Monday, December 31, 2018

Echo Wall Clock review

This was the year Amazon went all-in on the Alexa. September saw the announcement of a new Echo Dot, Show and Plus, a subwoofer, an audio input device, an auto dongle and an amplifier. That would have been plenty, but the company also started dipping its toes into the other side of things.

2018 also found Amazon experimenting in the connected device category — namely a microwave and wall clock (oh, and a singing fish, too). It’s a strange move on the face of it. After all, there are countless companies currently vying for a small slice of that mindshare.

But Amazon’s got a few key things going for it. For one, the company stands to gain from building products that exist solely to complement its Echo devices. For another, it’s able to sell products at — or close to — cost.

The Echo Wall Clock benefits quite a bit for both of these factors. It’s $30 device that’s essentially useless without an Alexa device. In fact, Alexa is required to set the time. That’s a downside in the off-chance you happen along one of these products without an Echo nearby. But it’s handy when it comes to set up.

Find a spot within 30 feet of a compatible device (Echo, Dot, Show, Plus, E Spot or Input.). Open the back. Pop in four AA batteries (included). Tell Alexa, “Set up my Echo Wall Clock.” Hold the little blue button on the back until the front light turns a kind of pulsating orange. Alexa will go to work, and when everything’s good to go, that light will turn blue.

I initially attempted to set up the device on my office Wi-Fi. Never a great idea with these sort of connected products. Large enterprise networks are a crapshoot, and the two devices were off again, on again. Assuming you’ve got a similar set-up, you’re going to want to keep the Wall Clock (and, for that matter, most Alexa devices) at home.

Once I switched to a personal network (via a MiFi), things went much more smoothly. Alexa will set the clock to your time zone. Bonus: It will automatically fall back and spring ahead when there’s a time change — certainly a leg up on most wall clocks.

There are a couple of things worth noting here, before we go any deeper. First: the Wall Clock is, for lack of a better term, cheap looking. It’s big and it’s plasticky. There’s no front glass. It is, honestly, the sort of design you’d expect from a wall clock made by Amazon. There’s no razzle dazzle here. It’s a simple-looking clock with a simple design. The upshot is it’s minimalist enough to fit in with most living rooms and kitchens.

That simplicity also extends to its feature set, which is currently mostly limited to timers. The 60 minute markers that line the edge are actually all individual LEDs. Tell Alexa to, say, “set a 10-minute timer” and 10 minute hands will light up and then individually go dark to count down the  time. Once the countdown is over, the full diameter will flash slowly until you tell Alexa to stop.

And that’s it, really. Timers and alarms. The Wall Clock is one of the first passive Alexa devices from Amazon. Your Echo is really doing all of the heavy lifting, including listening and talking. You can’t, say, ask the clock for the time or the weather, which is why you need an Echo close by. It also doesn’t emit a sound when the alarm goes off. Of course, that means a cheaper price — and much longer battery life.

The Echo Wall Clock isn’t a necessary device, but it could prove a handy one. If you cook a lot, for instance, it’s nice having a large visual reference in addition to the Echo’s built-in timers. Beyond that, however, I’m struggling to come up with too many scenarios in which it feels indispensable. And honestly, I’m not holding my breath in expectation that Amazon will be bringing more to the table here.

 

The device succeeds more as a proof of concept for the ways Alexa and compatible devices can push the boundaries of the smart home. There’s nothing particularly compelling here for most consumers — but at $30, perhaps it doesn’t have to be.



from Amazon – TechCrunch https://techcrunch.com/2018/12/31/echo-wall-clock-review/

Report: Amazon is planning a Whole Foods expansion to benefit Prime Now

Amazon is planning a Whole Foods expansion in the U.S., according to a report by The Wall Street Journal published this weekend. The goal is to put more customers within the range of Amazon’s two-hour Prime Now delivery service, including those in suburban areas outside cities, as well as those in regions where the grocer has yet to establish a presence.

