Tag: IBM

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Supplier Report: 2/15/2019

Location. Location. Location.

Amazon is scrapping their New York City plans due to severe political push-back on the incentives NYC provided and the overall impact to the city.

Meanwhile, the long discussed Foxconn LCD factory that was to be built in Wisconsin, is covered in a cloud confusion. First they were, then they weren’t, and now they are looking to build a smaller facility…maybe?

Acquisitions

  • Report: Intel bids up to $6B to buy Mellanox

    If the deal reaches fruition, the $6 billion price tag would represent a 30% premium over the last closing price of Mellanox on Nasdaq last night, according to a story by Globes.

    The news of Intel’s interest in buying Mellanox came on the heels of Monday’s news that Intel was investing $11 billion to expand its chip plant in Israel. Intel also announced on Monday that it had received a $1 billion government grant for its expansion.

    https://www.fiercetelecom.com/telecom/report-intel-bids-up-to-6b-to-buy-mellanox

Artificial Intelligence

  • Google and Microsoft warn investors that bad AI could harm their brand

    These disclosures are not, on the whole, hugely surprising. The idea of the “risk factors” segment is to keep investors informed, but also mitigate future lawsuits that might accuse management of hiding potential problems. Because of this they tend to be extremely broad in their remit, covering even the most obvious ways a business could go wrong. This might include problems like “someone made a better product than us and now we don’t have any customers,” and “we spent all our money so now don’t have any.”

    But, as Wired’s Tom Simonite points out, it is a little odd that these companies are only noting AI as a potential factor now. After all, both have been developing AI products for years, from Google’s self-driving car initiative, which began in 2009, to Microsoft’s long dalliance with conversational platforms like Cortana. This technology provides ample opportunities for brand damage, and, in some cases, already has. Remember when Microsoft’s Tay chatbot went live on Twitter and started spouting racist nonsense in less than a day? Years later, it’s a still regularly cited as an example of AI gone wrong.

    https://www.theverge.com/2019/2/11/18220050/google-microsoft-ai-brand-damage-investors-10-k-filing

Cloud

  • Google and IBM still trying desperately to move cloud market share needle

    This week, the two companies made some more noise, letting the cloud market know that they are not ceding the market to anyone. For IBM, which is holding its big IBM Think conference this week in San Francisco, it involved opening up Watson to competitor clouds. For a company like IBM, this was a huge move, akin to when Microsoft started building apps for iOS. It was an acknowledgement that working across platforms matters, and that if you want to gain market share, you had better start thinking outside the box.

    While becoming cross-platform compatible isn’t exactly a radical notion in general, it most certainly is for a company like IBM, which if it had its druthers and a bit more market share, would probably have been content to maintain the status quo. But if the majority of your customers are pursuing a multi-cloud strategy, it might be a good idea for you to jump on the bandwagon — and that’s precisely what IBM has done by opening up access to Watson across clouds in this fashion.

    https://techcrunch.com/2019/02/12/google-and-ibm-still-trying-desperately-to-move-cloud-market-share-needle/

Security

  • Huawei Corporate Entities Conspired to Steal Trade Secret Technology and Offered Bonus to Workers who Stole Confidential Information from Companies Around the World

    According to the indictment, in 2012 Huawei began a concerted effort to steal information on a T-Mobile phone-testing robot dubbed “Tappy.” In an effort to build their own robot to test phones before they were shipped to T-Mobile and other wireless carriers, Huawei engineers violated confidentiality and non-disclosure agreements with T-Mobile by secretly taking photos of “Tappy,” taking measurements of parts of the robot, and in one instance, stealing a piece of the robot so that the Huawei engineers in China could try to replicate it. After T-Mobile discovered and interrupted these criminal activities, and then threatened to sue, Huawei produced a report falsely claiming that the theft was the work of rogue actors within the company and not a concerted effort by Huawei corporate entities in the United States and China. As emails obtained in the course of the investigation reveal, the conspiracy to steal secrets from T-Mobile was a company-wide effort involving many engineers and employees within the two charged companies.

    As part of its investigation, FBI obtained emails revealing that in July 2013, Huawei offered bonuses to employees based on the value of information they stole from other companies around the world, and provided to Huawei via an encrypted email address.

    https://www.justice.gov/opa/pr/chinese-telecommunications-device-manufacturer-and-its-us-affiliate-indicted-theft-trade

Software/SaaS

  • SAP job cuts prove harsh realities of enterprise transformation

    SAP announced that it was restructuring in order to save between €750 million and €800 million (between approximately $856 million and $914 million).

    While the company tried to put as positive a spin on the announcement as possible, it could involve up to 4,000 job cuts as SAP shifts into more modern technologies. “We are going to move our people and our focus to the areas where the new economy needs SAP the most: artificial intelligence, deep machine learning, IoT, blockchain and quantum computing,” CEO Bill McDermott told a post-earnings press conference.

    https://techcrunch.com/2019/01/29/sap-job-cuts-prove-harsh-realities-of-enterprise-transformation/

Datacenter/Hardware

  • Google Fiber is leaving Louisville in humiliating setback

    In Louisville, Google Fiber installation crews had been using a process called “shallow trenching” that involved laying fiber cable two inches beneath the sides of roads in the city and covering them up with sealant. The company seemed optimistic about this plan until some of the cable started becoming exposed over time, requiring a second cover-up with hot asphalt. It seems Access realized it had to go a bit deeper with the cabling; in San Antonio, a similar method is used — but the fiber is laid at least six inches deep into the ground. Google Fiber has at times faced legal challenges from rivals (like AT&T) that don’t want to share utility poles, so shallow trenching is also a way around that hurdle.

