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24 Jun 23:00

Bill Gates accidentally makes the case to regulate the hell out of platform companies

by Nilay Patel

There’s a great video of Bill Gates speaking to a venture capital firm called Village Global going around today, in which Gates says that Microsoft losing mobile to Android is his “greatest mistake ever.”

“So the greatest mistake ever is whatever mismanagement I engaged in that caused Microsoft not to be what Android is,” says Gates, adding “Android is the standard non-Apple phone platform. That was a natural thing for Microsoft to win.”

This is all true, and you can read a bit more about the circumstances of how Microsoft missed the mobile moment here. But I want to focus on what Gates said next, because it is incredibly relevant to the current conversation about platforms, regulation, and antitrust. Here it is, with my emphasis in...

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24 Jun 17:08

Gartner finds RPA is fastest growing market in enterprise software

by Ron Miller

If you asked the average person on the street what Robotic Process Automation is, most probably wouldn’t have a clue. Yet new data from Gartner finds the RPA market grew over 63% last year, making it the fastest growing enterprise software category. It is worth noting, however, that the overall market value of $846.2 million remains rather modest compared to other multi-billion dollar enterprise software categories.

RPA helps companies automate a set of highly manual processes.The beauty of RPA, and why companies like it so much, is that it enables customers to bring a level of automation to legacy processes without having to rip and replace the legacy systems.

As Gartner points out, this plays well in companies with large amounts of legacy infrastructure like banks, insurance companies, telcos and utilities.”The ability to integrate legacy systems is the key driver for RPA projects. By using this technology, organizations can quickly accelerate their digital transformation initiatives, while unlocking the value associated with past technology investments,” Fabrizio Biscotti, research vice president at Gartner said in a statement.

The biggest winner in this rapidly growing market is UIPath, the startup that raised $568 million on a fat $7 billion valuation last year. One reason it’s attracted so much attention is its incredible growth trajectory. Consider that UIPath brought in $15.7 million in revenue in 2017 and increased that by a whopping 629.5% to $114.8 million last year. That kind of growth tends to get you noticed. It was good for 13.6% marketshare and first place, all the way up from fifth place in 2017, according to Gartner.

Another startup nearly as hot as UIPath is Automation Anywhere, which grabbed $300M from SoftBank at a $2.6B valuation last year. The two companies have raised a gaudy $1.5 billion between them with UIPath bringing in an even $1 billion and Automation Anywhere getting $550 million, according to Crunchbase.

Chart: Gartner

Chart: Gartner

Automation Anywhere revenue grew from $74 million to $108.4 million, a growth clip of 46.5%, good for second place and 12.8 percent marketshare. Automation Anywhere was supplanted in first place by UIPath this year.

Blue Prism, which went public in 2016, issued $130 million in stock last year to raise some more funds, probably to help keep up with UIPath and Automation Anywhere. Whatever the reason, it more than doubled its revenue from $34.6 million to $71 million, a healthy growth rate of 105 percent, good for third place with 8.4 percent marketshare.

For now, everyone it seems is winning as the market grows in leaps and bounds. In fact, the growth numbers down the line are impressive with NTT-ATT growing 456% and Kofax growing 256% year over year as two prime examples, but even with those growth numbers, the marketshare begins to fragment into much smaller bites.

While the market is still very much in a development phase, which could account for this level of growth and jockeying for market position, at some point that fragmentation at the bottom of the market might lead to consolidation as companies try to buy additional marketshare.

23 Jun 04:36

Slack has made chat hot. But here's why Google's Gmail product boss says chat is going to be swallowed up by email. (GOOG, GOOGL, WORK)

by Nick Bastone

Jacob Bank

    • With Slack going public this week, Business Insider recently sat down with Jacob Bank, Gmail's director of product management, to learn more about Google's enterprise chat strategy. 
    • Bank said an important update will come later this summer when its team chat product, Hangouts Chat, moves into Gmail. 
    • "There's the classic user that likes to keep email and chat separately," Bank said. "But according to our research, the vast majority are just frustrated by having to constantly keep tabs on two separate places." 
    • Google will also try and help users manage their chat and email in a unified way, as well as cut down on interruptions by prompting them to use certain channels at certain times. 
    • Click here for more BI Prime stories.

Slack has completely changed the way millions of people communicate at work. Long, formal emails are out; casual, rapid-fire chats are in.      

But even as Slack's messaging platform spreads to more offices and its now publicly-traded stock wins the hearts of investors, the time-tested email is unlikely to disappear. Think about an important note to a manager or a marketing outreach to a potential customer — email is still probably the best means to communicate in certain situations. 

That's giving hope to companies like Google and Microsoft, who are betting their email products can not only co-exist with chat, but that email can make chat better.

"There's the classic user that likes to keep email and chat separately," Jacob Bank, Gmail's director of product management, told Business Insider in a recent interview. "But according to our research, the vast majority are just frustrated by having to constantly keep tabs on two separate places." 

At this year's Cloud Next conference, Google announced it would be moving its Hangouts Chat for team collaboration (a messaging app similar to Slack) directly into its email service, Gmail. Emails would not be converted into chat messages (the two would be clearly distinctly marked as such), but Hangouts Chat would now live on a sidebar within Gmail itself. 

Read more: Inside Slack's direct listing: Here's what actually went down between the tech company and its Wall Street advisers

Bank also said one of the biggest challenges for a company to adopt a new product — like a chat service— is getting everyone on board. If some people use it, but others don't, communication can break down. But because people already use Gmail daily, Bank thinks adopting Hangouts Chat into daily workflows will be a more seamless experience for users. 

"When teams are adopting a new chat product, for it to really work, everyone's gotta go all in," Bank said. "The advantage of bringing team messaging to Gmail is that it's a tool everyone already uses, so you don't have this 'one person left behind' problem."

Hangouts Chat

The Google product update that moves Hangouts Chat to Gmail has so far been rolled out only to a limited number of beta users, with plans for a formal launch to its more than 5 million enterprise customers later this summer.  

But if Microsoft's group chat product — known as Microsoft Teams — is any indication, the future may be bright for Google. As of this March, 500,000 companies were using Microsoft Teams with 150 of those customers having more than 10,000 users. Slack does not release the number of organizations using its product, but said in January that it had over 10 million paying users. 

The possible future for Hangouts Chat

Beyond the convenience factor of having a chat service within Gmail, Google thinks it has some other advantages as well. For one, Bank said his team is working on a way for users to better manage the barrage of chats and emails they receive. 

Over the years, Gmail has created multiple ways for recipients to make sure they're not "dropping the ball" on incoming emails by offering features like labeling, read receipts, and automated nudges. Today, Bank says chat has "none or very little" of those features, but he wants that to change. Bank envisions a world where marking an email and a chat as "unread," for instance, will function in similar ways. 

"Notifications can be handled in a unified way. Triage actions like, 'I want to star this or mark this as unread or snooze this,' can be handled in a unified way. Search can be handled in a unified way," Bank said. "The idea is that your inbox that we've built — all these tools to help you get back to things — can help you across channels."

With a research background in time management and also having started a company focused on the topic, Bank is especially interested in how communication tools can become less distracting.

In future iterations of Gmail and Hangouts Chat, Bank hopes to offer users insights into which channel — email or chat — should be used given the recipient and the time. If you're trying to send a chat message to someone across the world, for example, and it's late there, Bank thinks users should be prompted to send an email instead (since email is asynchronous and the expectation isn't that you'll respond right away, which is often the case with chat). 

"This is a really important product principle for us. We want to give humans the information they need to make the right choice," Bank said. "Most of the interrupting people do is not out of malice. It's just out of a lack of information, a lack of tooling, and a lack of contextual intelligence within the tools." 

Bank said his team will also bring in information from a users' Google Calendar to let people know if they're busy or not. 

Too big to fail? 

When Google launched its Hangout Chat product in 2017 it had the luxury of rolling it out to an existing base of 3 million businesses. By the end of 2018, G Suite had over 5 million corporate customers. 

And to further spread its chat service, Google announced at Cloud Next in March that it will release a feature known as "Guest Access," which allows users in one company to chat with those in another organization on Hangouts Chat. Guest Access also allows Hangouts Chat users to talk with people using their personal Gmail accounts. Currently, there are 1.5 billion Gmail users worldwide. 

Google's aggressive campaign to capture more of the chat market, and the advantages it has through integration with its existing products and customers, could present a threat to Slack's fast-growing chat business.  But Google's chat ambitions are also playing out against a backdrop of political backlash towards tech giants and the potential of antitrust investigations to determine if companies like Google are too big and powerful. 

So far, the antitrust conversation has revolved primarily around online advertising and e-commerce. But the battle for the emerging chat market could provide fresh ammunition to Google's critics. 

When asked if he was concerned about the timing of Google's push into the enterprise chat market, Bank said: "We have a bunch of users in Gmail who are trying to communicate and collaborate with their teams and it would be crazy for us to try and not create a better experience for them. Our Gmail users tell us they want help getting their work done and we want to help them." 

Google CEO Sundar Pichai, meanwhile, is even wishing Slack "continued success." 

 

SEE ALSO: Meet the 14 top executives who lead Alphabet's 'Other Bets,' helping the company go beyond just Google

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NOW WATCH: Facebook's scandals weren't enough for people to stop using it. Here's how the company has held up through data hacks, lawsuits, and massive security threats.

