Supplier Report: 4/10/2020


Photo by Steve Harvey on Unsplash

Interesting times we are living in. As the social distancing program continues, people are expanding their use of technology. Video conferencing favorite Zoom exploded in use over the last month, but security concerns are forcing users to consider other options.

Amazon was never a beloved company, but people certainly love their services. It is confusing times as workers are pushing back on the company for their safety, but Amazon has emerged as a (perhaps THE) critical service to get needed supplies when you are expected to stay home.

Acquisitions/Investments

  • T-Mobile Closes Merger With Sprint, and a Wireless Giant Is Born

    T-Mobile also envisions taking on cable operators, once its 5G service is up and running. In theory, 5G would allow home viewers to stream shows and movies at speeds they had only been able to get through the cable companies. “It’s the least competitive market I’ve ever seen,” Mr. Sievert said. Most regions of the country have only one cable company servicing the area.

    The deal appeared nearly complete in February, after T-Mobile and Sprint beat back a court challenge from attorneys general in 13 states and the District of Columbia.

    https://www.nytimes.com/2020/04/01/business/media/tmobile-closes-sprint-merger.html

  • Xerox Is Ending Hostile Takeover Bid for HP

    Xerox said Tuesday it is ending both its more than $30 billion tender offer and a proxy fight to replace the printer and PC maker’s board. Xerox concluded it is no longer prudent to pursue the deal given the public health crisis and resulting market swoon.

    The move puts the kibosh on one of the biggest mergers in the works and underscores the blow that the coronavirus has dealt to the world of deal making.

    It marks the end of a five-month-long offensive by Xerox, kicked off when its offer became public in early November after the two companies had earlier explored a combination quietly but failed to come to an agreement. HP has repeatedly rebuffed its rival since then, rejecting Xerox’s latest cash-and-stock offer of $24 a share and an earlier one as insufficient and too risky given the amount of debt involved.

    https://www.wsj.com/articles/xerox-to-end-hostile-takeover-bid-for-hp-11585684800

Security/Privacy

  • What You Need To Know About Marriott’s Recent Data Breach

    In this breach, the company believes that passport information, driver’s license numbers, and credit card information were not part of what was taken. According to their official website, the information that was potentially compromised includes:

    • contact details (e.g., name, mailing address, email address, and phone number)
    • loyalty account information (e.g., account number and points balance—but not passwords)
    • additional personal details (e.g., company, gender, and birthdate day and month)
    • partnerships and affiliations (e.g., linked airline loyalty programs and numbers)
    • preferences (e.g., stay/room preferences and language preference)

    https://lifehacker.com/what-you-need-to-know-about-marriotts-recent-data-breac-1842654474

  • Zoom is leaking some user information because of an issue with how the app groups contacts

    Popular video-conferencing Zoom is leaking personal information of at least thousands of users, including their email address and photo, and giving strangers the ability to attempt to start a video call with them through Zoom.

    The issue lies in Zoom’s “Company Directory” setting, which automatically adds other people to a user’s lists of contacts if they signed up with an email address that shares the same domain. This can make it easier to find a specific colleague to call when the domain belongs to an individual company. But multiple Zoom users say they signed up with personal email addresses, and Zoom pooled them together with thousands of other people as if they all worked for the same company, exposing their personal information to one another.

    https://www.theverge.com/2020/3/31/21201956/zoom-leak-user-information-email-addresses-photos-contacts-directory

  • Zoom CEO: ‘I Really Messed Up’ on Security as Coronavirus Drove Video Tool’s Appeal

    “I thought I was letting our users down,” he told the Journal on a video call, using a Zoom virtual background depicting the Golden Gate Bridge. He hasn’t had more than 4½ hours of sleep a night in the past month, he said. “I feel an obligation to win the users’ trust back.”

    To some extent, Mr. Yuan is paying the price for well-meaning decisions he made early during the coronavirus crisis. When it hit China late last year, he quickly moved to make Zoom more widely accessible for free so medical professionals and others could remain in touch. When financial analysts in early March asked him how Zoom would stand to benefit from its sudden popularity—then still mainly overseas—he said “support for each other is more important than revenue.”

    Though he gives no hint of regretting that choice, Mr. Yuan now says “sometimes you have a good intention, and sometimes you get punished,” adding “we need to slow down and think about privacy and security first. That’s our new culture.”

    https://www.wsj.com/articles/zoom-ceo-i-really-messed-up-on-security-as-coronavirus-drove-video-tools-appeal-11586031129

Other

  • Amazon Worker Who Led Strike Over Virus Says Company Fired Him

    A group of workers at the Staten Island fulfillment center walked off the job Monday to demand Amazon close the facility for extended cleaning, the latest in a wave of virus-related protests. They say a number of their colleagues there were diagnosed with Covid-19. Organizers say more than 60 workers participated in the protest.

    Amazon confirmed it fired Smalls, saying he violated safety regulations, including failing to abide by a 14-day quarantine required after being exposed to an employee with a confirmed case of Covid-19.

    “Mr. Smalls received multiple warnings for violating social distancing guidelines and putting the safety of others at risk,” Amazon said in a statement. Smalls “was asked to remain home with pay for 14-days, which is a measure we’re taking at sites around the world. Despite that instruction to stay home with pay, he came on site today, March 30, further putting the teams at risk.”

    https://www.bloomberg.com/news/articles/2020-03-30/amazon-worker-who-led-strike-over-virus-says-company-fired-him

  • Amazon Has Hired 80,000 Workers Amid Soaring Demand During Coronavirus Outbreak

    The tech giant also announced a raft of worker protections, including plans to check employees’ temperatures at its facilities in the U.S. and Europe and at Whole Foods Market locations by early next week. The company is checking the temperatures of 100,000 employees daily and plans to provide masks to all facilities by next week, according to Dave Clark, Amazon’s senior vice president of world-wide operations. Any employee found to have a temperature above 100.4 degrees Fahrenheit will be asked to go home and not return until after having gone three days without a fever, Mr. Clark said.

