HP and VMware team up for federated networks

HPHewlett Packard and VMware have teamed up to deliver the industry’s first federated network solution, which is designed to provide customers with more automation and visibility in physical and virtual data virtual centres. Or so they say.

Companies are embracing mobile, cloud, BYOD, so manual network configuration is proving tricky and demanding. Virtualisation helps, as it offers a centralised control pane, but it still does not automate configuration and provisioning of physical devices. That’s where the new HP – VMware “solution” comes into play.

It will combine the HP Virtual Application Networks SDN Controller with VMware’s NSX network virtualisation platform to let customers automate their physical and virtual network infrastructure, all in one place. The companies say the new networking solution will provide a centralised view, unified automation, visibility and control of the complete data center network, improving agility, monitoring and troubleshooting. Or so they say.

It all revolves around man or possibly woman hours. A typical cloud data centre network may need 10,000 provisions per day, each requiring at least 20 network command line changes. These 200,000 command line changes would require 3,333 man or woman hours to complete, assuming one minute per command. The HP-VMware networking “solution” threatens to eliminate manual configuration of both the physical and virtual data centre networks through interoperable automated orchestration of policies. It also will create a single view of the network, both physical and virtual. Or so they say.

“Customers are adopting network virtualisation to gain the necessary agility needed to realise the promise of virtualised and cloud data centres. To be successful, IT organisations need solutions to deliver common management of services and operations across the physical and virtual domains,” said Stephen Mullaney, senior vice president and general manager, networking and security business unit, VMware. “By collaborating with HP on a federated networking solution, we will help our joint customers create a unified network operations model that will radically simplify IT in the software-defined data centre.” Or so they say.

The new HP-VMware networking thing will be available in the second half of 2014, along with HP’s new ConvergedControl software.

AMD updates roadmap, reveals new delays

AMD, SunnyvaleAMD has a new roadmap which sheds more light on upcoming Volcanic Islands GPUs, as well as Kaveri and Kabini based product releases, and delays.

New GPUs are coming soon. AMD will hold a launch event in roughly a month and it is widely expected to launch the new Hawaii card at the event, which will be held – in Hawaii. AMD has already announced that Kaveri products will hit the channel in mid-February 2014. They will be joined by new Kabini SKUs later on, reports Digitimes.

The new Kabini chips will enter mass production in February and they will be announced in March. It appears that this batch will be focused on desktops and big notebooks, as most of them will be quad cores with a 25W TDP. The first desktop Kabini parts were supposed to launch in the second half of 2013, but now it appears they have been pushed back to March. Last week we reported that Kabini is struggling with limited availability and the delay explains it, at least on the desktop front.

Kabini’s successor, Beema, has also been delayed. It was supposed to launch in March 2014, but now it seems it will launch in the second half of 2014 or maybe even in early 2015, which is very bad news indeed.

According to the roadmap, AMD’s FM1 and AM3 sockets will be phased out by the end of the year. In 2014 AM3+ will account for 30 percent of AMD’s desktop processor shipments, while FM2/FM2+ will account for the remaining 70 percent. Kabini will use ST3 and FS1B sockets.

Looking ahead to 2015, AMD should release Carrizo APUs based on the new Excavator architecture and Nolan should replace Beema in the low end. However, delays are possible and when it comes to AMD they are the norm, not an exception.

Microsoft shares soar as Ballmer set to quit

steve_ballmerSteve Ballmer, the CEO of Microsoft, is to retire from the position within 12 months while the software company hustles to appoint a successor.

Ballmer said in a prepared statement: “There is never a perfect time for this type of transition, but now is the right time,” Ballmer said. “We have embarked on a new strategy with a new organization and we have an amazing Senior Leadership Team. My original thoughts on timing would have had my retirement happen in the middle of our company’s transformation to a devices and services company. We need a CEO who will be here longer term for this new direction.”

Microsoft has appointed a committee to search for a successor to Ballmer – a committee which includes founder Bill Gates.

