Live from pier 3 in san francisco, welcome to "bloomberg west" where we cover all the global technology and media companies that are reshaping our world.
I'm emily chang.
Our focus is on technology, innovation, and the future of business.
Let's get straight to the rundown.
Salesforce ceo makes a donation to sever cisco school district.
Find out why and how it plays into his business strategy and our exclusive interview.
A firestorm erupts for the lack of women on twitter's on board.
It got so heated that one critic was called the carrot top.
We ask a woman who advised google, is it a serious misstep?
A new form of cyber attacks when hackers gained access to information on your smart phone.
We'll find out how it works and what you can be doing to protect yourself.
One tech titan is giving back to the city of san francisco.
Salesforce ceo marc benioff announced his donation to the middle school through his salesforce foundation.
The biggest one-time donation in the history of the school district and at improving science and technology education.
About 1.52 ilion dollars will improve tech including buying tablets for students.
Middle school principals will be getting $100,000 at their specific schools.
I spoke to marc benioff in an exclusive interview.
What's we had -- we had a huge commitment to the san francisco unified school district and we wanted to make the best in san francisco.
We deserve it.
We have this amazing wealth creation in the technology that is being created.
We need to give back, if a normal place to get back.
That's a phenomenal waste to give back.
They came to you asking for ipads.
You said to think bigger.
That is exactly what happened.
I have been putting computers in schools since the mid-1990s possible.
And the computer is not enough.
It is part of the answer.
The other part is money, the principles need money to be able to do what they need to do to make the technology worked.
They need people.
We have thousands of employees here in san francisco.
We ask all of them to do at least 4 hours of volunteer and -- volunteerism and it is paid.
That's a huge catalyst.
$2.7 million is the biggest donation and the school district history.
How do you want them to spend the money?
To figure out what the next 2.7 million dollar needs to be.
We need to come in with bigger resources and capabilities and the principals, mayors need to articulate a plan where they can show us the right targets.
The kids and san francisco need more and better health care, education photo we have to get them off the streets and the shelters.
This is an important time and san francisco.
We need to be giving back to help the kids.
What i am a new parent.
I have been thinking a lot about the school system.
We have some the most talented people in the bay area.
Why aren't the schools, why is there such a disconnect between the tech community and the school system?
There is a history in our industry that we have been a philanthropic.
That is changing.
You look at the new generation of entrepreneurs at uc philanthropic gifts that are happening.
We need to let them know that they can keep the money here and san francisco.
We have zynga on board.
Hot you more companies involved?
Web invention lies in our -- we have been invented our evangelizing model.
That was ev for us when we started with a no profit -- easy for us when we started with no profit.
We gave up a half million hours of volunteering.
We also run 20,000 nonprofits for free.
That is really the beginning of salesforce.
It is 14 years old.
We are having a phenomenal run as a company.
Because we made the decision that we would give back when we were more successful, we can do more in today's and that is evident.
How do you term into a scale of a model?
Wealthy people can get money.
How do you make for long-term improvement?
How do you scale what you are doing?
You can scale with we are doing by giving more.
There's a lot of resources.
It takes money, people, and technology.
One of those by it self is not enough.
Do you feel there is a disconnect between the technerati and real people and sever cisco?
-- and sever cisco -- in san francisco?
I do not.
There are people who wanted to give and support the schools and the homeless shelters.
We cannot create it on our own.
We need to be a public/private partnership.
We are lucky to have a great mayor.
Talk about google and facebook.
Jobs in silicon valley.
There has been criticism that it creates a different part of san francisco.
They do not use public transport will stop the housing prices are higher.
What do you make of that?
I do not agree.
What is happening is we are seeing the genesis of an incredible new city on this planet that is getting elevated by the technology and a great city like london and tokyo and new york and san francisco.
You are seeing san francisco be, full of these resources.
Those kind of medical amorphous or change or evolution -- metamorphism or change a you are seeing it now.
But -- do you find it important in terms of attracting talent?
All of those things.
We said we want a new technology model, cloud computing.
It is working out great.
We want a new business model which was subscription-based economy not just a license model.
That we wanted a profit model.
Those were our three goals.
We hold these philanthropic events whether at the school district or the children's hospital, for homeless children, that is part of what we want to do.
We have goals.
We also have goals to be the leaders in giving back.
Capitals part one of my interview with salesforce ceo marc benioff -- that was part one of my interview with salesforce ceo marc benioff and what is next and what he things of oracle.
