Tag: Microsoft

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Big Tech’s Job Eliminations

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

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

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

Additional job eliminations in the last 6 months:

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

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

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

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

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Supplier Report: 6/19/2020


Photo by Scott Webb on Unsplash

After IBM took a stance on restricting facial recognition software, their competitors Microsoft and Amazon did the same.

While the move is being applauded by many, Amazon’s decision seems like a panic reaction. People have been asking Amazon to back off of providing this technology for a few years due to bias flaws.

And unlike IBM and Microsoft who offered more nuanced responses, Amazon announced they would restrict the technology for only a year (instead of committing to getting it right or not using it at all). It is another disappointing response from a company that has been struggling to get things right for the last 3 months.

Acquisitions/Investments

  • IBM could make another big cloud acquisition: Analyst

    The cloud was a key driver in IBM’s buy of Red Hat. And if Cloudera – which like Red Hat has an open source focus – is indeed for sale then IBM might make a play as it continues to fight for marketshare with Amazon Web Services, Microsoft and Google.

    IBM “is the most likely strategic buyer, especially given the partnership between Cloudera and IBM,” wrote analyst Rishi Jaluria at D.A. Davidson. He noted that a deal would complement the Red Hat buy.

    But CloudEra won’t come cheaply. It has a $2.9 billion dollar market cap, and shares climbed to $12 on Tuesday after Bloomberg reported that the company is open to a takeover.

    https://www.wraltechwire.com/2020/06/10/ibm-could-make-another-big-cloud-acquisition-analyst/

Cloud

  • Oracle Q4 Earnings: Larry Ellison Will Focus on 5 Things

    For the past couple of quarters, Ellison—a master storyteller—has used Oracle’s earnings call to claim that his Cloud ERP app has so much momentum that a number of SAP’s biggest and longest-term customers are on the verge of tossing out SAP and installing Oracle Cloud ERP. But with each telling, the claims get a bit more vague. My hope is that Ellison will avoid the subject unless he’s able to share some specific names and details.

    However, the Oracle-SAP wars have been raging for decades, and the latest battles seem to now be centered around which company can be more convincing in persuading existing on-premises customers to move to the cloud. As I noted above, SAP has flat-out denied that any of its big ERP customers are on the verge of jumping ship to Oracle. In fact, CEO Christian Klein recently told me that not only are none of his customers jumping to Oracle, but also SAP’s cloud ERP business has far more customers than Oracle’s.

    https://cloudwars.co/oracle/oracle-q4-earnings-larry-ellison-will-focus-on-5-things-including-sap/

Security/Privacy

  • IBM ends all facial recognition business as CEO calls out bias and inequality

    IBM firmly opposes and will not condone uses of any technology, including facial recognition technology offered by other vendors, for mass surveillance, racial profiling, violations of basic human rights and freedoms, or any purpose which is not consistent with our values and Principles of Trust and Transparency. We believe now is the time to begin a national dialogue on whether and how facial recognition technology should be employed by domestic law enforcement agencies.

    https://techcrunch.com/2020/06/08/ibm-ends-all-facial-recognition-work-as-ceo-calls-out-bias-and-inequality/

  • Amazon bans police use of facial recognition technology for one year

    While the House Committee on Oversight and Reform has held a number of hearings on the use of facial recognition technology, it has yet to introduce a bill regulating the technology. Rep. Jimmy Gomez, D-Ca., who serves on the committee told CNBC in a phone interview he is hopeful Congress will pass a bill this year.

    “It’s a good first step, but it’s still not enough,” said Rep. Gomez of Amazon’s announcement.

    “They’re saying, ‘we’ve been asking Congress to put guardrails on the use of this technology,’ – but every time we tried to get more and more data they stalled – and we had to have hearings to make movement on the issue.”

    https://www.cnbc.com/2020/06/10/amazon-bans-police-use-of-facial-recognition-technology-for-one-year.html

  • Microsoft joins Amazon, IBM in pausing face scans for police

    Microsoft’s president and chief counsel, Brad Smith, announced the decision and called on Congress to regulate the technology during a Washington Post video event on Thursday.

    “We’ve decided we will not sell facial recognition technology to police departments in the United States until we have a national law in place, grounded in human rights, that will govern this technology,” Smith said.

    Also…

    Microsoft, Amazon and IBM are calling on Congress to set national rules over how police use facial recognition — something that’s now being considered as part of a police reform package sparked by the protests following Floyd’s death.

