Category: Supplier Report

Posted on

Supplier Report: 9/27/2019


Photo by Vidar Nordli-Mathisen on Unsplash

The darlings of the tech world are facing the harsh embrace of reality. Both Uber and WeWork have been under fire for their valuations and other operational issues. Now leaders from other companies are commenting on their future viability.

Meanwhile many firms are clinging to the hope of artificial intelligence to improve their margins, increase their sales, and usher in a new market for customers to get excited about.

Acquisitions/Investments

  • McDonald’s Is Acquiring AI Startup Apprente

    McDonald’s is acquiring Apprente, a startup which uses artificial intelligence (AI) to understand speech in multiple languages. The technology will be used in the company’s drive-thrus and could also be used in its self-order kiosks and a mobile app. This is McDonald’s third tech deal this year.

    There is a new self-checkout shopping cart that makes grocery shopping easier. When you are shopping with a Caper cart, all you have to do is scan the item barcode and simply add it to your cart. Once you are done shopping you pay directly on the cart. Caper recently closed a $10 million Series A led by Lux Capital.

    https://www.entrepreneur.com/video/339394

  • T-Mobile’s Sprint merger is opposed by 18 state attorneys general

    In July, the Department of Justice approved T-Mobile’s $26.5 billion bid to merge with Sprint — on the condition that it sell some of its business to Dish Network. And Federal Communications Commission Chairman Ajit Pai endorsed the deal. But opposition from so many attorneys general could pose a legitimate threat.

    The state attorneys general fear the merger would hurt competition, raise prices for cell service, result in a loss of retail jobs and lower wages for the employees who remain. “The merger between T-Mobile and Sprint would severely undermine competition in the telecommunications sector, which would hurt Pennsylvanian consumers by driving up prices, limiting coverage, and diminishing quality,” Shapiro said in a statement.

    https://www.engadget.com/2019/09/18/t-mobile-sprint-pennsylvania/

Artificial Intelligence

  • Google’s quantum bet on the future of AI—and what it means for humanity

    The full reach of Google’s AI influence stretches far beyond the company’s offerings. Outside developers—at startups and big corporations alike—now use Google’s AI tools to do everything from training smart satellites to monitoring changes to the earth’s surface to rooting out abusive language on Twitter (well, it’s trying). There are now millions of devices using Google AI, and this is just the beginning. Google is on the verge of achieving what’s known as quantum supremacy. This new breed of computer will be able to crack complex equations a million or more times faster than regular ones. We are about to enter the rocket age of computing.

    https://www.fastcompany.com/90396213/google-quantum-supremacy-future-ai-humanity

  • Artificial Intelligence Confronts a ‘Reproducibility’ Crisis

    Pineau is trying to change the standards. She’s the reproducibility chair for NeurIPS, a premier artificial intelligence conference. Under her watch, the conference now asks researchers to submit a “reproducibility checklist” including items often omitted from papers, like the number of models trained before the “best” one was selected, the computing power used, and links to code and datasets. That’s a change for a field where prestige rests on leaderboards—rankings that determine whose system is the “state of the art” for a particular task—and offers great incentive to gloss over the tribulations that led to those spectacular results.

    The idea, Pineau says, is to encourage researchers to offer a road map for others to replicate their work. It’s one thing to marvel at the eloquence of a new text generator or the “superhuman” agility of a videogame-playing bot. But even the most sophisticated researchers have little sense of how they work.

    https://www.wired.com/story/artificial-intelligence-confronts-reproducibility-crisis/

Cloud

  • IBM sees Amazon and Microsoft as cloud allies, not rivals

    CEO Ginni Rometty is betting on the hybrid cloud, which lets IBM offer services on corporate customers’ cloud-based servers as well as on third-party clouds operated by the likes of Amazon and Microsoft. IBM has traditionally viewed these cloud giants as direct competitors, but it now aims to partner with them by supporting clients as they shift sensitive databases on to the cloud, regardless of which provider they use.

    After struggling to keep up in the cloud market for more than a decade, IBM has switched to a hybrid cloud strategy, cementing its future with last year’s US$34-billion acquisition of Red Hat, the Raleigh, North Carolina-based open-source software provider.

    https://techcentral.co.za/ibm-sees-amazon-and-microsoft-as-cloud-allies-not-rivals/92641/

  • Larry Ellison says Oracle will ‘write into your contract that your bill will be half’ of what you’d pay Amazon, as the database giant announces new cloud products

    Larry Ellison announced a new so-called autonomous operating system in a new initiative to challenge to Amazon Web Services, the leader in cloud computing — and took a jab at Amazon over its small role in the massive Capital One hack.

    A highlight of Ellison’s speech was the unveiling of what it touted as the world’s first autonomous operating system, that will automatically be maintained and updated and will not require manual management. This operating system is based on Linux, the free and open source operating system that’s ubiqitious in server rooms and data centers around the world.

    https://www.businessinsider.com/larry-ellison-oracle-autonomous-os-free-cloud-access-2019-9

Security/Privacy

  • The FBI Tried to Plant a Backdoor in an Encrypted Phone Network

    The FBI tried to force the owner of an encrypted phone company to put a backdoor in his devices, Motherboard has learned. The company involved is Phantom Secure, a firm that sold privacy-focused BlackBerry phones and which ended up catering heavily to the criminal market, including members of the Sinaloa drug cartel, formerly run by Joaquín “El Chapo” Guzmán.

    https://www.vice.com/en_us/article/pa73dz/fbi-tried-to-plant-backdoor-in-encrypted-phone-phantom-secure

  • Thinkful confirms data breach days after Chegg’s $80M acquisition

    Thinkful, based in Brooklyn, New York, provides education and training for developers and programmers. The company claims the vast majority of its graduates get jobs in their field of study within a half-year of finishing their program. Earlier this month, education tech giant Chegg bought Thinkful for $80 million in cash.

