Enterprise headlines and summaries, 2009-09-27

  • Oracle & MySQL « Jnan Dash’s Weblog
    Now that Oracle will be the potential owner of MySQL, it will continue to offer it as the open source offering in database. It can position both Oracle and MySQL for different types of applications – Oracle for heavy lifting with high scalability (with its RAC) and complex functionality. It may even show a migration path for those MySQL users to Oracle deployment when needed.
  • SaaS and Cloud Stocks Up Nearly 50% In 2009
    We launched the index in 2008 — and it generated a dismal first-year performance, falling roughly 50 percent as the recession pulled down all companies, including SaaS providers. But 2009 has been a different story. Of the 20 index members, 19 have seen their shares rise. And all of those increases involve double-digit returns so far this year.
  • Amazon EC2 Shows Amazing Growth
    However, the most interesting aspect of Guy Rosen’s analysis is his calculation that 8.4 million EC2 instances have been launched since the launch of Amazon EC2. These are pretty big numbers showing success for cloud based computing. Kudos to Amazon for the success.
  • Anatomy of an Amazon EC2 Resource ID
    * 50,242 instances requested * 12,840 EBS volumes requested * 30,925 EBS snapshots requested * 41,121 reservations requested o Disambiguation: a reservation in this context is an atomic launch of one or more instances. This does not imply a reserved instance. For example, if you launch 1 instance, you get 1 instance ID and 1 reservation ID; if you launch 2 instances in one command, you get 2 instance IDs and still 1 reservation ID. These numbers are impressive, to say the least. Even more impressive is a small hint, lurking between the numbers, that implies that just over the past month Amazon crossed a significant threshold (see below for more details): 8.4 million EC2 instances launched (since EC2’s debut).
  • In-Memory Parallel Execution in Oracle Database 11gR2
    In-Memory Parallel Execution (In-Memory PX) takes advantage of these larger buffer caches but it also ensures we don’t trash the cache. In-Memory PX begins by determining if the working set (group of database blocks) necessary for a query fits into the aggregated buffer cache of the system. If the working set does not fit then the objects will be accessed via direct path IO just as they were before. If the working set fits into the aggregated buffer cache then the blocks will be distributed among the nodes and the blocks will be affinitzed or associated with that node. In previous releases, if the Parallel Execution of one statement read part of an object into the buffer cache, then subsequent SQL statement on other nodes in the cluster would access that data via Cache Fusion. This behavior could eventually result in a full copy of that table in every buffer cache in the cluster. In-Memory PX is notably different because Cache Fusion will not be used to copy the data from its origina
  • YouTube – Marc Benioff on Behind the Cloud
    Salesforce.com founder and CEO Marc Benioff discusses his new book, Behind the Cloud.
  • Google endows $2.5M Rajeev Motwani chair
    “The breadth and depth of Rajeev’s contributions in academia and industry are unparalleled in computer science. Yet they pale in comparison to the impact he had through the many researchers and entrepreneurs whom he taught and mentored,” said Brin, Google‘s president for technology. “While I am sad to lose a good friend, I know his spirit will live on through generations of technologies and technologists to come.” [Really, unparalleled? Read up on Doug Englebart … -DBM]
  • Oracle sees $300M restructuring costs
    In its Securities and Exchange Commission filing Monday, Oracle (NASDAQ:ORCL) said that it recorded $48 million of its annual restructuring plan in the first quarter of fiscal 2010. It said most of the rest of the $300 million in restructuring woukld happen over the next three quarters.

