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February 14, 2011
Volume XXXIV, Issue 1

IDC: Cloud Computing on Track to Become $30 Billion Industry

Excerpted from Worcester Business Journal Report by Brandon Butler

In the next four years, public information technology (IT) cloud services will grow by more than 20% to become a $30 billion industry, International Data Corporation (IDC) predicts.

Professional services businesses mark the "sweet spot" for public IT cloud services, IDC said, because of the many midsized companies that are information-dependent.  

Meanwhile, the services and distribution sectors, which include retail, wholesale, and transportation services, currently make up the largest share of public IT cloud services at $3 billion and that sector is expected to grow to $8.5 billion by 2014.

Public IT cloud services, unlike private IT cloud services, are browser-based and are not as secure as private, dedicated cloud infrastructures.

DCIA Supports paidContent 2011 - The Next Decade in Digital

Since 2002, paidContent has brought the digital media community some of the most thought-provoking events in the industry. This March, the organization will look at the state of paid content with its namesake conference, paidContent 2011 - The Next Decade in Digital. 

This full-day conference will take place at The Times Center in New York, NY and the DCIA is pleased to serve as media partner.

As its name suggests, paidContent is all about paid content and its signature conference will cover the subject from every relevant angle.

Last year, senior business executives from across the content industry came together for paidContent 2010, eager to share possible solutions and find new ones for making digital content pay without pinning it all on advertising.

Now the story continues at paidContent 2011, on March 3rd.

The event will gather bold-faced names, senior executives, and decision makers to engage in forward-looking roundtable discussions and news-breaking Q&As. The ever-growing speaker list includes Nick Denton, founder of Gawker, Dan Rose, VP of Partnerships & Platform Marketing at Facebook and Lauren Zalaznick, Chairman of NBC Universal Entertainment & Digital Networks.

DCINFO readers receive a 15% discount on registration fees by using code DCIA2011. Register now!

Pandora to Raise as Much as $100 Million in IPO

Excerpted from MarketWatch Report by Alistair Barr

Pandora Media is planning an initial public offering (IPO) that may raise as much as $100 million for the Internet-radio company, according to a regulatory filing late Friday.

Pandora said it generated $90 million in revenue during the nine months ending October 31st; it had a net loss of $328,000 in the period.  

The net loss applicable to common stockholders of the company was $7.1 million, according to the filing.

Pandora said in a statement that the number of shares to be offered and the price range for IPO had not yet been determined. However, the company estimated the offering  at $100 million for the purposes of paying fees to register its shares.

Report from CEO Marty Lafferty

Photo of CEO Marty LaffertyLast week, we announced that the DCIA will present CONTENT IN THE CLOUD at NAB on Monday April 11th at the Las Vegas Convention Center (LVCC) in Las Vegas, NV as part of the NAB Show.

We provided DCINFO readers with a first look at the agenda for what promises to be our most valuable and stimulating conference to date. 

And as promised, in advance of our press announcement, today we'll share our speaker line-up with you, featuring industry experts from around the world.

We urge you to make plans now to attend the NAB Show so that you'll be able to explore this rapidly emerging technology that promises to expand the possibilities for realizing the full potential of digital post-production and distribution.

If IPTV or online delivery is in your current or future operating plans, you won't want to miss these eight keynotes and four panel discussions focused on cloud-delivered content and its impact on consumers, television manufacturers, telecom industries, and the media.

Anne-Carole Nourisson, VP of Licensing, Vivendi Mobile Entertainment (VME), will offer our opening keynote address, "Vision for Content in the Cloud." VME is a wholly owned subsidiary of the Vivendi Group, created 3 years ago, and now operating a direct-to-consumer (D2C) digital cloud entertainment service, by subscription, in France and Germany. Under the brand name zaoza, VME provides a selection of music, games, films, and TV series to its subscribers by means of cloud-based delivery.

Anne-Carole's professional background is in international marketing and sales for major brands, including media and entertainment companies, in the off-, on-line, and mobile worlds. She started her marketing career at Unilever, then joined Seagram for Tropicana European HQ division, then UK & Ireland marketing manager before moving into the entertainment industry as Marketing Director of 20th Century Fox Home Entertainment France. She joined the Internet division of Vivendi Universal in 2000.

Jostein Svendsen, CEO, Creaza Videocloud will present our second keynote, "Cloud Vision vs. Technical Reality." Creaza will launch its new cloud-based video service at NAB for the mass market, and for all media sectors. During CONTENT IN THE CLOUD, Jostein will conduct a live demonstration where participants can record and upload videos to a private Videocloud. Jostein will then edit and publish live to the cloud in front of the audience - all of this from within a standard web browser.

Jostein is a true entrepreneur, having established several successful information technology (IT) companies in the last 15 years. He has an extensive background within the high-tech industry in Scandinavia, the US, UK, and UAE. He was the founder of two of Norway's leading multimedia and Internet companies - which later had successful listings on the Stockholm stock market. One of them grew to become one of the largest Internet development agencies with 2,000 employees worldwide.

