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Google's Chrome OS: Will you give up desktop apps?
Google revealed a bevy of noteworthy developments for its Chrome OS. However, the success or failure of the Chrome OS will ride on whether users will give up desktop applications.... Continued »
Category: IBM
November 18th, 2009
IBM makes progress toward 'thinking' computing system
IBM said Wednesday that it is making progress toward cooking up a computer system that emulates the human brain and simulates abilities for sensation, perception, interaction and cognition. The end goal: Create a computing system that thinks like the human brain.
In addition, IBM announced that this “large-scale cortical simulation” and the algorithm behind it rivals the brain’s power, energy consumption and size.
A new algorithm, dubbed Blue Matter, was developed with Stanford University and maps and measures all the connections in a brain. Blue Matter rides on IBM’s Blue Gene supercomputing architecture. There’s still some work to do though: IBM’s system thus far can emulate the brain of a cat, but that’s progress over previous efforts.
November 17th, 2009
IBM researchers speed up medical diagnostic testing via chip
IBM researchers have cooked up a quick medical diagnostic testing system based on a silicon chip that can get by on small sample and test for multiple diseases.
The breakthrough to be announced Tuesday means that physicians can test a patient immediately following a heart attack to improve survival rates. The test checks for disease markers, proteins that can be detected in blood using “capillary action force.” In a nutshell, capillary forces refer to the tendency of a liquid to rise in narrow tubes or be drawn into a small opening. The IBM Research-Zurich findings will be detailed in the December issue of the Royal Society of Chemistry (see reprint PDF).
Big Blue’s chip measures 1 x 5 centimeters and contains sets of micrometer wide channels where a test sample would flow for 15 seconds. The filling speed of the fluid being tested can be adjusted if the chip needs extra time to read a disease marker. Here’s how the chip works in stages:
- First, a one microliter sample, 50 times smaller than a tear drop, is pipetted onto the chip, where the capillary forces begin to take effect…
- Then these forces push the sample through an intricate series of mesh structures…
- The sample then passes in a region where microscopically small amounts of the detection antibody have been deposited. These antibodies have a fluorescent tag and are attached within the sample…
- In the reaction chamber, which is about the diameter of a human hair, captures the previously tagged marker. Under a red beam of light, the disease markers can be viewed using a portable sensor device that contains a chip similar to those used by digital cameras. Medical professionals can visually confirm the strength of the disease marker.
The linchpin to this process is the capillary pump, a series of microstructures about 180 micrometers deep. The pump pushes through enough of the sample to create a regular flow rate and make the test accurate.
IBM added that the chip is designed for multiple form factors.
November 16th, 2009
IBM launches private business analytics cloud; Eyes 'easily consumable' BI for the masses
IBM on Monday will unveil Blue Insight, a massive business analytics cloud that will hold more than a petabyte of data. This internal cloud computing environment will be the basis for future external services.
Internally, IBM’s effort is dubbed Blue Insight, a business analytics cloud that will give 200,000 employees access to key corporate data around the world. Blue Insight will suck in data from 100 different data stores and warehouses. The data will then be dished out to salespeople and developers.
According to IBM, Blue Insight is a showcase of the “eat your own dogfood” mantra. The system is built using Cognos, IBM’s business intelligence software, and hardware systems such as System Z, the company’s mainframe (right).
Going forward, IBM said it will add structured and unstructured data to Blue Insight. Some of this data will include revenue forecasts and sales quotas, product breakdowns, queries from real-time data and inventory levels and defects.
Increasingly, companies like IBM and HP are revamping their internal operations and then using those learnings to sell to customers. In IBM’s case, the architecture behind Blue Insight will be used to form the Smart Analytics Cloud for customers.
The Smart Analytics Cloud aims to provide “easily consumable business intelligence services, systems and software.” The bundle will include business intelligence services, Cognos and mainframes.
IBM added that it plans on focusing on the easily consumable part. To make business intelligence easier to digest, IBM said it will use Web 2.0-ish dashboards. In a backgrounder, IBM writes:
A key focus area of the Smart Analytics Cloud is rapid service deployment and end user acceptance. With agile Web 2.0 toolkits, user registration applications are easily created. Corporate processes are automated using IBM freeware and guidance documentation.
