Supplier Report: 4/17/2020


Photo by Eric Ward on Unsplash

The relationship between SoftBank and WeWorks is crumbling and it is extremely interesting to watch this situation implode.

As more information comes to light about how WeWork operated and their overall strategy of real estate manipulation, you can’t feel bad for either company’s failure (at least I don’t). Manipulate. Overvalue. Cash Out. I hope investors and reputable banks learn from this mess (hello Uber).

Meanwhile, Foxconn might actually use those manufacturing plants in Wisconsin for something useful… making respirators.

Acquisitions/Investments

  • Friendship Ended With SoftBank, Now Lawsuits Are WeWork’s Best Friend

    SoftBank’s reasoning for backing out includes concern about regulatory probes into WeWork and more technical details concerning an exchange of shares that SoftBank sabotaged in order to prevent this deal. WeWork is suing SoftBank, claiming that concern over regulatory troubles are not grounds for backing out because WeWork has been controlled by SoftBank for nearly half a year now. In WeWork’s own words:

    “The investigations were not a surprise, given Neumann’s conduct and the Company’s loss of billions in value. SoftBank had complete knowledge of the facts underlying the investigations when it executed the [Master Transaction Agreement]. … All of the investigations were known to SoftBank at the time that it signed the December 27, 2019 amendment to the MTA. But SoftBank did not raise the investigations as a basis not to consummate the Tender Offer until recently, as the approaching April 1, 2020 closing date caused it to become increasingly desperate.”

    https://www.vice.com/en_us/article/y3m7gy/friendship-ended-with-softbank-now-lawsuits-are-weworks-best-friend

  • German security firm Avira has been acquired by Investcorp at a $180M valuation

    The financial terms of the acquisition are not being disclosed in the companies’ joint announcement, but the CEO of Avira, Travis Witteveen, and ITP’s MD, Gilbert Kamieniecky, both said it gives Avira a total valuation of $180 million. The deal will involve ITP taking a majority ownership in the company, with Avira founder Tjark Auerbach retaining a “significant” stake of the company in the deal, Kamieniecky added.

    Avira is not a tech startup in the typical sense. It was founded in 1986 and has been bootstrapped (in that it seems never to have taken any outside investment as it has grown). Witteveen said that it has “tens of millions” of users today of its own-branded products — its anti-virus software has been resold by the likes of Facebook (as part of its now-dormant antivirus marketplace) — and many more via the white-label deals it makes with big names. Strategic partners today include NTT, Deutsche Telekom, IBM, Canonical and more.

    https://techcrunch.com/2020/04/08/german-security-firm-avira-has-been-acquired-by-investcorp-at-a-180m-valuation/

Artificial Intelligence/Robotics

I mentioned it a few weeks ago, but it is very strange how there has been almost no news about AI and automation for the last 6 weeks.

Once would assume with people being unable to work, there would be some talk of automation (even if it is an uncomfortable topic with people out of work), but… crickets.

Software/SaaS

  • Our Government Runs on a 60-Year-Old Coding Language, and Now It’s Falling Apart

    The Government Accountability Office has repeatedly warned about the use of legacy programming languages for critical systems. In 2019, the GAO issued a report summarizing 10 federal computing systems that were in desperate need of an overhaul. For instance, the Department of Education’s system for processing federal student aid applications was implemented in 1973. It takes 18 contractors to maintain the system, and since it’s written in COBOL, it requires specific hardware and is difficult to integrate with newer software languages.

    GAO considers COBOL a legacy language, which means agencies have trouble finding staff that knows how to write the code at all. And when they can, the specialist contractors charge a premium.

    It also means that when a system breaks, there might not be somebody there to fix it. And that’s where New Jersey finds itself now, with a sagging system and lack of qualified engineers.

    https://onezero.medium.com/our-government-runs-on-a-60-year-old-coding-language-and-now-its-falling-apart-61ec0bc8e121

  • SAP the first of the enterprise software vendors to pre-announce
    • FRS Cloud Revenue Up 29% €2.01 billion €2.01 billion
    • Non-IFRS Cloud Revenue Up 27% €2.01 billion
    • Software Licenses Revenue Down 31% to €0.45 billion
    • Total Revenue Up 7% to €6.52 billion
    • IFRS Operating Profit Up More Than 100% to €1.21 billion
    • Non-IFRS Operating Profit Up 1% to €1.48 billion

    The decline in software licenses is steep but not wholly unexpected. SAP has all but stopped selling licenses and is moving rapidly to a subscription model.

