Welcome!

IBM Cloud Authors: Liz McMillan, Elizabeth White, Pat Romanski, Yeshim Deniz, Shelly Palmer

Related Topics: Artificial Intelligence, Machine Learning , @CloudExpo

Artificial Intelligence: Article

The Hotel California of #AI | @CloudExpo @ReneBuest #ArtificialIntelligence

The Internet Giants are fully embracing Artificial Intelligence

In 1977, the Eagles released "Hotel California", a song about drugs and the effects an addiction has on people. Putting "We are all just prisoners here, of our own device" in the context of our digital lifestyle today we find a lot of truth. There is a reason why Google provides most of its services for free or why Amazon wants us to have an Echo in every home or why Facebook has become our directory of "friends." What looks pretty convenient is a threat. It is a threat to the end consumers but also a threat to the established economy. And even if we have the choice to check out any time - we will never leave.

The Feast of the Beasts
After already two decades, the Internet giants - speaking of Amazon, Google, Facebook, Alibaba and Baidu - are still collecting tons of data, filling their databases with information of everyone's knowledge, opinions, recommendations, locations, movements, buying behavior, relation status, lifestyle, etc. This is not a secret and nothing new. And there is no end in sight. On the contrary, almost every month, new services or devices are released to provide a better user experience, make our life more convenient and increase our dose of digital addiction.

Amazon, Google, Facebook and Co. have become ubiquitous in our life. And thanks to the Internet of Things, the gap between our analog and digital life is getting smaller and smaller. After providing a massive amount of services getting us on the web-hook respectively the device-hook via smartphones and tablets, the Internet giants are going to make themselves comfortable in everyone's home.

Smart home devices like Nest, Tado or Netatmo are just the beginning of a new breed of appliance classes that are becoming the eyes in people's private sphere that haven't been connected to the internet and are yet to become the grapplers of Google & Co. Intelligent private assistants like Amazon Echo or Google Home have become the next evolutionary level, which can be used to control smart home devices or make our lives easier by simply using our voice. On a side note, we should use the term "intelligent" very carefully since the commands are pretty much pre-defined scripts. And frankly speaking, I don't have the impression that neither Apple's Siri nor Amazon's Alexa (the Artificial Intelligence [AI] Engine behind Echo) is currently learning from my interactions.

However, this progress of technological developments shows one thing: Amazon, Google & Co. find new ways to engage with us over other channels, collecting the data, information and knowledge they need to make better decisions and deliver better answers back to us. Therefore, they clearly follow one purpose. Every one of us is simply being used to train their Artificial Intelligence on a daily basis. Meaning, all the services Google & Co. offer to their customers are aimed at drawing a map of the world with the data they get.

Effect on the End Consumers: Convenience in the Rat Race
End consumers basically do not have much to complain about. Following the quid pro quo principle, Google and Facebook, in particular, provide fancy services for free and just take data in return. The digital addiction plays perfectly into their hands. End consumers have checked-in into the "Hotel California." And even if they can check-out at any time, the question is, do they want to leave?

The tragic answer to this question is no. Once one is part of this circle, it is pretty hard or impossible to leave. The reason is that everything is becoming digital. Our society will reach a point where nothing will work without digital services anymore. You could also say that someone who doesn't exist digitally, doesn't exist anymore. And by making the user experience even more convenient, nobody has to be a technology expert anymore. This makes entering the "Hotel California" trap even worse since the majority of our society doesn't know how things are connected anymore - doesn't know what is really going on. Convenience in the rat race.

Bottom line, the rat race providing everyone's data is the foundation for Google & Co.'s success and their weapons against the established economy.

Effect on the (Established) Economy: Move, Change and Innovate or Die
The most sarcastic part of it is that everyone of us is supporting Google & Co. against the established economy, even the established economy itself. Companies of the established economy also have become customers of the Internet giants. For a good reason. In most cases, it doesn't make sense anymore to run your own IT infrastructure and services in own environments or it is simply too expensive to develop innovative services on your own that already have been developed by Amazon, Google & Co. However, the established economy is stuck in a vicious circle. Even if they still own their data - from a legal perspective - this doesn't mean that they exclusively own the knowledge from their data.

