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Hot Air in the Clouds, July 12th 2013

AWS Price Cuts – Signal Softlayer & IBM as Threat?

Amazon has cut prices again, specifically on dedicated EC2 instances from 37% to upwards of 80%. The cuts would appear to be a strategic move in order to better defend itself. It could be said that the recent IBM acquisition of Softlayer has put them on a path of encroaching growth, especially for enterprise cloud market share with IBM’s strong history and a newly acquire, but well liked line of bare metal cloud from Softlayer.

Rackspace stock took an 8% hit when the news was announced amid investor worries that the firm may concede market share to Amazon.

eNovance Expanding in North America

French firm eNovance has raised another 7 million in funding to help expansion North America. Currently, the managed cloud hosting firm offers both public cloud and managed services. Their public cloud in Canada, from eNocloud has resources currently available on our marketplace and is based on OpenStack. eNocloud was built to offer their managed service customers an option outside of AWS for users who need Canadian cloud IaaS in a highly available setting. Their cloud services portfolio is strengthened by their track record of contributions to the OpenStack initiative. So far, the firm has about twenty employees in Montreal, with plans to target new initiatives towards Silicon Valley and the U.S. market.

IBM to Offer a Drag’n’Drop Cloud?

A month after their announced acquisition of Softlayer, IBM has announced a deal earlier this week to acquire Israeli firm CSL International. The acquisition of CSL and CSL-wave management seeks to improve IBM’s cloud capabilities and make management easy to use with intuitive software including drag and drop usability (see below) to help customers “create, discover, visualize, and connect” VMs and resources.

Red Hat Releases Grizzly RHEL for Openstack

There’s big news for Red Hat this week with the release of OpenShift version 1.2 and the announcement of pricing for the new Grizzly based Openstack Red Hat Enterprise Linux platforms (RHEL). The pricing for RHEL is very aggressively priced compared to private cloud vendor and Red Hat competitor VMWare, with costs as low as a third of what VMware currently offers.

Cloud Stock Market Update

The best and worst performing stocks for the first half of 2013 for firms in the cloud computing industry has been released with NetSuite leading the pack with a 37% YTD gain. On average, the 20 firms that make up the Cloud Computing Stock Index attained 29.6% return over the past year, showing the overall growth of the industry. Surprising poor performance from Rackspace Hosting and VMware.

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