SourceCast: Episode 19: We Comin’ For You
Supplier Report: 3/12/2016
This week we dive deeper into IBM’s staff reductions and look at how the street is reacting to the cuts. IBM is also helping Hilton cut jobs (potentially) in the future with a Watson powered concierge.
HPE CEO Meg Whitman is saying quite a few things in the press this week… such as Dell is “doubling down on old technology” and why “Entitled Millennials” save HPE money.
EMC better watch their backs… upstart competitor Infinidat is growing quickly and moving into their back yard.
IBM
- Follow Up: IBM Job Cuts Affect 14,000 Workers, Analyst Firm Estimates
To arrive at the headcount job cut estimate, Bernstein took IBM’s historical cost to cut one employee — $70,000 — and evaluated it based on a $1 billion gain that IBM has realized in conjunction with a settlement with the Japanese Tax Authority. The settlement was reported in the company’s 10-K report, filed February 23. Bernstein noted that IBM’s guidance for 2016 already includes the $1 billion Japanese Tax Authority settlement. Divide $1 billion by 70,000 and you get a little more than 14,000 employees to be cut.
http://www.informationweek.com/strategic-cio/ibm-job-cuts-affect-14000-workers-analyst-firm-estimates/d/d-id/1324633
What the IBM Layoffs Look LikeMany of those commentors are not buying the “workforce rebalancing” spin, or at least, think only a small number of the layoffs are motivated by the need to adjust the company’s skill sets. Instead, they believe the majority of the layoffs are a matter of “workforce relocating,” specifically, out of the U.S. to India, Brazil, Costa Rica, and other countries with cheaper labor costs.
http://spectrum.ieee.org/view-from-the-valley/at-work/tech-careers/is-this-months-ibm-layoff-for-rebalancing-or-is-it-really-for-offshoring
Laid-off IBM Employees Urged by Marc Benioff to Join SalesforceCloud-based Customer Relationship Management solutions provider Salesforce is urging laid-off IBM employees to join their team. Marc Benioff has sent in invitation from his Twitter account reading, “Salesforce opens its hands to help @IBM and any laid off workers send us your cv.”
http://www.thehostingnews.com/laid-off-ibm-employees-urged-by-marc-benioff-to-join-salesforce.html
- Seeking Alpha: All Is Lost At IBM
As a reminder, Seeking Alpha has demonstrated an anti-IBM bias since I started reporting on this blog…IBM bulls may note that the company is pruning deadwood, and that it’s avoiding higher payouts for pensions that are already hurting the balance sheet. But good technology companies don’t treat people as disposable parts.
- KPMG Announces Agreement With IBM Watson To Help Deliver Cognitive-powered Insights
“KPMG’s use of IBM Watson technology will help advance our team’s ability to analyze and act on the core financial and operational data so central to the health of organizations and the capital markets. In addition to the unprecedented possibilities for enhancing quality, the potential for cognitive and related technologies to help us pursue new business offerings is extraordinary.”
- Hilton Hotels Teams Up With IBM For New Robot Concierge Connie
Named after the hotel chain’s founder, Conrad Hilton, Connie is a 2.5-foot-tall Aldebaran Nao robot equipped with IBM Watson and WayBlazer intelligence. As a result, it is capable of answering dozens of routine questions that are usually asked to front desk officers like where to dine, arrangement of tours and which transportation to use.
Storage: Dell | EMC | Infinidat
- Dell closes in on Perot sale to NTT – report
The deal has yet to be finalized nor have the two companies settled on a firm price, according to the Nikkei Asian Review. A $3.52 billion buyout would be 30 percent less than the $5 billion price tag Dell is said to have placed on the Perot business.
- EMC competitor to quadruple headquarters size in big move to Waltham
Infinidat, a provider of enterprise data storage technology that aims to be a competitor to EMC, is quadrupling its U.S. headquarters size in a move from Needham to Waltham. The six-year-old venture-backed company announced Tuesday that it’s moving into a 23,000-square-foot headquarters in Waltham in June, from its original 5,900-square-foot space in Needham.
