It's too bad the National Transportation Safety Board can't investigate Google to find out just why Gmail crashed Tuesday as Google's explanations for its outages (via its dashboard) are short and kindergarten-like.
The NTSB would seek out the root cause of the outage, hold hearings and issue a report with recommendations for fixing the problem. But Google follows the standard operating practice of cloud and SaaS (Software-as-a-Service) providers, and that is to tell customers as little as possible about an outage. They treat their customers like dumb bunnies.
A Gmail outage isn't on the scale of a contaminated food supply incident, the discovery of lead paint on children's toys, or a plane crash—all events that trigger a federal investigation and detailed reports that flesh out causes and remedies.
But what happens if Google wins contracts to provide applications and mail services for Los Angeles and other government entities?
Cloud and SaaS providers increasingly want to manage critical services for government. And in time, outages that are now annoyances may have critical implications to them. Los Angeles' IT department is recommending the city move to Google Apps and says the company's services "often exceed the current city level."
That's a plus for Google but if something goes wrong with LA's IT systems, at least there is still a clear line of accountability to the managers responsible and an opportunity to probe.
But along with telling customers as little as possible, hosting, cloud and SaaS providers indemnify themselves as much as possible from any business losses resulting from an outage.
In theory, the accountability is provided by the market: a customer can move to new service provider. But a migration to the cloud may be a path of no return. LA, in its assessment of cloud services, said that if it ditches its current infrastructure, "it may be cost-prohibitive to return to the city-owned and operated structure."
Today, the harm is mostly economic. When eBay Inc.'s PayPal service crashed last month, it was just something customers had to deal with it.
PayPal blamed the failure on a "back-end router" and some redundancy issues, and left it at that. That meant the companies like Sailrite Enterprises Inc., a sailing supply company, which relied exclusively on PayPal, were unlikely to learn what happened and had to suffer the loss.
But if cloud and SaaS providers manage government services then it's unlikely that an informed public will settle for incomplete explanations about outages.
If the service is critical, they will want to know what went wrong. Was the equipment upgraded, patched? Was staffing at proper levels? When was the last time someone tested the emergency generators? And so on.
Answers to fair and legitimate questions will be sought and little "dashboards" aren't going to cut it.
Agencies
Showing posts with label Asia-Pacific. Show all posts
Showing posts with label Asia-Pacific. Show all posts
Thursday, September 3, 2009
Monday, August 24, 2009
No pay for Honeywell employees for 10 days
Honeywell has announced that its employees will have to take a mandatory 10 days off in the month of December-January without pay. Krishna Mikkilineni, President of Honeywell Technology Solutions, conveyed the decision at a public gathering in Bangalore recently, reports a media.
On this matter, a Honeywell Spokesperson said, "Even as Honeywell continues to grow its businesses in India, our employees have agreed to participate in a voluntary and temporary reduced work schedule, in consonance with their colleagues elsewhere."
Honeywell, which makes products like aviation electronics, car turbochargers and temperature control systems for buildings, has been hit badly by the global recession in all of the key businesses it supports - aviation, auto and property. In the second quarter ended June 30, its profit plunged 38 percent and revenue dropped 22 percent.
In the quarterly report, the company said that it did not expect any recovery this year from the recession, as customers were expected to keep holding off on the purchase of Honeywell parts. Sales in the aerospace unit, which makes radar systems and other aviation equipment, dropped 17 percent, to $2.7 billion. The company said that many of its airline customers were choosing to use parts from their own idled planes for repairs rather than buying new parts from the company. One of the few growth areas is military sales, where Honeywell expects a three percent growth in sales. David M. Cote, Chief Executive, Honeywell said, "We are executing very well. Unfortunately, it is a very tough economic environment."
The company has taken a number of cost cutting measures. At least for some employees in the U.S., Friday is now a half-day without pay. In India, where it has 10,000 employees, benefits like cafeteria subsidies and vacation rewards at the end of five years of service with the company have been withdrawn.
SiliconIndia
On this matter, a Honeywell Spokesperson said, "Even as Honeywell continues to grow its businesses in India, our employees have agreed to participate in a voluntary and temporary reduced work schedule, in consonance with their colleagues elsewhere."
Honeywell, which makes products like aviation electronics, car turbochargers and temperature control systems for buildings, has been hit badly by the global recession in all of the key businesses it supports - aviation, auto and property. In the second quarter ended June 30, its profit plunged 38 percent and revenue dropped 22 percent.
In the quarterly report, the company said that it did not expect any recovery this year from the recession, as customers were expected to keep holding off on the purchase of Honeywell parts. Sales in the aerospace unit, which makes radar systems and other aviation equipment, dropped 17 percent, to $2.7 billion. The company said that many of its airline customers were choosing to use parts from their own idled planes for repairs rather than buying new parts from the company. One of the few growth areas is military sales, where Honeywell expects a three percent growth in sales. David M. Cote, Chief Executive, Honeywell said, "We are executing very well. Unfortunately, it is a very tough economic environment."
The company has taken a number of cost cutting measures. At least for some employees in the U.S., Friday is now a half-day without pay. In India, where it has 10,000 employees, benefits like cafeteria subsidies and vacation rewards at the end of five years of service with the company have been withdrawn.
SiliconIndia
Will Accenture layoff 336 executives in 2009?
Accenture, a business consulting and outsourcing company is likely to lay off around 336 senior-level managers as part of a broad-based restructuring effort. William Green, CEO, Accenture said, "We are taking this step to position Accenture better for both short-term and long-term economic improvement growth and profitability."
The company has about 177,000 employees globally, of which 4,800 are senior-executive employees. The lay off is likely to be completed by the end of November 2009. The company said that the reductions would cost about $247 million in the fourth quarter, which ends on August 31. Out of $247 million, about $128 million of the charge is for severance and related costs of workforce reductions at the senior executive level and $119 million linked to reduction of excess office space. The company said that the space reductions would be completed by the end of August, while the job cuts are expected to be completed in the first quarter of fiscal 2010.
According to a projection by Goldman Sachs Group, global technology spending will decline by eight percent this year. Accenture said that it continued to expect net revenues for the fourth quarter in the range of $5 billion to $5.2 billion with operating margins between 13.4 percent and 13.7 percent. But the company also added that the restructuring charges will likely reduce its earnings per share for both the fourth quarter and the full year by 24 cents.
The company had generated net revenue of $23.39 billion for the fiscal ended August 31, 2008. In the last one year, the stock of Accenture has climbed by 11 percent on the New York Stock Exchange (NYSE).
Agencies
The company has about 177,000 employees globally, of which 4,800 are senior-executive employees. The lay off is likely to be completed by the end of November 2009. The company said that the reductions would cost about $247 million in the fourth quarter, which ends on August 31. Out of $247 million, about $128 million of the charge is for severance and related costs of workforce reductions at the senior executive level and $119 million linked to reduction of excess office space. The company said that the space reductions would be completed by the end of August, while the job cuts are expected to be completed in the first quarter of fiscal 2010.
According to a projection by Goldman Sachs Group, global technology spending will decline by eight percent this year. Accenture said that it continued to expect net revenues for the fourth quarter in the range of $5 billion to $5.2 billion with operating margins between 13.4 percent and 13.7 percent. But the company also added that the restructuring charges will likely reduce its earnings per share for both the fourth quarter and the full year by 24 cents.
The company had generated net revenue of $23.39 billion for the fiscal ended August 31, 2008. In the last one year, the stock of Accenture has climbed by 11 percent on the New York Stock Exchange (NYSE).
