Category Archives: Google

AI, fibre, Financial Results, Google, News & Analysis

Google grows (again) but ‘Other Bets’ cost the giant $1bn

GoogleGoogle has reported its Q2 numbers, continuing a strong run of performances within the technology industry, though efforts to diversify its overall business are not paying off just yet, reports Telecoms.com.

The Alphabet brand was announced last year, with aim of allowing the team to invest in other projects more freely, without being impeded by the advertising business. It would appear the management team are not afraid to throw R&D money at its innovation team as it searches for another billion-dollar business, as the ‘Other Bets’ segment, which includes Google Fibre and the autonomous cars projects, accounted for an operating loss of $859 million. Revenues did grow to $185 million, up 150% on the same quarter in 2015, though this number was made almost insignificant by the $19 billion generated in the advertising business.

The technology industry on the whole has been providing strong numbers over the last couple of weeks, though there has been a question as to whether two advertising giants can co-exist. With Facebook reporting significant growth yesterday, advertising revenues across the period increased 63% year-on-year to $6.2 billion, these numbers were dwarfed by Google, perhaps demonstrating there is potential for both organizations to share advertising revenues, which are decreasing in value, and grow healthily.

With regard to the dwindling value of advertising revenues, Google would appear to be combatting this with volume. CFO Ruth Porat highlighted the mobile search capabilities were the primary driver behind the year-on-year growth, though the desktop and tablet search did also grow.

Numbers such as these will grab headlines, meaning it can be easy to forget about the Google cloud business, one of the top priorities for the Alphabet business moving forward.

On the same day which AWS reported revenues of $2.9 billion for the quarter, Google’s cloud business also demonstrated solid growth. Although the numbers are not specific, the ‘Other’ revenues segment which includes the cloud business, and other services such as Google play, accounting for $2.1 billion through the three month period, an increase of 33% on Q2 2015.

“Many tremendous digital experiences are being built in the cloud today, and businesses are working to take advantage of the cloud as part of their digital transformation,” said Google CEO Sundar Pichai. “We’ve been integrating our cloud and apps products to create more unified solutions for companies large and small, and these efforts are paying off.”

Following on from Pichai’s previous comments on the role of artificial intelligence on the Google cloud platform, and the wider Google business, its importance has been reiterated once again. Machine learning is being prioritized as the differentiator for Google in a competitive technology market, and only last week the team introduced two cloud machine learning APIs for speech and natural language to help enterprise customers convert audio to text and easily understand the structure and sentiment of the text in a variety of languages.

In terms of footprint, the team are not done growing yet. At the end of last month, Google and friends completed work on a new trans-Pacific submarine cable system, which will help the team launch a new Google Cloud Platform East Asia region in Tokyo. Back in March, the team confirmed it would be investing heavily in expansion of its cloud footprint with 12 new data centres around the world by the end of 2017.

AWS has previously stated it intends to break the $10 billion barrier in cloud revenues during 2016, though Google may not be that far behind. With its history of not being afraid to invest, and the growth numbers which have been witnessed over the last few quarters, Google could be set to accelerate.

Avanto, Google, Media, News & Analysis, TV

Google adds media capabilities with Anvato purchase

Google AvantoGoogle has bolstered its capabilities in the video streaming market through acquiring video platform Anvato which will join its cloud business unit.

Anvato provides a software platform that fully automates the encoding, editing, publishing and secure distribution of video content across multiple platforms. The acquisition will improve Google’s capabilities to recruit media companies to its cloud storage business, in the long-term quest to gain ground on Microsoft Azure and AWS in the cloud market segment.

“Anvato’s Media Content Platform, which counts many large media companies as customers, will complement our efforts to enable scalable media processing and workflows in the cloud,” said Belwadi Srikanth, Senior Product Manager at Google. “The cloud is transforming the way video content is created and distributed to an array of connected devices, as well as the way users engage with this content. And in recent years, the adoption of over-the-top (OTT) technologies has emerged as a critical platform for delivering rich audio, video and other media via the Internet.”

