Supplier Report: 9/6/2019


Photo by Sid Leigh on Unsplash

It seems that big companies used the holidays as a time to rest their wallets and take a break from the M&A activity of the last few weeks… or perhaps they were distracted with some other concerns.

Google contractors in Pennsylvania are attempting to unionize due to poor working conditions. The company was also hit with a $200M fine due to YouTube violating children’s privacy.

Speaking of privacy… Google called out a major security threat for Apple iPhones. Several websites were infected with in an injection attack that iPhones were particularly vulnerable to.

Acquisitions/Investments

Artificial Intelligence

  • The Next Hot Job: Pretending to Be a Robot

    More advanced systems require “human supervisory control,” where the robot or vehicle’s onboard AI does the basic piloting but the human gives the machine navigational instructions and other feedback. Prof. Cummings says this technique is safer than actual remote operation, since safety isn’t dependent on a perfect wireless connection or a perfectly alert human operator.

    For every company currently working on self-driving cars, almost every state mandates they must either have a safety driver present in the vehicle or be able to control it from afar. Guidelines from the National Highway Traffic Safety Administration suggest the same.

    Most companies in the space have opted for something short of true teleoperation, which is dependent on an absolutely reliable and fast wireless connection as well as the skill of the human remote operator. Alphabet Inc. subsidiary Waymo’s remote operation system and another being tested by Nissan rely on humans to either confirm the vehicle’s choices when it’s unsure what to do or help it navigate around obstacles.

    https://www.wsj.com/articles/the-next-hot-job-pretending-to-be-a-robot-11567224001

Cloud

  • How Microsoft and Oracle became cloud buddies, and what’s next for their improbable partnership

    The companies are counting on the cloud to fuel their growth, raising the stakes for their partnership. They describe the alliance, in part, as a way for their customers to avoid being locked into a single cloud vendor. In that way, the companies are effectively teaming up against their common competitors, the biggest of them being Amazon Web Services and Google Cloud.

    Oracle is playing catch-up in the cloud, aiming to expand beyond its legacy in databases to build out a fully-fledged public cloud platform, attempting to go toe-to-toe with Amazon, Google, and Microsoft for a wider range of cloud contracts. Oracle reportedly laid off hundreds of people from its cloud-focused Seattle office earlier this year in an indication of the uphill climb it faces.

    https://www.geekwire.com/2019/microsoft-oracle-became-cloud-buddies-whats-next-improbable-partnership/

  • Never tell me the odds! Oracle makes fresh appeal against $10bn JEDI ruling

    Dorian Daley, General Counsel, Oracle Corporation, released the following statement on its latest appeal:
    The Court of Federal Claims opinion in the JEDI bid protest describes the JEDI procurement as unlawful, notwithstanding dismissal of the protest solely on the legal technicality of Oracle’s purported lack of standing. Federal procurement laws specifically bar single award procurements such as JEDI absent satisfying specific, mandatory requirements, and the Court in its opinion clearly found DoD did not satisfy these requirements. The opinion also acknowledges that the procurement suffers from many significant conflicts of interest. These conflicts violate the law and undermine the public trust. As a threshold matter, we believe that the determination of no standing is wrong as a matter of law, and the very analysis in the opinion compels a determination that the procurement was unlawful on several grounds.

    The battle is likely far from over both regardless of the progress of the lawyers as the deal has also become a political football.

    US President Donald Trump weighed in when he belatedly heard the contract might go to a company partly owned by his arch-nemesis Jeff Bezos, also of course publisher of “fake news” provider The Washington Post.

    https://www.theregister.co.uk/2019/08/28/oracles_last_ditch_jedi_appeal/

  • Microsoft vendors win $7.6 billion government deal

    The federal government’s award of a massive 10-year, $7.6 billion computing contract to a trio of vendors led by General Dynamics Corp. to provide Microsoft Corp. office software for the Pentagon late Thursday is the latest indication that cloud-computing leaders are the preferred vendors of choice.

    The Defense Department and General Services Administration announced the winners of the coveted Defense Enterprise Office Solution (DEOS) following a months-long evaluation process by the GSA. DEOS would provide email, calendar, video-calling and other productivity tools to the U.S. military.

    https://www.marketwatch.com/story/microsoft-vendors-win-76-billion-government-deal-2019-08-29

Security/Privacy

  • Google to pay up to $200M to settle FTC YouTube investigation

    Privacy groups had complained to the FTC that YouTube violated the Children’s Online Privacy Protection Act by collecting personal information about minors and using it to target advertisements without getting consent from parents.

