<ul class="summary-list"><li>A <keyword id="11970100" type="UNKNOWN" weightage="60" keywordseo="humpback-whale" source="Orion">humpback whale</keyword> bounced onto a small fishing boat in a moment captured on video over the weekend.</li><li>The incident off the coast of Massachusetts did not result in any injuries or serious damage.</li></ul><p>A humpback <keyword id="12277180" type="UNKNOWN" weightage="60" keywordseo="whale" source="Orion">whale</keyword> made waves over the weekend after jumping out of the water and landing on top of a small fishing boat in a remarkable moment captured on video.</p><p>The marine mammal made its move off the Massachusetts coast on Sunday, briefly submerging the bow of a 19-foot vessel with its weight.</p><p>Footage of the incident captured the humpback catapulting itself out of the water and landing with full force on the front of the boat, causing it to dip into the water before bouncing back up. The vessel was one of several similar-sized boats in the immediate area.</p><blockquote class="twitter-tweet blockquote" data-lang="en" data-cards="" data-conversation="">—The Associated Press  (@AP) <a href="https://twitter.com/mims/statuses/1551619538059284482?ref_src=twsrc%5Etfw">July 25, 2022</a></blockquote><p>In a Sunday statement, a spokesperson for the town of Plymouth said nobody was injured in the encounter and reported minimal damage to the affected boat. Plymouth Harbormaster Chad Hunter told <a href="https://www.nbcboston.com/news/local/video-shows-whale-breaching-off-mass-coast-landing-on-boat-it-was-insane/2787896/">NBC10 Boston</a> that the vessel was able to return to the boat ramp without any assistance.</p><p>"The boat was in the right place at the wrong time. This could have been much worse for all involved," Hunter told the outlet. "Children like to lean over the side of the boat to watch the fish so it is very lucky that nobody got hurt here. An incident like this is pretty rare but very dangerous to boaters."</p><p>One witness described the encounter as "insane." </p><p>"I just saw the boat go freaking flying, it was crazy," Ryder Parkhurst told the station. "It was nuts. I couldn't believe the thing was still floating."</p><p>Just two days earlier, the area was home to yet another whale bumping incident. A paddle boarder on Friday <a href="https://www.nbcboston.com/news/local/video-whale-bumps-boat/2782053/">recorded a whale bumping into a boat</a>, sending the vessel rocking back and forth.</p><p>A recent abundance of bait fish in the region has attracted both large numbers of fishing boats and hungry whales looking to feed, <a href="https://www.nbcboston.com/news/local/whale-jumping-on-boat-explainer/2788602/">WBTS Boston reported.</a></p><p>The town said the Plymouth Harbormaster Department reminded boaters to keep at least 100 yards of distance from whales to avoid "potential interactions."</p>

Dramatic video captured the moment when whale off the coast of Massachusetts briefly submerged the front of a 19-foot vessel after bouncing onto the bow

<ul class="summary-list"><li>The Boston Fed published a long-awaited research on <keyword id="10038048" type="UNKNOWN" weightage="60" keywordseo="central-bank-digital-currencies" source="Orion">central bank digital currencies</keyword>.</li><li>The effort was in partnership with the Massachusetts Institute of Technology's Digital Currency Initiative.</li><li>In this first phase, researchers focused on concepts including cryptography, distributed systems, and blockchain technology.</li></ul><p>The <keyword id="12068877" type="UNKNOWN" weightage="60" keywordseo="federal-reserve-bank-of-boston" source="Orion">Federal Reserve Bank of Boston</keyword> published a long-awaited research paper on central bank digital currencies on Thursday in partnership with the Massachusetts Institute of Technology's Digital Currency Initiative.</p><p>The <a href="https://www.bostonfed.org/publications/one-time-pubs/project-hamilton-phase-1-executive-summary.aspx">35-page white paper</a> is part of a joint initiative announced in August 2020 that aimed to explore the feasibility of a digital currency in the US. It is the <a href="https://www.bostonfed.org/publications/one-time-pubs/project-hamilton-phase-1-executive-summary.aspx">first phase</a> of what the group dubbed "Project Hamilton."</p><p>In this phase, researchers focused on concepts including cryptography, distributed systems, and blockchain technology to build and test platforms.</p><p>"Our primary goal was to design a core transaction processor that meets the robust speed, throughput, and fault tolerance requirements of a large retail payment system," the report said.</p><p>The researchers were able to produce one code base that was capable of handling 1.7 transactions per second. For most transactions, they were able to reach settlement finality in under two seconds. As a whole, the researchers said they met their goal of creating a core processing engine for a hypothetical general-purpose <keyword id="6791630" type="UNKNOWN" weightage="60" keywordseo="cbdc" source="Orion">CBDC</keyword>.</p><p>"Our secondary goal was to create a flexible platform for collaboration, data gathering, comparison with multiple architectures, and other future research," the report added. </p><p>The researchers released all of the software from their research publicly under the <a href="https://github.com/mit-dci/opencbdc-tx" target="_blank" rel="noopener">MIT open source license</a>, which allows anyone to examine, modify, and improve the code. </p><p>While the first phase focused on the feasibility and performance of basic transactions, the second phase will focus on the processor's baseline requirements as well as critical questions involving high-security issuance, balancing privacy with compliance, and resilience to denial of service attacks. </p><p>The partnership between the Boston Fed and <keyword id="12149473" type="UNKNOWN" weightage="60" keywordseo="mit" source="Orion">MIT</keyword> is separate from the study conducted by the Federal Reserve. The US central bank <a href="https://www.businessinsider.com/federal-reserve-digital-dollar-cryptocurrency-central-bank-digital-currency-report-2022-1">in January published its own</a> long-awaited paper on the subject. </p><p>CBDC is a type of central bank liability — similar to the US dollar — issued in digital form, which could be used by the general public. It will have the full backing of the central bank although it could be managed by designated private financial institutions.</p><p>As it stands, 87 countries are exploring <keyword id="12197645" type="UNKNOWN" weightage="60" keywordseo="cbdcs" source="Orion">CBDCs</keyword>, and 14, including major economies like China and South Korea, are already in the pilot stage, according to a tracker by the <a href="https://www.atlanticcouncil.org/cbdctracker/" target="_blank" rel="noopener">Atlantic Council</a>. Nine have already fully launched a digital currency.</p><p>Of the countries with the four largest central banks — the Federal Reserve, the European Central Bank, the Bank of Japan, and the Bank of England —the US is the furthest behind, according to the tracker.</p>

The Boston Fed and MIT publish long-awaited research on central bank digital currencies

