Rumors are dominating the news this week…
Amazon reportedly wants to snap up the potential Sprint/T-Mobile merger castoff Boost to create their own phone service. Some are saying Amazon’s interest is “economically insane“.
Meanwhile the WSJ noted that the Department of Justice is looking into investigating Google for anti-trust practices. Google, who has been fined several times by the European Union, has not been given much scrutiny in the US to this point.
Acquisitions/Investments
- LinkedIn Snaps Up Drawbridge, Its Second Known Acquisition In 8 Months
Drawbridge helps companies better understand their customers using machine learning. It addresses user-focused issues like customer experience, digital security, and risk detection according to its website. The company, led by Kamakshi Sivaramakrishnan has also been recognized for its focus on consumer identity, was awarded an early patent for identity resolution.
LinkedIn plans to use Drawbridge’s strength in the area of observations around customers to better target professional audiences, it says.
- Amazon is reportedly interested in buying Boost Mobile
If helping to create a competitor is a necessary condition to get the Sprint/T-Mobile deal done, then perhaps Amazon can help. A report from Reuters suggests the retailer is interested in buying Boost Mobile from the combo, particularly because it would come with the ability to use T-Mobile’s network for six years. The unnamed sources also claimed the company could be interested in spectrum the newly-merged pair would have to divest.
https://www.engadget.com/2019/05/30/amazon-prime-boost-mobile/
Artificial Intelligence
- IBM Sells Face Recognition Surveillance to a Dictatorship: Report
The American technology titan IBM alongside Chinese tech giants Huawei and Hikvision are selling biometric surveillance systems to the UAE’s police and spy agencies, according to an extensive report in BuzzFeed.
The UAE is a dictatorship famous for the oppression of dissent, human rights violations, abuse of laborers and migrants, an ongoing ban on international human rights workers and a fight against freedom of expression. It’s also a wildly rich Persian Gulf authoritarian regime that makes a hell of a customer for companies willing to do business with dictators.
https://gizmodo.com/ibm-sells-face-recognition-surveillance-to-a-dictatorsh-1835101881
Cloud
- Amazon Web Services Is Worth Half a Trillion Dollars, Analyst Estimates
The survey found that 19% of IT workloads are now running in the public cloud. About 55% of the survey group is using cloud-based email systems, 53% rely on the public cloud for web hosting, 52% for sales and marketing applications, and 52% for e-commerce.
Blackledge also nudged up his estimates for AWS—and for Amazon—this morning. He sees AWS revenues of $36.1 billion this year, growing about 31% a year to $140 billion in 2024. He raised his target price for Amazon stock to $2,500 from $2,400, and more remarkably, estimates the value of AWS alone as $506 billion. That is more than the current valuations of IBM, Oracle , and SAP—combined—and about even with the public market valuations for Facebook or Berkshire Hathaway.
https://www.barrons.com/articles/amazon-stock-web-services-worth-half-a-trillion-dollars-51559060451
Security/Privacy
- Microsoft Begs Windows Users To Update Now Citing ‘WannaCry 2’ Security Threat
The warning, which reads almost as if Microsoft wrote it on bended knee, was posted on the Microsoft Security Response Center blog. Referring to the critical Remote Code Execution vulnerability, CVE-2019-0708, that has become better known as BlueKeep, Simon Pope, director of incident response at Microsoft, states that “Microsoft is confident that an exploit exists for this vulnerability.” What’s more, Pope says that such an exploit could “propagate from vulnerable computer to vulnerable computer in a similar way as the WannaCry malware spread across the globe in 2017.” An internet-scale port scanner has already determined that there are at least 923,671 internet-facing machines which are vulnerable to BlueKeep on port 3389 which is used by the Microsoft Remote Desktop feature.
It is worth reading between the lines here, especially concerning that apparent confidence that a BlueKeep exploit exists. While it is not clear if Microsoft has intelligence that suggests active malware has been weaponized in this way, what we do know is that there is proof of concept (PoC) code available already. One BlueKeep demo on GitHub will crash a system that is vulnerable but does not execute the wormable threat that Microsoft is obviously so worried about.
- Apple, Google and WhatsApp condemn UK proposal to eavesdrop on encrypted messages
In practice, the proposal suggests a technique which would require encrypted messaging services — such as WhatsApp — to direct a message to a third recipient, at the same time as sending it to its intended user.
Levy and Robinson argued the proposal would be “no more intrusive than the virtual crocodile clips” which are currently used in wiretaps of non-encrypted communications. This refers to the use of chat and call apps that can silently copy call data during digital exchanges.
Opposing this plan, signatories of the open letter argued that “to achieve this result, their proposal requires two changes to systems that would seriously undermine user security and trust.”
https://www.cnbc.com/2019/05/30/apple-google-and-whatsapp-condemn-gchq-ghost-proposal.html
Software/SaaS
- AWS announces general availability of its document reading service Textract
Amazon says Textract is more of an “OCR++ service” because it can recognize tables with a document and understand that the data is placed in rows and columns.
