Dell has scaled back the range of consumer PCs with processors from Advanced Micro Devices that it sells on its Web site, focussing almost exclusively on systems with Intel processors.
Dell's entire line of AMD-based laptops for consumers, as well as most of its AMD-based consumer desktops, will now be sold only through Dell's 10,000 retail outlets worldwide, said Dell spokeswoman Anne Camden.
Except for one desktop, the Inspiron 531, which includes the AMD Athlon 64 X2 Dual-Core 4000+ processor, Dell will focus its online consumer sales on Intel-based PCs. For businesses, Dell will continue to sell a range of AMD-based systems online.
The decision, made this week, could be a setback for AMD. The Intel rival received a big boost in 2006 when Dell began offering its chips in desktops, laptops and servers.
AMD-based systems tend to be priced lower than Intel-based systems, so it makes sense for Dell to ship AMD products through retail channels, said Dean McCarron, founder and principal at Mercury Research.
"[Dell's decision] is not that surprising given that AMD's primary strength is the consumer retail channel," he said. Price points on PCs tend to be lower in the retail market, and retail buyers are more sensitive to cost than online buyers, McCarron said.
AMD said the move was part of a strategy to offer a wider range of AMD-based PCs through retail channels. "We are always evaluating product offerings and how customers can access them," Camden said.
Not many consumers buy systems based on the processor type, she said, and few distinguish between AMD and Intel processors. Users select PCs based mostly on price and what they will use them for, such as surfing the Web or playing music and videos, she said.
Dell has expanded its in-store offerings over the past six months by signing up more retailers, including Best Buy and Wal-Mart in the U.S., Tesco in the U.K. and Bic Camera in Japan.
The retail strategy helped the company expand its lead over Hewlett-Packard as the largest U.S. PC vendor in the fourth quarter of 2007, according to IDC. However, HP remained the world's largest PC dealer, topping Dell, Acer and Lenovo, IDC said.
Hewlett-Packard already offers more AMD-based PCs in retail than online, so Dell's decision isn't a first, McCarron said. Until it won over top-tier PC vendors several years ago, AMD relied on the retail market and white-box vendors for its chip sales.
The effect of Dell's strategy shift on AMD remains to be seen, McCarron said. It is a large and important PC vendor, but it is also a relatively new partner for AMD.
AMD has suffered some setbacks recently, reporting five straight quarterly losses and delaying shipments of some new desktop and server processors. Its market share was 23 percent in the fourth quarter of 2007, down a fraction from the year before, while Intel's market share climbed slightly to 77 percent, according to IDC.
Monday, February 11, 2008
Yahoo rejects Microsoft offer
Confirming weekend rumors, Yahoo rejected on Monday Microsoft's US$44.6 billion cash-and-stock offer, saying the unsolicited proposal substantially undervalues the company.
In a statement, Yahoo said that its management team, along with financial and legal advisors, believe the offer doesn't reflect cash flow, earnings potential, or recent investments in its advertising platform.
Further, Yahoo said its board would continue to evaluate other "strategic options."
"We remain committed to pursuing initiatives that maximize value for all stockholders," the statement said.
Microsoft offered $31 per share on Feb. 1, which was a 62 percent premium over Yahoo's closing price the day before, and was thus characterized at the time as the proverbial "can't refuse" type. However, since then, Yahoo's stock has risen in value and was trading just above $29 on Monday morning.
At the same time, Microsoft's stock has fallen since it made the offer, closing at $28.56 on Friday, down from a close of $32.60 on the day prior to the offer. Microsoft offered to pay $31 for half of Yahoo's outstanding shares and 0.9509 of a Microsoft share for the other half.
Yahoo's executives were rumored to have been searching for a buyer other than Microsoft. However, no buyer has emerged. Yahoo's latest moves mean that Microsoft may have make a more generous offer, or pursue a hostile takeover.
Microsoft said it believes the acquisition of Yahoo would give it the engineering talent and resources to compete better with Google. While Microsoft and Yahoo have had some success with display advertising, Google's has built a fortune on contextual text ads that appear during a search and on third-party Web sites.
With the offer, Microsoft acknowledged it believes that it and Yahoo can't make a credible run at Google unless they fuse into one organization.
However, skeptics doubt that jointly Microsoft and Yahoo will generate the magic potion that allows them to break Google's stranglehold on the search engine advertising market, the largest segment of the online ad market and the source of Google's riches. Far from making progress, Microsoft and Yahoo have seen their share of search engine queries shrink, as people's preference for Google expands.
If Microsoft acquired Yahoo, it would face the perils and traps of integrating its Internet business with Yahoo, which has 14,000 employees and enough internal problems of its own. The integration process could be long and painful, slowing down both companies while Google speeds further ahead. Eliminating redundancies at the staff, technology and product levels would be a major undertaking.
At the product level, Microsoft and Yahoo have many overlaps in areas like Webmail, instant messaging, advertiser services, portals, content sites, mobile services, online media properties and international properties -- most, if not all, based on different technology platforms that would have to be merged. Then there are the long lists of partnerships and customer engagements that they would have to work through and sync up.
Beyond the inherent challenges in fusing its Internet operations with Yahoo, the bid also prompted swift condemnation from privacy advocates in the U.S., like the Center for Digital Democracy (CDD) and the Electronic Privacy Information Center (EPIC). These organizations argue that a combined Microsoft-Yahoo would have too much power over online journalism, entertainment, advertising and other forms of communications, as well as consumers' data.
Microsoft Monday did not immediately issue a reaction to the Yahoo statement. However, it said when making its offer that it is convinced that the time to make a move is now, when it still sees considerable growth for online advertising on the horizon. Microsoft expects the market for online advertising to almost double in size over the next three years, from $40 billion in 2007 to $80 billion by 2010.
With Yahoo, Microsoft is confident it can supercharge its research-and-development efforts, boost its data center infrastructure and gain a heavy influx of engineering and business talent. Microsoft also see cost reductions at the tune of about $1 billion a year by generating "economies of scale" with a Yahoo fusion.
The merger plan would be drafted jointly by both companies and Microsoft will be aggressive with compensation offers to retain key Yahoo engineers and other staff, Microsoft has said.
While it never characterized the offer as hostile, Yahoo did describe it as unsolicited and didn't embrace it, remaining civil but noncommittal about its options, saying that it would review the offer and make the best decision for the company, its shareholders, customers and employees.
Possibly guessing that Yahoo's management would rather keep the company independent, Google promptly swooped in and blasted the Microsoft proposal, saying it raised "troubling questions" such as whether Microsoft would attempt to replicate its "inappropriate and illegal influence over the Internet that it did with the PC. Google also reportedly entered into discussions with Yahoo over possible partnerships that would allow Yahoo to justify rejecting the offer.
On Monday, The Times of London reported, citing anonymous sources, that Yahoo is actively discussing possible tie-ups not only with Google but also with AOL and Disney.
To be sure, Microsoft would also be taking on a company that has been trying to regain its business and technology edge for about two years, and that has gone through several rounds of dramatic reorganizations and management shakeups. In other words, Yahoo isn't precisely firing on all cylinders and Microsoft's Internet unit would certainly run the risk of catching that corporate malaise if it's unable to provide Yahoo with a quick cure for it.
Of course, Microsoft's Internet business has been far from a top performer as well, long suffering from lackluster performance, despite heavy investments from Microsoft. Critics also say it is afflicted by an identity crisis caused by the introduction of the Live name, which some feel has diluted the brand power of the MSN online services.
Microsoft believes it is still early days not only in search but in social media, and specifically social networking, areas which it believes are ripe for innovation and disruption.
