Dust Identity secures $10M Series A to identify objects with diamond dust

Source: Tech News – Enterprise

The idea behind Dust Identity was originally born in an MIT lab where students developed a system of uniquely identifying objects using diamond dust. Since then, the startup has been working to create a commercial application for the advanced technology, and today it announced a $10 million Series A round led by Kleiner Perkins, which also led its $2.3 million seed round last year.

Airbus Ventures and Lockheed Martin Ventures, New Science Ventures, Angular Ventures and Castle Island Ventures also participated in the round. Today’s investment brings the total raised to $12.3 million.

The company has an unusual idea of applying a thin layer of diamond dust to an object with the goal of proving that object has not been tampered with. While using diamond dust may sound expensive, the company told TechCrunch last year at the time of its seed round funding that it uses low-cost industrial diamond waste, rather than the expensive variety you find in jewelry stores.

As CEO and co-founder Ophir Gaathon told TechCrunch last year, “Once the diamonds fall on the surface of a polymer epoxy, and that polymer cures, the diamonds are fixed in their position, fixed in their orientation, and it’s actually the orientation of those diamonds that we developed a technology that allows us to read those angles very quickly.”

Ilya Fushman, who is leading the investment for Kleiner, says the company is offering a unique approach to identity and security for objects. “At a time when there is a growing trust gap between manufacturers and suppliers, Dust Identity’s diamond particle tag provides a better solution for product authentication and supply chain security than existing technologies,” he said in a statement.

The presence of strategic investors Airbus and Lockheed Martin shows that big industrial companies see a need for advanced technology like this in the supply chain. It’s worth noting that the company partnered with enterprise computing giant SAP last year to provide a blockchain interface for physical objects, where they store the Dust Identity identifier on the blockchain. Although, the startup has a relationship with SAP, it remains blockchain agnostic, according to a company spokesperson.

While it’s still early days for the company, it has attracted the attention from a broad range of investors and intends to use the funding to continue building and expanding the product in the coming year. To this point, it has implemented pilot programs and early deployments across a range of industries including automotive, luxury goods, cosmetics and oil, gas and utilities


Dust Identity secures M Series A to identify objects with diamond dust

Judge dismisses Oracle lawsuit over $10B Pentagon JEDI cloud contract

Source: Tech News – Enterprise

Oracle has been complaining about the procurement process around the Pentagon’s $10 billion, decade-long JEDI cloud contract, even before the DoD opened requests for proposals last year. It went so far as to file a lawsuit in December, claiming a potential conflict of interest on the part of a procurement team member. Today, that case was dismissed in federal court.

In dismissing the case, Federal Claims Court Senior Judge Eric Bruggink ruled that the company had failed to prove a conflict in the procurement process, something the DOD’s own internal audits found in two separate investigations. Judge Bruggink ultimately agreed with the DoD’s findings.

“We conclude as well that the contracting officer’s findings that an organizational conflict of interest does not exist and that individual conflicts of interest did not impact the procurement, were not arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law. Plaintiff’s motion for judgment on the administrative record is therefore denied,” Judge Bruggink wrote in his order.

The company previously had filed a failed protest with the Government Accountability Office (GAO), which also ruled that the procurement process was fair and didn’t favor any particular vendor. Oracle had claimed that the process was designed to favor cloud market leader AWS.

It’s worth noting that the employee in question was a former AWS employee. AWS joined the lawsuit as part of the legal process, stating at the time in the legal motion, “Oracle’s Complaint specifically alleges conflicts of interest involving AWS. Thus, AWS has direct and substantial economic interests at stake in this case, and its disposition clearly could impair those interests.”

Today’s ruling opens the door for the announcement of a winner of the $10 billion contract, as early as next month. The DoD previously announced that it had chosen Microsoft and Amazon as the two finalists for the winner-take-all bid.


Judge dismisses Oracle lawsuit over B Pentagon JEDI cloud contract

Judge dismisses Oracle lawsuit over $10B Pentagon JEDI cloud contract

Source: Microsoft more

Oracle has been complaining about the procurement process around the Pentagon’s $10 billion, decade-long JEDI cloud contract, even before the DoD opened requests for proposals last year. It went so far as to file a lawsuit in December, claiming a potential conflict of interest on the part of a procurement team member. Today, that case was dismissed in federal court.

In dismissing the case, Federal Claims Court Senior Judge Eric Bruggink ruled that the company had failed to prove a conflict in the procurement process, something the DOD’s own internal audits found in two separate investigations. Judge Bruggink ultimately agreed with the DoD’s findings.

