tv Bloomberg Technology Bloomberg May 23, 2022 11:00pm-12:00am EDT
>> from the heart of where innovation, money, and power collide, in silicon valley and beyond, this is "bloomberg technology" with emily chang. emily: i am emily chang in san francisco, and this is "bloomberg technology." coming up, broadcom in talks to buy vmware, setting up a blockbuster tech deal that would vault the chipmaker into a highly specialized area of software. we tell you everything we know so far about this bloomberg scoop. plus i am joined exclusively by ceo and chair of adobe. we have a lot to talk about including how adobe is handling this market selloff, plus his outlook for the company's future and plans for the metaverse.
an coinbase's fall from grace. how a bear market, revelatory pressure and falling crypto prices are piling up on the largest u.s. crypto exchange. coinbase has now lost $51 billion in market value since its ipo. more in our crypto report, later. we will get to all of that in a moment but i want to look at the first markets. tech lead a rebound in u.s. stocks after president biden signaled he would reconsider china tariffs imposed by the trump administration. ed ludlow is here with the biggest movers. ed: it gave the market some confidence and risk-on sentiment. the nasdaq 100, tech heavy, up 1.7%. we are coming off the back of seven straight weeks of declines. it was a very negative mood last week. remember, it was in dour straits. the semiconductor index is not as strong. we will speak about why in a moment. risk-on mode. yields are higher on the u.s. 10 year. 2.85%.
bitcoin has troubled around the $30,000 a token mark. it has swung between the levels above $30,000, below $29,000 in recent days, no real direction. earnings season continues in earnest. we are also focused on zoom. we wanted to know what the future was for this pandemic darling. well, the future is hybrid work. the stock is up 10.5% in after-hours. we were up as much as 18%. strong fiscal guidance based on expanding sales, more enterprise customers. more dollars out of those enterprise customers. they showed evidence that they will survive in this hybrid world of work. three million mobile users. then the big tech story, a bloomberg scoop, broadcom, according to sources, could announce a deal to cloud software -- to buy cloud software platform vmware as soon as this thursday. see the reaction, vmware up 25%
during monday's session to $120 a share. according to the wall street journal, the offer price could be $140 a share. a real premium even to where we closed on vmware, 25% to $19, $120 a share. as is often the case, broadcom down. emily: let's talk more about the broadcom deal. i want to bring in bloomberg's leanna baker who covers m&a. first of all, tell us what we know and what we don't know at this point. >> we know broadcom is in talks to buy vmware in a blockbuster deal. we don't know the exact price but before the story shares were trading valuing vmware at over $40 billion. so this is really going to be a large one. the deal is probably imminent. it is going to be one of the
biggest tech deals in years. emily: if we are looking at a potential $60 billion valuation per vmware as part of this deal, who wins and who loses in this? james: thank you for having me. look, it is a story for broadcom and talking with my colleague where they have done a tremendous job of rolling up software assets. they did a small one last year. at the end of the day, the playbook that the ceo of broadcom runs fits well with vmware. for the most part we see vmware as complementary to the existing software segments that they have. there is some overlap, especially as you start to think about the carbon black deal that vmware did with symantec. but overall, vmware has been a drag versus some of the other s in infrastructure because of
the divestiture overhung, because of the move towards public cloud, and because of the ongoing transition. so it could be a win-win for both sides. emily: how close is this to being a done deal? i know we are reporting it could potentially happen this week. liana: it's funny, with broadcom, you never know. last year they were close to a deal valued close to $20 billion and it fell apart. and three years ago there were close to buying symantec, and it also fell apart. so you never know what broadcom. but this one from what we know, it is still in talks, not in danger right now of falling apart. but the deal is not done until it gets to the finish line. as you know with elon musk and twitter, even if you get to the finish line, it may not be a done deal. emily: exactly. qualcomm, broadcom tried to buy qualcomm in 2018, which also would have been a massive deal. that didn't happen because of trump administration concerns
