Friday 15 April 2016

Structure News: Stop me before I legislate again

STRUCTURE EVENTS Newsletter
 
Where Our Back Doors Lead To The Cocktail Party
April 15th, 2016 / by Tom Krazit
This week, we'll talk about the return of the tech IPO, a rough day for Google's cloud, and why sometimes it's a really good thing that Congress is so dysfunctional when it comes to passing laws.
STRUCTURE NEWS
THE STRUCTURE SHOW: SECUREWORKS GOES PUBLIC, BOX GOES OVERSEAS, FACEBOOK GOES BOT-CRAZY
We cranked out another edition of The Structure Show this week, with Barb Darrow of Fortune joining me for a delightful conversation on how SecureWorks going public is another step on the long road to the Dell-EMC merger. We also ponder how Box will expand overseas without a ton of cash (spoiler: partnerships) and how bots are taking over the news cycles, this time led by Facebook's Mark Zuckerberg.

STRUCTURE DATA 2016 EVENT COVERAGE

The Structure Data 2016 archives are complete, with all 34 sessions available here, along with videos of each session. Thanks once again to all the speakers, sponsors, attendees, and moderators that made Structure Data 2016 such a great event for fans of big data, machine learning, and artificial intelligence.
 
INDUSTRY NEWS
SECUREWORKS COULD RAISE UP TO $181 MILLION IN IPO
Just in case you were wondering if there was actually going to be a tech IPO in 2016, SecureWorks stepped up to the plate this week with plans to go public, as reported by Fortune. The IPO is a substantial milestone for the epic Dell-EMC deal, as it will get SecureWorks off Dell's books while (assuming the IPO goes well) giving it a nice stock asset to offset the mountain of debt it is using to buy EMC.

BOX TEAMS UP WITH AMAZON, IBM TO OFFER LOCAL STORAGE WORLDWIDE

One of the consequences of the post-Snowden era is the growing reluctance of companies based outside the U.S. to store their data inside the country. That means setting up datacenters around the world, or, if you're a company like Box that doesn't have the cash to finance that kind of expansion, partnering with the big guys like Amazon Web Services and IBM, as Recode notes.

GOOGLE HAS GIVEN ITS OPEN-SOURCE MACHINE LEARNING SOFTWARE A BIG UPGRADE

Google open-sourced TensorFlow, its machine-learning software, last year right before Structure 2015, and The Verge reports that Google has improved the software by making it possible to run it across distributed machines. Improving access to AI technology was a big theme of Structure Data 2016, and it sounds like TensorFlow (which The Verge says is the most popular machine-learning project on Github) is making an impact.

DIGITALOCEAN GETS $130 MILLION CREDIT LINE BECAUSE SERVERS ARE REALLY EXPENSIVE

Remember when every internet company had to spend big money building out servers? While most of us are thankful those days are done, DigitalOcean has taken out a credit line to fund expansion of its datacenters in hopes of attracting bigger cloud clients, according to Techcrunch

GOOGLE APOLOGIZES FOR CLOUD OUTAGE THAT ONE PERSON DESCRIBES AS A 'COMEDY OF ERRORS'

Of course, back in the day when you had to build out your own infrastructure, you couldn't blame someone else when your systems crashed. Google Compute Engine went down for 18 minutes (the computing equivalent of an eon) on Monday, and Google, coming off a big marketing push for its cloud services over the past month, apologized profusely to clients like Zulily and Evite, as reported by Business Insider.

MICROSOFT SUES JUSTICE DEPARTMENT OVER DATA GAG ORDERS

It's been a testy year so far between the tech industry and Washington (more on that in a bit), and relations don't appear to be warming after Microsoft sued the DOJ Thursday demanding the right to notify its customers when data they have stored in Microsoft's cloud services is accessed by the government. "It’s very important for businesses to know when the government is accessing their file room, whether the file room is down the hall or in the cloud," said Microsoft President and Chief Legal Officer Brad Smith, as noted by Bloomberg.
 
BIG PICTURE
The only thing more dangerous than a member of Congress who knows what they are doing is a member of Congress who has no clue what they are doing.

The Senate Intelligence Committee released the draft of a bill on encryption this week to howls from the tech community, as can be expected these days whenever the government tries to weigh in on encryption. Co-sponsors Richard Burr of North Carolina (above, right) and Dianne Feinstein of California (above, left, and who should know better, given her constituency) want to compel tech companies "to provide 'technical assistance' to government investigators seeking locked data," as reported by The Hill.

There are an amazing number of people in government circles who, out of either confusion or willful ignorance of how technology works, continue to think it's possible to believe that U.S. citizens have a right to strong encryption to protect themselves from cybercrime while believing that law enforcement should have the right to break that encryption as needed. This notion of a "magical key" that could supposedly unlock encrypted technology products only under certain circumstances causes eyes to roll across the tech industry every time that phrase is uttered.

You only need to look at two other recent developments reported by Motherboard to understand why. First, the FBI quietly revealed earlier this month that a group of hackers has had access to its servers and networks since at least 2011, and have "stolen sensitive information from various government and commercial networks." Then we learned that the Royal Canadian Mounted Police has had "a single, global encryption key" to consumer BlackBerry handsets that it could use at will to monitor messages sent from those phones (businesses that use BlackBerry's enterprise software create their own encryption keys that the company -- and, presumably, the RCMP -- can't access).

If a government orders tech companies to create ways for law enforcement to access their products, those methods will be discovered and used by others for criminal purposes: it's just a matter of time. Fortunately or unfortunately for BlackBerry, there is little commercial incentive to hack into its handsets at this point, given how consumers have deserted them by the millions (even in Canada). But swap the RCMP for the FBI (which just admitted that its systems have been unsecure), and BlackBerry for Apple, and suddenly things change.

Burr and Feinstein want to freeze the development of encryption technology right as cybercrime becomes extremely lucrative: for all the frenzy around smartphones, only 68 percent of U.S. adults had one in late 2015 while 92 percent had some form of mobile phone, according to Pew Research Center. That number is going to grow, and the commercial incentives to hack those phones will grow alongside. And for all their concerns about terrorism, Fast Company notes that if the U.S. enacts such a bill, tech-savvy terrorists (which is quite a few of them these days) will simply use technology created outside the U.S. that isn't subject to those laws.

This bill has little chance of passing. But at some point, the aging generation of Congresspeople that make our laws need to truly understand how the technology works, or at least hire a group of advisers that can prevent them from doing more harm than good.
 
 
 
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