Category Archives: Tech News

Rockset launches out of stealth with $21.5 M investment

Posted by on 1 November, 2018

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Rockset, a startup that came out of stealth today, announced $21.5M in previous funding and the launch of its new data platform that is designed to simplify much of the processing to get to querying and application building faster.

As for the funding, it includes $3 million in seed money they got when they started the company, and a more recent $18.5 million Series A, which was led by Sequoia with participation from Greylock.

Jerry Chen, who is a partner at Greylock sees a team that understands the needs of modern developers and data scientists, one that was born in the cloud and can handle a lot of the activities that data scientists have traditionally had to handle manually. “Rockset can ingest any data from anywhere and let developers and data scientists query it using standard SQL. No pipelines. No glue. Just real time operational apps,” he said.

Company co-founder and CEO Venkat Venkataramani is a former Facebook engineer where he learned a bit about processing data at scale. He wanted to start a company that would help data scientists get to insights more quickly.

Data typically requires a lot of massaging before data scientists and developers can make use of it and Rockset has been designed to bypass much of that hard work that can take days, weeks or even months to complete.

“We’re building out our service with innovative architecture and unique capabilities that allows full-featured fast SQL directly on raw data. And we’re offering this as a service. So developers and data scientists can go from useful data in any shape, any form to useful applications in a matter of minutes. And it would take months today,” Venkataramani explained.

To do this you simply connect your data set wherever it lives to your AWS account and Rockset deals with the data ingestion, building the schema, cleaning the data, everything. It also makes sure you have the right amount of infrastructure to manage the level of data you are working with. In other words, it can potentially simplify highly complex data processing tasks to start working with the raw data almost immediately using SQL queries.

To achieve the speed, Venkataramani says they use a number of indexing techniques. “Our indexing technology essentially tries to bring the best of search engines and columnar databases into one. When we index the data, we build more than one type of index behind the scenes so that a wide spectrum of pre-processing can be automatically fast out of the box,” he said. That takes the burden of processing and building data pipelines off of the user.

The company was founded in 2016. Chen and Sequoia partners Mike Vernal joined the Rockset board under the terms of the Series A funding, which closed last August.

DeepMap, a maker of HD maps for self-driving, raised at least $60M at a $450M valuation

Posted by on 1 November, 2018

This post was originally published on this site

As car and tech companies continue to make inroads on vehicles and services to build autonomous driving systems, a startup that is creating high-definition maps to help these vehicles move around has quietly picked up a significant round of funding.

DeepMap — a Palo Alto startup co-founded by James Wu and Mark Wheeler, who previously helped build maps and more at Google, Apple and Baidu — has raised a significant round of growth funding at a valuation of at least $475 million to expand its technology stack and its reach into more markets beyond its current footprint of the US and China.

Founded in 2016, DeepMap has been relatively quiet since raising $25 million in 2017, but news about this round has been trickling out for the last few months. In July, the company filed papers for a $60 million Series B round. In August, it noted that Nvidia had joined the round, which by that point was “oversubscribed” but still not closed.

And today, Generation Investment Management — the VC firm that counts former Vice President Al Gore and others among its co-founders — also confirmed that it is part of that Series B, along with previous investors Andreessen Horowitz, Accel Partners, and GSR Ventures, and new investor Robert Bosch Venture Capital. PitchBook notes that the round puts the valuation of DeepMap at $450 million post-money. However, with Generation added to the mix, both the size of the Series B and the valuation might both be higher.

We’ve asked and Generation and DeepMap are not disclosing those details, but they have said that the investment is being made because the interests of the startup are in line with that of the VC.

“DeepMap and Generation share the deeply-held belief that autonomous vehicles will lead to environmental and social benefits,” said Wu, who is the CEO of DeepMap (Wheeler is the CTO), in a statement. “We are delighted to work with the talented team at Generation. We consider Generation to be a value-added investor, whose insights and mission-aligned network will be of great advantage as we scale, especially in Europe.”

DeepMap is not exactly in stealth mode, but it also doesn’t disclose much about what it is working on specifically, nor how the funding will be used. (But it is hiring, mostly in engineering roles, in Palo Alto and Beijing.)

