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Rabu, 30 April 2014

Electric Cloud Closes $12M Series E Round For Its Continuous Delivery Service

Electric Cloud, a company that offers continuous delivery products, services and support to businesses that want to adapt this software design practice, today announced that it has closed a $12 million Series E round with participation from Siemens’ Venture Capital, US Venture Partners, Mayfield Fund, RRE Ventures and Rembrandt Venture Partners. The company previously disclosed this as an $8 million round in September 2013, but today announced that it has added an additional $4 million to this over-subscribed round.

Steve Brodie, Electric Cloud’s CEO, said in a statement announcing the funding that closing the over-subscribed Series E round will help to accelerate company growth and create new ways to help customers deliver better software more efficiently.

The company says the additional funding reflects its “continued growth and market leadership.” Electric Cloud’s services are currently in use by a wide variety of businesses, ranging from Shell Oil to Epic Games, Panasonic Automotive Services, Splunk and SpaceX. Its staff has now grown to 120 employees, and its products include services for agile software development, Android life-cycle management and automotive software.

Continuous integration (that is, ensuring that all developers are synced up by checking on their code regularly) has been commonplace since the 90s. Continuous delivery, however, which goes beyond integration and focuses on the deployment pipeline, is only now really catching on in the enterprise. Already, though, it is a surprisingly competitive field; incumbents like HP to ThoughtWorks and startups like CloudBees’ Jenkins and the increasingly popular Chef are vying for users.

Cloud Sound Platform Audiboo Preps London AIM Float To Raise £4M

Audiboo, the British cloud audio platform which once competed with Soundcloud but has found a niche working with media companies, has confirmed its plans for a small public listing on the London Stock Exchange’s Aim market.

It’s achieving this via a reverse takeover of the cash shell company One Delta (which has lain dormant for some time).

The news comes after floated media company UBC and Slovar Ltd – who together hold 78.86% of the issued share capital of Audioboo – agreed to swap their investment in AudioBoo for shares in One Delta. UBC will hold about 20% of Audioboo following the deal.

The floatation will be accompanied by a £4m fundraising from Audioboo to boost its business facilitating podcasts and recordings for partners including the BBC, the Premier League and the National Trust wildlife charity.

It’s all a far cry from when AudioBoo and Soundcloud where uttered in the same breath.

This January Soundcloud raised $60m at a $700m valuation.

Senin, 28 April 2014

The Dawn Of Cloud 2.0 And Why Google Started A Price War

Editor’s note: Peter Relan is serial entrepreneur-turned-founder of two incubators: YouWeb (focused on gaming), and Studio 9+ (focused on big data, IoT, wearables, and P2P marketplaces). His incubations include OpenFeint, Crowdstar, Hammer and Chisel, Spaceport, and Agawi. Prior to founding his incubators, Peter held founding roles at Webvan and Business Signatures, as well as executive roles at Oracle and HP.

Google recently announced up to 85 percent reduction in pricing for its PaaS and BigQuery services. Soon after, AWS and Microsoft followed suit. Welcome to Cloud 2.0.

Google did this because it could

Google’s core cash engine is its paid web search/advertising business, which generates almost $4 billion a quarter from 29 percent net profit margin. Amazon’s core business, on the other hand, is retail e-commerce, which generates almost no profit.

So Google can muscle its way into the cloud IaaS and PaaS space even though Amazon was the pioneer with AWS. Microsoft can, too, with its huge Office and Windows profit engines. AWS may well be the pioneer of Cloud 1.0, but it’s not clear whether it can play a full-on price war with Google and Microsoft — and others waiting in the wings to pounce on new opportunities.

Even though Jeff Bezos has always convinced the street that he can pull a rabbit out of a hat, this one is going to be a tougher sell. But don’t bet against him yet. There is still Cloud 2.0 and he can acquire things in that space. But back to Google for now.

Google did this because it had to

Even if Google could do it, why did it have to? As mobile takes off, Google’s growth on the web is slowing, and it has new challengers, including Facebook, which is killing it in mobile. Mobile usage continues to eat away into desktop usage, browser usage on mobile versus app usage continues to decline, and mobile clicks generate less money than desktop clicks.

