Office 365 Subscription Slows Signficantly 

Microsoft said that consumer subscriptions to Office 365 topped 23 million, signaling that the segment’s once quite large year-over-year growth had slowed significantly.

Is The Smartwatch Boom Really A Bust?

The bottom is dropping out of the smart watch industry as VC’s start to realise that the Apple dream is not making many people much dosh.

Samsung Boots Two-Thirds Of It’s R&D Staff

Samsung Electronics is about to decrease personnel at its Samsung Seoul R&D Campus by as many as two-thirds in order to restructure its business model and operations

Ericsson And Cisco Join Forces

Mobile equipment maker Ericsson and U.S. networking company Cisco Systems Inc announced that they have agreed to a business and technology partnership that should generate additional revenues of $1 billion for each company by 2018.

Has The iPhone Peaked in The U.S.?

Apple’s vice like grip in the US smartphone market is falling off as sales of the overpriced gadgets slump.

Research outfit Kantar Worldpanel ComTech said the 2.3 per cent drop in US sales had been covered by rises in China, Japan and Australia.

But the fact that Apple’s home ground is the US and that it has become increasingly dependent on its iPhone, this statistic does not bode well, particularly as the company depends on continual growth to maintain its share price the whole lot is starting become unstuck.

For the second quarter of 2015, iPhone sales grew by 2.1 percent from the same quarter last year across Europe’s five biggest markets, namely the UK, Germany, France, Italy and Spain. Growth was strongest in the UK at 5.5 percent and weakest in Italy at only 0.1 percent. Beyond Europe, iPhone sales surged by 9.1 per cent  in Australia, 7.3 percent in China and 2.7 percent in Japan.

It is worthwhile pointing that the European growth outside the UK, Australia and China is more indicative of a flat market rather than actual growth.

A possible reason for the fall in the US is better competition from Android where Apple’s Android rivals provided a tougher fight.

Carolina Milanesi, chief of research at Kantar Worldpanel ComTech, said in a press release. “In the U.S., as we forecasted last month, Android’s growth continued in the quarter ending June 30, with both Samsung and LG increasing their share sequentially. Forty-three percent of all Android buyers mentioned a ‘good deal on the price of the phone’ as the main purchase driver for their new device.”

“Android in the U.S. is undergoing its strongest consolidation yet, with Samsung and LG now accounting for 78 percent of all Android sales,” Milanesi added. “LG is the real success story of the quarter. Not only did it double its share of the US smartphone market once again, but it was also able, for the first time, to acquire more first-time smartphone buyers than Samsung.”

Screen size was the main driver for Android buyers across Europe, according to Dominic Sunnebo, business unit director at Kantar. Samsung and LG both sell big-screen “phablet” phones. Samsung’s Galaxy Note 4 sports a 5.7-inch screen, while LG’s G4 packs in a 5.5-inch screen.

Though the iPhone 6 Plus also uses a 5.5-inch display, iOS buyers are driven by a wider range of factors, Sunnebo said, including “phone reliability and durability, as well as the quality of the materials.”

Of course if you are member of Tame Apple Press you will forget to report the news and say the opposite and claim that the iPhone’s wonderful sales are a problem.

Source

Is The DRAM Market Gaining Traction?

DRAM market conditions will be better in the third quarter of 2015, recovering from the bad first half of the year, according to Inotera.

Inotera chairman Charles Kau said that it was unclear if DRAM prices will stop falling and rebound in the third quarter.

Inotera on May 11 signed a $508 million five-year syndicated loan agreement with a consortium of local banks in Taiwan in the hope of getting a bit of flexibility until things pick up.
The outfit was not thinking of flogging any of the family silver, but plans to start distributing dividends to shareholders in 2016, Kau noted.

In 2014, non-PC DRAM products accounted for 60 per cent of Inotera’s total revenues. The company will continue to improve its product mix in 2015, while making progress in the transition to 20nm process technology.

Kau told Digitimes that Inotera http://www.digitimes.com/news/a20150512PD219.html plans to have 80 per cent of its total production capacity to be built using a newer 20nm node by the end of 2015.

Meanwhile it is not planning any big capital expenditure, he said.

Source

Cloud Analytics Growth Rate Will Continue

It’s no secret that cloud computing and data analytics are both rapidly expanding areas within information technology. Put them together, and you get a winning combination that’s expected to grow by more than 26 percent annually over the next five years.

That’s according to market-tracking firm Research and Markets, which recently released a new report on the global cloud analytics market.

Increased adoption of data analytics is one of the major drivers in this market, Research and Markets found. More specifically, many organizations are adopting data analytics in order to better understand consumption patterns, customer acquisition and various other factors believed to increase revenue, cut costs and boost customer loyalty.

HP, IBM, Microsoft, Oracle and SAP are among the dominant vendors in this arena, the company said in a press release.

