Wednesday, July 31, 2019

Amazon acquires flash-based cloud storage startup E8 Storage

Amazon has reportedly acquired Isreali storage tech startup E8 Storage, according to Reuters, CNBC and Globes. The acquisition will bring the team and technology from E8 in to Amazon’s existing Amazon Web Services center in Tel Aviv, per reports.

E8 Storage’s particular focus was on building storage hardware that employs flash-based memory to deliver faster performance than competing offerings, according to its own claims. How exactly AWS intends to use the company’s talent or assets isn’t yet known, and Amazon did not respond to a request for comment in time for publication.

AWS acquisitions this year include TSO Logic, a Vancouver-based startup that optimizes data center workload operating efficiency, and Israel-based CloudEndure, which provides data recovery services in the event of a disaster.



from Amazon – TechCrunch https://techcrunch.com/2019/07/31/amazon-acquires-flash-based-cloud-storage-startup-e8-storage/

Amazon develops a new way to help Alexa answer complex questions

Amazon’s Alexa AI team had developed a new training method for the virtual assistant that could greatly improve its ability to handle tricky questions. In a blog post, team lead Abdalghani Abujabal details the new method, which combines both text-based search and a custom-built knowledge graph, two methods which normally compete.

Abujabal suggests the following scenario: You ask Alexa “Which Nolan films won an Oscar but missed a Golden Globe?” The answer to this question asks a lot – you need to identify that the ‘Nolan’ referred to is director Christopher Nolan, figure out which movie he’s directed (even his role as ‘director’ for the resulting list needs to be inferred) and then cross-reference those which have one an Oscar with a list of those which have also won a Golden Globe, and identify those that are present on List A but not on List B.

Amazon’s method to provide a better answer to this difficult question opts for first gathering the most complete data set possible, and then automatically building a curated knowledge graph out of an initially high volume and very noisy (ie., filled with unnecessary data) data set using algorithms that the research team custom-created to deal with cutting the chaff and arriving at mostly meaningful results.

The system devised by Amazon is actually relatively simple on its face – or rather, it combines two relatively simple methods, including a basic web search, that essentially just crawls the web for results using the full text of the question asked – just like if you’d typed “Which Nolan films won an Oscar but missed a Golden Globe?” into Google, for instance (researchers used multiple web engines in reality). The system then grabs the top ten ranked pages and breaks them down into identified names and grammar units.

On top of that resulting data set, Alexa AI’s approach then looks for clues in the structure of sentences to flag and weight significant sentences in the top texts, like “Nolan directed Inception,” and discounts the rest. This builds the ad-hoc knowledge graph, which they then asses to identify “cornerstones” within. A cornerstone is basically dead ringers for words in the original search string (ie., “Which Nolan films won an Oscar but missed a Golden Globe?”) and take those out, focusing instead of looking at the information in between as the source fo the actual answers to that question.

With some final weighting and sorting of the remaining data, the algorithm correctly returns “Inception” as the answer, and Amazon’s team found that this method actually beat out state-of-the-art approaches that were much more involved but that focused on just text search, or just building a curated knowledge graph in isolation. Still, they think they can tweak their approach to be even better, which is good news for Alexa users hoping their smart speakers will be able to settle heated debates about advanced Trival Pursuit questions.



from Amazon – TechCrunch https://techcrunch.com/2019/07/31/amazon-develops-a-new-way-to-help-alexa-answer-complex-questions/

Why AWS is building tiny AI race cars to teach machine learning

The AWS DeepRacer is an almost toylike 1/18th scale race car. It comes with all of the sensors and software tools to help developers build machine learning models to drive the car around a course — or really do anything else they want it to do. The $399 DeepRacer launched at AWS’s massive re:Invent show in late 2018.

At the time, it seemed like a bit of a gimmick, but AWS has put a lot of its weight behind it and is currently running a DeepRacer league at its various events around the world. At these events, developers can pit their models against each other and learn more about building a specific kind of machine learning model in the process.

Why bother, though? It’s not like DeepRacer cars are likely to add to AWS’s bottom line anytime soon. DeepRacer, however, is part of a line of hardware products from AWS that started with DeepLens, a smart camera for developers.

“It really comes from the same place,” AWS general manager for Artificial Intelligence and Machine Learning marketing Ryan Gavin told me. “When you think about the stimulus for something like DeepLens, it was really about how do we put machine learning into the hands of every developer and data scientist. That’s our mission and we’re very consistent about that.”



from Amazon – TechCrunch https://techcrunch.com/2019/07/31/why-aws-is-building-tiny-ai-race-cars-to-teach-machine-learning/

The problem with sarcasm

“Well, that was super helpful.”

Was it? Or are you trying to be sarcastic?

Because if it was helpful, you could simply write, “thank you, that was helpful.”

On the other hand, if you’re trying to express disappointment or displeasure, you could write, “I’m disappointed that you weren’t able to contribute more here. We were really looking forward to your input.”

The problem with sarcasm is that the level of displeasure is hidden. You might come across as snarky when you don’t mean to, or, the snarkiness you were sending might not land.

My new rule of thumb is to always assume goodwill and ignore any perceived sarcasm. Call it a Type II sarcasm-detection error.

It’s hard to imagine a situation where sarcasm is the most effective way to make your point.

       


from Seth Godin's Blog on marketing, tribes and respect https://feeds.feedblitz.com/~/605078514/0/sethsblog~The-problem-with-sarcasm/

Tuesday, July 30, 2019

AWS’ new text-to-speech engine sounds like a newscaster

Apple, Microsoft and Google to test new standard for patient access to digital health data

A newly released data model and draft implementation guide for providing digital access to historical health insurance claims data directly to patients could mean you have better access to this info from the devices you use everyday. Called the CARIN Blue Button API, it’s a new model developed by private sector partners including consumer organizations, insurance providers, digital health app developers and more, this new draft implementation will be in testing beginning this year, with participating companies including a number of different state-specific BlueCross/BlueShield providers, the State of Washington – and Apple, Google and Microsoft.

