Tag: Microsoft

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: 1/4/2019


This edition of Supplier Report is a bit more reflective than forward facing thanks to several end-of-year posts. This week we get some context on how Huawei grew and how Amazon is potentially hiding its growth. There is speculation about acquisitions and what some companies are doing with their excess cash.

And I can’t properly close out 2018 without some Larry Ellison news!

Acquisitions

  • Will Microsoft Acquire Oath (Verizon Media Group)?

    The business unit, Verizon Media Group, faces tough competition. Revenue for the division fell from $2.2 billion in the fourth quarter of 2017 to $1.8 billion in the third quarter of 2018.

    Verizon CEO Hans Vestberg, who joined the business in August 2018, set out to restructure the company. He told investors during the third quarter investors’ call that he doesn’t expect to meet the company’s “previous target of $10 billion of [annual] revenue [for Oath] by 2020.”

    Apparently, the company really just wants to build Oath’s technical capabilities such as artificial intelligence, augmented reality, and virtual reality into its other businesses across Verizon. But the company could license those patents from Microsoft, if they choose to sell the assets to the Redmond, Washington-based company.

    https://www.mediapost.com/publications/article/329813/will-microsoft-acquire-oath-verizon-media-group.html

  • 3 Tech Companies That Are Spending Billions to Buy Back Their Own Stock

    Earlier this year, memory specialist Micron announced a share-repurchase program good for $10 billion. While that’s not quite in the same ballpark as Microsoft’s $40 billion buyback, let alone Apple’s enormous $100 billion share-repurchase authorization, the size of a buyback needs to be considered in the context of a company’s market capitalization. Microsoft’s and Apple’s market capitalizations are each north of $700 billion, while Micron’s is currently around $35 billion.

    https://www.fool.com/investing/2018/12/30/3-tech-companies-that-are-spending-billions-to-buy.aspx

Artificial Intelligence

  • The Verge 2018 tech report card: AI

    This reckoning has been most visible as a parade of negative headlines about algorithmic systems. This year saw the first deaths caused by self-driving cars; the Cambridge Analytica scandal; accusations that Facebook facilitated genocide in Myanmar; the revelation that Google helped the Pentagon train drone surveillance tools; and ethical questions over the tech giant’s human-sounding AI assistant. The research group AI Now described 2018 as a year of “cascading scandals” for the field, and it’s an accurate, if disheartening, summary.

    https://www.theverge.com/2018/12/30/18137429/2018-tech-recap-artificial-intelligence-robot-machine-learning-facial-recognition

Cloud

  • What Amazon Isn’t Telling Investors About Its Revenue

    The rule doesn’t require companies to break down their revenue in any specific way. But if they discuss particular sources of revenue in earnings announcements or conference calls, or if they provide their top decision-makers with particular details about revenue, such as how individual products are selling, then they are supposed to consider breaking out the revenue on that basis for investors too.

    In Amazon’s case, the SEC noted in an August letter that the company said publicly it had topped 100 million paid Prime members globally and shipped more than five billion items with Prime world-wide in 2017. It asked Amazon to disclose its percentage of sales attributable to Prime members.

    Amazon declined, telling the SEC it didn’t believe sales to Prime customers was useful information and that Prime membership is “only one element” of its business. An Amazon spokeswoman declined to comment further.

    https://www.wsj.com/articles/what-amazon-isnt-telling-investors-about-its-revenue-11545480000

Software/SaaS

  • How Facebook Keeps Messenger From Crashing on New Year’s Eve

    In addition to shifting loads, the Messenger team has developed other levers that it can pull “if things get really bad,” says Ahdout. Every new message sent to a server goes into a queue as part of a service called Iris. There, messages are assigned a timeout—a period of time after which, that message will drop out of the queue to make room for new messages. During a high-volume event, this allows the team to quickly discard certain types of messages, such as read receipts, to focus its resources on delivering ones that users have composed.

    “We set up our systems so that if it comes to that, they start shedding the lowest-priority traffic,” says Ahdout. “So if it came to it, Iris would rather deliver a message and drop the read receipt, rather than drop the message and deliver the read receipt.”

    https://spectrum.ieee.org/tech-talk/computing/software/how-facebooks-software-engineers-prepare-messenger-for-new-years-eve

Datacenter/Hardware

  • Intel to get 700 million shekel grant for Israel expansion

    Israel will give Intel Corp (INTC.O) a 700 million shekel ($185 million) grant in return for a planned $5 billion expansion of its production operations in Israel.

