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Now Available: Market Milestone: Vena Solutions Raises $115 Million to Support Mid-Market FP&A

On January 9th, 2019, Vena Solutions announced a $115 million round of equity financing led by JMI Equity and joined by prior investor Centana Growth Partners. Based on Amalgam Insights’ discussions with Vena’s executive team, this funding will be used to expand Vena’s product, customer support, sales, marketing, and operations teams as well as to expand the customer base in the mid-market, where Vena has been successfully winning business over the past several years.

Amalgam Insights’ Market Milestones highlight and contextualize key announcements in enterprise technology markets. This Market Milestone provides guidance on why this funding round is an important milestone for mid-market FP&A in context of the red-hot FP&A market as well as important trends in Enterprise Performance Management product development and venture capital investment. To access Amalgam Insights’ perspective at no cost until Friday, January 19th, click through to read our perspective on this important milestone.

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Tom Petrocelli to Appear on DM Radio to Discuss Containers and Hybrid Cloud

On January 24, 2019 at 3 PM Eastern, Amalgam Insights’ DevOps and Open Source Research Fellow, Tom Petrocelli will be sharing his perspectives on the importance of containers in multi-cloud management on the DM Radio episode Contain Yourself? The Key to Hybrid Cloud

This episode will be hosted by Eric Kavanagh, CEO of The Bloor Group and Petrocelli will be accompanied by Samuel Holcman of the Pinnacle Business Group and Pakshi Rajan of Paxata.

Don’t miss this opportunity to get Tom Petrocelli’s guidance and wisdom on the current state of containers and cloud management!

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CES 2019 Ramifications for Enterprise IT

Vendors and Organizations Mentioned: IBM, Ose, WindRiver, Velodyne, UV Partners, TDK Corporation, Chirp Microsystems, Qualcomm, Intel, Zigbee Alliance, Thread Group, Impossible Foods

The CES (Consumer Electronics Show) is traditionally known as the center of consumer technology. Run by the CTA (Consumer Technology Association) in Las Vegas, this show brings out enormous volumes of new technology ranging from smart cars to smart homes to smart sports equipment to smart… well, you get the picture. But within all of these announcements, there were also a number of important announcements that affect the enterprise IT world and the definition of IT that will be important for tech professionals to think about in 2019. Amalgam Insights went through hundreds of different technology press releases and announcements to find the most important announcements that will affect your professional career.

Come along with me as we look at Quantum Computing, Gender Equality, Autonomous Vehicles, Disinfected Smartphones, Low Power Virtual Reality, Neural Net Chips, Internet of Things Interoperability, and, yes, the Impossible Burger.

Quantum Computing

On January 8th, 2019, IBM announced IBM Q System One, the “first integrated universal approximate quantum computing system” designed for commercial use. From a practical perspective, this will allow R&D departments to actually have their own quantum computers. Today, the vast majority of quantum computing work is done based on remote access either to quantum computers or quantum computing emulators, which provide limits on the experimenters’ abilities to customize and configure their computing environments.

To create a quantum computing system, IBM had to bring together hardware that provided high-quality and low-error rate qubits, cryogenic equipment to cool the hardware and quantum activity, as well as the electronics, firmware, and traditional computing capabilities needed to support a quantum environment. Of course, IBM is not new to quantum computing and has been a market leader in this emerging category.

Quantum computing fundamentally matters because we are running up against the physical limits of material science that allow microprocessors to get smaller and faster, which we typically sum up as Moore’s Law. In addition, quantum computing potentially allows both for more secure encryption or the ability to quickly decrypt extremely secure technologies, depending on whether one takes a white-hat or black-hat approach. But the ramifications mean that it is important for security organizations to both start understanding quantum computing and to either stay ahead of black-hat quantum computing efforts or provide white-hat security answers to stay ahead.

Gender Equality at CES

At CES, a woman-designed sex toy originally given an innovation award (Warning: may not be Safe For Work) had its award revoked. The Ose vibrator designed by Lora DiCarlo was entered in the robotics and drone category based on its design by a robotics lab at Oregon State University and eight patents pending for a variety of robotic and biomimicry capabilities.

The product was undoubtedly risque. But CES has previously allowed virtual reality pornography to be shown within the show as well as other anatomical simulations designed for sex.

Given CES’ historical standards for other exhibitors to present similar products and objects, the revoking of this award looks biased. This is an important lesson that the answer to providing a gender-equal environment is not necessarily to simply remove all sexual content. The goal is to eliminate harassment and abuse while providing equal opportunity across gender. As long as sex is a part of consumer technology, CES needs to provide equal opportunity for all genders to present.

