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Enterprise Needs Driving Cloud Sales Boom
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The cloud continues to gain major ground, driven by enterprise storage needs.
Sales are way up for little-known manufacturers that sell directly to big cloud companies like Google and Facebook, while the market for traditional external storage systems is shrinking, according to research company IDC.
Internet giants and service providers typically don’t use specialized storage platforms in their sprawling data centers. Instead, they buy vast amounts of capacity in the form of generic hardware that’s controlled by software. As users flock to cloud-based services, that’s a growing business.
Revenue for original design manufacturers that sell directly to hyperscale data-center operators grew by 25.8 percent to more than US$1 billion in the second quarter, according to the latest global IDC report on enterprise storage systems. Overall industry revenue rose just 2.1 percent from last year’s second quarter, reaching $8.8 billion.
These so-called ODMs are low-profile vendors, many of them based in Taiwan, that do a lot of their business manufacturing hardware that’s sold under better known brand names. Examples include Quanta Computer and Wistron.
General enterprises aren’t buying many systems from these vendors, but the trends at work in hyperscale deployments are growing across the industry. Increasingly, the platform of choice for storage is a standard x86 server dedicated to storing data, according to IDC analyst Eric Sheppard. Sales of server-based storage rose 10 percent in the quarter to reach $2.1 billion.
Traditional external systems like SANs (storage area networks) are still the biggest part of the enterprise storage business, logging $5.7 billion in revenue for the quarter. But sales in this segment were down 3.9 percent.
Overall demand for storage capacity continued to grow strongly, with 37 percent more capacity shipped in the quarter compared with a year earlier.
Source-http://www.thegurureview.net/aroundnet-category/enterprise-storage-needs-driving-cloud-sales-boom.html
Is HP’s Forthcoming Split A Good Idea?
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HP Has released its financial results for the third quarter and they make for somewhat grim reading.
The company has seen drops in key parts of the business and an overall drop in GAAP net revenue of eight percent year on year to $25.3bn, compared with $27.6bn in 2014.
The company failed to meet its projected net earnings per share, which it had put at $0.50-$0.52, with an actual figure of $0.47.
The figures reflect a time of deep uncertainty at the company as it moves ever closer to its demerger into HP and Hewlett Packard Enterprise. The latter began filing registration documents in July to assert its existence as a separate entity, while the boards of both companies were announced two weeks ago.
Dell CEO Michael Dell slammed the move in an exclusive interview with The INQUIRER, saying he would never do the same to his company.
The big boss at HP remained upbeat, despite the drop in dividend against expectations. “HP delivered results in the third quarter that reflect very strong performance in our Enterprise Group and substantial progress in turning around Enterprise Services,” said Meg Whitman, chairman, president and chief executive of HP.
“I am very pleased that we have continued to deliver the results we said we would, while remaining on track to execute one of the largest and most complex separations ever undertaken.”
To which we have to ask: “Which figures were you looking at, lady?”
Breaking down the figures by business unit, Personal Systems revenue was down 13 percent year on year, while notebook sales fell three percent and desktops 20 percent.
Printing was down nine percent, but with a 17.8 percent operating margin. HP has been looking at initiatives to create loyalty among print users such as ink subscriptions.
The Enterprise Group, soon to be spun off, was up two percent year on year, but Business Critical system revenue dropped by 21 percent, cancelled out by networking revenue which climbed 22 percent.
Enterprise Services revenue dropped 11 percent with a six percent margin, while software dropped six percent with a 20.6 percent margin. Software-as-a-service revenue dropped by four percent.
HP Financial Services was down six percent, despite a two percent decrease in net portfolio assets and a two percent decrease in financing volume.
Source- http://www.thegurureview.net/computing-category/is-hps-forthcoming-split-a-good-idea.html
Has The iPhone Peaked in The U.S.?
August 21, 2015 by admin
Filed under Smartphones
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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.
FCC Wants Carriers To Alert When IP Switching
July 22, 2015 by admin
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The U.S. Federal Communications Commission is backing a requirement that the country’s telecom carriers warn residential and business customers about plans to retire copper telephone networks for IP-based systems.
