Mirantis acquires Docker Enterprise

Mirantis today announced that it has acquired Docker’s Enterprise business and team. Docker Enterprise was very much the heart of Docker’s product lineup, so this sale leaves Docker as a shell of its former, high-flying unicorn self. Docker itself, which installed a new CEO earlier this year, says it will continue to focus on tools that will advance developers’ workflows. Mirantis will keep the Docker Enterprise brand alive, though, which will surely not create any confusion.

With this deal, Mirantis is acquiring Docker Enterprise Technology Platform and all associated IP: Docker Enterprise Engine, Docker Trusted Registry, Docker Unified Control Plane and Docker CLI. It will also inherit all Docker Enterprise customers and contracts, as well as its strategic technology alliances and partner programs. Docker and Mirantis say they will both continue to work on the Docker platform’s open-source pieces.

The companies did not disclose the price of the acquisition, but it’s surely nowhere near Docker’s valuation during any of its last funding rounds. Indeed, it’s no secret that Docker’s fortunes changed quite a bit over the years, from leading the container revolution to becoming somewhat of an afterthought after Google open-sourced Kubernetes and the rest of the industry coalesced around it. It still had a healthy enterprise business, though, with plenty of large customers among the large enterprises. The company says about a third of Fortune 100 and a fifth of Global 500 companies use Docker Enterprise, which is a statistic most companies would love to be able to highlight — and which makes this sale a bit puzzling from Docker’s side, unless the company assumed that few of these customers were going to continue to bet on its technology.

Update: for reasons only known to Docker’s communications team, we weren’t told about this beforehand, but the company also today announced that it has raised a $35 million funding round from Benchmark. This doesn’t change the overall gist of the story below, but it does highlight the company’s new direction.

Here is what Docker itself had to say. “Docker is ushering in a new era with a return to our roots by focusing on advancing developers’ workflows when building, sharing and running modern applications. As part of this refocus, Mirantis announced it has acquired the Docker Enterprise platform business,” Docker said in a statement when asked about this change. “Moving forward, we will expand Docker Desktop and Docker Hub’s roles in the developer workflow for modern apps. Specifically, we are investing in expanding our cloud services to enable developers to quickly discover technologies for use when building applications, to easily share these apps with teammates and the community, and to run apps frictionlessly on any Kubernetes endpoint, whether locally or in the cloud.”

Mirantis itself, too, went through its ups and downs. While it started as a well-funded OpenStack distribution, today’s Mirantis focuses on offering a Kubernetes-centric on-premises cloud platform and application delivery. As the company’s CEO Adrian Ionel told me ahead of today’s announcement, today is possibly the most important day for the company.

So what will Mirantis do with Docker Enterprise? “Docker Enterprise is absolutely aligned and an accelerator of the direction that we were already on,” Ionel told me. “We were very much moving towards Kubernetes and containers aimed at multi-cloud and hybrid and edge use cases, with these goals to deliver a consistent experience to developers on any infrastructure anywhere — public clouds, hybrid clouds, multi-cloud and edge use cases — and make it very easy, on-demand, and remove any operational concerns or burdens for developers or infrastructure owners.”

Mirantis previously had about 450 employees. With this acquisition, it gains another 300 former Docker employees that it needs to integrate into its organization. Docker’s field marketing and sales teams will remain separate for some time, though, Ionel said, before they will be integrated. “Our most important goal is to create no disruptions for customers,” he noted. “So we’ll maintain an excellent customer experience, while at the same time bringing the teams together.”

This also means that for current Docker Enterprise customers, nothing will change in the near future. Mirantis says that it will accelerate the development of the product and merge its Kubernetes and lifecycle management technology into it. Over time, it will also offer a managed services solutions for Docker Enterprise.

While there is already some overlap between Mirantis’ and Docker Enterprise’s customer base, Mirantis will pick up about 700 new enterprise customers with this acquisition.

With this, Ionel argues, Mirantis is positioned to go up against large players like VMware and IBM/Red Hat. “We are the one real cloud-native player with meaningful scale to provide an alternative to them without lock-in into a legacy or existing technology stack.”

While this is clearly a day the Mirantis team is celebrating, it’s hard not to look at this as the end of an era for Docker, too. The company says it will share more about its future plans today, but didn’t make any spokespeople available ahead of this announcement.


By Frederic Lardinois

Salesforce Ventures invested $300M in Automattic while Salesforce was building a CMS

In September, Salesforce Ventures, the venture of arm of Salesforce, announced a hefty $300 million investment in Automattic, the company behind WordPress, the ubiquitous content management system (CMS). At the same time, the company was putting the finishing touches on Salesforce CMS, an in-house project it released last week.

