All posts by Richy George

The hybrid cloud market just got a heck of a lot more compelling

Posted by on 30 October, 2018

This post was originally published on this site

Let’s start with a basic premise that the vast majority of the world’s workloads remain in private data centers. Cloud infrastructure vendors are working hard to shift those workloads, but technology always moves a lot slower than we think. That is the lens through which many cloud companies operate.

The idea that you operate both on prem and in the cloud with multiple vendors is the whole idea behind the notion of the hybrid cloud. It’s where companies like Microsoft, IBM, Dell and Oracle are placing their bets. These died-in-the-wool enterprise companies see their large customers making a slower slog to the cloud than you would imagine, and they want to provide them with the tools and technologies to manage across both worlds, while helping them shift when they are ready.

Cloud-native computing developed in part to provide a single management fabric across on prem and cloud, freeing IT from having two sets of tools and trying somehow to bridge the gap between the two worlds.

What every cloud vendor wants

Red Hat — you know, that company that was sold to IBM for $34 billion this week — has operated in this world. While most people think of the company as the one responsible for bringing Linux to the enterprise, over the last several years, it has been helping customers manage this transition and build applications that could live partly on prem and partly in the cloud.

As an example, it has built OpenShift, its version of Kubernetes. As CEO Jim Whitehurst told me last year, “Our hottest product is OpenShift. People talk about containers and they forget it’s a feature of Linux,” he said. That is an operating system that Red Hat knows a thing or two about.

With Red Hat in the fold, IBM can contend that being open source; they can build modern applications on top of open source tools and run them on IBM’s cloud or any of their competitors, a real hybrid approach.

Microsoft has a huge advantage here, of course, because it has a massive presence in the enterprise already. Many companies out there could be described as Microsoft shops, and for those companies moving from on prem Microsoft to cloud Microsoft represents a less daunting challenge than starting from scratch.

Oracle brings similar value with its core database products. Companies using Oracle databases — just about everyone — might find it easier to move that valuable data to Oracle’s cloud, although the numbers don’t suggest that’s necessarily happening (and Oracle has stopped breaking out its cloud revenue).

Dell, which spent $67 billion for EMC, making the Red Hat purchase pale by comparison, has been trying to pull together a hybrid solution by combining VMware, Pivotal and Dell/EMC hardware.

Cloud vendors reporting

You could argue that hybrid is a temporary state, that at some point, the vast majority of workloads will eventually be running in the cloud and the hybrid business as we know it today will continually shrink over time. We are certainly seeing cloud infrastructure revenue skyrocketing with no signs of slowing down as more workloads move to the cloud.

In their latest earnings reports, those who break out such things, the successful ones, reported growth in their cloud business. It’s important to note that these companies define cloud revenue in different ways, but you can see the trend is definitely up:

  • AWS reported revenue of $6.7 billion in revenue for the quarter, up from $4.58 billion the previous year.
  • Microsoft Intelligent Cloud, which incorporates things like Azure and server products and enterprise services, was at $8.6 billion, up from $6.9 billion.
  • IBM Technology Services and Cloud Platforms, which includes infrastructure services, technical support services and integration software reported revenue of $8.6 billion, up from $8.5 billion the previous year.
  • Others like Oracle and Google didn’t break out their cloud revenue.

Show me the money

All of this is to say, there is a lot of money on the table here and companies are moving more workloads at an increasingly rapid pace.  You might also have noticed that IBM’s growth is flat compared to the others. Yesterday in a call with analysts and press, IBM CEO Ginni Rometty projected that revenue for the hybrid cloud (however you define that) could reach $1 trillion by 2020. Whether that number is exaggerated or not, there is clearly a significant amount of business here, and IBM might see it as a way out of its revenue problems, especially if they can leverage consulting/services along with it.

There is probably so much business that there is room for more than one winner, but if you asked before Sunday if IBM had a shot in this mix against its formidable competitors, especially those born in the cloud like AWS and Google, most probably wouldn’t have given them much chance.

