Tag: Verizon

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Supplier Report: 10/11/2019


Photo by Patrick Schöpflin on Unsplash

There has been talk of a recession coming and now we are starting to see the first signs. HP and WeWork announced thousands of employee eliminations as both companies struggle to realign and meet market expectations. Will this trend continue or was it specific to each company and their ongoing operational problems?

Facebook’s “cryptocurrency” Libra lost a major partner in PayPal and is coming under fire from Apple CEO Tim Cook. The company is also developing strategies should Elizabeth Warren take the White House and push for the company to break up.

Acquisitions/Investments

  • Verizon is buying virtual reality company Jaunt

    Verizon has acquired some assets of virtual reality video start-up Jaunt XR, the company announced Monday. Terms of the deal weren’t disclosed.

    As part of the deal, Verizon will own Jaunt’s software and technology, among other assets.

    The company, which was founded in 2013, established a foothold in virtual reality technology, developing hardware, software, tools and apps that enable brands and consumers to make high-quality VR content. Jaunt later launched a Netflix-style content library for VR headsets, before announcing in 2018 it would transition to augmented reality technology. The company has raised about $100 million in funding from Disney, Google’s venture arm GV and Redpoint Ventures, among others, and made the CNBC Disruptor List for 2017.

    https://www.cnbc.com/2019/09/30/verizon-is-buying-virtual-reality-company-jaunt.html

  • Apple May Have Acquired Motion Capture Company IKinema

    Apple may have recently acquired UK-based motion capture company IKinema, based on evidence from company filings and information shared by a MacRumors reader.

    IKinema offers animation technology that’s used for games, virtual reality, and more. Earlier this year, for example, IKinema partnered with Ubisoft for IKinema’s RunTime software for character creation. IKinema specialized in technology that allowed for real-time motion animation of virtual characters.

    https://www.macrumors.com/2019/10/03/apple-acquisition-ikinema/

Cloud

  • Inside Microsoft and Google Cloud’s battle for the enterprise

    Behind the scenes, however, Microsoft has made some not-so-subtle changes to their licensing that make it more expensive for organizations to transfer their on-premise Microsoft solutions to any cloud that doesn’t belong to Microsoft. In other words, Microsoft is sending a clear message that it wants you running your workloads on Azure. This type of behavior is not new for Microsoft.

    Cost reductions sound great but there is a large asterisk next to that cost reduction potential; you have to use Microsoft’s cloud. If you choose a competitor’s cloud, such as Amazon Web Services (AWS) or Google Cloud Platform (GCP), Microsoft is going to hit you with increased fees. In reality, this is really just a penalty for engaging with Microsoft’s competition.

    https://www.cio.com/article/3442339/inside-microsoft-and-google-clouds-battle-for-the-enterprise.html

Security/Privacy

  • The lack of cybersecurity talent is ‘a national security threat,’ says DHS official

    “It’s a national security risk that we don’t have the talent regardless of whether it’s in the government or the private sector,” said Manfra. “We have a massive shortage that is expected that will grow larger.”

    Homeland Security is already responding, working on developing curriculum for potential developers as soon as they hit the school system. “We spend a lot of time invested in K-12 curriculum,” she said.

    The agency is also looking to take a page from the the tech industry’s playbook and developing a new workforce training program that’s modeled after how to recruit and retain individuals.

    https://techcrunch.com/2019/10/03/lack-cybersecurity-professionals-threat-dhs/

    Looks like they are stealing a page from Israel.

  • Google Draws House Antitrust Scrutiny of Internet Protocol

    The new standard would encrypt internet traffic to improve security, which could help prevent hackers from snooping on websites, and from spoofing—faking an internet website to obtain a consumer’s credit-card information or other data.

    But the new standard could alter the internet’s competitive landscape, cable and wireless companies said. They fear being shut out from much of user data if browser users move wholesale to this new standard, which many internet service providers don’t currently support. Service providers also worry that Google may compel its Chrome browser users to switch to Google services that support the protocol, something Google said it has no intention of doing.

    “Right now, each internet service provider has insight into the traffic of their users, and that’s going to shift” as a result of the change, said Andy Ellis, chief security officer at Akamai Technologies Inc., which provides internet services to corporations but doesn’t support the new standard.

    https://www.wsj.com/articles/google-draws-house-antitrust-scrutiny-of-internet-protocol-11569765637

Software/SaaS

  • Zuckerberg Hates Warren’s Plan to Break Up Facebook. She Doesn’t Care.

    “If she gets elected president, then I would bet that we will have a legal challenge, and I would bet that we will win the legal challenge,” he said.

    “Does that still suck for us? Yeah. I mean, I don’t want to have a major lawsuit against our own government. That’s not like the position you want to be in. We care about our country and want to work with our government to do good things,” he added. “But look, at the end of the day, if someone’s going to try to threaten something that existential, you go to the mat and you fight.”

    Shortly after The Verge published Mr. Zuckerberg’s remarks, Ms. Warren responded by renewing her criticism of Facebook.

