All roads lead to Chrome – at least in schools

chromebookPeople mocked when Google’s high-priced Chromebook Pixel laptop was released. 

After all who would buy a $999 Chromebook Pixel 2 which seemed to do most of its work on the internet running lite services like Google Docs and Facebook but not traditional PC software like Microsoft Office and Adobe Photoshop.

The Dell Chromebook 13 starts at $399 for a laptop with a metal exterior, carbon fibre cover, 13-inch 1,920×1,080 screen, Intel Celeron processor, 2 gigabytes of memory and 16GB of storage. Prices range up to $899 for models with touch screens.

However it did rather well and Dell was so impressed that it designed a much cheaper version of its own.

Google’s Rajen Sheth told CNet the schools market was driving a move to Chromebooks.

They accounted for 8.1 percent of portable computer shipments in the first quarter of 2015 in the United States. That figure is predicted to rise to 10.6 percent for the full year and rise further to 12.4 percent for 2016.

Schools like Chromebooks because the hardware is cheap and teachers can control what they provide to the kids and restrict what kids can access.

Chromebooks have low management costs and are centrally managed so teachers don’t waste time handling tech support, he said.

The devices are easily shared, with students’ data and settings stored in the cloud and retrieved when they log in. And Google Apps for Education, free to schools and now with more than 45 million students using it daily, offers low-cost software for word processing, email, file sharing, presentations and chatting.

Now, Google hopes to push Chrome OS more into businesses, too. The low purchasing and management costs are a big part of the sales pitch there, too.

“There are 4 billion working adults in the world, but only about 750 million PCs,” Sheth said. “With the Chromebook, companies are able to expand the population of users who have access to those devices.”

There is “no reason to believe” in tablets

Dodo-birdTablets have gone the way of the Dodo and the hula hoop according to bean counters at Canalys.

The analyst said that in Q2 of this year, global shipments slumped 11 percent annually to 42.5 million units. Shipments in all global regions fell annually in the quarter, and the outlook for the months ahead is not positive.

There is “no reason to believe that growth will return in the short term,” the analyst said.

The market has been killed off by a move to large-screen mobiles and the fact that larger devices will have to compete against a range of two-in-one devices optimised for Windows 10.

Canalys’ senior analyst Tim Coulling insists that the market may not be dead, but might just be resting. He suggests nailing it to its perch in case it goes Vrooom.

“Despite the sudden downturn in shipments, tablets are certainly here to stay,” he said. “Yes, they have matured and commoditised quickly, but there are still opportunities for vendors to profit from the category.

“Unlike consumers, businesses have been slow when it comes to mass adoption of tablets. They are willing to spend more on products that satisfy a specific need and meet key requirements, around durability for example. In the consumer space, demand for premium tablets in established markets has noticeably slowed but is not going to disappear.”

Amazon kills off pay-per-click advertising programme

amazonAmazon has pulled the plug on a pay-per-click advertising programme that allowed businesses to divert traffic from the retailer’s platform to their own websites.

The programme allowed businesses that were not sellers on Amazon’s online marketplace to buy ad space on the website. Targeted ads for specific items would pop up on Amazon’s website and drive shoppers to the retailer or manufacturer’s own site.

Scot Wingo, the executive chairman of ChannelAdvisor told Reuters that customers liked it because it provided a middle ground of being able to partner with Amazon but also not allowing them to see all their transaction data.

Wingo said the programme was known for its high conversion rate and said advertisers were surprised when they received an email from Amazon notifying them of the change this week.

An Amazon spokeswoman confirmed the change and said the advertising programme will no longer be available after  October.

Amazon offers other advertising options for third-party sellers to differentiate their products like its sponsored ads program.

Angela Hsu, vice president of Internet business and marketing at Lamps Plus, a home decor company that used the product ads programme told Reuters she was disappointed.

The company was featured in an Amazon case study in May and said the programme increased its sales by more than 80 percent.

People are increasingly starting their product searches on e-commerce marketplaces such as Amazon before looking on an individual retailer’s website.

 

Adobe and PageFair moan about adblocking

StoneWall-1Ad-blocking will lead to almost $22 billion of lost advertising revenue this year, according to a  report put together by Adobe and PageFair.

For those who came in late, PageFair is a Dublin-based start-up that helps companies and advertisers recoup some of this lost revenue.

If the pair’s figures are right, then the use of adblocking software has increased by 41 percent during the last year. Levels of ad-blocking activity now top more than a third of all internet users in some countries, particularly in Europe, the report said.

