Tag Archives: Oracle

Supplier Report: 6/23/2017

It feels like Amazon is taking over the world – they are buying Whole Foods, they are Gartner’s #1 IaaS provider, they are building a new cloud region in Hong Kong, and they managed to get Wal-mart so mad that the ol’ mart is banning suppliers from doing business with AWS.

I guess it’s good to be the king?

Red Hat is thinking about the future as they grow their services business while Oracle beat market expectations and had quite the stock rally.

Acquisitions

  • Amazon to Buy Whole Foods for $13.7 Billion

    Amazon.com Inc. said on Friday it would buy Whole Foods Market Inc. for $13.7 billion, including debt, instantly transforming the online giant into a major player in the bricks-and-mortar retail sector it has spent years upending.

    The acquisition, Amazon’s largest by far, gives it a network of more than 460 stores that could serve as beachheads for in-store pickup and its distribution network. It would make Amazon an overnight heavyweight in the all-important grocery business, a major spending segment in which it has struggled to gain a foothold because consumers still largely prefer to shop for food in stores.

    https://www.wsj.com/articles/amazon-to-buy-whole-foods-for-13-7-billion-1497618446?mg=prod/accounts-wsj

  • Tokyo Takes Lead in Toshiba Chip-Unit Sale Over China Fears

    The Japanese government-led group wasn’t the highest bidder, according to people briefed on the bids. Taiwan-based iPhone assembler Foxconn Technology Group, formally known as Hon Hai Precision Industry Co. , was ready to offer more, but Japanese government officials said its large China operations raised the risk that technology would leak.

    Toshiba said the Japanese government-led plan is the “best proposal, not only in terms of valuation, but also in respect to certainty of closing, retention of employees, and maintenance of sensitive technology within Japan.”

    https://www.wsj.com/articles/toshiba-picks-government-led-group-as-preferred-bidder-for-chip-unit-1498015576

Artificial Intelligence

  • SAP Ariba and IBM – Global Strategic Alliance to Deliver Cognitive Procurement Solutions
  • Inside Microsoft’s AI Comeback

    Indeed, Microsoft first rolled out its developer tools for bots in the spring of 2016, as did other large tech companies like Facebook. They were billed as a replacement for apps, and many stakeholders really wanted that to be the case. By last spring, most people used the same small group of apps on their smartphones; the promise of bots was that developers and brands could reach new users again, much like they could in the early days of mobile via the app store. But users didn’t play along. And the deep learning that enabled bots to perform the equivalent of magic was improving faster than a paradigm for how to use them could evolved. “Bots are like apps before the file menu existed,” says Cheng. She explains there isn’t a common set of commands, so users are confused about where to find them and how they work. “Web pages, for example, all have back buttons and they do searches. Conversational apps need those same primitives. You need to be like, ‘Okay, what are the five things that I can always do predictably?’” These understood rules are just starting to be determined.

    https://www.wired.com/story/inside-microsofts-ai-comeback

Cloud

  • Wal-Mart to Vendors: Get Off Amazon’s Cloud

    Wal-Mart is telling some technology companies that if they want its business, they can’t run applications for the retailer on Amazon.com Inc.’s leading cloud-computing service, Amazon Web Services, several tech companies say.

    Amazon’s rise as the dominant player in renting on-demand, web-based computing power and storage has put some competitors, such as Netflix Inc., in the unlikely position of relying on a corporate rival as they move to the cloud.

    https://www.wsj.com/articles/wal-mart-to-vendors-get-off-amazons-cloud-1498037402

  • As Amazon, Microsoft and Google Keep Taking Cloud Share, Rivals Are Learning to Specialize

    But whereas Google was alone in the Challengers quadrant last year — everyone besides the big-3 was labeled a Niche Player — Alibaba Group (BABA) , IBM Corp. (IBM) and Oracle Corp. (ORCL) managed to break into the quadrant this year. Some of this may be due to a more lenient attitude towards ranking smaller players on Gartner’s part. But it also might say a thing or two about how each company has learned how to stand out.

    IBM’s ranking appears to have gotten a boost from its efforts to create a next-gen cloud infrastructure for enterprises that relies on proprietary IBM hardware and management software. Gartner also took note of IBM’s ability to use its global footprint to set up cloud data centers in 16 countries, and the potential to use its developer ecosystem to drive adoption of infrastructure services built on top of its Bluemix platform, which initially focused just on cloud app platform (PaaS) services for developers.

    http://realmoney.thestreet.com/articles/06/19/2017/amazon-microsoft-and-google-keep-taking-cloud-share-rivals-are-learning-specialize

  • Amazon announces new AWS Region in Hong Kong

    Amazon announces plans to open an Amazon Web Services Region in Hong Kong next year to make the eighth AWS Region in Asia Pacific.

    https://www.investing.com/news/stock-market-news/amazon-announces-new-aws-region-in-hong-kong-497816

  • Oracle co-CEO Mark Hurd says you need these three things to transition to the cloud

    “We historically used to write big contracts,” Hurd gave as an example. “Now we’re going to do a contract with a company that’s a startup. We’re going to go contract with Lyft for financials, but Lyft doesn’t have a procurement department. They don’t have even an IT department, per se. We can’t show up with a bunch of lawyers and a big, thick document. So we changed our process to go to ‘click to accept.’”

