IBM Buys Blue Box

IBM HAS ACQUIRED Blue Box in an attempt to make its cloud offering even bluer. The Seattle-based company specialises in simple service-as-a-platform clouds based on OpenStack.

This, of course, fits in with IBM’s new direction of a Power PC, OpenStack cloud-based world, as demonstrated by its collaboration with MariaDB on TurboLAMP.

IBM’s move to the cloud is starting to pay off, seeing revenue of $7.7bn in the 12 months to March 2015 and growing more than 16 percent in the first quarter of this year.

The company plans to use the new acquisition to create rapid, integrating cloud-based applications and on-premise systems within the OpenStack managed cloud.

Blue Box also brings a remotely managed OpenStack to provide customers with a local cloud, better visibility control and tighter security.

“IBM is dedicated to helping our clients migrate to the cloud in an open, secure, data rich environment that meets their current and future business needs,” said IBM general manager of cloud services Jim Comfort.

“The acquisition of Blue Box accelerates IBM’s open cloud strategy, making it easier for our clients to move data and applications across clouds and adopt hybrid cloud environments.”

Blue Box will offer customers a more cohesive, consistent and simplified experience, while at the same time integrating with existing IBM packages like the Bluemix digital innovation platform. The firm also offers a single unified control panel for customer operations.

“No brand is more respected in IT than IBM. Blue Box is building a similarly respected brand in OpenStack,” said Blue Box founder and CTO Jesse Proudman.

“Together, we will deliver the technology and products businesses need to give their application developers an agile, responsive infrastructure across public and private clouds.

“This acquisition signals the beginning of new OpenStack options delivered by IBM. Now is the time to arm customers with more efficient development, delivery and lower cost solutions than they’ve seen thus far in the market.”

IBM has confirmed that it plans to help Blue Box customers to grow their technology portfolio, while taking advantage of the broader IBM product set.

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Will A.I. Create The Next Industrial Revolution?

Artificial Intelligence will be responsible for the next industrial revolution, experts in the field have claimed, as intelligent computer systems replace certain human-operated jobs.

Four computer science experts talked about how advances in AI could lead to a “hollowing out” of middle-income jobs during a panel debate hosted by ClickSoftware about the future of technology.

“It’s really important that we take AI seriously. It will lead to the fourth industrial revolution and will change the world in ways we cannot predict now,” said AI architect and author George Zarkadakis.

His mention of the “fourth industrial revolution” refers to the computerization of the manufacturing industry.

If the first industrial revolution was the mechanisation of production using water and steam power, followed by the second which introduced mass production with the help of electric power, then the third is what we are currently experiencing: the digital revolution and the use of electronics and IT to further automate production.

The fourth industrial revolution, which is sometimes referred to as Industry 4.0, is the vision of the ‘smart factory’, where cyber-physical systems monitor physical processes, create a virtual copy of the physical world and make decentralized decisions.

These cyber-physical systems communicate and cooperate with each other and humans in real time over the Internet of Things.

Dan O’Hara, professor of cognitive computing at Goldsmiths, University of London, explained that this fourth industrial revolution will not be the same kind of “hollowing out” of jobs that we saw during the last one.

“It [won’t be] manual labour replaced by automation, but it’ll be the hollowing out of middle-income jobs, medium-skilled jobs,” he said.

“The industries that will be affected the most from a replacement with automation are construction, accounts and transport. But the biggest [industry] of all, remembering this is respective to the US, is retail and sales.”

O’Hara added that many large organisations’ biggest expense is people, who already work alongside intelligent computer systems, and this area is most likely to be affected as companies look to reduce costs.

“Anything that’s working on an AI-based system is bound to be very vulnerable to the replacement by AI as it’s easily automated already,” he said.

However, while AI developments in the retail space could lead to the replacement of jobs, it is also rather promising at the same time.

Mark Bishop, professor of cognitive computing at Goldsmiths, highlighted that AI could save businesses money if it becomes smart enough to determine price variants in company spending, for example, scanning through years of an organisation’s invoice database and detecting the cheapest costs and thus saving on outgoings.

While some worry that AI will take over jobs, others have said that they will replace humans altogether.

John Lewis IT chief Paul Coby said earlier this year that the blending of AI and the IoT in the future could signal the end of civilisation as we know it.

Coby explained that the possibilities are already with us in terms of AI and that we ought to think about how “playing with the demons” could be detrimental to our future.

