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.

Forget red, yellow and blue, it’s the green vote that will make or break the 2010 election

So says British energy saving specialist, Energenie, who claims that voters are tired of half-hearted promises and spin when it comes to green policies. Research conducted by the company found that 50 percent of people intended to vote for a party specifically because of its green policies, leading Energenie to conclude that the election could hinge on whether politicians play the green card with conviction.

“The message to politicians couldn’t be simpler, don’t just talk green, be green,” warned Alan J. Tadd, md at Energenie.

Although some politicians may not be living up to their ‘green’ credentials, a number of businesses are. Construction and housing company, Willmott Dixon, said this week that it has issued 1,300 ‘ecobuttons’ to clients, and is planning a further 2,500 for its own staff nationally. Supplied by Greenfield Print and Promotion, ecobuttons are power-saving devices that plug into PCs and, when clicked, reduce electricity consumption when the machine is not in active use.

Savings resulting from the use of each ecobutton have been calculated at over £25 and 85kg of carbon per annum.

Web-based managed services provider, Akamai Technologies, has also announced a new sustainability drive, focused on enhancing the carbon efficiency of its global delivery network of 61,000 servers. This will be achieved (in part) by improving the efficiency of the hardware and code employed. Last year, a similar initiative by Akamai saw an 86 million-pound reduction in CO₂.

“Moving forward, and in collaboration with our customers, we plan to use the information we collect to identify and implement additional best practices,” said Paul Sagan, president and ceo, Akamai.

Cable wins political broadband challenge

In rather more dubious election/technology ‘news’, broadband comparison service Top10.com released the results of its challenge to find the senior politician with the fastest broadband in their constituency.

The somewhat aptly-named Vince Cable of the Lib Dems topped the charts, with constituents in Cable’s Twickenham receiving broadband speeds averaging 9.38Mbps. This was over two megabits faster than the 7.03Mbps enjoyed by residents in Alistair Darling’s constituency of Edinburgh South West, which came second. With 6.05Mbps, North Southwark & Bermondsey, the constituency of Simon Hughes, Shadow energy spokesman (Lib Dems) came third. The national average for broadband, according to Top10.com’s speed test, is 5.25Mbps.

And in what could prove to be a somewhat self-fulfilling prophecy, Nick Clegg pushed Gordon Brown into third place in the ‘broadband battle’ of the party leaders. Clegg’s constituency’s speeds (4.90Mbps) were 1Mbps ahead of those of Gordon Brown (3.91Mbps), but behind those of David Cameron (5.91Mbps).

Spooky or what?

End of the floppy, but beware digital black hole

With audio cassettes, video tape and vinyl already largely consigned to history, the 3.5-inch floppy disk has become the latest victim of technology’s unremitting evolution. eWeek reports that Sony will cease production of floppy disks by March 2011. Sony first launched the 3.5-inch floppy in 1981.

One technology attempting a comeback is that of the Polaroid camera. Three years after the last Polaroid camera was made, Polaroid Corporation launched the Polaroid 300 this week.

Although it bears some resemblance to older models, it has undergone a major face-lift overseen by Lady Gaga, who was appointed creative director in a bid to ensure the camera’s retro chic [just like Lady Gaga’s?] appeals to a younger generation.

The Polaroid 300 comes with an automatic flash and four scene settings, but uses self-developing film – just as its iconic predecessors did. Polaroid Corporation was co-founded in 1937 with the first instant camera launched in 1947. It became so successful that by the 1960s about half of all US households owned a Polaroid camera.

News of the Polaroid’s return will no doubt be met with enthusiasm by one scientist, who has spelt out the dangers of digitalisation.

Jerome P. McDonough, assistant professor in the Graduate School of Library and Information Science at the University of Illinois, warns of a looming ‘digital dark age’ originating from the mass of data spawned by the ever-growing information economy – at last count, 369 exabytes worth of data, including electronic records, tax files, email, music and photos. An exabyte is 1 quintillion bytes; a quintillion is the number 1 followed by 18 zeroes.

