Tag Archives: market

Vendors vie for a piece of the SD-WAN market share pie

Most industry watchers still consider the software-defined WAN market an emerging one. This makes sense, given SD-WANs currently account for only a small percentage of enterprise networks. There are signs SD-WAN market share is increasing and maturing, however. The first is the recent merger-and-acquisition activity: Cisco acquired Viptela, and VMware scooped up VeloCloud. The other sign is the vendor landscape has started to settle down, with a few clear leaders in the pack.

Recently, Cliff Grossner, senior research director of cloud, data center and SDN at London-based IHS Markit, released his data center networking equipment quarterly market tracker for the first quarter of 2018. This report covers a wide variety of technology, including SD-WAN.

Editor’s note: The IHS report referenced in this article focused on the SD-WAN vendors that sell SD-WAN appliances and accompanying control and management software to gain revenue, excluding those that offer subscription licensing or software-only approaches. The total SD-WAN market share for the first quarter of 2018 reached $162.1 million.

VMware-VeloCloud and Aryaka battle for the top

The most notable point in the IHS report is a two-horse race is emerging. This quarter showed VMware-VeloCloud with 19% of SD-WAN market share — the same it had in the fourth quarter of 2017. In the meantime, Aryaka — an SD-WAN provider with its global private network — moved to 18%, up 1% from last quarter.

With only 1% separating the two, VMware and Aryaka are now neck and neck for market leadership. It would be easy to assume VMware’s size and channel would allow it to break away from the competition, but VMware has stumbled in networking since it acquired SDN vendor Nicira. The company wisely left the VeloCloud brand in place, as it was one of the premier names in the SD-WAN space.

Aryaka has a solid grip on the No. 2 spot in the SD-WAN market and has a chance to jump into the top spot if VMware-VeloCloud stumbles with any integration challenges. Aryaka has a unique offering that uses its global private network instead of the public internet, making it the product of choice for global companies.

One of the perceived advantages of SD-WAN is its use of internet connectivity for transport. This might work when connecting from New Jersey to Chicago, but a global company that needs to make a Dubai-to-Seattle video call will experience much better quality riding Aryaka’s private network, compared with making a bunch of internet jumps. In his report, Grossner pointed out that Aryaka customers have seen a significant performance boost for cloud-based applications, like Office 365.

Silver Peak and Cisco-Viptela vie for position

Expect to see this as a highly contested market over the next few years.

Silver Peak edged Cisco-Viptela out of the No. 3 spot in the SD-WAN market, with just under $1 million more than Cisco in first-quarter 2018 revenue. There’s no question Silver Peak has done a great job of making the pivot to SD-WAN from WAN optimization and is all-in on SD-WAN. Its EdgeConnect product lets customers move to a hybrid network, then quickly migrate to an all-broadband WAN. Most of Silver Peak’s revenue comes from enterprises, but it has been building a stronger book of business with service providers.

Cisco’s position in SD-WAN is curious, as its success with Viptela is bad for its Integrated Services Router (ISR) business unit — one of the largest revenue sources for the company. In the past, Cisco would have done everything in its power to fight the SD-WAN tide, but CEO Chuck Robbins is directing Cisco to be much more in tune with what customers want versus what Cisco wants customers to want. I believe Cisco will be willing to cannibalize its ISR base to win SD-WAN business. Currently, Cisco has only 12% of SD-WAN market share, but I expect it to be a major player over time.

These four vendors are the only ones with at least 10% of the SD-WAN market share, according to IHS. Outside of these four, the largest amount of revenue in Grossner’s numbers comes from the “other” category. I expect to see more consolidation in that area, with one of the current leading vendors — or perhaps another following behind — rolling up several smaller vendors to gain share.

For now, VMware remains in the top spot, with Aryaka nipping at its heels. Expect to see this as a highly contested market over the next few years. This should benefit customers, as the vendors will push each other on innovation and bring more features to market faster. The SD-WAN market is real, and it is showing signs of maturity, but don’t expect it to slow down.

HPE partners urged to tackle the ‘Super Six’ market opportunities

LAS VEGAS — At the HPE Global Partner Summit 2018, Hewlett Packard Enterprise laid out six market opportunities it wants to jointly pursue with channel partners.

