Amazon's Sunday Deliveries: Bloomberg West (11/11)

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Nov. 11 (Bloomberg) -- Full episode of "Bloomberg West." Guests include Wired's Joe Brown, Gogo CEO Michael Small, Buzzient CEO Timothy Jones, Hulu's Charlotte Koh and Egnyte co-founder and CEO Vineet Jain. (Source: Bloomberg)

? live from san francisco, welcome to the late edition of "bloomberg west" where we cover global technologies and companies that are reshaping our world.

Our focus is on innovation, technology and the future of business.

Let's get straight to the rundown.

Apple is working on two new i phone screen sizes, both bigger than the current screen and both with that glass that curves at the edges.

Could we see a first step toward a flexible iphone?

You can't get your regular mail on sundays but starting this week, you might be able to get your amazon packages.

The e commerce giant is adding sunday delivery in new york and l.a., with more cities to follow.

And now that you can use your gadgets from takeoff to landing on some airlines, could there be more?

Apple's newest iphones came out less than two months ago but they're hard at work on a redesign with the line.

Apple is working on iphones with bigger, curveyer screens.

This comes after samsung released a curved screen phone, the gam asy round, lafment -- the galaxy round, last month.

Apple is also working on enhanced senses that are can distinguish between light and heavy touches so that feature may not be ready in time for the next iphone.

Our seniors west coast correspondent is in l.a. with more.

What exactly with you tell us about apple's plans here?

Clearly it's early.

But this is some great reporting by bloomberg news and i think it tells you a couple of things.

Number one, you highlighted that the competition, samsung's one example, l.g. would be another, have already moved into this form factor, a curved device.

It's hard not to think that apple would at least be toig around with this.

Seeing the pros and cons of moving in this direction.

Some have talked about it may be reducing the amount of glare when you're outside.

Why not try that out?

But i think the other part of this story is we're still waiting for that next big thing from apple.

Maybe that's a wareble device, maybe that's a watch.

You wonder if curved technology, curved glass, all these things play into.

That i think that's why people have been excited about this bloomberg news story and have been talking about it all day.

How would that affect sales next year?

Well, it is pretty remarkable to look at how powerful financially the iphone has been.

A lot of people realize that already but you're talking about a device roughly 150 million that have been sold in 2013, generating more than $90 billion in revenue.

And the well-known analyst who covers apple for piper jaffry is looking ahead to 175 million deslices -- devices being sold in 2014, generating more than $100 billion in revenue for this company.

So that clearly tells you this is a premium-priced device.

New features, enhancements, new bells and whistles so important to keep that iphone train moving on time.

All right.

Our senior west coast correspondent, thank you.

So, will these new iphone features really challenge samsung?

And will this help apple's market share in asia?

Joe brown is in new york, the editor of "wired" there and joins me now from new york itself.

What's your take on this?

Well, i think there's probably a big room in the basement of their headquarters that has thousands of different-shaped iphones, big phones, little phones, anything you can imagine.

Apple's an r yabds d company.

They do a lot of work trying to figure out what the next big thing will be and next year is what i call the sort of off the main cycle of iphones where you start seeing different form factors like the 5 and the 5-s are very similar.

The iphone 6 will probably look different.

I wonder if it's going to be a curved glass, two different-sized phones since they put a lot of work on getting everything the same screened size.

What would the benefits of curved glass be?

What make it better than flat glass?

I don't think there is one personally but i think a lot of people really enjoy the way it conforms to your face a little bit more.

There's also the ability to have less glare when you're watching video.

But it also kind of bulges in pocket.

When you look at phones with the curved screens and the nexus 5 that came out a little bit ago, you see phones that don't fit as nicely in your pocket or a case.

You made the point, you know, that am has tried very hard to stick to one screen size.

So, what about -- a lot of -- there's been a lot of people out there asking for a larger screen size.

People in china apparently want larger screen sizes.

Is this a direction that apple should go in?

Well, there's no doubt that tablets are really, really popular.

Despite everybody making fun of the galaxy note when it came out they sold a half a million of them in no time flat flat.

Apple would be foolish not to pursue a larger phone, especially if they're looking to get into the chinese market.

The question is whether adding that skew is going to dilute their penetration in america and whether it's going to play well with the u.s. market.

That traditionally doesn't love such a big phone.

Do you see apple introducing two different screen sizes, though?