    The settlement dwarfs the FTC’s largest fine to date for COPPA violations: $5.7 million levied in February against the operators of Musical.ly, the China-based social video app that’s become a juggernaut since rebranding as TikTok.

    https://www.politico.com/story/2019/08/30/google-ftc-investigation-youtube-1479044

  • Apple still has work to do on privacy

    On the surface, the notion of Apple having a stronger claim to privacy versus Google — an adtech giant that makes its money by pervasively profiling internet users, whereas Apple sells premium hardware and services (including essentially now ‘privacy as a service‘) — seems a safe (or, well, safer) assumption. Or at least, until iOS security fails spectacularly and leaks users’ privacy anyway. Then of course affected iOS users can just kiss their privacy goodbye. That’s why this is a thought experiment.

    https://techcrunch.com/2019/08/31/apple-still-has-work-to-do-on-privacy/

    Malicious websites were used to secretly hack into iPhones for years, says Google

    The researchers found five distinct exploit chains involving 12 separate security flaws, including seven involving Safari, the in-built web browser on iPhones. The five separate attack chains allowed an attacker to gain “root” access to the device — the highest level of access and privilege on an iPhone. In doing so, an attacker could gain access to the device’s full range of features normally off-limits to the user. That means an attacker could quietly install malicious apps to spy on an iPhone owner without their knowledge or consent.

    Google said based off their analysis, the vulnerabilities were used to steal a user’s photos and messages as well as track their location in near-real time. The “implant” could also access the user’s on-device bank of saved passwords.

    https://techcrunch.com/2019/08/29/google-iphone-secretly-hacked/

  • The frighteningly simple technique that hijacked Jack Dorsey’s Twitter account

    As it turns out, getting control of Dorsey’s phone number wasn’t as hard as you might think. According to a Twitter statement, a “security oversight” by the provider let the hackers gain control. In general terms, this kind of attack is called SIM hacking — essentially convincing a carrier to assigning Dorsey’s number to a new phone that they controlled. It’s not a new technique, although it’s more often used to steal Bitcoin or high-value Instagram handles. Often, it’s as simple as plugging in a leaked password. You can protect yourself by adding a PIN code to your carrier account or registering web accounts like Twitter through dummy phone numbers, but those techniques can be too much to ask for the average user. As a result, SIM swapping has become one of online troublemakers’ favorite techniques — and as we found out today, it works more often than you’d think.

    https://www.theverge.com/2019/8/31/20841448/jack-dorsey-twitter-hacked-account-sim-swapping

Software/SaaS

  • Mozilla CEO Chris Beard will step down at the end of the year

    Beard was appointed interim CEO for Mozilla in April 2014, coming on as full-time chief executive in July of that same year. The company has seen a bit of a resurgence in recent years, after having ceded much of its browser market share to the likes of Google and Apple. Firefox has undergone something of a renaissance over the past year, as have the company’s security tools.

    “Today our products, technology and policy efforts are stronger and more resonant in the market than ever, and we have built significant new organizational capabilities and financial strength to fuel our work,” Beard said in the blog post. “From our new privacy-forward product strategy to initiatives like the State of the Internet we’re ready to seize the tremendous opportunity and challenges ahead to ensure we’re doing even more to put people in control of their connected lives and shape the future of the internet for the public good.”

    https://techcrunch.com/2019/08/29/mozilla-ceo-chris-beard-will-step-down-at-the-end-of-the-year/

  • Founders of Successful Tech Companies Are Mostly Middle-Aged

    Previous studies had documented that owners of small businesses tended to be in their late 30s and 40s. But most small businesses stay fairly small: restaurants, dry cleaners, retail stores and the like. They are important but aren’t central to innovation in the economy.

    The new study was able to zero in on high-flying start-ups by bringing together anonymized data collected by different agencies within the federal government. The government matched sales and employment data for start-ups collected by the Census Bureau with information on the founders extracted from Internal Revenue Service filings.

    After stripping identifying information, the government provided the researchers with a data set including 2.7 million business founders. The researchers calculated that the founders’ average age was 42. And for the founders of the 0.1 percent fastest-growing firms, the average age was 45. Firms that were successful enough to have an initial public offering or be acquired by a larger company showed the same pattern: Their founders were generally middle-aged.

    https://www.nytimes.com/2019/08/29/business/tech-start-up-founders-nest.html

Infrastructure/Hardware

  • Amazon buys big in Virginia

    Amazon has paid six times over the valuation for prime land in the data center hotspot of Virginia.

