Start up: Nest’s cuckoo, TayAI gets shut up, Pebble cuts staff, how mobile games rely on whales, and more

Cat

Cat parasites could make humans aggressive and clumsy. Honest. Photo by chaosphoenx on Flickr.

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A selection of 11 links for you. Use them wisely. I’m charlesarthur on Twitter. Observations and links welcome.

Inside Tony Fadell’s struggle to build Nest » The Information

Reed Albergotti on the wrangling between Nest and Dropcam, which Google bought for $555m and then folded into Nest:

»In one meeting, [Dropcam co-founder Greg] Duffy witnessed [Nest founder Tony] Fadell berate a former Google engineer who was working on computer vision for the Nest Cam. The engineer began to explain the challenges in deciphering the different types of movement that might be captured by cameras.

In front of about 20 other people, Mr. Fadell blew up at the employee for getting off topic, Mr. Duffy recalled. Mr. Fadell told the employee to pull the algorithm from Photoshop, according to Mr. Duffy. He went on to question what the engineer had accomplished and to declare results had to be forthcoming or there would be trouble, Mr. Duffy recalled.

In Mr. Duffy’s view, Mr. Fadell’s Photoshop suggestion demonstrated that Mr. Fadell didn’t understand the technology he was trying to build and that the engineers working underneath Mr. Fadell didn’t feel empowered to forcefully push back when Mr. Fadell was wrong.

Through a spokeswoman, Mr. Fadell said he told the engineer to look at Photoshop, which offered a tool similar to what Nest was trying to accomplish, in order to learn how to implement the technology.

More than half of the 100 Dropcam employees hired by Nest have now left. In an interview with The Information, Mr. Fadell blamed the Dropcam team for the problems with the acquisition. “A lot of the employees were not as good as we hoped,” he said. It was “a very small team and unfortunately it wasn’t a very experienced team.”

«

Dropcam has run into the sand inside Nest, essentially.
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France fines Google over ‘right to be forgotten’ » WSJ

Sam Schechner:

»France’s data-protection regulator has slapped a fine on Alphabet Inc.’s Google for not implementing Europe’s “right to be forgotten” globally, rejecting a compromise offered by the search firm and setting up a court battle over the scope of the divisive rule.

France’s Commission Nationale de l’Informatique et des Libertes, or CNIL, said Thursday that the search engine had violated a formal order last year ordering it to apply the new right to be forgotten to “all domain names” of the search engine, including google.com, and fined the company €100,000 ($112,000).

As part of its decision, the regulator rejected a compromise offered by Google, in which it would apply the rule to all of its sites when they were accessed from an European Union country where a removal-request originated… For example, links about a French person that are removed under the right to be forgotten would also be removed from all Google sites when the searcher is in France—but not if the searcher is in Germany or outside the EU.

«

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Builder’s life saved by Apple Watch » The Sun

Daniel Jones:

»A builder who was suffering a heart attack had his life saved by his Apple Watch.

When Dennis Anselmo started to “feel terrible” he thought it was because he was coming down with a fever.

But when the 62-year-old glanced down at his Apple gadget he saw that his heart rate was more than 210 beats a minute.

Doctors who later cleared the blockage in his arteries told him if he had gone home and slept he would have likely had a second, fatal attack, in the middle of the night.

«

Happens that he was fascinated with checking his heart rate, but maybe it should flash a warning if your heart rate goes over something safe? Also of note: he owns 35 other watches. (He now doesn’t wear them.)

Pretty priceless advertising for Apple – this is the second case I’ve seen in the media where a heart problem has been highlighted by the Watch.
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Explosive road rage-like anger linked to parasite spread by cats » New Scientist

Brian Owens:

»Infection with Toxoplasma gondii, a protozoan parasite carried by cats, has been linked to a human psychiatric condition called intermittent explosive disorder. People who have IED typically experience disproportionate outbursts of aggression, like road rage. T. gondii is already known to change the behaviour of the organisms it infects. By making rodents bolder and more adventurous, the parasite makes them more likely to be caught and eaten by a cat, allowing the parasite to complete its life cycle.

