier than its competitor, AWS. Currently, Azure is still going after AWS. Obviously, the advantage of first mover, Amazon is indisputable. Although it is not able to cross over to Amazon, Microsoft also has some positive signals when total revenue of cloud, including Azure and Office 365, reached 6.3 billion dollars this year, and the research firm, Gartner said that Azure has developed faster than AWS. Satya Nadella, Microsoft's CEO was confident that cloud computing is just the race between Amazon and Microsoft. (100%) 19. Google would be like Amazon Google is one of the few giant companies had great growing cloud platform soon. Because almost all of their services such as search engine, Gmail, Youtube with billions of hits each day are based on the company's data center. Just two years after Amazon launched AWS, Google also introduced Google App Engine - a platform similar to Microsoft's Azure, to help developers build applications on the cloud. Additionally, with a certain number of software developers, Google is also more trusted than Microsoft. Since its establishment, it showed the direction to use open source as well as sharing many its technology to the world. Vice President of technical infrastructure at Google, Urs Hölzle said that if engine app was an independent startup, it would be bright up in Silicon Valley. However, after launching, Google App Engine become fade if it is compared to development steps that AWS attained in the early days. Google has added features to compete and till 2013 it renamed the entire products into Google Cloud Platform. The company began to acquire the large clients such as Coca-Cola, General Mills and Best Buy. With the developers, Google has the advantages in trust. They believe in Google - a company with a tradition of open source and always devote themselves to the world. In addition, these products with extremely high popularity of Google have brought to the label image of it. Google said sufficient competition is on both price and technology. In fact, when compared with the terrible growth of Amazon and Microsoft, Google is still quite far away. In general, this trend is great for end users who are using infrastructure with cheaper price, more convenience. Similarly, it also makes Amazon or Google satisfy. However, to a company like Oracle, it is disastrous. In the end, the market will probably like the comment of Ed Anderson, Vice President of cloud computing of Gartner said that perhaps in the end, all of customers would go by Amazon or Microsoft." 97% 20. Miserable opponents of Amazon in Cloud Computing Industry IBM has invested heavily in cloud platform, IBM Bluemix and artificial intelligence IBM Watson, is designed to help software developers build applications more easily. But at the same time, the explosion of cloud trends has led IBM's traditional business decline significantly. IBM's strategy is development of hybrid cloud to allow the companies itself can operate a number of services and can outsource other services. The idea of hybrid cloud fits with government organizations and large companies like big banks, corporations which always want to keep some sensitive data on their own servers. However, the moment seems not appropriate for such a half solution, companies have realized if they outsource the whole of their computing needs, the experts will do better and save more. Oracle is a different opponent also joined in this market. Although the segment of the company is growing, but there is a downside. According to Craig Guarentee who had been responsible for client relationship for many years in Oracle, said: the largest client using cloud service of Oracle get from using the tactic of "steel fist of Larry Ellison". Though at present, this way is still giving clients for Oracle cloud platform, but it is unsustainable growth when many customers may willing to destroy the contract with Oracle, Most recently, when Amazon has launched a service allowing users to move their data on Oracle to AWS. HP also tries to compete in this market with HP platform, Helion but the platform has encountered many difficulties in operating on the necessary scale to actually become viable. Recently, HP has announced they will close the platform in January 2016. Rackspace Hosting compete with AWS from the year of 2000. But after several years, profit was not satisfied, they had announced it will return to provide service and support for Amazon's cloud platform. The opponents of Amazon not only start more slowly but also features they give to customers are not enough to create a "loop" as Amazon. Perhaps, some opponents have been successful in the short term when creating better data center, smarter management applications with existing infrastructure scale, but not enough. Thus, they are hard to maintain long-term competition. In addition, Amazon and Microsoft have constantly launched new features to attract more customers from other competitors. That also made those opponents miserable.