Enterprise headlines and summaries, 2009-09-26

  • The hunt for Oracle Exadata production references
    So far as I can tell, Oracle Exadata production sites are pretty scarce on the ground. What, if anything, am I missing?
  • The ‘Web Squared’ Era
    There’s also a qualitative change happening as the Web becomes more closely integrated with the real world via sensor-based smart phone applications. Web Squared is another way of saying “Web meets World.”
  • Gates Foundation CEO wants biz to house homeless
    Jeff Raikes told the annual meeting of the Greater Seattle Chamber of Commerce that they should consider combatting homelessness as an economic opportunity. The former Microsoft executive spoke of success some programs in Washington and elsewhere have had with getting homeless families back into housing and work.
  • Oracle Won’t Spin Off MySQL
    “We believe MySQL will be positioned against SQL Server and also offering a migration path to Oracle databases, so this acquisition, especially MySQL, is critical for Oracle and I am sure Microsoft is watching is very closely.”
  • Microsoft’s Got a Deal for Small Web Dev Firms
    Microsoft launched a program today that offers its Web development tools, training, and support to Web site design and Web application development firms with 10 or fewer employees. Cost? Three years for just $99. The program, dubbed WebsiteStart, gives developers and firms that join three licenses for Visual Studio 2008 Professional Edition, two licenses for Expression Web 3, and one license for Expression Studio 3, according to a company statement.
  • Hierarchical Agglomerative Clustering with Hadoop
    Hierarchical Agglomerative Clustering is a bottom up clustering approach where at each stage, we find the closest two documents (or document clusters) and merge them into a new cluster. The process continues until some convergence criteria is satisfied. Last week, I described a Map-Reduce job to generate a TD Matrix from the articles on my blog. This week I use the TD Matrix data to cluster the articles using the Hierarchical Agglomerative Clustering algorithm. The code models a 1 + (n * 3) stage pipeline of Map-Reduce jobs, where n is the number of stages (number of documents – number of clusters). The distance measure to compute the closeness between two documents (or document clusters) is cosine similarity. At each stage, two items are merged into one, so one of the criteria for convergence is when the remaining number of document (or document clusters) are less than a threshold value. The other convergence criterion is when merging a document into a document or cluster would resu
  • The Scoop on Hadoop and Vertica
    Rather than create yet another proprietary implementation we chose to integrate with the popular Apache Hadoop project. Our integration efforts together with customer validation and support from Cloudera have taken the form of native Input and Output formatters for Apache Hadoop. These libraries allow Hadoop to read data from Vertica just as it does HDFS and similarly to write data to Vertica as reduce output. We have found over the past few months that by integrating Hadoop with the Vertica database we have been able to enhance the value of both technologies for our customers. With Vertica and Hadoop our customers can combine the performance and scalability of the Vertica Analytic Database with the power and flexibility of MR in innovative ways to solve big data problems using the right tools for the right job.
  • Employees protest vs. poor service
    GSIS Visayas operations vice president, Salvacion Mate, told the DAILY STAR that these problems boil down to the IBM-DB2 database management crashes. She said, IBM promised the GSIS that the database has the capacity of accommodating all the 1.4 million members and pensioners transactions, but it failed. GSIS has suffered at least eight database crashes to date and at least P5 billion in actual damages to the system, a GSIS press statement said.
  • SAP’s Social Playbook
    The LinkedIn partnership will likely mean that any kudos a user earns from SAP could be automatically advertised on that person’s LinkedIn profile. Since SAP software is used by a lot of businesses, that could mean better job opportunities for the company’s most proficient community members.
  • Enterprise Software Acquisitions: Who’s Next?
    The firms that would make significant contributions to the Titans: SAS (Private) Informatica (INFA) MicroStrategy (MSTR) Netezza (NZ) Teradata (TDC)
  • An Emerging Threat to Oracle and SAP
    The third-party approach is catching on with corporate software clients. In 2009 Rimini expects to have about $150 million in maintenance-contract bookings, up from $86 million a year ago. Oracle would charge about double, so that represents about $300 million in potential Oracle revenue, says Cowen analyst Peter Goldmacher. SAP’s maintenance revenue hasn’t been affected much yet because Rimini launched service for customers of the German software giant only three months ago. “It doesn’t mean Oracle will lose all its revenue overnight. We are a rounding error, for now,” Ravin says.
  • Tibco: Strong 3Q Validates Enterprise 3.0 Mantra
    In the third quarter of last year, Tibco earned $11.1 million, or $0.08 a share, on sales of $162.3 million. Its shares closed off $0.07 a share to $9.13 in Thursday’s trading but stormed up $0.67, or 7 percent, to $9.80 following the earnings announcement.
  • The Product Maintenance Paradox!
    With SAP and Oracle said to be realizing gross margins in the neighborhood of 90% on their maintenance business, the economics are simply too strong for third party maintenance providers not to rise up. Some regulatory interventions like antitrust suits may help accelerate the shift,this would embolden service providers to look at the maintenance market form a fresh value perspective.
  • Workday Back Online
    Within hours, all customers were live in our secondary datacenter with all their data intact. We’ve tested our failover plans many times, but this is the first time we did it for real. We’ve learned quite a bit in the process – some of it technical, some of it regarding communications with customers. That knowledge will be used to further refine our datacenter practices, our hardware choices, and our failover plans so that we can do even better in the future.
  • Share and Sell Data with Infochimps
    Sell Data If you’re on the other side, and you have data to offer, you can put your dataset up for sale. Fill out some forms, specify your price, and let Infochimps handle the rest like storage and cataloging. Infochimps takes a 20% commission on each sale for their service.

