Microsoft Corp will hire at least 400 workers from Yahoo Inc if government regulators approve the companies' proposed Internet search partnership, and Yahoo will receive $150 million to cover any unexpected costs during the switch to new technology.
The details emerged in a regulatory filing that elaborated on an agreement announced last week. Sunnyvale-based Yahoo said then that an unspecified number of its 13,000 employees would be offered jobs at Microsoft after the Redmond, Washington-based software maker assumes control of the search results and search advertising on Yahoo's Web site.
The transition is supposed to begin early next year, assuming the alliance is approved by antitrust regulators in the United States and Europe.
Microsoft will pay $50 million annually during the first three years of the 10-year contract to supplement the revenue that Yahoo will receive from the ads appearing alongside its search results. The $150 million in guaranteed payments weren't mentioned last week.
The filing said Yahoo can use the $150 million to pay for unforeseen transition costs. Yahoo's stock has fallen by about 15 per cent since it unveiled the Microsoft deal, largely because announced terms didn't include a large upfront payment.
The disclosure probably won't ease the disappointment much, given analysts had anticipated Microsoft paying $1 billion to $2 billion for access to Yahoo's search engine.
Most of the revenue from the Microsoft deal will flow from ad commissions. Yahoo will receive 88 percent of the search ad revenue during the first five years of the contract. After that, Yahoo's commission will range from 83 percent to 93 percent, depending on whether it still handles some of the ad sales in the partnership.
The main reason Yahoo decided to turn over its search engine to Microsoft was to save money. If Yahoo wants to save even more on technology, it
has the option of adopting Microsoft's online mapping service replace of its own, according to the filing.
Yahoo Chief Executive Carol Bartz has already made it known she isn't impressed with Yahoo's online maps. As it is, transferring 400 workers to Microsoft would prune Yahoo's current payroll by about 3 per cent.
Yahoo will lay off some workers if the Microsoft deal goes through, Bartz said last week. Tuesday's filing didn't provide any layoff projections. Although it also has been jettisoning workers because of the recession, Microsoft finished its latest fiscal year end in June with 93,000 employees -- an increase of about 2,000 people from the previous year.
Microsoft is counting on the Yahoo partnership to help it reverse years of losses in its online operations and siphon some traffic -- and ad sales -- from Internet search leader Google Inc.
Yahoo's search engine is the second largest, making it the quickest way for Microsoft to gain ground on Google. Even so, Microsoft and Yahoo combined have less than 30 percent of the US search market compared to 65 percent for Google, according to comScore Inc.
To keep Yahoo happy, Microsoft will have to produce ad revenue per search that is within a certain percentage of Google's industry-leading rate. If Microsoft doesn't hit the target, Yahoo can abandon the partnership before the contract expires.
The filing didn't specify how close Microsoft has to come to Google's revenue per search. Microsoft estimates that Google gets 7 cents in ad revenue for every search, while Yahoo gets 4.3 cents and Microsoft gets 3.9 cents, according to a PowerPoint slide Microsoft mistakenly posted online.
Agencies
Thursday, August 6, 2009
Monday, August 3, 2009
Indian teams among finalists of Cisco Developer Contest 2009
Cisco has announced the 10 shortlisted teams from Phase 1 of Cisco’s global Developer Contest - ‘Think Inside the Box’ - which includes two Indian teams. The shortlist of teams for the final phase was from nearly 110 teams and 900 registrants from 75 countries. These ten teams will vie for 3 winning positions at the end of the final phase. This global developer contest gives developers an opportunity to build exciting Linux-based applications on the Cisco Application Extension Platform (AXP), and win a share of the $100,000 prize pool.
Suresh Kumar, Gopinath Bailur and Gokila Sudarshan, members of Team Ideate, and among the 10, have created an Application Suite for IP Telephony (ASIT). This suite is designed to bring savings to organizations by blocking unauthorized voice calls and reducing network operational costs by automating the telephony installation and verification processes.
Rajesh Kotagiri of team Enhancers designed a local Advertising Mesh Networks which is a proposal to create a platform for local advertising management using the Google AdSense network. This platform aims to create a distributed advertisement-serving platform hosted on the AXP, which will help retail stores use their existing infrastructure to display advertisements on LCD screens. The solution also enables a new revenue stream for businesses, as these advertisements would be carried over existing networking infrastructure.
The global contest ‘Think Inside the Box’ began in October 2008, and was an open challenge for engineers to stretch their imagination and create innovative prototypes with the Cisco Integrated Services Router Application Extension Platform, an open network platform. This application developer contest conducted by Cisco promotes the concept of the network as a platform, and aims to recognize outstanding implementation ideas for application development.