<ul class="summary-list"><li>A viral TikTok video of a woman making her husband give her flowers has been praised by viewers.</li><li>But a couples' therapist has said that this is "not the most effective" approach.</li></ul><p>A viral TikTok video of a woman buying herself flowers and then reacting as if her husband had gifted them to her has led to a conversation about getting your needs met in a relationship.</p><p>In the <a href="https://www.tiktok.com/@brittthebubblybarista/video/7253632696952589614" target="_blank" rel="noopener">video</a> posted on July 9, Brittany Johnson, who goes by the TikTok username <a href="https://www.tiktok.com/@brittthebubblybarista" target="_blank" rel="noopener">@brittthebubblybarista</a>, could be seen standing by the door with a bouquet of roses waiting for her husband to walk in.</p><p>When he did, she immediately thrust the flowers into his arms and pushed him back outside. When he walked back through the door holding the flowers, she hugged him and said, "Oh my gosh, thank you!" in a surprised tone. It was captioned, "When you want flowers from your husband."</p><p>The video has gone mega-viral, receiving over 26 million views, and a follow-up showing footage of the man captured from a doorbell camera received an additional 2.7 million. </p><blockquote class="tiktok-embed" cite="https://www.tiktok.com/@brittthebubblybarista/video/7253632696952589614" data-video-id="7253632696952589614" style="max-width: 605px;min-width: 325px;"> <section> <a target="_blank" title="@brittthebubblybarista" href="https://www.tiktok.com/@brittthebubblybarista?refer=embed">@brittthebubblybarista</a> When you just want flowers from your husband  he was so thrown off at first lmao <a title="fypシ" target="_blank" href="https://www.tiktok.com/tag/fyp%E3%82%B7?refer=embed">#fypシ</a> <a title="fyp" target="_blank" href="https://www.tiktok.com/tag/fyp?refer=embed">#fyp</a> <a target="_blank" title="♬ original sound - Brittany Johnson" href="https://www.tiktok.com/music/original-sound-7253632723926829870?refer=embed">♬ original sound - Brittany Johnson</a> </section> </blockquote> <p>Many viewers wrote that they thought it was a great idea, and commented on how funny her husband's reaction was. One viewer joked that it had inspired them to do the same thing to their partners, except with an engagement ring instead of flowers, to encourage him to propose. </p><p>Several men in the comments wrote that if this had happened to them, they would have assumed their girlfriend had bought them flowers. </p><blockquote class="tiktok-embed" cite="https://www.tiktok.com/@brittthebubblybarista/video/7253680028771257642" data-video-id="7253680028771257642" style="max-width: 605px;min-width: 325px;"> <section> <a target="_blank" title="@brittthebubblybarista" href="https://www.tiktok.com/@brittthebubblybarista?refer=embed">@brittthebubblybarista</a> Replying to @LVSocia <a target="_blank" title="♬ original sound - Brittany Johnson" href="https://www.tiktok.com/music/original-sound-7253680015362083627?refer=embed">♬ original sound - Brittany Johnson</a> </section> </blockquote> <p>Responding to one comment, Johnson wrote that her husband is a "good sport," and that she "couldn't have asked for a better man." </p><h2>This may not be the best way to get your needs met in a relationship</h2><p>Despite the number of positive comments, a couples' therapist told Insider that there are more effective ways to address unmet needs in relationships.</p><p>"The general idea behind the TikTok is that she's expressing a need or want to her husband, which on its face is great," said Dr. Isabelle Morley, a clinical psychologist specializing in couples therapy based in Boston, Massachussets. </p><p>While she said that it is important to share what we want and need with our partners because they are not mind readers, she said that the way the TikToker pursued it was "not the most effective," as she did not provide her partner with the opportunity to do it himself. </p><p>"Think about how you'd feel if your loved one sent you a message asking to buy movie tickets for the weekend, versus them shoving tickets in your hand and telling them to give them to you as if it was a gift," Morley said. "You'd probably feel controlled, and also some passive aggression from your partner."</p><p>Instead, she suggested that a better approach would have been to send her partner a text such as, "Hey, I would absolutely love a surprise tonight, maybe some flowers, if you're up for it!" </p><p>Morley told Insider that "warmth, vulnerability, and directness" is always the way to go when it comes to relationships.</p><p>She said, "An honest and vulnerable request for your partner to meet a need will give them an opportunity to be there for you and make you happy, which will probably make them feel happy, too."</p><p>Johnson did not respond to Insider's request for comment. </p>

Viewers praised a TikToker's unusual tactic to make her husband give her flowers. But a couples' therapist disagrees.

<ul class="summary-list"><li>Officers raided a suite where four Black students were staying at Harvard University, <a href="https://www.bostonglobe.com/2023/04/03/metro/they-had-guns-pointed-us-harvard-university-police-responding-hoax-emergency-call-order-students-suite-early-monday/">The Boston Globe</a> reported. </li><li>Police said they received a 911 call about an active threat in the building, per reports.</li></ul><p>Harvard police raided a suite where four Black students were staying after someone made a hoax 911 call, <a href="https://www.bostonglobe.com/2023/04/03/metro/they-had-guns-pointed-us-harvard-university-police-responding-hoax-emergency-call-order-students-suite-early-monday/">The Boston Globe</a> reported. </p><p>Seniors Jarah Cotton, Jazmin Dunlap, David  Madzivanyika, and Alexandra René were asleep in their suite in the Leverett House when officers began banging on the door at around 4 a.m., <a href="https://www.thecrimson.com/article/2023/4/4/lev-swatting-attack/">The Harvard Crimson</a> reported. </p><p>Cotton told the Crimson that officers in riot gear were at the door pointing rifles at them and ordering them to leave the suite with their arms up in the air. </p><p>"We were all terrified — they had guns pointed at us," Cotton told the Globe. "Everybody was extremely frazzled. No one's been asleep since."</p><p>The group was taken to another suite, where an officer told them that someone made a call that there was an active threat in their room, Cotton told the Crimson. </p><p>"We were all extremely scared, particularly because my roommates and I are Black students who have been bombarded our whole lives with stories and images portraying how situations such as this had ended up terribly," Cotton told the Crimson. "We felt our lives were in danger. We are traumatized."</p><p>A Harvard University Police Department spokesperson told the Crimson that students were "briefed about the false report." </p><p>The incident appears to be an example of swatting, where someone places a false call so officers show up at a residence. Massachussets has seen a number of swatting incidents in recent months. In late March, 28 communities in the state recieved similar swatting calls of an active shooter in high schools, the <a href="https://www.metrowestdailynews.com/story/news/2023/03/28/several-ma-high-schools-swatting-targeted-hoax-shooter-calls/70056300007/">Metro West Daily News</a> reported.  The calls came following a <a href="https://www.insider.com/nashville-covenant-elementary-school-woman-shot-adults-kids-police-say-2023-3">mass shooting at a school in Nashville, Tennessee</a> on March 27. </p><p>The incident at Harvard caused concern. In a <a href="https://www.facebook.com/photo.php?fbid=518583617143257&amp;set=a.477409451260674&amp;type=3">Facebook post</a>, The Harvard Black Alumni Society said they were "horrified and upset that Black student at Harvard endured such trauma in their own homes."</p><p>The Harvard University Police Department did not respond to Insider's request for comment at the time of publication.</p>

Harvard police raided a dorm where 4 Black students were living after someone made a false call about an active threat: 'We are traumatized'

<ul class="summary-list"><li>Biden announced a plan to give student loan borrowers relief and forgiveness of up to $20,000. </li><li>Sen. Elizabeth Warren has long advocated for more expansive forgiveness. </li></ul><p>Sen. Elizabeth Warren defended President Joe Biden's announcement to forgive up to $20,000 in federal sudent loans per borrower. </p><p>"This is about America investing in people who work hard, who play by the rules, and who just need a government on their side. And Joe Biden has done what Joe Biden does best. He has delivered for working families," Warren said on <a href="https://twitter.com/CNN/status/1563881643424768000">CNN's State of the Union. </a></p><blockquote class="twitter-tweet blockquote" data-lang="en" data-cards="" data-conversation="">—CNN (@CNN) <a href="https://twitter.com/mims/statuses/1563881643424768000">August 28, 2022</a></blockquote><p>Warren <a href="https://www.businessinsider.com/elizabeth-warren-democrats-praise-bidens-student-loan-debt-forgiveness-2022-8">is among several Democrats</a> who have advocated for <a href="https://www.businessinsider.com/chuck-schumer-urges-biden-student-loan-forgiveness-big-as-possible-2022-8">more expansive student loan forgiveness</a>, suggesting up to $50,000 per borrower. </p><p>On Sunday she told host Dana Bash that Biden's plan will help many people who need to the help to build "stronger futures."</p><p>"I am so happy to see what has happened. I recognize that, right now, hardworking families, middle-class families, working-class families have gotten some real relief," Warren said. </p><p>She added that the relief would help people who did not end up with a four-year college diploma. </p><p>"Remember, the majority of people are going to get $20,000 in student loan debt relief; 40 percent of the folks who have student loans do not have a college diploma, four-year diploma," she said. "These are people who are truck drivers and who are nail technicians and nurses' aides. They are actually going to get their debt canceled out. And that means they're going to be able to build stronger futures for themselves and for their children."</p><p>The Massachussets senator pushed back on remarks that the plan was "unfair" to people who already paid off their loans. She explained that her family was unable to send her to college, but she was able to attend "a public university that cost $50 a semester," which she paid for on a part-time waitressing job.</p><p>"I finished a four year diploma, I became a special education teacher, and it opened a million doors for me," Warren said.  "That opportunity is not out there today for any of our kids. Our public education system is no longer creating opportunities for kids like me and other kids whose families can't afford to write a check. Instead, we're saying to these young people, you have got to get an education, but we are going to wrap the chains of debt around you." </p>

