tv Bloomberg West Bloomberg March 20, 2015 11:00pm-12:01am EDT
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i'm cory johnson. here's a check of your bloomberg top headlines. u.s. dollar headed for its steepest weekly decline since may of 2009 after the fed said it will be slow. the head of global currency strategy. >> there's some juice left in it, but we're at the beginning of the end. this is not the time to turn bullish with a fancy forecast. most of the meat of the dollar bull run is done. >> meanwhile the euro rallied on
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optimism a deal can be reached on the greek bailout. they'll receive additional funds next week. deutsche bank cuts the compensation of the ceo by 11%. he received $7.2 million in compensation last year. deutsche bank's stock was the worst performer among global banks even though profit did improve on lower litigation costs and investment results. a former rap mogul collapses in an l.a. courtroom after the judge set his bail at $75 million in a murder case. his lawyer his knight hit a chair as he fell and was denied access to medication in jail. the fourth time he was taken by ambulance in court since he was charge in february with running over terry carter.
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the world health organization says monsanto's popular weed-killer, roundup, probably causes cancer. reports says limited evidence says the chemical can cause non-hodgkin's lymphoma and lung cancer with convincing evidence it can cause cancer in lab animals. it says it's inconsistent with health tests from the u.s. and eu. monsanto's revenue is closely tied to the sales. and tinder, the ceo tweeted today, it's a match. i swiped right on tinder. shaen shane is replacing shaun red, one of the company's cofounders. he was running core's shopping marketplace in north america until he left late last year. the gender discrimination trial is taking a new twist as closing arguments approach. matt murphy testified he pleaded
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with pau to improve her performance and her gender had nothing to do with her firing. he says she was prone to conflicts and didn't respond to advice. joining us now is bloomberg view columnist katie benner. you were there at the trial yesterday, i understand? >> yes, i was. >> what was it like? sounds fiery. >> the trial has been really, really interesting almost every single day. basically what's happened is the defense did a very good job of painting ellen as a very difficult employee. she did a very good job of establish establishing that case, her likewise did a very good job of establishing that case. they had a great witness come in and talk about how she had been sexually harassed and how the firm handled that. it really set the tone about how
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the firm didn't understand basic hr issues. that was great for ellen. >> so basically the stage was already set, this was a place where sexual harassment happened. >> discrimination or an inability to deal with having women in the workplace who wanted to be just as aggressive and successful as the men. over the last few days, you've seen the defense come in with 17 witnesses, the last two are today, and each one has found a way to portray her as someone who is very difficult to get along with. the question, did ellen not succeed because they discriminated against her or simply because she was difficult to get long with and didn't take advice, didn't improve and didn't get along with her colleagues? it's interesting. they're not mutually exclusive, right? she could have been a crummy venture capitalest and been harassed because she was a woman or beyond. >> exactly. i think this is going to be a
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very difficult case for the jury to decide. i think closing arguments should start tuesday or wednesday, hopefully tuesday. and then they'll deliberate. it could take a while. they've asked very, very thoughtful questions. it's been clear they have been listening carefully, thinking a lot about what's happening and the judge has told them they can take as many days as they want. >> what matt had to say was very interesting. but the notion his notes were dated after the suit was filed, talk to me about what that was like in the courtroom. i'm hoping it was very dramatic a law and order moment. >> i believe that moment actually happened the day before yesterday. it was one of the situations where if you look at what happened ellen's lawyer smiled, ellen smiled. everyone sort of went, aah, now it comes out. they are trying to establish that he was she say she saywas retaliated for suing.