You can watch is streaming on your tablet, on, and bloomberg.com.
? welcome back.
When salesforce started act in 19 99, cloud computing started like a pie-in-the-sky.
Smartphones and tablets are everywhere.
It is the new normal.
The ship has helped transform salesforce, was a scrappy startup into one of the leaders in silicon valley.
And part two of my interview with sales for ceo of i asked what you expect of the company.
Dream force is going to be 120,000 people and san francisco.
We have phenomenal programs.
1100 sessions on social computing, cloud, mobile computing.
Green day is playing.
We have a lot of surprises.
Sheryl sandberg will do a keynote.
We have some phenomenal speakers on health.
Wayne dwyer is coming.
Is there one single message this year?
There is which is behind every one of your apps is a customer and we show you why customer relationship management is more important than ever before.
As you mentioned salesforce has been growing, 35% every quarter you have managed the company for growth.
You're been asked this question before.
Profits are slim.
How long do you think it will continue to work?
Our focus and main focus and this has been very important and as you said it is working is growth.
Growth is the most important for us.
We'll do everything necessary to grow and that is why you see even in this year, we gave guidance over 4 billion in revenue at 30%. you have not seen a technology company in a wild.
That is because we have a focus on growth.
Even the acquisition we did with a phenomenal company in indianapolis.
What's your third one percent last quarter.
Oracle group -- you grew 31% last quarter.
Oracle grew smaller.
What are you doing right and what are they doing wrong?
I was there for 13 years.
The first time i put computers in school was in a public school a few blocks from here in the bayview.
I was with oracle.
Oracle is a phenomenal company with a phenomenal leader, larry ellison who is my mentor.
Oracle is very much about the server model.
That is not what customers want today.
Adding features through cloud computing.
How do compete?
They have not delivered.
We deliver the best cloud computing in the world am a social, mobile.
By their conference, they are rolling out new mainframe computers which are great computers if you want to buy computers.
That is not cloud computing either.
We are in a great place because enterprises need to go to the next generation of computing.
That next generation is the cloud.
What i know you watch the americas cup.
Larry skipped his keynote.
A huge passion of his.
What about criticism he is -- neglecting his day job?
It is very smart of him.
He got us to talk about it.
The americas cup was phenomenal pr for oracle.
Salesforce ceo marc benioff in a one-on-one interview.
Hackers have found a small way to get a big chunk of your personal data.
How cyber thieves are targeting sim cards next.
? welcome back.
A new hacking technique could lead to big problems for your personal information.
Cyber thieves are swapping sim cards to make international phone calls it legally and still all kinds of information including online think and details.
-- online banking details.
I did not know it was possible.
I did not until i got a call from somebody who was a victim.
Two sisters and atlanta.
A fascinating story.
Three years ago i wrote a story about this internet law in att network where they were trying to log into their facebook account from their mobile phone and was landing and other peoples facebook accounts.
They called us three years ago.
I said this cannot possibly be true.
We confirmed and wrote a great story.
The sisters called me again and said you might want to look into this.
I think hackers are switching sim cards and we were victims.
How are they doing it?
A lot of work.
They will learn you are in att customer.
They will get your basic information that can be found online.
They will call and pretend to be a customer service rep.
They will save and exchange for this, why don't you complete this satisfaction survey.
At the end, they ask what are the last four digits of your social.
It gives him enough information to call of the wireless company and convince them that they are you and to switch your sim card into their device.
But when the time you discover that and shut off your sim card from they wrapup times of international calls.
It is a pretty big problem.
At&t has said these are organized groups targeting its network.
It's a lot of work but it didn't get 12 or 24 hours of international calls him a that is hundreds of thousands of dollars.
Hackers are using it to intercept banking security messages.
They only need access to your phone for 15 seconds and they can log in and drain your account.
What can carriers do?
One thing vodafone is doing is they are sending text messages to every user that requests a sim card.
Sometimes you are requested a sim change which is a legitimate service because you lost your phone and you can get one.
That is a strong mechanism.
If i get a text saying it did request the change, i can say absolutely not.
At&t does not to do that.
Other services do.
I understand it is hitting a different international markets differently.
We are seeing international phone scams hitting at&t. several african nations.
Likely the people are making these calls do not know they are using stolen bandwidth.
It is sold into the marketplace is, exchanges.
People by prepaid services and their call is connected.
They do not know.
And south africa, banking fraud.
