Daily Archives: April 9, 2022

How to combine the power of cloud and edge computing – Raconteur

Posted: April 9, 2022 at 4:05 am

Like companies all around the world, US fast-food chain Taco Bell responded to the pandemics commercial impact by accelerating its shift to the cloud. As customers traditional patterns of restaurant and drive-through consumption changed rapidly and permanently to include kiosk, mobile and web ordering, often through third-party delivery services, Taco Bell moved the remainder of its group IT to cloudservices.

But this 100% cloud-based approach stops at the restaurant door. Given that many of its 7,000 outlets dont have fast and/or reliable internet connections, the company has recognised the limitations of the public cloud model and augmented its approach with edge computing. This set-up enables the company to process data near the physical point at which it is created, with only a periodic requirement to feed the most valuable material back to the cloud and receive updates fromit.

Taco Bell is just one of thousands of firms seeking to exploit the fast-evolving and much-hyped distributed IT capability that edge computing can offer.

Edge computing is getting so much attention now because organisations have accepted that there are things that cloud does poorly, observes Bob Gill, vice-president of research at Gartner and the founder of the consultancys edge research community.

Issues of latency (time-lag) and limited bandwidth when moving data are key potential weaknesses of the centralised cloud model. These drive a clear distinction between the use cases for cloud and edge computing. But the edge is also a focus for many organisations because they want to add intelligence to much of the equipment that sits within their operations and to apply AI-powered automation at those endpoints.

Early adopters include manufacturers implementing edge computing in their plants as part of their Industry 4.0 plans; logistics groups seeking to give some autonomy to dispersed assets; healthcare providers with medical equipment scattered across hospitals; and energy companies operating widely dispersed generation facilities.

For such applications to be viable and efficient, their data must be processed as close to the point of origin or consumption as possible, says George Elissaios, director of product management at Amazon Web Services. With edge computing, these applications can have lower latency, faster response times and give end customers a better experience.Edge computing can also aid interconnectivity by reducing the amount of data that needs to be backhauled to datacentres.

In some ways, the emergence of edge computing represents a new topology for IT. So says Paul Savill, global practice leader for networking and edge computing at Kyndryl, the provider of managed infrastructure services that was recently spun out ofIBM.

Companies are looking at the edge as a third landing spot for their data and applications. Its a new tier between the public cloud and the intelligence at an end device a robot, say, heexplains.

But most organisations dont expect their edge and cloud implementations to exist as distinct entities. Rather, they want to find ways to blend the scalability and flexibility they have achieved with the cloud with the responsiveness and autonomy of internet-of-things (IoT) and satellite processors installed at theedge.

Gill believes that cloud and edge are pure yin and yang. Each does things the other doesnt do well. When put together effectively, they are highly symbiotic.

They will need to be, as more and more intelligence is moved to the edge. More than 75 billion smart digital devices will be deployed worldwide by 2025, according to projections by research group IHS Markit. And it is neither desirable nor realistic for these to be interacting continuously with thecloud.

Cloud and edge are pure yin and yang When put together effectively, theyre highly symbiotic

When you start to add in multiple devices, you see a vast increase in the volume, velocity and variety of the data they generate, says Greg Hanson, vice-president of data management company Informatica in EMEA and Latin America. You simply cant keep moving all of that data into a central point without incurring a significant cost and becoming reliant on network bandwidth and infrastructure.

In such situations, edge IT performs a vital data-thinning function. Satellite processors sitting close to the end points filter out the most valuable material, collate it and dispatch it to the cloud periodically for heavyweight analysis, the training of machine-learning algorithms and longer-term storage. Processors at the edge can also apply data security and privacy rules locally to ensure regulatory compliance.

Gill notes that edge computing has shifted quickly from concept and hype to successful implementations. In many vertical industries, it is generating revenue, saving money, improving safety, enhancing the customer experience and enabling entirely new applications and datamodels.

Before achieving such gains, many edge pioneers are likely to have surmounted numerous significant challenges. Given that the technology is immature, there are few widely accepted standards that businesses can apply to it. This means that theyre often faced with an overwhelmingly wide range of designs for tech ranging from sensors and operating systems to software stacks and data management methods.

Such complexity is reflected in a widespread shortage of specialist expertise. As Savill notes: Many companies dont have all the skills they need to roll out edge computing. Theyre short of people with real competence in the orchestration of these distributed application architectures.

The goal may be to blend cloud and edge seamlessly into a unified model, but the starting points can be very different. There are two fundamentally different though not totally contradictory schools of thought, according to Gill. The cloud out perspective, favoured by big cloud service providers such as Amazon, Microsoft and Google, views the edge as an extension of the cloud model that extends the capabilities of theirproducts.

The other approach is known as edge in. In this case, organisations develop edge-native applications that occasionally reach up to the cloud to, say, pass data on to train a machine-learning algorithm.

Adherents of either approach are seeing significant returns on their investments when they get itright.

We may be in the early phase of exploiting that combination of IoT, edge and cloud, but the capabilities enabling these distributed architectures the software control and orchestration tools and the integration capabilities have already reached the point where theyre highly effective, Savill reports. Some companies that are figuring this out are seeing operational savings of 30% to 40% compared with more traditional configurations.

In doing so, they are also heralding a large-scale resurgence of the edifice that cloud helped to tear down: on-premises IT albeit in a different form.

In the next 10 to 20 years, the on-premises profile for most companies will not be servers, Elissaios predicts. It will be connected devices and billions ofthem.

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How to combine the power of cloud and edge computing - Raconteur

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Will cloud computing be Canadas next big military procurement? Heres what to know – Global News

Posted: at 4:05 am

Ask most Canadians what the military needs next, and cloud computing might not be the first thing that jumps to mind.

But modernizing how Canadian security officials manage increasingly massive troves of data could be among the most important decisions of the coming years and federal officials have confirmed to Global News that preliminary work is underway.

Militaries are reflective of the societies they live in and a lot of the sort of development of how were going to fight wars in the future is stuff that we see in society today, which is large amounts of data management, said Richard Shimooka, a senior fellow at the Macdonald-Laurier Institute.

Its taking huge amounts of information and organizing and storing it away, and then actually applying them to conduct operations.

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Canadian national security agencies and the military sit atop hordes of data that need to be continually tracked, assessed and managed in order to support the operations carried out to protect the countrys interests.

Increasingly though, those reams of data arent being stored just in filing cabinets or basements or bunkers. They sit in the cloud the digital ether that most Canadians likely know best as the safe haven for backing up old family photos or for syncing information between multiple devices.

As the amorphous nature of cyber warfare and cyber conflict have demonstrated over recent years, being able to gather, interpret, share and act on digital information is already a critical part of how militaries and national security agencies do their jobs in the 21st century.

Yet modernization has been a slow march for Canadian security actors, including the Canadian Forces.

Some of our systems and processes are dating back to the 50s. So [there is] crazy potential to upgrade that with not even modern practices, but to catch up to the 2010s, said Dave Perry, vice president of the Canadian Global Affairs Institute and an expert in Canadian defence policy.

