Posts Tagged ‘Tech’

The tech brands you can trust

November 29th, 2010

Device manufacturers spend billions each year on designing, marketing, and advertising their products. That’s what they need to do to get you to the counter to buy.

But how many of them are willing to spend the money it takes to ensure that their products hold up after the sale has been made, and to service the product if it breaks?

Those are important questions for customers to ask before they buy–and the key questions of our annual Reliability and Service Survey. Each year we survey thousands of our readers to find out which hardware manufacturers have the best–and worst–product reliability and customer service and support.

This year’s response was unprecedented: 79,000 of you rated the tech products you use. With such a large pool of survey data, we learned a great deal about the companies that make laptops, desktops, smartphones, HDTVs, cameras, and printers. Here’s the mile-high view of what we found.

–Put simply, products made by Apple, Asus, Brother, and Canon are typically reliable and well supported.

–Products made by Dell and Hewlett-Packard often aren’t, especially if you’re a home user.

–Laptops are slightly more reliable than before, and have fewer serious problems than desktops.

–Business PC customers are generally more satisfied than their consumer counterparts.

And there’s much, much more.

After you read this article, you may want to jump to PCWorld’s Facebook page, where readers can add their own stories of product reliability and vendor service.

Winners and Losers
Apple once again smoked the competition in the desktop, notebook, and smartphone categories, winning high praise from customers in all reliability and service categories. The Macintosh and iPhone maker did so well that virtually all its scores were above average. Apple’s only average scores were related to the company’s deftness at replacing failed notebook components, and in two areas pertaining to serious problems with the iPhone, the latter perhaps stemming from the iPhone 4’s well-publicized antenna issue that resulted in dropped calls for some users.

Asus did well in ratings among both desktop and laptop owners, though it is best known in North America for its low-cost netbooks. These mini-notebooks have often been the target of derision over the past two years, with critics calling them cheaply made and hard to use. While some netbooks may fit that description, our readers say that Asus portables are, in general, highly reliable.

Canon, which like Apple, is a perennial favorite of PCWorld readers, again rocked the printer and camera categories. It’s not alone at the top, however. In our survey, Panasonic has surpassed Canon in camera reliability, and Brother is gaining popularity among printer users.

Panasonic, the biggest proponent of plasma HDTVs in a market increasingly dominated by LCD models, has a slight edge over LG and Sony. And smartphone users, in addition to praising the iPhone, are particularly happy with Verizon Wireless cell service and with handsets built by HTC. Research In Motion’s BlackBerry phones, however, get low marks for ease of use.

Dell and HP, two of the tech industry’s largest hardware manufacturers, disappointed us this year, particularly in desktops and laptops for home use and (in HP’s case) printers. (We address these two companies’ dismal showings below.)

Overall, it’s clear that many reliability and service problems persist, including defective components that fail out of the box, as well as poorly trained customer service representatives who are incapable of departing from a script.

Golden Apple
Can Apple do no wrong? Indeed, 2010 was a remarkable year for the world’s highest-valued tech company. In addition to unveiling the iPad, a touchscreen tablet that launched a new genre of mobile computing devices, Apple enjoyed record sales and profits. And now it’s won the trifecta by smoking the competition in our reader poll.

IDC computer analyst Bob O’Donnell attributes Apple’s popularity to the company’s stylish, well-made computers and its easy-to-use operating system. “It’s a combination of having high-quality hardware–you pay a premium for it–and a software experience that’s more straightforward,” he says. “And if you have fewer questions, you typically have fewer problems.”

Apple is very good at offering extras too. “You have things like the Genius Bar at all the Apple stores. People literally walk in with their systems, and the [support] guy sits there and says, ‘Oh, yeah, you’ve got to do this, this, and this,’” O’Donnell adds. “It gives you a warm, fuzzy feeling: ‘They’re taking care of me.’ Nobody has anything close to that on the PC side.”

