Thursday 30 July 2015

'St-riike!' Ex-OF Eric Byrnes calls computer balls, strikes



SAN RAFAEL, Calif. (AP) — "St-riike! ... And we're talking outside of outside corners."
"Ball!"
"St-riiike! ... Inside of inside corners."
Eric Byrnes sat behind the large monitor some 90 feet from home plate watching the screen as the computer told him exactly what to announce for the intimate crowd watching independent league baseball at Albert Field, a full moon in the distance.
For the second straight night Wednesday, Supermicro computers in a nearby van and overseen in the ballpark by the former major league outfielder called balls and strikes in what is believed to be the first time in professional baseball an umpire didn't handle those duties.
The visiting Vallejo Admirals and San Rafael Pacifics were thrilled to be part of an experiment using the Pitchf/x automated system designed by Fremont-based Sportvision.
The batter's box is broken down into nine tiny squares, and a yellow spot lights up where the pitch goes, then Byrnes serves as the strike zone umpire by relaying the call. Between innings, he obliges regular autograph requests.
"That actually caught more than I thought," Byrnes quipped into the microphone at one point.
Byrnes is a longtime proponent of an automated strike zone, something he insists is "seamless" and barely changes the game.
Three cameras record the velocity, trajectory and location of every pitch to determine how closely each pitcher comes to hitting the catcher's target.
"To know you're getting every single call right, it takes away all the injustices, in my opinion," Byrnes said.
When the Pacifics' Jeremy Williams struck out looking in the third, Byrnes yelled "Strike three!"
The small crowd booed loudly — capacity at the ballpark in the heart of Northern California's affluent Marin County is about 940. The level is comparable to high Class A ball, with some former Double-A and Triple-A players in the mix.
Byrnes stood up and offered: "I'm just the messenger, I mean, yell at this! Blame the computer! Blame the camera!"
Then the public address announcer sought donations for "paper towels and Windex for Eric to use on his TV screen."
In the bottom of the first, the computer retired Pacifics shortstop Danny Gonzalez on a called third strike.
Byrnes stood up and hollered down to the caged-in dugout below with "Gonzo!" curious what the player thought the pitch was. Gonzalez thought it was low.
Later, another close one on the screen.
"Strike, wow. Nicked it. Shocked, looked like a ball to me, too," Byrnes announced.
"You call them as the computer calls them. This isn't rocket science," said Byrnes, who figures he would have been better than a career .258 hitter with this technology. "It promotes action. Hitters have to swing basically from the bottom of the knees to the armpit."
Wayne Acerogiles, Wednesday's plate umpire, likes the idea of a power pack transmitter and ear piece that would give each pitch to the umpires, who could still make the calls.
"Might as well try it," Pacifics catcher Ricky Gingras said. "It seems like it's real good technology. Might as well see how everybody likes it and try to promote it. It's kind of cool."
Byrnes razzed Acerogiles in the second with, "Easy, Wayne, got a little excited right there."
"Tempo was tricky, and tricky for the batters, too," fellow umpire Eric Thompson said of how Day 1 went. "We have fun being on the field. If we get replaced by robots, we're not on the field anymore, so we're not going to have fun. It's fun to argue."
The crew came into the stands afterward to thank Byrnes, shake his hand and offer their support.
Byrnes was joined by his wife and three children, and 3-year-old son Colton won a musical chairs contest between innings before announcing a couple of pitches late in the game. Byrnes is donating $100 for each walk and strikeout to the Pat Tillman Foundation and would have given $10,000 if he ejected a player for arguing balls and strikes.
He raised $2,700 the first night, $1,900 more Wednesday.
The first game drew about 850 people and took 2 hours, 48 minutes, after breezing through the first six innings in roughly 1:30. Wednesday's 8-2 win by San Rafael went 2:44.
Pacifics Tuesday starter Wander Beras noticed on the screen before his outing how big the strike zone was and immediately made a mental adjustment.
Hitters had a lesson, too.
The technology is more likely than the human eye to call a strike on a breaking pitch that touches the outside of the plate before cutting through the plane.
"We have the technology now to do things like this," Vallejo manager Garry Templeton II said. "It was a pretty cool experience to be a part of. You kind of get to see where some of these umpires are not making calls or making calls. The hitters got a real good experience to what a strike zone is really is. There were pitches they were taking that would usually be called strikes and aren't strikes, so they enjoyed that a lot. At the same time there were pitches they don't usually swing at that were called strikes."
Milwaukee Brewers manager Craig Counsell was intrigued enough he would have liked to be there Wednesday after playing an afternoon game in San Francisco, but the team was flying home to Wisconsin.
"I think it's fascinating, I really do," Counsell said. "It's very interesting and I'm anxious to see the result. I'd love to be able to watch the game even. Now that the technology is available to do something like that, and I'm sure the accuracy will be brought into question, but the fact that there is technology to be able to at least attempt it, it's fascinating. It's something that kind of makes your head spin, really."

