Oracle And SAP Settle Piracy Dispute

Oracle has won a limited victory in its long-running lawsuit with rival SAP.

The action was taken in reference to events dating back to 2007, which saw employees of SAP’s TomorrowNow unit accused of illegally downloading Oracle software.

German company TomorrowNow was bought by SAP as a means to undercut Oracle’s internal tech support rates, with the ambition of getting customers to migrate to SAP solutions, reports Reuters.

In 2006, TomorrowNow started the process of undermining its parent’s position, offering cut-price support to users of the Siebel database and CRM.

Oracle was originally awarded $1.3bn back in 2010, but this was adjusted downwards on multiple appeals.

SAP acknowledged that its employees had been in the wrong, but disputed the damages awarded. SAP offered a $306m payment in 2012, but did so more in hope than expectation given its admissions.

Earlier in the year, a federal judge gave Oracle the option to settle for $356.7m or force a retrial, and the company has now decided on the former with a further $2.5m in interest.

“We are thrilled about this landmark recovery and extremely gratified that our efforts to protect innovation and our shareholders’ interests are duly rewarded,” said Oracle’s general counsel Dorian Daley.

“This sends a strong message to those who would prefer to cheat than compete fairly and legally.”

SAP agreed: “We are also pleased that, overall, the courts hearing this case ultimately accepted SAP’s arguments to limit Oracle’s excessive damages claims and that Oracle has finally chosen to end this matter.”

SAP announced a partnership with IBM last month to bring its HANA service to enterprise cloud users.

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Is RadioShack Going Bankrupt?

Troubled electronics retailer RadioShack Corp says filing for bankruptcy protection is an option if its cash situation worsens, after reporting its tenth straight quarterly loss.

The company said it was also exploring other options, including a sale or an investment, and liquidation as the last resort.

RadioShack, whose sales have been in free-fall since 2010 as it struggles to compete with internet retailers, said in a regulatory filing it was working with its lenders and landlords to restructure its debt and cut costs.

“It would surprise me if we got to Nov. 1 without a bankruptcy,” Wedbush Securities Inc analyst Michael Pachter told Reuters.

RadioShack shares, which are in danger of being delisted from the New York Stock Exchange, were up 2 percent at 95 cents in volatile early trading.

The company said same-store sales declined 20 percent in the latest quarter, while total sales plunged to their lowest in more than 20 years.

The company is being advised by a restructuring attorney at law firm Jones Day as it tries to strike a deal with creditors to close stores, two people close to the matter told Reuters on Wednesday.

RadioShack tried to close 1,100 stores this year, but reduced that number to 200 a year when lenders did not agree to the plans.

RadioShack’s landlords, however, may be open to mass store closures if they believe it will allow them to find new tenants more quickly than in a bankruptcy, a source close to the matter told Reuters.

David Tawil, president of hedge fund Maglan Capital that focuses on companies approaching bankruptcy, said he saw “major execution risks” to RadioShack’s recapitalization and turnaround efforts.

“I don’t think that the chances are great that RadioShack survives,” Tawil said, adding that the company’s credit default swaps were trading higher, pointing to market expectations of a near-term debt default.

The company ended the second quarter with $30.5 million in cash and $658.0 million in debt, which matures between 2018 and 2019.

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Intel And Oracle Team Up Again

Oracle has added systems to its enterprise-class x86 server line featuring elastic computing capabilities that dynamically adapt their configurations in response to workloads.

The Oracle Sun Server X4-4 and Sun Server X4-8 are four-socket and eight-socket systems designed for data centre workloads such as virtualisation, Oracle databases and scale-up enterprise applications.

However, the two servers are fitted with a unique variant of Intel’s Xeon E7 v2 processor family that combines the capabilities of three different Xeon processors into one.

Oracle said it worked with Intel to create this chip, the Xeon E7-8895 v2, which can dynamically switch its core count, clock frequency and power consumption without the need for a system level reboot.

