Tag: SAP

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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

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Supplier Report: 6/8/2018

That sweet Github candy - Joey Lombardi | The Source

Microsoft is purchasing code sharing site GitHub for $7.5B. The logic behind the acquisition is to push more code and development activities towards Microsoft’s Azure cloud platform and away from AWS.

Meanwhile, Amazon’s Jeff Bezos is worried about cloud lock-in. While Amazon does have more tools than other providers to help move off the platform, it is still a costly decision if a customer wants to go to another cloud service.

Google is opting not to continue their military AI contract and is creating corporate guidelines that prevent the company from weaponizing artificial intelligence in the future.

Acquisitions

  • Microsoft Is Buying GitHub for $7.5 Billion in Stock

    The deal values GitHub at nearly four times the $2 billion valuation given by private investors in a fundraising round three years ago. GitHub has grown into a major nexus for software developers to share and collaborate on code—it claims 28 million users. The 10-year-old company, which charges corporate customers, doesn’t disclose revenue or profit, and its financial performance isn’t clear.

    Acquiring GitHub could help Microsoft persuade more developers to create applications for its cloud-computing business, where customers rent digital resources and applications on demand. Microsoft is racing to catch up to industry leader Amazon.com Inc. in that business.

    https://www.wsj.com/articles/microsoft-to-acquire-github-for-7-5-billion-in-stock-1528118504

    Of course… it has to be weaponized…

    This is why Microsoft should buy $2 billion startup GitHub and turn it into a weapon against Amazon

    So the opportunity for Microsoft is fairly straightforward. If it can get the Microsoft Azure cloud tightly integrated with GitHub — basically, give developers an easy way to get a GitHub project up and running in the cloud — it can kill two birds with one stone. Developers could love GitHub even more, and it would drive more usage of Microsoft Azure.

    https://www.sfgate.com/technology/businessinsider/article/This-is-why-Microsoft-should-buy-2-billion-12961533.php

Artificial Intelligence

  • Google reportedly won’t renew its controversial military AI contract

    According to three individuals who attended a weekly Google meeting this morning, Google Cloud CEO Diane Greene announced that the Project Maven contract would not be renewed when it expires next year. She said the backlash over the deal had been bad for the company and that the contract was pursued during a time when the company was actively seeking military work.

    Internal emails obtained by Gizmodo showed that Google’s plans for the project may not have been as low-key as the company wanted people to think. Google reportedly put at least 10 employees on the project, viewed the deal as a gateway for future military and intelligence contracts and sought and received security authorizations that would allow it to work on additional government contracts. The Project Maven contract is also apparently worth more than Google executives once said, pulling in around $15 million instead of the $9 million that was previously reported. Its budget also had the possibility of growing to as much as $250 million. Additionally, emails show that Google planned to build a surveillance system for the Pentagon that would let analysts “click on a building and see everything associated with it.”

    https://www.engadget.com/2018/06/01/google-will-not-renew-military-ai-contract-project-maven/

  • Google pledges not to develop AI weapons, but says it will still work with the military

    While the new principles forbid the development of AI weaponry, they state that Google will continue to work with the military “in many other areas.” Speaking to The Verge, a Google representative said that had these principles been published earlier, the company would likely not have become involved in the Pentagon’s drone project, which used AI to analyze surveillance footage. Although this application was for “non-offensive purposes,” and therefore hypothetically permitted under these guidelines, the representative said it was too close for comfort — suggesting Google will play it safe with future military contracts.

    As well as forbidding the development of AI for weapons, the principles say Google will not work on AI surveillance projects that violate “internationally accepted norms,” or projects which contravene “widely accepted principles of international law and human rights.” The company says that its main focuses for AI research are to be “socially beneficial.” This means avoiding unfair bias; remaining accountable to humans and subject to human control; upholding “high standards of scientific excellence,” and incorporating privacy safeguards.

    https://www.theverge.com/2018/6/7/17439310/google-ai-ethics-principles-warfare-weapons-military-project-maven

  • IBM says it’s reaching for the ‘moon’ with Watson Health. That hasn’t stopped layoffs.

    All told, once the Truven deal closed, IBM had “invested more than $4 billion to acquire and build an unparalleled array of cognitive healthcare capabilities,” it said, having previously stressed that each of the acquisitions came with client lists and databases.

    The databases were certainly among the most important components of the deal because machine-learning systems like Watson rely on having a large number of cases to comb through in their search for analytic breakthroughs.

    Kavanaugh published a 53-page report last summer that questioned whether the investment in Watson will ever pay off for IBM, mostly on the grounds that competitors like Google and Amazon seem better-positioned to win what he called “the A.I. war.”

    http://www.heraldsun.com/news/business/article212325914.html

Cloud

  • Bezos doesn’t want AWS customers to feel ‘trapped’

    Though cloud computing can often lead to a vendor “lock-in,” Amazon CEO Jeff Bezos said Amazon Web Services works hard to prevent customers from feeling “trapped” in its services, speaking at the annual shareholder meeting last week, reports GeekWire.

    However, Bezos pointed out that adopting another cloud provider after already implementing one because of the time and money invested in the process can be costly. Developers taking time to learn application programming interfaces (APIs) is what directs many businesses to maintain a singular cloud vendor instead of “managing two different systems,” Bezos said.

    https://www.ciodive.com/news/bezos-doesnt-want-aws-customers-to-feel-trapped/524889/

  • SAP and IBM marry their cloud services in a partnership aimed at private cloud deploymentsa

    IBM Corp. and SAP SE today announced plans to launch an edition of the SAP Cloud Platform running on the IBM Cloud for private cloud deployments. The companies said the collaboration will help clients in regulated industries build new applications on the cloud without jeopardizing security and control.

    IBM has recently established or tightened cloud partnerships with Red Hat Inc., VMware Inc. and New Relic Inc. with the goal of helping enterprise customers move more easily to the cloud and take advantage of recent innovations like containers. “Our goal is to provide the cloud of choice for every enterprise, and particularly for enterprise workloads,” said Bradley Knapp, IBM’s offering manager for IBM Cloud for SAP.

    https://siliconangle.com/blog/2018/06/06/sap-ibm-marry-cloud-services-partnership-aimed-private-cloud-deployments/

Security

  • The damage from Atlanta’s huge cyberattack is even worse than the city first thought

    On Wednesday during a budget meeting, Daphne Rackley, Atlanta’s Interim Chief Information Officer and head of Atlanta Information Management, disclosed new details about the extent of the damage. As Reuters reports, at least one third of the 424 software programs that the city runs remain offline or partially inoperable. Almost 30 percent of those programs are deemed “mission critical” by the city meaning that they control crucial city services like the court system and law enforcement. In the meeting, Rackley explained that the city initially believed only 20 percent of the city’s software programs to be affected by the attack, none of which affected critical systems.