McDonough’s concern is that, with ever-shifting platforms and file formats, much of the data produced could eventually fall into a ‘black hole of inaccessibility’. For example, whilst the framed [Polaroid?] photograph will inevitably fade and yellow over time, the digital photo file may be unreadable to future computers – an unintended consequence of the rapidly digitising world that may ultimately lead to a ‘digital dark age’.

“If we can’t keep today’s information alive for future generations, we will lose a lot of our culture,” ” McDonough warned. “If we want information to survive, we really need to avoid formats that depend on a particular media type.”

Er, just one more thing…

Ash cloud sparks adultery spree 

Ash from the recent Icelandic volcanic eruption may have grounded planes and brought whole airports to a stand-still, but it doesn’t seem to have stopped thousands of Brits embarking on extra-marital affairs.

IllicitEncounters.com, the ‘dating site for married people’ [yes, you read that right] reports an unexpected surge in members and non-members logging in from mobiles. The site suggests the increase can be attributed to the thousands of Brits stuck here and abroad.

On average, IllicitEncounters.com receives around 7 percent of its traffic from mobile devices; on Friday 16 April, this figure had risen to 15%. Over the weekend, the site received over 8,500 visits from mobile devices; traditionally, this figure would have been around 2,900.

“Boredom and frustration mean that those stuck in airports across the world will be looking for the most stimulating, exciting thing they can get away with on their mobile,” said Adam Scott, ceo, IllicitEncounters.com. “And what’s more exciting than the idea of having an illicit affair?”

I would not like to hazard a guess, but I suspect there are certain premier league footballers that may have an answer.

Only in America… 'Wireless Devices may be at fault for certain health risks'

Hats [or should that be patches?] off to Yackie Telecom Inc., of the US, for what is quite possibly one of the worst examples of PR scaremongering and bandwagon-jumping I've seen in the last few years.

According to Yackie [a most appropriate name it seems], a European research initiative dubbed 'Interphone' has published "disturbing results coming especially from Northern Europe" regarding the potential health hazards of electromagnetic fields. Apparently, Interphone findings indicate an increased risk of cancer for heavy and long-time users of wireless devices [presumably mobile phones, although not specified until later in the release]. 

Luckily for us, Yackie has "taken a stand for consumer interests" by developing Yackie Safe - a simple patch comprising a series of micro antennas created to counter the effects of electromagnetic fields. Quite where users are supposed to put this patch is unclear, but I do have a suggestion for where Yackie should put this particular press release…

Will Guigle keep its cool?

Promising the biggest Web index with content-based relevance methods, results organised by ideas, and complete user privacy is Cuil - the latest challenger to Google's throne.

Launched this week, Cuil (pronounced 'cool') claims to have indexed 120 billion Web pages, three times more than any other search engine and says that its offering goes beyond today's search techniques of link analysis and traffic ranking to analyse the context of each page and the concepts behind each query. It then organises similar search results into groups and sorts them by category.

According to the company, it gives users a richer display of results and offers organising features, such as tabs to clarify subjects, images to identify topics and search refining suggestions to help guide users to the results they seek. Furthermore, it says that its methods guarantee online privacy for searchers, since pages are ranked on content instead of number of clicks, making personal data collection unnecessary and ensuring personal search history is always private.

It will be interesting to see how this latest development fares against the established search engine giants, and indeed, against Wikia Search - another search engine launched in January this year. The brainchild of Jimmy Wales, the founder of Wikipedia, Wikia Search uses a five-star rating system that lets users rate the relevance of results and then applies the score for the provision of future results. Although it has been criticised for returning poor results, it is argued that the service will improve as it matures.

VoIP to become the telephony of choice?

