In an eco-friendly move, Microsoft has announced that its new center at its Redmond headquarters will cut the company's carbon footprint by 12,000 metric tons per year. The Redmond Ridge 1 centre will combine Microsoft's research laboratory servers from individual product groups with the corporate systems that process other data, reports BusinessGreen.com.
According to the software giant, the facility is due online in April 2010 and will provide major power efficiencies. "The opening of Redmond Ridge is a big milestone and represents a real transition point in the company's culture," said Rob Bernard, Chief Environmental Strategist at Microsoft.
The building has been designed to be as energy-efficient as possible, using air heat exchangers to keep the temperature down. Air conditioning starts only if the temperature rises above 75 degrees Fahrenheit. "This facility is a great example of how technology can help improve the energy efficiency of a company's operations," said Bernard.
The move is causing something of a cultural shift at Microsoft, however. Engineers developing new code are physically removed from the servers testing it for the first time. Microsoft has not said how much of its computing it intends to centralize, but is aiming to cut its carbon emissions by 30 percent by 2012.
Agencies
Thursday, September 17, 2009
Will TCS reduce the salary of campus recruits?
IT services company TCS (Tata Consultancy Services) has announced that it would revise the compensation package of campus recruits. Under the changed structure, TCS trainees will no longer be paid the variable component of the compensation - which works out at Rs. 5,000 per month or 19-20 percent of the total annual pay packet of Rs. 3.1 lakh - offered to them during their in-campus recruitment.
Ajoy Mukherjee, Global Head, Human Resources, TCS said, "As part of a compensation restructuring exercise, freshers joining the company this quarter onwards will not be eligible for variable pay during the training period. Restructuring trainees' salaries is being done from the point of view of productivity so that they get accustomed to the fact that variable pay depends on performance."
Last year, the company had made campus offers to 24,885 students. Of this, the company is expecting around 19,000-20,000 students to join. Going by this number, the company is expected to save around Rs. 10 crore per month by altering the variable part of salary for trainees. For six months, the savings would be Rs. 60 crore. Mukherjee said, "The company would be able to take on board all campus recruits in the current fiscal itself."
However, other IT giants like Infosys and Wipro are not fiddling with the compensation package of trainees. Infosys decides on the variables based on a test conducted after 18 weeks of initial training. Mohandas Pai, HR head, Infosys said, "Those who score four out of five are entitled to variables." Wipro claims to pay the variable part to its employees from the beginning of the training period.
Now, it would be interesting to see, what steps these companies take for campus recruitment in next fiscal. TCS is yet to decide on how these campus offers would be made in the next fiscal.
Agencies
Ajoy Mukherjee, Global Head, Human Resources, TCS said, "As part of a compensation restructuring exercise, freshers joining the company this quarter onwards will not be eligible for variable pay during the training period. Restructuring trainees' salaries is being done from the point of view of productivity so that they get accustomed to the fact that variable pay depends on performance."
Last year, the company had made campus offers to 24,885 students. Of this, the company is expecting around 19,000-20,000 students to join. Going by this number, the company is expected to save around Rs. 10 crore per month by altering the variable part of salary for trainees. For six months, the savings would be Rs. 60 crore. Mukherjee said, "The company would be able to take on board all campus recruits in the current fiscal itself."
However, other IT giants like Infosys and Wipro are not fiddling with the compensation package of trainees. Infosys decides on the variables based on a test conducted after 18 weeks of initial training. Mohandas Pai, HR head, Infosys said, "Those who score four out of five are entitled to variables." Wipro claims to pay the variable part to its employees from the beginning of the training period.
Now, it would be interesting to see, what steps these companies take for campus recruitment in next fiscal. TCS is yet to decide on how these campus offers would be made in the next fiscal.
Agencies
Atlast! Facebook finally becomes profitable
Facebook is making enough money to cover its costs and now has 300 million users, the world’s largest social networking site, said on Tuesday, proving the Internet’s newest star industry can be a viable business.
Facebook is now generating enough cash to cover its operating expenses, as well as the capital spending needed to maintain its fast-growing service.
Analysts said this shows the financial viability of Facebook, which has faced questions about its underlying business model, despite its popularity, and was a good sign for a potential initial public offering.
“It’s certainly meaningful to show that this is absolutely the real deal,” said Broadpoint Amtech analyst Ben Schachter. “They are executing. People are spending money on the site.”
Since its creation in a Harvard dorm room five years ago, Facebook has emerged as one of the Internet’s most popular destinations and is increasingly challenging the Web’s established powerhouses like Yahoo and Google.
