Inside Cloud - December 13th, 2019

Inside Cloud (Dec 13th, 2019)

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1. Oracle’s share price dropped after the company announced that its second-quarter revenues fell short of Wall Street estimates. The company reported a year-over-year revenue increase of 0.4 percent representing the sixth consecutive quarter that sales have failed to grow by at least one percent. The sluggish growth in Oracle’s legacy software has not been offset by its aggressive push into cloud computing. Second-quarter revenue from cloud services grew by three percent to $6.81 billion; by comparison, Microsoft in October announced that its revenues from cloud computing increased by 36 percent in the latest quarter to $11.6 billion. The company's share price fell in late trading Thursday and continued its slide Friday, falling more than three percent to 54.75 by midday. INVESTOR’S BUSINESS DAILY

2. Since winning a hotly-contested cloud computing contract with the Pentagon, Microsoft has busied itself recruiting talent from defense contractors and getting security clearances for employees, sources told CNBC. The Joint Enterprise Defense Infrastructure project, or JEDI, could be worth up to $10 billion and is at the center of a lawsuit filed against the Department of Defense by Amazon, which contends that President Trump instructed Pentagon officials to “screw” the company’s CEO, Jeff Bezos by awarding the contract to its rival, Microsoft. Hundreds of Microsoft engineers have received security clearances to work on the project so far, but the company still faces a backlog of nearly 18 months.  Microsoft has scheduled two recruiting events in January in the Washington D.C. suburb of Reston, Virginia, near CIA headquarters in Langley. —  CNBC 

3. Oracle this week announced that it will move its marquee annual conference, OpenWorld, to Las Vegas, following a litany of complaints about hotel costs and cleanliness of its longtime venue, San Francisco. Nearly 60,000 conferees attended this year’s event in September, and Oracle’s relocation will cost the city an estimated $64 million annually, according to the San Francisco Travel Association. The city is grappling with a homelessness crisis triggered in part by the city's high cost of living. San Francisco has hosted OpenWorld since it started in 1997.SFGATE

4. A Chinese data center owned by the tech giant Tencent claims that it raised $3.7 billion in an initial fundraising round last month. The deal represents the largest venture capital deal in the history of the data center industry, and possibly the largest of its kind for any industry, financial experts said. The investment bank Morgan Stanley is among the leading financiers of the project, billed as an effort to integrate IT with China’s vast manufacturing sector.DATA CENTER KNOWLEDGE

5. Adobe Systems on Thursday reported fourth-quarter earnings and revenues that surpassed Wall Street forecasts. Quarterly profit for the enterprise cloud software developer increased to $851.86 million, or $1.76 per share, from $678.24 million and $1.39 per share in the year-ago period. Adobe reported revenues of $2.99 billion representing an increase of 21 percent from the fourth quarter in 2018, and adjusted earnings of $2.29 per share, three cents higher than the average forecast offered by 27 Wall Street analysts who responded to a Thomson Reuters questionnaire.—  NASDAQ

6. Spending from hyper-scale operators on data center hardware and software has increased six percent over the past five years and represents 67 percent of total spending for cloud service providers, according to a recent study by Synergy Research. That represents a decline in the percentage of overall cloud expenditures from 85 percent in 2014 while total spending worldwide for data center infrastructure reached $38 billion in the third quarter of 2019.CLOUD TECH

7. With a tight labor market and growing concerns about the pace of climate change, Ireland should leverage cloud computing to create a remote workforce that does not require employees to commute to the office, an Irish journalist proposed in a column Thursday. A former tech CEO, Chris Horn, wrote in a column in the Irish Times that Ireland should take advantage of the growing investments in cloud computing in the country to ease traffic, reduce carbon emissions, and even, reduce the stress of the daily commute to work.IRISH TIMES

8. The managed services firm EdgeConneX has announced that it now offers Microsoft Azure ExpressRoute service through its Munich data center. Azure ExpressRoute acts as a digital on-ramp, allowing customers to connect to the cloud from their IT deployment. Previously, enterprises in Munich could only connect to Microsoft Azure via Frankfurt which is nearly 240 miles away, affecting performance. —  DATA ECONOMY

9. The digital infrastructure provider GPX Global Systems has opened its second data center in India, bringing the company’s total IT storage space in the Mumbai area to 105,000 square feet. The new 60,000 square-foot campus can serve multiple cloud carriers, has 16MW of power, and is equipped with three independent cooling systems to combat overheating in Mumbai’s hot climate. DATA CENTER DYNAMICS

10. The cloud computing arm of the Chinese e-commerce giant, Alibaba on Thursday announced a deal with India’s leading cloud distributor, ZNet Technologies of Mumbai, to distribute its IaaS, video-on-demand, email, content delivery network and other services. ZNet has 50 branches and service centers across the country, along with 9,000 partners.— SIFY

Jon Jeter has worked in journalism for nearly 25 years. He is the author of a book on global finance, and co-author of a book on American politics.


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