Apple co-founder Steve Wozniak added to previous comments from Stephen Hawking and Elon Musk with claims that “computers are going to take over from humans”.

Woz made his feelings on AI known during an interview with the Australian Financial Review, and agreed with Hawking and Musk that its potential to surpass humans is worrying.

“Computers are going to take over from humans, no question. Like people including Stephen Hawking and Elon Musk have predicted, I agree that the future is scary and very bad for people,” he said.

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USAA Exploring Bitcoins

USAA, a San Antonio, Texas-based financial institution serving current and former members of the military, is researching the underlying technology behind the digital currency bitcoin to help make its operations more efficient, a company executive said.

Alex Marquez, managing director of corporate development at USAA, said in an interview that the company and its banking, insurance, and investment management subsidiaries hoped the “blockchain” technology could help decentralize its operations such as the back office.

He said USAA had a large team researching the potential of the blockchain, an open ledger of a digital currency’s transactions, viewed as bitcoin’s main technological innovation. It lets users make payments anonymously, instantly, and without government regulation.

The blockchain ledger is accessible to all users of bitcoin, a virtual currency created through a computer “mining” process that uses millions of calculations. Bitcoin has no ties to a central bank and is viewed as an alternative to paying for goods and services with credit cards.

“We have serious interest in the blockchain and we think the technology would have an impact on the organization,” said Marquez. “The fact that we have such a large group of people working on this shows how serious we are about the potential of this technology.”

USAA, which provides banking, insurance and other products to 10.7 million current or former members of the military, owns and manages assets of about $213 billion.

Marquez said USAA had no plans to dabble in the bitcoin as a currency. Its foray into the blockchain reflects a trend among banking institutions trying to integrate bitcoin technology into their systems. BNY Mellon and UBS have announced initiatives to explore the blockchain technology.

Most large banks are testing the blockchain internally, said David Johnston, managing director at Dapps Venture Fund in San Antonio, Texas. “All of the banks are going through that process of trying to understand how this technology is going to evolve.”

“I would say that by the end of the year, most will have solidified a blockchain technology strategy, how the bank is going to implement and how it will move the technology forward.”

USAA is still in early stages of its research and has yet to identify how it will implement the technology.

In January this year, USAA invested in Coinbase, the biggest bitcoin company, which runs a host of services, including an exchange and a wallet, which is how bitcoins are stored by users online.

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USB 3.1 Coming Later This Year

The emerging USB 3.1 standard is on track to reach desktops as hardware companies release motherboards with ports that can transfer data twice as fast as the previous USB technology.

MSI recently announced a 970A SLI Krait motherboard that will support the AMD processors and the USB 3.1 protocol. Motherboards with USB 3.1 ports have also been released by Gigabyte, ASRock and Asus, but those boards support Intel chips.

USB 3.1 can shuffle data between a host device and peripheral at 10Gbps, which is two times faster than USB 3.0. USB 3.1 is also generating excitement for the reversible Type-C cable, which is the same on both ends so users don’t have to worry about plug orientation.

The motherboards with USB 3.1 technology are targeted at high-end desktops. Some enthusiasts like gamers seek the latest and greatest technologies and build desktops with motherboards sold by MSI, Asus and Gigabyte. Many of the new desktop motherboards announced have the Type-C port interface, which is also in recently announced laptops from Apple and Google.

New technologies like USB 3.1 usually first appear in high-end laptops and desktops, then make their way down to low-priced PCs, said Dean McCarron, principal analyst of Mercury Research.

PC makers are expected to start putting USB 3.1 ports in more laptops and desktops starting later this year.

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SUSE Brings Hadoop To IBM z Mainframes

SUSE and Apache Hadoop vendor Veristorm are teaming up to bring Hadoop to IBM z and IBM Power systems.

The result will mean that regardless of system architecture, users will be able to run Apache Hadoop within a Linux container on their existing hardware, meaning that more users than ever will be able to process big data into meaningful information to inform their business decisions.

SUSE’s Veristorm Data Hub and vStorm Enterprise Hadoop will now be available as zDoop, the first mainframe-compatible Hadoop iteration, running on SUSE Linux Enterprise Server for System z, either on IBM Power12 or Power8 machines in little-endian mode, which makes it significantly easier for x86 based software to be ported to the IBM platform.

SUSE and Veristorm have also committed to work together on educating partners and channels on the benefits of the overall package.

