However, according to Clare Barclay, director of SMB at the company, two years later resellers are embracing market changes.
“Traditional resellers are in a competitive market with younger companies evolving far quicker,” she told ChannelEye. “Two years ago they put Cloud down to just a hype and continued with their business as it was. However, they are now changing.”
Microsoft believes cloud has changed the way resellers and the market operates, eliminating the need for cumbersome software and hardware. Savvy SMBs have also set up their business using this technology to make them appear bigger and offer their customers more services.
“Most SMBs have now realised that they need to capitalise on cloud, and offer services that put them in a position with their competitors,” said Barclay.
She also pointed out that Office 365 was enabling the company’s partners to offer more services to their customers.
“Three to four years ago customers were worried about buying into a cloud based model but now this is aggressively growing we’re seeing a number of partner engaging in monthly based subscriptions,” she said.
Microsoft said it is trying to seduce resellers into cloud confidence by offering training and events programmes to outline the benefits.
Coincidentally the distie has has now decided to show off the recently announced SMART Room System, a turnkey hardware system designed by SMART Technologies to bring Microsoft Lync into the meeting room at this year’s UC Expo at London Olympia on 5-6 March.
First launched at the Microsoft Lync conference last week in San Diego, this is claimed to be the first time that the service will be shown in Europe.
Steljes has also joined forces with Microsoft to discuss how clients can get the most out of their investment in Microsoft Lync and visual collaboration services from SMART Technologies.
The seminar will be presented by Wayne Perkins, Head of Business Solutions, Steljes & Nick Combellack, Lync Technical Specialist, Microsoft in the Microsoft UC Theatre on Tuesday 5th March at 11.50.
Microsoft’s channel partners will be greatly relieved to discover they will no longer have to explain to corporate clients why they can’t have the latest Internet Explorer, even after they upgraded to Windows 7.
Redmond, in a desperate attempt to push Windows 8, delayed the release of its new Internet Explorer 10 so that it did not run on Windows 7, even though that is mostly what corporate customers are upgrading to at the moment.
Corporations usually run a generation behind on operating systems and the system has been compounded by many of them hanging on to Windows XP and ignoring Vista.
But IE 10 also has some important security improvements and is an all-round better browser with better access for things like HTML5 functionality and do not track functions. It also plays nicer with web standards and fits into 30 that were not adopted in IE9.
Like IE10 for Windows 8 and Windows RT, IE10 for Windows 7 is optimised for touch, which will be largely seen as pretty pointless for corporations. However unlike the Windows 8 and Windows RT versions, IE10 for Windows 7 places the URL bar at the top of the screen, not the bottom.
More from Microsoft here.
That’s the latest from IT market research company Context, which has said that this could lie in the fact that at the October Windows 8 launch last year, there was no significant support from leading hardware vendors for touch screens in portable PCs.
It added that at the time only 1.1 percent of all the Windows 8 portable PCs selling through distribution at the time of the launch were touch screen-enabled. By the end of January this year, this had only risen to 2.4 percent, while tablet sales had increased “significantly” over the same period.
However, the momentum is still upbeat with hardware vendors surveyed by Context claiming that they are anticipating some uptake in sales of touch screen enabled portable PCs by the third quarter of 2013 in time for the end of year holiday season.
The company warned that with the price of 15-inch and higher touch screens still expensive, making the portables a high-priced item, the cheaper tablets could potentially dampen touch screen sales.
The company, which, over the past year has brought out a range of new products for both consumers and business, is now trying to win over resellers in the lead up to the launch of Office 365 for the commercial space.
“Last July we called the upcoming year a new wave for Microsoft,” Janet Gibbons, director of partner strategy and programme, told ChannelEye. “Not only was this because of the range of products, including Windows 8, that were launched but also the migration to the cloud.”
She said Office 365 had spearheaded this message with the home version for the first time offering a household licence for up to five devices, including Macs and tablets.
“This was a new way of consuming software,” Ms Gibbons added. “It shows how we’re going to be taking products to market.”
Microsoft says it is doing as much as it can to ensure its partners are ready for the commercial launch of Office 365, on the 27 of this month.
It has also changed the way its resellers can bill clients for the product, meaning that from 1 March resellers will be able to bill customers directly.
The current model for reselling Office 365 sees partners receive kick-back payments for what they sell, with Microsoft controlling billing. However, now resellers will be able to set their own margins and bill customers themselves.
“From a channel perspective we have advised our partners ahead of the launch so they in turn can help their customers,” Gibbons told ChannelEye. “We’re scaling this through distribution channels to target 7,500 partners, offering training and face to face meetings.”
The company has also embarked on licensing training through December to Feb, putting on a two day event targeting 1,700 partners.
This covers other products relevant to resellers including Sharepoint and Link.