HPE executives said half of the “Super Six” opportunities are ripe for HPE partners to immediately capture and half involve more long-term strategies and investments. The short-term opportunities include Gen10 servers, blade servers and all-flash arrays, HPE said. The forward-looking opportunities center on everything as a service, software-defined infrastructure and the intelligent edge.

“What the Super Six represents are six huge transitions that we see happening right now in the marketplace,” said Phil Davis, chief sales officer at HPE, at this week’s Summit.

He said HPE has been busy transforming its portfolio to align with Super Six opportunities, which he said collectively makes up a $65 billion market. Additionally, the company has received clear signals from its customer base the Super Six represents areas to double-down on. “The accelerated growth rates that we are seeing in these areas absolutely prove [the Super Six] is where our customers see … value,” he said.

Short-term opportunities for HPE partners

Davis described HPE’s immediate Super Six opportunities as having about a two- or three-year window that partners can exploit if they act fast.

Gen10 transitions: Customer refreshes to HPE’s Gen10 servers amount to about a $20 billion opportunity, Davis said. He noted that HPE partners that lead with HPE OneView, the vendor’s converged-infrastructure management platform, have “a great opportunity to refresh our own, as well as competitive environments.”

OneView “delivers a substantially differentiated experience for our customers in terms of ease of deployment of infrastructure in terms of automation of routine tasks, in terms of being able to take costs out,” he said. He noted that HPE recently shipped its one millionth OneView license.

Blades: Davis asserted that HPE essentially invented the server blade category and has led in it for every quarter.

It is critical that we lead with everything as a service [and] we lead with a consumption model with HPE GreenLake because it is what customers want.
Phil Davischief sales officer, HPE

The second strongest player in the market, Cisco, with its Unified Computing System (UCS) technology, is decreasing its focus on the blades market, he said. “If you watch what is going on with [Cisco’s] investments, it really seems like they are pulling back,” Davis said. “We haven’t seen the same pace of innovation for them and it looks like they are doubling-down on security and other places. It looks like Cisco isn’t looking to invest in the future.”

He said the server blades market represents a $6 billion opportunity for HPE and its partners and it’s “all coming up for grabs right now.”

Flash storage: As a $7.7 billion market growing at 15%, the transition to all-flash storage is “a huge opportunity” for HPE partners to disrupt, Davis said.

Among HPE’s differentiators in the flash market is its InfoSight predictive analytics technology, which HPE gained through its Nimble Storage acquisition. Now deployed in all HPE storage systems, InfoSight uses machine learning and AI to predict and remediate storage environment issues.

Davis said HPE has looked to gain a strong position by recently rolling out the HPE Store More Guarantee for the Nimble all-flash array. Launched in March, Store More Guarantee promises customers that the Nimble product “will store more data per raw terabyte of storage than any other vendor’s” all-flash array, according to HPE. The guarantee states that HPE will accommodate the customer’s additional storage for free if HPE Nimble all-flash array fails to meet the storage efficiency of a competitor’s array.

Long-term HPE partner plays

HPE’s Super Six long-term technology opportunities focus on generational changes occurring within customer organizations. Davis said these changes will be “long-lasting over the next three, five, maybe 10 years.”

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HPE executives discuss the flash storage market
at the Discover 2018 conference.

Everything as a service: HPE recognizes that the public cloud has transformed customer expectations of how IT should operate. The main expectations are that IT should be scalable and customers should pay only for what they use, Davis said. HPE’s solution for this market trend is HPE GreenLake consumption-based services delivered by HPE Pointnext. The company unveiled a partner program for HPE GreenLake Flex Capacity services on Monday.

“It is critical that we lead with everything as a service [and] we lead with a consumption model with HPE GreenLake because it is what customers want,” Davis said.

Software-defined infrastructure: HPE said it is looking to deliver an on-premises yet public cloud-like experience for customers at lower pricing compared with cloud. Core to that aim is the vendor’s software-defined strategy, which Davis said partners can think of as “going hand in hand” with HPE’s everything-as-a-service focus.