Data and insights deduced from data are the foundation on which the Internet giants have built big parts of their businesses. They are working with data and monetizing it. However, this is just one single piece of a big machinery of how the Internet giants work. But this is one piece that gives them the power to disrupt any current working business model of the established economy. Amazon is just one example that already has started to cut out the intermediary in every possible way. We can be sure that companies like DHL, UPS or FedEx are not going to exist in the way they are doing business today - hint: Amazon Prime Air. Furthermore, Amazon has put everything into place to become a fully end-to-end provider of goods. Digital as well as non-digital.

Speaking of Artificial Intelligence, the Internet giants are fully embracing AI. However, most leaders underestimate the effect this will have on their businesses. But at the same time, the Internet giants are heavily investing into AI. The established economy is the big loser in this game.

More Stories By Rene Buest

Rene Buest is Director Market Research & Technology Evangelism at Arago. Prior to that he was Senior Analyst and Cloud Practice Lead at Crisp Research, Principal Analyst at New Age Disruption and member of the worldwide Gigaom Research Analyst Network. At this time Rene was considered as top cloud computing analyst in Germany and one of the worldwide top analysts in this area. In addition, he was one of the world’s top cloud computing influencers and belongs to the top 100 cloud computing experts on Twitter and Google+. Since the mid-90s he is focused on the strategic use of information technology in businesses and the IT impact on our society as well as disruptive technologies.

Rene Buest is the author of numerous professional technology articles. He regularly writes for well-known IT publications like Computerwoche, CIO Magazin, LANline as well as Silicon.de and is cited in German and international media – including New York Times, Forbes Magazin, Handelsblatt, Frankfurter Allgemeine Zeitung, Wirtschaftswoche, Computerwoche, CIO, Manager Magazin and Harvard Business Manager. Furthermore Rene Buest is speaker and participant of experts rounds. He is founder of CloudUser.de and writes about cloud computing, IT infrastructure, technologies, management and strategies. He holds a diploma in computer engineering from the Hochschule Bremen (Dipl.-Informatiker (FH)) as well as a M.Sc. in IT-Management and Information Systems from the FHDW Paderborn.