    Unfortunately, things have somehow gone so awry in Louisville that Google Fiber claims it would need to rebuild the entire network to get everything to a satisfactory point, and it seems Alphabet just isn’t interested in blowing the cash that would be necessary to do that. So instead, Google Fiber will today alert Lousville customers that their service will end on April 15th.

    https://www.theverge.com/2019/2/7/18215743/google-fiber-leaving-louisville-service-ending

  • Intel names Robert Swan as permanent CEO

    Intel’s stock slid Thursday after the chipmaker named interim CEO Robert Swan to the position permanently, ending a months-long search following the ouster of Brian Krzanich for what it called a “consensual relationship” with an employee.

    Swan, 58, has been interim CEO for seven months and chief financial officer since 2016. He was also elected to the board, the company said. Several media outlets including Bloomberg previously reported Swan didn’t want the job.

    https://www.cnbc.com/2019/01/31/intel-names-robert-swan-ceo.html

  • Apple will reportedly reveal its news subscription service next month

    Apple might face some stiff opposition in its bid to launch a subscription news service this spring. Wall Street Journal tipsters claim publishers like the New York Times and Washington Post are objecting to terms that would have Apple take “about half” of the revenue from the service, dividing the rest among publishers based on the amount of time people spend reading articles. That’s a considerably higher cut than the 30 percent Apple takes during the first year of a subscription, let alone the 15 percent it takes later on.

    It also wants “at least some” outlets to commit to supplying news for at least a year. Publishers are split on this, according to the sources — some want a longer commitment, while others want a chance to back out sooner.

    The price isn’t set in stone, but it’s tentatively set to cost the same $10 per month that you pay for Apple Music.

    https://www.engadget.com/2019/02/12/apple-news-service-publisher-objections/

  • Microsoft begs users to stop using Internet Explorer

    IE is often used by enterprises and organisations that wish to run legacy web apps, as the outdated browser still supports them, but choosing the easy way out now could come back to haunt businesses later.

    Basically, by continuing to use IE as opposed to a more modern web browser, organisations are creating additional costs for themselves later by choosing the easiest, most convenient solution now as opposed to the best long term approach.

    https://www.techradar.com/uk/news/microsoft-begs-users-to-stop-using-internet-explorer

Other

  • No one seems to know what Foxconn is doing in Wisconsin

    On January 30th, Louis Woo, special assistant to Foxconn chief executive Terry Gou, told Reuters that the company was rethinking the whole screen-making idea. “In Wisconsin we’re not building a factory,” Woo said. He explained that Foxconn can’t compete producing televisions in the US. Instead, it would be more profitable to manufacture LCD panels in China and Japan, ship them to Mexico, and import them in the US. On Thursday, the Nikkei Asian Review reported that work on the Wisconsin project had been suspended.

    Later that day, Woo appeared to backtrack vaguely, sending a peculiar email to the Milwaukee TV station WTMJ suggesting that it was hard to know what to call the project. “No matter how we look at it, the campus cannot be simply described as a factory,” Woo wrote. “It is a lot more than that.”

    https://www.theverge.com/2019/2/1/18206261/foxconn-wisconsin-factory-government-subsidies-investments
    After a ‘personal conversation’ with Trump, Foxconn says it will build a factory in Wisconsin after all

    “After productive discussions between the White House and the company, and after a personal conversation between President Donald J. Trump and Chairman Terry Gou, Foxconn is moving forward with our planned construction of a Gen 6 fab facility,” a statement read. A Gen 6 facility is smaller than the factory Foxconn initially promised in 2017, but larger than the assembly facility Foxconn said it would build yesterday.

    Foxconn has changed its plans multiple times since 2017, when then-Governor Scott Walker wooed the company with a record-breaking $4.5 billion in taxpayer subsidies. At the time, Foxconn promised a state-of-the-art, “Gen 10.5” screen-producing facility, and Walker and Trump touted the deal for bringing manufacturing jobs back to the US. In June of last year, however, the company said it would make a far smaller “Gen 6” facility. This week, the company said it wouldn’t make screens in Wisconsin at all, and would instead do a mix of assembly and “knowledge work.” The sudden change in plans seemed to catch Wisconsin officials off guard, and left locals worried about the future of their communities.

    https://www.theverge.com/2019/2/1/18207102/trump-foxconn-wisconsin-factory-build
    Foxconn is killing a second $9B factory

    Foxconn will postpone most of the production planned in a 61 billion yuan ($9 billion) display panel project in the southern Chinese city of Guangzhou for at least six months, according to internal documents obtained by the Nikkei Asian Review. In the U.S., a $10 billion investment in display production in the state of Wisconsin has been suspended and scaled back as a result of negotiations with new Gov. Tony Evers, a Foxconn document obtained by Nikkei shows.