    It bought nearly 90 acres in two plots in Loudoun County, in a part of Virginia outside the US capital Washington DC where Amazon has built nearly 40 data centers already. It paid $118m for land that had been valued at $19.7m, according to the County records office.

    “That’s the way things are going right now. Data centers are going up like hot cakes, ” Erik Larson, manager of the Loudoun County Land Records Office, told DCD.

    Amazon had 38 data centers in Virginia in 2015, according to a document leaked by Wikileaks last year. It had about 100 spread around the US and other countries. But approaching half of all them were in Virginia, close to the Beltway of Washington, where government and military contractors compete for business. It is where Amazon Web Services began operating in 2006.

    https://www.datacenterdynamics.com/news/amazon-buys-big-virginia/

Other

  • 20,000 AT&T Employees Are Striking

    CWA says AT&T is “bargaining in bad faith” and that it has “unfair labor practices.” AT&T sent to the bargaining table people who “do not have the real authority to make proposals or to reach an agreement” in addition to “changing our agreement about how we meet and bargain,” the union said in a blog post.

    CWA’s bargaining team has been fighting for the past few months to renegotiate the AT&T employee contract to share the company’s record-breaking profits. In 2018, AT&T promised to use the windfall from the Republicans’ corporate tax cut to “invest an additional $1 billion” to create “7,000 good-paying jobs for American workers.” The December tax cuts helped AT&T achieve a $19 billion profit in the fourth quarter and $3 billion in annual tax savings. But AT&T has had layoffs, cutting 23,000 jobs.

    https://www.vice.com/en_us/article/43kwyd/20000-atandt-employees-are-striking

  • Google Contractors Are Unionizing With a Steel Workers Union

    66 percent of the eligible contractors at a company called HCL America Inc., signed cards seeking union representation, according to the United Steel Workers union. With the help of the Pittsburgh Association of Technical Professions (PATP), they’re asking the National Labor Relations Board (NLRB) for a vote on union representation. The PATP is a project sponsored by the union aimed at “helping Pittsburgh and Southwestern Pennsylvania workers in high-tech fields organize and bargain collectively.”

    “Workers at HCL deserve far more than they have received in terms of compensation, transparency and consideration, and it has gone on like this for much too long,” HCL worker Renata Nelson said in a press release. “While on-site management tries to do what they can, where they can, their hands are often tied by arbitrary corporate policy.”

    https://www.vice.com/en_us/article/evjxjm/google-contractors-are-unionizing-with-a-steel-workers-union

  • Uber And Lyft Take A Lot More From Drivers Than They Say

    Ultimately, the rider paid $65 for the half-hour trip, according to a receipt viewed by Jalopnik. But Dave made only $15 (the fares have been rounded to anonymize the transaction).

    Uber kept the rest, meaning the multibillion-dollar corporation kept more than 75 percent of the fare, more than triple the average so-called “take-rate” it claims in financial reports with the Securities and Exchange Commission.

    Had he known in advance how much he would have been paid for the ride relative to what the rider paid, Dave said he never would have accepted the fare.

    “This is robbery,” Dave told Jalopnik over email. “This business is out of control.”

    https://jalopnik.com/uber-and-lyft-take-a-lot-more-from-drivers-than-they-sa-1837450373

Supplier Report: 8/30/2019


Photo by Priya Berks on Unsplash

August was a hot month for M&A. There is even more purchasing activity by Microsoft, Splunk, and WordPress (reinforcing how inept Yahoo leadership was during their last few years of independence).

Oracle is facing a revolt from their shareholders over the 2016 acquisition of NetSuite (which Oracle founder Larry Ellison had a significant personal stake in). Oracle isn’t making the strides they need to in the cloud space and NetSuite has not yet become the sales driver it was promised to be.

President Trump (and the rest of the US) and China seem destined for a trade war.  Cisco and Apple have cited China as a cause for sales projections to drop.

Acquisitions/Investments

  • Splunk acquires cloud monitoring service SignalFx for $1.05B

    SignalFx, which emerged from stealth in 2015, provides real-time cloud monitoring solutions, predictive analytics and more. Upon close, Splunk argues, this acquisition will allow it to become a leader “in observability and APM for organizations at every stage of their cloud journey, from cloud-native apps to homegrown on-premises applications.”