    While reporting the updated numbers, Rackley estimated that $9.5 million would need to be added to the department’s $35 million budget to address the remaining damage. That amount is on top of the more than two million dollars in emergency procurements sought by Atlanta Information Management following the attack.

    https://techcrunch.com/2018/06/06/atlanta-cyberattack-atlanta-information-management/

Software/SaaS

  • Gartner recognises SAP Ariba as Procure-to-Pay leader

    With more than 3.3mn connected companies in 190 countries transacting over $1.7trn in commerce on an annual basis, the Ariba Network is the world’s largest business-to-business trading platform.

    SAP Fieldglass’ cloud-based, open platform, which has a 99% customer retention rate, has been deployed in more than 180 countries and is used by organisations around the world to find, engage and manage all types of flexible resources.

    “We feel that our standing as a Leader in this Magic Quadrant reflects our value as an integrated end-to-end solution,” said Vish Baliga, Chief Technology Officer, SAP Fieldglass.

    https://www.supplychaindigital.com/procurement/gartner-recognises-sap-ariba-procure-pay-leader

  • Coupa: Valuation At A Dangerous Tipping Point

    Coupa also possesses few of the fundamental traits that typically accompany such a highly valued stock. The 37% y/y growth rate Coupa posted this quarter was, at least relative to other high-growth SaaS stocks, fairly middling. There are companies growing at 40-50%, like MongoDB (MDB), that are valued at only 8x forward revenues. And while investors may cheer on Coupa’s ability to generate free cash flow (which is, admittedly, a rarity in the SaaS sector and impressive at Coupa’s early stage), its FCF margin of 20% still can’t be considered best-in-breed, as other companies like Dropbox (DBX) have FCF margins closer to 30%.

    https://seekingalpha.com/article/4179374-coupa-valuation-dangerous-tipping-point

Datacenter/Hardware

  • IRS to Spend Nearly $300 Million on IT in Tax Overhaul

    The Internal Revenue Service plans to spend $291 million updating 140 computer systems to help it implement the new tax law, according to a previously undisclosed agency document.

    Those information-technology costs and other back-office operations will consume more than 90% of the money Congress is giving the IRS for implementation. The IRS is also bracing for a 17% increase in phone calls, planning to revise 450 forms and publications and organizing 40,000 hours of training, according to the document.

    https://www.wsj.com/articles/irs-to-spend-nearly-300-million-on-it-in-tax-overhaul-1527871564?ns=prod/accounts-wsj

Other

  • Behind the Messy, Expensive Split Between Facebook and WhatsApp’s Founders

    Facebook’s hands-off stance changed around 2016. WhatsApp topped one billion monthly users, and it had eliminated its 99 cent fee. Facebook told investors it would stop increasing the number of ads in Facebook’s news feed, resulting in slower advertising-revenue growth. This put pressure on Facebook’s other properties—including WhatsApp—to make money.

    That August, WhatsApp announced it would start sharing phone numbers and other user data with Facebook, straying from its earlier promise to be built “around the goal of knowing as little about you as possible.”

    With Mr. Zuckerberg and Ms. Sandberg pushing to integrate it into the larger company, WhatsApp moved its offices in January 2017 from Mountain View, Calif., to Facebook’s Menlo Park headquarters about 20 minutes away. Facebook tried to make it welcoming, decorating the Building 10 office in WhatsApp’s green color scheme.

    https://www.wsj.com/articles/behind-the-messy-expensive-split-between-facebook-and-whatsapps-founders-1528208641?ns=prod/accounts-wsj

Photo by Kyle Cottrell on Unsplash

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Supplier Report: 5/11/2018

Google’s I/O conference took place this week and they introduced groundbreaking AI assistant technology… but not everyone is in love with the idea of not knowing when they are talking to a robot.

Equifax (finally) released the full impact of their 2017 security breach.  147 million American’s social security numbers were breached.  Why did it take so long to get the whole picture?  Speaking of security, hackers found a way to bypass two factor authentication.

And…Microsoft might buy Netflix (I have serious doubts about the accuracy of this rumor).

Acquisitions

  • Google to acquire cloud migration startup Velostrata

    Velostrata helps companies migrate from on-premises datacenters to the cloud, a common requirement today as companies try to shift more workloads to the cloud. It’s not always a simple matter though to transfer those legacy applications, and that’s where Velostrata could help Google Cloud customers.

    As I wrote in 2014 about their debut, the startup figured out a way to decouple storage and compute and that had wide usage and appeal. “The company has a sophisticated hybrid cloud solution that decouples storage from compute resources, leaving the storage in place on-premises while running a virtual machine in the cloud,” I wrote at the time.

    https://techcrunch.com/2018/05/09/google-to-acquire-cloud-migration-startup-velostrata/

  • Microsoft Will Acquire Netflix Within the Next 2 Years: Top Analyst

    “Netflix, while a pioneer as a streaming service, doesn’t have a business model that is sustainable,” said Bibb. “For every one in two movies, one makes a significant loss while one makes a significant gain…No one has cracked the code to fix this, although Netflix doesn’t have to deal with the ticket sales.”

    He believes that the Microsoft-Netflix merger could be announced in 18-24 months, but added that there will be “a few bumps in the road before anything happens.”

    https://www.thestreet.com/technology/microsoft-acquire-netflix-says-analyst-14583140

Artificial Intelligence

  • Intelligent Machines Will Teach Us—Not Replace Us

    That is the real promise of this new generation of AI: creating new knowledge, not just good results. Instead of processing human instructions at incredible speed, they create their own guidelines from scratch and discover patterns invisible to us. Instead of analyzing millions of human games to find the best way to play, they can generate their own data and find rules that apply to the real world. These machines will be able to go beyond “what” and tell us “why.”

