Tag: IBM

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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

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Supplier Report: 1/7/2017

Japan’s love of technology might be backfiring for their salarymen as 36 white collar workers have been replaced by IBM’s Watson technology (long term they will need it due to declining a declining population). Foxconn workers in China are also being phased out in favor of automation and robotics (because young Chinese workers don’t want to be treated like robots).

The US Healthcare industry is expected to grow their use of cognitive computing by 42% (compound annual growth rate) over the next 4 years. During those 4 years your car is also expected to get much smarter as Amazon and Microsoft are putting their AI technologies in your dashboard.

Acquisitions

  • Google buys Sweden’s Limes Audio to boost Hangouts voice quality

    “As more and more businesses adopt our video conferencing solutions, powered by Chromebox for Meetings and Google Hangouts, it’s critical that we provide a great audio experience. With G Suite customers now relying on video communications for their day-to-day meetings, it’s more important than ever to ensure low-cost, high-quality audio.”

    https://techcrunch.com/2017/01/05/google-acquires-limes-audio/?ncid=rss

  • Why LinkedIn Under Microsoft Is Doomed (this article is a little misguided, but a fun read)

    There are two things Microsoft will most likely do to LinkedIn. The first would be to leave it alone, which—from what I can tell—will worsen the product. But Redmond could also come in and ruin the product with a few years of meddling, just as it did with everything from Nokia to WebTV.

    So the likelihood of anything good coming from the LinkedIn buyout is improbable, at best. This, despite the fact that Satya Nadella is at the helm. The problem is the corporate culture, not the bosses.

    http://www.pcmag.com/commentary/350754/why-linkedin-under-microsoft-is-doomed

Artificial Intelligence

Cloud

  • AT&T Goes All In on IoT at CES

    In a series of announcement at the show, AT&T revealed a new partnership with Emerson for methane emissions monitoring, announced the addition of Portland, Ore., as a new spotlight city in its Smart Cities program, and launched a new IoT Professional Services offering that will lend the carrier’s expertise to help businesses design, test, deploy, and manage IoT solutions. Alongside the latter, AT&T also introduced a new light version of its IoT Starter Kit, a dedicated starter kit for the Amazon Web Services (AWS) IoT service, and a more streamlined IoT device certification process.

    https://www.wirelessweek.com/news/2017/01/t-goes-all-iot-ces

  • Microsoft unveils connected car strategy at CES 2017: ‘Cloud will do the heavy lifting’

    The platform allows automakers to leverage Microsoft’s virtual assistants, business applications, and office services, the post said. It will also help integrate productivity tools such as Cortana, Office 365, and Skype for Business into vehicles.

    http://www.techrepublic.com/article/microsoft-unveils-connected-car-strategy-at-ces-2017-cloud-will-do-the-heavy-lifting/

Datacenter

  • Dell EMC serves up ‘white glove’ treatment to exclusive top-tier partner level

    “Partners with Titanium Black status have placed a big bet on Dell EMC,” Byrne said. “They’re going above and beyond. They’re investing heavily in us and we are returning the investment in them so they can continue to achieve the extraordinary.

    “Titanium Black provides a rare and distinctive opportunity far and above what partners have experienced anywhere in the industry. Through the Dell EMC Partner Program, Dell EMC and our partners will attack the market, with our Titanium Black partners leading the way. We will deliver incredible transformation for our customers. We’ll be the channel to watch.”

    http://www.channelnomics.com/channelnomics-us/news/3001801/dell-emc-serves-up-white-glove-treatment-to-exclusive-top-tier-partner-level

  • Better Buy: Hewlett-Packard Enterprise Co vs. Cisco Systems, Inc

    Even after its banner 2016, HP Enterprise stock is trading at a mere 11 times future earnings, making it one of the best values in its sector. Cisco is tradingat just 12 times forward earnings, and with its nearly 3.5% dividend yield and future prospects, it’s the better buy for growth and income investors.

