Wednesday August 21, 2019
 

As GE and Amazon move on, Google expands presence in Boston and NYC

NYC and Boston were handed huge setbacks this week when Amazon and GE decided to bail on their commitments to build headquarters in the respective cities on the same day. But it’s worth pointing out that while these large tech organizations were pulling out, Google was expanding in both locations.

Yesterday, upon hearing about Amazon’s decision to scrap its HQ2 plans in Long Island City, New York City Mayor de Blasio had this to say: “Instead of working with the community, Amazon threw away that opportunity. We have the best talent in the world and every day we are growing a stronger and fairer economy for everyone. If Amazon can’t recognize what that’s worth, its competitors will.” One of them already has. Google had already announced a billion-dollar expansion in Hudson Square at the end of last year.

Google is spending $1 billion to build a massive new campus in New York

In fact, the company is pouring billions into NYC real estate, with plans to double its 7,000-person workforce over the next 10 years. As TechCrunch’s Jon Russell reported, “Our investment in New York is a huge part of our commitment to grow and invest in U.S. facilities, offices and jobs. In fact, we’re growing faster outside the Bay Area than within it, and this year opened new offices and data centers in locations like Detroit, Boulder, Los Angeles, Tennessee and Alabama, wrote Google CFO Ruth Porat.”

Just this week, as GE was making its announcement, Google was announcing a major expansion in Cambridge, the city across the river from Boston that is home to Harvard and MIT. Kendall Square is also home to offices from Facebook, Microsoft, IBM, Akamai, DigitalOcean and a plethora of startups.

Google will be moving into a brand new building that currently is home to the MIT Coop bookstore. It plans to grab 365,000 square feet of the new building when it’s completed, and, as in NYC, will be adding hundreds of new jobs to the 1,500 already in place. Brian Cusack, Google Cambridge Site lead points out the company began operations in Cambridge back in 2003 and has been working on Search, Android, Cloud, YouTube, Google Play, Research, Ads and more.

“This new space will provide room for future growth and further cements our commitment to the Cambridge community. We’re proud to call this city home and will continue to support its vibrant nonprofit and growing business community,” he said in a statement.

As we learned this week, big company commitments can vanish just as quickly as they are announced, but for now at least, it appears that Google is serious about its commitment to New York and Boston and will be expanding office space and employment to the tune of thousands of jobs over the next decade.

Boston and NY share high-tech losses as GE and Amazon bail on same day

Post to Twitter Tweet This Post

As GE and Amazon move on, Google expands presence in Boston and NYC

NYC and Boston were handed huge setbacks this week when Amazon and GE decided to bail on their commitments to build headquarters in the respective cities on the same day. But it’s worth pointing out that while these large tech organizations were pulling out, Google was expanding in both locations.

Yesterday, upon hearing about Amazon’s decision to scrap its HQ2 plans in Long Island City, New York City Mayor de Blasio had this to say: “Instead of working with the community, Amazon threw away that opportunity. We have the best talent in the world and every day we are growing a stronger and fairer economy for everyone. If Amazon can’t recognize what that’s worth, its competitors will.” One of them already has. Google had already announced a billion-dollar expansion in Hudson Square at the end of last year.

Google is spending $1 billion to build a massive new campus in New York

In fact, the company is pouring billions into NYC real estate, with plans to double its 7,000-person workforce over the next 10 years. As TechCrunch’s Jon Russell reported, “Our investment in New York is a huge part of our commitment to grow and invest in U.S. facilities, offices and jobs. In fact, we’re growing faster outside the Bay Area than within it, and this year opened new offices and data centers in locations like Detroit, Boulder, Los Angeles, Tennessee and Alabama, wrote Google CFO Ruth Porat.”

Just this week, as GE was making its announcement, Google was announcing a major expansion in Cambridge, the city across the river from Boston that is home to Harvard and MIT. Kendall Square is also home to offices from Facebook, Microsoft, IBM, Akamai, DigitalOcean and a plethora of startups.

