AlphaSense, a search engine for analysis and business intel, raises $50M led by Innovation Endeavors

Google and its flagship search portal opened the door to the possibilities of how to build a business empire on the back of organising and navigating the world’s information, as found on the internet. Now, a startup that’s built a search engine tailored to the needs of enterprises and their own quests for information has raised a round of funding to see if it can do the same for the B2B world.

AlphaSense, which provides a way for companies to quickly amass market intelligence around specific trends, industries and more to help them make business decisions, has closed a $50 million round of funding, a Series B that it’s planning to use to continue enhancing its product and expanding to more verticals.

Today, the company today counts some 1,000 clients on its books, with a heavy emphasis on investment banks and related financial services companies. That’s in part because of how the company got its start: Finnish co-founder and CEO Jaakko (Jack) Kokko he had been an analyst at Morgan Stanley in a past life and understood the labor and time pain points of doing market research, and decided to build a platform to help shorted a good part of the information gathering process.

“My experience as an analyst on Wall Street showed me just how fragmented information really was,” he said in an interview, citing as one example how complex sites like those of the FDA are not easy to navigate to look for new information an updates — the kind of thing that a computer would be much more adept at monitoring and flagging. “Even with the best tools and services, it still was really hard to manually get the work done, in part because of market volatility and the many factors that cause it. We can now do that with orders of magnitude more efficiency. Firms can now gather information in minutes that would have taken an hour. AlphaSense does the work of the best single analyst, or even a team of them.”

(Indeed, the “alpha” of AlphaSense appears to be a reference to finance: it’s a term that refers to the ability of a trader or portfolio manager to beat the typical market return.)

The lead investor in this round is very notable and says something about the company’s ambitions. It’s Innovation Endeavors, the VC firm backed by Eric Schmidt, who had been the CEO of none other than Google (the pace-setter and pioneer of the search-as-business model) for a decade, and then stayed on as chairman and ultimately board member of Google and then Alphabet (its later holding company) until just last June.

Schmidt presided over Google at what you could argue was its most important time, gaining speed and scale and transitioning from an academic idea into full-fledged, huge public business whose flagship product has now entered the lexicon as a verb and (through search and other services like Android and YouTube) is a mainstay of how the vast majority of the world uses the web today. As such he is good at spotting opportunities and gaps in the market, and while enterprise-based needs will never be as prominent as those of mass-market consumers, they can be just as lucrative.

“Information is the currency of business today, but data is overwhelming and fragmented, making it difficult for business professionals to find the right insights to drive key business decisions,” he said in a statement. “We were impressed by the way AlphaSense solves this with its AI and search technology, allowing businesses to proceed with the confidence that they have the right information driving their strategy.”

This brings the total raised by AlphaSense to $90 million, with other investors in this round including Soros Fund Management LLC and other unnamed existing investors. Previous backers had included Tom Glocer (the former Reuters CEO who himself is working on his own fintech startup, a security firm called BlueVoyant), the MassChallenge incubator, Tribeca Venture Partners and others. Kokko said AlphaSense is not disclosing its valuation at this point. (I’m guessing though that it’s definitely on the up.)

There have been others that have worked to try to tackle the idea of providing more targeted, and business focused search portals, from the likes of Wolfram Alpha (another alpha!) through to Lexis Nexis and others like Bloomberg’s terminals, FactSet, Business Quant and many more.

One interesting aspect of AlphaSense is how it’s both focused on pulling in requests as well as set up to push information to its users based on previous search parameters. Currently these are set up to only provide information, but over time, there is a clear opportunity to build services to let the engines take on some of the actions based on that information, such as adjusting asking prices for sales and other transactions.

“There are all kinds of things we could do,” said Kokko. “This is a massive untapped opportunity. But we’re not taking the human out of the loop, ever. Humans are the right ones to be making final decisions, and we’re just about helping them make those faster.”


By Ingrid Lunden

48-hour, buy-one-get-one sale — TC Sessions: Enterprise 2019

Every startupper we’ve ever met loves a great deal, and so do we. That’s why we’re celebrating Prime day with a 48-hour flash sale on tickets to TC Sessions: Enterprise 2019, which takes place September 5 at the Yerba Buena Center for the Arts in San Francisco.

We’re talking a classic BOGO — buy-one-get-one — deal that starts today and ends tomorrow, July 16, at 11:59 p.m. (PT). Buy one early-bird ticket ($249) and you get a second ticket for free. But this BOGO goes bye-bye in just 48 hours, so don’t wait. Buy your TC Sessions: Enterprise tickets now and save.

Get ready to join more than 1,000 attendees for a day-long, intensive experience exploring the enterprise colossus — a tech category that generates hundreds of new startups, along with a steady stream of multibillion-dollar acquisitions, every year.

What can you expect at TC Sessions: Enterprise? For starters, you’ll hear TechCrunch editors interview enterprise software leaders, including tech titans, rising founders and boundary-breaking VCs.

One such titan, George Brady — Capital One’s executive VP in charge of tech operations — will join us to discuss how the financial institution left legacy hardware and software behind to embrace the cloud. Quite a journey in such a highly regulated industry.

Our growing speaker roster features other enterprise heavy-hitters, including Aaron Levie, Box co-founder and CEO; Aparna Sinha, Google’s director of product management for Kubernetes and Anthos; Jim Clarke, Intel’s director of quantum hardware; and Scott Farquhar, co-founder and co-CEO of Atlassian.