Companies like Waymo are expanding their autonomous driving tests, Lyft is buying companies to help ingest more driving data more easily, and just this week Baidu announced new car plans with Volvo and Ford, but there are still some crucial pieces that need to be put in place for self-driving to become a wide-scale reality, and one of them is building systems that have an accurate reading of the roads that they are driving on.

HD mapping will play a key role in that regard, helping make systems more accurate with real-time localization features that respond to road types and driving conditions. DeepMap says that it provides centimeter-specific accuracy using “real-world data, not models” and the ability to incorporate 3D landmark features and full 3D environments using “true LiDAR intensity and RGB values data” for simulation tools.

While DeepMap does not detail its products on its site, one report describes its offering as including hardware tools, software solutions, field data collection services, and a service that is able to translate the self-driving fleet data that companies are now in the process of collecting “into their own personalized HD maps.” The same report claimed that DeepMap charges about $5,000 per kilometer for mapping services in the US.

DeepMap is also not the only company working on addressing this need for better and more accurate mapping: mapping startup Camera is also raising money to build its service; DeepMap’s investor NVIDIA is also working on this problem; and lvl5 is another name we’ve also seen mentioned in this context.

The funding, and these partnerships, will likely help DeepMap cement its position on the map, so to speak as all of these continue to grow.

“DeepMap is perfectly placed to address the imminent needs of autonomous vehicles. These vehicles will require HD maps and localization modules which are real-time, scalable, economically-viable, and machine-readable, something which DeepMap can deliver through its unique approach,” said Lilly Wollman, Co-Head of Generation’s Growth Equity team, in a statement. “We are very excited to partner with one of the most technically impressive and experienced teams in the industry.”

Spoke enhances AI engine to power help desk ticketing system

Posted by on 1 November, 2018

This post was originally published on this site

Spoke, a startup that wants to simplify the way companies add and process help desk tickets using artificial intelligence underpinnings, announced it has enhanced its AI engine to allow for more complex queries.

The company founders were working at Google after a previous startup had been sold to the search giant when they encountered a problem with help desk ticket processing. It was spread across different tools and generally more complicated than they thought it needed to be.

Like all good entrepreneurs, when they left Google in 2016, they were looking for their next challenge, and they decided to attack this pain point which they felt acutely in their time at Google. Like many startups, that pain point gave rise to a new company and they started Spoke .

The product launched last March and the company already 150 customers. The idea with the service is to provide an intelligent internal ticketing system, whether that’s for HR, IT or other internal help desk.

They wanted to make the tool as conversational as possible, so you simply enter a question or statement such as ‘the WiFi is down in my conference room’ or ‘how much vacation do I have left.’ The system generally recognizes the type of request — WiFi would go to IT and vacation to HR — and it moves the ticket through the system accordingly. If there is a relevant knowledge base article available, it might pull that as suggested reading. They say they have gotten to the point that 50 percent of requests can be resolved automatically without routing to a human.

Along the way, it keeps asking for feedback so that that the artificial intelligence engine underlying the tool can learn what it got right and wrong and adjust accordingly in the future.

While the tool has its own complete interface, the founders recognized that people work in different ways, so they have also built integrations with Zapier (the workflow tool) and Slack, allowing customers to take that Spoke functionality and use it inside the tools they commonly use at work without explicitly having to open the Spoke tool.

The company has 20 full time employees at the moment. Customers include DoorDash, Evernote and Charitywater. They have raised $28 million.

HPE and NASA make supercomputer on ISS available for experiments

Posted by on 1 November, 2018

This post was originally published on this site

Last year, HPE successfully built and installed a supercomputer on the International Space Station that could withstand the rigors of being in space. Today, the company announced that it is making that computer available for earth-based developers and scientists to conduct experiments.

Mark Fernandez, who has the lofty title of America’s HPC Technology Officer at HPE, says that the project was born with the idea that if we eventually go to Mars, we will need computers that can withstand the travel conditions of being in space for extended periods of time.

What’s more, because space computers have traditionally lacked the sophistication of earth-based computers, they conduct some of the work in space and then complete the calculations on earth. With an eye toward a Mars trip, this approach would not be feasible due to the distances and latency that would be involved. They needed a computer that could handle processing at the edge (in place) without sending data back to earth.

