G2 Computer Intelligence Issue No. 1023 | April 7-11, 2014

Client Server News

Competitive Intelligence On Systems, and Computing

Arista To IPO Amid a Ruction between Founders Pivotal Makes its , the 10-year-old network switch maker started by Sun co-founder to compete with Hadoop Free If…

Cisco and Juniper, has filed to IPO and Pivotal, the start-up owned by EMC, VMware and GE, made a raise a nominal $200 million. bid for attention Wednesday by making use of Pivotal HD, its Bechtolsheim and his buddy, Stanford version of Hadoop, free if – of course there’s an if – the professor David Cheriton, the first customer takes out a two- or three-year subscription to all the investors in , both bankrolled rest of its database widgetry. Arista and each own better than 5% of And that widgetry includes its Greenplum Database, the the joint. Indirectly through a trust set up Massively Parallel Processing (MPP) relational data warehouse for his kids Cheriton is Arista’s largest appliance; GemFire, its distributed, in-memory transactional shareholder. CEO Jayshree Ullal, who database; SQLFire, one of those so-called NewSQL relational used to run Cisco’s unit, also in-memory databases; GemFire XD, a Hadoop-based in- owns at least 5% of the action. memory database for Java workloads and HAWQ, the SQL-on- Unlike many IPO candidates lately, Hadoop engine that integrates Greenplum technology into

Arista is actually profitable and has been Pivotal HD. for the last three years. If the customer signs up for this so-called “mega bundle” then However, there’s a sticky fly in the Pivotal says the customer can have its Hadoop distribution “on ointment. Apparently Bechtolsheim and an unlimited basis at no extra cost, including support.” Cheriton, who have started three What’s supposed to make the idea palatable, if not popular, is companies together counting Arista, the fact that Pivotal will be charging a single, flat, per-core have fallen out over who exactly owns annual subscription rate for the stuff, which it’s calling its Big Arista’s EOS network . Data Suite. Cheriton stepped down from the Arista Pivotal calls it a “use it as you need it” pricing model, letting board on March 1 after a company he users “move their investment from one technology to another started on his own called Optumsoft within the suite at any time” without any upgrade fees. claimed in a letter to Arista in November In a canned statement Pivotal CEO Paul Maritz said, “With to own part of EOS and telling Arista that Pivotal Big Data Suite, we are taking the lead for the industry it was in violation of their 2004 non- by removing the technical barriers to data off the plates of our exclusive royalty-free licensing customers. Now the choice isn’t about Hadoop or a SQL agreement. database, in-memory or real-time processing, but efficiency Optumsoft’s widgetry includes a and value.” “software tool used to develop certain Besides the bundled support and maintenance, the user will components of EOS and a runtime only be charged for compute, not for simple storage, which library that is incorporated into EOS.” plays to Pivotal’s notion of a single centralized “Business Data In its filing with the SEC Monday Arista Lake,” where a company pools all of its ever-increasing data, said that “the 2004 agreement places analyzes it at will and builds the appropriate data-driven certain restrictions on our use and applications, presumably using the Pivotal One PaaS. disclosureHAPPY of the Optumsoft HOLIDAYS! software and Pivotal claims this lake thing is a “business priority for CIOs” gives Optumsoft ownership of and something it can “uniquely” deliver “without fear of runaway improvements, modifications and license and support costs.” corrections to, and derivative works of, Unfortunately, Pivotal isn’t telling what its per-core prices are the Optumsoft software that we develop. only that there’s a “cumulative contract minimum” and of course