Enterprise headlines and summaries, 2009-09-25

  • Exclusive Interview With Steve Ballmer: Products, Competition, The Road Ahead
    Ballmer says to expect roughly the same level of activity in the future. “I’m guessing we’re gonna want to buy about 15 companies again next year,” he says. He says most of those will be smaller transactions ranging from $50 million – $400 million. And those companies will have to “really fit well with our technology platforms and distribution,” he added.
  • Comedy Is an Uninvited Guest at Microsoft’s ‘House Party’
    Microsoft has produced its share of quirky marketing messages, but a YouTube clip produced to promote a series of Windows 7 launch parties is a special sort of odd. Oh, so very special.
  • Microsoft Kills Dynamics Mobile
    Microsoft on Thursday said it has discontinued the mobile versions of its Dynamics ERP (enterprise resource planning) products. The first mobile Dynamics product, Dynamics AX Mobile Sales, was introduced in 2007 and let sales people remotely place and track orders, query sales histories and manage advertising campaigns from Windows Mobile devices. Microsoft also offered development tools for businesses to build their own mobile offerings based on Dynamics.
  • Microsoft Dynamics Mobile Team blog : Microsoft Dynamics Mobile Has Been Discontinued
    Microsoft Dynamics Mobile for Microsoft Dynamics AX and Microsoft Dynamics NAV has been discontinued. For more information, please visit PartnerSource at https://mbs.microsoft.com/partnersource/solutions/mobile.
  • H-P CEO: Oracle-Sun Doesn’t Faze Us
    “It’s a big market — we’re very comfortable with co-opetive relationships,” he said, in an innovatively worded response to a question during a meeting for securities analysts late Thursday. “Oracle has been a great partner of H-P’s for a long time — I don’t expect that to change.”
  • Tibco Software 3Q Profit Rises 34% On Margins; Shares Jump
    For the quarter ended Aug. 30, Tibco reported earnings of $14.9 million, or 9 cents a share, up from $11.1 million, or 6 cents a share, a year earlier. Excluding stock compensation and acquisition-related impacts, earnings rose to 13 cents from 11 cents. Revenue declined 7.4% to $150.3 million. Analysts surveyed by Thomson Reuters projected earnings of 11 cents a share on revenue of $145 million. Operating margin increased to 13.6% from 9.4% on a 10% drop in operating costs. License revenue dropped 15%, while service and maintenance revenue fell 1.9%. The company closed 17 deals over $1 million, up from 11 the prior quarter.
  • Informatica Prepares For Info Overload
    Informatica technology allows organizations to leverage data that may be stored in mainframe systems from 30 years ago, to the latest in cloud computing. And that is a tremendous value proposition. We’re uniquely in that position of unifying all of the health care records.
    In order to increase the value of the company, 37signals has decided to stop generating revenues. “When it comes to valuation, making money is a real obstacle. Our profitability has been a real drag on our valuation,” said Mr. Fried. “Once you have profits, it’s impossible to just make stuff up. That’s why we’re switching to a ‘freeconomics’ model. We’ll give away everything for free and let the market speculate about how much money we could make if we wanted to make money. That way, the sky’s the limit!”
  • What Entrepreneurs Want From VCs: Independence And Faster Feedback
    Entrepreneurs who have interacted with more VCs have a less positive view of these investor’s ability to add value pre- and post-investment. This suggests that entrepreneurs learn over time that each VC is less unique and useful.
  • As Workers Protest, Wipro May Sell French Unit
    Wipro plans to explore options to sell its development centre at Sophia Antipolis, France, because of extensive employee protests against shutting it down. The issue had snowballed into a major controversy with the involvement of the local French government officials. Wipro had initiated talks to close down the centre that it acquired from Newlogic because of poor demand. The centre employs around 60 people.
  • Satyam to give promotions, hikes
    Seems hikes and promotion time is back in IT! After TCS and Infosys announcing their decision to go for selective hikes and promotions, Mahindra Satyam is all set to join its peers. According to a report in a business daily, the company is all set to soon start the promotions cycle in certain departments. Quoting a company official, the report says that employees identified as high performers will be given promotions and pay hikes.
  • Wipro signs co-development agreement with Oracle
    Under this agreement, Wipro and Oracle would co-develop process solutions for five different industries, communication, retail, consumer products, hi-tech and industrial manufacturing, Wipro said in a statement. “Many enterprises find themselves struggling to deliver and standardize business processes that span multiple applications cost effectively,” Oracle Vice-President Applications Development and Strategy Jose Lazares said. “Our co-development approach aims to involve selected partners like Wipro who have specific expertise and skills in industry specific business processes, to co-develop pre-built, integration products with us and then deploy these for customers,” he added. Wipro Technologies Sangita Singh Senior Vice-President said; “The co-development agreement is part of our continued strategy to invest in technology innovation and build deep industry expertise along with partners”.
  • Intel, IBM, Others Craft Speedy Servers for Cloud Computing
    Driven by the rapid adoption of server virtualization and the trend toward cloud computing, OEMs are rolling out systems designed to bring high performance, energy efficiency and relatively low cost to the data center. At the Intel Developer Forum in San Francisco, Intel executives continued their drumbeat of rolling out processor technologies designed to meet those goals, and took it a step further by not only saying they were looking to create a “microserver” category, but also by unveiling an Intel-developed microserver that will serve as a reference design. On the showroom floor at IDF, a host of OEMs displayed systems aimed at addressing the demands for high performance and low energy consumption.

