action on immigration. a coalition of 26 saves are given time to pursue a lawsuit. an expansion of the program for taking children from deportation due to take effect tomorrow. the real estate website zillow shares are rising after surprise earnings were reported on friday. the acquisition will be able to close as early as today now that the fcc has cleared the transaction. revenue the fourth quarter is up 58%. 76% gains in the premier asian -- agent business. intercontinental hotels group's up 10% thanks to strong growth in the u.s. shares of holiday inn increased dividends. here is the ceo speaking on the impact of the home sharing website like airbnb. >> they should be managed properly and subject to the same rules we are. frankly, if that business grows place. size in terms of revenues and noxious rooms for overseas significantly smaller from a revenue perspective, if it does grow and scott -- and consumers wanted, it is something we should look what -- look at running behind it. right now, it is certainly at the margin. cory: intercontinental recently agreed to buy crossing the united states under the crown plaza intercontinental group. now to the league, detroit's biggest threat may no longer be -- maybe tech companies. apple is the latest tech giant to signal in autos. pursuing 100 people to work on the early stages of an electric car. some of those workers work on what is being called project titan. apple, google, tesla, and google are all involved there it who will win the race for the future of transportation and what role do the current automakers lay as they enroll innovation centers. m.i.t. professor john leonard. let me start with you. is there a different discussion about what innovation is for cars away from the auto industry than in the auto industry? >> i think so. if you look at the exciting features that emerged this weekend, sensors alleged to be an applecart, you see technology with very precise localization and mapping. some are what's involved in a google car. it is a different set of techniques and skills than the traditional detroit automaking industry. cory: i saw your byline and i thought yes, tim came to detroit and you come here to cover apple. what are similarities between the companies? >> apple is a global company with a lot of cash. it is usually about a billion dollars to create a new car. generally speaking. it is an expensive and time-consuming process. on the one hand, apple has got a lot of money in the bank. $178 billion. they have got global operations and are used to doing some i chain management around the world and industrial design and dealing with the retail network all over the world. in some ways, they have a lot in place that the global automaker would have. that said designing and building the cars is very complicated. it is something that trips up even experienced automakers with safety and marketing and hitting what the consumer wants seven years down the road. it is a long time for developing a car. >> they spend boatloads of money in r&d, which is on top of container ships full of money. the history of knowledge they have built up, that is the question. is there an accumulated amount of knowledge or a bureaucracy that is about the way they will do things as a owes to a blank newspaper and start all over again. >> engineers find frustration when they deal of automakers. they feel they do not move quick enough. talk to guys in detroit and they say there is a reason we are so slow. some of it has to do with safety and regulations and dealing with challenges of putting a product on the road were people's lives will be in jeopardy if something goes wrong. >> more on that, it is it -- isn't about the way the cars are made? wrestling with union contracts and existing factories and relationships with dealers? they have got to figure out what to put in their pipeline, as opposed to what to put on the road. >> exactly. they have a lot of legacy issues. tesla, you can say what you will about the business model that they have created an interest in the auto space new players who look at the challenges look at the new entrants, they are able to do what they can do in a short amount of time and what can other folks do? that is where the excitement comes from. >> when you look at the excitement, what is it technologically you feel like it's right there ready to be improved upon the most? is it the battery, the duration of the battery, the self driving aspects, the road awareness question mark >> i think it is safety. a number of traffic accidents over 30,000 per year in the u.s. alone. it is a tragedy. with artificial intelligence coming online, we should have the capability to radically reduce accidents. that is the thing that is really exciting for what can happen now. >> a great thing to talk about but apple and google and other companies in silicon valley are looking at the idea of what the user is doing at that time while driving. they want to create a business where your digital life is at the center of their devices. right now, when you're driving a car you're not able to fully engage in the digital lifestyle. if you are pushing a product that allows folks while in their car to the in digital space through autonomous jiving or other functions, that opens up a whole new marketplace for commerce. >> a horrible irony that the companies responsible for tech driving -- text driving accidents, they are now looking at cars. i off -- i also wonder if there is a different sort of pace in innovation, when you're safely aside from both. you have seen engineering centers here in silicon valley. is there a different pace in silicon valley? i think so. it is a very rapid turnaround. interestingly, google building its small prototype cars are partnering with companies in michigan. i think they said they want to work with the detroit ecosystem. there is an acknowledgment it could be win-win. parts that are more traditional eastern u.s. industries would be good at. it can all come together. >> it is an interesting time. thank you very much. drone delivery, new drum postals and what they could mean for companies like amazon and google, thinking about what goes up in the sky next. ♪ cory: i am cory johnson and this is lumbered west. world news headlines. grace's government request for extension of its loan agreement for six more months of warning to a person familiar with the matter. the step could ease the standoff over greek financing. the positive outflows from greek banks are accelerating. talks to extend that bailout bogged down. the u.s. subsidiary of swiss food giant nestlé will stop putting artificial ingredients into the candy. the chain will be fully implemented by the end of the year. a set of artificial junk, nestlé will use natural ingredients for its products, including butterfinger crunch bars and baby ruth. a major shift going on in china's smartphone market. the country's top smartphone vendor edging up samsung. the last quarter, news gets worse. the former number one has fallen behind apple. skies will get a lot more crowded over the weekend. incorporating commercial drones with civilian airspace. peter cook joins us now. peter, the rules are not as stringent as some people might have thought. >> that is a lighter touch is what the faa is trying to labor -- label these rules. you know how widely anticipated the rules have been for months. for years, people have been waiting for the faa to outline exactly how they would allow drones in commercial space. the proposed rules that came out at this point, some may suggest a lighter touch, but there are critics as well who say they are to drip owning and limiting to use drones. how that is like amazon and google, for example. i will walk you through main specs here, the drones in question must -- must weigh less than 55 pounds. they must fly in the daylight only. below 500 feet and 100 miles an hour. operators must these veneers are older but they will not -- 17 years or older. they must submit to the tsa for vetting as well. these are rules and guidelines for a lot of people that are not as tough as asked and did, but it is a long process from here still. >> really interesting stuff. around here, there are so many companies working on drones had they been waiting for these roles. skies are open. thank you very much. what do the new rules mean? all the startups are developing drones. amazon and google. joining us now is the executive director of the small uav coalition, a lobbying group working for the likes of amazon, google x, and also a senior policy advisor. what is in these rules that is good and what is that? >> the fact we have rules is in of itself great. it gives us a platform upon which to build. i would say there are problems to the extent that the rules will prohibit operations commercial operations of drones when there are personnel on the ground not associated with the project, which essentially will shift all commercial usage. it is a real problem. there are also some suggestions that there will not be an ability to operate outside the linux eight, which means it has to be a visual i hear the actual person has to be able to see -- so the very notion of the amazon drone that brin -- that brings a box and drops at your front door and hopefully does not clip your poodle, that is out with this proposal. >> yes. exactly. what most people believe and i think is true is that automation is going to be the future of the industry for delivery for precision agriculture for pipeline inspections, for disaster management, search and rescue, a whole host of purchases they can be used for. we have some work to do now. one thing i will say is that the faa was great in not touching the ability of recreational users to enjoy for aerial photography and digital photography. that is wonderful. >> yes, but insights came out with a report today, $190 invested in drones last year. no one is doing that because they want another frisbee. the whole idea is, we can find a cheaper and safer way to inspect pipelines, which have to be inspected to check for leaks. so much more awesome because the cost would be so much lower. is there a sense they do not want that happening? >> no, quite the contrary. the faa in the evaluation of the proposed rule said they would save lives, this is efficient, and that, they said uav's can be used for cell tower and pipeline inspection, things that are producing fatalities now which can be stopped with the utilization of technology. a lot of promise here. the only thing we have to keep in mind is this is a proposed rule so it will take a series of months. i am hopeful we can get it done as quickly as possible, but i do not think it will be this year. other countries are already operating commercially. so we are still far behind other nations. >> in terms of privacy, what do we want from rules about drones? amazon and google have notions of privacy different between them let alone between what other people might want. >> privacy has a fair amount of portions and we all recognize that. the administration and the president put on executive order we thought was very thoughtful on the issue of privacy. it essentially says you cannot do something outside the expectation of the consumer. we are experiencing this across technology, which is aerial vehicles are not unique to the privacy issue. mobile phones, cameras, helicopters, camera on a stick these things all have the potential to invade our privacy. the reality is the industry is ready to work with the government and work with the and cia on developing clear standards on privacy. cory: thank you very much. google, not just drones, but how about balloons? the internet to billions of people that do not have the internet. that is next. ♪ cory: could you really check tumblr while going through new guinea? google is trying to change it i launching balloons that could give online access the most -- to the remote corners of the earth. inside look at google's project ballooned. >> the science of learning is one of the world's oldest technologies. imagine a fleet yvonne man looms, solar powered and equipped with special antennas so they can talk to each other and earth. all to deliver an affordable internet access to the remote corners of the world. >> 4 billion people on earth do not have access to the internet era we think we should be -- internet. we think we should be part of the solution. >> it is not a pie-in-the-sky idea. it is happening now. question many ways the balloon is just like a cell phone tower on the ground except it is 65 feet up. >> how many balloons do you have up in the air right now? >> about three dozen. >> the plan is to have hundreds of them soaring through the stratosphere, connecting earthlings down below. >> the first 60 balloons we launched, they all burst. the data rate was relatively low. >> fast-forward and some balloons have been lost for the and 170 days. there is something -- nothing obviously different about them from the rest, but they could be the key for stronger, faster internet. >> our speed increased dramatically. 10 megabits per second of internet, not to stream videos down from a balloon that is 60,000 feet in the sky to the phone you have in your pocket. >> balloons 565,000 feet, twice the size of an airplane controlled by the command center at bloomberg headquarters. >> what are we looking at? >> real-time data showing what the winds are doing around the world. >> googlers charted balloon pass, tracking wind, and communicating with air traffic controllers as they crisscross local airspace. >> how are the responses to countries for you flying to the airspace. >> brazil, india, russia even who asked us to come and do pilot tests in the country. we are also talking to china. china is interested in bringing the internet to people in the rural area. >> is the last mile being worked out still. google is not the only tech giant exploring the sky. google just invested in elon musk's spacex and it's fleet of broadband satellites. drones and lasers and striking partnerships with local mobile carriers to show users a specific set of apps for free. >> anyone trying to help with the goal is great. >> the skeptics, you would be like you can show them google's version of the internet. >> know, we show them every version they can get. >> the question is why? is it charity? >> it is not a charity. getting internet access will be shared between google and telecom. >> he says the key is this internet will cost 1/10 what traditional wireless costs the average user, no matter where they are in the world. >> there are people so remote even this cannot reach them. >> know, we should be able. every country has spectrum. our balloons can reach the tallest mountains in the craziest islands. we can reach all these places. >> emily chang, bloomberg, mountain view, california. >> google is not the only tech giant attempting to bring internet access to the remote corners of the earth. mark zuckerberg is racing to wire the world with drones and lasers. an exclusive look at his latest project at google.org. an amazing technical achievement led to one of the agency's most far-reaching hacks a footing computers across the world. that story is next. you can also watch a streaming in your tablet and phone everywhere. ♪ cory: you are watching bloomberg west. i'm cory johnson. and it's a spyware may be hitting in hard drives around the world. researchers discovered spying software in bedded into hard drives like toshiba western digital and ibm. this would give them the ability to eavesdrop on the majority of the world's is computers. i'm joined by the ceo of cyber security form -- firm "silent." this is fairly amazing stuff. even when he wiped the higher -- the hard drive, it stays there. >> that is exactly it. a matter what you do and what will you use to find it, even if you can find it you could try to wipe it but it will come back because it is in firmware. that is usually planted at the manufacturers. it is not the first time the industry has seen this tool -- this kind of virus or attack. it is simply the complication of this type of attack which gives its merits to talk about. >> ok. it is also widely spread. the manufacturers at western dinner -- western digital or somewhere else. it is right across the industry. every major manufacturer according to this report is affected by the software. >> we do not know the full scope yet, but the indications are that there are real opportunities with hard drive manufacturers to implant this kind of stuff into the firmware. whether or not it was the production or postproduction is a little bit up in the air and i do not think we would know that yet. that needs to be fleshed out quite a bit and investigated areas what we do know is the ability to get onto the systems is really quite trivial. to stay there with assistance is quite trivial. it becomes easy for any adversary whether it be a simple bad eyesight tests criminal to do whatever they want to. >> what kinds of things can and as a pickup with a hacks such as this as opposed to the data hack from the past? >> could be even israeli defense, as well. they have similar targets. in the middle east and asia that the nsa and other organizations are. in terms of attribution, it is difficult to really give smoking gun proof back to people on the keyboard. certainly, highly possible improbable that they are part of this, but we do not know definitively yet. in terms of what they can do don near anything here it they could pretend to be the user of the computer. they could infect it in a way where they could capture screenshots. they can capture your passwords and become you on the internet take your persona. they could affect assets your bank account. you name it. it is up to the creativity of the adversary. >> the adversary, again i say the nsa because it was reported -- the report out of russia listed the countries most affected. it went on to list syria, china yemen algeria, and afghan -- out -- does seem to be particular targets of the u.s.. is there a notion about what kinds of things they maybe after because this is a hardware attack and they are not places where the -- keeping data stored in amazon web services. >> they definitely wanted to surveillance targets. it was not a destructive attack like the sony attack or they wanted to terrorize and destroy. they simply wanted to observe and surveillance understand what they are doing, creating an intelligence channel with the military operations and allow them to stay one or two steps ahead of what they perceive as adversaries, the victims in these cases. the countries, you're absolutely right. they have long been held target as well as israel and neighboring countries that are friendly. it could easily be those two for sure. >> we established how it works. us talk about what this means for business. it is different than software or microsoft saying for customer in germany, host your data with us. the countries that sally's devices? >> a good question. i do not think we have seen this before. we have seen adversaries within these countries back during the bootable part of the computer to put their own stuff on here. but not from the manufacturers themselves. if that is truly what is happening, we have a big problem on our hands area there inside the organization as a bad guy, or in outsider, or they work with the manufacturers to allow the work to be done. either way, it is a big story. >> i have got to think the best position to be in today is a salesman from a french struggling hard drive manufacturer who can walk into a manufacture of computers and say, i am not western digital or toshiba or ibm and i am not samsung. we talked to the ceo last friday of semantic and while he did not say the sales were slowing in europe, he said we have got to do a little bit more. places to restore data that are not in the u.s.. are the manufacturers fundamentally hurt by this and does it go beyond this drive at all? is it u.s. text that -- tech companies selling in asia? >> the tech companies have been for many years ever since the snowden event. it created such suspicion inside a particular europe northern europe, london, things of that nature, that they are sketch called any u.s. country especially u.s. security country -- companies. they are requiring to view source code of your product and you have to prove to them there is nothing backdoor inside the very brains of the product. we will see that for a number of years until this snowden effect really dies down. >> banks and companies are having to expose their software to the very on trusted chinese government but that is the state of the road right now. thank you very much. "bloomberg west" will be right back. ♪ cory: lands of dollars worth of cargo in limbo due to a huge dispute in west coast boards here. it is happening behind me and happening in los angeles and cattle. the labor secretary has flown out here to sell the dispute and get things moving again as shelby holliday reports from one of more than two dozen ports. maybe the most important of the west coast ports. >> this is the breakwater here. those are all ships. ic 25 to 30 here. >> being out on the water really gives you perspective on how much stuff is sitting on the ships that are going virtually nowhere. 140 foot shipping container, one of these behind me, can hold 130,000 pieces of clothing, 16,000 toys 3600 electronics or 15,000 auto parts. when you look at these, they have hundreds of containers loaded on them. >> it will get congested. it is congested now. emily: once an agreement is reached, it is not like all of these ships can rush into the ports and get unloaded. experts tell me it will take months for the shipping traffic out here to return to normal. >> shelby is in long beach still. there is a lot of stuff out there in the water. who is feeling the effects of this? >> basically anyone who trades with asia via cargo ship is doing the impact of this west coast port slowdown. to give you an idea of top courts out here on the water you have got apparel electronics, footwear, so we're seeing ripple effects across the u.s. economy. the retail industry says a west coast port shutdown would cost about $2 billion per day. automakers such as honda announced their cutting u.s. output because they cannot make the cars fast enough. the tech center is being affected because a lot of consumer electronics are shipped in the containers. things like dvd's and sometimes television game consoles. there are also electronic parts. anyone manufacturing electronics is getting hit hard as well. if you look at the picture, 29 point -- ports it accounts for 12.5% of gdp. if you look at the numbers, that gives you a sense of how much of an impact the ports shutdown is. >> it is a -- it is huge. i covered this second 2002 the last time they got shut out of the ports. it is fundamentally a technology story. technology is coming and we will get rid of this throwing things on the ships, have fewer employees, but promise us we will have another generation or two of a shrinking workforce. the technology battle is still happening there. >> yes, it is really at the heart of the dispute today. behind me, some of these cranes can operate themselves. they are completely robotic. because of the union contract we are playing -- paying one or two meant to operate the cranes at a time. they are still fighting technology in fighting for their own jobs. the introduction of containers and the automation of shipping is really advancing the industry. cory: a deep impact. shelby holliday glad to have you on the ground covering it. thank you. some other world news headlines. indonesia central-bank, the first time in three years. the nation deals with cooling inflation. indonesian economy strengthened last quarter after its weakest year since the global financial crisis. central banks around the world have used monetary policy since the start of 2015. the french president francois hollande is ramming through economic reforms and by emergency action. the bill, including proposals to ees regulation, but critics say it gives praise to businesses including job security. the italian maker of nutella chocolate says it is not for sale despite speculations swirling through the longtime owner their richest man, died last week. giovanni says he strongly denies the rumors the company will be sold with nestlé often mentioned as a suitor. "bottom line" with mark crumpton speaking of things sweet, joining us now. mark: as you know legos are everywhere. as soon as you see them, you know what they are. much more than a toy. a aid -- they aid in child lord -- childhood development. the company almost went bankrupt. the president of lego systems says the company lost its way. why are lego so popular and how do they find their way back to profitability and how do they compete in the digital age? mr. laursen will join me in the next hour. pimm:-- cory: thank you. we will be right back with "bloomberg west." ♪ ♪ cory: i am cory johnson and this is "bloomberg west." siliga and the chart -- silicon the choice for everything from pc chips to cell phone channels. super efficient replacement for that chemical, called gallium nitrate. the transistor is made out of gallium nitrate are said to be smaller and faster than silicon transistors. can this actually change how the industry works? the ceo of power conversion joins me now. what do you call it? >>talk to me about it and why it has not been used before. >> it has been able to grow on top of stoughton. we have followed the manufacturing that use the same facilities and get the same structure. it is not only much more efficient but lower cost to produce than siliga nowadays. >> why? asked the chips are smaller so you get more of them on a wafer. they can carry more juice in a smaller space. the electrons are more efficient . that is why. >> in terms of making this, what are raw components? >> you grow a thin layer of gallium nitrate and you do the layers like you do on any kind of a siliga and ship and bingo. >> you need to have a layer below? >> you use it away the electrical -- the electrical processes have been known for a while. >> they had been but only years ago did somebody figure out how to grow it on top and only a few years ago did we figure out how to make it work like a power transistor very well. >> what was the key of that? but some magic in the material science world. making a device that could stay turned off until you wanted to turn it on was really the key. if a device is turned on all the time until you try to turn it off, think about the short circuit and the minute you turn on your switch, everything goes crazy. figure out how to make it work in the opposite direction. that is something we did. cory: now that the processes are so small and thin, does it make more sense now that intel is making everything and nine nanometers? smaller wafers in terms of thickness let alone in terms of size across the wafer. does it make more sense? you start off with about 1000 times advantage with silicon. and we are backtracked thing -- backtracking. >> they're fundamentally different to incorporate this. >> we run our way side-by-side with a foundry in taiwan. very standard. >> moore's love being a marketing dream, as opposed to an actual scientific process, is this the sort of story we hear every year of some new chemical discovery that allows for them to continue to get cheaper and faster? >> i actually think it is. i think moore's law is a social pact more than anything else. you promised to keep delivering more and more. so since run out of gas there but gallium nitrate is just started. cory: how do we get started? >> eight years ago, the fundamental thing was that we had no money, like a lot of stardust dress on a company in taiwan willing to not only invest to let gallium nitrate products. from there, we were able to get rolling with very little capital. >> one of the things we know is you really need a new fad with the new process quickly. >> better than the silicone products that go through there. >> how big is the market? >> today the direct market is about $12 billion. we are expanding into analog the unjust power. that is a $40 billion market. beyond that, it is digital. there are technical hurdles to overcome. $350 billion. eventually, it will take the whole piece, i think. >> what is the difference between going for power. >> there are very few barriers and we're doing that right now. to digital it requires fundamental development of the semiconductor itself. i put a question on that. >> thank you so much. interesting. it is time for the bwest byte, a number that tells us a whole lot. joining us with more out in the newsroom, what have you got? >> number is 3700 turning out for the blowout, the hot arbiter other internet trinkets released every day. 28-year-old ryan hoover, who over the past year has made himself into an unconventional powerbroker in silicon valley. >> cool for nerds. this helps people figure out what? >> it is kind of a way to find out the latest products introduced. some of them are clever and some are wacky. a lot of the companies that post products on there, some of them can get themselves invested. it is an example of the tech boom going on. >> great stuff. thank you very much can catch more "bloomberg west" right here tomorrow. ♪ >> from bloomberg world headquarters in new york, i am mark crumpton, this is "bottom line." to our viewers here in the united states and those of us joining around the world welcome, we have full coverage of the stocks and stories making headlines on this tuesday. shelby holliday is in long beach , california, covering the dockworkers dispute in los angeles. peter cook outlines the next move from the white house after a texas judge temporarily
crucial fighting continues despite the cease fire. that provides crucial transportation between rebel strongholds. snapchat seeking a new funding round, according to a person with knowledge of the matter who says they want to raise $500 million. at that valuation, the photo disappearing app would be the third highest in the world behind google. a meeting billed to be about advances in health care devices, between apple and mexican authorities. website zillow completed acquisition of trulia. it's now resamed zillow group. they cut 50 jobs as a result of the acquisition. tech companies just 2500 miles away in silicon valley. apple the latest tech giant, building a team of a few hundred people to work on the early stages of an electric car. some of those workers have been poached from car companies to work on what's being called project titan. apple, google tess la and uber all involved, what role will the automakers play as they create innovation centers in silicon valley. joining us now tim hagen and john leonard. is there a different discussion about what innovation is for cars away from the auto industry than in the auto industry? >> i think so. if you look at the exciting pictures that emerged this weekend of a mini van decked out with sensors that allege to be an apple car, you see technology for doing very precise localization and mapping. some of the sort of parts of what's involved in the google car. so it's a different sort of set of techniques and skills than sort of the traditional detroit auto making industry. >> tim higgins i love, i didn't think about this when the story crossed but then i saw your byline york came from detroit where you covered automakers you come here to cover apple. what are the similarities between these companies? >> apple has a lot of cash. auto industry churns through cash quickalism usually about $1 billion for a new car to created. >> $1 billion for a new car, for companies that have been making cars for a hundred years. >> it's an expensive, time-consuming process. apple has billions, they're not short on cash. they're used to doing supply chain management around the world, used to dealing with the retail network all over the world. in some ways they have a lot of things in place that global automaker would have. that said, designing and building cars are complicated, something that trips up even long experienced automakers with regulations, safety, marketing, hitting what the consumer wants seven years down the road. it's a very long lead time for developing a car. >> car companies spend boat loads of money on r&d on top of con tearerships full of money, and the history of knowledge they've built up is there an accumulated bit of knowledge or is it a calcified bureaucracy that thinks about the way they do things instead of thinking of what they would do with a blank piece of pain her >> when you talk to engineers in silicon valley, they feel frustration with automakers. talk to guys in detroit and they say there's a reason we're so slow. some of it is safety and regulations and the challenges of putting a product on the road where people's lives will be in jeopardy if something goes wrong. >> more on that is it about the way that the cars are made? is it because they've -- they're wrestling with union contracts and wrestling with existing factors and wrestling with relationships with dealers, they've got to figure out what to put into their pipeline as opposed to what to put on the road. >> tess la you can say what you will about their business model but they have created maybe an interest in the auto space from new players who have said look at the challenges in the past but look at this new entrant, they're able to do what they can do in a short amount of time. what can other folks do with a lot of money? that's where some of the excitement is coming from. >> when you look at the excitement what is it technologically you feel slike ready to be improved upon the most? is it battery, the duration of the battery, self-driving aspect or road awareness? >> i think it's safety. i think that the number of lives lost to traffic accidents, over 30,000 per year in the u.s. alone, over a million worldwide is a tragedy. i think with a better -- with better sensors and artificial intelligence coming online, we should have the cape to believe the radically reduce accidents. edge that's the thing that's exciting about what can happen now. >> safe city a great thing to talk about but apple, google, and other companies are looking at the idea of what that user is doing with the time then they're driving. these are companies that want to create a business where your digital life is at the center of their devices. when you're driving to the point of safety, you're not able to fully engage in a digital life tile stile. if you're pushing a product that allows people to be in that space throw autonomous driving or other functions, that opens up commerce. >> it's a horrible irony that companies that are responsible for so many accidents due to their devices are now looking at getting into the car business. you've witnessed what goes on in detroit and seen the engineering centers in silicon valley is there a different pace of innovation in silicon valerie? >> i think so. a silicon valley investor wants return in 1 months. google in building its small part for theship -- in building its small cars are partnering with companies in michigan. there are parts that silicon valley will be good at and parts that the sort of more eastern u.s. industries will be good at and it could all come together. >> interesting times. thank you both very much. drone delivery is dealt a new setback. new drone proposals, what it could mean for companies like amazon and google, thinking about what goes up in the sky, next. >> i'm cory johnson this is "bloomberg west," here's a check of our headlines. greece's government requests a -- an extension of its loan agreement for six more months. it's a step that could ease the standoff over greece's financing. the positive outflow is greek banks are celebrating. the u.s. subsidiary of swiss food giant nestle will stop putting artificial ingrowth greed yents in candy. instead, they'll use natural ingredients for 250 products including butterfingers, crunch bars and baby ruth. there's a change in china's market, the top smart phone vendor last year edging out samsung. but in the last quarter, news gets war for samsung. they've fallen behind apple and two other companies. skies getting a lot more crowded. the f.a.a. released guidelines for repeating commercial drones into air space. the rules are not as stringent as some people might have thought they would be. >> that's right. a lighter touch, at least that's what the f.a.a. is trying to -- to label these rules as. you know how widely anticipated these rules have been for months, even years. they've been waiting for the f.a.a. to outline exactly how they'll allow drones in commercial space. to some it may suggest a lighter touch from the f.a.a. but there are also critics that say they're too draconian, limiting the opportunities for commercial entities to use drones. walk you through some of the main specs here, the drones in question must weigh less than 55 pounds operator must maintain line of slight operators must be 17 or older but don't have to have a pilot's license, they have to pass a written test and submit to the t.s.a. for vetting as well. this is, again, rulesing zines -- guidelines, not as tough as they expected for the f.a.a. but still a long process from here. >> really interesting stuff. i can't tell you, around here there are so many companies working on this big idea of drones and they've been waiting for these rules. maybe the roads, or the skies, are open. i'm going to duck. time too tall for this new world. what do the new rules mean? the big guys like amazon and google, joining me now from washington, michael drobek, part of the small drone coalition, also senior policy advisor at akin gump. what's in these rules that are good and what's bad? >> i think the fact that we have rules is in and of itself great. it gives us a platform upon which to build. i would say that there are some problems to the extent that the rules will prohibit operations of -- commercial operations of u.a.v.'s and drones when there are personnel on the ground that are not associated with the project, which essentially will be all commercial uses. that's a real problem. there are also some suggestions that there will not be the ability to operate outside the line of sight. which means that it has to be a visual eye. the actual person has to be able to see the u.a.v. in the sky. >> so the very notion of the amazon drone that brings you your box and drops it at your front door and hopefully doesn't clip your poodle that's out with this proposal. >> yeah. that's out. exactly. i think what most people believe and i think is true is that automation is going to be the future of this industry. for delivery, for you know precision agriculture, for, you know, pipeline inspections, for disaster management, search and rescue there's a whole host of purposes that u.a.v.'s can be used for. i think we have work to do now. but the one thing i'll say is that the f.a.a. was great in not touching the ability of recreational users to enjoy u.a.v.'s for aerial photography and digital photography, it's wonderful. >> but there was a report today that says there's over $100 million invested in the drone business in the last year. $100 million. no one is doing that because they want another frisby. the whole idea is we can find a cheaper way, safer way -- at least cheaper, but maybe safer as well, to inspect pipelines that have to be inspected to check for leaks. there are things that could be done so much more often because the cost would be lower. is there a sense the f.a.a. doesn't want that happening? >> quite the contrary, the f.a.a. and the evaluation -- in the evaluation of the proposed rule said that they are going to save lives, this is efficient, and in fact, they said this u.a.v.'s can be used for cell tower inspection, pipeline inspections, things that are producing fatalities now which can be stopped with the utilization of this technology. a lot of promise here. i think the only thing we have to keep in mind is that this is a proposed rule. it's take, you know a series of months i'm hopeful that we can get it done as quickly as possible but i don't think it will be this year. other couldn't i -- countries are already operating commercially even outside the line of sight. we are still far behind other nations. >> in terms of privacy, what do we want from rules about drones? you work for two of the companies that support you, amazon and fwoogle, have notions of privacy that are different between them, let alone different from what other people might want. >> so privacy is of fair importance. we all recognize that. and the administration and the president put out an executive order which we thought was very thoughtful on the issue of privacy, you know essentially, it says you cannot do something that's outside the expectation of the consumer. and i think we are experiencing this across technology. which is you know aerial vehicles are not unique to the privacy issue. our mobile phones cameras, helicopters, you know, cam ro on a stick, these things are all -- have the potential to invade our privacy. i think the reality is the industry is ready to work with the government, work with the ntia on developing real clear standards on privacy. >> michael, thank you very much. google has taken another moon shot, not just drones, but how about balloons, to bring the internet to millions of people who don't have the internet. >> could you really check tumblr in papua new guinea. google is trying to launch high-altitude balloons to bring internet to places that don't have access. >> the science of ballooning is one of the world's oldest technologies, sending humans aloft for centuries. now imagine a fleet of unmanned balloons, solar powered, equipped with special antennas so they can talk to each other and to earth. all to deliver affordable internet access to the most remote corners of the world. >> there's four billion people on earth who don't have access to internet and we think that we should try to be part of the solution. >> google's part of the solution is project loon, born out of google x. it's not a pie in the sky idea, it's happening now. >> in many way the balloon is just like a cell phone tower on the ground, except it's 65000 feet up. >> how many balloons do you have up in the air right now? >> right now, about three dozen balloons. >> the plan is to have hundreds of them soaring through the stratosphere, connecting earthlings down below. >> the first six balloons all burst when they reached altitude. the data was relatively low. >> fast forward, some balloons have been aloft for 1070 -- for 170 days. there's nothing obviously different about them but they could be key to stronger faster internet. >> our speed has increased dramatically it's now enough to stream videos, down to the phone you have in your pocket. >> the balloons fly at 65,000 feet twice as high as an airplane. controlled by a command center at google headquarters. what are we looking at here? >> this is realtime data showing what the winds are doing