Author: Jack Pearson

Amazon ditches Oracle in favour of its own cloud service

Posted on by Jack Pearson

Amazon has migrated 75 petabytes of internal data – previously stored on nearly 7,500 Oracle databases – back to its own servers. On October 15, the tech giant announced that it will no longer use Oracle to store its databases and will instead use its in-house cloud-computing service, Amazon Web Services (AWS).

In an official company blog post, AWS Chief Evangelist Jeff Barr revealed that the database migration had been completed after several years of work: “I am happy to report that this database migration effort is now complete. Amazon’s consumer business just turned off its final Oracle database.”

Cost, performance and a reduction in administrative overheads were cited as the main motivations behind Amazon’s database migration

In total, more than 100 consumer services were involved in the migration effort, including Amazon Prime, Alexa and Kindle. Cost, performance and a reduction in administrative overheads were cited as the main motivations behind the move. Some third-party applications will remain connected to Oracle.

“Over the years, we realised that we were spending too much time managing and scaling thousands of legacy Oracle databases,” Barr wrote. “Instead of focusing on high-value differentiated work, our database administrators spent a lot of time simply keeping the lights on while transaction rates climbed and the overall amount of stored data mounted.”

Each team at the company was tasked with moving an Oracle database to an AWS alternative, such as Amazon DynamoDB, Amazon Aurora, Amazon Relational Database Service and Amazon Redshift. The company added that each team was given “the freedom to choose the purpose-built AWS database service that best fit their needs”.

Amazon’s move away from Oracle will come as a crushing blow to the cloud-computing firm. Amazon was a huge client for Oracle, and there are fears that its exit could lead to further departures elsewhere in the business.

Boeing partners with Porsche to develop electric flying taxi

Posted on by Jack Pearson

On October 10, German sports car brand Porsche announced it was working with US aircraft-maker Boeing to develop a prototype electric flying taxi. Porsche is the latest company to join the increasingly competitive market of air mobility, predicted to be worth $86.83bn by 2035.

Boeing has already developed a prototype electric air vehicle through its subsidiary, Aurora Flight Sciences

As part of the deal, Boeing and Porsche will put together an international team to analyse the market potential for premium aerial vehicles. The companies will also explore their possible use in highly populated urban areas.

“In the longer term, this could mean moving into the third dimension of travel,” said Detlev von Platen, member of the executive board for sales and marketing at Porsche. “We are combining the strengths of two leading global companies to address a potential key market segment of the future.”

Boeing has already developed a prototype electric air vehicle through its subsidiary, Aurora Flight Sciences. At the start of this year, the autonomous vehicle completed its first successful test flight in Manassas, Virginia.

However, Boeing is far from the only aircraft maker diving into this emerging industry. Last year, its main rival Airbus successfully flew its autonomous air taxi for the first time. Also vying for the top spot are a number of start-ups, such as Volocopter and AeroMobil, as well as automakers like Hyundai, which recently launched an air mobility division dedicated to developing the technology.

The Porsche-Boeing partnership comes at a critical juncture for Boeing and Volkswagen, Porsche’s parent company. The German car manufacturer is still dealing with the aftermath of its 2015 emissions scandal, while Boeing’s reputation was tarnished after two of its 737 MAX planes were involved in fatal crashes.

By moving into this up-and-coming space, the two firms are no doubt hoping to put the past behind them. Their joint venture also suggests that the age of urban air travel could be just around the corner. Porsche’s own consulting group forecasts that urban air transportation is likely to increase significantly after 2025. Finally, it seems like the flying car market is beginning to take off.

Google to deliver air pollution detection tool to European cities

Posted on by Jack Pearson

On October 10, Google announced that an online tool used to monitor air pollution and carbon emission levels will be made available across a selection of European cities. It will use a vast data network to collect, transport and add data on Google Maps and combines what it gathers with publicly available information about emissions.

According to UN Habitat, cities produce over 60 percent of greenhouse gas emissions, and some 3.8 million premature deaths annually are attributed to outdoor pollution

The tool – known as the Environmental Insights Explorer (EIE) – will be offered to Copenhagen, Birmingham, Manchester, Wolverhampton, Coventry and Dublin. It was previously only available in the US. The search engine company intends to roll out EIE to more cities around the world, and any city resident can nominate their city through an online form.