Currently, Amazon’s Prime Now delivery service offers two-hour delivery in over 60 U.S. cities, and thirty minute-plus grocery pickup in nearly 30 cities. Amazon is planning to expand those services to almost all its 475 Whole Foods stores, the report said, citing sources.

The retailer will also continue to use perks for Prime members to acquire and retain customers, much as it does today.

Because of its lack of a brick-and-mortar footprint, many U.S. consumers living in the outskirts of cities or in more rural areas don’t have access to Amazon’s Prime Now two-hour delivery service. However, they do have access to Walmart stores, which today offering their own online grocery shopping service with pickup and delivery options in a number of markets.

Walmart says that 140 million customers shop its stores weekly, and 90 percent of Americans today live within 10 miles of one of its locations. That makes it a significant challenger to Amazon in terms of offering fast delivery and pickup options. It also doesn’t require an annual membership.

Other companies are competing with Amazon on same-day delivery, too, including Instacart and Target’s Shipt. Target is also rolling out a curbside pickup service called Drive Up, and is planning to expand Shipt’s assortment and reach in 2019.

The WSJ report didn’t confirm store locations, but did note Amazon was scouting retail spaces in parts of Idaho, southern Utah and Wyoming. Some of these were slightly larger than average Whole Foods stores, at 45,000 sq ft. – which hints at their ability to operate as a hub for delivery and pickup, in addition to being a traditional grocery store.

 



from Amazon – TechCrunch https://techcrunch.com/2018/12/31/report-amazon-is-planning-a-whole-foods-expansion-to-benefit-prime-now/

2019 looks to continue another lights out year for fintech startups

This time last year, the crypto bull market stole the spotlight. In the midst of bitcoin’s wild run, we announced the Matrix FinTech Index in recognition of the top 10 publicly traded U.S. fintechs quietly surpassing $100 billion in total market capitalization. We predicted that in 2018, the fintechs would prove to be the more relevant disruptors and their equity value would continue to outpace the incumbents.

As we look back, this prediction proved to be true. The market cap of the Matrix FinTech Index grew 50 percentage points in 2018, far outpacing the incumbent financial service giants and the S&P 500. Looking ahead to 2019, we predict that the fintechs will continue to steal the show—creating innovative tech-enabled products, providing access to underserved demographics, and putting consumers first.

The FinTech Index continues to outperform in 2018, though volatility has increased

In this 2018 year-end edition of the Matrix FinTech Index[1] , we are excited to provide a refreshed view of last year’s index. As a quick reminder, the index is a market-cap weighted index that tracks the progress of a portfolio of 10 leading public fintech companies. For comparison, we also included another portfolio of 10 large financial services incumbents (companies like JP Morgan and Visa), as well as the S&P 500. In 2018, the total market cap of the top 10 publicly traded U.S. fintechs grew to nearly $170B and the 2-year returns of the fintechs are now at 133%–100 percentage points higher than the 2-year returns for the incumbents.

Definition: Matrix Partners considers “fintechs” to be venture-backed organizations that are (a) technology-first companies that leverage software to compete with traditional financial services institutions (e.g. banks, credit card networks, insurers, etc.) in the delivery of traditional financial services (e.g. lending, payments, investing, etc.) or (b) software tools that better enable traditional finance functions (e.g. accounting, point-of-sales systems, etc.)

Compared to 2017, volatility increased in 2018. While part of this is the broader state of the equity markets in 2018, it’s worth noting a few specific headwinds (e.g. the TIO security breach that impacted PayPal, Amazon launching Amazon Pay) as well as a few general macro concerns like rising interest rates. But looking ahead to 2019, all 10 of the publicly traded fintechs are expected to continue to have double-digit growth. The only incumbents expected to squeak into double-digit territory in 2019 are card issuers like Visa (11%) and Mastercard (13%) –enabled, in part, by the growth of fintech payment companies like Square and PayPal.

2019 Prediction: The Matrix FinTech Index will deliver 200% returns over the three years ending in December of 2019, outperforming the incumbents and S&P 500 by at least 150 percentage points.