    “What would really ‘suck,’” she said, mimicking Mr. Zuckerberg’s language, “is if we don’t fix a corrupt system that lets giant companies like Facebook engage in illegal anticompetitive practices, stomp on consumer privacy rights, and repeatedly fumble their responsibility to protect our democracy.”

    https://www.nytimes.com/2019/10/01/us/politics/elizabeth-warren-mark-zuckerberg-facebook.html

  • Apple CEO Tim Cook slams Facebook’s Libra cryptocurrency as a power grab

    Speaking with the French newspaper Les Echos, Cook shot down any notion that Apple might be considering launching a digital currency of its own, given its recent investments in digital wallets, mobile payments, and consumer credit with the new Goldman Sachs-backed Apple Card.

    “No. I really think that a currency should stay in the hands of countries. I’m not comfortable with the idea of a private group setting up a competing currency,” Cook told the publication in an interview published today. “A private company shouldn’t be looking to gain power this way.”

    https://www.theverge.com/2019/10/4/20899271/apple-ceo-tim-cook-facebook-libra-cryptocurrency-criticism-power-grab
    PayPal is the first company to drop out of the Facebook-led Libra Association

    A high-profile, would-be partner like PayPal backing out from the effort before it’s even gotten off the ground is a big blow to Facebook and the Libra Association, which has been struggling under the weight of speculation that some of the big organizations, initially interested in collaborating on Libra, are now on the fence about the project, put off by wave of negative reaction from regulators and others that might lead to problems launching and ultimately growing the service.

    https://techcrunch.com/2019/10/04/paypal-looks-is-the-first-company-to-drop-out-of-the-facebook-led-libra-association/

Other

  • WeWork expected to announce major layoffs

    WeWork, the co-working business once valued at $47 billion, is expected to announce significant layoffs this month, Bloomberg reports. This follows reports the company was looking to slash as many as 5,000 roles, or one-third of its workforce.

    Now expected to go public in 2020 at a valuation as low as $10 billion, WeWork is also in negotiations with JPMorgan for a last-minute cash infusion to replace the capital expected from the now-postponed IPO, per reports. The company, now a cautionary tale, has been working with bankers in recent weeks to reduce the sky-high costs of its money-losing operation.

    https://techcrunch.com/2019/10/03/wework-layoffs/

  • HP to Cut Up to 9,000 Jobs in New CEO’s Restructuring Plan

    HP Thursday said it could eliminate 7,000 to 9,000 jobs from its roughly 55,000 workforce over the next three years. The cuts, once completed, should yield annual savings of about $1 billion, the company said at its annual securities-analyst meeting. HP is nearing the end of a three-year-old layoff plan that could eliminate up to 5,000 jobs.

    HP has been under pressure in recent quarters from a decline in the printing-supplies business that was once its biggest moneymaker. To help reinject growth, it plans to offer new ways to sell its products.

    https://www.wsj.com/articles/hp-to-cut-up-to-9-000-jobs-in-new-ceos-restructuring-plan-11570143485

  • Kroger will lay off hundreds of employees as online competition from Amazon bites

    Currently the grocer has 443,000 full-time and part-time employees across all of the chains it owns, including Kroger-branded stores, and Harris Teeter, Ralphs, and Fred Meyer stores. As for what roles the layoffs will hit the hardest, a Kroger spokesperson told CNBC that middle management roles were one of the ones being evaluated:

    As part of ongoing talent management, many store operating divisions are evaluating middle management roles and team structures with an eye toward keeping resources close to the customer.

    https://www.fastcompany.com/90412824/kroger-will-lay-off-hundreds-of-employees-as-online-competition-from-amazon-bites

  • Salesforce is building an office tower in Sydney, pledging 1,000 new jobs in the next five years

    Salesforce announced this week that it’s building another shiny tower. This one will be in Sydney with views of the harbor and the iconic Sydney Opera House. The company has also committed to adding 1,000 new jobs in the next five years and to building the tower in a sustainable fashion.

    As is Salesforce’s way, it’s going to be the tallest building in the city when it’s done, and will sit in the Circular Quay, part of the central business district in the city, and will house shops and restaurants on the main floor. As with all of its modern towers, it’s going to dedicate the top floor to allow for flexible use for employees, customers and partners. The building will also boast a variety of spaces including a Salesforce Innovation Center for customers along with social lounges, mindfulness areas and a variety of spaces for employees to collaborate.

    https://techcrunch.com/2019/10/01/salesforce-is-building-an-office-tower-in-sydney-pledging-1000-new-jobs-in-next-five-years/

  • How Tim Cook Won Donald Trump’s Ear

    Such engagement has proved risky for other chief executives. Facing public pressure, Under Armour Inc. ’s Kevin Plank, Tesla Inc. ’s Elon Musk and Uber Technologies Inc. ’s Travis Kalanick resigned from presidential advisory councils over disagreements with the administration. A similar resignation by Merck & Co. CEO Kenneth Frazier, who publicly criticized the president’s handling of violence in Charlottesville, Va., led Mr. Trump to unleash a barrage of tweets castigating the drugmaker for high prices.