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It was a massive accomplishment to start using [Microsoft] Office 365 in recent years.

U.S. military cloud contracts are worth billions

Speculation about whether Canada could look toward a cloud computing contract comes amid plans south of the border to award a multibillion-dollar contract later this year for the Department of Defense.

Last summer, the U.S. Defense Department announced plans to award a contract in April 2022 for what it now calls the Joint Warfighting Cloud Capability.

That initiative aims to bring multiple American IT providers into a contract to provide cloud computing services for the military, and it replaces a single vendor program planned under the former Trump administration that was known as JEDI the Joint Enterprise Defense Infrastructure project.

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Last month, the Pentagon announced the JWCC contract wont be awarded until December 2022.

Microsoft and Amazon are believed to be frontrunners for different parts of that deal, while Google, Oracle and IBM have also expressed interest.

Some of those firms are now also lobbying Canadian officials to get similar contracts in place here.

Which firms are lobbying Canadian officials?

Google, IBM, Oracle and Microsoft did not have any lobbying listings with national security officials in recent months, although all list cloud computing as among their broader lobbying interests with officials with other departments including Treasury Board Secretariat, Justice Canada, and Natural Resources.

Amazon Web Services does have recent records filed disclosing lobbying with national security agencies and officials, one of its listed interests being seeking contracts with multiple government departments and institutions with regards to Amazon Cloud based solutions and related support services.

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The web giant also has job postings up for working on its push to get cloud computing into Canadian government departments, including an account manager. That role is tasked with increasing adoption of Amazon Web Services by developing strategic accounts within Canadas Federal Government National Security sector.

According to lobbyist filings, Eric Gales, president of the Canadian branch, had meetings with Michael Power, chief of staff to Defence Minister Anita Anand, on Feb. 19, 2022, and one day earlier had met with the acting assistant deputy minister of Shared Services Canada, Scott Davis.

He also metwith Sami Khoury, head of the Canadian Centre for Cyber Security, on Nov. 17, 2021.

The Canadian Centre for Cyber Security is part of the Communications Security Establishment, Canadas signals intelligence agency and the body tasked with protecting the Government of Canadas IT networks.

A spokesperson for the CSE confirmed early work on the matter is underway,

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The evolving information technology (IT) world is moving to cloud-based services. We are aware that our closest allies have, or are acquiring classified cloud capabilities, and we continue to engage in conversations with them on security requirements to maintain interoperability, Evan Koronewski said.

The Government of Canadas security and intelligence community is engaged in preliminary research, exploring the requirements for classified cloud services.

He added officials are exploring security requirements with the Treasury Board Secretariat, Shared Services Canada, and the Department of National Defence.

A spokesperson for the latter also confirmed that the military is working on incorporating more cloud capabilities, though not yet for classified material.

We recognize that cloud computing offers key benefits in terms of IT efficiency, said Dan Le Bouthillier.

DND/CAF is building its cloud capacity and has adopted a Multi-cloud Strategy with multiple vendors, namely Microsoft, Amazon Web Services, and Google.

He added the goal is to strike the right balance between agility and security.

The website for Shared Services Canada, which handles IT services for government departments, states there are framework agreements for cloud computing in place with eight providers: Google Cloud, ServiceNow, IBM Cloud, Oracle, ThinkOn, Microsoft and Amazon Web Services.

Those will let departments contract cloud services as they need through those providers.

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The U.S. military cloud computing contract is valued at US$9 billion, or $11.2 billion.

Its not clear how much a similar solution for national security agencies here could cost.

Both Prime Minister Justin Trudeau and Defence Minister Anita Anand have suggested in recent weeks that the government is weighing an increase to defence spending, moving it closer to the NATO target, which aims to see all members of the military alliance spend at least two per cent of GDP on defence.

Canadas current defence spending sits at 1.39 per cent of GDP.

To hit the two per cent target would require approximately $16 billion.

That would be above the increases currently projected under the governments 2017 plan to boost defence spending, which will see it rise to $32.7 billion by 2026/27 from $18.9 billion in 2016/17.

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Outlook on the Gaming Simulation Global Market to 2030 – Adoption of AI and Cloud Computing for Better Experience Presents Opportunities – Yahoo…

Posted: at 4:05 am

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Dublin, April 08, 2022 (GLOBE NEWSWIRE) -- The "Gaming Simulation Market by Component, Game Type, and End Use: Global Opportunity Analysis and Industry Forecast, 2021-2030" report has been added to ResearchAndMarkets.com's offering.

Gaming simulation is a type of simulator, which provides real-life scenarios and stimulates various types of environment to end users. In addition, various market players are innovating hardware and are designing different types of simulators to provide better experience to end users, which positively impacts the growth of the market. Furthermore, gaming simulator enhance the computer gaming skill by using 3D modelling, aerodynamics, analytical simulation, and complexity chaotic systems simulation.

Surge in adoption of gaming simulation for training and analysis in various industries and rise in demand for VR headsets boost growth of the global gaming stimulator market. In addition, increase in acceptance of 360-degree camera as next-generation technology across different developing nations positively impacts growth of the market. However, security and privacy issues associated with VR headsets and high cost of VR headsets hamper the market growth. On the contrary, adoption of AI and cloud computing for better experience and rise in collaboration between entertainment industry and gaming simulator companies across the globe are expected to offer remunerative opportunities for expansion of the market during the forecast period.

The global gaming simulation market is segmented into component, game type, end user, and region. By component, the market is bifurcated into hardware, software and service. On the basis of game type, it is categorized into shooting, fighting, racing, and others. Depending on end user, it is classified into residential and commercial. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

The key players profiled in the gaming simulation market report are 3D Perception, CKAS Mechatronics Pty Ltd., CXC Simulations, D-Box Technologies Inc., Eleetus, Hammacher Schlemmer & Company, Inc., Play seat B.V., Rseat Ltd., Sony Interactive Entertainment Inc., and Vesaro. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.

Key Benefits

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The study provides an in-depth analysis of the global gaming simulation market forecast along with the current trends and future estimations to explain the imminent investment pockets.

Information about key drivers, restraints, & opportunities and their impact analysis on global gaming simulation market trends is provided in the report.

Porter's five forces analysis illustrates the potency of the buyers and suppliers operating in the industry.

The quantitative analysis of the market from 2021 to 2030 is provided to determine the market potential.

