More gloom ahead for the PC market

A not so mobile X86 PCThere’s still no light at the end of tunnel for PC sales, market research company IDC has predicted.

It estimates that world wide shipments of PCs will drop by 4.9 percent this year, but it suggests things may be slightly better in 2016 and 2017.

Total shipments of PCs this year are expected to total 293.1 million, but the underlying trend remains poor.

IDC said that some sectors of the market saw an uptick in demand during the second half of last year, but volumes were up because the supply chain was inflated by Microsoft’s plan to cut subsidies in its Windows 8.1 + Bing scheme early this year.

The strong US dollar makes PCs more expensive and there’s a continuing move to other form factors. Intel won’t release its Skylake processor and Microsoft won’t ship Windows 10 until later this year, so many will wait buying until they see which particular writing is on the wall.

Emerging markets don’t offer much either. IDC said that these markets ended 2014 with a decline of 9.5 percent in PC shipments.

Loren Louverde, VP of PCs at IDC, said opportunities for long term growth depend largely on growth in the emerging market. “That seems unlikely with the shift towards mobile devices. Vendors can focus on growth segments of the market such as All in One, slim and convertible PCs, or consolidate share, but pressure on pricing and from competing devices will continue to make it a challenging market.”

Swatch fleshes out smart watch plans

Screen Shot 2015-03-12 at 16.29.23Giant watch vendor Swatch isn’t going to directly take on Apple in the smart watch market.

Instead it has what just might be a far more cunning plan.

According to CEO Nick Hayek, Swatch is going to start selling watches using inexpensive near field communication (NFC) chips, letting you make payments by just waving your wrist at the receiver.

Reuters said that Hayek’s view on Apple is that it is creating a new market for watches which it will be able to leverage. It won’t venture into what he described as having a mini mobile phone on your wrist.

Swatch hopes that people will buy Apple watches because lots of people don’t wear watches and if Apple succeeds in selling as many as it hopes, that will put it and other watch vendors in a stronger position.

Hayek is quoted as saying that Swatch is not in the business of upgrading software every year.

In any case, Swatch is going to introduce sort watches which will connect to Android phones and perform many of the functions of the Apple iWatch. You won’t have to pay hundreds or even thousands of US dollars for this functionality.

ICO busts nuisance call centre

policemanThe Information Commissioner’s Office said it raided a call centre in Hove that it thought is the origin of millions of nuisance phone calls.

The ICO said the company used automatic dialling to make millions of calls about payment protection or debt management.

The calls are made without peoples’ permission and the ICO said it’s impossible for people to opt out of them.

The enforcement people at the ICO removed documents and computer equipment for forensic action and to decide what action it could take to prevent the company from making the the prerecorded calls.

Options include issuing a civil monetary enforcement notice.

David Clancy, who led the raid for the ICO, said: “It is astounding to think this one small company has the ability to pester millions of people with unwanted calls on a huge skill.”

He said the rules are clear about making recorded calls without consent. “If the evidence proves the law has been broken, we will act,” he said.

Electronic marketing regulations are soon to change and that it will make it easier for the ICO to take action, he said.

 

Intel suffers $1 billion hit

Intel-logoChip megagiant Intel has revised its forecast for the first quarter of this year by close to one billion dollars.

The company said that people haven’t been buying the expected number of business PCs, and distributors, dealers and other vendors haven’t been ordering what Intel expected.

Intel thought that small and medium sized companies would flock in their droves to upgrade the now defunct Windows XP operating system. But that hasn’t happened.

It also said that currency conditions in Europe had affected its business.

Now Intel thinks its first quarter revenues will amount to $12.8 billion – down from its original estimate of $13.7 billion.

But if you’re starting to feel sorry for the behemoth, you don’t need to be. It said it is still expecting its gross margin to be about 60 percent, a gross margin that many other enterprises would die for.