Although the deal is aimed primarily at jump-starting Microsoft's online ad business, Microsoft has also said it hopes that Yahoo could boost efforts to make Windows and Office more Internet-friendly and bring them into the world of Web-hosted software. Microsoft has often been criticized for how slow it's moved to shed its legacy of desktop software to keep up with the innovations of Web 2.0.
Now, all of this is up in the air and it seems the next move is to come from Microsoft.
In a statement, Yahoo said that its management team, along with financial and legal advisors, believe the offer doesn't reflect cash flow, earnings potential, or recent investments in its advertising platform.
Further, Yahoo said its board would continue to evaluate other "strategic options."
"We remain committed to pursuing initiatives that maximize value for all stockholders," the statement said.
Microsoft offered $31 per share on Feb. 1, which was a 62 percent premium over Yahoo's closing price the day before, and was thus characterized at the time as the proverbial "can't refuse" type. However, since then, Yahoo's stock has risen in value and was trading just above $29 on Monday morning.
At the same time, Microsoft's stock has fallen since it made the offer, closing at $28.56 on Friday, down from a close of $32.60 on the day prior to the offer. Microsoft offered to pay $31 for half of Yahoo's outstanding shares and 0.9509 of a Microsoft share for the other half.
Yahoo's executives were rumored to have been searching for a buyer other than Microsoft. However, no buyer has emerged. Yahoo's latest moves mean that Microsoft may have make a more generous offer, or pursue a hostile takeover.
Microsoft said it believes the acquisition of Yahoo would give it the engineering talent and resources to compete better with Google. While Microsoft and Yahoo have had some success with display advertising, Google's has built a fortune on contextual text ads that appear during a search and on third-party Web sites.
With the offer, Microsoft acknowledged it believes that it and Yahoo can't make a credible run at Google unless they fuse into one organization.
However, skeptics doubt that jointly Microsoft and Yahoo will generate the magic potion that allows them to break Google's stranglehold on the search engine advertising market, the largest segment of the online ad market and the source of Google's riches. Far from making progress, Microsoft and Yahoo have seen their share of search engine queries shrink, as people's preference for Google expands.
If Microsoft acquired Yahoo, it would face the perils and traps of integrating its Internet business with Yahoo, which has 14,000 employees and enough internal problems of its own. The integration process could be long and painful, slowing down both companies while Google speeds further ahead. Eliminating redundancies at the staff, technology and product levels would be a major undertaking.
At the product level, Microsoft and Yahoo have many overlaps in areas like Webmail, instant messaging, advertiser services, portals, content sites, mobile services, online media properties and international properties -- most, if not all, based on different technology platforms that would have to be merged. Then there are the long lists of partnerships and customer engagements that they would have to work through and sync up.
Beyond the inherent challenges in fusing its Internet operations with Yahoo, the bid also prompted swift condemnation from privacy advocates in the U.S., like the Center for Digital Democracy (CDD) and the Electronic Privacy Information Center (EPIC). These organizations argue that a combined Microsoft-Yahoo would have too much power over online journalism, entertainment, advertising and other forms of communications, as well as consumers' data.
Microsoft Monday did not immediately issue a reaction to the Yahoo statement. However, it said when making its offer that it is convinced that the time to make a move is now, when it still sees considerable growth for online advertising on the horizon. Microsoft expects the market for online advertising to almost double in size over the next three years, from $40 billion in 2007 to $80 billion by 2010.
With Yahoo, Microsoft is confident it can supercharge its research-and-development efforts, boost its data center infrastructure and gain a heavy influx of engineering and business talent. Microsoft also see cost reductions at the tune of about $1 billion a year by generating "economies of scale" with a Yahoo fusion.
The merger plan would be drafted jointly by both companies and Microsoft will be aggressive with compensation offers to retain key Yahoo engineers and other staff, Microsoft has said.
While it never characterized the offer as hostile, Yahoo did describe it as unsolicited and didn't embrace it, remaining civil but noncommittal about its options, saying that it would review the offer and make the best decision for the company, its shareholders, customers and employees.
Possibly guessing that Yahoo's management would rather keep the company independent, Google promptly swooped in and blasted the Microsoft proposal, saying it raised "troubling questions" such as whether Microsoft would attempt to replicate its "inappropriate and illegal influence over the Internet that it did with the PC. Google also reportedly entered into discussions with Yahoo over possible partnerships that would allow Yahoo to justify rejecting the offer.
On Monday, The Times of London reported, citing anonymous sources, that Yahoo is actively discussing possible tie-ups not only with Google but also with AOL and Disney.
To be sure, Microsoft would also be taking on a company that has been trying to regain its business and technology edge for about two years, and that has gone through several rounds of dramatic reorganizations and management shakeups. In other words, Yahoo isn't precisely firing on all cylinders and Microsoft's Internet unit would certainly run the risk of catching that corporate malaise if it's unable to provide Yahoo with a quick cure for it.
Of course, Microsoft's Internet business has been far from a top performer as well, long suffering from lackluster performance, despite heavy investments from Microsoft. Critics also say it is afflicted by an identity crisis caused by the introduction of the Live name, which some feel has diluted the brand power of the MSN online services.
Microsoft believes it is still early days not only in search but in social media, and specifically social networking, areas which it believes are ripe for innovation and disruption.
Although the deal is aimed primarily at jump-starting Microsoft's online ad business, Microsoft has also said it hopes that Yahoo could boost efforts to make Windows and Office more Internet-friendly and bring them into the world of Web-hosted software. Microsoft has often been criticized for how slow it's moved to shed its legacy of desktop software to keep up with the innovations of Web 2.0.
Now, all of this is up in the air and it seems the next move is to come from Microsoft.
Report: Yahoo plans to reject Microsoft's $44.6B buyout bid
Yahoo's board of directors plans to reject Microsoft's unsolicited US$44.6 billion takeover bid, The Wall Street Journal reported Saturday, citing as its source "a person familiar with the situation."
According to the report, the source said the Yahoo board has determined that the $31-per-share offer "massively undervalues" the online services company. In addition, Microsoft's buyout bid doesn't take into consideration the business risks that Yahoo would be taking if it entered into an agreement that in the end might not be approved by government regulators, the source told the Journal.
According to the Journal, Yahoo's board intends to send Microsoft a letter on Monday, detailing its position.
A Yahoo spokeswoman declined to comment on the report today. "We are not providing details on the board's review process," she wrote. "Yahoo's board is carefully and thoroughly evaluating the Microsoft proposal in the context of all of the company's strategic alternatives, and will pursue the best course of action to maximize long-term value for shareholders."
Microsoft, which announced its offer for Yahoo on Feb. 1, couldn't be reached for comment today. The offer is a combined cash-and-stock deal; in announcing the bid, Microsoft said Yahoo shareholders could choose to receive either cash or Microsoft stock, although it added that the total consideration would be equally split between the two forms of payment.
Yesterday, published reports said that Yahoo's board was meeting to discuss the offer.
Yahoo is still evaluating other options, including a search advertising partnership with Google Inc., according to today's report by the Journal. It also may still be open to a longer negotiation with Microsoft: The Journal said it was told by the source that Yahoo would be unlikely to consider any offers below $40 per share.
If so, that would require Microsoft to raise its original offer by at least 29 percent, or about $13 billion. In other words, the cost for Microsoft to become a more credible rival to Google in the search and online advertising markets could start at about $57.6 billion.
Google has been doing what it can to scuttle the Microsoft takeover bid, including playing the antitrust card by asking, in a blog post by one of its executives last Monday, whether Microsoft might "attempt to exert the same sort of inappropriate and illegal influence over the Internet that it did with the PC?"