“We’re aiming to catch the market when the market is ready for new changes,” Ms Gibbons said. “From what our resellers tell us, their clients are ready.”
Aussie MP Ed Husic moaned to the Australian that by some estimates, prices for Australia can be 60 percent more than in the States. He and the committee will be putting Apple, Microsoft and Adobe on 22 March, according to the BBC. Although the firms have replied in writing, until now they have not bothered to meet any representatives in person.
Although price differences aren’t as drastic in the USA and the UK, there is still a gap – with the only difference usually being in pound sterling rather than the dollar. Depending on what action the committee takes, there is the potential to set the bar on international price differences, and whether they should be altered in line with currency values.
Husic told the Australian that, considering IT is so widely used in both business and consumer segments, prices for hardware and software can “have a major commercial and economic impact”. He said that bringing IT prices down and “easing the bite of price discrimination” should be an “important micro-economic priority”. Of course, convincing conglomerates that tinkering with their margins is a good idea will be easier said than done.
The bigger picture, however, will be that if pricing is more competitive, consumers and businesses won’t hesitates as much to buy – even in challenging economic conditions.
With Pope Benedict announcing that he is cleaning out his desk and collecting his pink slip, Channel Eye has come up with a list of those who it thinks will have the right stuff to be the next Pope. Now we know that one of the jobs of the Pope is to be Catholic, but given that the church is unlikely to survive another 100 years unless it liberals up a bit, we have given our nominations on the basis that if they can run an IT company they can probably look after the world’s largest religious organisation.
1. Steve Ballmer
Ballmer is already half way to the job by having the inner certainty that he is God. Ballmer would sort out most of the Catholic church’s problems by shouting at them until they go away. Pope Ballmer would probably encourage cardinals to make all sorts of power plays so long as they left him alone. We predict that under his rule, the Catholic church would adopt wide scale contraception to avoid another Ballmer.
2. Sir William Gates
Since resigning from Microsoft’s top job, Gates has been heading towards sainthood. Not only is he well on the way of purging Africa from the devilish mosquito, his various charity work is now healing the sick of Polio. If he were appointed Pope, Gates would closely monitor other religions and then try to mimic their success.
3. Steve Jobs
A tricky choice for the church given that he is already dead, however, that has not stopped him being the head of the world’s fastest growing religion. Chances are that thanks to Apple technology he could do the job from the afterlife, all it would take is to replace all those videos of him with an iPad so that he appears to be holding a bible. We predict that under the rule of Jobs, which would be eternal, you would have to pay half of your salary to the church every year and queue to get into the sermons.
4. Leo Apotheker
A bit ofan outsider but given that Cardinal Ratzinger was a similar figure within the Catholic church, and it is known for being fairly conservative, we think he could be a starter. Pope Apotheker would start by selling off all the churches and training all priests so that they could handle business management software, like SAP. While many people will not understand why the Catholic Church should dump everything it makes money on and moving into business software, Apotheker would point out that this was exactly the same plan he would have run for HP if those pesky board members had not been involved.
5. Michael Dell
Although he might be a little busy for the job, Michael Dell will abandon all the churches and tell his priests to take their services directly to parishioners. However, if this plan starts to go wrong, he will do a deal with Microsoft to buy out the Church from its Mafia backers and make himself the supreme pontiff and not have to answer to anyone.
6. Paul Otellini
Paul Otellini is retiring soon so might be up for the job, as he is a big fan of monopolies and will probably rule the Catholic Church in the same way as he did at Intel. This would involve leaning on the supplies of other religions and advising them to follow the Roman Catholic Church. Then the other religions would go broke and collapse. In some cases, where they had interesting theology, Intel might buy up their patents and incorporate them into Catholic theology.
Microsoft’s tablet push seems to have hit yet another snag. The first reviews of Redmond’s new Surface Pro tablet are in and they are not good at all.
Envisioned as business friendly tablet with unparalleled legacy compatibility, the Surface Pro was supposed to challenge the iPad and high-end Android tablets by wooing traditionally conservative corporate customers to embrace a tried and tested platform, more or less.
At least that was the idea and on paper everything seemed right. The Surface Pro is powered by a proper x86 chip and it runs Windows 8, ensuring compatibility with legacy applications. It also has a full HD screen, physical keyboard and a pretty high price tag, which should be justified by its unique feature set. However, reviewers gave the Pro no quarter.
The Verge reckons it is still a better choice than the Surface RT, which really isn’t saying much since the RT doesn’t appear to be a good choice at all. However, consumers can get a decked out hybrid for about the same money, which led The Verge to put forth a simple question: who is it for? Oddly enough, the Apple loving New York Times was a bit more lenient, concluding that the Surface Pro could be the right machine for a lot of people.
“It strikes a spot on the size/weight/speed/software spectrum that no machine has ever struck. You can use this thing on a restaurant table without looking obnoxious (much),” wrote NYT’s David Pogue.
