Synergy: Q3 Cloud Spending Up Over $11 Billion YoY; Google Cloud gained market share in 3Q-2022

Synergy Research estimates the cloud infrastructure market at $57B in Q3-2022. That was up by well over $11 billion from the third quarter of last year despite two fierce headwinds – historically strong U.S. dollar and a severely restricted Chinese market. The incremental spending represents year-on-year growth of 24%. If exchange rates had remained constant over the last year, the growth rate would have been over 30%. As the market continues on a strong growth trajectory,

Google is alone among the hyper-scaler giants to be gaining market share.  Google Cloud increased its market share in Q3 compared to the prior quarter, while Amazon and Microsoft market shares remained relatively unchanged. Compared to a year ago all three have increased their market share by at least a percentage point. Amazon, Microsoft and Google combined had a 66% share of the worldwide market in the quarter, up from 61% a year ago. In aggregate all other cloud providers have tripled their revenues since late 2017, though their collective market share has plunged from 50% to 34% as their growth rates remain far below the market leaders.

Synergy estimates that quarterly cloud infrastructure service revenues (including IaaS, PaaS and hosted private cloud services) were $57.5 billion, with trailing twelve-month revenues reaching $217 billion. Public IaaS and PaaS services account for the bulk of the market and those grew by 26% in Q3. The dominance of the major cloud providers is even more pronounced in public cloud, where the top three control 72% of the market. Geographically, the cloud market continues to grow strongly in all regions of the world.

“It is a strong testament to the benefits of cloud computing that despite two major obstacles to growth the worldwide market still expanded by 24% from last year. Had exchange rates remained stable and had the Chinese market remained on a more normal path then the growth rate percentage would have been well into the thirties,” said John Dinsdale, a Chief Analyst at Synergy Research Group. “The three leading cloud providers all report their financials in US dollars so their growth rates are all beaten down by the historic strength of their home currency. Despite that all three have increased their share of a rapidly growing market over the last year, which is a strong testament to their strategies and performance. Beyond these three, all other cloud providers in aggregate have been losing around three percentage points of market share per year but are still seeing strong double-digit revenue growth. The key for these companies is to focus on specific portions of the market where they can outperform the big three.”

About Synergy Research Group:

Synergy provides quarterly market tracking and segmentation data on IT and Cloud related markets, including vendor revenues by segment and by region. Market shares and forecasts are provided via Synergy’s uniquely designed online database SIA™, which enables easy access to complex data sets. Synergy’s Competitive Matrix™ and CustomView™ take this research capability one step further, enabling our clients to receive on-going quantitative market research that matches their internal, executive view of the market segments they compete in.

References:

https://www.prnewswire.com/news-releases/q3-cloud-spending-up-over-11-billion-from-2021-despite-major-headwinds-google-increases-its-market-share-301661926.html

Synergy Research: public cloud service and infrastructure market hit $126B in 1Q-2022

Cloud Computing Giants Growth Slows; Recession Looms, Layoffs Begin

 

Casa Systems and Google Cloud strengthen partnership to progress cloud-native 5G SA core, MEC, and mobile private networks

Andover, MA based Casa Systems [1.] today announced a strategic technology and distribution partnership with Google Cloud to further advance and differentiate Casa Systems and Google Cloud’s integrated cloud native software and service offerings. The partnership  provides for formalized and coordinated global sales, marketing, and support engagement, whereby Casa Systems and Google Cloud will offer Communication Service Providers (CSPs) and major enterprises integrated Google Cloud-Casa Systems solutions for cloud-native 5G core, 5G SA multi-access edge computing (MEC), and enterprise mobile private network use cases.  It’s yet another partnership between a telecom company and a cloud service provider (e.g. AWS, Azure are the other two) to produce cloud native services and software.

This new partnership enables Google Cloud and Casa Systems’ technical teams to engage deeply with one another to enable the seamless integration of Casa Systems’ cloud-native software solutions and network functions with Google Cloud, for best-in-class solution offerings with optimized ease-of-use and support for telecom and enterprise customers. Furthermore, Casa Systems and Google Cloud will also collaborate on the development of unique, new features and capabilities to provide competitive differentiation for the combined Google Cloud – Casa Systems solution offering. Additionally, this partnership provides the companies with a foundation on which to build more tightly coordinated and integrated sales efforts between Casa Systems and Google Cloud sales teams globally.