Agencies
Wednesday, July 29, 2009
Analytics company SPSS Inc to be acquired by IBM
IBM plans to buy technology services company SPSS Inc for about $1.2 billion in cash, the companies said on Tuesday.
SPSS shareholders will receive $50 a share, a 42% premium to Monday's closing price of $35.09 on Nasdaq.
Chicago-based SPSS provides predictive analytics software and services. Predictive analytics are used by companies to forecast future trends and spot shifts in consumer patterns, helping them control costs and use resources more wisely.
IBM said the deal will help expand its Information on Demand software portfolio and business analytics capabilities.
Shares of SPSS jumped 41 per cent in premarket trade to about $49.50. The shares had already enjoyed a gain of about 30 per cent this year.
The deal values SPSS at about 25 times analysts' estimated 2010 earnings per share, and the $50 per share price represents an all-time high for the stock, topping its previous all-time top of $47.87.
The deal is subject to SPSS shareholder approval and regulatory clearances, and is expected to close later in the second half of 2009, the companies said.
Separately, IBM said it has acquired closely-held Ounce Labs Inc, whose software helps companies reduce the risks and costs associated with security and compliance concerns. Financial terms were not disclosed.
Back in May, IBM's chief financial officer, Mark Loughridge, told the Reuters Technology Summit that the valuations of potential acquisition targets were attractive. IBM has spent $20 billion buying more than 100 companies since 2000, paying prices that range from as little as $50 million to as much as $5 billion.
Agencies
SPSS shareholders will receive $50 a share, a 42% premium to Monday's closing price of $35.09 on Nasdaq.
Chicago-based SPSS provides predictive analytics software and services. Predictive analytics are used by companies to forecast future trends and spot shifts in consumer patterns, helping them control costs and use resources more wisely.
IBM said the deal will help expand its Information on Demand software portfolio and business analytics capabilities.
Shares of SPSS jumped 41 per cent in premarket trade to about $49.50. The shares had already enjoyed a gain of about 30 per cent this year.
The deal values SPSS at about 25 times analysts' estimated 2010 earnings per share, and the $50 per share price represents an all-time high for the stock, topping its previous all-time top of $47.87.
The deal is subject to SPSS shareholder approval and regulatory clearances, and is expected to close later in the second half of 2009, the companies said.
Separately, IBM said it has acquired closely-held Ounce Labs Inc, whose software helps companies reduce the risks and costs associated with security and compliance concerns. Financial terms were not disclosed.
Back in May, IBM's chief financial officer, Mark Loughridge, told the Reuters Technology Summit that the valuations of potential acquisition targets were attractive. IBM has spent $20 billion buying more than 100 companies since 2000, paying prices that range from as little as $50 million to as much as $5 billion.
Agencies
Tuesday, July 28, 2009
Apple,Palm battle it for the smartphone market
Palm Inc has fired another volley at Apple Inc in their smartphone war, as the two rivals tussle over whether iTunes should be compatible with Palm's new Pre smartphone.
Palm, whose executive ranks include former Apple brass, released a software update for the Pre this week that allows it to sync again with Apple's iTunes media management software.
The move comes after Apple last week issued its own software update to close a loophole in iTunes that had allowed it to sync with the Pre. ITunes is designed to work with Apple's iPod and iPhone products.
Palm mimicks Steve Jobs
Palm announced the software update in a blog post that mimicked Steve Jobs' signature catchphrase "Oh, and one more thing," which the Apple chief executive has often used to announce a brand new product.
"Oh, and one more thing: Palm webOS 1.1 re-enables Palm media sync. That's right -- you once again can have seamless access to your music, photos and videos from the current version of iTunes (8.2.1)," said Palm's blog posted late on Thursday.
It was not immediately clear when Apple may issue another software patch to counter Palm's move. When asked for comment, an Apple spokesman said, "As we've said before, newer versions of Apple's iTunes software may no longer provide syncing functionality with unsupported digital media players.
$200 Pre was launched in June
The $200 Pre launched in early June as a competitor to Apple Inc.'s iPhone, became the first non-Apple device that could connect directly to iTunes. Palm launched the Pre to good reviews, seeking to win a slice of the touch screen smartphone market now dominated by Apple's iPhone. Prior to the launch, Palm had touted that the Pre "synchronizes seamlessly with iTunes."
RBC Capital Markets analyst Mike Abramsky estimates Palm has sold 325,000 to 375,000 Pre phones so far, ahead of expectations. In comparison, Apple sold more than a million iPhone 3GS units in the first three days on the market.
While analysts and the Pre's carrier, Sprint Nextel Corp, have said it's too soon to know if the phone will be a real hit, it has already sparked a huge rally in Palm shares this year.
War with Apple generating plenty of drama
Avian Securities analyst Matthew Thornton said the war with Apple is generating plenty of drama, even though few Pre users bought their phone with the intention of syncing with iTunes.
"There's a lot of hype around it," he said, noting that some senior Palm personnel formerly worked at Apple, making the rivalry between the two companies seem that much sharper even if the dispute will likely have a limited economic impact.
Palm Chief Executive Jon Rubinstein had helped create the iPod, and senior vice president of product development Mike Bell also used to work at Apple.
Rubinstein was brought in as Palm's executive chairman from Apple
Rubinstein was brought in as Palm's executive chairman when private equity firm Elevation Partners bought a stake in the company in 2007, and he was named CEO last month. Elevation's co-founders include tech investor Roger McNamee, former Apple Chief Financial Officer Fred Anderson and singer Bono.
Kaufman Bros analyst Shaw Wu called Palm's move a "modest negative" for the company.
"While we acknowledge this is a short-term fix, frankly, we would have preferred Palm respond in a more professional and mature fashion," he wrote in a research note. "We do not believe hacking third-party software to work with one's hardware is a viable long-term business model, especially for a publicly traded company."
Palm was a pioneer of handheld devices
Palm was a pioneer of handheld devices, but has fallen well behind competitors like Apple and BlackBerry maker Research in Motion Ltd.
"Palm believes that openness and interoperability offer better experiences for users by allowing them the freedom to use the content that they own without interference across devices and services," Palm spokeswoman Leslie Letts said.
Indiatimes
Palm, whose executive ranks include former Apple brass, released a software update for the Pre this week that allows it to sync again with Apple's iTunes media management software.
The move comes after Apple last week issued its own software update to close a loophole in iTunes that had allowed it to sync with the Pre. ITunes is designed to work with Apple's iPod and iPhone products.
Palm mimicks Steve Jobs
Palm announced the software update in a blog post that mimicked Steve Jobs' signature catchphrase "Oh, and one more thing," which the Apple chief executive has often used to announce a brand new product.
"Oh, and one more thing: Palm webOS 1.1 re-enables Palm media sync. That's right -- you once again can have seamless access to your music, photos and videos from the current version of iTunes (8.2.1)," said Palm's blog posted late on Thursday.
It was not immediately clear when Apple may issue another software patch to counter Palm's move. When asked for comment, an Apple spokesman said, "As we've said before, newer versions of Apple's iTunes software may no longer provide syncing functionality with unsupported digital media players.
$200 Pre was launched in June
The $200 Pre launched in early June as a competitor to Apple Inc.'s iPhone, became the first non-Apple device that could connect directly to iTunes. Palm launched the Pre to good reviews, seeking to win a slice of the touch screen smartphone market now dominated by Apple's iPhone. Prior to the launch, Palm had touted that the Pre "synchronizes seamlessly with iTunes."
RBC Capital Markets analyst Mike Abramsky estimates Palm has sold 325,000 to 375,000 Pre phones so far, ahead of expectations. In comparison, Apple sold more than a million iPhone 3GS units in the first three days on the market.