    Whenever there’s a brilliant advance in robotics or machine intelligence, people send it to me on social media with messages proclaiming, “We’re all doomed!” But the notion that these machines could become human-hunting Terminators is absurd. Intelligence and autonomy of movement don’t equal free will and killer instinct.

    https://www.wsj.com/articles/intelligent-machines-will-teach-usnot-replace-us-1525704147?ns=prod/accounts-wsj

  • Google Duplex: A.I. Assistant Calls Local Businesses To Make Appointments

    https://ai.googleblog.com/2018/05/duplex-ai-system-for-natural-conversation.html
    Duplex shows Google failing at ethical and creative AI design

    At one point the bot’s ‘mm-hmm’ response even drew appreciative laughs from a techie audience that clearly felt in on the ‘joke’.

    But while the home crowd cheered enthusiastically at how capable Google had seemingly made its prototype robot caller — with Pichai going on to sketch a grand vision of the AI saving people and businesses time — the episode is worryingly suggestive of a company that views ethics as an after-the-fact consideration.

    One it does not allow to trouble the trajectory of its engineering ingenuity. A consideration which only seems to get a look in years into the AI dev process, at the cusp of a real-world rollout — which Pichai said would be coming shortly.

    https://techcrunch.com/2018/05/10/duplex-shows-google-failing-at-ethical-and-creative-ai-design/

  • Trump Administration Vows to Maintain U.S. Edge in AI Technology

    At a White House conference on artificial intelligence, Trump technology adviser Michael Kratsios pledged that the administration would make a priority of advancing artificial-intelligence research, through greater research funding and other steps.

    “America has been the global leader in AI, and the Trump administration will ensure our great nation remains the global leader in AI,” said Mr. Kratsios, deputy assistant to the president for technology policy, according to prepared text of a keynote speech.

    https://www.wsj.com/articles/trump-administration-vows-to-maintain-u-s-edge-in-ai-technology-1525972043?ns=prod/accounts-wsj

  • Amazon Reportedly Building Healthcare Team for Alexa So You Can Ask If That Cut Looks Infected

    The company’s primary hurdle in that task will be making the voice assistant compliant with the privacy requirements of the Health Insurance Portability and Accountability Act (HIPAA). The law sets some pretty stringent requirements for handling sensitive health-related data, and Alexa currently does not meet those standards. The company’s cloud platform Amazon Web Services (AWS) does support HIPAA compliance and the new health and wellness team reportedly has a HIPAA expert on board, so Alexa may soon be able to properly handle your medical data—assuming you’re willing to trust the voice assistant with that information.

    Amazon’s increased interest in the healthcare industry comes as the company is reportedly bowing out of the pharmaceutical business. CNBC reported last month that Amazon was shelving a plan to sell drugs directly to hospitals through its Amazon Business platform, and experts have suggested the barrier to entry in the filed may prove too high even for the tech giant.

    https://gizmodo.com/amazon-reportedly-building-healthcare-team-for-alexa-so-1825938924

Cloud

  • Microsoft needs to prove it’s not another IBM

    Microsoft can’t afford to become the next IBM and lose any relevance it still holds with consumers, but if it’s not careful, that might be inevitable. Even tomorrow’s Windows-focused keynote is all about Microsoft 365, the company’s subscription service for businesses that combines Windows 10 and Office 365. Microsoft has an opportunity at Build this week to show developers that it’s not just another IBM and that it’s not going to turn into a company that lacks the mindshare and technological influence it possessed in its heyday.

    Build is a chance to show off the good bits of the new Microsoft and where exactly the company will be heading in the next five years. Vague promises of AI and quantum computing won’t be enough without a good demonstration of its software prowess in action. Microsoft has the opportunity to show the world this week what it really stands for and why people should still care.

    https://www.theverge.com/2018/5/7/17325540/microsoft-build-conference-2018-preview

Security

  • Equifax filing reveals hack was somehow even worse than previous estimates

    Today’s information was filed with the Securities and Exchange Commission as part of the company’s disclosures regarding the hack. It provided first a handy table listing what was stolen as raw strings of data from Equifax’s inadequately protected databases:

    Full name: 146.6M
    Date of Birth: 146.6M
    Social Security number: 145.5M
    Full address: 99M
    Gender: 27.3M
    Phone number: 20.3M
    Driver’s license number (incl. 2.4M partials): 17.6M
    Email address: 1.8M
    Credit card numbers (with expiration dates): 209,000
    Individual Tax Identification Number (ITIN/Tax ID): 97,500
    Driver’s license state: 27,000

    Previous estimates of driver’s license numbers leaked were around 10.9 million, and total affected put at 143 million. Sure, the difference between 143 million and 146.6 million is relatively small, but it’s still 3.6 million people.

    https://techcrunch.com/2018/05/08/equifax-filing-reveals-hack-was-somehow-even-worse-than-previous-estimates/

  • Hacker Kevin Mitnick shows how to bypass 2FA

    Chief Hacking Officer Kevin Mitnick showed the hack in a public video. By convincing a victim to visit a typo-squatting domain liked “LunkedIn.com” and capturing the login, password, and authentication code, the hacker can pass the credentials to the actual site and capture the session cookie. Once this is done the hacker can login indefinitely. This essentially uses the one time 2FA code as a way to spoof a login and grab data.

    https://techcrunch.com/2018/05/10/hacker-kevin-mitnick-shows-how-to-bypass-2fa/

  • Flash Drives Are Contraband at IBM Now

    In a seemingly unenforceable move, IBM has banned its employees “from using removable memory devices such as USB sticks, SD cards and flash drives.” The company’s global chief information security officer Shamla Naidoo said that “the possible financial and reputational damage from misplaced, lost or misused removable portable storage devices must be minimised.”

    http://goingconcern.com/flash-drives-banned-ibm-inchan/
    Lots of headlines about this, but it isn’t like IBM is the first company to do this.

Software/SaaS

  • SAP Ariba tightens supplier risk monitoring with new vetting process

    “When it comes to some indirect spend, the role of procurement is changing from negotiating deals to creating a dynamic marketplace within a compliant environment where users can get what they need,” said Robert Ward, procurement process and performance manager, NSG Group. “And with SAP Ariba Spot Buy, we can do this.”