Offerings such as Anvato’s have been pushed to prominence in recent years as more video content moves into the OTT category. Google already counts a number of media outlets as customers, including Sky News and Spotify, though the continuing OTT trend will generate more demand for cloud services. The Anvato purchase will add several other media heavy hitters to the customer list such as NBCUniversal, Univision, Scripps Networks, Fox Sports, Media General.

“We are thrilled to bring together Anvato with the scale and power of Google Cloud Platform to provide the industry’s best offering for OTT and mobile video,” said Alper Turgut, CEO at Avanto. “This will allow us to supercharge our capabilities, accelerate the pace of innovation, and deliver tomorrow’s video solutions faster, enabling media companies to better serve their customers.”

AI, Artificial intelligence, Google, Image Recognition, News & Analysis

Google adds image recognition to growing AI portfolio

Googlers having funGoogle has continued its charge on the artificial intelligence market through purchasing French image recognition startup Moodstocks, reports Telecoms.com.

Moodstocks, founded in 2008, develops machine-learning based image recognition technology for smartphones, which has been described by developers as the ‘Shazam for images’. Financials of the agreement have not been confirmed to date.

“Ever since we started Moodstocks, our dream has been to give eyes to machines by turning cameras into smart sensors able to make sense of their surroundings,” Moodstock said on its website. “Today, we’re thrilled to announce that we’ve reached an agreement to join forces with Google in order to deploy our work at scale. We expect the acquisition to be completed in the next few weeks.”

Artificial intelligence is one of the focal points of the Google strategy moving forward, which was confirmed by Google CEO Sundar Pichai during the company’s recent earnings call, though the focus can be dated back to the $625 million DeepMind acquisition in 2014. Although DeepMind is arguably the most advanced AI system in the industry, Telecoms.com readers recently confirmed in a poll Google was the leader in the AI segment, it has seemingly been playing catch up with the likes of Watson and AWS whose offerings have been in the public eye for a substantially longer period of time.

The recognition tools are most likely to be incorporated into the Android operating system, though Moodstocks customers will be able to continue to use the service until the end of their subscription. Moodstocks will be incorporated into Google’s R&D centre in France, where the team will work alongside engineers who are focusing on the development of Youtube and Chrome, two offerings where there could be a link to the Moodstocks technology.

“Many Google services use machine learning (or machine learning) to make them simpler and more useful in everyday life – such as Google Translate, Smart Reply Inbox, or the Google app,” said Vincent Simonet, Head of R&D centre of Google’s French unit. “We have made great strides in terms of visual recognition: now you can search in Google Pictures such as ‘party’ or ‘beach’ and the application will offer you good pictures without you and have never needed to categorize them manually.”

Last month, Google also announced it was expanding its machine research team by opening a dedicated office in Zurich. The team will focus on three areas specifically, machine intelligence, natural language processing & understanding, as well as machine perception.

Elsewhere in the industry, Twitter completed the acquisition of Magic Pony last month reportedly for $150 million. Magic Pony, which offers visual processing technology, was one of the more public moves made by the social media network, which could be seen as unusual as the platform lends itself well to the implementation of AI. Microsoft also announced the purchase of Wand Labs, building on the ‘Conversation-as-a-Platform’ proposition put forward by CEO Satya Nadella at Build 2016.

AI, Android, Artificial intelligence, Google, Machine learning, News & Analysis

Image recognition startup joins Google in France

Googlers having funGoogle has continued its charge on the artificial intelligence market through purchasing French image recognition startup Moodstocks, reports Telecoms.com.

Moodstocks, founded in 2008, develops machine-learning based image recognition technology for smartphones, which has been described by developers as the ‘Shazam for images’. Financials of the agreement have not been confirmed to date.

“Ever since we started Moodstocks, our dream has been to give eyes to machines by turning cameras into smart sensors able to make sense of their surroundings,” Moodstock said on its website. “Today, we’re thrilled to announce that we’ve reached an agreement to join forces with Google in order to deploy our work at scale. We expect the acquisition to be completed in the next few weeks.”

