IBM and open-source software provider Red Hat announced that they have reached an acquisition agreement. Marking what will be the third-largest tech acquisition in U.S. history, IBM will purchase all issued and outstanding common shares of Red Hat in a deal valued at approximately $34 billion. Red Hat is the largest distributor of open-source operating system Linux. The deal reflects IBM’s ambitions for a piece of the fast-growing cloud computing market. “The acquisition of Red Hat is a game-changer,” said Ginni Rometty, IBM chair, president and chief exec. “It changes everything about the cloud market.” Continue reading IBM Is Buying Red Hat, Aims to Be Top Hybrid Cloud Provider

After decades of unreliable profits, Amazon has had four consecutive quarters with profits over $1 billion, and a net income of $2.9 billion in Q3. Although the numbers exceeded analysts’ expectations, the e-commerce giant also revealed that revenue in its core retail business was below expectations, with sales up 29 percent to $56.6 billion, and sales in its online store rose only 11 percent over the last year, half the pace of a year ago. As a result, discontent investors recently dropped shares 7 percent in aftermarket trading. Continue reading Amazon Seeks Efficiency While Investing in New Businesses

Microsoft’s major investment in the cloud is beginning to pay off. In the last several quarters, this sector has grown so fast that the company’s market cap has soared to about $785 billion. Now, Microsoft reported that the results of its latest quarter have exceeded analyst expectations. When Satya Nadella became chief executive, Microsoft’s revenue largely came from marketing its Windows operating system on personal computers. Nadella turned the company towards cloud computing, with Azure as its core offering. Continue reading Microsoft Develops Hybrid Cloud Solution Strategy with Azure

Los Angeles-based OTOY, a company that has created software used for visual effects in projects such as “Westworld” and “The Avengers,” also launched a blockchain- and cryptocurrency-based rendering platform called RNDR to help other content creators harness the power of thousands of graphics processing units (GPUs). OTOY’s strategy is to gather a group of computer owners who can share their GPUs in the cloud in a decentralized way, and thus trade GPU power among members to accomplish data-intense imagery. Continue reading Blockchain-Based RNDR Harnesses Power of 14,000 GPUs

As we reported last week, Bloomberg published a story claiming that China had secretly installed microchips on motherboards built by Supermicro that were used in data center servers of companies such as Apple and Amazon. In the first official response from the U.S. government, Homeland Security issued a statement indicating that it has “no reason to doubt” the denials issued by Apple, Amazon and Supermicro in the wake of the report. The Homeland Security statement is similar to comments released by the U.K.’s National Cyber Security Centre. Continue reading Government Backs Apple and Amazon Denials of Spy Chips

According to a Bloomberg Businessweek cover story today, Chinese spies infiltrated nearly 30 U.S. companies including Amazon and Apple by embedding tiny chips into servers in the technology supply chain. In 2015, malicious microchips were reportedly embedded in servers bound for U.S. companies, which resulted in compromised software used in numerous hardware devices. While the report cites former government officials and “senior insiders” at Apple, both Amazon and Apple — as well as motherboard manufacturer Supermicro and China’s Ministry of Foreign Affairs — have firmly disputed the findings. Continue reading China Reportedly Used Tiny Chips to Hack U.S. Companies

Satellite company Iridium Communications and Amazon Web Services inked a partnership to develop CloudConnect, a global network to enable Internet of Things (IoT) applications. According to Iridium chief executive Matt Desch, terrestrial networks only cover 10 to 20 percent of the earth, whereas the cloud platform, via satellite, can cover everything. The goal initially is to focus on areas without cellular technology. CloudConnect is slated to launch in 2019 as the first and only satellite provider connected to AWS. Continue reading Iridium and AWS Partner to Offer Global Satellite Connection

