Nov
14

Report: 99% of federal security pros want the government to increase data protection

Hello, weekend readers. This is Week-in-Review, where I give a heavy amount of analysis and/or rambling thoughts on one story while scouring the rest of the hundreds of stories that emerged on TechCrunch this week to surface my favorites for your reading pleasure.

Last week, I talked about how Alexa wasn’t forgetting what you requested because that data was more valuable than one might think.

Photo by Justin Sullivan/Getty Images

The big story

In thinking about what to highlight in this week’s newsletter, I was tempted to talk about Zoom and Apple and Superhuman and the idea that secure communications can get screwed up when consent is bypassed, and I’m sure that’s something I’ll dig into down the road, but what intrigued me most this week was a single factoid from Google’s self-driving unit.

Waymo’s CTO told TechCrunch this week that the company has logged 10 billion miles of autonomous driving in simulation. That means that while you might have seen a physical Waymo vehicle driving past you, the real ground work has been laid in digital spaces that are governed by the laws of game engines.

The idea of simulation-training is hardly new; it’s how we’re building plenty of computer vision-navigated machines right now — hell, plenty of self-driving projects have been built leveraging systems like the traffic patterns in games like Grand Theft Auto. These billions of logged miles are just another type of training data, but they’re also a pretty clear presentation of where self-supervised learning systems could theoretically move, creating the boundaries for a model while letting the system adjust its own rules of operation.

“I think what makes it a good simulator, and what makes it powerful is two things,” Waymo’s CTO Dmitri Dolgov told us. “One [is] fidelity. And by fidelity, I mean, not how good it looks. It’s how well it behaves, and how representative it is of what you will encounter in the real world. And then second is scale.”

Robotics and AV efforts are going to rely more and more on learning the rules of how the laws of the universe operate, but those advances are going to be accompanied by other startups’ desires to build more high visual fidelity understanding of the world

There are plenty of pressures to create copies of Earth. Apple is building more detailed maps with sensor-laden vehicles, AR startups are actively 3D-mapping cities using crowd-sourced data and game engine companies like Unity and Epic Games are building engines that replicate nature’s laws in digital spaces.

This is all to say that we’re racing to recreate our spatial world digitally, but we might just be scratching the surface of the relationship between AI and 3D worlds.

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On to the rest of the week’s news.

(Photo: by Chip Somodevilla/Getty Images)

Trends of the week

Here are a few big news items from big companies, with green links to all the sweet, sweet added context.

Trump must unblock his Twitter critics
Twitter is a consumer product, so politicians using it might feel like it’s their own personal account, but when they use it for political announcements it becomes an official communications channel, and using features like blocking stifles national free speech. So says an NY-based appeals court this week of President Trump’s habit of blocking critics. It’s undoubtedly a ruling that’s going to have far-reaching implications for U.S. political figures that use social media. Read more here.Nintendo switches up the Switch
The Nintendo Switch arrived on the scene with the bizarre notoriety of being a handheld system that was also a home console, but it’s not enough for the Japanese game company to capture the hybrid market, it’s looking to revisit the success it had back in the peak Nintendo DS days. The company announced the Switch Lite this week, which strips away a number of features for the sake of making a smaller, simpler version of the Nintendo Switch that is handheld-only and sports a longer battery life. Read more here.Google and Amazon bury the home-streaming hatchet
At long last, one of the stranger passive aggressive fights in the smart home has come to a close. Amazon’s Prime Video is finally available on Google’s Chromecast and YouTube is now on Fire TV after a years-long turf war between the two platforms. Read more here.AT&T maxes out its HBO ambitions
When AT&T bought HBO, via its Time Warner acquisition, execs made clear that they had acquired a premium product and planned to shift its standing in the market. The company announced this week that it will be launching a new service called HBO Max next year that will bring in new content, including “Friends.” Read more here.

GAFA Gaffes

How did the top tech companies screw up this week? This clearly needs its own section, in order of badness:

Apple nips a security nightmare in the bud:
[Apple disables Walkie Talkie app due to vulnerability]Amazon warehouse workers plan strike:
[Amazon warehouse workers in Minnesota plan to strike on Prime Day over labor practices]

Extra Crunch

Our premium subscription service had another great week of deep dives. My colleague Zack Whittaker revisited the WannaCry ransomware that hit in 2017 with a lengthy profile and interviews with the researchers that stopped the malware dead in its tracks. After you dig into that profile, you can check out his Extra Crunch piece that digs further into how security execs and startups can learn from the saga.

What CISOs need to learn from WannaCry

“…There is a good chance that your networks are infected with WannaCry — even if your systems haven’t yet been encrypted. Hankins told TechCrunch that there were 60 million attempted “detonations” of the WannaCry ransomware in June alone. So long as there’s a connection between the infected device and the kill switch domain, affected computers will not be encrypted….”

Here are some of our other top reads this week for premium subscribers. This week, we talked a bit about the future of car ownership and “innovation banking.”

The future of car ownership: cars-as-a-serviceGrasshopper’s Judith Erwin leaps into innovation bankingHow Roblox avoided the gaming graveyard and grew into a $2.5 billion company

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Aug
02

Lilium in talks with Brazilian airline for $1B order

We met with a handful of Brinc’s top startups earlier this week during a visit to the accelerator’s Hong Kong headquarters. The lion’s share of the demos involved hardware products, which has long been the organization’s core offering. Increasingly, however, food-focused startups like Phuture Foods have become an important focus.

Whereas stateside companies like Beyond and Impossible largely work to approximate beef, the Malaysian startup has been pioneering a plant-based pork substitute. The meat is in particularly high demand in the Asian market, where it’s targeting initial sales, beginning with Hong Kong in the next few months and then branching out into Singapore shortly after.

The foodstuff is designed to mimic the taste and texture of pork, using a variety of plants, including wheat, shiitake mushrooms and mung beans. The company has received support from Hong Kong-based angel investors, beginning with online sales, before rolling out to area supermarkets roughly five months from now.

Phuture’s primary value play is sustainability, an increasing important issue, particularly under the strain of population growth in areas like China. Price-wise, it hopes to hit a target of at or lower than that of actual pork products, which could certainly add appeal among consumers for whom ethical and environmental concerns aren’t at top of mind.

The foodstuff is halal, a key feature for markets like Malaysia and Singapore. The company is also exploring kosher certification, along with chicken and lamb substitutes.

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Dec
06

Taiwan-based travel startup AsiaYo raises $7M Series B led by Alibaba Taiwan Entrepreneurs Fund

Silicon Valley has many dreams. One dream — the Hollywood version anyway — is for a down-and-out founder to begin tinkering and coding in their proverbial garage, eventually building a product that is loved by humans the world over and becoming a startup billionaire in the process.

The more prosaic and common version of that Valley dream though is to join an early-stage company right before its growth kicks into high gear. Sure, those early employees might only have a smidgen of equity, but that equity could be worth a whole heck of a lot if they join the right startup.

