AT&T gets Microsoft and IBM to help with its cloud homework

US telco AT&T has decided it’s time to raise its cloud game and so has entered into strategic partnerships with Microsoft and IBM.

The Microsoft deal focuses on non-network applications and enables AT&T’s broader strategy of migrating most non-network workloads to the public cloud by 2024. The rationale for this is fairly standard: by moving a bunch of stuff to the public cloud AT&T will be able to better focus on its core competences, but let’s see how that plays out.

IBM will be helping AT&T Business Solutions to better provide solutions to businesses. The consulting side will modernize its software and bring it into the IBM cloud, where they will use Red Hat’s platform to manage it all. In return IBM will make AT&T Business its main SDN partner and general networking best mate.

“AT&T and Microsoft are among the most committed companies to fostering technology that serves people,” said John Donovan, CEO of AT&T. “By working together on common efforts around 5G, the cloud, and AI, we will accelerate the speed of innovation and impact for our customers and our communities.”

“AT&T is at the forefront of defining how advances in technology, including 5G and edge computing, will transform every aspect of work and life,” said Satya Nadella, CEO of Microsoft. “The world’s leading companies run on our cloud, and we are delighted that AT&T chose Microsoft to accelerate its innovation. Together, we will apply the power of Azure and Microsoft 365 to transform the way AT&T’s workforce collaborates and to shape the future of media and communications for people everywhere.”

“In AT&T Business, we’re constantly evolving to better serve business customers around the globe by securely connecting them to the digital capabilities they need,” said Thaddeus Arroyo, CEO of AT&T Business. “This includes optimizing our core operations and modernizing our internal business applications to accelerate innovation. Through our collaboration with IBM, we’re adopting open, flexible, cloud technologies, that will ultimately help accelerate our business leadership.”

“Building on IBM’s 20-year relationship with AT&T, today’s agreement is another major step forward in delivering flexibility to AT&T Business so it can provide IBM and its customers with innovative services at a faster pace than ever before,” said Arvind Krishna, SVP, Cloud and Cognitive Software at IBM. “We are proud to collaborate with AT&T Business, provide the scale and performance of our global footprint of cloud data centers, and deliver a common environment on which they can build once and deploy in any one of the appropriate footprints to be faster and more agile.”

Talking of the US cloud scene, the Department of Defense is reportedly looking for someone to provide some kind of Skynet-style ‘war cloud’ in return for chucking them $10 billion of public cash. Formally known as the Joint Enterprise Defense Infrastructure (yes, JEDI), this is designed to secure military and classified information in the event of some kind of catastrophic attach, contribute to cyber warfare efforts and enable the dissemination of military intelligence to the field.

It looks like the gig will be awarded to just one provider, which had led to much jostling for position among the US cloud players. The latest word on the street is that either AWS or Microsoft will get the work, which has prompted considerable moaning from IBM and Oracle and reported concern from President Trump, prompted by politicians apparently repaying their lobbying cash. Here’s a good summary of all that from Subverse.

IBM and Google reportedly swap morals for cash in Chinese surveillance JV

IBM and Google executives should be bracing for impact as the comet of controversy heads directly towards their offices.

Reports have emerged, via the Intercept, suggesting two of the US’ most influential and powerful technology giants have indirectly been assisting the Chinese Government with its campaign of mass-surveillance and censorship. Both will try to distance themselves from the controversy, but this could have a significant impact on both firms.

The drama here is focused around a joint-venture, the OpenPower Foundation, founded in 2013 by Google and IBM, but features members such as Red Hat, Broadcom, Mellanox, Xilinx and Rackspace. The aim of the open-ecosystem organization is to facilitate and share advances in networking, server, data storage, and processing technology.

To date, the group has been little more than another relatively uninteresting NPO, serving a niche in the industry, though one initiative is causing the stir. The OpenPower Foundation has been working with Xilinx and Chinese firm Semptian to create a new breed of chips capable of enabling computers to process incredible amounts of data. This might not seem extraordinary, though the application is where the issue has been found.

On the surface, Semptian is a relatively ordinary Chinese semiconductor business, but when you look at its most profitable division, iNext, the story becomes a lot more sinister. iNext specialises in selling equipment to the Chinese Government to enable the mass-surveillance and censorship projects which have become so infamous.