The news was announced today at the White House Blue Button Developers Conference in Washington D.C., and builds on the work done last year by the Centers for Medicare and Medicaid Services to launch Blue Button 2.0, a new standard aimed at providing Medicare beneficiaries in the U.S. access to all of their historical claims information in one place from whatever application they choose to use.

All of the organizations participating in the draft testing process will perform “real-world testing” of the CARIN model developed by the multi-disciplinary working group, with the aim of preparing for a broad, product launch of the data standard in 2020.

Seeing Apple, Google and Microsoft on that list along with a significant number of health care providers is a good sign, since it should mean more data portability and choice when it comes to how you access your own patient information, rather than it being decided on a platform-by-platform basis.

Apple already built a Health Records section into its own native Health app in iOS at the beginning of last year, and while it works with standards sometimes adopted by health care providers, it’s far from a universal, truly interoperable health care history feature on its own. Apple has been building partnerships with agencies and providers including Veterans’ Affairs and Aetna to flesh out its personal health data offering for users, and Microsoft has its own health records offering called HealthVault.



from Microsoft – TechCrunch https://techcrunch.com/2019/07/30/apple-microsoft-and-google-to-test-new-standard-for-patient-access-to-digital-health-data/

DigitalOcean gets a new CEO and CFO

DigitalOcean, the cloud infrastructure service that made a name for itself by focusing on low-cost hosting options in its early days, today announced that it has appointed former SendGrid COO and CFO Yancey Spruill as its new CEO and former EnerNOC CFO Bill Sorenson as its new CFO. Spruill will replace Mark Templeton, who only joined the company a little more than a year ago and who had announced his decision to step down for personal reasons in May of this year.

DigitalOcean is a brand I’ve followed and admired for a while — the leadership team has done a tremendous job building out the products, services and, most importantly, a community, that puts developer needs first,” said Spruill in today’s announcement. “We have a multi-billion dollar revenue opportunity in front of us and I’m looking forward to working closely with our strong leadership team to build upon the current strategy to drive DigitalOcean to the company’s full potential.”

Spruill das have a lot of experience, given that he was in CxO positions at SendGrid through both its IPO in 2017 and its sales to Twilio in 2019. He also previously held the CFO role at DigitalGlobe, which he also guided to an IPO.

In his announcement, Spruill notes that he expects DigitalOcean to focus on its core business, which currently has about 500,000 users (though it’s unclear how many of those are active, paying users). “My aspiration is for us to continue to provide everything you love about DO now, but to also enhance our offerings in a way that is meaningful, strategic and most helpful for you over time,” he writes.

Spruill’s history as CFO includes its fair share of IPOs and sales, but so does Sorenson’s. As CFO at EnerNOC, he guided that company to a sale to investor Enel Group. Before that, he led business intelligence firm Qlikto an IPO.

It’s not unusual for incoming CEOs and CFO’s to have this kind of experience, but it does make you wonder what DigitalOcean’s future holds in store. The company isn’t as hyped as it once was and while it still offers one of the best user experiences for developers, it remains a relatively small player in the overall cloud game. That’s a growing market, but the large companies — the ones that bring in the majority of revenue — are looking to Amazon, Microsoft and Google for their cloud infrastructure. Even a small piece of the overall cloud pie can be quite lucrative, but I think DigitalOcean’s ambitions go beyond that.



from Amazon – TechCrunch https://techcrunch.com/2019/07/30/digitalocean-gets-a-new-ceo-and-cfo/

How retailers can survive the Amazon era

Wall St analyst Laura Martin on the fate of Netflix, breaking up Google, EU regulation, and a decade of more money for Hollywood

The rise of streaming video platforms like Netflix and Amazon Prime has upended traditional power balances in Hollywood and is reorganizing the way we consume films and TV series as consumers.

Following her talk at the recent Banff World Media Festival in Canada, I interviewed Laura Martin, the senior analyst covering entertainment and internet stocks at leading investment bank Needham & Company, to sort out how the pieces are moving in this chess game between content creators, streaming services, consumers, and government regulators.

We discuss why Netflix is still at risk of a downfall, the effect of EU content quotas, why Martin thinks regulators should break up Google, and why video streaming and game streaming are likely to merge into the same subscription products.

Here is the transcript of our discussion, edited for length and clarity:


Eric Peckham: There’s an optimistic case that the rise of online video streaming is a win for both consumers and content creators because it creates a vast landscape of content platforms. Onstage in Banff, you argued that the number of content platforms (and thus the number of content buyers) will in fact shrink. Why do you see it going that direction?

Laura Martin: There are 4,000 video apps on the Roku platform today (and similarly on Samsung and on Amazon Fire). What you’ll see is a consolidation in the industry as we get big players like the Walt Disney Company, AT&T, and Apple coming into the DTC business with big, deep pockets. Although we have more buyers of content today, it’s driving prices up.

It is likely that the big players are just battling out between themselves, putting smaller players out of business. Over a 10-year time frame, I expect just three or four winners, and that will bring more discipline back into the financial aspects of the business.

Peckham: What will separate the winners from the losers here?



from Amazon – TechCrunch https://techcrunch.com/2019/07/30/laura-martin-interview/

NakedPoppy launches curated beauty marketplace for wellness junkies

NakedPoppy co-founders Jaleh Bisharat and Kimberly Shenk are an impressive duo. Bisharat, the startup’s chief executive officer, is a commanding presence and a bona fide marketing savant. The perfect compliment to Shenk, a reticent and data-focused chief product officer.