    Foxconn’s decision to delay work on the two factories throws into doubt the promise of fresh investment and employment at a sensitive time for both economies. China’s economic growth has slowed to a 28-year low, while in the U.S., President Donald Trump continues to seek wins on his vow to bring manufacturing jobs back to America.

    https://techcrunch.com/2019/01/31/foxconn-is-killing-a-second-9b-factory/

  • Amazon Is Reconsidering Plan to Put Campus in New York

    The recent change in conversation at Amazon accelerated after Monday’s nomination of New York state Sen. Mike Gianaris, a vocal opponent of the deal, to a state board that would allow him to veto the development plan, people familiar with the matter said. Mr. Gianaris needs to be approved for the post by Gov. Andrew Cuomo.

    The governor and New York Mayor Bill de Blasio, fellow Democrats who have often clashed, agreed on wooing Amazon to New York with up to $3 billion in state and city tax incentives. On Friday, Mr. Cuomo reiterated his support for the deal for Amazon as he warned that local opponents could derail the project.

    https://www.wsj.com/articles/amazon-reconsidering-plan-to-put-campus-in-new-york-11549668969?ns=prod/accounts-wsj
    Amazon Pulls Out of Planned New York City Headquarters

    Amazon on Thursday canceled its plans to build an expansive corporate campus in New York City after facing an unexpectedly fierce backlash from some lawmakers and union leaders, who contended that a tech giant did not deserve nearly $3 billion in government incentives.

    Amazon released a statement mentioning they will not open their search to another city at this time:

    We do not intend to re-open the HQ2 search at this time. We will proceed as planned in Northern Virginia and Nashville, and we will continue to hire and grow across our 17 corporate offices and tech hubs in the U.S. and Canada.

    https://www.nytimes.com/2019/02/14/nyregion/amazon-hq2-queens.html

Photo by Zoltan Kovacs on Unsplash

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Supplier Report: 2/1/2019

Microsoft purchased an open source database company continuing a trend they started with the acquisition of GitHub. As the company embraces open source, the open source community is grumbling about what happens when large software companies get involved with open source (see Amazon’s use and then discarding of MongoDB).

Speaking of Amazon, the company is getting serious about advertising, and they have access to massive amounts of personalized purchasing habit information. The company not only sells products, makes products, tracks behavior – it will have the ability to market to you as well. That certainly feels… intrusive.

Acquisitions

  • Microsoft buys an open source database startup to give it an edge against Amazon Web Services

    On Thursday, Microsoft announced it has acquired Citus Data, an open source database startup. Citus Data was first founded in 2010, and raised a relatively meager $13.2 million in venture capital funding in that time.

    What Citus Data does is take PostgreSQL, a database management system that’s popular with developers, and transform it into databases that can be dispersed over multiple computers. That gives developers the ability to bring their databases to ever-larger scales, for even the most demanding apps.

    https://www.businessinsider.com/microsoft-acquires-open-source-postgresql-startup-citus-data-2019-1

Artificial Intelligence

  • One-quarter of jobs are at ‘high-risk’ of being automated

    Roles in transportation, food prep, production and office admin are among those at highest risk, with robotics and artificial intelligence threatening to automate in the neighborhood of 70 percent of tasks, according to the study. Activities involving processing, data collection and physical labor are, unsurprisingly, most at risk here.

    Automation is expected to have an outsized impact in certain regions in the country, and among less well educated workers. Likewise, it’s expect to impact different segments of the population in different ways.

    https://techcrunch.com/2019/01/26/one-quarter-of-jobs-are-at-high-risk-of-being-automated/

  • Blue Prism to issue $130M in stock to raise new funds

    CEO Alastair Bathgate attempted to put the announcement in the best possible light. “The outcome of this placing, which builds on another year of significant progress for the company, highlights the meteoric growth opportunity with RPA and intelligent automation,” he said in a statement.

    While the company’s revenue more than doubled last fiscal year, from £24.5 million (approximately $32 million) in 2017 to £55.2 million (approximately $72 million) in 2018, losses also increased dramatically, from £10.1 million (approximately $13 million) in 2017 to £26.0 million (approximately $34 million), according to reports.

    https://techcrunch.com/2019/01/24/blue-prism-to-issue-130m-in-stock-to-raise-new-funds/

Cloud

  • Amazon probed for potential conflict over $10B Pentagon contract

    Amazon Web Services (AWS) re-hired a former employee who left the company briefly to work at the Department of Defense, where he reportedly worked for the military’s cloud division Opens a New Window. and on the contract in question, as first reported by The Washington Post.

    A potential competitor for the bid, Oracle, has filed a lawsuit claiming the Pentagon needs to look into the role of the employee and whether the process is unfairly biased toward Amazon.

    While an official for the department previously said the employee’s work on the project did not impact the integrity of the procurement, the filing also noted that the agency is considering whether there is a conflict of interest now that AWS has submitted a bid for the contract.

    https://www.foxbusiness.com/technology/amazons-bid-for-10b-pentagon-contract-under-review

  • IBM Smashes Analyst Estimates, But Can it Catch Cloud Rivals Amazon & Google?

