Big Tech’s Job Eliminations

Over the last six months, several technology companies announced job eliminations. Recently, Customer Relationship Management (CRM) companies were hit hard…

Pegasystems, a software company that specializes in CRM, announced a 4% reduction of its workforce. The company cited the need to “streamline its operations” and focus on key growth areas such as artificial intelligence and cloud computing.

CRM giant Salesforce announced the elimination of about 8,000 jobs worldwide as well as closing some offices. The reductions seemingly focused Tableau employees and there are rumors of more reductions in Salesforce sales teams.

Additional job eliminations in the last 6 months:

As companies reduce their workforce and thus their redundancy, how does that impact their ability to support their customers?

According to Jeffrey Pfeffer, a professor at the Stanford Graduate School of Business, layoffs don’t work to improve company performance. Academic studies have shown that time and time again, workplace reductions don’t do much to reduce costs:

  • Severance packages cost money
  • Layoffs increase unemployment insurance rates
  • Cuts reduce workplace morale and productivity as remaining employees are left wondering, “Could I be fired too?”

The trend of recent tech layoffs highlights the post-pandemic economic reality of labor shortages and the disappearance of cheap money. As organizations focus on streamlining their operations and redirecting resources towards key growth areas like automation, digital, and AI – layoffs and cost reductions will continue to be the reality.

Supplier Report: 5/22/2020

The walls are starting to close in on Google. Rumors of an anti-trust lawsuit have been brewing for months. William Barr and the Department of Justice have been making claims in the press this week that actions will happen soon and that States may join their case or start their own for other infractions.

Gartner produced reports that IT spending will be down $300B this year due to COVID. But not for some companies as Microsoft, Uber, and Facebook are continuing to purchase companies like Grubhub and Giphy.

Acquisitions/Investments

  • Microsoft acquires Metaswitch in telecom push

    The move shows Microsoft’s efforts to target a single industry through inorganic deals rather than building expertise and technology in house. These efforts could help Microsoft gain further adoption of its Azure public cloud, which challenges market leader Amazon Web Services.

    “The convergence of cloud and communication networks presents a unique opportunity for Microsoft to serve operators globally via continued investment in Azure, adding additional depth to our hyperscale cloud infrastructure with the specialized software required to run virtualized communication functions, applications and networks,” Yousef Khalidi, a Microsoft corporate vice president, wrote in a blog post.

    Metaswitch has a 5G product for handling network traffic that can run on public cloud infrastructure. Customers could rely on the company’s software atop cloud infrastructure rather than adding capacity in their own data centers to support additional network use at higher speeds.

    https://www.cnbc.com/2020/05/14/microsoft-acquires-metaswitch-in-telecom-push.html

  • Restaurants should fear an Uber-Grubhub merger

    Companies like Uber, which dispatch contracted drivers and cyclists to pick up and deliver food from local and chain restaurants, have faced a wave of new criticism during the pandemic over their substantial markups and the steep revenue cuts they take from restaurants. Consolidating Uber and Grubhub would narrow an already-narrowed field, after GrubHub acquired Seamless and Eat24 and DoorDash bought Caviar. Meanwhile, delivery fees have generally been on the rise, and with less competition there would presumably be less pressure on Uber to compete for dollars from hungry shoppers.

    If the deal comes through, it will likely attract scrutiny from progressive Democrats. At the end of April, Senator Elizabeth Warren of Massachusetts and Representative Alexandria Ocasio-Cortez of New York proposed the Pandemic Anti-Monopoly Act, a bill that would pause large mergers and acquisitions until “small businesses, workers, and consumers are no longer under severe financial distress.”

    https://www.fastcompany.com/90504454/restaurants-should-fear-an-uber-grubhub-merger

  • Facebook Buys Giphy, Will Make It Part of Instagram Operations

    Facebook said the graphics interchange format, or GIF, platform will be part of the company’s Instagram operations but didn’t disclose the terms of the deal. Facebook—which said its apps make up half of Giphy’s traffic—is going to “further integrate their GIF library into Instagram and our other apps.”

