Salesforce and AWS announced an expansion of their on-going partnership that actually goes back to a $ 400 million 2016 infrastructure services agreement, and expanded last year to include data integration between the two companies. This year, Salesforce announced it will be offering AWS telephony and call transcription services with Amazon Connect as part of its Service Cloud call center solution.
“We have a strategic partnership with Amazon Web Services, which will allow customers to purchase Amazon Connect from us, and then it will be pre-integrated and out of the box to provide a full transcription of the call, and of course that’s alongside of an actual call recording of the call,” Bill Patterson, executive vice president for Service Cloud explained.
It’s worth noting that the company will be partnering with other telephony vendors as well, so that customers can choose the Amazon solution or another from Cisco, Avaya or Genesys, Patterson said.
These telephony partnerships fill in a gap in the Service Cloud call center offering, and give Salesforce direct access to the call itself. The telephony vendors will handle call transcription and hand that off to Salesforce, which can then use its intelligence layer called Einstein to “read” the transcript and offer the CSR next best actions in real time, something the company has been able to do with interactions from chat and other channels, but couldn’t do with voice.
“As this conversation evolves, the consumer is explaining what their problem is, and Einstein is [monitoring] that conversation. As the conversation gets to a critical mass, Einstein begins to understand what the content is about and suggests a specific solution to the agent,” Patterson said.
Salesforce will begin piloting this new Service Cloud capability in the spring with general availability expected next summer.
Only last week, Salesforce announced a major partnership with Microsoft to move Salesforce Marketing Cloud to Azure. These announcements show Salesforce will continue to use multiple cloud partners when it makes sense for the business. Today, it’s Amazon’s turn.
When Salesforce announced this week that it was moving Marketing Cloud to Microsoft Azure, it was easy to see this as another case of wacky enterprise partnerships. But there had to be sound business reasons why the partnership came together, rather than going with AWS or Google Cloud Platform, both of which are also Salesforce partners in other contexts.
If you ask Salesforce, it says it was ultimately because of compatibility with Microsoft SQL.
“Salesforce chose Azure because it is a trusted platform with a global footprint, multi-layered security approach, robust disaster recovery strategy with auto failover, automatic updates and more,” a Salesforce spokesperson told TechCrunch. “Marketing Cloud also has a long standing relationship with Microsoft SQL which makes the transition to SQL on Azure a natural decision.”
Except for the SQL part, Microsoft’s chief rivals at AWS and Google Cloud Platform also provide those benefits. In fact, each of those reasons cited by the spokesperson — with the exception of SQL — are all part of the general cloud infrastructure value proposition that all the major cloud vendors provide.
There’s probably more to it than simply compatibility. There is also a long-standing rivalry between the two companies, and why in spite of their competition, they continue to make deals like this in the spirit of co-opetition. We spoke to a few industry experts to get their take on the deal to find out why these two seeming rivals decided to come together.
Tony Byrne, founder and principal analyst at Real Story Group, thinks it could be related to the fact it’s a marketing tool and some customers may be wary about hosting their businesses on AWS while competing with Amazon on the retail side. This is a common argument for why retail customers in particular are more likely to go with Microsoft or Google over AWS.
“Salesforce Marketing Cloud tends to target B2C enterprises, so the choice of Azure makes sense in one context where some B2C firms are wary of Amazon for competitive reasons. But I’d also imagine there’s more to the decision than that,” Byrne said.
This move is part of Google’s overall investment in expanding the physical footprint of its data centers. Only a few days ago, after all, the company announced that, in the next two years, it would spend $ 3.3 billion on its data center presence in Europe alone.
Google Cloud currently operates 20 different regions with 61 availability zones. Warsaw, like most of Google’s regions, will feature three availability zones and launch with all the standard core Google Cloud services, including Compute Engine, App Engine, Google Kubernetes Engine, Cloud Bigtable, Cloud Spanner and BigQuery.
To launch the new region in Poland, Google is partnering with Domestic Cloud Provider (a.k.a. Chmury Krajowej, which itself is a joint venture of the Polish Development Fund and PKO Bank Polski). Domestic Cloud Provider (DCP) will become a Google Cloud reseller in the country and build managed services on top of Google’s infrastructure.