- Infinidat opens multiple offices after sales quadruple
Infinidat today announced it has opened new EMEA offices in London, Stockholm, Hague and Pretoria in South Africa, as well as five locations in Asia-Pac and Toronto, Canada. It is also in the process of moving to a new US HQ in Massachusetts which is treble the size of its current HQ.
Hewlett Packard Enterprise | HP Inc
- ‘They’re doubling down on old technology’ – Whitman takes dig at Dell-EMC
“We have taken very different strategies in this environment – there’s no question,” she said. “And so we decided to get smaller while they got bigger. We decided to lean into new technology while they’re doubling down on old technology in a cost-takeout play. They levered up while we de-levered. And we are super-focused on being fast and nimble for our customers. So both strategies may work. I happen to like our hand better than the Dell-EMC hand.”
http://www.channelnomics.eu/channelnomics-eu/news/2449969/theyre-doubling-down-on-old-technology-whitman-takes-dig-at-dell-emc
Dell/EMC Merger: Position Defense and Why HP Is UpsetMuch of what Whitman says lacks anything solid behind it, making it clear that she’s got the political promise thing down. But, at some point, it might be nice to see one of the “amazing innovations” supposedly coming out of the company. Dell won’t be able to adequately defend against the HP FUD until the deal is settled. Until it has more than one marginally good quarter under its belt, it might be wise to hold back a bit on the rocks.
- Why HPE Beats HP Inc.
But, there is another factor, perhaps more important. HPE has retained the growing business segments of the old HPQ, while HP Inc. has retained the declining business segments, as discussed in a previous piece here.
http://www.forbes.com/sites/panosmourdoukoutas/2016/03/04/why-hpe-beats-hp-inc/#46a81e8f2ae7
- Why Meg Whitman Relies On ‘Entitled’ 22-Year-Olds For Advice
Whitman says “entitled is too strong a word” to define new graduates, but even that isn’t so bad. In fact, the impatience of today’s youth is useful at a $50 billion sales corporation like Hewlett Packard Enterprise. “They refuse to work on things that do not matter,” she says. She receives emails frequently from young hires complaining that a project they are working on isn’t going anywhere. That’s surprising, but it’s also useful. “You would be surprised how many projects we’ve killed because a 22-year-old says, ‘That’s stupid,’ ” Whitman told the audience. “It’s a little annoying honestly.”
Microsoft
- Satya Nadella’s Bold Plan To Future-Proof Microsoft: Embrace Apple iOS, Android And Now Linux
Nadella’s strategy is to get Microsoft apps and services out there, anywhere, even if it means cozying up to rivals like Apple and Android or, now, the open-source Linux OS. Nadella has little choice. Personal computing is increasingly moving to mobile devices, where Windows badly trails iOS and Android. Businesses, meanwhile, have embraced Linux. The operating system itself is free, so users need only pay for service and maintenance costs.
- Microsoft releases SQL database software for rival Linux system
Microsoft Chief Executive Officer Satya Nadellais trying to boost Microsoft’s sales of databases, which help companies store and analyze data. Its goal is to take customers from top vendor Oracle, whose share of the market was twice that of Microsoft’s in 2014, according to IDC. Adding a Linux database also lets Microsoft target the most complicated, high-performance systems, and helps the company sell more to existing customers that use more than one operating system, Nadella said.
- Microsoft Corporation Backs Out From Slack Acquisition
It is widely believed by many that $8 billion was not enough for the acquisition. With increasing revenues, the app has gained great popularity among enterprise users and it is expected to add several new features that will put it in direct competition with Skype. Hence, it is speculated that even if Microsoft would have offered $8 billion, Slack would not have immediately agreed on the acquisition.
http://www.businessfinancenews.com/28101-microsoft-corporation-backs-out-from-slack-acquisition/
Other
- HPE, Dell and IBM losing ground to ODMs
But none of the top players could match the expansion rate of Gartner’s ‘Others’ category, a collection of unspecified players sitting outside the top five. This includes Quanta and Wistron, two Taiwanese ODMs that have found success selling their boxes into hyperscale datacentres from the likes of Facebook, Google and Microsoft. Those outside the top five saw revenues beef up 18.9 per cent to $4.75bn (£3.35bn) and shipments swell 16 per cent to 1.26 million in Q4.
