California data privacy law enacted

California data privacy law started yesterday

California has now enacted the California Consumer Privacy Act, a law requiring any major company operating in the state to allow consumers to opt out of having data sold to third parties. While enforcement is difficult, the fines for violators are very large — $2,500 per user per data item. Wired

dis-rup-shun: This law is the first of its kind in the U.S. and is long overdue. Other states will likely follow suit, adding pressure on the U.S. Federal Government to pass a similar, and possibly more comprehensive law, making it easier for businesses to comply. The law is similar to Europe’s GDPR, but falls short of the ideal model in which a common data dashboard can be accessed to enable consumers to specific what, when and how data can be used. Expect strong evolution and development of nationwide data privacy laws in 2020, thanks to California’s leadership.

Virtual fitting rooms coming to retail

Former Walmart CEO Bill Simon predicts that retailers will lean heavily on technology to further differentiate brick and mortar stores — seeking to maintain an edge on online retailers. One such technology will be the ability to scan any item into a smartphone and virtually try it on. CNBC

dis-rup-shun: Competition makes things better, and we are already seeing the brick and mortar retailers that survived fallout from the Amazon Effect make shopping better with offers such as same day curb-side pickup (Target), and more knowledgeable sales clerks (Best Buy). Better in-store experiences, including great displays, elegant and inviting spaces and cleaner, better lit interiors are benefits. By using better technologies, including holograms, digital signage, Bluetooth beacons, apps and augmented reality, retailers will make certain that the shopping experience is a remarkable experience, and no less convenient than online stores.

Will authentication apps become common in 2020?

Authenticator apps are third party apps that provide a second method, in addition to your password, to secure your applications. Because text messages occur outside of the tightly secured infrastructure of your network providers, third-party authenticators are more secure. A number of leading providers are Google, Microsoft, Authy, LastPass, and DuoMobile, and there is a good chance you will be using one by the end of the year. Gizmodo

dis-rup-shun: Authenticators are important and a welcome addition, but still a bit clunky to use, and they don’t fix the problem of having to remember dozens of passwords for different accounts. The problem of authentication, however, is being addressed rapidly, and access programs will continue to improve. Bad actors, of course, will move just as quickly as tech innovators and will find ways to break new authentication tools — a reality of the digital age — and assurance that the data security and authentication industries are solid growth industries.

What to expect in smartphones in 2020

Phones will continue to get more expensive, according to CNET as faster charging, better CPUs, higher resolution cameras, and foldable screens find their way into new devices. The question is if foldables will catch on, or be a passing fad.

dis-rup-shun: What we do know is that 5G networks have not been ready for prime time, but that will change by year end and blazing speeds should be perceivable to people who live in major metropolitan areas. This will be a reason to upgrade, and will lead to strong new phone sales in H2 of this year. With higher resolution cameras and blazing fast 5G, expect everyone to be a photo journalist, sharing even more photos and especially more videos, as the hybrid still/video snapshot becomes even more like a video.

Amazon Fire tablet great at half price of iPad

Newest Amazon tablet “really great” at half the price of iPad

Amazon’s latest Fire HD 10 tablet “is a great alternative to the iPad at half the price.” The third generation Fire HD is faster, charges quickly and has long battery life. The tablet is optimized for Amazon services but also enables access to websites such as Netflix and Spotify on its 1080p screen, and allows for expanded storage. The Fire HD 10 starts at $150, compared to the iPad at $329. CNBC

dis-rup-shun: So, is Amazon trying to be more like Apple, by creating better and better devices, and selling them at break even or less to try to catch Apple, or is Apple trying to become more like Amazon by launching new video, music, gaming and news services? Apple makes fat profits on hardware but has determined that continuous growth will require being good at services. Amazon has built vast empires of services, including shopping, video, books (of course), and delivery, but has determined that owning the device that gets you to the services (Echo, Firestick, Kindle) will result in higher consumption of Amazon services. Two vastly successful companies are accomplishing similar goals by very different paths. At what point do they begin to look similar, and what course does that leave for Google? Google, already dominant in services, looks more like Amazon in its strategy, but got lost on the journey a few years ago when it bit off a bigger Nest than it was ready to chew, but appears to be regaining its vision.

