Connect with us

Technology

Why Toronto won by losing its bid for Amazon’s new headquarters

Editor

Published

on

[ad_1]

Toronto’s bid for Amazon’s second headquarters, known as HQ2, lost out to not just one location, but two — New York and northern Virginia — yet the Canadian city may be better off without the American retailing giant.

Amazon’s initial HQ2 pitch promised as many as 50,000 jobs wherever they ultimately picked. As it turns out, those jobs will be split in two, with 25,000 in each new hub, along with another 5,000 jobs to a third city, Nashville, Tenn.

Some people in Toronto’s tech sector, however, say they were worried Amazon would be a very big fish in a small pond — capable of eating up much of the talent in the pool.

“We already have a significant talent shortage, and Canadian growth companies need the talent that multinationals like Amazon will consume,” said Anthony Lacavera, the founder of Toronto-based Globalive, a company that helps entrepreneurs grow their startups through investment and partnerships in an email.

Toronto’s reputation as a tech hub is growing: it’s thriving off of early investments in artificial intelligence and financial technology, a strong university research community, and an ecosystem that supports startups.

According to commercial real estate and investment firm CBRE, for two years in a row Toronto has been North America’s fastest growing tech market, adding 28,900 tech jobs last year, up 13.6 per cent from the year before.  

But it’s yet to be home to a Canadian-born Amazon equivalent.

The arrival of an 800-pound gorilla like Amazon would be more likely to squash Toronto’s thriving ecosystem than help it grow, said Lacavera, who also founded his own startup in Toronto, WIND Mobile, which later sold for $1.3 billion US.

“Canada needs to build its own global winners and end the branch plant economy once and for all,” Lacavera said.

Selling Toronto

Still, Toronto’s bid laid out why it was “ready to become the home for Amazon’s HQ2.” It promoted Toronto’s strong, diverse and affordable talent, quality of life, competitive corporate tax rates, and the country’s universal health care.

We know that health care costs are top of mind at the company. In January, Amazon teamed up with Berkshire Hathaway and JP Morgan to create a new venture aimed at bringing down health care costs for its employees.

But health care wasn’t the only sales pitch. Organizers touted what Toronto had to offer by bringing together multiple different perks from different places in and around the region.

The city’s pitch had the backing of nearby cities such as Hamilton, the tech hub of Kitchener-Waterloo and many more to tout the abundance of high skilled workers — all of whom could be hired for far less than American workers paid in U.S. dollars would demand.

Toronto’s bid had the backing of other nearby cities that, collectively, are home to almost 8 million people across the region. (Toronto Global)

Markham, Ont., which was part of Toronto’s bid, tried to get Amazon’s attention by adding “Possible Future Home of Amazon HQ2” to its welcome sign.

 

There’s something Toronto didn’t do, though: woo Amazon with financial incentives. 

Even though Amazon was worth more than $1 trillion US earlier this year, as the battle between cities heated up, some tried to lure the company with billions of dollars in tax breaks and other enticements.

In the end, both cities that will share the new Amazon HQ2 were more than willing to ante up to play the game, with New York offering around $1.525 billion US in tax breaks and wage subsidies, and Virginia kicking in $573 million worth of incentives of its own.

“It’s disgusting,” said Richard Florida, who was on the board to craft Toronto’s bid, but resigned in order to speak out against cities that were putting expensive carrots on the table, and to try to convince them to compete on merit only.

However, he says the mayors he spoke with insisted they couldn’t do that.

“If everyone would’ve behaved like Toronto and Ontario, this would’ve been a much better process,” said Florida, likening the competition to American Idol.

An influx of thousands of workers could create costly problems for a city, from driving up housing prices, to crowding public transit.

“If Amazon’s going to come you don’t want to give them anything — you want them to be a partner in addressing many of the issues they’re going to create,” said Florida. 

Incentives that don’t pay off

Cities that compete for professional sports teams often roll out a red carpet and offer incentives such as subsidizing new stadiums. But according to Stanford economics professor Roger Noll, it’s never worth it. 

“In terms of local economic activity, there’s essentially zero benefit,” said Noll.

The Amazon case is more complicated though, because unlike a sports franchise, Amazon will derive most of its revenue from outside the chosen city and attract a high-end labour force that pays more taxes and spends money locally.

“It’s probably better for a community to buy Amazon, than a basketball team … but it’s still a huge amount of money to pay and extremely unlikely to be worth it,” Noll said.

Toronto likely would’ve needed to match the other cities’ massive incentives in order to win, which would’ve been a bad deal for the city, he said.

“It’s never worth multiple billions, and Toronto should be proud of itself that it didn’t win this.” 

