Introduction to Capital One Software

For years, Capital One has stood apart in the financial services sector by positioning itself as a technology company that happens to be in banking. Now, it has taken a bold step further by moving from building world-class technology to selling it.

The Inspiration Behind Capital One Software

This transformation mirrors a playbook made famous by Amazon. When the retail giant developed the infrastructure to support its e-commerce platform, it soon realized the broader applicability of its innovation. The result was Amazon Web Services: a cloud platform born from internal necessity that evolved into a game-changing business. In similar fashion, Capital One’s internal journey to the cloud, and the accompanying technological challenges it overcame, have birthed Capital One Software, a commercial arm offering its hard-earned solutions to other enterprises.

Building on 23 Years of Experience

Ravi Raghu, President of Capital One Software, has been with the company for more than 23 years. In that time, he’s led multiple businesses and served on the executive committee, reporting directly to CEO Rich Fairbank. His career has been defined by both entrepreneurial initiative and a focus on building high-performing teams. That combination proved critical when Capital One launched its software business in 2022.

The Birth of Capital One Software

“Right from the founding days of our company, we realized that data and technology have been at the heart of everything we do,” Raghu reflected. “When you peel back the onion, it always comes back to data.” Capital One’s shift to the public cloud was pivotal. It wasn’t just a move to modernize infrastructure; it exposed gaps in existing enterprise-grade data management tools. That led the company to build its own solutions and recognize the market potential of those innovations.

The Journey to Becoming a Technology Company

“Our journey of becoming a technology company that happens to do banking has been a decade in the making,” Raghu explained. “As we went all in on the public cloud, we realized we had to build capabilities around data management that just didn’t exist off the shelf.” This internal necessity led to the development of Slingshot, Capital One Software’s first commercially available software product aimed at optimizing the use of Snowflake. Early validation came not just from internal success, but from Snowflake itself and its other enterprise clients.

Capital One as Alpha Client

In Raghu’s words, “Capital One is the Alpha client.” The software used internally is road-tested by teams led by Rob Alexander, Capital One’s longtime CIO, and then refined for commercial release. “My job is to take that capability and morph it,” Raghu said. “We ensure it’s not bespoke to Capital One, but applicable to any enterprise, with configuration flexibility and scalability built in.”

The Evolution to Data Management and Security: Introducing Databolt

While Slingshot was focused on Snowflake optimization, conversations with early users revealed another pressing challenge: data security. This insight led to Capital One Software’s second product, Databolt. “There’s a tsunami forming, and it’s driven by three macro forces,” Raghu said. “The rise of data breaches, increasing privacy regulations and the explosion of generative AI.” Databolt’s primary innovation lies in tokenization. As Raghu described it, “Instead of locking away sensitive data, tokenization gives you a surrogate that preserves format but is indecipherable. That means your systems and models work seamlessly without compromising security.”

Supporting Generative AI at Scale

Raghu sees a major role for Databolt in enabling secure AI adoption. “Traditional security says ‘lock everything down,’ but generative AI demands access to as much data as possible,” he underscored. “With tokenization, you can let your models learn without actually exposing the sensitive data.” Raghu predicts that AI’s rise will make robust, adaptable data security more essential than ever. “We believe tokenization will be what enables generative AI to scale responsibly,” he said.

Early Customer Success

Among Databolt’s early adopters is Early Warning Services, best known as the organization behind Zelle, the service that enables individuals to electronically transfer money from their bank account to another registered user’s bank account. With a complex, multi-bank data environment, they needed top-tier security and performance. According to Raghu, “They’ve been blown away by our performance.” Capital One’s existing relationships through Slingshot have also opened doors for Databolt, offering a natural entry point for further adoption.

What Comes Next

Looking ahead, Raghu envisions a suite of tools across the entire data lifecycle, which might include data publishing, governance, access control and infrastructure management. “We’re deeply tuned into customer feedback,” he said. “That’s what led to Databolt, and it’s how we’ll decide what comes next.” Though Capital One is just getting started with its commercial software journey, the ambition is clear: to turn its internal expertise into external impact, helping enterprises navigate complex data environments with confidence.

A Virtuous Cycle

“We [at Capital One Software] stand on the shoulders of all the tech transformation that Capital One has done,” Raghu reflected. “Now we get to build for the world. And as we learn from the world, we bring those insights back to strengthen Capital One. It’s a virtuous cycle.”

Conclusion

Capital One Software is poised to make a significant impact in the technology sector, leveraging its expertise in data management and security to help enterprises navigate the complexities of the digital landscape. With its innovative products, such as Slingshot and Databolt, and its commitment to customer feedback, the company is well-positioned for success.