Microsoft quickly shot back, issuing a statement saying that a combination of it and Yahoo merger would "create a more competitive marketplace."
(Eric Lai contributed to this story.)
According to the report, the source said the Yahoo board has determined that the $31-per-share offer "massively undervalues" the online services company. In addition, Microsoft's buyout bid doesn't take into consideration the business risks that Yahoo would be taking if it entered into an agreement that in the end might not be approved by government regulators, the source told the Journal.
According to the Journal, Yahoo's board intends to send Microsoft a letter on Monday, detailing its position.
A Yahoo spokeswoman declined to comment on the report today. "We are not providing details on the board's review process," she wrote. "Yahoo's board is carefully and thoroughly evaluating the Microsoft proposal in the context of all of the company's strategic alternatives, and will pursue the best course of action to maximize long-term value for shareholders."
Microsoft, which announced its offer for Yahoo on Feb. 1, couldn't be reached for comment today. The offer is a combined cash-and-stock deal; in announcing the bid, Microsoft said Yahoo shareholders could choose to receive either cash or Microsoft stock, although it added that the total consideration would be equally split between the two forms of payment.
Yesterday, published reports said that Yahoo's board was meeting to discuss the offer.
Yahoo is still evaluating other options, including a search advertising partnership with Google Inc., according to today's report by the Journal. It also may still be open to a longer negotiation with Microsoft: The Journal said it was told by the source that Yahoo would be unlikely to consider any offers below $40 per share.
If so, that would require Microsoft to raise its original offer by at least 29 percent, or about $13 billion. In other words, the cost for Microsoft to become a more credible rival to Google in the search and online advertising markets could start at about $57.6 billion.
Google has been doing what it can to scuttle the Microsoft takeover bid, including playing the antitrust card by asking, in a blog post by one of its executives last Monday, whether Microsoft might "attempt to exert the same sort of inappropriate and illegal influence over the Internet that it did with the PC?"
Microsoft quickly shot back, issuing a statement saying that a combination of it and Yahoo merger would "create a more competitive marketplace."
(Eric Lai contributed to this story.)
Red Hat, Ubuntu top vendor's usage study
Ubuntu and Red Hat are the most used Linux distributions among the 35,000 members of content-management vendor Alfresco's community, the company found in its second survey of trends in enterprise open-source software usage.
The surveys help inform Alfresco's technology strategy, according to Ian Howells, Alfresco's chief marketing officer. "It's important for us to know which platforms to test against first," he said, adding, "It's in users' interest to give us good data."
Among Linux operating systems, usage of Ubuntu and Red Hat stood at 35 percent and 23 percent, respectively, according to the survey. Suse, OpenSuse and Suse Enterprise collectively garnered 13 percent; Debian, 15 percent; and "other" distributions usage of 14 percent.
Users also reported using a variety of proprietary enterprise software.
Among Windows users, Vista adoption was just 2 percent, compared to 63 percent for Windows XP and 28 percent for Windows Server 2003.
Microsoft's Office suite remained strong, however, with 66 percent usage. Twenty-four percent of the respondents reported they used OpenOffice. However, German and French users were twice as likely to use the latter compared to those in the U.S. or U.K., Alfresco said.
Tomcat held a dominant position in the application server category, logging 72 percent. JBoss' entry stood at 18 percent. Entries from Sun, BEA and IBM rounded out the field.
In the virtualization category, VMware perhaps predictably ranked highest, at 61 percent. Microsoft's Virtual Server took 16 percent, followed by Xen, Parallels, Virtual Iron and "other" offerings, according to the study.
MySQL took home the database prize, with a 60 percent tally, followed by Oracle with 14 percent and Microsoft SQL Server with 13 percent.
"It kind of validates that people want to have a mixed stack," Howells said of the overall results.
Alfresco collected data between July and December of last year, with survey participants coming from 260 countries, according to the company. Fifty percent were from Europe, the Middle East and Asia, while 24 percent were in the U.S., and 26 percent from other nations, Alfresco said.
The surveys help inform Alfresco's technology strategy, according to Ian Howells, Alfresco's chief marketing officer. "It's important for us to know which platforms to test against first," he said, adding, "It's in users' interest to give us good data."
Among Linux operating systems, usage of Ubuntu and Red Hat stood at 35 percent and 23 percent, respectively, according to the survey. Suse, OpenSuse and Suse Enterprise collectively garnered 13 percent; Debian, 15 percent; and "other" distributions usage of 14 percent.
Users also reported using a variety of proprietary enterprise software.
Among Windows users, Vista adoption was just 2 percent, compared to 63 percent for Windows XP and 28 percent for Windows Server 2003.
Microsoft's Office suite remained strong, however, with 66 percent usage. Twenty-four percent of the respondents reported they used OpenOffice. However, German and French users were twice as likely to use the latter compared to those in the U.S. or U.K., Alfresco said.
Tomcat held a dominant position in the application server category, logging 72 percent. JBoss' entry stood at 18 percent. Entries from Sun, BEA and IBM rounded out the field.
In the virtualization category, VMware perhaps predictably ranked highest, at 61 percent. Microsoft's Virtual Server took 16 percent, followed by Xen, Parallels, Virtual Iron and "other" offerings, according to the study.
MySQL took home the database prize, with a 60 percent tally, followed by Oracle with 14 percent and Microsoft SQL Server with 13 percent.
"It kind of validates that people want to have a mixed stack," Howells said of the overall results.
Alfresco collected data between July and December of last year, with survey participants coming from 260 countries, according to the company. Fifty percent were from Europe, the Middle East and Asia, while 24 percent were in the U.S., and 26 percent from other nations, Alfresco said.
Sunday, February 10, 2008
Small businesses feel uneasy with the Internet
Only 16 percent of British small business managers think that the Internet has increased their operational efficiency, while nearly half think that it has made running their businesses more complex. That's according to a study carried out by the Cranfield School of Management on behalf of Pipex Business.
The survey of 422 SMEs, conducted by Cranfield, showed that despite a high level of SMEs embracing the Internet for their business (97 percent have email, 94 percent have broadband, and 84 percent have a website), 60 percent do not feel that the Internet has increased their operational efficiency.
"The Internet makes SME lives more difficult," said Cranfield's Prof Burke, who with Dr Hussels, conducted the research. "Only 16 percent of UK SMEs feel the Internet has increased operational efficiency, which is a fairly startling discovery." Indeed, 46 percent feel the Internet has raised the complexity of running their business, with over 62 percent saying the Internet has increased competition from foreign markets - although this has another side, 56 percent of respondents said that the Internet had enabled them to sell their products abroad.
One in three SMEs strongly feel the Internet has made it harder to protect confidential company data, while 48 percent believed the Internet caused employees to waste time, thanks to distractions like social networking, personal web surfing etc.
The research came as part of the launch by Pipex Business of its small business broadband portfolio, as well as the launch of a new portal aimed at providing information tailored for the small business sector. The portal combines information about legal, financial, and HR issues etc, along with news and other features likely to interest the small business user.
Pipex Business was acquired by Tiscali last July, but according to Lance Spencer, Pipex's product and marketing director, it has been around since 1991 and already has 100,000 business customers.
It now offers business-grade ADSL2+ services specifically aimed at the small business market. The cheapest is Pipex Lite (targeting very small businesses), at £14.50 (US$19) per month (excluding VAT), whilst the most expensive is its Premium Plus service (targeting businesses of 10 plus staff), at £49 per month.
