Equifax hack unveiled

Equifax hackers traced to China’s People’s Liberation Army

The Department of Justice has alleged that four individuals who are part of the Chinese People’s Liberation Army were behind one of the world’s largest data breaches, exposing names, passwords and credit information of 147 million people. The hackers exploited a vulnerability in Apache (web) software that was publicly announced, along with a fix. Equifax did not implement the fix for over a week, giving the bad actors time to break in and establish a foothold from which they collected Equifax employee’s credentials — giving them easy access without relying on the Apache vulnerability. From their software base camp, the hackers spent several months carefully studying the Equifax file structure and built a number of schemas to harvest data without detection. Equifax was found, by the DOJ, to have many security weaknesses that made the hacking much simpler. Wired

dis-rup-shun: If four well-trained people gained access to nearly half of all U.S. citizen’s credit information in a matter of months several years ago, chances are good that multiple parties have already quietly gained access to essentially every citizen’s data by now — they just haven’t been caught. Imagine if you will, warfare in which one nation essentially freezes its enemy population’s assets and wrecks their ability to conduct simple transactions, dissolving their net worth instantly. Gold bars buried in the back yard, anyone? Expect data security software and consulting companies to thrive in this dangerous new world.

What you need to know about the Internet of Things

If you have a strong command of the Internet of Things, then skip this article. If you would benefit from a concise explanation of what is IOT, how did it emerge, and where is it going, then read the article. To be really brief, the Internet of Things is the state by which any device with a processor is connected to the Internet so that it can be controlled by other devices (smartphone, for example), can collect data during its use, and can share that data with something else. The benefits are thousands of devices that know us and serve us like we like to be served, and the risks are that bad players misuse the information that things collect and use it against us. Wired

dis-rup-shun: According to Wired, an inflection point for consumer IOT was the birth of Amazon Alexa, in 2014, following Apple’s Siri, several years later. Alexa took the mystery out of smart home and IOT products for some, but solidified the distrust of “big brother” for others. When all of our devices are dependent upon Wi-Fi to run, what do we do when our service goes out?

Sony Pictures Exec hired to run Amazon Prime Video

Mike Hopkins, formerly chairman of Sony Pictures Entertainment, will run Amazon’s Prime Video and Amazon Pictures units. Hopkins will report directly to Bezos, being one of a few direct reports. CNBC

dis-rup-shun:  The lines between traditional TV services and the new world of streaming continue to blur. Streaming services must have their own studios, period, as content is the primary differentiator. In this way, the new face of video will look a lot like the early days of movies, when a handful of movie studios owned movie theaters around the country and controlled distribution of their content. Today, streaming distributors control the studios making the content, hence becoming more vertically integrated.

Microsoft’s first Android phone is spotted

Spy photos captured pictures of Microsoft’s self-branded Surface Duo, which runs Android. The photos demonstrate that the clam shell of thin glass can be oriented in multiple way to create multiple layouts — including several screens of different content, or content across multiple surfaces. The device, while open, appears to be smaller than an iPad mini, but larger than the largest Samsung Galaxy phone. Arstechnica

dis-rup-shun:  Is it too late for Microsoft to hew out a share of the mobile phone market? Missing the smartphone market was one of Steve Ballmer’s biggest blunders, and one that nearly cost the company its position as a tech giant. The company was too determined that its bloated WindowsCE operating system would eventually prevail, and dismissed Nokia’s and Motorola’s early designs until it was too late. Microsoft’s Surface line caters to premium buyers, so there is a chance that the surface can garner a slice of the premium and profitable end of phablet buyers, and perhaps the company will use its foothold to take a bigger share of the smartphone market.

 

Autonomous vehicle enthusiasm waning

Money flow is moving from autonomous to electric vehicles

Investment funds for autonomous and ride sharing ventures are drying up as money turns toward electric car development. Autonomous vehicles are years away, have uncertain regulatory hurdles, and may not be profitable. Car makers want to make and sell cars, not invest in ride sharing alternatives to ownership. Tesla’s skyrocketing share price, combined with the lower cost of making EVs, has automakers anxious to hasten the transition to electric cars and is shifting the focus of investment to electric from autonomous. Wired

dis-rup-shun: Car makers have to be disrupted in order to shift their focus from the beaten path. Just as Henry Ford II demonstrated in Ford vs. Ferrari, it takes getting insulted to alter the status quo, and it is safe to say that Tesla’s valuation over $100 billion is an insult to makers of many times as many cars. Time to double down on electric cars and see how fast the world’s drivers will adopt the faster, lighter, cheaper, but shorter range vehicles. Expect to see better batteries double the range of EVs in the next 3 to 5 years, as new models will be increasingly electric. Despite innovations, that cross country marathon trip will still be a challenge if one has to charge every 5 to 7 hours.