Google and OpenTitan seek to build un-hackable chip through open source

A chip technology called secure enclave seeks to secure a computing device by putting the microprocessor in charge of encryption, and in charge of shutting down the device if any of its operating system has been tampered. Google and a consortium of companies called OpenTitan seek to create a shared secure enclave chip architecture, allowing many contributors to build the chipset, rather than it being property of the usual suspects (Qualcomm, Intel, Nvidia, etc.). Wired

dis-rup-shun: What is Google doing in the microprocessor business and why is it creating an open architecture that potentially disrupts the value of person-decades of knowledge carefully protected by patents? It’s just everyday Art of War strategy in which defeating your enemy is about defeating your enemy’s strategy and re-writing market rules that have traditionally rewarded holders of protected intellectual property. If the strategy sounds familiar, it is how a search engine became the largest player in the smartphone operating system market by making Android an open environment that enlisted armies of developers around the globe from many different companies. If you can’t win at the game, bust up the game board and see who has enough money, developers and marketers to build the new board first.

Congress begins creation of a Federal data privacy law

California federal congresswomen Anna Eshoo and Zoe Lofgren (Dems.) have drafted legislation to protect data privacy rights by forming a new 1,600 employee agency entitled the Digital Privacy Agency (DPA) responsible for policing companies’ use of private information and penalizing scofflaws. The law would also give individuals the ability to see what companies are using their data, for what purposes, and to manage when those rights could be retracted. CNBC

dis-rup-shun: This is real progress, as Europe enacted strong data privacy laws, called GDPR, several years ago while the U.S. has only talked. This will be a test to see if the U.S.’s fractured legislators can agree on a much needed new policy, and for those of us paying taxes, we will appreciate the headcount for the new agency coming from a reduction in some outdated agency, like the Stage Coach Regulation Agency. In debate are states’ rights issues. It will be very difficult for companies to answer to the laws of fifty states, so a single body of legislation, as in Europe, is the better solution. Apple, the company that has chosen to position itself as the privacy company, must now decide to support this initiative or pooh pooh it as inferior to the company’s own internal privacy standards.

IOTc, the Internet of Things Consortium launches summit

The Internet of Things Consortium launches IOTc Next, The Connected Futures Summit. The event takes place in New York City’s TimesCenter on November 12th.

dis-rup-shun: Readers of dis-rup-shun.com are entitled to event discounts. The one day event features a wide variety of IOT topics and speakers. The agenda topics include: financing IOT projects, user interfaces, media organizations in a connected world, marketing how-to’s, seeing the future, IOT and mobility, smart homes, connected health and wellness, securing devices and networks, connected retail, smart cities, and the ethics of IOT. 6 days to register.

It’s now time for you to purchase a robotic vacuum cleaner

iRobot Roomba S9+ is expensive. Its $1,399 but this model is truly smarter than any of its predecessors or competitors. The S9+ uses sensors to create a map of your home, enabling it to do the job more quickly. It includes sensors that enables it to avoid vacuum dangers, like strings, socks, and stairs. And most importantly, it empties itself into a dust bin that requires human attention only after multiple house cleanings. Wired

dis-rup-shun: If you have ever used a Roomba, you know that it is a great vacuum that really works, except for the fact that it randomly bumps its way through the house, doubling back in certain areas and likely never reaching some. Also, the small size of its dirt compartment means it must be changed every 20 minutes or so, especially if you are knee deep in pet hair. The new S9+ proves that rocket science, when applied to household products, really does make every day living better. This is the level of machine intelligence that will make smart home products must haves from here onward.

The streaming wars are over (already)

Streaming wars already over, says Diller

The big studios, AT&T’s Warner, Disney and NBCUniversal are launching Netflix-killer streaming services in the next few months. Netflix enjoys an advantage of 150 million subscribers and 22 years. The upstarts are trying to bring down the streaming giant by pulling their content, programs such as the Office and the Disney catalog, from Netflix. Media magnate Barry Diller says there is no way to catch Netflix.  CNBC

dis-rup-shun: Diller is a smart man, but if Netflix cannot keep producing original content hits and if the studios get on a hot streak of new content, which can be monetized by both streaming subscriptions and network TV (which Netflix cannot access), Netflix could lose its luster. In the Internet economy, the speed of change is faster than most expect, and Netflix has yet to make a profit, claiming that its deficit spending on original content will eventually pay off. It now has big competitors with multiple revenue sources and is locked into a spending battle with media conglomerates.