Client Server News | Issue No. 1023 | April 7-11, 2014

In the November 2013 letter, the term of two or three years. It claims the prices are Optumsoft requested that we cease all “aggressive” and competitive with other start-ups with rival conduct constituting the alleged Hadoop distributions like Cloudera, MapR and Hortonworks confidentiality and use restriction than with the old-line traditional database vendors like Oracle, breaches including the distribution of and IBM. any of their software in source code As Pivotal observes, it does give customers a chance to use form and the unauthorized access or any combination of its wares and see what suits their particular disclosure of their source code to third needs. Of course most of its wares weren’t built for Hadoop parties. Optumsoft also requested that although Pivotal claims they have been retrofitted to deliver a we assign certain components of our “unified set of capabilities.” software to them that they believed to It also seems to be discounting developer resistance to a top- be improvements of their software down approach. tool.” By that as it may, the Big Data Suite is available now. Arista said a breach-of-contract suit could be in the offing. Google Shares Split 2-to-1 If that happens Arista said it would Google’s long-promised, lawsuit-contested 2-for-1 stock split “vigorously defend” itself but there finally came off this week. could be material consequences if it Normal people with Google common stock, which is all Class loses like damages, an injunction or A stock, got a newfangled share of Class C stock for each of Optumsoft licensing or selling its their A shares. widgetry to competitors. So did the founders who got a Class C share for each of their “Whether or not we prevail in a special Class B stock. lawsuit,” Arista said, “we expect that While Class A stock has one vote per share, Class B stock any litigation would be expensive, time- has 10 votes per share and and , who consuming and a distraction to own 15% of the stock, wanted to preserve their 55.7% control, management in operating our which has been eroded over the years by stock compensation business.” and stock deals. Despite the flap Arista means to go So Class C stock has no votes at all. public and told the SEC that in 2013 it In the future Google isn’t expected to issue many more Class realized $42.5 million on sales of A shares and to use Class C to do deals and reward or woo $361.2 million, up 87%, and said it’s talent. been growing at 71% a year since Class A is now trading as GOOGL, a new ticker symbol, and 2010. accounted for 22% of Class C is using the old ticker symbol GOOG. Class B doesn’t its sales. trade. It’s expecting an uptick in sales as Google’s GAAP earnings per share will divided between the cloud absorbs more of its switches. Class A and Class C shares and so will be lower than investors It’s supposed to be taken out by are used to. Morgan Stanley and Citigroup, both of Since Google has been trading for more than $1,000 a share, which are Arista customers. So are a cheaper Google could attract more retail investors. places like SingTel, , Yahoo, It will be the first company to have two species of stock on the Rackspace, Equinix and Microsoft. S&P. It’ll debut on the New York Stock Thursday when the split came into effect GOOG (the old Exchange with the ticker symbol Class A stock) opened at $567 and closed at $569.30, up ANET. $2.30 or 0.41% having been as high as $587.28. See http://www.sec.gov/ GOOGL (the new Class C stock) opened at $568.10 and Archives/edgar/data/1596532/0001193 closed at $571.50, up $3.40 or 0.61%, having vaulted to 12514122171/d639957ds1.htm/ $588.30 during the day. Google is supposed to compensate investors for a period of time if the new C shares trade at a discount to the old stock.

Page 2 | Client Server News | Copyrighted Materials. Please do not reproduce.

Client Server News | Issue No. 1023 | April 7-11, 2014

Google’s chairman also holds B track them. shares, but share sales have cut his votes to 5.5%, They then realized the risk of data breach this according to the Financial Times. posed for the enterprise, particularly regulated industries such as healthcare, education, legal and Sookasa Brings Compliance-as- finance where the loss of a single device connected a-Service to Market to a cloud account can cause a catastrophic data breach and significant legal liability. An enterprise-hungry can rest easier in its Eureka! Sookasa was born. It got $1.95 million in bed at night. seed money from Andreessen Horowitz, First Round A stealth start-up called Sookasa (say su casa, an Capital and SV Angel and now at launch a $5 equal opportunity Romance misspelling) claims to million A round from Accel with continued have vaulted the compliance hurdle stopping the participation from its seed investors. enterprise from adopting Dropbox’ Sookasa figures that legacy encryption solutions and file sharing. focused on networks and end-points require heavy The start-up’s got a reportedly effortless, IT resources, restrict user freedom, weigh on the transparent way of encrypting with bank-grade user experience and so won’t fly as high as its self- AES 256-bit encryption before they go to the service turnkey content-focused encryption and Dropbox cloud and keeping them that way through compliance solution which works on the cloud, on all their subsequent travels including their life on mobile devices, on desktops and when files are notoriously insecure mobile devices without mucking shared externally, with each file getting its own up the carefree user experience. encryption key that’s stored with the file. It calls the widgetry the industry’s first Compliance- The company, which holds a copy of the master as-a-Service, figuring the word “security” has key, has a patent pending cloud-based key become debased. It says it meets HIPAA and management scheme to restrict access to FERPA regulations and it’s even got a report card authorized employees and partners that lets from Praetorian, the security audit firm, saying it’s companies revoke access in real-time so if an passed their extensive compliance tests. employee loses a device or shares data with an It’s a SaaS solution that currently lives on Amazon unauthorized third party, the data is always where its password-protected encryption agents can protected since it remains encrypted. be downloaded to devices that also work off-line. Sookasa hides the file encryption and auditing Sookasa is the brainchild of a father and son team. from end users, who continue to work with their The father is Israel Cidon, none other than the dean natural desktop or mobile interface. of electrical engineering at the Technion, the Israeli Pricing is set at $10 a month per person or $100 a Institute of Technology in Haifa, and the son is Asaf person a year, including a free 30-day trial. Volume Cidon, who wants to an entrepreneur like his pops. discounts are available. Naturally in the fashion of Daddy started Actona Technologies in 2000 and the times there’s a free personal security that sold it to Cisco four years later and interestingly provides encryption without the centralized enough Actona made wide-area file-services administration and compliance intended for software that was supposed to help companies business. move data between branch and main offices, Accel figures Sookasa is the first company to reducing the cost and complexity of remote access consumerize compliance and make it accessible to and backup. professionals at companies of all sizes. So papa is no stranger to the Dropbox problem. The company claims paying beta customers. Asaf Anyway, the two were brainstorming and file- says Dropbox is providing leads. sharing back and forth across the Atlantic when