This chip is the heart of the elastic computing capability of the Sun Server X4-4 and Sun Server X4-8, enabling them to adapt to the requirements of different workloads based on its runtime configuration.

It might be configured for transaction processing at a high clock speed for one hour, then switched to higher core counts for the next hour for higher throughput computing, according to Oracle.

“Through close collaboration with Intel, we are the first to announce servers based on the new Xeon E7-8895 v2 processors and the first with unique capabilities that allow customers to dynamically address different workloads in real time,” said Ali Alasti, senior vice president for hardware development at Oracle.

Enhancements have also been made to the system firmware and to Oracle’s Solaris, and Oracle Linux operating systems to support the elastic computing features.

Oracle also said the new systems have a modular design that allows the processors to be upgraded to future Xeon chips, while all the disks are hot-swappable, plus there is hot-pluggable I/O support for industry-standard low-profile PCI Express cards via a dual PCIe card carrier.

The servers also feature a “glueless” architecture that removes the need for a node controller. As node controllers typically change from one processor generation to the next because of modifications to inter-processor communication and coherency protocols, the elimination enables Oracle to offer a future-proof chassis that will support future processor releases from Intel, the firm said.

The Sun Server X4-8 is touted by Oracle as ideal for running its Oracle Database, which has just been updated with an in-memory processing option. It supports 120 processor cores with up to 6TB of memory in its 5U rack-mount chassis, plus up to 9.6TB of hard drive or 3.2TB of solid state drive (SSD) storage.

Meanwhile, the Sun Server X4-4 is said to be well suited for applications requiring large memory footprint virtual machines and running real-time analytics software.

It can be configured with two or four of the Xeon E7-8895 v2 processors, with up to 3TB of memory and 4.8TB of PCIe flash plus 2.4TB of SSDs or 7.2TB of hard drives.

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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.

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Will Sprint Acquisition Efforts Succeed

Sprint Corp is meeting with banks to devise a funding plan for its bid for smaller rival T-Mobile US Inc, a source familiar with the situation said, as the mobile carrier works to ease regulatory concerns that the deal would hurt competition.

The source said that Sprint, which is owned by Japan’s SoftBank Corp, is looking to fund the bulk of T-Mobile’s estimated $50 billion price tag with corporate bonds and cover the rest with syndicated loans and convertible bonds.

Sprint is currently having discussions with at least five banks, the source told Reuters, including JP Morgan, Goldman Sachs and Deutsche Bank.

Bloomberg, which first reported that Sprint was in talks with banks on Thursday morning in Asia, said the carrier was also talking to Mizuho Financial Group Ltd and Citibank. Softbank is expected to make a formal offer in June or July, Bloomberg added.

Sprint spokeswoman Roni Singleton told Reuters the company does not comment on rumors and speculation. T-Mobile and SoftBank both declined to comment on the Bloomberg report.

Sprint is facing a battle ahead with U.S. regulators who oppose consolidation in the wireless market on the basis it would inhibit competition. The company is aware it may have to give up some of its spectrum holdings to win over critics, the source said.

Two of the most vocal opponents to the deal are Federal Communications Commission Chairman Tom Wheeler and U.S. antitrust chief William Baer, who have pointed to T-Mobile’s success since U.S. authorities rejected a 2011 merger between AT&T Inc and T-Mobile on the grounds the market needs at least four major players to be competitive.

The failure of that deal cost AT&T a $6 billion break-up fee, a penalty Sprint feels confident it can avoid, the source said, adding that it is leaning towards having Deutsche Telekom, which currently owns 67 percent of T-Mobile, retain part of that stake.

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Juniper Boots Employees

Juniper Networks plans to reduce its global workforce by six percent and focus on its high-growth businesses. Juniper said most of the cuts would impact middle management positions and that it expected to incur cash charges of about $35 million in the first quarter, related to severance and other expenses. The company had 9,483 full-time employees as of December 31.

Juniper also said it would stop development of the application delivery controller technology, which helps remove excess load from servers, resulting in a non-cash intangible asset impairment charge of about $85 million. The company said it plans to consolidate its facilities, flog off of about 300,000 square feet of leased facilities.

