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Gartner Optimistic About Visual Search As an Emerging Technology

11/10/2019

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Visual search – the ability to initiate a search query using an image captured by the camera lens on a mobile device – has increasingly become a channel that can drive consumers from becoming aware of a product to making a purchase.

Gartner classifies visual search as an emerging technology, which puts it right on par with findings from an eMarketer survey suggesting that few consumers "regularly" use it.

On average, only 3% regularly use visual search, and only 10% have used it in the past, according to the findings. On the other side of the spectrum, 7% are familiar with the technology, according to an eMarketer eCommerce survey conducted in June 2019 by Bizrate Insights and published in August 2019.

Gartner Analyst Mike McGuire points to artificial intelligence (AI), which sits high on the list of transformational trends, as an important technology that supports visual search platforms like Google Lens and Prism.

Google, Microsoft, Pinterest, and other augmented reality vendors continue to invest in visual search. Their platforms use computer vision and AI to identify the image.

ASOS, a U.K. online fashion retailer, already uses visual search. Its search tool, Style Match, integrates into the ASOS mobile app, so customers can zoom in on a man’s suit in a magazine picture, for example, and receive suggestions on similar suits, McGuire explains.

McGuire calls visual search a tool that will enhance the customer experience, benefiting brands most in e-commerce, content marketing, product, and search marketing. Amazon also supports this media.

Recently, Mondo released a study showing that 21% of the 1,000 marketers surveyed cite visual search as an essential marketing strategy for their organizations through 2020. Visual search fell in line behind strategies such as experiential marketing, micro-moments, and motion design.

Gartner rated visual search as an “on the rise” strategy, along with over-the-top TV advertising, consent and preference management, and personification.  
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At the peak are advanced supply-side bidding, customer journey analytics, real-time marketing, conversational marketing, artificial intelligence for marketing, and customer data platforms.

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How Microsoft Is Courting Retailers to Compete with Amazon

9/8/2019

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The acquisition, though small, is the latest in Microsoft’s attempts to level up with Amazon. Over the last few years, the company has garnered individual partnerships with retailers, which has laid the groundwork for marketers to see it as a potential alternative to the Jeff Bezos behemoth. Still, Microsoft has a long way to go: Amazon has a substantial leg up on both advertising (which brought in $3 billion this past quarter) and cloud storage (which hit $8.38 billion in Q2 of this year). Adding PromoteHQ – which has clients that include Overstock.com, Office Depot, and Kohl’s – indicates that Microsoft is strategizing about how to expand and undercut the competition quietly.

Until now, Microsoft has had to face Google as its primary advertising competitor. The acquisition hints at Microsoft’s ambition to go beyond search. Bloomberg estimated search would bring in about $7.9 billion in annual revenue for the fiscal year 2019, a drop in the bucket compared to Google’s $120 billion in annual ad sales. Earlier this year, Microsoft announced it was changing its ads name from Bing Ads to Microsoft Ads, which also implied that it had grander horizons beyond mere web search, which Google will almost certainly always dominate. Indeed, the PromoteHQ purchase is a way for Microsoft to go beyond search in its quest to court retailers – effectively providing a platform so that brands with e-commerce sites can run ads on their own storefronts.

Microsoft over the last few years has become a quietly growing alternative to the ever-growing Amazon behemoth, something that retailers squeamish to do business with Amazon would welcome. Even though Amazon Web Services has about one-third of the cloud market share, retailers have been inking long-term contracts with competitors like Microsoft to try to chip away at the e-commerce giant’s bottom line. Kroger, for example, has signed significant agreements with both Microsoft Azure and Google Cloud. With that, the grocery chain announced that it was working with Microsoft to build out in-store technology – including a connected store experience and digital shelving that would serve shoppers personalized ads. Walmart too has reportedly told vendors it wants them to stop using AWS.

There are other examples too. Walgreens also signed a long-term deal with Microsoft, as have Walmart and Gap.

