The most recent articles from Computing

Fujitsu buys Siemens' stake in FSC

Angelica Mari — 2008-11-05T12:43:00.000Z

Angelica Mari, Computing, Wednesday 5 November 2008 at 12:43:00

Sale driven by need to reduce costs and refocus activity

Technology giant Fujitsu is to buy the 50 per cent stake held by Siemens in the Fujitsu Siemens Computers (FSC) joint venture for €450m (£364m) in the latest chapter of consolidation in the IT sector.

FSC supplies PCs, servers and other IT hardware in Europe. The move was prompted by a need to reduce expenses at both firms since operating profit at the jointly-owned company represented only 1.6 per cent of total revenue in the past financial year.

Another driver behind the sale is Siemens' intention to use the spare cash to concentrate on projects aimed at the energy, industry and healthcare sectors.

Widespread opinion in the industry is that Fujitsu will retain FSC's server division, while the PC and laptop business is likely to be offloaded, Lenovo being one prospective buyer.

However, keeping FSC as a separate entity from the group may prevent Fujitsu from driving post-acquisition growth, according to Lionel Lamy, research director at IDC.

"It is bewildering to say the least. We believe this is a mistake, compounded by the fact that Fujitsu's experience in keeping an arm's length relationship with an autonomous division did not work well as far as ICL was concerned in the late 1990s," he said.

The acquisition could have put a stop to the competition between FSC and both its parent companies, according to Lamy, but Fujitsu and FSC are instead likely to compete with each other for business.

"Cannibalisation could have been avoided by integrating the two service entities. This is now going to be made worse," the analyst said.

"And the acquisition of FSC does nothing to position Fujitsu higher up the value chain in terms of innovation, or in high growth services segments such as security services, network convergence and transformational outsourcing."

Intel prepares for uncertain fourth quarter

Iain Thomson in San Francisco — 2008-10-15T00:08:00.000Z

Iain Thomson in San Francisco, Computing, Wednesday 15 October 2008 at 00:08:00

Issues broadest ever range of expected revenues

Intel has revealed record third quarter results and said that while it is confident about the forthcoming quarter it is nevertheless preparing for a wide range of possible scenarios.

The company reported that it had had another record quarter, pulling in revenues of $10.2bn with an operating income of $3.1bn. However the company made its widest ever range of revenue forecasts for the fourth quarter, between $10.1 and 10.9bn, reflecting the uncertainty about global markets.

“The range of revenues is broader than we’ve ever given you before,” said chief executive Paul Otellini.

“That covers all possible situations within the market.”

He said that he expected the corporate side of the market to be soft as businesses restricted spending on systems and cut back, although the Asia/Pacific region wasn’t suffering. Consumer spending was expected to be light but continued interest in notebooks and netbooks remained strong.

Overall Otellini said that the company was in good shape to weather any financial downturn. The company has 20,000 staff less than its peak in 2006 and cash reserves of over $12bn with very little debt.

In an unusual step he also said that the company would issue a mid-quarter earnings statement on December 4th to update the markets on progress as the financial situation developed.

Overall Intel could come out of any financial downturn stronger than it went in, said chief financial officer Stacy Smith. Intel’s corporate structure and strong financial position should insulate it from a serious downturn and its competitive position would be strengthened he said.

“This is not a dot com style downturn,” said Otellini.

That was principally people selling computers cheaply on eBay from companies that melted down. Here emerging markets make a difference, as the cost of computing has come down there based on growing income levels. Technology will probably do well from a downturn, because we sell the tools of productivity.”

Overall mobile revenues accounted for 45 per cent of revenues for the company, with strong demand for the Atom range of processors. In the third quarter demand had outstripped supply he said but Intel would be able to meet demand by the end of the fourth quarter.

He also commented on AMD’s restructuring, saying that it didn’t change the fundamentals of the business.

“From my perspective nothing has changed,” he said.

“You still have someone having to build the capital and build products and sell them to someone else. The food chain hasn’t changed; there’s just one more person in the chain looking for a profit.”

Looking to the future the uncertain economic climate would not harm spending on new technology, such as the forthcoming 32 nanometre line of chips. The bulk of the costs of shifting to the new manufacturing process would come in the first half of next year but there were no plans to cut funding.

