IT-Sector: through natural selection

The new conditions in which the whole world IT-industry as a result of the global economic crisis, forcing market participants to operate the most active. And the result there: along with the numerous cuts in personnel and restructuring of business computer companies are increasingly reporting on progress in a given sector.


Semiconductor industry

The largest supplier of microprocessors Intel Corporation is prepared to side to reduce the prices of two-and Quad chips for desktop systems and custom Quad Xeon chip family for servers and workstations. According to Michael Makkonnela of the company's Pacific Crest, the prices of Quad core would be reduced by 15-40%. These figures are valid for the user, and for server solutions. Dual CPU podesheveyut 13%. Expert calls this non-routine event, as usual Intel updates price list in spring (April) and autumn (October) each year. Makkonnel said the two causes of the emergency adjustment of prices. Home - zatovarennost warehouses due to low demand at the end of last year. The second reason - the success of AMD, and their relatively low cost. Recently, AMD has reduced the cost of processor Opteron (codenamed Shanghai) at 30%. This 4-nuclear processors with the topology of 45 nm for servers. The world's largest manufacturer of computers Hewelett-Packard found the proposal more attractive, and reduced orders for processors corporation 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 appreciated by experts. Processors AMD Shanghai adopted by leading companies including Hewlett-Packard, Sun, Dell, IBM and Fujitsu. Economic crisis forces customers to reduce their costs, which in turn influences the corporate income. In early January, Intel is already the second time, has warned shareholders that the results of IV-th quarter of 2008 will be worse than expected, taking into account all the amendments. Revenues for the quarter results to reach $ 8.2 billion - a 23% lower compared to the same quarter of 2007 and 20% lower as compared to III quarter of last year. In November, the company waited until the $ 9.3 billion revenue. Analysts cited a shocking result, shares fell sharply. Markets chips targeted at the GPS and Wi-Fi, will be able to overcome the general decline in the industry for the production of semiconductors this year and show relatively good growth, analysts predict. As suggested in the British research company IMS, in 2009, the scope of GPS greatly expanded - in particular, such systems will appear in laptops, cameras and sports equipment. The result, according to analysts the company will become an annual increase in market GPS for $ 200 million (25%). In the period from 2008 to 2013 is projected to IMS, an average annual rate of growth GPS market will be 21.2%. Meanwhile, the Wi-Fi Alliance, in turn, evaluates the market growth of wireless communications chips in 2008 at 26%. In the same year, 2009 sales should increase by about the same - despite the crisis, the demand for Wi-Fi is growing steadily. The most rapidly growing segment of the market Wi-Fi, according to the analysts In-Stat, in 2008 were smartphones, netbuki and media devices. In 2009, this trend should continue, in addition to Wi-Fi-adapter will be fitted with an increasing number of desktops. Important field of application of these chips will become and industry of gaming devices.

Manufacturers of DRAM-memory Kingston Technology Transcend Information, A-Data Technology and Power Quotient International (PQI) raised prices for DRAM-chips of its own production to $ 1. I recall that in mid-December, the cost of DRAM-chip fell to a historic minimum of $ 0.5, but now has gone up, having played for a month about 100%. Experts note that in the near future, it could climb even higher, up to $ 1.5. Also added that rising prices and the DRAM-module. Thus, the highest price for the 1GB DDR2 module recently stood at $ 10, and the average - $ 8.5. Vice President of MSI, Henry Liu believes that in the near future, one of the four leading manufacturers of motherboards will have to withdraw from the market. The point is that not so long ago, sales of laptops have moved a significant mark, surpassing the sales of desktops. In addition, shipments of motherboards and graphics cards began to fall. This means, Liu argues that the market is nowhere more to grow. Some smaller companies have already left the market, and it gives you the opportunity to be the leading producers in the market together for another three years. But then, adds Liu, one of these four companies, including Asustek Computer, Gigabyte Technology, ECS and MSI, will have to withdraw from the market.


Manufacturers

Chinese company Huawei Technologies reported for 2008. Sales of this manufacturer of telecommunications equipment increased by 46%, to $ 23.3 billion the truth, the lion's share of total sales accounted for Huawei contract of sale. Therefore, the actual amount of its sales in 2008 amounted to about $ 17 billion in a crisis management company maintains cheerfulness and optimism. This year, Huawei is planning to increase worldwide sales to $ 30 billion With regard to net profit, according to this indicator, Huawei was able to enter the top five leading telecom companies, rose in line with Cisco, Ericsson, Alcatel-Lucent and Nokia Siemens Networks.

The largest hard drive manufacturer Seagate Technology Company announced the resignation of chief executive officer 56-year-old William Votkinsa holding its position since 2004, as well as 52-year-old company president Dave Vikershema. The resignation of top managers off, 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 earnings fell by 83%. Place Vikershema take 46-year-old Robert Vitmor previously served as Senior Technical Director. About Votkinsa replacement has not yet been reported. California-based Seagate, which occupies 30% of the world market HDD, also reported that as part of a strategy to reduce costs, plans to reduce its staff in the United States by 10%. The works will lose up to 2500 employees. A total of 8 States, employing thousands of employees, and has a worldwide staff of 53 thousand people. It was expected that the results of the current quarter, which ends on 21 January, the company earnings of $ 2.3 - $ 2.6 billion - less than expected. According to analysts, the company earnings of $ 2.5 billion, a net loss - 2 cents per share.