It can also infect humans, through contact with cat faeces, poorly cooked meat or contaminated water, and as many as one-third of the world’s population may be infected. The protozoan doesn’t make us feel sick, but forms cysts in the brain where it can remain for the rest of a person’s life. Such infections have been linked to psychiatric conditions including schizophrenia, bipolar disorder and suicidal behaviour. People infected with T. gondii also have slower reaction times and are more likely to be involved in car accidents.

«

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Smartwatch company Pebble is laying off 25% of its staff » Tech Insider

Steve Kovach:

»Pebble, the buzzy startup credited for being one of the first companies to launch a modern smartwatch, is laying off 40 employees this week, CEO Eric Migicovsky told Tech Insider in an interview. That’s about 25% of its total staff.

Migicovsky also said the company has raised $26m over the last eight months on top of its $20m Kickstarter campaign that started in February 2015. He wouldn’t disclose the investors, but did say Pebble has raised a mix of debt and venture capital from private investors.

Migicovsky blamed a chilly fundraising environment in Silicon Valley for the layoffs.

“We’ve definitely been careful this year as we plan our products,” Migicovsky said. “We got this money, but money [among VCs in Silicon Valley] is pretty tight these days.”

«

Note that: debt and VC. Debt is potentially toxic to a company struggling with cashflow because it can be called in, and it also usually imposes an ongoing cost. Pebble has problems, like a lot of wearables makers.
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Tay, Microsoft’s AI chatbot, gets a crash course in racism from Twitter » The Guardian

Elle Hunt:

»The bot uses a combination of AI and editorial written by a team of staff including improvisational comedians, says Microsoft in Tay’s privacy statement. Relevant, publicly available data that has been anonymised and filtered is its primary source.

Tay in most cases was only repeating other users’ inflammatory statements, but the nature of AI means that it learns from those interactions. It’s therefore somewhat surprising that Microsoft didn’t factor in the Twitter community’s fondness for hijacking brands’ well-meaning attempts at engagement when writing Tay. Microsoft has been contacted for comment.

Eventually though, even Tay seemed to start to tire of the high jinks.

»

— TayTweets (@TayandYou)
March 24, 2016
@brightonus33 If u want… you know I’m a lot more than just this.

«

Late on Wednesday, after 16 hours of vigorous conversation, Tay announced she was retiring for the night.

Her sudden retreat from Twitter fuelled speculation that she had been “silenced” by Microsoft, which, screenshots posted by SocialHax suggest, had been working to delete those tweets in which Tay used racist epithets.

«

Honestly – I noted its existence, went to sleep and woke up to find it had run amok. Neatly proving that Mary Shelley’s Frankenstein was a parable for all the ages.
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Google and Obama administration connect over Cuba » WSJ

Brody Mullins and Carol Lee:

»When President Barack Obama was working secretly to restore diplomatic and business relations with Cuba two years ago, he got some help from an unlikely place.

Google Executive Chairman Eric Schmidt and other company executives, with encouragement from the White House, traveled to Havana in June 2014 to talk with the Cuban government about the benefits of Internet access. When he returned, Mr. Schmidt called for an end to the trade embargo.

The White House didn’t tell Google, now a unit of Alphabet Inc., about the secret negotiations with Cuba. But by the time Mr. Obama announced that December the U.S. would restore diplomatic ties, Google had established a toehold in the island nation by rolling out versions of its popular search engine and other Internet offerings.

On Monday, during the first full day of Mr. Obama’s historic trip to Havana, the president announced that Google had reached a deal to open a temporary demonstration project in Havana to showcase some of its Internet products.

«

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The mobile games industry is kept afloat by less than 1% of users » The Next Web

Amanda Connolly:

»game creators often use a free-to-play model, allowing users to play a good chunk of the game before having to pay for access to additional levels or features. However, that’s risky business because there is no guarantee that the users will ever pay.

A new report is highlighting that risk, showing that almost half of all the revenue generated in mobile gaming comes from just 0.19% of users.

That means the other 99.81% of users aren’t worth anything money-wise to the creators. Of course, high user numbers are never bad and advertising also plays a key role in generating cash but it’s the people who play the games that dictate the success.

Of the 0.19% who are spending money, very few of these are doing it often; 64% are making just one paid in-game purchase per month, while it’s just 6.5% making five or more paid in-game purchases, with the average spend per player being $24.33.

Conducted by marketing firm Swrve, the report looked at over 40 free-to-play games through February 2016, analyzing the uses of more than 20 million players.

