Privacy Advocates Laud Obama NSA Phone Record Plan

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March 27 (Bloomberg) –- Bloomberg’s Phil Mattingly discusses the NSA’s collection of phone metadata. He speaks on Bloomberg Television’s “Bloomberg West.” (Source: Bloomberg)

Live from pier 3 in san francisco, welcome to "bloomberg west." aol ceo tim armstrong joins us to talk about his company's new platform.

Will it help aol get a bigger piece of the ad market?

First twitter and now turkey has blocked access to google's youtube.

The turkish court ordered the government to lift the ban on twitter although it is unclear whether if or when it will be lifted.

Twitter has signed a deal with billboard.

Charts will measure the popularity of songs based on how much buzz it is generating.

Twitter announced plans to his continued its #music app.

Shares are up more than 15%. try net makes cloud-based software for medium and small businesses.

It is time for microsoft the dallas to meet the press as chief executive.

Making a bigger push into mobile and tailoring its office suite to work on apple's iowa state vices for the very first time.

Cory johnson is live outside the event.

You have two big significant things happening in san francisco.

We will have satya nadella, the new microsoft ceo, addressing the tech journalists.

That is a big deal.

It is a big deal that he came to us.

He came to san francisco where the big tech companies are headquartered here in -- headquartered.

Microsoft office will be on the iphone and the ipad.

There are more ios devices sold then microsoft devices.

Coming to where the users are.

That is a big admission from microsoft that they need to be in more places.

Standby.

I want to take a deeper dive into who he is and what his qualifications are.

Here is a look into the background of the man who is taking over for steve ballmer.

How would you like to follow this act?

The good news for satya nadella is no one expects them to be steve ballmer or wants them to be.

An fact, he is now having to deal with the tug-of-war over strategy.

Cofounder bill gates initially disagreed with ballmer's plan to make mobile devices.

It didn't help that the microsoft surface tablet was a dead.

In nadella, they have chosen a -- he spent wendy two years at microsoft.

He ran the company's rmb unit before ballmer named him the head of the server group.

He reengineered that business into the unit known today as cloud and enterprise.

Under his leadership, it has risen to number two worldwide in cloud computing behind amazon.

Nadella is seen as someone who can help microsoft innovate faster as it tries to navigate the post-pc world.

He can still count on windows and office, microsoft's two big money makers.

So what does today mean for the future of microsoft?

We have a group of special guests to discuss.

From framingham, massachusetts.

We have -- a former microsoft executive who reported to nadella for many years and cory johnson who is live at the event.

Michael, i would like to start with you.

Why did nadella make so long to make his debut to the public?

Actually, if you look at it in the context of the time he has been ceo of microsoft, it has been a very fast move.

This decision was made when ballmer was still ceo.

In october, he announced that the office for ipad would be coming in 2014. given the ceo search and the time it took to get the ducks in the road -- in a row -- so you are saying that nadella doesn't really get credit for this announcement?

[laughter] this work has then going on within microsoft for at least three years.

I think we are having trouble with your microphone.

I will get back to cory.

Did you hear that?

He says that nadella doesn't deserve credit for this announcement.

Michael couldn't be more wrong.

I couldn't hear them but i will just say that he couldn't be more wrong.

I think nadella's influence at microsoft was felt in the decision to do things like this app.

His groundbreaking decision and insistence that they offer oracle database on the microsoft cloud to their customers was the kind of decision that this also represents.

The notion of making an ipad -- one of the great strengths of microsoft is the strength of microsoft word, microsoft powerpoint, microsoft itself, those applications that are so unique to microsoft.

Making the decision to share those with an operating system that they are try to be in the marketplace will strengthen apple not just by making devices more useful but 30% of those sales will get paid right out to apple.

That is a very aggressive decision.

Absolutely, this started under steve ballmer.

But this is nadella showing the way of the future.

Office is one of microsoft's big products.

Google is trying to get into that market with google documents.

I just spoke with bret taylor who is trying to replace windows from mobile altogether.

In terms of this competitive landscape, is office really the right thing for nadella to be focusing on?

Absolutely.

This is the language of business.

When you think about the way people communicate, the way that they send information, microsoft office is a huge part of that language.

People can throw rocks at it.

People can say it is not as relevant as it used to be.

But in the valley, it is the way people use information.

Microsoft needs to up level away from the os and to microsoft services.

You will see more of a collaboration platform in a way to unlock her grams.

Michael, you worked with nadella for many years.

Where do you see him leading this company and is it the right direction?

He is a really incisive thinker and he loves to be able to find near-term opportunities within the company to execute huge returns.

I agree with cory in the economics case... -- the decision.

I think satya has an immense challenge with respect to changing the innovation culture within microsoft.

It is not good enough to connect the dots anymore.

You have to find those blue ocean opportunities compared to where competitors are today.

I wonder about microsoft's on mobile devices.

What are the plans for those?

Is nadella going to continue to focus on those products?

I think that next week, here in san francisco, there will be a big focus on some phones, possibly announcements of new devices as well.

I think the reason they split this announcement apart from next week is that they want to get a lot of focus on this ios product.

The best analyst estimates are talking bout dollars in revenue but a big part of this is really not so much about the consumer.

While the consumer will really spend some money on this and the consumers who use office products in other environments,, what this is is trying to get back into the enterprise on the devices they lost the battle of.

Where you got the android devices and the ios devices coming to the office place.

Articulately the ipad.