    GRMS evaluates and continuously monitors suppliers against more than 1500 global governmental watch lists and enforcement and sanctions sources. The service also offers the risk assessment modules in regulatory compliance, financial stability, insurance management, reputational protection, health and safety, social responsibility, cyber security and document management.

    http://www.insidesap.com.au/sap-ariba-tightens-supplier-risk-monitoring-new-vetting-process/

  • Oracle’s autonomous database could leave DBAs unemployed

    The autonomous self-patching, self-healing database, the first version of which is 18c, is a part of a long-term play to help draw the company’s customers into Oracle’s piece of the cloud – which is increasingly packing itself with cloud-based applications and services.

    Hurd said it could take almost a year to get on-premise databases patched, whereas patching was instant with the autonomous version. “If everyone had the autonomous database, that would change to instantaneous,” he said.

    So where does that leave Oracle DBAs around the world? Possibly in the unemployment queue, at least according to Hurd. “There are hundreds of thousands of DBAs managing Oracle databases. If all of that moved to the autonomous database, the number would change to zero,” Hurd said at an Oracle media event in Redwood Shores, California.

    https://www.computerweekly.com/news/252440766/Oracles-autonomous-database-could-leave-DBAs-unemployed

Other

  • One of net neutrality’s biggest enemies ‘retires’ from AT&T amid Michael Cohen scandal

    AT&T has decided to join the growing coalition of people who regret paying President Trump’s lawyer. In a message to AT&T employees today, first obtained by CNN, AT&T President Randall Stephenson said “our company has been in the headlines for all the wrong reasons these last few days and our reputation has been damaged. There is no other way to say it — AT&T hiring Michael Cohen as a political consultant was a big mistake.” Regardless, Stephenson insists that “everything we did was done according to the law and entirely legitimate.”

    But while Stephenson says he takes “full responsibility” for the mistake, it actually seems like AT&T’s top lobbyist Bob Quinn is taking the hit. Stephenson also announced in his message that Quinn “will be retiring,” and that the company’s lobbying shop will now be reporting to AT&T General Counsel David McAtee.

    https://www.theverge.com/2018/5/11/17344040/at-t-michael-cohen-lawyer-lobbyist-bob-quinn

  • Apple is no longer building its $1 billion data center in Ireland

    Apple has announced it will no longer build a $1 billion (€850 million) data center in Ireland after planning delays lasting over three years, reports Reuters. Since 2015, Apple has wanted to build the data center in Athenry to be close to green energy sources, but the plans have been met with stalls in the approval process. The company had yet to even beginconstruction on the center. Apple was also set to face an appeal in Dublin’s Supreme Court on Thursday over initial approval of the planned first phase of building.

    https://www.theverge.com/2018/5/10/17338734/apple-data-center-ireland-scrapped-athenry

Photo by Patrik Göthe on Unsplash

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Supplier Report: 3/23/3018

Oracle and MicroFocus had a very rough week at the stock market.  MicroFocus dropped over 50% in value due to complications integrating HP software assets. Oracle investors are reacting to a lack of progress in cloud sales.

SAP settled a $600M software dispute with Anheuser-Busch, terms were not disclosed, but I am sure all parties need a drink after those discussions.

As China gains more traction in artificial intelligence, the US is attempting to curb any domestic growth in consumer goods or tech acquisitions.  Is this a sound strategy or is this the start of a potential trade war?

Acquisitions

  • Sources: Google is buying Lytro for about $40M

    Multiple sources tell us that Google is acquiring Lytro, the imaging startup that began as a ground-breaking camera company for consumers before pivoting to use its depth-data, light-field technology in VR.

    One source described the deal as an “asset sale” with Lytro going for no more than $40 million. Another source said the price was even lower: $25 million. A third source tells us that not all employees are coming over with the company’s technology: some have already received severance and parted ways with the company, and others have simply left. Assets would presumably also include Lytro’s 59 patents related to light-field and other digital imaging technology.

    https://techcrunch.com/2018/03/20/sources-google-is-buying-lytro-for-about-40m/

  • Salesforce is buying MuleSoft at enterprise value of $6.5 billion

    But of course Salesforce gets more than tech with this purchase, which it can integrate into its growing family of products. It also gets major customers like Coca-Cola, VMware, GE, Accenture, Airbus, AT&T and Cisco. While Salesforce may have a presence already in some of these companies already, Mulesoft gives them entree into areas they might not have had and gives them the ability to expand that presence.

    What’s more, the company has big revenue goals. Having reached $10 billion in revenue faster than any software company ever has, a point that Chairman and co-founder Marc Benioff has been happy to make, they have actually set their sites on $60 billion by 2034. That’s a long way away, of course, but having a company like MuleSoft in the fold, which made almost $300 million in revenue in fiscal 201, will certainly help.

    https://techcrunch.com/2018/03/20/salesforce-is-buying-mulesoft-at-enterprise-value-of-6-5-billion/

  • Google’s Cloud Boss Is Eyeing a ‘Major Acquisition’ to Get Ahead

    For 2018, Greene and her deputies mentioned a focus on winning customers in health care, energy and financial services. Greene said Google will keep working to sign cloud deals with the government, too. The company recently got its FedRAMP certification, a key clearance needed to provide cloud services to the U.S. government.

    Over the past two years, Alphabet has scaled back several costly initiatives, including projects in fiber broadband and drones. But the company has plowed money into Greene’s division. (Greene, an Alphabet director, said she recuses herself from board votes on cloud acquisitions.) That investment is indicative of the support that Alphabet CEO and Google co-founder Larry Page has for the business, Greene noted.

    “The entire board, including Larry, is pretty thrilled with what’s going on in cloud,” she said. “How could they not be? It’s phenomenal what the team has achieved.”

    https://www.bloomberg.com/news/articles/2018-03-16/google-s-cloud-boss-eyeing-major-acquisition-to-get-ahead

  • Qualcomm’s Jacobs to Leave Board as He Explores Acquisition

    Qualcomm Inc. said director Paul Jacobs, son of the chipmaker’s founder and a former chief executive officer, will leave the board after he decided to explore an acquisition of the company.

    “The board reached that decision following his notification to the board that he has decided to explore the possibility of making a proposal to acquire Qualcomm,” the company said in a statement on Friday.

