Tag Archives: googl

Google Seen Slashing Cloud Pricing Vs. Amazon, Microsoft

The next round of price cutting in public cloud computing services could come from Alphabet ’s ( GOOGL ) Google, just as Amazon.com and Microsoft show some restraint, says a Goldman Sachs research report. Amazon Web Services (AWS), part of  Amazon.com ( AMZN ) , is the biggest provider of infrastructure as a service (IaaS), where customers rent computer servers and data storage systems via the Internet. Microsoft ( MSFT ) and Alphabet’s Google are the next biggest. The new boss of Google’s cloud business, Diane Greene, will make her debut at that unit’s user conference March 23 to 24, notes the Goldman Sachs report. Greene, a Google board member since January 2012, founded virtualization leader VMware ( VMW ), which she led as CEO until she was forced out in 2008. In November, Google acquired Greene’s startup, Bebop, for $380 million. While AWS has been the biggest IaaS price-cutter of the last decade, Google Cloud Platform (GCP) has been aggressive since moving into the market. Google slashed prices in March 2014, October 2014 and May-June 2015, Goldman analyst Heather Bellini said in the report. “Another 20% to 30% across-the-board price cut from Google in 2016 would not be surprising,” wrote Bellini. “This could be announced as early as their GCP Next conference in San Francisco on March 23-24. Similar to behavior in 2015, we do not expect Amazon and Microsoft to follow suit.” Goldman Sachs says that the top three service providers are gaining share as Verizon Communications ( VZ ), Hewlett Packard Enterprise ( HPE ) and others exit the public IaaS market and focus on private clouds. Goldman Sachs estimates that AWS’ revenue will hit $12.5 billion in 2016, up from $7.88 billion last year. “If AWS surpasses $10 billion in 10 years, it would be the fastest-growing software business,” surpassing Microsoft, Oracle ( ORCL ), and SAP ( SAP ),” Bellini wrote.

Facebook Ready To Let Android Users Also Get A Close-Up

Pushing deeper into streaming video, Facebook ( FB ) is expanding its live-video feature to users of Android devices, having launched the feature for Apple ( AAPL ) iPhone users in December. Facebook initially began allowing live video on Apple devices in the U.S. only but has since expanded to 30 countries. In a blog post Friday, Facebook said that it will roll out Live to Alphabet ( GOOGL ) Android users next week in the U.S., with more countries coming soon. The live-video feature lets mobile users share experiences in real time. On average, Facebook said, people watch a live video more than three times longer than other video. Facebook is increasingly expanding its video-sharing prowess. When Facebook reported fourth-quarter earnings on Jan. 27, it said that people watch more than 100 million hours of video daily on Facebook. More than 500 million of its 1.6 billion users watch video daily. The addition of live video streaming for Apple and now Android users on mobile devices will boost views. Video is an integral element of Facebook’s revenue growth. Analysts see Facebook benefiting from such revenue drivers as video ads, a larger share of digital and traditional ads, and increasing monetization of its Instagram video- and photo-sharing site, which also has video ads. This month, Facebook announced that it had doubled the length of video ads on Instagram to 60 seconds. Facebook derives more than 96% of total revenue from advertising, with video ads commanding higher prices than other ads. Citing high expectations of revenue growth from video ads and Instagram ads, Rosenblatt Securities on Tuesday reiterated its buy rating on the social networking leader. The Live feature is an extension of a live broadcast channel that Facebook began offering in August for celebrities to interact with fans. That offering came months after Meerkat and Twitter ’s ( TWTR ) Periscope, two video apps, were launched for general use. Facebook wants to make sure that users don’t switch to Twitter for big events or Q&As. Besides Twitter, Facebook competes with Alphabet, Microsoft ( MSFT ) and Apple for online advertising. Facebook stock was down a fraction in early-afternoon trading in the stock market today , as was Alphabet. Apple stock up a fraction and Twitter up 1.5%.

Ruckus Bulls Expect Upside From Cable Wi-Fi, OpenG Initiative

Ruckus Wireless ( RKUS ) could get a boost from increased spending on public Wi-Fi networks by cable TV companies as well as its push into a new market — LTE wireless data services that use high-frequency 3.5 GHz spectrum, say analysts. Ruckus, a maker of Wi-Fi networking gear, competes with Cisco Systems ( CSCO ), Hewlett Packard Enterprise ( HPE ), Aerohive Networks ( HIVE ) and others. Ruckus stock was up a fraction in midday trading on the stock market today , near 9.75, but it’s down 9% this year after falling nearly 11% last year, amid a slowdown in education spending on wireless networks. Ruckus has a IBD Composite Rating of 70, where 99 is highest. Ruckus stock touched an all-time low of 7.25 on Feb. 10. On Friday, BTIG analyst Walt Piecyk initiated coverage on Ruckus with a buy rating. “We expect Ruckus to generate 16% revenue growth in 2016, an acceleration from last year’s 14% growth rate,” wrote Piecyk. “We expect 2017 revenue growth of 16% but note that if a cable operator were to initiate a new investment program, Ruckus would have the opportunity to accelerate the top line.” Ruckus sells Wi-Fi gear to the enterprise market — big corporate, government, education and health system customers. One concern among analysts is its exposure to China’s telecom market. In late 2017, Ruckus could get a lift from a new product cycle, says Jason Ader, an analyst at William Blair. Ruckus is targeting in-building wireless networks that use 3.5 GHz spectrum, using a technology called OpenG. Ruckus is working on OpenG with Qualcomm ( QCOM ), Nokia ( NOK ) and Alphabet ’s ( GOOGL ) Google. “Ruckus management is confident in driving adoption of OpenG over time and expects revenue impact in the second half of 2017,” wrote Ader in a research report. “We view the in-building cellular opportunity as an excellent strategic fit with Ruckus’ existing business and a material growth catalyst longer term, especially as the Wi-Fi market matures.”