22 Jun 01:44

Bitcoin is surging and just crossed the $10,000 mark

by Theron Mohamed

traders celebrate

  • Bitcoin surged past $10,000 on Friday evening.
  • The milestone marks bitcoin's recovery to more than half of its all-time high.
  • The promise of interest-rate cuts, rising US-Iran tensions, the US-China trade war, and wider interest in cryptocurrencies could be driving the surge.
  • Watch bitcoin trade live.

Bitcoin surged more than 5% on Friday night to pass $10,00o, marking its recovery to about half of its record high.

Naeem Aslam, the chief market analyst at ThinkMarkets UK, wasn't far off the mark when he predicted last month that the cryptocurrency would reach the milestone in early June. At the time, he said it would be "a real embarrassing moment for those who said that the currency will never recover from its losses."

Bitcoin surged to nearly $20,000 in December 2017 but tumbled below $7,000 in less than two months. It dropped as low as $3,250 last December, but has more than tripled in value since then.

"Once this market builds up a head of steam, it's hard to stop," said Neil Wilson, the chief market analyst for Markets.com, in late May. "This is a big momentum play and the more buzz, the more traders will pile in behind the rising wave."

Wilson didn't expect the recovery to last, but he cautioned against betting on a bitcoin slump.

"Standing in front of a steamroller springs to mind, if you are a natural bear," he added. "Better to wait and let it fizzle out, which it will eventually."

While there isn't a clear catalyst for the price spike, there are several theories. Investors may be fleeing to bitcoin as a safe haven amid rising tensions between the US and Iran and an enduring US-China trade war. The Federal Reserve's signaling this week that it could cut interest rates as soon as next month, days after the European Central Bank pledged to use rate cuts and asset purchases to support the eurozone's economic growth, have also raised the prospect of cheaper borrowing and greater liquidity in world markets. Those factors have lifted oil and gold prices this week, and bitcoin could be a similar story.

However, bitcoin may have limited value as a safe haven. Research suggests the cryptocurrency is vulnerable to short-term interest rates, expectations of stock-market and foreign-exchange volatility, and other factors that move the prices of mainstream investments. 

Another driver could be growing mainstream interest. Fidelity and other brokerages are poised to allow buying and selling of cryptocurrencies on their platforms, while Facebook has recruited blue-chip partners such as Visa, PayPal, Uber, and Spotify to launch its own digital coin.

The bitcoin rally may come as a surprise, however, given the raft of cryptocurrency scandals in recent months. New York Attorney General Letitia James filed a lawsuit accusing the owner of the Bitfinex exchange of "ongoing fraud" and draining at least $700 million from the reserves backing its digital coin, Tether, to cover up $850 million in missing funds. Binance, one of the world's largest cryptocurrency exchanges, announced that hackers stole $40 million worth of bitcoin.

Bitcoin is up more than 160% this year at about $10,150 a coin.

Bitcoin_10000

 

SEE ALSO: Here are 5 theories for the Bitcoin price spike

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NOW WATCH: New York City is getting even more infested with rats. Here's why cities can't get rid of them.

21 Jun 17:02

Google was never really serious about tablets

by Dieter Bohn

Years of reboots, both literal and metaphorical

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20 Jun 23:46

Everything you need to know about Libra, Facebook’s ambitious cryptocurrency

by Jacob Kastrenakes

Facebook is planning to launch a cryptocurrency it hopes will “transform the global economy.” The currency, named Libra, is being developed by Facebook, but the company intends to share control with a consortium of organizations, including venture capital firms, credit card companies, and other tech giants.

At launch, you’ll be able to send Libra inside of Facebook Messenger and WhatsApp, with it mostly being meant as an intermediary for transferring traditional currencies. Eventually, Facebook hopes Libra will be accepted as a form of payment, and other financial services will be built on top of its blockchain-based network.

Facebook is also launching a subsidiary company, Calibra, which will develop products and services based around...

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20 Jun 20:04

Google says it’s done making tablets and cancels two unreleased products

by Chris Welch

Google will not be launching a sequel to last year’s Pixel Slate tablet, according to Business Insider and Computer World, and will instead focus its Chrome OS hardware efforts on traditional laptop devices like the Pixelbook. “For Google’s first-party hardware efforts, we’ll be focusing on Chrome OS laptops and will continue to support Pixel Slate,” a spokesperson told Business Insider.

Translation: you can expect the Slate to continue to receive software and security updates for several years to come — but there won’t be a Pixel Slate 2. Rick Osterloh, who leads Google’s hardware business, confirmed as much on Twitter on Thursday afternoon.

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20 Jun 18:39

Facebook’s Calibra logo looks very familiar

by Jon Porter

Plenty of people aren’t happy about the idea of Facebook getting into financial services, but startup bank Current has a slightly different gripe — the logo used by Facebook’s Calibra subsidiary, consisting of a simple tilde mark within a circle, bears a remarkable similarity to its own. The bank has posted a comparison of the two logos with the message, “This is what happens when you only have 1 crayon left.”

Current is a startup bank that first launched in 2017 with an app-controlled debit card designed for kids, and at the end of last year it launched a regular checking account. As well as being able to manage your account using an app, Current also advertises that it can be used as a way for users to pay their friends, not unlike the...

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20 Jun 18:37

Slack opens at $38.50, a pop of 48% on its first day of trading on NYSE as WORK

by Ingrid Lunden

Slack, the workplace messaging platform that has helped define a key category of enterprise IT, made its debut as a public company today with a pop. Trading as “WORK” on the New York Stock Exchange, it opened at $38.50 after setting a reference price last night of $26, valuing it at $15.7 billion, and then setting a bid/asking price of $37 this morning.

The trading climbed up quickly in its opening minutes and went as high as $42 but in the end closed only a little higher than its opening price, at $38.62. Slack’s market cap is now around $20 billion.

Note: There was no “money raised” with this IPO ahead of today because Slack’s move into being a publicly traded company is coming by way of a direct listing — meaning the shares went directly on the market with no pre-sale. This is a less-conventional route that doesn’t involve bankers underwriting the listing (nor all the costs that come along with the roadshow and the rest). It also means Slack does not raise a large sum ahead of public trading. But it does let existing shareholders trade shares without dilution and is an efficient way of going public if you’re not in need of an immediate, large cash injection. It’s a route that Spotify also took when it went public last year, and, from the front-page article on NYSE.com, it seems that there might be growing interest in this process — or at least, that the NYSE would like to promote it as an option.

Slack’s decision to go slightly off-script is in keeping with some of the ethos that it has cultivated over the last several years as one of the undisputed juggernauts of the tech world. Its rocket ship has been a product that has touched on not one but three different hot growth areas: enterprise software-as-a-service, messaging apps and platform plays that, by way of APIs, can become the touchstone and nerve center for a seemingly limitless number of other services.

What’s interesting about Slack is that — contrary to how some might think of tech — the journey here didn’t start as rocket science.

Slack was nearly an accidental creation, a byproduct that came out of how a previous business, Tiny Speck, was able to keep its geographically spread-out team communicating while building its product, the game Glitch. Glitch and Tiny Speck failed to gain traction, so after they got shut down, the ever-resourceful co-founder Stewart Butterfield did what many founders who still have some money in the bank and fire in their bellies do: a pivot. He took the basic channel they were using and built it (with some help) into the earliest public version of what came to be known as Slack.

But from that unlikely start something almost surprising happened: the right mix of ease of use, efficient responsiveness and functionality — in aid of those already important areas of workplace communication, messaging and app integration — made Slack into a huge hit. Quickly, Slack became the fastest-growing piece of enterprise software ever in terms of adding users, with a rapid succession of funding rounds (raising over $1.2 billion in total), valuation hikes and multiple product improvements along the way to help it grow.

Today, like many a software-as-a-service business that is less than 10 years old and investing returns to keep up with its fast-growing business, Slack is not profitable.

In the fiscal year that ended January 31, 2019, it reported revenues in its S-1 of $400.6 million, but with a net loss of $138.9 million. That was a slight improvement on its net loss from the previous fiscal year of $140.1 million, with a big jump on revenue, which was $220.5 million.

But its growth and the buzz it has amassed has given it a big push. As of January 31, it clocked up over 10 million daily active users across 600,000 organizations, with 88,000 of them on paid plans and 550,000 using the free version of the app. It will be interesting to see how and if that goodwill and excitement outweighs some of those financial bum notes.

Or, in some cases, possibly other bum notes. The company has made “Work” not just its ticker but its mantra. Its slogan is “Where work happens” and it focuses on how its platform helps make people more productive. But as you might expect, not everyone feels that way about it, with the endless streams of notifications, the slightly clumsy way of handling threaded conversations and certain other distracting features raising the ire of some people. (Google “Slack is a distraction” and you can see some examples of those dissenting opinions.)

Slack has had its suitors over the years, unsurprisingly, and at least one of them has in the interim made a product to compete with it. Teams, from Microsoft, is one of the many rival platforms on the market looking to capitalise on the surge of interest for chat and collaboration platforms that Slack has helped usher in. Other competitors include Workplace from Facebook, Mattermost and Flock, along with Threads and more.

For more on Slack’s first day, see Kate’s story here.