Director and founder of the Google Earth Outreach programme, Rebecca Moore, wrote in an official blog post that the tool will help garner “new insights, deeper research and more effective climate action”. The EIE dashboard is designed to help cities find the most effective ways to reduce emissions, such as introducing more bicycle lanes or solar panels. It offers data across four categories: building emissions, transport emissions, general emissions and solar potential.

As part of a different project, dubbed Project Air View, Copenhagen will receive what Google describes as hyperlocal, street-level air-quality data, as part of EIE Labs. An official of the city of Copenhagen told the BBC: “With this new data, the city of Copenhagen can see for the first time pollutant levels of air quality at the ultrafine particle level on the roads in the city centre, as well as leading into the city centre, that are contributing the most to the city’s air pollution problems.”

Fighting air pollution in cities has become a central policy challenge for leaders around the world. According to UN Habitat, cities produce over 60 percent of greenhouse gas emissions, and some 3.8 million premature deaths annually are attributed to outdoor pollution. While Google’s new technology will not solve this pollution crisis, it will allow leaders to better locate and target the worst-affected areas.

Blizzard bans leading esports player for “liberate Hong Kong” comments

Posted on by Jack Pearson

Blizzard has placed a 12-month ban on a Hong-Kong-based professional gamer who voiced support for Hong Kong’s protestors during a post-match interview. Chung Ng Wai, who plays under the name Blitzchung, had just won a match at the Hearthstone grandmasters tournament when he appeared for his interview wearing a gas mask – similar to those worn by protestors – and said: “Liberate Hong Kong. Revolution of our age.”

Two inscriptions on a statue outside Blizzard’s HQ in California, which read ‘think globally’ and ‘every voice matters’, were covered up by members of the Blizzard team

Hong Kong has been in a state of civil unrest for more than four months, with millions of protestors calling for sovereignty from mainland China. In a statement, Blitzchung said he felt it was his “duty to say something about the issue”. He is one of the top players of Hearthstone, Blizzard’s popular digital card game, in the Asia-Pacific region.

Blizzard said the ban was for breaking tournament rules to not offend people or damage the company’s image, but many have accused the US firm of bowing to pressure from China. The company’s shares dropped 2.31 percent on Tuesday and the hashtag ‘BoycottBlizzard’ was trending among Twitter’s gaming community. US senators have also come out to condemn the decision. Senator Marco Rubio tweeted: “Recognize what’s happening here. People who don’t live in #China must either self-censor or face dismissal & suspensions.”

Even some of Blizzard’s employees appear to reject the decision. Two inscriptions on a statue outside Blizzard’s HQ in California, which read ‘think globally’ and ‘every voice matters’, were covered up by members of the Blizzard team to symbolise what many see as the company’s betrayal of its core values.

Blizzard is one of a growing number of multinational companies to become embroiled in Hong Kong’s political crisis. North America’s basketball league, the NBA, lost many of its major Chinese sponsors after its general manager Daryl Morey wrote in a since-deleted tweet: “Stand with Hong Kong.” Apple has also come under attack from the Chinese state media for hosting a mapping app commonly used by Hong Kong protestors.

How connectivity can help airlines cope with rising fuel costs

Posted on by Jack Pearson

For the commercial aviation industry, consumers must come first. This makes providing an efficient, comfortable and affordable flight crucial, which can be problematic when airlines need to make up for unexpected delays as the pilot will often need to accelerate during the flight to make up for lost time. However, doing so burns more fuel and ultimately costs the airline money, as well as increasing a flight’s environmental impact.

According to the International Air Transport Association, by the end of 2019, global airlines are expected to have spent a quarter of their overall costs on fuel. With prices fluctuating, airlines must look for new ways to manage fuel costs while maintaining a high calibre of service for their customers.

Connectivity has transformed the way airlines operate and forward-thinking operators are taking clear strides to optimise fuel use, reduce costs and ultimately provide a better passenger experience

One such measure is improved airline connectivity. Fast, reliable and secure in-flight Wi-Fi that’s available anywhere around the globe has made air travel much more efficient and enjoyable for passengers.

