Showing posts with label Amazon. Show all posts
Showing posts with label Amazon. Show all posts

Friday, January 19, 2018

Amazon's HQ2 Pageant

When Amazon released the "short list" for its second headquarters, I was expecting a list that was, well, short. Instead, Amazon released something that looks more like a BuzzFeed listicle of America's twenty most popular cities. And that's probably exactly what it was.

Whether Amazon knew it going into this campaign, it's clearly become a lucrative contest, one that has every major newspaper in North America singing praise of the trillion dollar beast. Of course it's not a decision to be made lightly, but considering Amazon's reputable speed of service, it's one that certainly could have been made by now, and maybe already has. Yet by drawing it out for another year, memberships will continue to surge out of cities that hope to be chosen, the press will continue to freely advertise Amazon with puff pieces careful not to damage their cities' odds, and maybe Bezos can squeeze a few more incentives out of the few cities unaware that they're already top contenders. 

Whatever is going on in downtown Seattle's hive mind, I think that Philadelphia is a top choice for Amazon's HQ2. I say that with no bias, because personally I don't want them here. Philadelphia's place in the race is evident to anyone who lives here, but not so much beyond the northeast corridor. Our public transportation is as expansive as any city between D.C., New York, and Chicago, in many cases more so. 30th Street Station's access to other cities is second only to Manhattan. Our universities are keeping more and more graduates in town, which will only grow with Amazon's career opportunities and internships. And above all, our housing stock is considerably cheap.

Sure, statisticians loves to run means and averages that show property values are on the rise, and that's great, But with Detroit out of the race, few cities of our size, if any, can offer a habitable home for $50,000 or a decent one for $150,000. Normally slums aren't an upside, and that was the fallible conclusion for much of the 20th Century. But when adventurous Gen Xers began working their way back into our cities, paving the way for Millennials to return in hoards, slums have merely become opportunity. To developers, neighborhoods like Kensington and Harrowgate are only as bad as the people who live there. To 50,000 new Amazon employees who know nothing of the city's baggage, or simply don't care, these places are real estate goldmines along the trendy Market-Frankford line. 

Many have speculated that the D.C. suburbs, namely Northern Virginia, will likely emerge as the ultimate winner of Miss Amazon's crown. The Dulles Corridor has been tech heavy since the early days of AOL and MCI, and Metro's new Silver Line connects it to downtown D.C. through the semi-urban enclaves of Arlington and Tysons Corner's growing skyline. While that might sell a location to a tech company like Oracle, Amazon isn't one of many. When AOL moved into an old Boeing office at the end of the Dulles toll road, it was surrounded by farmland. At the time, it ruled the tech sector like Google and Amazon do today, and it defined the region the way Microsoft defined Redmond, WA.

Amazon undoubtedly wants a location with talent, but short of technology vacuums like West Virginia or Northern Alaska, today's tech talent isn't hard to find. What Northern Virginia provides are established applicants with lengthy resumes, and if I know one thing as a fifteen year veteran of the industry, it's that tech companies are willing to pay threefold for inexperienced college graduates that can be groomed into a company's unique corporate culture. 

Considering we're talking about an industry that boomed a short twenty years ago, what's an established technology region even mean to a company like Amazon anyway? They could plop HQ2 down in the worst part of Camden, NJ or the middle of the Ozarks, and they're going to define that place exactly how they want.

In that regard, Philadelphia has what all cities have...plus easy access to an ocean that's warm enough to swim in. Compared to other areas on the list - costly Northern Virginia, New York, and Boston, isolated southern cities, and Denver's redundancy - Philadelphia has more pros than cons. Our only real cons are our unions and historic reputation for fucking things up. If Amazon is willing to weather our notoriously frustrating unions throughout construction, the only thing it has to look past is what few ever do: recognizing that "Philadelphia isn't as bad as Philadelphians say it is." Considering Amazon decided to set up shop in an iffy part of downtown Seattle instead of taking the traditional route out to Redmond, I think they're savvy, and unique, enough to see Philadelphia for what it actually has to offer.

All that said, I'd rather Amazon go anywhere but Philadelphia. Sure, it would be exciting to see what they build and how the city evolves. But the incentives Amazon receives will set a precedent for kickbacks that is already painfully apparent to corporations dancing around Philadelphia. I wonder how many developers have shelved plans for Philadelphia, waiting to see how Amazon's decision plays out, waiting to see how many more handouts they'll be able to demand in its wake. 

This city has been a whore in Colonial drag for the last forty years, and by handing out a few million here and there to developers who do nothing but demolish landmarks under the pretense that they might someday build something better than a parking lot, the pimps in City Hall aren't even trying to be discreet. What's the next developer or corporation going to want knowing Amazon got, say, $1B or more? 50,000 new jobs sounds great, and maybe the investment seems sound, but not if we're paying for those jobs and one company's tax breaks for the next ten or twenty years. Hell, by the time the first ordinary Philadelphian reaps the benefits of Amazon's theoretical HQ2, the Technological Revolution may have collapsed and it could be 1929 all over again.

