The Biden transition team has selected David Recordon as the next White House Director of Technology.
Recordon is well-known in the open source community. He is one of the developers behind OpenId and oAuth, he has served as Engineering Director at Facebook and even served as the first Director of White House Information Technology under President Obama.
Recordon made the announcement of his appointment on LinkedIn:
I’m honored to have the opportunity to join the Biden-Harris administration’s White House senior team and am excited to both rebuild past and create new relationships with the incredible teams of career civil servants, active duty military members, and intelligence professionals who make technology work day in and day out for such an important set of missions. The pandemic and ongoing cyber security attacks present new challenges for the entire Executive Office of the President, but ones I know that these teams can conquer in a safe and secure manner together.
Give his vast, and prior, experience, it’s a safe bet Recordon will be well-equipped for his new role.
FireEye has uncovered a sophisticated intrusion campaign against government and corporate organizations, using a supply chain attack.
Supply chain attacks are one of the most sophisticated types of hacks in existence. While many hacks rely on convincing a target to download malicious software, a supply chain attack involves inserting malicious code in legitimate software before it’s distributed to customers, hence attacking the software supply chain.
The attack in question uses a compromised update to SolarWind’s Orion IT monitoring and management software, with FireEye calling the compromised version “SUNBURST.” The trojanized version is incredibly sophisticated, using various methods to avoid detection, all the while communicating with third-party servers.
“After an initial dormant period of up to two weeks, it retrieves and executes commands, called “Jobs”, that include the ability to transfer files, execute files, profile the system, reboot the machine, and disable system services,” writes FireEye’s team. “The malware masquerades its network traffic as the Orion Improvement Program (OIP) protocol and stores reconnaissance results within legitimate plugin configuration files allowing it to blend in with legitimate SolarWinds activity. The backdoor uses multiple obfuscated blocklists to identify forensic and anti-virus tools running as processes, services, and drivers.”
The trojan has enabled hackers to monitor email communications at the US Treasury and Commerce departments, according to Reuters. FireEye says victims have also “included government, consulting, technology, telecom and extractive entities in North America, Europe, Asia and the Middle East.” Since the attack is actively in progress, FireEye suspects there will be additional victims as well.
To mitigate the attack, “SolarWinds recommends all customers immediately upgrade to Orion Platform release 2020.2.1 HF 1, which is currently available via the SolarWinds Customer Portal. In addition, SolarWinds has released additional mitigation and hardening instructions here.”
If an organization is not able to update, FireEye has outlined additional mitigation steps that should be taken.
Security firm FireEye is the latest victim of a cyberattack, and likely the victim of a state-sponsored attack.
FireEye is one of the leading cybersecurity firms, providing consulting, services, software and hardware to customers. The company has been involved in detecting and fighting multiple high-profile attacks. Its history and expertise make the news it was attacked all the more concerning.
CEO Kevin Mandia outlined the attack in a blog post:
Based on my 25 years in cyber security and responding to incidents, I’ve concluded we are witnessing an attack by a nation with top-tier offensive capabilities. This attack is different from the tens of thousands of incidents we have responded to throughout the years. The attackers tailored their world-class capabilities specifically to target and attack FireEye. They are highly trained in operational security and executed with discipline and focus. They operated clandestinely, using methods that counter security tools and forensic examination. They used a novel combination of techniques not witnessed by us or our partners in the past.
Mandia says the attackers used some of the company’s Red Team tools that FireEye uses to test its customers’ security. As a result, FireEye is releasing the necessary information for customers to mitigate the threat those tools now pose.
We are not sure if the attacker intends to use our Red Team tools or to publicly disclose them. Nevertheless, out of an abundance of caution, we have developed more than 300 countermeasures for our customers, and the community at large, to use in order to minimize the potential impact of the theft of these tools.
FireEye is working with the FBI and Microsoft to investigate the incident. Nonetheless, the fact that the attackers are using methods the company has never seen before is not very encouraging for the cybersecurity industry.
Informally, Industrial Revolutions are referred to as Industry “Points O’s.” The First Industrial Revolution, or Industry 1.0, took place between 1760 and 1830, the second following up shortly after between 1870-1914. Between 1950-2002, the world underwent “digitalization” as a result of the Third Industrial Revolution, or Industry 3.0; and since 2011, we have been undergoing the Fourth Industrial Revolution, more commonly known as Industry 4.0. As a result of digitalization, data intelligence has been a primary driver in prospective industry revolutions.
As a result of Industry 1.0, machines and tools were able to replace animal and human labor. This was especially monumental for its time (1760-1830). How? The use of iron and steel for machinery began to skyrocket. As a result, working class citizens were able to create new resources, such as steam and internal combustion engines – which went on to drive a sector of the economy in itself.
Under Industry 2.0 (1870-1914), workers of the mass production industry saw many days of sunshine. For the first time, assembly line efficiency and productivity was lightened and shipping was made easier due to the invention of railways and telegraphs – another product of Industry 2.0. More along, new materials such as stainless steel and plastics were introduced as societal benefits.
Things got more technological under Industry 3.0 (1950-2002). The Third Industrial Revolution introduced electronics and IT, as well integrated them into manufacturing procedures. As a result, society saw a massive rise in telecommunications, computers, and even nuclear power. There was also a noteworthy widespread in factory automation, such as the incorporation of robots and PLCs to contribute to the general workflow.
Since 2011, interconnectivity has been the key focus. Already, Industry 4.0 is set to provide higher-level automation driven by artificial intelligence, as well as optimized manufacturing using real-time data and sensors. Additionally, this Industrial Revolution is focusing on a way to integrate cyber-physical systems throughout the supply chain.
In its outcome, Industry 4.0 will have used big data and machine learning to automate plants, warehouses, machines, and more. Furthermore, Industry 4.0 will have created smart machines that will be capable of collecting and analyzing data, as well as communicating the right information at the right time.