Nokia’s Profitability Improves on Higher-Margin Software



Nokia Oyj’s profitability at its network-equipment business improved in the second quarter as higher-margin software contributed more to sales. The stock jumped.
The network unit’s operating margin rose to 11.5 percent from 11 percent a year earlier and 3.2 percent in the previous three months, Espoo, Finland-based Nokia said Thursday. Morgan Stanley analysts had projected 7.7 percent. Group sales gained 9 percent to 3.2 billion euros ($3.5 billion), compared with the 3.32 billion-euro average of estimates compiled by Bloomberg.


Nokia Chief Executive Officer Rajeev Suri has the balancing act of using acquisitions to boost growth while not giving up profitability. Amid sputtering network-gear demand from wireless carriers and competition from Ericsson AB and Huawei Technologies Co., Nokia agreed in April to buy Alcatel-Lucent SA for 15.6 billion euros, a deal that’s set to double revenue and give Nokia the scale to topple its two main rivals.
Alcatel-Lucent today posted a 5 percent increase in second-quarter sales and said free cash flow turned positive for the first time in that period since 2006. Its net loss narrowed to 54 million euros from 298 million euros a year earlier.
Shares of Nokia rose as much as 9.6 percent, the biggest gain in a year, and added 8.7 percent to 6.49 euros at 10:04 a.m. in Helsinki. The stock has more than doubled since Nokia agreed to sell its struggling phone business to Microsoft Corp. in 2013. Alcatel-Lucent jumped 7 percent to 3.49 euros in Paris.

‘Right Direction’

Alcatel-Lucent said Michel Combes will step down as CEO Sept. 1, with Chairman Philippe Camus becoming interim chief for a transition period as the company prepares to be taken over by Nokia.
The Finnish company reiterated its forecast, saying full-year operating margin at the network unit will be around the midpoint of its long-term target of 8 percent to 11 percent.
Sales at the network unit, which accounts for 85 percent of Nokia’s revenue, increased 6 percent to 2.73 billion euros as the company provided more software and services and benefited from the euro’s decline.
“A higher proportion of software sales for networks in the second quarter explains the jump in the unit’s operating margin,” said Hannu Rauhala, an analyst at Pohjola Bank in Helsinki with a hold rating on the stock. “It’s encouraging to see it heading in the right direction.”
The company is nearing an agreement to sell its maps division to a group of German luxury-car makers, people familiar with the matter said this month. Revenue at that unit rose 25 percent to 290 million euros and Nokia said its strategic review for the business is at an “advanced stage.”
Sales at Nokia’s research and development unit, which licenses the company’s patents and develops products such as the N1 Android tablet and a virtual-reality camera calledOzo, gained 31 percent to 193 million euros.

Be wary of that Russian. He might HAMMERTOSS a software nasty at you



Security researchers have blown the lid on another Russian cyberspy crew, rated as the most sophisticated yet by security firm FireEye.
APT29 – which has only been operational since around the end of last year – uses a strain of malware called Hammertoss.
"The group has demonstrated an understanding of network defenders’ countermeasures," FireEye reported. "During our investigations, APT29 continually deployed new versions of backdoors to fix bugs and add functions, as well as kept tabs on network defenders’ activities to counter attempts to clean the client’s system to maintain access to the victim environment."
It's the sophisticated command and control mechanism behind the malware that marked the whole operation out as elite, as FireEye explains.
The malware beacons to custom Twitter handles, where it scans for specific links and hashtags, then goes to Github where it obtains an image that APT29 applies steganography to, to decrypt commands, and finally executes commands on the victim machine before uploading to popular cloud storage services.
The attackers took pains to make their infrequent malicious communications closely resemble legitimate users’ traffic, thereby concealing malware-generated chatter in the “noise” of common network traffic.
FireEye reckoned APT29 is Russian because of the data they've been stealing and its choice of targets – a wide range of governments and organisations worldwide. Additionally, APT29’s work hours closely matched working hours in Moscow and the group apparently takes time off for Russian holidays.

