Tuesday, February 2, 2010

IT-industry: through natural selection.

The new conditions, which proved to the entire world IT-industry as a result of the global economic crisis, forcing market participants to operate the most active. And the result is obvious: in addition to the numerous staff reductions and restructuring of the business computer companies increasingly report success in a particular sector.

Semiconductor industry

The largest supplier of microprocessors, Intel is ready to reduce prices on a casual two-and quad-core chips for desktop systems, and custom family of Xeon quad-core chips for servers and workstations. According to Michael McConnell of the company's Pacific Crest, the price of quad-core processors will be reduced by 15-40%. These figures are valid for the user, and for server solutions. Dual-core CPU will drop by 13%. Judge calls this unplanned event, as usual Intel updates price list in the spring (in April) and autumn (October) each year. McConnell said the two causes of the emergency adjustment of prices. The first - oversupplied warehouses due to low demand at the end of last year. The second reason - the success of AMD processors and their relatively low cost. Recently, AMD has reduced the cost of processors Opteron (codenamed Shanghai) at 30%. This is a 4-core processors with the topology of 45 nm for servers. The world's largest manufacturer of computers Hewelett-Packard felt the proposal was more advantageous and reduced orders for the processors, Intel. In addition, AMD has released the second generation of processors Phenom (Dragon), also performed on the basis of a new topological rules, which were highly appraised by experts. Processors AMD Shanghai adopted by leading companies including Hewlett-Packard, Sun, Dell, IBM and Fujitsu. The economic crisis is forcing consumers to cut their spending, which, in turn, affects the income of the corporation. In early January, Intel is already the second time, has warned shareholders that the results of IV quarter of 2008, the second would be worse than expected, taking into account all the amendments. Revenues for the results of the quarter to make $ 8.2 billion - a 23% lower compared to the same quarter of 2007 and 20% lower compared to III quarter of last year. In November, the company waited to $ 9.3 billion revenue. Analysts called this a shocking result, the company's stock fell sharply. Chip market-based GPS and Wi-Fi, will be able to overcome the general decline in the semiconductor industry this year and show relatively good growth, analysts predict. As suggested in the British research company IMS, in 2009, the scope of GPS will increase significantly - in particular, such systems will appear in laptops, cameras and sports equipment. The result, according to analysts the company will increase the annual market for GPS for $ 200 million (25%). In the period from 2008 to 2013, projected to IMS, an average annual growth GPS market will amount to 21,2%. Meanwhile, Wi-Fi Alliance, in turn, evaluates the market growth of wireless communications chips in 2008 at 26%. In 2009, the same year, sales should increase by about the same - despite the crisis, the demand for Wi-Fi is growing steadily. Fastest growing segments of the market Wi-Fi, according to analysts In-Stat, in 2008 became smartphones, netbooks, and media devices. In 2009, this trend should continue, in addition Wi-Fi-equipped adapters will be an increasing number of desktops. Less important is the scope of these chips will be the industry and gaming devices.

Manufacturers of DRAM-memory Kingston Technology Transcend Information, A-Data Technology and Power Quotient International (PQI) raised the prices of DRAM-chips of its own production to $ 1. Recall that in mid-December price of DRAM-chip has fallen to historic lows at $ 0.5, but now came up, having played for a month to 100%. Experts note that in the near future, it could rise even higher, up to $ 1,5. Also added that rising prices of DRAM-module. Thus, the highest price per module 1GB DDR2 recently was $ 10, and the average - $ 8,5. Vice President of MSI Henry Liu believes that in the near future, one of the four leading motherboard manufacturers will have to withdraw from the market. The fact is that not so long ago selling laptops passed important mark, surpassing the sales of desktops. In addition, shipments of motherboards and graphics cards began to fall. This means, says Liu, that the market has nowhere else to expand. Some small companies have already left the market, and this gives the leading producers to exist on the market with a further three years. But then, adds Liu, one of these four companies, which include Asustek Computer, Gigabyte Technology, ECS and MSI, will have to withdraw from the market.


Chinese company Huawei Technologies to account for the year 2008. Sales of this manufacturer of telecommunications equipment rose by 46%, reaching $ 23.3 billion is true that the lion's share of total sales accounted for Huawei contract of sale. Therefore, the actual volume of its sales in 2008 amounted to about $ 17 billion in the crisis management team remains cheerful and optimistic. This year, Huawei plans to contain the increase in global sales to $ 30 billion Regarding net income, then this indicator Huawei managed to enter the five leading telecom companies, rising on a par with Cisco, Ericsson, Alcatel-Lucent and Nokia Siemens Networks.

The largest producer of hard drive company Seagate Technology has announced the resignation of chief executive officer of 56-year-old William Watkins, who held his post since 2004, as well as 52-year-old company president Dave Vikershema. The resignation of top managers is unexpected, and its causes are not reported. It is possible that this is due to the negative financial report for the I quarter of the fiscal year for which Seagate profit fell by 83%. Place Vikershema take 46-year-old Robert Vitmor, who previously held the post of chief technology officer. On replacement Watkins is not reported. Based in California, Seagate, occupying 30% of the world market HDD, also reported that the strategy to reduce costs, plans to reduce its staff in the U.S. by 10%. Works will lose up to 2500 employees. Results in the United States employs 8 thousand employees and a worldwide employs 53 thousand people. It is expected that the results of the current quarter, which ends on 21 January, the company's revenue will be $ 2.3 - $ 2.6 billion - less than expected. According to analysts, the company's revenue will be $ 2.5 billion, and net losses - 2 cents per share.