There are offered as three month contracts, lessening the fear of user lock-in.
Speaking at the launch of the portfolio in central London on Thursday evening, Spencer said that only 23 percent of small businesses currently use business-grade ADSL, a figure that has not changed much over the past 18 months. Over 40 percent still use "consumer grade" connections of 2Mbit/s or below, with many small businesses stuck on a lowly 512bit/s connection.
Pipex Business is offering speeds from 8MB/s to 16MB/s, with a 24/7 dedicated support call center, as well as bundled anti-virus or security suite offerings, and a free static IP address.
All packages, bar the entry-level offering, offer enhanced care for an extra £10.56 per month, which gives targeted response times "at least four times as quick as those of standard consumer packages." Essentially, this gives the user access to a dedicated escalation team which guarantees that, if a fault is not fixed within 10 hours, they will get a full refund of that month's rental on the affected line.
The survey of 422 SMEs, conducted by Cranfield, showed that despite a high level of SMEs embracing the Internet for their business (97 percent have email, 94 percent have broadband, and 84 percent have a website), 60 percent do not feel that the Internet has increased their operational efficiency.
"The Internet makes SME lives more difficult," said Cranfield's Prof Burke, who with Dr Hussels, conducted the research. "Only 16 percent of UK SMEs feel the Internet has increased operational efficiency, which is a fairly startling discovery." Indeed, 46 percent feel the Internet has raised the complexity of running their business, with over 62 percent saying the Internet has increased competition from foreign markets - although this has another side, 56 percent of respondents said that the Internet had enabled them to sell their products abroad.
One in three SMEs strongly feel the Internet has made it harder to protect confidential company data, while 48 percent believed the Internet caused employees to waste time, thanks to distractions like social networking, personal web surfing etc.
The research came as part of the launch by Pipex Business of its small business broadband portfolio, as well as the launch of a new portal aimed at providing information tailored for the small business sector. The portal combines information about legal, financial, and HR issues etc, along with news and other features likely to interest the small business user.
Pipex Business was acquired by Tiscali last July, but according to Lance Spencer, Pipex's product and marketing director, it has been around since 1991 and already has 100,000 business customers.
It now offers business-grade ADSL2+ services specifically aimed at the small business market. The cheapest is Pipex Lite (targeting very small businesses), at £14.50 (US$19) per month (excluding VAT), whilst the most expensive is its Premium Plus service (targeting businesses of 10 plus staff), at £49 per month.
There are offered as three month contracts, lessening the fear of user lock-in.
Speaking at the launch of the portfolio in central London on Thursday evening, Spencer said that only 23 percent of small businesses currently use business-grade ADSL, a figure that has not changed much over the past 18 months. Over 40 percent still use "consumer grade" connections of 2Mbit/s or below, with many small businesses stuck on a lowly 512bit/s connection.
Pipex Business is offering speeds from 8MB/s to 16MB/s, with a 24/7 dedicated support call center, as well as bundled anti-virus or security suite offerings, and a free static IP address.
All packages, bar the entry-level offering, offer enhanced care for an extra £10.56 per month, which gives targeted response times "at least four times as quick as those of standard consumer packages." Essentially, this gives the user access to a dedicated escalation team which guarantees that, if a fault is not fixed within 10 hours, they will get a full refund of that month's rental on the affected line.
Saturday, February 9, 2008
Wall Street Beat: Cisco forecast weighs on sector
A weak forecast from Cisco marked another roller coaster week for technology companies on the stock market.
The Nasdaq, home to many tech companies, suffered a gut-wrenching 3.1 percent drop Tuesday after a U.S. service sector report showed a decline in the nonmanufacturing index from December to January. Though the index recovered somewhat during the rest of the week, the Tuesday drop was yet another demonstration that IT investors are worried that a broad economic slowdown will affect technology. The decline in the nonmanufacturing sector was the first such drop since the beginning of 2003.
Cisco's earnings report on Wednesday reinforced concerns that the broader economy will have an impact on IT. Cisco forecast revenue for its current fiscal quarter to increase 10 percent, compared to analyst consensus expectations of 15 percent, according to Thomson Financial. On a conference call with analysts, CEO John Chambers said the upcoming quarters will be "extremely challenging."
Confirming fears of market watchers, he also noted that "we are seeing our U.S. and European customers becoming increasingly cautious."
However, sales for the fiscal quarter ending Jan. 26 were up by 16.5 percent to US$9.8 billion. The company has been saying for some time that it will sustain double-digit growth through the rest of the decade by incorporating data, voice, video and mobile capabilities -- its "quadruple play" -- across product lines.
Despite the muted forecast, market watchers still have faith in the company. Company shares rose slightly the day after the report, closing at $23.38, up by $0.30.
The quadruple play pitch still resonates with analysts, and several company watchers noted that Cisco shares have declined along with the wider market over the last few months, giving it a good valuation for long-term investors. Pacific Crest analyst Tim Daubenspeck upgraded the stock to "Outperform" from "Sector Perform."
"Ultimately, we believe that many of the drivers are firmly in place for Cisco to achieve its long-term growth forecast of 12 percent to 17 percent," he said in a research note.
Chambers' cautious forecast, however, could have a bad effect on its suppliers and customers, including electronics manufacturing services and telecom companies. On Thursday, Qwest Communications dropped $0.29 to close at $5.27, Sprint Nextel declined by $0.6 to close at $9.56, and Nortel Networks dropped $0.55 to $10.99.
In other telecom-sector news, Alcatel-Lucent on Friday said revenue for its fourth quarter increased 18 percent to $7.61 billion. The company, however, suffered a net loss of $3.76 billion, mainly because of a writedown related to the shrinking value of assets from Lucent. Company shares declined by $0.29 to $5.96 in midafternoon trading.
Citigroup Global Equity Research said that the Cisco forecast does not bode well for electronics manufacturing suppliers. "Simply put this is not good news for EMS [electronics manufacturing services] companies," wrote Citigroup's Jim Suva in a research note.
Such companies include Jabil Circuit, Celestica and Smart Modular Technologies, he noted.
In other technology sectors, Time Warner's plans to split up the Internet access and audience businesses of its AOL unit, reiterated by CEO Jeff Bewkes Wednesday, gave a temporary boost to Time Warner shares. Time Warner wants to grow AOL's ad-supported audience business, including online services and content.
The company had said before that it would at some point run the two businesses as separate entities, to better focus on the advertising business. Nevertheless, company shares rose $0.31 Wednesday to close at $15.71.
But the company has an uphill battle. In the fourth quarter, AOL's ad revenue increased 18 percent, less than the 25 percent industry average. And it faces not only Google, but a potentially strengthened Microsoft, if its bid to buy Yahoo succeeds.
The Nasdaq, home to many tech companies, suffered a gut-wrenching 3.1 percent drop Tuesday after a U.S. service sector report showed a decline in the nonmanufacturing index from December to January. Though the index recovered somewhat during the rest of the week, the Tuesday drop was yet another demonstration that IT investors are worried that a broad economic slowdown will affect technology. The decline in the nonmanufacturing sector was the first such drop since the beginning of 2003.
Cisco's earnings report on Wednesday reinforced concerns that the broader economy will have an impact on IT. Cisco forecast revenue for its current fiscal quarter to increase 10 percent, compared to analyst consensus expectations of 15 percent, according to Thomson Financial. On a conference call with analysts, CEO John Chambers said the upcoming quarters will be "extremely challenging."
Confirming fears of market watchers, he also noted that "we are seeing our U.S. and European customers becoming increasingly cautious."
