The girl lay on the emergency room table, her breathing ragged, her vital signs dropping. The seven-year-old’s mother hovered nervously nearby as the medical team awaited instructions. The doctor in charge had just minutes to choose the right treatment before the girl died from anaphylactic shock.
It’s a scene common to pediatric emergency rooms around the world. But in this peanut-allergy scenario, the patient was a 3D avatar, and the doctor was wearing an Oculus Rift virtual reality (VR) headset.
For the last year, Children’s Hospital Los Angeles (CHLA) has been using VR to train medical students and residents in pediatric emergency medicine, says Dr. Todd Chang, director of research and scholarship at CHLA.
“Pediatric emergencies are high-stakes, low-frequency events,” says Chang, who worked with BioflightVR and AiSolve to develop the simulation. “They’re hard to train for because they don’t happen very often, and you don’t get comfortable until you’ve done a lot of them. So we use simulations.”
Traditionally, medical students are trained using costly computerized mannequins, which require a team of other medical professionals to play different parts in the scenario. Or students learn via on-screen simulations, which lack the urgency and impact of a real-world exercise.
But VR feels more real, and that makes the training more effective, says Dr. Joshua Sherman, CHLA’s associate director of quality improvement, who collaborated with Chang on the sim.
“As much as we try to recreate a scenario, people know it’s a mannequin; they know they’re in a classroom staring at a computer screen,” he says. “They’re missing that psychologic fidelity that makes it feel like the real thing. That’s where we thought VR could help.”
This you-are-there sensation created by VR and its less-immersive cousin, augmented (or mixed) reality, is helping universities and professional schools find new ways to teach and encouraging students to discover new ways to learn and thrive.
Medical educators are among the earliest adopters of virtual technology.
At Cleveland’s Case Western Reserve University (CWRU), for example, instructors are using Microsoft HoloLens mixed reality glasses to teach anatomy.
As opposed to VR gear like the Oculus, the HoloLens is not immersive; it overlays virtual images on top of real ones. So when students and professors don the $3000 headgear, they see a transparent, life-sized hologram of a human body floating in the air. They can walk around the body and zoom in on individual organs or systems while interacting with the professor and other students, notes Mark Griswold, professor of radiology and faculty leader of CWRU’s Interactive Commons.
“With HoloLens, the students and the professor can look at the same holographic image of the body together—and, at the same time, still see each other,” he says. “Mixed reality allows students to see where the professor is directing their attention and allows the professor to see how the students are approaching the body and get a sense of who might need a bit more guidance.”
Professors can present different conditions such as tumors or blocked arteries, go inside organs without cutting into them, or change the model from adult to child—all things you can’t do very easily with a human cadaver.
Medicine is only one area where VR is changing how syllabus are being taught. Immersive environments are also making a big difference in the teaching of history, archeology, and architecture.
At Georgia State University (GSU), Glenn Gunhouse has been creating 3D computer models to teach art history. These immersive spaces can be projected onto a screen or viewed on smartphone-based VR like Samsung Gear VR and Google Cardboard.
“Sometimes the kind of knowledge I want students to have can only be gained by experiencing a 3D space or building,” says Gunhouse, a senior lecturer at GSU’s School of Art and Design. “The things we’re talking about are real-world places, so I try to make 3D models that allow students to experience them in a bodily way. When they write papers for me on the basis of virtual models, someone else practicing them wouldn’t be able to tell if they visited the genuine church or the virtual one.”
VR offers a sense of scale you can’t get from looking at images on a computer screen, says Eric Wernert, director of visualization and analytics and research technologies for the Pervasive Technology Institute at Indiana University.
“You can imagine what scale drawings and 3D renderings might look like, but you need to walk through the space in VR to get a sense of ‘oh, this entryway is too small’ or ‘this thing is really a lot taller than I thought it would be,’” he says.
Immersive environments also allow educators to capture vast amounts of data on students’ performance: what they gazed at and for how long; what they did inside the environment and how quickly they did it. Teachers can then use predictive analytics to project how well a student might do in the future.
“The data was the most important and unique part of this project,” says Chang of his work with VR simulations. “How many seconds does it take for students to supply the correct medications? How quickly do they react to something else? All of that data is put into a spreadsheet we can show students at the end of the simulation.”
So why aren’t more universities embracing virtual and mixed reality? One reason is cost. Outfitting a classroom full of students with headgear and the computers to power them is still too expensive for a lot of cash-strapped schools, notes Emory Craig, cofounder of immersive learning consulting group Digital Bodies.
“I’ve seen labs that have 4 or 5 Oculus or HTC VIVE headsets, but it’s very rare when someone’s gone out and bought 20 or 30,” says Craig, who’s also director of eLearning at the College of New Rochelle.
That may change in 2018, when Facebook plans to release its $199 stand-alone Oculus Go, which doesn’t need to be tethered to a powerful PC. (HTC also has introduced its own stand-alone unit, the VIVE Focus.)
“These will be something of a game changer,” Craig says. “That’s when you could conceivably say, ‘We are going to get enough of these so that everybody can walk into a lab and use one simultaneously.’”
Another barrier is the relative lack of immersive content. Right now, most professors either create their own software or add their own 3D content to an existing VR software package, says Indiana University’s Wernert. Some professors have also had luck combing through games libraries, such as the Steam VR store, to find apps suitable for use in teaching, he adds.
This is about to change in a big way. Pearson, the world’s largest vendor of textbooks and digital educational content, plans to introduce five mixed reality apps for HoloLens next year. The new software includes a chemistry app that lets students build molecules out of holograms and a history app that lets them curate their own exhibitions using materials from the British Museum.
Pearson has been piloting mixed reality projects at universities such as Bryn Mawr, San Diego State, and Texas Tech over the last year, says Mark Christian, the company’s global director of immersive learning.
“Some of the apps we built look to be fairly transformational in teaching,” he says. “We’ve taken the ones that had real promise and are bringing those to market in 2018.”
At present, immersive environments are largely a solo experience: The VR or AR app lives on the device of a single user, who navigates through the digital world alone. But as the technology develops, it will rely more and more on virtualized machines in private and public clouds to serve up a library of content to multiple users.
Pearson already has created a network-based content management system that allows multiple students to share the same experience, says Christian.
“The collaboration piece is pretty interesting,” he says. “A teacher can launch a HoloLens session and students can hop on and see it. You can record everything a student sees, hears, and says; their location in the room; and what they’re looking at it. It allows you to see how a group of students are collaborating with each other in a meaningful way.”
Soon, those students will no longer need to be in the same room or even the same country. With a cloud connection and sufficient bandwidth, they will eventually be able to collaborate and communicate across great distances.
“With VR simulations in the future, a student in New York could practice with another student in Los Angeles and one in France, practicing teamwork and communications with each other inside these scenarios,” says Sherman.
Still, these are early days; the potential of virtual and mixed reality in higher education has barely been tapped.
“The opportunities for additional education applications are, quite literally, limitless,” says CWRU’s Griswold.
“Imagine seeing the battle of Gettysburg from the vantage point of a soldier, or standing with thousands in the crowd as the Reverend Martin Luther King Jr. gave his ‘I Have a Dream’ speech, or in the Apollo 11 cockpit as Neil Armstrong took his first steps on the moon—all while maintaining normal interactions with your teacher and other students. It’s something that’s never really been possible before.”
The Possibility Report is an ongoing series about how technology is changing our understanding of the world around us. This article is part of GROW, our discussion on how technology is impacting the ways we cultivate, prepare, and deliver food at home and beyond.