about headquarters in singapore. but we caught up with the ceo earlier and asked his thoughts on this potential tie up between broadcom and vmware. take a listen to what he had to say. >> it is really for broadcom to comment. but the way i look, broadcom has become more of a software company. some of the acquisitions they have made in the past, and i think vmware is a software company. we are going in a different direction. we will continue to be a semiconductor company focused in the growth that we have in this industry. especially at the edge. and we continue to see not consolidation, but convergence of all of those opportunities. emily: james, broadcom's ceo as ambitious and seemingly inquisitive as ever. is broadcom even a chip company anymore, or is it more of a software company? james: to be fair, i don't cover broadcom. but the chip part does still
overwhelm the software piece. but when you think about it, you have roughly 7 billion dollars, $8 billion on the software side. when you look at what vmware could do, it would triple the size of their software business and bring it more in line with the semiconductor side of the business. emily: so, liana, obviously that qualcomm deal never happened because of regulatory issues. will there be regulatory hurdles to this deal or could someone else come in and make a play for vmware? liana: any time you see a deal on the cusp of being announced, there is always a potential for some sort of interloper or a bidding war, but for now all we know it is broadcom and vmware at the negotiating table. in terms of regulatory scrutiny, there is no deal right now in the tech world that will not get a hard look from washington. but there is not a huge overlap. as james said, there are some assets, but generally these companies don't compete with one another. i know that vmware has some interesting contracts with amazon.
i think that is something that could also get a look. and remember, broadcom has operations in china. so this might require a review. that could be a protracted long slog. but in terms of regular antitrust, i don't see many hurdles. the ftc has looked into broadcom's business practices before, so, many different regulatory bodies will be reviewing this one. emily: james, what do you make of the fact that this is happening in the midst of a tech selloff? do you expect more big deals of this nature? james: it's a good question. actually i wanted to comment on that point there, it probably does trigger the chinese regulatory because vmware has a big business there that would be over the threshold rate that is typically assigned there. so we would expect china to be somewhat involved in the approval process. meaning it could be done. there are very few companies
with the size of vmware in this case. it is something some hyper scalars would have a challenge in getting this deal done. so it kind of removes them, to a degree, from the equation. i would not say it is impossible but it does present some problems on that. but it is the case where, at the end of the day, broadcom makes a lot of sense. and for really what needs to get done here, we see a pretty smooth process, it just might take some time. yeah. emily: all right. thank you both. coming up, airbnb is getting out of china. we are going to talk more about this and the market volatility its lasting impact, ahead. this is bloomberg. ♪
emily: airbnb is closing its business in china, according to bloomberg sources. chinese tourists traveling abroad have been a big opportunity for airbnb with its domestic business in china accounting for its revenue. that ceo addressed this in my last interview with him on bloomberg television. take a listen. >> you know, our china business has primarily been people in china leaving china, crossing a border, so it is cross-border travel, going to other countries. japan was a popular corridor. south korea.
they are going to europe and they are going to other places. because of the situation in china and covid, there is not a huge amount of outbound business, so our business is not super robust in china and it will probably be a while. it will track with the health crisis. emily: all mainland chinese listings will be taken down by this summer, according to sources. speaking of airbnb, ceo brian chesky tweeted a number of times about the difficulties facing tech and startups in particular, given the volatility in the markets. for more on this and just how low things could go, i am joined by the chief investment officer at richard bernstein advisers which has about $15 billion in assets under management. thank you so much for joining us. did we just hit the bottom and are we on our way back up, or is there a lot lower we can go? guest: well, i think the reality is that nobody really knows for sure.
