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Google reportedly cancelled a cloud project meant for countries including China

After reportedly spending a year and a half working on a cloud service meant for China and other countries, Google cancelled the project, called “Isolated Region,” in May due partly to geopolitical and pandemic-related concerns. Bloomberg reports that Isolated Region, shut down in May, would have enabled it to offer cloud services in countries that want to keep and control data within their borders.

According to two Google employees who spoke to Bloomberg, the project was part of a larger initiative called “Sharded Google” to create data and processing infrastructure that is completely separate from the rest of the company’s network. Isolated Region began in early 2018 in response to Chinese regulations that mean foreign tech companies that want to enter the country need to form a joint venture with a local company that would hold control over user data. Isolated Region was meant to help meet requirements like this in China and other countries, while also addressing U.S. national security concerns.

Bloomberg’s sources said the project was paused in China in January 2019, and focus was redirected to Europe, the Middle East and Africa instead, before Isolated Region was ultimately cancelled in May, though Google has since considered offering a smaller version of Google Cloud Platform in China.

After the story was first published, a Google representative told Bloomberg that Isolated Region wasn’t shut down because of geopolitical issues or the pandemic, and that the company “does not offer and has not offered cloud platform services inside China.”

Instead, she said Isolated Region was cancelled because “other approaches we were actively pursuing offered better outcomes. We have a comprehensive approach to addressing these requirements that covers the governance of data, operational practices and survivability of software. Isolated Region was just one of the paths we explored to address these requirements.”

Alphabet, Google’s parent company, broke out Google Cloud as its own line item for the first time in its fourth-quarter and full-year earnings report, released in February. It revealed that its run rate grew 53.6% during the last year to just over $10 billion in 2019, making it a more formidable rival to competitors Amazon and Microsoft.

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Anyone running an enterprise business is worshipping at the feet of Amazon Web Services, but in the midst of all the hubbub surrounding AWS, what about other options? 

Microsoft’s platform Azure flies under the radar when it comes to fast and reliable cloud computing services, but pound for pound it easily keeps up with its more widely touted competitors.

As with other cloud computing platforms, Azure enables users to store and process their data on remotely accessible servers maintained by a third party. Cloud adoption has accelerated over the past few years, as companies increasingly outsource the expensive task of maintaining in-house IT infrastructure — and Azure continues to quietly gobble up market share with an unparalleled 154 percent yearly growth rate. In fact, Microsoft itself estimates that 95% of all Fortune 500 companies are already utilising Azure as a cloud computing solution, including Mercedes-Benz parent company Daimler AG and online fashion retailer ASOS. Read more…

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AWS partners with Kenya’s Safaricom on cloud and consulting services

Amazon Web Services has entered a partnership with Safaricom — Kenya’s largest telco, ISP and mobile payment provider — in a collaboration that could spell competition between American cloud providers in Africa.

In a statement to TechCrunch, the East African company framed the arrangement as a “strategic agreement” whereby Safaricom will sell AWS services (primarily cloud) to its East Africa customer network.

Safaricom — whose products include the famed M-Pesa mobile money product — will also become the first Advanced Consulting Partner for the AWS partner network in East Africa.

“The APN is…the program for technology…businesses who leverage AWS to build solutions and services for customers…and sell their AWS offerings by providing valuable business, technical, and marketing support,” Safaricom said.

“We chose to partner with AWS because it offers customers the broadest and deepest cloud platform…This agreement will allow us to accelerate our efforts to enable digital transformation in Kenya,” said Safaricom CEO Michael Joseph.

“Safaricom will be able to offer AWS services to East-African customers, allowing businesses of all sizes to quickly get started on AWS cloud,” the company statement continued.

For now, the information provided by Safaricom is a bit sparse on the why and how of the partnership between the American company and East African mobile, financial and ISP provider.

TechCrunch has an inquiry into Amazon and some additional questions posed to Safaricom, toward additional coverage.

An initial what-this-all-means take on the partnership points to an emerging competition between American cloud service providers to scale in Africa by leveraging networks of local partners.

The most obvious rival to the AWS-Safaricom strategic agreement is the Microsoft -Liquid Telecom collaboration. Since 2017, MS has partnered with the Southern African digital infrastructure company to grow Microsoft’s AWS competitor product — Azure — and offer cloud services to the continent’s startups and established businesses.

