Banjo Targets an F Sharp and Breaks a Polyweb String
May 10, 2020
Policeware vendor Banjo continues to make headlines. (This may be welcome news to NSO Group, another low profile firm which has been in the spotlight recently.)
The Banjo story is one of the features in the DarkCyber video news program which becomes available on Tuesday, May 12, 2020.
Mr. Patton graduated from the University of North Carolina Greensboro. NASCAR helped him get a degree after his discharge from the US Navy. He served in an intelligence unit and participated in military activities in the Middle East. He allegedly races trucks.
There’s an update to the interesting revelations about the founder Damien Patton. Mr. Patton started a company sometime between 2011 and 2013 called Banjo. The original idea was a social media app. The function was to ingest Tweets and other content and display who was nearby. After some excitement about privacy, Mr. Patton pivoted and created a policeware company.
The angle was to use real time live video and content from social media sources like Twitter and Facebook to inform law enforcement about events. Unlike some of the policeware companies, Mr. Patton’s spin was that Banjo would be used to save lives and do good.
By 2016, Mr. Patton has wrapped up about $131 million in funding and bundled his past underneath the firm’s PR blitz. The “news” about Banjo and Patton played up a rags to riches story: From Mr. Patton’s homelessness to the US Navy, from a NASCAR grease pit to entrepreneurial clover.
Until… the story emerged about Mr. Patton’s activities in his youth. The allegations included the KKK, shooting up a religious facility, and rubbing elbows with interesting characters.
Where are we now?
“Banjo CEO Steps Down as Fallout from the Revelations of Past Ties to KKK Continues” brings us up to date. The write up states:
Embattled event detection tech firm Banjo announced Friday that the company’s current CEO and founder, Damien Patton, has resigned and the company will transition to a new leadership team with current Chief Technology Officer Justin R. Lindsey taking over the top position.
And the investors?
One of the principal sources of funding for the company is SoftBank, a firm which has the distinction of investing substantial funds in WeWork.
Now the firm has a new president, probably some agitated investors, and the distinction of becoming the first policeware company to hurtle from obscurity to headlines in a matter of a couple of days.
One question: “What did Banjo do with the investment funds obtained from investors?” DarkCyber opines that the patent filings in the last four years indicate inventing and fencing in its real time services consumed time and effort.
Banjo has amassed a number of patents related to its real time analysis of content. One of the early employees (Yann Landrin-Schweitzer) and co inventor of Banjo’s foundational technology said adios after a short stint at the company. Despite the assertions that the company has hundreds of employees in offices in California and Utah, Banjo has kept a low, low profile since 2016. Paying customers have not be enshrined on the company’s Web site at www.banjo.co.
Net net: This is an interesting story, and it does little to build confidence in the vendors providing specialized services to law enforcement and intelligence agencies. At one time, companies like Banjo kept a low profile, tried to avoid problems, and served a tight lipped clientele. NSO Group broke with tradition. But NSO’s legal spat with Facebook has been shoved off state.
Now we have a NASCAR type booth featuring a banjo player. What does it cost to see the show? John Malloy at BlueRun paid a couple of million. But Masayoshi Son put an estimated $100 million to get a piece of the act.
Was it worth it?
The reviews are just starting to come in, and they are a little negative. This could be a new PR challenge for Jennifer Peck, the PR wizard who helped orchestrate the Damien Patton story.
Observations:
- Having skeletons in one’s closet related to the KKK and a drive by shoot up of a synagogue are not useful when selling to law enforcement and intelligence entities
- Losing contracts and having government officials in Utah scrambling to figure out if Banjo’s algorithms are biases poses a challenge to other policeware vendors. Algorithms are indeed biased, but figuring out where the bias creeps in and how it effects the outputs of a smart system is a tar ball. This is probably not a plus for other policeware vendors.
- Agitating SoftBank’s president Masayoshi Son is possibly an unwelcome side effect of this situation. The investment in Banjo is going to require time and probably more money to get the company back on track.
The DarkCyber video segment about Banjo becomes available at www.arnoldit.com/wordpress early Tuesday, May 12, 2020.