Connectivity has also been hugely beneficial to professionals in the airline industry as it helps cut costs and provides the means to deliver a more efficient and comfortable service, along with improved data analytics and machine learning.

An enormous amount of data can be gathered during a flight, such as distance travelled, wind speed and fuel consumption – this can be leveraged to help airlines make better tactical decisions to optimise fuel usage.

Fuel efficiency solutions are typically made available using subscription models and comprise four key parts: data collection, data quality assurance, data analysis and communication. A quality service will collect, monitor and analyse data from numerous airlines and compare the findings with historic data to identify ways to reduce fuel consumption in real time. This allows pilots to take action during a flight, as well to help airlines reduce operational costs on a broader scale.

These services work in three key ways. First, they optimise fuel usage by leveraging data analytics. This enables airlines to more accurately calculate how much fuel a flight will require – these calculations were often based on estimates previously, resulting in wasted fuel and money. Users of the software have improved their fuel efficiency and have seen annual fuel savings of up to five percent. Given the vast quantity of fuel used by airlines, savings of just a few percent can make a huge difference to an airline’s operational costs.

In addition, pilots using fuel efficiency solutions can more easily identify the most fuel-efficient flight plans. Pilots can review previous flight paths in real time and find alternatives, enabling them to take the most direct route and improve flight efficiency. Airline operators can also analyse flight path data to identify where and when large amounts of fuel are being used and to make efficiency-driven adjustments to the airline’s flight plans.

Lastly, these services not only offer information about planes and their flight paths, but also about airports. Pilots are able to make strategic decisions when taking off or landing to reduce fuel waste, such as using a single engine to taxi out to the runway or selecting a more direct path as they come into land.

Airline operators will never be able to predict exactly how fuel prices will behave. However, they can use software to ensure they are consuming fuel as efficiently as possible, alleviating some of the pressure that comes with rising fuel costs. Connectivity has transformed the way airlines operate and forward-thinking operators are taking clear strides to optimise fuel use, reduce costs and ultimately provide a better passenger experience.

Indian hotel start-up Oyo to raise $1.5bn in latest round of funding

Posted on by Jack Pearson

On October 7, Oyo Rooms, India’s largest budget lodging start-up, confirmed plans to raise an additional $1.5bn as part of its Series F funding round. Its founder and CEO, Ritesh Agarwal, will spend $700m to buy new shares in the company. Existing investors, including SoftBank, Lightspeed and Sequoia India, will contribute to the rest of the funding round, bringing the start-up’s valuation to $10bn.

Since Oyo was founded in 2013, it has grown into India’s second-most valuable start-up and one of the world’s largest hotel chains

Since Oyo was founded in 2013, it has grown into India’s second-most valuable start-up and one of the world’s largest hotel chains. It currently manages 1.2 million rooms in more than 80 countries. This latest funding round will help the company strengthen its presence in the US, Oyo’s fastest-growing market, and boost its holiday rentals business in Europe.

“The continued support of our investors like SoftBank Vision Fund, Lightspeed and Sequoia Capital is a testament to the love, trust and relentless support of our asset owners and customers,” Agarwal said in a statement.

Oyo’s continued growth will bring some comfort to SoftBank, after WeWork – in which it was a majority shareholder – filed to withdraw its IPO earlier this month.

However, the Indian start-up is in some ways reminiscent of the now-disgraced property company. Like WeWork, Oyo has yet to turn a profit. On top of this, Agarwal’s push to raise his stake in the company – almost unheard of in the Indian start-up sector – mirrors the behaviour of Adam Neumann, WeWork’s founder and former CEO, who shareholders accused of exerting too much influence within the company.

Oyo’s success has also sparked a backlash among hotel operators in India. The start-up has faced criticism for driving down room rates in the country at a time when economic growth is slowing. Moreover, Indian hotel operators partnered with the brand have accused it of exorbitant fee increases.

In September, two hoteliers in the state of Karnataka filed police complaints that the company was deceitfully increasing commissions, accusing Agarwal of fraud. Oyo has denied the allegations, but such damning indictments may continue to haunt the company as it looks to expand globally.