around the world. >> googlers man the center 24-7, charting balloon paths tracking wind and communicating with air traffic controllers as they crisscross global air space. how are responses to countries to you flying in their air space? >> countries love having us come. we've had multiple companies, brazil india, russia, who have asked us to come and do pilot testing in their country. even china is interested in bringing internet to many other people in the rural area. >> it's that last mile that's being worked out and google isn't the only tech giant exploring the skies. they just invested in space-x and facebook is working on internet beaming drones and lasers to show users a specific set of apps for free. >> anyone who is trying to help with the goal of reach manager people in the world is great. >> the skeptics would be like, you could show them google ear version of the internet >> no, we provide whatever son the internet they can get. >> if so the question is why? can google make this a sustainable business or is it a charity? >> it's not a charity. there's revenue we're pairing with telco partners and there are fees users pay that will be split between google and telcos. >> there are people so remote even google can't reach them. >> every country that has a telco in it somewhere has spectrum and our balloons can reach the hallest mountains, craziest islands, that's the cool thing. zemly chang, bloomberg, mountain view, california. >> google is not the only tech giant attempting to bring internet to the corners of the earth. facebook founder mark suckerberg also racing to wire the world. the n.s.a. may be hiding on your hard drive. the story of an amazing technical achievement that led to one of their most far-reaching hacks afflicting computers across the board. watch us screaming on your tablet, phone, amazon fire tv everywhere. it's frustrating being stuck in the house. good thing xfinity's got 2 hour appointment windows. they even guarantee they'll be on time or i get a $20 credit. it's perfect for me... ...'cause i got things to do. ♪ ♪ oh, yeah! woooo! with a guaranteed 2 hour appointment window and a 97% on-time rate xfinity is perfect for people with a busy life. >> you are watching "bloomberg west" where we focus on innovation technology and the future of business. n.s.a. spyware may be hidden in hard drives around the world. researchers in a moscow based lab found spy software in hard drives made by to shea what -- toe sheba, western digital, i.b.m., you name it. it would give the n.s.a. the ability to spy on the majority of the world's computers. we are joined by a representative from cybersecurity firm silent. this is fairly amazing stuff. even when you wipe the hard drive, it stays there. >> that's exactly it system of no matter what you do, no matter what tool you use to dry o-- to try to find it, even if you can find it and it's made to be stealthy, you can try to wipe it and it will come right back, because it's in firmware which is usually put in it at the manufacturers. this is not the first time we've seen this kind of virus in firmware, it is the sophistication of this attack that gives it merit. >> it's not like they snuck in somewhere. it's right across the industry. every major manufacturer of disk drives, according to this report, is infected by this software. >> we don't know the full scope of it quite yet but certainly the indications are that there are real opportunities with these hard drive manufacturers to implant this kind of stuff. now whether or not it was preproduction or post-production is a little bit up in the air and i don't think we'll know that quite yet. so that needs to be fleshed out quite a bit and investigated but what we do know is that the ability to get onto these systems is trivial and to stay there with persistence is trivial so it becomes easy for any adversary, whether a nation state or a simple bad guy cybercriminal, to do whatever they want to on the box. >> so what kind of things do you think the n.s.a. can pick up with a hack such as this as opposed to data hacks we've heard of before. >> could be n.s.a., could be israeli defense, as well, they have similar targets in the middle east and asia that n.s.a. or other u.s. organizations are. in terms of attributions it's hard to give smoking gun proof back to the people that are on the keyboard but certainly possible, highly possible, and probable, that someone like n.s.a. is part of this we just don't know i think, definitively yet. in terms of what they can do, darn near anything. they could pretend to be the user of the computer. they could infect it in such a way to capture screen shots, follow your video, capture all your pass boards and become you on the internet, take your persona. they could infect your access to your bank account. you name it. it really is just up thth creativity of the adversary. >> so the adversary, again they don't say who it was. i'd say the n.s.a. because "reuters" reported that, they're as good as it gets on reporting on cybercrime. but the reports out of russia listed the countries most effective. it listed russia, but also syria, china mali yemen, algeria and afinogenov -- and afghanistan. these seem to be in particular targets of the u.s. is there a notion about what kinds of things they may be after because this is a hard drive attack that tells you maybe these aren't places, these aren't adversaries who are keeping data stored at amazon web service or something. >> they definitely wanted to surveil the targets. it wasn't a destructive attack like sony where they wanted to humiliate, terrorize and destroy. they simply wanted to observe, surveil, understand what they're doing, create an intelligence channel for their military operations most likely and allow them to stay one or two steps ahead of the adversary what they perceive as the adversary which is the victim in these cases. the country, you're absolutely right. they have long been held a target, this series of countries, for the u.s. as well as strail and neighboring countries that are frently. it could easily be these two endkies for sure. >> we established what the entities are, how it works, sort of. let's talk about what it means for business. when it comes to disk drive manufacturers, it's different than selling software or microsoft saying to a customer in germany hey, host your data with us. so what is the business of -- business effect on the companies that sell these devices which we now know to be infected? >> that's a really good question because i don't think we've realy ever seen this example in our industry before. we've certainly seen ader is sares hacking into companies like he novo and others and back dooring the actual bios, the bootable part of the computer, to put their own stuff in there but not to be coming from the manufacturers themselves. if that's truly what's happen, we've got a big problem on our hands. that means that they're either inside the organization as a bad guy or an outsider not allowed to be in there or they've coordinated and worked with the manufactures to allow that type of work to be done. either way it's a big story. >> i've got to think the best position to be in today is a salesman from a french struggling hard drive manufacturer who can walk into a manufacturer of computers and say, hey i'm not western digital and i'm not toe sheba, and i'm not i. -- i'm not toshiba, i'm not i.p.b. -- i.b.m. we talked to somebody who, he didn't say sales were slowing but he said, we've got to do little bit more, we've got to assure they have we have places to store data that isn't in the u.s. so it's safe are the manufacturers fundamentally hurt by this? does it go beyond disk drives at all? are tech companies just going to have more trouble selling in europe? >> u.s. tech companies will be challenged, they have been since the snowdon event. it created such suspicion inside europe, northern europe, london that they are just skeptical of any u.s.-based tech company, especially u.s. security companies. so they often are now requiring to review source code for example, of your product and you have to prove to them that there's nothing fishy or backdoor inside the code itself. the very brains of the product. and we're going to see that for a number of years until the snowdon effect dies down. >> banks and companies will expose their software to the veryen trusted chinese government to sell it there, but that's the state of the world right now. we'll be right back. >> billions of dollars of car dwow in limbo due to the port. labor secretary has flown out here to california to set until distribute -- dispute to try to get things moving again. we have a report from perhaps one of the most important western ports. >> this is the breakwater here. >> these are all ships? >> all ships. i see 25 or 30. >> being out here on the water gives you perspective on how much stuff is sitting on these ships that are going virtually nowhere. according to hofstrau, one 40-foot shipping container, one of these blocks behind me, can hold 150,000 pieces of clothing 3,600 electronics or 15,000 auto parts. when you look at ships they have hundreds of containers loaded onto them. >> it's going to be congested here. >> once an agleement is reached between the dock workers and port workers it's not like all these ships can rush into port and get unloaded. it will take months for the shipping traffic out here to return to normal. >> shelby is in long beach still. there's a lot of stuff out there in the water who is feeling the first effects of this? >> basically anyone who does trade with asia. the cargo ship is feeling the -- with asia via cargo ship is feeling the impacts. just to give you an idea, you've got furniture, apparel, electronics, footwear we're seeing ripple effects across the u.s. economy. the retail industry says a west coast port shipdown would cost about $2 billion a day. automakers such as honda have announced that they're cutting u.s. output because they don't have the car parts and can't make the cars fast enough and the tech sector is being impacted because a lot of consumer electronics are shipped in these containers, things like d.v.d.'s, sometimes televisions, game consoles. there are also electronic parts. anyone manufacturing electronics is being hit hard as well. if you look at the big picture, 29 ports from seattle to san diego account for, handle about 40% of the cargo that comes in via ships, about 12 1/2% of g.d.p. if you look at those numbers, it's a sense of how much impact this port shutdown is having. >> it is huge. and i cover the heck out of this back in 2002 last time the i.o.w. got shut out. it's fundamentally a technology story this union, all the way back in the day, said technology is coming, we're going to get rid of the longshoremen throwing things onto ships, we're going to bring containers, have fewer employees, but you've got to promise us we can have another generation or two of a shrinking work force. that technology battle is still happening on the ports. >> yeah, it's really at the oferte this dispute we're seeing today. i'm told behind me, some of these newer cranes can operate themselves. they're completely robotic. but because of the union contract, we're still paying one or two men to operate the cranes at a time. so they're still fighting technology fighting for their own jobs. but as you said the introduction of containers and automation of shipping continue it is to advance and it's really transformed this whole industry. >> it's a fascinating story, with a deep impact. shelby, glad to have you on the ground at the port covering it. some other world news headlines, indonesia's central bank cut its main interest rate for the first time in three years as the nation deals with cooling inflation. neeverb niche's economy shrank -- indonesia's economy shrank last quarter. 14 central banks around the world have eased monetary policy since the start of 2015. french president oland is ramming thru reforms by emergency action after facing criticism from his own party. the bills including easing labor regulations but critics say it re-- it eases restrictions on labor. the italian maker of nutella, ferrero-rocher says it's not for sale after their owner died last week. the son strongly denies that the company may be sold with nestle often mentioned as a suitor. >> i'm cory johnson this is "bloomberg west." silicon, yes, just plain old silicon, has been the component of choice for everything from p.c. ships to smart phones. but there's a new kid on the block that may be more efficient, or superefficient replacement. it's called gallium nitrate g.a.n. the transsis tores made from it are said to be smaller and faster than silicon transsis tores. could this change the way the semiconductor industry works? do you call this g.a.n.? >> we call it gan. >> tell why -- tell me why it hasn't been able to used before? >> it's just in the last few years been able to be grown on top of silicon. we kahn use the same facilities and get the same cost structure. it's not just more efficient but lower cost to produce than silicon. >> why? >> the chips are much smaller. more amount of wafer and the wafer is just processed -- >> smaller because they can carry more juice in a smaller space? >> yes. the electrons are more efficient, actually, is why. >> in terms of making this what are the raw components? >> you grow a very thin layer of galliun nitrate, throw it in a foundry, do layers whike on any silicon chip. >> silicon below the g.a.n.? >> use a standard silicon wafer as a starting point. >> what changed to make this process more available, the electrical properties have been known for a long time, yes? >> they have been but only maybe 15 years ago did somebody actually figure out how to grow this crystal on top of silicon and only a few years ago did we at e.p.c. figure out how to make it work like a power transistor. >> what was the key to that? >> some magic in the material science world, but making a device that could stay turned off until you wanted to turn it on was really the key. >> how so? >> if a device is turned on all the time until you try to turn it off, think about the short circuit and the minute you turn your switch on everything goes crazy. you have to make it work in the opposite direction and that's something at e.p.c. we did. >> now that the processes are drn processors are so small and so thin, does it make sense you've got smaller wafers in terms of thickness and size across the wafer does it make more to do multiple layers of different chemical processs? >> yeah. it absolutely does. you can layer silicon and gallium nigh trite and do incredible things. with gallium nitrate you start out with about a thousand times advantage over silicon. and we're back drafting on all the improvements of silicon. >> and does it have to be fundamentally different to incorporate the g.a.n.? >> we run it side-by-side with silicon wafers in a foundry in taiwan. >> moore's law being a marketing dream as opposed to an actual scientific process, does this -- is this the story we hear every year of some new chemical discovery that allows for moore's law to continue, for processors to continue to get cheaper and fast her >> i think moore's lau -- law is a social pact more than anything else, you promise to keep doing more and more. sill condition is out of gas there but gallium is just getting started. >> how did your company get started? >> we got started about eight years ago. we had no money, i found a company in taiwan that was willing to not only invest but let us use their silicon foundry to make g.a.n. products which was a risk. from there, we were able to get rolling with very little capital. >> and an existing factory, one of the things we know about semiconductor, you need a new fab with a new process. old fabs are quickly depreciated because they don't have a lot of value when they're 0 years old. >> we use a fully depreciated fab but give it new life. we make products that are more than 10x better than the silicon products. >> how big is the market? >> the direct market is about $2 billion but we're expanding into analog i.c.'s, that's a $30 billion market and beyond that is digital, there are some technical hurdles to overcome but that's $350 billion. i think g.a.n. will take the whole piece eventually. >> what's the biggest thing from going from power to complicated an log to super complicated digital chips. >> to analog, no barriers, we'll have that in the next year or system of digital requires some fundamental development of the semiconductor itself and i put a question mark on it. >> thank you very much. >> thank you. >> time for the "b-west byte," adam joins from the newsroom. what have you got? >> 3,700, the numb of people who turned out in san francisco for a blowout for the company product hunt which is a hot arbiter of cool for a lot of new apps services and other internet trinkets released every day. founded by 28-year-old ryan hoover who over the past year has made himself into an unconventional power broker in silicon valley. >> cool for nerds. so this helps people figure out what? >> it's kind of -- it's a way to find out all the latest products that have been introduced on a given day. some of them are clever, some wacky, some of them are a rubber babbed gun. it ranges if the interesting to the ridiculous. >> it's like a combination of craig's list meets the maker's fair meeting venture capital round? >> exactly. a lot of companies that post products on there, if they get popular can get thems invested in. it's kind of an example of the tech stuff going on. >> thank you very much. catch more "bloomberg west" right here tomorrow.
despite the cease fire. that provides crucial transportation between rebel strongholds. snapchat seeking a new funding round, according to a person with knowledge of the matter who says they want to raise $500 million. at that valuation, the photo disappearing app would be the third highest in the world behind google. a meeting billed to be about advances in health care devices, between apple and mexican authorities. website zillow completed acquisition of trulia. it's now resamed zillow group. they cut 50 jobs as a result of the acquisition. tech companies just 2,500 miles away in silicon valley. apple the latest tech giant, building a team of a few hundred people to work on the early stages of an electric car. some of those workers have been poached from car companies to work on what's being called project titan. apple, google, tess la and uber all involved, what role will the automakers play as they create innovation centers in silicon valley. joining us now, tim hagen and john leonard. is there a different discussion about what innovation is for cars away from the auto industry than in the auto industry? >> i think so. if you look at the exciting pictures that emerged this weekend of a mini van decked out with sensors that allege to be an apple car, you see technology for doing very precise localization and mapping. some of the sort of parts of what's involved in the google car. so it's a different sort of set of techniques and skills than sort of the traditional detroit auto making industry. >> tim higgins, i love, i didn't think about this when the story crossed but then i saw your byline york came from detroit where you covered automakers you come here to cover apple. what are the similarities between these companies? >> apple has a lot of cash. auto industry churns through cash quickalism usually about $1 billion for a new car to created. >> $1 billion for a new car, for companies that have been making cars for a hundred years. >> it's an expensive time-consuming process. apple has billions, they're not short on cash. they're used to doing supply chain management around the world, used to dealing with the retail network all over the world. in some ways they have a lot of things in place that global automaker would have. that said, designing and building cars are complicated, something that trips up even long experienced automakers with regulations, safety, marketing hitting what the consumer wants seven years down the road. it's a very long lead time for developing a car. >> car companies spend boat loads of money on r&d on top of con tearerships full of money, and the history of knowledge they've built up, is there an accumulated bit of knowledge or is it a calcified bureaucracy that thinks about the way they do things instead of thinking of what they would do with a blank piece of pain her >> when you talk to engineers in silicon valley, they feel frustration with automakers. talk to guys in detroit and they say there's a reason we're so slow. some of it is safety and regulations and the challenges of putting a product on the road where people's lives will be in jeopardy if something goes wrong. >> more on that is it about the way that the cars are made? is it because they've -- they're wrestling with union contracts and wrestling with existing factors and wrestling with relationships with dealers they've got to figure out what to put into their pipeline as opposed to what to put on the road. >> tesla, you can say what you will about their business model but they have created maybe an interest in the auto space from new players who have said look at the challenges in the past but look at this new entrant they're able to do what they can do in a short amount of time. what can other folks do with a lot of money? that's where some of the excitement is coming from. >> when you look at the excitement, what is it technologically you feel slike ready to be improved upon the most? is it battery, the duration of the battery, self-driving aspect or road awareness? >> i think it's safety. i think that the number of lives lost to traffic accidents, over 30,000 per year in the u.s. alone, over a million worldwide is a tragedy. i think with a better -- with better sensors and artificial intelligence coming online, we should have the cape to believe the radically reduce accidents. edge that's the thing that's exciting about what can happen now. >> safe city a great thing to talk about but apple, google and other companies are looking at the idea of what that user is doing with the time then they're driving. these are companies that want to create a business where your digital life is at the center of their devices. when you're driving to the point of safety, you're not able to fully engage in a digital life tile stile. if you're pushing a product that allows people to be in that space throw autonomous driving or other functions, that opens up commerce. >> it's a horrible irony that companies that are responsible for so many accidents due to their devices are now looking at getting into the car business. you've witnessed what goes on in detroit and seen the engineering centers in silicon valley is there a different pace of innovation in silicon valerie? >> i think so. a silicon valley investor wants return in 1 months. google in building its small part for theship -- in building its small cars are partnering with companies in michigan. there are parts that silicon valley will be good at and parts that the sort of more eastern u.s. industries will be good at and it could all come together. >> interesting times. thank you both very much. drone delivery is dealt a new setback. new drone proposals, what it could mean for companies like amazon and google, thinking about what goes up in the sky, next. ♪ >> i'm cory johnson, this is "bloomberg west," here's a check of our headlines. greece's government requests a -- an extension of its loan agreement for six more months. it's a step that could ease the standoff over greece's financing. the positive outflow is greek banks are celebrating. the u.s. subsidiary of swiss food giant nestle will stop putting artificial ingrowth greed yents in candy. instead, they'll use natural ingredients for 250 products including butterfingers, crunch bars and baby ruth. there's a change in china's market, the top smart phone vendor last year edging out samsung. but in the last quarter, news gets worse for samsung. they've fallen behind apple and two other companies. skies getting a lot more crowded. the f.a.a. released guidelines for repeating commercial drones into air space. peter, the rules are not as stringent as some people might have thought they would be. >> that's right. a lighter touch, at least that's what the f.a.a. is trying to -- to label these rules as. you know how widely anticipated these rules have been for months, even years. they've been waiting for the f.a.a. to outline exactly how they'll allow drones in commercial space. to some it may suggest a lighter touch from the f.a.a. but there are also critics that say they're too draconian, limiting the opportunities for commercial entities to use drones. walk you through some of the main specs here, the drones in question, must weigh less than 55 pounds, operator must maintain line of slight, operators must be 17 or older but don't have to have a pilot's license, they have to pass a written test and submit to the t.s.a. for vetting as well. this is, again, rulesing zines -- guidelines, not as tough as they expected for the f.a.a. but still a long process from here. >> really interesting stuff. i can't tell you, around here there are so many companies working on this big idea of drones and they've been waiting for these rules. maybe the roads, or the skies, are open. i'm going to duck. i'm too tall for this new world. what do the new rules mean? the big guys like amazon and google, joining me now from washington, michael drobek, part of the small drone coalition also senior policy advisor at akin gump. what's in these rules that are good and what's bad? >> i think the fact that we have rules is in and of itself great. it gives us a platform upon which to build. i would say that there are some problems to the extent that the rules will prohibit operations of -- commercial operations of u.a.v.'s and drones when there are personnel on the ground that are not associated with the project, which essentially will be all commercial uses. that's a real problem. there are also some suggestions that there will not be the ability to operate outside the line of sight. which means that it has to be a visual eye. the actual person has to be able to see the u.a.v. in the sky. >> so the very notion of the amazon drone that brings you your box and drops it at your front door and hopefully doesn't clip your poodle, that's out with this proposal. >> yeah. that's out. exactly. i think what most people believe and i think is true is that automation is going to be the future of this industry. for delivery, for you know precision agriculture, for, you know, pipeline inspections, for disaster management, search and rescue, there's a whole host of purposes that u.a.v.'s can be used for. i think we have work to do now. but the one thing i'll say is that the f.a.a. was great in not touching the ability of recreational users to enjoy u.a.v.'s for aerial photography and digital photography, it's wonderful. >> but there was a report today that says there's over $100 million invested in the drone business in the last year. $100 million. no one is doing that because they want another frisby. the whole idea is we can find a cheaper way, safer way -- at least cheaper, but maybe safer as well, to inspect pipelines that have to be inspected to check for leaks. there are things that could be done so much more often because the cost would be lower. is there a sense the f.a.a. doesn't want that happening? >> quite the contrary, the f.a.a. and the evaluation -- in the evaluation of the proposed rule said that they are going to save lives, this is efficient, and in fact, they said this u.a.v.'s can be used for cell tower inspection, pipeline inspections, things that are producing fatalities now which can be stopped with the utilization of this technology. a lot of promise here. i think the only thing we have to keep in mind is that this is a proposed rule. it's take, you know a series of months, i'm hopeful that we can get it done as quickly as possible but i don't think it will be this year. other couldn't i -- countries are already operating commercially even outside the line of sight. we are still far behind other nations. >> in terms of privacy, what do we want from rules about drones? you work for two of the companies that support you amazon and google, have notions of privacy that are different between them, let alone different from what other people might want. >> so privacy is of fair importance. we all recognize that. and the administration and the president put out an executive order which we thought was very thoughtful on the issue of privacy, you know, essentially it says you cannot do something that's outside the expectation of the consumer. and i think we are experiencing this across technology. which is, you know, aerial vehicles are not unique to the privacy issue. our mobile phones, cameras helicopters, you know, cam ro on a stick, these things are all -- have the potential to invade our privacy. i think the reality is the industry is ready to work with the government, work with the ntia, on developing real clear standards on privacy. >> michael, thank you very much. google has taken another moon shot, not just drones, but how about balloons, to bring the internet to millions of people who don't have the internet. ♪ ♪ >> could you really check tumblr in papua, new guinea. google is trying to launch high-altitude balloons to bring internet to places that don't have access. >> the science of ballooning is one of the world's oldest technologies, sending humans aloft for centuries. now imagine a fleet of unmanned balloons, solar powered, equipped with special antennas so they can talk to each other and to earth. all to deliver affordable internet access to the most remote corners of the world. >> there's four billion people on earth who don't have access to internet and we think that we should try to be part of the solution. >> google's part of the solution is project loon, born out of google x. it's not a pie in the sky idea, it's happening now. >> in many ways the balloon is just like a cell phone tower on the ground, except it's 65,000 feet up. >> how many balloons do you have up in the air right now? >> right now, about three dozen balloons. >> the plan is to have hundreds of them soaring through the stratosphere, connecting earthlings down below. >> the first six balloons all burst when they reached altitude. the data was relatively low. >> fast forward, some balloons have been aloft for 1070 -- for 170 days. there's nothing obviously different about them but they could be key to stronger, faster internet. >> our speed has increased dramatically, it's now enough to stream videos, down to the phone you have in your pocket. >> the balloons fly at 65,000 feet, twice as high as an airplane. controlled by a command center at google headquarters. what are we looking at here? >> this is realtime data showing what the winds are doing around the world. >> googlers man the center 24-7, charting balloon paths, tracking wind, and communicating with air traffic controllers as they crisscross global air space. how are responses to countries to you flying in their air space? >> countries love having us come. we've had multiple companies, brazil, india, russia, who have asked us to come and do pilot testing in their country. even china is interested in bringing internet to many other people in the rural area. >> it's that last mile that's being worked out and google isn't the only tech giant exploring the skies. they just invested in space-x, and facebook is working on internet beaming drones and lasers to show users a specific set of apps for free. >> anyone who is trying to help with the goal of reach manager people in the world is great. >> the skeptics would be like, you could show them google ear version of the internet >> no, we provide whatever son the internet they can get. >> if so, the question is why? can google make this a sustainable business or is it a charity? >> it's not a charity. there's revenue, we're pairing with telco partners, and there are fees users pay that will be split between google and telcos. >> there are people so remote even google can't reach them. >> every country that has a telco in it somewhere has spectrum and our balloons can reach the hallest mountains, craziest islands, that's the cool thing. emily chang, bloomberg, mountain view, california. >> google is not the only tech giant attempting to bring internet to the corners of the earth. facebook founder mark suckerberg also racing to wire the world. the n.s.a. may be hiding on your hard drive. the story of an amazing technical achievement that led to one of their most far-reaching hacks afflicting computers across the board. watch us screaming on your tablet, phone, amazon fire tv, everywhere. ♪ ♪ >> you are watching "bloomberg west" where we focus on innovation, technology and the future of business. n.s.a. spyware may be hidden in hard drives around the world. researchers in a moscow based lab found spy software in hard drives made by to shea what -- toe sheba, western digital i.b.m., you name it. it would give the n.s.a. the ability to spy on the majority of the world's computers. we are joined by a representative from cybersecurity firm silent. this is fairly amazing stuff. even when you wipe the hard drive, it stays there. >> that's exactly it, system of no matter what you do, no matter what tool you use to dry o-- to try to find it, even if you can find it and it's made to be stealthy, you can try to wipe it and it will come right back, because it's in firmware, which is usually put in it at the manufacturers. this is not the first time we've seen this kind of virus in firmware, it is the sophistication of this attack that gives it merit. >> it's not like they snuck in somewhere. it's right across the industry. every major manufacturer of disk drives, according to this report, is infected by this software. >> we don't know the full scope of it quite yet but certainly the indications are that there are real opportunities with these hard drive manufacturers to implant this kind of stuff. now whether or not it was preproduction or post-production is a little bit up in the air and i don't think we'll know that quite yet. so that needs to be fleshed out quite a bit and investigated but what we do know is that the ability to get onto these systems is trivial and to stay there with persistence is trivial so it becomes easy for any adversary, whether a nation state or a simple bad guy cybercriminal, to do whatever they want to on the box. >> so what kind of things do you think the n.s.a. can pick up with a hack such as this as opposed to data hacks we've heard of before. >> could be n.s.a., could be israeli defense, as well, they have similar targets in the middle east and asia that n.s.a. or other u.s. organizations are. in terms of attributions it's hard to give smoking gun proof back to the people that are on the keyboard but certainly possible, highly possible, and probable, that someone like n.s.a. is part of this we just don't know, i think, definitively yet. in terms of what they can do darn near anything. they could pretend to be the user of the computer. they could infect it in such a way to capture screen shots, follow your video, capture all your pass boards and become you on the internet, take your persona. they could infect your access to your bank account. you name it. it really is just up thth creativity of the adversary. >> so the adversary, again, they don't say who it was. i'd say the n.s.a. because "reuters" reported that, they're as good as it gets on reporting on cybercrime. but the reports out of russia listed the countries most effective. it listed russia, but also syria, china, mali, yemen, algeria and afinogenov -- and afghanistan. these seem to be in particular targets of the u.s. is there a notion about what kinds of things they may be after because this is a hard drive attack, that tells you maybe these aren't places, these aren't adversaries who are keeping data stored at amazon web service or something. >> they definitely wanted to surveil the targets. it wasn't a destructive attack like sony where they wanted to humiliate, terrorize and destroy. they simply wanted to observe, surveil, understand what they're doing, create an intelligence channel for their military operations most likely and allow them to stay one or two steps ahead of the adversary what they perceive as the adversary which is the victim in these cases. the country, you're absolutely right. they have long been held a target, this series of countries, for the u.s. as well as strail and neighboring countries that are frently. it could easily be these two entities for sure. >> we established what the entities are, how it works, sort of. let's talk about what it means for business. when it comes to disk drive manufacturers, it's different than selling software or microsoft saying to a customer in germany, hey, host your data with us. so what is the business of -- business effect on the companies that sell these devices which we now know to be infected? >> that's a really good question because i don't think we've realy ever seen this example in our industry before. we've certainly seen ader is sares hacking into companies like he novo and others and back dooring the actual bios, the bootable part of the computer, to put their own stuff in there but not to be coming from the manufacturers themselves. if that's truly what's happen we've got a big problem on our hands. that means that they're either inside the organization as a bad guy or an outsider, not allowed to be in there or they've coordinated and worked with the manufactures to allow that type of work to be done. either way, it's a big story. >> i've got to think the best position to be in today is a salesman from a french struggling hard drive manufacturer who can walk into a manufacturer of computers and say, hey, i'm not western digital and i'm not toe sheba, and i'm not i. -- i'm not toshiba, i'm not i.p.b. -- i.b.m., we talked to somebody who, he didn't say sales were slowing but he said, we've got to do little bit more, we've got to assure they have we have places to store data that isn't in the u.s. so it's safe are the manufacturers fundamentally hurt by this? does it go beyond disk drives at all? are tech companies just going to have more trouble selling in europe? >> u.s. tech companies will be challenged, they have been since the snowdon event. it created such suspicion inside europe, northern europe, london, that they are just skeptical of any u.s.based tech company especially u.s. security companies. so they often are now requiring to review source code, for example, of your product and you have to prove to them that there's nothing fishy or backdoor inside the code itself. the very brains of the product. and we're going to see that for a number of years until the snowdon effect dies down. >> banks and companies will expose their software to the very untrusted chinese government to sell it there, but that's the state of the world right now. we'll be right back. ♪ ♪ >> billions of dollars of car dwow in limbo due to the port. labor secretary has flown out here to california to set until distribute -- dispute to try to get things moving again. we have a report from perhaps one of the most important western ports. >> this is the breakwater here. >> these are all ships? >> all ships. i see 25 or 30. >> being out here on the water gives you perspective on how much stuff is sitting on these ships that are going virtually nowhere. according to hofstrau, one 40-foot shipping container, one of these blocks behind me, can hold 150,000 pieces of clothing, 3,600 electronics or 15,000 auto parts. when you look at ships they have hundreds of containers loaded onto them. >> it's going to be congested here. >> once an agleement is reached between the dock workers and port workers, it's not like all these ships can rush into port and get unloaded. it will take months for the shipping traffic out here to return to normal. >> shelby is in long beach still. there's a lot of stuff out there in the water who is feeling the first effects of this? >> basically, anyone who does trade with asia. the cargo ship is feeling the -- with asia via cargo ship is feeling the impacts. just to give you an idea, you've got furniture, apparel electronics, footwear, we're seeing ripple effects across the u.s. economy. the retail industry says a west coast port shipdown would cost about $2 billion a day. automakers such as honda have announced that they're cutting u.s. output because they don't have the car parts and can't make the cars fast enough and the tech sector is being impacted because a lot of consumer electronics are shipped in these containers, things like d.v.d.'s, sometimes televisions game consoles. there are also electronic parts. anyone manufacturing electronics is being hit hard as well. if you look at the big picture 29 ports from seattle to san diego account for, handle about 40% of the cargo that comes in via ships, about 12 1/2% of g.d.p. if you look at those numbers it's a sense of how much impact this port shutdown is having. >> it is huge. and i cover the heck out of this back in 2002 last time the i.o.w. got shut out. it's fundamentally a technology story this union, all the way back in the day, said technology is coming, we're going to get rid of the longshoremen throwing things onto ships, we're going to bring containers, have fewer employees, but you've got to promise us we can have another generation or two of a shrinking work force. that technology battle is still happening on the ports. >> yeah, it's really at the oferte this dispute we're seeing today. i'm told behind me, some of these newer cranes can operate themselves. they're completely robotic. but because of the union contract, we're still paying one or two men to operate the cranes at a time. so they're still fighting technology, fighting for their own jobs. but as you said the introduction of containers and automation of shipping continue it is to advance and it's really transformed this whole industry. >> it's a fascinating story, with a deep impact. shelby, glad to have you on the ground at the port covering it. some other world news headlines, indonesia's central bank cut its main interest rate for the first time in three years as the nation deals with cooling inflation. indonesia's economy shrank last quarter. 14 central banks around the world have eased monetary policy since the start of 2015. french president hollande is ramming thru reforms by emergency action after facing criticism from his own party. the bills including easing labor regulations but critics say it re-- it eases restrictions on labor. the italian maker of nutella ferrero-rocher says it's not for sale after their owner died last week. the son strongly denies that the company may be sold with nestle often mentioned as a suitor. >> i'm cory johnson, this is -- there will be more after the break. ♪ ♪ >> i'm cory johnson, this is "bloomberg west." silicon, yes, just plain old silicon, has been the component of choice for everything from p.c. ships to smart phones. but there's a new kid on the block that may be more efficient, or superefficient replacement. it's called gallium nitrate g.a.n. the transitors made from it are said to be smaller and faster than silicon transsis tores. could this change the way the semiconductor industry works? do you call this g.a.n.? >> we call it gan. >> tell why -- tell me why it hasn't been able to used before? >> it's just in the last few years been able to be grown on top of silicon. we can use the same facilities and get the same cost structure. it's not just more efficient but lower cost to produce than silicon. >> why? >> the chips are much smaller. more amount of wafer and the wafer is just processed -- >> smaller because they can carry more juice in a smaller space? >> yes. the electrons are more efficient, actually, is why. >> in terms of making this, what are the raw components? >> you grow a very thin layer of galliun nitrate, throw it in a foundry, do layers whike on any silicon chip. >> silicon below the g.a.n.? >> use a standard silicon wafer as a starting point. >> what changed to make this process more available, the electrical properties have been known for a long time, yes? >> they have been but only maybe 15 years ago did somebody actually figure out how to grow this crystal on top of silicon and only a few years ago did we at e.p.c. figure out how to make it work like a power transistor. >> what was the key to that? >> some magic in the material science world, but making a device that could stay turned off until you wanted to turn it on was really the key. >> how so? >> if a device is turned on all the time until you try to turn it off, think about the short circuit and the minute you turn your switch on everything goes crazy. you have to make it work in the opposite direction and that's something at e.p.c. we did. >> now that the processes are drn processors are so small and so thin, does it make sense, you've got smaller wafers in terms of thickness and size across the wafer, does it make more to do multiple layers of different chemical processs? >> yeah. it absolutely does. you can layer silicon and gallium nigh trite and do incredible things. with gallium nitrate you start out with about a thousand times advantage over silicon. and we're back drafting on all the improvements of silicon. >> and does it have to be fundamentally different to incorporate the g.a.n.? >> we run it side-by-side with silicon wafers in a foundry in taiwan. >> moore's law being a marketing dream as opposed to an actual scientific process, does this -- is this the story we hear every year of some new chemical discovery that allows for moore's law to continue, for processors to continue to get cheaper and fast her >> i think moore's lau -- law is a social pact more than anything else, you promise to keep doing more and more. sill condition is out of gas there but gallium is just getting started. >> how did your company get started? >> we got started about eight years ago. we had no money, i found a company in taiwan that was willing to not only invest but let us use their silicon foundry to make g.a.n. products, which was a risk. from there, we were able to get rolling with very little capital. >> and an existing factory, one of the things we know about semiconductor, you need a new fab with a new process. old fabs are quickly depreciated because they don't have a lot of value when they're 0 years old. >> we use a fully depreciated fab but give it new life. we make products that are more than 10x better than the silicon products. >> how big is the market? >> the direct market is about $2 billion but we're expanding into analog i.c.'s, that's a $30 billion market and beyond that is digital, there are some technical hurdles to overcome but that's $350 billion. i think g.a.n. will take the whole piece eventually. >> what's the biggest thing from going from power to complicated an log to super complicated digital chips. >> to analog, no barriers, we'll have that in the next year or system of digital requires some fundamental development of the semiconductor itself and i put a question mark on it. >> thank you very much. >> thank you. >> time for the "b-west byte," adam joins from the newsroom. what have you got? >> 3,700, the numb of people who turned out in san francisco for a blowout for the company product hunt which is a hot arbiter of cool for a lot of new apps services and other internet trinkets released every day. founded by 28-year-old ryan hoover who over the past year has made himself into an unconventional power broker in silicon valley. >> cool for nerds. so this helps people figure out what? >> it's kind of -- it's a way to find out all the latest products that have been introduced on a given day. some of them are clever, some wacky, some of them are a rubber babbed gun. it ranges if the interesting to the ridiculous. >> it's like a combination of craig's list meets the maker's fair meeting venture capital round? >> exactly. a lot of companies that post products on there, if they get popular can get thems invested in. it's kind of an example of the tech stuff going on. >> thank you very much. catch more "bloomberg west" right here tomorrow. ♪ >> the following is a paid advertisement from time life. sit back and relive the moment. it was the decade of 8-track tapes, rotary phones, big console tv's, tower-sized stereo speakers, am radio, and great songs on 45s. >> ♪ brandy, you're a fine girl ♪