Liquidity is starting to trickle in for private fintech companies

While the FinTech Index performed well on the public markets in 2018, we also saw some very promising liquidity events for privately held companies. In 2017, there were only 3 fintech exits in the U.S. over $100M, totaling just over $700M in value. In 2018 that number grew by a factor of 10 to over $7B in value. More than half of that value came from the GreenSky IPO, but there were also a number of significant M&A events. We expect M&A activity to increase as financial services incumbents acquire fintech companies in an effort to stay competitive. And we continue to believe that the fintech sector will prove to be one of the most fruitful sectors for venture returns in the 15 years following the 2008 financial crisis.

2019 Prediction: Total aggregate value for fintech liquidity events will exceed $10B in one year for the first time ever.

The fintech unicorn pipeline is primed for some big outcomes

What’s even more exciting than 2018’s liquidity is the backlog of privately held fintechs, led by Stripe, that are valued at over $1B. There are now 20 fintech unicorns. In fact, there are more fintech unicorns than any other industry vertical in the Unicorn Club. More than 50% of these raised big growth rounds in 2018 and five of them (Circle, Plaid, Brex, Root and LendingHome) made their debut on the U.S. fintech unicorn list for the first time. The expansion of this list shows that there is no shortage of high-potential areas to disrupt in financial services.

2019 Prediction: Total aggregate value for fintech unicorns will cross $90B and the total number of fintech unicorns will begin to close in on 30.

The next wave of value creation from younger fintechs will be even bigger than the first

Despite these successes on the public markets, in liquidity events and among the unicorn ranks, we are still in the very early innings of the fintech revolution. 2019 will be even more impressive than 2018 as there are an additional 40 U.S. fintechs that have raised more than $100M in equity funding and are on the brink of entering the unicorn club. As many of these companies make that transition, they will sprout another wave of more interesting fintech companies as early employees go on to start their own companies in a virtuous wave of value creation.

We expect these newcomers, and others aspiring to follow in their footsteps, will threaten to end the rule of the financial establishment. They will continue to offer better financial products to consumers, empower more efficient payment channels, and create a more open financial system. At the same time, the incumbents will continue to struggle with innovation, hamstrung by their scale, regulatory burdens, and decades of accumulated technical debt.

Make no mistake. What new fintech companies are attempting is very ambitious and incredibly difficult to achieve. The existing ecosystem of incumbent providers dates back 150 years and represents some of the largest global financial institutions. That said, digital transformation is afoot and the financial service industry will not be spared.



from Amazon – TechCrunch https://techcrunch.com/2018/12/31/2019-looks-to-continue-another-lights-out-year-for-fintech-startups/

Hilbert’s list

In 1900, David Hilbert published a list of 23 problems that he proposed would be the important ones for mathematicians to solve in the upcoming century. That list led to a focused effort that lasted a century, and the vast majority of the problems have been fully or partially solved. Ignoramus et ignorabimus is a foolish statement. We can know, and one day, we will.

Technology (the technology of connection, of devices and of knowledge) can create a surplus. The cost of light, of transport and of food has dropped by orders of magnitude in just a few lifetimes. Most of us waste electricity, water and other essentials in ways that would have been astonishing just a generation ago. Privileged populations go to the doctor for illnesses that wouldn’t even be a topic for discussion among those with less access to the surplus that we’ve created in access to healthcare.

Surely, we can build a better future with technology instead of focusing on autonomous drone delivery of a latte 9 blocks away in San Francisco.

As we enter a new year, one in which technology promises to move faster than ever, it’s worth considering what our 23 problems might be. (Hilbert left one off his list, and others have created very different lists–there’s no right answer).

A personal list is a great place to start (because, after all, you’ve solved much of what confronted you a decade ago). Technology doesn’t have to be high-tech. It can simply be the hard work of finding generous solutions to important problems, big or small.

