China's Didi sets up JV with BAIC unit to work on NEV projects

FILE PHOTO: A woman walks past a sign of station for Didi Chuxing in Beijing, China January 2, 2019. REUTERS/Jason Lee/File Photo

BEIJING (Reuters) – China’s Didi Chuxing said it had set up a joint venture (JV) with Beijing Electric Vehicle Co., a unit of state-owned BAIC, to work on new energy vehicle and artificial intelligence projects.

The JV, BAIC-Xiaoju New Energy Auto Technology Co. Ltd, aims to develop “next-generation connected-car systems”, Didi, China’s largest ride-hailing operator, said on Monday.

This is the first JV between Didi and state-owned BAIC, which wants to stop selling gas-driven car models by 2025 as China shifts the industry toward new energy vehicles.

The JV comes at a time when China’s market for new energy vehicles (NEVs), a category comprising electric battery cars and plug-in electric hybrid vehicles, is rapidly growing even as the country’s wider auto market cools.

In 2018, car sales in the world’s biggest auto market hit reverse for the first time since the 1990s. But NEV sales were a bright spot, jumping 61.7 percent to 1.3 million units, China’s Association of Automobile Manufacturers has said.

NEV sales in China will hit 1.6 million this year, the industry body estimates.

Didi said there are already 400,000 NEVs registered on its platform through its partnerships with leading electric vehicle makers including BYD.

Didi, whose backers include Uber Technologies Inc, Apple Inc and Japan’s SoftBank Group Corp, is reshuffling its domestic business as it expands globally with new services in South America and Australia.

Reporting by Yilei Sun and Cate Cadell in Beijing; Editing by Himani Sarkar

China's Didi, BAIC set up joint venture to work on NEV projects

FILE PHOTO: A woman walks past a sign of station for Didi Chuxing in Beijing, China January 2, 2019. REUTERS/Jason Lee/File Photo

BEIJING (Reuters) – China’s Didi Chuxing said it had set up a joint venture (JV) with Beijing Electric Vehicle Co., a unit of state-owned BAIC, to work on new energy vehicle and artificial intelligence projects.

The JV, BAIC-Xiaoju New Energy Auto Technology Co. Ltd, aims to develop “next-generation connected-car systems”, Didi, China’s largest ride-hailing operator, said on Monday.

This is the first JV between Didi and state-owned BAIC, which wants to stop selling gas-driven car models by 2025 as China shifts the industry toward new energy vehicles.

The JV comes at a time when China’s market for new energy vehicles (NEVs), a category comprising electric battery cars and plug-in electric hybrid vehicles, is rapidly growing even as the country’s wider auto market cools.

In 2018, car sales in the world’s biggest auto market hit reverse for the first time since the 1990s. But NEV sales were a bright spot, jumping 61.7 percent to 1.3 million units, China’s Association of Automobile Manufacturers has said.

NEV sales in China will hit 1.6 million this year, the industry body estimates.

Didi said there are already 400,000 NEVs registered on its platform through its partnerships with leading electric vehicle makers including BYD.

Didi, whose backers include Uber Technologies Inc, Apple Inc and Japan’s SoftBank Group Corp, is reshuffling its domestic business as it expands globally with new services in South America and Australia.

Reporting by Yilei Sun and Cate Cadell in Beijing; Editing by Himani Sarkar

Who Should Govern Your Data? Inside the Privacy Debate in Davos

Grüezi from the snow-coated Swiss Alps, in whose fir-studded, canvas blanc landscape the World Economic Forum recently transpired.

An inescapable theme at this year’s summit was data privacy. The topic happens, ironically, to play counterpoint to another central theme—that datavore dubbed “artificial intelligence,” as Adam Lashinsky, this newsletter’s regular, weekday author, noted in an earlier column (and elsewhere).

The two concepts are inversely related, a Yin and Yang. Businesses are looking to fill their bellies with as much information as possible, extracting insights that might give them an edge over the competition. Indeed, data-guzzling machine learning processes promise to amplify businesses’ ability to predict, personalize, and produce. But in the wake of a seemingly endless string of data abuses and breaches, another set of stakeholders has grown increasingly vocal about implementing some, let’s call them “dietary restrictions.” Our appetites need limits, they say; left unchecked, the fast-and-loose practices feeding today’s algorithmic models threaten to undermine the autonomy of consumers and citizens everywhere.

The subject of data stewardship clearly occupied the minds of the most powerful politicians in attendance. In the main hall of the forum, two heads of state shared their concerns on Wednesday. Japanese Prime Minister Shinzo Abe said the topic will be one of two primary agenda items for the G20 Summit he is hosting in Osaka in June. (The other is climate change.) Later, German Chancellor Angela Merkel urged Europe to find an approach to data governance distinct from the U.S.’s style, where corporations dominate, as well as the Chinese one, where the state seeks total control.

While policy-makers leaned, unsurprisingly, toward lawmaking, some members of the business set countered their notions with alternative views. Jack Ma, Alibaba’s founder, cautioned against regulation, arguing that it restricts innovation. During a panel on digital trust I moderated on Thursday, Rod Beckstrom, the former CEO of ICANN, an Internet governance group, argued that Europe went astray when it adopted the General Data Protection Regulation, or GDPR, last year, and he advised against the U.S. pursuing a similar path. Instead, Beckstrom proposed adding a privacy-specific amendment to the U.S. Constitution, one separate from the Fourth Amendment’s guard against warrantless searches and seizures. A provocative, if quixotic, idea.

By all measures, the disruptive, data-centric forces of the so-called fourth industrial revolution appear to be outpacing the world’s ability to control them. As I departed Davos, a conference-sponsored shuttle in which I was seated careened into a taxi cab, smashing up both vehicles. (No major injuries were sustained, so far as I could tell; though two passengers visited the hospital out of an abundance of caution.) While waiting in the cold for police to arrive and draw up a report, I was struck by how perfectly the incident encapsulated the conversations I had been observing all week.

We are all strapped, inextricably, to a mass of machinery, hurtling toward collision. Now what must be done is to minimize the damage.

A version of this article first appeared in Cyber Saturday, the weekend edition of Fortune’s tech newsletter Data Sheet. Sign up here.

How to Write Emails That Super Busy People Will Actually Read

Apart from traffic, stubbed toes and spoiled milk, there are few things in life more frustrating or discouraging than cold email outreach. More often than not, you’ll either rejected outright or receive no response at all.

These outcomes become even more likely when reaching out to key decision makers, public figures or any other busy person , with no reply almost being a guarantee. Yet, while getting a hold of high-profile people is difficult – whether they’re the top influencers in your industry or the publisher you’ve been trying to connect with for years –it certainly isn’t impossible. 

In fact, by applying a handful of simple, battle-tested tips and strategies to your outreach emails and messages, your chances of reaching your prospect will sky rocket.

Here are six of them.

1. Get to the point.

A friend of mine who worked in the sales department at Oracle showed me the sales template they typically use for cold outreach. To my surprise, it was only four sentences long. The same was true for a buddy of mine who works in sales at a well-known Fortune 500 company.

In short, these emails have a quick intro, a sentence explaining why they’re reaching out to the target, a blurb on the value their product or service can bring to their business and wraps up with a question asking to hop on a quick phone call, with a few suggested days and times included.

