Transcripts For BLOOMBERG Bloomberg Technology 20171222

Want to use momentum from their tax bill victory to take on welfare. Paul ryan says 2018 is a chance as a chance to reshape the safety net for the poor and disabled. He also wants to change food stamps and medicaid programs. In Southern California firefighters doused hotspots. ,winds increased that could whip up embers and flareups. A huge fire still smoldering northwest of los angeles. Officials say the blazes 60 contained and now the second largest in california history. Global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. Im alisa parenti, this is bloomberg. Bloomberg technology with emily chang is next. Emily i am emily chang and this is bloomberg technology. Coming up, we take a look at a big year in consumer tech, from google to amazon to apple. What worked, what did not and what is worth your money . Plus, we discussed facebooks role on the platform for political propaganda. Is the social network overstepping by helping useroversial World Leaders the platform . Brian moynihan is the ceo of bank of america and says the firm is a tech company at heart. Our exclusive interview. Apple is developing an advanced heart monitoring feature for its new apple watch. It is part of a broader push to turn what is a Luxury Fashion accessory into a serious medical device. Wearables are far from mass production. Less than 20 of the population will be using a wearable device by next year. That growth rate is slowing. And analyst joins us from chicago, along with our bloomberg tech reporter alex webb who broke the story about , apple. What exactly is apple working on it are ready monitors your heart, but this is different. Alex they can monitor your heart rate. But that is in the moment. Your heart rate extended over certain period of time. An electrocardiogram, the ekg, the device they are developing what that is able to do is , anticipate future cardiac events. They can see if you possibly will have a stroke or blood clot and should see a doctor. That predictive and preventive and health care is a huge opportunity for apple, potentially. Emily how does this fit into apples overall plan . Alex the preventive idea is crucial. Apple has talked a lot about the prospects for health care, a huge industry. In to grow as much as 1 3 the next 5, 10 years. Apple is trying to position the watch toward the health care industry. It senses a great opportunity than just more luxury products. The watch was marketed that way to begin with. It was very much a luxury piece of leisurewear. We have breaking news, eric schmidt transitioning to a new role as a Technical Advisor to alphabet. Just getting in the full release from alphabet. For schmidt was google ceo a long time, then became executive chairman. Larry page returned as ceo. Larry page the cofounder of google. Page then restructured the company and became ceo of alphabet and schmidt became executive chairman of alphabet. There is likely some more to the story. Schmidt has been at the company for a long time. We will have more on the story momentarily. Alex, in speaking about apple and its health efforts, what does this signify about where apple wants to take the watch, and how much will this Health Monitoring part of the device help sales . Alex at the moment, it remains something of a luxury. If you are asking me do you have , a watch . Yes i do. Do you need a watch . I am not sure. They are trying to make it a central part of your life. If you have any concerns about Health Issues Going Forward you , really feel like you need to buy one. Emily nicole, i want you to tell us a little bit about how wearables are doing right now. There was a lot of optimism about the potential for wearable devices. They have not lived up to the hype in terms of adoption. Where do things stand right now . When it comes to actual use. Nicole that is exactly the case. Back in late 2015, we were very bullish on wearables. That is primarily because we expected the apple watch to respond well. When that did not happen, we downgraded our forecast last year significantly. We just updated that again. We bumped it up slightly, but nowhere near where we were at the time. Now we estimate that this year, 45 Million People in the u. S. Use a wearable at least once a month. Next year that will rise by , about 12 to about 50 million u. S. Users. Emily just once a month . Isnt the goal to get people wearing these every single day . Nicole most people probably do, but that is how we estimate usage for most consumer devices. Emily do you think a feature like a more advanced heart monitoring feature would actually significantly boost sales of Something Like the apple watch . Nicole like you were saying, they are trying to turn this from a luxury, nice to have item, into a need to have item. While i think that that kind of Health Information would be of a lot of interest to some people who have risk factors and there are other ways people are looking at apple watches, to monitor glucose for diabetics i do not know that is something that the mass market will feel like they need. Especially at the current price point. Emily so, alex. We are talking about how wearables are slowing down and it seems smart speakers are the hot thing this year. And could surpass wearable sales. I wonder if there is a similar question there as to whether they will continue to dominate the market as they are right now . Alex you mean in terms of for the watch itself . I think is interesting with the speaker. Has been delayed. When they were first developing they saw things they had learned from the watch. They did not get a great message in her in terms of who is buying it. They gradually shifted and realized health is how they should be marketing it. But this is a music device. It is interesting to see the relationship between the two products. Emily it was supposed to be here in time for the holidays. It is