Tag: SoftBank

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Supplier Report: 10/26/2018

Amazon’s stock took a hit this week due to analysts’ lowered expectations about Q4 spending despite record profits. Will that retail downturn leak into corporate spending?

Oracle is having a moment thanks to their annual “Oracle World” conference. The company announced the acquisition of an AI company and maintained their tradition of s**t talking about their competitors in the press.

Acquisitions

  • Oracle acquires DataFox, a developer of ‘predictive intelligence as a service’ across millions of company records

    Oracle today announced that it has made another acquisition, this time to enhance both the kind of data that it can provide to its business customers, and its artificial intelligence capabilities: it is buying DataFox, a startup that has amassed a huge company database — currently covering 2.8 million public and private businesses, adding 1.2 million each year — and uses AI to analyse that to make larger business predictions.

    Terms of the deal do not appear to have been disclosed but we are trying to find out. DataFox — which launched in 2014 as a contender in the TC Battlefield at Disrupt — had raised just under $19 million and was last valued at $33 million back in January 2017, according to PitchBook. Investors in the company included Slack, GV, Howard Linzon, and strategic investor Goldman Sachs among others.

    https://techcrunch.com/2018/10/22/oracle-acquires-datafox-a-developer-of-predictive-intelligence-as-a-service-and-a-trove-of-company-information/

  • Facebook on Hunt for Big Cybersecurity Acquisition

    In its current acquisition efforts, the company is most likely to look at software that it could wrap into its own systems, including things like analytics or tools to flag unauthorized access, people familiar with its thinking said. Companies in these categories include Demisto, JASK and Swimlane, each of which are privately held and would likely cost somewhere in the hundreds of millions of dollars. It could also look for technology that could help users keep their accounts more secure or add privacy features, the people said. Some companies in this category include ZeroFOX and SafeGuard Cyber, both of which help assess accounts for risk of attack or prevent attacks. ZeroFOX has raised more than $80 million to date and SafeGuard Cyber $14.9 million.

    https://www.theinformation.com/articles/facebook-on-hunt-for-big-cybersecurity-acquisition

Artificial Intelligence

  • China’s Baidu challenges Google with A.I. that translates languages in real-time

    Baidu is China’s largest search engine and for that reason has often been compared to Google. Its latest product comes over a year after Google unveiled the Pixel Buds, a set of wireless headphones that it claims can do live translation.

    Huang said Baidu is looking to integrate the AI interpreter into its Wi-Fi translator, a product it unveiled earlier this year which is both a portable internet hub and translator. The company will also use this technology to translate speeches at its annual Baidu World Conference on November 1 in Beijing, China.

    https://www.cnbc.com/2018/10/24/baidu-challenges-google-with-ai-that-translates-languages-in-real-time.html

Cloud

  • Oracle’s Larry Ellison keeps poking AWS because he has no choice

    This was about showmanship. It was about chest beating and it’s about going after the market leader because frankly, the man has little choice. By now, it’s well documented that Oracle was late to the cloud. Larry Ellison was never a fan and he made it clear over the years, but today as the world shifts to a cloud model, his company has had to move with it.

    To make matters worse, Oracle’s late start puts it well behind market leader AWS. Hence, Ellison shouting from the rooftops how much better his company’s solutions are and how insecure the competitors are. Synergy Research, which follows the cloud market closely, has pegged Amazon’s cloud market share at around 35 percent. It has Oracle in the single digits in the most recent data from last summer (and the market hasn’t shifted dramatically since it came out with this data).

    https://techcrunch.com/2018/10/24/oracles-larry-ellison-keeps-poking-aws-because-he-has-no-choice/

  • Microsoft crushes quarterly earnings as cloud revenues rise

    Azure revenue grew 93 percent during the company’s fiscal third quarter and 89 percent during its fourth quarter ended in June. Microsoft does not break out specific revenue dollar figures for Azure.

    Microsoft’s commercial cloud business — which combines Azure with subscription cloud-software services Microsoft 365 and Dynamics 365 — also grew at a slightly slower rate than during the previous quarter, but still increased 47 percent to $8.5 billion.

    https://www.seattletimes.com/business/microsoft/microsoft-crushes-quarterly-earnings-as-cloud-revenues-rise/

Security

  • Yahoo to pay $50M, other costs for massive security breach

    Yahoo has agreed to pay $50 million in damages and provide two years of free credit-monitoring services to 200 million people whose email addresses and other personal information were stolen as part of the biggest security breach in history.

    The restitution hinges on federal court approval of a settlement filed late Monday in a 2-year-old lawsuit seeking to hold Yahoo accountable for digital burglaries that occurred in 2013 and 2014, but weren’t disclosed until 2016.

    https://www.apnews.com/2af6d21f80aa4e9483fa32e26f03417c

  • Japan and China Are Getting Along Better, but Not When It Comes to Tech

    Yet Japanese government and business leaders express views in line with Vice President Mike Pence’s recent depiction of China as a nation that seeks technological dominance “by any means necessary” including “forced technology transfer [and] intellectual property theft.”

    China is “making unacceptable demands and seeking to exclude foreign businesses,” said a top Japanese official.

    One response, the official said, would be to block Chinese tech companies from global markets.

    https://www.wsj.com/articles/tech-rivalry-shadows-japan-china-summit-1540306548?ns=prod/accounts-wsj

Software/SaaS

  • Linus Torvalds is Back With Linux

    Almost exactly a month after Torvalds’ self-imposed exile, he is back at the helm of the project he started nearly three decades ago. In a note sent to the Linux Kernel mailing list on Monday, Greg Kroah-Hartman, a lead Linux developer, said that he is “handing the kernel tree back” to Torvalds.