Naji Almahmoud, head of global business development for SUSE, said: “The growing need for big data processing to make informed business decisions is becoming increasingly unavoidable.

“However, existing solutions often struggle to handle the processing load, which in turn leads to more servers and difficult-to-manage sprawl. This partnership with Veristorm allows enterprises to efficiently analyse their mainframe data using Hadoop.”

Veristorm launched Hadoop for Linux in April of last year, explaining that it “will help clients to avoid staging and offloading of mainframe data to maintain existing security and governance controls”.

Sanjay Mazumder, CEO of Veristorm, said that the partnership will help customers “maximize their processing ability and leverage their richest data sources” and deploy “successful, pragmatic projects”.

SUSE has been particularly active of late, announcing last month that its software-defined Enterprise Storage product, built around the open source Ceph framework, was to become available as a standalone product for the first time.

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Target Settles Security Breach

Target is reportedly close to paying out $10m to settle a class-action case that was filed after it was hacked and stripped of tens of millions of peoples’ details.

Target was smacked by hackers in 2013 in a massive cyber-thwack on its stores and servers that put some 70 million people’s personal information in harm’s way.

The hack has had massive repercussions. People are losing faith in industry and its ability to store their personal data, and the Target incident is a very good example of why people are right to worry.

As well as tarnishing Target’s reputation, the attack also led to a $162m gap in its financial spreadsheets.

The firm apologized to its punters when it revealed the hack, and chairman, CEO and president Gregg Steinhafel said he was sorry that they have had to “endure” such a thing

Now, according to reports, Target is willing to fork out another $10m to put things right, offering the money as a proposed settlement in one of several class-action lawsuits the company is facing. If accepted, the settlement could see affected parties awarded some $10,000 for their troubles.

We have asked Target to either confirm or comment on this, and are waiting for a response. For now we have an official statement at Reuters to turn to. There we see Target spokeswoman Molly Snyder confirming that something is happening but not mentioning the 10 and six zeroes.

“We are pleased to see the process moving forward and look forward to its resolution,” she said.

Not available to comment, not that we asked, will be the firm’s CIO at the time of the hack. Thirty-year Target veteran Beth Jacob left her role in the aftermath of the attack, and a replacement was immediately sought.

“To ensure that Target is well positioned following the data breach we suffered last year, we are undertaking an overhaul of our information security and compliance structure and practices at Target,” said Steinhafel then.

“As a first step in this effort, Target will be conducting an external search for an interim CIO who can help guide Target through this transformation.”

“Transformational change” pro Bob DeRodes took on the role in May last year and immediately began saying the right things.

“I look forward to helping shape information technology and data security at Target in the days and months ahead,” he said.

“It is clear to me that Target is an organization that is committed to doing whatever it takes to do right by their guests.”

We would ask Steinhafel for his verdict on DeRodes so far and the $10m settlement, but would you believe it, he’s not at Target anymore either having left in the summer last year with a reported $61m golden parachute.

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IBM Debuts New Mainframe

IBM has started shipping its all-new first z13 mainframe computer.

IBM has high hopes the upgraded model will generate solid sales based not only on usual customer patterns but its design focus aimed at helping them cope with expanding mobile usage, analysis of data, upgrading security and doing more “cloud” remote computing.

Mainframes are still a major part of the Systems and Technology Group at IBM, which overall contributed 10.8 percent of IBM’s total 2014 revenues of $92.8 billion. But the z Systems and their predecessors also generate revenue from software, leasing and maintenance and thus have a greater financial impact on IBM’s overall picture.

The new mainframe’s claim to fame is to use simultaneous multi-threading (SMT) to execute two instruction streams (or threads) on a processor core which delivers more throughput for Linux on z Systems and IBM z Integrated Information Processor (zIIP) eligible workloads.

There is also a single Instruction Multiple Data (SIMD), a vector processing model providing instruction level parallelism, to speed workloads such as analytics and mathematical modeling. All this means COBOL 5.2 and PL/I 4.5 exploit SIMD and improved floating point enhancements to deliver improved performance over and above that provided by the faster processor.

Its on chip cryptographic and compression coprocessors receive a performance boost improving both general processors and Integrated Facility for Linux (IFL) cryptographic performance and allowing compression of more data, helping tosave disk space and reducing data transfer time.

