Is HP’s Forthcoming Split A Good Idea?
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HP Has released its financial results for the third quarter and they make for somewhat grim reading.
The company has seen drops in key parts of the business and an overall drop in GAAP net revenue of eight percent year on year to $25.3bn, compared with $27.6bn in 2014.
The company failed to meet its projected net earnings per share, which it had put at $0.50-$0.52, with an actual figure of $0.47.
The figures reflect a time of deep uncertainty at the company as it moves ever closer to its demerger into HP and Hewlett Packard Enterprise. The latter began filing registration documents in July to assert its existence as a separate entity, while the boards of both companies were announced two weeks ago.
Dell CEO Michael Dell slammed the move in an exclusive interview with The INQUIRER, saying he would never do the same to his company.
The big boss at HP remained upbeat, despite the drop in dividend against expectations. “HP delivered results in the third quarter that reflect very strong performance in our Enterprise Group and substantial progress in turning around Enterprise Services,” said Meg Whitman, chairman, president and chief executive of HP.
“I am very pleased that we have continued to deliver the results we said we would, while remaining on track to execute one of the largest and most complex separations ever undertaken.”
To which we have to ask: “Which figures were you looking at, lady?”
Breaking down the figures by business unit, Personal Systems revenue was down 13 percent year on year, while notebook sales fell three percent and desktops 20 percent.
Printing was down nine percent, but with a 17.8 percent operating margin. HP has been looking at initiatives to create loyalty among print users such as ink subscriptions.
The Enterprise Group, soon to be spun off, was up two percent year on year, but Business Critical system revenue dropped by 21 percent, cancelled out by networking revenue which climbed 22 percent.
Enterprise Services revenue dropped 11 percent with a six percent margin, while software dropped six percent with a 20.6 percent margin. Software-as-a-service revenue dropped by four percent.
HP Financial Services was down six percent, despite a two percent decrease in net portfolio assets and a two percent decrease in financing volume.
Source- http://www.thegurureview.net/computing-category/is-hps-forthcoming-split-a-good-idea.html
Is Oracle Sliding?
Oracle said weak sales of its traditional database software licenses were made worse by a strong US dollar lowered the value of foreign revenue.
Shares of Oracle, often seen as a barometer for the technology sector, fell 6 percent to $42.15 in extended trading after the company’s earnings report on Wednesday.
Shares of Microsoft and Salesforce.com, two of Oracle’s closest rivals, were close to unchanged.
Daniel Ives, an analyst at FBR Capital Markets said that this announcement speaks to the headwinds Oracle is seeing in the field as their legacy database business is seeing slowing growth.
It also shows that while Cloud business has seen pockets of strength it is not doing as well as many thought,
Oracle, like other established tech companies, is looking to move its business to the cloud-computing model, essentially providing services remotely via data centres rather than selling installed software.
The 38-year-old company has had some success with the cloud model, but is not moving fast enough to make up for declines in its traditional software sales.
Oracle, along with German rival SAP has been losing market share in customer relationship management software in recent years to Salesforce.com, which only offers cloud-based services.
Because of lower software sales and the strong dollar, Oracle’s net income fell to $2.76 billion, or 62 cents per share, in the fourth quarter ended May 31, from $3.65 billion, or 80 cents per share, a year earlier.
Revenue fell 5.4 percent to $10.71 billion. Revenue rose 3 percent on a constant currency basis. Analysts had expected revenue of $10.92 billion, on average.
Sales from Oracle’s cloud-computing software and platform service, an area keenly watched by investors, rose 29 percent to $416 million.
Can MB Challenge Tesla?
June 22, 2015 by admin
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On the heels of Tesla announcing a home and commercial battery product line, Mercedes-Benz unveiled its own brand of energy storage products for those with solar systems to store surplus power.
The Mercedes-Benz energy storage plants for private use are available for order now and are expected to ship in September.
The batteries were first developed for cars, but Mercedes-Benz said the energy storage units “meet the very highest safety and quality standards” for home use.
Up to eight battery modules with an energy capacity of 2.5 kWh can be combined into an energy storage plant with a capacity of 20 kWh.
“Households with their own photovoltaic systems can thus buffer surplus solar power virtually free of any losses,” the carmaker said in a statement.
What wasn’t announced by Mercedes-Benz was information about the size of or pricing for the new batteries.
In May, Tesla announced its Powerwall batteries for home use and its Powerpack batteries for commercial use. Today, Tesla CEO Elon Musk announced his company would double the power output of the Powerwall batteries but keep their prices the same.
Tesla’s Powerwall batteries will go from having a two-kilowatt (kW) steady power output and 3.3kW peak output to a 5kW steady output and 7kW peak output, Musk said. The price of the batteries will remain the same: $3,000 for the 7kW/hour (KWh) daily cycle version and $3,500 for the 10kWh backup UPS version. Total installation cost will run around $4,000, according to Musk.