    The question of just how fragile the ERP market has become will be the subject of much commentary on the earnings call. For the moment, SAP believes decisions are being ‘postponed,’ anticipating that conditions will remain very difficult through Q2 with a gradual recovery in Q3-4.

    https://diginomica.com/sap-first-enterprise-software-vendors-pre-announce

  • Microsoft thinks coronavirus will forever change the way we work and learn

    While usage continues to rise, Microsoft is releasing a new remote work trend report to highlight how work habits are changing.

    Naturally, more people are using the video and meetings capabilities of Teams, and Microsoft has seen a new daily record of 2.7 billion meeting minutes in a single day. That’s up 200 percent from 900 million minutes in mid-March, around the time many businesses shifted toward remote working. Unsurprisingly, people are turning on video in Teams meetings two times more than before, with video calls usage in Teams growing by more than 1,000 percent in March. Microsoft found that people in Norway and the Netherlands are more likely to turn on video with around 60 percent of calls including video, compared to 38 percent in the US and 47 percent in the UK.

    https://www.theverge.com/2020/4/9/21214314/microsoft-teams-usage-coronavirus-pandemic-work-habit-change

  • Google’s Hangouts Meet is now just Google Meet

    In an email to The Verge, Google confirmed that it has officially changed the service’s name. Google also confirmed that Meet is an independent part of G Suite, the portfolio of business services that also includes brands such as Gmail, Docs, Sheets, and Drive. Hangouts Chat, the text-messaging arm of the Hangouts brand, is also part of the suite.

    The rebrand still appears to be a work in progress. As of this writing, the service is still called Hangouts Meet by Google in the iOS App Store, and its G Suite landing page also retains the old name. And while G Suite’s website lists “Meet” as an included service at the top of the page, “Hangouts Meet” is still referenced in a list lower down.

    The rebrand comes at a time when Google Meet has seen explosive growth as the COVID-19 pandemic forces workplaces to move their meetings online. Google Meet’s usage is currently 25 times what it was in January, Google revealed late last month, and the service is gaining more than 2 million new users a day.

    https://www.theverge.com/2020/4/8/21214059/google-hangouts-meet-rebrand-video-chat-conferencing

    Ugh… Google’s message tool strategy frustrates me so much.

Other

  • Foxconn will produce ventilators at its controversial Wisconsin plant

    Medtronic’s CEO was unable to share the numbers of ventilators that Foxconn will produce during his interview with CBNC. However, in a statement provided to Reuters, Foxconn said that it’s hoping to speed up production time so that the ventilators can be produced as soon as possible, and that medical and technical personnel from the two companies were working closely together. The partnership came about after Medtronic open-sourced the design for its PB-560 ventilator, which has been downloaded 70,000 times, according to Ishrak.

    https://www.theverge.com/2020/4/8/21213269/foxconn-ventilators-wisconsin-plant-medtronic-pb-560-open-source-design-covid-19

  • End of an Era: Microsoft Word Now Flagging Two Spaces After Period as an Error

    The change was received with mixed reactions by the user community, but many believe that using just one space after a period is something that makes total sense.

    “Consistency and efficiency won. Two spaces after a period is a relic of the typewriter world,” someone says. “There should always be two spaces unless you need to cut down to fit in the 280 limit. Readability improves with two spaces,” another Twitter user, who this time suggests we should all stick with two spaces after a period, explains.

    The new approach is without a doubt controversial, but while change is hard, it’s all just a matter of time until everyone adapts to the one-space rule.

    https://news.softpedia.com/news/end-of-an-era-microsoft-word-now-flagging-two-spaces-after-period-as-an-error-529706.shtml

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

Supplier Report: 4/19/2019

IBM and Oracle have been eliminated from the Pentagon’s “Project JEDI” RFP, after almost a year of complaints and public accusations that the bidding event was rigged in Amazon’s favor.