coming out early next year. To a lot of competition from google home and amazon echo. Alex webb, thank you so much. Nicole perrin, thank you as well. Sticking with gadgets, with 2017 coming to an end, Big Tech Companies are still fighting to win your heart. And more notably, your wallet. What were the biggest offerings this year from apple, amazon, and google . Mark gurman looks back on the year in consumer tech. It has been a jampacked year for new tech products. All the big players are buying vying for every part of your life. Google is no longer just a search company. Amazon is more than a retail channel. Apple more than ever is going for the high end. They are all trying to fight to be your number one. Apple is going for the high end, the smartphone, with the iphone x. Without a doubt, this was the most anticipated gadget of the year. Perhaps the biggest iphone update in the companys history. So far it has been a hit with consumers. It is leading apple to expect a recordbreaking 80 billion holiday quarter. Apple is looking to round out its hold on you with the four k version of apple tv, a new apple watch and an air pod. Google wants to sell you a 400, super loud, highend speaker that works well with its new pixel 2 phone. Their stereo sound could be a better fit than the home pod. Amazon is trying to be everywhere in your room. They have released several new echo speakers. My favorite, the echo spot. It is an alarm clock and device of the future. Music andtes with Video Streaming Services and is a perfect holiday gift for the gadget lover in your home. Apples home pod, will come out in early 2018 after being delayed. The iphone maker is already working on its next iphone as well as an ipad with facial identification for next year. Google is working on a new home speaker with a screen. Amazon is always working on new echos. Happy holidays. Emily that was bloomberg technologys mark gurman. Returning to headlines, we broke for you a few minutes ago, alphabet saying eric schmidt is stepping down from his executive chairman role to become a Technical Advisor to the company. This ending a 17 year Senior Leadership position at the internet giant. Joining us now on the transition, our Bloomberg Television editor at large cory johnson. Cory i remember when he got the job. It was an amazing thing to see these young entrepreneurs with a new idea get one of the best people in Silicon Valley. He was well known for what he did. He came with a knowledge of how Enterprise Software works so much. He was known for his mind in Silicon Valley. Google became one of the Great Companies in the history of the world. As much as it was the founders, it was eric schmidt deeply involved. He stepped to this executive chairman role. He was very involved in running the company. Nonexecutive chairman is a very different job. Essentially it is a board level advisory role. His longterm history suggest he will still have an active role in the business. A nonexecutive chairman is very different from an executive chairman and the coo. It is remarkable, just simply remarkable what he has done in 17 years at google. Emily so this from larry page. Continuing his 17 years of service to the company he will be helping us as a Technical Advisor on science and technology issues. I am incredibly excited about the progress our company is making and the strong leaders driving innovation. Presumably that is a reference to other alphabet companies. These efforts to cure death and create smart contact lenses. Ruth comes into google that she will pare down some of these things. Maybe limit reaching in some ways. Eric came into the company with a goofy idea of letting smart people give highs salaries and explore things. He turned it into a very successful business. One of the most interesting things about his long career in technology was recognizing how the very latest development in technology would be very pertinent in the near future in enterprise and consumer facing technology. And the way the scientific developments might change products available from Silicon Valley and putting his company at the forefront of that. Emily the question remains is there anything more to this story . If he transitioning out because he is ready to transition out or is there more . Cory there have been discussions about him going to all kinds of places. There is wonderful stuff in the Scott Galloways new books. They said, we have to get rid of and hire eric schmidt. He has been moving away from the executive role at google for a long time with the move from ceo to whom a we broke this story. Emily i remember when that happened. It was 2011. Cory when we first started the show. Emily page came in as ceo and in 2015 he restructured and turned the company into alphabet. Cory he has had a remarkable career at Silicon Valley. He has also been very involved in the Silicon Valley. He has also been involved in philanthropy. I would not expect that to stop either. Emily cory johnson thank you , for giving us the more context. Didi has raised chuxing has raised 50 billion. Cash reserves at 12 billion. Some of the money raised goes toward Autonomous Cars and electric car charging networks. Facing coming up, facebook care is about getting influential people on this platform. Now the companys practice of working with politicians, some use it to silence opponents is under scrutiny. We will explain. This is bloomberg. Emily facebooks influence in elections worldwide continues to be under scrutiny. The social network says it is a politically agnostic tool, but the company actively works with Political Parties and leaders. The initiative is run by a littleknown facebook Politics Team that is neutral and works with anyone seeking or securing power. Bloombergs sarah frier broke this story. Fascinating story. What exactly does the facebook Politics Team and do . Sarah just like facebook does with celebrities or sports stars, this