Supplier Report: 4/5/2019

March went out with a fizzle when it came to major tech news, but there are a few trends to be aware of…

The EU continues to regulate complex technology with far reaching effects on European users and the entire global population. If critics are correct, the EU’s Copyright Directive Article 13 could split the internet in 3 (Europe, China, and the rest of the world).

Microsoft is showing more aggression against SalesForce via partnerships with Adobe and SAP to leverage LinkedIn to improve marketing integrations and to ensure customers have an easier time moving their cloud data around.

…And Google is getting back into robotics.

Acquisitions

  • Alibaba has acquired Teambition, a China-based Trello and Asana rival, in its enterprise push

    There were rumors of an acquisition circulating yesterday in Chinese media. Alibaba has now confirmed the acquisition to TechCrunch but declined to provide any other details.

    Teambition had raised about $17 million in funding since 2013, with investors including Tencent, Microsoft, IDG Capital and Gobi Ventures. Gobi also manages investments on behalf of Alibaba, and that might have been one route to how the two became acquainted. Alibaba’s last acquisition in enterprise was German big data startup Data Artisans for $103 million.

    https://techcrunch.com/2019/03/29/alibaba-has-acquired-teambition-a-china-based-trello-and-asana-rival-in-its-enterprise-push/

  • Daimler Trucks buys a majority stake in self-driving tech company Torc Robotics

    Daimler Trucks is the world’s largest truck manufacturer and a division of the larger Daimler Group.

    Torc, meanwhile, was founded in 2005. For most of its history, it specialized in self-driving software and sensors for commercial, industrial and military use, before recently shifting its attention to consumer vehicles. Earlier this year, it announced a partnership with public transportation company Transdev to create autonomous shuttles that connect people to transit.

    https://techcrunch.com/2019/03/29/daimler-acquires-torc-robotics/

Artificial Intelligence

  • Google is taking a cautious step back into the world of robotics

    The new operation is simply named Robotics at Google and will be led by AI scientist Vincent Vanhoucke. According to the Times, Google is focusing on using machine learning to teach robots how to grasp objects and navigate environments, but it’s far from clear where the company’s ambitions in this area lie.

    Although Google is a pioneer in AI research, its efforts in robotics have produced no commercial successes to date. The company’s last significant foray into the field started in 2013 with a program named “Replicant” led by Android co-founder Andy Rubin. An initial flurry of activity led to the purchase of six up-and-coming robotics companies, including Boston Dynamics and DARPA challenge winner Schaft.

    But these efforts stuttered, likely because the ambitious machines Google purchased were far away from commercialization

    https://www.theverge.com/2019/3/27/18283645/google-robotics-program-ai-manipulation-vincent-vanhoucke

Cloud

  • Sundar Pichai met with President Trump about Google’s ‘commitment to working with the US government’

    “I just met with Sundar Pichai, President of Google, who is obviously doing quite well,” President Trump tweeted after the meeting. “He stated strongly that he is totally committed to the U.S. Military, not the Chinese Military. [We] also discussed political fairness and various things that Google can do for our Country. Meeting ended very well!”

    Reached by The Verge, Google confirmed the meeting and its subject matter. “We were pleased to have productive conversations with the President about investing in the future of the American workforce, the growth of emerging technologies and our ongoing commitment to working with the U.S. government,” a Google representative said in a statement.

    https://www.theverge.com/2019/3/27/18284415/sundar-pichai-donald-trump-meeting-white-house

  • Microsoft, Adobe and SAP prepare to expand their Open Data Initiative

    The core principle of the alliance is that the customers own their data and they should be able to get as much value out of it as they can. Ideally, having this common data schema means that the customer doesn’t have to figure out ways to transform the data from these vendors and can simply flow all of it into a single data lake that then in turn feeds the various analytics services, machine learning systems and other tools that these companies offer.

    https://techcrunch.com/2019/03/27/microsoft-adobe-and-sap-prepare-to-expand-their-open-data-initiative/

Security

  • Android users’ security and privacy at risk from shadowy ecosystem of pre-installed software, study warns

    The researchers behind the paper, which has been published in preliminary form ahead of a future presentation at the IEEE Symposium on Security and Privacy, unearthed a complex ecosystem of players with a primary focus on advertising and “data-driven services” — which they argue the average Android user is unlikely to be unaware of (while also likely lacking the ability to uninstall/evade the baked in software’s privileged access to data and resources themselves).