    That said, when the smoke clears, HP Enterprise will be ideally positioned to grow by leaps and bounds as 2017 progresses — and beyond. For investors in search of pure growth potential, HP Enterprise gets the nod.

    http://www.foxbusiness.com/markets/2017/01/04/better-buy-hewlett-packard-enterprise-co-vs-cisco-systems-inc.html
    But where is HPE’s growth coming from? Storage? That can’t last.

Software/SaaS

  • Oracle is starting to fine customers who thought they were using free Java software

    At issue, reports Clarke, is a hugely popular version of Java called Java Standard Edition (or Java SE), that anyone can download from the Oracle website.

    One unnamed retailer that underwent an audit on Java was issued a $100,000 bill, negotiated down to $30,000, The Register reports. And this could be only the beginning. Sources told Clarke that Oracle has hired 20 Java specialists for its License Management Services (LMS) department, the ones who do the audits.

    http://www.businessinsider.com/oracle-starts-to-audit-java-customers-2016-12
    But Oracle is publicly stating that they ARE NOT increasing audits…
    Oracle denies it’s ramping up a program that fines customers for using software they thought was free

    Oracle’s commitment to Java and its community remains stronger than ever, as shared recently at JavaOne. Oracle is not ramping Java SE compliance activity or hiring of compliance staff. The licensing model and policies for Java SE have remained unchanged since before the acquisition of Sun Microsystems. It is incorrect to imply that it’s easy for users to accidentally use Java SE Advanced features.

    http://www.businessinsider.com/oracle-says-it-is-not-ramping-up-a-audits-of-java-2016-12

  • It’s Official: Microsoft Eliminates Yammer Enterprise Plan

    Orton described that decision as a natural product evolution. Earlier this year, Microsoft turned on Yammer by default for all eligible Office 365 customers. Since then, the vast majority of Yammer customers use it as part of an Office 365 subscription. The stand-alone version was retired Jan. 1, although those who are already using it can continue to do so at least through the end of this year (and, in exceptional cases, as long as 2019).

    http://www.cmswire.com/digital-workplace/its-official-microsoft-eliminates-yammer-enterprise-plan/

Other

  • 11 things we think will happen in business technology in 2017

    In 2016, Microsoft and Google — widely seen as the second- and third-place contenders in the cloud wars with Amazon, respectively — made big hires and masterminded partnerships and acquisitions to bolster out their sales pitch to enterprises.

    Amazon may be the undisputed leader in the space, but Microsoft and Google aren’t taking it lying down. Watch this space: The cloud computing market is still growing, and so vicious competition will be the order of the day.

    http://www.sfgate.com/technology/businessinsider/article/11-things-we-think-will-happen-in-business-10830675.php

  • Department of Labor sues Google over wage data

    The agency is seeking what it calls “routine” information about wages and the company’s equal opportunity program. The agency filed a lawsuit with its Office of Administrative Law Judges to gain access to the information, it announced Wednesday.

    Google, as a federal contractor, is required to provide the data as part of a compliance check by the agency’s Office of Federal Contract Compliance Programs (OFCCP), according to the Department of Labor. The inquiry is focused on Google’s compliance with equal employment laws, the agency said.

    http://www.cio.com/article/3154772/government/department-of-labor-sues-google-over-wage-data.html

Photo: Megapixelstock

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Supplier Report: 12/31/2016

Alas… the last supplier report of the year.

We had an insane year of M&A and corporate entity disintegration (I am looking at you HP).  AI is getting popular not only in enterprise but also in your home thanks to Amazon and Google. Cloud continues to expand in function and use and AWS is the uncontested champ in 2016.

Year-end news cycles dictate a deluge of retrospective and predictive slop. Who am I to reject this time-honored tradition? Prepare yourself for a summary of summaries!