It makes for a stark look at how such a big industry, worth more than $10bn, is so reliant on a few hardcore users for revenue.

«

From 20 million players, 0.19% is 38,000 people; and 6.5% of them is 2,470. As the $24.33 figure relates to the 38,000, then the revenue from those 20 million players is $0.92m, across 40 F2P games in a month. Average per game: $23,110 in a month. But it will be skewed – one game probably gets 80% of the revenue. That means the remaining 39 would get an average of $4,741 in the month (while the big one gets $740,000).
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Samsung says S7 sales exceed forecast » Korea Times

Kim Yoo-chul:

»”Samsung is satisfied to see good sales of Galaxy S7,” Ko Dong-jin, head of the company’s mobile business division, told local reporters. “Yes, the initial shipment numbers are looking good.”

The remarks came on the sidelines of Ko’s participation in the weekly meeting with top executives of Samsung Group affiliates in Seocho Samsung Tower, southern Seoul.

The mobile boss, however, remained tightlipped about how many S7s have so far been sold since the devices became available for preorder on March 11.

Market analyst said that sales and preorders of the S7s have exceeded earlier forecasts in China, Europe and India. Specifically in Europe, it is said that the company saw a 250 percent increase in combined preorder sales.

«

Studiedly vague. It was only a couple of years ago that Samsung used to give precise numbers for preorders.
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Vice CEO Shane Smith on dealing with agencies: ‘We want to make great shit but it’s a war.’ » Digiday

Shareen Pathak reporting on the 4A Transformation conference on Tuesday:

»The issue of “not rocking the boat” is a consistent charge leveled at ad agencies. Last week, a top buyer at a media agency told Digiday that agencies are often afraid of starting from scratch to solve client problems because it’s too hard. And that kind of mindset has helped fuel to the rise of innovative branded content at publishers like Vice and the New York Times. [NYT chief executive Mark] Thompson said the [NY] Times’s brand content arm, T-Brand Studio, now has 70 employees and is doing $60m in revenue.

Of course, the pressure is also on publishers: Thompson said the talk of “disruption” happening at the agency-oriented conference this week is old news to publishers and journalism organizations, which have now realized that ads and subscription-based businesses are not going to cut it. “In the digital publishing and legacy publishing business, winter is coming,” he said. “A lot of people have bet their futures on very large, wide and thin digital audiences, monetized through commoditized display advertising. I think a lot of people are going to go out of business.”

«

“Winter is coming”. Related: IBT Media, which publishes International Business Times and Newsweek, has laid off at least 15 people (perhaps more?) in New York and California.
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Why you should try that crazy virtual reality headset » WSJ

Joanna Stern provides a number of examples – with 360-degree video – to show how VR can have real-world applications:

»By visiting places in the real world that I’d already seen in VR, I came to realize that these silly headsets can be magical. They also have a dark side: It’s easy to end up nauseous, and—more frighteningly—virtual experiences can sometimes get too real. More often than I imagined, the line between the two realities starts to blur.

I’m walking into the master bath of a $7.3M penthouse that just hit the market. The blue tub that backs up to a stunning view of downtown San Francisco is perfect. While examining the square showerhead, I feel something I never have before, a newfangled sort of déjà vu. Though my physical body has never been here, I remember it. In my office just two days ago, I was staring at the same brass spigot, via a VR headset.

The first person you try VR with could be a realtor rather than a Best Buy employee. San Francisco realtor Roh Habibi now keeps a Samsung Gear VR headset in his car. “I’ve locked in showings just after having a client put on the headset,” he says. Sales gimmick or no, when I set foot in that house, I knew exactly how to get to that bathroom.

«

(Though the examples are, when viewed just on a browser, pretty much a recap of Quicktime VR, which dates back to 1994.)
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Errata, corrigenda and ai no corrida:

Start up: careful with that axe, Marissa!, PC consolidation, ultra-cheap Android, and more

Yes, we need to discuss this. Photo by Janitors on Flickr.

You can now sign up to receive each day’s Start Up post by email. You’ll need to click a confirmation link, so no spam.

A selection of 11 links for you. Use them wisely. I’m charlesarthur on Twitter. Observations and links welcome.