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that they might not have wanted her there but suing was the final straw, and they started building a case against her. it was a very, very interesting twist. there was a telling back and forth exchange with a friend who worked at google, who walked her through, this is how you collect e-mails and ims, some sort of legal action. clearly she was thinking about about this quite a few months prior to filing suit. they portrayed ellen as a person who in a very calculated manner
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was gathering evidence and created a case. do you think that had enough of an effect to undo all the time that -- she started the case saying she was a litigious person first and also a crummy venture venture venture capitalist. was it convincing to say she was just as litigious, thereby throwing out that argument? >> i can't say what the jury would think for me. >> it's hard for me to believe that if an employee sues his or her employer, especially at a firm that tiny, that it's not going to create problems in the workplace and it's possible the tensions did rise soon after she filed the lawsuit. >> there was a lot of money at
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stake. >> and the partnership. >> and the partnership. this is not a large, publicly traded company where there's a big hr department that comes in and knows how to deal with this stuff. as we've seen again and again, klein kleiner desperately needed an hr department to deal with these kroefshsz controversies. i'm going to reserve judgment on that. it doesn't surprise me the firm would be very defensive and start finding additional fought on her work when she felt it was on appeal. >> so there's sex, finance, lawsuits. >> a lot. >> great story. is it going to change anything in silicon valley? do you get the sense when you talk about to people around here that it's changing? that's a quick no. >> it will change something, but i think people bill will take hiring an hr person a lot more seriously now. small partnerships will understand having the value of someone hired to do nothing but handle these sorts of issues, and that's great but i think that historically when you look
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at other industries, media, or our industry, finance. it takes a big class action suit to really change a culture. morgan stanley was hit with a couple of class-action lawsuits saying they were demonstrating against women in and their asset management division discriminating against minorities. it did help change the way wall street treated minorities. in the media, news week was famously sued by all its female staff saying they were discriminated against because they were women. these big settlements are eye-opening and force some sort of change, at least in the rules. it's hard to do that when you have these tiny firms. >> katie, bloomberg view columnist. great to see you. >> to another big story, everyone is talking about the business of march madness. the fans can't get enough on the games. thank you, betty. i know i'm at the bottom of the bracket. shelby hol holliday is joining
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me from new york. how are your brackets? >> my brackets are practically busted. thank you, iowa state. smu lost. it was a tough night last night. >> the digital experience going on here across all media, i think more so than ever before, people are online. people are doing the brackets online. the audience watching things in duj digital. >> when i was researching the segment, i was having a flashback to last year watching games on my smartphone because it's so easy to do these days. the digital audience is doubling every year. it's relatively new, it's up about 50% year over year. in 2014, 24 million people watched on mobile devices. 25 million on desktop. 11 million on tablets. the tournament did 70 million live streamlines last year and this statistic was particularly striking to me. there were 15 million hours spent watching the games on live streams and that was 5 million more than the winter olympics in sochi.
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so that just gives you an idea of the interest, especially on digital, for this tournament. turner and cbs sports have done a really good job broadcasting these games not just across television networks but across devices. i spoke with david levy, the president of turner broadcasting last week, about their strategy. let's take a listen. >> one of the things shaun talked about early on when we talked about the opportunity to televise this event and invested in it, we were hoping at some point advertisers would realize they should produce commercials for march madness. if you take a look at the sponsorships now that are happening in march madness, whether it's buffalo wild wings or capital one or coca-cola or at&t, you take a look -- unilever, they're producing spots for march madness. they're developing content for the event itself. both digitally and on television. and when you get to that phenomenon, you know you have a huge success because they're realizing it's part of their
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marketing campaign to move product off the shelf. >> and cory, it's not just advertisements. it's social media. we've seen -- we saw yesterday too that there's a possible partnership with snap chat, brands are starting to afterwards r advertise on facebook, twitter. the tournament is all over the place. you can't get away from it right now. >> the twitter thing is interesting, as well, because i feel like sort of it amplifies the conversation. twitter has talked about a lot about how they work so well with tv in particular, that they really sort of drive people to it. my twitter feed is usually filled with people talking about stock fraud and finance, but even now it's overwhelmed with the upsets in the ncaa. >> it's sort of this cycle of revenue because you have twitter driving people to watch the games, you have people watching the games who is who see some
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sort of hashtag online and go to their devices. it's a huge revenue honest. there were more tweets, also than the bcs championship and the world series combined. to your point, tons of talk on twitter. david levy also talked about what these -- what the companies are doing in terms of the digital space of another. i have another bite for you. take a listen. >> march madness live, the apps you can download for free, basically gives you the opportunity to watch any games at any time they're telecast. it gives you the opportunity to be in social. it gives you the opportunity to talk to your fans, other fans. opportunity to share clips and highlights and see what's happening in your brackets, because there's also a bracket opportunity. >> and cory, bottom line this tournament generates more than $1 billion in advertising revenue. it is the most lucrative postseason sporting event if you don't include championships like the super bowl. digital just adding to a huge
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west. google amazon takes a big leap with a green program. and also iphones are helping those that are visually impaired. now top headlines. president obama is wishing the people of iran a happy persian new year and urging them to support a nuclear deal with the united states. >> a nuclear deal now can help open the door to a brighter future for you, the iranian people, who has heirs as heirs to a great civilization have to give the world. this moment may not come again soon. >> talks in iran's nuclear program will resume next week. they're california congressman
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maxine waters is calling for an investigation into citigroup demand demanding answers after the bank failed to pay 24,000 people money over foreclosure boss. bloomberg news broke the news earlier this month about the borrowers that didn't receive compensation. >> turning now to diversity among silicon valley workplace. google's executive eric schmidt, took some heat. eric kept interrupting as they talked and one audience member called out schmidt for his actions and the audience erupted in applause. what are silicon valley doing to diversify their workplaces? john joins us right now. what's going on in the field in terms of recruiting women, and has it changed?