Artificial intelligence is one of the focal points of the Google strategy moving forward, which was confirmed by Google CEO Sundar Pichai during the company’s recent earnings call, though the focus can be dated back to the $625 million DeepMind acquisition in 2014. Although DeepMind is arguably the most advanced AI system in the industry, Telecoms.com readers recently confirmed in a poll Google was the leader in the AI segment, it has seemingly been playing catch up with the likes of Watson and AWS whose offerings have been in the public eye for a substantially longer period of time.

The recognition tools are most likely to be incorporated into the Android operating system, though Moodstocks customers will be able to continue to use the service until the end of their subscription. Moodstocks will be incorporated into Google’s R&D centre in France, where the team will work alongside engineers who are focusing on the development of Youtube and Chrome, two offerings where there could be a link to the Moodstocks technology.

“Many Google services use machine learning (or machine learning) to make them simpler and more useful in everyday life – such as Google Translate, Smart Reply Inbox, or the Google app,” said Vincent Simonet, Head of R&D centre of Google’s French unit. “We have made great strides in terms of visual recognition: now you can search in Google Pictures such as ‘party’ or ‘beach’ and the application will offer you good pictures without you and have never needed to categorize them manually.”

Last month, Google also announced it was expanding its machine research team by opening a dedicated office in Zurich. The team will focus on three areas specifically, machine intelligence, natural language processing & understanding, as well as machine perception.

Elsewhere in the industry, Twitter completed the acquisition of Magic Pony last month reportedly for $150 million. Magic Pony, which offers visual processing technology, was one of the more public moves made by the social media network, which could be seen as unusual as the platform lends itself well to the implementation of AI. Microsoft also announced the purchase of Wand Labs, building on the ‘Conversation-as-a-Platform’ proposition put forward by CEO Satya Nadella at Build 2016.

Broadband, Google, News & Analysis, wireless

Google Fiber adds Miami and Boston to roster

GoogleGoogle has entered into a definitive agreement to acquire Webpass to boost its Google Fiber business unit and add to its wireless broadband ambitions, reports Telecoms.com.

The acquisition builds on an area of innovation which the Google Fiber team have been investigating. Webpass has paired its fiber network with wireless technology, an idea which the Google team have been testing in Kansas City earlier this year. Back in April, Google was given approval to test its 3.5 GHz wireless broadband capabilities using antennas on light poles and various other structures, in and around the Kansas City area. The FCC commented the innovation could create a new flavour of wifi or even an LTE Unlicensed band.

Webpass was founded in 2003, and claims to have customers in the “tens of thousands”, though these are primarily apartment blocks and business users, two demographics which are likely to be of interest to Google. Webpass has focused its sights on business users in recent months, providing services in the range of 100 megabits per second to one gigabit per second, and also operates in two markets Google Fiber which has no exposure; Miami and Boston.

“Google Fiber’s resources will enable Webpass to grow faster and reach many more customers than we could as a standalone company,” said Charles Barr, President at Webpass. “I’m very much looking forward to this next chapter for Webpass, and let me take this opportunity to once again say thank you to all of our loyal customers. We are thrilled to be on this journey together.”

While the deal is still subject to the customary approval process from regulators, it is the first acquisition for the Google Fiber business, indicating the company’s intensions in the arena. The Google Fiber business has been growing at a healthy rate in the last 18 months, though the addition of Webpass will give the company traction in five significant markets in the US, including major cities such as San Francisco, San Diego, Miami, Chicago, and Boston.

AWS, Google, Hotels.com, Microsoft, News & Analysis, Public Cloud

The rest of the world is catching up with AWS – Hotels.com CIO

Speaking at Cloud and DevOps World, Hotels.com CIO Theirry Bedos outlined some of the cloud industry’s growing trends, including the erosion of AWS’ dominant position, reports Telecoms.com.

The growth of the cloud industry has been well documented over recent months, as numerous studies and surveys dominate web searches claiming adoption rates are accelerating. While it is still debatable if cloud has penetrated the mainstream market, according to Bedos, what is clear is the industry is heading that direction; there’s no turning around now.

“The world is becoming fluffier and fluffier,” said Bedos. “There are countless studies and surveys on the internet which show the cloud is becoming more popular and widely used, which is only good for the industry. AWS is still the number one player in the market, but the rest are starting to catch up now. This is one of the most interesting trends which we are seeing.”