Ringing Bells Freedom 251: cheapest Android smartphone for just Rs 251 ($3.65) » TechPP

Raju PP:

• 4-inch qHD screen with IPS
• 1.3 GHz quad-core processor
• 1GB RAM
• 8GB internal storage
• microSD slot for up to 32GB of external storage
• 3.2MP rear camera with auto focus
• 0.3MP (VGA) front camera
• 3G support
• 1450 mAh battery
• Android 5.1 Lollipop

The above hardware specifications look like an entry level smartphone from 2014 with no major compromises. Going by the published images, it doesn’t look bad either, at least not an eyesore that one would expect for a phone costing less than what you’d pay for a coffee at Starbucks.

Looks OK (they have actual photos). A bit like something from a cornflakes packet, but at that price it’s proof of how Android is revolutionising communication, and the world.

Only question now is whether the company can survive and make enough.
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Samsung fails to secure thousands of SmartThings homes from thieves » Forbes

Thomas Fox-Brewster:

Critically, anyone relying on SmartThings devices for home security is vulnerable. In an environment where the SmartThings hub is connected to the firm’s own motion sensors, which act like traditional security alarms but provide alerts to people’s phones when activity is detected, they allow a hacker to enter a home undetected. Even worse, when connected to a connected smart lock, Cognosec researcher Tobias Zillner says a robber can get break into a home without using any brute force whatsoever.

“At the moment I am able to hack the system … and open the door lock as well as to jam the motion sensor without any trace left back in the system,” he told Forbes.

Come on, you knew the Internet of Things was going to lead to this.
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Priorities in a time of plenty » Asymco

Horace Dediu:

The mass phenomenon of measuring the wrong thing because it’s the easiest to measure is called “financialization”. Financialization is the process by which finance and finances (rather than creation) determine company, individual and society’s priorities. It comes about from an abundance of data that leads to fixation on what is observable to the detriment of awareness of hazards or obstacles or alternatives. This phenomenon is more likely when the speed of change increases and decision cycles shorten.

Financialization is creeping into all aspects of society and the extent to which it infects companies is the extent to which they suffer from early mortality.

So is Apple avoiding financialization? How can anyone avoid the tyranny of mis-optimization?

Dediu’s writing is lyrical, despite the topic; the way that he seems to grope towards the conclusion (but actually knows where he’s going) is great to watch.
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The ax falls at Yahoo » POLITICO

Peter Sterne:

“On our recent earnings call, Yahoo outlined out a plan to simplify our business and focus our effort on our four most successful content areas  – News, Sports, Finance and Lifestyle. To that end, today we will begin phasing out the following Digital Magazines:  Yahoo Food, Yahoo Health, Yahoo Parenting, Yahoo Makers, Yahoo Travel, Yahoo Autos and Yahoo Real Estate,” [Yahoo global editor in chief Martha] Nelson wrote in a Tumblr post.

In addition, a source familiar with the matter said that Yahoo was ending its tech vertical and moving some of its staff — including former New York Times columnist David Pogue — to Yahoo’s news vertical. Eater first reported that the food vertical was being shut down and Skift first reported that the travel vertical was being shut down.

As part of the changes, the editors of all of the eliminated verticals are being laid off. Dan Tynan, who joined Yahoo Tech as a columnist in December 2013 and became editor in chief of the vertical in July 2015, announced his departure in a farewell memo to staff.

“Well, that was not entirely unexpected. Eight Hundred and Four days after taking the purple, my career as a Yahoo is over,” he wrote.

Doubt the chopping is over yet. Tynan wrote in his memo that he worked with “the best (and smallest) staff of any tech publication on the internet”. You can argue about the quality, but smallest? Lots of news orgs would disagree.
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Vaio near deal with Toshiba, Fujitsu to form Japan PC giant » Bloomberg Business

Pavel Alpeyev and Takashi Amano:

Vaio Corp., the personal computer maker spun off from Sony Corp. in 2014, is closing in on a three-way merger with rivals to create a producer that can dominate Japan and weather a shrinking global PC market.