Also: IBM launches business analytics services unit; Eyes predictive modeling
November 13th, 2009
Tech M&A accelerates: Will the No. 2 and No. 3 players sell out or compete?
In this installment of The Big Question podcast TechRepublic’s Jason Hiner and I talk about the evolving tech landscape as mergers and acquisitions accelerate. There are plenty M&A possibilities ahead, but tech industry may wind up with giant vendors and startups and little in between.
Meanwhile, a lot of companies will have to make some big decisions. Will IBM get back into networking hardware? What should companies like Juniper and Brocade do? Will there be enough strong No. 2 players to go around?
The Big Question is a joint production from ZDNet and TechRepublic.
You can play this 25-minute episode from the Flash-based player at the top of the page or:
Stories discussed in this episode:
- HP announces $2.7 billion acquisition of 3Com (ZDNet)
- Cisco vs. HP: 3Com acquisition ups the ante (ZDNet)
- Seven tech industry acquisitions we would sanction (TechRepublic)
- Logitech Buys LifeSize. Now what about Polycom? (ZDNet)
- Google spent about $780 million today (ZDNet)
- EU showdown over Oracle-Sun; Objections seem imminent (ZDNet)
November 4th, 2009
New York AG files antitrust charges against Intel; alleges bribery, coercion
The New York Attorney General’s office today accused chip maker Intel of engaging in “a worldwide, systematic campaign of illegal conduct,” including paying kickbacks and threatening computer makers, and filed federal antitrust charges against it. (PDF of Complaint)
In a statement, New York Attorney General Andrew Cuomo said that e-mails revealed that Intel has scored exclusive agreements with computer makers to use its microprocessors by resorting to “rebates” and threats, such as cutting off payments, funding a competitor or ending joint development ventures. In a press release, Cuomo said:
Rather than compete fairly, Intel used bribery and coercion to maintain a stranglehold on the market. Intel’s actions not only unfairly restricted potential competitors, but also hurt average consumers who were robbed of better products and lower prices. These illegal tactics must stop and competition must be restored to this vital marketplace.
Intel spokesman Chuck Mulloy told the Wall Street Journal that the company will defend itself against the charges and that “Neither consumers who have consistently benefited from lower prices and increased innovation, nor Justice, are being served by the decision to file a case now.”
Cuomo’s office said the company also tried to erase traces of its practices by “eliminating crucial but flagrantly objectionable provisions from written agreements or by camouflaging language about illegal guaranteed market shares with terms like ‘volume targets.’ ”
The AG’s office noted specific instances of the illegal practices involving Intel and Dell, HP and IBM. Among the allegations:
- From 2001 to 2006, Intel granted Dell a privileged position vis-à-vis other computer makers in return for Dell’s agreement not to market any products from Advanced Micro Devices, Intel’s major competitor
- Intel threatened HP that it would derail development of a server technology on which HP’s future business depended if HP promoted products from AMD
- Intel paid HP hundreds of millions of dollars in rebates in return for HP’s agreement to cap HP’s sales of AMD-based products at 5% of its business desktop PCs
- Intel paid IBM $130 million not to launch an AMD-based server product
- Intel threatened to pull funding for joint projects that benefited IBM if IBM marketed AMD-based server products
The AG’s office also offered examples of instances where PC makers agreed to go along with Intel’s practices, specifically a 2006 deal between HP and Intel that involved payment of $925 million to HP to increase Intel’s shares of HP’s sales at AMD’s expense and a collaboration between Intel and Dell to market microprocessors and servers at prices below cost to “deprive AMD of strategically important competitive successes.”
However, the AG positions the PC makers as victims here, not collaborators. For example, the AG’s office offers these examples, unveiled as part of its 20-month investigation:
- Internal e-mail from IBM executive in January 2005: “I understand the point about the accounts wanting a full AMD portfolio. The question is, can we afford to accept the wrath of Intel…?”
- Internal e-mail from HP executive in June 2004 after HP defied Intel and launched an AMD product: “Intel has told us that HP’s announcement on Opteron [AMD’s server chip] has cost them several $B [Billions] and they plan to ‘punish’ HP for doing this.”
