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Outside of the US Postal Service (USPS), FedEx and UPS have dominated the domestic logistics industry — and in particular, the last-mile of the delivery — for decades. On a quarterly earnings call in 2016, FedEx estimated that itself, UPS, and USPS executed a whopping 95% of all e-commerce orders.

But rapidly rising volumes have put the pair of legacy shippers in a bind. E-commerce sales have risen over 50% and are projected to continue their ascent into the next decade. High volumes are already straining shippers' networks — UPS struggled to bring consumers their parcels on time due to higher-than-anticipated package volume, which upset some big-name retail partners, including Macy's, Walmart, and Amazon. As online sales surge further, package volumes will outstrip legacy shippers' capacities, creating space for new entrants.

Amazon is uniquely well-positioned to dethrone UPS and FedEx's duopoly. It's built up a strong logistics infrastructure, counting hundreds of warehouses and thousands of delivery trucks.

Further, as the leading online retailer in the US, it has a wealth of data on consumers that it can use to craft a personalized delivery experience that's superior to UPS and FedEx's offerings. Amazon must act soon, however, as UPS and FedEx are hard at work fortifying their own networks to handle the expected surge in parcel volume.

The longer the Seattle-based e-tailer delays the launch of a delivery service, the more it runs the risk that these legacy players will be able to defend their territory.

In a new report, Business Insider Intelligence, Business Insider's premium research service, explains how the age of e-commerce is opening up cracks in UPS and FedEx's duopoly. We then outline how Amazon's logistics ambitions began as an effort to more quickly get parcels out the door and fulfill its famous 2-day shipping process and how it'll be a key building block for the company if it builds out a last-mile service. Lastly, we offer concrete steps that the firm must take to maximize the dent it makes in UPS and FedEx's duopoly.

The companies mentioned in this report are: Alibaba, Amazon, FedEx, and UPS.

Here are some of the key takeaways from the report:

While UPS and FedEx have dominated the US last-mile delivery market for the last few decades, the surge in e-commerce is creating more volume than shipping companies can handle.
Amazon is uniquely well-positioned to put a dent in UPS and FedEx's duopoly due to its strategic position as the leading online retailer in the US.
Amazon can carry its trust amongst the public, a wealth of consumer data, and its ability to craft a more personalized delivery experience to the last-mile delivery space to ultimately dethrone UPS and FedEx.
The top priority for Amazon in taking on UPS and FedEx needs to be offering substantially lower shipping rates — one-third of US retailers say they'll switch to an Amazon shipping service if it's at least 20% cheaper than UPS and FedEx.

In full, the report:

Outlines Amazon's current shipping and logistics footprint and strengths that it would bring to the last-mile delivery space in the US.
Lays out concrete steps that Amazon must take if it wants to launch a standalone last-mile delivery service, including how it can offer a more memorable, higher-quality delivery experience than UPS and FedEx.
Illustrates how Amazon can minimize operating costs for a delivery service to ultimately undercut UPS and FedEx's shipping rates in the last-mile space.

Get The Amazon Fulfillment Report

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Jeff Bezos

Amazon's operations generated $30 billion in cash last year, and the company still had more than $11 billion left after investments.
Those amounts were up significantly from 2017.
At the same time, growth in its core e-commerce business has started to slow; sales grew just 13% in the most recent quarter from the same period last year.
Amazon will likely take some of its swelling cash and invest it in boosting its retail business by cutting prices, Wolfe Research's Scott Mushkin said in a note.

Amazon has leaned on technology to become a 21st century titan, but it might turn next to an old-school tactic to jumpstart its slowing e-commerce business.

The Seattle company has started to generate huge amounts of cash — it garnered $30 billion from its operations last year alone, thanks largely to its hugely profitable and fast-growing Amazon Web Services (AWS) business. Scott Mushkin, a financial analyst who covers the company for Wolfe Research, thinks Amazon will take a page from Walmart and invest some of that cash in cutting prices to boost its retail business and grab market share from competitors.

"We envision a day when Amazon not only provides unmatched convenience but also unmatched pricing," Mushkin said in a research note issued Sunday. "This, in our opinion, would be absolutely devastating to other retailers and likely result in a reacceleration of Amazon's growth rate."

Amazon spooked investors last week when it warned that it expected its first-quarter sales to grow more slowly than analysts had forecast. It also reported weak results from its retail business in the holiday quarter. Its direct online sales to consumers grew by just 13% from the fourth quarter last year, and sales through its Whole Foods chain and other physical stores actually fell 3% year over year.

Read this:Amazon tops Wall Street's holiday expectations, but offers weak sales guidance

Although the company's overall holiday results beat Wall Street's expectations, Amazon's stock fell more than 5% on Friday on investors' worries about upcoming quarters.

Amazon has become a cash machine

Mushkin lowered his earnings estimates and price target — from $2,350 a share to $2,200 — following the report. But he remains a bull on Amazon and thinks the markets fears about the company are overblown. A big part of his optimism about the tech giant has to do with how much cash it now generates.

From Amazon's earliest days until only a few years ago, many investors and analysts worried about whether it could ever become a significantly and sustainably profitable company. But in recent years, it's begun to erase those doubts as its cloud-computing arm has turned into a cash cow. Last year, AWS brought in $7.3 billion in operating income — well more than half of Amazon's total operating profit — up from $4.3 billion in 2017.

Those profits have translated into surging cash flow for Amazon. Even after subtracting the capital investments it made in property and equipment and the payments it made on capital leases, Amazon still generated $11.6 billion in cash last year, which was up from $3.3 billion in 2017 and $6.5 billion in 2016.

On a conference call with investors last week, Brian Olsavsky, Amazon's chief financial officer, cautioned investors and analysts that Amazon expects to step up spending and investments this year. It plans to increase its employee base faster than it did last year and ramp up investments in fulfillment and data centers, he said.

But Mushkin thinks the company will also invest some of its surplus in cutting prices. While Amazon has long offered competitive prices, it's tended to be a "price follower," essentially reacting to other companies' price cuts. Going forward, Amazon will likely make other companies react to its prices instead.

"With the massive growth in ... free cash flow, we think Amazon is positioned to take from Walmart’s playbook, transitioning to a price leader in the marketplace," he said.

Amazon's stock closed regular trading Monday up $7.08, or less than 1%, to $1,633.31.

