October 14, 2013
Volume XLV, Issue 8
Don't Miss CLOUD COMPUTING WEST 2013
Why do you need to SIGN-UP NOW for CLOUD COMPUTING WEST 2013 (CCW:2013)? This year's themes are "Revolutionizing Entertainment & Media" and "The Impact of Mobile Cloud Computing & Big Data." CCW:2013 takes place less than two weeks from now — October 27th-29th — at The Cosmopolitan in Las Vegas, NV.
Find out before anyone else how major players in the Media & Entertainment Sector — like ABC-Disney-ESPN, Comcast, DirecTV, Netflix, Sony Games, Warner Bros., etc. — intend to exploit cloud-based solutions in 2014… and just as important, what they won't be doing in the cloud anytime soon.
Be the first to learn what mobile cloud computing movers-and-shakers — such as AT&T, Dell, Hewlett-Packard, NTT Data, Sprint Nextel, Toshiba, etc. — have in store for next year to dramatically accelerate "Content Everywhere"… and the already exploding "Bring-Your-Own-Device (BYOD)" phenomenon.
Preview where the top Cloud Computing Leaders — including Amazon Web Services (AWS), IBM, Microsoft, Oracle, Rackspace, TransLattice, etc. — plan to take the industry in 2014… and have your questions about what these new directions mean to you personally answered by them.
Hear the warnings from the most insightful analysts, advocates, and industry observers — like ABI Research, CDT, Hughes Hubbard, and the authors of 21st Century Television: The Players, The Viewers, The Money and Securing the Cloud, etc. — about what could burst the Cloud Computing Bubble for some entities… and how to leverage efforts and innovations already in progress to blow away obstacles standing in the way of success.
And the most important reason you MUST ATTEND — CCW:2013 is the single best way to prepare yourself with the knowledge, resources, and contacts you need to advance in your career during 2014 amidst the highly kinetic activities and rapidly expanding markets developing around Cloud Computing.
You'll network with speakers, featured delegates, and exhibitors — in addition to the above participants — ranging literally from A10 Networks to ZYNC Render.
DCINFO readers are encouraged to get actively involved. Please click here for exhibiting and sponsoring information and here to apply to speak at CCW:2013.
GOVERNMENT VIDEO IN THE CLOUD at GVE 2013
When the US Federal Government reopens, the need for cloud solutions for producing, storing, distributing, and analyzing government-owned video content will be greater than ever.
The DCIA will present GOVERNMENT VIDEO IN THE CLOUD (GVIC), a new Conference within the Government Cloud Expo 2013 on Wednesday December 4th at the Washington Convention Center in Washington, DC. The CCA will offer sponsorship opportunities for this event.
Government Video Expo, co-located with InfoComm's GovComm, brings the east coast's largest contingent of video production, post, digital media, and broadcast professionals together with the government AV/IT specialists. The combined event features over 150 exhibits and nearly 6,000 registrants.
The DCIA's GVIC will focus on cloud solutions for government video, including intelligence, surveillance, and reconnaissance; and other use cases such as agency communications and law enforcement.
Please click here if you'd like to speak at this new event. The program has speaking slots for end-users to present case studies of their experiences as well as executives and innovators from the cloud solutions provider sector.
Two keynotes and panel discussions and four case studies will highlight the very latest advances in cloud-based solutions that are revolutionizing government video. Special attention will be given to the impact of cloud computing on producing, storing, distributing, and analyzing government-owned video content.
There will be five major program topics:
Case studies on how cloud-based solutions are being deployed for intelligence, surveillance, and reconnaissance video — successes and hurdles that remain to be overcome; the benefits of government mobile communications video services accessible in the cloud anytime from anywhere — and related security challenges; how cloud-based video solutions will continue to provide new capabilities for law enforcement — and how this changes participant roles; what cloud solutions providers are doing to help manage — and spur — the migration to secure interoperable cloud services to facilitate intra-agency access to video archives; and some caretakers of government video assets find this technology overwhelmingly threatening and disruptive — others see enormous new opportunities.
The GVIC opening keynote will offer an "Update on Cloud Video Services Adoption in the Public Sector." How are branches of the military and agencies of government progressing in their migration to cloud-based video solutions? What cloud video service offerings are the most beneficial and why
The first two case studies will be: "Cloud Solutions for Government Video Production." How can cloud computing being applied to workflow processes for government video from collaboration to editing to applying metadata to transcoding? And "Cloud-Based Management of Government Video Assets." Which cloud deployment and service models are best for securely transferring and supporting access to highly sensitive visual data?
The first GVIC panel will cover "Considerations for Creating Government Video in the Cloud." What criteria should be employed in selecting cloud solutions for production tasks ranging from conceptualization of original video to aggregation of unstructured multimedia field data?
After a networking break, the second GVIC keynote will address "Security & Reliability Concerns Unique to Government Video in the Cloud." How can encryption and process control techniques from the private sector be applied to protect the confidentiality of video assets associated with the missions of military and government agencies?