While analysts and the Pre's carrier, Sprint Nextel Corp, have said it's too soon to know if the phone will be a real hit, it has already sparked a huge rally in Palm shares this year.
War with Apple generating plenty of drama
Avian Securities analyst Matthew Thornton said the war with Apple is generating plenty of drama, even though few Pre users bought their phone with the intention of syncing with iTunes.
"There's a lot of hype around it," he said, noting that some senior Palm personnel formerly worked at Apple, making the rivalry between the two companies seem that much sharper even if the dispute will likely have a limited economic impact.
Palm Chief Executive Jon Rubinstein had helped create the iPod, and senior vice president of product development Mike Bell also used to work at Apple.
Rubinstein was brought in as Palm's executive chairman from Apple
Rubinstein was brought in as Palm's executive chairman when private equity firm Elevation Partners bought a stake in the company in 2007, and he was named CEO last month. Elevation's co-founders include tech investor Roger McNamee, former Apple Chief Financial Officer Fred Anderson and singer Bono.
Kaufman Bros analyst Shaw Wu called Palm's move a "modest negative" for the company.
"While we acknowledge this is a short-term fix, frankly, we would have preferred Palm respond in a more professional and mature fashion," he wrote in a research note. "We do not believe hacking third-party software to work with one's hardware is a viable long-term business model, especially for a publicly traded company."
Palm was a pioneer of handheld devices
Palm was a pioneer of handheld devices, but has fallen well behind competitors like Apple and BlackBerry maker Research in Motion Ltd.
"Palm believes that openness and interoperability offer better experiences for users by allowing them the freedom to use the content that they own without interference across devices and services," Palm spokeswoman Leslie Letts said.
Indiatimes
Sunday, July 26, 2009
PC's from ViewSonic now in India
US-based visual display product maker ViewSonic today unveiled its first all-in-one PC for the Indian market at a price tag of Rs 32,000.
The system 'VPC100' is the first of a new line of concept products that the company plans to launch in India. The PC allows users to watch HD movies, browse Internet, play games or view documents with crisp details. It is powered by Intel's 1.6GHz Atom processor, the company said.
ViewSonic Technologies India Country Manager Gautam Ghosh said ViewSonic's PC will be available in India through the company's authorised distributor Redington India at an MRP of Rs 31,999.
The domestic market is flooded with computers with basic features to advanced functions at a price range starting from Rs 8,000 onwards.
Agencies
The system 'VPC100' is the first of a new line of concept products that the company plans to launch in India. The PC allows users to watch HD movies, browse Internet, play games or view documents with crisp details. It is powered by Intel's 1.6GHz Atom processor, the company said.
ViewSonic Technologies India Country Manager Gautam Ghosh said ViewSonic's PC will be available in India through the company's authorised distributor Redington India at an MRP of Rs 31,999.
The domestic market is flooded with computers with basic features to advanced functions at a price range starting from Rs 8,000 onwards.
Agencies
Saturday, July 18, 2009
Will Cisco layoff another 600+ jobs?
Another round of employees at Cisco Systems reportedly got pink slips Thursday, as the company laid off several hundred employees as part of its plan to cut costs and realign its business.
The Wall Street Journal reported Friday that between 600 and 700 Cisco employees were laid off at the company's headquarters in San Jose, Calif. The company also cut jobs at branch offices in other parts of the U.S. The Wall Street Journal cited sources close to the company.
A spokesman for the company told the Wall Street Journal that Cisco was "doing everything possible to minimize the impact on employees affected by the limited restructuring."
Like all companies, Cisco, which makes networking equipment that runs the Internet and provides communications for large companies, has seen sales slump as a result of the global recession. The company said earlier this year that it would likely cut between 1,500 and 2,000 jobs as it realigned its business to focus on newer more profitable business segments. The cuts were expected to be completed at the end of the company's fiscal year, which ends this month.
In February, Cisco said it cut about 250 jobs at its San Jose headquarters. Cisco had 66,558 employees at the end of April. Despite the cuts, Cisco's CEO John Chambers has said publicly that he believes the worst of the recession is over. But he noted that it could take some time before spending returns to high levels. Wall Street will be watching the company's next earnings call very carefully to see signs that the bottom has been reached. Cisco will report fiscal fourth quarter and end of year earnings on August 5 after the market closes.
CNet.com
The Wall Street Journal reported Friday that between 600 and 700 Cisco employees were laid off at the company's headquarters in San Jose, Calif. The company also cut jobs at branch offices in other parts of the U.S. The Wall Street Journal cited sources close to the company.
A spokesman for the company told the Wall Street Journal that Cisco was "doing everything possible to minimize the impact on employees affected by the limited restructuring."
Like all companies, Cisco, which makes networking equipment that runs the Internet and provides communications for large companies, has seen sales slump as a result of the global recession. The company said earlier this year that it would likely cut between 1,500 and 2,000 jobs as it realigned its business to focus on newer more profitable business segments. The cuts were expected to be completed at the end of the company's fiscal year, which ends this month.
In February, Cisco said it cut about 250 jobs at its San Jose headquarters. Cisco had 66,558 employees at the end of April. Despite the cuts, Cisco's CEO John Chambers has said publicly that he believes the worst of the recession is over. But he noted that it could take some time before spending returns to high levels. Wall Street will be watching the company's next earnings call very carefully to see signs that the bottom has been reached. Cisco will report fiscal fourth quarter and end of year earnings on August 5 after the market closes.
CNet.com
Wednesday, July 15, 2009
Now pay your bills through an SMS
Making a payment can just be an SMS away, thanks to the latest offering by mChek that allows consumers to make payments through their mobile phones. mChek, a company that has developed several patent-pending applications in the areas of security and banking announced the launch of mChek/Payment.
mChek/Payment enables consumers to shop with their mobile phones in a convenient and safe manner, either across the counter or with remote merchants. The service enables consumers to easily link their mobile phone with their existing credit card without any software to be installed on their mobile, and subsequently transact on the Internet, call centers or over a simple SMS.
Telecom operator Bharti Airtel has signed up with mChek to offer its post paid subscribers in Karnataka, to make payments by using this application. "Our consistent focus on innovation has enabled us to connect with customers strongly. Services like mChek revolve around Airtel's philosophy to delight customers with newer technologies," said Venkatesh V, CEO, Mobile Services, Bharti Airtel, Karnataka.
BIGFlix.com, a part of Reliance BIG Entertainment, an online and offline movie rental service has also joined hands with mChek to enhance its value proposition for its customers. Kamal Gianchandani, Chief Operating Officer, BIGFlix.com, said, "Today the mobile platform is the fastest growing platform and the most personalized form of marketing to reach customers. Our partnership with mChek will definitely get us one step closer to our customers and ensure faster and convenient value added services."
Through this new application, mChek is all set to transform the way people live by making use of electronic money. Do you know 'How mChek transformed the lives of these people?'
Agencies
mChek/Payment enables consumers to shop with their mobile phones in a convenient and safe manner, either across the counter or with remote merchants. The service enables consumers to easily link their mobile phone with their existing credit card without any software to be installed on their mobile, and subsequently transact on the Internet, call centers or over a simple SMS.
Telecom operator Bharti Airtel has signed up with mChek to offer its post paid subscribers in Karnataka, to make payments by using this application. "Our consistent focus on innovation has enabled us to connect with customers strongly. Services like mChek revolve around Airtel's philosophy to delight customers with newer technologies," said Venkatesh V, CEO, Mobile Services, Bharti Airtel, Karnataka.
