emily: salesforce kicks off to dream force with a big data and at -- some unconventional partnerships that have some new investors talking. ♪ emily: i'm emily chang, this is "bloomberg west". coming up, then a venture capitalist sounds the alarm on a tech bubble. plus, snapchat discovered a new revenue stream. and nasa's plan to send humans to mars. salesforce's annual dream force

conference kicks off today just a few blocks from here in san francisco. they open up the summit by introducing a new cloud for the internet of things. this is a way for customers to make sense of all the data coming in from different kinds of devices. which they can buy as a service. joining me now to discuss all things dream force, executive vice president at microsoft. he was -- she was one of the first hires from the new ceo, and and from new york, our senior analyst for bloomberg intelligence. what do you think of this cloud? >> it is a big deal for any company right now. predictive analytics is becoming the way you want to differentiate your offering. so almost every software , company is getting into it. emily: talk to me about why is -- why microsoft is at dream force this year. he will be giving a big presentation and doing a big

interview there, why? peggy: this is our second year at dream force and we are in an innovation sponsor. we are here he comes of our great partners. he's giving the keynote on wednesday. he will be talking about our three ambitions. reinventing productivity and business processes, creating a more personal experience and building an intelligent cloud. emily: talk to me about that relationship. on one part your partners, and there is another part where microsoft is becoming more competitive. peggy: we have areas of competition, but we've many more areas of synergy. that is what we are choosing to focus on with their sales force partnership. since the past year when we first announced a partnership, we have expanded in a number of areas. we have a salesforce app for outlook. we have had deeper integration between our one drive in short

-- and short products. we have new integration with salesforce and our business intelligence solutions. emily: how would you say this increasing partnership is working out for customers? >> they opened it to the compartment. almost every technology company ever since the current ceo took over has been something that has been noticed. they've done a very good job about it. especially with salesforce, it really helps them to expand their applications. emily: we talked about salesforce and microsoft as partners. the chatter has gotten so intense that people claim that microsoft tried to buy salesforce. would it ever go down that path? peggy: i would just say that we are great partners. it has come a long way. part of that is satya nadella's focus on partnership. he sees the value of driving a partnership with good

collaboration and innovation on both sides. that is where we are focusing. emily: you were his very first hire. you worked at qualcomm for 24 years. what attracted you to them? peggy: it was a big change for me. frankly, i was very happy at qualcomm. it was a great company. i had watched his progression and i was curious about his vision. he seemed so different. out of the blue, when i got a call to come and look at the role as the head of business development and got to meet him in person, and he is such a change agent, i was all in. i picked up and moved to seattle. emily: i want you to hang on for a second because we are getting some breaking news headlines out of hp. saying it will be cutting 25,000 to 30,000 jobs as a part of a restructuring. i recently spoke with meg whitman, and she did say that

more job cuts would be coming. we're trying to figure out exactly where they are coming from. you cover hp, it has always -- already been through a lot of pain with meg whitman coming in and trying to turn this around. the split that is coming what do , you make of these additional cuts? >> we have to see where the job cuts are, but something you can see is that they are not competitive in services at this point. offshore companies are regaining market share. they are struggling, hp is struggling. we will have to see where these job cuts are coming, but i'm not given their weak performance in the services business. emily: these comments coming from the hewlett-packard enterprise cfo, speaking at a conference. where do you see the fat when it comes to hp enterprise? where do you see the room to

trim? >> one of the most important things a lot of service companies have done is moved their staff to offshore locations like india and the philippines. hp has not been as aggressive as some of the other companies at this point. when they have to compete with other companies hp has been , behind. so, it is possible that this could be an aggressive move to cut down cost and be more competitive out there. emily: how optimistic are you? g,viously, when i spoke to me she said, whenever jobs, these are hard choices. but it certainly seems that she has been able to make these hard choices, not the least of which was splitting up the company. how optimistic are you about the future of hp enterprise with meg whitman at the helm? >> a lot with depend on how they position this company in the future. how do they pivot it?

