Supplier Report: 1/24/2020


Photo by Michael Dziedzic on Unsplash

Even though Google is under investigation for monopoly tactics, the company announced another acquisition. The search giant is set to purchase cloud sales company Pointy, which helps small companies sell their products online.

The company also announced a long-term strategy to kill browser cookies, with the aim to better protect end-user privacy (and likely unleash their own tracking-standard for advertisers).

Apple also announced an acquisition this week (AI startup Xnor.ai), but that news was overshadowed by the company’s refusal to unlock phones involved with the Pensacola shooting. Should tech companies intentionally open back doors for the government (even with the best of intentions) which could lead to much larger security issues?

Acquisitions/Investments

  • Google acquires Pointy, a startup to help brick-and-mortar retailers list products online, for $163M

    The search giant is acquiring Pointy, a startup out of Dublin, Ireland, which has built hardware and software technology to help physical retailers — specifically those that might not already have an extensive e-commerce storefront detailing in-store inventory — get their products discoverable online without any extra work.

    The companies are not disclosing the financial terms of the deal, but a source tells us it is €147 million ($163 million).

    A source notes that this was a “good outcome” because Pointy has a “one of a kind” product that didn’t really have any comparables in the market. Pointy had also managed to pick up quite a lot of traction as a small startup, working with around 10% of all physical retailers in the U.S. in certain categories (pets and toys were two of those, I was told).

    https://techcrunch.com/2020/01/14/google-is-buying-pointy-a-startup-that-helps-brick-and-mortar-retailers-list-products-online/

  • Equinix is acquiring bare metal cloud provider Packet

    Sara Baack, chief product officer at Equinix, says bringing the two companies together will provide a diverse set of bare metal options for customers moving forward. “Our combined strengths will further empower companies to be everywhere they need to be, to interconnect everyone and integrate everything that matters to their business,” she said in a statement.

    While the companies did not share the purchase price, they did hint that they would have more details on the transaction after it closes, which is expected in the first quarter this year.

    https://techcrunch.com/2020/01/14/equinix-is-acquiring-bare-metal-cloud-provider-packet/

  • Apple acquires Xnor.ai, edge AI spin-out from Paul Allen’s AI2, for price in $200M range

    The three-year-old startup’s secret sauce has to do with AI on the edge — machine learning and image recognition tools that can be executed on low-power devices rather than relying on the cloud. “We’ve been able to scale AI out of the cloud to every device out there,” co-founder Ali Farhadi, who is the venture’s CXO (chief Xnor officer) as well as a UW professor, told GeekWire in 2018.

    Xnor.ai also developed a self-service platform that made it possible for software developers, even those who aren’t skilled in AI, to drop AI-centric code and data libraries into device-centric apps.

    Those two threads of innovation are woven into the startup’s motto: “AI Everywhere, for Everyone.”

    https://www.geekwire.com/2020/exclusive-apple-acquires-xnor-ai-edge-ai-spin-paul-allens-ai2-price-200m-range/

Cloud

  • Google Cloud gets a premium support plan with 15-minute response times

    Google stresses that the team that will answer a company’s calls will consist of “content-aware experts” that know your application stack and architecture. As with similar premium plans from other vendors, enterprises will have a Technical Account manager who works through these issues with them. Companies with global operations can opt to have (and pay for) technical account managers available during business hours in multiple regions.

    The idea here, however, is also to give GCP users more proactive support, which will soon include a site reliability engineering engagement, for example, that is meant to help customers “design a wrapper of supportability around the Google Cloud customer projects that have the highest sensitivity to downtime.” The Support team will also work with customers to get them ready for special events like Black Friday or other peak events in their industry. Over time, the company plans to add more features and additional support plans.

    https://techcrunch.com/2020/01/15/google-cloud-gets-a-premium-support-plan-with-15-minute-response-times/

Security/Privacy

  • Apple Said It Is Helping In The Pensacola Shooting Investigation, But It Won’t Unlock The Shooter’s iPhones

    “We reject the characterization that Apple has not provided substantive assistance in the Pensacola investigation. Our responses to their many requests since the attack have been timely, thorough and are ongoing,” the company said in a statement. “We responded to each request promptly, often within hours, sharing information with FBI offices in Jacksonville, Pensacola and New York. The queries resulted in many gigabytes of information that we turned over to investigators. In every instance, we responded with all of the information that we had.”

