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If you’re like me, you spent the weekend longing for the mixed bag that is downtown Los Angeles during E3. I’ve got fond memories of fish tacos, The Last Bookstore, watching playoff basketball in garishly lit hotel lobbies and, of course, video game press conference after video game press conference.
For a second year in a row, the show’s gone all virtual, owing to…well, you know, that virus that has defined the past year and a half of our lives. Last year’s show was canceled altogether (though a handful of companies still kept to the schedule). Show organizers simply didn’t think they would be able to pull together a digital event — and frankly, it’s probably for the best that they understood those limitations.
The 2021 event, which kicked off on Saturday, marks the first all-virtual version of the event. For the time being, it’s also the last. Mayor Eric Garcetti kicked off the show by announcing that E3 would return to the LA Convention Center in 2022.
Gaming had a banner 2020, and while growth has slowed, as parts of the world look forward to a post-pandemic life, things are still growing. Some well-timed numbers from NPD this morning point to a 3% year-over-year growth for May 2021, as spending on gaming rose to $4.5 billion. Year-to-date, things are up 17%.
The timing of last year’s canceled event was certainly unfortunate from a hardware standpoint. Console refreshes are massive events at E3. 2020 gave us the PlayStation 5 and Xbox Series X. Announcements were relegated to Sony and Microsoft’s own events. That meant the companies were able to draw things out — revealing small details, piece by piece, rather than saving everything for the big show. It’s a strategy that lends itself much better to virtual presentations and blog posts than it does big conventions.
Sony is sitting this one out, too. While it’s entirely possible the company will be holding a big, virtual State of Play event at some point this summer, it won’t be tied to E3. Still, some Sony execs like PlayStation Studios head Hermen Hulst used the opportunity congratulate Microsoft on “a great showcase” on Twitter. So that’s a nice thing.
Thus far, Microsoft is the only one of the big three to present at the event. Nintendo will be holding a Treehouse event tomorrow. The Switch Pro could be on tap for the event, with an upgraded OLED display and internals. That would likely also mean a bunch of upgraded content for the new version of the four-year-old console.
Microsoft, meanwhile, went big on games. Understandable, given the recent launch of the Series X. And, let’s face it, these virtual events are perfectly suited for playing a whole bunch of trailers. The company showcased 30 games (and a fridge) in all. Of those, 27 will be part of the Xbox Game Pass, in case you had any doubt about what the future of gaming on the Xbox will look like. The event was framed as a combination Xbox and Bethesda showcase, having acquired the publisher earlier this year.
“Our growing family of 23 studios is devoted to advancing the medium we all love,” the company writes, “so we were happy to share that now through the end of the year, you can look forward to back-to-back monthly releases coming to Xbox Game Pass on day one, led by a record five new titles from Xbox Game Studios this holiday, including Halo Infinite.”
Highlights include:
Halo Infinite got a trailer and some in-game multiplayer footage. The latest version of the beloved Xbox mainstay is arriving this holiday season.
Starfield will be arriving November 11 [deep breath] 2022. The expansive space title will be an Xbox exclusive at launch.
Forza Horizon 5 will arrive in November. The latest installment of the popular racing series is set in Mexico.
In a no-brainer crossover event, Sea of Thieves will be teaming up with Pirates of the Caribbean for gameplay featuring Captain Jack Sparrow and others.
Age of Empires IV got an extended trailer and release date: October 28.
Battlefield 2042 got its first gameplay, including a sweet new wing suit.
Microsoft’s Flight Simulator will be hitting the new Xboxes on July 27th, along with a Top Gun expansion pack. That’s in honor of Top Gun: Maverick, which is apparently still coming out at some point.
Square Enix also held its customary big showcase on Sunday. The publisher will be releasing a bunch of new Marvel titles. Highlights include:
The long-awaited Guardians of the Galaxy. The adventure title is set to launch this October.
Marvel’s Avenger, meanwhile, will be getting the Black Panther-themed expansion pack, War for Wakanda. That’s arriving in August.
It wouldn’t be a Square Enix event without a Final Fantasy spinoff, right? The perennial favorite RPG is birthing Stranger of Paradise Final Fantasy Origin, which arrives on a slew of different platforms next year.
Ubisoft, meanwhile, made waves on Saturday with a first look at the new Avatar adaptation, Avatar: Frontiers of Pandora.
