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Oracle Takes A Fall
Oracle posted fiscal fourth-quarter results that were just horrible for investors looking for more progress in web-based services, sending its shares lower.
The company had been expected to report a pickup in its software business and progress in cloud computing, shares of Oracle had gained 10 percent over the past three months. However yesterday it was clear that Oracle is getting a kicking from the competition like Salesforce.com and Workday which have been offering competitive software and Internet-based products at prices that often undercut Oracle.
Tech spending is likely to fall as more companies move to the cloud. Oracle has been rolling out its own cloud-based products but they remain under five percent of its overall revenue. For the fiscal first quarter, Oracle expects software and cloud revenue to grow between 6 percent and 8 percent. That forecast includes expectations for software- and platform-related cloud services to grow between 25 percent and 35 percent.
Oracle said it expects its hardware system revenue to be in a range of down 1 percent to up 3 percent.
For its latest fourth quarter, Oracle said overall revenue rose 3 percent to $11.3 billion. That was less than the $11.48 billion analysts had expected on average. Net income fell 4 percent to $3.6 billion.
Revenue from Oracle’s hardware systems products grew 2 percent to $870 million.
Is China Hurting U.S. Vendors?
Shipments of servers from Chinese vendors grew at a rapid pace while the top server vendors in the U.S. declined during the first quarter of this year.
Worldwide server shipments were 2.3 million units during the first quarter, growing by just 1.4 percent compared to the same quarter last year, according to Gartner.
Growth was driven by Chinese server vendors Huawei and Inspur Electronics, which were ranked fourth and fifth, respectively, behind the declining Hewlett-Packard, Dell and IBM.
Huawei has been in the top five for server shipments for more than a year, but Inspur Electronics is a new entrant. Inspur builds blade servers, rack servers and supercomputers, and is best known for being involved in the construction of China’s Tianhe-2, which is currently the world’s fastest supercomputer, according to Top500.org.
Chinese servers partly benefitted from the 18 percent shipment growth in the Asia-Pacific region, while shipments in other regions declined, Gartner said in a statement.
Server buying trends have changed in recent years. Companies like Facebook, Google and Amazon, which buy servers by the thousands, are bypassing established server makers and purchasing hardware directly from manufacturers like Quanta and Inventec. That trend in part led to the establishment of the Open Compute Project, a Facebook-led organization that provides server reference designs so companies can design data-center hardware in-house.
Similarly, Chinese cloud providers are building mega data centers and buying servers from local vendors instead of going to the big name brands, said Patrick Moorhead, analyst with Moor Insights and Strategy.
The trend of buying locally is partly due to the security tension between the U.S. and China, but servers from Chinese companies are also cheaper, Moorhead said.
The enterprise infrastructure is also being built out in China, resulting in a big demand for servers. There is also a growing demand for servers from little-known vendors based in Asia — also known as “white box” vendors — in other regions, Moorhead said.
Cisco To Launch Smart City
June 6, 2014 by admin
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Officials from networking giant Cisco Systems and Kansas City, Mo., have signed a letter of intent to build out a new network for smart city services.
Elements of the project call for designing mobile apps for citizen access, digital interactive kiosks, smart street lights and video surveillance in an area called the city’s innovation district.
The project is designed to complement the city’s build out of a two-mile downtown streetcar path, Cisco said in a statement.
Kansas City, Mo. and its neighbor, Kansas City, Kans., are already getting plenty of outside attention from tech giant Google, which picked the area for its first deployment of Google Fiber, an initiative to install fiber optic cable there and in other cities.
Google won’t say how many households are connected to Google Fiber in the area, but it has already installed 6,000 miles of fiber optic cable. Meanwhile, cable provider Time Warner has provisioned 11,000 Wi-Fi hotspots for its Internet customers to use from mobile devices in various Kansas City area locales, including the popular eight-block restaurant and bar district on the edge of downtown called the Power & Light District.
While some citizen groups have been concerned that Google Fiber isn’t reaching enough low-income families in the area with gigabit fiber, there’s a general recognition by city officials that people of all income levels use smartphones and other wireless devices fairly widely. That can only help the Cisco initiative with Kansas City for wireless services.
Kansas City, Mo. Mayor Sly James said the initiative with Cisco promises to connect city services and information with visitors and residents “like never before.”
Third-party app developers will also have an opportunity to build unique and innovative apps for public use.
Cisco will use its Smart+Connected Communities reference architectures to evaluate the initiative and will work with the city and a business consultancy called Think Big Partners to manage a “living lab” incubator for the tech startup community.
Wim Elfrink, Cisco’s executive vice president of industry solutions, credited city leaders with leading the “charge on innovation in the Midwest.”
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.
Will IBM Realize Growth In 2015?
International Business Machines Corp said it is projecting growth in its hardware sector next year as the company invests in research and development and abandons low-performing ventures.
The comments come less than one month after the world’s largest technology service company reported its lowest quarterly revenue in five years, weighed by sluggish global demand for its hardware, which plunged 23 percent in the first quarter of 2014.
The company added that growth in Latin America, the Middle East and Africa remain strong, and blamed falling revenue in China on government reforms affecting state-owned clients, and on the country’s hardware-heavy portfolio.
“We move on and we spread ourselves out, more industries, more clients, cloud, data, et cetera, around there,” said IBM Chief Executive Ginni Rometty at an investor briefing on Wednesday.
Chief Financial Officer Martin Schroeter said to stabilize the hardware sector IBM would continue to “refresh” hardware and further invest in research and development.
“Quite frankly, we are seeing very good growth out of software, good growth out of services, but challenges in hardware,” said Schroeter. “We will stabilize that hardware base and I am comfortable we will make that happen in 2014,” he said.