but i would say that you don't want to jump in here simply because you are going to get these big moves in markets on both sides. but it all comes back to us. why would you buy? i think it is when the data tells you you should buy. the issue that the markets have is despite the fact you have had this selloff, profits are still slowing. liquidity is still tightening. and valuations may have come down a little bit but they are still elevated in some parts of the market. that is not a combination of the factors that tell you you want to jump in feetfirst into the markets even though you think they have gotten cheaper. emily: let's talk about tech in particular. what kind of a roller coaster do you expect tech itself to be on in the next weeks and months? dan: to be honest, i think that we're in the early stages of a new paradigm and a new secular leadership in stocks and that is not going to be the same as the leadership in the last 10 or 15 years.
investors always invest in the rearview mirror. but this is probably a time given the huge shifts, the tectonic shifts in the macro backdrop that are screaming. the backdrop is changing. it should be obvious that the leadership of markets is going to change with all of this happening. i think this will not be a short-term thing. we have been saying that tech, innovation, and disruption, while we believe in the story, people got ahead of themselves in terms of the valuations and in terms of the expectations. and it has created a bubble, and the bubble is in the process of deflating. you look at the history of bubbles, they don't quickly and softly correct over a six-month period, it typically takes longer and they usually go down more than what we have seen so far, despite the fact that you have sometimes monster rallies on the way down. i would not be jumping in here
like some others are saying that this is the buying opportunity of a lifetime. i just don't think so. emily: we are just getting headlines from a new filing that just came out from snap, saying that they are expecting their ebita and revenue in the second quarter to come in at the low-end of their guidance, saying that the macro economic environment has deteriorated much more quickly than they thought. what do you make of this? dan: well, i think there are two important takeaways here. one, this is just another example of companies' results in last earnings season or two that have had to bring down these unattainable, unrealistic investor expectations down to earth. i think the two unrealistic expectations have been that you will continue to see growth at the same trajectory you have had over the last two years, or secondarily, that all of these companies will be winners. i think you are seeing company after company tell you that will not be the case.
underlying growth is slowing as these companies mature and it gets more competitive. and that is one thing. the second thing that i think is critical is the market continues to underestimate the economic sensitivity of these tech stocks. when you think about it, if the economy starts to slow, you will cut the number of streaming services you will use, companies will cut their advertising spending, they are going to have less software investments. you are going to buy less discretionary, expensive technology goods. and so technology is very cyclical, it just was not during the pandemic, and so as growth continues to slow, that will be a headwind. the big issue is not just that things are going to slow, but expectations are not there yet. that is why you get these big ratings as you rerate expectations. emily: so, snap shares are now down 22% after hours. we are going to continue to follow that. i would love to get your
thoughts on this potentially pending deal between broadcom and vmware. it would be a massive consolidation in the tech space. do you think we are going to see more m&a like this, given the environment or not, given what we are seeing is a huge premium on where vmware is trading today? dan: yeah, i think if you think about just overall trends, it is not out of the norm to see this type of action. typically, what you see with companies, the way companies act, it is very similar to the way investors act. and so that is why you see share buybacks tend to peak at market highs. m&a activity tends to peek at peaks of markets. and even after things start to roll over, you tend to see a lot of momentum with investor activity as well as company activity because they think they are getting a big sale price on these assets. and i think that that is kind of what you are seeing today. that will probably dry up, and
that will be the sign that you are really starting to see things rollover net your aging that bottom. emily: we will continue to watch all of this. dan suzuki, richard bernstein advisors, thank you for sharing your perspective with us. coming up, we will hear from the intel ceo in davos, plus his thoughts on the vmware deal given he was previously ceo of vmware. this is bloomberg. ♪
how will your business adapt to change? you could hire an office full of peyton mannings. what's up, peyton? good morning, peyton. hold for peyton. they'd huddle.... welcome to the peytonverse. such a visionary. game plan... you go. no, you go! and call audibles... double our investment in omaha! omaha! omaha! omaha! or you could use workday. omaha. the finance, hr and planning system used by over half of the fortune 500. for a be-agile-like-an-mvp world. workday. for a changing world. emily: continuing our coverage of a potential acquisition of vmware by broadcom, we spoke with the intel of d.l. from davos. he was the former ceo of vmware. here he is with my colleague haslinda amin, talking about all all things also chip supply. pat: we definitely think the supply-demand balance is 2024. and a year ago i said 2023.