20 Jun 18:37

Slack stock is surging more than 50% on its first day trading in an unusual 'direct listing' (WORK)

by Alexei Oreskovic

Stewart Butterfield

 

Shares of Slack shot up more than 50% within moments of beginning trading on the public markets Thursday.

The workplace chap app listed shares via an unusual direct listing on Thursday, with existing shareholders bypassing the traditional IPO process and underwriters, to sell shares directly to the public. Slack's stock was set to begin trading at a reference price of $26 a share, but quickly surged to $41,90. 

This story is developing...

 

 

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NOW WATCH: Here are the best updates coming to your iPhone this fall

19 Jun 17:26

The Trump Administration Just Rolled Back Obama's Historic Climate Change Plan

by Sarah Emerson

The Trump administration scrapped a landmark climate change rule on Wednesday that was designed to lessen America’s dependence on coal-fired power plants.

The Clean Power Plan was one of President Obama’s most iconic environmental efforts, and has been derided by Republicans since its inception.

“Americans want reliable energy that they can afford,” Environmental Protection Agency (EPA) chief Andrew Wheeler said at a press conference on Wednesday, adding that “fossil fuels will continue to be an important part of the mix.”

Wheeler, once a lobbyist for the country’s largest coal mining company, replaced the Obama-era rule with one that encourages the revamping of aging, polluting power plants. Under the Clean Power Plan, these facilities would be phased out.

Environmental groups and Democrats have predictably denounced the new rule, saying that by extending the lifetimes of coal-fired power plants, clean energy will continue to be cannibalized.

The plan also prevents the federal government from setting broad emissions limits. Now, the EPA can only regulate “inside the fence line of” plants on a piecemeal basis, reported the Wall Street Journal.

“As rising temperatures, surging seas and record-breaking natural disasters ravage communities everywhere, the Trump Administration continues to ignore science and put the interests of polluters ahead of the American people, by rolling back countless life-saving environmental protections,” House Speaker Nancy Pelosi said in a statement.

The Environmental Defense Fund, a climate change-focused nonprofit, called it “a do-nothing replacement that includes no real limits on climate pollution, and could actually lead to increased health-harming pollution in many parts of the country.”

The Clean Power Plan has been a target of the Trump administration from the start. In 2017, former EPA administrator Scott Pruitt announced that he had “set in motion an assessment of the previous administration’s questionable legal basis in our proposed repeal of [the plan].”

During a public comment period held by the EPA in 2017, Americans strongly voiced their opposition to the rule.

The Wall Street Journal noted that environmental groups will likely attempt to restore the Clean Power Plan, which was legally challenged by 28 states and the fossil fuel industry, and remained stuck in the Supreme Court.

The new rule is slated to take effect within 30 days.

19 Jun 14:34

Google is bypassing carriers in its RCS messaging rollout (GOOGL)

by Peter Newman

Google has been working for years to fully roll out the Rich Communication Services (RCS) messaging standard to devices across its far-flung Android ecosystem, but its efforts have been stymied by telecom politics and reluctance toward change that has left the messaging ecosystem fragmented.

Annual Mobile OTT Messages Sent

To bypass this reluctance and roll out RCS to consumers' phones faster, Google is allowing users to opt in to RCS rather than waiting for network operators to support it first, according to The Verge.

Here's what Google's doingInstead of working with carriers as they roll out network-wide support for RCS, Google is implementing a peer-to-peer (P2P) RCS model to allow consumers to use RCS with others who've also opted in to the new service.

RCS is a replacement for standard SMS and MMS messaging formats that enables users and businesses to send more content types in interactive formats. Starting in France and the UK, Android users will be able to opt in to "RCS Chat" via a prompt in the Android Messages app — the current default app for SMS messaging in the default version of the Android operating system. 

When a user is messaging with someone, Messages will check whether both parties have enabled RCS. If they have, it will display a message that RCS Chat is available. Once they opt in, the users will be able to take advantage of the fuller features of the service, compared to the more limited messaging available through SMS or MMS. Users can opt in regardless of whether their wireless network operator has implemented RCS.

One shortcoming of the RCS standard is that it does not support end-to-end encryption. That means any security worries in consumers' minds won't be remedied by the shift to RCS. Google's RCS Chat will thus be at a disadvantage to competing chat apps that boast such encryption, including iMessage, WhatsApp, and soon Facebook Messenger.

The bigger picture: Moving toward RCS and away from SMS and MMS before carriers are fully prepared to offer their own support for the rich messaging standard could help Google take advantage of the growing market for business-to-consumer (B2C) messaging.

By enabling support for RCS without involving wireless operators, Google can serve as the chief point of contact for companies looking to reach their customers through RCS messaging. For the search giant, the B2C market "is an area where there is an opportunity to provide a better experience" according to Sanaz Ahari, a Google product management director overseeing Android Messages. He continued to say that "given that [SMS] is monetized today, we know that as long as [RCS chat] creates value for businesses, then there is value to be created."

Businesses are expected to nearly sextuple how many mobile messages annually they send to consumers over the next five years, rising from around 4 billion in 2019 to around 23 billion by 2024, according to Business Insider Intelligence estimates.

If Google is able to establish relationships with companies looking to serve messages to Android users, they could capture part of a valuable revenue stream from telecoms, which could be difficult for network operators to regain even after they roll out full RCS support.

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19 Jun 14:33

Slack's direct listing casts a little-known part of Wall Street that relies on humans into the spotlight. Here's how it'll work.

by Dan DeFrancesco

nyse traders uber ipo

  • Slack's direct listing on Thursday will be the second one conducted at the New York Stock Exchange where human traders on the floor, known as designated market makers, play an important role in the process.
  • Citadel Securities, which served as Spotify's DMM for its direct listing in 2018, will use its team of human traders to discover the appropriate opening price for Slack's stock. 
  • During a direct listing no new shares of the company are issued and there are no bank underwriters, meaning there's less information regarding what price the stock should open at and greater risk of wild price swings once it is public. 
  • Click here for more BI Prime stories.

Citadel Securities is one of the most tech-savvy firms on Wall Street, but on Thursday it's the firm's humans who will take center stage. 

As one of the largest market makers in the world, Citadel Securities is an expert in cutting-edge technology. However, its designated market maker (DMM) business, the human traders that handle companies listed on the New York Stock Exchange, is what will be in the spotlight when Slack hits the public market via a direct listing Thursday. 

DMMs, of which there are only a handful, play an important role during traditional initial public offerings, as they work with the bankers involved in the listing to set the opening price and ensure the stock trades smoothly once live. 

The role of a DMM, however, is magnified during a direct listing, in which new shares of the stock are not issued and less information is made available to help them discover the appropriate price to open at.

"You don't necessarily know the number of shares coming to market and you don't really have an exact sense of the price that investors are looking to pay for the shares," Joe Mecane, head of execution services at Citadel Securities, told Business Insider. "That puts additional focus on opening up the stock."

Read more: Slack just hinted at how many shares could be for sake in its direct listing next week

With a traditional IPO, bankers involved in the process gauge investor interest in the new shares leading up to the public float and a price is set based on market demand.  

DMM's don't have the same luxury during direct listings, instead relying on a reference price established by NYSE beforehand, which is typically based off of how the company has traded in the private market. Even so, the transactions in the private market don't always give an indication of the public's appetite for a stock.

Spotify, the first company to conduct at direct listing at NYSE, had a reference price of $132. The following day, Citadel Securities opened shares for the stock at $165.90 before eventually settling at $149.01 by the end of the trading session. 

"Ultimately where the stock is going to open is purely a function of supply and demand," Mecane said. "The reference price may help inform it and it is certainly a starting point that some investors use as a valuation metric, but how much it relates to the actual opening price is to be determined."

To be clear, DMMs aren't a requirement of direct listings. Nasdaq, which does not have DMMs, has performed several direct listings for companies since 2014. 

The difference, however, is the size of the companies that have gone to market at each exchange. Nasdaq's direct listings were with much smaller companies. Still, in February Nasdaq filed a rule change with the Securities and Exchange Commission to both clarify its requirements for direct listing and to remind the Street it was a viable option for companies looking to take the route. 

Mecane maintains for large companies that want to direct list, DMMs plays a key role. 

"You want someone who is responsible for getting your stock to open and trade smoothly with limited volatility," Mecane said. "The DMM model essentially creates that obligation and responsibility. I think direct listings are a natural fit for the DMM model."

See more: Citadel Securities, a massive Wall Street trader, has made an unusual bet on humans, and it could help the firm tap into an $800 billion market

For all the legwork required of a DMM, the fees collected aren't particularly large. However, serving as one does provide an inside track to corporations requiring other services, such as interest rate swaps for hedging or treasuries for cash management. 

They can also get involved in company buybacks in which corporates purchase their own shares. DMMs stand to potentially help their clients with the process, getting a cut of an $800 billion business. 

And while humans are more involved in direct listing than traditional IPOs, that's not to say technology plays no part in the process. While setting the price is  labor intensive, ensuring the stock remains stable once its opened is a job largely for Citadel Securities' technology. 

"We are responsible for dampening volatility in the stock, filling in the gaps with our own liquidity and generally supplying liquidity to the marketplace," Mecane said. "Some of this is done manually by traders who are physically on the floor but a lot is done through our automated upstairs technology."