    But Apple said nothing about actually unlocking the gunman’s two iPhones. Instead, it reiterated its stance on privacy.

    “We have always maintained there is no such thing as a backdoor just for the good guys,” the company explained. “Backdoors can also be exploited by those who threaten our national security and the data security of our customers. … We feel strongly encryption is vital to protecting our country and our users’ data.

    https://www.buzzfeednews.com/article/scottlucas/william-barr-apple-request-unlock-iphones

  • Google Says Chrome Will End Support for Third-Party Cookies That Track You. Here’s Why That’s Not All Good News

    So, let’s look at the good news and the bad news. If you’re a user, there’s mostly good news, because ending third-party cookies is generally good for privacy. The caveat here is that it’s not yet entirely clear how Google plans to have it both ways. Meaning, it’s not clear how Google thinks it can provide a privacy-protected browsing experience that also provides targeted ads.

    There’s also the fact that some less ethical advertisers will no doubt resort to other types of more nefarious tracking, like browser and device fingerprinting. Those technologies create a profile of you based on information sent by your browser about your device, the operating system, your location, and other unique identifiers. Safari has introduced protection against that, and it will be interesting if Google takes a similar approach with Chrome.

    https://www.inc.com/jason-aten/google-says-chrome-will-end-support-for-third-party-cookies-that-track-you-thats-not-all-good-news.html

Software/SaaS

  • Mozilla lays off 70 as it waits for new products to generate revenue

    In an internal memo, Mozilla chairwoman and interim CEO Mitchell Baker specifically mentions the slow rollout of the organization’s new revenue-generating products as the reason for why it needed to take this action. The overall number may still be higher, though, as Mozilla is still looking into how this decision will affect workers in the U.K. and France. In 2018, Mozilla Corporation (as opposed to the much smaller Mozilla Foundation) said it had about 1,000 employees worldwide.

    https://techcrunch.com/2020/01/15/mozilla-lays-off-70-as-it-waits-for-subscription-products-to-generate-revenue/?guccounter=1

  • Daily Crunch: Goodbye Hipmunk

    Founded by Adam J. Goldstein and Reddit co-founder Steve “spez” Huffman, Hipmunk was one of the first well-made “metasearch” travel sites. It scrounged up flights (and hotels/car rentals/etc.) from across myriad services like Expedia, Priceline, etc., presenting all the times and prices in one big, skimmable interface.

    Now the Hipmunk team says the website and app are both shutting down. Oh, and we’ve confirmed that Goldstein and Huffman tried to buy the company back from SAP Concur, but that doesn’t seem to have panned out.

    https://techcrunch.com/2020/01/15/daily-crunch-goodbye-hipmunk/

Infrastructure/Hardware

  • Report: Intel CPU Supply Issues Will Likely Persist Through 2020

    Intel has previously admitted to being stuck between a rock and a hard place and their CEO, Bob Swan, gave a very candid explanation for the situation they are in right now. It does, however, mean that AMD *will* be eating away more market share from Intel as OEMs and AIBs have to switch to AMD parts to maintain their volume as Intel’s foundries are running at peak capacity and cannot keep up with demand. Every chip order that Intel is not able to meet means market share gained by AMD.

    It also doesn’t help that Intel’s chips ship at a premium (and it makes no sense to kill that premium right now when demand exceeds supply) and OEMs/AIBs have to pass that cost down to consumers who may prefer to go with AMD alternatives anyways. If there is one thing we know for sure it is that 2020 is going to be a make or break year for Intel and things won’t start looking up for the company till late 2021.

    https://wccftech.com/report-intel-cpu-supply-issues-will-likely-persist-through-2020/

Other

  • Silicon Valley Abandons the Culture That Made It the Envy of the World

    Eric Schmidt, the former CEO of Google, said much the same last year. “Chinese companies are growing faster, they have higher valuations, and they have more users than their non-Chinese counterparts,” he said. “It’s very important to understand that there is a global competition around technology innovation, and China is a significant player and likely to remain so.”

    This is a full reversal of the language that tech promoters used to sell Silicon Valley–style innovation and competitiveness for decades. Saxenian has noticed the change in how the Valley describes itself, or at least in how the dominant firms do. “Advocacy of the small, innovative firm and entrepreneurial ecosystem is giving way to more and more justifications for bigness (scale economics, competitive advantage, etc.),” Saxenian wrote to me in an email. “The big is beautiful line is coming especially from the large companies (Facebook, Google, Amazon, Apple) that are threatened by antitrust and need to justify their scale.”

