Tag: ATT

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Supplier Report: 12/28/2018

Phone companies are taking over my report this week for a variety of reasons: T-mobile’s acquisition of Sprint is happening, AT&T is lying about 5G access (which is nothing new apparently), and Samsung is making chips for IBM.

And while these companies try to grow from their core businesses, Oracle is struggling with their big shift to cloud… but they have options.

Acquisitions

  • T-Mobile Takeover of Sprint Clears U.S. National Security Panel

    Neither Deutsche Telekom nor SoftBank is required to significantly change its own business or operations as a result of Cfius’s demands, according to the terms of the merger. Any potential changes are limited to T-Mobile, Sprint and their respective subsidiaries, deal documents show.

    Still, the global campaign by the other U.S. national security officials outside of Cfius was bearing some fruit. Deutsche Telekom on Friday said it was reviewing its procurement strategy for vendor equipment given “the global discussion about the security of network elements from Chinese manufacturers.” SoftBank last week made similar comments about its network in Japan.

    https://www.wsj.com/articles/t-mobile-takeover-of-sprint-clears-u-s-national-security-panel-11545076651

Artificial Intelligence

  • This Health Startup Won Big Government Deals—But Inside, Doctors Flagged Problems

    To prove their point, the doctors had spent about a day carrying out an audit on their own initiative, according to one current and one former staff member, who asked not to be named for fear of legal repercussions. They found that around 10% to 15% of the chatbot’s 100 most frequently suggested outcomes, such as a chest infection, either missed warning signs of a more serious condition like cancer or sepsis or were just flat-out wrong, according to one insider. The clinicians had gone directly to Parsa that Friday in the hope of stalling the new release. They made their case, and after some negotiation he agreed to delay the rollout.

    But the doctors were still troubled. Interviews with current and former Babylon staff and outside doctors reveal broad concerns that the company has rushed to deploy software that has not been carefully vetted, then exaggerated its effectiveness.

    https://www.forbes.com/sites/parmyolson/2018/12/17/this-health-startup-won-big-government-dealsbut-inside-doctors-flagged-problems/#724a98c2eabb

Cloud

  • Oracle Revenue Flat as Push to Bolster Cloud Business Continues

    Oracle officials sought to reassure investors about the cloud business during a Monday conference call with analysts, highlighting strong software-as-a-service bookings in the latest period and Oracle’s competitive edge from its autonomous database.

    “We need more than just a great database,” said Larry Ellison, the company’s co-founder, chairman and chief technology officer. “We also need first-class infrastructure to run the database on, and we know finally have that.”

    Overall, Oracle reported second-quarter profit rose 5% to $2.33 billion, or 61 cents a share. Excluding stock-based compensation and other items, profit rose to 80 cents a share from 69 cents a share.

    https://www.wsj.com/articles/oracle-revenue-flat-as-push-to-bolster-cloud-business-continues-11545084073

Security

  • China appears to have breached HPE and IBM, hacked into clients’ computers

    The attacks were part of a Chinese campaign known as Cloudhopper, which the United States and Britain on Thursday said infected technology service providers in order to steal secrets from their clients.

    While cybersecurity firms and government agencies have issued multiple warnings about the Cloudhopper threat since 2017, they have not disclosed the identity of technology companies whose networks were compromised.

    https://www.businessinsider.com/china-hacked-hpe-and-ibm-and-then-went-after-their-clients-reports-2018-12
    IBM says no evidence that ‘sensitive’ data was hacked by China

    “IBM has been aware of the reported attacks and already has taken extensive counter-measures worldwide as part of our continuous efforts to protect the company and our clients against constantly evolving threats,” Ed Barbini, vice-president for external relations and spokesman for New York-headquartered IBM, said in a text message.

    “We take responsible stewardship of client data very seriously, and have no evidence that sensitive IBM or client data has been compromised by this threat,” stated Mr Barbini.

    https://www.thenational.ae/business/technology/ibm-says-no-evidence-that-sensitive-data-was-hacked-by-china-1.804980

Software/SaaS

  • There’s ‘no way’ customers would migrate from Oracle to Amazon database software, Ellison says

    Amazon made its database technology available on the cloud long before Oracle did, Ellison said, but now Oracle is making its database technology readily available to customers in the cloud. The move lessens the chance customers will opt to move off Oracle technology. Such migrations are “just incredibly expensive and complicated and you’ve got to be willing to give up tons of reliability, tons of security, tons of performance to go ahead and do it,” Ellison said.

    https://www.ciodive.com/news/theres-no-way-customers-would-migrate-from-oracle-to-amazon-database-sof/544639/

  • Red Hat Flat as IBM’s $34B Purchase Nears

    Red Hat’s total revenues increased 13.2 percent year over year to $847 million for the third quarter of its fiscal 2019. That was lower than the 21.5 percent surge the company posted for the same quarter last year, and just shy of forecasts.

    The company closed 100 deals during the quarter valued in excess of $1 million. Red Hat CFO Eric Shander added that, “Strong renewals of our largest deals also helped drive these results with all of our top 25 deals renewing at an upsell rate above 120 percent.”

    Red Hat CEO and President Jim Whitehurst said that the company added more than 100 new customers to both its OpenShift and Ansible platforms during the quarter. OpenShift is Red Hat’s Kubernetes-focused enterprise container product while Ansible is its DevOps automation platform.

    https://www.sdxcentral.com/articles/news/red-hat-flat-as-ibms-34b-purchase-nears/2018/12/

Datacenter/Hardware

  • Samsung to Manufacture IBM’s 7nm Power CPUs

    IBM’s announcement noted that it has had a strong alliance in developing new process technologies with Samsung for the past 15 years. Back in 2015, IBM announced that its IBM Research Alliance, which includes Samsung, was able to produce the first 7nm EUV test chip. IBM will soon be able to take advantage of this node, too, although it doesn’t look like it will be among the first to use it.