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john:00 it's completely changed. may of last year, when google, the company we're talking about, decided to inunveil for the first time their diversity statistics. as google goes, so goes the valley. dozens of companies unveiling their statistics. we're coming up on the one year anniversary of those numbers. when those numbers get unveiled for the second time, if the numbers go south, there will webe a lot of head-scratching. you're seeing companies now, and we work with many of them, scrambling to figure outer, how they, how do they improve their diversity pipelines in a short amount of time. >> that's fascinating. as a recruit, you get hired to bring these people in. are they saying, no more dudes? >> we have a software platform. but for the conversations we're involved in and hearing from people is not so much, no more dudes, because that wouldn't be the right way to approach the issue. it's, we want to make sure we hire the best person, but we want to hire the best person from a diverse pool ofplicates
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applicants. if we're reviewing 20 dudes, we're probably not doing what we should be doing. how do be bring more women, african-americans, hispanics to the table. what's what we're hearing in spades from the tech companies. >> the approaches that are well intentioned but not smart what are some of the approaches that people take that don't work? >> historically the efforts have been, let's post to a job board that have a higher number of women or african-americans on that job board. a career fair with the same demographic makeup. we don't think there's anything wrong with that, we just think it's grossly the in efficient. there are better ways with technology and data to find out who those people are. >> i was at south by southwest, i know eric really well, i've
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interrupted her a million times and i know the dynamics of the conversation can be like that. in a broader context, i'm sure they've interrupted each other and fought a lot over the years. i wonder if this was any different. >> and, of course, the person who raised the issue was a google employee in the audience who asked that question. i think it speaks to not just having the visibility at the lower levels of the company but the most senior levels. i think it's wonderful to have a women at the highest ranks of the united states. cheryl sandberg melissa meyer these are people who rose up the ladder at google. google becomes inunnecessary criticized around these issues because they're a lightning rod. >> thanks so much for having me. "bloomberg west" will be right back.
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cory: i'm cory johnson. this is show show. silicon silicon valley may also hold the future of medicine in its hands. secretary of health and human services sylvia burwell joined us yesterday to talk about president obama's precision medicine initiatives. what is precision medicine and the program will cost $215 million if the budget is approved? check this out. >> the money will go for a number of different things for making sure we can have medicine that is to the individual, treating to the individual. the first thing it will do is create a million-person cohort or group of people that can be researched so that we can understand the genetics and so you have a base of people to understand different things for different types of diseases. that's a big portion of the money. the second thing the money will go for is to work on issues in
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cancer specifically. and we've been able to see that here today both in terms of the research going on and being a patient whose life was saved. cory: one of the main aspects of the program is to build a cohort, a database of medical information that includes genome consequences and the chemical makeup of 1 million anonymized volunteers. how do you keep the data safe from hackers? >> privacy and security will be very important. we're getting input from ethicists, from consumers as we design the database. at the front end the people designing the database will be those that will be engaged and involved in using that database to make sure we have appropriate protections and that they know and think about, how will i want to engage in terms of giving that information? but then making sure the information can be used because the cohort will come from different places, probably different research institutions will contribute to the million. so we'll have to be able to have the information move between in a standardized way.
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cory: that was sylvia burwell, the secretary of health and human services. the precision medicine plan is in the budget proposed for 2016. congress will vote on the budget later this year. coming up, you may have thought it was ridiculous like i did, but amazon and drones coming soon, maybe? we'll talk about that next.