Looking for in-depth information on technical enterprise topics? You’ll find them in our workshops and breakout sessions. Check out the exhibiting early-stage enterprise startups focused on disrupting, well, everything. Enjoy receptions and world-class networking with other founders, investors and technologists actively building the next generation of enterprise services.

TC Sessions: Enterprise 2019 takes place September 5, and we pack a lot of value into a single day. Double your ROI and take advantage of our 48-hour BOGO sale. Buy your ticket before July 16 at 11:59 p.m. (PT) and get another ticket free. That’s two tickets for one early-bird price. And if that’s not enough value, get this: we’ll register you for a free Expo-only pass to Disrupt SF 2019 for every TC Sessions: Enterprise ticket you purchase (mic drop).

Interested in sponsoring TC Sessions: Enterprise? Fill out this form and a member of our sales team will contact you.


By Emma Comeau

We’ll talk even more Kubernetes at TC Sessions: Enterprise with Microsoft’s Brendan Burns and Google’s Tim Hockin

You can’t go to an enterprise conference these days without talking containers — and specifically the Kubernetes container management system. It’s no surprise then, that we’ll do the same at our inaugural TC Sessions: Enterprise event on September 5 in San Francisco. As we already announced last week, Kubernetes co-founder Craig McLuckie and Aparna Sinha, Google’s director of product management for Kubernetes, will join us to talk about the past, present and future of containers in the enterprise.

In addition, we can now announce that two other Kubernetes co-founders will join us: Google principal software engineer Tim Hockin, who currently works on Kubernetes and the Google Container Engine, and Microsoft distinguished engineer Brendan Burns, who was the lead engineer for Kubernetes during his time at Google.

With this, we’ll have three of the four Kubernetes co-founders onstage to talk about the five-year-old project.

Before joining the Kuberntes efforts, Hockin worked on internal Google projects like Borg and Omega, as well as the Linux kernel. On the Kubernetes project, he worked on core features and early design decisions involving networking, storage, node, multi-cluster, resource isolation and cluster sharing.

While his colleagues Craig McLuckie and Joe Beda decided to parlay their work on Kubernetes into a startup, Heptio, which they then successfully sold to VMware for about $550 million, Burns took a different route and joined the Microsoft Azure team three years ago.

I can’t think of a better group of experts to talk about the role that Kubernetes is playing in reshaping how enterprise build software.

If you want a bit of a preview, here is my conversation with McLuckie, Hockin and Microsoft’s Gabe Monroy about the history of the Kubernetes project.

Early-Bird tickets are now on sale for $249; students can grab a ticket for just $75. Book your tickets here before prices go up.


By Frederic Lardinois

We’re talking Kubernetes at TC Sessions: Enterprise with Google’s Aparna Sinha and VMware’s Craig McLuckie

Over the past five years, Kubernetes has grown from a project inside of Google to an open source powerhouse with an ecosystem of products and services, attracting billions of dollars in venture investment. In fact, we’ve already seen some successful exits, including one from one of our panelists.

On September 5th at TC Sessions: Enterprise, we’re going to be discussing the rise of Kubernetes with two industry veterans. For starters we have Aparna Sinha, director of product management for Kubernetes and the newly announced Anthos product. Sinha was in charge of several early Kubernetes releases and has worked on the Kubernetes team at Google since 2016. Prior to joining Google, she had 15 years experience in enterprise software settings.

Craig McLuckie will also be joining the conversation. He’s one of the original developers of Kubernetes at Google. He went on to found his own Kubernetes startup, Heptio, with Joe Beda, another Google Kubernetes alum. They sold the company to VMware last year for $505 million after raising $33.5 million, according to Crunchbase data.

The two bring a vast reservoir of knowledge and will be discussing the history of Kubernetes, why Google decided to open source it and how it came to grow so quickly. Two other Kubernetes luminaries will be joining them. We’ll have more about them in another post soon.

Kubernetes is a container orchestration engine. Instead of developing large monolithic applications that sit on virtual machines, containers run a small part of the application. As the components get smaller, it requires an orchestration layer to deliver the containers when needed and make them go away when they are not longer required. Kubernetes acts as the orchestra leader.

As Kubernetes, containerization and the cloud-native ethos it encompasses has grown, it has helped drive the enterprise shift to the cloud in general. If you can write your code once, and use it in the cloud or on prem, it means you don’t have to manage applications using different tool sets and that has had broad appeal for enterprises making the shift to the cloud.

TC Sessions: Enterprise (September 5 at San Francisco’s Yerba Buena Center) will take on the big challenges and promise facing enterprise companies today. TechCrunch’s editors will bring to the stage founders and leaders from established and emerging companies to address rising questions, like the promised revolution from machine learning and AI, intelligent marketing automation and the inevitability of the cloud, as well as the outer reaches of technology, like quantum computing and blockchain.

Tickets are now available for purchase on our website at the early-bird rate of $395; student tickets are just $245.

Student tickets are just $245 – grab them here.

We have a limited number of Startup Demo Packages available for $2,000, which includes four tickets to attend the event.

For each ticket purchased for TC Sessions: Enterprise, you will also be registered for a complimentary Expo Only pass to TechCrunch Disrupt SF on October 2-4.


By Ron Miller

RealityEngines.AI raises $5.25M seed round to make ML easier for enterprises

RealityEngines.AI, a research startup that wants to help enterprises make better use of AI, even when they only have incomplete data, today announced that it has raised a $5.25 million seed funding round. The round was led by former Google CEO and Chairman Eric Schmidt and Google founding board member Ram Shriram. Khosla Ventures, Paul Buchheit, Deepchand Nishar, Elad Gil, Keval Desai, Don Burnette and others also participated in this round.

