Report: Deutsche Telekom Considers Host Europe Group Acquisition

Report: Deutsche Telekom Considers Host Europe Group Acquisition

Host Group Europe’s (HEG) search for buyers may be drawing to a close, as reports indicate Deutsche Telekom is considering acquiring the company from private equity parent Cinven. Five different sources close to the situation told Reuters that Deutsche Telekom is seeking US private equity partners to help fund a deal to merge HEG with its web hosting subsidiary Strato.

Investment firms Hellman & Friedman and Blackstone were named by several sources as among those considering participation. None of the companies named in the report commented. Deutsche Telekom has business relationships with both firms, and CEO Tim Hoettges has expressed comfort with private equity partnerships, according to the report.

READ MORE: Host Europe Group Shops for Buyers: Report

In April a report indicated that Cinven had put HEG up for sale with a €1.7 billion ($1.9 billion) sticker price, and also mentioned Hellman & Friedman among firms that might be interested. That price puts HEG’s multiple to earnings of €140 million at just over 12 times, which is comparable to GoDaddy’s multiple, and significantly higher than competitors Rackspace and Endurance International Group.

Strato was acquired by Deutsche Telekom in 2009 for €275 million ($310 million). One of Reuters’ sources said it has core earnings of around €30 million and its enterprise worth is about a quarter as much as HEG.

Potential bidders for HEG would have to consider the value of both its mass market and managed hosting businesses, according to the report.

Deutsche Telekom announced intentions to double its business cloud revenue by 2018 and become the leading cloud platform provider for businesses in Europe when extending a partnership with Huawei to include public cloud a year ago. Adding HEG’s customers, products and team would be a significant move towards that goal.

Source: TheWHIR

IBM Brings VMware Horizon Air Desktop as a Service to its Cloud

IBM Brings VMware Horizon Air Desktop as a Service to its Cloud

The VMware Horizon Air portfolio will be launched globally on the IBM Cloud later this year, the companies announced Tuesday. Customers will be able to use the Horizon Air multitenant desktop-as-a-service offering to deliver Windows desktops and applications from the cloud to any desktop, laptop, or mobile device.

In a promotional video accompanying the announcement VMware CEO Pat Gelsinger says Horizon Air on IBM Cloud “will help customers and partners transform the way they deliver windows applications and virtual desktops in the cloud, allowing employees to embrace the business mobility revolution: anywhere; anyplace; anytime.”

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Gelsinger also said in an interview with The WHIR that the current mobile-cloud era is the most transformative period in his career for IT.

The companies said that with VMware Horizon Air’s scalability and flexible monthly subscription pricing it will prove less costly and complex for enterprises than legacy on-premise virtual desktop infrastructure. IDC has predicted the global DaaS market will grow from $376 million in 2014 to over $1.4 billion in 2019, according to a VMware blog post.

Horizon Air is based on Desktone, which VMware acquired in 2013 to serve the demand for mobile enterprise hybrid computing.

“Hybrid is the new reality for migration to cloud. It’s the fastest-growing segment in the enterprise cloud space. Clients want control and flexibility in making decisions about taking their existing IT infrastructure into the cloud,” said IBM Cloud CTO Jim Comfort in a blog post.

The launch extends a strategic partnership IBM and VMware announced in February at IBM Interconnect to encourage enterprises to move workloads from on-premise software-defined data centers to the cloud. The companies’ general partnership spans 14 years, and includes IBM’s support for VMware NSX, which launched in November to encourage enterprises to transition to hybrid environments including Softlayer.

VMware Horizon Air on IBM Cloud will be available to all customers of both companies globally, after an initial launch slated for Q3 2016.

Source: TheWHIR

FCC Open Internet Rules Upheld in Federal Court

FCC Open Internet Rules Upheld in Federal Court

The D.C. Circuit Court of Appeals denied the appeal of the United States Telecom Association (US Telecom) on Tuesday, upholding the Federal Communication Commission Open Internet rules. The ruling (PDF) clears the way for the application of regulation of broadband as a utility, extending laws governing telephone services to internet service providers, pending further appeal.