    This sort of talk prompts one obvious, knee-jerk response: It’s simply hypocrisy. When Google and Facebook were start-ups, their executives said start-ups were good. Now that Google and Facebook are huge, their executives say huge companies are good. It’s cynical, if not unexpected.

    https://www.theatlantic.com/technology/archive/2020/01/why-silicon-valley-and-big-tech-dont-innovate-anymore/604969/

Supplier Report: 1/10/2020


Photo by Annie Spratt on Unsplash

Hitting goals is critical for a business, especially in the tech world. We are seeing companies trade their culture in order to hit business targets (see Google and Amazon). The media is coming down hard on Google for these shifts, but as we have seen with WeWork, the time of the unicorn darlings is over and the stock market is demanding profits once again.

SoftBank and Masayoshi Son are another root cause for this tonal shift. At the moment, many of SoftBank’s investments are performing poorly (again see WeWork and Uber). Son’s investment strategies enabled many of the wayward valuations over the last few years and a market course-correction was in order.

If a good idea doesn’t make a profit (somehow), it isn’t going to survive. Capitalism is cruel and wonderful beast.

Acquisitions/Investments

  • Here’s a Masayoshi Son Shopping List for 2020

    The numbers are so bad, you have to laugh. Uber: down 37% since IPO. WeWork: valuation cut by 80%. Wag: sold back to founders at a loss. But Son will bounce back. He has to, because he has another Vision Fund to raise and run. Instead of being cowed into humility, it’s more likely he’ll double down and make even more fantastical bets with other people’s money. To help him out, I did a multivariate analysis(1) based on past SoftBank deals to come up with a list of investments he ought to consider.

    Also:

    Saudi AramcoTo be frank, Saudi Arabia’s state oil company isn’t really the kind of thing SoftBank should be putting money into because oil is just not futuristic enough. Data is said to be the new oil anyway. But then, taking Saudi money is something many believe Son shouldn’t be doing at all in light of the murder of writer Jamal Khashoggi. Son has pledged not to abandon the Saudis — after all, they gave $45 billion to the Vision Fund — and so that commitment may as well include throwing support behind Crown Prince Mohammed bin Salman and his nation’s largest asset. Riyadh ended up settling for a $1.7 trillion market cap at IPO, after previously assuring everyone that it was worth at least $2 trillion. While it hit that figure within days of listing, the shortfall at IPO is equivalent to three Vision Funds. After WeWork’s $40 billion drop in value, Masa will feel right at home.

    https://www.washingtonpost.com/business/energy/heres-a-masayoshi-son-shopping-list-for-2020/2019/12/30/af519386-2b69-11ea-bffe-020c88b3f120_story.html

  • IBM Bet Everything on an Acquisition in 2019. Now It Needs to Grow Again.

    The Red Hat deal is just one in a decadeslong series of IBM moves to keep up with shifting technology trends. Keep in mind that IBM over the years built and later unloaded large businesses in desktop computers, laptops, printers, microprocessors, chip manufacturing, and typewriters. (Didn’t you once own an IBM Selectric?) The latest move will help IBM stay relevant in a world in which cloud-based services have come to dominate the information technology landscape.

    While IBM over the last decade has made a lot of noise about Watson, the company’s cloud-based artificial intelligence software platform, the company has been slow to establish a leadership position in the public cloud, falling behind the market leaders: Amazon.com’s (AMZN) Amazon Web Services, Microsoft’s (MSFT) Azure, and Alphabet’s (GOOGL) Google Cloud Platform.

    https://www.barrons.com/articles/ibm-bet-everything-on-red-hat-in-2019-51577479288

Artificial Intelligence

  • Google AI Beats Doctors at Breast Cancer Detection—Sometimes

    The model is the latest step in Google’s push into health care. The Alphabet Inc. GOOG 0.07% company has developed similar systems to detect lung cancer, eye disease and kidney injury.

    Google and Alphabet have come under scrutiny for privacy concerns related to the use of patient data. A deal with Ascension, the second-largest health system in the U.S., allows Google to use AI to mine personal, identifiable health information from millions of patients to improve processes and care.

