Videoconferencing service that has taken the world by storm. That is zoom. This is a service that has been a lifeline keeping families and businesses together, but he has also been dogged by security issues, privacy issues, zoombombing. Ceo aboutth the zoom what he is doing to combat all of this. Lets take a listen to that conversation. Beautiful. Time, they do not have an i. T. Team. We give them a very strict security. Password. Emily i want to give you a sense that i want to get a sense of what it is like. You go from 10 million to 200 million users in the matter of a week. Funerals and schools and families celebrating passover. Hard are working extremely for almost a month now. Capacity and the traffic and make sure the service is up. It is really, really challenging. Cost and alln the of our employees working so hard. We have had pr and privacy issues. Banned by have been school districts, the governments of taiwan and germany for official use, google. Tesla, spacex. How many customers are you losing as a result . We are still in the process of working together with new s department of education. We are still in the process. Some of it has been a bit misleading. We are making a change. Can to focust we on security and safety is very critical to us. What are the true facts . Zoom is secure. Zoom is safe. Egarding zoombombing some meetings are very random. Minor andhis is very random. We know which customer, which account, which meeting has a problem. A lot of misleading information. Anyway, we are working on that. Of you have warnings from the fbi. You have been sued by a shareholder for allegedly concealing the lack of encryption. Senator Elizabeth Warren is concerned about kids. What is your response to all of this . The fbi is involved and we share the same goal. I am very excited to know that the fbi is involved. We do encrypt our content. Last august, we have changed our meeting climate. Because the internal process was still a startup company, i think it is more like inconsistency. Have any formal investigations been launched that you know of . Note. No. Emily lets talk about encryption. You are focusing all of your Engineering Resources on encryption and privacy. What is the timeline for true endtoend encryption . I came up on webex. Microsoft, the same thing. For this meeting, you might have used a phone call. I do not think anyone at this ent emily do you think your project is different from microsoft teams, google meet, webex . This is the industry standard. Emily he recently hired the former chief Security Officer at facebook. He is working for you as an advisor. What is he telling you . They are working together with us. Aey know that zoom is trustable company. Alexs one of them. We review the process. Before this crisis, we were a growing company. Suddenly, we have so many users. This kind of work should be done in three years. We never thought about this process. We had to improve almost overnight. Emily have you learned anything from the privacy like a facebook or other Tech Companies who have been fighting this for several years in the public eye . Privacy first. Security first. We wanted to transform our securityto a privacy, first company. When it comes to consumer use, it is a privacy call. I want to talk about schools paired your children i want to talk about schools. Your children are using zoom now. Have you had any learning there seeing a product through a childs eyes . My daughter uses the product she feels very comfortable. For our family, we had several zoom sessions at the same time. Emily lets talk about schools and how you are molding the product to work for schools. Can you convert some of these schools to paid users . How can you assure them that this is safe . And that they know how to use it correctly . Ofwe have made a lot changes. You need a password. We do not think about monetizing it at all. This is the time for us to show our social responsibility. We are fixing all of the issues. Years, we look back, i want everybody to remember this. Regardless of the negative things, we just need to move forward. Ceo, you can catch more of our conversation on bloomberg. Com. We will be talking about intel teaming up with medtronics to add Remote Monitoring. For would reduce Exposures Health care workers to patients with covid19. Off 1000 workers, also furloughing another 1100. Eventbrite laying off 45 of its workforce. We will continue to cover these headlines as they roll in. We will be back after this quick break. Emily intel announced this week of 50 million pledge to Coronavirus Response technology. This in addition to 10 million in donations to support local communities. Running the on the phone is intel ceo bob swan. I want to start on this ventilator announcement. You are teaming up with medtronics to add Remote Monitoring technology, which would enable doctors to adjust the ventilator from outside the room and away from dangerous exposure to some of these patients. Talk to us about this technology and how quickly it is being used in two hospitals. How quickly it can be scaled up. Bob good afternoon. Thank you for having me. I would start with the pledge we made the other day, which in essence is to leverage technologies we develop at intel and make them rapidly accessible in a variety of different ways to help combat this pandemic that we are all collectively wrestling with. That is what we set out to do. We play such an Important Role in the Digital Infrastructure where technologies go inside everything that touches the life. Ers everyday ies touch virtually everything. Widows capability is with those capabilities comes a real sense of responsibility. 