Acquisitions

Artificial Intelligence

  • 2016: The Year That Deep Learning Took Over the Internet

    As they push this technology into their own products as services, the giants of the internet are also pushing it into the hands of others. At the end of 2015, Google open sourced TensorFlow, and over the past year, this once-proprietary software spread well beyond the company’s walls, all the way to people like Amanda Hodgson. At the same time, Google, Microsoft, and Amazon began offering their deep learning tech via cloud computing services that any coder or company can use to build their own apps. Artificial intelligence-as-a-service may wind up as the biggest business for all three of these online giants.

    https://www.wired.com/2016/12/2016-year-deep-learning-took-internet/

  • AI was everywhere in 2016

    The technology that has long been aimed at replicating human intelligence now seems to be paying attention to human patterns and behaviors. Recent advances in deep learning have enabled that kind of insight, but it’s not limited to beating humans at games. In 2016, AI broke out of the confines of research labs to transform the way we live, communicate and even conserve the planet. Chatbots popped up in group texts. Personal assistants invaded our homes. Cognitive systems are detecting cancer. Bots are writing movie scripts. And car makers are gearing up to unleash a bevy of autonomous vehicles onto public roads.

    https://www.engadget.com/2016/12/25/ai-was-everywhere-in-2016/

  • Apple Publishes Its First Artificial Intelligence Paper (thanks JD!)

    To improve training with synthetic image data, the paper suggests what the Apple researchers call Simulated+Unsupervised learning, where the realism of a simulated image is boosted. The Apple researchers use a modified version of a new machine learning technique called Generative Adversarial Networks, which pits two neural networks against each other and has been used to generate photorealistic images.

    http://www.forbes.com/sites/aarontilley/2016/12/26/apple-publishes-its-first-artificial-intelligence-paper/#2bfa800c4cfe

  • IBM Working On Robot To Help Elderly

    The MERA uses IBM’s Watson AI to provide assistance to the elderly and monitor vital signs and environmental changes in a non-invasive manner.

    IBM Research also plans to work with Sole Cooperativa, a healthcare provider in Italy, to install sensors in senior housing communities to monitor day-to-day activities of residents.

    http://www.nasdaq.com/article/ibm-working-on-robot-to-help-elderly-20161228-00307
    If only IBM can create a robot to help an elderly bank robber make one last score…

Cloud

  • Cleveland Clinic, IBM bolster technology partnership

    In addition, Smith points to IBM’s 2015 acquisition of Explorys, a population health analytics vendor, which was developed by Cleveland Clinic physicians and IT experts before becoming a spin-off company in 2009—as an example of the technological cross-pollination between the two organizations.

    “It’s been a mutually beneficial relationship. We’re creating value for each other,” concludes Smith. “That’s the kind of partnership it has been, and it will continue. The sky’s the limit.”

    http://www.healthdatamanagement.com/news/cleveland-clinic-ibm-bolster-technology-partnership

Datacenter

  • Pure Storage: The Best House In The Worst Street?

    The storage market is too competitive to support new entrants unless they can truly disrupt the competition and industry. For the reasons explained above, we believe PSTG is doing just this and is hurting NMBL, EMC and NTAP. NMBL is growing, but is facing intense competition as described earlier and we don’t believe it will become profitable and independent. NMBL will struggle.

    We believe PSTG is strengthening its competitive position and is consistently rolling out new products such as M10 and FlashBlade to provide a consistent increase in its TAM. This continuous strengthening of its competitive position and innovation gives PSTG a real chance to succeed. Success means independent and profitable.

    http://seekingalpha.com/article/4032940-pure-storage-best-house-worst-street

Software/SaaS

Other

  • Mass. lost public companies and saw few IPOs in 2016

    And this year’s IPO class raised just under $19 billion, the smallest amount since 2003, when 68 companies brought in a combined $15.2 billion, Renaissance reported.

    The effect was felt strongly in Massachusetts, where a dozen companies held IPOs, just two of them from the state’s important tech sector. It was the lowest tally for Massachusetts since 2012, when nine companies went public, Renaissance said.

    https://www.bostonglobe.com/business/2016/12/26/mass-lost-companies-saw-few-ipos/S1v4ii4lronznWHgWPZ4rO/story.html

  • The Highest Paid Tech CEOs Of 2016

    Larry Ellison often topped the charts of the highest paid tech CEOs. Now his successors – who made $53 million last year – share the distinction of the highest paid tech CEO. Hurd is the former Chairman, Chief Executive Officer, and President of Hewlett-Packard. As Oracle’s co-CEO, he received a 41% raise in 2015, driving the value of his pay package to $53.2 million. Nearly all of Hurd’s compensation came in the form of stock and option awards valued at $52.3 million.

