"If you look at the enterprise, there's just enormous enthusiasm to deploy AI, but the problem is that the infrastructure, the power, and the operational foundation that is required to run it just aren't there," Alex Bouzari, CEO of DDN, told The Register. "And so as a result, it pops up in the financial elements with IT projects getting delayed, the GPUs being underutilized, power costs going up. And so the economics, I think, for lots of organizations don't pencil out because of these challenges."
Software development used to be simpler, with fewer choices about which platforms and languages to learn. You were either a Java, .NET, or LAMP developer. You focused on AWS, Azure, or Google Cloud. Full-stack developers learned the intricacies of selected JavaScript frameworks, relational databases, and CI/CD tools. In the best of times, developers advanced their technology skills with their employer's funding and time to experiment. They attended conferences, took courses, and learned the low-code development platforms their employers invested in.
With the rapid advances in cloud and artificial intelligence, the strategic role of technology in business is fundamentally shifting from being merely a business enabler to becoming the core transformation agent for growth-and, increasingly, survival. Yet as organizations adopt or expand their enterprise cloud platforms to stay competitive and solve new business problems, they face critical challenges: how to understand the scope of the financial, skills, and labor investments they need;
The Dutch government will investigate the consequences of the American IT company Kyndryl's takeover of the Dutch cloud service provider Solvinity. The company plays an essential role in the national identity system DigiD. Solvinity believes that the collaboration with Kyndryl will offer more opportunities to continue innovating in IT management, security, and automation. "We are aware of the questions that are circulating in the market," said CEO Daniëlle Schuur earlier this month.
In the company's annual Cloud Readiness Report 70% of CEOs admit they built their current cloud environment "by accident, rather than by design" - this often entailed periodic upgrades aimed at addressing short-term needs, rather than focusing on longer term strategic improvements. Kyndryl said this shows that many lacked a "deliberate strategy" when pursuing cloud transformation projects, and the effects of this are starting to show with huge workload pressure placed on cloud environments, as well as growing security threats and evolving regulatory requirements.
These Resource Action (RA) notifications tell staff that they have 30 days to find another position within the company or they will be let go, with a few months of severance pay. Most of those on notice will not find new positions and will leave the company. We've heard from insiders and former employees that the target headcount reduction is about 45 percent within IBM's US infrastructure group.
On Wednesday, Alphabet, Google's parent company, reported its first-ever $100 billion quarter. Revenue rose 16 percent to $102.3 billion. Net income jumped 33 percent to $34.98 billion. Those are not the numbers of a company whose main business is being disrupted. It's more like the numbers of a company that's quietly figuring out how to change with the behavior of its users.
"Freedom encourages you to try things," Eamonn said. "I set up a company with a few other colleagues back in 1998. And then we set up a consulting company that was doing the same sort of thing we were working on, but via ourselves and for customers in Ireland. It was really good fun. Tough, but you learn a lot doing that."