    Indeed, the acquisition will likely make Splunk a far stronger player in the cloud space as it expands its support for cloud-native applications and the modern infrastructures and architectures those rely on.

    https://techcrunch.com/2019/08/21/splunk-acquires-cloud-monitoring-service-signalfx-for-1-05b/

  • Microsoft acquires jClarity, a Java performance tuning tool

    Microsoft announced this morning that it was acquiring jClarity, a service designed to tune the performance of Java applications. It will be doing that on Azure from now on. In addition, the company has been offering a flavor of Java called AdoptOpenJDK, which they bill as a free alternative to Oracle Java. The companies did not discuss the terms of the deal.

    As Microsoft pointed out in a blog post announcing the acquisition, they are seeing increasing use of large-scale Java installations on Azure, both internally with platforms like Minecraft and externally with large customers, including Daimler and Adobe.

    https://techcrunch.com/2019/08/19/microsoft-acquires-jclarity-an-open-source-java-performance-tuning-tool/

  • Verizon to Sell Tumblr to WordPress.com Owner

    Verizon Communications Inc.  has agreed to sell its blogging website Tumblr to the owner of popular online-publishing tool WordPress.com, unloading for a nominal amount a site that once fetched a purchase price of more than $1 billion.

    Automattic Inc. will buy Tumblr for an undisclosed sum and take on about 200 staffers, the companies said. Tumblr is a free service that hosts millions of blogs where users can upload photos, music and art, but it has been dwarfed by Facebook , Reddit and other services.

    https://www.wsj.com/articles/verizon-to-sell-tumblr-to-wordpress-owner-11565640000

    Does anybody want to guess how much Automattic is actually paying? I would say less than $100M. Yahoo was insane to pay $1B for this platform, and Verizon was insane to ban the thing that made people use it.

    Update: Tumbler was reportedly purchased for $3M

  • Oracle is suing Larry Ellison and Safra Catz over the $9 billion

    The subject of the lawsuit is Oracle’s $9.3 billion acquisition of NetSuite in 2016, a deal in which a company that Ellison controls — Oracle — paid a premium price to buy a company that Ellison owned. Ellison was NetSuite’s founder and largest shareholder, with a roughly 40% stake.

    The lead lawyer for Firemen’s Retirement System, Joel Friedlander, also said in a hearing in June “We’re seeking multiple billions of dollars in damages.”

    While tossing a multi-billion figure around a hearing is sometimes just lawyerly bravado, in this case, there’s some meat to that number. The NetSuite deal put about $3.5 billion in cash from Oracle’s coffers into Ellison’s pocket.

    https://www.businessinsider.com/oracle-board-members-support-lawsuit-against-larry-ellison-safra-catz-2019-8

  • VMware says it’s looking to acquire Pivotal

    VMware today confirmed that it is in talks to acquire software development platform Pivotal Software, the service best known for commercializing the open-source Cloud Foundry platform. The proposed transaction would see VMware acquire all outstanding Pivotal Class A stock for $15 per share, a significant markup over Pivotal’s current share price (which unsurprisingly shot up right after the announcement).

    Pivotal’s shares have struggled since the company’s IPO in April 2018. The company was originally spun out of EMC Corporation (now DellEMC) and VMware in 2012 to focus on Cloud Foundry, an open-source software development platform that is currently in use by the majority of Fortune 500 companies.

    https://techcrunch.com/2019/08/14/vmware-says-its-looking-to-acquire-pivotal/

Artificial Intelligence

  • Amazon’s AI Can Now Identify Fear

    For those who haven’t heard of the Big Brother-esque Rekognition software, it’s basically a system of neural nets trained on big data (i.e. a ton of photographs and videos) to identify and label objects such as text, activities, “inappropriate behavior,” people, and faces. And if you think Big Brother-esque is a bit of a stretch to describe Rekognition, keep in mind that it’s already being deployed by law enforcement to identify people’s faces. Which isn’t necessarily a bad application in itself, but let your imagination run wild and things could quickly evolve into a Philip K. Dick novel.

    While fear was specifically noted by Amazon as a new emotion that Rekognition can identify, it’s actually only one addition to a number of improvements the AI is making. Along with identifying emotions, Amazon says that Rekognition is now also better at spotting gender and age range. Combined with the aforementioned list of other objects that Rekognition can identify, it’s clear that Amazon wants this software to be able detect and label absolutely any type of image you throw at it.

    https://nerdist.com/article/amazon-rekognition-ai-identify-fear/

  • IBM joins Linux Foundation AI to promote open source trusted AI workflows

    As a Linux Foundation project, the LF AI Foundation provides a vendor-neutral space for the promotion of Artificial Intelligence (AI), Machine Learning (ML) and Deep Learning (DL) open source projects. It’s backed by major organizations like AT&T, Baidu, Ericsson, Nokia and Huawei.