    Jacobs, 55, was stripped of his executive chairman title last week as the company sought to fend off a $117 billion hostile takeover bid from Broadcom Ltd. The board largely agreed with Jacobs that Broadcom’s bid was too low. However, early counts in a board vote tied to the Broadcom bid showed many Qualcomm shareholders had voted to replace Qualcomm directors, including Jacobs and Chief Executive Officer Steve Mollenkopf. U.S. President Donald Trump blocked the deal earlier this week.

    https://www.bloomberg.com/news/articles/2018-03-16/qualcomm-s-jacobs-to-leave-board-as-he-explores-possible-buyout

Artificial Intelligence

  • Look out, Alexa and Google Assistant — Watson Assistant is coming for you

    One of the key differentiating factors between Watson and all other smart assistants is its status as a white label product. That means that there’s no specific way in which to use Watson Assistant — there is no set wake word, nor a dedicated smart speaker in which the assistant will live. Rather, companies will be able to leverage Watson however they see best, making it easier to add actions and commands. And perhaps most importantly, every individual application of Watson Assistant will keep its data to itself, which means that large companies can’t, as The Verge notes, “pool information on users’ activities across multiple domains.”

    As IBM’s vice president of Watson Internet of Things, Bret Greenstein, explained to The Verge, “If you start running the entire world through Alexa, it’s an enormous amount of data and control to give to one company.” But Watson Assistant hopes to avoid that situation.

    https://www.digitaltrends.com/home/watson-ibm-assistant/

  • FedEx Follows Amazon Into the Robotic Future

    Yes, the robots replaced a few jobs right away. And in time, they will replace about 25 jobs in a facility that employs about 1,300 people. But the hub creates about 100 new jobs every year — and a robot work force still seems like the distant future.

    “Everyone will have a job,” said Galen Steele, the senior manager who oversees the depot. “It just might be in a different place.”

    As people have become more comfortable buying online, big and bulky goods like car tires, canoes and boxes as big as a coffin have accounted for an increasing percentage of the packages flowing through FedEx’s distribution centers, said Ted Dengel, who oversees operations technology for the FedEx Ground network, which includes 35 shipping hubs across the United States and Canada, including the facility in North Carolina.

    These ungainly items can’t fit on a conveyor belt. That’s where the robots, which cost several thousand dollars and are made by a Massachusetts company called Vecna, come in.

    https://www.nytimes.com/2018/03/18/technology/fedex-robots.html

  • China wants to shape the global future of artificial intelligence (Thanks JD)

    “[The Chinese government] sees standardization not only as a way to provide competitiveness for their companies, but also as a way to go from being a follower to setting the pace,” says Jeffrey Ding, a student at Oxford University’s Future of Humanity Institute who studies China’s nascent AI industry, and who translated the report. The government’s plan cites the way US standards bodies have influenced the development of the internet, expressing a desire to avoid having the same thing happen with AI.

    China’s booming AI industry and massive government investment in the technology have raised fears in the US and elsewhere that the nation will overtake international rivals in a fundamentally important technology. In truth, it may be possible for both the US and the Chinese economies to benefit from AI. But there may be more rivalry when it comes to influencing the spread of the technology worldwide.

    https://www.technologyreview.com/s/610546/china-wants-to-shape-the-global-future-of-artificial-intelligence/

Cloud

  • Oracle stock heads for worst day in nearly 5 years, analysts run for shelter after cloud bursts

    In Oracle’s earnings conference call, CEO Safra Catz told analysts that the firm expects to report adjusted earnings of $0.92 to $0.95 per share and revenue growth of 1% to 3% for the fourth quarter. Heading into the report data, our Zacks Consensus Estimates were calling for earnings of $0.90 per share and revenue growth of 2.6%.

    But the real concern for investors is Oracle’s slowing cloud growth. Management guided for total cloud revenues to improve between 19% and 23% in Q4, which is sluggish compared to the 32% growth it saw this quarter-and even worse considering the 51% and 44% rates it witnessed in Q1 and Q2.

    https://www.nasdaq.com/article/is-oracle-orcl-worth-buying-on-the-post-earnings-dip-cm937297

Security

  • Best Buy to Stop Selling Huawei Phones

    U.S. intelligence leaders have recently recommended against Americans using phones from Huawei or Chinese rival ZTE Corp. The most recent to do so was Paul Nakasone, the nominee to head both the National Security Agency and U.S. Cyber Command, who said at a Senate hearing last week that he wouldn’t want his friends or family using such devices.

    In addition to selling smartphones, Huawei is the world’s top maker of the equipment that goes into cellular towers and related infrastructure. The U.S. government’s broad concern is that the Chinese government could order Huawei to exploit knowledge of how its electronics are designed to spy or launch cyberattacks. Huawei says it is employee-owned and that no government has ever asked it to spy on or sabotage another country.

    https://www.wsj.com/articles/best-buy-to-stop-selling-huawei-phones-1521725835

Software/SaaS

  • DocuSign has filed confidentially for IPO

    Like Dropbox, which is finally going public this week, San Francisco-based DocuSign has been an anticipated IPO for several years now. It’s raised over $500 million since it was founded in 2003 and has been valued at $3 billion. Kleiner Perkins, Bain Capital, Intel Capital, GV (Google Ventures) and Dell are among the many well-known names which have invested in DocuSign.

    But like many “unicorns” these days, the company took its time, spending 15 years as a private company. The DocuSign team decided that 2018 is the year for its debut and is targeting an IPO in either the second or third quarter.

    https://techcrunch.com/2018/03/20/docusign-has-filed-confidentially-for-ipo/

  • Coca-Cola and US government use blockchain to curb forced labor

    Coca-Cola, the US State Department and a trio of crypto organizations (Bitfury Group, Blockchain Trust Accelerator and Emercoin) have launched a pilot project that will use blockchain to enforce worker rights. The initiative would use blockchain’s distributed ledger technology to create a secure, decentralized registry for workers and their contracts. They’d not only have the sort of identification that isn’t always guaranteed, but a trail of evidence in case employers abuse their power or don’t honor their end of a bargain.

    https://www.engadget.com/2018/03/18/coca-cola-and-us-government-use-blockchain-to-curb-forced-labor/

  • Microsoft’s Edge Browser Could Soon Be Harder to Ignore in Windows 10

    But if you keep scrolling, near the bottom of the patch notes for build 17623, there’s a bullet point that says Insiders on the Skip Ahead ring “will begin testing a change where links clicked on within the Windows Mail app will open in Microsoft Edge.” Please say it ain’t so. This means that regardless of what your default browser is set to in Windows 10, any hyperlink you click in the Mail app would open in Edge, whether you like it or not.