YouTube is certainly now generating revenues, and Google Docs is certainly taking some share away from Microsoft Office, especially in the SMB market. But guess what? They are basically both cloud plays.

So the next growth engine in five years is self-driving cars, drones or Google Glass? Unlikely. The ATAP (Advanced Technologies and Projects) groups are exciting but not huge growth businesses yet. Cloud services and apps, however, are expected to grow dramatically to over $100 billion of the $1 trillion of spend on software.

So Google needs to aggressively gain share in the cloud market. It needs to double down on the cloud plays that are working and offer even more in the cloud to capture growth in markets other than web advertising where its growth is slowing.

What does this mean for innovation?

Price wars don’t usually bode well for innovation. It’s often a signal that the offering has become a commodity. But what it really means is that, while Cloud 1.0 is moving toward commodity, Cloud 2.0 is already gearing up — and it will be disruptive again.

So what can we expect from the gorillas and the next Cloud startups? They’re muscling for market share with Cloud 1.0. Surely there will be some innovation like Google BigQuery, which came out only last year and is based on Dremel, Google’s internal big-data engine. But the disruptive innovation will come from startups. Surprised?

What will Cloud 2.0 innovation look like?

There will be two types of startups in the next generation of cloud computing.  One will be startups that leverage the incredible cost structure Cloud 1.0 just achieved for them to build cloud apps. Of the $100 billion cloud market, this is the largest category — possibly half of it, according to research analysts. Google is already in there with its own cloud apps like Google Docs. Both enterprise and consumer apps will combine with mobile in new and interesting ways to create huge new companies.

The second type of innovation will be from startups that invent new Cloud 2.0 services, while the gorillas focus on the market-share war of Cloud 1.0 services in IaaS, PaaS and now BaaS.

IaaS innovations will include software-defined networking, virtualization, edge computing, storage and security advances. At the end of the day mobile apps with cloud-based backends are a new architecture. How will virtualization, networking, security, storage tech adapt to the mobile era? Look at Fastly, a new August Capital-backed Edge Computing CDN built just for Mobile architectures. A new CDN? Not something we look to AWS and Google for. Yet. 

PaaS innovations will include new programming environments and web services like Pantheon that make it easier and faster to build breakthrough content and app experiences. And BaaS innovations will include new cloud based back-ends like Kinvey, along with data-mining and analytic services in the cloud.

Cloud 2.0 will be heralded by a bevy of startups already innovating for the next wave while the gorillas who can and have to fight for Cloud 1.0 market share divvy up the market. Then there will be a wave of acquisitions as Cloud 2.0 companies gain scale, and Cloud 1.0 gorillas have to differentiate. What do you think? Please comment and let me know.

Image by Flickr user Daniel X. O’Neil under a CC BY 2.0 license

Minggu, 27 April 2014

Scanbot Scans and Uploads Multipage PDFs Directly to the Cloud

Android: In the future, paper (much like running) will only exist for recreation, for fun. In the meantime, we still have to deal with annoying contracts, memos, and receipts. All of which can be scanned instantly and uploaded directly to Dropbox, Evernote, and more with Scanbot, previously available for iOS.

This app isn't the first of its kind, but its one of the simplest. Simply point your camera at a document and it will scan it, and do some automatic perspective correction. From there you can upload it to a number of cloud services, including Dropbox, Evernote, Box, Google Drive, and OneDrive.

Scanbot | Google Play Store via Beautiful Pixels



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Jumat, 18 April 2014

Microsoft’s Enterprise Cloud Services Get A Privacy Thumbs Up From Europe’s Data Protection Authorities

Microsoft is no stranger to the chilling effects of European regulation, facing fines for some of its own practices and seeing rivals like Google get off the hook more lightly. But today comes a piece of good news for Redmond: the data protection authorities (DPAs) of all 28 European member states have decided that Microsoft’s enterprise cloud services meet its standards for privacy. This makes Microsoft Azure, Office 365, Microsoft Dynamics CRM and Windows Intune the first services to get such approval.

The privacy decision was made by the “Article 29 Data Protection Working Party,” which notes that this will mean that Microsoft will not have to seek approval of individual DPAs on enterprise cloud contracts.