 

Tablet shipments to slide

ipad3The next five years for shipments of tablets will see them grow only in the low single digits, according to market research company IDC.

IDC said it expects worldwide shipments of tablets to amount to 234.5 million units this year, that’s only 2.1 percent up from shipments last year.

It anticipates, however, that the commercial market for tablets will grow, and Microsoft will gain some market share in the sector.

IDC said that the Android operating system will remain the leader in the market while Apple’s iOS will show declines this year. Microsoft, which had 5.1 percent share in 2014, is expected to grow to 14.1 percent in 2019.

IDC thinks the introduction of Windows 10 this year will have a “significant impact” because people want consistency across different devices.

Predicted market share in 2019 will be 62.9 percent for Android based tablets, 23 percent for iOS based tablets, and 14.1 percent for Windows based tablets.

IBM pushes low power WANs

ibm-officeBig Blue said it is cooperating with Semtech to create a new technology using low power wide area networks (LPWANs) that it says has advantages over wi-fi and cellular nets for machine to machine communication.

The long rage wide area networks (LoRaWAN) uses a spec and protocol for low power nets that uses a wireless spectrum that can contact sensor over long distance in anticipation of the emergence of the internet of things (IoT).

These networks have better mobility, security, bi-directionality and localisation as well as being cheaper than existing networks, IBM said.

Semtech, IBM and other firms have formed an organisation called the LoRa Alliance to develop and provide standardisation for the technology.

The technology promises communications of over 60 miles in favourable environments, nine miles in semi rural environments and 1.2 miles in urban environments with data rates of 300 bit/s up to 100 kbit/s.

Sensors can run on one AA battery for 10 years and AES128 keys make for good security, IBM claimed.

Applications include machines telling distributors when they’ve run out of supplies or need fixing; cities could offer smart metering; distributors can track cargo containers; and home heating firms would get alerts when oil tanks are running low.

IBM has made the LoRaWAN protocol open source to encourage standardisation.

 

VCE widens its portfolio

Pic Mike MageeVCE, which specialises in converged infrastructure, said it has added a raft of software and hardware products aimed at customers looking to move to a hybrid cloud model.

The company said its Vscale architecture offers speed and simplicity for data centres. The VxBlock Systems use Cisco Application Centric Infrastructure or VMare NSX for software defined networking.

Its VCE Vision Intelligent Operations 3.0 is an update to its management software with unified intelligence across many VCE converged infrastructure systems.

It supplemented these announcements with VCE technology extensions – pre-tested and pre-validate hardware – the announcement means that businesses can add storage and computing resources including EMC and Cisco products.

Further VCE said that it has launched the Federation Enterprise Hybrid Cloud, making it easier to build scalable systems.

VCE said it is now shipping the Vblock System 540 and the System 740 in volume. These products were announced last October.

 

Open Source hardware needs a supply chain

INDUSTRY HP 1The Open Compute Project, which wants to open up hardware the same way Linux opened up software, needs a supply chain badly.

OCP President and Chairman Frank Frankovsky said it formed OCP four years ago to spread the gospel of open hardware and eventually build a market for it.

It now has an impressive array of vendors and customers, including HP, Cisco, Juniper, Broadcom, and Samsung.

While companies looking to adopt this kind of gear include some blue-chip names Bank of America, Goldman Sachs and Capital One are members, the weakness in the set up is the supply chain.

You can’t download servers or boxes in the same way you can open source software,” Frankovsky said.

OCP is looking to business realities when members propose new contributions to the project. It wants the name of a lead customer that wants to buy the technology and the lead supplier that’s willing to build it, as well as whether it’s available from multiple channels so users will have a choice of where to buy it, he said.

Google’s Nearline could melt Glacier

bear_glacerGoogle is offering a new kind of data storage service which should go a long way to melting Amazon’s Glacier.

Nearline is for non-essential data, similar to Glacier, but it is offering it a cent a month per gigabyte. This is more than half the cheapest in the market place, which is Microsoft’s 2.4 cents a gigabyte.