The fact that the service was able to raise from this rather prominent group of investors clearly shows that its overall thesis resonates. The company, which doesn’t have a product yet, tells me that it specifically wants to help enterprises make better use of the smaller and noisier datasets they have and provide them with state-of-the-art machine learning and AI systems that they can quickly take into production. It also aims to provide its customers with systems that can explain their predictions and are free of various forms of bias, something that’s hard to do when the system is essentially a black box.

As RealityEngines CEO Bindu Reddy, who was previously the head of products for Google Apps, told me the company plans to use the funding to build out its research and development team. The company, after all, is tackling some of the most fundamental and hardest problems in machine learning right now — and that costs money. Some, like working with smaller datasets, already have some available solutions like generative adversarial networks that can augment existing datasets and that RealityEngines expects to innovate on.

Reddy is also betting on reinforcement learning as one of the core machine learning techniques for the platform.

Once it has its product in place, the plan is to make it available as a pay-as-you-go managed service that will make machine learning more accessible to large enterprise, but also to small and medium businesses, which also increasingly need access to these tools to remain competitive.


By Frederic Lardinois

Verified Expert Growth Marketing Agency: Growth Pilots

Growth Pilots is one of the more exclusive performance marketing agencies in San Francisco, but they know how to help high-growth startups excel at paid marketing. CEO and founder Soso Sazesh credits his personal experiences as an entrepreneur along with his team’s deep understanding of high-growth company needs and challenges as to what sets Growth Pilots apart. Whether you’re a founder of a seed or Series D stage startup, learn more about Growth Pilots’ approach to growth and partnerships.

Advice to early-stage founders

“I think a lot of times, especially at the early stage, founders don’t have a lot of time so they’re willing to find the path of least resistance to get their paid acquisition channels up and running. If things are not properly set up and managed, this can lead to a false negative in terms of writing off a channel’s effectiveness or scalability. It’s worth talking to an expert, even if it’s just for advice, to ensure you don’t fall into this trap.”

On Growth Pilots’ operations

[pullquote align=”right” author=”Guillaume McIntyre, SF, Head of Acquisition Marketing, Instacart”]“They have good business acumen, move fast and work as an extension to your internal team.”[/pullquote]
“Something we pride ourselves on is working with relatively few clients at a time so we can really focus all of our team’s efforts and energy on doing the highest quality work. Each of our team members works on a maximum of two to three accounts, and therefore they’re able to get very invested in each client’s business and integrated into their team. We really try to simulate the internal team dynamics as much as possible and pairing that with our external capabilities and expertise.”

Below, you’ll find the rest of the founder reviews, the full interview, and more details like pricing and fee structures. This profile is part of our ongoing series covering startup growth marketing agencies with whom founders love to work, based on this survey and our own research. The survey is open indefinitely, so please fill it out if you haven’t already.


Interview with Growth Pilots Founder and CEO Soso Sazesh

Yvonne Leow: Tell me a little bit about your background and how you got into growth.

Soso Sazesh: I grew up in northern Minnesota where there is no tech industry whatsoever and then after high school, I came out to Silicon Valley and got exposed to the epicenter of the technology industry. I became very interested in startups and hustled to find startup internships so I could get experience and learn how they operated.

After a couple of startup internships, I got accepted to UC Berkeley and that gave me even more exposure to the startup ecosystem with all of the startup events and resources that UC Berkeley had to offer. I worked on a couple of startup projects while I was at UC Berkeley, and I taught myself scrappy product management and how to get software built using contract developers.

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As I was graduating, I had just launched my second startup project and it was growing organically but very slowly, and I realized I didn’t know how to acquire users. So I joined an SEM agency and that’s where I learned and fell in love with digital marketing. I helped companies successfully acquire users at scale using Google AdWords and finally solved for the missing skills I needed. After a couple of years, I ventured off to try my hand at starting a company again, this time with more experience and a co-founder.

We went through the AngelPad accelerator and raised a small round of capital – what would be called a pre-seed round nowadays. It was an eye-opening experience. I gained a lot of appreciation for what it meant to be a startup operator hustling to build a product people wanted and trying to acquire customers.

Startups are a roller coaster and we had a lot of ups and downs. We ultimately we’re not able to raise our next round of funding due to lack of traction and decided to shut the company down. As we were winding down, people in my network started coming to me looking for help with their digital marketing channels.

I started consulting for a few startups and identified an interesting opportunity, which was that very few startups knew how to do paid acquisition well and very few agencies were well-suited to work with startups. There was a huge gap in the market.

Some of these founders would come to me after trying to get paid acquisition to work on their own, but they didn’t have the time or expertise to do it properly. Some of them would hire an agency and not see results, because most agencies don’t understand the needs and grow-or-die nature of fast-moving startups. These agencies wouldn’t allocate the time and resources needed to really understand these startups and work closely with them to make their paid channels work.

So that’s exactly what I did and I was able to achieve results for them. I combined my previous expertise as a digital marketer with my recent startup operator experience and this allowed me to successfully help the startups I was consulting for. Due to the network effects in the startup community, I soon had more companies who wanted to work with me than I could take on alone and that’s what led me to start Growth Pilots.

Yvonne Leow: Awesome. How does Growth Pilots differentiate itself from other agencies?