Toronto’s consolation prize

Last week, Toronto Mayor John Tory said the city already got its payoff for its Amazon bid: the proposal it posted online has been downloaded more than 17,000 times.

“The other 16,999 that read that book beyond Amazon are people that today are making decisions about coming to Toronto…. This city is a beacon for investment, for people, for companies,” Tory told reporters.

On Tuesday, the mayor added that Toronto’s bid organizers are still in contact with the company and are “pursuing follow-up opportunities,” with Amazon that could lead to more investment down the line.

 

Toronto may have already landed a headquarters of sorts, if the Sidewalk Labs project that plans to transform a neighbourhood in downtown Toronto goes ahead, according to Florida. Sidewalk Labs is a sister company to Google.

“We could have a Google HQ2,” said Florida. “People don’t think of that.” 

If the Sidewalk Labs project is able to address concerns over data privacy and other issues that come up in public consultations, Florida is optimistic that it would benefit Toronto more than an Amazon headquarters. 

“For Toronto’s sake, I think it’s better it ended up this way,” said Florida

[ad_2]

Source link

قالب وردپرس

Technology

Top 5 Analytics Trends That Are Shaping The Future

Editor

Published

on

By

Digital transformation is increasingly becoming the focus for many CIOs around the world today—with analytics playing a fundamental role in driving the future of the digital economy.

While data is important to every business, it is necessary for businesses to have a firm grip on data analytics to allow them transform raw pieces of data into important insights. However, unlike the current trends in business intelligence—which is centred around data visualization—the future of data analytics would encompass a more contextual experience.

“The known data analytics development cycle is described in stages: from descriptive (what happened) to diagnostic (why did it happen), to discovery (what can we learn from it), to predictive (what is likely to happen), and, finally, to prescriptive analytics (what action is the best to take),” said Maurice op het Veld is a partner at KPMG Advisory in a report.

“Another way of looking at this is that data analytics initially “supported” the decision-making process but is now enabling “better” decisions than we can make on our own.”

Here are some of the current trends that arealready shaping the future of data analytics in individuals and businesses.

  1. Growth in mobile devices

With the number of mobile devices expanding to include watches, digital personal assistants, smartphones, smart glasses, in-car displays, to even video gaming systems, the final consumption plays a key role on the level of impact analytics can deliver.

Previously, most information consumers accessed were on a computer with sufficient room to view tables, charts and graphs filled with data, now, most consumers require information delivered in a format well optimized for whatever device they are currently viewing it on.

Therefore, the content must be personalized to fit the features of the user’s device and not just the user alone.

  1. Continuous Analytics

More and more businesses are relying on the Internet of Things (IoT) and their respective streaming data—which in turn shortens the time it takes to capture, analyze and react to the information gathered. Therefore, while analytics programspreviously were termed successful when results were delivered within days or weeks of processing, the future of analytics is bound to drastically reduce this benchmark to hours, minutes, seconds—and even milliseconds.

“All devices will be connected and exchange data within the “Internet of Things” and deliver enormous sets of data. Sensor data like location, weather, health, error messages, machine data, etc. will enable diagnostic and predictive analytics capabilities,” noted Maurice.

“We will be able to predict when machines will break down and plan maintenance repairs before it happens. Not only will this be cheaper, as you do not have to exchange supplies when it is not yet needed, but you can also increase uptime.”

  1. Augmented Data Preparation

During the process of data preparation, machine learning automation will begin to augment data profiling and data quality, enrichment, modelling, cataloguing and metadata development.

Newer techniques would include supervised, unsupervised and reinforcement learning which is bound to enhance the entire data preparation process. In contrast to previous processes—which depended on rule-based approach to data transformation—this current trend would involve advanced machine learning processes that would evolve based on recent data to become more precise at responding to changes in data.

  1. Augmented Data Discovery

Combined with the advancement in data preparation, a lot of these newer algorithms now allow information consumers to visualize and obtain relevant information within the data with more ease. Enhancements such as automatically revealing clusters, links, exceptions, correlation and predictions with pieces of data, eliminate the need for end users to build data models or write algorithms themselves.

This new form of augmented data discovery will lead to an increase in the number of citizen data scientist—which include information users who, with the aid of augmented assistance can now identify and respond to various patterns in data faster and a more distributed model.

  1. AugmentedData Science

It is important to note that the rise of citizen data scientist will not in any way eliminate the need for a data scientist who gathers and analyze data to discover profitable opportunities for the growth of a business. However, as these data scientists give room for citizen data scientists to perform the easier tasks, their overall analysis becomes more challenging and equally valuable to the business.