I mean, that would completely change the way we think about an iphone.

No.

i don't. but i've been wrong before and i might be wrong again.

One thing they could do to maybe make that blow a little less harsh is to have them be the same aspect ratio.

So they would actually be able to display the same style of images.

And that would make it so that it wouldn't be such a heavy lift on the app developers' end.

Would you say that this actually could potentially make sense or is this just apple experimenting and potentially just chasing samsung?

I think this is apple experimenting.

I don't think we're going to see two different phone sizes next year.

That's just my gut.

I remember two years ago when everybody was reporting about the flat screen apple television that somebody spotted in the basement of apple and they were totally 100% sure it was going to be on sale that christmas and no sign of that yet.

But what about china?

This is the biggest smartphone market in the world, still a lot of potential there.

Apple's building more stores there.

What can apple do to catch up in china?

It's a really -- if not add larger screens.

They tried to make the customization market happen in china with the 5-c and that didn't really work out.

The 5-c's been disappointing.

People have gone toward the 5-s and like jon was saying, premium is where apple needs to focus its bullets.

I really like the rumor of the touch sensitivity sensor.

One of the things that am does every single product iteration is add a new style of sensor like the motion sensor in the new 5-s. i would see that as a more likely add-on than two different screen sizes.

Could a curved screen be a step toward a flexible screen?

Probably not.

I would have to say.

Because that's a material science question, the flexibility screen.

A curved screen is a different shape of screen.

You can make them out of similar materials, the gorilla glass that we're seeinging right now.

A flexible screen, i think that's a whole next level.

All right.

What do you know about flexible screens so far?

I know that phillips tried one about five or seven years ago.

They had a prototype that i saw and i still haven't seen a physical product of that.

So i think it's a very, very tough lift, especially to get the kind of resolution that people are used to seeing on their smartphones right now.

Remember people complain if it's not a high enough quality receipt in a display.

So actually thinking about trying to take that level of fidelity that people expect and move it toward a completely different medium, it's a really, really heavy lift.

All right.

Joe brown, thanks so much for joining us on "bloomberg west." well, some day -- sunday, the day of rest, not anymore.

Amazon prime is teaming up with the u.s. postal service to provide sunday deliveries.

That is next on "bloomberg west." ? this is "bloomberg west." on bloomberg television and radio, streaming on your phone, tablet and bloomberg.com.

We are seeing more details about the plans for apple's new spaceship-like headquarters scheduled to be built.

The drawing shows everything from the lobby to the three-level cafeteria, which includes huge columns and floor-to-ceiling windows.

We also get a glimpse at the corporate trend centery employees, who commute on apple's corporate bus fleet, will arrive.

The new headquarters is slated for completion in 2016. amazon will start offering sunday deliveries in new york and los angeles this week with plans to expand sunday service to other cities next year.

Am zeens partnering with the u.s. postal service on sunday deliveries and it comes at a time when amazon's competitors are working to offer faster delivery times as well.

Our editor at large is here with more in today's drill bit.

Amazon and the postal service have apparently been working together, right?

Apparently.

They said already this thing is available in los angeles and new york.

If you're amazon and you see your stock chart go up like crazy based not on profits, because amazon barely has them, but based on revenues, what do you do to get more revenues?

You add another day to the week.

You can't get eight days of the week when you're at six so they've created another day for amazon to sell and it's kind of an amazing thing.

When we look -- it also gives them quite an edge on the competition, if no one else is offering sunday delivery, right?

Indeed.

It's in los angeles and new york.

They say next year it's going to go to dallas, houston, new orleans, and phoenix.

They're saying it's only for their amazon prime customers.

The reason they've got that leverage over their competitors is because they spend so much money on postage.

In this last quarter alone, this is the third quarter, it's not as big as their giant fourth quarter, they had over $1.5 billion in sales in shipping costs alone.

Think of that.

$1.5 billion in shipping.

A lot of that money going to the u.s. postal service, not just for the things that start with usps, even though they're using fedex and u.p.s. at the fulfillment center door, that last mile delivery often happens at the u.s. postal service.

Working with the u.s. postal service to be more innovative.

What does the post office have to say about this?

Aren't they cutting back?

The post office is trying to be smart about where they're cutting back and where they're adding services.

At least that's what they say.

Our colleagues talked to the u.s. post master general last week.

