Amzon AWS Cost Control Insights

June 29, 2020

Amazon’s AWS is a fascinating business case. On one hand, AWS reduces some of the hurdles to modern solution development. On the other hand, it is easy — even for an experienced Certified AWS expert — to forget what’s running, whether a particular service is unnecessary, or what processes are tucked into the corner of Jeff Bezos’ profit making machine. “Our AWS Bill is ~ 2% of revenue. Here’s How We Did It” provides a run down of the money gobblers and provides some helpful guidance. There are screenshots in the Gulf racing colors of orange and blue. There are explanations. Plus, there are useful insights; for example:

Our application is a Shopify app and during the process of building the application we created a Shopify store. Every Shopify store gets its own personal CDN where you can manually upload anything and it will be served over the Shopify CDN. So we minified and uploaded our JS file to the CDN of our Shopify store and now we serve 20000 Shopify stores using this method at zero cost.

One problem: There are more ways for Mr. Bezos to suck cash from eager and willing customers than helpful explanations of how to keep expenses low.

Stephen E Arnold, June 29, 2020

Brazil and WhatsApp: Avoiding an Orkut Moment?

June 24, 2020

Brazil, land of pinga and Covid, is brandishing some Lança-perfumes with malice. “Brazil Suspends WhatsApp’s Payments Service” reports:

Brazil, the second largest market for WhatsApp, has suspended the instant messaging app’s mobile payments service in the country a week after its rollout in what is the latest setback for Facebook. In a statement, Brazil’s central bank said it was taking the decision to “preserve an adequate competitive environment” in the mobile payments space and to ensure “functioning of a payment system that’s interchangeable, fast, secure, transparent, open and cheap.”

This is an interesting development. The banking system in Cariocaland is fascinating. Facebook’s confident leader assumed that WhatsApp was a slam dunk in a nation state where cash transactions take place near cathedrals located in central squares.

The issue, however, may be a lingering digital imprint from the long ago era of Orkut. Google’s failed social network (no, I don’t want to recount the story, gentle reader) was allegedly quite the go-to service for some elements of Brazilian society.

Law enforcement in Brazil is stretched. Orkut was an electronic accelerant for certain activities which the government had determined were detrimental to the country.

DarkCyber believes that usage of WhatsApp emulated some of the exploratory paths used to chop through the Orkut digital undergrowth.

The result? Yo, Facebook, stop.

Perhaps Facebook’s method of ignoring is meeting some resistance? Germany is taking Facebook to task. Plus there are some advertisers waving their checkbooks and saying, “No ads in July.”

What’s self aware mean for Facebook’s management?

One answer is, “You are all stupid.”

A new company motto. Facebook could make its own version of the Brazilian flag and replace “Ordem and Progresso” with “You are all stupid.” Interesting. “All.”

Stephen E Arnold, June 24, 2020

Now These Are Numbers You Can Bank On

June 1, 2020

In the midst of the pandemic, DarkCyber noted “How Semantic Search Helps Users Help Themselves.” The write up is from Lucidworks, a company reselling open source engineering support, proprietary software, and other jazzed up solutions. In the write up was a reference to an IBM document. The idea is that the IBM data make a case for buying IBM? Of course not. The data support the contention that semantic search is like training wheels on a toddler’s bicycle.

What are these magical data? First, the data come from an IBM blog post dated October 17, 2017. That’s a couple of years ago. Change does happen, doesn’t it?

Check out these numbers:

  • Businesses spend $1.3 trillion on 265 billion customer service calls each year
  • Phone interactions cost around $35-$50
  • Text chat costs about $8-$10 per session
  • It is realistic to aim to deflect between 40% – 80% of common customer service inquiries to automated frameworks.
  • A drop in per-query cost from $15-$200 (human agents) to $1 (virtual agents)

What’s the connection to the SOLR centric Lucidworks? The company wants to convince prospects that it has the solution known as chatbots. Clever phrase for what is a cost reduction play. Do chatbots work? That depends on whom one asks.

The good thing about chatbots is that they don’t create Rona hot spots. The bad thing is that most of the chatbots don’t work particularly well.

The IBM data, even though old and not in step with the Rona business climate, suggest that the on going cost of helping a “customer” deal with a product and service is brutal. Combine these here and now costs with the technical debt of informationized products and services and what do you get?

The short answer is that one has to have quite a bit of money to keep the good ship technology afloat.

Even Google-type companies, faced with sky rocketing costs and a dicey economic environment, are having to make money saving changes.