Together they’re building a cosmetics startup, NakedPoppy, where people can purchase high-quality “clean” makeup, or sustainable, ethically-made and cruelty-free products produced without harmful chemicals. It launches today with $4 million in venture capital backing from top investors, including Cowboy Ventures (the seed-stage fund led by Aileen Lee), Felicis Ventures, Khosla Ventures, Maveron, Polaris Ventures and Slow Ventures.

“Conventional makeup is considered hazardous waste by the EPA,” Bisharat tells TechCrunch. “You can look better and go clean.”

But NakedPoppy isn’t just another website for buying makeup. Like all companies today, it’s a tech company. NakedPoppy’s patent-pending personalization algorithm helps customers quickly find makeup that matches or complements their skin tone. To do this, customers are asked to complete a three-minute assessment and submit a photo of their wrist, which is used to pinpoint their base skin color.

NakedPoppy assessment

“I’m not the person that is up to trends or is keeping up with the YouTube stars,”  NakedPoppy’s product chief Shenk tells TechCrunch. “When I walk into Sephora my stomach drops … I am the kind of woman that wants to set it and forget it. Just give me the right thing and let’s move on.”

Bisharat adds that NakedPoppy targets the busy woman: “The one for whom it’s not entertainment to go shopping for makeup.”

The NakedPoppy team hopes its algorithm expedites the makeup shopping process for those who view the task as a chore not a hobby. Accounting for skin type, skin color, skin undertone, age, eye color, hair color, allergies, sensitivities and more, the startup presents each customer a filtered and tailored list of the 400 items its carries, ranging from lipsticks to foundation to blush and more. Cosmetic chemists screen all NakedPoppy products to ensure they were made with only clean ingredients.

Alongside its official launch, NakedPoppy is announcing its debut original product: Liquid eyeliner. The product was screened and tested by a number of clean beauty experts and even a VC: “This is a hero product, no doubt about it,” BBG Ventures’ managing partner Susan Lyne said in a statement. Lyne, of course, is a NakedPoppy angel investor. “Most eyeliners start drying out after a few weeks and get harder to apply. This one is still as supple as the day I got it. It looks natural, lasts all day and washes off easily with soap. It’s pretty perfect.”

For the record, I tried out the NakedPoppy eyeliner too and can attest to its greatness.

NakedPoppy founders

NakedPoppy co-founders Jaleh Bisharat (CEO, left) and Kimberly Shenk (CPO, right).

The women behind NakedPoppy, as I alluded to earlier, know what they’re doing. In fact, I’d go as far as to say they could’ve paired their marketing and data science expertise to build just about anything. Makeup, however, was their shared passion.

“For us, it’s a personal passion and an area of information asymmetry, like most people know that with the food you eat, you should try to eat organic or as healthy as you can, but you’d be surprised how few women — they just assume the FDA protects them,” Bisharat said. “The idea is to educate the world and help women move toward new solutions.”

Bisharat got her start in marketing two decades ago. Shortly after the e-commerce giant went public, she served as the vice president of marketing at Amazon. A career peak for many, Bisharat went on to lead marketing efforts at OpenTable, Jawbone, UpWork and, most recently, Eventbrite, where she met Shenk.

Before moving into the private sector, Shenk got her start as a data scientist in the U.S. Air Force, ultimately ending up as the director of data science at the now-public ticketing and events business, Eventbrite.

10 NakedPoppy Pouch

Bisharat and Shenk remained mum on what marketing tactics they’ll deploy to capture the attention of potential customers. Will they partner with social media influencers to spread the word? Double down on Instagram ads? Open brick-and-mortar shops? They wouldn’t say. Additional original products are definitely in the works, though, as is a foray into skincare and ultimately, a full-fledged dive into all self-care products.

The hope is to making buying clean makeup easy. Historically, the big makeup brands have been owned and operated by one of a dozen or so large companies dominating the space. Increasingly, however, direct-to-consumer brands and startups, most notably Glossier, have attracted customers that prioritize ease-of-access.

As the beauty industry adjusts, an influx of digital-first upstarts, NakedPoppy included, will be poised to steal market share from the long-reigning giants. Perhaps NakedPoppy’s push toward transparency in ingredients and production will encourage the big brands to do the same.



from Amazon – TechCrunch https://techcrunch.com/2019/07/30/nakedpoppy/

Real estate platform Compass raises another $370M on a $6.4B valuation en route to an IPO

The real estate market regularly goes through ups and downs, but today comes big news for a startup in the space that has built a platform that it believes can help all players in it — buyers, sellers, and those who help with the buying and selling — no matter what stage of the cycle we happen to be in.

Compass — a company that has built a three-sided marketplace for the industry, along with a wide set of algorithms to help make it work — has raised a $370 million round of funding, money that it plans to use to continue expanding to more markets, as well as for more tech and product development. Sources tell me that it’s also now eyeing up an IPO, likely sometime in the next 24 months.

“From day one we knew, when we had just a small amount of people at the company, we had a very clear focus,” co-founder and chairman Ori Allon said in an interview. “We wanted to bring more tech and data and transparency to real estate, and i think it’s paid off.”

Based out of New York, Compass earlier this year established an engineering hub in Seattle run by the former CTO of AI for Microsoft, Joseph Sirosh. It’s continuing to hire there and elsewhere (alongside also making acqui-hires for talent).

The Series G funding — which brings the total raised by Compass to $1.5 billion — is coming in at a $6.4 billion valuation, a huge uptick for the company compared to its $4.4 billion valuation less than a year ago. Part of the reason for that has been the company’s massive growth: in the last quarter, its revenues were up 250% compared to Q2 2018.