Meanwhile Google, who bowed out of Project JEDI bidding early, made several cloud-based announcements this week to differentiate themselves from AWS and Microsoft. Thomas Kurian is wasting no time.

Foxconn is getting blasted in the press this week due to their (lack of) plans at their Wisconsin manufacturing plant. There are reports that rented office buildings are almost completely empty and the overall strategy for the new plant make absolutely no sense.

Acquisitions

  • Accenture announces intent to buy French cloud consulting firm

    Accenture says that Cirruseo’s strength and deep experience in Google’s cloud-based artificial intelligence solutions should help as Accenture expands its own AI practice. Google TensorFlow and other intelligence solutions are a popular approach to AI and machine learning, and the purchase should help give Accenture a leg up in this area, especially in the French market.

    “The addition of Cirruseo would be a significant step forward in our growth strategy in France, bringing a strong team of Google Cloud specialists to Accenture,” Olivier Girard, Accenture’s geographic unit managing director for France and Benelux said in a statement.

    https://techcrunch.com/2019/04/09/accenture-announces-intent-to-buy-french-cloud-consulting-firm/

Artificial Intelligence

  • A Google Brain Program Is Learning How to Program

    In a new paper, Google Brain researchers propose using neural networks to model human source code editing. Effectively this means treating code editing as a sequence and having a machine learn how to “write code” like in a natural language model — by analysing a short paragraph of editing, the model can extract intent and leverage that to generate subsequent edits.

    To understand the intent behind developers’ source code editing actions, the main challenge was how to learn from earlier editing sequences in order to predict upcoming edits. Researchers explain the AI models needed to understand “the relationship of the change to the state” rather than “the content of the edits” or “the result of the edit.”

    https://medium.com/syncedreview/a-google-brain-program-is-learning-how-to-program-27533d5056e3
    (Thanks JD!)

Cloud

  • Google’s hybrid cloud platform is coming to AWS and Azure

    So with Anthos, Google will offer a single managed service that will let you manage and deploy workloads across clouds, all without having to worry about the different environments and APIs. That’s a big deal and one that clearly delineates Google’s approach from its competitors’. This is Google, after all, managing your applications for you on AWS and Azure.

    https://techcrunch.com/2019/04/09/googles-anthos-hybrid-cloud-platform-is-coming-to-aws-and-azure/

  • What’s Been Lacking at Google’s Cloud? Enough Humans

    Google Cloud had prioritized developing technology over sales and support, said Gene Reznik, strategy chief at the consulting firm Accenture PLC, which helps clients deploy tech from major cloud services including Google’s.

    “There is a lot of hand-holding required” with big corporate customers, Mr. Reznik said. But Google often had product engineers rather than account managers handle customer calls. “It really wasn’t their day job,” he said, adding that Mr. Kurian brings a corporate credibility to Google’s “consumer-centric culture.”

    https://www.wsj.com/articles/whats-been-lacking-at-googles-cloud-enough-humans-11554724802

  • Amazon and Microsoft Are 2 Finalists for $10 Billion Pentagon Contract

    The Pentagon said Wednesday that Amazon and Microsoft were the final candidates for a hotly contested $10 billion contract to bring modern cloud computing to the Defense Department.

    IBM and Oracle had also bid for the project, known as the joint enterprise defense infrastructure, or JEDI. But the Defense Department concluded that they did not meet the minimum requirements for the program.

    https://www.nytimes.com/2019/04/10/technology/amazon-microsoft-jedi-pentagon.html

  • Why IBM Is Leaving The Marketing Cloud Business

    Rather than scrabbling over marketshare in the marketing cloud space, where Salesforce, Adobe and Oracle have been dropping billions, IBM is focusing on core technologies and infrastructure, AI, blockchain, global services, consulting and creating a cloud environment to compete with Amazon, Google and Microsoft.

    “That’s the big game IBM is hunting,” Stanhope said.