US Telecom had argued on numerous grounds that the FCC cannot reclassify broadband as a telecommunications service, preferring its prior status as an information service. The court found the various arguments unpersuasive, and while a dissenting opinion held that the FCC had “acted arbitrarily and capriciously,” the dissenting judge none the less agreed that the FCC has the authority to classify broadband as a telecommunications service.

“Today’s ruling is a victory for consumers and innovators who deserve unfettered access to the entire web, and it ensures the internet remains a platform for unparalleled innovation, free expression and economic growth,” said FCC Chairman Tom Wheeler. “After a decade of debate and legal battles, today’s ruling affirms the Commission’s ability to enforce the strongest possible internet protections – both on fixed and mobile networks – that will ensure the internet remains open, now and in the future.”

Some elements of the US Telecom challenge seemed unlikely to succeed, including its key claim that the precedent set in the “Brand X” case is does not apply, and therefore that the definition of “telecommunications” is not ambiguous. Politico reports that the appeals court judges had seemed skeptical of the applicability of the FCC’s new net neutrality rules specifically to mobile broadband and internet exchange traffic, but Tuesday’s ruling represents an unqualified victory for the FCC. Net neutrality advocates are hardly enthusiastic about the FCC’s regulations.

Republican lawmakers have opposed the regulations and introduced the Internet Freedom Act into Congress last year, which was immediately sent to the Subcommittee on Communication and Technology.

Verizon successfully blocked FCC net neutrality regulation in appeals court in 2014.

Source: TheWHIR

Microsoft Dominates Cloud Infrastructure Software Market: Synergy

Microsoft Dominates Cloud Infrastructure Software Market: Synergy

Cloud deployments and cloud-enabled systems now account for well over half of the $29 billion per quarter data center infrastructure market, according to Synergy Research Group. Synergy released Q1 2016 data on the cloud-building technology market this week which shows Microsoft continues to dominate the cloud infrastructure software market with a share of over 40 percent.

VMware has the second largest share of the cloud infrastructure software market, at just under 20 percent. Cisco and HPE hold the highest market share in public and private cloud hardware, respectively, and each company was second in the other category. Dell was third in both hardware categories. IBM, EMC, Lenovo, and Huawei were other vendors with substantial market share.

SEE ALSO: Cloud Companies “Might Feel Good About Themselves” But Good Luck Reaching AWS Heights: Report

“With spend on cloud services growing by over 50 percent per year and spend on SaaS growing by over 30 percent, there is little surprise that cloud operator capex continues to drive strong growth in public cloud infrastructure,” said Jeremy Duke, Synergy Research Group’s founder and Chief Analyst. “But on the enterprise data center side too we continue to see a big swing towards spend on private cloud infrastructure as companies seek to benefit from more flexible and agile IT technology. The transition to cloud still has a long way to go.”

In a soft quarter typical for the beginning of the year, infrastructure sales grew by 13 percent annualized in Q1, and 20 percent over the past year.

Synergy calculated total public cloud revenues at $20 billion per quarter as of September.

READ MORE: HPE Bets on Core Data Center Hardware Sales to Drive Profits

Source: TheWHIR

IANA Transition Proposal Gets NTIA Stamp of Approval

IANA Transition Proposal Gets NTIA Stamp of Approval

The National Telecommunications & Information Administraton (NTIA) announced Thursday that it has accepted a proposal for transitioning the Internet Corporation for Assigned Names and Numbers (ICANN) to the private sector. The proposal meets the conditions set out in 2014 by the NTIA for the replacement of itself as overseer of ICANN with a number of accountability and transparency mechanisms and bylaws to balance the powers of multiple stakeholders and the ICANN board.

“Today’s announcement marks an important milestone in the U.S. government’s 18-year effort to privatize the Internet’s domain name system,” said US Secretary of Commerce Penny Pritzker. “This transition ensures that the Internet continues to flourish as a platform for innovation, economic growth and free expression. I want to thank the Internet’s diverse multistakeholder community, which includes businesses, technical experts, and civil society groups, for their dedication and hard work.”