Google will be moving into a brand new building that currently is home to the MIT Coop bookstore. It plans to grab 365,000 square feet of the new building when it’s completed, and, as in NYC, will be adding hundreds of new jobs to the 1,500 already in place. Brian Cusack, Google Cambridge Site lead points out the company began operations in Cambridge back in 2003 and has been working on Search, Android, Cloud, YouTube, Google Play, Research, Ads and more.

“This new space will provide room for future growth and further cements our commitment to the Cambridge community. We’re proud to call this city home and will continue to support its vibrant nonprofit and growing business community,” he said in a statement.

As we learned this week, big company commitments can vanish just as quickly as they are announced, but for now at least, it appears that Google is serious about its commitment to New York and Boston and will be expanding office space and employment to the tune of thousands of jobs over the next decade.

Boston and NY share high-tech losses as GE and Amazon bail on same day

Post to Twitter Tweet This Post

As GE and Amazon move on, Google expands presence in Boston and NYC

NYC and Boston were handed huge setbacks this week when Amazon and GE decided to bail on their commitments to build headquarters in the respective cities on the same day. But it’s worth pointing out that while these large tech organizations were pulling out, Google was expanding in both locations.

Yesterday, upon hearing about Amazon’s decision to scrap its HQ2 plans in Long Island City, New York City Mayor de Blasio had this to say: “Instead of working with the community, Amazon threw away that opportunity. We have the best talent in the world and every day we are growing a stronger and fairer economy for everyone. If Amazon can’t recognize what that’s worth, its competitors will.” One of them already has. Google had already announced a billion-dollar expansion in Hudson Square at the end of last year.

Google is spending $1 billion to build a massive new campus in New York

In fact, the company is pouring billions into NYC real estate, with plans to double its 7,000-person workforce over the next 10 years. As TechCrunch’s Jon Russell reported, “Our investment in New York is a huge part of our commitment to grow and invest in U.S. facilities, offices and jobs. In fact, we’re growing faster outside the Bay Area than within it, and this year opened new offices and data centers in locations like Detroit, Boulder, Los Angeles, Tennessee and Alabama, wrote Google CFO Ruth Porat.”

Just this week, as GE was making its announcement, Google was announcing a major expansion in Cambridge, the city across the river from Boston that is home to Harvard and MIT. Kendall Square is also home to offices from Facebook, Microsoft, IBM, Akamai, DigitalOcean and a plethora of startups.

Google will be moving into a brand new building that currently is home to the MIT Coop bookstore. It plans to grab 365,000 square feet of the new building when it’s completed, and, as in NYC, will be adding hundreds of new jobs to the 1,500 already in place. Brian Cusack, Google Cambridge Site lead points out the company began operations in Cambridge back in 2003 and has been working on Search, Android, Cloud, YouTube, Google Play, Research, Ads and more.

“This new space will provide room for future growth and further cements our commitment to the Cambridge community. We’re proud to call this city home and will continue to support its vibrant nonprofit and growing business community,” he said in a statement.

As we learned this week, big company commitments can vanish just as quickly as they are announced, but for now at least, it appears that Google is serious about its commitment to New York and Boston and will be expanding office space and employment to the tune of thousands of jobs over the next decade.

Boston and NY share high-tech losses as GE and Amazon bail on same day

Post to Twitter Tweet This Post

Zendesk just hired three former Microsoft, Salesforce and Adobe execs

Today, Zendesk announced it has hired three new executives — Elisabeth Zornes, former general manager of global support for Microsoft Office, as Zendesk’s first chief customer officer; former Adobe executive Colleen Berube as chief information officer and former Salesforce executive Shawna Wolverton as senior vice president, product.

The company emphasized that the hirings were about expanding the executive suite and bringing in top people to help the company grow and move into larger enterprise organizations.

From left to right: Shawna Wolverton, Colleen Berube and Elisabeth Zornes

Zornes comes to Zendesk with 20 years of experience including time Microsoft working in a variety of roles around Microsoft Office. She says that what attracted her to Zendesk was its focus on the customer.

