MGI Research

Sunday, Jul 21st

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Cloud Computing

Cloud Computing is proving to be both a threat and an opportunity for technology vendors and CIOs. MGI's coverage of cloud computing  dispels the myths surrounding cloud computing and highlights the benefits, risks and impact on IT spending. 

Current key issues covered by MGI Research in Cloud Computing include, but are not limited to:

  • Who are the winners and losers of cloud computing?
  • What are the economics of cloud computing?
  • What new business models are enabled by the cloud?
  • What are the trade-offs of the various cloud computing architectures?
  • What role will frameworks play in adoption of cloud computing?
  • What are the limitations of cloud computing – is it a zero-sum game for the IT industry?
Research coverage focuses on cloud computing trends for infrastructure, platform, application and tool providers. Companies covered include  Rackspace,, Google, Akamai and many others - established and emerging, public and private. 

Defining PaaS - 20 Questions with CEO of Apprenda Sinclair Schuller

Platform as a Service (“PaaS”) is steadily gaining momentum. Yet, the definition and economic rationale for PaaS are still evolving. Users still struggle with issues such as understanding PaaS benefits, different flavors of PaaS and the appropriate sweet spots where PaaS is a must-have ingredient. To explore some of these questions, we have invited Apprenda CEO Sinclair Schuller to join us for 20 Questions – an MGI Research Interview Series with leading technology industry executives, innovators, and investors. During this session, Sinclair shared his perspective on a broad set of PaaS issues and talked about what it takes to be successful as a supplier of PaaS tools and technologies.

Secure Cloud - 20 Questions with FireHost CEO Chris Drake

Cloud Computing services such as Infrastructure-as-a-Service are increasingly viewed by buyers and suppliers as approaching commodity pricing. At the same time, a number of vendors are viewing the cloud infrastructure opportunity creatively with a  particular emphasis on vertical industries or features.  As discussed in our earlier MGI Research report - "Trusted Cloud - Market Size Estimates", - the requirement for stronger levels of security is opening new opportunities for cloud infrastructure suppliers whose offerings integrate security into every aspect of their service.  Headquartered in Dallas, Texas, FireHost is an emerging provider of secure cloud infrastructure.  In a 20 Questions session, FireHost CEO Chris Drake shares his views on the role security plays in cloud computing and the opportunities for companies such as Firehost that are focused on Secure Cloud.

Attachments: (For Subscribers)
Download this file (20 Questions with Firehost CEO Chris Drake.pdf)20 Questions with Firehost CEO Chris Drake.pdf

Can A Federated Model Disrupt the Cloud Infrastructure Market?

Federated CloudIn a federated cloud computing model, various cloud providers interconnect their networks to create a large virtual cloud and to share revenues based on where the compute load has originated and where it is ultimately processed. This model enables certain workload classes to quickly assemble computing pools that are not typically available from any single cloud IAAS provider. Even though there are still many unanswered security, management and availability issues, in theory, this model could have a disruptive impact on IAAS market domination by vendors such as Amazon and Rackspace. By offering software tools that facilitate the creation and management of a cloud infrastructure, London, UK-based OnApp provides tools for hosting companies and data center owners to sell compute capacity and CDN services on a global scale.  This capability allows almost any company to sell their excess compute capacity into a CDN pool and generate revenue for those idle server and network resources. In an in-depth 20 Questions session, the founder and CEO  of onApp -  Ditlev Bredahl, shares his views on the potential for market disruption within cloud computing infrastructure, on how a federated model can help the challengers compete more effectively with cloud market leaders, on market positions of Amazon, Rackspace and Akamai, and outlines his vision for when “the cloud is no longer the cloud”. 

Excerpt from the report:

".. Today, the CDN market is really only ten players, where Akamai represents almost 50% of the market, and the tenth player sits on less than one percent of the market. To deploy a CDN, you need to have data centers worldwide.  This is a seemingly massive barrier to entry.  By using the federative approach service providers can build their own CDN based on their own infrastructure plus the infrastructure of their customers and the broader base of federation members..."

" ... Hosting providers and their customers can join a federation, and access unused capacity that is part of the broader federated ecosystem.  Nearly every service provider out there has servers not being used, (but still paid for), services already being powered up, but not fully utilized.  They have plenty of un-monetized infrastructure sitting idle, waiting for someone to buy it.  What we are doing  is enabling our clients to put that idle infrastructure on the marketplace and allowing to build a master CDN by taking that un-monetized infrastructure sitting worldwide tying it into a large worldwide virtual network and selling that as a fully fledged CDN service directly competing with the Akamai’s and Limelight’s out there..."

Trusted Cloud - Market Size Estimates

Impact Scenario for Trusted Cloud AdoptionWe estimate the size of the Trusted Cloud services market at slightly over $2 Billion in 2016 up from less than $500 Million in 2012. We see it as a specialized, high-growth opportunity significantly shaped by demand for cloud computing services from US federal, state and local government.

In a cloud computing context, Information Security is consistently one of the top concerns of business and IT executives. Despite vendor assurances of tight security controls within the cloud and statistically a relatively low rate of security incidents, most potential and actual cloud services buyers see the cloud as essentially a black box and its security as something they are asked to take on faith. Cloud suppliers like Amazon Web Services, Rackspace, and others point out the miniscule current number of service disruptions due to security issues and the large ongoing investment into increased security controls. Many cloud suppliers have gone to great lengths to hire top security talent and obtain security certifications from government and industry bodies. Still, there continues to be a lingering fear and doubt about how secure the digital assets placed into the cloud are. Is security holding back the rate of cloud adoption? Would the adoption accelerate dramatically if the cloud was perceived to be more secure? What do vendors have to do to make users feel that the cloud can be trusted? Would customers be willing to pay extra for an additional layer of security and does that translate into a business opportunity?  In this research report we assess the probability for at a potential new market that we term as Certified Trusted Cloud or CTC, address its evolution scenarios and estimate its market size. The report is focused on the US, non-consumer sector.

Attachments: (For Subscribers)
Download this file (MGI Research - Trusted Cloud Market Study January 2012.pdf)Trusted Cloud Analysis and Market Size Forecast 2012

Deploying Enterprise Apps to the Cloud - 20 Questions with the CEO of XebiaLabs

In this research report we take a closer look at the challenges of deploying enterprise applications to the Cloud. Virtualization and Cloud Computing are transforming requirements for infrastructure and application management tools. Management automation problems that were seemingly solved ten to fifteen years ago are re-appearing again in completely new contexts and challenge IT organizations and incumbent management tools vendors. These discontinuities in the market create opportunities for startups such as XebiaLabs; - a firm focused on application release automation tools for virtualized and cloud-based environments. As part of the “20 Questions,” an MGI Research Interview Series with leading technology industry thinkers, doers, investors and observers, Igor Stenmark recently interviewed the CEO and VP of Product Management of XebiaLabs, - Coert Baart and Andrew Phillips.

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