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Jeff Bezos is no longer relentlessly focused on customer satisfaction

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Jeff Bezos is no longer relentlessly focused on customer satisfaction

The fallout from the non-endorsement of Kamala Harris at The Washington Post is here: more than 200,000 canceled subscriptions, NPR reports. This is about 8 percent of the paid subscriber base, and the number of cancellations is still growing.

To put that in perspective, in an Oct. 15th story about Post CEO Will Lewis’s strategy to get more paying subscribers, The New York Times reported that the Post had added 4,000 subscribers since the beginning of 2024 through September. Like, I am actually flabbergasted: that’s fifty times as many cancellations in one weekend as The Post earned in the better part of a year.

“This is obviously an effort by Jeff Bezos to curry favor with Donald Trump in the anticipation of his possible victory.”

Now, there have been multiple reports at this point — from NPR, The Columbia Journalism Review, and The Washington Post itself — that the call to stop endorsing candidates came from Jeff Bezos himself. The same day as Lewis’s bizarre announcement of The Post’s non-endorsement, executives from Bezos’s space company, Blue Origin, met with presidential candidate Donald Trump.

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Lewis would like us to leave poor Bezos alone. Bezos “was not sent, did not read and did not opine on any draft,” the CEO told CNN in the kind of statement that we in the business know as a non-denial denial. That is — it is a carefully worded recitation of things Bezos did not do. It doesn’t deny that Bezos made the call for no endorsement. And today, The New York Times’Ben Mullin reported that Bezos had expressed reservations about a presidential endorsement as early as September.

The blowback has been so intense that Bezos has taken it upon himself to explain the decision in The Washington Post. “I would also like to be clear that no quid pro quo of any kind is at work here,” he wrote. Instead, he claimed that it was “a principled decision.” That it was announced so close to the election was just a little whoopsy-doodle that Bezos claims was “inadequate planning.”

To back the decision, Bezos writes about the nosedive trust in media has taken. It is true that fewer people trust the media than before, but that may also be because people don’t necessarily know as many reporters anymore. In the days of healthy local journalism, reporters were your friends and neighbors, normal people that you interacted with on a regular basis at the grocery store. That is no longer the case; journalists are thin on the ground, and wildly outnumbered by PR people. Fox News, in particular, has gone out of its way to sow distrust. Dumping on other publications is a prime strategy for drumming up Substack subscriptions — just ask Bari Weiss.

But I don’t expect the founder of Amazon to know this history any more than I expect him to understand how to operate The Post’s CMS. And besides, the trust in media thing is a distraction. The op-ed is a clear attempt at damage control — an attempt to stop the bleeding. It is too little, and too late.

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I suppose I should mention the various government contracts Bezos’s other businesses have — among them, Amazon’s $10 billion NSA contract and Blue Origin’s $3.4 billion NASA contract. Trump has previously targeted Bezos for The Washington Post’s reporting. A columnist who quit the Post over the decision, Robert Kagan, told CNN, “This is obviously an effort by Jeff Bezos to curry favor with Donald Trump in the anticipation of his possible victory.” Kagan pointed to the business contracts as motivation.

Bezos would also like us to leave poor Bezos alone. “I would also like to be clear that no quid pro quo of any kind is at work here,” he wrote. “Dave Limp, the chief executive of one of my companies, Blue Origin, met with former president Donald Trump on the day of our announcement. I sighed when I found out, because I knew it would provide ammunition to those who would like to frame this as anything other than a principled decision. But the fact is, I didn’t know about the meeting beforehand.”

Bezos made his bones at Amazon by relentlessly focusing on customer satisfaction. Over and over, he told people to focus on making customers happy. Here’s a fun quote from his 2016 letter to shareholders:

There are many ways to center a business. You can be competitor focused, you can be product focused, you can be technology focused, you can be business model focused, and there are more. But in my view, obsessive customer focus is by far the most protective of day one vitality.

That’s probably good advice for running a business, and it appears to be advice neither Lewis nor Bezos himself took. By spiking a presidential endorsement, Bezos has created the appearance of a conflict of interest — and in journalism, that is as bad as an actual conflict of interest because now you’ve lost the trust of your audience.