Soso Sazesh: Growth Pilots is “the” performance marketing agency for high-growth companies. We’ve worked with over 120 venture-backed companies over the past five and a half years, and we have really tailored our service offering around the unique needs and challenges of high-growth companies as they move from stage to stage. We’ve had this internal framework that breaks down paid acquisition needs based on company stage.

The first is what we call the early stage. At the early stage, companies are looking to establish and validate their paid marketing channels. These companies are typically seed stage or Series A startups looking to find channels that allow them to hit their metrics to achieve their goals for their next round of funding. These companies require a lot of time and attention, which is a bit paradoxical because their budgets are not very large.

The second stage is what we call the scaling stage. This is when companies are trying to achieve escape velocity and growth matters above everything else. This typically happens at the Series A through Series C stage. Their business model is working and ideally within sight of positive unit economics if not already there, but the main focus is acquiring customers at the fastest rate possible and less so on efficiency or profitability. This stage requires all hands on deck and non-stop testing and optimization to squeeze out as much velocity as possible from each channel. The stakes are very high at this stage and category-leading companies often emerge here.

Finally is the late stage. These companies are typically Series C or Series D and beyond and preparing for an exit or IPO. Growth often becomes slightly less important at this stage and the focus shifts to efficiency and improved unit economics. Optimization becomes even more critical at this stage and measurement and attribution get a lot more sophisticated to fully measure the impact of the paid channels.

The needs of companies are vastly different at each of these stages. Our focus is on helping companies achieve their goals within each stage and helping them move to the next stage.

Yvonne Leow: Cool. If I’m a founder and I’d like to work with Growth Pilots, what can I expect are our next steps?

Soso Sazesh: The first step is understanding the business and assessing if there’s a mutual fit. We’re very selective about the companies we take on because over the course of the five and a half years we’ve been able to establish which business models and verticals are conducive to paid marketing success.

For instance, marketplaces, e-commerce, B2B SaaS, mobile apps, and other business models where there is a transactional component is typically a good candidate for paid acquisition. We want to know what the goals are and we want to be able to confidently say that we believe we can achieve the goals at hand. If we can’t say that, we won’t take the company on.

Step two is determining what stage of our framework the company falls into and what the opportunity looks like. If it’s an early stage company, it’s more about assessing the product, the market, and how reachable their target customers are online.

For scaling-stage and late-stage companies that are already up and running, we’ll dive into their current accounts and assess what the opportunity looks like and put together a strategy proposal based on our findings and outlook.

Yvonne Leow: What’s the typical length for each project or partnership?

Soso Sazesh: We’re not project-based so when a company comes to work with us we effectively become an extension of their marketing team. There’s no set duration. We’ve worked with some companies for five years and some companies we’ve worked with for 12 months.

If we work with a company less than 12 months, something is wrong and we probably shouldn’t have taken that company on as a client but you don’t always know how things will play out. Overall our goal is to work with companies in a long-term capacity as an integrated partner.  Something we pride ourselves on is working with relatively few clients at a time so we can really focus all of our team’s efforts and energy into doing the highest quality work.

Each of our team members only works on a maximum of two to three accounts, and therefore they’re able to get very invested in each client’s business and integrated into their team. We really try to simulate the internal team dynamics as much as possible while balancing and pairing that with our external capabilities and expertise.

Yvonne Leow: Are you at the point in your experience that you can apply certain growth strategies and guarantee success?

Soso Sazesh: Guarantee is a tough word, but having worked with more than 120 startups we are definitely at the point where we have enough data points where we can look at a given business and assess the viability of whether they’ll likely see success on paid channels. Success being a combination of scale and efficiency.

Yvonne Leow: Can you talk a little bit about how you and your team assess that?

Soso Sazesh: The first things we look at are business model, product quality, and whether or not product market fit exists or is likely to be achieved. Even a great business model in a large market combined with a poor product or lack of product market fit is unlikely to succeed with paid acquisition. In the absence of having a live product, or if a company is too early to assess product-market fit, we look at other data points that we have found to be good indicators of viability. Some of these include competitor success with paid marketing, the founders’ backgrounds, amount of capital raised, and who their investors are.

Yvonne Leow: What were some of your greatest lessons learned when you started Growth Pilots?

Soso Sazesh: In the early days of Growth Pilots, there was so much activity and growth that we ignored important things like team infrastructure and people operations. We saw the effects of this in the form of team morale taking a hit and people not seeing a future with us. We eventually took notice and course corrected by investing heavily in people operations and employee development. In an ideal world, we would have done this much earlier.

Another interesting reflection is how critical the work we do is. I think this is what a lot of agencies get wrong. You need the commitment to work with startups. You can’t be one foot in and one foot out when a company may live or die by the work you are doing. A lot of the companies that we work with explicitly outline what goals they need to hit in order to raise their next round of funding and it becomes very clear what part we play in that.

Yvonne Leow: What advice would you give to early-stage founders who are deciding whether or not to work with an agency?

Soso Sazesh: When you work with an agency it’s really important to have clear goals and expectations established up front. A lot of times early-stage companies hire agencies, and agencies will gladly take their money, but the agency isn’t really investing the time that’s needed to get results. So asking “What does it look like to work with your agency? Who’s going to be working on my account? How much attention can I expect to receive?” Those types of questions are really important to clarify and especially at the early stage.

Yvonne Leow: What’s a common mistake you see founders make when it comes to growth?