Vaio expects to strike an agreement to combine with Toshiba Corp.’s and Fujitsu Ltd.’s PC divisions by the end of March, said Hidemi Moue, chief executive officer of Japan Industrial Partners Inc., the buyout fund that now controls the former arm of Sony. Vaio expects to own the biggest stake in the merged company, which can help the trio save on research and development and scale production, he said…

…The tie-up “makes sense if you want to build a niche consumer base in Japan,” said Damian Thong, an analyst at Macquarie Group Ltd. in Tokyo. “This approach of merging three Japanese PC makers will probably have little chance of success outside of the country”…

…“In the PC business, all options are on the table for restructuring and partnerships, but nothing has been decided at this moment,” Toshiba’s spokesman Hirokazu Tsukimoto said. A spokeswoman at Fujitsu declined to comment.

In contrast to the gloom, Vaio is set to report its first monthly profit in March and Moue expects the company to be profitable in the year ending May 2017. Japan Industrial Partners has slashed the workforce to 240 from about 1,000, slimmed its product line-up and focused on premium business users, he said.

Consolidation was inevitable.
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In the matter of the search of an Apple iPhone seized during the execution of a search warrant » DocumentCloud

This is a scan of the order compelling Apple to help the FBI break into an iPhone 5C used by one of the San Bernadino killers (more details on this below, or in the docket). Note that it says that Apple must “[provide] the FBI with a signed iPhone software file, recovery bundle or other Software Image File that can be loaded onto the Subject Device… The SIF will be coded by Apple with a unique identifier of the phone so that the SIF would only load and execute on the Subject Device.”

Apple has five days to appeal. Below is its response.
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Customer Letter » Apple

Tim Cook (and perhaps a few others at Apple) on why they’re refusing to create a version of iOS to be installed on an iPhone 5C seized from one of the killers in the terrorist attack at San Bernadino that would let the US government brute-force its password/code:

The government suggests this tool could only be used once, on one phone. But that’s simply not true. Once created, the technique could be used over and over again, on any number of devices. In the physical world, it would be the equivalent of a master key, capable of opening hundreds of millions of locks — from restaurants and banks to stores and homes. No reasonable person would find that acceptable.

The government is asking Apple to hack our own users and undermine decades of security advancements that protect our customers — including tens of millions of American citizens — from sophisticated hackers and cybercriminals. The same engineers who built strong encryption into the iPhone to protect our users would, ironically, be ordered to weaken those protections and make our users less safe.

We can find no precedent for an American company being forced to expose its customers to a greater risk of attack. For years, cryptologists and national security experts have been warning against weakening encryption. Doing so would hurt only the well-meaning and law-abiding citizens who rely on companies like Apple to protect their data. Criminals and bad actors will still encrypt, using tools that are readily available to them.

Apple has framed this well: that it’s about security (not privacy). You’ll recall that last week the FBI’s director declared that investigators couldn’t unlock the phone.

The American Civil Liberties Union and Electronic Frontier Foundation and WhatsApp have all backed Apple’s stance; the ACLU says “code is speech, and this would be forced speech, which is against the First Amendment, and perhaps the Fourth and Fifth too”.
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Apple versus the FBI, understanding iPhone encryption, the risks for Apple and encryption » Stratechery

Ben Thompson dug into the detail of the encryption that the 5C held by the FBI does and doesn’t have; if it had been a 5S, he explains, things would have been different:

thanks the secure enclave an iPhone 5S or later, running iOS 8 or later, is basically impossible to break into, for Apple or anyone else. The only possible solution from the government’s perspective comes back to the more narrow definition of “backdoor” that I articulated above: a unique key baked into the disk encryption algorithm itself.

This solution is, frankly, unacceptable, and it’s not simply an issue of privacy: it’s one of security. A master key, contrary to conventional wisdom, is not guessable, but it can be stolen; worse, if it is stolen, no one would ever know. It would be a silent failure allowing whoever captured it to break into any device secured by the algorithm in question without those relying on it knowing anything was amiss. I can’t stress enough what a problem this is: World War II, especially in the Pacific, turned on this sort of silent cryptographic failure. And, given the sheer number of law enforcement officials that would want their hands on this key, it landing in the wrong hands would be a matter of when, not if.

This is why I’m just a tiny bit worried about Tim Cook drawing such a stark line in the sand with this case: the PR optics could not possibly be worse for Apple. It’s a case of domestic terrorism with a clear cut bad guy and a warrant that no one could object to, and Apple is capable of fulfilling the request. Would it perhaps be better to cooperate in this case secure in the knowledge that the loophole the FBI is exploiting (the software-based security measures) has already been closed, and then save the rhetorical gun powder for the inevitable request to insert the sort of narrow backdoor into the disk encryption itself I just described?

