Amazon on Wednesday began laying off some employees in its cloud computing and human resources divisions. From a report: Amazon Web Services CEO Adam Selipsky and human resources head Beth Galetti sent notes to staffers in the U.S., Canada and Costa Rica informing them of the job cuts. "It is a tough day across our organization," Selipsky wrote in the memo. The layoffs are part of the previously announced job cuts that are expected to affect 9,000 employees. Last week, Amazon laid off some employees in its advertising unit, and it has let go of staffers in its video games and Twitch livestreaming units in recent weeks. Amazon wrapped up a separate round of cuts earlier this year that affected approximately 18,000 employees. Combined with the cuts this month, it marks the largest layoffs in Amazon's 29-year history. Amazon CEO Andy Jassy has been aggressively slashing costs across the company as the e-retailer reckons with an economic downturn and slowing growth in its core retail business. Amazon froze hiring in its corporate workforce, axed some experimental projects and slowed warehouse expansion.

Microsoft's $69 billion takeover of Activision Blizzard, suffered a hammer blow after Britain's antitrust watchdog vetoed the gaming industry's biggest ever deal, saying it would harm competition on the cloud. From a report: The Competition and Markets Authority said its concerns couldn't be solved by remedies such as the sale of blockbuster title Call of Duty or so-called behavioral remedies involving promises to permit rivals to offer the game on their platforms, according to a statement Wednesday. Pressure had been mounting on Microsoft as it lobbies at home and in Europe to convince watchdogs to clear the deal -- one of the 30 biggest acquisitions of all time. Crucially, the CMA's conclusions comes before decisions from the European Union and the US Federal Trade Commission, which is awaiting a hearing in the summer after formally suing to veto the transaction.

In early April with the start of previews for "Windows Frontline" -- a service that provides a single license for frontline employees to use up to three Cloud PCs, Microsoft floated the idea that businesses should buy fewer PCs. The Register reports: The "Frontline" name hints at its purpose: Microsoft thinks this license will benefit organizations that employ shift workers in roles like customer support or healthcare. Microsoft imagines shift workers will log on for eight hours, then the next worker on duty will do likewise, and advances this as a fairer way to charge than assuming cloud PCs are used 24x7. To burnish that argument, Microsoft's launch material for Windows Frontline included research (PDF) by tech sustainability consultancy Px3 that tries to answer the question "Can modern work applications and endpoints abate end user computing greenhouse gas emissions and drive climate action?" The answer is "Yes," when one considers cloudy PCs to be "modern endpoints."

The research reaches that conclusion with analysis of the energy consumption of desktop computers, laptops, tablets, and thin clients, compared to the impact of running a Cloud PC. The research also considers bring your own PC plans that see business fund the acquisition of PCs that their staff use for personal and employment purposes, meaning fewer devices need to be summoned into existence and fewer resources are consumed because users operate one machine instead of two. Px3 instead imagines that end users and their sole device to access a Windows365 Cloud PC when they're on the clock. Doing so would mean corporate PC replacement cycles could stretch to eight years!

Readers will not be surprised that the research found the combination of Windows365 and a bring your own PC plan has significantly lower environmental impact and is therefore a jolly good idea. The research's concluding paragraph states "it is reasonable to state that modern work applications and endpoint computers not only abate GHG emissions, they are perhaps critical to securing a sustainable future." That's perhaps a little overblown but the point is made: slowing consumption is a good idea and it's now possible to turn down the speed of the PC upgrade treadmill.

Google's cloud business has turned profitable for the first time in the three years it's been reporting operating metrics. CNBC reports: The segment generated $191 million in operating income on $7.45 billion in revenue in the first quarter, according to Alphabet's earnings statement. In the year-ago quarter, the unit reported a $706 million loss on $5.82 billion in revenue. The cloud business includes the Google Cloud Platform, which rents out cloud infrastructure and services that companies can use to build and run their own applications, as well as Google Workspace productivity software subscriptions. Cloud customers include Deutsche Bank, Major League Baseball, PayPal and UPS.

Google Authenticator just got an update that should make it more useful for people who frequently use the service to sign in to apps and websites. From a report: As of today, Google Authenticator will now sync any one-time two-factor authentication (2FA) codes that it generates to users' Google Accounts. Previously, one-time Authenticator codes were stored locally, on a single device, meaning losing that device often meant losing the ability to sign in to any service set up with Authenticator's 2FA. To take advantage of the new sync feature, simply update the Authenticator app. If you're signed in to a Google Account within Google Authenticator, your codes will automatically be backed up and restored on any new device you use. You can also manually transfer your codes to another device even if you're not signed in to a Google Account by following the steps on this support page.

Some users might be wary of syncing their sensitive codes with Google's cloud -- even if they did originate from a Google product. But Christiaan Brand, a group product manager at Google, asserts it's in the pursuit of convenience without sacrificing security. "We released Google Authenticator in 2010 as a free and easy way for sites to add 'something you have' 2FA that bolsters user security when signing in," Brand wrote in the blog post announcing today's change. "With this update we're rolling out a solution to this problem, making one time codes more durable by storing them safely in users' Google Account."

Google is leaning into flexibility as part of a new strategy to stymie the impact of belt-tightening among cyber chiefs. From a report: Google Cloud and Mandiant, the threat intelligence unit it acquired last year, unveiled at the RSA Conference in San Francisco today that they're opening their security products to integrations from competitors, as well as offering new Google plug-ins for other vendors' tools. The news, which was shared first with Axios, means that Google customers will now have more options to embed Google's tools in partner companies' products, like CrowdStrike, Trellix and SentinelOne. Other companies, like Accenture and login management company Okta, will also be integrating their products into Google's as part of the plan. Chief information security officers are facing increasing board pressure during a wobbly economy to cut down the number of vendors they work with and simplify their security programs. As a result, vendors have started to intertwine their competitors' products into their own tools in recent years to reach more customers.

"Once-booming demand for cloud-computing services is slowing..." reports Bloomberg. "When Microsoft and Amazon report results next week, analysts are anticipating the slowest revenue growth for their cloud-computing businesses since the firms started breaking out performance last decade." For years, demand for cloud-computing services has steadily driven growth at both Microsoft and Amazon... Microsoft's Intelligent Cloud unit, which is home to its Azure cloud-services business, accounted for 38% of its revenue and 39% of operating income in 2022. Amazon Web Services was the fastest-growing of the Seattle-based company's major businesses last year and generated $22.8 billion in operating income. The rest of Amazon's businesses combined posted a $10.6 billion operating loss.

For both companies, cracks are starting to appear. In the first three months of 2023, growth for Microsoft's Azure unit and Amazon Web Services is expected to fall to 31% and 14%, respectively, excluding currency fluctuations, according to the average of analyst estimates compiled by Bloomberg. A year ago, Azure sales expanded 49% and Amazon Web Services 37%.

In a shareholder letter released last week, Amazon said AWS "faces short-term head winds" related to the economic backdrop that will "soften" the growth rate. This echoed what it said in its most recent results. Microsoft also warned of a slowdown in cloud software sales last quarter. Wall Street has been getting more cautious. UBS lowered growth estimates for Azure last week, warning "customer efforts to optimize/trim their cloud spend will be deeper and last longer than most think...." Jefferies [financial services company] sees slowing cloud demand as "a key concern" for Amazon. Analyst Brent Thill said that because AWS generates so much of Amazon's operating income, "a stabilization in cloud is crucial for shares to outperform."

For Alec Young, chief investment strategist at MAPsignals, Microsoft and Amazon remain attractive despite the slowdown, which he expects to be a temporary pause before growth re-accelerates. "There's still a lot of runway ahead for cloud computing, so I don't think investors should obsess too much over the level of growth over a couple quarters," he said.

America's Department of Homeland Security "will establish a new task force to examine how the government can use artificial intelligence technology to protect the country," reports CNBC.

The task force was announcement by department secretary Alejandro Mayorkas Friday during a speech at a Council on Foreign Relations event: "Our department will lead in the responsible use of AI to secure the homeland," Mayorkas said, while also pledging to defend "against the malicious use of this transformational technology." He added, "As we do this, we will ensure that our use of AI is rigorously tested to avoid bias and disparate impact and is clearly explainable to the people we serve...."

Mayorkas gave two examples of how the task force will help determine how AI could be used to fine-tune the agency's work. One is to deploy AI into DHS systems that screen cargo for goods produced by forced labor. The second is to use the technology to better detect fentanyl in shipments to the U.S., as well as identifying and stopping the flow of "precursor chemicals" used to produce the dangerous drug.

Mayorkas asked Homeland Security Advisory Council Co-Chair Jamie Gorelick to study "the intersection of AI and homeland security and deliver findings that will help guide our use of it and defense against it."
The article also notes that earlier this week America's defense department hired a former Google AI cloud director to serve as its first advisor on AI, robotics, cloud computing and data analytics.

The Biden administration is beginning to plan for 6G wireless telecommunications, seeking to expand internet access while reasserting U.S. leadership in a sector where China has notched gains. WSJ: The White House on Friday will meet with corporate, government and academic experts to begin developing goals and strategies for the new 6G communications technology, which would have the ability to take cloud computing and the mobile internet to true global ubiquity, among other improvements. The next generation of telecom is still years away from deployment, but it could pave the way for global internet access still unavailable with the current 5G standard, which makes smartphone downloads and wireless hot-spot connections faster. Expanding access to the internet has been a priority for the Biden administration as part of its infrastructure initiatives. The 6G planning initiative also aims to reassert the leadership of the U.S. and its allies in telecommunications, where China has made gains thanks in part to careful nurturing of homegrown equipment manufacturing and increased participation in international standard-setting.

Microsoft is heading further down the path of advertising its own services in Windows 11, with different ads now popping up in the Start menu. From a report: To be precise, this is Windows 11 preview build 23435, which was just released to the Dev channel. As Microsoft puts it: "We are continuing the exploration of badging on the Start menu with several new treatments for users logging in with local user accounts to highlight the benefits of signing in with a Microsoft account (MSA)." So, the translation of this is that 'badging' is essentially advertising ('badgering' would perhaps be more accurate), and it's something we've recently seen with Windows 11 urging users to perform a cloud backup (in OneDrive).

In this new preview build, the prodding stick is being employed to nudge those who haven't enlisted for a Microsoft Account (who remain using a local account) into signing up for an MSA. Compared to the previous cloud backup prompt on the Start menu, it's even clearer that this is advertising because it's fully selling the benefits of having a Microsoft account. For example, Microsoft tells you how hooking your Windows 11 installation into an MSA will ensure that your PC is kept backed up and more secure, or that it'll keep your settings synced across multiple devices.

An anonymous reader quotes a report from Ars Technica: On Monday, Microsoft and Epic Systems announced that they are bringing OpenAI's GPT-4 AI language model into health care for use in drafting message responses from health care workers to patients and for use in analyzing medical records while looking for trends. Epic Systems is one of America's largest health care software companies. Its electronic health records (EHR) software (such as MyChart) is reportedly used in over 29 percent of acute hospitals in the United States, and over 305 million patients have an electronic record in Epic worldwide. Tangentially, Epic's history of using predictive algorithms in health care has attracted some criticism in the past.

In Monday's announcement, Microsoft mentions two specific ways Epic will use its Azure OpenAI Service, which provides API access to OpenAI's large language models (LLMs), such as GPT-3 and GPT-4. In layperson's terms, it means that companies can hire Microsoft to provide generative AI services for them using Microsoft's Azure cloud platform. The first use of GPT-4 comes in the form of allowing doctors and health care workers to automatically draft message responses to patients. The press release quotes Chero Goswami, chief information officer at UW Health in Wisconsin, as saying, "Integrating generative AI into some of our daily workflows will increase productivity for many of our providers, allowing them to focus on the clinical duties that truly require their attention." The second use will bring natural language queries and "data analysis" to SlicerDicer, which is Epic's data-exploration tool that allows searches across large numbers of patients to identify trends that could be useful for making new discoveries or for financial reasons. According to Microsoft, that will help "clinical leaders explore data in a conversational and intuitive way." Imagine talking to a chatbot similar to ChatGPT and asking it questions about trends in patient medical records, and you might get the picture. Dr. Margaret Mitchell, chief ethics scientist at Hugging Face, is concerned about GPT-4's ability to make up information that isn't represented in its data set. Another concern is the potential bias in GPT-4 that might discriminate against certain patients based on gender, race, age, or other factors.

"Combined with the well-known problem of automation bias, where even experts will believe things that are incorrect if they're generated automatically by a system, this work will foreseeably generate false information," says Mitchell. "In the clinical setting, this can mean the difference between life and death."

The global excitement around ChatGPT, and the haste to copy it, resembles the introduction of an Apple product. Everyone is stoked to try it, and other tech companies are working late nights to reverse engineer it. This time, Apple is nowhere to be found. Has the speed of it all caught the world's most influential tech company by surprise? From a report: Microsoft has poured $10 billion into OpenAI, the maker of ChatGPT, and reconfigured how it builds server farms to accommodate more of Nvidia's class-leading processors for training artificial intelligence. Alphabet's Google has made responding to ChatGPT a top priority. Amazon has also jumped into the fray with its cloud division. That's four of the world's top seven most valuable companies, and yet, the most valuable of them all seems to have no ready answer for what's coming. Bloomberg reported on an internal AI summit Apple held in February, when machine learning and other deployments of the tech across Apple products were discussed, but there was no hint of anything in the genre of generative AI.

AI in Apple products today is like irrigation for its walled garden, essential and helpful for an increasing number of functions, but ultimately it's the hardware fruit that Apple sells. Generative AI could come in like a tidal wave. Apple, by all appearances, squandered the lead it established since becoming the first big tech company to make an AI-powered voice assistant. Siri was clearly flawed from the start, but it looks ancient by the standards of ChatGPT. To compete in this new AI race, companies need massive, bespoke computational clusters that cost hundreds of millions of dollars. Cloud services are not Apple's strongest suit right now, as its chief for that division is leaving, and iCloud has been the subject of lament in this very newsletter. The company is investing significant resources in the augmented-reality headset we expect to debut in June and the long-mooted, capital-intensive automotive initiative.

An anonymous reader shares a report: A month ago, Adobe announced Firefly, its entry into the generative AI game. Initially, Firefly's focus was on generating commercially safe images, but the company is now pushing its technology beyond still images. As the company announced today, it will soon bring Firefly to its Creative Cloud video and audio applications. To be clear, you won't (yet) be able to use Firefly to create custom videos yet. Instead, the emphasis here is on making it easier for anyone to edit videos, color grade using just a few words, add music and sound effects and create title cards with animated fonts, graphics and logos. However, Firefly also promises to automatically turn scripts into storyboards and pre-visualizations -- and it will recommend b-roll to liven up videos. Maybe the highlight of these promised new features is being able to color grade a video by simply describing what a video should look like with just a few words (think "golden hour" or "brighten face"). Other new AI-based features include the ability to generate custom sounds and music. Firefly will also help editors create subtitles, logos and title cards by having them describe what they want them to look like.

"The Spectre vulnerability that has haunted hardware and software makers since 2018 continues to defy efforts to bury it," reports the Register: On Thursday, Eduardo (sirdarckcat) Vela Nava, from Google's product security response team, disclosed a Spectre-related flaw in version 6.2 of the Linux kernel. The bug, designated medium severity, was initially reported to cloud service providers — those most likely to be affected — on December 31, 2022, and was patched in Linux on February 27, 2023.

"The kernel failed to protect applications that attempted to protect against Spectre v2, leaving them open to attack from other processes running on the same physical core in another hyperthread," the vulnerability disclosure explains. The consequence of that attack is potential information exposure (e.g., leaked private keys) through this pernicous problem....

Spectre v2 — the variant implicated in this particular vulnerability — relies on timing side-channels to measure the misprediction rates of indirect branch prediction in order to infer the contents of protected memory. That's far from optimal in a cloud environment with shared hardware... The bug hunters who identified the issue found that Linux userspace processes to defend against Spectre v2 didn't work on VMs of "at least one major cloud provider."

An anonymous reader shares a report: For Red Hat, which turned 30 on March 27, it was a cause for celebration. From a business that got started in one of its co-founder's wife's sewing room, it became the first billion-dollar pure-play open-source company and then the engine driving IBM. It has been a long strange trip. Sure, today, the tech world is dominated by Linux and open source software, but in 1993, Linux was merely an obscure operating system known only to enthusiasts. Red Hat played a significant role in transforming the "just a hobby" operating system into today's major IT powerhouse. Red Hat co-founder Bob Young, who previously ran a rental typewriter business, was one of those who became intrigued by Linux. In 1993, he established ACC Corporation, a catalog company that distributed Slackware Linux CDs and open-source software.

[...] In 2003, Paul Cormier, then Red Hat's vice president of engineering and now the company's chairman, spearheaded the shift from the inexpensive prosumer Red Hat Linux distribution to the full business-oriented Red Hat Enterprise Linux (RHEL). At the time, many Linux users hated the idea. Even inside Red Hat, Cormier said that many engineers were initially opposed to the new business model, causing some to leave the company while others stayed. The change also upset many users who felt Red Hat was abandoning its original customers. However, enterprise clients had a different perspective. Whitehurst, who became Red Hat CEO in 2008, said, "Once RHEL was in the market, we had to fully support it to make it truly consumable for the enterprise." They succeeded, and Red Hat continued to grow. This is the model that turned Red Hat into the first billion-dollar-a-quarter pure open-source company. Impressive for a business built around an operating system once considered suitable only for the "lunatic fringe." Then, in 2018, IBM acquired Red Hat for a cool $34 billion. There was nothing crazy about that move.

[...] Another change that was already present in Red Hat, a shift towards supporting the cloud, has accelerated. Today, while RHEL remains the heart of the business, the Linux-powered cloud has become increasingly important. In particular, Red Hat OpenShift, its Kubernetes-powered hybrid cloud application platform, is more important than ever. Where does Red Hat go from here? When I last talked to Cormier and Red Hat's latest CEO, Matt Hicks, they told me that they'd keep moving forward with the hybrid cloud. After all, as Cormier pointed out, "the cloud wouldn't be here" without Linux and open source. As for Red Hat's relationship with IBM, Cormier said, "The red lines were red, and the blue lines were blue, and that will stay the same."

International Business Machines is exploring a sale of its weather operation, WSJ reported, citing people familiar with the matter, as the technology company seeks to streamline its operations. From a report: An auction of the business is at an early stage, the people said, and there may not be a deal. Should there be one, private-equity is most likely the buyer in a deal that could be valued at more than $1 billion, the people said. IBM agreed to buy the business in 2015, purchasing The Weather Company's business-to-business, mobile and cloud-based businesses including Weather.com, which provides weather forecasts around the globe. The deal price at the time was pegged at more than $2 billion.

The Weather Channel wasn't part of the deal, but agreed to license weather-forecast data and analytics from IBM. The deal was part of a push by IBM to use its cloud infrastructure to provide accurate weather forecasts and help companies control costs. The business issues more than 25 billion forecasts a day, according to the company's website. A sale of the weather unit would be a part of a broader push by IBM to streamline its operations as the once-dominant company's shares languish near levels they traded at more than 20 years ago.

Amazon is introducing a cloud service called Bedrock that developers can use to enhance their software with artificial intelligence systems that can generate text, similar to the engine behind the popular ChatGPT chatbot powered by Microsoft-backed startup OpenAI. From a report: The announcement indicates that the largest provider of cloud infrastructure won't be leaving a trendy growth area to challengers such as Google and Microsoft, both of which have started offering developers large language models they can tap into. Generally speaking, large language models are AI programs trained with extensive amounts of data that can compose human-like text in response to prompts that people type in.

Through its Bedrock generative AI service, Amazon Web Services will offer access to its own first-party language models called Titan, as well as language models from startups AI21 and Google-backed Anthropic, and a model for turning text into images from startup Stability AI. One Titan model can generate text for blog posts, emails or other documents. The other can help with search and personalization. "Most companies want to use these large language models but the really good ones take billions of dollars to train and many years and most companies don't want to go through that," Amazon CEO Andy Jassy said on CNBC's "Squawk Box" Thursday. "So what they want to do is they want to work off of a foundational model that's big and great already and then have the ability to customize it for their own purposes. And that's what Bedrock is."

Hyper-volumetric DDoS (distributed denial of service) attacks in the first quarter of 2023 have shifted from relying on compromised IoT devices to leveraging breached Virtual Private Servers (VPS). BleepingComputer reports: According to internet security company Cloudflare, the newer generation of botnets gradually abandoned the tactic of building large swarms of individually weak IoT devices and are now shifting towards enslaving vulnerable and misconfigured VPS servers using leaked API credentials or known exploits. This approach helps the threat actors build high-performance botnets easier and often quicker, which can be up to 5,000 times stronger than IoT-based botnets.

"The new generation of botnets uses a fraction of the amount of devices, but each device is substantially stronger," explains Cloudflare in the report. "Cloud computing providers offer virtual private servers to allow start ups and businesses to create performant applications. The downside is that it also allows attackers to create high-performance botnets that can be as much as 5,000x stronger." Cloudflare has been working with key cloud computing providers and partners to crack down on these emerging VPS-based threats and says it has succeeded in taking down substantial portions of these novel botnets.

The European Commission on Wednesday said U.S. chipmaker Broadcom's proposed $61 billion takeover of cloud computing company VMware could restrict competition in the market for certain hardware components. From a report: The Commission said it had informed Broadcom of its objection that the deal could restrict competition in the global markets for the supply of so-called fibre channel host bus adapters (FC HBAs) and storage adapters, by limiting access for competitors' hardware to VMware's software.

schwit1 shares a report from Inverse: On March 23, sky observers marveled at a gorgeous display of northern and southern lights. It was a reminder that when our Sun gets active, it can spark a phenomenon called "space weather." Aurorae are among the most benign effects of this phenomenon. At the other end of the space weather spectrum are solar storms that can knock out satellites. The folks at Starlink found that out the hard way in February 2022. On January 29 that year, the Sun belched out a class M 1.1 flare and related coronal mass ejection. Material from the Sun traveled out on the solar wind and arrived at Earth a few days later. On February 3, Starlink launched a group of 49 satellites to an altitude only 130 miles above Earth's surface. They didn't last long, and now solar physicists know why.

A group of researchers from NASA Goddard Space Flight Center and the Catholic University of America took a closer look at the specifics of that storm. Their analysis identified a mass of plasma that impacted our planet's magnetosphere. The actual event was a halo coronal mass ejection from an active region in the northeast quadrant of the Sun. The material traveled out at around 690 kilometers per second as a shock-driving magnetic cloud. Think of it as a long ropy mass of material writhing its way through space. As it traveled, it expanded and at solar-facing satellites -- including STEREO-A, which took a direct hit from it -- made observations. Eventually, the cloud smacked into Earth's magnetosphere creating a geomagnetic storm.

The atmosphere thickened enough that it affected the newly launched Starlink stations. They started to experience atmospheric drag, which caused them to deorbit and burn up on the way down. It was an expensive lesson in space weather and provided people on Earth with a great view of what happens when satellites fall back to Earth. It was also that could have been avoided if they'd delayed their launch to account for the ongoing threat.