headquarters in maryland, two man reportedly dressed as women tried to ram the gate with their car, and police opened fire. one suspect was killed, the other hurt. the us the fbi does not believe they were terrorist attacks. and sergey lavrov has left the nuclear talks and he says he will only return with a realistic understanding of the deal. there is tomorrow's self-imposed deadline. >> we are here because we believe in hell can be done. it is in everybody's interest that a deal does get done, but it has to be a deal that could the ball behind the reach of iran. there cannot be any compromise on that, so if we're going to get done, iran has to take a deep breath and make some tough decisions to ensure that those red lines can be met. cory: how fast to roll back sanctions and dispose of the already enriched iranian uranium . and falling short on a deal with u.s. officials to clear up items after a bank was accused of laundering money while doing business with terrorist regimes. bank performs and the pace of change being cited as an adequate, according to two people familiar with the report. and title launched by jay-z. he bought it for millions in january. the latest entrant into the crowded main business. there are artists that owns stakes in it. and the national football league and the atlanta falcons have been fine for breaking the rules. one person was suspended after your games for sending text messages to the sidelines during the game, and the team was docked a pick after pumping in crowd noise during a game. and now, indiana legislators are looking to clarify these days's controversial religious freedom law, which has angered many in the community, allowing businesses to deny service to gay people based on the religious views of the business. speaking out in the tech community, apple ceo tim cook, and marc benioff, who has limited travel, and angie's list has withdrawn a proposal to expand the indianapolis headquarters. here is the ceo on the law. bill: it had nothing to do with creating jobs nothing to do with educating children, nothing to do with attracting talent to the state of indiana. corey: governor pence defense the law that he signed. governor pence: is tolerance a two way street or not? there is a lot of talk about tolerance today having to do with people on the left, but here indiana steps forward to protect the constitutional rights and privileges of freedom of religion for people of faith and families of faith in our state, and this avalanche of intolerance has been poured on our state. it is just outrageous. cory: we were looking for businesses that would speak out in favor of the law and could not find any but a representative of an lgbt tech company joins us now. this law has drawn a lot of -- i am surprised about the instant reaction from the tech community. what is different about this law and this time over the last year or so? guests: thank you so much for having me on. if you look back to arizona they will be passing a bill very similar to this, which actually was vetoed and it shows that the tech industry and many industries around the country and around the world just realized that this is discrimination in its most blatant form, and discriminating in business or those around the country is bad for business. tim cook said it in his op-ed in the fact that this coronation is bad for business, and quite frankly i would turn around and ask government pence -- governor patrick pence, why was a closed-door signing if he was truly feeling that this was a good law for the state of indiana? cory: said jerry joins us from bloomington indiana with a school of business, and i wonder there at the school, jerry, when you look at this, is there a sense -- when this was being discussed, that this would have a big impact in the global tech community, or is this a local issue? jerry: it has been perceived by many to be an issue in attracting tech businesses and keeping tech businesses in indiana. there have been a couple of cases in the last week that have stepped forward, changing plans. angie's list was going to build a $40 million facility involving over 1000 employees, and that seems to be on hold. salesforce has a major operation there, and they are talking about limiting flights to indiana and travel to indiana. so if more companies are of this sort that what to bring in people and technology and people who are looking for a free lifestyle to go with that, they could have some challenges in attracting and retaining those people. cory: i have been particularly amazed at the this role reaction from mark benioff of salesforce. he posted on facebook late last night, and in part, he wrote in response to this unjust legislation, we are reducing employee travel to indianapolis and canceling all marketing events that require customers to travel those that are impacted by the discriminatory environment and want to move out of indiana. jerry, to me, this is kind of unprecedented in modern times the ceo of one of the biggest software companies in the world is saying i'm going to help people leave the state because of a law they just passed. jerry: well, that is certainly a strong statement and one that is getting a lot of attention both in government and in the private sector. there has been a lot of comment by businesses about the problems that this legislation is perceived to cause, and i say perceived because the legislation itself, the bill is really unclear. it does not directly address anything having to do with groups that would be discriminated against or not. it basically sets forth judicial standards by which case cases would be judged if there is a conflict in rights, and, unfortunately, this legislation poses two basic types of freedom , freedom of religion and freedom from discrimination to potentially come to butting heads. i think the author wants to come out ahead when the legal profession. cory: they always win. chris wood, tim cook's response, really quick, broadening this let me read from his op-ed in the washington post. he said this is not a political issue or a religious issue. it is about how we treat each other as human beings. opposing summation takes courage. it is time for all of us to be courageous. this is the biggest company in the world by market cap chris, and it is run by a gay man. it is unusual for him to be such a leader and be so candid on this issue? chris: i think he realizes that the best time and place it is important for him to be outspoken about this. last year, i was on "bloomberg west" last year talking about his announcement in alabama and coming out eventually as gay. it is really important for him to be a leader in his position talking about the importance each other in 18 and as human beings, and quite frankly, the lgbt community, each individual in the lgbt community is just as human as the next individual standing next to them, whether they identify as lgbt or not, and at the end of the day, or business what matters is that we get the job done, that we continue to produce technology that are changing lives each and every day, and i really feel that tim cook sees that. he realizes that coronation is extremely bad for business and that this law is really rationalizing injustice for so many, not just the lgbt community, but it is taking a direct hit at the lgbt community. cory: chris wood we appreciate your time, thank you. an up next, a streaming appd je rr, taking things by storm. y some more cat -- meerkating when we return. ♪ cpru" -- cory: coming up meerkat and germanwings. it appears the copilot may crash the plane after having suicidal thoughts for years. >> he had at that time been in treatment of a psychotherapist because of what is documented as being suicidal at that time. cory: german authorities also created a homicide mission to determine whether or not andreas lubitz deliberately crashed the plane. and the group will look to unlock its next round of bailout money still needs a lot of work, i wanted to some officials who say the proposal is short on information and content. greece could run out of money within weeks without a new bailout, and the national football league making a separate business, granting operational controls for nfl on location. a new holding company will be providing unique fan access. all right. it is one of the most talked about apps, and we are talking that a live streaming app called meerkat, and it has raised $14 million. they broadcast live videos and comments to twitter. you cannot replay them, like snapchat, but here is a question. it has launched. it has raised money. it is a huge hit. their ceo, ben, joints need right now. congratulations. it is amazing attention to what you guys are doing. the app store numbers half volleyed off. what do you make of this? ben: it is not that early in our venture. we have been in this space for 2.5 years now. we have known success and failure as more. one thing that is very interesting to see about us is that it was actually able to unlock behavior of live streaming behavior, like people who would not live stream otherwise are now live streaming. cory: we are meerkating right now. holding your phone, and there we are on meerkat, since one to watch this kind of a broadcast while it is happening, what do they do? ben: once you go live, it is a lifestream published on twitter, and everyone who follows you get a push notification, and they can watch you. cory: and my twitter account or your twitter account, because our bow on there, and we can discuss? ben: yes, that will be shown on your twitter account. cory: you watched at sxsw right? ben: no, actually, it was just a side project. we had a product of live video and we closed that. it was maybe 400,000 users that we had, and then we shut it down and went to this exploratory mode when we said we're going to release a product every two months, and one of them was m meerkat, and we put it on product hunt on february 27, and we did not plan to do anything like that. but the community was extremely supportive. cory: there is also this sort of search for the next big thing, because twitter was launched at sxsw, some people are looking for the next twitter. ben: twitter was out for nine months before sxsw, and there is a cultural readiness, a technological readiness. we do not look at it as kings or queens or anything. it is more about is the technology now -- it allows a different behavior that could be impactful in a meaningful way, right, and if we can allow people to participate, a large audience to participate in happening, by removing friction by going live, by removing friction from watching at different places in the world, and everyone can watch live screen from their pockets, basically, or stream live video from the phones in their pocket. that means that the cost to go live and to distribute to a large audience is literally zero now. cory: people commenting now as we look at the comments as they come across, but i also wonder, instantly twitter announces they are going to pull out the rug from under you. but also twitter announcing a competitive product. is that a sign of success? ben: for the space, it is a sign of success. twitter was a launching pad. to be receptive, for people to receive us so well in the beginning, and obviously we understand twitter than the business decision it is making and it is also a good, good sign to see that the company -- it is a great product like twitter doing steps in this direction. cory: you and i will have a conversation on meerkat, and we appreciate your coming by, ben. we will be right back. ♪ cory: i am cory johnson, and this is "bloomberg west," and we just spoke to the ceo of meerkat and a competitor about streaming video from camera straight to social media. yet they both survive? is there room for two? tell me. guest: big launch on product hunt. cory: to me, the launch of meerkat and twitter on top of it, pulling out the rug and not letting them make a social graph and then launching a competitive product, what do you make of that? ryan: it is interesting that they are entering the live streaming space at the same time. this happens republic, not that it is twitter copying them or vice versa. it is a change of behavior or a change of technology. cory: what is the inspiration? is it face time or snapchat? ryan: people being willing to share themselves in public, and then, of course, technology. bandwidth. the screens are better on the phone. people can do this in their pocket these days. cory: i want to figure out who is going to succeed. you could have the best product in the world in betamax and you are not going to win. when there is a marketplace, it is hard. eventually there was the stock exchange, but this took decades to happen. ebay has a lock on online auctions, despite some competitors like amazon. is there room for lots of different races like this or will everyone go to where everyone is? ryan: there are different spaces and niches, like amazon tv, and live streaming of video games. that is huge. it is massive. and both meerkat and periscope are new. who knows overtime, but it is so early. meerkat launched last month, periscope last week. cory: facebook knows who my friends are in i curate that by kicking people off and linkedin has a different graph of me, and twitter has a third graph of me. overlapping. instagram also. are their businesses, where people will have dozens of social graphs, or a couple of companies who owned that, like twitter or linkedin and facebook will own that? ryan: that is a good question. meerkat launched using twitter. i think the tv graph is great relevant to maybe a twitter graph, but it could be different, as well. the people you watch, the tv shows are different. cory: ryan hoover, thank you. "bloomberg west" will be right back. ♪ just because i'm away from my desk doesn't mean i'm not working. comcast business understands that. their wifi isn't just fast near the router. it's fast in the break room. fast in the conference room. fast in tom's office. fast in other tom's office. fast in the foyer [pronounced foy-yer] or is it foyer [pronounced foy-yay]? fast in the hallway. i feel like i've been here before. switch now and get the fastest wifi everywhere. comcast business. built for business. cory: "bloomberg west," where we focus on the future of technology and innovation. the headlines. the campaign for the next two k prime minister is underway, and prime minister david cameron the to the queen, marking the formal start. he said the leader of the opposition party, ed miliband is not fit to be prime minister. prime minister cameron: frankly i don't think ed miliband -- some people might say don't make this personal, but when it comes to who is prime minister, the personal is national. cory: miliband said businesses are concerned that cameron will take them out of the european union. u.s. consumer spending for february rose less than projected when adjusted for inflation, and spending declined for the first time in almost a year. it is part of the u.s. economy will find it hard to sustain momentum after the best quarter since 2006. colder temperatures and snow in the mideast and throughout the west. ebay's stuff is suing ticketmaster. they are being over mashers -- measures of unfairly blocking the sale of game tickets. there was a policy of canceling or threatening to cancel season tickets if they are sold anywhere else using ticketmaster. the number of listings on their site has fallen by 80% in the last year as a result of efforts to the resale. and dreamworks has a new animated movie, home, which is a hit, taking and $54 million, sales smashing expectations of just $31 million. this the best opening for them since madagascar are three in 2012. dreamworks may avoid a loss that some analysts had forecast when they expected a bomb for four of the past six movies that lost money. and a division to distribute music 2.5 million songs from bruno mars and the rolling stones to be streamed on alibaba app. there is also the situation of copyright infringement. a san francisco jury decided that one woman was not a victim of gender discrimination while at kleiner perkins investment firm, and she says it is a battle worth fighting. plaintiff: it has been worth it. cory: although she lost the trial, she did bring awareness of the issue to light, and joining us is a law professor is another guest. he specializes in william -- women's issues in the workplace. this case, as a journalist, i feel like -- i am sure that i know there is discrimination with guys like me dominating silicon valley particularly financial firms, but as a journalist, i feel like saying here, there is an example, but the jury clearly said this is not an example of that. what do you make of that? yes: the thing the jury was asked to vote on more specific dates and things that were boxed in so a referendum on her years at kleiner perkins and what the jury decided on what snippets of that, and doesn't make legal standard, and we have seen cases like this where the legal standard can differ from what the jury decides. there has been a lot of that most recently around ferguson and the i can't breathe in new york, and that is definitely something that does happen, and i can think that you can look at this as something of a learning experience and pick something to gain even if they do not win the case. cory: can i knowledge that there is racism and the horrible thing that happened in missouri but did not happen here? sarah: of course, of course just using that as an example where public opinion goes one way in public decision goes another. cory: re: can't remember this as a case that is important? i was surprised about the new york times. guests: i think it is a very important case. for example, i do think that going forward, you're going to have a honeypot like kleiner person -- kleiner perkins being able to have this policy, and not being able to have a situation where a woman is not invited on an important networking event like that's true the dinner. there were a lot of structural dispute here. also, kleiner perkins got lucky in that in some ways ellen was not an aesthetic plaintiff, but if she had been a different kind of plaintiff, if this had been a different kind of a job, for example a job where there were more clear-cut requirements, this could have gone very differently, and remember that the court ruled that kleiner perkins is potentially on the hook for over 140 million dollars of punitive damages. now they have dodged the bullet, but going forward, i think practices will be very, very different, both in venture capital and in tech more generally. cory: so we have all heard about this case, and the jurors were kind enough to speak of, and i want you to your but one of the jurors had they are after. check this out. juror: when you see comparable or similar feedback, meaning areas they need to improve in yes one gets promoted and is fast tracked, and the other is held back in a particular role then to me, it validated the claim as being discriminated against on the basis of gender. gender: it probably had more to do with her sales ability and her ability to get along with people, her personality. a lot of people can be analytically driven, which is what down she was, and that made her break the chief of staff rule, but we feel in the long run that that was not what her role was going to be based on the e-mail. cory: cell, sarah, there are the two sides to the case. but i wonder when you look at this, do you think this is the right issue and the wrong case? sarah: yes. it is pretty hard to listen to some of the stories and some of the other stories that have come out in the last years about women and tech. it is a little bit like the boiler room, the boilers club and so i think that this is an issue that is not going away. it affects almost every woman in venture capital who has stories. we talking about billion-dollar funds. cory: is it worth -- worse in finance or a business, not that finance is not the own thing? sarah: deals can take years to come to fruition, and even after the company for wishing, you know if they are successful or not, so during that time, you are really getting by on the perception of success, rather than a business where you have quarterly earnings that tell you whether or not you are doing a good job, so i think when can sometimes do better in an analog environment where they can print this is good as opposed to being able to throw out on a bus. cory: joan, do you think there will be another case like this or a class action against twitter or facebook on these issues, which can have a much wider reaching effect? joan: during the trial, there were two more musket fire against that companies. now, that may be a coincidence. i suspect it is not a coincidence. what we saw in this trial is that although there was a lot of evidence in favor of kleiner perkins, there was also very, very clear evidence of gender stereotype and specifically, the kind of gender stereotyping that is often encountered by asian-american women. for example, in a recent co-authored study, one of the findings was that asian-american women are often cited for being too passes, a word that came up in the kleiner perkins trial and that asian-american women walk a very, very narrow tightrope between being seen as too feminine to be competent, too passes, too quiet, but also too masculine to be likable. she was called both passive and demanding. that is pretty narrow, and there is a gender brian -- gender bias. i think it has changed the conversation in a permanent way. cory: joan williams, thank you, and, sara, thank you. "bloomberg west" will be right back. ♪ cory: i am cory johnson. this is "bloomberg west." ford brings back the lincoln continental, and there is the nail host of the daily show, but it is time to look at innovators working on seemingly unsolvable problems. this week, technology in medicine. surgeons have limited options when it comes to closing internal wounds during surgery, and our reporter traveled to a company that is working on giving surgeons were options with adhesive gels to seal and permanently lost tissues inside the body. >> inside is one of the harshest environment. >> it is extremely dynamic constantly expanding and contracting. >> a hurricane of blood inside the heart. reporter: of all the places you can perform an operation, the heart is probably one of the hardest. it is even harder when that heart is very small, like in children and an infant, 10,000 of which were higher open-heart or drink every year. if you want to repair a heart defect, you have to open it up and we expose the heart and a suture can cause a lot of damage. >> to try to do something to solve this problem, and so we went off and developed this adhesive that can work in the harshest environment in the body, inside a beating heart. reporter: in 2009, 18 at m.i.t. was asked to solve a problem. how can you repair a hole in the middle of the heart of a child without using ditches or staples? you were saying to create different kind of adhesive. what were you looking to create? what were some of the properties needed to have? >> a lot of materials react. the material that we developed is hydrophobic which means it can actually repel water or repel blood, so we can place this inside a beating heart, and what can happen if it will actually dark to infiltrate into the tissue, almost like a tissue velcro so it locks into the tissue, and then the heart expanding and contracting on the order of 60 times a minute, and so the materials have to be able to respond to that. reporter: why can you tell you little bit about what is your contraption is going to do? >> this is a mechanical tester. the patch we just heard with the glue and measured the situation that degenerates. reporter: you will get a reading of the level of june, as it were? >> exactly. he's this is two kilograms of force person or centimeter, and it is strong enough to remain in the heart. reporter: the top of the tissue is bent up. the glen meets to be strong, but it also needs to know when to get out of the way, and that is what makes this particularly impressive. the glue can work with the patient's own body to create an even better more permanent fix. >> what happens is at the material degrades, the patient's own tissue creates a bridge, and that's hillview hole, and then the glue is gone, and the patient has their own tissue that is feeling the whole. reporter: so besides working in the heart, there are other places's technology could go. can you tell me a little bit about that? >> there are things we can think about that we are exploring. for example, gluing two vessels together. we can also think about other places to use the adhesive. there are a lot of controls. >> before the biomedical company to translate this technology and we are determined to try to get this to patients as soon as we can. it is actually as will to be first and man testing later this year. reporter: they hope the widespread use of their product, besides making the company a lot of money, will lead to fewer invasive open surgeries, cutting down on recovery time for patients and reducing the risk of infections. >> the science is always to translate something and i think the most exciting moment when we are able to do it inside a beating heart in a lab -- of course, the moment where we had something that really affects the quality of life of a patient. cory: dallas r bloomberg reporter in this weeks edition of this segment, and a time now for headlines, bringing back the lincoln continental at work. the new lincoln sedan at the auto show this week. the ceo investing $2.5 million and he talked about the impact of a stronger u.s. dollar. eo: when the dollar is strong, that means the economy is strong, and this is the largest market, so that is good news for us. it does you wrote our competitive price -- it does he wrote our competitive price. -- erode our competitive price. cory: stealing digital from the so wrote marketplace. they were both investigating a website when the alleged thefts occurred, and he allegedly stole thousands of dollars of bitcoin while investigating so wrote. the feds have the option all bitcoin seized, and they had held three options so far. "bloomberg west" will be right back. ♪ cory: this is "bloomberg west" and i am cory johnson. and replacement for jon stewart, trevor noah and he joined as a future return last year and has been on the show exactly three times, but he is a veteran comic. he hosts his own program in his home country of south africa, and joining us is a senior producer of a video news network, and so, three times? that is crazy? guests: three times in a very short space of time. his debut with in 2014, so he is absolutely a newcomer. it is a bold choice for comedy central and viacom. a comedy background outside the daily show is sort of what helped him. cory: he has 2 million followers and is on instagram and youtube. this is a cliché, a digital native. veerrsan: he hosted his own comedy show in south africa when he was only 25 years old, so he has been doing this a while, and yet been in the social media game for a while. jon stewart is famously anti-twitter and antisocial media, so i think viacom made the right choice in going for a young person who is absolutely integrated and who will integrate social media more. he brings that. cory: i wonder if it is more a more global show. the comedy on the show is very with centric and u.s. focused. there are occasional references to the classic era and i wonder if those choked as here, and it becomes a more international kind of thing and less of a u.s. cultural response. versha: yes, that could work. former correspondent john oliver did a great job bringing his sort of outside british experience, to comment on the ludicrousness at times of american politics, so i think trevor noah with the able to give the same. comparing police brutality in the united states to the brutality that he saw under apartheid in south africa growing up so he has an international perspective and how he can relate that to what is going on today. it will definitely relate him to u.s. audiences a little bit more. cxory: actually, i have to take that back. i did not see that. i saw something online or on my computer. but the daily show has been one of the most inclusive -- they put all of this stuff up online, cataloging it extensively. is there a notion that this is the kind of thing we need to do to be more digital going forward? vers i think thath is thea: where they live, and that is on instagram in snapchat, so trevor know it is the embodiment of that and comedy central going forward is making a social media push for those new digital audiences. cory: it is also interesting the success john oliver has had on a different network, being hbo being digital. versha: yes, they are doing episodes. they will preview clips on twitter and have them. again, that is a way to keep your audience's interest, even when you are not on air every week. cory: versha, thank you very much and remember, you can get the latest on your phone, tablet, and at ♪ bloomberg.com. we will do tomorrow. -- we will see you tomorrow. ♪ >> from our studios in new york city, this is "charlie rose." charlie: welcome to the program. we begin with a terrible air crash in the else. here's the latest -- in the alps. here's the latest from cbs evening news. reporter: investigators turned up several doctors notes, excluding including one on the day of the crash. it supports the culinary assessment that lubi
-- 5.8%. a security incident at the nsa headquarters in maryland, two man reportedly dressed as women tried to ram the gate with their car, and police opened fire. one suspect was killed, the other hurt. the us the fbi does not believe they were terrorist attacks. and sergey lavrov has left the nuclear talks, and he says he will only return with a realistic understanding of the deal. there is tomorrow's self-imposed deadline. >> we are here because we believe in hell can be done. it is in everybody's interest that a deal does get done, but it has to be a deal that could bomb behind the reach of iran. there cannot be any compromise on that, so if we're going to get done, iran has to take a deep breath and make some tough decisions to ensure that those red lines can be met. cory: how fast to roll back sanctions and dispose of the already enriched iranian uranium and falling short on a deal with u.s. officials to clear up items after a bank was accused of laundering money while doing business with terrorist regimes. bank performs and the pace of change being cited as an adequate, according to two people familiar with the report. well, the music streaming service, tidal, was launched by jay-z. he bought it for millions in january. the latest entrant into the crowded main business. there are artists that owns stakes in it. and the national football league and the atlanta falcons have been fine for breaking the rules. one person was suspended after your games for sending text messages to the sidelines during the game, and the team was docked a pick after pumping in crowd noise during a game. and now, indiana legislators are looking to clarify these days's controversial religious freedom law, which has angered many in the community, allowing businesses to deny service to gay people based on the religious views of the business. speaking out in the tech community, apple ceo tim cook, and marc benioff, who has limited travel, and angie's list has withdrawn a proposal to expand the indianapolis headquarters. here is the ceo on the law. bill: it had nothing to do with creating jobs, nothing to do with educating children, nothing to do with attracting talent to the state of indiana. corey: governor pence defense the law that he signed. governor pence: is tolerance a two way street or not? there is a lot of talk about tolerance today having to do with people on the left, but here indiana steps forward to protect the constitutional rights and privileges of freedom of religion for people of faith and families of faith in our state, and this avalanche of intolerance has been poured on our state. it is just outrageous. cory: we were looking for businesses that would speak out in favor of the law and could not find any, but a representative of an lgbt tech company joins us now. this law has drawn a lot of -- i am surprised about the instant reaction from the tech community. what is different about this law and this time over the last year or so? guests: thank you so much for having me on. if you look back to arizona, they will be passing a bill very similar to this, which actually was vetoed, and it shows that the tech industry and many industries around the country and around the world just realized that this is discrimination in its most blatant form, and discriminating in business or those around the country is bad for business. tim cook said it in his op-ed in the fact that this coronation is bad for business, and quite frankly, i would turn around and ask governor patrick pence, why was a closed-door signing if he was truly feeling that this was a good law for the state of indiana? cory: said jerry joins us from bloomington, indiana, with a school of business, and i wonder there at the school, jerry, when you look at this, is there a sense -- when this was being discussed, that this would have a big impact in the global tech community, or is this a local issue? jerry: it has been perceived by many to be an issue in attracting tech businesses and keeping tech businesses in indiana. there have been a couple of cases in the last week that have stepped forward, changing plans. angie's list was going to build a $40 million facility involving over 1000 employees, and that seems to be on hold. salesforce has a major operation there, and they are talking about limiting flights to indiana and travel to indiana. so if more companies are of this sort that what to bring in people and technology and people who are looking for a free lifestyle to go with that, they could have some challenges in attracting and retaining those people. cory: i have been particularly amazed at the this role reaction from mark benioff of salesforce. he posted on facebook late last night, and in part, he wrote in response to this unjust legislation, we are reducing employee travel to indianapolis and canceling all marketing events that require customers to travel those that are impacted by the discriminatory environment and want to move out of indiana. jerry, to me, this is kind of unprecedented in modern times, the ceo of one of the biggest software companies in the world is saying i'm going to help people leave the state because of a law they just passed. jerry: well, that is certainly a strong statement and one that is getting a lot of attention both in government and in the private sector. there has been a lot of comment by businesses about the problems that this legislation is perceived to cause, and i say perceived because the legislation itself, the bill, is really unclear. it does not directly address anything having to do with groups that would be discriminated against or not. it basically sets forth judicial standards by which case cases would be judged if there is a conflict in rights, and, unfortunately, this legislation poses two basic types of freedom , freedom of religion and freedom from discrimination to potentially come to butting heads. i think the author wants to come out ahead when the legal profession. cory: they always win. chris wood, tim cook's response really quick, broadening this, let me read from his op-ed in the washington post. he said this is not a political issue or a religious issue. it is about how we treat each other as human beings. opposing discrimination takes courage. it is time for all of us to be courageous. this is the biggest company in the world by market cap, chris and it is run by a gay man. it is unusual for him to be such a leader and be so candid on this issue? chris: i think he realizes that the best time and place, it is important for him to be outspoken about this. last year, i was on "bloomberg west" last year talking about his announcement in alabama and coming out eventually as gay. it is really important for him to be a leader in his position talking about the importance each other in 18 and as human beings, and quite frankly, the lgbt community, each individual in the lgbt community is just as human as the next individual standing next to them, whether they identify as lgbt or not and at the end of the day, or business, what matters is that we get the job done, that we continue to produce technology that are changing lives each and every day, and i really feel that tim cook sees that. he realizes that coronation is extremely bad for business and that this law is really rationalizing injustice for so many, not just the lgbt community, but it is taking a direct hit at the lgbt community. cory: chris wood. we appreciate your time, thank you. up next, a streaming appd je rr, taking things by storm. some meerkatting, when we return. ♪ ♪ cory: coming up, meerkat and germanwings. it appears the copilot may crash the plane after having suicidal thoughts for years. >> he had at that time been in treatment of a psychotherapist because of what is documented as being suicidal at that time. cory: german authorities also created a homicide mission to determine whether or not andreas lubitz deliberately crashed the plane. 