Juniper added that it expected to record other non-cash asset write-downs of about $10 million in the first quarter and that it expects to carry out more restructuring in the second quarter.

Hedge fund Elliott recently claimed that Juniper shares were “undervalued” and could be worth $35-$40 if Juniper focused on revamping its core business of making routers and switches for mobile carriers such as Verizon and AT&T. Shares of Juniper are currently worth at $26.35.

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SkySQL Joins IBM On SQL Merger

SkySQL has announced a line of MariaDB products that combine NoSQL and SQL technology, offering users the ability to handle large unstructured data sets alongside traditional database features to ensure data consistency.

Available immediately, MariaDB Enterprise 2 and MariaDB Enterprise Cluster 2 are based on the code used in the firm’s MariaDB 10 database server, which it also released today.

According to SkySQL, the availability of an enterprise grade SQL database system with NoSQL interoperability will be a game changer for developers building revenue generating applications and database administrators in charge of large, complex environments.

The two new products have been developed with support from other partners in the open source community, including Red Hat, IBM and Google, according to the firm, and are aimed at giving IT managers more options for managing large volumes of data.

In fact, Red Hat will use MariaDB Enterprise 2 as the default database for its enterprise customers, while Google has also moved large parts of its infrastructure to MariaDB, according to Dion Cornett, VP of Global Sales for SkySQL .

Cornett said that customers have been using a wide variety of databases over the past few years in order to meet the diverse requirements of applications.

“The types of applications have evolved over time, and the challenge we now have today is that people have different IT stack structures, and trying to integrate all that has been very challenging and required lots of custom code to be created. What we’re doing with MariaDB is introduce an array of features to combine the best of both worlds,” he said.

The features are designed to allow developers and database administrators to take many different data structures and integrate them and use them in a cohesive application, in the same way that standard database tools presently allow.

These include the Connect Storage Engine, which enables access to a wide variety of file formats such as XML and CSV files, and the ability to run familiar SQL commands against that data.

A key feature is dynamic columns, which enables MariaDB to “smartly interpret” incoming data and adapt it to the data structure that best fits, according to Cornett.

“At a technical level what you’re actually looking at are files within the cells of information that can vary in size, which is not a capability you’ve traditionally had in databases and that flexibility is a big leap forward,” he said.

The new MariaDB products can also plug into the Apache Cassandra storage engine, which can take a columnar data store and read or write against it like it is a traditional SQL table.

An example of how MariaDB Enterprise 2 might be used is if a service provider has a large-scale video server and wants to combine that with billing information, Cornett said.

“The customer’s video history and what they’re consuming could be very unstructured, but the billing structure will be very fixed, and it has been something of a challenge to bring the two of those together up to this point,” he explained.

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Can BB Benefit From The WhatsApp Deal?

Facebook Inc’s awe-inspiring $19 billion bid for fast-growing mobile-messaging startup WhatsApp sent shares of BlackBerry Ltd surging after the closing bell as early as Wednesday, as investors were cheered by the lofty valuation for the messaging platform.

The deal sent shares in BlackBerry up as much as 9 percent in trading after the bell because it put a rough valuation metric around the smartphone maker’s own BlackBerry Messaging service.

BlackBerry Messaging, or BBM as it is more commonly known, was a pioneering mobile-messaging service, but its user base has failed to keep pace with that of WhatsApp, in part because BlackBerry had long refused to open the service to users on other platforms.

WhatsApp, with a user base of some 450 million, has grown rapidly. Its service works on Apple Inc’s iOS platform, Google Inc’s market-dominating Android operating system, along with devices powered by both the Windows and BlackBerry operating systems.

BBM remains popular, even though BlackBerry devices have waned in popularity. Late last year, the Waterloo, Ontario-based smartphone maker finally opened the messaging platform to users of iPhones and Android devices, and the service currently has over 80 million active users.