    “There are only a handful [of executives] who have been able to thread the needle,” said Jeffrey Sonnenfeld, a Yale University management professor who has informally advised Mr. Trump over the years before he became president. “This is a newfound capability for Apple. Steve Jobs didn’t have influence in Washington, and Tim Cook has offered it.” He added that Mr. Trump’s volatility means the relationship with Mr. Cook could change, but that was unlikely in the near term.

    https://www.wsj.com/articles/how-tim-cook-won-donald-trumps-ear-11570248040

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Suppler Report: 5/10/2019

Apple and Microsoft are starting the push for the cloud… services. Apple is expected to derive 30% of their profits from services this year and much more in the future.  For Microsoft, it isn’t enough to host, they want to be a platform for productivity, IOT, and blockchain.

And as those companies succeed, others like Verzion and Oracle are struggling with their cloud services and acquisitions. Verizon is now looking to sell off Yahoo assets like Tumblr after users have fled from the platform. Oracle is expecting weaker companies to consolidate.

Acquisitions

Artificial Intelligence

  • IBM’s decision to halt sales of Watson AI: strategic move or admission of failure?

    At present, IBM says it will no longer develop or market the drug discovery application but will continue to support existing users of the software. It may be that the technology is simply not yet mature enough for deployment in certain capacities such as drug discovery, diagnosis and treatment recommendations despite indications of some success by other AI companies.

    However, given that AI employs machine learning, with further input of data from a variety of sources, the abilities and accuracy of the AI will most likely increase. With the pressure to commercialize a driving factor for many companies, there may not be enough time set aside for the numerous iterations and human participation necessary for developing and fine-tuning the technology.

    https://www.verdict.co.uk/ibm-watson-ai-healthcare/

Cloud

  • Accenture sued over website redesign so bad it Hertz: Car hire biz demands $32m+ for ‘defective’ cyber-revamp

    As Hertz endured the delays, it found itself immersed in a nightmare: a product and design that apparently didn’t do half of what was specified and still wasn’t finished. “By that point, Hertz no longer had any confidence that Accenture was capable of completing the project, and Hertz terminated Accenture,” the car rental company complained in a lawsuit [PDF] lodged against Accenture in New York this month.

    Hertz is suing for the $32m it paid Accenture in fees to get to that aborted stage, and it wants more millions to cover the cost of fixing the mess. “Accenture never delivered a functional website or mobile app,” Hertz claimed.

    Accenture told El Reg on Tuesday this week it believes Hertz’s lawsuit is “without merit.”

    https://www.theregister.co.uk/2019/04/23/hertz_accenture_lawsuit/

  • Verizon Looks to Unload Tumblr Blogging Site

    It is unclear how much Verizon might get for Tumblr, a free service with more than 400 million blogs. Yahoo paid about $1.1 billion for the New York-based site in 2013, when it was among a number of fast-growing startups such as online scrapbook Pinterest and news aggregation and commenting site Reddit.

    But Tumblr struggled to generate meaningful revenue for Yahoo and was eclipsed by other social media, such as Medium, Facebook and Instagram, which Facebook bought in 2012. Yahoo wrote down Tumblr’s value by $230 million in 2016.

    https://www.wsj.com/articles/verizon-looks-to-unload-tumblr-blogging-site-11556823135

  • Microsoft’s Satya Nadella uses a subtle fear tactic to win cloud business away from Amazon

    Nadella was reminding Read that unlike giant cloud provider Amazon, Microsoft isn’t competing with WPP. It isn’t a retailer competing with WPP’s customer’s either. And although it does have Bing and does sell ads, it also has an ad sales partnership with WPP.

    Nadella’s sales pitch is simple, and one used not just with ad agency giant WPP but with retailers, an industry Amazon has really clobbered: Do you trust a technology partner to store their data, handle their transactions, know the most intimate details of their business, if that tech partner is also a competitor?

    https://www.businessinsider.com/microsoft-subtle-fear-tactic-win-cloud-business-amazon-2019-5

  • Oracle CEO Mark Hurd says that consolidation is coming as ‘underfunded’ cloud software companies get bought up: ‘Many of the companies will go away’

    “Hurd’s analysis is correct,” Tim Bajarin, an analyst with Creative Strategies, told Business Insider.

    “Smaller SaaS companies are underfunded and will have trouble competing with the big players in this market. If they have unique technology they could become M&A targets. It is expensive to market and serve the SaaS markets and being under-capitalized will hurt their chances to compete for the same businesses big SaaS companies go after today.”

    Ray Wang, president of Constellation Research, agreed, saying: “We are still in a market of consolidation.”

    https://www.businessinsider.com/oracle-ceo-mark-hurd-cloud-software-consolidation-2019-5

Security/Privacy

  • Zero-day attackers deliver a double dose of ransomware—no clicking required

    Attackers have been actively exploiting a critical zero-day vulnerability in the widely used Oracle WebLogic server to install ransomware, with no clicking or other interaction necessary on the part of end users, researchers from Cisco Talos said on Tuesday.