BIGFlix.com, a part of Reliance BIG Entertainment, an online and offline movie rental service has also joined hands with mChek to enhance its value proposition for its customers. Kamal Gianchandani, Chief Operating Officer, BIGFlix.com, said, "Today the mobile platform is the fastest growing platform and the most personalized form of marketing to reach customers. Our partnership with mChek will definitely get us one step closer to our customers and ensure faster and convenient value added services."
Through this new application, mChek is all set to transform the way people live by making use of electronic money. Do you know 'How mChek transformed the lives of these people?'
Agencies
Sunday, July 12, 2009
Has Siemens IT arm sacked over 500 as Union claims?
IT firm Siemens Information Systems, a unit of German conglomerate Siemens, today said it has laid off 128 employees as part of its cost cutting measures, debunking union's claim that 500 employees had lost jobs.
The IT-ITeS union UNITES India said the number of employees laid off by the company could be around 500. It added that Siemens is laying off its employees in Bangalore violating the Industrial Dispute Act.
When contacted SISL spokesperson said, "As a part of our cost-cutting initiatives, we have released only 128 employees from one of the business units."
UNITES Professionals India General Secretary Karthik Shekhar said, "The figures provided by the company does not include the number of employees who were on contract. In the last one month, the company has laid off more than 128 employees."
SISL has over 5,500 employees in the country. The union has also written to the headquarters of the firm in Germany.
About compensating the employees, the company said it has already compensated the affected employees higher than the contractual terms.
AGENCIES
Agencies
The IT-ITeS union UNITES India said the number of employees laid off by the company could be around 500. It added that Siemens is laying off its employees in Bangalore violating the Industrial Dispute Act.
When contacted SISL spokesperson said, "As a part of our cost-cutting initiatives, we have released only 128 employees from one of the business units."
UNITES Professionals India General Secretary Karthik Shekhar said, "The figures provided by the company does not include the number of employees who were on contract. In the last one month, the company has laid off more than 128 employees."
SISL has over 5,500 employees in the country. The union has also written to the headquarters of the firm in Germany.
About compensating the employees, the company said it has already compensated the affected employees higher than the contractual terms.
AGENCIES
Agencies
Friday, July 3, 2009
Will India IT sector miss export target of $60 bn by FY10?
India's software sector is likely to miss the much-touted target of touching 60 billion dollar exports by FY10, due to
unprecedented slowdown in key markets like the US and Europe, IT industry body Nasscom said.
"... the aspiration of $60 billion by December 2010 is likely to be delayed by at least three to four quarters due to unprecedented slowdown in 2009 in key markets, particularly the US and Europe," a Nasscom-McKinsey report said.
The technology and business services industry grew substantially to $52 billion in 2008 including $12 billion in the domestic segment.
Now with the financial meltdown taking its toll, the software and services revenue outlook has been revised downwards.
Nasscom had earlier scaled down the growth rate for software exports to 16-17 per cent in FY09 as against 21-24 per cent announced earlier.
However, the report -- Perspective 2020 -- said the future of the IT industry remains secure in the medium to long term, even in the face of current macro-economic trends.
Agencies
unprecedented slowdown in key markets like the US and Europe, IT industry body Nasscom said.
"... the aspiration of $60 billion by December 2010 is likely to be delayed by at least three to four quarters due to unprecedented slowdown in 2009 in key markets, particularly the US and Europe," a Nasscom-McKinsey report said.
The technology and business services industry grew substantially to $52 billion in 2008 including $12 billion in the domestic segment.
Now with the financial meltdown taking its toll, the software and services revenue outlook has been revised downwards.
Nasscom had earlier scaled down the growth rate for software exports to 16-17 per cent in FY09 as against 21-24 per cent announced earlier.
However, the report -- Perspective 2020 -- said the future of the IT industry remains secure in the medium to long term, even in the face of current macro-economic trends.
Agencies
Tuesday, June 30, 2009
Will broadband, mobile be key drivers to economic growth?
Access to affordable high-speed Internet and mobile phone service are key to economic growth and job creation in developing countries, the World Bank said in a report.
The report, Information and Communications for Development 2009, found that for every 10 percentage-point increase in high-speed Internet connections there is an increase in economic growth of 1.3 percentage points.
"Internet users in developing countries increased tenfold from 2000 to 2007, and there are now over four billion mobile phone subscribers in developing countries," said Mohsen Khalil, World Bank group director for global information and communication technologies.
"These technologies offer tremendous opportunities," Khalil said. "Governments can work with the private sector to accelerate rollout of broadband networks, and to extend access to low-income consumers."
The report identified the mobile platform as the "single most powerful way to reach and deliver public and private services to hundreds of millions of people in remote and rural areas across the developing world."
Broadband provides the basis for local information technology (IT) services industries which create youth employment, increase productivity and exports, and promote social inclusion, it said.
"Currently though, few people in developing economies have access to broadband networks," the report said. "In 2007, an average of less than five percent of the population of low-income economies was connected to broadband networks
, and that was mostly in urban centers."
"Access to broadband completes the information foundation for a modern economy and should be a priority in national development plans," said Katherine Sierra, World Bank vice president for sustainable development.
"Governments can play a key role in expanding broadband access by policies and incentives that encourage competition and private investment," she said.
The World Bank supports information and communications technology projects in more than 100 countries with a portfolio of more than three billion dollars.
Agencies
The report, Information and Communications for Development 2009, found that for every 10 percentage-point increase in high-speed Internet connections there is an increase in economic growth of 1.3 percentage points.
"Internet users in developing countries increased tenfold from 2000 to 2007, and there are now over four billion mobile phone subscribers in developing countries," said Mohsen Khalil, World Bank group director for global information and communication technologies.
"These technologies offer tremendous opportunities," Khalil said. "Governments can work with the private sector to accelerate rollout of broadband networks, and to extend access to low-income consumers."
The report identified the mobile platform as the "single most powerful way to reach and deliver public and private services to hundreds of millions of people in remote and rural areas across the developing world."
Broadband provides the basis for local information technology (IT) services industries which create youth employment, increase productivity and exports, and promote social inclusion, it said.
"Currently though, few people in developing economies have access to broadband networks," the report said. "In 2007, an average of less than five percent of the population of low-income economies was connected to broadband networks
, and that was mostly in urban centers."
"Access to broadband completes the information foundation for a modern economy and should be a priority in national development plans," said Katherine Sierra, World Bank vice president for sustainable development.
"Governments can play a key role in expanding broadband access by policies and incentives that encourage competition and private investment," she said.
The World Bank supports information and communications technology projects in more than 100 countries with a portfolio of more than three billion dollars.
Agencies
Saturday, June 13, 2009
GP test market expected to reach Rs 6,692.5 million by 2011
The growing trend of the telecom market has paved way for the general purpose (GP) test equipment industry. According to the analysis from the Growth Partnership Company, Frost and Sullivan, the Indian GP test equipment market has earned revenues over Rs 4,346.50 million in 2007 and is expected to reach Rs 6,692.5 million by 2011.
The GP test equipment market is employed for a wide range of products including the research and development (R&D), manufacturing to installation and maintenance (I&M). The cost advantages and availability of skilled professionals have transformed India into a R&D hub for various industries. A vast number of companies from the entire world are investing in the country, which is aiding the market of GP test equipment.
"As security concerns assume the limelight in the wake of the terror threats and security concerns facing the country, an enormous amount has been budgeted for defense spending, which includes communication technologies," says Deepa Doraiswamy, Frost & Sullivan Program Manager. "A decent proportion of the spending goes into procuring test equipment, which mostly includes general purpose (GP) test equipment, and this is expected to create good opportunities in the ensuing years for the GP test equipment market."
