Author: Paul Wallbank

  • Google expands its campus program

    Google expands its campus program

    One of the reasons for the success of London’s Silicon Roundabout neighbourhood was the Google Campus that provided a drop in centre and community venue for the growing tech hub.

    It turns out the success of London’s Google Campus can be replicated, as shown by the Tel Aviv outpost having similar results.

    As a consequence Google are now opening new campuses in Warsaw, São Paulo, Seoul and Madrid.

    Whether these cities will have the same success as London and Tel Aviv, both had a thriving tech start up community before their Google Campuses opened, remains to be soon.

    One thing is for sure, we’ll see other cities’ governments and tech communities lobbying Google to base a Campus in their tech neighbourhood. It may be worthwhile they have a look at the London one to see what works and how they can set their own local hub.

    Similar posts:

  • Conglomerates fall out of fashion

    Conglomerates fall out of fashion

    After the announcement earlier this week that HP will split into two, now Bloomberg reports Symantec is considering splitting, this comes after the news that PayPal is being carved off eBay and that Yum foods is looking at divesting some  of its Chinese assets.

    It looks like we’re moving into a period where conglomorates are out of fashion; that’s good news for lawyers and consultants advising the companies however it will be worth watching to see what this means for customers, employees and shareholders.

    That HP is reportedly shedding 55,000 jobs says some of these conglomerates were chronically overstaffed so it might be good news for the stockholders of the split companies.

    Either way, it’s always worth remembering that conglomerates come in and out of fashion in the business world.

     

    Similar posts:

  • Adrift in the data lake

    Adrift in the data lake

    Last week Yahoo! closed down their directory pages ending one of the defining services of the 1990s internet and showing how the internet has changed since the first dot com boom.

    The Yahoo! Directory was victim of a fundamental change in how we manage data as Google showed it wasn’t necessary to tag and label every piece of information before it could be used.

    Yahoo!’s Directory was a classic case of applying old methods to new technologies – in this case carrying out a librarian’s function of cataloguing and categorising every web page.

    One problem with that way of saving information is you need to know part of the answer before you can start searching; you need to have some idea of what category your query comes under or the name of the business or person you’re looking for.

    That pan was exploited by the Yellow Pages where licensees around the world harvested a healthy cash flow from businesses forced to list under a dozen different categories to make sure prospective customers found them.

    With the arrival of Google that way of structuring information came to an end as Sergey Brin and Larry Page’s smart algorithm showed it wasn’t necessary to pigeonhole information into highly structured databases.

    Unstructured data

    Rather than being structured, data is now becoming ‘unstructured’ and instead of employing an army of clerks to categorise information it’s now the job of computers to analyse that raw information and pick out what we need for our businesses and lives.

    As information pours into companies from increasingly diverse sources, a flood that’s becoming so great it’s being referred to as the ‘data lake’, it’s become clear the battle to structure data is lost.

    At the Splunk Conference in Las Vegas this week, the term ‘data lake’ is being used a lot as the company explains its technology for analysing business information.

    Splunk, along with services like IBM’s Watson and Tableau Software, is one the companies capitalising on businesses’ need to manage unstructured data by giving customers the tools to analyse their information without having first to shoehorn it into a database.

    “Thanks to Google we got to look at data a different way,” says Splunk’s CEO and Chairman Godfrey Sullivan. “You don’t have to know the question before you start the search.”

    Diving into the data lake

    It’s always dangerous applying simple labels to computing technologies but some terms, like ‘Cloud Computing’, don’t do a bad job of describing the principles involved and so it is with the ‘data lake’.

    Rather than a nice, orderly world where everything can be pigeonholed, we know have a fluid environment where it wouldn’t be possible to label everything even if we wanted to. A lake is a good description of the mass of data pouring into our lives.

    The web was an early example of having to manage that data lake and Google showed how it could be done. Now it’s the turn of other companies to apply the principles to business.

    Google fatally damaged both Yahoo! and the Yellow Pages, other companies that are stuck in the age of structured data are going to find the future equally dismal. Don’t drown in that data lake.