http://www.channelweb.co.uk/crn-uk/news/2450283/hpe-dell-and-ibm-losing-ground-to-odms
- Better Buy: IBM vs. Oracle
With two wins against IBM’s lone victory, Oracle takes the cake. But it’s a tarnished crown, and both tech giants have a lot to prove right now. The big caveat here is that IBM took the growth title which could point to future victories in other areas, too. But my Tarot cards are in for repairs today, so I can’t tell for sure how all of that will work out over the next few years.
http://www.mysanantonio.com/business/fool/article/Better-Buy-IBM-vs-Oracle-6881787.php
- Microsoft, Salesforce Among Winners as ’3rd Platform’ Replaces IT, Says CLSA
3rd Platform technologies (mobile, cloud, analytics, social business) are growing 13% while 2nd Platform (client-server and first-generation internet technologies) is declining 5%. The gap between them is increasing by a factor of 7x […] The 1st Platform was hardware-centric (you were a DEC or an IBM shop) and the machines dictated IT choices. The 2nd Platform was focused on software (companies would characterize themselves as SAP or Oracle shops). The 3rd Platform is services-centric – Platform as a Service. The megaplatforms where apps will run are at the center of the wave – this includes Microsoft, Google, Oracle, Salesforce, Amazon, IBM and SAP are seven – but there will be consolidation around a smaller number of leaders.
Photo: Andrew Amistad
SourceCast: Episode 18: Eat Your Own Dog Food
Supplier Report: 3/5/2016
IBM is like an elevator at the moment… going both up and down. The company announced job cuts and job growth. IBM’s transformation is becoming more tangible as we can see the humans being impacted (10,000 jobs eliminated in GTS) and growth in others (Watson, Explorys, BI).
We can also see changes at EMC and Dell. The companies announced their combined leadership team post-acquisition as well as some changes in leadership for VMWare.
After HP INC’s bad news last week, the stock market offers some hope to Hewlett Packard Enterprise. Oracle’s hopes of being a solid #2 in the cloud space is evaporating with SAP coming on strong.
IBM
- Explorys added 80 people after IBM deal, expects more growth
Explorys has added about 80 new positions since it was acquired by IBM last May. Now the health care data analytics software company employs about 220 people.
That number is still growing: Explorys had 48 open positions as of Feb. 24, the vast majority of which will be based in Northeast Ohio. The company plans to hire at least 80 people this year, according to CEO Stephen McHale.
- IBM Cuts Jobs In ‘Workforce Rebalancing’
On March 2, he said he began getting hundreds of emails and hundreds of Facebook messages from employees that the layoff had begun. He said the messages conveyed that cuts were hitting GTS and the Global Business Services group, with some additional reports of cuts from the software group and the cloud business. The reports of cuts are coming from workers in the US, France, and the UK. Conrad said he expects to hear more about international layoffs next week, including some from Australia.
Also:
Job cuts are nothing new for IBM. The company was rumored to have engaged in a gigantic job-cut effort in early 2015, too, though no actual numbers were ever confirmed. IBM reduced its 2014 workforce by 12%, from 431,212 in 2013 to 379,592 in 2014, according to numbers provided in its 10-K report.
- IBM Plans to Sell ~$150M Worth of Lenovo Stock
Specifically, IBM will offer 182 million Lenovo shares with a price range of HK$6.26 – HK$6.42. The price is a 6.4 percent discount to Lenovo’s last closing price.
