Supplier Report: 2/11/2017

It was an eclectic news week for IT suppliers.  Microsoft cut their cloud prices for certain services and is also starting to protect customers against patent trolls, promising to assist small companies should a nonsense lawsuit occur.

Google found themselves in federal court being asked to provide the FBI access to emails. The company hoped to use Microsoft’s successful defense in a similar trail as grounds to drop the request, but it was denied.  When Google isn’t in court, they are expanding the use of complex games to vet and teach their AI better ways to solve for problems.

Acquisitions

  • The Case For IBM Buying Nvidia, Xilinx, And Mellanox

    We know what you are thinking. This might be a good thing for IBM, but it might not be a good thing for Nvidia, Xilinx, and Mellanox, who are the key three hardware partners in the OpenPower consortium that IBM formed with the help of hyperscale datacenter operator Google back in August 2013. Fair enough. All three companies seem to be doing fine against their respective competition, and the OpenPower effort might be a tight enough coupling to get interesting and innovative systems to market. But, we might argue, this effort to build a flexible platform – for that is what the OpenPower consortium is ultimately about – could be significantly enhanced and accelerated by a tighter coupling of the core technologies created by all four of these companies. The fourth being, of course, the Power family of processors created by IBM, which would be married to Nvidia Tesla compute GPUs, Mellanox InfiniBand and Ethernet switching, and Xilinx UltraScale Virtex and Kintex FPGAs.

    https://www.nextplatform.com/2017/02/07/case-ibm-buying-nvidia-xilinx-mellanox/

Artificial Intelligence

  • DeepMind is using games to test AI aggression and cooperation

    The findings are important as humanity releases multiple AI into the world. It’s likely some will clash and try to either co-operate or sabotage one another. What happens, for instance, if an AI is managing traffic flow across the city, while another is trying to reduce carbon emissions in the state? The rules of the “game” which govern their behavior then become vital. Setting parameters, and being mindful of other agents, will be crucial if we’re to balance the global economy, public health and climate change.

    https://www.engadget.com/2017/02/09/google-deepmind-ai-cooperation-research/

  • In major AI win, Libratus beats four top poker pros

    Marking a major step forward for artificial intelligence (AI), Libratus, an AI developed by Carnegie Mellon University (CMU), has resoundingly beaten four of the best heads-up no-limit Texas hold’em poker players in the world in a marathon, 20-day competition.

    After 20 days and a collective 120,000 hands played, Libratus closed out the competition Monday leading the pros by a collective $1,766,250 in chips.

    http://www.cio.com/article/3164228/artificial-intelligence/in-major-ai-win-libratus-beats-four-top-poker-pros.html

Cloud

  • Senior Google Cloud Exec Departs After Reorg

    Schachter joined the Internet search giant in 2012 from Salesforce.com, according to his LinkedIn profile. Initially he worked on Google for Work, formerly the overall brand for Google applications and devices. It is now part of the Google Cloud group. Schachter was promoted to head Google Cloud’s sales effort two years ago.

    According to that story, there was a sales reorganization earlier this year in which Schachter got responsibility for North America sales while another executive took on Europe and the Middle East.

    http://fortune.com/2017/02/02/google-cloud-vp-leaves/

  • Microsoft cuts cloud prices again

    The Redmond., Wash., software group dropped prices by up to 61% on some of its products, though other offerings will not carry a discount.

    https://www.thestreet.com/story/13995452/1/microsoft-kicks-off-the-2017-cloud-wars-with-some-big-price-cuts.html

  • Microsoft Adds Patent Suit Protections For Cloud Customers

    Microsoft, the second-biggest cloud infrastructure services vendor behind Amazon.com Inc., will help customers fight back by offering them one of its own patents to deter or defeat such suits. The software giant will also expand a program in which Microsoft provides funds or legal resources to fend off claims, known as indemnification.

    http://talkincloud.com/cloud-computing/microsoft-adds-patent-suit-protections-cloud-customers

