Worldwide IT spend rebounds but European outlook cloudy

Capital spending on PCs, servers, storage, and network equipment has soared in recent quarters as businesses take advantage of the general economic recovery to catch up with overdue spending on critical hardware infrastructure.

Market watcher International Data Corporation (IDC) predicts that worldwide IT spending will increase by 3.8 percent this year, to reach $1.47 trillion. Hardware will lead the way, with growth of 6.4 percent, while software and services spending will increase by 3.1 percent and 1.5 percent respectively.

Emerging markets such as China and India are leading the charge, as they invest in new technology to support export-driven growth. And in the US, government stimulus funding has provided a much-needed boost.

“Just as capital spending on hardware is the first thing to fall in a recession, it’s also the first thing to come back up for air when IT budgets are surfacing above water,” said Stephen Minton, vice president of Worldwide IT Markets and Strategies at IDC. “There is undoubted relief that capital spending and general IT budgets are up, but it’s also clear that some weak spots persist.”

One of those weak spots is Western Europe, which is being impacted by the current debt crisis in Greece. IT spending in Western Europe is expected to be flat this year, having plunged 6.5 percent in 2009. According to IDC, any further strains on the confidence of European businesses and consumers could cast a cloud over the outlook for the second half of 2010.

HP wields jobs axe in $1 billion transformation

Hewlett-Packard (HP) expects to eliminate roughly 9,000 positions over a multi-year period by investing $1 billion in automating corporate IT systems.

The company said it will consolidate its Enterprise Services’ commercial data centres, management platforms, networks, tools and applications, to create a more scalable, modernised and automated IT infrastructure. Once complete, the transformation is expected to generate annual net savings after reinvestment of between $500 million and $700 million.

“Over the past 20 months, we focused on integrating EDS and improving profitability,” said Tom Iannotti, senior vice president and general manager, HP Enterprise Services. “Now that the integration is largely complete, we have identified significant opportunities to grow and scale the business.”

New drivers of business transformation

Meanwhile, social media, cloud and mobile computing have been hailed as the new drivers of business transformation. Those companies not serious about exploiting these technologies could be ‘left in the dust’ by competitors, it is claimed.

More than 120 CIOs and IT executives met recently at the CIO Executive Leadership Roundtable in Chicago, US. Hosted by the Chicago Chapter of SIM (Society for Information Management) and produced by HMG Strategy, the roundtable provided a high-level, private venue for sharing crucial knowledge, exploring new strategies, and envisioning new revenue streams via use of IT.

“This roundtable was a clear call to action,” warned Hunter Muller, President and CEO at HMG Strategy. “CIOs really have to take a good hard look at these newer technologies and figure out how to use them as value drivers – before their competitors do…”

Cloud goes Green

Hosting and cloud computing player Rackspace has been announced as the winner of ‘IT Operator of the Year’ in the Green IT Awards.

More than 75 organisations were nominated, with winners selected by readers of Green IT Magazine. Rackspace has adopted several initiatives over the past two years to help reduce its environmental impact, including:

• Deployment of ambient cooling technology at its data centre in Slough
• The planting of a tree for every new hosting customer (via the International Tree Foundation)
• The recycling of materials and use of paper from sustainable sources at Rackspace offices

“We’ve worked hard not only to make our customer offering sustainable, but also introduce internal initiatives such as employee education and recycling,” said Rackspace Managing Director, Brian Thomson. “We plan to continue to introduce even more initiatives over the coming years and work harder than ever to be green.”

One not so green technology sector is that of mobile handset manufacturing, where efforts are being thwarted by consumer usage patterns.

According to Heavy Reading Mobile Networks Insider, characteristics of green handsets include use of recycled materials, reduced use of toxic materials, and availability of more energy-efficient battery chargers, as well as chargers driven by alternative energy sources such as solar cells.

However, user habits remain the biggest obstacle to making mobile handsets more eco-friendly. “Discarding of still-usable handsets and failure to properly dispose of or recycle handsets are potentially significant contributors to environmental problems,” said Aileen Arcilla, author of the report Mobile Handsets: It’s Not Easy Being Green. “With the number of mobile subscriptions expected to exceed 5 billion over the next few years, the biohazards of handset disposal are likely to grow.”

Er, just one more thing…

Would you book a holiday through oldmanshaven.com? Or visit ipwine.com for a bottle of Chardonnay? And would you download music from mp3shits.com?

‘Slurl’ is the term given to a badly-named URL and is the subject of a new book by Andy Geldman, a self-employed computer programmer who originally coined the word.

Having discovered slurls in 2006 as ‘his true calling’, Andy set up a website and devoted all his spare time to hunting down more gems, with the slurls website bringing in over 75,000 visitors in 2009. His book takes the reader on a global journey to look at the special charms of technology and big business.