He reiterated the company’s EPS target for 2015 of at least $20. He expects a shift to higher-value business to bring in $3.25 and share repurchases to add $2 in earnings per share by 2015.
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.
Oracle Updates NoSQL
Oracle has announced the availability of the latest edition of its NoSQL datatabase.
NoSQL is Oracle’s distributed key-value database. Now in it’s third version, the enhancements this time are heavily centred around security and business continuity.
Oracle NoSQL 3.0 features improvements in security with cluster-wide password based user authentication and integration with Oracle Wallet. Session level Secure Socket Layer (SSL) encryption and network port restriction are also included.
For disaster recovery and prevention, there’s automatic fail-over to metro-area secondary data centres, while secondary server zones can be used to offload read-only workloads to take the pressure off primary servers under stress.
For developers, there is added support for tabular data models that Oracle claims will simplify application design and improve integration with SQL based applications, while secondary indexing improves query performance.
“Oracle NoSQL 3.0 helps organisations fill the gap in skills, security and performance by delivering […] enterprise-class NoSQL database that empowers database developers and DBAs to easily, intuitively and securely build and deploy next generation applications,” said Oracle’s EVP of Database Server Technologies, Andrew Mendelsohn.
It’s already been a big week for the SQL community with NoSQL arriving on MariaDB for the first time, courtesy of a tie-up between SkySQL, Google and IBM on Tuesday, while yesterday Fusion-IO announced the use of Non-volatile memory (NVM) compression in MySQL to increase the capacity of SSD storage.
Both the community and enterprise versions of Oracle NoSQL Database 3.0 are available for download now from the Oracle Technology Network.
Microsoft Issues New Policies
Microsoft Corp, under fire for accessing an employee’s private Hotmail account to prove he was illegally passing computer code to a blogger, has said it will now refer all suspicious activity on its email services to law enforcement.
The decision, announced by head lawyer Brad Smith on Friday, reverses Microsoft’s initial reaction to complaints last week, when it laid out a plan to refer such cases to an unidentified former federal judge, and proceed to open a suspect email account only if that person saw evidence to justify it.
“Effective immediately, if we receive information indicating that someone is using our services to traffic in stolen intellectual or physical property from Microsoft, we will not inspect a customer’s private content ourselves,” said Smith, in a blog post on the software company’s website. “Instead, we will refer the matter to law enforcement if further action is required.”
Microsoft – which has recently cast itself as a defender of customer privacy – was harshly criticized last week by civil liberties groups after court documents made public in the prosecution of Alex Kibkalo in Seattle federal court for leaking trade secrets showed that Microsoft had accessed the defendant’s email account before taking the matter to legal authorities.
The company said last week its actions were within its legal rights under the terms of use of its email services, but has now acknowledged that its actions raised concerns about customer privacy.
The issue is poignant for Microsoft, which routinely criticizes Google Inc for serving up ads based on the content of users’ Gmail correspondence.
It has also been campaigning for more transparency in the legal process through which U.S. intelligence agencies can get access to email accounts following the revelations of former National Security Agency contractor Edward Snowden.
“While our own search was clearly within our legal rights, it seems apparent that we should apply a similar principle and rely on formal legal processes for our own investigations involving people who we suspect are stealing from us,” said Smith in his blog. “Therefore, rather than inspect the private content of customers ourselves in these instances, we should turn to law enforcement and their legal procedures.”
Virtru Goes Office 365
April 8, 2014 by admin
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Virtru has added Microsoft’s Office 365 and Outlook Desktop services to its growing list of compatible email platforms available on its encryption product.
The company, headquartered in Washington, D.C. and launched in January, is targeting people using major email providers who want stronger privacy controls for more secure communication.
The service is designed to be easy to use for end users who may not have the technical gumption to set up PGP (Pretty Good Privacy), a standard for signing and encrypting content.
Virtru is compatible with most major webmail providers, including Google’s Gmail, Yahoo’s Mail and Microsoft’s Outlook webmail, which replaced Hotmail.
Emails sent using Virtru through those services would look like gibberish, providing a greater degree of privacy. Law enforcement or other entities would not be able to read the content unless they could obtain the key.
Virtru uses a browser extension to encrypt email on a person’s computer or mobile device. The content is decrypted after recipients receive a key, which is distributed by Virtru’s centralized key management server.
Although Virtru handles key management, the company is working on a product that would allow that task to be managed on-site for users, as some administrators would be uncomfortable with another entity managing their keys.
Virtru has said it put aside funds to contest government orders such as a National Security Letter or law enforcement request that are not based on a standard of probable cause.
Cisco Goes To The Cloud
April 4, 2014 by admin
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Cisco Systems Inc will offer cloud computing services, pledging to spend $1 billion over the next two years to make a foray into a market currently dominated by the world’s biggest online retailer Amazon.com Inc, the Wall Street Journal reported.
Cisco said it will spend the amount to build data centers to help run the new service called Cisco Cloud Services, the Journal reported.
Cisco, which mainly deals in networking hardware, wants to take advantage of companies’ desire to rent computing services rather than buying and maintaining their own machines.
Enterprise hardware spending is dwindling across the globe as companies cope with shrinking budgets, slowing or uncertain economies and a fundamental migration to cloud computing, which reduces demand for equipment by outsourcing data management and computing needs.
“Everybody is realizing the cloud can be a vehicle for achieving better economics (and) lower cost,” the Journal quoted Rob Lloyd, Cisco’s president of development and sales as saying.
“It does not mean that we’re embarking on a strategy to go head-to-head with Amazon.”
Microsoft Corp last year said it was cutting prices for hosting and processing customers’ online data in an aggressive challenge to Amazon’s lead in the growing business of cloud computing.
Cisco could not be immediately reached for comment by Reuters outside regular U.S.business hours.