When Red Hat eventually joins forces with IBM, it at least gives their sales teams a compelling argument, one that could get them into the conversation — and that is probably why they were willing to spend so much money to get it. It puts them back in the game, and after years of struggling, that is something. And in the process, it has stirred up the hybrid cloud market in a way we didn’t see coming last week before this deal.

Posted Under: Tech News
Cockroach Labs launches CockroachDB as managed service

Posted by on 30 October, 2018

This post was originally published on this site

Cockroach Lab’s open source SQL database, CockroachDB, has been making inroads since it launched last year, but as any open source technology matures, in order to move deeper into markets it has to move beyond technical early adopters to a more generalized audience. To help achieve that, the company announced a new CockroachDB managed service today.

The service has been designed to be cloud-agnostic, and for starters it’s going to be available on Amazon Web Services and Google Cloud Platform. Cockroach, which launched in 2015, has always positioned itself as modern cloud alternative to the likes of Oracle or even Amazon’s Aurora database.

As company co-founder and CEO Spencer Kimball told me in an interview in May, those companies involve too much vendor lock-in for his taste. His company launched as open alternative to all of that. “You can migrate a Cockroach cluster from one cloud to another with no down time,” Kimball told TechCrunch in May.

He believes having that kind of flexibility is a huge advantage over what other vendors are offering, and today’s announcement carries that a step further. Instead of doing all the heavy lifting of setting up and managing a database and the related infrastructure, Cockroach is now offering CockroachDB as a service to handle all of that for you.

Kimball certainly recognizes that by offering his company’s product in this format, it will help grow his market. “We’ve been seeing significant migration activity away from Oracle, AWS Aurora, and Cassandra, and we’re now able to get our customers to market faster with Managed CockroachDB,” Kimball said in a statement.

The database itself offers the advantage of being ultra-resilient, meaning it stays up and running under most circumstances and that’s a huge value proposition for any database product. It achieves up time through replication, so if one version of itself goes down, the next can take over.

As an open source tool, it has been making money up until now by offering an enterprise version, which includes backup, support and other premium pieces. With today’s announcement, the company can get a more direct revenue stream from customers subscribing to the database service.

A year ago, the company announced version 1.0 of CockroachDB and $27 million in Series B financing, which was led by Redpoint with participation from Benchmark, GV, Index Ventures and FirstMark. They’ve obviously been putting that money to good use developing this new managed service.

Posted Under: Tech News
Assessing IBM’s $34 billion Red Hat acquisition

Posted by on 29 October, 2018

This post was originally published on this site

As you look at the $34 billion IBM-Red Hat deal announced yesterday, if you follow the enterprise closely, it seems like a good move, at least on its face. It could be years before we understand the true value of it for IBM (or lack thereof, depending on how it ultimately goes). The questions stands then, is this a savvy move, a desperate one or perhaps a bit of both. It turns out, it depends on whom you ask.

For starters, there is the sheer amount of money involved, a 63 percent premium on Friday’s closing price of just under $117 a share. IBM spent $190 a share, but as Ray Wang, founder and chief analyst at Constellation Research said, Red Hat didn’t necessarily want to be sold, so IBM had to overpay to get their company.

Wang sees cloud, Linux and security as the big drivers on IBM’s part. “IBM is doubling down on the cloud, but they also are going for a grab in Linux for their largest and most important open source communities and some of the newer tech on Red Hat security,” he told TechCrunch. He acknowledges that it’s a huge premium for the stock, but he believes IBM needs the M&A action to drive down customer acquisition costs and drive up cross sell.

Photo: Ron Miller

IBM is placing a big bet here says Dharmesh Thakker, general partner at Battery Ventures, believing it to be worth 30x its current earnings in the next 12 months. “Needless to say, the hybrid cloud opportunity that we have been working on the last few years, is real and IBM/Cisco/HP/Dell all want a piece of this action going forward as the $300B in datacenter spend gets dislocated by public and hybrid cloud vendors,” Thakker explained in a statement.