The original idea was to build a supercomputer with the state of the art off-the-shelf parts as and install it on the ISS as an experiment to see if this could work. They built the one teraflop computer in the summer of 2017 and launched it into space on a SpaceX rocket. The computer was built with Intel Broadwell processors, which Fernandez says were the best available at the time.

The first step was to see if the computer they built could handle the launch, the cold temperatures of waiting to be on-boarded, the solar radiation and generally uncommon conditions of being in space.

Once installed, they needed to figure out if this computer could operate in the power and cooling environment available onboard the ISS, which is not close to what you would have in earth-based datacenter with a highly controlled environment. Finally, once installed, would the computer operate correctly and give accurate answers.

The special sauce here was a package of software they call Hardened with Software. “We wrote a thin, lightweight way suite of software to quote-unquote, harden our systems of software, so you can take state of the art with you,” he said.

The computer was launched in August 2017 and has been operating ever since, and Fernandez says that it has worked according to plan. “So we’ve achieved our signed, dated and contracted mission. We have a one teraflop supercomputer on board the International Space Station with Intel Broadwell processors.” He says that supercomputer has flown around the earth 6000 times since launch.

The company now wants to open this computer up as a kind of service to earth-based developers and scientists to experiment with high-latency jobs that would have required some processing on earth. With the HPE Spaceborne Computer available to use, they can see what processing this information at the edge would be like (and if it would work). The computer will be in operation until some time next year, and in the meantime interested parties need to apply to HPE and NASA to get involved.

Neo4j nabs $80M Series E as graph database tech flourishes

Posted by on 1 November, 2018

This post was originally published on this site

Neo4j has helped popularize the graph database. Today it was rewarded with an $80 million Series E to bring their products to a wider market in what could be the company’s last private fundraise.

The round was led by One Peak Partners and Morgan Stanley Expansion Capital with participation from existing investors Creandum, Eight Roads and Greenbridge Partners. Today’s investment exactly doubles their previous amount bringing the total raised to $160 million.

Neo4j founder and CEO Emil Eifrem didn’t want to discuss valuation, calling it essentially a vanity metric. “We’re not sharing that. I never understood that. It’s just weird bragging rights. It makes no sense to customers, and makes no sense to anyone,” he said referring to the valuation.

Graph view of Neo4j funding rounds. Graphic: Neo4j

When you bring a company like Morgan Stanley on as an investor, it could be interpreted as a kind of signal that the company is thinking ahead to going public. While Eifrem wasn’t ready to commit to anything, he suggested that this is very likely the last time he raises funds privately. He says that he doesn’t like to think in terms of how he will exit so much as building a good company and seeing where that takes him. “If your mental framework is around building a great company, you’re going to have all kinds of options along the way. So that’s what I’m completely focused on,” Eifrem explained.

In 2016, when his company got a $36 million Series D investment, Eifrem says that they were working to expand in the enterprise. They have been successful with around 200 enterprise customers to their credit including Walmart, UBS, IBM and NASA. He says their customers include 20 of the top 25 banks and 7 of the top 10 retailers.

This year, the company began expanding into artificial intelligence. It makes sense. Graph databases help companies understand the connections in large datasets and AI usually involves large amounts of data to drive the learning models.

Two common graph database use case examples are the social graph on a social site like Facebook, which lets you see the connections between you and your friends or the purchase graph on an Ecommerce site like Amazon which lets you see if you bought one product, chances are you’ll also be interested in these others (based on your purchase history and what other consumers have done who have bought similar products).

Eifrem wants to use the money to expand the company internationally and provide localized service in terms of language and culture wherever their customers happen to be. As an example, he says today European customers might get an English speaking customer service agent if they called in for help. He wants to provide service and the website in the local language and the money should help accomplish that.

Neo4j was founded in 2007 as an open source project. Companies and individuals can still download the base product for free, but the company has also built a successful and growing commercial business on top of that open source project. With an $80 million runway, the next stop could be Wall Street.

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.

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.

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.

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.”

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.

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