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Microsoft’s Cloud Recovery Is Outshining Rivals Amazon, Google

Microsoft Overtakes Amazon and Google in the Cloud Computing Race

Leave a Comment / Microsoft, News, Tech News / By Suhani Jain

In the competition to recover from a two-year slump in cloud computing expenditure, Microsoft Corp. is outpacing its main competitors, Google and Amazon.com Inc.

The September quarter revenue increase for Microsoft’s Azure cloud division was 29 percent, above experts’ projections. This rise was partly attributed to business clients’ engagement in emerging artificial intelligence technologies. Google parent Alphabet Inc. took a more measured stance in a separate report released on the same day in the previous week, stating that cloud customers are still in the process of decreasing costs. Additionally, Amazon.com Inc.’s cloud profit picture on Thursday was mixed, with operating revenues above analysts’ projections but sales were somewhat below expectations.

Following a frenzy of spending during the epidemic, firms devoted a large portion of 2022 and 2023 to what the largest software businesses metaphorically dubbed “optimization”, maximizing the usage of products they have paid for and seeking out areas where they might save costs. As a result, the largest cloud providers are searching for areas where they can cut costs as they compete for significant deals in an increasingly difficult climate. As a result, they are looking for new methods to attract companies, such as by incorporating the newest artificial intelligence (AI) solutions that guarantee increased productivity.

“The world is going to be driven by workloads accelerating into the cloud,” said Stefan Slowinski, an analyst at BNP Paribas’s Exane. “CEOs make that decision based on gut, and right now they’re still being cautious.”
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The latest business choices on which cloud provider to choose have most likely been affected by the growing interest in creating and deploying applications based on artificial intelligence. Microsoft provides methods for utilizing different artificial intelligence technologies and has established itself as a frontrunner in the rapidly expanding field because it collaborated with OpenAI, the company behind the well-known ChatGPT content generation tool.

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Microsoft stated that this partnership, which allows Microsoft’s cloud customers to utilize the startup’s technology for designing their apps through a service dubbed Azure OpenAI, has helped drive the rise of new clients. Microsoft profits from OpenAI’s growing need for processing power since it made investments of a total of thirteen billion dollars in the company and provides its cloud services.

Suhani Jain

I am a student pursuing my bachelor’s in information technology. I have a interest in writing so, I am working a freelance content writer because I enjoy writing. I also write poetries. I believe in the quote by anne frank “paper has more patience than person

Alphabet Shares Fall After Cloud Unit Misses Estimates

Leave a Comment / Google, News, Tech News / By Sandhya Gupta

Alphabet Inc. faced a significant blow as its shares plummeted by the most in a year on Wednesday following the release of its quarterly earnings report, which revealed weaker-than-expected profit in its cloud computing unit. This has raised concerns about Alphabet’s competitive standing in the cloud computing market, which is considered pivotal to its future success.

As Google’s flagship search business matures, investors have been looking to the cloud unit to spearhead growth. However, the cloud unit reported operating income of $266 million, falling significantly short of the estimated $434 million, igniting worries about Alphabet’s ability to catch up with cloud computing giants such as Amazon.com Inc. and Microsoft Corp.

Max Willens, an analyst with Insider Intelligence, emphasized the unpredictable nature of the cloud computing business, stating, “Cloud computing is a much lumpier business than advertising and one where Google is facing stiff competition. While the traction it has among AI startups may bear fruit in the long run, it is not currently helping Google Cloud enough to satisfy investors.”

Alphabet’s shares took a hit, dropping as much as 8.9% to $126.40 in New York, marking the most substantial decline since October 2022. This downturn follows a promising year, during which the shares had gained 57% up to the previous day’s close.

Ruth Porat, Alphabet’s President who is currently serving as the company’s acting Chief Financial Officer, attributed the cloud unit’s disappointing performance to some customers’ cost-cutting measures.