Soso Sazesh: The most common mistake I see is not doing the upfront work and investment required to get optimal results with paid acquisition. A lot of times you see the founder mentality of move fast and figure things out later kicks in, but this can be dangerous when it comes to paid marketing when you’re directly paying for traffic and customers. This leads to companies not seeing the performance and scalability that they actually could and it contributes to the negative perception of channels like Google Ads and Facebook Ads. VCs, for example, love to bash paid marketing channels as being too expensive or too saturated. There is certainly some truth to the channels getting more crowded but at the same time, you would be surprised how poorly setup and managed some of the accounts are that we look at, including companies that have raised tens to hundreds of millions of dollars.

Yvonne Leow: Thanks for sharing. Last question: what is your payment structure?

Soso Sazesh: We charge based on a tiered percentage of ad spend managed with a monthly minimum retainer fee of $10,000 at the lowest level. Our minimum fee is frankly much higher than a lot of other agencies and that’s by design. This goes back to what I was saying before about early-stage companies requiring a disproportionate amount of work relative to their budgets in order to be successful with paid acquisition. We apply a lot more focus and resources than other agencies and this allows us to achieve success where other agencies can’t. The tradeoff is that we need to charge more to deliver this higher quality of service.


Founder Recommendations:

“They helped me raise $5M+ and ran one of the most successful pre-order campaigns in 2017.” – Roderick De Rode, Venice, CA, Founder & CEO, Spinn, Inc.

“They have helped us dramatically accelerate our growth and act as an extension of our internal team.” – Digital Advertising Manager in Corte Madera

“They helped us establish a low customer acquisition cost before we were even able to ship product and help us convert site visitors to customers when we had influxes of traffic from press we received.” – Stephen Kuhl, NYC, Co-founder & CEO, Burrow

“Largely instrumental in the way we optimize and measure success of our mobile app install campaigns.” – User Acquisition & Growth Strategist in Denver

“Growth Pilots is a great partner. I on-boarded them to build out, optimize and scale all paid search and social campaigns for Instacart. In a few months, paid search and social became some of our best performing channels. They have good business acumen, move fast and work as an extension to your internal team.” – Guillaume McIntyre, SF,  Head of Acquisition Marketing, Instacart


By Yvonne Leow

Qubole launches Quantum, its serverless database engine

Qubole, the data platform founded by Apache Hive creator and former head of Facebook’s Data Infrastructure team Ashish Thusoo, today announced the launch of Quantum, its first serverless offering.

Qubole may not necessarily be a household name, but its customers include the likes of Autodesk, Comcast, Lyft, Nextdoor and Zillow . For these users, Qubole has long offered a self-service platform that allowed their data scientists and engineers to build their AI, machine learning and analytics workflows on the public cloud of their choice. The platform sits on top of open-source technologies like Apache Spark, Presto and Kafka, for example.

Typically, enterprises have to provision a considerable amount of resources to give these platforms the resources they need. These resources often go unused and the infrastructure can quickly become complex.

Qubole already abstracts most of this away and offering what is essentially a serverless platform. With Quantum, however, it is going a step further by launching a high-performance serverless SQP engine that allows users to query petabytes of data with nothing else by ANSI-SQL, given them the choice between using a Presto cluster or a serverless SQL engine to run their queries, for example.

The data can be stored on AWS, Azure, Google cloud or Oracle Cloud and users won’t have to set up a second data lake or move their data to another platform to use the SQL engine. Quantum automatically scales up or down as needed, of course, and users can still work with the same metastore for their data, no matter whether they choose the clustered or serverless option. Indeed, Quantum is essentially just another SQL engine without Qubole’s overall suite of engines.

Typically, Qubole charges enterprises by compute minutes. When using Quantum, the company uses the same metric, but enterprises pay for the execution time of the query. “So instead of the Qubole compute units being associated with the number of minutes the cluster was up and running, it is associated with the Qubole compute units consumed by that particular query or that particular workload, which is even more fine-grained ” Thusoo explained. “This works really well when you have to do interactive workloads.”

Thusoo notes that Quantum is targeted at analysts who often need to perform interactive queries on data stored in object stores. Qubole integrates with services like Tableau and Looker (which Google is now in the process of acquiring). “They suddenly get access to very elastic compute capacity, but they are able to come through a very familiar user interface,” Thusoo noted.

 


By Frederic Lardinois

With Tableau and Mulesoft, Salesforce gains full view of enterprise data

Back in the 2010 timeframe, it was common to say that content was king, but after watching Google buy Looker for $2.6 billion last week and Salesforce nab Tableau for $15.7 billion this morning, it’s clear that data has ascended to the throne in a business context.

We have been hearing about Big Data for years, but we’ve probably reached a point in 2019 where the data onslaught is really having an impact on business. If you can find the key data nuggets in the big data pile, it can clearly be a competitive advantage, and companies like Google and Salesforce are pulling out their checkbooks to make sure they are in a position to help you out.

While Google, as a cloud infrastructure vendor, is trying to help companies on its platform and across the cloud understand and visualize all that data, Salesforce as a SaaS vendor might have a different reason — one that might surprise you — given that Salesforce was born in the cloud. But perhaps it recognizes something fundamental. If it truly wants to own the enterprise, it has to have a hybrid story, and with Mulesoft and Tableau, that’s precisely what it has — and why it was willing to spend around $23 billion to get it.

Making connections

Certainly, Salesforce chairman Marc Benioff has no trouble seeing the connections between his two big purchases over the last year. He sees the combination of Mulesoft connecting to the data sources and Tableau providing a way to visualize as a “beautiful thing.”