In other words, the Fourth Industrial Revolution will lay improvements across 3 new sectors: smart communication, data quality, and smart devices.
Smart communication allows manufacturers to rapidly respond to changing demand, inventory shortfalls, or equipment faults. Data Quality helps companies quickly locate problems so they can respond to them quicker. Additionally, data quality can be refined through organization-wide networks. Smart Devices create increasingly autonomous ecosystems that act as a catalyst for the future of the industry. Examples of these include driverless vehicles and drones. Driverless vehicles can navigate factories and warehouses, and drones can be used for maintenance and inventory management.
With that being said, business owners should seek insights on the ways they’re being impacted by Industry 4.0 In other words, this is a great time to prepare an effective data structure, focus on high-fidelity data creation and communication, standardardized business and data process, and understand your business’ use case. If even one important portion of the data is missing, it can break the digital thread – causing the flow of data to stop.
Is your data ready for Industry 4.0? Find out in the infographic below.
AWS has unveiled the AWS Network Firewall in an effort to help customers protect their cloud-based virtual networks.
AWS is currently the top cloud platform, with 31% of the cloud computing market. One of AWS’ biggest strengths is the breadth and depth of services the platform offers.
The company is building on that with its latest announcement, AWS Network Firewall, “a high availability, managed network firewall service” for virtual private clouds (VPC). The new service complements the other firewall capabilities AWS currently provides, such as “Security Groups to protect Amazon Elastic Compute Cloud (EC2) instances, Network ACLs to protect Amazon Virtual Private Cloud (VPC) subnets, AWS Web Application Firewall (WAF) to protect web applications running on Amazon CloudFront, Application Load Balancer (ALB) or Amazon API Gateway, and AWS Shield to protect against Distributed Denial of Service (DDoS) attacks.”
The AWS Network Firewall can be setup with just a few clicks, and the company touts its ability to scale as needed, eliminating the need to manage additional infrastructure.
“With AWS Network Firewall, you can implement customized rules to prevent your VPCs from accessing unauthorized domains, to block thousands of known-bad IP addresses, or identify malicious activity using signature-based detection,” writes Channy Yun is a Principal Developer Advocate for AWS. “AWS Network Firewall makes firewall activity visible in real-time via CloudWatch metrics and offers increased visibility of network traffic by sending logs to S3, CloudWatch and Kinesis Firehose. Network Firewall is integrated with AWS Firewall Manager, giving customers who use AWS Organizations a single place to enable and monitor firewall activity across all your VPCs and AWS accounts. Network Firewall is interoperable with your existing security ecosystem, including AWS partners such as CrowdStrike, Palo Alto Networks, and Splunk. You can also import existing rules from community maintained Suricata rulesets.”
The news is a welcome addition to AWS’ cybersecurity services and will help customers keep their VPCs even safer.
IBM has announced it is acquiring applications performance monitoring (APM) company Instana to aid in its hybrid cloud and AI strategy.
IBM made headlines in October when it announced its plans to split itself into two companies. The legacy business will be split into a new company, while the core IBM doubles down on hybrid cloud and AI services.
To assist in those goals, the company is now acquiring Instana, a startup that uses AI to help companies monitor the performance of cloud apps and services. The startup’s platform is a natural fit for IBM’s newfound focus.
“Our clients today are faced with managing a complex technology landscape filled with mission-critical applications and data that are running across a variety of hybrid cloud environments – from public clouds, private clouds and on-premises,” said Rob Thomas, Senior Vice President, Cloud and Data Platform, IBM. “IBM’s acquisition of Instana is yet another important step that we are taking to provide companies with the most complete portfolio of AI-automated solutions to tackle this enormous challenge and help prevent unforeseen IT incidents that can cost a business in lost revenue and reputation.”
At the same time, being part of IBM will help Instana develop its service even more, becoming a dominant player in the DevOps community.
“With the added responsibility of ensuring the build and run quality of the software they develop, DevOps teams need a new generation of application performance monitoring and observability capabilities to succeed,” said Mirko Novakovic, co-founder and CEO, Instana. “Instana’s observability capabilities combined with IBM’s AI-powered automation capabilities across hybrid cloud environments will give clients a full view of their application performance to best optimize operations.”
Microsoft co-founder Bill Gates says that over 50% of business travel and 30% of time in the office will never come back even after pandemic restrictions are lifted:
My prediction would be that over 50% of business travel and over 30% of days in the office will go away. Now it’s not the gold standard that to fly all the way here to sit in front of me that. You can do the virtual connection. It will be a very high threshold to actually doing that business trip. There will be ways that you can work from home a lot of the time. Some companies will be extreme on one end or the other.
I just don’t like talking to African leaders and I always feel bad for African leaders. There are so many conferences in Europe and the US that they are expected to come to. Yet, their job in their countries is so important like their education or health system or collecting taxes or disability. Yet, they spend half their time on all these trips. The fact is now we can do a 20-minute call as needed and touch with base them. It’s been pretty impressive how a lot has gotten done. We will go to the office somewhat. We will do some business travel but dramatically less.
The fact that the (video communication) software doesn’t have any sort of serendipitous thing of people you run into after the meeting or gathering thing, there is some work to be done there. So no I haven’t run into somebody and made a new friendship. There is something missing there.
Bill Gates: Over 50% Of Business Travel To Go Away Permanently
“It’s a question of understanding what’s hybrid as opposed to pure public,” says IBM CEO Arvind Krishna. “I look at both Microsoft and Amazon as likely partners in this journey, not as being the one and two. In the hybrid world, the question is where does the client want to decide where the workload runs? They can run it on Amazon, they can run it on Microsoft, they can run it on IBM, or they can run it on private. What is the technology platform that goes across all of those? Red Hat gives a great answer to that technology platform.”
“There are many capabilities people need around integration and cybersecurity,” adds Krishna. “We’ll bring those to bear. Then we will bring our services to bear for those clients who would like to get that help both in improving the skills of their own people or for us to do the work for them. That is why you see us report $24 billion dollars in the trailing 12 months on total cloud revenue. That’s a hybrid market and not a singular public cloud market.”