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(Lewis, though, is no stranger to journalism, since he does have experience as an editor. However, some of that experience is being investigated in the Sunday Times phone hacking scandal, so maybe he’s not the best person to consult on these matters.)

The blowback is bigger than The Post

Still, if there is one thing Bezos is known for, it’s his cutthroat approach to capitalism. And here, he has failed at that, too. The customers have been speaking very clearly: NPR reports that three of the top 10 stories on the Post’s site Sunday were from staffers pissed off about the killed endorsement. The most-read was by the paper’s beloved humorist Alexandra Petri: “It has fallen to me, the humor columnist, to endorse Harris for president.” When I checked The Post’s site again today, the top two stories were about the controversy.

“Now more than ever the world needs a credible, trusted, independent voice,” Bezos writes. This is true. It’s also why he shouldn’t have hired Will Lewis in the first place. A guy involved in a phone hacking scandal is simply not credible. Between Lewis and the pulled endorsement, it’s clear Bezos does not understand his customers. I wonder if he even understands credibility.

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The blowback is bigger than The Post. One thing our tech overlords have been very unhappy about lately has been the government’s renewed approach to antitrust under Joe Biden. What the Post scandal highlights — besides Will Lewis’s incompetence — is exactly how many businesses Bezos owns, and how conflicts of interest could arise. He has skillfully drawn attention from normal citizens to overreaches of power in business. There is, of course, a solution: breaking up businesses that have gotten too big.

Well, I guess that’s a lesson for us all. This is what happens when you focus on yourself and not on the customers. Not only do they leave you in droves, but they may actually revile you enough to be politically dangerous.

Update, October 28th: Adds Jeff Bezos’s Washington Post op-ed explaining why he chose to shoot his own newspaper in the foot.

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Key features to expect- The Week

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Key features to expect- The Week

Tech giant Apple is expected to roll out its much anticipated iOS 18.1 for its devices today. The new software update for Apple devices will include some of ‘Apple Intelligence’ features. While Apple has not officially announced the release time, the update is expected to be rolled out in India later tonight.

Apple fans have been waiting to try out Apple Intelligence features, which were introduced during the Cupertino giant’s WWDC event in June. Though iOS 18 is compatible with devices from iPhone SE (2nd gen), Intelligence features will be available only on recently released devices like iPhone 15 Pro, iPhone 15 Pro Max, iPhone 16, iPhone 16 Plus, iPhone 16 Pro and iPhone 16 Pro Max. Apple recently introduced its new iPad mini designed for Apple Intelligence. Intelligence features will also be available with iPadOS 18.1, and macOS Sequoia 15.1. 

However, not all Apple Intelligence features will be available with the new update, Beebom reported. According to a report, the new software update is expected to come with Intelligence features like writing tools, clean up tool, call recording transcription, memory movie, new Siri UI, suggested replies in mail and messages, summarize web pages in Safari and reduce interruptions focus mode.

“With Writing Tools, users can refine their words by rewriting, proofreading, and summarising text nearly everywhere they write, including Mail, Notes, Pages, and third-party apps,” Apple said. In Photos, users can create movies using the ‘Memories’ feature by just typing in a description. With ‘Clean Up’ tool, iPhone users can remove distracting elements from their images with just a single tap, without altering the subject. Users can also use Intelligence to record, transcribe, and summarise audio in the Notes and Phone apps. 

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Apple says Apple Intelligence has been designed to “get things done effortlessly”. The US tech giant has also integrated ChatGPT into its Siri and writing tools features. In a release last month, Apple said Apple Intelligence will be first launched in US English and will be expanded to other languages and localised English over the course.

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AI boom thrusts Europe between power-hungry data centers, environmental goals

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This niche AI play is seeing business growth rates that are triple the pace of the data centers


A large hallway with supercomputers inside a server room data center.

Luza Studios | E+ | Getty Images

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The boom in artificial intelligence is ushering in an environmentally conscious shift in how data centers operate, as European developers face pressure to lower the water temperatures of their energy-hungry facilities to accommodate the higher-powered chips of firms such as tech giant Nvidia.

