Quest buys Surgient
In another sign that private cloud computing is emerging as a profitable and more commonly-used technology, Texas-based virtualization management vendor Quest Software has purchased Surgient, Inc., a provider of private cloud automation software. The deal is expected to close in the third quarter, giving Quest a fresh portfolio of tools for managing secure cloud infrastructures.
The announcement was paired with IDC research that shows how Quest, already serving 20,000 virtualization customers, could benefit from branching more into internal clouds. Demand for server automation tools will likely top $1 billion by 2014, according to IDC research. An IDC survey also shows that 73 percent of all businesses are evaluating, planning or have already implemented private cloud strategies.
Royal Mail to outsource to the cloud with Capgemini
On a six-year meta cloud deal, UK postal service the Royal Mail Group (RMG) will use IT services giant Capgemini to replace customer-facing Web services and many internal IT services with cloud providers like Google and Salesforce.com. Capgemini has bundled 18 different cloud computing, Software as a Service (SaaS) vendors and technology suppliers under one umbrella that it calls "Capgemini Immediate," which delivers the normally self-service SaaS apps through Capgemini's portal technology.
The company will also perform the migration and integration services to get the RMG turned around and ensconced in the cloud. While the end result looks a lot like traditional outsourcing deals, Capgemini said it will charge on a pay-as-you-go basis and promises easy scalability and flexibility. RMG cited costs, flexibility and modernization as primary drivers in a promotional video at Capgemini's website.
Analysts say that it's an example of where outsourcing is moving, and while the deal isn't amazing, the use of cloud services and next-gen technologies like Drupal mark it as interesting. The danger is always the same in big outsourcing deals, said Forrester's James Staten: that a company will expect flexibility and lower costs and instead end up with an enterprise-scale boondoggle.
"They don't want to end up like GM, which outsourced everything it had to EDS and, seven years later, looked around and said 'Wow, that wasn't such a great idea,'" he said.