Warren defends Biden's student loan relief plan: 'Our public education system is no longer creating opportunities for kids like me'

<ul class="summary-list"><li>Nancy Frates' son Pete helped make the Ice Bucket Challenge go viral five years before he died.</li><li>Some of the $220 million in donations helped pay for the development of a new drug to treat ALS.</li></ul><p>When Nancy Frates heard that the US Food and Drug Administration had approved a promising new drug for <a href="https://www.cdc.gov/als/WhatisALS.html">ALS</a> — the fatal motor neuron disease that took the life of <a href="https://www.businessinsider.com/peter-frates-who-started-viral-ice-bucket-challenge-dead-2019-12">Pete</a>, her son, she felt elation and sorrow.</p><p>"I was very happy, but I also had mixed emotions," Frates told Insider. "I just wished it had been available in time for my son," she added.</p><p>The 64-year-old said she took comfort from knowing that Pete, one of two men widely credited with popularizing the Ice Bucket Challenge — the viral stunt that raised more than $220 million for groups such as <a href="https://www.als.org/">The ALS Association</a> — had played a vital role in the achievement.</p><p>Scientists were able to develop the drug, in part, after receiving a percentage of the proceeds from the Ice Bucket Challenge.</p><h2>Frates said she would have done anything to try to prolong the life of her son</h2><p>The FDA approved the drug, called <a href="https://www.businessinsider.com/analysts-fda-approval-of-amylyx-als-drug-relyvrio-amx0035-2022-9">Relyvrio</a>, on September 29 after analyzing the findings of a clinical study. The results showed that ALS patients in the 137-person study who took the drug had experienced "a slower rate of decline" than those taking a placebo.</p><p>Amylyx Pharmaceuticals, the company behind the drug, has said it could extend the lives of people with ALS by five to six months, or more.</p><p>Frates told Insider she'd have given anything for Pete to have lived longer, even for a short amount of time.</p><p>"I would have loved to have had him with me for another 10 months to a year," Frates said.</p><div type="image" title="Nancy Frates, wearing a black T-shirt, sits alongside other members of her family, including her late son, Pete Frates, who inspired the ALS Ice Bucket Challenge." height="2932" width="3910" msid="94685913" hostid="261"></div><p>Frates said she and her husband, Jim, sat with Pete when he received the diagnosis. He was 27.</p><p>"We didn't know what we were going to hear," Frates said of the visit to his neurologist in 2012. Her son, a former captain of the Boston College baseball team, had told them only about some pain in his wrist, she said.</p><p>She said that when she heard that her son had ALS, also known as Lou Gehrig's disease, she "didn't know what it was."</p><p>"Like any parent would, I asked the doctor, 'Well, what do we do now?'" Frates said.</p><p>"He said, 'I'm sorry to tell you, but we've had virtually no progress in the fight against this disease. There's no treatment, there's no cure. And the prognosis is three to five years.'"</p><h2>Pete Frates wasted no time in raising money for research into ALS</h2><p>She said her son didn't pause for breath. He immediately called a family meeting consisting of his parents, his two siblings, and his then-girlfriend, Julie, whom he married the following year.</p><p>"Pete said, 'There will be no wallowing, there will be no whining, and we're going to get to work.'" Frates said.</p><div type="image" title="Nancy Frates is pictured with her late son, Pete, before he was diagnosed with ALS, the disease that took his life when he was just 34." height="374" width="499" msid="94685915" hostid="261"></div><p>It turned out that Pete had gone online and matched some of his symptoms — such as extreme exhaustion and muscle stiffness — with those of ALS. He'd been staggered by the lack of funding into researching the disease and by the lack of public awareness.</p><p>"He said, 'It's unacceptable,'" Frates said. "Then he said, 'We're going to change the trajectory of this disease.'"</p><p>She said he was never motivated by self-interest. "It was about how we could work together so that no other family had to go through this," Frates said, adding that her son had always been a "servant leader."</p><h2>Pete went on to communicate through a computer that responded to his eye movements</h2><p>Frates said her son "never broke down."</p><p>"He didn't want us to break, and he had a very spiritual side to him," she continued. "He felt it was the reason he'd be put on earth."</p><p>Pete became paralyzed and nonverbal within 2 ½ years of his diagnosis — he used eye-tracking software to type on his laptop — but he continued efforts to spread awareness.</p><p>"He said that if you could get people to open up their hearts to us, you could educate them about this disease and they would open up their wallets," Frates said.</p><div type="image" title="A group of people stand in a line wearing swimsuits, pouring water on their heads as part of the Ice Bucket Challenge." height="2171" width="2894" msid="94685918" hostid="261"></div><p>Pete promoted his fundraising and advocacy work across the internet. "Pete knew he was representing a new demographic," Frates said. "He wanted to show that it doesn't matter what your economic situation is, where you live, how old you are, or how much love you have in your life.</p><p>"He'd say: 'None of that matters. This disease wins. And we're changing that.'"</p><p>In 2014, Frates said, Pete and his friend <a href="https://www.insider.com/ice-bucket-challenge-co-creator-patrick-quinn-dies-at-age-37-2020-11">Pat Quinn</a>, a 30-year-old New Yorker with ALS, saw the potential of the Ice Bucket Challenge. The fundraising stunt — in which someone dumps ice water on their head or gets another person to do it for them — had already been tried by a few local US charities.</p><h2>Frates said her son 'got us on the path' to securing an effective treatment — and possibly even a cure — for ALS</h2><p>Frates said Quinn and her son took the concept to the global level to benefit <a href="https://www.als.org/">The ALS Association</a>. "They took hold of it," Frates said about their artful strategy on social media. "They knew this was it."</p><p>Clips went viral of people performing the challenge. As many as 17 million people were estimated to have taken part across the world. Public figures including Kim Kardashian, Dolly Parton, and Steven Spielberg were shown getting drenched. Frates said Pete got the biggest kick out of watching the video of <a href="https://www.businessinsider.com/the-bill-gates-ice-bucket-challenge-2014-8">Bill Gates</a>.</p><p>"Pete had told us, 'I'm going to get this disease in front of philanthropists, such as Bill Gates,'" Frates said. "And he did."</p><p>Frates said that Pete, who died in 2019 at the age of 34, was aware of the scientific progress that the Ice Bucket Challenge had paid for. "The doctors would fill him in," she said, adding, "He saw things happening in the ALS space when he was alive."</p><p>She went on, "He got us on the path and heading in the right direction when there was no path before."</p><div type="image" title="Lucy Frates, now 8, climbs onto the wheelchair of her dad, Pete, as her mom, Julie, looks on." height="3287" width="4383" msid="94685920" hostid="261"></div><p>She said that if her son were still alive, he would have been "joyful" about the approval of Relyvrio and "immediately" have signed the paperwork in the hopes of getting the new treatment.</p><p>"He would have looked at it as another step forward before getting back to work," said Frates, a trustee of <a href="https://www.endicott.edu/news-events/news/news-articles/2016/09/peter-frates-hall">Endicott College</a> in Massachussets which, in 2016, named one of its buildings after Pete.</p><p>Meanwhile, Frates said she saw Pete whenever she looked at his 8-year-old daughter, Lucy. "It's almost like her dad just lives inside of her," she said.</p><p>As for the future, Frates said the family would continue efforts to cure ALS in memory of Pete.</p><p>"I am blessed and proud to be Pete Frates' mom," she said. "I feel that I was chosen for that."</p>