The investor list for this latest round includes previous investors Canada Pension Plan Investment Board (CPPIB), Dragoneer Investment Group, and SoftBank Vision Fund. Other backers since it was first founded in 2012 have included Founders Fund, the Qatar Investment Authority (a construction and real estate giant), Fidelity and others.

Compass

The company was co-founded by Ori Allon and Robert Reffkin — respectively the chairman and CEO, pictured here on the right and left of COO Maelle Gavet. The company first caught my eye because of Allon. An engineer by training, he has a string of notable prior successes in the field of search to his name (his two previous startups were sold to Google and Twitter, which used them as the basis of large areas of their search and discovery algorithms).

In this latest entrepreneurial foray, Allon’s vision of using machine learning algorithms to improve decisions that humans make has been tailored to the specific vertical of real estate.

The platform is not a mere marketplace to connect buyers to real estate agents to sellers, but an engine that helps figure out pricing, timing for sales, how to stage homes (and more recently how to improve them with actual building work by way of Compass Concierge) to get the best prices and best sales.

It also helps real estate agents manage their time and their customers (by way of an acquisition it made of CRM platform Contactually earlier this year). Starting with high-end homes for private individuals, Compass has expanded to commercial real estate and a much wider set of price brackets.

There is a wide opportunity for vertical search businesses at the moment. People want more accurate and targeted information to make purchasing decisions; and companies that are in the business of providing information (and selling things) are keen for better platforms to bring in online visitors and increase their conversions.

I understand that this has led to Compass getting approached for acquisitions, but that is not in the blueprint for this real estate startup: the longer term plan will be to take the company public, likely in the next 24 months.

“It has been incredible to see the growth of our Product & Engineering team, including the addition of Joseph Sirosh as CTO,” said Compass Founder & Executive Chairman Ori Allon, in a statement. “We are excited to partner with new investors, and deepen our relationship with our existing partners to accelerate our growth and further our technology advancements.”



from Microsoft – TechCrunch https://techcrunch.com/2019/07/30/real-estate-platform-compass-raises-another-370m-on-a-6-4b-valuation-en-route-to-an-ipo/

AWS follows Microsoft into the Middle East, opening new region in Bahrain

AWS, Amazon’s cloud arm, announced today that it has opened a Middle East Region in Bahrain. The Middle East is an emerging market for cloud providers and is this new region is part of a continuing expansion for the cloud giant. Today’s news comes on the heels of Microsoft announcing its own Middle East data centers in Abu Dhabi and Dubai just last month.

As AWS CEO Andy Jassy pointed out last year at AWS re:Invent, the cloud is at different stages in different parts of the world and Amazon obviously wants to be a part of the emerging areas to extend its lead in the cloud infrastructure market.

“I think we’re just in the early stages of enterprise and public sector adoption in the U.S. Outside the U.S. I would say we are 12-36 months behind. So there are a lot of mainstream enterprises that are just now starting to plan their approach to the cloud,” Jassy told the AWS re:Invent audience last year.

Amazon sees this expansion as helping companies in the Middle East, much in the same way it has in the U.S., Europe and other parts of the world, to digitally transform through the use of cloud services.

The new region in the Middle East is composed of three Availability Zones. That’s AWS lingo for a distinct geographic area that holds at least one data center. “Each Availability Zone has independent power, cooling and physical security and is connected via redundant, ultra-low-latency networks,” the company explained in a statement.

Amazon reports that this is part of a continuing expansion. It also announced plans to open nine additional availability zones in Indonesia, Italy and South Africa in coming years.



from Amazon – TechCrunch https://techcrunch.com/2019/07/30/aws-follows-microsoft-into-the-middle-east-opening-new-region-in-bahrain/

The perfect mustard

If you ask for mustard at a French bistro, you’ll get a strong Dijon, handmade in a little village three hundred kilometres away.

If you ask for mustard at a game at Fenway, apparently you’ll get Gulden’s.

Within a rounding error, all mustard costs the same. It’s not about the price. It’s about coherence with the story. When a Marriott brings you the little sealed bottle of fake dijon from Heinz, they’re not offering you mustard, they’re sending a signal about what they think is fancy.

And at the ball game, the yellow mustard in a giant pump tells a story as well.

Is one better than the other? It’s a matter of taste and context. Of course, I have a favorite mustard and a narrative about what’s appropriate in a given setting, and so does just about everyone else I know. But favorite is different than ‘right’. There’s no absolute scale. How can a mustard be yuppie? Pretentious? Down to earth? It’s simply a condiment.

And yes, there’s a mustard analogy in everything you do. In how you shake hands, in the typeface you use in your presentation (and whether you call it a ‘font’), in the volume you choose for your voice when in conversation.

Being in sync is a choice.

       


from Seth Godin's Blog on marketing, tribes and respect https://feeds.feedblitz.com/~/605037550/0/sethsblog~The-perfect-mustard/

Monday, July 29, 2019

With Y Combinator’s seal of approval, MyPetrolPump raises $1.6 million for its car refueling business

Before even pitching on stage at Y Combinator, href="https://mypetrolpump.com/"> MyPetrolPump, the Indian startup with a car refueling business has managed to snag $1.6 million in its seed financing.

The business, which is similar to startups in the U.S. like Filld, Yoshi, and Booster Fuels, took ten months to design and receive approvals for its proprietary refueling trucks that can withstand the unique stresses of providing logistics services in India.

Together with co-founder Nabin Roy, a serial startup entrepreneur, MyPetrolPump co-founder and chief executive Ashish Gupta pooled together $150,000 to build the company’s first two refuelers and launch the business.

