We will begin the live Zoom component of Tekedia Mini-MBA tomorrow. I will discuss the mission of firms and why innovation is indispensable to achieving whatever organizations set out to accomplish. Companies must continuously innovate to improve how they combine and recombine the factors of production to create products and services that solve market frictions.

Innovation is not an abstract ideal; it is an operational discipline. We will unpack the components of that process and how they work together to drive real outcomes.

What is symphonic innovation? It is innovation that is not domain-specific, but is anchored on a unified and harmonious approach in the deployment of technology and business components to accelerate productivity gains and cushion competitiveness. With Symphonic Innovation, you do not deploy and launch for blockchain, for example, only to be tripped by AI; you launch with a mindset that these technologies and business components are like extended musical compositions which must be carefully organized to make the orchestra an unforgettable experience.

How do you make business an orchestra like experience? You solve equations of markets. Together, we will solve them over 12 weeks.

Great Company = Awesome Products + Superior Execution

Innovation = Invention + Commercialization.

Sat, Feb 14 | 7pm-8.30pm WAT | Innovation, Growth and the Mission of Firms – Ndubuisi Ekekwe | Zoom link

Welcome.

Russia’s full block of WhatsApp intensifies pressure on Meta’s messaging business at a time when the company is also facing heightened antitrust scrutiny in Europe.

Russia has completely blocked WhatsApp, the messaging platform owned by Meta Platforms, in what the Kremlin described as a response to the company’s failure to comply with domestic law.

The decision removes the country’s most widely used messenger from the Russian internet and deepens Meta’s regulatory challenges abroad, particularly in Europe.

Kremlin spokesman Dmitry Peskov confirmed the move on Thursday.

“Due to Meta’s unwillingness to comply with Russian law, such a decision was indeed taken and implemented,” Peskov told reporters.

He urged Russians to switch to MAX, a state-backed messaging service, calling it “an accessible alternative, a developing messenger, a national messenger, and it is available on the market for citizens as an alternative.”

WhatsApp said the decision would undermine secure communications.

“Trying to isolate over 100 million users from private and secure communication is a backwards step and can only lead to less safety for people in Russia,” the company said in a statement.

The ban follows months of escalating restrictions imposed by Roskomnadzor, Russia’s state communications watchdog. In August, authorities began restricting WhatsApp and other foreign messaging platforms, disabling voice calls after accusing them of failing to share information with law enforcement in cases related to fraud and terrorism.

In December, Roskomnadzor announced further measures to gradually limit the service, accusing WhatsApp of continuing to violate Russian law and of being used “to organize and carry out terrorist acts on the territory of the country, to recruit their perpetrators and to commit fraud and other crimes.”

Russian courts have previously fined WhatsApp for failing to remove prohibited content. Authorities have also demanded that the company establish a local representative office in Russia, a legal requirement imposed on foreign technology firms operating in the country.

Meta itself has already been designated an extremist organization in Russia, following earlier bans on Facebook and Instagram.

The technical mechanism behind the latest block appears to involve removing WhatsApp-related domain names from Russia’s national domain registry, preventing devices inside the country from resolving the app’s IP addresses. Access is now largely limited to users employing virtual private networks, which are themselves subject to increasing regulatory constraints.

Sovereign Internet Strategy and Domestic Alternatives

The move aligns with Russia’s broader push to construct what officials describe as a “sovereign” communications infrastructure. The policy seeks to ensure that foreign-owned digital platforms either comply with Russian legislation or withdraw from the market.

Authorities have promoted MAX, a state-backed messenger that integrates government services into its platform. Critics argue the app could facilitate state surveillance. Russian officials reject that characterization, saying the service is intended to improve convenience and centralize access to public services.

In Moscow, the reaction to the ban was mixed. Activists briefly locked the doors of Roskomnadzor’s offices with a bicycle chain and displayed a poster reading, “Give us an unregulated internet – Russia without Roskomnadzor.” Some residents described the move as a violation of consumer choice, while others said alternative messaging platforms would suffice.

The elimination of WhatsApp, however, removes a central communications channel for millions of users, businesses, and cross-border contacts.

Broader Regulatory Headwinds in Europe

The Russian block comes at a sensitive moment for WhatsApp and Meta more broadly in Europe, where regulators have intensified scrutiny under competition and digital market rules.

WhatsApp, which has integrated messaging infrastructure across Meta’s platforms, is operating in a regulatory environment shaped by the European Union’s Digital Markets Act (DMA). Under the DMA, large online platforms designated as “gatekeepers” must comply with interoperability, data use, and competition requirements. The European Commission has examined how Meta structures data sharing and integration between WhatsApp and other services within its ecosystem.

