Apple Talks New Datacenters
Apple is one of AWS’ biggest customers, surpassing other large companies like Lyft and Pinterest. Recently, it was reported that Apple spends more than $30 million on AWS products and services every month, up 10% over last year. At this rate, Apple will be on track to spend more than $360 million a year on AWS. Apple has a multi-year deal with the cloud giant that requires them to spend at least $1.5 billion on AWS over the course of 5 years.
Apple’s high expenses for cloud could be what is prompting them to begin investing in their own datacenters. In January of last year, they announced that it had plans to spend $10 billion on data centers in the U.S. within the next 5 years. Later that year in December, they followed by saying that planned to spend $4.5 billion during 2019. According to Liftr Principal Analyst Paul Teich, “When a software as a service grows to a really large size, cloud purchasing and operating efficiency improvements level out. At that point, a SaaS provider might be better off operating its own cloud and not paying an overhead margin to a CSP to operate a cloud for them.”
It appears that Apple might agree. On a job posting on Apple’s career page for a Senior DevOps Engineer position, the company specifically states in the job description that one duty of the job is “Lead and architect our growing AWS footprint.” Apple also has another major project in the works, their new 133-acre campus, which will find its home right here in Austin, Texas. The $1 billion investment is the beginning of a string of new proposed campuses, in cities such as Seattle, San Diego, and Culver City.
Huawei Releases First Quarterly Report
For the first time in company history, Huawei reported summary quarterly earnings for Q1, as the company only issues annual reports regularly. The company announced its revenue for the first quarter of 2019 was CNY179.7 billion, an increase of 39% year-on-year.
One possible motivation for the uncharacteristic quarterly report could be to demonstrate that the company is growing substantially despite the United States’ aggressive stance towards blocking Huawei in North America, the UK, and Europe.
Alibaba Cloud’s Customer Sentiment
Alibaba Cloud ranked first in Asia Pacific according to a Gartner report about IaaS share in Asia Pacific for 2018. The company placed Global top three and APAC number one for the 2nd consecutive year. According to the report, Alibaba Cloud led the Asia Pacific market for IaaS and IUS with 19.6% market share, a +4.7% market share gain from 2017.
Vice President of Alibaba Group and Head of Strategy and Marketing at Alibaba Cloud, Lancelot Guo said, “It is very encouraging that our continued dedication to enabling cloud development across industries in both Asia Pacific and globally has been recognized by world’s leading research and advisory company. As the only global cloud provider originated from Asia, we will continue to champion millions of businesses through our world-class infrastructure, advanced analytics tools and thriving ecosystem.”
Alibaba Cloud has 15 availability zones in the region outside mainland China, covering Hong Kong, Singapore, Australia, Malaysia, Indonesia, India and Japan markets. It is the only global cloud provider that has set up local data centers in Indonesia and Malaysia.
Kata Containers Project Announces Bare Metal Verification
The OpenStack Foundation’s Kata Containers project announced bare metal verification of Kata plus Firecracker running on AWS. With the introduction of Firecracker hypervisor support in Kata Containers, bare metal verification of Kata + Firecracker on AWS has become a priority. The Kata Project is now in the process of migrating Firecracker jobs to AWS.
Kata Containers is an open source community working to build a secure container runtime with lightweight virtual machines that feel and perform like containers but provide stronger workload isolation using hardware virtualization technology.
Paul Teich, Liftr’s Principal Analyst, wrote about this on The Next Platform back in January, in a blog post titled “Containers Killed the Virtual Machine Star”. In it, Teich predicted new enterprise application development will pass a tipping point in 2019, shifting away from legacy virtual machines (VMs) and strongly towards containers and Kubernetes container orchestration. He also speculated that supporting Kata Containers on Firecracker from the OpenStack side might enable movement of Kata Containers between OpenStack deployments on AWS.
Paul is currently attending the OpenStack “Open Infrastructure” Summit in Denver, Colorado, which began today and continues until May 1. We can expect to hear more insights on the matter following his return.
This week Amazon, Intel, Microsoft, and Xilinix reported quarterly earnings, while next week Alphabet and AMD will hold their earnings calls. Subscribe to the Liftr Cloud Index Newsletter to make sure you don’t miss any insights or details.
See you next week!