Apple Launches A Market Disruptor Yet Again

Katyayan Gupta

Apple launched its next-gen tablet, the new iPad, yesterday at a San Francisco event. Among the standout features includes a Retina display with 2048×1536 resolution, meaning that the new iPad has 1 million more pixels than a 1080p HDTV. Further, the device packs a dual-core CPU, a quad-core A5X graphics processor, LTE support, worldwide 3G support, and 10-hour battery life (nine hours on 4G). I expect that these upgrades will undoubtedly be enough to attract consumers and enterprises alike and further consolidate Apple’s resounding tablet market leadership globally.

So what will be the impact of the new iPad on the rapidly evolving telecom industry? I believe it will disrupt the market due to the following:

  • The As will rule the tablet market. The tablet market is moving towards a likely duopoly between Apple and Amazon due to their aggressive pricing strategies. Through Kindle Fire, Amazon has wiped out the competition in the sub-$199 price range while with the new iPad, Apple will knock out competitors starting from $499 upwards. Moreover, as iPad 2 will coexist alongside the latest incarnation and Apple will slash iPad 2 prices to $399, it reduces the market play of other OEMs such as Samsung even further.
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Sustaining Growth In China: IT Vendors Must Target SMEs

Bryan Wang

On Monday, March 5, China announced that its GDP target for the full year 2012 is 7.5%, lower than the government target of 8% in 2011. This number is also lower than many financial analysts’ estimates and the IMF’s latest estimate of 8.2% in February. At the same time, the government also announced that its consumer price index (CPI) growth estimate is 4% — the same as the 2011 target.

This slight decrease is in line with our recent observations of the overall China economy. Some key reasons for the reduced estimate include:

  • State-owned enterprises (SOEs) have slowed down. In the banking sector, growth from private banks in 2012 is expected to be at least 10% to 20% higher than the “Big Four” banks.
  • Government investment in infrastructure has been revised. For instance, many new high-speed rail projects were put on hold after the Wenzhou train collision in July 2011.
  • Increasing labor costs in China have hurt exports. Foxconn, the largest employer in the manufacturing sector in China, has again increased workers’ base salaries by 16% to 25% beginning in February 2012.
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Intel (Finally) Announces Its Latest Server Processors — Better, Faster, Cooler

Richard Fichera

Today, after two of its largest partners have already announced their systems portfolios that will use it, Intel finally announced one of the worst-kept secrets in the industry: the Xeon E5-2600 family of processors.

OK, now that I’ve got in my jab at the absurdity of the announcement scheduling, let’s look at the thing itself. In a nutshell, these new processors, based on the previous-generation 32 nm production process of the Xeon 5600 series but incorporating the new “Sandy Bridge” architecture, are, in fact, a big deal. They incorporate several architectural innovations and will bring major improvements in power efficiency and performance to servers. Highlights include:

  • Performance improvements on selected benchmarks of up to 80% above the previous Xeon 5600 CPUs, apparently due to both improved CPU architecture and larger memory capacity (up to 24 DIMMs at 32 GB per DIMM equals a whopping 768 GB capacity for a two-socket, eight-core/socket server).
  • Improved I/O architecture, including an on-chip PCIe 3 controller and a special mode that allows I/O controllers to write directly to the CPU cache without a round trip to memory — a feature that only a handful of I/O device developers will use, but one that contributes to improved I/O performance and lowers CPU overhead during PCIe I/O.
  • Significantly improved energy efficiency, with the SPECpower_ssj2008 benchmark showing a 50% improvement in performance per watt over previous models.
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Dell’s Turn For Infrastructure Announcements — Common Theme Emerging For 2012?

Richard Fichera

Last week it was Dell’s turn to tout its new wares, as it pulled back the curtain on its 12th-eneration servers and associated infrastructure. I’m still digging through all the details, but at first glance it looks like Dell has been listening to a lot of the same customer input as HP, and as a result their messages (and very likely the value delivered) are in many ways similar. Among the highlights of Dell’s messaging are:

  • Faster provisioning with next-gen agentless intelligent controllers — Dell’s version is iDRAC7, and in conjunction with its LifeCyle Controller firmware, Dell makes many of the same claims as HP, including faster time to provision and maintain new servers, automatic firmware updates, and many fewer administrative steps, resulting in opex savings.
  • Intelligent storage tiering and aggressive use of flash memory, under the aegis of Dell’s “Fluid Storage” architecture, introduced last year.
  • A high-profile positioning for its Virtual Network architecture, building on its acquisition of Force10 Networks last year. With HP and now Dell aiming for more of the network budget in the data center, it’s not hard to understand why Cisco was so aggressive in pursuing its piece of the server opportunity — any pretense of civil coexistence in the world of enterprise networks is gone, and the only mutual interest holding the vendors together is their customers’ demand that they continue to play well together.
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Emerging Asia Will Be A Hotbed For ICT Sector M&A Throughout 2012

Katyayan Gupta

In their Asia Pacific Tech Market Outlook For 2012 report, Andrew Bartels and Frederic Giron show that government and business IT spending in the emerging markets of Asia (including China, India, and the ASEAN countries) will reach US$180 billion in 2012, growing by roughly 13% over 2011. While emerging Asia’s IT spending is surging this year, economic obligations in the developed markets of North America, Europe, and Japan will ensure continued austerity — and limited IT spending growth. In other words, emerging Asia is clearly a lucrative region of opportunities for US, European, Japanese, and South Korean vendors looking for new sources of growth to offset lower business prospects in their home markets.