50 homicide detectives have been assigned to the case. and the group will look to unlock its next round of bailout money still needs a lot of work, i wanted to some officials who say the proposal is short on information and content. greece could run out of money within weeks without a new bailout, and the national football league making a separate business, granting operational controls for nfl on location. a new holding company will be providing unique fan access. all right. it is one of the most talked about apps, and we are talking that a live streaming app called meerkat, and it has raised $14 million. they broadcast live videos and comments to twitter. you cannot replay them, like snapchat, but here is a question. it has launched. it has raised money. it is a huge hit. their ceo, ben, joints need right now. congratulations. it is amazing attention to what you guys are doing. the app store numbers half volleyed off. what do you make of this? ben: it is not that early in our venture. we have been in this space for 2.5 years now. we have known success and failure as more. one thing that is very interesting to see about us is that it was actually able to unlock behavior of live streaming behavior, like people who would not live stream otherwise are now live streaming. cory: we are meerkating right now. holding your phone, and there we are on meerkat, since one to watch this kind of a broadcast while it is happening, what do they do? ben: once you go live, it is a lifestream published on twitter, and everyone who follows you get a push notification, and they can watch you. cory: and my twitter account or your twitter account, because our bow on there, and we can discuss? ben: yes, that will be shown on your twitter account. cory: you launched at sxsw right? ben: no, actually, it was just a side project. we had a product of live video and we closed that. it was maybe 400,000 users that we had, and then we shut it down and went to this exploratory mode when we said we're going to release a product every two months, and one of them was meerkat, and we put it on product hunt on february 27, and we did not plan to do anything like that. but the community was extremely supportive. cory: there is also this sort of search for the next big thing, because twitter was launched at sxsw, some people are looking for the next twitter. ben: twitter was out for nine months before sxsw, and there is a cultural readiness, a technological readiness. we do not look at it as kings or queens or anything. it is more about is the technology now -- it allows a different behavior that could be impactful in a meaningful way, right, and if we can allow people to participate, a large audience to participate in happening, by removing friction by going live, by removing friction from watching at different places in the world, and everyone can watch live screen from their pockets, basically, or stream live video from the phones in their pocket. that means that the cost to go live and to distribute to a large audience is literally zero now. cory: people commenting now as we look at the comments as they come across, but i also wonder instantly twitter announces they are going to pull out the rug from under you. but also twitter announcing a competitive product. is that a sign of success? ben: for the space, it is a sign of success. twitter was a launching pad. to be receptive, for people to receive us so well in the beginning, and obviously we understand twitter than the business decision it is making and it is also a good, good sign to see that the company -- it is a great product like twitter doing steps in this direction. cory: you and i will have a conversation on meerkat, and we appreciate your coming by, ben. we will be right back. ♪ cory: i am cory johnson, and this is "bloomberg west," and we just spoke to the ceo of meerkat, and a competitor about streaming video from camera straight to social media. yet they both survive? is there room for two? tell me. guest: big launch on product hunt. cory: to me, the launch of meerkat and twitter on top of it, pulling out the rug and not letting them make a social graph and then launching a competitive product, what do you make of that? ryan: it is interesting that they are entering the live streaming space at the same time. this happens frequently, not that it is twitter copying them or vice versa. it is a change of behavior or a change of technology. cory: what is the inspiration? is it face time or snapchat? ryan: people being willing to share themselves in public, and then, of course, technology. bandwidth. the screens are better on the phone. people can do this in their pocket these days. cory: i want to figure out who is going to succeed. you could have the best product in the world in betamax and you are not going to win. but i wonder, when there is a marketplace, it is hard. eventually, there was the stock exchange, but this took decades to happen. ebay has a lock on online auctions, despite some competitors like amazon. is there room for lots of different services like this, or will everyone go to where everyone is? ryan: there are different spaces and niches, like amazon tv, and live streaming of video games. that is huge. it is massive. and both meerkat and periscope are new. who knows overtime, but it is so early. meerkat launched last month, periscope last week. cory: facebook knows who my friends are, in i curate that by kicking people off, and linkedin has a different graph of me, and twitter has a third graph of me. overlapping. instagram also. are their businesses, where people will have dozens of social graphs, or a couple of companies who own that, like twitter or linkedin and facebook will own that? ryan: that is a good question. meerkat launched using twitter. i think the tv graph is great relevant to maybe a twitter graph, but it could be different, as well. the people you watch, the tv shows are different. cory: ryan hoover, thank you. "bloomberg west" will be right back. ♪ around here, we're all about fast. that's why xfinity is perfect for me. with millions of wifi hotspots all over the place - including one right here at the shop - now we can stream all things fast and furious. you've done it again, carlos! ♪ with the fastest in-home wifi and millions of hotspots xfinity is perfect for people who love fast. don't miss furious 7 in theaters april 3rd. ♪ cory: "bloomberg west," where we focus on the future of technology and innovation. the headlines. the campaign for the next two k -- u.k. prime minister is underway, and prime minister david cameron the to the queen marking the formal start. he said the leader of the opposition party, ed miliband is not fit to be prime minister. prime minister cameron: frankly, i don't think ed miliband -- has it. some people might say don't make this personal, but when it comes to who is prime minister, the personal is national. cory: miliband said businesses are concerned that cameron will take them out of the european union. u.s. consumer spending for february rose less than projected when adjusted for inflation, and spending declined for the first time in almost a year. readings indicate part of the u.s. economy will find it hard to sustain momentum after the best quarter since 2006. colder temperatures and snow in the mideast and throughout the west. ebay's stubhub is suing ticketmaster. they are being over mashers -- measures of unfairly blocking the sale of game tickets. there was a policy of canceling or threatening to cancel season tickets if they are sold anywhere else using ticketmaster. the number of listings on their site has fallen by 80% in the last year as a result of efforts to limit resale. and dreamworks has a new animated movie, home, which is a hit, taking and $54 million, sales smashing expectations of just $31 million. this the best opening for them since madagascar are three in 2012. a strong debut means dreamworks may avoid a loss that some analysts had forecast when they expected a bomb for four of the past six movies that lost money. and a division to distribute music, 2.5 million songs from bruno mars and the rolling stones to be streamed on alibaba app. there is also the situation of copyright infringement. a san francisco jury decided that one woman was not a victim of gender discrimination while at kleiner perkins investment firm, and she says it is a battle worth fighting. plaintiff: if i have helped to level the playing field, it has been worth it. cory: although she lost the trial, she did bring awareness of the issue to light, and joining us is a law professor is another guest. she specializes in women's issues in the workplace. this case, as a journalist, i feel like -- i am sure that i know there is discrimination with guys like me dominating silicon valley, particularly financial firms, but as a journalist, i feel like saying here, there is an example, but the jury clearly said this is not an example of that. what do you make of that? guest: the thing the jury was asked to vote on more specific dates and things that were boxed in, so a referendum on her years at kleiner perkins, and what the jury decided on what snippets of that, and doesn't make legal standard, and we have seen cases like this where the legal standard can differ from what the jury decides. there has been a lot of that most recently around ferguson and the i can't breathe in new york, and that is definitely something that does happen, and i can think that you can look at this as something of a learning experience and pick something to gain even if they do not win the case. cory: can i aknowledge that there is racism and the horrible thing that happened in missouri but did not happen here? sarah: of course, of course, just using that as an example where public opinion goes one way in public decision goes another. cory: can we remember this as a case that is important? i was surprised about the new york times. guests: i think it is a very important case. for example, i do think that going forward, you're going to have a honeypot like kleiner perkins being able to have this policy, and not being able to have a situation where a woman is not invited on an important networking event like the ski trip or the dinner. there were a lot of structural dispute here. also, kleiner perkins got lucky in that in some ways ellen was not an aesthetic plaintiff, but if she had been a different kind of plaintiff, if this had been a different kind of a job, for example, a job where there were more clear-cut requirements, this could have gone very differently, and remember that the court ruled that kleiner perkins is potentially on the hook for over 140 million dollars of punitive damages. now they have dodged the bullet, but going forward, i think practices will be very, very different, both in venture capital and in tech more generally. cory: so we have all heard about this case, and the jurors were kind enough to speak of, and i want you to your but one of the jurors had they are after. check this out. juror: when you see comparable or similar feedback, meaning areas they need to improve in, one gets promoted and is fast tracked, and the other is held back in a particular role, then to me, it validated the claim as being discriminated against on the basis of gender. >> it probably had more to do with her sales ability and her ability to get along with people, her personality. a lot of people can be analytically driven, which is what down she was, and that made her break the chief of staff rule, but we feel in the long run that that was not what her role was going to be based on the e-mail. cory: so, sarah, there are the two sides to the case. but i wonder when you look at this, do you think this is the right issue and the wrong case? sarah: yes. it is pretty hard to listen to some of the stories and some of the other stories that have come out in the last years about women in tech and not think that something is amiss. it is a little bit like the boiler room, the boilers club, and so i think that this is an issue that is not going away. it affects almost every woman in venture capital who has stories. we talking about billion-dollar funds. cory: is it worse in finance or a business, not that finance is not the own thing? sarah: deals can take years to come to fruition, and even after it comes to fruition, you know if they are successful or not, so during that time, you are really getting by on the perception of success, rather than a business where you have quarterly earnings that tell you whether or not you are doing a good job, so i think when can sometimes do better in an analog -- analytical environment where they can print this is good as opposed to being able to throw out on a bus. cory: joan, do you think there will be another case like this or a class action against twitter or facebook on these issues, which can have a much wider reaching effect? joan: during the trial, there were two more musket fire -- lawsuits filed against tech companies. now, that may be a coincidence. i suspect it is not a coincidence. what we saw in this trial is that although there was a lot of evidence in favor of kleiner perkins, there was also very very clear evidence of gender stereotype, and specifically the kind of gender stereotyping that is often encountered by asian-american women. for example, in a recent co-authored study, one of the findings was that asian-american women are often cited for being too passes, a word that came up -- too passive, a word that often came up in the kleiner perkins trial, and that asian-american women walk a very, very narrow tightrope between being seen as too feminine to be competent, too passes, too quiet, but also too masculine to be likable. she was called both passive and demanding. that is a pretty narrow type -- tightrope. i think it has changed the conversation in a permanent way. cory: joan williams, thank you and, sara, thank you. "bloomberg west" will be right back. ♪ ♪ cory: i am cory johnson. this is "bloomberg west." ford brings back the lincoln continental, and there is the nail host of the daily show, but it is time to look at innovators working on seemingly unsolvable problems. this week, technology in medicine. surgeons have limited options when it comes to closing internal wounds during surgery and our reporter traveled to a company that is working on giving surgeons were options with adhesive gels to seal and permanently lost tissues inside -- bond tissues inside the body. >> inside is one of the harshest environment. >> it is extremely dynamic constantly expanding and contracting. >> a hurricane of blood inside the heart. reporter: of all the places you can perform an operation, the heart is probably one of the hardest. it is even harder when that heart is very small, like in children and an infant, 10,000 of which were higher open-heart or drink every year. if you want to repair a heart defect, you have to open it up and we expose the heart, and a suture can cause a lot of damage. >> we are really compelled to try to do something to solve this problem, and so we went off and developed this adhesive that can work in the harshest environment in the body, inside a beating heart. reporter: in 2009, a team at m.i.t. was asked to solve a problem. how can you repair a hole in the middle of the heart of a child without using ditches or staples? you were saying to create different kind of adhesive. what were you looking to create? what were some of the properties needed to have? >> a lot of materials react. the material that we developed is hydrophobic, which means it can actually repel water or repel blood, so we can place this inside a beating heart, and what can happen if it will actually dark to infiltrate into the tissue, almost like a tissue velcro, so it locks into the tissue, and then the heart expanding and contracting on the order of 60 times a minute, and so the materials have to be able to respond to that. reporter: why can you tell you little bit about what is your contraption is going to do? >> this is a mechanical tester. the patch we just heard with the -- cured with the glue and measured the situation that the degrees can generate. reporter: you will get a reading of the level of june, as it were? >> exactly. he's this is two kilograms of force person or centimeter, and it is strong enough to remain in the heart. reporter: the top of the tissue is bent up. the glue needs to be strong, but it also needs to know when to get out of the way, and that is what makes this particularly impressive. the glue can work with the patient's own body to create an even better more permanent fix. >> what happens is at the material degrades, the patient's own tissue creates a bridge, and that's hillview hole, and then the glue is gone, and the patient has their own tissue that is feeling the whole. reporter: so besides working in the heart, there are other places's technology could go. can you tell me a little bit about that? >> there are things we can think about that we are exploring. for example, gluing two vessels together. we can also think about other places to use the adhesive. there are a lot of controls. >> before the biomedical company to translate this technology and we are determined to try to get this to patients as soon as we can. it is actually scheduled to be first in man testing later this year. reporter: they hope the widespread use of their product, besides making the company a lot of money, will lead to fewer invasive open surgeries, cutting down on recovery time for patients and reducing the risk of infections. >> the science is always to translate something, and i think the most exciting moment when we are able to do it inside a beating heart in a live animal -- of course, the moment where we had something that really affects the quality of life of a patient. cory: that was bloomberg reporter in this weeks edition of this segment, and a time now for headlines, bringing back the lincoln continental at work. the new lincoln sedan at the auto show this week. the ceo investing $2.5 million and he talked about the impact of a stronger u.s. dollar. mark fields: when the dollar is strong, that means the economy is strong, and this is the largest market, so that is good news for us. it does erode our competitive price. cory: two former agents charged with stealing digital information from the so wrote marketplace. they were both investigating a website when the alleged thefts occurred, and he allegedly stole thousands of dollars of bitcoin while investigating so wrote. the feds have the option all bitcoin seized, and they had held three options so far. "bloomberg west" will be right back. ♪ cory: this is "bloomberg west," and i am cory johnson. replacement for jon stewart, trevor noah, and he joined as a contributor last year and has been on the show exactly three times, but he is a veteran comic. he hosts his own program in his home country of south africa and joining us is a senior producer of a video news network, and so, three times? that is crazy? guests: three times in a very short space of time. his debut with in 2014, so he is absolutely a newcomer. it is a bold choice for comedy central and viacom. a comedy background outside the daily show is sort of what helped him. cory: he has 2 million followers and is on instagram and youtube. this is a cliche, a digital native. versan: he hosted his own comedy show in south africa when he was only 25 years old, so he has been doing this a while, and yet been in the social media game for a while. jon stewart is famously anti-twitter and antisocial media, so i think viacom made the right choice in going for a young person who is absolutely integrated and who will integrate social media more. he brings that. cory: i wonder if it is more a more global show. the comedy on the show is very u.s.-centric and u.s. focused. there are occasional references to the classic era, and i wonder if those jokes disappear, and it becomes a more international kind of thing and less of a u.s. cultural response. versha: yes, that could work. former correspondent john oliver did a great job bringing his sort of outside british experience, to comment on the ludicrousness at times of american politics, so i think trevor noah will be able to give the same. comparing police brutality in the united states to the brutality that he saw under apartheid in south africa growing up, so he has an international perspective and how he can relate that to what is going on today. it will definitely relate him to u.s. audiences a little bit more. cory: actually, i have to take that back. i did not see that. i saw something online or on my computer. but the daily show has been one of the most inclusive -- they put all of this stuff up online, cataloging it extensively. is there a notion that this is the kind of thing we need to do to be more digital going forward? >> where they live, and that is on instagram in snapchat, so trevor know it is the embodiment of that, and comedy central going forward is making a social media push for those new digital audiences. cory: it is also interesting the success john oliver has had on a different network, being hbo being digital. versha: yes, they are doing web exclusive episodes. they will preview clips on twitter and have them. again, that is a way to keep your audience's interest, even when you are not on air every week. cory: versha, thank you very much and remember, you can get the latest on your phone tablet, and at bloomberg.com. we will see you tomorrow. ♪ >> the following is a paid program. the following is a paid advertisement for omega xl. >> my name is larry king. a few years ago, i had to have open heart surgery. when i recovered, i established a cardiac foundation to help people like me avoid heart problems with proper foods medication, and a healthy li
workplace? i talked to a partner and kliner's defense attorney in this case. this is her first interview since the verdict. >> great to be done. it's great to be back in my office. great for kliner to have prevailed on everything. >> did you have a sense? the jurors were stunned when they walked out and saw all the cameras there. >> it was overwhelming. just a tidal wave of reporters. occasionally people would post tweets on my facebook page or email me. i followed a few people but i didn't have a sense of the whole scope of it until the end. >> what made this case unusual? it's got an unusual amount of coverage. supposedly having an impact on silicon valley. >> it's not going to happen. cases don't change industries. that's not what they're about and not what they do. but this case was the right issue at the right time. wrong case, wrong forum. very hot issue obviously in silicon valley and people feel passionately about it. but the media coverage made everything different. >> how so? >> you could feel it. you could hear comments in the audience the jurors were distracteded by the clacking of the key boords. you come out and have cameras in your faces. it was a very different experience for a trial lawyer. >> did that help you? >> it didn't help. it's a distraction you have to look beyond, keep your eyes on the prize. and that's what we did. you're always worried what is the press reporting if the jurors are reading it. but this jury seemed to be very careful about following the judge's admonitions. >> one of the things i've read and heard about you is that you're very aware of what the jury is doing at all moments in the courtroom. and when you're walking out or when the jury is walking out. >> you have to watch the jury. you have to see if they're having a bad reaction to you. that's important. but i wouldn't say staring at them all the time. it's just important for a trial lawyer to try and read how you're coming across and how they're reacting to you. >> do you believe there's a culttur of sexual discrimination in silicon valley in venture capital? >> i don't see it. certainly not in the clients i work with. i'm not sure they would hire me if there were. i suppose you could be really cynical and say that's why they hired me. but i don't see it. i hear it all the time about big law and i'm a senior woman partner in a big law firm. and i don't see it there, either. so part of my job to find out when it's not there. maybe that prejudices me in a way. >> but it sounds like you're saying it's not there. >> i don't think it's there. >> you're right. the narrative has been the opposite. >> definitely. the numbers are bad. that has to change. and when numbers increase, cultures change. >> so they say venture women capitalists of women were down. i've talked to lawyers who say why isn't it 50/50? >> because there weren't women in the pipeline. and as the professor, who is an expert in the trial testified, venture firms have been shrinking in the past few years. so that's going to hippeder hiring. what cleaner did made it number one in the nation. but there aren't women entrepreneurs. there aren't women in science and teck. and unless the culture fixes that, unless we put women in math and science in ways that we're not doing now, the numbers are not going to change. >> so ellen pao lost her case but did she ultimately win by brings these issues to life? >> the thing it is jury were asked to rule on were incredibly narrow. specific dates that were boxed in. and so what we heard during the trial was sort of a referendum on pao's years. but what the jury was deciding on were snippets of that and does it meet very particular legal standards. and i think we've seen other cases where public opinion can differ from what the jury decides. there's been a lot of that particularly most recently around ferguson and the i can't breathe in new york. so that's definitely something that does happen. and i do think that you can still look at something as a learning experience and take something to gain insight from even if they don't win the case. >> can i acnong that there's racism and that what happened in the horrible things that happened in missouri happened in missouri but they didn't happen here? >> of course. i was just using that as an example in terms of where public opinion goes one way and the court decision goes another. >> when you look at this case, is this case -- we're going to remember this as an important case? i was surprised to see it in the cover of the "new york times." >> i think it was a very important case. for example, i certaintly don't think that going forward you're going to have a honey pot like kliner perkins not able to find its eeo policy. >> do you think? >> i think. yeah. and not have a situation where a woman isn't invited on an important networking event like that ski trip or the dinner. there were a lot of factual disputes here. also kliner perkins got lucky in that in some ways ellen pao was not as sympathetic a plaintiff. but if she had been a different kind of plaintiff, if this had been a different kind of a job, for example, a job where there were more clear cut requirements this could have gone very differently. and remember that the court ruled that kliner perkins was potentially on the hook for over $140 million of punitive damages. now, they dodged the bullet. but going forward, i think practice is going to be very, very different both in gender -- in venture capital and in tech more generally. >> so we've all read a lot about the case. we know the case a little bit. the people who knew it maybe the best the jurors were kind enough to speak to us right after the verdict was announced. check this out. >> when you see comparable or similar feedback, meaning areas that they need to improve y, any, one gets promoted and moves the fast track and the other is held back in a the particular role. then to me it served the -- it validated the claim of being discriminated against on the basis of gender. >> based on testimony we heard, it probably had more to do with per salesability and her ability to get along with people. her personality. and a lot of people can be very analytically driven which it sounds that's what she was. that's what made her great in the chief of staff role. but we felt in the long run that probably that wasn't what her role was going to be just based on the reviews and the e-mails that we saw. >> so there was the two sides of the case. and the latter side is what carried the day there. but when you look at this, do you think that this is just the right issue the wrong case? >> yeah. i think that it's pretty hard to listen to some of those stories, and as well as some of the other stories that came out over the past couple of years and women in tech and not think that's something's not amiss. so i do think this is an issue that's not going away. it's something that almost every woman who works in venture capital has experience of. >> is it worse in finance or business? not that finance isn't business but it's its own peculiar thing. >> i think that one of the thing about finance is alternative assets is deals can take years to come to fruition. and even after they come to fruition who knows if they're successful or not. so during that time you are based on your reputation and who you know and the perception of success rather than in business you have quarterly earnings. so i think women can do better in an analytical environment where they can prove that they're good as opposed to needing to grow out on a strip club bus or whatever it may be. >> when we look at this case do you think that there will be another case like this? we've heard about class action suits on these same issues. this could have a much wider reaching effect. >> i mean, during the trial there were two more lawsuits filed against tech companies. that may be a coincidence. i suspect it's not. what we saw in this trial is that although there was a lot of evidence that cut in favor of kliner perkins there was also very, very clear evidence of jeppeder stereo typing and -- gender stereotyping and the kind that's encountered byation-american women. for example, in a recent study one of the findings that we had is that asian american women are often faulted for being too passive. a word that was literally came up in the kliner perkins trial. and that asian american women walk a very, very narrow tight rope between being seen as too femen to be competent, too passive, too quiet, she was called. but also too masculine to be likeable. she was called both fassive and demanding. that's -- passive and demanding. that's a narrow type rope. and this is really a gender training to the world. so i think it has changed the conversation in a permanent way. >> we'll be right back. >> indiana's new so-called religious freadm law has become a huge issue in the technology and business industry. after the law tech companies spoke out in protest. more than a dozen tech leaders signing a letter. sales force is limiting employee travel to the state as are some city and state governments. cloud era pulled out of a big data conference. i spoke with mike olson just hours after indiana governor mike pence vowed to fix the law. >> i think it's encouraging but we would like to see exactly what the legislature and the administration intend. >> what is it about this law that offended you guys so much that you very quickly moved to speak out against it? >> several things. first of all equality is a constitutional right. very simple, very direct. obthat basis this law was a problem. not just on that basis though. we believe that equal rights for all citizens including lgbt citizens are fundamental. that it is good for business. and that it is the morally right thing for us to stand up for that class of citizens as for others. there were lots of problems with the indiana law. we're happy to see the governor begin to address some of them and we're looking forward to seeing more. >> i was really struck, i think all of us have been struck by how the tech community in particular have struck out making a lot of loud noises. but your company, yelp apple, really getting out there. angie's list is an indiana based company really quickly speaking out about this. why do you think tech companies have taken the lead here? >> i think mark did a great service in focusing attention on this law. this is different from the laws in many other states. that's not to say those laws don't have problems but this one is especially egregious. by focusing attention and by giving the tech community, which swings a lot of revenue, which has a lot of influence among businesses in indiana, he gave us the chance to affect the course of this law. and, i hope, to lead to its revision or repeal. >> mark, it certainly did that. also, tim cook, also the biggest tech company, talk about all the other states that have similar laws. have you gone through and thought about what this means to the other states? have you put yourself in position where you're going to have to speak out or decide whether those laws are acceptable to do business in those other states that have laws? >> it's a good question but it's not just a cloud era question. i think one of the services that mark and tim and the tech community provided here was to focus attention on all of those other laws. there are some substantial differences and we haven't read all of the statutes and detail. but i think now that there is a national conversation under way about what is permissible, what is written into legislation, and what that ought to mean for businesses like ours. i think it's a very helpful development and i look forward to continuing that conversation and to finding more ways that cloud era can be supportive of rights of all people. >> i want to play a sound byte from mike pence as well because he talked for quite a bit and had some interesting things to say. >> i don't believe for a minute that it was the intention of the general assembly to create a license to discriminated or a right to deny services to gays lesbians or anyone else in this state. and it certainly wasn't my intent. >> do you believe that that it wasn't his intent? >> look, i'm not going to call into question what the governor intended. what i will do is highlight what the governor and the legislation did. and that is wrote a law that legalized discrimination against classes that ought to be protected, that certainly are in federal law and in other states. the state of indiana lacked those protections. if this outcry leads the state to write reasonable protections into its code then i think we've accomplished something pretty great. and we look forward to seeing what the governor does in that regard. >> before we congratulate ourselves for just the tech community, even in indiana we saw a huge protest. the indiana star indianapolis star the newspaper there in indiana not known as a bags of liberalition really powerful full cover saying fix this now. religious freedom restoration act, taken a really powerful stance on this. i wonder what this means, though, if editorials can do what editorials do. but i wonder if the voice of business and the almighty dollar speaks louder when businesses such as yours mike, decide to pull business away from that state. >> look, a couple things. first of all, i believe that most people in indiana believe in equality and want civil rights to be enforced for everyone. i believe that to be true. when we pulled out of the conference we weren't directly harming the governor or the legislature. we were, frankly, taking a economic pulse on a bunch of business leaders who may not well share the views and opinions of the legislature of the administration. we harmed ourselves. we had an opportunity to go and gain a bunch of prospective customers and others and that was costly for us. we believed that it was the right thing to do. by encouraging moderate voices in indiana to speak up in support of civil rights, i think we've had some effect as a broad community in driving the dialogue there in the right direction. again, i am really pleased to hear some encouraging words out of the governor this morning and i really look forward to those words turning into action that makes a difference. >> mike olson, cloud era's chief strategy officer. we'll be right back. >> this is the best of bloomberg west. so what if target executives have been able to identify the card hackers? the security company allows companies to track everything connected to a network and executives can check and evpbsht down these end points in just 15 seconds. they raised $15 million to follow the firm's initial investment of $90. the board member is joining the board also joined me here in the studio. >> the first thing that's really unique is the instant response across your network. like how many devices are connected to your internet? most people go one, two. >> if i think about it i've probably got a couple dozen. >> but you don't know the number. but imagine a global company. how fast can you figure out which ones are connected, what they're running? that's what titanium lets you do in 15 seconds. so you have a million different cash registers, laptops, figure out what's going on on all of them in 15 seconds. >> is this a big data solution? it's been a focus of your firm. but all that information just all those ip addresses. the example of this company, the lights bious are ip controlled. >> that's what's so fascinating. because in the world of security what matters the most is getting the most up-to-date used? it would take a lot of data bases. it sort of says to every computer look to the guy right and left of you and we'll send it all back. >> the buddy system. >> it's like a buddy system. >> so i get that. what -- how does that respond to the types of hacks we're seeing now? because the types of hacks are changing dramatically we're seeing these stathe sponsored hacks like north korea. >> that's the most interesting thing about the breaches or infiltrations today is that they're multistep often involve what looks like legitimate use of something that's going on and they involve a combination of programs and networking. >> like unpacked a little bit. we've seen a lot of cases where someone gets in the and stays there for months or even more than a year. >> even how they get in. sometimes they have legitimate credentials and they plant a program over here which talks to a program over here. but what we let you do is have this complete view of information what's going on and how, which machines might be sending a certain type of packet, which machines are running a certain type of program. but all instantly. so when you do understand a breach is given on, look for a pattern, like look for these programs or look for this traffic. but you have no way of knowing at all. >> i don't understand why the ip stant. if some of the attacks are slow why does instantaneous detection matter if these acts take months and years? >> a great question. today what you see is the breaches are using these known infiltrations. but in certain patterns and in certain arrangements around the company and they do take time. the problem is you can't figure out they're going on and once you do, you need to shut it down instantly. that's where the instantaneous response really comes in. so the way to think is these breaches, you learn about i just got a memo from a security company telling me to look for these things. the problem is today there's no way to do that. so these memos pile up. indicators of compromise. they're literally in the inbox of every security professional. and it takes days to go through each one. with tainium it takes seconds. the existing tools are all about trying to be predictive and block. those play a role but most of the time you can't predict what's going on in the network and you have to react and respond. >> we'll be right back. >> you're watching the best of bloomberg west. bringing you this weekend's best. go daddy went public this week. the web-hosting company is well known for its sexy commercials. it also raised the $460 million when it started trading wednesday. shares surging right out of the gate. here's the ceo talking about the company's target customer. >> we helped somebody take their idea on line and run their business as a digital entity. and that's our business. >> so public again go daddy sporting a market capital about $4 billion but also losing a lot of money. for more perspective on this top business that go daddy is in i talked to one of the biggest competitors. at the publicly traded endurance international group. >> just depends on what segment of the market you actually compete in. certainly in the dome main element of the marketplace the product is pretty similar no matter who you buy it from. if you expand the landscape out to beyond doe mape the web presence to include mobile aps, in pockets it is very competitive but tail winds in this market have been pretty amazing. just the number of small businesses wanting to come on line, wanting to use these services. there's a real see change in this market i would say in the last five years even. and so that's benefiting everybody including ourselves and the folks that -- and other players as well. >> what is that sea change? when i read the per spect tuss for go daddy it seems they're desktop and laptop they acknowledge mobile but it doesn't seem to be their focus. >> really the pivotal point happened when social got really popular, when you think about a small business even somebody that doesn't have a website doesn't have a web presence maybe doesn't even have a do maine when their customers ask them where they can find them on line that started the movement of these small businesses that were off line starting to think about i actually need to be online, i need to interface with my customers, talk to them on line, which meant they had to go out and get a web presence. i think that's been the real crux of it is these offline businesses wanting to come on line because it actually helps drive value. what we've done a little different is we don't lead with dome maines or branding. we market almost entirely on line and we start customers out with a web presence. so our profile is different. our bottom line cash flows that we were talking about earlier is very comparable to go daddy but our top line isn't quite as high because we start with the higher priced product with better margins. but in terms of whether the strategy worked or not, clearly they have a great scaled business that is growing nicely. pivoting now to sort of the next set of state evolution is a pretty start strategy i think. >> so the next do main has been kind of the carrot at the end of the stick. the bold seasons have been, hey, everyone who owns the.com name coca-cola.com and coca-cola.net they're going to want xyz and berlin or club or whatever. but when i look at the results of some of your competitors, for example, web.com, they have not benefited from that. that movement hasn't really happened. is that a shimmer out there? is that business ever going to pick up? >> i think over time this is going to get better. this is going to create some good tail wind in the market. really in the market where we don't necessarily compete, what's been happening is there's a real supply side imbalance where if you go and look for a particular do