There is also a redesigned cache architecture, using eDRAM technology to provide twice as much second level cache and substantially more third and fourth level caches compared to the zEC12. Bigger and faster caches help to avoid untimely swaps and memory waits while maximisng the throughput of concurrent workload Tom McPherson, vice president of z System development, said that the new model was not just about microprocessors, though this model has many eight-core chips in it. Since everything has to be cooled by a combination of water and air, semiconductor scaling is slowing down, so “you have to get the value by optimizing.

The first real numbers on how the z13 is selling won’t be public until comments are made in IBM’s first-quarter report, due out in mid-April, when a little more than three weeks’ worth of billings will flow into it.

The company’s fiscal fortunes have sagged, with mixed reviews from both analysts and the blogosphere. Much of that revolves around IBM’s lag in cloud services. IBM is positioning the mainframe as a prime cloud server, one of the systems that is actually what cloud computing goes to and runs on.

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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.

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Will Apple Go All-In On Car Batteries?

A year and a half ago, Apple Inc applied for eight patents related to car batteries. Recently, it has added a slew of engineers, just one of whom had already filed for 17 in his former career, according to a Thomson Reuters.

The recent spate of hires and patent filings shows that Apple is fast building its industrial lithium-ion battery capabilities, adding to evidence the iPhone maker may be developing a car.

Quiet, clean electric cars are viewed in Silicon Valley and elsewhere as a promising technology for the future, but high costs and “range anxiety”, the concern that batteries will run out of power and cannot be recharged quickly, remain obstacles. Those challenges could also be seen as opportunities to find solutions to take the technology mainstream.

The number of auto-related patents filed by Apple, Google Inc, Korea’s Samsung, electric carmaker Tesla Motors Inc and ride-sharing startup Uber tripled from 2011 to 2014, according to an analysis by Thomson Reuters IP & Science of public patent filings.

Apple has filed far fewer of these patents than rivals, perhaps adding impetus to its recent hiring binge as it seeks to get up to speed in battery technologies and other car-building related expertise.

As of 18 months ago, Apple had filed for 290 such patents. By contrast, Samsung, which has been providing electric vehicle batteries for some years, had close to 900 filings involving auto battery technology alone.

The U.S. government makes patent applications public only after 18 months, so the figures do not reflect any patents filed in 2014.

Earlier this month, battery maker A123 Systems sued Apple for poaching five top engineers. A search of LinkedIn profiles indicates Apple has hired at least another seven A123 employees and at least 18 employees from Tesla since 2012.

The former A123 employees have expertise primarily in battery cell design, materials development and manufacturing engineering, according to the LinkedIn profiles and an analysis of patent applications.

A123, which filed for bankruptcy in 2012 but has since reorganized, supplied batteries for Fisker Automotive’s now-discontinued hybrid electric car.

“Looking at the people Apple is hiring from A123 and their backgrounds, it is hard not to assume they’re working on an electric car,” said Tom Gage, Chief Executive of EV Grid and a longtime expert in batteries and battery technology.

Apple is building its own battery division, according to the A123 lawsuit. Apple did not immediately respond to a request for comment.

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ARM Buys Offspark For IoT

ARM has snaffled up Dutch Internet of Things (IoT) company Offspark.

The move is designed to improve ARM’s security credentials for IoT offerings.

Offspark is the creator of PolarSSL, a widely used protocol for IoT security products, and ARM hopes that the combined companies can offer a one-stop shop for IoT developers.

Krisztian Flautner, ARM’s IoT manager, said: “PolarSSL technology is already deployed by the leading IoT players.

“The fact that those same companies also use ARM Cortex processor and software technologies means we are now able to provide a complete bedrock solution for the industry to innovate from.”

The product will be renamed ARM Mbed TLS, but will remain open source, reports Tech Week Europe.

Paul Bakker, CEO of Offspark, added: “Security is the most fundamental aspect in ensuring people trust IoT technology and that is only possible with a truly tailored solution.

“Together, ARM and Offspark can provide security to the edge of any system and we look forward to working with our partners to help them deliver some exciting new projects.”

Developers will be able to license the technology for commercial use as well as embedding it into future ARM products.

Last week the company released the ARM Cortex-A72 processor, a 64-bit effort offering support for Android 5.x Lollipop and incorporating the big.LITTLE architecture that prioritises jobs to different processor cores based on their computational requirements.

A message on the Offspark website indicates that it has been taken down and redirects to ARM.

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