As with the acceptance and adoption of any new technology, there are bound to be a number of underlying trends. For Bedos, one of the more interesting of those trends is the acceptance there is another way aside from AWS.

While AWS is still considered the leader in the industry, controlling notably more market share than other cloud providers, the lead is slimming. Microsoft and Google have both been prominent over the course of the last 18 months in bolstering their cloud capabilities, and this has not gone unnoticed by the industry. Although cloud adoption rates are increasing, AWS is getting a smaller and smaller slice of the pie as customers are taking alternatives into consideration.

This should not be considered a major surprise, as this is a trend which has been witnessed with the growth of other technology sub-sectors. Back in the early 2000s, Netscape’s web browser was once dominant in terms of usage share, but lost most of that share to Internet Explorer during the so-called first ‘Browser War’. Bedos highlighted Netscape was first to market, and enjoyed that position for some time until the proposition became normalized and competition grew. This is the same trend AWS is undertaking currently.

“I’m not saying AWS will disappear in the same way Netscape did, but we’re going to see other players chip away at their market share,” said Bedos. That said, the increased competition and drive to acquire new customers could see the balance of power shift towards the consumer.

On top of the increased competition, Bedos also commented on the USPs of the individual cloud providers themselves. Buyers generally buy for a specific reason and these USPs in the cloud provider’s offerings is starting to fund the trend of multi-cloud environments in the enterprise business. Why choose when you can have the best of multiple cloud worlds? For Bedos, this is driving the trend of interoperability. Before too long moving workloads and data sets between different cloud environments will be a simple task, as vendors appreciate a lock-in situation will negatively impact their own business. Co-operation could potentially be the new battle ground.

AWS will continue; they are continuing to innovate and have the backing of one of the worlds’ most recognizable brands. However, increased competition, as well as the tendency of buyers to prefer a multi-cloud proposition, will see a more even playing field, and the bargaining power of these deals potentially leaning towards the consumer.

AI, Artificial intelligence, Google, Machine learning, Microsoft, News & Analysis, Twitter

Machine learning front and centre of R&D for Microsoft and Google

Dear Future Im Ready, message on paper, smart phone and coffee on tableMicrosoft and Google have announced plans to expand their machine learning capabilities, through acquisition and new research offices respectively, reports Telecoms.com.

Building on the ‘Conversation-as-a-Platform’ proposition put forward by CEO Satya Nadella at Build 2016, the Microsoft team has announced plans to acquire Wand Labs. The purchase will add weight to the ‘Conversation-as-a-Platform’ strategy, as well as supporting innovation ambitions for Bing intelligence.

“Wand Labs’ technology and talent will strengthen our position in the emerging era of conversational intelligence, where we bring together the power of human language with advanced machine intelligence,” said David Ku, Corporate Vice President of the Information Platform Group on the company’s official blog. “It builds on and extends the power of the Bing, Microsoft Azure, Office 365 and Windows platforms to empower developers everywhere.”

More specifically, Wand Labs adds expertise in semantic ontologies, services mapping, third-party developer integration and conversational interfaces, to the Microsoft engineering team. The ambition of the overarching project is to make the customers experience more seamless by harnessing human language in an artificial environment.

Microsoft’s move into the world of artificial intelligence and machine learning has not been a smooth ride to date, though this has not seemed to hinder investment. Back in March, the company’s AI inspired Twitter account Tay went into melt-down mode, though the team pushed forward, updating its Cortana Intelligence Suite and releasing its Skype Bot Platform. Nadella has repeatedly highlighted artificial intelligence and machine learning is the future for the company, stating at Build 2016:

“As an industry, we are on the cusp of a new frontier that pairs the power of natural human language with advanced machine intelligence. At Microsoft, we call this Conversation-as-a-Platform, and it builds on and extends the power of the Microsoft Azure, Office 365 and Windows platforms to empower developers everywhere.”

Google’s efforts in the machine learning world have also been pushed forward this week, as the team announced dedicated machine learning research based in the Zurich offices, on its blog. The team will focus on three areas specifically, machine intelligence, natural language processing & understanding, as well as machine perception.