This was a game-changer for me. Before seeing these templates, I felt compelled to close the deal all within the email itself. Instead, by waiting to do the “selling” on your initial phone call, once you’ve built trust and rapport, my average response rates increased threefold.

2. Prove your the “real deal” right off the bat.

One of my most successful email campaigns (in terms of open rates) included my title as an Inc.com Columnist in the email subject line itself, and read: “Quick Question From an Inc.com Columnist”.

No matter if you’re a CEO of a fast-growing startup, an author or someone who’s just getting started, we all have something of value to offer, some form of social proofing, so be sure to make it known right away.

Additionally, include a link to what I call your “home run proof point”. If you’re a blogger trying to get on a top notch publication, this could be an article that drove a ton of comments and shares. By proving you’re not just another spammer, you’ll instantly start to build trust between you and the prospect. 

3. Personalize it.

Remember: busy people are always on the prowl for reasons not to respond to an unsolicited pitch. 

Did this cold email get my name wrong? Is this cold email relevant to my business at all? Was this cold email clearly copy and pasted?

If there’s any semblance of you not doing your due diligence when it comes to research, editing and more, your chances of getting a response are close to nothing. 

The solution? Show you did your homework by personalizing and tailoring your message to fit specifically to the person you’re reaching out to.

4. Timeliness and relevance is key.

Wherever possible, be sure to include some sort of relevant reason as to why you’re reaching out to the person. 

Has your target recently published a book, secured venture capital or received a noteworthy award? Then congratulate them on it. Show them you care. This will warm them up and increase the chance they’re more receptive to what you’re proposing.

5. Self-serving people finish last.

This might be the most important point of all – stay out of it. Meaning, make the email and the reason you’re reaching out all about the contact person. Make sure it’s crystal clear how taking the action with what you’re proposing will add nothing but value to their lives. 

No matter how busy a person is, if there’s enough value at stake, they’ll make the time to respond.

6. Make the options simple.

Within consumer psychology, a common practice to drive customers to take action is to eliminate the number of options they can make in the first place. The same applies to email outreach. By decreasing the number of decisions your target has to make, they’ll be more likely to make the leap.

Is your call-to-action hopping on Skype? Then use a tool like Calendly to eliminate any back-and-forth and streamline the scheduling process.

Is your call-to-action subscribing to your newsletter? Then link it, in bold, at the bottom of your email. 

Getting no response from a noteworthy person can get discouraging – believe me, I’ve been there. Yet, by applying the tips laid out in this article to your outreach, you’ll dramatically increase the chances of reeling them in. Best of luck.

Tencent shares jump 3 percent after Chinese regulators approve new games

FILE PHOTO: A Tencent Games logo from an app is seen on a mobile phone in this illustration picture taken Nov. 5, 2018. REUTERS/Florence Lo/Illustration/File Photo

HONG KONG (Reuters) – Tencent Holdings Ltd saw its shares jump more than 3 percent on Friday as investors cheered Chinese regulators’ approval of mobile games published by the industry leader for the first time since a freeze on approvals imposed in March.

The State Administration of Press, Publication, Radio, Film and Television on Thursday approved 95 games in its fourth list since December, with two mobile games from Tencent and a first from NetEase Inc.

Tencent, Asia’s biggest listed firm by market value, has been reeling from increased scrutiny of online gaming amid calls to tackle child addiction in the world’s largest gaming market.

Shares of the firm have lost roughly 20 percent of their market value since March. They were up as much as 3.2 percent early on Friday, beating a 1.3 percent rise in the benchmark Hang Seng Index and a 2.7 percent gain in Hang Seng sub-index tracking information technology firms.

China started resuming gaming approvals in December, though Tencent’s games had been absent from the three batches approved until Thursday, unnerving investors.

The impact of online games on the country’s youth has attracted scrutiny from Chinese President Xi Jinping, who last year urged all levels of government to implement effective schemes to prevent and treat the high incidence of myopia that authorities suspect is linked to game addiction.

China’s largest gaming and social media firm has imposed a playtime restriction since July, allowing a maximum of one hour a day for children 12 years old and under, and a maximum of two hours for those aged 13 to 18.

Founded in 1998, Shenzhen-based Tencent enjoyed uninterrupted growth from when it went public in 2004 until last year when it saw more than $200 billion wiped off its market value from a peak hit in January.

Last week, Tencent released a test version of a third-party developed smartphone game in China based on U.S. hit television show Games of Thrones, bolstering its pipeline.

Reporting by Donny Kwok; Editing by Christopher Cushing

China's Huawei books record sales in its smartphone business

BEIJING/HONG KONG (Reuters) – China’s Huawei Technologies Co Ltd said on Thursday its consumer business sales exceeded a record $52 billion in 2018, on strong demand for its premium smartphones, even as it continued to face heightened global scrutiny of its activities.

The head of Huawei’s consumer business group, Richard Yu, speaks during a presentation in Beijing, China, January 24, 2019.REUTERS/Thomas Peter

The jump of around 50 percent in the technology giant’s consumer business revenue saw that unit replace its carrier business as its largest segment by sales, Richard Yu, the head of the consumer division, said in Beijing.

Huawei last month flagged that total revenue in 2018 rose 21 percent to $109 billion without providing a breakdown of segment performance.

Huawei on Thursday also unveiled its first 5G base station chipset called Tiangang as well as its 5G modem Balong 5000, which it described as the most powerful 5G modem in the world.

Yu said it was the world’s first 5G modem that fully supports both Non-Standalone (NSA) and Standalone (SA) 5G network architecture.

The firm has been using its chipsets in its high-end phones and server products, though it has said it has no intention to become a standalone semiconductor vendor that competes against the likes of Intel Corp and Qualcomm Inc.

Huawei, the world’s biggest producer of telecommunications equipment, has been facing intense scrutiny in the past year over its relationship with China’s government and U.S.-led allegations that its devices could be used by Beijing for spying. The firm has repeatedly denied the accusations.

Some countries such as the United States and its allies, including Australia and New Zealand, have restricted Huawei’s access to their markets.

The firm’s finance chief Sabrina Meng Wanzhou, also daughter of its founder, was arrested in Canada last month at the behest of the United States.

She has been released on bail but is still in Canada as the United States pursues her extradition on allegations she defrauded banks with Iran-related sanctions. Huawei has denied wrongdoing.

Reporting by Sijia Jiang in HONG KONG and Cate Cadell in BEIJING; Editing by Christopher Cushing

Google, Facebook spend big on U.S. lobbying amid policy battles

SAN FRANCISCO (Reuters) – Alphabet Inc’s Google disclosed in a quarterly filing on Tuesday that it spent a company-record $21.2 million on lobbying the U.S. government in 2018, topping its previous high of $18.22 million in 2012, as the search engine operator fights wide-ranging scrutiny into its practices.

FILE PHOTO – The outside of the Google offices is seen in Manhattan in New York City, New York, U.S., January 18, 2019. REUTERS/Mike Segar

In its filing to Congress on Tuesday, Facebook Inc disclosed that it also spent more on government lobbying in 2018 than it ever had before at $12.62 million. That was up from $11.51 million a year ago, according to tracking by the nonpartisan Center for Responsive Politics.