    But even back when IBM seemed like it was ramping up its focus on marketing technology, there wasn’t necessarily buy in from the big wigs at the top. IBM also lost one of its marketing product cheerleaders when David Kenny, who led efforts at IBM Watson, left to take on the CEO role at Nielsen in November 2018.

    https://adexchanger.com/platforms/why-ibm-is-leaving-the-marketing-cloud-business/

Security

  • Amazon’s Alexa isn’t just AI — thousands of humans are listening

    What the company doesn’t tell you explicitly, as highlighted by an in-depth investigation from Bloomberg published this evening, is that one of the only, and often the best, ways Alexa improves over time is by having human beings listen to recordings of your voice requests. Of course, this is all buried in product and service terms few consumers will ever read, and Amazon has often downplayed the privacy implications of having cameras and microphones in millions of homes around the globe. But concerns about how AI is trained as it becomes an ever more pervasive force in our daily lives will only continue to raise alarms, especially as most of how this technology works remains beyond closed doors and improves using methods Amazon is loathe to ever disclose.

    https://www.theverge.com/2019/4/10/18305378/amazon-alexa-ai-voice-assistant-annotation-listen-private-recordings

  • Nearly 70 percent of hotel websites leak personal data, Symantec study finds

    The main issue involved booking confirmation emails, according to Symantec principal threat researcher Candid Wueest. Many of the messages include an active link that directs to a separate website where guests can access their reservation having to log in again. The booking code and the guest email are often in the URL itself, which in and of itself isn’t a big deal.

    But, like many businesses, hotels share your personal data with third parties, meaning that your booking code and email are visible to them as well. The attacker would only need access to your booking code and email in order to find your address, full name, cell phone number, passport number and other highly sensitive information. Symantec also found that a smaller number of hotels didn’t encrypt the links sent in confirmation emails, giving attackers another window of opportunity.

    https://www.engadget.com/2019/04/10/nearly-70-percent-of-hotel-websites-leak-personal-data-symantec/

  • Hackers publish personal data on thousands of US police officers and federal agents

    TechCrunch spoke to one of the hackers, who didn’t identify his or her name, through an encrypted chat late Friday.

    “We hacked more than 1,000 sites,” said the hacker. “Now we are structuring all the data, and soon they will be sold. I think something else will publish from the list of hacked government sites.” We asked if the hacker was worried that the files they put up for download would put federal agents and law enforcement at risk. “Probably, yes,” the hacker said.

    The hacker claimed to have “over a million data” [sic] on employees across several U.S. federal agencies and public service organizations.

    https://techcrunch.com/2019/04/12/police-data-hack/

Software/SaaS

  • Google’s new AI tools scan documents, take phone calls, and search for products

    Google today launched Document Understanding AI in beta, a serverless platform that automatically classifies, extracts, and structures data within contained within scanned physical and digital documents. It integrates with existing products from Iron Mountain, ​Box​, DocuSign, ​Egnyte​, ​Taulia​, UiPath, ​Accenture, and others, and Google says that customers who’ve tapped it for custom document classification have seen up to 96% accuracy.

    “Most companies have billions of documents — and moving that information into digital or cloud-native solutions where it can be easily accessed and analyzed can involve many hours of manual entry,” Besik said. “Document Understanding AI can help automate document processing workflows. This means you can … start making data-driven business decisions faster and more accurately.”

    https://venturebeat.com/2019/04/10/googles-new-ai-tools-scan-documents-take-phone-calls-and-search-for-products/

Infrastructure/Hardware

  • Microsoft says its data shows FCC reports massively overstate broadband adoption

    Part of the issue is that internet providers essentially just report their own coverage via a form, and the FCC reports it more or less as fact. That’s a problem not just when a mistake on a form adds tens of millions of subscribers that don’t actually exist, but when large ISPs overstate their coverage so they don’t have to pay to fill in the gaps.