Stephen E Arnold, May 10, 2020
SoftBank in the News: The Caldron of Son, Masayoshi Son, That Is
May 8, 2020
Masayoshi Son, the founder of SoftBank, could feature in a new Star Wars movie. Tentative title: Trouble: The Caldron of Son. (A tip of the hat to The Wrath of Khan, of course.)
A short time ago, Banjo’s founder was allegedly involved in some non-high tech activities; for example, a possible drive by synagogue shooting and a KKK event. Why’s this important? SoftBank wrote a check for $100 million in 2016 to help this cyber intelligence firm become a better Palantir Technologies. Banjo’s secret sauce: Real time video alerts about “events” for law enforcement. Palantir does real time, but it is not exactly the TikTok of the investigative software world. Banjo was supposed to achieve that useful goal: Real time intelligence in real time.
That went south.
DarkCyber noted the real and trustworthy news story “WeWork Co-Founder Neumann Sues SoftBank over Failed Tender Offer.” WeWork, like Banjo, appears to have been a questionable investment. Now the very entrepreneur in whom Son had faith has turned around and bitten the hand that once fed him. How much? A significant portion of $9.6 billion to rescue the WeWork outfit.
What do these two investments have in common?
Answer: Due diligence which seemed to leave some issues in the fog. One issue: Damien Patten’s pre-Banjo life activities. Another issue: The interpersonal relationships and personality quirks of Adam Neumann.
These two events could be sufficient to make The Caldron of Son into a possible Quibi 10 part super successful video event. Who knows maybe the litigation will overlap with Quibi’s adventures with Eko?
DarkCyber perceives the due diligence evidenced in the Banjo and WeWork matters illustrate the weaknesses in the good enough approach to investment research.
One thing is clear: Spreadsheet fever may impair vision. That’s no fun(d).
Stephen E Arnold, May 7, 2020
For more coverage of “good enough,” navigate to this special page.
Adulting: Will It Persist?
May 4, 2020
The lure of leasing a flashy vehicle is strong. Will start ups acquire a reputation for financial probity? DarkCyber is not confident that adulting will endure. The Financial Times (remember its Endeca-based search system?) published “Hottest Silicon Valley Start Ups Begin to Sell Themselves at a Discount.” [Note: this is a link generated by the Financial Times’ security system. You may have to do some experimenting to get the write up to render. You will know you are on the right track when the wonky flesh colored background appears.] Furthermore, the write up asserts, “Balance of power shifts back to investors as founders look to bolster balance sheets.”
The write up includes a Captain Obvious quote attributed to a partner at the upscale law firm Fenwick & West:
“It’s bold and risky to be giving a company a term sheet in this really uncertain environment, and to give that investor downside protection does not seem unfair.”
We love the “does not seem unfair.” Too bad the lawyer did not include a “but for.”
DarkCyber concluded, after pondering the write up on a screen tinted the color of some humanoids’ skin:
- Shakespeare, Merchant of Venice phrase : “pound of flesh”
- Handwaving and virtue signaling are popular
- Bros will be bros
- Lawyers win regardless of the “risk” investors face.
Net net: The bubble is losing its heady mix of methane, sulfur dioxide, and volatile organic compounds or VOCs.
Stephen E Arnold, May 4, 2020
Looking for the story about SEO fraud? If so, click here.
Equifax: An Online Celebration of May Day
May 1, 2020
Here in rural Kentucky it is May Day. Some of the dwellers in the hollows wash their faces with dew to beautify their skin. Others erect poles, tie ribbons to the top, and dance. Others, like me, think about spring, the promise of green shoots of corporate responsibility and socially aligned behavior.
How will Equifax celebrate May Day?
If the information in “Over 275 Days Since Equifax’s Data Breach Settlement and No One Has Been Paid” is accurate, the answer is simple. Collect interest.
The write up asserts:
Equifax was rocked by a massive data breach affecting most (56%) Americans. The company agreed to one of the largest settlements of its kind, $700M to be disbursed…
Then the article claims:
Many of you probably read some of these headlines in the summer of 2019, and many more still filled out the forms after promises of up to $125 per afflicted party. There were several deadlines and additional hoops people had to jump through, but 275 days later: no one has been paid yet, and it’s not clear if they ever will be.