Gaming, social network and other tech-related websites were most affected by ad-blocking software, the report added.

While companies spend billions of dollars each year on these internet marketing efforts, analysts say people often overlook them while looking at online content.

Campbell Foster, director of product marketing at Adobe, said that what was causing grave concern for broadcasters and advertisers is video advertising, which is some of their most valuable content, is starting to be blocked. Whoopee, Campbell.

Almost 200 million people worldwide now regularly use ad-blocking software, the report said. About 45 million of them are in the United States, with almost 15 percent of people in states like New York and California relying on these services. The figures are even higher in Europe, where 77 million people use versions of the software. In Poland, more than a third of people regularly block online ads.

Recently, the focus on ad-blocking software has turned to mobile devices. Smartphones and other internet-connected devices are driving breakneck internet use, particularly in emerging markets, and the latest version of Apple’s mobile operating system will allow people to download some form of ad-blocking software.

Currently, only a small fraction of ad-blocking comes from mobile devices, according to the Adobe/PageFair report. But analysts say developers are working on plug-ins for smartphone Web browsers that will allow people to block advertising on their mobiles and tablets.

 

Carphone Warehouse snuffled by watchdog over hack

watchdogThe UK’s data watchdog is “making inquiries” after Carphone Warehouse admitted that personal details of up to 2.4 million of its customers may have been accessed in a cyber-attack.

The attack was discovered on Wednesday, and made public on Saturday.
The encrypted credit card details of up to 90,000 people may have been accessed, the mobile phone firm said.

The Information Commissioner’s Office, which examines data breaches, confirmed it was aware of the incident.

Carphone Warehouse says the data could include names, addresses, dates of birth and bank details and it is contacting all those affected.

Carphone Warehouse claims it was the victim of a “sophisticated” cyber-attack, which was stopped “straight away” after it was discovered on Wednesday.

The affected division of the company operates the websites OneStopPhoneShop.com, e2save.com and Mobiles.co.uk, and provides services to iD Mobile, TalkTalk Mobile, Talk Mobile and some Carphone Warehouse customers.

The retailer’s owner, Dixons Carphone, has apologised for the attack and said additional security measures have been brought in. It has also taken the affected websites down.

The Information Commissioner will work out if Carphone Warehouse had done enough to protect customer data from hackers.

A spokesman for the Information Commissioner’s Office said: “We have been made aware of an incident at Carphone Warehouse and are making enquiries.”

The Metropolitan Police said its Cyber Crime Unit had been notified of the breach by Carphone Warehouse but no formal allegation of a crime had been made.

The Met said it had not had any reports of fraudulent banking activity.

Cisco redesigns its UK channel

Cisco Kid Cisco is making changes to its UK channel infrastructure and bringing all its partner teams together.

Writing in his bog, managing director of commercial & partner sales in the UK, Richard Roberts, said the changes were part of the rapidly evolving marketplace.

“All elements of our Partner team will be brought together in one organisation to drive synergies and focus, The Commercial team will also be consolidated into a single, focused, centre of sales excellence.”

Angela Whitty is taking over the UK Partner organisation. She has been working with Cisco’s UK&I Services business for almost two decades.

The current director of UKI partner and commercial sales, Sean Collins, has joined Roberts’ team to focus only on UK commercial customers.

“Sean’s team will be totally focused upon further quickening our growth in this critical market alongside our Partners,” he wrote.

Adam Grennan the country leader for Ireland, will be brought into the UK fold.

Cisco has been cutting staff. More than 400 employees from its Nexus 7000 data centre have gone and there are rumours that half the staff at Ubiquisys may be axed, and there are now rumours the Intucell acquisition may be facing an uncertain future

 

Facebook wants to be a business tool

thumb-mark-zuckerberg-facebook-pro-4566The social notworking site Facebook has decided that its users really want to talk to businesses through its site.

Facebook rolled out features yesterday that let  businesses privately communicate with customers through messages as the Messenger app.

Businesses can now include a “send message” button in ads that appear in Newsfeed that allow Facebook users to click a button and send messages, which are private. If users post a comment on a business’ Facebook page, then the business can privately message that person

The features are part of Facebook’s efforts to convince more small and medium-sized businesses – especially those in emerging markets, such as India, Brazil and Indonesia – to advertise on its platform.

By giving them direct access to customers, the world’s largest social network hopes to show that advertising on Facebook directly leads to increased sales.

