Christy Lake, chief people officer at San Francisco-based Twilio Inc., says several employees have already approached their managers and HR representatives to discuss plans to relocate. The cloud communications company expects more than 20% of its office-based employees will transition to working remotely in the long term. “It’s percolating big-time,” Lake says. She expects the company will have to come up with formal policies and maybe offer a relocation bonus to employees who decide to make the jump.
But the trend raises complicated questions. If employees move to a less expensive location, should Twilio adjust their salaries accordingly? “It’s probably not great business practice to pay Bay Area comps in Michigan,” Lake says. And when it comes time to promote, would those employees have the same opportunity to advance as everybody else? “We need to think proactively,” she says.
My family’s trade is butchering and I have been paying attention to the meat global supply chain (it is weird when my job in supply chain and butchering connects in some way, but I always jump at the chance to make the connections). With the meat shortages, there is talk that the beef trade shouldn’t come back in the same way.
Hiring and Firing: How to Know When You Need to Let Someone Go
There are two different spectrums on which people can perform their jobs — willing and able.
When someone is able to do their job, it means they have the necessary skills, competence and expertise to perform their responsibilities.
When someone is willing to do their job, it means that they are aligned with the company’s mission and values, and are enthusiastic about their role.
People will fall into one of the following four categories, and if you can pinpoint where they are, you can figure out whether to let them go or give them the opportunity to improve.
If an employee doesn’t have the skills to do the job well and they aren’t willing to get better, it’s time to let them go.
Another sign that a recovery is starting… companies are starting to buy other companies again. Microsoft and Zoom are on the move. Intel announced an acquisition last week. But Covid-19 is also being used to rethink and get out of existing deals (see SoftBank).
Meanwhile, Amazon can’t get over their loss to Microsoft for the Pentagon’s JEDI contract… and they are going after each other on their own personal blogs (this is high school level drama).
Acquisitions/Investments
Buyers’ Remorse Is Catching in the Coronavirus Era
Several multibillion-dollar deals have already been scuttled. SoftBank Group Corp. has pulled out of a $3 billion promise to buy stock from employees of WeWork, while Mirae Asset Global Investments Co. canceled the $5.8 billion purchase of 15 U.S. luxury hotels from Anbang Insurance Group Co. WeWork co-founder Adam Neumann and Dajia Insurance Group (which took over Anbang’s assets after it was seized by the Chinese government) both contend that the buyers have used legally faulty pretexts to justify their actions, and they are suing.
Using the fine print to renege on a deal isn’t pretty, but it’s understandable in an environment where virus-related lockdowns have ravaged economies across the world. Forecasts and valuation estimates predating the pandemic have been rendered all but meaningless.
Microsoft to Buy Israeli Cybersecurity Startup CyberX
The U.S. software giant Microsoft is expected to announce in the next few days that it has signed a deal to acquire the Israeli industrial cybersecurity startup CyberX for what sources say will be $165 million.
TheMarker revealed before the coronavirus crisis that the two sides were in negotiations. They are now in the midst of getting signatures on the deal from all of CyberX’s shareholders.
CyberX has developed an internet of things cybersecurity platform for factories and industrial control systems, using machine learning to analyze real-time activities and identifying anomalies. The IoT segment is different in many respects from cybersecurity for computers and servers, where Microsoft is active.
Zoom buys Keybase — its first acquisition — as part of 90-day plan to fix security flaws
The acquisition of the 25-person start-up is the latest move in a 90-day plan that Zoom announced on April 1 to fix its security flaws. Zoom CEO Eric Yuan told CNBC the company needed a solution for users who are demanding the highest level of privacy and certainty that uninvited participants have no access to their conversations.
When Keybase is implemented, the Zoom user who schedules a meeting will be able to choose end-to-end encryption. That setting will prevent anyone from calling in by phone, which is one way people can access meetings, and will disable cloud-based recording of the chat. Yuan said it’s critical that users know that the encryption key is not on Zoom’s servers, so the company has no access to the contents of the call.
Mr. Krishna said the company believes the marketplace adoption of hybrid cloud technology is only about 20% complete, and that the adoption of AI is about 4% complete.
The pandemic will “dramatically accelerate” the adoption of hybrid-cloud and AI, Mr. Krishna said, as companies turn to cloud services to help their employees work and serve customers remotely, as well as to AI to automate certain types of work.
Bid high, lose, try again. Amazon continues to push for a JEDI re-do
We received notice on Tuesday that Amazon has filed yet another protest – this time, out of view of the public and directly with the DoD – about their losing bid for the JEDI cloud contract. Amazon’s complaint is confidential, so we don’t know what it says. However, if their latest complaint mirrors the arguments Amazon made in court , it’s likely yet another attempt to force a re-do because they bid high and lost the first time.