The mom of a man behind the Ice Bucket Challenge says she's proud a new drug has been approved to treat ALS

<img src="https://static-ssl.businessinsider.com/image/5dc42d683afd374cb4105167-2400/gettyimages-1178411447.jpg" alt="Elizabeth Warren rally" /><ul><li><strong>A series of five reports that Barclays drew up last year drew a largely negative portrait of a Warren presidency, according to a recent <a href="https://www.motherjones.com/politics/2020/01/barclays-elizabeth-warren-wealth-tax-student-debt/" target="_blank" rel="noopener">Mother Jones report</a>.</strong></li><li><strong>They assessed negative impacts on private equity, the energy and tech sectors, as well as corporations.</strong></li><li><strong>But Barclays analysts also said that a Warren could be a boon to certain segments of the economy, like embattled regional banks.</strong></li><li><strong><a href="https://www.businessinsider.com">Visit Business Insider's homepage for more stories.</a></strong></li></ul><hr /><p>Investors are taking stock of what an Elizabeth Warren presidency could look like, and they're starting grow more fearful of her effect on their bottom line.</p><p><a href="https://www.motherjones.com/politics/2020/01/barclays-elizabeth-warren-wealth-tax-student-debt/" target="_blank" rel="noopener">Mother Jones reported on Friday</a> that the research arm of Barclays - a major bank that Warren has criticized in the past - circulated five reports late last year to paying investors looking to get ahead on the tumultuous Democratic primary.</p><p>Barclays reportedly analyzed around 50 of Warren's proposals to assess its impact on credit, municipal, and equity markets. Here are a handful of conclusions the London-based bank reached, <a href="https://www.motherjones.com/politics/2020/01/barclays-elizabeth-warren-wealth-tax-student-debt/" target="_blank" rel="noopener">per Mother Jones</a>:</p><ul><li>Getting rid of tax loopholes "would likely limit the size" of private equity.</li><li>Her proposals to break up tech companies would "be detrimental to the performance of these companies" and "erode the value of the companies that own them.</li><li>Eliminating fracking would be "broadly negative" for the energy sector.</li><li>Warren's corporate tax plan "would directly impact corporate earnings."</li><li>Her signature wealth tax plan would "likely crimp investment in the economy."</li></ul><p>The Barclays analysts also said that Warren might appoint regulators who give out much stiffer penalties for corporate wrongdoing. They also noted that she would have room as president to use executive orders and pass laws using that method.</p><p>It could lead to <a href="https://www.businessinsider.com/trumps-executive-power-weakens-conservative-agenda-democrat-2019-8">a similar approach</a> to power that former President Obama's had in his second term to advance his stalled domestic agenda. On Wednesday, Warren <a href="https://markets.businessinsider.com/news/stocks/elizabeth-warren-student-debt-forgiveness-congress-executive-power-day-one-2020-1-1028817082">unveiled another piece</a> of her student debt relief plan pledging to circumvent Congress and enact it using executive authority. </p><p>Still, they also said a Warren administration could benefit certain segments of the economy. If she were to break up Wall Street's biggest banks, the Barclays researchers said, the move could benefit smaller regional banks that have been squeezed as a result of consolidation.</p><p>The reported documents underscore pervasive views on Wall Street that her presidency would damage their way of doing business.</p><p>The Massachussets senator has centered her campaign around a vision of "big, structural change" that would fundamentally remake the American economy, and many of her proposals seek to tilt the scales of power away from corporations and the rich.</p><p>Warren's progressive candidacy has drawn broadsides from wealthy and financial titans over the past year. Microsoft founder Bill Gates criticized her wealth tax, which would slap a 2% levy on households with assets over $50 million and a 3% tax on those worth over $1 billion.</p><p>Among Warren's biggest critics on Wall Street have been hedgefund investor <a href="https://markets.businessinsider.com/news/stocks/leon-cooperman-says-elizabeth-warren-wealth-tax-hurting-american-dream-2019-10-1028624110">Leon Cooperman</a> and Goldman Sachs CEO Lloyd Blankfein. But she's <a href="https://www.businessinsider.com/elizabeth-warren-billionaire-calculator-targets-bill-gates-leon-cooperman-2019-11">often welcomed those public clashes</a> and even used it for her campaign ads.</p><p class="tagline"><a href="https://www.businessinsider.com/intelligence/banking?IR=T&amp;itm_source=businessinsider&amp;itm_medium=ctgr_bii&amp;itm_term=ctgr_subscription&amp;itm_content=wallstreet&amp;itm_campaign=banking-2"><img src="https://static.businessinsider.com/image/5dcb17d93afd371433387969" alt="Discover Business Insider Intelligence's  Newest Coverage Area: Banking" style="width: 100% !important" /></a></p>

Wall Street is more terrified of an Elizabeth Warren presidency than previously thought, new report finds