How many days have elapsed since the security issue? About 800.
Is this a cause for celebration?
Stephen E Arnold, May 1, 2020
Google Ad Revenue: What Happens When the One Trick Pony Gets Seedy Toe?
May 1, 2020
Seedy toe?
What’s that? If you live in Kentucky, home of the abandoned Derby you know. If not, your child’s pony is going to be in discomfort. And the costs? You don’t want to know what large animal vets in horse country charge, do you?
“CEO Sundar Pichai Spells Out Alphabet’s Positives, but COVID-19 Damage to Ad Revenues Is Only Going to Get Worse” presents a key point articulated by the chief Googler Sundar Pichai:
In March, we experienced a significant and sudden slowdown in ad revenues. The timing of the slowdown correlated to the locations and sectors impacted by the virus and related shutdown orders…Overall, recovery in ad spend will depend on a return to economic activity.
The article also quotes the Google chief financial officer as observing: The second quarter will be “a difficult one.” Google’s CFO did not elaborate on Google cost control measures. Yep, cost control. Important DarkCyber believes.
But back to seedy toe and a lame pony.
The bulk of Google revenues come from online advertising. Amazon is doing a good job of capturing product search and that means that Amazon product ad revenue is likely to track those clicks. That’s bad news for Google as the bad news from the virus disruption affects large swaths of the global economy. Facebook’s ad revenues may have taken a hit in the most recent quarter, but that outstanding, other-directed manager Mark Zuckerberg hungers for more ad revenue as well.
Google may be able to kick sand in the face of dead tree outfits, but the datasphere is a different sort of construct.
Limping ponies will not be invited to parade at birthday parties. Lame ponies can be expensive to make well again.
Here in Kentucky there are only so many places at the Old Friends Farm. Then what? A one way ticket to Fiji? Ponies are a treat of sorts in Oceania. Bula!
Google needs to avoid seedy toe. Amazon and Facebook are not ponies. These outfits are tigers with a hunger for easy prey; for example, a lame pony.
Stephen E Arnold, May 1, 2020
Amazon: Business Is Business
April 30, 2020
The truthy real news outfit published “Amazon turns to Chinese Firm on US Blacklist to Meet Thermal Camera Needs.” The write up points out that Zhejiang Dahua Technology Co Ltd is one of the outfits the US government does not buy from. Companies like Amazon are not constrained. But a deal is a deal.
A possibly afflicted employee possibly making a mobile phone call allegedly whilst working in an Amazon warehouse. Illustrative image source: https://bit.ly/35gD2vF
Thermal or multi spectral cameras are just less expensive when sourced from the Middle Kingdom. Plus the cameras are needed to make sure the happy, well paid, motivated Amazon warehouse workers are not ill. The idea is that a snap of a worker with a fever turns up as a bright blob. Amazon’s professional and sensitive managers can then rush to assist the afflicted professional. When employee health is concerned, Amazon leaves no low cost supplier in the dark. Business is business, even in matters of financial probity and health.
Stephen E Arnold, April 30, 2020
Sigma Gets $30 Million In Key Funding
April 30, 2020
Once the economic ramifications from the COVID-19 pandemic are underway and you are adjusting your investment portfolio, data analytics company stocks should not lose any value. Why? Data analytics platforms are in high demand and Sigma Computing recently nabbed: “Sigma Computing Raises $30 Million More For Cloud Data Analytics Tools” says Venture Beat.
Sigma Computing held a series B round of founding and added another $30 million to their fund. Investors in the second funding round include Sutter Hill Ventures and Altimeter Capital. CEO for Sigma Computing Rob Woollen said the money would be used for product development and product support.