To cash in on the opportunity, HPE partners need to start customer conversations with HPE OneView, which manages the data center’s software-defined systems, he said. Synergy, HPE’s composable infrastructure platform, is another important piece for capturing the opportunity. Synergy “is really one solution for all of your customers’ workloads, whether they are virtualized, bare-metal [or] containers. It really gives a very flexible, automated experience to your customers with the maximum efficiency of resources,” he said.

HPE’s acquisition of Plexxi plays an important role, providing hyper-converged networking technology. “What [Plexxi] enables us to do is put that same composability that you have come to love in Synergy into hyper-converged,” he said.

Intelligent edge: The intelligent edge was a main area of focus at its Discover conference, held in conjunction with GPS. HPE revealed it would invest $4 billion over the next four years in intelligent edge technology and services.

“This is a massive, disruptive opportunity that we see,” Davis said, adding that the total addressable market is expected to reach $26 billion by 2020.

Antonio Neri, HPE’s president and CEO, told HPE Global Partner Summit 2018 attendees that “most of the data … is now generated on what we call ‘the edge.'” Seventy-five percent of data is generated on the edge, he added.

The edge is where “we live and work, where billions of people and trillions of things come together, interacting with each other but most importantly interacting with data in a secure way,” Neri noted. “That’s the opportunity: In this sea of 1s and 0s, how do we create value?”

Davis pointed to HPE’s Aruba Network’s portfolio as the means for HPE partners to jump into the intelligent edge market. Additionally, though HPE’s acquisition of Niara, Aruba IntroSpect user and entity behavior analytics technology can play a role.

“We see opportunities in every industry, everywhere around the globe,” Davis said.

Data migration software coming for SAP CRM

ORLANDO — The goal of every major CRM vendor is to gain more of the market share and potentially capture customers from competitors. But doing that can prove difficult for a number of reasons, including organizations relying on legacy systems, challenges with data migration and the cost associated with migration.

Along with unveiling C/4HANA, SAP’s new suite of applications that it says will provide that full 360-degree view of the customer, the company also told SearchCRM.com you can expect data migration software to help automate that migration process from SAP later this year.

In this Q&A from Sapphire Now, Giles House, EVP and chief product officer for SAP Customer Experience talks about the future of CRM within the SAP sphere, as well as what customers of CallidusCloud can expect from the product. SAP bought CallidusCloud earlier this year, putting the finishing touches on its C/4HANA suite. House was chief product officer and chief marketing officer for CallidusCloud before its acquisition by SAP.

Beyond tying together the front- and back-office processes of C/4HANA, SAP hopes that adding data migration software to the suite later this year will help persuade unhappy CRM customers to migrate.

After the CallidusCloud sale, can customers expect anything different with CallidusCloud? What should they look for? Has there been any concern from non-SAP customers?

Giles House: An obvious one is tighter integration with SAP — Callidus was a great partner with SAP for many years and, more recently, the last couple years, SAP rolled it out internally. The biggest thing for those customers is, through us, a lot more investment in technology and innovation.

We’ll still be open and talk with other CRMs, and the answer is absolutely. In the modern world, have to recognize there are sales departments making their people suffer in other systems. We have to make sure they get the best incentives and CPQ [configure price quote] platform on the market.

How do you convince potential customers that you’re not lagging behind in CRM?

House: The intent, the acquisitions and the fact we’ve got these integrations in already two months after the sale closed starts to show progress and give people confidence. As we get through the rest of this year, you’ll see a completely different conversation happening around SAP CRM and the product itself.

Giles House, EVP and chief product officer for SAP Customer Experience
Giles House, SAP

The reason why is simple: there’s $1 billion-plus of churn in the CRM market and about $2 billion of resentment. Many companies want to get off their current, expensive CRM platform because it doesn’t give them that 360-degree view, and every year the sales person comes knocking for a 10% increase in licensing fee.

There’s been a desire to switch, but there hasn’t been something good to switch to because the other propositions are that same patchwork quilt — integrate it yourself, good luck on the analytics. Different for SAP is it will all be integrated and all will be running on the SAP Analytics Cloud and all running on the best cloud platform out there. Not a cloud platform that pays $1 billion to a legacy database vendor like Oracle.

There are software customers that would like to migrate, but data migration software is expensive and the process is challenging. How are you hoping to get them to actually commit to that migration?

