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.

Flash drives still have problems

flash_gordon (1)Kroll Ontrack, a company which specialises in data recovery, claimed that while nearly 90 percent of the people they surveyed used solid state drives (SSD), a third claimed they had some malfunctions.

Obviously Kroll has something of an axe to grind here, but it has surveyed over 2,000 people in the survey.

Of the SSDs which showed a malfunction, over 60 percent lost data and less than 20 percent managed to recover their data.

The reason it’s difficult to recover data is because it’s scattered on the drive, compared to hard disk drives, where the information is stored linearly, according to Paul Le Messier, operations manager at Kroll.

SSDs, however, are steadily become more popular both for enterprises and individuals. Of those surveyed, three quarters use flash drives in laptops and mobiles, 60 percent in desktop PCs, and 20 percent in servers.

The main attractions are performance and speed.

With the increasing usage of SDDs however, Kroll has averaged a 100 percent increase in recovery requests year on year from 2011 to 2014.

 

Juniper extends deal with Canonical

Pic Mike MageeUbuntu provider Canonical and Juniper Networks said they have extended their relationship to provide OpenStack based cloud offerings.

The deal is intended for use by the telecommunications industry.

The OpenStack software lets service providers virtualise core networks and network functions and is claimed to give better performance, scale and reliability.

Juniper said it will also provide complete service support for Canonical’s Ubuntu server operating system.

OpenStack is an open source cloud management platform with a large community of users, developers and founders, and Jupiter said over half of OpenStack instances run Ubuntu.

Both Juniper and Canonical have created Contral Cloud Platform which is a carrier grade OpenStack offering. Both companies will work on joint product development and marketing, and will work with their customers to include service provider needs in the cloud.

Healthcare systems are subject to hacking

wargames-hackerHospitals, clinics, trusts and insurers are under a barrage of cyberattacks but the healthcare section does not seem to be spending enough money to protect itself.

According to ABI Research, cybersecurity for healthcare protection will only be worth $10 billion by 2020, while other sectors such as financial and defence are coping.

ABI said “the healthcare industry is drowning” because of attacks from malicious online agents and a lot of companies and organisations in the sector are failing to modernise to take account of current threats.

Michelle Menting, a practice director at ABI, said: “Cybersecurity for healthcare is still a small fragmented market but the potential opportunities for expansion are large and will continue to grow as healthcare organisations increasingly come under cyberfire.”

She said a few startups such as TrueVault and FireHost are targeting the healthcare sector and building a niche for themselves. There are also managed services and cloud apps from companies like NetFortris and ID Experts.

Hardcopy peripherals value grew

HPA report from IDC said that values of hardcopy peripherals worldwide increased in the fourth quarter by 1.7 percent, bringing in revenues of $15.2 billion.

But although the value figure was up, unit shipments fell by 2.6 percent during the quarter, amounting to 30.8 million inits.

The laser segment grew for the whole year by 0.8 percent, and colour laser shipments grew, at the expense of monochrome lasers, where shipments fell.

Canon was number one during the fourth quarter, with most of its shipment growth coming from the US, Canada, Japan and Western Europe.

HP also saw shipments grow in the Canadian and Western European regions.

When the market is divided out, the fourth quarter shows that inkjet printers fell by 3.9 percent, while laser shipments increased by 0.2 percent.

A4 printers remain the dominant type with 78.4 percent unit share, compared to A3 printers with 21.6 percent unit share.

Lenovo gets hacked

lenovo-logoA cyberattack by a hacking group called Lizard Squad brought down Lenovo’s web site yesterday.

That’s following the revelation that Lenovo shipped adware called Superfish on some of its notebook devices.

Lizard Squad claimed responsibility for downing the Sony site at the end of last year.

Lenovo managed to get its site up and running after people that went to its site were redirected to other web sites.

Lenovo has stopped including Superfish shipping on its machine and offered people that had encountered it a software fix to remove it.

Lizard Squad managed to use a vulnerability to Lenovo’s name registrar to divert people away from the Lenovo web site.

 

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.

Intel brings the Joy of X to the Atom

atomIntel has finally woken up to the fact that its esoteric branding of Atom chips is leading to a lot of confusion amongst suppliers and customers.

Historically Intel has thought that customers and suppliers would instinctively know the difference between the Atom Z3735F or the Atom Z3735G.

Now Intel has decided to bring in naming designations which are similar to its Core brands and Xing up Atom at the same time.

New Atom chips will have the X3, X5 and X7 designations. An Atom X3 will deliver good performance, X5 will be better and X7 will be the best, an Intel rep said.

Faster X7 chips for high-end tablets may have better graphics and more wireless connectivity options than X5 chips and will cost more.

Intel’s name change comes ahead of the Mobile World Congress trade show, where Intel is expected to announce new mobile chips. It’s likely that X3 will be the formal name for Atom smartphone chips code-named Sofia, while the Atom X5 and X7 will be names for tablet chips for Cherry Trail.

In 2009, Intel similarly renamed its Core processors, a move met with some opposition among chip enthusiasts. The resistance quickly crumbled as the new names caught on.  It is likely that the Atom name changes will be greeted with the same enthusiasm.

US no longer the Land of the Fee

 Statue-of-LibertyThe US will finally get net neutrality after the Republicans realised that mindlessly defending telco’s rights to charge people double were going to cost them votes.

Republicans conceded that the gruelling fight with President Obama over the regulation of Internet service appears over, with the president and all those people who did not want to be charged for internet use were victorious.

The Federal Communications Commission is expected on Thursday to approve regulating Internet service like a public utility, prohibiting companies from paying for faster lanes on the Internet.

Republicans, many of which take donations from the phone companies that opposed the scheme, had slammed the plan as “Obamacare for the Internet.”  It looks like that was also a mistake, as a large chunk of Americans did well under Obamacare.

But it also became clear that the Senators needed bi-partisan support to shaft net neutrality and there was no way that the democrats would support it.

It is not over yet. The new F.C.C. rules are still likely to be tied up in a protracted court fight with the cable companies and Internet service providers that oppose it, and they could be overturned in the future by a Republican-leaning commission.

The F.C.C. plan would let the agency regulate Internet access as if it is a public good. It would follow the concept known as net neutrality or an open Internet, banning so-called paid prioritization — or fast lanes — for willing Internet content providers.

In addition, it would ban the intentional slowing of the Internet for companies that refuse to pay broadband providers. The plan would also give the F.C.C. the power to step in if unforeseen impediments are thrown up by the handful of giant companies that run many of the country’s broadband and wireless networks.

Dave Steer, director of advocacy for the Mozilla Foundation, the nonprofit technology foundation that runs Firefox said that despite the telcos out spending out outlobbying the net neutrality lobby, they still managed to lose.

In fact there is talk that the days of top-down decisions by executives investing in or divesting themselves of resources, paying lobbyists and buying advertisements might be over.  This case showed that it was possible to remove the old system by mobilising Internet customers and users.