By Ron Miller

Salesforce is buying data visualization company Tableau for $15.7B in all-stock deal

On the heels of Google buying analytics startup Looker last week for $2.6 billion, Salesforce today announced a huge piece of news in a bid to step up its own work in data visualization and (more generally) tools to help enterprises make sense of the sea of data that they use and amass: Salesforce is buying Tableau for $15.7 billion in an all-stock deal.

The latter is publicly traded and this deal will involve shares of Tableau Class A and Class B common stock getting exchanged for 1.103 shares of Salesforce common stock, the company said, and so the $15.7 billion figure is the enterprise value of the transaction, based on the average price of Salesforce’s shares as of June 7, 2019.

This is a huge jump on Tableau’s last market cap: it was valued at $10.79 billion at close of trading Friday, according to figures on Google Finance. (Also: trading has halted on its stock in light of this news.)

The two boards have already approved the deal, Salesforce notes. The two companies’ management teams will be hosting a conference call at 8am Eastern and I’ll listen in to that as well to get more details.

This is a huge deal for Salesforce as it continues to diversify beyond CRM software and into deeper layers of analytics.

The company reportedly worked hard to — but ultimately missed out on — buying LinkedIn (which Microsoft picked up instead), and while there isn’t a whole lot in common between LinkedIn and Tableau, this deal is also about extending engagement with the customers that Salesforce already has.

This also looks like a move designed to help bulk up against Google’s move to buy Looker, announced last week, although I’d argue that analytics is a big enough area that all major tech companies that are courting enterprises are getting their ducks in a row in terms of squaring up to stronger strategies (and products) in this area. It’s unclear whether (and if) the two deals were made in response to each other.

“We are bringing together the world’s #1 CRM with the #1 analytics platform. Tableau helps people see and understand data, and Salesforce helps people engage and understand customers. It’s truly the best of both worlds for our customers–bringing together two critical platforms that every customer needs to understand their world,” said Marc Benioff, Chairman and co-CEO, Salesforce, in a statement. “I’m thrilled to welcome Adam and his team to Salesforce.”

Tableau has about 86,000 business customers including Charles Schwab, Verizon (which owns TC), Schneider Electric, Southwest and Netflix. Salesforce said it will operate independently and under its own brand post-acquisition. It will also remain headquartered in Seattle, WA, headed by CEO Adam Selipsky along with others on the current leadership team.

That’s not to say, though, that the two will not be working together: on the contrary, Salesforce is already talking up the possibilities of expanding what the company is already doing with its Einstein platform (launched back in 2016, Einstein is the home of all of Salesforce’s AI-based initiatives); and with “Customer 360”, which is the company’s product and take on omnichannel sales and marketing. The latter is an obvious and complementary product home, given that one huge aspect of Tableau’s service is to provide “big picture” insights.

“Joining forces with Salesforce will enhance our ability to help people everywhere see and understand data,” said Selipsky. “As part of the world’s #1 CRM company, Tableau’s intuitive and powerful analytics will enable millions more people to discover actionable insights across their entire organizations. I’m delighted that our companies share very similar cultures and a relentless focus on customer success. I look forward to working together in support of our customers and communities.”

“Salesforce’s incredible success has always been based on anticipating the needs of our customers and providing them the solutions they need to grow their businesses,” said Keith Block, co-CEO, Salesforce. “Data is the foundation of every digital transformation, and the addition of Tableau will accelerate our ability to deliver customer success by enabling a truly unified and powerful view across all of a customer’s data.”

More to come as we learn it. Refresh for updates.

 


By Ingrid Lunden

Daily Crunch: Google is acquiring Looker

The Daily Crunch is TechCrunch’s roundup of our biggest and most important stories. If you’d like to get this delivered to your inbox every day at around 9am Pacific, you can subscribe here.

1. Google to acquire analytics startup Looker for $2.6 billion

Google Cloud has been mired in third place in the cloud infrastructure market, and grabbing Looker gives it an analytics company with a solid track record. The startup has raised more than $280 million in funding.

Like other big acquisitions, this deal is subject to regulatory approval, but it is expected to close later this year if all goes well.

2. Uber Copter offers on-demand JFK helicopter service for top-tier users

Uber is adding regular helicopter air service with Uber Copter — a new service line launched today that will provide on-demand transportation from Lower Manhattan to JFK airport for, on average, between $200 and $225 per person. That price includes car service to and from the helipad at each end.

3. In trying to clear ‘confusion’ over anti-harassment policy, YouTube creates more confusion

After a series of tweets that made it seem as if YouTube was ignoring its own anti-harassment policies, the video platform published a blog post in an attempt to clarify its stance. Instead, the post raises more questions about YouTube’s commitment to fighting harassment and hate speech on its platform.

4. Sources: Bird is in talks to acquire scooter startup Scoot

The stage of the negotiations is not clear, but it sounds like the deal is not closed. Both Scoot and Bird declined to comment.

5. Apple’s global accessibility head on the company’s new features for iOS 13 and macOS Catalina

“One of the things that’s been really cool this year is the [accessibility] team has been firing on [all] cylinders across the board,“ Apple’s Sarah Herrlinger told us. “There’s something in each operating system and things for a lot of different types of use cases.”

6. A first look at Amazon’s new delivery drone

The drone has an ingenious hexagonal hybrid design with very few moving parts, and Amazon says it’s chock-full of sensors and a suite of compute modules to keep the drone safe.

7. This year’s Computex was a wild ride with dueling chip releases, new laptops and 467 startups

Computex picked up the pace this year, with dueling chip launches by rivals AMD and Intel and a slew of laptop releases. (Extra Crunch membership required.)


