Apple and Microsoft are starting the push for the cloud… services. Apple is expected to derive 30% of their profits from services this year and much more in the future. For Microsoft, it isn’t enough to host, they want to be a platform for productivity, IOT, and blockchain.
And as those companies succeed, others like Verzion and Oracle are struggling with their cloud services and acquisitions. Verizon is now looking to sell off Yahoo assets like Tumblr after users have fled from the platform. Oracle is expecting weaker companies to consolidate.
Acquisitions
Artificial Intelligence
- IBM’s decision to halt sales of Watson AI: strategic move or admission of failure?
At present, IBM says it will no longer develop or market the drug discovery application but will continue to support existing users of the software. It may be that the technology is simply not yet mature enough for deployment in certain capacities such as drug discovery, diagnosis and treatment recommendations despite indications of some success by other AI companies.
However, given that AI employs machine learning, with further input of data from a variety of sources, the abilities and accuracy of the AI will most likely increase. With the pressure to commercialize a driving factor for many companies, there may not be enough time set aside for the numerous iterations and human participation necessary for developing and fine-tuning the technology.
Cloud
- Accenture sued over website redesign so bad it Hertz: Car hire biz demands $32m+ for ‘defective’ cyber-revamp
As Hertz endured the delays, it found itself immersed in a nightmare: a product and design that apparently didn’t do half of what was specified and still wasn’t finished. “By that point, Hertz no longer had any confidence that Accenture was capable of completing the project, and Hertz terminated Accenture,” the car rental company complained in a lawsuit [PDF] lodged against Accenture in New York this month.
Hertz is suing for the $32m it paid Accenture in fees to get to that aborted stage, and it wants more millions to cover the cost of fixing the mess. “Accenture never delivered a functional website or mobile app,” Hertz claimed.
Accenture told El Reg on Tuesday this week it believes Hertz’s lawsuit is “without merit.”
https://www.theregister.co.uk/2019/04/23/hertz_accenture_lawsuit/
- Verizon Looks to Unload Tumblr Blogging Site
It is unclear how much Verizon might get for Tumblr, a free service with more than 400 million blogs. Yahoo paid about $1.1 billion for the New York-based site in 2013, when it was among a number of fast-growing startups such as online scrapbook Pinterest and news aggregation and commenting site Reddit.
But Tumblr struggled to generate meaningful revenue for Yahoo and was eclipsed by other social media, such as Medium, Facebook and Instagram, which Facebook bought in 2012. Yahoo wrote down Tumblr’s value by $230 million in 2016.
https://www.wsj.com/articles/verizon-looks-to-unload-tumblr-blogging-site-11556823135
- Microsoft’s Satya Nadella uses a subtle fear tactic to win cloud business away from Amazon
Nadella was reminding Read that unlike giant cloud provider Amazon, Microsoft isn’t competing with WPP. It isn’t a retailer competing with WPP’s customer’s either. And although it does have Bing and does sell ads, it also has an ad sales partnership with WPP.
Nadella’s sales pitch is simple, and one used not just with ad agency giant WPP but with retailers, an industry Amazon has really clobbered: Do you trust a technology partner to store their data, handle their transactions, know the most intimate details of their business, if that tech partner is also a competitor?
https://www.businessinsider.com/microsoft-subtle-fear-tactic-win-cloud-business-amazon-2019-5
- Oracle CEO Mark Hurd says that consolidation is coming as ‘underfunded’ cloud software companies get bought up: ‘Many of the companies will go away’
“Hurd’s analysis is correct,” Tim Bajarin, an analyst with Creative Strategies, told Business Insider.
“Smaller SaaS companies are underfunded and will have trouble competing with the big players in this market. If they have unique technology they could become M&A targets. It is expensive to market and serve the SaaS markets and being under-capitalized will hurt their chances to compete for the same businesses big SaaS companies go after today.”
Ray Wang, president of Constellation Research, agreed, saying: “We are still in a market of consolidation.”
https://www.businessinsider.com/oracle-ceo-mark-hurd-cloud-software-consolidation-2019-5
Security/Privacy
- Zero-day attackers deliver a double dose of ransomware—no clicking required
Attackers have been actively exploiting a critical zero-day vulnerability in the widely used Oracle WebLogic server to install ransomware, with no clicking or other interaction necessary on the part of end users, researchers from Cisco Talos said on Tuesday.
The vulnerability and working exploit code first became public two weeks ago on the Chinese National Vulnerability Database, according to researchers from the security educational group SANS ISC, who warned that the vulnerability was under active attack. The vulnerability is easy to exploit and gives attackers the ability to execute code of their choice on cloud servers. Because of their power, bandwidth, and use in high-security cloud environments, these servers are considered high-value targets. The disclosure prompted Oracle to release an emergency patch on Friday.
