The Not So Magic Quadrant 002

Jul 25, 2019

Leading global tech analysts Patrick Moorhead (Moor Insights & Strategy) and Daniel Newman (Futurum Research) are front and center on The Six Five analyzing the tech industry's biggest news each and every week and also conducting interviews with tech industry "insiders" on a regular basis. 

 

The Six Five represents six (6) handpicked topics that will be covered for five (5) minutes each.

 

Welcome to this week’s edition of “The 6-5.” I’m Patrick Moorhead with Moor Insights & Strategy, co-host, joined by Daniel Newman with Futurum Research. On this week’s show we will be talking:

 

• Gartner IaaS Magic Quadrant
  • https://twitter.com/PatrickMoorhead/status/1152353594320052224?s=19
  • AWS, Azure, GCP, IBM, Oracle
  • Should we be worried about stalled growth
  • Systems issues? 
  • IBM exceeded revenue, gross margin and profit expectations for Q2 and Wall Street are rewarding the company in after-hours. IBM's Q2 was a story of highs and lows. On the plus side, the company beat on revenue, gross profit and EPS and its cloud and cognitive business were up 3%. Only AWS and Azure have larger cloud revenue and cloud accounts for 25% of the company's revenues. 30% of its services backlog is cloud, a good sign.
  • On the downside, it's the fourth straight quarter without revenue growth and the systems and financing business was down significantly.  In GTS (Global Technology Services), IBM is de-emphasizing lower GM business to focus on higher profit engagements.
  • The Red Hat acquisition starts to become even more important to IBM's cloud and services growth in the future.

 

• IBM Earnings 
  • https://www.cnet.com/news/doj-says-antitrust-ruling-against-qualcomm-could-put-our-nations-security-at-risk/
  • DOJ, DOE, DOD (undersecretary of defense), Ericsson, LG, American Antitrust Institute, CCIA
  • Why the Government is intervening? 

 

• Qualcomm Amicus Briefs
  • https://venturebeat.com/2019/07/18/intel-and-sap-broaden-datacenter-tech-partnership/
  • Companies are aligning more closely to drive better hardware/software for improved user experiences and reduced downtime.

 

• SAP and Intel Partnership
  • https://www.forbes.com/sites/patrickmoorhead/2019/07/21/microsoft-wins-big-in-att-cloud-deal-valued-at-2b/
  • Strategic partnership between the two companies to help AT&T develop over the top services for 5G and Cloud.

 

• AT&T Microsoft deal

 

• Slack reset passwords 2015
  • https://techcrunch.com/2019/07/18/slack-password-breach/ More than 10% of passwords dating back to 2015 had to be rebooted due to a security breach.

 

Alright...let’s get started.

 

Disclaimer: This show is for information and entertainment purposes only. While we will discuss publicly traded companies on this show. The contents of this show should not be taken as investment advice.