50 million fund is our commitment. Medtronic is an example of one of the many things we have embarked upon. Access too get ventilators, number one, and number two, to reduce exposure for health care providers. We enable the ventilators to have Remote Monitoring capability to reduce exposure. We Just Announced we came up with the idea with the medtronic team a week or so ago. The capability is already on trial in two hospitals. Upwill dramatically wrap it ramp it up and increase capacity in the Health Care System and reduce exposure for health care providers. An example of the many things we are trying to do to combat this disease. Intel i know parts of your business has been business ansential an essential business. Withou still keeping pace 90 of orders . Bob yes. We have had 90 of our local capacity has been up and running throughout the course of the First Quarter, not just the capacity but the ontime delivery that our customers expect from us. Our global footprint, despite challenges, the things that we do are critical in general for the Digital Economy to operate. Specifically, in these particular times, the needs for schooling at home and a computer at home and or the need to access the internet, all these things in this Digital World require our technology. It has been extremely important for our teams around the globe as an essential service to meet the needs of our customers and to meet the needs of their customers. To the credit of 110,000 intel employees around the world that i am extremely proud of how weve been able to deliver for our customers while keeping our employees safe. Hearing there has been a surge in laptop demand. Is that what you are saying . Bob you know, yes, it is. Our expectation coming into the year is relative to the First Quarter of 2019. We expect the demand to be relatively strong. We saw that demand pickup during the course of the quarter. , wheretime that followed things were slow initially but they picked up in europe and then picked up in the u. S. It is somewhat logical and intuitive. When our lives are disrupted and we need to do more and more things from our home, we need to ensure we have the technology at our disposal so things can go on as normal as possible. Demandat has meant is for more and more devices, including pcs, to be available for parents to continue to conduct their work and for kids to continue their education. We have seen demand kind of relatively strong during the course of the First Quarter. Emily other companies have indicated that Cloud Service providers have been ordering heavily to meet the demand. Is that something you are seeing as well . Bob yes, it is. We are a very diverse business and you highlighted two of the particulars, the needs for pcs to work from home and to be educated from home, and also needs to be connected. It needs to be connected, capabilitiesthose are powered by intel technologies. The demand to be connected goes. P emily intel is part of this huge Global Supply chain and i am wondering if you can give us the color of what you are saying , how badly was the supply chain hurt during the crisis . What are you preparing for in terms of the supply Chain Disruption as the virus continues to spread . Bob i will give you some general observations. I think a little more specifically for us, yes, in fact, we have had we have a very large Global Supply chain. Ways,n january in some when supply chains were disrupted because access to some components coming out of china was somewhat constrained, we were not as affected as a outlook foruse our the First Quarter provided our guidance back in january was relatively strong. Our employees were working through the chinese holidays. Worked rightthey through the holidays. We were able to keep capacity up and running essentially throughout the challenge as it went around the globe. The challenge since then has been to work extremely proactively with governments, states and governments, to ensure that the definition of essential services is well understood so we can keep our operations going. But also to be extremely cautious in ensuring that our number one goal is the safety and wellbeing of our employees. Rapidly deploying best practices, if you will, on social distancing, constant cleaning, limit the number of essential people required to be at the office. When we are building these products, it is first and foremost ensuring that we are looking out for the safety of our employees. Our expectation is that it will continue for a while and our priorities will remain the same. Employee welfare, delivering for our customers, and ensuring we are leveraging our technologies to give back to the communities we operate in so that we can get through this pandemic. Know, the markets have been extremely volatile. We are in the midst of a recession. I just talked about yelp laying off