Listen to what he had to say.

I'll level with you there.

People think we should move this five-day delivery but here's a proposal.

Five-day mail delivery, six-day package delivery and in some cases in the not so distant future, we'll be delivering a lot of zip codes seven days a week from a package standpoint.

That's the way the world is working.

You can't hang onto things that don't make sense.

I see the resemblance.

I like it.

It would be a lovely place.

I think you could do a lot of things.

There's a lot of turnover at the post office.

, no it's interesting to hear them actually acknowledge the world that we live in but it's also interesting to see amazon go after the seventh day.

What does it mean?

Because they also have a really extensive relationship with u.p.s., they work with u.p.s. as well.

They're going to work with all of these guys.

They get a lot of revenue from shipping.

It's not just that they're spending the money on shipping, of course people pay for packages and it's a gig thing for them.

Despite all the revenue they get for shipping in the last quarter, their losses from shipping -- it's fundamentally a loss for them.

They think that they're willing to lose money in shipping, $1.5 in the last quarter, just to get more revenues from selling products.

What about the cities where this is rolling out first.

L.a., new york, what does that tell but amazon's plans?

They're obviously going for places where the largest populations are concentrated around small areas.

These are areas that won't be affected by blue laws and things that keep them from selling.

Whether it's west virginia michigan or northern new jersey, they're going after the places where they can actually make these deliveries happen.

But it also shows that they're really pushing in the u.s. -- interestingly, international has declined as a percentage of their business.

You'd think where there's more room for this growth is internationally, but internationaly the percentage of revenues has fallen in each of the last three years for am zofpblet you can see with this push that could happen even more so in the future.

Maybe it's because companies like ali baseballa are stealing their thundser.

Maybe it's because you andry spending so much on amazon.

We are spending a lot.

Thank you.

One of yahoo!'s senior expects in hollywood is leaving the company.

Aaron mcpherson who was lead -- is joining makers studio.

A fast-growing video network on youtube.

My partner is back with more on that and this is interesting given that aaron mcpherson went over there to help build out the video content that marisa mayer has made such a priority.

Interesting that she's leaving now at such a critical time.

Yeah.

I think that's one of the things that aaron is well known for.

Having some pretty strong relationships around town with some constant creators over the last couple of years.

People have probably heard about this yahoo!

Original burning love which is produced by ben stiller's production company.

Good relationship with them.

A good relationship with jack black who did an original for yahoo!. john stamos has an original foria d, -- yahoo!. and the issue of where this fits, video, on the yahoo!

Priority list, you're absolutely right.

Marisa mayer has talked about video being important but they're all out of things that have been important.

There's buzz about a potential senior executive coming into yahoo!. you're talking about someone in aaron who hases been there since 2007 and maybe it was time to make a move.

What do we know about maker?

Tell us about that.

I think maker's a great example of the new hollywood segments we do on this show.

Maker in a lot of ways is trying to level the playing field for content creators.

You take advantage of the production services and studios that they've made available to these people to make she's shows for youtube.

I think though there is still this question about financially how maker does long-term.

Because we know that youtube takes a good chunk of the advertising money that is generated from all of that content, so that leaves some ad money left for maker and for the content creators and when you're building out these studios and building out these facilities, coupled with having to share the revenue pie if a -- pie a few different ways, i think that's one of the key questions going forward for that business.

Thank you.

Well, thanks to new f.a.a. guidelines, you can now use your gadgets through all phases of flight on some airlines.

But could texting and making calls while flying be ready for takeoff too?

That's next.

? welcome back.

This is "bloomberg west." three tesla model s sedans have caught on fire in recent weeks and as they investigate the most recent fire in tennessee, one former celebrity owner is giving his thoughts on the company.

Actor george clooney tells a magazine, i had a tesla, i was one of the first with as at the lafment i think i was like number five on the list but i'm telling you, i've been ott the side of the road for a while in that thing.

I said to them, look, why am i always stuck on the side of the expletive road.

Make it work one way or another.

Tesla did not return our calls for comment.

The company insists the fires are isolated incidents and have nothing to do with the overall safety of the car.

Well, inflight wireless provider is prepared to let the f.a.a. ease rules on in-flight electronics use but are we ready for the shift?

I spoke with gogo's c.e.o. earlier and asked him how the service works.

Yes, it's remarkably similar.

