GOVERNMENTS CLAIMS WE'LL
CONTINUE TO FOLLOW THE
DEVELOPMENTS FOR YOU.
NOW THIS, FANG STOCKS WE TALK
ABOUT THEM ALL THE TIME, MINUS
APPLE TAKING A TUMBLE AT THIS
HOUR LOOK AT APPLE BUCKING THE
TREND, AND RED ARROWS
ACROSS-THE-BOARD FROM FACEBOOK
TO GOOGLE AND NETFLIX SEEING
THE MARKET SPOOKED IT SEEMS BY
TO A DOWNTURN OF CHINA'S TECH
GIANT SO ONLINE RETAIL POWER
PLAYER ALIBABA THE WORLD'S
LARGEST GAMING COMPANY 10-CENT
DROPPING THIS HOUR, HITTING A
NEW ANNUAL LOW DOWN AS YOU CAN
SEE MORE THAN, WELL 6.5% DOWN
TWO, NEARLY $3 AT 41 AND THIS
AFTER REPORTING A SLIDE IN
PROFITS FOR THE FIRST TIME IN 13
YEARS, OBVIOUSLY INVESTORS
WEREN'T EXPECTING THAT.
ANYWAY HERE TO WEIGH IN IS
SOMEONE WHO KNOWS A THING OR TWO
ABOUT CALTECH DAVID MORGAN CO-
EXCLUSIVE.
DAVID THANK YOU SO MUCH FOR
JOINING US.
WE CAN START WITH CHINA IF YOU
LIKE BECAUSE IT'S INTERESTING
TENCENT SHOWING GROWTH SLOWING
DOWN.
I READ SOMEWHERE THAT THEY'RE
BIG INTO VIDEO GAMES AND THE
AND WE'VE SEEN A BIT OF A SLOW
DOWN IN THAT BIG GIANT COMPANY
IN CHINA CALLED TENCENT, AND ITS
HURT THE OTHER BIG INTERNET
THREE OF WHICH ARE BOYS AND FORT
KNIGHT AND OTHER GAMES HAVE
PROVED TO BE UNBELIEVABLY
IMMERSIVE AND THERE'S NO
QUESTION WE'RE FACING GREAT
OPPORTUNITY WITH GAMES BUT I
THINK ALSO AS PARENTS, THERE'S
CERTAINLY CHALLENGES.
ASHLEY: YOU GOT OUT AHEAD OF
WHAT KIND OF SERVICE DO YOU
PROVIDE TO THE BIG SILICON
VALLEY COMPANIES THE BIG TECH
COMPANIES?
>> WE GIVE OUR 1,100 BUSINESS
CUSTOMERS MANY OF WHOM ARE IN
SILICON VALLEY A SOFTWARE
PLATFORM AND NETWORK THAT ALLOWS
THEM TO INVENT PHONE CALLS OR
EXPERIENCE.
WITH THAT THEMSELVES?
>> WELL YOU CERTAINLY COULD.
ASHLEY: DON'T WANT TO DO YOUR
BUSINESS ANY DAMAGE.
>> I AGREE THAT THESE LARGE
INTO SPACE TO CREATING
EXTRAORDINARY EXPERIENCES BUT
THEY TRUST US TO HAVE A SECURE,
WONDERFUL, HIGH QUALITY NETWORK
AND A SOFTWARE PLATFORM SO THAT
THEY DON'T HAVE TO KNOW ANYTHING
ABOUT COMMUNICATESING.
ASHLEY: YOU SAY SECURED NETWORK
TALK ABOUT THESE DAYS WHEN WE
TALK ABOUT TECH.
SECURITY, AND STEPS BEING TAKEN
TO PROTECT OUR PRIVACY OUR DATA
WHICH WILL LEAD TO REGULATION.
WHERE DOES THIS ALL GO IS THE
GOVERNMENT GETTING IN THERE IS
IT HEAVY HANDED HOW DO WE FIGURE
THIS OUT?
>> WE'RE GDPR COMPLAINT AND ON
TRACK TO DO ALL THE RIGHT THINGS
WHERE DOES IT ALL GO?