The next two case studies will cover "Distribution of Government-Owned Video from the Cloud. What cloud-based solutions are available to safely and dependably share multimedia data among multiple users of otherwise incompatible clouds? And "Analysis of Aggregated Government Video Content." How can big data applications and predictive analytics be combined to facilitate improved and expanded utilization and support interoperability?
The closing GVIC panel discussion will examine "Considerations for Cloud Dissemination of Government Video." What lessons learned from private sector business intelligence (BI) and mobile device management (MDM) in the cloud can be applied to delivery systems for sensitive government video?
The conference agenda and speakers list to be included in promotional materials and the conference program are being finalized now. If you'd like to participate, as a speaker, contact the DCIA at your earliest convenience — TODAY IF POSSIBLE. And if you'd like to sponsor this event, please contact the CCA.
Report from CEO Marty Lafferty
 Is the controversy surrounding NSA surveillance a threat to the continued advancement of your business?
Or is this an opportunity for responsive solutions, legislative reform, and new business practices to accelerate growth?
The DCIA and CCA are providing a way for you to make your voice heard, understand the real impacts on the cloud computing industry, and come away with a clear action plan that will help increase sales and boost profitability.
Register today for CLOUD COMPUTING WEST 2013 (CCW:2013) taking place October 27th-29th at The Cosmopolitan in Las Vegas, NV.
And participate in the timely and important Sunday afternoon Opening Session TOWN HALL MEETING ON THE NSA PRIVACY SCANDAL AND THE CLOUD COMPUTING INDUSTRY.
What can be done in response to this challenge so that your business actually improves as a result and the industry continues to advance? What improvements in architecture, encryption, and data processing methods could mitigate threats like this through new technological solutions?
Will the NSA controversy spur passage of new laws and the establishment of new regulations — how can legislative reform benefit the cloud computing industry? What business practices, voluntary industry standards, and other private sector actions can we take individually and jointly to overcome this issue and help expand our businesses?
Our newly added Town Hall Meeting will assess the impact of this controversy, outline the legislative reform process underway in Congress, and drive for proactive responses the cloud computing industry can make to foster growth.
We'll begin with a series of individual discussions including a topic introduction from the DCIA.
Les Ottolenghi, Global CIO, Las Vegas Sands Corporation will lead a session on "Concerns of Enterprise End-Users Regarding Data Privacy and Unauthorized Access."
Has this scandal affected your business and if so how?
What should Congress do to mitigate this and prevent a recurrence?
A coalition of more than two-dozen affected parties is now advocating federal legislative reform to ensure the privacy of our data stored in the cloud.
Next you'll learn first-hand from Jim Dempsey, Vice President for Public Policy, Center for Democracy and Technology (CDT) about the very latest developments on the Hill in a discussion providing "Background on ECPA and Update on Status of Legislative Reform."
Then Tom Hopkins, Technical Product Manager, Cloud Products, Rackspace, will lead a session on "Potential Areas for Technological Solutions to Mitigate the Problem and Associated Pitfalls."
And following Tom, Gerry Stegmaier, Of Counsel, Wilson Sonsini Goodrich & Rosati, will lead a discussion of "Potential Areas for Business Practice Changes to Mitigate the Problem and Associated Pitfalls."
Next, we'll invite Peter Rafelson, CEO of Rafelson Media, and Larry Freedman, Partner at Edwards Wildman Palmer, to join the above participants in a larger round-table discussion that will provide for audience interaction and Q&A to extend the discussion of "Concerns of End-Users and Providers;" "Legislative Reform Efforts and Benefits;" "Potential Technological Solutions;" "Potential Business Practices Solutions;" and "Additional Action Items."
And finally, Jim Dempsey will close the Town Hall Meeting by outlining "Next Steps in the ECPA Reform Campaign."
How can the cloud computing industry respond to increase our growth prospects? This is your chance to better understand the impacts of this controversy on business, to make your voice heard on this vital issue, and to come away with a clear action plan that will help expand sales and boost profitability through more advanced solutions and improved business practices.
Meanwhile for related reading, please check out How To Cushion The Impact Of A Data Breach: steps security pros should take to understand what happened and prevent it from happening again; and Don't Be The Security Pro Who Cried Wolf: the effectiveness of a warning depends on a security pro's credibility and the supporting data.
SIGN-UP NOW for CCW:2013. Please click here for exhibiting and sponsoring information and here to apply to speak at this event. Share wisely, and take care.
Cloud Computing Storage Keeps Data Safe
Excerpted from Midsize Insider Report by Marissa Tejada
Cloud computing storage is gaining value for firms that are seeking a cost-effective, scalable disaster recovery (DR) plan. As a result, more data will be stored in the cloud. Midsize companies in particular are considering storage in the cloud as business continuity becomes more of a priority. IT professionals want to be sure that they can recover precious data no matter what happens.