“Poland is in a period of rapid growth, is accelerating its digital transformation, and has become an international software engineering hub,” writes Google Cloud CEO Thomas Kurian. “The strategic partnership with DCP and the new Google Cloud region in Warsaw align with our commitment to boost Poland’s digital economy and will make it easier for Polish companies to build highly available, meaningful applications for their customers.”
Oracle has been complaining about the procurement process around the Pentagon’s $ 10 billion, decade-long JEDI cloud contract, even before the DoD opened requests for proposals last year. It went so far as to file a lawsuit in December, claiming a potential conflict of interest on the part of a procurement team member. Today, that case was dismissed in federal court.
In dismissing the case, Federal Claims Court Senior Judge Eric Bruggink ruled that the company had failed to prove a conflict in the procurement process, something the DOD’s own internal audits found in two separate investigations. Judge Bruggink ultimately agreed with the DoD’s findings:
We conclude as well that the contracting officer’s findings that an organizational conflict of interest does not exist and that individual conflicts of interest did not impact the procurement, were not arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law. Plaintiff’s motion for judgment on the administrative record is therefore denied.
The company previously had filed a failed protest with the Government Accountability Office (GAO), which also ruled that the procurement process was fair and didn’t favor any particular vendor. Oracle had claimed that the process was designed to favor cloud market leader AWS.
It’s worth noting that the employee in question was a former AWS employee. AWS joined the lawsuit as part of the legal process, stating at the time in the legal motion, “Oracle’s Complaint specifically alleges conflicts of interest involving AWS. Thus, AWS has direct and substantial economic interests at stake in this case, and its disposition clearly could impair those interests.”
Today’s ruling opens the door for the announcement of a winner of the $ 10 billion contract, as early as next month. The DoD previously announced that it had chosen Microsoft and Amazon as the two finalists for the winner-take-all bid.
Cloud gaming — however a company chooses to define that — is shaping up to be a big part of the next generation of consoles and other platforms. But Mario creator and Nintendo veteran Shigeru Miyamoto says his company won’t be so quick to jump on the bandwagon.
Speaking to shareholders at Nintendo’s annual general meeting, Miyamoto and other executives addressed a variety of issues, among them what some interpret as a failure to keep up with the state of the industry. Sony and Microsoft (together, amazingly) are about to lock horns with Google, Nvidia and others in the arena of game streaming, but Nintendo has announced no plans whatsoever regarding the powerful new technology.
As reported by GamesIndustry.biz, Miyamoto was unfazed by this allegation.
“We believe it is important to continue to use these diverse technical environments to make unique entertainment that could only have been made by Nintendo,” he said. “We have not fallen behind with either VR or network services… Because we don’t publicize this until we release a product, it may look like we’re falling behind.”
But although this hinted that Nintendo is working in this direction, Miyamoto didn’t sound convinced that cloud gaming was a home run.
“I think that cloud gaming will become more widespread in the future, but I have no doubt that there will continue to be games that are fun because they are running locally and not on the cloud,” he said.
The Nintendo focus on local multiplayer and complete offline single-player games is certainly emblematic of this point of view. And while Nintendo has been slow to adopt the latest gaming trends, it has shown that it can pull them off very well, indeed like no other, for example with the excellent Splatoon 2 and its constantly evolving seasons and events.
Nintendo President Shuntaro Furukawa said they see how gaming technology is evolving and that it’s important to “keep up with such changes,” but like Miyamoto made no indication that there was anything concrete on the way.
Instead, he indicated (again in true Nintendo style) that the company would reap the benefits of cloud gaming whether or not it took part in the practice.
“if these changes increase the worldwide gaming population, that will just give us more opportunities with our integrated hardware and software development approach to reach people worldwide with the unique entertainment that Nintendo can provide,” he said.
In other words, a rising tide lifts all boats, and if the others did the work to raise the water level, well, that’s their business.
The rumor on everyone’s mind after E3 is whether a new Switch or Switches are on the way. Naturally Furukawa demurred, saying that of course they were aware of speculation, but wouldn’t comment. However, he added: “It would spoil the surprise for consumers and is against the interests of our shareholders, so we are withholding any discussion.”
Of course a new Switch is on the way — that’s about as much as a confirmation anyone would be able to get from Furukawa or the other highly trained executives at Nintendo, even if the new hardware was coming out tomorrow. But at this rate it seems more likely that the new hardware will be timed to pull in buyers around the holidays — which may have the knock-on effect of taking the wind out of Microsoft and Sony’s sails (and sales) when they debut their next-generation consoles next year.