Then again, I can see the other side: a backdoor is a backdoor, and it is absolutely the case that the FBI is demanding Apple deliberately weaken security.

A couple of other points: the phone actually belongs to the California government; it was issued to a person who turned out to be a killer in the San Bernadino incident. That means it’s probably the government which implemented the Mobile Device Management (MDM) which wipes the phone after 10 failed passcode attempts. But they also can’t get into it. Also of note: the docket mentions that the killer destroyed two other phones ahead of the incident – they seem to have been “burner” phones, intended to destruction. So it’s likely that there’s nothing of interest at all on *this* phone.

The FBI has the iCloud backups up to October 19 (see p17 of the scan, above); the killings were on December 4.
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Why the FBI’s request to Apple will affect civil rights for a generation » Macworld

Rich Mogull (a security expert):

Apple has a long history of complying with court orders and assisting law enforcement. Previous to iOS 8, they could extract data off devices. Even today, data in most of their online services (iCloud, excluding iMessage and FaceTime) can be provided upon legal request.

This case is different for multiple reasons:

• Apple is being asked to specifically create new software to circumvent their security controls. They aren’t being asked to use existing capabilities, since those no longer work. The FBI wants a new version of the operating system designed to allow the FBI to brute force attack the phone.

• The FBI is using a highly emotional, nationally infamous terrorism case as justification for the request.

• The request refers to the All Writs Act, which is itself under scrutiny in a case in New York involving Apple. Federal Magistrate Judge James Orenstein of the Eastern District of New York is currently evaluating if the Act applies in these cases.

That’s why this is about far more than a single phone. Apple does not have the existing capability to assist the FBI. The FBI engineered a case where the perpetrators are already dead, but emotions are charged. And the law cited is under active legal debate within the federal courts.

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CRN Exclusive: Google terminating Play For Education in a small-scale retreat from Android’s educational market » CRN

Google is retreating from a small segment of its booming education business by ending the life of a product that was developed to encourage adoption of Android tablets in schools, Google partners told CRN on Friday.

Google Play for Education, an extension of the Play software distribution platform, was rolled out around two years ago with the intent of putting more tablets into the hands of students. The app store, curated in close collaboration with educators, enabled solution providers to manage both devices and their specialized content…

…One [reseller] executive who asked not to be named told CRN he learned of the product’s termination after attempting to procure tablets for a customer.

“We noticed something funny a couple weeks ago” when a client requested a quote for a number of Play for Work tablets, the Google partner told CRN. “Basically all manufacturers told us all those devices were end-of-lifed.”

Asus, then Samsung, said they didn’t have replacement devices that were Play-integrated, the reseller said. They told him to look at Chromebook laptops as an alternative.

Google later informed the partner that Play for Education was on its way out, and the company should focus on its Chromebooks practice for serving the educational market.

That partner exec said he believes some capability issues, like a limited number of student profiles that could be loaded onto a single device, coupled with competition from Apple’s iPads, kept the Android tablets from deeply penetrating the education market, and convinced Google to step back from the program.

Google made a big marketing push last year for the educational tablets, the partner exec said, but “I’m not sure it ever clicked.”

This makes it seem as though both Play For Education *and* Play For Work are dead, if those devices were EOL’d. Tablets and Android have never been a good fit.
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News discovery » Sqoop

It’s a new Seattle-based startup, which mines US SEC documents and others for current information:

Sqoop saves you time and makes sure you don’t miss the story by giving you one place to search for company information, rather than spending hours each week conducting the same repetitive searches across a variety of public data sites. You can set alerts so that when new documents are filed, we’ll alert you how and when you want.

One to kick the tyres on. (I previously used SECAlerts.com but found it impossible to change settings.) Thanks to David Senior for the pointer.
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Errata, corrigenda and ai no corrida:

Start up: Douglas Adams’s living video game, Sony cuts, Microsoft’s future, haunted empires and more


How To Train Your Dragon was a success for Dreamworks, but other films aren’t. Picture by donielle on Flickr.

A selection of 9 links for you. Use them wisely. I’m charlesarthur on Twitter. Observations and links welcome.