    Amazon warehouse workers and other hourly employees have called on the company to do more to protect them as the coronavirus has spread. Employees in at least 15 warehouses in the U.S. have tested positive for Covid-19 or entered quarantine because of symptoms, Amazon said this week. That list has grown almost daily in recent weeks.

    https://www.wsj.com/articles/amazon-has-hired-80-000-workers-out-of-100-000-plan-announced-weeks-ago-11585840027

Supplier Report: 3/27/2020


Photo by Christopher Windus on Unsplash

As more travel and movement restrictions are announced, there is less technology news being released… which is disappointing as I am looking for any news other than Corona.

Thankfully there is SOME news out there.  I am glad to see that AT&T is canceling plans to buy back stock and keeping cash reserves for the impending financial doom that is likely to come.

SAP Ariba did hold a virtual version of their Ariba Live conference last week and I have been picking over the videos.

Acquisitions/Investments

  • The Airlines Want A $58 Billion Bailout After Spending $45 Billion On Stock Buybacks

    Help in the U.S. is needed because “this crisis hit a previously robust, healthy industry at lightning speed,” Airlines for America said in a statement. The trade group outlined a proposal for $50 billion for passenger airlines and $8 billion for cargo carriers.

    But the request for taxpayer assistance via loans, grants and tax relief comes after a decade of massive consolidation — and billions in profits — that put the industry in a far more robust condition than before.

    What’s more, from 2010 to 2019, U.S. airlines spent 96% of their free cash flow, some $45 billion, to purchase shares of their own stock, according to data compiled by Bloomberg. The world’s largest carrier, American Airlines Group Inc., was the biggest buyer, spending $12.5 billion.

    https://www.bloomberg.com/news/articles/2020-03-17/airlines-58-billion-bailout-request-puts-past-under-scrutiny?sref=P6Q0mxvj

  • SoftBank reportedly balks at commitment to buy $3B in shares from WeWork shareholders

    Citing a notice sent to WeWork shareholders, the Journal reported that if SoftBank reneged on the buyback, it would not go back on its commitment to give the office sharing company a $5 billion lifeline.

    According to the Journal’s reporting, the deal to buy back shares isn’t canceled, and could just be an effort to renegotiate terms in light of the global economic slowdown caused by the world’s response to the coronavirus pandemic.

    https://techcrunch.com/2020/03/17/softbank-reportedly-balks-at-commitment-to-buy-3b-in-shares-from-wework-shareholders/

  • AT&T Warns Coronavirus Financial Impact ‘Could Be Material,’ Nixes $4 Billion Stock-Buyback Plan

    AT&T called off plans to repurchase $4 billion in stock during the second quarter — and has halted all other buybacks — saying it has decided to keep the cash to invest in its networks and in taking care of employees during the coronavirus pandemic.

    The telco, which made the disclosure Friday in an SEC filing, said that while its business “continues to operate effectively” during the COVID-19 outbreak the ongoing crisis could have a material impact on financial results.

    “The COVID-19 pandemic has [affected] and will continue affecting economies and businesses around the world. The impacts of the pandemic could be material, but due to the evolving nature of this situation, we are not able at this time to estimate the impact on our financial or operational results,” AT&T said in the filing.

    https://variety.com/2020/biz/news/att-coronavirus-material-cancels-stock-buyback-plan-1203540168/

Software/SaaS

  • Google halts upcoming releases of Chrome and Chrome OS to keep things stable for everyone working from home

    It makes sense that Google doesn’t want to risk unforeseen bugs popping up and making life more difficult for Chromebook owners and everyone doing their work in Chrome during these stressful days. This is also an admission that it’s difficult to balance Chrome stability and new features with the team so decentralized. So Google is wisely prioritizing the former.

    https://www.theverge.com/2020/3/18/21185471/google-pausing-chrome-os-releases-coronavirus-work-schedules

  • SAP’s Ariba Live online: ‘The Network Effect for Buyers and Suppliers’

    Volume growth appears to be coming from three key areas — free supplier enablement options (for lower volume suppliers), general network/transaction growth for existing and new customers, and direct materials/EDI growth.

    However, from a network-value effect perspective, it is true that many of the benefits that we normally see in supplier portals and supplier networks are more oriented to the communication and exchange of documents between buyers and suppliers (rather than deeper and more complex collaboration) — with benefits generally being of greater value for the buyers than for suppliers.

    In Sean’s videoconference he mentioned that they have been working closely with its Supplier Advisory Board to understand what the most important supplier needs and wants are from an ecosystem perspective, and not surprisingly what suppliers want is more sales to drive more revenue and an easier way to use the Ariba Supplier Network (changing the way buyers & suppliers interact, better ways to manage the information, and more network-centric applications). It’s interesting that they didn’t mention a free network, at least for certain services and transactions; but that’s another story we’ve repeatedly addressed in Spend Matters’ coverage.

    https://spendmatters.com/2020/03/20/saps-ariba-live-online-the-network-effect-for-buyers-and-suppliers/

  • OK, Fine, Let’s All Get Back on Facebook

    It’s been almost exactly two years since Facebook’s Cambridge Analytica scandal. It’s also around two years since I wrote about why Facebook didn’t need to listen in on our mics. After all that, I didn’t #deletefacebook, but I vowed to take a step back from its products.

    The reality is, the company collects more personal data than it needs to perform the services it offers users, and has been evasive and even dishonest when asked about all of that data collection.

    Yet just one week into self-isolation, I’m pointing a Facebook-connected camera at my son.