“We are delighted to formalize our partnership with Google Cloud and more quickly drive the adoption of our cloud-native 5G Core and 5G SA MEC solutions, as well as our other software solutions,” said Jerry Guo, Chief Executive Officer at Casa Systems. “This partnership provides the foundation for Casa Systems and Google Cloud’s continued collaboration, ensuring we remain at the cutting edge with our cloud-native, differentiated software solutions, and that the products and services we offer our customers are best-in-class and can be efficiently brought to market globally. We look forward to working with Google Cloud to develop and deliver the solutions customers need to succeed in the cloud, and to a long and mutually beneficial partnership.”

“We are pleased to formalize our relationship with Casa Systems with the announcement of this multifaceted strategic partnership,” said Amol Phadke, managing director and general manager, Global Telecom Industry, Google Cloud. “We have been working with Casa Systems for over two years and believe that they have a great cloud-native 5G software technology platform and team, and that they are a new leader in the cloud-native 5G market segment. The partnership will enable a much wider availability of premium solutions and services for our mutual telecommunications and enterprise customers and prospects.”

Casa also partnered with Google Cloud last year to integrate its 5G SA core with a hyperscaler public cloud, in order to deliver ultra-low latency applications.

Note 1. Casa Systems, Inc. delivers the core-to-customer building blocks to speed 5G transformation with future-proof solutions and cutting-edge bandwidth for all access types. In today’s increasingly personalized world, Casa Systems creates disruptive architectures built specifically to meet the needs of service provider networks. Our suite of open, cloud-native network solutions unlocks new ways for service providers to build networks without boundaries and maximizes revenue-generating capabilities. Commercially deployed in more than 70 countries, Casa Systems serves over 475 Tier 1 and regional service providers worldwide. For more information, please visit http://www.casa-systems.com.

Image Courtesy of Casa Systems

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References:

https://www.fiercetelecom.com/cloud/casa-systems-google-cloud-tout-combined-cloud-native-offering

https://www.fiercetelecom.com/tech/casa-systems-teams-google-to-deliver-cloud-native-5g-standalone-core

Celona’s 5G LAN solution for private 5G now on Google Distributed Cloud Edge

Celona, an innovator of 5G LAN solutions, today announced it has been selected by Google Cloud to accelerate the delivery of private 5G networks in the U.S. by making its 5G LAN solution available through Google Cloud’s recently announced private cellular network solutions running on Google Distributed Cloud Edge (GDC Edge) [1.].Enterprises using Google Cloud will now enjoy unprecedented agility and economies of scale by bringing new private cellular network services closer to users, data, and applications at the mobile compute edge.

Note 1.  Google Distributed Cloud Edge is a fully managed product that brings Google Cloud’s infrastructure and services closer to where data is being generated and consumed. Google Distributed Cloud Edge empowers communication service providers to run 5G Core and Radio Access Network (RAN) functions at the edge.

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Google Cloud and Celona are working together to offer turnkey enterprise private 5G networks with the ability to run network management, control, and user plane functions on Google Distributed Cloud Edge wherever it resides. The combined solution addresses distinct performance, service-level, and economic needs of key industry verticals by combining dedicated network capabilities with full edge-computing application stacks. Celona’s solution delivers a complete end-to-end 5G LAN developed for enterprise environments.

“We are excited to partner with Celona to help IT professionals improve application connectivity through private 5G,” said Tanuj Raja, Global Director, Strategic Partnerships at Google Cloud. “Deployed on Google Distributed Cloud Edge, Celona’s end-to-end private network solution enables enterprises to simplify and operate private 5G networks at scale and with the flexibility they need.”

“The combination of 5G LANs and edge compute unlocks a new generation of enterprise IT architecture capable of keeping up with the immense rate of digital transformation and automation occurring across almost every industry,” said Rajeev Shah, Celona’s co-founder and CEO. “The intrinsic agility of our edgeless enterprise architecture gives organizations tremendous flexibility and scale by bringing closer together critical network services and mobile edge compute applications.”