In its letter to Microsoft (embedded below), chair Isabelle Falque-Pierrotin writes, “The MS Agreement, as it will be modified by Microsoft, will be in line with Standard Contractual Clause 2010/87/EU… In practice, this will reduce the number of national authorizations required to allow the international transfer of data (depending on the national legislation).”

Data privacy has been a long-standing issue in Europe, with the model clauses for best practice very much predating the Age of Snowden. But more recent events have certainly heightened awareness among consumers, businesses and governments of how data is used (and abused). That in turn has led to a number of proposals about how to handle it in the future.

The flip side, however, has been a potential minefield for the world of tech: so many networked services and data sit on the same cloud infrastructure that is now under more intense scrutiny for data protection and privacy violations than ever before. The trick for companies like Microsoft is to meet standards set by regulators (and their own customers, and their own code of ethics, if we’re honest) while continuing to provide a smooth service without lots of hiccups. This is as much a business imperative as anything else. “Ultimately, customers will entrust their information to the cloud only if they have confidence that it will remain secure there,” writes Brad Smith, Microsoft general counsel and EVP for legal and corporate affairs, in a blog post announcing the news.

As a result of the recent decision, Microsoft says it will send out notices, starting July 1, to current customers with addendums to their existing agreements, for them to become party to the new recognition.

“The EU approval requires that customers execute a short, standardized addendum to their current agreements in order to take advantage of this new recognition, and we will create a very simple process to facilitate this,” writes Smith.

Smith notes that this will effectively mean that customers of Microsoft’s enterprise cloud services can use those services “to move data freely through our cloud from Europe to the rest of the world.”

“By acknowledging that Microsoft’s contractual commitments meet the requirements of the EU’s ‘model clauses,’ Europe’s privacy regulators have said, in effect, that personal data stored in Microsoft’s enterprise cloud is subject to Europe’s rigorous privacy standards no matter where that data is located.  This is especially significant given that Europe’s Data Protection Directive sets such a high bar for privacy protection.”

Among proposals in the works that Microsoft is hoping to address with this latest development is a Safe Harbor Agreement covering data transferred from Europe to the U.S., and then processed by U.S. organizations. The European Parliament has voted to suspend that Safe Harbor Agreement, although that has yet to be implemented.

Smith notes in his post that one of the effects of this recent privacy approval will be that, regardless of whether it does, its customers’ use of Microsoft’s cloud services will not be curtailed. That’s not to say that Microsoft has gotten approval to process the data, but that it has proven to the authorities that it would not.

Smith notes also that Microsoft’s agreements go one step further now. “Even if the Safe Harbor Agreement remains in place, it covers only transfers from Europe to the U.S.  Our approved contractual commitments, by contrast, enable transfers globally,” he notes.

He says that this is just the beginning of what Microsoft is putting in place. “We have had and will continue to do the hard work to ensure that we can comply both technically and operationally with the stringent obligations imposed by these contractual commitments,” Smith writes. “All of our customers, whether they have operations in Europe or elsewhere, benefit from the strong engineering protections we have put in place as a result.”

The developments today come in the wake of Microsoft making other efforts to demonstrate that it’s making an effort to protect customer data. Other initiatives include the group that also includes Aol, Apple, Dropbox, Facebook, Google, LinkedIn, Twitter and Yahoo called Reform Government Surveillance. And it has also, like others, implemented encryption capabilities for enterprise users.

AppDirect Raises $35 Million From Mithril To Grow Its Enterprise Cloud Marketplace

AppDirect raised $35 million in a fresh round of financing for its service selling a white-label marketplace for business applications in the cloud.

Led by Peter Thiel’s Mithril Capital, the new financing will be used to expand the company’s international presence and continue its product development. Existing investors, including iNovia Capital and Foundry Group, also participated.

Founded in 2009, the company sells its online services marketplace as an unbranded platform to companies like Staples, Comcast, and AT&T, enabling them to then sell software as a service applications through to small and medium-sized businesses.

“For the developer, it’s easy to integrate into one standard platform and distribute across the board [and] businesses see value in centralizing around a single platform,” said AppDirect’s chief executive Daniel Saks. “We sit at the intersection of the developers and the businesses by enabling distribution.”

The San Francisco-based company generates revenue from a monthly subscription service that customers like AT&T and Comcast pay for its application platform and through a revenue share with applications that are accessed through its white-label service, according to Saks.