    “These past few months has [sic] been a tough one for our community, as it is our community that is fighting from within itself, with prodding from others outside of it,” Kroah-Hartman wrote. “So here is my plea to everyone out there. Let’s take a day or two off, rest, relax with friends by sharing a meal, recharge, and then get back to work.”

    https://motherboard.vice.com/en_us/article/3km9qb/linus-torvalds-is-back-with-linux

Datacenter/Hardware

  • Investigating Implausible Bloomberg Supermicro Stories

    In this article, we have shown why the technical details of the Bloomberg alleged hack are inaccurate and/or implausible. These technical details were offered to Bloomberg through anonymous sources, so we have no way of doing further fact-checking. We showed why, even if a chip can be produced and placed it would not work as Bloomberg reports. CEOs such as Tim Cook of Apple and Charles Liang of Supermicro and all of the named companies have said that the reporting was untrue or inaccurate. The three security experts named in the two Bloomberg pieces have expressed reservations about what and how Bloomberg has presented the story.

    Bloomberg is standing by their piece, citing 17 sources and over 100 interviews. It seems 9 sources between Apple and Supermicro have contradicting evidence offered by CEOs with a duty to make truthful statements about their companies. There are 2 cited security experts who have reservations, as does the lynchpin expert in the follow-up piece but we do not know if they are included in the tally.

    https://www.servethehome.com/investigating-implausible-bloomberg-supermicro-stories/

Other

  • SoftBank Chief Is Said to Have Canceled Appearance at Saudi Conference

    Word of Mr. Son’s decision not to attend came on Tuesday, the first day of the conference. A representative for SoftBank, the Japanese internet, energy and financial conglomerate, did not immediately respond to a request for comment

    However, Saleh Romeih, an executive with Softbank’s Vision Fund, the biggest technology fund on record, spoke on a panel at the conference on Tuesday, a spokesman for the fund said. The Saudi government is providing $45 billion of the Vision Fund’s nearly $100 billion.

    https://www.nytimes.com/2018/10/23/business/saudi-investment-softbank.html

  • Amazon shares fall as record profits are offset by conservative holiday forecasts

    Amazon is still raking in the cash, but its slower than expected customer growth in its web services offerings and a weaker than expected sales outlook for the holiday season shook investor confidence and caused the stock to slide around 5 percent in after-hours trading.

    Profits for the company continued to soar, reaching $2.9 billion, or $5.75 per share, up from $2.5 billion in the second quarter, and handily beating analysts’ estimates of $3.14 per share. Those earnings were offset by slower revenue growth at $56.6 billion versus the $57.1 billion analysts had expected.

    https://techcrunch.com/2018/10/25/amazon-shares-fall-as-record-profits-are-offset-by-conservative-holiday-forecasts/

  • Silicon Valley’s dirty secret: Using a shadow workforce of contract employees to drive profits

    It’s not only in Silicon Valley. The trend is on the rise as public companies look for ways to trim HR costs or hire in-demand skills in a tight labor market. The U.S. jobless rate dropped to 3.7 percent in September, the lowest since 1969, down from 3.9 percent in August, according to the Bureau of Labor Statistics.

    Some 57.3 million Americans, or 36 percent of the workforce, are now freelancing, according to a 2017 report by Upwork. In San Mateo and Santa Clara counties alone, there are an estimated 39,000 workers who are contracted to tech companies, according to one estimate by University of California Santa Cruz researchers.

    https://www.cnbc.com/2018/10/22/silicon-valley-using-contract-employees-to-drive-profits.html

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Supplier Report: 10/12/2018

The Source: Boo Hoo Project Jedi

The Pentagon’s $10B JEDI project has had cloud providers up in arms for months. They claim the RFP favors Amazon over everyone else due to scale and the government’s refusal to break up the hosting solution to multiple providers.

Google has dropped out of the bidding process stating the project doesn’t align to their values (or perhaps they realized they wouldn’t win and this is PR spin).

IBM is filing formal complaints days before the final proposal is due while Oracle has been filing complaints for months.

Meanwhile, Apple bought a few companies that allow them to further lock down their supply chain and control the technology that powers their devices.

Acquisitions

  • Apple inks $600M deal to license IP, acquire assets and talent from Dialog to expand chipmaking in Europe

    Apple is paying $300 million in cash to buy a portion of Dialog Semiconductor, a chipmaker based out of Europe that it has been working with since the first iPhone. On top of the $300 million portion of the deal, Apple is also committing a further $300 million to make purchases from the remaining part of Dialog’s business, making it a $600 million deal in total.

    https://techcrunch.com/2018/10/10/apple-is-paying-300m-in-cash-to-buy-a-part-of-dialog-semiconductor-and-expand-its-chipmaking-in-europe/

  • Apple confirms it has acquired Spektral, a Danish computer vision startup, for augmented reality technology

    Apple has purchased Spektral, a computer vision company based out of Denmark that has worked on segmentation technology, a more efficient way to “cut out” figures from their backgrounds in digital images and videos, reportedly for over $30 million.

    This type of technology can be used, for example, to make quicker and more accurate/realistic cut-out images in augmented reality environments, but also for more standard applications like school photos. That was actually the first market the startup targeted, in 2015, although it appeared to shift strategy after that to build up IP and make deeper inroads into video. You can see a demo of how its technology works at the bottom of this post.

    https://techcrunch.com/2018/10/11/apple-has-acquired-spektral-a-danish-computer-vision-startup-for-augmented-reality-technology/

  • SoftBank is considering taking a majority stake in WeWork

    SoftBank may soon own up to 50 percent of WeWork, a well-funded provider of co-working spaces headquartered in New York, according to a new report from The Wall Street Journal.