Datacenter

Software/SaaS

  • Open source users: It’s time for extreme vetting

    Open source won. It won because it’s used everywhere now. But now we have a supply chain problem we need to start thinking about and that is, where did you get it and how is it being taken care of, because software doesn’t age well. This is something that you have to take care of and you have to pay attention to. You can’t just pull software into your project and you’re done.

    http://www.cio.com/article/3167527/linux/open-source-users-its-time-for-extreme-vetting.html

Other

  • IBM’s Marissa Mayer moment: Staff ordered to work in one of 6 main offices – or face the axe

    According to sources, the six “strategic” offices US marketing staff must work from are in: Austin, Texas; San Francisco, California; New York City, New York; Cambridge, Massachusetts; Atlanta, Georgia; and Raleigh, North Carolina. El Reg understands that employees will not get to choose a nearby office, but will instead be assigned a location based on where their team is predominantly situated. The first wave of workers were informed of the changes on Monday. The next wave will be instructed in early March, we’re told.

    https://www.theregister.co.uk/2017/02/08/ibm_no_more_telecommuting/

  • Google told to hand over foreign emails in FBI search warrant ruling

    The ruling is notable because it goes against an appeals court judgement last year — recently upheld — pertaining to Microsoft customer data held in servers outside the US. In that instance a federal court ruled the company did not have to hand over data stored on its servers in Ireland to the US government, declining to “disregard the presumption against extraterritoriality,” as the judge put it.

    https://techcrunch.com/2017/02/04/google-told-to-hand-over-foreign-emails-in-fbi-search-warrant-ruling/?ncid=rss

  • Oracle settling with ex-worker over alleged fiddling of cloud accounts

    In a joint submission Wednesday to the U.S. District Court for the Northern District of California, lawyers for Oracle and the former employee Svetlana Blackburn asked for the vacation of a case management conference scheduled for Thursday, while submitting a notice of settlement to notify the court “that the lawsuit has been settled in principle, and to request thirty (30) days in which to file a dismissal.”

    http://www.pcworld.com/article/3168035/cloud-computing/oracle-settling-with-ex-worker-over-alleged-fiddling-of-cloud-accounts.html

Photo: Oliver Cole

The impact of H-1B modification on tech companies

Note: This blog is apolitical and I will do my best to keep this post free of spin and stick to the facts.

During my research for last week’s supplier report, it was clear that President Trump’s immigration policies were a major pain point for IT companies. It was such a reoccurring thread that I felt I needed to go deeper to better understand the situation.

On January 27th, 2017 Donald J. Trump released an executive order that modified travel rights into the United States from several countries.

The executive order imposed a 90-day travel ban on the citizens of seven predominately Muslim countries: Iraq, Syria, Iran, Sudan, Libya, Somalia and Yemen. It also suspends the U.S. Refugee Admissions Program for 120 days. Additionally, it indefinitely prohibits Syrian refugees from entering the U.S.

As of February 5th, the Department of Justice is blocking the President’s executive order:

The US Justice Department filed an appeal just after midnight Sunday, asking to pause a sweeping decision from the judge that temporarily halted enforcement of several key provisions of President Trump’s executive order.

The status of the executive order has fluctuated during last week, and it is clear that President Trump is planning to fight this most recent setback:

Trump’s modification of immigration policy has many in the technology industry concerned that the order was just the first step of more sweeping immigration reforms. It is being reported that the Trump administration is also drafting modifications to the H-1B visa program.

The US H-1B visa is a non-immigrant visa that allows US companies to employ graduate level workers in specialty occupations that require theoretical or technical expertise in specialized fields such as in IT, finance, accounting, architecture, engineering, mathematics, science, medicine, etc.

The program allows for 65,000 (+20,000 additional IT workers) into the country annually. Depending on the country, a worker can stay in the United States for 3 years with an option for an additional 3 year renewal.

Although there are annual controls on who is accepted into the via program, there doesn’t seem to be precise records on how many people in total are currently working in the U.S. under the H-1B visa program. It is estimated to be between 650,000-850,000.