Our next steps might be far more effective than simple resolutions, which are easily ignored or pushed aside. We can work toward dignity, toward access, toward seeing the world as it is…

As citizens, creators and consumers, each of us can also propose a more global list. To get you started, here are some that come to mind for the next decades. Feel free to publish your own list, which is likely to be better informed and more nuanced, but here you go…

[This list seems ridiculous until you realize that in the last few generations, we created vaccines, antibiotics, smartphones, GPS and the Furby].

1. High efficiency, sustainable method for growing sufficient food, including market-shifting replacements for animals as food
2. High efficiency, renewable energy sources and useful batteries (cost, weight, efficiency)
3. Effective approaches to human trafficking
4. Carbon sequestration at scale
5. Breakthrough form for democracy in a digital age
6. Scalable, profitable, sustainable methods for small-scale creators of intellectual property
7. Replacement for the University
8. Useful methods for enhancing, scaling or replacing primary education, particularly literacy
9. Beneficial man/machine interface (post Xerox Parc)
10. Cost efficient housing at scale
11. Useful response to urban congestion
12. Gene therapies for obesity, cancer and chronic degenerative diseases
13. Dramatic leaps of AI interactions with humans
14. Alternatives to paid labor for most humans
15. Successful interactions with intelligent species off Earth
16. Self-cloning of organs for replacement
17. Cultural and nation-state conflict resolution and de-escalation
18. Dramatically new artistic methods for expression
19. Useful enhancements to intellect and mind for individuals
20. Shift in approach to end-of-life suffering and solutions for pain
21. Enhanced peer-to-peer communication technologies approaching the feeling of telepathy
22. Transmutation of matter to different elements and structures
23. Off-planet outposts

It’s going to get interesting. Especially if we can imagine it.

       


from Seth Godin's Blog on marketing, tribes and respect https://feeds.feedblitz.com/~/589888700/0/sethsblog~Hilberts-list/

Sunday, December 30, 2018

Creating a useful spec

If you want someone to help, you’ll do better with a spec. It lists just four things:

  1. What is the problem to be solved?
  2. How are we going to solve it?
  3. How can we test that the thing we built matches what we set out to build?
  4. How will we know if it’s working?

While there are only four steps, the specificity of each step is essential. The spec for a 787 jet, for example, leaves very little room for argument about what’s being created. On the other hand, “I’ll know it when I see it,” isn’t at all helpful.

If you’re not spending at least 5% of your project budget on the spec, you might be doing it wrong.

       


from Seth Godin's Blog on marketing, tribes and respect https://feeds.feedblitz.com/~/589775378/0/sethsblog~Creating-a-useful-spec/

Saturday, December 29, 2018

Installing the stupid filter

I’ve never once had a meeting at 3 am. Not once.

My iCal is apparently unaware of this. If I type “3” into the time box on my calendar, it blithely defaults to “am”.

A woman left a tip of more than $5,000 at a kebab shop in Switzerland, because she typed her PIN (5650) when the little card reader was asking her for her tip instead. Of course, she had never left a tip approaching this amount before, but the device was missing a stupid filter.

“Are you sure?” is something humans ask all the time. If you go to an ethical plastic surgeon and announce, through drunken tears, that you want a new nose, new lips, new hips and a skin peel, all at once, she’ll not only ask if you’re sure, but she’ll send you home to think about it first.

We keep hearing about how AI is going to take all our jobs. Perhaps it should begin with the job of asking if we’re sure.

       


from Seth Godin's Blog on marketing, tribes and respect https://feeds.feedblitz.com/~/589658526/0/sethsblog~Installing-the-stupid-filter/

Friday, December 28, 2018

Smart speakers hit critical mass in 2018

We already know Alexa had a good Christmas – the app shot to the top of the App Store over the holidays, and the Alexa service even briefly crashed from all the new users. But Alexa, along with other smart speaker devices like Google Home, didn’t just have a good holiday — they had a great year, too. The smart speaker market reached critical mass in 2018, with around 41 percent of U.S. consumers now owning a voice-activated speaker, up from 21.5 percent in 2017.