Google’s spent $18.04 million on lobbying in 2017, according to the center’s data.

Google and Facebook declined to comment beyond their filings.

U.S. lawmakers and regulators have weighed new privacy and antitrust rules to rein in the power of large internet service providers such as Google, Facebook and Amazon.com Inc. Regulatory backlash in the United States, as well as Europe and Asia, is near the top of the list of concerns for technology investors, according to financial analysts.

Microsoft Corp spent $9.52 million on lobbying in 2018, according to its disclosure on Tuesday, up from $8.5 million in 2017 but below its $10.5 million tab in 2013.

Apple Inc spent $6.62 million last year, compared to its record of $7.15 million in 2017, according to center data going back to 1998.

Apple and Microsoft did not respond to requests to comment. A filing from Amazon was expected later on Tuesday.

Google disclosed that new discussion topics with regulators in the fourth quarter included its search technology, criminal justice reform and international tax reform. The company is perennially among the top spenders on lobbying in Washington along with a few cable operators, defense contractors and healthcare firms.

Google Chief Executive Sundar Pichai, who testified in December before a U.S. House of Representatives panel for the first time, has said the company backs the idea of national privacy legislation. But he has contested accusations of the company having a political bias in its search results and of stifling competition.

Susan Molinari, Google’s top U.S. public policy official, stepped down to take on an advisory role this month.

Facebook said discussing “election integrity” with national security officials was among its new lobbying areas in the fourth quarter. The filing said the company continued to lobby the Federal Trade Commission, which is investigating its data security practices.

Reporting by Paresh Dave; Additional reporting by Diane Bartz in Washington; Editing by Bill Berkrot and Sonya Hepinstall

Logitech raises FY outlook after gaming-powered third quarter

FILE PHOTO: Chief Executive Bracken Darrell of the computer peripherals maker Logitech gestures during an interview with Reuters in Zurich, Switzerland March 6, 2018. REUTERS/Arnd Wiegmann

(Reuters) – Logitech International SA raised its full-year profit outlook on Tuesday, after strong growth in its gaming hardware business helped the computer peripheral and mobile speaker maker beat third-quarter expectations.

The Swiss-U.S. company got a boost from strong sales of its gaming products such as superfast keyboards, headphones and computer mouse used in multi-player online games like League of Legends and Fortnite.

Logitech’s diverse portfolio drove double-digit growth across gaming, video collaboration and creativity & productivity, said Chief Executive Officer Bracken Darrell.

The company now expects its fiscal year 2019 non-GAAP operating income to be between $340 million and $345 million, up from its previous guidance of $325 million-$335 million.

Logitech expects sales to grow between 9 percent and 11 percent in constant currency during the fiscal year, which runs to the end of March.

The company had raised its guidance earlier in July, following big increases in sales of its products used in video collaboration, gaming and for computer tablets.

For third quarter ended Dec. 31, net income rose to $112.8 million, beating forecasts of $99.3 million in a Reuters poll of analysts.

Net sales rose 8 percent to $864.4 million in the quarter, traditionally Logitech’s biggest sales period, beating forecasts of $852 million.

Sales from its gaming business rose 23 percent to 213.7 million.

Reporting by Rishika Chatterjee in Bengaluru and John Revill in Zurich; Editing by Gopakumar Warrier

An Astonishing 773 Million Records Exposed in Monster Breach

There are breaches, and there are megabreaches, and there’s Equifax. But a newly revealed trove of leaked data tops them all for sheer volume: 772,904,991 unique email addresses, over 21 million unique passwords, all recently posted to a hacking forum.

The data set was first reported by security researcher Troy Hunt, who maintains Have I Been Pwned, a way to search whether your own email or password has been compromised by a breach at any point. (Trick question: It has.) The so-called Collection #1 is the largest breach in Hunt’s menagerie, and it’s not particularly close.

The Hack

If anything, the above numbers belie the real volume of the breach, as they reflect Hunt’s effort to clean up the data set to account for duplicates and to strip out unusable bits. In raw form, it comprises 2.7 billion rows of email addresses and passwords, including over a billion unique combinations of email addresses and passwords.

The trove appeared briefly on MEGA, the cloud service, and persisted on what Hunt refers to as “a popular hacking forum.” It sat in a folder called Collection #1, which contained over 12,000 files that weigh in at over 87 gigabytes. While it’s difficult to confirm exactly where all that info came from, it appears to be something of a breach of breaches; that is to say, it claims to aggregate over 2,000 leaked databases that contain passwords whose protective hashing has been cracked.

“It just looks like a completely random collection of sites purely to maximize the number of credentials available to hackers,” Hunt tells WIRED. “There’s no obvious patterns, just maximum exposure.”

That sort of Voltron breach has happened before, but never on this scale. In fact, not only is this the largest breach to become public, it’s second only to Yahoo’s pair of incidents—which affected 1 billion and 3 billion users, respectively—in size. Fortunately, the stolen Yahoo data hasn’t surfaced. Yet.

Who’s Affected?

The accumulated lists seem designed for use in so-called credential-stuffing attacks, in which hackers throw email and password combinations at a given site or service. These are typically automated processes that prey especially on people who reuse passwords across the whole wide internet.

The silver lining in Collection #1 going public is that you can definitively find out if your email and password were among the impacted accounts. Hunt has already loaded them into Have I Been Pwned; just type in your email address and keep those fingers crossed. While you’re there you can also find out how many previous breaches you’ve been a victim of. Whatever password you’re using on those accounts, change it.

Have I Been Pwned also introduced a password-search feature a year and a half ago; you can just type in whatever passwords go with your most sensitive accounts to see if they’re out in the open. If they are, change them.

And while you’re at it, get a password manager. It’s well past time.

How Serious Is This?

Pretty darn serious! While it doesn’t appear to include more sensitive information, like credit card or Social Security numbers, Collection #1 is historic for scale alone. A few elements also make it especially unnerving. First, around 140 million email accounts and over 10 million unique passwords in Collection #1 are new to Hunt’s database, meaning they’re not just duplicates from prior megabreaches.

Then there’s the way in which those passwords are saved in Collection #1. “These are all plain text passwords. If we take a breach like Dropbox, there may have been 68 million unique email addresses in there, but the passwords were cryptographically hashes making them very difficult to use,” says Hunt. Instead, the only technical prowess someone with access to the folders needs to break into your accounts is the ability to scroll and click.

And lastly, Hunt also notes that all of these records were sitting not in some dark web backwater, but on one of the most popular cloud storage sites—until it got taken down—and then on a public hacking site. They weren’t even for sale; they were just available for anyone to take.

The usual advice for protecting yourself applies. Never reuse passwords across multiple sites; it increases your exposure by orders of magnitude. Get a password manager. Have I Been Pwned integrates directly into 1Password—automatically checking all of your passwords against its database—but you’ve got no shortage of good options. Enable app-based two-factor authentication on as many accounts as you can, so that a password isn’t your only line of defense. And if you do find your email address or one of your passwords in Have I Been Pwned, at least know that you’re in good company.