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NOW WATCH: 7 science-backed ways to a happier and healthier 2019 that you can do the first week of the new year

chocolate chip thumb

We tested recipes from Nestle, Hershey's and Ghirardelli chocolate chip packages to see which one makes the best chocolate chip cookies.
Nestle's recipe had a nice saltiness, while the Hershey's chocolate chips tasted a little bitter to some of us.
Ghirardelli's chocolate chip recipe was the winner with the perfect balance of sweetness and bitterness.

After comparing different brands of grocery store cookies and pre-made chocolate chip cookie dough as part of INSIDER's taste test series, we decided to try chocolate chip cookies made from scratch.

I enlisted a few brave volunteers to help taste test chocolate chip cookies made with the recipes found on the back of three different brands of chocolate chips: Nestle, Hershey's, and Ghirardelli.

Keep reading to see which one was our favorite.

We decided to stick to Nestle, Ghirardelli, and Hershey's semi-sweet chips for consistency.

I was able to find all three brands of chocolate chips in the baking aisle of my local supermarket.

In New York City grocery store's baking aisle, a 12-ounce bag of Hershey's chocolate chips cost $4.19 and 12-ounce bag of Ghirardelli chocolate chips cost $5.49. Nestle chocolate chips only came in a large 24-ounce package and cost $7.69. At those prices and sizes, Hershey's chips were 35 cents per ounce and Ghirardelli's were 46 cents per ounce, and Nestle's bigger bag contained the most value at 32 cents per ounce.

Target sells 12-ounce bags of Nestle and Ghirardelli chocolate chips for $2.99, and Hershey's chips for $2.49, making Hershey's the most affordable option there.

Prices will vary depending on where you purchase these chips.

The recipes on the backs of the packages were virtually identical.

The only difference was that Nestle's Toll House cookie recipe called for a teaspoon of salt while Hershey's and Ghirardelli called for half a teaspoon.

Since the cookie recipes were basically the same, the best cookie would be heavily determined by the differences between the chocolate chips.

We decided to evaluate the cookies based on three factors, ranking them each from one (bad) to five (delicious).

Overall taste
Texture of the cookie
"Meltiness" of the chocolate chips

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DJ marshmello Fortnite

"Fortnite" is the most popular video game in the world with more than 200 million registered players worldwide.
This past weekend millions of "Fortnite" players logged into the game to watch EDM star Dj Marshmello perform a 10-minute concert set on Saturday, February 2nd.
Players gathered at the virtual Pleasant Park in "Fortnite" to watch the performance and could dance along to the music with other players in-game. More than 10 million players reportedly watched the concert while logged into the game.

A virtual performance hosted inside of the world's most popular video game may have been an early glimpse at a future cultural phenomenon. More than 10 million "Fortnite" players logged into the game on Saturday to watch a 10-minute virtual concert performed by EDM star Dj Marshmello, a massive success for the game's first live performance and evidence that players are interested in more than just shooting each other.

"Fortnite" has more than 200 million registered players worldwide, including Marshmello himself. The basic game mode pits 100 players against one another in a fight for survival, but as the concert demonstrated, there are many ways to enjoy the game. Each week brings new social and competitive events for players to explore, and the game's new creative mode is encouraging them to craft their own experience.

For many gamers, "Fortnite" has become the place where they gather and socialize with friends, if only due to the sheer number of people playing the game.

For Saturday's concert players gathered at Pleasant Park, a static location in the shooting game, to watch the performance and dance along with the music if they so chose. Players visiting Pleasant Park in the days leading up to the concert could see the stage slowly being built– the sort of small detail that has helped the world of "Fortnite" feel like a living place that changes with time.

On the day of the concert, Fortnite released a special mode that prevented players from shooting each other while they were in the concert area.

After the show, several "Fortnite" players told Marshmello that his performance was their first concert. Dozens of "Fortnite" players and parents shared video of themselves dancing and having fun during the short set, and Marshmello returned for an encore run of the performance later in the day. An extended version of the mix was uploaded to Apple Music, with a 29-minute runtime.

What makes me happiest about today is that so many people got to experience their first concert ever. All the videos I keep seeing of people laughing and smiling throughout the set are amazing. Man I’m still so pumped
— marshmello (@marshmellomusic) February 3, 2019

Thank you @marshmellomusic and @FortniteGame for a stellar encore performance, this was a truly unforgettable event that I’m so glad I didn’t miss! I missed the first performance due to work, so I’m thankful for having the opportunity again to experience my first ever concert💜 pic.twitter.com/DHE2ZJZpuK
— GameRebel (@GRebel21) February 3, 2019

I’m still in awe @FortniteGame pic.twitter.com/VnM5BrTTnb
— marshmello (@marshmellomusic) February 2, 2019

The first concert in "Fortnite" was a massive success and a perfect example of how the game has captured the attention of millions.

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NOW WATCH: Apple forever changed the biggest tech event of the year by not showing up

Tulsi Gabbard

Democratic Rep. Tulsi Gabbard, who's running for president in 2020, has accused NBC News of attempting to smear her as a "Kremlin stooge."
A recent NBC report suggested there are signs Russian propagandists are working to back Gabbard's candidacy.
In a tweet, Gabbard said NBC "used journalistic fraud to discredit our campaign."
The Hawaii congresswoman, who has controversial positions on foreign policy, also seemed to embrace the notion NBC is part of a broader effort to undermine her campaign because she has views contrary to the Democratic establishment.

Democratic Rep. Tulsi Gabbard, who's running for president in 2020, on Sunday lashed out at NBC News over a report suggesting Russian propagandists have started to back her candidacy.

Gabbard, who formally launched her campaign on Saturday, in a tweet accused NBC of employing "journalistic fraud to discredit our campaign."

The NBC report, published Saturday, claims that analysis shows "the main English-language news sites employed by Russia in its 2016 election meddling shows Rep. Tulsi Gabbard of Hawaii ... has become a favorite of the sites Moscow used when it interfered in 2016."

The report added, "Since Gabbard announced her intention to run on Jan. 11, there have been at least 20 Gabbard stories on three major Moscow-based English-language websites affiliated with or supportive of the Russian government." The pro-Russia outlets listed include RT, Sputnik News, and Russia Insider.

The report further claimed that experts who track Kremlin-linked websites and social media accounts found evidence of "what they believe may be the first stirrings of an upcoming Russian campaign of support for Gabbard."

