It will beevie says to salesforce what instagram was to facebook. Planning a new set of chips to outperform intel. What it means in the next generation of macs and more. First, u. S. Stocks dropped monday amid a surge in case of covid19. We are expecting to hear more about the Vaccine Distribution as states try to outline the doses, how many they will get, and one. Lets get to Abigail Doolittle with the latest on how it is played out in the markets. Breakdown that and what is to come this week. Abigail an interesting day we have had big gains on positive vaccine news and this week the vaccine will start to be distributed in the u. K. There is some expectation that will happen next week, but we had a bit of a down day in some of the indexes. We had strength is the nasdaq 100 and other techheavy indexes. The nasdaq 100 up a nice day in a row its longest daily winning streak going back to december, 2019. That strength, emily tesla the stock up 7. 1 , continuing to store up till it will be included in the s p 500 on december 31. It is now a 600 billion company. It is up more than 660 on the year really incredible. Will there be some sell the news action on december 31 when it is in the s p 500 . We had strength out of moderna. Netflix National News there, but there could be some anticipation around the new lockdown that is my seymours inscription growth. You were talking about might see more subscription growth. You are talking about ipos. It has been a banner ipo year. The ipo etf is tracking the action, up 25 , and as you said, airbnb set to go public thursday. They recently the ipo range, suggesting there is strong demand. The valuation might have 42 million once public. Doordash going public on wednesday. They also opt their name upped their name. This is not just a big ipo month, it is said to be a record december for ipos. Really incredible given what we have going on this week this year. If you look at to be sent the stocks are up more than 200 despite the s p. You have to ask the question, is that because conditions are so strong or is there a possibility that some in the know think the window could close in 2021 or early21 early2021. Something to think about. We are not just when you think about it. We will talk about that with our ipo reporter. Bloombergs Abigail Doolittle, thank you for that update. For more on the pipeline, december set to be the biggest ipos. Nd record for doordash and airbnb expected to start this week, both hoping to raise a combined 6. 2 billion if they price at the top of their ranges. I want to bring in bloombergs crystal tse. We expect doordash on wednesday. Airbnb on thursday. What do we know . Kristol we know they have both gotten seemingly good response. That is why they opt their range. Airbnb announced they are going to go for a higher range and doordash did the same thing late last week. Trending in are price and trade. The valuation it is probably not the highest they could go. Look at the regulations, it is still about 100 of what they already have. We could potentially see an even higher number. It is certainly critical to see a b airbnb in this position. At the highend of the range would be fairly in line with some sort of uplift given what they have seen on the private market. Doordash is an interesting story doubling their valuation to what they saw and a funding round just six months ago. How do the numbers back that up . Pinch hitterdashs is because of the lockdown they really have benefited. Because of the suburban footprint, there up as an industry. There are more lockdowns coming up, so it looks like doordash is going to continue, and that is why they are justifying this valuation. Then the same market could go ar airbnb because they are at low right now and if you buy into the ipo, you can see one travel resumes, when the vaccine comes, which is, i guess, potentially in the near future, you can see airbnb shares go up substantially. So, really, you can have both sides of the story, both based on where we are in the pandemic but this is,s, right now we have seen both of them have exceeded expectations, and they have a significant increase compared to their previous private valuations. Interesting. It seems like next week things are not going to slow down. Were also looking ahead to wish, especially on the hike ipo tech ipo pipeline. Crystal wish filed with their name. Der their parents it is a discounted online retailer. 17covid beneficiary billion evaluation not a small company. Is just about to go anlic we are expecting online game company, and then lets onlineich consumers pay for goods and installment. These are all consumerfacing Internet Companies could we are collecting all of them to come before christmas. Hopefully things quiet down a little bit at christmas. We think there will be some stuff coming between christmas and new years because it is the busiest december ever. We will cannot believe see ipos between christmas and new years, but it has been a year unlike any other other in some anyways. You are for the update. R, thews out of ube Ridesharing Service selling their self driving business to aurora and taking a stake in exchange for investing 400 billion in our laura. They will get a 26 ownership stake. Sources say it will create a larger competitor to the leader in the field, alphabet, and it is a big surrender for uber, which it made a big bet on self driving cars. Coming up and we hear from box aaron levie on the megadeal that is salesforce plus slack. That is next. This is bloomberg. That is next. This is bloomberg. Emily demand for the cloud has rocketed in 2020 amid schools closing and workforce is going remote. In last weeks megadeal with salesforce and slack i spoke to both companys heads for their take on what the deal means. You said it right, it is a marriage made in heaven. The key message is there is an opportunity for something nonlinear. The idea you can have this next generation, work from anywhere environment, runs on my phone, ipad amazing what is possible. Emily many are looking at this as a defensive move against microsoft, what is your