Welcome!

Containers Expo Blog Authors: Pat Romanski, SmartBear Blog, Liz McMillan, Olivier Huynh Van, Carmen Gonzalez

Related Topics: Containers Expo Blog, Cognitive Computing

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
SYS-CON Events announced today that HTBase will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. HTBase (Gartner 2016 Cool Vendor) delivers a Composable IT infrastructure solution architected for agility and increased efficiency. It turns compute, storage, and fabric into fluid pools of resources that are easily composed and re-composed to meet each application’s needs. With HTBase, companies can quickly prov...
SYS-CON Events announced today that Linux Academy, the foremost online Linux and cloud training platform and community, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Linux Academy was founded on the belief that providing high-quality, in-depth training should be available at an affordable price. Industry leaders in quality training, provided services, and student certification passes, its goal is to c...
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
In his session at @ThingsExpo, Eric Lachapelle, CEO of the Professional Evaluation and Certification Board (PECB), will provide an overview of various initiatives to certifiy the security of connected devices and future trends in ensuring public trust of IoT. Eric Lachapelle is the Chief Executive Officer of the Professional Evaluation and Certification Board (PECB), an international certification body. His role is to help companies and individuals to achieve professional, accredited and worldw...
SYS-CON Events announced today that Auditwerx will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Auditwerx specializes in SOC 1, SOC 2, and SOC 3 attestation services throughout the U.S. and Canada. As a division of Carr, Riggs & Ingram (CRI), one of the top 20 largest CPA firms nationally, you can expect the resources, skills, and experience of a much larger firm combined with the accessibility and attent...
SYS-CON Events announced today that CA Technologies has been named “Platinum Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business – from apparel to energy – is being rewritten by software. From ...
SYS-CON Events announced today that Technologic Systems Inc., an embedded systems solutions company, will exhibit at SYS-CON's @ThingsExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Technologic Systems is an embedded systems company with headquarters in Fountain Hills, Arizona. They have been in business for 32 years, helping more than 8,000 OEM customers and building over a hundred COTS products that have never been discontinued. Technologic Systems’ pr...
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend @CloudExpo | @ThingsExpo, June 6-8, 2017, at the Javits Center in New York City, NY and October 31 - November 2, 2017, Santa Clara Convention Center, CA. Learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
SYS-CON Events announced today that Loom Systems will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Founded in 2015, Loom Systems delivers an advanced AI solution to predict and prevent problems in the digital business. Loom stands alone in the industry as an AI analysis platform requiring no prior math knowledge from operators, leveraging the existing staff to succeed in the digital era. With offices in S...
SYS-CON Events announced today that T-Mobile will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. As America's Un-carrier, T-Mobile US, Inc., is redefining the way consumers and businesses buy wireless services through leading product and service innovation. The Company's advanced nationwide 4G LTE network delivers outstanding wireless experiences to 67.4 million customers who are unwilling to compromise on ...
SYS-CON Events announced today that Infranics will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Since 2000, Infranics has developed SysMaster Suite, which is required for the stable and efficient management of ICT infrastructure. The ICT management solution developed and provided by Infranics continues to add intelligence to the ICT infrastructure through the IMC (Infra Management Cycle) based on mathemat...
SYS-CON Events announced today that Interoute, owner-operator of one of Europe's largest networks and a global cloud services platform, has been named “Bronze Sponsor” of SYS-CON's 20th Cloud Expo, which will take place on June 6-8, 2017 at the Javits Center in New York, New York. Interoute is the owner-operator of one of Europe's largest networks and a global cloud services platform which encompasses 12 data centers, 14 virtual data centers and 31 colocation centers, with connections to 195 add...
SYS-CON Events announced today that Cloudistics, an on-premises cloud computing company, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Cloudistics delivers a complete public cloud experience with composable on-premises infrastructures to medium and large enterprises. Its software-defined technology natively converges network, storage, compute, virtualization, and management into a ...
SYS-CON Events announced today that SD Times | BZ Media has been named “Media Sponsor” of SYS-CON's 20th International Cloud Expo, which will take place on June 6–8, 2017, at the Javits Center in New York City, NY. BZ Media LLC is a high-tech media company that produces technical conferences and expositions, and publishes a magazine, newsletters and websites in the software development, SharePoint, mobile development and commercial UAV markets.
"I think that everyone recognizes that for IoT to really realize its full potential and value that it is about creating ecosystems and marketplaces and that no single vendor is able to support what is required," explained Esmeralda Swartz, VP, Marketing Enterprise and Cloud at Ericsson, in this SYS-CON.tv interview at @ThingsExpo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Why do your mobile transformations need to happen today? Mobile is the strategy that enterprise transformation centers on to drive customer engagement. In his general session at @ThingsExpo, Roger Woods, Director, Mobile Product & Strategy – Adobe Marketing Cloud, covered key IoT and mobile trends that are forcing mobile transformation, key components of a solid mobile strategy and explored how brands are effectively driving mobile change throughout the enterprise.
My team embarked on building a data lake for our sales and marketing data to better understand customer journeys. This required building a hybrid data pipeline to connect our cloud CRM with the new Hadoop Data Lake. One challenge is that IT was not in a position to provide support until we proved value and marketing did not have the experience, so we embarked on the journey ourselves within the product marketing team for our line of business within Progress. In his session at @BigDataExpo, Sum...
Keeping pace with advancements in software delivery processes and tooling is taxing even for the most proficient organizations. Point tools, platforms, open source and the increasing adoption of private and public cloud services requires strong engineering rigor - all in the face of developer demands to use the tools of choice. As Agile has settled in as a mainstream practice, now DevOps has emerged as the next wave to improve software delivery speed and output. To make DevOps work, organization...
SYS-CON Events announced today that MobiDev, a client-oriented software development company, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. MobiDev is a software company that develops and delivers turn-key mobile apps, websites, web services, and complex softw...
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm.