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Amazon Web Services may still be the behemoth in public cloud, but it will see growth erosion in share as competitive pressure increases, according to a new report by Gartner. Microsoft, Alibaba, and Google all saw higher growth in market share in 2016 than AWS, Gartner said Wednesday.
Though AWS had 44.2 percent of the IaaS public cloud services market share in 2016, Alibaba (126.5 percent) and Google (100 percent) actually saw the highest growth in market share over 2015. Comparatively, Amazon saw its market share increase by 45.9 percent in 2016 over 2015.
While it’s not like Alibaba came out of nowhere, it is notable that July was the first time it appeared on Gartner’s Magic Quadrant for IaaS. Part of this is because while it’s the dominant player in the Chinese cloud services market, its international footprint has only started to take shape the past couple of years. In 2016, it launched four new data centers in Europe, Australia, the Middle East and Japan.
Gartner said that the worldwide IaaS public cloud market grew 31 percent in 2016 to reach $22.1 billion, up from $16.8 billion in 2015.
“The market for cloud services is growing faster than virtually every other IT market today, with much of this growth coming at the expense of the traditional, noncloud offerings,” Sid Nag, research director at Gartner said in a statement. “The demand for cloud-based IaaS continues on its path of aggressive growth, and the high growth


(Bloomberg) — AT&T Inc. and other broadband providers asked the U.S. Supreme Court to overturn the Obama-era “net neutrality” rule barring internet service providers from slowing or blocking rivals’ content.
The appeals, filed Thursday, will put new pressure on a rule enacted in 2015 when the Federal Communications Commission was under Democratic control. Filing a separate appeal from AT&T were the United States Telecom Association, a trade group, and broadband service provider CenturyLink Inc.
Now under Republican leadership, the FCC is already considering a plan to replace and weaken the rules. FCC Chairman Ajit Pai wants to remove strong legal authority that critics say over-regulates telephone and cable providers and that defenders say is needed to enforce fair treatment of web traffic.
The embattled net neutrality rules bar internet service providers such as AT&T, Verizon Communications Inc. and Comcast Corp. from blocking or slowing some web traffic in favor of other content — their own or a paying customer’s.
“The practical stakes are immense,” AT&T said in its appeal of a ruling that backed the FCC. The company pointed to a dissenting opinion that said the regulation “fundamentally transforms the internet” and will have a “staggering” impact on infrastructure investment.
The rules are backed by tech companies such as Alphabet Inc.’s Google and Facebook Inc.
Pai, elevated to chairman by President Donald


The newly formed Rackspace Application Services will provide partner managed cloud for SAP software solutions, under an agreement announced Tuesday.
The Rackspace Application Services business unit was launched as a replacement for its Managed Application Services in May, and recast in June, following the company’s acquisition of TriCore Solutions, with former TriCore CEO Mark Clayman in charge.
“With this relationship, we’re providing a one-stop-shop for hosted services for SAP solutions – from software acquisition to ongoing support, all with one cloud delivery model – to directly address the customer pain points associated with today’s complex and distributed business environment,” said Clayman, now SVP and general manager of Rackspace Application Services. “By delivering a partner managed cloud, we’re allowing customers to quickly adopt the latest transformative SAP technologies without the high cost often associated with innovation.”
Rackspace will offer affordable, ready-to-use SAP solutions hosted in its private cloud on a subscription basis, according to the announcement. Rackspace will also offer its application migration, implementation, management, and support services to its SAP customers.
TriCore specialized in application management, particularly Oracle and SAP, and Rackspace Application Services is an SAP silver partner, certified in hosting SAP and in HANA operations services.
Rackspace is also adding multi-cloud management


(Bloomberg) — Baidu Inc. is building a system to allow China’s cybercops to spot and fix “online rumors” deemed a threat to stability, allowing police agencies to insert themselves directly into everything from its search results to discussion forums.
The platform links 372 police agencies who will use sophisticated artificial intelligence-driven tools to monitor and respond to fake news, blogposts and other items across about a dozen Baidu services, including the popular search engine, the official Xinhua News Agency reported. More than 600 organizations and experts in different areas will be enlisted to weigh in on their respective fields, according to an email sent by Baidu. They included official organs such as the Chinese Academy of Social Sciences, as well as media outfits such as Shanghai United Media Group and Caijing.
See also: Chinese Regulator Starts Probe Into Tencent, Weibo and Baidu
Internet giants from Facebook Inc. to Twitter Inc. are struggling to deal with a proliferation of spurious news articles across social media services. Baidu’s approach allows the Chinese government to intervene directly and write articles in rebuttal. Items that its system decides are fake will be clearly labeled a “rumor” at the very top of search results, alongside an explanation penned by the relevant agency or organization, according to a sample page Baidu provided.
The same system will be employed across products from its news aggregator and online forums to


Brought to you by Data Center Knowledge
IBM has acquired Cloudigo, a data center networking startup based in the Tel Aviv area.
Little public information is available about Cloudigo’s technology; information on its website has been replaced by a notice of the acquisition.
Related: Cloud by the Megawatt: Inside IBM’s Cloud Data Center Strategy
John Considine, GM of cloud infrastructure services for IBM Watson and Cloud Platform, wrote in brief a blog post earlier this month that the startup focused on “advanced networking technology that moves the networking function from the server to the edge, increasing data center efficiency.”
The Cloudigo team will work in IBM’s Cloud Innovation Lab, part of the company’s Cloud Infrastructure group, he said.
Gal Sagie, Cloudigo founder and CTO, said in a LinkedIn post that his company was “joining an incredible team with an important mission to make networking infrastructure great in hyper scale.”
Terms of the transaction or its targeted closing date were not disclosed.