Key Topics Covered:

CHAPTER 1: INTRODUCTION

CHAPTER 2: EXECUTIVE SUMMARY

CHAPTER 3: MARKET OVERVIEW3.1. Market definition and scope3.2. Key forces shaping gaming simulators industry/market3.4. Market dynamics3.4.1. Drivers3.4.1.1. Growing adoption of gaming simulation for training and analysis in various industries3.4.1.2. Rise in demand for VR headsets3.4.1.3. Growing acceptance of 360-degree camera as next-generation technology across different developing nations3.4.2. Restraints3.4.2.1. Security and privacy issues associated with VR headsets and high cost of VR headsets3.4.3. Opportunity3.4.3.1. Adoption of AI and cloud computing for better experience3.4.3.2. Growing collaboration between entertainment industry and gaming simulator companies3.5. COVID-19 impact analysis on gaming simulators market3.5.1. Impact on market size3.5.2. Change in consumer trends, preferences, and budget impact due to COVID-193.5.3. Economic impact3.5.4. Key player strategies to tackle negative impact in the industry3.5.5. Opportunity analysis for gaming simulator providers

CHAPTER 4: GLOBAL GAMING SIMULATION MARKET, BY COMPONENT4.1. Overview4.2. Hardware4.2.1. Key market trends, growth factors, and opportunities4.2.2. Market size and forecast, by region4.2.3. Market analysis, by country4.3. Software4.3.1. Key market trends, growth factors, and opportunities4.3.2. Market size and forecast, by region4.3.3. Market analysis, by country4.4. Service4.4.1. Key market trends, growth factors, and opportunities4.4.2. Market size and forecast, by region4.4.3. Market analysis, by country

CHAPTER 5: GLOBAL GAMING SIMULATION MARKET, BY GAME TYPE5.1. Overview5.2. Shooting5.2.1. Key market trends, growth factors, and opportunities5.2.2. Market size and forecast, by region5.2.3. Market analysis, by country5.3. Fighting5.3.1. Key market trends, growth factors, and opportunities5.3.2. Market size and forecast, by region5.3.3. Market analysis, by country5.4. Racing5.4.1. Key market trends, growth factors, and opportunities5.4.2. Market size and forecast, by region5.4.3. Market analysis, by country5.5. Others5.5.1. Key market trends, growth factors, and opportunities5.5.2. Market size and forecast, by region5.5.3. Market analysis, by country

CHAPTER 6: GLOBAL GAMING SIMULATION MARKET, BY END USER6.1. Overview6.2. Residential6.2.1. Key market trends, growth factors, and opportunities6.2.2. Market size and forecast, by region6.2.3. Market analysis, by country6.3. Commercial6.3.1. Key market trends, growth factors, and opportunities6.3.2. Market size and forecast, by region6.3.3. Market analysis, by country6.3.4. Commercial gaming simulation market, by commercial type6.3.4.1. Defense and Security6.3.4.1.1. Market size and forecast, by region6.3.4.1.2. Market analysis, by country6.3.4.2. Civil Aviation6.3.4.2.1. Market size and forecast, by region6.3.4.2.2. Market analysis, by country6.3.4.3. Education6.3.4.3.1. Market size and forecast, by region6.3.4.3.2. Market analysis, by country6.3.4.4. Entertainment6.3.4.4.1. Market size and forecast, by region6.3.4.4.2. Market analysis, by country6.3.4.5. Others6.3.4.5.1. Market size and forecast, by region6.3.4.5.2. Market analysis, by country

CHAPTER 7: GOBAL GAMING SIMULATION MARKET, BY REGION

CHAPTER 8: COMPETITIVE LANDSCAPE8.1. Key players positioning analysis, 20208.2. Competitive dashboard8.3. Top winning strategies

CHAPTER 9: COMPANY PROFILE9.1.3D perception9.1.1. Company overview9.1.2. Key Executives9.1.3. Company snapshot9.1.4. Product portfolio9.1.5. Key strategic moves and developments9.2. CKAS Mechatronics Pty Ltd9.2.1. Company overview9.2.2. Key Executives9.2.3. Company snapshot9.2.4. Product portfolio9.2.5. Key strategic moves and development9.3. CXC Simulations9.3.1. Company overview9.3.2. Key Executives9.3.3. Company snapshot9.3.4. Product portfolio9.3.5. Key strategic moves and development9.4. D-BOX Technologies Inc.9.4.1. Company overview9.4.2. Key executives9.4.3. Company snapshot9.4.4. Product portfolio9.4.5. R&D Expenditure9.4.6. Business performance9.4.7. Key strategic moves and developments9.5. Eleetus, LLC.9.5.1. Company overview9.5.2. Key Executives9.5.3. Company snapshot9.5.4. Product portfolio9.6. Hammacher Schlemmer & Company, Inc.9.6.1. Company overview9.6.2. Key Executives9.6.3. Company snapshot9.6.4. Product portfolio9.7. Play Seat B.V.9.7.1. Company overview9.7.2. Key Executives9.7.3. Company snapshot9.7.4. Product portfolio9.7.5. Key strategic moves and developments9.8. RSEAT Ltd.9.8.1. Company overview9.8.2. Key Executives9.8.3. Company snapshot9.8.4. Product portfolio9.9. Sony Interactive Entertainment Inc.9.9.1. Company overview9.9.2. Key Executives9.9.3. Company snapshot9.9.4. Product portfolio9.9.5. R&D Expenditure9.9.6. Business performance9.9.7. Key strategic moves and developments9.10. Vesaro9.10.1. Company overview9.10.2. Key executives9.10.3. Company snapshot9.10.4. Product portfolio

For more information about this report visit https://www.researchandmarkets.com/r/wd66ni

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Outlook on the Gaming Simulation Global Market to 2030 - Adoption of AI and Cloud Computing for Better Experience Presents Opportunities - Yahoo...

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Global Cloud Workload Protection Market Research Report 2022: Increasing Demand for "Shift Left" Security is Driving the Future Growth…

Posted: at 4:05 am

DUBLIN, April 08, 2022--(BUSINESS WIRE)--The "Global Cloud Workload Protection (CWP) Growth Opportunities" report has been added to ResearchAndMarkets.com's offering.

The global cloud workload protection market is undergoing a digital transformation, with companies worldwide gradually moving their infrastructure to the cloud.

The rise in the adoption of cloud computing and the ineffectiveness of legacy security solutions have presented growth opportunities for the global cloud workload protection market, which is expected to experience a surge in demand for modern and unified cloud-native security platforms. Solutions will be increasingly integrated with artificial intelligence/machine learning platforms, driving the automation and efficiency of the global cloud workload protection market.

This study takes a detailed look at the growth dynamics of the global cloud workload protection market, with a specific focus on four regional segments:

The study provides insights into the global cloud workload protection landscape. It includes market sizing and revenue forecasts, competitive analyses, regional analyses, segmentation by product type and across verticals, growth driver and restraint analyses, and an assessment of future market opportunities.

The study also provides pertinent details about Aqua Security, Broadcom, Check Point Software Technologies, Cisco Systems, CrowdStrike, Kaspersky, McAfee, Palo Alto Networks, Qingteng, Sysdig, Sophos, Trend Micro, and VMware.

Key Issues Addressed:

What are the key trends in the cloud workload protection market? What are the main requirements emerging out of the market? What are the different approaches to growth being adopted by market players?

What are the innovations disrupting the industry?

What are the growth opportunities that are emerging as a result of these innovations and trends in the market?