Tom Clancy’s Rainbow Six: Extraction is due out on September 16. Originally titled Rainbow Six: Quarantine, the name was changed for obvious reasons.
Capcom and Take-Two will showcase tonight, followed by Nintendo Direct and Bandai Namco tomorrow. On Thursday, EA is set to hold its own Play Live event. Meanwhile, here’s some video of that new Xbox fridge. Who said there wasn’t any new hardware?
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Productivity analytics startup Time is Ltd. wants to be the Google Analytics for company time. Or perhaps a sort of “Apple Screen Time” for companies. Whatever the case, the founders reckon that if you can map how time is spent in a company, enormous productivity gains can be unlocked and money better spent.
It’s now raised a $5.6 million late-seed funding round led by Mike Chalfen, of London-based Chalfen Ventures, with participation from Illuminate Financial Management and existing investor Accel. Acequia Capital and former Seal Software chairman Paul Sallaberry are also contributing to the new round, as is former Seal board member Clark Golestani. Furthermore, Ulf Zetterberg, founder and former CEO of contract discovery and analytics company Seal Software, is joining as president and co-founder.
The venture is the latest from serial entrepreneur Jan Rezab, better known for founding SocialBakers, which was acquired last year.
We are all familiar with inefficient meetings, pestering notifications chat, video conferencing tools and the deluge of emails. Time is Ltd. says it plans to address this by acquiring insights and data platforms such as Microsoft 365, Google Workspace, Zoom, Webex, MS Teams, Slack and more. The data and insights gathered would then help managers to understand and take a new approach to measure productivity, engagement and collaboration, the startup says.
The startup says it has now gathered 400 indicators that companies can choose from. For example, a task set by The Wall Street Journal for Time is Ltd. found the average response time for Slack users versus email was 16.3 minutes, comparing to emails which was 72 minutes.
Chalfen commented: “Measuring hybrid and distributed work patterns is critical for every business. Time Is Ltd.’s platform makes such measurement easily available and actionable for so many different types of organizations that I believe it could make work better for every business in the world.”
Rezab said: “The opportunity to analyze these kinds of collaboration and communication data in a privacy-compliant way alongside existing business metrics is the future of understanding the heartbeat of every company — I believe in 10 years time we will be looking at how we could have ignored insights from these platforms.”
Tomas Cupr, founder and Group CEO of Rohlik Group, the European leader of e-grocery, said: “Alongside our traditional BI approaches using performance data, we use Time is Ltd. to help improve the way we collaborate in our teams and improve the way we work both internally and with our vendors — data that Time is Ltd. provides is a must-have for business leaders.”
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Microsoft will soon launch a dedicated device for game streaming, the company announced today. It’s also working with a number of TV manufacturers to build the Xbox experience right into their internet-connected screens and Microsoft plans to bring cloud gaming to the PC Xbox app later this year, too, with a focus on play-before-you-buy scenarios.
It’s unclear what these new game streaming devices will look like. Microsoft didn’t provide any further details. But chances are we’re talking about either a Chromecast-like streaming stick or a small Apple TV-like box. So far, we also don’t know which TV manufacturers it will partner with.
It’s no secret that Microsoft is bullish about cloud gaming. With Xbox Game Pass Ultimate, it’s already making it possible for its subscribers to play more than 100 console games on Android, streamed from the Azure cloud, for example. In a few weeks, it’ll open cloud gaming in the browser on Edge, Chrome and Safari, to all Xbox Game Pass Ultimate subscribers (it’s currently in limited beta). And it is bringing Game Pass Ultimate to Australia, Brazil, Mexico and Japan later this year, too.
In many ways, Microsoft is unbundling gaming from the hardware — similar to what Google is trying with Stadia (an effort that, so far, has fallen flat for Google) and Amazon with Luna. The major advantage Microsoft has here is a large library of popular games, something that’s mostly missing on competing services, with the exception of Nvidia’s GeForce Now platform — though that one has a different business model since its focus is not on a subscription but on allowing you to play the games you buy in third-party stores like Steam or the Epic store.
What Microsoft clearly wants to do is expand the overall Xbox ecosystem, even if that means it sells fewer dedicated high-powered consoles. The company likens this to the music industry’s transition to cloud-powered services backed by all-you-can-eat subscription models.