    “If all of the responsible companies in the country cede this market to those that are not prepared to take a stand, we won’t necessarily serve the national interest or the lives of the black and African American people of this nation well,” Smith said. “We need Congress to act, not just tech companies alone.”

    https://www.houstonchronicle.com/news/article/Microsoft-joins-Amazon-IBM-in-pausing-face-scans-15333452.php

Other

  • Two states are reportedly looking into how Amazon treats sellers

    California and Washington state investigators have reportedly been looking into how the company treats third-party sellers, particularly whether it’s using the data it collects to compete directly against them. The Times says the Washington attorney general’s office is also investigating whether Amazon is making it difficult for sellers to list their products on other websites.

    WSJ reported back in April that the e-commerce giant scooped up data from its sellers — product information such as prices, total sales and how much vendors spend on marketing and shipping — to launch competing products under its private label division. In response to that report, US Senator Josh Hawley requested for a criminal antitrust investigation into the claims and the House Judiciary Committee called on Jeff Bezos to testify before Congress.

    https://www.engadget.com/amazon-california-washington-investigation-055430238.html

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Supplier Report: 6/5/2020

As COVID-19 continues to disrupt the global economy, some companies are taking advantage and making acquisitions as other organizations are announcing expense cuts.  IBM is backing out of their relationship with WeWork in NYC and Google is rescinding offers to 2,000 consultants.

Meanwhile, Google’s legal issues in the United States are expanding as Arizona is suing the company due a lack of privacy controls.

Acquisitions/Investments

  • Cisco acquires ThousandEyes for around $1 billion to make deeper push into software

    ThousandEyes will be part of Cisco’s new Networking Services business unit, which is run by Todd Nightingale, the company said in the release. The purchase follow’s Cisco’s 2017 acquisition of AppDynamics for $3.7 billion, which brought in software that helps companies spot bugs in their apps and quickly fix them.

    In addition to AppDynamics, Cisco’s prior software deals include the $2.35 billion purchase of Duo Security in 2018, to bulk up in the authentication space, and the $1.9 billion acquisition of Broadsoft in 2017, to add technology for contact centers.

    https://www.cnbc.com/2020/05/28/cisco-acquires-thousandeyes-to-make-deeper-push-into-software.html

  • Apple just bought another AI startup to help Siri catch up to rivals Amazon and Google

    Inductiv Inc.’s technology automates the process of correcting flaws in data through the use of artificial intelligence. It’s one of several acquisitions Apple has made recently, following its purchase of the popular weather app DarkSky and virtual reality entertainment platform NextVR.

    Although Apple doesn’t disclose the purpose behind its acquisitions, Bloomberg reports that Inductiv’s engineering team is working on Siri, data science, and machine learning. Apple launched Siri back in 2011 on the iPhone 4S, long before Amazon introduced Alexa and Google launched the Google Assistant.

    https://www.businessinsider.com/apple-buys-ai-startup-inductiv-siri-catch-up-amazon-google-2020-5

  • What Hertz Had Under the Hood Wasn’t Pretty

    The proximate cause of Hertz’s demise was of course the sudden collapse in bookings caused by coronavirus travel restrictions. The company’s monthly revenue fell 73% year-on-year in April, a shortfall that even the most resilient companies would struggle to withstand for long.

    But Hertz’s complicated financial plumbing contributed to it becoming one of the most high-profile companies to seek protection from creditors during the corona crisis. In the decade preceding its collapse, Hertz took on too much debt, participated in overpriced M&A and was accused of playing accounting games to pad its earnings.

    So when disaster struck and a request for a government bailout was rejected (rightly in my view considering top shareholder Carl Icahn is worth some $18 billion), Hertz was already standing far too close to the precipice. Regrettably Covid-19 will probably expose more of this type of corporate frailty, both in America and around the world.

    Hertz’s debt binge began when it was acquired by private equity firms from Ford Motor Co. in 2005; the new owners quickly took out a $1 billion dividend. Piling on debt juiced the potential returns for the owners and helped pay the inflated $2.3 billion price tag for the Dollar and Thrifty brands in 2012, which Hertz struggled to integrate.

    https://www.bloomberg.com/opinion/articles/2020-05-26/why-even-carl-icahn-couldn-t-save-hertz-from-chapter-11

Artificial Intelligence/Robotics

  • A Case for Cooperation Between Machines and Humans

    In contrast, Dr. Shneiderman has sketched out a two-dimensional alternative that allows for both high levels of machine automation and human control. With certain exceptions such as automobile airbags and nuclear power plant control rods, he asserts that the goal of computing designers should be systems in which computing is used to extend the abilities of human users.