    “This collaboration is an important milestone for Samsung’s foundry business as it signifies confidence in Samsung’s cutting-edge high performance EUV process technology,” Ryan Lee, Vice President of Foundry Marketing at Samsung Electronics, said in a statement.

    https://www.tomshardware.com/news/samsung-ibm-7nm-power-cpu-hpc,38278.html

Other

  • AT&T will put a fake 5G logo on its 4G LTE phones

    According to FierceWireless, AT&T will display an icon reading “5G E” on newer phones that are connected to LTE in markets where the carrier has deployed a handful of speed boosting — but still definitively 4G — technologies. The “E,” displayed smaller than the rest of the logo, refers to “5G Evolution,” the carrier’s term for networks that aren’t quite 5G but are still faster than traditional LTE.

    If this sounds sadly familiar, it’s because AT&T pulled this exact same stunt during the transition to LTE. The company rolled out a speed-boosting 3G tech called HSPA+, then got all of its phone partners — even Apple! — to show a “4G” logo when on that kind of connection.

    https://www.theverge.com/2018/12/21/18151764/att-5g-evolution-logo-rollout-fake-network

Photo by Humphrey Muleba on Unsplash

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Supplier Report: 8/10/2018

Big mergers seems to be getting push back. The AT&T acquisition of Time-Warner is still under scrutiny (as is the Judge that approved it) and the Sinclair acquisition of Tribune was officially shut down. Elon Musk also might be over running a publicly traded company and is thinking about taking Telsa private.

In other news, IBM is still struggling with Watson and bots might pick your veggies in the near future.

Acquisitions

  • AT&T Not Out of the Legal Woods Yet

    In the original case, the government argued that AT&T would be able to dictate higher carriage fees to competing distributors by threatening to withhold its cable networks from rival pay-TV providers, leading to higher prices for consumers. Judge Leon concluded that the facts didn’t uphold that. Antitrust experts say the government is likely to argue that the judge defined the market too loosely, allowing AT&T’s argument that its competition includes tech firms like Netflix , Facebook and Amazon.

    https://www.wsj.com/articles/at-t-not-out-of-the-legal-woods-yet-1533549600
    DOJ’s Behind-the-Scenes Struggles With Judge in AT&T Case

    Jeffrey Jacobovitz, an antitrust lawyer with Arnall Golden Gregory LLP who isn’t connected with the case, said judges have their own styles for administering trials, though sidebar conferences generally happen more in jury trials, so jurors won’t be influenced. There was no jury in the AT&T trial.

    “It’s unusual for a judge to have voluminous sidebars when it’s the judge resolving the ultimate issues,” Mr. Jacobovitz said.

    https://www.wsj.com/articles/dojs-behind-the-scenes-struggles-with-judge-in-at-t-case-1533682305

  • Sinclair’s Bid to Monopolize Local TV News Is Officially Dead

    Said behavior included what critics say were “sham” divestment deals, where Sinclair attempted to offload some stations to companies it still controlled in a bid to pretend the deal would fall within media ownership limits. Currently, the law states no one broadcaster can reach more than 38% of households (Sinclair would have reached 72% had the deal been approved).

    Sinclair’s efforts were so brazen, they forced even the historically mega-industry-friendly FCC chief Ajit Pai to shovel the deal off to an administrative law judge, a move traditionally seen as a death knell for such megadeals.

    https://motherboard.vice.com/en_us/article/8xbk5p/sinclairs-bid-to-monopolize-local-tv-news-is-officially-dead

  • Elon Musk is seriously considering taking Tesla private

    “The reason for doing this is all about creating the environment for Tesla to operate best,” Musk began. Being a public company means being subjected to wild swings in stock prices (it even spiked earlier today after his tweet talking about taking the company private), and such volatility can be a “major distraction” for both Tesla’s workforce and shareholders. It’s the latter Musk seems to want to mute by going private, as he lamented the pressure that putting out quarterly reports (which are mandated by law for public companies) puts on the company to make decisions that will look better in the short term but not serve Tesla best in the long run. He also noted that going private would avoid stock shorting attempts to harm the company.

    https://www.engadget.com/2018/08/07/elon-musk-admits-want-take-tesla-private/

Artificial Intelligence

  • Employees at Google, Amazon and Microsoft Have Threatened to Walk Off the Job Over the Use of AI

    There is certainly a lot to worry about. Widespread use of facial-recognition technology by law enforcement can spell the end of speech, association and privacy rights (just think about the ability to identify, catalog and store thousands of facial images from a boisterous political rally). As O’Neill reminds us in her book, the algorithms employed in large chain store hiring processes and credit worthiness decision are opaque and lack self-correction mechanisms. They give off an air of objectivity and authority while encoding the prejudices of the people who programmed them. Weapons systems combining face recognition and social-media access can pick off opponents more efficiently than the most ruthless assassin. The images of swarm-drone warfare in Slaughterbots are the stuff of nightmares.

    https://nationalinterest.org/blog/buzz/employees-google-amazon-and-microsoft-have-threatened-walk-job-over-use-ai-27962

  • Your vegetables are going to be picked by robots sooner than you think

    Root AI is focused on the 2.3 million square feet of indoor farms that currently exist in the world and is hoping to expand as the number of farms cultivating crops indoors increases. Some estimates from analysis firms like Agrilyst put the planned expansions in indoor farming at around 22 million square feet (much of that in the U.S.).

    While that only amounts to roughly 505 acres of land — a fraction of the 900 million acres of farmland that’s currently cultivated in the U.S. — those indoor farms offer huge yield advantages over traditional farms with a much lower footprint in terms of resources used. The average yield per acre in indoor farms for vine crops like tomatoes, and leafy greens, is over ten times higher than outdoor farms.

    https://techcrunch.com/2018/08/08/your-vegetables-are-going-to-be-picked-by-robots-sooner-than-you-think/

  • IBM Has a Watson Dilemma

    Recommending personal medical treatment is a taller order. The software needs to be trained with data on what has worked in the past, including details on patients’ medical histories and treatment outcomes. That information is often recorded in different formats and owned by different companies, and isn’t always complete or consistent.

    Moreover, human doctors still have a lot to learn about the science of disease, including cancer.

