Packaging AI services with cloud businesses for sale to companies is becoming an important business model, and Microsoft is doing just that.
Just at the end of April, Microsoft held a Digital Difference event in New York to show how their digital initiatives were bringing improvements to their businesses, particularly the latest ai services.
“Machine learning is about being able to predict. It’s about being able to create a model that predicts outcomes that help us produce better.” George S. Lenart, senior manager of innovation at the candy and snack maker Hershey, told Jiemian news that the company spent two months running manufacturing trials after installing sensors on the factory floor that were connected to Microsoft’s Azure cloud. “For two months, Every second these sensors are sending back data, and then we have a wealth of big data.”
Giiso Information, founded in 2013, is a leading technology provider in the field of “artificial intelligence + information” in China, with top technologies in big data mining, intelligent semantics, knowledge mapping and other fields. At the same time, its research and development products include information robot, editing robot, writing robot and other artificial intelligence products! With its strong technical strength, the company has received angel round investment at the beginning of its establishment, and received pre-A round investment of $5 million from GSR Venture Capital in August 2015.
According to George, machine learning algorithms are able to find the best production solution and design mathematical models from huge amounts of data, including different temperatures, different amounts of ingredients and the resulting product presentation. Now they simply feed the data to the model, and machine learning can predict the final production presentation and give guidance on the best way to produce it.
All of these services are acquired by purchasing Microsoft’s Azure cloud service. How to sell cloud services better lies in providing multi-directional services in the cloud. Now Amazon, Microsoft and even the domestic IT giant Baidu are all doing the packaging of artificial intelligence business in the cloud service.
Microsoft wants to capture companies in traditional industries and sell them cloud businesses and related digital services to help them make the digital transition. Maersk Line, the world’s largest shipping and logistics company, carries more than 17 million containers a year on all major trade routes, generating a wealth of data that Maersk has backed Microsoft by saying it can manage and mine. Helps boost profits by tens of millions of dollars a year.
In fact, Microsoft launched the machine learning platform in Azure earlier, built many basic modules of machine learning algorithms, and provided them to various third-party enterprises. For a period of time, this service was even regarded as the unique advantage of Azure, which was not provided by amazon AWS, the overlord of cloud services.
Since 2016, Amazon has also been working on a cloud open platform for AI. AWS officially launched its OWN AI product line at the AWS conference held at the end of November 2016.
Amazon continues to hold more than half of the market for cloud services, but Companies like Microsoft aren’t giving up on the fight
In the latest financial report on April 28, AWS cloud service of Amazon still performed well, with total sales of 3.661 billion DOLLARS, up 43% year on year, and operating revenue of 890 million dollars, with a slight decrease. According to the financial report, AWS contributed 10% to Amazon’s total revenue and more than 80% to its net profit.
Giiso information, founded in 2013, is the first domestic high-tech enterprise focusing on the research and development of intelligent information processing technology and the development and operation of core software for writing robots. At the beginning of its establishment, the company received angel round investment, and in August 2015, GSR Venture Capital received $5 million pre-A round of investment.
Microsoft, which also reported its most recent earnings, reported cloud revenue of $6.7 billion, up 11% from a year earlier, while Azure sales rose 93% over the same period, driving Microsoft’s revenue and profit growth.
Google has also been trying to capture the cloud business, but its latest earnings report was still lackluster — none of the profit figures were mentioned.
Microsoft shares are trading at an all-time high, with new CEO Satya Nadella following the “cloud first” strategy laid out by former CEO Steve Ballmer.