EU wants to widen IT free trade agreement

Tom Young — 2008-09-15T15:59:00.000Z

Tom Young, Computing, Monday 15 September 2008 at 15:59:00

Information Technology Agreement is outdated, says Mandelson

The EU has proposed to widen a deal that ensures global free trade for IT goods to include new types of hardware.

The Information Technology Agreement (ITA) was signed in 1996 and covers the trade in IT between the EU and countries such as the US, Japan and Taiwan.

Peter Mandelson, EU trade commissioner, explained that the ITA remained a milestone duty-free agreement but that its coverage needed to be extended and new products added. "It risks being left behind after 12 years of technological development," he said.

The US, Japan and Taiwan have accused the EU of breaking the agreement's zero-duty provisions by imposing import tariffs on products developed since it was brokered, including flat-screen LCD monitors.

After initial negotiations failed, the US, Japan and Taiwan in July requested the setting up of a dispute arbitration panel at the World Trade Organisation.

The pact has been credited with helping to encourage the Asian technology boom since its inception.

Intel goes for Core branding

Ambrose McNevin — 2008-08-11T10:43:00.000Z

Ambrose McNevin, Computing, Monday 11 August 2008 at 10:43:00

Latest branding efforts will be built about the "Core"

Intel's next generation of chips will be branded "Core."

The company is renowned for its obscure code-names for products in development and has opted to promote its products around a term that it has been pushing to become shorthand for speed and capacity of processors.

Intel's marketing efforts are key to the company, as it provides vast marketing budgets to PC and server manufacturers to push co-branded hardware based on its chips into the market.

Intel will use the the term "i7" as part of the "Core" brand building exercise.

The funds it provides are part of the the anti-trust investigation Intel is currently engaged in with the European Commission.

Intel lays out plans for chips with everything

Ambrose McNevin — 2008-07-25T17:13:00.000Z

Ambrose McNevin, Computing, Friday 25 July 2008 at 17:13:00

Intel is finally ready to join the crowded market for putting chips into non-computing devices

Intel has laid out its long-gestated plans for pushing its chips into everyday devices.

The world's largest chip firm said its systems on a chip development (SOCs) will see microprocessors used on everything from car systems to robots.

Other chip companies such as ARM, MIPs and IBM are already well-established in this market, says the Wall Street Journal.

Intel is relying on its established position in the computing market to boost its chances of success.

It is more than 10 years since Intel first predicted the advent of ubiquitous processor technology in new devices.

AMD takes £475m hit

Computing — 2008-07-14T10:41:00.000Z

Computing, Computing, Monday 14 July 2008 at 10:41:00

Integration of ATI acquisition drags chip maker down

Chip maker AMD said it will take a $948m (£475m) hit for its second quarter due to its $5.4bn purchase of graphics chip maker ATI in 2006.

The firm has been struggling to compete with Intel.

Meanwhile, Intel's problems with graphics chip maker nVidia might be coming to an end. The Wall Street Journal reported on Monday saying that a licensing dispute going back to 2004 may be about to be resolved.

Life gets interactive for Intel as it turns 40

Martin Courtney — 2008-07-10T16:47:00.000Z

Martin Courtney, Computing, Thursday 10 July 2008 at 16:47:00

Chip giant has plans for a brave new world of parallel computing, but needs developer support

Intel will use its forthcoming 40th anniversary on 18 July to outline expectations for a fresh wave of computer innovation.

“Two things will emerge: the visual computing experience increasing interactivity with the PC, and embedded computing whereby the internet is embedded into the infrastructure of everything we do,” said Intel general manager Pat Gelsinger.

Gelsinger cited as examples power delivery systems, rooms that change temperature as needed, and personal healthcare devices connected to the internet.

Intel’s multi-core chips and parallel computing will give software developers the additional processing power they need to develop sophisticated applications, he added.

“If programmers can take advantage of parallelism and deliver many threads of performance on a single client, it will drive innovation around the user interface,” said Gelsinger.

Microsoft is preparing Windows 7, with the release expected late next year, while Apple may deliver the next version of Mac OS X even earlier. Both look set to have a user interface based on touch-screen technology.