    For the quarter, IBM pulled in $21.76 billion in revenue. While impressive, that figure is lower than what was reported for Q4 2017. Back then, IBM reported $22.54 billion in revenue.

    IBM’s cloud service offerings fall into its strategic imperatives group, which reaped almost $40 billion in revenue in 2018. Cloud revenue contributed about $19 billion of that, which was 12 percent higher than it was in 2017.

    https://www.ccn.com/ibm-smashes-analyst-estimates-but-can-it-catch-cloud-rivals-amazon-google/

Security

  • Google fined $57m by French regulator for breaching GDPR

    The regulator hit Google on two points: for making it difficult for users to see the detail on why and how they should give consent in order to be sent personalized ads, and for providing a pre-ticked option when requesting consent.

    CNIL has decided that essential information such as data processing purposes, the data storage periods or the categories of personal data used for sending personalized ads are “excessively disseminated” across several documents. This means users can only view the details after clicking through several pages.

    https://digiday.com/media/google-fined-57m-french-regulator-breaching-gdpr/

  • Amazon knows what you buy, and it’s built a $125-billion dollar ad business off it that’s a marketer’s dream

    But many ad agencies are particularly excited by another area of advertising that is less obvious to many consumers. The company has been steadily expanding its business of selling video or display ads — the square and rectangular ads on sites across the web — and gaining ground on the industry leaders, Google and Facebook.

    In addition to knowing what people buy, Amazon also knows where people live, because they provide delivery addresses, and which credit cards they use. It knows how old their children are from their baby registries, and who has a cold, right now, from cough syrup ordered for two-hour delivery. And the company has been expanding a self-service option for ad agencies and brands to take advantage of its data on shoppers.

    https://business.financialpost.com/news/retail-marketing/amazon-knows-what-you-buy-and-its-built-a-125-billion-dollar-ad-business-thats-a-marketers-dream

Software/SaaS

  • Zuckerberg Plans to Integrate WhatsApp, Instagram and Facebook Messenger

    The services will continue to operate as stand-alone apps, but their underlying technical infrastructure will be unified, said four people involved in the effort. That will bring together three of the world’s largest messaging networks, which between them have more than 2.6 billion users, allowing people to communicate across the platforms for the first time.

    The move has the potential to redefine how billions of people use the apps to connect with one another while strengthening Facebook’s grip on users, raising antitrust, privacy and security questions. It also underscores how Mr. Zuckerberg is imposing his authority over units he once vowed to leave alone.

    https://www.nytimes.com/2019/01/25/technology/facebook-instagram-whatsapp-messenger.html

  • PNC, IBM, And Aetna Set To Explore Blockchain Technology For Medical Health Plans

    According to IBM, more members will join this network in the months to come. These members will come from the healthcare industry, technology industry and other startups. After the announcement, the general manager for payers at IBM Watson Health, Barbara Hayes said:

    “While IBM is among the founding members, it is not the only one with a stake. Every founding member involved has an equal stake. It is vital because you don’t have side by side competitors struggling for waste in the healthcare sector 40 to 50 cents on the dollar. In the healthcare sector, these inefficiencies are found in administrative and clinical areas. Sometimes, it may be just friction in the system that ripple into bad customer experience.”

    https://smartereum.com/46967/blockchain-technology-pnc-ibm-and-aetna-set-to-explore-blockchain-technology-for-medical-health-plans-blockchain-news-today/

    IBM is finally starting to realize that companies are not going to pay for unproven technology. It is a shame they weren’t open to partnering to this degree a few years ago.

Other

  • Oracle underpaid thousands of women, minorities, government charges

    The Department of Labor (DoL) accused Oracle of widespread discriminatory wage practices that resulted in the loss of more than $400 million in wages for female, black and Asian employees, according to a federal complaint filed on Tuesday.

    According to the filing, the Silicon Valley giant underpaid women in jobs in its product development, information technology and support job functions, resulting in pay disparities as high as 20 percent, affecting more than 5,000 women. The DoL also alleged that it underpaid black employees, with disparities as high as 7.5 percent, and Asian employees, with gaps as high as 8 percent.

    https://www.foxbusiness.com/markets/oracle-deliberately-underpaid-thousands-of-women-minorities-lawsuit-says

    Oracle Could Lose $100 Million Annually in Federal Contracts Over Pay Discrimination Suit

    The situation threatens an estimated $100 million a year that Oracle gets in federal contracts. The original DOL complaint seeks “an order canceling all of Oracle’s federal government contracts and subcontracts.”

    http://fortune.com/2019/01/23/oracle-discrimination-lawsuit/

  • U.S. Believes It Doesn’t Need to Show ‘Proof’ Huawei Is a Spy Threat

    U.S. intelligence officials have suggested at times that their views on Huawei are informed by definitive examples of malfeasance, though they have so far refused to share such evidence publicly. When the House Intelligence Committee in 2012 published an unclassified report naming Huawei as a security risk, it spoke generally about a lack of trust lawmakers placed in China but steered clear of providing concrete examples of the company being caught engaging in nefarious activity.

    https://www.wsj.com/articles/u-s-believes-it-doesnt-need-to-show-proof-huawei-is-a-spy-threat-11548288297?ns=prod/accounts-wsj

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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

Posted on

Supplier Report: 1/18/2019

IBM had a week of making excuses: First CEO Ginni Rometty had to defend Watson medical after reports from oncologists that the system is incorrectly diagnosing medical issues. Then the company had to defend the lack of growth in blockchain by essentially saying companies need to invest first and hope to see results. Finally, the company is failing to meet their hiring targets in Baton Rouge and are having a job fair – but someone needs to question why the company has a consulting hub in Baton Rouge in the first place.