He believes this deal could actually trigger a new set of mega mergers between the traditional tech vendors and cloud native, container and DevOps companies over the next few months.

IBM CEO Ginni Rometty was positively giddy at the prospects of a combined IBM-Red Hat in a call with analysts and press this morning, pointing out that only 20 percent of enterprise workloads have been moved to the cloud. She sees a big opportunity, one she projects to be worth $1 trillion by 2020. Keeping in mind you should take market projections with a grain of salt, this is undoubtedly a big market and one that Oracle and Microsoft have also targeted.

She said that Red Hat was a rare company indeed. “Red Hat on its own has been a high value company and has done a great job with strong growth, is highly profitable and generates cash. There are not many companies out there that look like that in this area,” Rometty said.

Slide: IBM

Dan Scholnick, general partner at Trinity Ventures, whose investments have included New Relic and Docker, was not terribly impressed with the deal, believing it smacked of desperation on IBM’s part.

“IBM is a declining business that somehow needs to become relevant in the cloud era. Red Hat is not the answer. Red Hat’s business centers around an operating system, which is a layer of the technology stack that has been completely commoditized by cloud. (If you use AWS, you can get Amazon’s OS for free, so why would you pay Red Hat?) Red Hat has NO story for cloud,” he claimed in a statement.

That might not be an entirely fair assessment. While Red Hat Enterprise Linux is a big part of the company’s revenue, it’s not the only piece. Over the last couple of years it has moved into Kubernetes and containerization and has grown the cloud native side of the business alongside RHEL.

In fact, Forrester analyst Dave Bartoletti sees the cloud native piece as being key here. “The combined company has a leading Kubernetes and container-based cloud-native development platform, and a much broader open source middleware and developer tools portfolio than either company separately. While any acquisition of this size will take time to play out, the combined company will be sure to reshape the open source and cloud platforms market for years to come,” he said.

Photo: IBM

Wang believes the deal could hinge on how long Red Hat CEO Jim Whitehurst, who had led the company for over a decade, stays with the unit. According to IBM, they will maintain the Red Hat brand and operate it as an independent entity inside Big Blue. “If Whitehurst doesn’t stick around for awhile, the deal could go south,” he said. But the company could dangle the CEO job when Rometty decides to leave as incentive to stay.

Regardless, Wall Street was not entirely happy with IBM’s move with their stock down all day. Needless to say the 63 percent premium IBM paid for the stock has driven Red Hat higher today.

The deal must pass shareholder muster, but given the premium IBM has offered, it’s hard to believe they would turn it down. In addition, since these companies operate across the world, they are subject to the global regulatory approval process. They won’t officially come together until at least the second half of next year at the soonest. That’s when we might begin to learn whether this was a brilliant or desperate move by IBM.

Posted Under: Tech News
Atlassian sells Jitsi, an open-source videoconferencing tool it acquired in 2015, to 8×8

Posted by on 29 October, 2018

This post was originally published on this site

After announcing earlier this year that it planned to shut down HipChat and Stride and sell the IP of both to Slack, today enterprise software company Atlassian made another move related to its retreat from enterprise chat. It is selling Jitsi, a popular open-source chat and videoconferencing tool, to 8X8, a provider of cloud-based business phone and internal communications services. 8X8 says it plans to integrate Jitsi with its current conferencing solutions, specifically a product called 8X8 Meetings, and to keep it open source.

Terms of this latest sale to 8×8 have not been disclosed. Both the tech and the engineering team working on Jitsi, led by Emil Ivov, are coming with the acquisition.

Atlassian originally acquired Jitsi and its owner BlueJimp for an undisclosed sum in 2015 with the intention of adding video communications to HipChat, and later Stride (which launched in 2017).

But now those two products are headed for the graveyard — they are both being discontinued on February 15, 2019 — and that made Jitsi less core to Atlassian’s new direction, where it is focusing less on enterprise chat, and more on tools for developers and customer care, including Jira, Trello, and Bitbucket (a competitor to GitHub).