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19 Jun 03:09

Cisco CEO says he's forbidden his salespeople from using Huawei's problems to win business (CSCO)

by Julie Bort

Cisco CEO Chuck Robbins

  • If there's one company that should be smiling with delight over Huawei's US ban, it's Cisco.
  • Cisco has been calling out its arch rival, Huawei, for years. Cisco's finger pointing was one reason why Congress investigated and warned US companies not to buy Huawei's telecom equipment back in 2012.
  • But CEO Chuck Robbins told reporters that he's forbidden his salespeople from using Huawei's political problems in their sales pitches.
  • Click here for more BI Prime stories. 

During a press conference at Cisco's annual tech conference Cisco Live last week, CEO Chuck Robbins was asked to weigh in on Huawei's problems.

He was also asked if the escalation of trade wars, and possible retaliation by Chinese government, could impact Cisco.

Robbins, ever cool and calm, answered with an almost philosophical view.

First of all, he pointed out that any ban on doing business with Huawei by US companies doesn't impact Cisco at all. "I don't do business with Huawei. They are my biggest competitor on a global basis."

Read: CERN, the famous scientific lab where the web was created, is so unhappy with Microsoft's 10x price hikes that it's ditching all Microsoft software

But he also said that he's instructed Cisco's sales teams to "take the high road. ... I've told our teams point blank: 'This is not a sales strategy for you.' I do not want our teams going in and leveraging the geopolitical situation to try to advantage us.'"

That's a pretty eye-opening point of view because Huawei's problems should be music to Cisco's ears.

Cisco has been quite openly complaining about Huawei since way back in 2011. In fact, Cisco's former CEO, John Chambers, was among the first to publicly sound the alarm on Huawei's tactics, accusing the company of intellectual property theft, and possible espionage back doors. Things got so testy that in 2012, Congress held hearings on allegations of spying and intellectual property theft by Huawei and ZTE and issued a government report warning that US government agencies shouldn't buy equipment from either vendor.

So, now that the bipartisan government is onboard, Cisco's sales teams have been instructed not to use it to their advantage from the top. 

While he said there may be some sales teams that can't resist talking to customers about Huawei, Robbins said doing so is not the company's official position. Instead, he wants everyone focused on selling based on Cisco's products, rather than on scare tactics about competitors.

A meeting with Huawei's founder

As for the impact of tariffs, Cisco execs say they have plans in place to deal with that. Asian component suppliers are shifting where they are making and shipping their components to be able to keep prices as low as possible. And if prices must rise on Cisco from buying from Chinese suppliers, Cisco is prepared to raise its prices to customers, CFO Chief Financial Officer Kelly Kramer told MarketWatch last month. Cisco doesn't appear to be madly dropping all of its Chinese components suppliers, even if that were possible. Robbins won't talk about what he's doing directly and he sidestepped that question at the press conference as well.

Like all US tech companies caught in the emerging tech cold war, Cisco faces a risk of retaliation through Chinese companies refusing to buy its products. Here, Robbins' attitude sounds a bit like the Serenity Prayer: 

"Obviously our business in China could be impacted if the Chinese government decided to do things differently relative to US vendors and we just have to keep operating and see how that plays out. Our job is to primarily focus on the things we can control and do our best on the other issues."

Read: Oracle revoked job offers for some people in the UK, blaming a hiring freeze. Yet it says it's both hiring and still restructuring

Interestingly enough, before the US government ban on Huawei, Chambers told Business Insider that he had actually made peace, at least somewhat, with Huawei's founder. 

Chambers said that the best way to compete is to never do anything to others that you wouldn't want done to you. "Even with Huawei taking them on very aggressively like we did, right after we solved it, I got on plane and met with  Ren Shi Wei," Chambers told Business Insider in October, referring to Huawei's billionaire founder.

Given the current state of US-China tensions though, it seems unlikely that Robbins will take page from his predecessor's diplomacy playbook and arrange a sit down with the Huawei founder.

SEE ALSO: Oracle revoked job offers for some people in the UK, blaming a hiring freeze. Yet it says it's both hiring and still restructuring.

Join the conversation about this story »

NOW WATCH: MacKenzie Bezos pledged to donate more than half of her life's fortune. Here's how she went from one of Amazon's first employees to an award-winning novelist.

18 Jun 14:52

Spike Raises $5 Million to Make Email Smarter

by Moshe Beauford
Spike UC Today

Founded in 2013, Spike markets itself as ’email reinvented.’ It may not be far off with its claim, as the conversational email app is user-friendly and built for team collaboration. By removing annoying features like subject line, headers, and signatures, Spike clears the clutter, pointing the focus to productivity and conveying a concise message. Through real-time typing alerts, users can stay on top of conversations and know if someone fails to respond via message read receipts. The app also enables voice and video calls, directly from the email app.

Another unique selling point of Spike is its file management system. Users can preview or drag-and-drop files without downloading them. Everything is there, within the message, reducing the time it takes to download files. These real-time capabilities have led to investors taking notice of what Spike is doing.

Similar in design to Facebook Messenger, with the feel of email, Spike offers ‘priority inbox’ which ensures your inbox only presents the most pressing threads first.

Spike raises $5 million dollars

The company recently closed a $5 million dollar round of funding led by Wix, Koa Labs, and NFX, which it plans to use to expand its stronghold among small businesses.

Spike Co-Founder and CEO, Dvir Ben-Aroya said:

“We are at the forefront of reshaping workplace communication, helping people take advantage of their digital identities and communicate in a more modern way, and to be more responsive and efficient with their time”

“Our partnerships with our strategic investors will speed up our outreach to small businesses.”

Wix President and COO, Nir Zohar, echoed Ben-Aroya’s sentiment in a company statement. He said he believes the way people communicate is fundamentally changing and users now demand more features that let them do tasks while collaborating with colleagues and clients. He cited this as the primary reason Wix invested in the Israeli startup.

A viable replacement to email

Dvir Ben-Aroya

Dvir Ben-Aroya

With a focus on productivity, Spike has the power to impact the way we view email. Still, in its early stages, there is a lot of potential for growth.

Spike’s founders seem confident in their offering, providing users with a free account they pay for ‘if they love it,’ according to the website. Free email accounts are equipped with unlimited email accounts, as well as, mobile, desktop, and web use. Users can even send up to 100,000 messages, create up to ten group chats, encrypted emails, voice meetings, video meetings, and benefit from basic email support.

A Spike Pro account is $7.99 each month when billed annually, and $5.99 per month when you select a monthly billing plan.

If the ambitions leaders at Spike can convince any number of the more than 3.8 billion worldwide email users to make the switch, they may prove to be solid competition for Google and Microsoft’s email platforms.

 

18 Jun 14:51

Facebook confirms it will launch a cryptocurrency called Libra in 2020

by Nick Statt

Facebook is finally ready to talk about its blockchain plans. Following numerous reports unraveling its upcoming announcement in detail, the company today said that its in-development global cryptocurrency, called Libra, will launch next year alongside the underlying blockchain-based network that will support it.

The currency is designed not to be a speculative asset, like Bitcoin, but a form of digital money backed by a reserve of assets. You will one day be able to use Libra as payment for online and offline services, Facebook executives say. At the beginning, the company imagines Libra will be used mainly to transfer money between individuals in developing countries who lack access to traditional banks. Eventually, the goal is to...

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18 Jun 14:48

Here's what Facebook's new cryptocurrency Libra will look like and how it will work

by Isobel Asher Hamilton

Mark Zuckerberg

It's official, Facebook's making its own currency.

The social network on Tuesday unveiled Libra, the secretive cryptocurrency it's been working on for more than a year. The currency is being backed by investment from big payment companies like Mastercard, Visa, and PayPal, as well as tech giants including Uber and Spotify.

Read more: Facebook just took the wraps off 'Libra', a new cryptocurrency that will let anyone in the world pay with their smartphones

Facebook has high hopes for Libra, placing the focus squarely on providing cheap, accessible financial services to the 1.7 billion people around the world without bank accounts.

It's set up a subsidiary company called Calibra, a wallet to handle users' cryptocurrency dealings, plus an independent not-for-profit "Libra Association," made up of founding companies that have already thrown their weight behind Libra to the tune of $10 million each.

Here's what we know about what Libra will look like, how it's going to work, and how people will be able to get involved.

1. Libra will be accessible through Facebook Messenger, WhatsApp, and a standalone app

Facebook has said a Libra digital wallet, in which people can store the cryptocurrency, will be accessible through Messenger, WhatsApp, and an app called Calibra – which Facebook says will be downloadable through the Apple App Store and the Google Play store.

A picture from a Facebook press release gives us some idea of what this will look like, although the company says there's a way to go before it becomes a fully functioning consumer service.

Libra

2. You'll need a government-issued ID to set it up

Once Libra launches in 2020, people will need to provide a government-issued ID to set up an account.

TechCrunch's Josh Constine writes that users will need to provide additional verification details, but if Facebook wants to keep Libra accessible to the 1.7 billion people in the world with no bank account, it will want to keep the amount of documentation required to set up an account to a minimum.

Calibra is already signing people up for "early access."