Facebook unveiled a revamped search engine last month and is currently testing an online payment system. Facebook users have tripled from about 100 million a year ago.
Facebook chief executive Mark Zuckerberg said in a blog post on the company site on Tuesday that Facebook reached its goal of being free cash flow positive in its most recently ended quarter. The company had previously projected reaching the target sometime in 2010.
“This is important to us because it sets Facebook up to be a strong independent service for the long term,” said Zuckerberg in the blog post.
Facebook spokesperson Larry Yu said the free cash flow metric does not include any cash from private investment.
In May, Facebook announced a $200 million investment from Russian investment firm Digital Sky Technologies in a deal that valued the company’s preferred shares at $10 billion.
DST valued Facebook’s common shares at $6.5 billion in a subsequent deal to purchase shares from Facebook employees.
Facebook’s becoming cash flow positive ahead of schedule provides another nugget of data to back up the lofty valuations, and according to one analyst, makes Facebook a more attractive candidate for a potential public offering.
“They can command higher confidence from investors now,” said Collins Stewart analyst Sandeep Aggarwal, who noted that he believes Facebook could go public in the second half of 2010, or in 2011.
Zuckerberg said in May that any IPO is “a few years out.” Facebook did not provide any other financial details on Tuesday. The company has previously said its revenue was on track to grow 70 percent this year.
Facebook board member Mark Andreesen told Reuters earlier this year that the company will surpass $500 million n revenue this year.
Zuckerberg said in his post that the company is exploring ways to make the service perform faster and more efficiently as the number of Facebook users continues to grow.
Agencies
Facebook is now generating enough cash to cover its operating expenses, as well as the capital spending needed to maintain its fast-growing service.
Analysts said this shows the financial viability of Facebook, which has faced questions about its underlying business model, despite its popularity, and was a good sign for a potential initial public offering.
“It’s certainly meaningful to show that this is absolutely the real deal,” said Broadpoint Amtech analyst Ben Schachter. “They are executing. People are spending money on the site.”
Since its creation in a Harvard dorm room five years ago, Facebook has emerged as one of the Internet’s most popular destinations and is increasingly challenging the Web’s established powerhouses like Yahoo and Google.
Facebook unveiled a revamped search engine last month and is currently testing an online payment system. Facebook users have tripled from about 100 million a year ago.
Facebook chief executive Mark Zuckerberg said in a blog post on the company site on Tuesday that Facebook reached its goal of being free cash flow positive in its most recently ended quarter. The company had previously projected reaching the target sometime in 2010.
“This is important to us because it sets Facebook up to be a strong independent service for the long term,” said Zuckerberg in the blog post.
Facebook spokesperson Larry Yu said the free cash flow metric does not include any cash from private investment.
In May, Facebook announced a $200 million investment from Russian investment firm Digital Sky Technologies in a deal that valued the company’s preferred shares at $10 billion.
DST valued Facebook’s common shares at $6.5 billion in a subsequent deal to purchase shares from Facebook employees.
Facebook’s becoming cash flow positive ahead of schedule provides another nugget of data to back up the lofty valuations, and according to one analyst, makes Facebook a more attractive candidate for a potential public offering.
“They can command higher confidence from investors now,” said Collins Stewart analyst Sandeep Aggarwal, who noted that he believes Facebook could go public in the second half of 2010, or in 2011.
Zuckerberg said in May that any IPO is “a few years out.” Facebook did not provide any other financial details on Tuesday. The company has previously said its revenue was on track to grow 70 percent this year.
Facebook board member Mark Andreesen told Reuters earlier this year that the company will surpass $500 million n revenue this year.
Zuckerberg said in his post that the company is exploring ways to make the service perform faster and more efficiently as the number of Facebook users continues to grow.
Agencies
TCS, Wipro and HCL emerge top IT leaders
A recent rating — for global R&D service providers across India, China and Eastern Europe — by Zinnov Management Consulting identifies Wipro, TCS and HCL as market leaders in the overall rating based on components like financial strength and business models, innovation & expertise, people strength and operations.
The rating has also highlighted the impact of recession on the R&D service providers community across all key levers — like contract re-negotiation, increase in sales cycle time, bankruptcy of clients and fears of business continuity risk — which did result in many of them having to reassess and redefine their strategies.