    Facebook also said Giphy will keep running its library of GIFs and digital stickers.

    News site Axios reported Facebook agreed to buy the GIF platform for around $400 million.

    https://www.wsj.com/articles/facebook-buys-giphy-will-make-it-part-of-instagram-operations-11589561384

Software/SaaS

  • Microsoft makes OneDrive multi-page scanning available to all for free

    With so many people now working from home, few of us have access to office equipment like printers and scanners. Scanning documents from home, or outside the office, should be easy. Microsoft OneDrive has long offered a free scanning feature from the OneDrive mobile app which lets you scan and digitize single documents, receipts and more. Up until now, scanning multiple pages and saving them as single document was a premium feature that required a Microsoft 365 subscription. Today we’re making multi-page scanning available for everyone using a OneDrive personal account.

    https://mspoweruser.com/microsoft-makes-onedrive-multi-page-scanning-available-to-all-for-free/

  • Chrome will start blocking resource-demanding ads in August

    Google has discovered that a small percentage of ads (0.3 percent) are using a disproportionate amount (27 percent) of the network data used by ads in Chrome. These resource-demanding ads can drain battery life, saturate already strained networks and cost money, Google wrote in a blog post. So beginning this summer, Google will cap the resources a display ad can use in Chrome in order to protect users’ batteries and data plans.

    Chrome will set a threshold at 4MB of network data, 15 seconds of CPU usage in any 30-second period or 60 seconds of total CPU usage. If an ad reaches its limit before a user interacts with it, the ad frame will navigate to an error page and inform the user that the ad has used too many resources.

    Google plans to experiment with the feature over the next several months and to introduce it near the end of August. This should give ad creators and tool providers time to adapt.

    https://www.engadget.com/google-chrome-block-resource-heavy-ads-190622725.html

Infrastructure/Hardware

  • Gartner Predicts IT Spending Will Plummet By $300 Billion In 2020 As CIOs Slash Budgets

    Gartner’s estimate is the latest in a series of predictions by research firms that have become more and more pessimistic as the crisis has deepened. Last month, Enterprise Technology Research (ETR), which regularly polls IT leaders about their spending intentions, came up with a forecast suggesting a drop of around 5% in global spend for 2020. In the latter part of March, the feedback ETR had been getting from executives suggested spending would be flat year-on-year.

    While some companies are cutting big IT projects altogether, others are ploughing ahead but delaying some elements of their plans to save money. During an earnings call in April, Hershey CEO Michele Buck revealed the confectionery giant has paused parts of a new enterprise resource planning (ERP) system. It plans to advance with finance and data work streams but will delay supply chain and order-to-cash ones—moves that will push out full implementation of the ERP system by a year or so. On the same call, Hershey’s CFO said the company’s capital spending would be between $400 million and $450 million in 2020 versus an estimate of $500 million it had released in January.

    https://www.forbes.com/sites/martingiles/2020/05/13/gartner-it-spending-will-plummet-in-2020-as-cios-slash-budgets/#7f41043711ca

  • U.S. Moves to Cut Off Chip Supplies to Huawei

    The restrictions stop foreign semiconductor manufacturers whose operations use U.S. software and technology from shipping products to Huawei without first getting a license from U.S. officials, essentially giving the U.S. Commerce Department a veto over the kinds of technology that Huawei can use.