WeWork’s bond price falls sharply after withdrawing its IPO 

Posted on by Jack Pearson

On September 30, a week after its controversial founder Adam Neumann was ousted as CEO, WeWork’s high-yield bond price dropped to a record low.

In just over six weeks, the company has experienced a painful fall from grace. Once the US’ most highly valued tech start-up, with a valuation of $47bn, the company quickly became steeped in scandal after investors raised concerns about its corporate governance and long-term financial viability. Although WeWork’s revenue doubled to almost $1.8bn in 2018, its losses also doubled to over $1.9bn.

Despite what critics were saying, the company had remained hopeful that it would still be able to spur investor interest. But it was forced to admit defeat after its possible valuation dropped to $10bn and its main investor, SoftBank, began putting pressure on the company.

Nonetheless, WeWork’s newly appointed co-CEOs Artie Minson and Sebastian Gunningham claim the company will pursue another IPO later down the line. “We are as committed as ever to serving our members, enterprise customers, landlord partners, employees and shareholders. We have every intention to operate WeWork as a public company and look forward to revisiting the public equity markets in the future,” they said in a statement.

WeWork quickly became steeped in scandal after investors raised concerns about its corporate governance and long-term financial viability

Withdrawing the IPO means WeWork will now need to look for alternative funding, since its $6bn loan deal with banks depended on a share sale of at least $3bn. It is currently in talks to renegotiate a $1.5bn injection from SoftBank. WeWork is also expected to cut back its workforce and rein in its expansion plans as it looks for new funding.

WeWork’s failed IPO comes during a difficult period for start-ups attempting to go public. Last week, entertainment and talent company Endeavour shelved its IPO, while shares in the fitness start-up Peloton fell by seven percent in their Wall Street debut.

Digital banking app Revolut to hire 3,500 staff in global push

Posted on by Jack Pearson

The UK digital banking app Revolut is expanding into 24 new markets and hiring 3,500 new staff as part of a deal with payments firm Visa, the two companies announced on September 30. The neobank plans to create a presence in eight new countries, including Japan, Brazil, Russia and the US, by the end of this year. It also hopes to enter other Latin American and Asian markets next year.

Since its launch in 2015, Revolut has grown astronomically and now serves more than eight million customers

Speaking with Reuters, Revolut’s chief executive and founder Nikolay Storonsky said the fintech firm could double or triple its customer base over the next year thanks to this global push. However, the expansion is still subject to Revolut acquiring the necessary regulatory approvals.

Since its launch in 2015, the challenger bank has grown astronomically and now serves more than eight million customers. However, despite Revolut’s success, it hasn’t always been smooth sailing for the fintech company: there have been numerous reports in the media describing Revolut’s toxic work culture and high employee churn rate. In addition, the UK’s financial watchdog, the Financial Conduct Authority, made enquiries into the company after a whistleblower said anti-money-laundering checks were not being properly applied in some cases. The company, speaking to the BBC, denied these claims.

According to research released by Accenture, digital banks are expected to amass 35 million customers around the world next year. However, many of the businesses in this space are still struggling to turn a profit, with the average digital bank losing £9 ($11) per customer on average. This is in part because most customers tend not to use these platforms as their main banks; Storonsky told Reuters that the average Revolut customer only has around €1,000 ($1,090) in their account.

Incumbent banks are also investing more in their digital platforms, which poses another threat to neobanks. Although Revolut is sure to boost its customer acquisition through this latest expansion, whether it can become profitable in the long term remains unclear.

Future-proofing convenience: how retailers can thrive in the on-demand economy

Posted on by Jack Pearson

The retail landscape is undergoing a seismic shift, driven by rapidly changing customer expectations. The consumers of today are only a few taps away from an assortment of on-demand products and services, and they expect their purchases to be adaptable to their needs – with fast delivery.

These expectations are forcing retailers to change how they operate and become more agile. To stay competitive, retailers must deliver an improved experience. However, innovating has its risks: without the right strategy, a retailer’s investment in new technology will not result in a profitable return. To help drive real value from their investments, retailers must consider a number of actions, including the use of artificial intelligence (AI), developing and utilising insights-based decision-making and addressing last-mile delivery challenges.