“What Microsoft has done well over the last three to five years,” said Ray Wang, principal analyst at Constellation Research, “is [work] with retailers.” But what it’s been very weak on, he said, is advertising. These incremental moves over the last few months – the Microsoft Ads rebrand, as well as acquisitions like PromoteHQ – are setting the groundwork to work with retailers on multiple fronts, including advertising. “Every retailer feels they have a gun to their head from Google, Amazon, and Facebook,” Wang said. “There’s a unique opportunity for Microsoft to be in this space.” Of course, other software giants working with large companies are likely trying to follow suit, such as Salesforce, Adobe, and Oracle,” Wang added.

All of these announcements are piecemeal, but they do add up to a more significant strategy. Retailers want to rely as little on Amazon as possible while growing their e-commerce businesses, and Microsoft has laid the groundwork to offer solutions that are direct alternatives. Meanwhile, as Microsoft continues to make individual long-term deals with big retail companies, it puts it in the position to have future clients as it increases its advertising and software offerings.
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For retailers, forgoing Amazon could become an almost moral imperative. By doing business with them, said Wang, “you’re giving [Amazon] the ability to crush you.” Thus, if Microsoft were to continue to play to these fears – and focus on more retail-adjacent products like PromoteHQ – its business stands to grow even more.
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Global Survey Outlines the Next Wave of Technology Disruptors

8/18/2019

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Frost & Sullivan's Information & Communications Technology (ICT) team conducted a small-scale survey, Global Next Wave Technology Disruptors, 2018, of 112 thought leaders from around the world to seek opinions on the technologies that will have a profound transformative impact on existing industry dynamics, value chains, and business models across multiple vertical markets in the next 10 years.

In addition to providing quantitative insight, the study also provides a top-level assessment of eight emerging technologies: 5G, Artificial Intelligence (AI), Blockchain and Distributed Ledger, Human Brain-Computer Interface, Human Intelligence Augmentation, Internet of Things (IoT), Natural Language Interfaces (NLIs) and Quantum Computing.

"Numerous technologies with limited adoption/availability at present will rise in relevance over the next ten years. 5G will play an important role over the next five years as commercial deployments commence, while Quantum Computing is set to have a huge impact in the coming decade," said Adrian Drozd, Research Director, ICT. "However, thinking of these emerging technologies in isolation will limit their effectiveness. For instance, IoT cannot reach its potential without AI, and AI can be powerful only by accessing the data generated by IoT."

"Technologies will reach maturity at different times; while some are already widely used, others are still in the development phase," noted Drozd. "Technology development should be guided by the use cases and real-life deployments that the solutions promise to enable."

New technologies are emerging at an unprecedented rate, each promising to be the next transformative force that will drive fundamental shifts across industries and society. Companies looking to tap growth opportunities in their respective sectors should consider joining Frost & Sullivan's global IoT & Digital Transformation Growth Partnership Service program.

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Casinos Are Using AI for Even Greater Advantage

8/4/2019

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Casinos and gambling websites, already adept at tilting long-term odds in their favor, are getting a leg up from technology that could inject even more certainty into their profit calculations.

The Catch. Experts worry that tweaks nudging gamers to play more – and bet bigger – could propel some toward excess and addiction.

The Big Picture. AI and data analytics are making it easier to forecast even the most uncertain outcomes. Technology firms have built a massive new economy on the ability to predict people's behavior accurately.
  • For marketers, this means unprecedented access to the tiny, personalized levers that are most likely to get you to buy or do something.
  • If you're being sold ice cream, no big deal. But for the millions of people with gambling problems, a lot can ride on a $50 offer for free play or a comped hotel stay – perfectly tailored and timed to hit home.
  • https.//www.leg.state.mn.us/docs/2018/mandated/180251.pdf

"For youth or players with serious gambling problems, the negative impacts of AI-based marketing and gambling operations can be devastating and even life-threatening," says Keith Whyte, executive director of the National Council on Problem Gambling.

What's Happening. Where pit bosses once kept tabs on players and doled out offers by feel, technology is now supercharging marketing and promotions that best influence each gambler.
  • Casinos are "tracking everything you do," says Andrew Engel, general manager for gaming at DataRobot, an AI startup. "They know how much you're in for, how much you play, how long you play, what types of games you like to play." 
  • They've been collecting information for decades, mostly through longstanding loyalty programs. "It's a hell of a lot of data," says Anthony Chong, CEO of data analytics startup IKASI.