More Great WIRED Stories

Huawei Canada executive leaves post as scrutiny of company grows

NEW YORK/OTTAWA (Reuters) – One of Huawei Canada’s top executives on Friday disclosed he was leaving his post after more than seven years with the Chinese telecommunications equipment maker, which is facing heightened scrutiny over security issues from Canada and its allies.

FILE PHOTO: Huawei Canada Vice President of Corporate Affairs Scott Bradley stands outside after the B.C. Supreme Court bail hearing of Huawei CFO Meng Wanzhou, who was released on a $10 million bail in Vancouver, British Columbia, Canada December 11, 2018. REUTERS/Lindsey Wasson

Scott Bradley disclosed his departure as the company’s senior vice president for corporate affairs in a post on LinkedIn that did not give a reason for the move. He could not immediately be reached for comment.

Huawei Technologies Co is under intense scrutiny in the West over its relationship with the Chinese government and U.S.-led allegations that its equipment could be used by Beijing for spying.

On Friday, sources told Reuters that Poland arrested a Huawei employee and former Polish security official on spying allegations, a move that could fuel Western concerns about the security of the company’s technology.

Bradley was a key public spokesman for Huawei Canada, which has been under the spotlight since Canadian authorities in December arrested the chief financial officer of its parent company at the request of the United States.

Huawei is a major supplier of telecommunications equipment in Canada, where Bradley had served as chair of the 5G Canada Council, a national trade group promoting adoption of next-generation high-speed wireless technology.

The Canadian government last year launched a new security review of Huawei’s 5G technology, which at least two major Canadian carriers have said they plan to test in small-scale pilots.

Bradley will serve as special adviser to the company, assisting the company “as required,” Huawei Canada President Eric Li said in a memo to staff that was obtained by Reuters.

“We are saddened to see him leave but grateful for the tireless work he has put in to help us grow our brand and public image, and build various relationships with government,” Li said.

Bradley confirmed on LinkedIn that he intended to advise the company.

“As we start 2019, it is time for a change,” Bradley said in the post. “I continue to believe passionately in all of the values our Canadian team represents, and I believe that our team is one of the most innovative in the world.”

Jim Finkle in New York and David Ljunggren in Ottawa; Editing by Tom Brown

Ockam provides easy to deploy identity, trust, and interoperability for IoT developers

Featured stories

Maybe you’re not going to buy a $7,000 smart toilet, but the Internet of Things (IoT) is on its way to your home and office. Silly gadgets aside, IoT device inventors face many programming challenges. It’s hard adding identity, trust, and interoperability to IoT hardware. The Ockam startup will change this for the better.

Customers want IoT devices to be trustworthy and work with other vendors gear. Programmers know that’s easier said than done. Many IoT vendors’ answer is to not bother to add sufficient security or interoperability to their gadgets. This leads to one IoT security problem after another.

Ockam’s answer is to make it easy to add identity, trust, and interoperability by providing programmers with the open-source, Apache-licensed Ockam Software Developer Kit (SDK). With it, developers can add these important features to their devices without a deep understanding of secure IoT network architecture or cryptographic key identity management.

Also: Internet of Things (IoT): Cheat sheet TechRepublic

This is provided by a Golang library and a Command Line Interface (CLI). Additional languages, features, and tools will be supported in future releases.

Once properly embedded within a device’s firmware, the Ockam SDK enables the device to become an Ockam Blockchain Network (OBN) client. OBN provides a decentralized, open platform with high throughput and low latency. It also provides the infrastructure and protocols underpinning Ockam’s SDK.

Devices are assigned a unique Decentralized ID (DID). The DID is cryptographically secure identities for an array of entities. While used primarily to identify devices, it can also represent people, organizations, or other entities. With this, developers can codify complex graph relationships between people, organizations, devices, and assets.

Once on OBN, devices can can share data as verified claims with any other registered network device. This is secured by Ockam-provided, blockchain-powered Public Key Infrastructure (PKI).  Devices can also verify data that they receive from other registered OBN IoT devices. OBN is free of charge for developers until its general availability release later this year.

This may all sound complex, but the complexities are hidden away behind its serverless architecture: A developer only needs the SDK. OBN’s complications, such as PKI, are abstracted away.

Some of Ockam’s structure may sound familiar. That’s because it’s taking a page from Twilio. Just like Twilio provides a common layer between telecommunications infrastructure and developers, to make it easy to incorporate messaging into applications, Ockam provides a “common rail” for adding secure identify to IoT devices. With a single line of code, Ockam enables developer to provision an immutable identity to a device.

Also: 7 ways to use Alexa around the office CNET

OBN is built on Microsoft Azure confidential compute. Microsoft Engineering is a dedicated technical partner, and Ockam CEO Matthew Gregory led Azure’s open-source software developer platform strategy.

Together, Ockam and OBN provides a backbone for the next generation of high performance IoT ecosystems. Ockam is interoperable and built for multi-party IoT networks. So, in theory, your devices will be able to work with other vendor’s gear.

According to Yorke Rhodes, co-founder of blockchain at Microsoft Azure: “Ockam’s team is best in class, bringing together skills and experience in enterprise, IoT, secure compute, scale-up, and Azure. We are thrilled to be collaborating with them on their innovative solution for the IoT developer community.”

I don’t know about “thrilled,” but I do know if I were building IoT devices, which I want to work and play well and securely with other devices, I’d be working with Ockam. It promises to make high-quality IoT development much easier.

Related Stories:

Start-ups hopeful as China readies Nasdaq-style tech board

SHANGHAI/HONG KONG (Reuters) – China’s ambitions for a Nasdaq-style board for start-ups have galvanized the country’s tech companies who are hopeful they can sidestep complex IPO hurdles and access easier funding.

FILE PHOTO: Investors look at computer screens showing stock information at a brokerage house in Shanghai, China September 7, 2018. REUTERS/Aly Song/File Photo

The surprise announcement for Shanghai’s planned “technology innovation board” by President Xi Jinping in early November paves the way for a lower listing threshold, potentially scrapping a requirement that aspiring companies must be profitable.

For Beijing, the move is seen helping to counter U.S. curbs on its technology companies and may draw the next generation of high-tech firms to list at home. Some of China’s best known brands such as e-commerce firm Alibaba Group and gaming and social media giant Tencent Holdings have listed in New York and Hong Kong.

Last year, Chinese companies raised $64.2 billion globally – almost a third of the worldwide total – via initial public offerings (IPOs), but just $19.7 billion of that came from listings in Shanghai or Shenzhen, according to data from Refinitiv, compared with $35 billion in Hong Kong.

The intense interest in the new board, even before rules are finalised, underscores the significance to private Chinese companies of having an alternative source of funding.

“Our business is in the field of network information security and coding technology, and we’re regulated by the (Communist) Party. So we cannot receive foreign capital or list overseas,” said Tan Jianfeng, Chairman of PeopleNet.

“The new board is a very good (funding) opportunity for companies like us, and we have plans to list there.”

According to the Hurun Report, China had 181 unicorns at the end of September, surpassing the United States as the country with the biggest number of start-ups worth at least $1 billion.

SPRING IS COMING

Since plans were unveiled by President Xi, officials have been scrambling to draw up detailed rules, expected to be published this month, with the aim of launching by June, the 21st Century Business Herald reported.