response to that . Salesforce has never been stronger. Stewart pursley, i think we are better than microsoft. Emily not holding back there. Ceomore to come, i have box aaron levie, who has called slacks as instagram was to facebook. What you describe it that way . Aaron obvious it is an imperfect analogy but it was one of the most important m a deals have seen in many years, maybe ever in Enterprise Software. I think slack joining forces with salesforce will completely transform this part of the industry around the future of work and productivity software, and what slack really brings salesforce is this modern operating system for knowledge work where you can connect the front office, back office, customers, partners, and have a common interface to be able to communicate and collaborate. I think it is very transformational for salesforce, exciting for slack and great for the ecosystem where slack is created an open platform that more software can plug into a create a new experience for customers. Think it is exciting all around. Will seees it mean we more cost consolidation in 2020 one in this space . It is funny bigger spotlight on what the future of work looks like, the future of data and workflows across this platform. I would anticipate certainly more m a next year. I do not know if it is an. Nusually high period what we are seeing is a more general awareness that Enterprise Software is bigger than ever, markets are bigger than ever and there are more disruptive platforms and ever. That could cause a bit of a frenzy were companies do want to join forces and be able to go after these markets in a bigger way. Emily but i wonder if given that we are seeing record potentially record multiples, the market keeps going up if that slows the consolidation down. Aaron certainly, you have to be in a position like marc benioff where he is able to make longterm bets on Market Trends and pay the premiums that are necessary out there. C is uniquely able to do that. He has called these trends correctly if and almost every single stage if not every stage of the cloud. Not everyone can do that. It might be one point of friction for these types of consolidation for the future. Overall come with this is a bigger signal of is how big these markets are, even when we think about today, either in the u. S. Or other key markets for Enterprise Software were probably only about 10 of the way penetrated when you think about modern Software Like slack. You still have a significant portion of Technology Workers they need to be using these modern tools and the future. So, we are as far along as far along in this journey as many of us are in, we are still very early in the total potential in the market. Emily what do you make of the competitive threat of microsoft . You heard stewart say he is sick of talking about it, but it seems like the threat is real. Case, slacktewarts is a different kind of product. Slack is an open platform for bridging together different software, different medication with partners, external vendors, internal employees there is not a perfect, 121 comparison. It hasnt been that is complete unique and disruptive. I think, again, the recognition of the market is slack plus salesforce is able to go after this market in a much bigger way. We have to think about this market, not in the typical zerosome way that some other industries have evolved where is where if one company wins, the company loses. I think the markets are so large we will see growth from most segments of the software in the coming years simply because of how much of the world still has yet to be digitized. Processes of business that have not gone digital, the workloads that are still in legacy data systems not in the cloud for all of these reasons we are still in the very early days. I dont think we will see the same level of headtohead competition that maybe it seems like. That said, slack has made the contention that microsoft is anticompetitive by bundling some of its features with the office suite. I am sure this is something that box has been exposed to as well. Is that a complaint you would make in the same way . Aaron well, i think we are still very early in what should the Regulatory Environment look like for technology and consumer and clouds. What i think will happen in the next few years you need a stable environment in the u. S. Political system to a congress this. You need to create one of the modern rules of the road for the cloud and the internet and i do not know if it is something that looks like Net Neutrality but for Cloud Computing where you have certain rules about interoperability and the kind of choice the customers can have, but we are still in the early stages of trying to figure out what types of regulation, what kind of approaches do we have to open marketplaces in the internet age, and we are just very early and trying to define what that looks like. Emily now, we were just talking about how it has been or is becoming a record year for ipos shocking, when it did seem like the world was going to end six months ago curious how you are preparing for 2021, given that obviously there will be a new administration, new environment, potentially a new vaccine it is hard to understand why markets keep going up, and Company Still going out of the keep going out of the gate, but they do. Aaron for the kinds of companies emerging publicly, whether it is the recent ipos or upcoming ipos like doordash, airbnb, others, it is the excitement around Digital Technologies and the markets these companies play in, and the fact they have been building up disruptive platforms for coming in some cases, over a decade, and there is a lot of interest and excitement around what that future of these industries are the future of the data, hospitality, the future of ecommerce, food and grocery and arevery i think what you seeing is a significant habitat on the part of Public Markets for who are no who are the winners in the future economy where things move more digital there is a lot of capital available for investing in these types of businesses. You have to appreciate, given