By Anthony Ha

Google to acquire analytics startup Looker for $2.6 billion

Google made a big splash this morning when it announced it’s going to acquire Looker, a hot analytics startup that’s raised over $280 million. It’s paying $2.6 billion for the privilege and adding the company to Google Cloud.

Thomas Kurian, the man who was handed the reigns to Google Cloud at the end of last year see the crucial role data plays today for organizations, especially as they move to the cloud. “The combination of Google Cloud and Looker will enable customers to harness data in new ways to drive their digital transformation,” Kurian said in a statement.

Google Cloud has been mired in third place in the cloud infrastructure market, and grabbing Looker gives it an analytics company with a solid track record. The last time I spoke to Looker it was grabbing a hefty $103 million in funding on a $1.6 billion valuation. Today’s price is nice even billion over that.

As I wrote at the time, Looker’s CEO Frank Bien wasn’t all that interested in bragging about valuations though. “He reported that the company has 1,600 customers now and just crossed the $100 million revenue run rate, a significant milestone for any enterprise SaaS company. What’s more, Bien reports revenue is still growing 70 percent year over year, so there’s plenty of room to keep this going.”

Perhaps, it’s not a coincidence that Google went after Looker as the two companies had a strong existing partnership and 350 common customers, according to Google.

Per usual this deal is going to be subject to regulatory approval, but the deal is expected to close later this year if all goes well.


By Ron Miller

Google Cloud gets capacity reservations, extends committed use discounts beyond CPUs

Google Cloud made two significant pricing announcements today. Those, you’ll surely be sad to hear, don’t involve the usual price drops for compute and storage. Instead, Googe Cloud today announced that it is extending its committed use discounts, which give you a significant discount when you commit to using a certain number of resources for one or three years, to GPUs, Cloud TPU Pods and local SSDs. In return for locking yourself into a long-term plan, you can get discounts of 55 percent off on-demand prices.

In addition, Google launching a capacity reservation system for Compute Engine that allows users to reserve resources in a specific zone for later use to ensure that they have guaranteed access to these resources when needed.

At first glance, capacity reservations may seem like a weird concept in the cloud. The promise of cloud computing, after all, is that you can just spin machines up and down at will — and never really have to think about availability.

So why launch a reservation system? “This is ideal for use cases like disaster recovery or peace of mind, so a customer knows that they have some extra resources, but also for retail events like Black Friday or Cyber Monday,” Google senior product manager Manish Dalwadi told me.

These users want to have absolute certainty that when they need the resources, they will be available to them. And while many of us think of the large clouds as having a virtually infinite amount of virtual machines available at any time, some machine types may occasionally only be available in a different availability zone, for example, that is not the same zone as where the rest of your compute resources are.

Users can create or delete reservations at any time and any existing discounts — including sustained use discounts and committed use discounts — will be applied automatically.

As for committed use discounts, it’s worth noting that Google always took a pretty flexible approach to this. Users don’t have to commit to using a specific machine type for three years, for example. Instead, they commit to using a specific number of CPU cores and memory, for example.

“What we heard from customers was that other commit models are just too inflexible and their utilization rates were very low, like 70, 60 percent utilization,” Google product director Paul Nash told me. “So one of our design goals with committed use discounts was to figure out how we could provide something that gives us the capacity planning signal that we need, provides the same amount of discounts that we want to pass on to customers, but do it in a way that customers actually feel like they are getting a great deal and so that they don’t have to hyper-manage these things in order to get the most out of them.”

Both the extended committed use discounts and the new capacity reservation system for Compute Engine resources are now live in the Google Cloud.


By Frederic Lardinois

How Kubernetes came to rule the world

Open source has become the de facto standard for building the software that underpins the complex infrastructure that runs everything from your favorite mobile apps to your company’s barely usable expense tool. Over the course of the last few years, a lot of new software is being deployed on top of Kubernetes, the tool for managing large server clusters running containers that Google open sourced five years ago.

Today, Kubernetes is the fastest growing open-source project and earlier this month, the bi-annual KubeCon+CloudNativeCon conference attracted almost 8,000 developers to sunny Barcelona, Spain, making the event the largest open-source conference in Europe yet.

To talk about how Kubernetes came to be, I sat down with Craig McLuckie, one of the co-founders of Kubernetes at Google (who then went on to his own startup, Heptio, which he sold to VMware); Tim Hockin, another Googler who was an early member on the project and was also on Google’s Borg team; and Gabe Monroy, who co-founded Deis, one of the first successful Kubernetes startups, and then sold it to Microsoft, where he is now the lead PM for Azure Container Compute (and often the public face of Microsoft’s efforts in this area).

Google’s cloud and the rise of containers

To set the stage a bit, it’s worth remembering where Google Cloud and container management were five years ago.


By Frederic Lardinois

Serverless and containers: Two great technologies that work better together

Cloud native models using containerized software in a continuous delivery approach could benefit from serverless computing where the cloud vendor generates the exact amount of resources required to run a workload on the fly. While the major cloud vendors have recognized this and are already creating products to abstract away the infrastructure, it may not work for every situation in spite of the benefits.

Cloud native put simply involves using containerized applications and Kubernetes to deliver software in small packages called microservices. This enables developers to build and deliver software faster and more efficiently in a continuous delivery model. In the cloud native world, you should be able to develop code once and run it anywhere, on prem or any public cloud, or at least that is the ideal.