Speech recognition rather than keyboard input may also play an important part in the development of computer interfaces, although accuracy will have to improve.

On its 30th anniversary, Intel predicted the rise of flash memory, embedded controller chips in home appliances, and computers that boot in five seconds.

Flash memory supporting fast boot times has populated a multitude of mobile devices, but is only just starting to make its way into notebook PCs.

Euro chip maker NXP outsources datacentre management

Ambrose McNevin — 2008-07-09T13:22:00.000Z

Ambrose McNevin, Computing, Wednesday 9 July 2008 at 13:22:00

Global five-year deal sees Philips-owned company hand over IT management

European chip maker NXP has outsourced datacentre management services in a five-year, €155m deal.

Atos Origin was selected for the global deal which will include performance indicators including systems availability, continuous service, cost reductions and output performance levels.

"Our strategy focuses on increased efficiency by returning to our core activities. We were extremely pleased with the speed and flexibility during the procurement process. Both parties have worked together in close co-operation, always focussing on NXP’s business requirements," said Louis Luijten, CIO of NXP Semiconductors.

The chip maker, founded five years ago by electronics conglomerate Philips, is headquartered in Europe. The company has 37,000 employees in 20 countries and posted $6.3bn (£3.2bn) in sales last year.

Intel chip market domination continues as notebook sales surge

Martin Courtney — 2008-07-02T15:45:00.000Z

Martin Courtney, Computing, Wednesday 2 July 2008 at 15:45:00

Consumer notebook sales underpin Intel/AMD revenue market share

Intel took 79.7 per cent of world CPU revenues in the first quarter of 2008, down 0.7 percentage points from its 2007 first-quarter revenues market share, according to a report from market researcher iSuppli.

The latest figures for Intel were down one per cent on the processor revenues achieved in the fourth quarter of 2007.

Compared with the preceding quarter (fourth quarter 2007) AMD’s first-quarter market share by revenue dipped from just over 14 per cent down to 13 per cent, but was up 2.2 per cent year on year, indicating the chip maker is steadily growing sales.

Both first-quarter sets of revenues for 2008 were primarily due to notebook CPUs, sales of which grew 30 per cent compared with the fourth quarter of 2007.

Prices remained stable, said iSuppli, indicating that the ongoing price war between Intel and AMD has subsided for the moment. AMD released its Puma platform for use in consumer notebooks last month, with Intel set to unveil its rival Centrino 2 platform later this month.

UK to pioneer quantum computing

Neon Kelly — 2008-06-11T17:50:00.000Z

Neon Kelly, Computing, Wednesday 11 June 2008 at 17:50:00

Commitment needed to avoid missed opportunity

The rise of quantum computing could see the UK become a leading provider of secure electronic communication.

Quantum key distribution is the term given to a type of communication that uses photon particles as a protective code, taking the form of a signature. If a transmission is intercepted by a third party, the particles will change alerting the sender that someone has interfered. This technique could vastly improve the security of electronic communication.

Equipment relating to quantum processes is already being sold, and the first usable systems could be made available by later this year, said Charles Ross of London Quantum Networks.

“The problem is getting the technology into the marketplace,” he said. “The UK can become the leader in this market. The opportunity is there, if we get off our backsides and do it.”

London Quantum Networks is working with the National Physical Laboratory to advise the government on its possible use of quantum technology.

Ross was due to address the Cyber Security Knowledge Transfer Network in London today (Thursday).

Intel to sell to mobile market

Tom Young — 2008-06-02T16:03:00.000Z

Tom Young, Computing, Monday 2 June 2008 at 16:03:00

Drive will be based around new chip due in 2009

Intel's chief executive Paul Otellini has outlined plans for the chip maker to move into selling its products to the mobile phone market.

As mobile phones become more like PCs, Intel believes it can bring its expertise to bear in the sector.

"If you accept that the value proposition of the high end of the mobile phone market is full internet access that happens to have voice, my view is that it is easier to add voice to a small computer than vice versa," Otellini told the Financial Times in an interview.

The company hopes the new version of its low-power Atom microprocessor chip, due in late 2009 and aimed at smart phones, will facilitate the move and that PC and phone manufacturers will launch products based around the chips.

