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Judge Rejects Silicon Valley Settlement
August 18, 2014 by admin
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A California judge has rejected the proposed settlement in a lawsuit over no-hire agreements used by top Silicon Valley tech firms, saying the amount being offered to compensate workers is too low.
The remaining defendants in the case — Apple, Google, Intel and Adobe Systems — had reached a deal with the worker’s lawyers to settle the case for US$324.5 million, but Judge Lucy Koh of the federal district court in San Jose, California, said that amount is too low.
After subtracting the fees for the workers’ lawyers — they’re allowed to keep up to a quarter of the award, or $81 million, as well as other money — each worker would be left with an average of only $3,750.
“The Court finds the total settlement amount falls below the range of reasonableness,” Koh wrote in her order, issued Friday.
She said she was troubled that the workers would get less money than under a previous settlement with companies that settled earlier in the case, even though the case has been progressing in the workers’ favor since then.
Last year, Intuit, Lucasfilm and Pixar settled with the workers before the case came to trial.
All of the companies were accused of striking secret deals to not poach each others’ workers, a violation of the Sherman Antitrust Act that reduced the workers’ potential to earn higher wages.
An expert hired for the case has estimated that the workers’ should receive damages of $3 billion, for wages they could have earned if the no-hire agreements hadn’t been in place.
IT Dissatisfaction Growing
Companies want to reduce spending on IT operations and infrastructure and shift resources to revenue-producing areas, according to two new studies. But businesses leaders and IT executives are also registering higher levels of dissatisfaction with IT as more demands are placed on technology.
The reports, by the Hackett Group and McKinsey & Co., both agree that business executives want IT to do more to improve the bottom line while companies spend less on infrastructure in the process.
The bad news for people who work in IT operations is that large businesses expect to cut IT staff positions by about 2% this year, thanks to automation and outsourcing, according the Hackett’s survey of 160 businesses with revenues above $1 billion.
One path to improved automation will likely be through adoption of software-defined infrastructures, something Bank of America plans to do.
IT budgets will grow by 1.7% this year as IT pivots, increasingly, from a service-providing operation to a revenue-generating one, the Hackett Group said in its study.
IT managers are being told that “you’ve got to grow the business, not just run the business,” said Mark Peacock, an IT transformation practice leader and principal at Hackett.
McKinsey & Co., in its online survey of more than 800 executives — with 345 having a technology focus — also found that executives want less of their budgets to go to infrastructure so more resources can be shifted to analytics and innovation.
The McKinsey survey found that business executives are less likely to say now that IT performs effectively, compared to their views two years ago.
“The IT executives are even more negative,” wrote McKinsey, with only 13% of them saying their IT organizations “are completely or very effective at introducing new technologies faster or more effectively than competitors.” That percentage was down from 22% in 2012.
The negative results “likely reflect the overall rising expectations for corporate IT,” wrote McKinsey.
When asked how to fix IT shortcomings, respondents cited improved business accountability, more funds for priority projects and a higher the level of IT talent, the report said.
The Hackett Group survey didn’t report on dissatisfaction, but it did find that the top goal for IT organizations this year is “to strengthen partnership and goal alignment between IT and the business.”
IBM Breaks Big Data Record
IBM Labs claims to have broken a speed record for Big Data, which the company says could help boost internet speeds to 200 to 400Gbps using “extremely low power”.
The scientists achieved the speed record using a prototype device presented at the International Solid-State Circuits Conference (ISSCC) this week in San Francisco.
Apparently the device, which employs analogue-to-digital conversion (ADC) technology, could be used to improve the transfer speed of Big Data between clouds and data centres to four times faster than existing technology.
IBM said its device is fast enough that 160GB – the equivalent of a two-hour 4K ultra-high definition (UHD) movie or 40,000 music tracks – could be downloaded in a few seconds.
The IBM researchers have been developing the technology in collaboration with Swiss research institution Ecole Polytechnique Fédérale de Lausanne (EPFL) to tackle the growing demands of global data traffic.
“As Big Data and internet traffic continues to grow exponentially, future networking standards have to support higher data rates,” the IBM researchers explained, comparing data transfer per day in 1992 of 100GB to today’s two Exabytes per day, a 20 million-fold increase.
“To support the increase in traffic, ultra-fast and energy efficient analogue-to-digital converter (ADC) technology [will] enable complex digital equalisation across long-distance fibre channels.”
