Is Samsung Ditching Android?

Samsung appears to have delivered a huge snuff to Android OS maker Google. Samsung’s new smartwatch Gear 2 and Gear 2 Neo, the sequels to the poorly reviewed original Galaxy Gear are going to ship without Android.

Instead, the new Gears run Tizen, another open source operating system that Samsung, Intel, and others are working on. It is starting to look like Samsung wants to distance itself from its reliance on Google for software and services.

Samsung’s official reason is that Tizen has better battery life and performance. The new Gears can get up to an extra two days of battery life by running Tizen, even though they have the same size battery. The Galaxy Gear barely made it through a day on one charge.

To be fair Android isn’t optimized to run on wearable devices like smart watches, but Samsung didn’t want to wait around for Google to catch up. It was clearly concerned about beating Apple to market. So far Apple has not shown up.

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Did Sears Suffer A Data Breach?

Sears Holdings Corp acknowledged it has launched an investigation to determine whether it was the victim of a security breach, following Target Corp’s revelation at the end of last year that it had suffered an unprecedented cyber attack.

“There have been rumors and reports throughout the retail industry of security incidents at various retailers and we are actively reviewing our systems to determine if we have been a victim of a breach,” Sears spokesman Howard Riefs said in a statement on Friday.

“We have found no information based on our review of our systems to date indicating a breach,” he added.

He did not say when the operator of Sears department stores and Kmart discount stores had begun the investigation or provide other information about the probe.

Sears Holdings Corp operates nearly 2,500 retail stores in the United States and Canada.

Bloomberg News reported on Friday that the U.S. Secret Service was investigating a possible secret breach at Sears, citing a person familiar with the investigation. The report did not identify that source by name.

The Bloomberg report said that its source did not disclose details about the scope or timing of the suspected breach.

A spokesman for the U.S. Secret Service declined comment when Reuters asked if the agency was investigating a possible breach at Sears.

The Secret Service is leading the U.S. government’s investigation into last year’s attack on Target, which the company has said led to the theft of some 40 million payment card numbers as well as another 70 million pieces of personal data.

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What Do Smaller Controllers Mean?

If you want a wearable Internet of Things, the electronics have to be as tiny and as energy efficient as possible. That’s why a new microcontroller by Freescale Semiconductor is noteworthy.

The company has produced the Kinetis KLO3 MCU, a 32-bit ARM system that is 15% smaller than its previous iteration but with a 10% power improvement.

Internet of Things is a buzzword for the trend toward network-connected sensors incorporated into devices that in the past were standalone appliances. These devices use sensors to capture things like temperatures in thermostats, pressure, accelerometers, gyroscopes and other types of MEMS sensors. A microcontroller unit gives intelligence and limited computational capability to these devices, but is not a general purpose processor. One of the roles of the microcontroller is to connect the data with more sophisticated computational power.

The Kinetis KLO3 runs a lightweight embedded operating system to connect the data to other devices, such as an app that uses a more general purpose processor.

Kathleen Jachimiak, product launch manager at Freescale, said the new microcontroller will “enable further miniaturization” in connected devices. This MCU is capable of having up to 32 KB of flash memory and 2 KB of RAM.

Consumers want devices that are light, small and smart. They also want to be able to store their information and send it to an application that’s either on a phone or a PC, Jachimiak said.

This microcontroller, at 1.6 x 2.0 mm, is smaller than the dimple on a golf ball, and uses a relatively new process in its manufacturing, called wafer level chip scale packaging. The process involves building the integrated package while the die is still part of a wafer. It’s a more efficient process and produces the smallest possible package, for a given die size.

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Intel Outs New Xeon Chipset

Intel has released details about its new Xeon E7 v2 chipset. The Xeon processor E7 8800/4800/2800 v2 product family is designed to support up to 32-socket servers with configurations of up to 15 processing cores and up to 1.5 terabytes of memory per socket.

The chip is designed for the big data end of the Internet of Things movement, which the processor maker projected will grow to consist of at least 30 billion devices by 2020. Beyond two times better performance power, Intel is promising a few other upgrades with the next generation of this data-focused chipset, including triple the memory capacity, four times the I/O bandwidth and the potential to reduce total cost of ownership by up to 80 percent.

