Structure News: The Singularity is coming (maybe)

This week, we'll talk about what we might one day consider a huge turning point in the development of the modern chip industry.   Where We're Making Tech Events Great Again July 22nd, 2016 / by Tom Krazit This week, we'll talk about a huge deal in the chip industry, the scaling challenge presented by Pokemon Go, and how the federal government, should it exist as a functioning organization after January 2017, is modernizing its approach to technology. BIG PICTURE For all the time we spend assessing how software is eating the world, every now and then we’re reminded of the fundamental power of the chips that make that software possible. The future of the most vital yet unheralded chip company in technology shifted quite a bit this week, and the ramifications will have an impact. Softbank’s $32 billion acquisition of ARM this week came as a surprise, especially to Softbank watchers who didn’t quite understand why the Japanese conglomerate was spending that much money for a chip designer that flies below the radar. But ARM has made a huge impact on nearly every smartphone user on the planet: its chip designs are licensed by other chipmakers, like Qualcomm and Samsung, and also used by companies like Apple as the basis for their own chip designs. There are only a handful of truly impactful chip companies. Intel has long controlled the PC and server markets, and while the PC market is yesterday's news Intel's datacenter group has been its brightest spot over the past few years, led by Structure veteran Diane Bryant. But as the smartphone revolution took hold, phone makers chose chips based on ARM’s designs for nearly every phone and tablet on the planet because they worked better in situations where power consumption (i.e., battery life and heat) is paramount. Softbank is making a big bet that those chip designs will be used in the next generation of computing devices. Companies building connected devices as part of the internet of things movement are attracted to ARM’s low-power footprint and established developer base. Specialized chips for artificial intelligence are paying off nicely for Nvidia, and Softbank’s investment might allow ARM to collaborate more closely with server vendors on datacenter chips to run the mythical ARM server we’ve been expecting all these years. (Stacey Higginbotham and I get into this topic in more detail on our latest podcast, highlighted below.) At Structure, we have always believed that the underlying infrastructure that powers the cloud, the mobile revolution, and the AI-driven future to come is just as important as the breakthrough products and services that bring those technology shifts to consumers and businesses. ARM is one of the companies that powers that infrastructure, and its future under Softbank will help set the course of tech evolution. And, in what is not a coincidence, we’ll have Marc Canel of ARM at Structure Security this September to talk about defining hardware security standards for these next-generation devices. STRUCTURE NEWS THE STRUCTURE SHOW: A HISTORIC CHIP DEAL, GOOGLE’S POKEMON GO CHALLENGE, AND WHY CLOUD PRIVACY MIGHT CAUSE NEW DATA LAWS As noted above, the Softbank-ARM deal is pretty huge, and Stacey took a break from The IoT Podcast to discuss what might come next. Barb Darrow of Fortune also joined us to talk about two big cloud stories: Microsoft’s cloud privacy lawsuit, and the struggle to keep Pokemon Go addicts from developing the shakes. You can follow The Structure Show on Soundcloud and iTunes, and if you've got a great idea for someone we can interview that would be willing to put up with somewhat haphazard production values, let us know. INDUSTRY NEWS OURMINE CLAIMS CREDIT FOR ATTACK ON POKEMON GO SERVERS As if Google’s job wasn’t hard enough, supporting the incredible growth that Pokemon Go has amassed in just two weeks, it’s fending off an DDoS attack from OurMine, the security group that has been hacking prominent tech industry figures in the name of “awareness.” Techcrunch says the group contacted it prior to launching the attack, which ostensibly confirms its account, but OurMine is really treading on thin ice by trying to bring down our Summer 2016 national pastime in the name of guerilla marketing. GOOGLE CUTS ITS GIANT ELECTRICITY BILL WITH DEEPMIND-POWERED AI Speaking of Google, it has found a way to make DeepMind pay for itself beyond beating the pants off of Go experts. Bloomberg reports that Google used DeepMind’s technology to regulate Google’s datacenters with power efficiency in mind, leading to a 15 percent improvement in power usage efficiency and a corresponding cost decrease. EARNINGS ROUNDUP: INTEL, MICROSOFT, AND IBM It’s report card time again for the tech industry, with Intel, Microsoft, and IBM reporting this week before other prominent tech companies will face the music next week. Intel’s growth wasn’t awesome, but it passed the expectations test. Microsoft beat prognosticators while still keeping its Azure revenue a secret, something IBM has likely wondered if it could try in posting its 17th straight quarter of revenue declines. STAR SPANGLED GEEKS It’s no secret that the federal government is years behind the private sector when it comes to adopting technology that could improve how it operates. Backchannel looks at how the Obama administration is using its lame duck status to reform the way the government develops -- and purchases -- technology products and services. SALESFORCE ACQUIRES DATA CENTER ANALYTICS STARTUP COOLAN Salesforce has spent some time in 2016 tinkering with its infrastructure strategy, embracing the cloud and now snapping up Coolan, a startup founded by veterans of Facebook’s Open Compute Project. Venturebeat reports that the team had just ten employees, which means Salesforce likely didn’t have to break the bank to snap up some hardcore datacenter expertise. SLACK, NOW WITH 600 APPS ON ITS PLATFORM, POURS $2M INTO 14 SLACKBOT STARTUPS VIA ITS SLACK FUND Slack is a startup with such force that it’s already investing in companies building atop its platform. The 14 different companies that received some of Slack’s outsize cash hoard are working on interesting ways to make Slack even more central to your workplace, according to Techcrunch.   QUOTE OF THE WEEK I think we are about to see the biggest paradigm shift in human history. The Singularity is coming.” — Softbank CEO Masayoshi Son, on why his company bought ARM     Structure News: Could Microsoft's big cloud privacy win wind up being counterproductive? - https://t.co/dLI5FQ2OmF8:07AM The Future of Security > The price goes up on July 15, so register now and save $200 #structuresecurity https://t.co/iB4wHId9sh11:01AM Bringing your team to #structuresecurity? Didya know we have a team bundle? Grab your colleagues, snag a ticket! https://t.co/iB4wHId9sh6:10PM   Click here to unsubscribe from this list. Our mailing address is: Structure 405 El Camino Real, #215 Menlo Park, CA 94025 Add us to your address book Copyright (C) 2016 Structure All rights reserved. Forward this email to a friend. Update your profile.