interest rates, where dollars are going to be going in terms of where did you get growth, and that is also a factor that is playing out. Going into next year it would be great to have the vaccine rolled out as quickly as humanly possible, be able to open up the economy even further in a safe and healthy way, and really see where what things are back to normal and what things have been transformed forever, and we will see a lot of those things that have been transformed forever. We shall wait and see. Aaron levie, ceo of box. There he didnt 2021 will bring us. Thank you so much. Coming up, 1 trillion that is how much the Global Economy is losing due to an increase in cyberattacks, but that is not the only impact of this type of crime. The ceo of mcafee will join us next to talk about what is at stake and how Companies Stay ahead. This is bloomberg. Emily as people around the world continue to work from home and often less secure networks, the Cyber Security firm mcafee says it is seen a large increase in the frequency and severity of cyberattacks on businesses. In a new report titled the hidden cost of cybercrime, they find that crime costs the Global Economy more than one trillion dollars, jumping more than 15 in two years. Joining me for more, mcafee Senior Vice President and ceo, steve grogan jilliam goodman steve grobman. How do you get to that number . Steve it is about the indirect costs, opportunity cost, brand reputation, impact to employee morale if you add up all of those costs as well as the cost to secure environments, that is where the model that who partnered with on this report got to that staggering 1 trillion number. So, how does the activity you are seeing now compared to, lets say last year at this time, given that we are all working from home, so many are schooling from home . Steve there are a few things. The working from home, it basically creates a soft target for the cyber criminals. You can think of everyone working from home as now being their own i. T. Department. They are working on home networks, using consumer devices, and that makes it easier for cyber criminals to get into an organization. We are also seeing cyber criminals attack differently. They used to attack a system or a device. Now we see them taking over an organization, which makes it a lot more difficult and more expensive to know when they have been removed. They in cyberspace, attacks are sometimes coordinated or happening in parallel to things happening at the government or at a geopolitical level. Is there anything in particular that you believe a new, Incoming Administration should be on the lookout for, given the state of where we are right now in andrspace in the pandemic no vaccine yet on the market . Absolutely. One of the things the report goes into, many countries fail to enforce cybercrime laws. In some cases, such as north korea, we actually see that the state itself is conducting cyber criminal activity to pay for things like their nuclear program. As part of the new administration, being able to have a discussion where a zero tolerance policy for cybercrime occurring within a country is norms,d also setting new making it clear that no government can tolerate things like theft of individual intellectual property, which is critical to our tech sector. Mcafee is now a newly Public Company got bought by intel, when public again earlier this month. Talk to us about what your priorities are going into 2021. Steve so, in 2021 it is all about having a comprehensive defense for both the consumer and the enterprise market. We areconsumer space, having to protect the entire digital life of the consumer it is not just about protecting their pc, but also working with them everywhere that they go if they have been part of a digital breach, if they are using other devices on the enterprise side, it is about recognizing all of the new technologies, so his organizations move to the cloud, having strong cloud defenses, as we are working from home, having good cloud edge defense capability. It is putting all of that together, and as we have seen from this report, the problem statement is just a staggering challenge, and mcafee is right there to be part of the solution. Right, mcafee ceo steve grobman, to our for joining us. Updating, cloudflare withols to keep people this compliance with law somewhere where they do business. A conversation with the ceo coming up next. This is bloomberg. The usual gifts are just not going to cut it. We have to find something else. Good luck what does that mean . We are doomed. [laughter] thats it. I figured it out were going to give togetherness. That sounds dumb. Were going to take all those Family Moments and package them. Hmm. [laughing] that works. Emily welcome back to bloomberg technology. Im emily chang in san francisco. Worlds first globally distributed network with regional controls that gives Companies Control over where their data goes and who has access to it no matter where they do business. Joining us for an exclusion exclusive conversation is cloud flare cofounder matthew prints. What does this mean if you are a business uses your sweet . Matthew whats important to start with is what happens with the typical cloud infrastructure. If you are summoning a car service or ordering something from your favorite ecommerce site, even if that service or site is using the cloud, that data is going back to one location in the world and by and large, thats going to somewhere like virginia or oregon or a limited set of where data is stored. Whats happening is consumers are getting fed up and governments are getting fed up with all that data getting sent back to these limited set regions around the world. So they passed rules that say if youre a business going forward, you need to store the data of your customers in the jurisdictions where those customers live, work, reside and use your service and you cant transfer it back to virginia. That creates a real challenge for businesses because up until now, there hasnt been a cloud that allows you to do that. So what we are launching is a way to use the cl