Author: Tamlin Magee

Dell’Oro predicts further growth in WLAN

onedollarNetworking and telco analyst house the Dell’Oro Group believes Wireless LAN market revenues could be worth as much as $12 billion in 2017.

The figure is 50 percent larger than revenues for 2012. Key drivers will be deployment of Service Provider Wi-Fi, 802.11ac, cloud managed WLAN, plus additional growth in consumer video using wi-fi and Bring Your Own Device.

Companies such as Cisco, understanding that new LTE networks may be under a great deal of strain in the near future, are also strongly pushing wi-fi to ease the burden.

Dell’Oro group veep Chris DePuy noted that enterprises understand wireless LAN access is critical, however, in the past they have been installing wireless as an overly network, separate from the ethernet network.

When faster 802.11ac wireless systems are installed, DePuy expects there will be an increased understanding that the interaction between ethernet edge switches and enterprise WLAN is worth looking at. So there’s cash to be made for enterprise edge vendors.

The claims are from a recent Dell’Oro report, which also looks specifically at future revenues for cloud managed equipment and services.

UK GDP grows 0.6 percent

ukflagThe latest data from the Office for National Statistics estimates the UK’s Gross Domestic Product (GDP) grew 0.6 percent sequentially in the second quarter, and have predictably been jumped on by both the Conservatives and Labour.

The biggest contribution to GDP was the services industry, growing 0.6 percent or 0.48 percentage points to the 0.6 percent increase. Productive industries also grew with a contribution of 0.08 percentage points, as manufacturing increased 0.4 percent after negative growth in the first quarter. However, all of these industries are well below their pre-crash levels.

The GDP growth, the ONS says, now puts the UK at 3.3 percent below the peak in Q1 2008, before the worldwide economic crash.

The growth was expected by the market and did not affect the London Stock Exchange, the BBC reports.

GDP was growing steadily between 2000 and early 2008 before the financial market crashed. Services continued to grow but production was largely flat, although construction was experiencing a boom at the beginning of the decade. The 2008 crash had an effect on all industries, particularly construction and production.

Economic growth did pick up late 2009 but at a far slower rate than prior to the crash. The crisis in the Eurozone swelled in 2010 creating further economic uncertainties and slowed growth again. According to ONS data, because construction and production has only managed to approach 2009 levels, GDP growth since then is attributable to services instead.

Although GDP growth has been welcomed, it does not necessarily translate into standards of living in real terms, and has its own set of criticisms as a measure of economic wellness.

Shadow chancellor Ed Balls said “families on middle and low incomes are still not seeing any recovery in their living standards,” noting that wages have not risen with prices. Coalition chancellor George Osborne admitted “things are still tough for families”.

The creeping growth – nowhere near pre-2008 levels and after years of remaining flat – is terrifically vulnerable in a very uncertain global economy.

It’s not time to put the Tesco Value Cava on ice just yet: EU countries are increasingly volatile, austerity policies are being demanded all across the world, shocks to the markets could happen at any moment and in private industry, the prevailing attitude is one of caution.

EE raises 4G customer base

eeTelco EE, the result of a merger between Orange and T-Mobile, has managed to boost its first half earnings to £734 million.

EBITDA margins rose to 22.9 percent, compared to 20.3 percent in the first half of 2012. The main drivers were postpaid customer growth and progress in both retail and improving its network. Second quarter revenues fell 2.3 percent year on year to £1.61 billion while customer numbers dropped 2.4 percent to 27.5 million.

EE had a lead on 4G coverage, being awarded spectrum before rivals and raising subscriptions to nearly 700,000 to date – from 500,000 at the beginning of June. It is currently the only operator that has launched LTE all across the UK, and is pursuing an aggressive growth strategy to cement its position as top dog.

Postpaid customers grew 6.3 percent to 14 million, with such customers making up over half of all EE’s subscriber base.

Analyst company IHS notes EE’s monthly average revenue per user (ARPU) fell 1.6 percent year on year to £18.4 on the back of regulation and increased competition.

EE’s chief executive Olaf Swantee would not confirm whether the company would go public, but did say the reason for rumours it will are because margins are being driven up, the Telegraph reports.

IBM shows off zEnterprise BC12

ibm-officeIBM has announced the zEnterprise BC12 – the zBC12 mainframe, built with analytics, cloud, and mobile computing in mind.

