30% Of Auto-Industy Supply Chain Will Die, Expert Says
With bankrupt Chrysler about to resume production and as both it and General Motors struggle with huge losses and drastic new ownership structures, at least 30% and perhaps even 40% of the suppliers that feed the U.S. automobile industry will not be able to survive, says a restructuring expert.
Indian IT Firms Cutting Billing Rates At Unprecedented Levels
Indian IT services firms have been cutting their rates by 35% or even 40% as global clients continue to look for ways to reduce costs in the global economic downturn. The depth of this latest round of rate cuts is "unprecedented," according to an industry expert based in India.
SAP Looking At 35% Margins And Doubled Revenue By 2014
A leaked SAP strategy document says the company expects to reach an operating margin of 35% by 2014 and also expects current revenue to double during that five-year period. Right now, archrival Oracle has an operating margin of 51%, so it will be interesting to see how each side spins its profit story to its customers.
Top 10 Companies For US Patents In 2008: IBM Again #1
IBM was awarded 4,186 patents last year to lead the Top 10 list, marking the 16th straight year IBM has earned more US patents than any other company in the world. IBM's achievement - that's more than 11 patent granted every single day for the entire year - also marks the first time any organization has been awarded more than 4,000 US patents in a single year.
CIOs Don't Listen To Vendors Anymore, Says Salesforce CEO
During the global economic downturn, an IT industry that delivers too much complexity and not enough flexibility has lost a lot of credibility, says Salesforce.com CEO Marc Benioff, and a major repercussion has been the rise of the reference-account CIO as sales driver. Is your commission plan all set up?
Oracle's Larry Ellison Touts Company's New Hardware Chops
In Tuesday's eagerly anticipated earnings call, Oracle CEO Larry Ellison might have been expected to talk about the company's $23.5 billion software business or its Q4 operating margins of more than 50%. But in a sign of the changing times, he talked not about software but instead about a hardware-based Oracle product that "is shaping up to be our most exciting and successful new-product introduction in Oracle's 30-year history."
iPhone Hammers Blackberry In Crossover Purchase Preference
Among smartphone users who don't currently have Blackberries, only 14% say they plan to buy a Blackberry as their next smartphone. But among smartphone users who don't currently have an iPhone, 38% say the iconic Apple smartphone is the one they're going to buy. Eh, cut-and-paste, schmut-and-paste!
Enterprise 2.0: Confronting Social Media's Dirty Little Secret
I'm encouraged that the dirty little secret of Web 2.0 and social media technologies is finally being openly addressed by early adopters and vendors alike. At the Enterprise 2.0 Conference in Boston, there's been frank discussion this week of the question average users have been whispering (so that their bosses don't hear them): Namely, what can this stuff do for me that's actually useful?
Oracle Takes Share From SAP, But Is It Signing New Licenses?
Oracle's acquisition binge has allowed it to take customers and market share from SAP, analysts say, but their bigger focus is on whether Oracle can stem its recent declines in new-license revenue. We'll find out for sure later today when Oracle releases its quarterly numbers, but here's what some analysts are projecting.
IBM's Patent Lawyer: From Reform Advocate To Mr. Fix-It
When I was researching an article on the U.S. Supreme Court re-shaping patent law two years ago, everyone kept telling me I needed to talk with David Kappos, IBM's top patent lawyer. Guess President Obama got the same advice.
Enterprise 2.0 Panelists: Get On With The Cloud Already
In a "customer visit" session kicking off the Enterprise 2.0 Conference in Boston Monday evening, executives from IBM, Google, and EMC laid out their companies' cloud computing value propositions and then fielded questions from a handful of potential buyers. Much has changed -- and still much hasn't -- from the first "Evening In The Cloud" session at Enterprise 2.0 a year ago.
Citrix CEO Templeton Forecasts Consumerization Of IT
In yet another stark example of the type of fresh thinking CIOs need to embrace to overcome tomorrow's business-technology challenges, Citrix CEO Mark Templeton says IT organizations need to create self-service models to lower the cost of infrastructure and give employees more flexibility and power. He even says employees should be given the freedom to provision their own apps and services.
The Apple iPhone 3G S And The CIO
Not too long ago, a mythical CIO finally authorized the Blackberry for corporate use, and overnight was transformed from know-nothing whipping-boy to rock-star hero. But now comes the iPhone 3G S and the troops are threatening an all-out uprising unless they all get one. A real-life IT exec from the U.K. tells this tale of woe in "The CIO and the iPhone."
Hewlett-Packard Acquires HR Business-Process Outsourcer
Hewlett-Packard has acquired full interest in an HR business-process outsourcing firm formed as a joint venture between EDS and Towers Perrin in 2005 and called Excellerate HRO. Now that HP's wholly owned services unit, EDS, has full control over the venture, HP is likely to become more aggressive in courting outsourcing deals in the HR sector.
Is Oracle Looking To Acquire GoldenGate For Data Migration?
Reports are circulating that Oracle will trump this week's acquisition of Conformia with the purchase of GoldenGate Software, whose data-migration and real-time integration tools are already widely used to link Oracle with Siebel and other environments.
CIOs Belong On The Board -- Or Else They're Just IT Managers
"Having faced the humiliation of having their IT budgets unilaterally cut, [some CIOs] are now in a tail spin that will ultimately have serious business consequences." Sound familiar? IT consultant Ade McCormack says that unless such CIOs are willing to accept the job of IT manager, they need to heed his "call to arms for a 21st-century CIO."
Socialism Hits Home As BusinessWeek Asks, Should CIO Pay Be Limited?