You need to download our app, once you have the app, you make and receive calls or texts from the air just as you would on the ground.

So, tell me about the technology that actually goes into this.

I understand that you are using ground technology to make this happen, right?

Yeah.

It actually takes -- first and foremost our ground breaking air-to-ground network that we put in place a few years ago and that's the basis for the communication and then we just did the networking so a wi-fi hot spot looks like it's just another little cellular company, part of the network on the ground.

So you can communicate with any smartphone, cell phone anywhere on the face of the globe from a plane.

And what is the speed?

Should we assume it's going to be about the same speed as if we were on the ground?

Nothing is different?

Yeah.

It's amazing.

Texting, it goes as fast as on the ground.

It's virtually instantaneous.

And the voice quality is good.

Of course, we'll have to wait to see whether the commercial airlines of the united states want people to talk on planes.

That will be a source of big debate.

But it is certainly technically possible.

We know how to do it today.

Are any airlines allowing this right now?

No, not to my knowledge.

Not in the united states.

Overseas it's often allowed.

But as we speak today, we have many of our business jet customers using this service, both for the texting and the talking.

Ok.

now, some critics say that your service is actually slower than some of your competitors because you rely on a ground network.

How would you respond to that?

Yeah, now, we get the most bandwidth to planes of anybody in the industry, anybody in the world.

We're the leader at doing that.

What we do today with air-to-ground is the most capable, we're also augments that with satellite capabilities.

Just a few weeks ago we announced what we call g.t.o. or ground-to-orbit which combines a satellite solution with our air-to-ground and we think that's going to deliver 20 times the speed of what we're seeing today and we think it's twice as fast as what anybody else will have in the industry.

Let's talk about the satellite technology that you're developing because i understand you are working on stuff to better surf overseas flights.

What can you tell us about that?

Yeah, so, we've done two things.

One, we are -- have developed a global solution and that is going to be deployed on the two carriers, we've announced, our airline partners that we've announced, delta and japan airlines, and that will work virtually anywhere on the globe.

And that's one solution.

In addition, this other solution, which we call g.t.o., will augment the speed of our u.s. network which runs from three to 10 megabits per second today and it's going to take it up to 70 megabits a second.

Your services are used on all domestic air trend and virgin america flights i believe but you're still only on select fight flights with other carriers.

What's the hold justify?

-- holdup?

We're on 100% of delta at this stage.

All their domestic mainline fleet and regional jets.

We're just about done installing american airlines.

Only a few domestic planes left to go.

All of u.s. airways on domestic flights are done.

We're darn near the end of doing all the install.

So all the airlines that have made the wise decision to partner with us, we've pretty much completed the installs.

That was the president and c.e.o. of gogo.

We'll be back with more "bloomberg west" after this quick break.

? you're watching "bloomberg west." where we focus on tech nognoling and the future of business --ing at the technology and the fewer it -- technology and the future of business.

Fab.com has another top executive.

Fab is realigning its business to focus on traditional ecommerce rather than flash sales.

Last month the company cut about 20% of its work force and its co-founder also left.

A number of people who preordered the new xbox at target have received the consoles nearly two weeks ahead of the official release date.

After the users starting posting video and pictures of the new console, microsoft removed their ability to use the game's live features until its officially released on november 22. microsoft blames the retailer for the mts take.

And a demo version of an ipad has reportedly exploded at a store in australia.

With sparks flying out of the charger area.

This according to the "sydney daily telegraph." no word on what model of ipad it was.

The store was evacuated but there were no injuries.

Apple has not returned bloomberg west's d calls for comment.

Supertyphoon haiyan, the largest storm to hit the philippines, may have killed as many as 10,000 people.

That's according to philippine authorities cited by the red cross.

But many parts of the country are still out of contact.

So how are rescuers using social media to find and help survivors?

My partner joins me now with more.

Yeah.

Agencies like the united nations are using twitter and facebook posts to figure out where problems are occurring and where they should send rescue crews right now.

But how to determine whether the information is accurate or not is very important.

Let's bring in timothy jones.

Tim, first of all, why is it so important to spend time assessing these tweets and facebook posts when probably everyone needs some help?

Hey.

First of all, condolences out to all of the folks who have been affected by this tragedy.

And i wanted to say also, on veterans day i think it's appropriate to recognize the fact that the united states marine corps is already onsite trying to help out some of the folks.