Big Blue claims this server, priced at a cool $75,000, is one of the most secure and technologically advanced of its kind. It’s got a 4.2 GHz processor and twice the memory of its predecessor, the z114. IBM boasts it’s cheaper at the acquisition point than the closest competitor.

The zBC12 can handle 40 virtual servers per core or 520 in a single footprint, possibly for as little as $1 per day per server.

There will be a Linux-only version, too, called the Enterprise Linux Server. It includes hardware, a z/VM Hypervisor, three years of maintenance, and can be extended with ELS for Analytics and Cloud-Ready for Linux on System z. IBM says it can run a portfolio of more than 3,000 Linux applications.

IBM has included new hardware functions on the zBC12, such as providing CPU and storage savings by compressing data on the server. Management, IBM says, is simplified through z/OSMF.

The z/OS 2.1 operating system has improvements in performance and scalability. The OS now sports what IBM calls Crypto as a Service, meaning Linux applications can use z/OS to encrypt data.

General manager of IMB System z, Patrick Toole, said analytics, cloud and mobile are changing the way businesses operate.

“IBM’s zEnterprise technologies address these challenges by providing clients with a powerful and highly secure platform to manage new and emerging workloads,” Toole said, “helping speed time to market, reduce costs and stimulate business growth by making stronger connections with customers.”

 

Trend Micro shuffles channel approach

tmicroSecurity company Trend Micro is reshuffling its channel program with a view to boosting access to its cloud and Data Centre Security offerings.

Updates to Deep Security are included in deal registration and specialisation programs, plus an on demand marketing platform that opens up assets for partners. Deep Security offers enterprise class protection to the mid market specifically to prevent data breaches and other possible business disruptions in physical and cloud servers.

It’s an all in one that brings anti malware, web reputation and firewall together, as well as intrusion prevention, integrity monitoring and log inspection. It lets companies virtually patch their critical systems and cut out vulnerabilities before they wreak havoc, as well as helping business make sure they’re up to speed with regulatory requirements such as HIPAA and NERC.

Now, partners will be able to use the deal registration program to simplify their margin structure and make registration easier. The specialisation program will open up additional revenue streams for specialising in specific areas.

The on demand marketing program makes more marketing content available to customers through a dashboard platform, giving them access to co-branded emails and web content.

Veep of US channel sales, Partha Panda, said that there is a lot of money to be made from mid market companies. They “present a tremendous business opportunity for our channel partners and we want to support them with one of the most reliable security solutions available,” Panda said.

Notebooks threatened by panel oversupply

windowscomputexTouch screens could be facing an oversupply as it emerges shipments for notebooks will be lower than expected in Q3 – despite the predicted quarterly growth.

Digitimes reports that top tier vendors like Innolux and BOE, as well as other vendors in China and Taiwan, are expected to expand their production through Q3 and into early 2014, threatening oversupply in the market.

According to Digitimes’ industry sources, 4.3 million square metres of panel surface ar expected to be manufactured in 2014. The penetration rate for the screens in notebooks should rise throughout the year.

But for 2013, it’s possible the oversupply will be three times higher than the 2.3 million square metres actually needed, which could have a domino effect on pricing. The penetration rate is going to sit at a dismal 10 percent for 2013.

The report does not bode well for the Windows 8 touch screen – with little market interest already, one thing Microsoft needs like a hole in the head is pricing problems in the supply chain for Win 8 manufacturers.

KPMG: Retail is recovering

highstreetThe KPMG/Ipsos run Retail Think Tank believes the UK’s retail sector is on the road to improvement and has overall steadied in the second quarter.

Demand increased particularly in the end of June, positively impacting sales of goods. Three key segments, demand, margin and cost, which drive growth, were neutral, with demand slightly increased compared to the first quarter, margins still under some pressure, but with cost factors “largely negligible”.

The RTT’s Retail Health Index was marked at 78 points, one up from the previous quarter and the first successive growth since a continued decline in early 2011.

The group pointed to the arrival of the new governor of the Bank of England, Mark Carney, who said interest rates will stay low and should not mess with economic recovery.

David McCurquodale, head of retail at KMPG UK, said the picture is much brighter than last year.
“Compared to the carnage that occurred in 2012, this year we are seeing a far more settled picture which is a welcome sign for the retail industry,” McCurquodale said. “Certainly, there is less gloom, and expectations that retailers will enter into administration are lower, but for those sitting on large debts, there is still inevitably a risk of insolvency.”

Eventbrite contracts FireText

textingEvents and ticketing firm Eventbrite has brought FireText, an SMS company, on board to send messages to event managers pre and post event.