    Under the new rules, the department can block the sale of semiconductors manufactured by Taiwan Semiconductor Manufacturing Co., for Huawei’s HiSilicon unit, which designs chips for the company, as well as chips and other software produced by manufacturing facilities in China and South Korea, which use American chip-making technology. The Commerce Department already had the ability to license software shipments from U.S.-based facilities.

    https://www.wsj.com/articles/u-s-moves-to-cut-off-chip-supplies-to-huawei-11589545335

Other

  • Justice Department, State Attorneys General Likely to Bring Antitrust Lawsuits Against Google

    Much of the states’ investigation has focused on Google’s online advertising business. The company owns the dominant tool at every link in the complex chain between online publishers and advertisers. The Justice Department likewise is making Google’s ad technology one of its points of emphasis. But it is also focusing more broadly on concerns that Google uses its dominant search business to stifle competition, people familiar with the matter said.

    Details about the Justice Department’s legal theories for a case against Google couldn’t be learned.

    Though the coronavirus pandemic has complicated work for the Justice Department, Attorney General William Barrhas devoted considerable resources to the Google probe and continues to treat it as a top priority. Mr. Barr told The Wall Street Journal in March that he wanted the Justice Department to make a final call this summer. “I’m hoping that we bring it to fruition early summer,” Mr. Barr said at the time. “And by fruition I mean, decision time.”

    https://www.wsj.com/articles/justice-department-state-attorneys-general-likely-to-bring-antitrust-lawsuits-against-google-11589573622

  • A seventh Amazon employee dies of COVID-19 as the company refuses to say how many are sick

    Amazon has instituted new safety measures, including temperature checks, face masks, and increased cleaning. “Our top concern is ensuring the health and safety of our employees, and we expect to invest approximately $4 billion from April to June on COVID-related initiatives to get products to customers and keep employees safe,” the company said in a statement. The company also says infection rates at its warehouses are at or below the rates in the communities where they are located.

    But workers at IND8 and elsewhere say cleaning has been uneven and conditions are often too crowded to allow for proper social distancing. Many worry that recent policy changes put them at greater risk. This month, Amazon reversed a policy it instituted at the onset of the pandemic that allowed workers to take unlimited time off without pay. (Amazon is set to end another coronavirus policy, an additional $2 per hour of hazard pay, on June 1st.) The leave policy had allowed workers who feared for their safety — and could afford to go without a paycheck — to stay home without being fired for overdrawing their quarterly allotment of 20 hours of unpaid time off. When the policy ended on May 1st, workers say their facilities became far more crowded.

    “Before we had the unlimited UPT [unpaid time off] so if people didn’t feel safe, they didn’t have to come to work,” said a worker at IND8. “When that went away, we went from having one hundred twenty five people back to four to five hundred people per shift. It’s really crowded.”

    https://www.theverge.com/2020/5/14/21259474/amazon-warehouse-worker-death-indiana

  • Eric Schmidt reportedly left Google in February

    Schmidt hasn’t had a leading role at Google or Alphabet for a while. He left Google’s CEO role in 2011, and bowed out as Alphabet’s executive chairman in 2017 before departing the company’s board in 2019. An exit may have been more of a formality, especially as Schmidt was said to have made $1 per year as an advisor.

    Still, it’s the end of an era. Schmidt ran Google during its rapid growth from a search startup to a tech colossus that branched out into smartphones, email and numerous other fields. Sergey Brin and Larry Page hired him to offer Google serious business credibility and leadership, and to that extent he succeeded.

    https://www.engadget.com/eric-schmidt-leaves-google-201819195.html

Supplier Report: 3/27/2020


Photo by Christopher Windus on Unsplash

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

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

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

Acquisitions/Investments

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Software/SaaS

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    Hell No… join Slack or get a Discord server.

Infrastructure/Hardware

  • YouTube joins Netflix in reducing video quality in Europe

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

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

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

Other

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

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

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

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

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

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

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

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

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

News You Can Use: 12/30/2019


Photo by Kate Stone Matheson on Unsplash

  • Google Culture War Escalates as Era of Transparency Wanes

    The extent of Google’s employee rebellion is hard to measure—the company has tried to portray it as the work of a handful of malcontents from the company’s junior ranks. Nor are the company’s message boards unilaterally supportive of revolt. “We want to focus on our jobs when we come into the workplace rather than deal with a new cycle of outrage every few days or vote on petitions for or against Google’s latest project,” wrote one employee on an internal message board viewed by Bloomberg News.