    SoftBank is reportedly weighing an investment between $15 billion and $20 billion, which would come from its $92 billion Vision Fund, a super-sized venture fund led by Japanese entrepreneur and investor Masayoshi Son.

    https://techcrunch.com/2018/10/09/softbank-is-considering-taking-a-majority-stake-in-wework/

  • LinkedIn acquires employee engagement platform Glint

    Terms of the deal are not being disclosed. For some context, Glint had raised nearly $80 million — including these rounds for $27 million and and $20 million in the last two years — was valued at around $220 million in its last round according to PitchBook. Investors included Bessemer Venture Partners, Norwest Venture Partners, Shasta Ventures and Meritech Capital Partners.

    https://techcrunch.com/2018/10/08/linkedin-acquires-employee-engagement-and-retention-platform-glint/

Artificial Intelligence

  • Amazon Pulled the Plug on an AI Recruitment Tool That Was Biased Against Women

    Reuters reported on Wednesday that five people close to the project told the outlet that in 2014 a team began building computer programs to automate and expedite the search for talent. Such systems use algorithms that “learn” which job candidates to look for after processing a large amount of historical data. By 2015, the team realized the AI wasn’t weighing candidates in a gender-neutral way.

    “Everyone wanted this holy grail,” one of Reuters’ sources, all of whom requested to be anonymous, said in the report. “They literally wanted it to be an engine where I’m going to give you 100 resumes, it will spit out the top five, and we’ll hire those.”

    According to those engineers, the AI reduced job candidates to a star-review system, like it was reviewing a product on Amazon’s retail site. The computer models were trained on resumes submitted over a 10-year period, most of which came from men. It learned that a successful resume was a man’s resume.

    https://motherboard.vice.com/en_us/article/evwkk4/amazon-ai-recruitment-hiring-tool-gender-bias

Cloud

  • Google Drops Out of Pentagon’s $10 Billion Cloud Competition

    Google’s announcement on Monday came just months after the company decided not to renew its contract with a Pentagon artificial intelligence program, after extensive protests from employees of the internet giant about working with the military. The company then released a set of principles designed to evaluate what kind of artificial intelligence projects it would pursue.

    “We are not bidding on the JEDI contract because first, we couldn’t be assured that it would align with our AI Principles,” a Google spokesman said in a statement. “And second, we determined that there were portions of the contract that were out of scope with our current government certifications.”

    https://www.bloomberg.com/news/articles/2018-10-08/google-drops-out-of-pentagon-s-10-billion-cloud-competition

  • IBM protests $10B JEDI solicitation

    It is no secret that DOD has steadfastly refused to budge from its strategy of awarding the contract to a single cloud service provider. This has been despite objections from many in industry and pressure from Congress to move toward a multiple award strategy.

    IBM has been commenting and reviewing revisions to the final solicitation but now that the due date is upon us, the next logical step was to file its own protest.

    IBM’s protest filing is not publicly available but Sam Gordy, IBM’s general manager for federal, laid out his argument in a blog posting as well as in an interview with Washington Technology.

    https://washingtontechnology.com/blogs/editors-notebook/2018/10/ibm-jedi-protest.aspx

Security

  • The breach that killed Google+ wasn’t a breach at all

    The vulnerability itself seems to have been relatively small in scope. The heart of the problem was a specific developer API that could be used to see non-public information. But crucially, there’s no evidence that it actually was used to see private data, and given the thin user base, it’s not clear how much non-public data there really was to see. The API was theoretically accessible to anyone who asked, but only 432 people actually applied for access (again, it’s Google+), so it’s plausible that none of them ever thought of using it this way.

    https://www.theverge.com/2018/10/9/17957312/google-plus-vulnerability-privacy-breach-law

Software/SaaS

  • Microsoft Just Did Something Big With 60,000 Patents

    The technology giant said Wednesday it would contribute more than 60,000 of its patents to the Open Invention Network. This is noteworthy because the group’s member companies cross-license their patents to each other to prevent future lawsuits in which companies may allege that another firm’s technology infringes on their own patents.

    http://fortune.com/2018/10/10/microsoft-patents-open-source/

Other

  • Google Appeals $5 Billion EU Fine in Android Case

    Google’s appeal is the latest volley in a series of actions that European regulators and legislators are directing at big tech companies—many led by EU antitrust commissioner Margrethe Vestager, who has emerged as one of the most avid global regulators for big tech firms. Google is already appealing her 2017 decision that fined Google €2.43 billion for allegedly abusing the power of its search engine to favor its own service to show product ads on behalf of online retailers.

    https://www.wsj.com/articles/google-appeals-5-billion-eu-fine-in-android-case-1539109713

Photo by Kelly Sikkema on Unsplash

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Supplier Report: 3/2/2018

Facebook and Twitter are fighting for the hearts and minds of social media users.  As Facebook struggles with “fake news” and changes their algorithms (hurting some legitimate sites in the process), Twitter is using this moment to embrace the press… but will anything improve?

Amazon has purchased another home camera company.  It was announced they purchased Ring (a video doorbell maker) after purchasing Blink in December.  Amazon really wants to find away to make customers comfortable with letting them into their homes…

On the Amazon topic, they are in a race with Apple to become the first company to be worth a trillion dollars…

Acquisitions

  • Amazon Acquires Ring, Maker of Video Doorbells

    Amazon.com Inc. acquired Ring, maker of video doorbells, in a deal valued at more than $1 billion, a person familiar with the transaction said, giving the online giant a bigger foothold in the burgeoning internet business of home security.

    https://www.wsj.com/articles/amazon-acquires-ring-maker-of-video-doorbells-1519768639

  • Nokia acquires Unium, a mesh WiFi startup that works with Google Fiber, as part of big home WiFi push

    While Nokia’s former handset business forges ahead with its new device strategy under licensee HMD, Nokia itself has taken one more step to build out its business with carriers in a new wave of services. To coincide with MWC in Barcelona and a bigger step into the WiFi business, the company today announced that it has acquired Unium, a startup out of Seattle that builds technology for mesh WiFi for home networking services.