Android Mediaserver Bug Can Render Devices Unresponsive: Trend Micro



Soon after Google announced a security update for the Stagefright vulnerability (a critical security bug) for its Nexus devices, a new bug has been reported that security researchers claim leaves Android device "dead."
Trend Micro's Wish Wu, a mobile threat response engineer, has detailed the newly discovered vulnerability in the Android mobile operating system. According to thereport, the vulnerability renders the Android device unresponsive - "silent, unable to make calls, with a lifeless screen."
The vulnerability is said to be present from Android 4.3 Jelly Bean to the current version, Android 5.1.1 Lollipop. It's worth noting that majority of Android devices, almost 90 percent, are currently running these versions, according to the Google's Android distribution numbers.
Wu explains the process, "The vulnerability lies in the mediaserver service, which is used by Android to index media files that are located on the Android device. This service cannot correctly process a malformed video file using the Matroska container (usually with the .mkv extension). When the process opens a malformed MKV file, the service may crash (and with it, the rest of the operating system)."
Further explaining, Trend Micro notes that the vulnerability can be exploited in two ways either via an installed malicious app on the device or through a specially-crafted website.
"The first technique can cause long-term effects to the device: an app with an embedded MKV file that registers itself to auto-start whenever the device boots would case the OS to crash every time it is turned on," notes the report.
Some of the implication of the vulnerability is said to be unresponsive UI and even claims that if the phone is locked, it cannot be unlocked. Trend Micro speculates some of the potential threat scenarios where it claims attackers can use it for ransomware. However, it's worth noting that once the device is unresponsive; how the attackers will ask for ransom from affected Android users.
Trend Micro notes that the vulnerability was privately reported to Google in May. The company acknowledged the report however marked the issue as a low priority vulnerability. A Google spokesperson told Engadget that the "future version of Android" would patch the vulnerability while stressed that there has been "no evidence of actual exploitation."

Don't want pranksters 'bricking' your Android? Just stop using the internet, duh – Google



Video Trend Micro peeps say they have discovered a security bug that miscreants can exploit to seemingly murder millions of Android smartphones.
A device will appear lifeless and unable to make calls, with a dead screen and no sound output, if an attack is successful, we're told. All a victim has to do is visit a dodgy webpage, or run an app containing a malicious file. Rebooting the supposedly dead smartphone will revive it.
Google's solution is to simply get over it, not browse untrusted websites on your phone, and avoid installing evil applications. A patch to fix the hole is on its way, we're told.
The vulnerability stems from an integer overflow bug in Android's media server service, which can be exploited by a malformed video file in a Matroska container. When Android tries to index the file, it crashes, bringing the rest of the operating system down with it.
"Ransomware is likely to use this vulnerability as a new 'threat' for users: in addition to encrypting data on the device, the device itself would be locked out and unable to be used. This would increase the problems the user faces and make them more likely to pay any ransom," said Trend's mobile threat response engineer Wish Wu.
As a proof-of-concept, Wu created a seemingly normal application that included the malformed .mkv container. When the user taps the app's icon, the phone is swiftly borked:
In addition to this, Wu set up a website hosting the same file. When the phone is directed to the site – something that's easy enough to do for a reasonably confident social engineer – the phone suffered similar problems.
The flaw affects Android versions 4.3 and above, meaning about half of all 'droid handsets out there are vulnerable. Trend warned Google of the bug in May but went public with it on Wednesday this week.
Google isn't that concerned about the issue, though, or perhaps it's too busy dealing with theStagefright clusterfuck. The media server vulnerability is being treated as a low priority.
"We want to thank the researcher for their report as it helps strengthen Android's security. While our team is monitoring closely for potential exploitation, we've seen no evidence of actual exploitation," Google told The Register in a statement.
"Should there be an actual exploit of this, the only risk to users is temporary disruption to media playback on their device. So, simply uninstalling the unresponsive application or not returning to a website that causes the browser to hang would correct the issue. In addition, we will provide a fix in a future version of Android."