It will come as little surprise a Chinese firm is aiding the Government with its nefarious objectives, but a link to IBM and Google, as well as a host of other US firms, will have some twitching with discomfort. We can imagine the only people who are pleased at this news are the politicians who are looking to get their faces on TV by theatrically condemning the whole saga.

Let’s start with what iNext actually does before moving onto the US firms involved in the controversy. iNext works with Chinese Government agencies by providing a product called Aegis. Aegis is an interception and analysis system which has been embedded into various phone and internet networks throughout the country. This is one of the products which enables the Chinese Government to have such a close eye on the activities of its citizens.

Documentation acquired by The Intercept outlines the proposition in more detail.

“Aegis is not only the standard interception system but also the powerful analysis system with early warning and timely action capabilities. Aegis can work with all kinds of networks and 3rd party systems, from recovering, analysing, exploring, warning, early warning, locating to capturing. Aegis provides LEA with an end to end solution described as Deep Insight, Early Warning and Timely Action.”

Although the majority of this statement is corporate fluff, it does provide some insight into the way in which the technology actually works. This is an incredibly powerful surveillance system, which is capable of locating individuals through application usernames, IP addresses or phone numbers, as well as accurately tracking the location of said individuals on a real-time basis.

Perhaps one of the most worrying aspect of this system is the ‘pre-crime’ element. Although the idea of predictive analytics in some societies has been met with controversy and considerable resistance, we suspect the Chinese Government does not have the same reservations.

iNext promises this feature can help prevent crime through the introduction of an early warning system. This raises all sorts of ethical questions, as while the data estimates might be accurate to five nines, can you arrest someone when they haven’t actually committed a crime. This is the sticky position Google and IBM might have found itself in.

OpenPower has said that it was not aware of the commercial applications of the projects it manages, while its charter prevents it from getting involved. The objective of the foundation is to facilitate the progress of technology, not to act as judge and jury for its application. It’s a nice little way to keep controversy at arm’s length; inaction and negligence is seen as an appropriate defence plea.

For IBM and Google, who are noted as founding members of the OpenPower Foundation, a stance of ignorance might be enough to satisfy institutions of innocence, but the court of public opinion could swing heavily the other direction. An indirect tie to such nefarious activities is enough for many to pass judgment.

When it comes to IBM, the pursuit of innocence becomes a little bit trickier. IBM is directly mentioned on the Semptian website, suggesting Big Blue has been working closely with the Chinese firm for some time, though the details of this relationship are unknown for the moment.

For any of the US firms which have been mentioned here, it is not a comfortable situation to be in. Although they might be able to plead ignorance, it is quite difficult to believe. These are monstrous multi-national billion-dollar corporations, with hordes of lawyers, some of whom will be tasked with making sure the technology is not being utilised in situations which would get the firm in trouble.

Of course, this is not the first time US technology firms have found themselves on the wrong side of right. There have been numerous protests from employees of the technology giants as to how the technology is being applied in the real-world. Google is a prime example.

In April 2018, Google employees revolted over an initiative the firm was participating in with the US Government. Known as Project Maven, Google’s AI technology was used to improve the accuracy of drone strikes. As you can imagine, the Googlers were not happy at the thought of helping the US Government blow people up. Project Dragonfly was another which brought internal uproar, this time the Googlers were helping to create a version of the Google news app for China which would filter out certain stories which the Government deemed undesirable.

Most of the internet giants will plead their case, suggesting their intentions are only to advance society, but there are numerous examples of contracts and initiatives which contradict this position.

Most developers or engineers, especially the ones who work for a Silicon Valley giant, work for the highest bidder, but there is a moral line few will cross. As we’ve seen before, employees are not happy to aide governments in the business of death, surveillance or censorship, and we suspect the same storyline will play out here.

Google and IBM should be preparing themselves for significant internal and external backlash.

IBM and Red Hat seal the deal

The $34 billion acquisition of opensource enterprise software vendor Red Hat by venerable tech giant IBM has finally been completed.

The mega M&A was first announced last October and, given the size of it, seems to have gone through relatively quickly. Now begins the significant undertaking of integrating two such massive organisations that may well have quite distinct cultures.