    Unium’s tech is used to address one of the biggest pain-points in home WiFi today: it helps fill in dead spots in home WiFi arrangements, where you may not get signal or interference from other networks, and the accompanying security issues that might come alongside those.

    https://techcrunch.com/2018/02/25/nokia-acquires-unium-a-mesh-wifi-startup-that-works-with-google-fiber-as-part-of-big-home-wifi-push/?ncid=rss

Artificial Intelligence

  • The Future of Policing Is Being Hashed Out in Secret (thanks JD)

    It should go without saying that experimenting with predictive AI in real-world law enforcement demands public oversight and awareness. The debate that is now beginning should have been had before the technology was used to build indictments, not afterward. Nevertheless, it would also be a mistake if the only outrage is over the failure to make public disclosures. The more important conversation must address the deeper issues this case raises.

    Law enforcement — and criminal justice more broadly — must be evaluated on two separate criteria: pragmatic effectiveness and legal justice. On the first criterion, it’s important to note that there isn’t yet any clear evidence that the Palantir-New Orleans partnership works. Palantir would like to take credit for a New Orleans crime dip, but the data and the timing don’t necessarily support that. For now, the efficacy of machine-based crime prediction and protection must be treated as unproven at best.

    https://www.bloomberg.com/view/articles/2018-02-28/artificial-intelligence-in-policing-advice-for-new-orleans-and-palantir

  • Amazon vs. Google vs. Microsoft: Big tech firms gird for AI talent battle

    As Quartz points points out, top AI talent is scarce “and companies are willing to pay millions to obtain new talent.” A case-in-point, Google paid more than $500 million in 2014 for UK-based AI startup DeepMind. And we’ll see millions more paid for AI startups, scientists and engineers as the talent war heats up.

    Separately, Microsoft’s Cortana has a new boss. Javier Soltero, who formerly worked on Office will now be in charge of Cortana. He’ll report to Harry Shum, who’s the head of AI for the company.

    https://martechtoday.com/amazon-vs-google-vs-microsoft-big-tech-firms-gird-ai-talent-battle-211894
    They went with “gird” in the headline, I wonder if AI wrote it.

Cloud

  • The Best Thing for Dropbox Was Breaking Up With the Cloud

    Those paragraphs in the public offering document (page 67) summarize the difficult and nerdy work to shift a vast volume of Dropbox users’ digital files from Amazon’s computer networks to Dropbox’s own and to close dormant accounts to free up storage capacity. This yearslong shift to wean Dropbox off Amazon Web Services wasn’t glamorous work, but it improved Dropbox’s finances substantially. Without exaggeration, the shift away from cloud computing is one of the biggest reasons Dropbox is able to go public now.

    https://www.bloomberg.com/gadfly/articles/2018-03-01/dropbox-s-best-move-was-breaking-up-with-amazon-s-cloud

  • Nasty, new security threats are scaring .govs to the cloud

    “I believe that the leadership within the government is ready for this change,” Wood said. AWS’ Commercial Cloud Services, or C2S, and Secret Commercial Cloud Service, or SC2S, are the “secret” and “top secret” clouds, respectively, Wood explained. The intelligence community — including its military components — have been working together to assess the security features of these clouds. The group of 38 assessors clearly see the benefits and are gaining confidence that the data is protected and are now closer to reciprocity than ever before.

    A common vernacular for cybersecurity pros has hurt attempts to build expertise and strong security standards and systems in the past. The signing of the president’s executive order on cybersecurity is now mandating the adoption of the NIST Cybersecurity Framework.

    https://siliconangle.com/blog/2018/02/23/nasty-new-security-threats-scaring-govs-cloud-awspublicsector/

  • Apple may no longer be using Microsoft’s Azure

    The updated Apple security guide now lists Amazon’s S3 and the Google Cloud Platform as where some encrypted “chunks” of files are stored. Apple’s iCloud stores users’ contacts, calendars, photos and documents, among other types of information. iCloud also is used by some third-party apps to store and sync documents and key values for app data, Apple’s security guide notes.

    CRN reported in March 2016 that Google signed on Apple as a customer for the Google Cloud platform, citing “multiple sources with knowledge of the matter.” At that time, CRN also reported that Apple had “significantly reduced its reliance on Amazon Web Services,” though had not abandoned AWS entirely.

    http://www.zdnet.com/article/apple-may-no-longer-be-using-microsofts-azure/
    Interesting timing to reduce reliance on AWS as both companies race to be the first one trillion dollar company.

Security

  • Equifax finds another 2.4 million people affected by its data breach

    “This is not about newly discovered stolen data,” Paulino do Rego Barros, Jr., Equifax’s Interim CEO, said in a statement. “It’s about sifting through the previously identified stolen data, analyzing other information in our databases that was not taken by the attackers and making connections that enabled us to identify additional individuals.” Equifax said that because the attackers appeared to be focused on obtaining social security numbers, that’s what their investigation centered on during its initial phases. These additional 2.4 million individuals didn’t have their social security numbers stolen and were therefore not spotted earlier in the investigation.

    https://www.engadget.com/2018/03/01/equifax-2-4-million-more-people-affected-data-breach/

  • Apple to Start Putting Sensitive Encryption Keys in China

    The keys are complex strings of random characters that can unlock the photos, notes and messages that users store in iCloud. Until now, Apple has stored the codes only in the U.S. for all global users, the company said, in keeping with its emphasis on customer privacy and security.

    While Apple says it will ensure that the keys are protected in China, some privacy experts and former Apple security employees worry that moving the keys to China makes them more vulnerable to seizure by a government with a record of censorship and political suppression.