Samsung patents home-screen backup and transfer solution » Phandroid

No major smartphone manufacturer has yet to create a solution for copying home screen setups from one device to another. It’s a feature we’ve been hoping to see in Android from Google’s own ingenuity for quite some time, but someone seems to have beaten them to the punch.

Samsung’s latest patent details a software solution that would allow a user to configure a home-screen and copy it to another remote device. The details in the patent are very specific about the process, but an abstract look at the thing reveals a few different possible scenarios…

Umm, “no major smartphone manufacturer”? Apple has had this backup thing called iCloud since 2011 which lets you create a phone that clones your previous layout, apps, settings, everything. Commenters also mention an app called Nova – and say that Lollipop does it anyway.


Sony to cut 1,000 jobs in smartphone business, says Nikkei » Re/code

Sony plans to cut another 1,000 jobs in its smartphone division, mainly in Europe and China, the Nikkei business daily reported.

The cuts are in addition to the 1,000 jobs Sony said it would eliminate in its mobile unit in October, the Nikkei said.

Overall, Sony’s mobile division workforce will shrink by about 30% to 5,000 by the end of the fiscal year ending March 2016, the report said.

Can’t remember when I saw a report of Sony expanding a division. (Maybe the PlayStation division does it quietly.) Of course, contract manufacturing means you don’t need a gigantic dedicated workforce to make a lot of phones. Just the right workforce.


My thesis on Microsoft » Beyond Devices

Jan Dawson:

I see a downward trajectory over time in sales of Windows in total, even accounting for the many different form factors Windows runs on. As such, last quarter’s poor performance in Windows sales is much more indicative of the longer-term trend than short-term headwinds. I see Windows 10 slowing the decline a little, but I actually think the free upgrades could stall or postpone new device purchases for some users, which may be counterproductive in the short term. I don’t see Windows 10 solving any of the fundamental challenges I just outlined.

Software sales to consumers will shrink to zero

To my mind, the other major question about Microsoft’s future is its ability to continue to sell software to consumers for a price. I’ve talked for some time now about the fact that, in Microsoft’s two major software categories (OS and productivity), its two major competitors and essentially every other company now give their software away for free.

Hard to argue with any part of this. The downward pressure on Microsoft is inescapable. Strange that at a time when software is eating the world, the ability to charge for it is vanishing.


Haunted Empire » Asymco

Horace Dediu:

I’ve often said that corporate governance is medieval, or pre-scientific in its approach to understanding causality. That may be too generous. As far as the reward/punishment system (also known as Human Resources) it’s probably pre-neolithic. The luxuries and extravagance which we heap upon the leader provide abundant evidence. Leaders insist on these ironic “pay packages” and boards approve them because they know they can and will be ritualistically sacrificed if and when the mobs turn against them.

A manager would be a fool to accept even generous pay given the risk, actually near certainty, of ritualistic slaughter. They demand and are unquestionably given absurd pay that has no relationship to performance. Such pay has no relationship to performance because it isn’t designed to reward performance but to account for the risk of arbitrary and very public sacrifice. Boards (and hence shareholders) are deliberately hiring a scapegoat for sins as yet unknown. Luxury and violence are thus finely balanced in what is called “Executive Search”.

A finely-judged thumb in the eye for a lot of management speak, and for a book about Apple.. oh, what was the name…


How DreamWorks Animation can claw its way back » The Hollywood Reporter

The maker of Shrek is in financial trouble:

And while the film unit is clearly troubled — four of the last six movies have resulted in write-downs (Rise of the Guardians, Mr. Peabody & Sherman, Turbo and Penguins of Madagascar) — Katzenberg has put new co-presidents (Bonnie Arnold and Mireille Soria) in charge of filmmaking and is making good on his 2013 promise to diversify “from an animated feature film company into a multifaceted, branded-entertainment company.” For its most recent quarter, DWA reported a $46.4m loss, but its television segment showed a $2.3m profit and consumer products posted a $4.2m profit.

There also are signs that its digital acquisition AwesomenessTV is profitable (DWA reported a $1.2m profit attributed to “other items,” which consists largely of Awesomeness). DWA paid $33m for Awesomeness in 2013 with a potential earn-out of another $115m. Instead, DWA settled the earn-out last year for $80m then sold 25% of Awesomeness to Hearst Corp. for $81.3m. The net result is that DWA paid about $33m for a 75% stake in a fast-growing, potentially highly profitable digital asset that has a perceived value of more than $300m.