The manual supply chain attack against SolarWinds’ Orion network monitoring platform has sent shockwaves throughout the world, with suspected Russian government hackers gaining access to U.S. government agencies, critical infrastructure entities and private sector organizations.
The injecting of malicious code into Orion between March and June 2020 allowed hackers believed to be with the Russian intelligence service, or APT29, to compromise Microsoft and FireEye, as well as U.S. Departments of Defense, State, Treasury, Homeland Security and Commerce, according to reports from Reuters and others.
The U.S. Cybersecurity and Infrastructure Security Agency (CISA) ordered all federal civilian agencies Sunday to power down SolarWinds Orion products until all hacker-controlled accounts and identified persistence mechanisms have been removed. CISA said it has evidence of additional initial access vectors beyond SolarWinds Orion, but noted those other intrusion methods are still being investigated.
Michael Dell: Public Cloud Isn’t More Secure Than On-Premise
‘The things that led to a lot of these attacks are human-induced that can occur in a public cloud, can occur in a private cloud – it can occur anywhere,’ says Dell Technologies CEO Michael Dell.
Mimecast Axes SolarWinds Orion For Cisco NetFlow After Hack
Mimecast has decommissioned its SolarWinds Orion software and replaced it with a Cisco NetFlow monitoring system after hackers compromised a Mimecast certificate used for Microsoft authentication.
Microsoft’s Brad Smith Drags AWS, Google Over SolarWinds Response
‘There are other companies that... have not even alerted their customers or others that they were a victim of a SolarWinds-based attack. These are companies where their own infrastructure was used to launch the attack,’ says Microsoft’s Brad Smith.
AWS: SolarWinds Hackers Used Our Elastic Compute Cloud
‘The actors used EC2 just like they would use any server they could buy or use anywhere (on-premises or in the cloud). And, in fact, the actors did use several different service providers in this manner,’ AWS tells CRN.
SolarWinds To Spend Up To $25M On Security Following Attack
SolarWinds says the money will be put toward security initiatives as well as used to cover higher costs around both insurance and professional fees stemming from the massive cyberattack.
Partners: AWS Must Come Clean On Role In SolarWinds Hack
‘I do wonder whether AWS has made a judgment error in not coming out to publicly defend their position in this high-profile case with such far reaching consequences,’ says Karl Robinson of AWS partner Logicata.
10 Boldest Statements From The SolarWinds Senate Hearing
Senators and tech executives discussed how the SolarWinds hackers used AWS’ infrastructure, took advantage of Microsoft’s authentication process, dwelled in FireEye’s systems and remained undetected for months.
U.S. Senators: AWS Infrastructure Used In SolarWinds Attack
‘The operation we’ll be discussing today uses [Amazon’s] infrastructure, [and], at least in part, required it to be successful. Apparently they were too busy to discuss that here with us today,’ says Sen. Marco Rubio, R-Fla.
U.S. Plans Russian Sanctions For SolarWinds Breach: Report
The Biden administration plans to classify the SolarWinds campaign as ‘indiscriminate’ and ‘disruptive’ to distinguish it from espionage activities the U.S. conducts against adversaries, The Washington Post reported.
Microsoft On-Premises Warning: Customers Must Protect Their Own Identity Infrastructure
‘We were also reminded of the importance of cloud technology over on-premises software. Cloud technologies like Microsoft 365, Azure and the additional premium layers of services available as part of these solutions Boost a defender’s ability to protect their own environment,’ writes Vasu Jakkal, Microsoft’s corporate vice president of security, compliance and identity, in a blog post.
SolarWinds Hackers Kept Going After Microsoft Until January
The SolarWinds hackers first viewed a file in a Microsoft source repository in November, and were able to download source code for its Azure, Exchange and Intune cloud-based products.
SolarWinds MSP Building New IT Systems Prior To N-able Launch
‘As we look to design the new N-able systems, we‘re going to have the benefit of all that [threat actor] knowledge and these world class experts to help us design this,’ says SolarWinds MSP President John Pagliuca.
SolarWinds MSP Hunts For New Security Chief Following Split
‘Tim [Brown, VP of Security] has been a fantastic advisor to the 25,000 MSPs that we have. So, we’re bummed. But we understand. So, we’re looking to see if we can clone him,’ says SolarWinds MSP President John Pagliuca.
10 Bold Statements From SolarWinds MSP After The Orion Hack
From comments on switching up CEOs and weeks of silence to building new IT systems and giving MSPs free security products, here’s a look at 10 notable remarks made by SolarWinds MSP President John Pagliuca and VP of Security Tim Brown.
SolarWinds Hacked From Inside U.S., 100+ Orgs Compromised
‘As a country, we choose to have both privacy and security. [As a result], the intelligence community largely has no visibility into private sector networks,’ says Anne Neuberger, a top Biden administration cybersecurity official.
Microsoft: No Evidence SolarWinds Was Hacked Via Office 365
‘The wording of the SolarWinds 8K [regulatory] filing was unfortunately ambiguous, leading to erroneous interpretation and speculation, which is not supported by the results of our investigation,’ Microsoft said Thursday.
Alex Stamos Attributes SolarWinds Hack To Russian Intel Service
New SolarWinds consultant Alex Stamos says the Russian foreign intelligence service is responsible for the massive hacking effort, although SolarWinds itself isn’t attributing the attacks to a specific group or nation.
SolarWinds CEO Confirms Office 365 Email ‘Compromise’ Played Role In Broad Based Attack
SolarWinds CEO Sudhakar Ramakrishna has Checked suspicious activity in its Office 365 environment, with a company email account compromised and used to access accounts of targeted SolarWinds staff in business and technical roles.
Mimecast To Lay Off 80 Workers Weeks After Disclosing Hack
Mimecast CEO Peter Bauer says cutting 4 percent of its workforce will help the company provide more resources to enterprises while leveraging automation and efficiency for mid-market and SMB customers.
Kevin Mandia: Discovering SolarWinds Hack ‘Validates Our Intelligence and Expertise’
‘This breach got everybody to recognize there‘s a way to compromise some of the most secure organizations on the planet in a surreptitious way, and that alarmed people,’ says FireEye CEO Kevin Mandia.
Chinese Hackers Exploit SolarWinds To Steal Federal Payroll Info: Report
Suspected Chinese hackers took advantage of another SolarWinds Orion vulnerability to spread across networks and break into computers at the National Finance Center and other U.S. agencies, Reuters said.
Sophos CEO Kris Hagerman’s 10 Boldest Remarks From Best Of Breed Virtual Winter 2021
From surging sales and profitability and securing the supply chain to combating complexity and doubling down on detection and response, here’s a look at 10 notable statements made by Sophos CEO Kris Hagerman.
SolarWinds Hack ‘One Of The Most Dramatic’ In Last Decade: Sophos CEO
‘You cannot think about your security only in the context of, ‘How well am I secured?’ You’ve got to go beyond that to say, ‘How well am I secured and how well am I securing everything that I connect to?’’ says Sophos CEO Kris Hagerman.
Fidelis Targeted By SolarWinds Hackers After Installing Orion
Fidelis Cybersecurity was a target of interest to the SolarWinds hackers after downloading an evaluation copy of trojanized SolarWinds Orion network monitoring software in May, the company disclosed Tuesday.
Mimecast Breach Linked To SolarWinds Hack, Allowed Cloud Services Access
Mimecast said Tuesday that its certificate compromise was carried out by the same threat actor behind the SolarWinds attack and provided hackers with access to customers’ on-premises and cloud services.
