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Juniper open sources Contrail SDN software stack

Switch and router maker Juniper Networks snapped up Contrail Systems, a startup maker of software-defined networking (SDN) software, back in December 2012 for $176m just before Contrail was to uncloak from stealth mode. Juniper outlined its SDN plans a month later, and in May released the code for beta testing. Now, the code is …
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Dell, the man, prevails in quest to wrest Dell, the company, from Wall Street

So that's done, then. Shareholders of IT giant Dell have approved a $24.9bn private takeover bid put together by company founder Michael Dell, Silver Lake Partners, and borrowed dough from Microsoft and a slew of banks. Now Wall Street will be off Dell's back as it tries to reorganize itself for the future of computing, …
Rackgo systems include servers, storage, switching, and batteries

Server sales continue decline – time to bargain hard with your supplier

These are not easy days to be a server maker – and it very likely it'll never be easy again, so we had better get used to it. In the short run, there has probably not been a better time to wrestle with your server vendors on price since the dot-com bust. That said, the confluence of many factors is putting tremendous pressure on …
HP CEO Meg Whitman at Discover 2012

HP hammered in servers, storage, and PCs in fiscal Q3

Remember a long time ago, how Compaq put the squeeze on its supply chain, dropped the boom on PC prices, and essentially made it impossible for IBM, the former market leader, to stay in the PC business? Well, Dell and other competitors in the PC, server, and storage rackets are trying to do the same thing to HP now, and its …
Racks inside Rackspace's Sydney Data Centre

Rackspace spends big bucks to peddle its cloud vision

Rackspace Hosting may be growing its cloud business much faster than its overall business, but the company's rate of sales growth is declining and its profits are also getting pinched. It is tough not to root for Rackspace, one of the founders of the OpenStack cloud controller project and a big hoster that is transforming itself …

IBM furloughs hardware workers for a week to cut costs

New IBM System and Technology Group chief Tom Rosamilia and his boss, CEO Ginni Rometty, are tightening the belts of Big Blue's hardware business so that it can make its numbers in the current or future quarter. Rumors were going around that IBM was going to put employees working in the Systems and Technology Group on furlough …
Panoramic view of a slice of a SoftLayer data center

IDC: Sluggish China to pinch global IT spending this year

The IT market is tightening its belt again, say the prognosticators at IDC. A slowdown in spending in China has made them go back and re-examine their forecasts for spending on hardware, software, telecom, and services for the coming year and out to 2017. While this is nothing like the massive cuts seen during the Great …

Fed watchdogs sniff around IBM's cloud revenue reporting

IBM filed its quarterly 10-Q report with the US Securities and Exchange Commission Wednesday morning, and buried in that lengthy document is a note that the Securities and Exchange Commission (SEC) has raised an eyebrow over the way IBM recognizes its revenues for cloud computing. There is not a whole lot of detail about exactly …
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Dell committee says 'no way' on takeover vote change

The special committee of Dell board members that is reviewing the two proposals that will decide the fate of their company have told the Michael Dell/Silver Lake Partners consortium that they are not willing to change the voting rules, as the consortium had requested. And so the ongoing saga of Michael Dell's attempt to take the …

Red ink not as deep as expected for Fujitsu in Q1

Japanese IT conglomerate Fujitsu may have been been hit hard by the decline in PC and smartphone sales and seen its server business slump as well, but the weakening of the yen by the Japanese government to boost the indigenous economy has helped inflate overseas sales revenues, and an uptick in the systems integration business …
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Dell takeover latest: Icahn tells Big Mike where to stick his rule rewrite

Michael Dell and Silver Lake Partners, who want to take sole control of IT giant Dell, are willing to offer their fellow stockholders $13.75 for each share - but only if the rules on voting on the deal are changed. Unsurprisingly, top-gun investor Carl Icahn, who has a $14-per-share deal on the table, has now urged the Dell …
IBM Flex Chassis, front view

IBM taps ex-Lenovo and services exec to run PureSystems server biz

Several weeks ago, El Reg told you that Andy Monshaw, the long-time head of IBM's Storage Systems Division and more recently the general manager of the PureSystems modular systems business, had left Big Blue. Due to the Independence Day holiday in the United States, IBM was unable to confirm Monshaw's departure, but late last …

Intel's server chip biz holds steady ahead of Ivy Bridge Xeons

You might think that Intel would have been talking a bit more excitedly about the Xeon server chip lineup when it walked through its numbers for the second quarter yesterday. Particularly with the PC business on the skids. The workhorse "Ivy Bridge-EP" Xeon E5 v2 processors are slated for launch in the third quarter and the …

