tv Bloomberg West Bloomberg October 31, 2014 1:00pm-2:01pm EDT
>> live from pier three in san francisco, welcome to "bloomberg west," where we cover innovation and technology, and the future of business. i am emily chang. first a check of your bloomberg top stories coul. unexpectedlyding drop as incomes rose at the slowest rate of the year. decreasedxpenditures .2% last month. weaker than any economist rejected in a bloomberg survey. luxury carmaker ferrari has a fine for not
disclosing the early morning reports required by the u.s. -- earlyt since 2011 warning reports required by the u.s. government since 2011. is planning to develop in the u.s. markets. they have held talks on their plans to develop with rogers communication. currently it to the streets online via its own website and youtube -- distributes online via its own website and youtube. the latest funding round puts
slack valuation at $1.1 billion. now to our lead. losing a key member of its original team. rubin is leaving google to create a startup in hardware products. to wishce says i want and the all the best with what is next. with android he created something truly remarkable with a billion plus happy users, thank you. his latest role at google was to lead a series of robotics acquisitions, including boston dynamics, and mecca robotics. joining us in the studio is the a company that
helps with recruiting efforts for many silicon valley companies above from facebook to square. always good to have you on the show. cory johnson as well here. toseemed like he was going ofd this incredible new area google, robotics, but others say he was on his way out. an entrepreneur, he was able to do entrepreneurial things at google. but to be at a big company for nine years is hard. so nothing is to go back to his roots and help to start and excel right companies. >> does this reflect on the google robotics mission to go do things seem to be not going so well? in some ways, hardware is the new software. mast was bought by google. you have oculus. by facebook --
bought by vought facebook. >> when you see a move like that , does that mean a lot of the other lieutenants are going to start to disappear? is tough tok -- it say. a turnover at top management can mean that other people will live, but i do not get the sense that this is driven by turmoil, as much as by andy's desire to get out and grow. do you get the sense there is a broader management shift happening at google? a lot of these people have been there since the very beginning. >> google is a big company. they have been more innovative about any other company and the road.
but that being said, there is a lot of action at the startup level. there are a lot of companies doing big things with small amounts of capital. you do not need to be at google to be at the cutting edge of innovation. >> is there a timing around this, a seasonality? -- is hedge fund is miss miss, if people wanted to make money, they quit their jobs at october. is there a seasonality to this as well? >> i am not sure but i knew that google does a better job of comforting their topic executives. very few companies can you be an engineer and make that company a shoe print the opportunity at google, they have a very smart team that looks at patient. they put more time and energy into thinking about it than any other company but i do not know of there is seasonality, but they have fought through that. >> where we going to see most of the movement in the next year? >> in terms of talent moving
around, there is still a huge amount of energy in the startup space. you're going to see people who are going to start companies and the starting accelerators. a hardwareing holde excel reader, which totally makes sense -- accelerator, which totally makes sense. i think google is smart, and they were compensated for that. the not think that would be reason that any rubin would leave. next the right amount of money -- >> it was not a massive acquisition when android was acquired. i am sure that they paid him. always great to have you on the
this is "bloomberg west," live on bbg television and streaming on your phone, tablet, and at bloomberg.com, now on apple tv and amazon fire tv. there has been another management shakeup at twitter. after just six months on the job from the vp of consumer products has been replaced. this is just one of many executive shuffle over the last year. joining us to discuss the .hakeup is ryan sarver
close to the very full set twitter. what happened here -- to the at twitter. what happened here? >> it has been a little bit misreported. he is going to continue to be vp of consumer products. he is taking over to make sure that consumer and revenue are aligned and working together in a cohesive strategy. spoke with kevin last week as twitter was making its big push to developers with the new products. take a look at what he had to say about his vision. synonymoushas been
with the consumer application, and that will still be a major focus for us. that has not changed in the application reaches every corner of the world, and we built a growing business around it. but this is the next step for twitter. this is becoming a key player in the mobile ecosystem going forward. >> so are you saying that daniel did not do anything wrong, that kevin was simply more well-positioned to succeed? think they are in opposition to each other. daniel brought him great consumer products. kevin has a great track or a derivative -- record within twitter. built the entire revenue product organization from scratch. they look at him as a great leader with a great background. i think daniel did what he was
brought in to do, and kevin was to grow into the organization. >> would you agecho that? >> i am hearing that the turnover, that the surprise of the turnover is the problem. if twitter had come out at the beginning of the year and said that we're going to shuffle through our top ranks and come new focus,ew plan, a and make it cohesive, people would have said we get it and we understand what the plan is been but some of these things have just been surprising. the cfo changeover was a surprise. the engineers that left earlier this week, it keeps going. the market does not like to be surprised. is is thisn now, going to continue, because we all thought it was over when they got a new cfo.