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Key Topics Covered:

1. Strategic Imperatives

2. Growth Opportunity Analysis - CWP

Global CWP Market Scope of Analysis

Global CWP Market Segmentation

CWP Architecture - Comparison of Agent-based and Agentless/API-based Solutions

CWP Architecture - Hybrid Monitoring and Protection Model

Recommendations for CWP

Customer Segmentation

Research Methodology

Market Segmentation

Key Competitors

Key Findings on Cloud Strategy among Businesses

Why Move to the Cloud?

Workloads Increasingly Move to Public Cloud

Soaring Adoption of Hybrid and Multi-cloud Models

Repatriating Workloads from Public Cloud to Premises

Workloads by Cloud Type

Future of CWP

Key Growth Metrics - Global

Growth Drivers

Growth Driver Analysis

Growth Restraints

Growth Restraint Analysis

Forecast Assumptions - Global

Revenue Forecast - Global

Revenue Forecast Analysis - Global

Revenue Forecast by Region - Global

Revenue Forecast Analysis by Region

Revenue Forecast Analysis by Product, Agent-based and Agentless CWP - Global

Pricing Trends and Forecast Analysis - Global

Revenue Share by Verticals - Global

Revenue Share by Vendors - Global

Total Global CWP Landscape

Competitive Environment - Global

3. Vendor Analysis

4. Growth Opportunity Analysis - NA

Key Growth Metrics - NA

Revenue Forecast - NA

Forecast Analysis by Product, Agent-based and Agentless CWP - NA

Revenue Forecast by Product, Agent-based and Agentless CWP - NA

Revenue Share by Vendors - NA

5. Growth Opportunity Analysis - EMEA

Key Growth Metrics - EMEA

Revenue Forecast - EMEA

Revenue Forecast - EMEA

Revenue Forecast by Product, Agent-based and Agentless CWP - EMEA

Revenue Share by Vendors - EMEA

6. Growth Opportunity Analysis - APAC

Key Growth Metrics - APAC

Revenue Forecast - APAC

Forecast Analysis by Product, Agent-based and Agentless CWP - APAC

Revenue Forecast by Product, Agent-based and Agentless CWP - APAC

Revenue Share by Vendors - APAC

7. Growth Opportunity Analysis - LATAM

Key Growth Metrics for CWP Market - LATAM

Revenue Forecast - LATAM

Forecast Analysis by Product, Agent-based and Agentless CWP - LATAM

Revenue Forecast by Product, Agent-based and Agentless CWP - LATAM

Revenue Share by Vendors - LATAM

8. Growth Opportunity Universe

Growth Opportunity 1: Increasing Need for Cloud Security Training

Growth Opportunity 2: Increasing Need for Managed and Professional Security Services around CWP

Growth Opportunity 3: Need to Integrate CWP with xDR and Threat Intelligence Services

Key Success Factors

The Last Word

For more information about this report visit https://www.researchandmarkets.com/r/5jwadv

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Global Cloud Workload Protection Market Research Report 2022: Increasing Demand for "Shift Left" Security is Driving the Future Growth...

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Glasgow cloud computing group Iomart ‘pleased with progress’ despite drop in revenue – The Scotsman

Posted: at 4:05 am

In a trading update to investors, the group said it was pleased that renewal levels had improved in the latter half of the year, meaning that recurring revenue - some 93 per cent of full-year group revenue - was more stable in the second half.

Bosses said the inflationary pressures being experienced across the UK business market were being monitored and addressed.

For the year to the end of March, the group expects to report revenues of around 103m, compared with 111.9m the year before, adjusted underlying earnings of approximately 38m, against 41.4m last time, and adjusted profit before tax in the region of 17m, down from 19.6m.

The firms strong profit margins remain stable, Iomart added, and cash generation continues to be strong, with the year-end net debt expected to be about 43m, reducing from 54.6m ahead of expectations.

Iomart added: The group has made good progress in the development and execution of its growth strategy. The year has seen the launch of several new service offerings, the creation of a strategic cyber-security partnership, and continued investments across sales and marketing.

Chief executive Reece Donovan told investors: I am pleased by the progress we have made during the year and reporting financial results in line with market expectations.

We have launched a number of new solutions to the market, recently entered into an exciting alliance to accelerate our managed cyber security offering, reshaped the commercial team and invested in our customer service tools and resources.

It is these steps, along with the on-going execution of our strategic plan, which gives us confidence that we will continue to be successful within the wider growing cloud sector.

The firm expects to report its results for the year to March 31 on June 14.

In December, Iomart secured a 100m financing facility to back its growth plans. The firm said it had agreed a refinancing, replacing an existing single bank revolving credit facility of 80m that was due to mature at the end of next September, with a new 100m facility.

It is being provided by a group of four banks - HSBC UK, Royal Bank of Scotland, Bank of Ireland and Clydesdale Bank, part of Virgin Money group.

The group also insisted in December that its growth strategy was on track and beginning to deliver tangible results after a mixed first-half performance.

Meanwhile, Glasgow-based Beeks Financial Cloud Group confirmed that it had raised total gross proceeds of about 15m through a share placing. The fundraising was significantly oversubscribed.

Chief executive Gordon McArthur said: We would like to thank all new and existing investors who have participated in the fundraising for their support.

With financial services organisations accelerating their cloud transition strategies, we see a huge opportunity ahead for our private cloud, proximity cloud and exchange cloud offerings, and are focused on the conversion of our record sales pipeline and execution of our product roadmap.

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The future of work in the heterogeneous diverse cloud – BCS

Posted: at 4:05 am

Today, we have seen the proliferation, popularisation and eventual propagation of cloud computing, mobile device ubiquity and new algorithmically-enriched approaches to Artificial Intelligence (AI) and Machine Learning (ML)... all of which have further changed the nature of work.

The sum consequence of much of the development on the post-millennial technology curve is a new approach to digitally-driven work. To explain this shuddering generalisation, digital work means tasks, processes, procedures and higher-level workflows that can be encoded into data in order for their status to be tracked, analysed and managed.

Part of the total estate of big data that now hovers over all digital assets in the modern workplace, digital workflows can now be built that are more intelligently shared between humans and machines.

Where processes are accurately definable, typically repeatable and easily replicable, we now have the opportunity to use autonomous software controls such as Robotic Process Automation (RPA) and chatbots to shoulder part of our daily tasks. Although there is a period of process mining and process discovery that we need to perform before we can switch on the autonomous advantage, once we do so we can start to focus human skills on more creative higher-value tasks.

Where all of this gets us is to a point where we can be intelligently granular about how we place elements of our total digital workload across data services, across application resources, across cloud backbones and ultimately, across people.

To enable digital work, we still have some challenges to overcome i.e. we need to be able to communicate between each other as humans and machines in a consistent yet essentially decoupled way. Because not every work task has had its genome decrypted, we are still searching for ways to encapsulate certain aspects of enterprise workflows.

This is tough because were aiming towards a moving target i.e. market swings and the dynamism of global trade. But, as we start to build new work systems, we can start to operate workflows that are intelligently shared across different interconnected cloud services, for a variety of core reasons.