A proposal from FCC Chairman Tom Wheeler would also require telecom carriers retiring their copper networks to offer customers the option of purchasing battery backup systems so that they don’t lose voice service during an electrical power outage, officials said Friday. IP-based voice service depends on working Internet service, which, in turn, requires electricity.
The old copper-based phone service works without electrical service available at the customer’s address, and a loss of voice service during power outages is one of the major concerns of consumer groups as major telecom carriers move to retire their decades-old copper networks.
Wheeler’s proposal, likely to be voted on by the commission during its Aug. 6 meeting, would require telecom providers that are retiring copper to make battery backup systems with eight hours of standby power available to affected customers, either through the carriers themselves or for third-party retailers. Voice customers would have to pay for the battery backups, which now cost $40 and up, but they could choose whether or not they want the backup.
Most consumers and consumer groups in contact with the FCC wanted the option to purchase battery backup from sources other than carriers, an FCC official said. Requiring battery backup systems during VoIP installs could have discouraged customers from signing up for the service, he added.
Within three years, carriers would have to offer a battery backup option with 24 hours of standby power, under the rules proposed by Wheeler.
Telecom carriers retiring their copper would also have to alert customers that their old telephone service was going away. Telecom carriers currently aren’t required to notify customers, but under the proposed rules, residential customers would get a three-month warning, and business customers would get a six-month warning, agency officials said during a press briefing.
Telecom carriers would also have to notify interconnecting carriers of their copper retirement plans, and competitors using the existing copper to provide business voice and Internet services would be eligible to receive similar pricing deals from the large incumbent carriers, the FCC said.
Is Oracle Sliding?
Oracle said weak sales of its traditional database software licenses were made worse by a strong US dollar lowered the value of foreign revenue.
Shares of Oracle, often seen as a barometer for the technology sector, fell 6 percent to $42.15 in extended trading after the company’s earnings report on Wednesday.
Shares of Microsoft and Salesforce.com, two of Oracle’s closest rivals, were close to unchanged.
Daniel Ives, an analyst at FBR Capital Markets said that this announcement speaks to the headwinds Oracle is seeing in the field as their legacy database business is seeing slowing growth.
It also shows that while Cloud business has seen pockets of strength it is not doing as well as many thought,
Oracle, like other established tech companies, is looking to move its business to the cloud-computing model, essentially providing services remotely via data centres rather than selling installed software.
The 38-year-old company has had some success with the cloud model, but is not moving fast enough to make up for declines in its traditional software sales.
Oracle, along with German rival SAP has been losing market share in customer relationship management software in recent years to Salesforce.com, which only offers cloud-based services.
Because of lower software sales and the strong dollar, Oracle’s net income fell to $2.76 billion, or 62 cents per share, in the fourth quarter ended May 31, from $3.65 billion, or 80 cents per share, a year earlier.
Revenue fell 5.4 percent to $10.71 billion. Revenue rose 3 percent on a constant currency basis. Analysts had expected revenue of $10.92 billion, on average.
Sales from Oracle’s cloud-computing software and platform service, an area keenly watched by investors, rose 29 percent to $416 million.
Acer Shifts Focus To IoT
Acer is still churning out PCs, but the Taiwanese vendor is far more bullish about the Internet of Things (IoT), a market the company doesn’t want to miss out on.
Acer held a news conference not for a new consumer product, but to promote an upcoming miniature PC that will be sold to developers.
The PC, called the aBeing One, will arrive in the third quarter, and is aimed at developers working in the IoT area. It’s designed to connect to smart home and wearable products, and act as a hub that can analyze incoming data from the devices.
The PC vendor has spoken to many IoT companies looking for an affordable hardware system they can develop on, said Robert Wang, a general manager with Acer.
“Fast-moving IoT developers keep running into this issue,” he said after Acer’s news conference. “Now they can buy from us.”
It’s a big change for the vendor, given that it once focused on selling consumer notebooks. However, with PC sales sagging and competition rife in the mobile devices area, the company has been shifting toward enterprise products.