    The vulnerability and working exploit code first became public two weeks ago on the Chinese National Vulnerability Database, according to researchers from the security educational group SANS ISC, who warned that the vulnerability was under active attack. The vulnerability is easy to exploit and gives attackers the ability to execute code of their choice on cloud servers. Because of their power, bandwidth, and use in high-security cloud environments, these servers are considered high-value targets. The disclosure prompted Oracle to release an emergency patch on Friday.

    https://arstechnica.com/information-technology/2019/04/zeroday-attackers-deliver-a-double-dose-of-ransomware-no-clicking-required/

  • Large GDPR Fines Are Imminent, EU Privacy Regulators Say

    Helen Dixon, Ireland’s data-protection commissioner, said at an event here that her office has received about 6,000 complaints since GDPR went into effect. Most have been minor, such as individuals having problems deleting their accounts with certain firms. But her office is now investigating 18 cases involving large data breaches, systemic privacy issues and other serious violations at technology firms, she said.

    Ms. Dixon said she plans to bring her first draft decisions for enforcement actions to the European Data Protection Board this summer. Other data protection authorities can raise objections.

    https://www.wsj.com/articles/large-gdpr-fines-are-imminent-eu-privacy-regulators-say-11556829079

Software/SaaS

  • Microsoft launches a fully managed blockchain service

    We’re not talking cryptocurrencies here, though. This is an enterprise service that is meant to help businesses build applications on top of blockchain technology. It is integrated with Azure Active Directory and offers tools for adding new members, setting permissions and monitoring network health and activity.

    The first support ledger is J.P. Morgan’s Quorum. “Because it’s built on the popular Ethereum protocol, which has the world’s largest blockchain developer community, Quorum is a natural choice,” Azure CTO Mark Russinovich writes in today’s announcement. “It integrates with a rich set of open-source tools while also supporting confidential transactions—something our enterprise customers require.” To launch this integration, Microsoft partnered closely with J.P. Morgan.

    https://techcrunch.com/2019/05/02/microsoft-launches-a-fully-managed-blockchain-service/

  • Services really are becoming a bigger part of Apple’s business

    This shift is already playing out in the company’s financials. While product sales dipped a bit year-over-year — down from $51.3 billion in the quarter that ran from January to March 2018 to $46.6 billion in the same quarter of 2019 — revenue from the services business climbed from $9.9 billion to $11.5 billion.

    In this fiscal Q2 quarter of 2018, Apple’s total revenue came in at roughly $61.1 billion; in the same quarter of 2019, it dipped to $58 billion. This works out to services accounting for 16.1% of Apple’s revenue in fiscal Q2 2018, but nearly 20% in fiscal Q2 2019. Apple CFO Luca Maestri says services now account for “one-third” of the company’s gross profits.

    https://techcrunch.com/2019/04/30/services-really-are-becoming-a-bigger-part-of-apples-business/

Other

  • Foxconn Chairman Meets With Trump as Wisconsin Plant Plans Fall Behind

    The Foxconn project is one of the biggest U.S. public-incentive deals ever offered to a foreign company, a more than $4 billion package of state and local tax breaks and infrastructure investment.

    President Trump has been involved with the Wisconsin project since its inception, and said he was the one who advised Mr. Gou to build in rural southeastern Wisconsin. At last year’s groundbreaking, President Trump touted the plant as a pillar of his plan to bring advanced-manufacturing jobs to the industrial Midwest and described Chairman Gou as “one of the most successful businessmen in the world, very few people even close.”

    But President Trump didn’t mention Foxconn in a Saturday night rally in Green Bay, a rare omission for a project he has described as “the eighth wonder of the world.”

    https://www.wsj.com/articles/foxconn-chairman-heads-to-wisconsin-plant-site-after-meeting-with-president-trump-11556810035

  • Alphabet Falls $1 Billion Short of Revenue Forecasts, Blaming Strong Dollar

    The law of large numbers is simple: As a company gets bigger, it becomes difficult to find new ways to make money and maintain rapid growth. The issue has dogged other big tech companies like Apple in recent years.

    Alphabet explained the revenue shortfall with a very big-company answer. It said the strong United States dollar dented revenue by $1.2 billion. Google executives rattled off a long list of currencies weakening against the dollar, including the euro, the British pound, Brazilian real and Indian rupee. The company said it expected foreign currency to be an issue again in the current quarter.

    Shares of Alphabet fell more than 7 percent in early trading on (last) Tuesday.

    https://www.nytimes.com/2019/04/29/technology/alphabet-quarterly-results-2019.html

  • Eric Schmidt to Leave Alphabet Board

    Mr. Schmidt, 64 years old, was appointed CEO in 2001, when Google was still privately traded and just three years old. Already a Silicon Valley veteran, he was brought in to provide managerial heft to the less experienced founders of the company, Larry Page and Sergey Brin. The interview process included a trip by the three men to the free-spirited Burning Man festival in Nevada.

    Board member Diane Greene, who was replaced as chief executive of the cloud division in January, also will leave the board, the company announced. Cloud has been a sore spot for Google, despite a big hiring push and the attention of some of the company’s top executives.

    https://www.wsj.com/articles/eric-schmidt-to-leave-alphabet-board-11556659629

Photo by Mitchell Orr on Unsplash

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Supplier Report: 12/21/2018

Verizon is taking a $4.6B write down of their AOL and Yahoo acquisitions, discovering what most people said at the time of their Yahoo purchase – they made a bad decision.