Enterprises can now create a layered fabric of work elements and functions shared across different Cloud Services Providers (CSPs), sometimes separated-out on the basis of different cloud contract costs, sometimes for reasons related to geographic latency or regulatory compliance, or often dispersed across more than one cloud due to the various optimisation functions (processing, storage, transactional Input/Output capability, GPU accelerated etc.) that exist in different services.

If private on-premises cloud combined with public cloud is what we now understand to be the de facto most sensible approach we know as hybrid cloud, then this (above) deployment scenario is one move wider. Where workloads are placed across clouds, we are in hybrid territory; but where individual data workflows are dispersed across and between different cloud services, we get to poly-cloud.

The architectural complexity of interconnected cloud services that are established around these terms is not hard to grasp. In order to make this type of lower substrate diversity manageable, cost-effective and above all functional, enterprises will need to embrace a platform-based approach to hyperconverged cloud infrastructure.

Most organisations struggle to effectively manage heterogeneous cloud environments and move workloads back and forth between and among them. Establishing visible benefits from this type of approach to cloud is only possible if the business is able to think of its cloud infrastructure as an invisible foundational layer.

Managing a multi-cloud and poly-cloud infrastructure means being able to simplify cloud management and operations requirements across an enterprises chosen estate of interconnected cloud services. With different providers all offering different software toolsets, different management dashboards, different configuration parameters and so on, there is no point-and-click solution without a hyperconverged higher platform layer in place.

As theoretical as some of the discussion here sounds, many practical examples already exist. South Africas largest bank Nedbank has been bold with its cloud-based approach designed to cope with cost-effectively delivering upon its diverse bandwidth requirements.

Needing low-latency remote worker provision for its 2,000-strong developer function in India (but capable of straddling less performant latency parameters for other functions), the company had to build systems capable of superior service that would be a win-win for staff and customers alike.

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How Is Cloud Computing Reshaping the Future Of Data Analytics? – CIO Applications

Posted: at 4:05 am

Cloud-based analytics help firms become more competitive by delivering data and analytical insights to end-users, allowing them to gather more information.

Fremont, CA: Organizations of all sizes are increasingly embracing the cloud to improve the efficiency of their operations. They are getting forced to keep up with massive amounts of data which can influence corporate decisions. Unfortunately, organizations cannot make faster and better business decisions due to disparities in analytics tools and unclear roles and responsibilities. That's why cloud-based analytic tools are stepping up their game. Because of the promise of cloud analytics, IT leaders are investing substantially and reaping the rewards inside the digital transformation arena.

Moving Data Analytics To The Cloud

Cloud computing is ideal for data analytics. Cloud-native applications have a shorter time-to-value, resulting in digital transformation. Companies used to build their infrastructures to handle high demand till a few years ago. However, due to the infrequency of large analytic workloads, having a flexible computing resource to manage costs became critical. Many service providers are now offering cloud analytics to businesses, incorporating an agent or a script into code that transports data to servers for analysis. It helps marketing departments to increase sales, develop websites, and create customized content for their target demographic. Aside from that, it enables organizations to analyze their market and economic dynamics, along with predict consumer behavior.

Benefits Of The Cloud

The cloud enables ready-made infrastructure and the flexibility to change the infrastructure for businesses to manage variable traffic swiftly. Organizations can use cloud computing to add data storage and data analysis capabilities to their operations, allowing them to change their operations. When a company's business grows, it can immediately increase its cloud storage or lower it when the business slows, which is more cost-effective than purchasing new gear each time. In addition, it enables a corporation to respond to changing market demands and adapt its analytical capacity to match client expectations and capitalize on every opportunity.

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Why China Is Going After Its Tech Giants | ChinaFile

Posted: at 4:03 am

Just days after its lucrative listing on the New York Stock Exchange, China ride-hailing giant Didi Global was hit with another round of sanctions by the Cyberspace Administration of China (CAC). On July 4, the countrys Internet regulator ordered the removal of its mobile app from Chinese app stores. This came two days after the same regulator opened an investigation into the company, suspending it from adding new users. The app, alleged CAC, has serious violations of laws and regulations pertaining to the collection of personal information.

Didi is not the only company to face heightened scrutiny in recent months. Other Chinese Internet giants, including Meituan, Tencent, JD.com, Bytedance, and Alibaba have faced government regulatory investigations and even been slapped with hefty fines. Most notably, of course, Ant Financial saw its mega IPO in Hong Kong and Shanghai halted by the Chinese government. These actions were often carried out by Chinas State Administration of Market Regulation, the anti-trust regulator. Its policy decisions on such major companies undoubtedly are driven by the Chinese Communist Party (CCP) leadership at the highest level.

Even smaller Internet companies are not immune. Most recently, CAC opened probes into Zhipin.com, an online recruiter, and truck-hailing apps Huochebang and Yunmanman, which merged to become Full Truck Alliance. Both Zhipin.coms owner, Kanzhun, and Full Truck Alliance went public last month in the U.S. Now, they are also under review to prevent national data security risks and safeguard national security.

Why is the Chinese government targeting its own tech companies in such a heavy-handed fashion, and why now? Over the last decades, as a technologist, entrepreneur, and legislator in Hong Kong, I have witnessed the evolution of Chinas regulatory regime, as it moved from the invisible to the visible, and from one that encouraged disruptive innovation to one that now favors complete state control. However, as a recent Global Times editorial put it, Chinas Internet enterprises must say goodbye to the phase of barbaric expansion, and building up the concept of compliance will become the essential strategy of their development.

To understand why, it is best to try to think from the perspectives of Chinas leaders. Their intended messages are aimed at different audiences: domestic Internet firms and the domestic public at large, as well as those outside of the country.

The latest series of actions taken against Didi and Full Truck Alliance are similar in that both companies had recently listed in the U.S. Its unlikely authorities were unaware of their listing exercises in the U.S., so perhaps the timing of CACs regulatory actions was intended to send a message. It must have been motivated by fears that the companies compliance with regulations in the U.S. would compromise their total control by the Chinese state, perhaps even requiring them to cede their data to a foreign government.

These fears might seem paranoid, especially to those who dont assume financial regulators will engage in political and economic hostage-taking tactics. But for a government that views Chinas private companies data almost as a state asset, the risks must seem stark.

There is some irony if one considers that only a year or so ago, at the height of American rhetoric about disengaging with China, there were talks of barring Chinese companies from listing in the U.S. in order to protect U.S. investors. But, despite such periodic hostility in the U.S., many Chinese companies are eager to list there. For the firms themselves, there are many reasons: more liquidity, greater access to capital, and greater visibility for the global market. For others, like Didi Global, listing in the U.S. just comes with the global nature of their business.

Chinas leaders, however, care only about maintaining control over these firms and all their data. This is reflected in the recent passage in June of a national data security law in China that dictates how data is collected and utilized. Laws like this one, along with probes and fines, should be understood first and foremost as a preemptive defense against not only the tech companies themselves but also the data they hold.

From the perspective of its leaders, China is not a victim of decoupling. It is the decoupler. Hence the increased emphasis on self-reliance in the Chinese Communist Partys messages throughout its 100th anniversary celebration.