MyPetrolPump began operating out of Bangalore in 2017 working with a manufacturing partner to make the 20-30 refuelers that the company expects it will need to roll out its initial services. However, demand is far outstripping supply, according to Gupta.

“We would need hundreds of them to fulfill the demand,” Gupta says. In fact the company is already developing a licensing strategy that would see it franchise out the construction of the refueling vehicles and regional management of the business across multiple geographies. 

Bootstrapped until this $1.6 million financing, MyPetrolPump already has five refueling vehicles in its fleet and counts 2,000 customers already on its ledger.

These are companies like Amazon and Zoomcar, which both have massive fleets of vehicles that need refueling. Already the company has delivered 5 million liters of fuel with drivers working 12-hour-per-day shifts, Gupta says.

While services like MyPetrolPump have cropped up in the U.S. as a matter of convenience, in the Indian context, the company’s offering are more of a necessity, says Gupta.

“In the Indian context, there’s pilferage of fuel,” says Gupta. Bus drivers collude with gas station operators to skim money off the top of the order, charging for fifty liters of fuel but only getting 40 liters pumped in. Another problem that Gupta says is common is the adulteration of fuel with additives that can degrade the engine of a vehicle.

There’s also the environmental benefit of not having to go all over to refill a vehicle, saving fuel costs by filling up multiple vehicles with a .  single trip from a refueling vehicle out to a location with a fleet of existing vehicles.

The company estimates it can offset 1 million tons of carbon in a year — and provide over 300 billion liters of fuel. The model has taken off in other geographies as well. There’s Toplivo v Bak in Russia (which was acquired by Yandex), Gaston in Paris and Indonesia’s everything mobility company, Gojek, whose offerings also include refueling services.

And Gupta is preparing for the future as well. If the world moves to electrification and electric vehicles, the entrepreneur says his company can handle that transition as well.

We are delivering a last mile fuel delivery system,” says Gupta. “If tomorrow hydrogen becomes the dominant fuel we will do that… If there is electricity we will do that. What we are building is the convenience of last mile delivery to energy at the doorstep.”



from Amazon – TechCrunch https://techcrunch.com/2019/07/29/with-y-combinators-seal-of-approval-mypetrolpump-raises-1-6-million-for-its-car-refueling-business/

A guide to Virtual Beings and how they impact our world

Money from big tech companies and top VC firms is flowing into the nascent “virtual beings” space. Mixing the opportunities presented by conversational AI, generative adversarial networks, photorealistic graphics, and creative development of fictional characters, “virtual beings” envisions a near-future where characters (with personalities) that look and/or sound exactly like humans are part of our day-to-day interactions.

Last week in San Francisco, entrepreneurs, researchers, and investors convened for the first Virtual Beings Summit, where organizer and Fable Studio CEO Edward Saatchi announced a grant program. Corporates like Amazon, Apple, Google, and Microsoft are pouring resources into conversational AI technology, chip-maker Nvidia and game engines Unreal and Unity are advancing real-time ray tracing for photorealistic graphics, and in my survey of media VCs one of the most common interests was “virtual influencers”.

The term “virtual beings” gets used as a catch-all categorization of activities that overlap here. There are really three separate fields getting conflated though:

  1. Virtual Companions
  2. Humanoid Character Creation
  3. Virtual Influencers

These can overlap — there are humanoid virtual influencers for example — but they represent separate challenges, separate business opportunities, and separate societal concerns. Here’s a look at these fields, including examples from the Virtual Beings Summit, and how they collectively comprise this concept of virtual beings:

Virtual companions

Virtual companions are conversational AI that build a unique 1-to-1 relationship with us, whether to provide friendship or utility. A virtual companion has personality, gauges the personality of the user, retains memory of prior conversations, and uses all that to converse with humans like a fellow human would. They seem to exist as their own being even if we rationally understand they are not.

Virtual companions can exist across 4 formats:

  1. Physical presence (Robotics)
  2. Interactive visual media (social media, gaming, AR/VR)
  3. Text-based messaging
  4. Interactive voice

While pop culture depictions of this include Her and Ex Machina, nascent real-world examples are virtual friend bots like Hugging Face and Replika as well as voice assistants like Amazon’s Alexa and Apple’s Siri. The products currently on the market aren’t yet sophisticated conversationalists or adept at engaging with us as emotional creatures but they may not be far off from that.



from Amazon – TechCrunch https://techcrunch.com/2019/07/29/a-guide-to-virtual-beings/

A guide to Virtual Beings and how they impact our world

Money from big tech companies and top VC firms is flowing into the nascent “virtual beings” space. Mixing the opportunities presented by conversational AI, generative adversarial networks, photorealistic graphics, and creative development of fictional characters, “virtual beings” envisions a near-future where characters (with personalities) that look and/or sound exactly like humans are part of our day-to-day interactions.

Last week in San Francisco, entrepreneurs, researchers, and investors convened for the first Virtual Beings Summit, where organizer and Fable Studio CEO Edward Saatchi announced a grant program. Corporates like Amazon, Apple, Google, and Microsoft are pouring resources into conversational AI technology, chip-maker Nvidia and game engines Unreal and Unity are advancing real-time ray tracing for photorealistic graphics, and in my survey of media VCs one of the most common interests was “virtual influencers”.

The term “virtual beings” gets used as a catch-all categorization of activities that overlap here. There are really three separate fields getting conflated though:

  1. Virtual Companions
  2. Humanoid Character Creation
  3. Virtual Influencers

These can overlap — there are humanoid virtual influencers for example — but they represent separate challenges, separate business opportunities, and separate societal concerns. Here’s a look at these fields, including examples from the Virtual Beings Summit, and how they collectively comprise this concept of virtual beings:

Virtual companions

Virtual companions are conversational AI that build a unique 1-to-1 relationship with us, whether to provide friendship or utility. A virtual companion has personality, gauges the personality of the user, retains memory of prior conversations, and uses all that to converse with humans like a fellow human would. They seem to exist as their own being even if we rationally understand they are not.

