Month: May 2019

Corporate Control

Gun restriction advocates haven’t enjoyed much recent success in their political efforts so they’ve switched gears. They’ve been leaning on corporations to lean on gun retailers. This has resulted in banks refusing to do business with gun retailers and other such nonsense. Now Salesforce has decided to cave to the unwashed masses and is telling gun retailers to either stop selling modern firearms or abandon its platform:

SAN FRANCISCO — On its website, Salesforce.com touts retailer Camping World as a leading customer of its business software, highlighting its use of products to help sales staff move product. A Camping World executive is even quoted calling Salesforce’s software “magic.”

But behind the scenes in recent weeks, the Silicon Valley tech giant has delivered a different message to gun-selling retailers such as Camping World: Stop selling military-style rifles, or stop using our software.

The pressure Salesforce is exerting on those retailers — barring them from using its technology to market products, manage customer service operations and fulfill orders — puts them in a difficult position. Camping World, for example, spends more than $1 million a year on Salesforce’s e-commerce software, according to one analyst estimate. Switching to another provider now could cost the company double that to migrate data, reconfigure systems and retrain employees.

Not many better examples of corporate mutually assured destruction exist than this one. One the one hand Camp World could fold and decide to stop selling modern firearms. If it did, it would almost certainly incite the wrath of gun owners and, as Dick’s Sporting Goods can tell you, pissing off gun owners can hurt your bottom line. On the other hand Camp World could tell Salesforce to go pound sand, which would cost the company both money and public relations, since it spent so much time touting Camp World as one of its success stores. Either way this move could cost Salesforce many other accounts since I’m willing to bet that Camp World isn’t the only gun retailer using Salesforce.

There is a lesson to be learned here. Becoming dependent on a third-party platform is a liability. If you make your business dependent on a third-party platform, your business is suddenly at its mercy. The third-party might come to you some day and tell you that you need to change your business model or it will pull the rug out from under you. If you’re a business owner that values your independence, then it’s in your best interest to avoid becoming dependent on any single third-party.

Killing Yourself Slowly

Trump is working to take this country back to the good old days of mercantilism when governments decided who would succeed and who would fail. Implementing tariffs was just the first act in his strategy to provide a supposed advantage to American companies. His latest act was far more blatant. He issued an executive order to prohibit Huawei from the United States market. In the aftermath of this executive order Google has revoked Huawei’s use of its services, including its Play Store:

President Trump issued an executive order last week banning “foreign adversaries” from doing telecommunication business in the US. The move was widely understood as a ban on Huawei products, and now we’re starting to see the fallout. According to a report from Reuters, Google has “suspended” business with Huawei, and the company will be locked out of Google’s Android ecosystem. It’s the ZTE ban all over again.

That’ll give a much needed boost to American device manufacturers, right? You know, all of those device manufacturers who manufacture their devices in China, where Huawei is headquartered. Because I’m sure this executive order won’t result in any reciprocation from the Chinese government.

But even if we set aside the likelihood of a Chinese retaliatory response, this executive order sends a rather clear message for companies headquartered outside of the United States. That message is that they shouldn’t rely on products or services from companies headquartered in the United States. Huawei can still use Android since it’s an open source project (a good reason to prefer open source code to closed source code) so it doesn’t have to write an operating system for its devices from scratch. It does have to figure out a replacement for Google’s proprietary bits though. There are several solid third-party clients available for Android that allow access to online calendaring, contacts, and e-mail services. Many of those clients are also open source. Huawei could utilize them in place of apps like Google Calendar, Google Contacts, and Google Mail (Google Maps is the tough one to replace but a third-party client could be written for it). So it would only need to worry about distribution and it has enough funding to build its own app store (it could also use something like F-Droid, but that’s unlikely). It could also make licensing money off of its app store by providing access to other Android device manufacturers who had their access revoked by Google due to an executive order.

Foreign companies aren’t going to stop doing business when the figurehead of the United States puts his signature on a piece of paper. They’re going to either make or buy replacements for everything can no longer use. If this behavior of barring foreign companies from business in the United States continues, companies headquartered outside of the United States are going to become more and more wary of relying on American products and services and instead seek foreign alternatives. American companies like Google will find themselves more and more isolated from the global market. The constantly dwindling market size will cause them serious economic hardship, which will translate into economic hardship for their employees.

Isolating domestic businesses from foreign markets is slow economic suicide.

A First

For the first time in the history of the Minneapolis Police Department (MPD) an officer has been found guilty of murder while operating in an official capacity:

Mohamed Noor became the first former Minnesota police officer found guilty of an on-duty murder Tuesday as a Hennepin County jury convicted him for the fatal shooting of Justine Ruszczyk Damond in 2017.

Jurors reached their verdict after about 10 hours of sequestered deliberations in a case that was closely watched nationwide and in Damond’s native Australia. They convicted Noor of third-degree murder and second-degree manslaughter but acquitted him of the most serious count — second-degree murder.

I’ve been following this case through Lou Raguse’s Twitter account since he was one of the handful of journalists granted access to the trial. The main thing I took away from the trial was the extent to which MPD went to cover up the murder. From body cameras not being turned on at critical moments to Noor’s squad car being washed and returned to service the very next day it was pretty obvious that MPD went as far as it could to cover the up the evidence of this murder. However, the case was so blatant that those efforts ended up being in vain.

There is currently a pending civil case brought by the family of Justine Damond against the City of Minneapolis. The evidence revealed during Noor’s trial will likely provide a lot of legal ammunition for Justine’s family’s case. I hope the City of Minneapolis gets soaked for the entire $50 million being sought. It’s obvious that MPD and the government tasked with overseeing it are horribly corrupt and they deserve some swift and severe punishment.