- IBM Creates Breach Response Team With Resilient Systems Acquisition
Last week it was a rumor, this week it is reality…IBM said it plans to use Resilient and its roughly 100 staff – among them security expert Bruce Schneier – as the cornerstone of a new unit called X-Force Incident Response Services, which is to help organisations plan for, manage and respond to cyberattacks, drawing on the skills of about 3,000 consultants and security researchers worldwide.
http://www.techweekeurope.co.uk/security/ibm-breach-response-resilient-acquisition-187098
- IBM’s Watson Provides Brainpower to Turner
“This solution addresses one of the timeless objectives of marketing leaders—infusing new levels of data and science into advertising decisions,” said Adam Steinberg, VP, IBM Cognitive Business Solutions. “Armed with deep, fact-based recommendations, Turner will hone the precision of every advertising recommendation, and in turn, lift the impact of the customers who place advertising on Turner’s award-winning programming.”
http://www.broadcastingcable.com/news/currency/ibms-watson-provides-brainpower-turner/154189
- Buffett Did Not Call IBM A Mistake
I wasn’t going to cover this, but there are so many posts saying Buffett called IBM a mistake.If there was anything of value said about IBM, it was that Buffett still thinks it will be worth more in 10 years than it is worth today and that he generally believes the turnaround effort will pan out. It’s worth noting that Charlie Munger, his erstwhile partner, isn’t particularly convinced of that outcome, though it sounds like he’s a far cry from saying IBM was a mistake, too.
http://seekingalpha.com/article/3940386-buffett-call-ibm-mistake
- Did IBM Just Go ‘Full Patent Troll’?
In the suit, IBM accuses Groupon’s website and app of using technology built by Prodigy to display content, specifically ads, as well as client tracking technology that monitors “service selections while the client is shopping and then use that information when the client decides to make a purchase,”according to PC World.
http://chicagoinno.streetwise.co/2016/03/03/ibm-lawsuit-patent-trolls-groupon-over-prodigy-ip/
Dell | EMC
- VMware leadership changes continue as Dell-EMC deal looms
VMware announced Tuesday that its Chief Operating Officer Carl Eschenbach will resign. According to a Fortune report, Eschenbach is moving to become a venture capitalist at Sequoia Capital. VMware representatives said Eschenbach’s duties will be distributed among several executives. Zane Rowe, EMC’s CFO, took the reins as VMware’s financial lead Tuesday. CFO Jonathan Chadwick, also co-COO, left VMware at the end of January, the same time the company announced plans to cut 800 jobs by the end of March or mid-April.
http://www.ciodive.com/news/vmware-leadership-changes-continue-as-dell-emc-deal-looms/414844/
- Michael Dell unveils leadership line-up for merged Dell-EMC
• Jeremy Burton, chief marketing officer
• Jeff Clarke, vice chairman of operations and client solutions
• Howard Elias and Rory Read, co-chief integration officers
• David Goulden, president of Enterprise Systems Group
• Marius Haas, chief commercial officer
• Steve Price, chief human resources officer
• Karen Quintos, chief customer officer
• Rich Rothberg, general counsel
• John Swainson, president of Dell Software
• Tom Sweet, chief financial officer
• Suresh Vaswani, president of Dell Services - EU clears Dell’s purchase of EMC
HP Inc | Hewlett Packard Enterprise
- Why HP Is Suffering A Slow Death
The first mistake was extreme outsourcing, which was supposed to cut cost and limit corporate size. But instead it ended up giving old HPQ’s advantage away to Asian PC and printer makes, piece-by-piece.
Then came a string of bad acquisitions– in an attempt to fight ‘the last war’ in a number of segments of the technology industry — which drained Hewlett-Packard’s resources. The purchase of Compaq Computer in 2001 was supposed to provide HP with a scale advantage in the PC market and allow it to compete effectively against Dell Computer, IBM, and all sorts of emerging Asian competitors. The purchase of near-bankrupt Palm in 2010 was supposed to help the company enter the fast growing mobile devices market, which began to replace PCs. And the acquisition of enterprise software maker Autonomy in 2011 (at a hefty price of $10.3 billion) pitted the company against three major competitors – Salesforce.com, Oracle, and IBM.