The question is, why did it choose to do both?

One reason could be that WordPress isn’t just well-liked; it’s also the world’s most popular content management system, running 34 percent of the world’s 10 billion websites — including this one — according to the company. With Automattic valued at $3 billion, that gives Salesforce Ventures a 10 percent stake.

Given the substantial investment, you wouldn’t have been irrational to at least consider the idea that Salesforce may have had its eye on this company as an acquisition target. In fact, at the time of the funding, Automattic CEO Matt Mullenweg told TechCrunch’s Romain Dillet that there could be some partnerships and integrations with Salesforce in the future.

Now we have a Salesforce CMS, and a potential partnership with one of the world’s largest web content management (WCM) tools, and it’s possible that the two aren’t necessarily mutually exclusive.


By Ron Miller

AWS announces new savings plans to reduce complexity of reserved instances

Reserved instances (RIs) have provided a mechanism for companies, who expect to use a certain level of AWS infrastructure resources, to get some cost certainty, but as AWS’s Jeff Barr points out they are on the complex side. To fix that, the company announced a new method called Savings Plans.

“Today we are launching Savings Plans, a new and flexible discount model that provides you with the same discounts as RIs, in exchange for a commitment to use a specific amount (measured in dollars per hour) of compute power over a one or three year period,” Barr wrote in a blog post announcing the new program.

Amazon charges customers in a couple of ways. First, there is an on-demand price, which is basically the equivalent of the rack rate at a hotel. You are going to pay more for this because you’re walking up and ordering it on the fly.

Most organizations know they are going to need a certain level of resources over a period of time, and in these cases, they can save some money by buying in bulk up front. This gives them cost certainty as an organization, and it helps Amazon because it knows it’s going to have a certain level of usage and can plan accordingly.

While Reserved Instances aren’t going away yet, it sounds like Amazon is trying to steer customers to the new savings plans. “We will continue to sell RIs, but Savings Plans are more flexible and I think many of you will prefer them,” Barr wrote.

The Savings Plans come in two flavors. Compute Savings Plans provide up to 66% savings and are similar to RIs in this regard. The aspect that customers should like is that the savings are broadly applicable across AWS products, and you can even move work loads between regions and maintain the same discounted rate.

The other is an EC2 Instance Savings Plan. With this one, also similarly to the reserved instance, you can save up to 72% over the on-demand price, but with this option you are limited to a single region.  It does offer a measure of flexibility though allowing you to select different sizes of the same instance type or even switch operating systems from Windows to Linux without affecting your discount with your region of choice.

You can sign up today through the AWS Cost Explorer.


By Ron Miller

Salesforce announces new content management system

Salesforce has its fingers in a lot of parts of the customer experience, so why not content management? Today, the company announced a brand new tool called Salesforce Content Management System, which it says is designed from the ground up to deliver a quality customer experience across multiple channels.

The idea is to provide a way for customers to create, manage and deliver more meaningful content across multiple channels from within the Salesforce family of products. The company claims it doesn’t require any kind of deep technical knowledge to do it, meaning marketers and product people should be able to create and deliver content without the help of IT, once the system is properly set up.

Anna Rosenman, Salesforce’s VP of product marketing for Community Cloud, Commerce Cloud and Salesforce CMS says the company created the new CMS to answer a customer demand. “Our customers have been asking for a dedicated CMS. The systems that they’ve been relying on so far tend to be legacy tools that are hard to use and built for a single-channel or site,” she said.

Photo: Salesforce

While users can create more personalized content based on what they know about the customer based on Salesforce data, Rosenman says the key differentiator here is the ability to connect to third-party systems. “A hybrid CMS provides a native experience channel or touchpoint, but also gives you the flexibility to present content to any touchpoint built on a third-party system,” she explained.

Tony Byrne, founder and principal analyst at Real Story Group, who has followed the Web CMS space for two decades, says this isn’t the first time that Salesforce has tried content management. The previous iteration was called Salesforce Sites. “They made big promises around that platform, got some major customers on board and then dropped it,” Byrne said.

He says that because it’s a major challenge to build a sophisticated multi-channel CMS. “It’s easy to build a simple CMS. It’s much harder to build an extensible, enterprise platform,” he said. He added, “There’s a lot of work they still need to do to feed other platforms around things like connectors, simulation, tracking, very advanced asset management (e.g., compound assets), object-oriented storage, etc.”