But that's where things get really icky, not just in Philadelphia, but in all cities competing for a prize that could be as laboriously fruitless as winning the Olympics. Philadelphia hasn't even disclosed its offer to Amazon, and though it will likely come out at some point, it's being kept under wraps for one or two reasons: It's unrealistically expensive, and in the likely event that we aren't chosen, residents will begin questioning why even a fraction of such a bloated amount can't be put towards our existing infrastructure. How greedy we are to expect our elected officials take care of their own citizens' needs with found money apparently available to a trillion dollar conglomerate three thousand miles away? Speaking even more broadly, Amazon's corporate pageant has driven a rift in a once united country, pitting American cities against one another as if we are embroiled in an economic war. 

Historically, we're bribing a 19th Century robber baron to build a train station or a port, something that will never be appreciated by the masses until it's an architectural relic seventy years later, and a civics lesson in economic ethics. But that's exactly what this contest signals, and why it should be more disconcerting than it is. Whether Amazon winds up here or Northern Virginia, history is repeating itself. And between Amazon, Google, Tesla, Comcast, etc., etc., etc., we are all doomed to repeat it. But we're so caught up in the pageantry of it all, we can't see what awaits us.

Tuesday, July 28, 2015

Amazon's Poaching Comcast's Talent

Philadelphians have a love-hate relationship with Comcast. Like most cable customers, we depend on our service as we do any utility. Whether it's our cell phone service, cable internet, or our electricity, when it does down, we bitch. It's the end of the world. 

But we're also obligated to love our homegrown Comcast because our economy relies on it. Frustrating as it may be at times, we want them to win. 

A lot has been said about Comcast's intentions for its new Comcast Innovation and Technology Center, its vertical information and technology campus allegedly intended to give a few behemoths in the Silicon Valley a run for their money. 

But despite speculation in the Wired-centric blogosphere, Comcast itself has been relatively quiet about its intentions. How does a telecom giant intend to enter the IT market? 

For now, no one seems to know. But it wouldn't be unheard-of for a massive company to expand into new markets. Google is branching out into Comcast's territory with Google Fiber, and is even tiptoeing into the automotive industry with its conceptual driverless car. 

But software companies are a bit of an anomaly in the world of Wall Street. Companies like Google, Apple, even Microsoft and IBM, don't exclusively think in terms of immediate profit. Companies reared from a geek mentality invest heavily in conceptual research and development never intended to go anywhere.

They take risks, sometimes misguided. Google was banking on Glass being more than a joke. While it's a groundbreaking piece of technology, they underestimated the vanity of a world beyond the Silicon Valley, one in which wearable technology simply can't be fashionable.


Apple took similar risks with its Watch. Although more successful than Google Glass, and seemingly more thought out, it appears to be finding a niche market nowhere near as robust as its iPhones and iPads. 

What is unheard-of in Comcast's realm - and thus Philadelphia's - is that a profit-driven corporate entity unversed in conceptual technologies - even geek-speak- is trying to nudge its way into that world. 

As it stands, Comcast's relationship with NBC-Universal is only vaguely integrated. NBC-Universal is a Comcast brand in stock-only, yet almost entirely autonomous. Comcast is parading NBC-Universal around in much the same way that AOL touted its TimeWarner acquisition. But in both case, a Wall Street alfa is touting a household brand to prove its worth. 

While NBC-Universal can't divorce itself in the same way that TimeWarner split from AOL, if Comcast flounders in the face if new technology, NBC-Universal will prove itself the alfa of the pair. 

For now, Comcast has proven that it can compete with innovative streaming companies on a very high level. Xfinity Stream was recently released as either a rival or companion to numerous streaming content providers. 

Whether this says anything about Comcast's abilities as an innovator, it at least shows that it recognizes an immediate market for those who've opted out of cable. 

But technology can change in the blink of an eye. And whether its mobile content provision of something we haven't seen yet, something else will come along. If Comcast doesn't get out in front of that, or innovate that technology themselves, they're reduced to being what they are with Xfinity Stream: a follower.

Whatever Comcast has in store, whether it has a plan for the IT market or it's still researching its options, others have taken note. And they've taken note from a prominent place: Seattle. Synonymous with technology and the ability to offer absolutely everything with the click of a button, Amazon will be at the Loews Hotel in Philadelphia for a three day event specifically designed to poach Comcast's tech-talent. 

If you ever thought Comcast wasn't paying attention, they'll be there doing exactly the same thing. 

If you think it's a bad sign for Philadelphia's information technology market, don't. In fact, it's just the opposite. In the past year, Tesla has been poaching Apple's talent. Why? Because Tesla is innovative, and wants a piece of Apple's equally innovative talent pool.

The fact that Amazon is targeting Comcast's talent - likely because they're both streaming content - says a lot about Comcast's relevance in the streaming content marketplace. Amazon Prime has grown in popularity on par with Netflix and Hulu. In fact, it's the third best way to watch television without a cable provider. Amazon - a tech savvy West Coast company - wouldn't be targeting Comcast if Philadelphia wasn't a threat. 

What Comcast decides to do with this unofficial clout remains to be seen. But Amazon's career fair at the Loews Hotel will relay a message back to the West Coast that the job market is shifting, and that there are geeks Back East that mean business.