Will Qualcomm Give Some Workers The Boot?

Qualcomm is undergoing major restructuring and one side-effect of the overhaul is that some 4,000 jobs might be slashed.

The company, according to our well informed industry sources, will announce this during the upcoming Qualcomm Q3 FY15 earnings conference call that Is scheduled for July 22. We could not find out which jobs will be affected, but we expect that the company will shad more light on it during the call.

In December 2014 the company announced that it would slash some 900 jobs and it ended up slashing roughly 1,500 jobs. This will be the first major announcement and it comes at a bad time, as the company’s sales numbers are not that great. Qualcomm lost its highest end customer, Samsung, and companies like HTC who are using the Snapdragon 810 are not too happy about company’s highest end SoC offering.

Qualcomm has around 31,300 employees, which is still not that much considering that Intel has some 100,000, but its main SoC competitor, MediaTek, has just over 10,000 employees making its operational costs much smaller.

If the number of employees 31,300 didn’t change in recent months, slashing 4,000 jobs would mean cutting the 12.8 percent of the workforce. This is a major adjustment, no question about it.

Still, we believe that the server division will start making some money in 2016 and the new Snapdragon 820 is expected to start shipping later this year. In the long run, the company is more than fine, it is just that the competitors have changed from Nvidia and Intel to MediaTek.

Source

Is Yahoo Growing?

Yahoo’s share gains since November from a partnership with Mozilla may be a clue about whether the search company can gain new users through the just-announced contract to change Internet Explorer’s and Chrome’s default search through installations of Oracle’s Java.

Although the news of the Yahoo-Oracle partnership got the lion’s share of attention, CEO Marissa Mayer also used last week’s shareholder meeting to mention the Mozilla pact.

The five-year contract with Mozilla, the maker of Firefox, has boosted Yahoo’s share of the U.S. search market, but growth has stalled for the last three months, according to measurement company comScore.

On Wednesday, Mayer asserted that the Mozilla deal — negotiated last fall — was “profitable,” but didn’t provide any numbers to back that up. Neither Yahoo nor Mozilla has disclosed how much the former paid to become Firefox’s default search engine in the U.S.

By comScore’s measurement, Yahoo accounted for 12.7% of all U.S. searches in May, the same share it controlled in both March and April. Although that was 2.5 percentage points higher than in November 2014 — before Firefox began urging users to accept Yahoo as the default — and represented a six-month increase of 25%, May’s share was down from the January peak of 13%.

From all indications, Yahoo has gotten as much out of the Firefox deal as it will likely get. The flip-side is that Yahoo has hung onto most of what it grabbed from Google — Firefox’s previous default — even as Google has tried to get users to return.

For May, comScore pegged Google’s share at 64.1%, down one-tenth of a percentage point from the month prior. Microsoft’s share rose that one-tenth of a point to end May at 20.3%. Because Bing powers Yahoo’s search results, Microsoft’s technology accounted for 31.4% of all U.S. searches, still less than half Google’s 65.2%.

Source

IBM Partners With BOX

IBM and BOX have signed a global agreement to combine their strengths into a cloud powerhouse.

The star-crossed ones said in a joint statement: “The integration of IBM and Box technologies, combined with our global cloud capabilities and the ability to enrich content with analytics, will help unlock actionable insights for use across the enterprise.”

Box will bring its collaboration and productivity tools to the party, while IBM brings social, analytic, infrastructure and security services.

The move is described as a strategic alliance and will see the two companies jointly market products under a co-banner.

IBM will enable the use of Box APIs in enterprise apps and web services to make a whole new playground for developers.

The deal will see Box integrate IBM’s content management, including content capture, extraction, analytics, case management and governance. Also aboard will be Watson Analytics to study in depth the content being stored in Box.

Box will also be integrated into IBM Verse and IBM Connections to allow full integration for email and social.

IBM’s security and consulting services will be part of the deal, and the companies will work together to create mobile apps for industries under the IBM MobileFirst programme.