if they have the idea of outsourcing business, they're going to have a tough time. but if they do cloud analytics, and the air as we have been discussing before that then they , have a shot at getting back to growth. emily: our senior analyst at bloomberg intelligence, thank you so much. i want to bring the president of -- the executive vice president of microsoft back in. we were talking about partnerships and working with such in the download. and talking about hp, there are a lot of changes going along and the tech industry. what makes you so hopeful about his decision and vision at microsoft and for partnerships? peggy: we have always had an active partner network and -- at microsoft. for many years we have worked with the manufacturers. but we have not always partnered well, and innovated alongside them. i think that is the change we see. he recognizes the importance of working with partners.

and so i think you will continue , to see surprising relationships in the year ahead. emily: you have been able to strike partnerships with uber, dropbox and aol. what does it take to get those kind of deals done? peggy: we have a culture at microsoft where we are customer obsessed. we want to make sure we are good learners and listeners. we take that very seriously. we took that into those partnerships that you recognize. for instance, with uber, we have put together a great partnership with them where we are getting ready to announce a deep integration. if you have an appointment in your calendar it could pop up and fill in the destination into their field already. very seamless, a great customer experience. emily: thank you. we're looking forward to hearing him speak.

coming up, bill gurley tells me what the slow down and china china means for investing here in silicon valley. ♪

emily: breaking news. hp cutting 25,000 to 30,000 jobs as part of restructuring. these comments from the cfo. that is a lot of jobs. we'll be learning about where these are coming from. cory: there's a lot of jobs on top of the other 50,000 they are already laid off. it is important to understand

the context. for more than 15 years they have been taking one-time restructuring charges and the extent of those charges past the business already is really bad news. not the least of which are the -- for the additional 25,000 to 30,000 people that are going to lose their jobs. these were layoffs that were supposed to happen when they came in. now another 25,000 to 50,000 on top of that is an enormous number of jobs to be cutting. emily: what are you saying? do you think that these could happened sooner or should have happened sooner? cory: the way they account is very important for people to understand. hewlett-packard likes to take it as an extraordinarily one-time thing. they say here are result, ignore the restructuring happening over here. in fact, they have been happening together all the time for more than a decade. so that hp losses might look better if you accept their non-gap discussion work, earnings or losses.

but, in fact, the restructuring charges, because they are consistent item with this company, they might make the results look at little bit better on the operating profit line, but it might suggest that the company going forward is expected to have a lot of problems. emily: i'm curious to hear what your take is. how optimistic are you at about hp? cory: when you have a business with a bad reputation and a manager with a good reputation. it is the reputation of the business that survives. with her reputation -- as a politician and leader of ebay, she is in one of the toughest places in all of business and technology. hewlett-packard is performing a lot worse. oracle competing head-to-head. cisco competing head-to-head. they have done ok in this timeframe. cisco has been ok in this

timeframe. you see losses for hewitt packard on the revenue line. what meg has maintained all along as we are doing a lot of acquisitions are going to spend a lot of money to grow our top line. they have not been able to do that yet. theirat we see is prediction for the future of the business when it is to businesses is also going to be bad and require continued restructuring. emily: turning now to china. stocks drop for a second day. the biggest two-day loss in three weeks. i spoke with bill gurley earlier today during a panel discussion, and asked him about volatility overseas and how worried he is about it. >> there seems to be enough evidence now that there is some type of slowdown there. both from an export an internal

-- and internal consumption standpoint. the only reason it is interesting in my mind is because some of the same investors that have been playing in the late-stage market their -- here are fairly active there. part of what happens with investors is they can very quickly go from being overly optimistic to overly skeptical. they are either super optimistic or super pessimistic. and it can cause these huge shifts. because, a half-full guy asks very different questions that i -- than a half-empty person. there is some risk that skepticism could go into the late stage investor market. because it has become one global market. it is the same people doing it everywhere.

if they get their butts kicked over there they will not stay hyper optimistic here. it is just human behavior that is hard to continue to act that way. emily: how is this affecting your strategy? >> our firm has taken a more conservative attitude in the past couple of years. you can see a decay in the quality of the opportunities that entrepreneurs are chasing. less differentiation. i would offer one caveat to that which is if you look back over, -- if you look back over history the really great outcomes the , day they start seems completely independent of whether they were in the cycle or not. emily: we may be at an inflection point. how far away is bottom? how many survive? >> we have moved from everything