Our first panel discussion, "The Impact on Consumers of Implementing Cloud Computing for Media Delivery" will feature Stefan Bewley, Director, Altman Vilandrie & Company; Kshitij Kumar, Mobile Czar, Concurrent; Mike West, CTO, GenosTV; Mike Lewis, Founder, Kapost; Tom Mulally, Principal Analyst, Numagic; Guillermo Chialvo, Gerente de Tecnologia, Radio Mitre; Bill Kallman, President & CEO, Scayl; and Jonathan Sasse, SVP of Sales & Marketing, Slacker.

Our third keynote, "Benefits of Cloud-Delivered Content for Consumers: Ubiquity, Cost, Portability Improvements," will be offered by Claude Tolbert, VP, Business Development, BitTorrent.

Claude brings a record of strategy creation and implementation from his work with The Boston Consulting Group and spent nearly a decade in telecommunications and technology with Covad Communications. His responsibilities have included negotiating strategic distribution agreements, M&A transactions, and product development partnerships. Claude received his Bachelor's Degree from Harvard College and earned an MBA from the Stanford Graduate School of Business.

Our fourth keynote, "Drawbacks of Cloud-Delivered Content for Consumers: Privacy, Reliability, Security Issues," will be presented by Jim Burger, Member, Dow Lohnes.

Jim specializes in the representation of technology companies on intellectual property (IP), communications, and government policy matters. He joined the firm's Media, Information and Technologies Group in January, 1997. Before Dow Lohnes, Jim was a Senior Director in Apple Computer's Law Department. He has worked extensively on legal and policy issues arising from the confluence of digital technology, communications, IP protection and government regulation, particularly as affecting digital content, DTV, wireless data, and the Internet.

Our second panel discussion, "The Impact of Cloud Computing on the Consumer Electronics and Telecommunications Industries," will feature Stephen Condon, Director of Market Development, AT&T; Dan Holden, Chief Scientist, Comcast Media Center; Sean Barger, CEO, Equilibrium; Dan Schnapp, Chair, New Media, Ent. & Tech., Hughes Hubbard; Keith Collins, CTO, Neusoft; Ian Donahue, Co-Founder, RedThorne Media; Mark Vrieling, CEO, ScreenPlay; and Kurt Smith, VP, Sales, Verizon Digital Media Services.

Our fifth keynote, "Benefits of Cloud-Delivered Content to the Consumer Electronics and Telecommunications Industries: Advanced Capabilities, New Features, Cost Advantages," will be offered by Jonathan King, SVP, Business Development, Joyent.

Jonathan leads teams responsible for service provider sales and hardware, software, and system integration alliances. Before Joyent, he was a Client Partner Director with Verizon Business Global Solutions; and before that, led Alliance Development for Totality, a company acquired by Verizon. Jonathan holds a JD from Loyola University Chicago School of Law and is pursuing an LLM in Intellectual Property Law from Washington University.

Our sixth keynote, "Drawbacks of Cloud-Delivered Content for Consumer Electronics and Telecommunications Industries: Infrastructure, Disruption, Accountability Issues," will be presented by James Capps, VP, Systems Engineering & Integrated Technology, Comcast.

Jim oversees a department of over 50 employees and contractors responsible for the innovation and development of products and services for the Comcast Media Center (CMC), its parent company Comcast, and its customers, who include cable MSOs, television programming networks, and other members of the content development and distribution community. His department's most recent activities include developing a Headend Management System (HMS) that enables affiliates to offer advanced services using their existing NAS equipment.

Our third panel, "The Impact on Broadcasters of Cloud Computing Deployment," will feature Scott Ryan, CEO, Asankya; Les Ottolenghi, CEO & Founder, Fuzebox; Alexander Marquez, Director, Intel Capital; Devon Copley, Managing Director, Kaltura; Alex Castro, VP & GM, Video Platform Solutions, Limelight Networks; Guy de Beer, CEO, Playcast; David Dudas, VP of Video Solutions, Sorenson Media; and AJ McGowan, CTO, Unicorn Media.

Our seventh keynote, "Benefits of Cloud-Delivered Content to Broadcasters: Efficiency, Control, Flexibility Improvements," will be offered by John Griffin, Director of Connected Electronics, Dolby Laboratories.

As leader of Dolby's connected electronics business, John oversees the management and marketing of Dolby's consumer electronics (CE) product portfolio. He works with a wide range of Dolby customers and partners on home theatre, online, Blu-ray, and connected entertainment products and services. Previously, John served as Dolby's Director of Games marketing. John earned a bachelor's degree in philosophy from the University of Illinois at Urbana-Champaign.

Our eighth keynote, "Drawbacks of Cloud-Delivered Content to Broadcasters: Interoperability, Data Security, Quality of Service (QoS)," will be presented by Scott Brown, GM US, VP Strategic Relations, Octoshape.