A maximum of three members in each team were allowed to participate and the phase 1 closed on February 27, 2009 culminating into the announcement of the 10 finalists. The entries submitted to this contest are judged by a panel of industry experts and academicians for innovation, technical complexity and overall usefulness of the product.
Finalists will develop their proposed applications on the Cisco AXP platform, and will have remote access to a Simulation Lab hosted by Cisco for developing their applications. The finalists will also present their implementations to a panel of experts comprising senior-level Cisco executives along with other industry luminaries. Three winners will be selected based on weighted judging criteria, and they will receive $50,000, $30,000, and $20,000 respectively.
Suresh Kumar, Gopinath Bailur and Gokila Sudarshan, members of Team Ideate, and among the 10, have created an Application Suite for IP Telephony (ASIT). This suite is designed to bring savings to organizations by blocking unauthorized voice calls and reducing network operational costs by automating the telephony installation and verification processes.
Rajesh Kotagiri of team Enhancers designed a local Advertising Mesh Networks which is a proposal to create a platform for local advertising management using the Google AdSense network. This platform aims to create a distributed advertisement-serving platform hosted on the AXP, which will help retail stores use their existing infrastructure to display advertisements on LCD screens. The solution also enables a new revenue stream for businesses, as these advertisements would be carried over existing networking infrastructure.
The global contest ‘Think Inside the Box’ began in October 2008, and was an open challenge for engineers to stretch their imagination and create innovative prototypes with the Cisco Integrated Services Router Application Extension Platform, an open network platform. This application developer contest conducted by Cisco promotes the concept of the network as a platform, and aims to recognize outstanding implementation ideas for application development.
A maximum of three members in each team were allowed to participate and the phase 1 closed on February 27, 2009 culminating into the announcement of the 10 finalists. The entries submitted to this contest are judged by a panel of industry experts and academicians for innovation, technical complexity and overall usefulness of the product.
Finalists will develop their proposed applications on the Cisco AXP platform, and will have remote access to a Simulation Lab hosted by Cisco for developing their applications. The finalists will also present their implementations to a panel of experts comprising senior-level Cisco executives along with other industry luminaries. Three winners will be selected based on weighted judging criteria, and they will receive $50,000, $30,000, and $20,000 respectively.
Sunday, August 2, 2009
Does US lead among spam nations?
The US leads the world in the sending of spam, according to a study.
The study by IT security solutions provider Sophos showed that spam originating in Russia has dropped significantly. It also claimed that some 16.5 per cent of all spam mails sent in the second quarter of this year came from the United States.
Russian spammers - previously a highly active bunch - were only responsible for 3.2 per cent of all spam sent, which puts them in ninth place on the list.
Second place went to Brazil (11.1 per cent), followed by Turkey (5.2) and India (5.0).
Agencies
The study by IT security solutions provider Sophos showed that spam originating in Russia has dropped significantly. It also claimed that some 16.5 per cent of all spam mails sent in the second quarter of this year came from the United States.
Russian spammers - previously a highly active bunch - were only responsible for 3.2 per cent of all spam sent, which puts them in ninth place on the list.
Second place went to Brazil (11.1 per cent), followed by Turkey (5.2) and India (5.0).
Agencies
Friday, July 31, 2009
11.9 m new Indian subscribers added in June
India's telecom industry continued its robust growth story in June by adding 11.91 million new subscribers to take the total subscription base to 464.82 million, said a government statement.
The number of total subscribers in the country as on June 30, 2008 was 325.78 million.
The wireless (GSM and CDMA) segment added 12 million new subscribers, while the wireline segment witnessed a dip of 134,000 connections, the statement said.
The overall tele-density reached 39.86 percent in June 2009 as compared to 28.33 percent in the like period last year.
Broadband connections reached 6.4 million at the end of May and the total number of licences issued for Internet service providers (ISPs) is 375, the statement added.
Under the Bharat Nirman programme, public telephones were provided to 264 villages in May.
Agencies
The number of total subscribers in the country as on June 30, 2008 was 325.78 million.
The wireless (GSM and CDMA) segment added 12 million new subscribers, while the wireline segment witnessed a dip of 134,000 connections, the statement said.
The overall tele-density reached 39.86 percent in June 2009 as compared to 28.33 percent in the like period last year.
Broadband connections reached 6.4 million at the end of May and the total number of licences issued for Internet service providers (ISPs) is 375, the statement added.
Under the Bharat Nirman programme, public telephones were provided to 264 villages in May.