    But the company would not say when the breach happened — or if Chegg knew of the data breach prior to the acquisition announcement.

    https://techcrunch.com/2019/09/19/thinkful-data-breach-chegg-acquisition/

Infrastructure/Hardware

  • Google is investing $3.3B to build clean data centers in Europe

    This new investment is in addition to the $7 billion the company has invested since 2007 in the EU, but today’s announcement was focused on Google’s commitment to building data centers running on clean energy, as much as the data centers themselves.

    Of the 3 billion Euros, the company plans to spend, it will invest 600 million to expand its presence in Hamina, Finland, which he wrote “serves as a model of sustainability and energy efficiency for all of our data centers.” Further, the company already announced 18 new renewable energy deals earlier this week, which encompass a total of 1,600-megawatts in the US, South America and Europe.

    https://techcrunch.com/2019/09/20/google-is-investing-3-3b-to-build-clean-data-centers-in-europe/

  • IBM will soon launch a 53-qubit quantum computer

    IBM notes that the new 53-qubit system introduces a number of new techniques that enable the company to launch larger, more reliable systems for cloud deployments. It features more compact custom electronics for improving scaling and lower error rates, as well as a new processor design.

    The fact that IBM is now opening this Quantum Computation itself, of course, is a pretty good indication about how serious the company is about its quantum efforts. The company’s quantum program also now supports 80 partnerships with commercial clients, academic institutions and research laboratories. Some of these have started to use the available machines to work on real-world problems, though the current state of the art in quantum computing is still not quite ready for solving anything but toy problems and testing basic algorithms.

    https://techcrunch.com/2019/09/18/ibm-will-soon-launch-a-53-qubit-quantum-computer/

Other

  • Uber Vows to Fight California Legislation on Gig Economy

    The legislation, which intends to force companies to reclassify certain contract workers as employees, is considered a serious threat to Uber and Lyft, already losing billions of dollars a year combined, as their business models have relied on flexible labor and minimal worker costs.

    The bill’s passage in the state Assembly on Wednesday, after the state Senate’s passage the night before, reflects the degree to which the large Democratic majority in Sacramento has increased scrutiny of tech companies in recent years, as well as the strength of labor unions in the state.

    Given California’s size and history of creating influential business regulations, it also is the first significant step in a new paradigm for a changing workforce, fueled by people who have forgone benefits for the sake of flexibility and occasional incentives.

    https://www.wsj.com/articles/california-governor-still-in-talks-with-uber-lyft-over-gig-workers-law-11568212014
    Oracle Founder Larry Ellison Calls Uber and WeWork ‘Almost Worthless’

    Ellison argued that while Uber raises capital to spend on gaining market share from rival Lyft (LYFT), the business they secure doesn’t necessarily stay with the company. He pointed out that Uber doesn’t own its cars and doesn’t control their drivers. And he declared that “they have an app my cat could have written.”

    Ellison said losing money to gain market share is “idiotic” if customers won’t stay with the firm. “They have nothing,” he said. “No technology. And no loyalty.”

    He mocked WeWork’s assertion that it is a technology company. “WeWork rents a building from me, and breaks it up, and then rents it,” Ellison said. “They say, ‘We’re a technology company, and we want a tech multiple.’ It’s bizarre.”

    https://www.barrons.com/articles/oracles-larry-ellison-calls-uber-and-wework-almost-worthless-51568924122

  • Avaya Goes Global With IBM Cloud

    As part of the IBM deal, Avaya gains access to Watson, to help its contact center customers improve routing and automation for dealing with customer calls, McGugan says. Additionally, IBM provides important automation tools and professional services for the cloud migration.

    In addition to IBM, Avaya has partnerships with other cloud providers, with compute resources in Google Cloud, Microsoft Azure and Amazon Web Services. “My customers sometimes dictate where they want their solutions housed,” McGugan said. Some workloads span multiple clouds.

    https://www.lightreading.com/services/unified-communication/avaya-goes-global-with-ibm-cloud/d/d-id/754203

  • Amazon Will Double Chicago Headcount, Add 70K SF at Tech Hub

    Amazon plans to expand its Chicago Tech Hub and create 400 new tech jobs in fields including cloud computing, advertising, and business development. To accommodate this job creation, Amazon will expand its space at Tishman Speyer’s Franklin office tower by more than 70,000 square feet.

    In all, Amazon employs more than 11,000 across Illinois, including workers at its fulfillment centers and retail stores.

    https://www.connect.media/amazon-will-double-chicago-headcount-add-70k-sf-at-tech-hub/

Posted on

Supplier Report: 9/20/2019


Photo by Josh Appel on Unsplash

News about massive acquisitions, mergers, and government fines can make it easy to lose track of the true value of a dollar.

WeWork and Uber continue to struggle justifying their value and become cash-flow positive. Google, through all of their own self-inflicted wounds are being treated like a piggy bank for foreign and the US governments.

Meanwhile critics of IT companies keep touting the value of data over the value of hard cash. Interesting times indeed.

Acquisitions/Investments

None this week

Artificial Intelligence

  • How to Build Artificial Intelligence We Can Trust

    For certain A.I. tasks, the dominant data-correlation approach works fine. You can easily train a deep-learning machine to, say, identify pictures of Siamese cats and pictures of Derek Jeter, and to discriminate between the two. This is why such programs are good for automatic photo tagging. But they don’t have the conceptual depth to realize, for instance, that there are lots of different Siamese cats but only one Derek Jeter and that therefore a picture that shows two Siamese cats is unremarkable, whereas a picture that shows two Derek Jeters has been doctored.

    In no small part, this failure of comprehension is why general-purpose robots like the housekeeper Rosie in “The Jetsons” remain a fantasy. If Rosie can’t understand the basics of how the world works, we can’t trust her in our home.

    https://www.nytimes.com/2019/09/06/opinion/ai-explainability.html

Cloud

  • Attorneys General Launch Probe of Google

    Texas Attorney General Ken Paxton, a Republican, announced the probe in front of the U.S. Supreme Court building, joined by about a dozen other attorneys general. In all, 48 states are part of the investigation of the Alphabet Inc. unit, plus Puerto Rico and the District of Columbia, officials said.