The deal is one of the final moves for Atlassian as it focuses more on its business building and operating productivity tools that are not direct competitors in the crowded field of enterprise chat applications. It seems that in any case, Jitsi is hoping for more investment under its new owner.

“This is a great thing and will only help to keep Jitsi’s momentum with renewed investment,” writes Ivov in a blog post announcing the news. “The Jitsi team will remain 100 percent intact and will continue to be an independent group. Operationally things will work much the same way as they did under Atlassian. Jitsi users and developers won’t see any impact, though we do expect with continued funding and support you will see even more new features and capabilities from the project!”

Technology in the acquisition includes Jitsi’s modular open-source projects for businesses to build and deploy secure video communication solutions based around WebRTC; the Jitsi Videobridge conferencing server; and the Jitsi Meet conferencing and collaboration application.

“The best video communications solutions are so intuitive and reliable that they help employees conduct shorter, more productive meetings. 8×8 has already developed a world-class meetings solution for enterprises, and we’re focused on maintaining leadership in delivering reliable, crystal-clear video and audio conferencing quality across mobile and desktop applications,” said Dejan Deklich, Chief Product Officer at 8×8, in a statement. “Incorporating Jitsi’s open-source technology into our video communications technology platform, and having Jitsi’s talented engineering team play a role in leading our development of dedicated conferencing applications and WebRTC, will open new paths for our customers and further enhance our meetings solution.”

Jitsi’s tools are used by a variety of platforms and businesses that want to include videoconferencing but would rather use an independent third-party service rather than incorporate one from a would-be competitor or build it themselves. Customers include Comcast and Symphony, the chat app used by the financial services industry.

“Some of the most innovative WebRTC products and companies use Jitsi to support millions of minutes of daily usage as part of their meetings, messaging and collaboration product ecosystems. The open source community has played a critical role in advancing Jitsi’s projects by validating its use in a diverse set of environments and complementing the core team’s development. As part of this acquisition, 8×8 is committed to continuing to support the growing developer community, and we are excited to engage even more,” commented Bryan Martin, Chairman and Chief Technology Officer at 8×8.

This past weekend’s big news of IBM acquiring Red Hat for $34 million has emphasised just how central open source and cloud-based software are in today’s enterprise IT market. This purchase is far smaller, but is also part of that bigger trend.

“8×8 sees tremendous value in the open source community and is committed to helping grow the community even larger,” Ivov notes. “With a major, high-motivated backer like 8×8 behind the project, we are confident about our ability to continue building great open source products.”

Posted Under: Tech News
IBM is betting the farm on Red Hat — and it better not mess up

Posted by on 29 October, 2018

This post was originally published on this site

Who expects a $34 billion deal involving two enterprise powerhouses to drop on a Sunday afternoon, but IBM and Red Hat surprised us yesterday when they pulled the trigger on a historically large deal.

IBM has been a poster child for a company moving through a painful transformation. As Box CEO (and IBM business partner) Aaron Levie put it on Twitter, sometimes a company has to make a bold move to push that kind of initiative forward:

They believe they can take their complex mix of infrastructure/software/platform services and emerging technologies like artificial intelligence, blockchain and analytics, and blend all of that with Red Hat’s profitable fusion of enterprise open source tools, cloud native, hybrid cloud and a keen understanding of the enterprise.

As Jon Shieber pointed out yesterday, it was a tacit acknowledgement that company was not going to get the results it was hoping for with emerging technologies like Watson artificial intelligence. It needed something that translated more directly into sales.

Red Hat can be that enterprise sales engine. It already is a company on a $3 billion revenue run rate, and it has a goal of hitting $5 billion. While that’s somewhat small potatoes for a company like IBM that generates $19 billion a quarter, it represents a crucial addition.

