SparkOptimus News Highlights – Week 18

At SparkOptimus, we try to highlight the most important news and background stories in digital, e-commerce and retail. Here is our selection of last week’s news:

Last week, ownership became an interesting topic. We came across an image depicting that ownership is not a requisite for success anymore. The world’s greatest pure players of today do not own the vehicles (Uber), inventory (Alibaba), real estate (Airbnb), or create its own content (Facebook) while these ‘possessions’ are at the core of their business. To counter this trend, Netflix announced it will move to ownership: “We’ve continued to expand our creative role on the shows. Now we’re taking on ownership”, says the company’s CEO Reed Hastings.

As for data, companies actually owning data centers is not the standard anymore. Cloud computing as a substitution is not a new thing, but is predicted to become mainstream this year. This week, Amazon revealed the size of the Amazon Web Services (AWS) division for the first time, and the numbers were scorching. Jeff Bezos and his company have established a lead in the market for cloud computing. A market that will grow to $40 billion and will account for 15 percent of all information spending within the next five years, according to estimates by Forrester Research. Others have followed suit in this development. Microsoft, for example, announced its “cloud revenue” will bring in $6.3 billion this year, up 106%.

The rise of cloud computing might come in handy, as computer chips know physical constraints. Something that might cause Moore’s law not to make it to 60. Instead of lasting 10 years, his law -stating that the number-crunching capacity of our computers and the numbers of transistors on silicon chips double roughly every two years- has already lasted half a century last week.