thousand people, eventbrite cutting 45 of its workforce. No one knows how long we will be dealing with this. You must have some sort of operating assumption. What do you think the economy looks like coming out of this . How hard has this hit the tech economy as well . Bob it is very hard to stay. Right now, as i indicated, we have a very large and diverse set of technologies, capabilities, and demand is softer and in other cases, demand is much stronger. Now, it is focused on keeping the Global Supply chain growing supply chain going. As we do that, to be able to p back and get a sense what is the Second Quarter . What does the second half look like for a Diverse Company like ours . Gets clear, deliver for our customers and do some Contingency Planning as we get more clear signals of what the Second Quarter and second have numbers will really be like for us. Emily some ceos are telling us usy they are prepared for their employees to work at home for six months. You think it could be another six months . Bob we have to plan for all sorts of ranges of scenarios. Whether it is six weeks or six months, the implications are the asand for essential services our normal way of doing things is disrupted, the need for our technologies will grow and grow. Therefore, whether it is six days or six weeks or six months, it is critical for us to deliver for our customers and for our employees and for our communities. Emily bob swan, really appreciate you taking the time. Thank you so much for stopping by. We will be talking about the virtual neighborhood, how neighbors are keeping neighbors protected through this crisis. We will talk to the ceo of nextdoor, coming up. This is bloomberg. Welcome back to bloomberg technology. The rise of the virtual neighborhood, neighbors across the country are turning to nextdoor to communicate, to barter, to run errands for each other. In my own neighborhood, we organized a neighborhood clap for health care workers. There is also a dark side to some of these communities. We spoke about that with nextdoor ceo sarah friar. Take a listen to that conversation. We saw people asking for information. It was important that had the most accurate realtime information. Governor newsom in california, Governor Cuomo in new york. Beyond that, we started to see people asking for help or giving help. Initially, i want to help you, what do you need . It took a little while for people to put their hand upon the other side. We see people running grocery errands for the elderly are getting a prescription for someone. Then we started seeing more specifics. Parents, how will i deal with that . Businesses. Local the conversation has shifted gears into i love my local business, what can we do . Emily before we get to that, User Engagement has soared, upwards of 80 . Talk about how much more engagement you are seeing. Sarah we have seen daily active users of 80 on a month over month basis. We have seen a lot of net new people come to the platform as well. Nextdoor is in 11 countries so we have seen it in italy, spain, france, the u. K. , australia, canada, the u. S. Is in every community. It really has not mattered. They all come to the platform right now because they see the need and there is power in proximity. Through other it demographic information. We see no difference. It does not matter who you are, your neighbor is often who you need to turn to. Emily helen, you are on nextdoor as a business. How has it helped you . Appn we Just Launched an at equator coffee. I went to nextdoor to announce that. Coffee shops are where the local community goes. Digital has become that that and being able to put on immediately, we got so many responses. Everybody showed up. We wanted to make sure we had precautions in place. We had an app so it was totally cashless. Anything we can do to try to roasting coffee and those raised as our behind the bars those baristas behind the bars. Emily it is also been a place where it collects fear mongering, complaining, conspiracy theories. M wondering you are doing i am wondering what you are doing about these things at a time when people are really scared. Sarah it is critically important and we take it seriously nextdoor. Take it seriously. Nextdoor has community guidelines. Technologyated some that if you post something about covid19, it asks you to think about it. Make sure it is coming from a source that you trust. When you talk about social distancing, make sure you talk with compassion. Beyond that, we want to make we reward people for showing right behaviors. We have added the ability to like something, to love something and to react positively. It has really started to come into its own. Closely with public agencies and because nextdoor was founded on trust, because we verify members, people trust the information they see their. See there. Is making it a need for people to go to daily to check. Emily the verification process is quite intense. Having come through it myself. One of my own neighbors had a post about suggesting that you tell your gardeners to stay home but pay them anyway. Responsespreciate any they try to clamp down more recently. It affected the culture of those platforms. What is your philosophy in terms of letting people be themselves, which might