Asaf, already a graduate of Israeli intelligence and a brief stint at Google’s algorithm factory, was doing Intel Buys 18% of his PhD in cloud storage technologies at Stanford Cloudera for $740 Million under VMware founder Mendel Rosenblum, when Cloudera Monday disclosed in a roundabout way they realized their files were being exploded to that Intel anted up $740 million to buy 18% of it and myriad servers with no way to centrally manage or said that means its F round amounts to a glorious

Page 3 | Client Server News | Copyrighted Materials. Please do not reproduce.

Client Server News | Issue No. 1023 | April 7-11, 2014

$900 million. buddied up with Microsoft and Teradata while MapR The only trouble with that statement is that Intel’s has Amazon, Cisco and HP in its corner, companies getting its piece of Cloudera from the company’s with more clout than Intel in these circumstances other VCs and that means that all of its $740 million although Intel does have a huge ISV following. investment isn’t going to the company. Frankola claimed that “Intel’s sizable investment in According to what Cloudera CFO Jim Frankola told Cloudera, alongside funding from institutional Venture Capital Dispatch, the Wall Street Journal investors, Google Ventures and MSD Capital, are all blog, all of its myriad VCs sold “roughly the same indicative of both the very large market opportunity amount” of their shares to Intel and none of them and the leadership position of Cloudera. These liquidated their whole position. investments give us significant financial resources to An eventual filling should straighten this out but accelerate growth and deliver long-term sustainable meantime Cloudera CEO Tom Reilly told Gigacom value to our customers and partners.” while it had him physically in hand that “60% — Cloudera means to use the money to support its more than a half a billion dollars — will flow to collaboration agreement with Intel announced last Cloudera to fund global expansion and further week; drive enterprise adoption of Hadoop; promote product development.” the enterprise data hub (EDH) market (it’s supposed By eking the news of its F round out over the last to have an EDH); support geographic expansion few weeks the Hadoop house has managed to into Europe, Asia and now China through Intel’s capture the limelight for what appears to be a lofty market presence in that region; expand its services $4.1 billion valuation. and support capabilities for new open source The F money theoretically brings total investment projects; and scale its field and engineering in Cloudera to $1.04 billion, which its backers can organizations. start making back when it goes public, perhaps later The financing is supposed to close in Q2. this year though that kind of timing may now be premature. Greenpeace Excoriates AWS Other investors in the F round, announced earlier for Using Dirty Energy in March, include Michael Dell’s VC operation, MSD Greenpeace released an environmental report Capital, Google Ventures, T. Rowe Price and three called “Clicking Clean” Wednesday that blasts other mystery backers described as “top-tier public Amazon Web Service for having one of the biggest market investors.” Together they kicked in $160 and dirtiest carbon footprints on the ’s million. infrastructure. Intel said last week that it’ll be canning its own Twitter and Oracle are also called out for being distribution of Hadoop once its optimizations are among the “Internet companies who have refused to move into the Cloudera distribution, which it’ll pay even lip service to sustainability, and are simply peddle in hopes of moving more x86 servers. buying dirty energy straight from the grid. These Gartner estimates that the market for data companies, most notably , management infrastructure will be worth $74 billion are choosing how to power their infrastructure this year, growing to $94 billion by 2017. based solely on lowest electricity prices, without IDC says the global market for Big Data consideration to the impact their growing footprints technology and services should grow 27% a year have on human health or the environment.” and hit $32 billion by the end of 2017. Facebook, Google, Apple, Yahoo and have Reilly issued a statement saying, “Clearly, demand made significant strides since Greenpeace took is accelerating and the market is poised for growth – Facebook, Apple and Google to the woodshed three for all of the players in this space, and we believe years ago. Microsoft got middling grades. Cloudera will be the company to lead this global Apple, Box, Facebook, Google, Rackspace and shift in extracting value from data.” have committed to powering their data Cloudera competes against Hortonworks, MapR, centers with 100% renewable energy and Apple’s Pivotal and IBM as well as the freebie Apache already completely green. Hadoop open source project. Hortonworks has

Page 4 | Client Server News | Copyrighted Materials. Please do not reproduce.

Client Server News | Issue No. 1023 | April 7-11, 2014

Source: Greenpeace

Amazon contends Greenpeace’s assumptions and data are wrong and claims two of its data centers use 100% carbon-free power.