Share prices for Microsoft stock soared in early trading, up by close to eight percent to stand at press time at $34.9.  There have been murmurings that Ballmer should go for quite some time, following what appear to be errors in strategy, including slowness for people to go for Windows 8 and disastrous sales of Microsoft’s Surface RT platform.

 

AMD Jaguar products still thin on ground

jaguar-peltIn late May AMD officially launched its first Jaguar-based APUs. Kabini was supposed to end up in all sorts of products, from cheap and cheerful notebooks, to AIOs and traditional desktops.

Temash is an even more frugal version of the chip, so it was intended for ultraportables, hybrids and similar form factors. Both chips arrived with much fanfare and got a lot of praise from the tech press. They are the most interesting consumer products to come out of AMD in 2013.

However, it’s been exactly three months since the launch and there really aren’t that many actual products to buy. There are some Jaguar-based notebooks and desktops in EMEA and US, but even they are available in a handful of shops, in rather limited numbers. The Acer Aspire V5, HP Pavilion Sleekbook TouchSmart 11, Samsung ATIV Book 9 Lite are Temash powered ultraportables and they are readily available in most European markets, albeit in a limited number of shops. So far they appear to be the only Temash notebooks in stock in Europe.

It is even worse with Kabini. There’s the Lenovo Thinkpad E145 in two SKUs, Toshiba Satellite C70/C75 and a huge Packard Bell 17-incher, which is practically the only Kabini notebook available on the continent, at least the only one to be found in price search engines. It’s only available in two Austrian shops, which is still better than the Lenovo and Toshiba, as nobody appears to have them in stock at the moment.

Then there’s a couple of Acer SFF desktops and a Packard Bell all-in-one, and that’s about it. There’s also not a single mini-ITX board yet, which is bad news for HTPC enthusiasts and tinkerers. It also may indicate that the first batches of Kabini chips are destined solely for OEMs, but we can only speculate.

In any case three months into the launch AMD’s most promising chip of the year is very hard to come by. This is very bad news for AMD. Kabini had the potential to wipe the floor with Intel’s obsolete 32nm Atoms and it should have enjoyed a few months on the market before Intel rolls out new 22nm Bay Trail parts. Now it seems this won’t be the case. The Bay Trail launch is just a few weeks away and it is becoming apparent that AMD failed to capitalize on its lead.

AMD informed us that is has product in stock in the US and EMEA. However, volumes and the number of actual design wins remain a concern. Jaguar is an excellent product with lots of potential, but with the PC market in shambles, it might struggle to gain traction and get plenty of design wins, as vendors and disties are still sitting on heaps of unsold Cedarview and Brazos products.

Intel’s post PC strategy is faltering

Intel-logoEver since Intel got a shiny new CEO, we’ve been hearing talk of an aggressive mobile push, of a more dynamic Intel that will eventually steer clear of trouble and trample the ARM gang with Brian Krzanich at the helm.

This of course will take time, if it is possible to begin with, so Intel’s first order of the day was to talk about mobile rather than do anything about it, and talk it did.

Intel spent much of the last quarter talking about 2-in-1 hybrids, touch enabled Ultrabooks and now it’s outlining its smartphone strategy, complete with LTE. So far it’s been all talk and almost no action.

Earlier this week Intel shed more light on its first LTE chipset, the XMM 7160, which is supposed to launch by the end of the month. It is a multimode chip and currently Intel offers only a single-mode LTE solution, which is obsolete.

Worse, even the XMM 7160 is a discrete solution, it’s not an integrated option like Qualcomm’s LTE. Intel wants the world to think that it’s serious about LTE, but in reality discrete LTE chips are a thing of the past. It’s all about integration now. Intel’s next generation XMM 7260 LTE chipset is set to appear next year, with LTE Advanced support. Intel’s first integrated LTE solution might appear in the first half of 2014. This is very slow indeed and as a result Intel is highly unlikely to score any big phone design wins next year. It can go after second-tier devices, but they’ll probably be scooped up by MediaTek, Qualcomm and other ARM players.

To be blunt, Intel simply won’t do much better on the smartphone front next year. It will gain market share, but we are still talking about low, single digits.