To the point of checking the veracity of some of the data, one of the things is the signal-to-noise ratio program.

In capturing all of this information, one of the things we always advocate is having ways to automatically and intelligently filter the information so you can get true, solid signals from the torrent of information that's probably flooding in right now.

So how do you do that?

On some level gest i guess that's what we all do with all information.

But how did you figure out what matters and especially in social media, what's true?

That's a great question.

So one of the things you've seen a lot of organizations start with is what we refer to as the social media command center approach.

Or what i refer to as the social media intern approach where you basically have people stare at screens and they try to manually assess the validity or tweets or the value of tweets.

One of the things we learned years ago and a lot of this was driven by one of our largest customers, was that that doesn't scale.

When you get to environments where you have tens of thousands, maybe hundreds of thousands or millions of tweet, you need ways to automate.

That there's a whole range of technologies in a domain which is referred to as sentiment anal sills.

Whereby you can use machine learning approaches to automatically score or evaluate the veracity or the relevance of various tweets or facebook postings.

And -- i'm going to interrupt you.

I want to talk about that.

Sentiment analysis.

Machine learn something basically sort of a-b testing, right?

If it's this, it's that.

If it quacks it's it's a duck, if it barks it's a dog.

Yeah, yeah.

One of the things we're very, very clear about is there's a huge difference between what i'd like to refer to as let's say current state-of-the-art machine learning and artificial intelligence.

We're not talking about trying to replicate how the human brain work.

But rather there are ways that you can use methods today to very quickly assess the significance or relevance of a tweet or posting to a particular subject, so, hey, corey mentions quack and corey, is you know, a bird hunter or a bird lover so this is a relevant tweet.

And also tonality.

Did he say something positive or negative about a duck quacking.

That's what we mean about that.

By automating the collection of -- the collection of tweets using sentiment analysis tools today, you can reduce the -- in many ways reduce the noise and hone in on the true signals and then you allow human beings to actually determine whether or not the information can be acted upon.

So that's what we mean about using sentiment analysis tools.

Along with human beings in the process.

I've got to imagine that the location data and g.p.s. data that's incorporated in so many tweets and posts has got to be a real big help in this situation.

Yeah.

These have come a long way.

I would -- let me put it this way.

I think there have been huge advances in the level of geo-location information which is attached.

What we're cautious about is a garbage-in, garbage-out program.

I can go into facebook and twitter and put a location.

I can say i'm in pars and thenky actually tweet from another location.

Now, my tweet may actually show up through the a.p.i. of twitter as being in the actual remote location but my profile will say paris.

So where am i really?

There are a number of issues still to be resolved around geolocation.

This is where we've been working more closely with telecom producers -- providers because at the end of the day, if i'm using twitter or facebook on a mobile channel, the best information about where i really am is actually on that phone.

And one of the things we expect to see in the future are stronger, let's call them social e-911 services made available by the telco carriers so they can very accurately identify the location of someone who is on social media.

Interesting stuff and a horrible story.

Thank you very much.

My pleasure.

Thank you.

We'll be right back with more of "bloomberg west" after this quick break.

? i'm already late for a meeting.

There's my card.

That was a clip from hulu's newest original series "the wrong mans." our senior web coast correspondent is here with more on that.

It's a comedy about two office workers caught up in a deadly criminal conspiracy.

Some call it a cross between "24 dwgs "and "the odd couple." so, how did this show come to hulu?

The show came about as a result of our relationship with the bbc.

Week of been extremely successful in licensing their shows and we decided on certain shows we wanted to get involved in an earlier stage.

When they invited us to co-produce the show with them, we were really, really enthusiastic about the opportunity.

It is a fun, interesting series.

You've done a lot of green lighting over the last couple of years of different types of shows.

I mean, i think of "a day in the life," "the awesomes." when you're picking a show, what is it that you're looking for?

I think the most important thing we're looking for is a distinct creative voice.

So all those shows you just mentioned and then "the wrong mans" included, i think they're all trying to do something new in the television space that's smart and that also crosses different genres.

So we're really looking for that show that's going to have a distinctive flavor and personality, that's going to thrive in an on-demand service.

Do you feel like comedy is really where hulu feels, you know, feels that there's definitely a comedy theme with hulu original shows.