    Intel is one of the biggest employers and exporters in Israel, where many of its new technologies are developed. Earlier this year it submitted plans to upgrade its Kiryat Gat manufacturing plant in southern Israel.

    https://www.reuters.com/article/us-israel-intel-idUSKCN1OO0JD

  • 911 emergency services go down across the US after CenturyLink outage

    CenturyLink, one of the largest telecommunications providers in the U.S., provides internet and phone backbone services to major cell carriers, including AT&T and Verizon. Data center or fiber issues can have a knock-on effect to other companies, cutting out service and causing cell site blackouts.

    In this case, the outage affected only cellular calls to 911, and not landline calls.

    Several states sent emergency alerts to residents’ cell phones warning of the outage.

    https://techcrunch.com/2018/12/28/911-service-outage-centurylink/

Other

  • How Huawei Took Over the World

    In its early days, Huawei was accused of stealing technology, including by Cisco Systems Inc. in a 2003 lawsuit, which Huawei settled without admitted wrongdoing. Now it has the biggest R&D budget of any tech company in China, pouring $13 billion last year into developing its own technologies, outpacing Intel Corp. and spending almost as much as Google parent Alphabet Inc. Huawei says that 80,000 people—45% of its employees—work on R&D. They make chips, design phones and work on 5G technology.

    https://www.wsj.com/articles/how-huawei-took-over-the-world-11545735603

  • JD.com Tries to ‘Change the Narrative’ With Business Restructuring

    Investors have become increasingly worried about Mr. Liu’s unusually tight grip over his company. He controls nearly 80% of the company’s voting rights and the board can’t meet without him unless he recuses himself. His concentration of authority became a focus of concern among some analysts after Mr. Liu’s brief arrest in August and during the subsequent months when accusations against him were pending.

    JD.com’s American depositary receipts have fallen 49.1% in the past year, closing at $21.10 on Wednesday. While shares of the nation’s large tech firms have been beaten down by concerns about China’s slowing economy and government regulation, JD.com’s fall was especially dramatic. Some analysts attributed the swoon to the uncertainty surrounding a criminal prosecution.

    https://www.wsj.com/articles/jd-com-to-change-the-narrative-with-business-restructuring-11545902638?ns=prod/accounts-wsj

  • Tesla adds Oracle founder Larry Ellison to board of directors

    Tesla is Ellison’s second-largest investment as of October, Ellison said then. Ellison owns 3 million shares in the company, according to the announcement. He also said that he and Musk are close friends. Wilson-Thompson spent 17 years as an executive at the Kellogg Company, and currently serves as the executive vice president and global chief human resources officer of the Walgreens Boots Alliance, the holding company that sits above Walgreens.

    Tesla was required to add two new independent board members as part of the settlement Elon Musk and the company signed with the Securities and Exchange Commission (SEC) earlier this year. The SEC had charged Musk with securities fraud in September over the “false and misleading” statements he made on Twitter in August, when he suddenly announced plans to turn Tesla back into a privately held company. He quickly settled with the agency two days after rejecting its initial offer.

    https://www.theverge.com/2018/12/28/18158832/tesla-larry-ellison-board-of-directors-oracle-founder

Photo by Thomas Lipke on Unsplash

Posted on

Supplier Report: 12/7/2018

FAANG companies continue to struggle with their employees’ perceptions of long-term business goals. Google once again is facing a public disagreement between employees over their plans for China – with some employees for and others against Project Dragonfly.

In the wake of Diane Greene’s departure at Google. insiders are saying that the company needs to start purchasing companies quickly (and that they already missed out on critical acquisitions that would better enable competition with AWS and Microsoft).

Acquisitions

  • United Tech to Break Itself Into Three Companies

    The company, which makes everything from Otis escalators to Pratt & Whitney jet engines, said Monday that it plans to spin off to shareholders its Otis division and Carrier building systems businesses. The Wall Street Journal had earlier reported on the plans to break apart.

    The separation is expected to be completed in 2020 and leave UTC as a pure-play aerospace company, following its acquisition of airplane-parts maker Rockwell Collins Inc. That $23 billion cash-and-stock deal closed Monday after lengthy antitrust reviews in the U.S. and China.

    https://www.wsj.com/articles/united-technologies-to-separate-into-three-independent-companies-1543272920

  • Logitech isn’t buying Plantronics after all

    “Logitech approached Plantronics regarding a potential acquisition and, consistent with the Plantronics Board’s fiduciary duties, the Company entered into discussions with Logitech,” Plantronics’ own statement reads. “Those discussions have ended. Plantronics will not comment further on this matter.”