The new tech board, to be set up by the Shanghai Stock Exchange, will include a registration system – in effect removing official control of the IPO process that has for years produced a stop-start pipeline of listing candidates with a waiting time measured in years not months.

The board is also expected to allow listings from companies yet to make a profit – a common practice in tech-heavy markets such as New York and, more recently, on Hong Kong’s main board.

“For the venture capital industry, spring is coming. But I hope the spring is enduring, not a short-lived one,” said Andrew Qian, chairman and CEO of New Access Capital, a Shanghai-based investment and financial advisory firm.

    Qian has recommended 11 prospective firms, or a sixth of his portfolio, to the Shanghai government, which will pick the city’s first batch of candidates to go public on the new tech board. Forms have been distributed to start-ups by various government bodies probing their appetite to list.

The excitement, however, has stirred memories of China’s previous tech-friendly efforts that drove Shenzhen’s tech-heavy ChiNext board to dizzying heights in 2015 before the broader market’s spectacular collapse.

But unlike its rival boards, ChinNext continued to slide and has lost around 38 percent over the past two years, compared with about 11 percent for the blue-chip CSI300.

The New Third Board, an over-the-counter market for start-ups begun in 2006, has also fallen out of favour with investors and is struggling to generate interest as liquidity runs dry.

Bankers said IPO candidates may still be carefully scrutinized to protect investors.

“You need to pay attention to a company’s core technologies…if a pig farmer wants to list on the tech board, you need to screen it out, unless it makes epoch-making breakthroughs in breeding technology,” said Liu Guangfu, investment banking director at TF Securities.

Zhang Yu, executive director of China Equities at UBS Asset Management, warned that stocks on the board could easily become the target of pump-and-dump, because “many investors in China are not mature enough”.

DaoCloud, a Shanghai-based cloud computing start-up that has not yet broken even, said the new board meant it was considering an earlier IPO. It had planned to list around 2021 on ChiNext, which typically requires two consecutive years of profit.

“The launch of the new tech board is good news to us,” said Roby Chen, founder and CEO of DaoCloud, but he too is wary of bubble risk as many provincial governments begin mobilizing start-ups to prepare for listings on the new board.

    “I’m quite worried. In China, when something like tech becomes a hot topic…it’s easy to become bubbly.”

Editing by Jennifer Hughes and Jacqueline Wong

Before You Quit Your Day Job for a Startup, Make Sure You Can Answer These 7 Questions

I’ve heard pitches from more than 20,000 entrepreneurs over the last two decades.  The top question I’m asked (other than “Will you invest in me?”) is, “Is my idea any good?”

Wantreprneuers from far and wide track me down to get my blessing before they quit their well-paying job to start a startup. Over the decades and in conjunction with other angel investors and venture capitalists, I’ve developed a seven-question list that potential founders should ask themselves before coming to ask me.

If your answer to all seven of these questions is “yes,” your idea is probably excellent. If not, you have some work to do.

1. Are you obsessed with the industry, customers, or problem?

Successful founders love what they do. They would learn about the industry, customer segment or problem even if they weren’t being paid. To be successful, you must be obsessive about your startup opportunity.

The difference between obsessive and caring is quite large. Caring is a given, and it’s not enough. Being obsessive means that you think about something dozens a time a day. If you aren’t obsessive, you won’t be able to accumulate the insights needed to garner strategic advantage–insights that only come from focusing on something for thousands of hours. 

2. Can you build the solution? 

Ideas are worthless until combined with relentless execution. You must be able to execute both your idea and your product. At the very least, you need to be able to create a prototype or minimum viable product, something you can get into the hands of early adopters and generate early proof of concept traction.

3. How elastic is demand?

Pain killer or vitamin? Cost saver or revenue generator? The best opportunities solve unmet market needs where demand is inelastic. This yields better margins in the long run and quicker traction in the short run.

Your opportunity must satisfy a need, not a want. A need is something you can’t live without. Air, water, and food are the classic examples. A want is something you can live without, like fancy shoes or expensive cars.

As the price of wants go up, demand for them peters out. Startups that satisfy needs will always have easier times attracting early adopters and generating revenue. 

4. Is the market large and growing?

Today, the market for anti-hacker security is hot. The market for thoroughbred horseshoes is not. Why focus on a small win? You’re investing your blood, sweat, and tears. Make sure the win is worth it.

By the way, the risk is actually much greater when you focus on a niche. Since you have less pool to swim in, you have less chance to learn through iteration. Always focus on bringing your solution into a market that is large and growing. It’s OK to start with a niche, but there must be lots of room to grow.

5. Are you exponentially better?

If you’re entering an extant market, you’re automatically at a disadvantage with sunk costs and less brand recognition than your competitors. To overcome that, you must be ten times faster, cheaper, stronger, and lighter than every other company in your industry to get people to switch from incumbent products.

Netflix killed Blockbuster by offering ten times the quantity of content at one-tenth the cost. Your solution must be exponentially better than any alternatives.

6. Are you ready to go all in? 

Design thinking and the Lean Startup method allow you to start most businesses as a side hustle. Your long-term goal still needs to be full time, all the time, all in. No one has ever changed the world with half measures.

7. Do you have frictionless access to early adopters?

Early adopters are customers who have the problem you solve, and are currently trying to solve that problem with a radically less efficient method. Before spell-check software, we used third party proofreaders, which were ten times more expensive and time consuming.

To be successful, you need a clear and low cost to get early adopters and turn them into your beachhead. Make sure you’re able to get your product directly to customers.

Samsung, Huawei supply majority of own modem chips, Qualcomm says

SAN JOSE, Calif. (Reuters) – The two largest smart phone makers in the world supply a majority of their own modem chips to help their devices connect to wireless data networks, according to evidence presented at an antitrust trial for chip supplier Qualcomm Inc (QCOM.O).

FILE PHOTO: The logo of Qualcomm is seen during the Mobile World Congress in Barcelona, Spain February 27, 2018. REUTERS/Yves Herman/File Photo

A trial between the U.S. Federal Trade Commission and Qualcomm kicked off in a federal courtroom in California on Friday, with the regulators arguing that Qualcomm engaged in anticompetitive patent licensing practices to preserve a monopoly on modem chips. The case is being closely watched because it may shed light on the likely eventual outcome of the global legal battle between Apple Inc (AAPL.O) and Qualcomm.

Apple has alleged that Qualcomm engaged in illegal business practices, and Qualcomm in turn has alleged Apple violated its patents, scoring victories in China and Germany last month.

Qualcomm has argued its licensing practices follow long-established industry norms and that it charges broadly the same licensing rates that it had for many years before it ever started selling chips.

That has become a big market for Qualcomm, which controlled 59.6 percent of the $15.3 billion market for 4G modem chips in 2017, according to IDC’s Phil Solis, who studies mobile chips for the research firm.

But Bob Van Nest, an attorney representing Qualcomm in the case, also sought to show that Qualcomm is not dominant in the world’s two biggest handset makers.

During opening arguments, Van Nest’s presentation said that Huawei [HWT.UL] internally sources 54 percent of the modem chips it puts in its devices and gets only 22 percent of its modems from Qualcomm, with the remainder coming from other unnamed makers. Samsung (005930.KS) internally sources 52 percent of the modem chips it uses, with 38 percent from Qualcomm and the rest from other makers, according to the presentation.

Huawei and Samsung did not immediately respond to a request for comment. Also, the FTC’s case centers not on the overall modem chip market – which includes slower chips that go into cheaper handsets – but rather the market for speedy “premium” chips where Qualcomm is among the only options.

Huawei and Samsung are both large diversified technology corporations that make many other products aside from premium-priced smart phones. Huawei’s HiSilicon unit supplies the chips for its high-end phones such as its Mate and P series. Samsung’s chip division supplies processors and other components for many of its handsets and is also a dominant global supplier of memory chips beyond its own products.

The two firms are also Apple’s fiercest rivals in the market for premium smart phones costing $700 or more. Apple depends entirely on Intel Corp (INTC.O) and Qualcomm for modem chips, though the iPhones released in 2018 use Intel modems exclusively.

Technology news publication The Information last month reported here that Apple was designing its own modem chip, citing Apple job listings and a source briefed on Apple’s plans. Apple declined to comment on its plans.

For the second quarter of 2018 – the most recent figures available from IDC – Apple was the third-largest smart phone supplier by volume, with Samsung and Huawei in first and second place, respectively.

Reporting by Stephen Nellis; Editing by James Dalgleish

The Simple Engineering That Will Keep NYC's L Train Rolling

Ever since the last of the brackish water slithered out of the Canarsie Tunnel in the aftermath of 2012’s Superstorm Sandy, New Yorkers have been bracing for the pain. Public transit officials have long warned that the water damage to the 94-year-old tunnel, full of just-as-old subway equipment, would eventually require a long, painful, deeply inconvenient rehabilitation. That’s the tunnel that runs under the East River, carrying many of the L subway train’s 400,000 daily riders from popular Brooklyn neighborhoods like Williamsburg and Bushwick into Manhattan.

The surgery was scheduled for April 2019, when the stretch of L train that takes New Yorkers across Manhattan and into Brooklyn was scheduled to shut down for a 15-month repair job. Ahead of what they officially deemed the “L-pocalypse,” local officials created piles of plans to ramp up bus service, encourage biking, and run new ferry routes, and everything else they could think of to keep all those commuters from taking to cars and making already bad traffic fully catastrophic.

Those plans (as well as wilder ones proposed by concerned citizens) became a lot less necessary Thursday morning, when Governor Andrew Cuomo called a surprise press conference to proclaim that no, the L train won’t close completely, and yes, it will still be fixed for the future.

The new plan for the next few years is to keep the train open and running as normal during weekdays, whilst doing repairs on nights and weekends (the details remain fuzzy). The board of the Metropolitan Transportation Authority, which runs the subway, has yet to adopt the new plan, which was proposed by a commission of half a dozen engineers based at Columbia and Cornell Universities that Cuomo assembled last month, two years after the decision was made to close the line. But the agency put out a press release Thursday afternoon saying it “accepted the recommendations.”

Curious politics are clearly at work here, but New Yorkers are unlikely to care, as long as the subway keeps running. And if it does, it’ll be thanks to two bits of subway engineering infrastructure: benchwalls and cable racking.

Let’s start with benchwalls. If the train stopped in the tunnel and you had to get out, these are the stretches of concrete, running along each wall and resembling big benches, that you’d be walking on. Facilitating emergency exits is one of their main functions—without them, you’d have to jump out of the train, onto the ground and risk hitting the third rail. Benchwalls also hold most of the goodies that make the subway work, including the power and communications cables. When workers were building the line, which started service in 1924, putting the cables in the concrete was the best way to protect them from things like hungry rats and water damage.

Over the past century, those benchwalls have started to deteriorate, a process accelerated by the flooding from Hurricane Sandy. Explaining its full shutdown plan in 2016, the MTA said the tunnel’s bench walls “must be replaced to protect the structural integrity of the two tubes [east and west] that carry trains through the tunnel.”

Replacing these things involves jackhammering away concrete, removing the rubble, replacing the cabling inside, setting new concrete, and having it dry. It’s work you can’t do overnight or on weekends, because any one section takes several days. And you can’t run trains without leaving a walkway to lead people to safety in an emergency.

The new plan involves giving those benchwalls a bit of a demotion. They’ll still be used for emergency egress, but they won’t hold the cables anymore. Instead, the L train will use a “cable racking” system, in which new power and comms lines will be strung up and attached to the sides of the tunnel, above the benchwalls. Turns out, their protective jacketing has advanced since the Prohibition Era. “We’ve had tremendous progress in materials,” says Peter Kinget, a Cornell electrical engineer who served on the panel. , If the jacketing catches fire, it doesn’t produce noxious fumes. It’s impervious to vermin and H2O, obviating the need for the concrete armor. The workers will also shore up the sections of benchwall that are crumbling with fiber reinforced polymer, Cuomo says, leaving the old, inactive cables entombed inside.

That decoupling of the benchwall’s duties is a big deal, because it makes the work much easier to execute. You can cut back service at night and on weekends (by running trains in just one of the tunnel’s twin tubes) and have workers slip underground, setting up the racks and new cables segment by segment. During normal hours, the train operates as it usually does, pulling power from the cables already in the benchwalls. Once the work is done, the MTA will switch the trains over to the new set of cords.

Cable racking has been used for new metro lines in London, Hong Kong, and the Saudi capital of Riyadh, Cuomo says. This would be its first use in the US, and the first time it’s been used to fix up an existing line.

“It’s a clever solution,” says Matt Cunningham, a civil engineer and global director of infrastructure for Canadian engineering firm IBI. It’s cheaper and easier than replacing all the cable-filled benchwalls, and it’s a proven method. “It’s going to work.”

Which brings up the unanswered question of why this idea is just surfacing now. Why not before the MTA decided on the full shutdown, then spent two years preparing for it? It makes Cuomo the politician who averted the traffic-spewing L-pocalypse—but it also makes one wonder why he didn’t come to the rescue earlier. (He’s been governor of New York since 2011.) In his press conference, he presented this as new solution, which is true if you compare it to the techniques used to build the subway in the previous century, but not if you take a slightly narrower view. “It’s not new technology that’s only now become available,” Cunningham says.

Of course, limiting service during nights and weekends to make this fix will still inflict some suffering, and the MTA has a terrible record of mismanaging this sort of operation, so any promises about deadlines or costs should be doubted. “You’re not getting a root canal on five teeth, you’re getting a root canal on three teeth,” says Allan Rutter, of Texas A&M’s Transportation Institute. “There’s gonna be pain.”

In infrastructure as well as in dental surgery, you’ve got to accept some drilling and discomfort. But less is definitely more.


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Netflix Just Made a Truly Insane Announcement on Twitter. (But Wait. It Might Actually Be Brilliant)

Now, Netflix has another big tweet — this time making an announcement about the insane social media challenge that the Netflix movie spawned. And if the first time people reacted with disbelief, this time they’re reacting with awe, because it’s truly brilliant.

The movie, if you haven’t seen it, stars Sandra Bullock, and involves some kind of supernatural power that tracks her and her children. The only way to escape it, is to blindfold themselves and rush to safety.

