Technology Can Help or Hurt – Part 4: Social Media Giants’ Missteps Alter History, Spur Regulation

Mark Twain’s 1897 quote had it right: “Truth is stranger than fiction, but it is because Fiction is obliged to stick to possibilities; Truth isn’t.” One possible Truth in the current fracas involving Russians, Trump’s campaign team for the 2016 presidential election, and social network companies including Facebook, Google, and Twitter is that this is an early example of wars that are fought by hackers and the Internet rather than soldiers and guns. Numerous semi-fiction books could be written or movies created about this craziness. One possible plot is that the Russians knew how unusual (AKA weird) Donald Trump is, and preferred him to Hillary Clinton as president because they could exploit that unusualness (AKA weirdness). A bunch of congresspeople are calling for regulation of these giant Internet-based companies. So are the media, who are far more regulated than Facebook, Google, and Twitter. These are crazy times, and the Russians and other enemy nations must be enjoying all the gyrations that the US is going through.

Can Women Write Code As Well as Men?

Anyone working in Silicon Valley (or reading local newspapers) cannot fail to be personally affected by issues of workplace diversity (at least vicariously). (Actually, anyone reading the Wall Street Journal these days could not avoid seeing the variety of prose on this topic from its chorus of reporters and columnists.) And during the last couple of weeks s/he could scarcely avoid hearing about the 10-page memo written by Google’s James Damore, his subsequent firing, and the furor both locally and nationally. There is a saying in Japanese that “the nail that sticks up is the one that gets pounded down”, and we are sure that he feels very pounded down these days. And his subsequent article published in the Wall Street Journal (in a nice touch the accompanying picture shows him wearing a T-shirt that says “Goolag”) has doubtlessly made Google management feel pounded down, too. (This appears to add insult to the injury already facing Google because the U.S. Department of Labor is already claiming that Google systematically pays women less than men.)

It is no secret that the tech industry in general employs a majority of white or Asian (mainly Indian) men, particularly in technical and leadership roles, which means that Google is no better or worse than other giant tech companies. But when one digs a bit deeper, it turns out that Damore’s belief that women are less capable at writing code than men is incorrect because Indian women CAN code too.

The Wall Street Journal’s Andy Kessler points out that there is limited proof that Google’s mandatory “Unconscious Bias” training has any merit, because of the fallibility of the numerous studies that have supported its inclusion.

Actually, it is meaningless to give OVERALL statistics about percents of male/female or race without also putting them in the context of compensation or managerial level or similar measure, as we have tried to do with the illustration above.

The Argy-Bargy About H-1B Visas is All About Dollars … At Tech Companies AND Universities

We at Technology Bloopers are not big fans of President Trump, but his administration’s putting pressure on tech companies’ hiring software engineers from India and China to replace Americans does seem to be consonant with his pre-election promises.

But apparently it is even worse than that. We heard a couple of days ago about one local company that not only hired a bunch of Indian H1B visa-holders, fired their American staff, and replaced them with these imported folks … after they were trained by the Americans. And this noxious practice has apparently been going on for some time, according to the Stateline folks at The Pew Charitable Trusts.

Three months of coder school is not much training compared with that of the better-trained—often in American universities—and more-experienced visa-holders. But why are these American universities welcoming these foreign students? It’s because those students come bearing big funds for their education. (At state universities, it is simply that the international students must pay the same (higher) prices as out-of-state American students.) We have heard that among some of these students it is said that PhD stands for “Parents have Dough”. Interestingly, those international students are more prone to cheat on their exams. Hmmm … does that mean that their future code will be less trustworthy than that of Americans?

We wonder why the big Silicon Valley tech companies have not done a better job on their own of training software engineers. Couldn’t they be hiring “junior” software engineers from the coder schools and boosting their capabilities with on-the-job training. We suspect one reason is that it is more expensive to do that than to hire foreign help. And more time-consuming. And another reason may be that they didn’t do a good job of forecasting their growth and concomitant demand for those software engineers. Maybe the current visa flap will motivate them.

But it may not be the fault of these companies. Americans may too lazy, or too afraid to be “uncool”, to study STEM (Science/Technology/Engineering/Mathematics) courses so there is not enough local talent to fill the needs of Silicon Valley. Graduates with strong STEM knowledge are polar opposites to “art history majors” , a term used derogatorily to connote enjoyable-but-low-paying jobs.

YouTube Takes Bigger Slice of Overall Television Pie

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Google is certainly getting a lot out of the $1.76 billion they spent buying YouTube almost exactly 10 years ago today. As of early 2013 YouTube was experiencing one billion unique viiewes/visitors every month, nearly one out of every two people on the Internet, use it for myriad purposes. Anyone at all can upload or watch videos of cats or dancing babies, and Google benefits because it can charge advertisers to put ads adjacent to those videos.

But either Google had great vision a decade ago or they have more recently realized that they have a great medium, arguably better than conventional television. However, a recent study by Nielsen and Google shows that YouTube and conventional (“linear”) TV may be more complementary than competitive. People are watching TV on YouTube and they are watching YouTube on their TVs, so the gap between the two media is shrinking. In fact, it is shrinking so much that Google has just signed up CBS for its imminent web TV service. And, notwithstanding some folks’ criticisms of CBS, its leader seems to be pretty savvy.

Is Amazon the New Apple?

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Will Apple topple from its perch as the world’s most valuable company? The stock market didn’t reflect Apple’s declining smartphone sales far enough ahead, which led to a drop in share price when year-over-year Q1 iPhone sales declined nearly 15%. And while the overall market grew about 4%, leader Samsung stayed flat, and a handful of Chinese companies rose ominously. Apple’s reliance on the iPhone for growth has become a weakness.

But there is another important consequence. If you look at total market capitalization (total shares times share price), Apple is declining rapidly and Amazon is rising rapidly. For the last 3 calendar quarters, the top 5 companies in the world have included only Apple, Alphabet, Microsoft, Amazon, Berkshire Hathaway, and Exxon Mobil, and the top 3 were only Apple, Alphabet, and Microsoft. But Apple’s market cap(italization) in 1Q2015 was more than double ANY other company, while in 1Q2016 there were 7 other companies with market caps over half of Apple’s. But In 1Q2015 Amazon was not in the top 10. It was #10 in 3Q2015, and #4 in 1Q2016 (getting profitable helped a lot). And Amazon is not dependent on one product line.