<p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5cc80ea8b14bf4126d1655e2-900/2667770517037494530197251256318388335177299o.jpg" border="0" alt="Ring" data-mce-source="Facebook/Ring" /><p class="source"><span>Facebook/Ring</span></p></div><p></p></div></div></p><ul class="summary-list"><li>Police who access video footage from <a href="https://businessinsider.com/category/amazon">Amazon's</a> <a href="https://www.businessinsider.com/category/ring">Ring</a> doorbell cameras can keep those videos forever and share them with anyone, even if the video includes no evidence of a crime, Amazon told a Senator earlier this month.</li><li><a href="https://www.businessinsider.com/category/ring">Ring</a> is partnered with over 600 police departments across the US, who can request footage from Ring security cameras with consumers' consent.</li><li><a href="https://www.businessinsider.com/category/amazon">Amazon</a> disclosed the fact that police can keep <a href="https://www.businessinsider.com/category/ring">Ring</a> videos forever in a response to a letter from Massachussetts Sen. Ed Markey, <a href="https://www.washingtonpost.com/technology/2019/11/19/police-can-keep-ring-camera-video-forever-share-with-whomever-theyd-like-company-tells-senator/">The Washington Post</a> first reported.</li><li><a href="https://businessinsider.com">Visit Business Insider's homepage for more stories.</a></li></ul><p>Thanks to Amazon's Ring network, more than 600 police departments across the US can now request video footage from internet-enabled, motion-detecting security cameras from thousands of people's homes.</p><p>Once police download those videos, they can keep them forever and share them with anyone, Amazon disclosed in response to questions from a US Senator earlier this month. That includes cases where Ring camera footage doesn't show any evidence of a crime.</p><p>Amazon vice president of public policy Brian Huseman made the disclosure in response to a letter from Massachussets Sen. Ed Markey, who has joined other lawmakers in <a href="https://www.markey.senate.gov/news/press-releases/senator-markey-investigation-into-amazon-ring-doorbell-reveals-egregiously-lax-privacy-policies-and-civil-rights-protections">raising concerns</a> surrounding what Ring's network means for the future of police surveillance.</p><p>"Amazon Ring's policies are an open door for privacy and civil liberty violations. If you're an adult walking your dog or a child playing on the sidewalk, you shouldn't have to worry that Ring's products are amassing footage of you and that law enforcement may hold that footage indefinitely or share that footage with any third parties," Markey said in a <a href="https://www.markey.senate.gov/news/press-releases/senator-markey-investigation-into-amazon-ring-doorbell-reveals-egregiously-lax-privacy-policies-and-civil-rights-protections">statement</a> Tuesday.</p><p>A Ring spokesperson told Business Insider that it's up to users whether to share video from their Ring cameras with police, emphasizing that police can only download footage if consumers consent. Ring founder Jamie Siminoff has defended the company's privacy practices in a <a href="https://blog.ring.com/2019/10/15/letter-from-jamie-siminoff-to-all-ring-neighbors-about-how-we-work-together-to-make-neighborhoods-safer/">blog post</a>.</p><p>"Ring users place their trust in us to help protect their homes and communities, and we take that responsibility very seriously. Ring does not own or otherwise control users' videos, and we intentionally designed the Neighbors Portal to ensure that users get to decide whether or not to voluntarily provide their videos to the police," the Ring spokesperson said.</p><p>In his letter to Markey, Huseman also clarified that Amazon lets police request up to 12 hours of Ring footage from any house that falls within a half-mile radius of a suspected crime scene from the past 45 days. Ring also states in its <a href="https://shop.ring.com/pages/terms">terms of service</a> that users must ensure cameras aren't recording video of areas outside their own property, but Huseman told Markey that Ring doesn't "view users' videos to verify compliance" with that policy.</p><p>"Connected doorbells are well on their way to becoming a mainstay of American households, and the lack of privacy and civil rights protections for innocent residents is nothing short of chilling," Markey said in a <a href="https://www.markey.senate.gov/news/press-releases/senator-markey-investigation-into-amazon-ring-doorbell-reveals-egregiously-lax-privacy-policies-and-civil-rights-protections">statement</a>.</p>  <p class="tagline"><a href="https://www.businessinsider.com/intelligence/40-big-tech-predictions-for-2019?IR=T&amp;itm_source=businessinsider&amp;itm_medium=ctgr_bii&amp;itm_term=ctgr_leadgen&amp;itm_content=amazon&amp;itm_campaign=40-big-tech-predictions-for-2019-2"><img src="https://static.businessinsider.com/image/5d371804a13c9573827f1cb9" alt="Exclusive FREE Slide Deck: 40 Big Tech Predictions for 2019 by Business Insider Intelligence" border="0" style="width: 100% !important" /></a></p>    <div class="margin-top">        <h3>NOW WATCH: <a href="https://www.businessinsider.com/ben-horowitz-what-companies-get-wrong-about-corporate-culture-2019-11">Legendary venture capitalist Ben Horowitz on culture mistakes most companies make, diversity in leadership, and the outlook for crypto</a></h3>        <div>            <iframe class="bijwplayerclass" data-player="jwplayer" src="https://content.jwplatform.com/players/hk3N1DsX-CEZHWCBG.html" width="100%" height="100%" frameborder="0" scrolling="auto" style="margin:0px;" allowfullscreen=""></iframe><script>function receiveMessage(event){ console.log(event.data.fullscreen); Android.fullscreen(event.data.fullscreen); }window.addEventListener("message", receiveMessage, false);</script>        </div>    </div>

Amazon says police can keep videos from Ring doorbells forever and share them with anyone

<p><div class="image-container float_right" style="width:400px"><div class="image"><img src="http://static3.businessinsider.com/image/5139264aeab8eaca2a00000b-511-383/dunkin-donuts.png?maxX=400" border="0" alt="dunkin donuts" width="400" /></div><p class="source"><a href="http://www.flickr.com/photos/dasqfamily/357031854/">flickr/dasqfamily</a></p></div>Even though Boston is under a strict lockdown during the <a href="http://www.businessinsider.com/police-name-boston-marathon-bombing-suspects-2013-4">manhunt for bombing suspect Dzhokhar Tsarnaev</a>, Massachusetts-based <a href="http://www.buzzfeed.com/jessicamisener/dunkin-donuts-in-boston-are-still-open-during-lockdown">Dunkin' Donuts remains open to serve first responders</a>, BuzzFeed reports.</p>
<p>A Newton store manager told BuzzFeed, <span>"There was an automated message going around telling businesses to close, but because we're <keyword id="6691703" type="UNKNOWN" weightage="60" keywordseo="Dunkin-Donuts">Dunkin' Donuts</keyword>, we called the police department and they said we didn't have to."</span></p>
<p><span>An official statement followed: <span>"At the direction of authorities, select Dunkin' Donuts restaurants in the Boston area are open to take care of the needs of law enforcement and first responders."</span></span></p>
<p>Customers have been Instagramming images of full stores. <a href="http://instagram.com/p/YSagR1rdU7/">Ahmed Eldin posted a picture with the caption,</a> "America still runs on Dunkin even during a lockdown. Dunkin Donuts at Prudential Center."</p>
<p>The chain hasn't promoted that it is open on social media, but it has discussed how it will help.</p>
<p>The Dunkin' Donuts Facebook page does have the message that it is donating $100,000 to The One Fund Boston, which will support family members of bombing victims. A post also states, "<span>Boston-area franchisees have been and will continue to support emergency workers in the community, including sending trucks to serve coffee and hot chocolate."</span></p>
<p><span></span>Grateful Massachussets natives have responded positively.<br /><br /><table class="image-container" width="200"><tr><td><div class="image"><img src="http://static1.businessinsider.com/image/517172626bb3f7ba45000000-405-153/screen shot 2013-04-19 at 12.35.02 pm.png" border="0" alt="dunkin donuts boston" /></div><p class="source">Facebook</p></td></tr></table></p>

Boston Dunkin' Donuts Remain Open To 'Take Care Of Law Enforcement And First Responders'