FAQs

Q: What is Capital One Software?
A: Capital One Software is a commercial arm of Capital One that offers software solutions to other enterprises, leveraging the company’s expertise in data management and security.
Q: What is Slingshot?
A: Slingshot is Capital One Software’s first commercially available software product, aimed at optimizing the use of Snowflake.
Q: What is Databolt?
A: Databolt is Capital One Software’s second product, focused on data security and tokenization.
Q: What is tokenization?
A: Tokenization is a process that replaces sensitive data with a surrogate that preserves format but is indecipherable, allowing systems and models to work seamlessly without compromising security.
Q: What is the goal of Capital One Software?
A: The goal of Capital One Software is to turn its internal expertise into external impact, helping enterprises navigate complex data environments with confidence.

Introduction to Tariffs and Digital Storage

With the ever-evolving trade war and tariffs that likely include digital storage and memory products as well as other electronics, it seemed like a good idea to point out that most of the world’s digital storage and memory products are made outside of the USA. Let’s look at the numbers.

The Importance of Digital Storage and Memory

Digital storage and memory are where the data lives that will fuel the growth of AI training and applications and drive the growth of data centers. For instance, high bandwidth memory used with GPUs uses stacks of DRAM. Revenue for DRAM used in all applications was more than $28B in CQ4 2024. According to Trendforce, Samsung and SK hynix, both based in Korea, together make over 75% of the world DRAM revenue, followed by Micron, based in the US, at about 22%. The other DRAM suppliers are also based in Asia.

NAND Flash Revenue

Likewise, Samsung and SK hynix, including SK’s Solidgm business unit, made about 56% of NAND flash revenue in CQ4 2024. Kioxia and SanDisk, recently spun off from WDC, and with all NAND die manufacturing in Japan, together made about 26% of that quarter’s revenue. Micron, the only one of these manufacturers with production in the USA, made about 14% of CQ4 2024 NAND flash revenue. Total NAND flash memory revenue in CQ4 2024 was about $16.5B according to Trendforce.

Hard Disk Drives and Other Storage Devices

All hard disk drives are assembled in Asia with components that go into those drives mostly from various places in Asia, including China. Also, magnetic tape is manufactured in Japan as are many of the optical discs. In addition to manufacturing the storage and memory devices, many storage systems that use these devices are assembled in Asia with many of the other components locally sourced as well. Coughlin Associates estimates that total HDD CQ4 2024 revenue was about $5.7B. Perhaps magnetic tape revenues were somewhat over another $1B.

Total Storage and Memory Revenue

Altogether, CQ4 2024 storage and memory revenue was somewhat higher than $51B. There are other standalone memory products on the market, but their shipping volume and revenue are much less than for DRAM and NAND Flash.

Impact of Tariffs

So, aside from Micron, none of the other memory and storage suppliers make their products in the USA and thus these products could see at least 10% tariffs or higher, depending upon how these tariffs evolve. Even Micron makes most of its leading-edge memory devices in Japan and Taiwan, although it is expanding its US manufacturing footprint in Boise, Idaho and Clay, New York, with advanced chips manufactured domestically in 2026.

Conclusion

So, tariffs will likely lead to price increases for all types of memory and storage technology unless these products are made exempt from tariffs. This could impact the growth of new data centers for developing AI products and applications. Most digital storage and memory devices are manufactured in Asia as are their components. Tariffs on these products will increase their costs and that could be a drag on data center growth to support AI and other applications.

FAQs

Q: Where are most digital storage and memory products manufactured?
A: Most digital storage and memory products are manufactured in Asia.
Q: What is the potential impact of tariffs on digital storage and memory products?
A: Tariffs will likely lead to price increases for all types of memory and storage technology unless these products are made exempt from tariffs.
Q: Which companies are the leading manufacturers of DRAM and NAND flash?
A: Samsung, SK hynix, and Micron are the leading manufacturers of DRAM, while Samsung, SK hynix, Kioxia, and SanDisk are the leading manufacturers of NAND flash.
Q: What is the estimated total revenue of the storage and memory market in CQ4 2024?
A: The estimated total revenue of the storage and memory market in CQ4 2024 is somewhat higher than $51B.

With Future of work innovations revolutionizing the modern workforce, the gig economy has emerged as a dominant force, transforming the way we work and interact with employers. The rise of freelancing has created new opportunities for individuals to take control of their careers, offering flexibility, autonomy, and unlimited earning potential. As the gig economy continues to grow, it’s essential to understand its impact on the workforce and the benefits it offers to both workers and employers.

What is the Gig Economy?

