UPDATED 08:17 EDT / OCTOBER 12 2011

IBM Puts Amazon, Google On Notice with Nirvanix OEM Partnership – Cloud Leadership Is About Scale Advantage

Here we have two services companies coming together—IBM Global Services and Nirvanix—to deliver combined cloud compute and cloud storage services to customers worldwide. They both understand the managed service model, the MRR model or as I say “Everything as a Service”. In this approach the SLAs need to be defined and delivered specifically SLAs that customers expect. IBM is basically competing as a cloud service provider in the enterprise at scale from day one.

This is even more evidence that HP needs to seriously get its cloud storage act together. As we’ve pointed out before, while HP is putting together their cloud play with moves around with OpenStack concepts that aren’t ready for prime time, IBM is taking Nirvanix cloud storage technology that’s already deployed in hundreds of enterprise customer sites—with Petabytes of capacity under management—and bringing it straight to its customer base.

As I pointed out yesterday on my personal blog (link here), HP needs a serious answer for cloud and it needs it now. Keep the PC division and reposition the OpenStack storage framework. Openstack is a fine marketing play but it is not even deployed by any service provider in production mode. OpenStack is a moving train and even its creator, Rackspace, has it available in “alpha” mode—so this clearly is not the approach that a company whose cloud strategy is in total shambles should be taking. Read my Letter to Meg for more on what HP needs to do to get its act together. – my letter to Meg Whitman – link

And don’t get me started on Oracle, who tried to make noise with a “public cloud service” last week, but failed to point out that they are missing core cloud storage and cloud compute functionality. Uncle Larry claims he can compete with Amazon now, yet he’s missing the two key guns in his arsenal to try and make a dent.

The enterprise space is smoking hot and IBM just made the cloud services business more interesting. Nirvanix now becomes the hottest startup in the sector and if they continue to win big enterprise customers then Box and others won’t have a chance in the enterprise. The scoreboard for all companies is customer traction and revenue. Lets see who brings that to the table.

Watch this space. It’s about to get a whole lot hotter in here.


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