Glacier storage has a retrieval time of several hours, and Nearline data will be available in about three seconds.

While three seconds is years for something like serving a web page, it is ideal for data analysis as well as long-term storage.

This could be Google’s cunning plan – positioning itself as the cloud computing company for all kinds of data analysis.

Tom Kershaw, director of product management for the Google Cloud Platform said that it is not about storage stupid. Its about what you do with analytics. Set ups like Nearline will mean you never have to delete anything and you can always use data.

Google announced plans with several storage providers, including Veritas/Symantec and NetApp, to encrypt and transport data from their systems onto Nearline.

On the consumer front, Dropbox charges about $10 a month to store a terabyte of data, which is the same price as Nearline and Glacier. However those businesses count on most of their customers storing well below their limit.

Either way it is looking like things are hotting up on the cloud with costs being driven down. Scattered showers much be expected.

 

 

Direct phone connections to Cuba on way

1920s-telephone-advertAn agreement to build a direct telephone connection between the United States and Cuba has been inked, Cuba’s national telecom provider announced.

The US-based IDT reached an agreement with Cuba’s Empresa de Telecomunicaciones de Cuba (ETECSA) to provide direct international long distance telephony.

This marks the first finalised agreement between companies from the two countries since the joint December 17 announcement by U.S. President Barack Obama and his Cuban counterpart Raul Castro that they would restore diplomatic relations.

“The re-establishment of direct communications between the United States and Cuba will help offer greater ease and quality of communications between the people of both nations,” ETECSA said in a statement.

Phone communication between the two countries was only possible with with calls passing through third countries.

Obama used his executive authority to ease some of the travel and trade restrictions on Cuba and has asked the Congress to lift the embargo completely. Such legislation was introduced in the Senate but has been opposed by the Republicans, hoping to pick up the dissident Cuban ex-pat vote in Florida.

 

Chinese make iWatch for $40

Screen Shot 2015-03-09 at 18.15.41China is already making cloned copies of Apple’s Watch for just $40 which look the same and appear to do the same things.

Knockoff versions of the Apple Watch can be found at Huaqiangbei electronics market in the southern city of Shenzhen, and others are being sold nationwide via popular e-commerce websites.

The fakes look exactly like an iWatch but have names like “Ai Watch” and “D-Watch,” they cost between 250 yuan and 500 yuan ($40 to $80). Apples effort will set you back $300-$15,000.

They run Android and have been adjusted to look like an Apple interface. Some use Apple-like icons on the home screen.

The copycats say that the hardware is a doddle, but the software is the tricky bit.

Apparently the sellers will get better over time and soon it will be impossible to tell the two products apart. But the fact that they can make such clones based on leaks, and pictures released on Apple, makes you wonder why it took Jobs’ Mob two years to come up with the same product for nearly ten times the price.

Their efforts were made easier when Apple dropped most of the expected functionality while keeping the price the same. Still you get what you pay for… oh.

 

 

Kaspersky finds more US snoops

spyMoscow-based Kaspersky Labs has uncovered more evidence indicating that the US National Security Agency is behind a particularly successful hacking group.

“Equation Group” ran the most advanced hacking operation ever uncovered and was untouched for more than 14 years.

Kaspersky researchers did not say that the hackers were the NSA, saying only that the operation had to have been sponsored by a nation-state with nearly unlimited resources to dedicate to the project.

However the mountain of  evidence that Kaspersky provided  strongly implicated the spy agency.

The strongest new tie to the NSA was the string “BACKSNARF_AB25” discovered only a few days ago embedded in a newly found sample of the Equation Group espionage platform dubbed “EquationDrug.” “BACKSNARF,” according to page 19 of this undated NSA presentation, was the name of a project tied to the NSA’s Tailored Access Operations.