Hackers get all of your information that the one thing they cannot get it when your bank sends you a security code via text to confirm a change or a large withdrawal.
They are done.
Some security researchers i have spoken with have said if you are asked for a sim card, you have a powerful access into somebody's data.
You can make calls, steal information, copper my accounts.
It is a ton of work but there is pay off.
Jordan roberts, thank you for uncovering it will stop -- uncovering it.
The online marketing budget for retailers soar, there at dollars are the source -- their ad dollars are the source of hacking.
What hackers are targeting the deep pockets of advertisers.
A clever ruse.
They are misdirecting billions of dollars in their own accounts through fake websites.
I spoke to a cofounder dan who explained why this is exploding.
It is not just a big site.
Real sites, high-profile sites have abilities to put your content on open exchanges.
It is a ecosystem where lots of people can get in and if they are able to drive traffic, they can make money.
The end result is real sites are getting infested by these bots.
Why when at the bots send traffic to sites that seem to be doing something?
There was a media company that seems to be indexing sites.
Google shuffled their algorithms.
It took a big hit.
Themselves a way to move traffic.
At the end of the day, millions and none of them are real.
-- there is always a way to move traffic.
The hard part is that advertisers, the entire ecosystem wants clicks.
Everybody from the publishers to the exchanges.
They do not care if it is leading to sales.
But once the numbers are up they have to stay up.
That is the problem with fraud.
You might find out and down the line, none of it was legitimate.
The market expects you to have the number.
If you are an advertiser and you are getting a client and people to click on an ad, if you find out they are fake it is in your own interest to not let anybody know because you have to keep the numbers high.
You go to your customers and tell them everything was fraught.
They will want their money back.
They will ask, are you no longer a popular site?
What you are in, you are hooked.
This has been going on for years.
We have the situation where even people who want to go ahead and get rid of the fraud are stuck with them.
That is what we are fixing.
How big a problem is it?
It is huge.
Give me a sense.
We were looking at equally distributed fraud.
The cost of doing business, 10%- 50% is fraudulent, what ever.
When we look at the data, some places are very clean.
You have situations where there are personal relationships between publishers and advertisers.
You end up seeing a where you have -- my yahoo!
That focuses on brand advertising.
Situations like that very low fraud rates.
In other situations i'm a high numbers.
We are talking 70%, 80% fraud.
That was dan kaminsky with cory johnson.
With all eyes focus on twitter i had of the ipo, it finds itself in the headlines of not including any women.
That story is next on "bloomberg west." ? you are watching "bloomberg west" where we focus on technology and the future of business.
This spotlight is on twitter as we await the company's ipo.
One fact that it's getting a lot of attention is the lack of women on the board.
A war of words erupted between twitter ceo and stanford law fellow.
He told the new york times this is the arrogance of the silicon valley mafia, the twitter mafia.
As a male chauvinist it thinking that they went to the ipo without a single woman.
How dare they.
Costello -- costolo fired back saying vivek wadhwa is the carrot top of academia.
He said is more than checking a box.
They issued the following statement saying twitter actively -- we are a technology company but we are a company of people and with roughly 2000 employees worldwide of different experiences and background all working toward our goal of giving everybody the power to create and share ideas and silly without the barriers -- instantly without barriers.
Jon erlichman joins us with what is going on inside of twitter's board room.
What are you hearing?
I can tell you there is an active search taking up late right now.
Twitter is looking for a female director of its board according to people with direct knowledge of the matter.
This is a process that has been taking place within the last couple of months.
As for what goes into that process and how long it could take, twitter once to get the ideal candidate and are speaking weather technology or corporate america, sometimes it is challenging to -- for boards to finding the exact fit.
That is why my understanding is it could take some time, might be able to do it quickly.
At the end of the day, it is a board that is actively looking to add a female director.
We should also point out that only one of the highest executives is a woman.
She has just had the job for a few weeks.
Tell us more about the board as it exists today and what we need to know.
We talked a little bit about the board last week when some the financials became available to us.
You have a split between some of the early twitter folks, cofounders like jack dorsey and we learned about their stake in the company.
Peter fenton, the early investor through benchmark.
We have seen more operators whether peter chernin who have had experience at executive levels at other companies and a range of industries from hollywood to advertising and technology.
You get the sense that while the search that twitter is doing could yield a number of different types of candidates they would likely at the very least be looking for somebody with a similar type of experience.
Thank you so much for bringing us that information.
For more on the debate i am joined by -- you are well placed to comment on this.