main eight out of ten times you're going to find that's not available. somebody already bought it. you have to go to the secondary market and pay a additional dollars for people to get that name. >> you have companies out there like web.com out there buying before the customer wants it incurring the cost. are the customers going to want it is the question. >> so i think what's been happening is that let's say you had a choice of cory.com for $5,000 and cory.abc or whatever it is for a much cheaper price. the bet that the market is making is that over time people will start to gravitate more towards these other new tles coming out because the pricing is much more comparable. it's still shaking out. all of the tle's out there today are very nichee. those are the ones out through the auctioning process. what's going to happen over the course of this year and next year are more generic ones are going to come out. where people say i can be part of that.web revolution coming up. >> we'll be right back. >> bmw is counting on technology to help it keeps its lead against rivals in the luxury market. matt caught up with the ceo on the floor of the new york auto show. >> i'm here and i thought it would be interesting to talk about the high-tech i cars i-line that they have out. you happen to drive the i-3. when you told me that i couldn't believe it. you said it's got the dna in it. >> absolutely. the way it drives it's so agile, it's light, it's great as far as acceleration is concerned. that's all you need for a commute. this is what the car is meant for. >> so the i-3 is an all electric car. you can get it with a range extender but that doesn't drive the axel. it's completely green in that sense. >> it is. it's green in the sense it's emission free. but we think it's also very important that the whole production is very sustainable. we start producing the carbon fiber in places like washington with hydro power. we just use water to produce it. we don't have any electricity outside of our own plant necessary. then the car is built with wind power so the whole production cycle, we also use about half of the water we would use otherwise so the production is much more sustainable, much more emission free than anybody else can produce a car, which we think as far as the carbon footprint is concerned, really important if you talk about sustainability of an automobile. >> i have yet to drive the yoinch-3 myself. i had -- i-3 myself. i have had the pleasure of driving the i-8 it's amazing. the grip is incredible the way it lays down power is so smooth and linear. and this is a concept that i think your competitors are finally catching on to. the fact that you can have this hybrid green power train and still have so much power. i mean, it's almost like you feel whatever the opposite of green is but you're still doing something good for the environment. >> absolutely. it's the best of two worlds. the stunning looks of the super car. it's the performance of the super car. you can even sit four people -- at least on a shorter journey -- and you have more than 70 miles to the gallon. this is something that hasn't been accomplished by anybody else. again, it's the sustainable production that really makes the car stick out as far as sustainability is concerned. >> what do you think is the future of bmw power trains? are we going to eventually see electric power alongside gasoline and deesing engines? >> we will. we will have plug-in hybrids for all the major models and that's the future we think that you will be able to do both. you drive electically in the city but use the conventional drive train for the freeways. >> what about the future of connectivity? i think the i-drive is the best system as far as into tainment systems. but this incar tech is being more important especially in sin col valley. where is bmw heading with that? >> it's not only in silicon valley. people are interested in getting more connectivity to get information at their fingertips that they want to have while they're driving, but it's also about having some little helpers like self-parking. whenever it's not so much fun to drive a bmp mw, electronics kick in and help you. that's what it's all about. >> obviously the ultimate driving machine is the slogan i grew up with. and when i get behind the wheel of a bmw i want to drive myself. but are we going to see the day when there's an autonomous bmw? >> maybe if you're really in a bad traffic situation you will be able to engage autonomous driving because it's no fun. you can then review e-mails or read a book, whatever you want. but as soon as you want to drive again, you decide yourself it should always support the driver but don't dominate the driver. >> we'll be right back. >> one of the most talked about app debuts in recent memoryry. mercath. four weeks after launching it raised $14 million in funding and quite quickly. the app lets users live broadcast videos and comments from their smart phone to twitter. they can't replay or save the video it's snap chat meets facetime all that and more. and the best is though could they already be behind it? it's fallen from number 140 to 523 last week. i put that very question to their ceo ben ruben. >> it's not that early in our venture actually we've been in the live video space for more than 2-1/2 years now. we've known success and failures before. one thing that is very interesting to see about mere cat is that it was actually able to unlock behavior of life-streaming behavior. like people that wouldn't live streem otherwise are now live streaming. >> so we're mere cathing right now as we're having this conversation. is that your phone? >> yes. >> and there we are. and so if people want to watch this kind of a broad dast while it's happening what do they do? they log on to -- >> the moment you go live, it's live stream published on twitter. everyone who follows you gets a notification. and people can watch you from web or from phone. >> and they can go to my twitter account or your twitter account? >> yes. if you are commenting on that, that will be shown on your twitter account. yes, that's correct. >> so talking about how that business works. right when you launched, first you launched south by southwest? >> no. we launched at product con actually. it was just a side project. the company, we had a product of live video and we closed that. it was maybe 400,000 users we had. we shut it down and went to this exploratory mode when we said we're going to release a very simple product every two months. and one of them was meerkat. and we put it on product hunt. on the 27th of february. and that was within -- we didn't plan to do anything but the community was extremely supportive. >> there's also the sort of search for the next big thing. twitter was first launched at south by southwest. so ever since people have been trying to find the next twitter. >> it was out nine months. but i think there is a cultural readiness, there is a technological readiness. >> crown the next king? >> no. we don't look at it as kings or queens or anything. it's more about is the technology now allows a different behavior that could be impactful in a meaningful way. and if we can allow people to participate, a large audience to participate in happening by removing friction from going live, by removing friction by watching in different places in the world, and everyone can watch live stream from their pockets basically, or stream line video from their phones in their pocket that means that the cost to go live and to distribute to a large audience is literally zero now. >> i wonder what people are commenting right now as we look at the comments as they come across. but i also wonder instantly twitter announces they're going to kind of pull the rug out from you in being able to map the social graph but announcing a competitive produck. is that a sign of success to you? >> yes. definitely for the space. for us twitter was always thing pad. we didn't expect to be this like -- to be so much, to be receptive -- like for people to receive us so well in the beginning. and obviously we understand twitter and the business decision that it's making. and it's also a good sign to see that the company that is very smart with a great product like twitter is doing steps in this direction. >> for more on the battle between me nch rkat and twitter's peri scope i spoke with ryan hoover. >> they launch or product time. >> so to me the launch of me erkat and twitter is on top of it not letting everyone gravitate to them, what do you make of that? >> it's interesting that many others are in this live streaming space at the same time. this happens frequently. it's not that twitter is copying them or vice versa. and it's just these, the change of behavior and technology is i think forcing people to look more at live streaming as an actual medium. >> what are the inspirations? fatetime or snap chat? >> i believe it has created this behavior of people being willing to share their face and themselves in public. and then there's of course technology band with, the screens are better on phones. everyone has this live streaming device in their pocket nowadays. >> when i look at businesses and try to figure out -- you can have the best idea in the world. you're not going to win. >> right. >> but when you look at businesses that are marketplaces versus when they're -- >> when there's a marketplace it's hard for there to be competitors. e bay has a lock on online auctions still despite the efforts of some well heeled competitors like amazon. is there room for lots of different services like this or will everyone go to where everyone is because that's who you're sharing with? >> there's certainly a lot of room and there's different niches that appear. >> it's huge. rarned it's huge. both are extremely early. who knows how they will converge or diverge over time. their audience mace be different in the long run but it's so early. >> i guess i wonder is the existing social graph like facebook knows who my friends are and i cure yate that by kicking people off or meeting new people. linked in has a different graph of me. twitter a third graph. but there's a lot of overlapping. but are -- is there an expectations of these businesses that people will have dozens of social graphs or that the couple of companies who own that will own everything on top of that? >> that's a good question. meerkat launched using twitter's. i think the tv graph is very relevant to maybe a twitter but it could be different as well. the people you watch on tv are different. >> that's ryan hoover. we'll be right back. >> over the holiday weekend chances are you might be drinking some wine. it's easter after all. vino is an interesting young business. even has a data base of over 300,000 restaurant wine lists with reviews. >> we think that people should drink what they like. and a lot of cases people don't know what they like. >> as long as they're not driving. >> exactly. >> i don't want them to be in their car right now. >> please wait until later. so people might know that i like this particular wine but they don't know what it is. so with us you can actually see what types do you like what do you not like and so on. you learn more about your own taste. trr way it works is with the smart phone you snap a picture of the label. what happens on the back end? >> it ships that picture to our serves and compares to our massive data base of wine images. we have 130 million pictures of wine labels. compared to that few seconds comes back to you with a rating review, everything. and if your friends have the wine cory had this wine, rated two stars, did not like it, whatever we have on your social network. or back to this discovery. it's so hard the experience of going to a wine store and buying wine is fairly unique in retail where the retailer has so much influence over the purchasers maybe more than any other industry. does this start to change that model a little bit? >> i think it's going to move people towards where they start learning more about themselves. when you talk region, another thing is actually restaurants. we built this wine list scanner. we take a photo of the wine list itself. we go through every single line and put a rateling which makes the experience a lot easier. >> so i look at the wine list, say i don't know what to get here. the staff is laughing. but it literally rates it on the phone? >> yeah. we take the picture and put the rating right next to every single wine which helps you make a better decision. some are great but they don't know you as well as we do. >> your revenue model is what? >> we're going to help you find your next wine so we're going to point you towards retailers that sell this wine. it's sort of an e commerce place. we're never going to ship wine directly. we'll have sellers. >> will you get paid that way or piece of the purchase? >> it could be both actually. exactly right. >> i would take a percentage. >> yes. when cory's buying we definitely want a percent. >> but is that how the business is going to work? >> yes. kind of more of a paper click in the beginning but percentage in the long term. >> and finally, where do you see your biggest growth? what's the demographic? >> there's no doubt about now. 30 million say that regular wine drinkers. and they have a different way of thinking because they are more open to trying new things. they're used to going to rest raupt checking yelp before. now they're checking the wine before drinking a bottle of wine. >> that does it for this weekend's edition of the best of bloomberg west. we'll see you next week. >> the following is a paid program. the views do not represent bloomberg, it's affiliates or employees. >> the following is a paid presentation from worx. >> nothing offends these members of the mount panesis -- their weapon of choice the all new worx
rights of women in the workplace? i talked to a partner and kleiner's defense attorney in this case. this is her first interview since the verdict. >> great to be done. it's great to be back in my office. great for kleiner to have prevailed on everything. >> did you have a sense? the jurors were stunned when they walked out and saw all the cameras there. >> it was overwhelming. just a tidal wave of reporters. occasionally people would post tweets on my facebook page or email me. i followed a few people but i didn't have a sense of the whole scope of it until the end. >> what made this case unusual? it's got an unusual amount of coverage. supposedly having an impact on silicon valley. >> it's not going to happen. cases don't change industries. that's not what they're about and not what they do. but this case was the right issue at the right time. wrong case, wrong forum. very hot issue obviously in silicon valley and people feel passionately about it. but the media coverage made everything different. >> how so? >> you could feel it. you could hear comments in the audience, the jurors were distracted by the clacking of the key boords. you come out and have cameras in your faces. it was a very different experience for a trial lawyer. >> did that help you? >> it didn't help. it's a distraction you have to look beyond, keep your eyes on the prize. and that's what we did. you're always worried what is the press reporting if the jurors are reading it. but this jury seemed to be very careful about following the judge's admonitions. cory: one of the things i've ahead and heard about you is that you're very aware of what the jury is doing at all moments in the courtroom. and when you're walking out or when the jury is walking out. >> you have to watch the jury. you have to see if they're having a bad reaction to you. that's important. but i wouldn't say staring at them all the time. it's just important for a trial lawyer to try and read how you're coming across and how they're reacting to you. cory: do you believe there is a culture of sexual discrimination in silicon valley in venture capital? >> i don't see it. certainly not in the clients i work with. i'm not sure they would hire me if there were. i suppose you could be really cynical and say that's why they hired me. but i don't see it. i hear it all the time about big law and i'm a senior woman partner in a big law firm. and i don't see it there, either. so part of my job to find out when it's not there. maybe that prejudices me in a way. cory: but it sounds like you're saying it's not there. >> i don't think it's there. cory: you're right. the narrative has been the opposite. >> definitely. the numbers are bad. that has to change. and when numbers increase, cultures change. cory: so they say venture capitalist women were down. i've talked to lawyers who say why isn't it 50/50? >> because there weren't women in the pipeline. and as the professor, who is an expert in the trial testified, venture firms have been shrinking in the past few years. so that's going to hinder hiring. what cliner did was -- kleiner did was made it number one in the nation. but there aren't women entrepreneurs. there aren't women in science and teck. and unless the culture fixes that, unless we put women in math and science in ways that we're not doing now, the numbers are not going to change. cory: so ellen pao lost her case, but did she ultimately win by brings these issues to life? >> the thing it is jury were asked to rule on were incredibly narrow. specific dates that were boxed in. and so what we heard during the trial was sort of a referendum on pao's years. but what the jury was deciding on were snippets of that and does it meet very particular legal standards. and i think we've seen other cases where public opinion can differ from what the jury decides. there's been a lot of that particularly most recently around ferguson and the i can't breathe in new york. so that's definitely something that does happen. and i do think that you can still look at something as a learning experience and take something to gain insight from even if they don't win the case. cory: can i acknowledge that there's racism and that what happened in the horrible things that happened in missouri happened in missouri but they didn't happen here? >> of course. i was just using that as an example in terms of where public opinion goes one way and the court decision goes another. cory: when you look at this case, is this case -- we're going to remember this as an important case? i was surprised to see it in the cover of the "new york times." >> i think it was a very important case. for example, i certaintly don't think that going forward you're going to have a honey pot like kleiner perkins not able to find its eeo policy. >> do you think? >> i think. yeah. and not have a situation where a woman isn't invited on an important networking event like that ski trip or the dinner. there were a lot of factual disputes here. also, kleiner perkins got lucky in that in some ways ellen pao was not as sympathetic a plaintiff. but if she had been a different kind of plaintiff, if this had been a different kind of a job for example, a job where there were more clear cut requirements this could have gone very differently. and remember that the court ruled that kleiner perkins was potentially on the hook for over $140 million of punitive damages. now, they dodged the bullet. but going forward, i think practice is going to be very very different both in gender -- in venture capital and in tech more generally. cory: so we have all read a lot about this case. we know the case a little bit. the people who knew it maybe the best, the jurors were kind enough to speak to us right after the verdict was announced. check this out. >> when you see comparable or similar feedback, meaning areas that they need to improve, any one gets promoted and moves the fast track and the other is held back in a the particular role. then to me it served the -- it validated the claim of being discriminated against on the basis of gender. >> based on testimony we heard it probably had more to do with her sales ability and her ability to get along with people. her personality. and a lot of people can be very analytically driven which it sounds that's what she was. that's what made her great in the chief of staff role. but we felt in the long run that probably that wasn't what her role was going to be just based on the reviews and the e-mails that we saw. cory: so there was two sides to the case and the latter side is what carried the day there. but when you look at this, do you think that this is just the right issue the wrong case? >> yeah. i think that it's pretty hard to listen to some of those stories, and as well as some of the other stories that came out over the past couple of years and women in tech and not think that's something's not amiss. it's a little bit like the boiler rooms, the boys clubs of the 1980's and 1990's. so i do think this is an issue that's not going away. it's something that almost every woman who works in venture capital has experience of. cory: is it worse in finance or business? not that finance isn't business but it's its own peculiar thing. >> i think that one of the thing about finance is alternative assets is deals can take years to come to fruition. and even after they come to fruition who knows if they're successful or not. so during that time you are really getting by based on your reputation and who you know and the perception of success rather than in business you have quarterly earnings. that tell you whether or not you're doing a good job. so i think women can do better in an analytical environment where they can prove that they're good as opposed to needing to grow out on a strip club bus or whatever it may be. cory: when we look at this case, do you think that there will be another case like this? we've heard about class action suits on these same issues. this could have a much wider reaching effect. >> i mean, during the trial there were two more lawsuits filed against tech companies. that may be a coincidence. i suspect it's not. what we saw in this trial is that although there was a lot of evidence that cut in favor of kleiner perkins, there was also very, very clear evidence of gender stereotyping and specifically the kind of gender stereotyping that is often encountered by asian-american women. for example, in a recent study one of the findings that we had is that asian american women are often faulted for being too passive. a word that was literally came up in the kleiner perkins trial. and that asian american women walk a very, very narrow tight rope between being seen as too feminine to be competent, too passive, too quiet, she was called. but also too masculine to be likeable. she was called both passive and demanding. that's a pretty narrow tight rope. and this is really a gender training to the world. so i think it has changed the conversation in a permanent way. cory: we'll be right back. ♪ cory: this is the best of "bloomberg west." i'm cory johnson. indiana's so-called religious freadm law has become a huge issue in the technology and business industry. after the law tech companies spoke out in protest. more than a dozen tech leaders signing a letter calling for more protections for lgbt people. sales force is limiting employee travel to the state as are some city and state governments. cloud era pulled out of a big data conference. i spoke with mike olson just hours after indiana governor mike pence vowed to fix the law. to prohibit discrimination. >> i think it's encouraging but we would like to see exactly what the legislature and the administration intend. cory: what is it about this law that offended you guys so much that you very quickly moved to speak out against it? >> several things. first of all, equality is a constitutional right. very simple, very direct. on that basis, this law was a problem. not just on that basis though. we believe that equal rights for all citizens, including lgbt citizens are fundamental. that it is good for business. and that it is the morally right thing for us to stand up for that class of citizens as for others. there were lots of problems with the indiana law. we're happy to see the governor begin to address some of them and we're looking forward to seeing more. cory: i was really struck -- i think all of us have been struck by how the tech community in particular have struck out making a lot of loud noises. but your company, yelp, apple, really getting out there. angie's list is an indiana based company really quickly speaking out about this. why do you think tech companies have taken the lead here? >> i think mark did a great service in focusing attention on this law. this is different from the laws in many other states. that's not to say those laws don't have problems but this one is especially egregious. by focusing attention and by giving the tech community, which swings a lot of revenue, which has a lot of influence among businesses in indiana, he gave us the chance to affect the course of this law. and, i hope, to lead to its revision or repeal. >> mark, it certainly did that. also, tim cook, also the biggest tech company, talk about all the other states that have similar laws. have you gone through and thought about what this means to the other states? have you put yourself in position where you're going to have to speak out or decide whether those laws are acceptable to do business in those other states that have laws? >> it's a good question but it's not just a cloud era question. i think one of the services that mark and tim and the tech community provided here was to focus attention on all of those other laws. there are some substantial differences and we haven't read all of the statutes and detail. but i think now that there is a national conversation under way about what is permissible, what is written into legislation, and what that ought to mean for businesses like ours. i think it's a very helpful development and i look forward to continuing that conversation and to finding more ways that cloud era can be supportive of rights of all people. cory: i want to play a sound byte from mike pence as well because he talked for quite a bit and had some interesting things to say. check this out. >> i don't believe for a minute that it was the intention of the general assembly to create a license to discriminated or a right to deny services to gays lesbians or anyone else in this state. and it certainly wasn't my intent. cory: do you believe that mike that it wasn't his intent? >> look, i'm not going to call into question what the governor intended. what i will do is highlight what the governor and the legislation did. and that is wrote a law that legalized discrimination against classes that ought to be protected, that certainly are in federal law and in other states. the state of indiana lacked those protections. if this outcry leads the state to write reasonable protections into its code then i think we've accomplished something pretty great. and we look forward to seeing what the governor does in that regard. cory: before we congratulate ourselves for just the tech community, even in indiana we saw a huge protest. the indiana star, indianapolis star the newspaper there in indiana not known as a bastion of liberalism really taking a powerful stance on this. i wonder what this means, though, if editorials can do what editorials do. but i wonder if the voice of business and the almighty dollar speaks louder when businesses such as yours, mike, decide to pull business away from that state. >> look, a couple things. first of all, i believe that most people in indiana believe in equality and want civil rights to be enforced for everyone. i believe that to be true. when we pulled out of the conference we weren't directly harming the governor or the legislature. we were, frankly, taking a -- an economic toll on a whole bunch of business leaders who may not well share the views and opinions of the legislature of the administration. we harmed ourselves. we had an opportunity to go and gain a bunch of prospective customers and others and that was costly for us. we believed that it was the right thing to do. by encouraging moderate voices in indiana to speak up in support of civil rights, i think we've had some effect as a broad community in driving the dialogue there in the right direction. again, i am really pleased to hear some encouraging words out of the governor this morning and i really look forward to those words turning into action that makes a difference. cory: mike olson, cloud era's chief strategy officer. we'll be right back. cory: i'm cory johnson. this is the best of "bloomberg west." so what if target executives have been able to identify the card hackers? the security company allows companies to track everything connected to a network and executives can check and evpbsht -- and even shut down these end points in just 15 seconds. they raised $15 million to follow the firm's initial investment of $90. the board member is joining the board also joined me here in the studio. >> the first thing that's really unique is the instant response across your network. like how many devices are connected to your internet? most people go one, two. cory: if i think about it, i've probably got a couple dozen. >> but you don't know the number. but imagine a global company. how fast can you figure out which ones are connected, what they're running? what versions of everything? that's what titanium lets you do in 15 seconds. so you have a million different cash registers, laptops, figure out what's going on on all of them in 15 seconds. cory: is this a big data solution? it's been a focus of your firm. but all that information just all those ip addresses. the example of this company, the lights above us are ip controlled. >> that's what's so fascinating. because in the world of security what matters the most is getting the most up to date information. is making is that over time people will start to gravitate more towards these other new tles coming out because the pricing is much more comparable. it's still shaking out. all of the tle's out there today are very nichee. those are the ones out through the auctioning process. cory: does it work in the same way as the spiders that do the web searches? they ping different parts over the internet and collect different information? >> the way that the tools used to work and they would go ask all of the computers all at once, what is going on and wait for them to answer. it would take a lot of special hardware. look to the guy to the right of you and to the left of you and find out what is going on there. cory: a buddy system. let's link arms. i get that. that is fascinating. the types of hacks are changing dramatically. we're seeing state-sponsored hacks like the sony hack by north korea. >> they are multi-stepped. they often involve something that looks legitimate and involve a combinags of programs and networking. cory: we have seen a lot of case where is someone gets into the network and says there for months or even a year. >> right. then they plant program over here that talks to a program over here and starts to collect information and sends it. what it lets you do is let's you this information of what is going on in your network and which machines are sending information out over the network. when you understand that a breach is going on you're often given a pattern. look for these three programs on different machines. but you have no way of knowing at all. cory: i don't get it. if some of these hacks are slow why does it matter if -- >> it is a great question. today what you see, the breaches are using these known infiltrations but certain patterns or arrangements around the company and they take time. the problem is you can't figure out they are going on. once you figure out something is happening, you need to shut it down. the way to think of it, you learn about i just got a memo from one of the security companies telling me to look for these things on my network. the problem is there is no way to do that. they are called indicators or compromise. they are literally in the inbox of every security professional. it literally takes days to go through each one. tanium takes seconds. those play a role but most of the time you can't predict what is going on in the network and you have to react and respond. nick:: the best of "bloomberg west" will be right back. . . just because i'm away from my desk doesn't mean i'm not working. comcast business understands that. their wifi isn't just fast near the router. it's fast in the break room. fast in the conference room. fast in tom's office. fast in other tom's office. fast in the foyer [pronounced foy-yer] or is it foyer [pronounced foy-yay]? fast in the hallway. i feel like i've been here before. switch now and get the fastest wifi everywhere. comcast business. built for business. ♪ cory: you are watching the best of "bloomberg was," where we focus on the best of innovation and technology. this web hosting company godaddy is known for its sexy commercials featuring danica patrick. here is go daddy's ceo blake irving talking about the company's target customer. blake: we help some of you take their idea online and run there does -- run their business of a digital entity, and that is our business. cory: so public again godaddy sporting $4 billion, but also lost money last year. for more perspective on this tough business, i talked to one of the biggest competitors. >> it depends on the domain of the marketplace, the product is similar no matter who you buy from. if you expand the landscape out beyond the web presence to include mobile app web building, it is competitive, but tell wins in this market have been pretty amazing. a number of small businesses wanted to come online, want to use these services. there is a real seachange in this market. i would say over the last five years even, so that is benefiting everybody, including ourselves and the folks over at godaddy and other places. cory: yeah. so what is that seachange? when i read the process -- the perspective sat -- the prospectus at godaddy -- hari: the pivotal happens when social got really popular. when you think of small business, even somebody who does not have a web presence or even a domain, when their customers start asking them where exactly they can find them online, that really started this sort of movement of these small businesses that were off-line starting to think about hey, i need to be online, i need to be able to talk to them online which meant they had to go out and start getting a web presence. i think that has been the real crux of it is these off-line businesses wanted to come online because it drives value for their business. what we have done somewhat difference is we do not leave with branding or off-line marketing. we market almost entirely online and we art customers out with a web presence so our profile is different. our bottom line cash flow is very comparable to godaddy, but our top line is not as high because we start with a higher price point. whether the strategy worked or not, clearly they have a great skill business that is growing nicely. the pivoting notch of the next stage of evolution to get more people into additional products is a pretty smart strategy, i think. cory: the next on domain name has been a carrot at the end of the stick, everyone who owns the dot com name cocacola.com and cocacola.net, they will run out and want cocacola.berlin or whatever. at that movement is not really happened. is that a shimmer out there, is that business ever going to pick up? hari: overtime this is going to get better and create tailwind in the market because really in the domain market where we do not necessarily compete what has been happening is a real supply-side imbalance where if you go in and look for a particular domain eight out of 10 times you will find that is not available. somebody has already bought it, you have to go to the secondary market and pay a lot of additional dollars to be able to get that domain. cory: there are companies like web.com buying the domain for the customer wants it, incurring the cost. will the customer wanted? hari: when you have a choice of cory.com for $5,000 or cory.abc or cory.xyz for a much better price committee that the market is making his over time people will gravitate toward these newer tle's coming out because the price is more comparable. it is ill shaking out. all of the tle's out there today are still very niche. those are the ones out through the auctioning process. what is going to happen over the course of this year and next year are more generic ones are going to come out. like dot web that will be a popular one where people will say i can be part of that dot web revolution coming up. cory: that was hari ravichandran of endurance international. the death of "bloomberg west" will be right back. ♪ cory: this is the best of "bloomberg west." i'm cory johnson. bmw is counting on technology to help it keep its lead against rivals like audi and mercedes in the luxury market. caught up with the ceo ludwig village on the floor of the new york auto show. matt: i'm here and i thought it would be interesting to talk about the high-tech i cars i-line that they have out. you happen to drive the i-3. when you told me that i couldn't believe it. you said it's got the dna in it. ludwig: absolutely. that is why i drive it. the way it drives it's so agile it's light, it's great as far as acceleration is concerned. that's all you need for a commute. this is what the car is meant for. matt: so the i-3 is an all electric car. you can get it with a range extender but that doesn't drive the axel. it's completely green in that sense. ludwig: it is. it's green in the sense it's emission free. but we think it's also very important that the whole production is very sustainable. we start producing the carbon fiber in places like washington washing with hydro power. we just use water to produce it. we don't have any electricity outside of our own plant necessary. then the car is built in germany with wind power, so the whole production cycle, we also use about half of the water we would use otherwise, so the production is much more sustainable, much more emission-free than anybody else can produce a car, which we think as far as the carbon footprint is concerned, really important if you talk about sustainability of an automobile. matt: i have yet to drive the i-3 myself. i have had the pleasure of driving the i-8, and it is shockingly amazing. the grip is incredible, the way it lays down power is so smooth and linear. and this is a concept that i think your competitors are finally catching on to. the fact that you can have this hybrid green power train and still have so much power. i mean, it's almost like you feel whatever the opposite of green is, but you're still doing something good for the environment. ludwig: absolutely. it's the best of two worlds. the stunning looks of the super car. it's the performance of the super car. you can even sit four people -- at least on a shorter journey -- and you have more than 70 miles to the gallon. this is something that hasn't been accomplished by anybody else. again, it's the sustainable production method that really makes the car stick out as far as sustainability is concerned. matt: what do you think is the future of bmw power trains? in your regular come in the 3 series come in the 5 series, are we going to see electric power alongside gasoline and diesel engines? norbert: we will. we will have plug-in hybrids for all the major models, and that's the future we think that you will be able to do both. you drive electrically in the city, but use the conventional drive train for the freeways. matt: what about the future of connectivity? i think the i-drive is the best system as far as infotainment systems. but this in-car tech is being more important especially in silicon valley. where is bmw heading with that? norbert: it's not only in ludwig: it is not only in silicon valley. people are interested in getting more connectivity to get information at their fingertips that they want to have while they're driving, but it's also about having some little helpers like self-parking. whenever it's not so much fun to drive a bmp, electronics kick in and help you. that's what it's all about. matt: obviously the ultimate driving machine is the slogan i grew up with. and when i get behind the wheel of a bmw i want to drive myself. but are we going to see the day when there's an autonomous bmw? ludwig: maybe if you're really in a bad traffic situation you will be able to engage autonomous driving because it's no fun. you can then review e-mails or read a book, whatever you want. but as soon as you want to drive again, you decide yourself it should always support the driver but don't dominate the driver. cory: that was our matt miller with bmw's north american ceo. the best of "bloomberg west" will be right back. ♪ cory: this is the best of "bloomberg west." i'm cory johnson. it is one of the most talked about app debuts in recent memory. we are talking about the live streaming app meerkat. four weeks after launching, it raised $14 million in funding and quite quickly. the app lets users live broadcast videos and comments from their smart phone to twitter. they can't replay or save the video. it is snapchat meets facetime all that and more. and the best is though could they already be behind it? it's fallen from number 140 to 523 last week. i put that very question to meerkat's ceo ben rubin. ben: it's not that early in our venture. actually we've been in the live video space for more than 2-1/2 years now. we've known success and failures before. one thing that is very interesting to see about meerkat is that it was actually able to unlock behavior of live-streaming behavior. like people that wouldn't live stream otherwise are now live streaming. cory: so we're meerkating right now as we're having this conversation. is that your phone? ben: yes. cory: and there we are. and so if people want to watch this kind of a broadcast while it's happening, what do they do? they log on to -- ben: the moment you go live, it is live-stream published on twitter. everyone who follows you gets a notification. and people can watch you from web or from phone. cory: and they can go to my twitter account or your twitter account? ben: yes. if you are commenting on that, that will be shown on your twitter account. yes, that's correct. cory: so talking about how that business works. right when you launched, first you launched that sxsw right? ben: no. we launched at product con actually. it was just a side project. the company -- we had a product of live video and we closed that. it was maybe 400,000 users we had. we shut it down and went to this exploratory mode when we said we're going to release a very simple product every two months. and one of them was meerkat. the first thing that we had. we had like six experience. the first thing that we had was meerkat. and we put it on product hunt on the 27th of february. and we did not plan to put it at south by, but the community was extremely supportive. cory: there's also the sort of search for