fromw problematic is it your perspective that so many changes keep happening? >> what is important is to make sure you get the team right, and not react to what the market think she should be doing. i think in the end, that is what they are focused on, and that is what they think is the right move and they are not trying to react to what the market expects of them. he and alex have worked together for a very long time. ofx is going to run all engineering, kevin will work all of products. they are making very bold decisions on the product side, and you need someone who is an insider and who has been there for a long time and has been the -- respected throughout the entire company. dickspoke with costolo earlier this week, and talked about the management evolution. take a look at what he had to
say. >>'s the management teams grow and evolve over time, and i think that is always the case. i love the team we have in place. we have tremendous leaders across the company. impression in your of the morale at twitter as this has been happening? around a want to rally solid direction. when you have a lot of changes an management, it is hard to know what that direction is. but twitter says we have a plan, we have had this planned before. we are going to see changes, but we have yet to really see from the consumer side with that really looks like. there is not that much that we have noticed as users of twitter to have changed. and until that happens investors are going to be a little bit skeptical of what is going on in twitter products. >> dick costolo, he is
incredibly well regarded. why should we not be concerned about these changes? there is concern that the product is not evolved. why not? i think that the reason you want to be excited about this is they are working to get right team in place going forward. what the team's execution to get faster, and those are guys you have seen on the revenue side. the platform under kevin's leadership has grown expo julie -- exponentially. these are the guys to do that for you and i'm not worried about the future, i am excited about where they're headed. as gettings dramatic
rid of usernames, what would you want to see twitter do in the next 12 months? >> everyone has talked about it i'm a but it is about growth. rmation on afo mobile device. the thing they need to do is cross that chasm between hearing about twitter and understanding what the product is. see the team marketing and explaining that value, and building a market to support that as quickly as possible. if it were easy, it would have been solved by now. all parts of the organization need to be pulling for that one effort. >> we are going to be watching -- the cost low says he wants be movingto faster, to get the products of the doors, to make the twitter bigger. advertising
we will see if these things happen, if they happen with a cohesive team, whether the shuffling and turnover is over, and they can actually move forward. int some others have said observing this from a venture capitalist, it says if it does not work ever it reflects badly on the ceo. we will have to watch that. >> we will have to see if this regime is a lasting regime. always great to have you here. thank you. new tech products and services are launching all the time in san francisco. so how should the government be involved in regulating the services and protecting consumers? ♪
with uber. you have conducted investigations with the l.a. county da. youris the status on warning to these companies and the investigation? >> we are in the process of negotiations. there are a lot of things i cannot talk about it the reason why this became public is because one of the companies actually provided the letter that we sent to the media, and therefore it became public but the concerns that we have are the following. we want to make sure that the new business models are successful, and we want to make sure that that encores in a way that protects the consumer. one of the areas for concern is the area of safety for the rider. background checks, we do not believe that the truth in
advertising is accurate. as a consumer, you should have that information and it should be accurate. another thing we are concerned about is the access to airports and that it is done safely. on the extreme to terrorism, to just traffic flow and access to the terminal. these companies have not necessarily been following those regulations. >> what should the background check eight? be? what they need to do is they need to have truth in their advertising. so if they say we do the best in the industry, then they need to be the best in that would imply taking fingerprints, and looking deeply. what they are doing right now is
a very limited computer-based access. it gives them a limitation of about 5-7 years and they are not required by law to do the other one. -- do the bestay if they say they are doing the best. >> so they need to drop the claim of bass. >> either that, or up the standard. girl wasyear-old tragically struck and killed by driver, what is the status of that investigation? >> this is a criminal investigation as to the totality of the circumstance. this is ongoing. but this is to one of the areas of concern for us. concept of is this a technology company or a transportation company? >> can it be both?
