Amazon has disappointed or energized certain groups of people (depending on who you talk to) by retreating from their NYC expansion plans. Both sides are still pondering if this is a good thing for New York.
Regardless, the company continues to grow through acquisitions and leveraging their market position to gain access to behavioral data.
Meanwhile, IBM finds itself defending Watson (again) by claiming they did not overhype their AI’s capabilities (they did). The company is looking to build off their Red Hat acquisition to help companies address real integration issues and not “just porting applications to the cloud”.
Acquisitions
- Democrats want to take another look at the T-Mobile-Sprint merger
In the ten months since T-Mobile first announced its intention to buy up its competitor, the company has cozied up to the Trump administration. The company’s executives spent more than 50 nights at the Trump International Hotel in Washington, DC. T-Mobile CEO John Legere spent two night in the hotel and paid a rate of $2,246 per night, according to the Washington Post. That activity is likely to be viewed as an attempt to buy favor with the president and will come up during this week’s hearings.
The hearings this week won’t have a direct influence on the government’s decision on whether to allow the purchase to go forward or not. The Justice Department and the Federal Communications Commission get to approve or deny the merger based on their own investigations that will look into antitrust concerns and other potential harms. However, the hearings may turn up new information that would give regulators pause. Legere told investors last week that he believes the merger will be completed by June.
https://www.engadget.com/2019/02/13/democrats-house-hearings-t-mobile-sprint-merger/
- Amazon buys Eero: What does it mean for your privacy?
Deluged in a swarm of angry tweets and social media posts, many have taken to reading tea leaves to try to understand what the acquisition means for ordinary privacy-minded folks like you and me. Not many had much love for Amazon on the privacy front. A lot of people like Eero because it wasn’t attached to one of the big tech giants. Now it’s to be part of Amazon, some are anticipating the worst for their privacy.
Of the many concerns we’ve seen, the acquisition boils down to a key concern: “Amazon shouldn’t have access to all internet traffic.”
- Apple buys voice app startup Pullstring
Pullstring was founded in 2011 by a group of former Pixar executives, and originally was used to power interactive voice apps for toys (including Hello Barbie in 2015). It later broadened its approach with the introduction of such IoT products as Amazon Echo and Google Assistant.
https://www.axios.com/apple-voice-app-pullstring-080b45b6-bbb4-466f-b60a-b87c932e2f57.html
Artificial Intelligence
- IBM CEO Ginni Rometty: ‘We Never Overpromised’ on Watson A.I.
Pretty much the entire world believes IBM overhyped its Watson artificial intelligence technology. Rometty isn’t one of those people. “We never overpromised,” she says, allowing, though, that “the world was mesmerized by this idea” and that the whole tech industry has learned that “you cannot just put AI on top of existing workflows.” Rometty somewhat shockingly re-framed how people should think about Watson, the subject of years of IBM’s marketing efforts. “People ask, ‘What’s the size of the Watson business?’” she says. “People want to call it a business. I call it a capability.”
Cloud
- After limping through chapter one of cloud computing, IBM aims to own chapter two
Chapter one of the cloud represented about 20 percent of the workload opportunity. It was largely about moving a lot of new and customer-facing applications to the cloud. Chapter two is about the hard stuff. It’s about scaling artificial intelligence and creating hybrid clouds. It’s about bringing the cloud operating model to all those mission-critical apps and enabling customers to manage data, workloads and apps and move them between multiple clouds. This is a trillion-dollar opportunity and IBM intends to be No. 1.
To claim a leadership position in this next chapter, IBM is spending $34 billion to acquire open-source software leader Red Hat Inc. This is a huge move on the chessboard, underscoring that the IBM Cloud and a decade of trying to commercialize the AI-powered Watson system aren’t enough to win the day. Rather, it sees open source, Kubernetes, containers, microservices and developers as a lynchpin to success in the next chapter of cloud.
https://siliconangle.com/2019/02/14/limping-chapter-one-cloud-computing-ibm-aims-chapter-two/
- Oracle Shares End Higher After Warren Buffett’s Berkshire Hathaway Dumps Stake
Berkshire Hathaway’s portfolio of around 90 U.S.-listed stocks lost around $38 billion in value over the three months ending in December, the SEC filings noted, as the S&P 500 slumped nearly 15% in a global market sell-off triggered by slowing growth and a then-hawkish U.S. Federal Reserve. Berkshire Hathaway told the SEC in its November filing that it had owned 41.4 million shares in Oracle at the end of the end of the third quarter after it had exited a holding in IBM (IBM – Get Report) earlier in the year.