White House press secretary Sean Spicer said the possible executive order on work visas “is part of a larger immigration effort” and stems from “an overall need to look at all of these measures.” C-level executives from many of the large technology firms have denounced this activity:

Microsoft CEO Satya Nadella:

“There is no place for bias or bigotry in any society, in any context. That’s where we start from,” Nadella told employees. “It is the enlightened immigration policy of this country that even made it possible for me to come here in the first place, and gave me all this opportunity.”

Google Co-Founder Sergey Brin:

“I think it’s important to not frame this debate as being ‘liberal’ versus ‘Republican’ and so forth,” Brin told the crowd. “It’s a debate about fundamental values, about thoughtful policymaking and many of the other things that I think are — apparently not universally adored — but I think the vast majority of our country and of our legislators and so forth support.”

Apple CEO Tim Cook sent an email to employees (and has not yet publicly commented):

There are employees at Apple who are directly affected by yesterday’s immigration order. Our HR, Legal and Security teams are in contact with them, and Apple will do everything we can to support them. We’re providing resources on AppleWeb for anyone with questions or concerns about immigration policies. And we have reached out to the White House to explain the negative effect on our coworkers and our company.

As I’ve said many times, diversity makes our team stronger. And if there’s one thing I know about the people at Apple, it’s the depth of our empathy and support for one another. It’s as important now as it’s ever been, and it will not weaken one bit. I know I can count on all of you to make sure everyone at Apple feels welcome, respected and valued.

Perhaps the Trump administration’s investigation and overhaul of the H-1B program is due to accusations of companies abusing the program. For example, Disney has been accused of laying off qualified domestic workers in favor of cheaper H-1B workers coming from India.

While the argument is being made that American interests are being protected by these measures, there is concern that by increasing the wage requirements for H-1B workers and making it more difficult to get these resources, US companies will just shift the job entirely to cheaper labor markets like India:

India’s technology companies, led by Tata Consultancy Services Ltd, Infosys and Wipro, have argued they are helping corporations become more competitive by handling their technology operations with specialized staff. They also contend the visa programs allow them to keep jobs in the U.S. and that if they have to pay more for staff, they will handle more of the work remotely from less expensive markets like India.

This is (clearly) a complicated issue that only gets more complex through a political filter. It seems possible that the H-1B program has been abused in the past and it is alarming that there isn’t precise documentation on how many people are working under the program currently.

The United States is a country that was forged through immigration and there are many examples of people coming here with nothing and creating companies and jobs. Turning away from that cultural identity can be damaging and have long lasting impact.

Photo: Ferdinand Stöhr

Supplier Report: 2/4/2017

IT firms are struggling to keep up with President Trump’s international policy changes. As the new President creates laws that impacts immigration, companies are concerned about staffing issues.

As company chiefs become more vocal against President Trump, will he become more at odds with Silicon Valley?

IBM has been put into an uncomfortable situation as they are trying to remain on good terms with the President while meeting their own staffing demands. The company released a message of diversity, inclusion and tolerance without mentioning the President directly, which came under fire from critics.

Acquisitions

Artificial Intelligence

  • IBM’s five-year plan to remake healthcare

    Perhaps its greatest use, however, could be allowing people to know about health conditions before any symptoms begin to show. Take Alzheimer’s disease, for example: the neurobiological changes that cause signs of the disease will have done their work before any of those signs are evident in the patient. By checking a person’s blood for biomarkers of the disease at regular intervals, they can be informed if they show early indications of the condition, and start treatment or planning accordingly.

    http://www.zdnet.com/article/ai-that-knows-youre-sick-before-you-do-ibms-five-year-plan-to-remake-healthcare/

  • Florida medical center adds IBM Watson to oncology team

    Developed by IBM and trained by experts at Memorial Sloan Kettering Cancer Center (MSK) in New York, the program draws upon over 300 medical journals, 200-plus textbooks, and almost 15 million pages of text to provide a rapid and evidence-based approach to the management of patients with cancer.