5 Security Vendors That Have Reported Cyberattacks Since December
Five cybersecurity vendors disclosed in accurate weeks that hackers have attacked their internal systems, compromised their certificates or attempted to access their email accounts. Here’s a rundown of what happened when.
SolarWinds Hackers Access Malwarebytes’ Office 365 Emails
‘Attackers leveraged a dormant email production product within our Office 365 tenant that allowed access to a limited subset of internal company emails,’ Malwarebytes CEO Marcin Kleczynski wrote in a blog post.
SolarWinds Hack Could Cost Cyber Insurance Firms $90 Million
‘Although the SolarWinds attack is a cyber catastrophe from a national security perspective, insurers may have narrowly avoided a catastrophic financial incident to their businesses,’ says BitSight’s Samit Shah.
5 Things To Know About The Mimecast Hack And Stock Drop
From the type of certificate likely compromised to the impact of this hack on Mimecast’s email security rivals to whether the attack is tied to the SolarWinds breach, here are five big things to know about the Mimecast hack.
Hackers Compromise Mimecast Certificate For Microsoft Authentication
The certificate used to authenticate Mimecast’s Sync and Recover, Continuity Monitor and Internal Email Protect (IEP) products to Microsoft 365 has been compromised by a sophisticated threat actor.
Hackers Taunt FireEye’s Kevin Mandia At Home With Postcard: Report
The FBI is investigating a mysterious postcard sent to CEO Kevin Mandia’s home days after FireEye found initial evidence of a hacking operation on federal agencies and private businesses, Reuters reports.
SolarWinds CEO: Attack Was ‘One Of The Most Complex And Sophisticated’ In History
Hackers first accessed SolarWinds in September 2019 and went out of their way to avoid being detected by the company’s software development and build teams, SolarWinds CEO Sudhakar Ramakrishna says.
SolarWinds’ New CEO Will Make These 5 Changes Post-Hack
From resetting privileged credentials and re-signing all digital certificates to manually checking source code and rolling out threat hunting software, here are five critical security improvements new SolarWinds CEO Sudhakar Ramakrishna plans to make.
SolarWinds Fights Back With Chris Krebs, Alex Stamos Hires
‘Armed with what we have learned of this attack, we are also reflecting on our own security practices and seeking opportunities to enhance our posture and policies. We have brought in the expertise of Chris Krebs and Alex Stamos to assist in this review,’ SolarWinds tells CRN.
SolarWinds Hackers Compromise Confidential Court Filings
The Russian hackers behind the SolarWinds attack have apparently compromised the federal courts’ electronic case filing system, putting ‘highly sensitive non-public documents’ at great risk.
SolarWinds To Pay Ex-CEO $312K To Assist With Investigations
SolarWinds has agreed to pay former CEO Kevin Thompson $62,500 for each of the next five months as the embattled company faces a likely wave of lawsuits and government probes into its conduct around the hack.
SolarWinds Hackers Got Into U.S. Justice Department’s Emails
‘At this point, the number of potentially accessed Office 365 mailboxes appears limited to around 3 percent, and we have no indication that any classified systems were impacted,’ the Justice Department announces.
Feds: SolarWinds Breach Is Likely Russian Intel Gathering Effort
Nearly ten U.S. government agencies experienced follow-on activity on their systems after being compromised through a malicious SolarWinds Orion update, the Cyber Unified Coordination Group says.
SolarWinds Hit With Class-Action Lawsuit Alleging Securities Violations
The first class-action lawsuit brought against SolarWinds following its colossal breach accuses the company of making materially false and misleading statements about its security posture throughout 2020.
SolarWinds Hackers Gain Access To Microsoft’s Source Code
One Microsoft account compromised by suspected Russian hackers had been used to view source code in a number of source code repositories, but none of the code itself was altered, Microsoft disclosed Thursday.
Here Are 24 Reported Victims Of The SolarWinds Hack (So Far)
From tech giants, internet service providers and IT solution providers to federal agencies and county governments, here’s a deeper look at 24 of the publicly identified victims of the colossal SolarWinds hack.
CrowdStrike Fends Off Attack Attempted By SolarWinds Hackers
The suspected Russian hackers behind the massive SolarWinds attack attempted to hack CrowdStrike through a Microsoft reseller’s Azure account but were ultimately unsuccessful, CrowdStrike says.
Five Solution Providers Breached By SolarWinds Hackers: Researchers
The SolarWinds hackers called for proceeding with the second stage of their attack on Stratus Networks, Digital Sense, ITPS and Netdecisions, and had an unknown response to compromising Deloitte, Truesec says. Digital Sense said it wasn’t impacted by the campaign since the company doesn’t use SolarWinds.
Top Treasury Email Accounts Exposed In SolarWinds Hack: Report
The hackers performed a complex step inside Microsoft Office 365 to create an encrypted “token” that tricked the Treasury’s system into thinking the hackers were legitimate users, The New York Times said.
Microsoft: A 2nd Group May Have Also Breached SolarWinds
A ‘different threat actor’ may be responsible for the malware known as Supernova that has been found installed in SolarWinds Orion.
Kevin Mandia: 50 Firms ‘Genuinely Impacted’ By SolarWinds Attack
FireEye CEO Kevin Mandia acknowledges the SolarWinds hack ‘is an attack very consistent with’ what the Russian foreign intelligence service is known for, but didn’t want to officially blame the campaign on them.
Intel, Nvidia Swept Up In SolarWinds Attack: WSJ
The chipmakers say they are investigating the impact of downloading a software update containing malicious code for SolarWinds Orion — the trigger that has left many SolarWinds customers vulnerable — though there is no evidence of any negative impact.
Unclassified Treasury Systems Hit By SolarWinds Hack: Mnuchin
‘At this point, we do not see any break-in into our classified systems. Our unclassified systems did have some access,’ Secretary of the Treasury Steve Mnuchin tells CNBC Monday morning.
Trump Downplays SolarWinds Hack, Pompeo Blames Russia
‘Russia, Russia, Russia is the priority chant when anything happens because Lamestream [Media] is, for mostly financial reasons, petrified of discussing the possibility that it may be China (it may!),’ Trump tweeted.
Cisco Hacked Through SolarWinds As Tech Casualties Mount
Roughly two dozen computers in a Cisco lab were compromised through malicious SolarWinds Orion updates, Bloomberg reported. Cisco says there isn’t currently any known impact to its offers or products.
Datto Offers All MSPs Free Scanner To Find Signs Of FireEye, SolarWinds Hack
‘Now is a time to remain vigilant and take an active role in hardening systems against these, now known, tactics,’ Datto CISO Ryan Weeks writes in a blog post announcing the scanner.
VMware Flaw Used To Hit Choice Targets In SolarWinds Hack: Report
A VMware vulnerability that allowed federated authentication abuse was used by the SolarWinds hackers to attack valuable targets, KrebsOnSecurity said. VMware said it didn’t have any indication of this happening.
SolarWinds Should Have Been More ‘Vigilant’: Palo Alto Networks CEO
‘I am not going to supply them a free pass,’ says Palo Alto Networks CEO Nikesh Arora. ‘They should have been more vigilant and diligent, but I think this is a very sophisticated, very complex attack. The fact they (the Russians) got in there not only did they do sophisticated things, they also got lucky that this is a piece of software which then went unnoticed for six to nine months, and now it’s embedded in the infrastructure of thousands of customers.’
SolarWinds Hack Compromised 40-plus Microsoft Customers
A decisive plurality – 44 percent – of the Microsoft customers compromised through SolarWinds are actually in the IT sector, and include software and security firms as well as IT services and equipment providers.