According to a recent survey by TwinStrata, 80 percent of IT professionals surveyed are using cloud storage or plan to do so. Other aspects of the study, which was featured in eWeek, found that the cloud is gaining ground at firms. When it comes to disaster recovery, 60 percent of IT professionals said they could recover within a day, bringing up both apps and data kept in another location.
Although there is an increase in cloud storage adoption, the survey found that about 55 percent of respondents sent only 10 TB to the cloud. Twenty-five percent of IT professionals say they have more than 50 TB of data. It seems firms are turning to other types of backup. One in three firms relies on off-site tape storage for its backup strategy, compared to one in 10 IT professionals who relies on cloud storage for backup and disaster recovery strategy.
Every organization has different needs with respect to its backup and DR strategy. According to TwinStrata's findings, cloud computing storage is certainly gaining credibility among IT departments. While the amount of data may rank low from some perspectives, it will almost certainly increase in time.
The fact is that more and more IT professionals at midsize firms want the assurance that they can access the company's data in a timely manner, no matter what the disaster. As a result, disaster-recovery-as-a-service (DRaaS) is becoming more popular as firms consider that it offers a wide network service area that allows them to create timely backups to off-site servers. As IT departments witness the benefits of DRaaS, more data will be entrusted to the cloud.
IT professionals at midsize firms must think about how they will spend their limited resources on IT projects such as DR. The cloud helps them to meet their goals by saving cost and by reducing or eliminating recovery testing. IT professionals at growing firms can turn to the expertise of vendors that understand their need to use DRaaS to support more critical applications that require shorter recovery times.
Companies, particularly midsize firms, are becoming more comfortable with the cloud for storage and DR. As time goes on, an increasing number of companies will be storing much more of their data in the cloud. Vendors will also offer more affordable and effective solutions in the DRaaS space. With cloud storage as part of a strong DR plan, IT professionals at midsize firms can feel confident that they will recover from any disaster.
Is Your Business Ready for the Digital Industrial Economy?
Excerpted from BusinessNewsDaily Report by Sara Angeles
A new dawn is on the information technology (IT) horizon. The inevitable and heavy integration of mobile, social collaboration, cloud computing, the Internet of Things, Big Data, and cybersecurity has ushered in a new technological era, analysts say.
IT research and advisory firm Gartner recently held the Gartner Symposium/ITxpo in Orlando, FL, where the company announced that the digital world has arrived, opening doors to a new era in technology: the Digital Industrial Economy.
Gartner analysts posit that in the Digital Industrial Economy, every company will become a technological company, every budget will become an IT budget, and every business will become a digital leader.
"Digitalization exposes every part of your business and its operations to these forces," Peter Sondergaard, Senior Vice President at Gartner and Global Head of Research, said. "It is how you reach customers and constituents, how you run your physical plant, and how you generate revenue or deliver services. Enterprises doing this today are setting themselves apart and will collectively lead the new Digital Industrial Economy."
Sondergaard said the Digital Industrial Economy is divided into three primary areas:
1. Economic Impact of the Internet of Things (IoT)
The IoT combines the physical world and the virtual world, creating a whole new economy for connected devices. In 2009, there were 2.5 billion connected devices with unique IP addresses, such as cellphones and PCs. By 2020, this number will skyrocket to 30 billion connected devices with unique IP addresses, most of which will be products other than cell phones and PCs, such as wearable tech, according to Gartner.
"Computing power will be cheap and covert," Sondergaard said. "We won't know it is there; it will be in our jewelry and in our clothing. We will throw more computers into our laundry in a week than we've used in our lifetimes so far."
Furthermore, these connected devices will reach a value of $1.9 trillion in 2020, benefiting all types of industries, from health care to retail and transportation. IoT revenue in the technology and telecommunications sectors will also exceed $309 billion by 2020, Sondergaard said.
Mobile technology will play an even larger role in the Digital Industrial Economy, as mobile is now the destination platform for all applications, Sondergaard said. By 2017, mobile phones, tablets and ultramobile PCs will represent more than 80 percent of device spending, and half of first-time computer purchases will be tablets.
2. Future of IT Suppliers
The Digital Industrial Economy is shifting the IT vendor landscape, where competition will be central to the vendor-chief information officer (CIO) ecosystem. Whereas top technology companies led the industry in the past, they will struggle to maintain their foothold as cloud and mobile startups are poised to fill new business technology needs.
"What many traditional IT vendors sold you in the past is often not what you need for the digital future," Sondergaard said. "Their channel strategy, sales force and partner ecosystem is challenged by different competitors, new buying centers and changed customer business models. Digitalization creates an accelerated technology-driven startup environment across the globe. Many of the vendors who are on top today — such as Cisco, Oracle, and Microsoft — may not be leaders in the Digital Industrial Economy."
3. Big Data and Security
The interconnectedness of everything will produce unprecedented amounts of data. In addition to the implementation of strategies that will effectively harness, analyze, and interpret this information, cybersecurity will become even more important to keep such valuable data safe in the Digital Industrial Economy.