Every startup has a window of opportunity, a timeframe in which early employees can join while the stock option strike prices are low and the equity grants are high. Join before the big uptick in valuation, and suddenly what might have been an otherwise nice couple of hundred K dollars in the coming years becomes actually, well, in the Bay Area, a reasonably-sized domicile.

Yet, that opportune window seems to be shrinking in size, making it harder for potential startup employees to nail the timing necessary to garner their own best financial return.

For every Roblox, which as we profiled in-depth this week, took almost two decades to reach its current apotheosis, there is a Brex, which seems to reach unicorn status in no time at all. And such stories — while certainly anecdotal — seem to be more commonplace than ever.

Part of the reason for that fast early valuation growth is that Silicon Valley has simply learned how to grow even faster, even earlier. As venture capitalist Reid Hoffman and Chris Yeh discuss in their book Blitzscaling, there are now frameworks and tried-and-true techniques to not just grow a startup, but to grow it at a dizzying rate. Through better marketing channels, growth strategies, and product development, we have indeed made progress at cutting at least some of the time to better valuations.

That rapid transformation from nothing to everything though gives very little time for early employees to discover a startup through the grapevine when the financial conditions are still interesting.

Half a decade ago, I wrote about the plight of early employees in an article I entitled “The Problem with Founders.” I wrote then that:

The secret of Silicon Valley is that the benefits of working at a startup accrues almost entirely to the founders, and that’s why people repeat the advice to just go start a business. There is a reason it is hard to hire in Silicon Valley today, and it isn’t just that there are a lot of startups. It’s because engineers and other creators are realizing that the cards are stacked against them unless they are the ones in charge.

My reasoning then was simple: early employees take on pretty much just as much risk as their founders do, but for a fraction of the equity. Now, with startups jumping to unicorn status in sometimes as short as a handful of months, that risk-reward ratio seems to be even more off-kilter for those early employees.

And it doesn’t just have to be a Brex -scale transformation either. The rapid increase in the size and valuation of series A rounds of financing the past three years means that engineers and salespeople who might have an employee number in the low double digits are suddenly seeing their options struck at a couple of hundred million in valuation. Exits, meanwhile, aren’t suddenly getting richer to compensate.

I started to notice this pattern over the past few weeks in the course of several conversations with software engineering friends of mine who had gotten excited about very early-stage companies — say, just a handful of employees — but who walked away from their offer letters due to already sky-high company valuations.

Now, there is an argument to be made that joining these sorts of companies is precisely where the best opportunities lie. Sure, the valuations are already high, but these are startups with the financial resources and the backing that might allow them to compete effectively. So maybe the equity is smaller and more expensive, but ultimately, if the startup is more likely to be successful, the expected value function might actually be favorable.

Maybe. Yet it is also hard to see how these startups, which despite their rich valuations have barely laid any foundation for success, are a safer bet than a similarly-valued startup with years of experience under its belt and a growth strategy based upon dependable results. Even worse, early employees are perhaps taking even more financial risk, since the preference stack of the venture capital could mean that smaller exits are particularly unfavorable to them.

Plus, the shrinking opportunity window for leading startups means that the difference in financial outcome between two early employees — what could be millions of dollars upon an exit — could have been decided based on who joined the week before the other. That doesn’t seem fair or right, but is increasingly widespread in our industry.

As with most macroeconomic structural changes, there’s not much for anyone to do. Founders aren’t going to take lower valuations or less money just to make the lives of their early employees a bit more rosy, and certainly venture capitalists aren’t going to lowball their offers in a hyper-competitive investment environment. Indeed, the very excitement of a sudden unicorn may be the best attraction for candidates to hear a startup’s pitch and ultimately join.

But when it comes to that Silicon Valley dream of a nice house from a decent return on exit, it’s getting narrower and less widely-distributed. Blitzscaling is making a lot of people a lot of wealth, but early employees? Not so much.

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Jun
22

Extra Crunch roundup: SaaS founder salaries, break-even neobanks, Google Search tips

Eghosa Omoigui: We have four investment thesis that we’ve talked about internally, but this is the first time we’re sharing them outside. One of them is that there is a recognition that in many...

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Original author: Sramana Mitra

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Jul
13

Building Two Open-Source Startups in a Row: Sysdig CEO Loris Degioanni (Part 5) - Sramana Mitra

Loris Degioanni: These dynamics towards micro-services means that these companies can essentially break their software into smaller pieces and then use APIs to talk to each other. This spawned a...

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Original author: Sramana Mitra

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Nov
14

Unity moves robotics design and training to the metaverse

Hello and welcome back to Startups Weekly, a weekend newsletter that dives into the week’s noteworthy startups and venture capital news. Before I jump into today’s topic, let’s catch up a bit. Last week, I noted the big uptick in VC spending in 2019. Before that, I struggled to understand WeWork’s growth trajectory.

Remember, you can send me tips, suggestions and feedback to This email address is being protected from spambots. You need JavaScript enabled to view it. or on Twitter @KateClarkTweets. If you don’t subscribe to Startups Weekly yet, do that here, now, please, thanks.

Anyways, onto today’s topic. Venture capitalist’s favorite company, Zoom, endured its first high-profile scandal this week.

After security researcher Jonathan Leitschuh published a Medium post detailing a major security vulnerability within Zoom’s technology platform, the company patched its Mac video conferencing client to remove a rogue web server that allowed any website to join a video call without permission. Users can now update their client or download the new version from Zoom’s website. Apple has also pushed a silent update for Mac users removing the vulnerable component, a move meant to protect users both past and present from the undocumented web server vulnerability without affecting or hindering the functionality of the Zoom app itself.

Zoom only made the call to remove the insecure web server after intense pushback. I’m not here to share my own opinions on Zoom’s security or lack thereof, what I’d like to point out is the company’s poor reaction to the PR nightmare. Yes, Zoom ultimately provided a fix, but initially, it failed to solve the underlying issue.

Zoom’s major hiccup comes shortly after users and onlookers attacked the exclusive email service Superhuman. Superhuman tracks email you send and receive and gives you tools to help manage it. They do this on your behalf, but without the permission of the recipient of your emails.

Superhuman was much faster than Zoom to offer an official response amid complaints. Just a couple of days after a blog post outlining security flaws within the service went viral, Superman announced it was going to remove location logging altogether, get rid of all existing location data, turn off read receipts by default and make them an opt-in feature for users. This is all nice and good and definitely shifted attention away from the key issue: Pixel-tracking (embedding the commonly used advertising tool of a “pixel” in emails to report back to senders info like whether an email’s been opened or not). Superhuman still has the exact same pixel-tracking capabilities, what’s changed is that users just need to turn on the feature.

It may be recency bias, but I cannot think of a worse response to a security issue than what we've seen with Zoom over the past few days https://t.co/qmTOc5XGr8

— Greg Otto (@gregotto) July 10, 2019

Startups and public companies alike will do what they can to maintain features that benefit their businesses and will go to great lengths to shift consumer attention away from key issues, even when that means putting their own users at risk.