Microsoft Breached Via SolarWinds As Scope Of Destruction Widens: Report
Suspected Russian hackers capitalized on Microsoft’s wide use of SolarWinds to infiltrate the software giant, and then used Microsoft’s own products to further their attacks on other victims, Reuters said. Microsoft pushed back on the report.
SolarWinds Deploys CrowdStrike To Secure Systems After Hack
SolarWinds says its breached Orion network monitoring platform now meets the security requirements of U.S. federal and state agencies following the release of a final hotfix Tuesday night.
Feds: SolarWinds Attack ‘Poses a Grave Risk’ To Government, Business
The U.S. government says it has evidence of additional initial access vectors beyond the SolarWinds Orion supply chain compromise, but noted that those other attack methods are still being investigated.
SolarWinds MSP To Revoke Digital Certificates For Tools, Issue New Ones As Breach Fallout Continues
‘I think they’re afraid. They’ve got liability, and they don’t know what to say, so everybody’s told to keep their mouth shut. Instead of being focused on the issue at hand, they’re worried about lawsuits,” SolarWinds MSP partner Rich Delany tells CRN.
SolarWinds Hack ‘One Of The Worst In The Last Decade’: Analyst
‘There are a lot of white knuckles around this attack ... Even though much of it is unknown, right now people are fearing the worst,’ Daniel Ives of Wedbush Securities tells CRN.
Malware Used In SolarWinds Attack Can Now Be Blocked: FireEye
‘Under certain conditions, the malware would terminate itself and prevent further execution... This killswitch will affect new and previous... infections by disabling... deployments that are still beaconing to avsvmcloud[.]com,’ FireEye tells CRN.
Microsoft’s Role In SolarWinds Breach Comes Under Scrutiny
Microsoft has become ensnared in probes surrounding the colossal U.S. government hack, with media reports and company messages focusing on Office 365, Azure Active Directory and a key domain name.
$286M Of SolarWinds Stock Sold Before CEO, Hack Disclosures
Silver Lake and Thoma Bravo said they weren’t aware of the cyberattack at the time of the sale, but didn’t respond to questions about whether they knew Sudhakar Ramakrishna had been selected as SolarWinds’ next CEO.
10 Things To Know About The SolarWinds Breach And Its U.S. Government Impact
From how nation-state hackers evaded detection to why federal agencies were ordered to immediately power down Orion to its impact on the SolarWinds MSP business, here are the most important things to know about the SolarWinds breach.
Homeland Security Latest Breach Victim Of Russian Hackers: Report
A spokesman said the Department of Homeland Security is aware of reports of a breach and is currently investigating the manner. The U.S. Treasury and Commerce Departments were also reportedly hacked.
US Calls On Federal Agencies To Power Down SolarWinds Orion Due To Security Breach
An emergency directive issued by the U.S. government calls on all federal civilian agencies to disconnect or power down SolarWinds Orion IT management tools because they are being used to facilitate an active exploit.
Infected SolarWinds Updates Used To Compromise Multiple Organizations: FireEye
Nation-state hackers gained access to government, consulting, technology and telecom firms around the world through trojanized updates to SolarWinds’ Orion network monitoring tool, according to FireEye .
8 Big Things To Know About The State-Sponsored FireEye Hack
From who’s suspected to be behind the FireEye hack and how they remained hidden, to what FireEye and intelligence officials are doing to minimize the fallout from the attack, here’s a look at what partners need to know.
FireEye Hacked By Nation-State Group Seeking Government Info
‘This attack is different from the tens of thousands of incidents we have responded to throughout the years. The attackers tailored their world-class capabilities specifically to target and attack FireEye,’ says CEO Kevin Mandia.
Never has a corporation done so much with so little. Founded in Mountain View, Calif. on July 18, 1968, by Robert Noyce and Gordon Moore, Intel Corp. (INTC) has been the world’s leading manufacturer of microprocessors and chipsets almost since its inception. Based on its 2020 revenue of $77.9 billion, Intel is the largest semiconductor company in the world.
Intel's closest competitor, Samsung Electronics, recorded $57.7 billion in semiconductor sales in 2020, while Taiwan Semiconductor Manufacturing Co. Ltd. (TSM), came in third with $45.5 billion in revenue.
In this article, we'll take a look at Intel's strengths that have kept it at the top of the semiconductor industry for so long. Plus, we'll also review challenges the company will need to contend with in the years to come as competition to dethrone the mega chip maker intensifies.
What separates Intel from most other semiconductor companies is that it fabricates its products in-house. The bulk of semiconductor “manufacturers” farm the genuine work of creating the products out to foundries in China. Intel even fabricates chips for other companies—for the most part, ones too small to be considered true competitors. Is that a conflict of interest? Not really. Fabrication plants can cost several billion dollars to build, and it makes sense for Intel to keep its plants busy.
Intel does indeed assemble chipsets in China, but at Intel-owned facilities. It is received wisdom among some American doomsayers that low labor costs make China the world's factory and the default base of manufacturing operations for U.S. corporations that want to save a few pennies per unit and “ship jobs overseas.” That claim is sometimes more accusatory than it is true.
At the end of 2020, Intel had a multitudinous workforce of 110,600, approximately half of whom were employed in the United States. Almost half of Intel’s chipsets and microprocessors are manufactured at home, at facilities in the suburbs of Phoenix, Albuquerque, and Portland. Outside of China, most of the remaining Intel products are developed in Israel.
The semiconductor industry uses the term "fabless" to describe a company that designs and markets its chips while outsourcing the fabrication to a third-party manufacturer. Some of Intel's biggest competitors—Nvidia Corporation and Qualcomm—are fabless companies.
Given that Intel fabricates other companies’ chips at its facilities, the business of working with companies that in some settings might be your competitors is more common than you might think. For instance, in 2007 Apple Inc. (AAPL) began using Intel chips exclusively in its Macs, supplanting the PowerPC CPUs that Apple itself helped develop as part of a consortium.
But that long-term partnership with Intel came to an end in 2020 when Apple announced its new laptops and desktops would no longer use Intel processors. Instead, their machines would be powered by Apple's new M1 chip, which the company developed as part of its "Apple silicon" plan to own and control the primary technologies behind their products.
This loss of a valued (and lucrative) customer came as a significant blow to Intel. In its 2020 annual report, the company said that one of its biggest challenges going forward would be in dealing with the loss of revenue from customers like Apple that decide to break ties and develop their own semiconductor designs.
Intel’s co-founder, Gordon Moore, lends his name to the most famous observation in technology. Formulated in 1965, Moore’s Law states that transistor density doubles every two years. Not only has the observation held ever since, but Intel has officially incorporated the law into its company strategy. In 2020, the company announced it had doubled its combined 14nm and 10nm manufacturing capacity in just a few years. This enabled Intel to expand its line of 10nm products and launch its next generation of mobile PC processors.
So who’s buying all these Intel chips?
In 2020, Intel had three major customers that were responsible for 39% of the company's net revenue. Dell Inc. accounted for 17%, Lenovo Group Limited accounted for 12%, and HP Inc. accounted for 10%. These three customers generated 43% of Intel's accounts receivable as of Dec. 26, 2020.
Capitalizing on the leverage of its market-leading position, Intel has over the years shifted some of its focus to smaller devices and embedded systems. The latter refers to chips placed in something other than stand-alone computers, which can include everything from cars and planes, to traffic signals and factory assembly lines.