is rosy to where we start to see cracks. historically, that has led to a change. i am of the belief that there is an 80% chance we are headed toward the kind of thing. i cannot prove that. the unicorn question is interesting because there are two dimensions likely cause that. one, just a normal correction could have some amount of impact on a percentage of those companies. there is another thing though, there is this meme going around about staying private longer. and it is interesting, they , publish this thing where they studied 3000 companies that had gone public. of those 3000, only 900 made it to $100 million in revenue. that means that two thirds of that went public on less than that. they never made it to the desired revenue. so, if we are going to stay private longer, the number of

companies that actually make it out is going to be exponentially lower. emily: now to a story we are watching twitter partnering with , square, giving u.s. political candidates a way to collect donations tweets. they may find it easier to cooperate on the initiative as they currently share the same ceo jack dorsey. allows you to select a donation amount and submit information required by the sec. -- fcc. square charges 1.9% transaction fee. twitter does not take a cut of the donations, but campaigns can pay to promotes tweets to specific users. now, another company we are watching, snapchat. finding another revenue source for $.99 you will now be able to , replay three snaps that have disappeared. this is according to snapchat's

blog. there is a catch. you can only replay a single snap once. around $19lued at billion. up next, what chicagoans are doing to fight back against the city's so-called netflix tax. ♪

♪ emily: it is time for the daily bite. one number that tells a whole lot. today's number is nine. 9%, chicago's infamous cloud tax charging residents on streamed videos and music. but, some chicago residents have had enough. a group of chicagoans are suing the city on the so-called that netflix tax. they are saying it violates a statute.

which for bids states and cities from proposing discriminatory internet-only taxes. the city says it will fight the lawsuit. that tax reportedly brings in $12 million a year. another story we are watching today, jeff bezos unveiled plans for his space start up, blue origin, to build a rocket manufacturing plant. the launch site will be in florida near the kennedy space center. the company is spending more than $200 million on the project. eventually blue origin will be competing against the joint venture of lockheed martin and boeing and spacex for commercial rocket launches. staying in space today, astronaut scott kelly is officially halfway through his one-year mission on the space station. it is a record-setting project that will help nasa understand long-term effects of space on the human body. something we need to know before we can send humans to mars. joining me now for a status update on the mission, dr. julie robinson.

she's with me from houston. thank you for being here. how is it going six months in? how is he doing? >> it is a great mission going so far. scott is doing great. he recognizes that this mid-point from here is where the different psychological issues and challenges of the locked up in a can for a year are going to take place. emily: you are also studying his twin, mark, on earth. what are the surprising things that you are learning about the both of them? things, if you think about what it is like when you visit your doctor, it has changed dramatically in the last five to 10 years.

we have personalized cancer treatment. we have to understand what it is about certain astronauts that helps them to be healthier with in space than some of their colleagues. that is really important to know over the long term so that we can send a crew that will be safe and be able to complete a mission like a mission to mars. scott and mark are the first astronauts to step forward and say study us while we are in orbit. study us back on the ground. they are identical twins, some -- so that is some really powerful genetic data. that opens up a set of studies that were not possible before. emily: what specifically have you learned that will enable you to send someone to mars? what has given you more more information that would give the mars mission a success. >> one thing that is really important is we are evaluating

how to keep scott from losing while he is in space. what we have discovered over the last three or four years on the space station is that some astronauts lose some of their vision while they are in space, but some do not. some astronauts, when they come home, in a few individuals it is severe. we have a hypothesis about how that is happening. it has to do with the fact that when you're in gravity, all of the blood flows into your legs. then your heart has to pump it , back up. when you're in space, all of that blood flows into your head. in fact, the astronauts we know have eager, rounder, happier basis. we think that is putting pressure on the brain and on the optic nerves. it compresses the eyeball, and can damage vision. so to study that on the space station, both scott and his cosmonaut counterpart are doing a series of eye exam and we are putting them in a russian device

which is a lower body pressure device. it is essentially a pair of pants that draws the fluid out of the top of their body and down into the bottom of their body and we're able to use our ultrasound to look at the movement of those fluids. that will help us to design the right set of medical treatments to use her crew members that are going to be a no gravity environment are long time. that way their vision will be protected. emily: that is fascinating. talk about a sacrifice for the greater good. we will continue to track scott's progress. thank you, julie robinson are joining us today from houston. that does it for this edition of "bloomberg west." tomorrow, do not miss my interview with cisco's ceo. we will be a dream force all week long. i will be speaking with mark benioff. ♪

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