Greenpeace said it asked Amazon for the data and like Twitter Amazon refused to turn it over forcing Greenpeace to use publicly available figures. It told Mashable that “having one hydro-powered data center out of an otherwise vastly dirty energy footprint, based mostly in Virginia on a coal, gas and nuclear powered grid, is a far cry from the ambitious 100% renewable energy goal that peers like Apple, Facebook and Google are pursuing.” The study involved 300 tech companies. The electricity they use is one of the fastest-growing sources of greenhouse gas emissions globally with more and will only increase as more people come online. See http://www.greenpeace.org/usa/en/media-center/reports/clickingclean/.

Page 5 | Client Server News | Copyrighted Materials. Please do not reproduce.

Client Server News | Issue No. 1023 | April 7-11, 2014

Microsoft Matches Amazon’s Prices Microsoft Monday cut prices on Azure, keeping its commitment to match Amazon’s prices on commodity services. Azure compute will be coming down by up to 35% and storage by up to 65% on May 1, a month after the Google and Amazon price cuts of last week. Some of its prices undercut Amazon 1%-6%. Azure general manager Steve Martin said in a blog posting making the announcement that “We recognize that economics are a primary driver for some customers adopting cloud, and stand by our commitment to match prices and be best-in-class on price/performance.” Microsoft Thursday also introduced a new tier of General Purpose Instances called “Basic” that it slipped in under what is now its Standard tier of instances. Basic won’t include the load balancing and auto-scaling that come with the Standard extra small to extra large instances and will cost 27% less than those Standard instances. They are supposed to be good for “production applications that do not require the Azure load-balancer (‘bring-your-own load balancer’ or single instance), development workloads, test servers and batch processing applications,” Martin said. They are supposed to have performance characteristics similar to equivalent instances on Amazon. Azure’s Memory-Intensive Instance (A5-A7) prices will be cut by up to 35% for instances and up to 27% for Windows instances next month. The company expects to have a Basic Tier for Memory Intensive Instances down the road. Azure is cutting its Block Blob storage pricing by up to 65% for LRS and up to 44% for GRS. It will also have a new redundancy level for Block Blob storage called Zone Redundant Storage (ZRS) in a few months that’s 37.5% cheaper than GRS. Martin said “customers use our Geo Redundant Storage (GRS) to keep their data durable in two regions hundreds of miles apart from each other, where we store an equivalent of six copies of the data (three in each region).” With the advent of ZRS, Azure will offer a new redundancy option that keeps three copies of the data across multiple facilities that are in the same region or across two regions. Azure is introducing region-specific pricing, saying it recognizes that “some workloads require specific placement while others are not as dependent on location.” Folks with flexible instances can save a buck. Microsoft provided comparing its Basic A1 cost relative to Standard A1 compared to comparable AWS instances. The configuration parameters of Azure instances and AWS instances aren’t always tit for tat. A2, A3, A4 prices are 2x, 4x, 8x of A1, respectively.

Page 6 | Client Server News | Copyrighted Materials. Please do not reproduce.

Client Server News | Issue No. 1023 | April 7-11, 2014

The table below shows the prices of Standard A5 against the closest AWS instances. A6 and A7 are 2x and 4x of A5, respectively.

Azure’s coming storage prices are compared to Amazon’s in this Microsoft table:

Page 7 | Client Server News | Copyrighted Materials. Please do not reproduce.