Further, the customer support and the brand equity have become the determining factors for the success of the GP test Equipment market. Most of the test vendors have allocated 10 to 15 percent of their revenues to R&D, which result in the emergence of multi-functional instruments that integrate the functions of diverse equipments into one, marking the end of stand-alone products.
Moreover, the expansion of communication networks across the country is facilitating the GP test equipment such as the spectrum analyzers and the network analyzers. With the increasing penetration of mobile phones into the rural zones, the demand for the GP testers is on rise.
However, there are some concerns associated with the GP market, which need to be addressed. "Continuous product improvement with new features demonstrating cutting-edge technology remains the challenging aspiration for GP test vendors to gain market share," says Doraiswamy. "They must fine tune their products and make feature additions and modifications to outpace competition. Participants must also cater to the demand for customized products, identifying the specific end user needs across all end user segments," she adds.
SiliconIndia
The GP test equipment market is employed for a wide range of products including the research and development (R&D), manufacturing to installation and maintenance (I&M). The cost advantages and availability of skilled professionals have transformed India into a R&D hub for various industries. A vast number of companies from the entire world are investing in the country, which is aiding the market of GP test equipment.
"As security concerns assume the limelight in the wake of the terror threats and security concerns facing the country, an enormous amount has been budgeted for defense spending, which includes communication technologies," says Deepa Doraiswamy, Frost & Sullivan Program Manager. "A decent proportion of the spending goes into procuring test equipment, which mostly includes general purpose (GP) test equipment, and this is expected to create good opportunities in the ensuing years for the GP test equipment market."
Further, the customer support and the brand equity have become the determining factors for the success of the GP test Equipment market. Most of the test vendors have allocated 10 to 15 percent of their revenues to R&D, which result in the emergence of multi-functional instruments that integrate the functions of diverse equipments into one, marking the end of stand-alone products.
Moreover, the expansion of communication networks across the country is facilitating the GP test equipment such as the spectrum analyzers and the network analyzers. With the increasing penetration of mobile phones into the rural zones, the demand for the GP testers is on rise.
However, there are some concerns associated with the GP market, which need to be addressed. "Continuous product improvement with new features demonstrating cutting-edge technology remains the challenging aspiration for GP test vendors to gain market share," says Doraiswamy. "They must fine tune their products and make feature additions and modifications to outpace competition. Participants must also cater to the demand for customized products, identifying the specific end user needs across all end user segments," she adds.
SiliconIndia
Friday, June 5, 2009
Is Wal-Mart set to hire over 22,000 people in US?
Retail giant Wal-Mart Stores will hire over 22,000 people this year, a move that will bring cheer to the country’s strained labour market grappling with rising unemployment woes. The retailer, which is one of the least unscathed entities amid the financial turmoil, would be recruiting people for its new and expanded stores nationwide. Wal-Mart has said it would “create more than 22,000 jobs in 2009 to staff new or expanded stores in the US”.
The company would be taking people for positions including store management, pharmacists, human resource managers, customer service associates, cashiers and sales associates. In a statement on Thursday, the retailer said it would create over 1,000 jobs in several individual states. Wal-Mart would generate nearly “1,300 jobs in Arizona; 1,000 jobs in California; 1,300 jobs in Florida; 1,500 jobs in Michigan; 1,200 jobs in New Jersey; 1,000 jobs in South Carolina; 1,200 jobs in Utah and 1,100 in Virginia,” it said.
Last october, Wal-Mart announced plans to open 142 to 157 new or expanded stores in the US. Eduardo Castro-Wright, who is vicechairman of Wal-Mart said the firm is proud to create quality jobs for thousands of Americans during this tough economic time.
“Job creation is just one way in which we’re working hard every day to help people across this country live better,” Castro-Wright noted.
Wal-Mart along with Indian business group Bharti opened their first store in India last week. The joint venture between Bharti Enterprises and Wal-Mart Stores Inc was inked in 2007.
Rattled by the raging economic crisis, the US has seen massive job losses in recent months and the official unemployment rate is well above 9%.
The jobless rate has been on the rise as companies have resorted to trimming their workforce as part of cost-cutting measures. US Federal Reserve chairman Ben S Bernanke on Wednesday said more number of jobs could be lost in the next few months. Wal-Mart has presence in many countries and employs more than 2.1 million associates worldwide.
Agencies
The company would be taking people for positions including store management, pharmacists, human resource managers, customer service associates, cashiers and sales associates. In a statement on Thursday, the retailer said it would create over 1,000 jobs in several individual states. Wal-Mart would generate nearly “1,300 jobs in Arizona; 1,000 jobs in California; 1,300 jobs in Florida; 1,500 jobs in Michigan; 1,200 jobs in New Jersey; 1,000 jobs in South Carolina; 1,200 jobs in Utah and 1,100 in Virginia,” it said.
Last october, Wal-Mart announced plans to open 142 to 157 new or expanded stores in the US. Eduardo Castro-Wright, who is vicechairman of Wal-Mart said the firm is proud to create quality jobs for thousands of Americans during this tough economic time.
“Job creation is just one way in which we’re working hard every day to help people across this country live better,” Castro-Wright noted.
Wal-Mart along with Indian business group Bharti opened their first store in India last week. The joint venture between Bharti Enterprises and Wal-Mart Stores Inc was inked in 2007.
Rattled by the raging economic crisis, the US has seen massive job losses in recent months and the official unemployment rate is well above 9%.
The jobless rate has been on the rise as companies have resorted to trimming their workforce as part of cost-cutting measures. US Federal Reserve chairman Ben S Bernanke on Wednesday said more number of jobs could be lost in the next few months. Wal-Mart has presence in many countries and employs more than 2.1 million associates worldwide.
Agencies
Friday, May 29, 2009
Will telecom BPO revenue to touch $2 Billion in 2012?
The outsourcing revenues from the telecom sector in India are set to grow at a CAGR of 31 percent to nearly $2 billion in 2012, says a report by Ernst & Young in a first of a kind study on potential of domestic BPO industry. The telecom industry has been growing fast in spite of recession adding around 10 million subscribers every month with a subscriber base of 375 million in 2008-09.
In 2005, Bharti Airtel, which has been growing at a Compound Annual Growth Rate [CAGR] of 41 percent in last two years, started the trend of outsourcing its call center to other global companies like Mphasis, IBM Daksh, Teletech and HTMT at $272.2 million. Since then there is pressure on other telecom providers to do the same. "This domain (telecom) has already witnessed a couple of large outsourcing deals in recent months and the trend is expected to continue," said Ernst & Young partner Milan Sheth. In 2008, Telecom revenues added upto 50 percent of the domestic BPO revenues at $661 million.
BPO is also a huge job creator for telecom industry. According to the study, in 2008 telecom BPO hired over 1,22,440 people and by 2012 this number is expected to double. Banking is the second biggest employment generator for domestic BPOs. The banking sector employed around 70,100 people in 2008 and by 2012 this is projected to go up to 2,25,900. The two sectors contribute 80 percent of the domestic BPO revenues and is expected that revenues will reach $6 billion by 2012.
According to the report the key driver for BPOs in telecom is demand for customer care and sales and marketing services.
Agencies
In 2005, Bharti Airtel, which has been growing at a Compound Annual Growth Rate [CAGR] of 41 percent in last two years, started the trend of outsourcing its call center to other global companies like Mphasis, IBM Daksh, Teletech and HTMT at $272.2 million. Since then there is pressure on other telecom providers to do the same. "This domain (telecom) has already witnessed a couple of large outsourcing deals in recent months and the trend is expected to continue," said Ernst & Young partner Milan Sheth. In 2008, Telecom revenues added upto 50 percent of the domestic BPO revenues at $661 million.