Scott joined Octoshape in January of 2009. Prior to this, he ran Content Delivery Services and Media Technology Strategy for Turner Broadcasting. Scott spent 11 years at Turner Broadcasting and AOL focused on media infrastructure development, and high-scale media delivery on the Internet. He holds several streaming media technology patents, and has architected streaming solutions for the largest events on the Internet to date including the coverage of the 2009 Presidential Inauguration with 1.34 MM simultaneous users.

Our closing panel discussion, "The Years Ahead for Cloud Computing Deployment in the Television and Motion Picture Industries," will feature Christopher Levy, CEO, BuyDRM; Owen DeLong, IPv6 Evangelist. Hurricane Electric; Fabian Gordon, CTO, Ignite Technologies; Randy Simpson, Director, Institute for Defense Analyses; Chuck Stormon, VP, Strategic Accounts, PacketExchange; Devon Ferreira, Co-Founder, Patriot Digital; and Jody Stark, Partner - Media & Entertainment, Verizon Business; Sean Jennings, VP, Solutions Architecture, Virtustream.

If you haven't already done so, please register now for the NAB Show so you'll be able to attend CONTENT IN THE CLOUD. Share wisely, and take care.

Cloud Computing Set to Reach a Tipping Point 

Excerpted from Rackspace Report

The steady rise in popularity of cloud computing means the technology is about to reach a tipping point as more businesses realize the huge benefits it has to offer.

According to new research from cloud computing research specialist the International Data Corporation (IDC), many IT customers are expecting to manage a varied host of cloud computing technologies in the near future.

And, it appears that this flexibility, which allows businesses to mix a variety of private, public and hybrid cloud computing solutions, is only adding to the technologies popularity.

IDC believes that over the course of the next few years, the worldwide cloud systems management software market is set to undergo massive growth.

The rapid growth will be due to the increased need for automation and integrated system management solutions that can optimize the performance of relatively disparate technologies.

At the moment, debate over whether to use public or private cloud computing technologies is a major oversimplification of the situation. According to IDC, firms are not will to part company with legacy equipment until they have seen a concrete return on investment.

Therefore, cloud systems management software will be required to make increasingly complex infrastructure manageable - hence the expected growth in the marketplace.

IDC believes that the differentiator between various cloud technology providers will be their ability to manage these hybrid solutions efficiently and reliably.

Mary Johnston Turner, Research Director of Enterprise System Management Software at IDC, said, "Demand for cloud systems management software will ramp up as cloud adoption hits a tipping point."

She added, "As customers begin to recognize the economic and performance benefits of cloud technologies, there will be a significant shift from targeted, pilot implementations to broader production uses.

"As cloud adoption reaches a tipping point and becomes mainstream, we expect this market to experience a robust 45.5 per cent compound annual growth rate between 2010 and 2015."

But the mix of cloud computing solutions isn't expected to be evenly spread as more small and medium-sized enterprises begin to exploit the technology.

According to IDC, last year, 70% of the world's cloud computing management software was deployed on private infrastructure. This figure is likely to change, however, when major issues - such as privacy and security - are dealt with by public clouding computing providers.

Recently, a new study from Infonetics Research claimed that one of the major concerns for businesses deploying cloud computing technologies is security.

The organization claims that data leakage and outright theft weighs heavy on many chief information officers minds and, as a result, many companies are attempting to plan ahead when it comes to security solutions for cloud computing.

This means that many organizations are already looking at the potential threat of increased smart-phone and social networking use in the world of business.

But the relative complexity of securing the cloud means that many firms are unsure about which provider to go to - with many expected to forego big brand name security specialists in favor of smaller providers who can offer much more tailored solutions.

Infonetics Research said, "31% of the enterprises interviewed said they weren't sure from which vendor they would buy security clients for smart-phones, and 16% said they plan to buy from a different vendor than their chosen desktop and laptop client security vendor."

Jeff Wilson, Infonetics Research's Principal Analyst for security, noted that the proliferation of hybrid cloud computing was the reason that businesses were starting to think differently about data protection and network security.

Neustar Intelligent Cloud Service Released to Market

"In the spirit of innovation and solving the real-world challenges for our customers, we are bringing the Neustar Intelligent Cloud to market, which will change the mobile service creation paradigm. It will no longer be necessary to structure multiple agreements or develop services in disparate network environments," said Steve Edwards, Senior Vice President, Carrier Services, for Neustar.

"The mobile marketplace is changing rapidly and Neustar is helping operators, content providers, developers, and enterprises capitalize on these strategic opportunities - with one connection, one agreement and one provider."

Neustar, a provider of solutions and directory services to enable trusted communication across networks, on Thursday unveiled the Neustar Intelligent Cloud service that will provide a single, secure, and simplified connection point between content providers, application developers, solution providers, and mobile operators. This new service will streamline the communications, network features, and billing across operators.

As a hosted service, the Neustar Intelligent Cloud will allow scale and reduce the complexity of delivering the right message at the right time, every time. Already a trusted service enabler to the communications industry, Neustar will collaborate with operators to provide a "Web 2.0-like" solution that will enable operators to securely publish standard application programming interfaces (APIs) and other information to the mobile cloud.