    IBM has a long history of supporting open source, and Moore explained why it’s the right way to quickly raise the bar when it comes to building trustworthy AI. “To get all of us working together, iterating quickly, can cover a lot more ground than any single company can,” he said.

    On top of that, supporting open source projects has the added benefit of expanding the market opportunity for AI vendors like IBM. The goal, Moore said, is to build tools that improve the credibility of AI — and “to do it together, in a way that everybody can inspect and contribute to.”

    https://www.zdnet.com/article/ibm-joins-linux-foundation-ai-to-promote-open-source-trusted-ai-workflows/

Cloud

  • IBM updates cloud-native software with Red Hat OpenShift

    Overall, IBM has unveiled more than 100 new and/or updated software products and services across its Red Hat OpenShift-optimized software portfolio. These new solutions will be delivered on IBM’s hybrid multicloud platform, which is built using open source technologies just like Red Hat OpenShift.

    Some of the new services that are optimized for this open source environment include Red Hat OpenShift on IBM Cloud and Red Hat OpenShift on IBM Z and LinuxONE. Additionally, IBM has unveiled new consulting and technology services delivered by Red Hat certified consultants and application services practitioners. These services are designed to help users better move, build, and manage their workloads in various cloud environments, while also providing a consistent and simplified experience across clouds.

    http://techgenix.com/red-hat-openshift/

Security/Privacy

  • Huawei employees reportedly aided African governments in spying

    The report cites unnamed senior surveillance officers. The paper adds that an investigation didn’t confirm a direct tie between the Chinese government or Huawei executives. It did, however, appear to confirm that employees for the tech giant played a part in intercepting communications.

    The list includes encrypted messages, the use of apps like WhatsApp and Skype and tracking opponents using cellular data.

    A representative for Zambia’s ruling party confirmed with the paper that Huawei technicians have helped in the fight against news sites with opposing stances in the country, stating, “Whenever we want to track down perpetrators of fake news, we ask Zicta, which is the lead agency. They work with Huawei to ensure that people don’t use our telecommunications space to spread fake news.”

    https://techcrunch.com/2019/08/14/huawei-employees-reportedly-aided-african-governments-in-spying/

Infrastructure/Hardware

  • Cisco drops on poor guidance, says China business dropped 25%

    “What we’ve seen is in the state on enterprises … we’re just being — we’re being uninvited to bid,” Robbins said. “We’re not being allowed to even participate anymore.” Sales to carriers declined more forcefully as well, he said.

    The majority of Cisco’s revenue comes from sales of data center networking products, including switches and routers. That business is represented by Cisco’s Infrastructure Platforms segment, which came up with quarterly revenue of $7.88 billion, above the $7.84 billion consensus among analyst polled by FactSet.

    The Applications segment had $1.49 billion in revenue, in line with the $1.49 billion FactSet analyst consensus. Cisco’s Security business contributed $714 million in revenue, less than $739.9 million FactSet consensus estimate.

    https://www.cnbc.com/2019/08/14/cisco-falls-on-soft-guidance.html

Other

  • How Facebook Is Changing to Deal With Scrutiny of Its Power

    Late last year, Facebook halted acquisition talks with Houseparty, a video-focused social network in Silicon Valley, for fear of inciting antitrust concerns, according to two people with knowledge of the discussions. Acquiring another social network after Facebook was already such a dominant player in that market was too risky, said the people, who spoke on the condition they not be identified because the discussions were confidential.

    Facebook has also begun internal changes that make itself harder to break up. The company has been knitting together the messaging systems of Facebook Messenger, Instagram and WhatsApp and has reorganized the departments so that Facebook is more clearly in charge, said two people briefed on the matter. Executives have also worked on rebranding Instagram and WhatsApp to more prominently associate them with Facebook.

    https://www.nytimes.com/2019/08/12/technology/facebook-antitrust.html

  • Trump retaliates in trade war by escalating tariffs on Chinese imports and demanding companies cut ties with China

    Trump initially directed his ire at Powell in Friday tweets, painting the Fed’s lack of monetary easing as a greater threat to American workers and businesses. “My only question is, who is our bigger enemy, Jay Powell or Chairman Xi?” he tweeted.

    Moments later, he demanded American companies cut ties with China.