-- particularly the ipad.

You've got your ipad without office.

Microsoft has a chance to get that subscriber revenue on a regular basis to bring those users back into that ecosystem that is microsoft with the office product.

I think that is the strength they want to offer here.

Crawford, what odds do you give nadella to be able to make some of these hard turns, to change the innovation culture to make these major platform shift decisions that could be very difficult along the way?

I give him high odds.

I give him 75% odds.

Microsoft's relevance with consumers has dropped.

They cannot afford to let their relevance drop in the same way.

People need these kinds of devices.

People want to use this microsoft service.

You can use google services, but it's harder.

This kind of a service has huge value.

So microsoft needs to unlock that value and they need to transform the company to be able to say, look, where we can excel, we can monetize that and grow.

So there is a much larger willing participants.

They need to be pushed there.

We are looking at satay nadella right now on stage and he is not jumping around like a monkey.

He looks like a normal ceo.

Crawford gives in 75% odds.

I think that is pretty fair.

I think that is exactly the kind of mission microsoft needs to focus on.

Microsoft has been hamstrung by its prior mission of a pc on every desk in every home.

Ok.

michael kim who worked for nadella.

We will be back with cory later on this hour.

? this is "bloomberg west." yahoo!

Publishes a transparency report.

The report says data was disclosed in 83% of cases.

Google also published a report saying that government requests are up 120% in the last four years.

It also disclosed data in the second half of last year.

The reports come from google and yahoo!

Just as president obama offers a major overhaul.

He wants to end bulk phone data collection.

Our white house correspondent joining us from washington.

First of all, break it down for us.

What exactly is the president proposing?

What they laid at -- what the white house laid out is they want to end bulk collection but they want the federal agencies and law-enforcement to have access to the same kind of data.

That means that the nsa will no longer be collecting that bulk metadata from the phone program.

The phone companies will maintain them which is what they are required to do by law now.

Then the federal government would have to get an ok from the fisa court before they can go query data.

This is being lauded by privacy advocates as a major step forward compared to where we were.

However, there is concern from the phone companies.

The general counsel from verizon has released a statement saying that putting the onus on the phone companies might be problematic from a couple of different levels, not the least of which is legal liability and the other is cost to comply.

Why is the administration getting so involved in what is likely to be a congressional debate?

It is very interesting.

It is a house and senate issue now, not the white house.

The white house perspective is this.

We need to get involved in this because there are segments of the house and senate who want to go even further, be more restrictive.

The white house feels that, if they can get a conversation around their specific proposal, they can get more of what they want in the final way of the program.

Thank you.

Coming up, aol push into advertising.

You can watch us on your bloomberg how the -- bloomberg tablet.

Four of the top contenders for the 2016 republican residential nomination are spending the weekend in las vegas where the republican jewish coalition is meeting.

Candidates are hoping to convince sheldon adelson that they are the ones who can win the white house.

Josh green is in las vegas outside the venetian hotel where this meeting is going down.

Josh, tell us who is there and why.

You have four blue-chip republican candidates.

Chris christie of new jersey.

Jeb bush.

And scott walker who is the governor of wisconsin.

And john kasich, governor of illinois.

Adelson has summoned them out there.

He is putting on a beauty contest to pick one of these guys and back them with his substantial fortune.

In 2012, adelson dropped $23 million in the presidential election.

Whatever candidate he selects stands to get a substantial gain.

Talk about adelson's position on internet gambling.

It is something he does not like at all but a direction that some states are going in.

Adelson made his fortune obviously with casinos like the venetian behind me.

Real-world casinos that people come and visit and spend money at.

Internet gambling poses a threat and he helped fund a washington front group to stop internet gambling.

This is not an issue that is big within the gop.

He will have a bit of trouble finding support.

Being willing to offer $100 million to a candidate is certainly an incentive.

But if you look at people like chris christie who will be here at this dinner tonight, christie has supported internet gambling in the state of new jersey.

Social than adelson may wind up with having to choose between supporting unelectable republican -- supporting an electable republican and one inclined to block internet gambling, social security -- social conservatives like mike huckabee and rick santorum.

You think huckabee still has a chance of getting his support even though new jersey has legalize online gambling?

Early on, yeah.

The word is that adelson viewed christie they very -- christie very favorably.

That was before the washington bridge scandal.

The word is that adelson is concerned.

But chris christie is here and he will have a one-on-one number station with adelson.

So he is still in the running for adelson's support.

Let's talk a little bit about republican candidates and how they are using and understanding technology.

Historically, republicans, it seems, haven't needed to embrace technology.

Is that changing with this new crop of potential candidates?

That is a great question.

It is changing with some of the candidates.

Republicans, most of them know they got stumped on tech in 2012. the smaller segment of gop hopefuls, rand paul and marco rubio, are trying to embrace and identify themselves with the innovation economy.

Rubio has given speeches at uber and google and talked about the economy and innovation.

It is likely that candidates like those would suddenly stand up and endorse a ban on internet gambling.

One of the questions to watch or to keep an eye on in the republican primary is due candidates like rubio and paul emerge as strong contenders or will it be somebody from the old school republican party, some of you like santorum who hasn't put up a position on tech one way or the other.

I am inclined to believe that rubio and paul will be better candidates.

Josh green for us in las vegas at the ship -- the sheldon adelson hi mary.

Coming up, we will be talking about aol wanting to get a slice of the online advertising market.

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

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