Server shipments up but revenues down

IBM logoWorldwide shipments of servers only grew 1.9 percent in the third quarter of this year, but revenues fell 2.1 percent compared to the same quarter last year. Big Blue fared particularly badly.

That’s according to the Gartner Group, which said that the worldwide server market is continuing to show weak performance.

There were some bright spots – the Canadian market grew by 6.5 percent, EMEA by 12.1 percent. But the US only showed 0.9 percent growth.

On the X86 server front, units grew by only 2.1 percent year on year but 4.4 percent in revenue. RISC, Itanium and Unix servers fell by 4.5 percent in shipments and 31 percent in revenues.

HP is king of the worldwide server castle, folllowed by IBM, Dell, Cisco and Oracle.

Blade servers fell by 1.5 percent in shipments while racks grew by 2.6 percent in shipments but fell by 1.8 percent in revenues.

Europe fared badly overall, with revenues down 4.3 percent compared to the same quarter.

Gartner analyst Adrian O’Connell said: “Ther performance of server shipments and revenue in EMEA is in a downward spiral.  Revenue has now declined for nine consecutive quarters and shipments have declined for eight.”

He said server revenues across EMEA is at its lowest level for over 15 years.

IBM fared particulalry badly, seeing its revenues fall by 19.2 percent. O’Connell said that the EMEA market is “resetting itself” for vendors that relied on high end platforms. He said the fourth quarter is also expected to be weak.

UK turns into throwaway society

kettleA survey shows that 65 percent of Brits believe that it’s better to plump for new products rather than make do or upgrade existing ones.

Crucial, which has an axe to grind because it supplies memory upgrades, said it surveyed 2,000 people in the UK.

People want to replace old lamps for new whether they’re mobile phones, kettles, computers, microwaves, televisions and toasters.

One in five folk said they were expecting to spend between £100 and £300 replacing existing items in the next month.

A third – actually 34 percent – said if stuff broke down they’d rather replace them than try and fix them.

Roddy Mclean, from Crucial, said that people replaced products at the slightest sign of them slowing down. And here’s the axe grinding: “Lots of people are mssing a trick, as products such as home computers and laptops can easily be upgraded by their owners.”

Apparently one in five people surveyed are likely to trade in their computers for a new lamp rather than upgrading them. Over 90 percent of the people said their computer runs slowly or has difficulty booting.

Windows?  The survey didn’t ask that question.

Tesco feels the economic squeeze

Philip Clarke, TescoThe politicians might say that things are getting better but a multinational corporation seems to have its finger on the pulse of the UK economy and it’s not happy.

Tesco released its interim management statement for its third quarter and the outlook is far from rosy.

According to Philip Clarke, the Tesco CEO, like for like sales fell by 1.5 percent, mostly due to a weaker grocery market.

He said: “Continuing pressures on UK household finances have made the grocery market more challenging for everyone since the summer and our third quarter performance reflects this.”

He said its decision to open fewer stores is holding back Tesco’s performance “in the short term”.

Clarke said that “consumers are still managing the effects of an unprecedented period of declining real incomes and a higher cost of living. The average spending power of a typical UK household is around 10 percent below its 2007 peak in real terms”.

Things are not going particularly swimmingly in its foreign markets, Tesco said.

Avnet hires new man

van Es, AvnetMajor distie Avnet Technology Solutions EMEA said it has made a hire today.

Jeroen van Es is now country manager for Iberia, that is to say Spain and Portugal.

van Es formerly worked for Ingram Micro but with his Avnet hat on his task is to increase sales in Spain and Portugal.  He has a background of 19 years in the IT industry.

Andrew Binding, VP of Avnet Solutions South said that van Es had a proven track record developing and managing teams. “He’s known for building strong and trusting partnerships with both suppliers and customers,” he said.

PC market to take further plunge

surface-pro-2Research from IDC indicates that worldwide PC shipments will fall by 10.1 percent in 2013.

The market research firm said it is most severe fall since records began.

Shipments in 2014 are also set for fall by a further 3.8 percent with total PC shipments staying at 300 million.

Interest in PCs has waned, but IDC said that enterprise sales are performing far better although still falling by five percent year on year.  But, said Jay Chou, a senior analyst at the company, the long term outlook for commercial and consumer markets is not significantly different.

Even developing markets are showing a fall.