    Oncology won’t be “a great space for making [AI] products” until there’s better data about patients, spanning genetic, environmental, lifestyle and health information, said Bob Kocher, a medical doctor and partner at venture-capital firm Venrock in Palo Alto, Calif. In the near term, most of the benefits from AI in the health-care field will come in administrative tasks such as billing, he added.

    https://www.wsj.com/articles/ibm-bet-billions-that-watson-could-improve-cancer-treatment-it-hasnt-worked-1533961147

Cloud

  • AWS error exposed GoDaddy business secrets

    The information involved in the security breach appeared to describe GoDaddy’s architecture, as well as “high-level configuration information for tens of thousands of systems and pricing options for running those systems in Amazon AWS, including the discounts offered under different scenarios,” according to UpGuard.

    Configuration files for hostnames, operating systems, workloads, AWS regions, memory, CPU specifications, and more were included in the exposed cache, which described at least 24,000 systems.

    “Essentially, this data mapped a very large scale AWS cloud infrastructure deployment, with 41 different columns on individual systems, as well as summarized and modeled data on totals, averages, and other calculated fields,” the cybersecurity firm said.

    https://www.zdnet.com/article/aws-error-exposed-godaddy-server-secrets/

  • DXC Technology and AWS join forces for new integration practice

    DXC Technology and Amazon Web Services (AWS) are joining forces to build a new integrated practice focused on delivering IT migration, application transformation and industry-specific cloud services.

    The multibillion-dollar DXC – AWS Integrated Practice is part of a multi-year, global agreement that also encompasses joint development, marketing, sales, and delivery of AWS solutions. Specifically, these services include managed security and compliance services for AWS; dedicated VMware Cloud on AWS migration solutions and analytics and application services on AWS.

    https://sg.channelasia.tech/article/644922/dxc-technology-aws-join-forces-new-integration-practice/?fp=2&fpid=1

Security

  • iPhone supplier TSMC shut down factories after virus attack

    TSMC is the largest semiconductor manufacturer in the world, and supplies components for companies like ADM, Apple, Nvidia, and Qualcomm. The company told Bloomberg that the virus infected a “number of its fabrication tools,” but that the “degree of infection varies” from factory to factory. Several have resumed their operations, but others won’t come back online until tomorrow. The company indicated that its factories weren’t infected by a hacker.

    https://www.theverge.com/2018/8/4/17651448/iphone-supplier-taiwan-semiconductor-manufacturing-co-tsmc-virus-shut-down

Software/SaaS

  • Oracle introduces autonomous transaction processing database – pounds on AWS

    We’re the easiest database in the world to use. There’s nothing to learn, there’s nothing to do. It’s much much less labor involved so it’s much, much lower in cost. It’s truly elastic because you only pay for the infrastructure that you use. So when the application is not running then Oracle deactivates servers – it’s called a serverless system. And if you’re at a busy time then it will automatically add servers while the system is is still running.

    https://diginomica.com/2018/08/07/oracle-introduces-autonomous-transaction-processing-database-pounds-on-aws/

  • SAP Ariba Named a Leader in Gartner 2018 Magic Quadrant for Strategic

    SAP Ariba today announced it has been positioned in the Leaders quadrant of the Gartner 2018 Magic Quadrant for Strategic Sourcing Application Suites. (Gartner, Inc. Magic Quadrant for Strategic Sourcing Application Suites, Magnus Bergfors, Patrick M. Connaughton, et al., August 1, 2018). In May, SAP Ariba was also recognized in the Gartner 2018 Magic Quadrant for Procure-to-Pay Suites alongside SAP Fieldglass.

    https://www.businesswire.com/news/home/20180806005442/en/SAP-Ariba-Named-Leader-Gartner-2018-Magic

  • Salesforce Promotes Keith Block to Co-CEO

    Mr. Block, a former Oracle Corp. executive who joined Salesforce in 2013 as vice chairman and president, now will report directly to Salesforce’s board of directors. Mr. Benioff, who will go from being sole CEO to co-CEO, will continue leading the company’s “vision and innovation in areas including technology, marketing, stakeholder engagement and culture,” while Mr. Block will run the company’s “growth strategy, execution and operations,” Salesforce said.

    https://www.wsj.com/articles/salesforce-promotes-keith-block-to-co-ceo-1533704207

Datacenter/Hardware

  • Samsung is still trying to make DeX happen

    The idea of a pocketable laptop-like machine has its merits, and in theory, DeX is promising. It’s the combination of a small accessory for the Galaxy S8, Note 8 and S9 with a software mode (like on the Tab S4) that provides a faux desktop system. To minimize the number of loose accessories you have to carry around, Samsung introduced HDMI compatibility on the Note 9, so you can plug it into any supported display with an HDMI to USB-C converter and use the DeX software to immediately get to work. You can leave the converter cable on your desk or attached to the screen, so all you need to bring is your phone. Neat.

    https://www.engadget.com/2018/08/10/samsung-dex-success-outside-mainstream/
    I am all about this type of technology. It needs to happen and corporations should get behind it.

Other

  • The greedy ways Apple got to $1 trillion

    We still turn to Apple because it makes the best core products. But the edges of the customer experience have frayed like the wires of a Lightning cable. The key to Apple’s fortune is obviously selling high margin iPhones, not these ways it nickels and dimes us. But the company has an opportunity to raise its standards after this milestone, and win back the faith that could push it to a $2 trillion market cap.

    https://techcrunch.com/2018/08/04/the-greedy-ways-apple-got-to-1-trillion/

Photo by Johannes Plenio on Unsplash

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Supplier Report: 7/13/2018

Amazon Networking: Joey Lombardi: The Source

Amazon is sending computer networking technology stocks into a dive with rumors they are getting into the router business.  Can the “eater of worlds” break into a market with low margins, demanding customers, and ever-present threat of hacks and security issues – and maintain customer satisfaction?

Amazon does control half of all online sales in the US… HALF. So they do know a thing or two about network traffic optimization.

IBM is finding that big data breaches cost corporations on average about $3.5M per event. Better make sure those routers are updated.