    Microsoft’s suggestions, which it has made to Members of Congress and the FCC (though it won’t, as I originally wrote here, testify in the Senate on Wednesday) would make it far more difficult to fib on the Form 477, which as written seems to provide enormous leeway for a company to imply coverage that isn’t actually there.

    https://techcrunch.com/2019/04/08/microsoft-says-its-data-shows-fcc-reports-massively-overstate-broadband-adoption/

Other

  • Thousands of Amazon employees ask the company to adopt a climate change plan

    Employees, citing Amazon’s work for oil and gas companies and what they describe as insufficient plans for action on climate change, are asking the company to commit to several goals. Among them, they ask the company to make “a complete transition away from fossil fuels,” and to advocate politically for climate-friendly policies. They also ask the company to adopt a shareholder resolution calling for a climate change plan.

    In a statement, an Amazon spokesperson highlighted company initiatives, like work to reduce the carbon footprint of shipments, and described Amazon’s commitment to environmental issues as “unwavering.”

    “Amazon’s sustainability team is using a science-based approach to develop data and strategies to ensure a rigorous approach to our sustainability work,” the spokesperson said. “We have launched several major and impactful programs and are working hard to integrate this approach fully across Amazon.”

    https://www.theverge.com/2019/4/10/18304800/amazon-employees-open-letter-climate-change-plan

  • Foxconn is confusing the hell out of Wisconsin

    In February, a Foxconn executive cheerfully likened the company’s vague, morphing plans to designing and building an airplane midflight.

    Such statements have not been particularly reassuring to residents of Wisconsin, where state and local governments have already taken very concrete actions to prepare the way for what was supposed to be an enormous manufacturing facility. Taxpayers have already spent more than $300 million on roadwork, infrastructure, and land acquisition related to the project. In August, Moody’s downgraded Mount Pleasant’s credit rating over the extreme levels of debt it took on for the area’s $763 million incentive package, costs that have since grown closer to a billion, in part because it had to take out higher interest long-term loans after Foxconn’s plans changed. Dozens of residents have been relocated, some under threat of eminent domain.

    https://www.theverge.com/2019/4/10/18296793/foxconn-wisconsin-location-factory-innovation-centers-technology-hub-no-news

  • Google Sued Over Abuse of Search Power, Opening Path for More Claims

    In the suit filed in a Berlin court Friday, Idealo internet GmbH, a leading price-comparison service that is majority-owned by publisher Axel Springer SPR 2.61% SE, alleged that Google made it harder for users of its search engine to find links to Idealo after the U.S. company started promoting its own price-comparison offering, now called Google Shopping. Alphabet’s European entity, Google Ireland Ltd., is also targeted by the suit.

    https://www.wsj.com/articles/suit-could-raise-googles-liabilities-in-price-comparison-case-11555056397

  • Net Neutrality Vote Passes House, Fulfilling Promise by Democrats

    But the legislation, the Save the Internet Act, faces long odds in the Republican-led Senate. The Senate leader, Mitch McConnell, said this week that the legislation would be “dead on arrival.” Earlier this week, the Office of Management and Budget advised the White House to veto the law if it reached the president’s desk. The office said in a letter that since the law had been overturned, the broadband industry had thrived, a good sign of how deregulation helped the economy.

    The legislation would prohibit blocking and throttling web traffic and would categorize broadband as a service open to heavy regulation. Supporters say the regulation would prevent companies from blocking or slowing the delivery of content like videos. Opponents say it would strap broadband providers like Verizon and Comcast with heavy-handed restrictions, and could lead to price controls.

    https://www.nytimes.com/2019/04/10/technology/net-neutrality-vote.html

Photo by eberhard grossgasteiger on Unsplash

Supplier Report: 1/25/2019

IBM continues to have a strong news cycle, but this week is more positive. The company is expected to purchase T-Systems mainframe business unit for approximately one billion dollars.

Big Blue also inked a $550m, 8-year deal/joint-venture with Vodaphone to build out AI and cloud services. They also announced a few blockchain projects that customers are willing to pay for (sounds like everything is coming up Milhouse)

On a down note, the company’s AI schemes continue to under-perform with the announcement that “Watson Workspace” is being shut down due to “lack of customer interest.”

Acquisitions

  • IBM to Reportedly Buy T-Systems’ Mainframe Business Unit

    IBM is acquiring T-Systems’ mainframe services business from Deutsche Telekom for roughly $986 million, according to the Handelsblatt and IT-Zoom.