team trains politicians on how to best use the platform, teaching them about live video how to build a base of , followers all of those tactics leaders andwhen the up running for office and get elected, facebook continues to have a close relationship with them and continues to help them. Sometimes they turn it into a Campaign Advertising relationship. Emily this is no matter what their politics. You talk about being associated with some political leaders associated with extrajudicial murders. Sarah absolutely. Dutere was one of them. They have worked closely with modi, and with the far right party in germany the scottish , national party. This is something that facebook just does, broadbased across all kinds of Political Parties. They do draw the line at very strong extremists. They do not work with the far right for example. This is something that is looking very concerning today because we are seeing facebooks influence in our global globally in shaping elections. The fact that politicians are getting special training to use the platform and in some cases using it against their citizens, definitely is an uncomfortable position for the company to be in. Emily and you spoke with a former member of the team because she was uncomfortable. Uncomfortable with the way the team worked. Sarah right, my colleague spoke with her. She said the team was has started to help to create democratic relationships within societies and evolved into an election nearing strategy. Helping people get elected, helping them run their campaigns. She said she did not like how it was turning. Emily back to the question, if facebook is a neutral platform, why do they need to help politicians learn how to use it . Everyone else learns how to use it on their own. What are they saying about their role here . Sarah i think it goes back to their longstanding competition with twitter. We have seen twitter become the bullhorn for important people around the world. Our president included. Facebook has never naturally been that kind of place for politicians and leaders. So they have had to train and ease people into it. They have been very successful in getting these politicians to get massive followings on their network. From that perspective, it seems like a good idea. When you look at it from the context of now youre helping the people in power. But the citizens in some of these countries may be new to the internet and not as digitally savvy. It creates a power imbalance. Imbalance that facebook is fueling. Emily sarah frier, thank you so much for sharing that with us. We will continue to follow. Coming up, facebook is not only dabbling in politics it is making a push into music. Signing a multiyear deal with universal music. How this ramps up its competition with youtube, next. This is bloomberg. Emily facebook has signed a multiyear licensing deal that lets the social network carry songs and artists from the worlds biggest labels. Universal group will cross platforms. Under the agreement, facebook users will be able to upload songs under the universal label and share using through Facebook Instagram and oculus of the art technology. Joining us from l. A. , lucas shaw. Talk to us about the motivation. Lucas they have great ambitions in video. Mark zuckerberg has said video is a big part of the future of facebook. In recent years, any video that included a song say you are at your wedding and you dance to ray charles that video gets , taken down because you do not have the right to use that song and facebook does not have the right to host videos using that song. It has been a source of frustration for users and facebook. It tries to be a competitor to youtube as a platform where you can upload any video you want. This solves that problem for and in the long term gives the potential to improve their relationship with the music business so that it could get the right to professional video in the future. For the music business it has , been irritating for them to have videos violating copyright on facebook. It helps them establish facebook as a competitor to youtube. Another huge network with billions of users that can be a place where people upload video. Emily do you expect we will see deals like this with other record labels . Lucas yes. Facebook has been talking with sony and warner for several months. If not more than a year. I do not know if they will announce them or how, i would be surprised if they did not have deals with all three of the majors in the next few months. What does this signify to the competition, whether it is youtube or spotify . I think what you have seen in the music business, there has been growth because of paid Services Like spotify, apple music. Free has been an untamed wilderness. Youtube is where everyone goes. The music business is trying to bring order to what people can listen to for free and what they cannot listen to. Universal music, made a deal with spotify that gave them greater control over what music was available for free. With youtube, and a deal announced earlier this week, they got greater control over what music was available for free. If they get to a point with facebook where facebook is hosting full songs, they will exert a lot of control over what is available for free. The labels want to say, you can listen to full albums, any feature you want if you pay. ,but if you are not going to pay, you can only listen to certain songs. They have made a lot of progress this year toward that end. Emily quick question, only 30 seconds left. We are getting more dribbles about a spotify ipo. What is the latest we know . Lucas a report in the wall street journal said the fcc was leaning toward approving their plans for a direct listing on the new york stock exchange, which is an unconventional way of going public. It is not a huge surprise, but we had supported earlier the fcc was looking into it. L. A. Thanks shaw, in , you. Still ahead, our exclusive interview with bank of america chair and Ceo Brian Moynihan. His thoughts on bitcoin and why he is skeptical about bitcoin. This is bloomberg. Is this a phone . Or a little internet machine . It makes you wonder shouldnt we get our phones and internet from the same company . Thats why Xfinity Mobile comes with your internet. You get up to 5 lines of talk and text at no extra cost. So all you pay for is data. See how much you can save. Choose by the gig or unlimited. Xfinity mobile. A new kind of network designed to save you money. Call, visit, or go to xfinitymobile. Com. It is 12 30 here in hong kong. An update of the top stories. Congress passed the shortterm federal funding bill to keep the government running three more weeks. Pave current spending through january 19 and provide 4. 