AllThingsD was not impressed, concluding that the Pro is too power hungry and too difficult to use in your lap. “It’s something of a tweener — a compromised tablet and a compromised laptop.”
Engadget’s Tim Stevens tried to be a bit more positive, but it soon ran out of kind things to say. “When trying to be productive, we wished we had a proper laptop and, when relaxing on the couch, we wished we had a more finger-friendly desktop interface,” he wrote.
Business Insider was blunt as usual, saying the Pro is just like the RT version, only heavier, thicker, more expensive and with half the battery life. “It looks like a tablet, but you can snap on an optional (but essential) keyboard cover that turns the Surface Pro into a pseudo-laptop. So why would anyone buy that?”
So what exactly was the Surface Pro’s undoing? Quite a few of things apparently, but most of them are not restricted to the Surface Pro – they apply to all upcoming Windows 8 tablets. On the hardware side all appears well, but vendors have to use power hungry x86 chips in all Windows 8 tablets, rather than frugal ARM SoCs employed by Apple and the Android alliance. The OS itself is bloated, hence a lot of speedy solid state storage is required to come up with a feasible Windows 8 tablet. Android and iOS are a lot leaner. Less efficiency also translates into limited battery life and bigger batteries, increasing production costs and bulk. Modern Android tablets and the iPad mini measure just seven to eight millimeters at the waistline and no Windows 8 tablet can come close to that yet.
Still, legacy app compatibility and unbeatable productivity features could easily outweigh the drawbacks? Well they could, in 2009. Countless developers have spent long hours working on productivity apps for iOS and Android over the past three years, so Redmond’s productivity edge has been blunted. BYOD is another trend that is forcing companies to rethink their approach and embrace cross-platform software solutions.
As far as legacy apps go, Windows 8 tablets seem like the obvious choice, but there are a few caveats. Windows 8 still lacks native, touch friendly apps. Most legacy apps can’t handle touchscreens very well, which means the traditional keyboard and touchpad combo is a must. With that in mind, there is no good reason for those in need of legacy support to get a tablet, as an Ultrabook or hybrid will do just fine.
Windows 8 tablets were cleverly marketed as a natural extension of ultraportable notebook lineups, so many vendors were (and still are) a lot more interested in Windows 8 tablets rather than Windows RT gear. Between Surface RT’s slow sales and the unflattering Surface Pro reviews, Redmond’s tablet strategy seems to be imploding faster than a North Korean uranium warhead.
Microsoft lowered Windows Azure price on SQL Reporting Services, which is used for business intelligence-type applications.
The SQL Reporting Service is now measured at increments of 30 reports at $0.16 per hour. The previous charge was measured at $0.88 per hour in increments of 200 reports.
Writing in its bog Vole claims that “the smaller report increment will give customers better use of the service and lower effective price points”.
Like most of the postings that Microsoft has made on its cloud offerings this one is as clear as mud. That is one of the things that resellers have been moaning about when it comes to Azure. The licensing arrangements are so Byzantine you have to be Constantine the Great to understand how they all work.
Customers have to pay for the compute time, data storage and data access and the bandwidth of the data transferred out of the cloud. Those various services get priced per GB. Then there is a monthly fee rolled into the overall cost if an organization uses SQL Azure.
To make matters worse, at the end of last year, Vole started reducing the price for Windows Azure Storage (WAS), claiming that costs could be reduced by 28 percent. WAS offers geo-replication storage support, as well as lower cost “redundant storage”. The geo-replication storage service is turned on by default.
However according to RPC magazine the service cannot be that good because when there was a two-day Windows Azure service disruption in December, Vole did not bother using it. If it had, Microsoft would have lost customer data.
Microsoft is apparently planning a few price more cuts which look even more complex as they are discounts based on spending tiers.
All this is because of the effectiveness of Amazon, particularly Amazon Elastic Cloud Compute (EC2) and Amazon Web Services (AWS). Amazon cut data transfer prices by as much as 83 percent. In addition, Amazon decreased some EC2 on-demand prices by up to 13 percent.
All up this is making the life of the reseller trying to sell Azure based offerings a little harder. Price cuts would make things a lot more competitive, if the original pricing structure was not so complex. Trying to sell such a complex structure to a client is a tough sell, particularly when the customer does not know what they are getting into.
Shareholders of Dell stock will receive $13.65 per share, when the transaction concludes. That’s a premium of Dell’s share price of $10.88, which was its closing price before rumours of the sale started to surface.
The board of Dell, which includes Michael Dell himself, unanimously approved the merger agreement with Michael Dell and Silver Lake Partners taking the company private.
Dell Inc has appointed a special committee to evaluate alternative proposals in a so-called go-shop period of 45 days.
Michael Dell said he thought the move was an “exciting new chapter for Dell” and its customers. He said he has put a “substantial amount” of his own capital at risk together with Silver Lake.
