AWS re:Invent announcements were in full swing at the conference last week. In addition to all the sessions, workshops, pub crawl, DJ-spinning and all sorts of educational experiences and entertainment options, the technology announcements are really what drive the buzzl. While it’s impossible to cover them all, we picked three big announcements from this year’s AWS re:Invent that will certainly be game-changers:
New EC2 Instance Types
M5 EC2 instances are the next generation of general purpose EC2 instances. As a general purpose instance, its good for the use of running web & app servers, hosting enterprise applications, supporting online games and building cache fleets.
What sets M5 instances apart is that they were made for high-demand workloads, provide a 14% better price performance than M4 instances per core, and designed based on Custom Intel® Xeon® Platinum 8175M series processors running at 2.5 GHz. The new instances comes with a full package of resources allocations, complete with optimized compute, memory, and storage.
H1 EC2 Instances are the latest in storage optimized instances, designed with lots of space for high performance big data workloads. These instances are powered by “Broadwell” – 2.3 GHz Intel®Xeon® E5 2686 v4 processors, offering more memory compared to D2 instances. H1 instances provide low cost storage, high disk throughput, and high sequential disk I/O access to large data sets. They’re designed for data scientists running big data applications like Elastic MapReduce, big workload clusters, data processing applications like Apache Kafka, distributed filing systems, and networking filing systems.
Public Preview of EC2 Bare Metal Instances
AWS customers now have the ability to run workloads on bare metal servers. Peter DeSantis, VP of Global Infrastructure at AWS, calls it the “best of both worlds” because customers can run an operating system directly on the hardware, yet still reap the benefits of using the cloud by paying as they go instead of up-front. The public preview of bare metal instances are ideal in scenarios where workloads needs access to certain hardware features, and workloads with restrictions due to licensing can still benefit from the AWS cloud offerings. The public preview of the i3.metal instance is only the first of an entire series dedicated to bare metal instances, with more in line to roll out over the next few months.
Spot Instance Hibernation
Among several changes announced to AWS spot instances was a notable new feature – hibernation for spot instances. Instead of terminating a spot instance when it is interrupted, it will now hibernate instead, saving all of your data into an EBS volume. The instance will reboot as soon as spare capacity is available for the given instance type. Hibernation is useful because you won’t be charged for using the instance while it’s in hibernation, storage is charged at standard EBS storage rates, and you can still terminate your instances in hibernation by cancelling your bid at any time.
AWS re:Invent announcements are always exciting. As the largest and most successful public cloud provider to date, Amazon keeps us on our toes and continues giving us so much to look forward to. In the ongoing war between the big three cloud providers, these innovations will certainly drive the competition to innovate and provide even better options for enterprises to choose from. As always, we’ll continue to cover new announcements, product launches, and more as AWS continues to innovate and increase their offerings at a frenetic pace.
The ParkMyCloud team has returned energized and excited from our annual trek to Las Vegas and our third AWS re:Invent conference. It’s an eclectic group of roughly 42K people, but we gleaned a ton of information by asking questions and listening to the enterprise cloud do’ers at our booth. These are the people actually moving, deploying and managing cloud services at the enterprises we consume goods and services from. They are also often the one’s that start the ‘cloud first’ initiatives we hear so much about — after all, they led the public cloud revolution to AWS 10+ years ago.
I’m not going to write about all the announcements AWS made at re:Invent2017 related to all the cool kid, popular buzz words like Artificial Intelligence, Machine Learning, Blockchain, Quantum Computing, Serverless Architecture, etc. However, if you do want to read about those please check out this nice recap from Ron Miller of TechCrunch.
Containers are so passé, they did not even make the cool kid list in 2017… but Microservices Architecture did. Huh, wonder if that’s a new phrase for containers?
For ParkMyCloud it’s a great event. We love talking to everyone there – they’re all cloud focused, they are either using AWS exclusively (born in the cloud), or AWS plus another public cloud, or AWS plus private cloud, and in some cases even AWS plus another public cloud and private cloud, thus they are truly ‘multi-hybrid cloud’. We had a ton of great conversations with cloud users who are either prospects, customers, technology partners, MSPs or swag hunters who want learn how to automate their cloud cost control – our nirvana.
There were a ton of Sessions, Workshops and Chalk Talks, and long lines to get into the good ones. It’s up to you to define the good ones and reserve your spot ahead of time.