Acquisitions

  • Broadcom acquires CA Technologies for $18.9B in cash

    Broadcom, the massive semiconductor supplier you may remember from its failed attempt to acquire Qualcomm, today announced that it has reached a definitive agreement with CA Technologies, a major IT management software and solutions provider. The price of the acquisition is $18.9 billion in cash. CA’s shareholders will receive $44.50 per share, a 20 percent premium over the closing price of the company’s stock today.

    https://techcrunch.com/2018/07/11/broadcom-acquires-ca-technologies-for-18-9b-in-cash/

  • The Department of Justice isn’t done fighting the AT&T-Time Warner merger

    “The Court’s decision could hardly have been more thorough, fact-based, and well-reasoned,” said AT&T General Counsel David McAtee in a statement. “While the losing party in litigation always has the right to appeal if it wishes, we are surprised that the DOJ has chosen to do so under these circumstances. We are ready to defend the Court’s decision at the D.C. Circuit Court of Appeals.”

    https://techcrunch.com/2018/07/12/doj-appeals-att-time-warner/

  • AT&T acquires threat intelligence company AlienVault

    AT&T has announced plans to acquire cybersecurity company AlienVault. Terms of the deal were not disclosed.

    Founded in 2007, AlienVault offers a number of tools for detecting and responding to security threats through its Unified Security Management (USM) platform, while its Open Threat Exchange (OTX) platform serves as an online community where security professionals and researchers can share their latest findings and threat data.

    https://venturebeat.com/2018/07/10/att-acquires-threat-intelligence-company-alienvault/

  • Intel To Acquire eASIC: Lower Cost ASICs in FPGA Design Time

    Intel is also announcing that it will acquire a company called eASIC which develops FPGA-like design tools to roll out ‘structured ASICs’. These structured ASICs an intermediary between a full FPGA and a full ASIC that allow for a quick roll out time and cheaper production cost. Technically Intel has been using eASIC technology since at least 2015 in its custom Xeons, however today’s announcement means that the eASIC team will become part of Intel’s Programmable Solutions Group (PSG). The deal is expected to close within the next month.

    https://www.anandtech.com/show/13075/intel-acquires-easic-lower-cost-asics-in-fpga-design-time

Artificial Intelligence

  • Google Is Reportedly Looking to Take Over Call Centers With Its Duplex AI Assistant

    A report from The Information suggests Google may be making a play to find other applications for its human-sounding assistant and has already started experimenting with ways to use Duplex to do with away roles currently filled by humans—a move that could have ramifications for millions of people.

    Citing a person familiar with Google’s plans, The Information reported the company is already in conversation with at least one potential customer that would like to integrate Duplex into its operations. That firm, an unnamed large insurance company, is reportedly interested in using the voice assistant to handle simple, straightforward customer service calls.

    https://gizmodo.com/google-is-reportedly-looking-to-take-over-call-centers-1827379911

Cloud

  • Oracle Set to Merge Its Cloud Business

    Oracle (ORCL) is gradually converting its cloud service types—SaaS1, PaaS2, and IaaS3—into a single standard data center. These data warehouses are supported by a bare-metal infrastructure managed by a single unified operations team.

    The consolidation of these cloud services may help offer Oracle huge economies of scale by sharing data warehouse costs across the three categories, expanding margins. By bringing all three categories under one roof, the company can also improve efficiency.

    https://marketrealist.com/2018/07/oracle-set-to-merge-its-cloud-business
    Amazon is all about networking equipment

Security

  • ‘Mega’ Data Breaches Cost Companies a Staggering Fortune, IBM Study Finds

    According to the IBM study, while the average cost of a data breach globally hovers just under $4 million—a 6.4 percent increase over the past year—costs associated with so-called mega breaches (an Equifax or Target, for example) can reach into the hundreds of millions of dollars. The average cost of a breach involving 1 million records is estimated at around $40 million, while those involving 50 million records or more can skyrocket up to $350 million in damages.

    Of the 11 mega breaches examined by IBM, 10 were a result of criminal attacks.

    The average amount of time that passes before a major company notices a data breach is pretty atrocious. According to IBM, mega breaches typically go unnoticed for roughly a year.

    https://gizmodo.com/mega-data-breaches-cost-companies-a-staggering-fortune-1827510737

  • Microsoft urges lawmakers to regulate facial recognition technology

    The company, one of the key makers of software capable of recognizing individual faces, said it would take steps to make those systems less prone to bias; develop new public principles to govern the technology; and move more deliberately to sell its software and expertise in the area. While Microsoft said the technology industry bears responsibility for its products, it argued that government action is also needed.

    “The only effective way to manage the use of technology by a government is for the government proactively to manage this use itself,” Microsoft’s president and chief legal officer, Brad Smith, said Friday in a blog post. “And if there are concerns about how a technology will be deployed more broadly across society, the only way to regulate this broad use is for the government to do so. This in fact is what we believe is needed today — a government initiative to regulate the proper use of facial recognition technology, informed first by a bipartisan and expert commission.”

    http://www.latimes.com/business/technology/la-fi-tn-facial-recognition-20180713-story.html

Software/SaaS

  • OpenText CEO opens up on organic growth ambitions

    But while M&A continues to be the leading growth driver for OpenText, opportunities for organic growth seem to be getting more attention at Canada’s largest software company, judging from announcements and discussions at the company’s Enterprise World 2018 event, being held this week in Toronto. And what does the company expect to be the three main sources of that growth? Cloud, AI and security.

    For a start, there was CEO Mark Barrenechea’s announcement in his Tuesday keynote of two new strands to the company’s cloud strategy: first, the release of the company’s new hybrid cloud platform OT2; and second, the news that its flagship EIM platform, OpenText Release 16, will now run on cloud infrastructure provided by Amazon Web Services, Google and Microsoft Azure, in addition to the existing options of on-premise or on the OpenText cloud as a managed service.

    https://diginomica.com/2018/07/12/opentext-ceo-opens-up-on-organic-growth-ambitions/

Datacenter/Hardware

  • Amazon Web Services Targets Cisco in Networking

    Networking company stocks fell off Friday following a report by The Information that Amazon Web Services is considering selling its own network switching devices.