That emphasis was apparent at this week’s Computex show in Taipei. Acer notebooks and tablets were still on display, but equal billing was given to itscloud computing business, which is starting to power IoT devices, not only from Acer, but also its clients.
In addition, Acer is hoping to pave the way for more third-party IoT devices. It has partnered with Canonical to install a version of Ubuntu on its aBeing product, so that the hardware can serve Ubuntu developers working on smart connected gadgets.
RedHat And Canonical Discuss Linux 4.0
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Red Hat has been telling everyone its plans to integrate the latest Linux 4.0 kernel into its products.
In a statement, a spokesman told us, “Red Hat’s upstream community projects will begin working with 4.0 almost immediately; in fact, Fedora 22 Alpha was based on the RC1 version of the 4.0 kernel.
“From a productization perspective, we will keep an eye on these integration efforts for possible inclusion into Red Hat’s enterprise portfolio.
“As with all of our enterprise-grade solutions, we provide stable, secure and hardened features, including the Linux kernel, to our customers – once we are certain that the next iterations of the Linux kernel, be it 4.0 or later, has the features and maturity that our customer base requires, we will begin packaging it into our enterprise portfolio with the intention of supporting it for 10 years, as we do with all of our products.”
Meanwhile, Canonical Head Honcho Mark Shuttleworth has confirmed that Linux Kernel 4.0 should be making its debut in Ubuntu products before the end of the year.
In an earlier note to The INQUIRER, Shuttleworth confirmed that the newly released kernel’s integration was “likely to be in this October release.”
The news follows the release of version 4.0 of the Linux kernel in a flurry of what T S Eliot would describe as “not with a bang but a whimper”.
Writing on the Linux Kernel Mailing List on Sunday afternoon, Linux overlord Linus Torvalds explained that the new version was being released according to schedule, rather than because of any dramatic improvements, and because of a lack of any specific reason not to.
“Linux 4.0 was a pretty small release in linux-next and in final size, although obviously ‘small’ is relative. It’s still over 10,000 non-merge commits. But we’ve definitely had bigger releases (and judging by linux-next v4.1 is going to be one of the bigger ones),” he said.
“Feature-wise, 4.0 doesn’t have all that much special. Much has been made of the new kernel patching infrastructure, but realistically that wasn’t the only reason for the version number change. We’ve had much bigger changes in other versions. So this is very much a ‘solid code progress’ release.”
Come to think of it, it is very unlikely that T S Eliot would ever have written about Linux kernels, but that’s not the point.
Torvalds, meanwhile, explained that he is happier with releasing to a schedule rather than because of any specific feature-related reason, although he does note that there have been four billion code commits, and Linux 3.0 was released after the two billion mark, so there’s a nice symmetry there.
In fact, back in 2011 the version numbering of the Linux kernel was a matter of some debate, and Torvalds’ lacklustre announcement seems to be pre-empting more of the same.
In a subsequent post Torvalds jokes, “the strongest argument for some people advocating 4.0 seems to have been a wish to see 4.1.15 – because ‘that was the version of Linux Skynet used for the T-800 Terminator.’”
Oracle Launches OpenStack Platform With Intel
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Oracle and Intel have teamed up for the first demonstration of carrier-grade network function virtualization (NFV), which will allow communication service providers to use a virtualized, software-defined model without degradation of service or reliability.
The Oracle-led project uses the Intel Open Network Platform (ONP) to create a robust service over NFV, using intelligent direction of software to create viable software-defined networking that replaces the clunky equipment still prevalent in even the most modern networks.
Barry Hill, Oracle’s global head of NFV, told The INQUIRER: “It gets us over one of those really big hurdles that the industry is desperately trying to overcome: ‘Why the heck have we been using this very tightly coupled hardware and software in the past if you can run the same thing on standard, generic, everyday hardware?’. The answer is, we’re not sure you can.
“What you’ve got to do is be smart about applying the right type and the right sort of capacity, which is different for each function in the chain that makes up a service.
“That’s about being intelligent with what you do, instead of making some broad statement about generic vanilla infrastructures plugged together. That’s just not going to work.”