He said: “Perhaps the chief concern for future PC demand is a lack of reasons to replace an older system. While IDC research finds that the PC still remains the primary computing device – for example, PCs are used more hours per day than tablets or phones – PC usage is nonetheless declining each year as more devices become available. And despite industry efforts, PC usage has not moved significantly beyond consumption and productivity tasks to differentiate PCs from other devices. As a result, PC lifespans continue to increase, thereby limiting market growth.”

And so to PC tablets running Windows. While in 2017 it is expected to grow to 39.3 million units, from the 2013 figure of 7.5 million, such tablets will only add a few percentage points a year to PC growth.

Birt gets hosting job

BBC HQHost Europe Group said it has appointed Lord Birt of the BBC as its non-executive chairman.

Birt said that Host Europe, which has over a million customers, and offers cloud hosting  and managed hosting, is in a good position to act fast to the needs of its customers. “I am honoured to be invited to join such an industry leading team.”

Euro private equity firm Cinven bought the Group in July and wants to grow it to be the number one in Europe.  It has already bought two companies, Telefonica Germany Online Service and domainFactory.

Birt was the director general of the BBC between 1992 and 2000, and has held a number of other positions including chairman of Paypal Europe.

He is a cross bencher in the House of Lords.

Cinven partner David Barker said that his appointment chimes with rapid growth in the European hosting market. Barker claimed the Group is in a strong position to capitalise on the growth.

Expect big TVs to get cheaper

tv58A report said that while shipments of TFT LCD panels will hit 675 milllion units in 2014, overall figures show a decline from the year before.

According to Digitimes Research, LCD TV panel shipments will only grow by 0.6 percent and there will be a glut of large panels over the winter.

As well as that, the research claims that monitor and notebook panels will decline in 2014.

But Ultra HD TV panels will grow by over 400 percent in 2014, hitting shipments of 15.3 million units.

Salesforce boss gets big cash boost

Salesforce_Logo_2009The CEO of Salesforce is in the money.

Marc Benioff has been given a 20 percent pay rise meaning that he will earn a trifling $1.44 million.

The board also decided to give Benioff share options amounting to 1.85 million, and the current valuation of those shares is close to $29 million.

Benioff now owns shares worth over $2 billion, so he won’t be short of a bob or three.

The board revealed the pay increase in a regulatory filing but didn’t say what Benioff did to get the extra dosh.

Britain a fail on recruiting female IT folk

Scott Fletcher, ANS GroupAn Institution of Engineering and Technology (IET) skills report has shown that only seven percent of IT engineers in the UK are female.

Worse than that, that percentage has only risen by two percent over the last five years.

We’re lagging behind Spain (18%), Italy (20%) and Sweden (26%), the survey shows.

Scott Fletcher, chairman and founder of cloud company ANS Group, said: “We need to increase the flow of young talent into tech and engineering industries and attracting more women is an obvious answer. Currently a large proportion of female Stem graduates (science, technical, engineering and mathematics) are choosing careers in other industries.”

And there’s even worse news because a report from the Institute of Physics earlier this showed half of all the co-educational schools in the UK hadn’t entered a single female student to sit A level physics.

“It seems that Britain’s schools have pigeon holed physics as a ‘boys’ subject which is a notion that needs to be eradicated immediately,” he said. “The IT industry is obviously fluid and businesses need to re-invent themselves every few years. There is no sitting back on past glories in our industry and young talent is the essential fuel for that re-invention.”

Fletcher said the ANS Group has formed a “Cloud Academy” providing training for 60 apprentices a year.  The firm is based in Manchester.

Cloud can yield SMBs 30% savings

Lisette Sens, ZynstraThe channel is being forced to rethink the landscape because of the pervasiveness of cloud computing.

But there are ways for resellers to make margins through cloud offerings, despite the preponderance of services that are available.

That’s according to Lisette Sens, head of channel at Zynstra. She was appointed to the role last week with the remit to sell products through the supply chain.

Sens said one way to attract businesses was through resellers educating SMBs about the benefits of cloud offerings. SMBs can save as much as 30%, she said, implementing desktop enterprise systems.

“This market is growing and should be taken seriously,” she told ChannelEye. “The SMB market is looking for trusted providers. We have done trials in the market and we’re working with Easynet.”

She said reselllers need to find their place in this changing landscape in order to maximise their margins.

“We want to show the SMB world that we really understand them and work with the channel to deliver,” she said.

HP shows small signs of turnaround

HPGiant vendor Hewlett Packard turned in a profit of $1.4 billion on revenues of $29.1 billion, compared to a loss of $6.9 billion in the same fourth quarter a year back.