And on the same topic. Toshiba and Fujitsu are completing negotiations on the unification of units producing hard drives. This step will allow companies to reduce production costs and improve business efficiency. There will be a joint venture, in which the majority of shares will be owned by Toshiba. Previously, Fujitsu had already spoken in favor of combining the production of HDD with someone from outside manufacturers. According to Bloomberg, shares of Fujitsu in this news added to the price of almost 8,6%. Analysts say that if companies could handle all the nuances and agree on a joint venture, the company will become the fourth largest producer of hard drives, bypassing on this indicator, Samsung Electronics. Annual turnover of the new company to be around $ 7.8 billion, experts regard the steps of the two Japanese companies as a positive and confident about the success of the enterprise. According to sources inside the companies, negotiations should be completed by the end of January. In this case, however, the rapid monetary effect of creating joint venture the companies expect to occur. Fujitsu has already announced a reduction in operating profit in the current fiscal year. Operating profit (sales minus administrative costs) Fujitsu will be about $ 893 million, the company previously focused on twice that amount.

Canadian manufacturer of telephone equipment Nortel filed a petition in bankruptcy court. The company went bankrupt because of the difficulty of refinancing due to the credit crunch. Nortel now has assets valued at a billion dollars, while its total liabilities are estimated at $ 12 billion, of which one billion will need to pay in 2011. Difficulties with refinancing at Nortel began in mid-September, when the credit crisis entered an acute phase. The rates of corporate bonds have risen sharply due to lack of funds from banks. Since 2005, when the company was headed by current CEO Mike Zafirovski, Nortel net loss totaled $ 7 billion Zafirovski was trying to rectify the situation staff reduction of 18%, but without tangible results. Key role in the low competitiveness of the company played its technology gap and work on the equipment to an outdated telecommunications system CDMA, while consumers have shifted to more modern standards. Nortel has been founded in 1895, work has begun with the release of equipment for the Montreal brewery. The company provided technical support for transkanadskoy telephone system, created in 1932.

Internet Business

Google has announced that it plans to hire the services of third-party software vendors to sell their web-based application for corporate clients. It is expected that this move will allow Google to increase competition with Microsoft in this market. According to the company, starting with the end of March 2009 the first official mediator will be able to sell, as well as configure and maintain the application package for Google Apps business customers. Previously, Google sold its only applications directly over the Internet.

In April, Apple completely abandon the protection of digital songs sold in online store iTunes. This means that purchased from the iTunes tracks can be listening on any mp3-player and rewrite as many times from one device to another. Currently, eight out of ten million songs already available without DRM. The head of the corporation by Steve Jobs back in 2007, made a statement which said that the system is digital DRM protection has never been an effective tool to combat music piracy and never will. However, music publishers succeeded for a long time to lobby for DRM, in spite of the fact that marketers have long ago discovered the simple truth: the best advertisement for the music - is an opportunity to share it with your friends. Defended his views on DRM, Apple has made concessions to publishers in the other: it will no longer sell all the songs at the same price - 99 cents. This policy of the corporation maintained for six years. Since April, music publishers will be able to choose to which price category include the song: 69, 99 cents, or $ 1.29. According to Apple vice president Phil Schiller, from conversations with copyright holders already know that the tracks for 69 cents will be more than $ 1.29. Throughout its history, iTunes has sold more than 6 billion tracks and today occupies 70% of the digital music market, far ahead of major competitors - Amazon and eMusic.


Main news: Yahoo takes the post of general director of Carol Bartz, Autodesk. At the head of Yahoo Bartz will replace Jerry Yang - the company founder, whose resignation resignation was announced Nov. 18, 2008. 60-year-old Carol Bartz from 1992 to 2006, held in Autodesk offices of president, chairman and CEO. As of January 2009, Bartz is executive director of the company. Prior to joining Autodesk, she worked at Sun Microsystems, Digital Equipment and 3M, and is on the board of Cisco Systems and Intel. Fortune magazine included it in the list of 50 most influential women in business.

Tod Nielsen, who led Borland Software since 2005, will occupy one of the leading positions in the company VMware. His responsibilities in the company will now carry Prusu Eric, a former financial director at Borland Software. Nielsen will also marketing and business development in the subsidiary corporation EMC. Now Borland Software witnessed major structural changes. As part of restructuring planned reduction of 15% of staff (this is 130 people), most of which leave the corporation in April of this year. However, commenting on these changes, Eric Prusu said he did not intend to change the previously selected business strategy of the corporation. According to him, at Borland Software has competitive products, talented employees and an adequate financial reserve to successfully confront the economic crisis.

The largest manufacturer of computer accessories, Logitech has announced a reduction of the workforce by 5%. Approximately 500 people (or 15% of staff) will be dismissed from the departments of sales, marketing, IT and legal offices. Other workers will get a reduction of the manufacturing industry. Logitech Chairman Guerrino De Luca said that Christmas sales were worse than expected. According to De Luca, sales and profit growth rate in the current fiscal year ending March 31, 2010, will be much lower than previous periods.

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