Tag Archives: WorkDay

Supplier Report: 3/18/2017

Oracle had a big week with their stock rallying thanks to cloud growth driven by the acquisition of NetSuite. This put Mr. Ellison in a bragging mood which led to some shots against Microsoft and Amazon (both companies are currently beating Oracle in cloud revenue and customers).

On the topic of Microsoft, there are rumors that they may purchase Citrix. Citrix quietly put word to the market that they would entertain a sale.  There is some logic to Microsoft owning Citrix, but is the price right?

IBM is looking to stay on President Trump’s good side by committing to hire 2000 veterans over the next 4 years, but do the vets want to work for big blue?

Acquisitions

  • Could and should Microsoft buy Citrix?

    Bloomberg, citing anonymous sources, reported on March 13 that Citrix is working with Goldman Sachs to seek potential suitors for the company.

    Microsoft and Citrix have worked closely for years on remote desktop services. The pair have been working on delivering the promised Windows 10 desktop on Azure offering, as well as a replacement for Microsoft’s Azure RemoteApp.

    There have been many industry watchers who’ve been advocating for and expecting Microsoft to buy Citrix for nearly a decade, if not longer.

    http://www.zdnet.com/article/could-and-should-microsoft-buy-citrix/

  • Intel buys Mobileye in $15.3B deal, moves its automotive unit to Israel

    Specifically, “Under the terms of the agreement, a subsidiary of Intel will commence a tender offer to acquire all of the issued and outstanding ordinary shares of Mobileye for $63.54 per share in cash, representing a fully-diluted equity value of approximately $15.3 billion and an enterprise value of $14.7 billion,” the company noted in a statement. The deal is expected to close in about nine months, Intel said.

    Mobileye today covers a range of technology and services, including sensor fusion, mapping, front- and rear-facing camera tech and, beginning in 2018, crowdsourcing data for high-definition maps, as well as driving policy intelligence underlying driving decisions. This deal will bring under Intel’s umbrella not only a much bigger range of the different pieces that go into autonomous driving systems, but also a number of relationships with automakers. In the call today, Mobileye’s CTO and co-founder Amnon Shashua said the company is working with 27 car manufacturers, including 10 production programs with Audi, BMW and others going into 2017.

    https://techcrunch.com/2017/03/13/reports-intel-buying-mobileye-for-up-to-16b-to-expand-in-self-driving-tech/?ncid=rss

Artificial Intelligence

  • Microsoft Applies AI in the Healthcare Industry to Realize Care Anywhere

    As the aging population, has become more active in the society, Microsoft Taiwan has also devoted itself to developing a more comprehensive medical ecosystem. With the aid of technology such as AI, natural speech, and robots, time spent on waiting to receive medical care, diagnosis, prescribing, and applying for healthcare coverage is decreased and the processes are optimized. These types of technology can effective assist medical personnel in monitoring the patient’s condition after appointments, which leads to more effective home healthcare, a decrease in the number of hospital visits or examinations, and an overall reduction in wasted medical resources. Furthermore, patients are able to enjoy remote healthcare in the comfort of their homes. For both service providers and users of the healthcare system, the application of new technologies paves the way to achieving equal and efficient medical resource allocation.”

    http://finance.yahoo.com/news/microsoft-applies-ai-healthcare-industry-140700837.html

Cloud

  • Amazon Chime – Did AWS Buy the Wrong Company?

    So, how is AWS being disruptive? It’s not the offering — a Brady Bunch-style format for viewing who’s on a call is not at all cutting edge. Amazon Chime is perfectly fine for small-scale, cloud-based meetings, but doesn’t have enough differentiation or hooks to seriously challenge the established enterprise players. Rather, what’s disruptive is AWS’s go-to-market strategy. Cloud lowers the barriers to entry, especially when you run a massive public cloud. All AWS has to do is just drop Chime into the market and see what happens.

    http://www.nojitter.com/post/240172487/amazon-chime–did-aws-buy-the-wrong-company

  • Cloud computing growth lifts Oracle’s profits, and its shares

    As in previous quarters, Oracle showed particular strength in two cloud categories: online applications known as software as a service, or SaaS, and platform as a service, or PaaS, a collection of technologies for creating and deploying those applications. In those two areas, Oracle’s revenues shot up 73 percent, to $1 billion, the first time they’ve topped that milestone. The growth was likely helped by Oracle’s $9.3 billion NetSuite acquisition last year, since this is the first quarter after the closing of the deal.

    http://siliconangle.com/blog/2017/03/15/cloud-computing-growth-lifts-oracles-profits-shares/
    Oracle’s Larry Ellison Belittles Amazon and Microsoft

    On an earnings phone call with analysts, Ellison said that Oracle now has “a huge technology lead” over Amazon Web Services and Microsoft’s Azure cloud computing service. Several times, he bragged that Oracle’s revamped cloud computing service is both cheaper and faster than the competition, and that it will eventually become Oracle’s crown jewel.