    “That single decision, around here, is like, ‘You’ve got to be kidding,’” he added. “It’s just the way we’ve been trained, it’s what’s in our DNA.”

    https://www.recode.net/2017/6/19/15826776/oracle-co-ceo-mark-hurd-says-you-need-these-three-things-transition-cloud-recode-decode

Datacenter/Hardware

Other

  • Microsoft says “fireball” threat overblown

    Today, Microsoft countered Check Point’s initial analysis that 250 million computers and 20 percent of corporate networks were infected with Fireball.

    “While the threat is real, the reported magnitude of its reach might have been overblown,” said Hamish O’Dea of the Windows Defender research team. Check Point said today that it has been working with Microsoft since being notified of the new analysis.

    “We tried to reassess the number of infections, and from recent data we know for sure that numbers are at least 40 million, but could be much more,” said Maya Horowitz, Group Manager, Check Point Threat Intelligence.

    https://threatpost.com/microsoft-says-fireball-threat-overblown/126472/

  • Oracle leaps to record as cloud transition hits turning point

    Oracle Corp. was late to the cloud revolution, allowing upstarts like Salesforce.com Inc. to find significant market share with software delivered over the internet, and has suffered while making an acquisition-fueled push into the space.

    The Band-Aid appears to have come off Oracle’s wound, however, and the company seems assured that its healed finances will be better than ever. Investors showed belief after Oracle’s fiscal fourth-quarter earnings report Wednesday evening, sending shares that had never cracked $47 in regular trading, adjusted for splits, to more than $51 in after-hours action. If that move holds, Oracle would be worth more than $200 billion.

    http://www.marketwatch.com/story/oracle-leaps-to-record-as-cloud-transition-hits-turning-point-2017-06-21

  • Former EMC Chief Joe Tucci Is Joining This VC Firm

    Joe Tucci, who left his long-time gig as chairman and CEO of EMC after selling the company to Dell, is now special adviser to 83North, an investment firm focusing on European and Israeli startups.

    83North, formerly known as Greylock IL, has offices in London, New York, and Tel Aviv. It has backed startups including Hybris, the German e-commerce company bought by SAP in 2013, and Israeli storage startup ScaleIO, which EMC acquired the same year.

    http://fortune.com/2017/06/19/emc-joe-tucci-vc-83-north/

  • Meg Whitman Cedes One of Her HPE Titles To This Exec

    Hewlett-Packard Enterprise has promoted a 22-year veteran of the company to president. The move comes as HPE continues to sort out its businesses after a series of acquisitions, divestitures, and layoffs.

    The new president, Antonio Neri, was most recently executive vice president and general manager of HPE’s Enterprise group, which sells data center servers, storage, networking to corporate customers.

    http://fortune.com/2017/06/21/meg-whitman-names-new-hpe-president/

  • Red Hat’s comeback rolls on, thanks to a surging application development business

    The Raleigh, North Carolina-based company actually quickened growth in sales of subscriptions for application development tools from the pace it set in its fiscal first quarter. Application development-related and other emerging technology subscription revenues were $139 million, up 41 percent year-over-year and slightly above the previous quarter’s 40 percent growth pace. Subscription revenue for Red Hat’s core infrastructure business rose 14 percent, to $458 million, an impressive gain on top of an already large base.

    Chief Executive Jim Whitehurst  said Red Hat is shifting its business from being a low-cost provider of open-source alternative software to a strategic platform for cloud migration. “We’ve moved from having a seat the table with the purchasing department to having a seat at the table with the CIO,” he said. Sales of core infrastructure platforms like Red Hat Enterprise Linux and OpenStack, he added, “provides a tailwind for our other offerings.”

    https://siliconangle.com/blog/2017/06/20/red-hat-continues-comeback-strong-quarterly-results-driven-surging-application-development-business/

Photo: Benjamin Davies

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Supplier Report: 6/16/2017

Flush with cash, SoftBank is starting to execute on their 300 year plan. Softbank took Boston Dynamics off of Google’s hands… if you are going to have a multi-century strategy, it makes sense to buy a robotics company.

Dell’s financials are down $1.5b as they pay off the massive debt incurred to buy EMC. Slack is taking in $500M of funding as AWS and Microsoft contemplate buying the company. Verizon has finally closed their acquisition of Yahoo, Marissa Mayer is officially gone.