"The security of embedded technologies that your organization has right now may be the most important operational responsibility you will have in 2020," Sondergaard said. "Digitalization will create new infrastructures and new vulnerabilities in our infrastructures. We recommend that you build a portfolio of security vendors because no single vendor addresses more than a fraction of your problem. Everyone will need to establish more agile security processes."
Cloud Computing 101: It's a Brave New Virtual World
"Cloud Computing 101: It's a Brave New Virtual World" is a new white paper for small business owners (SMBS).
For SMBs, it can be challenging to choose from the variety of digital tools available, particularly with increased concerns of data security, privacy and ownership.
One of the most convenient and easily accessible digital tools available is cloud computing.
In this white paper from American Express OPEN, learn how cloud computing can make running a small business faster, easier and more manageable.
Download the free white paper now.
Cloud Computing Integration On the Rise
Excerpted from Midsize Insider Report by Marissa Tejada
Cloud computing integration is easier than ever, according to new research that found more businesses are confident about the adoption and use of cloud services within their information infrastructures.
Both business and IT professionals don't have as many concerns as they had in the past about integrating the cloud with their operations, according to Saugatuck Technology's "2013 Global Cloud IT Adoption, Use and Benefits Survey," featured in Information Management. Half of respondents reported being concerned about security and privacy issues.
The research firm concluded that the cloud has evolved from an experimental technology to a mainstream technology, and the need for cloud integration will continue to grow over the next five years. At many organizations, according to Saugatuck's findings, IT leaders are making it a priority to implement cloud solutions due to its proven economic and productive benefits. The research predicted that within the next three years there will be an increased need to integrate cloud services with current IT. Within five years, there will be a great demand for pure cloud computing solutions and cloud-to-cloud integration.
Third-platform technologies like virtualization and cloud services are now crossing the line into the mainstream IT category. Traditionally these types of projects were exclusive to large enterprises, but today they are a big consideration for growing firms. The consumerization of IT and the rise of mobility are just a few factors that are pushing midsize businesses to the cloud. IT professionals at midsize firms must manage secure and reliable IT with limited budgets, resources and staff. The cloud has proven to be a secure solution for various IT needs. If integrated properly, growing firms can remain competitive without making as large of an upfront investment as they would have made in the past.
Saugatuck's cloud survey also points out that there are new solutions, including tool kits and solution packs, for the most requested business project needs. Meanwhile, independent software vendors (ISVs) are filling a need and delivering managed integration services as well. These types of services are valuable for IT professionals at midsize firms that are looking to invest in cloud integration. It's critical that a growing firm with limited room for error move ahead with a cloud integration project equipped with the right tools and procedures in place in order to avoid losing precious resources.
More vendors are innovating in the cloud services space, helping firms choose the provider that best fits with their needs and budget. As time goes on, successful cloud integration will become more vital than ever, especially for midsize firms that need to remain competitive in an ever-changing IT landscape that includes mobile, social media, analytics and virtualization.
Why Verizon Needed a Cloud Reboot
Excerpted from Light Reading Report by Carol Wilson
Last week wasn't the first time Verizon took on Amazon in the cloud — that actually happened three years ago, when Verizon launched an on-demand cloud service for small businesses designed to be as easy to deploy as Amazon Web Services (AWS). (See Verizon Takes On Amazon With SMB Cloud Offer.)
What Verizon Enterprise Solutions has just announced, however, was a surprising remake of its enterprise cloud offer into the new Verizon Cloud, addressing what the company has admitted are issues that slowed cloud adoption by the full range of potential business customers, from SMBs right up through to large enterprises. And this time around, the operator may well be putting itself in position to challenge Amazon Web Services LLC . (See Enterprises Not Rushing to Embrace Cloud.)
I say the move was a bit surprising because Verizon has been selling cloud services since even before it acquired Terremark in early 2011, after which it became even more aggressive in the cloud services market, buying Cloudswitch and continuing to develop its portfolio. (See Verizon Taps Terremark for $1.4B and Verizon to Buy CloudSwitch.)
So this almost seems to be late in the game for a complete overhaul, yet that is what Verizon has done, though it describes it as a "re-invent" rather than overhaul.
So why the need to re-invent at this stage?
Because, as Troy Garrison, VP-Cloud Experience, tells me, Verizon was still losing business to AWS, and it was still seeing some of its enterprise customers reluctant to move certain apps/IT processes into the cloud because of ongoing uncertainties. By re-inventing its cloud services and adding a cloud storage product and predictable cloud computing results based on the level of performance chosen by the customer, Verizon is able to go head-to-head with AWS. And by adding software-defined networking (SDN) for flexible customer self-provisioning of network resources, Verizon hopes to differentiate itself substantially from the admitted pioneer and still dominant cloud player.
