IBM Debuts New Mainframe

IBM has started shipping its all-new first z13 mainframe computer.

IBM has high hopes the upgraded model will generate solid sales based not only on usual customer patterns but its design focus aimed at helping them cope with expanding mobile usage, analysis of data, upgrading security and doing more “cloud” remote computing.

Mainframes are still a major part of the Systems and Technology Group at IBM, which overall contributed 10.8 percent of IBM’s total 2014 revenues of $92.8 billion. But the z Systems and their predecessors also generate revenue from software, leasing and maintenance and thus have a greater financial impact on IBM’s overall picture.

The new mainframe’s claim to fame is to use simultaneous multi-threading (SMT) to execute two instruction streams (or threads) on a processor core which delivers more throughput for Linux on z Systems and IBM z Integrated Information Processor (zIIP) eligible workloads.

There is also a single Instruction Multiple Data (SIMD), a vector processing model providing instruction level parallelism, to speed workloads such as analytics and mathematical modeling. All this means COBOL 5.2 and PL/I 4.5 exploit SIMD and improved floating point enhancements to deliver improved performance over and above that provided by the faster processor.

Its on chip cryptographic and compression coprocessors receive a performance boost improving both general processors and Integrated Facility for Linux (IFL) cryptographic performance and allowing compression of more data, helping tosave disk space and reducing data transfer time.

There is also a redesigned cache architecture, using eDRAM technology to provide twice as much second level cache and substantially more third and fourth level caches compared to the zEC12. Bigger and faster caches help to avoid untimely swaps and memory waits while maximisng the throughput of concurrent workload Tom McPherson, vice president of z System development, said that the new model was not just about microprocessors, though this model has many eight-core chips in it. Since everything has to be cooled by a combination of water and air, semiconductor scaling is slowing down, so “you have to get the value by optimizing.

The first real numbers on how the z13 is selling won’t be public until comments are made in IBM’s first-quarter report, due out in mid-April, when a little more than three weeks’ worth of billings will flow into it.

The company’s fiscal fortunes have sagged, with mixed reviews from both analysts and the blogosphere. Much of that revolves around IBM’s lag in cloud services. IBM is positioning the mainframe as a prime cloud server, one of the systems that is actually what cloud computing goes to and runs on.

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IBM Goes Bare Metal

IBM has announced the availability of OpenPower servers as part of the firm’s SoftLayer bare metal cloud offering.

OpenPower, a collaborative foundation run by IBM in conjunction with Google and Nvidia, offers a more open approach to IBM’s Power architecture, and a more liberal licence for the code, in return for shared wisdom from member organisations.

Working in conjunction with Tyan and Mellanox Technologies, both partners in the foundation, the bare metal servers are designed to help organisations easily and quickly extend infrastructure in a customized manner.

“The new OpenPower-based bare metal servers make it easy for users to take advantage of one of the industry’s most powerful and open server architectures,” said Sonny Fulkerson, CIO at SoftLayer.

“The offering allows SoftLayer to deliver a higher level of performance, predictability and dependability not always possible in virtualised cloud environments.”

Initially, servers will run Linux applications and will be based on the IBM Power8 architecture in the same mold as IBM Power system servers.

This will later expand to the Power ecosystem and then to independent software vendors that support Linux on Power application development, and are migrating applications from x86 to the Power architecture.

OpenPower servers are based on open source technology that extends right down to the silicon level, and can allow highly customised servers ranging from physical to cloud, or even hybrid.

Power systems are already installed in SoftLayer’s Dallas data centre, and there are plans to expand to data centres throughout the world. The system was first rolled out in 2014 as part of the Watson portfolio.

Prices will be announced when general availability arrives in the second quarter.

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Slack Acquires Screen Hero

Slack, the IRC-for-businesses company, has acquired screen-sharing collaboration startup Screenhero with an eye toward adding valuable new communications capabilities to its software.

