Online services have been a financial drain for Microsoft, and the company said it has moved financial reporting for Windows Live from the Online Services Business to the Client division.
In a conference call with Wall Street analysts, Microsoft executives said Windows Live pulled in $520 million in revenue in fiscal year 2009, but posted a loss of $560 million. This is by no means a recent trend. Overall, the Online Service Business posted an operating loss of $2.2 billion during fiscal 2009, after racking up a $1.2 billion loss in fiscal 2008.
Tami Reller, Chief Financial Officer and Corporate Vice President, Windows Business Group, said Windows Live operates at a loss primarily due to data center construction costs, research and development, and sales and distribution costs.
"The investments in the data centers is one of the most significant investments in the Windows Live business, and really is a result of the large customer base and the strong competitive position that we have today across these services," said Reller.
Windows Live, which includes Hotmail, Live Messenger, and Skydrive, has more than 500 million users, and makes the bulk of its money through online advertising, according to Microsoft. As the user base grows, Microsoft will continue to invest in building out the data center infrastructure to support them, while also maintaining its investment in R&D, sales, and distribution, according to Reller.
"It is an organizational move, not new or changed investment," said Reller.
Microsoft will report its fiscal 2010 first quarter results on October 22, and Wall Street will be looking for some signs of improvement from several consecutive dismal quarters. Slowing PC and server sales have decimated Microsoft's business, and company officials have called the situation the most difficult economic environment the company has faced in its history.
Agencies
Sunday, September 27, 2009
Motorola's Android system banks on Google's Web power
Struggling phone maker Motorola unveiled its first device using Google's Android system Thursday, expecting it will power features that promise easier access to hot Internet sites like Facebook and Twitter.
The phone, called Cliq, will go on sale at T-Mobile before the end of the year. Pricing info has not yet been released.
Motorola has reorganized its handset biz around Google's Android system, hoping the partnership with the Web search leader can help it win back customers.
The centerpiece of Motorola's Android development is its MOTOBLUR software, which integrates contacts, e-mails and text messages along with postings and photos from social networks by feeding content from these sources into "easy-to-manage streams."
For example, Motorola's live "Happenings" application delivers updates posted by friends automatically on multiple social sites to one place, and gives the user a choice of ways to reply to those updates instantly.
Agencies
The phone, called Cliq, will go on sale at T-Mobile before the end of the year. Pricing info has not yet been released.
Motorola has reorganized its handset biz around Google's Android system, hoping the partnership with the Web search leader can help it win back customers.
The centerpiece of Motorola's Android development is its MOTOBLUR software, which integrates contacts, e-mails and text messages along with postings and photos from social networks by feeding content from these sources into "easy-to-manage streams."
For example, Motorola's live "Happenings" application delivers updates posted by friends automatically on multiple social sites to one place, and gives the user a choice of ways to reply to those updates instantly.
Agencies
New smart card technology by 2014, says MTA
Bus and subway riders will be able to abandon the MetroCard and use debit or credit cards to ride anywhere in the city by 2014, according to the MTA.
The Metropolitan Transportation Authority for the first time set a target date for a no-swipe smart-card system to be in full use after years of studies and pilot programs.
With smart-card technology, riders simply waive or tap their credit or debit cards on readers when entering a subway station or bus.
Not having to swipe at turnstiles or dip a MetroCard into a fare box reader should speed travel and reduce MTA expenses, experts have said.
"I think it's great," Bill Henderson, executive director of the MTA's Permanent Citizens Advisory Council. "The technology is going help out the riders and the system."
The 2014 date is included in an MTA document detailing some of the major initiatives in the five-year capital plan recently approved by the authority's governing board.
If fully funded, the capital plan will allocate $220 million for a smart-card system, which also would include prepaid cards not linked to bank or credit accounts.
Agencies
The Metropolitan Transportation Authority for the first time set a target date for a no-swipe smart-card system to be in full use after years of studies and pilot programs.
With smart-card technology, riders simply waive or tap their credit or debit cards on readers when entering a subway station or bus.