    A $2.2 billion deal would have been Logitech’s biggest acquisition to date by far, although it wouldn’t necessarily have reflected a particularly high valuation of Plantronics’ consumer business. Earlier this year Plantronics itself bought out video-conferencing solutions maker Polycom for $2 billion, which had to have been the main factor in Logitech’s willingness to pay so much.

    https://www.theverge.com/circuitbreaker/2018/11/25/18111967/logitech-plantronics-deal-acquisition-off

  • Billion-dollar deal: Google pays $1 billion for huge Mountain View business park

    Google’s Mountain View purchase means that in the two years since the search giant began to collect properties in downtown San Jose for a proposed transit village, the company has spent at least $2.83 billion in property acquisitions in Mountain View, Sunnyvale, downtown San Jose and north San Jose alone.

    Adding to the eye-popping numbers: Google’s spending activity in those four markets reaches $3 billion when including the company’s pending purchase in downtown San Jose of several government-owned parcels, along with the minimum value of a big set of surface parking lots that Google intends to buy from Trammell Crow, also downtown near its proposed transit village.

    https://www.mercurynews.com/2018/11/26/billion-dollar-deal-google-pays-1-billion-for-huge-mountain-view-business-park/

Cloud

  • Google Cloud Needs Acquisitions To Challenge Amazon, Analyst Says

    “It’s time to tap Alphabet’s piggy bank to boost GCP (Google Cloud Platform),” Baird analyst Colin Sebastian said in a report Monday. “As Google seeks to carve out greater share in the expanding enterprise cloud services market, we believe the company should embark on a more aggressive shopping spree.”

    The Google cloud unit should mull acquisitions of companies such as Workday(WDAY), ServiceNow (NOW), Atlassian (TEAM) and Salesforce.com (CRM), Sebastian said.

    https://www.investors.com/news/technology/google-cloud-acquisitions-enterprise-market/

  • It turns out some Google staff do believe in controversial plan to re-enter China

    Excerpt from a letter written by a Google employee:
    Dragonfly is well aligned with Google’s mission. China has the largest number of Internet users of all countries in the world, and yet, most of Google’s services are unavailable in China. This situation heavily contradicts our mission, “to organize the world’s information and make it universally accessible and useful”. While there are some prior success, Google should keep the effort in finding out how to bring more of our products and services, including Search, to the Chinese users.

    https://techcrunch.com/2018/11/28/google-dragonfly-letter/
    Except…
    We are Google employees. Google must drop Dragonfly.

    Our opposition to Dragonfly is not about China: we object to technologies that aid the powerful in oppressing the vulnerable, wherever they may be. The Chinese government certainly isn’t alone in its readiness to stifle freedom of expression, and to use surveillance to repress dissent. Dragonfly in China would establish a dangerous precedent at a volatile political moment, one that would make it harder for Google to deny other countries similar concessions.

    https://medium.com/@googlersagainstdragonfly/we-are-google-employees-google-must-drop-dragonfly-4c8a30c5e5eb

  • IBM CEO Ginni Rometty Criticizes Big Internet Platforms for Mishandling Customers’ Data

    “The genesis of the trust crisis is the irresponsible handling of personal data by a few dominant consumer-facing platforms,” Ms. Rometty said Monday. The websites “have more power to shape public opinion than newspapers or the television ever had, yet they face very little regulation or liability.”

    “If there are specific companies that misbehave, steps need to be taken,” she said. “I would use a regulatory scalpel, not a sledgehammer” that affects the whole industry.

    https://www.wsj.com/articles/ibm-ceo-ginni-rometty-criticizes-rivals-for-mishandling-customers-data-1543257453

Security

  • Marriott reveals massive database breach affecting up to 500 million hotel guests

    Marriott is revealing a massive database breach today, affecting up to 500 million guests of its Starwood hotels the company first acquired in 2016. A security investigation has concluded that there was “unauthorized access” to a database holding hotel guest records. “Marriott learned during the investigation that there had been unauthorized access to the Starwood network since 2014,” says a statement from the company. The Starwood security breach affects a number of branded hotels owned by Marriott, including W Hotels, Sheraton, St. Regis, Westin, and more.