The company also announce over 10,000 Verizon employees will be volunteering to leave their positions.

Oracle continues to struggle with their cloud position in the wake of Thomas Kurian leaving for Google. The company continues to protest and take legal action against the DoD over the way they conducted the JEDI RFP… because that’s how you endear yourself to someone you want to do business with later.

Acquisitions

  • Intel and TPG in talks to sell McAfee to Thoma Bravo for significantly more than $4.2 billion

    Private equity firm Thoma Bravo is in early discussions to acquire security software company McAfee from TPG and Intel for a significant premium over the company’s 2016 $4.2 billion valuation, according to people familiar with the matter.

    Talks may still fall apart and a deal announcement isn’t expected soon, said the people, who asked not to be named because the discussions are private.

    https://www.cnbc.com/2018/12/14/intel-tpg-in-talks-to-sell-mcafee-to-thoma-bravo.html

  • SoftBank invests in parking startup ParkJockey pushing valuation to $1 billion

    Along with the SoftBank investment news, ParkJockey also announced that it was acquiring two of the largest parking operators in North America. The startup, with help from Abu Dhabi-based Mubadala Capital and debt financing from Owl Rock, said it had reached an agreement to acquire Imperial Parking Corporation, a North American-based parking management company often referred to as Impark. The agreement follows ParkJockey’s acquisition of parking management operator Citizens Parking Inc.

    The investment puts the ParkJockey valuation to more than $1 billion, reported Miami Herald.

    https://techcrunch.com/2018/12/10/softbank-invests-in-parking-startup-parkjockey-pushing-valuation-to-1-billion/

  • GE Announces New Industrial IoT Software Business

    In establishing GE Digital as a separate, wholly owned subsidiary, GE CEO Larry Culp is giving GE Digital perhaps its best chance of survival. He’s also creating an opportunity for GE shareholders to leverage any success down the road. But can GE Digital be successful as a standalone company?

    The opportunity before a new GE Digital is to capitalize on the reputation of Predix as a solid platform for industrial IoT. Unencumbered by having to supply IT services to the various GE industrial divisions, the new GE Digital should be more nimble and responsive to market opportunities.

    https://www.forbes.com/sites/forrester/2018/12/14/ge-announces-new-industrial-iot-software-business/#fc03cc94b1ce

  • Trello acquires Butler to add power of automation

    What Butler brings to Trello  is the power of automation, stringing together a bunch of commands to make something complex happen automatically. As Trello’s Michael Pryor pointed out in a blog post announcing the acquisition, we are used to tools like IFTTT, Zapier and Apple Shortcuts, and this will bring a similar type of functionality directly into Trello.

    https://techcrunch.com/2018/12/10/trello-acquires-butler-to-add-power-of-automation/

Artificial Intelligence

  • The Deadly Recklessness of the Self-Driving Car Industry

    The newest and most glaring example of just how reckless corporations in the autonomous vehicle space can be involves the now-infamous fatal crash in Tempe, Arizona, where one of Uber’s cars struck and killed a 49-year-old pedestrian. The Information obtained an email reportedly sent by Robbie Miller, a former manager in the testing-operations group, to seven Uber executives, including the head of the company’s autonomous vehicle unit, warning that the software powering the taxis was faulty and that the backup drivers weren’t adequately trained.

    “The cars are routinely in accidents resulting in damage,” Miller wrote. “This is usually the result of poor behavior of the operator or the AV technology. A car was damaged nearly every other day in February. We shouldn’t be hitting things every 15,000 miles. Repeated infractions for poor driving rarely results in termination. Several of the drivers appear to not have been properly vetted or trained.”

    https://gizmodo.com/the-deadly-recklessness-of-the-self-driving-car-industr-1831027948

Cloud

  • Oracle earnings: Chronic cloud concerns create crisis of confidence

    In a quarterly survey of 36 Oracle partners, J.P. Morgan analyst Mark Murphy found most results to be “underwhelming.”

    “In the aftermath of former President Thomas Kurian’s departure to Google, metrics are listless and dull for Pace of Business, Revenue Expectation, and Oracle’s Momentum / Technology Vision,” Murphy wrote. “‘Failure to innovate’ is being mentioned.”

    “Amazon, Microsoft MSFT SAP SAP and Google are most frequently mentioned as becoming more competitive with Oracle,” the J.P. Morgan analyst said. “Partners view Oracle as being ‘way back in the cloud arms race’ and ‘not sure they can catch up at this point.’”

    https://www.marketwatch.com/amp/story/guid/1FF18130-FD69-11E8-95C1-5E5DFA743B98

  • Amazon Intervenes in Oracle’s JEDI Lawsuit

    In addition to the alleged conflicts of interest, Oracle’s lawsuit takes issue with the Pentagon’s decision to award the contract to a single company, similar to arguments it made in a bid protest the Government Accountability Office denied in November.

