Author: Nick Farrell

Former HP executive chairman red-faced in dock

HPFormer senior suit at the maker of expensive printer ink, Ray Lane, has admitted to a sex discrimination trial that he made a mistake in judgment involving the harassment of a female venture capitalist .

Lane, who previously served as executive chairman of HP and president of Oracle told the court, in the case connected to his former employer, Kleiner Perkins Caufield & Byers, he stuffed up completely.

He should have informed others that Trae Vassallo told him about unwanted advances by her colleague, Ajit Nazre, during a 2011 business trip.

“I made a mistake. It was my mistake. I cared more about her feelings than anything else. I thought it should be her choice whether to tell others at the firm and start an investigation, he said.

Eventually, he would have taken action, but at the time, he suggested to Vassallo that she think it over and discuss it with her husband, in part because he “feared somewhat for her safety”.

The firm did start an investigation after Vassallo told more partners.

Vassallo had complained that Nazre tried to enter her hotel room at night, wearing a bathrobe and, Lane said, holding a glass of wine.

Lane told the court he worried Nazre “could have pushed his way in” and the situation “could have gone in a different direction”.

In the suit, Pao alleges she suffered discrimination and retaliation after Nazre pressured her into an affair in 2006 that she soon ended. The discriminatory conduct eventually spread to other partners, leading her to miss out on a key promotion, she alleges.

After Pao told Lane about the affair in 2007, Lane told her to consider marriage to Nazre, she said in her suit. Lane denied telling Pao to marry Nazre.

Lane said Nazre’s bonus was cut that year as punishment for the affair.

Vassallo, who testified in the case last week, said Lane had told her to be “flattered” by Nazre’s advances.

Lane denied saying that, but an independent investigator hired to look into Nazre’s actions testified that Vassallo had told him Lane did say that, but she believed he was joking.

Huawei dusts off US invasion plans

huawei-liveChinese phone maker Huawei is planning a campaign to win over US consumers, rolling out new mobile phones and wearable devices backed by a marketing effort.

It is a brave move considering that it was only two years ago that the company was branded a spy by US senators who knew at the time that there stance was a case of the kettle calling the pot black.

China’s second-largest smartphone maker, already with more than $40 billion in annual revenue from a wide range of telecom gear and products, is preparing to introduce Americans to several of its smartphones and wearable devices this year, including its youth-oriented “Honor” phone.

Huawei’s US spokesman Bill Plummer said the company’s 2015 US plans will include traditional advertising, online promotion and sports team sponsorships.

He said the company wanted to change its marketing approach to shed its image as a purveyor of cheap technology products.

In December, it touted its new Honor 6 Plus phone on a billboard in New York’s Times Square. Plummer said that was “a sign of things to come”.

He declined to say how much Huawei will spend on its new marketing campaign or what sports team, or teams, it had in mind. In the UK it already sponsors Arsenal, cricket teams in India and rugby clubs in Australia.

At the Mobile World Congress over the weekend in Barcelona, Huawei took the wraps off a smartwatch that will be sold in over 20 countries including the US.

Huawei now intends to appeal directly to consumers with several new phone models, both low end and high end. It hopes to secure deals with carriers, selling online through marketplaces, such as the one operated by Amazon.com, and on its own fledgling gethuawei.com US direct-sales website.
US senators are mostly concerned with Huawei’s networking equipment, but in consumer land, Huawei has a huge problem with brand recognition.

 

LG and Samsung make iWatch screens

Samsung HQ Silicon Valley - MM picLG Display and Samsung Electronics are to supply screens for Apple smartwatches when the shiny toy finally hits the shops.

The Electronic Times reported that LG Display will be the sole supplier of organic light-emitting diode (OLED) screens for the Apple watches that go on sale in April.

Samsung Display will also become a supplier for the next version of the smartwatch that is expected to go on sale either sometime in the second half of this year or early 2016.

No-one is confirming the rumour, but it makes sense and is probably true.

Apple has scheduled a special event on March 9, where it is expected to showcase Apple Watch. To have got this far in the production process, Jobs’ Mob should have sorted out its display supplier months ago.

The watch, which will let consumers check their email, pay for goods at retail stores and monitor personal health information, represents Apple’s only product introduction since the 2010 launch of the iPad.

The watch is likely to sell millions, but only because of the Apple logo. It has been shipped so late and with half of the promised healthcare enhancements dropped, because Jobs’ Mob could not get them to go.