3. How will users put money in their Calibra wallets?

Users will be able to convert their local currency into Libra and then store that balance of Libra in their Calibra wallet. They'll be able to do this electronically, converting currency into Libra either using the Calibra app itself or third-party wallet apps.

cash hundred dollar bills

In terms of converting real-world cash, they'll also be able to head brick-and-mortar shops like grocers or convenience stores to top up their balance, much like people can now with top-up phone pay-as-you-go phone plans.

The idea is that a Libra will be roughly the same value as a dollar, euro, or pound so it will be easy for people to get their heads around. A valuation is still yet to be determined, however.

4. What will you be able to pay for with Libra?

So far, Facebook has shown off Libra for money transfer. Here's an example from the Calibra website:

Calibra transfer

However, Libra won't just be for individual money transfers. The Calibra website says the first version of the app will "support peer-to-peer payments and a few other ways to pay such as QR codes which small merchants can use to accept payments in Libra."

"Over time there will be many others including in-store payments, integrations into point-of-sale systems, and more." Point-of-sale systems typically just means a till, or a card reader.

Facebook's VP of blockchain product Kevin Weil also told Business Insider's Rob Price that down the road, Libra could be integrated into the systems of Calibra's partners — such as Uber.

5. It won't be fully controlled by Facebook

Facebook has set up an independent "Libra Association" to govern the currency. Facebook/Calibra is one of the 28 "founding members," alongside heavy-hitters including MasterCard, Uber, and Andreessen Horowitz. These firms paid a minimum of $10 million to join.

Libra founding partners

Mark Zuckerberg wrote in a blog post following the announcement of Libra that he hopes to get 100 members onboard before the currency launches, and it is theoretically open to rivals like Google and Twitter.

Being a member of the association entitles you to one vote, which could be used to select new founding members and elect a Libra Association managing director who will appoint an executive team.

6. Calibra won't share any info with Facebook — unless you really want it to

"Any information you share with Calibra will be kept separate from information you share on Facebook," Zuckerberg wrote in his blog post.

Libra's default setting will be to not share any information with Facebook, and the company is insistent that financial data won't be used to target ads at users. The Calibra website also says that users won't need a Facebook or WhatsApp account to sign up to Calibra.

WhatsApp

However, TechCrunch's Constine said that Calibra may ask if users wish to import contacts or profile information from Facebook.

7. So what's in it for Facebook?

In simple terms, more ad revenue. Facebook's hope is that businesses on its platform will adopt Libra, selling goods to customers using the currency. If this helps grow sales, the thinking is that it will encourage these companies to place more ads on Facebook.

8. Developers will be able to build stuff using Libra blockchain tech

Facebook is open-sourcing the new coding language it used to build Libra, called Move. This means developers will be able to create new apps using Libra.

In its blog post announcing Calibra, Facebook was careful to hedge its bets with a disclaimer:

"This announcement contains forward-looking statements regarding our future product and business plans and expectations. These forward-looking statements may differ materially from actual results due to a variety of factors and uncertainties, many of which are beyond our control."

Basically Libra is an unfinished product, so anything could change before it materializes in 2020.

Join the conversation about this story »

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14 Jun 17:51

Facebook’s cryptocurrency to debut next week backed by Visa, Mastercard, Uber, and others: WSJ

by Jon Porter

Facebook has secured the backing of over a dozen companies for its upcoming Libra cryptocurrency set to be announced next week, The Wall Street Journal reports. These companies include major financial organizations like Visa and Mastercard, and internet darlings like PayPal, Uber, Stripe, and Booking.com. Each will invest around $10 million to fund development of the currency, and will become part of the Libra Association, an independent consortium that will govern the digital coin independently of Facebook.

The involvement of major financial firms like Visa and Mastercard is interesting, because cryptocurrencies are typically seen as providing a cheaper alternative to these payment networks. The WSJ speculates that these companies want...

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14 Jun 17:50

This 3-minute video is an incredible demonstration of the new Voice Control feature in iOS 13, which lets you control every aspect of your iPhone without ever touching it (AAPL)

by Dave Smith

ios 13 voice control iphone

  • Voice Control is a brand-new accessibility feature coming to iPhones in iOS 13, which drops later this year.
  • It lets you control every single aspect of your iPhone using only your voice.
  • A YouTuber posted a 3-minute video demonstrating Voice Control in iOS 13 — you have to see it for yourself.
  • Visit BusinessInsider.com for more stories.

The iPhone has a ton of accessibility features — to help people with color blindness, poor eyesight, hearing aids, and more. 

But the newest accessibility feature coming to iPhones later this year in iOS 13 might take the cake: It will let you control every aspect of your iPhone without even touching it.

To show it in action, a YouTuber by the name of "All I Talk Is Tech" uploaded a 3-minute video demonstrating Voice Control working on an iPhone running iOS 13.

You have to see it for yourself to understand how cool this is.

SEE ALSO: Now is the best time to buy an Apple Watch

SEE ALSO: At its biggest conference of the year, Apple quietly laid the groundwork for a pair of smart glasses

With Voice Control activated, you'll see a grid appear across your phone. Your iPhone will now be listening for your voice, and acknowledge your commands by dictating what you say at the top of the screen.



Just call out a number to say where you want to go — in this case, the YouTuber says "Tap 20" to open the Settings app.



The iPhone responds by pressing the number in the grid for you, which in this case activated the Settings app. To click the "Back" button, the YouTuber says "Tap 1."



When the iPhone hears "scroll down," it scrolls down by itself — and even acknowledges your command at the top of the screen.



To go back to the home screen, just say exactly that.



Let's say you want to turn on your iPhone's flashlight. Just say "Open Control Center" ...



... then say "Tap 21," since the flashlight function is in box 21 inside the grid.



What about something a little trickier, like controlling text size? No sweat, just say "Open Control Center" then "Tap 27," since that box in the grid contains the shortcut for changing text size.



Now what? Well, just choose a number that approximates how big you want the size to be. Let's say you want the text slightly bigger: Just say "Tap 18" or "Tap 19" to move that bar up a little bit.



That's all there is to it!



The Voice Control feature in iOS 13 has a ton of settings you can tweak: You can customize your own commands, and even choose the format for controlling whatever is on your screen.



Here, you see how you can change the Voice Control overlay from a numbered grid, which is what was demonstrated here, to item names or numbers — although those look a bit more confusing and muddy to read.



Here's what you'd see if you choose to see "Item Names" instead of the "Numbered Grid." Yikes!



It's even more difficult to read the names of everything inside the Control Center.



Here's one of the other options, to see "Item Numbers" instead of "Item Names." It's much cleaner to look at.



The "Item Numbers" option also looks pretty good in the Control Center. But I think I prefer the "Numbered Grid" setting the most, since you can memorize box numbers with their location on the screen for quick navigation.



To really see Voice Control in action, be sure to watch the entire video from "All I Talk Is Tech" below.

Youtube Embed:
//www.youtube.com/embed/pkzW-4cFKy0
Width: 560px
Height: 315px

Voice Control is one of the coolest features coming to your iPhone in iOS 13. We're expecting the software update to drop around September, preceding the launch of Apple's newest iPhones.



14 Jun 17:50

NASA Spots a Martian Feature That Resembles the 'Star Trek' Logo

by Becky Ferreira

Star Trek continues to find new incarnations on screen, but that’s not the only place that the Starfleet insignia is showing up.

NASA’s Mars Reconnaissance Orbiter recently spotted a geological feature that looks a lot like the beloved franchise’s logo in the southeast Hellas Planitia region of the red planet.

Unfortunately, this Martian surface formation isn’t some kind of time-hopping message from the future Federation. It’s actually a “dune cast,” meaning the remains of an ancient dune preserved by a past volcanic eruption on Mars, according to the University of Arizona team that imaged the structure.

When lava flowed around the bottom of these dunes, it solidified their contours, even as dust at the tops of the dunes continued to be blown across the Martian surface. What remains is like a volcanic mould of the dune base from the past.

This is not the first time these crescent patterns, sometimes called “ghost dunes,” have been found on the surface of Mars. Martian regions such as Hellas Planitia or Noctis Labyrinthus contain hundreds of dune casts, but few have such a dead-on resemblance to the Star Trek logo.

13 Jun 19:23

Verizon now sells a $100 tracking device with one year of free service

by Chris Welch

Verizon today launched sales of the $99.99 Verizon Smart Locator, a tiny device that can be kept with your keys, bag, or other possessions (or pets) that you never want to lose. Similar to the Samsung SmartThings Tracker that AT&T sells, Verizon’s new gadget uses a combination of Bluetooth, GPS, Wi-Fi-based positioning (WPS), and LTE coverage “for pinpoint accuracy wherever your mobile network is present.”

Unlike a Tile, which requires you to be in Bluetooth range to find a missing item it’s attached to, Verizon says the Smart Locator will work even if you’re nowhere near it. (Tile also has a community-based feature that alerts you if another Tile owner should pass by your lost property.)

A companion Smart Locator Hub app for...

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13 Jun 14:56

Colorado among states suing to stop $26.5 billion Sprint-T-Mobile deal

by Tali Arbel, Mae Anderson

NEW YORK — Colorado is among a group of state attorneys general that filed a federal lawsuit Tuesday to block T-Mobile’s $26.5 billion bid for Sprint, citing consumer harm.

Led by New York and California, the state attorneys general said the promised benefits, such as better networks in rural areas and faster service overall, cannot be verified, while eliminating a major wireless company will immediately harm consumers by reducing competition and driving up prices for cellphone service.