    https://techcrunch.com/2019/03/25/android-users-security-and-privacy-at-risk-from-shadowy-ecosystem-of-pre-installed-software-study-warns/

  • How IBM is Rethinking its Data Protection Line-Up

    In this particular case, data protection, you now have two products:

    IBM Spectrum Data Protect: the good, old, TSM. While this product is one of those that have written Backup’s history and supports a myriad of Operating Systems and applications as well as backup, it is complex to operate and designed for large environments. Furthermore, it was designed well before the advent of hypervisors and modern applications, making it really tough to protect this environment efficiently.

    IBM Data Protect Plus: a new product designed from the ground up for modern environments, including hypervisors, NoSQL DBs and more. It has a very modern snapshot-based design that pairs nicely with VMWARE CBT (change block tracking) for example. It’s easy to use and can be adopted by IT organizations of all sizes.

    https://gigaom.com/2019/03/29/how-ibm-is-rethinking-its-data-protection-line-up/

Software/SaaS

  • Adobe, Microsoft team to take on Salesforce

    Adobe (ADBE) today announced an extension of its partnership with Microsoft and a new integration with LinkedIn that will accelerate account-based experiences (ABX) through new marketing solution integrations. Adobe and Microsoft are aligning key data sources to populate account-based profiles in Adobe Experience Cloud, including Marketo Engage and Microsoft Dynamics 365 for Sales. This will empower B2B marketers and sellers to easily identify, understand and engage B2B customer buying teams. This partnership will drive better orchestration, measurement and delivery of targeted content for a more personalized experience at both the individual and account level on key B2B platforms like LinkedIn.

    https://seekingalpha.com/news/3445688-adobe-microsoft-team-take-salesforce

  • Cisco CEO: ‘People Didn’t Think We Could Do’ Network Subscriptions

    Robbins says the company is “on track” to meet its pledge to have software and services account for 30 percent of its revenue over the next three years.

    Cisco’s focus on software and services is helping ePlus not only gain new customers, but go deeper with its existing client base, he said. It’s also making the renewal process a “nonevent.”

    “When you start selling software in a multi-year fashion, you don’t want to sell services only when it’s time to do the renewal,” he said. “The solutions we are selling today are taking a different course in terms of how we interact with customers to make them successful.”

    https://www.crn.com/news/networking/cisco-ceo-people-didn-t-think-we-could-do-network-subscriptions

Infrastructure/Hardware

  • Tech companies not ‘comfortable’ storing data in Australia, Microsoft warns

    This week the Australian tech industry renewed calls for further amendments to controversial encryption-cracking legislation at an industry forum in Sydney.

    Also on Wednesday, Labor’s spokesman on the digital economy, Ed Husic, told the StartupAus forum in Sydney he wished he could “turn back time”, expressing regret for Labor’s role in passing the bill and explaining the opposition feared it would be blamed for a terrorist attack over Christmas if it refused.

    In Canberra, Smith told the Committee for the Economic Development of Australia the law had not yet changed Microsoft’s operations in Australia, but the company was worried about the law’s “potential consequences”.

    https://www.theguardian.com/technology/2019/mar/27/tech-companies-not-comfortable-storing-data-in-australia-microsoft-warns

Other

  • Europe is splitting the internet into three

    Despite setbacks, the most controversial clauses of the Copyright Directive — Article 11 or the ‘link tax’ and Article 13 — have remained pretty much intact.

    Article 11 lets publishers charge platforms like Google News when they display snippets of news stories, while Article 13 (renamed Article 17 in the most recent draft of the legislation) gives sites like YouTube new duties to stop users from uploading copyrighted content.