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cory: you're watching "bloomberg west," where we focus on innovation, technology and the future of business. i'm cory johnson. let's check on some bloomberg top headlines. what is house speaker john boehner doing on this congressional recess next week? he's going to israel. the trip comes on the heels of israeli prime minister benjamin netanyahu's reelection. four weeks after netanyahu spoke to congress on boehner's invitation. the house speaker last visited israel in 2008. ukraine's fragile 6-week ceasefire could be in jeopardy.
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pro-russian rebels saying they're preparing another offensive to defend their territory. at the eu summit, eu leaders vowed to keep sanctions against russia, at least for the rest of the year, due to its involvement in the ukraine conflict. the tie-up between switzerland and france is back on again concerning plans to create the world's largest cement company. there is still tension between the two sides over management. no ceo has been named. a change at the top of taiwan's htc. the chairwoman will take over the ceo role from peter chao, three years after the sales have been in steady decline. he she called herself the best can't candidate. htc's smartphone market share collapsed from double digits to
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just 2%. mobile is riding high with a kim kardashian game. a new game starring her half-sisters. here's the ceo nicolo. >> we announced the first ever competition yesterday to get a chance to meet kim. if you're lucky enough and successful enough in the next ten days playing her game. >> they extended their contract with kim kardashian last year. it's also working on a game with katy perry. >> the faederal aviation administration has given amazon its first win to begin drone deliveries. it granted the company an statemental airworthyness certificate to begin testing drones outdoors. after amazon threatened to take the flights to another company
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if they weren't approved with strings attached. joining us now to discuss the impact of this decision is steve burns. the ceo of a company called amp electric vehicles working on his own drone delivery program. steve, i'm surprised by this. i thought this was more than anything else, a publicity stunt. but amazon is pushing ahead here. steve: economics are really driving it. if you think about what it takes to drive a 20,000 pound delivery truck up a street to delivery maybe a five pound package, let's say a dollar a mile cost, all in, and you know, a drone can do it for about $0.02 a mile with the electricity. in the end, the economics, and it really reduces pollution. so obviously, a lot less harmful to the environment. so those two factors are driving it. faa seems to be -- they have to balance public safety with innovation and it's something -- if something helps both the
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environment and economically, i think they're going to look favorably upon it. cory: what's it like with the faa on this issue? i'm surprised with the few conversations i've had with people there they're actually really into this idea of drones and want to find a way to get it happening quickly. steve: yeah, we've met with them. they are surprisingly positive towards it. drone delivery is a lot more complicated technically than, let's say, photography from a drone. in the end, a drone has to come down into peopleville to deliver a product, and that just requires a whole level of mechanics and software and sensors and sophistication, much above what a typical photography drone will do. but, again, the economics, they seem to be bent on things that will save lives, like i know they're big on -- if inspection of power lines can cut down the number of deaths in helicopters doing it, if a drone can do it
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and have less effect of human on human life, they seem really anxious to do those type of things. cory: let's look back at amazon's goal for delivery drones. but what is amazon really after for their business? specifically, they're not expect expecting power lines or whatever. when you look at their goals, what do you see? steve: just from what we know of it, public information, obviously shipping is a big part of their business, shipping cost. they're trying to do two things, reduce shipping cost and bring more casinoonvenience to their customers. they can get it there faster. next day isn't fast enough. same day isn't fast enough. how about 30 minutes? so it's all a move toward convenience and cost-cutting. cory: it's intriguing stuff, too. are there -- to me when i look at the. amazon plans, i think of my black lab labrador retriever
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at home and think, this thing isn't getting near my house with the dog after it. what are the biggest aspects besides my dog to making this business work? steve: two things happen there. a, you've got a person there, the driver is nearby. it's probably a mile or two hop versus maybe much further from a centralized warehouse. what we do is -- it will fly autonomously via gps above the site, but we'll have pilots in a call center to use the cameras on the drone and bring it down safely to make sure nobody and near it. and in addition, software where if anyone gets near it, it will back it up. technology is there. but combine it with a human operator and you've really got the best of all worlds.