BPO is also a huge job creator for telecom industry. According to the study, in 2008 telecom BPO hired over 1,22,440 people and by 2012 this number is expected to double. Banking is the second biggest employment generator for domestic BPOs. The banking sector employed around 70,100 people in 2008 and by 2012 this is projected to go up to 2,25,900. The two sectors contribute 80 percent of the domestic BPO revenues and is expected that revenues will reach $6 billion by 2012.
According to the report the key driver for BPOs in telecom is demand for customer care and sales and marketing services.
Agencies
Thursday, May 28, 2009
IBM funds $1 billion for APAC IT Projects
IBM announced up to $3 billion funds to finance IT initiatives in key economic stimulus projects in Europe and Asia-Pacific through IBM Global Financing, the company's lending and leasing business segment.
Specifically, it will make available up to $2 billion in financing in Europe and up to $1 billion in the Asia-Pacific region. IBM Global Financing also will extend its North American coverage to include financing for smart technology projects in Canada, according to a statement.
The stimulus financing will mainly target enterprises and municipalities looking to implement technology projects consisting of a majority portion of IBM hardware, software, and technology services components. Financing also can be applied to non-IBM technology as part of a larger IBM solution.
The financing will help organizations move ahead with IT projects in 2009, while awaiting government funding, to build the technological and environmental infrastructure of the 21st century.
The financing could be in the form of:
* Low rates and flexible financing options
* Deferred payment plans
* Enterprise financing facilities that offer structured lines of credit
* Specialized project financing packages that allow clients to align payment streams to anticipated benefits throughout the project
The recession is going to drive many organizations, public and private, to make transformational changes in their IT environment. However, without access to the correct financing offerings, a significant set of opportunities will be lost and society-wide projects, like smart grid, will be substantially delayed," said David Mitchell, SVP of UK-based IT research firm, Ovum.
It must be recalled here that IBM China Research launched a new industry solution lab in China focusing on the development of healthcare IT solutions and released four software packages that could help hospitals establish electronic patient records at reduced costs, last month. The Chinese government has announced a plan to invest CNY 850 billion over the next three years to provide every village with a medical clinic and at least one hospital for every county by 2011. The plan includes funding for electronic patient records systems that can be shared by different hospitals around the country.
CXOtoday
Specifically, it will make available up to $2 billion in financing in Europe and up to $1 billion in the Asia-Pacific region. IBM Global Financing also will extend its North American coverage to include financing for smart technology projects in Canada, according to a statement.
The stimulus financing will mainly target enterprises and municipalities looking to implement technology projects consisting of a majority portion of IBM hardware, software, and technology services components. Financing also can be applied to non-IBM technology as part of a larger IBM solution.
The financing will help organizations move ahead with IT projects in 2009, while awaiting government funding, to build the technological and environmental infrastructure of the 21st century.
The financing could be in the form of:
* Low rates and flexible financing options
* Deferred payment plans
* Enterprise financing facilities that offer structured lines of credit
* Specialized project financing packages that allow clients to align payment streams to anticipated benefits throughout the project
The recession is going to drive many organizations, public and private, to make transformational changes in their IT environment. However, without access to the correct financing offerings, a significant set of opportunities will be lost and society-wide projects, like smart grid, will be substantially delayed," said David Mitchell, SVP of UK-based IT research firm, Ovum.
It must be recalled here that IBM China Research launched a new industry solution lab in China focusing on the development of healthcare IT solutions and released four software packages that could help hospitals establish electronic patient records at reduced costs, last month. The Chinese government has announced a plan to invest CNY 850 billion over the next three years to provide every village with a medical clinic and at least one hospital for every county by 2011. The plan includes funding for electronic patient records systems that can be shared by different hospitals around the country.
CXOtoday
Friday, May 22, 2009
Is HP set to layoff 6,400 employees in 2010?
US computer giant Hewlett-Packard reported a 17-per cent fall in quarterly net profit and said it plans to cut two per cent of its workforce, or nearly 6,400 workers, over the next year.
HP said net profit fell to $1.7 billion, or 86 cents per share, in the second quarter of its fiscal year from $2.1 billion, or 87 cents per share, a year ago, in line with the expectations of Wall Street analysts.
The Palo Alto, California-based company, the world's largest manufacturer of personal computers, said revenue was down three per cent in the quarter which ended on April 30 to $27.4 billion.
Chief financial officer Cathy Lesjak announced the planned layoffs in a conference call with analysts after the release of the results.
“We will be taking some targeted action to structurally change and improve the effectiveness of our product businesses,” she said.
“These actions will result in the elimination of approximately two per cent of the HP workforce as we further streamline and simplify our organization and supply chain. These actions will be implemented over the next 12 months.”
The only bright spot for HP in the quarter was in its services business, which notched up an operating profit of $1.17 billion in the quarter due to its purchase last year of EDS. “Our services business continued to deliver strong profitability with an increased deal pipeline and the EDS integration tracking ahead of schedule,” said HP chairman and chief executive Mark Hurd.
HP said revenue from its enterprise storage and servers division fell 28 per cent to $3.5 billion while software revenue declined 15 per cent to $880 million. Computer shipments were flat in a “challenging environment” and the division saw revenue fall 19 per cent to $8.2 billion. Revenue from laptop computers was down 13 per cent while desktop computer revenue fell 24 per cent.
Operating profit for the division fell to $374 million from $544 million a year ago. The imaging and printing group saw revenue decline by 23 per cent to $5.9 billion and operating profit fall to $1.1 billion from $1.2 billion a year earlier.
HP said revenue grew nine per cent in the Americas to $12.1 billion and declined by 11 per cent in Europe, the Middle East and Africa to $10.6 billion. Revenue fell 10 per cent in Asia Pacific to $4.7 billion.
HP said it expects third quarter revenue to be flat and full fiscal year revenue to decline by four per cent to five per cent with full-year earnings per share of between $3.76 to $3.88.
Agencies
HP said net profit fell to $1.7 billion, or 86 cents per share, in the second quarter of its fiscal year from $2.1 billion, or 87 cents per share, a year ago, in line with the expectations of Wall Street analysts.
The Palo Alto, California-based company, the world's largest manufacturer of personal computers, said revenue was down three per cent in the quarter which ended on April 30 to $27.4 billion.
Chief financial officer Cathy Lesjak announced the planned layoffs in a conference call with analysts after the release of the results.
“We will be taking some targeted action to structurally change and improve the effectiveness of our product businesses,” she said.
“These actions will result in the elimination of approximately two per cent of the HP workforce as we further streamline and simplify our organization and supply chain. These actions will be implemented over the next 12 months.”
The only bright spot for HP in the quarter was in its services business, which notched up an operating profit of $1.17 billion in the quarter due to its purchase last year of EDS. “Our services business continued to deliver strong profitability with an increased deal pipeline and the EDS integration tracking ahead of schedule,” said HP chairman and chief executive Mark Hurd.
HP said revenue from its enterprise storage and servers division fell 28 per cent to $3.5 billion while software revenue declined 15 per cent to $880 million. Computer shipments were flat in a “challenging environment” and the division saw revenue fall 19 per cent to $8.2 billion. Revenue from laptop computers was down 13 per cent while desktop computer revenue fell 24 per cent.
Operating profit for the division fell to $374 million from $544 million a year ago. The imaging and printing group saw revenue decline by 23 per cent to $5.9 billion and operating profit fall to $1.1 billion from $1.2 billion a year earlier.
