Friday 18 March 2016

Structure News: When Apple met Google

STRUCTURE EVENTS Newsletter
 
Where Our Cloud Prices Are Insane
March 18th, 2016 / by Tom Krazit
This week, we'll talk Dropbox going solo, Google's triumphant AlphaGo victory, and Apple's plans for its infrastructure needs.
STRUCTURE NEWS
DATA SCIENCE IS A RECRUITING TOOL FOR DIVERSE CANDIDATES AT AIRBNB
One session that stood out for me personally at Structure Data was the discussion about how Airbnb's Elena Grewal (pictured, left) worked with the company's recruiters to apply data science principles to its hiring process in order to solve for diversity. They're not quite there yet (the company is now 30 percent women, as compared to 15 percent last year) but it shows the benefits of having all departments -- not just product -- be data driven.

HORTONWORKS CEO ROB BEARDEN THINKS THE DATA EXPLOSION HAS ONLY BEGUN

Rob Bearden probably has a different opinion of Wall Street these days than he did a few years ago, but he didn't appear very worried at Structure Data 2016 about investors eventually realizing how valuable big data can be. With projections that the amount of data will increase by 10x over the next ten years, and the complexity of that data increasing at a similar rate, he's got a point.
INDUSTRY NEWS
MINECRAFT TO RUN ARTIFICIAL INTELLIGENCE EXPERIMENTS
One of the shrewdest things Microsoft did in the last few years was buy Minecraft, one of the most ubiquitous video games among the younger set. The company plans to take advantage of that popularity by running a few tests (opt-in only) to help train AI algorithims on dealing with complex, open-ended worlds, according to BBC News.

THE EPIC STORY OF DROPBOX'S EXODUS FROM THE AMAZON CLOUD EMPIRE

One topic I like to ask fast-growing cloud-native web startups about at Structure is how they think about "the datacenter tipping point;" the point at which -- if you're fortunate enough -- you've grown so big that it starts to make sense to bring more things in-house. Wired takes us through the two-and-a-half year process Dropbox went through in moving its storage system, arguably the very core of its service, from Amazon Web Services to its own hardware.

GET RICH OR HACK TRYIN'

In what might have been the first hip-hop themed blog post title ever written by Google, the company announced it was doubling its bug bounty for those trying to hijack a Chromebook. It also introduced a new bounty on bugs involving its Safe Browsing feature on Chrome, showing how important web companies continue to feel that keeping the outside hacker network friendly and active is a good security measure.

QUIETLY, SYMBOLICALLY, US CONTROL OF THE INTERNET WAS JUST ENDED

We won't be able to judge the effects of this for a long time, but this is a big deal: ICANN members, after a two-year process, have agreed to transfer control over internet addresses and domain names from a non-profit kinda-sorta controlled by the U.S. government to a consortium of leaders from multiple countries. The Guardian has a nice analysis piece from former ICANN member Maria Farrell on how the world got to this point.

WHAT WE LEARNED IN SEOUL WITH ALPHAGO

Google's AlphaGo contest was an amazing thing to follow for anyone interested in the future of artificial intelligence, and Dennis Hassabis, CEO of the company's DeepMind unit, shared a few reflections in a blog post this week. "But as they say about Go in Korean: 'Don’t be arrogant when you win or you’ll lose your luck,'" he wrote. "This is just one small, albeit significant, step along the way to making machines smart."

US GOVERNMENT PUSHED TECH FIRMS TO HAND OVER SOURCE CODE

The tech industry's side-eye looks at the intentions of government law enforcement officials this year might be partly informed by what they've had to put up with already. ZDNet reported Thursday that the U.S. government has pushed companies to share source code with the government (it's not clear if any actually had) through the secret FISA court, which is an amazing request of a modern software company that no sane executive would ever willingly sign off on.
BIG PICTURE
We all like to think of the tech industry as the clash of rival titans, and for a long time Apple and Google have given us that satisfaction. Ever since the birth of Android, the CA-85 rivalry has been one of the hottest in tech, with plenty of overheated rhetoric and genuine dislike on both sides.

But neither company is stupid. Under Diane Greene, Google is courting big customers for its Google Cloud Platform, likely at fire-sale prices. Apple is smart with its money and creating a little competition among big suppliers is smart. So it makes sense that Apple has struck a $400 million to $600 million cloud-computing deal with Google, as first reported by CRN Wednesday.

As Recode later reported, Apple appears to see this deal with Google as just a stopgap while it builds out its own datacenters to run iCloud, iTunes, and all of Apple's other internet services. Project McQueen (as in Steve, look it up, Millennials) is a fascinating undertaking, as Apple tries to build the world-class computing system its rivals have enjoyed for decades while operating under its customary cloak of secrecy.

Still, it's a coup for Google, as it has won the business of one of the world's most demanding buyers of the technology and services needed to run its operation and dented Amazon Web Services, its much larger competitor. I definitely agree with Om Malik that most likely, Google gave away this business, and that in general, the tech world needs more transparency in cloud pricing and financial performance to help startups and bigger companies that don't have Apple's leverage make supplier decisions.

We haven't really had a public cloud rivalry yet: Amazon has run so far ahead of the pack for so long it's been  kind of silly to call Microsoft's Azure and GCP rivals. But Azure is one of the biggest parts of Microsoft's future strategy, and Google is clearly willing to fight for business. Google's competitive focus might be shifting north.

One of my biggest questions about this revolutionary cloud era is whether the new guard in enterprise software will eventually mimic the strategies and tactics of the old guard of enterprise computing as their businesses grow. Over the next five years, we're going to figure that out.

Image Credit: Flickr user Jan Tik
 
 
 
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