    “Our great American companies are hereby ordered to immediately start looking for an alternative to China, including bringing your companies HOME and making your products in the USA,” Trump tweeted.

    https://www.washingtonpost.com/business/2019/08/23/china-hits-us-with-tariffs-billion-worth-goods-reinstates-auto-levies-state-media-report/

  • HP CEO steps down, citing ‘family health matter’

    HP Inc. announced this afternoon that Dion Weisler is stepping down as president and CEO. The executive cited a “family health matter” in his decision, noting that he will be returning home to Australia.

    The company already has a successor lined up, as its president of Imaging, Printing and Solutions, Enrique Lores, got unanimous approval from its board of directors. Lores will be assuming the top spot on November 1.

    https://techcrunch.com/2019/08/22/hp-ceo-steps-down-citing-family-health-matter/

Supplier Report: 8/16/2019


Photo by Kong Jun on Unsplash

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

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

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

Acquisitions/Investments

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

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

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

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

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

  • Salesforce to Buy Workforce Management Software Firm

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

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

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

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

  • Amazon acquires flash-based cloud storage startup E8 Storage

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

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

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

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

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

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

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

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

  • Microsoft acquires data privacy and governance service BlueTalon

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

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

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

  • Salesforce closes $15.7B Tableau deal

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

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

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

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

Cloud

  • JEDI Cloud-Computing Contract Award to Be Delayed Weeks

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

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

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

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

Security/Privacy

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

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

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

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

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

  • The Equifax Settlement Is a Cruel Joke

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

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

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

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

Infrastructure/Hardware

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

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

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

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

  • Apple Reports Declining Profits and Stagnant Growth, Again

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

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

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

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

Other

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

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

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

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

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

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

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

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

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

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

Supplier Report: 7/26/2019


Photo by Chris Hall on Unsplash

Microsoft has been performing very well in the cloud space, beating expectations and increasing profits. Other companies like IBM… not so much. In fact IBM’s performance (while growing) is causing some analysts to call Big Blue a “zombie company”.

The drama between the Pentagon, Amazon, and Oracle may not be over. The suppliers that were down-selected (Oracle and IBM) likely complained directly to President Trump (he is friendly with Safra Catz) and he has vowed to “look into it”.

And it looks like Broadcom isn’t so interested in buying Symantec. That deal is said to be dead.

Acquisitions/Investments

  • VMware acquires ML acceleration startup Bitfusion

    VMware today announced that it has acquired Bitfusion, a former participant in our Startup Battlefield competition. Bitfusion was one of the earliest companies to help businesses accelerate their complex computing workloads on GPUs, FPGAs and ASICs. In its earliest iteration, over four years ago, the company’s focus was less on AI and machine learning and more on other areas of high-performance computing, but, unsurprisingly, that shifted as the interested in AI and ML increased in recent years.

    VMware will use Bitfusion’s technology, which is vendor- and hardware-agnostic, to bring similar capabilities to its customers. Specifically, it plans to integrate Bitfusion into its vSphere platform.

    https://techcrunch.com/2019/07/18/vmware-acquires-ml-acceleration-startup-bitfusion/

  • Symantec and Broadcom cease deal negotiations: Sources

    People familiar with the matter added that Broadcom indicated in early conversations that it would be willing to pay $28.25 per share for Symantec, but that following due diligence knocked that figure down below $28.

    Symantec had surged earlier this month after it was revealed that Broadcom was in advanced talks to acquire the security software vendor. Faber had reported the two sides were negotiating a price and had seen possible synergies of $1.5 billion.

    Symantec shares dropped 12.8% to $22.30 on Monday.

    https://www.cnbc.com/2019/07/15/symantec-and-broadcom-cease-deal-negotiations-sources.html

Cloud

  • Microsoft’s Cloud Business Drives Record Sales

    Revenue rose 12% to $33.72 billion from the year-earlier period, the company said Thursday, beating Wall Street estimates. Profit also topped expectations.

    The results for Microsoft’s fiscal fourth quarter ended in June reflected continued strength in corporate spending on the cloud services that have revolutionized business computing over the past decade. Companies increasingly are paying subscriptions for software and renting computer power, rather than buying applications that run on their own servers.

    https://www.wsj.com/articles/microsofts-cloud-business-drives-record-sales-11563481232

  • IBM Revenue Lags as Cloud Pivot Remains a Challenge

    Revenue fell 4.2% from a year earlier to $19.16 billion. Profit rose 3.9% to $2.5 billion, as the company worked to scale back its exposure to businesses with smaller profit margins.