IBM's Watson computing technology learns Japanese



TOKYO (AP) — The IBM Watson super-brainy computing technology, which has helped organize massive data as well as beaten champions on the Jeopardy TV show, is now learning Japanese.
IBM Watson, a unit of the U.S. technology and consulting company, said Thursday it was working with Japanese telecommunications and robotics company Softbank Corp. to share Watson with startups and universities in Japan for a variety of consumer applications, starting October.
Watson Senior Vice President Mike Rhodin told reporters that Watson, a cloud-based technology, is an effective tool in handling a large amount of unstructured data, such as clinical tests, information on drugs and regulations in the legal field.
Since such information and knowledge has grown so enormous, and is constantly updated, no human can hope to keep up, he said.
That's where Watson can help.
Watson has also proved effective in education, such as online classes and advising teachers. It can also help decide optimal travel plans, juggling options on hotels and flights.
One example of a new partnership in Japan is with the University of Tokyo, which will use IBM's Watson Genomic Analytics technology, a cognitive computing system, to discover new cancer treatment options based on gene mutations — the first organization outside North America to use Watson Genomic Analytics.
Watson already knows English, and has acquired Spanish, French and Portuguese, and is set to learn Arabic next.
IBM's clients in Japan so far have been mostly business clients. Softbank, which also has a telecommunications business, was chosen as a partner to reach startups and consumers.
The company showed a video in which Softbank's humanoid robot Pepper was a sales clerk at a Japanese electronics store.
Pepper has cameras, sensors and voice recognition to simulate an emotional interaction with people. In the video, when the shopper asked, "What's good about a 4K TV?" Pepper used Watson to go into a database and give a rundown on its advantages.
Rhodin said the world was undergoing an "information revolution," flooded with newly generated computer data plus information from social media, including video, and what's coming from Internet-connected sensors and devices.
"Our current tools are incapable of dealing with all of this information," he said, stressing that filtering and making sense of data has become crucial. "We are looking for the signal in all the noise."

Windows 10: Why Microsoft Is Giving It Away for Free



Microsoft debuted its new Windows 10 operating system Wednesday, in what the company hopes will be a pivotal moment in its bid regain its sway in a world where the PC is no longer king.
The first people to get the new software Wednesday included about 5 million "insiders," or tech enthusiasts who previously enrolled in an early preview program. Microsoft is counting on tens or even hundreds of millions more to download its latest release for free in coming months.
Others will get the software when they buy a new PC. While some new models equipped with Windows 10 are available in stores this week, more will hit the market this fall. Microsoft and major PC makers are planning a global ad campaign that will extend into the crucial holiday shopping season.
Although Windows 10 is coming to PCs and tablets first, it's also designed to run phones, game consoles and even holographic headsets. It has new features, a streamlined Web browser called Edge and a desktop version of Cortana, the online assistant that is Microsoft's answer to Google Now and Apple Inc's Siri.
Still, the company insists Windows 10 will seem familiar to users of Windows 7, the older operating system still running on most PCs. Microsoft and PC makers want to erase the memory of the last big update, 2012's Windows 8, which alienated many with its jarring, unwieldy design.
Microsoft skipped the name Windows 9, as if to distance itself further from the last release. While many analysts believe Windows 8 made sagging PC sales even worse, it's far from certain if Windows 10 will spur the industry back to growth.

Here's a look at the launch and why it matters:

Q: What happens this week?
A: 
Microsoft planned to hold promotional events in several cities Wednesday, tied to a global ad campaign and a series of charitable donations. In addition to the 5 million insiders, anyone with the Home or Pro versions of Windows 7 or 8 - but not the Enterprise versions used by big companies - will be eligible to download Windows 10 for free, at any time over the next year.
It's not clear how many people will get it the first day; Microsoft says it will deliver downloads in waves, to ensure things go smoothly, but it hasn't said how long that will take. Details on how to upgrade are here.
Retailers such as Best Buy, Staples and Wal-Mart should have some desktops and laptops with Windows 10 already installed. They'll also be able to update the software on new PCs that were shipped with the last version of Windows.
Q: Why is Microsoft giving Windows 10 for free?
A:
 The company wants to get the new software on as many devices as possible. Microsoft is betting that a large pool of users will help convince independent programmers that it's worth their time to build useful or entertaining apps for Windows 10 devices. Executives also believe that if people are exposed to the latest and best Windows, they're more likely to try other Microsoft products on PCs and mobile devices.
CEO Satya Nadella says he wants to have 1 billion devices running Windows 10 in three years. Microsoft estimates there are 1.5 billion people who currently use some kind of Windows. Rather than charging them to upgrade, as Microsoft used to do, it's embracing the free download model pioneered by Apple and Google.
Q: How will Microsoft make money?
A:
 Microsoft will still collect licensing fees from PC makers that install Windows 10 on new machines. In recent years, most consumers have waited until they bought a new computer to get the latest Windows. Microsoft also makes money from selling Windows and other software to large businesses and organizations.
In addition, Microsoft is counting on Windows 10 to spur more use of other services. Microsoft makes money from selling advertising for its Bing search engine; it also collects fees from people who use premium versions of its Office software, OneDrivecloud storage and Skype.
Q: Why does this matter to consumers?
A:
 Microsoft says Windows 10 is designed for the way people use computers today - with a faster Web browser and features that make it easier to start tasks on a PC and then switch to a hand-held device. (Apple and Google tout similar features in their software.)
Windows 10 also lets users log in with their face, iris or thumbprint, instead of remembering passwords, though this works only with computers equipped with the right hardware.
Most PC users are still working with six-year-old Windows 7, thanks to Windows 8's unpopularity. But Microsoft plans to phase out maintenance and security support for Windows 7 over the next five years, and for Windows 8 by 2023, as it did with the olderWindows XP. Still, there's no need to panic about upgrading right away.
Q: Why is it important to the tech industry?
A:
 The growth in mobile devices has caused PC sales to decline for more than three years, hurting manufacturers like Hewlett-Packard and companies like Microsoft andIntel, whose products are used with PCs.
Windows 10 won't make people give up their hand-held gadgets, but it's part of Nadella's strategy to reposition Microsoft for a world where people use multiple devices. At the same time, PC makers are hoping it helps boost interest in their products, since some Windows 10 features are designed to work best with the latest hardware advances.
Jeff Barney, who runs Toshiba's consumer PC business, said the new software is easier to use than Windows 8 and will complement Toshiba's newest machines. Barney said he isn't expecting a big rush to stores Wednesday, but "over time, I think we're going to see a positive trend in sales."

Tuesday 28 July 2015

For the first time, sensors and a computer play umpire in a pro baseball game



SAN RAFAEL, California—It turns out 21st century baseball with a computer calling balls and strikes feels a lot like 20th century baseball (you know, with a human behind the plate). There appears to be two main differences. The first and most obvious is volume. Machines just aren’t good at giving that classic umpire grunt, so you still need a warm body to do it.
The second? Accuracy.
"You face [Hall of Fame pitcher] Greg Maddux and he’d get a foot off the plate," recalls Eric Byrnes, former Oakland A's player and current baseball analyst. "So if we have a chance to get it right, if we have a chance to get a pitch every time, why would we not?"
Byrnes was the man behind Tuesday night's historic technological feat. On a picturesque evening in Marin County just north of San Francisco, the San Rafael Pacifics faced off against the Vallejo Admirals in what was billed as the first professional baseball game to be called by a piece of technology rather than a person. In this minor league showdown, the role of the balls-and-strikes umpire was played by a mounted three-camera tracking setup synced with a computer. (Two of the cameras are mounted at each end of the upper corner of the grandstands behind the plate, the third sits in center field.) Together, the devices comprise a system better known by its commercial moniker: Pitchf/x. It was soon dubbed #RoboUmp on Twitter.
"I’m not looking to eliminate any umpires, not one. If anything, we’re essentially going to add an umpire," Byrnes noted. Accordingly, there were still two standard umpires on the field and another behind the plate. That's the standard setup of the Pacific Association of Professional Baseball Clubs, an independent league in the San Francisco Bay Area (it's considered a Single A equivalent). But rather than his usual duties, the homeplate umpire largely remained silent, only calling foul balls and any potential plays at the plate.
Byrnes, for his part, gave the technology a voice. Mic'd up during the game, he'd grunt "STRIIIIKE" with an umpire's gusto and flatly call "ball" with every outside pitch. And unlike a traditional umpire, Byrnes could occasionally let some personality in. "Just caught the outside corner dude, and I'm talking just nicked it."
Vallejo Admirals Third Baseman Joshua Wong told Ars before the game that he was encouraged by the Pitchf/x tests he saw.
"I feel like it speeds the game up more, it gets the hitters to swing at more pitches," he said. "It’s good for the game. Just being more accurate and having better calls is going to help us more."