Net net: The happy talk about super duper technologies often creates cost black holes. What about IBM? Layoffs and ultra hedgey forecasts. What about Lucidworks type outfits? Wow. Much sales work ahead.

One suggestion? Watch those assertions and one’s cost accounting. Can one “help oneself”? Absolutely, maybe.

Stephen E Arnold, June 1, 2020

AWS Cost Management

May 29, 2020

I am not sure if Amazon AWS cost management was covered in my Accounting 101 class and in the mindless training programs I enjoyed at Halliburton NUS, Booz Allen & Hamilton, and “lectures I could not escape from” at “secure” intelligence conferences. Come to think of it, Amazon AWS cost management is a new and increasingly important discipline. Ah, if I were 25 and looking for a niche, AACM, shorthand for Amazon Aws cost management might be lured by this digital Peitho.

Why is AACM (among the DarkCyber team we pronounce this acronym ah-shazam) a new big thing?

Navigate to “How We Reduced the AWS Costs of Our Streaming Data Pipeline by 67%.” The write up explains what one outfit did to keep $0.67 from the scraper of the Bezos bulldozer. The procedure involved technical analysis, cross tabulation, and detailed tracking of AWS billing.

Do know a cost accountant up to this work? What about a newly minted CPA? What about a financial analyst working at a Silicon Valley money machine?

I don’t. Thus, gentle reader, here’s a practice for a recent college accounting grad or a with-it MBA.

Stephen E Arnold, May 29, 2020

News Report from India Alleges Thomson Reuters Tap Dances with Trust

May 26, 2020

Who knows if Tecake in India is reporting “real news.” The report is interesting and thought provoking like its title: “Thomson Reuters Faces Pressure Over ICE Contracts.”

DarkCyber finds Thomson Reuters use of “trust” as a keyword interesting. My father once told me, “Anyone who tell you he or she is honest, may not be.”

The write up alleges:

A group of Thomson Reuters shareholders says the company’s technology databases are being used by Immigration and Customs Enforcement to “track and arrest immigrants on a massive scale,” potentially causing reputational damage to the company.

The article then adds:

Jacinta Gonzalez of Mijente said in an interview with The Verge that the role of data brokers like CLEAR in the surveillance of immigrants has been unsettling.

“While Thomson Reuters has built a brand as a trusted news source, few people realize that the news operation is largely financed by the company’s role as a data broker for agencies like ICE,” Gonzalez said. She added that there are “enormous risks” associated with working with ICE, not the least of which are human rights concerns around the agency’s detention of immigrants and the separation of families trying to enter the US at its border with Mexico.

Thomson Reuters may find itself in an unusual position: Making news instead of reporting it.

Worth watching how a trusted outfit responds to shareholder and activist grousing. Money is the objective, isn’t it? Perhaps questioning trust is not in the notebook?

Stephen E Arnold, May 26, 2020

Yes or No: Unicorns in the Time of Pandemic

May 24, 2020

Each tech startup has little more chance of becoming a unicorn than you have of stumbling upon the animal version on your next nature walk. In venture capital speak, a unicorn is a privately held startup that has undergone hyper-growth in a new or changing market and is valued at over $1 billion. Such companies, when they do occur, often redefine (or “disrupt”) a market through their innovations. Journalist John Gallagher reminds us that fewer than 1% of companies reach this position in, “It’s Time We Outgrew our Fairytale Fascination with Tech Unicorns” at TNW.

“Unicorns are very eye-catching and we all love to read about them. I followed the drama surrounding WeWork with fascination, with the founder walking off with several hundred million dollars, an extremely rare outcome for a founder whose investors are in the red. Was there a different way to build the company which would have seen real value built for all involved? I certainly think so. Sustainable growth and keeping control of your company has a much higher likelihood of success for founders. Dreaming big is certainly a powerful mindset for entrepreneurs, but keeping your feet on the ground is also important for those who want to build businesses that will have a high chance of lasting more than a few funding rounds.”

Sure, it would be great to be (or invest in) a unicorn, but as we know the chances of success are slim. The more likely outcome, writes Gallagher, is that founders will burn through tens of millions of dollars in a few years only to have investors demand they sell the company with nothing to show for it but failure. The sustainable-growth journey may be boring compared to chasing unicorns, but it is much more likely to lead to a happy ending.