Like any corporation of its size ($234.1 billion market capitalization as of April 27, 2021), Intel has an elaborate business organization. The company has five major divisions or groups:
While Intel's business groups have enjoyed a reputation for cutting-edge innovation, that reputation came under close scrutiny by activist hedge fund Third Point LLC in December 2020. Third Point criticized Intel's management for losing market share to its rivals, noting, in particular, the loss of customers like Apple, Microsoft, and Amazon that were developing their own semiconductor solutions and sending their designs to Asia for manufacturing. Additionally, Intel was rebuked for not retaining some of its top chip designers and leaders, who were steadily leaving the company.
Third Point Chief Executive Daniel Loeb asked Intel to consider strategic alternatives, such as divesting itself of failed acquisitions and deciding whether it should remain an integrated device manufacturer. Bowing to the pressure, Intel's board of directors announced that CEO Bob Swan would be replaced by VMware CEO Pat Gelsinger in February 2021.
Some companies dominate an industry, fail to innovate, and fall into irrelevance (e.g., Howard Johnson and Kodak). Others have great ideas but never manage to capitalize on them. The company that can leverage intellectual firepower with commanding market share is the company that can stay both powerful and relevant for decades.
While Intel has enjoyed over 50 years of dominance in the semiconductor industry, it faces fierce competition from rivals—such as Taiwan Semiconductor Manufacturing Co, Advanced Micro Devices Inc., and Samsung Electronics—that could put Intel's future dominance in the semiconductor industry in question.
The MarketWatch News Department was not involved in the creation of this content.
Jul 07, 2022 (The Expresswire) -- "Final Report will add the analysis of the impact of COVID-19 on this Cloud Services industry."
Global "Cloud Services Market" (2022-2028) research report includes key market information along with quantitative data necessary to make key business strategies and plans before entering the Cloud Services market. Data provided related to market drivers, future trends, growth opportunities and challenges, competition by manufacturers, production and capacity by region, market dynamics and COVID-19 is covered in this report.
Global Cloud Services Market Report 2022 is spread across 100 pages and provides exclusive vital statistics, data, information, trends and competitive landscape details in this niche sector.
Get a demo PDF of the report at- https://www.researchreportsworld.com/enquiry/request-sample/20991922
List of TOP KEY PLAYERS in Cloud Services Market Report are -
● Amazon Web Services
The information for each competitor includes - Company Profile, Main Business Information, SWOT Analysis, Sales, Revenue, Price and Gross Margin, Market Share.
Cloud Services Market Analysis and Insight:
Cloud services are infrastructure, platforms, or software that are hosted by third-party providers and made available to users through the internet. Cloud services facilitate the flow of user data from front-end clients (e.g. usersâ servers, tablets, desktops, laptopsâanything on the usersâ ends), through the internet, to the providerâs systems, and back. Users can access cloud services with nothing more than a computer, operating system, and internet connectivity or virtual private network (VPN). All infrastructure, platforms, software, or technologies that users access through the internet without requiring additional software downloads can be considered cloud computing services. The Cloud Services industry can be broken down into several segments, SaaS, IaaS, PaaS, etc.
Market Analysis and Insights: Global and United States Cloud Services Market
This report focuses on global and United States Cloud Services market, also covers the segmentation data of other regions in regional level and county level.
Due to the COVID-19 pandemic, the global Cloud Services market size is estimated to be worth USD 430970 million in 2022 and is forecast to a readjusted size of USD 780300 million by 2028 with a CAGR of 10.4% during the review period. Fully considering the economic change by this health crisis, by Service Model, SaaS accounting for (%) of the Cloud Services global market in 2021, is projected to value USD million by 2028, growing at a revised (%) CAGR in the post-COVID-19 period. While by Application, BFSI was the leading segment, accounting for over percent market share in 2021, and altered to an (%) CAGR throughout this forecast period.
The main Cloud Services players include Microsoft, Amazon Web Services, Oracle, etc. The top three Cloud Services players account for approximately 37% of the total global market. North America is the largest consumer market for Cloud Services, accounting for about 54%, followed by Asia-Pacific and Europe. In terms of Service Model, SaaS is the largest segment, with a share about 34%. And in terms of Application, the largest application is Banking, Financial Services, and Insurance (BFSI), followed by Telecommunications.
Global Cloud Services Scope and Market Size
Cloud Services market is segmented by region (country), players, by Type and by Application. Players, stakeholders, and other participants in the global Cloud Services market will be able to gain the upper hand as they use the report as a powerful resource. The segmental analysis focuses on revenue and forecast by region (country), by Type and by Application for the period 2017-2028.
For United States market, this report focuses on the Cloud Services market size by players, by Service Model and by Application, for the period 2017-2028. The key players include the global and local players, which play important roles in United States.
Global Cloud Services Market Segmentation By Types, By Applications and By Region:
Global Cloud Services market analysis and market size information is provided by regions (countries). Segment by Application, the Cloud Services market is segmented into United States, Europe, China, Japan, Southeast Asia, India and Rest of World. The report includes region-wise Cloud Services market forecast period from history 2017-2028. It also includes market size and forecast by players, by Type, and by Application segment in terms of sales and revenue for the period 2017-2028.
The report introduced the Cloud Services basics: definitions, classifications, applications and market overview; product specifications; manufacturing processes; cost structures, raw materials and so on. Then it analyzed the world’s main region market conditions, including the product price, profit, capacity, production, supply, demand and market growth rate and forecast etc. In the end, the report introduced new project SWOT analysis, investment feasibility analysis, and investment return analysis.
Competitive Landscape and Cloud Services Market Share Analysis:
Cloud Services market size competitive landscape provides details and data information by players. The report offers comprehensive analysis and accurate statistics on revenue by the player for the period 2017-2021. It also offers detailed analysis supported by reliable statistics on revenue (global and regional level) by players for the period 2017-2021. Details included are company description, major business, company total revenue and the sales, revenue generated in Cloud Services business, the date to enter into the Cloud Services market, Cloud Services product introduction, accurate developments, etc.
The report offers detailed coverage of Cloud Services industry and main market trends with impact of coronavirus. The market research includes historical and forecast market data, demand, application details, price trends, and company shares of the leading Cloud Services by geography. The report splits the market size, by volume and value, on the basis of application type and geography. Report covers the present status and the future prospects of the global Cloud Services market for 2017-2028.
Global Cloud Services Market report forecast to 2028 is a professional and comprehensive research report on the world’s major regional market conditions, focusing on the main regions (North America, Europe and Asia-Pacific) and the main countries (United States, Germany, United Kingdom, Japan, South Korea and China).
COVID-19 Impact on Market:
The accurate COVID-19 outbreak first began in Wuhan (China) in December 2019, and since then, it has spread around the globe at a fast pace. China, Italy, Iran, Spain, the Republic of Korea, France, Germany, and the US are among the worst-affected countries in terms of positive cases and reported deaths, as of March 2020. The COVID-19 outbreak has affected economies and industries in various countries due to lockdowns, travel bans, and business shutdowns. The global food and beverage industry is one of the major industries facing serious disruptions such as supply chain breaks, technology events cancellations, and office shutdowns as a result of this outbreak. China is the global manufacturing hub, with the presence of and the largest raw material suppliers. The overall market breaks down due to COVID-19 is also affecting the growth of thebaconmarket due to shutting down of factories, obstacle in supply chain, and downturn in world economy.