AI is estimated to drive a 160% growth in demand for data centers by 2030, research from Goldman Sachs shows — an increase that could come at a cost to Europe’s decarbonization goals, as the specialized chips used by AI firms are expected to hike the energy use of the data centers that deploy them.

High-powered chips — also known as graphics processing units, or GPUs — are essential for training and deploying large language models, which are a type of AI. These GPUs need high density computing power and produce more heat, which ultimately requires colder water to support reliable cooling of the chips.

AI can consume 120 kilowatts of energy in just one square meter of a data center, which is equivalent to the power consumption and heat dissipation of around 15 to 25 houses, according to Andrey Korolenko, chief product and infrastructure officer at Nebius, who referred specifically to the deployment of Nvidia’s Blackwell GB200 chip.

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“This is extremely dense, and from the cooling standpoint of view you need different solutions,” he said.

The problem we’ve got with the chipmakers, is AI is now a space race run by the American market where land rights, energy access and sustainability are relatively low on the pecking order, and where market domination is key,” Winterson told CNBC

Michael Winterson

chair of the EUDCA

Michael Winterson, chair of the European Data Center Association (EUDCA), warned that lowering water temperatures will eventually “fundamentally drive us back to an unsustainable situation that we were in 25 years ago.”

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“The problem we’ve got with the chipmakers is [that] AI is now a space race run by the American market where land rights, energy access and sustainability are relatively low on the pecking order, and where market domination is key,” Winterson told CNBC.

Major equipment suppliers in Europe say that U.S. chip designers are calling on them to lower their water temperatures to accommodate the hotter AI chips, according to Herbert Radlinger, managing director at NDC-GARBE.

“This is shocking news, because originally everybody from the engineering side expected to go for liquid cooling to run higher temperatures,” he told CNBC, referring to the technology of liquid cooling, which is said to be more efficient than the more traditional method of air cooling.

‘Evolution discussion’

Energy efficiency is high on the European Commission’s agenda, as it seeks to reach its goal of reducing energy consumption by 11.7% by 2030. The EU predicted in 2018 that energy consumption of data centers could rise 28% by 2030, but the advent of AI is expected to boost that number two or threefold in some countries.

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Winterson said that lowering water temperatures is “fundamentally incompatible” with the EU’s recently launched Energy Efficiency Directive, which established a dedicated data base for data centers of a certain size to publicly report on their power consumption. The EUDCA has has been lobbying Brussels to consider these sustainability concerns.

Energy management firm Schneider Electric engages often with the EU on the topic. Many of the recent discussions have focused on different ways to source “prime power” for AI data centers and for the potential for more collaboration with utilities, said Steven Carlini, chief advocate of AI and data centers and vice president at Schneider Electric.

European Commission energy officials have also had exchanges with Nvidia to discuss energy consumption and the use of data centers with regard to the effectiveness of power use and that of chipsets.

CNBC has approached Nvidia and the Commission for comment.

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Schneider Electric CEO: Go from grid to the chip, from chip to the chiller

“Cooling is the second-largest consumer of energy in the data center after the IT load,” Carlini told CNBC in emailed comments. “The energy use will rise but the PUE (Power Usage Effectiveness) may not rise with lower water temperatures despite the chillers having to work harder.”

Schneider Electric’s customers that are deploying Nvidia’s Blackwell GB200 super chip are asking for water temperatures of 20-24 degrees Celsius or between 68 and 75 degrees Fahrenheit, Carlini said.

He added that this compares to temperatures of around 32 degrees Celsius with liquid cooling, or of around 30 degrees Celsius that Meta has suggested for the water it supplies to the hardware.

Ferhan Gunen, vice president of data center operations for the U.K. at Equinix, told CNBC that there are a number of concerns about AI that Equinix has been discussing with its customers.

“They want to increase the density of their servers, which is, they want to have higher-power-using chips, or they want to have more servers,” she said, adding that the shift is not “clear cut.”

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“It’s really an evolution discussion more than anything,” Gunen said.

Nvidia, which declined to comment on the cooling requirements of its chips, announced a new platform for its Blackwell GPUs earlier this year. It said that the architecture would enable organizations to run real-time generative AI on large language models at up to 25 times less cost and energy consumption compared to earlier technology.