"With billions of mobile subscribers and connected devices, the mobile ecosystem is growing rapidly and has reached the scale where it is no longer possible to create operator specific services," said Elisabeth Rainge, Director, IDC. "The Neustar Intelligent Cloud is an efficient and sophisticated approach to an industry challenge that has been constraining innovation and revenue models. Neustar's experience in meeting the real world demands of large, complicated technology networks promises to bring real value to its customers."

VMware Rolls-Out vCloud Connector 

Excerpted from CTO Edge Report by Mike Vizard 

VMware this week rolled-out VMware vCloud Connector, a free plug-in for VMware vSphere that extends the management console out to cloud computing services running VMware virtual machines.

The VMware Cloud Connector is a critical element of any hybrid cloud computing scenario under which VMware administrators, through a single pane of glass, can manage virtual machines on premise and in the cloud, says Joe Andrews, director of product marketing for VMware vCloud services.

VMware has also announced that cloud computing services based on VMware are formally available. The three providers of those services are Blue Lock and Colt, which are

in production, and Verizon, which is beta testing its service.

Andrews says the services leverage VMware vCloud Datacenter technologies to reduce "noisy neighbor" issues in the cloud that can sometimes affect performance across a multi-tenant architecture. That approach helps cloud computing providers make sure they are running VMware virtual machines in isolation for each individual customer, says Andrews.

VMware vCloud Connector is scheduled to be available before the end of March.

Rackspace Hosting Racks up Best Quarter Yet

Excerpted from San Antonio Express Report by Valentino Lucio

San Antonio, TX based Rackspace Hosting reported that its profit jumped nearly 50% in the fourth quarter of 2010 compared with the same quarter a year earlier, the strongest showing since the company went public in 2008.

Profit at the hosting and cloud computing company jumped to $13.5 million, or 10 cents a share, compared with profit of more than $9 million, or 7 cents a share, for the same period in 2009.

The results matched analysts' estimates, as polled by Bloomberg, who anticipated the company would earn 10 cents a share.

Revenue also grew during that time to $214.7 million, a 26.7 percent increase from the $169.5 million reported during the same period in 2009.

Lanham Napier, President and CEO, said the financial success stems from the company's ability to grow faster than it did in 2009, while maintaining margins and investing in the business. Napier mentioned several key moves the company made during 2010 that helped it grow, including the launch of Windows Cloud servers, which accounts for about 30 percent of all new cloud server sales.

"While we are pleased that we reached our goals for 2010, we have more ambitious plans for 2011 designed to help us succeed well into the future," Napier said during a conference call. "(This year) marks Rackspace's 13th anniversary and during the year we anticipate crossing a very important milestone: $1 billion of run rate revenue."

But the positive outlook came with a surprise farewell. Bruce Knooihuizen, Chief Financial Officer, announced he'll retire as soon as a replacement is found. The company plans an internal and external search for his replacement. Knooihuizen, who has been with Rackspace for three years, said he doesn't have any immediate plans to move to another company.

"I now feel I've done what I've come here to do," he said. "I'm proud of the financial results we've just disclosed. I love this company and am privileged to have worked here. But the time is right for me both personally and professionally. I'm confident the best is yet to come, both for me and Rackspace."

Despite the rapid growth, Napier mentioned the business is still in its infancy.

The company added about 9,000 servers during 2010, bringing the total server count to more than 66,000 worldwide. This type of investment, Napier pointed out, helped boost total customers from 118,000 in the third quarter to more than 130,000 in the fourth quarter.

Managed hosting revenue and cloud revenue also jumped in the quarter to $183.3 million and $31.4 million, respectively.

"In 2011 we will expand our business model to become more competitive," Napier said. He added that the plan is to make investments that will help improve the company's global capabilities and to enhance the portfolio with new products.

But Napier said the company is not taking its success lightly because the cloud-computing industry, which he deems the fastest-growing segment in technology, is gaining more interested parties that increase competition for Rackspace.

"The market has realized how big a technology shift is happening, that it's a game-changer for incumbent firms," he said. "I think they're concerned they're behind, and now they're trying to buy their way in. We are a long-term, committed player to this market. There's going to be a web giant that emerges from this technology shift, and we want to be that giant.

Can Salesforce.com Boost Its Presence in the Cloud Computing Market?

Excerpted from Seeking Alpha Report

Salesforce.com's main business is to sell cloud-based customer relationship management (CRM) software, but it has also started to make its presence felt in other segments of the cloud computing market.

Cloud computing presents a long-term opportunity for Salesforce.com as IT departments leverage cloud-based software instead of investing in additional hardware and on-premise software.

According to Gartner, the cloud computing market is estimated to have increased from $59 billion in 2009 to around $68 billion in 2010, and could grow to around $149 billion by 2014. The attractive growth prospects means that other players like Oracle, SAP, Google, Microsoft, and Amazon also stand to gain from the cloud computing market.