“There have always been unintentionally funny names, but the Internet takes it to a whole new level,” said Geldman. “It’s all because you can’t have a space in your URL. A business called ‘IT Scrap’ is fine in the real world, but not so great online with itscrap.com!”

Great work Andy.

Can coalition Government create ‘super-fast broadband Britain’?

The Conservatives and coalition partners the Liberal Democrats will help to get the UK online if they stick to the Conservatives’ pre-election plans to make the UK a European hub for hi-tech, digital and creative industries. But the spectre of the rural broadband challenge lingers.

According to Elfed Thomas, ceo at fibre optic infrastructure specialist, i3 Group, the Conservatives were the only party to deliver a ‘structured and believable’ strategy for super fast broadband, with pre-election plans to build a nationwide network by 2017.

However, Thomas warned that the rural broadband issue persists, and that it won't be solved without the aid of public spending. “Often, the figures to build a commercially-viable infrastructure just don’t stack up. I am in favour of their idea to use the BBC licence fee to fund connectivity in areas with limited access,” he said.

The question now is whether super-fast Broadband makes the cut [as it were], with the axe soon to be taken to the UK’s public finances.

According to the Office of National Statistics, the UK recorded a general government deficit of £159.2 billion in the calendar year 2009. This was equivalent to 11.4 percent of GDP. And at the end of December 2009, general government debt was £950.4 billion, or 68.1 percent of GDP.

The Maastricht Treaty’s ‘Excessive Deficit Procedure’ sets deficit and debt targets of 3 percent and 60 percent respectively for all EU countries.

Cloudy future for data

The amount of digital information created annually will grow by a factor of 44 between 2009 and 2020, as all major forms of media complete the journey from analogue to digital. The number of files, images, records and other digital information containers is also forecast to grow, by a factor of 67.

These are the findings of an EMC-sponsored study by IDC, which predicts that more than a third of all digital information created annually will either live in, or pass through the cloud by 2020. The market watcher expects cloud computing to stimulate more than $1 trillion in incremental business revenue by 2014.

“This year’s ‘Digital Universe’ study exposes many of the most pressing short- and longer-term strategic issues CIOs grapple with as they map out their IT strategies and investments,” commented Joe Tucci, chairman and ceo, EMC Corporation. “They’re quickly discovering that, to remain in the game, they need to do things differently, transforming traditional infrastructures into private cloud data centres that offer internal and external customers IT as a service.”

Clouds gather

IBM is one major player to have advanced its cloud credentials this week, with its acquisition of Cast Iron Systems, a provider of cloud integration software, appliances and services. Although financial terms were not disclosed, IBM said the acquisition gives it the ability to help businesses rapidly integrate cloud-based applications and on-premise systems.

“The integration challenges Cast Iron Systems is tackling are crucial to clients who are looking to adopt alternative delivery models to manage their businesses,” commented Craig Hayman, general manager, IBM WebSphere.

The IBM Software Group has acquired more than 55 companies since 2003, with its latest purchase advancing its ability to offer a ‘hybrid’ cloud model, whereby enterprises can blend data from on-premise applications with public and private cloud systems.

True hybrid hosting with easy server upgrades is the promise now being put forward by managed Web hosting provider, Liquid Web. The company’s ‘Storm Bare Metal’ is claimed to be ‘a revolutionary server technology’ that allows users to provision and manage private dedicated servers with cloud hosting features.

Users can deploy flexible hybrid hosting configurations that contain a mixture of ‘Storm Cloud Servers’ (cloud servers managed from within a Web browser) and Storm Bare Metal dedicated servers. The latter enable users to specify the exact processor, memory and hard drive configuration that is right for their project.

Er, just one more thing…

A thought-controlled software application known as ‘Jedi Mouse’ is being submitted as a patent application to the United States Patent and Trademark office. The software, which sells for $99.00 and requires the use of a wireless headset, allows users to navigate the computer, click and double click to open programs, compose email and send, ‘using the power of their mind’.

The neural processing technology is being developed by Jedi Mind, who claims it is on pace to create one new thought-controlled application per quarter. Jedi Mouse is aimed at typical PC users, associations for the disabled, clinics and non-profit organisations.

The company also said that it intends to patent all of its proprietary products to provide a stable of intellectual [sic] properties.

Times are tough no doubt. But just in case you've no 'Plan B' as the global downturn continues and your current job/business ceases to exist, help is at hand. 'How to Get a Job You'll Love - a practical guide to unlocking your talents and finding your ideal career' (ISBN 9780077121808, £12.99) by top career transition coach and author John Lees, promises to answer the plethora of classic career conundrums we face every day.