    Catz is an Israeli-born American, who joined Oracle Corporation in 1999. She is credited for having driven Oracle’s efforts to acquire software rival PeopleSoft in a $10.3 billion takeover in 2005. Like her co-CEO, Catz received a $53.2 million pay package – up 41% from $37.7 million in the previous year – that consists nearly entirely of stock and option awards (with the exception of a $950,000 salary and miscellaneous perks.)

    http://www.cxotoday.com/story/the-highest-paid-tech-ceos-of-2016/

  • Will Amazon or Microsoft be the first trillion-dollar technology company?

    A writer for Equities.com – a financial website that accepts submitted articles from users – on Monday predicted Microsoft’s recent LinkedIn acquisition will propel the company to become the first to reach a $1 trillion market capitalization. Michael Markowski wrote in a widely reported post on the website that Microsoft will reach the milestone largely because of the applications for LinkedIn in the online equity crowdfunding space.

    http://www.bizjournals.com/seattle/news/2016/12/27/amazon-microsoft-first-trillion-dollar-tech.html

  • Why 2017 Might Be a Difficult Year for Microsoft

    First and foremost, Microsoft, under Satya Nadella—who stepped in as chief executive, replacing Ballmer about three years ago—must prove it can do big acquisitions well. Microsoft’s record there is checkered following misfires with Nokia and aQuantive—both purchases resulting in huge write-offs. That means all eyes will be on how the software giant does with its just completed $26 billion purchase of LinkedIn.

    http://fortune.com/2016/12/28/microsoft-2017/

Photo: Chris Lawton

Posted on

Supplier Report: 12/3/2016

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Amazon is all over the news this week as they are introducing more AI/machine learning tools, more industry specific platforms, and more flexible GPU pricing.

Last week there were rumors that IBM was having issues with their cloud hosting financials, but they bounced back this week by securing American Airlines as a Bluemix customer and also bringing more focus on their blockchain solutions.

HPE is… just confusing me with every public action and comment they make.

Acquisitions

  • SUSE Acquires HPE OpenStack Cloud Technology and Talent

    Linux vendor SUSE is acquiring OpenStack cloud and Cloud Foundry Platform-as-a-Service (PaaS) technology and staff from Hewlett Packard Enterprise (HPE) in a deal announced on November 30. Financial terms of the acquisition are not being publicly disclosed and the deal is set to close in the first quarter of 2017.

    http://www.eweek.com/cloud/suse-acquires-hpe-openstack-cloud-technology-and-talent.html

  • IBM closes acquisition of financial consulting firm Promontory (old news)

    The firm’s statement continues, “The acquisition complements IBM’s Industry Platforms business, formed to develop open vertical platforms – the first comprehensive ‘as a service’ offerings designed from the ground up for individual industries. These platforms will integrate IBM Cloud, Watson and capabilities from across digital ecosystems of specialized providers, and serve multiple clients in an industry – delivering dramatically reduced costs for outcomes spanning speed, quality, audit-ability, security and transparency.”

    http://www.consultancy.uk/news/12849/ibm-closes-acquisition-of-financial-consulting-firm-promontory

  • Twitter buys startup Yes, Inc. and scores a new VP of product in the process

    The new VP of Product, Keith Coleman, steps into the role as part of Twitter’s purchase of seven-person mobile app startup Yes, Inc., where he served as CEO. Prior to that gig, the exec worked as a product manager for another little startup called Google.

    https://techcrunch.com/2016/12/01/twitter-vp/?ncid=rss

  • Fitbit is buying troubled smartwatch maker Pebble for around $40 million

    A source close to the company told TechCrunch that watch maker Citizen was interested in purchasing Pebble for $740 million in 2015. This deal failed and before the launch of the Pebble 2 Intel made an offer for $70 million. The CEO, Eric Migicovsky refused both offers. Our source said that Fitbit is now paying between $34 and $40 million for the company and is “barely covering their debts.”