Anyways…

TC Sessions: Mobility

We hosted our first-ever mobility-focused conference this week in San Jose. In what was an incredibly successful, thought-provoking event, industry leaders gathered to discuss the issues plaguing startups, the future of micromobility, the scooter wars and more. A whole lot of mobility news corresponded with the event, including…

The future of car ownership: Cars-as-a-service Zoox’s self-driving car will provide a smooth ride via independent active suspensionWaymo has now driven 10B autonomous miles in simulationUdelv partners with H-E-B on Texas autonomous grocery delivery pilotInside the GM factory where Cruise’s autonomous Bolt is madeInrix expands its digital rule book beyond self-driving cars to help cities with scooters, bikes and delivery botsBird plans to hire 1,000 workers in Paris

Startup Capital

Who raised money this week?

Creditas, a Latin American fintech, landed $231M from SoftBankRemitly secures $220M at unicorn valuationOPay raises $50M to support mobile finance in NigeriaVisa invests $40M in no-password crypto vault AnchorageIndia’s NiYO ‘neo-bank’ raises $35M to help blue-collar workers access financial services Glitch is bringing back remix culture to the web with $30M Series AAnvyl, looking to help D2C brands manage their supply chains, nabs $9.3MDataform scores $2M to build an OS for data warehouses 

New VC funds

Which VCs closed new funds this week?

Maniv Mobility closed its second fund on $100M. Kirsten Korosec has the details.Former Sequoia Capital India partners raise $351M for maiden fund, called A91 Partners. Manish Singh has more.YL Ventures has raised $120M for its fourth cybersecurity-focused fund. Connie Loizos has the full story.And ICYMI, Lance Armstrong wants to raise $75M for his first-ever VC fund. Here’s my story.

Snap’s startups

After generally being the butt of the public market’s jokes since its IPO, Snap is having a killer 2019, with its stock price nearly tripling in value. The successes are perhaps giving the company a moment to pause and think more about generating future value. Part of that equation is certainly the company’s Yellow accelerator that aims to invest in pre-seed startups that bring mobile users to shared experiences. We covered Yellow’s inaugural batch back in September; now TechCrunch’s Lucas Matney has the full rundown on Snap’s second class of bets.

Bumble and Badoo’s bad week

Following an extensive report in Forbes about Bumble’s parent company and its billionaire founder Andrey Andreev, the female-first dating app’s founder Whitney Wolfe Herd issued a statement on Tuesday. While Wolfe Herd says she was “mortified by the allegations” and “saddened and sickened to hear that anyone, of any gender, would ever be made to feel marginalized or mistreated in any capacity at their workplace,” the exec also detailed that “Badoo is currently conducting an investigation into the allegations, as well as compiling documentation to expose the factual inaccuracies that exist within the article.” We’ve got Wolfe Herd and Forbes’ statement in full here, as well as more on Forbes’ explosive investigation.

Extra Crunch

First of all, if you still haven’t signed up for Extra Crunch, I’m not sure what you’re doing. For a low price, you can learn more about the startups and venture capital ecosystem with exclusive deep dives, newsletters, resources and recommendations and fundamental startup how-to guides. Here are some of this week’s top-performing posts.

Grasshopper’s Judith Irwin leaps into innovation bankingWhat CISO’s need to learn from WannaCry

#EquityPod

If you enjoy this newsletter, be sure to check out TechCrunch’s venture-focused podcast, Equity. In this week’s episode, available here, Equity co-host Alex Wilhelm dives deep into this year’s IPOs.

Extra Crunch subscribers can read a transcript of each week’s episode every Saturday. Read last week’s episode here and learn more about Extra Crunch here. Equity drops every Friday at 6:00 am PT, so subscribe to us on Apple PodcastsOvercast, Pocket Casts, Downcast and all the casts.

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Jul
13

Colors: Rice Terraces, Harvest - Sramana Mitra

I’m publishing this series on LinkedIn called Colors to explore a topic that I care deeply about: the Renaissance Mind. I am just as passionate about entrepreneurship, technology, and business, as I...

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Original author: Sramana Mitra

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Nov
03

DALL-E API released by OpenAI in public beta, potential boon for app builders

Apple has a new neighbor in London — and it happens to be one of its biggest competitors.

Microsoft unveiled its first European store on Thursday, which is just meters away from Apple's own London flagship.

We visited the two stores and see how they compare. Here's what we found:

Original author: Mary Hanbury

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Jul
13

I've driven the Ford F-150, the Chevy Silverado, the RAM 1500, and the Toyota Tundra — here are the best features of these full-size pickup trucks (GM, FCAU, F)

In the USA, we sure do love pickup trucks. Especially full-size pickups, which are at the heart of the market.

Since 2014, Ford, Chevy, and RAM — the Big Three of pickup brands — have each redesigned their bread-and-butter (Meat and potatoes?) truck.

I've driven them all, but I've also checked out the Toyota Tundra, a solid pickup that sells outside the top three, and that hasn't been revamped for a while.

These are all pretty good trucks, and for this roundup, I've highlighted some of their best features (by the way, I skipped towing because all four trucks can tow weight that's within the expectations of this class).

Original author: Matthew DeBord

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Jul
12

Why Facebook's stock jumped despite facing a record-breaking $5 billion FTC penalty: 'A slap on the wrist' (FB)

The Federal Trade Commission is gearing up to hit Facebook with a staggering, record-breaking $5 billion penalty.

Wall Street is viewing this as a good thing.

And the reason why speaks volumes about the sheer scale and power of Facebook today.

Some background: For the last year, the FTC has been investigating Facebook's various privacy snafus. The agency started with a probe into whether Cambridge Analytica's misappropriation of 87 million users' data amounted to a breach of the company's 2012 consent decree with it. It later expanded the inquiry to incorporate the California tech giant's myriad other recent privacy scandals.

This process is now drawing to a close. According to multiple reports, the commission has agreed to a settlement that would include a fine of roughly $5 billion.

Read this: The FTC has approved a roughly $5 billion settlement with Facebook

That amount is extraordinarily large. It's an order of magnitude bigger than the previous record penalty imposed by the agency — the $22.5 million fine it levied against Google in 2012. But when the news broke on Friday, Facebook stock actually rose, trading up around 1%.

This is likely because, despite the penalty's unprecedented size, it's still just a drop in the ocean compared to the gigantic amount of cash Facebook regularly produces. The company makes billions of dollars in profit and generates three times the total settlement amount in revenue every three months or so. It also set $3 billion aside in preparation for this back in April 2019, warning investors that it expected a penalty between $3 billion to $5 billion — meaning the cost of the settlement was already baked into the company's share price months ago.

In fact, Wall Street seems to be breathing a sigh of relief, as evidenced by the slight stock uptick, that the penalty wasn't more severe.

We don't yet know exactly what the settlement will look like, and the devil will be the details. Both Facebook and the FTC declined to comment about it when approached by Business Insider.

But it seems unlikely the deal will require the kind of fundamental changes the company's staunchest critics have called for and that could significantly affect its bottom line. To wit, The New York Times reported that "none of the conditions in the settlement will restrict Facebook's ability to collect and share data with third parties."