Acquisitions

  • Amazon Web Services Acquires CloudEndure – Confirmed

    “As an AWS Advanced Technology Partner since 2016, CloudEndure has long joined forces with AWS to help customers future-proof their businesses. This acquisition expands our ability to deliver innovative and flexible migration, backup, and disaster recovery solutions.”

    Israeli media outlets estimate the deal to be worth about $200 to $250 million Dollars.

    https://esellercafe.com/amazon-web-services-acquires-cloudendure-confirmed/

  • Alibaba acquires German big data startup Data Artisans for $103M

    Alibaba has paid €90 million ($103 million) to acquire Data Artisans, a Berlin-based startup that provides distributed systems and large-scale data streaming services for enterprises.

    Data Artisans was founded in 2014 by the team leading the development of Apache Flink, an open source large-scale data processing technology. The startup offers its own dA Platform, with open source Apache Flink and Application Manager, to enterprise customers that include Netflix, ING, Uber and Alibaba itself.

    https://techcrunch.com/2019/01/08/alibaba-data-artisans/

Artificial Intelligence

  • IBM CEO: Watson has not failed

    “Watson for Oncology is doing very well — very well,” Ms. Rometty told STAT during a photo opportunity at the Consumer Electronics Show in Las Vegas where she delivered a keynote address. STAT has requested interviews with Ms. Rometty and other company executives for months with no success.

    In 2018, STAT reported several controversies involving IBM’s health division, including one of its physician customers calling Watson for Oncology a “piece of sh–,” and numerous employee layoffs. A key complaint about Watson for Oncology, which offers cancer treatment recommendations, is that it’s biased toward American treatment methods. However, IBM said it plans to add regional treatment guidelines to Watson for Oncology, as well as real-world data on patient outcomes, to boost user satisfaction.

    https://www.beckershospitalreview.com/artificial-intelligence/ibm-ceo-watson-has-not-failed.html

  • Microsoft Could Help Kroger Counter Amazon’s Growth

    Kroger recently partnered with Microsoft to test out two data-driven connected stores. The two renovated stores will use a smart retail system powered by Internet of Things (IoT) sensors and digital shelves, which display prices, promotions, and nutritional information on screens in front of products. Kroger introduced the shelves, which are already being used in nearly 100 stores, last year. The test stores will help guide shoppers through the aisles to the products they want to buy.

    All those devices will be tethered to Microsoft’s cloud platform Azure, which is already Kroger’s preferred cloud platform. Microsoft and Kroger will also jointly market a commercial retail as a service (RaaS) product to the grocer’s industry peers.

    https://www.fool.com/investing/2019/01/11/microsoft-could-help-kroger-counter-amazons-growth.aspx
    After Amazon-Whole Foods, Microsoft-Kroger: The Grocery Revolution Is Happening

    “The two outfitted Kroger locations, in Monroe, Ohio and Redmond, Wash., will feature digital shelving displays with real-time price updates and product information, as well as digital advertisements personalized to each shopper,” CNBC published on Monday.

    The news of the Microsoft-Kroger partnership dovetails with a report from RBC Capital Markets indicating that Amazon’s cashierless grocery stores take in 50% more revenue than conventional counterparts. Amazon has said it may open up as many as 3,000 Amazon Go stores by 2021, suggesting the possibility of a $4.5 billion business.

    https://streetfightmag.com/2019/01/09/after-amazon-whole-foods-microsoft-kroger-the-grocery-revolution-is-happening/

Cloud

  • Microsoft wins $1.76 billion defense contract: Pentagon

    Microsoft Corp has been awarded a five-year contract worth $1.76 billion for delivering enterprise services for the Defense Department, Coast Guard and intelligence services, the Pentagon said on Friday.

    https://www.reuters.com/article/us-microsoft-defense/microsoft-wins-1-76-billion-defense-contract-pentagon-idUSKCN1P52HB

  • AWS gives open source the middle finger

    AWS argues that while MongoDB is great at what it does, its customers have found it hard to build fast and highly available applications on the open-source platform that can scale to multiple terabytes and hundreds of thousands of reads and writes per second. So what the company did was build its own document database, but made it compatible with the Apache 2.0 open source MongoDB 3.6 API.

    If you’ve been following the politics of open source over the last few months, you’ll understand that the optics of this aren’t great. It’s also no secret that AWS has long been accused of taking the best open-source projects and re-using and re-branding them without always giving back to those communities.

    https://techcrunch.com/2019/01/09/aws-gives-open-source-the-middle-finger/

  • AWS, Coupa Expand IT Spend Visibility For Corporates

    Coupa users can link their accounts to Amazon Web Services to automatically have AWS invoices sent to the Coupa platform. The integration means companies using both Coupa and AWS can more quickly process those invoices, while gaining enhanced visibility into their spend with AWS services.