    It’s the ultimate test of what we’re willing to live with after all we’ve learned over the last two years: To make our lives better—or at least easier—will we give the tech giant a pass on its fast and loose take on privacy?

    https://www.wsj.com/articles/ok-fine-lets-all-get-back-on-facebook-11584763207

    Hell No… join Slack or get a Discord server.

Infrastructure/Hardware

  • YouTube joins Netflix in reducing video quality in Europe

    YouTube is reducing the quality of its videos in Europe, as an increase in home usage strains the continent’s internet during the novel coronavirus outbreak, Reuters reports. “We are making a commitment to temporarily switch all traffic in the EU to standard definition by default,” the company said in a statement.

    The decision comes after EU industry chief Thierry Breton called on streaming platforms to help reduce their load on the continent’s infrastructure. Internet traffic is increasing as more people spend time at home in line with social-distancing guidelines during the pandemic. There are fears about the strain this could place on the internet’s infrastructure, and cause further disruption to remote workers and e-learning activities now that businesses and schools have been shuttered.

    https://www.theverge.com/2020/3/20/21187930/youtube-reduces-streaming-quality-european-union-coronavirus-bandwidth-internet-traffic

Other

  • ‘They don’t care about safety’: Amazon workers struggle with pandemic demand

    Workers say the hectic pace of work amid the ongoing coronavirus outbreak is devastating for their physical and mental health as they try to keep up with massive new demand. They also have to deal with their own worries and problems coping with the pandemic.

    “My kids are off from school. A lot of businesses are letting workers work from home. But Amazon workers are going in extra time, we’re doing the opposite of what everybody else is doing and due to the nature of our work, it’s hands-on. We have to do that,” said an Amazon warehouse worker in Troutdale, Oregon, who requested to remain anonymous for fear of retaliation.

    “I usually work 40 hours a week, four 10-hour shifts. We’ve all been called in for a mandatory extra day, a 10-hour shift, which is usually reserved for holiday peak season,” the worker added.

    https://www.theguardian.com/technology/2020/mar/18/amazon-whole-foods-workers-stores-warehouses-coronavirus

  • Anthony Levandowski pleads guilty to one count of trade secrets theft under plea deal

    Anthony Levandowski, the former Google engineer and serial entrepreneur who was at the center of a lawsuit between Uber and Waymo, has pleaded guilty to one count of stealing trade secrets while working at Google under a plea agreement reached with the U.S. District Attorney.

    While Levandowski still faces a possible prison sentence of between 24 to 30 months, the outcome is much rosier than it could have been. In August, federal grand jury indicted Levandowski on 33 counts of theft and attempted theft. He was looking at a protracted legal fight and a trial that wasn’t expected to begin until 2021.

    https://techcrunch.com/2020/03/19/anthony-levandowski-pleads-guilty-to-one-count-of-trade-secrets-theft-under-plea-deal/

Supplier Report: 3/13/2020


Photo by DDP on Unsplash

The Coronavirus continues to dominate the news feeds this week. Several companies are pulling out of or cancelling conferences and directing employees to stop traveling and work from home.

Articles from the New York Times and other respected news outlets are calling these preventative measures “unprecedented”. These actions beg the question, when will things go back to normal and how do firms plan around a global pandemic?

Acquisitions/Investments

  • BMC Software buys Compuware from Thoma Bravo

    By combining with Compuware, BMC said the companies will be better equipped to serve the enterprise technology stack. Together they plan to focus on mainframe operations, cybersecurity, application development, data, and storage as part of their enterprise DevOps strategies.

    “BMC continues to be focused on evolving and investing in our portfolio to address and even anticipate the needs of our customers, helping them to succeed today and into tomorrow,” said BMC chief executive Ayman Sayed. “It’s the ideal time to bring Compuware into our portfolio as the traditional mainframe AppDev market transitions to DevOps. We’re excited to welcome the Compuware team as we build best-of-breed modern mainframe solutions.”

    https://www.zdnet.com/article/bmc-software-buys-compuware-from-thoma-bravo/

  • Nvidia acquires data storage and management platform SwiftStack

    Nvidia today announced that it has acquired SwiftStack, a software-centric data storage and management platform that supports public cloud, on-premises and edge deployments.

    The company’s recent launches focused on improving its support for AI, high-performance computing and accelerated computing workloads, which is surely what Nvidia is most interested in here.

    The two companies did not disclose the price of the acquisition, but SwiftStack had previously raised about $23.6 million in Series A and B rounds led by Mayfield Fund and OpenView Venture Partners. Other investors include Storm Ventures and UMC Capital.

    https://techcrunch.com/2020/03/05/nvidia-acquires-data-storage-and-management-platform-swiftstack/

  • HP Rejects Xerox’s Raised Takeover Offer

    Xerox this week launched an effort to acquire all HP shares outstanding, valuing HP at nearly $35 billion, or $24 a share in cash and stock. It had raised the offer from $22 a share. HP said the value of the offer’s equity component poses a risk to the company and would lead to uncertainties.

    The offer would leave Xerox “burdened with an irresponsible level of debt and which would subsequently require unrealistic, unachievable synergies that would jeopardize the entire company,” HP Chairman Chip Bergh said.

    https://www.wsj.com/articles/hp-rejects-xerox-takeover-offer-11583408223

Cloud

  • Judge says Amazon is ‘likely to succeed’ on key argument in Pentagon cloud lawsuit

    The document provides the first indication of how Judge Patricia Campbell-Smith of the U.S. Court of Federal Claims might rule in a high-stakes bid protest over the Pentagon’s JEDI cloud computing contract, which was awarded to Microsoft in October following intervention from the White House and members of Congress.