<p><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/58739110ee14b61b008b7383-2400/undefined" alt="Christophe Weber, Takeda" data-mce-source="REUTERS/Issei Kato" data-link="http://pictures.reuters.com/C.aspx?VP3=SearchResult&amp;VBID=2C0BXZGG1SZ74&amp;SMLS=1&amp;RW=1591&amp;RH=954#/SearchResult&amp;VBID=2C0BXZGG1SZ74&amp;SMLS=1&amp;RW=1591&amp;RH=954&amp;POPUPPN=3&amp;POPUPIID=2C0408TVXK6G2" /><p class="source"><span><a href="http://pictures.reuters.com/C.aspx?VP3=SearchResult&amp;VBID=2C0BXZGG1SZ74&amp;SMLS=1&amp;RW=1591&amp;RH=954#/SearchResult&amp;VBID=2C0BXZGG1SZ74&amp;SMLS=1&amp;RW=1591&amp;RH=954&amp;POPUPPN=3&amp;POPUPIID=2C0408TVXK6G2">REUTERS/Issei Kato</a></span></p><p class="caption">Takeda CEO Christophe Weber.</p></div><p></p></div></div>The Japanese pharmaceutical company Takeda is buying Cambridge, Massachussets-based ARIAD Pharmaceuticals for $24 a share.</p><p>The deal is valued at about $5.2 billion and expected to close in February.</p><p>"This is a very exciting time for Takeda as we will broaden our hematology portfolio and transform our global solid tumor franchise through the addition of two innovative targeted therapies," said Takeda CEO Christophe Weber in a statement.</p><p>"Opportunities to acquire such high-quality, complementary targeted therapies do not come often, and we are very excited about the potential for this transaction to benefit patients, our shareholders and other stakeholders."</p><p>Evercore advised Takeda, while JPMorgan, Goldman Sachs, and Lazard advised ARIAD.</p><p>Here's the press release:</p><p style="padding-left: 30px;">CAMBRIDGE, Mass. &amp; OSAKA, Japan--(<span><span><a href="http://www.businesswire.com/" rel="nofollow">BUSINESS WIRE</a></span></span>)--Takeda Pharmaceutical Company Limited (TSE:4502) ("Takeda") and ARIAD Pharmaceuticals, Inc. (NASDAQ:ARIA) ("ARIAD") today announced that they have entered into a definitive agreement under which Takeda will acquire all of the outstanding shares in ARIAD for $24.00 per share in cash, or an enterprise value of approximately $5.2 billion. The transaction has been approved unanimously by the boards of directors of both companies, and is expected to close by the end of February 2017, subject to required regulatory approvals and other customary closing conditions. Sarissa Capital, the holder of 6.6% of ARIAD's common shares, as well as each of the members of ARIAD's Board of Directors have agreed to tender their shares to Takeda pursuant to the offer.</p><p style="padding-left: 30px;">"The acquisition of ARIAD is a unique opportunity that will enable us to positively impact the lives of more patients worldwide, advance our strategic priorities and generate attractive returns for our shareholders," said Christophe Weber, president and chief executive officer of Takeda. "This is a very exciting time for Takeda as we will broaden our hematology portfolio and transform our global solid tumor franchise through the addition of two innovative targeted therapies. Opportunities to acquire such high-quality, complementary targeted therapies do not come often, and we are very excited about the potential for this transaction to benefit patients, our shareholders and other stakeholders."</p><p style="padding-left: 30px;">Paris Panayiotopoulos, president and chief executive officer of ARIAD, said, "We are very pleased to combine with Takeda, which will allow us to not only accelerate our mission to discover, develop and deliver precision therapies to patients with rare cancers, but also deliver immediate and meaningful value to our shareholders through a substantial cash premium. This exciting transaction is a testament to the hard work and dedication of ARIAD's talented team of employees. We have tremendous respect for Takeda, and I believe our shared commitment to innovation and research-driven cultures will provide for a smooth transition."</p><p style="padding-left: 30px;">"This transaction is a great outcome for shareholders of ARIAD and Takeda. Both ARIAD and Takeda are passionate about helping cancer patients, and I believe the talent and resources of Takeda coupled with ARIAD's pipeline and people will accelerate the development of cancer treatments. I would like to extend my deepest gratitude to the management team and everyone at ARIAD for their unrelenting dedication," said Alexander J. Denner, Ph.D., Chairman of the Board of ARIAD.</p><p style="padding-left: 30px;"><strong>Highly strategic deal which transforms global oncology portfolio and pipeline by expanding into solid tumors and reinforcing existing strength in hematology</strong></p><p style="padding-left: 30px;">The acquisition of ARIAD brings two innovative targeted therapies that will expand and enhance Takeda's existing oncology portfolio. Brigatinib, an investigational drug product, has the potential to add a differentiated, global therapy in a genetically-defined subpopulation of non-small cell lung cancer (NSCLC). The addition of Iclusig will broaden Takeda's strong hematology franchise to include chronic myeloid leukemia (CML) and a subset of acute lymphoblastic leukemia (ALL). Together, these two innovative targeted therapies will position Takeda for sustainable long-term growth in oncology.</p><p style="padding-left: 30px;">Takeda's track record of successful oncology product launches [ADCETRIS<sup>®</sup> (Brentuximab Vedotin), NINLARO<sup>TM </sup>(ixazomib) and VELCADE<sup>®</sup> (bortezomib)] means it has the experience and expertise required to deliver the successful launch of brigatinib and to ensure that it achieves global reach and share of voice thereafter.</p><p style="padding-left: 30px;"><strong>Accretive to Takeda's Underlying Core Earnings by FY2018 and generates immediate and long-term revenue growth</strong></p><p style="padding-left: 30px;">The transaction is a compelling opportunity for Takeda shareholders. It will provide immediate revenue, bring considerable long-term revenue potential and deliver synergy savings.</p><p style="padding-left: 30px;">ARIAD provided calendar year 2016 revenue guidance for Iclusig of $170-180 million, and Takeda expects significant long-term revenue potential from the two lead assets.</p><p style="padding-left: 30px;">Takeda projects the acquisition of ARIAD to be accretive to Underlying Core Earnings by FY2018 and broadly neutral in FY2017. Strong revenue growth and synergy savings will offset increased sales and <keyword id="6354839" type="ORGANIZATION" weightage="60" keywordseo="marketing">marketing</keyword> costs for the brigatinib launch.</p><p style="padding-left: 30px;"><strong>Attractive value drivers include two very innovative medicines, Iclusig and brigatinib, an exciting early stage pipeline and cost synergies</strong></p><p style="padding-left: 30px;">Iclusig, a commercialized therapy with continued strong sales growth potential, delivers immediate value. Brigatinib, an investigational drug product with peak annual sales potential of over $1 billion, will generate significant long-term value for Takeda. U.S. approval is expected in the first half of 2017 with global filing thereafter. Beyond Iclusig and brigatinib, ARIAD's commitment and expertise in targeted kinase inhibition linked to strong translational <keyword id="41551" type="ENTERTAINMENT" weightage="60" keywordseo="science">science</keyword> generated further pipeline opportunities which provide additional long-term upside potential.</p><p style="padding-left: 30px;">Takeda will leverage ARIAD's R&amp;D capabilities and platform, and largely absorb its R&amp;D costs within Takeda's existing R&amp;D budget. G&amp;A cost synergies will be fully captured by FY2018.</p><p style="padding-left: 30px;"><strong>Takeda retains financial flexibility with no impact on dividend policy</strong></p><p style="padding-left: 30px;">The transaction will be funded by up to $4.0 billion of new debt and the remainder from existing cash. FY2017 Net Debt/EBITDA is estimated at approximately 2.6x, which is expected to remain investment grade. The transaction has no impact on Takeda's dividend policy.</p>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/property-brothers-what-tricky-real-estate-code-words-really-mean-2016-12">The Property Brothers teach the actual meaning of tricky real estate 'code words'</a></h3>        <div>            <div>    <script src="http://player.ooyala.com/v3/6e12e8b3387a44daacfb73afba25a76e"></script>    <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="pwMHIzMzE6ScSRLxmN5b0zjEe3_Nvmgy" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div>    <script>    if (typeof RunFunctions === 'undefined') { var RunFunctions = []; }     RunFunctions.push(function()    {         var ooyalapopvideo = OO.Player.create('ooyalaplayer_popvideo', 'pwMHIzMzE6ScSRLxmN5b0zjEe3_Nvmgy',{ autoplay: 'false' });     });    </script>    <noscript><div>Please enable Javascript to watch this video</div></noscript></div>        </div>        <script>(function() { function createPlayer() { OO.ready(function() { RunFunctions.forEach(function(ooyalaFunction) { ooyalaFunction(); }); RunFunctions = [];}); } createPlayer(); }()); </script>    </div>

