Supplier Report: 8/3/2018

Joey Lombardi: Apple hits a trillion

Apple crossed over the line to become a TRILLION dollar company. Will they stay at level or dip down? When will Microsoft or Amazon join them in the Trillion Dollar Club?

Google is rumored to be creating a censored search engine for China. Upon the news being released, several Google employees expressed their disdain for the project.

With Jan Koum gone, Facebook is finally monetizing WhatsApp. Will the platform continue to thrive under Facebook or fail due to competition from Signal and other messaging clients?

Acquisitions

  • GE Puts Digital Assets on the Block

    The Boston-based company has hired an investment bank to run an auction for the operations, which produced $500 million or more in revenue last year and lost money, according to people familiar with the matter.

    Though proceeds of a sale aren’t expected to mean much for a company with a market value of more than $100 billion, the move to unload the operations is symbolic of a dramatic reversal of fortune at GE, which has stumbled badly after a series of missteps.

    https://www.wsj.com/articles/ge-puts-digital-assets-on-the-block-1532972822?ns=prod/accounts-wsj

  • Cisco is buying Duo Security for $2.35B in cash

    Duo Security was founded in 2010 by Dug Song and Jonathan Oberheide and went on to raise $121.M through several rounds of funding. The company has 700 employees with offices throughout the United States and in London, though the company has remained headquartered in Ann Arbor.

    Co-founder and CEO Dug Song will continue leading Duo as its General Manager and will join Cisco’s Networking and Security business led by EVP and GM David Goeckeler. Cisco in a statement said they value Michigan’s “resources, rich talent pool, and infrastructure,” and remain committed to Duo’s investment and presence in the Great Lakes State.

    https://techcrunch.com/2018/08/02/cisco-is-buying-duo-security-for-2-35b-in-cash/

  • Logitech is buying Blue Microphones

    Logitech today announced its intention to acquire Blue Microphones, the hardware company behind popular podcasting microphones like the Yeti and Snowball. It’s a pretty logical acquisition, as far as these things go — Logitech already operates in the audio space, with speakers and gaming headsets.

    The acquisition of Blue would add an important dimension to that category and help the company take on a rapidly expanding space. Blue’s best known products aren’t high-end, exactly, but they’ve become the go-to choice for upstart podcasters looking to get in on the ground floor in the medium.

    https://techcrunch.com/2018/07/30/logitech-is-buying-blue-microphones/

  • DocuSign acquires SpringCM for $220M to continue evolution beyond electronic signatures

    DocuSign says the acquisition will help its growth beyond its bread and butter work in electronic signatures to modernizing what it calls the System of Agreement. That includes everything from preparing, signing, executing, and managing agreements.

    “DocuSign pioneered the e-signature category, and has built a strong SaaS business around that capability. We’ve also started to offer solutions that connect and automate the entire agreement lifecycle,” DocuSign CEO Dan Springer said in a statement. “We’ve done this with Spring CM as a partner across hundreds of joint commercial and enterprise customers. And we have many more DocuSign customers asking us to provide these capabilities natively as part of our platform. That’s why we believe today’s announcement makes such great business sense.”

    https://www.geekwire.com/2018/docusign-acquires-springcm-220m-continue-evolution-beyond-electronic-signatures/

Artificial Intelligence

  • ‘The discourse is unhinged’: how the media gets AI alarmingly wrong

    According to Lipton, in recent years broader interest in topics like “machine learning” and “deep learning” has led to a deluge of this type of opportunistic journalism, which misrepresents research for the purpose of generating retweets and clicks – he calls it the “AI misinformation epidemic”. A growing number of researchers working in the field share Lipton’s frustration, and worry that the inaccurate and speculative stories about AI, like the Facebook story, will create unrealistic expectations for the field, which could ultimately threaten future progress and the responsible application of new technologies.

    Exaggerated claims in the press about the intelligence of computers is not unique to our time, and in fact goes back to the very origins of computing itself.

    https://www.theguardian.com/technology/2018/jul/25/ai-artificial-intelligence-social-media-bots-wrong

Software/SaaS

  • Facebook is making its first serious move to monetize WhatsApp

    WhatsApp has rolled out three new ways for customers to connect quickly with businesses: a shortcut button to immediately start a conversation, the ability to have businesses send you information like a boarding pass on WhatsApp, and real-time support, the company said today.