    Mr. Paxton said the states for now would focus on Google’s practices in online advertising markets. “But the facts will lead where the facts lead,” he said, adding, “We don’t know all the answers.”

    The states sent Google a civil subpoena on Monday seeking information about its ad practices, officials said.

    https://www.wsj.com/articles/attorneys-general-launch-probe-of-google-11568055853

  • Google, Amazon and Microsoft in Battle to Store Health Data in the Cloud

    Google will announce Tuesday a 10-year deal with the Mayo Clinic to store the hospital system’s medical, genetic and financial data. Providence St. Joseph Health in July said it reached a data-storage agreement with Microsoft. Later that month, Cerner Corp. CERN -0.24% , one of the largest electronic-health-record companies, unveiled its cloud-storage agreement with Amazon’s cloud-computing unit, Amazon Web Services.

    Some hospital-system and company officials said they expect to jointly develop new software by combining data and expertise of health-care companies with tech giants’ computing power and engineering know-how. “Google can’t do this alone. We can’t do this alone,” said Cris Ross, Mayo’s chief information officer. The terms weren’t disclosed.

    Patient records will be kept private and access will be controlled by Mayo, Mr. Ross said. Data used to develop new software will be stripped of any information that could identify individual patients before it is shared with the tech giant.

    https://www.wsj.com/articles/google-amazon-and-microsoft-in-battle-to-store-health-data-in-the-cloud-11568122202

Security/Privacy

  • Big Tech’s Hands-Off Era Is Over

    Over the years, these growing companies have successfully skirted legal recourse for bad actors on their sites. They have had the law on their side: Section 230 of the Communications Decency Act of 1996 shields internet platforms from liability for what others post.

    Now, as global behemoths, it seems that with greater power comes greater legal responsibility. The U.S. Court of Appeals for the Third Circuit earlier this year held that a customer in Pennsylvania could sue Amazon over a product that was allegedly unsafe. Meanwhile, Facebook was recently fined $5 billion over privacy violations—the largest privacy-related fine in the history of the Federal Trade Commission. Google was also just hit with a $170 million FTC fine over its YouTube operation, for which the company made changes such as disabling comments on children’s videos.

    https://www.wsj.com/articles/big-techs-hands-off-era-is-over-11567762389

  • 51 tech CEOs send open letter to Congress asking for a federal data privacy law

    Many privacy advocates (and even some tech CEOs) believe tech companies aren’t really looking after users’ interests, but their own. There’s a belief that companies are trying to aggregate any privacy lawmaking under one roof, where lobby groups can water-down any meaningful user protections that may impact bottom lines.

    Many companies make money by selling customers’ personal or device-usage data to online advertisers. A privacy framework with too many teeth could prevent companies from selling certain types of data.

    To help speed up the legislative process, the Business Roundtable group released their own consumer privacy framework [more here] that they’d like Congress to analyze and use as a base for any future law. This proposal includes many of the same provisions of the EU’s General Data Protection Regulation (GDPR); however, in very broad terms.

    https://www.zdnet.com/article/51-tech-ceos-send-open-letter-to-congress-asking-for-a-federal-data-privacy-law/

  • 1B Mobile Users Vulnerable to Ongoing ‘SimJacker’ Surveillance Attack

    Researchers on Thursday disclosed what they said is a widespread, ongoing exploit of a SIM card-based vulnerability, dubbed “SimJacker.” The glitch has been exploited for the past two years by “a specific private company that works with governments to monitor individuals,” and impacts several mobile operators – with the potential to impact over a billion mobile phone users globally, according to by researchers with AdaptiveMobile Security.

    “Simjacker has been further exploited to perform many other types of attacks against individuals and mobile operators such as fraud, scam calls, information leakage, denial of service and espionage,” said researchers with AdaptiveMobile Security in a post breaking down the attack, released Thursday.

    https://threatpost.com/1b-mobile-users-vulnerable-to-ongoing-simjacker-surveillance-attack/148277/

Infrastructure/Hardware

  • The mainframe business is alive and well, as IBM announces new z15

    IBM announced last month that it was making OpenShift, Red Hat’s Kubernetes-based cloud-native tools, available on the mainframe running Linux. This should enable developers, who have been working on OpenShift on other systems, to move seamlessly to the mainframe without special training.

    IBM sees the mainframe as a bridge for hybrid computing environments, offering a highly secure place for data that when combined with Red Hat’s tools, can enable companies to have a single control plane for applications and data wherever it lives.

    https://techcrunch.com/2019/09/12/the-mainframe-business-is-alive-and-well-as-ibm-announces-new-z15/

Other

  • California Bill Makes App-Based Companies Treat Workers as Employees

    The bill passed in a 29-to-11 vote in the State Senate and will apply to app-based companies, despite their efforts to negotiate an exemption. On Wednesday morning, the Assembly gave its final approval, 56 to 15. California’s governor, Gavin Newsom, endorsed the bill this month and is expected to sign it. Under the measure, which would go into effect Jan. 1, workers must be designated as employees instead of contractors if a company exerts control over how they perform their tasks or if their work is part of a company’s regular business.

    The bill may influence other states. A coalition of labor groups is pushing similar legislation in New York, and bills in Washington State and Oregon that were similar to California’s but failed to advance could see renewed momentum. New York City passed a minimum wage for ride-hailing drivers last year but did not try to classify them as employees.

    https://www.nytimes.com/2019/09/11/technology/california-gig-economy-bill.html

  • Mark Hurd, the co-CEO of Oracle, is taking a leave of absence, citing health reasons

    With Hurd’s departure for now, Catz will become the sole CEO of Oracle. Ellison, who remains the company’s CTO, is also expected to take on some of Hurd’s responsibilities, says CNBC.

    https://techcrunch.com/2019/09/11/mark-hurd-the-co-ceo-of-oracle-is-taking-a-leave-of-absence-citing-health-reasons/

    Safra Catz has long been Oracle’s secret weapon, and analysts say that it’s her time to shine as sole CEO: ‘This will test her, but she will prevail’

    Ray Wang of Constellation Research described Catz as “an extraordinary operator” who has not drawn as much attention as Oracle’s other high-profile — and sometimes controversial — top execs.