However, sales for the fiscal quarter ending Jan. 26 were up by 16.5 percent to US$9.8 billion. The company has been saying for some time that it will sustain double-digit growth through the rest of the decade by incorporating data, voice, video and mobile capabilities -- its "quadruple play" -- across product lines.
Despite the muted forecast, market watchers still have faith in the company. Company shares rose slightly the day after the report, closing at $23.38, up by $0.30.
The quadruple play pitch still resonates with analysts, and several company watchers noted that Cisco shares have declined along with the wider market over the last few months, giving it a good valuation for long-term investors. Pacific Crest analyst Tim Daubenspeck upgraded the stock to "Outperform" from "Sector Perform."
"Ultimately, we believe that many of the drivers are firmly in place for Cisco to achieve its long-term growth forecast of 12 percent to 17 percent," he said in a research note.
Chambers' cautious forecast, however, could have a bad effect on its suppliers and customers, including electronics manufacturing services and telecom companies. On Thursday, Qwest Communications dropped $0.29 to close at $5.27, Sprint Nextel declined by $0.6 to close at $9.56, and Nortel Networks dropped $0.55 to $10.99.
In other telecom-sector news, Alcatel-Lucent on Friday said revenue for its fourth quarter increased 18 percent to $7.61 billion. The company, however, suffered a net loss of $3.76 billion, mainly because of a writedown related to the shrinking value of assets from Lucent. Company shares declined by $0.29 to $5.96 in midafternoon trading.
Citigroup Global Equity Research said that the Cisco forecast does not bode well for electronics manufacturing suppliers. "Simply put this is not good news for EMS [electronics manufacturing services] companies," wrote Citigroup's Jim Suva in a research note.
Such companies include Jabil Circuit, Celestica and Smart Modular Technologies, he noted.
In other technology sectors, Time Warner's plans to split up the Internet access and audience businesses of its AOL unit, reiterated by CEO Jeff Bewkes Wednesday, gave a temporary boost to Time Warner shares. Time Warner wants to grow AOL's ad-supported audience business, including online services and content.
The company had said before that it would at some point run the two businesses as separate entities, to better focus on the advertising business. Nevertheless, company shares rose $0.31 Wednesday to close at $15.71.
But the company has an uphill battle. In the fourth quarter, AOL's ad revenue increased 18 percent, less than the 25 percent industry average. And it faces not only Google, but a potentially strengthened Microsoft, if its bid to buy Yahoo succeeds.
Green Grid lays out ambitious action program
A lack of E.U. regulatory or voluntary initiatives addressing the energy efficiency of data centres risked the creation of "confusion, mixed messages and uncoordinated activities," industry consortium the Green Grid was told this week.
The consortium held its technical committee meeting in San Francisco this week with input from U.S., Japanese and European concerns.
From a European perspective it was said that there was a "need for independent assessment and coordination tailored to European conditions such as the climate and energy markets regulation" and a proposed Code of Conduct "to provide a platform to bring together European stakeholders to discuss and agree voluntary actions which will improve energy efficiency."
The committee heard that data center energy use in U.S. by 2011 will equal 100 billion kWh or 2.5 percent of total electricity costing about US$7 billion. In 2006, it was $4.5 billion. Power demand is growing by 12 percent per year and cooling and power needs can be described as "industrial in terms of size and complexity."
The grid laid out a number of initiatives including save energy now, outlined metrics for energy use in data centers and attempted to lay the ground work for international agreements on a code of conduct, product specifications and best practice.
The consortium set its goal of a 10 percent data center energy savings by 2011, equivalent to cutting 10.7 billion kWh and reducing green house gas emissions by 6.5 million tonnes of CO2.
By 2011 the Green Grid hopes to achieve collective goals of 3000 US data centers to have completed awareness training and 1500 to have applied assessment tools to cut energy use. The initial target is also for 200 enterprise data centers to have improved energy efficiency through accelerated virtualisation, deployment of high efficiency servers, use of new power sources such as fuel cells, optimised cooling and combining heat and power systems. It aims to have 200 qualified specialists in data center energy efficiency to be have been appointed.
It is hoped that the the savings will be made through power conversion and distribution, high voltage distribution, move to DC power, alternative power generation such as on site generation through renewables, and use of fuel cells and waste heat for cooling.
The consortium held its technical committee meeting in San Francisco this week with input from U.S., Japanese and European concerns.
From a European perspective it was said that there was a "need for independent assessment and coordination tailored to European conditions such as the climate and energy markets regulation" and a proposed Code of Conduct "to provide a platform to bring together European stakeholders to discuss and agree voluntary actions which will improve energy efficiency."
The committee heard that data center energy use in U.S. by 2011 will equal 100 billion kWh or 2.5 percent of total electricity costing about US$7 billion. In 2006, it was $4.5 billion. Power demand is growing by 12 percent per year and cooling and power needs can be described as "industrial in terms of size and complexity."
The grid laid out a number of initiatives including save energy now, outlined metrics for energy use in data centers and attempted to lay the ground work for international agreements on a code of conduct, product specifications and best practice.
The consortium set its goal of a 10 percent data center energy savings by 2011, equivalent to cutting 10.7 billion kWh and reducing green house gas emissions by 6.5 million tonnes of CO2.
By 2011 the Green Grid hopes to achieve collective goals of 3000 US data centers to have completed awareness training and 1500 to have applied assessment tools to cut energy use. The initial target is also for 200 enterprise data centers to have improved energy efficiency through accelerated virtualisation, deployment of high efficiency servers, use of new power sources such as fuel cells, optimised cooling and combining heat and power systems. It aims to have 200 qualified specialists in data center energy efficiency to be have been appointed.
It is hoped that the the savings will be made through power conversion and distribution, high voltage distribution, move to DC power, alternative power generation such as on site generation through renewables, and use of fuel cells and waste heat for cooling.
Microsoft's price for Yahoo loses value in week since offer
Microsoft may end up having to raise the amount it is willing to pay for Yahoo if the software company's stock continues to drop while Yahoo's continues to rise.
In the week since Microsoft made its surprise bid for Yahoo, the price Microsoft is willing to offer the Internet company has dropped by nearly 7 percent as Microsoft's share price has fallen. In the meantime, Yahoo's shares have risen in value, trading at nearly the US$31 per share Microsoft was willing to pay, making the company potentially worth a higher asking price and the offer vulnerable to higher bids.
Microsoft announced its offer to acquire Yahoo on Feb. 1, saying it would pay $31 for half of Yahoo's outstanding shares and 0.9509 of a Microsoft share for the other half. Microsoft's half cash/half stock offer to Yahoo was valued at about $44.6 billion at the time it was made.
The stock half was based on the $32.60 Microsoft share price at the end of Thursday, the day before the deal was announced last Friday. Yahoo's share price at the close of market on Jan. 31 was $19.18. The cash half of the deal was $22.3 billion, which, when considering Microsoft agreed to pay $31 per share, is based on half of Yahoo's outstanding shares being 719,354,838.
Microsoft has not publicly said what number of outstanding shares it has based its offer price on. In its form 10-Q filed Nov. 9, 2007, Yahoo's outstanding shares as of Oct. 31, 2007, were 1,336,444,034. However, cutting that number in half and multiplying it by Microsoft's $31 per-share offer adds up to $20.7 billion, not the $22.3 billion in cash Microsoft is offering.
By Friday afternoon, Microsoft's share price was down about 12 percent at $28.4. Based on that price and assuming that 719,354,838 is the other half of Yahoo's outstanding shares -- and then factoring in the $22.3 billion cash offer -- the amount of the bid stands at $41.7 billion.
