♪ emily: i am emily chang. bloomberge best of technology where we bring you the best of the week's interviews contact. we will break down the game plan for uber after the new boss meets the troops for the first time should plus, apple goes all in on the touchscreen. the home button becomes a thing of the past as the date is set for the next big iphone event.

he is one of the most recognizable names in the tech industry. an exclusive you interview with michael dell. first, one particular startup could be going public sooner than we think. the new boss at uber met his new employees and he outlined some of his top priorities at the job including coming up with a new set of core principles and bringing in a new chairman to help implement the agenda. in his own words, "the company has to change. what got us here is not going to take us to the next level." in the meantime, travis kalanick has already expressed interest in returning to a more active role in the company which could create a potentially awkward

dynamic that the new boss will have to manage. at them -- in the meantime, it was all smiles at the new board meeting. we spoke with our bloomberg tech reporter, eric newcomer, and our global head of technology to find out what else happened at that meeting. >> they were sort of cutting jokes and celebrating travis' role at the company. saying that what got them to this point is not what is going to get them ahead, and then there is the conversation about the ipo. i do not know. 18 months seems a far enough time away for me. a guy who has run a public company for a long time, so he understands the importance of going public at some point. emily: what do you make of the show of camaraderie? >> i think it is more than just what was said that also how it

was said. this is a showing of unity. tears was there shedding and making introductions. other board members were there. perhaps everyone on that very contentious board, but it was in message sent to employees, drivers, and the media, and their customers, that they are trying to say that these dark days are over. the want to hit the reset button and get out of these headlines a little bit while repairing damage to the brand. emily: travis says he wants a more active role, and he is clearly very emotional about how everything has been handled. >> for now, the board has approved an independent chairperson, so they would have to reverse themselves. emily: what role could travis take on? >> i think advisor could be the role for now.

it is not clear if it is going to be anything more than that. >> remember, this is all tied up in litigation. there is a lawsuit fired against travis which requires arbitration. he thought he wanted this to be resolved, but his status is very much still in question. pending the outcome of that, i think we will see what type of influence he retains on the board. that: let's talk about lawsuit moving into private arbitration. investorarly uber released a letter today. there with me, i just want to read a little bit of it. he is coming in on the side of travis saying, "we are swimming in the crucible of one of the biggest business battles of our generation. the lives of millions of jobs created to iniquitous taxing

cartels." i am glad i got all of that out. what is going on here? vin -- he is aer big friend of travis, and he has a lot of passion. you trying to communicate in his own way that travis has done a lot of good with uber which he sees as a public utility which broke up the taxicab coalitions. so i think he is trying to frame it in an overdramatic way. only thatblem is not the writing is overinflated, but it comes at a poor time. emily: what is the strategy here? >> i think he's trying to muster public support for what he sees

as still a divided board, but he does not make the argument all that persuasively. think of that 18 month to 36 month time frame for an ipo? >> it is near enough to say that it is possible, but who knows? it is so far away that it is hard for people to get their heads around and may be considered too seriously. so, i think it is kind of a nothing statement which sounds sort of serious. >> this is a business which is growing very quickly b is also losing quite an amount money per quarter. he has to make decisions about where he wants to grow and where he wants to pull back with sort of these and ciliary businesses. ciliary --se and anciliary businesses. i think this is kind of a heisman stiff arm will out what

is going on. while he figures out what is going on. emily: coming up, mark over sean will speak with us about his plans to lead the travel company. we will also bring you our exclusive interview with michael dell and his thoughts on the cloud. this is bloomberg. ♪

♪ emily: google agreed to change the way it operates its shopping structure. the tech giant faced a deadline on tuesday to propose a plan on how they would stop discriminating against rival shopping services.

if google did not submit a plan to the eu by the deadline, they would have faced daily fines on top of their 2.7 billion dollars penalty. coupleis hiring another thousand employees as it fights for market share on the cloud. the battle has been going back-and-forth between oracle