Woollen stated that data is useless without making it comprehendible and capable of delivering actionable BI insights. Sigma makes data useable, but also keeping in mind the importance of governance, security issues, and compliance. Sigma uses a spreadsheet-like UI that transforms data from any source into useful insights, plus the search tool is powerful:
“Searches can be performed by natural language and by filter, the results of which can be compiled in an embeddable report and delivered via email. Where collaboration is concerned, Sigma’s link feature enables users to map data relationships and add linked data to documents. The platform’s workspaces are conducive to sharing — they can be circulated among teams, departments, or entire organizations — and spotlight important data blocks, worksheets, and interfaces with visual badges and a range of visualizations.”
Sigma Computing includes Zumper, Navis, LendUp, Clover, Volta, and Olivela among their clients. They sell software for data visualization and big data/business analytics, both markets combined are worth over $11 million. It sounds like a good investment.
Whitney Grace, April 30, 2020
Documentation: Possibly Too Expensive to Produce?
April 29, 2020
The cost of documentation is not a hot topic. The good old days of getting a fat manual, produced by the pre-Adobe Framemaker, has gone the way of the dodo. We noted that a possibly accurate factoid surfaced about the cost of the documentation for the US government’s Air Force One aircraft. According to Defense One, the documentation for the new Air Force One costs $84 million. You can get the details in the news story at this link.
The number is an interesting one. The cost for software documentation can be kicked under the sofa. When a “true” or allegedly “true” cost surfaces, the number may surprise.
Stephen E Arnold, April 29, 2020
Do Big Clouds Pay Forward?
April 26, 2020
This spring’s sudden increase in work- and school-from-home arrangements has been a huge boon for cloud providers. Many of their business clients, however, have suffered revenue losses of as much as 50 or 60 percent this season. You would be wrong if you thought the biggest providers would have mercy on their small-business customers. Taipei Times reports, “Amazon, Microsoft Offer Little Relief to Cloud Clients.” We’re told Google joins those two in their lack of compassion.
A hallmark of the cloud business model has been flexibility, where companies pay for what they use. However, big providers have been pushing long term contracts with minimum spending thresholds. Companies who could once cover these minimums with ease are now stretched thin, and many feel betrayed. While countless landlords and regulated utilities have offered relief programs, cloud providers are doing little to nothing of the sort. Perhaps they are too busy counting their growing piles of coin. Journalists Mark Bergen and Matthew Day report:
“By the middle of last month, John Lyotier’s travel software business Left Technologies Inc was cratering with the spread of the COVID-19 pandemic. Seeking to cut costs, he reached out to his office landlord, who offered rent relief. Then he contacted Amazon.com Inc, asking to ‘explore creative financing opportunities’ for his monthly cloud-computing bill. The response was succinct: ‘Nope, that’s the way it is.’ … With the economic devastation of COVID-19, entrepreneurs such as Lyotier feel that the fate of their businesses rests on the benevolence of their cloud provider. While Amazon Web Services (AWS) is restructuring some large contracts on a case-by-case basis, according to a person familiar with the decisions, smaller companies are not receiving the same flexibility. Half a dozen start-up executives said that recent appeals to these cloud companies have gone unanswered. While older technology providers, such as Cisco Systems Inc, are offering credits to customers, the major cloud companies have not made any public announcements about deferring or cutting bills for clients.”
As this pandemic and its economic repercussions continue, perhaps big tech will decide to extend some grace to its clientele. After all, one cannot make money off of customers who have gone out of business.
Cynthia Murrell, April 26, 2020
IBM: Respond to a Hungry Tiger with Deflection and Delay
April 24, 2020
I stumbled across an essay by a former IBM Watson professional writing in his new role at a real estate company. The career choice struck me as interesting, and I decided to read “How to Manage During A Crisis: Sort Everything Into “Now, Next, or Later“. The advice and opinion article appeared in Entrepreneur Magazine. I rarely associated IBM Watson, real estate, and entrepreneurial spirit. Time to learn I decided.
The write up states:
In normal times, every business should have a plan. But you can’t plan for contingencies when the business climate might change, when new laws and regulations are imminent, or, as in our current crisis, public health threats are in flux. At that point, planning is simply a waste of time. What to do instead? React fast.