“We conclude as well that the contracting officer’s findings that an organizational conflict of interest does not exist and that individual conflicts of interest did not impact the procurement, were not arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law. Plaintiff’s motion for judgment on the administrative record is therefore denied,” Judge Bruggink wrote in his order.

The company previously had filed a failed protest with the Government Accountability Office (GAO), which also ruled that the procurement process was fair and didn’t favor any particular vendor. Oracle had claimed that the process was designed to favor cloud market leader AWS.

It’s worth noting that the employee in question was a former AWS employee. AWS joined the lawsuit as part of the legal process, stating at the time in the legal motion, “Oracle’s Complaint specifically alleges conflicts of interest involving AWS. Thus, AWS has direct and substantial economic interests at stake in this case, and its disposition clearly could impair those interests.”

Today’s ruling opens the door for the announcement of a winner of the $10 billion contract, as early as next month. The DoD previously announced that it had chosen Microsoft and Amazon as the two finalists for the winner-take-all bid.


Judge dismisses Oracle lawsuit over B Pentagon JEDI cloud contract

With $34B Red Hat deal closed, IBM needs to execute now

Source: Tech News – Enterprise

In a summer surprise this week, IBM announced it had closed its $34 billion blockbuster deal to acquire Red Hat. The deal, which was announced in October, was expected to take a year to clear all of the regulatory hurdles, but U.S. and EU regulators moved surprisingly quickly. For IBM, the future starts now, and it needs to find a way to ensure that this works.

There are always going to be layers of complexity in a deal of this scope, as IBM moves to incorporate Red Hat into its product family quickly and get the company moving. It’s never easy combining two large organizations, but with IBM mired in single-digit cloud market share and years of sluggish growth, it is hoping that Red Hat will give it a strong hybrid cloud story that can help begin to alter its recent fortunes.

As Box CEO (and IBM partner) Aaron Levie tweeted at the time the deal was announced, “Transformation requires big bets, and this is a good one.” While the deal is very much about transformation, we won’t know for some time if it’s a good one.

Transformation blues

Synergy Research finds enterprise SaaS revenue hits $100B run rate, led by Microsoft, Salesforce

Source: Tech News – Enterprise

In its most recent report, Synergy Research, a company that monitors cloud marketshare, found that enterprise SaaS revenue passed the $100 billion run rate this quarter. The market was led by Microsoft and Salesforce.

It shouldn’t be a surprise at this point that these two enterprise powerhouses come in at the top. Microsoft reported $10.1 billion in Productivity and Business Processes revenue, which includes Office 365, the Dynamics line and LinkedIn, the company it bought in 2016 for $26.2 billion. That $10.1 billion accounted for top spot with 17 percent

Salesforce was next with around 12 percent. It announced $3.74 billion in revenue in its most recent earnings statement with Service Cloud alone accounting for $1.02 billion in revenue, crossing that billion dollar mark for the first time.

Adobe came in third, good for around 10 percent market share, with $2.74 billion in revenue for its most recent report. Digital Media, which includes Creative Cloud and Document Cloud, accounted for the vast majority of the revenue with $1.8 billion. SAP and Oracle complete the top companies

SaaS Q119

A growing market

While that number may seem low, given we are 20 years into the development of the SaaS market, it is still a significant milestone, not to be dismissed lightly. As Synergy pointed out, while the market feels mature, if finds that SaaS revenue still accounts for just 20 percent of the overall enterprise software market. There’s still a long way to go, showing as with the infrastructure side of the market, things change much more slowly than we imagine, and the market is growing rapidly, as the impressive growth rates show.

“While SaaS growth rate isn’t as high as IaaS (Infrastructure as a Service) and PaaS (Platform as a Service), the SaaS market is substantially bigger and it will remain so until 2023. Synergy forecasts strong growth across all SaaS segments and all geographic regions,” the company wrote in its report.

Salesforce is the only one of the top five that was actually born in the cloud. Adobe, an early desktop software company, switched to cloud in 2013. Microsoft, of course, has been a desktop stalwart for many years before embracing the cloud over the last decade. SAP and Oracle are traditional enterprise software companies, born long before the cloud was even a concept, that began transitioning when the market began shifting.

Getting to a billion

Yet in spite of being late to the game, these numbers show that the market is still dominated by the old guard enterprise software companies and how difficult it is to achieve market dominance for companies born in the cloud. Salesforce emerged 20 years ago as an early cloud adherent, but of all of the enterprise SaaS companies that were started this century only ServiceNow and WorkDay show up in the Synergy list lumped in “the next 10.”