+++ tech -- to one of the tech industries against events -- biggest events. i caught up with michael dell at the event. take a listen to what he was excited to see. >> we are seeing the emergence of this multi-cloud world. customers are figuring out that the cloud is not really a place, it is a way of doing i.t. they are modifying their existing infrastructure, and they are leveraging the public cloud and other software services. all the innovation that is being created to enable back new, connected future. emily: you think hybrid cloud is the way the future? >> i think customers are adopting i.t. in a hybrid fashion. many of the customers we have talked to are already using many different modes of i.t. when you imagine the weight to thefuture -- the way to future, the enormous number of connected devices, you will need a distributing computing world which is far more vast than what we have today. emily: talk to me about some of the partnerships.

you partnered with amazon about a year ago. you also partnered with google. what about -- what can you tell us about your decision to partner with maybe your enemies? >> the goal was to partner with the number one private and public clouds. that way, we could leverage their technology capability on a public cloud environment. with google, we are bringing together pivotal and many developer friendly capabilities of the fortune 500 with a group created -- with a google created cloud operating system put forth into the open community. with that, we are bringing all the employees together in a

secure manner with nsx. that is creating a developer friendly infrastructure which allows companies to develop these next-generation apps, put them in containers, and then deploy them on premise or on the public cloud. that is what customers are asking us to do. emily: do you have any concern that these public cloud owners could steal your palm -- private cloud business? >> when new things happen in the industry, if they are good for customers, if you stand in the way of those, you do so at your own peril. re firste when v.m wa came out as a private company, dell was a -- the first service vendor to embrace v.m. ware. we ended up selling a whole lot more servers and we ever

imagined, and now we are number one in the world in servers. we are growing in double digits, and our business is doing very well. when customers want different modes of i.t., when they want the public cloud in addition to the private cloud, it is important for us to listen and bring those capabilities to our customers. emily: when it comes to the amazon or google deal, how can dell more privately ease the deal? >> they are both part of dell technologies, and combining all across thes force company, we can bring those capabilities to our customers. one of the things we see in the combination is the idea that customers do not actually want to have more partners. they want fewer partners. by being number one at everything all in one place to revenueomers, we see

synergy is greater than we thought and it is coming faster than we thought. it is because we brought this broad group together. v.m. ware goll and together like peanut butter and chocolate. emily: that was our exclusive interview with ceo michael dell. amazon spent its first day as the owner of whole foods and cut prices as much as 43%. withown items where marked orange signs. it is a sign of how the retailer is changing, the amazon echo was also on sale at retail locations. we spoke about this change with analysts. >> lots of price cuts. we can see them on an innocent and -- we can see them on

bananas and lean beef. the avocado was down about one dollar. organic rotisserie chicken was down about five dollars, so that is a huge price cut. emily: was a crowded? >> it was very crowded. i know people who held off on their shopping until today to get this specific shape -- sav ings. inly: with the amazon echo the stores, do you think people will buy these products while they are grocery shopping? >> the echo? possibly. i think it is the first successful entry into the living room that we are now seeing trying to be copied by apple and google. when you think about the whole whole foods transaction for justn, i think this is another point to underscore the

impact we are seeing from amazon all across retail. if you increase the touch points for the customer, i think the opportunities are not just limited to groceries, but you can think it a picture into restaurants and repaired foods all the way down the supply chains. i think you can see those affects. within the grocery business itself, how do you see grocery competitors responding whether it is costco or walmart or kroger? >> i do not think you can. the problem is that the business models are so different. what amazon has the opportunity to do is to operate at a target 0% margin. they are able to do that, because of the fact that the business is subsidized through the cash flow proceeds from awf. grocery thatther has that luxury.

that is why you are seeing a deflationary impact from amazon. if you look longer-term, grocery stepmanager -- is a master towards capturing a greater part of the broader economy. emily: coming up, another bloomberg scoop on the new iphone. we will tell you what tricks tim cook may have up his sleeve when he gets on stage later this month. this is bloomberg. ♪

♪ emily: one of the world's largest drone manufacturers is making a big security push. major money to anyone who finds flaws in their software. the identification reward program comes after the army ordered its personnel to stop using drones made by the company to do a security hole. the company said that it was to

deliver private data and logs. apple has a date set for the unveiling of its first significant product in years. last week, we were able to unveil some of the new features of the new iphone. this week, we have another scope -- scoop. apple is trying to eliminate the home button on its device. the move would mark the biggest interface change in the iphone's 10 year history. mark gurman brought us this scoo p. >> i think iphone users are going to be very excited about this new phone. they have been working on this for some sometime -- time. the biggest change is that getting rid of the home button. it is going to be an entirely new ui system.