After the transaction is completed, Michael Dell will continue as chairman and chief executive officer. Parties affiliated with Silver Lake include Microsoft, Merrill Lynch, Barclays, Credit Suisse and others.
Microsoft’s Surface RT tablet rollout came and went without much fanfare. Although Redmond’s first crack at the tablet market received relatively positive reviews, consumers seem unfazed and many of them are choosing to trade in their new tablets.
But Samsung effectively doubled its market share in the last quarter of 2012, according to IDC. The Galaxy tablets sold nearly eight million units representing a market share of 2.2 million.
Apple, on the other hand, has seen its market share slip from 51.7 percent to 43.6 percent, although it sold more units.
IDC said that the last quarter of 2012 saw worldwide sales of tablets rise to 52.5 million units, a rise of 75 percent.
It’s not a direct correlation, but PC shipments fell in the last quarter of 2012. But even though Microsoft introduced the Surface tablet towards the end of last year, it only sold 900,000 units. The price of the Surface is hurting sales, IDC believes.
The comments follow a survey of 320 graduates from CWJobs, which found that those who had completed a placement year had been better prepared to enter the world of work when they had finished their degree.
A quarter of those asked said they had completed a placement while studying for their degrees. Of these, 81 percent said they felt the experience had helped them when it came to their IT career.
Just under half of students who had not completed a placement year admitted that they did not feel that just having a degree better placed them for the world of work.
According to recruitment firm Experis, and IT jobs site CWJobs.com, which jointly conducted the research, employers often look for students who had completed relevant work experience.
However, they pointed out that of the 2,048 computing courses offered in the UK, only 470 offer a placement year.
According to a work experience expert, many students who don’t have the option of a sandwich course will fail to find a placement during their time at university.
“At university level things change slightly from school age where it is down to each borough to place a 16 year old in a work experience placement”, she told ChannelEye. “At degree level, it’s no longer down to the government to place students, which in some ways, considering the tuition fee hike is unfair.
“It means that on top of their workload students are put under pressure- with probably minimal help from their tutors, to find placements to accompany their course. There may be companies who are signed up with the course but the competition is rife.”
There are financial costs involved too.
An article in the Guardian last year suggested that some universities can charge up to around £4,500 for sandwich years, while businesses are also reluctant to become a part of this scheme as they don’t have the time to supervise these students.
“Placements are very important, but for some, the time and effort associated with these put students off and, as we’ve seen from this research could prove detrimental in the future,” the work experience expert added.
Meanwhile, the Chartered Institute for IT announced that it is launching a teacher training scholarship aimed at creating the next generation of computer science teachers.
The organisation wants secondary schools to “have outstanding computer science teachers” and it hopes the scholarships will help towards achieving this.
The scheme also aims to help students receive a good grounding in computer science education so they are suitably equipped for progression into further education and a professional career.
A Department for Education spokesperson said: “We need to bring computational thinking into our schools. Having Computer Science in the EBacc (English Baccalaureate) will have a big impact on schools over the next decade.
“It will mean millions of children learning to write computer code so they are active creators and controllers of technology instead of just being passive users. It will be great for education, great for the economy, and will help restore the spirit of Alan Turing and make Britain a world leader again.”
Fifty scholarships per year, each worth £20,000, will be awarded for those engaged in an initial teacher training course, with the funding supplied by the Department for Education.
The scheme will also be backed by the likes of Microsoft, Google, IBM, BT, Facebook, Meta Switch Networks and Ocado.
Consumer behemoth Apple reported its first quarter financial results yesterday and while it posted revenues of $54.5 billion and a net profit of $13.1 billion, compared to revenues of $46.3 billion and profits of $13.1 billion in the same financial quarter last year, profits were flat.
Gross margin fell to 38.6 percent compared to 44.7 percent in the same quarter last year. Apple is forecasting gross margins between 37.5 percent and 38.5 percent for its second quarter, with estimated revenues between $41 billion and $43 billion.
So, what’s the problem? CEO Tim Cook said that supply problems were a matter to be concerned about, despite media reports. And Apple has got a stash of cash in its corporate coffers – not far short of $137 billion in both liquid ashes and in cash. That gives it a pot of gold that would let it buy other companies to make a splash in new or other developing markets.
A bigger problem is its existing slew of products, including the wildly successful iPad and the solidly popular iPhone. It does face a challenge on the tablet front – particularly so from Google and Amazon devices. Microsoft Windows 8 using Intel chips may not be so much of a challenge. Intel cannot necessarily lower the price of its microprocessors, given its business model and Microsoft appears to believe that tablet devices running the touch version of Windows 8 should command the same prices as Apple iPads, or be even more expensive.
Apple’s share price (AAPL: Nasdaq), stood at $460.15 at press time.