since then we have seen a number of equipment supply chains move out. overall, 2024 until we start to see a reasonable balancing of semiconductor supply chain. haslinda: so it will get worse before it gets better? if you look at the ports in china, you are looking at 50 to 60 ships waiting to unload, and that is causing a lot of headaches. pat: yes, the supply chain issues we've seen in china. but it comes on the back of many other supply chain issues. we are already beaten down and we have to work through it. and maybe the softening of the economy, a little bit of consumer softness gives us a bit of breadth. but we are still out for 2024, a nd obviously the shanghai ports have created a bit more turbulence we are managing through near term. haslinda: we talk about a slowdown. a global slow back, although we have seen pushback from kristalina georgieva saying that we are not thinking about a global recession. but definitely a slowdown.
would that mean a disruption? what assumptions are you making? pat: we definitely see a softening on the consumer side. haslinda: how much softening, can you give a number to that? pat: meaningful. a number of percentage point softer there. we were expecting the pc industry to be up a couple of points this year. now it is may be down one point. so, a meaningful swing. on the business side and enterprise and commercial side, no change. continuing to have real strength in those areas of the market. i think with inflation concerns, tightening of monetary policy, these continuing supply chain challenges, yeah, things are probably going to be a little bit choppy for a couple of quarters. haslinda: you're also reviewing where you produce your chips, in fact, you are making europe as well as the u.s. a priority. and perhaps that message is resonating even more, given what we're seeing in china. how is that coming along? pat: well, we are all in on the
rebuilding on what we have called the geographically-balanced resilient supply chain. where, this industry was 80% in u.s. and europe 30 years ago. now it is 80% manufactured in asia. what happened? and it was never -- i was in washington last week and i joked to some of the congressional leaders, we never voted to get rid of this industry, but those countries voted to get this industry. and they put strong packages in place to attract this industry there. and now we see that, oh, we're way too dependent on too few places in the world. and haslinda, what aspect of your life is not becoming more digital? everything is becoming digital! right? my consumer, my health care, my transportation, how i work, how i live, and everything digital runs on semiconductors. as i say, where the oil reserves are defined geopolitics for the last five decades.
where the fabs are is more important for the next several decades. let's build them where we want them, and do what's in a way where we have more resilience to the supply chain. haslinda: it is all great that you want to make the u.s. and europe a priority, but it is also about scaling and scaling quickly. how soon can you get there? pat: we have announced the ohio expansions, arizona and europe, expansion in germany, new research in france, expansions continuing in ireland. and what we are really now anxious to see is that the u.s. and the e.u. chips act gets completed and that allows us to make those good, economic investments. because part of the challenge is that we are competing with countries that have very actively invested in asia. these investments have to be competitive worldwide or i cannot compete for the worldwide market. so that is what we are looking for, the e.u. leaders as well as
the u.s. leaders to get this done so we can go faster. haslinda: for our radio listeners, we are speaking to pat gelsinger, intel ceo, here in davos. we are talking about how we want to ramp up production in the u.s. and europe. what kind of government support are you seeing, are you getting, and is it enough? pat: the u.s. chips act, $52 billion, the european chips act, 45 billion euros. and as we have looked at those programs and we have helped to shape them, they make us competitive in the world. we feel very good that these are very good steps forward. and it is against what i call the moonshot. and by the end of the decade, our objective is that we go from 80-20, 80% asia, 20% u.s. and europe, to 50/50, 30% u.s., 20% in europe, 50% in asia. that is the goal that we are driving these for. these are great steps forward. and if they are being successful, we can drive towards
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emily: welcome back to "bloomberg technology," i'm emily chang in san francisco. back to breaking out of snap. company shares plummeting in late trading here in the u.s. after cutting guidance for the current order. last i looked down, more than 22% saying the macroeconomic environment has deteriorated much more quickly. >> first quarter earnings gave guidance and they started -- advertisers held up and a lot of young people stuck with snap at a time when they were not sticking with facebook. but things change area particularly in the context of the war in ukraine. what we are hearing from snap is that it has gotten worse. our revenue in the second quarter, adjusted earnings before interest will be at the lower end.
