ERP News

Alphabet Spells Big Future Profits With Just 2 Letters: AI

233 0
Alphabet Spell

Alphabet Spell

Alphabet Spell-Alphabet shareholders have had a rough month.

Stock traders and analysts blame a shortfall in Alphabet’s first-quarter advertising revenues. But all this selling is short-sighted.

The Mountain View, Calif., company has always been an accidental ad seller. Its real business is machine learning. And now — at long last — there is a viable, growing market for that skill set.

The point of inflection is near, and investors should buy this dip.

Javier Polit is not a household name. He’s the chief information officer at Procter & Gamble, the maker of brands ranging from Tide laundry detergent and Bounty paper towels, to Gillette razors and Old Spice. His job is to find ways to secure, organize and manipulate the vast amounts of data the company collects to make the business more profitable.

He was speaking at the eMerge Americas conference in April. Talking about the red-hot cloud computing market, Polit told a story very much outside the current mainstream narrative.

report from Canalys in February showed the $80 billion market for cloud infrastructure is currently dominated by Amazon Web Services. The Amazon.com subsidiary commands 32% market share. Microsoft unit Azure takes 16%, and Alphabet’s Google Cloud is a distant third, with only 9% share.

For now, anyway …

Polit told reporters that P&G has investments with AWS, Azure, SAP, Dell Technologies and Google Cloud. However, betting across several clouds is expensive. And pushing data between platforms creates friction.

The strategy is at a crossroads. The company needs to prioritize what investments will best advance its digital transformation.

That directive comes from the top. CEO Robert McDonald told McKinsey & Co. that he’s on a mission to make the consumer products giant the world’s most technologically enabled company.

Jargon aside, McDonald wants to use AI to inform everything from how the company creates molecules for soaps and lotions, to how it interacts with customers.

He also wants to use data to find business models that might not otherwise be obvious.

Only one leading cloud infrastructure company has its roots in machine learning and AI. And that’s Alphabet.

Read More Here

Article Credit: Forbes

Leave A Reply

Your email address will not be published.

*

code