Details. To entice people to spend more, casinos use their troves of data to tweak every aspect of the gambling experience – from marketing and casino layout to the incentives and freebies that get people through the door and then keep them inside. 

"From a public health perspective, this is a big concern," says Silvia Kairouz, director of the Lifestyle and Addiction Research Lab at Concordia University in Montreal.
  • "The vast majority of gamblers gamble with a budget," says James Whelan, co-director of the Institute of Gambling Education and Research at the University of Memphis.
  • But for the minority prone to gambling problems, targeted marketing "can be destructive," Whelan says.
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What Casinos Are Saying. Casino defenders say the worries are overblown, and that analyzing playing data can help problem gamblers rather than hurt them.
  • "I don't believe that more efficient offers are just all of a sudden going to trigger problems for large numbers of people," says Alan Feldman, a former MGM executive who chairs the Nevada State Advisory Committee on Problem Gambling.
  • Several companies, like BetBuddy and Mr. Green, say they can automatically flag problematic gambling habits based on dozens of risk factors and intervene.
  • "The industry is constantly exploring new and emerging technologies, like artificial intelligence, to gain a deeper understanding of our customers and provide the right resources for our customers to enjoy our products responsibly,” says Elizabeth Cronan of the American Gaming Association.
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Salesforce Buys Data Visualization Company Tableau for $15.7B

6/16/2019

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On the heels of Google buying analytics startup Looker last week for $2.6 billion, Salesforce today announced a huge piece of news in a bid to step up its own work in data visualization and tools to help enterprises make sense of the sea of data that they use and amass: Salesforce is buying Tableau for $15.7 billion in an all-stock deal.

The latter is publicly traded, and this deal will involve shares of Tableau Class A and Class B common stock getting exchanged for 1.103 shares of Salesforce common stock, the company said, and so the $15.7 billion figure is the enterprise value of the transaction, based on the average price of Salesforce’s shares as of June 7, 2019.

This is a significant jump on Tableau’s last market cap ($10.79 billion two days earlier.)

This is a massive deal for Salesforce as it continues to diversify beyond CRM software and into deeper layers of analytics to offer a 360-degree view of the customer and become a de facto data stack for the enterprise.
The company reportedly worked hard to buy LinkedIn but lost out to Microsoft. While there isn’t a whole lot in common between LinkedIn and Tableau, this deal will also help Salesforce extend its engagement (and data intelligence) for the customers that Salesforce already has — something that LinkedIn would have also helped it to do.

Even with Google’s move to buy Looker, one could argue that analytics is a big enough area that all major tech companies are getting their ducks in a row with stronger data analytics strategies and products. It’s unclear whether the two deals were made in response to each other, although it seems that Salesforce has been eyeing Tableau for years.

 “We are bringing together the world’s #1 CRM with the #1 analytics platform. Tableau helps people see and understand data, and Salesforce helps people engage and understand customers. It’s truly the best of both worlds for our customers – bringing together two critical platforms that every customer needs to understand their world,” said Marc Benioff, chairman, and co-CEO of Salesforce. “I’m thrilled to welcome Adam and his team to Salesforce.”

Tableau has about 86,000 business customers, including Charles Schwab, Verizon, Schneider Electric, Southwest and Netflix. Salesforce said Tableau would operate independently and under its own brand post-acquisition. It will also remain headquartered in Seattle, Wash., headed by CEO Adam Selipsky along with others on the current leadership team.

Indeed, later during an analyst conference call, Benioff let it drop that Seattle would become Salesforce’s official second headquarters with the closing of this deal.

That’s not to say, though, that the two will not be working together.

On the contrary, Salesforce is already talking up the possibilities of expanding what the company is already doing with its Einstein platform (launched back in 2016, Einstein is the home of all of Salesforce’s AI-based initiatives.) 