SEE ALSO: Plan to Transfer ICANN Stewardship from US to Global Multi-Stakeholder Group on Course

The criteria set out by the NTIA for the IANA transition were to support and enhance the multistakeholder model, maintain the security and stability of the DNS, meet the needs of IANA service partners and customers, and maintain the openness of the internet, without recourse to a government-led organization. ICANN set out the proposal in March, which includes measures for “the community” to potentially block ICANN budgets, bylaw changes, and even board members, as a safeguard against takeover.

Oversight of the Internet Assigned Numbers Authority (IANA) will be transitioned from the NTIA to “direct customer stewardship via contracts, service-level expectations, community-led reviews, and increased transparency.”

The proposal was weighed against recommendation from the Government Accountability Office and reviewed by a panel of corporate governance experts, NTIA said.

“The internet’s multistakeholder community has risen to the challenge we gave them to develop a transition proposal that would ensure the internet’s domain name system will continue to operate as seamlessly as it currently does,” said Assistant Secretary for Communications and Information and NTIA Administrator Lawrence E. Strickling. “The plan developed by the community will strengthen the multistakeholder approach that has helped the Internet to grow and thrive, while maintaining the stability, security, and openness that users across the globe depend on today.”

The Internet Association, the Computer & Communications Industry Association (CCIA), and the Internet Infrastructure Coalition (i2Coalition) issued a statement in support of the proposals.

“The internet economy applauds NTIA for its deliberative and thorough work reviewing the ICANN transition proposals to ensure its principles for a successful transition are met. Our organizations agree that the proposals to transition ICANN from U.S. government stewardship to a bottom-up, multistakeholder model satisfy NTIA principles and provide the internet with the best path forward for self governance. It is important that Congress not artificially slow down the transition beyond theSeptember 30 expiration of the current IANA contract. We will remain engaged and vigilant as the transition proceeds to ensure the continued success of the multistakeholder model.”

Ecommerce lobby group NetChoice also expressed support for the decision.

US Senator Ted Cruz (R-Tex.) introduced legislation on Wednesday, the Washington Post reports, to require the Commerce Department to keep ICANN under the NTIA unless even more legislation is passed, ordering it to carry on.

Recently departed ICANN head Fadi Chehadé said a year ago that the government would approve a transfer plan before the fall Presidential election, despite the renewal of the existing contract just last August.

Source: TheWHIR

AWS Migration Competency Launches with Dozens of Partners

AWS Migration Competency Launches with Dozens of Partners

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Amazon Web Services has added five categories related to migration to the AWS Partner Network (APN) to encourage enterprise cloud migration. The AWS Migration Competency was unveiled in an announcement on Wednesday, along with dozens of initial launch partners providing migration services.

AWS Migration Competency partners are grouped by five sets of services. The solutions and experience of the partners can help businesses through all stages of complex migrations, from discovery and planning through operations, AWS said.

  • Migration Delivery Partners: 2nd Watch, Accenture, ClassMethod, ClearScale, Cloud Technology Partners, cloudpack, Cloudreach, Cognizant Technology Solutions, Corpinfo, CSC, FPT Software, Infosys, Logicworks, REAN Cloud, Serverworks, Slalom Consulting, Smartronix
  • Migration Consulting Partners: Apps Associates, Aquilent, Datapipe, Flux7, Pythian, TriNimbus
  • Migration Technology for Discovery & Planning: Atadata, Cloudamize, RISC Networks
  • Migration Technology for Workload Mobility: Racemi, CloudEndure, Atadata
  • Migration Technology for Application Profiling: New Relic, AppDynamics, Dynatrace Ruxit

AWS already offers a Professional Services Cloud Adoption Framework, and launched its Database Migration Service in October to move enterprise databases to AWS Aurora, but as Bill Kleyman pointed out in January, working with heterogeneous storage ecosystems requires expertise.