Liquid cooling will require a “reconfiguration,” Gunen explained, adding that new data centers are already coming ready with this technology. “Yes, higher density will mean more power use, and will also mean more cooling requirement. But then the technology is changing, so you’re doing it differently. That’s why there is a balance in all of this,” she said.

Data center liquid cooling is accelerating and it's accelerating now, says Vertiv CEO

Race for efficiency

Nebius, which has around $2 billion in cash on its balance sheet after splitting from Russia’s Yandex, has said it will be one of the first to bring Nvidia’s Blackwell platform to customers in 2025. The firm has also announced plans to invest more than $1 billion on AI infrastructure in Europe by the middle of next year.

Nebius’ Korolenko said liquid cooling is a “first step,” where cost of ownership will initially be worse before improving over time.

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“There’s a big push to deliver, but at the same time, when you go to scale, you will want to have the ability to choose, to be economical and not sacrifice too much. Power efficiency is important for the running costs. It’s always a high priority,” Korolenko said.

Even before a boom in demand for AI applications hit the market, the data center industry in Europe was struggling to keep pace with the growing digital sector.

Sicco Boomsma, managing director of ING’s TMT team, said those involved in the market are “very sensitive to power” and that while Europe’s focus is on infrastructure, the U.S. has focused more on expanding assets in Europe where power is available.

“There’s a tremendous amount of data center operators also coming from the U.S. that are aligning in order to ensure that their data center infrastructure is in line with the various goals that the EU has as well, such as being carbon neutral, such as being efficient, on water utilization, maintaining biodiversity.”

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“It is a sort of a race where they want to demonstrate that their knowledge is leading to super efficient infrastructure,” he said.



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NYT Strands today: hints, spangram and answers for Tuesday, October 29

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NYT Strands today: hints, spangram and answers for Saturday, September 21

Strands is a brand new daily puzzle from the New York Times. A trickier take on the classic word search, you’ll need a keen eye to solve this puzzle.

Like Wordle, Connections, and the Mini Crossword, Strands can be a bit difficult to solve some days. There’s no shame in needing a little help from time to time. If you’re stuck and need to know the answers to today’s Strands puzzle, check out the solved puzzle below.

How to play Strands

You start every Strands puzzle with the goal of finding the “theme words” hidden in the grid of letters. Manipulate letters by dragging or tapping to craft words; double-tap the final letter to confirm. If you find the correct word, the letters will be highlighted blue and will no longer be selectable.

If you find a word that isn’t a theme word, it still helps! For every three non-theme words you find that are at least four letters long, you’ll get a hint — the letters of one of the theme words will be revealed and you’ll just have to unscramble it.

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Every single letter on the grid is used to spell out the theme words and there is no overlap. Every letter will be used once, and only once.

Each puzzle contains one “spangram,” a special theme word (or words) that describe the puzzle’s theme and touches two opposite sides of the board. When you find the spangram, it will be highlighted yellow.

The goal should be to complete the puzzle quickly without using too many hints.

Hint for today’s Strands puzzle

Today’s theme is “You and me”

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Here’s a hint that might help you: what you call people you are close with.

Today’s Strand answers

NYT Strands logo.
NYT

Today’s spanagram

We’ll start by giving you the spangram, which might help you figure out the theme and solve the rest of the puzzle on your own:

Today’s Strands answers

  • PARTNER
  • BESTIE
  • COMPANION
  • FRIEND
  • SIDEKICK






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Ford and Google make big Android Automotive announcement

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Ford and Google make big Android Automotive announcement

Ford and Google have jointly issued a big Android Automotive announcement. Together, the companies are releasing a major upgrade to the Android Auto experience for Ford EVs.

What is the big Android Automotive announcement from Ford?

Ford has been betting big on Electric Vehicles (EVs). However, some of the popular Ford EVs run phone-based Android Auto. They do not have the new Android Automotive experience, which runs natively.

In a big announcement about the Ford automotive department, Anthony Phillips has confirmed that Ford EVs are getting upgrades for the Android Auto experience. In the official announcement on LinkedIn, Phillips confirmed updates are rolling out to the Mustang Mach-E and Ford F-150 Lightning.