There is a tendency at any conference to get lost in the message. Spending several days immersed in any subject tends to do that. The purpose of such gatherings is, after all, to sell the company or technologies being featured.
Against the beautiful backdrop of the city of Barcelona last week, we got the full cloud native message at KubeCon and CloudNativeCon. The Cloud Native Computing Foundation (CNCF), which houses Kubernetes and related cloud native projects, had certainly honed the message along with the community who came to celebrate its five-year anniversary. The large crowds that wandered the long hallways of the Fira Gran Via conference center proved it was getting through, at least to a specific group.
Cloud native computing involves a combination of software containerization along with Kubernetes and a growing set of adjacent technologies to manage and understand those containers. It also involves the idea of breaking down applications into discrete parts known as microservices, which in turn leads to a continuous delivery model, where developers can create and deliver software more quickly and efficiently. At the center of all this is the notion of writing code once and being able to deliver it on any public cloud, or even on-prem. These approaches were front and center last week.
At five years old, many developers have embraced these concepts, but cloud native projects have reached a size and scale where they need to move beyond the early adopters and true believers and make their way deep into the enterprise. It turns out that it might be a bit harder for larger companies with hardened systems to make wholesale changes in the way they develop applications, just as it is difficult for large organizations to take on any type of substantive change.
Putting up stop signs
Extra Crunch offers members the opportunity to tune into conference calls led and moderated by the TechCrunch writers you read every day. This week, TechCrunch’s Frederic Lardinois and Ron Miller discuss major announcements that came out of the Linux Foundation’s European KubeCon/CloudNativeCon conference and discuss the future of Kubernetes and cloud-native technologies.
Nearly doubling in size year-over-year, this year’s KubeCon conference brought big news and big players, with major announcements coming from some of the world’s largest software vendors including Google, AWS, Microsoft, Red Hat, and more. Frederic and Ron discuss how the Kubernetes project grew to such significant scale and which new initiatives in cloud-native development show the most promise from both a developer and enterprise perspective.
“This ecosystem starts sprawling, and we’ve got everything from security companies to service mesh companies to storage companies. Everybody is here. The whole hall is full of them. Sometimes it’s hard to distinguish between them because there are so many competing start-ups at this point.
I’m pretty sure we’re going to see a consolidation in the next six months or so where some of the bigger players, maybe Oracle, maybe VMware, will start buying some of these smaller companies. And I’m sure the show floor will look quite different about a year from now. All the big guys are here because they’re all trying to figure out what’s next.”
Frederic and Ron also dive deeper into the startup ecosystem rapidly developing around Kubernetes and other cloud-native technologies and offer their take on what areas of opportunity may prove to be most promising for new startups and founders down the road.
For access to the full transcription and the call audio, and for the opportunity to participate in future conference calls, become a member of Extra Crunch. Learn more and try it for free.
Oracle was founded in 1977. While it’s not exactly IBM or GE, which date back to the late 19th and early 20th centuries respectively, it is old enough to be experiencing a fair bit of disruption in its own right. For a good part of its existence, it sold databases to some of the biggest companies in the world. But today, as the market changes and shifts from on-prem data centers to the cloud, how does a company like Oracle make that transition?
Of course, Oracle has been making the shift to the cloud for the last several years, but it would be fair to say that it came late. Plus, it takes more than building some data centers and pushing out some products to change a company the size of Oracle. The company leadership recognizes this, and has been thinking at the highest levels of the organization about how to, from a cultural and business perspective, successfully transform into a cloud company.
To that end, Oracle has opened five innovation hubs over the last several years, with locations in Austin, Texas; Reston, Va.; Burlington, Mass.; Bangalore, India and Santa Monica, Calif. What are these centers hoping to achieve, and how will it extend to the rest of the company the lessons learned? Those are big questions Oracle must answer to make some headway in the cloud market.
Understanding the problem
Oracle seems to understand it has to do something different to change market perception and its flagging market position. Synergy Research, a firm that tracks cloud market share, reports that the company is struggling.