But Rosenman says that the system’s built-in flexibility is designed to provide that, and even be used in conjunction with existing legacy tools if need be.

What’s interesting here is that Salesforce decided to build this tool, rather than buying a company and integrating it into the Salesforce family, an approach it has not been afraid to take in the past. In fact, the company pursues an aggressive acquisition strategy. This year alone it spent more than $15 billion to buy Tableau and another $1.35 billion to buy ClickSoftware.

In this case, in the tension between building and buying, it decided to build instead. Time will tell if that was a good decision or not.


By Ron Miller

Neo4j introduces new cloud service to simplify building a graph database

Neo4j, a popular graph database, is available as an open source product for anyone to download and use. Its enterprise product aimed at larger organizations is growing fast, but the company recognized there was a big market in between those two extremes, and today it introduced a new managed cloud service called Aura.

They wanted something in the product family for smaller companies, says Emil Eifrem, CEO and co-founder at Neo4j . Aura really gives these smaller players a much more manageable offering with flexible pricing options. “To get started with an enterprise project can run hundreds of thousands of dollars per year. Whereas with Aura, you can get started for about 50 bucks a month, and that means that it opens it up to new segments of the market,” Eifrem told TechCrunch. As he points out, even a startup on a shoe-string budget can afford $50 a month.

Aura operates on a flexible pricing model, and offers the kind of value proposition you would expect from a cloud version of the product. The company deals with all of the management, security and updates for you. It will also scale as needed to meet your data requirements as you grow. The idea is to allow developers to concentrate on simply building applications and let Neo4j deal the database for you.

He says over time, he could see larger businesses, who don’t want to deal with the management side of developing a graph database application also using the cloud product. “Why would you want to operate your own database? You should probably focus on your core business and building applications to support that core business,” he said. But he recognizes change happens slowly in larger organizations, and not every business will be comfortable with a managed service. That’s why they are offering different options to meet different requirements.

Graph databases allow you to see connections between data. It is the underlying technology, for example, in a social networking app, that lets you the connection between people you know and people your friends know. It is also the technology on an e-commerce site that can offer recommendations based on what you bought before because people who buy a certain product are more likely to purchase other related products.


By Ron Miller

Chronosphere launches with $11M Series A to build scalable, cloud-native monitoring tool

Chronoshere, a startup from two ex-Uber engineers, who helped create the open source M3 monitoring project to handle Uber-level scale, officially launched today with the goal of building a commercial company on top of the open source project.

It also announced an $11 million investment led by Greylock with participation from venture capitalist, Lee Fixel.

While the founders, CEO Martin Mao and CTO Rob Skillington, were working at Uber they recognized a gap in the monitoring industry, particularly around cloud native technologies like containers and micro services. There weren’t any tools available on the market that could handle Uber’s scaling requirements. So like any good engineers, they went out and built their own.

“We looked around at the market at the time and couldn’t find anything in open source or commercially available that could really scale to our needs. So we ended up building and open sourcing our solution, which is M3. Over the last three to four years we’ve scaled M3 to one of the largest production monitoring systems in the world today,” Mao explained.

The essential difference between M3 and other open source, cloud native monitoring solutions like Prometheus is that ability to scale, he says.

One of the main reasons they left to start a company, with the blessing of Uber, was that the community began asking for features that didn’t really make sense for Uber. By launching Chronosphere, Mao and Skillington would be taking on the management of the project moving forward (although sharing governance for the time being with Uber), while building those enterprise features the community has been clamoring for.

The new company’s first product will be a cloud version of M3 to help reduce some of the complexity associated with managing an M3 project. “M3 itself is a fairly complex piece of technology to run. It is solving a fairly complex problem at large scale, and running it actually requires a decent amount of investment to run at large scale, so the first thing we’re doing is taking care of that management,” Mao said.

Jerry Chen, who led the investment at Greylock, saw a company solving a big problem. “They were providing such a high resolution view of what’s going on in your cloud infrastructure and doing that at scale at a cost that actually makes sense. They solved that problem at Uber, and I saw them, and I was like wow, the rest of the market needs what guys built and I wrote the Series A check. It was as simple as that,” Chen told TechCrunch.

The cloud product is currently in private Beta, and they expect to open to public Beta early next year.


By Ron Miller

Workday to acquire online procurement platform Scout RFP for $540M

Workday announced this afternoon that it has entered into an agreement to acquire online procurement platform Scout RFP for $540 million. The company raised over $60 million on a post valuation of $184.5 million, according to Pitchbook data.