No EU decision yet on Intel anti-trust case

Tom Young — 2008-05-30T10:44:00.000Z

Tom Young, Computing, Friday 30 May 2008 at 10:44:00

Reports of hefty fine are quashed by the European Commission

The European Commission is still considering the case for an anti-competition fine against Intel.

Earlier this week a report in the Financial Times Deutschland suggested that the Commission had decided to take action against the chip manufacturer.

But yesterday the Commission emphasised that proceedings were still ongoing and no decision had been made.

"The decision will be announced later this summer," said a spokesman.

Intel stands accused of offering rebates to computer makers that use its processors, as well as paying clients to cancel products used by AMD.

If found guilty, the supplier could face fines of up to 10 per cent of its annual global revenue.

Memory chip sales slowing down

Martin Courtney — 2008-05-27T17:07:00.000Z

Martin Courtney, Computing, Tuesday 27 May 2008 at 17:07:00

Reduced consumer equipment spending has negative affect on DRAM chips

Demand for memory chips that power PCs, mobile phones, consumer electronics and in-car computers has slumped, according to the semiconductor industry’s largest trade association.

World Semiconductor Trade Statistics (WSTS) has revised its revenue forecast downward as a result, primarily due to weak sales of chips to equipment manufacturers in the fourth quarter of 2007, combined with lower unit prices.

WSTS has 70 members representing 80 per cent of the world semiconductor market. The group said combined global sales revenue is expected to grow 4.7 per cent to $268bn (£134bn) in 2008, down 4.4 per cent on its original 9.1 per cent prediction made in November last year.

University stacks up eco-friendly credentials

Neon Kelly — 2008-05-15T17:25:00.000Z

Neon Kelly, Computing, Thursday 15 May 2008 at 17:25:00

A green supercomputer has helped Sunderland to reduce its carbon footprint

Sunderland University has installed what it claims is one of the UK’s first eco-friendly supercomputers, capable of handling powerful processing tasks without the need for extra cooling.

The grid computing system uses 42 Dell PowerEdge 2950 servers running Intel Xeon 5100 chipsets, cutting the energy used by the computer by 50 per cent.

A spaced-out layout for the grid allows air to circulate, eliminating the need for a specialised cooling system.

“There are two key benefits to getting your power consumption down, the first being that it helps to reduce your carbon footprint,” said technical manager Kevin Ginty.

“Also, it costs a lot to run these things, so if you use less power the bill is smaller. We’re talking thousands of pounds a year here, it’s not peanuts.”

The system has been used for a PhD genetic research project and will tackle graphic design work in the future.

AMD playing catch-up on latest processors

Martin Courtney — 2008-05-15T16:13:00.000Z

Martin Courtney, Computing, Thursday 15 May 2008 at 16:13:00

Roadmap set to deliver lower-power quad-core chips for server and workstations in early 2009

AMD updated its processor roadmap last week to demonstrate how it intends to catch up and compete with Intel in the server and workstation markets.

The company has slipped behind Intel in the delivery of quad-core processors based on a 45 nanometer (nm) production process, a technology that provides greater performance at less power than AMD’s current 65nm chips.

AMD’s first 45nm processor, codenamed “Shanghai”, will have 6MB of cache, support faster memory and use up to 20 per cent less power in idle mode than AMD’s quad-core, 65nm Opteron chips.

Shanghai should boost system performance by up to 20 per cent, said AMD, and support more virtual machines on one server, crucial for datacentres looking to boost application speed while also reducing energy costs.

The new chips are expected to start shipping in volume to Dell, HP, IBM and Sun Microsystems in early 2009. Six and 12- core 45nm chips will debut in 2010.

Intel’s rival quad-core, 45nm Xeon chips, are due to ship in new servers and workstations this month.

Randy Allen, corporate vice president and general manager of AMD’s server/workstation division, said the firm was determined to design a processor that would significantly improve the traditional bottlenecks seen with multi-chip products.

“If we had taken two dual cores and put them into one package, we would not have seen anywhere near the level of performance gain,” he said.

AMD and Intel are locked in a legal dispute arising from an anti-trust case from 2005.