That’s because in spite of its iffy earnings reports over the last five years, Synergy Research reported that IBM had 7 percent of the cloud infrastructure market in its most recent report, which it defines as Infrastructure as a Service, Platform as a Service and hosted private cloud. It is the latter that IBM is particularly good at.

The company has the pieces in place now and a decent amount of marketshare, but Red Hat gives it a much more solid hybrid cloud story to tell. They can potentially bridge that hosted private cloud business with their own public cloud (and presumably even those of their competitors) and use Red Hat as a cloud native and open source springboard, giving their sales teams a solid story to tell.

IBM already has a lot of enterprise credibility on its own, of course. It sells on top of many of the same open source tools as Red Hat, but it hasn’t been getting the sales and revenue momentum that Red Hat has enjoyed. If you combine the enormous IBM sales engine and their services business with that of Red Hat, you have the potential to crank this into a huge business.

Photo: Ron Mller

It’s worth noting that the deal needs to pass shareholder muster and clear global regulatory hurdles before they can combine the two organizations. IBM has predicted that it will take at least until the second half of next year to close this deal and it could take even longer.

IBM has to use that time wisely and well to make sure when they pull the trigger, these two companies blend as smoothly as possible across technology and culture. It’s never easy to make these mega deals work with so much money and pressure involved, but it is imperative that Big Blue not screw this up. This could very well represent its last best chance to right the ship once and for all.

Posted Under: Tech News
Google beefs up Firebase platform for the enterprise

Posted by on 29 October, 2018

This post was originally published on this site

Today at the Firebase Summit in Prague, Google announced a number of updates to its Firebase app development platform designed to help it shift from an environment for individuals or small teams into a full-blown enterprise development tool.

Google acquired Firebase 4 years ago to help developers connect to key cloud tools like a database or storage via a set of software development kits (SDKs). Over time, it has layered on sophisticated functionality like monitoring to fix performance issues and access to analytics to see how users are engaging with the app, among other things. But the toolkit hasn’t necessarily been geared towards larger organizations until now.

“[Today’s announcements] are going to be around a set of features and updates that are catered more towards enterprises and sophisticated app teams that are looking to build and grow their mobile apps,” Francis Ma, head of product at Firebase told TechCrunch.

Perhaps the biggest piece of news was that they were adding corporate support. While the company boasts 1.5 million apps per month running on Firebase, in order to move deeper into the enterprise, it needed to have a place corporate IT could call when they run into issues. That is coming with the company expected to announce various support packages in Beta by the end of the year. These will be tied to broader Google Cloud Platform support.

“With this launch, if you already have a paid GCP Support package, you will be able to get your Firebase questions answered through the Google Cloud Platform (GCP) Support Console. Once the change is fully launched, Firebase support will be included at no additional charge with paid GCP Support packages, which includes target response times, a dedicated technical account manager (if you are enrolled in Enterprise Support) and more,” Ma explained in a blog post.

In addition, larger teams and organizations need more management tools and the company announced the Firebase Management API. This allows programmatic access to manage project workflows from IDE to Firebase. Ma says this includes direct integration with StackBlitz and Glitch, two web-based IDEs. “Their platforms will now automatically detect when you are creating a Firebase app and allow you to deploy to Firebase Hosting with the click of a button, without ever leaving their platforms,” Ma wrote.

There were a bushel of other announcements including access to better facial recognition tools in the Google ML kit announced last spring. There were also improvements to Crashlytics performance monitoring, which includes integration with PagerDuty now, and Firebase Predictions, its analytics tool, which is now generally available after graduating from Beta.

All of these announcements and more, are part of a maturation of the Firebase platform as Google aims to move it from a tool aimed directly at developers to one that can be integrated at the enterprise level.

Posted Under: Tech News
Forget Watson, the Red Hat acquisition may be the thing that saves IBM

Posted by on 28 October, 2018

This post was originally published on this site

With its latest $34 billion acquisition of Red Hat, IBM may have found something more elementary than “Watson” to save its flagging business.