    At the same time, Facebook will now display ads of businesses that link out to WhatsApp. That means that businesses can purchase ads that lead people directly to an already loaded chat with the business on WhatsApp, and they can start talking from there. Businesses can respond to customers for free if they answer within 24 hours but Facebook will charge them for any response after 24 hours. It looks to be another way for Facebook to cash in on its many apps.

    https://www.theverge.com/2018/8/1/17636418/facebook-whatsapp-ads-monetize

  • Amazon reportedly plans to end its reliance on Oracle — but Oracle says Amazon bought $60 million of its tech just a year ago

    “We don’t believe that Amazon Web Services has any database technology that comes close to the capabilities of the Oracle database. That’s why our biggest competitors like Salesforce.com, SAP, and Amazon continue to rely on the Oracle database to run their business,” she said.

    The conflict between Amazon and Oracle has intensified in recent years: Amazon Web Services, the largest player in the cloud market, is attacking Oracle’s core business with tools designed to steal customers away. Oracle, for its part, has made the cloud a big strategic focus for the company, as it works to get a leg up on Amazon.

    https://www.businessinsider.com/amazon-oracle-databases-reliance-2018-8

Other

  • Google Plans to Launch Censored Search Engine in China, Leaked Documents Reveal

    The project – code-named Dragonfly – has been underway since spring of last year, and accelerated following a December 2017 meeting between Google’s CEO Sundar Pichai and a top Chinese government official, according to internal Google documents and people familiar with the plans.

    Teams of programmers and engineers at Google have created a custom Android app, different versions of which have been named “Maotai” and “Longfei.” The app has already been demonstrated to the Chinese government; the finalized version could be launched in the next six to nine months, pending approval from Chinese officials.

    https://theintercept.com/2018/08/01/google-china-search-engine-censorship/

  • Apple is now a $1 trillion company

    Apple hit the $1 trillion mark early this morning when its stock crossed $207.05 per share at 11:48am ET (the stock has since dropped back down slightly). Given the volatile nature of the market, however, it’s possible Apple may not stay a $1 trillion company for very long, or it could bounce back and forth over the $1 trillion mark in the coming days. It technically also isn’t the first to hit $1 trillion, either — PetroChina briefly reached $1 trillion back in 2007, although the stock soon fell below that mark.

    https://www.theverge.com/2018/8/2/17638764/apple-worlds-first-1-trillion-company-market-cap-stock-price
    Joey Lombardi: Apple hits a trillion

Photo: Ronaldo De Oliveira

Supplier Report: 4/27/2018

Supplier Report 4/27/2018

IBM made national headlines again, not for their products or services, but for the methods they used to eliminate older workers. As the company’s transition to AI, blockchain, and cloud progresses – are they cutting too close to the bone?

Microsoft reported excellent earnings this week (35% net income increase) bolstered by their cloud efforts and LinkedIn acquisition.

Google is reportedly taking losses in their home device market, but they have managed to avoid public ire over their data collections methods. The company is rumored to be collecting more data than Facebook and yet they have avoided public backlash (but they are still dealing with the EU over their monopoly settlement).

Acquisitions

  • LinkedIn among Microsoft’s fastest growing businesses as $26B investment begins to pay off

    LinkedIn brought in more than $1.3 billion in revenue this quarter, up from $976 million in its first full quarter under the Microsoft umbrella. LinkedIn is still operating at a loss, mostly due to long-term costs associated with the acquisition, and that figure has declined every quarter since the deal closed.

    LinkedIn is part of Microsoft’s Productivity and Business Processes segment, which reported just over $9 billion in revenue for the quarter. LinkedIn accounted for about 14 percent of that segment’s revenue.

    https://www.geekwire.com/2018/linkedin-among-microsofts-fastest-growing-businesses-26b-investment-begins-pay-off/

Artificial Intelligence

  • IBM Security launches open-source AI

    The toolkit, called the Adversarial Robustness Toolbox, goes beyond the usual collection of attacks used to test an AI’s ability, Sridhar Muppidi, IBM Fellow, VP and CTO IBM Security told SC Media at RSA this week. The toolbox has been released on Github and is available for download.

    “So far, most libraries that have attempted to test or harden AI systems have only offered collections of attacks. While useful, developers and researchers still need to apply the appropriate defenses to actually improve their systems,” he said.

    The toolbox uses multiple attacks against an AI system and then the security team tasked with increasing the AI’s effectiveness can choose the most effective defense. The way it does is to try and trick an AI with intentionally modified external data. Muppidi said the data sent against the AI is made “fuzzy” causing the AI to misclassify the data.

    https://www.scmagazine.com/ibm-security-launches-open-source-ai/article/760190/

  • European Commission: “We Need to Invest €20 billion in AI”

    “AI is transforming our world. It presents new challenges that Europe should meet. The Commission is playing its part: today, we are giving a boost to researchers so that they can develop the next generation of AI technologies and applications, and to companies, so that they can embrace and incorporate them,” he added.