    Paul travelled to Las Vegas as a guest of Splunk

    Similar posts:

    • No Related Posts
  • Breaking down old technology empires

    Breaking down old technology empires

    HP’s CEO Meg Whitman announced today that the company will be splitting in two with its Printer and PC division being carved away from its consulting services.

    The two new companies will be Hewlett Packard Enterprises and HP, the latter being the old printer and PC division.

    For HPs shareholders this split is a decade too late as the printer and PC division is in an industry where declining margins are the norm.

    It’s not hard to think though that both businesses are ultimately doomed, it wouldn’t be surprising to see the smouldering ruins of both companies being picked up by companies like India’s Wipro or China’s Lenovo in the not too distant future.

    That HP is divesting isn’t surprising as the trend is moving away from the big conglomerates model of the past decade; two weeks ago eBay announced it will be splitting its PayPal division and the float of Alibaba will almost certainly see Yahoo! begin to hive off businesses that have underperformed under their corporate umbrella.

    An era where the key to growth in the technology industries doesn’t involve buying competitors and startups to build online empire will leave the Silicon Valley greater fool business model somewhat lost. It might be time for a few venture capital and seed funds to think about their pivot.

    Similar posts:

    • No Related Posts
  • Riding China’s business pivot

    Riding China’s business pivot

    Three weeks ago Chinese e-commerce giant Alibaba triumphantly listed on the US NASDAQ stock market with a valuation of over two hundred billion dollars. It was a strong announcement to the world that Chinese companies have arrived as global competitors.

    A week later telecommunications vendor Huawei announced it was buying British internet of things darling Neul for £25 million as part of its proposed £1.3 billion investment the UK technology sector.

    Quietly last week Another NASDAQ listed Chinese company, computer manufacturer Lenovo completed its purchase of IBM’s mid market server business.

    Lenovo’s deal follows its purchase of IBMs PC division in 2005 that saw the iconic Thinkpad laptops become Lenovo products. Both deals tell us much about where the two companies see their respective futures.

    China’s great economic pivot

    These three big announcements by Chinese companies show how the economy of the Peoples’ Republic of China is pivoting just as other East Asian countries have over the past fifty years.

    Leading the example of the East Asian pivot is Japan who pioneered the model of starting as a cheap manufacturing labor source then steadily ground its way up the global value chain to being the leader in many fields.

    That model was copied by Taiwan, South Korea, Singapore and Hong Kong. It hasn’t worked everywhere as countries like Thailand, Malaysia and the Philippines have been caught in the ‘middle income trap’ that has seen their economies not move into the higher brackets.

    Racing up the development curve

    China’s mission with over a billion mouths to feed and keep politically content is to avoid the middle income trap and move into the higher brackets. With an aging population it has to do this far quicker than its successful neighbours.

    While Huawei along with car manufacturer Great Wall and white goods vendor Haier are following that established Japanese model, albeit rapidly accellerated, Lenovo and Alibaba are following radically different paths.

    Alibaba has the benefit of catering to a billion strong domestic market that’s leapfrogging the west in technology adoption. This gives the company a firm foundation for its global operations.

    With Lenovo, the sweeping up of the US technology sector’s crumbs is a strategy that sees them buy immediate market share and develop a global position that would take it another generation to do so under the Japanese model of organic expansion which companies like Honda, Toyota and Sony pioneered.

    The task ahead for the Chinese economy in moving up the economic value chain is immense and not without huge political, business and social risks. However as the economy ages, it’s a journey the country’s business and political leaders have to make.

    Recently China watcher Patrick Chovanec spoke on the Chinese pivot and warned that the changes will have major ramifications for the world economy, particularly for the commodity exporters — notably  Brazil, Australia and China — who provided the raw material for the country’s early economic expansion.

    Lenovo, Alibaba and Huawei are leading the change in the Chinese economy and how their strategies work will define business in the mid 21st Century.

    Similar posts:

    • No Related Posts