The Briefing by Martin Peers, Jessica Lessin and the team at The Information

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The Briefing

By Martin Peers, Jessica Lessin and the team at The Information

Get smarter about the day’s news in tech, media and finance by following Silicon Valley’s most-read executive newsletter.

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Recent Editions

Art by Matt Vascellaro.

Q&A

Has Social Commerce Found Its Time?

By Martin Peers · May 20, 2015 7:00am PDT

In the late 1990s, Paul Allen tried to take on Amazon.com with Mercata, an online venture in which consumers could get discounts on goods by buying in bulk. The company lasted only a couple of years before closing its doors. Since then, the idea of collaborative buying groups has undergone a revival, particularly in China. And now Rick Braddock,... In the late 1990s, Paul Allen tried to take on Amazon.com with Mercata, an online venture in...

The Information’s Startups To Watch

By The Information Staff · May 19, 2015 7:01am PDT · 1 comment

A startup can go from an unknown to the talk of TechCrunch in a blink of an eye. So, to help you get ahead of the curve, The Information pulled together a list of startups our sources are buzzing about. The criteria: the company is still a little under the radar but will be making headlines in the next six to twelve months—whether for deal... A startup can go from an unknown to the talk of TechCrunch in a blink of an eye. So, to help you...

Data via company filings.

One Thing Salesforce Shares With Oracle

By Steve Nellis and Peter Schulz · May 18, 2015 5:33pm PDT

Merger rumors aside, the big question for Salesforce.com is how it will navigate the shift from focusing on fast revenue growth to generating solid profits. But at least one metric—revenue per employee—suggests that Marc Benioff’s company has been managed with a good deal of profit potential. The Information calculated revenue per employee from... Merger rumors aside, the big question for Salesforce.com is how it will navigate the shift from...

Vessel CEO Jason Kilar speaks at an AWS conference. Photo by Stephen Nellis.

In Cloud Pricing Wars, AWS Fires Back Behind the Scenes

By Steve Nellis · May 18, 2015 10:21am PDT

Vessel CEO Jason Kilar speaks at an AWS conference. Photo by Stephen Nellis.

In Cloud Pricing Wars, AWS Fires Back Behind the Scenes

By Steve Nellis · May 18, 2015 10:21am PDT

When a video ad tech startup was considering ditching Amazon’s cloud computing service for a cheaper competitor, something interesting happened: Amazon put an account representative on the case right away and came up with with a way to lower the startup’s bill, persuading it to stay. The quick footwork by Amazon Web Services, or AWS, to hang on... When a video ad tech startup was considering ditching Amazon’s cloud computing service for a...

Facebook executive Ilya Sukhar. Photo by Bloomberg

With Messenger Apps Sluggish, Facebook Eyeing Games

By Tom Dotan · May 18, 2015 7:01am PDT

The first suite of apps that Facebook announced for Messenger were all for lightweight communication: sending people emojis, sound clips, gifs and the like. Now, almost two months into the launch of the Messenger platform, the company is ramping up its interest in games, regarded as stickier and higher revenue apps more likely to draw interest... The first suite of apps that Facebook announced for Messenger were all for lightweight...

Greg Lemond, at left, with John Foley and Jessica Lessin. Photo by Steve Nellis

The Information Events

Tech’s Role In Improving Public Health Still Unproven

By Reed Albergotti · May 15, 2015 1:31pm PDT · 1 comment

There are countless fitness and health tracking devices on the market nowadays but whether any of them can improve public health in the U.S. was the subject of a debate at an event on Thursday sponsored by The Information and Product Hunt. The discussion, “2050: Future of Fitness,” was led by John Foley, co-founder of spin class company Peloton,... There are countless fitness and health tracking devices on the market nowadays but whether any of...

What Tech Investors (Don’t) Know

By Jessica E. Lessin · May 15, 2015 7:13am PDT

Another week, another round of “bubble” prognostications. This wave was triggered by a little deja vu—AOL being absorbed into a big company, again. The over-covered, overplayed deal caused some to call another top. “I’m calling it now: every time aol gets bought it’s the peak of the bubble,” Kara Swisher Tweeted. I’m in a different camp. Despite... Another week, another round of “bubble” prognostications. This wave was triggered by a little...

Art by Matt Vascellaro.

By Matt Vascellaro · May 14, 2015 10:16am PDT

Art by Matt Vascellaro.

By Matt Vascellaro · May 14, 2015 10:16am PDT

Data via Company Filings; Graphic by Peter Schulz

Tim Armstrong’s Magic Trick

By Martin Peers · May 14, 2015 7:00am PDT · 2 comments

AOL CEO Tim Armstrong developed a reputation as a bit of a klutz over the past five years, caught up in a seemingly never ending soap opera of foot-in-mouth public comments, a revolving door of executives and a corporate strategy that lurched from one thing to another. In the end, though, whether by dumb luck or prescient thinking, he appears to... AOL CEO Tim Armstrong developed a reputation as a bit of a klutz over the past five years, caught...

Walmart CEO Doug McMillon. Photo by Bloomberg.

Wal-Mart Preps Rival to Amazon Prime

By Amir Efrati · May 13, 2015 10:20am PDT · 3 comments

Wal-Mart Stores is preparing to launch a subscription fast-shipping service similar to Amazon Prime to boost its online business and take on Amazon.com, according to people involved with or briefed about the product. Codenamed “Tahoe,” the service follows a painful multi-year software overhaul for the Wal-Mart’s e-commerce business and recent... Wal-Mart Stores is preparing to launch a subscription fast-shipping service similar to Amazon...

Art by Matt Vascellaro.