Finally, the APIs for Box will be enabled in Bluemix meaning that anyone working on rich apps in the cloud can make Box a part of their creation.

Box seems to be the Nick Clegg to IBM’s ham-faced posh-boy robot in this relationship, but is in fact bringing more than you’d think to the party with innovations delivered by its acquisition of 3D modelling company Verold.

What’s more, the results of these collaborations should allow another major player to join Microsoft and Google in the wars over productivity platforms.

It was announced today that Red Hat and Samsung are forming their own coalition to bring enterprise mobile out of the hands of the likes of IBM and Apple which already have a cool thing going on with MobileFirst.

Source

Panasonic Appears To Be On The Hunt

Japanese electronics giant Panasonic Corp said it is gearing up to spend 1 trillion yen ($8.4 billion) on acquisitions over the next four years, bolstered by a stronger profit outlook for its automotive and housing technology businesses.

Chief Executive Kazuhiro Tsuga said at a briefing on Thursday that Panasonic doesn’t have specific acquisition targets in mind for now. But he said the firm will spend around 200 billion yen on M&A in the fiscal year that kicks off in April alone, and pledged to improve on Panasonic’s patchy track record on big deals.

“With strategic investments, if there’s an opportunity to accelerate growth, you need funds. That’s the idea behind the 1 trillion yen figure,” he said. Tsuga has spearheaded a radical restructuring at the Osaka-based company that has made it one of the strongest turnaround stories in Japan’s embattled technology sector.

Tsuga previously told Reuters that company was interested in M&A deals in the European white goods market, a sector where Panasonic has comparatively low brand recognition.

The firm said on Thursday it’s targeting operating profit of 430 billion yen in the next fiscal year, up nearly 25 percent from the 350 billion yen it expects for the year ending March 31.

Panasonic’s earnings have been bolstered by moving faster than peers like Sony Corp and Sharp Corp to overhaul business models squeezed by competition from cheaper Asian rivals and caught flat-footed in a smartphone race led by Apple Inc and Samsung Electronics. Out has gone reliance on mass consumer goods like TVs and smartphones, and in has come a focus on areas like automotive technology and energy-efficient home appliances.

Tsuga also sought to ease concerns that an expensive acquisition could set back its finances, which took years to recover from the deal agreed in 2008 to buy cross-town rival Sanyo for a sum equal to about $9 billion at the time.

Source

IBM Goes Bare Metal

IBM has announced the availability of OpenPower servers as part of the firm’s SoftLayer bare metal cloud offering.

OpenPower, a collaborative foundation run by IBM in conjunction with Google and Nvidia, offers a more open approach to IBM’s Power architecture, and a more liberal licence for the code, in return for shared wisdom from member organisations.

Working in conjunction with Tyan and Mellanox Technologies, both partners in the foundation, the bare metal servers are designed to help organisations easily and quickly extend infrastructure in a customized manner.

“The new OpenPower-based bare metal servers make it easy for users to take advantage of one of the industry’s most powerful and open server architectures,” said Sonny Fulkerson, CIO at SoftLayer.

“The offering allows SoftLayer to deliver a higher level of performance, predictability and dependability not always possible in virtualised cloud environments.”

Initially, servers will run Linux applications and will be based on the IBM Power8 architecture in the same mold as IBM Power system servers.

This will later expand to the Power ecosystem and then to independent software vendors that support Linux on Power application development, and are migrating applications from x86 to the Power architecture.

OpenPower servers are based on open source technology that extends right down to the silicon level, and can allow highly customised servers ranging from physical to cloud, or even hybrid.

Power systems are already installed in SoftLayer’s Dallas data centre, and there are plans to expand to data centres throughout the world. The system was first rolled out in 2014 as part of the Watson portfolio.

Prices will be announced when general availability arrives in the second quarter.

Source

Cisco Files Suit Against Rivals

Network equipment maker Cisco Systems Inc filed several lawsuits on Friday against Arista Networks Inc, alleging the smaller rival of copying its networking technologies.

