GE's CEO sees more partnerships ahead for digital business

SAN FRANCISCO (Reuters) – General Electric Co (GE.N) will use more alliances to build its digital-industrial business in coming years, Chief Executive Officer John Flannery said on Wednesday, suggesting the industrial conglomerate will curb spending in that area.

Microsoft Chief Executive Satya Nadella and General Electric Chief Executive John Flannery speak at General Electric Company’s Minds + Machines conference in San Francisco, California, U.S., October 25, 2017. REUTERS/Alwyn Scott

GE is investing about $ 2.1 billion in GE Digital this year, and executives had said that amount would fall in 2018.

Flannery on Wednesday made his first direct remarks about the digital strategy since he became CEO on Aug. 1. He has begun slashing costs in other areas, including reducing staff, grounding corporate jets and axing the “Maserati benefit” of corporate cars for about 600 senior executives.

Flannery is due to unveil new financial targets on Nov. 13 and is under heavy pressure to turn GE around after the company’s third-quarter earnings and cash flow badly missed targets. GE stock is down 32 percent so far this year, while the S&P 500 index is up 14 percent,

GE’s digital strategy is built around a cloud-based software platform, known as Predix, that connects factories, power plants and other industrial equipment to computers that improve performance and predict outages.

But Predix’s limited capabilities and performance problems have caused GE to lose out to competitors such as Siemens AG (SIEGn.DE) and startups such as Uptake and C3IOT.

Flannery said on Wednesday that GE will focus on selling Predix in its own businesses: energy, oil-and-gas, aviation, healthcare, transportation and mining, as Reuters reported in August.

In other markets, “We’re going to be more selective … and do it largely through partners,” Flannery said at GE’s annual Minds + Machines conference.

FILE PHOTO: The ticker and logo for General Electric Co. is displayed on a screen at the post where it is traded on the floor of the New York Stock Exchange (NYSE) in New York City, U.S. on June 30, 2016. REUTERS/Brendan McDermid/File Photo

Gary Mintchell, chief executive of The Manufacturing Connection, an industrial-internet-focused research and consulting company, said GE’s strategy of using partners reflects the company’s realization that “they can’t build their own ecosystem.”

GE said it was expanding its partnership with Microsoft Corp (MSFT.O), to provide access to Microsoft applications on Predix. The specifics largely duplicated what the companies said when they first announced the deal in July 2016.

GE said Predix will be available on Azure in North America on Nov. 30, months later than the original target of the second quarter. Predix will still be available on Amazon.com Inc’s (AMZN.O) Amazon Web Services cloud platform, GE said.

GE Digital’s chief executive, Bill Ruh, on Wednesday noted a partnership with Hewlett Packard Enterprise Co (HPE.N). GE also is linking Predix with Apple Inc’s (AAPL.O) IOS operating system for iPhones and iPads.

Patrick Franklin, vice president in charge of Predix, said there was still room to improve Predix after the company held a two-month time-out this year to fix bugs, but the platform was showing near-100 percent stability.

“We are paying careful attention to quality,” he said, referring to the delay in deploying Predix on Azure.

GE executives said the company is focusing on developing apps for Predix to boost sales. GE plans to bundle applications for equipment monitoring and service technicians, both of which it bought last year.

GE said orders for Predix were rising sharply. Some customers at the event echoed that view. U.S. utility Exelon Corp (EXC.N), for instance, said it is rolling out Predix to its nuclear, gas, wind and other power plants after a two-year pilot of the system showed it worked as advertised, said Brian Hoff, director of corporate strategy and innovation at Exelon.

“If it didn’t hit its targets, we wouldn’t be moving forward,” Hoff said.

Reporting by Alwyn Scott; Editing by Leslie Adler

Our Standards:The Thomson Reuters Trust Principles.

Tech

Russian Spies Rush to Exploit the Latest Flash Zero Day and More Security News This Week

There’s nothing like a hefty security freakout to start the week, and the Key Reinstallation AttackWi-Fi vulnerability—you know it as Krack—announced on Monday fit the bill. The bug is in the ubiquitous WPA2 Wi-Fi protocol, so while it fortunately doesn’t impact every single device that exists, it does affect a significant portion of them. And many will likely never receive protective patches, a longstanding and critical security problem that particularly affects the Internet of Things. The relative simplicity of the Krack bug itself also highlights the importance of making technical standards accessible to researchers for review and feedback.

Google announced a new tier of account security this week called Advanced Protection that uses physical authentication tokens, advanced scanning, and siloing to help defend particularly at-risk accounts (or anyone who wants to be very cautious). And after its disastrous corporate breach, Equifax is receiving a thorough public shaming. Researchers also discovered that for just $ 1,000 they can exploit mobile advertising networks to track people’s movements in both cyberspace and the real world. Not great!

US-Iranian relations are tense and could nudge Iran’s cyber operations. And crooks have a new favorite hustle called “cryptojacking” that can secretly use your devices to mine cryptocurrency when you visit infected websites. Highs and lows.

And there’s more. As always, we’ve rounded up all the news we didn’t break or cover in depth this week. Click on the headlines to read the full stories. And stay safe out there.

Flash Patched Its Recent Zero Day, So Russian Hackers Are Using It While They Can

Kaspersky Labs researchers announced a new Adobe Flash vulnerability on Monday, noting that unidentified hackers exploited the bug in an attack on October 10, using a compromised Microsoft Word document to deliver FinSpy malware. Adobe coordinated with Kaspersky to issue a patch on the day of the disclosure. In the wake of the patch, researchers at the security firm Proofpoint observed the hackers doubling down to exploit the flaw before potential targets widely adopt the fix. The group, which Proofpoint says is the Russia-backed collective Fancy Bear, launched an email spearphishing campaign that targeted state departments and aerospace companies. But researchers say the operation was sloppy, and that the group has followed this pattern in the past.

Microsoft Didn’t Disclose 2013 Breach of a Sensitive Vulnerability Database

Sophisticated hackers breached Microsoft’s internal vulnerability-tracking database more than four years ago, but the company didn’t publicly disclose the incident. Five former Microsoft employees told Reuters that the company was aware of the intrusion in 2013. The database would have contained critical vulnerabilities in Microsoft’s widely used software products, including Windows, and may have even included code for exploiting those flaws. Such information would be a gold mine for foreign government-backed hackers or third-party criminals alike, and could have facilitated breaches and espionage at the time.

Reuters’ sources said in separate interviews that Microsoft never connected the breach to any other attacks, and that the company didn’t disclose the incident, because doing so would have pushed attackers to exploit the vulnerabilities before they were patched. Microsoft presumably patched everything in the compromised database years ago, though. Reuters’ sources say that the Microsoft did at least improve its internal security in response to the hack. The incident was part of a rash of attacks that also hit Apple, Facebook, and Twitter. The group behind these hacks is still unidentified, but is known by different researchers as Morpho, Butterfly, and Wild Neutron, and is still active today.

UK Concludes That Iran, Not Russia or North Korea, Hacked Officials’ Email Accounts

Investigators in the United Kingdom concluded last week that Iranian government-backed hackers were behind a June email network intrusion that targeted numerous members of parliament and Prime Minister Theresa May. Every MP uses the network, but the hackers specifically looked for accounts protected by weak passwords or reused ones that had leaked online after other breaches. The parliamentary digital services team told the Guardian that it was making email security changes in response to the attack. The incident underscores Iran’s ongoing digital offensive initiatives. Though the country has been less focused on Western targets in the last few years, it is still an active threat around the world. Recently, US President Donald Trump has worked to undermine the Iran nuclear deal, but Theresa May and other European leaders say they want to preserve it.

Police Did Social Media Surveillance on New York Black Lives Matter Group

The Black Lives Matter Global Network chapter in the Rockland County, New York filed a federal lawsuit in August claiming that local Clarkstown police conducted illegal surveillance on it throughout 2015. Clarkstown police records from the Strategic Intelligence Unit describe social-media surveillance targeted at BLM members. The documents even show evidence that a lead detective told the Strategic Intelligence Unit supervisor to stop the surveillance, but this didn’t end the program. BLM is alleging that Clarkstown police engaged in racial profiling, and violated the group members’ rights to free speech and assembly.

Millions of Crucial Cryptography Keys Weakened By Trusted Generator

A flaw in how a popular code base generates cryptographic keys has ruined the security of millions of encryption schemes. The generator appeared in two security certification standards used my numerous governments and large corporations worldwide, meaning that the flawed keys are meant to protect particularly sensitive platforms and data. German chipmaker Infineon developed the software, which has included the key generating flaw since 2012 or possibly earlier. Attackers could exploit the bug to figure out the private part of a key from its public component. From there they could do things like manipulate digitally signed software, disable other network protections, or, of course, decrypt sensitive data. The situation affects Estonia’s much-touted secure digital ID system. Infineon, Microsoft, and Google warn that the flaw will undermine their Trusted Platform Module products until customers generate new, more robust keys. Estonia has announced plans to update the keys used for its national IDs.

Tech

‘I Can’t Think of Anything More Exciting.’ Elon Musk Wants to Colonize Mars in 2022

Elon Musk is bullish about colonizing Mars, maybe even sooner than anyone thought.

Speaking at the International Astronautical Congress (IAC) in Adelaide, South Australia, Musk unveiled plans to launch SpaceX’s (spacex) BFR rocket and begin its Mars rendezvous by the year 2022, first sending two cargo missions to scout water sources and build a fuel plant. Then the city-building begins.

Musk said he’s “confident” the plan will be under way within five years.

“I can’t think of anything more exciting than going out there and being among the stars,” Musk said, adding that he thinks SpaceX has figured out a way to make it affordable by using revenues from the company’s satellite launches, service missions to the International Space Station and by making smaller, more efficient rockets that are mostly reusable.

Nine years after SpaceX’s first successful launch — its fourth ever — Musk said his engineers are now perfecting propulsive landing. He believes the BFR rocket can carry out missions to the moon and back without producing propellant, enabling the establishment of a lunar space station.

“It’s 2017, we should have a lunar base by now,” Musk said to applause. “What the hell is going on?”

For more on space travel, watch Fortune’s video:

Travel to and from Mars will, however, require a propellant production plant. Current rocket prototypes provide cabin space suitable for about 100 people per mission, he said. Following the two projected missions in 2022, Musk said SpaceX plans to send four more rockets to the red planet during the next available window in 2024. Once colonization is under way, then begins the task of “making it a nice place to be.”

Founded by Musk in 2002, SpaceX designs, manufactures and launches spacecraft and advanced rockets toward the ultimate goal of enabling human life on other planets.

But Musk, who also co-founded and serves as CEO of Tesla Motors (tsla), remains grounded in his ambitions. SpaceX could potentially change the way we travel around the globe, he said, making it possible to get anywhere on earth in less than hour. “If we’re building this thing to go to mars,” Musk asked, “why not go to other places on earth as well?”

Tech

7 can’t-miss apps: Chaatz, Fender Tune, ‘Eraser’ and more

With an impressive new VR headset launching and even more iPhone rumors, you may have missed this week’s best new apps.

Each weekend, we round up a few of our favorite new and updated apps. This week’s list includes a game that lets you explore Mars, a funky chat app and a guitar-tuning app.

Check out the gallery below to see our top picks. If you’re looking for more items to fill up your phone, take a look at our last roundup of can’t-miss apps.

Read more…

More about Weekly App Roundup, Apps And Software, Tech, and Apps Software


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Awful Australian election made more awful by awful Facebook Live videos

The 2016 Australian election campaign has so far been the political equivalent of chipping off old nail polish. It seems only right it be accompanied by the most banal of content: The badly-shot Facebook Live video.

Prime Minister Malcolm Turnbull, leader of the Liberal Party, has been facing off against Bill Shorten, leader of the Labor Party. Their parties may disagree on some points, but they definitely come together on garbage video quality.

If you enjoy your eyeballs being tossed like salad, try this video from the Australian Labor Party. Read more…

More about Facebook Live, Facebook, Australia, and Tech


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