Result of this reassessment has seen core mid-market service providers like Tata Elxsi, Tech Mahindra, Aricent, MindTree, Symphony, Sonata, Global Logic, Polaris and Aditi, moving strongly towards the top-pack and establishing themselves as leaders in specific industry verticals, said the rating.
Pari Natarajan, CEO, Zinnov Management Consulting said, the global economy has witnessed a major reset and is currently observing green shoots of recovery, with Germany, India and China among others showing signs of improvement. “This tectonic shift in the economy has led to numerous changes in the current market dynamics, but one thing that can be safely assumed is the continued growth of interlinkages between global businesses and stronger relationships between service providers and MNCs would only continue to grow in times to come.’’
Vertical specific rankings were also under taken to understand the capabilities of the various service providers in providing turnkey product engineering services in verticals like aerospace & defense, automotive, consumer electronics, healthcare, semi conductors, telecom, & software.
The rating study also found that, R&D offshoring to India, China, Russia and Central & Eastern Europe is expected to grow at 6-7% with India and China continuing to constitute close 90% of the overall market. Though large firms have neither dramatically cut down nor increased their R&D spends. Hence, R&D offshoring to India, China, Russia and CEE is expected to remain flat.
Agencies
The rating has also highlighted the impact of recession on the R&D service providers community across all key levers — like contract re-negotiation, increase in sales cycle time, bankruptcy of clients and fears of business continuity risk — which did result in many of them having to reassess and redefine their strategies.
Result of this reassessment has seen core mid-market service providers like Tata Elxsi, Tech Mahindra, Aricent, MindTree, Symphony, Sonata, Global Logic, Polaris and Aditi, moving strongly towards the top-pack and establishing themselves as leaders in specific industry verticals, said the rating.
Pari Natarajan, CEO, Zinnov Management Consulting said, the global economy has witnessed a major reset and is currently observing green shoots of recovery, with Germany, India and China among others showing signs of improvement. “This tectonic shift in the economy has led to numerous changes in the current market dynamics, but one thing that can be safely assumed is the continued growth of interlinkages between global businesses and stronger relationships between service providers and MNCs would only continue to grow in times to come.’’
Vertical specific rankings were also under taken to understand the capabilities of the various service providers in providing turnkey product engineering services in verticals like aerospace & defense, automotive, consumer electronics, healthcare, semi conductors, telecom, & software.
The rating study also found that, R&D offshoring to India, China, Russia and Central & Eastern Europe is expected to grow at 6-7% with India and China continuing to constitute close 90% of the overall market. Though large firms have neither dramatically cut down nor increased their R&D spends. Hence, R&D offshoring to India, China, Russia and CEE is expected to remain flat.
Agencies
Wednesday, September 16, 2009
Infosys opens training centre in Mysore
It was a wistful Sonia Gandhi who loved her day out on Tuesday. Happy to have “bunked school”, she said she was charmed by the environment, the buildings, trees, flowers and atmosphere at the Infosys campus.
Said the lady who keeps her Congress school in order, “...If I may share a secret, there is another reason for me to be happy to be with you this afternoon, this visit is giving me an opportunity to bunk my school — politics — for a few hours. I honestly want to say I wish I could bunk a few days to be here with you all!” She brought the house down.
The Congress chief was in Mysore to inaugurate the Infosys Global Education Centre-II, which will be a hothouse for next-generation IT professionals. “Social harmony, secure frontiers and communal amity are the need of the hour to create a conducive atmosphere for creation of wealth. Governments should ensure these elements for wealth creators to strive and grow,” she asserted.
Appreciating the efforts of Infosys chief N R Narayana Murthy and his peers for struggling hard and building an empire like Infosys, Sonia said he and his colleagues have shown the world that India can not only lead the IT field, but also guide the rest of the world. “Serious efforts, hard work and determination have made them accomplish this task of building GEC, which is a monument of sorts, withworld class facilities to train IT professionals,” she said.
Sonia said the foundation stone for modern technology was laid way back in 1985 by former Prime Minister Rajiv Gandhi, with the establishment of an earth station. Recollecting Rajiv’s efforts to take the country’s development in science and technology to new heights, Sonia said many in politics had flayed Rajiv Gandhi and were skeptical about his efforts. But he has now been proved right. “He knew that development of communication and transport facilities would lead India into a new world of development,” she said. Then, a telephone was a luxury, now every village has a public call office and telephone network.
Agencies
Said the lady who keeps her Congress school in order, “...If I may share a secret, there is another reason for me to be happy to be with you this afternoon, this visit is giving me an opportunity to bunk my school — politics — for a few hours. I honestly want to say I wish I could bunk a few days to be here with you all!” She brought the house down.