Big Data is one of the particularly significant trends in the market, Research and Markets said.

“Cloud analytics deals with the management of unorganized data, which helps organizations access important data and make timely decisions regarding their business,” the company said.

The rates of growth in this arena might actually be much higher than those suggested by the report, said analyst Ray Wang, founder of Constellation Research.

In fact, Constellation Research predicts an annual growth rate of closer to 46 percent until 2020, he said.

Early-arriving cloud companies like Salesforce “had great reporting, but they didn’t necessarily have great analytics,” Wang said.

It’s for that reason that challengers such as Actuate have popped up, he noted.

“More and more, because of the size and complication, we’re seeing analytics move to the cloud,” Wang said.

Source

Bitcoin Use Growing

Bitcoin is gaing greater acceptance at U.S. online merchants including Overstock.com and Expedia, as customers use a digital currency that just a few years ago was virtually unknown but is now showing some staying power.

Though sales paid for in bitcoin so far at vendors interviewed for this article have been a fraction of one percent, they expect that as acceptance grows, the online currency will one day be as ubiquitous as the internet.

“Bitcoin isn’t going anywhere; it’s here to stay,” said Michael Gulmann, vice president of global products at Expedia Inc. in Seattle, the largest online travel agent. “We want to be there from the beginning.” Expedia started accepting bitcoin payments for hotel bookings on July 11.

Until recently a niche alternative currency touted by a fervent group of followers, bitcoin has evolved into a software-based payment online system. Bitcoins are stored in a wallet with a unique identification number and companies like Coinbase and Blockchain can hold the currency for the user.

When buying an item from a merchant’s website, a customer simply clicks on the bitcoin option and a pop-in window appears where he can type in his wallet ID number.

Still, broad-based adoption of bitcoin is at least five years away because most consumers still prefer to use credit cards, analysts said.

“Bitcoin is a new way of making payments, but it’s not solving a problem that’s broken,” said George Peabody, payments consultant at Glenbrook Partners in Menlo Park, California. “Retail payments aren’t broken.”

There are also worries about bitcoin’s volatility: its price in U.S. dollars changes every day.

That risk is borne by the consumer and the bitcoin payment processor, such as Coinbase or Bitpay, not the retailer. The vendor doesn’t hold the bitcoin and is paid in U.S. dollars. As soon as a customer pays in bitcoin, the digital currency goes to the payment processor and the processor immediately pays the merchant, for a fee of less than 1 percent.

“We don’t have to deal with the actual holding of the bitcoin: it’s the payment processor that takes the currency risk for us,” said Bernie Han, chief operating officer at Dish Network Corp, in Englewood, Colorado. “That’s what makes it appealing for us and I guess for other merchants as well.”

Source

Insurers Eyeing Cyber Coverage

Insurers are eagerly monitoring exponential growth in the tiny cyber coverage market but their lack of experience and skills handling hackers and data breaches may keep their ambitions in check.

High profile cases of hackers seizing sensitive customer data from companies, such as U.S. retailer Target Corp or e-commerce company eBay Inc, have executives checking their insurance policies.

Increasingly, corporate risk managers are seeing insurance against cyber crime as necessary budget spending rather than just nice to have.

The insurance broking arm of Marsh & McLennan Companies estimates the U.S cyber insurance market was worth $1 billion last year in gross written premiums and could reach as much as $2 billion this year. The European market is currently a fraction of that, at around $150 million, but is growing by 50 to 100 percent annually, according to Marsh.

Those numbers represent a sliver of the overall insurance market, which is growing at a far more sluggish rate. Premiums are set to grow only 2.8 percent this year in inflation-adjusted terms, according to Munich Re, the world’s biggest reinsurer.

The European cyber coverage market could get a big boost from draft EU data protection rules in the works that would force companies to disclose breaches of customer data to them.

“Companies have become aware that the risk of being hacked is unavoidable,” said Andreas Schlayer, responsible for cyber risk insurance at Munich Re. “People are now more aware that hackers can attack and do great damage to central infrastructure, for example in the energy sector.”

Insurers, which have more experience handling risks like hurricanes and fires, are now rushing to gain expertise in cyber technology.

“It is a difficult risk to price by traditional insurance methods as there currently is not statistically significant actuarial data available,” said Robert Parisi, head of cyber products at insurance brokers Marsh.

Andrew Braunbergon, research director at U.S. cybersecurity advisory company NSS Labs, said that some energy companies have trouble persuading insurers to provide them with cyber coverage as the industry is vulnerable to hacking attacks that could trigger disasters like an explosion in a worst-case scenario.

Pricing on policies for retailers has climbed in the wake of recent high-profile breaches at Target, Neiman Marcus, and other merchants, he added.

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

Next Page »