“We believe that games, that interactive entertainment, aren’t really about hardware and software. It’s not about pixels. It’s about people. Games bring people together,” said Microsoft’s Xbox head Phil Spencer. “Games build bridges and forge bonds, generating mutual empathy among people all over the world. Joy and community — that’s why we’re here.”
It’s worth noting that Microsoft says it’s not doing away with dedicated hardware, though, and is already working on the next generation of its console hardware — but don’t expect a new Xbox console anytime soon.
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Iterative, an open-source startup that is building an enterprise AI platform to help companies operationalize their models, today announced that it has raised a $20 million Series A round led by 468 Capital and Mesosphere co-founder Florian Leibert. Previous investors True Ventures and Afore Capital also participated in this round, which brings the company’s total funding to $25 million.
The core idea behind Iterative is to provide data scientists and data engineers with a platform that closely resembles a modern GitOps-driven development stack.
After spending time in academia, Iterative co-founder and CEO Dmitry Petrov joined Microsoft as a data scientist on the Bing team in 2013. He noted that the industry has changed quite a bit since then. While early on, the questions were about how to build machine learning models, today the problem is how to build predictable processes around machine learning, especially in large organizations with sizable teams. “How can we make the team productive, not the person? This is a new challenge for the entire industry,” he said.
Big companies (like Microsoft) were able to build their own proprietary tooling and processes to build their AI operations, Petrov noted, but that’s not an option for smaller companies.
Currently, Iterative’s stack consists of a couple of different components that sit on top of tools like GitLab and GitHub. These include DVC for running experiments and data and model versioning, CML, the company’s CI/CD platform for machine learning, and the company’s newest product, Studio, its SaaS platform for enabling collaboration between teams. Instead of reinventing the wheel, Iterative essentially provides data scientists who already use GitHub or GitLab to collaborate on their source code with a tool like DVC Studio that extends this to help them collaborate on data and metrics, too.
“DVC Studio enables machine learning developers to run hundreds of experiments with full transparency, giving other developers in the organization the ability to collaborate fully in the process,” said Petrov. “The funding today will help us bring more innovative products and services into our ecosystem.”
Petrov stressed that he wants to build an ecosystem of tools, not a monolithic platform. When the company closed this current funding round about three months ago, Iterative had about 30 employees, many of whom were previously active in the open-source community around its projects. Today, that number is already closer to 60.
“Data, ML and AI are becoming an essential part of the industry and IT infrastructure,” said Leibert, general partner at 468 Capital. “Companies with great open-source adoption and bottom-up market strategy, like Iterative, are going to define the standards for AI tools and processes around building ML models.”
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At its (virtual) Build conference today, Microsoft launched a number of new features, tools and services for developers who want to integrate their services with Teams, the company’s Slack competitor. It’s no secret that Microsoft basically looks at Teams, which now has about 145 million daily active users, as the new hub for employees to get work done, so it’s no surprise that it wants third-party developers to bring their services right to Teams as well. And to do so, it’s now offering a set of new tools that will make this easier and enable developers to build new user experiences in Teams.
There’s a lot going on here, but maybe the most important news is the launch of the enhanced Microsoft Teams Toolkit for Visual Studio and Visual Studio Code.
“This essentially enables developers to build apps easier and faster — and to build very powerful apps tapping into the rich Microsoft stack,” Microsoft group program manager Archana Saseetharan explained. “With the updated toolkit […], we enable flexibility for developers. We want to meet developers where they are.”
The toolkit offers support for tools and frameworks like React, SharePoint and .NET. Some of the updates the team enabled with this release are integration with Aure Functions, the SharePoint Framework integration and a single-line integration with the Microsoft Graph. Microsoft is also making it easier for developers to integrate an authorization workflow into their Teams apps. “Login is the first kind of experience of any user with an app — and most of the drop-offs happen there,” Saseetharan said. “So [single-sign on] is something we completely are pushing hard on.”
The team also launched a new Developer Portal for Microsoft Teams that makes it easier for developers to register and configure their apps from a single tool. ISVs will also be able to use the new portal to offer their apps for in-Teams purchases.
Other new Teams features for developers include ways for developers to build real-time multi-user experiences like whiteboards and project boards, for example, as well as a new meeting event API to build meeting-related workflows for when a meeting starts and ends, for example, as well as new features for the Teams Together mode that will let developers design their own Together experiences.