Virtual companions can exist across 4 formats:

  1. Physical presence (Robotics)
  2. Interactive visual media (social media, gaming, AR/VR)
  3. Text-based messaging
  4. Interactive voice

While pop culture depictions of this include Her and Ex Machina, nascent real-world examples are virtual friend bots like Hugging Face and Replika as well as voice assistants like Amazon’s Alexa and Apple’s Siri. The products currently on the market aren’t yet sophisticated conversationalists or adept at engaging with us as emotional creatures but they may not be far off from that.



from Microsoft – TechCrunch https://techcrunch.com/2019/07/29/a-guide-to-virtual-beings/

Microsoft acquires data privacy and governance service BlueTalon

Microsoft today announced that it has acquired BlueTalon, a data privacy and governance service that helps enterprises set policies for how their employees can access their data. The service then enforces those policies across most popular data environments and provides tools for auditing policies and access, too.

Microsoft acquires data privacy and governance service BlueTalon

Neither Microsoft nor BlueTalon disclosed the financial details of the transaction. Ahead of today’s acquisition, BlueTalon had raised about $27.4 million, according to Crunchbase. Investors include Bloomberg Beta, Maverick Ventures, Signia Venture Partners and Standford’s StartX fund.

BlueTalon Policy Engine How it works

“The IP and talent acquired through BlueTalon brings a unique expertise at the apex of big data, security and governance,” writes Rohan Kumar, Microsoft’s corporate VP for Azure Data. “This acquisition will enhance our ability to empower enterprises across industries to digitally transform while ensuring right use of data with centralized data governance at scale through Azure.”

Unsurprisingly, the BlueTalon team will become part of the Azure Data Governance group, where the team will work on enhancing Microsoft’s capabilities around data privacy and governance. Microsoft already offers access and governance control tools for Azure, of course. As virtually all businesses become more data-centric, though, the need for centralized access controls that work across systems is only going to increase and new data privacy laws aren’t making this process easier.

“As we began exploring partnership opportunities with various hyperscale cloud providers to better serve our customers, Microsoft deeply impressed us,” BlueTalon CEO Eric Tilenius, who has clearly read his share of ‘our incredible journey‘ blog posts, explains in today’s announcement. “The Azure Data team was uniquely thoughtful and visionary when it came to data governance. We found them to be the perfect fit for us in both mission and culture. So when Microsoft asked us to join forces, we jumped at the opportunity.”



from Microsoft – TechCrunch https://techcrunch.com/2019/07/29/microsoft-acquires-data-privacy-and-governance-service-bluetalon/

The Exit: The acquisition charting Salesforce’s future

Before Tableau was the $15.7 billion key to Salesforce’s problems, it was a couple of founders arguing with a couple of venture capitalists over lunch about why its Series A valuation should be higher than $12 million pre-money.

Salesforce has generally been one to signify corporate strategy shifts through their acquisitions, so you can understand why the entire tech industry took notice when the cloud CRM giant announced its priciest acquisition ever last month.

The deal to acquire the Seattle-based data visualization powerhouse Tableau was substantial enough that Salesforce CEO Marc Benioff publicly announced it was turning Seattle into its second HQ. Tableau’s acquisition doesn’t just mean big things for Salesforce. With the deal taking place just days after Google announced it was paying $2.6 billion for Looker, the acquisition showcases just how intense the cloud wars are getting for the enterprise tech companies out to win it all.

The Exit is a new series at TechCrunch. It’s an exit interview of sorts with a VC who was in the right place at the right time but made the right call on an investment that paid off. [Have feedback? Shoot me an email at lucas@techcrunch.com]

Scott Sandell, a general partner at NEA (New Enterprise Associates) who has now been at the firm for 25 years, was one of those investors arguing with two of Tableau’s co-founders, Chris Stolte and Christian Chabot. Desperate to close the 2004 deal over their lunch meeting, he went on to agree to the Tableau founders’ demands of a higher $20 million valuation, though Sandell tells me it still feels like he got a pretty good deal.

NEA went on to invest further in subsequent rounds and went on to hold over 38% of the company at the time of its IPO in 2013 according to public financial docs.

I had a long chat with Sandell, who also invested in Salesforce, about the importance of the Tableau deal, his rise from associate to general partner at NEA, who he sees as the biggest challenger to Salesforce, and why he thinks scooter companies are “the worst business in the known universe.”

The interview has been edited for length and clarity. 


Lucas Matney: You’ve been at this investing thing for quite a while, but taking a trip down memory lane, how did you get into VC in the first place? 

Scott Sandell: The way I got into venture capital is a little bit of a circuitous route. I had an opportunity to get into venture capital coming out of Stanford Business School in 1992, but it wasn’t quite the right fit. And so I had an interest, but I didn’t have the right opportunity.



from Microsoft – TechCrunch https://techcrunch.com/2019/07/29/the-exit-the-acquisition-charting-salesforces-future/

Pivoting the education matrix

For the longest time, school has been organized around subjects. Fifth graders go to math class and then English class and then geography.

Mostly, those classes don’t teach what they say they teach. Sure, there are some facts, but mostly it’s the methods of instruction that are on offer. School usually has a different flavor than learning.