    Last December, at the San Antonio Breast Cancer Symposium in Texas, a study was presented comparing the results of Watson for Oncology with the determinations of oncologists at Manipal Hospitals in Bengaluru, India. The researchers reviewed a total of 638 breast cancer patients and found that the oncologists agreed with Watson recommendations 90 percent of the time.

    https://www.dotmed.com/news/story/35223

  • H&R Block adds IBM’s Watson to its tax team

    The company said Wednesday that its employees will work with Watson to identify credits and deductions and find other solutions for customers. It’s the first time Watson, which has been used in health care, retail and other settings, will be applied to tax preparation.

    H&R Block and IBM trained Watson in the language of tax. The system will apply that knowledge to the thousands of questions and topics discussed during the return-filing process.

    http://www.seattletimes.com/business/hr-block-adds-ibms-watson-to-its-tax-team/

Cloud

  • Microsoft Azure Makes Monster Growth, Poses Threat to AWS In The Battle For Cloud Supremacy

    But despite being the underdog and the smaller player in the more intense Microsoft Azure-AWS cloud computing battle, analysts still believe that Microsoft will have the upper hand in this kind of battle.

    Analysts also said that Microsoft might become a bigger cloud player than Amazon in the long term because, in addition to the massive Azure infrastructure services, the software giant also has an actively growing SaaS (software-as-a-services) portfolio as well as a strong enterprise grip that AWS will never be able to match.

    http://www.universityherald.com/articles/63161/20170131/microsoft-azure-makes-monster-growth-poses-threat-aws-battle-cloud.htm

  • Google Pins High Hopes on This ‘Other’ Business

    For the fourth quarter ending December 31, 2016, the non-advertising business—which includes Google Cloud Platform along with Google’s popular G Suite software as well as hardware like the Pixel phone—hit $3.4 billion in sales, up 62% from the year-ago period. That business represents a bigger piece of total Google revenue—13% compared to 10% from last year’s quarter.

    http://fortune.com/2017/01/27/google-cloud-hopes/

Datacenter

  • IBM calls healthcare industry a ‘leaky vessel in a stormy sea’

    Healthcare providers are in a tight spot. Whether it is the US healthcare system or the UK’s National Health Service (NHS), organizations are under pressure not only to lower the consumer cost of treatment but also to modernize and provide digital solutions for professionals and patients.

    Successful data breaches cost the industry a fortune, but industry players may not have the budget required to keep data safe and controlled, and to make matters worse, attackers are likely to continue striking these core services as stolen information is valuable — and ransomware infections can be very lucrative.

    http://www.zdnet.com/article/ibm-calls-healthcare-industry-a-leaky-vessel-in-a-stormy-sea/

Software/SaaS

  • Oracle cloud licensing requirements doubled for AWS, Azure users

    Oracle made subtle licensing changes on Jan. 23 that effectively doubled processor license requirements — and, in turn, list prices — for customers that use Amazon Web Services (AWS) or Microsoft Azure. The modified Oracle cloud licensing policy shouldn’t affect users with existing contracts, consultants said. But it would apply to new customers and possibly to added deployments not covered by a current contract. Some Oracle users commenting online also raised the specter of the changes taking effect if a company is audited for license compliance by the software vendor.

    http://searchoracle.techtarget.com/news/450412198/Oracle-cloud-licensing-count-doubled-for-AWS-Azure-users
    Oracle is pricing itself out of Amazon’s cloud

    I’m not sure why Oracle has doubled its AWS virtual CPU pricing, other than to steer customers to use its own IaaS platform rather than migrate to AWS. Although Oracle’s cloud is far behind AWS’s, doubling the price of using AWS may stall enterprises’ migration enough to give Oracle time to get its own cloud act together.

    http://www.infoworld.com/article/3164517/cloud-computing/oracle-is-pricing-itself-out-of-amazons-cloud.html

  • IBM and United Airlines collaborate on enterprise iOS apps

    The deal, part of IBM and Apple’s global partnership, will include both market ready and custom iOS apps for United employees. The airline has so far deployed more than 50,000 Apple devices to its workforce. The apps will be integrated with United’s core enterprise processes.

    http://www.zdnet.com/article/ibm-and-united-airlines-collaborate-on-enterprise-ios-apps/
    Having flown United this week, they can use the help.