Microsoft's stock is likely down due to its offer for a number of reasons, said a financial analyst who was interviewed Friday and asked not to be named. Investors may not be happy with the money Microsoft is willing to pay for Yahoo, and strategic questions surrounding how the companies will pull off a merger successfully also are driving the stock down.
Moreover, the deal is expected to dilute Microsoft's earnings in fiscal 2009 and perhaps even in fiscal 2010, so the company's earnings predictions likely will come down, the analyst said.
On the other hand, Yahoo's stock has been buoyed by speculation there could be other, higher bidders, for the company now that Microsoft has shown its hand. Yahoo stock has risen nearly 34 percent since the deal was announced; on Friday afternoon it was trading at nearly $29, which is only slightly lower than the current per-share for the stock half of Microsoft's offer.
Microsoft has declined to comment about whether it will adjust its offer so the final amount of the deal will be the original $44.6 billion offered. The cash half for the time being remains the same, sources close to the company said Friday. However, this could change in last-minute dealings if Microsoft's stock continues to lose value while Yahoo's rises, and other companies offer competitive bids for Yahoo in the meantime.
In the week since Microsoft made its surprise bid for Yahoo, the price Microsoft is willing to offer the Internet company has dropped by nearly 7 percent as Microsoft's share price has fallen. In the meantime, Yahoo's shares have risen in value, trading at nearly the US$31 per share Microsoft was willing to pay, making the company potentially worth a higher asking price and the offer vulnerable to higher bids.
Microsoft announced its offer to acquire Yahoo on Feb. 1, saying it would pay $31 for half of Yahoo's outstanding shares and 0.9509 of a Microsoft share for the other half. Microsoft's half cash/half stock offer to Yahoo was valued at about $44.6 billion at the time it was made.
The stock half was based on the $32.60 Microsoft share price at the end of Thursday, the day before the deal was announced last Friday. Yahoo's share price at the close of market on Jan. 31 was $19.18. The cash half of the deal was $22.3 billion, which, when considering Microsoft agreed to pay $31 per share, is based on half of Yahoo's outstanding shares being 719,354,838.
Microsoft has not publicly said what number of outstanding shares it has based its offer price on. In its form 10-Q filed Nov. 9, 2007, Yahoo's outstanding shares as of Oct. 31, 2007, were 1,336,444,034. However, cutting that number in half and multiplying it by Microsoft's $31 per-share offer adds up to $20.7 billion, not the $22.3 billion in cash Microsoft is offering.
By Friday afternoon, Microsoft's share price was down about 12 percent at $28.4. Based on that price and assuming that 719,354,838 is the other half of Yahoo's outstanding shares -- and then factoring in the $22.3 billion cash offer -- the amount of the bid stands at $41.7 billion.
Microsoft's stock is likely down due to its offer for a number of reasons, said a financial analyst who was interviewed Friday and asked not to be named. Investors may not be happy with the money Microsoft is willing to pay for Yahoo, and strategic questions surrounding how the companies will pull off a merger successfully also are driving the stock down.
Moreover, the deal is expected to dilute Microsoft's earnings in fiscal 2009 and perhaps even in fiscal 2010, so the company's earnings predictions likely will come down, the analyst said.
On the other hand, Yahoo's stock has been buoyed by speculation there could be other, higher bidders, for the company now that Microsoft has shown its hand. Yahoo stock has risen nearly 34 percent since the deal was announced; on Friday afternoon it was trading at nearly $29, which is only slightly lower than the current per-share for the stock half of Microsoft's offer.
Microsoft has declined to comment about whether it will adjust its offer so the final amount of the deal will be the original $44.6 billion offered. The cash half for the time being remains the same, sources close to the company said Friday. However, this could change in last-minute dealings if Microsoft's stock continues to lose value while Yahoo's rises, and other companies offer competitive bids for Yahoo in the meantime.
Microsoft buys 3D company for Virtual Earth
Microsoft has bought Caligari, a developer of 3D modeling software, in a move that could help enrich the graphics experience in Microsoft's Virtual Earth mapping system.
Caligari started making 3D modeling and animation software for the Amiga computer in the mid-1980s. Its signature tool, called trueSpace, has a user interface that makes it easy to build complex 3D animations, according to an entry on the Virtual Earth blog on Wednesday announcing the acquisition.
Caligari has offices in Mountain View, California, and Slovakia. Its development team will work with the Virtual Earth group, and Caligari's "tightly knit community of beta testers" will stay the same, said Roman Ormandy, founder and CEO of Caligari, in a blog posting. He said the company will become a wholly owned subsidiary of Microsoft.
"Now we will have more resources to rely on, larger market to consider and I hope more fun doing that," he wrote.
Microsoft was not available for additional comment.
In December, Microsoft bought Multimap, which also became a wholly owned subsidiary and works with the Virtual Earth and Search groups. Multimap develops online mapping services. At the time of that acquisition, Microsoft said the buy would help it expand its online services offerings to consumers and businesses.
Virtual Earth's 3D version, currently in beta, lets users zoom in and out of 3D maps of cities and natural areas. It is similar to Google's Google Earth product.
Caligari started making 3D modeling and animation software for the Amiga computer in the mid-1980s. Its signature tool, called trueSpace, has a user interface that makes it easy to build complex 3D animations, according to an entry on the Virtual Earth blog on Wednesday announcing the acquisition.
Caligari has offices in Mountain View, California, and Slovakia. Its development team will work with the Virtual Earth group, and Caligari's "tightly knit community of beta testers" will stay the same, said Roman Ormandy, founder and CEO of Caligari, in a blog posting. He said the company will become a wholly owned subsidiary of Microsoft.
"Now we will have more resources to rely on, larger market to consider and I hope more fun doing that," he wrote.
Microsoft was not available for additional comment.
In December, Microsoft bought Multimap, which also became a wholly owned subsidiary and works with the Virtual Earth and Search groups. Multimap develops online mapping services. At the time of that acquisition, Microsoft said the buy would help it expand its online services offerings to consumers and businesses.
Virtual Earth's 3D version, currently in beta, lets users zoom in and out of 3D maps of cities and natural areas. It is similar to Google's Google Earth product.
Antivirus company's Web site serves up malware
The Web site for Indian antivirus vendor AvSoft Technologies has been hacked and is being used to install malicious software on visitors' computers, security researchers said Thursday.
The download section of AvSoft's S-cop Web site hosts the malicious code, according to Roger Thompson, chief research officer with security vendor AVG. "They let one of their pages get hit by an iFrame injection," he said. "It shows that anyone can be a victim. ... It's hard to protect Web servers properly."
The technique used on the site has been seen in thousands of similar hacks over the past few months. The attackers open an invisible iFrame Window within the victim's browser, which redirects the client to another server. That server, in turn, launches attack code that attempts to install malicious software on the victim's computer.
The malicious software is a variant of the Virut virus family.
The iFrame pages are commonly used by Web developers to insert content into their Web pages, but because it is possible to create an invisible iFrame window, the technology is often misused by hackers as a way to silently redirect victims to malicious Web sites.
AvSoft, based in New Delhi, sells an antivirus product called SmartCOP and has sold a second antivirus product called Smartdog. The company, which is not well-known in the U.S., also specializes in recovering data lost due to virus attacks. The company could not be reached for comment Thursday afternoon.
That data recovery service could come in handy for some, as Virut is known as a "parasitic infector" virus that is extremely difficult to remove. "It infects all of your programs on your local hard drives, and then it starts hitting your network drives as well the first time you run," Thompson said.
Fortunately, the malware used to install Virut exploits only well-known bugs, meaning that users who are running antivirus software on fully patched systems will probably not be infected by the attack in its current state, security experts say.