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2016 was a record year for large HIPAA breaches, with covered U.S. healthcare entities reporting 133 cases that affected the private information of at least 500 individuals each.
This year is on pace to more than double that figure, with 221 major breaches reported to federal authorities already, as of Sept. 20, government records show.
The 66 percent increase – thus far – is driven by a sharp rise in the number of incidents designated as “Hacking/IT Incident,” which were up 82 percent, to 104 in 2017.
The second most common cause for a HIPAA breach this year was unauthorized access or disclosure, which totaled 69 cases.
An MSPmentor review of records maintained by the U.S. Department of Health and Human Services Office of Civil Rights (OCR) suggests hackers are stepping up attacks against healthcare targets, which hold the holy grail of data: Detailed medical information.
Healthcare records represent some of the most valuable data to hackers because in addition to names, addresses and Social Security numbers; they contain health insurance numbers and detailed treatment information that can be used in medical billing scams.
Where a record with a name and Social Security number might sell for between $1 and $3 each on the dark web, a detailed medical record could fetch as much as $100, according one recent report.
OCR officials did not immediately respond to a request for that agency’s interpretation of the trends in HIPAA


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That didn’t take long.
A week after Amazon Web Services (AWS) announced per-second billing for EC2 and EBS instances, Google said that starting Tuesday, per-second billing is available on a number of its cloud services, including Compute Engine.
Paul Nash, group product manager, Compute Engine, said that its per-second billing option is now available on Compute Engine, Container Engine, Cloud Dataproc, and App Engine flexible environment VMs.
“These offerings join Persistent Disks, which has been billed by the second since its launch in 2013, as well as committed use discounts and GPUs; both of which have used per-second billing since their introduction,” Nash said in a blog post. 
The changes come shortly after Google introduced network tiers which allow customers to save money by opting for less performance.
Unlike AWS’ per-second billing, which is only available to instances running Linux, Google per-second billing is applicable to all VMs, including Preemptible VMs and VMs running Windows Server, Red Hat Enterprise Linux (RHEL) and SUSE Enterprise Linux Server.
“In most cases, the difference between per-minute and per-second billing is very small — we estimate it as a fraction of a percent,” Nash said. “On the other hand, changing from per-hour billing to per-minute billing makes a big difference for applications (especially websites, mobile apps and data processing jobs) that get traffic spikes. The ability to


Web hosting provider Hivelocity has acquired IaaS provider Rack Alley, picking up a significant data center presence in Los Angeles. Rack Alley’s facilities will be integrated with Hivelocity, and all employees will be retained, according to the announcement last week.
Like Hivelocity, Rack Alley provides colocation, dedicated servers and cloud hosting.
The Los Angeles facilities consist of two data centers across the street from each other, which will operate as one facility interconnected via redundant dark fiber rings, with the ability to operate independently. One of the data centers is located in the One Wilshire Building, which 30 percent of the traffic between the U.S. and Asia travels through, and is one of the top ten network connected building in the world, according to Data Center Knowledge.
“We surveyed our customer base earlier this year and LA was high on their list of places they wanted us to expand to,” Rick Nicholas, VP of Colocation at Hivelocity said in a statement. “In addition to Los Angeles, New York City was right there at the top of the list. As part of our national expansion strategy we intend to seek opportunities in New York City with the hopes of an announcement there before the end of this year.”
Hivelocity recently launched its second data center in the Tampa area to provide 30,000 more square feet of bare-metal dedicated servers, private cloud environments and colocation, and also serves customers out of Miami and Atlanta.


(Bloomberg) — Following record results that flagged the growth of its cyber security business, Deloitte LLP has revealed that it has been successfully targeted by a cyberattack that let hackers access data from an internal email platform.
The auditing and consulting firm said in a statement Monday that it’s currently informing the clients affected and has notified governmental authorities after it became aware of the incident.
Deloitte said “very few” clients were impacted, and has drafted outside help to review its security. The hack was first reported by The Guardian.
The email platform was stored on Microsoft’s Azure cloud platform, according to The Guardian. A spokeswoman from Microsoft declined to comment.
The U.K.-domiciled firm offers a range of consultancy services to blue-chip clients, and earlier this month posted record revenues of $38.8 billion for the fiscal year ended 31 May. Deloitte flagged that its Risk Advisory business has seen increasing demand for cybersecurity advice, and the company had launched a number of Cyber Intelligence Centers that offer clients constant threat analytics and management.
Although nowhere near the same scale, the hack follows the infiltration of Equifax Inc, where attackers accessed personal data for as many as 143 million U.S. consumers.
Regulators are facing their own challenges in their attempts to monitor hacks. The U.S. Securities and Exchange Commission this month disclosed that cybercriminals


(Bloomberg) — Advances in artificial intelligence should be used to help humans and machines work together, rather than to create competition between them in everything from chess matches to the job market, Microsoft Corp. Chief Executive Officer Satya Nadella writes in his new book, “Hit Refresh.”
“The first choices we get to make are choices around the design of AI, and let’s make that first design choice to augment human capability,” instead of seeking ways to have technology replace people, Nadella said in an interview Monday, a day ahead of the book’s release. He cited a Microsoft project that uses computer vision to aid blind users as one example. “Our goal should be to find more and more examples of such sort.”
Realizing that ideal is going to take a lot of work, he says. Like U.S. President John F. Kennedy’s commitment to land the U.S. on the moon in the 1960s, the technology industry and its funders need to set a goal for AI that is “sufficiently bold and ambitious, one that goes beyond anything that can be achieved through incremental improvements to current technology,” writes the 50-year-old Nadella. To get there, he calls for greater cooperation on AI among the influential companies in the industry, including Microsoft, the world’s largest software maker and a player in AI research for more than two decades. ”Advancing AI to this level will require an effort even more ambitious than a moon shot,” he writes. Nadella

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