the next big thing. twitter was first launched at sxsw. so ever since, people have been trying to find the next twitter. ben: it was out nine months. before sxsw. but i think there is a cultural readiness, there is a technological readiness. cory: crown the next king? ben: no. we don't look at it as kings or queens or anything. it's more about -- is the technology now allows a different behavior that could be impactful in a meaningful way? right? and if we can allow people to participate, a large audience to participate in happening by removing friction from going live, by removing friction by watching in different places in the world, and everyone can watch live stream from their pockets basically, or stream live video from their phones in their pocket, that means that the cost to go live and to distribute to a large audience is literally zero now. cory: i wonder what people are commenting right now as we look at the comments as they come across. but i also wonder, instantly twitter announces they're going to kind of pull the rug out from you in being able to map the social graph on top of whatever that social graph is, but also twitter announcing a competitive product. is that a sign of success to you? ben: yes. definitely for the space. for us, twitter was always thing a launching pad. we didn't expect to be this like -- to be so much, to be receptive -- like for people to receive us so well in the beginning. and obviously we understand twitter and the business decision that it's making. and it's also a good, good sign to see that the company that is very smart with a great product like twitter is doing steps in this direction. cory: that was meerkat ceo ben rubin. for more on the battle between meerkat and twitter's periscope, i spoke with product hunt's ryan hoover. ryan: they launched at product hunt. cory: so to me the launch of meerkat and twitter is on top of it not letting everyone gravitate to them, what do you make of that? ryan: it is interesting that many others are in this live streaming space at the same time. this happens frequently. it's not that twitter is copying them or vice versa. and it's just these, the change of behavior and technology is i think forcing people to look more at live streaming as an actual medium. cory: what are the inspirations? facetime or snapchat? ryan i believe it has created : this behavior of people being willing to share their face and themselves in public. and then there's of course technology, bandwidth, the screens are better on phones. everyone has this live streaming device in their pocket nowadays. cory: when i look at businesses and try to figure out -- you can have the best idea in the world. you're not going to win. ryan: right. cory: but when you look at businesses that are marketplaces versus when they're -- the new york stock exchange, it took decades to happen. ebay has a lock on online auctions still despite the efforts of some well heeled competitors like amazon. is there room for lots of different services like this, or will everyone go to where everyone is because that's who you're sharing with? ryan there's certainly a lot of : room and there's different niches that appear. twitch tv, which was purchased by amazon recently -- cory: it is huge. ryan: yes, it is massive. both are extremely early. who knows how they will converge or diverge over time. their audience mace be different in the long run but it's so early. meerkat launched months ago, meerkat periscope last week. cory: i guess i wonder, is the existing social graph like facebook knows who my friends are and i curate that by kicking people off or meeting new people. linkedin has a different graph of me. twitter a third graph. but there's a lot of overlapping. but are -- is there an expectations of these businesses that people will have dozens of social graphs or that the couple of companies who own that will own everything on top of that? brian that's a good question. : meerkat launched using twitter's graph. and they use the follow graph and other things. i think the tv graph is very relevant to maybe a twitter but it could be different as well. the people you watch on tv are different. cory: that's product hunt's ryan hoover. we'll be right back. ♪ cory: this is the best of "bloomberg west." i'm cory johnson. over the holiday weekend chances are you might be drinking some wine. it's easter after all. vino is an interesting young business. it lets users catalog and purchase their favorite wine. even has a data base of over 300,000 restaurant wine lists with reviews. we got the details from -- >> we think that people should drink what they like. and a lot of cases people don't know what they like. cory: as long as they're not driving. heini: exactly. cory: i don't want them to be in their car right now. heini: please wait until later. so people might know that i like this particular wine but they don't know what it is. so with us you can actually see what types do you like what do you not like and so on. you learn more about your own taste. the way it works is with the smart phone you snap a picture of the label. what happens on the back end? heini: it ships that picture to our serves and compares to our massive data base of wine images. we have 130 million pictures of wine labels. compared to that few seconds comes back to you with a rating, review, everything. and if your friends have the wine, cory had this wine, rated two stars, did not like it whatever we have on your social network. cory: back to this discovery. it's so hard the experience of going to a wine store and buying wine is fairly unique in retail where the retailer has so much influence over the purchasers, maybe more than any other industry. does this start to change that model a little bit? heini: i think it's going to move people towards where they start learning more about themselves. when you talk about retail another thing is actually restaurants. we built this wine list scanner. we take a photo of the wine list itself. we go through every single line and put a rating, which makes the experience a lot easier. cory: so i look at the wine list, say i don't know what to get here. the staff is laughing. but it literally rates it on the phone? heini: yeah. we take the picture and put the rating right next to every single wine, which helps you make a better decision. some are great but they don't know you as well as vino knows you. cory: your revenue model is what? heini: we're going to help you find your next wine so we're going to point you towards retailers that sell this wine. it's sort of an e-commerce place. we're never going to ship wine directly. we'll have sellers. cory: will you get paid that way or piece of the purchase? heini: it could be both actually. exactly right. cory: i would take a percentage. heini: yes. when cory's buying we definitely want a percent. cory: but is that how the business is going to work? heini: yes. kind of more of a paper click in the beginning but percentage in the long term. cory: and finally, where do you see your biggest growth? what's the demographic? heini: there's no doubt about the millenials are coming in now. 30 million say that regular wine drinkers. and they have a different way of thinking because they are more open to trying new things. they're used to going to restaurants and checking yelp before. cory: we will see you next week. ryan chilcote: what began in crimea is now playing out in eastern ukraine. >> this is utter destruction. i mean, i have been in demolition sites, war zones. i have never seen anything like this. but the outcome here is far less certain. we are going to stay low because we just heard a burst of gunfire. war has returned to europe. right on the outskirts of donetsk, and as you can hear there is a significant battle underway. it is west versus east. and it is slav versus slav. we have come to the front line s and gone into the mines. this is not a good place to go if
i talked to a partner and kleiner's defense attorney in this case. this is her first interview since the verdict. lynn: great to be done. it's great to be back in my office. great for kleiner to have prevailed on everything. cory: did you have a sense? during the trial, how much it was being followed the jurors , were stunned when they walked out and saw all the cameras there. lynn: it was overwhelming. just a tidal wave of reporters. occasionally people would post tweets on my facebook page or email me. i followed a few people but i didn't have a sense of the whole scope of it until the end. cory: what made this case unusual? it's got an unusual amount of coverage. an unusual amount of -- it was supposedly having an unusual impact on silicon valley. lynn: it's not going to happen. cases don't change industries. that's not what they're about and not what they do. but this case was the right issue at the right time. wrong case, wrong forum. very hot issue obviously in silicon valley and people feel passionately about it. but the media coverage made everything different. cory: how so? lynn: you could feel it. you could hear comments in the audience, the jurors were distracteded by the clacking of the keyboords. you come out and have cameras in your faces. it was a very different experience for a trial lawyer. cory: did that help you? lynn: it didn't help. it's a distraction you have to look beyond, keep your eyes on the prize. and that's what we did. you're always worried what is the press reporting if the jurors are reading it. but this jury seemed to be very careful about following the judge's admonitions. cory: one of the things i've read and heard about you is that you're very aware of what the jury is doing at all moments in the courtroom. and when you're walking out or when the jury is walking out. lynn: you have to watch the jury. you have to see if they're having a bad reaction to you. that's important. but i wouldn't say staring at them all the time. it's just important for a trial lawyer to try and read how you're coming across and how they're reacting to you. cory: do you believe there's a culture of sexual discrimination in silicon valley in venture capital? lynn: i don't see it. certainly not in the clients i work with. i'm not sure they would hire me if there were. i suppose you could be really cynical and say that's why they hired me. but i don't see it. i hear it all the time about big law and i'm a senior woman partner in a big law firm. and i don't see it there either. so part of my job to find out when it's not there. maybe that prejudices me in a way. cory: but it sounds like you're saying it's not there. lynn: i don't think it's there. cory: the narrative has been the opposite. lynn: definitely. the numbers are bad. that has to change. and when numbers increase, cultures change. cory: so they say venture women capitalists of women were down. i've talked to lawyers who say why isn't it 50/50? lynn: because there weren't women in the pipeline. and as the professor, who is an expert in the trial testified, venture firms have been shrinking in the past few years. so that's going to hippeder -- hinder hiring. what kleiner did made it number one in the nation. but there aren't women entrepreneurs. there aren't women in science and tech. and unless the culture fixes that, unless we put women in math and science in ways that we're not doing now, the numbers are not going to change. cory: so ellen pao lost her case but did she ultimately win by brings these issues to life? >> the things the jury were asked to rule on were incredibly narrow, specific dates that were boxed in. and so what we heard during the trial was sort of a referendum on pao's years. but what the jury was deciding on were snippets of that and does it meet very particular legal standards. and i think we've seen other cases where public opinion can differ from what the jury decides. there's been a lot of that particularly most recently around ferguson and the "i can't breathe" in new york. so that's definitely something that does happen. and i do think that you can still look at something as a learning experience and take something to gain insight from even if they don't win the case. cory: can i knowledge that there's racism and that what happened in the horrible things that happened in missouri happened in missouri but they didn't happen here? sarah of course. : i was just using that as an example in terms of where public opinion goes one way and the court decision goes another. cory when you look at this case, : is this case -- we're going to remember this as an important case? i was surprised to see it in the cover of the "new york times." joan: i was not. i think it was a very important case. for example, i certaintly don't think that going forward you're going to have a honey pot like kleiner perkins not able to find its eeo policy. cory do you think? :joan i think. : yeah. and not have a situation where a woman isn't invited on an important networking event like that ski trip or the dinner. there were a lot of factual disputes here. also, kleiner perkins got lucky in that in some ways ellen pao was not as sympathetic a plaintiff. but if she had been a different kind of plaintiff, if this had been a different kind of a job for example, a job where there were more clear-cut requirements, this could have gone very differently. and remember that the court ruled that kleiner perkins was potentially on the hook for over $140 million of punitive damages. now, they dodged the bullet. but going forward, i think practice is going to be very very different both in gender -- in venture capital and in tech more generally. cory so we've all read a lot : about the case. we know the case a little bit. the people who knew it maybe the best, the jurors, were kind enough to speak to us right after the verdict was announced. check this out. juror: when you see comparable or similar feedback, meaning areas that they need to improve yet one gets promoted and moves to the fast track and the other is held back in a particular role, then to me it served the -- it validated the claim of being discriminated against on the basis of gender. juror based on testimony we : heard, it probably had more to do with person ability -- per sonability and her ability to get along with people. her personality. and a lot of people can be very analytically driven which it sounds that's what she was. that's what made her great in the chief of staff role. but we felt in the long run that probably that wasn't what her role was going to be just based on the reviews and the e-mails that we saw. cory so there was the two sides : of the case. and the latter side is what carried the day there. but when you look at this, do you think that this is just the right issue the wrong case? sara yeah. :-- sarah: yeah. i think that it's pretty hard to listen to some of those stories, and as well as some of the other stories that came out over the past couple of years and women in tech and not think that's something's not amiss. so i do think this is an issue that's not going away. it's something that almost every woman who works in venture capital has experience of. it is pretty toe curling, talking about billion-dollar funds. cory is it worse in finance or : business? not that finance isn't business but it's its own peculiar thing. sarah: i think that one of the things about finance is alternative assets is deals can take years to come to fruition. and even after they come to fruition who knows if they're successful or not. so during that time you are based on your reputation and who you know and the perception of success rather than in business where you have quarterly earnings that tell you whether or not you are doing a good job. so i think women can do better in an analytical environment where they can prove that they're good as opposed to needing to bro out on a strip club bus or whatever it may be. cory when we look at this case : do you think that there will be another case like this? we've heard about class action suits on these same issues. this could have a much wider reaching effect. joan: i mean, during the trial there were two more lawsuits filed against tech companies. that may be a coincidence. i suspect it's not. what we saw in this trial is that although there was a lot of evidence that cut in favor of kleiner perkins, there was also very, very clear evidence of gender stereotyping and the kind that is often encountered by asian-american women. for example, in a recent study one of the findings that we had is that asian american women are often faulted for being too passive. a word that was literally came up in the kleiner perkins trial. and that asian american women walk a very, very narrow tight rope between being seen as too feminine to be competent, too passive, too quiet, she was called. but also too masculine to be likeable. she was called both passive and demanding. that is a pretty narrow tightrope. and this is really a gender bias training to the world. so i think it has changed the conversation in a permanent way. cory: we'll be right back. ♪ cory: this is "the best of bloomberg west." indiana's new so-called religious freadm law has become -- religious freedom law has become a huge issue in the technology and business industry. after the law, tech companies spoke out in protest. more than a dozen tech leaders signing a letter. salesforce is limiting employee travel to the state as are some city and state governments. cloud era pulled out of a big data conference. i spoke with mike olson just hours after indiana governor mike pence vowed to fix the law. mike i think it's encouraging : but we would like to see exactly what the legislature and the administration intend. cory what is it about this law : that offended you guys so much that you very quickly moved to speak out against it? mike several things. : first of all, equality is a constitutional right. very simple, very direct. on that basis, this law was a problem. not just on that basis though. we believe that equal rights for all citizens, including lgbt citizens, are fundamental. that it is good for business. and that it is the morally right thing for us to stand up for that class of citizens as for others. there were lots of problems with the indiana law. we're happy to see the governor begin to address some of them and we're looking forward to seeing more. cory i was really struck, i : think all of us have been struck by how the tech community in particular have struck out -- have jumped out in front of this. marc benioff making a lot of not -- loud noises, as marc benioff is prone to do. but your company, yelp, apple, really getting out there. angie's list is an indiana based company really quickly speaking out about this. why do you think tech companies have taken the lead here? mike i think mark did a great : service in focusing attention on this law. this is different from the laws in many other states. that's not to say those laws don't have problems but this one is especially egregious. by focusing attention and by giving the tech community, which swings a lot of revenue, which has a lot of influence among businesses in indiana, he gave us the chance to affect the course of this law. and, i hope, to lead to its revision or repeal. cory mark, it certainly did : that. also, tim cook, also the biggest company in the world, the biggest tech company, talked about all the other states that have similar laws. have you gone through and thought about what this means to the other states? have you put yourself in position where you're going to have to speak out or decide whether those laws are acceptable to do business in those other states that have laws? mike it's a good question but : it's not just a cloudera question. i think one of the services that mark and tim and the tech community provided here was to focus attention on all of those other laws. there are some substantial differences and we haven't read all of the statutes in detail. but i think now that there is a national conversation under way -- underway about what is permissible, what is written into legislation and what that ought to mean for businesses like ours. i think it's a very helpful development and i look forward to continuing that conversation and to finding more ways that cloudera can be supportive of rights of all people. cory: i want to play a sound byte from mike pence as well because he talked for quite a bit and had some interesting things to say. check this out. mike i don't believe for a : -- governor pence: i don't believe for a minute that it was the intention of the general assembly to create a license to discriminated or a right to deny services to gays lesbians or anyone else in this state. and it certainly wasn't my intent. cory: do you believe that, that it wasn't his intent? mike look, i'm not going to call : into question what the governor intended. what i will do is highlight what the governor and the legislation did. and that is, is wrote a law that legalized discrimination against classes that ought to be protected, that certainly are in federal law and in other states. the state of indiana lacked those protections. if this outcry leads the state to write reasonable protections into its code, then i think we've accomplished something pretty great. and we look forward to seeing what the governor does in that regard. cory before we congratulate : ourselves for just the tech community, even in indiana we saw a huge protest. the indiana star, indianapolis star, the newspaper there in indiana, not known as a bags of -- a bastian of liberalism a really powerful full cover saying fix this now. religious freedom restoration act, taken a really powerful stance on this. i wonder what this means though, if editorials can do what editorials do. but i wonder if the voice of business and the almighty dollar speaks louder when businesses such as yours, mike, decide to pull business away from that state. mike look, a couple things. : first of all, i believe that most people in indiana believe in equality and want civil rights to be enforced for everyone. i believe that to be true. when we pulled out of the indy big data conference, we weren't directly harming the governor or the legislature. we were, frankly, taking a -- an economic toll on a bunch of business leaders who may not well share the views and opinions of the legislature of the administration. we harmed ourselves. we had an opportunity to go and engage with a bunch of prospective customers and others and that was costly for us. we believed that it was the right thing to do. by encouraging moderate voices in indiana to speak up in support of civil rights, i think we've had some effect as a broad community in driving the dialogue there in the right direction. again, i am really pleased to hear some encouraging words out of the governor this morning and i really look forward to those words turning into action that makes a difference. cory: mike olson, cloudera's chief strategy officer. we'll be right back. ♪ west." -- cory: this is "the best of bloomberg west." so what if target executives had been able to identify the card hackers? the security company allows companies to track everything connected to a network and executives can check and evpbsht -- even shut down these end points in just 15 seconds. they raised $15 million to follow the firm's initial investment of $90 million. the board member is joining the board also joined me here in the studio. >> the first thing that's really unique is the instant response across your network. like how many devices are connected to your internet? most people go one, two. cory: if i think about it i've probably got a couple dozen. stephen -- steven: but you don't know the number. but imagine a global company. how fast can you figure out which ones are connected, what they're running? that's what titanium lets you do in 15 seconds. so you have a million different cash registers, laptops, figure out what's going on on all of them in 15 seconds. cory is this a big data : solution? it's been a focus of your firm. but all that information just all those ip addresses. the example of this company, the lights above us are ip controlled. steve: that's what's so fascinating. because in the world of security what matters the most is getting the most up-to-date information. it is not a data solution. it is a communication solution. in the days of system management, the tools were about a database. that is walking around your house, writing it down. titanium brings a combination of systems management and security to one product, to give you a 15 second answer. cory: does it work like the spiders to do the web searches like google, where they would go out and paying -- ping the internet and collect information? steve: with the tools used to work is, they would ask all computers all at once what is going on? and wait for them to all answer. it would take a lot of special network hardware and databases. this says to every computer look to the right and left of you, find out what is going on, and we will budget up and send it back, like a buddy system. cory: i get that. this is fascinating. how does that response to types of hacks we are seeing now, the types of hacks are changing, not least because we are seeing state-sponsored hacker attacks, the sony attack by north korea. steve: the interesting thing about breaches or infiltrations today is they are multistep. they often involve what looks like a legitimate use of something that is going on. and they involve a combination of programs and networking. corey: i have -- cory: we have seen a lot of cases where somebody gets into the network and stays there for months, or even a year. steve: sometimes they have legitimate credentials, and they find a program that talks to a program they plan over here which starts to direct information. tanium lets you have this complete view of information, of what is going on in your network, which machines might send a certain packet over the network, which machines are running a certain program instantly. when you do understand a breaches going on, you are often given a pattern, like look for this pattern on different machines, or look for this network traffic, but you have no way of knowing at all. cory: i don't understand. if some of the attacks are slow, why does instantaneous detection matter? steve: a great -- steven: the breaches are using these known infiltrations, but in certain arrangements -- they do take time. the problem is, you cannot figure out what is going on. once you do figure out something is happening, you need to shut it down instantly. that is where tanium's response comes in. the breaches, you get a memo from a security company telling you to look for things on the network area the problem is, today, there is no way to do that. these memos pileup in the inbox of every security professional and it takes days to go through each one. with tanium, it takes seconds. you can rifle through them really quick. the existing tools are all about trying to be predictive and block. those play a role, but most of the time, you cannot predict what is going on in a network, and you have to just react and respond. cory: we will be right back. ♪ cory: you are watching the best of "bloomberg west," where we focus on the best of innovation and technology. i am cory johnson. go daddy went public this week. the web hosting company is well known for its sexy commercials featuring danica patrick. it started trading wednesday on the new york stock exchange, shares surging. here is godaddy's ceo blake irving talking about the company's target customer. blake: we help somebody take their idea online and run there -- run their business of a digital entity, and that is our business. cory: so public again, godaddy sporting $4 billion, but also lost money last year. for more perspective on this tough business, i talked to one of the biggest competitors, hari ravichandran of endurance international. hari: it depends on the domain -- the segment of the market you compete in, the domain element of the marketplace, the product is similar no matter who you buy from. it is intensely competitive. if you expand the landscape out beyond the domains to include web presence, to include mobile apps, web building, it is competitive, but tailwinds in this market have been pretty amazing. a number of small businesses wanted to come online, want to use these services. there is a real seachange in this market, i would say, over the last five years even, so that is benefiting everybody including ourselves and the folks over at godaddy and other places. cory: yeah. so what is that seachange? when i read the prospectus at godaddy -- it seems they are still focused on desktop and laptop. they acknowledge mobile, but it does not seem to be their focus. hari: the pivotal happened when social got really popular. when you think of small business, even somebody who does not have a web presence or even a domain, when their customers start asking them where exactly they can find them online, that really started this sort of movement of these small businesses that were off-line starting to think about hey, i need to be online, i need to be interfacing with my customers online. i need to be able to talk to them online, which meant they had to go out and start getting a web presence. i think that has been the real crux of it is these off-line businesses wanted to come online because it drives value for their business. what we have done somewhat different is, we do not lead with branding or off-line marketing. we market almost entirely online and we start customers out with a web presence, so our profile is different. our bottom line cash flow is very comparable to godaddy, but our top line is not as high because we start with a higher price point. whether the strategy worked or not, clearly they have a great scaled business that is growing nicely. pivoting now to the next stage of evolution to get more people into web presence and additional products is a pretty smart strategy, i think. cory: the next domain name has been a carrot at the end of the state in your industry. the bold thesis has been everyone who owns the dot com , name, cocacola.com and cocacola.net, they will run out and want cocacola.berlin or whatever. but when i look at the results of some of your competitors, for example web.com, they have not benefited from that. that movement has not really happened. is that a shimmer out there, is that business ever going to pick up? hari: over time this is going to get better and create tailwind in the market because really in the domain market where we do not necessarily compete, what has been happening is a real supply-side imbalance where if you go in and look for a particular domain, eight out of 10 times you will find that is not available. somebody has already bought it you have to go to the secondary market and pay a lot of additional dollars to be able to get that domain. so somebody has a choice to -- cory: there are companies like web.com buying the domain for -- before the customer wants it, incurring the cost. are the customers going to want it, i guess, is the question. hari: what has been happening with the new tld's let's say you have a choice of cory.com for $5,000 or cory.abc or cory.xyz for a much better price. the bet that the market is making this over time, people will gravitate toward these newer tle's coming out because the price is more comparable. it is ill shaking out. all of the tle's out there today are still very niche. it is like .club .nyc, .guru .ninja. those are the ones that are already out through the auctioning process. what is going to happen over the course of this year and next year are more generic ones are going to come out. like dot web, that will be a popular one where people will say i can be part of that dot web revolution coming up. cory: that was hari ravichandran of endurance international. the best of "bloomberg west" will be right back. ♪ cory: this is the best of "bloomberg west." i'm cory johnson. bmw is counting on technology to help it keep its lead against rivals like audi and mercedes in the luxury market. matt miller caught up with the ceo ludwig willisch on the floor of the new york auto show. matt: i'm here and i thought it would be interesting to talk about the high-tech i-cars i-line that they have out. lewdly is a race car -- you are a race car collector and racecar driver. you happen to drive the i3. when you told me that i couldn't believe it. you said it's got the bmw dna in it. ludwig: absolutely. that is why i drive it. the way it drives it's so agile it's light, and it's great as far as acceleration is concerned. that's all you need for a commute. this is what the car is meant for. bmw is true to its brand. matt: so the i3 is an all electric car. you can get it with a range extender but that doesn't drive the axel. it's completely green in that sense. ludwig: it is. it's green in the sense it's emission free. but we think it's also very important that the whole production is very sustainable. we start producing the carbon fiber in moses lake washington with hydro power. we just use water to produce it. we don't have any electricity outside of our own plant necessary. then the car is built in germany with wind power, so the whole production cycle, we also use about half of the water we would use otherwise, so the production is much more sustainable, much more emission-free than anybody else can produce a car, which we think as far as the carbon footprint is concerned, really important if you talk about sustainability of an automobile. matt: i have yet to drive the i3 myself. i have had the pleasure of driving the i8, and it is shockingly amazing. you do not expect it to be as good as it is. the grip is incredible, the way it lays down power is so smooth and linear. and this is a concept that i think your competitors are finally catching on to. the fact that you can have this hybrid green power train and still have so much power. i mean, it's almost like you feel whatever the opposite of green is, but you're still doing something good for the environment. ludwig: absolutely. it's the best of two worlds. the stunning looks of the super car. it's the performance of the super car. you can even sit four people -- at least on a shorter journey -- and you have more than 70 miles to the gallon. i mean this is something that , hasn't been accomplished by anybody else. again, it's the sustainable production method that really makes the car stick out as far as sustainability is concerned. matt: what do you think is the future of bmw power trains? in your regular, in the 3 series, in the 5 series, are we going to see electric power alongside gasoline and diesel engines? ludwig: we will. we will have plug-in hybrids for all the major models, and that's the future we think that you will be able to do both. you drive electrically in the city, but use the conventional drive train for the freeways. matt: what about the future of connectivity? i mean i think the i-drive is , the best system as far as infotainment systems. but this in-car tech is being more important especially in silicon valley. where is bmw heading with that? ludwig: very clearly, and it is not only in silicon valley. people are interested in getting more connectivity to get information at their fingertips that they want to have while they're driving, but it's also about having some little helpers like self-parking. whenever it's not so much fun to drive a bmw, electronics kick in and help you. that's what it's all about. matt: obviously the ultimate driving machine is the slogan i grew up with. and when i get behind the wheel of a bmw i want to drive myself. but are we going to see the day when there's an autonomous bmw? ludwig: maybe if you're really in a bad traffic situation you will be able to engage autonomous driving because it's no fun. you can then review e-mails or read a book, whatever you want. but as soon as you want to drive again, you decide yourself. it should always support the driver but don't dominate the driver. cory: that was our matt miller with bmw's north american ceo. the best of "bloomberg west" will be right back. ♪ cory: this is the best of "bloomberg west." i'm cory johnson. it is one of the most talked about app debuts in recent memory. we are talking about the live streaming app meerkat. four weeks after launching, it raised $14 million in funding and quite quickly. the app lets users live broadcast videos and comments from their smartphone to twitter. they can't replay or save the video. it is snapchat meets facetime, meets vh1 pop up video, all that and more. and the best is though could they already be behind it? it has fallen from number 140 to 523 last week. i put that very question to meerkat's ceo ben rubin. ben: it has not that early in our venture, actually. we have been in the live video space for more than 2.5 years now. we've known success and failures before. one thing that is very interesting to see about meerkat is that it was actually able to unlock behavior of live-streaming behavior. like people that wouldn't live stream otherwise are now live streaming. that is, for us, a success. cory: so we're meerkating right now as we're having this conversation. over here, gil martinez is holding -- is that your phone? ben: yes. cory: and there we are. and so if people want to watch this kind of a broadcast while it's happening, what do they do? they log on to -- is it the app, or twitter? ben: the moment you go live, it is live-stream published on twitter. everyone who follows you gets a push notification. and people can watch you from web or from phone. cory: and they can go to my twitter account or your twitter account? we are both on there right now, being discussed. ben: yes. if you are commenting on that, that will be shown on your twitter account. yes, that's correct. cory: so talking about how that business works. right when you launched, first you launched that sxsw, right? ben: no. we launched at product hunt, actually. we put it on -- it was just a side project. the company -- we had a product of live video and we closed that. it was maybe 400,000 users we had. we shut it down and went to this exploratory mode when we said we're going to release a very simple product every two months. and one of them was meerkat. the first thing that we had. we had, like, six experiments. the first thing that we had was meerkat. and we put it on product hunt on the 27th of february. and that was -- we did not plan to do anything at south by but , the community was extremely supportive. cory: there's also the sort of search for the next big thing. twitter was first launched at sxsw. so ever since, people have been trying to find the next twitter. then -- ben: but like twitter, twitter was out nine months before sxsw. but i think there is a cultural readiness, there is a technological readiness. cory: crown the next king? ben: no. we don't look at it as kings or queens or anything. it's more about -- is the technology now allows a different behavior that could be impactful in a meaningful way? right? and if we can allow people to participate, a large audience to participate in happening by removing friction from going live, by removing friction by watching in different places in the world, and everyone can watch live stream from their pockets, basically, or stream live video from their phones in their pocket, that means that the cost to go live and to distribute to a large audience is literally zero now. cory: i wonder what people are commenting right now as we look at the comments as they come across. but i also wonder, instantly twitter announces they're going to kind of pull the rug out from you in being able to map the social graph on top of whatever that social graph is, but also twitter announcing a competitive product. is that a sign of success to you? ben: yes. i do not know if it is a sign of success. definitely for the space, a sign of success. for us, twitter was always a launching pad. we didn't expect to be this like -- to be so much, to be receptive -- like for people to receive us so well in the beginning. and obviously we understand twitter and the business decision that it's making. and it's also a good, good sign to see that the company that is very smart with a great product like twitter is doing steps in this direction. cory: that was meerkat ceo ben rubin. for more on the battle between meerkat and twitter's periscope, i spoke with product hunt's ryan hoover. ryan: meerkat, periscope, they launched at product hunt. it is a place for people to discover new apps and technology. cory: so to me the launch of meerkat and twitter is on top of it not letting everyone gravitate to them, what do you make of that? and then launching a competitive product? ryan: it is interesting that meerkat, periscope, and many others are in this live streaming space at the same time. this happens frequently. it's not that twitter is copying them or vice versa. and it's just these, the change of behavior and technology is i think forcing people to look more at live streaming as an actual medium. cory: what are the inspirations? is it facetime or snapchat? ryan: in some ways, snapchat created this behavior of people being willing to share their face and themselves in public. and then there's of course technology, bandwidth, the screens are better on phones. everyone has this live streaming device in their pocket nowadays. cory: when i look at businesses and try to figure out -- you can have the best idea in the world. i do not try to figure out who is going to succeed. you're not going to win. ryan: right. cory: but i wonder, when you look at businesses that are marketplaces versus businesses that are not, they get targeted by competitors. the new york stock exchange, it took decades to happen. ebay has a lock on online auctions still despite the efforts of some well heeled competitors like amazon. is there room for lots of different services like this, or will everyone go to where everyone is because that's who you're sharing with? ryan: there's certainly a lot of room in the live streaming space and there's different niches , that appear. twitch tv, which was purchased by amazon recently -- it is focused on live streaming of video games. cory: it is huge. ryan: yes, it is massive. meerkat and periscope are extremely early. who knows how they will converge or diverge over time? their audiences may be different in the long run but it's so early. meerkat launched months ago, periscope last week. cory: i guess i wonder, is the existing social graph like facebook knows who my friends are and i curate that by kicking people off or meeting new people. linkedin has a different graph of me. twitter a third graph. i might going to have -- am i going to have -- but there's a lot of overlapping. but are -- is there an expectation of these businesses that people will have dozens of social graphs or that the couple of companies who own that will own everything on top of that? brian: that's a good question. meerkat launched using twitter's graph. and they have leveraged that and they are building out other ways to build a graph through their follow button and some other things. i think the tv graph is very relevant to maybe a twitter but it could be different as well. the people you watch on tv are different. cory: that's product hunt's ceo ryan hoover. the best of "bloomberg west" will be right back. ♪ cory: this is the best of "bloomberg west." i'm cory johnson. over the holiday weekend chances are you might be drinking some wine. it is easter after all. vivino is an interesting young business. it lets users catalog and purchase their favorite wine. even has a data base of over 300,000 restaurant wine lists with reviews. we got the details from heini zachariassen. vevino's ceo and founder. heini: we think that people should drink what they like. and a lot of cases people don't know what they like. cory: as long as they're not driving. some people listen to the show on the radio. i do not want to be in their car not -- right now, think they can busted open. heini: please wait until later. so people might know that i like this particular wine but they don't know what it is. so with us you can actually see what types do you like what do you not like and so on. you learn more about your own taste. cory the way it works is with : the smart phone you snap a picture of the label. what happens on the back end? heini: it ships that picture to our servers and compares to our massive data base of wine images. we have 130 million pictures of wine labels. compared to that, few seconds, comes back to you with a rating, review, everything. and if your friends have the wine, cory had this wine, rated two stars, did not like it whatever we have on your social network. cory: back to this discovery. i know in the wine business it's so hard, the experience of going to a wine store and buying wine is fairly unique in retail where the retailer has so much influence over the purchasers, maybe more than any other industry. does this start to change that model a little bit? heini: i think it's going to move people towards where they start learning more about themselves. when you talk about retail another thing is actually restaurants. we built this wine list scanner. we take a photo of the wine list itself. we go through every single line and put a rating, which makes the experience a lot easier. cory: so i look at the wine list, say i don't know what to get here. i am not a wine snob. the staff is laughing. but it literally rates it on the phone? heini: yeah. we take the picture and put the rating right next to every single wine, which helps you make a better decision. samir liaise -- someliers are great but they don't know you as well as vivino knows you. cory: your revenue model is what? heini: we're going to help you find your next wine so we're going to point you towards retailers that sell this wine. it is sort of an e-commerce play we are never going to ship . we are never going to ship wine -- and e-commerce play. we are never going to ship wine directly. we'll have sellers. cory: will you get paid that way or piece of the purchase? heini: it could be both actually. exactly right. cory: i would take a percentage. heini: yes. when cory's buying we definitely want a percent. cory: but is that how the business is going to work? heini: yes. kind of more of a paper click in the beginning but percentage in the long term. cory: and finally, where do you see your biggest growth? what's the demographic? heini: there's no doubt about the millenials are coming in now. 30 million say that regular wine drinkers. and they have a different way of thinking because they are more open to trying new things. they're used to going to restaurants and checking yelp before. now they're checking vivino before drinking a bottle of wine. cory: that was heini zachariassen of vivino. that does it for this weekend's edition of the best of "bloomberg west." we will see you next week. ♪
