Tag Archives: amzn

European Pact Legalizes Facebook, Google, Amazon Data Transfers

Privacy advocates railed Monday after the European Union unveiled a 128-page framework for trans-Atlantic data transfers that, the advocates said, amounts to little more than “10 layers of lipstick on a pig.” The document outlines the specifics of the EU-U.S. Privacy Shield, which replaces the 15-year-old Safe Harbor agreement struck down in October in a case that pitted Austrian grad student Max Schrems against Facebook ( FB ). Schrems alleged Facebook misused Europeans’ data in cooperation with a National Security Agency program. Facebook has denied the allegation. U.S. spying tactics fell under scrutiny in 2013 after former NSA contractor Edward Snowden released thousands of classified documents allegedly detailing mass surveillance by the government. Amazon, Alphabet Continue Transfers The Privacy Shield, approved verbally in early February, requires the U.S. to abide by notoriously strict European privacy laws while handling data belonging to any of the region’s 500 million citizens. On Monday, the EU released the actual documents that lift tech giants Amazon ( AMZN ), Google parent  Alphabet ( GOOGL ) and Facebook from the legal limbo of transporting data across the Atlantic, prompting the European outcry. Under the new framework, the U.S. intelligence community won’t be making any compromises: The U.S. can continue “bulk” intelligence collection for six specific purposes  — namely, detecting and countering certain activities of foreign powers, counter-terrorism, counter-proliferation, cybersecurity, detecting and countering threats to the U.S. and allied armed forces, and combating transnational criminal threats. The framework also creates a new ombudsman under the U.S. State Department to deal with complaints by European citizens of how the U.S. handles their data. Reuters reported Catherine Novelli, undersecretary of State for economic growth, energy and the environment, has been tapped for the position. U.S. companies must reply to complaints within 45 days, and alternative dispute resolution will be offered free of charge. The U.S. Department of Commerce and the Federal Trade Commission will police the process. Firms must self-certify under the requirements and alter their privacy policies to reflect as much. The European Commission and Department of Commerce will jointly review the framework on an annual basis. Privacy Advocates Oppose Guidelines EU Commissioner Vera Jourova applauded the U.S. in a statement for handing over “binding assurances” that access to European citizens’ data will be “subject to clear limitations, safeguards and oversight mechanisms.” The framework is still pending approval by the Article 29 Working Party, through which the data protection authorities collaborate, and preparations by the U.S. to put the guidelines in place. Schrems, and other privacy advocates, called the framework flimsy. “They tried to put 10 layers of lipstick on a pig, but I doubt the court and the (data protection authorities) now suddenly want to cuddle with it,” he said in a statement Monday. Privacy is considered a basic human right in Europe, where the “right to be forgotten” has been codified. U.S. surveillance, in six circumstances, violates these rights, Schrems argued. Sophia in ’t Veld , vice chairwoman of the group Alliance of Liberals and Democrats for Europe, questioned Novelli’s reported appointment to the ombudsman role, asserting that the ombudsman is meant to be independent of the U.S. government. The “‘ombudsman,’ incidentally, will be (an) official of U.S. government. How does that qualify as ‘independent’ scrutiny?” In ‘t Veld tweeted early Monday. She also doubted whether “written assurances, ombudsman and patchy judicial redress rights” would meet the standards set by Europe’s Court of Justice when it invalidated the Safe Harbor accord in October.

Google Seen Slashing Cloud Pricing Vs. Amazon, Microsoft

The next round of price cutting in public cloud computing services could come from Alphabet ’s ( GOOGL ) Google, just as Amazon.com and Microsoft show some restraint, says a Goldman Sachs research report. Amazon Web Services (AWS), part of  Amazon.com ( AMZN ) , is the biggest provider of infrastructure as a service (IaaS), where customers rent computer servers and data storage systems via the Internet. Microsoft ( MSFT ) and Alphabet’s Google are the next biggest. The new boss of Google’s cloud business, Diane Greene, will make her debut at that unit’s user conference March 23 to 24, notes the Goldman Sachs report. Greene, a Google board member since January 2012, founded virtualization leader VMware ( VMW ), which she led as CEO until she was forced out in 2008. In November, Google acquired Greene’s startup, Bebop, for $380 million. While AWS has been the biggest IaaS price-cutter of the last decade, Google Cloud Platform (GCP) has been aggressive since moving into the market. Google slashed prices in March 2014, October 2014 and May-June 2015, Goldman analyst Heather Bellini said in the report. “Another 20% to 30% across-the-board price cut from Google in 2016 would not be surprising,” wrote Bellini. “This could be announced as early as their GCP Next conference in San Francisco on March 23-24. Similar to behavior in 2015, we do not expect Amazon and Microsoft to follow suit.” Goldman Sachs says that the top three service providers are gaining share as Verizon Communications ( VZ ), Hewlett Packard Enterprise ( HPE ) and others exit the public IaaS market and focus on private clouds. Goldman Sachs estimates that AWS’ revenue will hit $12.5 billion in 2016, up from $7.88 billion last year. “If AWS surpasses $10 billion in 10 years, it would be the fastest-growing software business,” surpassing Microsoft, Oracle ( ORCL ), and SAP ( SAP ),” Bellini wrote.

Alarm.com Q4 Earnings Beat; Connects With Apple TV, Amazon Echo

Home security and smart-home technology provider Alarm.com ( ALRM ) soared Friday to a record high after raising its guidance and reporting fourth-quarter earnings late Thursday that topped expectations. The company is a cloud-based provider of connected-home technology. Its software-as-a-service platform enables homeowners and businesses to control a broad array of connected devices through a single user interface. Alarm.com reported Q4 revenue of $56.9 million, up 25% year over year and topping the consensus estimate of $44.1 million, as polled by Thomson Reuters. It reported earnings per share minus items of 14 cents, smashing estimates of just a penny profit. During the quarter, Alarm.com introduced an app for Apple ( AAPL ) TV. The app lets users watch live feeds from video cameras around their property in real time, using the Apple TV operating system and remote control. The company also announced voice control for lighting and smart thermostats that can be managed through the Amazon ( AMZN ) Echo device. With Amazon Echo and the Amazon cloud-based voice service Alexa, spoken commands — such as “turn on the living room lights” — trigger connected devices in the home. Alarm.com stock was up 13%, near 20, in late-afternoon trading in the stock market today . It peaked earlier in the session at 22.67. Alarm.com raised $98 million with its June 25 initial public offering , pricing 7 million shares at 14, the midpoint of its range. For 2016, Alarm.com expects revenue of $236 million to $239.5 million, well above the consensus of $232 million. Credit Suisse analyst Michael Nemeroff raised his price target on Alarm.com stock to 25 from 22, and maintained a buy rating. Alarm.com said that it expanded its base of dealers to 6,100, up from about 5,100 one year ago. It ended the year with 2.6 million subscribers, up 200,000 from eight months earlier.