    Cisco dropped 4 percent by the end of trading, representing a loss in stock value of roughly $8.5 billion. Juniper gave up more than 2 percent. Arista Networks dropped more than 4 percent, and F5 Networks dropped roughly a percent. Broadcom, which makes chips used in switching devices, was down more than 3 percent on the day following the report, extending a rough week for the stock.

    https://www.cnbc.com/2018/07/13/aws-network-devices-report-cisco-juniper-fall.html

Other

  • Amazon’s share of the US e-commerce market is now 49%, or 5% of all retail spend

    Amazon is set to clear $258.22 billion in US retail sales in 2018, according to eMarketer’s figures, which will work out to 49.1 percent of all online retail spend in the country, and 5 percent of all retail sales.

    Now, it is fast approaching a tipping point where more people will be spending money online with Amazon, than with all other retailers — combined. Amazon’s next-closest competitor, eBay, a very, very distant second at 6.6 percent, and Apple in third at 3.9 percent. Walmart, the world’s biggest retailer when counting physical stores, has yet to really hit the right note in e-commerce and comes in behind Apple with 3.7 percent of online sales in the US.

    https://techcrunch.com/2018/07/13/amazons-share-of-the-us-e-commerce-market-is-now-49-or-5-of-all-retail-spend/

  • Xiaomi’s Weak I.P.O. Raises Doubts About China’s Tech Boom

    But many investors view Xiaomi as still largely a hardware maker, not an internet company. It has promised fatter margins from selling internet services to its smartphone users, but those services accounted for less than 9 percent of last year’s revenue.

    “Xiaomi has been billing itself as a Chinese internet company, but they really are not quite yet a pure internet company,” said Dan Wang, a technology analyst at Gavekal Dragonomics.

    “Investors haven’t really bought into that story,” Mr. Wang added.

    https://www.nytimes.com/2018/07/08/business/xiaomi-hong-kong-ipo.html

  • IBM earnings: Security is growing fast, but is it enough money to matter?

    Through the first quarter, IBM’s security business had generated $3.4 billion in revenue in the previous 12 months, for growth of 66% year over year, the company told MarketWatch. In the first quarter, security brought in $800 million with growth of 65% from the year-ago period, compared with SI’s 15% growth overall.

    That is just a fraction of IBM’s $19.07 billion in reported revenue, however, and may not be enough to truly move the needle as other segments grow much slower. Analysts expect technology services and cloud-platform revenue to rise 2.6%, to $8.63 billion and cognitive-solutions revenue to rise 4.4% to $4.76 billion from the year-ago quarter. Technology services and cloud-platform includes IBM Cloud, formerly known as Bluemix, while cognitive solutions includes IBM’s Watson AI.

    https://www.marketwatch.com/story/ibm-earnings-security-is-growing-fast-but-is-it-enough-money-to-matter-2018-07-13?ns=prod/accounts-mw

Photo by Andrew Sharples on Unsplash

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Supplier Report: 6/22/2018

Source Report: Argumentative AI: Joey Lombardi: Jon Tyson

IBM was in the news this week for (mostly) all the right reasons… they bought a company and they developed an argumentative AI. Can this breakthrough actually bring in money for Big Blue?

Oracle reported decent earnings this quarter, but their stock still took a hit. In the following days, many articles highlighted that Oracle is combining certain sales metrics to hide the exact number of cloud sales happening (vs. legacy software).

Amazon shareholders are begging the company not to move forward with providing law enforcement facial recognition software that has been in development citing potential civil rights violations.

Acquisitions

  • IBM acquires Oniqua to bolster its Industrial IoT business

    Founded in 2000, Qniqua is a global innovator in Maintenance Repair and Operations (MRO) Inventory Optimization solutions and services focused on mining, oil & gas, transportation, utilities, manufacturing and other asset-intensive industries. Qniqua’s focus is on helping asset-intensive companies reduce costs and eliminate waste through advanced analytics and value services. It’s our pursuit and our passion, and one that every Oniqua employee is committed to delivering.

    https://techstartups.com/2018/06/15/ibm-acquires-oniqua-bolster-industrial-iot-business/

  • The court’s decision to let AT&T and Time Warner merge is ridiculously bad

    But neither Facebook nor Google owns the ultimate distribution layer of the consumer connection to the internet. They aren’t the world’s largest telecom company. Neither is Netflix or Amazon or any of the other companies AT&T and Time Warner are afraid of. (Yes, I know Google owns Google Fiber, but that has been more failure than success.)

    Tech companies might have vertically integrated the creation and production of content with consumer-facing apps and services, but they all depend on internet connections to reach their audiences. And those connections are increasingly wireless. AT&T and Time Warner aren’t trying to catch up to Netflix by merging; they’re trying to step ahead of them in line by marrying Time Warner’s content to AT&T’s network.

    https://www.theverge.com/2018/6/15/17468612/att-time-warner-acquisition-court-decision

  • AT&T in Talks to Acquire AppNexus for About $1.6 Billion

    Acquiring AppNexus would advance AT&T’s ambitions to build a robust advertising business. AppNexus operates one of the largest online ad exchanges, automated marketplaces that allow advertisers to buy space across thousands of websites, targeting their desired audiences.

    https://www.wsj.com/articles/at-t-in-talks-to-acquire-appnexus-for-about-1-6-billion-1529464400

  • Microsoft is buying AI startup, Bonsai

    The company specializes in reinforcement learning, a kind of trial and error approach to teach a system within the confines of a simulation. That learning can be used to train autonomous systems to complete specific tasks. Microsoft says the acquisition will serve to forward the kind of research the company has been pursuing in the field by leveraging its Azure cloud platform.

    https://techcrunch.com/2018/06/20/microsoft-is-buying-a-ai-startup-bonsai/

Artificial Intelligence

  • IBM Watson Health downsizes its work with hospitals

    IBM Watson Health leadership reportedly told employees June 13 it plans to refocus its business strategy, which includes cutting down on its work with hospital clients, according to STAT.