Glenn Greenwald, one of the founding editors of The Intercept who is perhaps best known for his reporting on the Edward Snowden leaks, slammed NBC in an article that questioned the credibility of one of the sources cited in the report – the cybersecurity firm New Knowledge.

Greenwald cited a New York Times report that alleged New Knowledge was involved in an effort to mimic the tactics of Russian trolls in order to aid then-Democratic Senate candidate Doug Jones against Republican Roy Moore in Alabama. On this basis, Greenwald contended NBC's "whole story" on Gabbard "was a sham."

Ben Popken, one of the reporters behind the NBC story, responded to Greenwald's article in a series of tweets. Popken said there's "a lot wild conflation and hyperbole over New Knowledge," and he didn't feel it amounted enough to reject the firm as a source.

Greenwald in his story accused NBC of attempting to "smear Gabbard as a Kremlin favorite," claiming it's a move right out of the "playbook" of those seeking to undermine adversaries of "the establishment wing of the Democratic Party." He pegged NBC as among the entities working to uphold the status-quo and prop up the establishment.

Gabbard has a history of taking controversial foreign-policy stances, and was widely criticized in 2017 after she visited Syrian President Bashar al-Assad – an ally of Russian President Vladimir Putin. She compounded the backlash by expressing skepticism about reports of Assad using chemical weapons against civilians.

Tulsi Gabbard

In response to NBC's story, Gabbard seemed to latch onto Greenwald's suggestion that there's an active effort to paint the Hawaii congresswoman as a "Kremlin stooge" to derail her campaign for president.

Gabbard on Sunday tweeted, "@ggreenwald exposes that @NBC used journalistic fraud to discredit our campaign. But more important is their motive: 'to smear any adversary of the establishment wing of the Democratic Party – whether on the left or the right – as a stooge or asset of the Kremlin.'"

In a separate but related tweet, Gabbard added, "As commander-in-chief, I will work to end the new cold war, nuclear arms race and slide into nuclear war. That is why the neocon/neolib warmongers will do anything to stop me."

Popken in a tweet said the implication Gabbard's foreign policy is what inspired NBC's reporting is a "bogus conspiracy theory."

Gabbard did not immediately respond to a request for comment from INSIDER.

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NOW WATCH: MSNBC host Chris Hayes thinks President Trump's stance on China is 'not at all crazy'

lauren b arie bachelor

"The Bachelor" is in its 23rd season.
"The Bachelor" franchise has had its share of dramatic moments, both on- and off-screen.
While reality TV shows like to capture the drama on-camera, these scandals happened off the air.

"The Bachelor" has had tons of dramatic on-screen moments, from breakups that viewers didn't see coming to villains who audiences loved to hate.

But other wild moments have happened behind the scenes.

INSIDER has taken a close look into the 10 biggest off-camera scandals in "Bachelor" Nation history.

"Bachelor in Paradise" shut down due to allegations of sexual misconduct.

Fans and contestants were shocked when production was halted on the set of"Bachelor in Paradise" season four over allegations of sexual misconduct involving Corinne Olympios and DeMario Jackson. Cast and crew were sent home from Mexico while an investigation was held.

Though they were originally told the show was likely canceled, after a brief shutdown, Warner Bros. said they had found no evidence of misconduct and filming resumed shortly after.

Most of the inner workings of the shutdown were not shown on camera, but it was covered briefly once filming resumed, with host Chris Harrison asking the cast for their thoughts.

Though we didn't see much on-air, both Olympios and Jackson have been vocal about their frustrations surrounding the allegations and Jackson said that the accusations even cost him his job.

Former "Bachelorette" star Andi Dorfman said in her book that ex-fiancé Josh Murray "behaved like an emotional abuser."

Dorfman was the lead of the 10th season of "The Bachelorette" and ended the season engaged to Josh Murray. The engagement lasted nine months and she addressed the relationship in her book "It's Not Okay" and detailed alleged emotional abuse.

"If I talked to another man, I was a whore. If I disagreed, I was argumentative. If I defied him, I was a 'b----,'" Dorfman wrote in her book, according to HuffPost.

Dorman claimed that Murray exhibited jealous behaviors and described Murray's behavior as that of an "emotional abuser."

"I had become a 27-year-old woman who walked on eggshells in her own home," Dorfman wrote. "What they didn't know is I was trapped with someone who, in my opinion, often behaved like an emotional abuser."

Murray spoke out about the allegations in Dorfman's book. During the taping of "Bachelor in Paradise" season three, Viall often brought up Dorfman's book and Murray adamantly denied the allegations.

Later though, in an interview with him and then-fiancée Amanda Stanton, he told Us Weekly "Yes, there's a trueness in there, but it's twisted in such a way that makes it the worst lie possible because it's believable. I'm not perfect by any means, but I think I'm pretty decent!"

Former "Bachelor" star Chris Soules pleaded guilty to a misdemeanor charge of leaving the scene of an accident.

In November 2018, Soules pleaded guilty to a misdemeanor charge of leaving the scene of an accident. He was originally arrested after police said he rear-ended a tractor in April 2017. 66-year-old Kenny Mosher, who was driving the tractor, was taken to the hospital and later died from his injuries.

Soules is expected to be sentenced in February.

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artificial intelligence social network eter9

Many companies use the term artificial intelligence, or AI, as a way to generate excitement for their products and to present themselves as on the cutting edge of tech development.

But what exactly is artificial intelligence? What does it involve? And how will it help the development of future generations?

Find out the answers to these questions and more in AI 101, a brand new FREE report from Business Insider Intelligence, Business Insider's premium research service, that describes how AI works and looks at its present and potential future applications.

To get your copy of the FREE slide deck, simply click here.

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2019 has been called "the year of the vegan" by The Economist.
With an increasing interest in the vegan lifestyle, brands are offering more vegan options to appease their customers.
While finding vegan fashion might not be as easy as finding vegan food, it's possible — and there are lots of great options out there.
Here are 9 great winter boot options that also happen to be vegan.

In a recent article that dubbed 2019 as "the year of the vegan," Economist correspondent John Parker examined the soaring interest in the vegan lifestyle of late, and how it's impacting multiple industries. A quarter of Millenials today identify as vegan or vegetarian, and companies are working to reach these consumers by accommodating their needs.

In response to people cutting meat out of their diets, McDonald's has created a McVegan burger. Brands like Beyond Meat and Impossible Foods are making plant-based meat substitutes that actually look, feel, and even "bleed" like the real thing. Even Tyson, the largest meat processor in the U.S., is getting in on the plant-based protein trend.