Nevertheless, Alphabet’s overall earnings report for the third quarter was generally strong. The company reported sales of $64 billion, surpassing the analysts’ consensus of $63 billion. The net income amounted to $1.55 per share, surpassing Wall Street’s estimate of $1.45 per share.

The search advertising business, where Google holds a dominant position, reported revenue of $44 billion, exceeding the average analyst projection of $43.2 billion. However, Google’s leadership must contend with challenges stemming from the rise of generative AI chatbots that offer more conversational responses to user queries.

Despite the cloud unit’s struggles, Alphabet’s leadership has affirmed their commitment to operating more efficiently and investing in emerging opportunities such as artificial intelligence. CEO Sundar Pichai stated, “We’ll do everything that is needed to make sure we have the leading AI models and infrastructure in the world, bar none.”

Additionally, Alphabet’s ongoing legal battle with the U.S. Department of Justice, concerning allegations of search market power abuse, has contributed to the uncertainty surrounding the company’s future. Analyst Evelyn Mitchell-Wolf from Insider Intelligence noted that the outcome of the trial could influence investor confidence in the sustainability of Google’s business model.

Also Read: Snap Returns to Revenue Growth on Improved Ad Business

On a more positive note, YouTube reported $8 billion in revenue, surpassing the average estimate of $7.8 billion. This indicates that the video-sharing platform is benefiting from the rebound in digital advertising spending.

Alphabet’s Other Bets, which encompass moonshot projects like Waymo (self-driving cars) and Verily (life sciences), generated $297 million in revenue but incurred a $1.2 billion loss, in line with analysts’ projections. Despite the headwinds facing its cloud unit, Alphabet continues to explore new avenues for growth and innovation beyond its core businesses.

Sandhya Gupta

I am a law graduate from NLU Lucknow. I have a flair for creative writing and hence in my free time work as a freelance content writer.

Google’s Pichai Decried Bad ‘Optics’ of Search Engine Deal With Apple

Leave a Comment / Google, News, Tech News / By Sandhya Gupta

In a revealing twist in the ongoing Justice Department’s antitrust case against Alphabet Inc.’s Google, emails from 2007 have emerged, featuring concerns raised by Google’s current CEO Sundar Pichai about the company’s deal with Apple Inc.

The emails, submitted as evidence in the case, showcase Pichai’s apprehensions about the lack of choice for users in selecting a search engine in Apple’s Safari browser. At the time of the emails, Pichai was overseeing Google’s Chrome browser, and he expressed discomfort with the agreement to pay Apple for being the pre-selected search option. “I know we are insisting on default, but at the same time I think we should encourage them to have Yahoo as a choice in the pull-down or some other easy option,” Pichai wrote.

The crux of the Justice Department’s case is the allegation that Google has been paying substantial amounts to Apple and other smartphone makers, including Samsung, in revenue-sharing agreements to stifle competition from rival search engines. The agreements ensure that Google remains the default search option on browsers and smartphones.

The Justice Department claims that Google pays over $10 billion annually for these contracts, though the exact figures are confidential. Google, however, denies that these agreements impede competition, asserting that users can easily opt for alternatives.

Key negotiator Joan Braddi, Google’s vice president for product partnerships, testified on Tuesday about the agreement with Apple. During questioning, the prosecutor raised concerns about the benefits of Google search compared to the cost of supporting Apple, its major competitor in mobile operating systems. Braddi, who negotiated the initial deal in 2002, stated that the agreement between Google and Apple had no limits on how Apple utilized the money received.

The 2002 deal, which started without any monetary exchange, evolved into a revenue-sharing arrangement in 2005. It subsequently expanded to include the iPhone in 2007 and the iPad in 2010. Braddi disclosed that amendments were proposed by Apple in 2007, 2009, and 2012, seeking more flexibility on the search default. In 2014, an amendment was signed allowing Apple to use other search engines in some countries.