FireText, the company boasts, is the only UK SMS platform to be working with Eventbrite. It offers cloud based SMS services so users can log into any device to send and manage messages.

Eventbrite hopes FireText will boost user interaction and help hosts manage their events easier. “It means organisers can easily reach people at key moments with the information they need,” partnership manager at Eventbrite, Mitch Colleran, said.

SMS can be a useful way to update guests on special announcements or information as well as confirming other details.

“More and more businesses are realising the importance of effective communication and events are a great example for us,” Firetext’s Dan Parker said.

Vodafone revenues down

vodafoneVodafone’s revenues for the three months ending 30 June plummeted 3.5 percent.

Much of the blame was directed at economic difficulties in Europe. The German market, Vodafone’s largest, dropped 5.1 percent. In the UK revenues fell 4.5 percent. Overall service revenues for Europe declined 14.4 percent – with a serious 10.6 percent and 17.6 percent drop in Spain and Italy respectively.

Chief executive acknowledged blamed weak economies in Southern Europe for restricting revenue growth as well as “regulation” and competitive pressure.

Vodafone last month bought Kabel Deutschland for €7.7 billion – hoping to bolster its position in that market and offer other services like broadband and TV.

Telco analysts at IHS pointed out the Q2 results were at least slightly better than the 4.2 percent decline it suffered in Q4 2012. But it stamped on hopes for growth that emerged the same time last year, where it grew one percent year on year.

Vodafone performed comparably well in India and there is steady sales and subscription growth across the African continent, with Egypt in particular surviving the storm despite ongoing intense political turmoil.

PrePay pops up EE NFC payments

oldmastercardTelco Everything Everywhere (EE) has announced its Cash on Tap service, or NFC payments through a mobile app, and it is largely built by European company PrePay Solutions.

PrePay will be offering e-Money issuing, BIN sponsorship, and transaction processing for Cash on Tap, supported through a proprietary app service that lets the app and NFC phone act as a digital wallet.

Payment options include NFC payments through MasterCard PayPass, online payments with a virtual MasterCard, storing credit and debit card details, loading funds from bank transfer, debit and credit cards, as well as customer balance enquiry and transaction history.

Users will be able to use their mobiles for contactless payments as well.

EE customers will be able to get the app through Google Play, though it only works on a select number of 4G handsets.

PrePay MD Ray Brash said there’s been a lot of anticipation for proper digital mobile payments, and this development makes it a reality for the first time in the UK.

4K to steady global TV market

tv58The worldwide TV market is showing signs that it will return to growth this year after a 2012 shipment shortfall.

FutureSource consulting forecasts that the TV market will grow six percent this year, and continue to grow at a compound annual growth rate of four percent through to 2017 – when it is expected annual shipments will be above 270 million units, with emerging markets accounting for 67 percent of those.

Ultra high definition 4K TV sets are beginning to emerge, and it’s predicted that worldwide shipments for these will grow from 62,000 in 2012 to 780,000 in 2013. They should reach 22 million units in 2017, according to FutureSource, bolstered by an increase in native 4K content and broader consumer appeal around 2015.

Cheaper sets from big Chinese domestic brands are pushing China to the front of the 4K rollout. But most major brands worldwide are expected to begin launching their own 4K TVs this year. North America is tipped to be a big market because of strong demand for enormous screens.

While 3D was an attempt to tackle the glut in flat panels, it didn’t really manage it by itself. 4K sets, according to FutureSource, indicate a natural progression instead, but it will have its own set of challenges.

Producing 4K panels at high yield rates could prove difficult, as well as challenges in delivering content that requires serious bandwidth. Compression improvements from the HEVC codec should help with broadcast.

Brits wary of trusting bosses with data

ukflagMost employees don’t trust their bosses to keep private information private – or even not to use it against them in any way, according to a survey.

But there is confusion about how much information their employers are able to see generally, with 41 percent of respondents thinking bosses are not able to see anything at all on their personal devices. MobileIron and Vision Critical, which ran the survey, warn that in reality, if devices are used for corporate email, it is possible for employers to see their emails and attachments on mobile devices just as easily as on a PC.

Respondents were worried the most about employers being able to access personal email and attachments, texts and personal contacts. This is very unlikely, but it is possibly to see the make, model and OS of a device, the IMEI, phone number, a complete list of apps installed, the device’s location, battery level, storage capacity, corporate email and attachments and corporate contacts.