This being 2019 (happy new year by the way), if you combine a viral piece of entertainment with a weird physical twist, you get a challenge that goes viral: people doing (or pretending to do) all kinds of dangerous things while being blindfolded, and posting them to social media. 

Emphasis on dangerous, of course. My colleague Chris Matyszczyk has a perfect example.

Netflix, naturally, took to Twitter (where else?) to warn people to dial it back:

Can’t believe I have to say this, but: PLEASE DO NOT HURT YOURSELVES WITH THIS BIRD BOX CHALLENGE. We don’t know how this started, and we appreciate the love, but Boy and Girl have just one wish for 2019 and it is that you not end up in the hospital due to memes.

Now, here’s the thing. There’s viral, and then there’s “Netflix tweets about it viral.”

Because as The Washington Post reports, some of the #BirdBoxChallenge videos didn’t actually have that many views until after Netflix posted its tweet.

But once Netflix said things were dangerous: Look out.

Within 24 hours after the tweet, the Netflix warning has another 54,000 retweets and 271,000 likes — all of which adds even more publicity to the big hit the company already has. 

It all adds up to something pretty amazing. On the one hand, Neflix has done the super-responsible thing and asked its viewers not to behave dangerously while posting online homages to Netflix’s super-popular movie.

And on the other hand, Netflix is also pouring gasoline on the fire and ensuring that even more people pay attention to the challenge, the movie, and Netflix itself.

I’ve reached out to Netflix to ask for context. No reply yet. While we wait, let’s just reflect on the challenge, the tweet, and the fact that insanity and brilliance so often seem to be two sides of the same coin.

That, and also how whomever posted the tweet for Netflix started out by saying, “Can’t believe I have to say this…” instead of the corporate “we.” I kind of love that.

Saudi Arabia Won't Be the Last Country to Censor Netflix

When news broke on New Years Day that the Kingdom of Saudi Arabia had censored an episode of the Netflix series Patriot Act with Hasan Minhaj that’s critical of Crown Prince Mohammed bin Salman, it wasn’t a surprise. An outrage, yes. But not a surprise.

Saudi Arabia has a long history of censorship and human rights abuses, and the anti-cybercrime law the kingdom says the episode violated dates back to 2007. And though the rise of bin Salman was greeted by the US and Silicon Valley with enthusiasm, his reforms (women are finally allowed to drive) have come alongside continued abuses (hundreds of women “disappeared” for their activism). But the Netflix incident is also indicative of the pressures tech companies face beyond Saudi Arabia amid a global trend toward digital authoritarianism that shows no sign of slowing.

Minhaj, an American comedian, devoted an episode of his show to the Saudi regime on October 28, weeks after the murder of journalist Jamal Khashoggi at its embassy in Istanbul. The CIA later concluded that bin Salman directly ordered the hit on Khashoggi. “But he has been getting away with autocratic shit like this for years with almost no blowback,” Minhaj says during the show, and suggests that after years of human rights abuses, it’s finally time for the US to reassess its relationship with the strategic ally.

The episode was available to watch in Saudi Arabia for two months, until Netflix took it down last week in response to a request from the country’s Communications and Information Technology Commission. Officials allege that the episode broke Article 6 of its anti-cybercrime law, which criminalizes the “production, preparation, transmission, or storage of materials impinging on public order, religious values, public morals, and privacy, through the information Network or computers.” The episode is still available to watch on Netflix outside Saudi Arabia.

“Free speech and the free flow of information are heavily restricted in Saudi Arabia by way of laws, institutional and cultural norms, and various other mechanisms of social control,” says Ellery Biddle, advocacy director at the free speech nonprofit Global Voices. “There have been robust efforts to restrict public knowledge and perception of the Khashoggi case, so it’s not surprising that this happened.”

Critics admonished Netflix for complying with the kingdom’s request to take down the comedy show. “By bowing to the Saudi Arabian authorities’ demands, Netflix is in danger of facilitating the Kingdom’s zero-tolerance policy on freedom of expression and assisting the authorities in denying people’s right to freely access information,” Samah Hadid, Amnesty International’s Middle East director of campaigns, said in a statement.

Netflix defended its action, pointing out in a statement that it only took down the episode after the kingdom sent the company “a valid legal request.” Netflix, like most American tech companies, goes to great pains to comply with local laws in order to operate globally.

The situation with Saudi Arabia is a notable portent for the near future if the rest of the world continues its slide toward digital authoritarianism. That slide, a decade in the making at least, is becoming precipitous. A recent report from the nonprofit Freedom House noted that at least 17 countries have proposed or passed regulations curbing free speech online since June 2017. Egypt passed a law banning any websites “deemed to threaten national security,” and people who visit such sites can be jailed for up to a year. Iran, where Netflix became available only two years ago, strengthened its internet censorship laws last year, too, with new rules about what can be posted in messaging apps. Tunisia introduced a bill to criminalize defamation online. The list goes on. All of this leads to an internet that is less free and more balkanized, where each nation has different rules—and where companies like Netflix will face the question of how, or whether, they can ethically operate in some markets.

“It’s now clear that as digital streaming services launch in new markets, governments will treat them in the same manner they regulate the local film or television industry,” says Adrian Shahbaz, lead author of the Freedom House report. “That means that in countries where the authorities have little regard for freedom of expression, companies will come under increasing pressure to censor political, social, or religious content they wouldn’t normally worry about under US or European law.”

While Netflix’s removal of the Minhaj episode has drawn criticism, it is not the first time the company has taken down shows in certain countries. It removed three episodes of different shows in Singapore that allegedly violated a law against positive portrayals of drug use. But generally, Netflix says, the company makes all its global originals available in every country where it operates and only removes shows if legally required to do so in the jurisdiction.

Shahbaz says that Netflix’s response to the Saudi takedown request was in line with an emerging set of best practices for companies dealing transparently with such censorial pressure. “They should state precisely what law they are complying with, what piece of content is being removed, and what steps they’re taking to ensure the action has the smallest possible impact on human rights,” he says. “From what I can tell, Netflix has done those three things fairly well. They’ve stated the law and episode in question and complied by taking the most minimalistic action available to them—censoring only that one episode and only within Saudi Arabia.” He also notes that the company left the episode up on its YouTube channel.

If Netflix didn’t comply with such requests, the site could be blocked entirely. “Unlike in a democracy, where a company can appeal an unjust order using the courts, companies face far fewer options in a place like Saudi Arabia: essentially, either comply or risk being banned,” notes Shabhaz. That’s obviously bad for the company’s bottom line, but it would also curtail access to information. Saudi Arabia, for instance, had a prohibition on all public movie screenings until just last spring (it lifted the 35-year ban just in time to screen Black Panther), making Netflix a crucial way for people to watch television, movies, and documentaries. “On balance, I think it is more important for Saudis to have some access to the service than none at all,” says Biddle.

That kind of complex trade-off is what companies like Netflix face when navigating local laws around the world. (It’s even trickier for social media companies, who don’t have Netflix’s control over the content uploaded onto their sites, but still have to comply with local laws.) Netflix doesn’t operate in China, since it has not been able to square its platform’s model with China’s strict content rules.

