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

Jay Parikh, vice president of engineering at Facebook. Photo by Steve Nellis.

Why Cisco’s Biggest Threat May Be Facebook

By Steve Nellis · Mar 11, 2015 7:01am PDT

Hewlett-Packard and Dell are poised to open a new front in their battle with Cisco Systems over networking gear, thanks to the rise of open-source hardware. And H-P and Dell will likely field some powerful weapons from an unlikely source: Facebook. On Tuesday, Facebook announced it would make available to an open-source group its internal design... Hewlett-Packard and Dell are poised to open a new front in their battle with Cisco Systems over...

Apple CEO Tim Cook on Monday. Photo by Bloomberg.

There Are No More Secrets

By Amir Efrati · Mar 10, 2015 10:01am PDT · 3 comments

There are very few big secrets in Silicon Valley. The major software platform companies of today—Google, Apple, Facebook and Amazon.com—partner and compete with each other in various configurations. When they expand into new businesses, they do so with the same partners. As a result, people who work for one of the companies increasingly know... There are very few big secrets in Silicon Valley. The major software platform companies of today...

Snapchat’s Tough Road To Becoming a Music Service

By Tom Dotan · Mar 10, 2015 7:01am PDT

The music labels have had a frustrating relationship with social media over the years. The most-followed accounts on Twitter or Facebook belong to musicians such as Katy Perry and Justin Timberlake, but the music industry has never managed to turn that reach into the meaningful revenue it so desperately needs. But music companies live in hope.... The music labels have had a frustrating relationship with social media over the years. The...

Tech’s Advertising Efficiency Gap

By Martin Peers · Mar 9, 2015 10:00am PDT

Tech’s Advertising Efficiency Gap

By Martin Peers · Mar 9, 2015 10:00am PDT

If there’s one industry outside of tech that should be happy about Apple’s release of its smartwatch, it’s Madison Avenue. That’s because the new product launch will force Apple to spend a little more money on marketing. As the accompanying chart shows, Apple spent just 0.67 percent of its revenues on advertising in its fiscal 2014 year, the... If there’s one industry outside of tech that should be happy about Apple’s release of its...

Art by Sam Lessin.

Modest Proposals

Why Tech Comp is Broken and Ideas To Fix It

By Sam Lessin · Mar 9, 2015 7:00am PDT · 9 comments

A handful of trends are causing the historical Silicon Valley model of compensation to fail employers and employees. I am not entirely sure how to fix it. But I believe that at least part of the solution will be a move away from equity compensation and toward a heavier reliance on cash bonuses. As is widely understood, traditional startups... A handful of trends are causing the historical Silicon Valley model of compensation to fail...

The Apple Watch Upgrade Issue

By Jessica E. Lessin · Mar 6, 2015 10:54am PST

After Monday’s expected Apple Watch event, plenty of people will be talking about whether to buy the highly anticipated gadget now or wait for future models. One important consideration often overlooked in such discussions: how quickly shoppers will tire of the one they buy. Imagine the iPhone you used four years ago. Then imagine using it... After Monday’s expected Apple Watch event, plenty of people will be talking about whether to buy...

Apple's coming smartwatch. Photo by Bloomberg.

Apple’s Smartwatch Faces Hurdles With Health Sensors

By Steve Nellis · Mar 6, 2015 7:00am PST

When Apple first unveiled its smartwatch last fall, it hinted that the device could help track people’s health with special built-in sensors. But a variety of technical challenges will likely limit what health measurements can be offered on the watch, to be launched formally on Monday. The biggest hurdle may be that the wrist isn’t the best... When Apple first unveiled its smartwatch last fall, it hinted that the device could help track...

Google's No. 2 executive, Sundar Pichai, in Barcelona Monday. Photo by Bloomberg.

Apple’s Party and the Things I Learned at Mobile World Congress

By Amir Efrati · Mar 5, 2015 10:01am PST

Google's No. 2 executive, Sundar Pichai, in Barcelona Monday. Photo by Bloomberg.

Apple’s Party and the Things I Learned at Mobile World Congress

By Amir Efrati · Mar 5, 2015 10:01am PST

BARCELONA—Mobile World Congress makes headlines for announcements by companies like Google, Samsung Electronics and others, but the real action is always behind the scenes. Wireless carriers from developing countries were busy finalizing deals for a new revenue source—extracting money from developers who are seeking to reach the carriers’... BARCELONA—Mobile World Congress makes headlines for announcements by companies like Google,...

Facebook CEO Mark Zuckerberg. Photo by Bloomberg.

Twitter vs. Facebook: Wall Street Is Paying More for Less

By Martin Peers · Mar 5, 2015 7:01am PST · 2 comments

Here’s a quick quiz. Which social media network should be valued more highly: a) the one that is used by almost everyone daily or b) the one that a minority of people, other than journalists, use? If you answered A, you may be in a position to make some money trading stocks. I’m talking about the current stunning valuation gap between Facebook... Here’s a quick quiz. Which social media network should be valued more highly: a) the one that is...

Art by Matt Vascellaro.

Q&A

What’s the Big Deal About Wi-Fi?

By Amir Efrati · Mar 4, 2015 10:01am PST · 1 comment

Wi-Fi is a hot topic these days, which is somewhat ironic. For years, we’ve been trumpeting how cellular can keep us connected everywhere. Now, companies ranging from Google to Comcast want to build wireless services that rely partially on technologies that are tethered to one spot. This could be a boon for companies like Cisco Systems or... Wi-Fi is a hot topic these days, which is somewhat ironic. For years, we’ve been trumpeting how...