New York Attorney General Letitia James said in a statement that combining the two companies would reduce access to affordable, reliable wireless service nationwide and would particularly affect lower-income and minority communities in New York and other urban areas.

Other attorneys general joining Tuesday’s lawsuit are from Colorado, Connecticut, the District of Columbia, Maryland, Michigan, Mississippi, Virginia and Wisconsin. All 10 attorneys general are Democrats. The lawsuit was filed in U.S. District Court in New York.

The lawsuit is an unusual step by state officials ahead of a decision by federal antitrust authorities. The Justice Department’s decision is pending. The Republican majority of the Federal Communications Commission supports the deal, though the agency has yet to vote.

Too many “mega mergers have sailed through the governmental approval process,” so it’s up to the states to “step up,” James said at a news conference.

“There’s no rule or regulation that we have to wait for the DOJ,” she said. She added the attorneys general will “continue to litigate whether the DOJ approves the merger or not.”

Diana Moss, the president of the American Antitrust Institute and an advocate for tougher antitrust enforcement, said the states’ lawsuit could signal to other potential merger partners that there would be tougher enforcement from states even if the federal government permitted deals to go through.

James said Tuesday that her office’s renewed focus on mergers and anti-competitiveness goes beyond the tech industry, though she did not elaborate.

T-Mobile and Sprint have argued that they need to bulk up to upgrade to a fast, powerful “5G” mobile network that competes with Verizon and AT&T. The companies are appealing to President Donald Trump’s desire for the U.S. to “win” a global 5G race.

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Consumer advocates, labor unions and many Democratic lawmakers worry that the deal could mean job cuts, higher wireless prices and a hit to the rural cellphone market.

Amanda Wait, an antitrust lawyer and former Federal Trade Commission lawyer, said states are acting because they disagree with what they have seen the federal government doing.

“They see the FCC accepting certain remedies and concessions that don’t, in their minds, solve the problem,” she said.

T-Mobile declined comment. Sprint and the Justice Department did not immediately respond to requests for comment.

One famous example of when the states and federal government diverged on a big antitrust case was in the fight against Microsoft, although that was not a merger case. Several states dissented from the Justice Department’s settlement roughly 20 years ago, pushing for tougher sanctions to curtail Microsoft’s ability to use its dominance in the Windows operating system to thwart competition in other technologies.

More recently, in the Bayer-Monsanto agribusiness merger, five states last year criticized the federal government’s approval.

T-Mobile and Sprint previously tried to combine during the Obama administration but regulators rebuffed them. They resumed talks on combining once Trump took office, hoping for more industry-friendly regulators.

T-Mobile has a reputation for consumer-friendly changes to the cellphone industry. T-Mobile and Sprint led the return of unlimited-data cellphone plans, for example.

Trying to reassure critics, T-Mobile promised the FCC it would build out a 5G network and invest in rural broadband on a specific timeframe or pay penalties. It also promised to sell off Sprint’s prepaid Boost Mobile brand and keep price increases on hold for three years.

That was enough for FCC Chairman Ajit Pai to back the deal. The other two Republican commissioners indicated they would join him.

But public-interest advocates said these conditions did not address concerns about higher prices and reduced competition — and would be difficult for regulators to enforce.

The Justice Department evaluates deals using stricter criteria than the FCC’s “public interest” standard — namely whether they harm competition and raise prices for consumers. Staff attorneys at DOJ have reportedly told the companies they won’t approve the deal as proposed, but the ultimate decision lies with Makan Delrahim, the top antitrust official who is a political appointee.

The state attorneys general said in Tuesday’s lawsuit that combining Sprint and T-Mobile would make the industry as a whole — Verizon and AT&T, too — less likely to offer plans and services that consumers like. And they say the companies have already been working to roll out 5G and don’t need to combine to do so.

Japanese tech conglomerate SoftBank owns Sprint, while Germany’s Deutsche Telekom owns T-Mobile.

13 Jun 14:55

As Boeing's problems mount, there's still no clear answer about when the 737 Max will return to the skies

by Mark Matousek

Boeing 737 Max

  • Almost a month after Boeing finished a software update for its 737 Max aircraft, it's still unclear when the plane will return to service.
  • The 737 Max has been grounded in much of the world since March following two deadly crashes that killed nearly 350 people.
  • Neither Boeing nor the Federal Aviation Administration has given a clear, public indication of when the 737 Max will receive approval to resume making commercial flights in the US.
  • Boeing faces mounting pressure from lawsuits and investigations related to the aircraft, as well as potential issues with the wings of both 737 Max and 737 Next Generation planes.
  • Visit Business Insider's homepage for more stories

Almost a month after Boeing finished a software update for its 737 Max aircraft, it's still unclear when the plane will return to service as pressure on the aerospace manufacturer builds.

The 737 Max has been grounded in much of the world since March following two deadly crashes that killed nearly 350 people. Technology designed to prevent the aircraft from stalling has come under scrutiny, as it activated during both crashes due to false sensor readings and pushed the planes downward at too steep of an angle.

On May 16, Boeing finished a software update for the 737 Max that the Federal Aviation Administration (FAA) must approve before the aircraft can resume commercial flights in the US, but neither Boeing nor the FAA has given a clear, public indication of when the approval process may end.

According to a Bloomberg report from May, Boeing told one of its biggest 737 Max customers, SpiceJet, that the aircraft would likely be flying again by July, but Boeing CEO Dennis Muilenburg declined to offer a similarly concrete prediction during a June 3 interview with CNBC.

When asked if he believed the 737 Max would resume flight before the end of the year, Muilenburg said, "I do, but again, I can't give you the specific timeline on it."

Read more: American Airlines cancels flights on Boeing's embattled 737 Max through September as the carrier's $350 million headache gets worse

In response to a question from Business Insider about when the 737 Max might return to service, a Boeing representative did not give a timeline, but said the company is working to address requests from the FAA.

"Boeing is now providing additional information to address Federal Aviation Administration (FAA) requests that include detail on how pilots interact with the airplane controls and displays in different flight scenarios," the representative said. "Once the requests are addressed, Boeing will work with the FAA to schedule its certification test flight and submit final certification documentation."

The FAA did not immediately respond to Business Insider's request for comment.

Public uncertainty around the 737 Max's return comes as Boeing faces mounting pressure from lawsuits and investigations related to the aircraft, as well as potential issues with the wings of both 737 Max and 737 Next Generation planes.

The company also faces the prospect of continued financial fallout from the 737 Max. In April, Boeing said decreased production stemming from the 737 Max bans had cost it $1 billion during the first quarter of 2019. The company made $22.9 billion in revenue during the quarter, a 2% decrease from the first quarter in 2018, and $2 billion in adjusted profits, a 21% decrease from the first quarter in 2018.

SEE ALSO: Boeing's nightmare year gets even worse as it admits hundreds of planes — including 159 737 Maxes — may have defective parts on their wings

Join the conversation about this story »

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13 Jun 14:53

Telegram blames China for ‘powerful DDoS attack’ during Hong Kong protests

by Jon Porter

Telegram founder Pavel Durov has suggested that the Chinese government may have been behind a recent DDoS attack on the encrypted messaging service. Writing on Twitter, the founder called it a “state actor-sized DDoS” which came mainly from IP addresses located in China. Durov noted that the attack coincided with the ongoing protests in Hong Kong where people are using encrypted messaging apps like Telegram to avoid detection while coordinating their protests.

The attack raises questions about whether the Chinese government is attempting to disrupt the encrypted messaging service and limit its effectiveness as an organizing tool for the hundreds of thousands of demonstrators taking part in the protests. Bloomberg reports that encrypted...

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13 Jun 14:51

SpaceX is about to launch a remarkable atomic clock for NASA that may change how we explore space

by Dave Mosher

deep space atomic clock illustration dsac orbital test bed otb spacecraft spacex falcon heavy launch nasa

SpaceX plans to lift off its Falcon Heavy rocket — the most powerful operational launch system in the world — for a third time on June 24.

When the 230-foot-tall rocket thunders away from Cape Canaveral, Florida, it will carry 25 small spacecraft inside its nosecone, including a groundbreaking clock designed to be the most accurate ever to work in space.

NASA created the multi-million-dollar timepiece, called the Deep Space Atomic Clock (DSAC), to keep track of time in space more precisely than any device before it — without being too heavy or big, or consuming too much energy.

The DSAC, which is the size of a four-slice toaster, is designed to keep time that's accurate to within one-ten-millionth of a second over the span of a year.

But obsessive timekeeping is not the overarching purpose of DSAC. The project's ultimate goal is to help robots and crewed ships navigate the solar system autonomously, without instructions from Earth. That's something spacecraft can't do today, but the capability would open the door for more flexible missions and could make some scientific instruments more powerful.

Todd Ely, a space navigator and leader of the DSAC experiment, said he thinks this type of clock will also be crucial for future human space explorers. Without an on-board atomic clock like DSAC, astronauts journeying to Mars might have to wait as much as 15 minutes for timekeeping signals from Earth to reach their spacecraft (since light takes a torturously long time to zip from Earth to deep-space locations). By then it might be too late.

"If we get out to Mars, the crew is going to want to know where they're at, and they will need to know it — potentially in real-time — in case they have to make last-minute course adjustments," Ely told Business Insider.