She joins me from palo alto.
What is your take on this, the back-and-forth?
The back-and-forth is probably silly.
It is not wise to air your laundry even if you are twitter.
The bigger issue is the one is that you have a company that has no senior women or did not until five weeks ago and none on the board.
Kosta l.o. is right.
There is no reason for a company to just put a woman on the board.
-- dick costolo is right.
They might in fact benefit from a diverse aboard as well.
It that they're looking for a female board member for a long time, why haven't they found one?
Isn't that difficult to find a qualified woman who can serve on a board like twitter?
That is the right question.
What does a board due?
They do not to do product launches or code.
They are by design of new product and financial happenings whether acquisitions or incoming . a board make sure it is being reported and is region for short and long-term goals.
Those are not things that require your marquee names.
So much of a problem is that everybody asked the same high profile women to be on the board and those women are busy.
It is full of women that can do the task of the board member every bit as well and a number of the names popping up.
Do you think twitter needs to look a little harder or make it more of a priority?
I totally believe that are looking for women.
Everybody looks for the same six people.
If you are a little creative and figure out what it is the board meets, every board member should bring something different to the table.
How to scale the company, financial acumen.
A number of things.
What are the gaps that this board has?
And go out and be creative about solutions.
Too often here, we see people go for the marquee names.
There are not that many female ceos.
We shall point out that twitter is not alone in having just one woman in its upper executive suite.
Technology companies have really struggled with the equality for a really long time.
In terms of the issues, do you think the sec has taken issue with costolo making these comments publicly?
That is up to the sec.
These are material comments that impact the business.
It is probably better, even if twitter to say that these arguments for cocktails after work.
I do not -- i am not a lawyer, i do not see anything that impacts the fundamental claims they have made in the filing.
We actually spoke with vivek wadhwa of the early edition.
I want you to take a listen.
The same problem you have in silicon valley, a small elite group of people who i call the mafia.
They are stuck and they look like each other and talk and think like each other.
Is he going to extremes or does he have a point?
It depends on the company.
There are cliques like in high school in silicon valley.
To some extent he has a point.
He is probably positioned at the end of the tell.
We see lots of companies that have folks that are part of the inner circle.
Twitter looks like it has a lot of oaks that have worked together before -- folks that have worked together before.
This is not a condemnation.
A lot of them do a fine job.
They do not have any senior women investing.
Sometimes organizations operate with the people they are more comfortable.
From the outside it can look like a click.
I do not think it is rampant throughout the valley.
If you were advising twitter right now, will be advised them to do -- what would you advise them to do?
They are in the middle of the process and i would not comment on what they should do.
Given how high-profile, it is surprising they do not perhaps try to solve it before it hit "the new york times." they had a clear guide looking at other companies that went into similar issues work very differently.
Look at facebook.
Many senior women involved in running the business which is what matters.
They were put over the coals which is ridiculous is that board does not have voting power.
Twitter took long enough to prepare.
So smart about how they have walked carefully.
It is surprising.
Facebook went public without a woman on the board and they did at sheryl sandberg.
You are saying you see a big difference in terms of the composition and employees between twitter and facebook?
To use the comment earlier about checking the box.
Facebook is a structure and the board cannot make decisions away from mark zuckerberg.
That board should be filled with people whose advice he wants to take what he has to go outside of his company.
There are many senior women in facebook.
That company has done a terrific job and is made clear they will ask for opinions from a diverse set of voices.
If that little less clear that it's happening at twitter.
Twitter's board does have voting power.
There's no dual class structure.
A different voice.
Lise buyer, thank you for weighing in.
We'll be right back.
? this is bloomberg west.
More tv viewers are tweeting as they watch their favorite show.
Rating measurement nielsen.
Jon erlichman is back in new hollywood.
Twitter is eager to be a bigger part of the tv conversation.
Nelson once to remain relevant.
-- nielsen wants to remain relevant.
I spoke to their ceo.
Here's what he had to say.
We have not disclosed the specific economics with our arrangement with the twitter other to say twitter's ad sales is around and jumped to tv.
All of the advertisers you think about tv programs within tv wanted to have a twitter at it jumped.
That is the proposition twitter is putting into the marketplace.
It is highly beneficial for them to have an independent third- party metric which quantifies the activity around twitter and programs.
It is beneficial for us to have an exclusive deal and access to twitter data.
There are business reasons that you -- about every product you roll out that you will get paid more?