    IBM has trailed Microsoft Corp. and Amazon.com Inc. as customers race to do more of their computing in the cloud—online services that free companies from the need to buy and maintain their own systems. As competitors report consistently strong revenue growth, buoyed by sales of their cloud services, IBM has absorbed a string of declines.

    https://www.wsj.com/articles/ibm-revenue-lags-as-cloud-pivot-remains-a-challenge-11563395020

  • Trump says he’s looking into a Pentagon cloud contract for Amazon or Microsoft because ‘we’re getting tremendous complaints’

    “We’re getting tremendous complaints from other companies,” Trump said in a press pool at the White House during a meeting with the prime minister of The Netherlands. “Some of the greatest companies in the world are complaining about it.” He named Microsoft, Oracle and IBM.

    Since April, Microsoft and Amazon have been the only remaining competitors for the contract after IBM and Oracle were ruled out by the Defense Department. The contract, known as JEDI, is viewed as a marquee deal for the company that ultimately wins it, particularly as Microsoft and Amazon are aggressively pursuing government work for their expanding cloud units.

    https://www.cnbc.com/2019/07/18/trump-says-seriously-looking-into-amazons-pentagon-contract.html

    House Republicans to Trump: Stay Out of Pentagon Cloud Acquisition

    “We believe that it is essential for our national security to move forward as quickly as possible with the award and implementation of this contract,” said the Republican lawmakers, who sit on one of the two Congressional committees with Pentagon oversight responsibilities. “It meets only a portion of DOD’s needs for cloud, but it is an important first step. Moving to the cloud will help DOD operate faster, more efficiently and compete with adversaries, like China.

    “Our committee has conducted oversight of this contract from the beginning. As you know, the courts have upheld DOD’s handling of this competition. While it is understandable that some of the companies competing for the contract are disappointed at not being selected as one of the finalists, further unnecessary delays will only damage our security and increase the costs of the contract.”

    https://www.nextgov.com/it-modernization/2019/07/house-republicans-trump-stay-out-pentagon-cloud-acquisition/158557/

  • Google officially closes ‘Dragonfly,’ its controversial Chinese search project

    Google’s controversial Project Dragonfly has officially been shelved. At a Senate Judiciary Committee hearing this week, Google’s vice president of public policy, Karan Bhatia, said that work on its censored Chinese search engine had been “terminated.” A spokesperson later confirmed that Google has no plans to launch Search in China, and that there is no work being undertaken on such a project.

    https://www.engadget.com/2019/07/17/google-officially-closes-dragonfly-chinese-search/

Security/Privacy

  • Equifax to Pay Around $700 Million to Resolve Data-Breach Probes

    Under the agreement, the credit-reporting firm would pay around $700 million to settle with the Federal Trade Commission, the Consumer Financial Protection Bureau and most state attorneys general, according to people familiar with the matter. The deal would also resolve a nationwide consumer class-action lawsuit, they said.

    The settlement could be announced as soon as Monday, the people said. The amount Equifax ultimately pays could shift based on the number of consumer claims that are eventually filed, they added.

    https://www.wsj.com/articles/equifax-to-pay-around-700-million-to-resolve-data-breach-probes-11563577702

  • Hackers breach 62 US colleges by exploiting ERP vulnerability

    The vulnerability is in Ellucian Banner Web Tailor, a module of the Ellucian Banner ERP that lets universities customize their front-facing web applications. The vulnerability also impacts Ellucian Banner Enterprise Identity Services, a module for managing user accounts.

    Earlier this year, a security researcher named Joshua Mulliken discovered a vulnerability in the authentication mechanism used by the two modules that can allow remote attackers to hijack victims’ web sessions and gain access to their accounts.

    https://www.zdnet.com/article/hackers-breach-62-us-colleges-by-exploiting-erp-vulnerability/

  • Florida DMV sells your personal information to private companies, marketing firms

    The Florida Department of Highway Safety and Motor Vehicles told the I-Team under the law, it must provide driver information but said federal privacy laws and its own rules limit how outside companies can access Floridian’s personal information.

    One of the data brokers accessing Florida DMV information is Arkansas-based marketing firm Acxiom, which has an agreement with the state to buy driver and ID cardholder data for a penny a record.

    On its website, Acxiom claims it has collected information from almost every adult in the United States.

    https://www.abcactionnews.com/news/local-news/i-team-investigates/i-team-florida-dmv-sells-your-personal-information-to-private-companies-marketing-firms

Software/SaaS

  • IBM is a ‘zombie company’: Analyst

    Yes, IBM’s cloud business is growing, but it pales in comparison to the competition. Its second-quarter cloud revenue climbed 5%. Microsoft’s Azure enjoyed revenue growth of 64% in the company’s fourth quarter of its fiscal year, while AWS jumped more than 41% in its first quarter.