But, at its core, veganism is more than just a diet. It's also a system of values that is causing more and more people to consider how other products they use — think clothing, home goods, and accessories — are made. Vegan labels have become prolific in grocery stores and on the boxes of your favorite snacks, but there's less transparency when shopping for clothing and accessories, making the process a little more difficult.

There are plenty of brands making chic, stylish clothing and accessories that also happen to be cruelty-free. And, plenty of your favorite existing brands have started added vegan options to their offerings. To make it easier for you, we rounded up 9 great pairs boots that are perfect for winter and also happen to be vegan. Whether you're vegan or not, we think you'll love — and really want to wear — one of these pairs.

Keep reading for 9 pairs of vegan winter boots:

Women's Ilse Jacobsen Short Rain Boot

Ilse Jacobsen 'RUB 47' Short Waterproof Rain Boot, available at Nordstrom, $218.95

Finding a replacement for warm, shearling-lined boots may prove a little difficult when you're shopping vegan. These rainboots are a good option. They're made with natural rubber from renewable resources (bonus points for sustainability) and lined with a soft fleece to keep your toes toasty on cold days. The thick sole is slip-resistant and adds some insulation between your feet and the cold ground. With a combination of waterproof rubber and a soft, cozy lining, you're set for cold, snowy days.

Men's Sorel Short Canvas Duck Boot

Sorel Cheyanne II Short Canvas (2 colors), available at Zappos, $97.50

A comfortable yet durable pair of boots isa winter necessity. Many duck boots have a leather upper, but this pair opts for canvas instead. While not advertised as vegan, these are simply made with canvas and rubber. The entire boot is seriously waterproof, even the seams are sealed to keep out rain, so you can be sure your feet will be kept dry no matter the conditions.

Women's Dr. Marten's Vegan Chrome Boot

Dr. Martens 1460 Vegan Chrome Boot (Dark Grey), available at Urban Outfitters, $120

Classic Dr. Martens get a vegan twist. This version of the 1460, the original Dr. Martens boot, is made with 100% vegan leather and finished with a chrome gloss. Everything else is the same — the lace up front, yellow stitching, signature heel loop, and air-cushioned sole have all stayed true to the original.

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Life insurance is fundamentally hard to sell; it’s morbid to think about, promises no immediate rewards, and often requires a lengthy paper application with minimal guidance.
Despite the popularity of personalized products in other areas of finance and fintech, life insurance largely remains unchanged.
A small, but growing pocket of insurtech startups are shaking up the status quo by finding ways to digitize life insurance and increase its appeal.

Life insurance is a fundamentally difficult product to sell; it requires people to think about their deaths without promising any immediate returns.

And, despite tech innovations and the development of personalized services in other areas of finance, life insurance remains largely unchanged.

Luckily, there is a small but growing pocket of insurtech startups looking to modernize it. These companies are finding ways to digitize life insurance to appeal to consumers — and they’re giving incumbents the opportunity to revamp traditional offerings, either by partnering with them or using their technology.

Business Insider Intelligence, Business Insider's premium research service, has forecasted the shifting landscape of life insurance in the The Future of Life Insurance report. Here are the key problems insurtechs are tackling:

Lack of education: Forty percent of US consumers told the Life Insurance and Market Research Association (LIMRA) that they feel intimidated by the life insurance application process, often drastically overestimating its cost and facing uncertainty about how much or which type of coverage to buy.
Inconvenient application process: It can take weeks or months for coverage to take effect because of the sheer number of meetings and parties combing through paperwork in each round of the application process. The risk for the insurer often warrants reviews from the carrier, a team of underwriters, a broker, and even a medical examiner.
Low customer loyalty: Life insurance tends to be a “set it and forget it” type of purchase, with very few people revisiting it after buying. Insurers and consumers therefore have limited contact for most of the relationship — with the exception of an annual bill, of course.
Inefficient data management and processing: The aggregate data life insurers rely on is typically fed into algorithms that make broad assumptions about particular populations, and often incorporate outdated medical documentation — all of which can delay applications and result in unnecessary rejections.

Want to learn more?

The need for modernization in life insurance is clear: Overall sales are slowing and policy ownership is hitting record lows. And because it’s such a tightly-regulated space, innovation from incumbents has stagnated — but they’re not helpless. Consumer-focused and insurer-focused startups have emerged to offer new technologies and process improvements.

The Future of Life Insurance report from Business Insider Intelligence looks at the two main strategies life insurtechs are adopting to drive change in this market, for the benefit of both buyers and sellers. In full, the report discusses best practices incumbents and startups should adopt to steer clear of the risks attached to applying emerging technologies to such a tightly regulated product.

Insurtech startups will soon set new industry standards and consumer expectations around this complex product. That, in turn will serve as a catalyst for innovation among legacy players.

Companies included in this report: Ladder, Haven Life, Getsurance, Tomorrow, Fabric, Atidot, AllLife, Royal London, Polly, Life.io, Legal & General, Vitality, Discovery, John Hancock, Dai-ichi Life.

Get The Future of Life Insurance

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satya nadella

Six months ago, Amazon Web Services was seen as the clear winner in the race for the $10 billion Joint Enterprise Defense Infrastructure (JEDI) contract.
Now, Wedbush Securities analyst Dan Ives says Microsoft has a 40% chance of winning over AWS — far from a sure thing, but better chances than it had even a year ago.
Microsoft has stepped up its game on its Azure Government cloud, and it's leveraging it's four-decade- long relationship with the Department of Defense to be more competitive for the deal.
Ives says that investors are watching closely to see who wins JEDI, as a proxy for their ability to win more government cloud deals in the future.

Just six months ago, analysts believed Amazon was the hands-down frontrunner in a race for a $10 billion cloud contract with the Pentagon. But now, says an analyst, Microsoft actually has a fighting chance.

Right now, these cloud giants, along with IBM and Oracle, are competing for the Joint Enterprise Defense Infrastructure (JEDI) contract, a winner-take-all contract to move sensitive military data to the cloud.

Just about a year ago, Amazon Web Services had an 80% chance of winning, while Microsoft had a 20% chance, wrote Daniel Ives, managing director of equity research at Wedbush Securities, in a note to clients on Monday. The gap has narrowed to AWS having a 60% chance and Microsoft having a 40% chance.