According to a series of reports from RBC Capital Markets analysts released in December, the near doubling of the adoption rate for smart speakers in the U.S. was driven by growth in both Alexa and Google Home devices, while Apple’s HomePod played only a small role.

The firm found that U.S. penetration of Alexa-enabled devices reached 31 percent this year, compared with 41 percent overall for smart speakers.

It also forecast that Alexa would generate $18 billion to $19 billion in total revenue by 2021 – or ~5 percent of Amazon’s revenue –  through a combination of device sales, incremental voice shopping sales, and other platform revenues. In the U.S., there are now over 100 million Alexa-enabled devices installed – a key milestone for Alexa to become a “critical mass platform,” the report noted.

RBC additionally called out Amazon’s progress with Alexa’s development, with launches like Alexa Guard, which listens for break-ins and smoke detector alarms; plus new features like local voice control for when the internet is down; location-based reminders; advanced routines; email integrations; expanded calling options; and many others.

Alexa’s third-party app ecosystem also grew in 2018, with 150 percent year-over-year growth in skills to reach over 60,000 total Alexa skills by year-end. That’s up from 40,000 skills in May; 25,000 in Q3 2017; and just 5,000 two years ago.

Google Home also gained traction in 2018, with U.S. penetration for Google devices growing to 23 percent, up from 8 percent in 2017. Each household owns around 1.7 devices, which leads a Google Home install base of around 43 million in the U.S., and around 9 million in other Google Home markets, the forecast said.

However, the report doesn’t see as much revenue coming in from Google Home over the next few years, compared with Alexa. Instead, it estimates that Google Home generated $3.4 billion in revenue this year, and will grow that to $8.2 billion by 2021.

But combined with Google’s other hardware products like Pixel, Nest, and Chromecast, the hardware suite will have generated approximately $8.8 billion in 2018, and will grow to $19.6 billion in 2021.

This is the first year the analysts asked about Apple’s HomePod in the consumer survey, and they found its share of the U.S. smart speaker market remains small. Amazon has a 66 percent share to Google’s 29 percent. HomePod had 5 percent, it said.



from Amazon – TechCrunch https://techcrunch.com/2018/12/28/smart-speakers-hit-critical-mass-in-2018/

Go find a ladder

While it might be fun (or appear expedient, or brave, or heroic) to try to scale a cliff with no tools, it turns out that ladders are a more effective way to level up.

When it’s time to drive a nail, a hammer is a lot more useful than a rock. Even if you have to invest in obtaining one.

Often, we spend most of our time throwing ourselves at the wall instead of investing the time to find a useful ladder instead.

Perhaps, instead of restating our audacious goals, we spent more time finding useful tools–insights, skills, trust, attention, access–instead.

It’s worth the search.

       


from Seth Godin's Blog on marketing, tribes and respect https://feeds.feedblitz.com/~/589519310/0/sethsblog~Go-find-a-ladder/

Grab raises fundraising target to $5B as Southeast Asia’s ride-hailing war heats up

Southeast Asian ride-hailing firm Grab is aiming to start the new year with a bang and an awful load of bucks. The company, which acquired Uber’s local business earlier this year, is planning to raise as much as $5 billion from its ongoing Series H round, up from an original target of $3 billion, a source with knowledge of the plan told TechCrunch.

Grab declined to comment for this story.

That Series H round has been open since June. Already, it has seen participation from the likes of Toyota, Microsoft, Booking Holdings and Yamaha Motors who have pushed it close to the original $3 billion target. Prior to raising $150 million from Yamaha, Grab said the round stood at $2.7 billion. While it is true that the company first announced that it was “on track to raise over $3 billion by the end of 2018,” it is not public knowledge that it has set its sights as high as $5 billion.

A big part of that expansion is a planned investment from SoftBank’s Vision Fund which, as TechCrunch reported last week, is aiming to pump up to $1.5 billion into the business. Adding that to the $3 billion total appears to leave a further $500 million allocation for other investors to take up.