I would say it's still early in our evolution and we have focused on comedy in these first couple of years because they're a manageable scope and scale of production.

I definitely think our missions going forward will be to broaden the scope into hour-dramas and other types of programming so we've been very lucky with comedy from other con tebt partners as well and it proves that that genre on the service, but i'd say the ambition going forward is definitely to do more comedies and also more of other genres.

Interesting.

There was a headline a few months ago about hulu possibly rolling up in the neighborhood of 40 originals over a two-year stretch.

Does that make you say, we have a lorge of originals to find or is it the opposite, that you've got a lot of good shows and it can be hard to find a home for them?

Well, i think when we talk about originals broadly, that umbrella includes shows that we license as well as the ones that we do in-house.

And instead of uh-oh i think we're very enthusiastic about the possibility of bringing a greater variety of television to our audience and into growing that audience by offering them more shows.

The ambition there too is also to figure out what can we do to build the best personality possible for hulu overall and service our audiences with very tailored content that feels really unique and feels like a destination for them.

So i do think that it's an ambitious goal but it's also one that is achievable and really energizes the company overall.

And quickly before we go, hulu-plus subscribers get all six episodes of "the wrong mans" right away.

We talk about binge viewing.

Is the goal to make, you know, as many originals as possible available for the binge viewing folks or actually does it really depend on the series?

Thus far we've customized the release pattern with the show.

"the wrong mans" is uniquely optimized to be watched in a bingeble way because the plotting is heavily serialized.

They wanted to bring the sophisticated story telling of a "24" into a comedy genre.

So i think it really is great to have all six up on the service today because it's the kind of story too where you fall in love with the characters and you won't want to stop watching.

At this point it's a title-by-title thing and i think we try to do it in a way that optimizes for each show.

We'll keep watching.

Thanks for your time.

The head of development for hulu originals and we'll send it back to you.

Thank you.

One quick programming note, we are looking for entrepreneurs who would like advice from yahoo!

Chairman on building or launching a startup.

Just submit a short power point pitch, fewer than 10 slides, that includes background information on your team, your vision, the problem that you're trying to solve, submit it to facebook.com/bloombergwest.

They'll review your pitches and we may feature some right here on "bloomberg west." still to come, some are calling it the ultimate pimp my ride experience.

We will check out the business of bullet-proofing cars next on "bloomberg west." ? this is "bloomberg west." i'm emily chang.

Revelations about government surveillance programs have left some of the most well-known tech companies trying to reashaur -- reassure their users that their information is not being shared but these concerns could be hurting american companies as they try to expand globally.

Corey johnson back now to explain.

Yeah.

A lot of fear out there.

Fear of storing data in the cloud, for example.

Companies are backing up their storage.

These kind of concerns are hurting the industry.

As much as $180 billion in 2016. is there a way to build a prism-proof cloud?

A cloud storage provider, you have a new service, you say it's prism-proof?

Absolutely.

How's that work?

If you look at the core problem of the concern companies have, it's about -- do i move my data to the cloud and expose it to snooping, whether it's n.s.a. or someone else?

So what if they could give you access without moving your data in the cloud?

And thereby making it "prism"-proof?

Had isn't the whole point of moving that to the cloud, not having the data yourself, so you're truly scale snble indeed.

But one of the things which is being ignored in all the conversation about the cloud is not all sides are created equal.

Some of the data is adaptable to the cloud and you can move that to the cloud and relieve all the hardware to store it.

But there's a class of data which is highly sensitive, it's compliant data, that you absolutely don't want to move to the cloud.

And now with the noise on n.s.a., the sensitivity and concern about moving the data to the cloud is actually heightened.

So can you have one solution that can address all my problems without the user really care being where the file is being served from?

You're letting the computing app on the cloud, the files are so encrypted that they can't be unencrypted?

Exactly.

The cloud becomes the access layer but the data is stored in the control.

Some it could be in the cloud and some behind the fire walls.

Is the notion that you keep enough of it behind so you don't have to keep a full set of data, just the key to the data, such that it's unencreptble?

Un-unencreptble?

It can't be reencrypted?

You're absolutely hitting the nail right on the head.

If you really look at a company and let's say they have 500 data bytes of data, we know that data is being contained for archives, can i encrypt it and park it in the cloud?

Indeed i can but if you park it in the cloud and you get subpoenaed, you have to turn that over along with the key to the feds.

