Twitter To Track Mobile Users

Twitter Inc has plans to start tracking what third-party apps are installed on users’ mobile devices so the social media company can deliver more tailored content, including ads, the company has revealed.

The feature, called “app graph,” will allow the company to see what other applications users may have installed on phones or other devices.

“To help build a more personal Twitter experience for you, we are collecting and occasionally updating the list of apps installed on your mobile device so we can deliver tailored content that you might be interested in,” the company said on its site.

The posting also included instructions on how to turn the feature off. Twitter is not collecting data from within the applications, the posting noted.

Twitter, whose main service allows users to broadcast 140-character messages, has been searching for ways to re-invigorate user engagement and drive growth. As part of that effort, the company is considering creating additional mobile applications beyond its core messaging service.

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IBM And Tencent Team Up

Tencent Holdings Ltd announced that it would be teaming up with International Business Machines Corp (IBM) on a new cloud software business for corporate customers, a marked departure for one of the dominant forces in China’s consumer Internet industry.

Best known for its popular WeChat messaging app and its online games rather than business software, Tencent said its cloud unit would now target small and medium enterprises in the healthcare and “smart city” industries.

Many technology firms are jockeying for a slice of China’s enterprise software market, which promises to grow sharply in coming years as businesses modernize their IT operations and move data onto the cloud.

Tencent’s alliance with IBM, which has deep experience providing computing and consulting services to corporate clients, provides the Shenzhen company a competitive answer to its Chinese rival Alibaba Group Holding Ltd’s nascent cloud efforts.

An e-commerce giant, Alibaba has been slowly building its cloud unit, which recorded just $38 million in revenue in the three months ended June 30.

Tencent said it would tap IBM for its “industry expertise and enterprise reach” but did not disclose financial terms of the deal.

For IBM, the Tencent deal is just the latest in a recent spate of new software partnerships in China, where its hardware sales have been sliding.

IBM announced a deal earlier this year to install its cutting-edge DB2 database software on Chinese rival Inspur International Ltd’s machines. Big Blue also agreed to license its database and big data technology to Chinese software vendor Yonyou Software Co Ltd.

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MasterCard Testing New Fingerprint Reader

MasterCard is trying out a contactless payment card with a built-in fingerprint reader that can authorize high-value payments without requiring the user to enter a PIN.

The credit-card company showed a prototype of the card in London on Friday along with Zwipe, the Norwegian company that developed the fingerprint recognition technology.

The contactless payment card has an integrated fingerprint sensor and a secure data store for the cardholder’s biometric data, which is held only on the card and not in an external database, the companies said.

The card also has an EMV chip, used in European payment cards instead of a magnetic stripe to increase payment security, and a MasterCard application to allow contactless payments.

The prototype shown Friday is thicker than regular payment cards to accommodate a battery. Zwipe said it plans to eliminate the battery by harvesting energy from contactless payment terminals and is working on a new model for release in 2015 that will be as thin as standard cards.

Thanks to its fingerprint authentication, the Zwipe card has no limit on contactless payments, said a company spokesman. Other contactless cards can only be used for payments of around €20 or €25, and some must be placed in a reader and a PIN entered once the transaction reaches a certain threshold.

Norwegian bank Sparebanken DIN has already tested the Zwipe card, and plans to offer biometric authentication and contactless communication for all its cards, the bank has said.

MasterCard wants cardholders to be able to identify themselves without having to use passwords or PINs. Biometric authentication can help with that, but achieving simplicity of use in a secure way is a challenge, it said.

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Amazon Expands Grocery Service

Amazon.com Inc is add more territory to its online grocery delivery program to Brooklyn’s well-heeled Park Slope neighborhood, giving the No. 1 U.S. online retailer a foothold in one of the wealthiest and densest markets in the United States.

The AmazonFresh program, which offers same-day or next-day delivery on more than 500,000 items including fresh and frozen groceries, will soon expand to other areas in Brooklyn.

The move is part of Amazon’s slow build-out of its “Fresh” program, targeting one of the largest retail sectors yet to be upended by online commerce. Amazon declined to say if it will expand to Manhattan or other parts of the New York metro area.

“Currently, we are offering AmazonFresh in Brooklyn and will continue being thoughtful and methodical in our expansion,” an Amazon spokeswoman said in an e-mail.