    Just this week AT&T inked a reported $2 billion deal with Microsoft to move most of its internal business applications used by its largest unit to Microsoft’s Azure cloud. As part of the agreement, AT&T’s (T) employees will use Azure’s productivity tools and services.

    The deal came one day after IBM said that AT&T would move internal applications used by its business services unit to IBM’s Cloud. The exact terms of the agreement were not disclosed, but an IBM spokesperson describes it as a “multi-billion dollar deal.”

    https://finance.yahoo.com/news/ibm-is-a-zombie-company-analyst-122944734.html

Other

  • EU opens Amazon antitrust investigation

    The EU’s Competition Commission has opened a formal antitrust investigation into Amazon to investigate whether the company is using sales data to gain an unfair advantage over smaller sellers on the Marketplace platform. The Commission says it will look into Amazon’s agreements with marketplace sellers, as well as how Amazon uses data to choose which retailer to link to using the “Buy Box” on its site. The announcement comes on the same day that Amazon announced changes to its third-party seller service agreement in response to a separate antitrust investigation by German regulators.

    https://www.theverge.com/2019/7/17/20696214/amazon-european-union-antitrust-investigation-third-party-seller-marketplace

News You Can Use: 7/24/2019


Photo by Jason Leung on Unsplash

  • Amazon Offers Sellers a Leg Up, With a Catch

    Amazon.com Inc. is offering independent merchants on its platform marketing support, product reviews and prominent display. The catch? Amazon gains the right to purchase a merchant’s brand at any time for a fixed price, often $10,000.

    The program—which allows brand rights to be bought for a fixed price on 60 days’ notice, according to a contract seen by The Wall Street Journal—is part of a push by Amazon to obtain a stable of exclusive brands for the platform. It is the first selling program that allows Amazon to obtain direct control over independent brands that sell on its website, according to merchants familiar with Amazon programs.

    Also:

    The contract sets the price at $10,000, but says designs, patents and trade secrets will remain with the seller after the sale. Sellers in the program may sell the same product elsewhere under a different brand name and keep rights to brands they haven’t entered in the Accelerator program.

    https://www.wsj.com/articles/amazon-offers-sellers-a-leg-up-with-a-catch-11563452450

  • Most of the Google Walkout Organizers Have Left the Company

    The employee resignations highlight growing hostility between Google and its most outspoken employees, who have grown increasingly organized and strident in their demands for significant changes to Google’s approach to issues including sexual harassment claims, military contracts, censored search in China, and equitable treatment of contract workers, who now outnumber full-time employees. That tension presents a challenge to Google’s open company culture, which encouraged employees to debate and dissent on internal forums, but established strong social norms around secrecy. Google evangelized this culture, elements of which have been adopted by other Silicon Valley firms, and the company’s response to employee activism is being closely watched.

    https://www.wired.com/story/most-google-walkout-organizers-left-company/

  • The biggest threat to America? Americans.
  • ‘The climate has changed’: Agencies are finding more young employees report burnout

    Burnout among millennials has been a major talking point this year. At the same time, agency sources say there has been a cultural shift in the way the industry approaches mental health and burnout. Agencies have employed new policies, like no answering emails after 7 p.m. or no Slack on weekends, to combat the burnout. It makes sense to do so, as 32% of agency employees are worried about their mental health, per Digiday+ research.

    “Fifteen years ago, [agencies] dismissed the idea of burnout,” said Jean Freeman, president and CEO of independent shop Zambezi. “The climate has changed, which is for the better, and now we’re paying attention to physical and mental health. If you pay attention to your staff, you can see it.”

    https://digiday.com/marketing/burnout-is-contagious-why-agencies-need-to-listen-when-younger-employees-self-diagnose/

  • The 5G Health Hazard That Isn’t

    According to experts on the biological effects of electromagnetic radiation, radio waves become safer at higher frequencies, not more dangerous. (Extremely high-frequency energies, such as X-rays, behave differently and do pose a health risk.)

    In his research, Dr. Curry looked at studies on how radio waves affect tissues isolated in the lab, and misinterpreted the results as applying to cells deep inside the human body. His analysis failed to recognize the protective effect of human skin. At higher radio frequencies, the skin acts as a barrier, shielding the internal organs, including the brain, from exposure. Human skin blocks the even higher frequencies of sunlight.

    https://www.nytimes.com/2019/07/16/science/5g-cellphones-wireless-cancer.html