The lawsuits, filed in a federal court in California, accuse Arista of infringing on 14 patents on networks and also on related copyrights, Cisco General Counsel Mark Chandler said in a blog post.

Arista was formed by former Cisco employees, including Chief Development Officer Andreas Bechtolsheim, Chief Technology Officer Kenneth Duda, and Chief Executive Officer Jayshree Ullal.

“Rather than building its products and services based on new technologies developed by Arista, however, and providing legitimate competition to Cisco, Arista took a shortcut by blatantly and extensively copying the innovative networking technologies designed and developed by Cisco,” one of the complaints said.

Cisco is a leader in the networking world, with revenue of $12.2 billion in the third quarter. Arista, in contrast, reported sales of $155.5 million for the period, although it is growing fast.

Arista said it had not yet been able to evaluate the lawsuits.

“While we have respect for Cisco as a fierce competitor and the dominant player in the market, we are disappointed that they have to resort to litigation rather than simply compete with us in products,” Arista said in an emailed statement.

Cisco filed the lawsuits on the same day the U.S. Supreme Court agreed to review a $64 million patent infringement verdict that Commil USA LLC won against the company.

Source

IBM And Tencent Team Up

Tencent Holdings Ltd announced that it would be teaming up with International Business Machines Corp (IBM) on a new cloud software business for corporate customers, a marked departure for one of the dominant forces in China’s consumer Internet industry.

Best known for its popular WeChat messaging app and its online games rather than business software, Tencent said its cloud unit would now target small and medium enterprises in the healthcare and “smart city” industries.

Many technology firms are jockeying for a slice of China’s enterprise software market, which promises to grow sharply in coming years as businesses modernize their IT operations and move data onto the cloud.

Tencent’s alliance with IBM, which has deep experience providing computing and consulting services to corporate clients, provides the Shenzhen company a competitive answer to its Chinese rival Alibaba Group Holding Ltd’s nascent cloud efforts.

An e-commerce giant, Alibaba has been slowly building its cloud unit, which recorded just $38 million in revenue in the three months ended June 30.

Tencent said it would tap IBM for its “industry expertise and enterprise reach” but did not disclose financial terms of the deal.

For IBM, the Tencent deal is just the latest in a recent spate of new software partnerships in China, where its hardware sales have been sliding.

IBM announced a deal earlier this year to install its cutting-edge DB2 database software on Chinese rival Inspur International Ltd’s machines. Big Blue also agreed to license its database and big data technology to Chinese software vendor Yonyou Software Co Ltd.

Source

Judge Rejects Silicon Valley Settlement

A California judge has rejected the proposed settlement in a lawsuit over no-hire agreements used by top Silicon Valley tech firms, saying the amount being offered to compensate workers is too low.

The remaining defendants in the case — Apple, Google, Intel and Adobe Systems — had reached a deal with the worker’s lawyers to settle the case for US$324.5 million, but Judge Lucy Koh of the federal district court in San Jose, California, said that amount is too low.

After subtracting the fees for the workers’ lawyers — they’re allowed to keep up to a quarter of the award, or $81 million, as well as other money — each worker would be left with an average of only $3,750.

“The Court finds the total settlement amount falls below the range of reasonableness,” Koh wrote in her order, issued Friday.

She said she was troubled that the workers would get less money than under a previous settlement with companies that settled earlier in the case, even though the case has been progressing in the workers’ favor since then.

Last year, Intuit, Lucasfilm and Pixar settled with the workers before the case came to trial.

All of the companies were accused of striking secret deals to not poach each others’ workers, a violation of the Sherman Antitrust Act that reduced the workers’ potential to earn higher wages.

An expert hired for the case has estimated that the workers’ should receive damages of $3 billion, for wages they could have earned if the no-hire agreements hadn’t been in place.