Asus Ascends
The impressive showing by Asus caught our attention as well. This Taiwan-based manufacturer sells an assortment of desktops, such as its all-in-one EeeTop models, and full-size notebooks. But its Eee PC family of mini-notebooks “pioneered the whole netbook concept,” according to ABI Research, and remains the company’s claim to fame, at least in North America.

Our survey doesn’t distinguish between netbooks and laptops, but industry analysts say that any distinction between those categories is irrelevant where reliability is concerned. According to ABI Research analyst Jeff Orr, “Netbooks are made by the same vendors on the same assembly lines as laptop computers. I am not seeing any significant quality differences between netbooks and laptops that use comparable materials. One could argue that lower-cost materials are being substituted, but again this is not being seen.”

Asus shipped 396,000 portable PCs in the United States in the third quarter of 2010, and 201,000 of those were netbooks, according to technology industry research firm IDC. Netbooks may get a bad rap as shoddily built machines, but our survey results suggest this isn’t the case–at least not with Asus gear.

Dell and HP: No More Excuses
Combined, Dell and HP ship nearly half of all PCs sold in the U.S. According to tech industry research firm IDC, HP had just over 24 percent of the American PC market and Dell owned 23 percent in the third quarter of 2010. (Apple and Acer placed a distant third and fourth, each holding 10-plus percent.)

Year after year, readers proclaim HP one of the biggest losers in our Reliability and Service Survey. In 2004, for instance, HP and its Compaq brand were rated last in desktops, and next to last in notebooks and digital cameras. (HP did well that year in printers, however.) The company improved in 2005, earning average grades overall, but then fizzled again in 2007, 2008, and 2009.

Dell’s scorecard has varied over the years, but recent trends are troubling. Its second-to-last laptop ranking in 2009 (only HP did worse) shows a marked decline from 2004 and 2005.

Making Bank on Mediocre?
Interestingly, the perennial grumblings of Dell and HP customers haven’t adversely impacted either company’s bottom line. The assumption may be that because Dell and HP sell PCs at low margins in a tough market, they must minimize spending on support operations; yet HP’s and Dell’s revenue numbers from sales of PCs remain enviable.

Although Dell lost $4 million on its consumer business in the first half of 2010, the company made a total profit of $886 million during that time (that’s 16 percent more than it made in the same period last year). Dell’s lines for small and medium-size businesses accounted for much of its total profits: $636 million, a 34 percent increase from the first half of 2009.

Over at HP, the company’s Personal Systems Group–which includes desktop and notebook PCs, workstations, and handheld devices–saw a year-over-year earnings increase of 18 percent to $1.46 billion for the nine-month period ending July 31, 2010, according to an HP filing with the Securities and Exchange Commission. The company’s Imaging and Printing Group, which sells HP’s home printers, had a 1.66 percent earnings boost to $3.19 billion in the same period.

Meanwhile, several of Dell and HP’s smaller competitors have maintained high survey scores year after year, despite competing in the same cutthroat markets as the Big Two. Asus and Toshiba, which duke it out with Dell and HP in the ultracompetitive Windows laptop market, earned high marks from our readers this year.

That raises the question: If Dell and HP have a profitable business model–one that has enabled them to control half of the U.S. PC market–are they sufficiently motivated to improve their support operations?

They should be. PC and peripheral manufacturers sell in a crowded market, and a customer with an unpleasant support experience is soon a former customer.

HP officials we spoke with expressed surprise at its poor showing in PCWorld’s Reliability and Service Survey. The company has shown improvement recently in similar surveys, they say, including one from the American Customer Satisfaction Index, a University of Michigan business school study based on customer evaluations of the quality of goods and services bought in the United States.

“We’re not happy until all of our customers are happy,” says HP customer service executive Cliff Wagner. “There’s clearly a lot of work that we’re continuing to do, and a lot of investments that we’re doing.”

Those investments include two new customer service and technical support centers in Conway, Arkansas, and Rio Rancho, New Mexico, Wagner says, although both facilities won’t be fully staffed for at least two more years.