According to sources, Amazon is contemplating aggressive growth for its new Amazon Go cashierless stores. With plans to open as many as 3,000 new stores, Amazon would rival 7-Eleven, Subway, Panera Bread and mom-and-pop shops where people go to get a quick meal. Chief executive officer Jeff Bezos sees the move as a way to reduce time to buy a meal in busy cities and “reinvent” the brick-and-mortar store experience but hasn’t settled on the best format: a store for prepared foods and limited groceries or one that offers speedy meals. Continue reading Amazon Considers Opening 3,000 Cashierless Stores by 2021

The public cloud is significantly impacting media by moving information technology into a world of utility where compute and storage are available as needed — easy to implement and decommission. It provides a flexible infrastructure for a media-centric world increasingly based on analytics where experimentation is the foundation of digital transformation. The media industry is changing — from the way content is produced and managed to the methods used to protect, optimize, distribute and analyze that content. These changes to the value chain have created enormous pressures (and opportunities) for creative professionals. Continue reading Hybrid Cloud Becoming an Effective Tool for Media Analytics

Amazon’s shares rose to $2,050.50 on Tuesday, pushing the company’s value to over $1 trillion, making it the second U.S. firm to reach that pinnacle since Apple did so early last month. By the end of the day, shares fell to $2,039.51, below the $1 trillion mark. Amazon, which employs more than 550,000 people, generates more than $178 billion in annual revenue and captures 49 cents from every dollar spent on e-commerce. To continue its growth, Amazon is now offering its local Indian website and apps available in Hindi. Continue reading Amazon Briefly Worth $1 Trillion, Targets India With Hindi Site

In June, in a letter to Amazon chief executive Jeff Bezos, almost 19 groups of Amazon shareholders expressed concern about the company’s cloud-based facial recognition system Rekognition being provided to law enforcement in Orlando, Florida and the Washington County (Oregon) Sheriff’s Office. They joined forces with Amazon employees, the ACLU, academics and more than 70 other groups to protest the decision. After the ACLU showed how Rekognition can err in IDing people, three Democratic lawmakers joined the chorus. Continue reading Amazon Makes the Case That Rekognition Is a Force for Good

Amazon has thus far dominated the cloud computing business, but Microsoft is now a strong No. 2. The latter, in a quarterly financial report, indicated that its Azure cloud computing unit grew 89 percent over the same period a year ago and demonstrated growth in other cloud offerings. Synergy Research Group reports that the overall “core cloud business” is valued at $60 billion a year, having grown by 50 percent in Q1 2018. Amazon is responsible for a 33 percent share, which had held steady since the end of 2015. Continue reading Microsoft Azure Grows to the No. 2 Spot in Cloud Computing

To help its Amazon Web Services customers keep their data secure, the AWS Automated Reasoning Group is beta-testing two new tools, Zelkova and Tiros, which analyze security configurations, provide automated feedback on various set-ups and help administrators avoid mistakes that could endanger their data. Tiros focuses on checking for “unexpected access from the open Internet,” and Zelkova aids developers in understanding how permissive their setups are compared to existing infrastructure. Continue reading Amazon Web Services Testing Two ‘Provable’ Security Tools

The American Civil Liberties Union (ACLU), leading more than 24 other civil rights organizations, has asked Amazon to stop selling Rekognition, its facial/object recognition system, to law enforcement. Amazon introduced this online service in late 2016, offering Rekognition at a low cost through Amazon Web Services. Pitching it to law enforcement with the idea it could be used to assist in criminal investigations, Amazon signed on the Orlando Police Department in Florida and Washington County Sheriff’s Office in Oregon. Continue reading ACLU Has Concerns Regarding AWS Facial Recognition Tool

Amazon announced that it plans to raise the price of its annual Prime membership from $99 to $119 in the U.S. The move marks the first increase since 2014 when the shipping and entertainment membership program cost $79 per year. New subscribers will pay $119 a year starting May 11, while the new fee will apply to current members beginning with renewals on June 16. Amazon CEO Jeff Bezos recently revealed that Prime has more than 100 million global members. The company surprised investors this week with news that it had more than doubled its quarterly profits to $1.6 billion. Continue reading Amazon Will Raise the Price of Prime Membership Next Month