Agencies
Thursday, July 30, 2009
Indian Search Industry to experience stronger competition
Despite the search market in India being very small and amounting to less than $40 million in a year but the market is growing rapidly at about 33% yearly and so the Microsoft-Yahoo! deal is significant to India, Praveen Bhadada, engagement manager, Zinnov Management Consulting.
Speaking on the Microsoft-Yahoo! deal and its impact on India, Bhadada said, “Google is the dominant search engine in India and there are about 15 plus local search engines that have emerged in the last 2 years, for e.g. asklaila.com, justdial, guruji.com, mapmyindia.com, tolmolbol.com etc. covering niche areas. Unlike Baidu (search engine in China), they do not directly compete with the global giants such as Google, Yahoo or Microsoft.”
With presence of more than 35 million SMBs in India, and some of them relying heavily on search engine marketing to push their products across the globe, the
Microsoft-Yahoo partnerships can provide them a better second alternative, he said.
The rapid pace of broadband penetration in India will help both Google and Microsoft-Yahoo in the long run and help them gain larger share in markets such as India and China.
The deal will help both Microsoft and Yahoo! put a strong battle against Google, which currently enjoys more than 65% market share in the $25 billion plus global market for search engine marketing, said Bhadada.
In fact, Yahoo! globally accounts for close to 20% while Microsoft, with its new Bing search platform enjoys about 9% market share.
In the exclusive agreements, Microsoft will acquire a 10 year license to Yahoo’s core search technology and Bing will be the exclusive platform for all Yahoo! sites.
According to the official statement, Microsoft will compensate Yahoo! at an initial rate of 88% of search revenue generated on Yahoo!’s sites during the first 5 years of the agreement.
He said Microsoft will guarantee Yahoo!’s revenue per search in each country for the first 18 months following initial implementation in that country. “Complete integration may take anywhere between 18-24 months.”
The two will continue to compete in other common business areas such as email, web products, messaging etc.
However, dominance of Google may or may not be hampered, he said. Search major Google may be less worried with this agreement with Yahoo and Microsoft Google enjoys a big share in the market and the customer confidence is high on Google as compared to Yahoo and Microsoft. “Unless the actual number of searches increase for the user, this deal may not bring in any fruitful results for the two and the complete integration will only happen by 2011-2012 timeframe,” he said.
But some believe that the Bing platform for advertisers is relatively inferior to that of Yahoo and but alternatively, users will now have a stronger alternative that will provide them scale and if the combined search can provide users a better experience, then they may potentially eat up into Google’s share in the future.
CXOtoday.com
Speaking on the Microsoft-Yahoo! deal and its impact on India, Bhadada said, “Google is the dominant search engine in India and there are about 15 plus local search engines that have emerged in the last 2 years, for e.g. asklaila.com, justdial, guruji.com, mapmyindia.com, tolmolbol.com etc. covering niche areas. Unlike Baidu (search engine in China), they do not directly compete with the global giants such as Google, Yahoo or Microsoft.”
With presence of more than 35 million SMBs in India, and some of them relying heavily on search engine marketing to push their products across the globe, the
Microsoft-Yahoo partnerships can provide them a better second alternative, he said.
The rapid pace of broadband penetration in India will help both Google and Microsoft-Yahoo in the long run and help them gain larger share in markets such as India and China.
The deal will help both Microsoft and Yahoo! put a strong battle against Google, which currently enjoys more than 65% market share in the $25 billion plus global market for search engine marketing, said Bhadada.
In fact, Yahoo! globally accounts for close to 20% while Microsoft, with its new Bing search platform enjoys about 9% market share.
In the exclusive agreements, Microsoft will acquire a 10 year license to Yahoo’s core search technology and Bing will be the exclusive platform for all Yahoo! sites.
According to the official statement, Microsoft will compensate Yahoo! at an initial rate of 88% of search revenue generated on Yahoo!’s sites during the first 5 years of the agreement.
He said Microsoft will guarantee Yahoo!’s revenue per search in each country for the first 18 months following initial implementation in that country. “Complete integration may take anywhere between 18-24 months.”
The two will continue to compete in other common business areas such as email, web products, messaging etc.
However, dominance of Google may or may not be hampered, he said. Search major Google may be less worried with this agreement with Yahoo and Microsoft Google enjoys a big share in the market and the customer confidence is high on Google as compared to Yahoo and Microsoft. “Unless the actual number of searches increase for the user, this deal may not bring in any fruitful results for the two and the complete integration will only happen by 2011-2012 timeframe,” he said.
But some believe that the Bing platform for advertisers is relatively inferior to that of Yahoo and but alternatively, users will now have a stronger alternative that will provide them scale and if the combined search can provide users a better experience, then they may potentially eat up into Google’s share in the future.
CXOtoday.com
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
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