    The health data used in the breast-cancer project doesn’t include identifiable information, Google Health officials said, and the data was stripped of personal indicators before given to Google.

    https://www.wsj.com/articles/google-ai-beats-doctors-at-breast-cancer-detectionsometimes-11577901600

  • Illinois says you should know if AI is grading your online job interviews

    It’s not just that we don’t know how these systems work. Artificial intelligence can also introduce bias and inaccuracy to the job application process, and because these algorithms largely operate in a black box, it’s not really possible to hold a company that uses a problematic or unfair tool accountable.

    A new Illinois law — one of the first of its kind in the US — is supposed to provide job candidates a bit more insight into how these unregulated tools actually operate. But it’s unlikely the legislation will change much for applicants. That’s because it only applies to a limited type of AI, and it doesn’t ask much of the companies deploying it.

    Also:

    “It’s hard to feel that that consent is going to be super meaningful if the alternative is that you get no shot at the job at all,” said Rieke. He added that there’s no guarantee that the consent and explanation the law requires will be useful; for instance, the explanation could be so broad and high-level that it’s not helpful.

    https://www.vox.com/recode/2020/1/1/21043000/artificial-intelligence-job-applications-illinios-video-interivew-act

Cloud

  • Amazon Has Long Ruled the Cloud. Now It Must Fend Off Rivals.

    Amazon’s success in the cloud, more recently, has suffered setbacks beyond the lost Pentagon deal. Last year, one of its biggest banking customers, Capital One Financial Corp. , had more than 100 million customer records stolen that were stored on Amazon’s cloud. And more big corporations are turning to other cloud vendors. Some are worried the online retail giant could become a competitor, according to people familiar with the matter. Many large multinationals have longstanding relationships with Microsoft or Oracle, but not with Amazon.

    “What we’re seeing now is there’s another wave of late-adopter customers coming to market. These are customers that have never used cloud before, so they’re investigating,” said Raj Bala, research director at Gartner. “A fair number of these customers will certainly end up at [Microsoft’s] Azure, because they meet that profile: they run a lot of Windows, they tend to want to play it safe, and the decision makers in that camp tend to favor Azure to a large extent.”

    https://www.wsj.com/articles/amazon-has-long-ruled-the-cloud-now-it-must-fend-off-rivals-11578114008

Security/Privacy

  • What California’s New Privacy Law Means for You

    Not everybody will have to comply with the law. The CCPA only applies to companies that earn more than $25 million in gross annual revenue, collect personal data on more than 50,000 users, or make more than 50 percent of their revenue selling user data.

    It’s also worth highlighting that while the bill technically took effect on January 1, California’s Attorney General has stated enforcement isn’t likely to begin until sometime this summer, giving lawmakers some additional time to work out some early kinks, clarify murky language, or water down existing requirements upon lobbyist request. Already we’re seeing that some companies aren’t complying with the law.

    Groups like the Electronic Frontier Foundation say they spent the better part of 2019 trying to keep lobbyists from numerous industries from weakening the bill, since empowered, informed consumers will inevitably opt out of data sales, costing companies billions.

    https://www.vice.com/en_us/article/z3bvyx/what-californias-ccpa-new-privacy-law-means-for-you

Other

  • Former Google human rights chief says he was ‘sidelined’ over censored Chinese search engine

    As Google pushed for deals in authoritarian Saudi Arabia and launched the Google Center for Artificial Intelligence in Beijing, LaJeunesse says, he pushed for a company-wide human rights program that would bring new oversight to product launches. But Google rebuffed the idea, and eventually brought in a colleague to oversee policy issues related to Dragonfly.

    “Just when Google needed to double down on a commitment to human rights,” LaJeunesse writes in the blog post, “it decided to instead chase bigger profits and an even higher stock price.”

    The issues extended to the broader culture within the company as well, according to LaJeunesse. He says, at one point, during an all-hands meeting, his boss at the company suggested Asian employees “don’t like to ask questions.”

    https://www.theverge.com/2020/1/2/21046522/google-china-dragonfly-ross-lajeunesse-human-rights-chief-censorship

    Google has little choice to be evil or not in today’s fractured internet

    Google used to have a lot of agency, which is unfortunately declining very, very rapidly.