>> i think so, but if you're a transportation company, your liability to the public increases during the entire operational cycle. if you're only a facilitator, which is what uber is saying now, then it is on the driver. >> let me change the topic, airbnb. big employer in san francisco all of the sudden, a company that is changing the way the city and communities are. certain communities are now renting out overnight renters but what is your role as a da to keep neighborhoods the same as they are? >> we have been looking at this, certainly, and in their department they have the ability to see how this works. we have allowed him to take the lead on this process.
what attracted you? why this company? two, we needde or -- reinvent old technology and the consumerization of technology has gotten everybody used to the google search box. even though information-technology costs a lot more, it is a lot less responsive to users. that is whatthought -- that is pot does.ghts heard it described as google for business intelligence. is that the right thing to think? kind of searchw engine. it is a search engine that is designed for numbers. traditionally business users have had to depend on i.t., and an id has to use limited
intelligence to fetch the data reports. act in real time, just like you're are asking me questions. you can get immediate answers. like finding flights on kayak, whether on google, you can find your financial data, marketing data, sales data on the fly. people really want bite-size information. they do not want to wait for weeks and weeks for somebody from i.t. to pull a report for them. our customer base is made to large. -- miod to large. scale, making on it easy, but at the same time, when you talk about accessibility, they have large volumes of data and a large number of users being able to
provide ease, but meet the enterprise class needs, security needs, stability means, work.ment needs, that is >> so much as been made about the potential of the data, but we have yet to see us become truly usable. it is difficult to go through all of that information. big data overhyped, or have we not figured it out? >> we are learning how to use it. is a classic example. one of the interesting things is you do not actually need to know the full query. googlejust things like search does but on very large cases of data. makes the data usable.
that is the key for turning what is hype into reality. >> how do you turn it into a reality? this over the next 3-5 years playing out? businessk intelligence was a big step forward. but moving forward we are looking at technologies that will be a lot more interactive. conventionally, in 10 years, we are probably looking at the kind of interface that you have seen in movies like minority report. big data is a great opportunity. and it's a structure that is used to store lots of data. deliver it to the end-users who really need the data, the met storage is not useful. what we are building is the last mile. is obviously have such a long history in silicon valley. we have heard other venture capitalists sound the alarm
about startups raising so much money so fast and mark devout thanven more vaporizing down the line. what are you thinking about where we are in the cycle? good startups raise money, and that is a good thing. i think spending too much money is the problem others have referred to. i get concerned when people use the money and start spending it and raising it is different than spending it. is a smallughtspot company that is very prudent in how it approaches this particular problem. in general, you're right, there is a concern there. >> recently sat down with the cofounders of google. do you see other entrepreneurs out there that can be the next larry or sergey "street smar?
do you see those with that potential? do see silicon valley becoming a state of mind more than just a place wher. many more people are trying to be larry, jeff, or mark zuckerberg. -- the number of good entrepreneurs are going up. we will see more businesses created, more disruption in the traditional sense, and more emerge. >> what do you mean that silicon valley will become a state of mind? >> it is less rigid, less looking to the past, more looking at the future. this is a classic example. they are saying let's forget is this intelligence, let's reinvented to what users really want to do.
this user center is starting with more and more enterprise, and that is disrupting traditional businesses in many areas where. >> when you look at entrepreneurs, when you look at vinod khosla and those he invests in, what takeaways are you seeing? what example are you trying to follow? a lot of really good role models in the valley. they are very helpful in sharing their experiences. what motivates me is working on really hard problems. in deliverings and building any type of technology. thinking about users first, customers first in my thinking the focus has been on
penetration. making it very easy for everyone to come to the social network. i think the whole approach to thinking about customers first, isrs first, the valley evolving from a technology company to a user industry company. one of my personal idols is elon musk. it is a well-known problem, electric cars. everyone was trying to build that. but there has been such an awesome car, that people are saying it is not just the best electric car, but the best car on the market. over the last several years you've expanded on your theory of companies that have a great
chance of failure. what is the next black swan? >> surprisingly, in every area we look, we find radical changes .nd the assumption , spacex, we see movements.ng turning big data into real insights and usable insights and almost every area i look at is open to innovation. ofvinod khosla, founder khosla innovation. thank you for joining us.