Dell board delays vote on private takeover deal

As has been rumored for days, the special committee of Dell board members in control of the proposed private takeover deal put together by company founder Michael Dell has put off the shareholder vote for the deal. The ceremony to give the thumbs up or thumbs down to the $24.4bn deal put together by Dell, the man, Silver Lake …
IBM's System zEC12 mainframe

Sales at IBM decline 3.3 per cent in Q2, profits hit by layoffs

IBM chairman and CEO Ginni Rometty needs the company to turn in much better quarters for the remainder of 2103 than Big Blue did in the first quarter, when it missed its numbers by more than $400m. In the second quarter, IBM did a little better in its systems and services segments and the core business faired alright if you …

Dragged-out Lenovo server deal whacks IBM's earnings for 2013?

IBM has never admitted that it has been trying to sell its System x and BladeCenter server business to Chinese PC and system maker Lenovo, which also took its venerable and usually unprofitable PC business over at the end of 2004. But in a conference call with Wall Street analysts going over Big Blue's second quarter financial …
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Big Blue cedes software and systems training biz to partners

IBM is getting out of selling education and training services to customers for its Software Group and Systems and Technology Group, and shifting to an indirect sales model through a new training channel that it has set up. Steve Mills, who is in charge of the converged Software and Systems Group (which even IBM doesn't talk …
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Icahn offers to sweeten his Dell deal with warrants

If either Michael Dell or Carl Icahn wanted to win a deal to take control of Dell, the company, all they would have to do is pony up some of their own cash hoards and that would be that. But this is business, and the last thing in the world you do is spend your own money. In the latest move, corporate raider Icahn is sweetening …
Dell logo in crosshairs

Dell & Friends get the green light on take-private deal

The word on the street late last week was that Michael Dell, Silver Lake Partners, and the banks behind them, who are trying to take the IT giant that bears the founder's name private through a leveraged buyout, were not going to raise their $24.4bn offer to counter a competing recapitalization plan put forth by Icahn …
A storm is brewing (Mali, Sahel). Foto: F. Guichard & L. Kergoat, AMMA project, CNRS copyright.

PC decline whacks 2013 IT spending projections

We're now halfway through this year, and it's therefore time for Gartner's prognosticators to review what is going on in the global economy, how IT vendors fared in the first half, and to rejig their IT spending projections for 2013. While the news is not good, it's not particularly bad, either. According to Gartner, global IT …
Dell logo in crosshairs

Icahn lines up prodigious Dell deal dough

Carl Icahn, the activist investor* who has been providing the only alternative to Michael Dell's plan to take the IT company that bears his name private, has finally lined up the financing that he says will be necessary to acquire Dell at a higher price than Dell, the man, is offering. In a letter to Dell shareholders and the …
Justin Rattner

Intel CTO Rattner steps down to attend to 'pressing family matter'

One of the most familiar faces of chip giant Intel is CTO Justin Rattner, and he has just announced his departure from the company. Rattner joined Chipzilla in 1973, and six years later he was the company's first principal engineer. He was named its fourth Intel Fellow in 1988 thanks in large part to his work in parallel …
The HP Moonshot Gemini 1500 server chassis

Eye spy future HP Moonshot server nodes

HP was at the International Super Computing 2013 conference in Leipzig, Germany, last week, showing off its ProLiant rack servers as well as the SL6500 Scalable Systems tray servers that have been used to build some of the most powerful supercomputers in the world. And, with no tongue in cheek at all, HP's server geeks were also …
What the Tianhe-2 super should look like in its final home

HPC server sales spike: Buyers get chops around juicy cheap flops

The plain vanilla server racket may have struggled in the first quarter, but sales of machinery aimed at high performance computing workloads -both traditional simulation workloads and new-fangled "Big Data" jobs - bucked the downward trends in the first quarter, according to the latest research from IDC. And, not even remotely …
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IBM's $1bn layoffs latest: Now axe swings in US, Canada - reports

Scores of workers have been made redundant at IBM's Systems and Technology Group in the US, according to a union, soon after the tech titan warned of sweeping job cuts worldwide. Following a $400m shortfall in mainframe and software sales in the first quarter of 2013, employees were warned that a "workforce rebalancing" act (a …
firing range - target in cross hairs

Lenovo sets sights on server, storage incumbents

Chinese PC maker and server and storage wannabe Lenovo Group has an appetite to buy itself some market share in the systems racket, say the company's top brass. In fact, it wants to double its market share in this space. That seems like a less ambitious goal than acquiring IBM's System x and BladeCenter x86-based server business …