Nobody knows how the malware got onto the Web site in the first place. News of the hack was reported on the Full Disclosure security discussion list on Thursday.
McAfee Security Research Manager Dave Marcus believes that the site was compromised by exploiting a Web programming error, most likely in the site's SQL or PHP code. Security experts say that criminals have written automated programs that scour the Web for these types of flaws and then automatically infect sites, making this an increasingly common problem.
The download section of AvSoft's S-cop Web site hosts the malicious code, according to Roger Thompson, chief research officer with security vendor AVG. "They let one of their pages get hit by an iFrame injection," he said. "It shows that anyone can be a victim. ... It's hard to protect Web servers properly."
The technique used on the site has been seen in thousands of similar hacks over the past few months. The attackers open an invisible iFrame Window within the victim's browser, which redirects the client to another server. That server, in turn, launches attack code that attempts to install malicious software on the victim's computer.
The malicious software is a variant of the Virut virus family.
The iFrame pages are commonly used by Web developers to insert content into their Web pages, but because it is possible to create an invisible iFrame window, the technology is often misused by hackers as a way to silently redirect victims to malicious Web sites.
AvSoft, based in New Delhi, sells an antivirus product called SmartCOP and has sold a second antivirus product called Smartdog. The company, which is not well-known in the U.S., also specializes in recovering data lost due to virus attacks. The company could not be reached for comment Thursday afternoon.
That data recovery service could come in handy for some, as Virut is known as a "parasitic infector" virus that is extremely difficult to remove. "It infects all of your programs on your local hard drives, and then it starts hitting your network drives as well the first time you run," Thompson said.
Fortunately, the malware used to install Virut exploits only well-known bugs, meaning that users who are running antivirus software on fully patched systems will probably not be infected by the attack in its current state, security experts say.
Nobody knows how the malware got onto the Web site in the first place. News of the hack was reported on the Full Disclosure security discussion list on Thursday.
McAfee Security Research Manager Dave Marcus believes that the site was compromised by exploiting a Web programming error, most likely in the site's SQL or PHP code. Security experts say that criminals have written automated programs that scour the Web for these types of flaws and then automatically infect sites, making this an increasingly common problem.
Alcatel-Lucent suffers Q4 loss on writedown
Alcatel-Lucent reported higher sales but a net loss for the fourth quarter due to a big writedown in its CDMA (code division multiple access) and IP (Internet protocol) multimedia services businesses.
The company said revenue rose 18 percent to €5.2 billion on the back of strong performance at several of its major business units. But despite the stronger sales the company saw its net profit plunge into the red to the tune of €2.6 billion. This was largely due to the €2.5 billion writedown.
Its wireline and wireless carrier business was strong and revenues were €3.7 billion in the quarter against €3.2 billion during the same period a year earlier. The company benefited from strong growth in carrier-type optical networking, and the GSM (Global System for Mobile Communications) and WCDMA (Wideband CDMA) sectors. Broadband access revenue fell on the back of a decline in the number of DSL lines delivered.
Revenues were up 27 percent in the services business to €1 billion after the company won large network operations contracts and worked on IPTV and IP network integration projects. Its enterprise business segment saw revenues of €435 million, up about 4 percent, thanks to strong momentum in Europe and Asia.
The report came with bad news for investors. The company suspended its dividend payment for 2007 "in the light of these results and or a more uncertain market outlook," it said.
"We just thought very plainly that it was good financial discipline looking at both our net income in '07 and the very tough macroeconomic environment," said Hubert de Pesquidoux, chief financial officer, on a conference call.
CEO Patricia Russo warned that the company doesn't have a positive short-term outlook, particularly with a looming recession in the U.S. given Alcatel-Lucent's dependance on business there.
"There is a level of uncertainty ... that leaves a lot unknown," Russo said.
Despite interest in IP networking and 3G broadband services, growth over the next year is likely to be flat or just slightly up, Russo said. Taking into account currency differences, the market will likely be down, she said.
Some customers are also pursuing network-sharing arrangements, which could affect how much those companies spend on their own infrastructure, she said.
Russo defended the 2006 merger of Alcatel and Lucent and said the company is still trying to reduce costs. So far, about 6,700 employees have been let go in a restructuring plan that will shed a total of 12,500 employees, she said.
The company said revenue rose 18 percent to €5.2 billion on the back of strong performance at several of its major business units. But despite the stronger sales the company saw its net profit plunge into the red to the tune of €2.6 billion. This was largely due to the €2.5 billion writedown.
Its wireline and wireless carrier business was strong and revenues were €3.7 billion in the quarter against €3.2 billion during the same period a year earlier. The company benefited from strong growth in carrier-type optical networking, and the GSM (Global System for Mobile Communications) and WCDMA (Wideband CDMA) sectors. Broadband access revenue fell on the back of a decline in the number of DSL lines delivered.
Revenues were up 27 percent in the services business to €1 billion after the company won large network operations contracts and worked on IPTV and IP network integration projects. Its enterprise business segment saw revenues of €435 million, up about 4 percent, thanks to strong momentum in Europe and Asia.
The report came with bad news for investors. The company suspended its dividend payment for 2007 "in the light of these results and or a more uncertain market outlook," it said.
"We just thought very plainly that it was good financial discipline looking at both our net income in '07 and the very tough macroeconomic environment," said Hubert de Pesquidoux, chief financial officer, on a conference call.
CEO Patricia Russo warned that the company doesn't have a positive short-term outlook, particularly with a looming recession in the U.S. given Alcatel-Lucent's dependance on business there.
"There is a level of uncertainty ... that leaves a lot unknown," Russo said.
Despite interest in IP networking and 3G broadband services, growth over the next year is likely to be flat or just slightly up, Russo said. Taking into account currency differences, the market will likely be down, she said.
Some customers are also pursuing network-sharing arrangements, which could affect how much those companies spend on their own infrastructure, she said.
Russo defended the 2006 merger of Alcatel and Lucent and said the company is still trying to reduce costs. So far, about 6,700 employees have been let go in a restructuring plan that will shed a total of 12,500 employees, she said.
Samsung shows latest Ultra-edition handset
Samsung Electronics will present the latest model in its popular Ultra edition range of cell phones at the Mobile World Congress exhibition in Barcelona next week.
The phone, dubbed "Soul," is a slider-type handset that with an eye-catching touch panel under the display. The panel displays navigation icons that change according to the current application being run on the handset. For example, in camera mode icons such as zoom and brightness appear while music player functions appear in music mode.
The quad-band GSM (Global System for Mobile Communications) handset supports data downloads of up to 7.2M bps (bits per second) over HSDPA (High Speed Downlink Packet Access) networks and also has Bluetooth 2.0 wireless networking.
Other features include a 5-megapixel camera with face detection and image stabilizer, FM radio with RDS (Radio Data System) and a music system based on technology from Bang & Olufsen.
The phone will be available worldwide and hit Europe in April.
Samsung's Ultra line has proved a hit with style-conscious consumers. All phones in the range emphasize thinness and the new Soul handset is no different at 12.9 millimeters thick. But it's nowhere near as slim as the Ultra 5.9 handset that Samsung unveiled this time last year in Barcelona. The candy bar phone, as the name suggests, is just 5.9 millimeters thick.
The phone, dubbed "Soul," is a slider-type handset that with an eye-catching touch panel under the display. The panel displays navigation icons that change according to the current application being run on the handset. For example, in camera mode icons such as zoom and brightness appear while music player functions appear in music mode.
