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PC Sales Continue The Downward Trend
Gartner is reporting the biggest slump in PC sales for almost two years. The second quarter report saw 68.4 million units shifted in the three-month period, a year-on-year reduction of 9.4 percent, and the steepest drop in seven quarters.
What’s more, the prediction is that the next quarter will see a further reduction of 4.4 percent.
It seems that the dislike of Windows 8, coupled with the impending arrival of Windows 10, has battered the sales of new PCs.
The fact that most PC users will be entitled to a free upgrade, coupled with the fact that chip and RAM technology haven’t moved on at a spectacular pace this year, has created a perfect storm among consumers who are waiting it out for their machines to be born again on 29 July (or 30, or 31, or possibly 1 August).
If you’re reading this and thinking ‘It’s just a dying market’ you’re not wrong, but you have only to look at today’s IDC figures to see that this really is made of Microsoft.
IDC is even more pessimistic than Gartner, quoting 66.1 million units, down 11.8 percent year on year.
But more importantly, when drilled down to the OEMs, you can see where the real problem lies. Apple is the only company in the top five not rooted in the Windows ecosystem.
It is also the only manufacturer to see a rise in its market share, and is now the fourth biggest vendor in the world, up 16.1 percent. Acer at number five has seen its share plummet by 25.9 percent.
Things were a bit rosier this time last year, because businesses were migrating away from Windows XP (not all of them, mind). This year, there’s no ballast and a lot of hesitation to see exactly how Windows 10 does before big orders start being deployed in enterprises.
“The price hike of PCs became more apparent in some regions due to a sharp appreciation of the US dollar against local currencies,” said Mikako Kitagawa, principal analyst at Gartner.
“The worldwide PC market experienced unusually positive desk-based growth last year due to the end of Windows XP support. After the XP impact was phased out, there have not been any major growth drivers to stimulate a PC refresh.”
IDC’s Loren Loverde, VP of worldwide PC trackers and forecasting, said: “We’re expecting the Windows 10 launch to go relatively well, though many users will opt for a free OS upgrade rather than buying a new PC.
“Competition from 2-in-1 devices and phones remains an issue, but the economic environment has had a larger impact lately, and that should stabilize or improve going forward.”
Meanwhile, Apple, despite having a tiny market share for its OS X operating system at just 7.5 percent, according to this month’s Netmarketshare figures, has managed to avoid being the winner or loser OEM by being the referee, which is a nice trick if you can do it.
Both analyst firms see the top three remaining as Lenovo, HP and Dell. Nothing to see there.
Should Encryption Be The Norm?
Encryption should be a matter of priority and used by default. That’s the message from the Internet Architecture Board (IAB), the worldwide body in charge of the internet’s technology infrastructure.
The IAB warned in a statement that “the capabilities and activities of attackers are greater and more pervasive than previously known”.
It goes on to say: “The IAB urges protocol designers to design for confidential operation by default. We strongly encourage developers to include encryption in their implementations, and to make them encrypted by default.
“We similarly encourage network and service operators to deploy encryption where it is not yet deployed, and we urge firewall policy administrators to permit encrypted traffic.”
The purpose, the IAB claims, is to instill public trust in the internet after the myriad high-profile cases in which computer traffic has been intercepted, ranging from bank details to email addresses and all points in between.
The news will be unwelcome to the security services, which have repeatedly objected to initiatives such as the default encryption in iOS8 and Android L, claiming that it is in the interest of the population to retain the right to intercept data for the prevention of terrorism.
However, leaked information, mostly from files appropriated by rogue NSA contractor Edward Snowden, suggests that the right of information interception is abused by security services including the UK’s GCHQ.
These allegations include the collection of irrelevant data, the investigation of cold cases not in the public interest, and the passing of pictures of nude ladies to colleagues.
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.
Dell Goes Plastic
Dell is manufacturing a line of PCs using plastics obtained by expanding its recycling program.
The company has expanded the hardware take-back program to more places worldwide, aiming to collect and reuse more extracted plastic and metals in PCs, monitors, hardware panels and other products.
Dell’s OptiPlex 3030 all-in-one, which will ship next month, will be the first product of that effort. Starting next year, more laptops, desktops and monitor back-panels will be made using recycled plastic, said Scott O’Connell, director of environmental affairs at Dell. The products will be certified as sustainable by UL (Underwriters Laboratories).