“When I look at businesses today, no matter what size, what type or what geography, they can agree on one thing: customer experience is the rocket fuel to drive success. Zendesk has positioned itself as a technology company that empowers companies of all kinds to drive a new level of success by focusing on their customer experience, and helping them to be at the forefront of that was a very intriguing opportunity for me,” Zornes told TechCrunch.

New CIO Berube, who comes with two decades of experience, also sees her new job as a chance to have an impact on customer experience and help companies that are trying to transform into digital organizations. “Customer experience is the linchpin for all organizations to succeed in the digital age. My background is broad, having shepherded many different types of companies through digital transformations, and developing and running modern IT organizations,” she said.

Her boss, CEO and co-founder Mikkel Svane, sees someone who can help continue to grow the company and develop the product. “We looked specifically for a CIO with a modern mindset who understands the challenges of large organizations trying to keep up with customer expectations today,” Svane told TechCrunch.

As for senior VP of product Wolverton, she comes with 15 years of experience, including a stint as head of product at Salesforce. She said that coming to Zendesk was about having an impact on a modern SaaS product. “The opportunity to build a modern, public, cloud-native CRM platform with Sunshine was a large part of my decision to join,” she said.

The three leaders have already joined the organization — Wolverton and Berube joined last month and Zornes started just this week.

Post to Twitter Tweet This Post

Google says it’ll invest $13B in US data centers and offices this year

Google today announced that it will invest $13 billion in data centers and offices across the U.S. in 2019. That’s up from $9 billion in investments last year. Many of these investments will go to states like Nebraska, Nevada, Ohio, Texas, Oklahoma, South Carolina and Virginia, where Google plans new or expanded data centers. Though like most years, it’ll also continue to expand many of its existing offices in Seattle, Chicago and New York, as well as in its home state of California.

Given Google’s push for more cloud customers, it’s also interesting to see that the company continues to expand its data center presence across the country. Google will soon open its first data centers in Nevada, Nebraska, Ohio and Texas, for example, and it will expand its Oklahoma, South Carolina and Virginia data centers. Google clearly isn’t slowing down in its race to compete with AWS and Azure.

“These new investments will give us the capacity to hire tens of thousands of employees, and enable the creation of more than 10,000 new construction jobs in Nebraska, Nevada, Ohio, Texas, Oklahoma, South Carolina and Virginia,” Google CEO Sundar Pichai writes today. “With this new investment, Google will now have a home in 24 total states, including data centers in 13 communities. 2019 marks the second year in a row we’ll be growing faster outside of the Bay Area than in it.”

Given the current backlash against many tech companies and automation in general, it’s probably no surprise that Google wants to emphasize the number of jobs it is creating (and especially jobs in Middle America). The construction jobs are obviously temporary, though, and data centers don’t need a lot of employees to operate once they are up and running. Still, Google promises that this will give it the “capacity to hire tens of thousands of employees.”

Google and IBM still trying desperately to move cloud market-share needle

Post to Twitter Tweet This Post

Donde Search picks up $6 million to help fashion retailers with visual search

Donde Search has just closed a $6 million Series A investment led by Matrix Partners, with participation from previous investors such as senior leaders from AliExpress, Google and Waze.

Donde first launched in 2014 as a consumer-facing app that helped users search and discover apparel items based on visual characteristics rather than text-based searches. In early 2018, the company pivoted to the enterprise space, helping retailers power suggestions and related items on their websites.

Here’s how it works:

Retailers partnered with Donde hand over their product catalog and run it through the Donde algorithm, which identifies all the visual features associated with each product. Retailers can then add a widget to their site to let users search based on those features (like sleeve length or type, color or material).

As users interact with the products, the website adapts to that behavior to offer personalized product recommendations and related items.

Moreover, Donde offers an analytics dashboard that not only provides insights on the customer’s own website, but a look into trends being featured on competing e-commerce websites to understand the industry in general.

