☁️ Azure Cloud: EU's Latest Target!

What’s in today’s Business Edge update?

Microsoft's Azure Cloud is under EU's scrutiny for potential anti-competitive practices, and Amazon secures a whopping $1B in tax breaks for Oregon data centers, strengthening AWS's global footprint.

But that's not all! From Microsoft leveraging AI solutions to revolutionize fundraising for non-profit cloud services to Amazon reaching an epic deal with Embracer Group for a Tolkien-inspired MMO game.

Buckle up, and let's dive right in!

🌐 Big Tech Digest

Concise summaries of the most interesting tech news stories from Big Tech.

[1] Microsoft's Azure Cloud in EU's Crosshairs: A Probe into Potential Anti-Competitive Practices

The European Union's antitrust arm is taking a closer look at Microsoft's Azure cloud business. The informal probe aims to discern if the tech giant has misused its access to sensitive business data from cloud firms it partners with, thereby pushing competitors out of the market.

More:

• Competitors and customers are being questioned about Microsoft's potential misuse of business-sensitive data.

• The EU's actions could presage a formal investigation in the near future.

• Cloud firms, including CISPE linked to Amazon Web Services, have previously voiced complaints about Microsoft's behavior.

• Microsoft is concurrently seeking global regulatory approval for its $69 billion acquisition of Activision Blizzard Inc.

_{Tags: #Microsoft, #Azure, #Regulation, #Cloud, #M&A}

Read more about it at —> (read time: 4 minutes)

Insight:

This informal probe by the EU's antitrust arm primarily impacts Microsoft at the company level but also carries repercussions industry-wide and globally. If the investigation concludes that Microsoft has used its access to sensitive data to disadvantage competitors, it could result in considerable penalties and stricter regulations. This would not only alter the competitive landscape in the cloud industry but also set a precedent for antitrust measures in the tech sector worldwide. As such, we foresee this development adding to the ongoing dialogue about competition and fairness in the tech industry.

[2] Amazon Scores $1B in Tax Breaks for Oregon Data Centers: A Boost to AWS Global Footprint

Amazon has secured roughly $1 billion in tax breaks to construct five new data centers in Oregon to expand its AWS cloud services. The company, a significant taxpayer in Morrow County, Oregon, will be exempted from nearly 75% of the property taxes other businesses in the region pay.

More:

• Amazon plans to build five new data centers in Oregon following approval of tax breaks worth an estimated $1 billion.

• The Seattle-based company invests billions annually on new data centers in the U.S. and globally to increase its cloud services reach via AWS.

• AWS is planning to continue its expansion with no specific timeline for the completion of the new data centers in Oregon.

_{Tags: #Amazon, #AWS, #Cloud, #BigTech}

Read more about it at —> (read time: 4 minutes)

Insight:

This news has an impact at the company, market, and industry-wide levels. With the approved tax breaks, Amazon can further expand its AWS services, solidifying its dominant position in the global cloud market. This development means that we're likely to see a continued trend of tech giants strategically leveraging incentives and building infrastructure to consolidate market dominance. Also, the move might trigger a response from other industry players and governments alike, potentially shaping future regulatory and competition landscapes in the tech sector.

[3] Microsoft's Game-Changer: AI Solutions for Nonprofit Cloud Services to Revolutionize Fundraising

Microsoft is introducing new AI tools to its Cloud for Nonprofit, aiming to transform the nonprofit sector. These tools are designed to enhance the way fundraisers engage with donors, manage campaigns, and streamline operations. A private preview of an AI-powered fundraising propensity model has also been announced, which allows nonprofits to use predictive forecasting for fundraising goals and identify potential donors.

More:

• Microsoft's new AI tools can predict donor behavior and fundraising outcomes, addressing a significant challenge for many nonprofits that lack access to actionable data.

• Microsoft's AI enhancements include a new Fundraising dashboard, Dynamics 365 Marketing, and Microsoft Viva Sales AI Copilot integrated with Microsoft Teams Premium.

• Microsoft is working on an AI-based donor propensity model to predict donor behavior, with general availability expected later this year.

