Integris CEO Kristina Bergman. (Integris Photo). Back in 2016, a Seattle startup called Integris with a modest $3 million in funding and a vision to help companies manage customer data with integrity. Fast-forward to 2019, when privacy issues are making daily headlines as politicians seek to rein in Big Tech, and business is booming for Integris. In a little over two quarters, Integris more than tripled its team to 30 full-time employees. The startup opened a second office in Vancouver, B.C. and is working with a number of Fortune 500 companies to help them implement data protection and privacy standards. Integris’ growth is driven by new laws in the U.S. and Europe that seek to crack down on tech companies that handle consumer data. The European Union is spearheading the effort with its broad General Data Protection Regulation. In the U.S., federal regulation has been sluggish as states step in to implement their own laws. Last summer, to give consumers more control over their data and dozens of other states are considering similar laws. Related: “When we started three years ago, most people couldn’t spell GDPR … but fast forward a few years and privacy is in the headlines,” said Integris co-founder Kristina Bergman. “It’s front page news in all the major publications and so the biggest thing that we’ve seen is a huge awakening among people everywhere about the impacts of privacy, the importance of privacy, and we’ve seen a lot of market maturity happen over the last few years.” Ironic as it might sound, big tech companies are . Apple and Microsoft have been actively promoting themselves as the secure, privacy-sensitive foils to their younger tech industry peers. It’s catching on. In March, Facebook by doubling down on encrypted, ephemeral messaging. But there is a growing concern in the business community about a future in which companies that handle consumer data are forced to comply with different laws in every state. “The concern is that if the federal government doesn’t step up and unify it in the way that Europe unified privacy legislation under GDPR, we’re going to end up with a privacy legislation framework in the U.S. that’s incredibly fractured, very hard to comply with, and not really feasible and implementable,” said Bergman. That fear is leading a number of tech leaders to support a federal privacy law that would pre-empt state regulations. Related: Integris surveyed 258 business executives at companies with 500 employees or more and at least $25 million in annual revenue as part of released Monday. Of those surveyed, 80 percent believe there should be a federal privacy law, though they may not be ready for it. About half of the respondents said they take inventory of the personal data they store just once a year or in response to an audit. However, 88 percent said their companies are increasing their data privacy management budgets in 2019. “What’s been a boon to the business is not the murkiness but the opportunity that privacy presents,” Bergman said. “In our discussions with companies, they’re looking at privacy increasingly as a differentiator for their business … they look at that as an opportunity to differentiate against their competition by being able to prove that they’re operating with integrity, they’re treating customer data with the utmost care, and they can prove it.” Integris’ goal is to help companies set up best practices in data privacy. The company uses machine learning and other technology to map a company’s sensitive data, apply regulatory obligations, and automate actions like encryption and deletion. On top of its initial $3 million round, last summer to amp up its regulatory compliance services.
Seattle’s tech scene has been built based on nitty-gritty infrastructure. (GeekWire Photo / Kurt Schlosser) Despite all its success, Seattle’s tech community needs an unprecedented win to take it to the next level — a fast-growing, world-changing startup that creates a huge return for its backers and sparks a new wave of angel investing. The challenge: this isn’t what has historically fueled the region’s tech sector. But all of the work so far might have laid the foundation for this next generation. Those are some of the takeaways from a conversation with GeekWire co-founder John Cook on an episode of a new podcast from the Seattle Metropolitan Chamber of Commerce, hosted by Seattle Metro Chamber CEO Marilyn Strickland. “In past because Seattle is isolated in the Northwest and doesn’t sit in a big media hub, a lot of the innovations and creations that you’ve seen come out of Seattle are what you would maybe call a bit more boring,” Cook said on the show. “There’s a reason why enterprise software and cloud computing have grown up here.” It’s “the nitty-gritty infrastructure,” the technology that “makes everything work,” he said. GeekWire co-founder John Cook “It’s extremely important. There’s a ton of money in it,” he said. “There are some amazingly valuable companies that are growing up in this area. And so I think Seattle historically has been able to develop technologies in hard and complex areas — and that’s a real benefit.” Historically, that has translated into long company life cycles, not the breakout successes more common in Silicon Valley. Examples from Seattle include Tableau Software, the data visualization company that went public in 2013, a decade after it was founded; and travel and expense management company Concur Technologies, which sold to SAP in 2014 for $8.3 billion, more than a decade after it was founded. “What Seattle needs in order to spark this next generation of capital and investing is a home run that hits really quickly, like an Instagram … where twenty or thirty angels are invested in it and they make a crap-ton of money really quickly,” Cook said. Seattle Metro Chamber CEO Marilyn Strickland hosts the Chamber’s new “Under Construction” podcast. While it might not lend itself to such rapid growth, health technology is one promising area, he said. Much of the breakthroughs in that space would be impossible without the cloud infrastructure coming out of Seattle. Innovative health technology is “an area that I think is just going to accelerate and I think Seattle is really interestingly positioned for that with Amazon Web Services and Microsoft Azure,” Cook said. “Cloud computing is going to power the intelligence behind the ability for these researchers to … make the medicines or the cures that they want to go after.” “I see that transformation really happening in a big way and Seattle being positioned very well for that with the scientific health research, with UW, Fred Hutch and then the computing horsepower from Amazon, Microsoft and others.” Listen to the “Under Construction” podcast above, which includes more of Cook’s comments on Seattle and tech. Listen more episodes of the Seattle Chamber’s Under Construction podcast and (We’re featuring the discussion as part of a new GeekWire series spotlighting some some of our favorite podcasts about startups, leadership, technology, science and more from the Seattle region and beyond. Email suggestions for future guest podcasts to firstname.lastname@example.org.)