But although its enterprise group showed growth of two percent, its other divisions – personal systems, printing, enterprse services and software showed declines from the same period last year. Enterprise services fell nine percent, as did software.

All in all, HP’s revenues showed a 2.8 percent decline – and it expects further small declines in revenue.

The enterprise group managed to sell more storage and servers, with a two percent rise in sales. That follows CEO Meg Whitman’s decision a few months ago to shake up the unit.

Whitman thinks that HP needs to spend more money on research and development.

BYODs mean IT departments have lost control

A monolithGartner said that while many businesses think it’s time for them to go mobile, there are obstacles to that move and many don’t know how to proceed.

But, said Darryl Carlton, a research director at the market research company, the key to success is appplications architecture and design,

“Designing your applications to meet the demands of BYOD is not the same as setting usage policies or having strategic sourcing plans that mandate a particular platform,” he said. “BYOD should be a design principle that provides you with a vendor neutral applications portfolio and a flexible future-proof architecture. If the applications exhibit technical constraints that limit choice and limit deployment, then the purchasing policy is irrelevant.”

IT departments are losing control of tools accessing corporate systems and data because of changes in the workforce and processes outside organisations’ boundaries.

“The community of users has expanded to include suppliers, customers, employees and a very broad range of stakeholders,” Carlton said. “We are no longer developing applications for deployment to an exclusive user base over which we exert standards and control.”

Partly, IT departments don’t realise that there are users that IT departments can’t control, and that means standards can’t be dictated and proprietary controls can’t be imposed.

“For CIOs to consider BYOD activities within their organization to be a temporary problem generated by a few disaffected employees would be a tragic mistake. This is a leading indicator of change for which an appropriate response is required. Reasserting control is not an appropriate response. This is a permanent and irreversible shift in the way that IT is procured and implemented to support the organisation, suppliers and customers.”

Tablet failures slow BYOD growth

ipad3A report claimed that nearly half people using tablets have experienced failure in the last two years, making them a poor choice as devices in the business sector.

The survey was undertaken by Panasonic which – it is only fair to say – has an axe to grind because it is pushing its Toughbook range of tablets.

The survey showed that the most common weakest link was extreme temperatures, whether machines were left in places too hot or too cold.

The next common reason for failure was machines being dropped or knocked off desks – that was followed by spillages.  Panasonic claimed one in 10 reported that a vehicle drove over their broken tablets.

Battery problems, touchscreen bugs and screen breakages were also named as reasons for tablets not working – with the average time for repair being two weeks.

The survey showed that tablets are often used wen employees were travelling but 45 percent used it at their desk or in front of clients.

Panasonic didn’t say how many people it had surveyed.

Cloud Distribution signs up WatchDox

Adam DavidsonWatchDox is to be distributed by Cloud Distribution, a specialised VAD in security and networking.

Cloud said that WatchDox is a secure way to improve workflow and moble collaboration on tablets, smartphones, PCs and other devices.

The value added distributor will become WatchDox’s sole distributor for the UK and Ireland.

The offering will become part of Cloud Distribution’s Enterprise Mobility stack.

Adam Davidson, director at Cloud Distribution said: “The need to deliver a secure enterprise mobility strategy is one of the most pressing issues that IT security teams are tackling today as mobile workforces are only set to grow. The addition of WatchDox means that our Enterprise Mobility stack can deliver a complete solution for resellers to offer their end users, all of whom are striving to prevent data loss, mitigate security breaches and meet compliance regulations.”

Ryan Kalember, chief product officer at WatchDox said that Cloud Distribution was the obvious partner for his company because of its security credentials and expertise.

Startup takes on Google

google-ICA London startup thinks it can take on Google and win.

Frank Kristiansen, founder of Seevol.com, said that small companies have the ability to disrupt the Google model.

He said: “It is unheard of that a whole industry can stay so passive in its evolution for so long without being destroyed by small innovative competitors. The way search results are displayed did not change at all since Altavista in 1995 that is 18 years with absolutely no chance!”

Storage is the big problem, he believes and Kristiansen claims search results from Google and other search engines are not good.

The problem with Google, he maintains, is Adsense.  The only purpose is to redirect people to pages and to collect a small payment.

So how can Seevol improve on Google? He said his search engine will only index domains that deliver high quality results and then sift them with an algorithm to find the most relevant.

The site is not online yet and the company is looking for investors to take on Google, Bing, and the rest. Seevol didn’t say how it will solve the storage problem or what its business model is.