'As broadband continues to grow, VoIP will become the telephony choice says Tan Aksoy, Telappliant'

The number of broadband connections will grow from 323 million last year to 499 million by 2012, which is a jump from 18 to 25 percent of worldwide households, the analysts predict. Tan Aksoy, CEO, Telappliant, believes that this penetration will allow the true benefits of VoIP to be seen and dramatically increase take-up:

“The market for next generation voice communications is firmly established, but there is still a long way to go. VoIP has had some minor hiccups along the way. These issues have been ironed out and businesses need to learn to trust the technology.

"VoIP technology is heavily dependent on the user's Internet connection and bad experiences usually stem from insufficient bandwidth to support all functions running over the Internet. With broadband now reaching new heights in the UK, these problems should be a thing of the past."

Hmm - talk of 'minor hiccups' and 'bad experiences' appear a little understated. Granted, insufficient bandwidth is an obvious bottleneck, but network infrastructure [for the enterprise user especially] continues to prove just as big a pain point.

Building on social media

Comms agency Brodeur Partners has stated its intentions to use a social media monitoring platform to track what is being said online about brands, organisations and issues.

The solution monitors all forms of social media, including: blogs, top video-sharing sites, opinion review forums, photo-sharing sites and emerging media services like Twitter. [In which case, I will be especially nice about this idea…]

Radian6 Technologies Inc., is the power behind the platform, providing PR and advertising professionals with a dashboard (GUI) enabling the monitoring of all forms of social media, with results appearing in real-time, as discovered. Various analysis widgets give users the ability to uncover the top influencers, as well as which conversations are having an impact online.

On the wire

British e-commerce Very Different From Elsewhere in Europe (read full report)

British online merchants are increasingly attracting more international consumers, according to a report published by Pago eTransaction Services, the international Acquirer and Payment Service Provider.

Whereas consumers from Germany make up over 95% of custom in German online shops, only 45% of customers in UK shops are from the UK. Nearly one third of international customers stem from countries outside Europe, like the USA or Asia.

Some of the e-commerce trends identified include:

• No real Christmas season in UK online business
• e-commerce slowdown by British consumers at weekends
• UK consumers buy online during office hours
• Credit card dominates European e-commerce
• New payment methods are becoming increasingly important for European e-commerce

Government likely to slash its own tax income through new attack on contractor and freelance expenses (read full release)

"The government could be about to score a spectacular own goal," warns ContractorCalculator CEO Dave Chaplin, discussing HM Treasury plans to further burden the contracting sector costs.

"The latest consultation from the Treasury is asking whether contractors who work for umbrella companies as employees should lose their right to claim travel expenses," explains Chaplin. "Our business models, based on nearly a decade of contracting industry experience, suggest that the net contribution to the public sector will fall if contractors lose their rights to claim for travel expenses."

High carbon IT Managers must act before legislation… (read full release)

IT managers who are not actively managing their energy consumption are introducing unnecessary business risk and condoning waste. The IT industry has received yet another wake up call as Chancellor Alistair Darling announced plans that could lead to the compulsory building of 'zero carbon' commercial buildings, including data centres, by 2019.

In the bloggosphere

WiFI Worries Still Going Strong In The UK (from the gotta-freak-out-about-something dept)

A more rounded perspective on yet more scaremongering about the wireless demon - this time the effects of WiFi radiation on children…

Why is Dell trying to compete with the iPod?

Is Google planning Adsense for games?

Er, just one more thing…

Don't ask about salary in an interview (read full story)

Techies are being advised to avoid bringing up the big salary question in interviews if they want to impress. Graduates seeking a career in technology should instead focus on swotting up on the ins and outs of the company and the technology industry says IT recruitment company ITjobsforgraduates.com.

Yeah - sure right! Does that mean that you cannot ask how much something is when you buy it? Note to recruitment consultants: people living in the real world work to earn money (in the vast majority of cases). Yes - job satisfaction is great, and a 'varied and challenging role' keeps you on your toes, but at the end of the day, it's what puts dollar in your pocket and food on your table that is important.

Knock Knock? And I thought the Doctor Who joke was old…

World's oldest joke traced back to 1900 BC [can somebody please tell Jim Davidson]