However, investors have attributed little value to the asset within the company. On Tuesday, Raymond James analyst Steven Li, in a note to clients, broke out a sum-of-parts valuation of the company and pegged the value of BBM at merely $240 million, or $3 per user.

Facebook’s valuation of WhatsApp translates into roughly $42 per user, and that could lead investors and analysts to rethink their valuation of the asset within BlackBerry.

BlackBerry has given no indication it is keen to sell the asset. While there has been some speculation that BlackBerry may seek to carve out the unit, or even sell it, the company’s new Chief Executive John Chen has so far said that BBM remains a core asset for the company.

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Sony Exits PC Business

Sony will unload its struggling PC business to a Japanese investment firm, the company said Thursday, raising the possibility that the “Vaio” brand could all but disappear from markets outside Japan.

Tokyo-based investment fund Japan Industrial Partners (JIP) will operate the Vaio PC brand under a newly established firm and initially sell PCs in Japan only.

In another reform aimed at bolstering its restructuring efforts, Sony also said it would turn its beleaguered TV business into a subsidiary.

The moves come as Sony said it now expects a net loss of $1.1 billion for the year to the end of March, a reversal of its October profit forecast.

Vaio, which Sony introduced in 1996, looks set to vanish from most markets, at least for short term, as the new company will initially concentrate on selling consumer and corporate PCs in Japan. Whether or not Sony will continue to produce products under the Vaio brand remains to be seen, Sony said.

Although Sony is selling its PC business, it will continue to produce tablet computers, part of its renewed focus on mobile devices including smartphones.

Sony did not put a price on the sale. Sony will take a 5% stake in the new firm, it said.

Sony will stop making and selling PCs after its 2014 Spring lineup launch, but about 250 to 300 Sony staff, including some from a subsidiary that produces TV sets, cameras and computers at factories in Japan, will be hired by the new company, which is to be based at the hub of Sony’s current PC business in Japan’s Nagano Prefecture.

Meanwhile, Sony said it will turn its TV business, which has faced a decade of losses, into a wholly owned subsidiary by July 2014.

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Facebook Goes Ten

Facebook plans on celebrating its 10th birthday today, an occasion likely to spur an outpouring of reflection on its past and speculation about its future.

Mark Zuckerberg launched “Thefacebook” from his dorm room at Harvard University on Feb. 4, 2004. The site was conceived as a way to connect students, and let them build an online identity for themselves.

It has since expanded to cover a large swath of the planet, with more than 1.2 billion people — one-seventh of the world’s population — using its site on a monthly basis, according to the company’s own recent figures.

Zuckerberg reflected on the 10-year milestone at an industry conference in Silicon Valley this week. Not surprisingly, at the start he never envisioned Facebook becoming so large or influential. After launching the initial version, “it was awesome to have this utility and community at our school,” he said at the Open Compute Project Summit.

He figured at the time that someone, someday would build such a site for the world. “It didn’t even occur to me that it could be us,” he said.

Since then, Facebook’s site and its business, now a public company, have changed dramatically. There are now more than a trillion status updates, text posts and other pieces of content stored within its walls — the company is trying to index them as part of its Graph Search search engine.

The company was slow to react to the important mobile market, and when it went public in 2012 investors were skeptical it would be able to monetize its service on smaller screens. But this week it reported that more than half its ad revenue now comes from mobile devices.

All the while, Facebook is making its ad business smarter, using targeting tools to show ads it deems most relevant.

The company is also experimenting with new ways to present content. Next week it will release Paper, an iPhone app that provides a new way to share photos and published articles.

It’s part of a larger effort Facebook hinted at this week to release a variety of standalone apps for different tasks.

The company is also trying to bring the Internet to more people in the world, an effort that’s part philanthropy and part business sense as Facebook aims to reach its next billion users. Asked this week why he launched the project, called Internet.org, Zuckerberg suggested he feels a weight of responsibility.

“There aren’t that many companies in the world that have the resources and the reach that Facebook has at this point,” he said.

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