The Markets The Cloud Giants Are Serving & Where To Compete

Next Generation App

Cloud service providers need to position themselves against the cloud giants. To do this, it is important to get an understanding of what market these giants are serving.

If you read my previous post on legacy vs. next generation apps, you’ll know that we believe there are two business strategies for cloud service providers:

  • Focus on migrating existing workloads (a focus on legacy apps)
  • Attract new workloads (a focus on next generation apps)

Today, while you consider what might be right for you (hint: attracting new workloads through next-gen app developers offers more advantages), you should also consider the markets your competitors, the giants are serving. Here is our quick key to the market.
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What Hypervisor Do You See Driving Your Cloud

Cloud This year’s HostingCon is now a distant memory for all of us that attended. However, following the event, our partner ScienceLogic released findings from its annual survey of hosting providers to gain a sense of change in attitude from last year’s hosting survey, focusing on five key areas. The area we are focusing on today is relating to hypervisor technology.

ScienceLogic asked what hypervisor technology do hosters see driving their cloud deployments in the future. The answers are below.

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Amazon the King, Flexiant the Prince, and VMware is VMware

As we wind up the first half of 2014, we’ve noticed a sharp rise in demand for IaaS cloud orchestration showing that service providers are more prepared and ready for adoption this year than last.

Amazon the King, Flexiant the Prince, and VMware is VMware

Cloud orchestration serves as the principle foundation layer for service providers to launch cloud services on their own infrastructure. Clearly, one cannot launch their own cloud on their own infrastructure without this primary building block before ultimately arriving at the attractive shiny SaaS and PaaS solutions. Telcos, service providers and hosting companies require this core ability to orchestrate, from one UI, all the compute and networking power necessary to launch a local cloud. With this ability, these telcos, service providers and hosters now can offer customers an alternative to the norm or defacto– Amazon Web Services (AWS), the undisputed King of Cloud.

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Vendors Competing Against Their Own Customers?

I’ve noticed an interesting trend occurring recently. Many vendors with solutions dedicated to the cloud and particularly service providers, are suddenly competing with their own customers. Consider VMware, who is meeting enterprises’ public cloud needs, through partner data center operators (or preferred service providers over you). So while the company profits from software sales to service providers, it also makes profits from the same customer base. VMware has short-term ambitions to be rated as one of the top five public cloud service providers in the planet.  As a result existing cloud service providers are right to be concerned in thinking that VMware are competition. You can read more of our thoughts for avoiding being stepped on by VMware here. We’ve also seen other smaller vendors do similar things in competition .

Competing with Customers

We believe competition is good and healthy, but competing against the same people you are selling your solution to is a strategic move that is likely to have consequences. It also seems to reflect a certain disregard for the ongoing investments and commitments made by existing customers in favor of a perceived larger and more strategic market opportunity. It is therefore not surprising that Flexiant is currently in discussion with many organizations that want vendor independence and to work with a company that supports the growth ambitions of their customers rather than attempts to compete against them.

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Hypervisor Comparison: KVM, Xen, VMware, Hyper-V

There are many considerations when selecting a hypervisor such as the performance, how mature the technology is, how it integrates with existing systems, the commercial implications and guest and functionality support. In our latest white paper, we put together a guide that sets out to help you select the most appropriate hypervisor.

Within the paper, we compared four major hypervisors – KVM, Xen, VMware and Hyper-V. Here is a snapshot of the hypervisors we reviewed and a bit about each:


KVM logo

KVM – a Linux based open source hypervisor. First introduced into the Linux kernel in February 2007, it is now a mature hypervisor and is probably the most widely deployed open source hypervisor in an open source environment. KVM is used in products such as Redhat Enterprise Virtualization (RHEV).

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