Accordingly, the settlement has drawn criticism inside and outside the FTC. The Democratic members of the commission reportedly voted against it, pushing for harsher penalties.

Meanwhile, David Cicilline, a Democratic congressperson for Rhode Island, labeled it "a slap on the wrist" and said "the FTC just gave Facebook a Christmas present five months early." Connecticut senator Richard Blumenthal called it a "seemingly inadequate, unconscionably delayed, and historically hollow result" and called for a congressional hearing.

Georgetown Law attorney Lindsey Barrett added: "Anyone saying that a [$5 billion] fine without other meaningful restrictions for a company that made [$22 billion] this year and has repeatedly engaged in illegal conduct at a massive scale is spinning, and spinning for a reason."

Got a tip? Contact this reporter via encrypted messaging app Signal at +1 (650) 636-6268 using a non-work phone, email at This email address is being protected from spambots. You need JavaScript enabled to view it., Telegram or WeChat at robaeprice, or Twitter DM at @robaeprice. (PR pitches by email only, please.) You can also contact Business Insider securely via SecureDrop.

Original author: Rob Price

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Jul
12

Tropical Storm Barry could breach New Orleans' river levees. Here’s how the levee system works and how much it can withstand.

Tropical Storm Barry is getting stronger as it heads for New Orleans, and is likely to become a Category 1 hurricane by the time it makes landfall in Louisiana tomorrow morning, according to the National Hurricane Center.

A hurricane warning is in effect for a swath of the Louisiana coast, and forecasts suggest the Mississippi River could crest as high as 19 or 20 feet— the highest level the river has reached in New Orleans since 1950. (The river has already swelled to 16 feet.)

That could create the biggest test ever of the city's river levees, which were built in 1927.

Louisiana Gov. John Bell Edwards has declared a state of emergency and warned that there could be "a considerable amount of overtopping" of levees in Plaquemines Parish, a suburban district southeast of New Orleans.

Here's everything you need to know about what levees are, how they work, and what the system looks like in New Orleans.

Levee systems rely on embankments, flood-walls, and pumps

Most levees are trapezoid-shaped, elevated embankments that separate bodies of water from inhabited flood plains. They're meant to protect those areas in the event a lake or river level rises.

Roads and railways sometimes cross a levee, so flood-walls — which are usually made of concrete or steel — and other structures are used to close those gaps. Flood-walls are also often built to supplement levee systems in high-density urban areas where there isn't enough space for a large levee.

The US Army Corps of Engineers classifies levees by the environment they protect (urban or rural) and the body of water they protect it from (river, coastal, or estuary).

A view from the top of the levee that protects the Ninth Ward from the Industrial Canal is pictured as Tropical Storm Barry approaches land in New Orleans, Louisiana.Jonathan Bachman/Reuters

Different types of river levees can run parallel the main river channel, encircle a protected area, or provide backup or protection to an existing levee.

New Orleans has two levee systems along the Mississippi River

Two levee systems hold back the Mississippi in New Orleans: the East Bank System and the West Bank System. Together, these systems boast 192 miles of levees and 99 miles of flood-walls.

But it's unclear just how much water the river levees can withstand. The official levee database run by USACE shows levee heights as low as 18 feet above sea level in some parts of the city. That puts it below forecast for peak river heights due to Tropical Storm Barry.

However, the Army Corps has disputed the information in its own database. Ricky Boyett, a Corps spokesperson, told The Times-Picayune and New Orleans Advocate that the group's model still "does not show overtopping of the levees in the 9th Ward."

The Corps even has an internal analysis of the river levees in New Orleans that ranks both the East Bank and West Bank System as at moderate to high risk of a breach.

Levees can fail, and this will be the biggest test yet

If the river water rises higher than the levee it will spill over, but a levee breach is not just a question of height. Levees can also crumble under pressure due to poor maintenance, inadequate foundations, or erosion.

Too much water can seep through a levee and cause it to slough away, or simply seep through the ground below and spout up on the other side in what are known as "sand boils." Animals also burrow below levees sometimes, creating unintentional paths for pent-up water.

Of course, a levee that breaks is far more dangerous than a levee that's too short. In 2005, Hurricane Katrina caused a New Orleans coastal levee to break, releasing a wall of water. The flooding killed over 1,000 people. Since then, Congress has invested $15 billion in repairing the levee system around New Orleans.

The river levees at risk of a breach due to Tropical Storm Barry, however, held during Katrina.

Original author: Morgan McFall-Johnsen

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Jul
12

The FTC's $5 billion fine for Facebook is so meaningless, it will likely leave Zuckerberg wondering what he can't get away with (FB)

Mark Zuckerberg must be feeling a bit like President Donald Trump now.

During the 2016 presidential campaign, a confident Trump famously said that he could shoot someone on Fifth Avenue in New York and "wouldn't lose any voters."

After the news on Friday that the Federal Trade Commission is close to finalizing a settlement with his company for a mere $5 billion, Zuckerberg has got to be feeling similarly untouchable. If, after all the privacy and security fiascos Facebook admitted to over the past two years — including, but not limited to, the Cambridge Analytica scandal — it gets off with such a small penalty, he's got to think he probably could get away with murder.

Read this: The FTC has approved a roughly $5 billion settlement with Facebook

Of course, Zuckerberg's felt he could act with impunity for years. When Harvard students uploaded photos and other personal information to his newly launched Facebook site soon after it launched, he notoriously derided them as "dumb f---s" and offered to share with a friend such details of anyone of interest to the person. He repeatedly pushed privacy boundaries in terms of the data Facebook collected from its users and what it did with that information. When controversies arose about that — as they repeatedly did — the company simply took a step back only to quietly push forward again soon thereafter.

Even a previous FTC investigation proved to be little more than a hiccup. The settlement in that case resulted in no fine. While it was supposed to restrict some of Facebook's activities and protect users' privacy, it turned out to do very little of either. Despite numerous complaints from privacy advocates that the company was violating the terms of the settlement, the FTC didn't take any enforcement actions against the social-networking giant.

This time could have been different

There was reason to think that things would be different this time around. The Cambridge Analytica imbroglio resonated much more widely with the public than the company's previous privacy missteps. That's probably because of the scale of the data leak — up to 87 million users were affected — and because of Cambridge Analytica's ties to Trump's election campaign.

Facebook was already under scrutiny for the hijacking of its service by Russian-linked figures to spread propaganda that benefited Trump's campaign during that election. The Cambridge Analytica leak suggested its service had played another hidden role in Trump's victory, allowing Trump's campaign to exploit the data of Facebook users — collected without their knowledge — to target election ads.

And it turned out that the Cambridge Analytica was only one of numerous privacy and security scandals Facebook faced. The company later acknowledged that malicious actors had separately collected data on "most" of its 2 billion users, that some 14 million users had been affected by a bug that made their supposedly private status updates publicly viewable, that data on some 30 million users was compromised in a hacking attack, and that photos from some 7 million users that were intended to be kept private might have been shared with as many as 1,500 apps.