To encourage quick responses, Facebook will award “very responsive to messages” badges on business pages that respond to 90 percent of messages and respond on average within five minutes. People will, however, still be able to block private messages from businesses.

The features will be especially valuable in Southeast Asia, Facebook wrote in a blog post. About twice as many Thai and Singaporean users use Facebook messages to communicate with businesses each month and most Southeast Asia users follow some company pages.

Facebook hosts more than 40 million active small and medium business pages, it said, with more than 1 billion page visits each month.

 

Epson abandons expensive printer ink rip-off model

history-of-print-16th-century-printing-companyAfter decades of flogging cheap printers that have expensive ink cartridges, Epson is coming up with a different business model.

From September the outfit will offer a new line of consumer printers in the US, each with enough ink to print at least 4,000 documents. When the well finally runs dry, customers can fill it with a bottle.

John Lang, Epson’s chief executive officer for North America, said the move is good news for the consumer.

“That anxiety and that fear of running out of ink—it’s amazing to me that that was so prevalent.”

Epson’s home and small business models come with enough ink to rip off only 220 or so documents. What’s more, they don’t play nice with third party cartridges, and the whole range of colours needs replacing when one runs dry.

The strategy of having a low initial price for the unit does a nice job of hooking consumers and the model provides a consistent and predictable stream of profit. The only real problem is that customers hate it with a passion normally only reserved for serial killers of children.

For years, Epson grappled with a number of large class actions from customers who noticed their cartridges still had ink in them when the printer demanded they be replaced. Epson argued that the reserve was needed to make a smooth transition, but in 2006 it settled the grievances, awarding customers a $45 credit per printer.

Now Epson plans to make its money on the front end. The cheapest of its five new printers starts at about $379, compared with the $60 required to get Epson’s current no frills model. And the company’s hoping to benefit from being the first mover on this front.

Lang thinks that in a few years, one quarter of printer revenue will be flowing into giant inkwell models, although it will continue to offer machines that take cartridges as well.

Lang, the Epson chief, says the company didn’t offer inkwell units sooner because it was afraid people would balk at the higher initial price. But actually Epson has been flogging similar versions for years in Asia and South America, territories where ink pirates are particularly aggressive.

Business process management. Who needs it?

snake oilMarket research company Gartner appears to believe that every company in the known cosmos is gagging for business process management (BPM).

To that end, it is going to tell people between September the 9th and September the 11th all about how BPM works at the Gaylord convention centre in National Harbor, MD.

So what is BPM? Gartner believes it is all about improving things for your business to bring high performance results. Gartner thinks its four tracks that feature sessions from analysts, problem solving workshops and “peer interaction” will help businesswomen and businessmen that much better.

But a keynote about “Digital Humanism” delivered by Brian Prentice, catches our attention, if only because its sub title is “Swinging the pendulum of digital business”. This sounds more like Kant than cant.

Gartner is also pulling in Michael Massimino, a NASA astronaut, to give “views from space” about obstacles and challenges that business faces.

Keith Ferrazzi, the author of Who’s Got Your Back and Never Eat Alone will probably be joining you for lunch so you never eat alone.

It’s all very compelling stuff.

Notebook ODMs fleeing to the cloud

cloudbustThere could be a drastic cut back in the number of notebooks on the market.

Word in from the Far East is that  notebook ODMs, such as Quanta and Compal, have been expanding staff specifically for servers used in cloud computing data centres, their component suppliers, including thermal modules, power supplies and metal stamping, have also extended related production.

It seems likely that the manufacturers have had a gutsful of making PCs that no one wants and are seeing the future as being cloudy.

Intel’s datacentre business units had 10% growth in second-quarter revenues, while profits from the business also surpassed those of its PC business, making the datacentre centre business the CPU giant’s new main profit contributor. The trend also triggered upstream supply chains to start turning their focuses to the segment.

Choung Technology said that more than 40 per cent  of its revenues contributed by server-related products. CCI ships about eight million thermal modules for servers each year, and is supplying to clients including HP, Dell, and Quanta.

Furukawa Electric also stuck its foot in the door supplying Google and Microsoft to supply products for their datacentres. The company also started sending samples to Facebook and Amazon recently, looking to expand into their supply chains.

Quanta’s server team has about 1,000 employees and is focusing mainly on the integration between software and hardware. By the end of 2015, Quanta is looking to double the team’s personnel and will continue to recruit more talent in 2016.