“Joining forces with Salesforce will enhance our ability to help people everywhere see and understand data,” said Selipsky. “As part of the world’s #1 CRM company, Tableau’s intuitive and powerful analytics will enable millions of more people to discover actionable insights across their entire organizations. I’m delighted that our companies share very similar cultures and a relentless focus on customer success. I look forward to working together in support of our customers and communities.”

“Salesforce’s incredible success has always been based on anticipating the needs of our customers and providing them the solutions they need to grow their businesses,” said Keith Block, co-CEO, Salesforce. “Data is the foundation of every digital transformation, and the addition of Tableau will accelerate our ability to deliver customer success by enabling a truly unified and powerful view across all of a customer’s data.”

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What Your Car Will Know About You

6/2/2019

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Cars will soon be able to recognize you by your eyes, skin, gait and even your heartbeat, enabling a host of personalized experiences but raising troubling privacy questions, as well.

Why it Matters. New biometric technologies being developed by automakers will authenticate your identity and help keep you safe by also monitoring your health and wellbeing. But unless carefully guarded, that personal data can also be easily exploited by cybercriminals.

What's Happening. Automakers and their suppliers are working on a variety of driver-identification technologies such as facial and iris scans, as well as voice and fingerprint tracking.
  • They would enable a driver to start the engine without a key and the car would automatically adjust the seats, mirrors, climate and audio settings.
  • The car could then also communicate with home automation systems, turning on lights or opening the garage, for example, and automatically pay for tolls, parking or gas.
  • For autonomous vehicles and car-sharing apps, ID verification is important to ensure passengers get into the right vehicle and are who they say they are.

What's Next. Such ID features are coming in the next year or so, followed by a second wave of more advanced biometric technologies. Goode Intelligence says the market for automotive-related biometric content may reach nearly $1 billion by 2023.
  • An alcohol detection system that could be available as early as next year would know whether a motorist is drunk by gathering a whiff of their ambient breath. The system is being developed by a public-private partnership.
  • B-Secur is marketing its Heartkey technology that can identify a driver by the unique rhythm of their heartbeat, and measure their level of stress or fatigue or even detect early signs of a stroke or heart attack, CEO Alan Foreman tells Axios.
  • Aerendir Mobile's sensors capture micro-vibrations – tiny muscle twitches from cells in the human nervous system – to identify individuals and monitor their well-being by creating a neurological signature that's akin to a million-character-long password, founder Martin Zizi tells Axios.

Yes, But. Just as facial recognition systems are sounding alarms about privacy and human rights, biometric technologies in vehicles raise privacy concerns, experts say.
  • Biometric information can be particularly revealing and immutable, Lauren Smith, senior counsel for the Future of Privacy Forum, says. Unlike a password or account number, you can't change your biological makeup.
  • Without federal laws on bioprivacy, carmakers need to abide by state data-protection laws, many of which require notice before biometric data is collected, and the ability to opt out.
  • Carmakers that signed the Automotive Privacy Principles created a higher, opt-in threshold for biometric information, requiring consent before data can be used for marketing or shared with others.

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Little Translator Gadget Could Be a Traveler’s Best Friend

5/26/2019

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If you’re lucky enough to get to travel abroad, you know it’s getting easier and easier to use our phones and other gadgets to translate for us. So why not do so in a way that makes sense to you? This little gadget seeking funds on Kickstarter looks right up my alley, offering quick transcription and recording – plus music playback, like an iPod Shuffle with superpowers.

The ONE Miniis not that complex of a device – a couple of microphones and a wireless board in tasteful packaging – but that combination allows for a lot of useful stuff to happen both offline and with its companion app.

You activate the device, and it starts recording and both translating and transcribing the audio via a cloud service as it goes (or later, if you choose). That right there is already super useful when you have meetings to transcribe, or you’re meeting one-on-one with someone who doesn’t speak English.

Recordings are kept on the phone because there is no memory onboard the device. There’s an option for a cloud service, but that probably won’t be necessary, considering the compact size of these audio files. If you’re paranoid about security, this probably isn’t your solution, but for everyday stuff, it should be just fine.