“BACKSNARF” joins a host of other programming “artifacts” that tied Equation Group malware to the NSA. They include “Grok,” “STRAITACID,” and “STRAITSHOOTER.” Just as jewel thieves take pains to prevent their fingerprints from being found at their crime scenes, malware developers endeavor to scrub usernames, computer IDs, and other text clues from the code they produce. While the presence of the “BACKSNARF” artifact isn’t conclusive proof it was part of the NSA project by that name, the chances that there were two unrelated projects with nation-state funding seems tiny.

The code word is included in a report Kaspersky detailing new technical details uncovered about Equation Group.

Among other new data included in the report, the timestamps stored inside the Equation Group malware showed that members overwhelmingly worked Monday through Friday and almost never on Saturdays or Sundays. The hours in the timestamps appeared to show members working regular work days, an indication they were part of an organised software development team.

The timestamps show the employees were likely in the UTC-3 or UTC-4 time zone, a finding that would be consistent with people working in the Eastern part of the US.

 

 

Gigaom runs out of cash

map-of-internetTechnology web site Gigaom has closed down, after saying it had run out of cash.

Gigaom was started by our old friend Om Malik and had around six and a half million pages views a month.

But advertising revenue for small sites is at an all time low, following the disintermediation of adverts for the web.

Tom Foremski, from Silicon Valley Watcher, said that one of the biggest problems of the internet is that there is no value attached to good quality media content.

He said: “We still have no satisfactory business model that can save the media industry from the disruptive economic forces of the web, that continue to hound its shrinking news rooms and dwindling pools of exhausted professionals.”

Part of the problem, Foremski said, is that a shift to accessing the web via mobile phones means it’s almost impossible to make money from adverts.

He said it’s likely that it’s nearly impossible to make a living as an independent publisher because unless your web views are sky high, the return on adverts is tiny.

Sound systems face wireless revolution

Screen Shot 2015-03-11 at 14.24.31Home audio systems are undergoing a sea change because of the popularity of mobile phones, according to a report from IHS Technology.

The analysts said that shipments of connected audio products – that includes wireless speakers, wireless sounders and connected AV receivers will grow at a compound annual growth rate (CAGR) of 88 percent.

In unit terms, that’s a rise from 1.5 million units in 2010 to close to 66 million units in 2016.

Paul Erickson, a senior analyst at IHS, said that its penetration of tablets and smartphones and streaming services including Spotify that are creating a shift in peoples’ perception.

“Consumers are seeking ways to wireless play audio from their mobile devices on speakers in the room they’re in, in multiple rooms in a household, and on speakers carried with the. This need will drive strong global growth in wi-fi and Bluetoosh connected speakers over the next few years,” he said.

Major players in the market will include Samsung, LG, Sony, Bose, Denon, and DTS.

And while prices for connected multi-room speakers are high, they will still be adopted by many people. Sony, Samsung and LG are all expected to put serious marketing bucks into the equation.

Apple faces watch attack

Screen Shot 2015-03-09 at 18.15.41If Apple thinks it will have the smart watch market to itself, it had better think again. Traditional vendors of watches are on the march.

According to Reuters, the Swiss watch industry is preparing itself to parachute into the smart watch sector, following Apple’s announcement of a range of glitzy wrist watches earlier this week.

The report said that a number of big players in the watch business are quietly preparing to introduce smart watches – including Swatch, Guess, Richmond and LVMH. Richemonte owns the Montblanc brand.

Apparently, the companies believe that Apple may ignite the taste of youngsters for watches and they hope to make sales off the back of the rush of publicity the Apple iWatch has generated.

Swatch publicly confirmed in January that it was ready for the smart watch and its device won’t be tied just to the Apple iPhone but will support the Android operating system too.

And, perhaps crucially, it will have much longer battery life than Apple’s offering.

Guess, too, has far advanced plans for a smart watch.

Perhaps more crucially, the traditional timepiece manufacturers have long established routes to market and unparalleled distribution know how.