    In its motion to intervene, AWS called Oracle’s allegations “meritless” and contended it has “direct and substantial economic interests at stake” in the lawsuit; the granted motion gives AWS the legal right to defend its proprietary, financial and reputational interests that could arise in the case.

    https://www.nextgov.com/cio-briefing/2018/12/amazon-intervenes-oracles-jedi-lawsuit/153559/

  • Verizon Admits Defeat With $4.6 Billion AOL-Yahoo Writedown

    The wireless carrier slashed the value of its AOL and Yahoo acquisitions by $4.6 billion, an acknowledgment that tough competition for digital advertising is leading to shortfalls in revenue and profit.

    The move will erase almost half the value of the division it had been calling Oath, which houses AOL, Yahoo and other businesses like the Huffington Post.

    https://www.bloomberg.com/news/articles/2018-12-11/verizon-writes-down-4-6-billion-of-value-of-aol-yahoo-business

Security

  • Chinese Hackers Breach U.S. Navy Contractors

    The data allegedly stolen from Navy contractors and subcontractors often is highly sensitive, classified information about advanced military technology, according to U.S. officials and security researchers. The victims have included large contractors as well as small ones, some of which are seen as lacking the resources to invest in securing their networks.

    One major breach of a Navy contractor, reported in June, involved the theft of secret plans to build a supersonic anti-ship missile planned for use by American submarines, according to officials. The hackers targeted an unidentified company under contract with the Navy’s Naval Undersea Warfare Center in Newport, R.I.

    https://www.wsj.com/articles/u-s-navy-is-struggling-to-fend-off-chinese-hackers-officials-say-11544783401

  • Equifax breach was ‘entirely preventable’ had it used basic security measures, says House report

    The report confirmed most of what was already known, but added new color and insights that were previously unreported. The credit agency failed to patch a disclosed vulnerability in Apache Struts, a common open source web server, which Homeland Security had issued a warning about some months before. The unpatched Apache Struts server was powering its five-decades-old(!) web-facing system that allowed consumers to check their credit rating from the company’s website. The attackers used the vulnerability to pop a web shell on the server weeks later, and managed to retain access for more than two months, the House panel found, and were able to pivot through the company’s various systems by obtaining an unencrypted file of passwords on one server, letting the hackers access more than 48 databases containing unencrypted consumer credit data.

    https://techcrunch.com/2018/12/10/equifax-breach-preventable-house-oversight-report/

    The people at Equifax want you to forget about this, we have to keep reminding ourselves that this was not acceptable and ensure other companies with this data are held to higher standards.

Software/SaaS

  • IBM Hopes To Strengthen ‘Do Not Call’ Registries With Blockchain

    The Telecom Regulatory Authority of India is hoping that by using blockchain to keep tabs on the system, it will make it easier to figure out who is abusing the system and how. The proposed platform would record who made a “Do Not Call” request, the telephone numbers accused of violating the request, and mobile telephone portability data. By having this information on a shared ledger, it will theoretically be easier to identify fraud quickly.

    https://www.ethnews.com/ibm-hopes-to-strengthen-do-not-call-registries-with-blockchain

Other

  • Verizon announces 10,400 employees will voluntarily leave the company

    Verizon today announced 10,400 employees are taking buyouts to leave the company. That’s about 7 percent of the company’s worldwide workforce. This is part of an effort to trim the telecom giant’s workforce ahead of its push toward 5G.

    https://techcrunch.com/2018/12/10/verizon-announces-10400-employees-will-voluntarily-leave-the-company/

  • Why Apple Chose Austin, Seattle and Culver City for Its New Jobs Push

    Each location where it announced expansion plans Thursday reflects a different facet of Apple’s evolving model. Culver City gives Apple a Hollywood homebase as it pushes into video programming. Seattle is a machine-learning hub where it can develop algorithms that personalize streaming-music playlists and improve Siri. San Diego and Austin offer semiconductor engineers who can advance the customized-chip efforts that help Apple wring more money out of its iPhones, iPads and Macs.

    https://www.wsj.com/articles/apples-new-job-push-reflects-shifting-strategy-and-changing-identity-11544792403

  • Why the Amazon Invasion in New York and Virginia Will Be Slow

    Before workers can move in, Amazon needs to remodel temporary offices it is leasing in Long Island City and Crystal City, which will take several months. Amazon already has plenty of office space in both metro areas, so it won’t need to rush construction, these people said. It could take roughly two years before Amazon is able to break ground on its new New York campus, and potentially a little sooner for Northern Virginia, due to various needed site approvals and other preconstruction

    https://www.wsj.com/articles/why-the-amazon-invasion-in-new-york-and-virginia-will-be-slow-11544697000

  • Huawei CFO freed on bail ahead of extradition

    A British Columbia Supreme Court justice has granted Meng bail after her attorney and family made a case for her conditional release. She’s paying $10 million CAD ($7 million of it in cash) and must stay in the province, report to a supervisor, agree to around-the-clock surveillance, pay for security, live in a Vancouver area house owned by her husband (Liu Xiaozong) and remain home between 11PM and 6AM.