The acquisition builds on top of Workday’s existing procurement solutions, Workday Procurement and Workday Inventory, but Workday chief product product officer Petros Dermetzis wrote in a blog post announcing the deal that Scout gives the company a more complete solution for customers.

“With increased importance around the supplier as a strategic asset, the acquisition of Scout RFP will help accelerate Workday’s ability to deliver a comprehensive source-to-pay solution with a best-in-class strategic sourcing offering, elevating the office of procurement in strategic importance and transforming the procurement function,” he wrote.

It’s not a coincidence that Workday chose this particular online procurement startup. In fact, Workday Ventures has been an investor in the company since 2018, and it’s also an official Workday partner, making it a known quantity for the organization.

As the Scout RFP founders stated in a blog post about today’s announcement, the two companies have worked well together and a deal made sense. “Working closely with the Workday team, we realized how similar our companies’ beliefs and values are. Both companies put user experience at the center of product focus and are committed to customer satisfaction, employee engagement and overall business impact. It was not surprising how easy it was to work together and how quickly we saw success partnering on go-to-market activities. From a culture standpoint, it just worked,” they wrote. A deal eventually came together as a result.

Scout RFP is a fairly substantial business with 240 customers in 155 countries. There are 300,000 users on the platform, according to data supplied by the company. The company’s 160 employees will be moving to Workday when the deal closes, which is expected by the end of January, pending standard regulatory review.


By Ron Miller

Volterra announces $50M investment to manage apps in hybrid environment

Volterra is an early stage startup that has been quietly working on a comprehensive solution to help companies manage applications in hybrid environments. The company emerged from stealth today with a $50 million investment and a set of products.

Investors include Khosla Ventures and Mayfield along with strategic investors M12 (Microsoft’s venture arm), Itochu Technology Ventures and Samsung NEXT. The company, which was founded in 2017, already has 100 employees and more than 30 customers.

What has attracted these investors and customers is a full stack solution that includes both hardware and software to manage applications in the cloud or on prem. Volterra founder and CEO Ankur Singla says when he was at his previous company, Contrail Systems, which was acquired by Juniper Networks in 2012 for $176 million, he saw first-hand how large companies were struggling with the transition to hybrid.

“The big problem we saw was in building and operating application that scale is a really hard problem. They were adopting multiple hybrid cloud strategies, and none of them solved the problem of unifying the application and the infrastructure layer, so that the application developers and DevOps teams don’t have to worry about that,” Singla explained.

He says the Volterra solution includes three main products, VoltStack​, VoltMesh and VoltConsole to help solve this scaling and management problem. As Volterra describes the total solution, “Volterra has innovated a consistent, cloud-native environment that can be deployed across multiple public clouds and edge sites — a distributed cloud platform. Within this SaaS-based offering, Volterra integrates a broad range of services that have normally been siloed across many point products and network or cloud providers.” This includes not only the single management plane, but security, management and operations components.

Diagram: Volterra

The money has come over a couple of rounds, helping to build the solution to this point, and it required a complex combination of hardware and software to do it. They are hoping to help organizations that have been looking for a cloud native approach to large-scale applications such as industrial automation will adopt this approach.


By Ron Miller

Robocorp announces $5.6M seed to bring open source option to RPA

Robotic Process Automation (RPA) has been a hot commodity in recent years as it helps automate tedious manual workflows inside large organizations. Robocorp, a San Francisco startup, wants to bring open source and RPA together. Today it announced a $5.6 million seed investment.

Benchmark led the round with participation from Slow Ventures, firstminute Capital, Bret Taylor, president and chief product officer at Salesforce and Docker CEO Rob Bearden. In addition, Benchmark’s Peter Fenton will be joining the company’s board.

Robocorp co-founder and CEO Antti Karjalainen has been around open source projects for years, and he saw an enterprise software category that was lacking in open source options. “We actually have a unique angle on RPA, where we are introducing open source and cloud native technology into the market and focusing on developer-led technologies,” Karjalainen said.

He sees a market that’s top-down and focused on heavy sales cycles. He wants to bring the focus back to the developers who will be using the tools. “We are all about removing friction from developers. So, we are focused on giving developers tools that they like to use, and want to use for RPA, and doing it in an open source model where the tools themselves are free to use,” he said.

The company is built on the open source Robot Framework project, which was originally developed as an open source software testing environment, but he sees RPA having a lot in common with testing, and his team has been able to take the project and apply it to RPA.

If you’re wondering how the company will make money they are offering a cloud service to reduce the complexity even further of using the open source tools, and that includes the kinds of features enterprises tend to demand from these projects like security, identity and access management, and so forth.