    “Many folks underestimate her because she doesn’t want to take the limelight, but she has a silent power,” he told Business Insider. “I think she’s not sought the limelight but internal folks will always tell you she’s the one running the company in the background. Her biggest weakness is a strength in today’s climate. She’s not seeking the limelight. She’s focused on getting the job done.”

    https://www.businessinsider.com/safra-catz-profile-oracle-sole-ceo-2019-9

  • Jack Ma officially retires as Alibaba’s chairman

    Ma will continue serving on Alibaba’s board until its annual general shareholders’ meeting next year. He also remains a lifetime partner of Alibaba Partnership, a group drawn from the senior management ranks of Alibaba Group companies and affiliates that has the right to nominate (and in some situations, appoint) up to simple majority of its board.

    Ma said in last year’s announcement that he plans for his departure from Alibaba Group to be very gradual: “The one thing I can promise everyone is this: Alibaba was never about Jack Ma, but Jack Ma will forever belong to Alibaba.”

    https://techcrunch.com/2019/09/09/jack-ma-officially-retires-as-alibabas-chairman/

  • Google to pay $549 million fine and $510 million in back taxes in France

    This is a settlement, which means that French authorities are dropping charges against Google in France. It covers activities from 2005 to 2018.

    According to previous reports, the company owed around $1.3 billion in taxes. In 2014, Google started putting aside some money for a potential fine.

    https://techcrunch.com/2019/09/12/google-to-pay-549-million-fine-and-510-million-in-back-taxes-in-france/

  • WeWork and Uber are proof valuations are meaningless

    Up top, we dug into WeWork and the latest from the company’s continuing IPO saga. The question regarding the co-working company’s public offering has changed to whether the IPO will happen this year, not just at what price the firm can entice enough investment to actually get public.

    Alex has written about the company’s cash appetite a few times now, which raise the question of how long the company can survive without some sort of large, external investment. If SoftBank is willing to commit more capital is an open question

    https://techcrunch.com/2019/09/13/wework-and-uber-are-proof-valuations-are-meaningless/
    WeWork’s Latest Threat: Old-School Landlords Trying to Copy WeWork

    WeWork started off as a great customer of Hines Interests LP and other landlords, leasing unused space and renting it to businesses too tiny to be ordinary tenants, Hines executive Charlie Kuntz said in a presentation after dessert, according to several people present.

    But WeWork didn’t stop there. It began cutting deals with large corporations too, making it a threat to Hines’s core business. WeWork’s move reminded some at the dinner of how Airbnb Inc. stole business from hotels and how taxicab companies saw Uber Inc. eat their lunch.

    “It’s not too late for us,” Gerald Hines, the 94-year-old family patriarch and CEO’s father, told the group.

    This June, the big landlord punched back. It launched its own co-working business, called Hines Squared, as a direct competitor to WeWork.

    https://www.wsj.com/articles/weworks-latest-threat-old-school-landlords-trying-to-copy-wework-11568127640

Posted on

Supplier Report: 8/16/2019


Photo by Kong Jun on Unsplash

As the summer comes to a close, we are starting to see M&A activity ramp up. Several companies announced acquisitions over the last two weeks showing that there is money to burn for the right investments.

Meanwhile, Equifax seems to be burning money on settlements, but do they have enough cash to give every American $125? They do not. And critics are not happy.

Finally… Are Uber and Lyft ruing metropolitan traffic patterns? Maybe.

Acquisitions/Investments

  • Broadcom Makes $10.7 Billion Deal to Buy Symantec’s Corporate-Focused Security Business

    The part of Symantec, best known for its antivirus software, that Broadcom is buying focuses on sales to companies. That part contributes about half of Symantec’s $5 billion in annual revenue. The consumer segment accounts for the rest of the 37-year-old company’s revenue.

    Broadcom Chief Executive Hock Tan has been focused on diversifying beyond the company’s core chip business and pushing into the lucrative software arena. Last year, he struck a roughly $19 billion deal to buy software firm CA Technologies, formerly Computer Associates.

    The Symantec business will add an expected $2 billion to Broadcom’s annual revenue going forward, Broadcom said, and would generate savings of more than $1 billion by eliminating cost overlaps in the year after the deal closed.

    https://www.wsj.com/articles/broadcom-makes-10-7-billion-deal-to-buy-symantecs-corporate-focused-security-business-11565298059

  • Salesforce to Buy Workforce Management Software Firm

    Salesforce Inc. said Wednesday it struck a $1.35 billion deal to buy ClickSoftware Technologies Ltd., as the company aims to bolster the services it offers to customers.

    ClickSoftware is used by companies to schedule field service work and develops workplace management software. Private-equity firm Francisco Partners Management L.P. bought the company in 2015 for $438 million.

    “Our acquisition of ClickSoftware will not only accelerate the growth of Service Cloud, but drive further innovation with Field Service Lightning to better meet the needs of our customers,” Bill Patterson, general manager of the Salesforce Service Cloud unit, said in a statement.

    https://www.wsj.com/articles/salesforce-to-buy-workforce-management-software-firm-11565215962

  • Amazon acquires flash-based cloud storage startup E8 Storage

    E8 Storage’s particular focus was on building storage hardware that employs flash-based memory to deliver faster performance than competing offerings, according to its own claims. How exactly AWS intends to use the company’s talent or assets isn’t yet known, but it clearly lines up with their primary business.