    Roughly 400 T-Systems employees across six countries will transition to IBM in May 2019 as part of the deal, according to the reports. The mainframe unit is only one small piece of the larger T-Systems — a German global IT services and consulting company headquartered in Frankfurt. Founded in 2000, T-Systems is a subsidiary of Deutsche Telekom.

    https://www.nasdaq.com/article/ibm-to-reportedly-buy-t-systems-mainframe-business-unit-cm1081559

  • Fiserv to Acquire First Data in $22 Billion All-Stock Deal

    Fiserv Inc. has struck a deal to buy First Data Corp. for $22 billion, combining two companies that, though largely unknown to consumers, provide much of the financial technology that connects Wall Street to Main Street.

    The all-stock deal underscores the growing threat of upstart financial-technology firms to a lucrative but obscure business long controlled by more mature companies. Fiserv and First Data provide a range of technology services to banks, merchants and other companies involved in the business of moving money.

    https://www.wsj.com/articles/fiserv-to-acquire-first-data-in-22-billion-all-stock-deal-11547643455

  • Google is buying Fossil’s smartwatch tech for $40 million

    The smartwatch category continues to be dominated by Apple’s offerings, and top competitors Fitbit and Samsung have opted to go different routes, supporting the Pebble-based Fitbit OS and Tizen, respectively. All of this has left Google struggling to differentiate itself and its partners’ offerings. Fossil’s team certainly has the know how to build solid watch hardware, so this could prove a solid match.

    https://techcrunch.com/2019/01/17/google-is-buying-fossils-smartwatch-tech-for-40-million/

  • AWS makes another acquisition, grabbing TSO Logic

    Amazon confirmed the purchase by email and referred to the statement on the TSO Logic website from CEO Aaron Rallo. “We are very pleased to share the news that TSO Logic will be joining the AWS family,” Rallo wrote in the statement.

    The company takes data about workloads and applications and helps customers find the most efficient place to run them by measuring requirements like resource needs against cost to find the right balance at any given time.

    https://techcrunch.com/2019/01/15/aws-makes-another-acquisition-grabbing-tso-logic/

Artificial Intelligence

  • IBM to put Watson Workspace out to pasture over lack of adoption

    IBM is killing off its AI-powered collaboration tool Watson Workspace after it failed to “resonate” with clients, according to a leaked memo.

    Watson Workspace is IBM’s answer to Slack or Microsoft Teams, but with AI capabilities. It provided a platform for shared workspaces, collaborations and even hosted third-party apps. But, despite having only been released in 2016 in beta, the app is being shut down by the 28 February, according to a memo seen by The Register.

    https://www.itpro.co.uk/business-operations/32768/ibm-to-put-watson-workspace-out-to-pasture-over-lack-of-adoption
    Another IBM AI tool that fails to connect with the purchasing public…

  • Robot Hotel Loses Love for Robots

    Guests became frustrated when the hotel’s robots failed to keep pace with Siri or Alexa. One laggard was the robot assistant in each room named “Churi” because of its tulip-shaped head. The doll-like device can manage simple hello-how-are-you type conversations and adjust room heating and lighting in response to voice commands. But some guests quizzed her in vain about things like the opening time of the nearby theme park.

    Atsushi Nishiguchi, a guest at the hotel in 2017, said that after an irate exchange with Churi he decided to phone the hotel reception, only to find there was no phone in the room because the assistant was intended to handle guests’ requests. He used his cellphone to call the main hotel number to reach a human worker.

    https://www.wsj.com/articles/robot-hotel-loses-love-for-robots-11547484628

Cloud

  • IBM and Vodafone form cloud, 5G and AI business venture and ink $550M service deal

    IBM is announcing a new venture with mobile carrier Vodafone, in a deal that will comes in two parts. First, IBM will supply Vodafone’s B2B unit Vodafone Business with managed services in the areas of cloud and hosting. And second, the two will together work on building and delivering solutions in areas like AI, cloud, 5G, IoT and software defined networking to enterprise customers.