That’s not to say there aren’t SaaS companies making some serious money, just not quite as much as the top players to this point. Jason Lemkin, CEO and founder at SaaStr, a company that invests in and supports enterprise SaaS companies, says a lot of companies are close to that $1 billion goal than you might think, and he’s optimistic that we are going to see more.

“We will have at least 100 companies top $1 billion in ARR, probably many more. It is just math. Almost everyone IPO’ing [SaaS company] has 120-140% revenue retention. That will compound $100 million or $200 million to $1 billion. The only question is when,” he told TechCrunch.

SaaS revenue numbers by company

Chart courtesy of SaasStr

He adds, that annualized numbers are very close behind ARR numbers and it won’t take long to catch up. Yet as we have seen with some of the companies on this list, it’s still not easy to get there.

It’s hard to develop a billion dollar SaaS company, and it takes time and patience, and perhaps some strategic acquisitions to get there, but the market trajectory continues to move upward. It will likely only grow stronger as more companies move to software in the cloud, and that bodes well for many of the players in this market, even those that didn’t show up on Synergy’s chart.


Synergy Research finds enterprise SaaS revenue hits 0B run rate, led by Microsoft, Salesforce

Synergy Research finds enterprise SaaS revenue hits $100B run rate, led by Microsoft, Salesforce

Source: Microsoft more

In its most recent report, Synergy Research, a company that monitors cloud marketshare, found that enterprise SaaS revenue passed the $100 billion run rate this quarter. The market was led by Microsoft and Salesforce.

It shouldn’t be a surprise at this point that these two enterprise powerhouses come in at the top. Microsoft reported $10.1 billion in Productivity and Business Processes revenue, which includes Office 365, the Dynamics line and LinkedIn, the company it bought in 2016 for $26.2 billion. That $10.1 billion accounted for top spot with 17 percent

Salesforce was next with around 12 percent. It announced $3.74 billion in revenue in its most recent earnings statement with Service Cloud alone accounting for $1.02 billion in revenue, crossing that billion dollar mark for the first time.

Adobe came in third, good for around 10 percent market share, with $2.74 billion in revenue for its most recent report. Digital Media, which includes Creative Cloud and Document Cloud, accounted for the vast majority of the revenue with $1.8 billion. SAP and Oracle complete the top companies

SaaS Q119

A growing market

While that number may seem low, given we are 20 years into the development of the SaaS market, it is still a significant milestone, not to be dismissed lightly. As Synergy pointed out, while the market feels mature, if finds that SaaS revenue still accounts for just 20 percent of the overall enterprise software market. There’s still a long way to go, showing as with the infrastructure side of the market, things change much more slowly than we imagine, and the market is growing rapidly, as the impressive growth rates show.

“While SaaS growth rate isn’t as high as IaaS (Infrastructure as a Service) and PaaS (Platform as a Service), the SaaS market is substantially bigger and it will remain so until 2023. Synergy forecasts strong growth across all SaaS segments and all geographic regions,” the company wrote in its report.

Salesforce is the only one of the top five that was actually born in the cloud. Adobe, an early desktop software company, switched to cloud in 2013. Microsoft, of course, has been a desktop stalwart for many years before embracing the cloud over the last decade. SAP and Oracle are traditional enterprise software companies, born long before the cloud was even a concept, that began transitioning when the market began shifting.

Getting to a billion

Yet in spite of being late to the game, these numbers show that the market is still dominated by the old guard enterprise software companies and how difficult it is to achieve market dominance for companies born in the cloud. Salesforce emerged 20 years ago as an early cloud adherent, but of all of the enterprise SaaS companies that were started this century only ServiceNow and WorkDay show up in the Synergy list lumped in “the next 10.”

That’s not to say there aren’t SaaS companies making some serious money, just not quite as much as the top players to this point. Jason Lemkin, CEO and founder at SaaStr, a company that invests in and supports enterprise SaaS companies, says a lot of companies are close to that $1 billion goal than you might think, and he’s optimistic that we are going to see more.

“We will have at least 100 companies top $1 billion in ARR, probably many more. It is just math. Almost everyone IPO’ing [SaaS company] has 120-140% revenue retention. That will compound $100 million or $200 million to $1 billion. The only question is when,” he told TechCrunch.

SaaS revenue numbers by company

Chart courtesy of SaasStr

He adds, that annualized numbers are very close behind ARR numbers and it won’t take long to catch up. Yet as we have seen with some of the companies on this list, it’s still not easy to get there.

It’s hard to develop a billion dollar SaaS company, and it takes time and patience, and perhaps some strategic acquisitions to get there, but the market trajectory continues to move upward. It will likely only grow stronger as more companies move to software in the cloud, and that bodes well for many of the players in this market, even those that didn’t show up on Synergy’s chart.