_{Tags: #Microsoft, #AI, #Cloud, #Nonprofit}

Read more about it at —> (read time: 6 minutes)

Insight:

This announcement is mainly of company and industry-wide impact. Microsoft's latest AI-powered offerings will help nonprofits overcome a persistent challenge: making the most of limited resources. By integrating AI into fundraising and engagement tools, we can expect a shift in how nonprofits operate, leading to more effective donor engagement and fundraising campaigns. Additionally, we might anticipate a ripple effect across the tech industry, with other companies likely to follow suit and offer similar solutions, leading to an industry-wide transformation in the use of AI for social impact.

[4] Apple Secures Dominance: Snaps Up 90% of TSMC's 3nm Capacity for 2023

Apple has reportedly booked almost 90% of Taiwan Semiconductor Manufacturing Company's (TSMC) baseline 3nm process technology (N3B) capacity for 2023. This supply will primarily feed into the production of new iPhones, MacBooks, and iPads, bolstering TSMC's revenue growth in Q2 and limiting its annual revenue decline to single digits despite market challenges.

More:

• Apple's booking comprises nearly 90% of TSMC's N3B capacity for 2023.

• TSMC's N3B will dominate 90% of its N3 family capacity in the same year.

• This booking is expected to strengthen TSMC's revenue growth in Q2 and ensure a modest decrease in annual revenue, despite facing market headwinds.

_{Tags: #Apple, #TSMC, #Big tech}

Read more about it at —> (read time: 1 minute)

Insight:

This development has company-level and industry-wide implications. For Apple, securing such a significant chunk of TSMC's advanced 3nm capacity ensures a steady supply for its devices in 2023, which could translate to a competitive advantage in maintaining its product release timelines and meeting customer demand. This move might exacerbate the global chip shortage for the semiconductor industry, given that one tech giant is monopolizing a large portion of TSMC's capacity. As such, we might see other tech companies scrambling for alternatives or facing potential production delays.

⚡️Startup bites

Brief news summaries from the world of startups that provide quick and easy-to-consume information.

Amazon has reached a deal with Embracer Group, the company that holds the IP rights for “The Lord of the Rings” and “The Hobbit,” to release a massively multiplayer online (MMO) game based on the works of J.R.R. Tolkien. The upcoming game will be an open-world MMO adventure set in Middle-earth, featuring the stories of “The Hobbit” and “The Lord of the Rings” literary trilogy. (link)

AI algorithms, trained on millions of medical records, can predict the onset of pancreatic cancer up to three years before human doctors, offering a new approach to early detection and treatment of the deadly disease. (link)

Amazon aims to integrate a ChatGPT-style conversational search experience into its online store, aiming to enhance product discovery, comparison, and personalized suggestions. (link)

After a failed IPO and dropping from a $5.7 billion valuation to filing for Chapter 11 bankruptcy, media company Vice is set to be acquired by its lenders for $225 million. (link)

SAP plans to expand collaboration with Microsoft on AI projects in recruitment, integrating its SuccessFactors solutions with Microsoft's 365 Copilot and Azure OpenAI Service. (link)

Tiger Global, facing significant writedowns, is reportedly considering selling some startup stakes, marking a shift in its investment strategy amid recent losses. (link)

Jamie Siminoff, founder of the video doorbell company Ring, is stepping down from Amazon, according to an announcement by Ring's new CEO, Liz Hamren. Siminoff's departure comes after a decade with Ring and five years with Amazon. (link)

🔍 Extra

A mix of learning links, software products, deals, and other interesting content.

Ark Invest's Cathie Wood suggests that the rising influence of ChatGPT plugins could disrupt Apple, particularly threatening the high-margin App Store, amidst the stagnation of Apple's base hardware business. Despite slower iPhone sales, investors have continued to support Apple due to its growing, high-margin services sector. However, Wood believes that the development of AI technologies like ChatGPT could pose a significant threat to Apple's services business. (link)

Apple's much-anticipated AR/VR headset has received early praise from Oculus co-founder Palmer Luckey, ahead of its expected unveiling at WWDC 2023. In a recent tweet, Luckey attested to the quality of Apple's mixed-reality wearable. His comment hints at firsthand experience with the device, rumored to be named either the Apple Reality One or the Apple Reality Pro. (link)

A recent report from SaaS Capital, examining over 1,500 SaaS companies, discovered that yearly contracts don't significantly enhance Net Revenue Retention (NRR), with even multi-year contracts having only a modest impact. The research highlights that median NRR stands at 102% for all SaaS companies, with NRR improving as companies cross the $10m ARR mark. (link)