IBM was founded in 1911 and has undergone several transformations to become the enterprise software and services company it is today. Red Hat only came into existence in 1993 and has always focused on the decidedly un-corporate open-source software community. IBM will be hoping some of its youthful vigour and flexibility will rub off, but that remains to be seen.

The official line is that the acquisition makes IBM one of the leading hybrid cloud providers as well as augmenting its software offering. There’s much talk Red Hat’s independence being preserved but, of course, it will now be taking orders from IBM.

“Businesses are starting the next chapter of their digital reinventions, modernizing infrastructure and moving mission-critical workloads across private clouds and multiple clouds from multiple vendors,” said Ginni Rometty, IBM chairman, president and CEO. “They need open, flexible technology to manage these hybrid multicloud environments. And they need partners they can trust to manage and secure these systems.”

“When we talk to customers, their challenges are clear: They need to move faster and differentiate through technology,” said Jim Whitehurst, president and CEO of Red Hat (what’s the difference?). “They want to build more collaborative cultures, and they need solutions that give them the flexibility to build and deploy any app or workload, anywhere.

“We think open source has become the de facto standard in technology because it enables these solutions. Joining forces with IBM gives Red Hat the opportunity to bring more open source innovation to an even broader range of organizations and will enable us to scale to meet the need for hybrid cloud solutions that deliver true choice and agility.”

That’s it really. There’s lots aspirational talk and general banging on in the press release, but you get the gist of it. Whitehurst will join the senior management team and report into Rometty, who seems to possess every senior management position worth having. IBM has been steadily increasing cloud as a proportion of total revenues and the pressure is now on to take that growth to the next level.

It’s Red Hat, but not as we know it

Software vendor Red Hat is celebrating the launch of Enterprise Linux 8 and the approval of its acquisition by IBM with a change of wardrobe.

As arguably the best known company to be named after an item of clothing, the hat itself is central to Red Hat’s brand and image, so any decision to muck about with it, therefore, is not to be taken lightly. But when incoming CMO Tim Yeaton chatted to people about the logo he was distressed to hear they found the dude wearing the hat to be sinister and even evil.

Showing some of the qualities that presumably lead to his promotion Yeaton quickly concluded that having an ‘evil’ logo was a potential marketing liability and dedicated the next year and a half to resolving the matter in an appropriately open source way. This exhaustive process apparently came to a simple conclusion: ditch the dude, resulting in the dude-less logo you see above.

The evolution of the Red Hat logo coincides with a couple of other pretty significant milestones for the company. Tech giant IBM was recently advised that the US Department of Justice has concluded its review of the Red Hat acquisition and said it’s got no problem with it and as far as the US is concerned this is an unconditional green light. IBM apparently reckons the whole thing will be wrapped up later this year.

Lastly Red Hat recently announced the first major new version of its Enterprise Linux platform – RHEL 8. As a platform designed with datacenters in mind, RHEL is of increasing relevance to telcos as they move ever more of their stuff into the cloud and the edge. Red Hat is positioning RHEL 8 as the platform for the hybrid cloud era and name-dropped lots of other associated buzzwords like containers and devops. We wouldn’t even know which end of the box to open with this stuff, so hopefully this vid as well as some canned quotes will help you understand what the big deal is.

 

Stefanie Chiras, vice president and general manager, Red Hat Enterprise Linux, Red Hat

“Red Hat Enterprise Linux 8 embraces the role of Linux as IT’s innovation engine, crystallizing it into an accessible, trusted and more secure platform. Spanning the entirety of the hybrid cloud, the world’s leading enterprise Linux platform provides a catalyst for IT organizations to do more than simply meet today’s challenges; it gives them the foundation and tools to launch their own future, wherever they want it to be.”

Tibor Incze, technical lead, Red Hat Enterprise Linux, Datacom Systems

“The capacity for Red Hat Enterprise Linux 8 to not only run multiple versions of the same application or database on a specific operating system but to also have a clear and efficient way to manage them is a significant benefit to Datacom and our customers. As we continue to execute on our internal DevOps strategy, we’re also pleased to see improved container capabilities in the operating system and extensive automation, all factors that will help us bring differentiated services to our end users.”