Benchmark’s Peter Fenton, who has worked for several successful open source startups including JBoss, SpringSource and Elastic, sees RPA as an area that’s ripe for developer-focused open source option. “We’re living in the era of the developer, where cloud-native and open source provide the freedom to innovate without constraint. Robocorp’s RPA approach provides developers the cloud native, open source tools to bring RPA into their organizations without the burdensome constraints of existing offerings,” Fenton said.

The company intends to use the money to add new employees and continue scaling the cloud product, while working to build the underlying open source community.

While UIPath, a fast growing startup with a hefty $7.1 billion valuation recently announced it was laying off 400 people, Gartner published a study in June showing that RPA is the fastest growing enterprise software category.


By Ron Miller

New Relic snags early stage serverless monitoring startup IOpipe

As we move from a world dominated by virtual machines to one of serverless, it changes the nature of monitoring, and vendors like New Relic certainly recognize that. This morning the company announced it was acquiring IOpipe, an early-stage Seattle serverless monitoring startup to help beef up its serverless monitoring chops. Terms of the deal weren’t disclosed.

New Relic gets what it calls “key members of the team,” which at least includes co-founders Erica Windisch and Adam Johnson, along with the IOpipe technology. The new employees will be moving from Seattle to New Relic’s Portland offices.

“This deal allows us to make immediate investments in onboarding that will make it faster and simpler for customers to integrate their [serverless] functions with New Relic and get the most out of our instrumentation and UIs that allow fast troubleshooting of complex issues across the entire application stack,” the company wrote in a blog post announcing the acquisition.

It adds that initially the IOpipe team will concentrate on moving AWS Lambda features like Lambda Layers into the New Relic platform. Over time, the team will work on increasing support for Serverless function monitoring. New Relic is hoping by combining the IOpipe team and solution with its own, it can speed up its serverless monitoring chops .

As TechCrunch’s Frederic Lardinois pointed out in his article about the company’s $2.5 million seed round in 2017, Windisch and Johnson bring impressive credentials.

“IOpipe co-founders Adam Johnson (CEO) and Erica Windisch (CTO), too, are highly experienced in this space, having previously worked at companies like Docker and Midokura (Adam was the first hire at Midokura and Erica founded Docker’s security team). They recently graduated from the Techstars NY program,” Lardinois wrote at the time.

The startup has been helping monitor serverless operations for companies running AWS Lambda. It’s important to understand that serverless doesn’t mean that there are no servers, but the cloud vendor — in this case AWS — provides the exact resources to complete an operation and nothing more.

IOpipe co-founders Erica Windisch and Adam Johnson

Photo: New Relic

Once the operation ends, the resources can simply get redeployed elsewhere. That makes building monitoring tools for such ephemeral resources a huge challenge. New Relic has also been working on the problem and released New Relic Serverless for AWS Lambda offering earlier this year.

IOpipe was founded in 2015, which was just around the time that Amazon was announcing Lambda. At the time of the seed round the company had eight employees. According to Pitchbook data, it currently has between 1 and 10 employees, and has raised $7.07 million since its inception.

New Relic was founded in 2008 and raised over $214 million, according to Crunchbase, before going public in 2014. Its stock price was $65.42 at the time of publication up $1.40.


By Ron Miller

Samsung ramps up its B2B partner and developer efforts

Chances are you mostly think of Samsung as a consumer-focused electronics company, but it actually has a very sizable B2B business as well, which serves over 50,000 large enterprises and hundreds of thousands of SMB entrepreneurs via its partners. At its developer conference this week, it’s putting the spotlight squarely on this side of its business — with a related hardware launch as well. The focus of today’s news, however, is on Knox, Samsung’s mobile security platform and Project AppStack, which will likely get a different name soon, and which provides B2B customers with a new mechanism to deliver SaaS tools and native apps to their employees’ devices, as well as new tools for developers that make these services more discoverable.

At least in the U.S., Samsung hasn’t really marketed its B2B business all that much. With this event, the company is clearly thinking to change that.

At its core, Samsung is, of course, a hardware company, and as Taher Behbehani, the head of its U.S. mobile B2B division, told me, Samsung’s tablet sales actually doubled in the last year and most of these were for industrial deployments and business-specific solutions. To better serve this market, the company today announced that it is bringing the rugged Tab Active Pro to the U.S. market. Previously, it was only available in Europe.