The only thing that’s certain about Amazon’s new complaint is that it will force American warfighters to wait even longer for the 21st-century technology they need – perpetuating Amazon’s record of putting its own interests ahead of theirs.
This latest roadblock is disappointing but not surprising. As my colleague Jon Palmer made clear in a recent blog, Amazon wants a do-over on JEDI . As Jon wrote, “Amazon would have you believe that it lost the award because of bias at the highest levels of government. But Amazon, alone, is responsible for the pricing it offered. As the government explained in its brief: ‘AWS and Microsoft each had a fair chance to build pricing for the entire procurement, based on their overall business pricing.’ Amazon did build its pricing for the entire procurement, and it wasn’t good enough to win.”
Drew Herdener, Amazon’s Vice President of Worldwide Communications responded in a blog post of his own today. It starts out level-headed: “Since we filed our protest, we’ve been clear in our intent: we don’t think the JEDI award was adjudicated fairly, we think political interference blatantly impacted the award decision, and we’re committed to ensuring the evaluation receives a fair, objective, and impartial review.”
But then, things take a hard left turn. Herdener called Microsoft’s blog posts “self-righteous and pontificating,” and went on to state, “Nobody knowledgeable and objective believes they have the better offering. And, this has been further underscored by their spotty operational performance during the COVID-19 crisis (and in 2020 YTD).” Herdener even attacked the DoD: “This could have been easily avoided if [the DoD] had chosen to be responsive in any of the multiple requests we’ve made in the last two weeks.”
WeWork co-founder Adam Neumann accuses SoftBank of abusing its power in new lawsuit
The lawsuit, filed in Delaware Court of Chancery, included a motion to consolidate his case with a lawsuit filed last month by a Special Committee of WeWork’s board. Both lawsuits focus on SoftBank Group and its Vision Fund’s decision to back out of a deal to buy shares of the co-working company.
SoftBank Group pulled its $3 billion tender offer for WeWork shares April 1, citing COVID-19’s impact on the business but also closing conditions not being met. Specifically, it pointed to outstanding regulatory investigations, a growing body of litigation against the company and the failure to restructure a joint venture in China as reasons to torpedo the agreement.
“SoftBank will vigorously defend itself against these meritless claims,” Rob Townsend, senior vice president and chief officer at SoftBank, said in a statement. “Under the terms of our agreement, which Adam Neumann signed, SoftBank had no obligation to complete the tender offer in which Mr. Neumann – the biggest beneficiary – sought to sell nearly $1 billion in stock.”
Uber lays off 14 percent of its workforce in COVID-19-related cost-cutting
Uber will lay off 3,700 full-time employees, or around 14 percent of its global workforce, the company said in filings with the US Securities and Exchange Commission. In addition, Uber CEO Dara Khosrowshahi will forgo his salary for the rest of the year as the company continues to struggle in response to the COVID-19 pandemic.
The layoffs are expected to hit the company’s customer support and recruiting divisions. Uber says it will incur approximately $20 million in severance and other termination-related expenses. Last week, The Information reported that Uber’s top executives were considering laying off as many as 20 percent of the company’s workforce.
At a micro level, the misplaced application of peacetime CEO/wartime CEO can fundamentally change a company for the worse. A wartime CEO, as Horowitz notes, is “completely intolerant, rarely speaks in a normal tone, sometimes uses profanity purposefully, heightens contradictions, and neither indulges consensus building nor tolerates disagreements.” In the strictest application, we are seeing this align with a common false trope that has plagued the tech industry: “To change the world like Steve Jobs, I need to emulate all aspects of Steve Jobs’ personality.” A classic logical fallacy many founders/CEOs have learned the hard way — if you emulate all aspects of Steve Jobs’ personality, it doesn’t mean you will change the world like he did.
At a macro level, peacetime CEO/wartime CEO conjures outdated themes that are at best inaccurate, and at worst, counterproductive. War implies “destruction, ruthlessness, blood, death;” there is an innate sense of machismo and bravado in this language reinforcing a homogeneous tech community. This type of vernacular and attitude increases barriers to a more inclusive community excluding women and underrepresented minority participation.
CIOs Set Aside Rivalry for Collegiality to Tackle Coronavirus IT Problems
Enterprise tech leaders are finding a lot of value in real-time knowledge-sharing as they seek solutions to IT problems brought on by the health crisis and its fallout in the economy, said Sunny Gupta, a board member of the Technology Business Management Council, a nonprofit trade group that seeks to establish standards and best practices for enterprise IT managers.
Among other issues, Mr. Gupta said CIOs are being called upon to rapidly support a distributed workforce, replan IT spending and redo budget forecasts, cancel noncritical projects and refocus IT team efforts into capacity upgrades, public cloud and operational resilience—often all at once.