But by focusing on expansion and diversification, Katzenberg acknowledges he might have been distracted from job No. 1: making profitable movies.

Contrast with Pixar, bought by Disney and still turning out successful films – yet always focussing on the story, and not just churning them out. Pixar, of course, was made successful by Steve Jobs. And it retains its focus.


The Apple Watch: The next big thing or living on borrowed time? » Harvard Business School

From September 2014:

Q Do you think the Apple Watch will fundamentally change our lives in a similar way the iPhone and iPad did?

Ryan Raffaelli, Harvard Business School assistant professor: We often define radical innovations as “competency- destroying,” meaning that they render all related products and services in the same market category obsolete. While the Apple Watch is certainly the most advanced smartwatch on the market today, I’m not sure it fits the traditional definition of a “radical” innovation. For instance, it is unlikely the Apple Watch will have the same transformative effect on society as other life-changing innovations throughout history – think about the steamship’s impact on the sailing industry, how the personal computer ended the use of typewriters, or how electronic fuel injection systems replaced carburettors.

The news that the Apple Watch isn’t as radical as the steamship or fuel injection will, surely, persuade Jony Ive once and for all that it’s time to give it up and head off into the sunset.


BlackPwn: BlackPhone SilentText type confusion vulnerability » Azimuth Security

In the phone market, one of the premier products to be released in recent years is undoubtedly the BlackPhone (http://www.blackphone.ch), which has been cited numerous times in tech publications as being one of the best available defences against mass surveillance, as it provides full end-to-end encryption facilities for voice calls and text/MMS messaging.

While exploring my recently purchased BlackPhone, I discovered that the messaging application contains a serious memory corruption vulnerability that can be triggered remotely by an attacker.  If exploited successfully, this flaw could be used to gain remote arbitrary code execution on the target’s handset. The code run by the attacker will have the privileges of the messaging application, which is a standard Android application with some additional privileges. Specifically, it is possible to:

• decrypt messages / commandeer SilentCircle account
• gather location information
• read contacts
• write to external storage
• run additional code of the attacker’s choosing (such as a privilege escalation exploit aimed at gaining root or kernel-mode access, thus taking complete control of the phone)

How surprising that people would believe a claim made by a company about having excellent security.


The secret Douglas Adams RPG people have been playing for 15 years » Kotaku

Fantastic tale from Lewis Packwood:

Yoz [Grahame] then quickly forgot all about the employee forum, but six months later he happened to take a quick peek. And there were ten thousand posts in there.

Bearing in mind that the forum was buried deep within the website and was (just about) password secured, this was a phenomenal result. But even more fascinatingly, the forum had evolved into an extension of the game itself.

Visitors to the forum had created fictional employees and passengers on the Starship Titanic and begun role playing as them. Someone would make up an implausible, Adams-esque scenario, and everyone else would react to it in character, resulting in some enormously complex storylines and in-jokes that developed and diversified over years. And this strange fictional world had appeared entirely spontaneously, without any input from Douglas Adams or The Digital Village. Indeed, Yoz was as surprised as anyone when he stumbled across it: “It was like ignoring the vegetable drawer of your fridge for a year, then opening it to find a bunch of very grateful sentient tomatoes busily working on their third opera,” he says.

I loved Starship Titanic. Not least because there were two alternative endings, diametrically opposed in their result.


A pirated version of the Assassin’s Creed application for Android is bundled with malware » 0xicf

“Blackpiano”:

The Trojanized variety of the Assassin’s Creed application has the potential to be quite potent, because when a user downloads it, what he or she is actually downloading is malware. The malware in turn downloads a fully functional, pirated version of the actual application. The gaming app works as advertised, so the standard mobile gamer is going to have a tough time realizing that the package they’ve downloaded is malicious…

…The malicious application is capable of sending multi-part text messages, harvesting text messages from a victim’s device, and sending stolen information to a remote Command & Control (C2) server. We were able to locate phone numbers belonging to Russian bank “Volga-Vyatka Bank of Sberbank of Russia” in the malicious application code for which SMS messages are being intercepted to steal sensitive information.

Sneaky.