smartphone marketshare data for the just gone holiday quarter highlights the challenge for device makers going into the which kicks off in Barcelona next week: The analyst’s data shows global smartphone sales stalled in Q4 2018, with growth of just 0.1 per cent over 2017’s holiday quarter, and 408.4 million units shipped. tl;dr: high end handset buyers decided not to bother upgrading their shiny slabs of touch-sensitive glass. Gartner says recorded its worst quarterly decline (11.8 per cent) since Q1 2016, though the iPhone maker retained its second place position with 15.8 per cent marketshare behind market leader Samsung (17.3 per cent). Last month the company to expect reduced revenue for its fiscal Q1 — and went on to report year over year. The South Korean mobile maker also lost share year over year (declining around 5 per cent), with Gartner noting that high end devices such as the , and struggled to drive growth, even as Chinese rivals ate into its mid-tier share. Huawei was one of the rivals causing a headache for Samsung. It bucked the declining share trend of major vendors to close the gap on Apple from its third placed slot — selling more than 60 million smartphones in the holiday quarter and expanding its share from 10.8 per cent in Q4 2017 to 14.8 per cent. Gartner has dubbed 2018 “the year of Huawei”, saying it achieved the top growth of the top five global smartphone vendors and grew throughout the year. This growth was not just in Huawei “strongholds” of China and Europe but also in Asia/Pacific, Latin America and the Middle East, via continued investment in those regions, the analyst noted. While its expanded mid-tier Honor series helped the company exploit growth opportunities in the second half of the year “especially in emerging markets”. By contrast Apple’s double-digit decline made it the worst performer of the holiday quarter among the top five global smartphone vendors, with Gartner saying iPhone demand weakened in most regions, except North America and mature Asia/Pacific. It said iPhone sales declined most in Greater China, where it found Apple’s market share dropped to 8.8 percent in Q4 (down from 14.6 percent in the corresponding quarter of 2017). For 2018 as a whole iPhone sales were down 2.7 percent, to just over 209 million units, it added. “Apple has to deal not only with buyers delaying upgrades as they wait for more innovative smartphones. It also continues to face compelling high-price and midprice smartphone alternatives from Chinese vendors. Both these challenges limit Apple’s unit sales growth prospects,” said Gartner’s Anshul Gupta, senior research director, in a statement. “Demand for entry-level and midprice smartphones remained strong across markets, but demand for high-end smartphones continued to slow in the fourth quarter of 2018. Slowing incremental innovation at the high end, coupled with price increases, deterred replacement decisions for high-end smartphones,” he added. Further down the smartphone leaderboard, Chinese OEM, Oppo, grew its global smartphone market share in Q4 to bump Chinese upstart, and bag fourth place — taking 7.7 per cent vs Xiaomi’s 6.8 per cent for the holiday quarter. The latter had a generally flat Q4, with just a slight decline in units shipped, according to Gartner’s data — underlining Xiaomi’s motivations for . Because, well, with eye-catching innovation stalled among the usual suspects (who’re nontheless raising high end handset prices), there’s at least an opportunity for buccaneering underdogs to smash through, grab attention and poach bored consumers. Or that’s the theory. Consumer interest in ‘foldables’ very much remains to be tested. In 2018 as a whole, the analyst says global sales of smartphones to end users grew by 1.2 percent year over year, with 1.6 billion units shipped. The worst declines of the year were in North America, mature Asia/Pacific and Greater China (6.8 percent, 3.4 percent and 3.0 percent, respectively), it added. “In mature markets, demand for smartphones largely relies on the appeal of flagship smartphones from the top three brands — Samsung, Apple and Huawei — and two of them recorded declines in 2018,” noted Gupta. Overall, smartphone market leader Samsung took 19.0 percent marketshare in 2018, down from 20.9 per cent in 2017; second placed Apple took 13.4 per cent (down from 14.0 per cent in 2017); third placed Huawei took 13.0 per cent (up from 9.8 per cent the year before); while Xiaomi, in fourth, took a 7.9 per cent share (up from 5.8 per cent); and Oppo came in fifth with 7.6 per cent (up from 7.3 per cent).