not be sometimes polite, and creating a community that is healthy . ,arah when you join nextdoor you are joining a neighborhood community. Our purpose is to cultivate kindness. We are explicit about that. We are not a free speech platform. We are very much a platform that is about moderation. Neighbors can clearly moderate content. You can say this content is not appropriate. We will often put up we have one called kindness reminder. Show vitriol, it is usually because they are in the moment. A lot of platforms drive you to faster engagement. We want to slow you down, which is why we do that pop up. We want you to think about why that thing youre about to say could get reviewed in a future state. People behave better when they think something is getting reviewed. We haven refugees seen a huge impact from the kindness reminder. We do not setback at all. We very much lean into this. Sarah friar and helen russell. Digging in a little bit more around tesla, their production suspension, employee layoffs that drew widespread scrutiny earlier today. Story that is being held up by people who wanted to believe that on the cutting edge orwhether an economy whatever it might be. I keep coming back to this tired old this is a car company. It looks exactly like a car company. It has been trading more in line with the car companies. It has to lay people off like a car company. Not like the Silicon Valley Software Company. It has manufacturing plants like a car company. It has a lot of debt like a car company. Convince can themselves all they want. This is a Software Company or this some Media Technology company. The numbers belie that. The numbers show that this is a car company. Anymore. Ot a start up at some point, investors will have to say, ok, they are all in this space and ev growth was negative last year in the u. S. Units were down. It is a car company and so far, that has not been the correct call, i will admit. I hear what you are saying. Get specialeem to treatment. China giving them special dispensation. Jim in case you have forgotten, i am not positive on anybody having anything to do with china. Think china exposure ultimately turns out to be a negative for this company. One of the things that has been lost in the coronavirus news flow has been a really severe deterioration in the u. S. Chinese relations in the last four or five weeks. W westerne journalists out, as you know. Embracingo sure elon shanghai and the Chinese Communist party is going to be a positive. Lets talk about that. One of the Big Questions that people will have, even after the world returns to something resembling normal, by which i mean it is safer people to go back to offices and to travel, everyone is asking, what is going to change . There will inevitably be something different. Thatare some ways u. S. China relations will change . Jim the biggest change will be have a businesses look at the supply chain issue . That is the thousand pound gorilla. Will companies that are dependent upon china for essential parts for their businesses move production out of china . What is the political situation . Whether it is President Trump or president biden. How does china fit in that . I think things are hardening rather than softening. Some of these headlines out of , a year ago, would have been unbelievable. Because of the virus, we put them on the back pages. Chanos. Im we will be talking about jeff bezos visiting a warehouse in dallas as the Company Struggles amidst this coronavirus crisis. We will talk to our reporter who covers amazon, coming up. Emily amazon Ceo Jeff Bezos made a surprise visit to a warehouse in dallas this week. The company is inundated with orders but workers are protesting safety conditions and conditions at these warehouses in general. I want to bring in our reporter who covers amazon from seattle. We did not know jeff bezos will be making his visit. What do we know . We saw some pictures yesterday on social media where some warehouse workers were surprised that jeff bezos was in town. This is a Fulfillment Center in dallas. He was wearing jeans and a mask and rallying the troops. There have been a lot of news there has been a lot of concern about the workers in this warehouse. Later did put out a tweet featuring some video footage of him Walking Around the facility. Emily talk to us about where they are. They just instituted some new guidelines telling workers to wait 24 hours before touching a package . A messagehere was from a warehouse in eastern pennsylvania that went out to some workers that ringing alarm because workers were told that any shipments from this one particular facility in hazleton, pennsylvania, to let those packages sit for 24 hours. That facility is one that takes in shipments from all over the place, even overseas, bricks them down and send them out to other breaks them down and sends them out to other Fulfillment Centers. Some people were on some people were told, if this from thismes facility, leave it rest for 24 hours. This really spooked workers. Amazon is saying it was a Good Intention message sent erroneously. Someone bungled whatever they were told to do. It sent a scare around workers in that particular facility. They have had more than 20 cases. It is a high level of cases