    AWS acquisitions this year include TSO Logic, a Vancouver-based startup that optimizes data center workload operating efficiency, and Israel-based CloudEndure, which provides data recovery services in the event of a disaster.

    https://techcrunch.com/2019/07/31/amazon-acquires-flash-based-cloud-storage-startup-e8-storage/

  • Cisco scoops up Voicea to infuse more AI into its collaboration products

    Voicea, incorporated as Rizio Inc., has raised $20 million in funding since hitting the scene three years ago. Cisco’s venture capital arm contributed to the startup’s Series A round in 2017. Salesforce.com Inc., Alphabet Inc.’s GV fund and Battery Ventures were among the other high-profile investors that backed Voicea.

    The Mountain View, California-based startup has developed an artificial intelligence called Eva that can join conference calls to take notes. The assistant transcribes the conversation and enables participants to organize key highlights into an easily browsable list for future reference. Users can instruct Eva to mark an item as important with their voice, which removes the need to scribble notes while a call is ongoing.

    Cisco will bake Voicea’s technology into its Webex family of cloud-based collaboration services. The flagship product of the lineup is the Webex Meetings video conferencing tool, which competes with applications such as Microsoft Corp.’s Skype for Business. Cisco also offers versions of the tool for team collaboration, customer support and webinars along with a line of conference call equipment.

    https://siliconangle.com/2019/08/06/cisco-scoops-voicea-infuse-ai-collaboration-products/

  • Microsoft acquires data privacy and governance service BlueTalon

    Microsoft today announced that it has acquired BlueTalon, a data privacy and governance service that helps enterprises set policies for how their employees can access their data. The service then enforces those policies across most popular data environments and provides tools for auditing policies and access, too.

    Neither Microsoft nor BlueTalon disclosed the financial details of the transaction. Ahead of today’s acquisition, BlueTalon had raised about $27.4 million, according to Crunchbase. Investors include Bloomberg Beta, Maverick Ventures, Signia Venture Partners and Stanford’s StartX fund.

    https://techcrunch.com/2019/07/29/microsoft-acquires-data-privacy-and-governance-service-bluetalon/

  • Salesforce closes $15.7B Tableau deal

    In an amazingly quick turnaround for a deal of this scope, Salesforce announced today that it has closed the $15.7 billion Tableau deal announced in June. The deal is by far the biggest acquisition in Salesforce history, a company known for being highly acquisitive.

    A deal of this size usually faces a high level of regulatory scrutiny and can take six months or longer to close, but this one breezed through the process and closed in less than two months.

    With Tableau and MuleSoft (a company it bought last year for $6.5 billion) in the fold, Salesforce has a much broader view of the enterprise than it could as a pure cloud company. It has access to data wherever it lives, whether on premises or in the cloud, and with Tableau, it enables customers to bring that data to life by visualizing it.

    https://techcrunch.com/2019/08/01/salesforce-closes-15-7b-tableau-deal/

Cloud

  • JEDI Cloud-Computing Contract Award to Be Delayed Weeks

    Mr. Esper said Aug. 1 he would be reviewing the program known as the Joint Enterprise Defense Infrastructure, or JEDI. He didn’t give a timeline for a review at the time. The Pentagon had previously signaled it could award the potentially $10 billion contract by the end of August, with Amazon.com Inc. and Microsoft Corp. as finalists.

    Mr. Deasy said it would take “a number of weeks” to brief Mr. Esper and that the contract isn’t likely to be awarded in August. He said he is planning a number of sessions to explain to Mr. Esper the need for a Pentagon-wide cloud-computing capability, the benefits it would have on the battlefield, and how officials have designed the contract.

    He stressed the program was for a minimum of $1 million over 2 years, and would only reach its $10 billion maximum value over a decade if the Pentagon exercises several options.

    https://www.wsj.com/articles/jedi-cloud-computing-contract-award-to-be-delayed-weeks-11565361020

Security/Privacy

  • Capital One breach also hit other major companies, say researchers

    The data breach at Capital One may be the “tip of the iceberg” and may affect other major companies, according to security researchers.

    Israeli security firm CyberInt said Vodafone, Ford, Michigan State University and the Ohio Department of Transportation may have also fallen victim to the same data breach that saw more than 106 million credit applications and files copied from a cloud server run by Capital One by an alleged hacker, Paige Thompson, a Seattle resident, who was taken into FBI custody earlier this week.

    It follows earlier reports from Forbes and security reporter Brian Krebs indicating that Capital One may not have been the only company affected, pointing to “one of the world’s biggest telecom providers, an Ohio government body, and a major U.S. university,” according to Slack messages sent by the alleged hacker.

    https://techcrunch.com/2019/07/31/capital-one-breach-vodafone-ford-researchers/

  • The Equifax Settlement Is a Cruel Joke

    As part of the $575 million settlement, up to $425 million was set aside to compensate those who could clearly prove they were victims of identity theft as a result of the breach.

    For those unable to prove clear financial harm (most of us), the settlement offered users either free credit reporting for ten years, or a $125 one time cash payout. But because the FTC only set aside $31 million to pay for these payouts, it quickly ran out of cash and is now falsely telling consumers the free credit reporting is a “much better value.”

    But because free credit reporting is routinely doled out as compensation for a steady parade of privacy breaches, it’s effectively worthless to most consumers. Many of these services also include terms of service restrictions that erode your legal rights.

    https://www.vice.com/en_us/article/d3agv7/the-equifax-settlement-is-a-cruel-joke

Infrastructure/Hardware

  • Cisco to Pay $8.6 Million to Settle Government Claims of Flawed Tech

    Cisco will pay civil damages in connection with software that it sold to various government agencies, including Homeland Security, the Secret Service, the Army, the Navy, the Marines, the Air Force and the Federal Emergency Management Agency, according to a government complaint unsealed on Wednesday.

    The government said the video surveillance software it bought from Cisco was “of no value” because it did not “meet its primary purpose: enhancing the security of the agencies that purchase it.” In many cases, the Cisco software actually reduced the protection provided by other security systems, the complaint said.

    https://www.nytimes.com/2019/07/31/technology/cisco-tech-flaw-sales.html

  • Apple Reports Declining Profits and Stagnant Growth, Again

    On Tuesday, the Silicon Valley behemoth said that its net income had fallen 13 percent and that its revenue rose 1 percent in the latest quarter, with iPhone sales continuing to decline and gains in the company’s services and wearables business failing to make up the difference.