[Data migration] can all be automated and that’s another thing we’re bringing out later this year is the automation of that migration.
Giles HouseSAP

House: I think number one is we have to lower that cost. There was a customer where they were quoted it would be eight figures to move. Under the covers, it’s not that hard because what CRM is doing today for a lot of people is not that hard. CRM is a notepad on a database. ‘Here’s what’s going on in the deal, here’s an account of the customer.’ It’s not that hard if you think about it, but we need to help migrate that and automate that migration.

Do the data mapping, make it simple, create the new fields in the new systems and help update the workflows. That can all be automated and that’s another thing we’re bringing out later this year is the automation of that migration.

So automating that process from previous CRM systems to C/4HANA with data migration software will be part of the suite?

House: It has to be. We need to automate it — whether that’s using some of the automation technology that we already have at SAP or whether it’s a whole new [data migration software] solution, we need to get the details of that ironed out, but it’s doable and it will be done.

DRaaS solution: US Signal makes rounds in healthcare market

A managed service provider’s disaster-recovery-as-a-service offering is carving a niche among healthcare market customers, including Baystate Health System, a five-hospital medical enterprise in western Massachusetts.

The DRaaS solution from US Signal, an MSP based in Grand Rapids, Mich., is built on Zerto’s disaster recovery software, US Signal’s data center capability and the company’s managed services. The offering is designed to work in VMware vCenter Server and Microsoft System Center environments. One target market is healthcare.

“We have several healthcare facilities … all across the Midwest using this solution,” said Jerry Clark, director of cloud sales development at US Signal. The DRaaS solution meets HIPAA standards, according to the company.

Clark said many hospitals — and organizations in other industries, for that matter — are searching for ways to avoid the investment in duplicate hardware traditional DR approaches require. With DRaaS, hardware becomes the service provider’s issue. Instead of paying for hardware upfront, the customer pays a monthly management fee to the DRaaS provider. The approach has expanded the channel opportunity in DR.

“Enterprises … run into the same situation: ‘Do we spend all this Capex on disaster recovery hardware that may or may not ever get used?'” Clark noted. “A DRaaS solution makes it much more economical.”

Chart showing anticipated budget growth across various IT sectors
One-third of the respondents to TechTarget’s IT Priorities survey identified disaster recovery as an area for budget growth.

Baystate Health adopts DRaaS solution

US Signal found an East Coast customer, Baystate Health, based in Springfield, Mass., though VertitechIT, a US Signal consulting partner located in nearby Holyoke, Mass.

Jerry Clark, director of cloud sales development at US SignalJerry Clark

VertitechIT helped Baystate Health launch a software-defined data center initiative. The implementation uses the entire VMware stack across three active data centers. The three-node arrangement provides local data replication, but David Miller, senior IT director and CTO at Baystate Health, said an outage in 2016 knocked out all three sites — contrary to design assumptions — for 10 hours.

Miller said his organization had been looking into some form of remote replication and high availability but had yet to land a good solution. The downtime event, however, increased the urgency of finding one.

“We realized we had to do something now rather than later,” Miller said.

David Miller, CTO at Baystate Health SystemDavid Miller

VertitechIT introduced US Signal to Baystate Health. The companies met in VertitechIT’s corporate office and US Signal proposed its DRaaS solution. In its DRaaS solution, US Signal deploys Zerto’s IT Resilience Platform, specifically Zerto Virtual Manager and Virtual Replication Appliance. The software installed in the customer source environment replicates data writes for each protected virtual machine to the DR target site, in this case US Signal’s Grand Rapids data center. An MPLS link connects Baystate Health to the Michigan facility.

The remote replication service provides the benefit of geodiversity, according to the companies. Baystate Health’s data centers are all in the Springfield area.

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CIO of Christian Brothers Services discusses the
company’s infrastructure partnership with US Signal.

US Signal’s DRaaS solution also includes a playbook, which documents the steps Baystate Health IT personnel should take to failover to the disaster recovery site in the event of an outage. In addition, US Signal’s DRaaS package provides two annual DR tests. The DRaaS provider also tests failover before the DR plan goes into effect and documents that test in the playbook, Clark noted.