    The breach includes 327 million records of “some combination” of name, mailing address, phone number, email address, passport number, Starwood Preferred Guest (“SPG”) account information, date of birth, gender, arrival and departure information, reservation date, and communication preferences.

    https://www.theverge.com/2018/11/30/18119403/marriott-database-breach-starwood-hotels

  • Facebook might not sell user data, but internal documents suggest it certainly considered it

    Back in April, Facebook CEO Mark Zuckerberg told congress unequivocally that, “We do not sell data.” But these documents suggest that it was something that the company internally considered doing between 2012 and 2014, while the company struggled to generate revenue after its IPO.

    In one case, an employee suggested shutting down data access unless companies spent “$250k a year to maintain access.” In another email, a Facebook employee talked about having a “strategic” talk with Amazon to avoid a “disappointing conversation” about it getting less data in the future. Concerns raised by the Royal Bank of Canada about restricted data access prompted a Facebook employee to ask in an email about how much the bank had agreed to spend on advertising. It’s unclear whether these emails were sent by one or multiple staff members.

    https://www.theverge.com/2018/11/29/18117582/facebook-six4three-internal-documents-emails-selling-user-data

  • Google accused of GDPR privacy violations by seven countries

    The complaints, which each group has issued to their national data protection authorities in keeping with GDPR rules, come in the wake of the discovery that Google is able to track user’s location even when the “Location History” option is turned off. A second setting, “Web and App Activity,” which is enabled by default, must be turned off to fully prevent GPS tracking.

    The BEUC claims that Google uses “deceptive practices” to get users to enable both these options, and does not fully inform users of what doing so entails. As such, consent is not freely given.

    https://www.theverge.com/2018/11/27/18114111/google-location-tracking-gdpr-challenge-european-deceptive

Software/SaaS

  • Amazon will reportedly sell software that reads medical records

    The program scans medical files to pick out relevant information such as the medical condition and patient’s procedures and prescriptions. While other algorithms that try to do the same thing have been stymied by doctors’ abbreviations, Amazon claims to have trained its system to recognize the idiosyncrasies in how doctors take notes, sources told the WSJ. The company had already developed and sold this same software to other businesses, including ones focused on travel booking and customer service. For Amazon, this is another move into the health care market on the heels of the retailer buying the online pharmacy PillPack in June.

    https://www.theverge.com/2018/11/27/18115077/amazon-electronic-health-records-software-text-analysis-medical

Datacenter/Hardware

  • Microsoft wins $480M military contract to outfit soldiers with HoloLens AR tech

    The company just won a $480 million military contract with the U.S. government to bring AR headset tech into the weapon repertoires of American soldiers.

    The two-year contract may result in follow-on orders of more than 100,000 headsets according to documentation describing the bidding process. One of the contract’s tag lines for the AR tech seems to be its ability to enable “25 bloodless battles before the 1st battle,” suggesting that actual combat training is going to be an essential aspect of the AR headset capabilities.

    https://techcrunch.com/2018/11/28/microsoft-wins-480m-military-contract-to-outfit-soldiers-with-hololens-ar-tech/

Other

  • US charges ex-Autonomy boss Mike Lynch with fraud over $11bn sale to HP

    Prosecutors have accused Lynch and former Autonomy vice president of finance Stephen Chamberlain of providing HP with false financial statements to make the company seem like a better deal to acquire than it actually was.

    Lynch faces up to 20 years in prison if he is successfully convicted on the 14 charges of conspiracy and fraud in a case filed by prosecutors in a federal court on Thursday. The DoJ is also asking that Lynch forfeit $815m if he’s convicted.

    https://www.zdnet.com/article/us-charges-ex-autonomy-boss-mike-lynch-with-fraud-over-11bn-sale-to-hp/

  • Microsoft Is Worth as Much as Apple. How Did That Happen?

    But the more enduring and important answer is that Microsoft has become a case study of how a once-dominant company can build on its strengths and avoid being a prisoner of its past. It has fully embraced cloud computing, abandoned an errant foray into smartphones and returned to its roots as mainly a supplier of technology to business customers.

    That strategy was outlined by Satya Nadella shortly after he became chief executive in 2014. Since then, Microsoft’s stock price has nearly tripled.

    https://www.nytimes.com/2018/11/29/technology/microsoft-apple-worth-how.html

Photo by rawpixel on Unsplash

Posted on

Supplier Report: 11/23/2018

Amazon executed a master maneuver via the split HQ2 announcement. The company is moving into 3 locations (NYC, Virginia, and Nashville) and gained invaluable access and data about cities across the east coast.