noty: so the home button is completely going away yet? >> know, there are going to be three new phones. two of them are going to have the more conventional design of the other, older phones with the physical home buttons, so the bigger changes are happening with the premium models. emily: what other changes are we seeing? this green is tolerant. >> yes, the new iphone is going to be significantly taller. you will be able to fit in more apps fromrsations and the app store. emily: oculus about what is going on with toshiba and their -- talk to us about what is going on with toshiba and their chip. >> for iphones and ipads, they are working on getting more storage.

it is an absolutely critical component for the iphone just as the screen or cell reception. so, they want to get as many of those, and toshiba does great work on their chips. emily: what about apple performance and supply chain issues? >> it, but he means very little when it comes to performance. it will give them more leverage however. emily: do we know when we could see more about this new phone? >> in september is what we have heard will be the plan to announce more details. emily: that was mark gurman. pushed tim helped cook's compensation to new high. to total compensation surged $150 million last year compared

to 72.9 million in 2016. >> when he came into the ceo role, apple said they were going to give him a massive chunk of stock which you would get over to implements over 10 years. a couple of years later, it was restructured and split up over the years. can collect about 280,000 shares as long as he remains on the job, and another up to 280,000 shares if apple's share price beat two thirds of the companies on the s&p 500 index, and they have done so in the past five years so he collected all of those shares. goi am looking at the pay function on the bloomberg. you can really see how he is

highflying at number two right now at the moment. cookto us about where tim stacks up versus the rest of the tech ecosystem with this new compensation being handed out. >> in the bigger scheme of things, it is almost absurd. figure does not hit the ceiling when it comes to payouts in the tech sector. seen several examples. google for example. even though tim cook gets quite a bit of money, it still does not tend to be at the very top compared to some of those other guys. --ly: >> talk to us about whether or not this will be sustained. will we see tim cook's

compensation staying tied to the share price performance? should it be tied to another article measurement such as revenue? >> that is a frequent debate among consultants and people in the boardroom. is share price really the best measure of corporate performance? some people say that perhaps you should focus on other internal financial measures such as revenue or product developed which will drive share price and terms of share price being the -- drive share price. with share price being the ultimate goal. it has been successful for both shareholders and for tim cook himself, so i would not say that i will expect any changes in the near term. who knows?

>> how does that sit with those who work at apple and the general public? in london right now, there is so much happening with government pressure and public outcry when you see ceo's getting paid significantly more than the --rage employee in person employee and person on the street. how is it different with america? >> making a lot of money is not necessarily seen as a bad thing in the united states of america, we know that. tim cook did get a bit of pushback about his opposition when he first signed on and got this large first reward. so, it was actually at tim cook's request that it be tied it to the company share price performance and that if they do not beat two thirds of the s&p 500, then he does not get more of those shares. going --ming up, it

bitcoin prices have been hovering at record levels once again. we will take a look at the crypto craze, coming up. remember, you can watch episodes of uber technology streamed online. this is bloomberg. ♪

♪ emily: welcome back to "best of bloomberg technology." i'm emily chang. cryptocurrencies have been searching this year, causing the interest in digital assets despite. bloomberg technology took an in-depth look at the rise of virtual currencies. we began by looking at what make the market so volatile. caroline hyde reports. caroline: cryptocurrencies are in the midst of a record-setting run. names like bitcoin and ethereum has seen value skyrocket. bitcoin, close to a household name as you can get in cryptocurrencies, has jumped up

over 350% this year. it jumped from just over $1000 at the start of the year to over $4500 recently. ethereum, the number two, is on the move as well. >> companies across all industries are looking at how to use this technology. caroline: it has not been smooth sailing. look at a recent 30 day snapshot of bitcoin and you can see roller coaster ride. back in august of last year, bitcoin plummeted 13% after a hacker stole $65 million. this year the theory am also fell on tough times. >> this technology is still pretty new. that causes there to be bumps on the way. plentye: there are still of promising opportunities. there is a growing mainstream acceptance of the asset class. big investors like mark cuban are already throwing their weight behind cryptocurrencies and the block chain technology that underlines them.

