Click here to close now.




















Welcome!

Containers Expo Blog Authors: Elizabeth White, Samuel Scott, VictorOps Blog, Liz McMillan, Pat Romanski

Related Topics: Containers Expo Blog, API Journal

Containers Expo Blog: Article

Death by Virtualization: Microsoft and Yahoo

Story Appears and Disappears Like Dust in the Wind

The world of IT is becoming increasingly virtualized. Applications are ripped apart, deconstructed,  and broken into specific services that serve individuals on-demand in real time. It's much more difficult to forecast load balances on application servers and storage subsystems. New opportunities arise for companies to create analytical and monitoring software that enables IT managers to get a grip on a world that looks assymetric, stochastic, and in simple English, weird and confusing.

It seems that the flow of news has entered a similarly weird era, one that will stay with us forever more. Maybe the Internet really does change everything.

A case-in-point this week was the one-day Microsoft is buying Yahoo story. Although it broke in the very traditional "old media" Wall Street Journal, it quickly entered the house of mirrors that is the webosphere and blogosphere, and was quickly refuted. Or rather, quickly muted. After watching Yahoo's lagging stock surge 10 percent on the story, it behooved execs from both companies to say that if there were any talks, that these talks have now ended.

This was a virtual story with a virtual death. The story itself was never affirmed nor denied, and it flickered out before it had any traction. This was not a rumor, but it was also not a real story. There is a continuous stream of communications among technology companies large and small about who could potentially buy whom, what "synergies" may ensue, how strategies can be aligned, etc. Many restaurants in Silicon Valley and 100 other places would go out of business if they didn't serve as places for potential dealmakers to sit around, look important, and say important sounding stuff.

Some of the basics involving the potential Microsoft/Yahoo merger:

* Yahoo has a market cap north of $40 billion. This gives it a P/E ratio of 60.75, still very high by historical market standards. Yet shareholders have been screaming for months for CEO Terry Semel (pictured above) to take his already enormous feedings from the trough and head back to LA.

* Microsoft has about $34 billion in cash and short-term investments. Not that this deal would involve much if any cash, of course! But it's interesting to note that Yahoo's market cap exceeds even mighty Microsoft's ability to swallow it easily.

* Microsoft would get a company that has lots of traffic but an inability to monetize this traffic nearly as effectively as rival Google. (Yahoo's annual revenue is north of $6 billion, while Google has soared past $10 billion. Its much higher profitability compared to Yahoo gives it a market cap of $146 billion, or fully half of Microsoft, yet it's P/E ratio is 20 percent lower than that of Yahoo. Microsoft, which has become one of the big blue chips, has a staid old P/E in the 22 range.)

* Speaking of traffic numbers, Google has almost caught perennial number one Yahoo. One thought expressed during this week's virtual takoever story was that Microsoft's relatively weak traffic would be boosted by acquiring Yahoo's. Yet it turns out that MSN.com is now the number two site by some traffic measures. There are more metrics than measurements in the metric system (that's a pun, folks) with respect to Web traffic, but the question arises is how would Microsoft benefit by taking on what, by current industry standards, is an underperforming website company that has no natural "synergy" with Redmond?

I'll leave it to the PhD candidates to drill down into all the aspects of this question. And we can't rule out the possibility of an acquisition done on pure paranoia and hubris.

At least this story has some interesting aspects to it, virtual as it may be. By counter-example, I've been listening to straight-faced reporting of a $10 million bid on eBay for the original "General Lee" car from "The Dukes of Hazzard." By evening, the big had been withdrawn, surprise, surprise, yet the nattering nabobs of nonsensicalism continued to report this quark of a story as if it were a breakthrough in talks with North Korea.

It's a virtual news world...we just really live in it.

More Stories By Virtualization News

SYS-CON's Virtualization News Desk trawls the news sources of the world for the latest details of virtualization technologies, products, and market trends, and provides breaking news updates from the Virtualization Conference & Expo.