Drivers of the abovementioned Ford EVs will soon have access to smarter navigation tools for managing charging stops. Drivers will soon be able to track battery levels through Google Maps on Android Auto.

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Ford announced these updates for the Android Automotive experience earlier this year. According to Android Authority, these improvements are focused on Ford’s electric truck and SUV, for now. Although neither of the companies has confirmed yet, other Ford models may get the update in the future.

How will Ford EVs benefit from the latest update?

It is important to note that the updates are rolling out to the phone-based Android Auto. In other words, certain Ford EV owners will gain the new features after updating their cars and the Android Auto app on their Android smartphones.

The highlight of the update is real-time battery level estimations within Google Maps. Drivers will now get to see the remaining battery charge upon reaching their destination while navigating. Google Maps will also show a “minimum recommended charge” for reaching certain destinations. Such features were exclusive to vehicles with the integrated Android Automotive system.

The updated Android Auto for Ford EVs will also show charging stations equipped with NACS chargers along the route. The NACS standard, developed by Tesla, is also supported by some Ford EVs via an adapter.

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Moving forward, if a Ford EV driver selects a DC fast charger, the vehicle will automatically initiate battery preconditioning. This means the battery would be brought to an ideal temperature to initiate fast charging quickly and efficiently.

As Google is updating the Android Auto app, it is quite likely that EVs from other manufacturers could get these updates in the future. However, no automaker has made any official announcement yet.

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Google starts selling refurbished Pixel phones

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Lawrence Bonk

Google now offers refurbished Pixel phones, as originally spotted by The Verge. The company is selling refurbed Pixel 6, Pixel 6A and Pixel 7 handsets directly on the Google Store. The phones can be purchased for up to 40 percent off, when compared to new models. Each smartphone ships with the same 1-year limited warranty and customer support options as a new model.

Google says that each refurbished handset has been “carefully inspected” to ensure that the phones, screens and batteries are all in tip-top shape. However, a company representative offered no guarantees regarding battery life in a statement to The Verge. Phone batteries age like people. Slowly at first and then all at once.

However, the prices are enticing. The Pixel 6 is available for $339, instead of $599, while the well-reviewed Pixel 7 Pro is $629 instead of $899. All of these refurbished models offer 128GB of storage, but Google spokesperson Patrick Seybold says that the store will soon offer other storage tiers.

Each phone ships with the latest Android software, which is a nice touch, and comes with a compatible charger. There’s also free shipping.

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Gartner predicts AI agents will transform work, but disillusionment is growing

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Gartner predicts AI agents will transform work, but disillusionment is growing

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Very quickly, the topic of AI agents has moved from ambiguous concepts to reality. Enterprises will soon be able to deploy fleets of AI workers to automate and supplement — and yes, in some cases supplant — human talent. 

“Autonomous agents are one of the hottest topics and perhaps one of the most hyped topics in gen AI today,” Gartner distinguished VP analyst Arun Chandrasekaran said at the Gartner Symposium/Xpo this past week. 

However, while autonomous agents are trending on the consulting firm’s new generative AI hype cycle, he emphasized that “we’re in the super super early stage of agents. It’s one of the key research goals of AI companies and research labs in the long run.” 

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Based on Gartner’s 2024 Hype Cycle for Generative AI, four key trends are emerging around gen AI — autonomous agents chief among them. Today’s conversational agents are advanced and versatile, but are “very passive systems” that need constant prompting and human intervention, Chandrasekaran noted. Agentic AI, by contrast, will only need high-level instruction that they can break out into a series of execution steps. 

“For autonomous agents to flourish, models have to significantly evolve,” said Chandrasekaran. They need reasoning, memory and “the ability to remember and contextualize things.”

Another key trend is multimodality, said Chandrasekaran. Many models began with text, and have since expanded into code, images (as both input and output) and video. A challenge in this is that “by the very aspect of getting multimodal, they’re also getting larger,” said Chandrasekaran. 

Open-source AI is also on the rise. Chandrasekaran pointed out that the market has so far been dominated by closed-source models, but open source provides customization and deployment flexibility — models can run in the cloud, on-prem, at the edge or on mobile devices. 