5 trillion for emergency pentagon spending. Trumps await president signature. Separatist parties won the election in catalonia, a defeat for the Prime Minister rajoy. Carles puigdemonts party exceeded expectations. 10 ys party took less than of the vote in the regional base. The catalan the public be the spanish monarchy. The most important thing to do is start a dialogue. Because that is the only thing mr. Rajoy has not tried. If they follow the wishes of the catalan people, we will find a solution. Fund saiduggling 1mdb it attempted to make an arbitration payment to abu c. Abis ipi it is the final part of a 1. 2 billion fund they agreed to settle a dispute. Global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. Lets check on how markets have been trading in the asian pacific. Here is Juliette Saly in singapore. It is looking good for the final trading day of the week. Most markets tracking higher. The regional index set for its highest level in a month, fit for weekly gain. A huge pickup and bond yields across the board. New zealand closed higher by 0. 4 . A rebound on the kospi, which fell significantly yesterday. It is firmer by 0. 4 . Australias market heading back to the january 2008 highs. Youe look at this function, can see this as 2017 and we are on track to get another monthly gain over the course of december, pending anything dire happening in the latter half of next week. The regional index is up over 1 . That means it has been over 12 it straight months of gains for the regional index, in what has been a very bullish equity year. Having a look at what is moving in the market, tech players coming back. You had a lot of downside from tech Care Health Care stocks. A couple drug suppliers try to get through, but that did not happen. The index up by 0. 4 . We are counting down to the reopen in china and hong kong. This is bloomberg. Emily this is bloomberg technology. I am emily chang. Our top story eric schmidt is , stepping down from his executive chairman rolet alphabet. He will continue serving on the board. The transition ends a 17 year career with the company. And small firms large are grappling with how technology will disrupt the financial industry. That includes bank of america. Under Ceo Brian Moynihan they have made strides such as ai and Voice Recognition to improve the Banking Experience for its customers. Moynihan sat down with us in an exclusive interview and talked about the transformation. Since i have been ceo i have been trying to do something. We are about 25 billion in coding. You start to think about that, that is a lot of feature functionality and improvements. It is about to 3 billion per 2. 5 billion year and a little higher when we do mergers and stuff. Its a talented group of teammates and a bunch of huge Computer Technology systems and analytical frameworks. That is what we do. Money is digital. Activity is digital. Knitting that together for our customers and teammates is huge. What will happen between improvements in Voice Recognition and artificial intelligence, data storage and retrieval and wifi networks, being able to transmit on a wifi basis, tons of data without having a battery go down in 10 seconds, all of that is important. Having all of the data in the world unless the person is going to act on it, which requires storage, or chievo, retrieval , analytics, and distribution, the last part you hit a note. The question is you have to have it all come together. The advances are tremendous. When we think about a voice or text added activated ,rtificial intelligence agent we think it will be about be a much better experience for customers who want to get the answer quickly. It takes hightech. We have a Million People come into our branches every day. We have to do a great job there. We have to do a great job with the 24 million mobile customers. And a great job with erica in that old build and it will interface alexa and other things. Number one thing, you can get ahead of the customer. And you have to invest far before the activity changes. All of the digital wallets we pay, apple pay, android pay, it is still a small percentage of it. It is growing, and a decade from now it will be a big number. But you have to have it in order to make it go there. It has grown 100 per year, yearoveryear. It is still a minor amount of payments that go out of customers accounts. Largely because they are still learning how to use it. We have to educate them. It is a tremendously great product for customers, we just have to drive it out there. Technology without human adoption we have invested. We think of ourselves as a Technology Driven company. We invest in cyber to protect those assets. When you put it all together, at the end of the day we are high touch and hightech, because you cant do one without the other. You say 210,000 employees at bank of america. Ise years, how many there a shift in the balance . Ryan it is hard to say, because we have to thousand more sales teams. You have to realize we are investing. As we downsize branches, we upsize the number of people. Everybody is technologyoriented the company