Groceries have proven to be one of the toughest sectors for technology companies to manage, and Amazon faces competition from established companies like FreshDirect as well as fast-growing startups like Instacart.

But a successful foray in Park Slope could help Amazon cement customer loyalty and boost sales, especially among wealthy and middle-class families, analysts have said.

The top 10 to 20 percent of wealthiest Americans spend between 3 and 4 times more on food than the average American family, according to Bill Bishop, chief architect at Brick Meets Click, a consulting firm focused on retail technology.

“They are the sweetest of shoppers so anybody who attracts that business is taking the cream of the market,” Bishop said.

Amazon could also use its Fresh program to experiment with its own delivery service, analysts have said.

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What Will Facebook Do With WhatsApp?

Facebook, which closed its acquisition of mobile messaging service WhatsApp earlier this week, has said that it has no near-term plan to make money from it.

Chief Executive Mark Zuckerberg, who is visiting India to participate in an event to boost Internet usage, refused to say much more, but it does indicate that the company has not worked out a cunning plan yet.

Facebook’s final WhatsApp acquisition price tag has risen an additional $3 billion to roughly $22 billion because of the increased value of Facebook’s stock in recent months. This means that Zuckerberg is under pressure to make a bob or two from the deal.

WhatsApp works across different types of phones, across borders, and without advertising. The app only charges a 99 cent annual subscription fee, which is waived for the first year.

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Will Verizon Throttle Users?

Verizon Wireless backed away from a widely criticized plan to slow down the connections of heavy data users with unlimited LTE plans.

The carrier had announced in July it would extend a practice it calls network optimization to unlimited LTE subscribers starting in October. Network optimization targets the top 5 percent of data users on the network when a cell site is under the heaviest demand, and slows down those users’ network performance. Verizon had already applied the practice to the top users of its 3G network.

“We’ve greatly valued the ongoing dialogue over the past several months concerning network optimization and we’ve decided not to move forward with the planned implementation of network optimization for 4G LTE customers on unlimited plans,” the carrier said in a statement on Wednesday. “Exceptional network service will always be our priority and we remain committed to working closely with industry stakeholders to manage broadband issues so that American consumers get the world-class mobile service they expect and value.”

U.S. Federal Communications Commission Chairman Tom Wheeler attacked the plan in a letter to Verizon, suggesting it was a ploy to get customers to switch from their unlimited plans to ones with a cap on monthly data usage. Verizon no longer sells new unlimited plans but allows subscribers with those plans to keep them.

“I know of no past Commission statement that would treat as ‘reasonable network management’ a decision to slow traffic to a user who has paid, after all, for ‘unlimited’ service,” Wheeler wrote in the late July letter to Verizon Wireless President and CEO Dan Mead.

Digital rights group Public Knowledge also attacked so-called data throttling, as well as practices by AT&T, Sprint and T-Mobile USA.

The showdown demonstrated the tension over increasing demand for mobile data, which carriers say puts a strain on their networks. Among other things, that demand has led operators to seek ever more spectrum and apply network management techniques they say are necessary to keep serving all subscribers well. Though LTE makes much more efficient use of the airwaves than 3G does, LTE networks are serving a rapidly growing number of subscribers.

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Ericsson Acquires Fabrix Systems

The distinctions between TV and mobile services continues to merge and in many cases that occurs in the cloud.

That’s the logic behind Ericsson’s planned $95 million acquisition of Fabrix Systems, which sells a cloud-based platform for delivering DVR (digital video recorder), video on demand and other services.

The acquisition is intended to help service providers deliver what Ericsson calls TV Anywhere, for viewing on multiple devices with high-quality and relevant content for each user. Cable operators, telecommunications carriers and other service providers are seeing rapid growth in video streaming and want to reach consumers on multiple screens. That content increasingly is hosted in cloud data centers and delivered via Internet Protocol networks.

Fabrix, which has 103 employees in the U.S. and Israel, sells an integrated platform for media storage, processing and delivery. Ericsson said the acquisition will make new services possible on Ericsson MediaFirst and Mediaroom as well as other TV platforms.

Stockholm-based Ericsson expects the deal to close in the fourth quarter. Fabrix Systems will become part of Ericsson’s Business Unit Support Solutions.