Source

BlackBerry And Amazon Team Up

BlackBerry Ltd has agreed to a licensing deal with Amazon.com Inc that will let the Canadian smartphone maker offer some 240,000 Android applications from Amazon’s app store on its lineup of BlackBerry 10 devices this fall.

The move allows the Waterloo, Ontario-based company to add a vast array of consumer-focused apps to its devices, while at the same time directing its own efforts toward developing enterprise and productivity applications.

Customers who own smartphones powered by its BlackBerry 10 operating system will now be able to access popular Android apps such as Groupon, Netflix, Pinterest, Minecraft and Candy Crush Saga on their BlackBerry devices this fall. Google Inc makes Android, the mobile operating system used in more than a billion phones and tablets.

The apps will become available after the Canadian smartphone maker rolls out the upgraded BlackBerry 10.3 operating system, the company said.

The move is the latest by the smartphone pioneer to streamline its focus as it attempts to reinvent itself under new Chief Executive Officer John Chen as BlackBerry phones have lost ground to Apple Inc’s iPhone and Samsung Electronics Co Ltd’s Galaxy devices.

Analysts saw the move as a step in the right direction, but are not sure whether it will help turn the tide for BlackBerry.

“While this will widen the BB10 app ecosystem, the consumer

smartphone environment still remains challenging,” Wells Fargo analyst Maynard Um said in a note to clients.

Um views the announcement as a positive for BlackBerry, but said “whether it stems consumer churn remains to be seen.”

Chen wants to remain a competitor in the smartphone segment, but is focused on making BlackBerry a dominant force in machine-to-machine communications. The company’s QNX software already is a mainstay in the automotive industry, powering electronic and other systems in a wide range of cars.

BlackBerry already works with hundreds of large enterprise clients, including corporations and government agencies, to manage and secure mobile devices on their internal networks.

Chen intends to build on those ties and BlackBerry’s security credentials to let these enterprise clients build and customize in-house corporate and productivity applications for their employees.

Source

Will MasterCard Sell Big Data?

MasterCard Inc, the world’s second-largest credit card association, sees business booming from selling data to retailers, banks and governments on spending patterns found in the payments it processes, a top executive told Reuters.

MasterCard, which handles payments for 2 billion cardholders and tens of millions of merchants, uses that information to generate real-time data on consumer trends, available more quickly that regular government statistics.

“It is an incredibly fast growing area for us,” Ann Cairns, who heads MasterCard’s business outside North America, said in an interview, stressing that the company respects cardholder privacy, using anonymous data rather than personal information.

MasterCard does not give figures for its information services products but “other revenues”, which include the sale of data, grew 22 percent in the first quarter of 2014 to $341 million, outpacing the growth of total revenue dominated by payments processing, which rose 14 percent to $2.177 billion.

Cairns said clients for the data include retailers, banks and governments, with MasterCard tailoring it to their needs.

“Retailers are fantastic at using the data they have available about how people shop in their store, how their inventory turns over, but what they don’t know is what happens outside their store,” she said. “The data we’ve got is ubiquitous across the whole market. We can help retailers see what they need to do to capture more sales.”

Cairns, 57, a statistician by training who joined MasterCard in 2011 after helping manage the disposal of Lehman Brothers assets in Europe, revels in the insights real-time card data can provide, such as London’s popularity as the world’s top travel destination and a rise in spending on experiences such as eating out or going on holiday rather than shopping in stores.

MasterCard has recorded a spike in spending in Brazil on groceries and a drop in spending on luxury goods as the price of food has risen ahead of the World Cup, she said, the kind of insight valued by companies such as Nike and Adidas that are hoping to sell $300 soccer boots during the competition.

While MasterCard expands in “big data”, Cairns sees no slowdown in its traditional business of processing payments, with plenty of potential for growth as 85 percent of consumer transactions are still made by cash or check.

“Moving money and doing it safely and securely is so deeply cared about by so many people around the world that it will be a business that has fantastic value now and for years to come,” said Cairns, who previously worked at Citigroup and ABN Amro.

Source

« Previous Page — Next Page »