Grab is already the most capitalized startup in Southeast Asia’s history having raised around $6.8 billion to date from investors, according to data from Crunchbase. The company was last valued at $11 billion — when Toyota invested the initial $1 billion in this Series H six months ago — and it is unclear how much that valuation will increase when the round is completed.

The company is also one of the widest reaching consumer internet companies in Southeast Asia, a region of 650 million consumers. Grab claims over 130 million downloads and more than 2.5 billion completed rides to date, while it has expanded into fintech and it is going beyond ride-hailing app to offer Southeast Asia a ‘super app’ in the mold of Meituan in China. On the financial side, Grab is assumed to not yet be profitable. But it has said that it made $1 billion in revenue and that it projects that the figure will double in 2019.

Buying Uber’s business made it the dominant ride-sharing operator in the region — a position that saw it pay fines in Singapore and the Philippines — but Uber’s exit also saw Go-Jek, a rival in Indonesia, step up and expand its business into new markets. Go-Jek — which is backed by the likes of Tencent, Meituan and Google — entered Vietnam in August and it has recently launched in Thailand and Singapore as it bids to step into Uber’s shadow.

With Go-Jek aiming to raise $2 billion of its own, it certainly looks like Grab’s extension of its already-enormous Series H round is aimed at increasing its war chest as the competition intensifies in post-Uber Southeast Asia.



from Microsoft – TechCrunch https://techcrunch.com/2018/12/28/grab-5-billion/

Thursday, December 27, 2018

New e-commerce restrictions in India just ruined Christmas for Amazon and Walmart

The Indian government is playing the role of festive party pooper for Walmart and Amazon after it announced new regulations that look set to impede the U.S. duo’s efforts to grow their businesses in India.

Online commerce in the country is tipped to surpass $100 billion per year by 2022 up from $35 billion today as more Indians come online, according to a report co-authored by PwC. But 2019 could be a very different year after an update to the country’s policy for foreign direct investment (FDI) appeared to end the practice of discounts, exclusive sales and more.

The three main takeaways from the new policy, which will go live on February 1, are a ban on exclusive sales, the outlawing of retailers selling products on platforms they count as investors, and restrictions on discounts and cashback.

Those first two clauses are pretty clear and will have a significant impact on Amazon — which has pumped some $5 billion into India — and Walmart, which forked out $16 billion to buy India-based Flipkart.

Both online retailers have been able to make a splash by tying up with brands for exclusive online sales, particularly in the smartphone space where, for example, Amazon has worked with Xiaomi and Flipkart has collaborated with Oppo. The new guideline would appear to end that practice, while adding further restrictions to complicate relationships with vendors. From February, brands will be forbidden from selling more than 25 percent of their sales via any single e-commerce marketplace.

Walmart bought Flipkart for $16 billion, but already both founders of the Indian company have left [Photo by AFP/Getty Images]

Beyond restricting companies like Oppo — Xiaomi prioritizes its own Mi.com site for sales — that 25 percent ruling is a headache for Amazon, which operates a number of joint ventures with Indian retailers. Those JVs were designed to circumvent a 2016 ruling that prevented foreign e-commerce businesses from owning inventory, but now they seem outlawed.

Cloudtail India (a 49:51 JV between Amazon and Catamaran Ventures) is Amazon’s biggest seller while another major one is Appario Retail, a collaboration with Patni Group. Together, both sell more than 25 percent of product on Amazon, use exclusive deals and are part-owned by Amazon. That’s three strikes.

Those rules will have Amazon and Walmart-Flipkart working to find alternatives, but there’s more with restrictions on discounts and cashback offers, which could massively cramp the appeal of online commerce, which has been to undercut brick and mortar retailers with heavy subsidies.

Here’s the relevant part of the note:

E-commerce entities providing marketplace will not directly or indirectly influence the sale price of goods or services and shall maintain level playing field…

Cash back provided by group companies of marketplace entity to buyers shall be fair and non-discriminatory.

Exactly what constitutes a “level playing field” or “fair” may be open to interpretation, but clearly this update gives offline retailers a route to protest pricing on online retail sites.