Other

  • Amazon beats profit expectations—revenue, not so much

    On Thursday, the online retailer reported net sales of $43.7 billion for the fourth quarter of 2016, up 22% over the same quarter a year ago. Those numbers fell short of analyst expectations, sending Amazon’s stock down more than 4% in after-hours trading. When asked on the company’s earnings call about the revenue miss, Amazon CFO Brian Olsavsky said revenue would have been up 24% if not for an $800 million hit due to foreign exchange rates.

    https://qz.com/901782/amazon-misses-revenue-expectations/

  • The tech sector’s reaction to Trump’s immigration changes:
    Top Microsoft execs weigh in on Trump’s immigration ban

    Now two of the company’s top executives have weighed in on the matter. CEO Satya Nadella took to LinkedIn to share a memo sent by President and Chief Legal Officer Brad Smith to the entire Microsoft staff.

    “As an immigrant and as a CEO,” Nadella explained in his post, “I’ve both experienced and seen the positive impact that immigration has on our company, for the country, and for the world. We will continue to advocate on this important topic.”

    https://techcrunch.com/2017/01/28/microsoft-immigration-ban/?ncid=rss

    Amazon CEO Jeff Bezos says Trump’s immigration order “is one we do not support”

    Amazon CEO Jeff Bezos has come out strongly against the executive order issued by Donald Trump regarding immigration and blocking certain refugees from entering the U.S. Amazon had previously expressed support for employees affected by the order in an email from HR VP Beth Galetti, but the new message from Bezos expresses opposition to the executive order in general, and also details steps Amazon has taken to fight the Trump administration measure.

    https://techcrunch.com/2017/01/30/amazon-ceo-jeff-bezos-says-trumps-immigration-order-is-one-we-do-not-support/?ncid=rss

    IBM Strongly Criticized For Weak Response To Trump´s Muslim Ban

    Just two days after the major tech firms spoke out against the Muslim ban, IBM said that the company long believed in diversity, inclusion and tolerance, and that the path for prosperity, innovation and civil society is the path of engagement and openness to the world. In fact, IBM´s statement over the Muslim ban didn’t make any direct mention of the issue or president Donald Trump.

    Of course this is a quite different stance as the one taken by Apple, which clearly show its position through its CEO Tim Cook´s words, in which he explicitly said that this company would remain open to every person in the world, no matter where they come from, since the Cupertino giant would exist without immigration.

    http://www.itechpost.com/articles/79587/20170201/ibm-strongly-criticized-weak-response-trump%C2%B4s-muslim-ban.htm

  • Microsoft moving Michigan offices to Detroit

    The One Campus Martius building is home to Quicken Loans. Microsoft will occupy 40,000-square-feet inside the building, executives said.

    “Microsoft, like many tech companies in Detroit and around the country, recognizes that being located downtown is great for business,” Quicken Loans founder Dan Gilbert said. “Today’s tech talent wants to work and live in urban cores.

    http://www.mlive.com/news/detroit/index.ssf/2017/02/microsoft_moving_downtown.html
    Related: My own analysis of Detroit’s fall from grace.

Photo: Christopher Burns

Supplier Report: 1/21/2017

2017 is finally in full swing… I uncovered 7 acquisitions this week by major IT suppliers. It seems like a great time to be in the AI game, everybody wants to buy a tiny cognitive firm…

As AI profit grows, IBM is experiencing decline in their traditional sweet spots like storage. Blue’s cloud profits are also increasing, but Amazon is growing exponentially faster than competitors like Google and Microsoft.

IBM and Microsoft both got victories by having certain platforms reach new levels of government certification and clearance. Take the wins where you can get them!

Acquisitions

  • HP Enterprise just bought a $1 billion startup for $650 million

    At the time of SimpliVity’s last fundraising, in March 2015, the company had declared that it was valued at “more than $1 billion.” All in all, SimpliVity had raised $276 million from investors like Kleiner Perkins, Accel, and Waypoint Capital.