It turns out, the skills we need to use in life (and in school) aren’t subject specific. But we use those subjects to teach the skills we actually end up using. Everyone knows that the typical person doesn’t need binomials, but the argument is that problem-solving, etc, are totally worth learning and so we pretend to teach the subject when apparently, we’re teaching the skill.

Perhaps, instead of organizing school around data acquisition and regurgitation, we could identify what the skills are and separate them out, teaching domain knowledge in conjunction with the skill, not the other way around.

It turns out that the typical school spends most of its time on just one of those skills (obedience through comportment and regurgitation).

What would happen if we taught each skill separately?

Obedience
Management
Leadership/cooperation
Problem-solving
Mindfulness
Creativity
Analysis

Indeed, you are required to do all seven of these things in math class, but in what proportion? Is a kid who has trouble with obedience “bad at math” or is it that the obedience part of class got in the way of the analysis or problem-solving part of class instead?

It’s entirely possible for a kid to make it through 16 years of organized schooling with a solid B average and never do much more than do well on just one thing–remembering what’s on the test. We’ve failed when we’ve turned out someone with just one of the 7 skills.

What happens if we are clear what we’re doing and why? Because obedience isn’t the point of math or science, but sometimes it’s taught that way.

And then, when obedience session is over, we can find other ways to approach the work at hand, developing the other essential skills. A 45 minute Creativity class that uses algebra is going to feel very different from a Leadership class covering the same material.

Some kids spend a decade in the school sports system and learn leadership and management and creativity and analysis. And some learn nothing but how to follow the coach’s instructions and sit on the bench. This has nothing to do with sports (or geography or biology) and everything to do with what we decide we’re teaching in any given moment.

Is there a cognitive difference between solving a chemistry problem and solving a crossword puzzle? Not really. Getting good at solving–putting on your solving hat and finding the guts to use it–is a skill that gets buried under the avalanche that we call obedience.

“How’d you do in Creativity today, son?” or perhaps, “Wow, you got an A in Analysis–that’s going to open a lot of doors for you…”

Bureaucracies over-index for obedience. They do that out of self-preservation, and because it’s the easiest thing to sell to clients, funders and parents (and to measure). But since we’re currently overdoing that one (they do it far more in other countries, though), we end up getting confused about what it means to learn a subject area in a useful way and we definitely under-develop people on the other six skills.

My guess is that most parents and educators are afraid to even discuss the topic. More here.

       


from Seth Godin's Blog on marketing, tribes and respect https://feeds.feedblitz.com/~/604996580/0/sethsblog~Pivoting-the-education-matrix/

Sunday, July 28, 2019

Last-mile training and the future of work in an expanding gig economy

The future of work is so uncertain that perhaps the only possible job security exists for the person who can credibly claim to be an expert on the future of work.

Nevertheless, there are two trends purported experts are reasonably certain about: (1) continued growth in the number of jobs requiring substantive and sustained interaction with technology; and (2) continued rapid expansion of the gig economy.

This first future of work trend is evident today in America’s skills gap with 7 million unfilled jobs — many mid- or high-skill position requiring a range of digital and technology capabilities.

Amazon’s recent announcement that it will spend $700 million over the next six years to upskill 100,000 of its low-wage fulfillment center employees for better digital jobs within Amazon and elsewhere demonstrates an understanding that the private sector must take some responsibility for the requisite upskilling and retraining, as well as the importance of establishing pathways to these jobs that are faster and cheaper than the ones currently on offer from colleges and universities.

These pathways typically involve “last-mile training”, a combination of digital skills, specific industry or enterprise knowledge, and soft skills to make candidates job-ready from day one.

The second trend isn’t new; the gig economy has existed since the advent of the “Help Wanted” sign. But what’s powered the gig revolution is the shift from signs and classified ads to digital platforms and marketplaces that facilitate continued and repeated matching of gig and gig worker. These talent platforms have made it possible for companies and organizations to conceptualize and compartmentalize work as projects rather than full-time jobs, and for workers to earn a living by piecing together gigs.

Critics of the gig economy decry the lack of job security, healthcare and benefits, and rightly so. If it’s hard to make ends meet as a full-time employee making a near-minimum wage, it’s impossible to do so via a gig platform at a comparable low wage. But rather than fighting the onset of the gig economy, critics might achieve more by focusing on upskilling gig workers.

To date, conversations about pathways and upskilling have focused on full-time employment. In the workforce or skills gap vernacular, upskilled Amazon workers might leave the fulfillment center for a tech support job with Amazon or another company, but it’s always a full-time job. But how do these important concepts intersect with the rising gig economy?

GettyImages 924636730

Image via Getty Images / PeterSnow

Just as there are low-skill and high-skill jobs, there are gig platforms that require limited or low skills, and platforms that require a breadth of advanced skills. Gig platforms that can be classified as low-skill include Amazon’s Mechanical TurkTaskRabbitUber and Lyft, and Instawork (hospitality). There are also mid-tier platforms like Upwork that span a wide range of gigs. And then there are platforms like Gigster (app development), and Business Talent Group (consulting and entire management functions) that require the same skillset as the most lucrative, in-demand, full-time positions.

So just as Amazon is focused on last-mile training programs to upskill workers and create new pathways to better jobs, in the gig economy context, our focus should be on strategies and platforms that allow gig workers to move from lower-skill to higher-skill platforms i.e., pathways for Uber drivers to become Business Talent Group executives.

One high-skill gig platform has developed an innovative strategy to do exactly this. CreatorUp is a gig platform for digital video production that has built in a last-mile training on-ramp. CreatorUp offers low-cost or free last-mile training programs on its own and in conjunction with clients like YouTube and Google to upskill gig workers so they can be effective digital video producers on the CreatorUp platform.