“We have not lost our focus on making sure that we’re building customers for life,” adds Jodi Schilling, vice president of HP customer support in North America. “We’re continuing to make investments, not only in the support experience but also in product development.”

If there’s a glimmer of hope for HP, it’s that users who bought machines within the last 12 months were much happier with the company’s support of home desktops and notebooks. (Our one-year chart includes only survey respondents who have bought a PC or printer in the last 12 months.)

It’s possible that HP’s service and support operation devotes more resources to newer customers, resulting in higher satisfaction levels for this group.

Dell’s 12-month results show little change, with home desktops and laptops that aren’t particularly reliable, but with printers that are. Dell business laptops did get higher reliability grades on the one-year chart, but not enough to boost Dell’s standing vis-à-vis the competition.

This year we separated Dell and HP business and home users in the laptop, desktop, and printer categories, in order to compare the satisfaction levels of the vendors’ corporate and consumer customers. For a discussion of the results, see “2010 Reliability and Service: Laptops and Desktops.”

It Takes Only One Frustrating Incident
IDC’s O’Donnell points out that the home market is a challenge to support. But home users aren’t simpletons either, and their frustrations are often born from bad support experiences rather than from self-inflicted slip-ups.

Dan Keller, a medical journalist in Glenside, Pennsylvania, bought an HP Pavilion desktop about three years ago. The CD drive faceplate arrived broken, and HP has yet to replace it, despite his many go-rounds with customer support, he says.

“It wasn’t a run-of-the-mill problem, and they said, ‘That part doesn’t exist,’” Keller says with a laugh. “I said, ‘Well, you’re putting them on computers, they have to exist.’”

Despite the unresolved faceplate issue, Keller’s desktop runs fine. But the frustrating support incident, combined with the poor keyboard layout and other design quirks of an HP laptop he bought recently from Costco (he has since returned it), has soured him on the vendor. “At this point, with two goofy machines, I think I would shy away from HP again,” he says.

Survey Methodology
We surveyed more than 79,000 PCWorld readers who responded to online and print advertisements, as well as e-mail messages, about our survey. With the help of statistical consultant Ferd Britton, we analyzed which companies’ results were reliably above or below the average of all responses pertaining to a certain product type.

It’s important to note that our survey results don’t necessarily represent the opinions of a given company’s customers as a whole. And because our data comes only from PCWorld readers who chose to take the survey, our results don’t necessarily reflect the opinions of PCWorld readers in general.

What the Measures Mean
PCWorld readers rated hardware vendors in six product categories: desktops; notebooks; cameras; HDTVs; printers; and smartphones. Each category (excluding smartphones) had 5 to 9 measurements, each ranking a vendor relative to its competitors. In each measure, we determined whether the vendor’s score was significantly better (s), not significantly different (u), or significantly worse (t) than the average of its peers.

The five reliability measures spotlighted problems with such things as failed components (e.g., a notebook hard drive) or problems that occurred right away or “out of the box.” Among those measurements are two that score our respondents’ overall satisfaction with their vendors’ hardware reliability and customer support.

If a vendor received fewer than 50 responses in a subsection, we discarded the results as statistically insignificant. This threshold prevented us from rating some smaller companies. The measurements in our smartphones category were a bit more comprehensive. We rated smartphone makers using on four reliability measurements and five ease-of-use measurements. For the wireless carriers that sell the smartphones, we measured five different aspects of their customer support, as well as two aspects of their network performance – wireless internet service quality and voice call quality.

Reliability Measures
Problems on arrival (all devices): Based on the percentage of survey respondents who reported any problem with the device out of the box.

Any significant problem (all devices): Based on the percentage of survey respondents who reported any problem at all during the product’s lifetime.

Any failed component replaced (laptop and desktop PCs): Based on the percentage of survey respondents who reported replacing one or more original components because the components had failed.

Core component problem (laptop and desktop PCs): Based on the percentage of survey respondents who reported problems with the processor, motherboard, power supply, hard drive, system memory, or graphics board/chip at any time during the life of their laptop or desktop PC.