Autonomous Vehicles

There were a number of announcements associated with Lidar sensors and edge computing innovations. Two that got Amalgam Insights’ attention included:

WindRiver’s integration of its Chassis automotive software with its TitaniumCloud virtualization software. This announcement hints at the need for the car, as computing system, to be integrated with the cloud. This integration will be important as car manufacturers seek to upgrade car capabilities. As we continue to think about the car both as an autonomous data center of its own and set of computing and processing workloads that need to be upgraded on a regular basis, we will need to consider how the operational technologies associated with autonomous vehicles and other “Things” integrate with carrier-grade and public clouds.

Velodyne announced an end-to-end Lidar solution that includes both a hemisphere Lidar sensor called VelaDome as well as its Velia software. This launch reflects the need for hardware components and software to be integrated in the vehicle world, just as it is in the appliances and virtual machines we often use in the world of IT. This is another data point showing how autonomous vehicles are coming closer to our world of IT both in creating integrated solutions and in requiring IT-like support in the future.

Disinfected Smartphones

UV Partners announced a new product called the UV Angel Aura Clean & Charge, which combines both wireless charging with ultraviolet light disinfection. This product matters because, quite frankly, mobile phones tend to be filthy. That’s what happens when people are holding them for hours a day and rarely wash or disinfect the phones. So, this device will be useful for germophobes.

But there is also the practical aspect of being able to clean phone surfaces with this object more easily. This may lead to being able to use the phone to detect biological matter or changes more effectively without additional dirt and biocontaminants. This could make phones or other sensors more accurate in trying to detect trace elements or compounds and increase the functionality of both phones and “Things” as a result.

Low Power Virtual Reality

TDK Corporation announced its work with Qualcomm through the group company of Chirp Microsystems to improve controller tracking for mobile virtual reality and augmented reality headsets (). Most importantly, the tracking system used for these devices is only several miiliwatts, which is a small fraction of the total power within a standard smartphone battery. This compares to several hundred milliwatts for a standard optical tracking system. With this primary technology in development, both AR and VR experiences become more usable simply because they will take significantly less power to support.

This change may not sound exciting, but Amalgam Insights believes that one of the key challenges to the adoption of AR and VR is simply the battery life needed to use these applications for any extended amount of time. This breakthrough could significantly extend the life of AR and VR apps.

Artificial Intelligence

Intel made a number of chip announcements. Amalgam Insights is not a hardware analyst firm, so most of the mobile and laptop-based announcements are beyond our coverage. But the announcement that got our attention was the Intel Nervana Neural Network Processor. This chip, developed with Facebook, is developed to accelerate the detection of inference associated with the algorithmic processing of neural nets and will drive higher performance machine learning and artificial intelligence efforts.

At a time when every chip player is trying to get ahead with GPUs and TPUs, Intel is making its mark by focusing on the detection of iterative inference, which is a necessary part of the “intelligence” of AI. Amalgam Insights looks forward to seeing how the Nervana processor is made available for commercial use and as a cloud-based capability for the enterprise world.

Internet of Things Interoperability

The Zigbee Alliance and Thread Group announced completing the Dotdot 1.0 specification, which will improve interoperability across smart home devices and networks made by different vendors. By providing a standard application layer that works across a wide variety of vendors and works on an IP networking standard, Dotdot brings a level of standardization to application-level configuration, testing, and certification.

This standard is an important step forward for companies working on Smart Home devices or related Smart Office devices and seeking a common way to ensure that new devices will be able to communicate with existing device investments. Amalgam Insights looks forward to seeing how this standard revolutionizes Smart Buildings and the Future of Work.

And, the Impossible Burger

The belle of the ball, so to speak, at CES was the Impossible Burger 2.0, a soy-based protein held together by heme with iron and protein content similar to beef.

So, this is very cool, but why is this relevant to IT? First, this burger reminds us that food is now tech. Think about both how interesting and weird this is. A company has made custom proteins to build a new type of food designed to replace the taste and role of beef. Or at least that’s where they are today.

Meanwhile in the IT world, identity is increasingly based on biometrics: eyes, fingerprints, facial recognition. It is only a matter of time before either protein or DNA profiles are added to this mix. There will undoubtedly be some controversies and hiccups as this happens, but it is almost inevitable given the types of sensors we have and the evolution of DNA technologies like CRISPR that rapidly sequence and cut up DNA.

