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  1. #1
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    [EN] FB moving WhatsApp from IBM’s SoftLayer to Facebook’s own datacenters

    The WhatsApp messaging app relies on more than 700 high-end IBM SoftLayer servers.

    WhatsApp is one of IBM's high-profile customers for its cloud service, which lags behind market leader Amazon Web Services, as well as Microsoft Azure.

    Jordan Novet
    June 07, 2017

    Facebook's WhatsApp messaging service, which is used by 1.2 billion people across the globe, is planning to move off of IBM's cloud and into Facebook's own data centers, according to a person familiar with the matter.

    The WhatsApp move, which could begin later this year, would result in IBM losing a high profile customer for its public cloud. A source claims that WhatsApp has been one of IBM's top five public cloud customers in terms of revenue, and was at one point spending $2 million a month with IBM. (IBM says WhatsApp is not currently one of its top five public cloud customers.)

    IBM's public cloud business lags behind Amazon Web Services (AWS), which is on top with 33 percent of the market in April, as well as Microsoft's Azure cloud, according to Synergy Research.

    Facebook acquired WhatsApp for $19 billion in 2014 and has left the app running on the servers it has always used. Other companies that Facebook has acquired over the years initially used similar IBM SoftLayer servers, and Facebook was quick to bring them in-house, another source said. But with WhatsApp, Facebook has taken a much longer time.

    Part of the reason was prioritization. When Facebook bought WhatsApp, it was already in the midst of a yearlong migration of its Instagram photo-sharing app, which it acquired in 2012, from AWS to its own data centers.

    Also, Facebook separated its own Messenger messaging and calling app out from the core Facebook app months after the WhatsApp acquisition, and the social network's CEO, Mark Zuckerberg, didn't want WhatsApp to "get Facebooked" — in other words, to get integrated with its own apps too soon, a source said. Since then both Messenger and WhatsApp have gained hundreds of millions of users.

    At IBM, WhatsApp is considered a poster child for its cloud, two sources said — just as AWS has the likes of Airbnb and Netflix to boast about, while Alphabet's Google points to Snap and Spotify. (Snap, which operates the Snapchat social media app, has committed to paying Google $2 billion and Amazon $1 billion for hosting over five years, the company disclosed in February.)

    IBM hasn't broadly advertised its business with WhatsApp, although the company has detailed WhatsApp's usage in an off-the-record case study, a source said. It shows that WhatsApp runs atop more than 700 high-end servers split between data centers in San Jose, California, and Washington, D.C. At one point Facebook was spending nearly $2 million per month on the IBM cloud, a second source said.

    "WhatsApp has been a great client of IBM Cloud as they used our global footprint and capabilities to scale their business," IBM said in a statement. "We are proud of the role of IBM Cloud in their success. It is completely natural for Facebook to seek synergies across their business."

    Facebook did not immediately respond to a request for comment.

    People sent 63 billion messages on WhatsApp on New Year's Eve, Facebook said. That usage requires hefty computing resources. Presumably, the WhatsApp app will operate more efficiently once it's using Facebook servers, which could help Facebook save money. It's unlikely — although not impossible — that WhatsApp's users will notice any changes during the migration.

    A common move as companies grow

    Relying on a third-party cloud provider is common for young companies, which have to choose their priorities. But cloud costs can add up as companies grow. Dropbox and Zynga are among the companies that have reduced their dependence on AWS.

    When WhatsApp started in 2009, its engineers chose to run the underlying code on hosted servers from SoftLayer, which was then an independent company.

    Typically in the public cloud, software that would normally run on a single server is chopped up into slices that are known as virtual machines, and can also be further divided into containers, all of which lets them run more efficiently with less hardware.

    But WhatsApp has long circumvented this type of cloud resource, opting instead to use so-called bare-metal servers, which can deliver better performance. The SoftLayer public cloud was best known as a provider of these bare-metal servers when IBM acquired SoftLayer for $2 billion in 2013, and its bare-metal offerings remain available alongside virtual machines under IBM's Bluemix portfolio of cloud services.