at that facility. It is a community that has been hit pretty hard by this coronavirus outbreak. Emily i know reportedly we are talking about 50 or so warehouse is across the country where employees have reportedly tested positive. I know it is a fastmoving story. Amazon has Just Announced an effort to make its own coronavirus test. Amazon just put out an announcement within the last hour that there is the shortage of tests and they were acknowledging all of the concerns about people working in its facilities and a major concern among the workers, ok, we have got all of these rising number of cases. It is a matter of people getting infected elsewhere. Because there is such a shortage of tests, amazon is saying, it makes sense for us to test our workers but they have launched this effort to make their own test. They do not know how far they will get with this or even if they will be able to produce a functioning test before the situation ultimately blows over, but they are putting some effort into producing their own tests nonetheless. Know it iscer, i something you will continue to follow. Keep us posted as the story evolves. Coming up, we will be talking about apple. Tim cook holding a q a session about the coronavirus. This is bloomberg. Emily apple employees worldwide will soon have a chance to voice their concerns directly to tim cook about the impact of covid19 on their work. The Company Plans to hold a q a session later this month. Joining us to discuss is mark gurman. What do we know about this . Thank you so much for having me. This is going to be a very rare virtual town hall for apple. This will be the executives and the apple employees. Employees have been encouraged to send in their questions to the executives to be addressed during the town hall. It is a companywide all hands meeting. Geared to thes Current Situation this april one is geared to the current covid19 situation. Emily the company has been pretty upfront about their closed stores in china and around the world. What are the main issues . Mark the thing i am hearing , workingover again from home, there is no way to matchat productivity that productivity. They have kids at home, right . They are dealing with homeschooling. They are dealing with spouses in are also doing their work Silicon Valley. This is a difficult thing. Job. No longer a 9 005 00 there is the constant need to be connected to their webex meetings and always being around from that perspective. There has been the challenges of apple austrias secrecy apples secrecy. Secure is another concern that is top of mind during this pandemic. Emily apple has been pretty active having some of their manufacturers working on masks, working on face shields. Talk to us about all of those efforts and how it impacts the work apple has got to be doing to keep the Company Going and making sure they had their numbers. Mark it is a very good question. Obviously, it is a balance. It seems like tim cook is setting putting the priority on these face shields, the masks. The face shield is no joke. They spent a couple of weeks designing it, working with suppliers and manufacturers. I see a different headline every day from a different state that says they have received 100,000 new masks from apple and tim cook. A lot of the products they have iplanning for 2020 really dont think any of the i do not want to speak for tim cook, but i think there is a part of this that does not really matter if there is an impact on apple products. Tim cook does believe in doing the right thing. Emily last question. Apples earnings are coming up, along with many other companies. Any early indications . Mark i dont think the march numbers are going to be pretty and anyway. We are pretty in any way. We have seen over the course of this quarter all the china stores being shut for a period of it. Day, that all the china stores reopened, the stores outside of china closed. They have been closed for a side, thatn the u. S. Is a lot of money. It will be interesting to see if the ipad launch toward the end of the quarter or the new macbook air as well as people downloading more apps to bolster that. Emily mark gurman, thank you so much. Thank you so much for sticking with us. This is bloomberg technology. I am emily chang. These days you need faster internet that does all you expect and way more. Thats xfinity xfi. Get powerful wifi coverage that leaves no room behind with xfi pods. And now xfi advanced security is free with the xfi gateway, giving you an added layer of network protection, so every device thats connected is protected. Thats a 72 a year value. No one else offers this. Faster speed, coverage, and free advanced security at an unbeatable value with xfinity xfi. Can your internet do that . The virus may be reaching its peak and the markets get their hopes up at least for a day or two. I am david westin. This is bloomberg wall street week. Welcome back. Another week of the coronavirus and as it continues to spread, the death toll mounts. This week at least a glimmer of hope as numbers started to come down in italy and spain and even here in new york, it seemed to plateau. There is a lot of damage being done to individuals and Companies Across t
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