The deal, which was for an undisclosed sum of cash and stocks, sees Screenhero’s six-person team joining Slack to add screensharing, video chat and voice conferencing to the company’s core enterprise chat room service.

Screenhero is designed to let big teams work together like small teams and has found a dedicated customer base with developers, help desk workers and anybody else who has to work together.

That’s a smart alignment with Slack’s own sales pitch. In fact, Screenhero CEO and co-founder Jahanzeb Sherwani said that 50% of Screenhero’s own customers are also Slack customers, even as both companies made use of each others’ products interally. He added that the company was “under no pressure to sell,” but decided that cozying up with Slack would allow Screenhero to do more with its core concept faster.

It sounds like a match made in “in a Reese’s factory,” quipped Slack CEO and co-founder Stewart Butterfield.

Under this deal, Screenhero will continue to operate as a separate entity, and people can use it as they always have been. But eventually, Sherwani said, all of its features will make it into Slack and the standalone product will be discontinued.

Butterfield said that it’s just a natural progression for Slackas it goes after “bigger and weirder” companies. You can still use whatever external services you’d like for video, voice and screen sharing, per Slack’s emphasis on supporting as many services as a customer might want to use with slick native integrations. But Butterfield wants to ensure that out of the box, Slack customers get something broadly useful for collaboration without having to go through the effort.

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Ericsson Goes After Xiaomi

Ericsson has thrown a spanner into Chinese firm Xiaomi’s expansion plans, and has reportedly stopped it from selling handsets in India.

According to reports, this is already happening. We have asked Ericsson to confirm its role and what it wants to say about it. It told us that the reports are true and that it is ready to defend itself.

“It is unfair for Xiaomi to benefit from our substantial R&D investment without paying a reasonable licensee fee for our technology. After more than 3 years of attempts to engage in a licensing conversation in good faith for products compliant with the GSM, EDGE, and UMTS/WCDMA standards, Xiaomi continues to refuse to respond in any way regarding a fair license to Ericsson’s intellectual property on fair, reasonable and non-discriminatory (FRAND) terms,” it said in a statement.

“Ericsson, as a last resort, had to take legal action. To continue investing in research and enabling the development of new ideas, new standards and new platforms to the industry, we must obtain a fair return on our R&D investments. We look forward to working with Xiaomi to reach a mutually fair and reasonable conclusion, just as we do with all of our licensees.”

Xiaomi has responded to Bloomberg but it declined to say too much until it has access too all of the information.

“Our legal team is currently evaluating the situation based on the information we have,” said the spokesperson. “India is a very important market for Xiaomi and we will respond promptly as needed and in full compliance with India laws.”

The banning on the sale of devices was approved by a court in Delhi India, according to reports, and is based on an Ericsson claim on eight patents that it owns.

Xiaomi has bold plans for its own future and sees itself competing against rivals like Samsung and Apple. It has given itself between five and 10 years to do this, and will presumably want to include the Indian market in those plans.

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IBM And Tencent Team Up

Tencent Holdings Ltd announced that it would be teaming up with International Business Machines Corp (IBM) on a new cloud software business for corporate customers, a marked departure for one of the dominant forces in China’s consumer Internet industry.

Best known for its popular WeChat messaging app and its online games rather than business software, Tencent said its cloud unit would now target small and medium enterprises in the healthcare and “smart city” industries.

Many technology firms are jockeying for a slice of China’s enterprise software market, which promises to grow sharply in coming years as businesses modernize their IT operations and move data onto the cloud.

Tencent’s alliance with IBM, which has deep experience providing computing and consulting services to corporate clients, provides the Shenzhen company a competitive answer to its Chinese rival Alibaba Group Holding Ltd’s nascent cloud efforts.

An e-commerce giant, Alibaba has been slowly building its cloud unit, which recorded just $38 million in revenue in the three months ended June 30.

Tencent said it would tap IBM for its “industry expertise and enterprise reach” but did not disclose financial terms of the deal.

For IBM, the Tencent deal is just the latest in a recent spate of new software partnerships in China, where its hardware sales have been sliding.