“For cloud infrastructure services (IaaS, PaaS, hosted private cloud services) — Oracle has a 2 percent share,” John Dinsdale, chief analyst and managing director at Synergy told TechCrunch. He added, “It is a top-10 player, but it is nowhere near the scale of the leading cloud providers; and its market share has been steadily eroding.”
The news is a bit better when it comes SaaS. “Along with SAP, Oracle is one of the leaders in the ERP segment. But enterprise SaaS is much broader than ERP and across all of enterprise SaaS it is the No. 4-ranked provider behind Microsoft, Salesforce and Adobe. Oracle worldwide market share in Q4 was 6 percent,” Dinsdale said.
The company knows that it will take a vast shift to change from an organization that mostly sold software licenses and maintenance agreements. It pushed those hard, sometimes so hard that it left IT pros with a sour taste in their mouths. Today, with the cloud, the selling landscape has changed dramatically to a partnership model. The company knows that it must change, too. The question is, how?
That will take an entirely new approach to product development, sales and marketing; and the innovation hubs have become a kind of laboratory where engineers can experiment with more focused projects, and learn to present their ideas with goal of showing instead of telling customers what they can do.
And the young shall lead
One way to change the culture is to infuse it with fresh-thinking, smart young people, and that’s what Oracle is attempting to do with these centers, where they are hiring youthful engineers, many right out of college, to lead the change with the help of more seasoned Oracle executives.
They are looking for ways to rethink Oracle’s cloud products, to pull the services together into packages of useful tools that helped solve specific business problems, from prescription opioid abuse to predicting avocado yields. The idea isn’t just to have some section of the company where people work on dream projects. They want them to relate to real business problems that results, eventually, in actual sales and measurable results.
Hamza Jahangir, group vice president for the cloud solution hubs at Oracle, says they look for people who want to dig into new solutions, but they want a practical streak in their innovation hub hires. “We don’t want just tinkerers. If the only problem you’re solving is that of your own boredom, that’s not the type of person we are looking for,” he said.
The idea of the innovation center actually began with co-CEO Mark Hurd, according to Jahangir. He had been working for several years to change the nature of the sales force, the one that had a reputation of strong-arming IT pros, with a new generation, by hiring people right out of college with a fresh approach.
Hurd didn’t want to stop with sales, though. He began looking at taking that same idea of hiring younger employees to drive that cultural shift in engineering, too. “About two years ago, Mark challenged us to think about how can we change the customer-facing tech workforce as the business model was moving to the cloud,” Jahangir said.
Hurd gave him some budget to open the first two centers in Austin and Reston and he began experimenting, trying to find the right kinds of employees and projects to work on. The funding came without of a lot of strings or conditions associated with it. Hurd wanted to see what could happen if they unleashed a new generation of workers and gave them a certain amount of freedom to work differently than the traditional way of working at Oracle.
Jahangir was very frank when it came to assessing customer’s expectations around Oracle moving to the cloud. There has been a lot of skepticism, and part of the reason for the innovation centers was to find practical solutions that could show customers that they actually had modern approaches to computing, given a chance.
The general customer stance has been, “We don’t believe you have anything real, and we need to see true value realized by us before we pay you any money,” he said. That took a fundamental shift to focusing on actual solutions. It started with the premise that the customers shouldn’t believe any of the marketing stuff. Instead, it would show them.
“Don’t bother watching a PowerPoint presentation. Ask us to show you real solutions and use cases where we have solved real material problems — and then we can have a discussion.”
Even chairman and company founder Larry Ellison recognizes the relationship and selling model needed to change as the company moves to the cloud. Jahangir relayed something he said in a recent internal meeting, “In the cloud we are now no longer selling giant monolithic software. Instead we are selling small bites of the apple. The relationship between the vendor and the buyer is becoming more like a consumer model.” That in turn requires a new way of selling and delivering solutions, precisely what they are trying to figure out at the innovation hubs.
Putting the idea to work
Once you have a new way of thinking, you have to put it to work, and as the company has created these various hubs, that has been the approach. As an example, one that isn’t necessarily original, but that puts Oracle features together in a practical way, is the connected patient. The patient wears a Fitbit-like monitor and uses a smart blood pressure cuff and a smart pill box.
The patient can then monitor his or her own health with these tools in a consolidated mobile application that pulls this data together for them using the Internet of Things cloud service, Oracle Mobile Cloud and Oracle Integration Cloud. What’s more, that information gets shared with the patient’s pharmacy and doctor, who can monitor the patient’s health and get warnings when there is a serious issue, such as dangerously high blood pressure.