    While Facebook has housed its own servers and storage in co-located facilities from the very early days of the company, it started building its own data centers in 2010, following in the steps of Alphabet's Google. Facebook has also designed a lot of its own data center hardware to improve efficiency, and has released many of the designs under the Open Compute Project, allowing low-cost manufacturers to build and sell the hardware to both Facebook and other companies. The company has saved more than $2 billion in data center costs by building in accord with the designs that it has shared in the Open Compute Project, an executive said in 2015.

    Last week Laurent Potdevin, CEO of athletic goods retailer Lululemon, faulted IBM for an outage of its website. But IBM did score a victory recently, signing Lloyds Bank to a 10-year deal, according to The Register.

    Disclosure: CNBC parent NBCUniversal is an investor in Snap.

    http://www.cnbc.com/2017/06/07/faceb...lic-cloud.html

  2. #2
    WHT-BR Top Member
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    Se a matéria não é o ataque de um ignorante à IBM, o que mais poderia ser? Bidu.

  3. #3
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    Neither FB stock nor IBM stock will be affected by the transfer of WhatsApp

    Greg Gambone
    Jun 7, 2017

    According to a CNBC article this afternoon, social media juggernaut Facebook Inc is making arrangements to move the WhatsApp messaging service off of cloud servers hosted by International Business Machines Corp. and onto its own bank of data centers instead.

    However, the effects of this decision will likely be minimal for both companies, and negligible for FB stock and IBM stock as well, even though those effects will be in direct opposition to one another.

    Earlier today, some other news outlets reported that WhatsApp is one of IBM’s five largest cloud service customers and described the messaging service as the “poster child” for the IBM cloud.

    However, an IBM representative told me this afternoon that WhatsApp is not actually one of the company’s top five clients. She said:

    Contrary to what some of the stories are saying, WhatsApp is not a “top 5” cloud client at IBM – not even close. We have many multi-million and even some billion dollar cloud clients, including US Army, Wal-mart, BMW, American Airlines, Lufthansa, Emirates, Workday, Chubb, AT&T, Wanda, Etihad, Maersk and many more.

    So, losing the WhatsApp account could have a negative impact on IBM’s bottom line, but considering that list of other cloud clients it’s likely to be almost insignificant, at least from a financial perspective.

    Facebook, on the other hand, stands to gain a bit from this decision. Apparently, “Facebook was spending nearly $2 million per month on the IBM cloud,” according to an unnamed source for CNBC.

    That means once the transition to FB’s own cloud servers is complete, the company could realize as much as $24 million per year in savings (not considering, of course, the potential costs associated with maintaining the WhatsApp data on Facebook-owned servers).

    http://investorplace.com/2017/06/fac...cloud-servers/

    A pergunta óbvia, com resposta idem: como uma despesa mensal de US$ 2 milhões colocaria um cliente no "Top 5" de faturamento da IBM? Ainda assim, o reporter e seu editor não estranharam uma startup incubada pelo gigante dos fracassos -- e mergulhada em prejuizos bilionários -- se comprometer a torrar minimo de US$ 50 milhões por mês durante 5 anos, US$ 2 bilhões com o seu protetor viciado em apostas mal sucedidas e US$ 1 bilhão com a AWS.
    Última edição por 5ms; 08-06-2017 às 18:58.

  4. #4
    WHT-BR Top Member
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    IBM Leads the Silicon Race

    Greg Gambone
    Jun 7, 2017

    International Business Machines Corp. announced Monday that its research department has successfully developed the world’s first ever 5-nanometer chip. What does that mean, though? TechRadar.com describes it like this: “In case you’re wondering how small that is in real terms, a nanometer is one billionth of a meter. A single blood cell is 7,000 nanometres wide.”

    So, for the non-geeks, we’re talking about the tiniest microscopic chip ever — “a 5-nanometer device is just a few atoms thick.” What’s more, this development has made it possible for IBM to jam more than 30 billion transistors onto a single piece of silicon the size of your fingernail. If you’re unfamiliar with the inner workings of electronic circuitry, transistors are essentially on-of switches.

