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Google picks South Africa for its first cloud region in Africa

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Tech giant Google has today announced the launch of a cloud region in South Africa, its first in the continent, playing catch-up to other top providers like Amazon Web Services (AWS) and Microsoft Azure, which made inroads into the continent a few years ago.

Google said it is also building Dedicated Cloud Interconnect sites, which link users’ on-premises networks with Google’s grid, in Nairobi (Kenya), Lagos (Nigeria), and South Africa (Capetown and Johannesburg), in its quest to provide full-scale cloud capabilities for its customers and partners in Africa.

Google plans to tap its private subsea cable, Equiano, which connects Africa and Europe to power the sites. Equiano has been under development since 2019 and has so far made four landings — in Togo, Namibia, Nigeria and South Africa.

South Africa now joins Google’s global network of 35 cloud regions and 106 zones worldwide, and the announcement follows the recent preview launch of regions in Malaysia, Thailand and New Zealand. Google Cloud regions allow users to deploy cloud resources from specific geographic locations, and access several services including cloud storage, compute engine, and key management system.

“We are excited to announce the first Google Cloud region in Africa. The new region will allow for the localization of applications and services. It will make it really easier for our customers and partners to quickly deploy solutions for their businesses, whereby they’re able to leverage our computer artificial intelligence or machine learning capabilities, and data analytics to make smarter business decisions as they go forward,” said Google Cloud Africa director, Niral Patel.

He added that the new region and interconnect sites will take its cloud computing services closer to its clients, allowing its customers to choose where to consume the products from.

“What we’re doing here is giving customers and partners a choice on where they’d like to store their data and where they’d like to consume cloud services, especially in the context of data sovereignty. This allows customers to then store the data in the country should they choose to do so… I guess for me the most important element is that it gives customers the element of choice,” Patel said.

The ability for users to choose where they store their data is increasingly critical as countries like Kenya implement privacy and data laws, which require companies to store their data within borders and process it through servers hosted locally.

The decision to set up a region in South Africa was informed by the demand for cloud services and the market’s potential. Still, the company is looking to launch in more markets within the continent as demand for its products soars. Its early adopters include large enterprise companies, and e-commerce firms like South Africa’s TakeAlot and Kenya’s Twiga.

“We continue to evaluate market demands as we work with our customers to see them transform and grow in these markets. We continuously make these assessments and it is on that basis, that we continue to invest,” Patel said.

According to research by AlphaBeta Economics, commissioned by Google Cloud, the South Africa cloud region will contribute over $2.1 billion to South Africa’s GDP and support the creation of more than 40,000 jobs by 2030.

Google Cloud, Azure by Microsoft, and AWS are the three biggest public cloud storage players in the world, according to data from Gartner, but it’s unclear why until now, Google has been absent in Africa.

Microsoft launched two cloud regions in South Africa: Cape Town and Johannesburg (only the cloud region in the latter remains active) in 2019, the same year Google announced it “had no plans to establish a cloud region or data center in Africa,” according to this report; however, it didn’t rule it from happening in the foreseeable future.

Amazon followed suit in 2020, scaling its AWS data centers to South Africa through Cape Town. Oracle, another major player, also established its data center in Johannesburg this year. In response to whether Google is playing catch up with the other cloud storage players, Patel and Nitin Gajria, the managing director of Google Africa, painted a picture whereby every major player is concerned about broadening the internet ecosystem in Africa through their data centers rather than vying for a more significant market share.

“In terms of where we are on the continent with the internet, the job to be done is thinking of how do we bring more people and businesses online, how do we help more entrepreneurs get access to capital and so on,” Gajria remarked. “In business parlance, this is less of a market share zero-sum game, but more of how do we work collectively across the private sector, public sector, civil society, to just build a large, vibrant internet ecosystem that helps broaden economies and businesses, as well as generate jobs.”

With Google’s launch, South Africa now houses four major cloud storage providers on the continent.

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Mozilla acquires the team behind Pulse, an automated status updater for Slack

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Firefox developer Mozilla is making a rare foray into the world of mergers and acquisitions, with news that it has snapped up recently-shuttered California-based productivity startup Pulse.

Terms of the deal haven’t been disclosed, but the deal is tantamount to an “acqui-hire,” with Mozilla looking to deploy the Pulse team across an array of machine learning (ML) projects.

“We’re acquiring Pulse for the incredible team they have built,” Mozilla chief product officer Steve Teixeira told TechCrunch. “As we look to continue to improve user experiences across all of our products, ML will be a core part of that.”

Feel the pulse

Founded out of Menlo Park in 2019, Pulse in its initial guise was a “virtual office” platform called Loop Team, but after honing the idea for a couple of years it pivoted and rebranded last November. Pulse, essentially, was an automated status-updating tool that used signals based on pre-configured integrations and preferences set by the user.