CreatorUp’s programs are driven by client demand; because the company saw significant demand from clients for AR/VR video production, it launched a new AR/VR training track. Graduates of CreatorUp’s programs join the platform and are staffed on a wide range of productions that clients require to engage customers, suppliers, employees and/or to build their brands.

Screen Shot 2019 07 28 at 4.39.10 PM

The good news for CreatorUp and other high-skill gig platforms that begin to incorporate last-mile training is that investing in these pathways can start the flywheel that every successful talent marketplace requires. Clients only patronize talent marketplaces once there’s a critical mass of talent on the platform. So how do platforms attract talent? One way is to be first-to-market in a category. A second is to attract billions in venture capital. But a third might be to use last-mile training to create new talent.

CreatorUp believes its last-mile training programs have allowed it to grow a network that serves diverse client needs better than any other video production platform. For not only has last-mile training allowed CreatorUp to understand and certify the skills of talent on the platform, and therefore to meet the needs of more clients, it has also allowed CreatorUp to bid more competitively because newly trained talent is often willing to work for less.

Last-mile training has the potential to be a win-win for the gig economy. It’s a strategy that may allow gig platforms to scale, matching more talent with more clients. Meanwhile, by allowing workers to upskill from lower-tier gig platforms to higher skill platforms, it’s also the first gig economy solution for social mobility.



from Amazon – TechCrunch https://techcrunch.com/2019/07/28/last-mile-training-and-the-future-of-work-in-an-expanding-gig-economy/

Week in Review: Regulation boogaloo

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

Last week, I talked about how services like Instagram had moved beyond letting their algorithms take over the curation process as they tested minimizing key user metrics such as “like” counts on the platform.


John Taggart/Bloomberg via Getty Images

The big story

The big news stories this week intimately involved the government poking its head into the tech industry. What was clear between the two biggest stories, the DoJ approving the Sprint/T-Mobile merger and the FTC giving Facebook a $5 billion slap on the wrist, is that big tech has little to worry about its inertia being contained.

It seems the argument from Spring and T-Mobile that it was better to have three big telecom companies in the U.S. rather than two contenders and two pretenders, seems to have stuck. Similarly, Facebook seems to have done a worthy job of indicating that it will handle the complicated privacy stuff but that they’ll let the government orgs see what they’re up to.

Fundamentally, none of these orgs seem to want to harm the growth of these American tech companies and I have a tough time believing that perspective is going to magically get more toothy in some of these early antitrust investigations. The government might be making a more concerted effort to understand how these businesses are structured, but even focusing solely on something like the cloud businesses of Microsoft, Google and Amazon, I have little doubt that the government is going to spend an awfully long time in the observation phase.

The danger is erraticism and for that the worst government fear for tech isn’t a three-letter agency, it’s the Twitter ramblings of POTUS.

feedback -> @lucasmtny

Onto the rest of the week’s news.

Intel and Apple logos

(Photo: ALASTAIR PIKE,THOMAS SAMSON/AFP/Getty Images)

Trends of the week

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

  • Apple dropping $1 billion on Intel’s modem business
    Apple is snapping up a missing link in its in-house component production with the $1B purchase of most of Intel’s modem business. This follows a dramatic saga between Intel, Qualcomm and Apple over the past year, but Apple will be making its own smartphone modems the question is when they actually end up in new iPhones. Read more here.
  • Microsoft dropping $1 billion on OpenAI
    Microsoft announced this week that it is dumping $1 billion into Sam Altman’s OpenAI research group. The partnership is pretty major, but it’s just one of the interesting avenues Microsoft is using to ensure its Azure services gain notable customers. Read more here.
  • Galaxy Fold is coming back!
    After a very embarrassing soft launch, Samsung which managed to make it a several devices beyond the Note 7 before another garbage fire is trying its hand at the Galaxy Fold again and will be releasing it sometime in September. It seems like the carriers are a little dubious of the prospect and T-Mobile has already opted out of carrying it. Read more here.

darkened facebook logo

GAFA Gaffes [Facebook Edition!!]

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

  1. Facebook gets five:
    [Facebook settles with FTC: $5 billion and new privacy guarantees]
  2. FTC isn’t quite done with Facebook:
    [Facebook says it’s under antitrust investigation by the FTC]
  3. Facebook dismissed CA warnings:
    [Facebook ignored staff warnings about sketchy Cambridge Analytica in September 2015]
  4. Facebook left kids vulnerable:
    [Facebook fails to keep Messenger Kids safety promise]

Extra Crunch

Our premium subscription service had another week of interesting deep dives. This week, my colleague Danny spoke with some top VCs about why fintech startups have been raising massive amounts of cash and he seemed to walk away with some interesting impressions.

Why fintech VC mega rounds have become so common

“…The biggest challenge that has faced fintech companies for years — really, the industry’s consistent Achilles’ heel — is the cost of acquiring a customer. Financial customer relationships are incredibly valuable, and the cost of acquiring a user for any product is among the most expensive in every major channel.

And those costs are going up…”

Here are some of our other top reads for premium subscribers.

We’re excited to announce The Station, a new TechCrunch newsletter all about mobility. Each week, in addition to curating the biggest transportation news, Kirsten Korosec will provide analysis, original reporting and insider tips. Sign up here to get The Station in your inbox beginning in August.



from Microsoft – TechCrunch https://techcrunch.com/2019/07/28/week-in-review-antitrust-boogaloo/

People don’t change

(Unless they want to)

Humans are unique in their ability to willingly change. We can change our attitude, our appearance and our skillset.

But only when we want to.

The hard part, then, isn’t the changing it.

It’s the wanting it.

       


from Seth Godin's Blog on marketing, tribes and respect https://feeds.feedblitz.com/~/604968136/0/sethsblog~People-dont-change/