It won’t do much better in other segments, either. It appears to be pinning its hopes on hybrids, which seems very risky at this point. Hybrids, or 2-in-1s, are supposed to combine the portability and practicality of tablets with the productive prowess of proper notebooks. The trouble is that they’re just not there yet. Windows RT is on life support, Windows 8.1 will still be big and bloated. As a result Windows 8.x hybrids will cost a lot more to produce than Android and iOS tablets, margins will be tight and vendors won’t be very happy. The OS itself is another problem. An x86 tablet with legacy support for tons of Windows applications sounds very good, if you’re Dr Who and you can travel back in time to 2009. The market has moved on and legacy support just isn’t what it used to be a few years ago – and it’s losing relevance fast.

The failure of Intel’s Ultrabook push and touch-enabled notebooks is another concern. Ultrabooks were too pricey and they didn’t offer much in the way of new features. Simply slapping a touchscreen on top of them did not address the original shortcomings of the concept, so touchbooks are failing as we speak.

On the opposite end of the spectrum, Intel ditched Atom based netbooks in favour of pricier designs. At about the same time it culled CULV to make way for Ultrabooks. Intel wanted more high-margin silicon in the market, but now it’s focusing on Atom once again. The first Atom based hybrids are starting to show up and they are practically what the netbook would have evolved into had Intel not killed it. In the meantime, cheap tablets and Chromebooks ate its lunch, along with cheap ultraportables based on AMD’s low-end APUs.

As for tablets, Intel dropped the ball years ago and now it’s facing a much tougher market, a market it desperately wants to get back into. Intel recently launched a couple of unimpressive education tablets, running Android. Samsung also tapped Intel for the Galaxy Tab 3, which is equally disappointing spec-wise. Intel now says it wants to do more on the Android front, but it is simply too late. Intel’s x86 support is irrelevant in the Android world and most Android tablets are powered by dirt cheap ARM SoCs. High-end Android tablets, which seem like the obvious choice for Intel chips, aren’t selling well – so even if Intel gets back into the game, it doesn’t stand to make much on Android tablets.

It’s only ticket into the Android universe are high-volume devices, like flagship phones. It will not get them anytime soon. Next year’s Android flagships will still be based on ARM chips and unless Intel pulls off a miracle, it won’t get any in 2015, either. Samsung makes its own Exynos chips and doesn’t really need Intel’s Silvermont. Motorola has also cooked up a custom chip based on Qualcomm’s Krait core, which means Google is also pursuing a custom in-house approach. Apple already designs custom ARM cores and this won’t change. And then there’s Qualcomm. And MediaTek, and Nvidia, and LG, and just about everyone else with an ARM licence under their belt.

EMEA companies put IT budgets to good use

poundsResearch from CA Technologies has revealed that companies in EMEA are increasingly switching their IT budgets from dull, routine maintenance towards designing projects that enable revenue-generating services. The CA Technologies Channel Index 2013 found that EMEA partners spend 34 percent of their time helping consumers with such projects rather than maintenance. However, only 18 percent of the IT spend in Britain was devoted to new revenue-generating services.

“IT projects are being driven by the need for businesses to innovate for growth, while creating new ways to serve customers. And today’s IT director is expected to be the driver of these efforts,” said Sean McCarry, Senior Director, CA Technologies. “Our solutions and partner programmes equip partners with the tools they need to help their customers fuel innovation and drive growth. The Channel Index 2013 shows just how far IT departments and channel partners have come on this journey.”

Chris Gabriel, VP of Solutions Management at Logicalis Group, pointed out that the shift results in less operational waste, allowing IT departments to increase their participation in productive, revenue-generating fields.

“CIOs now see their role as Chief Innovation Officer, and they have recognised that their business value isn’t in managing IT infrastructure, but delivering new IT enabled business experiences,” he said.

The index revealed that 83 percent of surveyed partners in EMEA expect to see increased spending on enterprise mobility over the next year and almost all recognise that the rapid adoption of mobility creates opportunities to help grow their business. Among UK partners, this figure rose to 95 percent.