Acquisitions

  • SoftBank to Buy Two Pioneers in Advanced Robots From Google Parent

    SoftBank Group Corp. said it would buy Boston Dynamics from Alphabet Inc. The company builds robots that can perform feats such as pirouetting and climbing stairs, highlighting the Japanese company’s long-term investment horizon.

    Price and other terms weren’t disclosed.

    The deal comes more than a year after the Google parent dissolved its robotics group and started seeking buyers for Boston Dynamics, the unit at the centerpiece of the program. People close to Alphabet have said the company decided to sell Boston Dynamics when it resisted developing a commercial product within the next several years.

    The deal also includes Schaft, a Japanese robotics maker that achieved fame by winning a challenge held by the U.S. Defense Advanced Research Projects Agency in 2013 for robots to perform rescue tasks.

    https://www.wsj.com/articles/softbank-to-buy-two-pioneers-in-advanced-robots-1496972870?mg=prod/accounts-wsj

  • PokitDok Acquires Pharmacy and Software Assets of Oration PBC

    PokitDok, an API platform to free, secure, and unify data has acquired the pharmacy and software assets of Oration PBC. The acquisition enables PokitDok to complete support for delivery of essential commercial pharmacy benefit data, via its APIs, so organizations, providers and consumers have tools to make better healthcare and treatment decisions. Financial terms of the acquisition were not disclosed.

    http://hitconsultant.net/2017/06/13/pokitdok-acquires-pharmacy-software-assets-oration-pbc/

Cloud

  • IBM will put connected car data to better use

    As cars get smarter, we’re going to have to deal with all of the information our daily drives create in a way we’ve never had to bother with before. Thankfully, IBM is offering to be the middleman that represents our vehicles in the confusing new world of automotive cloud telematics. The company has signed a deal with BMW that will see the BMW CarData platform connect to IBM’s Bluemix cloud. The idea is that IBM will host and analyze your information and then pass it to third parties — with your consent — when required.

    https://www.engadget.com/2017/06/14/ibm-bmw-connected-car-data/

  • Gartner’s IaaS Magic Quadrant includes Alibaba, IBM

    “The IBM Cloud experience is currently disjointed,” Gartner writes, noting that the company hasn’t updated its SoftLayer infrastructure since its purchase two years ago.

    https://seekingalpha.com/news/3273838-gartners-iaas-magic-quadrant-includes-alibaba-ibm

Datacenter

  • IBM and HPE’s Server Businesses Aren’t Just Pressured By the Cloud Anymore

    It also wasn’t too surprising that sales of servers designed by cloud giants and supplied by ODMs grew strongly following a Q4 lull, as the likes of Amazon and Facebook continued spending heavily on capex. IDC estimated sales of such servers, which it refers to as ODM Direct, grew 41.8% to $1.2 billion (10.4% of industry revenue). It added one unnamed cloud firm single-handedly accounted for over 10% of the 2.21 million servers shipped during the quarter.

    What was, surprising, though is that both firms reported Dell, the world’s second-biggest server vendor, saw meaningful sales growth in spite of the headwinds faced by peers. IDC estimated Dell’s server sales grew 4.7% to $2.37 billion, leading its market share to rise to 20.1% from 18.3% a year ago. By contrast, the firm had estimated Dell’s server sales were roughly flat in Q4. Gartner gave Dell a 19% Q1 share, up from 17.3%.

    http://realmoney.thestreet.com/articles/06/09/2017/ibm-and-hpes-server-businesses-arent-just-pressured-cloud-anymore

  • Dell slumps to $1.5bn operating loss in first quarter in new structure

    For its first quarter ending 5 May 2017, the Texas-based giant posted an operating loss of $1.5bn on revenues of $17.8bn. Dell is a private company, but still divulges its numbers, partly because it now owns VMware courtesy of its recent merger with EMC.

    Dell’s Client Solutions Group saw revenue rise six per cent year on year to $9.1bn and operating income hit $374m.

    https://www.channelnomics.eu/channelnomics-eu/news/3011688/dell-grows-but-profits-hit-by-component-cost-headwinds

Software/SaaS

Other

  • IBM’s Harriet Green named top 100 creative people for work with Watson

    “I don’t much believe in artificial intelligence,” says Harriet Green, who is one of the executives helping to run IBM’s AI platform. “I believe in augmented intelligence. With Watson, we can augment capabilities that clients already have.”

    “We have reached a tipping point with IoT innovation,” Green said.

    “IBM Watson IoT has more than 6,000 clients and partners around the world, many who are eager to “co-innovate,” she added. IBM is investing $3 billion to prepare Watson for IoT.