IBM CEO Arvind Krishna On Hybrid Cloud: Microsoft and Amazon Likely Partners
“The biggest takeaway from our research is that organizations should expect cybercriminals to become more brazen as the potential opportunities and pay-outs from these campaigns climb to the stratosphere,” says Josh Ray, who leads Accenture Security’s cyber defense practice globally.
“Since COVID-19 radically shifted the way we work and live, we’ve seen a wide range of cyber adversaries changing their tactics to take advantage of new vulnerabilities,” said Accenture’s Josh Ray. “In such a climate, organizations need to double down on putting the right controls in place and by leveraging reliable cyber threat intelligence to understand and expel the most complex threats.”
Sophisticated adversaries mask identities with off-the-shelf tools
Throughout 2020, Accenture CTI analysts have observed suspected state-sponsored and organized criminal groups using a combination of off-the-shelf tooling — including “living off the land” tools, shared hosting infrastructure and publicly developed exploit code — and open source penetration testing tools at unprecedented scale to carry out cyberattacks and hide their tracks.
For example, Accenture tracks the patterns and activities of an Iran-based hacker group referred to as SOURFACE (also known as Chafer or Remix Kitten). Active since at least 2014, the group is known for its cyberattacks on the oil and gas, communications, transportation and other industries in the U.S., Israel, Europe, Saudi Arabia, Australia and other regions. Accenture CTI analysts have observed SOURFACE using legitimate Windows functions and freely available tools such as Mimikatz for credential dumping. This technique is used to steal user authentication credentials like usernames and passwords to allow attackers to escalate privileges or move across the network to compromise other systems and accounts while disguised as a valid user.
According to the report, it is highly likely that sophisticated actors, including state-sponsored and organized criminal groups, will continue to use off-the-shelf and penetration testing tools for the foreseeable future as they are easy to use, effective and cost-efficient.
Ransomware feeds new profitable, scalable business model
Ransomware has quickly become a more lucrative business model in the past year, with cybercriminals taking online extortion to a new level by threatening to publicly release stolen data or sell it and name and shame victims on dedicated websites. The criminals behind the Maze, Sodinokibi (also known as REvil) and DoppelPaymer ransomware strains are the pioneers of this growing tactic, which is delivering bigger profits and resulting in a wave of copycat actors and new ransomware peddlers.
Additionally, the infamous LockBit ransomware emerged earlier this year, which — in addition to copying the extortion tactic — has gained attention due to its self-spreading feature that quickly infects other computers on a corporate network. The motivations behind LockBit appear to be financial, too. Accenture CTI analysts have tracked cybercriminals behind it on Dark Web forums, where they are found to advertise regular updates and improvements to the ransomware, and actively recruit new members promising a portion of the ransom money.
The success of these hack-and-leak extortion methods, especially against larger organizations, means they will likely proliferate for the remainder of 2020 and could foreshadow future hacking trends in 2021. In fact, Accenture CTI analysts have observed recruitment campaigns on a popular Dark Web forum from the threat actors behind Sodinokibi.
A Dell Technologies commissioned an independent survey of 4,300 worldwide business leaders indicates a massive shift toward digital transformation in 2020 accelerated by the pandemic. The survey indicates that 80% of organizations globally have fast-tracked some digital transformation programs this year. But just 41% accelerated all or most of their programs. Dell says that this is the third installment of their Digital Transformation Index (DT Index), designed to show how businesses are adapting to unprecedented uncertainty during a global pandemic.
Incredibly, 79% are reinventing their business model as a result of the disruption caused by the pandemic and 50% of international business leaders worry they didn’t transition fast enough. The study notes that digital transformation is not easy, 94% of businesses surveyed say they are facing entrenched barriers spanning across technology, people, and policy.
According to the 2020 DT Index, the following are the top-3 barriers to digital transformation success:
Data privacy and cybersecurity concerns (up from 5th place in 2016)
Lack of budget and resources (#1 in 2016, #2 in 2018)
Unable to extract insights from data and/or information overload (a jump of eight places since 2016)
“We’ve been given a glimpse of the future, and the organizations that are accelerating their digital transformation now will be poised for success in the Data Era that is unfolding before our eyes”, says Michael Dell, Chairman, and CEO, Dell Technologies.
Additionally, the survey reveals a huge shift toward remote work. About 25% of employees worked remotely before the pandemic and today it is more than 50% of all employees are remote. According to the survey, remote work has become the new normal.
Top IT Investments Are For Emerging Technologies
Prior to the pandemic, business investments were strongly focused on foundational technologies, rather than emerging technologies. The vast majority, 89 percent recognizethat as a result of disruption this year, they need a more agile/scalable IT infrastructure to allow of contingencies. The DT Index shows the top technology investments for the next one to three years:
Cybersecurity
Data management tools
5G infrastructure
Privacy software
Multi-Cloud environment
And recognizing the importance of emerging technologies, 82 percent of respondents envision increased usage of Augmented Reality to learn how to do or fix things in an instant; 85 percent foresee organizations using Artificial Intelligence and data models to predict potential disruptions, and 78 percent predict distributed ledgers – such as Blockchain – will make the gig economy fairer (by cutting out the intermediary).
Despite these findings, only 16 percent are planning to invest in Virtual/Augmented Reality, just 32 percent intend to invest in Artificial Intelligence, and a mere 15 percent plan to invest in distributed ledgers in the next one to three years.
SAP announced that a new IDC economic impact model predicts the revenue SAP partners generate will nearly double over the next four years.
“The pandemic has driven digital transformation into every corner of the enterprise to allow businesses to adapt and continue operating as usual,” said Steve White, program vice president, channels and alliances, IDC. “As the economic situation continues to unfold and businesses move their focus from resiliency to recovery, those that leverage digital and cloud-based solutions will be more agile and future-proof, and we’re seeing that acknowledgment drive significant adoption.”