    In a blow to Microsoft and the Defense Department, Campbell-Smith recently ordered the Pentagon to halt work on JEDI. In a lengthy opinion explaining her reasoning, she sided with Amazon’s contention that the Pentagon had made a mistake in how it evaluated prices for competing proposals from Amazon and Microsoft.

    https://www.washingtonpost.com/business/2020/03/06/judge-says-amazon-likely-succeed-key-argument-pentagon-cloud-lawsuit/

Security/Privacy

  • Halting $9.8 Billion in Theft Is Key to Crypto Growth, KPMG Says

    At least $9.8 billion in digital assets have been stolen by hackers since 2017 because of lax security or poorly written code, the accounting firm wrote in a report released Monday. Adoption of cryptocurrencies such as Bitcoin and Ether among institutional investors has led to competition for a place in portfolios, making safeguarding the tokens more important that ever, KPMG said.

    “Institutional investors especially will not risk owning crypto assets if their value cannot be safeguarded in the same way their cash, stocks and bonds are,” Sal Ternullo, co-leader of KPMG’s crypto-asset services and co-author of the report, said in a statement. Among the first companies to offer custody services for crypto are Fidelity Investments and units of the exchanges run by Intercontinental Exchange Inc., Coinbase Inc. and Gemini Trust Co.

    https://www.bloomberg.com/news/articles/2020-03-02/halting-9-8-billion-in-crypto-theft-key-to-growth-kpmg-says

Infrastructure/Hardware

  • Honeywell says it will soon launch the world’s most powerful quantum computer

    Honeywell has long built the kind of complex control systems that power many of the world’s largest industrial sites. It’s that kind of experience that has now allowed it to build an advanced ion trap that is at the core of its efforts.

    This ion trap, the company claims in a paper that accompanies today’s announcement, has allowed the team to achieve decoherence times that are significantly longer than those of its competitors.

    **

    The result of this is a quantum computer that promises to achieve a quantum Volume of 64. Quantum Volume (QV), it’s worth mentioning, is a metric that takes into account both the number of qubits in a system as well as decoherence times. IBM and others have championed this metric as a way to, at least for now, compare the power of various quantum computers.

    So far, IBM’s own machines have achieved QV 32, which would make Honeywell’s machine significantly more powerful.

    https://techcrunch.com/2020/03/03/honeywell-says-it-will-soon-launch-the-worlds-most-powerful-quantum-computer/

  • HPE Reports Sales That Miss Estimates on Weak Server Demand

    HPE Chief Executive Officer Antonio Neri has sought to fuel growth at the hardware company by moving to a subscription business model and investing in more sophisticated server technologies. The strategy may take years to pay off. In the meantime, HPE is exposed to China, the origin of the coronavirus, through its supply chain and its H3C server joint venture in the country. The company opted not to give a profit forecast for the current period due to uncertainty over the effects of the outbreak.

    HPE’s server sales decreased 16% to $3.01 billion in the period ended Jan. 31 because of macro uncertainty, supply chain disruption and a factory consolidation, Neri said in an interview. Businesses have reduced the pace of purchases for major information technology products amid slowing global economic growth.

    https://www.bloomberg.com/news/articles/2020-03-03/hpe-reports-sales-that-miss-estimates-on-declining-server-demand

CoronaVirus (Breaking it out into its own section)

  • eBay bans face mask and hand sanitizer listings to halt coronavirus price gouging

    eBay is escalating its fight against online price gouging during the coronavirus outbreak with a new outright ban on all sales of face masks, hand sanitizer, and disinfectant wipes. The new policy, outlined in a notice to sellers posted Friday, applies both to new listings and existing ones. eBay says it is in the process of removing current listings for these items as well as listings that mention the coronavirus, COVID-19 (the illness it causes), and other popular variations of the phrases like 2019nCoV.

    “We will continue to monitor the evolving situation and quickly remove any listing that mentions COVID-19, coronavirus, 2019nCoV (except books) in the title or description,” the notice reads. “These listings may violate applicable US laws or regulations, eBay policies, and exhibit unfair pricing behavior for our buyers.”

    https://www.theverge.com/2020/3/6/21168211/ebay-coronavirus-sales-ban-face-masks-hand-sanitizer-price-gouging

  • SXSW cancels its 400K-person conference due to coronavirus

    SXSW has officially announced it will cancel its tech and music conference slated for March 13th to 22nd in Austin, Texas due to concerns around coronavirus, though it’s exploring rescheduling. “Based on the recommendation of our public health officer and our director of public health . . . I’ve gone ahead and declared a local disaster in the city and associated with that, have issued an order that effectively cancels SXSW,” said Austin Mayor Steve Adler at a press conference today.

    https://techcrunch.com/2020/03/06/sxsw-cancelled/

  • SAP has cancelled all in-person events and says bookings on its Concur travel platform is down 20% due to coronavirus crisis

    SAP said the cancelled events include its Concur Fusion conference in Orlando which was supposed to take place next week and its SAP Ariba Live convention in Las Vegas scheduled later this month.

    SAP also will not participate in the upcoming SXSW gathering in Austin, Texas next week.

    SAP said its own data underscore “the impact of COVID-19,” the company said in a blog post: “We have seen travel transactions in our SAP Concur network down 20% year-over-year.”

    https://www.businessinsider.com/sap-cancelled-in-person-events-due-to-coronavirus-crisis-2020-3

  • As coronavirus pandemic spreads, demand for remote-work startups spikes

    Switching to a remote-work setup isn’t easy. Smartsheet’s Mark Mader told TechCrunch that the “challenge of remote work isn’t just about physical location,” continuing to say that it is “also about the need for people to feel connected and stay informed.” That means intelligent tooling, and smart workplaces norms and practices. (Mader also stressed low-code and no-code tooling as a possible way to empower remote workers).