Oracle surprised investors with a bullish 2019 outlook late last year when it posted stronger-than-expected second quarter earnings and said growth in its cloud computing business would support sales and improve profit margins.
The company also said it sees current quarter earnings of between 86 cents and 88 cents a share, topping the 84 cent Street forecasts, and said it expects full year revenue growth of around 3% on a constant currency basis.
Software/SaaS
- Barclaycard Integrates B2B Payments Tech To SAP Ariba
The integration will roll out later this year with the addition of Precisionpay Bank Transfer within the SAP Ariba platform. Corporate buyers can pay their vendors via virtual card, with suppliers receiving payment the same way they receive a bank transfer. Barclaycard noted that its collaboration with SAP Ariba could also link business buyers to supply chain financing, giving companies up to 56 days to pay their invoices while suppliers receive payment more quickly.
https://www.pymnts.com/news/b2b-payments/2019/barclaycard-sap-ariba/
- Oracle CEO Mark Hurd throws shade at SAP’s $8 billion Qualtrics acquisition: We don’t buy companies ‘to just buy them’
“We’re not buying somebody to just buy them. We’re buying companies that fit into our portfolio,” Hurd said onstage at the Goldman Sachs Technology and Internet Conference on Wednesday, in response to a question from the on-stage interviewer about how Oracle and SAP approach acquisitions.
In November, SAP announced it would acquire online market research software startup Qualtrics for $8 billion. The news came close to the last possible second, as Qualtrics was about to go public. Hurd’s comments were almost certainly in reference to this very recent mega-deal.
Also:
Hurd also said that he disagreed with SAP asking customers to completely transition to its cloud-based S/4HANA platform by 2025. After that, SAP will stop providing support for its very popular Business Suite enterprise software.
“I think that is just a terrible damn idea,” Hurd said. “Let’s say you go to your board and say, ‘We’re going to move from this thing to this other thing, and it’s going to cost $350 million.’ My guess is, the board will say, ‘What do we get for $350 million?’ Well, we moved from this thing to the HANA thing.”
Datacenter/Hardware
- Google will have offices and data centers in 24 states by the end of 2019
The company is launching a $13 billion expansion in 2019 that will give it a total US footprint of 24 states, including “major expansions” in 14 states. The growth includes its first data center in Nevada, a new office in Georgia, and multi-facility expansions in places like Texas and Virginia. This is on top of known projects like its future New York City campus.
https://www.engadget.com/2019/02/13/google-expands-us-footprint/
Other
- Amazon is becoming too pervasive, anti-competitive
To put this in old-fashioned terms, Amazon owns the mall, rents space to retailers, controls access to customers, collects data on every sale while also operating the largest store in the mall. And if one of the smaller retailers show some success, Amazon will compete with them.
Yet that is not enough for CEO Jeff Bezos, because 90 percent of retail sales still take place in brick-and-mortar buildings. Amazon has bought grocery giant Whole Foods, launched Amazon Go convenience stores and opened Amazon kiosks in shopping malls. The company is reportedly looking at old Sears stores to add more retail and warehouse space.
- Amazon’s HQ2 New York plans didn’t need to end this way
While it’s fair on some level that Amazon felt stymied by this political climate, the company still seems petty at the end of all this. As a tech and retail titan that is nearly impossible to avoid in daily life, the company has come to expect a certain level of fealty from the people and organizations it deals with. It’s used to walking into a room and getting what it wants. In this case, dealing with activists, vocal critics and pressure from key lawmakers meant Amazon wasn’t going to have another typically easy time — the line of thinking appears to be that, as helpful as another campus would be, it wouldn’t be worth the trouble. Lots of brilliant people work at Amazon, though; is it possible that no one saw the red tape coming?
I have a hard time believing that Amazon couldn’t have handled this better. Could it have managed the conversation better? Could it have been more transparent in its dealings? Could it have tried to work more closely, more functionally with the lawmakers involved? Does this whole thing now feel like a huge waste of time? Yes, to all of the above.
https://www.engadget.com/2019/02/16/amazon-hq2-new-york-waste-of-time/
Photo by NeONBRAND on Unsplash