Of course, it’s not all work and no play. This year for re:Play we had DJ Snake – giddy up! And while you walked your miles through the various casinos there were DJ’s scattered about spinning tunes for you – I describe re:Invent to my friends as an IT event where “millennials meet technology” — definitely not your father’s tech trade show. Having been to many of these IT tech trade shows around the world for 20+ years now, and outside of the Mobile World Congress in Barcelona, re:Invent is hands down the coolest.
Not only because of the DJ’s and re:Play but because there is a real buzz there, people are part of the new world of IT, and the migration of enterprise services to the world’s #1 cloud provider. And of course the Pub Crawl and Tatonka chicken wing eating contest.
AWS is now so big that the Venetian/Palazzo can’t hold everyone anymore, so they have spread over to the MGM, Mirage, and Aria. AWS refers to this collection of locations as it’s ‘campus’ – interesting, the rest of us refer to it simply as Las Vegas :-).
BTW – bring your sneakers. It’s 1.5 miles or a 22 minute power walk, including a few bridges, from the MGM to the Venetian assuming no stops for a cold beverage. Speaking of which, the Starbucks line is crazy.
Oh, and the swag, holy mother of pearl, people literally walk by the booth with large tote bags stuffed full of swag – if you like swag, hit up the expo hall for your fill of tee shirts, hoodies, koozies, spinners, bottle openers, pens, flash lights, memory sticks, chargers, stickers, hats, socks, glasses, mints, Toblerone chocolate, and lots more!
Well, I probably need to tie this blog / rant back to the headline, so in that vein, here are the top three things we learned at this year’s AWS re:Invent:
- Cost control in 2018 will be about aggregating metrics and taking automated actions based on Machine Learning
- AWS talks a lot about advanced cloud services and PaaS, but a majority of the customers we talk to still use and spend most of their dollars on EC2, RDS and S3
- DevOps / CloudOps folks are in charge of implementing cost control actions and pick the tools they want to use to optimize cloud spend
See you next year – pre-book your Uber/Lyft or bring a scooter!
For the second part of our cloud service provider comparison, we’ll continue our discussion of “secondary” cloud providers with two longtime tech industry giants: IBM vs Oracle.
We always talk about the “big three” cloud providers: Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP). We’ve covered Azure vs AWS, Google vs AWS, and most recently, the rise of Alibaba as the next biggest cloud provider. But what about the rest? IBM and Oracle have solidified themselves in the technology world, but will their offerings bring them success in the public cloud? And if so, does one of them have a better chance?
- At the end of June 2017, IBM made waves when it outperformed Amazon in total cloud computing revenue at $15.1 billion to $14.5 billion over a year-long period
- However, Amazon is still way ahead when it comes to the IaaS market
- For 2016, Amazon had the highest IaaS revenue, followed by Microsoft, Alibaba, and Google, respectively. IBM did not make the top 5.
- Alibaba had the highest IaaS growth rate, followed by Google, Microsoft, and Amazon, respectively.
- IBM was the fourth biggest cloud provider – before Alibaba took over
- In Q1 of 2017, Synergy rankings showed that IBM has 4 percent of the public cloud market share, just behind Alibaba’s 5 percent
- AWS had 44 percent, Azure – 11 percent, and Google Cloud – 6 percent
The reality that Alibaba knocked IBM out of fourth place in the ongoing saga of the cloud wars is a bit unsettling, but remember that the enterprise cloud is still just beginning. After all, the term “cloud computing” was only coined just a few years ago, in 2006. As we look forward, IBM and Amazon just released their own television ad campaigns, and the differences in their messaging are an indication of how each provider plans to move forward.
As enterprises continue their shift to the cloud, TV ads tell us a lot about a provider’s purpose, overall message, and target audience. In the IBM ad, “The Cloud for Enterprise, Yours,” the cloud is presented not as a cloud at all, but as an entity “built for your business, designed for your data, and secure to the core.” This messaging opens an otherwise confusing, sometimes difficult to understand service for business leaders, to something tangible, something that makes sense, something that was built for their enterprise. That type of message goes a long way with people who don’t know the first thing about cloud computing.