Not having to swipe at turnstiles or dip a MetroCard into a fare box reader should speed travel and reduce MTA expenses, experts have said.
"I think it's great," Bill Henderson, executive director of the MTA's Permanent Citizens Advisory Council. "The technology is going help out the riders and the system."
The 2014 date is included in an MTA document detailing some of the major initiatives in the five-year capital plan recently approved by the authority's governing board.
If fully funded, the capital plan will allocate $220 million for a smart-card system, which also would include prepaid cards not linked to bank or credit accounts.
Agencies
Saturday, September 26, 2009
Acquisitions are 'back on' says Google CEO
Google, facing slowing growth amid a slump in advertising spending, is again considering acquisitions, CEO Eric Schmidt said.
"Acquisitions are back on," Schmidt, 54, said in an interview at an event in Pittsburgh this week. His company had more than $19 billion in cash and short-term investments at the end of its most recent quarter.
Schmidt's comments suggest Google's business is improving, giving the company confidence to spend on purchases, said Jeff Lindsay, an analyst at Sanford C. Bernstein in New York.
Google, the world's most popular Internet search engine, has relied on smaller acquisitions since buying DoubleClick for $3.2 billion in 2008 and YouTube for $1.65 billion in 2006.
"It's definitely a sign that Google is seeing stronger cash flow," said Lindsay, who recommends buying the stock and doesn't own it. "In the down economy all of the Internet players, including Google, cut back on capital expenditures to preserve cash flow."
Google typically buys 10 to 12 companies a year, Lindsay said. The company acquires smaller rivals, including startups, to boost its technology development, he said.
This month, Google bought ReCaptcha, a company that helps prevent fraud and spam at Web sites such as Ticketmaster.com, for an undisclosed sum. In August, it agreed to buy video-technology company On2 Technologies for $106.5 million.
Google reported a sales gain of 2.9 percent last quarter — down from 39 percent a year earlier — as ads fetched lower prices and the recession crimped marketing budgets.
The company is also facing increasing competition from main rivals Yahoo and Microsoft, which agreed to combine their search businesses in July.
Google may buy wireless-technology providers and so-called cloud-computing companies to supplement its product lines, said Jim Friedland, an analyst at Cowen in New York.
The purchases might range from $10 million to $75 million, said Friedland, who rates the stock "buy" and doesn't own it.
Cloud-computing services let customers store and access data over the Internet.
Agencies
"Acquisitions are back on," Schmidt, 54, said in an interview at an event in Pittsburgh this week. His company had more than $19 billion in cash and short-term investments at the end of its most recent quarter.
Schmidt's comments suggest Google's business is improving, giving the company confidence to spend on purchases, said Jeff Lindsay, an analyst at Sanford C. Bernstein in New York.
Google, the world's most popular Internet search engine, has relied on smaller acquisitions since buying DoubleClick for $3.2 billion in 2008 and YouTube for $1.65 billion in 2006.
"It's definitely a sign that Google is seeing stronger cash flow," said Lindsay, who recommends buying the stock and doesn't own it. "In the down economy all of the Internet players, including Google, cut back on capital expenditures to preserve cash flow."
Google typically buys 10 to 12 companies a year, Lindsay said. The company acquires smaller rivals, including startups, to boost its technology development, he said.
This month, Google bought ReCaptcha, a company that helps prevent fraud and spam at Web sites such as Ticketmaster.com, for an undisclosed sum. In August, it agreed to buy video-technology company On2 Technologies for $106.5 million.
Google reported a sales gain of 2.9 percent last quarter — down from 39 percent a year earlier — as ads fetched lower prices and the recession crimped marketing budgets.
The company is also facing increasing competition from main rivals Yahoo and Microsoft, which agreed to combine their search businesses in July.
Google may buy wireless-technology providers and so-called cloud-computing companies to supplement its product lines, said Jim Friedland, an analyst at Cowen in New York.
The purchases might range from $10 million to $75 million, said Friedland, who rates the stock "buy" and doesn't own it.
Cloud-computing services let customers store and access data over the Internet.