So, the first message sent by the recent investigations should be understood as targeted toward an audience of Chinese global Internet firmsessentially making sure they know whos boss. (Something similar was afoot in the misfortunes of Alibaba founder Jack Ma when authorities nixed his Ant Groups IPO in Hong Kong.)

Despite the clear signs of Beijings desire to maintain control over Chinese companies, some foreign investors may still be in denial. International financial market players must be reminded again of Beijings goals, lest they want so much to profit from listing these Chinese firms that they end up putting investors at risk.

Other collateral messages that the current wave of regulatory actions are intended to send are targeted at a second audience: Chinese citizens. For them, the message echoes the one often referenced after the Ant Group IPO fiasco, namely that Deng Xiaopings era of let some people get rich first has come to an end.

To some extent, Chinas mega-rich, especially those from the tech sector, may have brought themselves unwanted official attention by flaunting a work-to-death ethos for their employees while the gap between the rich and the poor widened out of control. The choice for the Party at a time when it needs to consolidate the highest level of support for its rule is clear: feed the frenzy of populism against the rich. This is consistent with Xi Jinpings repeated emphasis on the need to struggle.

Finally, there is also a more indirect message intended for Western policymakers, especially American. Strict regulatory control over Chinas tech companies not only serves its own domestic agenda, but China also would not mind to be seen as an example for a playbook for the West, as the U.S. contemplates what to do about its own big tech.

Hoping that some in the U.S. may consider the Chinese model as quick and decisive, China would not mind to be viewed as the leader in anti-competitive regulation. If there is any chance for American tech giants to become hobbled by anti-trust regulations, China may see that as a chance to turn it into near-term benefits to its own tech dreams and pull ahead in its tech war with the U.S.

To China, there is little cost to its own tech industry and its innovation strategy, which was always controlled and manipulated by government policies. A heavier-handed approach to the U.S. tech industry could bring much bigger consequences and disruptions to innovation than those tactics do for Chinese firms.

While it may seem highly unlikely for such a regulatory model to be adopted in the U.S., given the very different systems in the two countries, it is still a possibility. While, for China, any such hope for collateral damage to the U.S. tech industry must still be secondary to its own agenda at this stage, the countrys leaders must be watching closely how the U.S. will conduct its own expected war on big tech, as any impact on U.S. innovation and competitiveness can tip the balance of the China-U.S. tech competition.

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Meet Europes tech giants – World Economic Forum

Posted: at 4:03 am

When we think of tech giants, we tend to think of Silicon Valley.

And rightly so. California has given the world iconic digital brands like Facebook, Google and Uber.

The US leads the way both with listed tech giants and unicorns privately held companies valued at $1 billion or more.

More than half of the worlds unicorns are based in the US, according to research firm CB Insights.

However, the US is still only one part of the global tech story.

China is home to some of the worlds largest tech companies: ecommerce giant Alibaba, search engine Baidu, and ride-sharing platform Didi Chuxing.

And Europe is also proving increasingly fertile ground for tech entrepreneurs.

The chart below shows some of its largest tech companies both listed brands and unicorns:

Although the UK is home to the largest cumulative value of $1 billion-plus tech firms in Europe, the continents biggest companies are found in Scandinavia.

Spotify is by far Europes most highly valued tech company. The Swedish music streaming service is reportedly being valued at around $16 billion. This makes it the most valuable music streaming service on the planet.

It is also the continents biggest unicorn although it will lose that title if, as expected, it floats on the stock market with a valuation that some expect may reach $20 billion.

Spotify is one of three European tech companies to be valued at more than $10 billion by a report published in September called Europes Titans of Tech by investment firm GP Bullhound.

Swedish entrepreneur Daniel Ek is co-founder and CEO of Spotify, Europes most highly valued tech firm.

Image: REUTERS/Shannon Stapleton

The exclusive $10 billion-plus club also includes German ecommerce firm Zalando, and Spotifys Scandinavian neighbour Supercell.

Finland-based mobile gaming company Supercell is famous for such games as Clash of Clans. Last year Chinese tech group Tencent bought an 84% stake in the company, valuing Supercell at $10.2 billion.

According to GP Bullhound, the UK is home is to nearly $50 billion-worth of $1 billion-plus tech companies, making it the epicentre of Europes digital revolution.

Its biggest listed tech company is online retailer ASOS, while CB Insights identifies the UKs top unicorns as data centre provider Global Switch and online food delivery service Deliveroo.

In the World Economic Forums Global Competitiveness Report 2017-18, the UK is ranked 8th overall, thanks to its technological readiness and the sophistication of its business sector.

However, the report warns that the UKs Brexit negotiations to leave the European Union could undermine its global competitiveness.

Freedom of movement for EU citizens forms a central part of the ongoing negotiations between the British government and the EU.

GP Bullhounds report claims much of the UKs tech success is due to Londons gravitational pull for entrepreneurs from across the continent.

This is backed up by the fact that of the 29% of tech founders in Europe who are expatriates, 60% chose the UK as the place to start up their business.

In total more than a third of European tech founders are based in the UK.

The views expressed in this article are those of the author alone and not the World Economic Forum.

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Austin emerges as a city of unicorns and tech giants – TechCrunch

Posted: at 4:03 am

Austin made headlines in 2021 for being the place for startup founders and venture capitalists alike to set up shop. Thats why TechCrunch has chosen to shine a spotlight on the city with a special episode of TechCrunch Live centered on the growing startup scene in Austin, Texas.

As Austins skyline expands, the city continues to solidify its standing as a tech hub. And the numbers are there to back it up.

VCs invested over $5.5 billion across 412 deals in 2021, more than double the amount of capital invested in 2020, according to PitchBook data. Rounds are getting larger, too, signaling a further maturing of the market: All of the top 10 deals for Austin in 2021 amounted to $100 million or more.

Today, Austin is more than just the capital of Texas. Its a city of unicorns and tech giants.

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TechCrunch Live is a free weekly event featuring investors, founders, and startups with the goal of helping entrepreneurs build better venture-backed businesses.

Several companies surpassed a $1 billion valuation in 2021, including The Zebra, Firefly Aerospace, Abrigo, ZenBusiness and Iodine Software. SparkCognition achieved unicorn status earlier this year while ICON recently raised $185 million in a Tiger Global-led round that valued it at nearly $2 billion. In 2020, Tesla settled into the so-called Silicon Hills district and Oracle moved its headquarters from Silicon Valley. Austin is also home to secondary offices of many of the largest tech companies in the world, including Google, Apple, Oracle, Amazon, Facebook and SpaceX.

Venture capitalists from both coasts are also increasingly drawn to the city. A number of investors now call Austin home after relocating from the Bay Area and New York City. They include Jim Breyer of Breyer Capital and Palantir co-founder Joe Lonsdale, who said last year he was moving his venture capital firm, 8VC, from Silicon Valley to the city, and Geoff Lewis, founder and managing partner of Bedrock Capital.