has to be. , if you go downstairs in the branch you can see they are working off ipads and doing what you can do yourself, because it is the fastest way to do it. Are they coding . No. But they are serving Customers Using technology. Platform based on risk perception, which is growing quickly. It is a piece of technology, but still people need to get behind it. And also to answer questions, because customers never appear, they want to know, did i do the right thing . We have Financial Advisors in the branches. You say money is just ones and zeros. Does bank of america have a future, and what is it . Brian when you separate this question you have blockchain technology. That is most important and i think we have 37 patents already. The industry uses it in ways we have to figure out ways we can verify very complex transactions where a lot of information and money is moving together. When you talk about Digital Movement of money, one half is moved to digitally today. When you get to the anonymous currency thats a different , question. And that is a policy question whether we want an anonymous currency out there and that is where you see people struggle. David do you think we do . Brian i do not think we want it. The reason why the largest nomination is 100 bills is to make money harder to move. Other than through the verifiable system. I think that is a lesson a lot of the economy learned over time. As they brought the denominations down to improve the transparency of the economy, the ability to track it, have it come through. It helps you find all kind of interesting things. That is important for law enforcement. The speculation on what other people reflect on you see great debates on it. The idea of digitizing money is not new. The wire system is a digital system. The question is, what is exciting is when you can walk around bryant park and walk into the shops set up for christmas and be able to tap your phone or Something Like that as opposed to carrying dollars. Those are exciting things. To get the last mile electronified. That is exciting. Day, five of the them will be moving coin, currency, and checks around the system. If i can take that down in a safe, verifiable, know your customer that is a very valuable thing for us. And to ripple that through the industry. We could pay them to reprint the money rather than having to cycle it back in and out because it was cheaper to move it around. Emily that was bank of america Ceo Brian Moynihan speaking to bloombergs david westin. Fox lostd 21st century their bid to keep sensitive business documents out of the antitrust case. That pits at t against the justice department. Disney thought to shield the information they have with paid companies to distribute programming, as well as data on revenue, pricing, and subscribers. The u. S. Government seeks to interview as many as 60 witnesses ahead of trial. Coming up, the crypto craze was one of the biggest stories of the year as we look back on 2017. Highlights from our conversations. This is bloomberg. Emily from bitcoin to ethereum the value of the cryptocurrency exploded in 2017. One of the biggest players is coinbase. It almost tripled its user base, now standing at 13 million accounts. We caught up with the Ceo Brian Armstrong to discuss the growing interest in cryptocurrency. There has been an influx of new interest in Digital Currency. Part of that has been driven by institutional money getting interested in the space. We have seen most of the larger derivatives exchanges starting to say they will lift bitcoin futures. It is a big signal traditional Financial Institutions are starting to move into Digital Currency. Is trading these contracts mean for you does it create new challenges . It is a big endorsement of the currency space. Is it it is an asset class more and more people are going to trade. But we offer spot market data to a number of these providers we are discussing it with them. , we run the largest digital institution in the united states, called gdax. We offering a custodian product where a lot of investors need a , place to store Digital Currencies on behalf of their lps and their clients and we launched a product for that called coinbase custody. Emily are you worried your clients might decide to go work with traditional, mainstream a wall street Companies Rather than coinbase . It is certainly an option. There will be more and people more and more people involved in this space. It is a good thing. There will be a diversity of players. There will be a lot of winners. Digital currency is moving so fast, i do think the company dedicated to it with 200 people who built up Industry Knowledge over the last five years will have a sustainable competitive advantage. Emily the irs has been asking more questions about your holdings in profits. What are you hearing from clients about this . Irs issued a subpoena for all customer records over a several year period, which was unprecedented. We did push back on that strongly. We took it to court. The judge gave us a big vote of confidence and they reduced the scope of the irs request by 97 . It wasnt down to zero, but it was certainly a partial victory. If you look longterm we want to help people pay all of their taxes on Digital Currency gains. I think this should look Like Fidelity or Charles Schwab where everyone gets 99 statements. It should be that simple. We are working with the irs thankfully to make sure we come up with a solution where everyone can pay their taxes. But it is a new area, Technology Fines and new box and does not fit into the existing framework perfectly. We need to work with everyone. Emily given the uncertainty currently are you giving advice , to your clients about how to report their gains to the irs . Brian we try to stay away from tax advice. That is not what we do. But we do provide them a cost basis report they can send to their accountant. That is the solution