SAP commissioned the research to explore the impact of the current economic landscape on the partner ecosystem. The data shows that due to the pandemic-driven increase in remote work, digital transformation efforts are advancing, and companies are expected to spend more on cloud-based solutions. This translates into a $204.4 billion cloud market opportunity for SAP partners from now until the end of 2024. This cloud revenue figure represents 68% of the total net-new opportunity for our partners over that period of time.
“This research confirms the vast and continually growing market opportunity for SAP partners,” said Karl Fahrbach, chief partner officer, SAP. “SAP’s next-generation partnering movement drives partners’ sustained growth by establishing partner-centric sales and service and connecting with customers in new ways across their life cycle. This higher level of ecosystem engagement can increase customer satisfaction, lead to faster time to value and enhance customer lifetime value.”
IBM and ServiceNow are partnering to provide enterprise solutions that utilize AI to automate IT operations. The new joint solution combines IBM’s AI‑powered hybrid cloud software and professional services to ServiceNow’s intelligent workflow capabilities and IT service and operations management products. The solution raises up deep AI‑driven insights from their data and then recommends actions for IT organizations to take that help them prevent and fix IT issues at scale.
“AI is one of the biggest forces driving change in the IT industry to the extent that every company is swiftly becoming an AI company,” said Arvind Krishna, Chief Executive Officer, IBM. “By partnering with ServiceNow and their market-leading Now Platform, clients will be able to use AI to quickly mitigate unforeseen IT incident costs. Watson AIOps with ServiceNow’s Now Platform is a powerful new way for clients to use automation to transform their IT operations.”
“For every CEO, digital transformation has gone from opportunity to necessity,” said ServiceNow CEO Bill McDermott. “As ServiceNow leads the workflow revolution, our partnership with IBM combines the intelligent automation capabilities of the Now Platform with the power of Watson AIOps. We are focused on driving a generational step improvement in productivity, innovation, and growth. ServiceNow and IBM are helping customers meet the digital demands of 21st-century business.”
ServiceNow says that in today’s technology‑driven organization, even the smallest outages can cause massive economic impact for both lost revenue and reputation. They note that this partnership will help customers address these challenges and help avoid unnecessary loss of revenue and reputation by automating old, manual IT processes and increasing IT productivity.
Here is what IBM and ServiceNow are planning:
Joint Solution: IBM and ServiceNow will deliver a first of its kind joint IT solution that marries IBM Watson AIOps with ServiceNow’s intelligent workflow capabilities and market‑leading ITSM and ITOM Visibility products to help customers prevent and fix IT issues at scale. Now, businesses that use ServiceNow ITSM can push historical incident data into the deep machine learning algorithms of Watson AIOps to create a baseline of their normal IT environment, while simultaneously having the ability to help them identify anomalies outside of that normal, which could take a human up to 60% longer to manually identify, according to initial results from specific Watson AIOps early adopter clients. The joint solution will position customers to enhance employee productivity, obtain greater visibility into their operational footprint and respond to incidents and issues faster.
Specific product capabilities will include:
ServiceNow ITSM allows IT to deliver scalable services on a single cloud platform estimated to increase productivity by 20%.
ServiceNow ITOM Visibility automatically delivers near real‑time visibility from a native Configuration Management Database, into all resources and the true operational state of all business services.
IBM Watson AIOps uses AI to automate how enterprises detect, diagnose, and respond to, and remediate IT anomalies in real time. The solution is designed to help CIOs make more informed decisions when predicting and shaping future outcomes, focus resources on higher‑value work and build more responsive and intelligent applications that can stay up and running longer. Using Watson AIOps, the average time to resolve incidents was reduced by 65 percent, according to one recent initial proof of concept project with a client.
Services: IBM is expanding its global ServiceNow business to include additional capabilities that provide advisory, implementation, and managed services on the Now Platform. Highly‑skilled IBM practitioners will apply their expertise to facilitate rapid delivery of valuable insights and innovation to clients. IBM Services professionals also will introduce clients to intelligent workflows to help improve resiliency and reduce IT risk. ServiceNow is co‑investing in training and certification of IBM employees and dedicated staff for customer success.
“Businesses are facing increased pressures to match the digital pace of a cloud‑first market in order to meet the demands of their customers,” said Stephen Elliot, program vice president, DevOps, and Management Software, IDC. “The C‑ suite is transforming workflows to deliver insights and automation for more efficient customer engagement models and cost containment strategies for the business while simplifying IT operations and increasing collaboration between IT and business stakeholders.”
“The next decade looking ahead is going to be the Software Decade,” says Snowflake board member and Altimeter Capital partner Kevin Wang. “Trends of moving more software to the cloud are just persisting. Cloud has completely changed the way that software is built and run. Software itself is being completely transformed. If what you saw over the past decade was exciting I’m even more excited about the next decade.”
The past decade has been a prolific time for technology companies. When you look at what we are set up for in the next decade it’s good to pause right now to see what has happened during the pandemic. We’ve seen that software is an integral part of the global economy. During the pandemic, we’ve found that we couldn’t go through the pandemic without the tools that we have.
Stanford research shows that just during the month of May over two-thirds of US GDP was created in our homes alone. That’s just incredible. These trends of moving more software to the cloud are just persisting. The next decade looking ahead is going to be the Software Decade.
Software Itself Is Being Completely Transformed
When we take a step back we look at how these companies are set up for the next ten years. It’s easy to get focused on what might happen in the short run. These trends are so powerful that they are going to power these companies and adoption for several years. It’s true that the pandemic has accelerated and pulled forward a lot of that demand. But a lot of the trends and behaviors we see are going to persist. For example, people are talking over Zoom and that’s just changed the way we are going to work. We can give a lot of examples of how that’s going to persist over the long run.