Severe problem (HDTVs, phones, cameras, and printers): Based on the percentage of survey respondents who reported a problem that rendered their device impossible to use.

Ease of use (HDTVs, phones, cameras, and printers): Based on the percentage of survey respondents who rated their device as extremely or very easy to use.

Overall satisfaction with reliability (all devices): Based on the owner’s overall satisfaction with the reliability of the device.

Service Measures
Phone hold time: Based on the average time a product’s owners waited on hold to speak to a phone support representative.

Average phone service rating: Based on a cumulative score derived from product owners’ ratings of several aspects of their experience in phoning the company’s technical support service. Among the factors considered were whether the information was easy to understand, and whether the support rep spoke clearly and knowledgeably.

In-person service rating (phones only): Based on a cumulative score derived from phone owners’ ratings of several aspects of technical support received at a service provider’s retail location. Among the factors considered were the ease of getting a representative’s attention in the store, and the knowledge, fairness, and attitude of the rep..

Problem was never resolved: Based on the percentage of survey respondents who said the problem remained after they contacted the company’s support service.

Service experience: Based on a cumulative score derived from product owners’ responses to a series of questions focusing on 11 specific aspects of their experience with the company’s service department.

Source:http://www.pcworld.com/article/211074/the_tech_brands_you_can_trust.html

How Apple could become the world’s biggest tech company

October 31st, 2010

Not many companies get a second chance. In that respect, Apple has led a charmed life. The company led the first boom in personal computers but fell behind the PC juggernaut as Microsoft, the PC clone makers, and a broad array of PC industry supporters soared past Apple, leaving it with about 2 percent of the personal computer market.

Steve Jobs was booted from the company and he came back. He shut down Apple’s clone-licensing program and shifted into the mobile device market with the iPod. That device disrupted the music player market and ushered in the era of cheap content with 99 cent songs. The iPhone extended that disruption into the smartphone market. With apps leading the charge, Apple has grabbed a huge share of the smartphone market.

If Apple hangs onto this market share, it could become the world’s biggest tech company. As Eric Schmidt, chief executive of Google, recently said, computing is now shifting to the phone. We will become a mobile first society as desktop computers and laptops are marginalized by emergence of powerful super phones. Apple has already surpassed the market capitalization of Microsoft in May and in September quarter it passed up Microsoft’s revenues for the first time in 15 years.

On a worldwide basis, Apple has just 4.1 percent of the mobile phone market, up from 2.5 percent a year ago, according to market researcher IDC. Nokia still ships about eight times more phones than Apple does.

But in smartphones, the story is different. Apple has managed to pass up Research in Motion, the maker of the BlackBerry, in terms of smartphones sold per quarter. If Apple hangs on to a larger market share of smartphones — which are poised to become the world’s biggest tech product — then it could become the giant of technology.

Android has emerged to challenge Apple. Through broad and open licensing, Google hopes to overtake Apple and marginalize it the same way that happened in PCs.

Jobs is in a mad scramble to make sure that doesn’t happen, launching its phones in new territories as fast as it can. In that respect, getting off the ground in China, where Android had a lead, was very important to Apple. The company is opening Apple stores everywhere in hopes of marketing its brand as a lifestyle experience. It is using its profits and considerable cash to advertise around the world.

Apple has already proven that it can go vertical — or make more of layers of its products than others do — and succeed. It makes its own operating systems, its own hardware, its own microprocessor chips, and sells devices in its own stores. That allows it to capture more margin and take back revenues that were once considered lost to partners such as Intel or Best Buy.

At the same time, Apple leverages the work of companies such as microprocessor architecture licensor ARM, contract chip manufacturer Taiwan Semiconductor Manufacturing, and hardware assembler Foxconn. Those partners help give Apple the manufacturing and design scale it needs. Apple might even try to cut carriers out of the equation with a move to SIM cards in Europe.