i talked to a partner and kleiner's defense attorney in this case. this is her first interview since the verdict. lynn: great to be done. it's great to be back in my office. great for kleiner to have prevailed on everything. cory: did you have a sense during the trial of how much it was being followed? the jurors were stunned when they walked out and saw all the cameras there. lynn: it was overwhelming. just a tidal wave of reporters. occasionally people would post tweets on my facebook page or email me. i followed a few people but i didn't have a sense of the whole scope of it until the end. cory: what made this case unusual? it's got an unusual amount of coverage. an unusual amount of -- it was supposedly having an unusual impact on silicon valley. lynn: it's not going to happen. cases don't change industries. that's not what they're about and not what they do. but this case was the right issue at the right time. wrong case, wrong forum. very hot issue obviously in silicon valley and people feel passionately about it. but the media coverage made everything different. cory: how so? lynn: you could feel it. you could hear comments in the audience, the jurors were distracteded by the clacking of the keyboords. you come out and have cameras in your faces. it was a very different experience for a trial lawyer. cory: did that help you? lynn: it didn't help. it's a distraction you have to look beyond, keep your eyes on the prize. and that's what we did. you're always worried what is the press reporting, if the jurors are reading it. but this jury seemed to be very careful about following the judge's admonitions. cory: one of the things i've read and heard about you is that you're very aware of what the jury is doing at all moments in the courtroom. and when you're walking out or when the jury is walking out. lynn: you have to watch the jury. you have to see if they're having a bad reaction to you. that's important. but i wouldn't say staring at them all the time. it's just important for a trial lawyer to try and read how you're coming across and how they're reacting to you. cory: do you believe there's a culture of sexual discrimination in silicon valley in venture capital? lynn: i don't see it. certainly not in the clients i work with. i'm not sure they would hire me if there were. i suppose you could be really cynical and say that's why they hired me. but i don't see it. i hear it all the time about big law and i'm a senior woman partner in a big law firm. and i don't see it there either. so part of my job is to find out when it's not there. maybe that prejudices me in a way. cory: but it sounds like you're saying it's not there. lynn: i don't think it's there. cory: the narrative has been the opposite. lynn: definitely. the numbers are bad. that has to change. and when numbers increase, cultures change. cory: so they say venture women capitalists of women were down. i've talked to lawyers who say why isn't it 50/50? lynn: because there weren't women in the pipeline. and as the professor, who is an expert in the trial testified, venture firms have been shrinking in the past few years. so that's going to hinder hiring. what kleiner did made it number one in the nation. but there aren't women entrepreneurs. there aren't women in science and tech. and unless the culture fixes that, unless we put women in math and science in ways that we're not doing now, the numbers are not going to change. cory: so ellen pao lost her case, but did she ultimately win by bringing these issues to light? sarah: the things the jury were asked to rule on were incredibly narrow, specific dates that were boxed in. and so what we heard during the trial was sort of a referendum on pao's years. but what the jury was deciding on were snippets of that, and does it meet very particular legal standards. and i think we've seen other cases where public opinion can differ from what the jury decides. there's been a lot of that particularly most recently around ferguson and the "i can't breathe" in new york. so that's definitely something that does happen. and i do think that you can still look at something as a learning experience and take something to gain insight from even if they don't win the case. cory: can i acknowledge that there's racism and that horrible things happened in missouri but they didn't happen here? sarah: of course. i was just using that as an example in terms of where public opinion goes one way and the court decision goes another. cory: when you look at this case, is this case -- we're going to remember this as an important case? i was surprised to see it in the cover of the "new york times." joan: i was not. i think it was a very important case. for example, i certaintly don't think that going forward you're going to have a honey pot like kleiner perkins not able to find its eeo policy. cory: do you think? joan: i think. yeah. and not have a situation where a woman isn't invited on an important networking event like that ski trip or the dinner. there were a lot of factual disputes here. also, kleiner perkins got lucky in that in some ways ellen pao was not as sympathetic a plaintiff. but if she had been a different kind of plaintiff, if this had been a different kind of a job for example, a job where there were more clear-cut requirements, this could have gone very differently. and remember that the court ruled that kleiner perkins was potentially on the hook for over $140 million of punitive damages. now, they dodged the bullet. but going forward, i think practice is going to be very very different both in venture capital and in tech more generally. cory: so we've all read a lot about the case. we know the case a little bit. the people who knew it maybe the best, the jurors, were kind enough to speak to us right after the verdict was announced. check this out. juror: when you see comparable or similar feedback, meaning areas that they need to improve, yet one gets promoted and moves to the fast track and the other is held back in a particular role, then to me it served the -- it validated the claim of being discriminated against on the basis of gender. juror: based on testimony we heard, it probably had more to do with personability and her ability to get along with people. her personality. and a lot of people can be very analytically driven, which it sounds that's what she was. that's what made her great in the chief of staff role. but we felt in the long run that probably that wasn't what her role was going to be, just based on the reviews and the e-mails that we saw. cory: so there was the two sides of the case. and the latter side is what carried the day there. but when you look at this, do you think that this is just the right issue, the wrong case? sarah: yeah. i think that it's pretty hard to listen to some of those stories, and as well as some of the other stories that came out over the past couple of years and women in tech, and not think that's something's not amiss. so i do think this is an issue that's not going away. it's something that almost every woman who works in venture capital has experience of. it is pretty toe curling talking about billion-dollar funds. cory: is it worse in finance or business? not that finance isn't business but it's its own peculiar thing. sarah: i think that one of the things about finance's alternative assets is, deals can take years to come to fruition. and even after they come to fruition, who knows if they're successful or not? so during that time, you are based on your reputation and who you know and the perception of success, rather than in business, where you have quarterly earnings that tell you whether or not you are doing a good job. so i think women can do better in an analytical environment where they can prove that they're good, as opposed to needing to bro out on a strip club bus or whatever it may be. cory: when we look at this case do you think that there will be another case like this? we've heard about class action suits on these same issues. this could have a much wider reaching effect. joan: i mean, during the trial there were two more lawsuits filed against tech companies. that may be a coincidence. i suspect it's not. what we saw in this trial is that although there was a lot of evidence that cut in favor of kleiner perkins, there was also very, very clear evidence of gender stereotyping of the kind that is often encountered by asian-american women. for example, in a recent study one of the findings that we had is that asian american women are often faulted for being too passive. a word that literally came up in the kleiner perkins trial. and that asian american women walk a very, very narrow tightrope between being seen as too feminine to be competent too passive -- too quiet, she was called. but also too masculine to be likeable. she was called both passive and demanding. that is a pretty narrow tightrope. and this is really a gender bias training to the world. so i think it has changed the conversation in a permanent way. cory: we'll be right back. ♪ cory: this is the best of "bloomberg west." indiana's new so-called religious freedom law has become a huge issue in the technology and business industry. after the law, tech companies spoke out in protest. more than a dozen tech leaders signing a letter. salesforce is limiting employee travel to the state, as are some city and state governments. cloudera pulled out of a big data conference. i spoke with mike olson just hours after indiana governor mike pence vowed to fix the law. mike: i think it's encouraging but we would like to see exactly what the legislature and the administration intend. cory: what is it about this law that offended you guys so much that you very quickly moved to speak out against it? mike: several things. first of all, equality is a constitutional right. very simple, very direct. on that basis, this law was a problem. not just on that basis though. we believe that equal rights for all citizens, including lgbt citizens, are fundamental. that it is good for business. and that it is the morally right thing for us to stand up for that class of citizens, as for others. there were lots of problems with the indiana law. we're happy to see the governor begin to address some of them and we're looking forward to seeing more. cory: i was really struck, i think all of us have been struck by how the tech community in particular have jumped out in front of this. marc benioff making a lot of loud noises, as marc benioff is wont to do. but your company, yelp, apple, really getting out there. angie's list is an indiana based company really quickly speaking out about this. why do you think tech companies have taken the lead here? mike: i think mark did a great service in focusing attention on this law. this is different from the laws in many other states. that's not to say those laws don't have problems, but this one is especially egregious. by focusing attention and by giving the tech community, which swings a lot of revenue, which has a lot of influence among businesses in indiana, he gave us the chance to affect the course of this law. and, i hope, to lead to its revision or repeal. cory: mark, it certainly did that. also, tim cook, at the biggest company in the world, and the biggest tech company, talked about all the other states that have similar laws. have you gone through and thought about what this means to the other states? have you put yourself in position where you're going to have to speak out or decide whether those laws are acceptable to do business in those other states that have similar laws? mike: it's a good question but it's not just a cloudera question. i think one of the services that mark and tim and the tech community provided here was to focus attention on all of those other laws. now, there are some substantial differences and we haven't read all of the statutes in detail. but i think now that there is a national conversation underway about what is permissible, what is written into legislation, and what that ought to mean for businesses like ours. i think it's a very helpful development and i look forward to continuing that conversation and to finding more ways that cloudera can be supportive of rights of all people. cory: i want to play a sound bite from mike pence as well because he talked for quite a bit and had some interesting things to say. check this out. governor pence: i don't believe for a minute that it was the intention of the general assembly to create a license to discriminate or a right to deny services to gays lesbians or anyone else in this state. and it certainly wasn't my intent. cory: do you believe that, that it wasn't his intent? mike: look, i'm not going to call into question what the governor intended. what i will do is highlight what the governor and the legislation did. and that is, they wrote a law that legalized discrimination against classes that ought to be protected, that certainly are in federal law and in other states. the state of indiana lacked those protections. if this outcry leads the state to write reasonable protections into its code, then i think we've accomplished something pretty great. and we look forward to seeing what the governor does in that regard. cory: before we congratulate ourselves for just the tech community, even in indiana we saw a huge protest. the indiana star, "indianapolis star," the newspaper there in indiana, not known as a bastion of liberalism, a really powerful full cover saying, fix this now. religious freedom restoration act, taken a really powerful stance on this. i wonder what this means though, if editorials can do what editorials do. but i wonder if the voice of business and the almighty dollar speaks louder when businesses such as yours, mike, decide to pull business away from that state. mike: look, a couple things. first of all, i believe that most people in indiana believe in equality and want civil rights to be enforced for everyone. i believe that to be true. when we pulled out of the indy big data conference, we weren't directly harming the governor or the legislature. we were, frankly, taking an economic toll on a bunch of business leaders who may not share the views and opinions of the legislature of the administration. we harmed ourselves. we had an opportunity to go and engage with a bunch of prospective customers and others, and that was costly for us. we believed that it was the right thing to do. by encouraging moderate voices in indiana to speak up in support of civil rights, i think we've had some effect as a broad community in driving the dialogue there in the right direction. again, i am really pleased to hear some encouraging words out of the governor this morning and i really look forward to those words turning into action that makes a difference. cory: mike olson, cloudera's chief strategy officer. we'll be right back. ♪ cory: this is the best of "bloomberg west." so, what if target executives had been able to identify the card hackers? the security company tanium allows companies to track everything connected to a network, and executives can even shut down these end points in just 15 seconds. they raised $15 million to follow the firm's initial investment of $90 million. the board member is joining the board also joined me here in the studio. steven: the first thing that's really unique is the instant response across your network. like, how many devices are connected to your home internet? most people go one, two. cory: if i think about it i've probably got a couple dozen. steven: but you don't know the number. but imagine a global company. how fast can you figure out which ones are connected, what they're running? that's what tanium lets you do in 15 seconds. so you have a million different cash registers, laptops, figure out what's going on on all of them in 15 seconds. cory: is this a big data solution? it's been a focus of your firm. but all that information just all those ip addresses. the example of this company, the lights above us are ip controlled. steven: that's what's so fascinating. because in the world of security, what matters the most is getting the most up-to-date information. it is not a data solution. it is a communication solution. in the days of system management, the tools were about a database. that is walking around your house, writing it down. tanium brings a combination of systems management and security to one product, to give you a 15 second answer. cory: does it work like the spiders to do the web searches like google, where they would go out and ping the internet and collect information? steven: the way the tools used to work is, they would ask all computers all at once, what is going on? and wait for them to all answer. it would take a lot of special network hardware and databases. this says to every computer, look to the right and left of you, find out what is going on and we will bundle it up and send it back, like a buddy system. cory: i get that. this is fascinating. how does that response to types of hacks we are seeing now? the types of hacks are changing, not least because we are seeing state-sponsored hacker attacks the sony attack by north korea. steven: the interesting thing about breaches or infiltrations today is they are multistep. they often involve what looks like a legitimate use of something that is going on. and they involve a combination of programs and networking. cory: we have seen a lot of cases where somebody gets into the network and stays there for months, or even a year. steve: sometimes they have legitimate credentials, and they find a program that talks to a program they plant over here which starts to direct information. tanium lets you have this complete view of information, of what is going on in your network, which machines might send a certain packet over the network, which machines are running a certain program, instantly. when you do understand a breach is going on, you are often given a pattern, like look for this pattern on different machines, or look for this network traffic, but you have no way of knowing at all. cory: i don't understand. if some of the attacks are slow, why does instantaneous detection matter? steven: the breaches are using these known infiltrations, but in certain arrangements -- they do take time. the problem is, you cannot figure out what is going on. once you do figure out something is happening, you need to shut it down instantly. that is where tanium's response comes in. the breaches, you get a memo from a security company telling you to look for things on the network area the problem is, today, there is no way to do that. these memos pileup in the inbox of every security professional and it takes days to go through each one. with tanium, it takes seconds. you can rifle through them really quick. the existing tools are all about trying to be predictive and block. those play a role, but most of the time, you cannot predict what is going on in a network, and you have to just react and respond. cory: we will be right back. ♪ cory: you are watching the best of "bloomberg west," where we focus on the best of innovation and technology. i am cory johnson. godaddy went public this week. the web hosting company is well known for its sexy commercials featuring danica patrick. it started trading wednesday on the new york stock exchange, shares surging. here is godaddy's ceo blake irving talking about the company's target customer. blake: we help somebody take their idea online and run their business of a digital entity and that is our business. cory: so public again, godaddy sporting $4 billion, but also lost money last year. for more perspective on this tough business, i talked to one of the biggest competitors, hari ravichandran of endurance international. hari: it depends on the segment of the market you compete in the domain element of the marketplace, the product is similar no matter who you buy from. it is intensely competitive. if you expand the landscape out beyond the domains to include web presence, to include mobile apps, web building, it is competitive, but tailwinds in this market have been pretty amazing. a number of small businesses wanted to come online, want to use these services. there is a real seachange in this market, i would say, over the last five years even, so that is benefiting everybody including ourselves and the folks over at godaddy and other places. cory: yeah. so what is that seachange? when i read the prospectus at godaddy -- it seems they are still focused on desktop and laptop. they acknowledge mobile, but it does not seem to be their focus. hari: the pivotal happened when social got really popular. when you think of small business, even somebody who does not have a web presence or even a domain, when their customers start asking them where exactly they can find them online, that really started this sort of movement of these small businesses that were off-line starting to think about hey, i need to be online, i need to be interfacing with my customers online. i need to be able to talk to them online, which meant they had to go out and start getting a web presence. i think that has been the real crux of it is these off-line businesses wanted to come online because it drives value for their business. what we have done somewhat different is, we do not lead with branding or off-line marketing. we market almost entirely online and we start customers out with a web presence, so our profile is different. our bottom line cash flow is very comparable to godaddy, but our top line is not as high because we start with a higher price point. whether the strategy worked or not, clearly they have a great scaled business that is growing nicely. pivoting now to the next stage of evolution to get more people into web presence and additional products is a pretty smart strategy, i think. cory: the next domain name has been a carrot at the end of the state in your industry. the bold thesis has been everyone who owns the dot com name, cocacola.com and cocacola.net, they will run out and want cocacola.berlin or whatever. but when i look at the results of some of your competitors, for example, web.com, they have not benefited from that. that movement has not really happened. is that a shimmer out there, is that business ever going to pick up? hari: over time this is going to get better and create tailwind in the market because really in the domain market where we do not necessarily compete, what has been happening is a real supply-side imbalance where if you go in and look for a particular domain, eight out of 10 times you will find that is not available. somebody has already bought it you have to go to the secondary market and pay a lot of additional dollars to be able to get that domain. so somebody has a choice to -- cory: there are companies like web.com buying the domain before the customer wants it, incurring the cost. are the customers going to want it, i guess, is the question. hari: what has been happening with the new tle's, let's say you have a choice of cory.com for $5,000 or cory.abc or cory.xyz for a much better price. the bet that the market is making this over time, people will gravitate toward these newer tle's coming out because the price is more comparable. it is ill shaking out. all of the tle's out there today are still very niche. it is like .club, .nyc, .guru, .ninja. those are the ones that are already out through the auctioning process. what is going to happen over the course of this year and next year are more generic ones are going to come out. like dot web, that will be a popular one where people will say i can be part of that dot web revolution coming up. cory: that was hari ravichandran of endurance international. the best of "bloomberg west" will be right back. ♪ cory: this is the best of "bloomberg west." i'm cory johnson. bmw is counting on technology to help it keep its lead against rivals like audi and mercedes in the luxury market. bloomberg's matt miller caught up with the ceo ludwig willisch on the floor of the new york auto show. matt: i'm here and i thought it would be interesting to talk about the high-tech i-cars i-line that they have out. ludwig is a race car collector and racecar driver. you happen to drive the i3. when you told me that i couldn't believe it. you said it's got the bmw dna in it. ludwig: absolutely. that is why i drive it. the way it drives it's so agile it's light, and it's great as far as acceleration is concerned. that's all you need for a commute. this is what the car is meant for. bmw is true to its brand. matt: so the i3 is an all electric car. you can get it with a range extender but that doesn't drive the axel. it's completely green in that sense. ludwig: it is. it's green in the sense it's emission free. but we think it's also very important that the whole production is very sustainable. we start producing the carbon fiber in moses lake, washington, with hydro power. i.e. we just use water to produce it. we don't have any electricity outside of our own plant necessary. then the car is built in germany with wind power, so the whole production cycle, we also use about half of the water we would use otherwise, so the production is much more sustainable, much more emission-free than anybody else can produce a car, which we think as far as the carbon footprint is concerned, really important if you talk about sustainability of an automobile. matt: i have yet to drive the i3 myself. i have had the pleasure of driving the i8, and it is shockingly amazing. you do not expect it to be as good as it is. the grip is incredible, the way it lays down power is so smooth and linear. and this is a concept that i think your competitors are finally catching on to. the fact that you can have this hybrid green power train and still have so much power. i mean, it's almost like you feel whatever the opposite of green is, but you're still doing something good for the environment. ludwig: absolutely. it's the best of two worlds. the stunning looks of the super car. it's the performance of the super car. you can even sit four people -- at least on a shorter journey -- and you have more than 70 miles to the gallon. i mean, this is something that hasn't been accomplished by anybody else. again, it's the sustainable production method that really makes the car stick out as far as sustainability is concerned. matt: what do you think is the future of bmw power trains? in your regular, in the 3 series, in the 5 series, are we going to see electric power alongside gasoline and diesel engines? ludwig: we will. we will have plug-in hybrids for all the major models, and that's the future we think that you will be able to do both. you drive electrically in the city, but use the conventional drive train for the freeways. matt: what about the future of connectivity? i mean, i think the i-drive is the best system as far as infotainment systems. but this in-car tech is being more important especially in silicon valley. where is bmw heading with that? ludwig: very clearly, and it is not only in silicon valley. people are interested in getting more connectivity to get information at their fingertips that they want to have while they're driving, but it's also about having some little helpers like self-parking. whenever it's not so much fun to drive a bmw, electronics kick in and help you. that's what it's all about. matt: obviously the ultimate driving machine is the slogan i grew up with. and when i get behind the wheel of a bmw i want to drive myself. but are we going to see the day when there's an autonomous bmw? ludwig: maybe if you're really in a bad traffic situation you will be able to engage autonomous driving because it's no fun. you can then review e-mails or read a book, whatever you want. but as soon as you want to drive again, you decide yourself. it should always support the driver but don't dominate the driver. cory: that was our matt miller with bmw's north american ceo. the best of "bloomberg west" will be right back. ♪ ♪ cory: this is the best of "bloomberg west." i'm cory johnson. it is one of the most talked about app debuts in recent memory. we are talking about the live streaming app meerkat. four weeks after launching, it raised $14 million in funding and quite quickly. the app lets users live broadcast videos and comments from their smartphone to twitter. they can't replay or save the video. it is snapchat meets facetime, meets vh1 pop up video, all that and more. and the best is though could they already be behind it? it has fallen from number 140 to 523 last week. i put that very question to meerkat's ceo ben rubin. ben: it has not that early in our venture, actually. we have been in the live video space for more than 2.5 years now. we've known success and failures before. one thing that is very interesting to see about meerkat is that it was actually able to unlock behavior of live-streaming behavior. like people that wouldn't live stream otherwise are now live streaming. that is, for us, a success. cory: so we're meerkating right now as we're having this conversation. over here, gil martinez is holding -- is that your phone? ben: yes. cory: and there we are. and so if people want to watch this kind of a broadcast while it's happening, what do they do? they log on to -- is it the app, or twitter? ben: the moment you go live, it is live-stream published on twitter. everyone who follows you gets a push notification. and people can watch you from web or from phone. cory: and they can go to my twitter account or your twitter account? we are both on there right now being discussed. ben: yes. if you are commenting on that, that will be shown on your twitter account. yes, that's correct. cory: so talking about how that business works. right when you launched, first you launched that sxsw, right? ben: no. we launched at product hunt, actually. we put it on -- it was just a side project. the company -- we had a product of live video and we closed that. it was maybe 400,000 users we had. we shut it down and went to this exploratory mode when we said we're going to release a very simple product every two months. and one of them was meerkat. the first thing that we had. we had, like, six experiments. the first thing that we had was meerkat. and we put it on product hunt on the 27th of february. and that was -- we did not plan to do anything at south by, but the community was extremely supportive. cory: there's also the sort of search for the next big thing. twitter was first launched at sxsw. so ever since, people have been trying to find the next twitter. then -- ben: but like twitter, twitter was out nine months before sxsw. but i think there is a cultural readiness, there is a technological readiness. cory: crown the next king? ben: no. we don't look at it as kings or queens or anything. it's more about -- is the technology now allows a different behavior that could be impactful in a meaningful way? right? and if we can allow people to participate, a large audience to participate in happening by removing friction from going live, by removing friction by watching in different places in the world, and everyone can watch live stream from their pockets, basically, or stream live video from their phones in their pocket, that means that the cost to go live and to distribute to a large audience is literally zero now. cory: i wonder what people are commenting right now as we look at the comments as they come across. but i also wonder, instantly twitter announces they're going to kind of pull the rug out from you in being able to map the social graph on top of whatever that social graph is, but also twitter announcing a competitive product. is that a sign of success to you? ben: yes. i do not know if it is a sign of success. definitely for the space, a sign of success. for us, twitter was always a launching pad. we didn't expect to be this like -- to be so much, to be receptive -- like for people to receive us so well in the beginning. and obviously we understand twitter and the business decision that it's making. and it's also a good, good sign to see that the company that is very smart with a great product like twitter is doing steps in this direction. cory: that was meerkat ceo ben rubin. for more on the battle between meerkat and twitter's periscope, i spoke with product hunt's ryan hoover. ryan: meerkat, periscope, they launched at product hunt. it is a place for people to discover new apps and technology. cory: so to me the launch of meerkat and twitter is on top of it not letting everyone gravitate to them, what do you make of that? and then launching a competitive product? ryan: it is interesting that meerkat, periscope, and many others are in this live streaming space at the same time. this happens frequently. it's not that twitter is copying them or vice versa. and it's just these, the change of behavior and technology is i think forcing people to look more at live streaming as an actual medium. cory: what are the inspirations? is it facetime or snapchat? ryan: in some ways, snapchat created this behavior of people being willing to share their face and themselves in public. and then there's of course technology, bandwidth, the screens are better on phones. everyone has this live streaming device in their pocket nowadays. cory: when i look at businesses and try to figure out -- you can have the best idea in the world. i do not try to figure out who is going to succeed. you're not going to win. ryan: right. cory: but i wonder, when you look at businesses that are marketplaces versus businesses that are not, they get targeted by competitors. the new york stock exchange, it took decades to happen. ebay has a lock on online auctions still despite the efforts of some well heeled competitors like amazon. is there room for lots of different services like this, or will everyone go to where everyone is because that's who you're sharing with? ryan: there's certainly a lot of room in the live streaming space, and there's different niches that appear. twitch tv, which was purchased by amazon recently -- it is focused on live streaming of video games. cory: it is huge. ryan: yes, it is massive. meerkat and periscope are extremely early. who knows how they will converge or diverge over time? their audiences may be different in the long run but it's so early. meerkat launched months ago, periscope last week. cory: i guess i wonder, is the existing social graph like facebook knows who my friends are and i curate that by kicking people off or meeting new people. linkedin has a different graph of me. twitter a third graph. am i going to have -- but there's a lot of overlapping. but are -- is there an expectation of these businesses that people will have dozens of social graphs or that the couple of companies who own that will own everything on top of that? brian: that's a good question. meerkat launched using twitter's graph. and they have leveraged that and they are building out other ways to build a graph through their follow button and some other things. i think the tv graph is very relevant to maybe a twitter but it could be different as well. the people you watch on tv are different. cory: that's product hunt's ceo ryan hoover. the best of "bloomberg west" will be right back. ♪ cory: this is the best of "bloomberg west." i'm cory johnson. over the holiday weekend chances are you might be drinking some wine. it is easter after all. vivino is an interesting young business. it lets users catalog and purchase their favorite wine. even has a data base of over 300,000 restaurant wine lists with reviews. we got the details from heini zachariassen. vevino's ceo and founder. heini: we think that people should drink what they like. and a lot of cases people don't know what they like. cory: as long as they're not driving. some people listen to the show on the radio. i do not want to be in their car right now, think they can bust it open. heini: please wait until later. so people might know that i like this particular wine but they don't know what it is. so with us you can actually see what types do you like what do you not like and so on. you learn more about your own taste. cory: the way it works is with the smart phone you snap a picture of the label. what happens on the back end? heini: it ships that picture to our servers and compares to our massive data base of wine images. we have 130 million pictures of wine labels. compared to that, few seconds, comes back to you with a rating, review, everything. and if your friends have the wine, cory had this wine, rated two stars, did not like it whatever we have on your social network. cory: back to this discovery. i know in the wine business, it's so hard, the experience of going to a wine store and buying wine is fairly unique in retail where the retailer has so much influence over the purchasers, maybe more than any other industry. does this start to change that model a little bit? heini: i think it's going to move people towards where they start learning more about themselves. when you talk about retail another thing is actually restaurants. we built this wine list scanner. we take a photo of the wine list itself. we go through every single line and put a rating, which makes the experience a lot easier. cory: so i look at the wine list, say i don't know what to get here. i am not a wine snob. the staff is laughing. but it literally rates it on the phone? heini: yeah. we take the picture and put the rating right next to every single wine, which helps you make a better decision. samir liaise -- someliers are great but they don't know you as well as vivino knows you. cory: your revenue model is what? heini: we're going to help you find your next wine so we're going to point you towards retailers that sell this wine. it is sort of an e-commerce play. we are never going to ship wine directly. we'll have sellers. cory: will you get paid that way or piece of the purchase? heini: it could be both actually. exactly right. cory: i would take a percentage. heini: yes. when cory's buying we definitely want a percent. cory: but is that how the business is going to work? heini: yes. kind of more of a pay per click in the beginning but percentage in the long term. cory: and finally, where do you see your biggest growth? what's the demographic? heini: there's no doubt about the millenials are coming in now. 30 million say that regular wine drinkers. and they have a different way of thinking because they are more open to trying new things. they're used to going to restaurants and checking yelp before. now they're checking vivino before drinking a bottle of wine. cory: that was heini zachariassen of vivino. that does it for this weekend's edition of the best of "bloomberg west." we will see you next week. ♪ ryan chilcote: what began in crimea is now playing out in eastern ukraine. this is utter destruction. i mean, i have been in demolition sites, war zones. i have never seen anything like this. but the outcome here is far less certain. we are going to stay low because we just heard a burst of gunfire. war has returned to europe. right on the outskirts of donetsk, and as you can hear there is a significant battle underway. it is west versus east. and it is slav versus slav. we have come to the front lines and gone into the mines. this is not a good place to go if you are claustrophobic.