- Internal Dell e-mail in February 2004 regarding the possibility of Dell ending its exclusive relationship with Intel: “PSO/CRB [Intel CEO Paul Ottelini and Intel Chairman Craig Barrett] are prepared for jihad if Dell joins the AMD exodus.
- Internal e-mail from Intel executive in April 2006: “Let’s talk more on the phone as it’s so difficult for me to write or explain without considering anti-trust issue.”
November 2nd, 2009
Moffat no longer with IBM as fallout from insider trading scandal continues
Robert Moffat, a senior IBM executive who was arrested in an FBI insider trading sting this morning, is no longer employed by the company, a company official has confirmed. 
Moffat, who spent 31 years with the company, was most recently a senior VP responsible for “all IBM hardware offerings as well as the microelectronics division.” In that position, Moffat reported directly to company chairman, president and CEO Sam Palmisano. In a statement, the company said:
Rod Adkins, who was named acting head of IBM’s Systems and Technology Group on October 19, has been appointed senior vice president, STG. Bob Moffat, who had been placed on a leave of absence as a result of a U.S. federal investigation into his personal activities, is no longer an employee of IBM.
The company did not specify whether Moffat resigned or was terminated. It provided no other details, citing a policy of not commenting about personnel issues involving current or former employees.
Adkins, who has been with the company since 1981, has held a variety of product development, business operations and general management positions with the company, including general manager of desktop systems for the old PC division and head of the UNIX business from 1998 to 2001. In 2002, he was on Fortune’s list of the 50 Most Powerful Black Executives in America.
Moffat surrendered to FBI officials as part of the sting on Oct. 16 and was placed on temporary leave of absence days later.
This morning, GlobalFoundries issued a press release announcing that chairman and former AMD CEO Hector Ruiz, who reportedly leaked confidential information about AMD’s reorganization as part of the Galleon Group insider trading operation, will resign his position as chairman of the board, effective Jan. 4. Ruiz is currently on a voluntary leave of absence.
GlobalFoundries did not cite a reason for Ruiz’s resignation.
October 27th, 2009
IBM aims to connect corporate mashups and business intelligence
IBM on Tuesday launched a mashup service for its Cognos 8 business intelligence suite.
The offering, dubbed IBM Cognos 8 Mashup Service, is an application programming interface (API) that can expose content from Cognos 8 as a Web service. That corporate data can then be used in other applications and mashups.
In a nutshell, the business intelligence data can be portable to human resources, procurement and sales management applications. Think exporting a business intelligence or analytics report to a widget.
Meanwhile, IBM has updated its Mashup Center to include the following:
- New data sources via integration points with Microsoft SharePoint, WebSphere MQ and FileNet.
- Better security and governance. IBM said that its Mashup Center can now filter malicious content and unwanted widgets. IBM added that the Mashup Center is compliant with Federal security standards.
- Mashup library tools. The Mashup Center allows businesses to create collections of apps to share.
- Widget tools via a browser-based tool.
October 23rd, 2009
Data center design 101
I don’t have to design data centers, but I do have to play a knowledgeable wonk on the Web from time to time. With that in mind, I attended two data center presentations at the Gartner IT Symposium to see what I could learn.
My knowledge about the data center essentially boils down to one word: Money. Companies are building new data centers to save money on power and better utilize their computing power. Sure, cloud computing is a factor, but a small one for enterprises at this juncture. These people are building data centers in a big way. The other money point: Vendors are killing each other to be the data center king. Cisco takes on HP. IBM is in there. Oracle too (via Sun). And unfortunately for IT buyers each vendor has a different twist on data center architecture.
Simply put, I’m a data center economics major with a minor in things like raised floors, cooling systems, server racks and other items.
Here’s what I learned:
Companies are only building what they need. A weak economy and green IT initiatives mean that techies are increasingly going to be judged by their data center savings, says David Cappuccio, an analyst at Gartner. An efficient data center design can cut the footprint by 60 percent.
Tiers are being mixed and matched with one data center. Data centers have tiers of availability. Tier 1 is 99.6 percent uptime and Tier 4 is 99.995 percent with Tier 2 and Tier 3 in between. To build a Tier 1 10,000 square-foot facility the cost is $9.94 million. Tier 4 will run you $34.5 million, according to Gartner.