Cloud computing was identified by CA Technologies partners as the second priority for their customers’ IT investments. Nearly two thirds of the partners surveyed predicted an increase in cloud computing spending over the next year. In the UK, a significant 81 percent of partners expected increases.

Lenovo cooks up BYOD for channel

lenovo-logoLenovo wants to tap the BYOD trend with a new demo kit, offered to its channel partners and customers. The new “Combat Kit” aims to make BYOD simpler and less challenging. It could also reduce the suicide rate among IT specialists in charge of sorting out the mess that is BYOD.

The kit features several Lenovo devices, mostly tablets and hybrids. Partners can pick the ones that best suits their needs and hand them out to end users, reports CRN. The kit includes the ThinkPad X1 Carbon, ThinkPad Helix, ThinkPad Twist and the ThinkPad Tablet 2.

Lenovo brand ambassador Stephen Miller said the sales cycle is changing. In the past, companies would buy ten computers and every end user got the exact same one. With the consumerization of IT, the old one-size-fits-all approach simply doesn’t cut it anymore.

“Now it’s difficult. Everybody wants a different device,” said Miller. “You have confusion around what to sell, and end users don’t know what to buy because of the paradox of choice.”

The kit would effectively allow users choose the device that works best for them. Miller said end users can get a hands on experience, and then partners can sell the device that the end users actually want. There seems to be a lot of interest in the kit and there’s already a waiting list, but Miller said partners should still sign up.

Tough times ahead for notebook ODMs

ancient-laptopSoft demand for notebook PCs and the relentless tablet juggernaut will continue to drag down shipments of Taiwanese ODMs in the current quarter and beyond, according to Bank of America Merrill Lynch. The bank said the outlook for the second half of 2013 remains challenging.

Shipments are expected to grow at a rate of two to three percent, which is very bad news for Acer and Asus. According to analysts, both companies suffered a 40+ percent plunge in unit sales last quarter in the European market. BoA Merrill Lynch said Acer and Asus are suffering from the rise of cheap tablets. Ironically, Asus was one of the pioneers in the Android tablet space and it produces Google’s 7-inch Nexus tablets, but it appears that more and more people are simply turning to even cheaper, white-box tablets.

Analyst Robert Cheng wrote in a note that Acer is likely to see losses over the next four quarter. He did not have many kind words for Asus, either.

“Asustek looks relatively fine, but notebook guidance is quite weak,” he said. Cheng added that Asustek’s “product mix” will become worse in the second half of the year.

As for contract manufacturers, Compal and Wistron should stay flat in the third quarter, while Quanta and Inventec still expect growth. Pegatron will get the worst of it. It is expected to lose some share and client orders, hence its notebook shipments will drop by 5 to 10 percent this quarter.

HP squeezes profit despite poor PC sales

HPHewlett Packard reported net income of $1.39 billion for its third fiscal quarter. HP’s revenue fell eight percent to $27.2 billion, down from $29.7 a year ago. It wasn’t all bad news though. The company managed to post a profit of $1.39 billion, or 86 cents per share, barely beating Wall Street expectations which hovered around 85 cents.

Revenue fell across the board, but the PC business took the biggest hit. HP mitigated the effects of the downturn by cutting costs and focusing on more profitable niches. As a result, its expenses were down 34 percent last quarter, to $25.3 billion, down from $38.5 billion last year. The PC slump is here to stay and HP’s cost cutting seems to be paying dividends, quite literally.

PC revenue was down 11 percent, printer revenue was down 4 percent, while servers, storage and networking were down nine percent. Business services were also down nine percent, financial services took a six percent hit and only HP’s software business ended in the red, up one percent.

HP shares fell three percent following the news, but the company managed to end the day on a positive note. It raised its outlook and now it expects full year earnings in the $3.53 a share to $3.57 share range, up from $3.50 to $3.60.

CEO Meg Whitman told investors that year-on-year revenue growth remains unlikely.

“This is a five-year turnaround with milestones along the way. … We need to accelerate into the next turn,” Whitman said.