Oracle’s answer is to use its Communications Network Service Orchestration Solution to control the OpenStack system and shrink and grow networks according to customer needs.
Use cases could be scaling out a carrier network for a rock festival, or transferring network priority to a disaster recovery site.
“Once you understand the extent of what we’ve actually done here, you start to realize just how big an announcement this is,” said Hill.
“On the fly, you’re suddenly able to make these custom network requirements instantly, just using off-the-shelf technology.”
The demonstration configuration optimizes the performance of an Intel Xeon E5-2600 v3 processor designed specifically for networking, and shows for the first time a software-defined solution which is comparable to the hardware-defined systems currently in use.
In other words, it can orchestrate services from the management and orchestration level right down to a single core of a single processor, and then hyperscale it using resource pools to mimic the specialized characteristics of a network appliance, such as a large memory page.
“It’s kind of like the effect that mobile had on fixed line networks back in the mid-nineties where the whole industry was disrupted by who was providing the technology, and what they were providing,” said Hill.
“Suddenly you went from 15-year business plans to five-year business plans. The impact of virtualization will have the same level of seismic change on the industry.”
Today’s announcement is fundamentally a proof-of-concept, but the technology that powers this kind of next-generation network is already evolving its way into networks.
Hill explained that carrier demand had led to the innovation. “The telecoms industry had a massive infrastructure that works at a very slow pace, at least in the past,” he said.
“However, this whole virtualization push has really been about the carriers, not the vendors, getting together and saying: ‘We need a different model’. So it’s actually quite advanced already.”
NFV appears to be the next gold rush area for enterprises, and other consortium are expected to make announcements about their own solutions within days.
The Oracle/Intel system is based around OpenStack, and the company is confident that it will be highly compatible with other systems.
The ‘Oracle Communications Network Service Orchestration Solution with Enhanced Platform Awareness using the Intel Open Network Platform’ – or OCNSOSWEPAUTIONP as we like to think of it – is currently on display at Oracle’s Industry Connect event in Washington DC.
The INQUIRER wonders whether there is any way the marketing department can come up with something a bit more catchy than OCNSOSWEPAUTIONP before it goes on open sale.
Juniper Networks Goes OpenStack
Juniper and Mirantis are getting close, with news that they are to form a cloud OpenStack alliance.
The two companies have signed an engineering partnership that the companies believe will lead to a reliable, scalable software-defined networking solution.
Mirantis OpenStack will now inter-operate with Juniper Contrail Networking, as well as OpenContrail, an open source software-defined networking system.
The two companies have published a reference architecture for deploying and managing Juniper Contrail Networking with Mirantis OpenStack to simplify deployment and reduce the need for third-party involvement.
Based on OpenStack Juno, Mirantis OpenStack 6.0 will be enhanced by a Fuel plugin in the second quarter that will make it even easier to deploy large-scale clouds in house.
However, Mirantis has emphasized that the arrival of Juniper to the fold is not a snub to the recently constructed integration with VMware.
Nick Chase of Mirantis explained, “…with this Juniper integration, Mirantis will support BOTH VMware vCenter Server and VMware NSX AND Juniper Networks Contrail Networking. That means that even if they’ve got VMware in their environment, they can choose to use NSX or Contrail for their networking components.
“Of course, all of that begs the question, when should you use Juniper, and when should you use VMware? Like all great engineering questions, the answer is ‘it depends’. How you choose is going to be heavily influenced by your individual situation, and what you’re trying to achieve.”
Juniper outlined its goals for the tie-up as:
– Reduce cost by enabling service providers and IT administrators to easily embrace SDN and OpenStack technologies in their environments
– Remove the complexity of integrating networking technologies in OpenStack virtual data centres and clouds
– Increase the effectiveness of their operations with fully integrated management for the OpenStack and SDN environments through Fuel and Juniper Networks® Contrail SDN Controller
The company is keen to emphasize that this is not meant to be a middle finger at VMware, but rather a demonstration of the freedom of choice offered by open source software. However, it serves as another demonstration of how even the FOSS market is growing increasingly proprietary and competitive.
Cloud Analytics Growth Rate Will Continue
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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.