MS and Liquid Telecom have focused heavily on the continent’s young tech companies. “We believe startups will be key employers in Africa’s future economy. They’re also our future customers,” Liquid Telecom’s  Head of Innovation Partnerships Oswald Jumira told TechCrunch in 2018.

Amazon hasn’t gone fully live yet with e-commerce services in Africa, but it has aggressively positioned AWS and built a regional client list that includes startups — such as fintech venture Jumo — and large organizations, such Absa and Standard Bank.

Partnering with Safaricom plugs AWS into the network of one East Africa’s most prominent digital companies.

Safaricom, led primarily by its M-Pesa mobile money product, holds remarkable dominance in Kenya, Africa’s 6th largest economy. M-Pesa has 20.5 million customers across a network of 176,000 agents and generates around one-fourth ($531 million) of Safaricom’s ≈ $2.2 billion annual revenues (2018).

Compared to other players — such as Airtel  Money and Equitel Money — M-Pesa has 80% of Kenya’s mobile money agent network, 82% of the country’s active mobile-money subscribers and transfers 80% of Kenya’s mobile-money transactions, per the latest sector statistics.

A number of Safaricom’s clients (including those it provides payments and internet services to) are companies, SMEs and startups.

Extending AWS services to them will play out next to the building of Microsoft’s $100 million Africa Development Center, with an office in Nairobi, announced last year.

Big tech companies are looking at Hollywood as the next stage in their play for the cloud

This week, both Microsoft and Google made moves to woo Hollywood to their cloud computing platforms in the latest act of the unfolding drama over who will win the multi-billion dollar business of the entertainment industry as it moves to the cloud.

Google raised the curtain with a splashy announcement that they’d be setting up their fifth cloud region in the U.S. in Los Angeles. Keeping the focus squarely on tools for artists and designers the company talked up its tools like Zync Render, which Google acquired back in 2014, and Anvato, a video streaming and monetization platform it acquired in 2016.

While Google just launched its LA hub, Microsoft has operated a cloud region in Southern California for a while, and started wooing Hollywood last year at the National Association of Broadcasters conference, according to Tad Brockway, a general manager for Azure’s storage and media business.

Now Microsoft has responded with a play of its own, partnering with the provider of a suite of hosted graphic design and animation software tools called Nimble Collective.

Founded by a former Pixar and DreamWorks animator, Rex Grignon, Nimble launched in 2014 and has raised just under $10 million from investors including the UCLA VC Fund and New Enterprise Associates, according to Crunchbase.

“Microsoft is committed to helping content creators achieve more using the cloud with a partner-focused approach to this industries transformation,” said Tad Brockway, General Manager, Azure Storage, Media and Edge at Microsoft, in a statement. “We’re excited to work with innovators like Nimble Collective to help them transform how animated content is produced, managed and delivered.”

There’s a lot at stake for Microsoft, Google and Amazon as entertainment companies look to migrate to managed computing services. Tech firms like IBM have been pitching the advantages of cloud computing for Hollywood since 2010, but it’s only recently that companies have begun courting the entertainment industry in earnest.

While leaders like Netflix migrated to cloud services in 2012 and 21st Century Fox worked with HP to get its infrastructure on cloud computing, other companies have lagged. Now companies like Microsoft, Google, and Amazon are competing for their business as more companies wake up to the pressures and demands for more flexible technology architectures.

As broadcasters face more demanding consumers, fragmented audiences, and greater time pressures to produce and distribute more content more quickly, cloud architectures for technology infrastructure can provide a solution, tech vendors argue.

Stepping into the breach, cloud computing and technology service providers like Google, Amazon, and Microsoft are trying to buy up startups servicing the entertainment market specifically, or lock in vendors like Nimble through exclusive partnerships that they can leverage to win new customers. For instance, Microsoft bought Avere Systems in January, and Google picked up Anvato in 2016 to woo entertainment companies.

The result should be lower cost tools for a broader swath of the market, and promote more cross-pollination across different geographies, according to Grignon, Nimble’s chief executive.

“That worldwide reach is very important,” Grignon said. “In media and entertainment there are lots of isolated studios around the world. We afford this pathway between the studio in LA and the studio in Bangalore. We open these doorways.”

There are other, more obvious advantages as well. Streaming — exemplified by the relationship between Amazon and Netflix is well understood — but the possibility to bring costs down by moving to cloud architectures holds several other distribution advantages as well as simplifying processes across pre- and post-production, insiders said.