Software itself is being completely transformed. If what you saw over the past decade was exciting I’m even more excited about the next decade. What you have to understand is that cloud has completely changed the way that software is built and run. As we know, as business are digitally transforming they themselves are building and running more software. When you think about how to do that cloud has changed that.
Historically, you always had to decide better, faster, cheaper. You could only pick one or two of them. Now you can do all three. When you look at Snowflake, for example, you used to have to manage a cloud data warehouse, and that was a lot of work for your database experts. You don’t have to do any of that anymore. Snowflake will manage all of that for you.
The Software Decade Is Now – Altimeter Capital partner Kevin Wang
“Even ahead of COVID, the market for companies who are undergoing digital transformation and who need to use digital technologies to compete and win in the modern economy was enormous,” says Twilio CEO Jeff Lawson. “COVID has been a tailwind to Twilio business but really is an acceleration of the trends that have gone on for the last 10 to 20 years as a result of digital transformation in nearly every kind of company.”
Even ahead of COVID, the market for companies who are undergoing digital transformation and who need to use digital technologies to compete and win in the modern economy was enormous. What COVID did is it accelerated many of the initiatives, many of the use cases, the things that companies needed to build to be competitive in this digital era were accelerated.
They were accelerated because of COVID, because of social distancing, work from home, and migrating a lot of these business processes to software and into the cloud and modernizing all of this. COVID has been a tailwind to Twilio business but really is an acceleration of the trends that have gone on for the last 10 to 20 years as a result of digital transformation in nearly every kind of company.
I’m Not Very Concerned About Microsoft
I’m not very concerned (about new competitors like Microsoft). It’s the same reason that (I wasn’t concerned) when Amazon started building products in the communication space or Facebook or Google or even Blackberry once announced that they were going to compete with Twilio. First of all, we’re no stranger to competition. This is a huge market. It’s no surprise that a wide variety of companies have products in the communications domain.
We compete by focusing on our customers, listening to what they need, and building differentiated APIs, a differentiated platform, and a differentiated super network. We’ve got a 12-year head start on anybody entering the space. The last thing I’ll add is that we are not a company that is very focused on competition. We’re focused on our customers. That focus has driven us for the last 12 years and has served us very well. We will continue to focus on the things our customers need in this enormous market and be able to take a lot of market share.
Digital-Native Companies Want APIs That Work
Strangely, I don’t think Microsoft CEO Satya Nadella wakes up every day thinking about Twilio. But we are also no stranger to pricing competition. In fact, that is how most companies have tried to compete with us through our 12-year history. They come in with an inferior product and they say we’re going to be cheaper. But it turns out that the biggest enterprises on the planet or digital-native companies, what they want are APIs that work, mature, scalable, and that work everywhere around the world.
We’ve invested a tremendous amount of time and money to build the leading platform out there and what we found is that customers value that. So we’re no stranger to people trying to undercut us on price. What we think and what we hear from our customers is that they want quality, they want reliability, and they want HIPAA compliance. They want all sorts of capabilities that let them power their business and that’s what we offer.
Low-Code, No-Code, and Yo-Code
Low-code is a really exciting area. There are three buckets. There’s low-code, no-code, and then yo-code for the people who love to write code, developers. We’ve got products really for that whole spectrum. The typical way a developer might build on top of Twilio is to write code and host it themselves. We have a Twilio Functions product that allows us to host the software for our customers. Then we have Twilio Studio which is a drag and drop designer for the non-developer to be able to build out sophisticated workflows like interactive voice response systems on top of Twilio.
We have embraced really all three of those categories of builders. We do believe that at every enterprise there is a large number of builders with different skill sets who are building the future of how those companies engage with their customers. We want to enable all those people to succeed on Twilio.
Twilio CEO Jeff Lawson: COVID Accelerated Digital Transformation
We are going to be the most important software company in the world,” says Planatir co-founder and CEO Alex Karp. “We are going to deliver the world’s best software with the most efficient way of delivering it. Well over 90% of our growth in the first half of the year came from our existing clients. Our existing clients, the most important clients in the world, are really happy. Of course, we are going to expand those really happy clients who happen to be the coolest people on the planet.”
Alex Karp, co-founder, and CEO of Palantir Technologies Inc. says his company which initiated a direct listing today on the New York Stock Exchange will become the most important software company in the world:
We are very focused on building software a long time before others build it. We are going to be the most important software company in the world. We are going to deliver the world’s best software with the most efficient way of delivering it.
What’s interesting about our client list that people ask is how can you have this super valuable company when there are only 125 customers? To which I respond, yeah, but they are the 125 most interesting institutions in the world. These aren’t just any institutions. We don’t go out and advertise who uses our product but I would say the list of our clients is the single most impressive list of institutions in the world I’ve ever seen. We want to keep these clients.
Well over 90% of our growth in the first half of the year came from our existing clients. What does that mean? Our existing clients, the most important clients in the world, are really happy. Of course, we are going to expand those really happy clients who happen to be the coolest people on the planet.
We’ve built this product which has gotten very little attention called Apollo. Apollo allows us to maintain and deliver software to any number of clients while essentially not growing our Palantiring force at all. We are planning, now that we have Apollo, to grow the number of super cool customers all over the world. We can do it without raising our headcount. What you are going to see is that we are going to continue building with our clients.
Why, because they are the most interesting clients in the world and they clearly based on our numbers like us and some love us. Now with Apollo, we can deliver the whole stack in six hours. I don’t think any other company I’ve seen in the world can do that and we can do it with efficiencies that I don’t know any other company is going to do. We can do this with a small number of people sitting in one office that we have maintaining, updating, and providing them with new products we build.
They don’t have the Frankenstein monster that takes two years to build and has to be maintained with either human hours, like in the government contracting case, or by purchasing new product or compensating salespeople.