Ives calls this bid the "cloud Super Bowl," and says the announcement of the winner will be a defining moment in the cloud wars between the two tech titans. And while it's far from a sure thing, Microsoft stands a better chance than ever before.

"I think Microsoft still has some wood to chop to even the odds over the next six to eight weeks and that's why it's going to be a fierce battle between these two Seattle brethren to win JEDI," Ives told Business Insider. "In my opinion it's the most important cloud deal ever."

Microsoft is making some headway

JEDI isn't necessarily the endgame, and there will be other government cloud deals to come, says Ives.

But the announcement of the JEDI winner will have a ripple effect for years, he says. Whoever wins JEDI may be more likely to win future government cloud contracts, which Ives estimates will be worth $20 billion over the next five years. That's why investors in both companies are carefully watching JEDI, as a sign of things to come.

In the past few months, Microsoft has made steady progress with its Azure Government cloud, which is certified to handle classified information. It's planning to earn the highest government security authorization, which of all the cloud giants, only AWS holds. Microsoft is also investing in its artificial intelligence product line.

What's more, Microsoft been aggressively deepening its relationship with the Department of Defense. In January, Microsoft just won a separate $1.76 billion contract with the department for software development services.

Amazon had become a go-to cloud vendor for the government, as it had previously won a $600 million cloud contract with the CIA. However, Microsoft's relationship with the Department of Defense spans over 40 years, to the earliest days of the company. And Microsoft has lots of relationships with IT consultants and systems administrators who specialize in helping big government agencies like the DoD adopt new technology.

"While Microsoft might be at a slight disadvantage to Amazon and AWS from a cloud perspective, Microsoft is actually in a position of strength especially when it comes to its partner network, especially in the Beltway," Ives said. "That has enabled the company to get a leg up in the past two months."

The victory circle

The race, Ives says, is going to come down to which vendor with which the Pentagon feels most comfortable. Ives says that in his conversations with Washington insiders, Microsoft's hustle to get the deal has not gone unnoticed.

AWS knows that Microsoft is catching up, and it's no coincidence that Amazon announced a new headquarters near Washington, D.C., even as it expanded its partnership with enterprise stronghold VMware, Ives says.

"Microsoft has really stepped up in its partner ecosystem to potentially leverage itself into the victory circle for JEDI," Ives said. "The Azure Government cloud has been significant. Them getting that deal in early January was a major feather in their hat."

Both clouds are on something of a tear: When both companies announced earnings last week, AWS saw 45% year-over-year growth, while Microsoft Azure saw 76% year-over-year growth. Google previously dropped out of the JEDI race.

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NOW WATCH: This tiny building in Wilmington, Delaware is home to 300,000 businesses

Growth Regtech Firms

This is a preview of a research report from Business Insider Intelligence, Business Insider's premium research service. To learn more about Business Insider Intelligence, click here.

Regtech solutions seemed to offer the solution to financial institutions' (FIs) compliance woes when they first came to prominence around 24 months ago, gaining support from regulators and investors alike.

However, many of the companies offering these solutions haven't scaled as might have been expected from the initial hype, and have failed to follow the trajectory of firms in other segments of fintech.

This unexpected inertia in the regtech industry is likely to resolve over the next 12-18 months as other factors come into play that shift FIs' approach to regtech solutions, and as the companies offering them evolve. External factors driving this change include regulatory support of regtech solutions, and consultancies offering more help to FIs wanting to sift through solutions. Startups offering regtech solutions will also play a part by partnering with each other, forming industry organizations, and taking advantage of new opportunities.

This report from Business Insider Intelligence, Business Insider's premium research service, provides a brief overview of the current global financial regulatory compliance landscape, and the regtech industry's position within it. It then details the major drivers that will shift the dial on FIs' adoption of regtech over the next 12-18 months, as well as those that will propel startups offering regtech solutions to new heights. Finally, it outlines what impact these drivers will have, and gives insight into what the global regtech industry will look like by 2020.

Here are some of the key takeaways:

Regulatory compliance is still a significant issue faced by global FIs. In 2018 alone, EU regulations MiFID II and PSD2 have come into effect, bringing with them huge handbooks and gigantic reporting requirements.
Regtech startups boast solutions that can ease FIs' compliance burden — but they are struggling to scale.
Some changes expected to drive greater adoption of these solutions in the next 12 to 18 months are: the ongoing evolution of startups' business models, increasing numbers of partnerships, regulators' promotion of regtech, changing attitudes to the segment among FIs, and consultancies helping to facilitate adoption.
FIs will actively be using solutions from regtech startups by 2020, and startups will be collaborating in an organized fashion with each other and with FIs. Global regulators will have adopted regtech themselves, while continuing to act as advocates for the industry.

In full, the report:

Reviews the major changes expected to hit the regtech segment in the next 12 to 18 months.
Examines the drivers behind these changes, and how the proliferation of regtech will improve compliance for FIs.
Provides our view on what the future of the regtech industry looks like through 2020.
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Artificial intelligence (AI), robotics, and self-driving technology are helping the transportation and logistics industry finally transform by cutting costs, optimizing delivery routes, and automating mundane tasks.
Startups will be the lynchpin of this transformation because they specifically target areas of need with cutting-edge solutions.
Business Insider Intelligence examined the top 5 startups within five key areas: digital freight services, warehouse robotics, AI for supply chain management, last-mile delivery robotics, and self-driving car software.

Transportation and logistics industries have operated largely the same way for decades. But the surge in e-commerce in the last several years, combined with consumers’ appetite for same-day delivery, has brought us to a tipping point.

Total Logistics Costs

Delivery companies are doing all they can to get orders to customers’ doors as quickly as possible, which has facilitated wholesale changes in how they operate.

Cutting-edge digital solutions (including digital freight services, warehouse robotics, AI for supply chain management, delivery robotics, and autonomous driving software) are forcing traditional delivery companies to either evolve or see their core businesses erode.

Transportation & Logistics Startups to Watch, a new report from Business Insider Intelligence, monitors the biggest change agents in the industry to offer unique insight into the development of the transportation and logistics space at large, and shows how traditional companies are adapting to their new environment.

Want to Learn More?

Business Insider Intelligence's Startups to Watch reports give a high-level overview of the funding trends for startups in a particular coverage area, as well as a list of key startups (by function, what they do, key news, and statistics). Businesses need to understand new competitive threats, technologies, and acquisition opportunities in order to thrive. These reports provide that contextual information in an easy-to-digest manner.