The Active Pro, with its 10.1″ display, supports Samsung’s S Pen, as well as Dex for using it on the desktop. It’s got all of the dust and water resistance you would expect from a rugged device, is rated to easily support drops from about four feet high, and promises up to 15 hours of battery life. It also features LTE connectivity and has an NFC reader on the back to allow you to badge into a secure application or take contactless payments (which are quite popular in most of the world but are only very slowly becoming a thing in the U.S.), as well a programmable button to allow business users and frontline workers to open up any application they select (like a barcode scanner).

“The traditional rugged devices out there are relatively expensive, relatively heavy to carry around for a full shift,” Samsung’s Chris Briglin told me. “Samsung is growing that market by serving users that traditionally haven’t been able to afford rugged devices or have had to share them between up to four co-workers.”

Today’s event is less about hardware than software and partnerships, though. At the core of the announcements is the new Knox Partner Program, a new way for partners to create and sell applications on Samsung devices. “We work with about 100,000 developers,” said Behbehani. “Some of these are developers are inside companies. Some are outside independent developers and ISVs. And what we hear from these developer communities is when they have a solution or an app, how do I get that to a customer? How do I distribute it more effectively?”

This new partner program is Samsung’s solution for that. It’s a three-tier partner program that’s an evolution of the existing Samsung Enterprise Alliance program. At the most basic level, partners get access to support and marketing assets. At all tiers, partners can also get Knox validation for their applications to highlight that they properly implement all of the Knox APIs.

The free Bronze tier includes access to Knox SDKs and APIs, as well as licensing keys. At the Silver level, partners will get support in their region, while Gold-level members get access to the Samsung Solutions Catalog, as well as the ability to be included in the internal catalog used by Samsung sales teams globally. “This is to enable Samsung teams to find the right solutions to meet customer needs, and promote these solutions to its customers,” the company writes in today’s announcement. Gold-level partners also get access to test devices.

The other new service that will enable developers to reach more enterprises and SMBs is Project Appstack.

“When a new customer buys a Samsung device, no matter if it’s an SMB or an enterprise, depending on the information they provide to us, they get to search for and they get to select a number of different applications specifically designed to help them in their own vertical and for the size of the business,” explained Behbehani. “And once the phone is activated, these apps are downloaded through the ISV or the SaaS player through the back-end delivery mechanism which we are developing.”

For large enterprises, Samsung also runs an algorithm that looks at the size of the business and the vertical it is in to recommend specific applications, too.

Samsung will run a series of hackathons over the course of the next few months to figure out exactly how developers and its customers want to use this service. “It’s a module. It’s a technology backend. It has different components to it,” said Behbehani. “We have a number of tools already in place we have to finetune others and we also, to be honest, want to make sure that we come up with a POC in the marketplace that accurately reflects the requirements and the creativity of what the demand is in the marketplace.”


By Frederic Lardinois

Google launches TensorFlow Enterprise with long-term support and managed services

Google open-sourced its TensorFlow machine learning framework back in 2015 and it quickly became one of the most popular platforms of its kind. Enterprises that wanted to use it, however, had to either work with third parties or do it themselves. To help these companies — and capture some of this lucrative market itself — Google is launching TensorFlow Enterprise, which includes hands-on, enterprise-grade support and optimized managed services on Google Cloud.

One of the most important features of TensorFlow Enterprise is that it will offer long-term support. For some versions of the framework, Google will offer patches for up to three years. For what looks to be an additional fee, Google will also offer engineering assistance from its Google Cloud and TensorFlow teams to companies that are building AI models.

All of this, of course, is deeply integrated with Google’s own cloud services. “Because Google created and open-sourced TensorFlow, Google Cloud is uniquely positioned to offer support and insights directly from the TensorFlow team itself,” the company writes in today’s announcement. “Combined with our deep expertise in AI and machine learning, this makes TensorFlow Enterprise the best way to run TensorFlow.”

Google also includes Deep Learning VMs and Deep Learning Containers to make getting started with TensorFlow easier and the company has optimized the enterprise version for Nvidia GPUs and Google’s own Cloud TPUs.

Today’s launch is yet another example of Google Cloud’s focus on enterprises, a move the company accelerated when it hired Thomas Kurian to run the Cloud businesses. After years of mostly ignoring the enterprise, the company is now clearly looking at what enterprises are struggling with and how it can adapt its products for them.


By Frederic Lardinois

Datameer announces $40M investment as it pivots away from Hadoop roots

Datameer, the company that was born as a data prep startup on top of the open source Hadoop project, announced a $40 million investment and a big pivot away from Hadoop, while staying true to its big data roots.

