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Dell Stock Buyback Struggles As PC Business Goes Into Free Fall

Dell Stock Buyback Struggles As PC Business Goes Into Free Fall

Michael Dell's quest to buyback his company continues with recent developments regarding private equity firms and their unwillingness to participate in a process called "go-shopping." Go-shopping is a period after a deal is announced in which the target company, in this case Dell, shops around to see if there are any other bidders. Go-shops were first used in private equity buyouts that demanded exclusive negotiations. The board agrees to the exclusivity, but with the caveat that it gets a period of time when alternative bids can be solicited.  This step assures the board that the company will be sold to the... more »
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CIOs Should Embrace the Cloud but Apply Strong Management Techniques

As the initial CIO skepticism about cloud services fades and ITOs start looking for the advantages of cloud, writes Scott Lowe in his latest Wikibon Alert, “The CIO and the Cloud: Embrace, Extend, Innovate”, they should consider Big Data Analytics as an early use case. However, they should be careful about “platform sprawl”, the 21st century equivalent of “server sprawl”, and apply strong governance practices from the start. In an Alert inspired by the April 23 Peer Incite discussion on the impact of cloud services in general and Amazon specifically on the IT organization, Lowe writes that CIOs have no lack... more »
VMware Losing Momentum? Wall Street Overreacts to Poor Q2

VMware Losing Momentum? Wall Street Overreacts to Poor Q2

VMware posted its first-quarter earnings, which showed a 9.3 percent decline despite realignment charges.  Though its services revenue and core earnings improved, shares fell 6.8 percent to $70.80 after hours, as the company lowered its full-year revenue guidance and offered weak estimates for the second quarter. Joining Kristin Feledy to provide his Breaking Analysis in this morning’s NewsDesk is Wikibon Senior Analyst Stu Miniman. Miniman explains that though VMware is still profitable, because it is restructuring, it lowered future estimates, which is never perceived well by investors.  But it should be noted that cutting down estimates was due to the fact that... more »
REVIEW : Galaxy S4 Not the Game-Changer We Expected

REVIEW : Galaxy S4 Not the Game-Changer We Expected

The Samsung Galaxy S4 received so much attention when it was unveiled mostly because of its Jedi-like gesture-control features.  The question now is, is the device living up to the hype? It's all an illusion . First off, Samsung dropped the use of Roman numerals, so instead of finding ‘SIV’ at the back, there’s an ‘S4’ printed on the back cover. The S4 looks a lot like the SIII.  Some say it’s a bad thing, but others see this as another opportunity for Samsung to capitalize on the success of the SIII. “At first the "inspired by nature" motif made sense with the rounded appearance... more »
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Data Scientists -- Weight Cost/Benefits of Cloud for Production Big Data Systems

Enterprise developers and data scientists often build small proofs-of-concept for Big Data analysis projects, involving relatively small subsets of enterprise data, on public cloud platforms. But when those pan out, the development team builds the production-level system in-house. That makes sense when most or all of the data is generated in-house, but it may be adding unnecessary cost when large amounts of third-party data that originates in the Cloud is merged with corporate data, writes Jeff Kelly in his latest Wikibon Peer Incite. In an analysis that comes out of the April 23 Peer Incite Meeting on the impact of cloud... more »
PayPal President Makes Surprise Commentary About Bitcoin: "We're kinda thinking about it"

PayPal President Makes Surprise Commentary About Bitcoin: "We're kinda thinking about it"

Wednesday, David Marcus, president of EBay Inc.'s PayPal unit, spoke to a Bloomberg interviewer on camera about mobile payment security and during the discussion commented—albeit briefly—on the position of the virtual currency Bitcoin. In the discussion, he mentioned his own fascination with the currency and that his company is “thinking about it” when it comes to including the currency on their rolls. You can watch the video over at Bloomberg, but here’s the salient section (from about 2:55): So I’ve been spending a lot of time looking at it, and it’s truly fascinating actually: the way that the currency’s been designed, and... more »
$45 BeagleBone Black to Compete With Raspberry Pi

$45 BeagleBone Black to Compete With Raspberry Pi

In the wake of the popularity of Raspberry Pi, here comes the yet-another-incarnation of the cheap single-board machine. The BeagleBone Black. Priced at $45, the BeagleBone Black competes directly with the Raspberry Pi. Though several new features and enhancements have been introduced in the new BeagleBone Black, the favorable element remains its price. The company has reduced the price to almost half as compared to previously $89 single board computer (SBC) makes the BeagleBone cheaper than most Arduino boards and marginally above the $25-$35 Raspberry Pi. Coming on the technical specifications, The BeagleBone Black's single-core processor grows up from the predecessor’s 720MHz... more »
How Big Data Trumps The New Terrorist Model

How Big Data Trumps The New Terrorist Model

The Cold War was all about an arms race that saw the world's two biggest superpowers, the USA and the Soviet Union, amass thousands of nuclear weapons. These days, conflicts are vastly different. Instead of an arms race, what we're now seeing is an “organizational race”, in which terrorist groups, insurgents, police forces and intelligence operatives alike all strive to create networks. For the bad guys, the aim is to build up dozens of small cells comprised of no more than three or four operatives, each with the same agenda but only loosely affiliated with other groups. Meanwhile, for intelligence... more »
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The GE Pivotal Announcement: Rewriting the Rules of Big Data and Internet of Things

GE, the world's leader in industrial technology and solutions, today plowed $105M into Pivotal, the EMC/VMware spinout. You can read John Furrier's post for the details of the deal but this in my view represents the next wave in Big Data applications and a huge boon (and possible disruption) to Big Data valuations. This deal has the Tucci, Maritz, Gelsinger, Goulden playbook all over it and is one of the reasons I love EMC - they make big, bold moves and tend to execute on them, creating massive shareholder value in the process. Last month I attended the EMC/VMware financial analysts... more »
ServicesAngle News Briefs for April 24, 2013