Donde was founded by Liat Zakay, who previously served as a software engineer and R&D team manager in the Israeli intelligence unit 8200. Using her technical expertise, she built Donde to solve her own problem of not having the time or energy to go through the tedious process of online shopping.

Zakay told TechCrunch that Donde is focused on apparel for now, but that the technology can be applied to almost any vertical.

“One of the interesting pieces about Donde is that it’s language agnostic,” said Zakay. “You don’t need to know what it’s called and it doesn’t matter what language you speak, you can still find what you want based on visual features. Which makes us extremely relevant to global retailers.”

The new funding, which will be used to expand the product and the team, came shortly after the announcement of Donde’s partnership with Forever 21. The fast-fashion retailer tested out the Donde platform on its mobile app and, after a month, saw a 20 percent increase in average purchase value and higher conversions. Forever 21 has now expanded the program, putting Donde on the web, as well.

Donde said it is working on pilot programs with several other retailers across the U.S. and Europe.

Fast fashion, in particular, represents a big opportunity for Donde. Because product turnover is so fast, retailers rarely have reliable data around a certain SKU, with the website being run on outdated data from last “season.”

This latest round brings Donde’s total funding to $9.5 million, with backing from UpWest, Afterdox and Golden Seeds.

Post to Twitter Tweet This Post

Google and IBM still trying desperately to move cloud market share needle

When it comes to the cloud market, there are few known knowns. For instance, we know that AWS is the market leader with around 32 percent of market share. We know Microsoft is far back in second place with around 14 percent, the only other company in double digits. We also know that IBM and Google are wallowing in third or fourth place, depending on whose numbers you look at, stuck in single digits. The market keeps expanding, but these two major companies never seem to get a much bigger piece of the pie.

Neither company is satisfied with that, of course. Google so much so that it moved on from Diane Greene at the end of last year, bringing in Oracle veteran Thomas Kurian to lead the division out of the doldrums. Meanwhile, IBM made an even bigger splash, plucking Red Hat from the market for $34 billion in October.

This week, the two companies made some more noise, letting the cloud market know that they are not ceding the market to anyone. For IBM, which is holding its big IBM Think conference this week in San Francisco, it involved opening up Watson to competitor clouds. For a company like IBM, this was a huge move, akin to when Microsoft started building apps for iOS. It was an acknowledgement that working across platforms matters, and that if you want to gain market share, you had better start thinking outside the box.

While becoming cross-platform compatible isn’t exactly a radical notion in general, it most certainly is for a company like IBM, which if it had its druthers and a bit more market share, would probably have been content to maintain the status quo. But if the majority of your customers are pursuing a multi-cloud strategy, it might be a good idea for you to jump on the bandwagon — and that’s precisely what IBM has done by opening up access to Watson across clouds in this fashion.

Clearly buying Red Hat was about a hybrid cloud play, and if IBM is serious about that approach, and for $34 billion, it had better be — it would have to walk the walk, not just talk the talk. As IBM Watson CTO and chief architect Ruchir Puri told my colleague Frederic Lardinois about the move, “It’s in these hybrid environments, they’ve got multiple cloud implementations, they have data in their private cloud as well. They have been struggling because the providers of AI have been trying to lock them into a particular implementation that is not suitable to this hybrid cloud environment.” This plays right into the Red Hat strategy, and I’m betting you’ll see more of this approach in other parts of the product line from IBM this year. (Google also acknowledged this when it announced a hybrid strategy of its own last year.)

IBM is betting the farm on Red Hat, and it better not mess up

Meanwhile, Thomas Kurian had his coming-out party at the Goldman Sachs Technology and Internet Conference in San Francisco earlier today. Bloomberg reports that he announced a plan to increase the number of salespeople and train them to understand specific verticals, ripping a page straight from the playbook of his former employer, Oracle.

