Snap to pay Google $400M a year for cloud services

Over the next five years, the company behind Snapchat will pay Google at least $ 2 billion in cloud bills.

On Thursday, Snap revealed in a filing with the US Securities and Exchange Commission that it signed a five-year contract to pay Google at least $ 400 million a year for cloud services. That’s a steep figure, considering that Snap made roughly $ 404 million last year. 

In return for the massive commitment, Snap will receive reduced pricing, though it’s not clear how deep the company’s discounts will be. Sinking a bunch of money into Google Cloud makes sense, because Snapchat began its life built on top of Google’s AppEngine platform-as-a-service offering.

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Computerworld Cloud Computing

Google will shore up one of its biggest cloud weaknesses next year

Google is making a major change to its cloud platform infrastructure that will help shore up one of the company’s biggest weaknesses relative to competitors like Microsoft and Amazon.

On Thursday, Urs Hölzle, the company’s senior vice president of technical infrastructure, unveiled eight forthcoming regions around the world for the company’s cloud services. The regions are all slated to launch in 2017 and will be comprised of multiple data centers for companies looking to run high-availability applications.

Having a broad distribution of cloud infrastructure is important to Google’s competitive chances. More and more countries are requiring that some types of data are stored in particular geographic locations. And even with high-speed networks, a large distance between where an application is hosted and where its users are located will lead to a slowdown.

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Computerworld Cloud Computing

IDG Contributor Network: Red Hat expected to rake in $2.4 billion in revenue this year

The king of Linux, Red Hat, continues its growth as a leading Linux vendor that’s betting big on the cloud. Yesterday, the company announced financial results for its second quarter of fiscal year 2017 ended August 31, 2016.

The company generated $ 600 million in revenue for the quarter, a 19 percent year-over-year increase. Red Hat is often credited with creating a business model around Linux and Open Source: a subscription based service and support model.

Subscription revenue for the quarter was $ 531 million, which accounts for 89% of total revenue. It was a 20% year-over-year increase. Based on these numbers we can safely assume that Red Hat will be generating revenues around $ 2.415 billion in this fiscal year. That makes Red Hat the most successful pure open source company to date.

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CIO Cloud Computing

IDG Contributor Network: 2016: The year of IT-driven solutions to business problems

It wouldn’t be the beginning of a new year without two hallmarks: resolutions and predictions. My 2016 resolution is to help companies understand the importance of strong financial management when moving into hybrid clouds. Every day, I’m reminded by examples I hear, read, and experience which remind me that, if you don’t start with a strong financial management foundation, things quickly get out of control in the highly scalable and automated world of cloud.

As for my predictions, they too focus on hybrid cloud. In 2015, we saw the C-suite begin to recognize the pervasive force of both private and public cloud, and 2016 promises to be the year of hybrid cloud as the two merge into a single offering. 

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Network World Cloud Computing

2016: The year we see the real cloud leaders emerge

You can probably rattle off the top enterprise software vendors without thinking: Microsoft, IBM, Oracle, and SAP. According to the best estimates I can find, those four companies together racked up close to $ 140 billion in software revenue in 2015, led of course by Microsoft and its well-known offerings.

Our cloud future will feature a different foursome — Amazon, Microsoft, Google, and IBM — and although public cloud revenues remain a small fraction of those driven by software, growth is by leaps and bounds across the board. AWS, whose long lead seems to grow and grow, pulled in more than $ 7 billion in 2015, a year-over-year expansion rate of around 80 percent.

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InfoWorld Cloud Computing

2015: The tech year in cartoons

January: We have met the enemy, and he is us
cw 2015 01 klossner humanerror onetimeuse rsz

Image by John Klossner, © Computerworld

It seems that security is always at or near the top of the list of things that keep IT leaders awake at night. But while headlines would lead us to believe that CIOs and CISOs are spending the wee hours in search of technological ways to prevent data breaches and keep systems up and running 99.999% of the time, the truth may be different. It’s more likely that they’re trying to figure out ways to change human behavior.

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