We're used to discussing M&As in the tech sector, but splitting a company into two parts is a rarity. Analysts always have to ask who benefits and how? Shareholders? Other stakeholders, including customers? Employees? Why does this not happen more often? Surely businesses outgrow their markets' demands, but more often than not a business will sell itself to a suitor rather than splitting.

Among the highlights of Amazon Web Services re:Invent are three announcements that strengthen its presence in the enterprise hybrid IT infrastructure market: AWS is teaming with Verizon to deliver 5G edge cloud computing; the first AWS Local Zone is located in Los Angeles; and AWS Outposts are generally available. These moves "close some huge competitive gaps," observed tech analyst Rob Enderle.

The Pentagon has awarded its $10 billion contract for cloud computing to Microsoft. The program -- which goes by the acronym "JEDI" for "Joint Enterprise Defense Infrastructure" -- has been attracting vendors like a dog attracts fleas for several years. It has been marked by fierce litigation too, so the award may not be the end of it. Oracle sued over the process, claiming it was unfair.

Oracle came late to cloud computing, joining the fray only after competitors like Microsoft and Salesforce had established dominant positions, and newcomer Amazon Web Services leaped from a standing start to a position of dominance. Amazon is so strong in the cloud that it is on the cusp of extinguishing the last challenges to its win of the 10-year $10 billion Pentagon JEDI procurement.

There were 5,524 store closures in the U.S. alone last year. There is no doubt that the retail industry increasingly is moving to e-commerce. For mid-sized retail companies, this trend can be a major opportunity to gain market share in their local areas and continue to grow in an industry dominated by Amazon and other giants. However, this growth requires a strong digital transformation strategy.

Users of a multi-cloud storage strategy may be twice as likely to face a security breach as those that use hybrid or single clouds, suggests a report from UK-based security specialist Nominet. Fifty-two percent of survey respondents who adopted a multi-cloud approach suffered a data breach over the past 12 months, compared to 24 percent of hybrid cloud users, and 24 percent of single-cloud users.

Google Cloud and VMware have announced Google Cloud VMware Solution by CloudSimple, a service that lets organizations run VMware workloads in Google Cloud Platform on premises, in a hybrid architecture, or in the cloud. "Hybrid clouds are key, with only 17-19 percent of workloads in the cloud," noted Ray Wang, principal analyst at Constellation Research.

CRM systems are the lifeblood of many businesses, and the volume of customer data within them keeps growing as companies digitize more processes. That data often is not being used to its full potential, beyond basic reporting on sales metrics and marketing campaigns. With the advent of mainstream machine learning and artificial intelligence technologies, this is all changing, and quickly.

It's easy to understand why so many retail organizations have moved their infrastructure to the cloud. Cloud-based architecture allows provisioning nearly infinite compute instances on-demand in minutes. There is no need for upfront licensing or infrastructure costs, meaning a faster ROI can usually be realized. Best of all are the unmatched agility and scalability of the cloud.

Oracle narrowly missed its number last quarter, so it was good to see the company come roaring back -- it made a lot of money. More importantly, many analysts have conceded that Oracle has reached a point in its infrastructure deployment where it can mount a serious challenge to other providers and supply the needed cloud services for its ERP and cloud database businesses.

Oracle has filed a suit in federal court over the $10 billion Pentagon JEDI contract to be awarded to a single vendor. Oracle claims that the single-vendor award is unfair and illegal, a claim it first filed with the GAO, or Government Accountability Office. The suit followed the GAO's denial of Oracle's claim. My first instinct was to call this legislative entrepreneurship.

Amazon introduced AWS Outposts at its AWS re:Invent conference in Las Vegas. The new system, which provides AWS-branded boxes for use in traditional data centers, will allow the company to make advances into the world of on-premises storage, taking on legacy hardware vendors including Cisco, Dell, and Hewlett Packard Enterprise. Outposts technology can run on rival vendors' data center equipment.

Andy Jassy, CEO of Amazon Web Services, announced that AWS customers would be off all Oracle databases by the end of 2019 and running on one of Amazon's database products. This is not the first time the market has heard something like this, but this time could be different. The statement comes on the heels of Amazon spending significant coin on Oracle licenses a few months ago.

The LF Deep Learning Foundation has announced the availability of the first software from the Acumos AI Project. Dubbed "Athena," it supports open source innovation in AI, ML and DL. The goal is to make critical new technologies available to developers and data scientists everywhere. Launched earlier this year, Acumos is part of a Linux Foundation umbrella organization.

For all of the dazzle of its rapidly evolving software portfolio, which includes a self-monitoring and self-patching database that also configures itself, as well as numerous cloud applications, Oracle has begun showing its credibility as a hardware vendor. Hardware has commoditized and will not return to the prominence it had in the early days of the tech era.