institutionsncial are embracing virtual currency. if th fcc approves the rst electronically traded funds, it will make it easier for everyday investors to jump in. it is already soared past the price of gold this year, but we are for your that fo -- four years removed from the bitcoin crash of 2013. and that is the bottom line. emily: caroline joins us now live from london with our guest host for the hour, roger mcnamee. great to have you back on the show. highs and lows. bitcoin. are we in a bubble? roger: i think we probably are. it's important to distinguish between cryptocurrencies and the

block chain technology. to me, the thing about cryptocurrencies is a really are not currencies. they are really commodities like soybeans or pork doilies -- bellies. emily: what does that mean about the value? roger: it is volatile. it was designed to be volatile. currencies need to have stability. if you look at this and you think about it, it is more like trading gold futures or treating oil futures. those are going to be inherently volatile. yes, there is something valuable underneath them, but you would not use gold futures to pay your mortgage or your child's college tuition. emily: does it have long-term value? roger: it is too early to know. structurally these things don't look like they can make the transition to being real currencies, are not sure that matters to the investors. i think the are in it for the

volatility in the return. that may well work out as it has recently for a lot of people. i do think we are not done with the sharp drops. i do think there is enormous structural issues. there are thefts of the various cryptos here, there and everywhere. i think it will continue. the concept of the role of miners and the fact these are things adopted primarily by black and gray markets suggests, it at least confirms my basic notion. these are far, far from a mainstream currency option. emily: he mentioned people getting robbed, the number of complaints about coinbase, the biggest exchange. caroline, we are seeing so much more mainstream acceptance. give us some of the examples of how we are seeing mainstream investors embrace this. caroline: that is what is

fascinating. the likes of fidelity, one of the biggest money managers, they are mining bitcoin themselves and looking to be getting into this as an asset class. was distinction between cryptocurrency and the block chain technology, the shared record keeping underneath it. thank -- banks are embracing block chains. the utility settlement coin. they are building their own coin. it will be available next year. why? to make financial transactions that much easier. clearing, settling. that is what a that's why they want to introduce this technology. i think that is what is so interesting when we saw the split in bitcoin between bitcoin and bitcoin cash. what is bitcoin? does it remain a store of value? does it become a so-called haven? when you see a flight devalue,

when you see concerns about north korea, gold shoots up as does bitcoin. does it become more of a payment mechanism? does it scale? do we start to see improvements in the size of the transactions? this is how much bitcoin is beating gold. let's talk about the flood of investors in the market. you are in for a roller coaster ride by the holder cryptocurrency or gain exposure. check out my bloomberg. i'm going into. .- you can type in 3994 you get a crypto roller coaster. in the white line, bitcoin investment trust. this is where money managers are pouring to buy the don't to buy bitcoin out right. they want exposure. on the bottom half is the receipt of the 90 day volatility of the investment trust. it is more than three times the volatility of bitcoin. whether you want to try to the overall -- you are in for a

rough ride. emily: if you look at the run-up in bitcoin, it is dwarfing the run we saw before the tech bubble, before the housing bubble. is that a concern? roger: only if you are long. if you have taken your profits, you are sitting there going, not a problem at all. when you talk about $170 billion interest in this category, that is why you see banks and others coming in. clearly -- why are we having this segment right now? there is a lot of interest. the trick is, at least for the viewers watching this, to separate the commodity of bitcoins from the notion of a cryptocurrency. a currency needs to have stable value. i just don't think you will get there from this. the third piece, the one i am excited about, is the underlying block chain technology. there are a lot of reasons

people would like to be able to do high-volume financial information transactions at very low cost with privacy and security. blocking technology offers that promise. i think everyone is excited by that. i would like to see a bank or other financial institution try to create currency, try to create a stable store of value that would be -- that would rival the national currency because that is the promise land i think so many people are hoping to go to. emily: there is all this talk they could not just revolutionize financial services, but real estate, giant technology companies. roger: and the sale of information. emily: where do you think the block chain can be the most revolutionary? or is that an exaggeration? roger: it is too early to tell. ist is excitimh about it it is a distributed system where scale -- scalability is not a