On the other hand, Amazon’s ad targets a different audience entirely: “the builders” – developers, programmers, and architects who already have a full understanding and reliance on AWS for their building needs. In contrast to IBM, whose ad is all about how their cloud is helping businesses through the power of data and innovation, blockchain, and more, Amazon went straight for the technical experts who know exactly what they’re doing, no explanation necessary. The ad was also perfectly timed for the arrival of AWS re:Invent in Las Vegas this past week (ParkMyCloud was there as a sponsor!), gearing up their technical followers for the big event.
IBM positioned itself as a cloud provider for business leaders as the shift to the cloud only gets bigger. Amazon positioned itself as a haven for technical experts, the people writing code and continuously managing applications and other processes. It will take some time before we see the results of how this messaging plays out, but it certainly says something about who each provider wants to impress. And while pretty much everyone agrees that Amazon is currently leading the cloud, the numbers don’t lie – let’s not forget that IBM outperformed them in overall cloud revenue.
- Oracle’s cloud business is still ramping up, particularly in terms of IaaS
- In fiscal Q1 of 2018, growth was at 51 percent, down from a 60 percent average in the last four quarters
- Q4 for fiscal 2017 was at 58 percent
- Since last quarter, shares have gone down by 10 percent
If things weren’t looking good for Oracle before, they may have just taken a turn for the worst. This past week AWS re:Invent, we witnessed CEO Andy Jassy make quite a dig at Oracle during his keynote speech. There was a cartoon involved, featuring Oracle founder Larry Ellison, and the message was clear: AWS is taking business away from Oracle.
Oracle’s success largely comes from its database business, which is still their biggest revenue producer as many companies use their databases to run critical parts of their operations. AWS decided to take them head on with a database on their own, directly targeting their enterprise customers. After AWS launched Aurora, in competition with Oracle’s SQL database, they efficiently started peeling away longtime Oracle customers. Oracle’s response? Build their own cloud, competing directly with the biggest and most successful cloud provider thus far, AWS.
But in spite of their current position, we can’t rule out Oracle just yet. For customers who still rely on Oracle’s database or other software, the cloud is a welcome offering and probably an easier option. And in an attempt to make things harder for AWS, Oracle made some changes to its licensing, and doubled the cost of using its database on AWS in hopes that customers who already use Oracle’s database will find their cloud a cheaper, more appealing option. However, this also backfired to some degree as customers using AWS cloud in conjunction with Oracle’s database did not appreciate the spike in price. Ultimately, the decision could prove itself to be more beneficial to AWS customers, prompting them to switch their database instead of their cloud provider.
And this brings us back to re:Invent, where Andy Jassy announced a new, serverless database service – Aurora Serverless. Again, this new offering is in direct competition with Oracle’s database, and once it goes live, only time will tell if Oracle can take the heat.
IBM vs Oracle: The Takeaway
IBM vs Oracle – does either of them stand a chance against the bigger, more well known cloud providers? So far, it’s looking pretty good for IBM. They have their sights set on huge success with the introduction of Watson, the AI supercomputer that generated a lot of buzz when it won Jeopardy. They’ve also taken a new approach with their TV ad campaign, setting themselves apart from Amazon with an entirely different audience, wooing business leaders as the best choice in terms of business and innovation strategy. And of course, they’ve taken the lead in cloud computing revenue, which is nothing to scoff at.
On the other hand, Oracle is struggling to find its place, and Amazon is calling them out. With the announcement of Aurora Serverless, we’ll be looking to see how this new offering impacts Oracle as it takes a direct hit to it’s flagship product – their database business. If Oracle wants to keep up and hold it’s own against other cloud providers, they might be wise to take a note from IBM and innovate with a new approach entirely.
In the ongoing battle for the ultimate cloud provider, Amazon’s lead is certainly not a guarantee. Not only are Google and Azure coming in strong, but Alibaba is well on its way, and other secondary providers like IBM and Oracle are working on innovations and improvements to secure their place in the ranks.
In the end, we always find it helpful to come back to one of our favorite Andy Jassy quotes regarding the cloud battle:
“There won’t be just one successful player. There won’t be 30 because scale really matters here in regards to cost structure, as well as the breadth of services, but there are going to be multiple successful players, and who those are I think is still to be written.”
As we continue making comparisons between cloud providers, keeping up to date with ongoing advancements and innovations behind their offerings, we welcome you to participate! Please share any thoughts or feedback in the comment section, we’d love to hear your take!