Asia is a region of highly disparate countries, with regulatory complexity, cultural differences, and a limited pool of skilled resources. These barriers to entry and expansion will compel vendors to look beyond organic growth, which is simply too time-intensive. Instead, mergers and acquisitions (M&A) of local/regional incumbents with local know-how, skills, and client relationships will increasingly be a strategic imperative for vendors targeting emerging Asia. I’ve highlighted some examples from the Indian market below, but I foresee similar trends in the overall ICT sector throughout emerging Asia:

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AMD Acquires SeaMicro — Big Bet On Architectural Shift For Servers

Richard Fichera

At its recent financial analyst day, AMD indicated that it intended to differentiate itself by creating products that were advantaged in niche markets, with specific mention, among other segments, of servers, and to generally shake up the trench warfare that has had it on the losing side of its lifelong battle with Intel (my interpretation, not AMD management’s words). Today, at least for the server side of the business AMD made a move that can potentially offer it visibility and differentiation by acquiring innovative server startup SeaMicro.

SeaMicro has attracted our attention since its appearance (blog post 1, blog post 2), with its innovative architecture that dramatically reduces power and improves density by sharing components like I/O adapters, disks, and even BIOS over a proprietary fabric. The irony here is that SeaMicro came to market with a tight alignment with Intel, who at one point even introduced a special dual-core packaging of its Atom CPU to allow SeaMicro to improve its density and power efficiency. Most recently SeaMicro and Intel announced a new model that featured Xeon CPUs to address the more mainstream segments that were not for SeaMicro’s original Atom-based offering.

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HP Announces Gen8 Servers – Focus On Opex And Improving SLAs Sets A High Bar For Competitors

Richard Fichera

On Monday, February 13, HP announced its next turn of the great wheel for servers with the announcement of its Gen8 family of servers. Interestingly, since the announcement was ahead of Intel’s official announcement of the supporting E5 server CPUs, HP had absolutely nothing to say about the CPUs or performance of these systems. But even if the CPU information had been available, it would have been a sideshow to the main thrust of the Gen8 launch — improving the overall TCO (particularly Opex) of servers by making them more automated, more manageable, and easier to remediate when there is a problem, along with enhancements to storage, data center infrastructure management (DCIM) capabilities, and a fundamental change in the way that services and support are delivered.

With a little more granularity, the major components of the Gen8 server technology announcement included:

  • Onboard Automation – A suite of capabilities and tools that provide improved agentless local intelligence to allow quicker and lower labor cost provisioning, including faster boot cycles, “one click” firmware updates of single or multiple systems, intelligent and greatly improved boot-time diagnostics, and run-time diagnostics. This is apparently implemented by more powerful onboard management controllers and pre-provisioning a lot of software on built-in flash memory, which is used by the onboard controller. HP claims that the combination of these tools can increase operator productivity by up to 65%. One of the eye-catching features is an iPhone app that will scan a code printed on the server and go back through the Insight Management Environment stack and trigger the appropriate script to provision the server.[i]Possibly a bit of a gimmick, but a cool-looking one.
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Suddenly, Dell Is A Software Company!

Glenn O'Donnell

The Dell brand is one of the most recognizable in technology. It was born a hardware company in 1984 and deservedly rocketed to fame, but it has always been about the hardware. In 2009, its big Perot Systems acquisition marked the first real departure from this hardware heritage. While it made numerous software acquisitions, including some good ones like Scalent, Boomi, and KACE, it remains a marginal player in software. That is about to change.

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Will Emerging Markets Bypass The US On Cloud?

James Staten

South Korea has better broadband than we do. Australia has faster wireless networks. And according to Forrester’s Internet Population Forecast, by 2013 the number of online consumers in emerging markets will dwarf those in the US and Western Europe. In Forrester’s Forrsights Budgets and Priorities survey, these same countries are putting far more priority on cloud computing than we are. Does this mean we could lose our lead in cloud?

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Verne Global And Colt Technology Show A Zero Carbon Data Center – It’s Real, Running, And Impressive In Iceland

Richard Fichera

Data centers, like any other aspect of real estate, follow the age-old adage of “location, location, location,” and if you want to build one that is really efficient in terms of energy consumption as well as possessing all the basics of reliability, you have to be really picky about ambient temperatures, power availability and, if your business is hosting for others rather than just needing one for yourself, potential expansion. If you want to achieve a seeming impossibility – a zero carbon footprint to satisfy increasingly draconian regulatory pressures – you need to be even pickier. In the end, what you need is:

  • Low ambient temperature to reduce your power requirements for cooling.
  • Someplace where you can get cheap “green” energy, and lots of it.
  • A location with adequate network connectivity, both in terms of latency as well as bandwidth, for global business.
  • A cooperative regulatory environment in a politically stable venue.
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