What to do when your smart home is controlled by mobile apps

As the smart home slowly emerges, control of new internet connected devices is through mobile apps and smart speakers, but that becomes a challenge if a guest or house cleaner wants to control lights, locks and other connected appliances. Brilliant, a company that makes programmable controls for the walls, is addressing that problem. For $399 to $349 per room, you can retrofit light switches to programmable touch panels that control all of your connected home systems — without an app and without having to know what to tell Alexa, Google or other smart speaker what to do. TechCrunch

dis-rup-shun: Brilliant’s solution is a bit ahead of the market in that most homes have not so fully converted to smart systems that they don’t have tactile controls, but most of us are experiencing app overload. Having a touch panel on the wall in key places in the home will enable us to actually leave our smartphones in another room and not have to scroll through multiple apps as we add more home systems.

Coronavirus could delay tech products for rest of year

Manufacturing plants in China are set to open today, a delay of one week after being closed down for the Chinese Lunar New Year festivities. Due to the caronavirus, manufacturers extended the holiday. Despite the shut down being only one extra week, the delay could cascade throughout the supply chain, especially for hard to come by parts, impacting many devices, including iPhones, and potentially putting a squeeze on holiday 2020 supplies. CNBC

dis-rup-shun: The outbreak has served to remind people around the world that despite tariffs, trade wars and quotas, the world economy is tightly integrated. Even if the coronavirus stops spreading, the interdependence on workers, designers, and business specialists won’t, making it difficult to maintain the impressive pace of bringing tech products to market.

Apple fined $27M in France for throttling

Apple failed to let users of older iPhones know that iOS updates 10.2.1. and 11.2, in order to protect phones from weaker batteries, throttled performance at certain times. France’s watchdog organization DGCCRF took issue that Apple failed to alert users of this situation, and had failed to provide a downgrade path for users that wanted to return to older OSes to remove the limitation. The company has agreed to pay a $27M fine. TechCrunch

dis-rup-shun: While $27M to Apple is lunch money, the reprimand comes at a time when Apple is working hard to boost its image as the consumer friendly company, that safeguards consumer data better than the other Big Tech companies. The action is another proof point that Europe’s technology regulators are far ahead of those of the U.S. — implementing not only GDPR data privacy policies, but enforcing policies already determined. The U.S. is only now considering national legislation in the wake of California’s just initiated data privacy policy, known as CCPA.

 

Console wars nearing last battle

End of console wars: XBox says real competition is Google and Amazon

Arch console rivals Sony and Microsoft will both release next gen consoles for the holiday season, but Microsoft says this is the beginning of a divergence from the console business as it was, as Google, with its Stadia games service, and Amazon, with no game service yet, are the real competitors. Yahoo!

dis-rup-shun: It is fascinating to watch the tectonic plates of tech shift before our eyes and here is a movement. Microsoft, Google and Amazon have something that Sony does not — big, hungry and high profit cloud services. Big clouds, fueled by 5G networks, make for great gaming experiences across any device platform. Will Sony be successful playing the role of old school console maker, or does it have a trick up its sleeve? Apple has launched its Arcade game service and is targeting the casual gamers — a market that is not core to Xbox or Playstation. Keep your old console to show your grandchildren what gaming looked like in the dark ages of the early 21st century.

Smart nuts and bolts — IOT in construction 

Hilti Corporation, a construction parts company based in Lichtenstein, is producing a family of heavy construction nuts and bolts that include a code on each part. The part is scanned with a smartphone running the Hilti app, and data regarding where and when it was installed is recorded and tracked. Dallas Innovates

dis-rup-shun: The productivity gains by both having additional information about every part in a project, as well as the time savings and error reduction from eliminating manual recording and tracking make connected construction safer, faster and less tolerant of errors. Expect to see an increasing number of parts — not just high value parts — coded and easily scanned so that the cloud knows where they are and when they were installed.