Other than cloud-based CRM software, Salesforce.com offers cloud-based software products like Force.com, AppExchange and Database.com. Cloud-based CRM software and other cloud-based software constitute around 63% and 26% of our $128 price estimate for Salesforce.com stock.

The cloud computing market consists of software-as-a-service (SaaS), platform-as-a-service (PaaS), and infrastructure-as-a-service (IaaS). Salesforce.com offers Force.com, which is the development platform and infrastructure for corporate IT departments and independent developers to build business applications. It provides an environment to develop custom applications beyond CRM. The company also offers AppExchange, which is an online directory that provides customers a way to browse, test-drive, share and install applications developed on the Force.com platform. Salesforce.com recently announced the launch of Database.com, a web-based database service, during the Dreamforce 2010 event.

We estimate that revenues from Salesforce.com's other cloud computing services like its Force.com platform and AppExchange have been relatively small. We project that Salesforce.com will increase its market share in the cloud computing space over our forecast period, from a relatively low current market share base.

To what extent Salesforce.com increases its market share will depend on how much the above mentioned products can gain traction going forward. For example, Database.com is an innovative product that opens the company to a $21 billion market currently dominated by Oracle. The potential for the cloud computing market is so large that, should Salesforce.com accelerate its market share slightly beyond our base estimates, to 1% by the end of our forecast period vs. our base estimate of 0.8%, it would imply 10% upside to our $128 price estimate for Salesforce.com stock.

VMware Takes Aim at Cloud Cacophony with "Your Cloud" Campaign

Excerpted from CRN Report by Kevin McLaughlin

There's a lot of noise in the cloud computing market, and the chatter is growing shriller by the day. VMware, in an effort to cut through the confusion, is playing up the choice and agility engendered by its approach to the cloud.

The heavy-handedness of IT vendors' cloud computing messages suggests a need for customers to adapt their needs to what vendors are providing, and the notion of customer choice seems to have been lost in the fray, according to Rick Jackson, VMware's Chief Marketing Officer.

"They're all saying start over, but that doesn't make any sense and doesn't address what CIOs care about most," Jackson said in a keynote Thursday at VMware Partner Exchange in Orlando, FL. "How can we have a cloud model that ignores the data center?"

VMware's cloud model requires that customers only make incremental technology changes in order to achieve the agility and other benefits the cloud has to offer, Jackson said. "Our role is to enable customers to extend the cloud and bridge to a choice of vendors, so that cloud computing, which will by definition be hybrid, will be a business decision and not a technology discussion," he said.

VMware's umbrella marketing theme for 2011 is "Your Cloud" and the company's messaging lines up around the three layers of cloud infrastructure, cloud application platform, and end-user computing. The theme is VMware's response to the messaging coming from the likes of Microsoft, Amazon, and Oracle, Jackson said.

On the cloud infrastructure side, VMware's marketing will focus on business critical applications, management and the virtues of enterprise hybrid cloud. Its cloud applications platform message will center on application modernization, data virtualization and platform as a service, specifically giving customers the choice of deploying apps in public cloud, through partners or in the data center.

End-user computing messaging will focus on desktop modernization, reducing total cost of ownership, securing apps and data and managing users as opposed to devices with Project Horizon, Jackson said.

VMware will run campaigns based on each of the three layers and is also planning to launch an SMB-targeted campaign in September. After running three marketing campaigns last year, VMware plans to run a total of five this year, Jackson said.

Cisco Launches New Cloud Computing Channel Programs

Excerpted from CRN Report by Steven Burke

Cisco Senior Vice President, US and Canada Partners, Jim Sherriff said the networking giant is poised to launch new cloud computing channel programs at its partner summit later this month.

Sherriff said partners will see a Cisco "deep dive around cloud" with new programs aimed at giving partners multiple cloud computing opportunities that range from building clouds to operating clouds to reselling clouds. "We'll put out a comprehensive plan at the Partner Summit (February 28th- March 3rd in New Orleans)," he said.

Sherriff made the cloud computing comments in an interview with CRN after a keynote session at the annual sales kickoff for NWN, the Waltham, MA headquartered $263 million national solution provider which grew its Cisco data center business by a whopping 601% last year.

Sherriff said the cloud computing opportunity is "intertwined" with the massive Cisco data center offensive which Cisco estimates as a $45 billion opportunity. "A big portion of that is going towards the cloud," he said. Cisco sees the cloud computing opportunity separately as at least another $10 billion opportunity.

Sherriff told the more than 200 NWN employees that Cisco is focused flat out on solution providers like NWN as its cloud computing route to market. "We are not confused on whether we are going direct or trying to compete with you by building an outsourcing business or compete with you by creating our own cloud offerings to squash any opportunity you might have," he said. "Our go-to-market strategy is through you. It has been like that for 15 years and it will continue to be like that."

