Supplier Report: 4/26/2019

Google continues to make moves in the cloud with new hires and policy changes that should make their services more attractive under the leadership of Thomas Kurian but news continues to leak about failing AI ethics boards and past behavior with open source competitors that makes me wonder if Google is actually evil (sometimes). But there is good news… Google’s streaming beef with Amazon seems to be squashed…for now.

Meanwhile, T-Mobile is facing an uphill battle with the DOJ on their Sprint merger plans and Wisconsin might actually push back against Foxconn.


Acquisitions

  • T-Mobile-Sprint Deal Runs Into Resistance From DOJ Antitrust Staff

    The nation’s third- and fourth-biggest carriers by subscribers are facing challenges on several fronts, but their most immediate hurdle comes from the Justice Department’s antitrust division, which is considering whether the deal would present an unacceptable threat to competition.

    In a meeting earlier this month, Justice Department staff members laid out their concerns with the all-stock deal and questioned the companies’ arguments that the combination would produce important efficiencies for the merged firm, the people said.

    https://www.wsj.com/articles/t-mobile-sprint-deal-runs-into-resistance-from-doj-antitrust-staff-11555446461

  • Salesforce is buying MapAnything, a startup that raised over $84 million

    The companies did not reveal the selling price, and Salesforce didn’t have anything to add beyond a brief press release announcing the deal.

    “The addition of MapAnything to Salesforce will help the world’s leading brands accurately plan: how many people they need, where to put them, how to make them as productive as possible, how to track what’s being done in real time and what they can learn to improve going forward,” Salesforce wrote in the statement announcing the deal.

    https://techcrunch.com/2019/04/17/salesforce-is-buying-mapanything-a-startup-that-raised-over-84-million/

  • Why it just might make sense that Salesforce.com is buying Salesforce.org

    Salesforce has always made a lot of hay about being a responsible capitalist. It’s something it highlights at events and really extends with the 1-1-1 model it created, which gives one percent of profit, time and resources (product) to education and nonprofits. Its employees are given time off and are encouraged to work in the community. Salesforce.org has been the driver behind this, but something drove the company to bring Salesforce.org into the fold.

    While it’s easy to be cynical about the possible motivations, it could be a simple business reason, says Ray Wang, founder and principal analyst at Constellation Research. As he pointed out, it didn’t make a lot of sense from a business perspective to be running two separate entities with separate executive teams, bookkeeping systems and sales teams. What’s more, he said there was some confusion over lack of alignment and messaging between the Salesforce.com education sales team and what was happening at Salesforce.org. Finally, he says because Salesforce.org couldn’t issue Salesforce.com stock options, it might not have been attracting the best talent.

    https://techcrunch.com/2019/04/16/why-it-just-might-make-sense-that-salesforce-com-is-buying-salesforce-org/

  • Microsoft acquires Express Logic for its real-time internet of things operating system

    Microsoft today announced that it’s acquired Express Logic, a 23-year-old San Diego, California-based developer of real-time operating systems (RTOS) for internet of things (IoT) and edge devices powered by microcontroller units (MCUs), for an undisclosed amount.

    “With this acquisition, we will unlock access to billions of new connected endpoints, grow the number of devices that can seamlessly connect to Azure and enable new intelligent capabilities,” wrote Microsoft’s director of IoT Sam George in a blog post. “Express Logic’s ThreadX RTOS joins Microsoft’s growing support for IoT devices and is complementary with Azure Sphere, our premier security offering in the microcontroller space.”

    https://venturebeat.com/2019/04/18/microsoft-acquires-express-logic-for-its-real-time-internet-of-things-operating-system/

  • CloudBees acquires Electric Cloud to build out its software delivery management platform

    CloudBees, the enterprise continuous integration and delivery service (and the biggest contributor to the Jenkins open-source automation server), today announced that it has acquired Electric Cloud, a continuous delivery and automation platform that first launched all the way back in 2002.

    The two companies did not disclose the price of the acquisition, but CloudBees has raised a total of $113.2 million while Electric Cloud raised $64.6 million from the likes of Rembrandt Venture Partners, U.S. Venture Partners, RRE Ventures and Next47.

    https://techcrunch.com/2019/04/18/cloudbees-acquires-electric-cloud-to-build-out-its-software-delivery-management-platform/

Artificial Intelligence

  • The most overlooked path to commercialize AI is for companies to do it themselves

    Scaling these teams is expensive and operationally intensive. Going full stack opens up opportunities for companies to integrate labeling workflows into other jobs. Employees traditionally tasked with performing a consumer or enterprise service can take on the extra task at reduced expense. And if their role is assisted by a machine, they will gradually become more productive over time as their assistive models get more accurate with more labeled data.