“The power of Amazon Textract is that it accurately extracts text and structured data from virtually any document with no machine learning experience required,” Swami Sivasubramanian, AWS’s vice president of machine learning, said in a statement. “Subsequently, developers can analyze and query the extracted text and data using our database and analytics services like Amazon Elasticsearch Service, Amazon DynamoDB, and Amazon Athena and integrate with other machine learning services like Amazon Comprehend, Amazon Comprehend Medical, Amazon Translate, and Amazon SageMaker to help customers derive deeper meaning from the extracted text and data.”
Textract supports multiple image formats, including regular JPEG and PNG photo files, scans and PDF documents.
Infrastructure/Hardware
- Dell Technologies fiscal Q1 mixed as storage, server and networking sales fall
The company reported first quarter earnings of $329 billion, or 38 cents a share, on revenue of $21.9 billion, up 3 percent from a year ago. Non-GAAP earnings for the quarter were $1.45 a share.
Wall Street was looking for Dell fiscal first quarter non-GAAP earnings of $1.21 a share on revenue of $22.24 billion. Earnings estimates had a wide range given that Dell is recently public.
- VMware Q1 tops expectations, revenue up 13% to $2.27 billion
VMware delivered strong first quarter financial results Thursday that beat market expectations. The virtualization giant reported a net income of $505 million, or $1.21 per share. The income includes an unexpected gain of $132 million from VMware’s investment in Pivotal Software, the company said.
Non-GAAP earnings were $1.32 per share on revenue of $2.27 billion, up 13% year over year. Wall Street was looking for earnings of $1.28 a share and revenue of $2.24 billion.
https://www.zdnet.com/article/vmware-q1-tops-expectations-revenue-up-13-to-2-27-billion/
Other
- Experts are furious over the FCC’s rosy picture of broadband access
To generate the report, the FCC relies on data from service providers. Using a form, the companies report on the census-derived “blocks” where they serve customers. Questions about the 2019 report started before it was even released: after an FCC press release put out in February trumpeted major gains in access, the nonprofit advocacy group Free Press noticed a major flaw in the figures. A small carrier, called BarrierFree, erroneously reported it served census blocks with nearly 62 million people, which would make it the fourth largest internet service provider in the country.
The FCC rectified the error before the release of the final report, reducing the number of people it believed to have access by about 2 million, but the fact that the flaw was uncovered by Free Press raised questions about how closely the agency was monitoring the data it received. Starks’ statement questioned the figures. “It’s incredible to me that an error this large — approximately 62 million in overstated broadband connections — didn’t materially change the report,” he said.
- Lenovo channels the spirit of IBM: Lays off 500 staff, savages Data Centre Group
Lenovo is eliminating 500 staff worldwide, including some in its US headquarters at Research Triangle Park in Morrisville, North Carolina.
The tech giant’s data centre group is reportedly among the hardest hit, with 200 people set to lose their jobs.
**
The measures certainly don’t align with the manufacturer’s financial performance: Lenovo reported record revenues for its fiscal 2019, growing to $51bn for the first time, up 12.5 per cent year on year. It turned a profit of $597m, as opposed to a loss of $189m it suffered in FY 2018.The Data Center Group was the Chinese biz’s fastest-growing business, with revenue going up 37.1 per cent year-on-year to $6.025bn – but the unit still made a pre-tax loss of $231m.
https://www.theregister.co.uk/2019/05/30/lenovo_lays_off_500/
- Justice Department Prepares Antitrust Investigation of Google
A Justice Department investigation would put Google—and potentially other tech giants—in an unwanted spotlight at a time when major internet companies already have seen their political fortunes turning, both in the U.S. and overseas.
The shift has come with multibillion-dollar antitrust fines for Google from the European Union. Facebook Inc. has come under intense fire over Russian use of its platform to meddle in the 2016 election. Policy makers also are increasingly skeptical of internet companies’ privacy practices, as well as their potential to create other public harm.
https://www.wsj.com/articles/justice-department-is-preparing-antitrust-investigation-of-google-11559348795
Update: Amazon could face heightened antitrust scrutiny under a new agreement between U.S. regulatorsAmazon could face heightened antitrust scrutiny under a new agreement between U.S. regulators that puts it under closer watch by the Federal Trade Commission, three people familiar with the matter said.
The move is the result of the FTC and the Department of Justice, the U.S. government’s leading antitrust enforcement agencies, quietly divvying up competition oversight of two of the country’s top tech companies, according to those people, who spoke on the condition of anonymity because the government’s work is confidential. The Justice Department is set to have more jurisdiction over Google, The Washington Post reported on Friday, paving the way for a potential investigation of the search-and-advertising giant.
Photo by Ben White on Unsplash