Chinese phone makers unite to rival Google Play Store

Google’s Play Store is estimated to have earned Google $8.8 million last year. As the Play Store is banned in China, Chinese phone users have to go to multiple app stores to purchase the apps they want, making it difficult for app developers to create critical mass. Chinese phone makers have united to form a coalition called the Global Developer Service Alliance, enabling developers to upload new apps to multiple app stores at once, replacing the need for the Play Store. Countries expected to participate include China, India, Indonesia, Russia, and Malaysia. The Verge

dis-rup-shun: Trade wars and sanctions are painful, but as “they” say, what doesn’t kill you makes you stronger. The Chinese tech vendors are finding ways to work around political boundaries and gaining market share while reducing buyer friction. Huawei, cut off from Android services by Google, has begun development of its own phone OS, called Harmony OS. Expect to see other Chinese manufacturers offering Harmony OS phones if Huawei opens up licensing, working around Google in some of the world’s largest markets.

All Google phones will block robocalls

According to the YouMail robocall index, 4.7 billion robocalls were made in the U.S. in January alone. That equates to 1,800 per second and 14.4 calls to each person. All Google Pixel phones will now have the ability to run its Call Screen feature which blocks (some) robocalls. CNBC

dis-rup-shun: Despite legislation blocking robocalls, they are a thing of our future. Expect to see phones compete and differentiate on their ability to effectively block calls and intelligently determine when the call is legit. This feature may become as important to smartphone buyers as a snazzy camera as smartphones are quickly becoming our primary business, as well as personal, communications device.

Disney Plus is a smash hit

Disney Plus already has 45% as many U.S. subs as Netflix

Disney’s streaming TV service has been out slightly over two months and already has 28.6 million subscribers in the U.S.  Netflix, at the end of 2019, had 61 million U.S. subscribers and 167 million on the planet, according to Statista. Comparing U.S. only, Disney Plus is already almost half the size of Netflix. The Star Wars Mandalorian and Marvel properties, plus a very attractive monthly rate, have fueled new subscriptions. CNET

dis-rup-shun: Now we understand why AT&T spent billions on Time Warner ($85 billion, not counting three years of legal fees), and why Comcast bought NBCU. If you are a network and don’t own really compelling content, your chances of competing in the streaming wars are slim. If you don’t have a streaming service, your chances of surviving the great video revolution of the 2000s are slim. The Mouse has been buying up video assets and studios in the past few years, as Disney has clearly figured out how to compete in the Netflix age.

Smart speakers still not used for purchases

eMarketer has lowered its forecast for smart speaker sales, signaling that this product may be approaching maturity, at least for the early majority buyers. eMarketer’s forecast for speaker penetration is 83.1 million users. The firm estimates that 21.6 million users will have made a voice purchase by the end of this year. The desire to see a product and fears of security are cited as reasons for reluctance to purchase on a speaker.

dis-rup-shun: The fact that 21 million voice purchases have been made indicates that this will become a significant shopping method. In the meantime, Google and Amazon continue to battle to become the voice hub of the home. The ways to monetize the money losing device sales are numerous:

  1. The party that owns the home hub sets the standards for connected home devices, determining which radios, which interfaces and even which cloud services work best — potentially shifting millions of users towards a complementary product or service.
  2. People’s primary use of smart speakers is to listen to music. If device vendors can steer people to the vendor’s own music service (this has not been terribly successful to date), then monthly fees for music subscriptions will add millions to the top line.
  3. The home hub can serve as the light switch and voice-thermostat, providing  feedback on energy usage and energy spending. Energy utilities have great incentives to be a part of a home energy hub.
  4. Senior care, as shown in Google’s Super Bowl commercial, can be impacted by a smart speaker, reminding grandmother that it is time to take medicine, or helping her remember things like the day of week or arrival times for care givers.

Would you consider a separate camera?