Palantir CEO Alex Karp: The Most Important Software Company In The World
“What we’re announcing today is the democratization of AI,” says VMWare CEO Pat Gelsinger. “VMWare and Nvidia are coming together to leverage all the work they have done over the last decade and a half in AI. This partnership will put it on the industry-standard VMWare footprint to enable every enterprise to have this game-changing technology of AI. We see it as a game-changer for the AI industry broadly.”
Patrick Gelsinger, CEO of VMWare, announced just before this year’s huge virtual VMworld 2020 conference a partnership with Nvidia that will bring on the democratization of AI:
The Democratization Of AI
Nvidia and VMWare are coming together in a new partnership. Nvidia has been building their capabilities in artificial intelligence are for quite a number of years. But AI is used by only 10 to 15% of enterprises where specialized hardware sits in the corner of the data center and is only available in remote cloud environments. What we’re announcing today is the democratization of AI. VMWare and Nvidia are coming together to leverage all the work they have done over the last decade and a half in AI.
This partnership will put it on the industry-standard VMWare footprint to enable every enterprise to have this game-changing technology of AI. Literally, that software can introspect on data and write software and bring that to every enterprise application. We are quite excited about the partnership. Nvidia CEO Jensen Huang and I have known each other for several decades and it really is exciting to see us bring the partnership to the next level.
Making AI Broadly Available For Enterprises
We are excited about it. We do see that this idea that we can now make AI broadly available for enterprises. It’s exciting for Nvidia because even as successful as they’ve been, they are still only cracking a small piece of the application workload. For us, this is a major accelerant not just in the data center but also extending to the Edge. As we see 5G and Edge emerge this is a major new area for both companies.
With our Tanzu offerings and virtualization offerings, it really is saying that now every enterprise can start to take availability of these powerful AI capabilities. We see it as a game-changer for the AI industry broadly and cleary an accelerant for us and for Nvidia and for our financials.
The Edge – Next Major Move Of Application Development
Multi-cloud is the core of our Tanzu offerings. We want to help companies take advantage of the most modern CI/CD pipeline DevOps, DevSecOps capabilities. But they need to be able to take advantage of it in their private data centers, across multiple clouds, and to the Edge. For this, clearly, our preferred partnership with Amazon has really taken off. Now with Azure and Google and Oracle and the Alibaba partnership showing up now they can take advantage of that across any cloud and be able to go from their private data centers to the cloud and back.
We now have major customers of which a number of those we are highlighting at VMWorld who really are taking advantage of both to the cloud as well as from the cloud. This hybrid approach enables us to save 30% on average for customers. It’s a big savings but it also enables customers to have consistent developer environments and take advantage of the Edge. The Edge will be the next major move of application development as 5G starts to become broadly available in the industry.
“Today starts a new chapter in our close collaboration with the telecommunications industry to unlock the power of 5G and bring cloud and edge closer than ever,” said Microsoft Azure Executive Vice President Jason Zander in a blog announcement. “We’re building a carrier-grade cloud and bringing more Microsoft technology to the operator’s edge. This, in combination with our developer ecosystem, will help operators to future proof their networks, drive down costs, and create new services and business models.”
Jason Zander, Executive Vice President, Microsoft Azure, announces new collaborations with the telecommunications industry that will unlock the power of 5G and bring cloud and edge closer than ever:
The increasing demand for always-on connectivity, immersive experiences, secure collaboration, and remote human relationships is pushing networks to their limits, while the market is driving down price. The network infrastructure must ensure operators are able to optimize costs and gain efficiencies, while enabling the development of personalized and differentiated services. To address the requirements of rolling out 5G, operators will face strong challenges, including high capital expenditure (CapEx) investments, an increased need for scale, automation, and secure management of the massive volume of data it will generate.
Today starts a new chapter in our close collaboration with the telecommunications industry to unlock the power of 5G and bring cloud and edge closer than ever. We’re building a carrier-grade cloud and bringing more Microsoft technology to the operator’s edge. This, in combination with our developer ecosystem, will help operators to future proof their networks, drive down costs, and create new services and business models.
In Microsoft, operators get a trusted partner who will empower them to unlock the potential of 5G. Enabling them to offer a range of new services such as ultra-reliable low-latency connectivity, mixed reality communications services, network slicing, and highly scalable IoT applications to transform entire industries and communities.
By harnessing the power of Microsoft Azure, on their edge, or in the cloud, operators can transition to a more flexible and scalable model, drive down infrastructure cost, use AI and machine learning (ML) to automate operations and create service differentiation. Furthermore, a hybrid and hyper-scale infrastructure will provide operators with the agility they need to rapidly innovate and experiment with new 5G services on a programmable network.
More specifically, we will further support operators as they evolve their infrastructure and operations using technologies such as software-defined networking, network function virtualization, and service-based architectures. We are bringing to market a carrier-grade platform for edge and cloud to support the operator’s goals to future proof their infrastructure with disaggregated, and containerized network architectures. Recognizing that not everything will move to the public cloud, we will meet operators where they are—whether at the enterprise edge, the network edge, or in the cloud.
Our approach is built on the acquisitions of industry leaders in cloud-native network functions—Affirmed Networks and Metaswitch and on the development of Azure Edge Zones. By bringing together hundreds of engineers with deep experience in the telecommunications space, we are ensuring that our product development process is catering to the most relevant networking needs of the operators. We will leverage the strengths of Microsoft to extend and enhance the current capabilities of industry-leading products such as Affirmed’s 5G core and Metaswitch’s UC portfolio. These capabilities, combined with Microsoft’s broad developer ecosystem and deep business to business partnership programs, provide Microsoft with a unique ability to support the operators as they seek to monetize the capabilities of their networks.
Your customer, your service, powered by our technology
As we build out our partnerships with different operators, it is clear to us that there will be different approaches to technology adoption based on business needs. Some operators may choose to adopt the Azure platform and select a varied mix of virtualized or containerized network function providers. We also have operators that have requested complete end-to-end services as components for their offers. As a part of these discussions, many operators have identified points of control that are important to them, for example:
Control over where a slice, network API, or function is presented to the customer.