    The results showed persistent signs of weakness for one of the world’s financial standouts. Apple built its enormous business on the iPhone, but sales of the device have slipped for three straight quarters in a saturated market for smartphones.

    Yet the results also suggested that the company could be starting to halt declines in those sales and other key areas, including revenue from the Chinese market. Over the previous two quarters, Apple’s profits and revenue had fallen over all.

    https://www.nytimes.com/2019/07/30/technology/apple-earnings-iphone.html
    Shameless Plug: I did an entire podcast about Apple’s shrinking consumer base.

Other

  • Uber and Lyft finally admit they’re making traffic congestion worse in cities

    These figures suggest that Uber and Lyft are hitting some cities harder than previously thought. An independent study commissioned by the San Francisco County Transportation Authority looked at 2017 traffic patterns in the county and concluded that TNCs generated about 6.5 percent of the total VMT on weekdays, and 10 percent on weekends. (TNC, which stands for transportation network company, is an industry term used to describe ride-hailing apps like Uber and Lyft.)

    The findings from Fehr & Peers show totals “nearly twice that previous estimate,” said Gregory Erhardt, a professor of civil engineering at the University of Kentucky who has researched Uber and Lyft’s effects on public transit ridership. “This difference may be due to the continued increase in TNC use over the intervening two years.”

    But some cities aren’t as hard hit as others. Uber and Lyft represent lower percentages of total VMTs in Chicago, LA, and Seattle. And New York City, the largest market for both companies in the US, was left out of the analysis altogether, likely because of the city’s low rate of car ownership and extensive public transportation network.

    https://www.theverge.com/2019/8/6/20756945/uber-lyft-tnc-vmt-traffic-congestion-study-fehr-peers

  • Elizabeth Warren Promises to Kill State Laws That Ban Locally-Owned ISPs

    Warren’s proposal, outlined in a Medium post as part of a broader plan for rural America, includes doling out $85 billion to help fund broadband deployment to underserved areas. FCC data suggests that 39 percent of rural Americans still lack access to broadband.

    But the plan also does something notable: it takes aim at the growing roster of protectionist state laws telecom lobbyists have used to crush competition across the country.

    “Many small towns and rural areas have turned to municipal networks to provide broadband access in places that the private market has failed to serve—but today, as many as 26 states have passed laws hindering or banning municipalities from building their own broadband infrastructure to protect the interests of giant telecom companies,” Warren said.

    https://www.vice.com/en_us/article/mbmjja/elizabeth-warren-promises-to-kill-state-laws-that-ban-locally-owned-isps

Posted on

Supplier Report: 8/2/2019


Photo by Roberto Nickson on Unsplash

Microsoft continues to make strides in the cloud space inching closer to Amazon’s crown (but not that close…yet). The company is also betting on massive AI investments to continue their success in the future.

Meanwhile, T-Mobile and Sprint are finally allowed to merge and Dish will officially become a telecom company.

Acquisitions/Investments

  • T-Mobile and Sprint get DOJ approval for $26 billion merger deal

    The U.S. Department of Justice this morning gave the green light to T-Mobile US and Sprint for their proposed $26 billion merger. The deal, which would combine the nation’s third and fourth largest carriers (by subscriber number) has been green lit on the condition that Sprint sell its prepaid assets (including Boost Mobile) to Dish Network.

    As part of the deal, some nine million prepaid subscribers will move over to Dish, which will also have access to T-Mobile/Sprint’s network for a period of seven years.

    https://techcrunch.com/2019/07/26/t-mobile-and-sprint-get-doj-approval-for-26-billion-merger-deal/

    Experts Say the DOJ Justification for T-Mobile/Sprint Merger Approval Is a Joke

    “Today’s settlement will provide Dish with the assets and transitional services required to become a facilities-based mobile network operator that can provide a full range of mobile wireless services nationwide,” DOJ Assistant Attorney General Makan Delrahim said of the deal.

    But experts consulted by Motherboard say the proposal isn’t likely to work, and the end result of the merger will still very likely be higher prices and worse service for all.

    For one thing, Dish has been promising to build a wireless network for the better part of the last decade with little to show for it. The company has routinely been accused of “spectrum squatting,” or buying spectrum it doesn’t use in a bid to turn around and sell it later when it’s more valuable. Even T-Mobile made this complaint when Dish initially criticized the merger.

    https://www.vice.com/en_us/article/wjvw55/t-mobile-sprint-merger-is-a-joke

Artificial Intelligence

  • Microsoft to Invest $1 Billion in Artificial-Intelligence Startup

    “This is a big investment for Microsoft, even at their size,” said Stifel analyst Brad Reback. “They’ll do scores of acquisitions annually but most of them tend to be smaller technology tuck-ins.”

    OpenAI was launched in 2015 as a nonprofit with a goal of leading efforts to develop artificial general intelligence. It competes with Alphabet Inc. ’s DeepMind Technologies and others. OpenAI is led by CEO Sam Altman, a former president of startup accelerator Y Combinator.

    The Microsoft investment signals a vote of confidence in OpenAI’s recent transformation into a private company from a nonprofit. In March, OpenAI revamped its legal structure to raise more money and gain scale, which enabled it to accept the investment from Microsoft.

    https://www.wsj.com/articles/microsoft-to-invest-1-billion-in-artificial-intelligence-startup-11563813648

Cloud

  • Google Cloud’s run rate is now over $8B

    Google CEO Sundar Pichai, who recently installed former Oracle exec Thomas Kurian as the new head of Google Cloud, announced that this business unit now has an $8 billion annual revenue run rate. That’s up from the $4 billion the company reported in early 2018.