Oracle sues customer for suing

Oracle-Announces-X5Database outfit Oracle found itself in hot water over Oregon’s failed health exchange website and on the receiving end of a law suit complaining about breach of contract, has counter-sued.

Its case does not focus on the fact Oracle could not get the site working, but five former staff and campaign advisers to the state’s former governor, worked behind the scenes to kill the site for political reasons.

Oracle said it might file similar claims against former Governor John Kitzhaber and his former chief of staff, Mike Bonetto.

The new lawsuit by Oracle seeks about $33 million in damages it says the company lost from the fallout over the Cover Oregon program.

The lawsuit claims Kitzhaber’s staffers and advisers, who did not work for Cover Oregon, “improperly influenced” the decision to shutter the site and then blamed Oracle to defuse the political consequences.

Named in the lawsuit are Kitzhaber’s former campaign manager Patricia McCaig, consultants Kevin Looper and Mark Wiener, former business policy director Scott Nelson and former spokesman Tim Raphael.

Oracle argues the website was ready to go before the state decided to switch to the federal exchange in April.

However it claims that going live with the website and providing a means for all Oregonians to sign up for health insurance coverage didn’t match the former Governor’s re-election strategy to ‘go after’ Oracle,”

Oracle spokeswoman Deborah Hellinger said in a statement said that political operatives Patricia McCaig, Kevin Looper, Scott Nelson, Tim Raphael, and Mark Wiener acted in the shadows and took actions to undermine the ability of Oregonians to receive health coverage; create a false narrative blaming Oracle for the state’s failures; and ultimately interfere with Oracle’s business.

It seems that Oracle’s strategy is to say the site worked, when the State said it didn’t, and rely on the fact that Kitzhaber is not exactly popular any more.

Kitzhaber resigned last week after criminal probes into an influence-peddling scandal involving allegations that his fiancée used her position in his office for personal gain.

Foxconn presses for the end of human zoo

foxconn-tvFoxconn has confirmed that it is pressing ahead with its plan to replace its increasingly tricky staff with robots.

After all, robots will always work, and will not get depressed, kill themselves, or moan to western news media that they are being exploited.

CEO Terry Gou who once famously described his staff as animals, and he was the zoo keeper said that in three years, Foxconn will probably use robots and automation to complete 70 percent of its assembly line work.

Previously Gou said he hoped to one day deploy a ”robot army” at the company’s factories, as a way to offset labor costs and improve manufacturing.

This will be great news for Apple, which is Foxconn’s biggest customer, and found that its image was a little tarnished by the fact that its main supplier was installing nets to catch people who threw themselves off buildings.

Labour watchdog groups have complained that Foxconn workers have in the past faced long hours and harsh treatment from management.

Last year, Gou said that the company already had a fully automated factory in the Chinese city of Chengdu that can run 24 hours a day with the lights off.

Gou declined to say more about the factory, or what it produced, but Foxconn has been adding 30,000 industrial robots to its facilities each year, he said in June.

Gou said his company needed to adopt more automation, due to the potential for labor shortages. Young people won’t do this kind of work, and won’t enter the factories, he moaned.

ISIS aiming for social media heads

o-ANONYMOUS-facebookTerrorist outfit the Islamic State has decided to take out the heads of the major social media companies for daring to take on the outfit.

On Sunday, an image circulated showing Islamic State supporters allegedly threatening Jack Dorsey, a founder of Twitter, in retaliation for the social network engaging an escalating war against the militant group.

ISIS relied heavily on American-built social media to provide a megaphone. Lately, however, the networks have fought back and shut down its access.

Now the social media that enabled ISIS to become the most famous terrorists on the planet—Twitter, YouTube, and Facebook is at war against them.

Twitter has gone through numerous waves in which tens of thousands of ISIS accounts have been banned in an attack designed to lessen their influence.

ISIS tried to arrange a cyberprotest in favor of a right to free speech in order to gain the attention of the world.

At noon ET on Feb. 26, the full might of ISIS’s social media operation was supposed to get #IslamicStateMedia and #الحملة_العالمية_لنصرة_الدولة_الإسلامية trending everywhere and squarely in the spotlight.

However it was taken to the cleaners by Kurds and conservative American activists who rhetorically attacked their common enemy so that neither the Arabic- nor English-language campaign had any success whatsoever.

ISIS social media jihadists were outnumbered and outdone during their own highly publicised campaign.