    The latter part of the deal appears to be a classic JV that will see both sides bringing something to the table — employees from both companies will be moving into a separate office together very soon that will essentially be “neutral” territory. The former part, meanwhile, will see Vodafone paying IBM some $550 million in an eight-year agreement.

    https://techcrunch.com/2019/01/17/ibm-and-vodafone-form-550m-venture-to-develop-cloud-5g-and-ai-business-solutions/

Security

  • Amazon shareholders want the company to stop selling facial recognition to law enforcement

    This resolution, organized by nonprofit organization Open MIC, represents a group of shareholders that represent a total of $1.32 billion in assets under management.

    “It’s a familiar pattern: a leading tech company marketing what is hailed as breakthrough technology without understanding or assessing the many real and potential harms of that product,” Open MIC Executive Director Michael Connor wrote in a blog post. “Sales of Rekognition to government represent considerable risk for the company and investors. That’s why it’s imperative those sales be halted immediately.”

    https://techcrunch.com/2019/01/17/amazon-shareholders-want-the-company-to-stop-selling-facial-recognition-to-law-enforcement/

  • Another huge database exposed millions of call logs and SMS text messages

    Voipo, a Lake Forest, Calif. communications provider, exposed tens of gigabytes worth of customer data.

    Voipo is a voice-over-internet provider, providing residential and business phone line services that they can control themselves in the cloud. The company’s backend routes calls and processes text messages for its users. But because one of the backend ElasticSearch databases wasn’t protected with a password, anyone could look in and see streams of real-time call logs and text messages sent back and forth.

    https://techcrunch.com/2019/01/15/another-huge-database-exposed-millions-of-call-logs-and-sms-text-messages/

Software/SaaS

  • IBM Announces 2 Blockchain Pilots For The Mining Industry

    The pilot program’s first use case will utilize the MineHub blockchain platform and test the technology’s ability to “manage concentrate from Goldcorp’s Penasquito Mine in Mexico throughout its path to market.” Once the ore is mined, the data will be uploaded to the blockchain platform. It will include data about sustainability and ethical practices. The data is then verified by “independent regulators,” and the ore can then be loaded for shipping. The MineHub platform records each transaction and lets participants “view and reconcile” this data as the product moves through the supply chain. EDCCs (better known as smart contracts) will be used by companies such as ING Bank and Wheaton Precious Metals for “trade finance, streaming and royalty contracts.”

    https://www.ethnews.com/ibm-announces-2-blockchain-pilots-for-the-mining-industry
    Looks like IBM has found someone to “pay for the roads to be built”

Other

  • WeWork’s CEO Makes Millions as Landlord to WeWork

    Mr. Neumann has made millions of dollars by leasing multiple properties in which he has an ownership stake back to WeWork, one of the country’s most valuable startups. Multiple investors of the privately held company said the arrangement concerned them as a potential conflict of interest in which the CEO could benefit on rents or other terms with the company.

    A WeWork spokesman said all related-party deals are reviewed and approved by the board or an independent committee and disclosed to investors. Mr. Neumann declined to comment through a spokesman.

    https://www.wsj.com/articles/weworks-ceo-makes-millions-as-landlord-to-wework-11547640000

  • Foxconn might slow hiring at its Wisconsin plant

    On Friday, The Wall Street Journal reported that the company “fell short of the minimum number of jobs it was required to create in 2018 to claim state-job creation tax credits.” The Wisconsin Economic Development Corp says that the company needed to create 260 full-time jobs, but only created 178. As a result, the company won’t receive tax credits for 2018. The WSJ cites the state’s low employment rate as a factor for the slow hiring, and notes that the company could earn $19.1 million in tax credits if it passes its hiring goal of 2,080 jobs this year. The company denied reports last November that it had been looking to bring in workers from China to bolster its workforce.