Deploying AI
Capgemini’s report, Building the Retail Superstar: How unleashing AI across functions offers a multibillion-dollar opportunity, found that 89 percent of retailers are hoping to deploy highly complex AI to provide great benefits. This overly ambitious approach can cause problems without the right level of data maturity within the organisation. Projects of this nature can be difficult to scale up to wider use, are likely to fail and can result in wasted time and investment.

On the other hand, less complex use cases have a better chance of reaching full-scale deployment, while also allowing an organisation to develop its data capabilities to pave the way for more complex use cases in the future. Examples of less complex use cases that provide quick returns include deploying online carts and chatbots – powered by machine learning – to provide personalised recommendations for customers shopping online.

Insights-based decisioning
While many retailers are capable of tracking fluctuations in customer purchasing, they are often unable to pinpoint which variables influence these changes and, more critically, when such shifts may occur in the future. By considering a more robust set of data inputs and leveraging AI technology to analyse these disparate sources, it is possible for organisations to generate truly actionable insights about the market, customer behaviour or their own business operations.

In the on-demand economy, insights-based decision-making – accomplished by leveraging data analytics to improve business planning – holds great promise for anticipating market shifts more accurately, better understanding business dynamics, predicting customer behaviour and managing risk. This process helps organisations reap the rewards of a fast-paced and uncertain environment, while carrying relatively little risk. By mining data, leveraging cutting-edge analytics and partnering with a proven leader in this field, it is possible for retailers to identify the opportunities that will deliver the most value to their business.

While many retailers are capable of tracking fluctuations in customer purchasing, they are often unable to pinpoint which variables influence these changes

Last-mile delivery challenges
Additional research by Capgemini found that the 97 percent of retailers feel they would not be able to sustain free shipping unless they see a reduction in delivery costs through automation. The same report found that 43 percent of supply chain executives believe there is a lack of efficiency in online order fulfilment; parcelling and delivery are the major hurdles to implementing last-mile delivery solutions.

For retailers with significant store footprints and high delivery volumes, automation is a critical requirement to bringing down costs. With warehouses and sorting representing one-third of supply-chain costs, there is a significant opportunity to reduce costs through automation – for example, it can reduce fulfilment errors. When items are left out of an order by mistake, multiple packages have to be sent out to remedy the error, increasing costs and decreasing customer satisfaction. Returns can also be processed using the same automated systems. An example of truly effective automation is the automated warehouse at Ocado, a UK-based online supermarket: this service can fulfil a 50-item delivery in five minutes, when it would take two hours on average without automation.

Parcel lockers and pick-up and drop-off points are another efficient way to reduce last-mile delivery costs, as multiple deliveries can be completed at a single location. Amazon is a pioneer in this space, having launched its locker facilities at Whole Foods Markets and other convenience stores in the US. Features like these are very convenient for consumers, as they do not need to be present to receive the delivery, and also benefit retailers as they have a wider timeframe to complete the delivery.

Ultimately, in today’s volatile retail climate, strategic use of technology is critical for retailers to keep up with the demands of the modern consumer. By moving to an insights-based decision-making model, utilising AI to boost efficiency and avoiding losses on last-mile deliveries, retailers can deliver added value that improves the customer experience and produces strong returns.

China dispatches government officials to Alibaba and other private companies

Posted on by Jack Pearson

The city of Hangzhou, one of China’s top technology hubs, is sending government officials to 100 local corporations in the latest instance of increasing state influence within the country’s private sector.

According to the city government’s website, officials will work with tech companies across the eastern province of Zhejiang – including e-commerce giant Alibaba – to streamline communications and workflow. The move could, however, be seen as an attempt to more closely monitor the private sector, which plays an increasingly vital role in China’s economy.

In recent years, there has been growing evidence to suggest the Chinese Government is trying to boost its presence within the private sector

The Chinese Government has a complicated relationship with privately owned companies. Despite being a communist-ruled nation, China has embraced many characteristics of capitalism: for example, it has encouraged the growth of its private companies by reducing foreign competition and cutting red tape. Since 2001, private entrepreneurs have also been able to become members of the Communist Party of China.