    In both cases, critics say these well-intentioned laws will lead to trouble. Article 13, they say, will lead to the widespread introduction of “upload filter,” that will scan all user content uploaded to sites to remove copyrighted material. The law does not explicitly call for such filters, but critics say it will be an inevitability as sites seek to avoid penalties.

    https://www.theverge.com/2019/3/27/18283541/european-union-copyright-directive-internet-article-13

  • IBM purged “gray hairs” and “old heads” as it launched “Millennial Corps”: lawsuit

    “In 2015 and 2016, IBM doubled down on its efforts to replace its long-tenured, older employees with the younger Millennials it sought to recruit,” the suit alleged. “IBM made presentations to its senior executives calling for IBM to evaluate its long-term employees more harshly, to use those negative evaluations to justify selecting long-term employees for lay-off, and to replace these employees with ‘EPs’– IBM management short-hand for ‘early professionals.’”

    A 2016 presentation concerning one section of the company “specifically called for managers to exempt all ‘early professional hires’ from layoff, regardless of performance,” the suit claimed. “The long-serving, older employees were provided no such exemption.”

    https://www.denverpost.com/2019/03/28/ibm-ageism-lawsuit-millennial-corps/

  • Amazon To Create 800 New Jobs At Austin Tech Hub

    In a press release, Amazon said the jobs will be in the areas of software and hardware engineering, research science and cloud computing. Amazon said that since it opened its Austin Tech Hub, it has created more than 22,000 full-time jobs in Texas and has invested more than $7 billion in the state, including on infrastructure and compensation to workers.

    “In the last four years, we have created more than 1,000 jobs in Austin,” said Terry Leeper, general manager of Amazon’s Austin Tech Hub, in the press release. “With a strong pool of technical talent in Austin and a dynamic quality of life, we are excited to continue to expand and create more opportunity in this vibrant city.”

    https://www.pymnts.com/amazon/2019/austin-tech-hub-jobs-ecommerce/

Photo by Kido Dong on Unsplash

Supplier Report: 3/22/2019

The technology industry saw multiple outages last week. Apple, Facebook, and Google all suffered from seemingly unrelated issues bringing services down. Facebook experienced their biggest outage in years.  The combination of these events highlight that the internet and online services are still fragile.

Apple suffered additional bad news with a ruling that the company infringed on Qualcomm’s intellectual property and will owe Qualcomm $31M.

On the topic of owing money… the EU is looking to shove their hands in Google’s pockets one more time.

Acquisitions

  • Nvidia to Acquire Mellanox, Its Biggest Deal Ever at Roughly $7 Billion

    With Mellanox, Nvidia is buying a maker of Ethernet switches and adapters that connect computers to each other, wiring together networks where users can rapidly exchange information. The company is a major supplier of equipment that conforms to the so-called InfiniBand networking standard widely used in supercomputers.

    https://www.wsj.com/articles/nvidia-to-acquire-mellanox-for-about-7-billion-11552304615?ns=prod/accounts-wsj

  • Apple Acquires Machine Learning Startup in Boost for AI Group

    Laserlike was active for four years and concentrated on an “interest search engine” that could fetch news, video, and general Web content relative to each user. A key assumption was that people may want to know about things that don’t necessarily pop up in their usual sources, such as a car recall or an upcoming music festival. The app for the engine is no longer available.

    The Laserlike crew has reportedly joined Apple’s AI division, led by John Giannandrea, who was hired away from Google in 2018. His unit oversees the strategy for AI and Machine Learning across all Apple products, as well as the development of Core ML and Siri.

    https://appleinsider.com/articles/19/03/13/apple-confirms-buyout-of-machine-learning-startup-laserlike

Artificial Intelligence

  • DeepMind and Google: the battle to control artificial intelligence

    Google’s financial heft was attractive, yet, like many founders, Hassabis was reluctant to hand over the company he had nurtured. As part of the deal, DeepMind created an arrangement that would prevent Google from unilaterally taking control of the company’s intellectual property. In the year leading up to acquisition, according to a person familiar with the transaction, both parties signed a contract called the Ethics and Safety Review Agreement. The agreement, previously unreported, was drawn up by senior barristers in London.

    The Review Agreement puts control of DeepMind’s core AGI technology, whenever it may be created, in the hands of a governing panel known as the Ethics Board. Far from being a cosmetic concession from Google, the Ethics Board gives DeepMind solid legal backing to keep control of its most valuable and potentially most dangerous technology, according to the same source.

    https://www.1843magazine.com/features/deepmind-and-google-the-battle-to-control-artificial-intelligence

Cloud

  • Oracle’s Revenue Declines as It Struggles to Catch Up in Cloud Services

    Oracle has been slower than some of its rivals to develop cloud-computing technology—services customers rent on demand over the web. That has put competitors in a better position to win business as customers shift away from managing their own computing operations.