One of the more recent trends is to mix and match tiers within one facility. With this approach, you can segment applications based on the importance to the business.
Everyone has a box for mid-sized and large businesses. IBM, Rackable, Sun, Verari Systems and HP all have trailers (right) that can extend data centers and deploy in 12 to 14 weeks. Cappuccio noted that Microsoft has a large 200-and-more-container deployment at its Chicago data center. Microsoft is also experimenting with wind-powered containers. For mid-sized companies these containers could become an alternative to traditional data centers—slap these boxes on a slab and go.
Pod architecture. Cappuccio noted that previous data center design principles went like this: Build a facility for today, estimate what you’ll need in 20 years, and go. Today, it’s all about pods. With this approach you figure out how much space you need, say 15,000 square feet, and then build out for five to seven years. Then you add pods as you grow. Pods also allow for retrofitting so a data center complex can last 40 to 50 years.
Combine pod architectures with density zones. Cappuccio added that data centers should be designed by density zones. High-density applications (200 watts per square foot) represent 10 percent to 15 percent of a total data center usage. Medium-density apps (150 watts per square foot) account for another 20 percent. The rest is low-density (100 watts per square foot). If you mix and match densities you save money on the build-out. The density zone approach is likely to be used in the majority of new or retrofitted data centers by 2013. Double bonus if you take the pod architecture and use density zones.
The money chart:
Raised floors are passe. Anyone who has been in a traditional data center knows that raised floors, anywhere from 12 to 18 inches to 24 to 48 inches, are the norm. If you design a data center properly you can use a concrete slab for the build out. Building on a slab can be $20 per square foot cheaper than a raised floor.
And once you learn the data center principles all you have to do is evaluate all of these vendor data center visions dancing around. The field: Cisco, Oracle, HP, IBM and VMware. You can toss Dell, Microsoft, Amazon and Google into the mix too. The big takeaways from Gartner’s talk on the vendor data center vision are:
- Don’t get locked into anything proprietary;
- The tectonic plates between these vendors are still shifting;
- Don’t let any one vendor creep to the point where it controls your budget. Data centers aren’t meant to be homogeneous.
That final point is very notable. Most data center players have adjacent products and if you’re not careful your entire enterprise could depend on one big name.
October 22nd, 2009
How to know when to send your email to the cloud
Email will ultimately move to the cloud/software as a service model, but the math may not add up for larger companies. How do you know when to make the jump?
Gartner analysts Matthew Cain and James Lundy went through the cloud vs. on-premise email conundrum, but what really made the presentation was a series of charts that serve as decision grids for making a move.
I’ve talked to a bunch of IT executives at the Gartner IT Symposium in Orlando and many of them were at least pondering moving email to the cloud. Gartner reckons that 20 percent of email seats will have a SaaS or cloud model by 2012. In addition, smaller companies will lead the cloud email charge, but large enterprises will tag along. Bottom line: Cloud email costs will be 50 percent less than their on-premise counterparts in 2012.
Here’s the comparison:
Lundy and Cain said that email will move to the cloud for the following reasons:
- Hosted models can deliver significant economies of scale. Most organizations don’t scale past tens of thousands of users, while hosts will ultimately provide services for millions of users.
- Browser-based email will lower costs.
- Storage will be cheaper for cloud email providers.
- And the offline access problem will be solved. Gartner expects hosts like Microsoft and Google to offer offline email access in a browser with a 30-day cache.
Nevertheless, cloud email won’t be for everybody. Enter the second useful chart from Lundy and Cain.
The big takeaway is that you have to consider cloud-based email in long-term planning. The challenge is that there are multiple players. Gartner also expects that Cisco will enter the hosted email game to join Google, Microsoft, IBM and a bevy of others.
October 19th, 2009
IBM's Moffat put on leave after insider trading scandal
IBM has put Bob Moffat, senior vice president of its systems and technology group, on a “temporary leave of absence” following an insider trading sting that named him and other technology executives.