    Still, the company seems stuck in a cycle of escalation. Walker’s internal critics say his Nov. 14 email is part of a broader erosion of one of Google’s most distinctive traits—its extreme internal transparency. The fight also illustrates the lack of trust between Google’s leadership and some of its employees, according to interviews with over a dozen current and former employees, as well as internal messages shared with Bloomberg News on the condition it not publish the names of employees who participated.

    https://www.bloomberg.com/news/articles/2019-12-13/google-culture-war-escalates-as-era-of-transparency-wanes

  • Is Facebook dead to Gen Z?

    Edison Research’s Infinite Dial study from early 2019 showed that 62% of U.S. 12–34 year-olds are Facebook users, down from 67% in 2018 and 79% in 2017. This decrease is particularly notable as 35–54 and 55+ age group usage has been constant or even increased.

    There are many theories behind Facebook’s fall from grace among millennials and Gen Zers — an influx of older users that change the dynamics of the platform, competition from more mobile and visual-friendly platforms like Instagram and Snapchat, and the company’s privacy scandals are just a few.

    https://techcrunch.com/2019/12/12/is-facebook-dead-to-gen-z/

  • You’re Being Watched Right Now
  • She Argued Facebook Is a Monopoly. To Her Surprise, People Listened.

    Ms. Srinivasan spent a few months in cafes around her Connecticut home reading economic history, and mulling over her own misgivings about the evolution of the digital advertising market. One mystery nagged at her, she said: How could a company with Facebook Inc. FB -1.34% ’s checkered privacy record have obtained so much of its users’ personal data?

    Her conclusion was that rather than raising prices like an old-school monopolist, Facebook harmed consumers by charging them ever-increasing amounts of personal data to use its platform. Eventually she emailed an unsolicited article to the Berkeley Business Law Journal, which published it this year under the title, “The Antitrust Case Against Facebook.”

    Her argument has had unexpected resonance. In the past year Ms. Srinivasan has presented at the American Antitrust Institute’s annual conference and appeared at a private gathering of state attorneys general investigating Facebook. Now based in northern California, she is presenting her work at an international antitrust conference in Brussels this week.

    https://www.wsj.com/articles/yale-law-grads-hipster-antitrust-argument-against-facebook-findsmainstream-support-11575987274

  • Business Class Flying Is Under Attack

    One aim of the Green Deal is to make the price of transport “reflect the impact it has on the environment.” Accordingly, Europe will review aviation’s tax exemptions — kerosene isn’t taxed — and consider cutting the free allowances allocated to airlines under Europe’s emissions trading system.

    The airlines think they’re being unfairly maligned. They contribute about 2% of global emissions, a fraction of what cars and trucks produce. But unlike road transport, the aviation industry doesn’t have a convincing plan to decarbonize. Europe’s airlines are spending 170 billion euros ($189 billion) on new fuel-efficient aircraft, but these will still spew out carbon. Synthetic fuels are expensive and battery limitations mean emission-free commercial flights are years away.

    Aviation is typical of the trade-offs we’ll have to make to get to net-zero emissions. So far we’ve only done the easy stuff that doesn’t force people to give up much or pay more for cheap products and services. The airlines are lobbying for better air traffic management in Europe’s crowded skies, which would cut the amount of fuel used. But there’s only a certain amount of carbon we can keep emitting before things go from bad to catastrophic.

    https://www.washingtonpost.com/business/energy/business-class-flying-is-under-attack/2019/12/13/c563ae08-1d80-11ea-977a-15a6710ed6da_story.html

Supplier Report: 12/27/2019


Photo by Abbie Bernet on Unsplash

One holiday down, one more to go.

Security was a big theme this week. Philadelphia-favorite Wawa discovered a security breach in their payment systems going back to last March. The breach was plugged on December 12th (better check your credit card statements).