“More and more, I hear from customers who want to migrate large-scale workloads to AWS, and seek advice regarding their cloud migration strategy,” said AWS Chief Evangelist Jeff Barr in a blog post.

With over 30 percent of the cloud infrastructure market already, and a lead among public cloud providers for enterprises, AWS room to grow its revenue from enterprises is increasingly among cloud adoption laggards and business that might require a little more help and reassurance then the pioneers of public cloud use.

AWS announced a partnership with Ericsson in February to encourage telecom cloud migration by building cloud innovation centers.

Original article appeared here: AWS Migration Competency Launches with Dozens of Partners

Source: TheWHIR

Rackspace Launches Managed Magento Environments on AWS

Rackspace Launches Managed Magento Environments on AWS

Rackspace has launched managed Magento environments on Amazon Web Services and tiered support and service options for managed applications, the company announced Tuesday.

Managed Environments for Magento are pre-built Magento architectures running on optimized AWS infrastructure. It includes options for customizing the infrastructure of the Magento application, database, admin server, Redis, and Memcached, with one-click deployment.

Rackspace will also roll out Managed Cloud for Magento “in a few months” to deliver the same Magento environments on AWS using a software application for customers, Magento developers, and systems integrators to use themselves.

READ MORE: Rackspace CEO: Q1 2016 Growth Driven by Managed Cloud Services Demand

The expanded Managed Application Services options provide support options for business-critical applications: Magento; SAP Hybris; Sitecore Experience Platform; Oracle Commerce; Adobe Experience Manager; and custom Java and .net applications. Application support can be purchased based on “Tools and Expertise” for self-monitoring, “Alerts and Response” for proactive Rackspace management, and “Critical Application Services” for expert consultation on application environment design and performance.

“All of these additions to the Rackspace Digital portfolio offer our customers new ways of removing the burden of architecting and managing optimized digital environments, allowing them to focus on delivering differentiated customer experiences,” said Rackspace Director of Product for the Digital Practice Brant Jones in a blog post.

SEE ALSO: Rackspace Launches One-Stop Digital Services Practice

Managed services were the top growth segment for Rackspace in the last quarter.

Magento is the leading platform for ecommerce with a 29 percent market share, aheadWorks reported in March. Managed Magento, therefore, is a big potential market for Rackspace, and PayPal and Ipsos predicted in November that the global ecommerce market will surpass $661 billion in 2017. The addition of managed Magento on AWS follows on Rackspace’s launch of support for AWS in October.

Source: TheWHIR

California Man Charged $124K in Connection to NetSuite Hacks: Report

California Man Charged 4K in Connection to NetSuite Hacks: Report

A California man who pleaded guilty to intentional damage of a computer network in relation to a series of 2012 hacks has been sentenced to a year in prison and a $124,000 fine. Robert Saunders, 30, of San Jose, was apprehended in Oregon in 2014, and pled guilty in February to hacks causing approximately $189,000 in losses to a San Meteo-based company. Reports indicate that the company is NetSuite.

The series of hacks included blocking potential customers by changing details associated with a demo account, obtaining information from a database, and posting offensive material in the company’s test account, according to a release by the US Justice Department.

READ MORE: FBI Subpoenas Tor Developer to Testify in Criminal Hacking Investigation

Saunders was ultimately charged with one count of Intentional Damage to a Protected Computer; four counts of Obtaining Information from a Protected Computer without Authorization; and two counts of Possession of a Firearm in Interstate Commerce while Unlawfully using a Controlled Substance. He pleaded guilty to the intentional damage charge under the conditions of a plea agreement.

SEE ALSO: Hacker Lifts Millions of User Credentials from Webmail Providers: Report

The wording of the Justice Department release headline “restitution for costs incurred” indicates the inclusion of mitigation and related costs in the $189,000 damages.

Saunders will also serve three years of probation, and forfeits the property seized in the investigation. His prison sentence is shorter than those received by the four members of cyber-vandal group Lulzsec in a UK court in 2013.

