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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

TCS Seeks to Use Microsoft AI Partnership to Improve Margins

Leave a Comment / Artificial Intellegence, Microsoft, Story, Tech Story / By Sandhya Gupta

In a strategic move aimed at fostering growth, Tata Consultancy Services Ltd (TCS), Asia’s largest outsourcing company, is intensifying its collaboration with Microsoft Corp to develop cutting-edge artificial intelligence (AI)-based software services.

The partnership involves leveraging Azure OpenAI, a collaboration between Microsoft and OpenAI led by Sam Altman, as well as utilizing the cloud-based AI tool GitHub Copilot. The goal is to offer bespoke solutions, such as fraud detection for financial services clients and personalized customer services for retailers.

K Krithivasan, the Chief Executive Officer of TCS, highlighted the potential of these services to enhance margins in an interview with Bloomberg News. He emphasized that the company is working closely with Microsoft to build industry-specific solutions that can be jointly brought to market. However, Krithivasan acknowledged that it might take a couple of quarters before these initiatives reach a critical mass to significantly impact the overall market.

With over 100,000 generative AI-ready employees, TCS is integrating AI technology into various software offerings, a move that has reportedly contributed to the success of securing large deals. The company’s strategy aligns with a broader industry trend among Indian IT firms, including smaller rivals like Infosys, to shift focus from traditional outsourcing to high-value services encompassing big data, machine learning, analytics, cloud computing, and AI.

Krithivasan, who assumed the role of CEO in June, has undertaken structural changes within the company to tap into the business expertise of senior executives and enhance client connections. While expressing optimism about the partnership with Microsoft, he emphasized the need for sustained growth and the removal of organizational frictions.

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The move towards advanced technologies is crucial for Indian IT firms as they face margin pressures due to global economic uncertainties and geopolitical events. Traditionally, these companies provided cost-effective back-office operations, but they are now positioning themselves as partners in digital transformation for global enterprises.

“We should be participating more where the customers are investing for the future,” Krithivasan stated, underscoring the firm’s commitment to enhancing capabilities in areas crucial for clients’ future investments. As the partnership with Microsoft evolves, TCS aims to navigate the dynamic landscape of the IT industry, adapting to emerging technologies to stay at the forefront of innovation and client satisfaction.

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.

Microsoft’s $69 Billion Activision Blizzard Deal Cleared by Britain

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

on Friday, Xbox creator Microsoft completed its 69-billion-dollar acquisition of Activision Blizzard, bolstering its position in the video gaming industry with top-grossing games like “Call of Duty” to more effectively fight with Sony, the sector’s leader.

The largest gaming merger, first announced in January 2022, overcame its final major barrier later in the day when Microsoft consented to sell off streaming licenses for Activision’s titles to ease competition concerns.

The accomplishment is a significant victory for the American tech company in its campaign to draw more customers to its Xbox systems and Game Pass membership service. Sony, whose PlayStation game systems sell more than the Xbox, generates more gaming income than Microsoft.

While Activision’s chief executive officer Bobby Kotick will continue in his position until the end of 2023, Microsoft Gaming’s chief executive officer Phil Spencer will be in charge of the company’s operations.

Spencer has hailed the acquisition as an opportunity for Microsoft to enter the greater than 90 billion-dollar mobile gaming industry.

Famous mobile games from Activision like “Candy Crush Saga” as well as “Call of Duty Mobile” were left out of the cloud streaming agreement that Microsoft made with Ubisoft Entertainment of France to win Britain’s permission.

“Microsoft instantly has more than $3 billion of mobile revenues,” said Wedbush Securities analyst Michael Pachter.

“The big benefit is that Microsoft has a vision that they are going to deliver games through a subscription, and they need more content to give subscribers. So, this is a big step toward having sufficient content,” he said.
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The Federal Trade Commission of the United States continues to oppose the acquisition despite having been unsuccessful in doing so in the past. The FTC stated on Friday that it will assess Microsoft’s contract with Ubisoft while concentrating on its petition for review.

Analysts, though, predict that not much will change.

“The impact of an FTC challenge will be limited to incremental concessions in the future,” D.A. Davidson analyst Gil Luria said.
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Also Read: Google’s Pichai Decried Bad ‘Optics’ of Search Engine Deal With Apple

The CMA believes that Microsoft’s streaming capitulation is a turning point and said that it was the sole rival agency in the world to achieve this result.

“The new deal will stop Microsoft from locking up competition in cloud gaming as this market takes off, preserving competitive prices and services for UK cloud gaming customers,” it said in a statement.
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Suhani Jain

Amazon and Microsoft Cloud Units Face UK Antitrust Investigation

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

In a significant move, Britain’s media regulator, Ofcom, has formally requested the Competition and Markets Authority (CMA) to investigate the dominant positions of U.S. tech giants Amazon and Microsoft in the UK cloud market.

The regulator expressed concerns over features that hindered UK businesses from using multiple cloud suppliers, citing a lack of flexibility and increased difficulty in switching providers. According to Ofcom, Amazon Web Services (AWS) and Microsoft jointly commanded a substantial 70-80% share of Britain’s public cloud infrastructure services market in 2022, leaving Google as their distant competitor with a mere 5-10% share. Ofcom contends that this concentration could have adverse effects on competition within the market.

“The CMA will now conduct an independent investigation to decide whether there is an adverse effect on competition, and if so, whether it should take action or recommend others to take action,” stated Ofcom.

Amazon responded with disagreement, stating that Ofcom’s findings were based on a “fundamental misconception of how the IT sector functions, and the services and discounts on offer.” The company warned that unwarranted intervention might lead to unintended harm to IT customers and competition but expressed willingness to work constructively with the CMA.