we have in the interim until there is Something Like 1099s. Emily lets talk about some of these other currencies. Ethereum and lightcoin. What do you see happening with ethereum versus bitcoin in the future . Brian they have sort of evolved down different paths. Bitcoin used to be 95 of all the market cap of Digital Currency. But it has come down quite a bit to 50 or 60 . Bitcoin is ending up being a little more like digital gold, kind of the oldest Digital Currency, the one people flee to and times of uncertainty, but it has not scale to become a Payment Network with paper transactions like people might want. Ethereum is doing more transactions per day than bitcoin. They also have the contracts, it is more programmable than bitcoin. Bitcoin you cans ink of as a simple, four function calculator. You can send a to b, or subtract lead to a. Ethereum is like a programming language where you can run any software and run it on a globally decentralize computer. It is a mindbending concept, but it is much more programmable. Emily when it comes to the price, how do you see bitcoin versus ethereum playing out . Do you see the bitcoin spike continuing . Do you see ethereum surpassing bitcoin, as some have suggested it will . Brian yeah. I never want to give investment advice. But in Broad Strokes how i think of it, bitcoin does have a certain amount of guaranteed scarcity. There will only ever be 21 million coins. If something is more scarce, the price can be driven up. Ethereum has taken a different approach. Which is there may be a moderate inflation curve like they may target a 2 to 3 inflation rate per year. Ethereum is not gold like bitcoin is. It is more like a Payment Network or something more programmable. That factors into what the price will be. One broad thing you could look at is where are the users going and where are the developers building the new apps . I personally see more Developers Building Apps on top of ethereum today. Ceoy that was coinbase brian armstrong. Breaking news from spain. Catalan separatists have won the Regional Election in a big blow to Prime Minister mariano rajoy. You are looking at live pictures from barcelona. A significant step for a potential independence of catalonia from spain. This is bloomberg. Emily lets keep taking a look back on some of the biggest interviews of the year. Amazon says the switch to the cloud is just beginning. I sat down with Amazon Web Services ceo in seattle and asked if the growth of the unit has surpassed his wildest expectations. It has certainly grown fast and i dont think any of us would have had the audacity to predict it would grow as fast as it has. But i think we always believed it had a chance to be a significant business, and that is because just inside of amazon, are really Strong Technology company, we had a lot of internal Development Teams that wanted help moving faster and more cost effectively in building their applications on top of a technology platform. The fact that amazon wanted it made us think that a third party would have wanted it. I dont think we wouldve predicted it would be a 15 billion business growing over 40 , yearoveryear. I dont think we would have predicted we would have the several times the size business of the next 14 providers combined or that we would have millions of active customers, or a six to seven year head start. All of those things were big surprises to us. Emily of course now your competitors want this, too. How do you make sure amazon stays in a leading position . It is not a surprise to us that every Large Technology company in the world wants a replica of what we have done. It is a great Value Proposition for customers, that is why it is being adopted so fast. Others want to participate. I think there are real differences between platforms. The first thing, Amazon Web Services have a lot more functionality by a large amount and anybody else and we are also iterating at a faster clip. The gap and capability continues to extend. There are different ecosystems around these platforms. It is not just the thousands of systems integrators. Isp providers will adapt to work on one technology platform. Very few have the time to do three. And it all starts with aws. We have such a significant Market Segment and leadership position. I think the maturity of platforms are in really different places. We have this expression internally that there is no compression algorithm for experience. Thats because you cant learn certain lessons until you get to different elbows of the curve in scale. They have not learned to those lessons yet. You see those in all kinds of manifestations. Emily you just added ge as a customer. You lost spot a fight to microsoft. Tell us about the length you are going through to not just get new customers, but keep the customers you have. We have millions of active customers. We have millions of active customers. It spans the gamut. Startups have built their businesses completely from scratch on top of aws, these are businesses like pinterest, airbnb, robin hood, over the last three years the enterprise and public adoption has dramatically increased in the cloud and aws. You see every meaningful vertical business in aws. Gas, shell, bp, has, Capital Service Financial Service capital one, bank of australia, and a manufacturing ge mentioned they are moving 9000 applications in aws. Netflix runs everything on top of aws, even though we compete with them in our video business. In the public sector, we have more than 3000 Government Agencies worldwide using awa aws. Emily that was Amazon Web Services ceo. That does it for this edition of bloomberg technology. We are Live Streaming on twitter, check us out. That is all for now. This is bloomberg. The following is a paid advertisement for the threeweek yoga retreat brought to you by beachbody. Leeza are you a woman of a certain age . 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