Connect with us

Published

on

In this article

Thomas Kurian, CEO of Alphabet’s Google Cloud, speaks at the Google Cloud Next conference in San Francisco on April 9, 2019.
Michael Short | Bloomberg | Getty Images

As a part of a recent reorganization within Google Cloud, CEO Thomas Kurian sidelined multiple tenured company veterans — one way he’s is living up to the company’s big expectations when it hired him two years ago.

CNBC reported Wednesday that Kurian, in a recent email to staff, announced a broad reorganization within Google Cloud’s engineering units. The shakeup is meant to help Google Cloud continue to grow its market share while streamlining an organization that has ballooned since Kurian took over. The technical unit alone has doubled since he joined, Kurian said in his recent email.

Google still lags behind Amazon and Microsoft in market share, but the recent reorganization and steady gains show why Kurian, an initially unlikely candidate, is doing what Google had hoped.

In the latest re-org, Kurian sidelined several veterans who otherwise may have stayed on board thanks to their tenure. There’s a joke among Google employees that longtime middle managers and executives can sit comfortably in their positions for as long as they want despite changing business needs, thanks to the cultural bureaucracy. But in this latest move, Kurian showed he isn’t afraid to bench veterans and give others more responsibility.

Kurian removed Eyal Manor, who has been at the company more than 14 years and worked within Cloud for five years. Manor oversaw the app management service Anthos, which Google hopes will give it an edge against rivals. Manor will look for other areas inside the company to work, Kurian said. Google spokesperson Jacinda Mein said that Manor chose to leave the group, and that the timing coincided with this reorg.

The reorg also effectively sidelines Urs Holzle, who was one of Google’s first ten employees and first vice president of engineering, removing him from some of his day-to-day responsibilities in favor of a more strategic role. Holzle recently faced backlash from employees for contradicting his own remote work policies, too.

Kurian also moved to unify Google Cloud’s technical teams under Brad Calder, who will take on some of Manor’s and Holzle’s responsibilities and report directly to Kurian. Calder spent eight years at Microsoft before joining Google Cloud in 2015.

Sundar Pichai, chief executive officer at Google LLC, speaks during the Google Cloud Next ’19 event in San Francisco, California, U.S., on Tuesday, April 9, 2019.
Michael Short | Bloomberg | Getty Images

Growth trumps culture, for now

While Google Cloud still isn’t profitable, Kurian has more than doubled revenue and slashed losses from when he first joined the company, earning praise from Alphabet CEO Sundar Pichai, CFO Ruth Porat and investors.

In the most recent quarter, cloud revenue grew to $4.63 billion, up nearly 54% from $3.01 billion a year ago. The cloud business had operating losses of $591 million, a dramatic 58.7% improvement from last year’s loss of $1.43 billion.

Kurian has also put a strong focus on the company’s sales organization. Prior to Kurian, 10 managers would have to provide approval before a salesperson could offer a discount to a customer, and the deal would then require non-disclosure agreements and a team of lawyers. Kurian streamlined some of those practices early on.

He has also encouraged the sales teams to incorporate other Google products, such as artificial intelligence tools and the Android mobile operating system, into their pitches in attempts to compete for more customers, especially more noteworthy ones. Kurian also reportedly boosted salespeople’s salaries to be more competitive than Amazon and Microsoft. 

Kurian had a reputation for a no-frills, at-times militant leadership style at Oracle. When Google hired him in 2018, it came as a shock because he was the least “Google-y” person to be a leader at the company, where employees largely felt they had a voice and everything was working toward a greater good.

Culturally, Kurian is still trying to figure out how to navigate that longstanding justice-motivated employee culture, but he isn’t completely writing it off, as some internally expected. Most recently, he claimed to seek information from the U.S. Customs and Border Patrol about how the company’s artificial intelligence cloud tools would be used amid employee concern. While, there’s still a contingent of employees upset with the prospects, Kurian hasn’t completely written those concerns off yet.

But culture fit is not why Google hired him. They knew his reputation. Google’s culture more generally had already begun moving toward a culture that no longer shied away from military contracts or used slogans like “Don’t Be Evil.”

Whether or not Kurian’s process works in the long run, growth is what Google wants and growth is what what it’s getting — for now, at least.

