Strong cloud growth is expected, despite recent slowdown, T-Mobile gets a 5G boost with Sprint acquisition and Congress sets its sights on big tech regulation

August 6, 2020 | Posted by: Jin Woo

Published every Thursday, The Blue Print recaps the industry’s most intriguing news, unexpected shifts and developing trends that are defining the business and technology landscape.

SDxCentral: Amazon Still Dominates Cloud, But AWS Growth Slows
Amazon still dominates the cloud with 33% market share during the second quarter, but the overall growth of its Amazon Web Services (AWS) cloud business slowed slightly during the quarter. AWS revenue hit $10.8 billion in Q2, which was up 29% year over year but down slightly from the 33% growth it reported in Q1. “This is now a $43 billion annualized run rate business, up nearly $10 billion in run rate in the last 12 months,” said Amazon CFO Brian Olsavsky on a call with analysts. “Customer usage remains strong, although growth varies across industries as a result of the COVID-19 crisis.” When asked about AWS’ slowing growth, Olsavsky said customers are looking to cut costs, “especially in the more challenged businesses like hospitality and travel but pretty much across the board.”

Why It Matters: While cloud spending in the first quarter of 2020 was strong, Q2 showed a decline in the first full quarter of the pandemic. Despite hope that COVID-19 was contained, the pace of new cases and outbreaks in hot spots are forcing organizations to look for additional cost cutting measures, especially in industries that have hard hit. Organizations are bracing for a delicate balance of controlling costs and preparing for future projects.

Tags: Amazon, AWS, cloud

Forbes: 32% Of IT Budgets Will Be Dedicated To The Cloud By 2021
The survey covers enterprises’ cloud services’ current usage rates and plans, cloud investments and business drivers. The survey also quantifies the rate enterprises are shifting services and applications to the cloud. 81% of enterprises have at least one application or a segment of their computing infrastructure in the cloud today. In 18 months, it’s predicted 22% of all enterprises surveyed will be running entirely on cloud infrastructure and applications. 43% of all enterprise IT leaders say greater platform and service flexibility is the most valuable benefit from using multiple public cloud platforms. Data privacy and security challenges are the greatest obstacles enterprises are facing today when attempting to take full advantage of public cloud resources. Nearly half (42%) of large-scale enterprises say that the perceived lack of data privacy and security is their greatest challenge in getting the most value from adopting a public multi-cloud strategy. 50% of enterprises with over 1K employees are running Kubernetes today. Just 21% of enterprises with 1K or less employees are.

Why It Matters: The vast majority of organizations have at least one workload in the cloud but large enterprises are much further along in its cloud journey as indicated by cloud spend, percentage of IT budget spend and Kubernetes adoption. Data privacy and security challenges remain the biggest obstacle to cloud adoption.

Tags: cloud, data privacy, security, Kubernetes

SiliconAngle: How cloud-native observability is transforming enterprise technology
In the world of information technology operations, observability extends the principles of IT monitoring by pulling together data from logs, metrics, traces and events to empower operators to identify root causes of issues and resolve them quickly. Cloud-native observability, in turn, extends these capabilities to Kubernetes and, by extension, the full gamut of multicloud hybrid IT. Cloud-native observability is not only relevant to organizations that are implementing Kubernetes, however. As cloud-native computing represents a paradigm shift in enterprise IT, the observability part of the story also reflects new ways of leveraging technology to manage increasingly complex IT infrastructure.

Why It Matters: While observability is quickly gaining momentum in the vendor community, enterprises are still struggling with simplifying how to reduce mean time to resolution as its infrastructure that is increasingly cloud-dependent grows in complexity.

Tags: cloud-native, enterprise, Kubernetes, observability

FierceWireless: Intel, VMware collaborate on vRAN
Intel and VMware are working together on an integrated software platform for virtualized Radio Access Networks (RAN). Their collaboration seeks to simplify the steps and reduce the integration effort involved in creating virtualized RAN solutions. For their collaboration, the partners will use Intel’s FlexRAN software reference architecture and a VMware RAN Intelligent Controller (RIC) for developers to create radio network functions for things such as real-time resource management, traffic steering and dynamic slicing as well as new 5G vertical use cases.

Why It Matters: Extending the benefits of virtualization into Radio Access Networks helps communication service providers(CSPs) decrease operational costs and speed bringing 5G services to market while overcoming complexity. The increased agility also enables CSPs to create more innovative services at the edge. This news follows Nokia and Samsung that recently made similar announcements.

Tags: Intel, VMware, RAN, vRAN, 5G, Deutsche Telekom, Vodafone, AT&T and Orange

Fortune: Rackspace shares tumble 20% on first day of trading after IPO
Shares of business technology company Rackspace tanked on Wednesday following an initial public offering, just like they did in 2008 after a previous IPO. Rackspace shares fell over 20% to $16.17, a similar performance to their first day of trading 12 years ago. Similar to how the nation’s economy was reeling from the Great Recession when Rackspace originally went public, the business world is now suffering in the wake of the coronavirus pandemic.

Why It Matters: Unable to compete with Amazon, Microsoft and Google in the public cloud market, Rackspace has repositioned itself since going private in 2016. The company made a series of acquisitions while trying to rebrand itself as a multicloud solutions provider. Its second IPO is being called by many the worst of the year and the company’s S-1 filing stated 85% of the IPO cash will go toward paying down debt. In 2019 the company reported a net loss of $102 million and in the latest quarter will report net loss of $24 to 44 million.

Tags: Rackspace, IPO, Apollo Global Management

Fox News: Sprint stores get rebrand, begin operating under T-Mobile brand
Sprint retail stores nationwide are getting a fresh look this week as they officially begin to operate under the T-Mobile brand beginning Sunday. The move follows the completion of a $26 billion merger agreement between the two companies. According to T-Mobile, the merger with Sprint will allow the company to “deliver a 5G network second to none and be a supercharged Un-carrier with the ability to up-level competition and better compete on price.”panies in April to create a new wireless giant to take on competitors Verizon and AT&T.

Why It Matters: The real story is not that storefronts are getting rebranded but that T-Mobile acquired 2.5 GHz spectrum from Sprint to better compete against AT&T and Verizon, especially as 5G gets rolled out nationwide. This should translate to better pricing for consumers. For tech companies this means helping service providers operate their networks at a lower cost and simplifying the network operations and management will be a huge opportunity.

Tags: Sprint, T-Mobile, 5G, spectrum, Verizon, AT&T

eWeek: Why Congress is Getting Closer to More Regulation of Big Tech
Congressional hearings about major technology companies have been going on for years. Most of the time the hearings have revealed that members of Congress know little about the issues relating to the technology business, and as a result the hearings were ineffectual and the outcome predictable. This year was different. For the past year, the big tech companies have been complying with congressional records requests, resulting in millions of pages being sent to the staff of the House Committee on the Judiciary. Staffers have been spending their time going over the resulting evidence, briefing the committee members and preparing questions. Perhaps even more important was the bipartisan nature of the proceedings.

Why It Matters: We live in a more complex technology vendor landscape where the lines are blurring and there is more competition to serve the individual industries and consumer groups. That makes ensuring privacy, adtech practices and antitrust issues that much more convoluted.

Tags: Amazon, Apple, Facebook, Google, Microsoft, antitrust, privacy