What's more, the company knew about the problems related to Cambridge Analytica as far back as 2015, according to court filings. And, according to a report in The New York Times, the company gave preferential access to its user data to certain companies even after supposedly curtailing access to it to most companies.

On top of all this, the political environment has changed. Not only are Democrats upset with Facebook, but so too are Republicans. Led by Trump, they've accused the company and other social-networking corporations of censoring conservative voices. And both sides of the political aisle have been calling for an antitrust investigation into Zuckerberg's company and new rules to limit its power.

So, if government regulators were going to get serious about reining in Facebook and holding it accountable, you would think now would be the time.

But you'd be wrong.

To Facebook, this is a slap on the wrist

The FTC settlement, at least as it is described in numerous reports, will amount to little more than a slap on the wrist. Facebook will get to put to bed all of the agency's investigations into its privacy practices. Although it will face some additional oversight over its privacy practices, it won't have any restrictions on its ability to collect or share data with other companies or organizations, according to The New York Times. And it doesn't look like Zuckerberg will be held personally responsible for any of his company's multiple failings or be under any particular scrutiny going forward.

Depending on how that oversight shapes up, the only real cost of the deal for Facebook is likely that it will have to pay that $5 billion fine.

That might sound like a lot — and it is a huge amount to the average person. It also would be the largest fine ever assessed by the FTC, a fact the agency is likely to tout quite a bit when it officially announces the deal.

But to Facebook, $5 billion just isn't that much money. It represents less than 1% of its $580 billion market capitalization. Heck, it's only about 7% of Mark Zuckerberg's net worth.

Put another way, Facebook is such a profitable company that it generates $5 billion in cash — even after accounting for all its day-to-day operating expenses — every 49 days. The company will be able to pay its $5 billion fine and still have money left over to put in the bank at the end of the quarter — that's how meaningless this fine will be to the company.

Wall Street recognizes this. Facebook's stock actually rose on the news of the settlement, even though the fine is now expected to be at the top end of the range the company offered investors in April.

The two Democrats on the commission appeared to recognize that the agency was letting Facebook off easy. They reportedly voted against the deal. It will go forward because the three Republicans on the commission approved it.

They can fool themselves into thinking they've dealt sternly with Facebook, but everyone else knows better. More importantly, Zuckerberg knows better.

If he and Facebook were able to get away with so much with so little consequence this time around, one can only imagine what they'll try to get away the next time. "Dumb f---s," indeed.

Original author: Troy Wolverton

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Nov
17

Stellar Cyber raises $38M to provide 360-degree visibility across attack surface

Daniel Wu Contributor
Dan Wu is a privacy counsel and legal engineer at Immuta. He holds a JD from Harvard University, and is a PhD candidate for Social Policy and Sociology at The Harvard Kennedy School.

Five billion dollars. That’s the apparent size of Facebook’s latest fine for violating data privacy. 

While many believe the sum is simply a slap on the wrist for a behemoth like Facebook, it’s still the largest amount the Federal Trade Commission has ever levied on a technology company. 

Facebook is clearly still reeling from Cambridge Analytica, after which trust in the company dropped 51%, searches for “delete Facebook” reached 5-year highs, and Facebook’s stock dropped 20%.

While incumbents like Facebook are struggling with their data, startups in highly-regulated, “Third Wave” industries can take advantage by using a data strategy one would least expect: ethics. Beyond complying with regulations, startups that embrace ethics look out for their customers’ best interests, cultivate long-term trust — and avoid billion dollar fines. 

To weave ethics into the very fabric of their business strategies and tech systems, startups should adopt “agile” data governance systems. Often combining law and technology, these systems will become a key weapon of data-centric Third Wave startups to beat incumbents in their field. 

Established, highly-regulated incumbents often use slow and unsystematic data compliance workflows, operated manually by armies of lawyers and technology personnel. Agile data governance systems, in contrast, simplify both these workflows and the use of cutting-edge privacy tools, allowing resource-poor startups both to protect their customers better and to improve their services.

In fact, 47% of customers are willing to switch to startups that protect their sensitive data better. Yet 80% of customers highly value more convenience and better service. 

By using agile data governance, startups can balance protection and improvement. Ultimately, they gain a strategic advantage by obtaining more data, cultivating more loyalty, and being more resilient to inevitable data mishaps. 

Agile data governance helps startups obtain more data — and create more value 

With agile data governance, startups can address their critical weakness: data scarcity. Customers share more data with startups that make data collection a feature, not a burdensome part of the user experience. Agile data governance systems simplify compliance with this data practice. 

Take Ally Bank, which the Ponemon Institute rated as one of the most privacy-protecting banks. In 2017, Ally’s deposits base grew 16%, while those of incumbents declined 4%.

One key principle to its ethical data strategy: minimizing data collection and use. Ally’s customers obtain services through a personalized website, rarely filling out long surveys. When data is requested, it’s done in small doses on the site — and always results in immediate value, such as viewing transactions. 

This is on purpose. Ally’s Chief Marketing Officer publicly calls the industry-mantra of “more data” dangerous to brands and consumers alike.

A critical tool to minimize data use is to use advanced data privacy tools like differential privacy. A favorite of organizations like Apple, differential privacy limits your data analysts’ access to summaries of data, such as averages. And by injecting noise into those summaries, differential privacy creates provable guarantees of privacy and prevents scenarios where malicious parties can reverse-engineer sensitive data. But because differential privacy uses summaries, instead of completely masking the data, companies can still draw meaning from it and improve their services. 

With tools like differential privacy, organizations move beyond governance patterns where data analysts either gain unrestricted access to sensitive data (think: Uber’s controversial “god view”) or face multiple barriers to data access. Instead, startups can use differential privacy to share and pool data safely, helping them overcome data scarcity. The most agile data governance systems allow startups to use differential privacy without code and the large engineering teams that only incumbents can afford.

Ultimately, better data means better predictions — and happier customers.

Agile data governance cultivates customer loyalty

According to Deloitte, 80% of consumers are more loyal to companies they believe protect their data. Yet far fewer leaders at established, incumbent companies — the respondents of the same survey — believed this to be true. Customers care more about their data than the leaders at incumbent companies think. 

This knowledge gap is an opportunity for startups. 

Furthermore, big enterprise companies — themselves customers of many startups — say data compliance risks prevent them from working with startups. And rightly so. Over 80% of data incidents are actually caused by errors from insiders, like third party vendors who mishandle sensitive data by sharing it with inappropriate parties. Yet over 68% of companies do not have good systems to prevent these types of errors. In fact, Facebook’s Cambridge Analytica firestorm — and resulting $5 billion fine — was sparked by third party inappropriately sharing personal data with a political consulting firm without user consent. 

As a result, many companies — both startups and incumbents — are holding a ticking time bomb of customer attrition. 

Agile data governance defuses these risks by simplifying the ethical data practices of understanding, controlling, and monitoring data at all times. With such practices, startups can prevent and correct the mishandling of sensitive data quickly.