Big Blue told employees that Moffat is no longer serving as an officer of IBM. On Friday, Moffat was named in an insider trading sting that netted Raj Rajaratnam, managing member of Galleon Management, LLC and a portfolio manager for Galleon Technology Offshore, Ltd (see complaint).
Rod Adkins, senior vice president in charge of development and manufacturing, IBM Systems and Technology Group, is now acting head of the unit. Adkins will continue his current role also.
Adkins will report to IBM CEO Sam Palmisano.
October 19th, 2009
Teradata unveils cloud strategy, answer for Oracle's Exadata machine
Data warehousing giant Teradata is outlining its cloud computing strategy including an internal cloud service and a public offering via Amazon Web Services. In addition, Teradata is rolling out an appliance it claims will provide a big performance boost.
The announcements, timed for Teradata’s partner conference in Washington D.C., this week highlight how the stakes are being raised in the data warehousing space. Teradata is battling larger foes like Oracle with its Exadata appliance, HP and smaller players such as Netezza.
Teradata is rolling out a bevy of new initiatives, but the most notable one is its cloud strategy. Teradata has a multi-pronged strategy that includes an internal cloud offering for customers—housed in the vendor’s data center—and a public rollout with Amazon Web Services’ Elastic Compute Cloud (EC2).
Here’s the overview:
October 16th, 2009
Senior IBM exec among those charged in Wall Street insider trading sting
Greed on Wall Street has landed six people - including a long-time, high-level IBM executive - in handcuffs after the FBI charged them with being involved with “the largest hedge fund insider trading case in history.”
In all, the six netted illegal profits of more than $20 million by using insider information about a number of companies, including IBM, AMD, Sun Microsystems, Akamai, Clearwire and Google. The information sharing that led to illegal trading goes back as far as January 2006 and the case itself represents the first time that court-authorized wiretaps have been used to target significant insider trading on Wall Street. Those arrested were:
- Raj Rajaratnam, managing member of Galleon Management, LLC and a portfolio manager for Galleon Technology Offshore, Ltd.
- Danielle Chiesi, an employee of New Castle Funds, LLC and formerly the equity hedge fund group of Bear Stearns Asset Management, Inc.
- Mark Kurland, a top executive at New Castle
- Rajiv Goel, a Director in Strategic Investments at Intel Capital, the investment arm of Intel Corp.
- Anil Kumar, a Director at McKinsey & Company, Inc., a global management consulting firm
- Robert Moffat, Senior Vice President and Group Executive at IBM
Moffat, who surrendered to FBI officials this morning in White Plains, NY, has been with IBM for more than 31 years and has held a number of executive positions.
Moffat, who has been in his most recent position since July 2008, is responsible for “all IBM hardware offerings as well as the microelectronics division,” according to his bio on the company’s Web site. (PDF) The company’s integrated supply chain operations, which include global manufacturing, procurement and customer fulfillment, also report to him. In his position, Moffat reported directly to company chairman, president and CEO Sam Palmisano.
Moffat is also listed as a member of the IBM Performance Team and the IBM Corporate Operations Team, a member of the Board of Trustees for The Manufacturing Institute, an educational and research affiliate of the National Association of Manufacturers, and a non-voting observer on the Board of Directors of Lenovo Group Limited.
The complaints are complex and contain multiple instances of information sharing for the purpose of insider trading. Excerpts of the FBI’s press release, as it relates to Moffat, read:
KURLAND, MOFFAT, and CHIESI engaged in overlapping schemes to commit insider trading. Specifically, CHIESI obtained inside information from MOFFAT, RAJARATNAM, and an executive at Akamai on several publicly traded companies, including IBM, Sun Microsystems, AMD, and Akamai. CHIESI in turn shared that information with KURLAND, and both CHIESI and KURLAND then traded on that information in the accounts of their hedge fund, New Castle…
During other calls intercepted by the FBI, CHIESI obtained non-public information concerning AMD from MOFFAT and RAJARATNAM, and shared that information with KURLAND. For example, in August 2008, CHIESI and MOFFAT were discussing a confidential business transaction that AMD was then negotiating with investors from Abu Dhabi. MOFFAT had access to inside information concerning this deal because as part of the transaction, IBM would be granting a license to an entity to be spun off by AMD. Toward the end of the call, CHIESI asked about the timing of the deal involving AMD, and MOFFAT replied, “six to eight weeks from my meeting.” When asked the chances that the deal would fall through, MOFFAT replied, “Zero…, I see no way that it doesn’t get done.” MOFFAT also said that IBM had “already signed” the agreement.