That no-holds barred channel commitment could be a big differentiator for Cisco in the cloud computing market transition given the identity crises that some of its competitors face building out their own services businesses. What's more, Cisco has a successful track record of adapting its channel model to new emerging markets.

Sherriff, in fact, stressed that Cisco is "uniquely positioned to help drive market transitions" like cloud computing with partners like NWN. "We see those market transitions and what it means in terms of the potential to add value and create value for your customers," he said. "We do things that help you grow and help you grow profitably."

Sherriff's comments on the cloud opportunity echo those of Cisco Senior Vice President Worldwide Channels Edison Peres, who told CRN last fall that Cisco partners become more relevant as a result of the cloud.

Peres said at the time that Cisco partners will be seen as cloud resellers, cloud builders or cloud providers, and that the lines between those categories will continue to blur. "Many partners see cloud as a threat, and many see it as an opportunity. We see it as an opportunity if you're proactive in how you evolve your model, because the mix of revenues is going to change," Peres said at the time.

Sherriff, who oversees a staff of 800 employees charged with helping drive partner market transitions, said Cisco is committed to providing incentives to help partners move to new markets like cloud computing, virtualized data center, video solutions and collaboration. He said one of his top priorities is to have Cisco act as a "catalyst" to allow partners "to move faster into new markets and help you build the capabilities you need."

Sherriff said his team is working on sales and practice enablement tools and aimed at doing just that. "This will be an area that we shift more of our resources into," he said.

"It is extremely important that we get to those market transitions together quickly," he said. "So we will continue to shift more and more of our focus and architectural capabilities to help you build both the sales and the practice capabilities you need to be best in class in those new market transition areas."

Sherriff pointed to Cisco's Value Incentive Program (VIP) rebate, a nine year old program aimed at providing partner rebates in new emerging markets. "It is the envy of the channel industry in terms of its impact on profitability," he said.

Cisco has also put together dozens of memorandums of understanding investments under which it "puts skin in the game" to help partners make market transitions, said Sherriff. We will continue to do those things where we will be putting skin in the game," he said.

Sherriff also promised to "streamline" Cisco policies and processes around programs like Cisco's Opportunity Incentive Program (OIP) deal registration program so that partners are spending more time in front of customers and less time on channel processes. "I have people in my organization who spend more than 50% of their time just processing OIPs," he said. "That's very important, but I think there is a way for them to bring more value. We have to streamline the process."

Finally, Sherriff said that Cisco is refining its two primary go to market models (Co-Led vs. Partner Led). He stressed that there are different "processes" and "expectations" around the partner led model. "You'll see us start to specialize a bit more in terms of these two different engagement models," he said. "There really are different expectations and different ways we can bring value to you to help you get more traction in the marketplace."

China & IBM Develop City-Sized Cloud Computing Complex 

Excerpted from Switched Report by Amar Toor

China and IBM are teaming up to build a massive cloud computing and office complex. How massive? According to Computer World, it's the size of an entire city. The new center will cover an estimated 6.2 million square feet, with 646,000 square feet devoted to the data center alone. In total, the complex will be about the size of the Pentagon, though it will be spread out over a comparatively wider area in the Hebei Province.

IBM will contribute its data design services to the project, with assistance from Range Technology Development Co. Once completed, the data center itself will be among the largest in the world, but it will still trail the 1.1 million-square-foot center in Chicago, which, according to Data Center Knowledge, remains the world's biggest. The Chinese government has been devoting a lot of capital to expanding its information technology (IT) sector in recent years. According to market research firm IDC, the country's IT spending is expected to total $112 billion this year, compared to the $97 billion it spent in 2010.

The US, however, is expected to devote even more money to IT - $564 billion in 2011, or about 5.9% more than it spent in 2010. Dale Sartor, an engineer at the US Department of Energy (DoE), says large, centralized cloud computing can allow the Chinese to rapidly scale up their IT industry without sacrificing energy efficiency or relinquishing control over their infrastructure.

"I got a sense that the cloud is going to be huge in China for both efficiency reasons as well as the ability to control," Sartor told Computer World. "If everything was cloud computing and the government owns it, it's much easier to keep your finger on the Internet and other issues than by using a very distributed model."

Telefonica Consolidates its App Developer Grooming Effort

Excerpted from Telecom TV Report by Ian Scales

Telefonica has launched a developer community, BlueVia, through which it aims to promote its own global application programming interface (API) so that apps developers can write to exposed services in Telefonica's networks.

The API is being designed to be used for apps for PCs, tablets, and smart-phones, right across the various platforms and BlueVia will pull in Telefonica's existing developer programs: O2 Litmus in the UK, Open MovilForum in Spain, Movistar Developers Platform in Mexico, and Plataforma do Desenvolvedores Vivo in Brazil. 

Telefonica claims it will be the first operator in the world to offer between 10% and 50% of the revenue generated by API transactions to the developers, and in addition developers retain 70% of any application sales and subscription revenues. 

According to James Parton, head of and marketing for the initiative, Telefonica is purposely being agnostic about what 'sort' of developer or target device (or OS) is being aimed at. 