Synergy Research finds enterprise SaaS revenue hits 0B run rate, led by Microsoft, Salesforce

We’re talking Kubernetes at TC Sessions: Enterprise with Google’s Aparna Sinha and VMware’s Craig McLuckie

Source: Tech News – Enterprise

Over the past five years, Kubernetes has grown from a project inside of Google to an open source powerhouse with an ecosystem of products and services, attracting billions of dollars in venture investment. In fact, we’ve already seen some successful exits, including one from one of our panelists.

On September 5th at TC Sessions: Enterprise, we’re going to be discussing the rise of Kubernetes with two industry veterans. For starters we have Aparna Sinha, director of product management for Kubernetes and the newly announced Anthos product. Sinha was in charge of several early Kubernetes releases and has worked on the Kubernetes team at Google since 2016. Prior to joining Google, she had 15 years experience in enterprise software settings.

Craig McLuckie will also be joining the conversation. He’s one of the original developers of Kubernetes at Google. He went on to found his own Kubernetes startup, Heptio, with Joe Beda, another Google Kubernetes alum. They sold the company to VMware last year for $505 million after raising $33.5 million, according to Crunchbase data.

The two bring a vast reservoir of knowledge and will be discussing the history of Kubernetes, why Google decided to open source it and how it came to grow so quickly. Two other Kubernetes luminaries will be joining them. We’ll have more about them in another post soon.

Kubernetes is a container orchestration engine. Instead of developing large monolithic applications that sit on virtual machines, containers run a small part of the application. As the components get smaller, it requires an orchestration layer to deliver the containers when needed and make them go away when they are not longer required. Kubernetes acts as the orchestra leader.

As Kubernetes, containerization and the cloud-native ethos it encompasses has grown, it has helped drive the enterprise shift to the cloud in general. If you can write your code once, and use it in the cloud or on prem, it means you don’t have to manage applications using different tool sets and that has had broad appeal for enterprises making the shift to the cloud.

TC Sessions: Enterprise (September 5 at San Francisco’s Yerba Buena Center) will take on the big challenges and promise facing enterprise companies today. TechCrunch’s editors will bring to the stage founders and leaders from established and emerging companies to address rising questions, like the promised revolution from machine learning and AI, intelligent marketing automation and the inevitability of the cloud, as well as the outer reaches of technology, like quantum computing and blockchain.

Tickets are now available for purchase on our website at the early-bird rate of $395; student tickets are just $245.

Student tickets are just $245 – grab them here.

We have a limited number of Startup Demo Packages available for $2,000, which includes four tickets to attend the event.

For each ticket purchased for TC Sessions: Enterprise, you will also be registered for a complimentary Expo Only pass to TechCrunch Disrupt SF on October 2-4.


We’re talking Kubernetes at TC Sessions: Enterprise with Google’s Aparna Sinha and VMware’s Craig McLuckie

Amperity update gives customers more control over Customer Data Platform

Source: Tech News – Enterprise

The Customer Data Platform (CDP) has certainly been getting a lot of attention in marketing software circles over the last year as big dawgs like Salesforce and Adobe enter the fray, but Amperity, a Seattle-based startup, has been building a CDP solution since it launched in 2016, and today it announced some updates to give customers more control over the platform.

Chris Jones, chief product officer at Amperity, says this is an important step for the startup. “If you think about the evolution of our company, we started with an idea that turned into a [Marketing Data Platform], which was the engine that powered all of that, but that engine was largely operated by our delivery team. We’re now putting the power of that engine into the customers’ hands and giving them the full access to that,” Jones explained.

That is giving customers — which include Alaska Airlines, Nordstrom and The Gap — the power to control how the software works in the context of their companies, rather than using a black box approach where you have to use the software as delivered. He says that customers want the ability to start using the system to gain insights on their own.

One of the primary pieces in the newest version of Amperity to allow them to do that is Stitch, a tool that lets users pull together all of the interactions from a customer in a single view —  ingesting the data, sorting, deduplicating it and delivering a list of all the interactions a brand has had with a given customer. From there, they can use the new Customer 360 visualization to get a more graphical view of the data.

Amperity Stitch 2019

Amperity Stitch Screenshot: Amperity.

Jones says companies can use this data to help different groups within a company, whether marketing, sales or service, understand the customer better before or during an interaction. For example, a marketer can segment the data in a very granular way to find all of the regular customers who aren’t part of the company loyalty program, and deliver them an email listing all of the benefits of joining.