Serverless is actually a bit of a misnomer. There are servers underlying the model, but instead of dedicated virtual machines, the cloud vendor delivers exactly the right number of resources to run a particular workload for the right amount of time and no more.

Nothing is perfect

Such an arrangement would seem to be perfectly suited to a continuous delivery model, and while vendors have recognized the beauty of such an approach, as one engineer pointed out, there is never a free lunch in processes that are this complex, and it won’t be a perfect solution for every situation.

Arpana Sinha, director of product management at Google says the Kubernetes community has really embraced the serveless idea, but she says that it is limited in its current implementation, delivered in the form of functions with products like AWS Lambda, Google Cloud Functions and Azure Functions.

“Actually, I think the functions concept is a limited concept. It is unfortunate that that is the only thing that people associate with serverless,” she said.

She says that Google has tried to be more expansive in its definition “It’s basically a concept for developers where you are able to seamlessly go from writing code to deployment and the infrastructure takes care of all of the rest, making sure your code is deployed in the appropriate way across the appropriate, most resilient parts of the infrastructure, scaling it as your app needs additional resources, scaling it down as your traffic goes down, and charging you only for what you’re consuming,” she explained

But Matt Whittington, senior engineer on the Kubernetes Team at Atlassian says, while it sounds good in theory, in practice fully automated infrastructure could be unrealistic in some instances. “Serverless could be promising for certain workloads because it really allows developers to focus on the code, but it’s not a perfect solution. There is still some underlying tuning.”

He says you may not be able to leave it completely up to the vendor unless there is a way to specify the requirements for each container such as instructing them you need a minimum container load time, a certain container kill time or perhaps you need to deliver it a specific location. He says in reality it won’t be fully automated, at least while developers fiddle with the settings to make sure they are getting the resources they need without over-provisioning and paying for more than they need.

Vendors bringing solutions

The vendors are putting in their two cents trying to create tools that bring this ideal together. For instance, Google announced a service called Google Cloud Run at Google Cloud Next last month. It’s based on the open source Knative project, and in essence combines the goodness of serverless for developers running containers. Other similar services include AWS Fargate and Azure Container Instances, both of which are attempting to bring together these two technologies in a similar package.

In fact, Gabe Monroy, partner program manager at Microsoft, says Azure Container Instances is designed to solve this problem without being dependent on a functions-driven programming approach. “What Azure Container Instances does is it allows you to run containers directly on the Azure compute fabric, no virtual machines, hypervisor isolated, pay-per-second billing. We call it serverless containers,” he said.

While serverless and containers might seem like a good fit, as Monroy points there isn’t a one size fits all approach to cloud native technologies, whatever the approach may be. Some people will continue to use a function-driven serverless approach like AWS Lambda or Azure Functions and others will shift to containers and look for other ways to bring these technologies together. Whatever happens, as developer needs change, it is clear the open source community and vendors will respond with tools to help them. Bringing serverless and containers is together is just one example of that.


By Ron Miller

Microsoft makes a push for service mesh interoperability

Services meshes. They are the hot new thing in the cloud native computing world. At Kubecon, the bi-annual festival of all things cloud native, Microsoft today announced that it is teaming up with a number of companies in this space to create a generic service mesh interface. This will make it easier for developers to adopt the concept without locking them into a specific technology.

In a world where the number of network endpoints continues to increase as developers launch new micro-services, containers and other systems at a rapid clip, they are making the network smarter again by handling encryption, traffic management and other functions so that the actual applications don’t have to worry about that. With a number of competing service mesh technologies, though, including the likes of Istio and Linkerd, developers currently have to chose which one of these to support.

“I’m really thrilled to see that we were able to pull together a pretty broad consortium of folks from across the industry to help us drive some interoperability in the service mesh space,” Gabe Monroy, Microsoft’s lead product manager for containers and the former CTO of Deis, told me. “This is obviously hot technology — and for good reasons. The cloud-native ecosystem is driving the need for smarter networks and smarter pipes and service mesh technology provides answers.”

The partners here include Buoyant, HashiCorp, Solo.io, Red Hat, AspenMesh, Weaveworks, Docker, Rancher, Pivotal, Kinvolk and VMWare. That’s a pretty broad coalition, though it notably doesn’t include cloud heavyweights like Google, the company behind Istio, and AWS.

“In a rapidly evolving ecosystem, having a set of common standards is critical to preserving the best possible end-user experience,” said Idit Levine, founder and CEO of Solo.io. “This was the vision behind SuperGloo – to create an abstraction layer for consistency across different meshes, which led us to the release of Service Mesh Hub last week. We are excited to see service mesh adoption evolve into an industry level initiative with the SMI specification.”

For the time being, the interoperability features focus on traffic policy, telemetry and traffic management. Monroy argues that these are the most pressing problems right now. He also stressed that this common interface still allows the different service mesh tools to innovate and that developers can always work directly with their APIs when needed. He also stressed that the Service Mesh Interface (SMI), as this new specification is called, does not provide any of its own implementations of these features. It only defines a common set of APIs.

Currently, the most well-known service mesh is probably Istio, which Google, IBM and Lyft launched about two years ago. SMI may just bring a bit more competition to this market since it will allow developers to bet on the overall idea of a service mesh instead of a specific implementation.

In addition to SMI, Microsoft also today announced a couple of other updates around its cloud-native and Kubernetes services. It announced the first alpha of the Helm 3 package manager, for example, as well as the 1.0 release of its Kubernetes extension for Visual Studio Code and the general availability of its AKS virtual nodes, using the open source Virtual Kubelet project.

 


By Frederic Lardinois