Takeda is buying ARIAD Pharmaceuticals in a $5.2 billion deal

<p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5d9354492e22af57f3217468-2400/gettyimages-871704830.jpg" border="0" alt="pat gelsinger vmware" data-mce-source="Horacio Villalobos-Corbis/Getty Images" data-mce-caption="VMware CEO Pat Gelsinger" /><p class="source"><span>Horacio Villalobos-Corbis/Getty Images</span></p><p class="caption">VMware CEO Pat Gelsinger</p></div><p></p></div></div></p><ul class="summary-list"><li><strong>Business Insider spoke with Pat Gelsinger, the CEO of VMware, about his career and the company's rise to becoming a superpower in the cloud wars. </strong></li><li><strong>When Gelsinger joined VMware in 2012, Amazon Web Services was seen as an existential threat. Gelsinger himself warned VMware partners that Amazon's growth in the cloud was poised to seriously undermine its business and pry away customers. </strong></li><li><strong>Gelsinger says that it didn't sit well with his own management team when in 2016 he decided that VMware would stop fighting Amazon Web Services head-on, and instead form a landmark partnership to integrate their technologies. </strong></li><li><strong>Amazon Web Services has a reputation for competing even with its own partners. Three years into the partnership, that threat remains. But the partnership has borne fruit with plenty of mutual customers. </strong></li><li><strong>Gelsinger says it was a "traumatic" transition, but the company has come out stronger.</strong></li><li><strong>"We want to be that platform where that can run both the past and the future in one common and consistent way, and do so whether it's in your data center or the cloud," Gelsinger says. "And if we accomplish that ... there's gold in those hills." </strong></li><li><strong><strong><a href="https://www.businessinsider.com/prime?module=article&amp;area=summary" target="_blank" rel="noopener" data-saferedirecturl="https://www.google.com/url?q=https://www.businessinsider.com/prime?module%3Darticle%26area%3Dsummary&amp;source=gmail&amp;ust=1570026728865000&amp;usg=AFQjCNHW3RQG5pWjjikWR54SPzNFGr6swg">Click here for more BI Prime stories.</a></strong></strong></li></ul><p>Technically speaking, Pat Gelsinger retired in 2009.</p><p>He started his career at Intel at just 17 years old, and finished his 30 years at the company with a resume including a stint as the chipmaker's CTO. Every month, he receives a pension check from Intel, he told Business Insider. (Intel says it doesn't comment on matters of compensation.) </p><p>In reality, Gelsinger says, his retirement basically consisted of a good night's sleep. One Monday, he went into Intel to say his final goodbyes. On Tuesday, he started work as president and COO of EMC, the <keyword id="6356323" type="UNKNOWN" weightage="100" keywordseo="enterprise">enterprise</keyword> IT giant.</p><p>Three years later, he went to VMware, then an EMC subsidiary, replacing <a href="https://www.businessinsider.com/vmware-ceo-handover-paul-maritz-pat-gelsinger-2012-8">industry legend Paul Maritz as CEO</a>. The company was the pioneer in the market for virtualization - a cornerstone technology to modern cloud computing. It remains a major IT industry standard: Every single company on the Fortune 500 counts itself as a customer.</p><p>But in the little over seven years since he took the role, VMware has also found itself undergoing reinvention, from a cloud computing also-ran into a key partner of Amazon Web Services, the dominant player in the market. It has also been <a href="https://www.businessinsider.com/how-vmware-became-the-secret-winner-of-the-cloud-wars-2019-7">cozying up to Microsoft Azure and Google Cloud</a>, Amazon's chief cloud rivals. </p><p>Next up, Gelsinger says, is another reinvention, expanding beyond the virtualization technology that made its name, and <a href="https://www.businessinsider.com/vmware-ceo-pat-gelsinger-firewall-cybersecurity-2019-3">making big bets on markets like cloud security</a> - and <a href="https://www.businessinsider.com/vmware-kubernetes-pivotal-heptio-sanjay-poonen-2019-9">especially on Kubernetes</a>, the Google-created open source software that has since become something of a standard in the industry. </p><p><strong>Read more: </strong><em><a href="https://www.businessinsider.com/vmware-kubernetes-pivotal-heptio-sanjay-poonen-2019-9">A top VMware exec says it's becoming the 'largest force' in the Google-made Kubernetes, as it places a 'huge bet' on a tech that many thought would kill it</a></em></p><p>And all of that, against the more recent backdrop of Dell's $67 billion acquisition of EMC, giving VMware a new corporate overlord - an overlord, incidentally, which considered going public in an aborted plan to acquire VMware, much to the <a href="https://markets.businessinsider.com/news/stocks/dell-vmware-merger-carl-icahn-opposes-deal-making-public-again-2018-10-1027617091">chagrin of investors like Carl Icahn</a>. More recently, <a href="https://www.businessinsider.com/vmware-acquires-pivotal-carbon-black-developers-analysts-2019-8">VMware announced its intentions to buy up Pivotal, a fellow Dell subsidiary, as well as cybersecurity company Carbon Black</a>.</p><p>This second stage of his career has been a little different to the first, the 57-year-old Gelsinger told Business Insider.</p><p>"I'm just working for fun, now," he joked.</p><p>Business Insider spoke to Gelsinger about how the company shifted itself to a major player in the cloud wars, the internal strife that came with the decision to partner with Amazon, and what comes next for the virtualization giant.</p><h2>Gelsinger goes way back with VMware</h2><p>Gelsinger said that even he didn't fully get what was so great about VMware, back when it was just a startup getting off the ground. He says that VMware actually came to him not long after it launched in 1998, when he was leading Intel's server business. </p><p>"Here comes [VMware cofounders Mendel Rosenblum and Diane Greene], and they're trying to explain to me that they can make 10 servers into one," Gelsinger recalls. "I'm responsible for the server CPU business at Intel, and turning 10 servers into one is not in my best interest, so what am I not understanding?" </p><p>VMware's approach to virtualization turned the server industry on its head. Simply put, virtualization helps slice a single server into multiple so-called virtual machines, or VMs. Each of those VMs has its own copy of an operating system, and gets allocated a portion of the physical server's processor and memory resources, in line with the needs of the application (like, say, an email server) it's supposed to run. </p><p>Apply this concept more broadly, and you have racks of ten servers that can do the work of a hundred, or a data center packed full of 50,000 servers, carrying the computing workload of a million. It's a concept that makes for the kind of incredible efficiencies of scale that allow mega-clouds like Amazon Web Services to afford to offer their customers functionally unlimited supercomputing power for fractions of a cent per hour. </p><p>The promise of VMware's technology only truly clicked for Gelsinger at an Intel Developer Forum event in the early '00s, he said, where Rosenblum was a speaker. Backstage, the two geeked out over VMotion, a then-new VMware product for moving virtual machines from one server to another with no downtime. He described the conversation as a "brain explosion," with the two executives talking through all the possibilities. </p><p>At some point after that, he said, he tried to get Intel to make VMware an acquisition offer, "but I could never get the stars aligning to make that happen." Ultimately, in 2003, EMC swooped in to acquire VMware for $625 million.</p><p>He got his second chance to get involved with VMware a few years later - part of his job at EMC was to manage the IT giant's relationship with VMware, by then its publicly-traded subsidiary. On a personal note, Gelsinger said that period was exhausting, as he split his time between EMC's Silicon Valley headquarters, and spending time with his family in Massachussets, where his daughters were attending college. </p><p>Diane Greene had only recently been ousted as CEO by VMware's board after a period of poor financial performance, to be replaced by former Microsoft exec Paul Maritz. By 2012, VMware was back on track, and Maritz was ready to move on to the new challenge of running Pivotal Labs, a spin-out combining assets from EMC, VMware, and previous acquisitions into one new software company. Gelsinger was tapped as the logical successor to Maritz.</p><p>"They wanted somebody who was still technical, but more operationally focused," said Gelsinger. </p><h2>The shift to the cloud</h2><p>Gelsinger boasts that VMware has only gotten bigger and broader since he took over. In 2012, VMware pulled in $4.6 billion in revenue, almost entirely from its core vSphere virtualization product. In February, VMware announced that it booked almost $9 billion in revenue for its 2019 fiscal year, which Gelsinger attributed to the evolution of its business to encompass new markets like cybersecurity, and its embrace of the cloud. </p><p>"We went from a product, to products, to solutions and cloud," said Gelsinger.