"The problem people have with cloud is not being able to predict performance of network and storage," Garrison says. "Our enterprise customers told us they couldn't put critical workloads out where they couldn't predict the performance. We are now guaranteeing that."
The SDN capabilities will allow Verizon's cloud customers to set up networks in "whatever IT scheme they want," Garrison adds. "We do not provision the network for them -- we allow them to do it themselves."
That's important because IT departments did not like being told they had to change their approach to buying network resources in order to buy cloud services, Garrison says.
Verizon is rolling out these new capabilities beginning in the fourth quarter of this year.
Another notable aspect of Verizon's re-invention of its cloud services is that it was done in-house. Verizon developed its own software that is running on Advanced Micro Devices chips and micro-servers. Garrison says that happened in part because Verizon couldn't find what it was looking for among its commercial suppliers. But he also admits the company wants to be in control of its cloud services and offers, and developing those capabilities in-house means Verizon isn't at the mercy of any other company's development schedules or processes.
Given the investment Verizon made in both Terremark and Cloudswitch, the in-house approach shouldn't be a surprise -- Verizon has acquired substantial expertise in this space. And clearly, given the essential role that cloud services are expected to play in Verizon's future, the company is enjoying the ability to control its own destiny.
Speaking of control, I'm wondering what the mobile cloud might look like, once Verizon is in full control of its wireless offshoot and in position to more tightly link its now-separate organizations.
AT&T U-verse App Flips On Live TV Streaming
Excerpted from Multichannel News Report by Jeff Baumgartner
AT&T U-verse has added live TV streaming to its authenticated TV Everywhere menu with an app update for iOS devices, including the iPad, iPod Touch, and iPhone, that lets customers access more than 100 channels at home and more than 20 while they're on the go.
Channels with out-of-home rights offered via the U-verse app include AXS TV, Encore, Encore-West, HDNet Movies, NFL Network, NFL RedZone, Pac 12 Network, Pac 12 Bay Area, Pac 12 Los Angles, Showtime, Showtime-West, Showtime Beyond, Showtime Extreme, Showtime Extreme-West, Showtime Family Zone, Showtime Too, Showtime Too-West, Showtime Women, Smithsonian Channel, Starz, Starz-West, The Movie Channel, The Movie Channel West, TMC Xtra, and TMC Xtra-West.
A subset of live channels are also available to authenticated customers via Uverse.com, an AT&T spokeswoman said.
The updated app, offered for free to subscribers who take AT&T's U-family or higher U-verse TV package, will add more live channels and more devices "on an ongoing basis," the company said.
The U-verse app also supports "thousands" of on-demand TV shows and movies, access to extra content about a show being watched (episode information, photos, case and crew data), remote DVR management, and advanced search features.
"By making live TV content available across devices we're enabling our customers to watch TV on their terms when and where they want it," said Mel Coker, Chief Marketing Officer, AT&T Home Solutions, in a statement. "U-verse has always been about delivering a TV experience built around our customers, and this enhancement gives them even more flexibility and control."
AT&T's base of U-verse TV subs eclipsed the 5 million mark in the second quarter after adding 233,000 in the period.
AT&T U-verse joins a growing mix of pay-TV operators that have added a mixture of in-home and out-of-home live TV streaming to their TV Everywhere repertoires.
Last month, Verizon Communications launched an upgrade to the FiOS Mobile App that, for the first time, offered out-of-home access to live TV, starting with nine channels.
Time Warner Cable, meanwhile, has begun to offer up to 11 linear channels (depending on the market) on its TWCTV app for iOS and Android devices, as well as on web browsers.
Scripps Lights Up OTT Video Streaming Service
Excerpted from Multichannel News Report by Jeff Baumgartner
Scripps Networks Interactive has launched ulive, a "digital lifestyle video site and distribution platform" that provides access to a library of on-demand content from the company's stable of cable channels — HGTV, DIY Network, Food Network, Cooking Channel, Travel Channel, and Great American Country (GAC) — as well as a slate of more than 70 new original series from Scripps' "talent and social media stars and bloggers."
In a different twist, content from ulive, including long-form episodes, clips and the new slate of originals, is available to anyone with a broadband connection, not just pay-TV customers.
Scripps debuted the non-authenticated service on Thursday, stressing that the curated approach will help it reach current and new audiences.
While ulive offers access to a limited selection of long-form shows from Scripps-owned channels, none of them are in the TV Everywhere window, ulive President Jeff Meyer said in an interview.
"ulive complements what Scripps is doing with our TV sites as well as the TV Everywhere sites," Meyer said, noting that ulive is focused on "building a new audience" around parenting, wellness and other "lifestyle content."
Scripps has already launched fully-authenticated, branded TV everywhere apps for all of its networks except GAC. Travel Channel, Food Network, Cooking Channel, and HGTV also have launched TV Everywhere offerings on the web and the iOS and Android platforms, while DIY has a web-based version up now and is close to launching its own native apps.
