LinkedIn gets lucky

lucky pantsSeveral readers have asked for my take on Microsoft’s purchase this week of LinkedIn for $26.2 billion — a figure some think is too high and others think is a steal. I think there is generally more here than meets the eye.

Microsoft definitely needed more presence in social media if it wants to be seen as a legit competitor to Google and Facebook. Yammer wasn’t big enough. LinkedIn fits Redmond’s business orientation and was big enough to show that Satya Nadella isn’t afraid to open up the BIG CHECKBOOK.

A simple financial analysis of the deal shows LinkedIn was way cheaper at $59 per registered member than buying Facebook for $329+ per member (if Microsoft […]

The Problem with Analytics

IBM-Bigdata-AnalyticsThere is a difference between knowledge and understanding. Knowledge typically comes down to knowing facts while understanding is the application of knowledge to the mastery of systems. You can know a lot while understanding very little. Just as an example, IBM’s Watson artificial intelligence system that defeated the TV Jeopardy champs a few years ago knew all there was to know about Jeopardy questions but didn’t really understand anything. Ask Watson to apply to removing your appendix its knowledge of hundreds of medical questions and you’d be disappointed and probably dead. That’s the problem with most analytics, which is why it can be a hard sell.

The answer to this problem, we’re told, […]

Apple and Didi is about foreign cash and the future of motoring

DidiAppApple this week invested $1 billion in Xiaoju Kuaizhi Inc., known as Didi — by far the dominant car-hailing service in China with 300 million customers. While Apple has long admitted being interested in car technology and has deals to put Apple technology into many car lines, this particular investment seems to have been a surprise to most everyone. Analysts and pundits are seeing the investment as a way for Apple to get automotive metadata or even to please the Chinese government. I think it’s more than that. I think it is a potential answer to Apple’s huge problem of foreign cash and a grab for leadership in what may well be […]

Ginni the Eagle: IBM’s Corporate “Transformation”

IBMI promised a follow-up to my post from last week about IBM’s massive layoffs and here it is. My goal is first to give a few more details of the layoff primarily gleaned from many copies of their separation documents sent to me by laid-off IBMers, but mainly I’m here to explain the literal impossibility of Big Blue’s self-described “transformation” that’s currently in process. My point is not that transformations can’t happen, but that IBM didn’t transform the parts it should and now it’s probably too late.

First let’s take a look at the separation docs. Whether you give a damn about IBM or not, if you work for […]

Why Apple doesn’t sell televisions

appledolbyAt least twice over the past decade Apple has been close to announcing its own television. Not the Apple TV set top box but actual big screen TVs with, well, big screens. But both times I’ve heard about this Apple backed away at the last minute. And the reason why they did was because even an Apple television would be just another television with an Apple logo. Steve Jobs realized that TVs had become a commodity and there didn’t seem to be an obvious way to make Apple’s television special. I’m not here to say Apple has finally found its TV design path as suggested in Walter Isaacson’s book and will be doing […]