    The remote-work boom was recently highlighted in Zoom’s earnings report. Its results bested expectations, and in its earnings call, the company said that it was seeing rising demand for its product in the wake of COVID-19, even if most of that rising usage was for its free service. Zoom CEO Eric Yuan said that in light of the spread of the coronavirus, many companies had quickly come to understand the need for a tool like Zoom. The CEO added that he expects more companies to deploy remote work tooling like his video service in the future.

    https://techcrunch.com/2020/03/06/as-coronavirus-pandemic-spreads-demand-for-remote-work-startups-spikes/

  • Google recommends Washington State employees work from home, citing coronavirus risk

    The software giant has not closed the offices outright, nor is it planning to make an official statement regarding the recommendation, but the news certainly points to broader trend of serious precautions around the novel coronavirus outbreak. The move follows a similar decision by Lyft, which sent home employees in its San Francisco office.

    Google maintains a number of different offices throughout the state. Washington has become a major concentration for the spread of the virus in the U.S. Seventy cases have been reported, resulting in 10 deaths. The majority have been in King County, which includes both Seattle and Kirkland — both homes to Google offices.

    https://techcrunch.com/2020/03/05/google-recommends-washington-state-employees-work-from-home-citing-coronavirus-risk/

Other

  • Elizabeth Warren, big tech’s sworn foe, drops out of 2020 race

    Warren’s campaign raised early red flags for tech’s giants, which are now recalibrating for the threat from Sanders.

    Through the 2020 race, the elite upper echelons of tech — executives, venture capitalists and the like — sought a moderate alternative to the economic upheaval they feared would be bad for business, even as their own workers aligned with the contest’s most progressive candidates.

    https://techcrunch.com/2020/03/05/big-techs-sworn-foe-drops-out-of-2020-race/

  • Amazon Warehouse Workers Are Abandoning Their Jobs in Droves

    Between 2011—the year the first fulfillment center opened in California— and 2017, the turnover rate in five counties with Amazon warehouses leaped from 38 percent to 100 percent, according to the report. In other words, more warehouse workers departed from their jobs each year in counties with an Amazon presence than the total number of warehouse jobs.

    “What emerges is a troubling picture of Amazon’s business model—one in which the company views its workers as disposable and designs its operations to foster high turnover,” the report’s authors wrote. “The particularly high rate [of turnover for Amazon] workers as compared to the rate for similar workers suggests that Amazon’s presence has had a unique impact.”

    By comparison, overall turnover rates for warehouse workers in California are 20 percent lower than they are in counties without Amazon warehouses, at 83 percent.

    https://www.vice.com/en_us/article/pkexdb/amazon-warehouse-workers-are-abandoning-their-jobs-in-droves

Supplier Report: 3/6/2020


Photo by Jérémy Stenuit on Unsplash

The COVID-19 virus – which is rapidly earning pandemic status – has already caused massive disruption to the IT industry. As the virus spreads globally, companies are cutting back travel and pulling out of conferences.

The physical supply chain continues to be impacted with no timeline or solutions emerging other than “wait until after April”.

Acquisitions/Investments

  • DocuSign acquires Seal Software for $188M to enhance its AI chops

    DocuSign says it will continue to sell Seal’s analytics tools. What’s surely more important to DocuSign, though, is that it will also leverage the company’s AI tools to bolster its DocuSign CLM offering. CLM is DocuSign’s service for automating the full contract life cycle, with a graphical interface for creating workflows and collaboration tools for reviewing and tracking changes, among other things. And integration with Seal’s tools, DocuSign argues, will allow it to provide its customers with a “faster, more efficient agreement process,” while Seal’s customers will benefit from deeper integrations with the DocuSign Agreement Cloud.

    https://techcrunch.com/2020/02/27/docusign-acquires-seal-software-for-188m-to-enhance-its-ai-chops/

  • Xerox Edges Closer to Fixing Its HP Printer Jam

    Were HP to become the acquirer, the new firm would emerge with significantly less debt. The Xerox offer as it stands would likely load the new entity with debt representing at least five times earnings before interest, taxes, depreciation and amortization. In the unlikely event that HP were to pay cash for Xerox (there would almost certainly be a stock component), then it would have debt of less than four times Ebitda.

    That includes the impact of a $15 billion buyback that HP announced today. The biggest risk for Xerox was that HP would essentially become the counterbidder for itself. By using his own balance sheet to boost shareholder value, Lores is doing just that. A $15 billion repurchase might buy back 50% of the shares, based on HP’s valuation before Xerox’s first bid. That could lift the share price well above the $24 a share of Xerox’s most recent offer.

    https://www.washingtonpost.com/business/xerox-edges-closer-to-fixing-its-hp-printer-jam/2020/02/25/b1c61f82-57e8-11ea-8efd-0f904bdd8057_story.html

Artificial Intelligence/Robotics

  • IBM and Microsoft support the Vatican’s guidelines for ethical AI

    The pledge, presented to Pope Francis today, calls for AI that safeguards the rights of all humans, especially the underprivileged, and for new regulations in areas like facial recognition. It asks tech leaders to “humanise technology and not ‘technologise’ humanity,” Novena News reports.

    “The Vatican is not an expert on the technology but on values,” Francesca Rossi, IBM’s global AI ethics leader, said in a statement. “The collaboration is to make the Vatican and the whole society understand how to use this technology with these values.”

    The pledge is part of a larger workshop on ethical AI led by the Pontifical Academy for Life in the Vatican this week. The Academy hopes governments, NGOs, industry leaders and other associations will join the “Rome Call for AI Ethics,” along with tech companies like IBM and Microsoft.

    https://www.engadget.com/2020/02/28/ibm-microsoft-vatican-ai-ethics-pledge/

Cloud

  • Oracle has been outed as a donor for the Internet Accountability Project

    Database software giant Oracle Corp. has been outed as one of the donors of the Internet Accountability Project, which is a conservative organization that’s been throwing its weight behind a growing call for tougher privacy rules and stronger regulation of big tech companies.