    The announcement was made at the 2017 Symposia on VLSI Technology and Circuits conference in Kyoto, where IBM presented its groundbreaking wafer and explained that it can deliver performance enhancements of more than 40% alongside a 75% reduction in power usage. IBM said:

    “Let that sink in while reading this article on a mobile device with 10 percent power left: 5nm chips would give you hours, not minutes, before needing to recharge. A future 5nm-chip-powered mobile device will last days longer than what’s in your hand right now.”

    Developers went on to explain in excruciating detail the methodology used to create IBM’s 5nm chips, and how significantly it differs from the current 10nm processes. If you really want to know, head over to IBM’s announcement post on the company’s THINK Blog. Unfortunately, it’s a bit too comprehensive for me and my eyes started to glaze over as I read about nodes and FinFET transistors and silicon nanosheets.

    What I was able to take away from IBM’s announcement post is that its 5nm chips are expected to be available within the next three-to-five years.

    What’s the Big Deal With a 5nm Chip?

    The development of the 5nm chip is monumental for the future of technology, as it opens the door for even more advanced applications that would not have been possible otherwise using today’s leading 10nm silicon. Essentially, the processes used to develop those 10nm chips has reached its maximum capacity.

    According to Forbes, Mukesh Khare, the VP of semiconductor technology research at IBM explained that, “Geometrically, FinFETs cannot scale anymore.” So, basically, they’re already as small as they can get. Even if they were able to further shrink the current chips to 5nm, “the denser transistors on that architecture doesn’t boost performance because the closer fins don’t provide more current flow.”

    With a legitimate working 5nm chip, IBM has just positioned itself at the front of the pack. Competitors such as Samsung Electronic and Intel Corporation currently produce only 10nm chips holding approximately 10-15 million transistors. The new IBM chip is half the size and contains more than twice as many transistors.

    For specific segments of the technology industry such as artificial intelligence, virtual reality, machine deep learning and autonomous vehicles, the ability to incorporate chips that consume 75% less power while performing 40% better will be extremely advantageous and serve to further increase the speed of developments in those fields.

    Simply put, these new IBM chips should open the door to countless advancements in an array of major tech fields.

    http://investorplace.com/2017/06/int...race-5nm-chip/

  5. #5
    WHT-BR Top Member
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    Dec 2010
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    Lloyds Bank inks £1.3 billion IT outsourcing deal with IBM

    10 June 2017

    The project, dubbed Aurora, was due to be announced in January, but negotiations with IBM have taken longer than anticipated. It will see 500 permanent staff roles and 1000 contractors transferred to IBM, with the impact being felt mostly at the bank's date centres in Copley, West Yorkshire and Edinburgh.

    The agreement will see 2000 of the bank's 3200 applications running across Windows, Unix, Linux and IBM I-Series platform outsourced to Big Blue. The bank is anticipating £760 million in cost savings from the agreement.


    https://www.finextra.com/newsarticle...-deal-with-ibm





    Much Ado About Nothing

    Timothy Green
    Jun 8, 2017

    ...

    The key point: Facebook would have moved WhatsApp in-house regardless of what cloud computing provider it was running on. In the same way that the Instagram migration wasn't a reflection on Amazon's cloud, the WhatsApp move isn't a reflection on IBM's cloud.

    Deeper than public cloud

    According to CNBC's source, Facebook was at one point spending $2 million each month with IBM. Assuming that number is accurate, losing WhatsApp as a customer is a minor issue. IBM's cloud business generated $14.6 billion over the past 12 months. ... IBM's analytics business generated $4.5 billion of revenue during the first quarter alone, although only a portion of that is related to the cloud business. Analytics revenue grew by 7% year over year.

    Should IBM investors worry about Facebook pulling WhatsApp from the company's cloud platform? No. IBM will take a small revenue hit, but this move would have occurred regardless of which cloud platform WhatsApp was running on. The public cloud is only a part of IBM's cloud strategy, and the loss of a single customer doesn't change IBM's cloud growth story.

    ...

    https://www.fool.com/investing/2017/...-ado-abou.aspx

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