The first thought is that these new updates are focused on the core business model tenants that make e-commerce what it is today.

“It will kill competition and there will be nothing for online retailers to differentiate on,” Amarjeet Singh, a partner at KPMG, href="https://qz.com/india/1508340/indias-new-e-commerce-fdi-rules-may-hurt-amazon-flipkart/"> told Quartz in a comment.

The new regulation is widely seen as a response to concerns from smaller sellers, who feel marginalized and powerless compared to larger organizations. Now, with capital-intensive policies such as discounts, exclusive sales relationships and strategic investment off the table, smaller players will gain a foothold and be able to do more from e-commerce, that’s according to Kunal Bahl, CEO of Snapdeal — a niche e-commerce firm that once competed head-to-head with Flipkart and Amazon.

It’s shaping up to be a very different year for e-commerce in India in 2019.



from Amazon – TechCrunch https://techcrunch.com/2018/12/27/amazon-walmart-india-e-commerce-restrictions/

The Marketing Seminar returns

In just about a week, we open the doors for the sixth session of The Marketing Seminar. If you’ve read This Is Marketing, you have an idea of the content, but you might not be familiar with the extraordinary cohort, the innovative learning approaches and the measurable transformations that happen inside. Some of our alumni have been back three times.

The last time we opened a marketing seminar was almost eight months ago, so this is a great chance for you to level up.

If you share your email address with us at The Marketing Seminar, we’ll send you a note when it re-opens in about a week.

More than 6,600 people have benefitted from this new approach to marketing (and to learning). Ask someone who’s tried it.

Enjoy your end-of-year break, and we’ll see you there.

       


from Seth Godin's Blog on marketing, tribes and respect https://feeds.feedblitz.com/~/589375156/0/sethsblog~The-Marketing-Seminar-returns/

Wednesday, December 26, 2018

Alexa crashed on Christmas Day

Amazon this morning said its Alexa devices were among the holiday season’s best-sellers, particularly the Echo and Echo Dot. But the influx of new users setting up their devices for the first time on Christmas Day appeared to be more than Alexa could handle. The service crashed briefly on Christmas, as thousands of new Alexa device owners tried to connect their Echo to Amazon’s servers around the same time.

The Guardian first reported the Alexa outage, which began around 10 AM GMT and led existing Echo owners to complain they were unable to use their devices for regular tasks like playing music or smart home controls, for example.

Others said they were unable to set up their device, despite not having any other internet or home Wi-Fi issues, which seemed to point to a server-side outage.

Amazon’s Twitter account noted the issues were isolated to Europe, saying at 8:43 AM EST (1:43 PM GMT): “Over the past two hours some Echo devices in Europe have had intermittent connections.” The outage was resolved by the time the account had responded, meaning it had only lasted a couple of hours.

An Amazon spokesperson also confirmed the outage to TechCrunch.

“For a short period yesterday morning we had an issue that intermittently impacted some Alexa customers’ ability to interact with the service,” the spokesperson said. “The Alexa service is now operating normally.”

Amazon declined to offer details on what caused the outage, or explain how it was resolved. Likely, it was related to the increased number of requests.

The website Down Detector had also spotted troubles with Alexa which impacted Europe, with a peak of 2,183 reports coming in at the height of the outage. The reports then tapered off a couple of hours later.

This isn’t Alexa’s first outage by any means, nor even its first this year. The service can become unresponsive at times, either due to server issues or overloads. In March, for example, the voice service went down even while the Alexa mobile app still worked.

And in September, Alexa went down across Europe, apparently related to an AWS outage in Ireland. That was followed by a U.S. outage the following month, which led the assistant to respond to requests with “sorry, something went wrong.”

Europe is a growing market for Alexa, with Amazon having introduced its smart speaker to Italy and Spain, this June. Alexa’s other international markets include the U.K., Australia, India, New Zealand, Germany, Japan and Ireland.



from Amazon – TechCrunch https://techcrunch.com/2018/12/26/alexa-crashed-on-christmas-day/