    I’ve talked about the fracturing of the internet into different spheres of influence for quite literally years. Countries like China in particular, but also Russia, Iran and others, are seizing more and more exacting control of the internet’s plumbing and applications, subsuming the original internet’s spirit of openness and freedom and placing this communications medium under their iron fists.

    As this fracturing has occurred, companies like Google, or Shutterstock, or even the NBA, have increasingly faced what I’ve called an “authoritarian straddle” — they can either work with these countries and follow the local rules, or they can just get out, with serious ramifications for their home markets.

    https://techcrunch.com/2020/01/02/google-has-little-choice-to-be-evil-or-not-in-todays-fractured-internet/

  • Amazon threatens to fire critics who are outspoken on its environmental policies

    Amazon’s external communications policy “is not new and we believe is similar to other large companies,” company spokeswoman Jaci Anderson said in a statement. In response to whether Amazon was trying to stifle workers, Anderson said employees are “encouraged to work within their teams,” including by “suggesting improvements to how we operate through those internal channels.”

    Tech workers have recently become more outspoken about concerns over their employers’ policies. During a Sept. 20 protest, thousands of Amazon employees walked out and criticized the company’s climate policies and practices. In November 2018, thousands of Google employees walked off the job to protest of the company’s handling of sexual harassment claims. Workers at Google, Amazon and Microsoft have spoken out in criticism of facial-recognition technology from their companies, fearing misuse by law enforcement and other government agencies.

    https://www.washingtonpost.com/technology/2020/01/02/amazon-threatens-fire-outspoken-employee-critics-its-environmental-policies/
    Additional Comments:
    This isn’t a union situation, but it feels similar to when Regan broke the unions in the 80’s. The air traffic controllers thought they couldn’t be replaced… and then Regan replaced them. Those people were barred from air traffic control jobs for years until Clinton granted amnesty.
    https://www.npr.org/2019/12/13/788002965/episode-958-when-reagan-broke-the-unions

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

Supplier Report: 12/13/2019


Photo by Marten Bjork on Unsplash

Google’s founders are leaving the company at a time when employees are actively protesting leadership decisions and the US Government is building a monopoly case. Google/Alphabet CEO Sundar Pichai is going to be very busy.

Google is not the only IT firm with labor issues… The Labor Department’s case against Oracle for underpaying women and minorities is underway and Oracle isn’t looking very woke (is that still a thing?).

Finally… It seems that the e-Scooter fad is slowing down. Bird, one of the more popular companies is laying off staff after an acquisition and a knock-off company named Unicorn is closing their doors before they ever even ramped up (I hope this is a sign of things to come).

Acquisitions/Investments

  • Adobe is buying the Oculus Medium VR sculpting app

    Why is Oculus selling Medium? It could be Facebook scaling back its non-gaming VR efforts. But Medium is also slightly redundant for Oculus. The company also launched a professional-oriented art app called Quill, which was relaunched as Quill 2.0 in August with expanded animation capabilities. And where Quill is a 3D painting app in the style of Tilt Brush (which is owned by Google), Medium works a lot more like a traditional 3D modeling program, so it fits better with Adobe’s existing offerings. As for its impact on VR in general, it depends on where Adobe takes the product in 2020 — and how deeply it integrates Medium into its larger creative suite.

    https://www.theverge.com/2019/12/6/20999185/adobe-facebook-oculus-medium-vr-sculpting-app

Cloud

  • Google Co-Founders Page, Brin Give Up Management Roles

    Google co-founders Larry Page and Sergey Brin stepped down from active management of the internet giant’s parent, surrendering immediate control to a low-key company veteran who must navigate global regulatory threats as well as employee discontent.

    Page and Brin, who had been chief executive and president, respectively, of Google parent Alphabet Inc., said Tuesday they would hand control immediately to Sundar Pichai, Google’s existing CEO. They remain on Alphabet’s board and will still together control a majority of voting power over company decisions under Alphabet’s dual-class share structure.

    https://www.wsj.com/articles/sundar-pichai-to-replace-larry-page-as-ceo-of-alphabet-11575409229

    Why Alphabet’s days could be numbered under its new CEO

    Shielding Google from those “other bets” such as driverless cars no longer seems so urgent. Alphabet and other tech titans — particularly those effectively controlled by their founders — have a relatively long leash from investors to invest in both the projects that generate earnings now and on whatever comes next. Amazon, for example, spent $14 billion to buy a niche grocery store chain, and it’s investing in far-flung businesses such as health care and entertainment.