    The integration deploys Coupa’s InvoiceSmash solution, which accelerates invoice processing and payments for users, aimed at enabling companies to capture early payment discounts from their suppliers.

    https://www.pymnts.com/news/b2b-payments/2019/aws-coupa-it-spend-visibility-management/

Software/SaaS

  • Oracle inks stadium naming rights deal with San Francisco Giants

    The deal appears to be one of the richest of its kind in North American professional sports, which seemingly would trickle through to the Giants’ product on the field. The team already boasted the second-highest payroll in the majors last season at around $203 million.

    Kevin Bartram, principal of Bartram Partnerships, a brand sponsorship consultancy, told Bloomberg the $200 million to $350 million price tag “seems very fair.” He was one of the consultants who brokered the Pacific Telesis-Giants partnership, according to the news outlet.

    https://www.mercurynews.com/2019/01/09/oracle-inks-stadium-naming-rights-deal-with-san-francisco-giants/

    Is this the best use of Oracle’s money at the moment?

  • Why more people aren’t using blockchain, according to IBM

    “We believe that blockchain is a team sport. For a blockchain-based solution to work successfully, it requires multiple entities to come together in a symbiotic relationship and agree on common principles, operating model and governance,” Parzygnat says. “The very nature of blockchain-based solutions require the vision and leadership of a governing body to convene the ecosystem in a common blockchain-based network. Then it requires each enterprise member to acknowledge their core competencies and compete in the market by defending or enhancing them.”

    https://www.finder.com.au/why-more-people-arent-using-blockchain-according-to-ibm

    Translation: “Pay for the roads first, and maybe we will built them”

Other

  • Chinese Huawei Executive Is Charged With Espionage in Poland

    The Chinese national’s detention follows the December arrest of Huawei’s chief financial officer in Canada, at the U.S.’s request, on allegations the company violated U.S. sanctions on Iran. Unlike that case, the Polish charges relate directly to suspicions by Washington and other Western governments that China could use Huawei equipment, or its employees, to help it spy on foreign governments and companies.

    Polish officials said Huawei itself wasn’t charged with any wrongdoing. They didn’t detail the charges or say whether any sensitive information was compromised. Officials also arrested a Polish national on the same charge.

    https://www.wsj.com/articles/chinese-huawei-executive-is-charged-with-espionage-in-poland-11547201100?ns=prod/accounts-wsj

  • Google Nears Win in Europe Over ‘Right to Be Forgotten’

    At issue in the case is the right, established by the court in 2014, for EU residents to demand that search engines remove links containing personal information—such as a home address—from searches for their names. Under the 2014 ruling, search engines must balance those requests against the public’s right to access a link associated with the searched-for name, taking into account, for instance, whether the person is a public figure.

    Maciej Szpunar, an advocate general for the court, argued in Thursday’s nonbinding opinion that if the EU orders removal of content from websites accessed outside the region, there is a danger that other jurisdictions would use their laws to block information from being accessible within the EU.

    https://www.wsj.com/articles/eu-court-adviser-recommends-limited-scope-for-right-to-be-forgotten-11547112114

  • Apple’s trillion-dollar market cap was always a false idol

    It’s worth noting that Apple has hardly been in alone taking a huge hit on its stock price, especially tech stocks, which have been taking a beating since November on Wall Street. Want to talk a trillion dollars, how about the biggest names in tech losing a trillion (that’s with a T, folks) in value in one stretch in November. When Apple halted trading last week to announce lower than expected revenue, the stock dove even further, as it confirmed the worst fears of investors.

    Worse, Chinese consumers have driven iPhone sales just as the Chinese economy has hit a massive speed bump this year. In June, Reuters reported shockingly weak growth. In November, Bloomberg reported that the Chinese economy was slowing down long before the president started a trade war.

    https://techcrunch.com/2019/01/07/apples-trillion-dollar-market-cap-was-always-a-false-idol/

  • IBM now heading to Lafayette to recruit workers for Baton Rouge hub

    The company will conduct a career fair Jan. 19 from 9 a.m. to 2 p.m. at South Louisiana Community College in the Devalcourt Building at 320 Devalcourt St., a news release from Louisiana Economic Development said. IBM is looking to fill 75 available positions in Baton Rouge, the release said.

    IBM fell short on its promise to create 800 jobs in Baton Rouge by 2017 in exchange for state incentives. The company reached an agreement with the state to meet that goal next year and will have to pay a penalty of $10,000 for each job below the threshold of 800.

    https://neworleanscitybusiness.com/blog/2019/01/11/ibm-now-heading-to-lafayette-to-recruit-workers-for-baton-rouge-hub/
    No offense to Louisiana – but it is an odd place to start a work hub. Yes, there are colleges (36 4-year schools), but it isn’t overflowing with students compared to other states, and it doesn’t seem like people want to stay there.
    IBM laying off more than 300 workers in RTP

    The jobs, which were part of an IBM subsidiary called Seterus, will be permanently terminated “no earlier than March 11,” according to the Worker Adjustment and Retraining Notification on Jan. 9.