    Warning of a brain drain, the Commission said it will support business-education partnerships to attract and keep more AI talent in Europe, set up dedicated training schemes with financial support from the European Social Fund, and support digital skills, competencies in science, technology, engineering and mathematics (STEM), entrepreneurship and creativity.

    https://www.cbronline.com/news/eu-multi-billion-ai-investment

Cloud

  • Microsoft’s Cloud Has Business Booming Again

    The company’s net income rose 35 percent from a year earlier, to $7.4 billion. Revenue rose 16 percent to $26.8 billion in the quarter, exceeding the Wall Street consensus forecast of nearly $25.8 billion.

    Microsoft’s earnings per share increased 36 percent to 95 cents a share, well above the analysts’ average estimate of 85 cents a share, compiled by Thomson Reuters.

    Since Satya Nadella became chief executive in 2014, the cloud portion of Microsoft’s revenue has soared from 3 percent to more than 21 percent this year, according to estimates by Credit Suisse.

    https://www.nytimes.com/2018/04/26/technology/microsoft-cloud-quarterly-report.html

Security

  • Who Has More of Your Personal Data Than Facebook? Try Google

    Google also is the biggest enabler of data harvesting, through the world’s two billion active Android mobile devices. Because Google’s Android OS helps companies gather data on us, then Google is also partly to blame when troves of that data are later used improperly, says Woodrow Hartzog, a professor of law and computer science at Northeastern University.

    A good example of this is the way Facebook has continuously harvested Android users’ call and text history. Facebook never got this level of access from Apple ’s iPhone, whose operating system is designed to permit less under-the-hood data collection. Android OS often allows apps to request rich data from users without accompanying warnings about how the data might be used.

    https://www.wsj.com/articles/who-has-more-of-your-personal-data-than-facebook-try-google-1524398401?ns=prod/accounts-wsj

  • Advanced Hackers Infect X-Ray Machines In Healthcare Espionage

    The hacker group, dubbed Orangeworm, is mainly targeting American healthcare organizations, though there are a number of victims worldwide, including in Asia and Europe. But rather than do anything destructive, Orangeworm is likely using leverage on those medical devices – designed to process and view images from X-Ray and MRI machines – to learn more about them as part of an ongoing corporate espionage operation, Symantec said.

    “Due to the fact that the attacks attempted to keep infections active for long periods of time on these devices, it’s more likely the group are interested in learning how these devices operate. We have not collected any evidence to suggest the attackers have planned to perform any sabotage type activities at this time,” said Alan Neville, Symantec researcher.

    https://www.forbes.com/sites/thomasbrewster/2018/04/23/x-ray-machines-taken-over-by-healthcare-hackers/#6d775f9844c8

  • Cracking the Crypto War

    That public and private key pair can be used to encrypt and decrypt a secret PIN that each user’s device automatically generates upon activation. Think of it as an extra password to unlock the device. This secret PIN is stored on the device, and it’s protected by encrypting it with the vendor’s public key. Once this is done, no one can decode it and use the PIN to unlock the phone except the vendor, using that highly protected private key.

    So, say the FBI needs the contents of an iPhone. First the Feds have to actually get the device and the proper court authorization to access the information it contains—Ozzie’s system does not allow the authorities to remotely snatch information. With the phone in its possession, they could then access, through the lock screen, the encrypted PIN and send it to Apple. Armed with that information, Apple would send highly trusted employees into the vault where they could use the private key to unlock the PIN. Apple could then send that no-longer-secret PIN back to the government, who can use it to unlock the device.

    https://www.wired.com/story/crypto-war-clear-encryption/

Software/SaaS

  • Google changes its messaging strategy again: Goodbye to Allo, double down on RCS

    The company told The Verge that it is “pausing” work on Allo, which was only launched as recently as September 2016, in order to put its resources into the adoption RCS (Rich Communication Services), a messaging standard that has the potential to tie together SMS and other chat apps. RCS isn’t new, and Google has been pushing it for some time, but now the company is rebranding it as “Chat” and putting all its efforts into getting operators on board.

    The new strategy will see almost the entire Allo team switch to Android Messages, according to The Verge.

    https://techcrunch.com/2018/04/19/google-changes-its-messaging-strategy-again-goodbye-to-allo-double-down-on-rcs/

    Chat is Google’s next big fix for Android’s messaging mess

    Google’s plan this time around is much more complicated than just launching a new messaging app. To get it started, it has had to corral more than 50 carriers and nearly a dozen manufacturers into adopting a new standard. It had to ensure that Chat would work the same, everywhere, and that it would actually have a decent set of features. Oh, and all those companies are fierce competitors who distrust each other and Google.