An ADC device converts analogue signals to digital, estimating the right combination of zeros and ones to digitally represent the data so it can be stored on computers and analysed for patterns and predictive outcomes.
“For example, scientists will use hundreds of thousands of ADCs to convert the analogue radio signals that originate from the Big Bang 13 billion years ago to digital,” IBM said.
The ADC technology has been developed as part of an international project called Dome, a collaboration between the Netherlands Institute for Radio Astronomy (ASTRON), DOME-South Africa and IBM to build the Square Kilometer Array (SKA), which will be the world’s largest and most sensitive radio telescope when it’s completed.
“The radio data that the SKA collects from deep space is expected to produce 10 times the global internet traffic and the prototype ADC would be an ideal candidate to transport the signals fast and at very low power – a critical requirement considering the thousands of antennas which will be spread over 1,900 miles,” IBM expalined.
IBM Research Systems department manager Dr Martin Schmatz said, “Our ADC supports Institute of Electrical and Electronics Engineers (IEEE) standards for data communication and brings together speed and energy efficiency at 32 nanometers, enabling us to start tackling the largest Big Data applications.”
He said that IBM is developing the technology for its own family of products, ranging from optical and wireline communications to advanced radar systems.
“We are bringing our previous generation of the ADC to market less than 12 months since it was first developed and tested,” Schmatz added, noting that the firm will develop the technology in communications systems such as 400Gbps opticals and advanced radars.
Techies Demand More Money
February 11, 2014 by admin
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Employers may need to loosen their purse strings to retain their IT staffers in 2014, according to a salary survey from IT career websiteDice.com.
Among the tech workers who anticipate changing employers in 2014, 68 percent listed more compensation as their reason for leaving. Other factors include improved working conditions (48 percent), more responsibility (35 percent) and the possibility of losing their job (20 percent). The poll, conducted online between Oct. 14 and Nov. 29 last year, surveyed 17,236 tech professionals.
Fifty-four percent of the workers polled weren’t content with their compensation. This figure is down from 2012′s survey, when 57 percent of respondents were displeased with their pay.
The decrease in salary satisfaction could mean companies will face IT staff retention challenges this year, since 65 percent of respondents said they’re confident they can find a new, better position in 2014.
This dissatisfaction over pay comes even though the survey, released Wednesday, showed that the average tech salary rose 2.6 percent in 2013 to US$87,811 and that more companies gave merit raises. The main reason for last year’s bump in pay, according to 45 percent of respondents, was a merit raise. In comparison, the average tech salary was $85,619 in 2012 and 40 percent of those polled said they received a merit raise.
Meanwhile, 26 percent of respondents attributed their 2013 salary increase to taking a higher-paying job at another company.
Employers realize tech talent is coveted and are attempting to keep workers satisfied by offering them a variety of incentives, the survey found. In 2013, 66 percent of employers provided incentives to retain workers. The two most popular incentives were increased compensation and more interesting work. Incentives that allow employees to better balance their work and personal lives were also offered, such as telecommuting and a flexible work schedule.
Skills that commanded six-figure jobs in 2013 came from some of the hottest areas of IT. Data science led the way with big data backgrounds yielding some of the highest salaries. People skilled in Knowing R, the popular statistical computing language, can expect to make $115,531 on average, while those with NoSQL database development skills command an average salary of $114,796. IT pros skilled in MapReduce to process large data sets make $114,396 on average.
IBM Freezes Employee Salaries
IBM this year won’t be granting any pay raises to its executives or to many of its workers in its Global Technology Services division.
The company said it is only giving pay raises to workers with high-demand skills that the company needs.
IBM customarily issues pay raises during the mid-year period.
“There are targeted skill groups of employees that are eligible for salary increases in 2012,” said Trink Guarino, an IBM spokeswoman. “No executives will be eligible for salary increases.”
Business Insider Tuesday published an internal IBM memo announcing the action that was sent to employees from Global Technology Services executives.
One IBM employee, who didn’t want to be identified, said he believes the lack of pay raises “is part of IBM’s hyper-aggressive plan to meet its 2015 roadmap.”
That IBM roadmap lays out an aggressive growth strategy, which calls for increasing the company’s earnings per share by $20 by 2015.
The employee noted that the company has been spending billions in stock buybacks, but says it can’t afford pay increases.
Rather than reaching profit goals “the old-fashioned way by increasing market share, developing and selling new products,” the company is “maniacally focused on cutting labor costs and off-shoring work to low-cost countries,” the employee said.