Meanwhile Facebook has agreed (under duress) to stop using the phone number you give for Two Factor Authentication to mine for data and suggest friends.

And finally… Foxconn continues to be a disaster in Wisconsin. They still haven’t committed to what type of factory they are building and Wisconsin (rightfully) is starting to push back on their tax rebate commitments. Why has it taken this long?

Acquisitions/Investments

  • Google buys game developer Typhoon Studios

    Google has been pretty vocal about its internal development efforts, including Stadia Studios led by former EA exec Jade Raymond. In an interview with Gamesindustry.biz, the exec detailed that Google was hoping to build out multiple first-party studios to release content on the platform.

    “We have a plan that includes building out a few different first-party studios, and also building up the publishing org to ship exclusive content created by indie devs and other external partners,” Raymond told the publication.

    https://techcrunch.com/2019/12/19/google-buys-game-developer-typhoon-studios/

Artificial Intelligence

  • Finland is making its online AI crash course free to the world

    There are already quite a few sites for people looking to learn the basics of AI, but Finland’s offering seems worth your time if you’re interested in such a thing. It’s nicely designed, offers short tests at the end of each section, and covers a range of topics from the philosophical implications of AI to technical subjects like Bayesian probability. It’s supposed to take about six weeks to finish, with each section taking between five and 10 hours.

    https://www.theverge.com/2019/12/18/21027840/online-course-basics-of-ai-finland-free-elements

    Link to the course:
    https://www.elementsofai.com/

Security/Privacy

  • Wawa hit with massive data breach, potentially affecting more than 850 locations, CEO says

    In a letter to customers Friday, chief executive Chris Gheysens said the company discovered malware capable of exposing card numbers, expiration dates and cardholder names at “potentially all Wawa in-store payment terminals and fuel dispensers” since March 4. Debit card PINs, credit card security codes and driver’s license information for verifying age-restricted purchases were not affected, he said.

    Gheysens said the convenience store chain is unaware of any unauthorized card use as a result of the breach, which was contained Dec. 12, two days after it was discovered. Wawa declined to tell The Washington Post how many customers or transactions were affected.

    “I want to reassure anyone impacted they will not be responsible for fraudulent charges related to this incident,” Gheysens said in a news release. “To all our friends and neighbors, I apologize deeply for this incident.”

    https://www.washingtonpost.com/business/2019/12/20/wawa-hit-with-massive-data-breach-potentially-affecting-all-locations-ceo-says/

  • Facebook will stop using 2FA tool to harvest phone numbers for friend suggestions

    Facebook says it will soon stop its practice of using phone numbers provided to the company as part of its two-factor authentication (2FA) security tool to power a friend suggestion feature, Reuters reported on Thursday. According to the report, Facebook was using phone numbers users gave it specifically to protect their accounts from unauthorized access to try and encourage them to add members of their address book to their friends list.

    The company says the change is part of its broader privacy overhaul in response to a $5 billion Federal Trade Commission settlement reached in July over Facebook’s privacy practices. As part of that settlement, Facebook was barred from using phone numbers gathered from 2FA requests for advertising. Today’s change is an extension of that. Although not explicitly demanded by the FTC, Facebook’s use of phone numbers has come under scrutiny by the company’s internal privacy review team, led by chief privacy officer Michel Protti.

    https://www.theverge.com/2019/12/19/21030068/facebook-friend-suggestions-2fa-security-phone-number-privacy-violation-ftc

  • U.S. Navy bans TikTok from government-issued mobile devices

    A bulletin issued by the Navy on Tuesday showed up on a Facebook page serving military members, saying users of government issued mobile devices who had TikTok and did not remove the app would be blocked from the Navy Marine Corps Intranet.