Agencies
TV blogging application from Den Networks
NDS, which provides technology solutions for digital pay-TV, has announced that digital cable TV operator Den, has launched two services on the NDS MediaHighway platform.
Den recently launched an interactive TV micro blogging application Blog.telly, after the launch of its 24-hour music service in January this year.
Den CEO Anuj Gandhi says, "The launch of these additional services further improves the entertainment experience for our digital cable viewers in India."
NDS senior VP, GM Asia Pacific Sue Taylor adds, “We will continue to work with Den to provide solutions and localised support in India, enabling them to deliver interactive entertainment services to their subscribers."
Agencies
Den recently launched an interactive TV micro blogging application Blog.telly, after the launch of its 24-hour music service in January this year.
Den CEO Anuj Gandhi says, "The launch of these additional services further improves the entertainment experience for our digital cable viewers in India."
NDS senior VP, GM Asia Pacific Sue Taylor adds, “We will continue to work with Den to provide solutions and localised support in India, enabling them to deliver interactive entertainment services to their subscribers."
Agencies
IT services deal signed between GE, Mahindra Satyam
Mahindra Satyam today said it has received an extension of its multi-million dollar contract with GE for next three years January 1, 2010.
GE, which is among the top five customers of Mahindra Satyam for over a decade now, gets support in the specialised areas of Application Development Maintenance, Business Intelligence and engineering services, Satyam Mahindra said in a statement.
"We thank the leadership at GE, for having reposed their confidence in us, and reinforce our resolve to excel in our deliverables to our esteemed partner, for years to come," Mahindra Satyam Global Account Executive Arvind Malhotra said.
GE has signed a similar contract with 11 other vendors. "GE recognizes the support extended over the years by Mahindra Satyam, and their commitment to delivery excellence, even during trying times," GE GDC Leader Steve Morrison said.
Satyam management had been in constant dialogue with its major clients, including GE and others to continue working with it.
"Mahindra Satyam has gained 32 new customers in the last four months," a top official had said earlier.
"Some of the large clients we had lost earlier are coming back and are reassigning new business," Atul Kunwar, the company's president of the Middle East, Europe, India and Asia Pacific regions, said on the sidelines of an industry conference.
The company, currently has about 420 clients, he said, compared with 480 in January before it was left battling for survival after Satyam's founder revealed India's biggest corporate fraud.
Satyam was acquired by Tech Mahindra in an auction in April and subsequently renamed. The number of employees the company has on reserve has come down to 7,000 from 8,500 in July, Kunwar said.
"With the business improving and new deals coming in, we have slowly started taking in employees from the virtual pool."
Agencies
GE, which is among the top five customers of Mahindra Satyam for over a decade now, gets support in the specialised areas of Application Development Maintenance, Business Intelligence and engineering services, Satyam Mahindra said in a statement.
"We thank the leadership at GE, for having reposed their confidence in us, and reinforce our resolve to excel in our deliverables to our esteemed partner, for years to come," Mahindra Satyam Global Account Executive Arvind Malhotra said.
GE has signed a similar contract with 11 other vendors. "GE recognizes the support extended over the years by Mahindra Satyam, and their commitment to delivery excellence, even during trying times," GE GDC Leader Steve Morrison said.
Satyam management had been in constant dialogue with its major clients, including GE and others to continue working with it.
"Mahindra Satyam has gained 32 new customers in the last four months," a top official had said earlier.
"Some of the large clients we had lost earlier are coming back and are reassigning new business," Atul Kunwar, the company's president of the Middle East, Europe, India and Asia Pacific regions, said on the sidelines of an industry conference.
The company, currently has about 420 clients, he said, compared with 480 in January before it was left battling for survival after Satyam's founder revealed India's biggest corporate fraud.
Satyam was acquired by Tech Mahindra in an auction in April and subsequently renamed. The number of employees the company has on reserve has come down to 7,000 from 8,500 in July, Kunwar said.
"With the business improving and new deals coming in, we have slowly started taking in employees from the virtual pool."