Cognoa is a good example of a Third Wave healthcare startup adopting these three practices at a rapid pace. First, it understands where all of its sensitive health data lies by connecting all of its databases. Second, Cognoa can control all connected data sources at once from one point by using a single access-and-control layer, as opposed to relying on data silos. When this happens, employees and third parties can only access and share the sensitive data sources they’re supposed to. Finally, data queries are always monitored, allowing Cognoa to produce audit reports frequently and catch problems before they escalate out of control. 

With tools that simplify these three practices, even low-resourced startups can make sure sensitive data is tightly controlled at all times to prevent data incidents. Because key workflows are simplified, these same startups can maintain the speed of their data analytics by sharing data safely with the right parties. With better and safer data sharing across functions, startups can develop the insight necessary to cultivate a loyal fan base for the long-term.

Agile data governance can help startups survive inevitable data incidents

In 2018, Panera mistakenly shared 37 million customer records on its website and took 8 months to respond. Panera’s data incident is a taste of what’s to come: Gartner predicts that 50% of business ethics violations will stem from data incidents like these. In the era of “Big Data,” billion dollar incumbents without agile data governance will likely continue to violate data ethics. 

Given the inevitability of such incidents, startups that adopt agile data governance will likely be the most resilient companies of the future. 

Case in point: Harvard Business Review reports that the stock prices of companies without strong data governance practices drop 150% more than companies that do adopt strong practices. Despite this difference, only 10% of Fortune 500 companies actually employ the data transparency principle identified in the report. Practices include clearly disclosing data practices and giving users control over their privacy settings. 

Sure, data incidents are becoming more common. But that doesn’t mean startups don’t suffer from them. In fact, up to 60% of startups fold after a cyber attack. 

Startups can learn from WebMD, which Deloitte named as one standout in applying data transparency. With a readable privacy policy, customers know how data will be used, helping customers feel comfortable about sharing their data. More informed about the company’s practices, customers are surprised less by incidents. Surprises, BCG found, can reduce consumer spending by one-third. On a self-service platform on WebMD’s site, customers can control their privacy settings and how to share their data, further cultivating trust. 

Self-service tools like WebMD’s are part of agile data governance. These tools allow startups to simplify manual processes, like responding to customer requests to control their data. Instead, startups can focus on safely delivering value to their customers. 

Get ahead of the curve

For so long, the public seemed to care less about their data. 

That’s changing. Senior executives at major companies have been publicly interrogated for not taking data governance seriously. Some, like Facebook and Apple, are even claiming to lead with privacy. Ultimately, data privacy risks significantly rise in Third Wave industries where errors can alter access to key basic needs, such as healthcare, housing, and transportation.

While many incumbents have well-resourced legal and compliance departments, agile data governance goes beyond the “risk mitigation” missions of those functions. Agile governance means that time-consuming and error-prone workflows are streamlined so that companies serve their customers more quickly and safely.

Case in point: even after being advised by an army of lawyers, Zuckerberg’s 30,000-word Senate testimony about Cambridge Analytica included “ethics” only once, and it excluded “data governance” completely.

And even if companies do have legal departments, most don’t make their commitment to governance clear. Less than 15% of consumers say they know which companies protect their data the best. Startups can take advantage of this knowledge gap by adopting agile data governance and educate their customers about how to protect themselves in the risky world of the Third Wave.

Some incumbents may always be safe. But those in highly-regulated Third Wave industries, such as automotive, healthcare, and telecom should be worried; customers trust these incumbents the least. Startups that adopt agile data governance, however, will be trusted the most, and the time to act is now. 

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Jul
12

Some of Amazon's highly paid tech workers say warehouse worker conditions are 'a source of shame' (AMZN)

A group of Amazon's tech workers are openly supporting the planned strike by Amazon warehouse workers in Shakopee, Minnesota, next week during the online retailer's Prime Day shopping event.

Some of them will even be flying out to walk the picket line and give speeches during the strike, Amazon Employees for Climate Justice, the employee activist group organizing this show of support, said.

Others are publicly sharing letters and words of encourage to the strikers via Amazon Employees for Climate Justice, with multiple employees saying they are ashamed of the treatment of the fulfillment center workers.

"The treatment of FC workers is a source of shame to me as an Amazon employee," the Amazon employee Nancy Urban wrote in a blog post shared by the activist group.

"All Amazon employees should be proud to call themselves such. It is shameful that while Amazon chooses to be the industry leader in so many aspects of their employment policies, and yet continues to allow other aspects of their policies to be worthy of being called 'inhumane,'" another anonymous employee wrote in the blog post.

"When I was working as an engineer in Fulfillment, I spent a few days working in the warehouses and could not even come close to meeting the individual productivity quotas. The quotas are unrealistically high for most humans. I support FC employees in Minnesota who wish to lower quotas for safer and more comfortable working conditions," Joey Siracusa wrote in that same post.

Read: Amazon CTO Werner Vogels shared a powerful response to the ongoing protests of the company's involvement with ICE

This show of support for their fellow employees was organized by a group with a primary mission to push Amazon to better combat climate change.

Matt Cardy / Stringer / Getty Images They want Amazon to stop using fossil fuels in its operations entirely and become a zero-emissions company in a timeline dictated by science. Amazon does have numerous green initiatives, such as building its own solar and wind farms. It has also promised to eventually use 100% renewable energy for its global infrastructure, but it has been vague as to the timeline.

Meanwhile, Prime Day, the retailer's annual shopping event, is coming next week. While Amazon customers are anticipating the bargains, these Minnesota workers are using the spotlight to push for better conditions.

They want higher pay, more reasonable workloads, and better opportunities for advancement. Amazon did not immediately return a request for comment to this story, but Amazon has said in reaction to the strike that it already offers the workers what they are asking for with its $15 minimum wage and pay up to $20.80 an hour, plus benefits like healthcare, parental leave, paid education, and training.

In addition, Amazon just this week announced a program to train 100,000 of its employees with new tech skills, including new programs available to warehouse workers who want to learn how to code. It will also be offering more tuition assistance to those who want to train for other high-demand occupations.

Read more: This Amazon exec helped Alexa work with 60,000 devices, but says he only really understood its power when his kid came home from school

But new training options don't combat the perception that the warehouse job involves inhumane expectations.

The company recently endured another round of criticism when John Oliver, the host of the HBO show "Last Week Tonight," showcased the warehouse situation. His segment featured employees talking about how hard Amazon pushes them, their inability to take bathroom breaks, and showed Amazon's anti-union training video.

The Amazon exec Dave Clark, the senior vice president of operations, said Oliver's portrayal of the job is untrue, adding that the company even offers tours of its warehouses. That's true, the tours are limited to specific warehouses, but the Shakopee, Minnesota, facility is among them.

Still, Business Insider previously reported that the company does appear to treat its warehouse workforce like robots. It even uses an automated system that tracks warehouse workers' productivity that can automatically generate the paperwork to fire them for failing to meet expectations.