Another project involved a partnership with Waypoint Robotics, where they demonstrated a robot that worked alongside human workers. The humans interacted with the robots, but the robot moved the goods from workstation to workstation, acting as a quality control agent along the way. If it found defects or problems, it communicated that to the worker via a screen on the side of the unit, and to the cloud. Every interaction between the humans, goods and robot was updated in the Oracle cloud.
One other project worked with farmers and distributors to help stores stay stocked with avocados, surely as good a Gen Z project as you are likely to find. The tool looks at weather data, historical sales and information coming from sensors at the farm, and it combines all of that data to make predictions about avocado yields, making use of Oracle Autonomous Data Warehouse, Oracle Analytics Cloud and other services from the Oracle cloud stack.
Moving beyond the hubs
This type of innovation hub has become popular in recent years as a way to help stave off disruption, and Oracle’s approach is actually in line with this trend. While companies sometimes isolate these innovation hubs to protect them from negativity and naysayers in an organization, leaving them isolated often prevents the lessons learned from being applied to the broader organization at large, essentially defeating the very purpose of creating them in the first place.
Jahangir says that they are attempting to avoid that problem by meeting with others in the company and sharing their learnings and the kinds of metrics that they use in the innovation center to measure success, which might be different from the rest of the company.
He says to put Oracle on the customer agenda, they have to move the conversation from religious battles, as he calls how people support or condemn tech from certain companies. “We have to overcome religious battles and perceptions. I don’t like to fight religion with more religion. We need to step out of that conversation. The best way we have seen for engaging developer community is to show them how to build really cool things, then we can hire developers to do that, and showcase that to the community to show that it’s not just lip service.”
The trick will be doing that, and perhaps the innovation centers will help. As of today, the company is not sharing its cloud revenue, so it’s hard to measure just how well this is helping contribute to the overall success of the company. But Oracle clearly has a lot of work to do to change the perception of the enterprise buyer about its cloud products and services, and to increase its share of the growing cloud pie. It hopes these innovations hubs will lead the way to doing that.
Jahangir recognizes that he has to constantly keep adjusting the approach. “The hub model is still maturing. We are finding and solving new problems where we need new tooling and engagement models in the organization. We are still learning and evolving,” he said.
Google Cloud already powers some of the world’s premier companies and startups, and now it’s poised to put even more pressure on cloud competitors like AWS with its newly-released products and services. TechCrunch’s Frederic Lardinois will be on the ground at the event, and Ron Miller will be covering from afar. Thursday at 10:00 am PT, Frederic and Ron will be sharing what they saw and what it all means with Extra Crunch members on a conference call.
Tune in to dig into what happened onstage and off and ask Frederic and Ron any and all things cloud or enterprise.
To listen to this and all future conference calls, become a member of Extra Crunch. Learn more and try it for free.
Today’s startups have a distinct advantage when it comes to launching a company because of the public cloud. You don’t have to build infrastructure or worry about what happens when you scale too quickly. The cloud vendors take care of all that for you.
But last month when Pinterest announced its IPO, the company’s cloud spend raised eyebrows. You see, the company is spending $ 750 million a year on cloud services, more specifically for AWS. When your business is primarily focused on photos and video, and needs to scale at a regular basis, that bill is going to be high.
That price tag prompted Erica Joy, a Microsoft engineer, to publish this tweet and start a little internal debate here at TechCrunch. Startups, after all, have a dog in this fight, and it’s worth exploring if the cloud is helping feed the startup ecosystem, or sending your bills soaring, as they have with Pinterest.
after discussion with some folks about this article and the generally ridiculous amount of money startups pay for aws, i am wondering if there is an effective, easy to use, open source tool that helps startups reduce aws spend. https://t.co/GBh40b4UOH
— EricaJoy (@EricaJoy) March 25, 2019
For starters, it’s worth pointing out that Ms. Joy works for Microsoft, which just happens to be a primary competitor of Amazon’s in the cloud business. Regardless of her personal feelings on the matter, I’m sure Microsoft would be more than happy to take over that $ 750 million bill from Amazon. It’s a nice chunk of business; but all that aside, do startups benefit from having access to cloud vendors?