    While Google often felt like an also-ran in the cloud wars, it’s clearly starting to make up some ground. “Other cloud providers would have you believe that no one is using Google, which is not true,” Kurian told me when I talked to him earlier this year. Now he can put some numbers behind this claim.

    To put that into perspective, AWS’s run rate topped $30 billion last quarter while Microsoft Azure is somewhere around $11 billion, though concrete numbers are hard to come by.

    https://techcrunch.com/2019/07/25/google-clouds-run-rate-is-now-over-8b/

  • The cloud computing market is closing in on a $100 billion milestone, but half of it is going to either Amazon or Microsoft, according to an analyst report

    The cloud market, which covers web-based services for infrastructure, platform and hosted private clouds, totaled about $23 billion in the second quarter, according to Synergy Research Group. That’s up 39% from the year-ago period and $1.6 billion from the previous quarter.

    Amazon owned 33% of that market, bigger than the combined share of its four closest rivals: Microsoft, which had 16%, Google, 8%, Alibaba and Tencent. The report also mentioned other key players in the cloud market — IBM, Salesforce, Oracle and Rackspace — which posted lower growth rates and “are more niche-oriented.”

    https://www.businessinsider.com/amazon-microsoft-cloud-gap-narrowing-2019-7

  • Microsoft, AT&T sign cloud deal worth more than $2 billion

    Under the deal, Microsoft and AT&T will also work together on so-called edge computing, which will see Microsoft technology deployed alongside AT&T’s coming 5G network for applications that need extremely small delays in passing data back and forth, such as air traffic control systems for drones. The multi-year deal is worth more than $2 billion, according to a person familiar with the matter.

    The agreement is a major win for Microsoft, which will become AT&T’s “preferred” cloud vendor and is fighting to gain market share from Amazon.com Inc’s Amazon Web Services, the biggest provider of public cloud services. Cloud service customers run their software applications in data centers managed by the cloud provider.

    https://www.reuters.com/article/us-microsoft-at-t-cloud/microsoft-att-sign-cloud-deal-worth-more-than-2-billion-idUSKCN1UC1KK?il=0
    IBM Lands AT&T as Client in Cloud Deal

    The partnership builds on IBM’s $34 billion acquisition of open-source software firm Red Hat, which closed last week. Buying Red Hat strengthened IBM’s standing in the hybrid cloud market. Companies use the hybrid cloud to manage software and other systems across different cloud services and their own data centers.

    IBM said that Red Hat’s open-source software will give AT&T Business the flexibility to move data and applications among various clouds and data centers. AT&T Business until now has worked with multiple cloud vendors.

    https://www.wsj.com/articles/ibm-lands-at-t-as-client-in-cloud-deal-11563317480

Security/Privacy

  • An Equifax hack settlement promises a $125 payout. The truth is more complicated.

    First, if your information (most importantly, your social security number) was part of the hack, then you should assume it’s out there forever. Even if someone hasn’t stolen your identity yet, it could still happen.

    Second, even if you file for reimbursement, there’s a good chance you won’t actually get the full $125 that Equifax and the FTC are talking about. Things are worded carefully in the agreement, but the bottom line is there’s a limited amount of money in the payout pool, and it won’t cover $125 checks for 147 million people.

    Given all that, the biggest loophole you should be aware of is that if you do nothing, you will automatically waive your right to take legal action against Equifax in the future.

    https://www.washingtonpost.com/business/2019/07/27/equifax-settlement-guide-how-get-money-what-you-need-know/?utm_term=.ae82df97b9e0

Infrastructure/Hardware

  • Apple’s and Intel’s No-Brainer Deal

    The Wall Street Journal reported Monday that the two are in “advanced talks.” A deal would purportedly involve both the intellectual property and staff related to Intel’s effort to design and build the crucial smartphone component that ultimately landed only Apple as a customer. The reported purchase price under discussion is about $1 billion.

    That is less than a week’s worth of free cash flow for Apple. It also is about what Intel has been losing annually on modems. Despite landing the sizable iPhone business, Intel’s modem-chip operation never achieved the necessary scale to compete profitably with market leader Qualcomm . QCOM -0.17% Meanwhile, Apple was effectively locked into the Intel modem during its bruising legal tussle with Qualcomm. The latter’s advancements in 5G technology ultimately spurred a settlement of that dispute, but it is an uneasy peace. Intel now has a modem operation with no customer following this year’s iPhone model, and Apple is back to depending on a supplier with whom it now has a rather tortured history.

    https://www.wsj.com/articles/apples-and-intels-no-brainer-deal-11563900798

  • Sony’s wearable AC will arrive too late to save you from this year’s heatwave

    Sony has announced the Reon Pocket, a small cooling device that you can wear like a portable air conditioner. It’s currently live on Sony’s crowdfunding website, where prices start at ¥12,760 (about $117). SlashGear notes that as well as cooling you during hot days, the device, which slots into the back pocket of a specially designed T-shirt, can also warm you up during the winter.

    https://www.theverge.com/circuitbreaker/2019/7/27/8931701/sony-reon-pocket-portable-wearable-air-conditioner-heater-heatwave-t-shirt

    I need this thing now. Right Now.

Other

  • Tesla’s longtime CTO is stepping down

    Longtime Tesla executive JB Straubel is leaving his post as chief technology officer after some 15 years, CEO Elon Musk announced Wednesday evening. Straubel will transition to a “senior advisor” role, according to Musk, and is not fully leaving the company. The news comes as Tesla announced a $408 million loss for the second quarter of 2019.

    “I’m not disappearing, and I just wanted to make sure that people understand that this was not some, you know, lack of confidence in the company, or the team, or anything like that,” Straubel said on the call.

    Straubel is the second C-suite executive to announce a change in his role on one of Tesla’s earnings calls in the last six months. Longtime chief financial officer Deepak Ahuja announced he was retiring on a call in January. Tesla also has a well-documented revolving door when it comes to lower-level executives.

    https://www.theverge.com/2019/7/24/20726728/tesla-jb-straubel-cto-is-stepping-down

Posted on

Supplier Report: 7/12/2019


Photo by Maria Teneva on Unsplash

The 4th of July is over, people are back to work, and the tech industry is picking itself up after a rough couple of weeks.