One anonymous Amazon tech worker said in the blog post: "You guys are the lifeblood of Amazon! Keep raising the bar and insisting on the highest working standards! You have the support of Seattle!"

Original author: Julie Bort

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Jul
12

It won't be hard for Facebook to afford a $5 billion settlement with the FTC, but there may be other costs beyond money (FB)

Facebook is facing a penalty of about $5 billion from the Federal Trade Commission for violating a privacy consent decree set in 2011.

The multibillion-dollar penalty — which was first reported by The Wall Street Journal on Friday — is poised to be the largest of its kind against a tech company, eclipsing a $22 million settlement with Google. For Facebook, though, it looks to be an easy bill to pay, given the roughly $45 billion in cash it has on hand.

For Facebook, $5 billion is about 9% of its total revenue for 2018, which notched in at $55.83 billion. For a more recent figure to put it into context, Facebook generated about $15 billion in revenue in the first three months of 2019, averaging out to about $5 billion a month.

Indeed, earlier this year, Facebook announced that it had already set aside $3 billion to deal with any fine from the FTC, which it had already estimated would be around $5 billion.

The other thing

What could be more of a headache to Facebook than the monetary costs of the settlement is any oversight of its business going forward. The Wall Street Journal reported that terms of the settlement were "expected to include other government restrictions on how Facebook treats user privacy."

However, it's not immediately clear what such restrictions might entail, as The New York Times reported that the settlement didn't place any conditions on Facebook's ability to collect and share data with third parties, though it does have provisions for more "comprehensive oversight" of how the social network handles users' data.

That's likely good news for Facebook's core advertising business. However, that oversight could still introduce more overhead to the company and put a damper on new products and plans — we've already seen skepticism from politicians such as President Donald Trump over Libra, Facebook's new cryptocurrency initiative.

In other words, for a company made famous for moving fast and breaking things, this could force Facebook to slow down a little bit.

Read more: Trump blasts Bitcoin and says cryptocurrencies, including Facebook's Libra, should be 'subject to all banking regulations'

It also remains to be seen whether CEO Mark Zuckerberg will be held personally liable for future infringements on the FTC consent decree, an idea that has been previously floated but is considered unlikely to come to pass.

History lesson

The expected multibillion dollar penalty comes as a result of an FTC investigation into Facebook's Cambridge Analytica affair, in which the personal data for tens of millions of Facebook users was improperly accessed by the data firm.

The main question of the investigation was whether Facebook's handling of user data in the case violated a 2011 agreement with the agency — as part of the terms of a settlement at that time, Facebook agreed to take steps to protect user data.

The $5 billion that goes into settling the inquiry may not have a tremendous influence on the company's bottom line. In fact, Facebook stock closed up 1.8% on Friday and climbed slightly higher in after-hours trading, even in the wake of the report of the settlement.

However, depending on the additional terms of the settlement, this could have ripple effects on Facebook's business going forward. And if nothing else, remember that there's nothing stopping the FTC from opening another investigation, should circumstances warrant it.

Original author: Nick Bastone

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Jul
12

31 useful Amazon Prime benefits to know that go beyond free 2-day shipping — like access to Prime Day deals

Ask anyone around you and they'll most likely say they have an Amazon Prime membership. At less than $10 a month, it offers many convenient benefits, making it a great investment for its price.

A regular Amazon Prime membership is $119 a year. Students not only get 50% off Prime memberships ($6.49/month), but also enjoy exclusive discounts. They can get a free six-month Prime trial here. Meanwhile, Prime is also discounted ($5.99/month) for qualifying customers with an EBT or Medicaid card.

100 million subscribers worldwide evidently think it's worth it, but if you're still on the fence about buying a membership, we've rounded up its many benefits below.

You might even already have Prime but aren't using it to its full advantage, in which case this list will be a nice refresher for all the benefits you should know about.

You can experience all the benefits with a free 30-day trial of Prime to see if it's worth it for you.

Remember, if you want to shop on Amazon Prime Day 2019 on July 15-16, you need to be a Prime member. This year, it will be live for 48 hours, starting at 12 a.m. PT on July 15 and ending at 11:59 p.m. PT on July 16. Find all our Prime Day 2019 coverage here, or head to our master list of the best Prime Day 2019 deals directly.

Get a free 30-day Prime trial

Some standout benefits to an Amazon Prime membership include:

Free two-day shipping Access to Prime Day deals ( July 15-16) Scheduled deliveries

Below are the 31 Amazon Prime benefits you should know about.

Original author: Connie Chen

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Jun
30

Chilling undercover footage taken inside China's most oppressive region shows it's virtually impossible to escape the paranoid police state

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Original author: Business Insider

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Jul
12

Tropical Storm Barry is expected to make landfall tomorrow morning as a hurricane. Here's where the storm's path is heading.

Louisiana residents are preparing for their first hurricane of 2019.

Currently, Tropical Storm Barry is 70 miles from Morgan, Louisiana in the Gulf of Mexico. The National Hurricane Center expects it to make landfall as a Category 1 hurricane around 7 a.m. local time on Saturday.

That's because Barry is gaining strength as it approaches the coast; the storm's maximum sustained wind speeds are hovering around 65 mph, but speeds over 73 mph would upgrade Barry to hurricane status. If that happens as predicted, this would be only the third time in 168 years that a hurricane hits the Gulf region in July.

Read More: Tropical Storm Barry could hit Louisiana as the year's first hurricane tomorrow. New Orleans' river levees will be put to the test.

According to Barry's current course, it could make landfall near Marsh Island, about 100 miles west of New Orleans in Vermilion Bay, Accuweather.com reported.

Tropical Storm Barry is expected to make landfall early Saturday morning on the central Louisiana coast. National Hurricane Center

As of 2 p.m. ET on Friday, a hurricane warning is in effect for the stretch of coast from Grand Isle to Intracoastal City. A storm-surge warning is in effect from Intracoastal City to Shell Beach and Lake Pontchartrain (these areas include New Orleans).

According to the National Hurricane Center (NHC), Barry is expected to weaken back into a tropical storm as it moves over Louisiana on Saturday (with winds between 39 and 73 mph). As the storm continues north through Louisiana on Sunday morning, it will be downgraded further to a tropical depression (which means wind speeds would fall below 39 mph).

The weather pattern is slated to reach Arkansas 24 hours later, then Missouri after that, followed by Indiana.

David Fox makes a call from his business on Poydras Street in New Orleans after flooding in New Orleans, July 10, 2019. Matthew Hinton/AP

Currently New Orleans mayor Latoya Cantrell has advised residents to shelter in place. Cantrell told reporters at a news conference on Thursday that the city only mandates evacuations for major hurricanes — Category 3 or higher — according to Accuweather.com.

So New Orleans and other coastal Louisiana residents are preparing for days of heavy rainfall. The NHC has forecast up to 20 inches of rain across Louisiana over the coming days, which threatens to overflow New Orleans' already-strained Mississippi river levees.