    Liu also promised both $1 million in cash as well as the $14 million value of two Vancouver homes.

    https://www.engadget.com/2018/12/11/huawei-cfo-freed-on-bail/

    Inside Huawei’s Secret HQ, China Is Shaping the Future

    In the past two years, the largest internet companies formed semiconductor units to improve their cloud offerings and AI applications, such as image recognition and voice assistance. Huawei’s chip design unit, HiSilicon, has been around since 2004. It started working on customized chips to handle complex algorithms on hardware before the cloud companies did. Research firm Alliance Bernstein estimates that HiSilicon is on pace for $7.6 billion in sales this year, more than doubling its size since 2015.

    “Huawei was way ahead of the curve,” said Richard, the analyst.

    Yet in terms of sales and operations, Huawei’s cloud business is meager next to its larger rivals. The company spent about $13 billion on research and development in 2017, up more than 17 percent from the previous year. Its rivals in the cloud market have cut similarly sized checks. “Huawei has concluded that if it does not offer future solutions via the cloud, where its customers are migrating, someone else will,” said Siow Meng Soh, a research manager for GlobalData Plc.

    https://www.bloomberg.com/news/articles/2018-12-12/huawei-furthers-china-s-grand-tech-ambitions-amid-meng-detention

Photo by Lubo Minar 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

Posted on

Supplier Report: 10/26/2018

Amazon’s stock took a hit this week due to analysts’ lowered expectations about Q4 spending despite record profits. Will that retail downturn leak into corporate spending?

Oracle is having a moment thanks to their annual “Oracle World” conference. The company announced the acquisition of an AI company and maintained their tradition of s**t talking about their competitors in the press.

Acquisitions

  • Oracle acquires DataFox, a developer of ‘predictive intelligence as a service’ across millions of company records

    Oracle today announced that it has made another acquisition, this time to enhance both the kind of data that it can provide to its business customers, and its artificial intelligence capabilities: it is buying DataFox, a startup that has amassed a huge company database — currently covering 2.8 million public and private businesses, adding 1.2 million each year — and uses AI to analyse that to make larger business predictions.

    Terms of the deal do not appear to have been disclosed but we are trying to find out. DataFox — which launched in 2014 as a contender in the TC Battlefield at Disrupt — had raised just under $19 million and was last valued at $33 million back in January 2017, according to PitchBook. Investors in the company included Slack, GV, Howard Linzon, and strategic investor Goldman Sachs among others.

    https://techcrunch.com/2018/10/22/oracle-acquires-datafox-a-developer-of-predictive-intelligence-as-a-service-and-a-trove-of-company-information/

  • Facebook on Hunt for Big Cybersecurity Acquisition

    In its current acquisition efforts, the company is most likely to look at software that it could wrap into its own systems, including things like analytics or tools to flag unauthorized access, people familiar with its thinking said. Companies in these categories include Demisto, JASK and Swimlane, each of which are privately held and would likely cost somewhere in the hundreds of millions of dollars. It could also look for technology that could help users keep their accounts more secure or add privacy features, the people said. Some companies in this category include ZeroFOX and SafeGuard Cyber, both of which help assess accounts for risk of attack or prevent attacks. ZeroFOX has raised more than $80 million to date and SafeGuard Cyber $14.9 million.

    https://www.theinformation.com/articles/facebook-on-hunt-for-big-cybersecurity-acquisition

Artificial Intelligence

  • China’s Baidu challenges Google with A.I. that translates languages in real-time

    Baidu is China’s largest search engine and for that reason has often been compared to Google. Its latest product comes over a year after Google unveiled the Pixel Buds, a set of wireless headphones that it claims can do live translation.

    Huang said Baidu is looking to integrate the AI interpreter into its Wi-Fi translator, a product it unveiled earlier this year which is both a portable internet hub and translator. The company will also use this technology to translate speeches at its annual Baidu World Conference on November 1 in Beijing, China.

    https://www.cnbc.com/2018/10/24/baidu-challenges-google-with-ai-that-translates-languages-in-real-time.html

Cloud

  • Oracle’s Larry Ellison keeps poking AWS because he has no choice

    This was about showmanship. It was about chest beating and it’s about going after the market leader because frankly, the man has little choice. By now, it’s well documented that Oracle was late to the cloud. Larry Ellison was never a fan and he made it clear over the years, but today as the world shifts to a cloud model, his company has had to move with it.

    To make matters worse, Oracle’s late start puts it well behind market leader AWS. Hence, Ellison shouting from the rooftops how much better his company’s solutions are and how insecure the competitors are. Synergy Research, which follows the cloud market closely, has pegged Amazon’s cloud market share at around 35 percent. It has Oracle in the single digits in the most recent data from last summer (and the market hasn’t shifted dramatically since it came out with this data).

    https://techcrunch.com/2018/10/24/oracles-larry-ellison-keeps-poking-aws-because-he-has-no-choice/

  • Microsoft crushes quarterly earnings as cloud revenues rise

    Azure revenue grew 93 percent during the company’s fiscal third quarter and 89 percent during its fourth quarter ended in June. Microsoft does not break out specific revenue dollar figures for Azure.