revenue said 20% to 25%. emily: and this is also across other social media sites. twitter who does not need anymore bad news. ed: it does not need any more complications. back in april we were digesting earnings and thinking snap was a bright spot. we did see movement in other spots. they all have tight fates when it comes to advertising. this is worrying, especially for facebook where snap has had a growth, facebook has stagnated its growth. it would be a concern for some of the other social media platforms. emily: it was interesting. snap tied the lower numbers to the war in ukraine. it seems like it would be more directly tied to coming out of the pandemic and having less disposable time to sit around and look at social media. ed: the thing when you cover social media stocks and companies, we forget how they make money. advertising revenue.
we are fixated on how many users they do or don't have, or how their growth is. but advertisers have other reasons to pull money. if they don't have confidence in the global economy, they might hold off on spending. they are targeting people with those ads. you see alphabet, the parent company of google and youtube hit by the solar impact. emily: ed ludlow, thank you for the update. we are watching so many tech companies trying to navigate the selloff. i next guest is one of software's biggest success stories but they have not been immune to recent volatility. the ceo and chair of adobe. great to have you back with us. it has been a while and the world has changed a lot. i need to get your reaction to the latest selloff. we are talking about what's happening in snap, but big tech more broadly as well. what is your outlook given you
have been in this industry for a couple of decades? >> it is great to be back on your show. it has been a couple of years. a big picture for us. the move towards digital is an absolutely critical imperative. the truth is that digital is changing everything from entertainment to work to play. i think we are at the center of all of those secular trends. some of the companies reporting, i don't understand what their business cycles are. but we continue to innovate. and our market opportunity continues to grow larger and larger. emily: some folks are comparing what we are seeing right now to the dotcom bust. i'm wondering how you're putting this into context. what is your assessment of the macroeconomic environment? and the circumstances beyond
your control whether it is inflation, rising rates, or an ongoing war. shantanu: a couple of thoughts come to mind. the first is that we have been through this incredible macroeconomic bull period for the last few years. to some degree, the business cycle is absolutely critical. that is happening as a result of the backdrop of what happened both in the pandemic and with the war in ukraine. i believe that what this will cause is a number of companies that are single-product companies that may not have the depth and breath of other companies will be shaken up. you see a normal period where they go through a boom and everyone believes it's because of them. and you realize who will be the true secular winners. i think adobe will be part of it.
when we think about an opportunity like this, first, are we continuing to innovate on behalf of our customers? we have a tremendous balance sheet and tremendous opportunity. don't do anything that is short-term focused and continue to focus on making sure that we drive the company long-term. i think for the single product companies, it will be a trying period. on the macroeconomic environment, a lot of those companies haven't learned how to deal with that. emily: speaking of innovation at adobe, you just launched creative cloud express. most folks know adobe for its signature photoshop project which is facing increasing competition from canberra -- canva and literix. how do you hold off market share gains to some of these competitors for this iconic
product in your portfolio? ed: we created -- shantanu: we created three categories. when you create three large categories the way we did, our vision of enabling anybody with a story to tell to tell their story. and at the other end of the spectrum, enabling every single business to engage with their customers digitally, and in the middle what we do with automating document productivity, these are massive markets. and we are going to win because we create these markets. we have a vision for the market. when you create these opportunities that are hundreds of billions of dollars, you will see other companies. the way we focus on it on the creative side, we have an incredible portfolio. for people who are communicators or consumers, it's the breath of our offerings that will continue to make sure that adobe is at the forefront of all of those massive opportunities.