Definition of where and how traffic enters and exits their network.
Visibility and control over where key functions are executed for a given customer scenario.
Configuration and performance parameters of core network functions.
As we build out Azure for Operators, we recognize the importance of ensuring operators have the control and visibility they require to manage their unique industry requirements. To that end, here is how our assets come together to provide operators with the platform they need.
Communication Service Providers
Interconnect
It starts with the ability to interconnect deeply with the operator’s network around the globe. We have one of the largest networks that connect with operators at more than 170 points of presence and over 20,000 peering connections around the globe, putting direct connectivity within 25 miles of 85 percent of the world’s GDP. More than 200 operators have already chosen to integrate with the Azure network through our ExpressRoute service, enabling enterprises and partners to link their corporate networks privately and securely to Azure services. We also provide additional routes to connect to the service through options as varied as satellite connectivity and TV White Space spectrum.
Edge platform
This reach helps us to supply operators with cloud computing options that meet the customer wherever those capabilities are needed: at the enterprise edge, the network edge, the network core, or in the cloud. The various form factors, optimized to support the location in which they are deployed, are supported by the Azure platform—providing virtual machine and container services with a common management framework, DevOps support, and security control.
Network functions
We believe in an open platform that leverages the strengths of our partners. Our solutions are a combination of virtualized and containerized services as composable functions, developed by us and by our Network Equipment Provider partners, to support operators’ services such as the Radio Access Network, Mobile Packet Core, Voice and Interconnect services, and other network functions.
Technology from Affirmed and Metaswitch Networks will provide services for Mobile Packet Core, Voice, and Interconnect services.
Cloud solutions and Azure IoT for operators
By exposing these services through the Azure platform, we can combine them with other Azure capabilities such as Azure Cognitive Services (used by more than 1 million developers processing more than 10 billion transaction per day), Azure Machine Learning, and Azure IoT, to bring the power of AI and automation to the delivery of network services. These capabilities, in concert with our partnerships with OSS and BSS providers, enables us to help operators streamline and simplify operations, create new services to monetize the network, and gain greater insights into customer behavior.
In IoT our primary focus is simplifying our solutions to accelerate what we can do together from the edge to the cloud. We’ve done so by creating a platform that provides simple and secure provisioning of applications and devices to Azure cloud solutions through Azure IoT Central, which is the fastest and easiest way to build IoT solutions at scale. IoT Central enables customers to provision an IoT app in seconds, customize it in hours, and go to production the same day. IoT Plug and Play dramatically simplifies all aspects of IoT device support and provides devices that “just work” with any solution and is the perfect complement to achieve speed and simplicity through IoT Central. Azure IoT Central also gives the Mobile Operator the opportunity to monetize more of the IoT solution and puts them in a position to be a re-seller of the IoT Central application platform through their own solutions. Learn more about using Azure IoT for operators here.
Cellular connectivity is increasingly important for IoT solutions and represents a vast and generational shift for mobile operators as the share of devices in market shifts towards the enterprise. We will continue our deep partnership with operators to enable fast and efficient app development and deployment, which is critical to success at the edge. This will help support scenarios such as asset tracking across industries, manufacturing and distribution of smart products, and responsive supply chains. It will also help support scenarios where things are geographically dispersed, such as smart city automation, utility monitoring, and precision agriculture.
Where we go next
Our early engagement with partners such as Telstra and Etisalat helped us shape this path. We joined the 5G Open Innovation Lab as the founding public cloud partner to accelerate enterprise startups and launch new innovations to foster new 5G use cases with even greater access to leading-edge networks. The Lab will create long-term, sustainable developer and commercial ecosystems that will accelerate the delivery of exciting new capabilities at the edge, including pervasive IoT intelligence and immersive mixed reality. And this is just the beginning. I invite you to learn more about our solutions and watch the series of videos we have curated for you.
“We have been thrust into remote work without a lot of the preparation and in some cases underlying infrastructure, data security, or underlying cloud platforms,” says Box CEO Aaron Levie. “What we’re finding, and certainly at least for the organizations that have had the ability to adapt successfully to this environment, is that there are better ways to get work done.”
Aaron Levie, CEO of Box, discusses how the pandemic has thrust companies into remote work and this will move enterprises toward a hybrid workplace:
We Have Been Thrust Into Remote Work
We have been thrust into remote work without a lot of the preparation and in some cases underlying infrastructure, data security, or underlying cloud platforms. What we’re finding, and certainly at least for the organizations that have had the ability to adapt successfully to this environment, is that there are better ways to get work done. Now that we’ve moved to this virtual way of working there are a lot of situations where we used to have to do business travel. Being able to quickly hop on a Webex or a Skype call or a Zoom session is actually much more efficient to be able to have that conversation.
We have a lot of situations that Box internally and with our customers where normally you might be collaborating with five or ten people in a meeting inside of a conference room. Now you can move that to a Slack channel and actually communicate with maybe 50 or 100 people on that same project. You’re actually building a much more inclusive organization with way more people that can be engaged and involved in your ultimate vision and what you’re executing on. We’re seeing actually some really positive ways of working in this environment.
The Future Is A Hybrid Workplace
Any tech company and any company globally really wants to get back to some version of normal. We certainly want offices to open up as quickly as possible. We want to make sure that we can see our colleagues in person. But I do think that there’s no going back from this new virtual way of being able to stay productive. The future is one of a hybrid workplace where you go into the office for some experiences and purposes and then you’re also going to be able to have much more flexibility and be able to work remotely. The digital workplace is what’s going to then bridge those two worlds together.
By and large, cost savings is not the main factor of why you’ve seen so much excitement around remote work or more workplace flexibility. If you can be just as productive from your laptop on a Slack channel and over a Zoom call but you could then be in any place that you desire as opposed to being in a 60 or 90-minute commute each way and paying way too much for real estate. For those of us that live in Silicon Valley, this is a very expensive real estate market. So if you could have better flexibility and be able to have a little bit more space and you can stay just as productive, wouldn’t that be a better way of working?