What we are trying to do is make sure we are ahead of the major trends.
Await consumers use media.
One trend is consuming content, video content on all kind of different tablets -- screens.
The second trend that really exploded last year has been the number of people tweeting about tv programs and the number of people who see the tweets and consume and engage around that activity.
For us, it is about making sure we are ahead of the trend.
On that note i'm a it sounds like you fill it will give you a competitive edge over somebody like comscore?
The metric we put out is something that no other player offers.
Not only are we measuring the number of people tweeting about tv programs in real time and record that aggregate on a 24- hour basis, we measure the reach of the tweaks.
The number of people who see those tweets and re-and engage around them.
That is something nobody else is doing.
That was steve hastert, president -- hasker, president at nielsen.
We'll be right back.
? welcome back.
Sam sun is hoping of the white house will step in to overturn an import ban on some devices that could go into effect at midnight tonight at the international trade commission ruled they had a french deck in french on to apple products.
-- infringed on 2 apple products.
Whether they will treat samsung like apple.
We look at the revenue.
It is simply a enormous what they have done.
What was already a big business five or six years ago of $90 billion up to $28 billion in stock prices.
As this thing has grown so much, fundamentally, differences in the two type of phones is not terribly pronounced.
That is the whole thing.
One piece of the phone is so different and what is the same and might the government decide and treat this as two different cases differently.
The department that will make the decision, the u.s. patent office will decide when they look at this and advise the president.
He said -- a reporter has said decisions have nothing to do with nationality of the parties involved.
If president obama vacated the ruling against apple for mahogany reject a rolling punishing samsung?
That is the way you might look at it.
If these cases are the same why would they not be treated the same or is a national?
It is possible they are different.
Yet under the most basic things about patents.
There are two kinds.
Nonessential and a standard in situ.
That's standard essential.
A seat heater, a standard essential like the wheels on the car.
They have to promise to fairly and reasonably and nondiscriminatory license those patents to apple.
What the president decided it was that apple was not being fair.
It seems to make the iphone unique.
The samsung patent is being withheld and is called very essential and they were not to do a fair job of offering those of to apple.
Making a comparison of apples to oranges.
The president could decide that samsung does have products and going to pay bigger fines.
What does the court case -- what what did the court case find?
The patents were being infringed.
In both cases, that was the finding.
Whether they were doing it they are licensing.
That is the whole case of the punishment could hinge on in the white house tonight.
Does the fact we are taught by this means the patent office is open for business despite the government shut down?
That the other wrench into the work.
The patent office could not enforce anything decided by the president tonight because nobody is there.
They went home.
Cory johnson, thank you.
We turn to our partnership with george washington university planets forward.
They are looking at how technology can help feed the planet.
Frank joins us from washington.
With a billion people on the planet facing food insecurity, cooking fuel is a good reason and concern for health reasons and the impact of the environment and cost.
This summer we sent a team to kenya and talked to a remarkable young researcher will develop big a new horizon and look at how technology can bring this innovation to scale.
My name is -- and i am a kenyan and scientists.
I am walking on briquettes.
Feeding the plants.
Africa, 400,000 dead from air pollution.
One of the oldest groups has been doing it for several years and what they do is use charcoal and mix it.
They take the mixture and mold it.
Into a rock.
They let it dry in the sun.
It is adapted.
You have got to -- [indiscernible] you go to areas where people grow sugar.
Carbon monoxide and carbon dioxide.
Not only are they cleaner but three times cheaper than wood that is damaging.
It is a win-win situation.
It is a simple technology, isn't it?
Why is it so important?
It is remarkable simple technology-cook it.
We saw hundreds of thousands people in africa die alone from cooking with wood in their huts.
They are having to cut down the wood.
It is more expensive than most can afford.
Some do not cook the right food.
This technology leads to a big change in the food chain.
Planet forward, thank you so much.
If you have an idea you would like to submit, visit planet forward.org.
It is time for the bwest byte.
You got it down here fast.
One number that tells a lot.
What did you got?
57,000. yesterday, twitter mentioned tony romo 57,000 times per minute.
It was the highest rated program since the academy awards.
Not about the 49ers game?
The explosions and social media went crazy.
The tweets went nuts and that drove the highest rating.
I actually believe it is a japanese tv show that got the most tweets ever at once?
I think that is the case.
Thank you for watching.
We'll see you tomorrow.
? . .
This text has been automatically generated. It may not be 100% accurate.