IBM announced a deal earlier this year to install its cutting-edge DB2 database software on Chinese rival Inspur International Ltd’s machines. Big Blue also agreed to license its database and big data technology to Chinese software vendor Yonyou Software Co Ltd.

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Apple Changes Policy In China

Apple Inc has started the processing of keeping the personal data of some Chinese users on servers in mainland China, marking the first time the tech giant is storing user data on Chinese soil.

The storage of user data in China represents a departure from the policies of some technology companies, notably Google Inc, which has long refused to build data centers in China due to censorship and privacy concerns.

Apple said the move was part of an effort to improve the speed and reliability of its iCloud service, which lets users store pictures, e-mail and other data. Positioning data centers as close to customers as possible means faster service.

The data will be kept on servers provided by China Telecom Corp Ltd, the country’s third-largest wireless carrier, Apple said in a statement.

“Apple takes user security and privacy very seriously,” it said. “We have added China Telecom to our list of data center providers to increase bandwidth and improve performance for our customers in mainland china. All data stored with our providers is encrypted. China Telecom does not have access to the content.”

A source with knowledge of the situation said the encryption keys for Apple’s data on China Telecom servers would be stored offshore and not made available to China Telecom.

Apple has said it has devised encryption systems for services such as iMessage that even Apple itself cannot unlock. But some experts expressed scepticism that Apple would be able to withhold user data in the event of a government request.

“If they’re making out that the data is protected and secure that’s a little disingenuous because if they want to operate a business here, that’d have to comply with demands from the authorities,” said Jeremy Goldkorn, director of Danwei.com, a research firm focused on Chinese media, internet and consumers.

“On the other hand if they don’t store Chinese user data on a Chinese server they’re basically risking a crackdown from the authorities.”

Goldkorn added that data stored in the United States is subject to similar U.S. regulations where the government can use court orders to demand private data.

A spokesman for China Telecom declined to comment.

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Insurers Eyeing Cyber Coverage

Insurers are eagerly monitoring exponential growth in the tiny cyber coverage market but their lack of experience and skills handling hackers and data breaches may keep their ambitions in check.

High profile cases of hackers seizing sensitive customer data from companies, such as U.S. retailer Target Corp or e-commerce company eBay Inc, have executives checking their insurance policies.

Increasingly, corporate risk managers are seeing insurance against cyber crime as necessary budget spending rather than just nice to have.

The insurance broking arm of Marsh & McLennan Companies estimates the U.S cyber insurance market was worth $1 billion last year in gross written premiums and could reach as much as $2 billion this year. The European market is currently a fraction of that, at around $150 million, but is growing by 50 to 100 percent annually, according to Marsh.

Those numbers represent a sliver of the overall insurance market, which is growing at a far more sluggish rate. Premiums are set to grow only 2.8 percent this year in inflation-adjusted terms, according to Munich Re, the world’s biggest reinsurer.

The European cyber coverage market could get a big boost from draft EU data protection rules in the works that would force companies to disclose breaches of customer data to them.

“Companies have become aware that the risk of being hacked is unavoidable,” said Andreas Schlayer, responsible for cyber risk insurance at Munich Re. “People are now more aware that hackers can attack and do great damage to central infrastructure, for example in the energy sector.”

Insurers, which have more experience handling risks like hurricanes and fires, are now rushing to gain expertise in cyber technology.

“It is a difficult risk to price by traditional insurance methods as there currently is not statistically significant actuarial data available,” said Robert Parisi, head of cyber products at insurance brokers Marsh.

Andrew Braunbergon, research director at U.S. cybersecurity advisory company NSS Labs, said that some energy companies have trouble persuading insurers to provide them with cyber coverage as the industry is vulnerable to hacking attacks that could trigger disasters like an explosion in a worst-case scenario.

Pricing on policies for retailers has climbed in the wake of recent high-profile breaches at Target, Neiman Marcus, and other merchants, he added.