He suggested that his company would be more aggressive in pursuing traditional enterprise customers, although I’m sure his predecessor, Diane Greene, wasn’t exactly sitting around counting on inbound marketing interest to grow sales. In fact, rumor had it that she wanted to pursue government contracts much more aggressively than the company was willing to do. Now it’s up to Kurian to grow sales. Of course, given that Google doesn’t report cloud revenue it’s hard to know what growth would look like, but perhaps if it has more success it will be more forthcoming.

Google looks to former Oracle exec Thomas Kurian to move cloud business along

As Bloomberg’s Shira Ovide tweeted today, it’s one thing to turn to the tried and true enterprise playbook, but that doesn’t mean that executing on that approach is going to be simple, or that Google will be successful in the end.

These two companies obviously desperately want to alter their cloud fortunes, which have been fairly dismal to this point. The moves announced today are clearly part of a broader strategy to move the market share needle, but whether they can or the market positions have long ago hardened remains to be seen.

The cloud continues to grow in leaps and bounds, but it’s still AWS’s world

Post to Twitter Tweet This Post

InVision acquires design file versioning startup Trunk

InVision, the design company valued at $1.9 billion, has today announced the acquisition of Australia-based Trunk.

Trunk is focused wholly on file versioning for designers. In the world of engineering, GitHub has provided a way for developers to keep versions organized — developers can track changes, create a separate branch to experiment, and collaborate more easily with other developers by merging branches. But the same courtesy hasn’t properly been extended to designers, who usually spend plenty of time scrolling through long email chains searching for the latest version of the attachment.

The deal, the terms of which were not disclosed, came about after Trunk applied for funding from InVision’s Design Forward Fund. After taking a look at the Trunk business and getting to know the team better, InVision decided to take it a step further with a proper acquisition offer.

“We’re truly inverting the workflow,” said InVision CEO and founder Clark Valberg . “It’s gone from engineering first to design first because, in the process of building, design is the best place to have conversations across the company. Everyone can understand it and strategize. Engineers have had version control since the very early days.”

The Trunk team will be focusing their energy on Studio, InVision’s design tool, which launched about a year ago.

The launch of Studio was the first time that InVision truly showed its hand, revealing efforts to go well beyond a simple collaboration tool and become the Salesforce of the design world.

In order to do so, InVision is building bridges between itself and other design focused startups, whether its through integrations, investment, or straight-up acquisition.

“As a growing company with some 800 employees, we’re always looking for people who are passionate about each individual slice of this design pie as possible,” said Valberg. “After using Trunk’s technology, we realized that they really really really care about this slice around design file versioning.”

The InVision collaboration suite currently boasts a place at 98 percent of the Fortune 100 companies, with more than 5 million users. This means the company is shifting its focus squarely to Studio. Design collaboration software was a relatively novel idea back when InVision launched, but design software wasn’t. With Studio, InVision is taking on incumbents like Adobe and other newcomers such as Sketch.

Of course, the feature set of Studio itself is important in beating out other design tools, but InVision believes that the real deal closer is integration with the deeper back-end of InVision’s suite of tools, such as InVision collaboration and now, design file versioning.

Post to Twitter Tweet This Post

Jobvite raises $200M+ and acquires three recruitment startups to expand its platform play

Jobvite, the company that was once an early mover in leveraging social networks to help source job opportunities and find interesting candidates for openings, is today announcing two big moves to double down on its ambition to build a bigger platform for recruitment and applicant tracking.

The company has picked up an investment of over $200 million, and it will be using the money to acquire three smaller companies focusing on different aspects of the recruitment process: Talemetry (which specializes in recruitment marketing); RolePoint (for employee referrals and in-company moves); and Canvas (a text-based conversational bot to get the screening process started).

Jobvite is not disclosing its valuation with the funding, which is coming from private equity firm K1, but for a little guidance, in an interview, Dan Finnigan, Jobvite’s CEO, said it was a majority stake but nowhere near a full acquisition. (PitchBook’s last valuation of the company, of around $150 million, is very old, dating from September 2014; and it has never been confirmed by the company.)