John Gossman, distinguished engineer, Microsoft Azure

“We have seen growth in applications being deployed using Red Hat Enterprise Linux on Azure, including Microsoft SQL Server, for cloud-native, hybrid, and cloud migration scenarios. We’re excited to see what customers will create with Red Hat Enterprise Linux 8 on Azure with continued integrated support from Microsoft and Red Hat, as well as the operating system’s new capabilities to build applications for workloads like AI.”

Arlen Shenkman, executive vice president, Global Business Development and Ecosystems, SAP

“Red Hat Enterprise Linux 8 for SAP Solutions offers high availability capabilities, which are important for SAP workloads, and downtime is unacceptable for business critical applications such as S/4HANA. For more than two decades, we’ve worked with Red Hat on maintaining a stable, open foundation for SAP applications, helping our customers make smarter decisions, faster, across the hybrid cloud.”

IBM Vodafone partnership wins its first clients

IBM and Vodafone announced during Mobile World Congress 2019 that their $550 million cloud and AI partnership has signed its first heavy-weight clients.

SEAT, a Spanish sub-brand of the Volkswagen group, and KONE, a world leading lift and escalator supplier from Finland, have become the first customers of the open cloud and AI technologies offered by the IBM and Vodafone Business partnership.

SEAT is going to use the cloud, AI, and 5G technologies to facilitate its transformation into a “mobility services provider”. KONE’s main interest is in the IoT domain. With the new technologies it aims to move its customer service from reactive to proactive then predictive mode as well as to improve the efficiency of the monitoring and fix operations.

The partnership between IBM and Vodafone Business was announced last month. Although billed as a “joint venture”, Michael Valocchi, IBM’s General Manager of the new venture, clarified to Telecoms.com that it is not a formal joint venture or a separate organization but an 8-year strategic commercial partnership and $550M managed services agreement. IBM and Vodafone Business are going to put in equal amount of investment.

“IBM’s partnerships with global telco companies like Vodafone will help speed up the deployment of 5G and provide easier access to new technologies such as AI, blockchain, edge computing and IoT,” said Valocchi in a statement. “This is because the promise of 5G doesn’t just depend on fiber, spectrum and gadgets, but on advanced levels of integration, automation, optimization and security across the ever more complex IT systems that companies are building in a bid to transform.”

“By providing the open cloud, connectivity and portable AI technologies that companies need to manage data, workloads and processes across the breadth of their IT systems, Vodafone and IBM are helping to drive innovation and transform user experiences across multiple industries – from retail to agriculture,” added Greg Hyttenrauch, Co-leader of the new venture for Vodafone Business.

The partnership will become operational in Q2 this year. IBM told Telecoms.com that by that time Vodafone Business customers will immediately have access to IBM’s entire hybrid cloud portfolio to optimise and enhance their current solutions. These solutions and services are not dependent on 5G. In the future, clients will benefit from new solutions and services that the new venture will develop, combining IBM’s multi-cloud, AI, analytics and blockchain with IoT, 5G, and edge computing from Vodafone.

Considering that Vodafone is going to start with a non-standalone approach to 5G, the use cases for verticals that demand extreme low latency are hard to realise in the near future. The engineers at IBM’s stand also conceded that although Watson can be deployed and trained to support many scenarios, the implementation of mission critical cases will have to wait till end-to-end 5G network is in place.

Vodafone bags Big Blue as $550 million partner

Vodafone Business and IBM have signed-off on a new joint venture which will aim to develop systems to help data and applications flow freely around an organization.

The joint-venture, which will be operational in the first half of 2019, will aim to bring together the expertise of both the parties to solve one of the industry’s biggest challenges; multi-cloud interoperability and the removal of organizational siloes. On one side of the coin you have IBM’s cloud know-how while Vodafone will bring the IoT, 5G and edge computing smarts. A match made in digital transformational heaven.

“IBM has built industry-leading hybrid cloud, AI and security capabilities underpinned by deep industry expertise,” said IBM CEO Ginni Rometty. “Together, IBM and Vodafone will use the power of the hybrid cloud to securely integrate critical business applications, driving business innovation – from agriculture to next-generation retail.”