Client Server News | Issue No. 1023 | April 7-11, 2014

Intolerance Trumps Mendix Offers Users an Intolerance at Mozilla ‘Ecosystem in the Cloud’ Brendan Eich Thursday stepped down as CEO of For the last few years a Boston-based company Mozilla less than two weeks after he was moved into called Medix has been quietly peddling a RAD the slot on March 24 because of the uproar and application Platform-as-a-Service (aPaaS) to mid- threatened boycott created by the fact that he gave size and large enterprises like ABN Amro, Sprint, $1,000 to the campaign that supported Proposition Dun & Bradstreet, Genzyme, KPN, Liberty Mutual, 8, a 2008 California ballot measure that banned Roche and TNT, mostly for custom app same-sex marriage in the state. development. No replacement has been named. It’s seen enough success that this week it hosted a In announcing Eich’s retreat in a blog posting reported 1,500 CIOs and IT decision makers at Mozella’s executive chairwoman and co-founder Mendix World in Rotterdam, where its EMEA Mitchell Baker said “What’s next for Mozilla’s operation lives. leadership is still being discussed. We want to be There it introduced what it calls its AppCloud, a open about where we are in deciding the future of service layer equipped with visual modeling tools the organization and will have more information next that sits on top of its drag-and-drop App Platform week.” and is supposed to bring a company’s custom apps See, Eich’s appointment also immediately roused and data together with its end users, business three Mozilla board members to quit reportedly analysts, developers and ISV partners in a single because they wanted an outsider who would push cloud environment. the relatively new Firefox OS mobile operating Sort of like an ecosystem-in-the-cloud. system. Mendix co-founder and CEO Derek Roos While the Mozilla Firefox browser’s worldwide compared it to putting a SaaS on top of a PaaS. market penetration is second only to Microsoft’s IE, If the widgetry is received the way Mendix expects, its OS hasn’t made the slightest dent in the mobile it believes the new service will fundamentally market. change the way modern business apps are built, In her blog post Ms. Baker said, “Mozilla prides shared and consumed. itself on being held to a different standard and, this Certainly it should lessen a company’s historic past week, we didn’t live up to it. We know why dependence on traditional IT resources because, as people are hurt and angry, and they are right: it’s Mendix sees it, the AppCloud will “enable because we haven’t stayed true to ourselves. We collaboration and unlock the creative potential of an didn’t act like you’d expect Mozilla to act. We didn’t entire workforce.” move fast enough to engage with people once the If that happen, businesses should get more agile controversy started. We’re sorry. We must do by acting rapidly on their ideas and IT could go better…. Mozilla believes both in equality and about its business of managing an ever-growing freedom of speech. Equality is necessary for portfolio of apps, developers and users and meaningful speech. And you need free speech to ensuring their security and governance. fight for equality. Figuring out how to stand for both The Boston Global, which has been using the stuff, at the same time can be hard….We will emerge says it’s changed the way it delivers business apps from this with a renewed understanding and humility and “boosted our ability to innovate and compete.” — our large, global, and diverse community is what AppCloud, which delivers a consistent user makes Mozilla special, and what will help us fulfill experience across all applications and devices, our mission. We are stronger with you involved. gives users a launch pad where they can access all Thank you for sticking with us.” of their business applications and standard app The whole thing’s at services. It includes free sandbox cloud https://blog.mozilla.org/blog/2014/04/03/brendan- environments containing everything users need to eich-steps-down-as-mozilla-ceo/. deploy and run the apps they are building, and instantly share them with other users. It’s designed to scale for enterprise needs and

Page 8 | Client Server News | Copyrighted Materials. Please do not reproduce.

Client Server News | Issue No. 1023 | April 7-11, 2014 provides IT with controls for user management, managed security service provider. security and app governance. Happily, there’s a It fits in with MapR’s distributed enterprise data scalable single sign-on service as well as an hub architecture, where developers can consolidate application marketplace that reportedly already many terabytes of unstructured information from includes hundreds of community-built apps, across their organization. templates and app services. MapR chief marketing officer Jack Norris, says, Since AppCloud supports RESTful APIs programs “Elasticsearch and MapR together give customers developed on it can be integrated with other apps. production-ready technologies that enable real-time While it was at it Mendix unveiled a free access for retrieving and analyzing Big Data stored Community Edition of its aPaaS seeking to expand in Hadoop.” the breath of its following. Elasticsearch has reportedly been seeing nearly It will let anybody build prototypes and small 500,000 downloads a month, for a cumulative six working apps. million cumulative downloads. With $34 million in It’s supposed to include the rapid development funding the two-year-old Elasticsearch company is capabilities of the Mendix App Platform combined backed by Benchmark Capital and Index Ventures with a complete set of deployment resources for and has offices in Amsterdam and Los Altos in the small teams of up to 10 users. Valley. Mendix hopes they’ll be beguiled enough by the MapR claims its Hadoop distribution has a lower widgetry to upgrade to its commercial products to cost of ownership than other distributions and the add users and enterprise-grade features including widest number of use cases. It also claims 500 private cloud and on-premise deployment options, customers. app monitoring, backup and resource management as well as enterprise management and support. HP Settles Apotheker-Induced Both AppCloud and the Community Edition will be available April 10. Suit for $57 Million Mendix is backed by a $25 million B round led by HP continues to pay for hiring Leo Apotheker as Battery Ventures that it got in January. Prime CEO. Ventures, which led its $13 A round, also kicked in. It has just settled a stockholder class-action suit Mendex claims to deliver business applications dating to shortly after he shocked the market and often 10 times faster than traditional development everybody else with his unforgettable 2011 plan to methods, driving ROI in days or weeks. It says it’s kill webOS in its cradle, buy Autonomy for an been seeing better than 100% annual growth for the obscene amount of money and maybe off the last five or six years. company’s PC unit. The mediated settlement, covering the webOS part MapR & Elasticsearch Integrate of the announcement that halted sales of the ballyhooed TouchPad after seven weeks on the MapR, the Hadoop distributor, and Elasticsearch, market, will cost HP $57 million. the open source real-time search and analytics The lead plaintiffs include four US, German and house, have integrated their widgetry, giving Canadian pension funds which accused Apotheker Hadoop users a full-blown search engine that’s of misrepresenting HP’s webOS intentions. supposed to scale no matter how much data they’re The money will go to buyers of HP stock between processing. November 22, 2010 and August 18, 2011, the date Shay Banon, creator of Elasticsearch and the of Apotheker’s announcement. company’s founder and CTO, says users will be HP sold off the remains of its $1.2 billion Palm able to ask their data better questions and get acquisition in 2010 from which webOS flowed to clearer answers significantly faster. Qualcomm earlier this year. The Elasticsearch-Hadoop project was announced six months ago and the combined solution is reportedly already being used by several Fortune Microsoft Frees Up Windows 100 financial firms and by Solutionary, the pure-play Taking a leaf from Google’s Android book, and at the sacrifice of $5-$15 per device, which at its