    The company expects to post revenue that is flat to down 2% in the current quarter, co-Chief Executive Safra Catz said during a conference call with analysts. Oracle shares, which fell a penny to $53.05 during regular trading Thursday, slid 3.9% after hours.

    Brad Reback, an analyst at Stifel Nicolaus & Co., said the current spending environment for information technology is the most robust in two decades. “The world is passing Oracle by,” he said.

    https://www.wsj.com/articles/oracles-revenue-declines-1-11552595788

Software/SaaS

  • Facebook, Instagram, and WhatsApp are still down for some users around the world

    According to DownDetector, it looks like the outages are mainly in New England; Texas; Seattle, Washington; parts of Latin America, including Peru; the UK; India; and the Philippines. Users have written in from Canada, Las Vegas, and Turkey to note outages there as well. We’ve reached out to Facebook and Instagram to learn more.

    Also

    It wasn’t until over 24 hours later that Facebook finally gave the all clear, attributing the downtime to a “server configuration change.” “We’ve now resolved the issues and our systems are recovering. We’re very sorry for the inconvenience and appreciate everyone’s patience,” the company said via Twitter.

    https://www.theverge.com/2019/3/13/18264092/facebook-instagram-down-partially-post-messages-profile-loading

  • Apple’s iCloud recovers after a four-hour outage

    The company’s system status dashboard was blanketed in yellow warning notes for more than four hours Thursday, indicating mass outages of its iCloud service.

    The page didn’t offer much in terms of detail as to why the services experienced problems, only saying that “some users are affected” and “users may be unable to access this service.” Apple didn’t say what caused the outage once iCloud recovered.

    https://techcrunch.com/2019/03/14/apples-icloud-is-having-an-outage-too/

  • And Google had an outage too…

    At Google, some services, including Gmail, were slowed or outright inaccessible from Tuesday evening into early Wednesday on the East Coast. Google blamed a “cascading failure” that began after its engineers made tweaks to an internal storage service.

    https://www.wsj.com/articles/facebook-and-instagram-suffer-lengthy-outages-11552539752

  • After the “adult content” ban, Tumblr users have ditched the platform as promised

    Tumblr’s global traffic in December clocked in at 521 million, but it had dropped to 370 million by February, web analytics firm SimilarWeb tells The Verge. Statista reports a similar trend in the number of unique visitors. By January 2019, only over 437 million visited Tumblr, compared to a high of 642 million visitors in July 2018.

    https://www.theverge.com/2019/3/14/18266013/tumblr-porn-ban-lost-users-down-traffic
    This is an example of a company putting a goal or objective over profit. They had to know that was going to happen.

  • Apple Music launches on Amazon Fire TV

    This change of pace from Apple’s standard walled-garden approach to services was most prevalent at CES 2019 where Apple said that iTunes will soon be available on Samsung smart TVs. In what was eventually dubbed a bug, Apple Music also appeared briefly on Google Home units but was never active before it was pulled offline.

    https://www.cnbc.com/2019/03/13/apple-music-for-amazon-fire-tv.html

Other

  • A Better Way to Break Up Big Tech

    The problem with applying a one-size-fits-four model to tech, as the industry analyst Ben Thompson has written, is that the large tech companies have different business models that pose different anti-competitive risks. The stranglehold that Google and Facebook have on the digital advertising market is different from the way Amazon muscles out e-commerce brands, which is different from the way Apple uses its App Store to force burdensome terms on developers.

    The possibility of unintended consequences means that tailoring regulations to address each of these problems is important. A law that banned Amazon from competing with third-party sellers on its platform could also cripple Chromebook laptops, or prevent iPhone users from getting access to their iTunes libraries.

