Dell Buys Quest Software

Dell is set to buy Quest software for $2.5 billion. The move trumps the bid by Insight Venture Partners and was done on the quiet.

The No. 2 U.S. personal computer maker kept its name out of the limelight when Quest disclosed on Thursday that it had received an offer from a “strategic bidder” of $25.50 per share. Quest’s shares rose more than 9 percent to finish at $26.06 on Thursday.

Dell has been actively buying companies to expand its offerings to business and diversify away from personal computers. It told investors its focus on the hardware and software needs of corporate customers was gaining momentum. Quest could help Dell’s businesses in data management and protection and Windows server management.

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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.

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Intel To Unleash Shark Bay In 2013

Intel used a saucy word to describe the 2013 Haswell based notebook platform. It tells us that Shark Bay should reinvigorate the notebook experience. Revive would seem to be the more appropriate word in this case.

Shark Bay promises more sensors, faster resume times, Intel smart connect as well as connected stand by. All this will be present on at least some Shark Bay powered notebooks.

Intel also wants to bring more improved connected capabilities to 2013 notebooks. It promises NFC support, Thunderbolt paired up with now standard Intel Wireless display.

With more fuzz about sensors, NFC, all-day battery and thin and light approach Intel’s notebook of the future is basically a tablet with a keyboard that probably costs a bit more money and offers traditional PC functionality.

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Future PCs Will Be Constant Learners

Tomorrow’s computers will constantly improve their understanding of the data they work with, which in turn will aid them in providing users with more appropriate information, predicted the software mastermind behind IBM’s Watson system.

Computers in the future “will learn through interacting with us. They will not necessarily require us to sit down and explicitly program them, but through continuous interaction with humans they will start to understand the kind of data and the kind of computation we need,” said IBM Fellow David Ferrucci, who was IBM’s principal investigator for Watson technologies. Ferrucci spoke at the IBM Smarter Computing Executive Forum, held Wednesday in New York.

“This notion of learning through collaboration and interaction is where we think computing is going,” he said.

IBM’s Watson project was an exercise for the company in how to build machines that can better anticipate user needs.

IBM researchers spent four years developing Watson, a supercomputer designed specifically to compete in the TV quiz show “Jeopardy,” a contest that took place last year. On “Jeopardy,” contestants are asked a range of questions across a wide variety of topic areas.

Watson did win at its “Jeopardy” match. Now IBM thinks the Watson computing model can have a wide range of uses.

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IBM Goes Social

Responding to increased use of tablets within business settings, IBM will launch on Wednesday several mobile applications designed to let employees use IBM enterprise social collaboration software with iPads and other mobile devices.

The new applications, free to customers with active licenses of the IBM software, have been built specifically for tablet interfaces and have security, IT management and compliance features.

“The apps are very lightweight and talk directly back in a secure manner to the enterprise systems that people who don’t have these devices are using inside the company,” said Rob Ingram, senior manager of IBM’s Mobile Collaboration Strategy.

One of the applications lets employees use IBM Connections via iPads, while another one is for LotusLive Meeting users to participate in online meetings using iPhones or Android, BlackBerry or iPad tablets.

For IBM Sametime, another application lets employees engage in one-on-one or group instant messaging sessions on iPad and Android tablets. There is also one application for Lotus Symphony Viewer that lets users view ODF-based files, including documents, spreadsheets and presentations, on iPads, iPhones or Android devices.

There are also applications for managing telephony tasks within IBM Sametime from tablets and for Android device users to add widgets to home screens as shortcuts to their Lotus Notes mail and calendar.

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BlackBerry Falls Behind In Workplace

More workers use iPhone and Android smartphones combined than BlackBerry devices, according to a survey of 1,681 U.S.-based workers released today by Forrester Research.

That finding highlights what many have known for a while about the entrenched workplace smartphone veteran: the BlackBerry faces trouble from its competitors.

The BlackBerry, made by Research in Motion, still leads among U.S. workers, with 42%, the survey said, with Apple’s iPhone accounting for 22% and Android devices, 26%.

The survey also found that nearly half, or 48% of the group, said that they chose the primary smartphone used for their work without considering what their company supports. Only 29% said they chose the smartphone from a list of phones the company supports, while 23% said they had no choice in the matter.