    Amazon has always received a longer leash to tinker than most other companies, but I think Google’s cash firepower also lets it experiment without creating an artificial structure to shield Google from its less mature corporate cousins. There may be a reason that Alphabet never became a blueprint for other technology companies that wanted to keep up with the times.

    https://www.theverge.com/interface/2019/12/5/20995520/alphabet-obsolete-sundar-pichai-ceo-page-brin

Security/Privacy

  • How Ring Went From ‘Shark Tank’ Reject to America’s Scariest Surveillance Company

    Although there’s no credible evidence that Ring actually deters or reduces crime, claiming that its products achieve these things is essential to its marketing model. These claims have helped Ring cultivate a surveillance network around the country with the help of dozens of taxpayer-funded camera discount programs and more than 600 police partnerships.

    When police partner with Ring, they are required to promote its products, and to allow Ring to approve everything they say about the company. In exchange, they get access to Ring’s Law Enforcement Neighborhood Portal, an interactive map that allows police to request camera footage directly from residents without obtaining a warrant.

    https://www.vice.com/en_us/article/zmjp53/how-ring-went-from-shark-tank-reject-to-americas-scariest-surveillance-company
    A World With a Billion Cameras Watching You Is Just Around the Corner

    The report, from industry researcher IHS Markit, to be released Thursday, said the number of cameras used for surveillance would climb above 1 billion by the end of 2021. That would represent an almost 30% increase from the 770 million cameras today. China would continue to account for a little over half the total.

    Fast-growing, populous nations such as India, Brazil and Indonesia would also help drive growth in the sector, the report said. The number of surveillance cameras in the U.S. would grow to 85 million by 2021, from 70 million last year, as American schools, malls and offices seek to tighten security on their premises, IHS analyst Oliver Philippou said.

    https://www.wsj.com/articles/a-billion-surveillance-cameras-forecast-to-be-watching-within-two-years-11575565402

Software/SaaS

  • SAP customers are revolting – here’s why

    The problem for both customers and SAP can be summed up in the words of a retiring executive with close on 30 years SAP experience. He said that his greatest disappointment is that SAP has not really delivered what it promised in terms of end to end integrated business processes and that the addition of many new acquired technologies only makes the ability to create a seamlessly integrated landscape nigh on impossible. The R/3 days when integration was a reality are long gone. It should therefore be no surprise that even showcase customers like Jazz describe a business technology landscape that includes SAP, Workday and Salesforce.

    Equally worrying for me was the degree of frustration across the SAP ecosystem at what one partner described as ‘appalling communication’ around what SAP is doing to help customers get across the S/4 line. Hillary Blinds, an early Suite for HANA customer for example shrugged at the prospect of moving to S/4, despite its commitment to SAP across departments other vendors could own.

    https://diginomica.com/sap-customers-are-revolting-heres-why

  • Oracle allegedly underpaid women and minorities by $400 million. Now the details are set to come out in court.

    The first witness, former employee Kirsten Hanson Garcia, who worked for Oracle for more than 16 years, most recently in human resources as senior director of talent development, testified that during a meeting in the mid-2000s with top executives, the head of human resources said, “Well, if you hire a woman, she will work harder for less money.”

    Palantir, a data-mining company, settled the claims in 2017, while the department’s investigation into Google has been mired in a dispute over access to compensation data. That makes the Oracle hearing a rare airing of testimony from the employees who allegedly faced discrimination, as well as compensation data at a major tech company. Oracle and Google are also facing private pay, promotion, or hiring discrimination lawsuits filed by current and former employees.

    https://www.washingtonpost.com/technology/2019/12/05/oracle-allegedly-underpaid-women-minorities-by-million-now-details-are-set-come-out-court/

Infrastructure/Hardware

  • Bernie Sanders’ Broadband Plan Is Comcast’s Worst Nightmare

    The plan would restore the FCC’s authority and net neutrality rules stripped away by the Ajit Pai FCC, subjecting ISPs to far greater oversight. It also proposes banning ISPs from imposing arbitrary and unnecessary usage caps and overage fees, which critics have long said are little more than punitive price hikes on captive customers.