At the end of a recent article detailing the 2008 compensation packages of the five highest-paid CIOs - with #1 on the list having earned $24.65 million - BusinessWeek asked the rather bizarre question, "Do you think limits should be set for CIO pay?" After reading the article a second time, I think BusinessWeek wants the answer to be yes.
Oracle Wins Strategic Deals With HBO, Abercrombie & Fitch
Oracle has landed two significant new deals: with HBO to help it shift more IT spending away from internal operations and more toward content creation and customer engagement, and with Abercrombie & Fitch to create a global single instance for store merchandising and operations as the retailer undertakes a global expansion.
Hewlett-Packard's Randy Mott Tops List Of 5 Best-Paid CIOs
HP CIO Randy Mott, who last year completed a sweeping transformation of HP's IT operations that flipped the ratio of IT spending on maintenance/innovation from 80/20 to 30/70, tops a list of the five best-paid CIOs at public companies in the U.S. Other public companies whose CIOs made the list: Best Buy, State Street Corp., American Express, and JC Penney.
Is That A Cloud On Healthcare's Horizon?
Cloud models are starting to provide an attractive option for large and influential regional medical centers to get lots of small, local, laggard doctor offices trading in their paper patient files for electronic medical records. Are there clouds in your forecast?
IBM CEO's Description Of Big Blue Used Against It In Court
IBM CEO Sam Palmisano recently told institutional investors, in a very pointed fashion, that IBM is "not like the other companies in the IT industry" because it's transformed itself. And so when IBM sued one of its VPs to prevent him from joining Dell, the VP defended his legal right to make the move by using Palmisano's own words as proof that Dell should not be regarded as a competitive threat to IBM.
10 Questions For Federal CTO Aneesh Chopra
Chopra talks about the role of technology in government policy, and advancing Obama's healthcare IT, smart grid, education technology, and economic development agendas.
Apple And The Magical Retail Experience In Its Global Stores
A professional investor who's used PCs for 20 years relates the superb retail experience he had at the Apple Store in Tokyo, and emphasizes the power of atmosphere and interpersonal interactions in driving brand equity, revenue and customer engagement. After buying, he wondered, "What excuse could I find to visit my new friends in Ginza, and buy something else from them?"
SAP Turns To SaaS 'To Avoid Extinction,' Says BusinessWeek
A Google News search on "SAP" turned up this headline attributed to BusinessWeek: "SAP hits on-demand SaaS button to avoid extinction." But that silly headline and equally silly article weren't written by BusinessWeek - they appeared on a new BusinessWeek site where readers post stories from other sites. With outcomes like this, is SAP the one that should be worried about extinction?
IRS Says It Wants To Help You SAVE Money On Cell Phones!
An anonymous IRS official has leaked some comments about a proposed tax-code change that could make it less expensive for businesses to comply with tax laws governing deductions for cell phones. Forgive me if I'm a tad suspicious, but when was the last time that the IRS did anything to save any money for anyone? And why did the comments have to be made anonymously?
Cisco SAN Share Slumps As HP And IBM Switch To Brocade
Cisco's recent entry into the server business has caused two of its former partners, HP and IBM, to retaliate by buying more high-end SAN switches from Brocade rather than from traditional supplier Cisco. The result: "a landslide shift in market share in just one quarter."
Microsoft Tops IBM And Oracle On R&D Spending -- Combined
Microsoft CEO Steve Ballmer says his company will spend $9.5 billion on R&D this year. That's almost 50% more than IBM's $6.5 billion, and it's more than the combined R&D spending of IBM and either Oracle ($2.7 billion) or Google ($2.8 billion). And almost nine times as much as Apple's $1.1 billion. Is Microsoft deriving equivalent multiples in business value?
SuccessFactors' CEO On SAP's SaaS Strategy
After I wrote about SAP's new SaaS strategy Wednesday, several SAP competitors sent emails slamming the strategy. Not an unusual response from competitors, right? But I did accept the offer to talk to Lars Dalgaard, CEO of SuccessFactors, which just landed a massive deal for 420,000 seats of its talent-management SaaS with
UBS CTO Out After 10 Weeks As IT Becomes 'Pooled Service'
UBS CTO and head of IT Peter Sany is leaving the company after about 10 weeks on the job and all you CIOs out there please take note: UBS's CEO said ongoing cost cuts include "pooling services such as information technology." Is that how your company views you and your IT operation: just another commodity service, like HR and facilities, waiting to be pooled?
Cisco Feeling Understimulated By 'Buy American' Policy
Seeking to gum up America's expansion into the 21st century by advocating Industrial Age processes, a labor union is demanding that Cisco and Alcatel-Lucent deconstruct their global supply chains to prove by hand that only U.S.-made components are going into a $7.2 billion government-funded project to expand broadband access. Cisco is finding these nativist policies to be anything but stimulating.
Companies Looking To Hire CIO 2.0
After months of gloom and doom, are companies again hiring new CIOs? Some executive recruiters say yes. And apparently, some of those employers want an upgrade.
Global Investments Spur U.S. Jobs And Wages, Economists Say
When American companies expand their operations outside the U.S., those global investments lead directly to the hiring of more workers in the U.S. at higher wages because the companies become more successful and competitive, according to a new study from Harvard and Berkeley. To you nativists who'll howl like roasted cats at such objective research, there's an old saying: you can look it up.
SAP Unveils SaaS Strategy
SAP's new head of on-demand software applications for large companies provides the first details of SAP's strategy for delivering subscription-based apps to Business Suite customers.
Many CIOs Cutting IT Budgets
Renegotiating vendor contracts and reducing staff were the major causes of cost cutting in the first quarter, a Gartner researcher says.