Austin wasnt an overnight success. For years it was known primarily for its software scene in addition to being the live music capital of the world. But today, new growing sectors include crypto/web3, real estate tech, CPG and insurance technology. As in other maturing markets, companies that have seen success in the past are now spawning a new generation of entrepreneurs as well as attracting others from various locales.

Drawn to the laid-back lifestyle and lower cost of living relatively speaking nearly 185 people are moving to Austin on a daily basis. Many of those people work in the tech industry, and many are moving from California.

Bullish investors have more money than ever to deploy. In 2022 alone, so far, two Austin-based venture firms have announced significant raises in the city the most recent being Next Coast Ventures. That firm, founded in 2016, announced on March 29, 2022 that it closed $310 million in capital across three funds. Earlier in the month, S3 Ventures raised $250 million for its Fund VII, touting itself as the largest venture capital fund focused on Texas-based startups. S3 Ventures founder and managing director Brian Smith notes that when he started the firm in 2005, venture capital in Texas was finally starting to recover from the dot.com bust. At that time, most VC activity was dominated by the now-defunct Austin Ventures and Sevin Rosen Funds.

Fast forward a few more years, and both AV and SRF had started to wind down. A small crop of mostly sub-$100 million funds appeared, several founded by former AV GPs, Smith recalls. Jump to today and those new Texas-focused firms, including ours, have raised multiple funds with the latest ones well over $200 million. Additionally, we have seen several national firms move their HQs or a regional team here. While they are not primarily focused on Texas, they are starting to invest locally, as well.

This means, he adds, that founders have a broader set of choices for capital partners.

Notably, S3s investment thesis is focused on Texas. As such, the vast majority of the investments will be in companies headquartered, or with a sizable presence, in the state. It makes initial investments in companies at the seed, Series A and Series B stage and can invest $20 million-plus over the life of a company.

Chris Shonk, co-founder and managing director of ATX Ventures, said his firm is unique in that everyone there is both technical and has operating experience.

ATX will be the first midcontinent VC to have top decile performance two funds in a row, he told TechCrunch. It is a true reflection of the vibrancy in the Texas ecosystem and having an operator approach at early-stage VC.

Shonk has also witnessed the change in the dynamics in the citys startup scene as it has matured over the years.

Historically Austin over-indexed on founder and C-suite talent but under-indexed on experienced junior talent who had worked at large tech companies and venture-backed unicorns, he said. That has now changed and Austin has an ample market of CXO-executive, VP and junior talent who have VC-backed experience.

Mike Smerklo moved to Austin from Silicon Valley in 2016 to start Next Coast Ventures with Tom Ball.

I had spent over 17 years working in the Valley as an entrepreneur and loved every minute of it. However, I felt that a lot but not all of what made the Valley so amazing was replicable, he told TechCrunch. What really convinced me to move here and start Next Coast was the evidence of several key factors that make a great startup ecosystem a strong entrepreneurial culture, great university systems, successful technology companies and an amazing place to live exist in Austin. All that was needed was more capital to support it.

Morgan Flager, managing partner of Silverton Partners one of the states most active investors believes that Austin has finally gotten respect as a legitimate top tech ecosystem.

Sixteen years ago, he said, people questioned his move from Silicon Valley to Austin to join Silverton Partners.

LPs asked me if we, or anyone else, could build a top-tier VC firm here and doubted if Austin could produce billion-dollar companies with any regularity. Entrepreneurs wondered if there was enough capital and talent in Austin, and later-stage investors questioned how much time they should spend in Texas, Flager recalls. Now, those questions have largely been answered and been replaced by different, larger questions like will Austin ever surpass Silicon Valley? In short, weve gone from aspiring to be a market that matters to being the hottest tech city in the country.

Krishna Srinivasan of LiveOak Partners, which closed on a $210 million fund last year, said the fact his firm was able to raise the fund in less than four months, was indicative of the strong LP interest in the local opportunity set and the returns we have put up at LiveOak in the past decade.

Last years IPO of Disco, in which LiveOak was a founding investor, at a market cap of over $2 billion, points to the notion that Texas is relevant again as a legitimate software powerhouse, he added. The quality of companies and talent is better than ever before, which augurs for a great entrepreneurial run in the years to come.

Meanwhile, the area has long had a strong base of angel investors funding companies at the very early stage. The Central Texas Angel Network boasts over 110 members, and its website says that its members have pumped $120 million into nearly 200 startups since its 2006 inception.

Marc Nathan, who publishes the weekly Texas-Squared Startup Newsletter, points to a robust angel community that includes serial entrepreneur and data.world CEO and co-founder Brett Hurt, Andrea Kalmans of Lontra Ventures and Justin Siegel, among many others.

Says Shonk:

The angel scene in Austin has always been vibrant. It has recently been amplified by the number of newly established family offices largely from the real estate, energy and financial services boom looking to test their skills at making direct investments. Also a number of coastal funds have deployed scouts to help address Bay Area talent flight to Texas so they now have lines in the water as well.

Speaking of Silicon Valley, nearly everyone working in tech in Austin is growing weary of hearing about comparisons to it. The overarching belief is that Austin is its own, unique market and that it will not, and should not, be a carbon copy of Silicon Valley.

Having said that, there are also many commonalities between the two culturally and aesthetically. Both have lots of green and rolling hills. Both boast outdoor lifestyles and a physically active population. And, of course, both are home to innovation, from universities, startups and Big Tech alike.

Like Silicon Valley, Austin is seeing reinvestments from successful founders. Brett Hurt is an example of a successful founder who continues to help the citys startup scene flourish by also acting as an active angel investor.

With four exits and over 120 angel investments under his belt, Hurt is vocal about his passion for angel investing, telling TechCrunch: It was not all that long ago that entrepreneurs in Austin often had to strongly consider picking up and moving to Silicon Valley to successfully court venture capital and angel investors but a lot has changed in the past few years. In fact, in many cases, were even seeing the opposite happen. Today, Austins angel investing space is incredibly robust.

In fact, Hurts family office, Hurt Family Investments, was one of the first investors in 77 Austin-based startups, including several unicorns such as Everly Health and ZenBusiness.

We are always looking for new opportunities, especially in SaaS, to help continue the momentum in our exciting local ecosystem, he added.

Former Bay Area resident Smerklo believes that Silicon Valley will remain the center of technological innovation for a long time.

I dont try to compare Silicon Valley with any other region Austin included, he said. Doing so is a bit like trying to compare New York City with Hong Kong. They are different and that is okay. I think the better view is that the global nature of technology supports several great geographic pockets where innovation and entrepreneurship can flourish.

Flager grew up in Silicon Valley and acknowledges that the two have some similarities.

The growth and energy in Austin feels like Silicon Valley in the 90s, he said. The diversity of talented people moving here is also reminiscent of the Valley.

But, in his view, the two have notable differences. For one, state and local governments in Texas are focused on pro-business policies, Flager said, while California has been criticized for not being a business-friendly environment. Indeed, the lack of state income tax in Texas and a willingness on the part of government officials to offer generous incentives have been a draw for many companies.