Miller said the DR service, which went live about a year ago, provides a recovery point objective (RPO) of “less than a couple of minutes” for Baystate Health’s PeopleSoft system, one of the healthcare provider’s tier-one applications. The recovery time objective (RTO) is less than two hours. RPO and RTO characteristics differ according to the application and its criticality.

Initially, the DRaaS solution covered a handful of apps, but the list of protected systems has expanded over the past 12 months, Miller said.

A DRaaS ‘showcase’

Myles Angell, executive project officer at VertitechIT, said the Baystate Health deployment has become “a showcase” when meeting with potential clients that have similar DR challenges.

Myles Angell, executive project officer at VertitechITMyles Angell

“We’re talking to other hospitals about it,” he said.

Other organizations interested in DRaaS should pay close attention to their application portfolios, however. Angell said businesses need to have a thorough understanding of applications before embarking on a DR strategy.

“To successfully build a disaster recovery option — and have confidence in the execution — relies on complete documentation of the application’s running state, dependencies and any necessary changes that would need to be executed at the time of a DR cut over,” he explained. “These pieces of information are vital to knowing how to adhere to the RTO/RPO objectives that have been defined.”

Angell said businesses may have a good understanding of their tier-one applications but may have less of a handle with regard to their tier-three or tier-four systems. The recovery of an application that isn’t well-documented or completely understood becomes a riskier endeavor when a disaster strikes.

“The DR option may miss the objectives and targets that the business is expecting and, therefore, the company may actually be worse off due to lost time trying to scramble for the little things that were not documented,” Angell said.

New Apple Health Records API may make a PHR app easier

Apple’s decision to open its Health Records API to developers could jump-start the market for truly personalized healthcare applications. But experts warned the announcement is just the first step in a lengthy process of electronic and personal health record integration, and significant challenges — from privacy issues to interoperability — remain.

At a time of rising consumer demand for increased control of and access to personal health records (PHR), Apple is the first major player to offer an open API. And this is just the latest of the company’s moves into the health IT space. For some, this step could be a game changer.

Wolfram Kerl, CTO at Munich-based Smartpatient, was an early user of Apple’s new Health Records API in the company’s MyTherapy medication management PHR app.

“Until today, healthcare IT and health apps have been largely separate worlds, only talking to each other in proprietary environments,” Kerl explained in an email. “With the introduction of Health Records early this year, Apple started connecting iPhones to clinical systems using the FHIR [Fast Healthcare Interoperability Resources] industry standard. Now, by opening the API, developers for the first time can implement patient use cases with electronic health records, while getting access to a potentially huge installed base.”

Go custom or go home

This means developers now have the opportunity to easily create a customized PHR app, which is a big departure from the one-size-fits-all strategy in use today, said John Moore, founder and managing partner of Chilmark Research, based in Boston.

With Apple doing all the legwork to connect the different hospitals, we can focus our developers on the patient’s user experience.
Wolfram KerlCTO at Smartpatient

“The open API is going to enable a longitudinal patient record, and that creates an opportunity for precision medicine using digital tools,” Moore said. “When you have an opportunity to look at individual records and know social determinants and a number of other factors, I think the applications can use that record to help guide you to a much richer experience, and one that’s personalized to your individual health situation.”

To look at it from a slightly different perspective, consumers want to interact with their health data as easily as they shop online. The new API could help give a PHR app that retail feel, Kerl said. “With Apple doing all the legwork to connect the different hospitals, we can focus our developers on the patient’s user experience.”

But will a personalized PHR app be sufficiently secure? Apple’s announcement indicated the company won’t access or store personal health data shared with any apps created from the Health Record API. Instead, sensitive information will remain on an individual’s iPhone. That’s no guarantee an application is HIPAA-compliant, however.

An iPhone with an image of a personalized healthcare application.
Apple offers the potential to personalize health apps using the new Health Records API.

“In the wake of Facebook data concerns, consumers and developers alike need to be cautious and put safeguards in place when it comes to consumer data,” warned Arielle Trzcinski, a senior analyst with Forrester Research. “There’s really sensitive information in there. People need to proceed with caution.”

Proceed with caution toward PHR apps and perhaps a good dose of patience, Kerl advised. This is just a small step toward solving the massive interoperability issues in the healthcare world.