The FBI and U.S. Attorney’s Office say that the investigation is continuing and issued a warning to those engaging in corrupt and illegal activities on Wall Street. In a statement, Preet Bharara, the United States Attorney for the Southern District of New York, said:
Today, we take decisive action against fraud on Wall Street. This case should be a wake up call for Wall Street. It should be a wake up call for every hedge fund manager and every Wall Street trader and every corporate executive who is even thinking about engaging in insider trading. As the defendants in this case have now learned the hard way, they may have been privy to a lot of confidential corporate information, but there was one secret they did not know: we were listening. Today, tomorrow, next week, the week after, privileged Wall Street insiders who are considering breaking the law will have to ask themselves one important question: Is law enforcement listening?
Moffat, along with several other defendants, were expected to appear in Manhattan Federal Court in New York today. Goel is expected to appear in federal court in San Jose today.
October 15th, 2009
IBM delivers solid quarter, ups 2009 earnings outlook
IBM delivered a solid third quarter that featured better-than-expected profit and revenue growth. The company also upped its earnings targets for 2009.
IBM on Thursday reported third quarter net income of $3.1 billion, or $2.40 a share, on revenue of $23.6 billion, down 7 percent from a year ago. Wall Street was looking for earnings of $2.38 a share on revenue of $23.4 billion.
The outlook was also solid. IBM is expecting 2009 earnings to be about $9.85 a share, up from a previous projection of $9.70 a share. Wall Street had IBM at $9.78 for the year. On a conference call with analysts, IBM CFO Mark Loughridge said the company gained market share in both hardware and software. In software Websphere gained 3 percent market share on Oracle middleware, said Loughridge. On the hardware side, “we’re taking it (share) from both Sun and HP,” he added.
As usual, IBM’s quarterly picture was really about services and software. For the three months ended Sept. 30, IBM’s global technology services unit had revenue of $9.43 billion, down 4.4 percent from $9.86 billion a year ago. Global business services revenue was $4.34 billion, down 11.5 percent from $4.9 billion a year ago. Loughridge was bullish on IBM’s ability to sign deals in the fourth quarter and said “some early signs were encouraging.”
Loughridge added that corporate demand has stabilized going into 2010 with an improving sales pipeline. Loughridge said that’s a substantial improvement and IBM has multiple opportunities ahead. Analysts, however, sounded like they wanted more from IBM’s outlook.
Here’s a look at how IBM’s services unit fared in the quarter (statement, presentation):
October 14th, 2009
Ellison's keynote: Linux, Exadata, the Governator and more
Oracle CEO Larry Ellison took the stage for the final keynote at Oracle OpenWorld 2009 today - an afternoon session that followed lunch and got off to a rough start when Infosys CEO Kris Gopalakrishnan (who was scheduled to speak after Ellison) came on stage first and spent 45 minutes delivering a somewhat dry presentation.
It probably didn’t help that attendees were reminded that there’s a big party tonight. The Who’s Roger Daltrey, who will be performing tonight, made a cameo appearance at the beginning of the session to say he was looking forward to seeing everyone later in the evening.
And so, as the show comes down the home stretch and people are anxious to let their hair down a bit tonight, Ellison walked on to the stage and pretty much got right down to business by announcing that he had four things to talk about: a Linux update, information on Exadata 2, a demo of a product support system and a preview of next generation app called Fusion.
First, Linux. Oracle has been in the Linux business for a while now but Ellison said the company was surprised by the interest in Linux. He noted that the Oracle’s virtual machine will run any OS, such as Windows or Solaris and, of course, Oracle Enterprise Linux. What was surprising, he said, were the results of an HP survey which asked customers running Linux under an Oracle database which Linux they were using. About 65 percent said they were using Oracle Enterprise Linux.