    https://techcrunch.com/2016/11/30/fitbit-pebble/?ncid=rss
    I am putting this news item on the report as now there is one less IoT/wearable company that could be making health related devices
    Related News:
    Smartwatches wear out their welcome with Motorola

    Android Wear has had a rough year. What started with a promising announcement of Android Wear 2.0 at Google I/O has ended with a delayed launch, an utter lack of new models and now, a disillusioned manufacturer. In an interview with the Verge, Shakil Barkat, Motorola’s head of global product development, said in no uncertain terms that the company has soured on smartwatches and doesn’t “see enough pull in the market” to release a new model anytime soon.

    http://www.greenbot.com/article/3146360/android/smartwatches-wear-out-their-welcome-with-motorola.html

  • Can CSC spin-merger help HPE strike the infrastructure-services balance?

    “With ES moving out, it gives us the opportunity to partner far more with the likes of [professional services company] Accenture,” he said.

    Also:
    HPE VP Alistair Winner says this:

    When asked if HPE is still primarily a product and hardware company, Alastair answered resolutely, “No.”

    He said where once customers just wanted to buy gear from them and move on, “now customers are saying, ‘Actually, I don’t want to buy gear anymore. Help me consume it, whether that’s on premise or on the cloud.’”

    This is a total copout BS statement and Alistair needs to be called out on that.

    http://siliconangle.com/blog/2016/11/29/can-csc-spin-merger-help-hpe-strike-infrastructure-services-balance-hpediscover/

Artificial Intelligence

  • AWS comes out swinging with A.I. services

    The three services being rolled out are Amazon Rekognition for image recognition; Amazon Polly for text-to-speech services; and Amazon Lex, the technology inside its smart device Alexa, offering speech recognition services.

    http://www.computerworld.com/article/3146089/artificial-intelligence/aws-comes-out-swinging-with-ai-services.html

  • Should Microsoft be your AI and machine learning platform?

    The cloud-based machine-learning marketplace is increasingly crowded, with competing services from the likes of Google, IBM and Hewlett Packard Enterprise. Mike Gualtieri, VP at analyst house Forrester, said that while Microsoft offered simpler tools for firms building their own machine-learning models, the quality of the firm’s on-demand, pre-trained speech, vision and language recognition services would likely be less effective than Google’s because of the search giant’s access to huge amounts of training data.

    http://www.zdnet.com/article/should-microsoft-be-your-ai-and-machine-learning-platform/

  • Pfizer to use IBM Watson to devise immunotherapies for cancer

    “With the incredible volume of data and literature available in this complex field, we believe that tapping into advanced technologies can help our scientific experts more rapidly identify novel combinations of immune-modulating agents,” said Mikael Dolsten, Pfizer’s president of worldwide research and development. “We are hopeful that by leveraging Watson’s cognitive capabilities in our drug discovery efforts, we will be able to bring promising new immuno-oncology therapeutics to patients more quickly.”

    http://www.modernhealthcare.com/article/20161201/NEWS/161209996

Cloud

  • How Amazon Web Services is luring banks to the cloud

    Jassy said the trend started at last year’s re:Invent, where Capital One Financial Chief Information Officer Rob Alexander talked publicly about recreating the consumer banking experience in the cloud. On Tuesday, Amazon said that over the next five years, Capital One will migrate “many core business and customer applications to AWS.”

    Intuit, whose tax and payroll software exposes it to strict regulations, has moved completely to Amazon’s cloud. And the Financial Industry Regulatory Authority, or FINRA, is headed in that direction.

    http://www.cnbc.com/2016/11/30/how-amazon-web-services-is-luring-banks-to-the-cloud.html

  • How to compare cloud costs between Amazon, Microsoft and Google

    One advantage of IaaS is that customers can spin resources up and down as needed. But the most expensive way to buy cloud-based virtual machines is to pay for them on-demand. If customers plan and commit to a long-term contract, they will save money.