If you want to translate a conversation with someone whose language you don’t speak, you pick two of the 12 built-in languages in the app and then either pass the gadget back and forth or let it sit between you while you talk. The transcript will show on the phone, and the ONE Mini can speak the translation in its little robotic voice.

Right now, translation is only available online, but the company plans to offer offline translation for specific language pairs that have reliable two-way edge models, probably Mandarin-English and Korean-Japanese.
It has a headphone jack, too, which lets it act as a wireless playback device for the recordings or your music, or to take calls using the nice onboard mics. It’s lightweight and has a little clip, so it’s probably better than connecting directly to your phone in many cases.
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There’s also a 24/7 interpreter line that charges two bucks a minute. Though most people won’t use the service, in an emergency, it could be pretty helpful to have a panic button that sends you directly to a person who speaks both the languages you’ve selected.
Right now you can buy a ONE Mini for $79. They’ve already passed their funding goal and are planning on shipping in June, so it shouldn’t be a long wait.
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IBM Makes Watson Available Across Amazon, Microsoft, and Google Clouds

3/3/2019

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For years, IBM has offered corporate customers its Watson data-crunching technology – but only if they used it on IBM’s cloud computing service. Now, to expand Watson’s reach, IBM is also making it available on competing cloud services.

IBM said recently that it would allow businesses to use some of IBM’s Watson-related software with underlying data that is stored in rival cloud data centers like Microsoft’s Azure and Amazon Web Services. Customers will also be able to use Watson with data stored in their own data centers.

“It is enabling a level of openness that hasn’t been available to date,” said Rob Thomas, IBM general manager of data and AI.

The move marks a departure for IBM, which, until now, hasn’t seemed anything but open with its cloud computing service and Watson technologies. In 2016, for example, then-IBM CFO and current IBM senior vice president of global markets Martin Schroeter told analysts during an earnings call, “Watson runs on our cloud, and our technology will run on IBM’s cloud.”

But IBM is now shaking up its strategy to broaden Watson’s appeal. The change of heart comes as IBM’s public cloud languishes in third place, at best, in terms of market share behind AWS and Microsoft Azure.

Dan Kirsch, a research analyst at Hurwitz & Associates, called IBM’s new service “really significant” because businesses are increasingly seeking technology that’s not dependent on a single vendor.

Nick Patience, a founder and research vice president for 451 Research, said the move is “an acknowledgment by IBM that it’s a hybrid cloud world,” referring to firms wanting to use more than one cloud computing vendor as well as keeping some software running in their internal data centers.

 “We are confident in the IBM cloud that if clients try our products anywhere, they will eventually be drawn to IBM cloud and the uniqueness it provides,” said Thomas.

Although companies are concerned about being locked into a specific company’s cloud infrastructure when it comes to particular software and IT products, Patience said they are currently in the early stages of using AI and are still willing to upload their corporate data to cloud services like AWS and rely on them for machine learning software. Being locked into a particular vendor when it comes to machine learning projects isn’t yet much of a concern, but IBM is betting that will change.

He continued: “You could say IBM is trying to take back the initiative in machine learning here. The Watson brand has lost a little bit of luster over the years as others have come along. They are trying to take it back.”

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SAP’s New Blockchain Project Helps Weed Out Counterfeit Drugs

2/24/2019

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SAP has launched a blockchain-based supply chain tracking system to allow drug wholesalers to authenticate pharmaceutical packaging returned by pharmacies and hospitals. That should help them weed out counterfeit drugs from their supply chain.

SAP says it hopes to eventually expand the use of distributed ledger technology to cover a broader range of pharmaceutical supply chain processes.

According to the company, its blockchain-based solution helps customers comply with the US Drug Supply Chain Security Act (DSCSA), which establishes that as of November 2019, wholesalers must verify prescription drugs that are returned and intended for resale. This piece of legislation is tasked with protecting consumers from contaminated, stolen or fake medication.

Counterfeit drugs are a significant problem in the pharmaceutical industry. Research releasedby the World Health Organization in 2017 found that an estimated 1 in 10 medical products circulating in low-and-middle-income countries was either substandard or fake.