    By buying SimpliVity, HP Enterprise takes the startup’s capabilities and adds it to their own — crucial as the company moves to compete with the combined Dell EMC juggernaut, following the close of their mega-merger. Dell EMC, for its part, has been investing heavily in the market, and resells Nutanix hardware to its customers.

    http://www.businessinsider.com/hp-enterprise-buys-simplivity-2017-1
    Related:
    Nutanix Evolving Beyond Dell Relationship, Says Pacific Crest

    Kurtz spoke with CFO Duston Williams and also chief marking officer Howard Ting, along with a group of investors, and came away with the impression that the company is taking steps that could offset some of its reliance on privately held Dell, which sells Nutanix equipment and has made up 10% of sales.

    http://blogs.barrons.com/techtraderdaily/2017/01/17/nutanix-evolving-beyond-dell-relationship-says-pacific-crest/

  • Microsoft acquires Simplygon to boost 3D innovation

    This is part of Microsoft’s “3D for everyone” strategy that will be the focus in the upcoming Windows 10 Creators Update. According to Tsunoda, Simplygon, a company with reputable expertise in 3D, could help Microsoft simplify the process of capturing creating, and sharing 3D information. Microsoft’s new online creator community, Remix3D.com, and the new Paint 3D application codenamed “Beihai” will be complemented by Simplygon technology.

    Among the most important new features implemented into the Windows 10 Creators Update is a wide range of 3D capabilities that cater to creative types, according to Digital Trends. In the next version of Windows 10, in fact, 3D will take a central role, with the ability to scan objects and import them into the new Paint 3D app as 3D objects. It will also be possible to share these objects to the new Remix 3D community sharing site and interact with them using Windows Holographic and HoloLens.

    http://www.itechpost.com/articles/75272/20170118/microsoft-buys-simplygon-boost-3d-strategy.htm

  • Salesforce’s Quip acquires startup Unity&Variety

    Quip, the productivity platform that Salesforce acquired last year, announced its Friday that the firm Unity&Variety will be joining its team.

    The small Unity&Variety design team — which includes Joey Flynn, Drew Hamlin and Andy Chung — will help Quip “build the next generation of productivity tools,” Quip announced via Twitter. They’ll work on adding creative and visual elements to Quip, according to Salesforce. Has produced at least one public app, the game Pinchworm.

    http://www.zdnet.com/article/salesforces-quip-acquires-startup-unity-variety/

  • Why Salesforce Acquired Twin Prime

    Salesforce (CRM) continued its buyout spree in December 2016 with its acquisition of Twin Prime, a startup focused on ML (machine learning) that facilitates enhanced performance of mobile apps. The financial details of the deal were not disclosed.

    http://marketrealist.com/2017/01/salesforce-acquired-twin-prime/

  • Microsoft just bought an AI startup that can outperform Facebook and Google (Thanks JD!)

    The Verge covered Maluuba in the summer of 2016, when the startup shared the results of an AI system that could read and comprehend text with near human capability, outperforming similar systems shown off by Google and Facebook. Along with acquiring the company, Microsoft has also established closer ties with Yoshua Bengio, a pioneer in the field of deep learning who served as an advisor to Maluuba, and will now become and advisor to Microsoft’s AI division.

    http://www.theverge.com/2017/1/13/14266398/microsoft-acquires-maluuba-ai-deep-learning-yoshua-bengio

  • Google acquires Fabric developer platform and team from Twitter

    Google is taking over Twitter’s mobile app developer platform Fabric, as well as its Crashlytics crash reporting system, Answers mobile app analytics, Digits SMS login system and FastLane development automation system. Twitter launched Fabric as a modular SDK in 2014 to allow developers to pick and choose different tools to improve their apps, and it now serves apps reaching 2.5 billion users built by 580,000 developers.

    https://techcrunch.com/2017/01/18/google-twitter-fabric/?ncid=rss
    Twitter is definitely trying to slim down to look more attractive for acquisition.