Scripps has not yet developed any native apps tablet and smartphone apps for ulive, but is considering launching them next year if it can determine that there's a payoff. For now, the proprietary, web-based ulive video player supports both Flash and HTML5, and lets users share videos via Facebook, Twitter, Google+, and Pinterest. The player also supports interactive features, including access to recipes and step-by-step instructions.
Ford Motor Company is ulive's initial sponsorship partner. "We're 100% ad-supported, and at this point have no plans to change that," Meyer said.
Originals offered on ulive at launch include "What Will the Maid Think?" Bert Kreischer, host of The Travel Channel's "Trip Flip; Bonkers Awesome!" from food blogger and author Joy the Baker. Other Scripps talent creating original series featured on ulive include Genevieve Gorder ("A Well Designed Life"), Kelsey Nixon ("First Time Mom"), Nadia G ("Sick Kitchens with Nadia G"), and Chris Grundy ("Grillin' Up the Party").
Of the 70 original series developed for ulive, about 35 are already available.
US Cable Companies Should Create Netflix Rival: Malone
Excerpted from Reuters Report by Liana Baker
Cable pioneer John Malone said on Thursday that cable companies should team up to create a rival to Netflix that would deliver programming over the Internet on a national basis.
Cable companies could "solve the problem" of high programming costs by acquiring content for an Internet-based service under one brand that they would sell in a bundle with broadband, Malone said at Liberty Media Corp's annual investor conference.
Malone, who is Chairman of Liberty Media, used the example of Comcast Corp's Xfinity video streaming product one day being shared with the rest of the cable industry to become a national brand.
He added that another alternative would be for Hulu to "be bought and syndicated" by cable companies or for an entrepreneur to create a new product from scratch that the cable industry can get behind. He had said previously that cable companies should make a joint bid for Hulu, the Internet streaming service that was for sale at one point.
The cable industry has a history of working together, and he pointed the creation and funding of HBO, saying it "made us all rich."
A national Internet-based TV service could help the cable industry get back market share from satellite and telecommunications competitors, and also give a boost to smaller cable companies that lack infrastructure.
When asked about whether he still has an appetite for a merger or acquisition, Malone said that, if cable came up with a transformational product to rival Netflix, it would "increase my appetite as an investor to be willing to invest in the business through consolidation."
Malone, whose media holding company has an investment in cable provider Charter Communications made an offer for Time Warner Cable over the summer, but it was rejected, Reuters has reported.
Time Warner Cable shares closed up $6.68, or 6 percent, on Thursday at $116.95 per share.
During a question and answer session with investors, he praised Netflix Chief Executive Officer Reed Hastings and launched into an analysis of Netflix's business model, saying it was big enough to buy exclusive national content at good prices, something the cable industry has struggled with.
"The cable industry has been very slow (which has) created a window of opportunity to the over-the-top (OTT) guys," he said, referring to Internet based TV services such as Netflix.
Wunderlich securities analyst Matthew Harrigan said that Malone's cooperation idea was a good one. But he added it would be difficult to get all the players on the same page because the large companies such as Comcast and Time Warner Cable have more advanced technology than the smaller players.
"It's kind of like herding cats," Harrigan said about cable companies working together
Earlier on Thursday, another one of Malone's companies, Liberty Interactive Corp, said it would split into two tracking stocks, and also create a new company made up of its stake in TripAdvisor.
Cloud Storage and TV Antennas Go to Court
History is repeating itself. In 1984, the Supreme Court decided that Sony had the right to sell Betamax video recorders to consumers, writes CEA President and CEO Gary Shapiro in a recent op-ed. But what would have happened if Sony had lost? "
Such innovations are under attack again, with broadcast-industry giants misappropriating copyright law to shut down startups and restrict consumer freedom," writes Shapiro.
"The Sony case, and other similar precedents, don't fully protect today's innovators." Read more in The Wall Street Journal.
Telefonica's Wayra Shares Data on How It's Fared So Far
Excerpted from TechCrunch Report by Steve O'Hear
Wayra is Telefonica's network of startup accelerators. Running for around 20 months in Latin America, and just a year in Europe, the telecom giant has established 14 Wayra Academies in 12 countries in the cities of Bogota, Mexico City, Buenos Aires, Lima, Madrid, Barcelona, Caracas, Sao Paulo, Santiago de Chile, Munich, London, Dublin, and Prague. That equates to opening an academy every two months.
Today the accelerator network is sharing some data exclusively with TechCrunch on how it's fared so far in its young existence, including key metrics such as how much money it's invested in the startups put through its program, follow-on funding raised, how many companies have entered the dead-pool, and number of exits (spoiler: none so far). Yes, folks, we bring you more startup accelerator numbers.
But first let's backtrack a little and delve briefly into how Wayra operates. Startups accepted into the program receive up to 50k euros in funding, in the form of a convertible note, for which Wayra takes between 7% and 10% equity during any later investment round. They are also housed in one of the Wayra academies where they are supported for a minimum of 6 months, including mentoring and that all-important investor demo day with the aim to raise follow-on funding.