In the US, wholesalers encounter almost 60 million returns a year, accounting for an estimated $7 billion.
With the new software, customers can verify the product code, lot, expiration date and a unique serial number which is embedded in the barcode against manufacturers’ data stored in the blockchain.

It’s worth noting that the software was co-developed with other well-known pharmaceutical companies including Boehringer Ingelheim AG & Co. KG, GlaxoSmithKline plc and Merck Sharp & Dohme.

The news comes after SAP announced two industry consortia within the SAP Blockchain Consortium program in the fall of last year, but this is not the first time blockchain technology has been leveraged in a bid to fight counterfeit goods in the healthcare industry. In fact, Merck was looking to patentblockchain-based technology to bring greater transparency to the supply chain in June 2018.
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An immutable ledger such as blockchain would prove useful in the healthcare industry, so, it’s likely we’ll see similar projects launching soon.
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Amazon Is Taking More Control Over Smart Home Technology

2/17/2019

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Amazon now has a say in the development of a commonly used smart home standard, giving the company more power as it continues to push smart speakers, cameras, doorbells, and all other kinds of gadgets into its customers’ homes.

As of today, Amazon has a seat on the board of the Zigbee Alliance, which oversees implementation of the Zigbee wireless protocol. Zigbee isn’t nearly as popular as Bluetooth or Wi-Fi, but you can think of it a lot like them – it’s a wireless protocol for letting gadgets communicate. But unlike Bluetooth and Wi-Fi, Zigbee is particularly useful for low-power devices and can travel longer distances, making it ideal for simple smart gadgets like a light switch.

Amazon introduced a version of the Echo, called Echo Plus, with Zigbee support more than a year ago. That support allowed the speaker to directly connect to a new world of smart home gadgets, like light bulbs, power outlets, and tiny sensors that it otherwise couldn’t have reached. The home alarm system for Ring, which Amazon owns, also connects to Zigbee.

It’s a slow start, but Amazon’s ascension to Zigbee’s board suggests the company will want to make more use of the protocol in the future. Other companies on Zigbee’s board include: 1) Samsung-owned SmartThings, which makes a smart home hub; 2) Signify, the company behind the popular Philips Hue smart lights; and 3) Comcast, which uses Zigbee on its Xfinity Home security solution.

Getting onto Zigbee’s board isn’t exactly a feat for Amazon, but it is an obvious and deliberate decision. Getting on the board means becoming one of the Alliance’s highest-paying members – $75,000 per year – and it gives those companies an significant advantage: they’re able to “drive specification development, requirements, and test plans.” Or basically, define where Zigbee goes next.
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If Amazon is paying that money, it means the company wants a say in what future versions of Zigbee can do and how different Zigbee devices work together. It also shows Amazon taking an opinion on which smart home standard it’d like to see win out. Zigbee’s most direct competitor is an alternative called Z-Wave, which hardware makers have criticized for relying on proprietary chips from a single company. Amazon is likely among the many companies in the smart home industry that would rather avoid dealing with the pricey parts that could come along with that if Z-Wave were to grow in popularity.

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    Author

    Rick Richardson, CPA, CITP, CGMA

    Rick is the editor of the weekly newsletter, Technology This Week. You can subscribe to it by visiting the website.

    Rick is also the Managing Partner of Richardson Media & Technologies, LLC. Prior to forming his current company, he had a 28-year career in technology with Ernst & Young, the last twelve years of which he served as National Director of Technology.

    Mr. Richardson has been named to the "Technology 100"- the annual honors list of the 100 key achievers in technology in America. He has also been honored by the American Institute of CPAs with two Lifetime Achievement awards and a Special Career Recognition Award for his contributions to the profession in the field of technology.

    In 2012, Rick was inducted into the Accounting Hall of Fame by CPA Practice Advisor Magazine. He has also been named to the 100 most influential individuals in the accounting profession in America by Accounting Today magazine.

    In 2017, Rick was inducted as a Marquis Who’s Who Lifetime Achiever, a registry of professionals who have excelled in their fields for many years and achieved greatness in their industry.

    He is a sought after speaker around the world, providing his annual forecast of future technology trends to thousands of business executives, professionals, community leaders, educators and students.

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