    Microsoft justifies this by saying Edge “provides the best, most secure and consistent experience on Windows 10 and across your devices” and that “With built-in features for reading, note-taking, Cortana integration, and easy access to services such as SharePoint and OneDrive, Microsoft Edge enables you to be more productive, organized and creative without sacrificing your battery life or security.”

    https://gizmodo.com/microsoft-s-edge-browser-could-soon-be-harder-to-ignore-1823843562

  • LinkedIn’s $27 Billion Challenge: Get People to Use It More

    Just 18% of LinkedIn members used the service daily in April 2016, according to Pew Research’s most recent look at the service’s usage in November 2016, a month before Microsoft MSFT 0.45% closed the deal. That’s down from 21% a year earlier.

    What’s more, more than half of members, 51%, used LinkedIn every few weeks or less often, Pew found. By comparison, 76% of Facebook Inc. members used the service at least daily, Pew found.

    At the time of the deal, Microsoft Chief Executive Satya Nadella said one goal was to weave together the tools people use to get their jobs done and professional networks that connect workers.

    https://www.wsj.com/articles/linkedins-27-billion-challenge-get-people-to-use-it-more-1521201600

  • Oracle claims database 10 times cheaper than AWS, analyst says cloud on ‘continual slide’

    Speaking on an earnings call, transcribed by Seeking Alpha, Hurd talked up Oracle’s new autonomous database.

    “The amazing thing about the autonomous database is that it is the only database on the planet that requires no human labor to administer,” he said.

    “Oracle has a faster database than Amazon, it’s no big surprise there, but the interesting thing [is that] Amazon charges by the minute and we charge by the minute; our prices are essentially the same or close enough.

    “If we run 10 times faster, we are one-tenth the cost of Amazon’s database. We’ve been through all the public benchmarks – you can go and look at them – we’re one-tenth the cost.”

    https://www.channelnomics.com/channelnomics-us/news/3028817/oracle-claims-database-is-ten-times-cheaper-than-aws

  • Hewlett Packard Spin-Off Falters, as Shares Drop 55% in London

    It hasn’t worked out as planned. Micro Focus shares plunged 46% Monday after it said technical problems related to combining the computer systems of Micro Focus and HPE would lead to lower-than-expected sales.

    Micro Focus also said its chief executive, Chris Hsu, resigned after a 6½-month tenure. Previously HPE’s chief operating officer, Mr. Hsu was appointed CEO in January 2017 and officially took the position when the merger was completed this past September.

    https://www.wsj.com/articles/hewlett-packard-spin-off-falters-as-shares-drop-55-in-london-1521471054

Other

  • Facebook Suspends Data Firm That Helped Trump Campaign

    Facebook said late Friday that it been given information that Cambridge Analytica, along with two individuals who don’t work there, improperly kept Facebook user data for years despite telling the social network that it had destroyed those records. Facebook didn’t say how Cambridge Analytica used that data or if it gave the data to the Trump campaign.

    Facebook, which didn’t elaborate on the source of its information, said it is suspending Cambridge Analytica, its parent Strategic Communication Laboratories and the two individuals from buying ads or administering clients’ pages while it investigates the reports.

    The move once again spotlights Facebook’s role during the 2016 presidential election and its shortcomings in policing manipulation and misuse of its platform.

    https://www.wsj.com/articles/facebook-suspends-cambridge-analytica-for-failing-to-delete-user-data-1521260051

  • SAP settles licensing dispute with AB InBev

    Questioned about the settlement, an SAP spokesman added just one adjective: “There is nothing more to say than ‘There was a dispute and it was resolved amicably,’” he said via email.

    That the companies were able to conclude the dispute so amicably and quietly comes down to the framework SAP used to enforce its licensing agreement: the Commercial Arbitration Rules of the American Arbitration Association.

    Commercial arbitration proceedings are usually conducted in private, and unlike in U.S. courts, filings and rulings are not matters of public record.

    When a licensing dispute goes to court, it’s generally a lot harder to keep quiet, as another alcoholic beverage maker, Diageo, found when SAP sued it for accessing data stored in its SAP system without the appropriate licenses. In February 2017 a U.K. court ruled that Diageo needed named-user licenses for customers and employees to access the SAP system, even when they did so indirectly through a Salesforce.com app. The court didn’t immediately rule on how much Diageo had to pay, but SAP was asking for £54,503,578 (around $76 million).

    https://www.cio.com/article/3263717/enterprise-resource-planning/sap-settles-licensing-dispute-with-ab-inbev.html

  • Cutting “old heads” at IBM

    The company reacted with a strategy that, in the words of one confidential planning document, would “correct seniority mix.” It slashed IBM’s U.S. workforce by as much as three-quarters from its 1980s peak, replacing a substantial share with younger, less-experienced and lower-paid workers and sending many positions overseas. ProPublica estimates that in the past five years alone, IBM has eliminated more than 20,000 American employees ages 40 and over, about 60 percent of its estimated total U.S. job cuts during those years.

    In making these cuts, IBM has flouted or outflanked U.S. laws and regulations intended to protect later-career workers from age discrimination, according to a ProPublica review of internal company documents, legal filings and public records, as well as information provided via interviews and questionnaires filled out by more than 1,000 former IBM employees.

    https://features.propublica.org/ibm/ibm-age-discrimination-american-workers/

  • Trump strikes back at Chinese tech practices with new tariffs

    Trump directed his administration to take action that will likely result in tariffs on a proposed list of 1,300 products as punishment for Beijing’s intellectual property practices, senior White House officials said ahead of the announcement.

    The officials said the list of targeted products will largely focus on technology China is accused of forcefully taking from U.S. companies. The value of that list represents the harm that U.S. companies have suffered from China’s practices, they said.

    “What you’ll see is that many of these areas are those where China has sought to acquire advantage through the unfair acquisition or forced technology transfer from U.S. companies with an aim toward establishing its own competitive advantage,” said Everett Eissenstat, deputy director of the White House National Economic Council, during a call with reporters.

    https://www.politico.com/story/2018/03/22/trump-chinese-tech-practices-tariffs-428551

Photo by Guzmán Barquín on Unsplash

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Supplier Report: 2/9/2018

Companies love to say AI is the future, but some are spending more money on that future than others.