Like Microsoft, Google has prioritized artificial intelligence and machine learning, though both companies will be playing catch-up with the likes of IBM and AWS, whose AI propositions have been in the market for some time. Back in April, Google CEO Sundar Pichai said in the company’s earnings call “overall, I do think in the long run, I think we will evolve in computing from a mobile first to an AI first world,” outlining the ambitions of the team.

Google itself already has a number of machine learning capabilities incorporated in its product portfolio, those these could be considered as relatively rudimentary. Translate, Photo Search and SmartReply for Inbox already contains aspects of machine learning, though the team are targeting more complex and accurate competencies.

Elsewhere, Twitter has announced on their blog advertisers will now be able to utilize emoji keyword targeting for Twitter Ads. This new feature uses emoji activity as a signal of a person’s mood or mind set, allowing advertisers to more effectively communicate marketing messages minimizing the potential for backlash of disgruntled twitter users. Although the blog does not state the use of machine learning competencies, it does leave the opportunity for future innovation in the area.

AWS, Google, hybrid cloud, IBM, Microsoft, News & Analysis

AWS, Google, Microsoft and IBM pull away from pack in race for cloud market share

racing horses starting a raceNew findings from Synergy Research highlight the cloud market is still dominated by AWS, Google, Microsoft and IBM, as the pack is seemingly struggling to gain ground in the race for market share.

AWS still leads the way in the segment, accounting for roughly 31% of the global market share, with IBM, Google and IBM collectively accounting for the next 22%. The next 20 players in the market, companies such as HPE, VMWare and Alibaba for example, account for a collective 27%. AWS year-on-year growth was estimated at 57% while Google and Microsoft both demonstrated more than 100% growth over the same period.

“This is a market that is so big and is growing so rapidly that companies can be growing by 10-30% per year and might feel good about themselves and yet they’d still be losing market share,” said John Dinsdale, Chief Analyst at Synergy Research Group. “The big question for them is whether or not they are building a sustainable and profitable business. This can be done by focusing on specific regions or specific services, but the bulk of the market demands huge scale, a broad footprint, very deep pockets and a long-term corporate focus.”

Worryingly for the rest of the pack outside of the top four, the gap would appear to be growing as AWS, Google, Microsoft and IBM are pulling further ahead. The 20 companies outside the top four averaged year-on-year growth of approximately 41%, though Synergy claim the cloud segment grew more than 50% over the course of Q1.

The team estimate the quarterly cloud infrastructure service revenues, which include IaaS, PaaS and private & hybrid cloud, has now surpassed the $7 billion milestone, with the US accounting for roughly 50% of the worldwide market share.

 

Growth

AWS, containers, Enterprise IT, Google, Microsoft, News & Analysis

What did BCN readers say last week?

What do you think written on whiteboardOver the past week, we took the opportunity to gauge the opinion of the BCN readership on industry trends and issues, through a number of polls. Here’s what we found out:

Microsoft is unlikely to be successful? 58% say no

For the most part, Microsoft’s lawsuit has been keep out of the headlines. This is unlikely to indicate the whole episode is unimportant to the industry, but maybe more due to the fact the story has been overshadowed by the ongoing saga between Apple and the FBI.

In any case, Microsoft filed a lawsuit against the US government, citing the first and fourth amendment with regard to government agencies using secrecy orders to access its customer’s emails or records. From Microsoft’s perspective, the company should have the right to tell customers the government is accessing their data, aside from in exceptional circumstances. The government disagrees.

While the tech giant has taken it upon itself to fight the good fight alone, BCN readers are a bit more sceptical on the success of the venture. Only 42% believe Microsoft’s lawsuit will be successful, though this is a question which is unlikely to be answered for a substantial period of time. Any decision will be appealed by the despondent party, dragging out any decisions or changes in government practise.

When will containers hit mainstream? 21% say right now

Containers are one of the hottest trends in 2016. We recently ran a buzzword-buster article not only discussing what containers actually are, but more importantly what the value to enterprise actually is. Since then there have been numerous announcement focused around the technology, from Microsoft to Red Hat to Juniper, indicating containers are starting to get some traction.