- HP Enterprise rises on reassuring demand
The Silicon Valley company, reporting its first quarterly results since it split in November from printer and personal computer maker HP Inc., on Thursday said net income in its first fiscal quarter fell 52%, including restructuring costs. Revenue declined 2.5%. Excluding the effects of a stronger dollar, however, the company said revenue rose 4%–the third consecutive quarter of growth on a constant currency basis–and both revenue and adjusted profit beat Wall Street expectations.
http://www.marketwatch.com/story/hp-enterprise-rises-on-reassuring-demand-2016-03-03
Oracle
- Oracle CEO Safra Catz advises ‘don’t eat dog food’
Larry is fond of saying we should eat our own dog food. First of all, don’t eat dog food. It’s bad for you. It’s dangerous. We eat our own cooking. That’s correct. We have to eat our own cooking. You know why? Because the entire scale of our business is to the point where I cannot meet the demands of all our customers unless I transform myself, meaning Oracle.
http://www.businessinsider.com/oracle-ceo-advises-dont-eat-dog-food-2016-2
- Oracle Corporation Falls Victim to Hubris as SAP Overtakes Its Cloud Business
Not only has SAP outperformed Oracle recently, but since Bill McDermott took the CEO reigns in February 2010, SAP stock has increased 77%, outpacing Oracle which is up about 60% over the same period.
SAP beating Oracle in the cloud, it is doing so by taking a page out of Oracle’s own playbook — making savvy acquisitions. Over the past five years, the software giant has spent $16 billion acquiring SuccessFactors, Ariba, and most recently, Concur Technologies, a travel and expense software provider. All three company’s solutions already do or will run on HANA, SAP’s application server that includes an in-memory database management solution.
Other
- Want to edge out competitors? Hybrid cloud is key, new IBM study says
The IBM study, titled Growing Up Hybrid: Accelerating Digital Transformation, reported that organizations using hybrid cloud systems are almost three times as likely as their counterparts to monetize their data and the insights gained from data analysis. It also found these organizations five times as likely to use hybrid cloud for predictive intelligence and machine learning applications. Further, more than a third of hybrid cloud organizations polled said they were using their hybrid environments to develop Internet of Things applications.
- Salesforce CEO Benioff: ‘We Will Win In Georgia’ Against ‘Religious Liberty’ Bill
A year ago, Benioff contested a similar law in the Hoosier state, pulling his $8 billion (revenue) company out of hosting a money-generating conference there and offering to relocate employees. That time, Governor Mike Pence had already signed the bill into law. “We didn’t move fast enough,” Benioff says. But Benioff learned several tactics key for reversing Pence’s decision and prompting revisions to the bill.
Photo: Lena Bell
Supplier Report: 2/27/2016
IBM is making friends again. During their InterConnect conference, they announced a new partnership with VMWare, introducing their products on IBM’s cloud services. They also renewed their partnership with Apple, helping the company make progress towards enterprise customers.
Dell is making progress on their acquisition of EMC. The FTC finally approved the merger and the banks lending Dell the money are shopping around portions of the loans (which is seen as a good sign).
HP Inc had a very bad week. PC sales are down over 10% (blaming Windows 10), the stock is down, and they announced an additional 1800 job eliminations.
IBM
- IBM makes major strategic alliance with VMware
VMware and IBM have had a reseller agreement in place until now, with today’s announcement being the first strategic partnership between the two technology firms. It marries together the infrastructure management capabilities of VMware’s products with IBM’s real estate to create a hybrid cloud infrastructure solution that should benefit both companies.
http://www.computerdealernews.com/news/ibm-makes-major-strategic-alliance-with-vmware/46665
VMware undermines its own public cloud with IBM arrangementIt’s easy to see how this is good for IBM, since it brings the large base of VMware shops to IBM’s cloud. But it’s not totally ideal for VMware. With this agreement VMware makes it easy for its customers to use IBM’s cloud rather than its own. However, the arrangement continues to rely on VMware products under the hood so VMware still has a role to play.
http://www.fiercecio.com/story/vmware-undermines-its-own-public-cloud-ibm-arrangement/2016-02-22
- IBM poised to gobble Resilient Systems, says report
The vendor, which helps firms respond to cyber attacks, touched down in Europe a year ago when it went by the name CO3 Systems, and counts Nebulas and NTT Com Security among its UK partners.