The Congress chief was in Mysore to inaugurate the Infosys Global Education Centre-II, which will be a hothouse for next-generation IT professionals. “Social harmony, secure frontiers and communal amity are the need of the hour to create a conducive atmosphere for creation of wealth. Governments should ensure these elements for wealth creators to strive and grow,” she asserted.
Appreciating the efforts of Infosys chief N R Narayana Murthy and his peers for struggling hard and building an empire like Infosys, Sonia said he and his colleagues have shown the world that India can not only lead the IT field, but also guide the rest of the world. “Serious efforts, hard work and determination have made them accomplish this task of building GEC, which is a monument of sorts, withworld class facilities to train IT professionals,” she said.
Sonia said the foundation stone for modern technology was laid way back in 1985 by former Prime Minister Rajiv Gandhi, with the establishment of an earth station. Recollecting Rajiv’s efforts to take the country’s development in science and technology to new heights, Sonia said many in politics had flayed Rajiv Gandhi and were skeptical about his efforts. But he has now been proved right. “He knew that development of communication and transport facilities would lead India into a new world of development,” she said. Then, a telephone was a luxury, now every village has a public call office and telephone network.
Agencies
Omniture to be acquired by Adobe for $1.8 billion
Adobe Systems Inc plans to pay $1.8 billion for fast-growing business software maker Omniture Inc as the maker of Photoshop and Acrobat looks to turn around declining sales.
Adobe, which announced the deal on Tuesday as it reported lower quarterly sales and profit, has been struggling over the past year as the recession hurt technology spending and customers declined to upgrade older versions of its programs.
The acquisition would give Adobe a new stream of revenue to offset that decline. Omniture charges customers fees based on monthly website traffic, so sales are less sensitive to economic swings than Adobe.
"There is no way Adobe can grow organically. This is a smart move," said Global Equities Research analyst Trip Chowdhry.
Advertising agencies and companies use Omniture's software to analyze how consumers use websites. It is the biggest provider of such services, competing with Google Inc and other smaller players. The vast majority of all professional websites are built with Adobe's Creative Suite line of design software.
Janney Montgomery Scott analyst Sasa Zorovic said Adobe's customers will not necessarily choose to subscribe to Omniture's services simply because its technology is embedded into Creative Suite.
"It will require some selling, but I think the opportunity is there," he said.
Adobe, whose software competes with products from Microsoft Corp and Apple Inc, agreed to pay $21.50 per share in cash for Omniture, a 24 percent premium over Omniture's closing price on Tuesday.
Omniture shares soared 25 percent to $21.74 in after-hours trading, while Adobe shares slid 4.5 percent to $34.06.
The deal would be Adobe's second-largest acquisition after its $3.4 billion purchase of Macromedia in December 2005.
Omniture would become a unit of Adobe, headed by its current chief executive, Josh James. Adobe said the deal should close in the fourth quarter of fiscal 2009 and would add to Adobe's per-share earnings in fiscal 2010.
Adobe said it would be paid a fee of $64 million by Omniture if the deal is terminated, according to a regulatory filing.
Adobe also reported on Tuesday that fiscal third-quarter earnings, excluding items, fell to 35 cents per share from 50 cents per share a year ago. That beat Wall Street's average forecast by a penny, according to Thomson Reuters I/B/E/S.
Second-quarter sales fell 21 percent to $697.5 million, but beat analysts' average forecast of $686.2 million. For the fiscal fourth quarter, not counting any effect of the Omniture deal, Adobe forecast revenue and earnings, excluding items broadly in line with analysts' estimates.
Agencies
Adobe, which announced the deal on Tuesday as it reported lower quarterly sales and profit, has been struggling over the past year as the recession hurt technology spending and customers declined to upgrade older versions of its programs.
The acquisition would give Adobe a new stream of revenue to offset that decline. Omniture charges customers fees based on monthly website traffic, so sales are less sensitive to economic swings than Adobe.
"There is no way Adobe can grow organically. This is a smart move," said Global Equities Research analyst Trip Chowdhry.
Advertising agencies and companies use Omniture's software to analyze how consumers use websites. It is the biggest provider of such services, competing with Google Inc and other smaller players. The vast majority of all professional websites are built with Adobe's Creative Suite line of design software.
Janney Montgomery Scott analyst Sasa Zorovic said Adobe's customers will not necessarily choose to subscribe to Omniture's services simply because its technology is embedded into Creative Suite.