Enterprise headlines and summaries, 2009-09-24

  • Microsoft aims to spark new business for Web developers
    Through WebsiteSpark — which companies can apply for online — Microsoft will provide three licenses for Visual Studio 2008 Professional Edition, two licenses for Expression Web 3 and one license for Expression Studio 3. Qualifying companies also receive four processor licenses for production use of both Windows Web Server 2008 and Microsoft SQL Server 2008 Web Edition. The program also includes two technical-support incidents per company, access to community support through connections with other Microsoft partners and unlimited access to technical managed newsgroups on the Microsoft Developer Network.
  • What will tech’s recovery look like: a U, V or W?
    IT managers see a 2010 budget environment that’s “less bad than this past year but not what it was, when things were good,” he said, referring to pre-recession spending. Luftman is a distinguished professor and director of information systems programs at the Stevens Institute of Technology in Hoboken, NJ. IT managers “are not sure whether it’s going to be U, V or W recovery,” he said. In responding to the recession, the portion of IT budgets allocated to hardware declined to 33% versus 42% in 2008. The portion of the budget devoted to internal staff increased, reflecting smaller budgets but also an effort to keep employees rather than buy new equipment. “Rather than layoff people, they cut equipment,” Luftman said. They also increased use of outsourcing services.
  • Red Hat Profit Rises 37%
    Uncertainty over the future of Sun may also be helping, Mr. Whitehurst said. Oracle agreed to buy Sun in April, but the deal is awaiting regulatory approval by European Commission antitrust authorities. Earlier this week, Oracle CEO Larry Ellison said that the delay is costing Oracle $100 million a month. For the quarter ended Aug. 31, Red Hat reported earnings of $28.9 million, or 15 cents a share, up from $21.1 million, or 10 cents a share, a year earlier. The company repurchased $47 million of common stock in the quarter. Excluding stock compensation and amortization expenses as well as a tax benefit in the latest quarter, earnings rose to 16 cents from 14 cents. Revenue improved 12%, to $183.6 million, as subscription revenue increased 15%. Nearly half of the company’s revenue is from outside the U.S.
  • Red Hat CEO vs. Torvalds: More Linux features don’t equate to bloat
    Linux has continued to grow and its applicability continues to expand, there’s just more feature functionality that people are looking for to be built into the operating system. I have not had a conversation with him about the comment. I don’t think of that as bloat. Certainly bloat is when you start adding feature functionalities that people don’t want, and certainly the nature of Linux where users are the key contributors, I do think Linux is growing but I think it is much more indicative of the fact that its’ continued added features that people do want and the key differentiator is it can continue to do that in a very modular way, so I actually look at the growth as much more of a reflection that it continues to add features that people do want, and that’s a good thing.
  • Oracle Fusion Middleware Security: “What is the point of all this?”
    Message level security introduces some additional complexity and effort, but is absolutely required to address many real-world use cases.
  • 5 Reasons ERP Vendors Will Find It Hard to Sell Their Talent Management
    # Legacy mindset – Talent Management is a rapidly evolving industry. The HRIS vendors are often restricted in their development to fit the paradigm of their existing products. This isn’t a good way to pursue a burgeoning industry. # Different buyers – the top executive might be the same buyer for both Talent Management technology and HRIS systems, but the influencers, users and often the decision makers at a lower level of the organization, are different. The strategic thinkers in the Talent Management divisions of companies are separating themselves from the more tactical, even though critically important, transactional folks.
  • ERP and CRM for One Attractive Price With SAP® Business All-in-One Solutions Through Best Run-Now Initiative
    Midsize companies that purchase an SAP® Business All-in-One solution or the enterprise resource planning (ERP) application SAP® ERP with at least 15 SAP application professional users and 15 SAP application limited professional users will also receive the SAP® Customer Relationship Management (SAP CRM) application for one attractive price. During this time of economic downturn, SAP is providing its customers a portfolio of integrated business management and business intelligence solutions through a limited-time special financing through the Best-Run Now initiative. The offerings have been designed to help enable customers to rapidly implement SAP solutions to help achieve effective results in the time they need it. This specific offering is available to qualified customers until December 18, 2009, and is only available to companies that sign a new license contract with SAP.
  • DemoFall ends with awards and emotional good-byes
    Earlier, Shipley gave out a series of Lifetime Achievement awards to tech luminaries like Palm co-founder Donna Dubinsky, Diane Greene, a co-founder of VMware, Better Place founder and CEO Shai Agassi, and (in absentia) Marc Benioff.
  • Executing a Broad, Innovative Idea
    In early 2007, Shane Robison, Hewlett-Packard’s (HPQ) executive vice-president and chief strategy and technology officer, gathered the seven chief technology officers from HP’s business units together. Robison, as a Compaq vice-president, had played a major role in the two companies’ controversial 2002 merger and the integration that followed. But when he summoned his division technology chiefs, he was focused on the future: What technologies were emerging, how would they shape the market, and what were the implications for HP?
  • Oracle Mulls Shift To Subscription-Based Pricing
    It’s on Safra’s desk. The calculator is out. Midmarket customers are clamoring for on-demand options, Keever said. No doubt, they’re probably getting calls from NetSuite, Workday, and other SaaS providers, saying we can lower your software costs and IT management responsibilities. Crunch, crunch, crunch go the numbers on Safra’s desk. I’m very curious to see what she comes up with.
  • Silicon Valley Code Camp Oct 3rd/4th: Oracle Track (Oracle Developer Tools Blog)
    Oracle Fusion Middleware Track In this track, you’ll learn about the Java and Web Service technologies used to develop Oracle Fusion Middleware. Java Web Applications and Java EE are covered in detail, from backend topics like JVM diagnostics, web services, security as a service, to development tools like JDeveloper and Eclipse, to “infrastructure-as-a-service” topics like cloud computing.

Software: Maintenance Revenue: High Margin or High Risk?

Excellent analysis today from Cowen and Co. analyst Peter Goldmacher. I can’t find it posted on their site (got it via e-mail), so I’m including the key extract below for those who might be interested. Enjoy!