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cory: in terms of cost, where does amazon have to come in to make this work for them? steve: i only know what's publicly available, but obviously, shipping costs are a big part of it. if you can reduce those dramatically, it just -- logistics-wise and cost-wise it seems like it's advantageous to use a drone. we know that, again, even a drone mounted to a delivery truck brings down the cost per package dramatically. so it's -- in the end, it's so cost-effective that it will win the day. cory: interesting stuff. steve burns, ceo of amp electric vehicles. thank you very much, we appreciate it. "bloomberg west" will be right back.
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this one. "market makers", weekdays, 10:00 a.m. eastern. cory: welcome back to "bloomberg west." i'm cory johnson. coming up, educator using the apple iphone to teach visually impaired opportunities how to explore the world around them. and sony's playstation four goes on sale there, but with certain drawbacks. time now for the bloomberg top headlines. a strong u.s. dollar hitting tiffany hard. not only is it losing tourism, but reducing spending. profit will fall due to those issues. in the fourth quarter, profits down in all markets except asia pufk pacific. its fourth batter profit was up 298% from last year's loss. phillips has reached a deal to sell its lighting units.
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private equity firms agreed to by 80% of the unit. phillips and rival siemens have been looking to exit the bulb business to enter more lucrative medical tech markets. and google created a tablet to help doctors fighting ebola. replaces shouting pulse and temperature through the walls of high-risk contaminated areas. this tablet has a thick, waterproof case so it can be dumped into a chlorine solution strong enough to kill ebola that would cause chemical burns if it touched the skin. it's charged wirelessly by being placed on a table. smartphones helping the blind and visually impaired people see? yes. you may not know it, but your iphone has several features to assist the blind and vulgsy visually impaired. let's discuss how the smartphone technology has improved the lives of people who are visually impaired. ed summers, software specialist
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institute. this is really fascinating stuff. what capabilities are written into the phone as it comes shipped out of the box? ed:that's one of the great things about the ios devices, including the phone. it has a settle of accessibility features, that improve access for people with disabilities or people who are getting older and may need a little larger text on the screen. one of the features that i use day in and day out that enables me to use the phone in so many contexts, it's called voice over. voice over is a screen reader that announces the text that is on the screen underneath my finger as i drag my finger around the screen on the phone. cory: fascinating stuff. in terms of app development, how do you sort of get people to develop more apps on this? how big it the market? what do you do to try to encourage businesses to write to the visually impaired? ed: good question. the world health organization did a study a few years ago and
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there are approximately 1 billion people in the world with disabilities. that's about one in seven of the humans on earth. and about 285 million of those people have visual impairments. so we as a society, we're getting so much better about providing ways for everyone to make a contribution and to -- to the economy and also to government and everything. so the development kit that apple offers provides lots of features that allow developers to get a lot of accessibility for free, and then they can also exploit some of the really interesting capabilities of the device like the gps feature. cory: tell me your personally story. how did you become visually impaired or blind and what led to you becoming an victory in advocate in the disease the space? >> i've had a disease since i was about 12 years old and gradually lost prison. about 30 years old, i had a very
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small view. and today, i have just a few degrees of view and 20/400 vision. at the same time, i'm a computer scientist and have kind of a knack for technology and there's been just a really great opportunity for me to make a contribution in this space and also training people to increase the adoption of technology. cory: very interesting. there's one app i've heard about called blind square, third party app. ed: it's a play off of four square, a crowd sourced way of checking in and rating restaurants. the four square, i think there's 40 or 50 million data points that are available that include gps information and information about restaurants. and blind square was developed to tap into that data as well as maps data from, say, open street maps gps data. it uses the gps capabilities of
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the device, of the global positioning system satellites that allow the device to know where it is on the face of the earth. and the app itself allows people with visual impairments, along with the accessibility features built into the iphone, to access all these great capabilities, find restaurants nearby, plan a route to a restaurant or a museum or a place of business. you name it. i can pretty much access any of the gps information on my phone that you can access on your phone using this accessible app. cory: fascinating. lastly, what is the one thing you wish apple would add to its features that would really help things for the visually impaired? ed: so i think the one thing we're looking at right now that's so exciting is something called ibeacon that apple just recently added and it's just on the verge of going viral with the deployments of ibeacons. what the beacons are doing is they open up this dead space for people with visual impairments.