    The 310 job cuts come a week after IBM agreed to sell Seterus to the mortgage services company the Mr. Cooper Group.

    https://www.newsobserver.com/news/business/article224283465.html

Photo by chuttersnap on Unsplash

Posted on

Supplier Report: 1/11/2019

Apple is having a rough week because they (finally) realized that people don’t want to pay $1,400 for a new phone every year (can we make rotten apple jokes now?). The company needs to shift to a services model ASAP – will they build or will they buy?

IBM is selling IP because they need to get cash quickly to cover their acquisition of Red Hat. Their most recent sell off is a mortgage platform called Seterus to a company called Mr. Cooper Group. I am left wondering why IBM had a mortgage group in the first place.

Continuing 2018’s trend of “you data is never going to be safe” – password management app Blur accidentally exposed user data on their AWS platform.

Acquisitions

  • Mr. Cooper buys IBM mortgage platform that brought in $200 million last year

    Coppell-based Mr. Cooper Group Inc. is continuing to expand its mortgage servicing business with Thursday’s purchase of IBM’s Seterus platform.

    Mr. Cooper said the deal bolsters its portfolio by adding servicing rights to $24 billion in mortgages and a subservicing contract for an additional $24 billion in mortgages. Terms of the transaction weren’t immediately disclosed.

    https://www.dallasnews.com/business/real-estate/2019/01/03/mr-cooper-buys-ibm-mortgage-platform-brought-200-million-last-year

  • Google picks up company behind Q&A app

    Google has quietly acquired Superpod, a startup that had built a question-and-answer mobile app, Axios has learned. Google paid less than $60 million to “acqui-hire” the founders and purchase some of Superpod’s assets, according to a source.

    The bigger picture: The search giant hasn’t been shy about its ambitions for Google Assistant, the voice-activated virtual assistant that it debuted in 2016. Superpod, which lets users ask questions and receive answers from experts, could help Google bolster its virtual assistant’s ability to answer users’ questions.

    https://www.axios.com/google-acquires-superpod-qa-app-38d68263-7122-447b-9d81-58fadc404cb9.html

Artificial Intelligence

  • Forbes is building more AI tools for its reporters

    Over the summer, the business publisher, which just had its most profitable year in more than a decade, rolled out a new CMS, called Bertie, which recommends article topics for contributors based on their previous output, headlines based on the sentiment of their pieces and images too. It’s also testing a tool that writes rough versions of articles that contributors can simply polish up, rather than having to write a full story from scratch. The CMS is currently available to Forbes’ editorial staff and senior contributors in North America, and will be rolled out to all of its contributors in North America and Europe in the first quarter of 2019. The AI story-writing tool, which Forbes’s product team is experimenting with, does not have an immediate roll-out date.

    https://digiday.com/media/forbes-built-a-robot-to-pre-write-articles-for-its-contributors/

  • PepsiCo is using robots to deliver snacks to college students

    The autonomous snackbots, built by Y-Combinator startup Robby Technologies, can travel 20 miles on a charge, and are equipped with a camera, headlights and all-wheel drive to handle rough or wet terrain. Once it arrives, you simply release the lid, grab your snacks and close it to complete the sale. The app presumably takes care of the security and dispensing end of things.

    https://www.engadget.com/2019/01/04/pepsico-robot-snack-delivery/

Cloud

  • What’s Behind Oracle’s Gen 2 Cloud: Q&A with Oracle VP Kyle York

    Why is Oracle calling the new technology “Gen 2”—what is different from other cloud technology?
    As with most new things, the first rev is not always built for the long-term success. First generation public cloud offerings were not architected to accommodate traditional application architectures. They were architected for net-new cloud native applications. Think websites, mobile apps, or ecommerce storefronts—certainly not financial systems, government workloads, or data-intensive applications. Many enterprise workloads simply cannot run in hypervisor-based environments, as they don’t provide the performance predictability and high availability often required by traditional enterprise applications. They also don’t play nice with the tooling and security infrastructure historically deployed on-premise, in a complex ecosystem cultivated over decades.

    Oracle offers the most flexibility in the public cloud, allowing companies to run traditional and cloud-native workloads on the same platform. This enables our customers to reduce operational overhead and costs and enable connectivity and shared data between these workloads.

    http://www.dbta.com/Editorial/News-Flashes/Whats-Behind-Oracles-Gen-2-Cloud-QandA-with-Oracle-VP-Kyle-York-129198.aspx

Security

  • Marriott Says Hackers Swiped Millions of Passport Numbers

    The incident marked one of the largest data breaches in history, rivaled only by a hack of Yahoo Inc. in 2013 and 2014.

    The company said early Friday in a release that the number of guests involved in the data breach is lower than the original 500 million, but it didn’t specify a number.