Cynthia Murrell, May 24, 2020

DarkCyber Exclusive: Steele Aims for the Hearts of Wall Street Short Sellers

May 23, 2020

We posted a follow up interview with Robert David Steele, a former CIA professional. This video expands on the allegations of wide spread, systemic fraud. Steele explains why a government task force is needed. He describes the scope of the audit, involving six financial giants and a back office operation. If you are interested in learning about alleged skyscraper-sized financial misbehavior, you can view the video on Vimeo at this link.

Stephen E Arnold, May 23, 2020

Facebook: Reducing Overhead and Maybe Management Oversight

May 22, 2020

NBC News (I know “real news” is thriving) published “Mark Zuckerberg: Half of Facebook May Work Remotely by 2030.” The article quotes the fellow who was not really in touch with Cambridge Analytica’s activities as saying:

“We are going to be the most forward-leaning company on remote work at our scale,” the Facebook CEO said in an interview.

The article points out:

Still, Facebook’s move — and Zuckerberg’s expectation of a 50-50 split between in-office and at-home workers by 2030 — marks a seismic shift for Silicon Valley and American business generally, especially if other companies are inspired to follow suit.

One obvious point is that Facebook is aiming to reduce the costs for office space, heat, electricity, and related facility services.

The motivation may be simpler than the complex verbal gymnastics reveal: Facebook can be more profitable, distance itself from certain office behaviors, and use monitoring technology to keep the gerbils running.

How many commercial real estate professionals agree with me? Yep, that’s what I thought.

Stephen E Arnold, May 22, 2020

Translation: Improvement Attracts Money

May 21, 2020

Foreign languages remain a problem for modern society, even with the bevy of translation software available. Most translation software lack native language fluidity and are unreliable. Lilt makes AI-powered business translation software and Venture Beat says that: “Lilt Raises $25 Million For AI Enterprise Translation Tools.” Lilt plans to use the money for further NLP research and go-to-market strategy acceleration.

Lilt’s clients translate information into seven languages and find the manual translation process slows down business practices. Lilt overcomes translation issues with:

“Lilt tackles this with human translators and CAT, a tool that helps them work more efficiently, using hotkeys, style guides, and a proprietary neural machine translation engine. CAT can be tailored to a company’s content, translation history, and other linguistic assets and configured to automatically add in previously translated segments when it finds matches within documents. The tool’s termbase and lexicon features help translators use the correct terminology in a given context, chiefly by showing them a range of possible translations for a certain word. And the engine taps AI and machine learning to analyze translation data and make predictive suggestions.”

Like most AI technology, Lilt’s systems requires new data, in this case languages, to learn. Translators work with the engine to accept, amend, or reject its translations.

The company has competitors such as Unbabel and the market for AI-based translation software is projected to be worth $983.3 million by 2022.

Didn’t Google “solve” machine translation already too? Obviously not completely.

Whitney Grace, May 21, 2020

Harvard Channels MIT: Academic Funding Magnetism

May 20, 2020

The study of mathematical principles that guide evolution is a fascinating field, and Harvard’s Program for Evolutionary Dynamics is a worthy research and teaching program. Its goals include, among others, finding cures for cancer and for infectious diseases. Unfortunately, like many poised in an ivory tower, its director seems to have been afflicted with greed. The Harvard Crimson Reveals, “FAS Places Prof. Nowak on Leave after Report Finds Epstein Used His Program to Rehabilitate Image.” Reporter James S. Bikales writes:

“A University report found Epstein attempted to use Harvard and the Program for Evolutionary Dynamics, which Nowak directs, as a tool to rehabilitate his image following his 2008 conviction for solicitation of minors for prostitution. Epstein likely made more than 40 visits to PED’s offices at One Brattle Square between 2010 and 2018, according to the report, which also states that Nowak approved the posting of flattering and false descriptions of Epstein’s philanthropy and support of Harvard on the PED website.”

Though no evidence was found that donations from the (alleged) underage-sex-ring facilitator and serial abuser were accepted after his conviction, he had donated millions to the PED in the recent past. Epstein also helped facilitate a John Templeton Foundation grant to the program in 2015, which was accepted. Certain pre-conviction perks were also supplied to the convict-to-be, including a fellowship he was unqualified for and an office complete with keycode access to the PED building. There is no evidence Epstein interacted with students during his approximately 40 visits, aside from sitting in on one undergrad math class.

While awaiting trial on federal charges of trafficking and sexually assaulting at least 80 underage girls, Epstein died in August 2019 in his prison cell. Though likely to be less dramatic, Nowak’s fate is still to be decided pending an investigation.

Cynthia Murrell, May 20, 2020

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