Also Read: US Space Force Pauses Generative AI Use Based on Security Concerns

Interestingly, the 2014 amendment took 17 months to negotiate, emphasizing concerns about potential diversions of queries to other companies. Braddi clarified that the intention was not to obstruct Apple’s services but to ensure that the search engine was used in a “substantially similar” manner.

As the case unfolds, questions linger about the financial impact of the revenue-sharing on Apple’s operating income. Google has been monitoring Apple’s earnings calls since 2018 to gauge the significance of the revenue share, but exact figures remain undisclosed. The trial continues, shedding light on the intricacies of these behind-the-scenes dealings between tech giants.

Sandhya Gupta

I am a law graduate from NLU Lucknow. I have a flair for creative writing and hence in my free time work as a freelance content writer.

Google’s New Virtual Assistant to Include Bard AI Tools

Leave a Comment / Google, News, Tech News / By Sandhya Gupta

In a strategic move towards advancing artificial intelligence capabilities, Google has announced the imminent release of a revamped version of its virtual assistant, powered by the cutting-edge Bard artificial intelligence technology. This development is poised to elevate the capabilities of the Google Assistant, allowing users to seamlessly navigate and tackle more intricate tasks with unprecedented ease.

The innovative offering, aptly named “Assistant with Bard,” is set to undergo a test phase in the near future before its official rollout to the general public in the coming months, according to an announcement made by the tech giant on Wednesday. This update aims to imbue the Assistant, known for aiding users on Android and Google devices in task completion and information retrieval, with functionalities reminiscent of Bard—a chatbot designed by Google to rival the widely acclaimed ChatGPT from OpenAI.

In a blog post accompanying the revelation, Sissie Hsiao, a Google vice president, expressed enthusiasm about the transformative potential of generative AI in creating a more intuitive, intelligent, and personalized digital assistant.

“As technology continues to evolve, generative AI is creating new opportunities to build a more intuitive, intelligent, personalized digital assistant,” wrote Hsiao.

As major players in the tech industry compete to harness the power of AI advancements, Google is proactively integrating this technology across its extensive portfolio of products. In the preceding month, Alphabet Inc.’s division revealed plans to incorporate its Bard chatbot into services such as Gmail, Maps, Docs, and YouTube.

The announcement was made during a hardware event hosted at Google’s Pier 57 Manhattan office, where Rick Osterloh, Google’s devices chief, expounded on the company’s broader strategy of infusing generative AI into various apps and services. Osterloh disclosed that, in the next year, the Google Home app is slated to introduce experimental features. These features include summaries of activities around users’ front doors and the ability to inquire about the status of packages using natural language.

Also Read: Ex-Twitter Executives Win $1.1 Million Legal Fees From Musk’s X

Google Assistant is already a formidable player in the virtual assistant arena, competing with the likes of Apple’s Siri and Amazon’s Alexa. Its expansion into AI capabilities reflects the industry’s recognition of AI as the new frontier in this fiercely contested market. Google Assistant can be found across a spectrum of devices, including smartphones, smart speakers, smartwatches, and other computers.

With the integration of Bard AI technology, Google is poised to redefine the capabilities of its Assistant, promising users a more intelligent and intuitive digital companion for their daily tasks. As the virtual assistant landscape evolves, this move underscores Google’s commitment to staying at the forefront of innovation in artificial intelligence.

Sandhya Gupta

I am a law graduate from NLU Lucknow. I have a flair for creative writing and hence in my free time work as a freelance content writer.

Ex-Googler’s Struggling Search Startup Becomes Antitrust Cautionary Tale

Leave a Comment / Google, News, Tech News / By Suhani Jain

It’s difficult to compete with Google’s search engine. Ask every startup that has given it a go.

Prosecutors are focusing their case on the accounts of startup companies who have tried fruitlessly to establish a foothold in the sector as the US Dept. of Justice attempts to persuade a court that Alphabet Inc.’s Google has established an unlawful monopoly in the web search industry. Neeva Inc. is one such business. It was established by ex-Google employees and debuted in 2019 to much acclaim before unexpectedly shuttering its product early this year.