Google hopes to isolate Apple with the openness argument. But the way to beat Apple is to match it on the experience and design of outstanding products and then to bring down the price through high-volume efficiencies. That’s how the tablet makers, phone makers, and PC makers hope to take away Apple’s momentum. At some point, Apple will have to decide whether it wants to become more open and to play in the lowest cost markets.

If it makes the right moves, it could stay ahead of Microsoft and Google and catch up with the likes of IBM and Hewlett-Packard. HP is far behind in smartphones, but it generated $30.7 billion in its most recent quarter ended July 31. Apple posted revenue of $20.3 billion in the quarter ended Sept. 30, while Microsoft reported revenue of $16 billion and IBM reported revenue of $24.3 billion. Apple isn’t all that far away from being on top.

To get to the top and stay there, Apple will have to figure out some tough competitive problems. It will have to try to beat Nokia in the rest of the world in low-cost cell phones. It will likely have to figure out how to challenge HP and IBM in enterprise markets. It has only begun to crack those markets with its mobile devices. But it probably will also need a stronger resurgence of the Mac as a platform in order to make headway. It also needs Apple TV to succeed in a big way and use that success to lever its way into the video game console business (where Apple’s 99 cent apps could again prove disruptive).

Perhaps these challenges are too big and it’s just a fantasy. But to even consider this possibility — that Apple could become the biggest tech company — is a victory in itself. Just a few years ago, it would have seemed ridiculous. Only Apple’s own potential missteps and a broad alliance of enemies can stop Apple.

Source:http://venturebeat.com/2010/10/30/how-apple-could-become-the-worlds-biggest-tech-company-reader-poll/

Tech mahindra eyes hardware solutions

August 9th, 2010

In a shift from its traditional model of delivering software services, Tech Mahindra Ltd (TechM), India’s fifth largest information technology (IT) firm, recently won four orders from telecom customers to buy their hardware infrastructure and run applications for a monthly fee.
The investment in each of the four deals is to the tune of $20-25 million (Rs92-115 crore), said L. Ravichandran, executive vice-president and chief operating officer at TechM, without naming the customers.
Indian IT services firms have traditionally shied away from the hardware business because it is cash-intensive. But they are being wooed by telecom companies that are grappling with a cash crunch after making high investments in networks and licences, particularly in emerging markets.
In effect, customers are “moving their cash flow problem to us”, said Ravichandran.
TechM has found a way out: It gets IT hardware firms to finance its infrastructure purchases from customers. It then builds applications around these and rents the hardware back to its clients.
The firm is in talks with a few US telecom service providers for more such deals, said Ravichandran. None of its four new deals is with US firms.
He added that the new business model earns TechM higher margins than from building and maintaining software. The margins “could be upwards of 5%, after factoring in all the finance costs”, he said.
For the June quarter, its operating margin, or earnings before interest, tax, depreciation and amortization (Ebitda) margin, as a percentage of sales stood at 18.8%—slightly lower than its usual margin. Ebitda is a measure of core performance.
Analysts say TechM, which also owns Satyam Computer Services Ltd, is focusing on new business models for growth from customers in West Asia and Asia-Pacific, as business slows from its largest customer BT Plc. The British telecom firm contributed 46% of TechM’s revenue of Rs1,159 crore for the June quarter.
It may also have to do more than just own and maintain hardware for higher margins.
“Only if they have higher proportion of R&D (research and development) work or testing would they get higher margins. It is a bit tough (to get) with just a combination of hardware and software services,” said Rohit Anand, IT analyst with Pinc Securities, a Mumbai-based brokerage.
TechM earns 65% of its revenue from Europe. It aims to reduce the contribution from customers in the continent to 50%, while expanding in markets such as the US, India, Africa and West Asia.
“The highest growth would be come from emerging markets and then America,” said Ravichandran.
TechM closed 0.36% higher at Rs721.55 on the Bombay Stock Exchange on Monday.