So, as we get better at replicating the nutrition and texture of meat with plant-based proteins at the same time that our physical bodies are increasingly used to provide access to our accounts… yes, this gets weird. But we’re probably five-to-ten years away from being hacked by some combination of these technbologies as the DNA, protein, and biometric worlds keep coming closer and closer together.

For now, this is just cool to watch. And the Impossible Burger 2.0 sounds like a great vegan alternative to a burger. But putting the pieces together, identity in 2030 is going to be extremely difficult to manage.

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Market Milestone: Tidelift Raises $25 Million B Round to Improve Open Source Business Models


Key Stakeholders: CIO, Enterprise Strategists, Enterprise Architects, Software Asset Managers, Software Developers, Open Source Maintainers

Why It Matters: Open Source is an increasingly important part of the enterprise software portfolio and yet the support, maintenance, and contributions to open source projects are often haphazard, risky, and poorly funded. Tidelift provides a channel to allow organizations and enterprises to effectively fund the founders and maintainers of strategically important open source projects.

Key Takeaway: With this round of funding, Tidelift is well positioned to continue supporting the mission of supporting open source developers through the Tidelift Subscription of security, maintenance, and licensing commitments, through 2019 and beyond.

On January 7, 2019, Tidelift, an Open Source subscription and maintenance company, raised a $25 million Series B round co-led by General Catalyst, Foundry Group, and former Red Hat executive Matthew Szulik. This round came only seven months after an initial $15 million A round and will be used to help Tidelift continue to support Open Source developers, creators, and maintainers seeking financial support so that they can focus on the Open Source projects and packages that they work on with a professional level of support.

Continue reading Market Milestone: Tidelift Raises $25 Million B Round to Improve Open Source Business Models

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Tangoe Acquires MOBI – Part IV: Market Considerations and Conclusion

Note: if you missed Part III of this blog series, catch up and read Part III: Enterprise Considerations

This is part of a four-blog series exploring Tangoe’s acquisition of MOBI.
Part I: Context for the Acquisition
Part II: Why?
Part III: Enterprise Considerations
Part IV: Market Considerations and Conclusion

Industries: Enterprise Mobility Management, Technology Expense Management

Key Stakeholders: CIO, CFO, Chief Digital Officer, Chief Technology Officer, Chief Mobility Officer, Mobility Directors and Managers, Procurement Directors and Managers, Accounting Directors and Managers

Why It Matters: Tangoe is the largest technology expense management vendor. By purchasing MOBI, Tangoe gains Managed Mobility expertise, a customer base with high customer satisfaction, and expertise in Robotic Process Automation to support enterprise mobility.

Top Takeaway: Tangoe continues to aggressively acquire market leaders both to increase market share and add Best-in-Breed capabilities, personnel, and technology to its technology management portfolio.

Tangoe Acquires MOBI

On December 5th, 2018, Tangoe announced the acquisition of MOBI, a leading managed mobility services organization based in Indianapolis, Indiana in the United States. With this acquisition, Tangoe increases its IT spend under management to over $40 billion, increasing its lead over other spend management vendors with multiple billions of dollars of enterprise technology under management including Flexera, Snow Software, Microsoft Azure Cost Management, CloudHealth by VMware, Calero, MDSL, Cass Information Systems, and Sakon.

Market Considerations Continue reading Tangoe Acquires MOBI – Part IV: Market Considerations and Conclusion

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Tangoe Acquires MOBI – Part III: Enterprise Considerations

Note: if you missed Part II of this blog series, catch up and read Part II: Why?

This is part of a four-blog series exploring Tangoe’s acquisition of MOBI.
Part I: Context for the Acquisition
Part II: Why?
Part III: Enterprise Considerations
Part IV: Market Considerations and Conclusion

 

Industries: Enterprise Mobility Management, Technology Expense Management

Key Stakeholders: CIO, CFO, Chief Digital Officer, Chief Technology Officer, Chief Mobility Officer, Mobility Directors and Managers, Procurement Directors and Managers, Accounting Directors and Managers

Why It Matters: Tangoe is the largest technology expense management vendor. By purchasing MOBI, Tangoe gains Managed Mobility expertise, a customer base with high customer satisfaction, and expertise in Robotic Process Automation to support enterprise mobility.

Top Takeaway: Tangoe continues to aggressively acquire market leaders both to increase market share and add Best-in-Breed capabilities, personnel, and technology to its technology management portfolio.