    This past February, Green helped IBM open its $200 million global headquarters in Munich, Germany. The center houses the Watson Internet of Things business. It is designed to drive collaboration and innovation with dozens of clients and partners in what IBM executives call “first-ever cognitive collaboratories.”

    http://www.healthcareitnews.com/news/ibms-harriet-green-named-top-100-creative-people-work-watson

  • Uber just pissed off dozens of longtime employees; now they’re gunning for management

    Earlier this week, at a staff meeting in San Francisco, Uber executives revealed to the company’s 12,000 employees that 20 of their colleagues had been fired and that 57 are still being probed over harassment, discrimination and inappropriate behavior, following a string of accusations that Uber had created a toxic workplace and allowed complaints to go unaddressed for years.

    Yesterday, Uber fired senior executive Eric Alexander after it was leaked to Recode that Alexander had obtained the medical records of an Uber passenger in India who was raped in 2014 by her driver.

    Recode also reported that Alexander had shared the woman’s file with Kalanick and his senior vice president, Emil Michael, and that the three men suspected the woman of working with Uber’s regional competitor in India, Ola, to hamper its chances of success there.

    https://techcrunch.com/2017/06/08/uber-just-pissed-off-dozens-of-longtime-employees-now-theyre-gunning-for-management/?ncid=rss

  • Verizon Seals $4.5 Billion Yahoo Purchase as Mayer Heads Out

    The companies officially closed the $4.5 billion agreement Tuesday, following Yahoo shareholder approval last week. Yahoo properties including Sports and Finance will become part of a new Verizon unit called Oath, which is home to brands like AOL, TechCrunch and the Huffington Post. Oath will be overseen by former AOL Chief Executive Officer Tim Armstrong, while Yahoo CEO Marissa Mayer, 42, is stepping down.

    https://www.bloomberg.com/news/articles/2017-06-13/verizon-seals-4-5-billion-yahoo-purchase-as-mayer-heads-out
    Verizon Launches New Ad and Content Unit as Yahoo Deal Closes

    Distribution will also be a factor: Soon, some of Oath’s content brands will be automatically available on the “decktop” of Verizon subscribers’ phones through its AppFlash app, for example. Verizon’s go90 mobile video app, will also become more integrated with Oath’s content properties. And entirely new mobile content brands are set to launch before the end of the year, created by Oath’s internal Factory unit.

    https://www.wsj.com/articles/verizon-launches-new-ad-and-content-unit-as-yahoo-deal-completes-1497362908

Photo: Alex Knight

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Supplier Report: 6/2/2017

Should investors lay IBM’s current problem’s at Ginni Rometty’s feet or is her predecessor Sam Palmisano truly to blame? While investors are busy finger-pointing, IBM’s global services division declined another 2%.

But it wasn’t all bad news for big blue, they acquired a company to help bolster their “Connections” platform and another news source is touting just how good Watson is at suggesting cancer treatments.

Meanwhile in Japan, Toshiba is still struggling to sell off their memory chip business in a last-ditch effort to keep the company afloat and NTT quietly invested in NoSQL database provider MarkLogic.

Acquisitions

  • IBM Acquires XCC Digital Work Hub to Strengthen IBM Connections

    Armonk, NY-based IBM acquired the XCC technology from its partner, Cologne, Germany-based TIMETOACT GROUP. XCC is a digital workplace hub that IBM officials said will create a “single destination” personalized homepage for employees. The company made the announcement at its DNUG44 collaboration conference in Berlin this morning.

    XCC’s hub will be renamed the IBM Connections Engagement Center and will live under the portfolio of IBM Connections, IBM’s enterprise collaboration suite that competes with the likes of Microsoft, Slack and Atlassian.

    http://www.cmswire.com/digital-workplace/ibm-acquires-xcc-digital-work-hub-to-strengthen-ibm-connections/

  • Micro Focus’ $8.8bn software acquisition approved by investors

    The approval for the $8.8bn deal comes only weeks after Micro Focus issued a damaging warning on its growth prospects because of a slowdown in sales at the former Hewlett-Packard assets.

    The investor meeting, held near St Pauls in London, was attended by only one shareholder. Approval for the multibillion merger and a $500m return of cash to shareholders was passed without objection in less than 10 minutes. The vote was passed with a 99.9 per cent approval.

    https://www.ft.com/content/976c93f8-4221-11e7-82b6-896b95f30f58

  • Dell further ties itself to VMware

    Initial reports set the price at $67 billion, but Dell now says it was just over $58 billion. Either way, a good portion of the funding was borrowed.Selling off VMware – at its current market cap of about $34 billion – would certainly change the math, but so too would losing VMware’s future potential contributions.