    “Once the keys are there, they can’t necessarily pull out and take those keys because the server could be seized by the Chinese government,” said Matthew Green, a professor of cryptography at Johns Hopkins University. Ultimately, he says, “It means that Apple can’t say no.”

    https://www.wsj.com/articles/apple-to-start-putting-sensitive-encryption-keys-in-china-1519497574

  • GitHub survives massive DDoS attack relatively unscathed

    GitHub, a web-based code distribution and version control service, survived a massive denial of service attack on Wednesday. According to a report at Wired, a staggering 1.35 terabits per second (Tbps) of traffic hit the site at once. Within 10 minutes the company called for help from a DDoS mitigation service similar to Google’s Project Shield, Akamai’s Prolexic, which took over to filter and weed out malicious traffic packets. The attack, says Wired, ended after eight minutes. This may have been the largest DDoS attack ever; Wired notes the attack on domain name server Dyn in late 2016 reached 1.2 Tbps of traffic.

    https://www.engadget.com/2018/03/01/github-survives-massive-ddos-attack-relatively-unscathed/

Software/SaaS

  • LittleThings blames its shutdown on Facebook algorithm change

    Then Facebook made another big change to its algorithm, one that was supposed to prioritize content from friends and family over news publishers. Speiser said this cut LittleThings’ influencer and organic traffic (which was its most valuable traffic) by 75 percent.

    “No previous algorithm update ever came close to this level of decimation,” he wrote. “The position it put us in was beyond dire. The businesses looking to acquire LittleThings got spooked and promptly exited the sale process, leaving us in jeopardy of our bank debt convenants and ultimately bringing an expedited end to our incredible story.”

    https://techcrunch.com/2018/02/28/littlethings-shutdown/?ncid=rss
    This is what happens when you base a business model completely on a platform you don’t own or control.

  • While Facebook spars with critics, Twitter goes for humility on social media

    Twitter’s smaller size relative to Facebook also may help it repair its image because it’s not as dominant as Facebook. The media and marketing community is also eager for platform allies to counter Facebook and Google’s enormity, and Twitter has given the impression it wants to get out ahead of the trolls, bots and other abuses of its service. But as with Facebook, Twitter is vulnerable for having let the abuse problem continue as long as it has, and the PR goodwill will only last so long. It also has a chance to get out ahead of its role being spotlighted in probes of Russia’s meddling in the run-up to the U.S. presidential election in 2016.

    To one publishing executive, Dorsey came off as “sincere, not defensive. But they have to actually do something. Talk is cheap. If they want to become a credible publishing entity, they need to take responsibility. And that means action.”

    https://digiday.com/media/facebook-spars-critics-twitter-goes-humility-social-media/

Other

  • Apple Is Going to Be the First Trillion-Dollar Company

    Apple’s board of directors had most recently authorized a $210 billion share-repurchase program that is expected to be completed by March 2019, according to Apple investor relations. That was before the very corporate friendly 2017 tax reform bill was passed. I would expect that bill will encourage even more share repurchases. We should not be surprised to see a 10 or even 20 percent share count reduction over the next five years.

    https://www.bloomberg.com/view/articles/2018-03-01/apple-is-going-to-be-the-first-trillion-dollar-company

  • IBM gives Services staff until 2019 to get agile

    IBM has spent years telling the world that its Notes suite is as fine a collaboration environment as there is to be found anywhere, if only you’d give it a chance and appreciate its charms. But among the changes required to demonstrate agility is cessation of email use in favour of devops darling Slack. Staff are also expected to start using WebEx.

    Come September 30, IBM wants its services staff to have hit level-three agility maturity, and to see “positive trending of agile metrics.” Come December 30, Big Blue wants “continuous improvement leading to client advocacy.”

    https://www.theregister.co.uk/2018/02/26/ibm_gives_services_staff_until_2019_to_get_agile/
    IBM report, “Who Says Elephants Can’t Dance?”

    “There’s been a feeling historically that the elephants can’t dance, the incumbents will find it hard to respond and that everyone will be Uber-ed or Airbnb-ed out of existence,” Mark Foster, senior vice president of IBM Global Business Services, told Reuters in an interview.

    “But what we are seeing is, actually, there is a limit as to how far that can go.”

    While some sectors had been hugely disrupted by new digital entrants and some intermediaries were pushed out, many of those changes were now being led by existing industry players, he said.

    https://www.aljazeera.com/news/2018/02/ibm-report-elephants-dance-180225153412288.html

  • How SoftBank, World’s Biggest Tech Investor, Throws Around Its Cash

    They describe a man who sometimes makes gut-instinct decisions in businesses he knows little about—such as the time he spent about 30 minutes deciding he wanted to invest $200 million in a startup that grows vegetables indoors. Other times, he compiles an elaborate analysis, inundating his directors with hundreds of pages of documents to help explain an investment target.

    To strike quickly, he sometimes commits to investments before getting approval from his fund’s investment committee, some of these people say. And he often spars with his executives and board members over his proposals until they are convinced or acquiesce.

    https://www.wsj.com/articles/how-does-the-worlds-biggest-tech-investor-make-its-bets-unpredictably-1519661008

Photo: Kevin Stoop

Posted on

Supplier Report: 1/5/2018

Here we go again… there is another security flaw that could impact almost all connected computers.  This time the issue is at the CPU kernel level and it could take some time to completely correct.

Amazon is one of the companies impacted by this flaw, but on the bright side, their bets on home speakers, video and music services, and grocery stores are paying off. The company also seems to be making progress on ridding themselves of Oracle software internally and in their service offerings.

And last but not least, Google is saving billions of dollars in another off-shore tax shelter plan.

Acquisitions

  • Microsoft acquires Avere Systems, file-storage vendor for Windows and Linux

    Microsoft announced intentions to buy the Pittsburgh, Penn.-based vendor on Jan. 3 for an undisclosed amount.