Employers are unable to see information contained in apps, unless the app has been set up to send information to the corporate server. Personal emails, attachments, texts, photos, videos, voicemails and web browsing activity should all be safe.

But the fact employees are worried about such access shows a certain level of distrust in business. MobileIron says the key to winning over employee trust is clear communication – with respondents saying they would be keen to understand in detail the purpose of seeing device information and how that is separated from work.

However, 20 percent of respondents said they wanted employers to ask for written consent before they were able to access anything on a personal device, and 18 percent would like written notification about exactly what their bosses can and can’t see.

The survey was carried out in the US, the UK and Germany and talked to just shy of 3,000 randomly selected employed adults. Respondent data shows young workers were more savvy about privacy concerns more than any other identifier.

Brits were the most cynical, with 36 percent agreeing there is “nothing” employers can do to increase trust on privacy.

Businesses ignore BYOD best practice

threeiphonesAcronis and the Ponemon Institute have published the results of a joint survey that suggests most businesses are putting their data at risk because they don’t have the correct policies in place.

Most common was a lack of personal device policies – and even among those that did have these policies, executives were exempted, despite the fact they could be handling the most sensitive company data.

A quarter of those surveyed are, the report says, in “denial” about BYOD trends. 23 percent still forbid personal devices from being on the network.

Alarmingly, almost 80 percent of surveyed organisations haven’t bothered to educate their employees on BYOD privacy risks let alone best practice.

Just 18 percent performed remote device wipes when employees moved on from the company. Similarly, 21 percent required a device password or key lock on these devices.

Businesses are also using public cloud services like Dropbox to store and share corporate data, and many don’t have policies in place for public cloud either. Most of the surveyed companies hadn’t trained employees how to properly use public cloud services.

Acronis’ MD for UK&I, Rick Powles, said that while the BYOD trend is an opportunity for companies, many are negligent. “With policies that manage the flow of data between multiple devices and environments, companies can practice safe BYOD with confidence,” Powles said.

Over 4,000 IT managers were surveyed around the world.

Inflation rate approaches three percent

poundsThe Consumer price index (CPI) inflation rate grew to 2.9 percent in June, an increase on May’s 2.7 percent, the Office for National Statistics has announced – approaching the Bank of England’s cut-off point of three percent.

Slower rises in food prices and air fare managed to keep the lid on the inflation rate, which was expected because of increases in clothing and petrol prices from the same time last year.

Prices in clothing and footwear fell by 1.9 percent between May and June 2013 – much less than the 4.2 percent fall the same time lastyear, which was the largest on record. Transport prices rose 0.1 percent between May and June, compared with a fall of 0.5 percent for the same period last year.

Petrol prices rose by 1.0 pence per litre, compared with a 4.3 pence decline last year. Diesel was also up, but air fares fell 2.8 percent compared with a 7.4 percent rise in 2012.

The largest downward effects came from food and non-alcoholic beverages, with prices dropping 0.5 percent compared to a small fall of 0.1 percent last year. Recreation & culture saw prices drop 0.2 percent compared to 0.1 percent the previous year, with the main effect coming from package holidays.

The pound fell three quarters of a cent compared to the dollar at roughly $1.506, the BBC reports.

Berenberg Bank analyst Rob Wood told auntie that inflation is “likely to bobble around three percent for the next few months before heading down towards the two percent target next year, as weak wage growth feeds through to lower costs and inflation”.

But chief economist at the British Chambers of Commerce, David Kern, said there is uncertainty whether inflation will peak before falling later this year, as expected.

“If this happens it is still possible that the recovery will continue to slowly gather momentum throughout the year and into 2014,” he said, adding that unexpected developments like surges in energy prices could push inflation. This would mean “our growth prospects will face new risks”, he said.

The Bank of England’s target is to keep CPI around the two percent mark. If CPI pushes past three percent, governor Mark Carney must speak with chancellor George Osborne.

No qualms for small biz toilet talk

portalooSmall biz owners are increasingly taking important work related calls while sitting on the bog, a company has claimed.

Seven out of 10 micro business owners have taken a business call in the toilet, call answering service Penelope found in a survey.

The main reason for taking the calls is for fear of missing out on new business.

Others said they had taken a call at a funeral and slightly less took a work call at a wedding, CRN reports.

Penelope co-founder Ed Reeves said that responsiveness is critical for small businesses.

“A consumer is unlikely to chase a business to buy something from them, it is far more likely that they will simply call someone else,” Reeves said.