As a result, the IT industry is seeing an “unprecedented level of peer-to-peer support,” said Mr. Gupta, who is also chief executive of software maker Apptio.
Some employers use software to monitor employees working from home
How My Boss Monitors Me While I Work From Home
With millions of us working from home in the coronavirus pandemic, companies are hunting for ways to ensure that we are doing what we are supposed to. Demand has surged for software that can monitor employees, with programs tracking the words we type, snapping pictures with our computer cameras and giving our managers rankings of who is spending too much time on Facebook and not enough on Excel.
The technology raises thorny privacy questions about where employers draw the line between maintaining productivity from a homebound work force and creepy surveillance. To try to answer them, I turned the spylike software on myself.
Last month, I downloaded employee-monitoring software made by Hubstaff, an Indianapolis company. Every few minutes, it snapped a screenshot of the websites I browsed, the documents I was writing and the social media sites I visited. From my phone, it mapped where I went, including a two-hour bike ride that I took around Battersea Park with my kids in the middle of one workday. (Whoops.)
Amazon is warning stockholders that they plan to spend $4B in operational expenses protecting employees and combating the strain. Pandemic darling Zoom announced a new cloud contract with Oracle (which makes sense since Microsoft, Google, and Amazon have their own competing video conference platforms).
SoftBank’s financial woes continue and they cannot rely on a strong economy for a rebound. Their investments in WeWork continue to sour due to isolation orders globally and I don’t see things getting better for WeWork or SoftBank anytime soon… but relaxed Japanese banking systems could help.
Acquisitions/Investments
Intel to buy smart urban transit startup Moovit for $1B to boost its autonomous car division
Sources tell TechCrunch that the startup — which had previously been backed by Intel Capital in a strategic investment — will become part of Intel’s Israeli automotive hub, which is anchored by Mobileye, the autonomous driving company that Intel acquired for $15.3 billion in 2017.
It’s not clear yet what Moovit would be doing in that hub, but as a rule, ingesting and actioning reliable, real-time traffic data and intelligent routing — the crux of what Moovit does — are some of the most challenging aspects of getting autonomous vehicle services up and running.
SoftBank to write down WeWork by $6.6 billion, compounding portfolio misery
The tech conglomerate has poured more than $13.5 billion into WeWork, one of a string of troubled bets by CEO Masayoshi Son that have laid waste to SoftBank’s full-year earnings.
The group maintained its forecast of a record annual operating loss of 1.35 trillion yen announced earlier this month.
The darkening future for WeWork with customers in lockdown comes as deep-seated problems from SoftBank’s cash-fuelled push for rapid expansion are being compounded by the coronavirus outbeak.
SoftBank shares pared gains to close up 0.5% compared to a 2.1% rise in the benchmark index .N255. The group has launched a record 2.5 trillion yen buyback to support its share price. CEO Son uses his SoftBank shares as collateral for loans.
Oracle wins cloud computing deal with Zoom as video calls surge
The deal is a big win for Oracle, which wants to catch up with rivals such as Amazon.com (AMZN.O) and Microsoft (MSFT.O) that have greater market share, and is selling a new generation of cloud technology after its first generation efforts failed to gain traction.
Zoom and Oracle did not disclose the size of the deal, but said traffic for “millions” of meeting participants is being handled by Oracle’s cloud service and about 7 million gigabytes of Zoom data per day is flowing through Oracle servers.
“It’s exciting to be able to come on to a platform and scale very rapidly,” Zoom’s Chief Technology Officer Brendan Ittelson told Reuters in an interview.
Zoom’s service ran on a mixture of its own data center gear and cloud computing services from Amazon Web Services and Microsoft’s Azure, but it began working with Oracle about six weeks ago.
Microsoft signs Coca-Cola to 5-year cloud technology and business software deal
The companies describe the agreement as a strategic partnership. Microsoft says Coca-Cola’s call center managers will use artificial intelligence in Dynamics 365, for example, to determine which issues are most important for customers such as retailers and vendors in Coke’s supply chain.
In addition to using Microsoft Teams for smaller meetings and collaboration as many of its employees work from home, the company is using Microsoft 365 Live Events for large-scale video presentations, such as employee town halls.
The Redmond, Wash.-based tech giant reports quarterly earnings on Wednesday afternoon, providing the first official glimpse of its financial performance since the global COVID-19 pandemic began. Analysts expect Microsoft to post revenue of $33.9 billion for the quarter, up from $30.6 billion a year ago, and earnings of 1.28 per share, up from 1.14 per share a year ago.
Celonis pushes beyond process mining into automated workflow tooling
“We put all of this together — the intelligence, the action, the automation and we solve business goals for certain departments,” Rinke said.