    But Sanders’ plan also spends a lot of time advocating for community broadband. First by proposing $150 billion in new funding to aid the growing roster of towns and cities that have begun building their own networks after years of industry neglect. Secondly by eliminating the 19 protectionist state laws big ISP lobbyists have used to try and crush those efforts.

    https://www.vice.com/en_us/article/evjjmn/bernie-sanders-broadband-plan-is-comcasts-worst-nightmare
    Love the idea Bernie – but where is the $150B coming from? How does this idea become reality?

  • Ericsson to pay over $1 billion to resolve U.S. corruption probes

    The bribery took place over many years in countries including China, Vietnam and Djibouti, the department said. The total charges include a criminal penalty of more than $520 million, plus $540 million to be paid to the U.S. Securities and Exchange Commission (SEC) in a related matter.

    The company admitted it had conspired with others to violate the Foreign Corrupt Practices Act (FCPA) from at least 2000 to 2016 by engaging in a scheme to pay bribes and to falsify books and records and by failing to implement reasonable internal accounting controls, the Justice Department said in a statement.

    https://www.reuters.com/article/us-usa-ericsson/ericsson-to-pay-over-1-billion-to-resolve-u-s-corruption-probes-idUSKBN1YA2HU

Other

  • Elon Musk Cleared by Jury in Defamation Case Over ‘Pedo’ Tweet

    The legal battle stems from Mr. Musk’s involvement in a high-profile effort to rescue a youth soccer team trapped in a flooded cave in Thailand last year. British cave explorer Vernon Unsworth, who helped in the early days of the operation, criticized Mr. Musk’s effort to use a mini-sub to save the boys as a public-relations stunt. The device was never used, and Mr. Unsworth told CNN that Mr. Musk could “stick his submarine where it hurts.”

    https://www.wsj.com/articles/elon-musk-cleared-by-jury-in-defamation-case-over-pedo-tweet-11575678498

  • Amazon Leases New Manhattan Office Space, Less Than a Year After HQ2 Pullout

    The giant online retailer said it has signed a new lease for 335,000 square feet on Manhattan’s west side in the new Hudson Yards neighborhood, where it will have more than 1,500 employees. The new lease represents Amazon’s largest expansion in New York since the company stunned the city by abandoning plans to locate its second headquarters in the Queens neighborhood of Long Island City.

    The deal comes the same day The Wall Street Journal reported that Facebook is in talks to lease 700,000 square feet in a neighborhood nearby. Combined with Facebook’s other recent deals in the city, such a move would catapult the social-media company into the top ranks of the city’s largest corporate tenants, alongside JPMorgan Chase & Co. and Bank of America Corp. , which have had a major presence in New York for many years.

    https://www.wsj.com/articles/amazon-leases-new-manhattan-office-space-less-than-a-year-after-hq2-pullout-11575671243

  • Bird lays off several Scoot employees

    Bird has laid off less than two dozen employees, The San Francisco Chronicle first reported. The layoffs affect employees Bird brought on board as part of its ~$25 million acquisition of Scoot earlier this year.

    Those affected were salaried employees and/or people with technical backgrounds, according to Bird.

    “The integration of Bird and Scoot does not impact or change our previous or future commitments to San Francisco or to providing its residents and visitors access to the highest quality and most reliable shared micromobility vehicles and services,” a Bird spokesperson told TechCrunch. “We are planning to relocate a number of Scoot team members to our Santa Monica headquarters while also maintaining an office in San Francisco for our operations and maintenance teams as well as a number of regionally specific roles.”

    https://techcrunch.com/2019/12/06/bird-lays-off-several-scoot-employees/

    I was hoping this stupid scooter fad was dying down, but this is just corporate restructuring. Oh wait…
    Unicorn, e-scooter startup from co-creator of Tile, shuts down with no money for refunds

    Unicorn, the electric scooter startup from the co-creator of gadget tracker Tile, is shutting down operations after blowing all its cash on Facebook and Google ads but only receiving 350 orders for its glossy white e-scooters, it claims. In an email to customers, the company says it lacks the resources to deliver any of its $699 two-wheelers, and won’t be issuing refunds “as we are completely out of funding.”

    In a remorseful email, Unicorn CEO Nick Evans said the company had “totally failed as a business” and has also “spread the cost of this failure to you, the early customers that believed in us.”

    https://www.theverge.com/2019/12/7/21000094/unicorn-electric-scooter-shut-down-refund-tile