Source:-http://www.livemint.com/2010/08/09213343/Tech-Mahindra-eyes-hardware-so.html?atype=tp

Tech Data Earns Top Honors from Fujitsu, Red Hat and Samsung

July 15th, 2010

Tech Data Corporation (NASDAQ: TECD), a leading distributor of IT products, was recently honored by several industry leading hardware and software vendors for its top performance in mobile computing, data center, document imaging, open source and digital signage solutions distribution.

Two Fujitsu companies—Fujitsu America Inc. and Fujitsu Computer Products of America Inc.—as well as Red Hat Inc. and Samsung Electronics America Inc. recognized Tech Data for helping them grow their businesses.

“What’s most exciting about these awards is that they touch upon so many different product and solutions categories,” said Tech Data Senior Vice President, U.S. Marketing Joe Quaglia. “They demonstrate how Tech Data is excelling across several key emerging and high-demand technology segments. Our Product Marketing and Advanced Infrastructure Solutions divisions, and Specialized Business Units—in concert with our Sales teams—are executing extremely well on behalf of our vendor partners. We are enabling them to engage and recruit the nation’s top resellers and profitably capitalize on the demand for a broad array of technologies among end users of all sizes.”

Tech Data was recognized for generating the largest revenue of all Fujitsu mobile computing and data center solutions distribution partners in the United States. According to Fujitsu, Channel Partner Excellence Awards winners “showed an impressive ability to enable maximum growth and efficiency for clients….”

Through its Client Systems Product Marketing Division, Tech Data distributes the complete portfolio of Fujitsu Lifebook® notebooks, convertibles, tablets and ultra-mobile PCs, as well as a broad array of accessories, and service and warranty agreements. Through the Advanced Infrastructure Solutions Division—dedicated to helping resellers sell, deploy and manage the latest data center solutions—Tech Data distributes Fujitsu ETERNUS® Storage Systems and PRIMERGY® Servers.

Fujitsu Distributor of the Year, Product & Service – For the last decade, Tech Data has been the only recipient of Fujitsu’s annual Distributor of the Year, Product & Service Award. Presented during the Fujitsu annual One Capture Alliance Premier Partner Conference, the company honored Tech Data for its “relentless support” of Fujitsu and for its passion, execution and innovative approach to the business.

Fujitsu document imaging solutions are distributed through Tech Data’s Document Imaging Specialized Business Unit (SBU). Its dedicated team of CDIA+ and ECM certified document imaging and content management specialists are familiar with the latest scanners, storage products, and image capture and management software. The SBU assists resellers developing solutions tailored for use in specific vertical markets. For example, the team is helping resellers transition their healthcare customers to Electronic Health Records (EHR) systems.

Source:http://www.bradenton.com/2010/07/15/2435829/tech-data-earns-top-honors-from.html

Tech companies are on cloud nine

April 20th, 2010

This year, Netflix made what looked like a peculiar choice: the DVD-by-mail company decided that over the next two years, it would move most of its Web technology — customer movie queues, search tools and the like — over to the computer servers of one of its chief rivals, Amazon.com.

Amazon, like Netflix, wants to deliver movies to people’s homes over the Internet. But the online retailer, based in Seattle, has lately gained traction with a considerably more ambitious effort: the business of renting other companies the remote use of its technology infrastructure so they can run their computer operations. In the parlance of technophiles, they would operate “in the cloud.”

Cloud services

Ah, the cloud — these days, Silicon Valley can’t seem to get its head out of it. The idea, though typically expressed in ways larded with jargon, is actually rather simple.

Cloud providers, large ones like Amazon, Microsoft, Google and AT&T, and smaller ones like Rackspace and Terremark, aim to convince other companies to give up building and managing their own data centers and to use their computer capacity instead.

The concept of renting computing power goes back decades, to the days when companies would share space on a single mainframe with big spinning tape drives. The technology industry has matured to the point where there is now an emerging mass market for this rental model.

Led by Amazon, most cloud services have largely been aimed at start-ups, like the legion of Facebook and iPhone applications developers who found they could rent a first-class computing infrastructure on the fly.