Agencies
Win $10 million prize for building a best power saving bulb
The US Energy Department has declared a contest in which the company that makes the best power saving bulb will get a prize of $10 million. The contest winner will also receive consideration for federal purchasing agreements and will have a head start at cracking a vast consumer marketplace. The Energy Department will also award $5 million to the creator of an LED reflector lamp.
The L Prize has attracted significant attention in the lighting industry. Currently, 60 watt incandescent lamps represent 50 percent of all the lighting in the United States, with 425 million sold each year. The Energy Department says that if all those lamps were LED equivalents, enough power would be saved to light 17.4 million American households and cut carbon emissions by 5.6 million metric tons annually.
So far, Philips is the only company which has submitted its entry. The company has developed a led based bulb which uses one-sixth energy of a 60 watt incandescent bulb. "Philips is confident that the product submitted meets or exceeds all of the criteria for the L Prize," Rudy Provoost, Chief of Philips Lighting, said in a statement to New York Times. Philips has delivered 2,000 prototypes of its bulb to the Energy Department for testing.
Apart from few changes, the incandescent bulb continues to be similar to the Thomas Edison creation. But now the incandescent bulbs will be outlawed by new energy standards that go into effect in 2012. LED bulbs are now available but they have limited output and high prices.
The energy department has made certain criteria for the competition. All bulbs must be able to provide as much light as 60 watt incandescent bulb in 10 watt. The bulb must also last for more than 25,000 hours - about 25 times longer than a standard light bulb. Also, at least 75 percent of the bulb must be made or assembled in the United States. Philip's prototypes currently meet up in all criteria.
Speaking about the contest, James R. Brodrick, Manager of the Solid State Lighting Program of the Energy Department says that these will be the most publicly tested bulb ever. "We've probably eliminated almost 25 products that were horrible," said James R. Brodrick, manager of the Solid State Lighting Program of the Energy Department. "We test LED bulbs today that claim on the package that they're equivalent to 40 watts, but are really like 20-watt bulbs."
Kevin Dowling, Vice President for innovation at Philips Solid State Lighting Solutions, is confident that the LED light bulb can become an affordable option. "Over the long term, we can absolutely get the cost down to the $20 to $25 range," he said.
Agencies
The L Prize has attracted significant attention in the lighting industry. Currently, 60 watt incandescent lamps represent 50 percent of all the lighting in the United States, with 425 million sold each year. The Energy Department says that if all those lamps were LED equivalents, enough power would be saved to light 17.4 million American households and cut carbon emissions by 5.6 million metric tons annually.
So far, Philips is the only company which has submitted its entry. The company has developed a led based bulb which uses one-sixth energy of a 60 watt incandescent bulb. "Philips is confident that the product submitted meets or exceeds all of the criteria for the L Prize," Rudy Provoost, Chief of Philips Lighting, said in a statement to New York Times. Philips has delivered 2,000 prototypes of its bulb to the Energy Department for testing.
Apart from few changes, the incandescent bulb continues to be similar to the Thomas Edison creation. But now the incandescent bulbs will be outlawed by new energy standards that go into effect in 2012. LED bulbs are now available but they have limited output and high prices.
The energy department has made certain criteria for the competition. All bulbs must be able to provide as much light as 60 watt incandescent bulb in 10 watt. The bulb must also last for more than 25,000 hours - about 25 times longer than a standard light bulb. Also, at least 75 percent of the bulb must be made or assembled in the United States. Philip's prototypes currently meet up in all criteria.
Speaking about the contest, James R. Brodrick, Manager of the Solid State Lighting Program of the Energy Department says that these will be the most publicly tested bulb ever. "We've probably eliminated almost 25 products that were horrible," said James R. Brodrick, manager of the Solid State Lighting Program of the Energy Department. "We test LED bulbs today that claim on the package that they're equivalent to 40 watts, but are really like 20-watt bulbs."
Kevin Dowling, Vice President for innovation at Philips Solid State Lighting Solutions, is confident that the LED light bulb can become an affordable option. "Over the long term, we can absolutely get the cost down to the $20 to $25 range," he said.
Agencies
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