Xerox Moving Into IT Services

Printer and copier maker Xerox Corp forecast current-quarter earnings below estimates as it quickens efforts to transform itself into a technology services provider.

Xerox, whose shares were little changed at midday, also offers services such as managing toll systems and healthcare programs to counter sluggish growth in its printers and copiers business, which accounts for about 40 percent of its revenue.

Services is now the larger part of the company’s business and lower margins in IT and business process outsourcing is dragging overall margins.

The company said it expects second-quarter revenue from its document technology business, which includes printers and copiers, to decline in the mid-single digits. Revenue fell 9 percent to $2.14 billion in the business in the first quarter.

Based in Norwalk, Connecticut, Xerox moved into business services with its purchase of Affiliated Computer Services Inc (ACS) for $5.5 billion in 2009 – the company’s biggest deal in its 106-year history.

Xerox said it plans to quicken the pace of a restructuring plan kicked off in the last quarter of 2012 and included a 2-cent restructuring charge in its second-quarter forecast.

Xerox said it expects flattish revenue for the full year, compared with previous expectations of up to a 2 percent growth, it said on a conference call with analysts.

The company said it was on track to reach its target of adjusted EPS of $1.09 to $1.15 for the full year and to generate operating cash flow of $2.1 billion to $2.4 billion.

“Europe remains weak. US remains stable, but weak. We have not seen a pickup in the US,” Xerox CEO Ursula Burns said on a conference call with analysts.

“We did see a slowdown, a bit of a slowdown, in some developing market economies. But our business model is fairly resilient in the developing markets,” she said.

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Citrix Goes To The Cloud

Citrix System’s GoToWebcast has become generally available in North America and Europe, offering users a cloud-based webcasting tool for up to 5,000 participants.

The subscription-based GoToWebcast allows users to broadcast unlimited audio and video presentations to live and on-demand audiences that can access them using mobile devices such as Apple’s iPhones and iPads, or Android-based smartphones and tablets.

To simplify administration, GoToWebcast has a five-step wizard that walks users through setting up their event. Users are first asked to schedule the event, including deciding audience size and if the web cast should be available on-demand or live with an archive. Users are then asked to select registration alternatives, multimedia options, choose what content to upload and finally decide on security and email settings.

In addition to audio and video, users can upload presentation documents, chat with attendees, conduct polls and link to social media channels. Citrix didn’t announce any pricing for the new service, only saying that users pay a fixed monthly fee.

The company also released a beta version of GoToWebinar with HDFaces for the 500- and 1,000-attendee plans. HDFaces is a video conferencing technology that lets up to six presenters lead interactive Q&A sessions, host panel discussions, or do demonstrations in high-definition.

The announcement comes after the recently announced availability of HDFaces for up to 100 participants in GoToWebinar and GoToTraining sessions, as Citrix adds high-definition video across its GoTo portfolio.

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Microsoft Looks Into Smart Watches

Microsoft is developing designs for a touch-enabled smart watch, joining a number of other large competitors like Samsung Electronics and Apple who are said to be working on similar devices, according to a recent report.

Executives at suppliers to Microsoft told The Wall Street Journal that the company was sourcing components for the prototype of what could potentially be a “watch-style device.”

Microsoft has, for example, requested 1.5-inch displays from component makers for the prototype, an executive at a component supplier told the newspaper. It is unclear whether the company will decide to go ahead with the watch, the newspaper added.

Microsoft could not be immediately reached for comment.

A large number of vendors are looking at new product categories beyond smartphones and tablets.

This isn’t the first time, however, that Microsoft may be looking at watches as a product. It launched a smart wrist watch around a concept called Smart Personal Object Technology it unveiled in 2002, but withdrew it after a lackluster performance.

The Redmond, Wash., company is seeing its key PC market under threat from smartphones and tablets, and the failure of its new Windows 8 operating system to boost sales significantly. IDC said last week that first quarter PC shipments totaled 76.3 million units, down 13.9% compared to the same quarter last year. (The decline was worse than the 7.7% previously forecast by the analyst firm, and the market could be headed into further contraction, the research firm added.

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Is Verizon Interested In Clearwire?

Verizon Wireless reportedly has offered $1 billion to $1.5 billion to acquire some of Clearwire’s spectrum leases, possibly complicating Sprint Nextel’s attempt to buy out the company in conjunction with its acquisition by Softbank.

Clearwire is struggling financially but owns broad swaths of spectrum, the lifeblood of wireless networks. The April 8 bid from “Party J,” which Clearwire disclosed in a Securities and Exchange Commission filing on Friday, is the latest in a series of offers for its spectrum licenses. Unnamed people familiar with the matter identified “Party J” as Verizon Wireless, according to a report in The Wall Street Journal.

Clearwire is a key part of a complicated set of possible transactions that could make a much stronger competitor out of Sprint, the country’s third-largest mobile operator. Sprint already owns roughly half of Clearwire and is bidding about $2.2 billion to buy the rest of its stock. That deal depends on Softbank’s planned $20.1 billion offer for 70% of Sprint, which is still undergoing regulatory review.