    Avere has developed file system and caching technologies designed to speed access to compute and storage in hybrid environments. Avere provides NFS and SMB file storage for Windows and Linux clients running in the cloud, hybrid, and on-premises environments.

    http://www.zdnet.com/article/microsoft-acquires-avere-systems-file-storage-vendor-for-windows-and-linux/

  • How FANG Stocks Left the Media Business Snakebitten: A 2017 Retrospective

    But media moguls aren’t taking all this lying down; to defang FANG, they’re fighting with fire. They are remaking their companies in the same mold as their tech rivals, first by striking the deals necessary to scale into a group of fewer but bigger businesses that can at least approach the size of a quartet boasting a combined market capitalization of $1.9 trillion. They are also pivoting toward their rivals’ style of data-driven streaming direct to the consumer. As Murdoch summed it up in the wake of the Disney deal, “Silicon Valley is spending tens and tens of billions on entertainment programming,” he told NPR. “So it makes sense to bulk up the entertainment side, so that we’ve got a company that can go direct to consumers in a big way.”

    Nothing defined the media sector more in 2017 than the mergers and acquisitions that have been the order of the day to appease an increasingly skeptical Wall Street. In addition to the Fox-Disney stunner, there was the $14.6 billion union of Discovery and Scripps completed in November. More such deals seem inevitable next year, such as the potential for Shari Redstone to engineer the reunion of CBS Corp. and Viacom. Maybe someone in Silicon Valley will finally buy one of the content companies as well.

    http://variety.com/2017/digital/news/fang-facebook-amazon-netflix-amazon-2017-1202645607/

  • Inside the Eccentric, Relentless Deal-Making of Masayoshi Son

    Chris Lane, an analyst with Sanford Bernstein, says about eight in 10 of the investors he talks with are skeptical of Son. They see him as a solid telecom operator who is taking enormous risks with his investments and has demonstrated no special skill in technology investment. Lane sees clear evidence of that disbelief: SoftBank’s stock in Alibaba and other assets are worth more than 19 trillion yen after subtracting all its debt, but SoftBank’s market cap is only 9.8 trillion yen. It’s like your neighbor having a suitcase stuffed with $1 million in cash, but you’ll only pay him $500,000 for it because you think he’ll lose the rest on the way to your house. Critics not only don’t believe Son can pick the next Alibaba; they’re convinced he’s going to squander what he already has.

    “If you think of this as a telco making unrelated investments and likely to lose money, then maybe the discount is right,” Lane says. “If you think this is a sophisticated technology investment firm with a strong track record, then this is an unbelievable opportunity.”

    https://www.bloomberg.com/news/features/2018-01-02/inside-the-eccentric-unstoppable-deal-making-of-masayoshi-son

Artificial Intelligence

  • China emerges as a hotbed for artificial intelligence (thanks JD!)

    The rapid growth of AI in China can also be partly attributed to government support. Beijing laid out a development plan in July to become a world leader in AI, aiming to build a domestic AI industry worth at least 1 trillion yuan (around $1.5 billion), according to a government document. Chirag Dekate, research director of high-performance computing for Gartner, thinks China is getting into AI for the long haul. “The U.S. is driving AI innovation across the spectrum, in software and hardware,” said Dekate in an interview with Investor’s Business Daily. “Early use cases and early adopters are happening more in the U.S. than any geography in the world. But China is looking at it from a marathon perspective.”

    https://digiday.com/marketing/china-emerges-hotbed-artificial-intelligence/

Cloud

  • The CPU catastrophe will hit hardest in the cloud

    But privilege escalation is much scarier in the cloud, where the same server could be working for dozens of people at once. Platforms like Amazon Web Services and Google Cloud let online companies spread a single program across thousands of servers in data centers across the world, sharing hardware the same way you’d share an airplane or a subway car. Collective hardware isn’t a security problem because even when different users are on the same server, they’re in different software instances, with no way to jump from one instance to another. Spectre could change that, letting attackers steal data from anyone sharing the same chip. If a hacker wanted to perform that kind of attack, all they’d have to do is start their own instance and run the program.

    Cloud services are also a lucrative target for anyone hoping to cash in on Spectre. Lots of midsize businesses run their entire infrastructure on AWS or Google Cloud, often trusting the platform with sensitive and potentially lucrative information. Bitcoin exchanges, chat apps, even government agencies all keep passwords and other sensitive data on cloud servers. If you’re running a modern web service, there’s simply no other choice. If someone did set a new exploit running on a cloud instance, there’s no telling what kind of data might shake out.

    https://www.theverge.com/2018/1/4/16850120/meltdown-spectre-vulnerability-cloud-aws-google-cpu

Software/SaaS

  • Facebook has a 100-person engineering team that helps advertisers build tools and infrastructure

    You’d expect any digital media business to offer some degree of technical support to its biggest advertisers, but the solutions engineering team is actually building products.

    For example, it was involved in creating Facebook’s dynamic ads format (where ads show different products to different users based on their activities and interests). Mehta said dynamic ads were first inspired by the complaints of an advertiser he was meeting with in Hamburg, Germany, and he then worked with the Facebook Ads team to create a prototype, eventually leading to a more polished product and broader availability.

    It’s probably safe to say that not every client meeting leads to a new ad format — sometimes Mehta’s team is just helping advertisers understand how to use their existing tools in a more effective way. But that other option, working with the rest of Facebook to build something new, is also on the table.

    https://techcrunch.com/2017/12/29/facebook-solutions-engineering/?ncid=rss

  • Amazon and Salesforce are reportedly making ‘significant progress’ moving away from Oracle technology

    Salesforce is developing its own alternative to Oracle’s database, while Amazon is moving toward open-source technology called NoSQL, sources told The Information. If Amazon and Salesforce could move away from Oracle, it could be proof that other big businesses could, too, one consultant told The Information.

    Oracle’s database technology, as well as the coding language Java, have been the market standard in many industries since at least the 1990s, as one of the first databases to support “http” technologies online.

    https://www.cnbc.com/2018/01/02/amazon-salesforce-moving-away-from-oracle-technology-report.html

Security

  • Kernel panic! What are Meltdown and Spectre, the bugs affecting nearly every computer and device?

    In modern architectures, there are inviolable spaces where data passes through in raw, unencrypted form, such as inside the kernel, the most central software unit in the architecture, or in system memory carefully set aside from other applications. This data has powerful protections to prevent it from being interfered with or even observed by other processes and applications.