Celona’s Edgeless Enterprise architecture is anchored by the Celona Edge, a cloud-native 4G/5G private core network operating system that delivers an all-in-one network service overlay with advanced policy-based routing, QoS, and security segmentation functions. Celona’s unique approach supports the convergence of radio access network (RAN), application, and network service traffic, automatically shifting the delivery route of services based on performance, policy requirements, and network paths’ real-time health. It is the only private 5G solution in the industry that has been purpose-built to help organizations easily deploy, operate, and integrate 5G cellular technology with their existing infrastructure.

Since launching the first fully integrated 5G LAN platform in November 2020, Celona has seen strong demand from a range of enterprises, managed service providers, and mobile network operators looking to satisfy strategic digital business initiatives not adequately addressed today by Wi-Fi or other networking technologies. The company’s diverse customer base includes world-class organizations such as Verizon, NTT Ltd, SBA Communications, St. Luke’s Hospital System, Purdue Research Foundation, Stanislaus State University, and many other brand-named enterprises.

Celona’s 5G LAN platform is used by manufacturers, retailers, hospitals, schools, and supply-chain leaders to drive transformational results for a wide range of mission-critical use cases that require the deterministic wireless connectivity on private & interference-free cellular spectrum and fast mobility for a new generation of highly mobile devices and robotics infrastructures.

ABOUT CELONA:
Celona, the enterprise 5G company, is focused on enabling organizations of all sizes to implement the latest generation of digital automation initiatives in enterprise wireless. Taking advantage of dynamic spectrum sharing options such as CBRS in the United States, Celona’s Edgeless Enterprise architecture is designed to automate the adoption of private cellular wireless by enterprise organizations and their technology partners. For more information, please visit celona.io and follow Celona on Twitter @celonaio.

MEDIA CONTACT:
David Callisch
Celona, Inc.
[email protected]
+1 (408)504-5487

References:

https://www.celona.io/resources/celona-partners-with-google-cloud-for-5g-lans

https://www.celona.io/resources/5g-lan-provider-celona-is-named-a-cool-vendor-by-gartner

How organizations are using Google Distributed Cloud Edge with 5G LANs to streamline operations by visiting https://www.celona.io/community-stories/google-distributed-cloud-edge-and-celona-5g-lans

Google Cloud expands footprint with 34 global regions

Google Cloud has added a region in Dallas, Texas, which brings Google Cloud’s total number of global regions to 34. The rollout follows the launch of its 33rd cloud region in Columbus, Ohio late last month. Other recent additions include regions in Milan, Italy; Paris, France; and Madrid, Spain.

“We’ve heard from many of you that the availability of your workloads and business continuity are increasingly top priorities. The Dallas region gives you added capacity and the flexibility to distribute your workloads across the U.S.,” Google Cloud executive Stacy Trackey Meagher wrote in a blog post.

The Texas site is the eleventh region in North America and second in the central U.S., with the other located in Iowa. It also has North American cloud regions in Oregon, Salt Lake City, Los Angeles, Las Vegas, South Carolina and Northern Virginia as well as Montreal and Toronto, Canada.

Google Cloud regions are geographic areas of coverage that consist of several smaller zones. Most cloud regions are comprised of 3 zones. With its 34 current regions, Google Cloud now has 103 zones. Additional plans to expand its footprint are in place, with Google targeting new regions in Doha, Qatar; Turin, Italy; Berlin, Germany; Dammam, Saudi Arabia; and Tel Aviv, Israel.

The aggressive infrastructure investment comes as parent Alphabet chases profitability for its cloud unit and as Google Cloud looks to gain market share. But it has an uphill battle.

As of the end of Q1 2022, Synergy Research Group data showed AWS led the cloud market with 33% market share, with Microsoft following with 22% and Google Cloud rounding out the top three with 10%. And earlier this year, AWS announced plans to expand its Local Zone cloud compute capabilities to more than two dozen new countries.

Google Cloud revenue in Q1 rose 44% to $5.8 billion, but the company still posted a net loss of $931 million. Asked on an earnings call what the next phase of growth for Google Cloud will entail, Alphabet CEO Sundar Pichai said he is looking forward to more product innovation but added “We are scaling up, particularly in our go-to-market as well…over time, as we focus on converting bookings to consumption as well.”