Lot’s Of Reasons Why Offices Will Still Exist
What companies are realizing is as they want to actually give that choice out to their employees. They can still run very productive organizations. We at Box have been able to drive as much innovation in this environment as we have in an office environment. We want to make sure that we’re creating that type of flexibility for employees. That being said, there are a lot of benefits to being able to work in an office with your colleagues.
For younger employees that are just integrating into the workplace for the first time you want to get to know your colleagues and you want to be able to be a part of maybe a more than just a business community. You may actually want to be able to build your business network through that experience. Also important is mentorship and being able to make sure that you’ve got more camaraderie. There are a lot of reasons why offices are still going to exist in the future. But digital technology is going to afford companies to have way greater flexibility no matter which route they choose.
“There’s a real recognition that digitization and transformation are not doing what you used to do in the physical world,” says Publicis Sapient CEO Nigel Vaz. “Digitizing that and translating that is essentially the journey of going from being a caterpillar to a butterfly. Real transformation. How do you reimagine yourself in the context of a world that now is entirely digital? Customers are thinking very actively about how they actually create products and services that essentially create value for customers entirely digitally.”
Nigel Vaz, CEO of Publicis Sapient, discusses how the current pandemic has forced organizations to reimagine their businesses digitally. Nigel works closely with clients such as McDonald’s, Nationwide, and Unilever to deliver transformative experiences and business models:
https://youtu.be/VOKcTLcxHXw
Businesses Being Reimagined In A World That Is Now Entirely Digital
Digitization Has Become Existential For Business
I think Digital has always been important for business. Now more than ever what’s becoming very clear is this has gone from being something that’s important to something that’s existential. How do you support customers to make orders entirely online when your stores are closed? How do you create mashups with other partners to be able to facilitate deliveries when your own deliveries don’t suffice? How do you try to create experiences online through self-service that minimize the impact of people calling your call centers?
All of these things are things clients are facing on a regular basis. Most CEOs I’m in conversation with are acknowledging the fact that this has now got to be a priority, that they have to be ready more so than they’ve ever thought before.
3 Key Things Happening With the Transformation
There are three things happening here in terms of transformation. The first is the change in human behavior where I think there’s a recognizable shift now. We’re seeing significant accounts of over-70s, for example, ordering from retail and ramping that up. We’re seeing a big shift in institutions like schools and educational institutions, which historically had not thought about transformation as particularly applicable to them.
We’re also seeing a shift in industries like leisure looking at creating virtual experiences since physical experiences are essentially restricted and people can’t use them. The human behavior shift is translating to big investments in technology and technology platforms that enable this.
Businesses Being Reimagined In A World That Is Now Entirely Digital
Then lastly, new business models. There’s a real recognition that digitization and transformation are not doing what you used to do in the physical world. Digitizing that and translating that is essentially the journey of going from being a caterpillar to a butterfly. Real transformation. How do you reimagine yourself in the context of a world that now is entirely digital?
Customers are thinking very actively about how they actually create products and services that essentially create value for customers entirely digitally. There are plenty of examples in this from telemedicine and from the educational space with new courses coming online which can scale faster than traditional courses limited by a classroom and a professor.
“Every company is going to need a Data Czar, a data leader, a Chief Data Officer, over time,” says Splunk CEO Doug Merritt. “One of the big points of digitization is you now get a bunch of data that you didn’t have before so that you can actually begin to act in real-time on these different signals. That needs somebody that understands data and guides data across an organization.”
Doug Merritt, CEO of Splunk, discusses how big data has spurred the need for every enterprise company is ultimately going to need a Data Czar:
Big Data Drives Society Forward
Almost everything in the world has got some type of WiFi or network connection so there is a ton of data that is flying around the stratosphere at this moment. The difficulty is being able to capture that data and begin to make sense of it so you can serve customers more effectively, reduce costs, optimize your supply chain, and hear signals from your employee base.
All the different capabilities that if you understand big data, and cloud certainly helps dramatically there, you can actually drive society forward. It’s what we call turning data into action, bringing data to every question, every decision, and ultimately into every action, so that we can keep our organizations and our society moving forward.
Every Company Needs A Data Czar
Every company is going to need a data Czar, a data leader, a Chief Data Officer, over time. One of the big points of digitization is you now get a bunch of data that you didn’t have before so that you can actually begin to act in real-time on these different signals. That needs somebody that understands data and guides data across an organization.
That pull from corporations is what pulls companies like Splunk and others forward to help the technical population within those organizations to actually make sense of data. We also help the sales, marketing, and finance departments, and any people in organizations that are leaning more heavily on data gathering and data science in making sense there.
Splunk CEO Doug Merritt: Every Company Needs A Data Czar
“There are huge benefits to collaboration,” says Proofpoint CEO Gary Steele. “However, I do believe fundamentally that this work from home economy that we’re living in is going to change the face of work. You’re going to see a blend. Security leaders and organizations are going to need to figure out how do you defend people when they are sitting at home working from their couch just doing their job and doing it well?”
New AI/ML Innovations Block Bogus Emails
One of the big investments for us in this people-centric framework is to help organizations protect the data that people create. We’re giving companies more visibility and more controls to ensure that when you’re sitting in front of your couch and working from home that you’re not treating data in a way that’s going to ultimately hurt the company. For those individuals that are doing something malicious, we’re going to help companies find those malicious individuals.
We need to block (bogus emails that are supposedly from a trusted source) so that an individual doesn’t actually receive that message (in the first place). That is an impersonation. That’s how we’re applying new innovations in the AI/ML (artificial intelligence & machine learning) space to be able to identify those very sophisticated attacks and block them so that a poor user is not trying to figure out (if it is really) the CEO that asked me to do something that they shouldn’t do.
Proofpoint CEO Gary Steele: Working From Home Changes Face Of Work
