From Lenovo Group Ltd. announced that they have reached an agreement with IBM for the sale of their departments for production servers. After they in the 2012 from the same company purchased unsuccessful ThinkPad Department for $1.75 billion, and made him the world's leading manufacturers they have now decided to make a similar move with the server department of IBM.
Calxeda, one of the first companies that introduced ARM chips for servers, is closing its doors and starts the sale of its intellectual property.
HP in the final quarter of this fiscal year achieved revenues of 29.1 billion dollars. This result is a billion dollars better when compared to analysts' expectations.
According to research by the University of Southern California, Google has in the past year has dramatically increased the number of locations around the world from which serves queries to its search engine.
Dell has released a quarterly report that could be the last one published by them as a company listed on the stock exchange. Although revenues in the second quarter of this year were still somewhat higher than expected and amounted to 14.5 billion USD, what is worrying is the decline in earnings by as much as 72%.
Despite there being no clear reason to do so it looks like Microsoft is going to go ahead and push out a smaller version of their Windows 8/RT tablets. The information was leaked accidentally today by Acer Finland. The new product is going to be called the Iconia W3-810. When the rumor about an 8-inch Windows RT device first hit opinions varied as to if this was going help or hurt Microsoft and Windows RT. After a lukewarm launch sales of Windows RT and then Windows 8 devices immediately started to decline. Some blamed the radical redesign of the UI while other felt it was the locked down OS that kept people away. No matter what the cause Window 8 and RT sales were and are continuing to fall which is worrisome for Microsoft.
HP plans to sack even more people than it was previously announced. HP CEO, Meg Whitman has said that they will have to lay off 27,000 people to turn things around in the company, but apparently that was not enough and new numbers are saying that they will cut 2,000 more jobs. No explanations were given for this move, but it is possible that the increasing popularity of the tablet and smartphone market, where HP has nothing to offer, is scaring them. Additionally HP might feel that their personal computers just won’t be enough to compete with the new market. Don’t forget that HP is the largest PC maker in the world.
AMD may have hit something of a snag in their HPC department. It seems that Intel has bought out Cray’s interconnect business. Now if you are wondering how that affects AMD then it might interest you to know that Cray (a maker of super computers) has had a fondness for AMD since the introduction of the Opteron. Now with Intel grabbing up the Interconnect side of the house (and 74 Cray engineers) things could change quickly.
Less than a year ago HP bought Palm for their WebOS and Mobile business. At the time HP made the claim that they were going to move forward with Palm and maintain the mobile side of things. Now they want to shut down the WebOS business and (if the announcement is to be believed) either spin off or close down their PC business. Reading the announcement from HP it sounds like they are cutting some dead weight and cleaning up after some disappointing losses. However, if you dig a little deeper you will find that HP is looking to make a business shift. It is no secret that the consumer market (at least the PC and software market) is something of a loss-leader. This means that you expect to lose a little money on your PC systems while making it back in service, and support costs. The problem is that companies like HP are losing their support money to people like Best Buy, Staples, and others who now have their own service departments that they make money off of.
This leaves companies like HP (who bought up Compaq thinking that would help sales) out of touch and losing more money than they should on their PCs. So what do you do when this happens? Well you take a leaf from IBM’s book. You sell off your PC business and shift back to the Enterprise. Here you can sell a support contract for $3-4,000 per unit (and more in some cases). Corporations that purchase servers and server accessories demand these and pay for them willingly. So HPs announcements today are nothing more than a way of saying to the community at large “Hey, wanna buy our PC and Mobile divisions? We do not want them anymore”. I would not be surprised to hear about offers for both departments soon.
Now the question is; can HP really compete with IBM and Dell? If a recent shift in enterprise purchases is any indication HP is in for a rough year.
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