Though the acquisition of Red Hat  is by no means a guaranteed victory for the Armonk, N.Y.-based computing company that has had more downs than ups over the five years, it seems to be a better bet for “Big Blue” than an artificial intelligence program that was always more hype than reality.

Indeed, commentators are already noting that this may be a case where IBM finally hangs up the Watson hat and returns to the enterprise software and services business that has always been its core competency (albeit one that has been weighted far more heavily on consulting services — to the detriment of the company’s business).

Watson, the business division focused on artificial intelligence whose public claims were always more marketing than actually market-driven, has not performed as well as IBM had hoped and investors were losing their patience.

Critics — including analysts at the investment bank Jefferies (as early as one year ago) — were skeptical of Watson’s ability to deliver IBM from its business woes.

As we wrote at the time:

Jefferies pulls from an audit of a partnership between IBM Watson and MD Anderson as a case study for IBM’s broader problems scaling Watson. MD Anderson cut its ties with IBM after wasting $60 million on a Watson project that was ultimately deemed, “not ready for human investigational or clinical use.”

The MD Anderson nightmare doesn’t stand on its own. I regularly hear from startup founders in the AI space that their own financial services and biotech clients have had similar experiences working with IBM.

The narrative isn’t the product of any single malfunction, but rather the result of overhyped marketing, deficiencies in operating with deep learning and GPUs and intensive data preparation demands.

That’s not the only trouble IBM has had with Watson’s healthcare results. Earlier this year, the online medical journal Stat reported that Watson was giving clinicians recommendations for cancer treatments that were “unsafe and incorrect” — based on the training data it had received from the company’s own engineers and doctors at Sloan-Kettering who were working with the technology.

All of these woes were reflected in the company’s latest earnings call where it reported falling revenues primarily from the Cognitive Solutions business, which includes Watson’s artificial intelligence and supercomputing services. Though IBM chief financial officer pointed to “mid-to-high” single digit growth from Watson’s health business in the quarter, transaction processing software business fell by 8% and the company’s suite of hosted software services is basically an afterthought for business gravitating to Microsoft, Alphabet, and Amazon for cloud services.

To be sure, Watson is only one of the segments that IBM had been hoping to tap for its future growth; and while it was a huge investment area for the company, the company always had its eyes partly fixed on the cloud computing environment as it looked for areas of growth.

It’s this area of cloud computing where IBM hopes that Red Hat can help it gain ground.

“The acquisition of Red Hat is a game-changer. It changes everything about the cloud market,” said Ginni Rometty, IBM Chairman, President and Chief Executive Officer, in a statement announcing the acquisition. “IBM will become the world’s number-one hybrid cloud provider, offering companies the only open cloud solution that will unlock the full value of the cloud for their businesses.”

The acquisition also puts an incredible amount of marketing power behind Red Hat’s various open source services business — giving all of those IBM project managers and consultants new projects to pitch and maybe juicing open source software adoption a bit more aggressively in the enterprise.

As Red Hat chief executive Jim Whitehurst told TheStreet in September, “The big secular driver of Linux is that big data workloads run on Linux. AI workloads run on Linux. DevOps and those platforms, almost exclusively Linux,” he said. “So much of the net new workloads that are being built have an affinity for Linux.”

Posted Under: Tech News
IBM to buy Red Hat for $34B in cash and debt, taking a bigger leap into hybrid cloud

Posted by on 28 October, 2018

This post was originally published on this site

After rumors flew around this weekend, IBM today confirmed that it would acquire open source, cloud software business Red Hat for $190 per share in cash, working out to a total value of $34 billion. IBM said the deal has already been approved by the boards of directors of both IBM and Red Hat but is still subject to Red Hat shareholder and regulatory approvals. If all goes as planned, the acquisition is expected to close in the latter half of 2019.

The deal is all about IBM, which has long continued to rely on its legacy server business, taking a bigger bet on the cloud, and very specifically cloud services that blend on-premises and cloud-based architectures — something that the two companies have already been working on together since May of this year (which now might be looked at as a test drive). Red Hat will be a distinct unit within IBM’s Hybrid Cloud team — which is already a $19 billion business for IBM, the company said — and it will continue to focus on open-source software. 