Sridhar Ramaswamy, a co-founder of Neeva, remembered how the business considered it could provide customers with a better search experience by charging them for a subscription instead of serving up ads, which he thought had eventually degraded the overall quality of Google’s product while testifying Monday and Tuesday in the federal courtroom in Washington. However, despite adding additional AI features to the product that could provide succinct answers to inquiries, Ramaswamy and his co-founders were unable to establish momentum with consumers and ultimately came to the conclusion that they couldn’t create a sustainable business.

“People who tried our AI experience genuinely loved it. It was a better, easier, sleeker experience,” Ramaswamy said on the stand Monday. But an economic slowdown, coupled with Google’s paid-for placement on smartphones, meant Neeva couldn’t “grow our subscriber base fast enough,” he added.
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Also Read: Visa Initiative to Invest $100 Million in Generative AI Ventures

Despite this, several search businesses have persisted in making an effort, particularly in light of the prospects presented by emerging technology to revolutionize how users use the internet. The success of OpenAI’s ChatGPT has generated discussion in Silicon Valley regarding a new search paradigm in which software powered by artificial intelligence would provide authoritative answers to queries submitted by users instead of the well-known webpage of links that Google popularised. Although some business owners contend their startups have a greater chance to ride the wave, Google has already mobilized teams within to redesign its search engine for this age of change.

“We are moving towards a new segment, a new kind of internet where you are basically getting answers served to you instead of links,” said Aravind Srinivas, a former Google researcher whose startup, Perplexity AI, offers a conversational web-search product. “And that’s a market that will not be dominated by Google,” he said in an interview.
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Suhani Jain

Apple to Testify It Sees No Need to Deploy Google Alternative

Leave a Comment / apple, Google, News, Tech News / By Sandhya Gupta

In a pivotal moment during the Department of Justice trial against Google, Apple’s senior vice president of services, Eddy Cue, is set to testify on Tuesday, defending the tech giant’s longstanding partnership with Google as the default search engine on Apple devices, including the iPhone.

Cue will assert that this partnership remains the best choice for consumers and that Apple sees no reason to develop its own search tool. The agreement between Apple and Google, established in 2002, has been a lucrative one for both companies, with Google paying billions to secure its position as the default search engine on Apple products. However, this arrangement has drawn scrutiny from the government, which alleges that Google has used its search dominance to stifle competition.

Cue’s expected testimony will emphasize that Apple is committed to providing consumers with choices. While Google is the default search engine, Apple makes it effortless for users to switch to other search providers, such as Microsoft Corp.’s Bing, Yahoo, DuckDuckGo, and Ecosia, by offering these options within the Safari internet browser. Apple also receives a share of advertising revenue when users select these non-default search engines.

Apple’s stance on this issue stands in contrast to its approach in other areas where it competes head-to-head with Google. Notably, Apple rivals Google in mapping software, voice assistants, and operating systems for phones and computers.

John Giannandrea, Apple’s machine learning chief and a former leader of search at Google, also testified last week, highlighting a new feature introduced in iOS 17 and iPadOS 17. This feature allows users to assign a different default search engine specifically for private browsing, making it easier for consumers to switch between Google and other options.

Also Read: Tinder Offers $500-a-Month Subscription to Its Most Active Users

The ongoing trial between the Department of Justice and Google holds significant implications for the future of tech giants and their competitive practices. Apple’s testimony, through Eddy Cue, underlines the company’s belief that Google’s search engine remains the preferred choice for its users. As the trial unfolds, it will be interesting to see how these arguments impact the outcome and whether they will result in any changes to the default search engine landscape on Apple devices.

Sandhya Gupta

I am a law graduate from NLU Lucknow. I have a flair for creative writing and hence in my free time work as a freelance content writer.

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