In full, the Transportation & Logistics Startups to Watch report dives into the top 25 companies - five startups across five key disruption areas - that are easing shipping burdens, improving order fulfillment efficiency, optimizing delivery, and automating processes.

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Ruth Porat

Google doubled its capital expenditure spending in 2018 to $25.8 billion, which included spending on offices and tech infrastructure.
Its cloud unit also got the lion's share of new hires in the quarter, the CFO of parent company Alphabet said.

Google's cloud computing efforts were a mixed bag in 2018 but the company on Monday said that it invested heavily in 2018, and will continue do so in 2019, albeit maybe not at the same pace.

During its year-end earnings report on Monday, Google revealed that it doubled its capital expenditures in 2018, to $25.5 billion, up from $12.6 billion in 2017. The hefty spending went towards everything from new office facilities to accommodate Google's growing workforce to bolstering its infrastructure such as datacenters and servers.

It's tough to say exactly who much of that capex went towards Google's cloud business specifically, but the company has made it clear that investing in the cloud is a priority. Google said it launched its 18th Google Cloud region in the fourth quarter and pointed to plans for continued expansion in the US and abroad.

In comparison, Amazon spent $11.3 billion cash on capex in 2018, split between fulfillment operations (like warehouses) and AWS, it said. And Microsoft said it spent $16 billion.

Google also hired madly for its cloud unit, with more than 4,000 new hires in the final three months of the year. "The most sizeable increases were in cloud, for both technical and sales roles," Alphabet CFO Ruth Porat said during the conference call.

Porat noted that spending on talent and equipment will continue in 2029, though the pace will cool off compared to 2018. Capex, she said, will "moderate quite significantly."

How does Google's cloud business compare?

Google is spending to catch up. Revenue from its cloud business lags Amazon Web Services and Microsoft, although Google does likely have a multibillion cloud business. It's a bit tough to tell because Google doesn't break out cloud revenue. It lumps it in its "other" category which also includes the revenue it makes from its Google play app store and its hardware devices like Google Home.

That "other revenue" category was $6.5 billion in the fourth quarter of 2018, up from just under $5 billion for the year-ago quarter and a sizeable portion of that is generated by its app store. Google noted on Monday that the number of Google Cloud Platform deals worth more than $1 million more than doubled in 2018 and that it ended the year with more than 5 million paying customers of its cloud productivity tools, but otherwise offered little new information by which to measure the size of its Cloud business.

For comparison, AWS generated $7.43 billion in net cloud sales for Amazon in the fourth quarter.

Microsoft also doesn't disclose specific revenue figures for its cloud, Azure, so a direct comparison here is even harder to noodle out. The unit that includes Azure is called "Intelligent Cloud" and it generated $9.38 billion in the same quarter. However, despite putting "cloud" in the unit's name, that unit includes a lot of classic software products, including Microsoft's popular database and Windows Server, its operating system for servers. Those are both older, massive businesses compared to Azure and are not what anyone would consider a cloud service.

Most market experts believe that AWS is way ahead. One researcher, Synergy, puts AWS at 40% market share in cloud.

Keep an eye on the new boss

Of course the big news for Google's cloud efforts in 2018 was its change of leadership. Near the end of 2018, Google board member Diane Greene left. Google hired Thomas Kurian to replace her. He left Oracle where he helped build Oracle into a database and applications giant during his decades there, and then lead Oracle's cloud efforts. Oracle's cloud is growing quickly by internal metrics as it moves its customers from buying its software to renting its software on its cloud. But Oracle's cloud is not exactly taking the tech industry's breath away, so his performance at Google Cloud will be a test for him and the company.

There's been a lot of speculation about whether Kurian will embark on an acquisition spree to help Google's Cloud catch up with the competition. Google CEO Sundar Pichai kept mum on Monday when asked about any potential big deals or changes in strategy under Kurian. Pichai spoke of "continuity" and focusing on the parts of the business where the company is seeing good returns.

Even with all the shrouding of investment and financial results, the cloud industry is often considered a three-player race, with Amazon in the lead, Microsoft on its heels, Google in third and a variety of players, from Alibaba to IBM to Oracle, in the chase pack.

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Sundar Pichai

Google is holding the line on its app store economics.
On Monday, CEO Sundar Pichai said his company was sticking with its current revenue split with developers — which is a 30% cut on app sales and in-app purchases.
Pichai was responding to an analyst question about alternative app distribution channels — a not-so-subtle reference to "Fortnite," which famously circumvented the Google Play app store in protest of the revenue split.
Epic Games, the creator of "Fortnite," has been trying to rally the video game industry around the idea that the 30% cut is too excessive. But Pichai says that Google sees a fair "value exchange" in what Google Play provides to developers for the cash.

Google is holding the line on the economics of its app store.

In an earnings call with investors on Monday, Google CEO Sundar Pichai said his company was sticking with its current revenue split with developers — which is a 30% cut of app sales and in-app purchases.

"I think there’s a value exchange there and it’s been the industry standard," Pichai said during the call regarding the Google Play's fee. Apple's App Store also has a 70/30 revenue split with app developers.

Pichai's comments came in response to a question from a Wall Street analyst on how Google is approaching a landscape where developers are finding ways to circumvent the traditional app stores, and that revenue split — especially on Android.

While the analyst didn't mention it by name, one of the main companies shaking things up is Epic Games, which skipped the Google Play store when it released "Fortnite" on Android last year. Instead, the company brought the game directly to users, such that it doesn't have to pay that 30% cut to Google.

Analysts estimated that Google lost out on as much as $50 million in revenue, just from not having "Fortnite" in the Google Play Store — and if more developers follow in Epic's footsteps, the problem could get even worse for Google.

"The 30% store tax is a high cost in a world where game developers' 70% must cover all the cost of developing, operating, and supporting their games,"Epic Games founder and CEO Tim Sweeney told Business Insider last August.

"On open platforms, 30% is disproportionate to the cost of the services these stores perform, such as payment processing, download bandwidth, and customer service," Sweeney also said.

Judging from his response to the question, Pichai feels differently, and that Google thinks 30% is a fair shake for what the Google Play store provides to Android app developers.