Often, corporate IT shops will choose BlackBerry smartphones when requiring a worker to use a specific smartphone, partly because of the perceived security benefits, many analysts, including at Forrester, have found. The growth in Android phones and the iPhone — many of them brought to workplaces by workers independently — are forcing IT shops to rethink that decision, however.

Ted Schadler, a Forrester analyst, said the survey points to two major trends. The first is that more workers than ever are bringing consumer-focused devices, such as Android and iPhone smartphones, to use for work, and more companies are supporting those devices.

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RIM’s Woes Continue

PlayBook shipments dropped in half for Research In Motion during its second quarter, which also saw revenue continue its steep decline.

RIM shipped just 200,000 PlayBooks in the second quarter, down from 500,000 last quarter, when it started offering the tablet device.

Revenue was US$4.2 billion, hitting the low end of the company’s expectation and down 10 percent from the same quarter last year. Analysts polled by Thomson Financial expected $4.47 billion.

RIM’s net income was $329 million, or $0.63 per share. Adjusted net income was $419 million, or $0.80 per share. Analysts were expecting better: Those polled by Thomson predicted $0.87 per share.

RIM shipped 10.6 million smartphones during the second quarter. In June, RIM warned that the second quarter might be weak because of delays in shipping new phones. The delays meant RIM would miss the back-to-school sales period, negatively impacting sales, it said at the time.

Executives who spoke during a conference call to discuss the results put a positive spin on phone sales, however. The company only began launching phones running the new BlackBerry 7 software within the past few weeks, and so far it’s the “largest and most successful launch in our history,” Mike Lazaridis, co-CEO of RIM, said during the call.

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IMs To Overtake Emails In Workplace

Many CIOs predict that real-time communication technologies, such as instant messaging, SharePoint, Chatter and Yammer will outpace traditional email in the workplace in the next five years.

That’s the conclusion of a Robert Half Technology survey of more than 1,400 CIOs at U.S. companies with more than 100 employees. The survey was published last month.

More than half (54%) of the CIOs polled said real-time workplace communication tools will surpass traditional email in popularity within five years. The prediction was a bit lukewarm, however: 13% of the respondents said real-time messages will be “much more popular” than email, while 41% said they’ll be “somewhat more popular.”

Robert Half Technology, an IT staffing firm, said a transition to real-time tools could yield workplace benefits, potentially making it easier to work as a team, solve problems, share ideas and manage documents.

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EMC’s Data Breach Cost $66 Million

Between April and June 2011, EMC spent $66 million handling the fallout from a March cyber attack against its systems, which resulted in the compromise of information relating to the SecurID two-factor authentication sold by EMC’s security division, RSA.

That clean-up figure was disclosed last week during an EMC earnings call, by David Goulden, the company’s chief financial officer. It doesn’t include post-breach expenses from the first quarter, when EMC began investigating the attack, hardening its systems, and working with customers to prevent their being exploited as a result of the attacks.

In spite of the breach, EMC reported strong second-quarter financial results, earning consolidated revenue of $4.85 billion, which is an increase of 20% compared with the same period one year ago. Meanwhile, second-quarter GAAP net income increased by 28% from the same period last year, to reach $546 million. The company saw large growth in its information infrastructure and virtual infrastructure products and services, including quarterly revenue increases of 19% for its information storage group.

Those results led executives to increase their financial outlook for 2011 and predict consolidated revenue in excess of $19.8 billion, which would be a 16% increase from EMC’s 2010 revenues of $17 billion.

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Is Motorola Building Its Own Mobile OS?

Motorola Mobility has snagged a number of experienced mobile and Web engineers from Apple and Adobe and is developing a Web-based mobile operating system as a potential alternative to Google’s Android software, according to a source familiar with the matter.

Asked to comment, Motorola did not refute the existence of the project but continues to affirm its interest in Android. “Motorola Mobility is committed to Android as an operating system,” a company spokesperson stated.

Jonathan Goldberg, an analyst with Deutsche Bank in San Francisco, said that he too had heard Motorola was at work on its own operating system. “I know they’re working on it,”  “I think the company recognizes that they need to differentiate and they need options, just in case. Nobody wants to rely on a single supplier.”

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