Information Technology

Oracle shows off art of war by hiring Mark Hurd

7 Sep 2010

Sun Tzu admirer Larry Ellison roundly mocked the HewlettPackard board when it forced out its CEO last month. By hiring Hurd, the Oracle boss backed up his words. He not only gains a wellregarded operations guru, he follows the Chinese general's dictum Know your enemy.

When should investors sell their Apple stock?

6 Sep 2010

Not yet. The group's push overseas and into the business market not to mention new gadgets means growth should continue for some time. At some point, though, it will inevitably slow. Here are a few possible warnings signs for when that day may arrive.

Are Dell’s shareholders on Xanax?

2 Sep 2010

The company has finally bowed out of its mad bidding war for 3PAR. Yet its investors displayed neither much concern about overpayment nor relief about the deal being dropped. After a decade of scandals, missed opportunities and dismal performance, they may have stopped caring.

At Apple the gadget, not content, is still king

1 Sep 2010

Nearly every day brings a new contestant in the fight for the American couch potato. Netflix, Amazon, Hulu and YouTube all want to serve up content. While Apple also rents out video, its new TV device allows users to stream rival services. It's still all about the hardware.

HP tries big buyback to quell investor discontent

30 Aug 2010

Like many tech companies, HP is sitting on a large cash pile. The company's bidding war for 3PAR raises fears this hoard could be squandered. Promising to repurchase $10 bln of stock soothes shareholders. An ounce of prevention refraining from such battles would be better.

Infineon deal sticks closer to Intel’s knitting

30 Aug 2010

The $1.4 bln purchase of Infineon's mobile unit is a far cry from Intel's expensive gamble on security software maker McAfee. The business hews closely to Intel's core competencies in semiconductors, and gives the company a better shot at catching up to rivals in mobile devices.

3PAR battle is case of undisciplined cash vs. cash

27 Aug 2010

Bidding for the storage firm reached a silly $2 bln with HP s third riposte to Dell. At triple 3PAR s undisturbed value, only a creative financier with a spreadsheet and a bong could justify the figures. Cash is burning holes quickly in the pockets of these wayward tech giants.

HP’s deal mojo unrestrained by l’affaire Hurd

23 Aug 2010

Any bankers worried that the tech group s appetite for M&A might wane after the CEO s ignominious departure can breathe easier. If HP s $1.6 bln bid for 3PAR is anything to go by, its ardor may even have intensified. It s paying a big premium to bust up an agreed deal with Dell.

Surprise Intel $7.7 bln security deal is a gamble

19 Aug 2010

Mobile gadgets are the chip industry's future, and Intel has fallen behind. It is betting that combining McAfee's security software with its hardware will give it a leg up. Perhaps. But investors who knocked down Intel's shares are rightly skeptical the chipmaker can pull it off.

Did HP’s Hurd try too hard to please Wall St?

10 Aug 2010

HewlettPackard s recently jettisoned boss won over investors by aggressively acquiring rivals and cutting costs. But he may have left thin pickings for a successor. R&D has been cut to the bone. While proforma earnings growth has been excellent, cash flow hasn t quite kept up.

Hurd scandal gives HP chance for governance reboot

9 Aug 2010

Losing Chairman and CEO Mark Hurd to sexual harassment and expense fiddling charges will hurt, after all the good he did for the tech company. Finding a replacement with both operational and strategic expertise won't be easy. HP should use the moment to split the two roles.

SMART Tech’s IPO a B-plus, but could do better

14 Jul 2010

The interactive whiteboard maker s listing this week may be the biggest U.S. IPO so far in 2010. SMART dominates educational markets, making it a leader in a hot niche. But to give investors a big payoff, it must graduate to business and government markets for its gadgets, too.

iPhone’s flaw is less about antenna, more about PR

13 Jul 2010

Steve Jobs newest handset seems to have a minor glitch with its antenna band. No big deal. The problem is Apple s tendency toward secrecy and denial which has turned a potentially routine product glitch into a fullblown investor concern wiping out $5 bln of value.

Apple’s spat with Google should cheer regulators

10 Jun 2010

The latest clash of the tech giants has Steve Jobs essentially barring Google from serving ads on iPhones and iPads. While this may seem anticompetitive, the sniping is actually a healthy sign of a vibrant rivalry. Saber rattling from watchdogs would further encourage it.

Microsoft needs to be smarter about smart phones

26 May 2010

The software giant is shaking up its games, music and gadget unit after a disappointing fiveyear run. Microsoft has to kick its troubled handset effort into gear and decide soon if it can realistically compete with Android and the iPhone. If not, bigger changes may be in order.

Facebook’s strength may be its greatest weakness

26 May 2010

The network effect created by the site s 400 million pals is what has made it such a compelling business. It also amplifies defects, particularly in the area of privacy. Fresh changes may quell the latest uproar but shaky management decisions will keep costing it friends.

Tony Blair dons new cap – of a venture capitalist

25 May 2010

Britain s former prime minister will advise Silicon Valley greentech investment firm Khosla Ventures. Blair s trip to California buffs his reputation and may line his pockets. Importantly, Khosla gets government knowhow a vital competence in heavily subsidized energy markets.

Go East, young nerd!

18 May 2010

Apple, Cisco and Microsoft have $120 bln in cash and investments between them. Yet much of it is trapped overseas, and bringing it back to the U.S. would cause a huge tax hit. So the companies are looking for acquisitions overseas creating an opportunity for tech startups.

In cellphone wars, computers kill the radio stars

11 May 2010

The future of the mobile handset clearly lies in data and computing. Voice is but an afterthought. That explains the massive transfer of stock market value from former leaders whose roots lie in radio like Nokia and Motorola to Silicon Valley champs Apple and Google.

Regulators try to nudge Apple toward good behavior

4 May 2010

U.S. antitrust authorities are worried about monopolistic tendencies developing from the iPhone's success. But stiff competition in cellphones makes it hard to prove Apple's actions harm consumers. Government vigilance, though, might prevent abuses before they become entrenched.