“Vodafone has successfully established its cloud business to help our customers succeed in a digital world,” said Vodafone CEO Nick Read. “This strategic venture with IBM allows us to focus on our strengths in fixed and mobile technologies, whilst leveraging IBM’s expertise in multi-cloud, AI and services. Through this new venture we’ll accelerate our growth and deepen engagement with our customers while driving radical simplification and efficiency in our business.”

The issue which many organizations are facing today, according to Vodafone, is the complexity of the digital business model. On average, 70% of organizations are operating in as many as 15 different cloud environments, leaning on the individuals USPs of each, but marrying these environments is a complex, but not new, issue.

Back in September, we had the chance to speak to Sachin Sony of Equinix about the emerging Data Transfer Project, an initiative to create interoperability and commonalities between the different cloud environments. The project is currently working to build a common framework with open-source code that can connect any two online service providers, enabling a seamless, direct, user-initiated portability of data between the two platforms This seems to be the same idea which the new IBM/Vodafone partnership is looking to tackle.

With this new joint-venture it’ll be interesting to figure out whether the team can build a proposition which will be any good. Vodafone has promised the new business will operate with a ‘start-up’ mentality, whatever that means when you take away the PR stench, under one roof. Hopefully the walk will be far enough away from each of the parent companies’ offices to ensure the neutral ground can foster genuine innovation.

This is a partnership which has potential. The pair have identified a genuine issue in the industry and are not attempting to solve it alone. Many people will bemoan the number of partnerships in the segment which seem to be nothing more than a feeble attempt to score PR points, but this is an example where expertise is being married to split the spoils.

German regulator effectively confirms IBM/T-Systems talks

As it does from time-to-time, German regulator Bundeskartellamt has published a list of mergers and acquisitions which is evaluating. IBM and T-Systems are lucky enough to make the list.

Reports of the discussions emerged over the weekend, with IBM rumoured to be considering taking the mainframe service business unit off the hands of the struggling T-Systems. Although the specifics of the deal are not completely clear right now, it would hardly be a surprise to learn T-Systems is attempting to slim the business down.

On the Bundeskartellamt website, there is a page which lists some of the main transactions which the regulator is considering in its role as merger overseer. These are mainly deals which are in the ‘first phase’ and usually passed unless there are any competition concerns. Although the description is not detailed, it lists IBM will be acquiring certain assets from T-Systems.

The news was initially broken by German-language newspaper Handelsblatt, quoting an internal email which suggested 400 employees would be transferred to the IBM business in May. Subsequently IT-Zoom has suggested IBM will be paying €860 million for the business unit.

The origins of such a deal can only lead back to one place; the office of T-Systems CEO Adel Al-Saleh. Al-Saleh was initially brought to the firm, having previously worked at IBM for almost two decades, to trim costs and salvage a business unit which, recently, has been nothing but bad news for parent company Deutsche Telekom. Aside from this saga, job cuts of roughly 10,000 have been announced since Al-Saleh’s appointment.

Confirmed back in June, the 10,000 job cuts were a result of a long-time losing battle to the more agile and innovative players such as AWS and Microsoft. Al-Saleh’s objective was to trim the fat, focusing on the more lucrative contracts, as well as more profitable, emerging segments of the IT and telco world.

While T-Systems and IBM do already have an established relationship, it seems options are running thin to make this business work effectively. With headcount going down from 37,000 to 27,000, its footprint dropping from 100 cities to 10 and this deal working through the cogs as we speak, Deutsche Telekom employees will hope this is the last of the bad news. Whether Al-Saleh feels this is enough restructuring to make the business work remains to be seen.

How easy will it be for IBM to digest Red Hat?

Imagine our surprise the day before a lunch scheduled with the CTO of Red Hat when IBM announced it was buying his company.

Sometimes the journalism gods, those that are left, smile on even the humblest of hacks and today it was our turn. Lunch with Chris Wright (pictured below, with said hack) had already been arranged with the promise of delivering the kind of light Linux chit-chat over a glass of red that we all secretly crave. But then, out of the blue (pun intended) IBM announced it’s going to buy Red Hat for $34 billion and things suddenly got a bit more spicy.