So you have to decide, what is that sliver of data which is absolutely critical that you don't want to open up to nobody, that you still want to retain and keep it?

And that's how you still become preventing the "prism" and muscular-related problems.

I've been reading about amazon web s they have a big conversation coming up that i'm going to attend.

I'm wondering whether you look at the way that amazon web services is -- has transformed the cloud business, how do you think of their business?

Amazon has done a fantastic job of taking away the owners of you creating your own storage and in my point of view, it's a great solution for if you're an early-stage startup which doesn't want to build their entire stack and data center, you can leverage amazon.

If you're a big company and you need access capacity, especially around christmas, you have a lot of shopping traffic that you would like to offload onto excess capacity, it's a great solution.

I think of all the startups i remember from the dot-com era that had to spend vast fortunes on basic storage and databases and ways to process things.

You don't have to do that now.

They can focus on their idea and their marketing, not their i.t. absolutely true.

But you have to look at the cost-benefit aspect from an inflexion point on how big you are.

At an early stage, it makes perfect sense.

If you become massive, then you have to see, do you get the volume, the advantage of the pricing volume that amazon is willing to give you?

And does it still make exick sense?

So we -- economic sentence?

So we haven't used amazon for that reason, we were not getting the benefits from a pricing point of view until recently.

And in fact we're using one of the amazon competitors to leverage some of the storage in the cloud.

What is it that they're not getting right then if you're using a competitor instead of amazon?

I wouldn't say it's at zaun not getting it right, it's a choice between a vs.

B and at the volume we are playing at, a few cents being shaved off storage per month can make a massive difference.

Very interesting stuff.

I appreciate your time.

Thanks.

Technology isn't just being used to protect us in the virtual world.

It is also being used to improve our physical security.

A good example of this is bullet-proof cars which are becoming the latest craze among the ultrawealthy.

One armor car shop in san antonio, texas, has the market cornered.

Check it out.

If you're rich and need protection, you're going to come to us.

To arm your vehicle.

We are the largest supplier of private armored vehicles in the world.

We do a low-level-type protection which will provide protection against hands gun-type weapons and we have a higher level of protection that will provide protection against a.k.-47's, m-16's, 30le-type round ammunition.

We have a wide variety of customers that require armored vehicles.

Politicians, celebrities, all the way to businessmen in west africa.

Outside of the u.s., our customers are more targeted because of the fear of kidnapping for ransom or even assassination.

This is a mercedes g-wagon.

This vehicle most likely is going to west africa.

Probably an oil company executive that needs protection over there.

So this vehicle's in the middle of the process.

We use a lightweight material in the doors, we use ballistic steel everywhere else on the inside and we replace the glass with armored glass.

Base commits being rebuild from the inside -- basically it's being rebuilt from the inside.

We also add james bond-type accessories.

We can have smoke coming out of the back of the vehicle.

It creates like a smoke screen.

And if anybody tries to touch your door handle, it's going to give me an electric shock that prevents anybody from opening your vehicle and pulling you out.

The actual cost of the armoring materials is quite high.

So our profits are usually pretty small.

We're doing well because of the high demand.

People are coming to us more often because of a perceived threat against them.

The future of this business is really here in the united states.

The demand for armored vehicles is booming.

Wow.

That was trent kimbell, c.e.o. of the texas armoring corporation.

And now it is time for the bite where we focus on one number that tells a whole lot.

Corey isritis here.

What do you got?

That was a depressing story.

Yes.

695,205 dollars.

That is the amazon.com spending on average for shipping every hour of the last year.

Spending over a half million dollars every hour on shipping.

That is incredible.

Every hour.

Yeah.

Big stuff.

And it's getting bigger all the time.

People need their stuff on time, don't they?

Well, i was thinking, you know, for the really special stuff, i might use the armored car.

But i'm going to be using amazon for everything else.

I was wondering if -- for corey and emily's gifts, i'll use amazon.

We were thinking of investing in one of those so your fans keep a good distance.

Yeah.

All the fans of all the companies i've criticized over the last three years.

It's only a matter of time.

Jon, you probably need one, though.

I'll take one, i'll take one.

All right.

Thank you, guys, and thank you all for watching this edition of "bloomberg west." we will see you back here tomorrow.

? . .

This text has been automatically generated. It may not be 100% accurate.

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