emily: you have $5 billion in cash, are you eyeing any acquisitions? we talked about a potential deal between broadcom and vmware. shantanu: adobe always looks for economy. what is happening in the market, there will be a number of companies. we are always judicious and thoughtful in terms of the acquisitions we made. we made a couple of acquisitions that turned out to be phenomenal in the collaboration space. we bought a company called frame io that allows anybody doing video collaboration to collaborate. we also bought work front that allows anybody creating marketing campaigns to be far more efficient. we are always looking at we are very pleased with the portfolio
of products that we have. we will continue to take a look. we continue making sure there is great technology and a culture match. emily: i'm curious how bullish you are on the metaphors, how big a rolet will play in the -- how big a role you think it will play in the future, and what adobe's role will be in it. shantanu: the way that i describe the metaverse is it is increasing. things that people did in the physical world, increasingly they will do in the virtual world. and i think that trend continues. our message to all of our customers are, creating these metaverse experiences is significantly more difficult. on the offering side, we are working with companies like meta, google, apple, or microsoft. for all of these new worlds, we have the best creative tools in
the world. for people that want to have their brand on these different environments, it is time for you all to stop the process of creating these 3d assets. -- to start the process of creating these 3d assets. creating interactions, creating interactivity in the metaverse. and a couple of the leading edge companies, we are co-innovating with them to create a brand-new service or brand-new offering. i think depending on where you are in that journey and which business you are, you have to stop and take it more seriously. as i said, it's a reflection of everything people are doing in the physical world. and gaming is probably the space where you have seen the most progress thus far. emily: ceo of adobe, great to have you with us. hopefully we can do it again before another two years pass. coming up, once the crypto darling coinbase now crashing hard.
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emily: it's time for our crypto report and i want to look at coinbase which has gone from one of stockmarkets biggest debuts to one of its most spectacular crashes all in a little over a year. coinbase seeing a bit of a hike but shares are still down about $66 apiece, way down from the $319 hi back in november of 2021. i want to get into this more
with rebecca, offering global access through institutional trading, mining, and investing. what do you make of coinbase in particular as a microcosm of what is happening in crypto more broadly? rebecca: we have to remember that crypto is in the preteen phase as a kind of financial system. and digital asset class. it is important to know that volatility is a huge part of emerging technologies. it is interesting to know with coinbase is the price to earnings are quite high. as we see often in the stock market, you can have great earnings or the stock still plummets. i still see negative impacts of the very notorious stablecoin failure, if you will, with tara luna recently in the last couple of weeks causing a lot of panic from retail investors. in looking at coinbase as kind
of a definition of crypto in the market, seeing some of those downturns. emily: how long would you say this crypto winter is going to last? we talked to a guest last week that thanks, don't expect bitcoin to start taking backup for 12 to 18 months. rebekah: i think it's possible. if i had an oracle and would tell you definitively, i would let you know. but what happened in crypto is the lows are getting higher and they are getting shorter. it's kind of the same with the early stock market, right? they last a lot longer in the early stage and start to get a lot shorter. i would bet bitcoin and a theory are not going to zero. we just see the impact of news that is been happening and even the global markets. the many guests on your show discuss different macro trends
at work, the external events affecting everything. crypto is not the only thing being impacted. we see a lot of tech stocks fall 70% as well. depending on how you judge it, the tech stocks can be more volatile than crypto right now. emily: how is this impacting institutional appetite to expose themselves to more crypto assets? we were seeing that build up to this point. but our institutional investors starting to get cold feet? -- but are institutional investors starting to get cold feet? ed: -- rebekah: they are starting to service investors getting into crypto. we have retail investors that might be new were investors and they see downturns like this and they panic sell and get frustrated.