The extreme rainfall, coupled with overflowing rivers and potential storm surges, will threaten urban areas with life-threatening flooding.

Original author: Aylin Woodward

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Nov
16

Todd Howard: Elder Scrolls VI ‘has got to be a decade game’

On Thursday, during what was supposed to be an ordinary keynote address by Amazon CTO Werner Vogels to a crowd of tech workers in New York, protests interrupted.

Protesters repeatedly interrupted the talk, taking issue over the family separation policy at the southern border of the US executed by Immigration and Customs Enforcement (ICE), and Amazon Web Services' dealings with the agency.

On Friday, the fallout continued when Vogels tweeted a powerful response.

"I let trolls be trolls. But to yesterday's group who feel that because of my name I (and thus Amazon) must be the next incarnation of WII Nazi atrocities: I am Dutch. My parents sent to forced labor in Germany and were fortunate to return where many were not. Do your research," he tweeted.

Vogel appears to be commenting on the fact that the Tech Workers Coalition New York, one of the groups responsible for the protest, has been comparing the detention centers on the US southern border, where migrant children taken from their parents are kept by authorities, to Nazi concentration camps.

The Nazis invaded the Netherlands in 1940 and shipped thousands of the country's Jews and political prisoners to forced labor concentration camps. World War II ended in 1945 making Vogels a baby boomer. He was born in 1958, according to Wikipedia.

Read: Microsoft bows to the backlash and will not start charging its sales partners to use its software

Recently, Rep. Alexandria Ocasio-Cortez sparked a fierce public debate over the description of these facilities as "concentration camps," after she used the term to describe the detention centers.

The Tech Coalition New York has been using similar language. On Thursday, during the protests that interupted Vogel's keynote, it tweeted: "Technology will always be used by the powerful to further their own ends. As workers, we must band together and say no - we will not repeat the horrors of the past. We will not build concentration camps. We will not build the deportation machine. We will not separate families."

It also tweeted: "As was pointed out by a speaker in the protests outside, we can't forget that IBM played a crucial role in providing advanced technology to help murder thousands of jews [sic] and others during the Holocaust, and actually profited from the genocide."

The protests were organized by several groups including Jews for Racial and Economic Justice, who demonstrated outside the event. Some of the protesters were shouting out Vogels' name during their disruption, calling on him to stop Amazon's association with ICE. Hundreds of others were outside disrupting traffic.

Read more: Protesters repeatedly disrupted a top Amazon executive's presentation at a tech conference

The protesters take issue with Amazon's association with Palantir, which has acknowledged it works with the Homeland Security Investigations unit of ICE, and which reportedly uses AWS cloud services. Amazon has also met with ICE officials to pitch sales of its facial recognition tech and other AWS services, as revealed by emails between Amazon and various government officials obtained by the American Civil Liberties Union Foundations.

Amazon employees are ramping up their protests internally, too. A group of them have sent a second letter this week demanding the company take a stand against ICE and cease its dealings with Palantir. Employees had sent a similar letter a year ago, specifically demanding that the company stop providing its Rekognition facial recognition software to law enforcement.

Amazon did not immediately respond to a request for comment. However, a spokesperson told the Washington Post that companies and government organizations should use technology "responsibly and lawfully" and said it is working with lawmakers on regulations for AI tech.

Amazon also has not yet posted a replay of the much-interrupted keynote speech online. However some reports said that during the livestream, the video had filtered out the protesters' voices.

Original author: Julie Bort

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Feb
05

New Podcast – Funding Frequency

After some 6,000 people signed an internet petition in a matter of days, angrily demanding that Microsoft not take away a valuable perk — resellers' rights to use Microsoft software — Microsoft has bowed to the pressure and reversed course.

On Friday, the day before its annual partners conference, where thousands of partners will descend on Las Vegas to learn how they can make money by helping the tech giant sell its wares, Microsoft canceled the policy.

The company had been planning on doing away with the perk that was included to those that pay an annual subscription to be part of its official sales channel. As of July 1, 2020, the tech titan was going to stop allowing its partners to use Microsoft software internally to run their own business for free as part of their subscription.

"In announcing these changes it's clear Microsoft is going to war with its partners," the petition reads, in part. The author of the petition calculated that even a small partner with 15 people that uses Microsoft's Dynamics to manage its customer interactions would suddenly be on the hook to pay Microsoft $2,400 a month. Under the old system, these partners got free software as part of their annual subscriptions. Those subscriptions ranged from $475 a year for small partners to $4,730 a year for its gold-level partners.

Microsoft had for decades allowed business partners to use its software internally, and even provided them with technical support, because it made business sense. They wanted partners to know and customize the Microsoft software they sold, just like they would do for Microsoft customers. In the tech world, this is called eating your own dog food.

But in light of the uproar, Gavriella Schuster, Microsoft's corporate vice president of One Commercial Partner, announced in a blog on Friday that Microsoft is simply canceling the policy. Partners will not be required to pay for their software use — nor will they be pushed into obtaining specialized new certifications to help Microsoft sell its cloud.

"We listened to you, and we have acted," she wrote. "Our decision to rescind these changes required a thorough review, and a key determining factor was the connection and trust we have with you, our partners — a valuable asset we do not take for granted."

A cynical analysis of Microsoft's attempt to charge its sales partners would go like this: Microsoft started viewing the tens of thousands of companies that sell its wares as an untapped source of revenue, rather than as an extension of the company.

And Schuster said about as much in an interview with Business Insider.

"We have essentially let them run their environment on Microsoft for free. Now, just like every other customer, they'll have to pay for the services that they use," she told Business Insider's Rosalie Chan.

Read more: Microsoft's reseller chief explains why it's angering some of its partners by taking away a key perk: 'We can't afford to run every single partner's organization for free anymore'

The move was a bit more complicated than that. Microsoft also wants its partners to stop using on-premise software and use its cloud instead, as part of a broader push at the company toward cloud services like Azure or the Office 365 suite.

And Schuster said that if it were to offer free cloud services, the way it offers free software, this creates an ongoing expense for the tech giant because Microsoft has to pay for the servers, storage, and data center.

"We can't afford to run every single partner's organization for free anymore, because it's not free," she said.

Schuster characterized uproar over the new policy like this: "You have to start paying for something we've been giving for free for a long time. It's like when your kids turn 20, and you tell them they have to pay rent."

But given the backlash, which was threatening to overshadow Microsoft's upcoming announcements at its partner conference next week, Microsoft was wise to rethink the policy.

As for how the about-face will influence Microsoft's bottom line, think of this: if Microsoft can afford to offer 5 gigabytes of cloud storage to millions of consumers in the world for free, and 100 gigabytes of storage for just $2 a month, it seems likely that the company won't be bankrupt by continuing a perk as part of their annual reseller subscription, just as it has for decades.

Are you a Microsoft insider with insight to share? We want to hear it. This email address is being protected from spambots. You need JavaScript enabled to view it.. DM on Twitter @Julie188 or contact via Signal.

Original author: Julie Bort

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