For example, what are the smartest strategies for impressing your boss? How can you effectively market yourself within an organisation? Why do you need to? What is 'career management'? How can you find new fields of work and completely change careers? How can you avoid 'Monday Blues' and love what you do every day of the week? [Please, please, please - I need answers!]

Says Lees: "No job is entirely recession proof. Right now job security is the top issue for people and there are many things you can do to improve the chances you'll still be in your job in 12 months time. Here are some strategies to set you on your way…"

Ten-Point checklist for taking control of your career in difficult times:

1. Look at what's working, rather than what isn't. Which parts of your job are still effective even in difficult times?
2. Find leverage. Concentrate your efforts on projects which are seen to be fireproof, or ways of protecting your income stream.
3. Find a fast-track mentor - an informal arrangement with someone more senior than you who can help you decode your organisation while it's going through tough times.
4. Don't ask for a pay rise just because everyone else is reacting to rising costs. Demonstrate your value - not your cost.5. Go way, way beyond your job description in value-adding ways. Career progression, ultimately, is not a question of what you do, but how far you are seen to be doing the things that matter.
6. At the same time, work smarter not harder on tasks which your organisation recognises as things that make a difference.7. Stay on winning teams. This is the time to negotiate a move away from a dead-end role, or a part of the organisation which is seen as under-performing or peripheral.
8. Stay in touch with changes in your sector, and don't stop networking - both for industry knowledge and for insider tips on the hidden job market.
9. Don't adopt cynicism of the marketplace. Not all organisations and markets are in decline - don't miss opportunities by seeing your glass as constantly half-empty - adopt a glass half-full mentality.
10. Stock your lifeboat before jumping ship: understand what you are really looking for rather than passively reacting to advertised or headhunted opportunities. Well-informed job seekers find great jobs in tough times.And if none of these work for you, then perhaps there is another way - sharpen something else and eliminate the competition…

New 'Knives on the Net' Threat

It is becoming increasingly easy to purchase deadly weapons online at a fraction of the retail price, often with no regulations controlling who is purchasing them and why.

Research by MarkMonitor (a provider of enterprise brand protection), is said to demonstrate the ease with which a variety of knives - from pocket knives to machetes - can be purchased over the Internet from high-street retail brands, e-commerce, online auction and exchange sites with little to no restrictions. Over a three-day period in July 2008, MarkMonitor found that almost 9,021 knives (worth approximately £65,000) were available for sale via online auction sites. 55% were available to purchase instantly with no warnings or restrictions.

The top five types of knife being sold online over the three day period include:

• Hunting knife - 1333
• Lock knife - 1259
• Army knife - 786
• Pocket knife - 707
• Pen knife - 498

MarkMonitor has also checked the websites of the UK's top department stores and retailers and out of a list of six top retailers, four were selling knives with no warnings, age limits or restrictions and may therefore be infringing legislation. Nice to know that we're taking knife crime seriously…

And if you are looking to trim some weight this year [and you really are as vain as a Z-list celebrity] then why not get your holiday snaps re-touched, courtesy of PicWash Slim?

Look Slim in Summer Bikini Photos

With paparazzi photos highlighting the latest in celebrity cellulite, taking pictures in bathing suits has become an almost definite no-no. Enter PicWash Slim. This new photo re-touching service promises to make you and your friends look fabulous in your bathing suit photos and have beautiful summer pictures you can share with the world.

Since August 2007, the site has been retouching user photographs for use on social networks and photo album sharing sites around the world. This week it launches its third service, PicWash Slim, to help alleviate the summer picture jitters. Costing $15 per photo, PicWash's team of designers, based in Miami, Florida, will use advanced techniques to slim the most requested areas of the body. These may include: upper arms, waist, stomach, thighs, cellulite, and general bulges. The results will be subtle and natural looking. [But remember, it is just the photos they do this for…]

The benefits of looking good in your photos are widely recognized. "Today an abundance of scientific research reveals that the physical attractiveness of a pictured person substantially affects interest to meet and to associate beyond first meeting," says Gordon Patzer, Ph.D, author of 'LOOKS: Why They Matter More Than You Ever Imagined.' Perhaps there is a market for this sort of thing, given the continuing success of social networking sites such as Facebook…

Social Networking Explodes Worldwide as Sites Increase Their Focus on Cultural Relevance

Web measurement company comScore, Inc. has released a study of worldwide usage of social networking sites, indicating that while the growth in new users in North America is beginning to level off, it is burgeoning in other regions around the world. During the past year, the total North American audience of social networkers has grown 9 percent compared to a much larger 25 percent growth for the world at large. The Middle East-Africa region (up 66 percent), Europe (up 35 percent), and Latin America (up 33 percent) have each grown at well-above average rates.

"While the social networking trend first took off in North America, it is beginning to reach a point of maturity in the region," said Jack Flanagan, comScore executive vice president. "However, the phenomenon is still growing rapidly in other regions around the world - especially as the established American brands turn their focus to developing markets."