The gig economy refers to a labor market characterized by short-term, flexible work arrangements, often through online platforms. This economy has created a new breed of workers, known as freelancers or independent contractors, who offer their skills and services on a project-by-project basis. The gig economy has disrupted traditional employment models, providing workers with the freedom to choose their own projects, set their own rates, and! work at their own pace.

Key Characteristics of the Gig Economy

The gig economy is defined by several key characteristics, including flexibility, autonomy, and project-based work. Freelancers are not tied to a single employer, and they can choose to work on multiple projects simultaneously. This flexibility allows workers to pursue their passions, develop new skills, and create a career that aligns with their values and goals. Additionally, the gig economy has created new opportunities for entrepreneurship, as freelancers can market their services and build their own client base.

The Benefits of Freelancing

Freelancing offers numerous benefits to workers, including flexibility, autonomy, and unlimited earning potential. Freelancers can choose their own projects, set their own rates, and work at their own pace, allowing them to achieve a better work-life balance. Additionally, freelancing provides opportunities for skill development, as workers can pursue projects that align with their interests and goals. Freelancers also have the freedom to work with multiple clients, diversifying their income streams and reducing their dependence on a single employer.

Financial Benefits of Freelancing

Freelancing offers financial benefits, including the potential for higher earnings and diversified income streams. Freelancers can set their own rates, allowing them to earn more than they would in a traditional employment arrangement. Additionally, freelancers can work with multiple clients, creating multiple income streams and reducing their financial risk. Freelancers also have the freedom to pursue high-paying projects, allowing them to increase their earnings and achieve financial stability.

The Impact of the Gig Economy on Employers

The gig economy has also had a significant impact on employers, providing them with access to a global talent pool and reducing their labor costs. Employers can hire freelancers on a project-by-project basis, allowing them to reduce their overhead costs and increase their flexibility. Additionally, the gig economy has created new opportunities for innovation, as employers can tap into the skills and expertise of freelancers to develop new products and services.

Challenges Facing Employers in the Gig Economy

Despite the benefits of the gig economy, employers face several challenges, including the need to manage a remote workforce and ensure compliance with labor laws. Employers must also develop new strategies for attracting and retaining top talent, as freelancers have the freedom to choose their own projects and clients. Additionally, employers must navigate the complexities of intellectual property and confidentiality, as freelancers often work on multiple projects simultaneously.

The Future of Work in the Gig Economy

The gig economy is expected to continue growing, with more workers turning to freelancing as a way to achieve flexibility, autonomy, and unlimited earning potential. As the gig economy evolves, we can expect to see new innovations and technologies emerge, making it easier for workers to find projects and for employers to manage their remote workforces. Additionally, governments and regulatory bodies will need to develop new policies and laws to govern the gig economy, ensuring that workers are protected and that employers are compliant with labor laws.

Preparing for the Future of Work

To prepare for the future of work in the gig economy, workers and employers must develop new skills and strategies. Workers must be adaptable, flexible, and willing to continuously develop new skills to remain competitive. Employers must develop new management strategies, including the use of technology to manage remote workforces and ensure compliance with labor laws. Additionally, governments and regulatory bodies must develop new policies and laws to govern the gig economy, ensuring that workers are protected and that employers are compliant with labor laws.

Conclusion

In conclusion, the gig economy has transformed the way we work, offering flexibility, autonomy, and unlimited earning potential. As the gig economy continues to grow, it’s essential to understand its impact on the workforce and the benefits it offers to both workers and employers. By developing new skills and strategies, workers and employers can thrive in the gig economy, achieving success and financial stability in a rapidly changing workforce.

Frequently Asked Questions

What is the gig economy?

The gig economy refers to a labor market characterized by short-term, flexible work arrangements, often through online platforms.

What are the benefits of freelancing?

Freelancing offers numerous benefits, including flexibility, autonomy, and unlimited earning potential. Freelancers can choose their own projects, set their own rates, and work at their own pace, allowing them to achieve a better work-life balance.

How do I get started as a freelancer?

To get started as a freelancer, you’ll need to identify your skills and expertise, develop a professional online presence, and create a portfolio of your work. You can then use online platforms to find clients and projects that align with your skills and goals.

What are the challenges facing employers in the gig economy?

Employers face several challenges in the gig economy, including the need to manage a remote workforce and ensure compliance with labor laws. Employers must also develop new strategies for attracting and retaining top talent, as freelancers have the freedom to choose their own projects and clients.

How can I prepare for the future of work in the gig economy?

To prepare for the future of work in the gig economy, you’ll need to develop new skills and strategies, including adaptability, flexibility, and a willingness to continuously develop new skills. You’ll also need to stay up-to-date with the latest technologies and innovations, and be willing to pivot and adjust to changing circumstances.