    The IAP had always refused to say who was funding it, but it revealed in a disclosure on its website that Oracle donated between $25,000 and $99,000 last year, according to a Bloomberg report Tuesday.

    Oracle has been funding the IAP as part of its long-running campaigns against tech rivals such as Amazon Web Services Inc. and Google LLC. Oracle has been gunning for Amazon and its cloud business for years, while it’s also involved in a lengthy legal battle with Google regarding the use of patents relating to the Java programming language it owns.

    https://siliconangle.com/2020/02/26/oracle-outed-donor-internet-accountability-project/

Security/Privacy

  • ICE has run facial-recognition searches on millions of Maryland drivers

    U.S. Immigration and Customs Enforcement officials have been permitted to run facial-recognition searches on millions of Maryland driver’s license photos without first seeking state or court approval, state officials said — access that goes far beyond what other states allow and that alarms immigration activists in a state that grants special driver’s licenses to undocumented immigrants.

    More than 275,000 such licenses have been issued statewide since 2013, when the state became the first on the East Coast to defy federal guidelines and allow undocumented immigrants to obtain a license without having to provide proof of legal status. The technology now under scrutiny could let an ICE official run a photograph of an unknown person through the system and see if any potentially undocumented immigrants are returned as a match.

    https://www.washingtonpost.com/technology/2020/02/26/ice-has-run-facial-recognition-searches-millions-maryland-drivers/

Software/SaaS

  • Oracle to pay $12 million to settle ERISA suit

    Oracle Corp. agreed to pay $12 million to settle a class-action lawsuit filed against the firm for allegedly breaching its fiduciary duties in managing its $16.5 billion 401(k) plan.

    The suit, filed in 2016, alleged that Redwood City, Calif.-based Oracle caused participants of its 401(k) savings and investment plan “to pay unreasonable record-keeping and administrative fees” to its record keeper, Fidelity Management Trust Co.

    https://www.pionline.com/courts/oracle-pay-12-million-settle-erisa-suit

  • Expedia cuts 3,000 jobs, including 500 at new Seattle HQ

    Expedia said at the time that it was targeting $300 to $500 million of annual cost savings, but hadn’t previously announced explicit plans for job cuts.

    The layoffs come across the company and globe. About 500 people will be let go in Seattle, where Expedia recently moved to a new 40-acre waterfront campus and employs more than 4,000 people. Expedia said it will eliminate certain projects and activities, and reduce the use of vendors and contractors. It will provide impacted workers with severance packages that include extended healthcare.

    “Moving forward, we will exert more discipline in setting priorities and allocating resources, simplify our business processes and inter-dependencies, raise the bar on performance standards, and demonstrate and demand accountability for results,”

    https://www.geekwire.com/2020/expedia-cuts-3000-jobs-including-500-new-seattle-hq-read-internal-email-employees/

Infrastructure/Hardware

  • Apple Loses Pair of Key Operations, Supply Chain Executives

    Nick Forlenza, a vice president of manufacturing design, has retired from Apple, while Duco Pasmooij, another vice president who worked on operations, is discussing an exit in the near future, according to people familiar with the moves. Pasmooij left the operations team over a year ago, moving into a role reporting to the company’s head of augmented reality efforts, said the people, who asked not to be identified discussing personnel.

    Apple has about a hundred vice presidents across the company who help Chief Executive Officer Tim Cook and the senior executive team run one of the world’s most profitable companies. An Apple spokesman declined to comment. Forlenza and Pasmooij didn’t respond to requests for comment.

    https://www.bloomberg.com/news/articles/2020-02-27/apple-loses-pair-of-key-operations-supply-chain-executives

Other

  • Disney’s Iger Is Now in a Rare Role: Executive Chairman

    Such arrangements work when an executive chairman cedes enough control to give the new CEO autonomy, while remaining present as a sounding board, says Anthony Abbatiello, who heads the leadership and succession-planning practice at Russell Reynolds Associates, an executive-search firm. Transitions can crumble if the newly installed chairman insists on micromanaging operations, he said.

    When Jim McCann, the founder and longtime CEO of 1-800-Flowers.com Inc., became executive chairman in 2016 and handed the reins to his brother, Chris McCann, he says he tried to clearly separate the roles. He stopped attending some meetings and quarterly gatherings of managers, and refrained from participating in corporate earnings calls. Instead, he took on projects focused on innovation and better serving customers, leaving his brother to handle day-to-day operations.

    A mentor advised the two executives to never let others drive a wedge between them. “That’s rung in our ears,” Jim McCann said.

    https://www.wsj.com/articles/disneys-iger-is-now-in-a-rare-role-executive-chairman-11582840014

  • Salesforce co-CEO Keith Block steps down

    Block stepped into the co-CEO role in 2018, after a long career at the company that saw him become vice chairman, president and director before he took this position. Block spent the early years of his career at Oracle . He left there in 2012 after the release of a number of documents in which he criticized then-Oracle CEO Mark Hurd, who passed away last year.

    Industry pundits saw his elevation to the co-CEO role as a sign that Block was next in line as the company’s sole CEO in the future (assuming Benioff would ever step down). After this short tenure as co-CEO, it doesn’t look like that will be the case, but for the time being, Block will stay on as an advisor to Benioff.

    https://techcrunch.com/2020/02/25/salesforce-co-ceo-keith-block-steps-down/

  • Amazon tells employees to pause nonessential travel in U.S. due to coronavirus

    Amazon sent the notification to employees on Friday. In a separate internal communication, Dave Clark, who runs Amazon’s retail operations, told employees to hold off on planning group or team meetings that require travel until at least the end of April, when he estimated that the company will have a better sense of the virus, its spread and its impact.