Then, we moved on to Exadata 2, Ellison’s love child that brings together the combination of technology from Oracle and Sun and allows him to take jabs at rival IBM. This is one powerful machine, he notes, that runs 16 times faster than IBM. (Jab No. 1) But wait, he said. IBM has challenged that response, saying that it doesn’t run 16 times faster but only SIX times faster.
Long pause. Cheesy grin from Ellison. Laughter and applause from audience.
“They may be right,” Ellison said with a smirk on his face. Maybe Oracle is only 6 times faster. (Jab No. 2)
October 12th, 2009
Oracle OpenWorld: Getting down to business
At Oracle OpenWorld, company co-presidents Charles Phillips and Safra Catz kicked off the day’s events with a keynote speech that got right down to business about, well, doing business.
In the opening minutes of the keynote, the two took some time to reflect on what the company has been doing in the past year or so, taking time to highlight the advancements in technology that have been rolled-out not only because of the company’s investment in innovation but also because of the company’s investments over the years in companies that have a cutting-edge technology that could enhance Oracle’s offerings.
October 11th, 2009
Ellison rips IBM, shows off Sun-Oracle benchmarks, offers $10M prize
On Sunday night Larry Ellison took the stage at his annual event, Oracle OpenWorld in San Francisco, and came out swinging like a samurai warrior with a newly-sharpened sword. His main target: IBM.
Ellison (right) told a capacity crowd of thousands of IT professionals that IBM has been running a campaign called “Sunset” in which it has been telling Sun customers that Oracle is going to get out of the hardware business and therefore customers should start moving their software over to IBM servers.
Ellison attacked this idea. “We are not selling the hardware business,” he said. “No part of the hardware business are we selling.”
Then he actually displayed some of IBM’s own ads - a bold and highly unconventional move since it gives IBM free attention - before ripping them to shreds. Without going into the gory details, Ellison basically said IBM deploys more servers than necessary, that IBM servers are power hogs (even though IBM talks a big game about being energy-friendly), and that a Sun-Oracle combination runs circles around IBM in performance.
October 8th, 2009
IBM launches 'pureScale': Front runs Oracle's database attack
IBM on Friday will launch a new database technology dubbed pureScale, which is designed to up the ante in transaction processing. The news comes ahead of Oracle’s OpenWorld powwow next week. Oracle CEO Larry Ellison is expected to take a bevy of shots at IBM’s database capability as it touts integrated Exadata hardware-database systems with its to-be-acquired Sun Microsystems.
Given the Oracle barrage that’s on deck, IBM figured it would front run its database rival a bit.
With its DB2 pureScale on IBM Power Systems technology, Big Blue is taking its database architecture used on its mainframes to the IT masses.
PureScale was designed by IBM’s Toronto software lab and its Power Systems lab in Austin. In a statement, IBM says its architecture allows customers to add and remove processing power by adding servers while only paying for the software they need for peak workloads.
In many respects, IBM’s move is an answer to Oracle’s Exadata effort. Increasingly hardware and databases will be bundled together and optimized for peak horsepower. IBM notes that DB2 pureScale improved productivity by more than 80 percent in a test with 100 Power servers. How? DB2 pureScale cuts the communications back and forth within the system to lower computing power.
DB2 pureScale will be available on Power 550 Express and Power 595 systems in December.
Also see: Ellison wants to model new Oracle after T.J. Watson Jr.’s IBM
October 8th, 2009
DOJ probes IBM's mainframe business
The Department of Justice is looking into IBM’s mainframe business for anticompetitive behavior.
According to a bevy of reports, the DOJ is requesting information from IBM’s smaller rivals. The Computer and Communications Industry Association has been stumping for a probe of IBM’s mainframe practices.
The CCIA argues that IBM is really the only player in mainframes. CCIA notes:
Although the mainframe market is not perceptible to the average consumers, these large expensive computer systems power most fortune 500 companies, governments, and financial institutions. IBM plug-compatible mainframe (PCM) computers, which have been in use for over a half a century, are the most popular platform for business computing today. It is estimated that $5 trillion of corporate and government data and applications are stored on mainframes. They serve as the backbone for 70-80% of the world’s computer-based transactions involving ATM sessions, airline bookings, tax filings, health records, and other essential services.
In an AP report, IBM said it will cooperate with the probe.