Comments (1) View Comments

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


Most Recent Comments
Virtualization News Desk 05/05/07 11:17:23 PM EDT

This was a virtual story with a virtual death. The story itself was never affirmed nor denied, and it flickered out before it had any traction. This was not a rumor, but it was also not a real story. There is a continuous stream of communications among technology companies large and small about who could potentially buy whom, what "synergies" may ensue, how strategies can be aligned, etc. Many restaurants in Silicon Valley and 100 other places would go out of business if they didn't serve as places for potential dealmakers to sit around, look important, and say important sounding stuff.

@ThingsExpo Stories
While many app developers are comfortable building apps for the smartphone, there is a whole new world out there. In his session at @ThingsExpo, Narayan Sainaney, Co-founder and CTO of Mojio, will discuss how the business case for connected car apps is growing and, with open platform companies having already done the heavy lifting, there really is no barrier to entry.
As more intelligent IoT applications shift into gear, they’re merging into the ever-increasing traffic flow of the Internet. It won’t be long before we experience bottlenecks, as IoT traffic peaks during rush hours. Organizations that are unprepared will find themselves by the side of the road unable to cross back into the fast lane. As billions of new devices begin to communicate and exchange data – will your infrastructure be scalable enough to handle this new interconnected world?
SYS-CON Events announced today that Micron Technology, Inc., a global leader in advanced semiconductor systems, will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Micron’s broad portfolio of high-performance memory technologies – including DRAM, NAND and NOR Flash – is the basis for solid state drives, modules, multichip packages and other system solutions. Backed by more than 35 years of technology leadership, Micron's memory solutions enable the world's most innovative computing, consumer,...
SYS-CON Events announced today that Pythian, a global IT services company specializing in helping companies leverage disruptive technologies to optimize revenue-generating systems, has been named “Bronze Sponsor” of SYS-CON's 17th Cloud Expo, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Founded in 1997, Pythian is a global IT services company that helps companies compete by adopting disruptive technologies such as cloud, Big Data, advanced analytics, and DevOps to advance innovation and increase agility. Specializing in designing, imple...
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
Consumer IoT applications provide data about the user that just doesn’t exist in traditional PC or mobile web applications. This rich data, or “context,” enables the highly personalized consumer experiences that characterize many consumer IoT apps. This same data is also providing brands with unprecedented insight into how their connected products are being used, while, at the same time, powering highly targeted engagement and marketing opportunities. In his session at @ThingsExpo, Nathan Treloar, President and COO of Bebaio, will explore examples of brands transforming their businesses by t...
Through WebRTC, audio and video communications are being embedded more easily than ever into applications, helping carriers, enterprises and independent software vendors deliver greater functionality to their end users. With today’s business world increasingly focused on outcomes, users’ growing calls for ease of use, and businesses craving smarter, tighter integration, what’s the next step in delivering a richer, more immersive experience? That richer, more fully integrated experience comes about through a Communications Platform as a Service which allows for messaging, screen sharing, video...
With the proliferation of connected devices underpinning new Internet of Things systems, Brandon Schulz, Director of Luxoft IoT – Retail, will be looking at the transformation of the retail customer experience in brick and mortar stores in his session at @ThingsExpo. Questions he will address include: Will beacons drop to the wayside like QR codes, or be a proximity-based profit driver? How will the customer experience change in stores of all types when everything can be instrumented and analyzed? As an area of investment, how might a retail company move towards an innovation methodolo...
The Internet of Things (IoT) is about the digitization of physical assets including sensors, devices, machines, gateways, and the network. It creates possibilities for significant value creation and new revenue generating business models via data democratization and ubiquitous analytics across IoT networks. The explosion of data in all forms in IoT requires a more robust and broader lens in order to enable smarter timely actions and better outcomes. Business operations become the key driver of IoT applications and projects. Business operations, IT, and data scientists need advanced analytics t...
