HTC To Make the Next Google Nexus Tablet

Google Inc has chosen HTC Corp to develop and deliver its upcoming 9-inch Nexus tablet, the Wall Street Journal reported, citing people familiar with the matter.

Google had been mulling HTC as a potential Nexus tablet partner since last year and HTC engineers have been flying to the Googleplex in Mountain View in recent months to work on the project, the report said.

Google’s decision to pick HTC reflects its long-term strategy of building a broad base of partners from device to device to prevent any one manufacturer from gaining a monopoly, the report said.

That may also be one of the reasons why Google chose HTC over bigger rivals Samsung Electronics Co Ltd, maker of the Nexus 10 tablet.

Google and HTC declined to comment on the report.

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Cheaper Windows Phones Forthcoming

Lower priced smartphones running Microsoft’s Windows Phone operating system are on the way, according to Microsoft.

Speaking at the Computex trade show in Taipei, Microsoft’s Nick Parker, who handles the company’s partnerships with device makers, said the new handsets could be out by the end of the year.

Compared to current models, which are in the “fours, fives and sixes,” he said referring to prices between $400 and $699, the new phones would have price points in the “ones, twos and threes.”

Asked to clarify if he was referring to end-market prices without carrier subsidies, Parker said he was.

He didn’t identify the manufacturers that would be bringing the phones to market, but there’s a good chance they are among nine companies Microsoft signed up to its Windows Phone development program earlier this year.

In addition to existing partners Nokia, Samsung, HTC and Huawei, Microsoft added Foxconn, Gionee, Lava (Xolo), Lenovo, LG, Longcheer, JSR, Karbonn and ZTE.

Some of the new partners have significant market share in developing countries where phones generally have lower prices than in developed markets.

Microsoft launched the latest version of its Windows Phone operating system, Windows Phone 8, in late 2012 to critical praise. The operating system was slow to catch on with consumers though, perhaps due to the absence of several popular apps on the platform, but has been slowly increasing its market share.

Windows Phone had a 3 percent share of the smartphone market in the fourth quarter of 2013, up from 2.6 percent in the last three months of 2012, according to IDC. In contrast, Google’s Android dominated the smartphone market at the end of 2013 with a 78.1 percent share. Apple’s iOS was in second place at 17.6 percent.

IDC forecasts Windows Phone will continue to increase its market share to hit 7 percent in 2018.

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Is IBM Going After HP?

IBM has announced a unified branding for its commerce cloud based enterprise products and services with a presentation at the Smarter Commerce Global Summit in Tampa, Florida.

Hot on the heels of HP, which unified its cloud offerings under the Helion brand last week, IBM Experienceone is designed to allow companies to improve engagement with their customers by leveraging big data through the cloud.

Deployment comes from a unified offer of consulting services, software and infrastructure from IBM subsidary Softlayer, which can be used to gather data, mine analytics and improve customer commerce via a mixture of traditional and cloud services.

IBM has already committed 1,000 new employees for its IBM Interactive Experience who will staff 10 “IBM Interactive Experience Labs” that are being set up to help customers understand the rules of engagement and hopefully increase their level of customer engagement.

IBM GM of Industry Cloud Solution Craig Hayman said, “IBM Experienceone provides a secure and simplified portfolio – including innovation from more than 1,200 partners – to help clients design and deliver more valuable customer engagements. With cloud, on premise and hybrid options, IBM Experienceone quickly scales to engage every customer in the moment while protecting their privacy.”

The IBM Experienceone brand is a coming together of many acquisitions that IBM has made in the field over recent years, including Sterling Commerce, Tealeaf, Coremetrics, Unica, Demandtec, Xtify and Silverpop. The only obvious omission from the top to tail offer is a specific CRM database, however IBM Experienceone is compatible with most of the leading solutions, including those of its arch rivals. This leads to the question, could a CRM be next on the company’s shopping list?

As well as on desktop and server equipment, Experienceone analytics will also be available through apps for iOS and Android.

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IBM Goes BlueMix

IBM has put together a vast array of hosted cloud services, and now it has a single location to offer them for sale.