    On top of that, Foxconn appears to be adjusting its expectations for hiring in the near future. It tells Bloomberg that it “remains committed” to creating those promised 13,000 jobs, but that it might slow its hiring moving forward: “we need to have the agility to adapt to a range of factors, including global economic conditions.” The company and former Governor Scott Walker have been heavily criticized, both for the steep subsidies promised to the company, as well as the possibility that the company might not deliver on its promise to bring 13,000 jobs to the state.

    https://www.theverge.com/2019/1/19/18189480/foxconn-wisconsin-plant-possible-hiring-slowdown-jobs

News You Can Use: 10/31/2018

  • A groundbreaking study reveals how we want machines to treat us

    In a new study published in Nature, they show that when it comes to how machines treat us, our sense of right and wrong is informed by the economic and cultural norms of where we live. They discovered three general geographic areas with distinct ethical ideas about how autonomous vehicles should behave: West (which includes North America and Christian European countries), East (which includes Far East countries and Islamic countries), and South (which includes much of South America and countries with French influences). These groups also have their own subclusters, like Scandinavia within the West and Latin American countries within the South. As the study’s interactive graphic shows, Brazilians tend to prefer sparing passengers over pedestrians; Iranians are much more likely to spare pedestrians; Australians are more likely to spare the physically fit than the average.

    https://www.fastcompany.com/90259513/a-groundbreaking-study-reveals-how-we-want-machines-to-treat-us

  • Upgrade? No Thanks. Americans Are Sticking With Their Old Phones

    Pricier devices, fewer subsidies from carriers and the demise of the two-year cellphone contract have led consumers to wait an average of 2.83 years to upgrade their smartphones, according to data for the third quarter from HYLA Mobile Inc., a mobile-device trade-in company that works with carriers and big-box stores. That is up from 2.39 years two years earlier.

    https://www.wsj.com/articles/upgrade-no-thanks-americans-are-sticking-with-their-old-phones-1540818000?ns=prod/accounts-wsj
    Samsung Chalks Up Another Record Profit, but Phones Are a Worry

    In an earnings release, Samsung said smartphone shipments were flat and the profit drop was attributable to “increased promotional costs and a negative currency impact.”

    Consumers are balking at $1,000 phones and holding on to their devices longer than ever. But the South Korean technology giant was surprised this year by poor sales for its flagship Galaxy S9 handsets, a device marketed around its animated human emojis. To rejuvenate sales, Samsung moved up the release of its large-size Galaxy Note 9 to Aug. 24, weeks earlier than the prior-year model.

    https://www.wsj.com/articles/chips-displays-drive-samsung-to-another-record-profit-1540946737

  • Why whistleblowing is the loneliest and most courageous act in the world
  • Wisconsin’s $4.1 billion Foxconn factory boondoggle

    But what seemed so simple on a napkin has turned out to be far more complicated and messy in real life. As the size of the subsidy has steadily increased to a jaw-dropping $4.1 billion, Foxconn has repeatedly changed what it plans to do, raising doubts about the number of jobs it will create. Instead of the promised Generation 10.5 plant, Foxconn now says it will build a much smaller Gen 6 plant, which would require one-third of the promised investment, although the company insists it will eventually hit the $10 billion investment target. And instead of a factory of workers building panels for 75-inch TVs, Foxconn executives now say the goal is to build “ecosystem” of buzzwords called “AI 8K+5G” with most of the manufacturing done by robots.

    Polls now show most Wisconsin voters don’t believe the subsidy will pay off for taxpayers, and Walker didn’t even mention the deal in a November 2017 speech announcing his run for re-election.

    https://www.theverge.com/2018/10/29/18027032/foxconn-wisconsin-plant-jobs-deal-subsidy-governor-scott-walker

  • FCC Falsely Claims Community Broadband an ‘Ominous Threat to The First Amendment’

    More than 750 such networks have been built in the United States in direct response to a lack of meaningful broadband competition and availability plaguing America. Studies have routinely shown that these networks provide cheaper and better broadband service, in large part because these ISPs have a vested interest in the communities they serve.

    In his speech, O’Rielly highlighted efforts by the last FCC, led by former boss Tom Wheeler, to encourage such community-run broadband networks as a creative solution to private sector failure. O’Rielly subsequently tried to claim, without evidence, that encouraging such networks would somehow result in government attempts to censor public opinion.

    https://motherboard.vice.com/en_us/article/bj49j8/fcc-falsely-claims-community-broadband-an-ominous-threat-to-the-first-amendment

Photo by Yucel Moran on Unsplash