While some are unhappy about the news (including the places that won), the company set a precedent with local governments about how to frame a RFP to get maximum shareholder value. The question is… will there be backlash?

Meanwhile Facebook continues to fail in their attempts to regain the public’s and government’s trust.

Acquisitions

  • Microsoft acquires AI and bot development house XOXCO

    Microsoft is acquiring conversational AI and bot development software vendor XOXCO Inc. for an undisclosed amount. Microsoft announced its acquisition plans on November 14, the same day it is going public with a number of other AI product and service announcements.

    Among its products are Howdy.ai, which Microsoft describes as “the first commercially available bot for Slack that helps schedule meetings.” Howdy assists with the creation of custom bots, including bots for work chat, bots for customer support and bots for marketing. XOXCO also sells Botkit, a collection of development tools for those working on GitHub. Microsoft has partnered with XOXCO for a number of years.

    https://www.zdnet.com/article/microsoft-acquires-ai-and-bot-development-house-xoxco/

  • Oracle buys SD-WAN company Talari Networks

    Financial terms of the deal were not disclosed.

    Talari’s main product is its Failsafe technology, which is an SD-WAN platform used to connect enterprise networks such as branch offices and data centers over large geographic distances. WAN connections traditionally required special proprietary hardware, but the SD-WAN movement does away with this by moving network control into the cloud using a software approach.

    https://siliconangle.com/2018/11/15/oracle-buys-sd-wan-company-talari-networks/

  • Analysts weighing in on $8B SAP-Qualtrics deal don’t see a game changer

    Tony Byrne, founder and principal analyst at Real Story Group, says he likes what Qualtrics brings to SAP, but he is not sure it’s quite as big a deal as McDermott suggests. “Qualtrics enables you to do more sophisticated forms of research which marketers certainly want, but the double benefit is that — unlike SurveyMonkey and others — Qualtrics has experience on the digital workplace side, which could complement some of SAP’s HR tooling.” But he adds that it’s not really the central CEM piece, and that his company’s research has found that SAP still has holes, particularly when it comes to marketing tools and technologies (MarTech).

    https://techcrunch.com/2018/11/12/analysts-weighing-in-on-8b-sap-qualtrics-deal-dont-see-a-game-changer/

  • Kofax to buy Nuance’s imaging division for $400M in cash

    The acquisition is a notable move for Kofax — itself acquired by Thoma Bravo last year in a $1.5 billion deal — as it continues to build up its business in Robotic Process Automation (RPA), the area of enterprise IT services that uses machine learning, computer vision and other AI-based tools to bring automation to repetitive or mundane back-office tasks that would have in the past been done by humans. (The idea is that this frees up the humans to make more sophisticated assessments in specific cases, or focus on entirely different tasks.)

    https://techcrunch.com/2018/11/12/kofax-to-buy-nuances-imaging-division-for-400m-in-cash/

Artificial Intelligence

  • Amazon Says It Has Over 10,000 Employees Working on Alexa, Echo

    Amazon announced its decision Tuesday on those two locations, after its yearlong review of possible cities to establish a second headquarters. Mr. Limp said Amazon picked them because of the availability of talent.

    “The tie went to where we could recruit and where people would want to live,” Mr. Limp said.

    Amazon said in September 2017 it had 5,000 employees working on Alexa and Echo. The company’s total workforce has grown 13% to more than 600,000 over the past year.

    https://www.wsj.com/articles/amazon-says-it-has-over-10-000-employees-working-on-alexa-echo-1542138284

  • Did IBM overhype Watson Health’s AI promise?

    In July, the healthcare news publication Stat published a report claiming “internal IBM documents” showed the Watson supercomputer often spit out erroneous cancer treatment advice and that company medical specialists and customers identified “multiple examples of unsafe and incorrect treatment recommendations,” even as IBM was promoting its AI technology.

    Stat cited several slide decks it had obtained from a presentation made by IBM Watson Health’s deputy chief health officer in 2016. The slides mostly blamed problems on the training of Watson by IBM engineers and staff at the Memorial Sloan Kettering Cancer Center (MSKCC).

    https://www.computerworld.com/article/3321138/healthcare-it/did-ibm-put-too-much-stock-in-watson-health-too-soon.html

Cloud

  • Former Oracle exec Thomas Kurian to replace Diane Greene as head of Google Cloud

    The company had a disparate set of cloud services when she took over, and one of the first things Greene did was to put them all under a single Google Cloud umbrella. “We’ve built a strong business together — set up by integrating sales, marketing, Google Cloud Platform (GCP), and Google Apps/G Suite into what is now called Google Cloud,” she wrote in the blog post.