For starters, that involves supply chain and finance, but there are plans for building even more applications this year and beyond. The way it works for starters, is it connects to the company’s transactions systems, whether that’s SAP or Oracle or something similar. This is where the Banyas acquisition really comes into play,
“You can basically put these applications on top of your transaction systems and tell them which business goals you have — like I want to preserve cash or I want to pay on time — and then we analyze the enterprise’s entire processes towards these business goals, and then drive everything, automate things towards these business goals intelligently,” he said.
While hospitals, urgent care facilities and health systems have stored patient records electronically for years thanks to laws passed under the Clinton administration, those records were difficult for patients themselves to access. The way the system has been historically structured has made it nearly impossible for an individual to access their entire medical history.
It’s a huge impediment to ensuring that patients receive the best care they possibly can, and until now it’s been a boulder that companies have long tried to roll uphill, only to have it roll over them.
Now, new regulations are requiring that the developers of electronic health records can’t obstruct interoperability and access by applications. Those new rules may unlock a wave of new digital services.
Zoom admits it doesn’t have 300 million users, corrects misleading claims
The misleading blog was edited on April 24th, a day after the numbers made headlines worldwide. After The Verge reached out for comment from Zoom, the company added a note to the blog post admitting the error yesterday, and provided the following statement:
“We are humbled and proud to help over 300 million daily meeting participants stay connected during this pandemic. In a blog post on April 22, we unintentionally referred to these participants as “users” and “people.” When we realized this error, we adjusted the wording to “participants.” This was a genuine oversight on our part.”
Zoom’s growth has been impressive, but the company has not actually provided a daily active user count. Zoom usage has soared from 10 million daily meeting participants back in December to 300 million this month. Rivals like Microsoft Teams and Google Meet appear to be closing the gap, though. Microsoft said yesterday it now has 75 million daily active users of Teams, a jump from 70 percent in a month. Microsoft also recorded 200 million meeting participants in a single day this month.
Amazon says it’ll spend $4 billion or more dealing with COVID-19
One of the more interesting bits from Bezos’ statement was that Amazon has a team of current employees that are working to build “incremental testing capacity.” So far, the team has built a lab to pilot tests for its frontline employees, and it pledges to share any progress the team makes to the greater effort against COVID-19.
Amazon’s Q1 2020 performance fell in line with its guidance from late last year, with $4 billion in operating income. Its net sales were at $75.5 billion, which outpaced the growth that it expected last quarter. AWS, its cloud computing services, saw a huge increase year over year, bringing in $10.2 billion this quarter, which is up from $7.7 billion in the same quarter in 2019.
Against the backdrop of the COVID-19 pandemic, these numbers reveal that Amazon — at least so far — is rolling with the punches and keeping up with the unprecedented demand seen for orders around the globe.
Managers turn to surveillance software, always-on webcams to ensure employees are (really) working from home
In the weeks since social distancing lockdowns abruptly scattered the American workforce, businesses across the country have scrambled to find ways to keep their employees in line, packing their social calendars and tracking their productivity to ensure they’re telling the truth about working from home.
Thousands of companies now use monitoring software to record employees’ Web browsing and active work hours, dispatching the kinds of tools built for corporate offices into workers’ phones, computers and homes. But they have also sought to watch over the workers themselves, mandating always-on webcam rules, scheduling thrice-daily check-ins and inundating workers with not-so-optional company happy hours, game nights and lunchtime chats.
Company leaders say the systems are built to boost productivity and make the quiet isolation of remote work more chipper, connected and fun. But some workers said all of this new corporate surveillance has further blurred the lines between their work and personal lives, amping up their stress and exhaustion at a time when few feel they have the standing to push back.
Nursing home design is deadly. Here’s how to change it
Nursing homes have long been seen as grim and sterile, but during the COVID-19 pandemic, they’ve also been fatal—1.3 million individuals living in nursing homes around the world have died from the virus. While elderly people and those with preexisting conditions are high-risk populations, the infection’s rapid rate of spread is also due to the way nursing homes are designed. Most rooms have two or four beds that are placed in close proximity; sinks and windows can be hard to access; and dated systems require surfaces to be frequently touched. In the face of coronavirus, it’s time to rethink how nursing homes are designed.
Also…
Reducing these clusters to 12 people maximum, each with their own room, would help limit virus transmission while allowing for more targeted and intimate care. “Within that cluster, they have their rooms but [there’s a] living room, dining room, [and a] nurse station [with] administrative support,” according to Bryan Langlands, a principal at NBBJ who focuses on the design of healthcare spaces. “The easiest way to help mitigate prevention and spread of COVID-19 is certainly to no longer build any double-bedded, semi-private rooms.”