Markets grow at the margins. This bit of sage advice was given to me at the start of my analyst career, and it has kept me in good nick for nearly two decades. Of course the focus has drifted over time but that's the point: The CRM market has evolved, and the job of an analyst is to make sense of the evolution. Oracle OpenWorld 2018 held in San Francisco this week is a laboratory for the margin.

When we write the history of the IT era, the big factor that has played an important but not well recognized role will be hardware -- specifically, the Oracle Exadata appliance that puts databases into memory. All of the cloud software starting with the autonomous database on view this week at OpenWorld would be vastly different if the database was still running primarily on disk drives.

Significant Q4 wins and earnings numbers reflect the strength of Oracle's resurgence as a cloud company. At its earnings call earlier this week, CEO Mark Hurd mentioned some big names -- including Johnson & Johnson, the Cleveland Clinic, Baylor University and AT&T -- that made significant commitments to Oracle in the quarter. For FY2018, total revenues were up 6 percent compared with fiscal 2017.

Although Oracle was one of the last major enterprise software vendors to move to the cloud, it has embraced the idea of creative destruction in breathtaking ways. With BYOL -- Bring Your Own License -- the company has inspired a movement of its traditional software customers to its infrastructure cloud. It continued the translation exercise with Oracle LaunchPad, a new online learning platform.

Suse has launched Suse Linux Enterprise 15, its latest flagship operating platform. SLE 15 bridges traditional infrastructure technologies with next-generation software-defined infrastructure, the company said. Suse Manager helps users meet management challenges created by technology advancements such as software-defined infrastructure, cloud computing and containers.

rate.io has introduced a commercial Machine Data Platform, along with a new version of its open source SQL database for the Internet of Things and machine data. The company also announced an US$11 M Series A funding round. The Machine Data Platform is Crate.io's first major commercial venture following last year's initial steps toward selling services around its free database.

News flash: Private cloud economics can offer more cost efficiency than public cloud pricing structures. Private, or on-premises, cloud solutions can be more cost-effective than public cloud options, according to a report by 451 Research and Canonical. That conclusion counters the notion that public cloud platforms traditionally are more cost-efficient than private infrastructures.

Red Hat has launched its Fuse 7 cloud-native integration solution and introduced Fuse Online, an alternative iPaaS. Red Hat Fuse is a lightweight modular and flexible integration platform with a new-style enterprise service bus to unlock information. It provides a single, unified platform across hybrid cloud environments for collaboration between integration experts, application developers and business users.

The U.S. government has modernized telecom and supporting IT twice within the last 20 years -- but not without controversy, delays and costly project management. A third modernization currently is under way, under the direction of the federal GSA. The potential value of contracts issued to vendors under the Enterprise Infrastructure Solutions program is $50 billion over 15 years.

Oracle's most recent financial report reveals some hints about its future. Oracle has posted some very impressive numbers as its cloud computing products and services have taken off, and the recent Q2 reporting is a fine reference point. From the company's Q2 announcement: Cloud SaaS revenues were up 55 percent; PaaS plus IaaS revenues were up 21 percent; total cloud revenues were up 44 percent.

Microsoft has launched a raft of new Kubernetes-related projects, demonstrating its growing commitment to the technology. Among them are a new version of its experimental Azure Container Instances for Kubernetes, the Virtual Kubelet. Microsoft also entered a collaboration with Heptio on a new disaster recovery solution. The Virtual Kubelet builds on Microsoft's earlier ACI announcement.

CoreOS on Tuesday announced the release of Tectonic 1.8, a Kubernetes container management platform. Tectonic enables enterprises to deploy key automation infrastructure components that function like managed cloud services without cloud vendor lock-in. The CoreOS Open Cloud Services Catalog offers an alternative to cloud vendors' proprietary services and APIs.

IBM has announced IBM Cloud Private, a software platform that allows enterprise customers to run applications and store critical data in an on-premises, private cloud environment. The new service employs a Kubernetes-based container architecture that supports both Docker containers and Cloud Foundry. IBM also introduced new container-optimized versions of core enterprise software.

The Cloud Foundry Foundation has launched Container Runtime as the default deployment and management platform for containers using Kubernetes and BOSH. The foundation announced Container Runtime at its annual European user conference. Cloud Foundry is an open source Platform as a Service offering used for building and managing applications in the cloud or in data centers.

Red Hat on Tuesday announced the launch of Red Hat Enterprise Linux for SAP Solutions, a new platform that combines two existing systems for analytics and data management into a single offering. The new platform combines the existing Red Hat Enterprise Linux for SAP Applications and Red Hat Enterprise Linux for SAP HANA into a single, consolidated platform.