Big Blue blows big green in SoftLayer public cloud gobble

So much for that whole strategy that cloud biz SoftLayer came up with (of building its own cloud controller and basing its server fleet entirely on Super Micro iron): because Big Blue bought SoftLayer today for an undisclosed sum. Rumors were going around back in March that both IBM and EMC were sniffing around SoftLayer - a …
Rackgo systems include servers, storage, switching, and batteries

Server racket 'challenging' in Q1, says IDC

It is not a fun time to be peddling servers, but it is probably a great time to be buying them, according to the box-counting wizards at IDC. Both server revenues and shipments were down in the first quarter, marking the fifth of the past six quarters where revenues took a dip. There are so many different kinds of transitions …

Cisco gobbles cloud power meter biz JouleX for $107m

The cash-laden and ever-acquisitive Cisco Systems is at it again, and has snapped up JouleX, which has created a set of cloudy software tools to monitor and manage power consumption in the data center. Cisco is shelling out $107m to acquire JouleX, and said in a statement that this price included cash and retention-based …
Rackgo systems include servers, storage, switching, and batteries

ODMs and DIYs chomp x86 server racket

If the server market is an indicator of the health – or lack thereof – of the global economy, then we're not quite out of the woods of the Great Recession, despite the exuberance on the global stock markets. According to the box counters at Gartner, server revenue worldwide were down 5 points to $11.83bn in the first quarter …
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SAP shuffles execs to chase cloud success

It is time for musical chairs at SAP, and the desire to ramp-up products that run on the cloud and sell more of them is calling the tune to which the executives are dancing. The German software giant said in a statement that Lars Dalgaard, head of its entire cloud operations and the founder and CEO of SuccessFactors, was leaving …
HP CEO Meg Whitman at Discover 2012

HP: Hey, it could easily have been so much worse

If you were expecting HP to bring good news to the IT industry when it reported its financial results for the fiscal second quarter, you are no doubt sorely disappointed. Well, unless you consider that in terms of profit declines it could have been a lot worse. In the quarter ended April 30, HP was down on all fronts, and CEO …
VMware's monster VM

VMware taps ex-Ciscoer as channel chief

Just ahead of the formal launch of VMware's "Project Zephyr" vCloud Hybrid Service public cloud on Tuesday, the company has appointed a new channel chief. And the timing is not accidental, with VMware's channel being a key component of its hybrid cloud strategy. It's easy to see why VMware wants to build its own public cloud …
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Dell's server, net bizzes do well, but PCs slammed as expected

If Michael Dell and his partners had hoped to turn in a bad quarter to help justify the relatively low price the Dell & Friends consortium wants to pay to take the IT giant private, Dell's sales force in the enterprise server, networking, and services units did not do their part to help. The PC business did – but not as much as …

Cisco boosts sales and profits despite softness in switching and routing

Cisco Systems took a big bet more than four years ago when it jumped into the server market with its Unified Computing System blade and rack servers and started peddling converged Nexus switches at the same time. Those bets have paid off, and rising sales of these products are filling in the revenue gaps in the quarter ended in …
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IBM to push Linux apps on Power iron in China, then elsewhere

IBM is opening a Power Systems Linux Center in Beijing, China, in the hopes of getting more local ISVs interested in its Power Systems iron and luring them away from x86-based systems. With the Power Systems business taking it on the chin in IBM's first quarter – revenues fell 32 per cent compared to a year ago – you can bet …
Dell logo in crosshairs

Icahn, SAM to give MickeyD the boot if they take over Dell

Michael Dell wants to take his company the company that bears his name private, but he might be polishing up his resume instead in a few months. Activist investor Carl Icahn and Southeastern Asset Management made it clear last Friday that they were not happy with the proposed $24.4bn takeover of Dell by the company's founder, …

Nvidia sales and profits rise despite PC slump

Graphics and ARM chip maker Nvidia is sailing smartly through the shrinking PC market, boosting both sales and profits – and doing so despite its transitions to Tegra4 and Tegra4i processors for smartphones, tablets, and other devices. In the first quarter of fiscal 2014 ended on April 28, Nvidia's overall sales rose by 3.2 per …
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Price cuts, OpenStack transition make Rackspace miss in Q1

Rackspace Hosting did not turn in the kind of first quarter it wanted for the period ending in March, so expect knee-jerk reactions and hyperventilating from investors who think it can't stay in the cloud game against the likes of Amazon, Google, and Microsoft. Its results did not meet Wall Street's expectations, with only 20.2 …
Dell chairman and CEO, Michael Dell