HP said revenue grew nine per cent in the Americas to $12.1 billion and declined by 11 per cent in Europe, the Middle East and Africa to $10.6 billion. Revenue fell 10 per cent in Asia Pacific to $4.7 billion.
HP said it expects third quarter revenue to be flat and full fiscal year revenue to decline by four per cent to five per cent with full-year earnings per share of between $3.76 to $3.88.
Agencies
Thursday, May 14, 2009
Will FII investment touch $2 billion-mark in 2009?
Investment by Foreign Institutional Investors in Indian equities has touched the two billion dollar-mark (nearly Rs 10,000 crore) so far this year, which includes a record single day net purchase of Rs 4,085 crore.
According to the latest available data on SEBI website, FIIs made net purchases worth $2 two billion or about Rs 9,973 crore so far in 2009, with the stock market seeing major investments in the past two weeks.
"FIIs have been in the buying mode for the last couple of months and after their initial sell-off in early 2009, have turned net buyers of Indian equities year-to-date. Positive trend is likely to continue well into FY'10," Angel Broking Head of Research Hitesh Agrawal said.
Yesterday, FIIs put in as much as Rs 4,085 crore ($838 million) in a single day with an over Rs 2,000 crore investment in shares of realty firms DLF alone.
Since the beginning of the new fiscal year, FIIs have started putting money in domestic stocks, including blue-chips like Housing Development Finance Corporation, private sector lender HDFC Bank and realty major DLF.
In May alone, FIIs made gross purchases of equities worth Rs 27,872 crore and sold shares of Rs 18,255 crore, resulting in a net investment of Rs 9,616 crore ($1.93 billion), as per the data available with SEBI.
Three foreign fund houses, Deutsche Securities Mauritius, Euro Pacific Growth Fund and Copthall Mauritius had purchased a total 9.15 crore shares representing 5.39 per cent in DLF for Rs 2,106.1 crore in open market transactions yesterday.
"We believe the positive trend will continue well into FY 2010. Notably, after having reduced their stake in many blue-chip companies in FY 2009 on account of the global liquidity shortage and economic slowdown concerns, FIIs are now coming back into market," Agrawal added.
The previous week also recorded the biggest weekly infusion by FIIs in the current calendar year. With a bulk investment of Rs 1,491 crore in a single day, FIIs remained net buyers in equities in the remaining days.
FIIs have turned net buyers from last week of April, after pulling out a hefty Rs 52,987 crore from Indian stock markets in 2008, which saw Sensex plunging 51 per cent.
Earlier, two Foreign fund houses Capital Group and Sansar Capital Mauritius bought HDFC shares worth Rs 316 crore, while Deutsche Securities bought Rs 422 crore shares of HDFC Bank.
Agrawal said if no further bad news comes, the world wide the markets would revive by 2010 if FII buying spree continues.
"Pre-empting this, FIIs will look at increasing their stakes in firms that are best placed to ride the recovery and large-cap stocks are preferred ones to begin with," he added.
Agencies
According to the latest available data on SEBI website, FIIs made net purchases worth $2 two billion or about Rs 9,973 crore so far in 2009, with the stock market seeing major investments in the past two weeks.
"FIIs have been in the buying mode for the last couple of months and after their initial sell-off in early 2009, have turned net buyers of Indian equities year-to-date. Positive trend is likely to continue well into FY'10," Angel Broking Head of Research Hitesh Agrawal said.
Yesterday, FIIs put in as much as Rs 4,085 crore ($838 million) in a single day with an over Rs 2,000 crore investment in shares of realty firms DLF alone.
Since the beginning of the new fiscal year, FIIs have started putting money in domestic stocks, including blue-chips like Housing Development Finance Corporation, private sector lender HDFC Bank and realty major DLF.
In May alone, FIIs made gross purchases of equities worth Rs 27,872 crore and sold shares of Rs 18,255 crore, resulting in a net investment of Rs 9,616 crore ($1.93 billion), as per the data available with SEBI.
Three foreign fund houses, Deutsche Securities Mauritius, Euro Pacific Growth Fund and Copthall Mauritius had purchased a total 9.15 crore shares representing 5.39 per cent in DLF for Rs 2,106.1 crore in open market transactions yesterday.
"We believe the positive trend will continue well into FY 2010. Notably, after having reduced their stake in many blue-chip companies in FY 2009 on account of the global liquidity shortage and economic slowdown concerns, FIIs are now coming back into market," Agrawal added.
The previous week also recorded the biggest weekly infusion by FIIs in the current calendar year. With a bulk investment of Rs 1,491 crore in a single day, FIIs remained net buyers in equities in the remaining days.
FIIs have turned net buyers from last week of April, after pulling out a hefty Rs 52,987 crore from Indian stock markets in 2008, which saw Sensex plunging 51 per cent.
Earlier, two Foreign fund houses Capital Group and Sansar Capital Mauritius bought HDFC shares worth Rs 316 crore, while Deutsche Securities bought Rs 422 crore shares of HDFC Bank.
Agrawal said if no further bad news comes, the world wide the markets would revive by 2010 if FII buying spree continues.
"Pre-empting this, FIIs will look at increasing their stakes in firms that are best placed to ride the recovery and large-cap stocks are preferred ones to begin with," he added.
Agencies
Will BT cuts 15,000 more jobs in 2009?
Britain's BT Group cut its dividend and said a further 15,000 jobs would go after a 1.58 billion pound ($2.4 billion) write down and restructuring at its Global Services unit drove it to a fourth quarter loss.
The group, which had for years looked for growth at its Global Services unit which supplies the IT needs of multinational companies, also said it would almost double its pension contributions to 525 million pounds ($794.1 million) a year.
BT, which has twice previously in the past year warned about profits at the Global Services unit, said earnings before interest, tax, depreciation and amortisation and contract and financial review charges were 1.35 billion pounds, down 14 percent.
Profit before tax on an adjusted basis was down 40 percent and on a reported basis showed a 1.28 billion pound loss.
To help meet its increased pension obligations, BT cut its final dividend to 1.1 pence to give a full year dividend of 6.5 pence, which was down 59 percent on last year.
The pension contributions will almost double from the previous 280 million pound annual payment to 525 million pounds a year for the next three financial years.
BT has been engaged in a three-yearly pension review to establish the size of its deficit and what it should contribute to the scheme on an annual basis, based on its asset values and liabilities.
The last review in 2006 put BT's deficit at 3.4 billion pounds and set annual contributions on a 10-year recovery plan at 280 million pounds.
BT said on Thursday the contributions would rise to 525 million pounds but did not reveal the new deficit from the three-year review.
A leading pensions expert said on Wednesday that BT's pension deficit now stood at 11 billion pounds
BT said its triennial pension funding valuation was at an advanced state of completion. It did give its pension position at March 31 on an IAS 19 accounting basis as a deficit of 2.9 billion pounds net of tax, compared with a surplus of 2 billion pounds last year.
"Three out of four of BT's lines of business have performed well in spite of fierce competition and the global economic downturn," Chief Executive Ian Livingston said.
"However this achievement has been overshadowed by the unacceptable performance of BT Global Services and the resulting charges we have taken."
Agencies
The group, which had for years looked for growth at its Global Services unit which supplies the IT needs of multinational companies, also said it would almost double its pension contributions to 525 million pounds ($794.1 million) a year.
BT, which has twice previously in the past year warned about profits at the Global Services unit, said earnings before interest, tax, depreciation and amortisation and contract and financial review charges were 1.35 billion pounds, down 14 percent.