How the Deep Space Atomic Clock works

deep space atomic clock spacecraft illustration dsac spacex falcon heavy launch nasa

Modern clocks are glorified tuning forks. Many wristwatches, for example, keep time by running a small electric current through a crystal of quartz. The quartz responds by vibrating at a precise frequency, and that hum is then broken down into units that drive the advancement of seconds, minutes, and hours.

But all clocks have drift — a measure of inaccuracy — due to impurities in materials, changing temperatures, magnetic disturbances, and other factors.

This drift does not amount to much for wristwatches, perhaps 20 microseconds (or 0.002% of a second) per day, so it isn't a problem for those of us trying to get to a meeting on time. In space, however, "the stability and precision of the clock becomes extremely important," Ely said.

For example, NASA and other agencies keep track of a spacecraft's location and speed by sending it a radio signal and seeing how long it takes the spacecraft to send it back. Because light travels at 670,616,629 mph, a return-trip travel time of 10 minutes would mean that a spacecraft is about 111.8 million miles away from Earth. (A similar principle also enables GPS satellites to tell us where we are on Earth's surface.)

But this also means a clock's daily drift of 20 microseconds can introduce an error of nearly 4 miles — which is how far light travels in that fleeting speck of time. And that could mean missing a critical window for a space maneuver, or even smashing into a planet's surface instead of landing softly upon it.

Right now, agencies like NASA use ground-based atomic clocks to attack this problem.

mars habitats martian base camp illustration nasa PIA23302_hires

Instead of using materials like quartz to generate a tuning-fork-like frequency, atomic clocks use vapors or plasmas of a carefully chosen periodic element. In the case of DSAC, that element is mercury.

The atoms are ionized to strip away one or more outer electrons, which enables them to be trapped and cooled down in a small space. A laser is then shined on the ionized atoms, whose remaining electrons absorb some of that light, jump up in energy level, and then quickly fall back down. When the excited electrons release the energy they've temporarily absorbed, they re-emit it as light of a different and highly predictable frequency. It is this signal — the glow of excited electrons — that can be used to keep time with extreme accuracy.

The ionized atoms can bang into the walls of their container, though which can still cause drift. So atomic clocks use a number of tricks to confine them, including "cooling" lasers and electric fields.

The atomic clocks found in GPS satellites use the element rubidium, while more accurate atomic clocks use cesium, which has about 2,300 times less daily drift compared to a wristwatch. But DSAC's mercury ions, Ely said, are an especially "non-drifty kind of tuning fork."

Mercury ions don't require as much power or room, Ely said, adding that they should help DSAC beat the reliability of any atomic clock currently found on GPS satellites or other spacecraft.

"If we're able to reproduce what we've seen on the ground in our testing, once DSAC is in space, it should be the most stable atomic clock in space," he said. "We've actually talked to the Air Force about its potential use in future GPS satellites or other [Department of Defense]-type applications."

How the Deep Space Atomic Clock could change spaceflight

deep space atomic clock spacecraft dsac assembly spacex falcon heavy launch nasa clock20190604b 16

Eventually, Ely and his collaborators want to shrink DSAC into a smaller and more efficient (yet equally stable) atomic clock for future deep-space missions.

That could be a game-changer, since right now, NASA spacecraft have to wait for directions from mission control. That's because there is no GPS for deep space: All of the best atomic clocks are located on Earth, giving navigators like Ely the best information to program maneuvers. This forces engineers to upload instructions ahead of a maneuver — which means they run the risk of not accounting for unforeseen conditions or problems during, say, a Mars landing.

Having a DSAC-like device on a spacecraft may negate the need for the vehicle to wait for Earth's help. Instead, a spacecraft could "listen" for a broadcast of time from an atomic clock on Earth, then compare it to its local time (similar to GPS). This would enable the spacecraft to estimate its own location and speed in that moment.

Such information may permit a spacecraft to automatically compute and execute a course change if there's an alluring target for exploration or a looming danger — things Earth wouldn't learn about for crucial minutes due to the limited speed of light.

"You have a very powerful set of data for computing at trajectory very accurately, very robustly, and in real-time for autonomous navigation," Ely said.

For now, though, the initial goal is to show that DSAC can keep its timing error below 2 nanoseconds per day. Ely said the team is gunning for no more than about 0.3 nanoseconds (0.00000003% of a second) per day.

"A good metric for us is trying to stay within that 'don't drift outside of a few centimeters in the course of part of a day,' and that's at nanosecond-or-better level of stability over a day," Ely said, adding: "We've seen that kind of performance on the ground, and we expect to be able to do the same in space."

europa jupiter ice moon half hemisphere 2x1 nasa jpl galileo pia19048DSAC may also help future scientific instruments map the guts of icy moons that hide oceans of water, such as Europa or Ganymede, with a precision that is not currently possible. That's because the ability to better log subtle changes in speed turns a spacecraft into a gravity sensor, which can in turn reveal the presence of a planet's hidden structures.

Similarly, precise timing can help turn cameras into ultra-precise, radar-like navigation sensors, since the light they record — and when — can serve as ranging data. This gives robots and astronauts more tools to safely reach their intended destinations in space.

Perhaps more important for crewed missions, DSAC may give spacecraft multiple options for navigation.

"Let's say you have a camera system fail on you. Well, you're not dying — you can start relying on the radio data," Ely said. "You haven't lost the ability to navigate."

Of course, that is not yet a reality — DSAC first has to work in space, then the concept has to get shrunk down to a palm-size version that consumes perhaps 40% less power.

"What we have learned in developing our prototype unit is we know how to significantly reduce the size for the next version," Ely said.

SpaceX plans to launch DSAC between 11:30 p.m. ET on June 24 and 3:30 a.m. ET on June 25. The deployment of all 25 satellites, one of which DSAC is hitching a ride on, will take several hours. The company plans to show a live webcast of the launch via YouTube.

SEE ALSO: NASA is opening the space station to $35,000-a-night visits. A tourist who paid Russia $30 million to get there a decade ago says it's a 'seismic shift.'

DON'T MISS: I watched SpaceX's Falcon Heavy rocket thunder into space for the first time — here's what it was like on the ground

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13 Jun 14:48

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12 Jun 18:13

Satellites Are Quietly, Constantly Watching Us

by Ziya Tong

Ziya Tong is the author of 'The Reality Bubble,' a groundbreaking and wonder-filled look at the hidden things that shape our lives in unexpected and sometimes dangerous ways. This is excerpted from that book.

It was obvious that the dot on the map had stopped moving, but it was some time before people realized that the dot on the map had died. That dot was Michael Hall, a cyclist in a 5,500- kilometer endurance race being watched online by a community of “dot watchers,” fans who kept track of the cyclists along their thirteen-day route from Fremantle to Sydney, Australia.

Each dot had an athlete’s nametag, and it wasn’t unusual for them to pause here and there, when the athletes stopped to rest, take meal breaks, or go to the bathroom. The GPS live trackers were on board the bikes to ensure that cyclists didn’t cheat, while also providing the fans with live coverage of the riders they were following.

Over the course of the race, people began to warm up to the little dots moving about the screen. As Belinda Hoare, one of the online trackers, said, “You’d go from checking maybe once or twice a day, to checking a couple of times a day, to checking hourly, and then you’d have the map open constantly ... you really did feel like you got to know these people.”

On March 18, 2017, Hall’s dot was in second place, when at 6:22 a.m. it suddenly stopped moving near the intersection of the Monaro Highway and Williamsdale Road. It was the final day of the race, and puzzled fans began to wonder why Hall had paused at this critical point. What they did not yet know was that he had been struck by a car and killed. By GPS, they had witnessed his death.

In a few short decades, GPS has become so ubiquitous and indispensable it has entered almost every sphere of our lives. The moment you step outside with your smartphone in hand, you too are a moving dot. And though you cannot see it, the world has been overlaid with a time-and-space grid. All of us are synchronized to it and can be traced by our coordinates. We are largely unaware of the role satellites play in our lives, but stock markets, telecommunications, jogging routes, drone strikes, local weather forecasts, ATM machines, traffic lights, and food deliveries all rely on this public infrastructure that orbits silently high above us.

The signals are controlled by the U.S. Air Force and used by about a billion people daily. At night, you might occasionally see one of these GPS satellites twinkling in the sky like an artificial star as it reflects the sun. Each satellite weighs around two metric tons, and with their solar panels stretched out, the largest have wingspans of about 35 meters, or the length of two tractor-trailers. Orbiting at an altitude of 20,200 kilometers above Earth, each satellite belongs to a constellation of 24-31 GPS satellites at any given time, that zip around the planet at speeds of more than 11,000 kilometers an hour.

In their book GPS Declassified, Eric Frazier and Richard Easton imagine what Captain Cook, who navigated with real stars, might think of this modern technology.

Cook: What use are invisible stars?

Commander: We don’t need to see them. The satellites transmit electromagnetic frequencies ... radio signals that our equipment uses to determine our position. Radio signals are very rapid vibrations that our instruments detect with their antennas, which for them are like our ears, but these are not sounds anyone can hear.

Cook: You steer your ship with sounds you cannot hear from stars you cannot see?