Given the growth of companies selling software as a service, AppDirect saw significant demand from investors for its latest fundraising. The company closed its latest Series C round within six weeks of launching its fundraising efforts, Saks said.

Part of the demand was based on the company’s growth, which has led to revenues of $9 million in 2013, according to Saks.

Now that the company’s round has closed, AppDirect is focused on growth in Europe and Latin America. The company is in the process of establishing an office in Munich, in addition to locations in Montreal, San Francisco, Boulder, Colo., Ottawa, and London.

The company is also on the hunt for new acquisitions, building off of its last two purchases. In 2012 it bought jBilling, a billing service for cloud applications. And last year it acquired StandingCloud, which sells a service packaging applications for cloud services, in a September 2013 acquisition.

Both acquisitions continue to operate as independent brands, while AppDirect has folded their technologies into its own suite of services, Saks said.

Given the company’s new cash position, additional acquisitions may also be in the cards. “The categories that we always look at are billing, identity management and security, and finally data management,” said Saks.

Photo via Flickr user Megan McCormick

Selasa, 25 Maret 2014

Enter The Blockchain: How Bitcoin Can Turn The Cloud Inside Out

Drop whatever you’re doing and go read Maciej CegÅ‚owski’s absolutely magnificent essay Our Comrade The Electron, an astonishing history of the amazing Russian engineer Lev Sergeyevich Termen. Make sure you read right down to its punchline, “the most badass answer imaginable.” But if time is short, or you struggle to read English, please at least read its angry rant, from which I quote:

Technology concentrates power.

In the 90′s, it looked like the Internet might be an exception, that it could be a decentralizing, democratizing force … but those days are gone … What upsets me, what really gets my goat, is that we did it because it was the easiest thing to do … Making things ephemeral is hard. Making things distributed is hard. Making things anonymous is hard. Coming up with a sane business model is really hard—I get tired just thinking about it.

We put so much care into making the Internet resilient from technical failures, but make no effort to make it resilient to political failure. We treat freedom and the rule of law like inexhaustible natural resources, rather than the fragile and precious treasures that they are. And now, of course, it’s time to make the Internet of Things, where we will connect everything to everything else, and build cool apps on top, and nothing can possibly go wrong.

He’s right. And so the Internet has, for most intents and purposes, evolved into a landscape dominated by centralized systems, epitomized by what Bruce Sterling calls the Stacks — Amazon, Apple, Facebook, Google, Microsoft. To quote, er, myself:

They don’t want much, those Stacks. Just your identity, your allegiance, and all of your data. Just to be your sole provider of messaging, media, merchandise, and metadata. Just to take part in as much of your online existence as they possibly can, and maybe to one day mediate your every interaction with the world around you, online or off.

The Stacks exist in part because less centralized systems are extremely difficult to build. Consider, for instance, Google+ architect Yonatan Zunger’s explanation of “distributed consensus,” i.e. the means by which data can be safely preserved in distributed systems with multiple editors. It’s absolutely brilliant — but none of its 8,000 words are wasted. The gold-standard “Paxos” algorithm is sufficiently complex that a pair of Stanford engineers recently published a paper entitled “In Search Of An Understandable Consensus Algorithm” (PDF) — the title of which sums up the state of the art nicely — in which they present a new alternative, “Raft.”

Distributed algorithms, distributed data, distributed systems, distributed security: messy, tricky, complicated, a maze of vibrating tightropes stretched across an N-dimensional pit full of hungry failure modes with sharp teeth. Hard stuff.

But not impossible.

Just ask Satoshi Nakamoto.

Beyond the hype and the greed, Bitcoin is powered by a genuine technical breakthrough(1), to a degree I did not properly appreciate when I first started writing about it. The “blockchain” — the engine on which Bitcoin is built — is a new kind of distributed consensus system that allows transactions, or other data, to be securely stored and verified without any centralized authority at all, because (to grossly oversimplify) they are validated by the entire network. Those transactions don’t have to be financial; that data doesn’t have to be money. The engine that powers Bitcoin can be used for a whole array of other applications…

…with one huge caveat. As Michael Nielsen puts it, in his excellent, detailed explanation of how Bitcoin actually works:

For [the blockchain] to have any chance of succeeding, network users need an incentive to help validate transactions. Without such an incentive, they have no reason to expend valuable computational power, merely to help validate other people’s transactions. And if network users are not willing to expend that power, then the whole system won’t work. The solution to this problem is to reward people who help validate transactions.