European competition authorities have also scrutinized how Meta leverages its scale across messaging, social networking, and digital advertising markets. The latest is the inquiry into Meta’s policy, restricting the use of third-party AI on WhatsApp. Antitrust regulators are increasingly focused on whether dominant platforms restrict rivals’ access to user data or lock in users through ecosystem integration.

WhatsApp is not only a consumer communications tool for Meta, but a strategic asset in payments, business messaging, and cross-platform integration. Restrictions in large markets limit growth opportunities and complicate compliance strategies.

Amazon Web Services Chief Executive Matt Garman said investor anxiety over artificial intelligence undermining traditional software companies has likely gone too far, even as the sector posts one of its steepest pullbacks in years.

“Look, my own opinion is that much of the fear is overblown,” Garman told CNBC’s Jon Fortt on Thursday, addressing concerns that generative AI platforms could erode the dominance of large software-as-a-service providers.

Technology shares, particularly enterprise software names, have fallen sharply in 2026 following the rapid commercialization of AI tools built on models from companies such as OpenAI and Anthropic. The selloff reflects mounting concern that AI-native applications could commoditize existing SaaS offerings or reduce enterprise spending on legacy systems.

The iShares Expanded Tech-Software Sector ETF is down 24% this year, putting it on track for its worst performance since 2022, when inflation and rising interest rates forced companies to trim technology budgets after a surge in pandemic-driven digital investment.

Market analysts have described the correction as a “SaaS apocalypse,” citing slowing growth rates, compressed valuation multiples, and uncertainty about how AI will reshape software consumption patterns.

Cloud Strength and AI Infrastructure Demand

The turbulence in software contrasts with AWS’s own results. Parent company Amazon reported that fourth-quarter revenue at its cloud infrastructure division rose approximately 24% year over year to $35.6 billion, exceeding analyst expectations. AWS posted a 35% operating margin, slightly higher than the previous quarter, underscoring sustained profitability in its core business.

The divergence highlights a structural distinction in the AI value chain. While application-layer software companies face questions about displacement, hyperscale cloud providers supply the compute, storage, and networking infrastructure required to build and deploy AI systems at scale.

“There’s a huge disruption,” Garman said. “AI is absolutely a disruptive force that’s going to change how software is consumed and how it’s built. And I would argue that the systems of record, as you call them, the SaaS providers and the large players of today have an inside track to winning that business.”

Systems of record — enterprise platforms managing financial data, human resources, compliance, and customer relationships — are deeply embedded within corporate workflows. Replacing them entails operational risk, data migration complexity, and integration challenges, which can slow wholesale displacement.

AWS generates revenue from established vendors, including Adobe, Intuit, and Zillow, while also benefiting from AI model developers expanding compute usage. In November, AWS disclosed a $38 billion spending commitment from OpenAI, reflecting the scale of infrastructure required to train and run large language models.

“Our perspective is that our customers are going to consume more compute technology and more infrastructure than they ever have,” Garman said, arguing that whether companies build AI internally or buy AI-enabled SaaS, overall infrastructure demand should rise.

Slowing SaaS Growth and Broader Spillover

Even as infrastructure spending climbs, growth among major SaaS firms has moderated. ServiceNow, an AWS customer, recently reported fourth-quarter revenue growth of 20.7% year over year, down from nearly 26% two years earlier. While still strong relative to many sectors, the deceleration has weighed on valuations that were priced for sustained hypergrowth.

Investor concern extends beyond enterprise software. Florida-based Algorhythm Holdings said Thursday that an AI-powered product enabled logistics clients to quadruple freight volumes without increasing headcount. Shares of C.H. Robinson Worldwide fell about 23% in midday trading, reflecting fears that AI-driven efficiency gains could pressure revenue models tied to transaction volume or labor-intensive processes.

The underlying debate centers on whether generative AI will cannibalize traditional software categories or expand total addressable markets by unlocking new use cases. Historically, major computing transitions — from on-premises infrastructure to cloud, and from desktop software to web applications — have produced both displacement and expansion. Companies that adapted architecture and pricing models often retained leadership; those that failed to evolve lost relevance.

The current correction represents a repricing of growth expectations and risk premiums for investors. For AWS, the calculus differs. As long as AI development requires large-scale compute, hyperscale cloud providers remain positioned to capture incremental spending, regardless of which application-layer companies ultimately prevail.

Garman’s remarks suggest confidence that AI will alter the shape of enterprise software without necessarily shrinking its economic footprint. The market’s volatility indicates that investors are still determining where value will accrue in an ecosystem being rapidly rewritten by artificial intelligence.