To Know How COVID-19 Pandemic Will Impact Cloud Services Market/Industry- Request a demo copy of the report- https://www.researchreportsworld.com/enquiry/request-covid19/20991922
Cloud Services Market Segment by Type:● SaaS ● IaaS ● PaaS ● BPaaS ● DaaS ● Cloud Managed Services ● Cloud Professional Services
Cloud Services Market Segment by Applications:● BFSI ● Telecommunications ● IT and ITeS ● Government and Public Sector ● Retail and Consumer Goods ● Manufacturing ● Energy and Utilities ● Media and Entertainment ● Healthcare and Life Sciences ● Others
Cloud Services Market Segment by Region:● North America (the United States, Canada and Mexico) ● Europe (Germany, UK, France, Italy, Russia and Turkey, etc.) ● Asia-Pacific (China, Japan, Korea, India, Australia and Southeast Asia (Indonesia, Thailand, Philippines, Malaysia, and Vietnam)) ● South America (Brazil etc.) ● The Middle East and Africa (North Africa and GCC Countries)
The report offers exhaustive assessment of different region-wise and country-wise Cloud Services market such as U.S., Canada, Germany, France, U.K., Italy, Russia, China, Japan, South Korea, India, Australia, Taiwan, Indonesia, Thailand, Malaysia, Philippines, Vietnam, Mexico, Brazil, Turkey, Saudi Arabia, U.A.E, etc. Key regions covered in the report are North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.
For the period 2017-2028, the report provides country-wise revenue and volume sales analysis and region-wise revenue and volume analysis of the global Cloud Services market. For the period 2017-2021, it provides sales (consumption) analysis and forecast of different regional markets by Application as well as by Type in terms of volume.
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Key Questions Answered in The Report:● What are the strengths and weaknesses of the key vendors? ● Who are the Leading key players and what are their Key Business plans in the near future? ● What will be the Cloud Services market growth rate and size in the coming year? ● What are the main key factors driving the global Cloud Services market? ● What are the key market trends impacting the growth of the global Cloud Services market? ● Which are Trending factors influencing the market shares of the top regions across the globe? What is the impact of Covid-19 on the current industry? ● Who are the key market players and what are their strategies in the global Cloud Services market? ● What are the market opportunities and threats faced by the vendors in the global Cloud Services market? What industrial trends, drivers, and challenges are manipulating its growth? ● What are the key outcomes of the five forces analysis of the global Cloud Services market?
Reasons to Purchase this Report:● Analyzing the outlook of the market with the accurate trends and SWOT analysis. ● Market dynamics scenario, along with growth opportunities of the market in the years to come. ● Market segmentation analysis including qualitative and quantitative research incorporating the impact of economic and non-economic aspects. ● Regional and country level analysis integrating the demand and supply forces that are influencing the growth of the market. ● Market value (USD Million) and volume (Units Million) data for each segment and sub-segment ● Competitive landscape involving the market share of major players, along with the new projects and strategies adopted by players in the past years. ● Comprehensive company profiles covering the product offerings, key financial information, accurate developments, SWOT analysis, and strategies employed by the major market players.
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Major Points from Table of Contents:
1 Study Coverage
1.1 Cloud Services Revenue in Cloud Services Business (2017-2022) and (USD Million) Introduction
1.2 Global Cloud Services Outlook 2017 VS 2022 VS 2028
1.2.1 Global Cloud Services Market Size for the Year 2017-2028
1.2.2 Global Cloud Services Market Size for the Year 2017-2028
1.3 Cloud Services Market Size, United States VS Global, 2017 VS 2022 VS 2028
1.3.1 The Market Share of United States Cloud Services in Global, 2017 VS 2022 VS 2028
1.3.2 The Growth Rate of Cloud Services Market Size, United States VS Global, 2017 VS 2022 VS 2028
1.4 Cloud Services Market Dynamics
1.4.1 Cloud Services Industry Trends
1.4.2 Cloud Services Market Drivers
1.4.3 Cloud Services Market Challenges
1.4.4 Cloud Services Market Restraints
1.5 Study Objectives
1.6 Years Considered
2 Cloud Services by Service Model
2.1 Cloud Services Market Segment by Service Model
2.1.6 Cloud Managed Services
2.1.7 Cloud Professional Services
2.2 Global Cloud Services Market Size by Service Model (2017, 2022 and 2028)
2.3 Global Cloud Services Market Size by Service Model (2017-2028)
2.4 United States Cloud Services Market Size by Service Model (2017, 2022 and 2028)
2.5 United States Cloud Services Market Size by Service Model (2017-2028)
3 Cloud Services by Application
3.1 Cloud Services Market Segment by Application
3.1.3 IT and ITeS
3.1.4 Government and Public Sector
3.1.5 Retail and Consumer Goods
3.1.7 Energy and Utilities
3.1.8 Media and Entertainment
3.1.9 Healthcare and Life Sciences
3.2 Global Cloud Services Market Size by Application (2017, 2022 and 2028)
3.3 Global Cloud Services Market Size by Application (2017-2028)
3.4 United States Cloud Services Market Size by Application (2017, 2022 and 2028)
3.5 United States Cloud Services Market Size by Application (2017-2028)
4 Global Cloud Services Competitor Landscape by Company
4.1 Global Cloud Services Market Size by Company
4.1.1 Top Global Cloud Services Companies Ranked by Revenue (2021)
4.1.2 Global Cloud Services Revenue by Player (2017-2022)
4.2 Global Cloud Services Concentration Ratio (CR)
4.2.1 Cloud Services Market Concentration Ratio (CR) (2017-2022)
4.2.2 Global Top 5 and Top 10 Largest Companies of Cloud Services in 2021
4.2.3 Global Cloud Services Market Share by Company Type (Tier 1, Tier 2, and Tier 3)
4.3 Global Cloud Services Headquarters, Revenue in Cloud Services Business (2017-2022) and (USD Million) Type
4.3.1 Global Cloud Services Headquarters and Area Served
4.3.2 Global Cloud Services Companies Revenue in Cloud Services Business (2017-2022) and (USD Million) Type
4.3.3 Date of International Companies Enter into Cloud Services Market
4.4 Companies Mergers and Acquisitions, Expansion Plans
4.5 United States Cloud Services Market Size by Company
4.5.1 Top Cloud Services Players in United States, Ranked by Revenue (2021)
4.5.2 United States Cloud Services Revenue by Players (2020, 2021 and 2022)
5 Global Cloud Services Market Size by Region
5.1 Global Cloud Services Market Size by Region: 2017 VS 2022 VS 2028
5.2 Global Cloud Services Market Size by Region (2017-2028)
5.2.1 Global Cloud Services Market Size by Region: 2017-2022
5.2.2 Global Cloud Services Market Size by Region (2023-2028)
6 Segment in Region Level and Country Level
6.1 North America
6.1.1 North America Cloud Services Market Size Growth 2017-2028
6.1.2 North America Cloud Services Market Facts and Figures by Country (2017, 2022 and 2028)
6.1.3 United States
6.2.1 Asia-Pacific Cloud Services Market Size Growth 2017-2028
6.2.2 Asia-Pacific Cloud Services Market Facts and Figures by Region (2017, 2022 and 2028)
6.2.5 South Korea
6.2.8 China Taiwan
6.3.1 Europe Cloud Services Market Size Growth 2017-2028
6.3.2 Europe Cloud Services Market Facts and Figures by Country (2017, 2022 and 2028)
6.4 Latin America
6.4.1 Latin America Cloud Services Market Size Growth 2017-2028
6.4.2 Latin America Cloud Services Market Facts and Figures by Country (2017, 2022 and 2028)
6.5 Middle East and Africa
6.5.1 Middle East and Africa Cloud Services Market Size Growth 2017-2028
6.5.2 Middle East and Africa Cloud Services Market Facts and Figures by Country (2017, 2022 and 2028)
6.5.4 Saudi Arabia
7 Company Profiles
7.1.1 Microsoft Company Details
7.1.2 Microsoft Business Overview
7.1.3 Microsoft Cloud Services Introduction
7.1.4 Microsoft Revenue in Cloud Services Business (2017-2022)
7.1.5 Microsoft accurate Development
Continued . . .