@ThingsExpo Stories
The 21st International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Machine Learning and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding busin...
SYS-CON Events announced today that Hitachi Data Systems, a wholly owned subsidiary of Hitachi LTD., will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City. Hitachi Data Systems (HDS) will be featuring the Hitachi Content Platform (HCP) portfolio. This is the industry’s only offering that allows organizations to bring together object storage, file sync and share, cloud storage gateways, and sophisticated search and...
SYS-CON Events announced today that Peak 10, Inc., a national IT infrastructure and cloud services provider, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Peak 10 provides reliable, tailored data center and network services, cloud and managed services. Its solutions are designed to scale and adapt to customers’ changing business needs, enabling them to lower costs, improve performance and focus intern...
SYS-CON Events announced today that delaPlex will exhibit at SYS-CON's @CloudExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. delaPlex pioneered Software Development as a Service (SDaaS), which provides scalable resources to build, test, and deploy software. It’s a fast and more reliable way to develop a new product or expand your in-house team.
SYS-CON Events announced today that Progress, a global leader in application development, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Enterprises today are rapidly adopting the cloud, while continuing to retain business-critical/sensitive data inside the firewall. This is creating two separate data silos – one inside the firewall and the other outside the firewall. Cloud ISVs oft...
SYS-CON Events announced today that Cloud Academy will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Cloud Academy is the industry’s most innovative, vendor-neutral cloud technology training platform. Cloud Academy provides continuous learning solutions for individuals and enterprise teams for Amazon Web Services, Microsoft Azure, Google Cloud Platform, and the most popular cloud computing technologies. Ge...
Existing Big Data solutions are mainly focused on the discovery and analysis of data. The solutions are scalable and highly available but tedious when swapping in and swapping out occurs in disarray and thrashing takes place. The resolution for thrashing through machine learning algorithms and support nomenclature is through simple techniques. Organizations that have been collecting large customer data are increasingly seeing the need to use the data for swapping in and out and thrashing occurs ...
SYS-CON Events announced today that Interoute has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Interoute is the owner operator of Europe's largest network and a global cloud services platform, which encompasses over 70,000 km of lit fiber, 15 data centers, 17 virtual data centers and 33 colocation centers, with connections to 195 additional partner data centers. Our full-service Unifie...
SYS-CON Events announced today that Fusion, a leading provider of cloud services, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Fusion, a leading provider of integrated cloud solutions to small, medium and large businesses, is the industry’s single source for the cloud. Fusion’s advanced, proprietary cloud service platform enables the integration of leading edge solutions in the cloud, including cloud...
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm.
SYS-CON Events announced today that WineSOFT will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Based in Seoul and Irvine, WineSOFT is an innovative software house focusing on internet infrastructure solutions. The venture started as a bootstrap start-up in 2010 by focusing on making the internet faster and more powerful. WineSOFT’s knowledge is based on the expertise of TCP/IP, VPN, SSL, peer-to-peer, mob...
SYS-CON Events announced today that DivvyCloud will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. DivvyCloud software enables organizations to achieve their cloud computing goals by simplifying and automating security, compliance and cost optimization of public and private cloud infrastructure. Using DivvyCloud, customers can leverage programmatic Bots to identify and remediate common cloud problems in rea...
Detecting internal user threats in the Big Data eco-system is challenging and cumbersome. Many organizations monitor internal usage of the Big Data eco-system using a set of alerts. This is not a scalable process given the increase in the number of alerts with the accelerating growth in data volume and user base. Organizations are increasingly leveraging machine learning to monitor only those data elements that are sensitive and critical, autonomously establish monitoring policies, and to detect...
SYS-CON Events announced today that Linux Academy, the foremost online Linux and cloud training platform and community, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Linux Academy was founded on the belief that providing high-quality, in-depth training should be available at an affordable price. Industry leaders in quality training, provided services, and student certification passes, its goal is to c...
SYS-CON Events announced today that HTBase will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. HTBase (Gartner 2016 Cool Vendor) delivers a Composable IT infrastructure solution architected for agility and increased efficiency. It turns compute, storage, and fabric into fluid pools of resources that are easily composed and re-composed to meet each application’s needs. With HTBase, companies can quickly prov...
SYS-CON Events announced today that Systena America will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Systena Group has been in business for various software development and verification in Japan, US, ASEAN, and China by utilizing the knowledge we gained from all types of device development for various industries including smartphones (Android/iOS), wireless communication, security technology and IoT serv...
SYS-CON Events announced today that CollabNet, a global leader in enterprise software development, release automation and DevOps solutions, will be a Bronze Sponsor of SYS-CON's 20th International Cloud Expo®, taking place from June 6-8, 2017, at the Javits Center in New York City, NY. CollabNet offers a broad range of solutions with the mission of helping modern organizations deliver quality software at speed. The company’s latest innovation, the DevOps Lifecycle Manager (DLM), supports Value S...
SYS-CON Events announced today that Infranics will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Since 2000, Infranics has developed SysMaster Suite, which is required for the stable and efficient management of ICT infrastructure. The ICT management solution developed and provided by Infranics continues to add intelligence to the ICT infrastructure through the IMC (Infra Management Cycle) based on mathemat...
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
SYS-CON Events announced today that Loom Systems will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Founded in 2015, Loom Systems delivers an advanced AI solution to predict and prevent problems in the digital business. Loom stands alone in the industry as an AI analysis platform requiring no prior math knowledge from operators, leveraging the existing staff to succeed in the digital era. With offices in S...