Android isn't the only place where Epic Games is making waves, either. In December, the "Fortnite" creators launched its own Epic Game Store, which only takes a 12% cut of sales, compared with the 30% that the leading Steam PC games store took for many years. While Epic Game Store is only on PC, at least for the time being, it's already winning support from game developers.

Still, Pichai leaves some wiggle room for Google to change its policies in the future, should Epic succeed in shaking things up on Android and beyond.

"We’ll continue down that path," Pichai said on Monday regarding the company's current cost structure. "But obviously we always adapt to where the market is."

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FORECAST Global Remittance Volume Remittances, or cross-border peer-to-peer (P2P) money transfers, hit a record high of $613 billion globally in 2017, following a two-year decline. And the remittance industry will continue to grow, driven largely by digital services.

Several factors will fuel digital growth globally, such as increased smartphone penetration, greater demand for digital transactions, and an overall need for faster cross-border transfers. And with the shift to digital comes an audience of younger, digital-savvy customers using remittances — a segment that companies are looking to target.

As a result, the global remittance industry is becoming increasingly competitive for firms to navigate, with incumbents like Western Union and MoneyGram competing for the same pool of customers as digital upstarts like WorldRemit and Remitly. And in order to win, companies across the board will need to prioritize the four areas consumers value most in remittances: cost, convenience, speed, and safety.

In The Digital Remittances Report, Business Insider Intelligence will identify what young, digitally savvy users value in remittances. We will also detail the concrete steps that legacy and digital providers can take to effectively capture this opportunity and monetize digital offerings — the primary growth driver — to emerge at or maintain their presence at the forefront of the space.

The companies mentioned in the report are: MoneyGram, Remitly, Ria, Western Union, WorldRemit, TransferWise, and Xoom, among others.

Here are some key takeaways from the report:

The global remittance industry recovered from a two-year decline in 2017 to reach a record $613 billion in transfer volume. That growth will continue and will be fueled by digital remittances, which Business Insider Intelligence expects to grow at a 23% CAGR from $225 billion in 2018 to $387 billion in 2023.
There’s a new segment of customers that both legacy and digital firms are competing to grab share of. Young, digital-savvy consumers are the customer segment that all firms are vying to reach, which is creating a highly competitive dynamic. The needs of those consumers will precipitate transformational change in the industry.
We’ve identified several tangible steps firms can take to improve in four key areas — cost, convenience, speed, and security — to not only attract but also maintain this customer segment to align with their preferences and ultimately win in the space.

In full, the report:

Outlines the global remittance landscape and sizes the opportunity that the industry presents.
Identifies the new audience for remittances and future drivers of the remittance space going forward.
Discusses four key areas that providers can focus on — cost, convenience, speed, and security — to improve offerings and ultimately capture that shifting audience.

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global fintech funding

Digital disruption is affecting every aspect of the fintech industry.

Over the past five years, fintech has established itself as a fundamental part of the global financial services ecosystem.

Fintech startups have raised, and continue to raise, billions of dollars annually, pushing incumbent financial institutions to get in on the action. Legacy players have begun using fintech to remain competitive in a rapidly evolving financial services landscape.

So what's next?

Business Insider Intelligence, Business Insider's premium research service, explores recent innovations in the fintech space as well as what might be coming in the future in our brand new exclusive slide deck, The Future of Fintech: How Fintech Is Taking Over The World and What Comes Next.

To get your copy of this free slide deck, click here.

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donald trump inauguration

President Donald Trump's inaugural committee, which has been under scrutiny by federal prosecutors, was reportedly ordered to hand in documents relating to its finances.
Investigators are believed to be looking into the tickets for the event, photo sessions with Trump, and the event's vendors.
Trump's inauguration in 2017 raised eyebrows after it drew in more than $100 million in donations, $1.5 million of which was reportedly spent on the Trump International Hotel.

President Donald Trump's inaugural committee, which has been under scrutiny by federal prosecutors, was reportedly ordered to hand in documents relating to its finances, two people with knowledge of the investigation said in a New York Times report published Monday.

An attorney for the committee reportedly received a subpoena on Monday that sought information about its donors and attendees for the inauguration, a source told The Times. Investigators are also believed to be looking into the tickets for the event, photo sessions with Trump, and the event's vendors.

The information comes shortly after ABC News first reported on the possible subpoena from a source within the public corruption section at the Southern District of New York. A separate investigation into possible illegal donations made by foreign entities was reportedly being conducted by the US Attorney's office in Brooklyn, The Times reported.

So far, no charges have been filed in the investigation.

The Federal Election Commission prohibits foreign nationals — which includes foreign corporations and groups — from "making any donation to a presidential inaugural committee," in addition to forbidding them from making campaign contributions.

Trump's inauguration in 2017 raised eyebrows after it drew in more than $100 million in donations, $1.5 million of which was reportedly spent on the Trump International Hotel. These donations far surpassed Trump's predecessors.

The probe into the inaugural committee was reportedly sparked during an investigation into former Trump attorney Michael Cohen, who in two separate cases pleaded guilty to a number of financial crimes and lying to Congress. FBI agents reportedly seized recordings between Cohen and Stephanie Wolkoff, a committee official and former aid to the first lady, who was fired in 2018.

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justin fairfax

Virginia Lt. Gov. Justin Fairfax is denying allegations of sexual assault.
Fairfax spoke to reporters on Monday calling the accusations a "totally fabricated story out of the blue" and called the encounter with the woman "100% consensual."
Fairfax would become governor if embattled Gov. Ralph Northam resigns following the resurfacing of a racist photo in Northam's medical school yearbook, where he is allegedly either dressed in blackface or a Ku Klux Klan hood.
The Washington Post was initially looking into the allegations in 2017, but they could not find witnesses to corroborate either side of the story, so the paper did not run the story.

Virginia Lt. Gov. Justin Fairfax is denying allegations of sexual assault.

"Lt. Governor Fairfax has an outstanding and well-earned reputation for treating people with dignity and respect," his communications director said a statement published to Twitter early Monday morning. "He has never assaulted anyone — ever — in any way, shape or form."

Fairfax later spoke to reporters calling the accusations a "totally fabricated story out of the blue" and called the encounter with the woman "100% consensual."

"We reiterate that this allegation is false," a spokeswoman said in a statement to INSIDER. "At no time has the Lt. Governor assaulted anyone at any time or at any place.

"As a father, husband, and public servant, he knows that sexual assault is a very serious matter and survivors of assault deserve to be heard," the statement continued.