"It's about network as a service and we think it's potentially of equal value across all the platforms - that's smart-phones, tablets, PCs," he says. "What we're aiming to do is help developers monetize their work. The initial gold rush we've seen over mobile apps has come to an end." 

Indeed there are now tens of thousands of apps on the major app stores, the vast majority of which haven't made any money (if this was their aim) or, if free, haven't been downloaded enough times to justify the effort. "We think we're there for the next wave," says Parton. "Everything we do and provide is about helping developers monetize at the transactional level." In other words - to enable them to create ongoing revenue from within the application.

If an app offers users a way to send an SMS from a computer, say, then the developer will share in all the SMS revenue generated (by Telefonica) for as long as the app continues to be used. Parton says that the API will include hooks for developers to write to Jajah - Telefonica's Jajah web-enabled telephony play - and that will be available within the next couple of months. 

The move is interesting in a number of ways. To start with, Telefonica has stepped outside the Wholesale Applications Community (WAC) framework to make this move. This, it says, is because it wants to make use of some specific 'under the floor' (as opposed to over the top) capabilities within its network and WAC's API is, by definition, more generic. Secondly, it's an 'over the top' play (another one) which sees Telefonica using the openness of the mobile Internet to squeeze revenue out of other operator's mobile users. 

First SMS and then - once Jajah is added to the API - voice services from Telefonica are effectively being made available from within apps which could be downloaded by users across any network (it will be interesting to see if Apple allows it). 

Jose Valles, Head of BlueVia, says, "Internet and telecoms have changed not only the way we view the world, but the way we do business. This new global economy requires more collaborative business models based on openness and transparency. Our desire is to create a global, interactive community in which the developer will not only obtain revenues from the sale of their applications, but will also benefit from the API traffic generated, creating a mutually beneficial two sided business model based on the collaboration and interaction between both parties."

BitTorrent and Khan Academy Distribute Education

Excerpted from Torrent Blog Report

Imagine an organization with one mission - to provide a world-class education, for free, to anyone, anywhere. Now imagine having instant access to all that knowledge directly in your BitTorrent or uTorrent client.

This week, BitTorrent launched a brand-new app in collaboration with Khan Academy, a renowned not-for-profit organization fulfilling the mission of global education through video classes.

The Khan Academy exemplifies the type of content creators for whom BitTorrent built the App Studio - independent artists looking to build relationships with its global community of over 100 million users.

With the Khan Academy, BitTorrent has the added bonus of helping to promote a worthy cause through technology innovation. There are over 2,000 videos in the collection covering high school and college level curriculum.

The free app is now available in the BitTorrent App Studio, located in both the BitTorrent and uTorrent clients. Once installed, users may directly access and share free downloads of any of the Khan Academy video lessons.

For additional details, please see this press release. Enjoy the new app and stay tuned; many more exciting releases are on the way!

BitTorrent will be featured during CONTENT IN THE CLOUD at NAB.

Cloud-Based Music Streaming Service Slacker Raises $3 Million

Excerpted from Hypebot Report by Jyle Bylin

Slacker has raised $3 million in debt funding according to a SEC filing. This adds to the growing number of music start-ups that have gained additional funds in 2011. While Slacker is known more commonly as a rival to Pandora, in the coming months, it will be taking MOG, Rdio, Rhapsody, and Thumbplay Music head-on in the subscription-music-service sector.

No launch date is confirmed yet, but there's a high likelihood that Slacker will go live before Spotify comes to the US. Don't be fooled though. The fact that the media isn't tracking Slacker's every move like they do Spotify doesn't mean anything.

The company is coming to market with a very strong strategy. With a free radio offering at the front of its service, users will be able to slowly acquire songs and build their collections.

Rather than granting users limited access to favorite songs like Spotify does, Slacker will charge them for the privilege. By offering three tiers of service - free radio, paid radio, and on-demand - Slacker will give users room to grow.

Unlike other cloud-based music services, the company will not turn new users away once their free trial has ended.

This small element may prove critical to Slacker's success. So far, no company has cracked the subscription music formula and excited fans in a big way, but Slacker is the outlier to watch in 2011.

Slacker will be featured during CONTENT IN THE CLOUD at NAB.

10 Security Concerns for Cloud Computing

Cloud computing has grown in popularity over the past few years because of its ability to reduce costs and increase mobility. But despite these potential benefits, many IT professionals are concerned with maintaining a secure environment for critical applications and sensitive data. Get prepared for any security issue that may occur as you move your organization's data to the cloud.

Explore the top 10 security concerns you should address when considering moving critical applications and sensitive data to public and shared cloud environments. Discover the top cloud computing providers that can help you achieve a secure environment. Plus, learn about potential areas hackers may attempt to access in order to maintain optimal security in your cloud.

Please click here to view this report.

How Cloud Computing Affects Real People

Excerpted from CloudTweaks Report by Sourya Biswas

Any business decision is invariably taken considering its impact on different stakeholders. In this context, stakeholder refers to any individual or entity that influences or influences the business.