    In AWS, the primary way to do this is by using Reserved Instances (RIs). “You get the discount in exchange for making a one-year or three-year commitment with the longer commitment giving a higher discount,” RightScale engineers explain. “If you also pay for some or all of that committed usage upfront, the discount gets larger.” RightScale says discounts of RIs compared to on-demand VMs range from 24% to 75%.

    http://www.networkworld.com/article/3145470/cloud-computing/how-to-compare-cloud-costs-between-amazon-microsoft-and-google.html

  • American Airlines selects IBM as its Cloud provider

    As part of the partnership, American Airlines will move select enterprise applications to IBM’s Cloud. The airline will be able to leverage the global footprint of IBM Cloud, which consists of more than 50 data centers spanning 17 countries, as well as a wide range of application development capabilities through IBM Bluemix. In addition the company will have access to IBM advanced analytics capabilities and technologies, all of which will enable the company to advance its enterprise into a cognitive infrastructure that offers greater resiliency and better customer experiences.

    https://www.traveldailynews.com/post/american-airlines-selects-ibm-as-its-cloud-provider

  • Amazon Web Services is rolling out a way to use to use just the GPU power you need

    That means companies can tap into just a sliver of GPU power, or a larger amount, on demand as they need it and pay for that amount. GPUs can run a ton of tasks in parallel and have a lot of advantages in certain compute situations, like rendering games. But some lightweight processes don’t necessary require a full GPU cluster, which running for a company — especially a smaller one — might become prohibitively expensive very quickly. The new product, introduced at AWS Re:Invent, is called Elastic GPU for EC2.

    https://techcrunch.com/2016/11/30/amazon-web-services-is-rolling-out-a-way-to-use-to-use-just-the-gpu-power-you-need

  • Docker for AWS: Who’s it really for?

    The biggest clue as to who Docker for AWS is aimed at: its use of CloudFormation as its interface to AWS. Cloud Formation was created to allow AWS services to be stood up as a single unit, without the user needing intimate knowledge of how to configure each piece. Configuring services like Elastic Load Balancing or CloudWatch isn’t a trivial process, and most AWS components have a learning curve associated with them.

    Docker for AWS reduces the overall learning curve for those who want to use Docker—and Docker Swarm—on AWS. But users can also manually configure a setup later on if the need arises.

    http://www.infoworld.com/article/3145696/application-development/docker-for-aws-whos-it-really-for.html

Datacenter

  • Here’s More Bad News for Tech Hardware Makers

    Spending by small and medium businesses (SMBs) on laptops, PCs, peripherals, and other hardware will show a just a 1.1% compound annual growth rate (CAGR) over the next four years compared to 6.6% growth in software spending, and 3.8% growth in IT services spending, according to IDC.

    http://fortune.com/2016/11/28/tech-hardware/
    sn_spending_growth
    Note: This article is a bit of a mess. Cloud is not called out specifically but is probably included in business services, which includes outsourcing.

  • Hewlett Packard Enterprise Demonstrates World’s First Memory-Driven Computing Architecture

    “We have achieved a major milestone with The Machine research project — one of the largest and most complex research projects in our company’s history,” said Antonio Neri, Executive Vice President and General Manager of the Enterprise Group at HPE. “With this prototype, we have demonstrated the potential of Memory-Driven Computing and also opened the door to immediate innovation. Our customers and the industry as a whole can expect to benefit from these advancements as we continue our pursuit of game-changing technologies.”

    https://www.hpe.com/us/en/newsroom/news-archive/press-release/2016/11/1287610-hewlett-packard-enterprise-demonstrates-worlds-first-memory-driven-computing-architecture.html

Software/SaaS

  • IBM is continuing its blockchain push

    Putting blockchain to use for real-world transactions is likely not that far off. If working groups’ tests are successful, firms could be using it to transact real value as early as the end of this year and we could see widespread industry application within the next few years.

    http://www.businessinsider.com/ibm-is-continuing-its-blockchain-push-2016-12
    sn_blockchain

Other

  • Why Have IBM’s Global Business Services Failed to Grow?

    The government remained tight-lipped about the specifics of what was discussed, but did say that among the topics of discussion was the IT skills gap and the Digital Single Market – an initiative to ensure people and businesses across the continent can access digital services seamlessly and are subject to the same rules and regulations.

    http://marketrealist.com/2016/11/ibms-global-business-services-failed-grow-2/

Photo: vedanti