Watch Now: Google Cloud is reorganizing its engineering units

Continue Reading

Technology

Xi tells Dutch prime minister: No force can stop China’s tech advance

Published

on

By

Xi tells Dutch prime minister: No force can stop China’s tech advance

THE HAGUE, NETHERLANDS – MARCH 23:Dutch Prime Minister Mark Rutte meets with the President of the People’s Republic of China Xi Jinping at the Catshuis March 23, 2014 in The Hague, Netherlands. (Photo by Valerie Kuypers-Pool/Getty Images

Valerie Kuypers-Pool | Getty Images News | Getty Images

China’s technological progress cannot be stopped, Chinese President Xi Jinping told Dutch Prime Minister Mark Rutte when they met in Beijing Wednesday for talks on areas such as the critical semiconductor industry.

“The Chinese people also have legitimate development rights, and no force can stop the pace of China’s scientific and technological progress,” said Xi, according to Xinhua News Agency.

Xi said China will “continue to pursue a win-win approach.”

Relations between China and the Netherlands have been strained since the the Netherlands, together with the U.S., blocked exports of advanced chip technology to China over concerns they could be used for military purposes.

Semiconductor chips are critical components which can be found in everything from smartphones to automobiles.

Dutch tech giant ASML has been barred from exporting extreme ultraviolet lithography machines to China — it is the only company currently capable of making such machines To date, it has not shipped a single EUV machine to China yet.

Such EUV lithography machines are crucial for chip manufacturing and are used by companies like Taiwan’s TSMC to make the smallest and most sophisticated chips.

In January, the Netherlands barred ASML from exporting some of its deep ultraviolet lithography systems to China, which are used to make slightly less advanced chips.

Semiconductor chips: There's a 'three horse' race outside mainland China, analyst says

Beijing slammed the Dutch government’s move, urging the Netherlands to “uphold an objective and fair position and market principles” and “protect the shared interests” of the two countries and their companies.

“Creating scientific and technological barriers and severing industrial and supply chains will only lead to division and confrontation,” Xi said Wednesday, according to Xinhua state media.

He said cooperation is the only way and added that “decoupling and breaking the chain” is not an option.

Xi said China is ready to continue dialogue with the Netherlands and urged the Dutch side to “provide a fair and transparent business environment for Chinese enterprises.”

According to Reuters, Rutte said Wednesday the Netherlands tried to ensure that export restrictions, when related to semiconductor industry and companies like ASML, are never aimed at one country. “We always try to make sure the impact is limited,” he was quoted as saying.

Chinese state media reported that Rutte responded by saying decoupling is not a policy choice for the Dutch government either, “since any act undermining China’s development interests will only boomerang.”

Continue Reading

Technology

China-made vehicles will comprise a quarter of Europe’s EV sales this year, study shows

Published

on

By

China-made vehicles will comprise a quarter of Europe's EV sales this year, study shows

A BYD Co. Atto 3 electric sport utility vehicle (SUV) on day two of the Geneva International Motor Show in Geneva, Switzerland, on Tuesday, Feb. 27, 2024. 

Bloomberg | Bloomberg | Getty Images

China-made electric vehicles will make up more than a quarter of the EV sales in Europe this year, with the country’s share increasing by over 5% from a year earlier, according to a new policy analysis. 

About 19.5% of battery-powered EVs sold in the EU last year were from China, with close to a third of the sales in France and Spain constituting EVs shipped from the Asian country, the European Federation for Transport and Environment (T&E) reported in a paper shared Wednesday. 

The share of made-in-China vehicles in the region is expected to rise to just over 25% in 2024, according to the T&E research, as Chinese brands such as BYD ramp up their global expansion

While most EVs sold in the EU are from Western brands such as Tesla, which manufactures and ships EVs from China, Chinese brands alone are set to account for 11% of the region’s market in 2024. That share could reach 20% by 2027, T&E predicted. 

The findings come as the European Commission probes subsidies given to electric vehicle makers in China to determine if they unfairly undercut local companies. Non-Chinese brands that ship from China, such as Tesla and BMW, could be included in the ongoing subsidy investigation. 

According to Tu Le, founder of Sino Auto Insights, incentives put in place in China in the early 2010s led to a surge in startups and increased battery cell capacity in the country, paving the way for affordable EVs.

The EU is focusing its China EV probe on production-side subsidies

“The EU and the US are so far behind because they don’t have quality EVs at affordable prices because the legacy automakers have only really recently focused on designing & engineering them,” he added.

T&E suggested it would take raising EV tariffs to at least 25%, from the current 10%, for “medium” electric cars such as sedans and SUVs from China to become more expensive than their EU equivalents, though compact SUVs and “larger cars” would remain slightly cheaper.