The 15-core variants with the largest thermal envelope (155W) run at 2.8GHz with 37.5MB of cache and 8 GT/s QuickPath connectivity. The lowest-power models in the list have 105W TDPs and run at 2.3GHz with 24MB of cache and 7.2 GT/s of QuickPath bandwidth. There was also talk of 40W, 1.4GHz models at ISSCC but they have not been announced yet.

Intel has signed on nearly two dozen hardware partners to support the platform, including Asus, Cisco, Dell, EMC, and Lenovo. On the software end, Microsoft, SAP, Teradata, Splunk, and Pivotal also already support the new Xeon family. IBM and Oracle are among the few that support Xeon E7 v2 on both sides of the spectrum.

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Can BB Benefit From The WhatsApp Deal?

Facebook Inc’s awe-inspiring $19 billion bid for fast-growing mobile-messaging startup WhatsApp sent shares of BlackBerry Ltd surging after the closing bell as early as Wednesday, as investors were cheered by the lofty valuation for the messaging platform.

The deal sent shares in BlackBerry up as much as 9 percent in trading after the bell because it put a rough valuation metric around the smartphone maker’s own BlackBerry Messaging service.

BlackBerry Messaging, or BBM as it is more commonly known, was a pioneering mobile-messaging service, but its user base has failed to keep pace with that of WhatsApp, in part because BlackBerry had long refused to open the service to users on other platforms.

WhatsApp, with a user base of some 450 million, has grown rapidly. Its service works on Apple Inc’s iOS platform, Google Inc’s market-dominating Android operating system, along with devices powered by both the Windows and BlackBerry operating systems.

BBM remains popular, even though BlackBerry devices have waned in popularity. Late last year, the Waterloo, Ontario-based smartphone maker finally opened the messaging platform to users of iPhones and Android devices, and the service currently has over 80 million active users.

However, investors have attributed little value to the asset within the company. On Tuesday, Raymond James analyst Steven Li, in a note to clients, broke out a sum-of-parts valuation of the company and pegged the value of BBM at merely $240 million, or $3 per user.

Facebook’s valuation of WhatsApp translates into roughly $42 per user, and that could lead investors and analysts to rethink their valuation of the asset within BlackBerry.

BlackBerry has given no indication it is keen to sell the asset. While there has been some speculation that BlackBerry may seek to carve out the unit, or even sell it, the company’s new Chief Executive John Chen has so far said that BBM remains a core asset for the company.

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Sony Exits PC Business

Sony will unload its struggling PC business to a Japanese investment firm, the company said Thursday, raising the possibility that the “Vaio” brand could all but disappear from markets outside Japan.

Tokyo-based investment fund Japan Industrial Partners (JIP) will operate the Vaio PC brand under a newly established firm and initially sell PCs in Japan only.

In another reform aimed at bolstering its restructuring efforts, Sony also said it would turn its beleaguered TV business into a subsidiary.

The moves come as Sony said it now expects a net loss of $1.1 billion for the year to the end of March, a reversal of its October profit forecast.

Vaio, which Sony introduced in 1996, looks set to vanish from most markets, at least for short term, as the new company will initially concentrate on selling consumer and corporate PCs in Japan. Whether or not Sony will continue to produce products under the Vaio brand remains to be seen, Sony said.

Although Sony is selling its PC business, it will continue to produce tablet computers, part of its renewed focus on mobile devices including smartphones.

Sony did not put a price on the sale. Sony will take a 5% stake in the new firm, it said.

Sony will stop making and selling PCs after its 2014 Spring lineup launch, but about 250 to 300 Sony staff, including some from a subsidiary that produces TV sets, cameras and computers at factories in Japan, will be hired by the new company, which is to be based at the hub of Sony’s current PC business in Japan’s Nagano Prefecture.

Meanwhile, Sony said it will turn its TV business, which has faced a decade of losses, into a wholly owned subsidiary by July 2014.

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Google Moves into Conerencing

Google Inc introduced a videoconferencing system for businesses on Thursday, the Internet search company’s latest attempt to generate revenue from corporate customers.

Google said it was partnering with Asus, Hewlett-Packard Co and Dell to offer a specialized version of its Chromebox PC that comes with videoconferencing gear, including a video camera and speakers.

The first Chromebox for meetings to be available is made by Asus and goes on sale in the U.S. on Thursday for $999, Google said. Customers can also pay a $250 annual service and management fee, though the first year is included in the product’s sales price.