problem. with the scale of market you have today, if you can take it off as an issue, you can apply it almost anything. what remains to be seen is which markets will find this the most appealing. in its current state the answer is only experiments. consumers are not yet interacting with this regularly, but a lot of money has been raised. we will run the experiment and see. to me that part is really, really exciting. it makes it worth going for what i think is going to be further issues around the so-called currency part of this discussion. emily: that was roger mcnamee and bloomberg's caroline hyde. ceong up, expedia's new tells us about his plans of the company, including a possible partnership with uber. this is bloomberg. ♪

♪ emily: as we discussed, we saw eopedient -- expedia's c take the top job at uber. they promoted mark okerstrom to the top job. we spoke with him a day after accepting it. i started by asking him for his reaction to the move. mark: these things, you talk

about them for years. it is like a sports analogy. you prepare the team for the big game. you get a call on sunday night as suddenly the game is two weeks from now, it is a fact tomorrow. it unfolded a little bit like that. i think we were all ready for this eventuality. i don't think it unfolded how everyone would have planned, a we are all pretty excited around expedia. we are happy for dara and i'm happy for the people at uber. i think he will do a fantastic job. emily: barry diller said no one else was even considered. i know you and dara have worked together for many years. what is your vision? what are some things you might do differently? mark: as i have said, i have been very involved in the strategic direction for a long time. ina and i have been lockstep all the major strategic decisions, along with our chairman barry diller. we don't have a long list of things i am dying to change.

we have a number of priorities across the company, certainly he coming more international is a key priority. i will be very focused on making sure we continue to expand globally. homeaway is a at big priority. you will see more of the same for us. maybe we can go a little faster. emily: you now have some deep ties to uber's new ceo. what are some ways you can work together? perhaps free uber rides for expedia customers? mark: we have talked a long time about possible ways we could work with uber, integrating their service into the expedia app or the hotels.com app. i'm hopeful in the future those talks might be a little bit easier. emily: dara is walking into an incredibly challenging situation. and ousted founder that still was a role in the company, several lawsuits, difficult for dynamics. we have talked about how you can deal with big personalities.

tell us more about what you think he has what it takes to take on some of these personnel challenges. mark: i think above all dara has one of the highest levels of emotional intelligence i have ever seen. he knows people. he is humble. he listens. makesk above all, dara the people around him better. people want to think like he does. the is a great role model. he is a man of high integrity. the values diversity. devalue's gender balance. he really -- he values gender balance. some things that may be lacking at uber. i have wanted to percent confidence uber will be a better company under his leadership. emily: the information retracted the report that you are going with dara. there was a point that he has a lot of executive positions to fill. are you concerned a number of executives from expedia are going to follow him there?

mark: i think we feel very good about our executive team. i think we have one of the most talented executive teams out there. we have been together for a very long time. they are really excited about the prospects around expedia. they are highly engaged, highly committed. we have been working together on a strategy that we are not yet done. this is lots of work yet to do ahead of us. i think we feel pretty good about our team. emily: that was expedia's new ceo, mark okerstrom. cloud computing hardships grows. by conversation with pat gelsinger's next. check us out on the radio. you can listen on the bloomberg radio app, bloomberg.com, and on xm.ious xm --sirius this is bloomberg. ♪

♪ emily: south korea's samsung is investing $7 billion in flash memory chips. the business has become more profitable in its most recent quarter. tina fey came just days after a court sentenced the vice chair to five years in prison for his role in a bribery scandal. computing company that falls under the dell technology umbrella announced several new partnerships with the likes of

google and amazon web services from their annual conference this week. i sat down with pat gelsinger for exclusive interview and asked how current partners reacted to the latest cloud computing partnership. we havehave -- pat: those conversations. we want to surprises because we are trying to be thoughtful around relationships with them. -- this works with the amazon service we just did. they are working with pivotal in that community. it is really important for us. think about these partnerships like friendships. i may do some things you don't necessarily want me to do, but let me explain to you. i don't want to surprise you. maybe there is even opportunity for us to work together in different ways as a result of this. that is why we approach working with ecosystem partners. emily: that the front of a term termed -- frienemy