    This approach has already been popularized by both roboticists and Pentagon officials. Gill Pratt, the head of the Toyota Research Institute, is a longtime advocate of keeping humans “in the loop.” His institute has been working to develop Guardian, a system that the researchers have described as “super advanced driver assistance.”

    “There is so much that automation can do to help people that is not about replacing them,” Dr. Pratt said. He has focused the laboratory not just on car safety but also on the challenge of developing robotic technology designed to support older drivers as well.

    Similarly, Robert O. Work, a deputy secretary of defense under Presidents Trump and Barack Obama, backed the idea of so-called centaur weapons systems, which would require human control, instead of A.I.-based robot killers, now called lethal autonomous weapons.

    https://www.nytimes.com/2020/05/21/technology/ben-shneiderman-automation-humans.html

  • Microsoft sacks journalists to replace them with robots

    The team working on the Microsoft site did not report original stories but still exercised editorial control, selecting stories produced by other news organisations – including the Guardian – and editing content and headlines where appropriate to fit the format. The articles were then hosted on Microsoft’s website, with the tech company sharing advertising revenue with the original publishers.

    Manual curation of news stories also ensured that headlines were clear and appropriate for the format, while encouraging a spread of political opinions and avoiding untrustworthy stories, while highlighting interesting articles from smaller outlets.

    Some of the journalists now facing redundancy had longstanding experience in the industry, while for others it offered a foot in the door and a job in an industry which has seen wave after wave of cuts. They now face a tough challenge to get jobs elsewhere when the whole industry is looking to cut costs. Other teams around the world are expected to be affected by Microsoft’s decision to automate the curation of its news sites.

    https://www.theguardian.com/technology/2020/may/30/microsoft-sacks-journalists-to-replace-them-with-robots

Security/Privacy

  • Arizona sues Google claiming it illegally tracked Android users

    The state argued that Google made it too complicated to completely disable tracking, forcing users to dig into granular Android system settings. “When consumers try to opt out of Google’s collection of location data, the company is continuing to find misleading ways to obtain information and use it for profit,” Brnovich told The Post. The state is asking the court to force Google to pay back Arizona profits earned through ads that monetized the data, as well as potential fines of up to $10,000 per violation.

    “The Attorney General and the contingency fee lawyers filing this lawsuit appear to have mischaracterized our services,” a Google spokesperson told Engadget in a statement. “We have always built privacy features into our products and provided robust controls for location data. We look forward to setting the record straight.”

    https://www.engadget.com/arizona-google-lawsuit-android-smartphone-tracking-080511589.html

  • Chrome: 70% of all security bugs are memory safety issues

    Half of the 70% are use-after-free vulnerabilities, a type of security issue that arises from incorrect management of memory pointers (addresses), leaving doors open for attackers to attack Chrome’s inner components.

    The percentage was compiled after Google engineers analyzed 912 security bugs fixed in the Chrome stable branch since 2015, bugs that had a “high” or “critical” severity rating.

    The number is identical to stats shared by Microsoft. Speaking at a security conference in February 2019, Microsoft engineers said that for the past 12 years, around 70% of all security updates for Microsoft products addressed memory safety vulnerabilities.

    https://www.zdnet.com/article/chrome-70-of-all-security-bugs-are-memory-safety-issues/

Other

  • IBM Leaving 70K SF WeWork Outpost in Union Square

    IBM will ditch its office at 88 University Place — which it has occupied for three years for its marketing division — after Labor Day and already gave notice to WeWork it was leaving, Business Insider reported.

    “The company continually looks at our real estate to ensure it services the needs of IBMers and how we serve our clients,” Doug Shelton, a spokesman for IBM, said in a statement. “WeWork was a terrific partner and we’re very grateful for the WeWork staff at 88 University, who served us during our tenure at that site.”

    A spokesman for WeWork did not immediately respond to requests for comment.

    https://commercialobserver.com/2020/05/ibm-leaving-70k-sf-wework-outpost-in-union-square/

  • Google reportedly rescinds 2,000 contract worker jobs

    The 2,000 contract positions would have been located across the globe, according to the Times, and they represent a small fraction of Google’s workforce. The company reportedly has more than 130,000 contractors on top of 123,000 employees.