Source: TheWHIR

Ecommerce as an Opportunity for Service Providers

Ecommerce as an Opportunity for Service Providers

The program of educational sessions at HostingCon Global 2016 New Orleans has been carefully constructed to cover the full range of challenges and opportunities for business success in the web hosting and cloud provider ecosystem. Ecommerce is one of the fastest growing and potentially most lucrative opportunities currently in the industry, but many companies have been slow to adapt to take advantage of it.

US online retail sales are estimated at $340 billion in 2015, and a report by Google and PayPal estimated the four largest online retail markets will reach $500 billion within two years. Google and Forrester have predicted the ecommerce market in India will reach $15 billion this year as well, and new ecommerce markets are opening at the speed of internet access improvement.

[Get Your HostingCon Global Exhibit Booth Now Before it’s Too Late]

That’s why one of the sessions in the Marketing Track of HostingCon Global is “How Service Providers Can Take Advantage of the Booming E-Commerce Market.” Wilfried Beeck, CEO of ePages, will lead an exploration of the role of web hosts, ISPs, and service providers in ecommerce, particularly for SMBs. Competition among ecommerce companies grows constantly, but few of them deal directly, let alone effectively with SMBs.

Beeck founded ePages in 1983, after studying Mathematics and Computer Sciences. He also co-founded Intershop Communications GmbH, and managed its IPO in 1998. He is currently involved with a number of other high-tech companies as an investor and board member.

His expertise will be highly valuable to many hosts, and just may be the start of a big break for your web hosting company at HostingCon Global 2016. Register by June 10 to save $100 with the Early Bird rate.

Source: TheWHIR

Meeker: Internet Trends Changing Faster Than Ever

Meeker: Internet Trends Changing Faster Than Ever

India has passed the US as the second largest global internet market, behind China, with 277 million users with an annual growth rate of 40 percent, according to the latest research released by Mary Meeker of Kleiner Perkins Caufield & Byers (KPCB). The Internet Trends 2016 presented at Vox Media’s Code Conference on Wednesday shows major change happening in advertising methods, web search, and internet video viewing.

The report comes as DigitalOcean has opened up its second Asian data center in India, one of many US-based internet companies that has expanded to the country in recent months.

SEE ALSO: IoT to Drive Next Wave of Connected Devices: Report

It is little surprise that internet advertising is growing, or that mobile advertising growth outpaces desktop, but the extent of these trends is striking. There was a 20 percent increase in overall spending to $60 billion in the US in 2015, and mobile ad spend roughly doubled in that time. Still, the report shows that based on time spent, mobile still represents a major opportunity for advertisers, with 25 percent of time but only 12 percent of advertising spent on mobile. Non-mobile internet use takes 22 percent of consumer’s time, and 23 percent of advertising spending.

Ad blockers and muted videos represent major growing barriers to the effectiveness of that advertising, however, with 93 percent of internet users considering using ad blocking software, and 81 percent muting video ads. Privacy is also a looming issue, with 50 percent saying they are very concerned about data privacy and how companies use customer data.

READ MORE: China Said to Push for More State Control Over Video Websites

US data privacy regulation policy is in currently in development by the FCC, with advertisers expressing fear earlier this week that their effectiveness could be curtailed by proposed rules.

The report also highlights the declining use of text as a form of internet communication, suggesting it is being replaced in many areas by voice and image. The number of Baidu queries by speech, for instance, had reached one in ten in September 2014, when the company’s chief scientist Andrew Ng predicted that half of all searches will be done by voice or image in 2020.

As big data is adopted by businesses, opportunities for business apps will continue to emerge, according to the report, which is potentially a boon for both web hosts and cloud service providers.

A general point made throughout the report is that the pace of market transformation related to the internet is out of proportion with historical changes in media or technology. The rapid pace has made many internet companies highly profitable very quickly, but it puts pressure on companies to be nimble and forward-thinking.

Source: TheWHIR