Enterprise headlines and summaries, 2009-02-03

  • Bank of New Zealand Reduces Carbon Footprint with Red Hat on the Mainframe
    Red Hat, Inc. (NYSE: RHT), the world’s leading provider of open source solutions, today announced that Bank of New Zealand, a subsidiary of the National Australia Bank Group, has deployed Red Hat Enterprise Linux 5 on IBM System z mainframes to solve environment, space and cost issues related to its datacenter. With Red Hat and IBM solutions, Bank of New Zealand has significantly reduced its hardware footprint, power consumption, heat and carbon emissions and costs, including an expected 20 percent cost reduction over the life of the platform.
  • IT Salary Growth Slowing But Still Positive in 2009
    Yet our analysis indicates that, in real terms, IT workers could come out ahead in 2009 if inflation remains in flat or negative territory throughout the year, as many predict. The Computer Economics 2009 IT Salary Report projects that median base pay for IT managers and staff will actually increase slightly in 2009, driven mostly by annual cost-of-living raises that IT organization will award to existing employees. As shown in Figure 1, we project median salary growth for all IT employees will be about 2% in 2009. We also forecast that base pay levels for IT executives, directors, managers, and developers will rise from 2% to 3% this year, while median base wages for other IT workers will rise from by 1.5% to 2.5%.
  • Venture Capitalists: Overpaid and Overhyped
    The swashbuckling risk takers in venture capital have been laying giant eggs for a decade. Could this finally be Sand Hill Road’s day of reckoning?
  • Tech layoffs leave H-1B holders in vulnerable position
    And when H1-B workers do lose their jobs, they “are no longer eligible to be in the United States,” Kussin said. They generally have a 60-day grace period in which to find a new job. The San Jose Mercury News talked to two H-1B holders who are in a perilous situation, using pseudonyms to protect their identity. One, called “Prasad,” is 28, from India and has a master’s in electrical engineering from MIT. His position at a Silicon Valley startup was cut in December, and the company, realizing his situation, agreed to keep him on for two more months to buy him time to hunt for a new job. So far, he’s had no luck.
  • Microsoft offers new time-sensitive support service
    Microsoft for the first time has said it will pay a financial penalty if it doesn’t reach its service-level goals for a technical support product. A new service called Premier Mission Critical Support is now available, to which Microsoft has attached a 30-minute response-time guarantee, said Bryan Belmont, general manager of Microsoft Services’ support and health division. If a customer reports a problem, Microsoft will have to respond within 30 minutes to report it is working on the problem. If it doesn’t, Microsoft has to pay a fine to the customer, he said.
  • Where’s the money at? Veritude reveals 2009 IT hiring trends
    First, the bad news: the cutbacks are real. In early 2008, only 4% of the companies Veritude surveyed estimated decreases in their IT staffing requirements. This year that number has jumped to 38%. And whereas a majority (52%) projected increases in 2008, only 38% project increases this year. Planned layoffs and budget constraints were cited as the leading reasons for the reduced staffing projections. Nothing shocking there. But there is plenty of silver lining. First, most of the companies looking at decreased IT staffing only plan decreases of 1-5%. Sure, that’s a lot in the overall scheme of things, but it could be a lot worse. Try finding work as an investment banker or assembly line worker these days.
  • Venture Capital’s Coming Collapse
    Heroes of capitalism they’re not. It has been 11 years since the venture industry has returned more cash than it has plowed into investments, according to the National Venture Capital Association. The industry is now managing $257 billion, up from $64 billion in 1997.
  • PTC’s slump makes it a serious acquisition target
    Product lifecycle management vendor Parametric Technology Corporation’s announcement of an expected drop in Q1 2009 earnings has sparked a steep decline in its share price, leading Datamonitor to believe that the vendor has become a potential acquisition target. Of the possible buyers, Infor seems particularly likely to attempt a takeover.
  • Microsoft vs. Apple: Beware of your `killer instinct’
    At the same time, Perlow presents an interesting view into Microsoft’s corporate culture. In the corridors of Redmond, it’s all about “us versus them,” with “them” being the target of the month, year or decade: Apple, Oracle, IBM, Google, Netscape, the EU, whomever.
  • Satyam says won new deals despite fraud revelation
    Satyam Computer Services Ltd (SATY.BO) won 15 outsourcing contracts in January despite revelation of India’s biggest corporate accounting fraud at the company, a spokeswoman said. The contracts were in markets such as the United States, Europe, Japan, Africa, the Middle East and India, she said in an e-mailed statement to Reuters. “As of now there has been only one client termination,” the spokeswoman said, referring to the decision of U.S.-based State Farm Insurance to terminate its contract with Satyam after its founder quit on January 7 admitting accounts were falsified for years.
  • Oracle’s Ellison Takes Shots at Salesforce.com: Competitive Vitriol or Acquisition Foreplay?
    This is an important battle to watch, not only for the entertaining war of words but also because the more companies (especially big companies, like General Electric) that embrace SaaS options, the more pressure gets applied to the traditional on-premise software model. Like his former boss, Benioff isn’t afraid to espouse his software industry views. At the Web 2.0 Summit in San Francisco late last year, Benioff tried to write an obituary for the traditional approach to on-premise enterprise software. SaaS, Benioff said, couldn’t even be compared to “mature, dying models like Oracle and SAP, which [are] maybe already dead.” On some level, that’s got to make Ellison just a little bit proud of his former protégé.
  • SAP Takes a Page From Rivals for Software Update
    The German software company will introduce Wednesday a new version of its flagship business package that lets customers pay for and use just the pieces they really need. Companies could, for example, get new payroll software without changing the inventory database. The new software, called Business Suite 7, also eliminates the need to do onerous upgrade.

One Response

  1. I recently came accross your blog and have been reading along. I thought I would leave my first comment. I dont know what to say except that I have enjoyed reading. Nice blog. I will keep visiting this blog very often.



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