Up to nine Powerwall battery units can be daisy-chained together on a wall to provide up to 90kWh of power.
The average U.S. household uses about 20 kWh to 25 kWh of power every day, according to GTM Research.
Tesla Energy’s new commercial-grade battery is called the Powerpack, and will sell in 100kWh modules for $25,000 each. Musk said the Powerpack can scale infinitely, even powering factories and small cities.
Mercedes-Benz’s batteries, being produced by subsidiary Deutsche Accumotive, are its first industrial-scale lithium-ion units, and they’ve already been tested “on the grid,” the company said.
Oracle Launches OpenStack Platform With Intel
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Oracle and Intel have teamed up for the first demonstration of carrier-grade network function virtualization (NFV), which will allow communication service providers to use a virtualized, software-defined model without degradation of service or reliability.
The Oracle-led project uses the Intel Open Network Platform (ONP) to create a robust service over NFV, using intelligent direction of software to create viable software-defined networking that replaces the clunky equipment still prevalent in even the most modern networks.
Barry Hill, Oracle’s global head of NFV, told The INQUIRER: “It gets us over one of those really big hurdles that the industry is desperately trying to overcome: ‘Why the heck have we been using this very tightly coupled hardware and software in the past if you can run the same thing on standard, generic, everyday hardware?’. The answer is, we’re not sure you can.
“What you’ve got to do is be smart about applying the right type and the right sort of capacity, which is different for each function in the chain that makes up a service.
“That’s about being intelligent with what you do, instead of making some broad statement about generic vanilla infrastructures plugged together. That’s just not going to work.”
Oracle’s answer is to use its Communications Network Service Orchestration Solution to control the OpenStack system and shrink and grow networks according to customer needs.
Use cases could be scaling out a carrier network for a rock festival, or transferring network priority to a disaster recovery site.
“Once you understand the extent of what we’ve actually done here, you start to realize just how big an announcement this is,” said Hill.
“On the fly, you’re suddenly able to make these custom network requirements instantly, just using off-the-shelf technology.”
The demonstration configuration optimizes the performance of an Intel Xeon E5-2600 v3 processor designed specifically for networking, and shows for the first time a software-defined solution which is comparable to the hardware-defined systems currently in use.
In other words, it can orchestrate services from the management and orchestration level right down to a single core of a single processor, and then hyperscale it using resource pools to mimic the specialized characteristics of a network appliance, such as a large memory page.
“It’s kind of like the effect that mobile had on fixed line networks back in the mid-nineties where the whole industry was disrupted by who was providing the technology, and what they were providing,” said Hill.
“Suddenly you went from 15-year business plans to five-year business plans. The impact of virtualization will have the same level of seismic change on the industry.”
Today’s announcement is fundamentally a proof-of-concept, but the technology that powers this kind of next-generation network is already evolving its way into networks.
Hill explained that carrier demand had led to the innovation. “The telecoms industry had a massive infrastructure that works at a very slow pace, at least in the past,” he said.
“However, this whole virtualization push has really been about the carriers, not the vendors, getting together and saying: ‘We need a different model’. So it’s actually quite advanced already.”
NFV appears to be the next gold rush area for enterprises, and other consortium are expected to make announcements about their own solutions within days.
The Oracle/Intel system is based around OpenStack, and the company is confident that it will be highly compatible with other systems.
The ‘Oracle Communications Network Service Orchestration Solution with Enhanced Platform Awareness using the Intel Open Network Platform’ – or OCNSOSWEPAUTIONP as we like to think of it – is currently on display at Oracle’s Industry Connect event in Washington DC.
The INQUIRER wonders whether there is any way the marketing department can come up with something a bit more catchy than OCNSOSWEPAUTIONP before it goes on open sale.
HP’s Helion Goes Commercial
HP has announced general availability of its Helion OpenStack cloud platform and Helion Development Platform based on Cloud Foundry.
The Helion portfolio was announced by HP earlier this year, when the firm disclosed that it was backing the OpenStack project as the foundation piece for its cloud strategy.
At the time, HP issued the HP Helion OpenStack Community edition for pilot deployments, and promised a full commercial release to follow, along with a developer platform based on the Cloud Foundry code.
HP revealed today that the commercial release of HP Helion OpenStack is now available as a fully supported product for customers looking to build their own on-premise infrastructure-as-a-service cloud, along with the HP Helion Development platform-as-a-service designed to run on top of it.
“We’ve now gone GA [general availability] on our first full commercial OpenStack product and actually started shipping it a couple of weeks ago, so we’re now open for business and we already have a number of customers that are using it for proof of concept,” HP’s CloudSystem director for EMEA, Paul Morgan said.