    Rather than one giant package that crams everything together, a set of effective tech regulations would treat each problem discretely, and address each with surgical precision.

    https://www.nytimes.com/2019/03/13/technology/elizabeth-warren-tech-companies.html

  • Facebook’s Data Deals Are Under Criminal Investigation

    It is not clear when the grand jury inquiry, overseen by prosecutors with the United States attorney’s office for the Eastern District of New York, began or exactly what it is focusing on. Facebook was already facing scrutiny by the Federal Trade Commission and the Securities and Exchange Commission. And the Justice Department’s securities fraud unit began investigating it after reports that Cambridge Analytica, a political consulting firm, had improperly obtained the Facebook data of 87 million people and used it to build tools that helped President Trump’s election campaign.

    https://www.nytimes.com/2019/03/13/technology/facebook-data-deals-investigation.html

  • Apple dealt legal blow as jury awards Qualcomm $31 million

    The $31 million in damages — or $1.41 per infringing iPhone — is a drop in the bucket for Apple, a company that briefly became a $1 trillion company last year. But it marks an important victory for Qualcomm, burnishing its reputation as a mobile components innovator. The win also lends credibility to the notion that much of the company’s innovation is reflected in iPhones.

    https://www.cnet.com/news/apple-qualcomm-patent-infringement-verdict/

  • Google faces third EU antitrust fine next week: source

    Alphabet unit Google is likely to be hit with a third EU antitrust fine next week related to its AdSense advertising service, a person familiar with the matter said on Friday, with the sanction expected to be much smaller than previous fines.

    The AdSense case may not be end of Google’s EU antitrust woes.

    EU antitrust enforcers have asked Google’s rivals if it unfairly demotes local search competitors, according to a questionnaire seen by Reuters, a move which could lead to a fourth case.

    https://www.reuters.com/article/us-eu-google-antitrust-idUSKCN1QW1X0

Photo by Jeremy Bishop on Unsplash

Supplier Report: 10/19/2018

The Pentagon’s “Project Jedi” continues to make headlines this week as Microsoft employees published a letter asking the company to not bid on the work.

Jeff Bezos was interviewed the week and pondered why technology companies would decline an opportunity to work with the military as the “United States has a right to be defended”.

IBM was down 6% this week as cloud and analytics sales were flat. They did score a $240M AI contract with Lenovo, so it isn’t all bad?

Acquisitions

Artificial Intelligence

  • IBM Snags $240 Million AI Deal

    Lenovo is now looking to make its commercial PC business more efficient, and it’s turning to IBM’s artificial intelligence technology for help. IBM announced a multiyear deal with Lenovo on Thursday that aims to use AI to reduce customer service and field service costs. The $240 million pact, covering North America, Europe, the Middle East, Africa, and Latin America, is a win for IBM’s technology support services business.

    https://www.fool.com/investing/2018/10/18/ibm-snags-240-million-ai-deal.aspx

Cloud

  • Jeff Bezos Says Tech Companies Should Work With the Pentagon

    The Amazon founder seemed baffled by the wave of employee dissent that has torn through tech companies over the ethical implications of government contracts. Last week, for example, Google said it would not bid for a Pentagon cloud computing contract called Joint Enterprise Defense Initiative, or JEDI. Google earlier said it would not renew its contract on Project Maven.

    “It doesn’t make any sense to me,” Bezos said of tech companies pulling back from government work. “One of the jobs of the senior leadership team is to make the right decision, even when it’s unpopular.”

    https://www.wired.com/story/amazons-jeff-bezos-says-tech-companies-should-work-with-the-pentagon/

  • Microsoft workers urge company to pass on JEDI

    “Many Microsoft employees don’t believe that what we build should be used for waging war,” the group said in an open letter published Oct. 12 on Medium. The post came as the company itself signaled in a blog post that it was likely to bid on the Joint Enterprise Defense Infrastructure contract, a 10-year, single-source deal designed to provide cloud and advanced computing capabilities to the warfighter in the field.

    The Microsoft employee group is also seeking a set of “AI principles” modeled on the tenets of artificial intelligence put out by Google under pressure from its employees. Google has committed to not developing weaponized AI, as well as AI applications that conduct surveillance outside of “internationally accepted norms” and whose purpose “contravenes widely accepted principles of international law and human rights.”