    Meltdown and Spectre are two techniques researchers have discovered that circumvent those protections, exposing nearly any data the computer processes, such as passwords, proprietary information, or encrypted communications.

    Meltdown affects Intel processors, and works by breaking through the barrier that prevents applications from accessing arbitrary locations in kernel memory. Segregating and protecting memory spaces prevents applications from accidentally interfering with one another’s data, or malicious software from being able to see and modify it at will. Meltdown makes this fundamental process fundamentally unreliable.

    Spectre affects Intel, AMD, and ARM processors, broadening its reach to include mobile phones, embedded devices, and pretty much anything with a chip in it. Which, of course, is everything from thermostats to baby monitors now.

    https://techcrunch.com/2018/01/03/kernel-panic-what-are-meltdown-and-spectre-the-bugs-affecting-nearly-every-computer-and-device/
    Cloud infrastructure vendors begin responding to chip kernel vulnerability

    “We’re aware of this industry-wide issue and have been working closely with chip manufacturers to develop and test mitigations to protect our customers. We are in the process of deploying mitigations to cloud services and are releasing security updates today to protect Windows customers against vulnerabilities affecting supported hardware chips from AMD, ARM and Intel. We have not received any information to indicate that these vulnerabilities had been used to attack our customers.”

    https://techcrunch.com/2018/01/03/cloud-infrastructure-vendors-begin-responding-to-chip-kernel-vulnerability/?ncid=rss

  • Intel was aware of the chip vulnerability when its CEO sold off $24 million in company stock

    But while the public is just being informed about the security problem, tech companies have known about it for months. In fact, Google informed Intel of the vulnerability in June, an Intel representative told Business Insider in a statement.

    That means Intel was aware of the problem before Krzanich sold off a big chunk of his holdings. Intel’s CEO saw a $24 million windfall November 29 through a combination of selling shares he owned outright and exercising stock options.

    The stock sale raised eyebrows when it was disclosed, primarily because it left Krzanich with just 250,000 shares of Intel stock — the bare minimum the company requires him to hold under his employment agreement.

    http://www.businessinsider.com/intel-ceo-krzanich-sold-shares-after-company-was-informed-of-chip-flaw-2018-1

Other

  • Amazon did a lot of funky stuff this year and it’s paying off

    The bet paid off, with AWS now on track to generate more than $10 billion annually. More importantly, that $10 billion annually comes with a pretty healthy margin — though, over time, that margin may slip down. For the time being, though, it’s an impressive business compared to the razor-thin profits that Amazon might generate from its retail operations and a good data point as its media services like video or music start to play out.

    And, as usual, recurring revenue is a story that Wall Street loves. Amazon is a company that people will often tell you not to bet against, and its stock is up more than 50 percent on the year thanks to an array of businesses that all appear to be showing growth and the company’s recent-ish ability to turn a profit. Amazon can thank AWS a lot for that.

    https://techcrunch.com/2017/12/29/amazon-did-a-lot-of-funky-stuff-this-year-and-its-paying-off/?ncid=rss

  • Peter Thiel’s Founders Fund Makes Monster Bet on Bitcoin

    Relatively few mainstream investors have bought large sums of bitcoin, scared off by concerns about cybersecurity and liquidity, as well as more mundane fears of investment losses. Even some of those who do own it are cautious about speaking too publicly, lest they draw the attention of hackers.

    The recent price plunge has also spooked some. On Dec. 22, the prominent investor Michael Novogratz said he was delaying launching a crypto-focused hedge fund for outside investors, stating “we didn’t like market conditions for new investors.” South Korea announced last week it would crack down on cryptocurrency trading, an ominous sign given that the country at one point accounted for as much as one-fourth of global bitcoin trading activity.

    https://www.wsj.com/articles/peter-thiels-founders-fund-makes-big-bet-on-bitcoin-1514917433

  • Google used a popular tax trick to shelter $19.2 billion

    Newly published Netherlands regulatory filings show that Google shielded €15.9 billion (about $19.2 billion) in 2016 using the popular “Dutch Sandwich” tax trick, saving it about $3.7 billion in taxes. The maneuver involves shifting revenue from an Irish subsidiary to a Dutch firm with no staff, and promptly moving the funds to a Bermuda mailbox owned by another Ireland-listed company. And this practice isn’t slowing down — Google moved 7 percent more cash through this approach in 2016 than it did a year earlier.

    https://www.engadget.com/2018/01/02/google-dutch-sandwich-tax-maneuver/

 

Posted on

Supplier Report: 12/29/2017

Amazon is still hustling late into the year. They announced the acquisition of wireless camera company Blink. There is also more information about Amazon’s plans to get into online advertising… Google and Facebook should be concerned.

Uber gets another life-line as SoftBank purchases a 30% stake in the company.

Microsoft is making a push to replace traditional passwords with bio-metric solutions like iris scanning. It does sound less complicated, but there is something about having a IR laser blasting my eyeball that fills me with unease.

Acquisitions

  • Amazon buys Blink wire-free connected camera startup

    Amazon has acquired Blink, the wireless security camera company that launched back in 2014 and then subsequently closed a million-dollar Kickstarter campaign. The deal was announced today, and for the moment will see Blink continue to operate as-is, with no changes to the company’s line-up. That includes the recently announced Blink Video Doorbell.

    https://www.slashgear.com/amazon-buys-blink-wire-free-connected-camera-startup-22512665/

  • SoftBank Succeeds in Tender Offer for Large Stake in Uber

    SoftBank Group Corp. won its bid to buy a major stake in Uber Technologies Inc. at a steep discount to the company’s previous valuation in a deal that gives the world’s biggest tech investor sway over the most valuable U.S. startup.

    Uber investors and employees tendered shares equal to about 20% of the company in an offer by a SoftBank-led consortium that values Uber at $48 billion—a roughly 30% discount to its most recent valuation of about $68 billion, people familiar with the matter said.