    Still, it speaks to the significant hiring slowdown that Porat telegraphed last month. The pandemic has caused a slowdown in the advertising market, which is where Google makes the vast majority of its money. Revenue from advertising was still up year over year for Google’s first quarter, but growth was slowing.

    These rescinded offers pose bigger problems for the people who are now out of work. The Times reports that some people left full-time positions to accept the contract jobs with Google. Because they left their positions voluntarily, they may not be eligible for unemployment benefits.

    https://www.theverge.com/2020/5/29/21274500/google-contract-job-workers-coronavirus-ad-revenue-slowdown

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Supplier Report: 5/22/2020

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

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

Acquisitions/Investments

  • Microsoft acquires Metaswitch in telecom push

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

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

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

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

  • Restaurants should fear an Uber-Grubhub merger

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

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

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

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

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

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

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

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

Software/SaaS

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

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

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

  • Chrome will start blocking resource-demanding ads in August

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

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

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

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

Infrastructure/Hardware

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

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

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

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

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

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

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

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

Other

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

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

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

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

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

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

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

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

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

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

  • Eric Schmidt reportedly left Google in February

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

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

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

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Supplier Report: 5/15/2020


Photo by Frida Bredesen on Unsplash

Another sign that a recovery is starting… companies are starting to buy other companies again. Microsoft and Zoom are on the move. Intel announced an acquisition last week. But Covid-19 is also being used to rethink and get out of existing deals (see SoftBank).

Meanwhile, Amazon can’t get over their loss to Microsoft for the Pentagon’s JEDI contract… and they are going after each other on their own personal blogs (this is high school level drama).

Acquisitions/Investments

  • Buyers’ Remorse Is Catching in the Coronavirus Era

    Several multibillion-dollar deals have already been scuttled. SoftBank Group Corp. has pulled out of a $3 billion promise to buy stock from employees of WeWork, while Mirae Asset Global Investments Co. canceled the $5.8 billion purchase of 15 U.S. luxury hotels from Anbang Insurance Group Co. WeWork co-founder Adam Neumann and Dajia Insurance Group (which took over Anbang’s assets after it was seized by the Chinese government) both contend that the buyers have used legally faulty pretexts to justify their actions, and they are suing.

    Using the fine print to renege on a deal isn’t pretty, but it’s understandable in an environment where virus-related lockdowns have ravaged economies across the world. Forecasts and valuation estimates predating the pandemic have been rendered all but meaningless.

    https://www.bloomberg.com/opinion/articles/2020-05-05/m-a-deals-founder-as-coronavirus-fuels-buyer-s-remorse

  • Microsoft to Buy Israeli Cybersecurity Startup CyberX

    The U.S. software giant Microsoft is expected to announce in the next few days that it has signed a deal to acquire the Israeli industrial cybersecurity startup CyberX for what sources say will be $165 million.

    TheMarker revealed before the coronavirus crisis that the two sides were in negotiations. They are now in the midst of getting signatures on the deal from all of CyberX’s shareholders.

    CyberX has developed an internet of things cybersecurity platform for factories and industrial control systems, using machine learning to analyze real-time activities and identifying anomalies. The IoT segment is different in many respects from cybersecurity for computers and servers, where Microsoft is active.

    https://www.haaretz.com/israel-news/business/.premium-microsoft-to-buy-israeli-cybersecurity-startup-cyberx-1.8823367

  • Zoom buys Keybase — its first acquisition — as part of 90-day plan to fix security flaws

    The acquisition of the 25-person start-up is the latest move in a 90-day plan that Zoom announced on April 1 to fix its security flaws. Zoom CEO Eric Yuan told CNBC the company needed a solution for users who are demanding the highest level of privacy and certainty that uninvited participants have no access to their conversations.

    When Keybase is implemented, the Zoom user who schedules a meeting will be able to choose end-to-end encryption. That setting will prevent anyone from calling in by phone, which is one way people can access meetings, and will disable cloud-based recording of the chat. Yuan said it’s critical that users know that the encryption key is not on Zoom’s servers, so the company has no access to the contents of the call.

    https://www.cnbc.com/2020/05/07/zoom-buys-keybase-in-first-deal-as-part-of-plan-to-fix-security.html

Cloud

  • IBM CEO Lays Out New Initiatives in Cloud, AI

    Mr. Krishna said the company believes the marketplace adoption of hybrid cloud technology is only about 20% complete, and that the adoption of AI is about 4% complete.