Software: Maintenance Revenue: High Margin or High Risk?

Consensus View: Applications maintenance, fees for technical support and product update rights, is a $20B annual business with 80%+ margins. Maintenance revenue, which is approximately 50% of total sales for most apps vendors (Oracle, SAP, Lawson and Epicor), is a highly reliable, high margin, recurring revenue stream that provides earnings stability and enables margin expansion even if license sales falter. Companies with a high proportion of maintenance revenue should sell at premium PEs.

  • Our View: We believe that application software vendor maintenance fees are at risk. Our research indicates that companies continue to tighten their belts around IT spending, and ERP upgrades are not a priority. This is not a macro issue that we expect to diminish as the economy strengthens. We believe ERP upgrades, the primary motivation to pay maintenance fees, are on the wane because it’s a mature market. Vendor investments in R&D are on the decline, innovation is lagging and redeployment costs are multiples of the license fee. As a result, customers are increasingly questioning the value of paying annual maintenance fees of 20% of the cost of the original license for the occasional use of technical support. We believe that as the value proposition around maintenance fees diminishes, there is significant opportunity for third party service providers to offer low cost tech support. While there are only a small number of these third party providers today, we believe that as Apps sales continue to decline, there is a significant over capacity of consultants with ERP expertise looking for opportunities to leverage their skills. We believe these dynamics will result in the creation of a number of businesses designed to chip away at the exorbitant revenues and margins associated with vendor maintenance fees.

Enterprise headlines and summaries, 2009-09-23

  • The NetSuite Cloud Computing Seminar Series: The Business Cloud
    At this seminar, you’ll learn: * What the buzz around cloud computing is all about—and why it’s becoming a business priority * Why cloud computing is the more efficient, cheaper and greener way to reduce both IT costs and energy usage * How you can finally manage your multi-subsidiary and multinational operations in real time, gain local control and visibility, and simplify multi-currency financial consolidation * How real-time dashboards, analytics and continuous planning can give your company a competitive advantage.
  • Oracle Developer Builds His Own Twitter, On The Fly
    Noel Portugal, Oracle Senior Technical Analyst for CRM On Demand Operations, saw an opportunity to address this challenge, and used the Oracle Application Express web development platform to create OraTweet, an internal micro-blogging tool to encourage broad communication among Oracle employees. Think of it as Twitter, but operating only inside the company, allowing workers to post valuable information, ask questions, and debate issues with co-workers around the world who they may have never met. Now boasting more than 10,000 users, OraTweet has become a valuable tool within Oracle—and was built by one person using free Oracle software.
  • Only You Can Prevent Project Failure
    Asuret created a solution that collects information from stakeholders in different departments in the company as enterprise IT projects are company-wide initiatives that affect all departments and all people in the company. Asuret also collects information from the solution providers (consultants or integrators) and vendors if any of them are involved in the project. Using an electronic questionnaire that takes about 15-20 minutes to get through and all questions are multiple choice. This questionnaire has some “demographics” information (such as department, job function) but it also has thresholds built in to prevent an answer to become identifiable. In other words, this is all very confidential and results are only shared with the appropriate people in an anonymous manner.