However, the policy group said this would also require Europe to become more self-sufficient in battery cell production for the domestic EV industry. 

“The conundrum they see themselves in is that they can’t build affordable (and profitable) EVs without Chinese batteries because the Chinese are so far ahead of both the EU & US on the mineral mining, refining and manufacturing sides,” said Sino Auto Insights’ Le. 

In response to policy risks associated with shipping made-in-China EVs to Europe, China-based manufacturers such as Tesla and BYD have ramped up manufacturing efforts in the continent. Tesla is seeking to expand its assembly plant in Germany, while BYD plans to build a factory in Hungary. 

“The aim [of tariffs] should be to localise EV supply chains in Europe while accelerating the EV push, in order to bring the full economic and climate benefits of the transition,” T&E said in their report. 

Continue Reading

Technology

UnitedHealth Group has paid more than $3 billion to providers following cyberattack

Published

on

By

UnitedHealth Group has paid more than  billion to providers following cyberattack

In this photo illustration the UnitedHealth Group logo displayed on a smartphone screen. 

Sheldon Cooper | Sopa Images | Lightrocket | Getty Images

UnitedHealth Group has paid out an additional $1 billion to providers that have been impacted by the Change Healthcare cyberattack since last week, bringing the total amount of funds advanced to more than $3.3 billion, the company said on Wednesday.

UnitedHealth, which owns Change Healthcare, discovered in February that a cyber threat actor had breached part of the unit’s information technology network. Change Healthcare processes more than 15 billion billing transactions annually, and one in every three patient records passes through its systems, according to its website.

The company disconnected the affected systems “immediately upon detection” of the threat, according to a filing with the SEC. The interruptions left many health-care providers temporarily unable to fill prescriptions or get reimbursed for their services by insurers.

Many health-care providers rely on reimbursement cash flow to operate, so the fallout has been substantial. Smaller and mid-sized practices told CNBC they were making tough decisions about how to stay afloat. A survey published by the American Hospital Association earlier this month found that 94% of hospitals have experienced financial disruptions from the attack. 

As a result, UnitedHealth introduced its temporary funding assistance program to help providers in need of support. The company said the $3.3 billion in advances will not need to be repaid until claims flows return to normal. Federal agencies like the Centers for Medicare & Medicaid Services have introduced additional options to ensure that states and other stakeholders can make interim payments to providers, according to a release.

UnitedHealth has been working to restore Change Healthcare’s systems in recent weeks, and it expects some disruptions will continue into April, according to its website. The company began processing a backlog of more than $14 billion in claims on Friday, and on Wednesday said, “claims have begun to flow.”

Shares of UnitedHealth have fallen more than 6% since the attack was disclosed.

Late last month, the company said the ransomware group Blackcat is behind the attack. Blackcat, also called Noberus and ALPHV, steals sensitive data from institutions and threatens to publish it unless a ransom is paid, according to a December release from the U.S. Department of Justice. 

The Department of State on Wednesday announced it’s offering a reward of up to $10 million for information that could help identify or locate cyber actors linked to Blackcat.

UnitedHealth said Wednesday that it’s “still determining the content of the data that was taken by the threat actor.” The company said a “leading vendor” is analyzing the impacted data. United Health is working closely with law enforcement and third parties like Palo Alto Networks and Google‘s Mandiant to assess the attack.

“We continue to be vigilant, and to date have not seen evidence of any data having been published on the web,” UnitedHealth said. “And we are committed to providing appropriate support to people whose data is found to have been compromised.”

Rep. Jamie Raskin, D-Md., ranking member of the House Committee on Oversight and Accountability, wrote a letter to UnitedHealth CEO Andrew Witty on Monday requesting information about the “scope and extent” of the breach.

Raskin asked Witty for information about when Change Healthcare notified its clients about the breach, what specific infrastructure and information was targeted and what cybersecurity procedures the company has in place. The committee requested written responses “no later” than April 8.

“Given your company’s dominant position in the nation’s health care and health insurance industry, Change Healthcare’s prolonged outage as a result of the cyberattack has already had ‘significant and far-reaching’ consequences,” Raskin wrote.

The Biden administration also launched an investigation into UnitedHealth earlier this month due to the “unprecedented magnitude of the cyberattack,” according to a statement.

WATCH: UnitedHealth unit begins processing $14 billion medical claims backlog

UnitedHealth unit begins processing $14 billion medical claims backlog after hack

Continue Reading

Trending