With tables and figures helping analyze worldwide Global Cloud Services market trends, this research provides key statistics on the state of the industry and is a valuable source of guidance and direction for companies and individuals interested in the market.
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By eliminating hardware requirements, customers gain additional deployment flexibility
SAN FRANCISCO, June 28, 2022 /PRNewswire/ -- Scality announced today that Scality ARTESCA lightweight, cloud-native object storage software is now officially supported on VMware vSphere/ESXi virtualization environments. This provides production-level ARTESCA virtual machine (VM) support for vSphere users, with functionality equal to that on physical servers, along with additional deployment flexibility. Virtual machine support is especially valuable in this time of supply chain issues that are causing long lead times for physical storage server hardware, which can delay enterprise priorities.
Click to Tweet: @Scality offers enterprise-grade support of ARTESCA on @Vmware virtual machine environments: https://ctt.ac/p01CE+ #datamanagement #datastorage
Enterprise-grade storage has historically required hardware with integrated processing, memory and disk capacity. Scality was a pioneer in breaking through the needs for customized hardware with a 100% focus on software and an ability to leverage standard server platforms. Now, ARTESCA again breaks away from traditional storage requirements with the ability to support production-level workloads on flexible, commonly used VMware vSphere virtual infrastructures including support for VMware vSAN and live migration capabilities.
In addition to providing customers with more flexibility in deployment options, this enables partners and resellers to more rapidly deliver solutions to customers by sidestepping supply chain disruptions to provide faster time to revenue.
Launched in 2021, Scality ARTESCA is redefining object storage for the new cloud-native era. It provides both a small footprint at the edge and scalability for the data center. Designed for fast access anywhere data lives, ARTESCA uniquely combines lightweight, cloud-native object storage design with true enterprise-grade capabilities.
Paul Speciale, chief marketing officer, Scality, said: "Ongoing supply chain disruptions hamper business goals and growth. We're supporting ARTESCA software-based object storage on VMWare's ubiquitous vSphere environment to offer a solution that bypasses current supply conditions by eliminating new hardware requirements. Companies can move forward with the data storage and management they need."
Scality® storage propels companies to unify data management no matter where data lives — from edge to core to cloud. Our market-leading file and object storage software protects data on-premises and in hybrid and multi-cloud environments. With RING and ARTESCA, Scality's approach to managing data across the enterprise accelerates business insight for sound decision-making and maximum return on investment. To compete in a data-driven economy, IT leaders and application developers trust Scality to build sustainable, adaptable solutions. Scality is recognized as a leader by Gartner and IDC. Follow us @scality and LinkedIn. Visit www.scality.com, or subscribe to our company blog.
View original content to download multimedia:https://www.prnewswire.com/news-releases/scality-offers-enterprise-grade-support-for-artesca-on-vmware-vsphere-301576275.html
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Broadcom’s $69bn acquisition of cloud software company VMware is set for a lengthy antitrust investigation in Brussels over regulatory concerns that the deal will harm competition across the global technology industry.
Broadcom is already in preliminary discussions with EU officials who will be looking into worries that the merger may lead to abusive behaviour, including potential future price rises by the US chipmaker, three people with direct knowledge of the transaction said.
Many large acquisitions receive similar interrogation, known in EU circles as a “phase 1” investigation, which typically takes a few months to complete.
But those close to the situation suggest that EU authorities plan to push forward with a more detailed “phase 2” investigation, which could take well over a year and may ultimately derail the deal altogether. Nvidia eventually walked away from a proposed $66bn purchase of chip designer Arm after being subject to a lengthy EU antitrust probe.
Broadcom did not immediately respond to requests for comment.
The company’s acquisition of VMware is among the largest in the history of the technology industry, second only to Microsoft’s proposed $75bn purchase of games maker Activision Blizzard.
Opponents of the deal, which include some existing VMware clients, have written to the EU to argue VMware’s customers could in future be tied into buying Broadcom services.
They point to two accurate transactions led by Broadcom, its $18.9bn takeover of CA Technologies in 2018 and its $10.7bn deal to buy Symantec’s enterprise security business a year later as accurate examples of how the US chipmaker risks undermining competition. In both deals, they claimed, Broadcom raised prices.
These concerns are being aired before senior EU officials, including competition chief Margrethe Vestager, even though Broadcom is unlikely to formally file the acquisition for review by antitrust authorities until after the summer break, according to people with knowledge of the process.
Further regulatory scrutiny is expected to come from the US, while the UK and China could still launch probes.
The chipmaker has already fought cases against the European Commission for alleged anti-competitive practices. In October 2020, Brussels accepted commitments by the US group to ensure competition in the chipset market for modems.
Broadcom has emerged as one of the largest chipmakers in the world on the back of a roll-up spree led by Hock Tan, its deal-hungry chief executive for more than a decade.
The Malaysian American executive was blocked from further consolidating the semiconductor industry in 2019. The Federal Trade Commission accused Broadcom of being a monopolist in the sector.
The regulatory attack led Tan to shift his buying attention to software and cloud services companies, a move that aims to turn Broadcom into a broader tech conglomerate.
Last November, the FTC prohibited Broadcom from asking for customers to buy bundles, called “exclusivity” or “loyalty” agreements, in its sale of semiconductors for internet devices. It also prohibited Broadcom from “retaliating against customers for doing business with Broadcom’s competitors”.
“The regulators are going to take a hard look at [the VMware deal] just because this is Broadcom and a large tech transaction,” said Andy Li, a senior analyst at research firm CreditSights.
Broadcom will push back on these fears, according to people close to the company, by arguing that it is not a merger between competitors so will not lead to increased market power. It will also argue the deal is unlikely to raise prices or undermine the quality of the service or have any negative impact on innovation.
Broadcom will also dismiss any comparison to Nvidia’s failed acquisition of Arm, where Nvidia’s competitors were dependent on licensing arrangements for Arm’s chips.
But trade associations, representing hundreds of companies that are clients of VMware, including France’s Cigref, sent a letter this week to regulators in Brussels asking them to act pre-emptively to block the deal due to concerns over anti-competitive practices.
Additional reporting by Harriet Agnew in London and Richard Waters in San Francisco
One thing to start: Billionaire hedge fund manager Ken Griffin is moving his firm Citadel to Miami from Chicago, following his earlier threats to leave the city over rising crime rates.
Welcome to Due Diligence, your briefing on dealmaking, private equity and corporate finance. This article is an on-site version of the newsletter. Sign up here to get the newsletter sent to your inbox every Tuesday to Friday. Get in touch with us anytime: Due.Diligence@ft.com
In today’s newsletter:
Deutsche Bank takes action on WhatsApp
EU regulators test Broadcom’s M&A plans
Revlon becomes a meme stock?
Deutsche Bank’s chief executive Christian Sewing and his top executives are waiving a fraction of their 2021 bonuses. Why? They want to show they’re taking some responsibility for the use of unauthorised messaging apps at the bank.