Amazon is going deep on AI within various aspects of their business.  A recent Wired article highlights the projects Amazon is building automation and robotics strategies (managing internal process, mining customer data, and selling automated services in the cloud and via smart speakers). These practices are paying off as Amazon reported their largest profit ever.

Amazon isn’t alone, Foxconn is allocating $340M in automation R&D and IBM keeps advancing Watson’s medical abilities recently developing a method to diagnose certain types of mental illness.

Acquisitions

  • LogMeIn is buying Jive Communications for up to $357M to step up in enterprise unified comms

    Yet more consolidation in the enterprise collaboration software market. Today LogMeIn, the company that offers conferencing services like GoToMeeting and join.me as well as authentication and other online services to businesses and others, announced that it would acquire Jive Communications for $342 million in cash plus up to $15 million based on reaching specific milestones in the next two years.

    Jive Communications is not to be confused with Jive Software, the Slack competitor in enterprise collaboration that itself was acquired last year for $462 million by Aurea. However, it is also in a bigger area of enterprise communications, and underscores how we are continuing to see a lot of M&A and general growth in that market. This is a strong exit for Jive Communications, a Utah-based startup that had raised only around $31 million since it was founded in 2006.

    https://techcrunch.com/2018/02/08/logmein-is-buying-jive-communications-for-up-to-357m-to-step-up-in-enterprise-unified-comms/?ncid=rss

  • Qualcomm rejects Broadcom’s $121 billion bid

    Qualcomm’s board of directors issued a statement on Thursday saying that they are turning down Broadcom’s $121 billion bid to buy the competing chipmaker.

    According to the release, Qualcomm “unanimously rejected” an “unsolicited proposal” to buy all of its shares at $82 each, of which $60 would be cash and $22 stock. Broadcom made the revised offer on Monday, up from the previously proposed deal price of $70 per share.

    https://techcrunch.com/2018/02/08/qualcomm-rejects-broadcoms-121-billion-bid/?ncid=rss

Artificial Intelligence

  • IBM’s New AI Can Predict Psychosis in Your Speech

    The group built on the findings of a 2015 IBM study demonstrating the possibility of using AI to model the differences in speech patterns of high-risk patients who later developed psychosis and those who did not. Specifically, they quantified the concepts of “poverty of speech” and “flight of ideas” as syntactic complexity and semantic coherence, respectively, using an AI method called Natural Language Processing (NLP).

    Their AI then evaluated the speech patterns of patients that researchers instructed to talk about themselves for an hour.

    https://futurism.com/ibm-psychosis-predicting-ai-speech/

  • Foxconn to plug at least $340M into AI R&D over five years

    According to Nikkei, Foxconn intends to recruit up to 100 top AI experts globally. It also said it will recruit thousands of less experienced developers to work on building applications that use machine learning and deep learning technologies.

    Embedding sensors into production line equipment to capture data to feed AI-fueled automation development is a key part of the AI R&D plan, with Foxconn saying earlier that it wants to offer advanced manufacturing experiences and services — eyeing competing with the likes of General Electric and Cisco.

    The company has also been working with Andrew Ng’s new AI startup Landing.ai — which is itself focused on plugging AI into industries that haven’t yet tapping into the tech’s transformative benefits, with a first focus on manufacturing — since July.

    https://techcrunch.com/2018/02/03/foxconn-to-plug-at-least-340m-into-ai-rd-over-five-years/?ncid=rss
    Mentioned this last week, here are some more details.

  • Inside Amazon’s Artificial Intelligence Flywheel

    Amazon loves to use the word flywheel to describe how various parts of its massive business work as a single perpetual motion machine. It now has a powerful AI flywheel, where machine-learning innovations in one part of the company fuel the efforts of other teams, who in turn can build products or offer services to affect other groups, or even the company at large. Offering its machine-learning platforms to outsiders as a paid service makes the effort itself profitable—and in certain cases scoops up yet more data to level up the technology even more.

    It took a lot of six-pagers to transform Amazon from a deep-learning wannabe into a formidable power. The results of this transformation can be seen throughout the company—including in a recommendations system that now runs on a totally new machine-learning infrastructure. Amazon is smarter in suggesting what you should read next, what items you should add to your shopping list, and what movie you might want to watch tonight. And this year Thirumalai started a new job, heading Amazon search, where he intends to use deep learning in every aspect of the service.

    “If you asked me seven or eight years ago how big a force Amazon was in AI, I would have said, ‘They aren’t,’” says Pedro Domingos, a top computer science professor at the University of Washington. “But they have really come on aggressively. Now they are becoming a force.”

    https://www.wired.com/story/amazon-artificial-intelligence-flywheel/

  • Is artificial intelligence killing Japan’s banks? (Thanks JD!)

    Due to Japan’s zero interest rate policy, domestic banks can’t make money on loans, so they’ve become clearinghouses for other financial companies’ products, be it mutual funds or insurance policies. Banks are basically salesmen who collect handling fees for delivering products and services. Once that task is automated or otherwise rendered obsolete by new technology, what’s the point of a bank?

    https://www.japantimes.co.jp/news/2018/01/27/national/media-national/artificial-intelligence-killing-japans-banks/#.Wm6pmHNOm7M

Cloud

  • Is Google Losing to Amazon?

    But profitability isn’t why investors favor the retailer over the search engine. Google’s $26.1 billion of operating income last year is about 40% more than Amazon has earned in its entire existence. Nor is it the propensity to make big gambles. The difference is that Amazon has figured out how to make more of its big gambles, such as Prime and its AWS cloud service, drive its accelerating growth. Since 2010, Amazon’s larger revenue base has averaged 28% growth annually while Alphabet’s has averaged 21%.

    https://www.wsj.com/articles/is-google-losing-to-amazon-1517662800

  • Amazon Reports Largest Profit Ever

    Amazon’s sales rose 38 percent to $60.5 billion in the quarter, also beating estimates. Its North America revenue jumped 42 percent to $37 billion, while international sales grew 29 percent to $18 billion. Revenue from subscription fees grew 49 percent to $3.2 billion. Advertising and other revenue rose 62 percent to $1.74 billion.