Citing two sources with knowledge of the deal, the report said IBM is buying the Massachusetts-based outfit, with one of the two sources putting the acquisition price at more than $100m.
http://www.channelweb.co.uk/crn-uk/news/2448320/ibm-poised-to-gobble-resilient-systems-says-report
- Through Machine Learning, IBM Braintrust Sees Better Days Ahead
John Kelly, IBM’s senior vice president of cognitive solutions and research said most of that $2 trillion will come from eliminating waste in supply chain, research and development, and other processes across industries.
And, in healthcare, a market that’s becoming a big priority for IBM as evidenced by a $4 billion string of acquisitions, there is a lot of waste from missed diagnoses, lack of drug efficacy, and staffing. “We think $200 billion of that is addressable by cognitive solutions,” Kelly said.
- IBM: It’s Not All Gloom
Big Blues’ “blues” are well documented recently. Questions about the CEO being overpaid and the company’s ability to produce miracles are all too common. While we agree that IBM and technology companies in general have to answer the “what next” question emphatically, the stock isn’t without its own set of positives.
- Will Watson Health Cloud Pay off for International Business Machines Corp.?
By 2020 healthcare analytics will be a $21 billion market. And IBM will dominate this market due to Watson. The opportunity of Watson, however, spans beyond healthcare analytics and into Big Data as a whole.
While this is a much more crowded market, it is growing at an annualized rate of 26.5% through 2018, at which point it will be valued at $41.5 billion. Combined, this is a massive market opportunity that can add to IBM’s data, cloud and engagement businesses. Last year, these businesses accounted for 35% of total revenue according to Morgan Stanley, and grew 17% compared to 2014.
http://investorplace.com/2016/02/ibm-stock-watson-health-cloud/
- IBM Cements Security Standing With Redoubled Check Point Alliance
By combining forces, IBM and Check Point aim to thwart what the United Nations estimates is the $445 billion cybercrime underworld. Check Point’s and IBM Security’s researchers will be free to cross company borders to discuss threat data. And several Check Point applications will be folded into IBM technology, Check Point’s vice president of security services, Avi Rembaum, told IBD. The alliance redoubles an 18-year relationship between IBM and Check Point.
- H.I.G. Capital Acquires Portfolio of Compensation Assets from IBM
Todd Ofenloch, Managing Director at H.I.G., added, “We believe as a standalone, focused business with the resources to grow and expand the product offering, Salary.com is capable of furthering its leading market position and compelling potential customers to select its solutions over competitive offerings or continuing to utilize in-house options.”
Microsoft
- Here’s What Steve Ballmer Thinks About Microsoft and Satya Nadella
Ballmer did tell BI that he spoke to the company’s CFO Amy Hood each quarter and acknowledged meeting with Nadella four or five times a year “to brainstorm something or just as a shareholder, we’ll sit down and chat.” But, he was clear to point out, because he’s not a board member or an employee, the company cannot share any information with him that is not shared with other shareholders.
- Microsoft Buys Xamarin To Help Developers Create Cross-Platform Apps
Microsoft has acquired Xamarin, a cross-platform mobile app development platform provider, which will help developers create apps will easily work across iOS, Android and Windows mobile operating systems. This is part of Microsoft’s efforts to woo developers into making apps for the Windows 10 Mobile platform. Here’s what you need to know.
Through the Xamarin platform, developers can develop, test and deliver mobile apps to any device. Xamarin had already works with the Visual Studio development environment and this acquisition will provide even more integration. With Xamarin now a part of the Microsoft family, Visual Studio developers can use a singe shared C# codebase to build native apps on iOS, Android and Windows. This would be welcome news for developers that are interested in building cross-platform native apps.
Dell | EMC
- Dell-EMC Merger Gets FTC Approval, Remains On Track To Close
IT behemoth Dell and data storage giant EMC announced this week that the waiting period for U.S. antitrust regulations regarding the proposed Dell-EMC merger had expired. In addition to the U.S. FTC, both parties are on course to get the required EU approval at the end of the month. Moreover, Chinese authorities are also likely to approve the merger despite the possible impact it might have on Huawei, the current market leader in the data storage space in China. With this regulatory hurdle crossed, Dell can now proceed with the merger pending approval from EMC EMC +1.97% shareholders.