Dell snaps up Enstratius for cloud wrangling

Having bought a slew of management tools for server virtualization and clouds either directly or through its acquisition of Quest Software, the last thing you might think IT giant Dell needs is another cloud management tool. Wrong. Dell has just inhaled Enstratius to give it a SaaSy cloud control freak to complement its existing …
Dell logo in crosshairs

Report: Icahn spoiling for a proxy fight with Dell over buyout deal

Activist investor (we hesitate to use the term vulture capitalist because it gives vultures a bad name) Carl Icahn has said that Michael Dell and the consortium of partners he has put together to take his eponymous company private for $24.4bn is not paying enough for the company. According to reports, Icahn is now getting ready …
IBM CEO Ginni Rometty

Report: IBM, Lenovo x86 server deal hits the skids

Only late last week, the scuttlebutt was that IBM and Lenovo Group were moving along at a rapid pace so Big Blue could offload all or part of its System x x86 server business to the Chinese builder. Now, the latest word is that the deal has stalled as the two companies are haggling about the price. The first rumors about a …

Fujitsu sells off microcontroller and analog chip biz to Spansion

It's been a busy day at Japanese IT giant Fujitsu, with the company reporting its financial results for its fiscal 2012 year ending in March (that's not a typo) and also announcing that it has spun off its microcontroller and analog device business to the flash-memory maker Spansion. Back in February, Fujitsu announced a massive …
Azure Index

Azure is Microsoft's billion-dollar baby – maybe

Curt Anderson, CFO for Microsoft's Server & Tools Business, was feeling chatty during an interview with Bloomberg, bragging that in the past year Redmond topped the $1bn sales mark with Windows Azure. Or, maybe not. The Bloomberg story doesn't quote whatever Anderson said directly, and if you read down a bit further into the …
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HP mashes up ProLiant, Integrity, BladeSystem, and Moonshot server businesses

It's a time of transition in the systems business. And HP, the world's largest server maker in terms of volumes and possibly soon (again) in terms of sales if IBM doesn't stop the decline in mainframe and Power system sales or sells off its x86 server biz to Lenovo, is tweaking its server units and the executives who run them. …

Fat boxes keep Super Micro from slumping

Super Micro – king of the whitebox server makers – turned in a pretty good quarter ended in March, the third quarter of its fiscal 2013, not by pushing more iron, but by peddling a smaller amount of much heftier iron. In the quarter, sales were down a bit sequentially – which was no surprise at all, given the traditional bump in …
IBM CEO Ginni Rometty

Lenovo deal to buy IBM x86 server biz moving along fast

It is becoming increasingly clear that IBM CEO Ginni Rometty is annoyed with the performance of the company's systems business. Annoyed enough to spin off all or part of its System x server business to China's Lenovo Group, according to rumors that surfaced last week. The US channel trade rag CRN broke the story of an impending …
A storm is brewing (Mali, Sahel). Foto: F. Guichard & L. Kergoat, AMMA project, CNRS copyright.

Citrix hits turbulence, cuts profit outlook

Citrix Systems is the latest big IT vendor in the Q1 earnings season to report unexpected delays in closing orders, particularly with its key XenDesktop application and desktop virtualization product. The company has cut profit expectations for Q2 and for the full year, sending shares down seven per cent to just under $63 a pop …
IBM CEO Ginni Rometty

IBM CEO Rometty swaps heads of strategy and servers

Ginni Rometty, who has been CEO at IBM for a year and a half, is making two big changes in the upper echelons of her management teams; she is swapping the head of corporate strategy and the head of its Systems and Technology Group, and it is presumably to get better results than IBM showed in its first quarter of 2013 in its …
The three new Juniper EX9200 modular switches

Juniper pushes up sales and profits in Q1

The top brass at Juniper Networks are breathing a little bit easier as the company turned in numbers that show it is growing despite taking a big hit in sales of gear, software, and services to the US government in the first quarter. In the quarter ended in March, Juniper nudged up revenues by 2.6 per cent to $1.03bn, and net …

Opinion

The full Spanglish breakfast: mealy pudding, bacon, black pudding, sausages, fried egg, toast
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Trevor Pott

Can the storage giant overcome a lack of necessary leadership?

Chris Mellor

Why overlapping kit from a merger equals a disaster in waiting
management cloud2

Gavin Clarke

The executioner turns gambler as HP's PCs are set to go

Features

No, silly... he was the fall guy for years of Finnish folly
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Frodo and the Ring
Microsoft's strategy is to make Store apps popular. Good luck with that