That is exactly what we do. Humans can hear sound at a range of 20 hertz to 20 kilohertz, but GPS radio signals are much higher than that. Operating at bands of 1,227.6 megahertz and 1,575.42 megahertz, these radio waves, when they reach the ground, aren’t audible to any animal on Earth. Radio signals are incredibly faint. As Carl Sagan once said, “The total energy picked up by all the radio telescopes on the entire planet in all of history is less than the energy of a single snowflake hitting the ground.” That statement was made when he recorded the television show Cosmos in 1980. According to astronomer Frank Drake, who made the original calculation, with the additional radio waves beaming down to Earth since then, the amount might now be equal to “two snowflakes ... maybe three.”

Using receivers, however, we are able to pick up the faint waves of these signals as they wash over us. And it’s not just the US complement of satellites we can choose from either. Russia has its GLONASS satellites, the EU has Galileo, and China has its BeiDou system of navigation satellites. Pulling in signals from one or more of these systems, along with a base station at a known position for reference, today’s civilian GPS receivers can now pinpoint your location within 1.5 meters (it had been within an area about the size of a football field in the 1990s).

Of course, GPS satellites, which operate at medium Earth orbit (MEO) and circle the planet twice a day, are not the only eyes in the sky. At low Earth orbit (LEO), or an altitude of two 2,000 kilometers and below, you’ll find the majority of Earth observation satellites. Circling Earth every 90 minutes, these satellites are close to the planet’s surface and are frequently used for meteorology, map-making, and environmental monitoring. Zooming up much higher, to an altitude of 35,786 kilometers is where you’ll find the satellites operating at geosynchronous orbit (GSO) and geostationary Earth orbit (GEO). These satellites are synchronized with the rotational period of the planet and are primarily used for telecommunications, where the signals can be constantly and reliably accessed from the same spot on Earth. As artist and geographer Trevor Paglen points out, geostationary satellites are “thousands of times further away” and “remain locked as man-made moons in perpetual orbit long after their operational lifetimes.” Because they are too far away to bring back down and burn up in the atmosphere, instead, when these satellites reach the end of their lives, operators on Earth use on-board propellant to bump them up three hundred kilometers into what’s known as a graveyard orbit. Paglen notes that here they will stay circling Earth, outlasting the pyramids as remnants of our civilization. Archaeologists of the future will not just dig the earth; they will likely uncover much about the twenty-first-century human record by examining our well-preserved machines looming high up in our space cemeteries.

Beyond LEO, MEO, and GEO, however, there are still other orbits that for security reasons have no published schedules. These are the secret paths of the spy satellites. The CIA has been launching “Keyhole” (KH) class reconnaissance satellites since the 1960s. They have powerful lenses that can zoom in on the tiniest details on Earth and yet remain invisible to the general public. As was the case with GPS, the capabilities of civilian craft are several years behind what the military can do. In April 2018, Surrey Satellite Technology Ltd. announced that the United Kingdom’s Carbonite-2 satellite was able to record full-color HD video from 505 kilometers away. By stacking the frames in much the same way macro photographers do, experts can use the data to resolve an image from space down to sixty centimeters. And this is a civilian craft. With some US government restrictions relaxed, commercial imaging satellites like the ones Google uses will now be able to show images at 25 centimeters of resolution. That’s the ability to see your face—from space.

The latest spy satellites are even more powerful. Keyhole electro-optical imaging satellites of the KH-12 class are said to have a primary mirror on board that is 2.4 meters in diameter. That’s the same size as the mirror used on the Hubble Space Telescope, which is used to image objects 10-15 billion kilometers away. We can only imagine the resolution this class of reconnaissance satellites has when its lenses are turned not on outer space but on Earth. Not much is revealed about the Keyhole satellites, but we do know that launches are managed by the National Reconnaissance Office with a heavily funded budget of an estimated $10 billion a year. The satellites usually follow polar elliptical orbits, allowing them to scan all of Earth from pole to pole, passing over the equator at a different longitude each time as the planet beneath spins from day to night.

Even declassified documents about spy satellites are heavily redacted, so what we know about their locations comes largely from hobbyists who track their trajectories from Earth. These amateur astronomers have their eyes trained on the top secret machines. They are, in essence, the only eyes that watch the watchers. Communicating through a mailing list called SeeSat-L, this small group of observers from around the world uses stop-watches, telescopes, and cameras to monitor the orbital planes of approximately four hundred military satellites. As one member of the group, Marco Langbroek, described in Popular Science, “Just like the Earth has a coordinate grid, with latitude and longitude, the sky has a coordinate grid, and every star has a coordinate within that grid. And by using stars as a reference point you can determine the coordinates of a satellite in the sky.”

For most of us, these satellites are out of sight and out of mind, but the reality is there are thousands of highly advanced commercial, scientific, and military eyes that hover and swoop in the skies above us performing duties that are critical to the functioning of modern society. As geostrategist Nayef Al-Rodhan writes:

Any accidental interruption or deliberate severance of space- based services would cause immense financial losses and other disruptions. Indeed, a single day without access to space would have disastrous consequences worldwide. Approximately $1.5 trillion worth of financial market transactions per day would be stifled, throwing global markets into disarray. According to statistics provided by the International Air Transport Association, over 100,000 commercial flights crisscross the planet daily. Evidently such flights would be interrupted by communication disruptions, and deliveries of emergency health services would be severely hampered. Additionally, coordinating effective responses to crises would become nearly impossible. Due to the fundamentally transnational nature of almost all outer space activities, any conflict in outer space—even a limited one—would have disastrous consequences for the large amount of civilians globally who depend on the provision of outer space services. Contemporary strategists warn that command and control structures of modern militaries are also becoming critically dependent on space-based assets for communication, coordination, reconnaissance, surveillance, high-precision targeting and other critical military activities. This increasing indispensability of space for modern military activities makes satellites ideal targets in future conflicts.

The targeting of satellites makes everyone on Earth—especially the most developed and technologically advanced nations—exceptionally vulnerable. One incident in particular has shown the potential for serious disruption in space. On January 11, 2007, China launched a ballistic missile from Xichang Space Center. Its target was innocuous, the Fengyun-1C, an old Chinese weather satellite traveling at around 27,000 kilometers an hour. The missile carried a kinetic kill vehicle, which it released toward the weather satellite, coming in from the opposite direction at a relative velocity of 32,400 kilometers an hour. The head-on impact destroyed the satellite instantly, shattering it into a cloud of debris that sent over 35,000 shards into orbit, where they still circle like a ring of daggers around the planet. The threat of the space debris to other orbiting satellites is certainly dangerous, but the mission made something else crystal clear. While ostensibly China was decommissioning an aging satellite, it also proved to the world it had the capacity to destroy a satellite in orbit and blind another nation’s eyes.

12 Jun 18:11

Uber says it will deliver McDonald's meals via drones in San Diego as soon as this year (UBER)

by Graham Rapier

uber eats delivery test

WASHINGTON, DC — Uber plans to launch drone deliveries of McDonald's meals via drones in San Diego, the ride-hailing company's Uber Eats division announced Wednesday.

Eventually, an Uber-designed aircraft specifically for food deliveries could land on an Uber vehicle for a "partner" to make the final delivery to a customer. That would negate many of the problems other attempts at home drone delivery have encountered.

"There have been many attempts at drone delivery: landing on mailboxes and in backyards with parachutes attached," Luke Fischer, Uber Elevate's head of flight operations, said on stage at the company's conference. "But we run into the same problems with those. It simply doesn't work in dense urban environments where people don't have backyards, don't have drone capable mailboxes and don't have backyards for parachutes."

Of course, there are still plenty of regulatory questions surrounding drone operations for Uber and any other companies looking to fly drones outside an operators line or sight or over people's heads. So far, the company has completed one test flight in conjunction with San Diego State University that involved a beyond-line-of-sight delivery.

The theme of nearly every panel at Uber's elevate conference this week has been two-fold: safety and regulatory help. Speaking in separate keynotes, acting FAA administrator Daniel Elwell and Department of Transportation Secretary Elaine Chao both said the current administration is committed to empowering companies like Uber to find safe ways to innovate and launch new products, something many of the current laws do not allow for.

"The FAA is working hard to create a pathway that will enable this kind of technology," Fischer of Uber Elevate said. "So despite the potential customer experience improvements from facilitating your delivery, we would not be pursuing this without the organization structure of the FAA's UAS program."

Uber's McDonald's deliveries wil begin later this year, the company said in a press release, with two other local fine-dining restaurants also joining the program.

"Our goal is to expand Uber Eats drone delivery so we can provide more options to more people at the tap of a button," Fischer continued. "We believe that Uber is uniquely positioned to take on this challenge as we're able to leverage the Uber Eats network of restaurant partners and delivery partners as well as the aviation experience and technology of Uber Elevate."

More from Uber's Elevate conference:

SEE ALSO: Uber threw an appreciation party for drivers in Chicago and so many people showed up, cars were driving on the wrong side of the road to get through traffic

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12 Jun 18:10

Cisco Takes Aim at Collaboration Friction

By Dave Michels
Never before has the collaboration portfolio been so aligned – across the business and into the contact center
12 Jun 18:10

Logitech to Give Eyes to Video Device Management

By Beth Schultz
Company unveils a cloud-based, open platform for monitoring, managing, and analyzing video endpoints at scale.