For those that think photography is more than smartphone pics, cameras also continue to get better. The Fujifilm X100V features a slim body (not as slim as a smartphone), a 24-megapixel APS-C sensor and image processor, and OLED viewfinder. This can be had for about $1,400. TechCrunch

dis-rup-shun: Camera sales are down, and the camera quality of smartphones is getting crazy good. But for that European vacation or safari trip, a camera is still preferred and the image processing technology is following Moore’s Law, getting better and cheaper each year. The question is, do you go for a digital SLR with the great but bulky lens, or do you go with a pocket camera like the Fujifilm X100V?

Sunrise alarms — better than smartphone alarm clock

A new product category is born to fill the space once occupied by the erstwhile clock radio. It is designed especially for those who sleep in a room with no windows. The devices emulate daylight by changing hue and intensity to simulate the rising and setting of the sun. They can also play music, show the time, and be controlled by an app. Reviewed in Wired are the Homelabs Sunrise Alarm Clock, Philips Wake-Up Light (HF3520), Casper Glow Light, Philips SmartSleep Connected Sleep and Wake-Up Light Therapy Lamp, Lumie Bodyclock Active 250, and Totobay Wake-Up Light.

dis-rup-shun: Inventing new product categories is a great way to embrace the smart product disruption. That’s what Nest did with the dumb thermostat, and launched a new industry. Of course Amazon’s Echo is a home run, as is Roku, the smart TV, and smart mattresses. Alexa-powered microwave ovens have been a flop, as have been internet connected refrigerators. It is time for more creative thinking about how to replace products displaced by smart products.

Women in tech lambast Silicon Valley

Women in tech speak out against Silicon Valley

The steady stream of female authors writing about disillusionment with jobs in Silicon Valley continues — Anna Wiener has written “Uncanny Valley,” a memoir of her tech jobs in the Valley. Wiener joins a number of high profile former and current tech employees that have called out the inequities, harassment and moral compromise found at tech jobs in Silicon Valley. CNBC

dis-rup-shun: What are we to make of this growing disillusionment of jobs with Big Tech? Perhaps the collegiate, “no rules” atmosphere of startups is being carried into large tech companies that have real policies and an employee handbook. Working in Silicon Valley means working in a more relaxed environment, but with out sized goals to conquer a niche and become wildly successful. Perhaps the startup mentality, when carried into bigger tech firms, becomes dangerous and unchecked, and with IPOs at a low point, and awareness of workplace abuse on the rise, change is afoot. Expect to see more formality and clearly stated policies, even in smaller Silicon Valley operations.

Google flirts with $1 trillion, but with murky future

Alphabet/Google remains one of the most amazing stories of American business, rising to a valuation close to $1 trillion in only 25 years. It is in the company of Microsoft, Apple and Amazon, all above or close to $1 trillion. The company, however, has failed to significantly diversify its revenue base beyond search advertising, which contributes 84% of total revenue. While there is no imminent disruptor that will unseat Google, unlike its trillion dollar brothers who have multiple successful business units, Google remains dependent on the same business that it launched 25 years ago. Wired

dis-rup-shun: Despite the company’s reliance on search advertising, the company powers the majority of the world’s mobile phones with its Android OS, and its mapping technology may form the foundation for autonomous vehicles. The company, with its Android, Nest, YouTube and many powerful apps, provides a great deal of utility. The company’s deployment of free apps and an open mobile operating system have endeared it to many, but have proven that it is hard to make money at a zero price tag. With a new CEO, perhaps we will see some bold new initiatives, or at least bold new pricing, from Google.

Google’s Loretta Super Bowl ad called “evil”

Google, through a heart warming Super Bowl advertisement, suggested that its Google Assistant could help keep a senior widower’s memories of late wife Loretta alive. The senior tells Google to remember certain thinks about Loretta and the system displays photos of the couple. Tech Blogger Palmer calls this advertisement evil, as the company does not warn, like the Surgeon’s General warning on cigarettes, that all of these intimate details will be used to improve Google’s ability to target advertisements to the senior. Shelly Palmer

dis-rup-shun: Yes, every user of Google’s products should be able to easily determine what personal data is being used by what application. This should be accomplished through a personal data dashboard, much like that now offered by the everyone’s favorite villains, Facebook. But please, Shelly, can we not share in the dream that technology, be it from Google, Amazon, Apple, Microsoft, and others, can be effectively used to improve the lives of seniors? It stands to reason that distrust of tech is likely highest among seniors, who have a number of good reasons to resist it, but also have much to be gained by automating their lives. Data, and sales figures, suggest that a very large percentage of our society is happy to pay for services such as memos, photo storage, mapping, chat and email by giving up personal data.