Profit before tax on an adjusted basis was down 40 percent and on a reported basis showed a 1.28 billion pound loss.
To help meet its increased pension obligations, BT cut its final dividend to 1.1 pence to give a full year dividend of 6.5 pence, which was down 59 percent on last year.
The pension contributions will almost double from the previous 280 million pound annual payment to 525 million pounds a year for the next three financial years.
BT has been engaged in a three-yearly pension review to establish the size of its deficit and what it should contribute to the scheme on an annual basis, based on its asset values and liabilities.
The last review in 2006 put BT's deficit at 3.4 billion pounds and set annual contributions on a 10-year recovery plan at 280 million pounds.
BT said on Thursday the contributions would rise to 525 million pounds but did not reveal the new deficit from the three-year review.
A leading pensions expert said on Wednesday that BT's pension deficit now stood at 11 billion pounds
BT said its triennial pension funding valuation was at an advanced state of completion. It did give its pension position at March 31 on an IAS 19 accounting basis as a deficit of 2.9 billion pounds net of tax, compared with a surplus of 2 billion pounds last year.
"Three out of four of BT's lines of business have performed well in spite of fierce competition and the global economic downturn," Chief Executive Ian Livingston said.
"However this achievement has been overshadowed by the unacceptable performance of BT Global Services and the resulting charges we have taken."
Agencies
Tuesday, May 12, 2009
Has software piracy in India gone up to $2.7 billion?
Global software makers lost an estimated $2.76 billion to illegal software trade in India, a study.
According to a BSA-IDC Global Software Piracy Study, even as piracy in the country has seen a one point drop to 68 per cent in 2008, it has resulted in loss of billions of dollars for software majors like Adobe, Autodesk and Microsoft globally.
"With the various initiatives taken by the government and the firms, piracy has gone down to 68 per cent and in the coming year also, we expect this to continue as people become more informed about licenced software," BSA Vice-President and Regional Director (Asia-Pacific) Jeffrey J Hardee told reporters afetr releasing the study.
The dollar-rupee fluctuation resulted in the increase in value terms.
Hardee also said the rapidly growing user base for assembled PC units and easy availability of pirated software on the Internet, is a major concern.
However "with software firms offering services to the SMBs and more portable PCs being shipped, piracy should come down," he added.
The study noted a rise in piracy levels globally. While it has gone up to 41 per cent globally from 38 per cent last year, piracy also remains high in the Central and Eastern Europe (66 per cent), Latin America (65 per cent) and Asia-Pacific (61 per cent).
Agencies
US companies, cut, jobs, layoffs, US, tightens, H-1B visa, rules, Indians,professionals, aspiring, Washington, stricter screening,misuse,IT companies, India,technology, TCS, Infosys, Wipro,
Agencies
According to a BSA-IDC Global Software Piracy Study, even as piracy in the country has seen a one point drop to 68 per cent in 2008, it has resulted in loss of billions of dollars for software majors like Adobe, Autodesk and Microsoft globally.
"With the various initiatives taken by the government and the firms, piracy has gone down to 68 per cent and in the coming year also, we expect this to continue as people become more informed about licenced software," BSA Vice-President and Regional Director (Asia-Pacific) Jeffrey J Hardee told reporters afetr releasing the study.
The dollar-rupee fluctuation resulted in the increase in value terms.
Hardee also said the rapidly growing user base for assembled PC units and easy availability of pirated software on the Internet, is a major concern.
However "with software firms offering services to the SMBs and more portable PCs being shipped, piracy should come down," he added.
The study noted a rise in piracy levels globally. While it has gone up to 41 per cent globally from 38 per cent last year, piracy also remains high in the Central and Eastern Europe (66 per cent), Latin America (65 per cent) and Asia-Pacific (61 per cent).
Agencies
US companies, cut, jobs, layoffs, US, tightens, H-1B visa, rules, Indians,professionals, aspiring, Washington, stricter screening,misuse,IT companies, India,technology, TCS, Infosys, Wipro,
Agencies
Sunday, April 19, 2009
Is IBM no longer keen on buying Sun anymore?
IBM is no longer interested in buying smaller rival Sun Microsystems Inc at any price, CNBC reported, although many investors appear to believe a deal was still possible.
Citing sources close to Sun, CNBC said the high-end computer maker had approached International Business Machines Corp earlier this week to ask it to return to the negotiating table, indicating that Sun would be flexible about price.
But IBM has decided it is not interested in any further negotiations with Sun, the cable news network reported, citing sources close to IBM. IBM and Sun declined to comment.
IBM had withdrawn a $7 billion offer for Sun earlier this month, after the smaller company rejected the bid of up to $9.40 per share as too low, sources with knowledge of the matter have said.
Shares of Sun were up 4.24 percent at $6.39 after the CNBC report, but lower than before the market opened on Thursday. Sun traded at around $4.97 before talks between the two technology companies were first reported in March.
Avian Securities' head of research, Avi Cohen, said he believed the two sides would talk again.
"If the deal made sense a couple weeks ago, it certainly would still make sense today," he said. "If there was a willingness, which I think there is, if there was a business case, which I think there is, I think they will start up talks."
CNBC said IBM decided against the move after looking at Sun's structured contracts, as well as change of control clauses that would make an acquisition of the company costly.
It also reported that IBM's contacts within the US Justice Department, US Securities and Exchange Commission and the European Union have all advised the company that such a merger could be subject to an antitrust review lasting six to nine months.
Analysts have said a deal may be crucial for Sun's long-term survival as it has been losing market share in servers to IBM and Hewlett-Packard Co, and analysts expect it to report a third straight quarter of losses excluding special items.
Sun, which rose to prominence in the 1990s, had been searching for a buyer for several months, according to bankers.
The Silicon Valley company never fully recovered from the burst of the dot-com bubble burst in the early 2000s, when demand for servers cratered. It has also failed to fully capitalize on its software assets, including its Java software platform.
Agencies
Citing sources close to Sun, CNBC said the high-end computer maker had approached International Business Machines Corp earlier this week to ask it to return to the negotiating table, indicating that Sun would be flexible about price.
But IBM has decided it is not interested in any further negotiations with Sun, the cable news network reported, citing sources close to IBM. IBM and Sun declined to comment.
IBM had withdrawn a $7 billion offer for Sun earlier this month, after the smaller company rejected the bid of up to $9.40 per share as too low, sources with knowledge of the matter have said.
Shares of Sun were up 4.24 percent at $6.39 after the CNBC report, but lower than before the market opened on Thursday. Sun traded at around $4.97 before talks between the two technology companies were first reported in March.
Avian Securities' head of research, Avi Cohen, said he believed the two sides would talk again.
"If the deal made sense a couple weeks ago, it certainly would still make sense today," he said. "If there was a willingness, which I think there is, if there was a business case, which I think there is, I think they will start up talks."
CNBC said IBM decided against the move after looking at Sun's structured contracts, as well as change of control clauses that would make an acquisition of the company costly.
It also reported that IBM's contacts within the US Justice Department, US Securities and Exchange Commission and the European Union have all advised the company that such a merger could be subject to an antitrust review lasting six to nine months.
Analysts have said a deal may be crucial for Sun's long-term survival as it has been losing market share in servers to IBM and Hewlett-Packard Co, and analysts expect it to report a third straight quarter of losses excluding special items.
Sun, which rose to prominence in the 1990s, had been searching for a buyer for several months, according to bankers.
The Silicon Valley company never fully recovered from the burst of the dot-com bubble burst in the early 2000s, when demand for servers cratered. It has also failed to fully capitalize on its software assets, including its Java software platform.
Agencies
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