The combined company will have 2,000+ customers that include Schneider Electric, Lenovo, Santander, PayPal, Genuine Parts, and Panasonic.

Finnigan says that Jobvite’s growth, and investor interest in backing that, is happening in tandem with two changes, one technological and another the evolution in how organizations handle human resources.

Several years ago, many companies — hoping to cut costs — merged together their personnel and recruitment operations, “and recruiting became an afterthought,” he said. That led to companies tacking on, as a kind of minimum viable solution, applicant tracking software but little or nothing else.

But more recently, the war for talent has escalated — not just because unemployment is low but because there are now multiple different opportunities and shortages of suitable people for specific, often emerging skills. In turn, businesses have started to realise “that recruiting is the backbone of every company, and that applicant tracking is just not enough,” he said.

At the same time, there have been evolutions in the technology. While a lot of recruitment software (and the recruitment process) has traditionally been quite fragmented, a move to cloud solutions has provided an avenue for consolidating the process and using one platform to manage it. (Google’s launch of Hire, which lets users manage job applicants using G Suite apps; LinkedIn’s recruitment platform; Zoho and SmartRecruiter are all prime examples of how cloud platforms are being used to build more complete sourcing and tracking services.)

Coupled with this is a rising use of technology like machine learning to remove some of the more mechanical aspects of a recruiter’s job to speed up processes.

Jobvite’s three acquisitions all play into both of these trends. Canvas, for example, uses a bot to source initial information about a candidate to start the screening process before human recruiters step in to take over.

Talemetry, meanwhile, taps into marketing tech to help identify where the most ideal candidates might be in order to better target job opportunities at them, in the form of ads or other kind of content.

Lastly, RolePoint will add a new feature to tap into referrals from existing employees, and to help manage in-company moves.

Finnigan likens the cloud-based platform approach that we’re seeing in the market to the impact Salesforce has had on the expanding concept of CRM. “We know that marketing and sales software have continued to evolve with new features like content marketing, and the same has happened in recruitment,” he said.

“We are excited to be investing in such an innovative set of technologies,” says Ron Cano, managing partner at K1 Investment Management, in a statement. “The talent acquisition industry is critical to our economy and ripe for disruption with outdated software still prevalent. K1’s investment will create the only true end-to-end talent acquisition platform and will provide our customers with accelerated growth in innovation of product features and services.”

Post to Twitter Tweet This Post

BetterCloud can now manage any SaaS application

BetterCloud began life as a way to provide an operations layer for G Suite. More recently, after a platform overhaul, it began layering on a handful of other SaaS applications. Today, the company announced, it is now possible to add any SaaS application to its operations dashboard and monitor usage across applications via an API.

As founder and CEO David Politis explains, a tool like Okta provides a way to authenticate your SaaS app, but once an employee starts using it, BetterCloud gives you visibility into how it’s being used.

“The first order problem was identity, the access, the connections. What we’re doing is we’re solving the second order problem, which is the interactions,” Politis explained. In his view, companies lack the ability to monitor and understand the interactions going on across SaaS applications, as people interact and share information, inside and outside the organization. BetterCloud has been designed to give IT control and security over what is occurring in their environment, he explained.

He says they can provide as much or as little control as a company needs, and they can set controls by application or across a number of applications without actually changing the user’s experience. They do this through a scripting library. BetterCloud comes with a number of scripts and provides log access to give visibility into the scripting activity.

BetterCloud completes pivot from G Suite to general SaaS management

If a customer is looking to use this data more effectively, the solution includes a Graph API for ingesting data and seeing the connections across the data that BetterCloud is collecting. Customers can also set event triggers or actions based on the data being collected as certain conditions are met.

All of this is possible because the company overhauled the platform last year to allow BetterCloud to move beyond G Suite and plug other SaaS applications into it. Today’s announcement is the ultimate manifestation of that capability. Instead of BetterCloud building the connectors, it’s providing an API to let its customers do it.

The company was founded in 2011 and has raised more than $106 million, according to Crunchbase.

Post to Twitter Tweet This Post