MailOnline North America CEO Jon Steinberg. Photo by Bloomberg.

Technical Glitches Cost Media Firms in Lost Video Ads

By Tom Dotan · Mar 4, 2015 7:01am PST

For many media firms, the allure of video content is the promise of high revenue video ads. But as the amount of video expands, websites are running up against a costly problem: Technical glitches are causing videos to run without the ads meant to accompany them. The result can be the loss of significant ad revenue, several media executives... For many media firms, the allure of video content is the promise of high revenue video ads. But...

Graphic by Steve Nellis.

The Race to $500 Million in Revenue

By Steve Nellis · Mar 3, 2015 10:00am PST

Graphic by Steve Nellis.

The Race to $500 Million in Revenue

By Steve Nellis · Mar 3, 2015 10:00am PST

Half a billion dollars in revenue can be a tipping point for startups. Many companies that hit it quickly march on to top $1 billion and beyond just a few years later. The Information rounded up some prominent technology firms from the U.S. and China to see just how quickly they made it to $500 million in net revenue. The numbers show how much... Half a billion dollars in revenue can be a tipping point for startups. Many companies that hit it...

Cloudera co-founder Mike Olson. Photo by Bloomberg.

Enterprise Cos. Cry Foul Over ‘Open’ Data Alliance

By Steve Nellis · Mar 3, 2015 7:01am PST · 3 comments

When three big enterprise software companies announced last month they had agreed to a set of common tools for analyzing big data, it may have seemed like just another boring partnership in the world of business software. But the agreement between Pivotal, Hortonworks and IBM was much more. The creation of the so-called Open Data Platform set... When three big enterprise software companies announced last month they had agreed to a set of...

Viacom CEO Philippe Dauman. Photo by Bloomberg.

Why Kids’ Streaming Video Services are Worth Watching

By Martin Peers · Mar 2, 2015 10:01am PST

The future of television may be still be evolving, but in the children’s category, it’s already here. As kids’ cable channels bleed viewers faster and faster, a much bigger group of free and paid over-the-top online services are emerging as alternatives. How these services fare is likely to be closely watched by the rest of the TV industry,... The future of television may be still be evolving, but in the children’s category, it’s already...

Art by Tom Dotan. Photos by Bloomberg.

The Most and Least Disruptive Streaming TV Services

By Martin Peers and Tom Dotan · Mar 2, 2015 7:01am PST

Disruption can have good and bad consequences. In entertainment, the rise of online video is eroding pay television’s hold on the viewer. But over-the-top channels that don’t require a traditional cable subscription are exploding, creating opportunities for new and old media businesses. Historically, most of these over-the-top services were the... Disruption can have good and bad consequences. In entertainment, the rise of online video is...

The Fight Tech Companies Must Win

By Jessica E. Lessin · Feb 27, 2015 10:15am PST · 1 comment

The Fight Tech Companies Must Win

By Jessica E. Lessin · Feb 27, 2015 10:15am PST · 1 comment

Every week I become more convinced that the next generation of big tech winners and losers will be determined by one question: Can they localize? Of course, modifying a product for different markets has always been very important to big tech companies. But I think it is becoming the key competitive variable for a few reasons. Every week I become more convinced that the next generation of big tech winners and losers will...

Verizon CEO Lowell McAdam. Photo by Bloomberg.

Wireless Carriers’ Next Battles Against Silicon Valley

By Amir Efrati · Feb 27, 2015 7:01am PST · 4 comments

Silicon Valley has repeatedly defeated wireless carriers in the high-stakes war over making money from mobile apps. That was highlighted this week by the death of a U.S. carrier-owned smartphone payments app, Softcard, which shut down after selling its tech to Google. But the carriers aren’t giving up. Facing slowing revenue growth, carriers... Silicon Valley has repeatedly defeated wireless carriers in the high-stakes war over making money...

Chart by Tom Dotan; Data via company earnings, ComScore, eMarketer

Google Still Lapping the Field in Mobile Revenue Per User

By Tom Dotan · Feb 26, 2015 10:13am PST

Google said Thursday that it is going to let app developers pay to promote their apps in its app store, a move aimed to wring more revenue from mobile devices. But right now, when it comes to making money from mobile users, it’s still far outpacing its rivals on that front. That’s the clear picture that emerges when you compare how much... Google said Thursday that it is going to let app developers pay to promote their apps in its app...

Dish Chairman Charlie Ergen. Photo by Bloomberg.

Waiting for the Next Grenade in the Wireless Wars

By Martin Peers · Feb 26, 2015 7:00am PST

The federal government’s just-concluded auction of wireless spectrum, fetching much higher prices than anticipated, gave some indications about how the telecommunications industry will evolve in coming years. But big questions remain over which companies will end up challenging the incumbents as well as which technologies will win out. It’s... The federal government’s just-concluded auction of wireless spectrum, fetching much higher prices...

SAP Chief Technology Officer Quentin Clark. Art by Matt Vascellaro.

SAP’s Survival Strategy: Become a Database Company

By Steve Nellis · Feb 25, 2015 10:00am PST · 2 comments

SAP Chief Technology Officer Quentin Clark. Art by Matt Vascellaro.

Q&A

SAP’s Survival Strategy: Become a Database Company

By Steve Nellis · Feb 25, 2015 10:00am PST · 2 comments

If business software firms’ prospects in a cloud-based world were described in the language of a high school yearbook, SAP would probably be voted “least likely to survive.” Critics of the $21.2-billion-a-year German company say it missed the big shift, allowing startups like Workday and Salesforce.com to grab billions of dollars in market... If business software firms’ prospects in a cloud-based world were described in the language of a...