Culturally, Flager believes that overall, attitudes differ as well. Austin is often described as a tech community where founders support each other rather than compete. Techstars Austin Managing Director Amos Schwartzfarb agrees. I think one of our biggest strengths is what a wonderfully collaborative city Austin is, he told TechCrunch. Its very unique in how everyone really wants and helps everyone around them be successful.

In Austin, for example, you will still see cheers and enthusiasm for funding rounds that would not elicit more than a yawn in Silicon Valley.

Its a political climate where freedom of thought is rewarded and everyone can feel welcome, Flager added. We have to remember what got us to this point and thats humility and kindness, not pretense Somewhere along the way, Silicon Valley seemed to let some of these things slip away. Perhaps some people there thought it was too big and important to stumble or regress I guess well see. I hope Austin never forgets what got us here.

Schwartzfarb also tires of the comparisons, noting that people outside the city are constantly comparing Austin to Silicon Valley. But here in the city? Not so much.

As a city, community and ecosystem, we do not make that comparison. We are uniquely our own thing on our own path and I think when others make that comparison it creates an incorrect mental image of what Austin is, he told TechCrunch. The valley is unique and nothing like it has or will ever exist again. And similarly, in a very different way, Austin is unique, nothing is like us and nothing has or will ever exist again quite like us.

The massive growth Austin has seen has brought some significant challenges as well.The citys infrastructure has struggled to accommodate the influx of people and that is evidenced by the widespread traffic jams.Also, folks moving to town and buying up houses in cash have driven median housing prices up by over 40% in 2021 alone.

This means that many people and families are being priced out of the city and having to move out to surrounding areas, such as Round Rock, Cedar Park, Leander, San Marcos and Buda. The lack of affordable housing has also contributed to the dramatic increase in homelessness.

Still, the median price of a home in the Austin metro area of just under $500,000 remains significantly lower than the current $1.4 million median home price in San Jose, California, for example.

While Next Coasts Smerklo raves about many things about Austin, from its engineering talent to angel networks to music and breakfast tacos, he also acknowledges that there are weaknesses around growth management and infrastructure.

The infrastructure is the real challenge as the city has historically not supported investments to match the growth, he said. There are several projects underway that will help, but we need to do more to make this an affordable, enjoyable and easy urban environment that works for everyone.

Other situations that have come up also mirror those that plague San Francisco. Decades ago, Austin was known more for its laid-back vibe and charm that inspired the Keep Austin Weird slogan. These days, many of the small businesses that gave us that charm have had to shut down due to rising property taxes or rents and are being replaced by shinier, often upscale and cookie-cutter establishments.

But perhaps the biggest, and most enduring, challenge the city faces is its lack of diversity. Austin is known as the most progressive city in Texas, but some argue that progressiveness is not always consistent and depending on the issue, it can be as backward as some other parts of the state. The city may claim to be welcoming, yet the percentage of Black residents, for example, has steadily decreased over time to an estimated 7% in 2020. Many of Austins neighborhoods resemble those seen in Silicon Valley with largely white and Asian residents and far fewer Hispanic and Black people.

S3 Ventures Eric Engineer believes that Austins greatest strength lies in that it is a place people of all types want to live. And many of those people, he says, are drawn to the citys welcoming, meritocratic and free-thinking culture. As mentioned above, still others are attracted to the business-friendly environment and attractive tech jobs.

At the same time, Austin has real, but surmountable, challenges related to cost of living, transportation, homelessness and diversity, he told TechCrunch, which have the attention of our leaders and voters with several key investments already underway.

For example, while nearby Houston has a bad rep for being an unattractive, sprawling city with heavy traffic, it boasts the most ethnically diverse population in the nation and has for several years.

Engineer grew up in Houston and then lived four years in Dallas before spending the last decade in Austin.

From my perspective, Austin appears less diverse and more segregated than the other two though that is visibly changing, he said.

So what does one do if theyre trying to boost diversity in a city that is not known for its diversity?

For Preston James, it was to help start DivInc a nonprofit that aims to bridge the gap between underrepresented entrepreneurs and the resources they need to build profitable, high-growth companies in 2016.

Today, he notes, Austin is home to an insane talent pool and several new emerging funds exclusively focused on Black, Latinx and women founders, including BEAM, The Fund, New Type Ventures, Agave Fund, Silicon Hills Capital and True Wealth Ventures (which was considered the first of its kind in the city).

While James is excited about all the venture activity taking place, he wonders how much is going to underrepresented founders and women.

We have to be proud enough in our achievements to also acknowledge where were still falling short too, especially for underestimated founders, James said.

Still, he believes that while Austin still has a long way to go in improving diversity, there are rarely quick fixes to historically systemic racial and gender equity issues in our society.

Some ways to help move things along, in James view, are for existing funds to be willing to fund a lot more diverse founders early often and equitably at the pre-seed and Series A stages.

He also thinks the city needs to be home to more emerging funds focused on investing in underestimated founders.

This will help build the pipeline of unicorn companies with diverse founders. In addition, these emerging funds will also create a pipeline of potential diverse VC partners for traditional VC firms, James said.

He also believes all the Big Tech companies could be doing more with their environmental, social and governance (ESG) initiatives, such as making more grant investments with a special focus on supporting underrepresented founded companies and organizations like DivInc that provide strong programming and support systems for them.

Sam Haytham, founder of Austin startup Kiro Action, says he is painfully aware of the lack of brown and Black diversity in the startup scene. Haytham is not currently seeking venture money but when he does, he expects it to be a more difficult process than that of many of his counterparts.

I think the opportunities for diverse founders are very limited, he told TechCrunch. When you look at VC groups, theyre very male and very white. And if you want to get funded, and are white and male, you can get funded even before you have an idea.

Meanwhile, diverse founders are literally sitting there scratching to get every little bit to push their product to market. Its even more difficult for minority and women founders with the funding systems in place, he added.

For now, Kiro Action a recent SXSW pitch winner is self-funded and focused on addressing two of the biggest problems that Austin faces: homelessness and affordable housing.

Our true business is social good, where the housing can be used for general/veteran homelessness, sheltering refugees and migrant farm worker housing, Haytham said. The same product can be used to fill multiple social good and consumer needs, including crisis response housing for insurance companies, pop-up hotels and backyard flex space for consumers.

Maria Miller, co-founder and COO of venture-backed Spot, moved to Austin after commuting between New York and Dallas.

I found Austin to be a great balance of art, entrepreneurship and people, she said. Miller co-founded Spot Insurance, a health insurance tech startup, in 2017. The startup offers injury insurance to protect against unexpected medical expenses, has raised over $23 million in venture funding and is on track for 500% growth this year, according to Miller.

To Miller, the lack of diversity that may exist in Austin is not exclusive to the city and has not taken away from the support she has received as a founder.

I believe there is a lack of minority and women founders everywhere, she told TechCrunch. Our founder community in Austin is incredibly supportive, everyone always willing to make an introduction to talent or investors, sharing the ups and downs and allowing a level of vulnerability I havent experienced elsewhere.

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Austin emerges as a city of unicorns and tech giants - TechCrunch

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