Although HP’s PC unit took a big hit, in the big scheme of things it did not underperform, as all PC vendors except Lenovo are going through a rough patch. Some are in much worse shape than HP. However, HP still looks relatively weak on the mobile front. The company ditched the smartphone business a few years ago and its first crack at the tablet market was a flop. However, in recent months it announced several interesting tablets and hybrids, so there’s still hope it could gain a foothold in the tablet market.

Deal could kill any hope of Dell Chromebooks

Dell logoChromebooks are the new netbooks, but not the in the sense that they’ll go extinct over the next couple of years. They are dirt cheap, making them ideal for some niches and recent surveys indicate that Chromebook deployment in SMBs and even some bigger organisations makes a lot of financial sense.

On the other hand, Chromebooks could help PC vendors weather the storm as they complement proper laptops and to some extent tablets. HP, Lenovo, Samsung and Acer are already on board. Asus is rumoured to be working on Chromebooks as well, but what about Dell?

Dell doesn’t do Chromebooks and The VAR Guy reckons that there’s a good chance it won’t do any in the future, either. Dell is trying to go private, some shareholders don’t like the idea one bit and one particular detail could end all hope of Dell Chromebooks. If Dell does indeed go private, it will have to accept a $2 billion loan from Microsoft.

It is speculation at this point, but a $2 billion loan tends to come with some strings attached. Needless to say Microsoft has a vested interest in keeping Chromebooks away from mainstream markets and it already has a great relationship with Dell. In fact, Dell is one of the few PC vendors that did not try to expand into Android tablets. It does make tablets, but they run Windows RT and Windows 8 rather than Android. Its only foray into Android waters was the Ophelia, a thumb drive PC based on Android.

It’s quite a conundrum and it might get even worse. Chromebooks are just getting started and if HP, Lenovo and the rest of the gang start reporting positive sales figures over the next few months, pitchfork wielding shareholders could start demanding Chromebooks and Android gear from Dell. Lenovo is already making a killing on Android smartphones and tablets, Acer and Asus are also doing quite well, so why should Dell shareholders settle for anything less?

Intel talks up hybrids, again

Intel-logoIf we didn’t know any better, we could be forgiven for saying that Intel is starting to lose the plot and panic over its less than impressive showing in mobile.

Just a few quarters ago the chipmaker was making next to no noise on tablets and smartphones, but with the appointment of new CEO Brian Krzanich, Intel changed its tune in a matter of weeks.

Its last earnings call was practically all about Atom. The company barely mentioned Haswell, which launched during the same quarter. Then came a lot of talk about hybrids, 2-in-1s, tablets and touch enabled Ultrabooks, which we like to call touchbooks around the office.

Speaking at a UBM Channel event in Washington earlier this week, Intel’s North American Channel Manager Todd Garrigues said the PC is “not dead yet” and went on to deliver some “good news” for solution providers selling desktops and notebooks. Quite predictably, the “good news” was all about 2-in-1s and hybrids. He then proceeded to show the crowd a couple of such devices, like the Lenovo ThinkPad Helix, reports CRN.

It appears that Intel execs can no longer leave the office without bringing a sample 2-in-1 hybrid with them for some sort of demo. Just a few days ago we had a chance to see Intel President Renee James showing off a Sony Vaio hybrid during an interview with the Wall Street Journal. In the interview James said Intel is now treating Atom and Core equally, which wasn’t the case in the past.

Garrigues also talked up hybrids, saying they combine the portability and ease of use of a tablet with the productivity of a traditional PC. That is the official line at least. We are not sure they do – hybrids will remain a lot pricier than tablets and unless they end up a lot bigger than tablets, they won’t be that great for productivity. It basically sounds like a carmaker promising to develop a new vehicle, part supermini, part pickup. Just because it can be made doesn’t mean it should, and it doesn’t mean it will bring the best of both worlds to the end user.

Garrigues used the opportunity to mention the XP phase-out. He said there are millions of antiquated PC running XP out there, so it’s time for an upgrade.

“Bottom line: There are 500 million PCs out there in the world that are four years or older,” Garrigues said. “So there’s a great opportunity.”