A producer of the first smartphones and tablets, presenter Lee M. Williams will talk about how he is now applying his experience in mobile technology to the design and development of the next generation of Environmental and Sustainability Services at ETwater. In his session at @ThingsExpo, Lee Williams, COO of ETwater, will talk about how he is now applying his experience in mobile technology to the design and development of the next generation of Environmental and Sustainability Services at ETwater.
WebRTC has had a real tough three or four years, and so have those working with it. Only a few short years ago, the development world were excited about WebRTC and proclaiming how awesome it was. You might have played with the technology a couple of years ago, only to find the extra infrastructure requirements were painful to implement and poorly documented. This probably left a bitter taste in your mouth, especially when things went wrong.
SYS-CON Events announced today that IceWarp will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. IceWarp, the leader of cloud and on-premise messaging, delivers secured email, chat, documents, conferencing and collaboration to today's mobile workforce, all in one unified interface
As more and more data is generated from a variety of connected devices, the need to get insights from this data and predict future behavior and trends is increasingly essential for businesses. Real-time stream processing is needed in a variety of different industries such as Manufacturing, Oil and Gas, Automobile, Finance, Online Retail, Smart Grids, and Healthcare. Azure Stream Analytics is a fully managed distributed stream computation service that provides low latency, scalable processing of streaming data in the cloud with an enterprise grade SLA. It features built-in integration with Azur...
Too often with compelling new technologies market participants become overly enamored with that attractiveness of the technology and neglect underlying business drivers. This tendency, what some call the “newest shiny object syndrome,” is understandable given that virtually all of us are heavily engaged in technology. But it is also mistaken. Without concrete business cases driving its deployment, IoT, like many other technologies before it, will fade into obscurity.
Akana has announced the availability of the new Akana Healthcare Solution. The API-driven solution helps healthcare organizations accelerate their transition to being secure, digitally interoperable businesses. It leverages the Health Level Seven International Fast Healthcare Interoperability Resources (HL7 FHIR) standard to enable broader business use of medical data. Akana developed the Healthcare Solution in response to healthcare businesses that want to increase electronic, multi-device access to health records while reducing operating costs and complying with government regulations.
For IoT to grow as quickly as analyst firms’ project, a lot is going to fall on developers to quickly bring applications to market. But the lack of a standard development platform threatens to slow growth and make application development more time consuming and costly, much like we’ve seen in the mobile space. In his session at @ThingsExpo, Mike Weiner, Product Manager of the Omega DevCloud with KORE Telematics Inc., discussed the evolving requirements for developers as IoT matures and conducted a live demonstration of how quickly application development can happen when the need to comply wit...
The Internet of Everything (IoE) brings together people, process, data and things to make networked connections more relevant and valuable than ever before – transforming information into knowledge and knowledge into wisdom. IoE creates new capabilities, richer experiences, and unprecedented opportunities to improve business and government operations, decision making and mission support capabilities.
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at @ThingsExpo, James Kirkland, Red Hat's Chief Architect for the Internet of Things and Intelligent Systems, described how to revolutionize your archit...
MuleSoft has announced the findings of its 2015 Connectivity Benchmark Report on the adoption and business impact of APIs. The findings suggest traditional businesses are quickly evolving into "composable enterprises" built out of hundreds of connected software services, applications and devices. Most are embracing the Internet of Things (IoT) and microservices technologies like Docker. A majority are integrating wearables, like smart watches, and more than half plan to generate revenue with APIs within the next year.
Growth hacking is common for startups to make unheard-of progress in building their business. Career Hacks can help Geek Girls and those who support them (yes, that's you too, Dad!) to excel in this typically male-dominated world. Get ready to learn the facts: Is there a bias against women in the tech / developer communities? Why are women 50% of the workforce, but hold only 24% of the STEM or IT positions? Some beginnings of what to do about it! In her Opening Keynote at 16th Cloud Expo, Sandy Carter, IBM General Manager Cloud Ecosystem and Developers, and a Social Business Evangelist, d...