The investment was led by existing investor ST Telemedia . Other existing investors including Redpoint Ventures, Kleiner Perkins, Nextworld Capital, Citi Ventures and Top Tier Capital Partners also participated. Today’s investment brings the total raised to almost $140 million, according to Crunchbase data.

Company CEO Christian Rodatus says the company’s original mission was about making Hadoop easier to use for data scientists, business analysts and engineers. In the last year, the three biggest commercial Hadoop vendors — Cloudera, Hortonworks and MapR — fell on hard times. Cloudera and Hortonworks merged and MapR was sold to HPE in a fire sale.

Starting almost two years ago, Datameer recognized that against this backdrop, it was time for a change. It began developing a couple of new products. It didn’t want to abandon its existing customer base entirely of course, so it began rebuilding its Hadoop product and is now calling it Datameer X. It is a modern cloud-native product built to run on Kubernetes, the popular open source container orchestration tool. Instead of Hadoop, it will be based on Spark. He reports they are about two-thirds done with this pivot, but the product has been in the hands of customers.

The company also announced Neebo, an entirely new SaaS tool to give data scientists the ability to process data in whatever form it takes. Rodatus sees a world coming where data will take many forms from traditional data to Python code from data analysts or data scientists to SaaS vendor dashboards. He sees Neebo bringing all of this together in a managed service with the hope that it will free data scientists to concentrate on getting insight from the data. It will work with data visualization tools like Tableau and Looker, and should be generally available in the coming weeks.

The money should help them get through this pivot, hire more engineers to continue the process and build a go-to-market team for the new products. It’s never easy pivoting like this, but the investors are hoping that the company can build on its existing customer base, while taking advantage of the market need for data science processing tools. Time will tell if it works.


By Ron Miller

Even after Microsoft wins, JEDI saga could drag on

The DoD JEDI contract saga came to a thrilling conclusion on Friday afternoon, appropriately enough, with one final plot twist. The presumptive favorite, Amazon did not win, stunning many, including likely the company itself. In the end, Microsoft took home the $10 billion prize.

This contract was filled with drama from the beginning, given the amount of money involved, the length of the contract, the winner-take-all nature of the deal — and the politics. We can’t forget the politics. This was Washington after all and Jeff Bezos does own the Washington Post.

Then there was Oracle’s fury throughout the procurement process. The president got involved in August. The current defense secretary recused himself on Wednesday, two days before the decision came down. It was all just so much drama, even the final decision itself, handed down late Friday afternoon, but it’s unclear if this is the end or just another twist in this ongoing tale.

Some perspective on $10 billion

Before we get too crazy about Microsoft getting a $10 billion, 10 year contract, consider that Amazon earned $9 billion last quarter alone in cloud revenue. Microsoft reported $33 billion last quarter in total revenue. It reported around $11 billion in cloud revenue. Synergy Research pegs the current cloud infrastructure market at well over $100 billion annually (and growing).

What we have here is a contract that’s worth a billion a year. What’s more, it’s possible it might not even be worth that much if the government uses one of its out clauses. The deal is actually initially guaranteed for just two years. Then there are a couple of three-year options, with a final two-year option at the end if gets that far.

The DOD recognized that with the unique nature of this contract, going with a single vendor, it wanted to keep its options open should the tech world shift suddenly under its feet. It didn’t want to be inextricably tied to one company for a decade if that company was suddenly disrupted by someone else. Given the shifting sands of technology, that part of the strategy was a wise one.

Where the value lies

If value of this deal was not the contract itself, it begs the question, why did everyone want it so badly? The $10 billion JEDI deal was simply a point of entree. If you could modernize the DoD’s infrastructure, the argument goes, chances are you could do the same for other areas of the government. It could open the door for Microsoft for a much more lucrative government cloud business.

But it’s not as though Microsoft didn’t already have a lucrative cloud business. In 2016, for example, the company signed a deal worth almost a billion dollars to help move the entire department to Windows 10. Amazon too, has had its share of government contracts, famously landing the $600 million to build the CIA’s private cloud.

But given all the attention to this deal, it always felt a little different from your standard government contract. Just the fact the DoD used a Star Wars reference for the project acronym drew more attention to the project from the start. Therefore, there was some prestige for the winner of this deal, and Microsoft gets bragging rights this morning, while Amazon is left to ponder what the heck happened. As for other companies like Oracle, who knows how they’re feeling about this outcome.