"It will require some selling, but I think the opportunity is there," he said.
Adobe, whose software competes with products from Microsoft Corp and Apple Inc, agreed to pay $21.50 per share in cash for Omniture, a 24 percent premium over Omniture's closing price on Tuesday.
Omniture shares soared 25 percent to $21.74 in after-hours trading, while Adobe shares slid 4.5 percent to $34.06.
The deal would be Adobe's second-largest acquisition after its $3.4 billion purchase of Macromedia in December 2005.
Omniture would become a unit of Adobe, headed by its current chief executive, Josh James. Adobe said the deal should close in the fourth quarter of fiscal 2009 and would add to Adobe's per-share earnings in fiscal 2010.
Adobe said it would be paid a fee of $64 million by Omniture if the deal is terminated, according to a regulatory filing.
Adobe also reported on Tuesday that fiscal third-quarter earnings, excluding items, fell to 35 cents per share from 50 cents per share a year ago. That beat Wall Street's average forecast by a penny, according to Thomson Reuters I/B/E/S.
Second-quarter sales fell 21 percent to $697.5 million, but beat analysts' average forecast of $686.2 million. For the fiscal fourth quarter, not counting any effect of the Omniture deal, Adobe forecast revenue and earnings, excluding items broadly in line with analysts' estimates.
Agencies
Has Oracle ended its HP computer tie-up?
Oracle Corp has ended a high-profile computer-building partnership with Hewlett-Packard Co as Oracle prepares to acquire Sun Microsystems Inc, a rival of HP.
Sun, the world's No. 4 server maker, and Oracle have jointly developed a second-generation version of a specialized database computer, dubbed Exadata. Oracle and HP launched the first version a year ago.
Oracle Chief Executive Larry Ellison unveiled the new machine on Tuesday, almost a year after he announced his company's entry into the hardware business with help from HP. At the time, he said that HP would be a key ally in that effort.
But the dynamics of that relationship have changed since April, when Oracle agreed to buy Sun for more than $7 billion. Hewlett-Packard and Sun are fierce rivals in the markets for server computers and storage equipment.
The new Exadata computer is the first of what Ellison has said will be many products that wed Sun's hardware with Oracle's software.
An Oracle spokeswoman said Oracle would continue to sell the Exadata computers, built in partnership with HP, until existing inventory is sold out, if customers request that model.
Officials at Hewlett-Packard could not be reached for comment.
When Ellison unveiled the HP partnership a year ago, he told customers that the product could not have been developed without that company's assistance.
On Tuesday he bragged that Sun's technology made the database computer far superior to hardware from rivals including Teradata Corp and Netezza Corp.
"Everything is bigger about Exadata, Version 2. Everything is faster about Exadata, Version 2," he said during a presentation to customers that was broadcast over the Internet.
Oracle does not break out sales of the Exadata machine. But during the company's most recent earnings call, Ellison said that it was one of the most successful products he had launched since he founded the company more than 30 years ago.
Agencies
Sun, the world's No. 4 server maker, and Oracle have jointly developed a second-generation version of a specialized database computer, dubbed Exadata. Oracle and HP launched the first version a year ago.
Oracle Chief Executive Larry Ellison unveiled the new machine on Tuesday, almost a year after he announced his company's entry into the hardware business with help from HP. At the time, he said that HP would be a key ally in that effort.
But the dynamics of that relationship have changed since April, when Oracle agreed to buy Sun for more than $7 billion. Hewlett-Packard and Sun are fierce rivals in the markets for server computers and storage equipment.
The new Exadata computer is the first of what Ellison has said will be many products that wed Sun's hardware with Oracle's software.
An Oracle spokeswoman said Oracle would continue to sell the Exadata computers, built in partnership with HP, until existing inventory is sold out, if customers request that model.
Officials at Hewlett-Packard could not be reached for comment.
When Ellison unveiled the HP partnership a year ago, he told customers that the product could not have been developed without that company's assistance.
On Tuesday he bragged that Sun's technology made the database computer far superior to hardware from rivals including Teradata Corp and Netezza Corp.
"Everything is bigger about Exadata, Version 2. Everything is faster about Exadata, Version 2," he said during a presentation to customers that was broadcast over the Internet.
Oracle does not break out sales of the Exadata machine. But during the company's most recent earnings call, Ellison said that it was one of the most successful products he had launched since he founded the company more than 30 years ago.
Agencies
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