    The group will end up acquiring slightly less: SoftBank itself will own about 15% of Uber, and other members of SoftBank’s bidding group will get a stake of around 3%, one of the people said.​ ​

    https://www.wsj.com/articles/softbank-succeeds-in-tender-offer-for-large-stake-in-uber-1514483283

Artificial Intelligence

  • What Amazon’s Alexa economy pays the people building its skills

    Wilson unexpectedly joined a new Alexa economy, a small but fast-growing network of independent developers, marketing companies and Alexa tools makers. They’re working to bring you voice-activated flash briefings, games and recipes through Amazon’s Echo speaker, Alexa’s primary home. By doing so, they hope to define the 3-year-old Alexa platform and make money from voice computing’s surging popularity.

    Two years ago, there wasn’t nearly as much to do on Alexa and the market for making Alexa skills was worth a mere $500,000. Now, with more than 25,000 skills available, the market is expected to hit $50 million in 2018, according to analytics firm VoiceLabs. That’s dwarfed by the mobile app economy, with global sales of over $50 billion, but Alexa is growing at a far faster rate.

    https://www.cnet.com/news/amazon-alexa-economy-echo-speaker-google-assistant-siri/

Cloud

  • Amazon is planning a push into digital advertising in 2018, challenging Google and Facebook

    Digital advertising was a $209 billion business globally in 2017, according to media buying research firm Magna Global. And it’s only increasing: The company predicts the industry will grow 13 percent to $237 billion next year. The U.S. is currently the most lucrative market, where advertisers spent $40.1 billion on digital advertising during the first half of 2017 alone, according to digital ad industry group Interactive Advertising Bureau.

    Although Amazon doesn’t break out revenues from its advertising business, eMarketer estimates Amazon was the fifth-largest digital advertiser in the U.S. in terms of revenue this year. Still, it makes up a little more than 2 percent of the market. It’s leagues below industry leaders Google and Facebook, which take home more than 70 percent combined, according to a recent estimate from analysts at Pivotal.

    But advertisers have been searching for a third large competitor in order to lower prices and force Google and Facebook to be more open about sharing user data. Amazon could be a major player, if only based on the sheer volume of consumer insights it has thanks to its robust e-commerce business.

    https://www.cnbc.com/2017/12/26/amazon-digital-advertising-push-in-2018.html

Software/SaaS

  • Oracle: A Classic Case Of Cannibalization

    If cloud computing is classified as a disruptor, Oracle (ORCL) is definitely the flag bearer for the incumbents that are being disrupted. One of the pioneers of the information technology industry, Oracle had conceded its dominance to the likes of Amazon (AMZN) and Microsoft (MSFT) in the cloud computing space.

    Although Oracle’s total cloud revenues were up 60% in 2017 and have more than doubled in the last two years, they are at best substituting for the decline in its traditional revenue streams – software, hardware, and services. Revenues of new software licenses were down 32%, hardware revenues were down 34%, and service revenues were down 21% in the last five years. Hence, the total cumulative growth in revenues over the last five years is merely 1.64%. In fact, sales in 2017 were marginally lower than that in 2015 and 2014. Despite the scrimpy growth rates, the stock is up over 90% since May 2012. Shareholders are rewarded generously by increase in dividends and share repurchase programs over that period as well.

    https://seekingalpha.com/article/4134078-oracle-classic-case-cannibalization

  • Goldman is reportedly getting into bitcoin and crypto trading

    The bank is said to be in the early stages of setup, which means hiring and figuring out the logistics, including how the bank will hold the assets and keep them secure. The ultimate goal, Bloomberg claimed, is to begin trading by June 2018.

    “In response to client interest in digital currencies, we are exploring how best to serve them,” the bank told Bloomberg in a statement.

    The move would make it the first major bank to embrace trading bitcoin and cryptocoins, which have surged in value in 2017, with bitcoin itself getting close to the $20,000 mark before falling this week. It’s current price is $14,633, according to Coindesk, a huge jump on $998 on January 1 2017.

    https://techcrunch.com/2017/12/21/goldman-bitcoin-crypto-trading/?ncid=rss

  • Blockchain Pumping New Life Into Old-School Companies Like IBM

    That’s creating new opportunities for some of the old warships of the technology world, companies like IBM and Microsoft Corp. that are making the transition to cloud services. And products that had gone out of vogue, such as databases sold by Oracle Corp., are becoming sexy again.

    “All of these things will get a new life because of blockchain,” said Jerry Cuomo, vice president of technology for IBM Blockchain. “Our sales team loves blockchain because a customer that is buying blockchain rarely walks out of the store with just blockchain. They walk out with multiple things in their cart.”

    https://www.bloomberg.com/news/articles/2017-12-26/blockchain-pumping-new-life-into-old-school-companies-like-ibm
    I am sharing this article because it is a great example of media bias. “All of these things will be new life” because nobody is buying IBM software and Oracle DBs.

Security

  • Microsoft says it’s time to kill the traditional passwords system

    Windows Hello allows users to log in with their iris, thus the new system is slightly better than the passwords. In a blog post, Bret Arsenault, corporate vice president for Microsoft and chief information security officer highlighted the reason why it’s time to kill the traditional passwords system.

    According to Microsoft, Windows Hello is more convenient and easier to use. The software giant also claims that at least 70 percent of the Windows 10 users with biometric-enabled devices prefer Windows Hello over the password authentication system.

    “We are encouraging users to try it, and see for themselves that it is easier to use than passwords. I think one of the fears that people have is that new technology is just going to be more complicated, and not realize that we’ve pushed to make it simpler and better,” says Rob Lefferts, director of program management for Windows Enterprise and Security at Microsoft.

    https://www.windowslatest.com/2017/12/28/microsoft-says-time-kill-passwords-sucks/

Photo: Tristan Gassert