More than an issue of Netflix acquiescing to Saudi pressure, this incident underscores the power and appeal of local laws that determine the kinds of materials allowed online. Although the takedown appears to have drawn more attention to Minhaj’s criticisms—“Clearly, the best way to stop people from watching something is to ban it, make it trend online, and then leave it up on YouTube,” the comedian tweeted—the impact of such laws goes far beyond a single episode of a Netflix show being forced offline. People are thrown in jail, silenced, even murdered; they’re prevented from accessing vital information. “The Saudi government only confirmed what Hasan Minhaj so brilliantly argued—that the crown prince’s so-called ‘reform agenda’ is smoke and mirrors at best, or as is increasingly becoming clear, actually represents a further deterioration of political freedom in the country,” Shahbaz says.

In what would be his final column, published posthumously in The Washington Post, Jamal Khashoggi wrote, “There was a time when journalists believed the Internet would liberate information from the censorship and control associated with print media. But these governments, whose very existence relies on the control of information, have aggressively blocked the Internet.” The title of his column: “What the Arab World Needs Most Is Free Expression.”

Countering oppressive regimes and laws requires collaboration between civil society, tech companies, and democratic nations willing to fight for digital freedoms. For the US to take the lead in advocating for an open internet, it would need to do what Minhaj asked in his show: stop turning a blind eye toward the abuses of an ally.


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The Day Apple Dreaded: iPhone Sales Falter in China and the Company Revises Sales Down

Trading on Apple shares was halted as the company warned of much lower sales than the guidance it had issued just two months ago. A punishing holiday season turned into lower than expected iPhone sales, which are the economic engine of the company. After-hours trading immediately sent shares down by more than 7 percent.

The guidance issued at the company’s last earnings announcement was for revenue between $89 billion and $93 billion, expenses of $9 billion to $9.1 billion, and gross margins between 38 percent and 38.5 percent.

The new guidance pegs revenue expectations at $84 billion, sharply below the low end of the previous estimates. Gross margin will be roughly 38 percent, at the low end of the previous range. Total expenses will be about $9.25 billion, or above prior estimates.

The earnings announcement for the holiday quarter won’t happen for a few weeks yet.

According to a letter from Tim Cook to investors, there are multiple reasons for the cut. He said that the company knew the timing of its iPhone launches could be a problem, shifting back as they did by a fiscal quarter. The number of launches was complex and caused logistics problems getting everything built and shipped. In addition, a strong dollar made overseas sales costlier for buyers.

But those were constraints on the top end of sales. The big issues were “expected economic weakness in some emerging markets.” Specifically, the big slowdown was in Greater China. “In fact, most of our revenue shortfall to our guidance, and over 100 percent of our year-over-year worldwide revenue decline, occurred in Greater China across iPhone, Mac and iPad,” the letter said.

At the heart was a slowing economy in China, in part likely because of the trade war with the U.S., but also a result of purely internal problems in the country. Whatever the balance, the result was “fewer iPhone upgrades than we had anticipated.”

Cook went on and tried to put some shine on the situation, pointing to almost 19 percent year-over-year growth in the combination of services, Macs, iPads, and wearables and other products. But while good for the future, that doesn’t matter.

Apple faces what happens to many businesses, particularly smaller ones. They become prisoners of one product line or a particularly big customer. When that happens, all you can do is try to diversify, because the day will come when the source of money trips and what was a profitable dependence begins to hit financial results.

Apple has tried to do that, but none of the new growth comes close to the magnitude of the iPhone contribution. And China was supposed to be the new engine of growth when none of the other product lines–iPads or Watches–showed itself possessing the potential once shown by the company’s smartphones.

The 10,000 Foot View of Your Business You Must Take Before Picking a Software System

That’s so vague, and that’s exactly the reason why so many companies struggle to make meaningful process working “on the business”, year after year. Let me help to clarify these confusing terms, and give you the direction that you need to make a dent this year.

The “system” is the tool that you use to get the job done. It could be a big piece of machinery, but for most of us, it is the different software tools that your company runs on.

“Processes” are the sequence of steps that you and your team take to do the work — the actions, regardless of the system. The problem is, too many entrepreneurs start with the system.

Instead of focusing on how you manage a client project, you focus on how the project management tool works.

You can get lost in a sea of software, and end up jumping ship from one to the next chasing features that may or may not matter to your business. But, if you understand your process first, it’s like going to the grocery store with a list, and not an empty stomach.

I was working with a retail store once that used spreadsheets to manage their inventory, credit card terminals for each sale, PayPal for online transactions, handwritten sheets for their packing lists, and a bloated database tool for customer information. Instead of stepping back and looking at the business as a whole, they solved one problem at a time with another software, creating a complicated mess of their operations.

It shouldn’t be so hard. Whatever industry you’re in, here’s how to fine tune your process first to make sure you’re investing in something that can stick. 

Map your process.

Break out the sticky notes! I’ve banned those little yellow clutter-causers from my office, except for when we’re working on processes. Then, we break them out of their special hiding place and go nuts!

If you don’t have sticky notes, use a whiteboard or a blank sheet of paper, and draw each linear step in your product fulfillment or service delivery process. Each step (or sticky) should represent a significant step in your process. So, combine small things like “open this URL” and “go to this page” and “enter this password” into something broader like “log into online store.”

Your core company process should stretch from how you attract prospects, close a sale, onboard the customer, deliver the product or service, collect payment, and and continue to engage the customer. 

Find your bottlenecks.

The simple act of writing out the steps of your process is bound to surface some inefficiency. Where in your process are there bottlenecks — or slow downs — today? Where are there too many handoffs where information or tasks could flow more seamlessly from one person or department to another?

Now, you don’t need to fix your entire process in one sitting. That isn’t the point. But, you do want to identify where you have some work to do. These inefficiencies or areas for improvement could be supplemented or solved with the right system. You are building your shopping list. 

Become a ‘manual’ master.

A client hired me once wanting to build a custom software for a new way to facilitate meetings. The idea was full of assumptions about how the users would behave, and what problems they were trying to solve. 

Instead, I suggested that he use index cards to replicate the functionality manually, and offline, for a full month before we quote out the software. That way he could validate some assumptions before investing a dime in a custom software project. The idea was dead a weak later, and he saved a lot of money. 

Similarly, think of the software tools and systems that you invest in a way to improve the efficiency of your manual process, not a gamble on a brand new, untested way to work.

Scale with a system.

Now, with a proven manual process and a wish list of requirements, you are ready to go system shopping. 

It’s easy to get overwhelmed by the thousands of tools available. If you’re software shopping, check out review sites like Capterra an G2Crowd, or maker communities like Product Hunt to see how each system is differentiated before diving into demos. 

With hardware, consider renting a device before making a big purchase, or talking to another customer that is successfully using the equipment. 

The system you ultimately select should increase your capacity by eliminating bottlenecks and making your proven process more efficient. Your process shows you generally how to get from point A to point B, like a path through the woods. As you test that process, the “path in the woods” gets more and more defined, and perhaps you invest a little in clearing the leaves and branches, or building stairs on a steep hill. 

When do decide to build a highway from point A to point B — your system —  you should be confident in the path, and eager to increase the traffic down the route.