this becomes a huge opportunity for institutions to get in at a more palatable price point. some of the largest crypto wallets have been amassing a lot more of top-tier crypto. i would say that this is one of the times that different funds, folks that have been allocating slowly, investing over time, this is a good point for them to get back in at a price that is a bit more reasonable. emily: meantime, you have venture capitalists looking to fund the next big crypto thing. when you look at a company like coinbase, is that a matter of just the market, or is that some measure of for execution -- poor execution? rebekah: with coinbase specifically, they have definitely done a lot of hires. when it comes to business execution, i think it's easy for companies to get into this place of over-hiring for lots of
positions that they can't necessarily derive a lot of value from at the time. we have seen that with crypto companies, tech companies, and often times it takes the wind out of their sales, if you will. it can be a bit about poor business execution but that happens all the time, unfortunately. emily: rebekah keida, xbto, thank you for joining us. coming up, disrupting your office wi-fi. that is the grand plan of the startup heater. could it be silicon valley's next big thing? anil varanasi joins us next. this is bloomberg. ♪
it is a harder set up then you might think. the founders of meter think it is the next big opportunity in big tech. it makes all of its own hardware and software to that end. heavyweights from sequoia and silverlake to vmware and stripe. here to talk it all is anil varanasi. what are the problems with office wi-fi we do not quite understand? anil: every business runs on conductivity. most companies don't build their own data centers. it is time consuming and difficult. what we think it should be like is similar to a utility that when you go into a space like you turn on electricity or water, it just works. what we are seeing is that every business increasingly is reliant on software technology. and frankly, we don't think that will slow down at all. for all this to work, we need great internet infrastructure
across all of the different market sectors. emily: you want internet service and infrastructure to be a utility. what do you mean by that? isn't it already kind of a utility. anil: outside of the space, it truly is. but inside a space, if you are setting up a warehouse, science lab, health care, office space -- it takes months and you have to deal with so many different vendors. and you have to take on the complexity of maintaining these really old systems. what we do is make all of that go away so that customers can just go on with building their own business. emily: more broadly, is there a redistribution happening of how we use wi-fi given the shift to remote work? more people working at home? aren't less people working in the office today? anil: we certainly service customers in offices and in warehouses, life sciences, and
elsewhere. think about the last two years were we all ordered stuff through e-commerce. that comes from a warehouse with robots, sensors, and computers where everything runs off the internet. they don't run on internet networking and wi-fi -- emily: i have heard some interesting comparisons to you all and the collison brothers that cofounded stripe. talk to us a little bit about your story and why you chose to take internet infrastructure on when it could have been just about anything. anil: fundamentally, what we saw was something we wanted to solve ourselves. as we talk to different companies that are stalwart technology companies, we increasingly saw them spending a
lot of time and capital. but even if we take a step back, we have heard about software leading the world and technology everywhere. i'm sure your kids watch youtube or twitch or we order something. all of those needs have an infrastructure to function. it's important to get that right as technology grows over the next decade. emily: let's talk about dollars. it we know you raised a new round of funding. how many billions of dollars do you think are up for grabs? anil: this is probably one of the largest markets. there have been some noteworthy companies for decades now. rather than thinking about just a particular market segment, what support to look at is the billions of square feet that are in all of the segments that
require internet infrastructure. every type of space you see as you are driving by, walking down main street, or think about a company you work with or customer of, those are all customers or potential customers. emily: is there a number you put on it? anil: not really. it's probably in the tens or hundreds of billions. but the point earlier where i was saying, it is currently one of the largest markets and increasing every year as all of these other technology companies become successful and every company becomes a technology company. emily: anil varanasi, cofounder and ceo of meter. we will keep an eye on you have that big potential opportunity ahead. for we go, two of the big tech stories that broke late in u.s. trading today. snap shares falling after it cut revenue and profit forecasts below the low end of the
guidance. the company seeing the macroeconomic environment interior rating further and faster than anticipated. we also watched zoom report its results. it topped estimates. coming up tomorrow on "bloomberg technology," we will talk about all these trends and earnings with zoom ceo kelly steckelberg. and we will talk with max peterson on the future of the cloud. that does it for "bloomberg technology." i'm emily chang in san francisco. this is bloomberg. ♪
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