Other players usually associated with data networks are also moving into the once-specialized realm of TV. At last year’s CES, Cisco Systems introduced Videoscape Unity, a system for providing unified video services across multiple screens, and at this year’s show it unveiled Videoscape Cloud, an OpenStack-based video delivery platform that can be run on service providers’ cloud infrastructure instead of on specialized hardware.

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Apple-IBM Alliance Downplayed

IBM Corp’s recent move to team up with Apple Inc to sell iPhones and iPads loaded with corporate applications has excited investors in both companies, but two rivals say they are unfazed for now.

Top executives at Dell and BlackBerry Ltd scoffed at the threat posed by the alliance, arguing the tie-up is unlikely to derail the efforts of their own companies to re-invent themselves.

“I do not think that we take the Apple-IBM tie-up terribly seriously. I think it just made a good press release,” John Swainson, who heads Dell’s global software business, said in an interview with Reuters in Toronto last week.

PC maker Dell and smartphone maker BlackBerry are in the midst of reshaping their companies around software and services, as the needs of their big corporate clients morph.

Swainson, who spent over two decades in senior roles at IBM, said, “I have some trouble understanding how IBM reps are going to really help Apple very much in terms of introducing devices into their accounts. I mean candidly, they weren’t very good at doing it when it was IBM-logoed products, so I do not get how introducing Apple-logoed stuff is going to be much better.”

While conceding that Apple products hold more allure, Swainson said they lack the depth of security features that many large business clients like banks covet.

IBM and Apple could not immediately be reached for comment.

BlackBerry Chief Executive John Chen similarly downplayed the threat of the alliance in an interview with the Financial Times, likening the tie-up to when “two elephants start dancing.”

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Microsoft Adds Anti-snooping Safeguards

Microsoft has added encryption safeguards to the Outlook.com webmail service and to the OneDrive cloud storage service, in part to better protect these consumer products from government surveillance.

“Our goal is to provide even greater protection for data across all the great Microsoft services you use and depend on every day. This effort also helps us reinforce that governments use appropriate legal processes, not technical brute force, if they want access to that data,” Matt Thomlinson, vice president, Trustworthy Computing Security, at Microsoft wrote in a blog post.

The move follows similar ones from other cloud computing providers. For example, Google announced end-to-end encryption for Gmail in April, including protection for email messages while they travel among Google data centers. It recently announced similar encryption for its Google Drive cloud storage service.

It’s not clear from Microsoft’s announcement whether the encryption protection it announced covers Outlook.com messages and OneDrive files as they travel within Microsoft data centers. It’s also not clear what, if any, encryption OneDrive and Outlook.com have had until now. Microsoft didn’t immediately respond to a request for comment.

Cloud computing providers like Microsoft, Google, Amazon and many others have been rattled by disclosures from former National Security Agency contractor Edward Snowden regarding government snooping into online communications, due to the effect on their consumer and business customers.

As a result, these companies have been busy boosting encryption on their systems, while also lobbying the U.S. government to stop the stealthy and widespread monitoring of Internet services.

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Salesforce Goes Healthcare

Salesforce Inc, one of the first cloud-computing companies, is turning its focus towards healthcare with new software and services aimed at the largest hospitals.

Salesforce has announced a strategic alliance with Amsterdam-based medical technology company Philips, which it envisions as the first of many partnerships. These companies will announce two new medical applications later in the summer, called Philips eCareCoordinator and Philips eCare Companion.

The software is designed to improve health and cut costs. The apps are intended to be used by physicians to monitor chronically ill patients between doctor visits.

Salesforce said the goal is to make it easier for hospitals to collect and analyze data from medical devices, which patients with chronic conditions often use at home.

“In the United States, care providers are facing increasing demands and decreasing reimbursement,” said Michael Peachey, a senior director of solutions and product marketing at Salesforce.

“We want to improve efficiency for physicians by transmitting patient data in real time.”

Peachey said the Salesforce software meets security and privacy rules under the Health Insurance Portability and Accountability Act, known as HIPAA.

In the short term, Peachey said Salesforce intends to develop additional apps with other partners to help doctors and nurses monitor patients from the comfort of their homes.

“It’s an open platform,” he said.

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