Old tech, new experiment

Pitchf/x isn't a new invention. It has been in use behind the scenes for a decade to record both the precise location and trajectory of pitches. It’s already used in all 30 Major League Baseball parks for analytics purposes as well as online and television broadcasts. If you've seen a Sunday Night Baseball game on ESPN, you're familiar with Pitchf/x's work. (A predecessor system by a now-defunct company, whose product was called PitchTrax, debuted as far back as 2002.)
In many ways, Major League Baseball has historically been averse to adding technology. Unlike other sports that have at least embraced computers or cameras for scoring confirmation or play reviews, MLB instant replay only debuted in full during the 2014 season. But when it comes to utilizing a RoboUmp for something as integral to the game as pitcher-hitter interactions, technology must cope with uncertainty. Consider MLB's inherently relative definition of the strike zone:
The STRIKE ZONE is that area over home plate the upper limit of which is a horizontal line at the midpoint between the top of the shoulders and the top of the uniform pants, and the lower level is a line at the hollow beneath the kneecap. The Strike Zone shall be determined from the batter's stance as the batter is prepared to swing at a pitched ball.
In other words, it’s roughly the space over the plate measured from the armpits or letters across a player’s chest to the knees. It literally changes from hitter to hitter. And as any good pitcher knows, it may slightly change with every umpire. Identifying where that space is in a split second, particularly in the lower or higher corners, is more art than science. Catchers also play a role by attempting to frame a pitch by quickly adjusting their gloves after the catch to indicate to the umpire that the ball was, in fact, caught in the zone.
Umpires do their best, but they make mistakes. Heckling and coaches' arguments wouldn’t be part of the game if they were perfect every time. For its part, Pitchf/x’s hardware defines a strike as any ball that touches the strike zone—which likely means that some players won’t like what they saw thrown to them.
"I'm sure many people around baseball will be watching the debut of this new system to see how it goes," Jacob Pomrenke, a producer at the Society for American Baseball Research, e-mailed Ars. "There will always be some kinks to work out and it will be intriguing to see how the players respond (especially to calls they don't like!) The idea of using an automated system to call balls and strikes has been talked about for years. It'll be nice to finally have a real-life example to see how it works at the professional level, but there are still a lot of factors that would have to go into the decision to implement this type of system at the major-league or the affiliated minor-league level. This is a system that is very dependent on precise technology, and even the Pitchf/x system that MLB has used for nearly a decade now continues to have hiccups and glitches that require human intervention."
Pomrenke pointed out that most problems the software has had were relatively minor. Grantlandoutlined a few such errors from this exact setup in 2013, and most had to do with mis-calibration. In order for sensors and software to replace human umps, fans and the MLB would have to be "willing to accept a much smaller amount of inexplicable error in exchange for a larger amount of explicable error," Dan Brooks, founder of Pitchf/x repository and BrooksBaseball.net, told Grantland at the time.


The implementation of RoboUmp on this night is essentially a passion project for Byrnes. If all goes well (the "ump" will work tomorrow's game too), he hopes that future home plate umpires could work in tandem with a Pitchf/x-like system, utilizing something resembling a watch that was in use for the 2014 World Cup to alert refs about goal-line technology.
"I think when you do see this in the major leagues, it will be very clean, it’ll be something where the fans won’t even notice," he added.
As for things in Marin County, this was one time where the umpire truly did steal the show. The game itself moved along briskly but largely without action; San Rafael led 1-0 in the sixth and the two teams combined for less than 10 hits total. Chatter in the stands instead focused on the ump, most of it supportive. No one showered the tech with familiar boos or "You suck, ump!" refrains.
For those involved with the experiment, like Pacifics’ Assistant General Manager Vinnie Longo, they hope such talk is a sign of things to come.
"If the system does well, we're going to have a great storyline to talk about for the next couple of years," he told Ars.