“The acquisition of Red Hat is a game-changer. It changes everything about the cloud market,” said Ginni Rometty, IBM Chairman, President and Chief Executive Officer, in a statement. “IBM will become the world’s number-one hybrid cloud provider, offering companies the only open cloud solution that will unlock the full value of the cloud for their businesses.”

The combined businesses will be able to offer software in services spanning Linux, containers, Kubernetes, multi-cloud management, and cloud management and automation, IBM said. IBM also added that together the companies will continue to build partnerships with multiple cloud providers, including AWS, Microsoft’s Azure, Google Cloud, Alibaba and others, alongside the IBM Cloud.

As Josh Constine notes here, it’s one of the biggest-ever tech acquisitions, and arguably the biggest that is dedicated primarily to software. (Dell acquired EMC for $67 billion, to pick up software but also a substantial hardware and storage business.)

While companies like Amazon have gone all-in on cloud, in many cases, a lot of enterprises are making the move gradually — IBM cites stats that estimate that some 80 percent of business workloads “have yet to move to the cloud, held back by the proprietary nature of today’s cloud market.” Buying Red Hat will help IBM better tap into an opportunity to address that.

“Most companies today are only 20 percent along their cloud journey, renting compute power to cut costs,” she continued. “The next 80 percent is about unlocking real business value and driving growth. This is the next chapter of the cloud. It requires shifting business applications to hybrid cloud, extracting more data and optimizing every part of the business, from supply chains to sales.”

On top of that, it will give IBM a much stronger footing in open source software, the core of what Red Hat builds and deploys today.

“Open source is the default choice for modern IT solutions, and I’m incredibly proud of the role Red Hat has played in making that a reality in the enterprise,” said Jim Whitehurst, President and CEO, Red Hat, in a statement. “Joining forces with IBM will provide us with a greater level of scale, resources and capabilities to accelerate the impact of open source as the basis for digital transformation and bring Red Hat to an even wider audience –  all while preserving our unique culture and unwavering commitment to open source innovation.”

While IBM competes against the likes of Amazon, the companies will see to remain partners with them with this acquisition. “IBM is committed to being an authentic multi-cloud provider, and we will prioritize the use of Red Hat technology across multiple clouds” said Arvind Krishna, Senior Vice President, IBM Hybrid Cloud, in a statement. “In doing so, IBM will support open source technology wherever it runs, allowing it to scale significantly within commercial settings around the world.”

IBM said that Red Hat will add to its revenue growth, gross margin and free cash flow within 12 months of closing.

Posted Under: Tech News
Microsoft has no problem taking the $10B JEDI cloud contract if it wins

Posted by on 26 October, 2018

This post was originally published on this site

The Pentagon’s $10 billion JEDI cloud contract bidding process has drawn a lot of attention. Earlier this month, Google withdrew, claiming ethical considerations. Amazon’s Jeff Bezos responded in an interview at Wired25 that he thinks that it’s a mistake for big tech companies to turn their back on the U.S. military. Microsoft president Brad Smith agrees.

In a blog post today, he made clear that Microsoft intends to be a bidder in government/military contracts, even if some Microsoft employees have a problem with it. While acknowledging the ethical considerations of today’s most advanced technologies like artificial intelligence, and the ways they could be abused, he explicitly stated that Microsoft will continue to work with the government and the military.

“First, we believe in the strong defense of the United States and we want the people who defend it to have access to the nation’s best technology, including from Microsoft,” Smith wrote in the blog post.

To that end, the company wants to win that JEDI cloud contract, something it has acknowledged from the start, even while criticizing the winner-take-all nature of the deal. In the blog post, Smith cited the JEDI contract as an example of the company’s desire to work closely with the U.S. government.