Tangoe Acquires MOBI

On December 5th, 2018, Tangoe announced the acquisition of MOBI, a leading managed mobility services organization based in Indianapolis, Indiana in the United States. With this acquisition, Tangoe increases its IT spend under management to over $40 billion, increasing its lead over other spend management vendors with multiple billions of dollars of enterprise technology under management including Flexera, Snow Software, Microsoft Azure Cost Management, CloudHealth by VMware, Calero, MDSL, Cass Information Systems, and Sakon.

Key Questions for customers to keep in mind that have not been answered as of publication: Continue reading Tangoe Acquires MOBI – Part III: Enterprise Considerations

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Tangoe Acquires MOBI – Part II: Why?

Note: if you missed Part I of this blog series, catch up and read Part I: Context for the Acquisition

This is part of a four-blog series exploring Tangoe’s acquisition of MOBI.
Part I: Context for the Acquisition
Part II: Why?
Part III: Enterprise Considerations
Part IV: Market Considerations and Conclusion

Industries: Enterprise Mobility Management, Technology Expense Management

Key Stakeholders: CIO, CFO, Chief Digital Officer, Chief Technology Officer, Chief Mobility Officer, Mobility Directors and Managers, Procurement Directors and Managers, Accounting Directors and Managers

Why It Matters: Tangoe is the largest technology expense management vendor. By purchasing MOBI, Tangoe gains Managed Mobility expertise, a customer base with high customer satisfaction, and expertise in Robotic Process Automation to support enterprise mobility.

Top Takeaway: Tangoe continues to aggressively acquire market leaders both to increase market share and add Best-in-Breed capabilities, personnel, and technology to its technology management portfolio.

Tangoe Acquires MOBI

On December 5th, 2018, Tangoe announced the acquisition of MOBI, a leading managed mobility services organization based in Indianapolis, Indiana in the United States. With this acquisition, Tangoe increases its IT spend under management to over $40 billion, increasing its lead over other spend management vendors with multiple billions of dollars of enterprise technology under management including Flexera, Snow Software, Microsoft Azure Cost Management, CloudHealth by VMware, Calero, MDSL, Cass Information Systems, and Sakon.

So, Why Did Tangoe Purchase MOBI?

MOBI’s ability to scale as a managed mobility services company and to maintain high levels of customer satisfaction and retention made it an attractive acquisition target.

To understand why, consider that in the startup world, Amalgam Insights notes that companies tend to have new management challenges each time that they expand by 3x. So, for instance, a company that has 30 employees will need to change its management policies to support a 100 employee company, and then again to become a 300 employee company. The experience in managing a company at larger scale is indicative of the ability that the company’s policies will be scalable. So, for instance, customer service policies that have proven to be stable for a 250-300 person company would tend to be easier to maintain than those that exist for a 10-15 person company that may have significant hands-on management that can make up for a lack of policy.

Amalgam Insights believes that this success at scale was an important aspect of Tangoe’s acquisition of MOBI. Tangoe, as a roughly 2,000 employee company, needed to acquire a company of scale to increase its managed mobility capabilities and to bring in a team of strong customer service and managed mobility professionals who already understood the demands of enterprise IT. With MOBI, Tangoe was able to bring in a top vendor to drive Tangoe’s expansion of managed mobility services and know that the policies in place would work for both a large number of employees and clients.

Tangoe also acquired MOBI’s significant investments both in their platform as well as in robotic process automation. At MOBI Untethered 2017, MOBI introduced their Mobots, a series of robotic process automation tools used to support service desk, service orders, carrier logistics, and billing data use cases. Amalgam Insights believes that these “Mobots” will end up being a significant advantage in scaling service reach, automating carrier interactions, and accelerating answers for support requests.

With this acquisition, Indianapolis now becomes the center of Tangoe’s Managed Mobility Services efforts. Although Tangoe has a significant facility in Austin, Amalgam Insights expects that increased growth in Tangoe Managed Mobility Services will lead to investment in Indianapolis. This is important both because Indianapolis is a growing tech hub in the United States and because MOBI had already negotiated tax incentives in return for job growth. As Tangoe’s Managed Mobility Services increase in size over the next few years, this benefit could be a true win-win for both Tangoe and Indianapolis.