Being attached to a major international telco, one of the draws of Wayra is that synergies can be forged between the participating startups and Telefonica's existing customers. On paper at least, there's also an obvious potential exit path, too.
Since launch, Wayra says it's accepted 295 startups into its program (either graduates or currently under acceleration) in the 12 countries it operates across Europe and Latin America. Of those, 109 are in Europe. In total, it says it's received 20,544 applications to its academies.
Failure rate for its accelerated startups currently runs at around seven percent, with 21 companies entering the dead-pool so far. However, only 7 of those are from Europe, which makes sense given that Wayra's European academies have been running for a significantly shorter time than in Latin America.
Perhaps further reflecting the immaturity of Wayra, it says that to-date none of its startups have been acquired, though it notes that several negotiations are currently taking place. Zooming out, however, it's keen to stress that, although exits are certainly one measure of success, it has a slightly different focus compared to most accelerators in that backing companies who can leverage Telefonica's 317 million customers is also key.
Wayra says that where that happens it's in no rush to push for a sale, giving companies in its program a longer period in "revenue-generating acceleration" than they might find elsewhere. "Unquestionably, right now Wayra's biggest asset is Telefonica. This is something that no other accelerator has," it says.
The total amount of funding that Wayra has invested in its accelerated startups stands at $12.3 million — split between $5.6 million in Europe and $6.7 million in Latin America. Of the 150 or so startups that have graduated, more than half have secured outside funding, including grants as well as other equity investments.
Breaking this down further, approximately 40% of all graduating Wayra startups (and 51% in Europe) have secured non-grant follow on funding (either equity rounds or convertible notes from accredited investors or angels).
In 2013 alone, Wayra says there have been 48 startups (both graduated and currently in the program) that have successfully secured financing in the form of equity rounds or convertible notes. The average in follow-on funding per Wayra startup is $520,000 in Europe, and $445,000 in Latin America. Meanwhile, the total in follow-on funding via third party investors globally is approximately $26.5 million.
The highest follow-on round was in Marfeel (Wayra Barcelona) which raised $2 million, though Wayra says that a higher round of up to $3.3 million will be announced shortly for another of its European startups. In Latin America, the highest round raised by a Wayra startup was $1.35 million by Plazapoints (Wayra Peru).
Wayra says the list of follow-on investors includes Nauta, Globant, BBVA, Elaia, Bertlesman Group, Dad Neos, Mangrove, Greycroft, Caixa Capital, and 500 Startups. Of note is that Telefonica Ventures invested in Wayra-accelerated TaskHub, and Wayra says it's confident that the telco's Amerigo funds will make an investment in some of its portfolio companies. It does, however, seem somewhat disjointed that Telefonica Ventures hasn't participated in more Wayra startup follow-on funding, though this may reflect the fund's Silicon Valley focus.
Overall, while Wayra's openness is appreciated, the story here is mainly that it's too early to tell how well its approach is faring compared to some of the more established and longer-running accelerators either in the U.S. or more specifically Europe. For example, follow-on funding doesn't look overly impressive and Wayra has yet to see a single exit, but again it's very early days. Either way, an accelerator network the size and scope of Wayra that targets Europe and Latin America in equal measure is certainly unparalleled.
To that end, Wayra academies in London, Munich, Prague, Caracas, Lima, and Buenos Aires are currently open for applications. Teams have until October 20th to apply.
Get on the Bus for StopWatching.Us
On October 26th, thousands of people will descend on Washington, DC to tell Congress to stop the NSA's unconstitutional mass surveillance.
If you need help getting to DC, you're in luck.
The StopWatching.Us coalition has arranged for buses to take activists straight from several major cities. Click here to learn more and to reserve your seat on the bus.
In the face of the government shutdown it's easy to feel that we can't achieve progress on any issue.
But as this rally will show, the fight to protect our privacy continues to unite people across party lines, and victory is within our reach.
Click here to reserve your seat on the bus to DC now.
Rallies are more fun when your friends are there. Share the rally site with everyone you know, or invite people to sign up via Facebook.
Meltdowns at NSA Spy Data Center Delay Opening
Excerpted from Ars Technica Report by Jon Brodkin
A massive data center being built by the National Security Agency to aid its surveillance operations has been hit by "10 meltdowns in the past 13 months" that "destroyed hundreds of thousands of dollars worth of machinery and delayed the center's opening for a year," the Wall Street Journal reported last night.
The first of four facilities at the Utah Data Center was originally scheduled to become operational in October 2012, according to project documents described by the Journal. But the electrical problems — described as arc fault failures or "a flash of lightning inside a 2-foot box" — led to explosions, failed circuits, and melted metal, the report states:
The first arc fault failure at the Utah plant was on August 9, 2012, according to project documents. Since then, the center has had nine more failures, most recently on September 25th. Each incident caused as much as $100,000 in damage, according to a project official.