And comScore believes that a focus on tailoring a site's relevance to local markets is playing a big part in the continuing success of monoliths such as Facebook. "Facebook has done an exceptional job of leveraging its brand internationally during the past year," added Flanagan. "By increasing the site's relevance to local markets through local language interface translation, the site is now competing strongly or even capturing the lead in several markets where it had a relatively minor presence just a year ago."

comScore Enhances Reporting of Ad Networks' Audiences

comScore, Inc. also announced this week that it will provide enhanced measurement of the audiences for online advertising networks. The new reporting structure will provide two sets of measures-the "potential reach" for each network and an "actual reach" reading.

The 'potential reach' measure will be a calculation of the unduplicated visitors to all sites with which each ad network has contracted to deliver advertising. The definitions will be based on written documentation and confirmation provided by the networks. This measure represents the largest potential reach a network could deliver if all parts of the network are used to deliver ads.

he 'actual reach' measure will represent the reach of the ads that are actually served by the network during a given reporting period. In order to report 'actual reach', networks must participate by providing comScore with the appropriate identification protocols for rendered ads. Consequently, only participating networks will be included in the 'actual reach' report.

We believe these two toolsets provide the information that ad agencies need when they are deciding on which advertising networks to consider for ad buys. And, the ad networks will have the high quality, third-party information needed to compete for advertising dollars," commented Magid Abraham, President and ceo, comScore, Inc.

In the news

Gov't battles EU to use passenger data (read full story)

The UK Government is battling European Union (EU) proposals to restrict the way it uses air passenger data to monitor immigration. The Home Office claims that the names and travel plans it collects are crucial to control cross-border movements.

Sad day for the industry as Siemens exits telecoms sector after 160 years (read full story)
Its been a long and glorious history. The German company Siemens was one of the very first companies ever to lay telephone cables and make telephony switches, but this week it is exiting the industry after more than a century and a half.

On the wire

Ten Million Zombies Distributing Spam and Malware Every Day, According to PandaLabs and CommTouch (read full report)

IT security solutions provider Panda Security says that its laboratory for detecting and analysing malware - known as 'PandaLabs' - has just announced the findings from a joint report with CommTouch on the current state of spam. The report found that on average during the second quarter of this year, more than 10 million zombie computers (systems infected by
'bots' and controlled remotely by cyber criminals) were sending spam and emails with malware every day.

Entrepreneur.com's Social Networking Site Opens New Doors for 8.3 Million Businesses

A business-to-business marketplace designed specifically for entrepreneurs has been launched by Entrepreneur.com via US carrier Sprint. While other social networking sites feature an atmosphere of play, Entrepreneur Connect was created by the online authority in entrepreneurial business to facilitate company growth. The network is presented by Sprint to allow businesses to exchange ideas and network with small business owners across the country, providing them with more tools to help them get work done and build their companies.

Let LS Simple help you get the Government to pay 30% of your costs! (read full release)

The Simple Intelligent Power Management (Simple IPM) solution from LS has become the first comprehensive structured cabling system in the world to be eligible for enhanced tax relief under the UK Enhanced Capital Allowance Scheme (ECA). Enhanced Capital Allowances enable a business to claim 100% first-year capital allowances on their spending on qualifying plant and machinery.

eCrypt announces launch of BeCrypt Media Client, its CD/USB media/file encryption solution (read full release)

BeCrypt is able to provide approved data security and data handling solutions to meet requirements for transformational Government BeCrypt’s newly developed CD/USB media/file ‘zero footprint’ encryption solution, BeCrypt Media Client will be available from 1 September. It is currently going through CAPS approval, with FIPS 140-2 approval expected later in the year.

The early availability of BeCrypt Media Client gives government departments and other public sector bodies that need to adhere to Data Handling requirements an easy upgrade path to a CAPS approved solution.

In the bloggosphere

Cable is Cornering the Broadband Market

In the harsh glare of second quarter seasonality, the telcos’ wired businesses suddenly look not only like they are weakening… they look like they are positively collapsing.

Google's GMail Outage: Another Blow for 'The Cloud'

When will 'Cloud Computing' be as reliable as your ATM? Questions are asked about Google’s ability to manage, protect, and make available your data better than you can. Based on recent history, bloggers are not convinced…

Er, just one more thing…

Samsong, Samsung or Samstrung?

A 'phenomenal competition' has just launched on borders.co.uk, offering visitors the chance to win a cutting-edge laptop. In association with Currys, Borders is offering customers the chance to win a brand new Toshiba laptop, in return for answering the extremely difficult question above.

No doubt, Borders will be looking to collect a phenomenal amount of personal data in return for entering this fantastic and brain-taxing competition.