For example, users could synchronize Pulse with their calendar and Slack, setting rules to stipulate what their status and corresponding emoji should be based on keywords in their calendar event title. If their schedule for a particular time says “hair appointment” from 12-1pm, then the person’s Slack status update might display a scissors emoji alongside the word “haircut.” Or, it might say “birthday” alongside a cake emoji if that’s what is in their calendar.

Pulse: Calendar rules

But Pulse sported myriad integrations with business tools that brought similar functionality. For example, users could link Pulse with Zoom, so that whenever they start a video meeting, a telephone emoji automatically displays in their Slack status to tell people they are unavailable.

Shutting shop

Pulse had flown largely under the radar since it started rolling out to a small group of users last December, but the company had apparently garnered some fairly big-name customers, including Netflix and 1Password, with monthly premium plans starting at around $3 per user.

The company was among TechCrunch’s Battlefield 200 startups at TC Disrupt in October, and TechCrunch interviewed Pulse cofounder and CEO Raj Singh at the event for a potential future startup profile piece. Singh said at the time that it was planning to raise a seed round of funding early in the new year, something that obviously won’t be happening now. When quizzed on whether Pulse was more like a feature that the big tech platforms could just build themselves, rather than a sustainable business in its own right, Singh was adamant that Pulse could thrive as a standalone product. While he acknowledged that companies such as Microsoft or Google might well want to develop a similar automated status update tool for their own products, they were less incentivised to make it work well as an integrated feature that plays ball with various third-party tools.

Pulse was all about communicating things to colleagues around the world passively, regardless of what tools they were using or what timezone they’re in. This is particularly important with remote work becoming the norm, and Pulse was looking to find its niche at a time when workplace culture is rapidly changing.

“A lot of people actually want to update their status, but it’s tedious,” Singh told TechCrunch in October. “But there’s hundreds of signals, and the thing we realised was status is not just ‘availability’, it’s actually a way to communicate empathy.”

While Pulse did have plans to expand beyond Slack into other workplace communication tools including Microsoft Teams and Google Workspace, the company abruptly announced in late October that it was shutting down. In an email distributed to customers at the time, the company attributed this to “market conditions,” noting that it was finding it difficult to raise fresh capital — but it did confirm that it had found a buyer, the identity of which was unknown until today. Singh also said in the email that there was a chance that the buyer could resurrect Pulse in some form, but there is little indication that Mozilla has such a plan on its radar.

What’s next

To the casual observer, Slack was probably the obvious contender to acquire Pulse. For starters, there is the fact that Pulse had been focused exclusively on Slack status updates. But on top of that, Singh had previously founded a smart calendar app called Tempo AI which he sold to Salesforce for an undisclosed sum in 2015.

Singh then joined Salesforce to help with the initial transition of Tempo AI’s technology into Salesforce’s Inbox app. And as we now know, Salesforce went on to acquire Slack in 2020, so with Singh’s connections to Salesforce and his product’s close alignment with Slack, there seemed like only one possible suitor here. 

Tempo AI Image Credits: Tempo AI

Alas, Slack hasn’t acquired Pulse — the Mozilla Corporation has. It is something of a surprise, if for no other reason than Mozilla isn’t renowned for its M&A endeavors, though it is starting to ramp up its investment efforts after launching its first venture capital fund last month. But its only known acquisition to date was back in 2017, when it snapped up Pocket, a popular read-it-later web-clipping service that Mozilla had already integrated into its Firefox browser two years previous.

As a side point, Pulse itself had been on something of an acquisition spree this year, buying rival status updating service Holopod back in January, followed by audio-based communications platform Commons in March. Then in May, news emerged that Pulse had acquired team communication startup Lounge.

“Our strategy [with M&A] is pretty straightforward — we look for opportunities to bring on talent and technology that helps us improve experiences for our customers,” Teixeira said. “With Pulse, this is about supplementing the skillsets we have here already as a way to speed up our development efforts. We have a high bar for any acquisition, but if we find teams and technologies with incredible talent that share our mission and vision for the future of the internet, we are absolutely open to pursuing a transaction.”

As it happens, Pocket may be an early beneficiary of the Pulse acquisition. While Mozilla ultimately plans to deploy the Pulse team across various projects, Teixeira says that an early focus will be on using ML to improve personalization in Pocket, which presumably means in the form of content recommendations.

It’s worth noting that Mozilla has dabbled with ML a fair bit in the past, including experimental projects inside Firefox that recommend content to users, as well as tracking prices across myriad online stores. The company is also leveraging ML across various voice and speech projects.

“We see opportunity to use ML in virtually all of our products, including Firefox, as a foundation for improving the experience for all of our customers,” Teixeira said.

Mozilla hasn’t revealed how much it’s doling out for the startup, but Pulse had only raised around $4.7 million in pre-seed funding according to Crunchbase data, and given its difficulties in raising fresh capital, it’s safe to assume that Mozilla hasn’t broken the bank here.