It turned out that Twitter made it impossible for ISIS to win by setting in motion the biggest strike against the Islamic State that social media has yet seen.

Some accounts were suspended three to seven times within one single day. But the incentive of the campaign kept these Islamic State supporters coming back again and again.

ISIS is now spending more time and effort than ever before to maintain their social media.

Apparently they are wanting blood with threats calling for the killing or harming of social media bosses appearing on the accounts they can still use. But it is looking like this is a rear guard action.

Two chip companies in $40 billion merger

shut-up-and-take-my-moneyTwo chip companies have surprised the world by agreeing to merge.

While the tech press focused on Apple’s watch, and non-existent car, NXP Semiconductors, and Freescale Semiconductor hatched out a super-merger in comparative quiet.

TechCrunch’s excuse for its hacks not spotting the mega-merger was because “no-one has heard of the two companies anyway.”

In the interests of educating hacks – Freescale makes embedded chips, the Internet of Things, while NXP is best known for its chips headed for cars. They are both huge and were both expected to get bigger under the trend for mobile and automotive chips.

Under the deal the two companies announced a “definitive agreement” that will see Freescale shareholders pick up 0.3521 NXP shares and $6.26 in cash for each of their current shares.

Freescale made $1.10 billion in revenue, and $63 million in net profit last quarter. NXP is larger, recording $1.537 billion in revenue, and $149 million in net income in the quarter.

Either way, this deal is huge and could put the fear of god into companies that US tech hacks might have heard of, such as Intel and AMD who would really like to get their feet under the table of the embedded market.

Now they are now facing a rival who is not only comfortably been in the market for years, but now is big enough to play the sorts of games that they play in the x86 market.

It looks like the US tech press might have to make themselves a little more familiar with the new outfit – what ever it ends up being called.

Apple copies Intel and drinks milk and honey

Apple's Tim CookFruity cargo cult Apple is set to copy Intel’s success by shifting an ever increasing amount of development work to Israel.

Chief Executive Tim Cook was in Israel on Thursday to visit the company’s new research and development offices in Herzlyia.

Jobs’ Mob also has an R&D center in Haifa, in the country’s north, which is Apple’s second largest research and development hub outside of the US.

Jobs’ Mob recently bought two Israel outfits – Anobit Technologies and PrimeSense which both make microprocessor chip designs.

Apple has also hired most of the Israeli employees of a chip-design division that Texas Instruments decided to shut down in 2013 in Ra’anana, some 10 miles north of Tel Aviv and has been hiring like crazy for its chip design center in Haifa.

On its current jobs posting site for Israel, Apple is advertising for a range of hardware and software positions, including silicon and semiconductor design and testing engineers who will be required to work in labs.

The Wall Street Journal quoted Shlomo Gradman, chairman of the Israeli Semiconductor Club as saying that Apple’s Israeli acquisitions and its expanding local workforce show that the company is becoming more and more independent on the chip level, where it once had to rely on external suppliers.

Cook said in the meeting with Israeli president Reuven Rivlin that Israel and Apple have got much closer together over the last three years than ever before

AMD does not think Chromebooks are worth it

AMD, SunnyvaleAMD chief technical officer Mark Papermaster has dismissed Chromebooks as “not worth it” and explained why his outfit is not behind the technology.

He said that it was important to look at Chromebook and what Google’s grand plan with it is.

“For us, it’s just a business decision, when you need our type of CPU and graphics technology that can make a difference.”

Chromebook sales are tiny. IDC estimated that 4.6 million Chromebooks were sold in 2014, compared to 304 million PCs for the year.

Intel has come to dominate Chromebook sales with Celeron and Atom chips, although some models also feature third-party ARM chips inside.

But Chromebooks are generally considered low-cost productivity machines and AMD is trying to place itself as a graphics and media chipmaker. Carrizo, dedicates four “Excavator” CPU cores against eight Radeon graphics cores and16 percent of the die is dedicated to CPU cores.
“For us, it’s when do you need our CPU and graphics capability that can make a difference,” Papermaster said. “Again, you’ll see that there’s these rock-bottom markets… so those don’t have our value proposition.”

“We play in the whole range of the market. We’ll play in the low-cost value” market, Papermaster added. “You have to at least get paid for that value when you’re working on graphics. You go below that, and you’re looking at $7 chips.”

Intel buying its way into China

Intel Q4_14_ResultsMegachip maker Intel has decided that the only way to get around the inscrutable Chinese is to invest in shed loads of scrute and buy its way into the market.