“Recently Microsoft bid on an important defense project. It’s the DOD’s Joint Enterprise Defense Infrastructure cloud project – or “JEDI” – which will re-engineer the Defense Department’s end-to-end IT infrastructure, from the Pentagon to field-level support of the country’s servicemen and women. The contract has not been awarded but it’s an example of the kind of work we are committed to doing,” he wrote.

He went on, much like Bezos, to wrap his company’s philosophy in patriotic rhetoric, rather than about winning lucrative contracts. “We want the people of this country and especially the people who serve this country to know that we at Microsoft have their backs. They will have access to the best technology that we create,” Smith wrote.

Microsoft president Brad Smith. Photo: Riccardo Savi/Getty Images

Throughout the piece, Smith continued to walk a fine line between patriotic duty to support the U.S. military, while carefully conceding that there will be different opinions in a large and diverse company population (some of whom aren’t U.S. citizens). Ultimately, he believes that it’s critical that tech companies be included in the conversation when the government uses advanced technologies.

“But we can’t expect these new developments to be addressed wisely if the people in the tech sector who know the most about technology withdraw from the conversation,” Smith wrote.

Like Bezos, he made it clear that the company leadership is going to continue to pursue contracts like JEDI, whether it’s out of a sense of duty or economic practicality or a little of both — whether employees agree or not.

Posted Under: Tech News
Microsoft closes its $7.5B purchase of code-sharing platform GitHub

Posted by on 26 October, 2018

This post was originally published on this site

After getting EU approval a week ago, today Microsoft’s acquisition of GitHub, the Git-based code sharing and collaboration service with 31 million developers, has officially closed. The Redmond, WA-based software behemoth first said it would acquire GitHub for $7.5 billion in stock in June of this year, and after the acquisition closed it would continue to run it as an independent platform and business.

The acquisition is yet another sign of how Microsoft has been doubling down on courting developers and presenting itself as a neutral partner to help them with their projects.

That is because, despite its own very profitable proprietary software business, Microsoft also has a number of other businesses — for example, Azure, which competes with AWS and Google Cloud — that rely heavily on it being unbiased towards one platform or another. And GitHub, Microsoft hopes, will be another signal to the community of that position.

In that regard, it will be an interesting credibility test for the companies.

As previously announced, Nat Friedman, who had been the CEO of Xamarin (another developer-focused startup acquired by Microsoft, in 2016), will be CEO of the company, while GitHub founder and former CEO Chris Wanstrath will become a Microsoft technical fellow to work on strategic software initiatives. (Wanstrath had come back to his CEO role after his co-founder Tom Preston-Werner resigned following a harassment investigation in 2014.)

Friedman, in a short note, said that he will be taking over on Monday, and he also repeated what Microsoft said at the time of the deal: GitHub will be run as an independent platform and business.

This is a key point because there has been a lot of developer backlash over the deal, with many asking if GitHub would become partial or focused more around Microsoft-based projects  or products.

“We will always support developers in their choice of any language, license, tool, platform, or cloud,” he writes, noting that there will be more tools to come. “We will continue to build tasteful, snappy, polished tools that developers love,” he added.

One of those, he noted, will be further development and investment in Paper Cuts, a project it launched in August that it hopes will help address some of the gripes that its developer-users might have with how GitHub works that the company itself hadn’t been planning to address in bigger product upgrades. The idea here is that GitHub can either help find workarounds, or this will become a feedback forum of its own to help figure out what it should be upgrading next on the site.

Of course, the need to remain neutral is not just to keep hold of its 31 million developers (up by 3 million since the deal was first announced), but to keep them from jumping to GitHub competitors, which include GitLab and Bitbucket.

Posted Under: Tech News
Page 6 of 179« First...45678...203040...Last »

Social Media

Bulk Deals

Subscribe for exclusive Deals

Recent Post

Archives

Facebook

Twitter

Subscribe for exclusive Deals




Copyright 2015 - InnovatePC - All Rights Reserved

Site Design By Digital web avenue