October 6th, 2009
Can IBM's DNA transistor someday take genetic sequencing mainstream?
IBM Research on Tuesday unveiled plans to create a “DNA transistor” that would result in personalized genetic testing for about $100 to $1,000. If successful, IBM could take genetic testing mainstream.
In other words, your future Best Buy shopping list may look like this: PC, digital camera, video game and DNA testing machine.
For now, IBM is drilling nano-sized holes in computer-like chips and slurping DNA strands through them to read the genetic code. This DNA transistor would slow the DNA long enough to decode it. The main objective: Create personalized genome analysis to better diagnose and treat health ailments.
Read the rest of this entry »
October 2nd, 2009
IBM targets Google Apps for business, undercuts pricing and touts reliability
IBM is going after Google Apps Premier hard and has the pricing to show it’s serious. Big Blue is announcing the general availability of LotusLive iNotes, a cloud email, calendar and contact management service, for $36 a year per user. Google Apps Premier runs $50 per user a year.
The LotusLive iNotes launch, set to be announced on Monday, pushes reliability in a big way. Taking a jab at Google’s outages, IBM said it’s imperative that cloud computing “is ready for the enterprise when it’s designed for the enterprise, by the enterprise, and of the enterprise.” Word of IBM’s iNotes move began to surface late Thursday and Big Blue has had a LotusLive iNotes site live for days.
Sean Poulley, vice president of IBM’s online collaboration and cloud services, says the idea behind LotusLive iNotes is to bring more security, reliability and privacy to enterprises that want Webmail. “These things matter a lot to the customer,” says Poulley, who described Google’s Gmail as a “consumer grade service.” “We’re bringing business class services and support with mission critical reliability at a price lower than the competition.”
A few key points on LotusLive iNotes:
- IBM is acknowledging companies want hybrid cloud systems and it isn’t going to cede the online portion of the equation to Google. IBM said that LotusLive iNotes is interoperable with Lotus Notes and Microsoft Exchange.
- The company is pushing security and reliability as its big pitch, banking on IBM’s reputation as an enterprise service provider. LotusLive iNotes features touted by IBM include secure email via any Web browser, offline capability, mobile mail and cloud centralized calendar and contracts.
- IBM is aiming to get its foot in the door at companies that are looking for “gradual or dramatic migrations to the cloud” while supporting on-premise software. Poulley says that IBM isn’t pushing the market in any one direction. He acknowledged there will be some companies that want all on-premise software and others that want everything in the cloud. The big middle tier will be hybrid.
- The company appears to be setting up Lotus as a cloud brand. When asked whether Lotus could become synonymous with enterprise 2.0, Poulley pointed out Lotus Connections and other Web 2.0 features IBM is embracing. “In the last three years most of the Lotus portfolio has been adapted to be Web 2.0 centric,” says Poulley, who added Connections is the fastest growing Lotus brand IBM has ever had.
- Big Blue sees the Google threat as so serious it’s willing to blow up pricing for share. There are a few notable Google jabs including:
LotusLive iNotes was built for business use. Unlike other Web mail services, LotusLive iNotes accounts are not co-mingled with free, consumer accounts nor are they targeted for advertising spam.
- There are some fine print items to consider. For instance, LotusLive iNotes comes with 1GB of storage per user. Google provides 25GB. Poulley said that IBM focused on the features that businesses really want. “Some enterprise customers don’t want to keep 25 GB online because it’s a compliance and audit issue,” says Poulley.
The big question: Will IBM’s move work? There’s no question that Google may be vulnerable following well-publicized Gmail outages. And large enterprises may think twice about Google. IBM says “there is zero tolerance in the big leagues for frequent outages or doubt about the sanctity of business data.”
What’s also notable here is that IBM may be using the cloud Lotus version to preserve its on-premise business. It’s also interesting that IBM is targeting Google, but doesn’t mention Microsoft, which also plans a cloud version of Office. IBM may be subtly jabbing at Microsoft when it says LotusLive iNotes gives users on-premise functionality “without adding on extra features they do not require.”
Larry Dignan is Editor in Chief of ZDNet and Editorial Director of ZDNet sister site TechRepublic. See his full profile and disclosure of his industry affiliations.
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