    The Navy would not describe in detail what dangers the app presents, but Pentagon spokesman Lieutenant Colonel Uriah Orland said in a statement the order was part of an effort to “address existing and emerging threats”.

    https://www.reuters.com/article/us-usa-tiktok-navy-idUSKBN1YO2HU

Software/SaaS

  • Facebook is building an operating system so it can ditch Android

    Facebook doesn’t want its hardware like Oculus or its augmented reality glasses to be at the mercy of Google because they rely on its Android operating system. That’s why Facebook has tasked Mark Lucovsky, a co-author of Microsoft’s Windows NT, with building the social network an operating system from scratch, according to The Information’s Alex Heath. To be clear, Facebook’s smartphone apps will remain available on Android.

    “We really want to make sure the next generation has space for us,” says Facebook’s VP of Hardware, Andrew ‘Boz’ Bosworth. “We don’t think we can trust the marketplace or competitors to ensure that’s the case. And so we’re gonna do it ourselves.”

    https://techcrunch.com/2019/12/19/facebook-operating-system/

Infrastructure/Hardware

  • IBM aims to replace lithium batteries with batteries made from seawater

    Traditional lithium-ion batteries need heavy metals such as cobalt, manganese, and nickel to be produced. These materials pose a sizeable risk to the environment as they need to be mined. Not only is the sourcing of these materials a danger to the environment, but they also pose risk to the workers mining them. Heavy metals such as these are also limited and with the rise of battery-powered devices, it may be soon that these materials eventually run out.

    It was due to all of these circumstances that IBM Research scientists looked for other alternatives to Lithium-ion batteries. They were soon able to create a battery that runs on three new completely different materials that can be extracted from seawater. As such, sourcing of these materials are less invasive and pose a much smaller risk to the destruction of the environment.

    This new battery uses a “cobalt and nickel-free cathode material, as well as a safe liquid electrolyte with a high flash point”. The combination of these two materials was found to reduce the battery’s flammability which is a present issue for lithium-ion batteries. It was also found to charge much faster than regular lithium-ion batteries with the ability to charge up to 80% in a mere 5 minutes. These two new benefits from IBM’s batteries could prove to be very significant in the creation of low cost, fast-charging, less flammable batteries for electric vehicles.

    https://geekspin.co/ibm-aims-to-replace-lithium-batteries-with-batteries-made-from-seawater/

Other

  • The Bezos ‘relentless’ strategy at Amazon has been on full display this week

    Amazon has been steadily building out its own delivery network as it seeks to wean itself off of third parties like FedEx, UPS or the U.S. Postal Service. Bloomberg reported Tuesday that Dave Clark, the Amazon executive in charge of logistics, decided to cut out FedEx Ground because it wasn’t performing up to Amazon’s standards. And even though the block on FedEx Ground is temporary during the holiday rush, the decision was made at the height of the shopping season.

    And it doesn’t hurt that Amazon was able to stick it to its future shipping and logistics competitor, showing FedEx it can swing the stock whenever it wants.

    You see? Relentless.

    https://www.cnbc.com/2019/12/17/jeff-bezos-relentless-strategy-at-amazon-on-full-display.html

  • Foxconn Plays Tax-Credit Poker With Wisconsin in Troubled Deal

    It doesn’t matter why Foxconn changed its mind. Neither does the disagreement over whether 10.5G is a requirement for the tax credits that helped lure the company to the state. The point is that Wisconsin officials clearly believed a 10.5G plant was coming, and Foxconn did nothing to set them straight.

    What’s important now is both sides’ willingness to patch things up. The documents reproduced by The Verge show that Wisconsin is trying as hard as possible to make it work by offering to let the Taiwanese company rewrite the contract. Foxconn has steadfastly refused, arguing that its new plans hew to the original deal. Some marriage counselling is sorely needed.

    https://www.washingtonpost.com/business/foxconn-plays-tax-credit-poker-with-wisconsin-in-troubled-deal/2019/12/18/eaf516fe-2166-11ea-b034-de7dc2b5199b_story.html