    Because of changes to the ACA, hospitals aren’t as willing to spend resources managing their pay-for-performance contracts, executives told employees, although they did not specify which changes to the law are affecting the shift in IBM’s strategy. STAT suggested the main driver could be some of the changes the Trump administration made to the law’s reimbursement models.

    https://www.beckershospitalreview.com/healthcare-information-technology/stat-ibm-watson-health-downsizes-its-work-with-hospitals.html

  • IBM Unveils System That ‘Debates’ With Humans

    IBM’s system was designed to debate about 100 topics, but these interactions are tightly constrained: a four-minute opening statement followed by a rebuttal to its opponent’s argument — and then a statement summing up its own viewpoint. It was not exactly Lincoln v. Douglas.

    Subsidized space exploration, the machine said during its opening statement, “inspires our children to pursue education and careers in science and technology and mathematics.”

    Noam Slonim, an IBM researcher who helped oversee the project, estimated that the technology could have a “meaningful” debate on those 100 topics 40 percent of the time. IBM chose the topic for the live debate before it began. In some cases, the machine’s lengthy speeches hinted at how it was stitching together its arguments — identifying relevant sentences and clauses and then combining them into a reasonably coherent, computerized thought.

    https://www.nytimes.com/2018/06/18/technology/ibm-debater-artificial-intelligence.html
    This is cute IBM… I want to read an article about IBM actually selling some of this awesome argumentative ai technology to a paying customer.  Time to get out of the lab! 

Cloud

  • Oracle’s Cloud Thickens

    The corporate software giant said late Tuesday that revenues from its cloud services businesses jumped 25% year over year to $1.7 billion for its fiscal fourth quarter that ended May 31. That was better than the 19% to 23% rise the company projected three months ago—a projection so disappointing that it took Oracle’s stock price down 8% in response. Cloud revenues are now significant, making up nearly 16% of the company’s total for the last fiscal year compared with just 8% two years ago. Overall revenue for the quarter rose a much more modest 3.3% to $11.3 billion, though it should also be noted that Oracle ended its fiscal year with its best annual growth rate in seven years.

    The problem is that the business that was the main engine of Oracle’s recent growth will be harder to analyze in the future. Oracle changed its reporting structure so that results from the closely watched cloud segment are now folded into the much larger unit that includes software license updates and support for Oracle’s older, legacy software business. That business grows at a much slower rate. The company says the change is necessitated by its new practice of selling software licenses that cover both traditional software and cloud offerings.

    https://www.wsj.com/articles/oracles-cloud-thickens-1529506558

Security

  • French media plan to meet with government over Google-GDPR concerns

    The impact of Google’s GDPR approach were felt across Europe as soon as it took effect. In France, volume demand dropped by as much as 50 percent for some independent ad tech vendors, while some publishers’ programmatic ad revenues dropped 70 percent, according to Gié. Google moved quickly to rectify the issue, with the result that several of the major exchanges such as AppNexus were reintegrated into Google’s ad-buying ecosystem in the days after May 25. Today, business is almost back to normal as more and more exchanges have been reintegrated, according to sources. But some vendors still aren’t on Google’s vendor whitelist, which has meant certain publishers’ programmatic ad revenues are suffering as a direct result, said Gié.

    https://digiday.com/media/french-media-plan-meet-government-concern-google-gdpr/

  • Amazon shareholders call for halt of facial recognition sales to police

    The shareholders, which include the Social Equity Group and Northwest Coalition for Responsible Investment, are joining groups such as the ACLU in efforts to stop the company from selling the service — pointing out the risks of mass surveillance.

    They warn about potential civil and human rights violations, and how Amazon’s involvement could have a negative impact on the company’s stock. The shareholders point to the recent scrutiny of Facebook (FB) over privacy and data as a cautionary tale.

    http://money.cnn.com/2018/06/18/technology/amazon-facial-recognition/index.html

Software/SaaS

  • Here’s why the one-size-fits-all relational database model is dead

    Seldom can one database fit the needs of multiple distinct use cases. The days of the one-size-fits-all monolithic database are behind us, and developers are now building highly distributed applications using a multitude of purpose-built databases. Developers are doing what they do best: breaking complex applications into smaller pieces and then picking the best tool to solve each problem. The best tool for a job usually differs by use case.

    https://www.techrepublic.com/article/amazon-heres-why-the-one-size-fits-all-relational-database-model-is-dead/

  • Adobe could be the next $10 billion software company

    Revenue was up across all major business lines, but as has been the norm, the vast majority comes from the company’s bread and butter, Creative Cloud, which houses the likes of Photoshop, InDesign and Dreamweaver, among others. In fact digital media, which includes Creative Cloud and Document Cloud accounted for $1.55 billion of the $2.2 billion in total revenue. The vast majority of that, $1.30 billion was from the creative side of the house with Document Cloud pulling in $243 million.

    Adobe has been mostly known as a creative tools company until recent years when it also moved into marketing, analytics and advertising. Recently it purchased Magento for $1.6 billion, giving it a commerce component to go with those other pieces. Clearly Adobe has set its sights on Salesforce, which also has a strong marketing component and is not coincidentally perhaps, the most recently crowned $10 billion software company.

    https://techcrunch.com/2018/06/15/adobe-could-be-the-next-10-billion-software-company/

Datacenter/Hardware

  • Chip Makers: We’ll End Up Paying Tariffs on Our Own Goods

    While the U.S. tariffs may impair Chinese companies that use semiconductors, among others, the fallout also will extend to U.S. businesses that participate in the complex supply chain of chip manufacturing, the Semiconductor Industry Association said.

    That is because most chips American companies import from China are designed in the U.S. The manufacturing of many components in those chips often starts in the U.S. as well, before they are shipped to China for assembly, testing and packaging.