    VMware still functions as its own publicly traded company, as it did under EMC, but it is now majority-owned by Dell Technologies. And unlike other parts of Dell’s new empire, VMware is growing at 10 percent a year.

    http://www.wbjournal.com/article/20170529/PRINTEDITION/170529955/1002

  • Intel CEO explains why he spent $15 billion on Mobileye

    Krzanich said that someday “if you get a ransomware or some kind of virus on one portion of the device,” Intel will not only have backups, but they could “refresh your car on the fly.” While he acknowledged that there are some potential privacy concerns, Krzanich believes that connected cars will be “much safer.”

    “In order for those cars to drive, they do have to look,” said Krzanich about self-driving cars. “There’s a lot of social good that can come out of this.”

    https://techcrunch.com/2017/06/01/intel-ceo-explains-why-he-spent-15-billion-on-mobileye/?ncid=rss

  • NTT Data announces strategic investment in NoSQL database provider MarkLogic

    MarkLogic positions itself as a database system for integrating data from various data silos, something that’s a growing problem for large enterprises as they look into how they can get the most value out of their data. Over the years (and often because of acquisitions), different groups in a company often use different database systems, and now they are looking for ways to bring all of this information together again. Typically, the way to do that is by bringing that data into a schema-less NoSQL database, which is where MarkLogic comes in.

    https://techcrunch.com/2017/05/31/ntt-data-announces-strategic-investment-in-nosql-database-provider-marklogic/?ncid=rss

  • Toshiba Fights to Clear Way for Chip-Unit Sale

    Toshiba said it would transfer the joint venture back to the core Toshiba group, and remove that part of its chip unit from a sale. The company says the joint venture includes manufacturing equipment, but not the key NAND flash manufacturing processes or the plants or engineers in Japan.

    The move defuses Western Digital’s claim that the sale of the chip unit to a third party would be a breach of its joint venture rights, Toshiba’s lawyers said in a letter dated Wednesday.

    https://www.wsj.com/articles/toshiba-makes-legal-concession-on-sale-of-memory-chip-unit-1496239072?mg=prod/accounts-wsj

Artificial Intelligence

  • IBM’s Watson is really good at creating cancer treatment plans

    In a handful of studies being presented at ASCO, researchers show that Watson for Oncology is pretty dang good at recommending treatments for a variety of different cancers. From research done in India, Watson’s treatment recommendations were in agreement with those of physicians 96 percent of the time for lung cancer, 93 percent of the time for rectal cancer, and 81 percent of the time for colon cancer.

    And there were comparable rates of agreement for colorectal, lung, breast and gastric cancer treatments in a Thai-based study. Additionally, Watson was able to screen breast and lung cancer patients for clinical trial eligibility 78 percent faster than a human, reducing screening time from 110 minutes down to just 24.

    https://www.engadget.com/2017/06/01/ibm-watson-cancer-treatment-plans/

  • Google has reportedly launched a new AI-focused venture capital program

    According to Axios, Patterson and company will reportedly be co-investing with GV when it makes sense to do so. Check sizes, it says, will range from $1 million and $10 million to start, though it isn’t yet clear how much Google plans to commit to the program, yearly or otherwise.

    https://techcrunch.com/2017/05/26/google-has-reportedly-launched-a-new-ai-focused-venture-capital-program/?ncid=rss

Cloud

  • VMware to rally nearly 20% on Amazon partnership, analyst says

    “The recent partnership between VMware and AWS [Amazon Web Services] has been received with great positivity and excitement, according to our channel work,” analyst Jayson Noland wrote in a note to clients Wednesday. “Naturally, a co-development between the respective leaders in private and public clouds should offer an unparalleled level of seamlessness in hybrid cloud mobility, which to date remains one of the largest challenges to enterprise cloud deployment.”

    http://www.cnbc.com/2017/05/31/cloud-play-vmware-to-rally-nearly-20-percent-on-amazon-partnership-analyst-says.html

  • Oracle Bucks the Pricing Trend in the Cloud

    Oracle has been acting as if to buck cloud computing pricing trends. Amazon and Microsoft have been waging cloud pricing wars, with Amazon recently trimming AWS costs by as much as 21% on certain services.

    However, Oracle has been hiking prices. Earlier this year, the company updated its licensing policy in a fashion that dramatically increased the cost of running Oracle software on AWS and Azure, Microsoft’s cloud platform. Oracle doubled the cost of running its database on these foreign clouds.

    http://marketrealist.com/2017/05/oracle-bucks-pricing-trend-cloud/

Datacenter

  • MongoDB Taking Share From Oracle In $40 Billion Market

    When you take into account the full cost to a company, MongoDB offered an irresistible bargain. “We believe that the cost of the software should equal that of the hardware. We typically charge $5,000 per server per year for the software to run on a server that costs about $5,000. Our competition charges hundreds of thousands of dollars per server-year plus $50,000 a year in maintenance and their software runs on $10,000 servers,” said Schireson.