The product uses Google’s free Hangouts video chat technology to connect up to 15 separate video streams from users in different locations.

The product will put Google in competition against Cisco Systems Inc and Polycom Inc, which make the video conferencing systems used by many corporations.

The world’s largest Internet search engine, Google makes the vast majority of its revenue from advertising. But Google also sells services to corporate customers, including special versions of its online apps such as email and word processing, as well as Chromebook laptops aimed at business users.

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Google Buys A.I. Firm

Google has purchased DeepMind Technologies, an artificial intelligence company in London, reportedly for $400 million.

A Google representative confirmed the via email, but said the company’s isn’t providing any additional information at this time.

News website Re/code said in a report this past Sunday that Google was paying $400 million for the company, founded by games prodigy and neuroscientist Demis Hassabis, Shane Legg and Mustafa Suleyman.

The company claims on its website that it combines “the best techniques from machine learning and systems neuroscience to build powerful general-purpose learning algorithms.” It said its first commercial applications are in simulations, e-commerce and games.

Google announced this month it was paying $3.2 billion in cash to acquire Nest, a maker of smart smoke alarms and thermostats, in what is seen as a bid to expand into the connected home market. It also acquired in January a security firm called Impermium, to boost its expertise in countering spam and abuse.

The Internet giant said on a research site that much of its work on language, speech, translation, and visual processing relies on machine learning and artificial intelligence. “In all of those tasks and many others, we gather large volumes of direct or indirect evidence of relationships of interest, and we apply learning algorithms to generalize from that evidence to new cases of interest,” it said.

In May, Google launched a Quantum Artificial Intelligence Lab, hosted by NASA’s Ames Research Center. The Universities Space Research Association was to invite researchers around the world to share time on the quantum computer from D-Wave Systems, to study how quantum computing can advance machine learning.

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Amazon, Microsoft Cut Cloud Storage Prices

Last April, Microsoft agreed that it would match Amazon’s Web Services’ (AWS’) prices for compute, storage and bandwidth.

So when Amazon announced last Thursday  that it would cut its S3 (Simple Storage Service) and Elastic Block Store (EBS) prices by up to 22%, Microsoft followed suit the very next day.

“We are matching AWS’ lowest prices (US East Region) for S3 and EBS, reducing prices by up to 20% and making the lower prices available in all regions worldwide,” Microsoft posted in its official blog.

For Microsoft’s “Locally Redundant Disks/Page Blobs Storage,” the company is reducing prices by up to 28%. It is also reducing the price of Azure Storage service by 50%.

Amazon’s new prices take effect Feb. 1. Microsoft’s price cuts begin March 13.

“We’re also making the new prices effective worldwide, which means that Azure storage will be less expensive than AWS in many regions,” Microsoft said.

Amazon said it dropped its prices for its S3 storage by 22% and its EBS standard volume storage and I/O operations by up to 50%.

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vmWare Buys Airwatch

VMware will buy mobile management and security startup outfit Airwatch for $1.54billion.

The firm announced today that the deal has been approved by both companies’ boards and is forecast to close by the end of this quarter.

The deal will see VMware, which also announced estimated revenue of $1.48bn for the fourth quarter of 2013, pay $1.175bn in cash and $365m in installment payments.

Airwatch has nine offices worldwide with a workforce of 1,600 people and lists over 10,000 global customers.

The acquisition, which will help redefine VMware’s product portfolio and bring it more up to date with the industry’s threat landscape, will see the integration of Airwatch staff into the company’s End-User Computing Group, with the team working from its Atlanta base. VMware said it will continue to answer directly to Airwatch founder and CEO John Marshall, who will report to ex-Intel executive and VMware CEO Pat Gelsinger.

VMware EVP and GM of the End-User Computing group Sanjay Poonen said that the company plans to expand Airwatch’s Atlanta offices to become the centre of its mobile operations.

“Our vision is to provide a secure virtual workspace that allows end users to work at the speed of life,” he said. “The combination of Airwatch and VMware will enable us to deliver unprecedented value to our customers and partners across their desktop and mobile environments.”

Almost a year ago, VMWare announced a two percent increase in quarterly profits despite an impressive 22 percent increase in sales, and announced 900 job cuts.

The visualization specialist is one many firms to acquire security companies over the past year. Advanced threat specialist Fireeye announced plans to buy end-point protection firm Mandiant earlier in January for $1bn.

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