MOBI’s experience in device logistics will be valuable to Tangoe both in providing additional capacity to manage mobile devices as well as to support Tangoe’s existing managed mobility team which is largely located in Austin, Texas. In December of 2016, Tangoe had announced a significant expansion of its Austin facilities to support device refreshes, repairs, and customization. With this additional investment in device logistics, Tangoe increases its throughput for handling large enterprise mobility projects.

One aspect of this acquisition that may help MOBI going forward is that Amalgam Insights notes that MOBI has lost deals in the past due to their inability to support landline and network environments. However, as a part of Tangoe, MOBI no longer has this problem as Tangoe’s Managed Mobility Services arm. Tangoe’s long-term DNA is based on telecom and network expense management and the breadth of Tangoe’s enterprise deployments will provide expertise and support for all enterprise technologies that are peripheral or related to enterprise mobility.

Amalgam Insights also notes that MOBI was also taking on the challenge of going down-market in conjunction with its automation efforts. With the Tangoe acquisition, Amalgam Insights expects that the ongoing service development efforts of the Tangoe Managed Mobility Services team led by the MOBI team will focus more on the complexity of enterprise mobility efforts, a challenge well-suited to MOBI’s automation and service capabilities.

In Part III of this blog series, we will explore enterprise considerations for Tangoe and MOBI’s current and potential customers. Or, to read the entire report and acquire inquiry time with the analyst to better understand this acquisition from your organization’s perspective, purchase the report at the following link: https://www.amalgaminsights.com/product/amalgam-insights-market-milestone-tangoe-acquires-mobi-to-enhance-mobility-management-capabilities/

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Tangoe Acquires MOBI – Part I: Context for the Acquisition

Industries: Enterprise Mobility Management, Technology Expense Management

Key Stakeholders: CIO, CFO, Chief Digital Officer, Chief Technology Officer, Chief Mobility Officer, Mobility Directors and Managers, Procurement Directors and Managers, Accounting Directors and Managers

Why It Matters: Tangoe is the largest technology expense management vendor. By purchasing MOBI, Tangoe gains Managed Mobility expertise, a customer base with high customer satisfaction, and expertise in Robotic Process Automation to support enterprise mobility.

Top Takeaway: Tangoe continues to aggressively acquire market leaders both to increase market share and add Best-in-Breed capabilities, personnel, and technology to its technology management portfolio.

Note: This is part of a four-blog series exploring Tangoe’s acquisition of MOBI.
Part I: Context for the Acquisition
Part II: Why?
Part III: Enterprise Considerations
Part IV: Market Considerations and Conclusion

On December 5th, 2018, Tangoe announced the acquisition of MOBI, a leading managed mobility services organization based in Indianapolis, Indiana in the United States. With this acquisition, Tangoe increases its IT spend under management to over $40 billion, increasing its lead over other spend management vendors with multiple billions of dollars of enterprise technology under management including Flexera, Snow Software, Microsoft Azure Cost Management, CloudHealth by VMware, Calero, MDSL, Cass Information Systems, and Sakon. Continue reading Tangoe Acquires MOBI – Part I: Context for the Acquisition

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The View from KubeCon+CloudNativeCon – Containers and Kubernetes Become Enterprise Ready

In case there was any doubt about the direction containers and Kubernetes are going, KubeCon+CloudNativeCon 2018 in Seattle should have dispelled them. The path is clear – technology is maturing and keeps adding more features that make it conducive to mission-critical, enterprise applications. From the very first day, the talk was about service meshes and network functions, logging and traceability, and storage and serverless compute. These are couplets that define the next generation of management, visibility, and core capabilities of a modern distributed application. On top of that is emerging security projects such as SPIFFE & SPIRE, TUF, Falco, and Notary. Management, visibility, growth in core functionality, and security. All of these are critical to making container platforms enterprise ready.

“The future of containers and Kubernetes as the base of the new stack was on display at KubeCon+CloudNativeCon and it’s a bright one.

Tom Petrocelli, Research Fellow, Amalgam Insights”

If the scope of KubeCon+CloudNativeCon and the Cloud Native Computing Foundation (CNCF) is any indication, the ecosystem is also growing. This year there were 8000 people at the conference – a sellout. The CNCF has grown to 300+ vendor members there are 46,000 contributors to its projects. That’s a lot of growth compared to just a few years ago. This many people don’t flock to sinking projects. Continue reading The View from KubeCon+CloudNativeCon – Containers and Kubernetes Become Enterprise Ready

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Amazon Expands Toolkit of Machine Learning Services at AWS re:Invent

At AWS re:Invent, Amazon Web Services expanded its toolkit of machine learning application services with the announcements of Amazon Comprehend Medical, Amazon Forecast, Amazon Personalize, and Amazon Textract. These new services augment the capabilities Amazon provides to end users when it comes to text analysis, personalized recommendations, and time series forecasts. The continued growth of these individual services removes obstacles for companies looking to get started with common machine learning tasks on a smaller scale; rather than building a wholesale data science pipeline in-house, these services allow companies to quickly get one task done, and this permits an incremental introduction to machine learning for a given organization. Forecast, Personalize, and Textract are in preview, while Comprehend Medical is available now.