Software startup Anaplan targets SAP, Oracle in fast-growing business planning market



Business planning software start-up Anaplan is nipping at the heels of industry leaders SAP, Oracle and IBM, with sales of its cloud-based service tripling in each of the past three years as it seeks to shake up the market.
Customers are demanding more flexible ways to use business planning software, which crunches corporate data to allow companies to forecast growth and set performance goals.
While major players like SAP, Oracle's Hyperion business and IBM's Cognos and Applix units have been forced to offer cloud-based products, their focus has remained on packaged software as it makes up the bulk of their revenue.
This has opened the door to nimbler rivals focused solely on cloud-based software in the fast-growing market.
"There is a major shift going on and Anaplan is at the forefront," Forrester business apps analyst Paul Hamerman said. "It appears to be the fastest-growing vendor in this space and the one which already has good traction with large companies."
Anaplan is backed by cloud market leaders Salesforce and Workday, both as investors and by integrating their sales and marketing and human resource products.
The company, which was founded in a north England farmhouse in 2006, is considering a stock-market listing in the coming year, although it said its rapid growth in customers and revenue gave it room to be patient.
"We are really going after 'global 2,000' companies," Laurent Lefouet, Anaplan's managing director for Europe, Middle East and Africa said in an interview. As of January, it had signed up users at 300 companies, two-thirds of them global firms, he added.
Lefouet said Anaplan was on track to sign up 150,000 users this year, and should triple that number in 2016, putting it in reach of 1 million users by 2017 or 2018, he said. By contrast, SAP and Oracle count tens of millions of cloud software users, although these numbers include a far broader set of products.
While Anaplan, now based in San Francisco, could consider an initial public offering (IPO) in the coming year, it is focused on its next milestone of signing up 1 million users, or an average of 1,000 users across 1,000 global accounts, Lefouet said.
However, business software analyst Hamerman said it was more likely that small cloud players would be bought up by bigger rivals than go public.

High costs

Traditional, non-cloud-based, planning software suffers from high costs and inflexible design, while customers are "locked in" by vendors as software switching costs are high, Hamerman said. But customer demands are changing rapidly, he added.
Anaplan offers users a cloud-based service that processes billions of spreadsheet cells of corporate data on central computers, then illustrates the results in charts and graphics within a user's web browser. Its closest rivals are U.S.-based Adaptive and Host Analytics.
Industry experts say that what separates Anaplan from many of its competitors - both large and small - is the way it twins sophisticated data analysis and modelling with a relatively simple interface that allows its software to be used by managers across corporate departments, without lots of tech support.
Hamerman said the business planning market was currently worth around $3 billion in annual sales, spread across 15 to 20 players. But Anaplan said its potential audience was 20 percent of all corporate employees, a far bigger market that it said could be worth upward of $20 billion in the long run.
Business planning tools, an outgrowth of accounting systems finance teams use to manage corporate budgets, are now being used by sales and marketing teams to forecast targets, and human resources or operations to set performance goals.
Anaplan said it had recently begun to see adoption of such software by thousands of users in big corporate names such as Hewlett-Packard, Intel's McAfee unit, VMware and consumer groups Procter & Gamble, Reckitt Benckiser and Kimberly-Clark.
Anaplan and its peers decline to disclose revenue figures. But a calculation based on the 45,000 customers Anaplan says it has signed up combined with an estimated average annual subscription fee comparable to Salesforce.com's roughly $1,000, suggests revenue is nearing $50 million (45 million euros).
The Yorkshire-founded, Silicon Valley-financed and French executive-led firm has raised around $150 million to date, with its latest funding round of $100 million led by Draper Fisher Jurvetson and including Sands Capital, Brookside, Bain Capital, along with Salesforce and Workday.

