Instant Alert: Microsoft is going to invest a lot more cash in startups — here's what it wants in return

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Microsoft is going to invest a lot more cash in startups — here's what it wants in return

by Matt Weinberger on May 31, 2016, 3:12 PM

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In January 2016, Microsoft's venture capital arm got a new boss in the form of Qualcomm veteran Nagraj Kashyap.

In a new blog post, Kashyap lays out the changes coming to Microsoft Ventures — namely, that it'll be focusing a lot more on early-stage startups — and explains the tech titan's overall investment philosophy.

Here's the short version: Microsoft is looking for startups that can boost its most important products, including Windows, Office 365, the Azure cloud computing platform, and even the futuristic HoloLens holographic goggles.

The important part, from the blog post:

Companies developing product and services that complement Azure infrastructure, building new business SaaS applications, promoting more personal computing by enriching the Windows and HoloLens ecosystems, new disruptive enterprise, consumer productivity, and communication products around Office 365 are interesting areas from an investment perspective.

In other words, Microsoft is willing to financially support companies that are building awesome apps for HoloLens, or that are creating tools for the Azure cloud that help developers make and market their software. Those startups are creating products that would then boost sales and usage of Microsoft's platforms.

Kashyap writes that he's working with Peggy Johnson, Microsoft's head of business development, on Microsoft's venture efforts. We're already seeing a hint of what this might mean for the future. 

When Microsoft was building the Azure Container Service, a tool that helps Azure customers use the mega-hot software container technology, it turned to billion-dollar startups Docker and Mesosphere to actually power the product. Not coincidentally, Microsoft invested millions in Mesosphere's latest funding round.Peggy Johnson Microsoft

If this trend continues, we could see Microsoft slow down its industry-leading acquisition spree, instead choosing to partner with startups wherever it makes sense. It's cheaper than buying a company outright, and would leave the startup free to do what they do best.

"As with the rest of the Business Development team at Microsoft, our view is outward into the market — we focus on the inorganic growth of Microsoft, looking at where we can provide a step function, versus incremental progress," writes Kashyap.

SEE ALSO: Microsoft is changing how it invests in startups and has a new leader to help


 
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Instant Alert: Why Google and Microsoft shouldn't be worried about losing $50 billion Salesforce to Amazon

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Why Google and Microsoft shouldn't be worried about losing $50 billion Salesforce to Amazon

by Eugene Kim on May 31, 2016, 3:09 PM

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Google and Microsoft both lost out on a marquee customer last week, when Amazon Web Services snagged a $400 million partnership deal with Salesforce.

But Wall Street doesn't think it's a big loss for the two cloud vendors, both of which are playing catch up to Amazon. Rather, the deal is a taste of bigger things to come for the entire public cloud service industry. 

"We hardly believe this serves as a death blow to competing public clouds, like Microsoft's Azure, but rather an acknowledgment that public cloud infrastructure utilization is the wave of the future, even for leading SaaS vendors," financial research firm Stifel wrote in a note to investors last week.

Stifel's note underscores the massive shift to public cloud services that we're seeing across all industries. A growing number of companies are expanding their use of public cloud services, as opposed to running things in their own data centers, and Salesforce's deal with AWS highlights this trend. Even customers like financial services firm Capital One, which operate in highly regulated industries, are making the move over to the public cloud.

In fact, according to a survey by Cowen & Co. last week, companies currently store 24% of their workload in the public cloud on average, with the use rate expected to grow to 32% by 2021. A recent report by IDC showed this trend more clearly, saying public cloud spending will jump meaningfully at the expense of traditional IT infrastructure costs over the next few years.

IDC

SEE ALSO: The floodgates are about to open in a critical sector for Amazon, Microsoft, and Google


 
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Instant Alert: An exoplanet 1,200 light years away might be capable of sustaining life

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An exoplanet 1,200 light years away might be capable of sustaining life

by Madison Margolin on May 31, 2016, 3:04 PM

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A distant planet 1,200 light years away from Earth, which may have rocky topography and an ocean, could be capable of sustaining life, according to a new study.

"We found there are multiple atmospheric compositions that allow it to be warm enough to have surface liquid water," lead author Aomawa Shields, a postdoctoral program fellow at the University of California, Los Angeles, said in a press release. "This makes it a strong candidate for a habitable planet."

Dr. Shields and a team from the University of Washington published their study about the planet Kepler-62f, first discovered during NASA's 2013 Kepler mission, in the journal Astrobiology. Scientists determined that Kepler-62f, which is about 40 percent larger than Earth, is the outermost of five planets that orbit a star smaller and cooler than the sun. The planet's size suggests it could be rocky and perhaps have oceans.

The researchers used existing global climate models to simulate possible climates on Kepler-62f, while using the HNBody computer model to calculate its orbital path. They also entertained several possible scenarios of atmospheric conditions to determine whether the planet could sustain life.

With all this information, the team created computer simulations of the planet based on three different kinds of conditions. The first envisioned the planet with an atmosphere as thick as Earth or thicker. The second condition provided different carbon dioxide ranges, from about the same as Earth's to 2,500 times Earth's level. The third possible condition displayed different configurations for the planet's orbital path.

Kepler-62f could be habitable under several scenarios, they concluded, which differ by how much carbon dioxide is in the atmosphere. If its atmosphere were three to five times as thick as Earth's, for example, and composed completely of carbon dioxide, it might even sustain life year-round. But habitable conditions would be temporarily possible, during parts of its orbit, even if Kepler-62f only has the same amount of carbon dioxide as Earth.

"If it doesn't have a mechanism to generate lots of carbon dioxide in its atmosphere to keep temperatures warm, and all it had was an Earth-like amount of carbon dioxide, certain orbital configurations could allow Kepler-62f's surface temperatures to temporarily get above freezing during a portion of its year," Shields said. "And this might help melt ice sheets formed at other times in the planet's orbit."

So far, over 2,300 exoplanets — planets that orbit stars outside the solar system — have been identified, but only a few dozen are potentially habitable. Yet even with these thousands of exoplanets, and a few thousand more planet candidates, it is still unconfirmed whether life exists outside Earth.

Shields said the same techniques used to study Kepler-62f could also be applied to other planets to determine whether or not they are habitable. "This will help us understand how likely certain planets are to be habitable over a wide range of factors, for which we don't yet have data from telescopes," said Shields. "And it will allow us to generate a prioritized list of targets to follow up on more closely with the next generation of telescopes that can look for the atmospheric fingerprints of life on another world."

SEE ALSO: NASA just discovered 1,284 new planets — here's how many could potentially support life

DON'T MISS: 8 of the most compelling places we could discover alien life outside our solar system


 
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A flight attendant answers the 20 questions you've always wanted to ask

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May 31, 2016
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