    The Oracle co-founder is known for his grandiose statements and prodding of his business adversaries. But his comments on Wednesday entirely glossed over the fact that both Amazon and Microsoft’s cloud businesses are growing rapidly—and inconveniently to Oracle, exponentially bigger.

    http://fortune.com/2017/03/15/oracle-larry-ellison-amazon-microsoft/

Datacenter

  • Quantum computers are here — but what are they good for?

    Quantum computers can be significantly faster and could eventually replace today’s PCs and servers. Quantum computing is one way to advance computing as today’s systems reach their physical and structural limits.

    Progress has been slow, but researchers are discovering uses for existing quantum computers like D-Wave’s 2000Q, which has 2,000 qubits, and IBM’s 5-qubit systems. Both are based on different technologies, with IBM’s system being complex and more advanced in terms of technology. D-Wave’s quantum annealing system is a more practical and quick way to quantum computing but is much faster than today’s PCs.

    http://www.pcworld.com/article/3180194/hardware/with-quantum-computers-here-developers-seek-uses.html

Software/SaaS

  • IBM pledge: Not only does Notes/Domino live, there’s no end in sight

    “Notes/Domino 9.0 shipped in 2013, and IBM’s normal five-year support model meant that mainstream support could have ended in 2018. However, we know how important these products are to your business, and we are continuing to invest in new functionality. For IBM Notes/Domino 9.0, we have announced that product support will be extended through at least 2021, and extended support through at least 2024. There is no end of life planned for Notes and Domino, and we will continue to update the timeline for support as appropriate based on future releases and market requirements.”

    http://www.networkworld.com/article/3179611/software/ibm-pledge-not-only-does-notes-domino-live-there-s-no-end-in-sight.html
    If I walked into a company that is still rocking Lotus for their email (not some archaic forms system), I honestly might just walk right out.

  • Seeking Alpha recommends avoiding Workday

    If you follow the enterprise software space, you’ll notice one thing: Oracle talks much more often about Workday than Salesforce. The reason is simple–the size of the prize is much bigger for ERP cloud applications, where WDAY competes and Salesforce doesn’t. IDC estimates that the ERP and HCM markets are almost 4x larger than the sales and service segments of enterprise software (and Salesforce currently controls the sales and service segments). Our worry is that Oracle is way ahead of the game in the ERP segment relative to Workday. Oracle has rewritten all of its ERP applications for the cloud. It did the same for its HCM and Enterprise Performance Management (EPM) applications, which are all now a part of its integrated SaaS suite. WDAY started with HCM, and it now offers some elements of ERP in the cloud, such as financial and payroll applications, though it doesn’t offer manufacturing or supply chain. And with the acquisition of NetSuite, Oracle is much more able to effectively address the SMB market segment.

    http://seekingalpha.com/article/4054166-workday-avoid

Other

Photo: Evan Kirby

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Supplier Report: 10/31/2015

sn_spark_JosephYoung

Oracle World happened and as expected, Hurd and Ellison made plenty of amusing remarks about their competitors.  As Ellison remarked that IBM is not a competitor, big blue went out and bought the Weather Company… for $2B.

Hewlett Packard is officially and finally splitting this weekend.  The two companies are facing unique market conditions in light of the Dell-EMC deal.

IBM

  • IBM Will Acquire The Weather Company’s Digital Business

    IBM announced this morning it’s acquiring The Weather Company, the parent company to the The Weather Channel, as well as the company’s B2B, mobile and web properties. The deal is being valued at more than $2 billion, according to a report from The Wall St. Journal. The companies are not disclosing the financial terms, however. The deal will see The Weather Company licensing weather forecast data and analytics from IBM under a long-term contract. The Weather Channel is not included in the acquisition.

    http://techcrunch.com/2015/10/28/ibm-will-acquire-the-weather-companys-digital-business/

  • Why does this keep happening to IBM?

    For the second time in a little over two years, Big Blue faces an investigation into how it records revenue. The company disclosed on Tuesday that the SEC is looking into the “accounting treatment of certain transactions in the U.S., U.K. and Ireland.”