    https://fcw.com/articles/2018/10/15/jedi-microsoft-dont-bid.aspx

Security

  • Apple, Google, Microsoft, and Mozilla come together to end TLS 1.0

    The impact of removing the old protocols shouldn’t be too substantial. All four companies cite usage figures for the old versions; Firefox sees the most TLS 1.0 and 1.1 usage (1.4 percent of all secure connections) while the other three vendors claim a figure below 1.0 percent. The current recommendation is that sites switch to TLS 1.2 (which happens to be the minimum required for HTTP 2.0) and offer only a limited, modern set of encryption algorithms and authentication schemes. TLS 1.3 was recently finalized, but it currently has little widespread adoption.

    https://arstechnica.com/gadgets/2018/10/browser-vendors-unite-to-end-support-for-20-year-old-tls-1-0/

  • Apple ‘Deeply Apologetic’ Over Account Hacks in China

    The Cupertino, Calif.-based company didn’t specify how many users were hit or how much money was stolen, nor did it offer details about how the hackers acquired the users’ Apple IDs and passwords. To help prevent unauthorized access to their accounts, Apple said, people should enable two-factor authentication.

    https://www.wsj.com/articles/apple-deeply-apologetic-over-account-hacks-in-china-1539690961?ns=prod/accounts-wsj

Software/SaaS

  • Why IBM’s Brief Growth Streak Just Stalled

    There had been some faint lights at the end of the tunnel here over the past couple of quarters, when they’ve been able to grow their quarterly revenues. That flipped this quarter. Their strategic imperatives, which is really their cloud business, their data analytics business, saw some stumbling blocks. Their growth slowed there. They saw a drop in new signings in that business. That stung a little bit. It’s been a very tough go for IBM. Their best business this quarter, and really a lot this year, is their legacy mainframe business. That will tend to tail off next year.

    https://www.fool.com/investing/2018/10/19/why-ibms-brief-growth-streak-just-stalled.aspx

Datacenter/Hardware

  • Inside the heart of an IBM Cloud Data Center

    Uh… Cool?
  • Dell says its gaming business is worth $3 billion

    According to Frank Azor (who helms the Alienware, Gaming, and XPS divisions at Dell), that number puts Dell’s gaming business at three times the size of its competitors, though Azor apparently didn’t specify which competitors he was referring to. Also unknown is how that number breaks down between the flagship Alienware line and Dell’s more recent, cheaper G Series gaming hardware. It’d be interesting to see how the company’s newer and more budget-friendly options contribute to the overall total.

    https://www.theverge.com/2018/10/18/17994618/dell-gaming-worth-3-billion-alienware

Other

  • Google’s CEO Defends Potential Return to China

    In his most extensive public remarks on the topic, Sundar Pichai said entering China in some ways aligns with the company’s mission to provide information to the world’s population, since one-fifth of those people reside in China. Even complying with China’s censors, he said, Google would be able to deliver search results to more than 99% of queries and in some cases deliver more helpful results than users currently get from local search engines.

    https://www.wsj.com/articles/googles-ceo-defends-potential-return-to-china-1539661027

  • Google could finally face serious competition for Android

    Until now, Google has locked phone and tablet makers into its ecosystem. If they wanted to include Google’s apps and services at all, they effectively had to include those apps and services on every consumer Android device that they made (with the exception of inside China, where Google doesn’t operate). That’s meant, for instance, that Samsung likely couldn’t release a variant of the Galaxy S9 that only includes the Galaxy Apps store and the Samsung browser and doesn’t include Chrome, Google Play, or Google search.

    Google said it is incorrect to say the original terms banned Android partners from making any phones or tablets without its apps. The terms only prevented them from selling non-certified versions of Android, the company says; devices that were “compatible” with its apps could still be shipped, even if its apps weren’t included. But it’s unclear whether there are any certified consumer Android devices that do not include Google’s apps.

    https://www.theverge.com/2018/10/18/17989052/google-android-fork-competition-europe-antitrust-commission-lawsuit

  • Netflix criticizes EU over ‘content quota’

    The EU, writes Netflix CEO Reed Hastings in the report, is “currently rewriting its audio visual rules” that will demand streaming services like Netflix “devote a minimum of 30 percent of their catalog to European works.” Netflix’s report acknowledged that catering to a specific audience encouraged more regional original programming for international audiences, but suggested that enforcing quotas on a streaming service could have unwanted negative effects.

    https://www.theverge.com/2018/10/16/17986086/netflix-third-earnings-report-european-union-content-quote-international

Photo by Tobias Cornille on Unsplash