Clearwire holds 150MHz of spectrum or more in most major markets of the U.S. Verizon would buy only a portion of that spectrum. “Party J offered to acquire Clearwire spectrum leases generally located in large markets,” Clearwire said in the Friday filing, a proxy statement to shareholders on the Sprint buyout bid. The proposed gross price of $1 billion to $1.5 billion would be reduced by what Clearwire pays for the leases, which could be substantial, according to Clearwire’s filing. The company said it would discuss the offer with “Party J” and Sprint.

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6 of 10 Companies Approve BYOD

More than six out of 10 companies allow or mandate the use of employee-owned mobile devices for work in order to increase productivity, according to a survey published on Tuesday.

While the BYOD (bring your own device) push has been at the forefront of press coverage, the majority of companies still provide at least a subset of devices to employees. One third of companies strictly mandate which devices can be used for work purposes and don’t allow any type of device provided by the employee, according to the survey conducted by the Computing Technology Industry Association (CompTIA), a nonprofit trade group.

The online survey of 502 U.S. IT and business executives was conducted in February. It also found that the most popular option, at 58%, was to have a mix of corporate-owned and employee-owned devices.

For 53% of those surveyed, the top reason for allowing employees to use or select their own devices was to increase productivity while employees are away from the office. Another reason was that employees like to use familiar devices.

Twelve percent of the respondents stated it was simply too difficult to stop employees from using their own devices.

CompTIA’s report said that companies looking to maximize the benefits of a mobile device-enabled workforce must “look beyond simply which devices are used and re-examine business processes and workforce needs.”

Companies should assess the specific needs of workers, rather than just deploying one device over another on a corporate-wide basis, said Seth Robinson, director, technology analysis, at CompTIA.

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IBM’s Next-gen Transistors Mimick Human Brain

IBM has discovered a way to make transistors that could be turned into virtual circuitry that mimics how the human brain operates.

The new transistors would be made from strongly correlated materials, such as metal oxides, which researchers say can be used to build more powerful — but less power-hungry — computation circuitry.

“The scaling of conventional-based transistors is nearing an end, after a fantastic run of 50 years,” said Stuart Parkin, an IBM fellow at IBM Research. “We need to consider alternative devices and materials that operate entirely differently.”

Researchers have been trying to find ways of changing conductivity states in strongly correlated materials for years. Parkin’s team is the first to convert metal oxides from an insulated to conductive state by applying oxygen ions to the material. The team recently published details of the work in the journal Science.

In theory, such transistors could mimic how the human brain operates in that “liquids and currents of ions [would be used] to change materials,” Parkin said, noting that “brains can carry out computing operations a million times more efficiently than silicon-based computers.”

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Google Fights NSL Over Data Privacy

Google is fighting a National Security Letter (NSL) issued by the US government, with the Electronic Frontier Foundation (EFF) acknowledging it is one of the first firms to do so.

Google took the unusual step last month of revealing, albeit in vague terms, the number of NSLs it received from the US government. At the time the company said it was working with the authorities to improve transparency around the subject, but according to court filings it is also fighting against handing over users’ data.

In March, Google filed a petition to set aside a legal process. Kevan Fornasero, a lawyer for Google said in the filing that petitions “filed under Section 3511 of Title 18 to set aside legal process issued under Section 2709 of Title 18 must be filed under seal because Section 2709 prohibits disclosure of the legal process”.

Fornasero’s reference to Section 2709 refers to the ability of the FBI to issue NSLs and force the handover of user data. According to the EFF, Google is one of the first communications companies to fight an NSL, but because Section 2709 doesn’t allow firms to disclose the legal process, few people can be certain that others haven’t tried to stand up to the US government.

Matt Zimmerman, a lawyer for the EFF said, “The people who are in the best position to challenge the practice are people like Google. So far no one has really stood up for their users’ among large Internet service providers.”

Google has tried in recent years to provide users with some information on how it deals with government agencies’ requests for user data. If the firm can succeed in its fight against NSLs then it could open the floodgates for others to stand up against a law that some see to be nothing more than a snooper’s charter.

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Windows RT Devices To Drop In Price

Prices of Windows RT devices have started to decline, signaling an attempt by PC makers to quickly clear out stock after poor adoption of tablets and convertibles with the operating system.

Microsoft released Windows RT for ARM-based devices and Windows 8 for Intel-based devices in October last year. The price drop is an acknowledgement that Windows RT has failed, analysts said.

Prices of popular products usually don’t fall, but Windows RT devices were not in demand, and prices fell, analysts said.

The starting price for Dell’s XPS 10 is now US$449 for a 32GB model, scalping $50 off the original launch price. The 64GB model is $499, which is a drop from the original $599 price. By comparison, the price of the Latitude 10 tablet with Intel processors and Microsoft’s Windows 8 OS remained stable at $499.

Asus’ VivoTab RT, which is largely sold through retailers, is being offered by Amazon.com for $382 with 32GB of storage, which is a heavy discount from the $599 launch price. Retailers like Best Buy, Staples and Office Depot have also dropped the price of the tablet by $50, now selling it for $549.