- Banks backing Dell’s EMC deal hit reset button
The banks underwriting the deal, including Credit Suisse, are in the process of selling the most senior portion of loans — about $7 billion — to other banks and are several weeks behind schedule. But there’s enough interest that the bank group is increasing the offering to as much as $9 billion.
http://nypost.com/2016/02/26/banks-backing-dells-emc-deal-hit-reset-button/
Oracle
- Oracle Corporation Boosts Cloud Credentials With Ravello Systems Acquisition
Oracle Corporation (NYSE:ORCL) is the latest entity to complete a tech-sector acquisition as it announced the purchase of Ravello Systems, a company specializing in operating enterprise workload in public cloud setups. Although the acquisition fee remains officially undisclosed so far, VentureBeat reports the deal could be worth $500 million.
Hewlett Packard Enterprise | HP Inc
- HP Sales Down on Weak Printer, PC Revenue
The Palo Alto, Calif., company said earnings from continuing operations declined 16% in the first fiscal quarter ended in January, while revenue fell 12% from the year-earlier period. Total printing revenue declined 17%, with revenue from ink and other supplies down 14% and hardware unit sales off 20%. HP’s PC revenue declined 13% in the first quarter.
http://ww2.cfo.com/technology/2016/02/hp-sales-weak-printer-pc-revenue/
HP Inc blames Windows 10 for drop in PC sales“I still believe [Windows 10 is] a tremendous operating system,” Weisler told investors on conference call this week, transcribed by Seeking Alpha. However, he added: “We have not yet seen the anticipated Windows 10 stimulation of demand that we would have hoped for, and we’re carefully monitoring any sort of price developments that could further weaken demand.”
And Wiesler’s claims are supported by a Gartner report last month that found a lack of Windows 10 uptake at the end of 2015 contributed to a year-on-year drop of 8.3 per cent in the PC market.
- HP wants to “reinvent computing” with a phone called Elite x3
One feature in particular has the company especially excited – Windows Continuum. This technology allows the smartphone operating system to turn into a desktop operating system (on a larger display) once the smartphone is plugged in to a larger display.
http://www.slashgear.com/hp-wants-to-reinvent-computing-with-a-phone-called-elite-x3-21427943/
TechCrunch doesn’t seem to think it will be successful…
HP Announces Yet Another Mobile Product That Will FailAn industry report published earlier last week pegs Windows Phone with only a 1.1% worldwide marketshare in the fourth quarter of 2015. That’s down from 2.2% from 2014 levels. Worse yet, Microsoft’s Windows Phone shipments dropped 57% in the most recent quarter over the previous year. The company only sold 4.5 million Lumia devices compared to 10.5 million from the same time last year.
Essentially, HP built and announced its first modern smartphone on a platform that most indicators say is dying.
http://techcrunch.com/2016/02/21/hp-announces-yet-another-mobile-product-that-will-fail
- HP Inc to cut another 1800 jobs this year
“This move is basically HP Inc embracing the tough pricing environment and shifting their focus to building their portfolio,” says Shannon Cross, an analyst for Cross Research.
http://www.crn.com.au/News/415634,hp-inc-to-cut-another-1800-jobs-this-year.aspx
Other
- Verizon and Splunk are teaming up to deliver threat protection
Verizon has enhanced its flagship Managed Security Services platform by integrating analytics from Splunk Enterprise Security solutions. The combination of Verizon’s platform and Splunk software facilitates the ingestion of data for enrichment with Verizon’s massive amount of threat context data that can be analyzed and correlated to provide more actionable security intelligence to enterprises. Verizon’s ability to manage risks is further enhanced by the visibility gained from owning and operating one of the largest global IP networks. Processing more than one million security events daily places Verizon into the unique position of being able to deliver exceptional insights into how cybercriminals attack and breach organizations.
- Data analytics provider Splunk’s revenue forecast beats estimates
Splunk, whose customers include Tesco Plc and the U.S. Department of State, forecast revenue of about $880 million for the year ending January 2017, well above the average analyst estimate of $650.8 million.
Photo: Мартин Тасев