    The pandemic will “dramatically accelerate” the adoption of hybrid-cloud and AI, Mr. Krishna said, as companies turn to cloud services to help their employees work and serve customers remotely, as well as to AI to automate certain types of work.

    https://www.wsj.com/articles/ibm-ceo-lays-out-new-initiatives-in-cloud-ai-11588651261

  • Bid high, lose, try again. Amazon continues to push for a JEDI re-do

    We received notice on Tuesday that Amazon has filed yet another protest – this time, out of view of the public and directly with the DoD – about their losing bid for the JEDI cloud contract. Amazon’s complaint is confidential, so we don’t know what it says. However, if their latest complaint mirrors the arguments Amazon made in court , it’s likely yet another attempt to force a re-do because they bid high and lost the first time.

    The only thing that’s certain about Amazon’s new complaint is that it will force American warfighters to wait even longer for the 21st-century technology they need – perpetuating Amazon’s record of putting its own interests ahead of theirs.

    This latest roadblock is disappointing but not surprising. As my colleague Jon Palmer made clear in a recent blog, Amazon wants a do-over on JEDI . As Jon wrote, “Amazon would have you believe that it lost the award because of bias at the highest levels of government. But Amazon, alone, is responsible for the pricing it offered. As the government explained in its brief: ‘AWS and Microsoft each had a fair chance to build pricing for the entire procurement, based on their overall business pricing.’ Amazon did build its pricing for the entire procurement, and it wasn’t good enough to win.”

    https://blogs.microsoft.com/on-the-issues/2020/05/07/amazon-jedi-re-do-dod/
    Amazon and Microsoft are trash talking each other over a DoD contract

    Drew Herdener, Amazon’s Vice President of Worldwide Communications responded in a blog post of his own today. It starts out level-headed: “Since we filed our protest, we’ve been clear in our intent: we don’t think the JEDI award was adjudicated fairly, we think political interference blatantly impacted the award decision, and we’re committed to ensuring the evaluation receives a fair, objective, and impartial review.”

    But then, things take a hard left turn. Herdener called Microsoft’s blog posts “self-righteous and pontificating,” and went on to state, “Nobody knowledgeable and objective believes they have the better offering. And, this has been further underscored by their spotty operational performance during the COVID-19 crisis (and in 2020 YTD).” Herdener even attacked the DoD: “This could have been easily avoided if [the DoD] had chosen to be responsive in any of the multiple requests we’ve made in the last two weeks.”

    https://www.engadget.com/amazon-microsoft-jedi-fight-154208730.html

Other

  • WeWork co-founder Adam Neumann accuses SoftBank of abusing its power in new lawsuit

    The lawsuit, filed in Delaware Court of Chancery, included a motion to consolidate his case with a lawsuit filed last month by a Special Committee of WeWork’s board. Both lawsuits focus on SoftBank Group and its Vision Fund’s decision to back out of a deal to buy shares of the co-working company.

    SoftBank Group pulled its $3 billion tender offer for WeWork shares April 1, citing COVID-19’s impact on the business but also closing conditions not being met. Specifically, it pointed to outstanding regulatory investigations, a growing body of litigation against the company and the failure to restructure a joint venture in China as reasons to torpedo the agreement.

    “SoftBank will vigorously defend itself against these meritless claims,” Rob Townsend, senior vice president and chief officer at SoftBank, said in a statement. “Under the terms of our agreement, which Adam Neumann signed, SoftBank had no obligation to complete the tender offer in which Mr. Neumann – the biggest beneficiary – sought to sell nearly $1 billion in stock.”

    https://techcrunch.com/2020/05/04/wework-co-founder-adam-neumann-accuses-softbank-of-abusing-its-power-in-new-lawsuit/

  • Uber lays off 14 percent of its workforce in COVID-19-related cost-cutting

    Uber will lay off 3,700 full-time employees, or around 14 percent of its global workforce, the company said in filings with the US Securities and Exchange Commission. In addition, Uber CEO Dara Khosrowshahi will forgo his salary for the rest of the year as the company continues to struggle in response to the COVID-19 pandemic.

    The layoffs are expected to hit the company’s customer support and recruiting divisions. Uber says it will incur approximately $20 million in severance and other termination-related expenses. Last week, The Information reported that Uber’s top executives were considering laying off as many as 20 percent of the company’s workforce.

    https://www.theverge.com/2020/5/6/21249131/uber-layoffs-coronavirus-pandemic-cost-cutting-ceo-salary