    As for Kurian, he stepped down as president of product development at Oracle at the end of September. He had announced a leave of absence earlier in the month before making the exit permanent. Like Greene before him, he brings a level of enterprise street cred, which the company needs as it continues to try to grow its cloud business.

    https://techcrunch.com/2018/11/16/former-oracle-exec-thomas-kurian-to-replace-diane-greene-as-head-of-google-cloud/
    Google’s Cloud-Computing Boss, Diane Greene, to Step Down

    Google’s hiring of Mr. Kurian could suggest the company will consider making a bid for Red Hat Inc., the software-and-services company that International Business Machines agreed to acquire last month for $33 billion, Mr. Reback said. Red Hat would provide Google with the sales and support muscle, as well as credibility with corporate tech buyers, that it lacks, Mr. Reback said.

    https://www.wsj.com/articles/googles-cloud-computing-boss-diane-greene-to-step-down-1542396164?ns=prod/accounts-wsj

  • Oracle’s JEDI protest denied

    GAO denied Oracle’s protest and said that a single award strategy did not violate federal laws and procurement regulations — one of Oracle’s key arguments.

    “The Defense Department’s decision to pursue a single-award approach to obtain these cloud services is consistent with applicable statutes (and regulations) because the agency reasonably determined that a single-award approach is in the government’s best interests for various reasons, including national security concerns, as the statute allows,” GAO said in a statement announcing its ruling.

    https://washingtontechnology.com/blogs/editors-notebook/2018/11/oracle-lost-jedi-protest.aspx

Software/SaaS

  • Zuckerberg Defends Company in Friday Meeting With Employees

    Some Facebook employees indicated that they believe The Times and other news outlets are unfairly targeting the company because of its outsize influence — a sentiment shared in the session on Friday when employees asked executives what would happen to employees who leak information to the press.

    Mr. Zuckerberg made it clear that Facebook would not hesitate to fire employees who spoke to The New York Times or other publications. But after an employee asked whether the company should issue a report about how many leakers Facebook had found and fired, Mr. Zuckerberg played down the idea.

    Leaks, he said, are usually caused by “issues with morale.”

    https://www.nytimes.com/2018/11/17/technology/facebook-mark-zuckerberg.html

  • Facebook Fallout Ruptures Democrats’ Longtime Alliance With Silicon Valley

    Facebook previously signaled that it was ready to work with Mr. Warner and others in Congress on new regulation. Yet at the same time, Facebook turned to a conservative opposition research firm that sought to undermine detractors by publicizing financial links to Mr. Soros, a harsh critic of both Facebook and Google.

    The revelations angered Democrats, who accused Facebook of tapping into anti-Semitic conspiracy theories about Mr. Soros — the very kind of propaganda the company has claimed to be battling. Facebook has denied that the effort was anti-Semitic.

    https://www.nytimes.com/2018/11/17/technology/facebook-democrats-congress.html

Other

  • Amazon, Google Poised for Race to Hire High-Tech Talent

    Amazon will bring more than 25,000 jobs to New York and another 25,000 to Northern Virginia, it announced Tuesday. Google, meanwhile, plans to double its workforce in New York City to more than 14,000 workers over the next ten years, its chief financial officer said Monday at The Wall Street Journal’s WSJ Tech D.Live conference.

    The competition for talent will be stiff, recruiters say. But the two companies each have some distinct requirements that set them apart from other employers—and from each other, according to an analysis that labor-analytics firm Burning Glass Technologies conducted for the Journal. For example, the companies favor different coding languages and technical approaches for software projects.

    https://www.wsj.com/articles/amazon-google-chase-software-developersbut-not-the-same-ones-1542133719
    New York politicians push back on Amazon HQ2 plans

    “Amazon is a billion-dollar company,” Ocasio-Cortez wrote. “The idea that it will receive hundreds of millions of dollars in tax breaks at a time when our subway is crumbling and our communities need MORE investment, not less, is extremely concerning to residents here.”

    https://techcrunch.com/2018/11/14/new-york-politicians-push-back-on-amazon-hq2-plans/

    What Is Amazon Getting From New York City and Virginia?