The quad-band GSM (Global System for Mobile Communications) handset supports data downloads of up to 7.2M bps (bits per second) over HSDPA (High Speed Downlink Packet Access) networks and also has Bluetooth 2.0 wireless networking.
Other features include a 5-megapixel camera with face detection and image stabilizer, FM radio with RDS (Radio Data System) and a music system based on technology from Bang & Olufsen.
The phone will be available worldwide and hit Europe in April.
Samsung's Ultra line has proved a hit with style-conscious consumers. All phones in the range emphasize thinness and the new Soul handset is no different at 12.9 millimeters thick. But it's nowhere near as slim as the Ultra 5.9 handset that Samsung unveiled this time last year in Barcelona. The candy bar phone, as the name suggests, is just 5.9 millimeters thick.
Barclays sells US call center to Indian outsourcer
Barclays' credit card business in the U.S. has struck a five-year deal with Indian outsourcer Firstsource Solutions to run a call center in Colorado Springs, Colorado.
The value of the deal could be as much as US$80 million, according to a notice on Friday sent by Firstsource to the Bombay Stock Exchange.
Barclays opened the operations center in 2005 to primarily handle customer-service calls for its U.S. credit card business. The call center handles about 15,000 inbound calls each day and employs about 370 people, all of whom will continue to work with Barclays' customers. The operations center also provides collection and fraud-prevention services, Barclays said.
The assets of the Colorado Springs facility will be owned by Firstsource, of Mumbai, which plans to use the facility to serve U.S. customers of some of its other clients in addition to Barclays, a spokeswoman for Firstsource said Friday.
Firstsource is also allowed to hire more staff, and the company said it plans to expand its operations, the spokeswoman said. Firstsource already employs about 2,500 people in the U.S.
A number of Indian outsourcers, including Tata Consultancy Services and HCL Technologies, have done similar deals with clients in the U.S. and U.K.
The deals give Indian companies access to new clients who don't necessarily want to trim their domestic staff but would rather turn them over to outside management.
The value of the deal could be as much as US$80 million, according to a notice on Friday sent by Firstsource to the Bombay Stock Exchange.
Barclays opened the operations center in 2005 to primarily handle customer-service calls for its U.S. credit card business. The call center handles about 15,000 inbound calls each day and employs about 370 people, all of whom will continue to work with Barclays' customers. The operations center also provides collection and fraud-prevention services, Barclays said.
The assets of the Colorado Springs facility will be owned by Firstsource, of Mumbai, which plans to use the facility to serve U.S. customers of some of its other clients in addition to Barclays, a spokeswoman for Firstsource said Friday.
Firstsource is also allowed to hire more staff, and the company said it plans to expand its operations, the spokeswoman said. Firstsource already employs about 2,500 people in the U.S.
A number of Indian outsourcers, including Tata Consultancy Services and HCL Technologies, have done similar deals with clients in the U.S. and U.K.
The deals give Indian companies access to new clients who don't necessarily want to trim their domestic staff but would rather turn them over to outside management.
Mozilla patches three critical Firefox flaws
ozilla issued 10 patches on Friday for its Firefox browser, including three for critical vulnerabilities. The latest version of Firefox is now 2.0.0.12.
One of the critical vulnerabilities, MFSA 2008-06, is a problem in the way the browser handles images on certain Web pages.
It's possible to exploit the flaw to steal a person's Web browsing history, forward that information and then crash the browser. It may also be possible to run arbitrary code on a machine, Mozilla said.
A second critical vulnerability can enable a privilege escalation attack or remote code execution.
The last critical problem involves a memory corruption flaw that "we presume that with enough effort at least some of these could be exploited to run arbitrary code," Mozilla said.
Also notable is a fix for a problem with Mozilla's "chrome" protocol, which is the term Mozilla uses for its user interface. The problem involves some of Firefox's add-ons, or applications that users can download which extend browser functionality.
The vulnerability would let an attacker determine what applications are installed on a person's PC, which could give clues to how the machine could be compromised, Mozilla said. However, a victim would have to be lured to a special malicious Web page designed to take advantage of the flaw.
One of the critical vulnerabilities, MFSA 2008-06, is a problem in the way the browser handles images on certain Web pages.
It's possible to exploit the flaw to steal a person's Web browsing history, forward that information and then crash the browser. It may also be possible to run arbitrary code on a machine, Mozilla said.
A second critical vulnerability can enable a privilege escalation attack or remote code execution.
The last critical problem involves a memory corruption flaw that "we presume that with enough effort at least some of these could be exploited to run arbitrary code," Mozilla said.
Also notable is a fix for a problem with Mozilla's "chrome" protocol, which is the term Mozilla uses for its user interface. The problem involves some of Firefox's add-ons, or applications that users can download which extend browser functionality.
The vulnerability would let an attacker determine what applications are installed on a person's PC, which could give clues to how the machine could be compromised, Mozilla said. However, a victim would have to be lured to a special malicious Web page designed to take advantage of the flaw.
Thursday, February 7, 2008
Yahoo still mulling Microsoft bid
Yahoo has not reached a decision about Microsoft's acquisition offer and is considering "a wide range of potential strategic alternatives," Yahoo CEO Jerry Yang said in an e-mail to employees on Wednesday.
In the e-mail, which was addressed to "yahoos" and filed with the U.S. Securities and Exchange Commission, Yang said the Yahoo board is still reviewing the deal and will "take the time it needs to do it right."
"Our board is thoughtfully evaluating a wide range of potential strategic alternatives in what is a complex and evolving landscape," he wrote in the e-mail, typed in all lowercase letters.
Microsoft announced its unsolicited bid for Yahoo last Friday, offering to pay US$44.6 billion for the company, or 62 percent over Yahoo's closing share price Thursday. The deal would greatly expand Microsoft's search and advertising business and could help it to compete better with Google online.
Yahoo is understood to be lukewarm on the offer. The company hopes a rival suitor will emerge with a counteroffer, or that it can forge a deal with Google that will allow it to remain independent, according to Wednesday's Wall Street Journal newspaper, which cited unnamed sources.
However, analysts have said it is unlikely another company could match Microsoft's sizeable offer, and a business deal between Yahoo and Google could raise antitrust concerns because of Google's already dominant market position.
In the e-mail, Yang thanked the Yahoo staff for staying focused on their work amid the turmoil. The company has hired "top advisors" to assist it through the process and is focused on maximizing value for its shareholders, he said.
In the e-mail, which was addressed to "yahoos" and filed with the U.S. Securities and Exchange Commission, Yang said the Yahoo board is still reviewing the deal and will "take the time it needs to do it right."
"Our board is thoughtfully evaluating a wide range of potential strategic alternatives in what is a complex and evolving landscape," he wrote in the e-mail, typed in all lowercase letters.
Microsoft announced its unsolicited bid for Yahoo last Friday, offering to pay US$44.6 billion for the company, or 62 percent over Yahoo's closing share price Thursday. The deal would greatly expand Microsoft's search and advertising business and could help it to compete better with Google online.
Yahoo is understood to be lukewarm on the offer. The company hopes a rival suitor will emerge with a counteroffer, or that it can forge a deal with Google that will allow it to remain independent, according to Wednesday's Wall Street Journal newspaper, which cited unnamed sources.
However, analysts have said it is unlikely another company could match Microsoft's sizeable offer, and a business deal between Yahoo and Google could raise antitrust concerns because of Google's already dominant market position.
In the e-mail, Yang thanked the Yahoo staff for staying focused on their work amid the turmoil. The company has hired "top advisors" to assist it through the process and is focused on maximizing value for its shareholders, he said.
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