>> this is "bloomberg west." the infusion of new technology in classrooms has boomed over the last few years, with school issued tablets. we in the new firm with more. more.ws room with >> we have an interesting conversation about how this works. the ceo and founder of a company called clever. let me start with you. talk to me about the opportunity
presented by technology going into the classroom. >> thank you. i want to sneak one correction. i am not an investor, i run a nonprofit which helps education by providing content as well as individualizing that content and >> so what is the opportunity for that content in the classroom? to take forrting now. many districts are starting to and add it toent their content. each classrooms has such a wide variety of profiles of defense and teachers that it is hard for any teacher to teach a class across the board. what happens as a result of one form is to use that it only has one flavor, one story.
so, it sounds cute, but as we know and oakland right across the bay, with so many nationalities, with so many schools, with so many income levels and teachers of different skill levels, it sounds nearly impossible to get that working in this classroom setting. >> in oakland, equity is a very important issue for us. getting that content out to everybody is a challenge. to do itd days we had one application at a time. and now that we have a company like clever, we are able to get all of the applications like c k12 integrated right away. so it is easier for teachers and students. >> when you were looking at the phone earlier, i was picking up of a teacher
into class, and then they all have to pick up their tablet and logon and remember their passwords. that could be a whole hour of class rate there. -- right there. >> there is incredible software being used, but then you have all of these challenges. accounts one by one, teachers trying to logon. the average user in the classroom spends about 25% of their time just getting kids logiged. in. we are trying to get that time back. slovenly students are online. some of the students are digital presences. >> some of the classrooms today,
not every student is doing the same thing at the same time. it is a different way of thinking about learning what students could be challenged at their level and work at the pace.pir own >> meeting kids where they are, and with the right software at the right time. >> there has been some criticism over the years of getting technology into the school. more computers does not make kids smarter, or teachers better. learning is learning. of technology,se and schools wasting money on technology. where does it help, and where does it hurt? goingn you think about from slaves to paper and pencil, the transfer of that was an issue. but when you go from paper and mp and to a huge ju
complexity, and the technology is not always ready in the way you want to use it, and the whole idea of learning is about the classroom. i get the tautology is not quite ready to use -- but yet the technology is not quite ready to use, the promise of technology starts to make people nervous. we are not able to do with clever offers us to do. access, students need to have access. what happens is we started eight from what the situation was were people did , soeven have money to print we started to allow them to print. actually start making a real difference because there is a lot more to do. >> we want the technology to be
transparent. the students and teachers need access to that content. we want the technology to just work. focus is not there, the focus is on the content. thank you very much. >> thank you. with mark crumpton begins in a few minutes. he joins us now from new york. what are you following today? >> we will be looking at sports bet i will be interviewing the pitching ace for the new york mets. he is coming off of that elbow surgery you had, matt harvey. about the talking world series, free agency, and talking about what is coming up for the mets and the 2015 season. >> thank you. we will see you in a few minutes.
>> welcome back. the new york marathon takes over the big apple this sunday. the event to attract 50,000 participants from around the world. how do you determine the winners? the tech being used in the marathon. grid game is working with a company called proto-track -- c transfers datach back to the race organizers in real time. lastat has happened in the 20 years of information
processing and data processing is there has been a massive change in the amount of people and scale that you have to be .ble to process the only way to process large amounts of data is in memory computing. in computerur data drives. or disk that is necessary in order to support the real-time cal ollection that is happening to be up to process and report on the performance of athletes and do any analytics on that. you have these chips that are tags the in the
racers run with. and as they pass sensors on the course, they will be moved into the cloud, and processed, and then information is provided in real time to not just runners but spectators. the only way to do that, especially when you're trying to do it with 50,000 runners, for to do thaters, across races that are happening across six continents and 50 countries, you have to be able to do this in memory computing technology. >> in a marathon it comes down to seconds, if not fractions of seconds. county unit ensure the accuracy -- how do you ensure the accuracy? still using sensors that keep track of exactly where people are your still going to have a finish line, a laser let people cross. as people cross the sensors, the
exact time is recorded, and it is extremely accurate. >> what are you expect in, how are you are expecting this to play out this weekend? what are you worried about and watching most closely? notrack has been using this for a while now. they have done thousands of races, including multiple new york marathons. they are very competent at doing this. they have partners around the world. i think it will go quite well. >> thank you for joining us today. we will be watching. we spoke with the san francisco servicesridesharing earlier. giuliani us that rudy launched an independent review, and they are on track to complete more than 2 million
>> from bloomberg world headquarters in new york, i'm mark crumpton. this is "bottom line." ♪ >> to our viewers here in the united states and those of you joining us from around the world, welcome. we have full coverage of the stocks and stories making headlines today. olivia sterns looks at the hollywood horror movies that just won't die. another challenge to obamacare at the u.s. supreme court. peter cook looks at