Management with minimal thought strikes me as a fight or flight approach. The idea of figuring out how to avoid a hungry tiger is one thing, dealing with business challenges seem slightly different.
The desire to react fast may be why this individual abandoned the relative safety and security of IBM for the thrilling world of property management. As those renting properties close their offices, I imagine that property management is becoming slightly more thrilling than it was a few years ago.
This management advice strikes me as the type of thinking that does not match up with IBM. The essay notes:
The U.S. Air Force has a conceptual model for fighter pilots called OODA—or, “observe, orient, decide and act”—that might help you think about crisis management.
This is an updated version of the hungry tiger situation. Humans may be hard wired to get an adrenaline boost from OODA situations — if the enemy’s air to air missile is picked up by the aircraft’s defensive systems AND the systems react in the time available to neutralize the attack. Modern air warfare, if I understand the upside of the F 35 platform, is to never get into this surprise situation.
Are IBM’s problems a surprise like this tiger ruining a nice walk in the bush? Perhaps IBM embraces the hungry tiger as a way to buy time and create a plausible explanation for its revenue decrease and disappointing financial outlook?
What about IBM?
The author just mentions IBM Watson, so I think he is either proud of having worked on that outstanding collection of smart technology, he wants to bask in Watson’s halo effect, or he is making a distinction between the real estate way and the IBM way.
IBM has had its share of minor troubles: Litigation related to RIFFing workers, management turnover at the top, and financial disruptions.
“IBM Q1 2020 Earnings Call Highlights: Withdraws 2020 Outlook Amid Covid-19 Crisis” suggests that IBM is shifting into the adrenaline charged world of facing one or more hungry tigers.
The write up reports:
As the impact of COVID-19 intensified in March, [IBM] clients began to deprioritize some of their projects. In this environment, the company deployed its resources to engage customers virtually, modernize and migrate the applications to the cloud, empowering a remote workforce with cybersecurity and IT resiliency. The company expects its Global Business Services customers to continue to delay and replan some of their projects in the near term.
Okay, Covid was a surprise to almost everyone except the Chinese and BlueDot in Canada. Yes, the virus has created some economic pressure. But IBM’s issues began long before Covid became the alleged surprise.
IBM has bought back about $140 billion in its stock to put some shine on the Big Blue operation. The write up points out:
IBM withdrew its earlier profit outlook for the full-year 2020 given the uncertain environment in the wake of the COVID-19 crisis. The company said that with better clarity on the economic recovery it will reassess the situation and will give an update at the end of the second quarter of 2020. When IBM announced fourth-quarter 2019 results in January, it had projected GAAP EPS to be at least $10.57 and non-GAAP EPS to be at least $13.35 for fiscal 2020. The company expects the second quarter to be more challenging if the customers continue their same buying pattern.
The translation in my lexicon means, “We are losing revenue and costs remain a problem. Circle the wagons. Blame the virus.”
DarkCyber believes that IBM’s entrepreneurial behavior will mean more staff cutbacks, more wild and crazy marketing, and acquisitions which deliver a RedHat type of boost. Yep, fast, decisive action.
What does the former IBM Watson professional advise:
But when an extreme or unprecedented event takes place, those plans almost always come up short—because they’re geared toward maintaining business as usual, instead of coping with the kind of massive disruption that nobody could prepare for… Right now it’s better to ditch those five-year plans… and get ready for curve balls we know we can’t predict.
Whoa, Nellie. I thought that IBM Watson made it possible to make sense of disparate information. Watson can process data and generate “answers.” What this former IBMer recommends and what IBM itslef is doing is rationalizing fear, uncertainty, and dread.
One would think that anyone injected with the Big Blue antiviral would do more than dodge reality. The problme is not a particular hungry tiger; the problem is the IBM systems and methods.
The IBM way has not worked well for years, and it is unlikely that the duck-and-delay approach will deliver what stakeholders expect: Growth, sustainable revenue, and a healthy bottom line.
Never fear, gentle IBM workers, there are opportunities in real estate or as management consultants.
Stephen E Arnold, April 24, 2020
-
- Subscribe to Beyond Search
Feature archive
News archive
-