    A second and inherently related benefit of going full stack is that these startups are able to generate — and own — powerful virtuous data feedback loops. Owning data flows creates more impressive moats than merely locking down static data sets. Deep Sentinel has a natural moat in the consumer security space, for example, as it not only has accurate classifiers, but accurate classifiers that continue to improve with real-world data generated in an environment it can control.

    https://techcrunch.com/2019/04/15/the-most-overlooked-path-to-commercialize-ai-is-for-companies-to-do-it-themselves/

  • What HIPAA Compliance Means for Amazon

    Amazon is currently working with six business partners — Livongo, Express Scripts, Cigna Health Today, Swedish Health Connect, Atrium Health and ERAS, a program of Boston Children’s Hospital — to help customers make appointments, access medical instruction, track a prescription and other services. It’s a big step for one of the world’s most powerful companies, giving it a stronghold in the $3.5 trillion health care industry.

    Amazon had been working for some time to develop software that would meet federal HIPAA regulations, and it even created a health team within its Alexa division a year ago to work on the project, according to Business Insider. Meeting HIPAA standards is important, but the professors questioned whether it is enough.

    “I’m not sure that Amazon’s checking off the regulatory box on HIPAA compliance begins to answer the privacy concerns that we ought to have,” Rosoff said.

    https://knowledge.wharton.upenn.edu/article/alexa-hipaa-compliant/

Cloud

  • Google Cloud brings on 27-year SAP veteran as it doubles down on enterprise adoption

    Unsurprisingly, Kurian is also looking to put his stamp on the executive team, too, and today announced that former SAP executive Robert Enslin is joining Google Cloud as its new president of Global Customer Operations.

    Enslin’s hire is another clear signal that Kurian is focused on enterprise customers. Enslin, after all, is a veteran of the enterprise business, with 27 years at SAP, where he served on the company’s executive board until he announced his resignation from the company earlier this month. After leading various parts of SAP, including as president of its cloud product portfolio, president of SAP North America and CEO of SAP Japan, Enslin announced that he had “a few more aspirations to fulfill.” Those aspirations, we now know, include helping Google Cloud expand its lineup of enterprise customers.

    https://techcrunch.com/2019/04/17/google-cloud-brings-on-27-year-sap-veteran-as-it-doubles-down-on-enterprise-adoption/

Security

  • Facebook admits harvesting 1.5 million people’s email contacts without consent

    Facebook has admitted to accessing and storing the email contacts of as many as 1.5 million of its users without their consent. Business Insider reports that between May 2016 and last month, the social media platform asked some of its new users to verify their email address by providing the password to their email account. After doing so, the users’ contacts would be automatically imported, without any option for the user to opt out.

    Responding to the report, a Facebook spokesperson told Business Insider that email contacts were “unintentionally uploaded” as part of the process. They said that these contacts had never been shared with anyone, and that the company is now deleting the contacts that were uploaded. Facebook also claims to have fixed the “underlying issue” that led to the problem.

    https://www.theverge.com/2019/4/18/18485089/facebook-email-password-contacts-upload-1-5-million-security-cybersecurity

Software/SaaS

  • Former Mozilla exec: Google has sabotaged Firefox for years

    “Over and over. Oops. Another accident. We’ll fix it soon. We want the same things. We’re on the same team. There were dozens of oopses. Hundreds maybe?”

    “I’m all for ‘don’t attribute to malice what can be explained by incompetence’ but I don’t believe Google is that incompetent. I think they were running out the clock. We lost users during every oops. And we spent effort and frustration every clock tick on that instead of improving our product. We got outfoxed for a while and by the time we started calling it what it was, a lot of damage had been done,” Nightingale said.

    https://www.zdnet.com/article/former-mozilla-exec-google-has-sabotaged-firefox-for-years/

  • IBM’s Shares Slide as Growth Challenges Remain

    Goldman Sachs analysts said they were encouraged by IBM’s results, but added that investors remain skeptical of the company’s ability to sustain improvements. Cloud revenue accounted for one-quarter of IBM’s total revenue over the past 12 months, up from 22% a year earlier, an IBM representative said.

    Shares in IBM fell 4.2% to $139.11 on Wednesday. The stock is down 14% over the past year.