Amazon Comprehend Medical, Forecast, Personalize, and Textract join a collection of machine learning services that include speech recognition (Transcribe) and translation (Translate), speech-to-text and text-to-speech (Lex and Polly) to power machine conversation such as chatbots and Alexa, general text analytics (Comprehend), and image and video analysis (Rekognition).

New Capabilities

Amazon Personalize lets developers add personalized recommendations into their apps, based on a given activity stream from that app and a corpus of what’s available to be recommended, whether that’s products, articles, or other things. In addition to recommendations, Personalize can also be used to customize search results and notifications. By combining a given search string or location with contextual behavior data, Amazon looks to provide customers with the ability to build trust.

Amazon Forecast builds private, custom time-series forecast models that predict future trends based on that data. Customers provide both histoical data and related causal data, and Forecast analyzes the data to determine the relevant factors in building its models and providing forecasts.

Amazon Textract extracts text and data from scanned documents, without requiring manual data entry or custom code. In particular, using machine learning to recognize when data is in a table or form field and treat it appropriately will save a significant amount of time over the current OCR standard.

Finally, Amazon Comprehend Medical, an extension of last year’s Amazon Comprehend, uses natural language processing to analyze unstructured medical text such as doctor’s notes or clinical trial records, and extract relevant information from this text.

Recommendations

Organizations doing resource planning, financial planning, or other similar forecasting that currently lack the capability to do time series forecasting in-house should consider using Amazon Forecast to predict product demand, staffing levels, inventory levels, material availability, and to perform financial forecasting. Outsourcing the need to build complex forecasting models in-house lets departments focus on the predictions.

Consumer-oriented organizations looking to build higher levels of engagement with their customers who provide generic, uncontextualized recommendations right now (based on popularity or other simple measures) should consider using Amazon Personalize to provide personalized recommendations, search results, and notifications via their apps and website. Providing high-quality relevant recommendations a la minute builds customer trust in the quality of a given organization’s engagement efforts, particularly compared to the average spray-and-pray marketing communication.

Organizations that still depend on physical documents, or who have an archive of physical documents to scan and analyze, should consider using Amazon Textract. OCR’s limits are well-known, especially when it comes to accurately interpreting and formatting semi-structured blocks of text data such as form fields and tables, resulting in significant time devoted to post-processing manual correction. Textract handles complex documents without the need for custom code or maintaining templates; being able to automate text interpretation and analysis further accelerates document processing workflows, and better permits organizations to maintain compliance.

Medical organizations using software that depends on manually-implemented rules to process their medical text should consider using Amazon Comprehend Medical. By removing the need to maintain a list of rules in-house, Comprehend Medical accelerates the ability to extract and analyze medical information from unstructured text fields like doctor’s notes and health records, improving processes such as medical coding, cohort analysis to recruit patients for clinical trials, and health monitoring of patients.

All organizations looking to use machine learning services from external providers need to consider whether outsourcing will work for their circumstances. Data privacy is a key concern, and even more so in regulated verticals with industry-specific rules such as HIPAA. Does the service you want to use respect those rules? From a compliance perspective, why a model gives the results it does needs to be explained as well; merely accepting results from the black box at face value is insufficient. Machine learning products that automatically provide such an explanation in plain English do exist, but this feature is still uncommon and in its infancy.

Conclusion

With its latest announcements, Amazon continues to broaden the scope of customer issues it addresses with machine learning services. Medical companies need better text analytics yesterday, but struggle to comply with HIPAA while assessing the data they have. Customer-facing organizations face stiff competition when their competitor is only a click away. And any company trying to plan for the future based on past data grapples with understanding what factors affect future results. Amazon’s machine learning application services address common tactical business issues by simplifying the process for customers of implementing task-specific machine learning models to pure inputs and outputs. These services present outsourcing opportunities for overworked departments struggling to keep up.