Fairfax would become governor if embattled Gov. Ralph Northam resigns following the resurfacing of a racist photo in Northam's medical school yearbook, where he is allegedly either dressed in blackface or a Ku Klux Klan-style costume.

Northam initially said in a statement on Friday that he was in the photo, though he could not recall which one he was. However, at a press conference on Saturday he claimed he was not in the photo, though he did acknowledge that he wore blackface while dressed up as Michael Jackson for a dance contest in 1984.

Fairfax, 39, would become the youngest governor and the only current African-American governor.

The allegations against Fairfax were published by the conservative website Big League Politics— the same site that first published the photo from Northam's medical school yearbook.

The Washington Post was initially looking into the allegations in 2017, but the newspaper could not find sources to corroborate either side of the story, so the paper did not run the piece.

The woman's account, which Fairfax denies, resurfaced in a private Facebook post, and one of her friends gave it to Big League Politics. The woman, who Big League Politics identifies but The Post and CNN do not, does not directly name Fairfax in her Facebook post.

An email to the woman was not answered, as she is on sabbatical, and the woman via her lawyer had not yet responded to The Post's request for comment.

She claims that the encounter happened in a hotel room in Boston during the 2004 Democratic convention, The Post reported. However, The Post could not verify either account, and in phone calls with Fairfax associates from college, law school, and elsewhere found no other accounts, so the paper did not run the piece.

Fairfax's team seized on the fact that The Post could not corroborate the woman's allegation, initially saying that the paper found "significant red flags and inconsistencies within the allegations."

The Post responded calling that categorization inaccurate.

"Lt. Gov. Fairfax is a public official who may well rise to the position of governor," Washington Post Executive Editor Marty Baron said in a statement published by The Post. "He began the morning by issuing a statement regarding allegations against him, making specific representations about Post reporting that had not resulted in publication. We then had an obligation to clarify the nature of both the allegations and our reporting."

During his press conference on Monday Fairfax said, "I have lived my life in a way that I am proud of," continuing that he has "never had anything like this said about me."

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Global VR Headset

This is a preview of a research report from Business Insider Intelligence, Business Insider's premium research service. To learn more about Business Insider Intelligence, click here.

The virtual reality (VR) market is expected to rally in 2018 after seeing slow growth from 2016 to 2017. The uptick will be largely catalyzed by the emergence of the newest headset form factor, stand-alone VR headsets, which address some of the biggest pain points that have prohibited mainstream consumers from adopting VR.

This new form factor is more affordable than cost-prohibitive high-end headsets and more capable than its smartphone-powered counterparts. Additionally, it features in-unit processing that frees the VR headset from wires. The first major stand-alone headset, the Vive Focus from HTC, was launched in January of this year, and more from other major companies like Oculus and Google are expected to follow over the next six months.

In a new report, Business Insider Intelligence lays out where the VR market is and forecasts how it will grow over the next five years. We dissect the various hardware categories and the unique strengths and opportunities of each, and identify how they will gain traction at different points of the market’s evolution. Finally, we examine various components impacting consumer adoption.

Here are some of the key takeaways:

Business Insider Intelligence forecasts shipments of all VR headsets to grow 69% year-over-year (YoY) to reach 13.5 million in 2018. Powering that growth is the stand-alone VR headset category, which is expected to account for 30% of total headsets shipped in the year ahead.
The VR hardware market is volatile because getting a device right is a balancing act. On one hand, the price point needs to be affordable for most consumers, and on the other, the experience has to be distinctive and immersive enough to convince a consumer to strap a visor to their face on a regular basis.
While only a handful of stand-alone VR headsets will hit the market in 2018, they mark the biggest step toward mainstream adoption of consumer-oriented VR headsets by making the technology more accessible for the average consumer.
Declining price points, coupled with high-quality headsets and the introduction of a game-changing app, are crucial for the VR industry to achieve before VR can really gain traction on a global scale.

In full, the report:

Forecasts the growth projections and shipment expectations of the global VR headset market, and breaks it up by the major headset categories.
Explores the four major segments in the current VR hardware market, defined by the hardware needed to power the experience — stand-alone, smartphone-powered, PC-powered, and game console-powered VR.
Identifies the key players shaping the burgeoning stand-alone VR headset segment.
Discusses the biggest challenges to VR development and adoption.

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melania donald trump

The list of President Donald Trump and First Lady Melania Trump's guests attending the State of the Union was released on Monday night — and one of those has a familiar last name.
Sixth grader Joshua Trump from Wilmington, Delaware will be in attendance. Joshua loves animals, art, science, and history, according to the White House, and he admires his uncle who serves in the U.S. Air Force.
Joshua has been invited in a display of patronymic solidarity from the first lady.
The full list of guests is below.

The list of President Donald Trump and First Lady Melania Trump's guests attending the State of the Union was released on Monday night — and one of the guests has a familiar last name.

Sixth grader Joshua Trump from Wilmington, Delaware will be in attendance. Joshua loves animals, art, science, and history, according to the White House, and he admires his uncle who serves in the U.S. Air Force.

"Unfortunately, Joshua has been bullied in school due to his last name," the White House statement also explains. "He is thankful to the First Lady and the Trump family for their support.

The list doesn't specify if Joshua is related to the first family, and INSIDER reached out to get confirmation. According to Delaware Online, Joshua is not related to the president.

In December of 2018, a Pennsylvania-based organization Teach Anti Bullying awarded Joshua Trump the Teach Anti Bullying Medal of Courage, as Joshua has reportedly dealt with teasing due to his last name. The bullying led to school officials using his father's surname Berto rather than his mom's last name, which is Trump.

One of the first lady's initiatives known as Be Best focuses on stopping bullying.

Invitees often have political significance, and in 1982, President Ronald Reagan began the tradition of acknowledging guests during the State of the Union address.

In addition to Joshua, the president and first lady's guests include a first responder who was wounded during the Pittsburgh synagogue attack, along with a survivor of that shooting, a former inmate who was released as a result of the First Step Act — the criminal justice reform bill passed by the House and Senate and signed into law last year by the president — the family of a couple killed by an undocumented immigrant, and several others.

Democratic lawmakers are also making political statements with their SOTU guests; an undocumented immigrant who used to work at one of Trump's golf clubs will be in attendance, along with the woman who confronted former Sen. Jeff Flake over Justice Brett Kavanaugh's confirmation.

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