    The tariffs will force American companies to pay duties on their own products, some of which were initially built in the U.S., the trade group said, adding that the imposition “fails to address the serious IP and industrial policy issues in China.”

    https://www.wsj.com/articles/chip-makers-well-end-up-paying-tariffs-on-our-own-goods-1529084158?ns=prod/accounts-wsj

Other

  • Microsoft Employees Protest Work With ICE, as Tech Industry Mobilizes Over Immigration

    “We believe that Microsoft must take an ethical stand, and put children and families above profits,” said the letter, which was addressed to the chief executive, Satya Nadella. The letter pointed to a $19.4 million contract that Microsoft has with ICE for processing data and artificial intelligence capabilities.

    Calling the separation of families “inhumane,” the employees added: “As the people who build the technologies that Microsoft profits from, we refuse to be complicit. We are part of a growing movement, comprised of many across the industry who recognize the grave responsibility that those creating powerful technology have to ensure what they build is used for good, and not for harm.”
    **
    The letter is part of a wave of tech workers mobilizing this week against the Trump administration’s new “zero tolerance” policy that refers for criminal prosecution all immigrants apprehended crossing the border without authorization. The policy has resulted in about 2,000 children being separated from their migrant parents, raising a bipartisan outcry.

    https://www.nytimes.com/2018/06/19/technology/tech-companies-immigration-border.html

  • A complete 5G standard is finally here

    “Two years ago, 5G was seen as a vision or even just a hype — with the closing of Rel-15, 3GPP has made 5G a reality within a very short time,” Georg Mayer, chairman of 3GPP CT, said in a statement. “The outcome is an amazing set of standards that will not only provide higher data rates and bandwidth to end customers but which is open and flexible enough to satisfy the communication needs of different industries — 5G will be the integration platform for heterogeneous businesses.”

    A number of companies are already gearing up for 5G including Verizon, Sprint, T-Mobile and AT&T. “This milestone will allow for more advanced testing using standards-compliant equipment and paves the way for our commercial 5G launch in a dozen cities later this year,” AT&T said in a statement.

    https://www.engadget.com/2018/06/15/complete-5g-standard-finally-here/

Photo by Jon Tyson on Unsplash

Posted on

Supplier Report: 6/15/2018

The DOJ said it would not block AT&T’s $85B acquisition of Time Warner on Thursday, within hours the acquisition was deemed complete. AT&T wasn’t the only company making moves… Workday bought TWO companies and data analytics companies Slack and Tableau both announced acquisitions this week.

Amazon was in the press for poor labor conditions in their Alexa supply chain. Foxconn workers making the devices have been found to be mistreated and underpaid. Amazon’s own audit of the situation confirms the report.

Oracle shares dropped due to a JP Morgan CIO report documenting a decrease of purchasing interest of Oracle products and services from IT executives.

Acquisitions

  • AT&T Completes Acquisition of Time Warner Inc.

    Under the terms of the merger, Time Warner Inc. shareholders received 1.4 shares of AT&T common stock, in addition to $53.75 in cash, per share of Time Warner Inc. As a result, AT&T issued 1,185M shares of common stock and paid $42.5B in cash. Including net debt from Time Warner, we now have $180.4B in net debt.

    https://www.businesswire.com/news/home/20180614006343/en/ATT-Completes-Acquisition-Time-Warner

  • Workday acquires Rallyteam to fuel machine learning efforts

    In this case, Workday appears to be acquiring the talent. It wants to take the Rallyteam team and incorporate it into the company’s engineering unit to beef up its machine learning efforts, while taking advantage of the expertise it has built up over the years connecting employees with interesting internal projects.

    “With Rallyteam, we gain incredible team members who created a talent mobility platform that uses machine learning to help companies better understand and optimize their workforces by matching a worker’s interests, skills and connections with relevant jobs, projects, tasks and people,” Workday’s Cristina Goldt wrote in a blog post announcing the acquisition.

    https://techcrunch.com/2018/06/08/workday-acquires-rallyteam-to-fuel-machine-learning-efforts/

  • Workday acquires financial modelling startup Adaptive Insights for $1.55B

    Workday, the cloud-based platform that offers HR and other back-office apps for businesses, is making an acquisition to expand its portfolio of services: It’s buying Adaptive Insights, a provider of cloud-based business planning and financial modelling tools, for $1.55 billion. The acquisition is notable because Adaptive Insights had filed for an IPO as recently as May 17.

    Workday says that the $1.55 billion price tag includes “the assumption of approximately $150 million in unvested equity issued to Adaptive Insights employees” related to that IPO. This deal is expected to close in Q3 of this year.

    https://techcrunch.com/2018/06/11/workday-acquires-financial-modelling-startup-adaptive-insights-for-1-55b/

  • Tableau gets AI shot in the arm with Empirical Systems acquisition

    The startup was born just two years ago from research on automated statistics at the MIT Probabilistic Computing Project. According to the company website, “Empirical is an analytics engine that automatically models structured, tabular data (such as spreadsheets, tables, or csv files) and allows those models to be queried to uncover statistical insights in data.”

    The product was still in private Beta when Tableau bought the company. It is delivered currently as an engine embedded inside other applications. That sounds like something that could slip in nicely into the Tableau analytics platform. What’s more, it will be bringing the engineering team on board for some AI knowledge, while taking advantage of this underlying advanced technology.

    https://techcrunch.com/2018/06/13/tableau-gets-ai-shot-in-the-arm-with-empirical-systems-acquisition/

  • Splunk to Acquire Software Problem-Solver VictorOps for $120 Million

    Big data-cruncher Splunk is acquiring VictorOps, a Boulder, Colo.-based startup whose tools help software developers collaborate and resolve engineering issues, for $120 million mostly in cash with some stock equity. The deal is expected to close before August.