References:

https://cloud.google.com/blog/products/infrastructure/a-google-cloud-region-now-available-in-dallas-texas

 

BT selects Google Cloud for group-wide data and AI transformation

In line with the theme of telcos partnering with cloud giants, UK incumbent BT has announced a new five-year deal with Google Cloud.  The objective is to leverage Google’s AI and cloud expertise to foster a new company culture BT calls ‘The Digital Way.’  The partnership will include a wide range of products and services, including cloud infrastructure, machine learning (ML) and artificial intelligence (AI), data analytics, security, and API management.  In particular:

  • Collaboration will involve BT using Google’s enhanced data and AI capabilities at every level of its business to deliver personalised customer experiences and continue its commitment to creating societal value through responsible, inclusive, and sustainable tech
  • Google Cloud will support BT with a full spectrum of products and services, from secure cloud infrastructure to advanced machine learning tools
  • Access to Google Cloud’s Site Reliability Engineering (SRE) experts will help drive the cultural change needed to enable BT to operate a data and AI platform in the cloud at scale

 

Image of Google Cloud.  Source: Google

The work will be overseen by BT Digital, a new arm of the business created last year and headed up by BT’s Chief Digital and Innovation Officer, Harmeen Mehta.

“Our partnership with Google is one of a series of strategic moves that BT Digital is taking to help accelerate BT’s growth and digital transformation. This is a partnership that is deeper than just at the technology level. It will help Digital as a whole supercharge BT and drive its return to growth,” said Mehta.  She then wrote on LinkedIn, “Delighted with this fantastic partnership with Google Cloud as we accelerate the BT digital transformation.”

As part of the deal, Google’s Site Reliability Engineering (SRE) team will also partner with BT to help the operator roll out autonomous operations and develop new cloud-based services for customers.

“We’re proud to collaborate with one of the world’s leading providers of communications services and play an integral part in its digital transformation journey,”said Thomas Kurian, CEO at Google Cloud.

“By deploying our full cloud capabilities, and support from our SRE organisation, our goal in this partnership is to set up BT with the tools it needs for future growth and innovation,” he added.

Google and BT have already started working together on adopting Google technology, and plan to complete the core migration of data by 2023.

Other telco’s have partnered with Google Cloud:

  • Late last month, Finnish telco Elisa also announced its own partnership with Google Cloud into its hybrid cloud offering.
  • Last November, Telenor and Google Cloud formed a partnership to digitalize the Norwegian telecom company’s global operations and are exploring ways to jointly offer services to customers
  • In February 2021, Canadian telco Telus and Google Cloud signed a 10-year collaboration deal to help fuel Telus’ internal digital transformation while also jointly developing new products and services.
  • In November 2019, Telecom Italia and Google Cloud formed a partnership that will enable TIM to expand its portfolio of public, private and hybrid cloud services and to offer edge computing services

References:

https://newsroom.bt.com/bt-selects-google-cloud-as-strategic-partner-for-group-wide-data-and-ai-transformation/

https://www.totaltele.com/512745/Cloud-first-AI-first-BT-selects-Google-Cloud-for-strategic-shift

Google Cloud Intrusion Detection System (IDS) now available worldwide

As more and more applications move to the cloud, cloud network security teams have to keep them secure against an ever-evolving threat landscape. Shielding applications against network threats is also one of the most important criteria for regulatory compliance.  To address these challenges, many cloud network security teams build their own complex network threat detection solutions based on open source or third-party IDS components. These customized solutions can be difficult and costly to operate, and they often lack the scalability that is required to protect dynamic cloud applications.

To meet this challenge, Google Cloud has announced the general availability of Google Cloud Intrusion Detection System (IDS) – a cloud-native managed network security solution, where key security capabilities are continuously engineered into our trusted cloud platform.  This core network security offering helps detect network-based threats and helps organizations meet compliance standards that call for the use of an intrusion detection system.