It took six months for investigators to determine the causes of two of the failures. In the months that followed, the contractors employed more than 30 independent experts that conducted 160 tests over 50,000 man-hours, according to project documents.
The 1 million square foot data center, filled with supercomputers and storage equipment to maintain surveillance information, is slated to cost $1.4 billion to construct. One project official told the Journalthat the NSA planned to start turning on some of the computers at the facility this week. "But without a reliable electrical system to run computers and keep them cool, the NSA's global surveillance data systems can't function," the newspaper wrote.
Project officials are still trying to determine the cause of the meltdowns, and they disagree about whether proposed fixes will work. Backup generators have failed repeated tests, cooling systems "remain untested," and "there are also disagreements among government officials and contractors over the adequacy of the electrical control systems."
The Army Corps of Engineers is overseeing construction and promised to make sure the data center is "completely reliable" before allowing it to go online.
Mystery of NSA Billboards Solved: BitTorrent
Excerpted from Los Angeles Times Report by Chris O'Brien
The mystery of Silicon Valley's NSA billboard was solved Tuesday when San Francisco-based BitTorrent revealed that it was behind the campaign.
The billboard along US 101 read: "Your data should belong to the NSA." The company also placed a billboard in New York City that read: "The Internet should be regulated." And one in Washington, DC that read: "Artists need to play by the rules."
In a blog post on Tuesday, the company said it wanted to make a point about people's casual acceptance of the trade-offs between privacy and security.
"We put these billboards up last week in New York, Los Angeles, and San Francisco," wrote Matt Mason, BitTorrent's Vice President of Marketing. "Because we wanted to remind the world what's at stake on the world wide web."
The San Francisco billboard had Bay Area residents speculating about who might have paid for the satiric spot. Rumors had included BitTorrent as a possible candidate, but the company didn't officially confirm it until Tuesday.
The message, of course, happens to sync nicely with BitTorrent's service and general outlook. BitTorrent is a decentralized file-sharing service that swaps bits of pieces of files between users' computers. And the company's bottom line was clear: BitTorrent lets users and artists maintain control over their information rather than big corporations and the government.
Still, the company hoped to sound a larger warning with the campaign.
"This is the generation that will decide whether the Internet is a tool for control, or a platform for innovation and freedom," Mason wrote. "We have an incredible opportunity. We can shape the next one and one hundred years of human connection. A free, open Internet is a force for change, creativity; the backbone of a society where citizens are stakeholders, not data sets."
Coming Events of Interest
CLOUD COMPUTING WEST 2013 - October 27th-29th in Las Vegas, NV. Two major conference tracks will zero in on the latest advances in applying cloud-based solutions to all aspects of high-value entertainment content production, storage, and delivery; and the impact of mobile cloud computing and Big Data analytics in this space.
Government Video Expo 2013 - December 3rd-5th in Washington, DC. Government Video Expo, co-located with InfoComm's GovComm, brings the east coast's largest contingent of video production, post, digital media, and broadcast professionals together with the government AV/IT specialists. The combined event features over 150 exhibits and nearly 6,000 registrants.
GOVERNMENT VIDEO IN THE CLOUD - December 4th in Washington, DC. This DCIA Conference within Government Video Expo focuses specifically on cloud solutions for and case studies related to producing, storing, distributing, and analyzing government-owned video content.
International CES - January 7th-10th in Las Vegas, NV. The International CES is the global stage for innovation reaching across global markets, connecting the industry and enabling CE innovations to grow and thrive. The International CES is owned and produced by the Consumer Electronics Association (CEA), the preeminent trade association promoting growth in the $209 billion US consumer electronics industry.
CONNECTING TO THE CLOUD - January 8th in Las Vegas, NV. This DCIA Conference within CES will highlight the very latest advancements in cloud-based solutions that are now revolutionizing the consumer electronics (CE) sector. Special attention will be given to the impact on consumers, telecom industries, the media, and CE manufacturers of accessing and interacting with cloud-based services using connected devices.
CCISA 2013 – February 12th–14th in Turin, Italy. The second international special session on Cloud Computing and Infrastructure as a Service (IaaS) and its Applications within the 22nd Euromicro International Conference on Parallel, Distributed, and Network-Based Processing.
NAB Show - April 5th-10th in Las Vegas, NV. From broadcasting to broader-casting, NAB Show has evolved over the last eight decades to continually lead this ever-changing industry. From creation to consumption, NAB Show has proudly served as the incubator for excellence — helping to breathe life into content everywhere.
Media Management in the Cloud — April 8th-9th in Las Vegas, NV. This two-day conference provides a senior management overview of how cloud-based solutions positively impact each stage of the content distribution chain, including production, delivery, and storage.
CLOUD COMPUTING EAST 2014 - May 13th-14th in Washington, DC. Three major conference tracks will zero in on the latest advances in the application of cloud-based solutions in three key economic sectors: government, healthcare, and financial services.
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