Now cloud providers are trying to bring these types of flexible services to the more conservative and lucrative world of large corporations. Although most large companies have taken their first cautious steps into the cloud, many are anxious about data failures and slow delivery of data over a network. They also fear that their confidential information could be vulnerable on another company’s systems, out of their control.

To alleviate those concerns, Google held a daylong conference last week called Atmosphere at its Mountain View, Calif., headquarters, selling its cloud computing services, like e-mail and business software, to executives of large corporations.

Employees of the Amazon Web Services subsidiary are currently on a multicity tour to convince even those companies that might compete with Amazon, like Netflix, to stop building their own data centers and move their data onto Amazon’s servers instead.

Kevin McEntee, Netflix’s vice president of engineering, said Netflix switched in order to “focus our innovation around finding movies, rather than building larger and larger data centers.”

As for tethering Netflix’s future to a rival, McEntee said, “It’s in their interest to make us successful in the cloud. That’s why we felt comfortable.”

In Amazon’s model, businesses pay only for the computing cycles they use. Customers eliminate the upfront cost of computer hardware and can then buy more time on Amazon’s data center as needed.

Companies have also used Amazon as a backup system, either to handle sudden spikes in computing demand or to keep information in a secondary spot in case of a disaster.

In another cloud model, advocated by companies like VMware and I B M, tech companies help large businesses develop “private clouds” in their own data centers, so that various departments and employees can rent computing capacity as they need it without making big budget commitments.

Though Amazon characteristically releases few statistics about its Web Services effort, Citibank estimates that it will generate between $500 million and $700 million this year. That’s less than 3 percent of Amazon’s annual revenue.

Still, Jeffrey P Bezos, Amazon’s chief executive, has predicted that its cloud computing division will one day generate as much revenue as its retail business does now. For that to happen, Amazon and other cloud providers will have to convince big business.

Thinking deep

Almost every big company is cautiously testing the waters these days. 3M, the St. Paul, Minn., conglomerate, is using Microsoft’s new Azure cloud service to allow advertisers and marketers to tap into a service that mathematically analyzes promotional images and evaluates how visually effective they are likely to be. “It took a lot of the risk out of whether to commercialize it or not,” said Jim Graham, a technical manager at 3M.

But most big organizations say they are wary of placing more critical software and business operations on another company’s computers. “We are no different than anybody else. We are concerned about privacy and security and compliance,” said Dave Powers, a senior systems engineer at Eli Lilly, the pharmaceutical giant based in Indianapolis, which uses Amazon’s cloud services for some research and development efforts. “We are very careful about what we are putting out there today.”

Government agencies are looking at it too. NASA’s Jet Propulsion Lab currently runs various experiments on the computers of Amazon, Microsoft and Google — to avoid committing to a single company, said Tomas Soderstrom, the IT chief technology officer there. Among other experiments, the agency is using Amazon’s servers to process vast amounts of telemetry data coming from the rovers on Mars.

“There was a lot of bending on both sides,” said Soderstrom, adding that NASA settled the matter by using a new Amazon Web service called Virtual Private Cloud, which allows a customer to cordon off a collection of servers and use them exclusively as if they were its own hardware.

When given a clean slate, many new companies have chosen a full embrace of the cloud model, figuring the technology industry has matured to the point were these types of services make basic business sense.

For example, Arista Networks, a five-year-old company that makes networking equipment, runs its sales software with a cloud software company called NetSuite, its corporate e-mail on Google Apps, and other Web infrastructure with Amazon.com.

“It’s so much easier,” said Andreas von Bechtolsheim, the co-founder Arista and Sun Microsystems and one of earliest investors in Google and VMware. “For a new company like us, you would just never build a traditional data center anymore.”

Source:http://www.deccanherald.com/content/64968/tech-companies-cloud-nine.html

IBM optimistic amid signs of tech spending rebound

April 20th, 2010

IBM Corp. said Monday its first-quarter profit jumped 13 percent, and the company offered evidence that corporate technology spending is rebounding after the recession.