As time goes by, machine learning would be applied in other areas such as feature and model selection. This would free up some of the tasks performed by data scientist and allow them focus on the most important part of their job, which is to identify specific patterns in the data that can potentially transform business operations and ultimately increase revenue.

Continue Reading

Technology

Waterloo drone-maker Aeryon Labs bought by U.S. company for $265M

Editor

Published

on

By

[ad_1]

Waterloo’s Aeryon Labs has been bought by Oregon-based FLIR Systems Inc. for $256 million, or $200 million US.

The acquisition was announced Monday. 

Dave Kroetsch, co-founder and chief technology officer of Aeryon Labs, says not much will change in the foreseeable future.

“The Waterloo operations of Aeryon Labs will actually continue as they did yesterday with manufacturing, engineering and all the functions staying intact in Waterloo and ultimately, we see growing,” he said.

“The business here is very valuable to FLIR and our ability to sell internationally is a key piece of keeping these components of the business here in Canada.”

Aeroyn Labs builds high-performance drones that are sold to a variety of customers including military, police services and commercial businesses. The drones can provide high-resolution images for surveillance and reconnaissance.

The drones already include cameras and thermal technology from FLIR. Jim Cannon, president and CEO of FLIR Systems, said acquiring Aeryon Labs is part of the company’s strategy to move beyond sensors “to the development of complete solutions that save lives and livelihoods.”

‘A piece of a bigger solution’

Kroetsch said this is a good way for the company to grow into something bigger.

“We see the business evolving in much the direction our business has been headed over the last couple of years. And that’s moving beyond the drone as a product in and of itself as a drone as a piece of a bigger solution,” he said.

For example, FLIR bought a drone company that builds smaller drones that look like little helicopters.

“We can imagine integrating those with our drones, perhaps having ours carry their drones and drop them off,” he said.

FLIR also does border security systems, which Kroetsch says could use the drones to allow border agents to look over a hill where there have been issues.

“We see the opportunity there as something that we never could have done on our own but being involved with and part of a larger company that’s already providing these solutions today gives us access not only to these great applications, but also to some fantastic technologies,” he said.

Aeryon Labs has done a lot of work during emergency disasters, including in Philippines after Typhoon Hagupit in 2014, Ecuador after an earthquake in 2016 and the Fort McMurray wildfire in 2016.

[ad_2]

Source link

قالب وردپرس

Continue Reading

Technology

Inuvik infrastructure may not be ready for climate change, says study

Editor

Published

on

By

[ad_1]

The Arctic is expected to get warmer and wetter by the end of this century and new research says that could mean trouble for infrastructure in Inuvik.

The study from Global Water Futures looked at how climate change could impact Havipak Creek — which crosses the Dempster Highway in Inuvik, N.W.T. — and it predicts some major water changes.

“They were quite distressing,” John Pomeroy, director of Global Water Futures and the study’s lead author, said of the findings.

Researchers used a climate model and a hydrological model to predict future weather and climate patterns in the region. They also looked at data gathered from 1960 to the present. 

If greenhouse gas emissions continue at their current rate — which Pomeroy said they are on track to do — the study projects the region will be 6.1 C warmer by 2099 and precipitation, particularly rain, will increase by almost 40 per cent.

The study also found that the spring flood will be earlier and twice as large, and the permafrost will thaw an additional 25 centimetres. While the soil is expected to be wetter early in the summer, the study said it will be drier in late summer, meaning a higher risk of wildfires.

John Pomeroy is the director of Global Water Futures. (Erin Collins/CBC)

“The model’s painting kind of a different world than we’re living in right now for the Mackenzie Delta region,” Pomeroy said.

He noted these changes are not only expected for Havipak Creek, but also for “many, many creeks along the northern part of the Dempster [Highway].”

Pomeroy said the deeper permafrost thaw and a bigger spring flood could pose challenges for buildings, roads, culverts and crossings in the area that were designed with the 20th century climate in mind.

He said the projected growth of the snowpack and the spring flood are “of grave concern because that’s what washes out the Dempster [Highway] and damages infrastructure in the area.”

Culverts and bridges may have to be adjusted to allow room for greater stream flows, Pomeroy said. And building foundations that are dependent upon the ground staying frozen will have to be reinforced or redesigned.

Pomeroy said the ultimate solution is for humans to reduce greenhouse gas emissions.

“This study is the future we’re heading for, but it’s not the future we necessarily have if we can find a way to reduce those gases,” he said.  

“It’d be far smarter to get those emissions under control than to pay the terrible expenses for infrastructure and endangered safety of humans and destroyed ecosystems.”

[ad_2]

Source link

قالب وردپرس

Continue Reading

Chat

Trending