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Verizon Wins Top Honors

RootMetrics awarded Verizon Wireless its seal of approval in its latest biannual ranking of wireless network performance in cities across the U.S.

Verizon ranked first or was tied for first in 115 of 125 cities for overall network performance during the first half of 2014, leading all three other national carriers — AT&T, Sprint and T-Mobile.

Sprint didn’t finish first in any of the cities, while Verizon tied with either AT&T or T-Mobile, or both, in 56. That meant that AT&T was the only first place finisher in 59 cities, including major cities such as Cincinnati, Colorado Springs, Colo., Daytona Beach, Fla., Detroit, Los Angeles, Miami, Minneapolis, Nashville, Salt Lake City, San Antonio and Seattle.

RootMetrics found that Verizon finished first in 23 of 50 airport network evaluations for the first half of the year and tied for first in seven out of 50 airports. Verizon won or tied at four major airports: Atlanta, Chicago, Los Angeles and Denver.

Verizon has its 4G LTE network in 500 U.S. cities, providing access to 97% of the U.S. population. RootMetrics used devices capable of connecting to Verizon’s XLTE network, now operating in 300 cities.

XLTE uses AWS spectrum.

RootMetrics is an independent research company that uses testers driving in cars and in stationary locations, both indoors and outdoors, to conduct thousands of tests in each city to evaluate reliability and speed of connections and call, data and text performance. The company uses unmodified smartphones purchased off-the-shelf from operator stores.

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Microsoft Adds Anti-snooping Safeguards

Microsoft has added encryption safeguards to the Outlook.com webmail service and to the OneDrive cloud storage service, in part to better protect these consumer products from government surveillance.

“Our goal is to provide even greater protection for data across all the great Microsoft services you use and depend on every day. This effort also helps us reinforce that governments use appropriate legal processes, not technical brute force, if they want access to that data,” Matt Thomlinson, vice president, Trustworthy Computing Security, at Microsoft wrote in a blog post.

The move follows similar ones from other cloud computing providers. For example, Google announced end-to-end encryption for Gmail in April, including protection for email messages while they travel among Google data centers. It recently announced similar encryption for its Google Drive cloud storage service.

It’s not clear from Microsoft’s announcement whether the encryption protection it announced covers Outlook.com messages and OneDrive files as they travel within Microsoft data centers. It’s also not clear what, if any, encryption OneDrive and Outlook.com have had until now. Microsoft didn’t immediately respond to a request for comment.

Cloud computing providers like Microsoft, Google, Amazon and many others have been rattled by disclosures from former National Security Agency contractor Edward Snowden regarding government snooping into online communications, due to the effect on their consumer and business customers.

As a result, these companies have been busy boosting encryption on their systems, while also lobbying the U.S. government to stop the stealthy and widespread monitoring of Internet services.

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Oracle Takes A Fall

Oracle posted fiscal fourth-quarter results that were just horrible for investors looking for more progress in web-based services, sending its shares lower.

The company had been expected to report a pickup in its software business and progress in cloud computing, shares of Oracle had gained 10 percent over the past three months. However yesterday it was clear that Oracle is getting a kicking from the competition like Salesforce.com and Workday which have been offering competitive software and Internet-based products at prices that often undercut Oracle.

Tech spending is likely to fall as more companies move to the cloud. Oracle has been rolling out its own cloud-based products but they remain under five percent of its overall revenue. For the fiscal first quarter, Oracle expects software and cloud revenue to grow between 6 percent and 8 percent. That forecast includes expectations for software- and platform-related cloud services to grow between 25 percent and 35 percent.

Oracle said it expects its hardware system revenue to be in a range of down 1 percent to up 3 percent.

For its latest fourth quarter, Oracle said overall revenue rose 3 percent to $11.3 billion. That was less than the $11.48 billion analysts had expected on average. Net income fell 4 percent to $3.6 billion.

Revenue from Oracle’s hardware systems products grew 2 percent to $870 million.

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