IBM said it earned $2.6 billion, or $1.97 per share, in the first three months of the year. In the same period of 2009 it earned $2.3 billion, or $1.70 per share.

The improvement came not just from cost cutting, which IBM relied on much of last year to raise profits. In the most recent quarter, revenue climbed 5 percent to $22.9 billion.

The results beat the average analyst estimate of $1.93 per share on revenue of $22.8 billion, according to Thomson Reuters.

Even before Monday, there were signs that more businesses are spending again on technology such as computer servers and software after clamping down during the recession. Last week Intel Corp., the world’s biggest chip maker, said its first-quarter income nearly quadrupled. And analysts at Gartner Inc. said worldwide information-technology spending is expected to rise more than 5 percent in 2010, after falling 1 percent in 2009.

IBM’s results reaffirm that the pickup in IT spending is significant and broad-based, said Annex Research analyst Bob Djurdjevic.

“I expected good things from IBM but I didn’t expect them to be this good,” he said.

On a conference call with analysts Monday, IBM’s chief financial officer, Mark Loughridge, declined to give an opinion on whether the broader market for information technology has return to normal. But of IBM in particular, he said, “I feel like we’ve got a good hand going into the second quarter.”

IBM said its first-quarter revenue would have been flat at constant currency rates. Deals in other currencies translate into more dollars when the U.S. currency is weak.

Although the revenue growth was tepid, it was a bigger increase than what the company had in the last three months of 2009. In that quarter, revenue grew just under 1 percent from the year before, and would have dropped 5 percent at constant currency values. Now, IBM says, its revenue growth in the current quarter should increase even without accounting for currency fluctuations.

The company also lifted its 2010 earnings forecast to $11.20 per share. Analysts were expecting $11.12.

IBM’s earnings report came out after the company’s shares closed up $1.60, or 1.2 percent, at $132.23. In after-hours trading the stock fell 2 percent.

Investors might have been unhappy about the numbers in IBM’s biggest division, which provides technology services and consulting and accounts for more than half of the company’s revenue. Services revenue rose 4 percent to $13.7 billion but would have fallen 2 percent from last year if not for currency fluctuations.

IBM’s signings of new services deals also fell 2 percent during the first quarter, or 7 percent if not for currency adjustments. IBM signed contracts worth $12.3 billion, which is revenue that will mainly be booked in the coming years.

IBM’s most profitable division, software, increased its revenue 11 percent from a year ago to $5 billion. The hardware group, which makes servers and high-end mainframe computers that big organizations use to manage information, rose its revenue 5 percent to $3.4 billion.

Source:http://www.businessweek.com/ap/tech/D9F6DHF80.htm

The deck was stacked against me’

April 15th, 2010

Rami Nahum, the CEO of high-tech company Triple C, asked his PR department after this interview to send us a firm and unequivocal e-mail: “I’d like to remind you that Rami detests the word ‘poor,’” the message said. But the truth is that, whichever way you look at it, it’s impossible to ignore the fact that Nahum was poor.

Today, at age 53, Nahum can look back at his achievements with great satisfaction. The kid from Tiberias who excelled in school but chose to work at a stall in the produce market, became the founder and owner of a high-tech firm based in Petah Tikva that boasts 75 employees and an annual turnover of $40 million.
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“With Triple C, I was able to achieve what I wanted as a boy,” Nahum says, adding that since its founding in 1990, the company has doubled its size each year. At first the company sold UNIX systems – operating systems for large computers. Today Triple C is considered the largest supplier in Israel in the field of computer infrastructure, both hardware and software; it also offers various related services to workplaces.

Nahum is ready and willing to talk about revenues, although he is the sole owner of this private firm, but he will not speak about its profitability. “I work transparently,” he says, “but I won’t say what our profits are. What I can say is that there was no year when I lost money. I always held my head above water. I do not profit big-time, because in these areas you don’t necessarily strike it rich, but I make a respectable living.”

Source:http://www.haaretz.com/hasen/spages/1163423.html

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