  • Oracle Snaps Up Apiary, a Little API Company with Big Customers

    Oracle says it is buying Apiary, a company that specializes in managing and monitoring application programming interfaces, or APIs, which offer standard ways to connect software applications. Both software giants and large Fortune 500 companies are scrambling to add expertise in building, monitoring, and documenting these crucial pieces of technology.

    http://fortune.com/2017/01/19/oracle-buys-apiary/

Artificial Intelligence

Cloud

  • Oracle and Google Refine Their Cloud Pitches to Take On Amazon

    Companies with consumer DNA are not used to providing in-person or telephone support simply because the economics won’t support that expense. That’s why Amazon had to re-boot to approach these sorts of businesses by, for example, cultivating relationships with big systems integrators like Cap Gemini and Accenture that have worked with big businesses for decades.

    Now Google must do the same. When it comes to big customers, Driscoll said: “Sometimes you need to take a client to dinner and talk to them—especially when they’re spending a few million dollars a year with you.”

    http://fortune.com/2017/01/17/oracle-microsoft-amazon-google-cloud-pitches/

  • Microsoft cloud gets Pentagon’s top security rating

    The Pentagon has given the highest security rating for unclassified data to Microsoft’s federal cloud offerings, Azure Government and a Defense Department-specific iteration of Office 365. The Microsoft services were granted Level 5 provisional authority to operate certification.

    According to Microsoft, the rating makes it the first and only cloud provider that can offer a complete DOD cloud solution that is approved at that security level for controlled unclassified information (CUI).

    https://fcw.com/articles/2017/01/13/dod-azure-secure-cloud.aspx

  • IBM Analytics: A Unique Positioning within the Cloud Computing Industry

    IBM’s strength lies in its relationships with the largest companies in the world, most of whom are already its clients. IBM also knows that the bulk of these companies will prefer the hybrid cloud model so they retain a greater measure of control over their data; in addition, there are those who will not move out of their private clouds.

    In order to leverage that strength, IBM Analytics has decided to take the deployment-agnostic route for its analytics business. That way, they don’t rub their existing clients the wrong way, but are also there to support those clients who are seriously looking at public cloud as an option.

    http://1reddrop.com/2017/01/14/ibm-analytics-unique-positioning-within-cloud-computing-industry/

  • Why IaaS Growth is Critical to Cloud Computing

    The first wave of cloud growth came from basic software applications moving to the cloud. The second, and larger wave will come from things like AI-based applications, the globally connected Internet of Things, cloud gaming, virtual reality and other forward technologies.

    And to support that kind of environment, IaaS must necessarily continue to grow at the current pace, or faster. The more we move into cloud the more cloud we need – to move into! SaaS proliferation supported by IaaS expansion is the engine for cloud growth – this year and for the next several years.

    http://1reddrop.com/2017/01/16/infrastructure-service-iaas-growth-critical-cloud-computing/

  • IBM Re-Ups with U.S. Army for $62M Cloud Deal

    According to the Army, the project required Defense Information Systems Agency (DISA) Impact Level 5 (IL-5) Provisional Authorization to manage controlled, unclassified information. IBM is the only company to be authorized by DISA at IL-5 to run Infrastructure-as-a-Service solutions on government premises. IBM announced the accreditation in February which included a condition limiting the initial number of tenants in the cloud; according to today’s announcement, that condition was removed in September.

    http://www.enterprisetech.com/2017/01/18/ibm-re-ups-u-s-army-62m-cloud-deal/

Datacenter

  • 50TB hand made storage array (10 gb/s write speeds )
  • IBM is letting storage hardware revenues slip gently off into the night

    IBM’s results announcement material said that storage HW revenues were down 10 per cent on the year. Our calculation is that they are thus $718.2m, compared to $768m a year ago. In the fourth 2010 quarter Big Blue’s storage hardware revenues were $1.2bn; six years later they are $718m, a 40.2 per cent drop.

    http://www.theregister.co.uk/2017/01/20/ibm_storage_hw_revenues_same_old_same_old/