    Incentives from New York state: $1.525 billion, including:

    • $1.2 billion in refundable tax credits from state’s Excelsior Program over 10 years, based on the creation of 25,000 jobs that pay an average of $150,000.
    • $325 million from Empire State Development based on how much space Amazon takes over the next decade.

    Incentives from New York City:

    • Amazon said it would apply for a New York City subsidy program that would provide it property-tax abatements for up to 25 years.
    • The company also is to seek incentives under a city program that could provide $3,000 in tax credits per eligible employee over 12 years, implying a $900 million benefit if all 25,000 workers are eligible. Amazon may also be eligible for other tax credits.

    https://www.wsj.com/articles/what-is-amazon-getting-from-new-york-city-and-virginia-1542127124

Photo by Mael BALLAND on Unsplash

Posted on

Supplier Report: 11/16/2018

Activism within technology companies remains a major topic due to headlines about Google and Amazon’s internal cultures.

Google workers remain unhappy with company’s response to repeated sexual harassment accusations from high level management.

Amazon employees remain frustrated with CEO Jeff Bezos’ willingness to support ICE with facial recognition software.

Silicon Valley is doing some collective soul searching because of these issues as well as the industry dependence on Saudi Arabian funding (via Softbank).

This is a good time to ask questions, but not a good time for clear answers.

Acquisitions

  • SAP to buy Qualtrics for $8 billion

    This would be the largest-ever purchase of a VC-backed enterprise software company, and the second-largest sale of any SaaS company (behind Oracle buying Netsuite for $9.3 billion).

    SAP CEO Bill McDermott said in a conference call that the Qualtrics IPO was already over-subscribed, and that he views this deal will mean for SAP what buying Instagram meant for Facebook — with SAP being able to merge its massive trove of operational data with Qualtrics’ collection of user experience data.

    https://www.axios.com/sap-to-buy-qualtrics-for-8-billion-1541977708-2936da4b-aeae-4ad2-9888-3dc384e08823.html

  • Microsoft buys two more video game studios

    In a broadcast from its Xbox Fanfest event this weekend, Microsoft announced the acquisition of two new video game studios: inXile Entertainment and Obsidian Entertainment.

    Both studios are headquartered in California, and both specialise in role-playing games. Both studios also have their roots in the 1990s “golden age” of computer RPGs, staffed by veteran developers from beloved 90s studio Black Isle. inXile is famous for nostalgic, strategic RPGs, such as Wasteland 2, which raised nearly $3m (£2.3m) on Kickstarter in 2012. Obsidian Entertainment is responsible for acclaimed modern RPGs Fallout: New Vegas, Star Wars: Knights of the Old Republic, Pillars of Eternity, and South Park: The Stick of Truth.

    https://www.theguardian.com/games/2018/nov/10/microsoft-buys-two-new-video-game-studios

  • BlackBerry in talks to buy cybersecurity company Cylance

    BlackBerry Ltd is in talks to buy cybersecurity company Cylance Inc for as much as $1.5 billion, Business Insider reported on Friday, citing sources familiar with the matter.

    Irvine, California-based Cylance develops AI-based products to prevent cyberattacks on companies and recently considered filing for an IPO, according to the report. (read.bi/2SYzvM9) A deal could be announced as soon as next week, Business Insider reported citing sources, who cautioned the deal could still fall apart.

    https://www.reuters.com/article/us-cylance-m-a-blackberry-idUSKCN1NE2GW
    That is a big purchase considering BlackBerry’s current cash flow

Artificial Intelligence

Cloud

  • Oath is dead. Long live Verizon Media Group/Oath

    Anyway, Oath is now going to be Verizon Media Group/Oath as part of a corporate restructuring undertaken by Verizon’s CEO, Vestberg. The company is going to operate under three different business units — a Consumer Group, led by Ronan Dunne, a current executive vice president of Verizon and president of Verizon Wireless; a Business Group, led by Tami Erwin, currently executive vice president of wireless operations — which will focus on government, small and medium businesses, large business customers, and operate the company’s telematics arm; and a Media Group / Oath, which will be led by Guru Gowrappan, currently Oath’s chief executive.