Page 9 | Client Server News | Copyrighted Materials. Please do not reproduce.

Client Server News | Issue No. 1023 | April 7-11, 2014 volumes isn’t much, Microsoft will be making users of the most popular operating system on the Windows licenses free for consumer phones and cloud. tablets with screens under nine inches. Google joined Red Hat’s five-year-old Certified A license fee will still maintain for business devices Cloud Provider program in November, a month although Microsoft is anticipating a future version of before Compute Engine GA’d, and is now only the Windows for the Internet of Things and it’ll be free. second Cloud Access-enabled partner. Microsoft could make money off of devices with its RHEL users have been able to bring their Red Hat Skype, Office and Bing cloud services although it licenses to Amazon Web Services since 2011. will be offering a year’s free subscription to its cloud- based Office 365 service on new devices running AMD’s Consolidating its the free Windows. That’s supposed to indicate it’s after Office market 18 Data Centers Down to Two share. Right this moment might not be the best time to CEO Satya Nadella said, “We are not coming at mention that you’re consolidating your 18 worldwide this as some incumbent trying to do the next version data centers down to two, one in Atlanta and one in of Windows, we are going to come at this by Malaysia because the government cut you a deal innovating in every dimension.” but that’s what the financially dicey AMD is doing in The broadly anticipated announcement was made the name of agility and is pretty well through the at the company’s Build developers’ conference this process. week where it also unveiled a Siri-like personal Last year the consolidation, which involves moving assistant called Cortana for the Windows to a much more virtualized environment, saved AMD Phone 8.1 update. $8.5 million. Cortana itself, some of whose answers were The last data center to close will probably be the reportedly written by Hollywood screenwriters, is still facility in Canada, which is due to shut early next in beta. It will work with third-party apps like year. Facebook and scan e- to let you know your By then AMD will be running strictly on its own flight is delayed. state-of-the-art Opteron and SeaMicro servers – Microsoft also said it would start supporting positively no Intel widgetry – and a lot of it on HP Windows Universal Apps that work across Windows blades, helpful in making the place a showcase for Phones, PCs, tablets and now the Xbox though AMD technology. Visual Studio 2013 Update 2, currently a release CIO Jake Dominguez, who’s only had the job since candidate. That means an app bought for a November of 2012, is also cutting deeply into the Windows phone will work on a Windows desktop number enterprise that will run on the infrastructure. and vice versa, a move that may pressure Apple He expects to half the number that were in use at and Google to do the same. the beginning of 2012. He figures he’ll wind up with 150 but it will take some investment building and porting certain capabilities but the exercise will help Red Hat User Can Bring Their save the company 30% in IT costs and rid it of Licenses to Google’s Cloud functional duplication and the higher maintenance In a bit of calculated bonhomie, Red Hat said costs of the equipment it replaced with sleeker, Monday that Red Hat Enterprise Linux subscribers more compressed racks. will be able to move their eligible on-premise Dominguez says the exercise has also been a subscriptions to as part of boon to company morale, because 95% of internal Red Hat’s so-called Cloud Access program, a projects are now getting done on time. It used to be “bring-your-own-subscription” model. just 50% when the company had 200 projects on its Red Hat will keep the support relationship with the plate. Part of the trick of course is picking the customer and collect for it while it gets to laud the projects that can get done on time. agility, portability and business realism of its hybrid AMD started out with eight data centers in Asia. cloud vision. Several of them have already been closed in favor Google in turn gets to reach out to more enterprise of the one in Malaysia, which has been there for the last four years. The company has an 11-year lease

Page 10 | Client Server News | Copyrighted Materials. Please do not reproduce.