Q&A

China’s Unicorns Are Coming

By Amir Efrati · May 13, 2015 7:01am PDT

Tech firms in China aren’t ready to reinvent existing industries on their own, but they’re closing the gap with the U.S., thanks to a stronger work ethic and a greater desire for success. That’s the view of Kai-Fu Lee, a Taiwan native and former head of China operations for Microsoft Research and Google. Few people have straddled the tech worlds... Tech firms in China aren’t ready to reinvent existing industries on their own, but they’re...

House of Cards star Kevin Spacey. Photo by Bloomberg.

Despite Hype, Originals Are Still Risky for Netflix and Amazon

By Martin Peers and Tom Dotan · May 12, 2015 10:00am PDT · 8 comments

House of Cards star Kevin Spacey. Photo by Bloomberg.

Despite Hype, Originals Are Still Risky for Netflix and Amazon

By Martin Peers and Tom Dotan · May 12, 2015 10:00am PDT · 8 comments

When CBS CEO Les Moonves took a jab at original shows being made by services like Netflix last week, saying “You need a great explorer like Marco Polo to find the actual audiences” for such shows, it was easy to assume the comment was grounded in some jealousy about the attention the shows are getting. Particularly as he highlighted how well CBS... When CBS CEO Les Moonves took a jab at original shows being made by services like Netflix last...

Data via Mattermark and DataFox

Job Openings Can Predict Money Raisings

By Reed Albergotti and Peter Schulz · May 12, 2015 7:00am PDT

A spurt in job openings can be a sign a company will shortly be raising money, new data shows. The Information sifted through job-opening estimates on dozens of companies collated by research firm Mattermark. Matching that with fund-raising data compiled by DataFox showed a clear pattern where companies started looking to increase their staff... A spurt in job openings can be a sign a company will shortly be raising money, new data shows. ...

Microsoft CEO Satya Nadella. Photo by Bloomberg.

For Microsoft Office, it’s Uphill All the Way to the Cloud

By Steve Nellis · May 11, 2015 10:00am PDT

Microsoft is hoping to do something that, to date, Oracle, SAP and IBM have each failed to do: transition its customer base to cloud-based subscription services without sacrificing profits. Just how tough that challenge is for the software giant is increasingly clear. The company has set itself the goal of boosting its “commercial cloud” annual... Microsoft is hoping to do something that, to date, Oracle, SAP and IBM have each failed to do:...

Art by Sam Lessin.

Modest Proposals

The End of the Bazaar

By Sam Lessin · May 11, 2015 7:00am PDT · 7 comments

The first 20 years of the Internet could be described as a race to build the infrastructure to support a global heterogeneous bazaar—a single “place” where everything was for sale, from entertainment to services to physical goods. But just as such bazaars have largely disappeared from the modern world, I strongly believe that we are currently... The first 20 years of the Internet could be described as a race to build the infrastructure to...

How Snapchat is Killing Social Media

By Jessica E. Lessin · May 8, 2015 11:21am PDT · 2 comments

How Snapchat is Killing Social Media

By Jessica E. Lessin · May 8, 2015 11:21am PDT · 2 comments

Is it me, or is “social media” starting to feel different? While browsing Twitter, Facebook, Instagram and Snapchat these days, I still surf through plenty of content from my friends and famous people I choose to follow. But I’m also getting hit more and more with posts from people I have no connection with, curated by the services themselves.... Is it me, or is “social media” starting to feel different? While browsing Twitter, Facebook,...

Google CEO Larry Page. Photo by Bloomberg.

On Search Ads, Google Sounding More Like Facebook

By Amir Efrati · May 8, 2015 7:01am PDT · 1 comment

Google’s announcement of new search-advertising tools earlier this week must have put a smile on the faces of executives at Facebook. Google’s moves bolstered Facebook’s campaign to lessen the value advertisers place on search ads. At the same time though, Google took steps to limit the fallout by highlighting the usefulness of “display” and... Google’s announcement of new search-advertising tools earlier this week must have put a smile on...

Apple CEO Tim Cook. Photo by Bloomberg.

Apple’s Cash Could Be Better Spent on Research

By Martin Peers · May 7, 2015 7:00am PDT

Many investors are surely applauding Apple CEO Tim Cook’s decision to both institute and then aggressively expand big stock buyback and dividend programs to return cash to shareholders. But what is more creditable is Mr. Cook’s more generous approach to research and development. In the past two years, Apple has sharply boosted its spending on... Many investors are surely applauding Apple CEO Tim Cook’s decision to both institute and then...

The Information Recommends

Most Valuable Tech Events (Updated)

By The Information Staff · May 6, 2015 3:56pm PDT · 5 comments

Tech conferences have become a little overwhelming—in number and in size. As conference season arrives, we wanted to update our list of recommended tech events—this time with a few notes from insiders to help you make the most of your time and money. Even if you don’t plan to attend yourself, the tips provide a peek into what really happens at... Tech conferences have become a little overwhelming—in number and in size. As conference season...

Art by Matt Vascellaro.

Moving Up the Labor Value Chain

By Steve Nellis · May 6, 2015 7:00am PDT

Art by Matt Vascellaro.

Q&A

Moving Up the Labor Value Chain

By Steve Nellis · May 6, 2015 7:00am PDT

When Vishal Sikka last summer became CEO of Bangalore, India-based Infosys, what he found was “extremely depressing.” Infosys, which provides outsourced IT consulting and custom software, has 182,000 employees and $8.2 billion in revenue and is basically India, Inc. But Infosys is facing a big challenge: Cloud-based software and easy-to-use... When Vishal Sikka last summer became CEO of Bangalore, India-based Infosys, what he found was “...