  • A year on, Satyam has 50% fewer staff
    Nearly one year after Satyam Computer Services prepared its second-quarter results in 2008, the number of employees at the crisis-hit company (now, Mahindra Satyam) is put at 28,000, including 4,000 in subsidiaries.
  • HP And Informatica Expand Alliance
    “HP and Informatica have provided data integration solutions for more than 10 years,” said Sohaib Abbasi, Chairman and CEO, Informatica. “The new combined offerings will allow organizations to derive business value from their information assets while improving quality and IT efficiency,” he added.
  • NetSuite Executives Step Up Stock Sales
    Insiders at NetSuite have been busy sellers of late, unloading $3.3 million of stock in September, roughly 10 times the amount insiders at the software company had been selling in an average month.
  • Microsoft Data Center Exec Bolts To Cisco
    Debra Chrapaty, who ran Microsoft’s data center operations, is set to assume command of Cisco’s collaboration software group, according to a report on InformationWeek.com sister site ChannelWeb. The report was confirmed by Microsoft. Cisco has not commented.
  • California ‘In-Shoring’ Firm Systems in Motion to Hire in Michigan
    The Fremont, Calif., company calls itself an “in-shoring” provider, meaning it takes on IT projects for clients but does the work on American soil. Its chief executive, Neeraj Gupta, told the Detroit Free Press that it will kick off a training program for new and career-changing workers and expects to pay $30,000 to $80,000 for most of the positions, which it will hire over the next five years.
  • Warren Buffet, Oracle and SAP – Part Two
    # SAP has almost 5 percentage points higher ROE compared to Oracle (27.32% vs 22.43%). # However, as we discussed in part one, ROE could be misleading. We need to focus on the operational part – RNOA. Well, SAP has almost 6 percentage points advantage over Oracle ( 24.59 % vs 18.60%). In other words, operationally SAP is doing a good job of converting it’s operational assets into profit. Furthermore, for SAP, the non-operation return constitues only approx. 10% of the entire ROE versus 17% for oracle. # What about the non-operatinal (financial) part? Oracle has 1.1% advantage over SAP ( 3.83% vs 2.73%). Oracle CFO is definitely doing a slightly better job in his investments. # As we discussed, SPREAD is the difference between returns from borrowed funds and cost of borrowing. SAP has spread of 20.62% vs 13.00% for Oracle. Two reasons for SAP having higher spread: 1) SAP has higher RNOA as noted in #2 above and at the same time, effective rate of borrowing (net financial rate
  • Larry Ellison is right, but wrong, about the cloud
    Ellison’s cloud rhetoric is powerful because it is factual. There are very few new technical features in cloud computing. It is computers, memory, DBMS all running on standard networks.
  • HP renames EDS, now HP Enterprise Services
    “The name change marks the next major step in a year-long integration of EDS into HP and emphasizes the growing global role of enterprise technology services in HP’s portfolio,” HP said in a statement. HP also said its Technology Solutions Group, responsible for servers, storage, software, networking and technology services for businesses and government organizations, will be renamed the HP Enterprise Business.
  • Why Microsoft’s Elop Isn’t Afraid of Google
    Dynamics CRM — customer relationship management. We may be contracting as an industry in a particular business, but you say, “I have to get closer to my customer, I have to manage every lead for a sales opportunity tighter than I did before.” So it’s growing very substantially as well.
  • Over-Dressed for Oracle OpenWorld
    [Not sure whether to tag this as “humor” or not-DBM] Today, we kick off our new video series Over-Dressed for Oracle OpenWorld, highlighting the antics of a misguided conference attendee who favors style over substance.