But how much of the press is a smoke-screen and how much is reality? In short, it’s looking quite positive.

Cloud took a healthy amount of time to be trusted and understood by the mainstream market, and maybe it is this longer adoption time which has accelerated containers as a technology. 21% of BCN readers highlighted that they are currently using the technology in a meaningful way in their business currently, 50% believe it will be in the next 1-2 years, and only 29% said longer than three years.

Who is the best innovator in the cloud industry? 75% still say AWS

Last week AWS launched a host of new features at the AWS Chicago Summit, ranging from new security features, tools which simplify the movement of data around an organizations cloud, platforms for automatically deploying and running apps on Amazon’s cloud infrastructure, testing features, as well as authentication services.

Although this is the first major update from AWS in some time, Google and Microsoft have been feverishly bolstering their offerings over the last six months ranging from new hires, to new features and new acquisitions. Industry insiders have even told us at BCN that AWS could be seen to be sitting back to much, offering Google and Microsoft the opportunity to improve their own standing, and make up ground on the number one player in the cloud space.

BCN readers do not agree however. 75% believe AWS is still by far and away the industry leader, 10% believe AWS, Google and Microsoft are all on par, while 15% believe innovation has faltered at AWS, and the rest of the industry is catching up fast.

Is DevOps mainstream? 48% say no

DevOps is another of the buzzwords which has floated over from 2015 into 2016. However, as buzzwords go, few have captured the attention of the industry in the same manner. Such is the prominence of DevOps, it seems although every company is now a DevOps specialist, DevOps expert or DevOps orientated organization.

In fact, this isn’t only vendors who have adopted DevOps, but pretty much every enterprise decision maker has DevOps on the lips also. The main concern here is the definition of DevOps can be seen as lost on certain organizations. Yes, there are practitioners of the methodology, though there are also a host of people who have taken the phrase without fully understanding the implications and the means to implement such an idea.

And it would appear BCN readers also agree with that assumption. Despite DevOps being one of the most used words in the cloud industry, only 52% of our readers believe DevOps has hit the mainstream market.

AI, Google, News & Analysis

Google backs AI over VR

Googlers having funGoogle CEO Sundar Pichai has backed growth of artificial intelligence over virtual reality as the next era of computing.

Speaking on the company’s earnings call, where Google reported year-on-year revenue growth of 23% to $20.3 billion for Q1, Pichai highlighted investments in machine learning projects and artificial intelligence will continue, though the team is not discounting virtual reality completely.

“And overall, I do think in the long run, I think we will evolve in computing from a mobile first to an AI first world,” said Pichai. “And I do think we are at the forefront of development. So we don’t view it as adapting to it as much as pushing hard and getting there. And so that’s the core of what we do, and we’ll continue to do that.”

While the company has been making progress in the world of AI in recent months, Google launched its Cloud Machine Learning product last month, it has seemingly been playing catch up with the likes of Watson and AWS whose offerings have been in the public eye for a substantially longer period of time. Although it could be seen to be playing catch-up, Pichai believes increased investments and prioritization of AI could be the market differentiator for Google.

“We do think we are competent across a range of work flows,” said Pichai. “And areas where we view we will be uniquely capable over time is, because of our machine learning capabilities, helping enterprises really understand their data, understand how best they can do what their core competency is and really revolutionize around that. It’s early days and it’s a long-term investment. But bringing our machine learning APIs over time through cloud to our enterprise customers is going be a huge source of differentiation for us.”

The company has in recent months been aggressively building its position in the public cloud market, and from what Pichai has said on the earnings call, it would appear this charge will continue. Pichai claims Google has been doing cloud, internally at least, since its inception, though the company has now matured its processes to ensure it is able to serve customers in an effective manner. Pichai also believes the acceptance of AI in enterprise, and the introduction of Diane Greene, positions Google in a bold stance to improve its share of the cloud computing segment.

“Last December, we have unified our cloud businesses under one leader (Diane Greene), so we can innovate faster and better serve our customers,” said Pichai. “This decision is already paying off. Enterprises are starting to see the power of combining Google Cloud Platform with our suite of business applications, all of which are infused with our machine learning services.”