Similarly, Microsoft, holding a significant stake in the UK cloud industry, pledged its commitment to ensuring innovation and high competitiveness. A Microsoft spokesperson asserted, “We will engage constructively with the CMA.”

Ofcom’s move follows its earlier expression of concern in April, prompting speculation about a potential antitrust investigation. UK businesses, in their feedback to Ofcom, emphasized the difficulties in switching or combining cloud providers, leading to the decision to refer the matter to the CMA. Fergal Farragher, Director at Ofcom, stated, “So, we’re referring the market to the CMA for further scrutiny, to make sure business customers continue to benefit from cloud services.” The CMA welcomed the referral, acknowledging the critical role of effective competition in the £7.5 billion ($9.1 billion) cloud services market, upon which many businesses rely.

Also Read: Google’s New Virtual Assistant to Include Bard AI Tools

This move aligns with a broader global trend, as both the French antitrust authority and EU regulators have shown an increasing interest in scrutinizing practices within the cloud computing sector. Google’s Vice President, Amit Zavery, stressed the need for an open cloud market without vendor lock-in, reflecting the sentiments of UK government agencies, businesses, and consumers.

The CMA is expected to conclude its investigation by April 2025, marking a pivotal moment in shaping the landscape of the UK’s cloud services market.

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.

Microsoft’s Nadella and Oracle’s Ellison Discuss the Future of Cloud and AI

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

The most recent iteration of the cloud alliance between Microsoft and Oracle places a strong emphasis on efficiently integrating data and artificial intelligence. This is due to the fact that an artificial intelligence model’s effectiveness is directly correlated with the quantity, variety, and caliber of the training data.

The firms have been working together in this sector for four years. Oracle, the world’s largest database company, will now physically place its Exadata technology in Microsoft’s data centers, accelerating customer-facing applications.

Customers will therefore have direct accessibility to Oracle database services that are installed in Microsoft Azure data centres and operate on Oracle Cloud Infrastructure.

Instead of running an independent Oracle dashboard, users would be able to manage certain Oracle services from Microsoft’s Azure Cloud dashboard. The goal is to increase application performance while reducing expenses.

From Microsoft’s headquarters in Redmond, Washington, Satya Nadella, the company’s chief executive officer, and Oracle Co-Founder and CTO Larry Ellison spoke with The Wall Street Journal about their collaboration. As stated by Oracle, it was Ellison’s first trip to Redmond.

The Oracle-Azure relationship is positioned to fundamentally alter how companies use AI, with an emphasis on bringing data closer to artificial intelligence (AI) capabilities and opening up previously unimaginable possibilities.

Nadella emphasized the paramount importance of data accessibility in the age of AI. He stated, “In the age of AI, for us, we do need to bring data to where AI is. And that’s what Oracle-Azure really represents.”

Ellison pointed out, “We can now design new drugs in a tiny fraction of the time. We used to be able to do it in a wet lab. We can do it on computers now with AI models, and we’ve seen some very exciting progress already.”
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Despite the excitement around artificial intelligence, both leaders recognized that its implementation required caution. Ellison was aware of the worries about technological misuse, a typical worry with every ground-breaking breakthrough. The Oracle-Azure alliance, however, marks a big step towards using AI for the benefit of society and several businesses. This cooperation is positioned to usher in a period of exceptional technical developments that promise to enhance our lives and spur economic growth, with an emphasis on data accessibility, generative artificial intelligence, and ethical deployment.

Suhani Jain

Amazon, Alphabet, Microsoft, Meta Probed by Lawmakers on Use of AI ‘Ghost’ Staff

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

The chief executive officers of 9 companies, which include Amazon.com Inc., Meta Platforms Inc., Alphabet Inc., Microsoft Corp., as well as International Business Machines Corp., were addressed in a letter by a team of lawmakers led by Massachusetts Senator Ed Markey with Washington Representative Pramila Jayapal on Wednesday. In spite of the fundamental importance of this work, a lot of IT employees around the world carry out these demanding duties under constant scrutiny, with inadequate compensation and no benefits, the letter sent to the chief executives stated.

“Workers are expected to screen out dangerous chatbot answers, but they may have little time to assess an answer’s safety,” they added. “Data workers are often given scant training or supervision, which can result in the introduction of bias.”
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The legislators question the executives on a wide range of issues pertaining to their data employees, such as the workers’ capacity to request leave, contest suspensions, or seek out mental health services when exposed to upsetting material.

The recipients of the letter include the more recent companies focused on Artificial Intelligence such as OpenAI Inc., Scale AI, Inflection AI, Inc., and Anthropic in addition to the well-known tech giants.

US corporations depend heavily on subcontracted workers to develop artificial intelligence (AI) products, whether they are based domestically or abroad. These workers are employed through external staffing services and frequently lack the perks offered to direct employees of the company. Companies also depend on similar services for other taxing duties like product quality assurance as well as content monitoring.

When confronted with disturbing pictures, some employees describe experiencing trauma as a way to block them out. According to a January Time article, OpenAI pays Kenyan employees less than $2 per hour to prevent that kind of information from appearing on ChatGPT.

Also Read: Binance US CEO quits as embattled crypto platform slashes one-third of staff

Senators are scheduled to meet with executives from companies like Tesla Inc., Microsoft, Meta, and Alphabet at a closed-door AI summit on Wednesday afternoon organized by Senate Majority Leader Chuck Schumer, who was not one of the politicians who signed the letter.

“These tech moguls are under-paying workers, failing to provide them basic protections and benefits, and subjecting them to an extensive web of surveillance in order to prop up their business,” Markey said in an emailed statement. “When they come to the Capitol to tout their innovation and excellence, I’d like to hear them answer for these disgusting labour practices.”
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Suhani Jain

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