Now, you don’t get to be the CTO of a major company by speaking injudiciously to the press, so we didn’t expect Wright to have much to say on the relative merits of the acquisition itself. Instead we wanted to know more about what Red Hat brings to the table, such that a venerable tech giant would want to drop such a serious chunk of change on it.

The core of Red Hat’s product strategy for the past few years has been the hybrid cloud. In its simplest terms this refers to the use of both private, on-premise server capacity and the public cloud as found in colossal data centers provided by the likes of AWS, Microsoft and Google. Increasingly this applies to pretty much all larger enterprises so it’s a pretty important place to be if you’re serious about the B2B tech space.

Sharing this writer’s love of a pun, Wright conceded that the cloud is a nebulous term, but that’s why you need companies that have made it their business to get their heads around it, such as Red Hat. IBM is, and always has been, a B2B tech company, so it’s easy to see why it would want to buy a company that specialises in one of the most important and arcane manifestations of that.

Everyone in tech has probably had to puzzle over one of those baffling software architecture slides that attempt to explain how everything fits together via the use of endless rectangles piled on top of each other like some geeky game of Jenga. Throw hundreds of those into a virtualised environment spanning any number of actual physical locations and you get somewhere close to the kind of challenge faced by today’s CTO.

Between the cloud and the cloud user lies an extended value chain of technologies and services dedicated to making that relationship as useful and intuitive as possible. One good example of this is the banking app, through which anyone can now whizz thousands of pounds around the world in an instant. For this to be made possible a hell of a lot of robust technologies have to exist between the bank’s servers and the client device.

According to Wright, Red Hat plays across that whole value chain, so for that reason alone it’s easy to see its appeal to IBM. But Red Hat is also deeply rooted in the Linux, open-source culture, which isn’t necessarily an obvious fit with IBM’s notoriously rigid corporate philosophy. As with so much M&A, how effectively the cultures of the two organisations are reconciled will be the single most important factor in determining whether this deal goes down smoothly or results in corporate indigestion.

Chris Wright Red Hat Telecoms

IBM aims to boost its strategic imperatives with $34 billion acquisition of Red Hat

IBM has announced by far the largest acquisition in its history with the acquisition of cloud and open source software vendor Red Hat.

$34 billion is several times more than IBM has previously spent on an acquisition, which indicates just how important it thinks this is to its future prosperity. Red Hat has expanded from a developer of Linux-based business software to being involved in most places you might find B2B open source software, including the cloud and telecoms.

While most venerable tech companies seem to be in a constant state of so-called transformation, this has especially been the case with IBM as it seeks to replace its declining legacy businesses with shiny new ones. As a consequence it has four clear strategic imperatives in the form of cloud, security, analytics and mobile, revenue from which recently overtook legacy stuff for the first time.

But IBM has apparently decided this organic transformation isn’t happening quickly enough and has decided a nice, juicy bit of M&A is required to hasten the process. Most reports are focusing on how Red Hat will contribute to IBM’s hybrid cloud efforts, and thus give it a boost in competing with the likes of Amazon, but Red Hat’s activities in the telco cloud specifically shouldn’t be underplayed.

“The acquisition of Red Hat is a game-changer,” hyperbolised IBM Dictator (Chairman, President and CEO) Ginni Rometty. “It changes everything about the cloud market. IBM will become the world’s number one hybrid cloud provider, offering companies the only open cloud solution that will unlock the full value of the cloud for their businesses.

“Most companies today are only 20 percent along their cloud journey, renting compute power to cut costs,” she said. “The next 80 percent is about unlocking real business value and driving growth. This is the next chapter of the cloud. It requires shifting business applications to hybrid cloud, extracting more data and optimizing every part of the business, from supply chains to sales.”

IBM Red Hat Rometty Whitehurst cropped

“Open source is the default choice for modern IT solutions, and I’m incredibly proud of the role Red Hat has played in making that a reality in the enterprise,” said Jim Whitehurst, President and CEO, Red Hat (pictured, with Rometty). “Joining forces with IBM will provide us with a greater level of scale, resources and capabilities to accelerate the impact of open source as the basis for digital transformation and bring Red Hat to an even wider audience –  all while preserving our unique culture and unwavering commitment to open source innovation.”