    Microsoft’s commercial cloud business — which combines Azure with subscription cloud-software services Microsoft 365 and Dynamics 365 — also grew at a slightly slower rate than during the previous quarter, but still increased 47 percent to $8.5 billion.

    https://www.seattletimes.com/business/microsoft/microsoft-crushes-quarterly-earnings-as-cloud-revenues-rise/

Security

  • Yahoo to pay $50M, other costs for massive security breach

    Yahoo has agreed to pay $50 million in damages and provide two years of free credit-monitoring services to 200 million people whose email addresses and other personal information were stolen as part of the biggest security breach in history.

    The restitution hinges on federal court approval of a settlement filed late Monday in a 2-year-old lawsuit seeking to hold Yahoo accountable for digital burglaries that occurred in 2013 and 2014, but weren’t disclosed until 2016.

    https://www.apnews.com/2af6d21f80aa4e9483fa32e26f03417c

  • Japan and China Are Getting Along Better, but Not When It Comes to Tech

    Yet Japanese government and business leaders express views in line with Vice President Mike Pence’s recent depiction of China as a nation that seeks technological dominance “by any means necessary” including “forced technology transfer [and] intellectual property theft.”

    China is “making unacceptable demands and seeking to exclude foreign businesses,” said a top Japanese official.

    One response, the official said, would be to block Chinese tech companies from global markets.

    https://www.wsj.com/articles/tech-rivalry-shadows-japan-china-summit-1540306548?ns=prod/accounts-wsj

Software/SaaS

  • Linus Torvalds is Back With Linux

    Almost exactly a month after Torvalds’ self-imposed exile, he is back at the helm of the project he started nearly three decades ago. In a note sent to the Linux Kernel mailing list on Monday, Greg Kroah-Hartman, a lead Linux developer, said that he is “handing the kernel tree back” to Torvalds.

    “These past few months has [sic] been a tough one for our community, as it is our community that is fighting from within itself, with prodding from others outside of it,” Kroah-Hartman wrote. “So here is my plea to everyone out there. Let’s take a day or two off, rest, relax with friends by sharing a meal, recharge, and then get back to work.”

    https://motherboard.vice.com/en_us/article/3km9qb/linus-torvalds-is-back-with-linux

Datacenter/Hardware

  • Investigating Implausible Bloomberg Supermicro Stories

    In this article, we have shown why the technical details of the Bloomberg alleged hack are inaccurate and/or implausible. These technical details were offered to Bloomberg through anonymous sources, so we have no way of doing further fact-checking. We showed why, even if a chip can be produced and placed it would not work as Bloomberg reports. CEOs such as Tim Cook of Apple and Charles Liang of Supermicro and all of the named companies have said that the reporting was untrue or inaccurate. The three security experts named in the two Bloomberg pieces have expressed reservations about what and how Bloomberg has presented the story.

    Bloomberg is standing by their piece, citing 17 sources and over 100 interviews. It seems 9 sources between Apple and Supermicro have contradicting evidence offered by CEOs with a duty to make truthful statements about their companies. There are 2 cited security experts who have reservations, as does the lynchpin expert in the follow-up piece but we do not know if they are included in the tally.

    https://www.servethehome.com/investigating-implausible-bloomberg-supermicro-stories/

Other

  • SoftBank Chief Is Said to Have Canceled Appearance at Saudi Conference

    Word of Mr. Son’s decision not to attend came on Tuesday, the first day of the conference. A representative for SoftBank, the Japanese internet, energy and financial conglomerate, did not immediately respond to a request for comment

    However, Saleh Romeih, an executive with Softbank’s Vision Fund, the biggest technology fund on record, spoke on a panel at the conference on Tuesday, a spokesman for the fund said. The Saudi government is providing $45 billion of the Vision Fund’s nearly $100 billion.

    https://www.nytimes.com/2018/10/23/business/saudi-investment-softbank.html

  • Amazon shares fall as record profits are offset by conservative holiday forecasts

    Amazon is still raking in the cash, but its slower than expected customer growth in its web services offerings and a weaker than expected sales outlook for the holiday season shook investor confidence and caused the stock to slide around 5 percent in after-hours trading.

    Profits for the company continued to soar, reaching $2.9 billion, or $5.75 per share, up from $2.5 billion in the second quarter, and handily beating analysts’ estimates of $3.14 per share. Those earnings were offset by slower revenue growth at $56.6 billion versus the $57.1 billion analysts had expected.

    https://techcrunch.com/2018/10/25/amazon-shares-fall-as-record-profits-are-offset-by-conservative-holiday-forecasts/

  • Silicon Valley’s dirty secret: Using a shadow workforce of contract employees to drive profits

    It’s not only in Silicon Valley. The trend is on the rise as public companies look for ways to trim HR costs or hire in-demand skills in a tight labor market. The U.S. jobless rate dropped to 3.7 percent in September, the lowest since 1969, down from 3.9 percent in August, according to the Bureau of Labor Statistics.

    Some 57.3 million Americans, or 36 percent of the workforce, are now freelancing, according to a 2017 report by Upwork. In San Mateo and Santa Clara counties alone, there are an estimated 39,000 workers who are contracted to tech companies, according to one estimate by University of California Santa Cruz researchers.

    https://www.cnbc.com/2018/10/22/silicon-valley-using-contract-employees-to-drive-profits.html