A.I. is like teenage sex (and its happening in HR)

A.I. is like teenage sex,” says Frida Polli. “Everyone says they’re doing it, and nobody really knows what it is.” Fortune summarizes how HR departments are increasingly using AI in the recruiting and vetting process. Here is where AI use is growing at HR:

  1. Chat bots for recruiting
  2. Deep background checks
  3. Employee advisers
  4. Management coaches
  5. Employee review helpers

dis-rup-shun: While AI is automating much of the employee management process, it makes networking that much more important as personal connections remain far more valuable than AI assessments, that is until your personal connection introduces you to the chat bot that you have to convince to hire you.

 

The end of insurance, transportation and retail

Extinct in 20 years: insurance, transportation and retail

According to Dave Jordan, global head, consulting and services integration at Tata Consultancy Services, these industries will be as good as gone by 2040. Insurance, according to Jordan, will be all but unnecessary with autonomous vehicles and will be absorbed into other transactions. Autonomous vehicles will eliminate car ownership altogether, and maker technologies — that is, the ability to print our own products will eliminate the need for retailers. TechRepublic

dis-rup-shun: While Jordan’s warnings of massive restructuring and redefinition of industries is good to contemplate, his predictions, with the exception of car ownership, are a bit extreme. There are many things in our lives to insure such as houses, so insurance for businesses and consumers will not go away but auto insurance will certainly constrict. Personal car ownership, except for hobbyists, does seem to be a necessary evil that we will be glad to eliminate. Retail, however, serves many purposes, including providing an important communal experience and for that reason, will not go away. Jordan, however, is certainly right to claim that these industries should brace for radical change.

Electric Hummer pickup truck coming in 2021

On the heels of the Tesla CyberTruck announcement comes news of an upcoming, all electric pickup branded Hummer, by General Motors. Release is expected in 2021. CNET

dis-rup-shun: Is it marketing irony that the beloved-by-some and hated-by-environmentalists Hummer is being reborn as an all electric vehicle? The giant gas guzzler was retired in 2010 at the time of GM’s bankruptcy. In an unexpected twist, electric vehicles became status symbols, thanks to Tesla and its CyberTruck announcement that has drawn mixed reactions, but plenty of reactions. The CyberTruck buzz has proved that buyers, including EV buyers, want original, exotic, edgy and even expensive models, and GM plans to deliver in an all new EV Hummer.

IBM’s Rometty follows Brin and Larry Page off the ship

Ginny Rometty has announced her departure from the CEO post at IBM. During Rometty’s eight years at the helm, the company’s value has dropped 24%, making it the worst performing large tech company. The next CEO, Arvind Krishna, comes from IBM’s cloud business. CNBC

dis-rup-shun: Rometty took a cue from Google founders Brin and Page and got out under cover of a strong economy and strong sector stock prices. IBM has been living on its strong brand and has been slow to change while Amazon, Google, the Big 4, Tata, Infosys and others have eaten its lunch. Rometty was slow to double down on cloud computing and shake up the old guard that makes up Big Blue, and the board never demanded fresh leadership. Now shareholders look to Krishna to pull off a miracle.

Apple updates its maps and Look Around

Apple has invested millions to upgrade its mapping data, relying less on partners and investing heavily on its own mapping data. These improvements will likely not be noticed by consumers, except that Apple’s Street View-like app, Look Around, that provides a person’s-eye-view of addresses, will be better. Google’s mapping technology has been, and likely will remain, well ahead of Apple, but the Cupertino company is striving to close the gap in hopes that iPhone users will not continue to favor Google Maps on their devices. Wired

dis-rup-shun: Online and interactive maps have become essential to life, whether tethered to an in-car navigation system, guiding an Uber or Lyft, or getting guidance on the streets. Advertisements, websites and weather services are inextricably linked to maps and autonomous vehicles will be critically dependent on mapping data. The company that owns the best maps will be to the rest of the online world what Amazon.com is to the online retail world…in control.