Cloud and open source have been major themes in the tech M&A scene recently. Microsoft continued its transition from closed software box-shifter with the recent $7.5 billion acquisition of code sharing platform GitHub. Meanwhile open source big data vendors Cloudera and Hortonworks have decided to merge and earlier this year Salsforce dropped $6.5 billion on MuleSoft to power its Integration Cloud.

In M&A, the party line from the company being acquired is usually something along the lines of it enabling them to take the next step in its evolution thanks to the greater resources of its new parent, and this was no exception. “Powered by IBM, we can dramatically scale and accelerate what we are doing today,” said Whitehurst in his email to staff announcing the deal. “Imagine Red Hat with greater resources to grow into the opportunity ahead of us. Imagine Red Hat with the ability to invest even more and faster to accelerate open source innovation in emerging areas.” And so on.

He went on to explain that, while he will report directly to Rometty, Red Hat will continue to operate as a ‘distinct unit’, whatever that means. Usually this sort of talk is designed to sell the concept that it will remain the same company it was before the acquisition, but with loads more cash to play with. Let’s see.

IBM would be mad to mess around with Red Hat too much as it seems to be doing just fine and reported 14% revenue growth in its last quarterlies. Then again you don’t pay a 60% premium for a company just to accrue its revenue and how IBM integrates Red Hat into the rest of its offerings will be what determines the success of this bold move. There are, sadly, no signs the company plans to change its name to Big Blue Hat, which is a worrying early a missed opportunity.

IBM unveils software to detect AI bias, but how do you know it isn’t also biased?

IBM has unveiled its latest offering, the Fairness 360 Kit, which will help identify any bias in AI decision making and recommend adjustments.

It’s area of the burgeoning artificial intelligence segment which could prove to be its downfall. AI is supposed to set of technologies designed to make our lives easier, though the presence of bias in algorithms and outcomes could undermine mass market acceptance. Why would anyone want to integrate technology which potentially could be fundamentally flawed?

“IBM has led the industry and has driven the establishment of values ​​such as trust and transparency in the development of new AI technologies,” said David Kenny, SVP of Cognitive Solutions at IBM. “It is time to bring these values ​​to the table. We are providing companies that use AI with greater transparency and control to face the potential risk of erroneous decision-making.”

Research from the Rand Corporation, a paper entitled ‘An Intelligence in Our Image’, assesses some of the risks associated with bias. While some might be small and non-impactful, errant algorithms in infrastructure, defence systems, or financial markets could cause some pretty significant damage on a global scale. It of course all depends on the purpose of the AI application, though incomplete data, sub-conscious bias from the human programmer or applying the application to a process or situation it was not perfectly designed for could all influence the technology. In short, there are a lot of things which could go wrong with this embryonic technology.

According to the paper, as the breadth and depth of data increases, the demand to make use of insight increases. There is pressure to create more complex algorithms to create value out of the information, though this might be compounding the problem. Some might suggest it is not a good idea to move onto more complex AI applications when the basic ones have not been mastered just yet.

The simple answer is not to use it, though this is not a feasible solution. Other ideas include conducting regular audits of the algorithms and/or provide more transparency on how the decision making process works. Unfortunately due to the increasingly complex nature of artificial intelligence, offering transparency (the perfect solution) is a pretty useless path to travel. The general public, or even the organizations implementing the technology, will not understand it. In a recent IBM survey, 63% of respondents said they lack the capabilities and internal talent to manage this technology with confidence.

Companies like IBM, Google and Amazon have been doing wonderful things to democratise AI, though this is part of the problem. In increasing the accessibility of AI, these companies are allowing organizations to use the technology without understanding it. These companies are ‘standing on the shoulders of giants’, though they are helpless to identify when there is an issue with the bedrock technology as they had no hand in developing it.

IBM’s answer here is to offer AI which can detect error and bias in other AI technologies. The software service can also be programmed to monitor the specific decision factors that are taken into consideration for any business workflow. It effectively monitors the decision making processes in real-time, and captures potentially unfair results as they occur. The software will identify what factors made the decision tilt to one side or the other, confidence in the recommendation and the factors behind that confidence.

But here is the catch, is it sensible to identify errors in potentially faulty algorithms, with another algorithm? Who is to say there is not fault or bias in the detection software, and what compounded issue could this cause?