“Healthcare IT is full of interoperability problems. And, so far, the Health Records API just gets data from the hospital to the patient,” he said. “The next frontier is the patient using this data with other providers, too. So, while the Health Records API does nothing to directly solve interoperability problems, it does provide a significant incentive for the healthcare industry to commit to FHIR and tackle the obstacles that still remain.”

Versa SD-WAN counts progress in customer wins, not ‘dollars’

Success in the software-defined WAN market means more than revenue, at least according to one SD-WAN exec, who backs his claim by touting the number of licenses his firm has obtained since 2012.

“While others are talking about their progress in dollars, we’ve been quietly progressing in winning service providers and enterprises and getting them under contract,” said Kelly Ahuja, CEO and president of Versa Networks, based in San Jose, Calif.

Versa counts more than 150,000 global contract licenses since the firm was founded six years ago. Versa SD-WAN customers include enterprises, as well as more than 50 service providers, including Verizon, Comcast Business, CenturyLink and China Telecom.

Yet “progress in dollars” remains a key metric, according to market watcher IHS Markit, which reported 2018 second quarter SD-WAN revenues reaching $162 million, a 12% jump from over a year ago.

The IHS Markit report ranked VeloCloud — acquired by VMware in 2017 — as segment leader, with 19% market share. Aryaka and Silver Peak trailed, recording shares of 18% and 12%, respectively.

Kelly Ahuja, CEO of Versa NetworksKelly Ahuja

Versa SD-WAN wasn’t listed in the IHS report, which included appliances and control and management software as part of the revenue numbers. But Ahuja said revenue is just one dimension of market traction, as vendor products and offerings widely vary. Versa numbers and revenue, for example, don’t include hardware, as the company is subscription only, he added.

“Our traction in terms of the number of licenses [we have] should speak for itself about how well we’re doing in the market,” Ahuja said.

Our traction in terms of the number of licenses [we have] should speak for itself about how well we’re doing in the market.
Kelly Ahujapresident and CEO of Versa Networks

Versa Networks offers three types of license tiers: standard, advanced and secure SD-WAN. The secure SD-WAN service comes with a next-generation firewall and unified threat management and accounted for about 70% of the 150,000 licenses, Ahuja added. Further, customers can purchase Versa SD-WAN licenses based on throughput requirements, which ranges depending on customer type.

“A lot of our business is business to business — to service providers that then sell to enterprises,” he said. “Their customers are typically financial, transportation, retail, hospitality and healthcare.”

Ahuja said the majority of enterprises Versa serves consists of organizations with large internal IT teams that can deploy and manage the service themselves. These include global oil and gas companies, brand-name technology vendors, retailers, and banks and financial firms such as Capital One.

Mining Rig – 6×1060

We’ve just listed our house on the market, so I can do without the hassle of moving this. hence sale.

All of the GPU have Samsung memory – which is the best you can get for mining/overclocking.

Full details below, including original purchase costs.

[​IMG]

£1100 collected from Solihull, but I travel around the UK a fair bit, so can arrange to meet.

BACS payment….

Mining Rig – 6×1060

Mining Rig – 6×1060

We’ve just listed our house on the market, so I can do without the hassle of moving this. hence sale.

All of the GPU have Samsung memory – which is the best you can get for mining/overclocking.

Full details below, including original purchase costs.

[​IMG]

£1100 collected from Solihull, but I travel around the UK a fair bit, so can arrange to meet.

BACS payment….

Mining Rig – 6×1060

Mining Rig – 6×1060

We’ve just listed our house on the market, so I can do without the hassle of moving this. hence sale.

All of the GPU have Samsung memory – which is the best you can get for mining/overclocking.

Full details below, including original purchase costs.

[​IMG]

£1100 collected from Solihull, but I travel around the UK a fair bit, so can arrange to meet.

BACS payment….

Mining Rig – 6×1060

Mining Rig – 6×1060

We’ve just listed our house on the market, so I can do without the hassle of moving this. hence sale.

All of the GPU have Samsung memory – which is the best you can get for mining/overclocking.

Full details below, including original purchase costs.

[​IMG]

£1100 collected from Solihull, but I travel around the UK a fair bit, so can arrange to meet.

BACS payment….

Mining Rig – 6×1060