And even on the same topic. Toshiba and Fujitsu are finalizing negotiations on the unification of manufacturing hard drives. This step will allow companies to reduce costs in production and increase business efficiency. There will be a joint venture in which the majority of the shares will be owned by Toshiba. Previously, Fujitsu had already spoken in favor of the production of HDD with someone from the party. According to Bloomberg, shares of Fujitsu in this news added to the price of nearly 8.6%. Analysts say that if the companies will be able to resolve all the nuances and to agree on a joint venture, the company will become the fourth largest producer of hard drives, avoiding on the results of the Company Samsung Electronics. The annual turnover of the new venture to be around $ 7.8 billion experts consider the steps the two Japanese companies as a positive and confident about the success of the enterprise. According to sources inside the company, negotiations should be completed by the end of January. However, the rapid monetary effect of the creation of joint venture companies do not have to wait. Fujitsu has already announced the reduction of operating profit in the current fiscal year. Operating profit (sales minus administrative expenses) Fujitsu will be about $ 893 million, the company previously focused on double the amount.

Canadian manufacturer of telephone equipment Nortel filed a court petition in bankruptcy. The company went bankrupt because of the difficulty of refinancing due to the credit crisis. Nortel now has assets amounting to one billion dollars, while its total liabilities are estimated at $ 12 billion billion of them will need to pay in 2011. Difficulties with the refinancing of the Nortel began in mid-September, when the credit crisis entered an acute phase. The rates of corporate bonds rose sharply due to lack of funds from banks. Since 2005, when the company was headed by the current director, Mike Zafirovski, Nortel net loss amounted to $ 7 billion Zafirovski has tried to rectify the situation a reduction of 18%, but this had not yielded tangible results. A key role in the lack of competitiveness of the company has played its technological backwardness, and work on the equipment to an outdated telecommunications system CDMA, while consumers have shifted to more modern standards. Nortel Company was founded in 1895, starting with the release of equipment for the Montreal brewery. The company provides technical support for transkanadskoy telephone system established in 1932.


Internet Business

Google has announced that it plans to use the services of third-party software vendors to sell their web-applications for corporate clients. It was expected that this move will allow Google to enhance competition with Microsoft in this market. According to the company since the end of March 2009 the first formal intermediaries will be able to sell, as well as configure and maintain application package for Google Apps business customers. Previously, Google sold its application only to companies directly via the Internet.

In April, Apple completely abandon the protection of digital songs sold online store iTunes. This means that songs purchased from iTunes can be listen on any mp3-player and rewrite many times as you like from one carrier to another. Currently, eight out of ten of millions of songs already available without DRM. The head of the corporation Dzhobs Steve back in 2007, made a statement which said that the digital DRM protection has never been an effective tool in the fight against music pirates, and it never will be. However, music publishers have been able to lobby for a long time, DRM, despite the fact that marketing has long been discovered a simple truth: the best music, advertising - it is an opportunity to share it with friends. Defend their views on DRM, Apple has made concessions to publishers in the other: it would no longer sell all the songs at the same price - 99 cents. This policy of the corporation maintained for six years. Since April, the music publishers will be able to choose to which prices refer to the song: 69, 99 cents or $ 1.29. According to Apple vice president Phil Schiller, from conversations with the right know that the tracks for 69 cents more than at $ 1.29. Over its history, iTunes sold more than 6 billion tracks and today occupies 70% of the market for digital music, far ahead of the main competitors - Amazon and eMusic.


Personnel Department

Main news: Yahoo takes the post of director of the company's Carol Bartz Autodesk. At the head of Yahoo Bartz will replace Jerry Yang - the founder of the company, the care which the resignation was announced on 18 November 2008. 60-year-old Carol Bartz from 1992 to 2006 served in Autodesk president, chairman of the board of directors and general director. As of January 2009, Bartz is the executive director of the company. Prior to joining Autodesk, she worked at Sun Microsystems, Digital Equipment and 3M, as well as a member of the boards of Cisco Systems and Intel. Fortune magazine has included in its list of 50 most influential women in business.

Tod Nielsen, who led Borland Software beginning in 2005, will occupy one of the senior positions in the company VMware. His responsibilities in the company now will be Eric Prush, previously held the post of financial director at Borland Software. Nielsen also will be marketing and business development in the subsidiary corporation EMC. Now Borland Software is a serious structural change. As part of the restructuring planned reduction of 15% of staff (this is 130 people), most of which leaves the corporation in April of this year. However, commenting on these changes, Eric Prush stated that he does not intend to change the previously selected business strategy for the corporation. According to him, from Borland Software has competitive products, talented employees and an adequate financial reserve to successfully confront the economic crisis.

The largest manufacturer of computer accessory company Logitech announced a workforce reduction of 5%. Approximately 500 people (or 15% of staff) will be discharged from the unit sales, marketing, IT and legal offices. Other workers will fall under the reduction of the production. Logitech Chairman Guerrino De Luca said that Christmas sales were worse than expected. According to De Luca, sales and profit growth rates in the current fiscal year, which ended 31 March 2010, will be much lower than previous periods.

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