Why billionaires are launching rockets as fast as possible

Richard Branson’s Virgin Orbit is yet another billionaire’s rocket launch company, using a 747 to ferry rockets into high altitudes. Wired

dis-rup-shun: Branson joins Bezos, Musk, (late) Paul Allen in the battle for space travel. While certainly egos are involved, access to the stars is similar to building the ports for the first steamships to ply oceans and rivers. Two behemoth markets for space craft are telecommunications and defense. Companies that can secure spots in space for communications satellites can cost effectively provide broadband to any corner of the Earth without stringing wires. Companies that can launch defense equipment will have some large paying customers in world governments. Space entrepreneurship puts the U.S. in the lead over China and Russia as those nations’ space deployments are mostly government programs.

Mashup: YouTube on Amazon and Prime Video on Google Chrome

Further blurring the lines between all sources of TV, both streaming and broadcast, Google and Amazon have buried the hatchet and will make their TV sources available on one-another’s hardware platforms. TechCrunch

dis-rup-shun: Another data point confirming that new TV services will soon look like old TV services, one will soon be able to access most streaming services from a single provider as various services essentially become channels within an uber provider, such as AT&T or Comcast or Apple or Amazon. These super-streaming providers will also offer access to cable and broadcast channels and watching TV will be simpler again, and will become more expensive as a few storefronts consolidate the goods.

Europe sends a $350M warning to Facebook, Google and big tech

Europe took the lead on data privacy in 2018 with the implementation of privacy standards known as GDPR. The EU just fined British Airways $230 million and Marriott $123 million for fumbling the security of customer records. Facebook and Google are under investigation by the EU now. CNBC

dis-rup-shun: The EU is showing that, as designed, the government has the teeth to make big corporations respect the laws in place to protect citizens. Hey U.S. Congress, are you watching?

A recipe to reverse tech decline

Make America tech again (MATA)

Here are depressing stats on the U.S.A.; the country ranks 25th in the world in R&D tax credits, is no longer in the top 10 in global innovation, is behind in the race for AI development, is behind in creating scientists and computer scientists, and is ranked #11 in world technology readiness.

Forbes provides specific instructions for government policy to reverse these trends:

  1. Implement a consistent data security and privacy policy similar to Europe’s GDPR standard. This provides a consistent standard for data protection and a guideline for enforcing violators.
  2. Use satellite technology to provide broadband to all citizens, and restore net neutrality.
  3. Increase the R&D tax credit to 25% to keep cutting edge tech development companies from setting up shot elsewhere.
  4. Increase annual STEM (Science, Technology, Engineering, and Math) funding by at least tenfold.
  5. Healthcare must be pushed to adopt a standard for electronic health records (EHR) and must encourage the use of telemedicine and telecare technologies to lower costs and increase care across populations.
  6. Encourage the funding of digital technology to measure and analyze climate change and better quantify changes from year to year.
  7. Make it easy for knowledge workers to obtain H1-B visas (and their spouses).
  8. Increase competition within the Internet economy by shrinking the tech oligarchies.
  9. Spend generously on cyber security, increasing the budget by 25% per year until the problems diminish.
  10. Outline specific and substantial spending initiatives to lead in the development of artificial intelligence. Forbes

dis-rup-shun: Perhaps the U.S. Federal government can accomplish all of these objectives by breaking up the tech oligopolies, but rewarding the new baby techs lucrative contracts to accomplish these tasks, and giving them large tax credits and visa allotments. Break-ups could be bitter sweet launches into new businesses with new partners and plenty of government assistance.