- Large GDPR Fines Are Imminent, EU Privacy Regulators Say
Helen Dixon, Ireland’s data-protection commissioner, said at an event here that her office has received about 6,000 complaints since GDPR went into effect. Most have been minor, such as individuals having problems deleting their accounts with certain firms. But her office is now investigating 18 cases involving large data breaches, systemic privacy issues and other serious violations at technology firms, she said.
Ms. Dixon said she plans to bring her first draft decisions for enforcement actions to the European Data Protection Board this summer. Other data protection authorities can raise objections.
https://www.wsj.com/articles/large-gdpr-fines-are-imminent-eu-privacy-regulators-say-11556829079
Software/SaaS
- Microsoft launches a fully managed blockchain service
We’re not talking cryptocurrencies here, though. This is an enterprise service that is meant to help businesses build applications on top of blockchain technology. It is integrated with Azure Active Directory and offers tools for adding new members, setting permissions and monitoring network health and activity.
The first support ledger is J.P. Morgan’s Quorum. “Because it’s built on the popular Ethereum protocol, which has the world’s largest blockchain developer community, Quorum is a natural choice,” Azure CTO Mark Russinovich writes in today’s announcement. “It integrates with a rich set of open-source tools while also supporting confidential transactions—something our enterprise customers require.” To launch this integration, Microsoft partnered closely with J.P. Morgan.
https://techcrunch.com/2019/05/02/microsoft-launches-a-fully-managed-blockchain-service/
- Services really are becoming a bigger part of Apple’s business
This shift is already playing out in the company’s financials. While product sales dipped a bit year-over-year — down from $51.3 billion in the quarter that ran from January to March 2018 to $46.6 billion in the same quarter of 2019 — revenue from the services business climbed from $9.9 billion to $11.5 billion.
In this fiscal Q2 quarter of 2018, Apple’s total revenue came in at roughly $61.1 billion; in the same quarter of 2019, it dipped to $58 billion. This works out to services accounting for 16.1% of Apple’s revenue in fiscal Q2 2018, but nearly 20% in fiscal Q2 2019. Apple CFO Luca Maestri says services now account for “one-third” of the company’s gross profits.
https://techcrunch.com/2019/04/30/services-really-are-becoming-a-bigger-part-of-apples-business/
Other
- Foxconn Chairman Meets With Trump as Wisconsin Plant Plans Fall Behind
The Foxconn project is one of the biggest U.S. public-incentive deals ever offered to a foreign company, a more than $4 billion package of state and local tax breaks and infrastructure investment.
President Trump has been involved with the Wisconsin project since its inception, and said he was the one who advised Mr. Gou to build in rural southeastern Wisconsin. At last year’s groundbreaking, President Trump touted the plant as a pillar of his plan to bring advanced-manufacturing jobs to the industrial Midwest and described Chairman Gou as “one of the most successful businessmen in the world, very few people even close.”
But President Trump didn’t mention Foxconn in a Saturday night rally in Green Bay, a rare omission for a project he has described as “the eighth wonder of the world.”
- Alphabet Falls $1 Billion Short of Revenue Forecasts, Blaming Strong Dollar
The law of large numbers is simple: As a company gets bigger, it becomes difficult to find new ways to make money and maintain rapid growth. The issue has dogged other big tech companies like Apple in recent years.
Alphabet explained the revenue shortfall with a very big-company answer. It said the strong United States dollar dented revenue by $1.2 billion. Google executives rattled off a long list of currencies weakening against the dollar, including the euro, the British pound, Brazilian real and Indian rupee. The company said it expected foreign currency to be an issue again in the current quarter.
Shares of Alphabet fell more than 7 percent in early trading on (last) Tuesday.
https://www.nytimes.com/2019/04/29/technology/alphabet-quarterly-results-2019.html
- Eric Schmidt to Leave Alphabet Board
Mr. Schmidt, 64 years old, was appointed CEO in 2001, when Google was still privately traded and just three years old. Already a Silicon Valley veteran, he was brought in to provide managerial heft to the less experienced founders of the company, Larry Page and Sergey Brin. The interview process included a trip by the three men to the free-spirited Burning Man festival in Nevada.
Board member Diane Greene, who was replaced as chief executive of the cloud division in January, also will leave the board, the company announced. Cloud has been a sore spot for Google, despite a big hiring push and the attention of some of the company’s top executives.
https://www.wsj.com/articles/eric-schmidt-to-leave-alphabet-board-11556659629
Photo by Mitchell Orr on Unsplash