In what is perhaps the clearest sign yet of just how scared bankers are of the regulatory crackdown on unauthorised messaging, Deutsche’s supervisory board accepted an offer from Sewing and nine other members of the bank’s executive board to forego €75,000 each in variable pay, four people familiar with the matter told the FT’s Olaf Storbeck and Stephen Morris.
Readers will no doubt be familiar with the “text messaging bullshit”, as a US banker put it to DD last week, that has rocked lenders from Wall Street to Europe’s top financial hubs.
Deutsche is one of several financial institutions under investigation by US regulators over employees’ use of personal messaging apps, which ramped up during lockdowns.
Sewing has previously exchanged friendly WhatsApp messages with the controversial businessman Daniel Wruck, who had been dropped by the bank as a client after a number of potentially suspicious payments. Paul Achleitner, the bank’s chair, used WhatsApp to discuss bank-related topics, according to people familiar with the matter.
The voluntary clawbacks by Deutsche executives were first discussed after JPMorgan Chase agreed in December to pay $200mn in fines for messaging-related incidents.
Credit Suisse this month removed a senior investment banker after he was found to have used unapproved messaging applications with clients, as DD’s Ortenca Aliaj and the FT’s Joshua Franklin revealed. A London-based HSBC trader met a similar fate around the same time.
It isn’t clear how far the moves will go towards avoiding more serious repercussions from US and EU regulators.
Deutsche’s board has decided to charge the same penalty to all board members, so as to not single out any individual for the misuse of messaging applications and instead send a “signal” to the supervisory board, said one person familiar with the matter.
Still, the fines are hardly ruinous. The €75k fine equates to just 1.4 per cent of Sewing’s €5.2mn bonus, part of an €8.8mn total pay package. Chief transformation officer Rebecca Short will suffer the biggest hit, relinquishing 3 per cent of her bonus.
We are interested to hear about how the industry is responding to the communication crackdown. No need to text us — send your thoughts to firstname.lastname@example.org.
Hock Tan, the aggressive dealmaker who built Broadcom into one of the world’ largest technology companies, negotiated his $69bn takeover of VMware in a whirlwind two-week push this May that culminated with a private meeting at VMware chair Michael Dell’s Austin mansion.
Actually completing the deal, which would transform Broadcom from predominantly a semiconductor company into a technology conglomerate, will take far longer, if Tan can get it done at all.
The takeover is set for a lengthy antitrust investigation in Brussels. Customers of VMware in Europe, including Germany, France and Belgium are worried that the deal will lead to the US chipmaker raising prices.
Broadcom is already in preliminary discussions with EU officials, three people with direct knowledge of the transaction said. The company will argue that because it isn’t a merger between competitors, it doesn’t pose a threat of increased market power.
Still, it shouldn’t claim victory too quickly, according to those directly involved. “Billions are involved. This is too hard to ignore,” said one of the people.
Brussels isn’t the only jurisdiction where the transaction is facing lengthy probes. The UK and China may also end up opening processes.
The antitrust challenge has similarities to Nvidia’s failed effort to purchase UK-based chip designer Arm for $66bn.
Regulators feared that Nvidia would limit the ability for competitors to license Arm’s designs. Though Nvidia denied those intentions, the deal was blocked and ultimately collapsed.
When the Malaysian-American executive pressed a $142bn takeover of chipmaker Qualcomm, he sought help in Washington by redomiciling Broadcom to the US and participating in photos at the White House supporting then-president Donald Trump’s corporate tax cuts.
But Washington stymied the deal weeks later, a humiliating setback that pushed Tan into software deals.
Known on Wall Street as a cost-cutter who loathes what he calls “shiny new objects”, or the launching of new products that steal corporate resources, Tan must uncover added dealmaking finesse.
While his first two software targets were stagnant businesses ripe for cuts, VMware is a crown jewel that was vital to the massive windfall Michael Dell and Silver Lake generated by buying its parent company EMC in 2017.
Unlike with Qualcomm, Tan isn’t going at his VMware deal alone and facing a hesitant seller. In Dell and Silver Lake, which own a combined 50 per cent of VMware, Tan has powerful and highly-supportive backers.
Winning global antitrust approvals will be a test of whether Tan’s M&A model can work at scale.
After his investment in beauty group Revlon took a turn for the worse earlier this year, New York’s tabloid-famous billionaire Ron Perelman sold his oceanfront East Hampton estate for $84.5mn as he moved to tackle his debts.
Now that the cosmetics company has filed for bankruptcy, an army of retail traders has been happy to turn the squeeze on Perelman’s personal finances into their gain by cornering the small amount of Revlon shares that trade on public markets.
Revlon’s share price catapulted in accurate days from about $1 to more than $7, the latter implying a current market capitalisation of nearly $400mn. That’s not too bad for a company that has spent the past week in bankruptcy court, as DD’s Sujeet Indap points out.
The obvious comparison here is the car rental company Hertz, which, after being crushed by lockdowns and filing for Chapter 11 bankruptcy in May of 2020, charted a miraculous comeback after frenzied retail traders set in motion one of the most remarkable corporate restructurings in American history.
But the market mayhem that birthed “meme stocks” such as Hertz and GameStop is ancient history. Revlon would not only have to confront its ballooning debts, but soaring inflation and a looming recession.
And if a retail trader is to dismiss all that, as Sujeet explains, there’s the fact that it remains almost certainly insolvent beyond its current money troubles. Its creditors are likely to own the company after bankruptcy. Perelman owns about 85 per cent of the 54mn shares outstanding, meaning that there’s not much Revlon stock left to short in the first place.
All that is to say that DD has been left scratching our heads over why Redditors have chosen Revlon as their meme stock du jour. Unless the answer is the most obvious one: because it’s fun.
Morgan Stanley’s head of external affairs Shelley O’Connor plans to retire after nearly four decades at the investment banking group.
Britain’s former top civil servant, Lord Mark Sedwill, is joining BAE Systems as a non-executive director as geopolitical tensions prompt governments to review their defence budgets.
Barclays has hired Arif Vohra as co-head of investment banking financial institutions group in Europe, Middle East and Africa. He joins from Bank of America where he held the same position.
Houlihan Lokey has appointed Zili Shao, chair and founder of Chinese private equity fund MountVue Capital Management and the former chair and chief executive of JPMorgan China, as a senior adviser.
Citigroup has hired Joseph Bonanno as global head of data, digital and innovation for securities services. He previously served in a similar role at Morgan Stanley.
Feeling the pinch As the era of easy access to cash comes to an end, European dealmakers are finding it increasingly difficult to get funding for their takeovers, Bloomberg reports.
The new Hong Kong The plight of Hong Kong pro-democracy activist Claudia Mo is also a tale of China’s increasingly draconian rule over the city, this FT magazine piece chronicles.
Bad break-up In a move that would have been unthinkable just two years ago, Alibaba and Ant Group have begun untangling their operations, competing for clients and even striking alliances with respective rivals as Beijing increases its corporate crackdown, Reuters reports.
Polymetal appoints new auditor to replace Deloitte (FT)
BC Partners acquires Havea for $1.16bn (Reuters)
SumUp struggles to €8bn valuation as tech sell-off hits UK fintech (FT + Lex)
UK ‘minded to accept’ conditions on £2.6bn deal for defence specialist Ultra (FT)
Rogers-Shaw M&A hinges on Shaw Mobile sale (Reuters)
Ireland’s AIB fined €83 mn over tracker mortgage scandal (FT)
Stellantis invests €50mn in lithium start-up to secure car battery metals (FT)
Monte dei Paschi: spot the snag with a turnround reliant on low bad loans (Lex)