Amperity launched in 2016, and has raised $37 million across two rounds. Its most recent funding came in 2017, a $28 million investment led by Tiger Global Management, according to Crunchbase data.


Amperity update gives customers more control over Customer Data Platform

Bright Machines wants to put AI-driven automation in every factory

Source: Tech News – Enterprise

There’s a mythology around today’s factories that says everything is automated by robotics, and while there is some truth to that, it’s hard to bring that level of sophistication to every facility, especially those producing relatively small runs. Today, Bright Machines, a San Francisco startup announced its first product designed to put intelligence and automation in reach of every manufacturer, regardless of its size.

The startup, which emerged last fall with $179 million in Series A funding, has a mission to make every aspect of manufacturing run in a software-defined automated fashion. Company CEO Amar Hanspal understands it’s a challenging goal, and today’s announcement is about delivering version 1.0 of that vision.

“We have this ambitious idea to fundamentally change the way factories operate, and what we are all about is to get to autonomous programmable factories,” he said. To start on that journey, since getting its initial funding in October, the company has been building a team that includes manufacturing, software and artificial intelligence expertise. It brought in people from Autodesk, Amazon and Google and opened offices in Seattle and Tel Aviv.

The product it is releasing today is called the Software Defined Microfactory and it consists of hardware and software components that work in tandem. “What the Software Defined Microfactory does is package together robotics, computer vision, machine handling and converged systems in a modular way with hardware that you can plug and play, then the software comes in to instruct the factory on what to build and how to build it,” Hanspal explained.

Obviously, this is not an easy thing to do, and it’s taken a great deal of expertise to pull it together over the last months since the funding. It’s also required having testing partners. “We have about 20 product brands around the world and about 25 production lines in seven countries that have been iterating with us toward version one, what we are releasing today,” Hanspal said.

The company is concentrating on the assembly line for starters, especially when building smaller runs like say a specialized computer board or a network appliance where the manufacturer might produce just 50,000 in total, and could benefit from automation, but couldn’t justify the cost before.

“The idea here is going after the least automated part inside of factory, which is the assembly line, which is typically where people have to throw bodies at the problem and assembly lines have been hard to automate. The operations around assembly typically require human dexterity and judgment, trying to align things or plug things in,” Hanspal said.

The hope is to create a series of templates for different kinds of tooling, where they can get the majority of the way there with the software and robotics, and eventually just have to work on the more customized bits. It is an ambitious goal, and it’s not going to be easy to pull off, but today’s release is a first step.


Bright Machines wants to put AI-driven automation in every factory

Vulcan Cyber announces $10M Series A to automate security patching efforts

Source: Tech News – Enterprise

Many software vulnerabilities are already known, and vendors have even issued patches, but the problem is there are so many patches that it’s often difficult for companies to keep up. Vulcan Cyber wants to help by bringing a level of automation to the patching operation, and in the process reduce exposure to known risks.

Today, it announced a $10 million Series A round from Ten Eleven Ventures and YL Ventures .

In a typical scenario, security researchers find vulnerabilities, the vendors disclose them and patch them. From there it’s up to individual companies to take care of downloading and installing the patch, but Vulcan Cyber co-founder and CEO Yaniv Bar-Dayan says the number of patches has been growing at a furious pace with 6000 patches in 2016, 16,000 in 2017 and 18,000 last year. And that growth trajectory is continuing this year, he says.

Vulcan’s ultimate mission is to help companies remediate security vulnerabilities from their infrastructure. They do this by bringing a level of automation to the process, recognizing that humans can’t keep up with these numbers. “We automate the process of prioritization and deployment to remediate more vulnerabilities faster,” Bar-Dayan explained. What’s more, he said that Vulcan does this without risking business operations, while reducing risk and costs.

Highest risk packages

Vulcan Cyber risk prioritization view. Screenshot: Vulcan Cyber

The company raised a $4 million seed round last year, bringing the total raised to $14 million so far. As TechCrunch’s Frederic Lardinois pointed out while writing about that seed round, it’s able to achieve this level of automation, while working with the tools developers and security teams typically work with anyway.

“Vulcan Cyber plays nicely with all of the major cloud platforms, as well as tools like Puppet, Chef and Ansible, as well as GitHub and Bitbucket. It also integrates with a number of major security testing tools and vulnerability scanners, including Black Duck, Nessus, Fortify, Tripwire, Checkmarx, Rapid7 and Veracode,” Lardinois wrote.

The company was founded last year and has 25 employees. It plans to continue building its engineering team in Israel with the money from this round, as well as opening an office in San Francisco for sales, marketing and customer success.


Vulcan Cyber announces M Series A to automate security patching efforts