Intel is pouring billions of dollars into expanding its influence in China, where fewer than half the country’s roughly 500 million mobile phone users have smartphones and the market is ruled by Qualcomm.

Intel is apparently trying to use its relationship with PC clients in China as a foot in the door to mobile devices. It is chummy with Lenovo, the No. 1 global PC seller, and its hardware powers a handful of Lenovo smartphones. It is also mates with Chinese internet giant Tencent, which includes a joint research centre, helps ensure that the WeChat maker’s software works smoothly with Intel chips.

Intel paid $1.5 billion in September for a 20 percent stake in state-run Tsinghua Unigroup, which controls two domestic mobile chipmakers. It did not need to spend that much, in some observers thought that it was double the outfit’s value. In December, Intel said it would pay $1.6 billion to upgrade its factory in the central Chinese city of Chengdu, which cost $300 million to build a decade ago. The plant, designed for back-end testing, will absorb some of the work previously done in a shuttered Costa Rican facility.

That appears to suggest that Chipzilla is shifting a lot of its tech to China. The idea being that it will intergrate itself into the local supply chain and impress the Chinese officials, who are having a few problems with Qualcomm. Intel may be more favorably treated by Chinese regulators because of its stake in Tsinghua Unigroup—as well as its willingness to build high-end local labs. So far, Intel hasn’t been touched in China’s crackdown on foreign companies.

The next battle is believed to be for wearable tech and if Intel has invested in Chinese start-ups it might have a leg-up and a way to make these as cheap as possible.

Google reorganises in EU

330ogleThe search engine also known as Google is restructuring its European businesses to cope with the fact that the EU might want it to be a little more reasonable on privacy and anti-trust issues.

Google merged its two European regional divisions claiming it needed to “meet the challenges of tougher regulation across the continent”,

The internet giant is merging its northern and western European division with the unit covering southern and eastern Europe, Middle East and Africa.

The move will simplify the organisation, both for commercial reasons as well as to work more effectively with business partners and policy makers.

The tax-friendly Dublin will still remain as Google’s Euro-base, and the reorganisation will not result in job losses, the source said.

Google has been given a good kicking by European Commisioners for its tax avoidance antics and tendency towards what the EU considers playing fast and loose on privacy matters.

In response, Google has argued that for Europe to remain competitive in global markets, it needs to form a single digital market instead of relying on national regulations in its 28-member states that often act to protect local industries.

It appears that Google is pinning its hopes on former British Olympic rower Matt Brittin to sort out the mess. Brittin led Google’s northern and western European division and will head up the combined Europe, Middle East and Africa operation while Carlo d’Asaro Biondo, formerly head of the other regional unit, will take on a strategy role.

D’Asaro Biondo is a former media suit who worked for Lagardère, AOL Europe and computer services company Unisys, will continue to work from Paris.

He will manage Google’s strategic partnerships in the region, which include working to deepen ties with newspaper publishers, telecom operators and carmakers.

Brittin has packed his executive bag and headed to Brussels to argue the company’s case that it serves as a growth engine for European business, especially for small and medium-sized enterprises, because the Internet helps create a level playing field. But then again so do monopolies only the bloke owning the level playing field makes a fortune renting it out for others to play on.

IBM wants cloud killing

Clouds in Oxford: pic Mike MageeBig Blue thinks it can restore itself to its former suited glory by pushing heavily into cloud and big data.

Apparently the outfit has set itself a target of making $40 billion a year from cloud, big data, security and other growth areas by 2018.

The target was mentioned at the company’s annual investor meeting in New York yesterday and is the first hint of a serious “cunning plan” since IBM moved away from its previous strongholds in hardware and servers.

The $40 billion will come from areas which IBM calls its “strategic imperatives,” namely cloud, analytics, mobile, social and security software.

That would represent about 44 percent of $90 billion in total revenue that analysts expect from IBM in 2018.

Those businesses generated $25 billion in revenue for IBM last year, or 27 percent of its total $93 billion in sales.

The company said it would shift $4 billion in spending to its “strategic imperatives” this year.

Revenue at IBM has gradually shrunk over the past three years as it sold off its unprofitable units in businesses such as low-end servers, semiconductors and cash registers.

IBM Chief Executive Virginia Rometty has said she was happy to jettison revenue from such unprofitable businesses, which she dubs “empty calories.” Although we would have thought that empty calories would be a good thing, because they would fill you up without meaning you put on weight.