There are a few other new features here as well, but what it all comes down to is that Microsoft wants developers to consider Teams as a viable platform for their services — and with 145 million daily active users, that’s potentially a lucrative way for software firms to get their services in front of a new audience.
“Teams is enabling a new class of apps called collaborative apps,” said Karan Nigam, Microsoft’s director of product marketing for Teams. “We are uniquely positioned to bring the richness to the collaboration space — a ton of innovation to the extensibility side to make apps richer, making it easier with the toolkit update, and then have a single-stop shop with the developer portal where the entire lifecycle can be managed. Ultimately, for a developer, they don’t have to go to multiple places, it’s one single flow from the business perspective for them as well.”
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In December, Microsoft wrote a blog post highlighting “The year ahead for Surface Duo.” The news highlighted the dual-screen device’s upcoming availability outside the U.S. (including Canada, the U.K., France and Germany this year), as well as a smattering of features. It’s been pretty well acknowledged from most everyone who reviewed the device (us included), that it’s very much a work in progress.
After making the feature available in beta, Microsoft today is issuing at update to Xbox Cloud Gaming for Android that will unlock some of the product’s entertainment potential. It’s something the company has discussed, and even previewed, but until now, it has remained one of a handful of blind spots.
The app works as you’d expect on the Duo — displaying the game on the top screen and transforming the bottom into a virtual version of an Xbox controller in the Compose Mode orientation. Obviously you can only go so far on that front with a touchscreen, but gaming is genuinely an application where having a second screen can really come in handy.
As Engadget notes, there are now more than 50 titles that support Xbox Touch Controls. Those will be available to users with an Xbox Game Pass Ultimate subscription.
A much-hyped — and eagerly anticipated — alternative to the foldable form factor, the Duo was a disappointment on launch. The company has since dropped the product’s price from $1,500 to $1,000 — not exactly a sign that it was selling well — but continued software support like this is, perhaps, an indication that the company is going to support the line going forward, in spite of early stumbles.
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In 2011, a product developer named Fred Davison read an article about inventor Ken Yankelevitz and his QuadControl video game controller for quadriplegics. At the time, Yankelevitz was on the verge of retirement. Davison wasn’t a gamer, but he said his mother, who had the progressive neurodegenerative disease ALS, inspired him to pick up where Yankelevitz was about to leave off.
Launched in 2014, Davison’s QuadStick represents the latest iteration of the Yankelevitz controller — one that has garnered interest across a broad range of industries.
“The QuadStick’s been the most rewarding thing I’ve ever been involved in,” Davison told TechCrunch. “And I get a lot of feedback as to what it means for [disabled gamers] to be able to be involved in these games.”
Erin Muston-Firsch, an occupational therapist at Craig Hospital in Denver, says adaptive gaming tools like the QuadStick have revolutionized the hospital’s therapy team.
Six years ago, she devised a rehabilitation solution for a college student who came in with a spinal cord injury. She says he liked playing video games, but as a result of his injury could no longer use his hands. So the rehab regimen incorporated Davison’s invention, which enabled the patient to play World of Warcraft and Destiny.
QuadStick
Jackson “Pitbull” Reece is a successful Facebook streamer who uses his mouth to operate the QuadStick, as well as the XAC, (the Xbox Adaptive Controller), a controller designed by Microsoft for use by people with disabilities to make user input for video games more accessible.
Reece lost the use of his legs in a motorcycle accident in 2007 and later, due to an infection, his hands and legs were amputated. He says he remembers able-bodied life as one filled with mostly sports video games. He says being a part of the gaming community is an important part of his mental health.
Fortunately there is an atmosphere of collaboration, not competition, around the creation of hardware for gamers within the assistive technology community.
But while not every major tech company has been proactive about accessibility, after-market devices are available to create customized gaming experiences for disabled gamers.
At its Hackathon in 2015, Microsoft’s Inclusive Lead Bryce Johnson met with disabled veterans’ advocacy group Warfighter Engaged.
“We were at the same time developing our views on inclusive design,” Johnson said. Indeed, eight generations of gaming consoles created barriers for disabled gamers.
“Controllers have been optimized around a primary use case that made assumptions,” Johnson said. Indeed, the buttons and triggers of a traditional controller are for able-bodied people with the endurance to operate them.