This does not mean the government is content to let businesses run their operations unchecked, though: private enterprises are obligated to establish and maintain a formal party organisation internally. The country’s biggest internet companies, meanwhile, must work closely with representatives of the public security system in order to prevent crime and control the flow of information.

In recent years, there has been growing evidence to suggest the Chinese Government is trying to boost its presence within the private sector, with foreign executives claiming to have come under increasing pressure to give party representatives more control over business affairs.

Faced with a slowing economy, the Chinese Government is moving quickly to exert more control over local policy and the operations of big businesses. By tightening ties between the public and private sectors through the Hangzhou initiative, the government is likely hoping to minimise the economic impacts of its ongoing trade war with the US.

Facebook launches new video-chat TV box

Posted on by Jack Pearson

On September 18, Facebook unveiled the latest update to its range of Portal video chatting devices, including a new product, Portal TV.

In recent years, a number of data-sharing scandals have tarnished Facebook’s reputation and eroded user trust. This has prompted the company to try and diversify its product portfolio and move towards more private modes of communication.

The question is whether Facebook’s new product can hold its own within the highly competitive space of TV-streaming services

Facebook first launched Portal in 2018 as a video-chat device. Its new line of devices includes a TV box that will enable users to watch programmes together, remotely. The launch marks the social media giant’s first venture into TV streaming hardware.

Facebook hopes that the social aspect of its product will give it a competitive edge over other TV services. Portal is also the only Facebook product built on hardware owned by the company, rather than by Google or Amazon. By selling hardware and personal devices, the firm will be able to tap into the smart home market, which is predicted to be worth $144bn by 2025.

The question is whether Facebook’s new product can hold its own within the highly competitive space of TV-streaming services. While the social nature of its product may be a selling point, Portal TV has only a few music apps and limited options for TV programming. As a result, it may struggle to divert customers away from content-focused rivals like Apple TV and Netflix.

Launching a device for the home could be considered a bold move for the company at a time when public sentiment seems largely negative. A recent poll found that two thirds of Americans are in favour of breaking up big tech companies like Facebook, Amazon and Google. However, this does not necessarily translate into fewer people using these platforms – in fact, there is evidence that the number of Facebook users continues to grow. Despite their disapproval of its parent company, people may be quite content to welcome Portal TV into their living rooms.

Start-up WeWork postpones IPO amid valuation concerns

Posted on by Jack Pearson

WeWork, the US office-sharing company, is postponing its stock market flotation after struggling to raise interest from investors. Its parent company, the We Company, was preparing to launch an investor roadshow this week to promote interest in the IPO, hoping to price and list its shares next week. However, the company announced on September 16 that it had decided to put the IPO on hold.

The decision comes amid ongoing concerns from investors. As well as losing $1.9bn last year, the company has been criticised for a number of corporate governance issues, including a lack of investor protection and the fact that there are no women on its board.

Some have called WeWork the most overvalued start-up in history, claiming it is an unprofitable real estate company marketing itself as an innovative tech firm

But perhaps investors’ biggest grievance has been with co-founder Adam Neumann, on account of his excessive influence within the company. Neumann has come under fire for putting his personal financial interests before those of the company. In July, he was criticised for cashing out over $700m in shares. The postponing of the IPO suggests that the corporate governance changes the company revealed on September 13 – which slightly lessened Neumann’s control over the company – were deemed insufficient to win over investors.

In July, WeWork was one of the US’ most valuable start-ups, valued at $47bn. Last week, however, Reuters reported that the company was considering a valuation of between $10bn and $12bn – even less than the $12.8bn it raised in equity when it was founded in 2010.

For WeWork’s critics, even $12bn would be an excessive share price. Some have called WeWork the most overvalued start-up in history, claiming it is an unprofitable real estate company marketing itself as an innovative tech firm. Neumann has been at the centre of this hype machine; he has claimed the company could solve the refugee crisis and that its main mission is “to elevate the world’s consciousness”.

WeWork now joins a number of high-profile private companies to receive a lukewarm response from investors in public markets, among them Uber and Lyft. The company expects to complete its offering by the end of the year, although next time it may need to set the bar lower than $47bn.