IBM revenue has now fallen for the past 11 quarters, while earnings growth has been sporadic.

The company says its long-term plan is to hit “low single-digit” revenue growth and “high single-digit” growth in operating earnings per share. Last year IBM withdrew its long-term plan to hit $20 per share in operating earnings for 2015.

Things have not been going that well for IBM of late. It gets more than half of its cash from foreign parts, and the strong US dollar has hurt its sales by more than six per cent this year.

RAMNIT sent to the works

12026489_8cfc0bee54A  three million strong botnet which filled the world with phishing emails has been shut down thanks to the efforts of the National Crime Agency’s National Cyber Crime Unit (NCCU), police in the  Netherlands, Italy and Germany.

The shut-down was co-ordinated through Europol’s European Cybercrime Centre (EC3), which also shut down command and control servers used by the RAMNIT botnet.

Investigators believe that RAMNIT may have infected over three million computers worldwide, with around 33,000 of those being in the UK. It has so far largely been used to attempt to take money from bank accounts. Analysis is now taking place on the servers and an investigation is ongoing.

RAMNIT was one of the most prevalent botnets in McAfee Threat reports for some time and Europol was alerted to RAMNIT by Microsoft, after data analysis showed a big increase in infections.

Steve Pye from the NCA’s National Cyber Crime Unit said: “Through this operation, we are disrupting a cyber crime threat which has left thousands of ordinary computer users in the UK at risk of having their privacy and personal information compromised.”

“This malware effectively gives criminals a back door so they can take control of your computer, access your images, passwords or personal data and even use it to circulate further spam messages or launch illegal attacks on other websites. As a result of this action, the UK is safer from RAMNIT, but it is important that individuals take action now to disinfect their machines, and protect their personal information,” Pye said.

 

Microsoft gives kids a cloud

Clouds in Oxford: pic Mike MageeAs part of its push to dominate the cloud, software giant Microsoft is giving away free Office 365 subscriptions to students outside the US.

Schools will have to buy subscriptions for staff and faculty, but once they do, students  – and even teachers – can self-install for no charge by using a school-issued email address at the Office in education website.

This will give Microsoft a huge customer base for its products, after signing up, kids will get access to the newest Office, Excel, PowerPoint, OneNote, Access and Publisher, and be able to install them on up to five computers and five phones or tablets.

An account also comes with Office Online and a 1TB of OneDrive storage.

The move could totally kill off moves by Google to get its cloud storage system into schools, or for that matter Apple’s push to get its expensive tablets into the education market.

The advantage of Microsoft giving away the software to school kids is that it instils a generation with training on its software which will be carried over to business decisions made later in life.

In the US, Apple and Google have been making inroads into the schools market, based on marketing in Apple’s case and cheaper software in Google’s.

US tech economy suffering because of paranoia

Senator McCarthy On 'Face The Nation'The US economy is officially suffering because its government is not reigning in its paranoid security services.

One of the world’s biggest markets, China, has said that it is no longer using high-profile US technology brands for state buys, amid ongoing revelations about mass surveillance and hacking by the US government.

That means that key brands, including Cisco, Intel, Apple and McAfee — among others — have been dropped from the Chinese government’s list of authorised brands.

The number of approved foreign technology brands fell by a third, based on an analysis of the procurement list. Less than half of those companies with security products remain on the list.

Chinese companies were said to offer “more product guarantees” than overseas rivals. Some claim it has cost the US government many billions of dollars figure on the impact of the leaks.

US companies have been moaning that the activities by the NSA are harming their businesses in crucial growth markets, including China. However, the US government has claimed that its aggressive spying plan meant that Americans were safer and spying on everyone was the only way to catch terrorists.

This included backdoors being placed in US products sold overseas. Those revelations sparked a change in Chinese policy by forcing Western technology companies to hand over their source code for inspection. That led to an outcry in the capital by politicians who accused Chinese companies of doing exactly the same thing, when they hadn’t.

Microsoft said its fourth-quarter earnings that China “fell short” of its expectations, which chief executive Satya Nadella described as a “set of geopolitical issues” that the company was working through.

HP said its fiscal first-quarter earnings had “execution issues” in China thanks to the “tough market” with increasing competition from the local vendors approved by the Chinese government.

However Cisco has been suffering the most. Earlier this month at its fiscal second-quarter earnings, the networking giant said it lost 19 percent of its revenue in China, amid claims the NSA was installing backdoors and implants on its routers in transit.