Hell hath no fury like Oracle scorned

Ah yes Oracle; this tale would not be complete without discussing the rage of Oracle throughout the JEDI RFP process. Even before the RFP process started, they were complaining about the procurement process. Co-CEO Safra Catz had dinner with the president to complain that contract process wasn’t fair (not fair!). Then it tried complaining to the Government Accountability Office. They found no issue with the process.

They went to court. The judge dismissed their claims that involved both the procurement process and that a former Amazon employee, who was hired by DoD, was involved in the process of creating the RFP. They claimed that the former employee was proof that the deal was tilted toward Amazon. The judge disagreed and dismissed their complaints.

What Oracle could never admit, was that it simply didn’t have the same cloud chops that Microsoft and Amazon, the two finalists, had. It couldn’t be that they were late to the cloud or had a fraction of the market share that Amazon and Microsoft had. It had to be the process or that someone was boxing them out.

What Microsoft brings to the table

Outside of the politics of this decision (which we will get to shortly), Microsoft brought some experience and tooling the table that certainly gave it some advantage in the selection process. Until we see the reasons for the selections, it’s hard to know exactly why DoD chose Microsoft, but we know a few things.

First of all there are the existing contracts with DoD, including the aforementioned Windows 10 contract and a five year $1.76 billion contract with DoD Intelligence to provide “innovative enterprise services” to the DoD.

Then there is Azure Stack, a portable private cloud stack that the military could stand up anywhere. It could have great utility for missions in the field when communicating with a cloud server could be problematic.

Fool if you think it’s over

So that’s that right? The decision has been made and it’s time to move on. Amazon will go home and lick its wounds. Microsoft gets bragging rights and we’re good. Actually, this might not be where it ends at all.

Amazon for instance could point to Jim Mattis’ book where he wrote that the president told the then Defense Secretary to “screw Bezos out of that $10 billion contract.” Mattis says he refused saying he would go by the book, but it certainly leaves the door open to a conflict question.

It’s also worth pointing out that Jeff Bezos owns the Washington Post and the president isn’t exactly in love with that particular publication. In fact, this week, the White House canceled its subscription and encouraged other government agencies to do so as well.

Then there is the matter of current Defense Secretary Mark Espers suddenly recusing himself last Wednesday afternoon based on a minor point that one of his adult children works at IBM (in a non-cloud consulting job). He claimed he wanted to remove any hint of conflict of interest, but at this point in the process, it was down to Microsoft and Amazon. IBM wasn’t even involved.

If Amazon wanted to protest this decision, it seems it would have much more solid ground to do so than Oracle ever had.

The bottom line is a decision has been made, at least for now, but this process has been rife with controversy from the start, just by the design of the project, so it wouldn’t be surprising to see Amazon take some protest action of its own. It seems oddly appropriate.


By Ron Miller

Bill McDermott aims to grow ServiceNow like he did SAP

Bill McDermott has landed. Two weeks ago, he stepped down as CEO at SAP after a decade leading the company. Today, ServiceNow announced that he will be its new CEO.

It’s unclear how quickly the move came together but the plan for him is clear: to scale revenue like he did in his last job.

Commenting during the company’s earning’s call today, outgoing CEO John Donahoe said that McDermott met all of the board’s criteria for its next leader. This includes the ability to expand globally, expand the markets it serves and finally scale the go-to-market organization internally, all in the service of building toward a $10 billion revenue goal. He believes McDermott checks all those boxes.

McDermott has his work cut out for him. The company’s 2018 revenue was $2.6 billion. Still, he fully embraced the $10 billion challenge. “Well let me answer that very simply, I completely stand by [the $10 billion goal], and I’m looking forward to achieving it,” he said with bravado during today’s call.

It’s worth noting that as the company strives to reach that lofty revenue goal in the coming years, it will be doing with a new CEO in McDermott, as well as a new CFO. The company is in the midst of a search to fill that key position, as well.

McDermott has been here before though. He points out that in the decade he was at SAP, under his leadership the company moved the market cap from $39 billion to $163 billion. Today, ServiceNow’s market cap is similar to when McDermott started at SAP at a little over $41 billion.

He also recognizes that this is going to be a new challenge. “I’ve seen a lot of different business models, and [SAP has] a very different business model than ServiceNow. This is a pure play cloud,” he said. That means as a leader, he says that has to think about product changes differently, how they fit in the overall platform, while maintaining simplicity and keeping the developer community in mind.

Ray Wang, founder and principal analyst at Constellation Research said that ServiceNow is at a point where it needs an enterprise-class CEO who understands tech, partnerships, systems integrators and real enterprise sales and marketing — and McDermott brings all of that to his new employer.


By Ron Miller