    IBM’s year-over-year revenue had fallen in virtually every quarter since Ms. Rometty took over until the last quarter of 2017. The company also posted revenue growth in the first half of last year, but that turnaround proved short-lived: Revenue declined again in the last two quarters of 2018.

    https://www.wsj.com/articles/ibms-shares-tumble-as-challenges-remain-in-hunt-for-growth-11555526709

Infrastructure/Hardware

  • Apple and Qualcomm settle dispute, paving way for 5G iPhone

    The two U.S. companies have been negotiating details of the settlement for weeks, sources told the Nikkei Asian Review. They have agreed to drop all litigation worldwide and struck a six-year licensing agreement, that will ensure the launch of the first 5G iPhone in 2020. The settlement included an undisclosed payment to Qualcomm by Apple, which several weeks ago asked its suppliers to begin testing the chipmaker’s 5G modems, sources said.

    Intel followed up news of the settlement by announcing its exit from 5G chips and raising questions over the future potential of the next generation technology, which the smartphone industry is hoping will help to revive a market suffering its third consecutive year of decline.

    https://asia.nikkei.com/Spotlight/5G-networks/Apple-and-Qualcomm-settle-dispute-paving-way-for-5G-iPhone

  • Intel to Exit 5G Smartphone Modem Business, Focus 5G Efforts on

    Network Infrastructure and Other Data-Centric Opportunities
    The company will continue to meet current customer commitments for its existing 4G smartphone modem product line, but does not expect to launch 5G modem products in the smartphone space, including those originally planned for launches in 2020.

    “We are very excited about the opportunity in 5G and the ‘cloudification’ of the network, but in the smartphone modem business it has become apparent that there is no clear path to profitability and positive returns,” said Intel CEO Bob Swan. “5G continues to be a strategic priority across Intel, and our team has developed a valuable portfolio of wireless products and intellectual property. We are assessing our options to realize the value we have created, including the opportunities in a wide variety of data-centric platforms and devices in a 5G world.”

    https://newsroom.intel.com/news-releases/intel-modem-statement/#gs.6hoz8p

  • Microsoft’s green plan: Our data centers will run on 60% renewable energy by 2020

    With the 60 percent milestone in sight, the company is now targeting over 70 percent renewable energy for its data centers by 2023.

    Microsoft is aiming to cut its carbon emissions by 75 percent by 2030 and as part of that effort has raised its internal carbon ‘tax’ to $15 per metric ton on all carbon emissions, which is nearly double the current rate for carbon emissions, according to Microsoft president Brad Smith.

    Microsoft has had a carbon tax in place since 2012 that puts the burden on business divisions financially to cut their own carbon emissions.

    https://www.zdnet.com/article/microsofts-green-plan-our-data-centers-will-run-on-60-renewable-energy-by-2020/

Other

  • Gov. Tony Evers wants to renegotiate Foxconn deal, says company won’t employ 13,000

    “Clearly the deal that was struck is no longer in play and so we will be working with individuals at Foxconn and of course with (the Wisconsin Economic Development Corp.) to figure out how a new set of parameters should be negotiated,” Evers told reporters in his Capitol office.

    He said it was premature to say what specific changes he would be seeking. Under existing deals, the state and local governments could provide the company up to $4 billion to establish a massive facility in Racine County and create up to 13,000 Wisconsin jobs.

    https://www.jsonline.com/story/news/politics/2019/04/17/tony-evers-says-foxconn-wont-employ-13-000-wants-new-deal/3498897002/

  • Google and Amazon end their ridiculous streaming video spat

    This should mark the end of a long, contentious relationship between Amazon and Google. For a while, Amazon declined to sell Google’s Chromecast devices, products that compete directly with Amazon’s own Fire TV products. Amazon also didn’t include support for Google Cast in the Prime Video app, which made it essentially impossible to get Prime Video on bigger screens if you used Google products. Google responded by pulling support for the YouTube apps on Fire TV as well as the Echo Show

    https://www.engadget.com/2019/04/18/google-amazon-youtube-firetv-prime-video-chromecast/

  • The EU has officially passed its controversial copyright law

    A total of 19 European Council members, including France and Germany, voted in favor of the new Copyright Directive. Italy, Luxembourg, Netherlands, Poland, Finland and Sweden voted against adopting the directive, whereas Belgium, Estonia and Slovenia abstained — but their opposition ultimately didn’t matter. EU countries now have 24 months to apply the directive to their national legislations.

    Under the new rules, the likes of YouTube, Facebook and Instagram will be required to obtain licenses for copyrighted works from rights holders in order to host their content. They’ll also be forced to police copyrighted material through the use of tools such as filters. Critics, including Google, fear a surge in takedown requests could turn the web into a ghost town. Internet campaigners, meanwhile, have warned that the resulting censorship could quell unique forms of online expression, from GIFs to memes.

    https://www.engadget.com/2019/04/15/eu-officially-passed-copyright-law/

Photo by Chris Sabor on Unsplash