</p><p>VMware had a rocky road to its current cloud strategy, however: At the time Gelsinger took over, VMware was feeling the competitive threat from Amazon Web Services. The fear was that customers would abandon their VMware virtualization infrastructure, and instead move to Amazon's home-grown alternatives.</p><p>That would be bad not only for VMware, but also for the partners and service providers who built their business on VMware's technology. In 2013, <a href="https://www.crn.com/news/cloud/240149626/vmware-top-execs-lash-out-at-amazon-public-cloud.htm?itc=xbodyjk">Gelsinger told a room full of partners</a> that if "a workload goes to Amazon, you lose, and we have lost forever." That same year, VMware launched vCloud Air, its own rival to AWS, to mitigate the threat.</p><p>Gelsinger said that while VMware saw "some success" with vCloud Air, it became clear that it wasn't the runaway hit it needed to be to play at the level of Amazon Web Services. That made it hard to justify the massive costs of running a global cloud platform, with all the data centers and talent that requires. </p><p>"While we were getting it right, we weren't really getting success with it at scale," Gelsinger said of vCloud Air. </p><p>And so, in 2016, VMware made the previously-unthinkable decision to stop fighting Amazon Web Services, and start embracing it. It gave up on vCloud Air, ultimately selling the business to French cloud provider OVH in 2017.</p><h2>Partnering with Amazon</h2><p>Gelsinger says that the "tough decision" to embrace, rather than fight, Amazon Web Services didn't sit well with many on his staff.</p><p>"We had the last and final decision-making meeting on this [Amazon partnership] seven times," Gelsinger said.</p><p>Putting aside the whiplash that comes with any major strategic shift, said Gelsinger, there were concerns over "Amazon's reputation as a partner." Just as in retail, Amazon is known in the cloud industry for being aggressive, and willing to compete with even its friends and allies.</p><p><strong>Read more: </strong><em><a href="https://www.businessinsider.com/how-vmware-became-the-secret-winner-of-the-cloud-wars-2019-7">How VMware became a secret superpower in the cloud wars and why Amazon Web Services should not be happy but Google and Microsoft are thrilled</a></em></p><p>"'This is just an on-ramp, they're going to steal your customers and workloads,'" Gelsinger recalled of the feedback he got. "Is this sustainable?" </p><p>The opportunity for VMware was too big to ignore, though, he said. Customers had spent years building all their applications on top of VMware technology; if those customers wanted to move to Amazon's cloud, there was an unmet need to help them do it without having to start over largely from scratch. Better yet, it provided a bridge between those existing servers and the cloud, enabling them to use a so-called hybrid cloud approach.</p><p>VMware's own cloud dreams may not have come fully to fruition, but it could play a major role in helping large companies take advantage of AWS. </p><h2>A 'traumatic' cloud transition</h2><p>Even with that in mind, though, VMware's own executives were less than certain.</p><p>"It was pretty traumatic, in that sense, for us," said Gelsinger. </p><p>There were technical questions around making sure that VMware's technology played nicely with AWS, to be sure. But there was the bigger question of whether the partnership was giving up a lot of ground to AWS for not enough in return.</p><p>"It wasn't just giving up on what we were already doing with vCloud Air," Gelsinger said. "It was, can we really go execute on this partnership? Are they going to be good partners as well?" </p><p>Gelsinger said that he stood his ground, and got all the technical and product people to handle all the little details that go into such a big partnership, from networking to storage to hardware.</p><p>Crawford Del Prete, president of analyst firm IDC, told Business Insider that Gelsinger's success in helping VMware navigate this transition highlights his best traits as a CEO and leader.</p><p>"He's this rare combination of how to motivate employees, how to paint a vision for employees...[but] also he's super, super technical, and understands what needs to be built, and what needs to be created," </p><p>For all that drama, VMware looks to have come through it stronger. He said that VMware has signed up "major customers" for its AWS-specific offerings, and that the VMware/AWS combo is now available in 18 international regions. </p><p>"We have executed. Not that any of these partnerships are perfect, but this is pretty good," he said.</p><p>Still, as Del Prete cautions, VMware isn't out of the woods yet: Amazon is "constantly innovating on its platform," he said, meaning that it could still come up with technology that undermines the VMware partnership, even as customers increasingly build their software using Amazon's own tools.  </p><h2>A maturing business model</h2><p>VMware is now established as a key player in the cloud wars: While AWS remains VMware's preferred cloud partner, it also recently inked technology integration deals with Microsoft Azure and Google Cloud. That means that any VMware-using company can more easily move their infrastructure to those clouds.</p><p>Next up, Gelsinger said, are some further shifts to the business. As VMware entrenches itself in the cloud, Gelsinger wants to pivot the company to fully embrace a subscription-based billing model, likening it to Microsoft's increased focus on software-as-a-service like the Office 365 suite. </p><p>It's an important transition for VMware, Gelsinger said. The bulk of the company's revenue comes from traditional software licensing, but subscription-based pricing based on usage is just how things are done in the cloud. While its largest customers often still operate their own data centers at large scales, that may not be true in the years or decades to come, and it falls on VMware to still support the old way while embracing the new. </p><p>"We've said, we're not getting rid of this business model, but we're adding to this business model," Gelsinger said. "I don't get to just flip you to the new busines model." </p><p>He highlights the acquisitions of device management company AirWatch and cloud monitoring service Cloudhealth, both of which bill under this kind of subscription model, as signs of VMware's growth in this area. Gelsinger said that those companies are actually helping VMware's sales and marketing teams rethink their overall approach, and that the company is making a lot of progress.</p><p>"Every one of these [acquisitions] has sort of helped us in that transition," says Gelsinger. "And we're well underway, you know, but I think we've got a solid year and a half or two years until I can declare us done." </p><h2>A better platform</h2><p>Technologically speaking, there's a big opportunity ahead for VMware, too. The company has staked its bets on Kubernetes, an open source software project that's proven extremely popular amongst cloud developers. VMware even last year acquired Heptio, founded by some of the former Googlers who invented Kubernetes.</p><p>What's funny about that is that Kubernetes is a technology for managing containers, a new way to run cloud applications considered by many to be an alternative to VMware-style virtualization. Indeed, many thought the rise of Docker, the company that popularized containers in their current form, would do irreperable harm to VMware. </p><p>Instead, Gelsinger said, it's proven to be yet another opportunity for VMware. It's true that a lot of new cloud software is being written with Kubernetes in mind, he says, but also, larger companies are still reliant on that more traditional virtualization approach. Gelsinger said that Heptio is already giving it the technology to help customers manage software running in both kinds of environments. </p><p>"The Heptio acquisition for us is maybe one of the most strategic things that we've done over the last year or two," Gelsinger said. </p><p>Del Prete, the analyst, said that VMware's push into Kubernetes is important for making sure that developers keep building on the company's tools. As developers increasingly move to Kubernetes, Del Prete said, it also falls on Gelsinger and VMware to make sure it moves with them, or else get left behind.</p><p>Gelsinger might have a broader vision in mind, however. He said that "Kubernetes and containers is the software abstraction that we believe will define the next two decades of software," in much the same way that Java remains a standard in enterprise IT after decades. By bridging the old and new, across both clouds and traditional servers, Gelsinger said, VMware is poised for success.</p><p>"We want to be that platform where that can run both the past and the future in one common and consistent way, and do so whether it's in your data center or the cloud," Gelsinger said. 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VMware CEO Pat Gelsinger explains how the 'traumatic' decision to work with Amazon Web Services led to it becoming a secret superpower in the cloud wars

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