kleiner's defense attorney in this case. this is her first interview since the verdict. lynn: great to be done. it's great to be back in my office. great for kleiner to have prevailed on everything. cory: did you have a sense during the trial of how much it was being followed? the jurors were stunned when they walked out and saw all the cameras there. lynn: it was overwhelming. just a tidal wave of reporters. occasionally people would post tweets on my facebook page or email me. i followed a few people but i didn't have a sense of the whole scope of it until the end. cory: what made this case unusual? it's got an unusual amount of coverage. an unusual amount of -- it was supposedly having an unusual impact on silicon valley. lynn: it's not going to happen. cases don't change industries. that's not what they're about and not what they do. but this case was the right issue at the right time. wrong case, wrong forum. very hot issue obviously in silicon valley and people feel passionately about it. but the media coverage made everything different. cory: how so? lynn: you could feel it. you could hear comments in the audience, the jurors were distracteded by the clacking of the keyboords. you come out and have cameras in your faces. it was a very different experience for a trial lawyer. cory: did that help you? lynn: it didn't help. it's a distraction you have to look beyond, keep your eyes on the prize. and that's what we did. you're always worried what is the press reporting, if the jurors are reading it. but this jury seemed to be very careful about following the judge's admonitions. cory: one of the things i've read and heard about you is that you're very aware of what the jury is doing at all moments in the courtroom. and when you're walking out or when the jury is walking out. lynn: you have to watch the jury. you have to see if they're having a bad reaction to you. that's important. but i wouldn't say staring at them all the time. it's just important for a trial lawyer to try and read how you're coming across and how they're reacting to you. cory: do you believe there's a culture of sexual discrimination in silicon valley in venture capital? lynn: i don't see it. certainly not in the clients i work with. i'm not sure they would hire me if there were. i suppose you could be really cynical and say that's why they hired me. but i don't see it. i hear it all the time about big law and i'm a senior woman partner in a big law firm. and i don't see it there either. so part of my job is to find out when it's not there. maybe that prejudices me in a way. cory: but it sounds like you're saying it's not there. lynn: i don't think it's there. cory: the narrative has been the opposite. lynn: definitely. the numbers are bad. that has to change. and when numbers increase, cultures change. cory: so they say venture women capitalists of women were down. i've talked to lawyers who say why isn't it 50/50? lynn: because there weren't women in the pipeline. and as the professor, who is an expert in the trial testified, venture firms have been shrinking in the past few years. so that's going to hinder hiring. what kleiner did made it number one in the nation. but there aren't women entrepreneurs. there aren't women in science and tech. and unless the culture fixes that, unless we put women in math and science in ways that we're not doing now, the numbers are not going to change. cory: so ellen pao lost her case, but did she ultimately win by bringing these issues to light? sarah: the things the jury were asked to rule on were incredibly narrow, specific dates that were boxed in. and so what we heard during the trial was sort of a referendum on pao's years. but what the jury was deciding on were snippets of that, and does it meet very particular legal standards. and i think we've seen other cases where public opinion can differ from what the jury decides. there's been a lot of that particularly most recently around ferguson and the "i can't breathe" in new york. so that's definitely something that does happen. and i do think that you can still look at something as a learning experience and take something to gain insight from even if they don't win the case. cory: can i acknowledge that there's racism and that horrible things happened in missouri but they didn't happen here? sarah: of course. i was just using that as an example in terms of where public opinion goes one way and the court decision goes another. cory: when you look at this case, is this case -- we're going to remember this as an important case? i was surprised to see it in the cover of the "new york times." joan: i was not. i think it was a very important case. for example, i certaintly don't think that going forward you're going to have a honey pot like kleiner perkins not able to find its eeo policy. cory: do you think? joan: i think. yeah. and not have a situation where a woman isn't invited on an important networking event like that ski trip or the dinner. there were a lot of factual disputes here. also, kleiner perkins got lucky in that in some ways ellen pao was not as sympathetic a plaintiff. but if she had been a different kind of plaintiff, if this had been a different kind of a job for example, a job where there were more clear-cut requirements, this could have gone very differently. and remember that the court ruled that kleiner perkins was potentially on the hook for over $140 million of punitive damages. now, they dodged the bullet. but going forward, i think practice is going to be very very different both in venture capital and in tech more generally. cory: so we've all read a lot about the case. we know the case a little bit. the people who knew it maybe the best, the jurors, were kind enough to speak to us right after the verdict was announced. check this out. juror: when you see comparable or similar feedback, meaning areas that they need to improve, yet one gets promoted and moves to the fast track and the other is held back in a particular role, then to me it served the -- it validated the claim of being discriminated against on the basis of gender. juror: based on testimony we heard, it probably had more to do with personability and her ability to get along with people. her personality. and a lot of people can be very analytically driven, which it sounds that's what she was. that's what made her great in the chief of staff role. but we felt in the long run that probably that wasn't what her role was going to be, just based on the reviews and the e-mails that we saw. cory: so there was the two sides of the case. and the latter side is what carried the day there. but when you look at this, do you think that this is just the right issue, the wrong case? sarah: yeah. i think that it's pretty hard to listen to some of those stories, and as well as some of the other stories that came out over the past couple of years and women in tech, and not think that's something's not amiss. so i do think this is an issue that's not going away. it's something that almost every woman who works in venture capital has experience of. it is pretty toe curling talking about billion-dollar funds. cory: is it worse in finance or business? not that finance isn't business but it's its own peculiar thing. sarah: i think that one of the things about finance's alternative assets is, deals can take years to come to fruition. and even after they come to fruition, who knows if they're successful or not? so during that time, you are based on your reputation and who you know and the perception of success, rather than in business, where you have quarterly earnings that tell you whether or not you are doing a good job. so i think women can do better in an analytical environment where they can prove that they're good, as opposed to needing to bro out on a strip club bus or whatever it may be. cory: when we look at this case do you think that there will be another case like this? we've heard about class action suits on these same issues. this could have a much wider reaching effect. joan: i mean, during the trial there were two more lawsuits filed against tech companies. that may be a coincidence. i suspect it's not. what we saw in this trial is that although there was a lot of evidence that cut in favor of kleiner perkins, there was also very, very clear evidence of gender stereotyping of the kind that is often encountered by asian-american women. for example, in a recent study one of the findings that we had is that asian american women are often faulted for being too passive. a word that literally came up in the kleiner perkins trial. and that asian american women walk a very, very narrow tightrope between being seen as too feminine to be competent too passive -- too quiet, she was called. but also too masculine to be likeable. she was called both passive and demanding. that is a pretty narrow tightrope. and this is really a gender bias training to the world. so i think it has changed the conversation in a permanent way. cory: we'll be right back. ♪ cory: this is "the best of bloomberg west." indiana's new so-called religious freedom law has become a huge issue in the technology and business industry. after the law, tech companies spoke out in protest. more than a dozen tech leaders signing a letter. salesforce is limiting employee travel to the state, as are some city and state governments. cloudera pulled out of a big data conference. i spoke with mike olson just hours after indiana governor mike pence vowed to fix the law. mike: i think it's encouraging but we would like to see exactly what the legislature and the administration intend. cory: what is it about this law that offended you guys so much that you very quickly moved to speak out against it? mike: several things. first of all, equality is a constitutional right. very simple, very direct. on that basis, this law was a problem. not just on that basis though. we believe that equal rights for all citizens, including lgbt citizens, are fundamental. that it is good for business. and that it is the morally right thing for us to stand up for that class of citizens, as for others. there were lots of problems with the indiana law. we're happy to see the governor begin to address some of them and we're looking forward to seeing more. cory: i was really struck, i think all of us have been struck by how the tech community in particular have jumped out in front of this. marc benioff making a lot of loud noises, as marc benioff is prone to do. but your company, yelp, apple, really getting out there. angie's list is an indiana based company really quickly speaking out about this. why do you think tech companies have taken the lead here? mike: i think mark did a great service in focusing attention on this law. this is different from the laws in many other states. that's not to say those laws don't have problems, but this one is especially egregious. by focusing attention and by giving the tech community, which swings a lot of revenue, which has a lot of influence among businesses in indiana, he gave us the chance to affect the course of this law. and, i hope, to lead to its revision or repeal. cory: mark, it certainly did that. also, tim cook, at the biggest company in the world, and the biggest tech company, talked about all the other states that have similar laws. have you gone through and thought about what this means to the other states? have you put yourself in position where you're going to have to speak out or decide whether those laws are acceptable to do business in those other states that have laws? mike: it's a good question but it's not just a cloudera question. i think one of the services that mark and tim and the tech community provided here was to focus attention on all of those other laws. there are some substantial differences and we haven't read all of the statutes in detail. but i think now that there is a national conversation underway about what is permissible, what is written into legislation, and what that ought to mean for businesses like ours. i think it's a very helpful development and i look forward to continuing that conversation and to finding more ways that cloudera can be supportive of rights of all people. cory: i want to play a sound byte from mike pence as well because he talked for quite a bit and had some interesting things to say. check this out. governor pence: i don't believe for a minute that it was the intention of the general assembly to create a license to discriminate or a right to deny services to gays lesbians or anyone else in this state. and it certainly wasn't my intent. cory: do you believe that, that it wasn't his intent? mike: look, i'm not going to call into question what the governor intended. what i will do is highlight what the governor and the legislation did. and that is, they wrote a law that legalized discrimination against classes that ought to be protected, that certainly are in federal law and in other states. the state of indiana lacked those protections. if this outcry leads the state to write reasonable protections into its code, then i think we've accomplished something pretty great. and we look forward to seeing what the governor does in that regard. cory: before we congratulate ourselves for just the tech community, even in indiana we saw a huge protest. the indiana star, "indianapolis star," the newspaper there in indiana, not known as a bastion of liberalism, a really powerful full cover saying, fix this now. religious freedom restoration act, taken a really powerful stance on this. i wonder what this means though, if editorials can do what editorials do. but i wonder if the voice of business and the almighty dollar speaks louder when businesses such as yours, mike, decide to pull business away from that state. mike: look, a couple things. first of all, i believe that most people in indiana believe in equality and want civil rights to be enforced for everyone. i believe that to be true. when we pulled out of the indy big data conference, we weren't directly harming the governor or the legislature. we were, frankly, taking an economic toll on a bunch of business leaders who may not share the views and opinions of the legislature of the administration. we harmed ourselves. we had an opportunity to go and engage with a bunch of prospective customers and others, and that was costly for us. we believed that it was the right thing to do. by encouraging moderate voices in indiana to speak up in support of civil rights, i think we've had some effect as a broad community in driving the dialogue there in the right direction. again, i am really pleased to hear some encouraging words out of the governor this morning and i really look forward to those words turning into action that makes a difference. cory: mike olson, cloudera's chief strategy officer. we'll be right back. ♪ cory: this is the best of "bloomberg west." so, what if target executives had been able to identify the card hackers? the security company tanium allows companies to track everything connected to a network, and executives can even shut down these end points in just 15 seconds. they raised $15 million to follow the firm's initial investment of $90 million. the board member is joining the board also joined me here in the studio. steven: the first thing that's really unique is the instant response across your network. like, how many devices are connected to your home internet? most people go one, two. cory: if i think about it i've probably got a couple dozen. steven: but you don't know the number. but imagine a global company. how fast can you figure out which ones are connected, what they're running? that's what tanium lets you do in 15 seconds. so you have a million different cash registers, laptops, figure out what's going on on all of them in 15 seconds. cory: is this a big data solution? it's been a focus of your firm. but all that information just all those ip addresses. the example of this company, the lights above us are ip controlled. steven: that's what's so fascinating. because in the world of security, what matters the most is getting the most up-to-date information. it is not a data solution. it is a communication solution. in the days of system management, the tools were about a database. that is walking around your house, writing it down. tanium brings a combination of systems management and security to one product, to give you a 15 second answer. cory: does it work like the spiders to do the web searches like google, where they would go out and ping the internet and collect information? steven: the way the tools used to work is, they would ask all computers all at once, what is going on? and wait for them to all answer. it would take a lot of special network hardware and databases. this says to every computer, look to the right and left of you, find out what is going on and we will bundle it up and send it back, like a buddy system. cory: i get that. this is fascinating. how does that response to types of hacks we are seeing now? the types of hacks are changing, not least because we are seeing state-sponsored hacker attacks the sony attack by north korea. steven: the interesting thing about breaches or infiltrations today is they are multistep. they often involve what looks like a legitimate use of something that is going on. and they involve a combination of programs and networking. cory: we have seen a lot of cases where somebody gets into the network and stays there for months, or even a year. steve: sometimes they have legitimate credentials, and they find a program that talks to a program they plant over here which starts to direct information. tanium lets you have this complete view of information, of what is going on in your network, which machines might send a certain packet over the network, which machines are running a certain program, instantly. when you do understand a breach is going on, you are often given a pattern, like look for this pattern on different machines, or look for this network traffic, but you have no way of knowing at all. cory: i don't understand. if some of the attacks are slow, why does instantaneous detection matter? steven: the breaches are using these known infiltrations, but in certain arrangements -- they do take time. the problem is, you cannot figure out what is going on. once you do figure out something is happening, you need to shut it down instantly. that is where tanium's response comes in. the breaches, you get a memo from a security company telling you to look for things on the network area the problem is, today, there is no way to do that. these memos pileup in the inbox of every security professional and it takes days to go through each one. with tanium, it takes seconds. you can rifle through them really quick. the existing tools are all about trying to be predictive and block. those play a role, but most of the time, you cannot predict what is going on in a network, and you have to just react and respond. cory: we will be right back. ♪ cory: you are watching the best of "bloomberg west," where we focus on the best of innovation and technology. i am cory johnson. godaddy went public this week. the web hosting company is well known for its sexy commercials featuring danica patrick. it started trading wednesday on the new york stock exchange, shares surging. here is godaddy's ceo blake irving talking about the company's target customer. blake: we help somebody take their idea online and run their business of a digital entity and that is our business. cory: so public again, godaddy sporting $4 billion, but also lost money last year. for more perspective on this tough business, i talked to one of the biggest competitors, hari ravichandran of endurance international. hari: it depends on the segment of the market you compete in the domain element of the marketplace, the product is similar no matter who you buy from. it is intensely competitive. if you expand the landscape out beyond the domains to include web presence, to include mobile apps, web building, it is competitive, but tailwinds in this market have been pretty amazing. a number of small businesses wanted to come online, want to use these services. there is a real seachange in this market, i would say, over the last five years even, so that is benefiting everybody including ourselves and the folks over at godaddy and other places. cory: yeah. so what is that seachange? when i read the prospectus at godaddy -- it seems they are still focused on desktop and laptop. they acknowledge mobile, but it does not seem to be their focus. hari: the pivotal happened when social got really popular. when you think of small business, even somebody who does not have a web presence or even a domain, when their customers start asking them where exactly they can find them online, that really started this sort of movement of these small businesses that were off-line starting to think about hey, i need to be online, i need to be interfacing with my customers online. i need to be able to talk to them online, which meant they had to go out and start getting a web presence. i think that has been the real crux of it is these off-line businesses wanted to come online because it drives value for their business. what we have done somewhat different is, we do not lead with branding or off-line marketing. we market almost entirely online and we start customers out with a web presence, so our profile is different. our bottom line cash flow is very comparable to godaddy, but our top line is not as high because we start with a higher price point. whether the strategy worked or not, clearly they have a great scaled business that is growing nicely. pivoting now to the next stage of evolution to get more people into web presence and additional products is a pretty smart strategy, i think. cory: the next domain name has been a carrot at the end of the state in your industry. the bold thesis has been everyone who owns the dot com name, cocacola.com and cocacola.net, they will run out and want cocacola.berlin or whatever. but when i look at the results of some of your competitors, for example, web.com, they have not benefited from that. that movement has not really happened. is that a shimmer out there, is that business ever going to pick up? hari: over time this is going to get better and create tailwind in the market because really in the domain market where we do not necessarily compete, what has been happening is a real supply-side imbalance where if you go in and look for a particular domain, eight out of 10 times you will find that is not available. somebody has already bought it you have to go to the secondary market and pay a lot of additional dollars to be able to get that domain. so somebody has a choice to -- cory: there are companies like web.com buying the domain before the customer wants it, incurring the cost. are the customers going to want it, i guess, is the question. hari: what has been happening with the new tle's, let's say you have a choice of cory.com for $5,000 or cory.abc or cory.xyz for a much better price. the bet that the market is making this over time, people will gravitate toward these newer tle's coming out because the price is more comparable. it is ill shaking out. all of the tle's out there today are still very niche. it is like .club, .nyc, .guru, .ninja. those are the ones that are already out through the auctioning process. what is going to happen over the course of this year and next year are more generic ones are going to come out. like dot web, that will be a popular one where people will say i can be part of that dot web revolution coming up. cory: that was hari ravichandran of endurance international. the best of "bloomberg west" will be right back. ♪ cory: this is the best of "bloomberg west." i'm cory johnson. bmw is counting on technology to help it keep its lead against rivals like audi and mercedes in the luxury market. matt miller caught up with the ceo ludwig willisch on the floor of the new york auto show. matt: i'm here and i thought it would be interesting to talk about the high-tech i-cars i-line that they have out. you are a race car collector and racecar driver. you happen to drive the i3. when you told me that i couldn't believe it. you said it's got the bmw dna in it. ludwig: absolutely. that is why i drive it. the way it drives it's so agile it's light, and it's great as far as acceleration is concerned. that's all you need for a commute. this is what the car is meant for. bmw is true to its brand. matt: so the i3 is an all electric car. you can get it with a range extender but that doesn't drive the axel. it's completely green in that sense. ludwig: it is. it's green in the sense it's emission free. but we think it's also very important that the whole production is very sustainable. we start producing the carbon fiber in moses lake, washington, with hydro power. we just use water to produce it. we don't have any electricity outside of our own plant necessary. then the car is built in germany with wind power, so the whole production cycle, we also use about half of the water we would use otherwise, so the production is much more sustainable, much more emission-free than anybody else can produce a car, which we think as far as the carbon footprint is concerned, really important if you talk about sustainability of an automobile. matt: i have yet to drive the i3 myself. i have had the pleasure of driving the i8, and it is shockingly amazing. you do not expect it to be as good as it is. the grip is incredible, the way it lays down power is so smooth and linear. and this is a concept that i think your competitors are finally catching on to. the fact that you can have this hybrid green power train and still have so much power. i mean, it's almost like you feel whatever the opposite of green is, but you're still doing something good for the environment. ludwig: absolutely. it's the best of two worlds. the stunning looks of the super car. it's the performance of the super car. you can even sit four people -- at least on a shorter journey -- and you have more than 70 miles to the gallon. i mean, this is something that hasn't been accomplished by anybody else. again, it's the sustainable production method that really makes the car stick out as far as sustainability is concerned. matt: what do you think is the future of bmw power trains? in your regular, in the 3 series, in the 5 series, are we going to see electric power alongside gasoline and diesel engines? ludwig: we will. we will have plug-in hybrids for all the major models, and that's the future we think that you will be able to do both. you drive electrically in the city, but use the conventional drive train for the freeways. matt: what about the future of connectivity? i mean, i think the i-drive is the best system as far as infotainment systems. but this in-car tech is being more important especially in silicon valley. where is bmw heading with that? ludwig: very clearly, and it is not only in silicon valley. people are interested in getting more connectivity to get information at their fingertips that they want to have while they're driving, but it's also about having some little helpers like self-parking. whenever it's not so much fun to drive a bmw, electronics kick in and help you. that's what it's all about. matt: obviously the ultimate driving machine is the slogan i grew up with. and when i get behind the wheel of a bmw i want to drive myself. but are we going to see the day when there's an autonomous bmw? ludwig: maybe if you're really in a bad traffic situation you will be able to engage autonomous driving because it's no fun. you can then review e-mails or read a book, whatever you want. but as soon as you want to drive again, you decide yourself. it should always support the driver but don't dominate the driver. cory: that was our matt miller with bmw's north american ceo. the best of "bloomberg west" will be right back. ♪ cory: this is the best of "bloomberg west." i'm cory johnson. it is one of the most talked about app debuts in recent memory. we are talking about the live streaming app meerkat. four weeks after launching, it raised $14 million in funding and quite quickly. the app lets users live broadcast videos and comments from their smartphone to twitter. they can't replay or save the video. it is snapchat meets facetime, meets vh1 pop up video, all that and more. and the best is though could they already be behind it? it has fallen from number 140 to 523 last week. i put that very question to meerkat's ceo ben rubin. ben: it has not that early in our venture, actually. we have been in the live video space for more than 2.5 years now. we've known success and failures before. one thing that is very interesting to see about meerkat is that it was actually able to unlock behavior of live-streaming behavior. like people that wouldn't live stream otherwise are now live streaming. that is, for us, a success. cory: so we're meerkating right now as we're having this conversation. over here, gil martinez is holding -- is that your phone? ben: yes. cory: and there we are. and so if people want to watch this kind of a broadcast while it's happening, what do they do? they log on to -- is it the app, or twitter? ben: the moment you go live, it is live-stream published on twitter. everyone who follows you gets a push notification. and people can watch you from web or from phone. cory: and they can go to my twitter account or your twitter account? we are both on there right now being discussed. ben: yes. if you are commenting on that, that will be shown on your twitter account. yes, that's correct. cory: so talking about how that business works. right when you launched, first you launched that sxsw, right? ben: no. we launched at product hunt, actually. we put it on -- it was just a side project. the company -- we had a product of live video and we closed that. it was maybe 400,000 users we had. we shut it down and went to this exploratory mode when we said we're going to release a very simple product every two months. and one of them was meerkat. the first thing that we had. we had, like, six experiments. the first thing that we had was meerkat. and we put it on product hunt on the 27th of february. and that was -- we did not plan to do anything at south by, but the community was extremely supportive. cory: there's also the sort of search for the next big thing. twitter was first launched at sxsw. so ever since, people have been trying to find the next twitter. then -- ben: but like twitter, twitter was out nine months before sxsw. but i think there is a cultural readiness, there is a technological readiness. cory: crown the next king? ben: no. we don't look at it as kings or queens or anything. it's more about -- is the technology now allows a different behavior that could be impactful in a meaningful way? right? and if we can allow people to participate, a large audience to participate in happening by removing friction from going live, by removing friction by watching in different places in the world, and everyone can watch live stream from their pockets, basically, or stream live video from their phones in their pocket, that means that the cost to go live and to distribute to a large audience is literally zero now. cory: i wonder what people are commenting right now as we look at the comments as they come across. but i also wonder, instantly twitter announces they're going to kind of pull the rug out from you in being able to map the social graph on top of whatever that social graph is, but also twitter announcing a competitive product. is that a sign of success to you? ben: yes. i do not know if it is a sign of success. definitely for the space, a sign of success. for us, twitter was always a launching pad. we didn't expect to be this like -- to be so much, to be receptive -- like for people to receive us so well in the beginning. and obviously we understand twitter and the business decision that it's making. and it's also a good, good sign to see that the company that is very smart with a great product like twitter is doing steps in this direction. cory: that was meerkat ceo ben rubin. for more on the battle between meerkat and twitter's periscope, i spoke with product hunt's ryan hoover. ryan: meerkat, periscope, they launched at product hunt. it is a place for people to discover new apps and technology. cory: so to me the launch of meerkat and twitter is on top of it not letting everyone gravitate to them, what do you make of that? and then launching a competitive product? ryan: it is interesting that meerkat, periscope, and many others are in this live streaming space at the same time. this happens frequently. it's not that twitter is copying them or vice versa. and it's just these, the change of behavior and technology is i think forcing people to look more at live streaming as an actual medium. cory: what are the inspirations? is it facetime or snapchat? ryan: in some ways, snapchat created this behavior of people being willing to share their face and themselves in public. and then there's of course technology, bandwidth, the screens are better on phones. everyone has this live streaming device in their pocket nowadays. cory: when i look at businesses and try to figure out -- you can have the best idea in the world. i do not try to figure out who is going to succeed. you're not going to win. ryan: right. cory: but i wonder, when you look at businesses that are marketplaces versus businesses that are not, they get targeted by competitors. the new york stock exchange, it took decades to happen. ebay has a lock on online auctions still despite the efforts of some well heeled competitors like amazon. is there room for lots of different services like this, or will everyone go to where everyone is because that's who you're sharing with? ryan: there's certainly a lot of room in the live streaming space, and there's different niches that appear. twitch tv, which was purchased by amazon recently -- it is focused on live streaming of video games. cory: it is huge. ryan: yes, it is massive. meerkat and periscope are extremely early. who knows how they will converge or diverge over time? their audiences may be different in the long run but it's so early. meerkat launched months ago, periscope last week. cory: i guess i wonder, is the existing social graph like facebook knows who my friends are and i curate that by kicking people off or meeting new people. linkedin has a different graph of me. twitter a third graph. am i going to have -- but there's a lot of overlapping. but are -- is there an expectation of these businesses that people will have dozens of social graphs or that the couple of companies who own that will own everything on top of that? brian: that's a good question. meerkat launched using twitter's graph. and they have leveraged that and they are building out other ways to build a graph through their follow button and some other things. i think the tv graph is very relevant to maybe a twitter but it could be different as well. the people you watch on tv are different. cory: that's product hunt's ceo ryan hoover. the best of "bloomberg west" will be right back. ♪ cory: this is the best of "bloomberg west." i'm cory johnson. over the holiday weekend chances are you might be drinking some wine. it is easter after all. vivino is an interesting young business. it lets users catalog and purchase their favorite wine. even has a data base of over 300,000 restaurant wine lists with reviews. we got the details from heini zachariassen. vevino's ceo and founder. heini: we think that people should drink what they like. and a lot of cases people don't know what they like. cory: as long as they're not driving. some people listen to the show on the radio. i do not want to be in their car right now, think they can bust it open. heini: please wait until later. so people might know that i like this particular wine but they don't know what it is. so with us you can actually see what types do you like what do you not like and so on. you learn more about your own taste. cory: the way it works is with the smart phone you snap a picture of the label. what happens on the back end? heini: it ships that picture to our servers and compares to our massive data base of wine images. we have 130 million pictures of wine labels. compared to that, few seconds, comes back to you with a rating, review, everything. and if your friends have the wine, cory had this wine, rated two stars, did not like it whatever we have on your social network. cory: back to this discovery. i know in the wine business, it's so hard, the experience of going to a wine store and buying wine is fairly unique in retail where the retailer has so much influence over the purchasers, maybe more than any other industry. does this start to change that model a little bit? heini: i think it's going to move people towards where they start learning more about themselves. when you talk about retail another thing is actually restaurants. we built this wine list scanner. we take a photo of the wine list itself. we go through every single line and put a rating, which makes the experience a lot easier. cory: so i look at the wine list, say i don't know what to get here. i am not a wine snob. the staff is laughing. but it literally rates it on the phone? heini: yeah. we take the picture and put the rating right next to every single wine, which helps you make a better decision. samir liaise -- someliers are great but they don't know you as well as vivino knows you. cory: your revenue model is what? heini: we're going to help you find your next wine so we're going to point you towards retailers that sell this wine. it is sort of an e-commerce play. we are never going to ship wine directly. we'll have sellers. cory: will you get paid that way or piece of the purchase? heini: it could be both actually. exactly right. cory: i would take a percentage. heini: yes. when cory's buying we definitely want a percent. cory: but is that how the business is going to work? heini: yes. kind of more of a pay per click in the beginning but percentage in the long term. cory: and finally, where do you see your biggest growth? what's the demographic? heini: there's no doubt about the millenials are coming in now. 30 million say that regular wine drinkers. and they have a different way of thinking because they are more open to trying new things. they're used to going to restaurants and checking yelp before. now they're checking vivino before drinking a bottle of wine. cory: that was heini zachariassen of vivino. that does it for this weekend's edition of the best of "bloomberg west." we will see you next week. ♪