At IBM Cloud online marketplace, that went live on Monday, enterprises can find the full range of IBM’s offerings behind a single gateway.

“So many of our customers want to build new cloud-based, front-end systems, but they want to tie them into their back-end infrastructure. We’re delivering a whole set of integration components and control services to do the connection, and monitor and control what is taking place,” said Steve Mills, IBM senior vice president and group executive for software and systems.

The marketplace has more than 100 hosted IBM applications, as well as middleware components from IBM’s Bluemix platform as a service (PaaS). It also serves as a portal to IBM’s SoftLayer infrastructure as a service (IaaS) and houses a collection of services from IBM partners.

“It’s an open platform. It supports all the popular application development tools and structures. So it’s not uniquely IBM. There’s a lot of open source and partners,” Mills said. In addition to IBM’s own offerings, other services will be offered on the site by SendGrid, Zend, Redis Labs and other IBM partners.

IBM is banking heavily on the cloud. The company’s revenue has been declining lately, due in part to sagging hardware sales. The cloud is likely to be a good place to look for more money: Gartner expects 80 percent of organizations to use cloud services in some form by the end of 2014.

Although IBM got a late start in the cloud, at least compared with rivals Amazon and Microsoft, it’s aggressively repositioning itself as a one-stop cloud services company. It generated $4.4 billion in cloud-related revenue in 2013 and has made a number of additional investments in the area as well.

In January, the company announced it would invest $1.2 billion into expanding its SoftLayer cloud service, which it acquired last year for $2 billion.

It is also investing $1 billion in the effort to adapt its middleware software as cloud services, part of the Bluemix offering.

The new online marketplace ties together a number of these initiatives from IBM within a single portal. It can be accessed from desktops, laptops, tablets and smartphones, and it can customize the service offerings based on the user’s needs.

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Samsung Joins OpenPower

Samsung has joined Google, Mellanox, Nvidia and other tech companies as part of IBM’s OpenPower Consortium. The OpenPower Consortium is working toward giving developers access to an expanded and open set of server technologies to improve data centre hardware using chip designs based on the IBM Power architecture.

Last summer, IBM announced the formation of the consortium, following its decision to license the Power architecture. The OpenPower Foundation, the actual entity behind the consortium, opened up the Power architecture technology, including specs, firmware and software under a license. Firmware is offered as open source. Originally, OpenPower was the brand of a range of System p servers from IBM that utilized the Power5 CPU. Samsung’s products currently utilize both x86 and ARM-based processors.

The intention of the consortium is to develop advanced servers, networking, storage and GPU-acceleration technology for new products. The four priority technical areas for development are system software, application software, open server development platform and hardware architecture. Along with its announcement of Samsung’s membership, the organization said that Gordon MacKean, Google’s engineering director of the platforms group, will now become chairman of the group. Nvidia has said it will use its graphics processors on Power-based hardware, and Tyan will be releasing a Power-based server, the first one outside IBM.

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Will Microsoft Buy A Slice of Dell?

Microsoft Corp is in talks to invest between $1 billion and $3 billion of financing in a buyout of Dell Inc, CNBC cited unidentified sources as saying on Tuesday.

Private equity outfit Silver Lake Partners is working to finalize a bidding group to take the world’s No. 3 PC maker private, and has started discussions with potential equity partners, sources familiar with the matter have said.

Dell also has formed a special committee to take a close look at any potential deal on the table, multiple sources with knowledge of the matter told Reuters. If successful, it would be one of the largest corporate buyouts since before the global financial crisis.

Microsoft, which accelerated its foray into computer hardware in 2012 with the launch of the Surface tablet, will provide the capital in the form of mezzanine financing according to CNBC, which is a hybrid of debt and equity.

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Will HP Be Broken Up?

HP has been urged by investment bank UBS to break itself up in order to boost its share price.

After years of mismanagement, HP’s stock price is far lower than it was during the heady dotcom bubble days when it pulled off one of the biggest mergers in recent years by buying Compaq. Now the firm’s stock price languishes around the $14 mark, a figure that could top $20 if HP were to break itself up, according to UBS.