Dell will save money by reusing plastic, but O’Connell did not say whether the savings will be passed on to customers through lower prices. But it will be easier for more people to recycle electronics and Dell will also provide a PC mail-back option, O’Connell said.
Dell’s plan to establish a recycling chain internally could reduce the need for “virgin” plastics, which can be environmentally damaging to make, said Gary Cook, senior IT analyst at Greenpeace International.
Incineration of plastic from disposed computers can be toxic and reusing plastics in new computers or other parts reduces “dirty energy,” Cook said.
“We need to see plastics last longer,” Cook said.
Companies like Apple have helped raise expectations of sustainability in computers and others are following suit, Cook said. PC makers are using more metals in computer chassis and handset makers are using more nonpetroleum plastics.
Dell was criticized last year by Greenpeace for veering away from its carbon-neutral goals and sustainability advocacy. The company ranked 14th among most green IT companies, behind Microsoft, IBM, Hewlett-Packard, Wipro, Fujitsu and Google, among others.
Dell curbed its sustainability strategy when it was trying to go private last year, but has now reinvigorated that effort.
“They are trying to show some initiative,” Cook said.
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.
Did Stuxnet Infect A Russian Nuclear Plant?
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Kaspersky has claimed that the infamous Stuxnet computer worm “badly infected” the internal network of an unnamed Russian nuclear plant after it caused chaos in Iran’s nuclear facilities.
Speaking at a keynote presentation given at the Canberra Press Club 2013, Kaspersky CEO Eugene Kaspersky said a staffer at the unnamed nuclear plant informed him of the infection.
“[The staffer said] their nuclear plant network which was disconnected from the internet was badly infected by Stuxnet,” Kaspersky said.
“So unfortunately these people who were responsible for offensive technologies, they recognise cyber weapons as an opportunity.”
Stuxnet was discovered to have spread throughout industrial software and equipment in 2010 and is believed to have been created by the United States and Israel to attack Iran’s nuclear facilities. According to Kaspersky’s source, the malware was carried into the Russian nuclear plant and installed on a physically separated “air-gapped” network.
Kaspersky also made a rather outlandish joke during his speech, saying that all data is subject to theft. “All the data is stolen,” Kaspersky said. “At least twice.”
“If the claim of the Russian nuclear plant infection is true, then it’s easy to imagine how this “collateral damage” could have turned into a very serious incident indeed, with obvious diplomatic repercussions,” said security expert Graham Cluley.
“There is no way to independently verify the claim, of course. But it is a fact that Stuxnet managed to infect many computer systems outside of its intended target in Iran,” Cluley added. “Indeed, the very fact that it spread out of control, was what lead to its discovery by security firms.”
Earlier this year, Symantec claimed that the Stuxnet computer worm could date back further than 2010 and was more widespread than originally believed.
Symantec’s report called “The Missing Link” found a build of the Stuxnet attack tool, dubbed Stuxnet 0.5, which it said dated back to 2005 and used different techniques to sabotage industrial facilities.
Is Lenovo Eyeing Blackberry?
October 29, 2013 by admin
Filed under Smartphones
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Lenovo reportedly has joined the list of possible Blackberry buyers, with the firm reportedly having approached the struggling Canadian phone maker.
The Wall Street Journal reported that Lenovo, despite previously denying that it was mulling a Blackberry buy (paywalled), has been given the thumbs up to cast an eye over the Canadian company’s books before making it a possible offer.
If reports are to be believed, Lenovo has joined a list of possible buyers that includes Intel, Cisco, SAP, Google, Samsung and LG.
Specific details of Lenovo’s possible acquisition are yet to be revealed, but as a newcomer to the smartphone market Lenovo recently admitted that it is selling more smartphones than tablets and PCs in China, despite being one of the only PC makers to continue showing sales growth.
However, Lenovo’s smartphone portfolio is yet to appear the UK, and the firm hasn’t seen much success outside China. However, picking up Blackberry could help Lenovo enter the global smartphone market, and the firm could be looking to take over from Blackberry as a phone maker focused on business professionals.
Lenovo might have a hard time closing a buyout deal for Blackberry, though. Rumours about a takeover have already led to speculation that such a buyout would struggle to get approval from the US and Canada, due to the company’s Chinese ownership and the fact that Blackberry does business with sensitive parts of both governments.