It might be a great opportunity, but it is also a figure that should keep Intel execs awake at night. There’s no better proof that the PC is mature than half a billion people working on ancient 4+ years old PCs and refusing to upgrade. No amount of swanky hybrids will change this.

AMD slashes high-end CPU, GPU prices

AMD, SunnyvaleAMD has slashed the price of its flagship FX-9590 processor from a whopping £699 to just £299. That is the new channel price, reports KitGuru. To be honest, the FX-9590 was overpriced to begin with, so the cut comes as no surprise.

On the APU front, most prices are stable. Kaveri won’t hit the channel before February 2014 and AMD probably won’t mess around with Richland pricing over the next few months.

However, AMD is expected to launch new Volcanic Islands Radeons in late September and it appears it is already thinking about clearing inventory. The sweet-spot HD 7870 GHz edition is now available for as little as €149 on the continent, which appears to be a 10 percent price cut. The HD 7770 retail price also appears to be a bit lower than a few weeks ago.

The biggest drop, however, was reserved for the speedy HD 7970, which is now available for as little as €299 in European retail/e-tail. This appears to represent a 15 percent drop and it’s probably the result of Nvidia’s recent GTX 770 launch.

Microsoft partners get cloud headache

cloud (264 x 264)Over the next six to 12 months Microsoft’s cloud partners are going to have a major headache keeping up with the sweeping changes that Microsoft is planning.

Microsoft Australia partner business and development director, Dean Swan has warned resellers down under that there is going to be a sudden rush of new products and ideas coming in the next six months to a year.

Swan told ARNnet normally they only had to cope with a major new technology release would occur every three to four years.

Resellers needed to work out how to keep sales, pre-sales, and technical teams trained and up to speed with what is happening in the Redmond cloud.

He warned that if a business model was  100 percent service delivery, companies will have to consider what it would look like if 20 percent was managed services delivery that is Cloud-oriented.

Swan also cautioned that companies should not concentrate on the hype but show ways to build a profitable business around the Cloud.

Partners will need to work out the time it will take to achieve the appropriate business model and what form of training is necessary.

Swan said to have a look at what customers are asking for, what they expect from a Cloud vendor and what are they looking for when they move to the Cloud.

Partners must commit to understanding what the Microsoft technology can do and effectively present its capabilities as being powered by the Cloud.

Indian outsourcing prices slump

rupee300The cost of outsourcing to India has plummeted after the rupee slipped to below 100 against the British pound.

According to the India Express  it also has fallen significantly against the US dollar too.

A recent report by Bank of America Merrill Lynch said that Indian outsourcing had been hit hard by the country’s high current account deficit and a lower import cover which had kept the cost of currency high.

While the weaker rupee sent the stock prices of many Indian companies on a slide, it boosted the market performance of IT companies like Tata Consultancy Services (TCS).

In a recent interview with the Business Standard, TCS Chief Financial Officer Rajesh Gopinathan said the weakening rupee allows the company to be more “adventurous” than usual in pursuing business and to win outsourcing deals with lengthier terms.

This is good news for India’s outsourcing companies, particularly as their rivals, China and South Korea,  have a stronger currency and their prices will be higher.

It is also bad news for non-Indian competitors like IBM and Accenture.  A weak rupee allows Indian providers to offer lower rates that cannot be matched.

There is a fear amongst outsourcers that the pressure to match Indian prices might result in a declining standard from non-Indian suppliers.

 

 

Phoenix nabs HP accreditations

HPUK IT infrastructure services company Phoenix has been picked by HP as a converged infrastructure partner in the UK.

HP converged systems is the company’s line of system based products that combine components like servers, storage, networking, software and services for specific workloads, Phoenix says.

Phoenix is now a preferred supplier, and will be providing services such as helping customers build their cloud networks.

Vendor director at Phoenix, Stuart Dickinson, said IT infrastructure is often complex, and can slow company progress because of costs and limitations, but converged infrastructure services lets businesses tackle it more easily.

Phoenix also nabbed other accreditations, including Advanced Storage Specialist, Professional Networking, PC Specialist, and Advanced Computing Specialist, in addition to being a break fix partner of HP’s, offering consultancy, implementation and support.