applied? this to me to them stealing your business. pat: absolutely not. if you think about it, several have asked that question. customers, if they wanted to just moved to the amazon service, they would have. the amazon -- it is not like the amazon service just appeared yesterday. what customers have found is that to replatform my application, it is hard and does not give me a lot of value. yesterday i had the app. i had to put a lot of work to get there. that is the problem we are solving. we are going to customers and saying, you can take advantage of cloud scale, the cloud geography, cloud economics without re-platforming the application. in many cases the applications we are bringing to the top, they

might have been curated for 20, 30 years. complex network security and management. we now give them an easy button. amazon is excited because they have further from their customers. emily: it has been about a year since the big merger closed, the biggest tech human history. what has it been like for you under the dell technology umbrella? the high points in the pain points? pat: i said three words describe this, independent, ecosystem and acceleration. independent -- we are an independent company. dell, silverlight are the large shareholders. emily: michael does the buggy too much? pat: of course he bugs me a lot, he's the chairman of my board. he was committed to our independent ecosystem and he will accelerate his business with us. we said $1 billion synergy. the independents is great.

when the company is doing well, boards are happy. that is wonderful. ecosystem. think about the partnerships we have announced. announcedn, hp we this week. del+++

technology. ecosystem is being supported. and we raised guidance for acceleration. overall we are seeing themselves more of our products and building more new products together. overall we are exceeding the expectations we had a year ago when we announced the deal. emily: how is the networking business doing? are you seeing meaningful competition from cisco? pat: networking is going great for us. the vision i laid out is really bold and a sense it is not just in the data center. it is more between data centers, between clouds, across clouds. clear stretching to be into the core service provider network. today's announcement into next generation container. we are viewing it as this common fabric that connect all of these things together, turning data centers into centers of data that have these connections across the roads. is going very well. the relationship with cisco -- they view this -- the networking player. we are in this hardware business and what we are finding is customers are running a lot of our overlay networking on the hardware. that is ok. it works great. we support maybe half of our customers running it that way. our vision for where we are taking it is much bigger, much broader than any traditional view of networking. that is what is a thrilling period for the business overall. emily: i know you unveiled a new

security product. how concerned are you at the level of threats that we are seeing from cyberspace? will the industry ever be able to really get ahead? pat: as i declared in my keynote on monday, i think we the tech industry have failed our customers at security. we have almost 2000 different companies and security. mind-boggling innovations going on, but there are so many point products that are chasing bad. but we need to do is think holistically in a very different way to solve the security dilemma. we call it in forcing good. we announced some products that are -- app defense. three things we need to do to fundamentally change the game in security. one, it is not about infrastructure. infrastructure must essentially eliminate many of those products

and make it secured infrastructure. literally products and companies go away, they disappear into the infrastructure. you cannot turn it off. second, we must integrate into the core security ecosystem and automate, integrate, validate so customers are not trying to put these pieces together. we have done it for them. third, enable consistent cyber hiking. we have -- higiene. we had senators talk about cyber higiene. if you get these things, you target.t be sony, opm they would he radically reduced if not eliminated. sort of like a great sports team. you practice the basics. if people were practicing the basics and implement in the things consistently and well, we think we would eliminate a large

portion, maybe 80% or 90% of all cyber losses. we believe this is the right way to think about security in the future. vmware is stepping forward in a much bolder way. it is time to change the game on cybersecurity. emily: that was that gelsinger. -- pat gelsinger. that does it for the "best of bloomberg technology." p.m.in each state at 5:00 in new york, 2:00 p.m. in san francisco. all episodes are livestreaming on twitter. check us out on weekdays. that is all for now. this is bloomberg. ♪

carol: welcome to "bloomberg businessweek." coming up, hurricane harvey hammers texas. oliver: activist investor nelson felt suddenly claiming that play nice. carol: it is stirring up controversy in science. oliver: all that ahead on "bloomberg businessweek." ♪ carol: