WEBVTT - Broadcom Purchases VMWare 0:00:02.279 --> 0:00:05.560 From the heart of where innovation, money and power COLLI 0:00:06.400 --> 0:00:10.920 in Silicon Valley and beyond. This is Bloomberg Technology with 0:00:11.000 --> 0:00:27.720 Emily Jay I'm Emily changing San Francisco, and this is 0:00:27.760 --> 0:00:30.760 Bloomberg Technology. Coming up. In the next hour, Broadcom makes 0:00:30.760 --> 0:00:34.000 it official, striking a deal to buy vm Whare for 0:00:34.120 --> 0:00:36.879 sixty one billion dollars. We will have all the details 0:00:36.880 --> 0:00:40.080 on how one of the tech's biggest deals could reshape 0:00:40.120 --> 0:00:44.160 the cloud and chip industries. Coming up. Plus, I'm joined 0:00:44.159 --> 0:00:47.440 exclusively by Google Cloud CEO Thomas Curia. I'll get his 0:00:47.479 --> 0:00:50.239 thoughts on that Broadcom deal, plus how Google and its 0:00:50.240 --> 0:00:55.360 cloud customers are weathering this market termoil, and how one 0:00:55.400 --> 0:00:59.840 startup raised a new round with all female investors, seventy 0:01:00.040 --> 0:01:02.480 five of them. I'll speak to investor Kara Northman and 0:01:02.520 --> 0:01:05.759 Solve co founder Heather Fernandez about how more companies can 0:01:05.880 --> 0:01:08.840 change the gender balance of their cap tables in one 0:01:08.880 --> 0:01:11.880 fell sweep all of that in a moment, But first 0:01:11.920 --> 0:01:13.560 I want to get a look at the market where 0:01:13.560 --> 0:01:17.080 tech stacks stage to come back at Ludlow here with 0:01:17.120 --> 0:01:19.600 the latest and finally some good news. Yeah, finally we 0:01:19.680 --> 0:01:22.360 saw kind of this broad equity market rally. Tech at 0:01:22.360 --> 0:01:23.960 the heart of it, Retail the heart of it will 0:01:24.000 --> 0:01:25.360 touch on it just the moment. You see then as 0:01:25.360 --> 0:01:27.920 that one hundred up two point eight percent, biggest jump 0:01:28.000 --> 0:01:29.920 for that tech heavy index in a week. It was 0:01:29.959 --> 0:01:32.280 interesting because I was going through the bloomberg. It's the 0:01:32.319 --> 0:01:35.040 first back to back gains. We've seen two days of gains. 0:01:35.040 --> 0:01:37.600 And then as that one hundred in almost four weeks, 0:01:37.600 --> 0:01:40.000 which kind of shows how things have been recently right, 0:01:40.200 --> 0:01:42.160 very much in the red. And you see that across 0:01:42.200 --> 0:01:45.319 the technology sector, semi conductors up, the mega caps. Also, 0:01:45.560 --> 0:01:48.040 if there was an area of pressure or some selling 0:01:48.040 --> 0:01:51.040 across financial markets, it was in old coins. You see 0:01:51.080 --> 0:01:53.440 Ether on your screen, there's green there because we're going 0:01:53.440 --> 0:01:56.360 into the next day session, but it's at around one thousand, 0:01:56.440 --> 0:01:59.200 eight hundred dollars per token, well below the two thousand 0:01:59.240 --> 0:02:02.040 level that technical and lists are looking for. And come 0:02:02.080 --> 0:02:04.760 with me into my bloombotuminal. Let's call it right now. 0:02:04.880 --> 0:02:08.040 Let's end it right here, because then as that one 0:02:08.520 --> 0:02:11.799 on a weekly basis is in the green, it's Thursday, 0:02:12.080 --> 0:02:15.040 let's just call it because then that way we snap 0:02:15.120 --> 0:02:17.960 seven straight weeks of declines. It looks like we've turned 0:02:18.000 --> 0:02:20.160 a corner. You can't hang your hat on one week, 0:02:20.400 --> 0:02:22.680 but my goodness, do we need some positivity? Do we 0:02:22.720 --> 0:02:25.200 need some green? R up almost four percentage points, and 0:02:25.320 --> 0:02:28.360 that's that one so far this week. Please Friday, don't 0:02:28.440 --> 0:02:30.120 ruin it. I've had enough. A big part of the 0:02:30.160 --> 0:02:31.680 story when you come back to me in the studio 0:02:32.080 --> 0:02:35.399 is earnings and Video actually missing estimates, particularly on the forecast, 0:02:35.520 --> 0:02:38.960 but that stock up five percent. The market sanguine, Macy's 0:02:39.000 --> 0:02:44.400 incredible lots of confidence, upgrading their profit outlook. People still 0:02:44.400 --> 0:02:47.359 want to buy fancy stuff. I love fancy stuff. And 0:02:47.639 --> 0:02:49.760 how do you think all the M and A we're 0:02:49.800 --> 0:02:52.240 seeing this big tech deal, the number of deals we've 0:02:52.280 --> 0:02:55.919 seen in general is a signal that maybe maybe we're 0:02:55.919 --> 0:02:58.360 turning a corner. Well, it's interesting because I joke about 0:02:58.360 --> 0:03:00.200 that chart, but there is a feel good fact write 0:03:00.240 --> 0:03:01.760 a lot of activity, A love M and A. In 0:03:01.800 --> 0:03:05.480 the tech sector, Twitter up six percentage points on Thursday. 0:03:05.520 --> 0:03:07.960 Tests are up almost eight percent. And the big story here, 0:03:08.000 --> 0:03:11.000 of course, is Musque adjusting the financing package for his 0:03:11.040 --> 0:03:13.280 bid to buy the company, getting rid of the margin 0:03:13.320 --> 0:03:17.280 loan component and bring in more equity financing. Some bullishness 0:03:17.280 --> 0:03:19.079 that this deal might happen. Of course, the other big 0:03:19.080 --> 0:03:24.360 story is Broadcom vm Ware massive sixty one billion dollar deal. 0:03:24.919 --> 0:03:27.640 Bloomberg scoop we refers to report that they were in talks. 0:03:27.800 --> 0:03:31.680 We got official confirmation on Thursday. What does this mean 0:03:31.760 --> 0:03:33.679 for the company? What does this mean for this health 0:03:33.720 --> 0:03:37.720 of the technology sector broadly? It's a really interesting timing. Indeed, 0:03:37.880 --> 0:03:39.680 Ed Ludlow, thank you. I want to stick with that 0:03:39.720 --> 0:03:42.680 Broadcom deal for vm Ware now and bringing angel as 0:03:42.680 --> 0:03:44.360 you know of cf A as well as our very 0:03:44.360 --> 0:03:48.120 own Leanna Baker, Leona, your team broke the news of 0:03:48.200 --> 0:03:52.120 this deal. Here we are officially being announced. Talk to 0:03:52.200 --> 0:03:54.160 us about the nuts and bolts, the new things that 0:03:54.200 --> 0:03:56.760 we know now that maybe we didn't know earlier this week. Sure, 0:03:56.840 --> 0:03:59.360 so we saw the exact price of the deal, although 0:03:59.360 --> 0:04:02.000 it does key sort of fluctuating because it's fifty percent 0:04:02.120 --> 0:04:05.600 cash and fifty percent stock, so it'll change day by day. 0:04:05.640 --> 0:04:07.800 But we did see that it's about sixty one billion, 0:04:08.320 --> 0:04:10.560 which is a pretty big premium for vm Ware, but 0:04:10.640 --> 0:04:12.360 maybe not as high as it would have been had 0:04:12.360 --> 0:04:15.560 it not been for this text sell off. Another interesting 0:04:15.920 --> 0:04:18.720 angle on the deal is that vm Ware can solicit 0:04:18.760 --> 0:04:21.919 other offers. So we're gonna be monitoring whether there's a 0:04:21.920 --> 0:04:24.760 bidding war and who else could emerge because they have 0:04:24.839 --> 0:04:28.360 forty days to potentially find a new buyer. Angelo, are 0:04:28.400 --> 0:04:30.520 you thinking there could be a bidding war here? Are 0:04:30.520 --> 0:04:34.000 there other suitors out there? I mean, were likely others 0:04:34.040 --> 0:04:36.680 that might pick up the phone and enquire about it. 0:04:36.720 --> 0:04:39.159 But to be honest with you, as far as you know, 0:04:39.200 --> 0:04:42.600 the terms of this deal is concerned the price here. Um. 0:04:42.600 --> 0:04:45.200 I actually think it's a very compelling author out there 0:04:45.320 --> 0:04:47.680 for more vm Ware investors. And you know, at the 0:04:47.720 --> 0:04:49.400 end of the day, I do think that fell kind 0:04:49.400 --> 0:04:54.120 of go through, um, you know, via the hands of Broadcom. Leanna, 0:04:54.160 --> 0:04:56.480 What do we know about how Broadcom intends to run 0:04:56.920 --> 0:05:00.680 vm ware? Will it stay independent, Which of broadcast services 0:05:00.760 --> 0:05:04.680 will they emphasize, which might be de emphasized. So I 0:05:04.720 --> 0:05:08.560 interviewed the Broadcom executive Tom Krause today, who helped engineer 0:05:08.640 --> 0:05:12.160 the deal, and he mentioned that they're going to rename 0:05:12.240 --> 0:05:15.479 the whole software division of Broadcom vm Ware. So I 0:05:15.520 --> 0:05:17.440 think vm Ware almost is sort of going to run 0:05:17.480 --> 0:05:21.159 the rest of Broadcom's software. So we'll have to see, 0:05:21.279 --> 0:05:23.400 but it may take a year for the deal to close, 0:05:23.400 --> 0:05:25.839 so we won't see anything just yet. But Broadcom does 0:05:25.920 --> 0:05:29.119 like to keep its franchises intact. I'm sure they'll try 0:05:29.440 --> 0:05:32.240 to you know, raise margins, but I would expect that 0:05:32.279 --> 0:05:36.400 not a lot will change once the deal closes. So Angelo, 0:05:36.560 --> 0:05:41.080 how optim how competitive do you think a software portfolio 0:05:41.200 --> 0:05:45.599 within Broadcom under this VM where Umbrella will actually be? 0:05:47.720 --> 0:05:49.720 You know that I think Yale Hawk has done an 0:05:49.720 --> 0:05:53.880 absolutely fantastic job here, um kind of transitioning the company 0:05:53.920 --> 0:05:57.200 around into one that's also definitely sold by driven and 0:05:57.240 --> 0:05:58.800 I think this really is going to kind of be 0:05:59.360 --> 0:06:02.279 that crowned the world for their software business. That really 0:06:02.320 --> 0:06:05.120 doubles the size of that business, right, so it gets 0:06:05.160 --> 0:06:07.920 them to nearly half of their revenue base there, um, 0:06:07.960 --> 0:06:10.440 you know, was the run rate was about a sales 0:06:10.480 --> 0:06:12.359 so at the end of the day, and you know, 0:06:12.400 --> 0:06:15.960 I think this definitely kind of um significantly improves the 0:06:16.080 --> 0:06:19.800 growth profile of that software business, which is extremely important. 0:06:19.880 --> 0:06:21.920 This was a business that was kind of growing very 0:06:21.960 --> 0:06:24.000 low single digit pace. When you kind of look at 0:06:24.000 --> 0:06:26.400 somebody assets they've acquired a lot of you know, a 0:06:26.440 --> 0:06:28.800 lot of those acquired assets was really kind of just 0:06:29.120 --> 0:06:31.640 you know, from a free cash flow potential, um, just 0:06:31.720 --> 0:06:34.320 improve the cash flow generation of that company. What vm 0:06:34.360 --> 0:06:37.479 Ware does here is it really kind of catapults at 0:06:37.560 --> 0:06:41.279 least the the growth potential within that software business towards 0:06:41.360 --> 0:06:44.719 one that's more kind of mid single digit range, So 0:06:45.160 --> 0:06:48.760 definitely more compelling I think long term for that software business. 0:06:48.839 --> 0:06:53.320 Within Broadcom Leana, we were looking at a chart of 0:06:53.520 --> 0:06:56.360 the big tech deals that have been done in the 0:06:56.440 --> 0:06:58.919 last few months, going all the way back to Microsoft 0:06:59.200 --> 0:07:03.440 and Activist, and are you expecting more big deals this year? 0:07:03.560 --> 0:07:06.559 Are are we moving into an environment you know, given 0:07:06.560 --> 0:07:09.480 what we're seeing in the markets, given valuations coming down, 0:07:09.600 --> 0:07:14.200 given potentially companies looking for a safe exit, are are 0:07:14.200 --> 0:07:17.280 we moving into a time of big time m and A. Well, 0:07:17.280 --> 0:07:19.800 the tech bankers I talked to would love to say, sure, 0:07:19.840 --> 0:07:22.920 there's gonna be big deals and deals to get more deals, 0:07:23.200 --> 0:07:25.600 but you have to understand that Broadcom is a very 0:07:25.680 --> 0:07:29.720 unique animal. They've been searching for a big elephant acquisition 0:07:29.840 --> 0:07:33.160 for years. They hadn't done once since, So that's a 0:07:33.200 --> 0:07:36.600 company that really likes doing deals. And I wouldn't necessarily 0:07:36.640 --> 0:07:39.680 say that Broadcom's competitors are suddenly going to follow suit. 0:07:39.920 --> 0:07:42.400 But it is interesting that the tech sector has been 0:07:42.440 --> 0:07:44.320 one of the bright spots of the M and A market, 0:07:44.320 --> 0:07:48.120 which is down year over year. So software companies especially 0:07:48.160 --> 0:07:50.360 are very resilient. So I'd expect we're going to see 0:07:50.720 --> 0:07:53.000 probably some more big deals this year, which will keep 0:07:53.040 --> 0:07:58.320 me busy well. And Broadcom did want to buy Qualcom 0:07:58.360 --> 0:08:02.320 a few years back, it didn't happen under the Trump administration. Angelo, 0:08:02.480 --> 0:08:06.679 are you expecting any regulatory pushback here? I mean, listen, 0:08:06.680 --> 0:08:08.840 I think as far as this deal is concerned, the 0:08:08.840 --> 0:08:11.080 stuff we're gonna get looked at. I mean, additionally, if 0:08:11.080 --> 0:08:12.520 you would have kind of asked me, I'd say this 0:08:12.720 --> 0:08:16.080 very little little overlap between kind of you know, Broadcom 0:08:16.280 --> 0:08:18.680 and vm ware here. But at the end of the day, 0:08:18.720 --> 0:08:22.880 I mean clearly both companies operating significantly within UM you know, 0:08:22.880 --> 0:08:26.400 the data center you know group, and as a result, 0:08:26.800 --> 0:08:29.880 UM there definitely could kind of be UM some concern 0:08:29.960 --> 0:08:33.520 with how Broadcom operates kind of that VM where business 0:08:34.000 --> 0:08:37.040 along with its chip side business chip business as well 0:08:37.080 --> 0:08:39.760 as you know, Listen, I think I just to the day, Um, 0:08:39.800 --> 0:08:42.800 there's definitely geopolitical pressures going on out there. Someone w 0:08:42.920 --> 0:08:46.199 we started thinking about getting the necessary and regulatory approvals 0:08:46.400 --> 0:08:50.080 across search of certain regions like a China. Um, I'd imagine, 0:08:50.320 --> 0:08:52.520 you know, a region like that probably will drag their 0:08:52.520 --> 0:08:54.840 feet similar to what they've done in other deals. So 0:08:54.880 --> 0:08:57.200 I know Broadcome is looking for a deal to kind 0:08:57.200 --> 0:08:59.920 of get you know, to get done by the undeficial twenties. 0:09:00.200 --> 0:09:02.640 I wouldn't be surprised if that kind of drags further 0:09:02.679 --> 0:09:06.520 than that, uh, Leanna or what are your Broadcom sources 0:09:06.520 --> 0:09:09.360 saying about whether Hawk Tan will be doing more deals 0:09:09.440 --> 0:09:11.120 or is this it for a while? It's a big one, 0:09:11.280 --> 0:09:14.079 So I would say, as Angelo mentioned, there's a lot 0:09:14.080 --> 0:09:16.400 of regulatory bodies that have to weigh in on this, 0:09:16.520 --> 0:09:19.080 So I don't think Tan wants to you know, muddy 0:09:19.120 --> 0:09:21.679 the waters with more deals. Uh. They're really going to 0:09:21.760 --> 0:09:24.439 be focused on getting this one through and whatever it takes. 0:09:24.480 --> 0:09:27.880 So expect Broadcom not to do much except focus on 0:09:27.880 --> 0:09:29.800 this and then integrate it. So it could be a 0:09:29.840 --> 0:09:34.640 while before they do anything that's big. And Angelo, well, Bradley, 0:09:34.720 --> 0:09:37.280 how do I think this deal will actually impact the 0:09:37.840 --> 0:09:41.400 potentially change the cloud market? Will it make much of 0:09:41.400 --> 0:09:45.079 a change? You know, I don't know if it if 0:09:45.080 --> 0:09:47.200 it changes things, much. I think it just it just 0:09:47.240 --> 0:09:49.240 gives the broadcom a lot work power. At the end 0:09:49.240 --> 0:09:50.880 of the day, I think it gives them the ability 0:09:50.920 --> 0:09:52.920 to kind of leverage a wheel their power or a 0:09:52.960 --> 0:09:58.000 lot more than maybe some of their peers or competitors 0:09:58.000 --> 0:10:01.080 out there want them to. And you know, whether or not, 0:10:01.440 --> 0:10:04.160 you know, that ends up kind of being a sticking 0:10:04.160 --> 0:10:06.079 point when they kind of have to kind of get 0:10:06.120 --> 0:10:09.160 the regular necessary regulatory approvals, I think remains to be seen. 0:10:09.480 --> 0:10:11.440 But at the end of the day, I mean, you 0:10:11.440 --> 0:10:13.480 couldn't have an impact. Yes, so it like we will 0:10:14.720 --> 0:10:18.680 angelous you know, cfr right, Leanna Baker who helped break 0:10:18.840 --> 0:10:21.719 this story earlier this weekly on a great job. Thank you. 0:10:30.880 --> 0:10:34.280 With inflation putting pressure on just about everyone, Apple is 0:10:34.360 --> 0:10:37.480 raising salaries for workers across the US by ten percent, 0:10:37.960 --> 0:10:39.800 also in the midst of a type labor market joining 0:10:39.880 --> 0:10:42.880 US now. Bloomberg's Mark German, who of course covers Apples, 0:10:42.960 --> 0:10:48.160 So Apple raising salaries for corporate and retail employees, right, Mark, Yes, 0:10:48.240 --> 0:10:51.920 So that's right in the face of inflation other pressures globally. 0:10:52.640 --> 0:10:54.840 Obviously in the face of unionization when it comes to 0:10:54.840 --> 0:10:57.439 retail employees, Apple is doing a few things. Let's start 0:10:57.480 --> 0:11:02.600 with retail. One, they're raising the minimum salary for hourly workers. 0:11:02.640 --> 0:11:05.320 That's for retail, that's for Apple Care other hourly workers 0:11:05.600 --> 0:11:08.199 from twenty dollars per hour to twenty two dollars per hour. 0:11:08.480 --> 0:11:11.840 Now that's ten from last year, that twenty, and it's 0:11:11.960 --> 0:11:16.600 closer to the company says since in terms of corporate 0:11:16.600 --> 0:11:19.800 and more generally across Apple, they're raising their overall compensation 0:11:19.840 --> 0:11:23.640 budget for this year. So that's gonna result in some 0:11:24.080 --> 0:11:27.680 salary increases based salary increases UH in the US and 0:11:27.760 --> 0:11:31.400 globally for salaried employees, not hourly employees. And they're also 0:11:31.480 --> 0:11:34.440 bringing up raises. Typically those are done around September. The 0:11:34.440 --> 0:11:36.680 company told employees are going to bring that up to 0:11:36.800 --> 0:11:40.240 around July now for both corporate some corporate teams as 0:11:40.280 --> 0:11:44.560 well as the hourly workers. Meantime, you're also reporting that 0:11:44.640 --> 0:11:48.640 Apple is planning to keep iPhone production flat in part 0:11:48.720 --> 0:11:52.679 because of all of these macroeconomic headwinds, the pressure on consumers. 0:11:52.679 --> 0:11:55.520 What exactly do we know? Yeah, there's two ways to 0:11:55.559 --> 0:11:57.720 really look at this, right, there's the positive and there's 0:11:57.760 --> 0:12:00.360 a negative. Let's start with the positive, right. The positive 0:12:00.480 --> 0:12:03.439 is that the overall smartphone market led by Android is 0:12:03.559 --> 0:12:05.600 not a very good spot right now. Right, You're seeing 0:12:05.600 --> 0:12:09.079 those companies do job cuts and hiring slowdowns, and you're 0:12:09.080 --> 0:12:12.360 seeing people buy Android phones to smaller degrees and they 0:12:12.360 --> 0:12:14.319 were in previous years. Right. A lot of that has 0:12:14.360 --> 0:12:17.800 to do with the inflationary pressure, the war in Ukraine, 0:12:17.800 --> 0:12:21.080 and other factors globally, right, And so Apple's ability to 0:12:21.160 --> 0:12:25.400 keep units flat from two in the face of a, 0:12:25.600 --> 0:12:28.800 you know, a larger slowdown in the smartphone industry, obviously, 0:12:29.120 --> 0:12:31.199 that's a good thing for Apple that they're not guiding 0:12:31.240 --> 0:12:33.680 down in terms of their union output. Now, on the negative, 0:12:33.920 --> 0:12:36.640 Apple has a major iPhone upgrade plan for this year. 0:12:36.679 --> 0:12:40.040 That's the iPhone four teen. It'll look mostly similar to 0:12:40.080 --> 0:12:41.920 the iPhone thirteen, but it's a much bigger update than 0:12:41.920 --> 0:12:44.520 the iPhone thirteen. What's the iPhone twelve. So Apple is 0:12:44.559 --> 0:12:46.640 not going to be increasing its units even though they 0:12:46.640 --> 0:12:51.160 have this bigger handset update than they did last year. Meantime, 0:12:51.200 --> 0:12:53.240 let's talk about what else Apple has to come this year. 0:12:53.440 --> 0:12:56.120 WWDC now coming up in a couple of weeks. The 0:12:56.160 --> 0:12:59.280 official invitations have gone out. It's gonna be Christmas in 0:13:00.440 --> 0:13:03.480 they say for developers, What are you expecting to happen 0:13:03.520 --> 0:13:06.360 at this event? Yeah, so WWDC, this is going to 0:13:06.480 --> 0:13:09.280 be a pretty significant one. You're gonna see a pretty 0:13:09.320 --> 0:13:13.600 large update uh to iOS with iOS sixteen. You're gonna 0:13:13.640 --> 0:13:16.160 see changes and new apps and new designs for some 0:13:16.200 --> 0:13:19.800 apps across the board. You're gonna see big multitasking improvements 0:13:19.800 --> 0:13:22.880 for the iPad. You're gonna see some new audio messaging features. 0:13:23.360 --> 0:13:25.559 You're gonna see a new lock screen for the iPhone, 0:13:25.760 --> 0:13:28.120 and you're gonna see major updates to health on the 0:13:28.120 --> 0:13:31.120 iPhone as well as the Apple Watch. You're gonna see 0:13:31.120 --> 0:13:35.200 some smart home compatibility improvements for the Apple TV UH 0:13:35.200 --> 0:13:37.559 and the Home Pod. Like I mentioned, the iPad is 0:13:37.559 --> 0:13:39.800 gonna get a pretty big update uh, and the Mac 0:13:39.880 --> 0:13:41.480 is going to get a little bit more flavor from 0:13:41.520 --> 0:13:44.559 iOS and the iPhone interface as well. So a lot 0:13:44.600 --> 0:13:47.320 to look forward to there. I don't believe you're gonna 0:13:47.320 --> 0:13:50.600 see a full blown unveiling of the Apple Mixed reality headset. 0:13:50.640 --> 0:13:53.719 That's probably going to come later, but obviously augmented in 0:13:53.800 --> 0:13:56.280 virtual reality is gonna be on the minds of lots 0:13:56.280 --> 0:13:58.880 of developers at this year's conference, and of course in 0:13:58.920 --> 0:14:01.599 the future. When you say later, how much later? Is 0:14:01.640 --> 0:14:04.079 that something we could see this year? You know, I 0:14:04.320 --> 0:14:06.760 believe the headset. I believe it's possible we could be 0:14:06.800 --> 0:14:09.120 doing one of these shows a year from now and 0:14:09.120 --> 0:14:11.920 I could have my headset on. Obviously I would look ridiculous, 0:14:11.960 --> 0:14:13.559 But what I mean to say is I think it 0:14:13.559 --> 0:14:17.120 will be available by this time next year. Huh, Okay. 0:14:17.640 --> 0:14:20.280 And what happens come September? You know, obviously w W 0:14:20.400 --> 0:14:23.720 dcs typically where we see uh, you know, the unveiling 0:14:23.760 --> 0:14:26.920 of Apple's next generation of software. September is where we 0:14:26.960 --> 0:14:29.720 see the next generation of hardware. What are we going 0:14:29.760 --> 0:14:32.480 to see this September? Yeah, I mean, I think the 0:14:32.520 --> 0:14:35.600 pattern for this September and the fall launches this year 0:14:35.960 --> 0:14:37.880 is going to probably be quite similar to what you've 0:14:37.880 --> 0:14:40.600 seen from Apple, uh in the fall launch periods in 0:14:40.600 --> 0:14:43.920 previous years. So you could imagine that the iPhone fourteen, 0:14:44.200 --> 0:14:45.920 in the new version of the Apple Watch will be 0:14:46.000 --> 0:14:49.800 unveiled in September. I think the Apple Watch actually, interestingly, 0:14:49.960 --> 0:14:52.240 is going to be one of the bigger new pieces 0:14:52.280 --> 0:14:54.480 of tex from Apple this year for the first time. 0:14:54.520 --> 0:14:56.920 There's gonna be three new models, right, so a lot 0:14:56.960 --> 0:14:58.440 to look forward to if you're an Apple Watch fan 0:14:58.480 --> 0:15:02.840 as well. Mark German for us there, Thanks Mark as always. 0:15:03.440 --> 0:15:06.640 Coming up, Google Cloud CEO Thomas Currian with me next, 0:15:07.000 --> 0:15:25.400 Mrs Bloomberg. In the midst of a massive market downturn, 0:15:25.480 --> 0:15:28.920 Google cloud numbers were array of sunshine in Alphabet's latest 0:15:28.920 --> 0:15:32.680 earnings results. Google's cloud business growing in the quarter, though 0:15:32.680 --> 0:15:35.840 Google is still a distant third to a WS and 0:15:35.880 --> 0:15:40.240 Microsoft's Azure in the cloud infrastructure market. Joining me now 0:15:40.280 --> 0:15:42.480 to talk more about how Google will continue to scale 0:15:42.520 --> 0:15:45.960 Thomas curriean CEO of Google Cloud. Thomas, great to have 0:15:46.040 --> 0:15:48.920 you back with us. So I'm so curious what your 0:15:48.920 --> 0:15:51.920 outlook is on this market turmoil and what you're seeing 0:15:51.920 --> 0:15:54.920 in terms of demand. Are you seeing any signs of 0:15:54.960 --> 0:15:59.480 a slowdown in spending. We're seeing that the market is 0:15:59.680 --> 0:16:02.120 entering all it has some volatility in different parts of 0:16:02.120 --> 0:16:06.760 the world, but technology is seen as helping organizations, you know, 0:16:06.840 --> 0:16:11.600 address supply change shortages of customers better get online digitally, 0:16:11.640 --> 0:16:14.760 and so demand for cloud remains very strong for us. 0:16:16.000 --> 0:16:18.480 What's I take on this Broadcom vm Ware deal and 0:16:18.520 --> 0:16:22.480 how will it change or potentially reshape the cloud landscape. 0:16:23.800 --> 0:16:27.680 Broad Common VMware have both partners of Google, and we're 0:16:27.920 --> 0:16:31.120 you know, we're thrilled that they are looking at moving 0:16:31.200 --> 0:16:34.800 forward together. We think a lot of customers use a 0:16:34.880 --> 0:16:38.120 combination of VMware and Google Cloud together, and we have 0:16:38.560 --> 0:16:42.640 a strong program with them to help people my great 0:16:42.760 --> 0:16:45.760 vm O workloads the cloud. So we look forward to 0:16:45.760 --> 0:16:49.960 continuing of work with both companies. Now, Google Cloud is 0:16:50.320 --> 0:16:53.640 still growing, as I said, but you know it is 0:16:53.720 --> 0:16:57.120 third to AWS and Microsoft and there's a lot of 0:16:57.120 --> 0:16:58.720 work to do to close that gap. What is the 0:16:58.800 --> 0:17:01.520 secret weapon going to be how are you going to 0:17:01.560 --> 0:17:04.440 scale your market share and how long is that going 0:17:04.480 --> 0:17:09.240 to take to see you get closer to those other competitors. Well, 0:17:09.280 --> 0:17:12.960 we are seeing very strong demand for our products, whether 0:17:13.040 --> 0:17:16.880 that is new kinds of infrastructure we're delivering. We are 0:17:17.440 --> 0:17:21.480 now delivering infrastructure capabilities not just to run I T workloads, 0:17:21.600 --> 0:17:25.680 but telecommunications network the announcement we had with Belt Canada 0:17:25.760 --> 0:17:29.320 for example. Uh, we're seeing a lot of interest in 0:17:29.359 --> 0:17:35.439 our cybersecurity tools to protect people's networks and applications and 0:17:35.520 --> 0:17:39.040 data in the cloud. And we're seeing very very strong 0:17:39.119 --> 0:17:43.400 interests for analytics and data products which are being used. Recently, 0:17:43.400 --> 0:17:46.840 there was a case study with data about ups optimizing 0:17:46.840 --> 0:17:50.800 how they were out trucks using our capability for analytics 0:17:50.800 --> 0:17:55.440 and data. So we remain focused on providing great solutions 0:17:55.440 --> 0:18:00.439 with customers, bringing the innovation of Google to customers, and 0:18:00.560 --> 0:18:02.720 doing so at scale around the world. And if you 0:18:02.760 --> 0:18:05.360 do that well, will continue to grow and will continue 0:18:05.359 --> 0:18:07.360 to grow and gain market share as we have been 0:18:07.520 --> 0:18:11.120 these last three years. You recently did a sustainable ability 0:18:11.240 --> 0:18:15.600 survey that found that fifty of executives believe there's hypocrisy 0:18:15.640 --> 0:18:20.920 in their organization on this topic. How so no sustainability 0:18:21.560 --> 0:18:24.760 what we found from the survey Number one, it's a 0:18:24.840 --> 0:18:29.440 super important priority for eighty percent of organizations around the world, 0:18:30.680 --> 0:18:36.359 yet they have difficulty. Thirty five of organizations struggle with 0:18:36.480 --> 0:18:40.359 being able to measure their progress because the data about 0:18:40.400 --> 0:18:45.840 sustainability is not as easily measurable for a variety of reasons. 0:18:46.480 --> 0:18:50.080 And a number of organizations now need help uh to 0:18:50.280 --> 0:18:54.360 progress towards their sustainability objectives, and we at Google are 0:18:54.400 --> 0:18:58.680 helping many organizations do that. Now, how do you make 0:18:58.720 --> 0:19:01.840 sure that hypocrisy doesn't exist at Google? And this has 0:19:01.840 --> 0:19:04.600 been a criticism of of all the big cloud companies. 0:19:05.000 --> 0:19:07.880 For example, you do work with oil and gas companies, 0:19:07.920 --> 0:19:10.919 you do sell your services to those companies. Where do 0:19:10.960 --> 0:19:16.120 you draw the line? We sell our services to all 0:19:16.160 --> 0:19:22.159 in gas companies, not for exploration production, but to the 0:19:22.359 --> 0:19:25.679 environmentally clean or the green parts of these companies for 0:19:25.760 --> 0:19:28.960 work that they're doing. We're also helping all in gas 0:19:29.000 --> 0:19:33.320 companies de carbonized in a variety of different places, and 0:19:33.359 --> 0:19:36.800 we help them with things like distribution, et cetera in 0:19:36.840 --> 0:19:39.520 their retail stores and other things. But we're not doing 0:19:39.560 --> 0:19:43.800 work in the exploration production business. The second we do 0:19:44.000 --> 0:19:49.879 help many many companies in the sustainable energy business, both 0:19:49.960 --> 0:19:52.760 by providing our technology to them as well as being 0:19:52.800 --> 0:19:57.240 the largest procurer of renewable energy in the world. We 0:19:57.880 --> 0:20:01.639 power our data centers and our global network of cloud 0:20:01.680 --> 0:20:05.840 regions using green energy more and more, and we've been 0:20:05.920 --> 0:20:09.800 common neutral for fourteen years now. Even as we provide 0:20:09.840 --> 0:20:12.640 technology for many organizations around the world to run their 0:20:12.640 --> 0:20:16.920 I T in a more renewable way, does Google still 0:20:16.960 --> 0:20:21.639 have that deal with Aramco? For example, we work with 0:20:21.680 --> 0:20:24.840 the Ramicles system integration division, not with the oil and 0:20:24.880 --> 0:20:28.520 gas division, and we work with their system integration division 0:20:28.640 --> 0:20:31.440 to provide our technology to customers in different parts of 0:20:31.480 --> 0:20:33.879 the Middle East. We have said that again and again 0:20:33.880 --> 0:20:36.680 that we don't work with the oil and gas division 0:20:36.720 --> 0:20:41.000 within ARAMCO or with the system integration of for Ramco. Now, 0:20:41.200 --> 0:20:43.399 Google did recently strike a deal to buy mandy And 0:20:43.480 --> 0:20:45.880 for five point four billion dollars. I know the goal 0:20:45.960 --> 0:20:49.960 is that this will help enhance Google's cloud offerings quickly. 0:20:50.280 --> 0:20:53.200 How would you characterize the cyber threat landscape right now, 0:20:53.320 --> 0:20:56.440 especially in the midst of this ongoing war between Russia 0:20:56.760 --> 0:21:02.040 and Ukraine. Cyber threat landscape is changing in the kinds 0:21:02.080 --> 0:21:06.280 of threats, the scope of the threats, the scale of 0:21:06.320 --> 0:21:11.600 the attacks. And we at Google, along with our technology 0:21:12.080 --> 0:21:17.679 how people detect threats, protect against them, and analyze if 0:21:17.760 --> 0:21:21.479 they have been compromised. And we are seeing strong growth 0:21:21.520 --> 0:21:25.159 for our product portfolio. Chronicle simplify a lot of US 0:21:25.160 --> 0:21:31.240 cybersecurity products being adopted by regulated industries like financial institutions, 0:21:32.040 --> 0:21:37.880 commercial customers, critical infrastructure organizations like telecom, networks and utilities, 0:21:38.400 --> 0:21:42.280 as well as by government agencies. Thomas Carrian, CEO of 0:21:42.560 --> 0:21:53.879 Google Cloud, thank you for joining us today. Welcome back 0:21:53.880 --> 0:21:57.119 to Boner Technology. Emily Chang in San Francisco. Well venture 0:21:57.119 --> 0:22:00.399 capital firms like Sequoya and y combinator have been sharing 0:22:00.440 --> 0:22:03.919 their playbooks on how to weather stormy market conditions, and 0:22:03.960 --> 0:22:07.040 as startups begin to focus on the fundamentals once again, 0:22:07.080 --> 0:22:11.600 another key element is ensuring fair representation on their cap tables. 0:22:11.800 --> 0:22:14.320 My next guests found a way to raise their latest 0:22:14.400 --> 0:22:18.840 round from all female investors, and they're here to share 0:22:18.880 --> 0:22:21.200 their secret. I m joined now by Heather Fernandez, the 0:22:21.240 --> 0:22:23.960 CEO and co founder of Solve, as well as Karen Northman, 0:22:24.400 --> 0:22:27.520 managing partner at Upfront Ventures and a founding member of 0:22:27.680 --> 0:22:29.720 All Rays. Karen had they're great to have both of 0:22:29.760 --> 0:22:31.960 you back here on the show. So you managed to 0:22:32.000 --> 0:22:33.919