    The stock dropped 4 percent to $137.86 after the revelation and was down 14 percent for the year at Tuesday’s close before bouncing back a bit Wednesday morning.

    http://www.cnbc.com/2015/10/28/why-does-this-keep-happening-to-ibm.html

  • IBM: The Line In The Sand

    One of the items that is hindering IBM from making a large acquisition is the fact that the company has $32 billion in long-term debt. This is the exact time IBM needs all of its resources to try to generate revenue growth, however they will be hindered by debt maturities in 2016. The following chart fromMorningstar shows that IBM has a large number of debt maturities coming in the next five years. Specifically next year, IBM has $5 billion in debt due and while they can easily pay off the debt, it is a drain on potential cash and cash flows that could be used to invest in the business or make an acquisition.

    http://seekingalpha.com/article/3609866-ibm-the-line-in-the-sand

  • IBM Cloud Opens To Apache Spark

    IBM will provide Apache Spark as a service onBluemix, IBM’s cloud platform. IBM will also be pushing Spark into BigInsights on Bluemix, as well as IBM’s Data Science Workbench and its SPSS Analytics Server and Modeler.

    http://www.informationweek.com/big-data/big-data-analytics/ibm-cloud-opens-to-apache-spark/d/d-id/1322827

  • Intel, Oracle Working Together To Take On IBM

    A few months ago, the head of engineering and products at Oracle, Thomas Kurian, and Doug Fisher from Intel’s Software and Services Group decided to set up a joint team of engineers codenamed Project Apollo near Intel’s facilities in Oregon, the report said.

    The team has been assigned the task of figuring out how massive cloud computing data centers could be set up that make use of Oracle’s hardware and Intel’s chips to take on IBM in the cloud computing hardware market. Project Apollo has successfully completed its mission, and the team members are now sharing “how to” documents to convince enterprise customers to use their technology in building data centers, the report said.

    http://www.valuewalk.com/2015/10/intel-oracle-together-take-on-ibm/

Oracle

Hewlett Packard (the split happens this weekend)

  • Meg Whitman bets that a smaller HP will be able to beat Dell

    But in the server space, Dell is waiting. With EMC, it gets the No. 1 provider of storage gear, making it a one-stop shop for corporate customers. If Dell’s strategy works, Hewlett Packard Enterprise will just continue the former HP’s fate, where sales have declined for 15 of the past 16 quarters. PC shipments, where HP is No. 2, fell 7.7 percent in the third quarter, according to Gartner. For servers, where Hewlett-Packard is the market leader, second-quarter shipments slowed to 8 percent from 13 percent in the prior period.

    http://www.kansascity.com/news/business/technology/article41966259.html

  • Why Hewlett-Packard Company’s Troubles May Not End With Breakup

    Post breakup, there is a fair chance that the resulting HP companies will acquire to compensate for their various shortcomings. While acquisitions might add some important assets (technology and talents), any kind of acquisition comes with a certain level of risk. Integration is one of the challenges that companies meet after they acquire a new asset. History shows that many of Hewlett-Packard’s past acquisitions never happened smoothly, a problem that may carry into the resulting entities.

    The other risk is that acquisitions predicated on desperation to catch up with the competition could fail to live up to expectations, be costly or unnecessarily disruptive. The two resulting HP businesses may not stay clear of these acquisition risks.

    http://investcorrectly.com/20151030/hewlett-packard-company-nysehpqs-troubles-may-not-end-breakup/

EMC

  • Dell acquisition of EMC could jostle Microsoft’s plans

    Dell, clearly, cannot risk this in the long term. It needs an operating system of its own. VMware’s Photon Stack is a great start, but it is only a start. It would not shock me at all to see Dell buy Red Hat in the next two years. It would be the final piece of the puzzle for a fully vertically integrated play.

    Microsoft doesn’t want to see that happen. And after seeing the tab for the Dell acquisition of EMC, I am sure Dell doesn’t want to spend the money either. Ample time and effort is going to be spent trying to find amicable solutions that allow both companies to coexist.

    http://searchwindowsserver.techtarget.com/opinion/Dell-acquisition-of-EMC-could-jostle-Microsofts-plans

Other

  • Workday Inc Becoming A Cause Of Concern To Oracle Corporation’s Cloud Business

    However, Workday Inc (NYSE:WDAY) built its business on the cloud from the ground upward, giving it an edge in competition with Oracle in HR and Finance applications delivered through the cloud. Because of its nature and the steps it has already made, Workday could cause more grief for Oracle and other legacy software vendors as enterprises shift from on-premise installations to the cloud.

    http://investcorrectly.com/20151028/workday-inc-nysewday-becoming-cause-concern-oracle-corporation-nyseorcls-cloud-business/

  • Red Hat is boring — and more open source companies should emulate it

    But whether such companies like it or not, the minute they base their success on an open source project, their revenue potential is hampered compared to a proprietary competitor. Sure, companies like Cloudera, MongoDB, and DataStax sell proprietary value around an open source project, but most are still somewhat constrained by their need to compete with the free project they sponsor. None of which is to suggest these companies will hurt for revenue. Rather, it’s a reminder that the best way for an open source company to grow is like Red Hat: steady, consistent, boring.

    http://www.infoworld.com/article/2998810/open-source-tools/red-hat-is-boring-and-more-open-source-companies-should-emulate-it.html

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