Besides Warfighter Engaged, Microsoft worked with AbleGamers (the most recognized charity for gamers with disabilities), Craig Hospital, the Cerebral Palsy Foundation and Special Effect, a U.K.-based charity for disabled young gamers.
Xbox Adaptive Controller
The finished XAC, released in 2018, is intended for a gamer with limited mobility to seamlessly play with other gamers. One of the details gamers commented on was that the XAC looks like a consumer device, not a medical device.
“We knew that we couldn’t design this product for this community,” Johnson told TechCrunch. “We had to design this product with this community. We believe in ‘nothing about us without us.’ Our principles of inclusive design urge us to include communities from the very beginning.”
There were others getting involved. Like many inventions, the creation of the Freedom Wing was a bit of serendipity.
At his booth at an assistive technology (AT) conference, ATMakers‘ Bill Binko showcased a doll named “Ella” using the ATMakers Joystick, a power-chair device. Also in attendance was Steven Spohn, who is part of the brain trust behind AbleGamers.
Spohn saw the Joystick and told Binko he wanted a similar device to work with the XAC. The Freedom Wing was ready within six weeks. It was a matter of manipulating the sensors to control a game controller instead of a chair. This device didn’t require months of R&D and testing because it had already been road tested as a power-chair device.
ATMakers Freedom Wing 2
Binko said mom-and-pop companies are leading the way in changing the face of accessible gaming technology. Companies like Microsoft and Logitech have only recently found their footing.
ATMakers, QuadStick and other smaller creators, meanwhile, have been busy disrupting the industry.
“Everybody gets [gaming] and it opens up the ability for people to engage with their community,” Binko said. “Gaming is something that people can wrap their heads around and they can join in.”
As the technology evolves, so do the obstacles to accessibility. These challenges include lack of support teams, security, licensing and VR.
Binko said managing support teams for these devices with the increase in demand is a new hurdle. More people with the technological skills are needed to join the AT industry to assist with the creation, installation and maintenance of devices.
Security and licensing is out of the hands of small creators like Davison because of financial and other resources needed to work with different hardware companies. For example, Sony’s licensing enforcement technology has become increasingly complex with each new console generation.
With Davison’s background in tech, he understands the restrictions to protect proprietary information. “They spend huge amounts of money developing a product and they want to control every aspect of it,” Davison said. “Just makes it tough for the little guy to work with.”
And while PlayStation led the way in button mapping, according to Davison, the security process is stringent. He doesn’t understand how it benefits the console company to prevent people from using whichever controller they want.
“The cryptography for the PS5 and DualSense controller is uncrackable so far, so adapter devices like the ConsoleTuner Titan Two have to find other weaknesses, like the informal ‘man in the middle’ attack,” Davison said.
The technique allows devices to utilize older-gen PlayStation controllers as a go-between from the QuadStick to the latest-gen console, so disabled gamers can play the PS5. TechCrunch reached out to Sony’s accessibility division, whose representative said there are no immediate plans for an adaptable PlayStation or controller. However, they stated their department works with advocates and gaming devs to consider accessibility from day one.
In contrast, Microsoft’s licensing system is more forgiving, especially with the XAC and the ability to use older-generation controllers with newer systems.
“Compare the PC industry to the Mac,” Davison said. “You can put together a PC system from a dozen different manufacturers, but not for the Mac. One is an open standard and the other is closed.”
In November, Japanese controller company HORI released an officially licensed accessibility controller for the Nintendo Switch. It’s not available for sale in the United States currently, but there are no region restrictions to purchase one online. This latest development points toward a more accessibility-friendly Nintendo, though the company has yet to fully embrace the technology.
Nintendo’s accessibility department declined a full interview but sent a statement to TechCrunch. “Nintendo endeavors to provide products and services that can be enjoyed by everyone. Our products offer a range of accessibility features, such as button-mapping, motion controls, a zoom feature, grayscale and inverted colors, haptic and audio feedback, and other innovative gameplay options. In addition, Nintendo’s software and hardware developers continue to evaluate different technologies to expand this accessibility in current and future products.”
The push for more accessible hardware for disabled gamers hasn’t been smooth. Many of these devices were created by small business owners with little capital. In a few cases corporations with a determination for inclusivity at the earliest stages of development became involved.
Slowly but surely, however, assistive technology is moving forward in ways that can make the experience much more accessible for gamers with disabilities.
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Sony and Discord have announced a partnership that will integrate the latter’s popular gaming-focused chat app with PlayStation’s own built-in social tools. It’s a big move and a fairly surprising one given how recently acquisition talks were in the air — Sony appears to have offered a better deal than Microsoft, taking an undisclosed minority stake in the company ahead of a rumored IPO.
The exact nature of the partnership is not expressed in the brief announcement post. The closest we come to hearing what will actually happen is that the two companies plan to “bring the Discord and PlayStation experiences closer together on console and mobile starting early next year,” which at least is easy enough to imagine.
Discord has partnered with console platforms before, though its deal with Microsoft was not a particularly deep integration. This is almost certainly more than a “friends can see what you’re playing on PS5” and more of a “this is an alternative chat infrastructure for anyone on a Sony system.” Chances are it’ll be a deep, system-wide but clearly Discord-branded option — such as “Start a voice chat with Discord” option when you invite a friend to your game or join theirs.
The timeline of early 2022 also suggests that this is a major product change, probably coinciding with a big platform update on Sony’s long-term PS5 roadmap.
While the new PlayStation is better than the old one when it comes to voice chat, the old one wasn’t great to begin with, and Discord is not just easier to use but something millions of gamers already do use daily. And these days, if a game isn’t an exclusive, being robustly cross-platform is the next best option — so PS5 players being able to seamlessly join and chat with PC players will reduce a pain point there.
Of course Microsoft has its own advantages, running both the Xbox and Windows ecosystems, but it has repeatedly fumbled this opportunity and the acquisition of Discord might have been the missing piece that tied it all together. That bird has flown, of course, and while Microsoft’s acquisition talks reportedly valued Discord at some $10 billion, it seems the growing chat app decided it would rather fly free with an IPO and attempt to become the dominant voice platform everywhere rather than become a prized pet.
Sony has done its part, financially speaking, by taking part in Discord’s recent $100 million H round. The amount they contributed is unknown, but perforce it can’t be more than a small minority stake, given how much the company has taken on and its total valuation.
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Conventional wisdom over the last year has suggested that the pandemic has driven companies to the cloud much faster than they ever would have gone without that forcing event, with some suggesting it has compressed years of transformation into months. This quarter’s cloud infrastructure revenue numbers appear to be proving that thesis correct.
With The Big Three — Amazon, Microsoft and Google — all reporting this week, the market generated almost $40 billion in revenue, according to Synergy Research data. That’s up $2 billion from last quarter and up 37% over the same period last year. Canalys’s numbers were slightly higher at $42 billion.
As you might expect if you follow this market, AWS led the way with $13.5 billion for the quarter, up 32% year over year. That’s a run rate of $54 billion. While that is an eye-popping number, what’s really remarkable is the yearly revenue growth, especially for a company the size and maturity of Amazon. The law of large numbers would suggest this isn’t sustainable, but the pie keeps growing and Amazon continues to take a substantial chunk.
Overall AWS held steady with 32% market share. While the revenue numbers keep going up, Amazon’s market share has remained firm for years at around this number. It’s the other companies down market that are gaining share over time, most notably Microsoft, which is now at around 20% share — good for about $7.8 billion this quarter.
Google continues to show signs of promise under Thomas Kurian, hitting $3.5 billion, good for 9% as it makes a steady march toward double digits. Even IBM had a positive quarter, led by Red Hat and cloud revenue, good for 5% or about $2 billion overall.
Image Credits: Synergy Research
John Dinsdale, chief analyst at Synergy, says that even though AWS and Microsoft have firm control of the market, that doesn’t mean there isn’t money to be made by the companies playing behind them.
“These two don’t have to spend too much time looking in their rearview mirrors and worrying about the competition. However, that is not to say that there aren’t some excellent opportunities for other players. Taking Amazon and Microsoft out of the picture, the remaining market is generating over $18 billion in quarterly revenues and growing at over 30% per year. Cloud providers that focus on specific regions, services or user groups can target several years of strong growth,” Dinsdale said in a statement.
Canalys, another firm that watches the same market as Synergy, had similar findings with slight variations, certainly close enough to confirm one another’s findings. They have AWS with 32%, Microsoft 19% and Google with 7%.