Client Server News | Issue No. 1023 | April 7-11, 2014 on the Atlanta facility, while operations in close to $930 million in damages, a decision Sunnyvale, Houston and Boston are terminated. Samsung is appealing. Dominguez was happily surprised at the prices its A jury was selected Monday and opening decommissioned physical gear fetched. It arguments followed on Tuesday. represented 76% of its servers. It only took a few hours for one of the 10 jurors selected to get sick and another to complain of Microsoft’s New CEO Makes financial hardship for the jury to be reduced to four a Couple More Appointments men and four women including a retired IBM software executive, a cop, a retired teacher and an Ahead of the company’s Build conference this week, executive assistant. Microsoft CEO Satya Nadella Monday made Scott This time through Samsung is accused of Guthrie, who replaced him as Cloud and Enterprise infringing five Apple software patents including ones chief, an EVP confirming him in that role and said covering a universal search feature used by Siri, that Phil Spencer, head of Microsoft Studios, will slide-to-unlock, autocomplete, a quick link to data take over an Xbox group that includes the Live, detection and a background syncing technology. Xbox Music and Xbox Video teams along with Samsung claims it got four of the features in Microsoft Studios. questions from Google’s free Android operating The move unites all Xbox software, gaming and system and that Google was working on the content under a single person and separates it from widgetry before Apple filed its patents. the company’s new Devices unit under former Nokia Samsung’s lawyers called the case an “attack on CEO and soon-to-be Microsoft EVP Stephen Elop. Android” and Apple’s patent claims “gross Nadella said he expects Spencer, who will report exaggeration.” Apple blames Samsung for going to Terry Myerson, head of the company’s Operating with Android and profiting from it. Systems Group, to bring the “magic of Xbox” to The judge already decided that Samsung infringed tablets, PCs and phones. another one so the jury will only have to assess Separately Antoine Leblond, the 25-year Office damages on that one but this time Google could be and Windows passed over in Steve Ballmer’s forced to make changes in Android. reorganization last year, is leaving the company to Google witnesses are expected to be called see what life is like on the outside. He was VP for maybe former Android chief Andy Rubin. Windows Web Services and previously led the Samsung’s countersuit claims nine Apple development of Office 2010. products, including the iPhone 5 and versions of the

iPad and iPod, infringe two of its patents acquired Apple’s Second California Trial after Apple sued. It wants $6.9 million in damages. against Samsung Off & Running Similar Samsung claims were completely thrown The curtain rose Monday on the second California out in the first trial. trial of Apple’s “we was robbed” allegations against copycat Samsung. Apple, IBM & Microsoft Part of It’s expected to run three days a week for a month Group Formed To Defend Patents and end with Apple demanding a hefty $40 in Apple, DuPont, Ford, GE, IBM, Microsoft and Pfizer royalties for each infringing Samsung device or $2 have come together as Partnership for American billion – the sum it contends it would have charged Innovation to dissipate criticism of the patent system Samsung to license its patents – not to mention by the media, Congress and the courts. what it really wants – a permanent injunction against They expect other companies to join them. 10 newer Samsung devices like the Galaxy S3 and The group’s senior advisor is Dave Kappos, the the Galaxy Tab 2 10.1. former director of the US Patent and Trademark Such an injunction could theoretically indict state- Office and now a partner with the law firm of of-the-art Samsung product that aren’t “colorably Cravath, Swaine & Moore. different” from their predecessors. According to Kappos, “We must move beyond The first trial in 2012 under the same federal rhetoric that the system is broken and trolls are judge, Lucy Koh, resulted in Apple being awarded

Page 11 | Client Server News | Copyrighted Materials. Please do not reproduce.

Client Server News | Issue No. 1023 | April 7-11, 2014

bringing businesses to a complete halt to a with the trend toward “mid-tier premium phones” and discussion of calibrated improvements for what is emerging markets going for low-cost Android actually the best patent system our planet has.” phones. The group isn’t taking any sides though they apparently think software is patentable. Trial over ‘No Poaching’ Pact It just thinks the American economy is best served Set for May by a strong patent system; that IP needs to be Apple, Google, Adobe and Intel haven’t been able to respected; and that the PTO must be sufficiently wiggle out from under class-action antitrust charges funded “to effectively process patent applications that they colluded together not to raid each other’s and issue only high-quality patents.” staff as a cap on wages.