Notebook makers get into servers

server-racksFed up with losing money in a shrinking PC market, notebook OEMs are getting into servers and datacentre hardware.

According to DigitimesQuanta and Compal have been hiring staff specifically to create hardware for servers used in cloud computing data centres and their component suppliers. Apparently thermal modules, power supplies and metal stamping, have also extended related production makes a mile of cash.

The role model for the move is Intel, which saw its datacentre business units grow by 10 percent while profits from the business also surpassed its PC business.

The trend also triggered upstream supply chains to start turning their focuses to the segment.

Taiwan-based thermal module maker Chaun-Choung has 40 percent of its revenues contributed by server-related products. CCI ships about eight million thermal modules for servers each year, and is supplying to clients including HP, Dell, and Quanta.

Japan-based thermal module maker Furukawa also recently entered the supply chain of Google and Microsoft to supply products for their datacenters. The company also started sending samples to Facebook and Amazon recently, looking to expand into their supply chains.

Quanta’s server team has 1,000 employees and is focusing mainly on the integration between software and hardware and wants to double the team’s personnel by Christmas. Compal’s server team has recruited about 300 employees in two years and is still expanding.

New Egg beats patent troll

trollNew Egg has declared a victory against a patent troll who tried to claim its patent covered SSL and RC4 encryption.

For those who came in late, SSL and RC4 encryption is as common as muck and the troll in question has gone against over 100 other companies, and brought in $45 million in settlements.

TQP Development claimed that Newegg’s use of newer versions of SSL server encryption technology infringed on it patents. What is worse is that it managed to convince an earlier court that this was the case Newegg was ordered to pay $2.3 million.

At the time New Egg vowed to fight that result in the appellate courts. It did and it won.

Normally companies pay up and go away, but New Egg has a policy of fighting. It has beaten trolls in the past. In March it duffed up an outfit called MacroSolve which sued dozens of companies (including small app development shops) over patent No. 7,822,816, which it claims covers using questionnaires on a mobile app.

The company fought and won a lengthy battle over a patent on an electronic “shopping cart,” and it has defeated Alcatel-Lucent and Kelora

Lee Cheng, Newegg CLO said that patent trolls were bad for any business out there. They often prey on smaller companies, who would rather pay out than take them on directly in court. These trolls hurt innovation and end up costing everyone. It’s a sad situation as many of these small businesses end in million-dollar lawsuits that force them to close before they can even make it in today’s economy.

“Unfortunately, small businesses and even individual developers/entrepreneurs have been threatened and sued too.

“There are many different troll “species,” and bottom feeders send thousands of claim letters out or file hundreds of lawsuits. Their maths says that it always costs less to give them the money they demand than to mount a legal defence,” he said.

 

TV resellers can rejoice as Sky plans 4K service

tvOne of the sales problems for 4K TVs has been a lack of content, but it appears that Sky is getting ready to fix that.

Dubbed SkyQ, the gear will be in the shops soon. Coincidentally it appears soon after BT’s Ultra HD box began selling online.

Like EE TV, Sky’s new box will enable you to share broadcasts across smartphones and tablets as families move towards viewing TV on multiple devices.

It will also let you  watch or record at least four programmes at once although that will require you to learn how to programme the damn thing.

Apparently SkyQ’s killer feature is 4K football which means that it will be only useful for people who want to watch grossly overpaid, tax dodging morons running up and down a field kicking a ball.

For the rest of the world who wants entertainment that investment in a 4K telly is still a waste of money until Sky and its ilk start upgrading their lower res content.

Sky will launch its box within a month or two so we will know then. The company has not released much in the way of content pricing either. If it is like 3D it will probably be a bit expensive.

EC approves Nokia’s Alcatel-Lucent buy

euThe European Commission has approved Finnish telecom equipment group Nokia’s planned buy of Alcatel-Lucent because the two were not close competitors.

It said the merged Fin-French outfit will still face shedloads of competition even if it will have combined market shares around or above 30 percent for several specific types of equipment.

“The overlaps between the two companies’ activities are effectively limited,” the Commission said in a statement.

Nokia had a strong presence in Europe, where Alcatel-Lucent was small, with the positions reversed in North America.

Nokia launched its all-share deal then worth 15.6 billion euros to buys its smaller French rival in April. The move is seen as the company building up its telecom equipment business to compete with market leader Ericsson.

The merged group is smaller than the son of Eric, but bigger than Chinese rival Huawei’s and ZTE.