I THINK WHEN YOU HAVE DEVICES
LISTENING TO US IN OUR LIVING
ROOMS AND BEING VERY EFFECTIVE
IN HELPING US DO SEARCH REQUESTS
WE ABSOLUTELY HAVE TO HAVE GREAT
ASSURANCE THAT OUR
INFORMATION AND PRIVACY IS BEING
PROTECTED BUT I THINK COMPANIES
WILL INNOVATE TO GET THEIR FAR
FASTER AND MORE EFFECTIVELY THAN
OUR BEST INTEREST FOR THESE
ILLUSION THESE DAYS DAVID?
CAN WE EXPECT PRIVACY BECAUSE
MOST OF US WILLINGLY PUT IT OUT
THERE AND FOR THE MOST PART I
DON'T LIKE THE FACT, I DON'T
LIKE WHAT THEY DO WITH IT BUT I
UNDERSTAND FOR THESE AMAZING
GADGETS AND THE SERVICES I CAN
GET ON THESE GADGETS I'M
THINKING OKAY.
I CAN LIVE WITH THAT.
>> I CAN TOO OUR BANK ACCOUNTS
WITH LOGIN AND PASSWORD AND TWO
FACTOR AUTHENTICATION ARE
PRIVATE WE ALL CHECK OUR
BALANCES ONLINE.
I DON'T THINK THERE'S ANY REASON
BY TECHNOLOGY THAT LETS US HAVE
CONFIDENCE IN OUR HOMES AND
OFFICES WE ARE INDEED BEING KEPT
PRIVATE.
ASHLEY: BUT CAN REGULATION BE
IMPOSED THAT ENABLES BUSINESSES
MODEL?
>> I THINK REGULATIONS WILL
ALWAYS TRAIL INNOVATION.
THEY WON'T LEAD IT AND I THINK
COMPANIES ARE DOING THE RIGHT
THING SOME OF THE LARGEST MOST
CREATIVE TECHNOLOGY COMPANIES IN
THE WORLD ARE DOING THE RIGHT
THEY'RE OFFERING COME WITH A
THING TO GET THERE AND I THINK
HARD, WHY CAN'T WE STOP THE HACK
ERS?
TALKING ABOUT BEING ONE STEP
AHEAD.
THEY'RE ALWAYS AHEAD NO MATTER
HOW SECURE SOMETHING IS, A KID
IN A GARAGE IN ST. PETERSBURG
RUSSIA CAN GET INTO THE PENTAGON
WILL COME DOWN.
I THINK THE LEVEL OF COMPLEXITY
NEEDED TO SUSTAIN LARGE SCALE
ATTACKS AGAINST BIG DATA AND AIS
ARE HARD TO SUSTAIN OUTSIDE OF A
STATE ACTOR AND THAT'S WHY YOU
SEE THINGS LIKE TARIFFS AND
THREATS GOING ON ECONOMICALLY.
THERE ARE STATE ACTORS TRYING TO
PENETRATE COMMERCIAL ENTERPRISES
INCLUDING OUR OWN EVERY DAY.
ASHLEY: YOU SAY STATE ACTORS BUT
WE KNOW VERY WELL THAT CHINA,
NORTH KOREA, RUSSIA INFLUENCE IN
CAN BE DEVICED SOME SORT OF
HAPPENING COLD?
I MEAN OBVIOUSLY THAT'S THE
RUNNING GUN BATTLE BUT ONE THAT
BIG TECH WILL WIN.
ASHLEY: YOU DO THINK THAT?
>> I DO.
ASHLEY: BECAUSE THAT'S THE
BIGGEST THING HOLDING US BACK.
>> IT IS AND I THINK THESE
COMPANIES HAVE DEMONSTRATED IN
THE PAST GREAT FIDELITY TO THEIR
USER BASES AND I THINK THEY'RE
COMMITTED TO US AS HARD AS IT
MUCH MUCH MORE DIFFICULT WHEN
YOU'RE UP AGAINST LARGE LARGE
DATA SETS WITH LOTS OF
COMPLEXITY AND SCALE.