Old school software companies Corel and Symantec are likely to be acquired. Broadcom is interesting in Symantec and KKR has agreed to purchase Corel. Fans of the “off-brand” (see WordPerfect and PaintShop Pro) software company will be happy to know KKR is looking to invest in Corel’s product line.

The U.K. doesn’t seem to have the issues with Huawei that the U.S. does. The Chinese company has been helping British telecom companies build out their 5G networks… interesting.

Acquisitions/Investments

  • Broadcom Is in Advanced Talks to Acquire Symantec

    Broadcom could reach an agreement to buy the Mountain View, California-based company within weeks, said the people, who asked to not be identified because the matter isn’t public. No deal has been finalized and the talks could fall through, the people said.

    A representative for Symantec declined to comment. A representative for Broadcom didn’t immediately respond to a request for comment.

    https://www.bloomberg.com/news/articles/2019-07-02/broadcom-is-said-to-be-in-advanced-talks-to-acquire-symantec

  • KKR confirms it has acquired Canadian software company Corel, reportedly for over $1B

    The terms of the acquisition are not being disclosed, but when the first rumors of a deal started to emerge a couple of months ago, the price being reported was over $1 billion.

    Corel has brought itself into the modern era, with acquisitions like Parallels — a virtualization giant that lets businesses run far-flung and very fragmented networks as if they weren’t — underscoring that strategy. And that is where KKR appears to be putting its focus. In the memo that a source passed us yesterday, Corel’s CEO Patrick Nichols assured staff that there would be no layoffs and that this acquisition would mean a significant new infusion of capital both to expand its existing business as well as to make more acquisitions to grow.

    https://techcrunch.com/2019/07/03/kkr-corel-vector-parallels/

  • Oracle buys Brazilian firm Oxygen Systems

    Created in 2017 as a spin-off of Chilean IT integrator Sonda, Oxygen Systems is focused on the localization of the systems offering under Oracle’s enterprise resource planning (ERP) Netsuite.

    Oracle’s low-key announcement simply states that the acquisition, which has been completed, “strengthens Oracle NetSuite support for international and global customers, delivering a seamless ERP localization experience in Brazil.”

    Small and medium enterprises represent 20 percent of Oracle’s business in Brazil and over the last couple of years, it has been focusing on chasing more clients in that space.

    https://www.zdnet.com/article/oracle-buys-brazilian-firm-oxygen-systems/

Cloud

  • It was a really bad month for the internet

    What can we learn? For one, internet providers need to do better with routing filters, and, secondly, perhaps it’s not a good idea to run new code directly on a production system.

    These past few weeks have not looked good for the cloud, shaking confidence in the many reliant on hosting giants — like Amazon, Google and more. Although some quickly — and irresponsibly and eventually wrongly — concluded the outages were because of hackers or threat actors launching distributed denial-of-service attacks, it’s always far safer to assume that an internal mistake is to blame.

    https://techcrunch.com/2019/07/05/bad-month-for-the-internet/

Security/Privacy

  • China has been secretly installing spyware on some tourists’ Android phones

    Chinese border agents have been installing spyware on phones from tourists who enter the country through certain crossings in the Xinjiang region, an area where China is known to be conducting intensive surveillance of the largely Muslim ethnic minority groups who live there. The spyware was reported today by a group of publications, including The Guardian, Motherboard, The New York Times, and more.

    Border agents in the region have been requiring tourists to hand over their phones and passcodes before entering, according to the reports. The agents will then disappear with the phones in order to snoop through them. For iPhones, that reportedly includes plugging them into a machine that scans through the phone’s contents. For Android phones, it goes further, with border agents installing a spyware app that scans the phone and collects data.

    https://www.theverge.com/2019/7/2/20679053/china-spyware-tourists-android-phones-xinjiang

  • 7-Eleven Japanese customers lose $500,000 due to mobile app flaw

    Approximately 900 customers of 7-Eleven Japan have lost a collective of ¥55 million ($510,000) after hackers hijacked their 7pay app accounts and made illegal charges in their names.

    The 7pay mobile app was designed to show a barcode on the phone’s screen when customers reach the 7-Eleven cashier counters. The cashier scans the barcode, and the bought goods are charged to the user’s 7pay app and the customer’s credit or debit cards that have been saved in the account.

    However, in a mind-boggling turn of events, the app contained a password reset function that was incredibly poorly designed. It allowed anyone to request a password reset for other people’s accounts, but have the password reset link sent to their email address, instead of the legitimate account owner.

    https://www.zdnet.com/article/7-eleven-japanese-customers-lose-500000-due-to-mobile-app-flaw/

Infrastructure/Hardware

  • Huawei is helping all the UK’s top carriers build their 5G networks

    British carriers apparently aren’t put off by US pressure to ditch Huawei for their 5G network deployments. The Guardian’s sources understand that all four of the UK’s largest wireless providers (EE, O2, Three and Vodafone) are all using Huawei to build their 5G networks. The Chinese firm is reportedly involved with six out of Vodafone’s seven initial 5G cities, while it’s also helping with “hundreds” of EE sites. O2 and Three have also awarded contracts to Huawei, according to the tipsters.

    There might be reasons to take a chance on Huawei, apart from the lack of publicly available evidence of surveillance. Assembly’s Matthew Howett noted that reliance on a single supplier for a cellular network is dangerous. A major failure in Ericsson equipment left O2 users without 3G and LTE service for a full day — if everyone had been using similar hardware, the UK as a whole might have suffered the same problem. It might also delay launches by as much as two years, Howett said. Like it or not, Huawei could be useful in helping some countries offer 5G in a timely and reliable fashion.

    https://www.engadget.com/2019/07/06/huawei-gear-in-uk-5g-networks/