What Mozilla is getting for its money is six people, including Pulse’s three founders Raj Singh, Jag Srawan, and Rolf Rando, each bringing significant engineering, ML, and product execution experience to Mozilla’s ML efforts. Singh actually created his previous startup Tempo AI as a project inside SRI International, the Stanford research institute responsible for Siri. He rejoined SRI as executive in residence (EIR) after leaving Salesforce, remaining there until founding Pulse (then Loop Team) nearly four years ago.

“In building Pulse, we enabled a variety of machine learning experiences to make distributed teams feel more connected,” Singh noted. “Finding ways to use AI and machine learning to simplify tasks for users is our passion.”

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Here’s your chance to show off your expertise at TechCrunch’s founder summit

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Do you have what it takes to present at TechCrunch Early Stage on April 20 in Boston, Massachusetts? We’re looking for trendsetting, game-changing, later-stage startup founders and ecosystem experts — of every stripe — to apply for the opportunity to share their hard-won expertise at our annual founder summit.

An entrepreneurial bootcamp experience, TC Early Stage connects people in the beginning or early stages of their startup journey with top industry experts for hands-on training. Presenting at this event is an opportunity to align yourself with TechCrunch and position yourself as a thought leader for hundreds of early-stage entrepreneurs. Apply here now.

You have until January 6 to submit an application outlining the content you’d like to present. TechCrunch will vet each application and select the top contenders to participate in an Audience Choice voting round where TechCrunch readers will choose the sessions they want to see most at TC Early Stage.

Our call for outstanding content is officially open, and here are the important dates to keep in mind:

  • Application deadline: January 6
  • Notify Audience Choice participants: January 23
  • Voting period: January 30 through February 17
  • Notify winners: By February  22

If you can deliver content that elicits this kind of attendee feedback, we want to hear from you.

“Early Stage offered a great variety of sessions and speakers — top investors, founders and credible subject-matter experts — who gave unique insights based on personal experience. You get great mentorship through attending the Early Stage sessions. It’s like a mini masterclass in entrepreneurship.” — Ashley Barrington, founder, MarketPearl

Show us your content — apply today!

TC Early Stage, which takes place on April 20, 2023, in Boston, Massachusetts, provides access to essential information, resources and community connections to help nascent entrepreneurs reach their potential. Grab your ticket now — just $149 for the next 30 founders — and join us in Boston!

Is your company interested in sponsoring or exhibiting at TC Early Stage 2023? Contact our sponsorship sales team by filling out this form.

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Amplio helps companies find components when supply chain breaks down

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When Covid shut down much of the world down in 2020, it ended up wreaking havoc on the supply chain. Suddenly companies built for just-in-time production couldn’t find parts they needed to build their products.

Even as Covid subsided, the supply chain woes continued. Veterans of supply management like the founder of startup Amplio watched, and figured there had to be a better way to guard against these kinds of disruptions in the future using software to find parts wherever they were.

Amplio launched last year with that goal in mind, and today the startup announced a $6 million seed to build a system to help track parts shortages. Trey Closson, CEO and co-founder at Amplio says his company’s goal is to build more resilience into the electronic components supply chain.

“We help our customers understand the components that are at highest risk of leading to material shortages, and then we connect our customers to alternative sources of supply to mitigate those shortages,” Closson told TechCrunch.

He knows what he’s talking about. He spent his entire career in supply chain management, and he’s seen firsthand how disruptions can have a negative impact on a business’s ability to function. He blames “Just-in-time production” techniques for the problems we are seeing today.

“The supply chains have been designed for 30 or 40 years to optimize for cost and for the best case scenario, but the reality is that we don’t live in a world of best case scenarios. We live in a world of constant disruptions,” he said.

“The way that our platform works is that we’re connected to our customers’ systems of record or their ERP solutions, and we take in in their bill of materials and their operational data, and then combine that with external datasets to be able to show the customer their ability to source their particular components over the next six to 18 months,” he said.

Amplio parts inventory screen showing which parts could be in danger of having supply issues.

Image Credits: Amplio

What’s more, in cases where the customer isn’t able to source the components, customers can go to the Amplio marketplace to find suppliers or other manufacturers who might have surplus inventory they are trying to sell.

Closson’s most recent job was working at Koch Industries, leading international supply chain for Georgia Pacific, where he was on the front line of the Covid-induced toilet paper shortages. But he decided to focus his startup on electronic components.

“So while supply chain resilience is really critical across the market, we want to focus on the electronics industry, because it has such a tremendous impact on the global economy,” he said. He conceived of and incubated the company as part of a program run by Koch and High Alpha Innovation, the program launched by former Exact Target execs to help startups with enterprise-focused ideas.

The company currently has 6 employees, but plans to expand with the funding (which closed in May). He says as he grows the company, diversity and inclusion is a core building block. “Diversity is one of the core principles for our hiring and in decision making processes. So just from a selfish standpoint, diverse organizations make better decisions and have more creative ideas, and are ultimately more successful,” he said.

Today’s round was led by Construct Capital with participation from Slow Ventures, High Alpha Capital, Flexport Ventures, Alpaca Venture Capital and various industry angels.

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