    In January, Amazon said it was restricting employee travel to China “until further notice” amid the coronavirus outbreak. The company also recommended that employees who are expected to travel back from one of the affected provinces of China work from home for two weeks. Amazon urged employees who experienced any symptoms to seek medical attention before returning to the office.

    https://www.cnbc.com/2020/02/28/amazon-pauses-non-essential-travel-in-us-due-to-coronavirus.html
    Coronavirus concerns prompt cancellation of Facebook F8 developer conference

    “This was a tough call to make — F8 is an incredibly important event for Facebook and it’s one of our favorite ways to celebrate all of you from around the world — but we need to prioritize the health and safety of our developer partners, employees and everyone who helps put F8 on,” Konstantinos Papamiltiadis, Facebook’s director of developer platforms and programs, said in a statement.

    https://www.cnet.com/news/coronavirus-concerns-prompt-cancellation-of-facebook-f8-developer-conference/
    GDC 2020 has been canceled

    In recent days, nearly all of the event’s top corporate sponsors announced that they would not be sending employees to the event due to concerns surrounding coronavirus. Microsoft, Unity, Epic, Amazon, Facebook and Sony had all bowed out of the event. GDC’s statement did not reference the virus.

    The company behind GDC detailed that they will be refunding conference and expo attendees in full, though a blog post details that the group hopes to host a GDC event later in the summer, noting, “We will be working with our partners to finalize the details and will share more information about our plans in the coming weeks.”

    https://techcrunch.com/2020/02/28/gdc-has-been-postponed/

Supplier Report: 1/10/2020


Photo by Annie Spratt on Unsplash

Hitting goals is critical for a business, especially in the tech world. We are seeing companies trade their culture in order to hit business targets (see Google and Amazon). The media is coming down hard on Google for these shifts, but as we have seen with WeWork, the time of the unicorn darlings is over and the stock market is demanding profits once again.

SoftBank and Masayoshi Son are another root cause for this tonal shift. At the moment, many of SoftBank’s investments are performing poorly (again see WeWork and Uber). Son’s investment strategies enabled many of the wayward valuations over the last few years and a market course-correction was in order.

If a good idea doesn’t make a profit (somehow), it isn’t going to survive. Capitalism is cruel and wonderful beast.

Acquisitions/Investments

  • Here’s a Masayoshi Son Shopping List for 2020

    The numbers are so bad, you have to laugh. Uber: down 37% since IPO. WeWork: valuation cut by 80%. Wag: sold back to founders at a loss. But Son will bounce back. He has to, because he has another Vision Fund to raise and run. Instead of being cowed into humility, it’s more likely he’ll double down and make even more fantastical bets with other people’s money. To help him out, I did a multivariate analysis(1) based on past SoftBank deals to come up with a list of investments he ought to consider.

    Also:

    Saudi AramcoTo be frank, Saudi Arabia’s state oil company isn’t really the kind of thing SoftBank should be putting money into because oil is just not futuristic enough. Data is said to be the new oil anyway. But then, taking Saudi money is something many believe Son shouldn’t be doing at all in light of the murder of writer Jamal Khashoggi. Son has pledged not to abandon the Saudis — after all, they gave $45 billion to the Vision Fund — and so that commitment may as well include throwing support behind Crown Prince Mohammed bin Salman and his nation’s largest asset. Riyadh ended up settling for a $1.7 trillion market cap at IPO, after previously assuring everyone that it was worth at least $2 trillion. While it hit that figure within days of listing, the shortfall at IPO is equivalent to three Vision Funds. After WeWork’s $40 billion drop in value, Masa will feel right at home.

    https://www.washingtonpost.com/business/energy/heres-a-masayoshi-son-shopping-list-for-2020/2019/12/30/af519386-2b69-11ea-bffe-020c88b3f120_story.html

  • IBM Bet Everything on an Acquisition in 2019. Now It Needs to Grow Again.

    The Red Hat deal is just one in a decadeslong series of IBM moves to keep up with shifting technology trends. Keep in mind that IBM over the years built and later unloaded large businesses in desktop computers, laptops, printers, microprocessors, chip manufacturing, and typewriters. (Didn’t you once own an IBM Selectric?) The latest move will help IBM stay relevant in a world in which cloud-based services have come to dominate the information technology landscape.

    While IBM over the last decade has made a lot of noise about Watson, the company’s cloud-based artificial intelligence software platform, the company has been slow to establish a leadership position in the public cloud, falling behind the market leaders: Amazon.com’s (AMZN) Amazon Web Services, Microsoft’s (MSFT) Azure, and Alphabet’s (GOOGL) Google Cloud Platform.

    https://www.barrons.com/articles/ibm-bet-everything-on-red-hat-in-2019-51577479288

Artificial Intelligence

  • Google AI Beats Doctors at Breast Cancer Detection—Sometimes

    The model is the latest step in Google’s push into health care. The Alphabet Inc. GOOG 0.07% company has developed similar systems to detect lung cancer, eye disease and kidney injury.

    Google and Alphabet have come under scrutiny for privacy concerns related to the use of patient data. A deal with Ascension, the second-largest health system in the U.S., allows Google to use AI to mine personal, identifiable health information from millions of patients to improve processes and care.

    The health data used in the breast-cancer project doesn’t include identifiable information, Google Health officials said, and the data was stripped of personal indicators before given to Google.

    https://www.wsj.com/articles/google-ai-beats-doctors-at-breast-cancer-detectionsometimes-11577901600

  • Illinois says you should know if AI is grading your online job interviews

    It’s not just that we don’t know how these systems work. Artificial intelligence can also introduce bias and inaccuracy to the job application process, and because these algorithms largely operate in a black box, it’s not really possible to hold a company that uses a problematic or unfair tool accountable.