    https://techcrunch.com/2018/11/05/i-come-to-bury-oath/

Security

  • Jeff Bezos Fails to Explain Away Amazon’s Partnership with ICE

    So far, employees tell me, Amazon has not taken any action in response to its workers’ concerns. In fact, they said, a Thursday all-hands meeting was the first time executives addressed the controversy. Although the meeting wasn’t intended to focus on Rekognition, Bezos and co. fielded a pre-screened question that reportedly asked, “What is being done in response to the concerns voiced by both Amazon employees and civil-rights groups regarding Amazon selling facial-recognition technology to government and police organizations, including ICE?” Bezos passed the question to Andy Jassy, the Amazon Web Services C.E.O., who has defended the company’s decision, arguing that the terms of service for its products protects against misuse

    https://www.vanityfair.com/news/2018/11/jeff-bezos-fails-to-explain-away-amazons-partnership-with-ice
    Bezos has stated in several interviews that he supports the government. To say that he hasn’t responded or made his position clear is inaccurate.

Datacenter/Hardware

  • AMD stock jumps as Amazon starts using Epyc chips in the cloud

    Amazon, the largest provider of cloud computing services, is now offering three of its most popular products based on AMD’s Epyc server chips, Matt Garman, vice president of computing at Amazon Web Services, said Tuesday at an AMD presentation in San Francisco. The AMD chips allow for a 10 percent saving in computing costs, Garman said.

    Separately, AMD said it has sent samples of a new chip design to customers. Those chips are being made by Taiwan Semiconductor Manufacturing Co. with a technique called 7-nanometer production. That technology is equivalent to Intel’s announced 10-nanometer process, but will be in the market first, according to AMD’s Chief Technology Officer Mark Papermaster. Intel has announced issues with that 10-nanometer transition and said it won’t have server chips in the market until late next year.

    https://www.datacenterknowledge.com/amazon/amd-climbs-after-saying-amazon-will-use-its-cloud-server-chips

Other

  • Google Picks Geisinger CEO to Oversee Health-Care Initiatives

    Geisinger pioneered the use of electronic health records and other digital medical data. Its setup of integrating an insurer with a hospital system has been widely seen as a model, as more health-care companies try to blend various businesses under one roof. It has also been a leader in the broad use of genetic information to help manage and predict patients’ health conditions.

    Alphabet Inc.’s Google has launched various efforts in health care over the years with mixed success. Google Health, its first attempt to create an electronic health-records database, was launched in 2008 but was closed in 2011 after it failed to catch on with consumers and health-care providers.

    https://www.wsj.com/articles/google-picks-geisinger-health-ceo-to-oversee-health-care-initiatives-1541712775

  • Google walkout organizers aren’t satisfied with CEO’s response

    In the Medium post today, the organizers commended Google’s process while also noting how Pichai’s response did not address many of the core demands. In the post, they write:

    However, the response ignored several of the core demands — like elevating the diversity officer and employee representation on the board — and troublingly erased those focused on racism, discrimination, and the structural inequity built into the modern day Jim Crow class system that separates ‘full time’ employees from contract workers. Contract workers make up more than half of Google’s workforce, and perform essential roles across the company, but receive few of the benefits associated with tech company employment. They are also largely people of color, immigrants, and people from working class backgrounds.

    https://techcrunch.com/2018/11/08/google-walkout-organizers-response-sundar-pichai/

  • Tesla picks telco executive Robyn Denholm to replace Elon Musk as chairman

    “I believe in this company, I believe in its mission and I look forward to helping Elon and the Tesla team achieve sustainable profitability and drive long-term shareholder value,” Denholm said in a statement.

    “Robyn has extensive experience in both the tech and auto industries, and she has made significant contributions as a Tesla Board member over the past four years in helping us become a profitable company. I look forward to working even more closely with Robyn as we continue accelerating the advent of sustainable energy,” Musk added.

    https://techcrunch.com/2018/11/08/robyn-denholm-tesla-chair/

  • In Silicon Valley, Saudi Money Keeps Flowing to Startups Amid Backlash

    Silicon Valley startups are continuing to negotiate deals with Saudi Arabia and take its capital through its partner SoftBank Group Corp, amid the controversy over the killing of journalist Jamal Khashoggi that has clouded the kingdom’s role as a global technology investor.

    Two startups— View Inc., which makes light-adjustable glass, and Zume Inc., which uses robots to make pizza—disclosed investments over the past week totaling a combined $1.5 billion from SoftBank’s Saudi-backed Vision Fund.

    https://www.wsj.com/articles/in-silicon-valley-saudi-money-keeps-flowing-to-startups-amid-backlash-1541586601

Photo by Alen Rojnić on Unsplash