Like other OpenStack vendors, HP is offering more than just the bare OpenStack code. Its distribution is underpinned by a hardened version of HP Linux, and is integrated with other HP infrastructure and management tools, Morgan said.
“We’ve put in a ton of HP value add, so there’s a common look and feel across the different management layers, and we are supporting other elements of our cloud infrastructure software today, things like HP OneView, things like our Cloud Service Automation in CloudSystem,” he added.
The commercial Helion build has also been updated to include Juno, the latest version of the OpenStack framework released last week.
Likewise, the HP Helion Development Platform takes the open source Cloud Foundry platform and integrates it with HP’s OpenStack release to provide an environment for developers to build and deploy cloud-based applications and services.
HP also announced an optimised reference model for building a scalable object storage platform based on its OpenStack release.
HP Helion Content Depot is essentially a blueprint to allow organisations or service providers to put together a highly available, secure storage solution using HP ProLiant servers and HP Networking hardware, with access to storage provided via the standard OpenStack Swift application programming interfaces.
Morgan said that the most interest in this solution is likely to come from service providers looking to offer a cloud-based storage service, although enterprise customers may also deploy it internally.
“It’s completely customisable, so you might start off with half a petabyte, with the need to scale to maybe 2PB per year, and it is a certified and fully tested solution that takes all of the guesswork out of setting up this type of service,” he said.
Content Depot joins the recently announced HP Helion Continuity Services as one of the growing number of solutions that the firm aims to offer around its Helion platform, he explained. These will include point solutions aimed at solving specific customer needs.
The firm also last month started up its HP Helion OpenStack Professional Services division to help customers with consulting and deployment services to implement an OpenStack-based private cloud.
Pricing for HP Helion OpenStack comes in at $1,200 per server with 9×5 support for one year. Pricing for 24×7 support will be $2,200 per server per year.
“We see that is very competitively priced compared with what else is already out there,” Morgan said.
Rackspace Goes Openstack
Rackspace has finally deployed an Openstack based cloud, playing down claims that it benefits the most from the alliance.
Rackspace is one of the leaders of the Openstack alliance, an open source cloud initiative that aims to break Amazon’s stranglehold on the industry by offering open application programmable interfaces (APIs). Until now Openstack has largely been all talk, but Rackspace has deployed a production Openstack cloud that the firm claims will help it sell Openstack to the enterprise.
Fabio Torlini, VP of cloud at Rackspace said the firm has been “going flat out to make the code production ready”. Torlini said Rackspace’s decision to deploy an Openstack based cloud could be a tipping point in deployment. “It’s going to be the catalyst for many other companies deploying Openstack,” said Torlini.
Rackspace has been the largest contributor to Openstack and the fact that it has the first major Openstack deployment support claims that Rackspace is getting the most out of Openstack.
However Torlini said, “For us, we’re able to be the first one to launch a large scale Openstack compute platform because, yes, we are one of the main providers of the original code and we are a founder of Openstack, so we have tried to develop Openstack as a neutral foundation and it is a foundation to provide a service to all its members. But we’re lucky enough to be one of the founder members, to be able to drive it, and get there [deployment] first.”
Torlini defended Rackspace’s role in the Openstack alliance, claiming the strong leadership shown by the firm is good for the community. Torlini said, “Openstack is beneficial to the product itself but that’s the whole point. The whole idea of many more providers going onto Openstack helping develop the Openstack cloud, helping advance the actual products and code is the whole point of Openstack. On the counter side of that argument is if it’s beneficial for us it is just as beneficial for any other member of Openstack because they have access to the same code and they are able to provide.”
Torlini admitted that Openstack and the community is an advantage for the firm but claimed it wasn’t possible for Rackspace to dominate. “You have companies in Openstack that are far larger than Rackspace enabled to put much more resources into Openstack as well, it’s impossible for us to dominate Openstack – it’s an independent foundation. Is it advantageous from a product perspective? I should damn well hope so,” said Torlini.
Are Cloud Services A Risk?
Security experts have warned that the cloud could suffer the same kind of collapses that plague the financial system. Bryan Ford at Yale University in New Haven says that the full risks of this migration have yet to be explored. Complex systems, such as the Cloud, can fail in many unexpected ways and outlines various simple scenarios in which a cloud could come unstuck.
He said that a cloud could experience a full meltdown that could threaten any business. Ford said that while individual systems on a cloud might play nice, if you have other application providers in the same cause problems for another. He came up with a scenario were two conflicting load balancing programs operate with the same refresh period and when these periods coincide, the control loops start sending the load back and forth between the virtual servers in a positive feedback loop.
He said that “This simplistic example might be unlikely to occur in exactly this form on real systems—or might be quickly detected and “?xed” during development and testing—but it suggests a general risk.” Ford said that similar problems happened during ?nancial industry crashes.