As it approaches its first stock offering next month, Snap, maker of the popular mobile messaging app Snapchat, is positioning itself as a camera company.
Read my interview with E-Commerce times here.
Microsoft launches Teams
Microsoft earlier this week launched Teams, a new collaboration offering designed to fend off competitors to its Office 365 platform. The new chat-based workspace product brings together people, conversations and content, along with some familiar productivity tools, to facilitate collaboration on projects.
Please read here my thoughts in an interview with E-Commerce Times here.
Google Launches New Incubator
Google solved two major issues by setting up an in-house incubator. First, the company is full of high potentials with bright ideas. Over the years Google employees have left the company to start successful businesses on their own. They are part of a network called Xooglers (short for ex-Googlers). Some have even started their own venture fund like Aydin Senkun who runs the angel fund Felicis Ventures. The incubator gives Google employees an opportunity to work on their ideas and build a business without leaving the Google ecosystem. So, this investment vehicle can be viewed as the ultimate retention tool. Second, the whole idea of Alphabet was to run all businesses that are not core to Google’s mission as separate entities under an umbrella company. This step was designed to increase visibility of all the various business activities such as X, Google Capital, Google ventures. Following the thought process behind the formation of Alphabet, the incubator gives Google the opportunity to build a structured process around the creative energy within its organization. So, instead of implicitly funding ideas by tolerating employee driven side projects, there is a clear vetting process overseen by investment professionals.
Here is the link to the E-Commerce Times article.
Amazon’s Payment Business
Amazon is doubling down on its payment business. Started in 2013 it has reached about 23 million users outside its own web properties which is only a fraction of the 170 million active PayPal accounts. With the recent launch of the Global Partner Program, the idea is that other retailers can set up an e-commerce site using the Amazon log-in to process the transaction. The participating companies are able to offer a convenient shopping experience that doesn’t require their clients to reenter payment information. Obviously, Amazon is charging for this service. By ramping up this business, it will be able to benefit from sales transaction outside its core retail business.
Obviously, Amazon is going after PayPal. By providing convenience and perhaps aggressive terms on its payment service, the company would be well positioned to grow, but there is a catch. Retailers have to think long and hard before they reveal their client data to another retailer let alone the world largest retail e-commerce site. Via this service, Amazon learns what people buy, who they are and what they paid for a particular item. That’s is very valuable information to have in a hyper competitive industry. Retailers choosing PayPal won’t have to fear any conflict of interest now and in the foreseeable future.
You can read my comment with E-Commerce times here.
Dell NTT Deal
NTT Data on Monday announced in a regulatory filing that it has agreed to purchase Dell’s IT services business for just over US$3 billion.
Dell selling its IT services business to NTT is really a win-win for both companies. The Japanese company is looking for growth opportunities outside its domestic market. Dell’s IT services unit is a well run operations. Given the high quality customer base the risk for NTT is manageable. It fits well with NTT’s core competence. This new deal is in line with the purchase of Dimension Data Holding PC and Keane Inc a few years back.
On the other hand, Dell is getting ready to complete its acquisition of EMC as it cleared regulatory hurdles in the US. Pre- and post merger, Dell has to deleverage the company in order to handle the 59 billion dollar acquisition of EMC. Divesting from its IT business is a first step in a series of moves to improve the balance sheet.
Click here to find the entire article.
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