Welcome!

Containers Expo Blog Authors: Anders Wallgren, John Esposito, Derek Weeks, Jason Bloomberg, Tim Hinds

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
SYS-CON Events announced today that Peak 10, Inc., a national IT infrastructure and cloud services provider, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Peak 10 provides reliable, tailored data center and network services, cloud and managed services. Its solutions are designed to scale and adapt to customers’ changing business needs, enabling them to lower costs, improve performance and focus inter...
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
So, you bought into the current machine learning craze and went on to collect millions/billions of records from this promising new data source. Now, what do you do with them? Too often, the abundance of data quickly turns into an abundance of problems. How do you extract that "magic essence" from your data without falling into the common pitfalls? In her session at @ThingsExpo, Natalia Ponomareva, Software Engineer at Google, will provide tips on how to be successful in large scale machine lear...
In his session at @ThingsExpo, Chris Klein, CEO and Co-founder of Rachio, will discuss next generation communities that are using IoT to create more sustainable, intelligent communities. One example is Sterling Ranch, a 10,000 home development that – with the help of Siemens – will integrate IoT technology into the community to provide residents with energy and water savings as well as intelligent security. Everything from stop lights to sprinkler systems to building infrastructures will run ef...
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...
Machine Learning helps make complex systems more efficient. By applying advanced Machine Learning techniques such as Cognitive Fingerprinting, wind project operators can utilize these tools to learn from collected data, detect regular patterns, and optimize their own operations. In his session at 18th Cloud Expo, Stuart Gillen, Director of Business Development at SparkCognition, will discuss how research has demonstrated the value of Machine Learning in delivering next generation analytics to im...
There is an ever-growing explosion of new devices that are connected to the Internet using “cloud” solutions. This rapid growth is creating a massive new demand for efficient access to data. And it’s not just about connecting to that data anymore. This new demand is bringing new issues and challenges and it is important for companies to scale for the coming growth. And with that scaling comes the need for greater security, gathering and data analysis, storage, connectivity and, of course, the...
This is not a small hotel event. It is also not a big vendor party where politicians and entertainers are more important than real content. This is Cloud Expo, the world's longest-running conference and exhibition focused on Cloud Computing and all that it entails. If you want serious presentations and valuable insight about Cloud Computing for three straight days, then register now for Cloud Expo.
IoT device adoption is growing at staggering rates, and with it comes opportunity for developers to meet consumer demand for an ever more connected world. Wireless communication is the key part of the encompassing components of any IoT device. Wireless connectivity enhances the device utility at the expense of ease of use and deployment challenges. Since connectivity is fundamental for IoT device development, engineers must understand how to overcome the hurdles inherent in incorporating multipl...
The increasing popularity of the Internet of Things necessitates that our physical and cognitive relationship with wearable technology will change rapidly in the near future. This advent means logging has become a thing of the past. Before, it was on us to track our own data, but now that data is automatically available. What does this mean for mHealth and the "connected" body? In her session at @ThingsExpo, Lisa Calkins, CEO and co-founder of Amadeus Consulting, will discuss the impact of wea...
SYS-CON Events announced today that Stratoscale, the software company developing the next generation data center operating system, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Stratoscale is revolutionizing the data center with a zero-to-cloud-in-minutes solution. With Stratoscale’s hardware-agnostic, Software Defined Data Center (SDDC) solution to store everything, run anything and scale everywhere...
Angular 2 is a complete re-write of the popular framework AngularJS. Programming in Angular 2 is greatly simplified – now it's a component-based well-performing framework. This immersive one-day workshop at 18th Cloud Expo, led by Yakov Fain, a Java Champion and a co-founder of the IT consultancy Farata Systems and the product company SuranceBay, will provide you with everything you wanted to know about Angular 2.
SYS-CON Events announced today that Men & Mice, the leading global provider of DNS, DHCP and IP address management overlay solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. The Men & Mice Suite overlay solution is already known for its powerful application in heterogeneous operating environments, enabling enterprises to scale without fuss. Building on a solid range of diverse platform support,...
You deployed your app with the Bluemix PaaS and it's gaining some serious traction, so it's time to make some tweaks. Did you design your application in a way that it can scale in the cloud? Were you even thinking about the cloud when you built the app? If not, chances are your app is going to break. Check out this webcast to learn various techniques for designing applications that will scale successfully in Bluemix, for the confidence you need to take your apps to the next level and beyond.
We’ve worked with dozens of early adopters across numerous industries and will debunk common misperceptions, which starts with understanding that many of the connected products we’ll use over the next 5 years are already products, they’re just not yet connected. With an IoT product, time-in-market provides much more essential feedback than ever before. Innovation comes from what you do with the data that the connected product provides in order to enhance the customer experience and optimize busi...
Increasing IoT connectivity is forcing enterprises to find elegant solutions to organize and visualize all incoming data from these connected devices with re-configurable dashboard widgets to effectively allow rapid decision-making for everything from immediate actions in tactical situations to strategic analysis and reporting. In his session at 18th Cloud Expo, Shikhir Singh, Senior Developer Relations Manager at Sencha, will discuss how to create HTML5 dashboards that interact with IoT devic...
Artificial Intelligence has the potential to massively disrupt IoT. In his session at 18th Cloud Expo, AJ Abdallat, CEO of Beyond AI, will discuss what the five main drivers are in Artificial Intelligence that could shape the future of the Internet of Things. AJ Abdallat is CEO of Beyond AI. He has over 20 years of management experience in the fields of artificial intelligence, sensors, instruments, devices and software for telecommunications, life sciences, environmental monitoring, process...
SYS-CON Events announced today that Ericsson has been named “Gold Sponsor” of SYS-CON's @ThingsExpo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. Ericsson is a world leader in the rapidly changing environment of communications technology – providing equipment, software and services to enable transformation through mobility. Some 40 percent of global mobile traffic runs through networks we have supplied. More than 1 billion subscribers around the world re...
Digital payments using wearable devices such as smart watches, fitness trackers, and payment wristbands are an increasing area of focus for industry participants, and consumer acceptance from early trials and deployments has encouraged some of the biggest names in technology and banking to continue their push to drive growth in this nascent market. Wearable payment systems may utilize near field communication (NFC), radio frequency identification (RFID), or quick response (QR) codes and barcodes...
SYS-CON Events announced today that Fusion, a leading provider of cloud services, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Fusion, a leading provider of integrated cloud solutions to small, medium and large businesses, is the industry's single source for the cloud. Fusion's advanced, proprietary cloud service platform enables the integration of leading edge solutions in the cloud, including cloud...