    Regrettably, MongoDB declined to provide revenue growth details. But its headcount growth suggested that demand for the product was soaring. Schireson argued, “When I joined as CEO in 2011, the company had 20 employees. That went to 100 by the end of 2011 and 200 by the end of 2012. [As of October 2013] we have 320 people and expect to end the year at between 350 and 400. And we plan to add 200 more in 2014. We now have 600 customers.”

    https://www.forbes.com/sites/petercohan/2017/05/30/mongodb-taking-share-from-oracle-in-40-billion-market/#2e06dd5a3156

  • IBM believes that hybrid cloud is the future of computing

    “When we work with private and public clouds on workload assessment, customers think of what would go Hybrid. We do studies and assessment with our customers every day. So, there is no doubt or question in our mind that hybrid is the way to go,” Vikas Arora, Cloud Business Leader for IBM India and South Asia, told IANS.

    He said IBM believes that it has the best of enterprise cloud and hybrid is a very core capability that it has, adding that there is a need of a global footprint of datacenters.

    http://tech.firstpost.com/news-analysis/ibm-believes-that-hybrid-cloud-is-the-future-of-computing-378615.html

  • Red Hat director talks Reactive and changing middleware layer

    Sharples also shared his opinion on how the middleware layer is changing, such as the shift away from enterprise service buses (ESBs). The ESB, he said, became a burden in the eyes of many software administrators who saw it as a single “choke point” and potential source of universal failure.

    “It became that part of your application code was now embedded within this infrastructure,” Sharples said. “So, it didn’t provide a good separation of concerns.”

    http://searchmicroservices.techtarget.com/video/Red-Hat-director-talks-Reactive-and-changing-middleware-layer

  • HPE meets lowered expectations as execs insist worst is over, but investors not so sure

    HPE’s results were expected to be dismal, and the company surprised no one with earnings that met Wall Street expectations on a 13 percent plunge in revenue compared to the same quarter last year. About the only positive news was that net revenues of $9.9 billion slightly exceeded consensus estimates of $9.64 billion, and that the company reaffirmed its earnings guidance for the rest of the year.

    Exact comparisons to last year’s figures aren’t practical because HPE completed the sale of its services business to Computer Sciences Corp. just last month, shedding 100,000 employees in the process. In after-hours trading, the stock declined a little more than 2 percent.

    https://siliconangle.com/blog/2017/05/31/hpe-meets-lowered-expectations-execs-insist-worst/

Software/SaaS

  • Blockchains are the new Linux, not the new Internet

    Decentralized blockchain solutions are vastly more democratic, and more technically compelling, than the hermetically-sealed, walled-garden, Stack-ruled Internet of today. Similarly, open-source Linux was vastly more democratic, and more technically compelling, than the Microsoft and Apple OSes which ruled computing at the time. But nobody used it except a tiny coterie of hackers. It was too clunky; too complicated; too counterintuitive; required jumping through too many hoops — and Linux’s dirty secret was that the mainstream solutions were, in fact, actually fine, for most people.

    Sound familiar? Today there’s a lot of work going into decentralized distributed storage keyed on blockchain indexes; Storj, Sia, Blockstack, et al. This is amazing, groundbreaking work… but why would an ordinary person, one already comfortable with Box or Dropbox, switch over to Storj or Blockstack? The centralized solution works just fine for them, and, because it’s centralized, they know who to call if something goes wrong. Blockstack in particular is more than “just” storage … but what compelling pain point is it solving for the average user?

    https://techcrunch.com/2017/05/28/double-double-cryptocoin-bubble/?ncid=rss

  • Concord wants to become the Google Docs of contracts

    Concord wants to centralize everything related to contract management into one service, and this service is supposed to work for all sorts of teams. Companies like Just Eat have been using it across the board, from the sales team to the HR team.

    And it starts with writing new contracts. Concord lets you create and edit contracts directly in your browser. If you want to send it to a coworker, you just share the Concord document. The platform then tracks changes and versions so that everybody across your organization stays on the same page. And those contracts are legally binding.

    https://techcrunch.com/2017/05/31/concord-wants-to-become-the-google-docs-of-contracts/?ncid=rss

Other

  • What’s Stopping IBM’s Global Business Services from Growing?

    The GBS segment’s revenue fell 2% to $4.0 billion in the quarter. The segment encompasses consulting, global process services, and application management services. It provides customers with these services by integrating them with the company’s offerings, including Watson, cloud, blockchain, and technology services.

    The migration of customers from big on-premises projects and models to the cloud system has led to a fall in IBM’s traditional back office implementation business.

    http://marketrealist.com/2017/06/whats-stopping-ibms-global-business-services-from-growing/

  • Is Management Really to Blame for IBM’s Woes?

    Shares of IBM have declined 8% this year, while the S&P 500 has gained 8%. The reasons are easy to see — the company’s revenue has fallen annually for 20 straight quarters, Warren Buffett sold about 30% of Berkshire’s stake in February, and Moody’s downgraded its credit rating in early May.

    Amid all those negative headlines, it’s easy to blame IBM’s management for its current woes. However, it makes more sense to blame former CEO Sam Palmisano for most of those problems. Rometty initially waited too long to abandon Palmisano’s quixotic plan, but her moves over the past three years indicate that she knows how to turn around the aging company. Therefore, investors should keep those facts in mind before assuming that IBM would fare better under new management.

    https://www.fool.com/investing/2017/05/27/is-management-really-to-blame-for-ibms-woes.aspx

Photo: Hermes Rivera

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SourceCast: Episode 71: Really Oracle?

Last week, Oracle published a letter to FCC Chairman Ajit Pai supporting his plans to repeal net neutrality protections. On this episode, we discuss Oracle’s potential motivations.

Photo: Quino Al

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Supplier Report: 5/13/2017

Last week we covered Oracle’s strategic partnership with AT&T, this week Oracle announced support to eliminate the 2015 net neutrality regulations… coincidence? I think not.

AT&T needs all the support they can get after having 5G bandwidth company Straight Path ripped right from their grasp by competitor Verizon.

Oracle isn’t having a great week either as Microsoft announced a new database platform designed “for the future”.

Acquisitions

  • Will the tech acquisition spree continue?

    But there was some disappointment with cross-border acquisitions. “Deal activity from Asian-Pacific investors declined notably in Q1 2017, illustrating uncertainty in American markets due to the new administration,” according to the PwC report. A recent survey by law firm Morrison & Foerster similarly found that “M&A between the two largest economies in the world, the U.S. and China, is expected to be particularly difficult in the coming years.”

    The challenge with Chinese buyers stems from a “a combination of uncertainty introduced by Trump’s policies and restrictions imposed by Chinese authorities on outflow of capital from China,” said Robert Townsend, co-chair of Morrison & Foerster’s Global M&A Practice Group. But ample technology deal activity in the U.S. is expected to continue.

    https://techcrunch.com/2017/05/07/will-the-tech-acquisition-spree-continue/?ncid=rss

  • Verizon reportedly wins bidding war for Straight Path with $3.1 billion offer

    AT&T announced last month that it had agreed to buy Straight Path for $1.6 billion, but after Verizon placed a bid for nearly double that amount on Monday, AT&T declined to match it, reports the Wall Street Journal.

    The telecoms are interested in Straight Path because the Virginia-based company holds valuable spectrum licenses that will play an important role in laying the groundwork for 5G services. Straight Path began reviewing “strategic alternatives to maximize shareholder value” (i.e. searching for a buyer) in January after it was fined $100 million by the Federal Communications Commission for failing to deploy the wireless services required by its spectrum licenses, a practice called “spectrum squatting.”

    https://techcrunch.com/2017/05/11/verizon-reportedly-wins-bidding-war-for-straight-path-with-3-1-billion-offer/

  • Cisco acquires conversational AI startup MindMeld for $125 million

    This morning Cisco announced that it is buying MindMeld for $125 million. Founded in 2011, MindMeld helps businesses to build conversational interfaces with cloud-based services.

    MindMeld, originally called Expect Labs, was launched on the stage of TechCrunch Disrupt SF 2012. At that time the startup wanted to build an iPad app that could listen in on your conversations and provide relevant contextual information. Since then the company has expanded its offerings to include a suite of APIs for parsing, reasoning about and generating language.

    https://techcrunch.com/2017/05/11/cisco-acquires-conversational-ai-startup-mindmeld-for-125-million/?ncid=rss

Artificial Intelligence

  • A.I. is in a ‘golden age’ and solving problems that were once in the realm of sci-fi, Jeff Bezos says

    At Amazon, Bezos said that “cool” developments like Alexa and its Prime Air delivery drones use “tremendous amounts” of AI. But machine learning is being deployed across the company.

    “I would say, a lot of the value that we’re getting from machine learning is actually happening kind of beneath the surface. It is things like improved search results, improved product recommendations for customers, improved forecasting for inventory management, and literally hundreds of other things beneath the surface,” Bezos said.

    http://www.cnbc.com/2017/05/08/amazon-jeff-bezos-artificial-intelligence-ai-golden-age.html

  • Buffett says IBM’s Watson will have greatest value when it replaces human labor

    “I would think the biggest value will come in when it actually replaces human labor, and machines don’t come round annually and ask for higher wages, and they don’t need health care, and maybe a little maintenance,” Buffett said on CNBC’s “Squawk Box.”

    “It should replace people in a big way, unless some other products do the same thing,” he said, noting Watson’s potential for reading X-rays faster and better than humans.

    http://www.cnbc.com/2017/05/08/buffett-says-ibms-watson-will-have-greatest-value-when-it-replaces-human-labor.html

  • Robots Aren’t Destroying Enough Jobs

    Monthly job creation has averaged 185,000 this year, more than double what the U.S. can sustain given its demographics. This has driven unemployment down to 4.4%, a 10-year low and below most estimates of “full employment.” Growing labor shortages have boosted the typical worker’s annual wage gain to more than 3% now from 2% in 2012, according to the Federal Reserve Bank of Atlanta.

    If automation were rapidly displacing workers, the productivity of the remaining workers ought to be growing rapidly. Instead, growth in productivity—worker output per hour—has been dismal in almost every sector, including manufacturing.

    https://www.wsj.com/articles/robots-arent-destroying-enough-jobs-1494434982

Cloud

  • Oracle’s next big business is selling your info

    All of that adds up to a database of 5 billion consumer profiles, fed by 15 million data sources. Not every profile corresponds to a unique person — people can have multiple profiles — but Oracle has information on billions of people, according to Eric Roza, the vice president of Data Cloud. Using data science techniques, Oracle works to match activity from one browser to others, so companies can make sure the same ads get shown to people on their smartphones, tablets, and computers.

    Oracle sees Data Cloud as a key part of its future. The service is being used to help advertisers and publishers better target ads, and it’s attractive to businesses because it’s not tied to a major advertising platform like Google’s or Facebook’s.

    http://www.cio.com/article/3195001/cloud-computing/oracles-next-big-business-is-selling-your-info.html

Software/SaaS

  • Micro Focus shares plunge on HP Enterprise software revenue warning

    “Whilst the short term decline in licence is disappointing it is not unusual given the level of change being undertaken.”

    Its shares – up more than 70% over the past year – were up to 12% down in early trading on Tuesday before later recovering some of those losses to close 5.6% lower.

    http://news.sky.com/story/micro-focus-drops-12-on-hp-enterprise-software-revenue-warning-10869878

  • With Cosmos DB, Microsoft wants to build one database to rule them all

    Cosmos DB is, in Shukla’s words, “a major leap forward” from what DocumentDB was able to offer. DocumentDB only offered a subset of the capabilities of what is now Cosmos DB. While DocumentDB was essentially a store for JSON data, Cosmos DB goes much further. It extends the idea of an index-free database system and adds support for various new data types that allows Cosmos DB enough flexibility to work as a graph database or key-value database, for example. And for those who are looking to store more traditional columnar relational data, Cosmos DB will also offer support for those.

    https://techcrunch.com/2017/05/10/with-cosmos-db-microsoft-wants-to-build-one-database-to-rule-them-all/?ncid=rss

Other

  • Oracle Supports FCC In Net Neutrality Rollback

    According to Oracle, Pai’s plan to remove broadband providers from the FCC’s regulatory jurisdiction “will eliminate unnecessary burdens on, and competitive imbalances for, ISPs internet service providers while enhancing the consumer experience and driving investment.”

    Telecom companies, which have long opposed the rules, are urging Pai to roll them back, the report said.

    http://www.siliconindia.com/news/business/Oracle-Supports-FCC-In-Net-Neutrality-Rollback-nid-202804-cid-3.html

    Hmmm… this can’t possibly be related to Oracle’s recent strategic partnership announcement with AT&T could it?

  • ​CEO Whitman: HPE ready to move past ‘executional challenges’, refocus on growth

    She said the company would not be targeting specifically to make up for the revenue, but would instead focus on growing its footprint in edge and IoT, for instance, as well as through strategic acquisitions.

    In addition to the company’s recent buys, which included Nimble Storage, Niara, and Cloud Cruiser, she added that HPE would continue to look for potential acquisitions, including in the Asia-Pacific region, to further drive its strategy around edge and hybrid IT.

    http://www.zdnet.com/article/ceo-whitman-hpe-ready-to-move-past-executional-challenges-refocus-on-growth/

  • Jim Cramer Talks IBM’s Future As Buffett Cuts His Stake

    Perhaps most important, Cramer believes that so long IBM had the “blessing” of its biggest shareholder in Buffett then the company had time to spur the necessary changes to move the company forward.

    But after Buffett cut his stake he is no longer IBM’s shareholder and that title goes to the index fund Vanguard. As such, IBM’s CEO Ginni Rometty may not be as “protected as she tries to get the job done.” But on the other hand, Cramer thinks that Rometty could “feel liberated” to go out and acquire a cloud-based company that “would change the company’s complexion overnight.”

    https://www.benzinga.com/media/cnbc/17/05/9421246/jim-cramer-on-ibms-future-after-buffett-cut-stake
    Dear IBM, do not even think about buying twitter. Love, Joey

Photo: Dimitar Belchev

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