Federal court judge Lucy Koh denied their bid for a Like Spring, IT Spending is Returning bench ruling in their favor claiming the agreements It’s stopped snowing on the East Coast, spring may weren’t part of an overarching conspiracy. be on the way, and Gartner said again that IT Koh found “That the agreements were entered into spending will hit a rosy across-the-board $3.77 and enforced by a small group of intertwining high- trillion this year, up 3.2% year-over-year. level executives bolsters the inference that the Thanks to Big Data, the cloud and mobile access, agreements were not independent.” enterprise software is supposed to see $320 billion, She also found that the companies shared up nearly 7% and concentrated around databases compensation plans. and database integration tools. The trial’s been set to start May 27 and the IT services could be good for $964 billion, up companies could wind up paying damages to the almost 5%, and focused on getting projects done 64,000 people who worked for them between 2005 (what a concept!). and 2009. Data center spending is supposed to be up 2.3% They were undone by e-mails sent by their to $143 billion. leaders. According to Gartner, “Globally businesses are Intuit, Pixar and Lucasfilms were previously named shaking off their malaise and returning to spending in the suit but settled for a combined $20 million. on IT to support the growth of their business.” Facebook refused to sign on to the arrangement. PCs, tablets and mobile phone should rise 4.4%

Client Server News is published weekly by 2 Computer Intelligence, Inc 18 Danis Avennue, Glen Cove, New York 11542 516-759-7025 clientservernews.com Editor: Maureen O’Gara ([email protected])

It is illegal to reproduce, copy, photocopy, forward, e-mail, publish, broadcast, post on an Internet/intranet site, rewrite, store in a retrieval system or otherwise distribute this publication or any portion of this publication or any article in whole or in part by any means, mechanical, photocopying, recording or otherwise without the prior written permission of G2 Computer Intelligence.

Subscription price: $595 U.S. (EUR645) per year. Available by e-mail to groups, departments and companies at discount prices. Subscription Sales: (516) 759-7025

ISSN 1351-5500; © Copyright 2014 G2 Computer Intelligence, Inc.

Page 12 | Client Server News | Copyrighted Materials. Please do not reproduce.

Client Server News | Issue No. 1023 | April 7-11, 2014

BackPage

Oracle Beats Out IBM barring Ryan Seacrest’s Typo cloud for the US. He told the There’ll be no living with Larry Products from selling its snap-on paper, “If you look at the amount Ellison now. Gartner Monday physical keyboard for the iPhone of computing done in each major said that last year Oracle had 5 and 5S. The judge said country in the world, it probably finally edged IBM out as the BlackBerry had showed that its warrants [having] a region in each second-biggest software keyboard drives its sales and that major country.” company in the world after Typo is targeting the market Microsoft. Global software segment that prefers a physical Red Hat Reinforces its revenue in 2013 amounted to keyboard. Typo said it would Sales Management $407.3 billion, up around 5%, appeal. BlackBerry has to post a Red Hat Wednesday named D. with Microsoft getting $65.7 bond to pay damages in case it Robert Martin VP of North billion, Oracle $29.6 billion and loses at trial. The injunction American partner sales, John IBM $29.1 billion. The numbers comes into effect once the bond Tzioufas VP of North American give Oracle 7.3% of the global is posted. emerging product sales, and Matt market. Androski VP of west region sales. Gartner Finds Hadoop Martin, a Cisco graduate, was Canonical Kills its Market Wide Open recently VP of Global indirect Cloud Storage Gartner told CIO Journal there channels at VCE, the Vblock Canonical is shutting down its are currently only 1,000 Hadoop peddler. Tzioufas, whose charter “unsustainable” Ubuntu One file implementations in use by includes cloud, storage and service and its Ubuntu One business. In a recent survey of virtualization, was a sales VP at store. Too much competition for more than 700 companies it HP. Androski was vice president free storage and since other found only 8% had used Hadoop of sales and general manager for services now regularly offer in production but believes this North America at Mindjet. 25GB-50GB of free storage the could explode soon. company wasn’t willing to make Juniper To Can 6% the investment to keep abreast. AWS May Set Up of its People It said “the current services will in Germany Under pressure from activist be unavailable from 1 June Amazon is considering setting up investors Elliott Management and 2014; user content will remain one of its cloud data centers in Jana Partners, Juniper Networks available for download until 31 Germany in response to privacy- is cutting its global workforce by July, at which time it will be skittish, data sovereignty- 6% or around 570 people, a cost- deleted.” Unused subscription constricted, NSA-irritated users cutting move that will impact fees will be returned calculated who are reportedly asking for a middle management. It will take a from the April 2 announcement. facility “on their own soil,” roughly $35 million charge to It’ll release the underlying according to what AWS chief cover severance. It will also stop Ubuntu One code as open Andy Jassy told the Wall Street developing its application delivery source so other people can Journal. Amazon reportedly has controller technology that create an open source file “significant business in removes excess load from syncing platform. Germany.” AWS currently has servers incurring asset data centers in 10 regions. The impairment charges of roughly BlackBerry Gets closest to Germany is in Dublin. It $85 million and consolidate its its Injunction also has facilities on the East and facilities for another $70 million After claiming patent West Coasts of America, Brazil, charge. infringement, BlackBerry has Singapore, Tokyo, Sydney and won a preliminary injunction China as well as a government

Page 13 | Client Server News | Copyrighted Materials. Please do not reproduce.