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Finally, edge AI is coming to the fore. Much smaller models — between 1B to 10B parameters — will be used for resource-constrained environments. These can run on PCs or mobile devices, providing for “acceptable and reasonable accuracy,” said Chandrasekaran. 

Models are “slimming down and extending from the cloud into other environments,” he said. 

Heading for the trough

At the same time, some enterprise leaders say AI hasn’t lived up to the hype. Gen AI is beginning to slide into the trough of disillusionment (when technology fails to meet expectations), said Chandrasekaran. But this is “inevitable in the near term.”

There are a few fundamental reasons for this, he explained. First, VCs have funded “an enormous amount of startups” — but they have still grossly underestimated the amount of money startups need to be successful. Also, many startups have “very flimsy competitive moats,” essentially serving as a wrapper on top of a model that doesn’t offer much differentiation.

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Also, “the fight for talent is real” — consider the acqui-hiring models — and enterprises underestimate the amount of change management. Buyers are also increasingly raising questions about business value (and how to track it).

There are also concerns about hallucination and explainability, and there’s more to be done to make models more reliable and predictable. “We are not living in a technology bubble today,” said Chandrasekaran. “The technologies are sufficiently advancing. But they’re not advancing fast enough to keep up with the lofty expectations enterprise leaders have today.”

Not surprisingly, the cost of building and using AI is another significant hurdle. In a survey by Gartner, more than 90% of CIOS said that managing cost limits their ability to get value from AI. For instance, data preparation and inferencing costs are often greatly underestimated, explained Hung LeHong, a distinguished VP analyst at Gartner.

Also, software vendors are raising their prices by up to 30% because AI is increasingly embedded into their product pipelines. “It’s not just the cost of AI, it’s the cost of applications they’re already running in their business,” said LeHong.

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Core AI use cases

Still, enterprise leaders understand how instrumental AI will be going forward. Three-quarters of CEOs surveyed by Gartner say AI is the technology that will be most impactful to their industry, a significant leap from 21% just in 2023, LeHong pointed out. 

That percentage has been “going up and up and up every year,” he said. 

Right now, the focus is on internal customer service functions where humans are “still in the driver’s seat,” Chandrasekaran pointed out. “We’re not seeing a lot of customer-facing use cases yet with gen AI.” 

LeHong pointed out that a significant amount of enterprise-gen AI initiatives are focused on augmenting employees to increase productivity. “They want to use gen AI at individual employee level.” 

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Chandrasekaran pointed to three business functions that stand out in adoption: IT, security and marketing. In IT, some uses for AI include code generation, analysis and documentation. In security, the technology can be used to augment SOCs when it comes to areas such as forecasting, incident and threat management and root cause analysis. 

In marketing, meanwhile, AI can be used to provide sentiment analysis based on social media posts and to create more personalized content. “I think marketing and gen AI are made for each other,” said Chandrasekaran. “These models are quite creative.” 

He pointed to some common use cases across these business functions: content creation and augmentation; data summarization and insights; process and workflow automation; forecasting and scenario planning; customer assistance; and software coding and co-pilots.  

Also, enterprises want the ability to query and retrieve from their own data sources. “Enterprise search is an area where AI is going to have a significant impact,” said Chandrasekaran. “Everyone wants their own ChatGPT.” 

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AI is moving fast

Additionally, Gartner forecasts that: 

  • By 2025, 30% of enterprises will have implemented an AI-augmented and testing strategy, up from 5% in 2021. 
  • By 2026, more than 100 million humans will engage with robo or synthetic virtual colleagues and nearly 80% of prompting will be semi-automated. “Models are going to get increasingly better at parsing context,” said Chandrasekaran. 
  • By 2027, more than 50% of enterprises will have implemented a responsible AI governance program, and the number of companies using open-source AI will increase tenfold. 

With AI now “coming from everywhere,” enterprises are also looking to put specific leaders in charge of it, LeHong explained: Right now, 60% of CIOs are tasked with leading AI strategies. Whereas before gen AI, data scientists were “the masters of that domain,” said LeHong. 

Ultimately, “most of our clients are still throwing things to see if they stick to the wall,” he said. “Now they know which wall to throw it at. Before they had four walls and maybe a ceiling to throw it at, now they have a marketing wall, an IT wall, a security wall.”


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