Education software company Blackboard is looking to sell for $3 billion



(Reuters) - Blackboard, a U.S. software company that provides learning tools for high school and university classrooms, is exploring a sale that it hopes could value it at as much as $3 billion, including debt, according to people familiar with the matter.
Blackboard's majority owner, private equity firm Providence Equity Partners LLC, has hired Deutsche Bank AG and Bank of America to run an auction for the company, the people said this week.
Blackboard has annual earnings before interest, tax, depreciation and amortization of around $200 million, some of the people added.
Two of the people said that Blackboard could fetch a valuation between 14 times to 17 times EBITDA, up to $3.4 billion, based on current multiples of subscription-based software companies.
The sources asked not to be identified because the sale process is confidential. Providence Equity, Blackboard, Deutsche Bank and Bank of America declined to comment.
Based in Washington D.C., Blackboard provides custom software to help students collaborate on assignments and communicate with teachers. It serves 19,000 clients in 100 countries including 1,900 international institutions, with 80 percent of the top academic institutions using its software, according to its website.
The majority of Blackboard's business is from higher education clients but it also generates revenue from K-12 schools and from government and corporate clients. The company has also branched into "student pathway" services that help students manage financial aid, video conferencing and other areas.
Providence took Blackboard private in 2011 for $1.64 billion and also assumed $130 million in net debt.
A pioneer in education management software founded in 1998, Blackboard has seen its growth slow in recent years as cheaper and faster software upstarts such as Instructure Inc have tried to encroach on its turf. Since its launch in 2011, Instructure has signed up 1,200 colleges and school districts, according to its website.  
The sector has been very active for private equity firms. Last year, Hellman & Friedman LLC acquired K-12 education company Renaissance Learning for $1.1 billion, and Charterhouse Capital Partners acquired Skillsoft, which provides educational software to businesses, for more than $2 billion.
Apollo Global Management LLC has held talks with investment banks about taking McGraw-Hill Education public later this year in an IPO worth more than $5 billion, Reuters reported in April.
Providence has previously invested in education companies ITT Educational Services, Archipelago Learning and Education Management Corp.

Desperate Microsoft PAYS Win Server 2003 laggards to jump ship



Exclusive Microsoft is paying customers to dump Windows Server 2003, The Register has learned.
The software giant is so desperate for the thousands who missed its July 14 extended support cut-off date to get off the legacy server operating system, it’s decided to start eating the costs.
Microsoft is giving away Windows Server 2012 licenses for a year, funding analysis of customers’ work to assess Windows Server 2003 migrations – and it’s paying bills charged by third parties to execute migrations, an integrator source has told The Reg.
In some instances, the reduced Windows Server 2012 licenses are being seen as a reduction in cost of a Windows Server Custom Support Agreement (CSA). Customers who sign a Microsoft CSA continue to receive security fixes and patches – but for a price.
Gartner vice president Carl Claunch told The Reg that CSAs start at $300,000 for the first year, regardless of how few Windows Server 2003 machines you have. The price goes up by 50 per cent in the second year.
Actual CSAs discounts are being offered based on volume – size of customers’ server estates. “It’s standard discount stuff,” Claunch told The Reg.
“Of all the clients I speak to, a third are in serious analysis for a CSA,” Claunch reckoned.
Cash to kick Windows Server 2003 is being channelled into accounts from Microsoft’s sales people, who are allocating money faster to customers who express an interest in Azure rather than more on-premise kit with Windows Server 2012.
Getting laggards off Windows Server 2003 has become a top priority for Microsoft.
Claunch reckons 2.5 million physical servers worldwide overshot Microsoft’s July-14-end-of-support date; a number that excludes virtual servers.
The Register’s source calculated that more than 50 companies in the UK’s FTSE 500 are each running “thousands” of machines loaded with Windows Server 2003.
Microsoft has determined it’s better to take a hit now as customers will more than pay it back over the long term by consuming services on Azure or by buying additional Windows Server software and applications. But maintaining Windows Server 2003 – even for CSA-paying organisations – would divert vital resources from Microsoft's bigger corporate priorities.
“The most pressing requirement for developers is to get Windows 10 and successor products out the door so they can gain market share in tablets and smart phones,” Claunch said. “It’s critical they focus on that as every developer providing security patches for Windows Server 2003 is not available for this essential battle.”
The Reg’s integrator source told us: “Microsoft is keen to help pay them [customers] to move. They want shot of it – they are committed to getting Microsoft customers off an unsupported version of Windows. They don’t want to support it.”
A spokesperson for Microsoft told The Reg it had “nothing to share.”