    VictorOps’ tech brings together software engineers so they can overcome technical issues as they arise. The system generates notifications, pulls relevant parties into chat groups, presents pertinent documents, and keeps detailed records as teams work through coding problems.

    http://fortune.com/2018/06/11/splunk-acquire-software-startup-victorops/

Artificial Intelligence

  • Accenture wants to beat unfair AI with a professional toolkit

    “We’re seeing increasing focus on algorithmic bias, fairness. Just this past week we’ve had Singapore announce an AI ethics board. Korea announce an AI ethics board. In the US we already have industry creating different groups — such as The Partnership on AI. Google just released their ethical guidelines… So I think industry leaders, as well as non-tech companies, are looking for guidance. They are looking for standards and protocols and something to adhere to because they want to know that they are safe in creating products.

    “It’s not an easy task to think about these things. Not every organization or company has the resources to. So how might we better enable that to happen? Through good legislation, through enabling trust, communication. And also through developing these kinds of tools to help the process along.”

    https://techcrunch.com/2018/06/09/accenture-wants-to-beat-unfair-ai-with-a-professional-toolkit/

Cloud

  • Oracle shares drop after JP Morgan downgrades on lost business to Amazon and Microsoft

    Oracle’s “specific metrics in our large-scale CIO survey have arced over into negative territory, which makes us uncomfortable because the results of our CIO surveys over the years have been highly predictive,” analyst Mark Murphy said in a note to clients Thursday. “Oracle spending intentions have only looked lukewarm in our CIO survey work in the recent past, but the data takes a dive in the current survey. … In our discussions, CIOs have clarified that they are migrating Oracle databases to Microsoft SQL Server, Amazon databases and PostgreSQL.”

    https://www.cnbc.com/2018/06/14/oracle-shares-drop-after-jp-morgan-downgrades-on-lost-business-to-amazon-and-microsoft.html

Software/SaaS

  • Microsoft will ‘lose developers for a generation’ if it stuffs up GitHub, says future CEO

    “We are buying GitHub because we like GitHub; our plan is to continue to invest in the GitHub roadmap, and make GitHub better at being GitHub,” Friedman wrote.

    That means no ads in public repos, because Friedman said Sourceforge became “a swamp of banner ads and pop ups and delayed downloads to expose users to more ads”. He added that “GitHub’s clean interface and developer-centric approach can be seen in part as a reaction against Sourceforge” and suggested GitHub’s ascendency shows a no-ads approach has proven the correct approach.

    https://www.theregister.co.uk/2018/06/08/nat_friedman_github_ceo_elect_ama_session/

  • Yahoo Messenger is shutting down on July 17, redirects users to group messaging app Squirrel

    “There currently isn’t a replacement product available for Yahoo Messenger,” the company writes. “We’re constantly experimenting with new services and apps, one of which is an invite-only group messaging app called Yahoo Squirrel (currently in beta).” Squirrel is a group messaging app Yahoo started testing last month. You can request access to the beta here.

    https://techcrunch.com/2018/06/08/yahoo-messenger-is-shutting-down-on-july-17-redirects-users-to-group-messaging-app-squirrel/

Datacenter/Hardware

  • IBM and the DoE launch the world’s fastest supercomputer

    Summit, which has been in the works for a few years now, features 4,608 compute servers with two 22-core IBM Power9 chips and six Nvidia Tesla V100 GPUs each. In total, the system also features over 10 petabytes of memory. Given the presence of the Nvidia GPUs, it’s no surprise that the system is meant to be used for machine learning and deep learning applications, as well as the usual high performance computing workloads for research in energy and advanced materials that you would expect to happen at Oak Ridge.

    https://techcrunch.com/2018/06/08/ibms-new-summit-supercomputer-for-the-doe-delivers-200-petaflops/

  • Qualcomm Is Cutting Up to Half of Jobs in Data-Center Unit

    The company will eliminate 241 positions at its design center in Raleigh, North Carolina, and 43 in California, according to notices filed with those states. The total number of cuts, including those not covered by such notices, will represent a third to half of the server-chip unit’s employees, according to a person familiar with the process. The reduction comes on top of the previously announced elimination of about 1,500 workers across the company.

    https://www.bloomberg.com/news/articles/2018-06-14/qualcomm-is-said-to-cut-up-to-half-of-jobs-in-data-center-unit

Other

  • Verizon CEO to Retire, Succeeded by a Newcomer

    Verizon Communications Inc. VZ 0.35% named Hans Vestberg as its next chief executive, choosing a relative newcomer to run the wireless giant at a time when its industry is being reshaped by megadeals.

    Mr. Vestberg, who joined the company about a year ago and is its chief technology officer, will succeed longtime CEO Lowell McAdam on Aug. 1. Mr. McAdam will remain executive chairman until the end of the year and then become nonexecutive chairman.

    https://www.wsj.com/articles/verizon-ceo-to-retire-replaced-by-a-newcomer-1528455600?ns=prod/accounts-wsj

  • After report on ‘appalling’ conditions, Foxconn will investigate plant that makes Amazon devices

    Though regular workers were better compensated in terms of wages and benefits, China Labor Watch says both groups were subjected to long hours and low wages, with workers putting in more than 100 overtime hours during peak season, even though the legal limit is 36 hours, and some working consecutively for 14 days. Workers on average earned wages between 2000 to 3000 RMB ($312.12 to $468.19), significantly less than Hengyang’s monthly average wage of 4,647 RMB ($725.22), but often had their overtime hours as punishment for taking leave or having unexcused absences.

    The report also claimed that the factory had poor fire safety in its dormitories, lack of sufficiently protective equipment, verbally abusive managers and the “absence of a functioning labor union.”

    https://techcrunch.com/2018/06/10/after-report-on-appalling-conditions-foxconn-will-investigate-plant-that-makes-amazon-devices/
    Workers not paid legally by Amazon contractor in China

    Amazon disclosed that its own auditors visited the Foxconn factory in March and found that it had hired an illegally high number of agency workers and was not paying them properly for working overtime.

    Agency staff – known as dispatch workers in China – do not get sick pay or holiday pay and can be laid off without wages during lulls in production. China changed its labour laws in 2014 to limit their use to 10% of any workforce in an attempt to stop companies exploiting them to cut costs.

    https://www.theguardian.com/technology/2018/jun/09/amazon-contractor-foxconn-pay-workers-illegally

Photo by Michael Prewett on Unsplash