    Marriott said a total of about 383 million records was “the upper limit” for the number potentially compromised in the incident. That figure includes passport numbers, email addresses and payment-card data of some guests, the company said.

    https://www.wsj.com/articles/marriott-says-hackers-swiped-millions-of-passport-numbers-11546605000?ns=prod/accounts-wsj

  • Hackers Dump Data on Merkel, Politicians in Giant German Leak

    It’s unclear at this point whether the data release is linked to the 2015 Bundestag hack, and how significant it is. It includes two email addresses and a fax number the perpetrators link to Merkel, and a letter by SPD lawmakers sent to the chancellor in 2016 that criticizes her handling of the refugee crisis. The data connected to Merkel was not considered sensitive, Fietz said.

    The data, which Germany is trying to remove, also includes what appears to be chat transcripts from Economy Minister Peter Altmaier. More mundane material includes rental-car contracts and letters, some of them several years old. The attack appears to have affected all major German political parties with the exception of the populist Alternative for Germany.

    https://www.bloomberg.com/news/articles/2019-01-04/hackers-release-personal-data-of-hundreds-of-german-politicians

  • Blur password manager exposes 2.4M users on misconfigured AWS cloud instance

    While finding no evidence that the document had been accessed, Abine is nonetheless warning users that their accounts may have been compromised. Users are being asked to reset their master passwords for Blur and to set up two-factor authentication as an additional security measure.

    Blur is not the first password manager to have had security issues. LastPass was infamously hacked in 2015 before having to issue an urgent patch in 2017 after it was discovered that plugins related to the product could expose customer passwords.

    LastPass, though, was a different case because it was specifically targeted by hackers. The fact that a company offering password protection software would “accidentally” expose user data on an AWS S3 instance is a different level of incompetence.

    https://siliconangle.com/2019/01/03/blur-password-manager-exposes-2-4m-user-details-misconfigured-aws-instance/

Software/SaaS

  • Apple’s Precarious and Pivotal 2019

    Today, the stock is down nearly 10%. Tens of billions of dollars have been shaved off of Apple’s market cap, literally overnight. The company is now the 4th most valuable corporation in the world. That sounds like a great thing until you remember that until recently, it was the most valuable company in the world — and for much of the past several years, this was the case by far.

    Also:

    And then there’s the real standout part of the paragraph: “consumers adapting to a world with fewer carrier subsidies”. Once again, this translates into English as: we pushed the price of the iPhone too far. And whereas before, such prices were obfuscated by things like carrier contracts, that world is shifting. And Apple hasn’t shifted fast enough or strongly enough to account for this.

    https://500ish.com/apples-precarious-and-pivotal-2019-f4f8cea3993a

Datacenter/Hardware

  • Why the iPhone Is Finally Fading

    You’ve probably heard before that A.I. and voice are the future. That’s still on track to be true, even though it hasn’t happened overnight. (The future rarely does.) It’s coming first in the form of speakers such as Amazon’s Echo and Google’s Home, with Apple’s HomePod and others playing catch-up. While the big tech companies don’t yet report sales figures for these devices, studies show the market expanding rapidly, with nearly a quarter of U.S. households owning one as of last fall, according to Nielsen. Some analysts predict that figure will top 50 percent by 2022.

    Meanwhile, the sector is growing at rates reminiscent of smartphones’ early days. A report by Strategy Analytics estimated that Amazon’s Echo business grew 64 percent from 2017 to 2018, while Google’s Home sales boomed 420 percent. That’s before we even start counting all the other devices that are being sold with Alexa, Google Assistant, or other voice AI services built in, or the many more that are voice-compatible.

    https://slate.com/technology/2019/01/apple-iphone-decline-china-replacement-alexa-siri.html

Other

  • Salesforce’s Marc Benioff unplugged for two weeks, and had a revelation that could change the tech industry

    All that relaxation led Benioff to one big revelation: He’s too busy.

    Weeks at work are filled with dinners, parties, events and business council meetings exclusively for CEOs, meaning that if anyone from Salesforce is to attend, it has to be him. Meanwhile, he’s trying to run a 30,000-person company, build Salesforce towers across the globe, bolster his philanthropy, invest in start-ups, mentor other business leaders and become a louder voice on a number of social and political issues.

    https://www.cnbc.com/2018/12/30/salesforce-marc-benioff-talks-tech-ethics-time-magazine-and-vacation.html

  • The case for why Big Tech is violating antitrust laws

    The nearly 20-year-old case of US v. Microsoft illustrates how today’s tech giants are breaking the law. The court held that Microsoft used its monopoly power in “Intel-compatible desktop PC operating systems” to squash the Netscape browser by requiring computer makers to instead install Microsoft’s own Internet Explorer browser. Rather than competing on the merits, Microsoft used its monopoly power to try to take over the internet browser market. Ironically, if the Department of Justice had not sued Microsoft to stop its anticompetitive behavior, Google might not exist! After taking over the internet browser market, Microsoft could have required computer makers to use its own search engine, too.

    Google, Amazon and Facebook are following the same playbook. The tech giants have “platform privilege” — the incentive and ability to prioritize their own goods and services over those of competitors that depend on their platforms. By doing so, they contend they are improving their products and benefiting customers. An entrepreneur can create a superior product or service and still get crushed because Big Tech is controlling the game and playing it, too.

    https://www.cnn.com/2019/01/02/perspectives/big-tech-facebook-google-amazon-microsoft-antitrust/index.html