Newegg is listing VivoTab RT as having been discontinued. Asus did not respond to a request to comment on whether the company was still offering the tablet.

Lenovo is offering the IdeaPad Yoga 11 for $599 as part of a seven-day deal, which is a drop from the original $799 price. However, TigerDirect is offering an IdeaPad Yoga 11 model for $599 on its website, while Amazon is selling a model for $499.99.

Samsung did not ship its Windows RT tablet, Ativ Tab, to the U.S. market.

However, the starting price of Microsoft’s Surface RT remained consistent at $499 on its online store. Microsoft also offers Lenovo’s IdeaPad Yoga 11 through its store, but has stopped offering tablets like the VivoTab RT on its website. The company last month said it stocks its store with RT devices based on availability and demand.

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Court Sides With Aereo

Streaming television service Aereo does not infringe the copyrights of over-the-air TV stations, and a request from several stations to shutter the New York-based service isn’t warranted, an appeals court has ruled.

The U.S. District Court for the Southern District of New York was right to deny a request for a preliminary injunction from Fox, ABC, WNET and other TV stations, the U.S. Court of Appeals for the Second Circuit ruled Monday.

The TV stations had argued Aereo, a service that allows subscribers to record and play over-the-air TV programs on Internet-connected devices, violated their so-called public performance right, their exclusive right in U.S. copyright law to “to perform the copyrighted work publicly.”

But Judge Christopher Droney, writing for the appeals court majority, noted that Aereo makes use of technology already found by courts to be legal. The service combines Aereo-designed mini TV antennas, DVRs, and a Slingbox-like streaming service, he noted.

Aereo users, by making personal copies of TV programs for their own use, were not creating public performances, Droney added.

The TV stations “have not demonstrated that they are likely to prevail on the merits on this claim in their copyright infringement action,” Droney wrote in rejecting the request for an injunction against the service. “Nor have they demonstrated serious questions as to the merits and a balance of hardships that tips decidedly in their favor.”

Aereo praised the decision. The decision “again validates that Aereo’s technology falls squarely within the law, and that’s a great thing for consumers who want more choice and flexibility in how, when and where they can watch television,” Chet Kanojia, Aereo’s CEO and founder, said in a statement.

Lawyers for the TV stations weren’t immediately available for comment.

Digital rights group Public Knowledge cheered the ruling, saying it is a “victory for consumer choice and video innovation.”

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Blackberry Plans New Tablet

BlackBerry plans to roll out a larger tablet and two phone-tablet combos, or phablets, over the next year, according to a leaked road map presentation slide.

The three devices will run the BlackBerry 10 mobile operating system, which powers the Z10 smartphone and the upcoming Q10, which features a physical qwerty keyboard, according to the slide, which first appeared over the weekend on Twitter as @BB10Leaks.

BlackBerry officials didn’t comment on the road map. However, in comments to analysts last Thursday, CEO Thorstein Heins said repeatedly that the company will introduce more BlackBerry 10 devices this year, though he didn’t indicate what form factors the products would feature.

The three new devices shown in the slide include a BlackBerry 10 tablet with a widescreen aspect ratio, as well as a “U10″ phone-tablet, which some call a phablet, and an “R10″ phablet with a physical qwerty keyboard.

The slide indicates that the B10 tablet will ship in the third or fourth quarter, while the two phablets will be released later, with the U10 shipping at the end of the year and the R10 in spring of 2014.

There are no specifications on the slide, but the devices appear to be shown roughly in proportion to one another, with the phablets appearing to be wider than the existing Z10 and Q10 smartphones.

BlackBerry already has a 7-in. tablet called the PlayBook that is more square in shape than the widescreen look of the B10 in the slide. Some analysts and bloggers said it’s possible that BlackBerry is developing a competitor to the various 9-to-11-in. tablets already on the market, including many Android tablets, as well as the 9.7-in. iPad.

“BlackBerry wants to be a full-line competitor, particularly for business users, so they have to have a full line of products to compete head-on with Apple and Android, primarily Samsung,” said Jack Gold, an analyst at J.Gold Associates. “I would expect any viable competitor to establish a full line of products touching on all the various preferences of the marketplace, which includes smartphones, phablets and tablets.”

Gold couldn’t confirm whether any of the details in the leaked slide were accurate, but he noted that it doesn’t appear to include the mid-priced smartphones that Heins and other executives have hinted that BlackBerry may launch over the next few quarters.

The PlayBook tablet first went on sale in April 2011, running on what BlackBerry then called the BlackBerry Tablet OS, based on QNX. BlackBerry later said it would merge that tablet operating system into BlackBerry 10. The company also released a major update to the PlayBook tablet operating system in February 2012.

The first release of the PlayBook was criticized for not having native email.

Analysts are not sure that BlackBerry can keep up with production demand for so many new devices that depend on a relatively constrained supply chain for displays and other components. But to boost its global smartphone market share, currently at less than 10%, BlackBerry will need a product lineup with a variety of options.

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