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we use blind square on the phone. when we walk inside of a building, the gps signal is lost. but these little beacons allow you -- you can float them around the building and they serve as -- kind of like gps for indoors. and blind square is just now talking into ibeacon's technology, and it shows a lot of promise for helping people with visual impairments getting around buildings. cory: navigating indoors. fascinating stuff. ed summers, senior management at the software specialist institute. we appreciate your time. "bloomberg west" will be right back.
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drive has an interesting role here, and edward snowden's use of a thumb drive to steal nsa documents has many questioning the security of those devices. what if you had a usb that destroys itself when it falls into the wrong hands? iron key has a tamper proof device. it's a fascinating thing. if someone enters the wrong password too many times, the device self-destructs. iron key's general manager barbara nelson joins us. i've had an iron key i've had for a long time. i don't use it anymore. i better call this company and find out what's going on, which is the origin of you being here. talk to me in this era of dropbox and azure from microsoft and google, they say the most secure thing is put stuff on the cloud. is it? barbara: it's a combination. nobody puts everything on the cloud. this is you your your key to the cloud. you want files to keep with you and also in the cloud.
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you'll also want applications to use on the windows to go stick and you'll also want things in the cloud. i think you need to have a combination. what iron key does is it's a secure endpoint. this is completely secure. cory: these devices are interesting. they're metallic. they feel like something out of the nsa. there's a famous cybercrime study where some hackers sort of testing a security system sprinkled usb drives around the pentagon or fort meade or the nsa and people picked them up and plugged them into their computers. barbara: in this case here it would phone home and it would immediately know it was a lost device because you've told it, or a stolen device, and it would do one of three things. prevent you from using the device, it would wipe the twice clean, or as you said earlier, mission impossible style it would blow it up. cory: these things don't actually blow up? barbara: the fuses blow. absolutely.
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and in fact, if you try to tamper with it, there's actually a wire mesh with a crypto chip and it will explode. cory: is it like collateral damage, "mission impossible" style? barbara: no, it's not that bad. cory: fascinating. talk to me about what's going on at large in the usb business. you can can't e-mail certain files. there are things like dropbox that didn't exist a couple years ago. barbara: let me talk about windows to go, a microsoft product we offer. this is windows, applications, vpn clients, the whole shooting match. what it allows you to do is let's take the cloud azure, office 365, that environment. everything would be on the stick. cory: including the operating system? barbara: including the prating operating system. you plug it in your pc, mac, anywhere.
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you have your operating system, your environment, and the corporation's environment, even more important. the corporation will secure the cloud. they have ways that they have a whole security architecture around that and so you're protected not only in terms of that but also in terms of what's on the stick. cory: are these things durable enough? you just dropped your usb drive in my tea. barbara: i can use that afterwards. cory: this is still going to work like that? barbara: it is. and this is my laptop. cory: i don't want to drink my tea now. it didn't self-destruct. how big is this market? is the usb market contracting because of the storage available in the cloud? barbara: because of the threats last year with bad usb and a group finding all the stuff the government supposedly did. if doesn't matter if it's the government or bad guys. we've seen an increase in sales, 27%, to be exact, in the last year on just storage.
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the bigger market is the workspace. so the workspace market is where you actually hand the drive to somebody instead of handing them a computer. so a company will give you a stick and say, use whatever device you want byod. cory: that's fascinating. barbara nelson, thank you for joining us. the manager of the company called iron key. we focus on one number that tells us a whole lot. remy joins us from new york. what do you get? >> today's b-west bite is six, the number of game titles allowed on sony's playstation four in china. a very sad number considering that just right next dearoor over in japan, they're allowing 200 titles. cory: whooundat kind of titles are these? in the market for the first time, good on them, but with a very limited number of titles. or type of title, i should say.
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>> some of the titles they're allowing are china-themed games. sports games. and one of them is a puzzle game i can't quite figure out. dynasty warriors eight, knack, a first person beat 'em up. ray rayman legends, sort of like super mario brothers. and something about pumpkins and vegetables. some of the titles not available are ones you might expect, grand theft auto five, as well as call of duty, advanced warfare. cory: i wonder if it will be limited because they're not giving the people the games they want, first-person shooters and so on. >> and they're not used to buying them for 50, 60 bucks. they're used to getting them free online. it will call into question whether sony can make a profit
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