Trouble on the horizon with fake nudes

A new app imagines photos of women with no clothes. The AI-powered app uses its database of images of nude women to find a best replacement for the clothed portions of the image. It only works for pictures of women. The Verge

dis-rup-shun: While this app may be the X-Ray glasses dreamed by many a schoolboy, it will get a lot of people in trouble. Scandal, libel, lawsuits. This may boost the tattoo industry as women feel the need to wear a “unique stamp” to disprove the authenticity of  fake nude photos.

Amazon using smart home as Prime Day feature

Amazon’s annual Prime Day campaign to pry open wallets which are generally funding other activities in July will include a number of smart home products from Nest, Ring, Echo, and others. The products will be offered at steep discounts.

dis-rup-shun: The smart home industry growth is currently attributed to the increasing availability of interesting ‘hero’ products like doorbells, IP cameras, and voice assistants. The big challenge, however, is converting the successful sales of end point products to systems that enable whole home functionality and a robust monthly service fee. A large number of companies including traditional home security players, as well as energy utilities, insurance companies, telcos, and retailers are determined to convert the 80% of the population without home security system, and the path to their wallets appear to be through cool, connected devices.

Consumers demanding technology to change healthcare

Mary Meeker says digitization of care is well underway

Now famous tech trend investor and publisher of annual trends report, Mary Meeker, has stated that the digitization of the health care industry is responding to consumer pressure to be more transparent and convenient. Areas impacted are health care records, health information, scheduling appointments with providers, measuring health with wearables and devices, and telemedicine. ZDNet

dis-rup-shun: The health industry has been slow to embrace technology, primarily as care payers have been unwilling to pay the cost of new technologies. A bonus of the Affordable Care Act has been a restructuring by Centers for Medicare & Medicaid Services (CMS) of what procedures get reimbursed by the U.S. Government. The shift to consumers paying a larger portion of healthcare has resulted in demand for technologies to increase convenience, offer more information, and reduce costs. Healthcare is shifting to a consumer, not industry, driven marketplace and the growing demand makes it great business for technology companies.

Cozy relationship between DOJ and Apple, Google

The DOJ has been reported to be considering anti-trust investigations against Apple and Google, while the FTC may be looking into Amazon and Facebook. Senator Elizabeth Warren, however, has determined and announced that the person at the DOJ in charge of a potential inquiry is Assistant Attorney General Makan Delrahim, a man who was a paid lobbyist for both Google and Apple. The Senator is calling for Delrahim to recuse himself if any inquiry occurs. Gizmodo

dis-rup-shun: Senator Warren is doing her part to drain the swamp and expose the increasingly cozy relationships Silicon Valley has formed with Washington through an army of lobbyists. The GAFAM (or FAANG, if you prefer) big-five are increasingly setting pricing and policies on the Internet, and are counting on their political investments to pay off, but an increasing consumer backlash on privacy and data standards will make for a rougher road.

Amazon ends restaurant delivery businesses

Amazon has announced the end of two U.S. food delivery businesses: Amazon Restaurant and Daily Dish. At the same time, the company has increased its stake in delivery business and former competitor, Deliveroo. Deliveroo, based in the UK, is Uber Eats largest competitor. Engadget

dis-rup-shun: We are not accustomed to hearing about Amazon retreating. Amazon is not afraid to lose money in new ventures, and is generally patient. If the company believed that there is no future in food delivery by car, it would likely not have invested in Deliveroo, unless to keep Uber Eats in check as Amazon’s developing drone fleet will challenge Uber’s fleet at some point in the future. Amazon likely wishes to use its stake in Deliveroo to stay connected to the business until it can provide a more profitable form of food delivery than people in cars.

The European Union implements drone regulations

The EU has drafted specific operating requirements for drones, allowing registered drones to fly across borders. The regulations categorize drones in three classes, based on size, purpose and degree of risk. The regulations are likely to be in effect in one year. TechCrunch

dis-rup-shun: The EU is establishing itself as the efficient and effective regulator of technology. The General Data Protection Regulation (GDPR) data privacy standard, adopted in 2018, changed the way that big data companies operating in Europe store and transmit personal data, including processes and disclosure. Kudos to the EU for taking action and demonstrating leadership in management of personal data, and now drone usage.