    It is as close to the hardest, most winding road that I can imagine for fixing the messaging mess on Android. It’s also probably one of the only roads Google had left to try.

    https://www.theverge.com/platform/amp/2018/4/19/17252486/google-android-messages-chat-rcs-anil-sabharwal-imessage-texting

  • Amazon’s new blockchain service competes with similar products from Oracle and IBM

    “Some of the people that I talk to see blockchains as the foundation of a new monetary system and a way to facilitate international payments. Others see blockchains as a distributed ledger and immutable data source that can be applied to logistics, supply chain, land registration, crowdfunding and other use cases,” he wrote. “Either way, it’s clear that there are a lot of intriguing possibilities and we are working to help our customers use this technology more effectively.

    AWS Blockchain Templates give AWS users working on blockchain apps a faster way to set up Ethereum or Hyperledger Fabric networks. Its launch comes six months after Oracle unveiled its cloud service built on the open-source Hyperledger Fabric project during Oracle OpenWorld and about a year after IBM announced its own Hyperledger-based blockchain-as-a-service offering.

    https://techcrunch.com/2018/04/22/amazons-new-blockchain-service-competes-with-similar-products-from-oracle-and-ibm/

Datacenter/Hardware

  • Why Facebook is following Apple and Google to build its own computer chips

    “Big tech companies realize that silicon and hardware is a key to differentiated experiences and services,” said Patrick Moorhead, president and principal analyst at Moor Insights & Strategy. “It’s kind of ironic, but hardware is driving software right now. The biggest reason is the simplification of software design tools and the incredible competitiveness of foundries like GlobalFoundries and TSMC” that actually manufacture the chips.

    https://siliconangle.com/blog/2018/04/19/report-facebook-wants-follow-apple-google-build-computer-chips-ai/

  • LG can’t meet Apple’s demand for iPhone OLED displays

    The Wall Street Journal reports that efforts to get LG Display’s OLED screens into the iPhone production line have hit manufacturing issues. Apple is reportedly divided on whether LG will be able to succeed as the second source of OLED displays for the iPhone.

    Analysts have been warning for months that Apple is in “urgent” need of finding another iPhone OLED supplier besides Samsung. Apple currently uses Samsung’s OLED displays for the company’s iPhone X model. The reliance on a single supplier means Samsung controls pricing on the displays that Apple is buying — and there’s no other alternative at the moment.

    https://www.theverge.com/2018/4/20/17261008/apple-iphone-x-lg-display-oled-supply-rumors
    This better explains why the company is looking to create their own screens moving forward.

  • Google is bleeding cash trying to take on Amazon in the smart home

    Because Nest was rolled back into Google proper earlier this year, Alphabet recast its quarterly earnings figures for 2017 to account for the fact that Nest revenues and losses would be moved from the “Other Bets” section of Alphabet’s business to the standard Google revenue line item. Comparing the differences in quarterly revenues and operating income, we can see that Nest made about $726 million in revenue, yet it ultimately contributed a $621 million loss to the “Other Bets” section throughout the year. In other words, Google spent more than half a billion dollars last year to establish Nest in sectors like security cameras, alarm systems, and video doorbells.

    https://www.theverge.com/2018/4/23/17272748/alphabet-google-q1-2018-earnings-nest-smart-home-amazon-competition

Other

  • IBM Could Go From Good To Great With This One Increasingly-Likely Change

    Forbes’ Peter Cohan is one of those doubters. He said in response to the company’s first quarter earnings, “Can IBM turn this around and become a company that persistently beats analyst expectations for revenue and profit growth and raises its forecasts? I don’t think so. That’s because it lacks a sustainable competitive advantage.” The reason for the missing competitive advantage? Cohan goes on to say “The right CEO can make a big difference — just look at how well Microsoft has done thanks to the successful cultural change managed by Satya Nadella. Until IBM gets a new one, it will lack a sustainable competitive advantage.”

    https://seekingalpha.com/article/4164267-ibm-go-good-great-one-increasingly-likely-change

  • How IBM quietly pushed out 20,000 older workers
  • Ajit Pai Is Intentionally Delaying His Net Neutrality Repeal and No One Knows Why

    The most popular theory is that ISPs and the FCC wanted more time to garner support for their effort to pass a bogus net neutrality law. A law they promise will “solve” the net neutrality feud once and for all, but whose real intention is to pre-empt tougher state laws, and block the FCC’s 2015 rules from being restored in the wake of a possible court loss.

    While it may seem like ISPs scored a major victory with last December’s vote at the FCC, that’s simply not the case. Given the FCC’s bizarre behavior during the repeal (ranging from ignoring comment fraud and identity theft during the public comment period to making up a DDOS attack), the repeal remains on some shaky legal ground courtesy of FCC ethical gaffes.

    https://motherboard.vice.com/en_us/article/wj793y/ajit-pai-net-neutrality-repeal-not-official-yet

Photo by Ryan Loughlin on Unsplash