UBS analysts including Steven Milunovich reported the firm could “realise greater value” by splitting itself up. The analysts added that each separate division of HP is big enough to stand on its own, claiming, “HP’s units are not minnows but rather they are whales packed into the same pond.”

HP spokesman Michael Thacker claimed the firm’s customers want a big HP, effectively allowing them to have one supplier for their IT needs, a message the firm has been playing up for a number of years now. Thacker said, “No matter how you look at it we are confident that HP is stronger together than apart. The company’s operations across business units are deeply integrated and our customers have told us that they want One HP.”

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Google Had Developed Own Currency

Google once contemplated the idea of issuing its own currency, to be called Google Bucks, company Executive Chairman Eric Schmidt said on stage at the Mobile World Congress in Barcelona,Spain on Tuesday.

At the end of his keynote speech, Schmidt hit on a wide array of topics in response to audience questions. “We’ve had various proposals to have our own currency we were going to call Google Bucks,” Schmidt said.

The idea was to implement a “peer-to-peer money” system. However, Google discovered that the concept is illegal in most areas, he said. Governments are typically wary of the potential for money laundering with such proposals.

“Ultimately we decided we didn’t want to get into that because of these issues,” Schmidt said.

He also hinted that Google might be preparing for a battle in China once its acquisition of Motorola is complete.

“Google’s been willing to take on China pretty well,” he said in response to a question about whether Google expected to continue to ignore theft of Motorola intellectual property in China, as Motorola has been doing. The acquisition hasn’t closed yet, Schmidt noted. “We’ve taken a pretty strong position on IP. We are well aware of the issues and we are considering your question,” he said.

Google is still waiting for some government approvals of its proposed acquisition of Motorola.

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Is Apple Taking Work Conditions Seriously?

Apple “takes working conditions very seriously”, the firm’s CEO Tim Cook said at a conference yesterday.

Cook was speaking at a Goldman Sachs technology conference, according to Mac Rumours. He said the company is committed to making sure working conditions are up to standard, and that Apple’s top priority will be to eliminate underage workers. He added, “If we find a supplier that intentionally hires underage labor, it’s a firing offence.”

Cook said, “Apple takes working conditions very seriously, and we have for a very long time. Whether workers are in Europe or Asia or the United States, we care about every worker.”

He added, “I’ve spent a lot of time in factories, personally. Not just as an executive. I worked at a paper mill in Alabama and an aluminium plant in Virginia. Many of our top executives visit factories on a regular basis. We have hundreds of employees based there full time.

“We are very connected to the process and we understand working conditions at a very granular level. I realize that the supply chain is complex and I’m sure that you realise this.

“The issues around it are complex. Our commitment is simple: every worker has the right to a fair and safe work environment, free of discrimination, where they can earn competitive wages and they can voice their concerns freely. Apple’s suppliers must live up to this to do business with Apple.

“No one in our industry is doing more to improve working conditions than Apple. We believe transparency is so very important in this area.”

Yesterday, Apple asked the Fair Labor Association (FLA) to conduct audits at Foxconn’s factories in China. In a statement, Apple said that factories in Shenzhen and Chengdu will be audited at its request. Audits have already begun.

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Does Yahoo Have a Buyer?

Blackstone Group and Bain Capital are putting together a bid for all of Yahoo Inc with Asian partners in a deal that could value the Internet company at about $25 billion, a source familiar with the discussions said on Wednesday.

The potential bid by the group, which would include China’s Alibaba Group and Japan’s Softbank Corp, has not yet been finalized, the source and two other people familiar with the matter said.

Chinese e-commerce giant Alibaba, whose primary interest is in buying back a 40 percent stake owned by Yahoo, is keeping its options open and said it has not decided whether to participate in a bid for all of Yahoo.

“Alibaba Group has not made a decision to be part of a whole company bid for Yahoo,” Alibaba Group spokesman, John Spelich, said in an emailed statement on Wednesday.

Yahoo’s shares, which closed at $15.71 on the New York Stock Exchange on Wednesday, gained 6.4 percent to $16.72 in after-hours trading, valuing the company at more than $20 billion.

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