Image Credits: Canalys
Canalys analyst Blake Murray says that there is still plenty of room for growth, and we will likely continue to see big numbers in this market for several years. “Though 2020 saw large-scale cloud infrastructure spending, most enterprise workloads have not yet transitioned to the cloud. Migration and cloud spend will continue as customer confidence rises during 2021. Large projects that were postponed last year will resurface, while new use cases will expand the addressable market,” he said.
The numbers we see are hardly a surprise anymore, and as companies push more workloads into the cloud, the numbers will continue to impress. The only question now is if Microsoft can continue to close the market share gap with Amazon.
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Restoring and preserving the world’s forests has long been considered one of the easiest, lowest-cost and simplest ways to reduce the amount of greenhouse gases in the atmosphere.
It’s by far the most popular method for corporations looking to take an easy first step on the long road to decarbonizing or offsetting their industrial operations. But in recent months the efficacy, validity and reliability of a number of forest offsets have been called into question thanks to some blockbuster reporting from Bloomberg.
It’s against this uncertain backdrop that investors are coming in to shore up financing for Pachama, a company building a marketplace for forest carbon credits that it says is more transparent and verifiable thanks to its use of satellite imagery and machine learning technologies.
That pitch has brought in $15 million in new financing for the company, which co-founder and chief executive Diego Saez Gil said would be used for product development and the continued expansion of the company’s marketplace.
Launched only one year ago, Pachama has managed to land some impressive customers and backers. No less an authority on things environmental than Jeff Bezos (given how much of a negative impact Amazon operations have on the planet), gave the company a shoutout in his last letter to shareholders as Amazon’s outgoing chief executive. And the largest e-commerce company in Latin America, Mercado Libre, tapped the company to manage an $8 million offset project that’s part of a broader commitment to sustainability by the retailing giant.
Amazon’s Climate Pledge Fund is an investor in the latest round, which was led by Bill Gates’ investment firm Breakthrough Energy Ventures. Other investors included Lowercarbon Capital (the climate-focused fund from über-successful angel investor, Chris Sacca), former Uber executive Ryan Graves’ Saltwater, the MCJ Collective, and new backers like Tim O’Reilly’s OATV, Ram Fhiram, Joe Gebbia, Marcos Galperin, NBA All-star Manu Ginobili, James Beshara, Fabrice Grinda, Sahil Lavignia and Tomi Pierucci.
That’s not even the full list of the company’s backers. What’s made Pachama so successful, and given the company the ability to attract top talent from companies like Google, Facebook, SpaceX, Tesla, OpenAI, Microsoft, Impossible Foods and Orbital Insights, is the combination of its climate mission applied to the well-understood forest offset market, said Saez Gil.
“Restoring nature is one of the most important solutions to climate change. Forests, oceans and other ecosystems not only sequester enormous amounts of CO2 from the atmosphere, but they also provide critical habitat for biodiversity and are sources of livelihood for communities worldwide. We are building the technology stack required to be able to drive funding to the restoration and conservation of these ecosystems with integrity, transparency and efficiency” said Saez Gil. “We feel honored and excited to have the support of such an incredible group of investors who believe in our mission and are demonstrating their willingness to support our growth for the long term.”
Customers outside of Latin America are also clamoring for access to Pachama’s offset marketplace. Microsoft, Shopify and SoftBank are also among the company’s paying buyers.
It’s another reason that investors like Y Combinator, Social Capital, Tobi Lutke, Serena Williams, Aglaé Ventures (LVMH’s tech investment arm), Paul Graham, AirAngels, Global Founders, ThirdKind Ventures, Sweet Capital, Xplorer Capital, Scott Belsky, Tim Schumacher, Gustaf Alstromer, Facundo Garreton and Terrence Rohan were able to commit to backing the company’s nearly $24 million haul since its 2020 launch.
“Pachama is working on unlocking the full potential of nature to remove CO2 from the atmosphere,” said Carmichael Roberts from BEV, in a statement. “Their technology-based approach will have an enormous multiplier effect by using machine learning models for forest analysis to validate, monitor and measure impactful carbon neutrality initiatives. We are impressed by the progress that the team has made in a short period of time and look forward to working with them to scale their unique solution globally.”
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