    Amazon Web Services (AWS) continued to be the fastest-growing and most profitable business of the company. The unit posted a 45 percent rise in sales, jumping to $5.1 billion, and saw its profit margin expand from the third quarter. AWS sales accounted for a whopping 64 percent share of Amazon’s total operating income.

    http://chronicleofnews.com/amazon-reports-largest-profit-ever/

Security

  • Crucial iPhone source code posted in unprecedented leak

    Critical, top secret Apple code for the iPhone’s operating system was posted on Github, opening a new, dangerous avenue for hackers and jailbreakers to access the device, Motherboard reported. The code, known as “iBoot,” has since been pulled, but Apple may have confirmed it was the real deal when it issued a DMCA takedown to Github, as Twitter user @supersat noted.

    iBoot is the iOS code that ensures a secure boot by loading and checking that kernel is properly signed by Apple before running the OS. The version that was posted to Github, supposedly by a Twitter user named @q3hardcore, was for iOS 9, but much of it likely still exists in the latest version, iOS 11.

    https://www.engadget.com/2018/02/08/crucial-iphone-source-code-posted-in-unprecedented-leak/

Software/SaaS

  • Oracle’s cloud bravado masks its database despair

    No, we’re not going to see Oracle’s database revenue fall off a cliff. But that might not be because its customers remain committed to the database leader. Instead, they may simply continue to pay for stuff they don’t actually use. As a recent Rimini Street survey showed, as much as 74 percent of Oracle customers are running unsupported, with half of Oracle’s customers not sure what they’re paying for. These customers are likely paying full-fat maintenance fees for no-fat support (meaning they get no updates, fixes, or security alerts for that money).

    https://www.itworld.com/article/3252244/database/oracles-cloud-bravado-masks-its-database-despair.html

  • Where Barry Padgett Plans to Lead Ariba

    The number one lesson by far is that you need to go in with the right drivers. The wrong driver is, “I have a bunch of data. How do I make money on the data?” There are a lot of examples where platforms have come out of the desire to monetize a resource or an asset that you already have, and that is a terrible model — number one, because you end up building the wrong set of services, and, number two, in general, you find over time that people aren’t really willing to pay for it. So you end up doing a bunch of pivots to figure out what your platform story really should be.

    When you go into platform transformation, you really need to do it from the lens of the customer. You have to think about “How does the customer get value out what they’ve already bought from you?” rather than, “How do I charge the customer more, or how do I take what the customer’s generating and create more opportunity for myself financially?” When you really think about it from a customer value perspective, you build out the right set of services in the right way.

    http://spendmatters.com/2018/02/07/creating-legacy-sap-beyond-barry-padgett-plans-lead-ariba/

  • Microsoft is reportedly shifting its Windows strategy as it tries to outmaneuver Apple and Google

    Thurott reports that Microsoft will no longer offer Windows 10 S as a standalone operating system. You could never buy it yourself, but computer manufacturers (OEMs, or “original equipment manufacturers” in industry parlance) could license it from Microsoft to pre-install on the computers they sold to customers.

    Instead, Microsoft will push a so-called S Mode onto all versions of the Windows 10 operating system, reports Thurott. When enabled, S Mode will make any version of Windows 10 act like Windows 10 S, with all of the benefits and tradeoffs therein.

    Microsoft had previously said that S Mode would be coming to Windows 10 for businesses in future updates; this would just bring it to all of the consumer versions, too.

    http://www.businessinsider.com/microsoft-windows-10-s-dead-or-alive-2018-2

Datacenter

  • Why Mainframes Aren’t Going Away Any Time Soon

    The focus on Linux isn’t the only motivator behind the upsurge in mainframe use in data centers. Increasingly, enterprises with heavy IT needs are finding many advantages to incorporating modern mainframes into their plans. For example, mainframes can greatly reduce power, cooling, and floor space costs. In markets like New York City, where real estate is at a premium, electricity rates are high, and electricity use is highly taxed to reduce demand, these are significant advantages.

    “There was one customer where we were able to do a consolidation of 25 x86 cores to one core on a mainframe,” Santalucia said. “They have several thousand machines that are ten and twenty cores each. So, as far as the eye could see in this data center, [x86 server workloads] could be picked up and moved onto this box that is about the size of a sub-zero refrigerator in your kitchen.”

    http://www.datacenterknowledge.com/hardware/why-mainframes-arent-going-away-any-time-soon

Other

  • Akamai has laid off 400 workers or 5 percent of global workforce

    Akamai, the Cambridge Massachusetts content delivery network and network services provider, announced they had laid off 400 people in their earnings call with analysts yesterday.

    On the call, Akamai CEO Tom Leighton indicated that the 400 people represented 5 percent of the company’s 8000 worldwide workforce. “As part of our effort to improve operational efficiency, we reduced headcounts in targeted areas of the business, most notably in areas tied to our Media business. Overall, we have removed about 400 positions or 5% of our global workforce,” Leighton told analysts.

    He went onto to say that the layoffs actually began at the end of last year and have spilled over into this week. The company sees this as part of an effort to get leaner and cut costs, an effort that predates Elliott Management buying a 6.5 percent stake in the company in December.

    https://techcrunch.com/2018/02/07/akamai-has-laid-off-400-workers-or-5-percent-of-global-workforce/?ncid=rss

  • Best Buy will stop selling CDs as digital music revenue continues to grow

    Despite no longer selling CDs, Best Buy will still sell vinyl for the next two years, which Billboard says is part of a commitment it made to vendors. Sources suggested that Best Buy’s music CD arm was only generating $40 million annually.

    As we’ve previously reported, during the first half of 2017, streaming services accounted for 62 percent of revenue from the US music market. The decline of CD sales has also sparked Warner Music Group to offer voluntary buyouts to its 130 staff working in physical product, according to Billboard.

    It’s not surprising that we’re no longer buying CDs — at least not for new music. The best-selling CD in 2016 was a Mozart boxset, which contained 200 CDs that were individually counted as a separate sale. Users who don’t buy music prefer to stream it via services like Spotify and Apple Music, and gadget makers aren’t really making CD players anymore.

    https://www.theverge.com/2018/2/6/16973538/bestbuy-target-cd-sales-vinyl-cassette

Photo: Adam Fossier