Cloud IDS is built with Palo Alto Networks’ industry-leading threat detection technologies,  providing high levels of security efficacy that enable you to detect malicious activity with few false positives.  The general availability release includes these enhancements:

  • Service availability in all regions
  • Auto-scaling available in all regions
  • Detection signatures automatically updated daily
  • Support for customers’ HIPAA compliance requirements (under the Google Cloud HIPAA Business Associate Agreement)
  • ISO27001 certification (and in the audit process to support customers’ PCI-DSS compliance requirements by year end)
  • Integration with Chronicle, Google’s security analytics platform, to help organizations investigate threats surfaced by Cloud IDS.

Managed network threat detection with full traffic visibility:

Cloud IDS delivers cloud-native, managed, network-based threat detection. It features simple setup and deployment, and gives customers visibility into traffic entering their cloud environment (north-south traffic) and into traffic between workloads (east-west traffic). Cloud IDS empowers security teams to focus their resources on high priority issues instead of designing and operating complex network threat detection solutions.4

“Cloud IDS delivers cloud-native, managed, network-based threat detection. It features simple setup and deployment, and gives customers visibility into traffic entering their cloud environment (north-south traffic) and into traffic between workloads (east-west traffic). Cloud IDS empowers security teams to focus their resources on high priority issues instead of designing and operating complex network threat detection solutions,” according to  Google.

“Google Cloud customers will be able to deploy on-demand application visibility and threat detection between workloads or containers in any Google Cloud virtual private cloud (VPC) to support their compliance goals and protect applications,” said Palo Alto Networks Senior Vice President Muninder Singh Sambi in a separate post.

Google Cloud VPC threat detection preceding Google Cloud IDS was limited in its scope, he said. It was also complex to design and implement, and—most crucially for cloud-native businesses—couldn’t scale dynamically to handle cloud bursting events, which are necessary to handle peaks in IT demand.

“Until now, detecting threats in traffic between workloads within the trust boundary of a VPC has been a significant hurdle for cloud network security teams, leading to compliance challenges and blind spots for the Security Operations Center (SOC),” he said.

“The Palo Alto Networks ML-powered threat analysis engine processes over 15 trillion transactions per day, automatically collected from across our global network of firewalls and endpoint agents. The result is 4.3 million unique security updates made per day to ensure you’re covered against the latest threats,” Sambi added.

Google Cloud IDS comes at at time when hyper-scalers, including Google, Amazon and Microsoft, are rapidly increasing their global Wide Area Network (WAN) reach. Businesses are increasingly turning to the public cloud and multi-cloud as more companies pivot to being cloud-native or at least cloud-adjacent.

In December Google announced plans to move into Germany, Israel, and Saudi Arabia with new cloud regions planned for 2022. Those join 29 cloud regions and 88 zones already in use.

Cloud IDS is now available in all regions. It provides protection against malware, virus and spyware, command and control (C2) attacks, and vulnerabilities such as buffer overflow and illegal code execution attacks. Auto-scaling capability dynamically adjusts Cloud IDS as needed when your traffic throughput changes so that you can automatically keep up with your scale needs. Threat signature updates are applied daily so you can stay ahead of the new threat variants. You can now use Chronicle to investigate the threats surfaced in Cloud IDS. With Chronicle’s integration, you can store and analyze Cloud IDS threat logs along with all your security telemetry data in one place so that you can effectively investigate and respond to threats at scale.

Google has patented their IDS, which is defined as follows:

An intrusion detection system for detection of intrusion or attempted intrusion by an unauthorized party or entity to a computer system or network, the intrusion detection system comprising means for monitoring the activity relative to the computer system or network, means for receiving and storing one or more general rules, each of the general rules being representative of characteristics associated with a plurality of specific instances of intrusion or attempted intrusion, and matching means for receiving data relating to activity relative to said computer system or network from the monitoring means and for comparing, in a semantic manner, sets of actions forming the activity against the one or more general rules to identify an intrusion or attempted intrusion. Inductive logic techniques are proposed for suggesting new intrusion detection rules for inclusion into the system, based on examples of sinister traffic.

 

References:

https://cloud.google.com/blog/products/identity-security/announcing-general-availability-of-google-cloud-ids

https://www.paloaltonetworks.com/blog/2021/07/google-cloud-network-threat-detection/

https://patents.google.com/patent/WO2003090046A2

Google Cloud IDS simplifies virtual private cloud network threat detection