January 24, 2022
Photo: John Moore/Getty Images
Hello and welcome to Protocol Enterprise! Today: why IBM’s Watson project never worked in health care, why shipping software at a “palatable and realistic” pace is gaining converts and Meta introduces the metaverse machine.
Yeah … They probably had to go in on Saturday. OfficeSpace Software received $150 million in new funding from Vista Equity Partners on Friday that should help it expand and improve its software for companies that need help managing the layout and usage of their physical offices, which means Milton is going to wind up in the basement again.
When IBM announced on Friday that it sold its Watson Health data and analytics products to private equity firm Francisco Partners, it was tough not to see the sale as a failure, the end of IBM’s expensive bet that Watson would be the key tech ushering in health care to the AI age.
Once again, IBM is trying to turn the page. The company announced its fourth quarter 2021 earnings today, with revenue up 6.5% to $16.7 billion, driven mostly by its expensive acquisition of Red Hat in 2018 and its decision to abandon businesses it had once thought crucial to its success, such as its managed infrastructure services division (now Kyndryl) and Watson Health.
The decision to give up on Watson Health was long overdue.
That’s because AI takes time, especially when human health is involved. After a decade of falling revenue, time was not on IBM’s side and health care customers would not be rushed.
IBM said its Watson Health sale is aligned with its “hybrid cloud and AI strategy,” but it stands in stark contrast to Oracle’s recent $28.3 billion acquisition of health data and technology company Cerner.
Everyone wants to IPO—but how do you really get it done, in a way that moves markets and inspires investors? You need the type of confidence and growth that starts from within. WalkMe’s CFO, Andrew Casey, shares how he rethought quotas, metrics, and what drives his teams, so WalkMe could go public—and go big.
Modern software teams understand that they need to make smaller, frequent changes to their code in order to be competitive in the mobile app and SaaS era. That doesn’t mean their business leaders are totally comfortable with a “ready, fire, aim” approach to software deployment.
LaunchDarkly CEO Edith Harbaugh and her co-founders realized eight years ago that companies needed finer-grain control over how their latest software first appears before the world. In a recent interview with Protocol Enterprise, she explained that companies know they need to move fast, but at a “palatable and realistic” pace.
The company’s “feature management” tools — which allow customers to turn features on for niche parts of their audience before they launch wider — are in demand. LaunchDarkly has now raised over $330 million in funding according to Crunchbase, and while Harbaugh wouldn’t tip her hand regarding any upcoming plans to go public, she did allow that an IPO is “just a step, not a final destination.”
6Sense, an AI-based sales platform, was valued at $5.2 billion after raising $200 million.
Globalization Partners hit a $4.2 billion valuation after receiving $200 million in equity for its recruitment platform.
Ironclad raised $150 million at a $3.2 billion valuation for its business contract software.
Lattice raised $175 million at a $3 billion valuation to help enterprises with workforce management.
Clari was valued at $2.6 billion after raising $225 million for its revenue platform.
Microsoft is getting ready to launch a new “unified” design for Outlook email and calendar users as early as this spring, ZDNet’s Mary Jo Foley reported.
Cloud costs can sneak up on customers, even sophisticated users like Have I Been Pwned’s Troy Hunt. Egress costs aren’t just an AWS problem, as Hunt’s analysis of one month’s usage of Microsoft Azure showed.
Club Revenue on Nasdaq digs into the strategies driving revenue growth at the highest performing companies. Tune in as Clari’s CMO Cornelius Willis interviews innovative revenue leaders to learn their tactics for building sales teams that drive unmatched success for their customers.
Thanks for reading — see you tomorrow!