Software/SaaS

  • Oracle’s Strategy to Hit $10 Billion in SaaS Revenues

    For a lot of enterprises, a single-vendor solution for SaaS products is preferable, and that’s how Oracle wants to position itself. Microsoft is taking baby steps towards that same goal as well as it uses its strength in one SaaS area (Office 365) to strengthen another (Dynamics 365.) Both companies know that the head-on approach to taking on a segment leader like Salesforce is not the best solution.

    http://www.gurufocus.com/news/472820/oracles-strategy-to-hit-10-billion-in-saas-revenues

  • Proposed CEO of the Enlarged Micro Focus Group

    The Board is now pleased to announce that Chris Hsu, currently Chief Operating Officer of HPE and Executive Vice President of HPE Software, will become CEO of the Enlarged Group following completion of the transaction. This appoinment will further strengthen the Board and Executive management of the Enlarged Group. As part of its succession plan the Board was fortunate to have multiple internal candidates that were well qualified for the role.

    http://military-technologies.net/2017/01/17/proposed-ceo-of-the-enlarged-micro-focus-group/

Other

  • Oracle latest tech firm sued by Department of Labor

    The legal complaint asks the court to order the cancellation of all of Oracle’s federal contracts unless it prohibits discriminatory hiring practices and makes up for lost compensation and employment benefits to those affected.

    “The complaint is politically motivated, based on false allegations, and wholly without merit,” Deborah Hellinger, a spokeswoman for Oracle, said in a statement provided to CNNMoney. “Oracle values diversity and inclusion, and is a responsible equal opportunity and affirmative action employer.”

    http://money.cnn.com/2017/01/18/technology/oracle-lawsuit-labor-department/

  • Adobe and Salesforce among best US workplaces in the technology sector

    The rankings are based on employee feedback about how frequently they experience behaviors that create a great workplace, taking into consideration factors such as the quality of the employee benefits programme, support for a work-life balance, transparency of communication, degree of collaboration, and the opportunity for professional development. The rankings also take into account whether these experiences are consistent regardless of gender, race, ethnicity and job role.

    https://www.employeebenefits.co.uk/issues/january-online-2017/edmunds-salesforce-ultimate-software-among-best-us-workplaces-technology-sector/

  • Salesforce Is Opening an Innovation Hub Near Amazon and Microsoft

    Salesforce announced plans for this expansion in October 2015, and still plans to double its local workforce in the new neighborhood to nearly 500 people. The new Bellevue Salesforce Engineering and Innovation Hub will even include “dedicated mindfulness areas.”

    http://fortune.com/2017/01/18/salesforce-innovation-hub-seattle/

  • A new CEO for DocuSign

    Effective this week, Daniel Springer is taking the reigns and former CEO Keith Krach is moving to a chairman role.

    With a reported valuation of more than $3 billion, 14-year-old DocuSign is said to be scaling, with speculation that it’s nearing its long-awaited IPO. Though he couldn’t comment on timing, Springer happens to have experience with IPOs — he brought Responsys public in 2011 and later helped it get acquired by Oracle.

    https://techcrunch.com/2017/01/18/a-new-ceo-for-docusign/?ncid=rss

  • IBM: Revenues Will Grow In 2017

    To revamp growth, the company has invested over $30 billion in five key growth areas: Analytics, Cloud, Mobile, Security and Social. These areas offer incredible potential that is beginning to be captured. From today’s earnings’ release, we can see that year over year, Analytics grew 9% to $19.5 billion, Cloud 35% to $13.7 billion, Mobile 35% to $4.1 billion and Security 14% to $2 billion (Social, though, fell by 10% to $1 billion). Revenues generated by these areas have grown to $32.8 billion and now represent 41% of the company’s total revenues. Such growth is impressive considering that, in 2010, strategic imperatives represented only 13% of total revenues. Growth is slowing down because the segments are becoming larger, but these growth rates are still more appropriate for a tech start-up rather than for a giant like IBM.

    http://seekingalpha.com/article/4038136-ibm-revenues-will-grow-2017

Photo: Josh Willink