Rackspace and Datapipe Take Leadership Positions In Gartner Magic Quadrant For Cloud-Enabled Managed Hosting, North America

Datapipe and Rackspace take the two leadership positions in the Gartner Magic Quadrant for Cloud-Enabled Managed Hosting, North America as illustrated below. Datapipe offers fully managed hosting solutions on Amazon Web Services in addition to private cloud and hybrid cloud solutions. Rackspace, meanwhile, recently introduced a managed cloud service that builds upon its branding for “fanatical support” by delivering managed infrastructure and managed operations solutions. CenturyLink was also positioned strongly as a visionary with a strong ability to execute. Managed hosting solutions are likely to play a critical role in the next phase of the evolution of IaaS adoption as organizations increasingly strive to simplify and streamline IaaS adoption by transferring responsibility for provisioning, managing and troubleshooting IaaS environments to vendors who specialize in managed cloud solution delivery.

Source: http://go.datapipe.com/gartner_cloud_enabled_magic_quadrant_2014

Disclaimer: This graphic was published by Gartner, Inc. as part of a larger research document and should be evaluated in the context of the entire document. The Gartner document is available upon request from Datapipe here or Rackspace here. Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

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Oracle Acquires RightNow Technologies for $1.43 Billion

Less than a week after its $1.1 billion acquisition of Big Data player Endeca, Oracle announced plans to acquire RightNow Technologies for $1.43 billion. RightNow Technologies delivers a cloud based technology platform that enables enterprises to deliver enhanced customer experiences with a product via the web, social media and call centers. The RightNow Technologies “Contact Center” platform empowers service representatives with data and solution options for customers calling with questions or complaints. Similarly, the RightNow Technologies web solution empowers companies to optimize the web experience of their customers to optimize conversions and obtain optimal web support. The Boston based company’s Social Experience offering enables enterprises to monitor and refine their branding on Facebook and other social media sites.

The deal represents Oracle’s largest acquisition since Sun Microsystems in 2010 for $7.4 billion. Oracle’s acquisition of RightNow Technologies consolidates its emerging public cloud offering and positions it to compete squarely against Salesforce.com, the market leader in sales management technology that leverages cloud based solutions. In September, Gartner positioned RightNow Technologies within the leader quadrant of its Magic Quadrant for CRM Web Customer Service.

Amazon Web Services and the Large Scale Enterprise Space

In a December 2010 article titled “Magic Quadrant for Cloud Infrastructure as a Service and Web Hosting”, Gartner positioned Amazon Web Services (AWS) as a visionary within its Magic Quadrant in the Cloud Computing Space. Within the “Visionary” category, Amazon was joined by GoGrid, CSC, Joyent and IBM whereas the “Leaders” box was occupied by Savvis, AT&T, Rackspace, Verizon Business and Terremark Worldwide. Gartner’s designation of AWS as a visionary was widely controversial given its first mover advantage in the cloud computing space, its dominance of cloud computing market share and the unparalleled depth of its features and functionality. In its critique of AWS, Gartner noted that Amazon lacked managed services that catered to the needs of customers who required customized management of data and applications that have been transferred to the cloud. Moreover, Gartner claimed that Amazon lacked colocation and dedicated non-virtualized servers, charged separately for items that are often bundled for free in the offerings of its competitors, and was fundamentally developer-centric, rather than enterprise oriented.

This article claims that Gartner’s criticisms about Amazon’s “lack of managed services” are misguided and reveal a fundamental misunderstanding of its business model and strategic objectives. On one hand, Gartner is right to claim that Amazon’s EC2 cloud computing service lacks managed services that provide enterprise customers with the personalized attention to which they have been accustomed when purchasing IT services from vendors such as IBM, SAP or Siemens Soarian. That having been said, Amazon’s cloud computing business model is designed to eschew the personalized attention specific to the procurement process and subsequent customized management of its cloud computing services. Amazon’s EC2 platform provides the most flexible, easily configurable, streamlined process for deploying software applications in the cloud computing space, today. In exchange for Amazon’s low pricing and array of applications for provisioning servers and associated applications with a few clicks of the mouse, enterprise customers will need to abandon the expectation that they will receive customized attention from their cloud computing vendor. Just as Wal-Mart bifurcated the department store experience into those stores that compete in price and those that offer customers personalized attention during the shopping process, Amazon intends the same in the cloud computing market: take advantage of its low pricing and bevy of applications for streamlining the deployment experience such as Hadoop, Elastic Beanstalk and CloudFormation, or go elsewhere. Gartner is right to claim that Amazon is fundamentally developer-centric, but it misses the reality that Amazon’s business model conflates developer-centric with enterprise oriented by providing large scale enterprises with unparalleled ease of deployment and application management experience. To repeat: for Amazon Web Services, developer-centric is enterprise oriented, but in a way that departs from the traditional model by which large-scale enterprises have been used to procuring IT services by receiving customized pricing, product demonstrations and walk-throughs for C-level stakeholders, negotiation about customized features and functionality, and customized management of services, post-signing. Instead, Amazon CEO Jeff Bezos, its CTO Werner Vogels and the rest of AWS’s executive team have thrown the ball into the court of C-level executives at the enterprise level and its development managers, daring them to take or leave the flexibility of its deployment platform and attractive pricing.

Our next postings will elaborate more on precisely how Amazon’s product functionalities and 2011 product roadmap simplifies and streamlines the development experience for large scale enterprises. We will examine Elastic Beanstalk, CloudFormation, its VMWare Plug-in, integration of Zeus Load Balancer and its premium support services in more detail.