ServicesAngle News Briefs for April 24, 2013

EMC Reports Record 1Q Revenues, Reaffirms 2013 Business Outlook EMC has reported 1Q13 revenue of $5.39 billion, a 6% increased year-to-year and a record for the company. GAAP net revenues attributable to EMC were $580 million, and earnings per diluted share were $0.26. Non-GAAP net income attributable to EMC was %850 million, a 4% year-to-year increase, and non-GAAP diluted share earnings were $0.39, a 5% year-to-year increase. More HP WebInspect 10.0 Helps Clients Identify Vulnerabilities in Web Apps HP has announced WebInspect 10.0, an application-security system that replicates real-world attacks through a guided testing process, enabling organizations to develop and deliver secure Web... more »

Premium Research

- David Floyer

Cataloging and automated policy management are the key enablers of a virtual flash world, where storage snapshots are both King and Knave. Combining cataloging and automated policy management is the only solution to enabling storage copy reduction in harmony is risk management and compliance. This enables and justifies an all-flash data center, enables data to be available quicker to the business and other IT functions, and drives greater business and IT productivity and responsiveness. CIOs and senior management should create a small team of the best and brightest, create an optimized all-flash virtual environment with a programmatically integrated catalog in a subset of the datacenter, and demonstrate the practicality and benefits of this environment to the business and IT.

- Stuart Miniman

VMworld has grown to be one of the largest and most important technology industry events. Wikibon has attended this event for many years and will have its largest presence this year as part of a double-set of theCUBE. Coverage will examine the broad and diverse ecosystem including storage, cloud, networking and much more.

- David Floyer

Wikibon believes latency storage vs. capacity storage is a key storage dimension, with different functional requirements and different cost profiles. Latency storage is found within the datacenter supporting more active applications, and in general has a high read bias. Latencies can vary from 1 millisecond down to a few microseconds; the lower (better) the latency the closer to the processor resources it is likely to be. It is also found for the metadata layer for capacity data. The boundary for latency storage will reduce down to 500 microseconds over the next three years. Capacity storage is found in archive, log, time-series databases for the Internet of things and many other similar applications. In general it is write-heavy. Latencies are generally above 1 millisecond, do not have to so close to the processor, and are suitable for remote private, public and hybrid cloud storage. Some parts of the capacity market place will have latencies as low as 500 microseconds over the next three years. Wikibon has added this dimension to the other storage dimensions projected, which include HDD vs. Flash, Hyperscale Server SAN vs. Enterprise Server SAN vs. Traditional SAN/NAS storage, Physical Capacity vs. Logical Capacity and SaaS Cloud vs. IaaS Cloud vs. PaaS Cloud. All these dimensions are projected for both Revenue and Terabytes. There is a strong correlation and interaction between the latency/capacity dimension and HDD/Flash dimension. Wikibon provides detailed breakdown of the storage projections for Premium clients.

- Brian Gracely

With the EMC Federation in transition, VMware needs to take a greater leadership role in delivering cloud services. VMware's ability to lead their customers transitions to Hybrid Cloud requires them to deliver a more robust, more agile vCloud Air platform.

- Brian Gracely

While the majority of Enterprise CIOs continue to have Hybrid Cloud near the top of their priorities, the solutions in the marketplace often fall short of expectations. Wikibon analysts look at the state of Hybrid Cloud from a C-Suite perspective.

- Ralph Finos

Maturity by industry is a function of customer and prospect skills, competitive drivers within the industry, the nature of the data in question as well as the complexity of the analytics required, and most importantly the problem that the prospect or customer is trying to solve. Identifying where customers are in their journey and helping them to reach the next level is key to vendor success.

- Ralph Finos

Both customers and vendors need to prioritize how they address adoption barriers. As with all emerging technologies, a full solution will often require extensive 3rd party participation, such as “data wrangling” and SQL data access tools. SQL data analysis offerings are maturing rapidly in the areas of application performance under greater user and data volume loads both from the Hadoop distribution vendors as well as 3rd parties. Other barriers, such as a skills gap across many roles, are more intractable. Smaller customers with fewer specialized practitioners in each role should include in their evaluations cloud-based solutions that are fully managed services.

- George Gilbert

Across all the primary roles involved in adopting Big Data applications, there are basic gaps in product maturity. However, IT leaders and practitioners should keep in mind that Big Data databases are part of a relatively immature ecosystems that requires advanced skills and integration technology in order to operate successfully. The ecosystem is evolving and maturing rapidly and there is a tremendous proliferation of technologies to augment early products.

- Brian Gracely

Wikibon Research has forecasted Public Cloud revenues from 2015 through 2026; with the expectations that 33% of all IT spending ($500B) will move to Public Cloud services within the next decade. The impact this will have on IT vendors and IT strategy will be significant as more applications focus on mobile and real-time data analytics.

- David Floyer

The premise of this research is that NAND flash storage will replace the majority of traditional magnetic drives as the primary storage media in enterprise data centers and hyperscale cloud services over the next 10 years. Flash Capacity shipped is projected to grow from 1,000 times less than HDD in 2012, be about equal in 2018, and grow to be about 1,000 more than HDD in 2026. CIO and senior storage executives should be planning to move from HDDs to NAND flash storage over the next few years, and plan completely different organizational and operational environments. The ability to provide multiple logical views of the same physical data will be a key capability that will significantly simplify data movement and significantly reduce costs. Most magnetic storage for enterprises will be found in distributed cloud services for mainly archive-type applications.