    A new Illinois law — one of the first of its kind in the US — is supposed to provide job candidates a bit more insight into how these unregulated tools actually operate. But it’s unlikely the legislation will change much for applicants. That’s because it only applies to a limited type of AI, and it doesn’t ask much of the companies deploying it.

    Also:

    “It’s hard to feel that that consent is going to be super meaningful if the alternative is that you get no shot at the job at all,” said Rieke. He added that there’s no guarantee that the consent and explanation the law requires will be useful; for instance, the explanation could be so broad and high-level that it’s not helpful.

    https://www.vox.com/recode/2020/1/1/21043000/artificial-intelligence-job-applications-illinios-video-interivew-act

Cloud

  • Amazon Has Long Ruled the Cloud. Now It Must Fend Off Rivals.

    Amazon’s success in the cloud, more recently, has suffered setbacks beyond the lost Pentagon deal. Last year, one of its biggest banking customers, Capital One Financial Corp. , had more than 100 million customer records stolen that were stored on Amazon’s cloud. And more big corporations are turning to other cloud vendors. Some are worried the online retail giant could become a competitor, according to people familiar with the matter. Many large multinationals have longstanding relationships with Microsoft or Oracle, but not with Amazon.

    “What we’re seeing now is there’s another wave of late-adopter customers coming to market. These are customers that have never used cloud before, so they’re investigating,” said Raj Bala, research director at Gartner. “A fair number of these customers will certainly end up at [Microsoft’s] Azure, because they meet that profile: they run a lot of Windows, they tend to want to play it safe, and the decision makers in that camp tend to favor Azure to a large extent.”

    https://www.wsj.com/articles/amazon-has-long-ruled-the-cloud-now-it-must-fend-off-rivals-11578114008

Security/Privacy

  • What California’s New Privacy Law Means for You

    Not everybody will have to comply with the law. The CCPA only applies to companies that earn more than $25 million in gross annual revenue, collect personal data on more than 50,000 users, or make more than 50 percent of their revenue selling user data.

    It’s also worth highlighting that while the bill technically took effect on January 1, California’s Attorney General has stated enforcement isn’t likely to begin until sometime this summer, giving lawmakers some additional time to work out some early kinks, clarify murky language, or water down existing requirements upon lobbyist request. Already we’re seeing that some companies aren’t complying with the law.

    Groups like the Electronic Frontier Foundation say they spent the better part of 2019 trying to keep lobbyists from numerous industries from weakening the bill, since empowered, informed consumers will inevitably opt out of data sales, costing companies billions.

    https://www.vice.com/en_us/article/z3bvyx/what-californias-ccpa-new-privacy-law-means-for-you

Other

  • Former Google human rights chief says he was ‘sidelined’ over censored Chinese search engine

    As Google pushed for deals in authoritarian Saudi Arabia and launched the Google Center for Artificial Intelligence in Beijing, LaJeunesse says, he pushed for a company-wide human rights program that would bring new oversight to product launches. But Google rebuffed the idea, and eventually brought in a colleague to oversee policy issues related to Dragonfly.

    “Just when Google needed to double down on a commitment to human rights,” LaJeunesse writes in the blog post, “it decided to instead chase bigger profits and an even higher stock price.”

    The issues extended to the broader culture within the company as well, according to LaJeunesse. He says, at one point, during an all-hands meeting, his boss at the company suggested Asian employees “don’t like to ask questions.”

    https://www.theverge.com/2020/1/2/21046522/google-china-dragonfly-ross-lajeunesse-human-rights-chief-censorship

    Google has little choice to be evil or not in today’s fractured internet

    Google used to have a lot of agency, which is unfortunately declining very, very rapidly.

    I’ve talked about the fracturing of the internet into different spheres of influence for quite literally years. Countries like China in particular, but also Russia, Iran and others, are seizing more and more exacting control of the internet’s plumbing and applications, subsuming the original internet’s spirit of openness and freedom and placing this communications medium under their iron fists.

    As this fracturing has occurred, companies like Google, or Shutterstock, or even the NBA, have increasingly faced what I’ve called an “authoritarian straddle” — they can either work with these countries and follow the local rules, or they can just get out, with serious ramifications for their home markets.

    https://techcrunch.com/2020/01/02/google-has-little-choice-to-be-evil-or-not-in-todays-fractured-internet/

  • Amazon threatens to fire critics who are outspoken on its environmental policies

    Amazon’s external communications policy “is not new and we believe is similar to other large companies,” company spokeswoman Jaci Anderson said in a statement. In response to whether Amazon was trying to stifle workers, Anderson said employees are “encouraged to work within their teams,” including by “suggesting improvements to how we operate through those internal channels.”

    Tech workers have recently become more outspoken about concerns over their employers’ policies. During a Sept. 20 protest, thousands of Amazon employees walked out and criticized the company’s climate policies and practices. In November 2018, thousands of Google employees walked off the job to protest of the company’s handling of sexual harassment claims. Workers at Google, Amazon and Microsoft have spoken out in criticism of facial-recognition technology from their companies, fearing misuse by law enforcement and other government agencies.

    https://www.washingtonpost.com/technology/2020/01/02/amazon-threatens-fire-outspoken-employee-critics-its-environmental-policies/
    Additional Comments:
    This isn’t a union situation, but it feels similar to when Regan broke the unions in the 80’s. The air traffic controllers thought they couldn’t be replaced… and then Regan replaced them. Those people were barred from air traffic control jobs for years until Clinton granted amnesty.
    https://www.npr.org/2019/12/13/788002965/episode-958-when-reagan-broke-the-unions