Consequently, the term encompasses as wide a variety of people as owners, managers, employees, shareholders, suppliers, customers and even the local community. We will use the same approach in evaluating the effects of migrating to cloud computing. In other words, we will look at how cloud computing affects real people.

Here, we present some stakeholders and their likely views on cloud computing. Note that this is intended to be representative and we do not profess it to be 100% accurate. Also, stakeholders, like all individuals, are prone to individualistic behavior that may not agree with that of the majority.

First of all, let's consider the Chief Information Officer (CIO). Well, he (note that "he" is gender-neutral here) will love the operational efficiencies and enhanced reliability that redundancy will bring. If one data center goes down, there are always two to back it up now. However, if the broadband connection is giving problems, he will be concerned. As he will regarding the security of client data stored on third-party servers. These issues are discussed in detail in Cloud Computing Risks (And How to Deal With Them).

The Chief Financial Officer (CFO) will love the lower costs that this move will result in. Sign one annual contract for cloud computing services and all maintenance costs are covered for a fixed figure. Using software-as-a-service (SaaS) and infrastructure-as-a-service (IaaS) in the on-demand mode will ensure there is no expensive hardware to spend on or software licenses to buy. Compared to such savings, initial installations expenses seem minimal.

IT managers will have mixed feelings, at least initially. While they will love data redundancy and ease of sharing information, concerns over loss of some control and monitoring ability will color their judgment. However, once they see that real-time tracking is possible with cloud computing, they will lean towards the technology.

System designers and developers will welcome the universal, platform-independent outlook of cloud computing as an opportunity to develop products with high portability across platforms and systems. Archivists and bookkeepers will appreciate the permanence that cloud computing, with its shared storage facilities, can provide.

The environmentalist will appreciate this change. A recent study commissioned by Microsoft and conducted by Accenture and WSP Environment & Energy, demonstrated cloud computing's potential to operate business applications more efficiently, resulting in a potentially lower environmental impact. Hence, in today's age of global warming, cloud computing is the greener option.

Now we come to the most important question of all - how will the end consumer, the man (or woman) on the street, be affected by cloud computing? In all likelihood, the results will be positive for the customer. Work will be done cheaper and faster; hence, it is expected that some of the cost savings will be passed on the consumer, who will also get deliveries faster than usual.

As can be seen, almost all the effects on real people are expected to be positive. Of course, there will be exceptions, but the weight of results favoring a move to the cloud as evidenced by recent stakeholder reactions is overwhelming.

Music Industry's Digital Woes 

Excerpted from MarketWatch Report

More than a decade after the Napster era, the music business is still declining - and digital revenue, via Apple's iTunes and the mobile business, is sputtering too. Plus: When will Spotify hit the US? Peter Kafka has details.

Coming Events of Interest

Digital Music Conference East - February 24th in New York, NY. The 11th Annual DMCE is the only event in the United States that brings together the top music, technology and policy leaders for high-level discussions and debate, intimate meetings and unrivaled networking.

Cloud Connect Conference - March 8th-10th in Santa Clara, CA. Learn about all the latest cloud computing innovations in the Cloud Connect Conference - designed to serve the needs of cloud customers and operators - where you will see the latest cloud technologies and platforms and identify opportunities in the cloud.

Media Summit New York - March 9th-10th in New York, NY. This event is the premier international conference on media, broadband, advertising, television, publishing, cable, mobile, radio, magazines, news & print media, and marketing.

NAB Show - April 9th-14th in Las Vegas, NV. For more than 85 years, the NAB Show has been the essential destination for "broader-casting" professionals who share a passion for bringing content to life on any platform - even if they have to invent it. From creation to consumption, this is the place where possibilities become realities.

CONTENT IN THE CLOUD at NAB - April 11th in Las Vegas, NV. What are the latest cloud computing offerings that will have the greatest impact on the broadcasting industry? How is cloud computing being harnessed to benefit the digital distribution of television programs, movies, music, and games?

1st International Conference on Cloud Computing - May 7th-9th in Noordwijkerhout, Netherlands. This first-ever event focuses on the emerging area of cloud computing, inspired by some latest advances that concern the infrastructure, operations, and available services through the global network.

Cloud Computing Asia - May 30th - June 2nd in Singapore. Cloud services are gaining popularity among information IT users, allowing them to access applications, platforms, storage and whole segments of infrastructure over a public or private network.CCA showcases cloud-computing products and services. Learn from top industry analysts, successful cloud customers, and cloud computing experts.

Cloud Expo 2011 - June 6th-9th in New York, NY. Cloud Expo is returning to New York with more than 7,000 delegates and over 200 sponsors and exhibitors. "Cloud" has become synonymous with "computing" and "software" in two short years. Cloud Expo is the new PC Expo, Comdex, and InternetWorld of our decade.

Copyright 2008 Distributed Computing Industry Association
This page last updated February 28, 2011
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