Blackberry didn’t comment on a possible Lenovo buyout, but instead put out its usual vague statement. A company spokesperson said, “The special committee, with the assistance of Blackberry’s independent financial and legal advisors, is conducting a robust and thorough review of strategic alternatives.”
Lenovo declined to comment on the report.
Banks Join Instant Chat
October 16, 2013 by admin
Filed under Around The Net
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Goldman Sachs Group Inc, JPMorgan Chase & Co and six other financial institutions have agreed to join a new instant messaging network from Markit and Thomson Reuters Corp to connect disparate messaging systems.
The network, called Markit Collaboration Services, launched on Monday and allows members to chat with one another regardless of the proprietary messaging technology that each firm uses.
This open platform differs Bloomberg LP’s messaging system, which is a closed network only for users of Bloomberg terminals.
Bloomberg messaging is the most popular form of chat on Wall Street, and often cited as one of the reasons banks are willing to pay around $20,000 a year for a subscription to a Bloomberg terminal.
Markit and Thomson Reuters said they hoped their open messaging network will attract banks that want to chat with their clients or other financial institutions but cannot currently do so because they are on different messaging systems.
The other banks that have joined the new network are Deutsche Bank, Bank of America Merrill Lynch, Barclays, Citigroup, Credit Suisse and Morgan Stanley, according to a statement from Markit.
The banks collectively employ more than 1 million people worldwide, though it was not immediately clear how many individuals will use the new Markit service.
David Craig, president of Thomson Reuters’ Financial & Risk division, said one of the challenges facing banks is that their messaging systems do not always talk to one another. “That creates costs and complexity,” he said.
Markit and Thomson Reuters said the messages on the new network are encrypted, and the system does not store them.
Representatives from Bank of America, Deutsche Bank, Goldman Sachs and Morgan Stanley were not immediately available to comment on the new messaging system. Representatives from Barclays, Citi, Credit Suisse and JPMorgan also declined to comment.
HTC Cutting US Jobs
September 25, 2013 by admin
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In another sign of trouble at HTC, the Taiwan-based mobile device maker began downsizing its U.S. operations on Friday, eliminating an undisclosed number of staff.
The move is meant to “streamline and optimize” the company’s U.S. organization “after several years of aggressive growth,” HTC said in a Monday email. A company spokeswoman declined to specify how many employees would be affected.
“However, to achieve our long-term goals as a business and return maximum value to our shareholders, this is a necessary step to drive ongoing innovation,” the company said.
HTC has been facing a difficult year on weak earnings that have sent its stock price tumbling. In the second quarter, its net profit plummeted 83 percent year-over-year, despite strong reviews for its flagship smartphone, the HTC One.
The weak financials are major change from only a couple years ago when HTC was riding high selling Android smartphones in the U.S. But starting in late 2011, the company’s net profit has sagged on increased competition from Samsung and Apple.
To recover, HTC has focused on building up its “One” smartphone brand. In addition, the company has expanded its China presence, and in August launched a new marketing campaign that’s enlisted Hollywood actor Robert Downey Jr.
While the company has largely focused selling high-end handsets, in July HTC said it was planning on selling more mid-tier and entry level phones to regain market share. The new phones will launch at end of the third quarter or early fourth quarter.
But the company’s troubles go beyond issues with smartphone sales and marketing. In September, Taiwanese authorities arrested three HTC employees for allegedly stealing company secrets. One of the employees arrested was Thomas Chien, HTC’s vice president of product design.
HTC has declined to offer further details on the case.
Collaborating Viruses Showing Up
Two computer viruses are collaborating to defeat clean-up operations. Microsoft researcher Hyun Choi has found that the pair of viruses foil removal by regularly downloading updated versions of their malware partner.
It is the first time that such a defense plan has been noticed before. Choi said that the Vobfus and Beebone viruses, were regularly found together. Vobfus was the first to arrive on a machine, he said, and used different tactics to infect victims. Vobfus could be installed via booby-trapped links on websites, travel via network links to other machines or lurk on USB drives and infect machines they are plugged into.
Once installed, Vobfus downloaded Beebone which enrolled the machine into a botnet. After this the two start to work together to regularly download new versions of each other. If Vobfus was detected and remediated, it could have downloaded an undetected Beebone which can in turn download an undetected variant of Vobfus.
Vobfus become a persistent problem since 2009 when it first appeared.