Satoshi Nakamoto’s genius was twofold; technically, he built the world’s first(1) blockchain; socially, he lured people into powering it, using good old filthy lucre as an incentive. Which was very effective, but is now also a little awkward, as Bitcoin-as-a-currency has attracted a large number of … er … let’s diplomatically call them “colorful personalities,” and also, money-as-a-store-of-value is one field where in fact you probably do want some centralized authority, or at least insurance. I agree with the mordant observations on Twitter that it’s highly amusing watching the extremist fringes of the Bitcoin community slowly rediscover from first principles exactly why financial regulation exists in the first place.

Meanwhile, though, the noise and smoke of the ongoing endless (and endlessly entertaining) Bitcoin sturm und drang has — ironically — obscured its real breakthrough; the blockchain.

You see, it’s not that hard to imagine other blockchain-based systems which aren’t currencies and don’t attract as many “colorful personalities.” Suppose you replaced the Internet’s centralized Domain Name System with a blockchain for Internet names (like Namecoin) such that every DNS request included some proof-of-work effort. Or you used any blockchain (including Bitcoin’s) as a notary service. Or you built a new blockchain for crowdfunding. Or you replaced a centralized system which absolutely does need to be scrapped — that horrific barrel of worms known as TLS/SSL Certificate Authorities — with a blockchain-based solution powered at the browser level.

Or you built a new distributed email service, with a blockchain for email addresses, and every time you checked your email you contributed to the network. Or a new distributed social network, with a blockchain verifying identities, powered by code that ran every time its users launched its app or visited its web page.

(Technical note: this would obviously be a far more diffuse and granular system than Bitcoin’s, which runs on machines generally devoted 24/7 to mining. I don’t think that would require substantive changes to the algorithm, but while I’m a pretty good engineer I’m not an expert. That said, there’s no reason why a large number of relatively ephemeral clients would be fundamentally incompatible with a Hashcash-esque proof-of-work system, though I guess you might need a smaller subnet of persistent “supernodes” to maintain the blockchain.)

To be clear, I’m not suggesting that some smart startup might turn around tomorrow and replace Gmail or Facebook with a blockchain-powered solution. But I am saying that some indeterminate number of years hence, as bandwidth improves, and processors grow ever more powerful, and storage gets ever cheaper, it’s not inconceivable that those massive server farms could be replaced, not with a “personal cloud” — a bad idea for many reasons — but by massive distributed peer-to-peer networks: open-source, encrypted end-to-end, and orchestrated in part by blockchains. I’m saying that I can at least envision, albeit vaguely, the decline of the Stacks. Which if you look at the Internet today seems like a pretty striking and revolutionary thing to say.

For what it’s worth, I’m by no means alone in left field shouting that the blockchain is a big deal; heck, just look at Andreessen Horowitz over the last few months. And it seems likely that the blockchain, and Raft, and Spanner, and that great granddaddy of distributed peer-to-peer data called BitTorrent, are only the beginning; I expect more and more distributed-computing breakthroughs of comparable magnitude over the next decade, as the world’s searchlight minds turn to the forthcoming Internet Of Things.

Last year I argued that “The Internet: we’re doing it wrong.” Now, though, only six months later, I see traces and hints that we’re finally making the first faltering motions towards doing it right. BitTorrent is thirteen years old, but it has only just now been done right (at least for pirates) in the form of Popcorn Time. Raft might be, in a sense, Paxos done right. Threadable looks like group communications done right (and, again, distributed, at least to the extent that email is distributed.) Keybase.io seems like a step towards PGP done right. TextSecure is cross-platform end-to-end-encrypted messaging done right.

Maybe, just maybe, our online future is actually bright, and peer-to-peer, and encrypted end-to-end, and maybe even open-source and far less overtly commercial than today — and built, in part, on blockchains.


(1)You can argue that it’s more a synthesis of previous theoretical breakthroughs than a completely new invention; whatever, I don’t care.