Enterprise headlines and summaries, 2009-09-22

  • Seed Stage Capital: The Care and Feeding of Advisory Boards
    There is no real trick to recruiting advisors– you simply ask them. Most people are flattered by the request and by the lure of being associated with a new successful company. It’s a soft sell, and taps the ego-drive for recognition as an expert.
  • Microsoft Buys Software to Bolster Its Core ERP Product
    Microsoft is buying technology from four of its partners in order to bolster its Dynamics AX ERP… Microsoft is buying additional functionality for manufacturing from Fullscope, a company that specializes in customizing Microsoft’s Dynamics AX product, which is aimed at the upper midmarket, Read said. The technology will add a capability for manufacturing processes that don’t deal with discrete components, such as formulas for food and chemical products, he said. The technology for retail comes from two companies, LSRetail and To-Increase Denmark. It will add new features for retailers, but not functions tailored for a certain type of retailer, such as restaurant or fashion house, Read said. Some of those features cover store management, point-of-sale and merchandising. The last bit of software for professional services comes from Computer Generated Solutions. It is a system for managing resources, executing financial transactions and billing customers.
  • Reality check
    Business intelligence and analytics are in demand again as organisations hunt for insight by which to navigate adverse economic conditions
  • Microsoft Dynamics AX Acquires IP For Three Industry Solutions
    Building off the experiences from Industry Builders Initiative (IBI) and Certified for Microsoft Dynamics (CfMD), the latest strategy by the Microsoft Dynamics team to accelerate industry vertical innovation for customers and partners provides a pragmatic approach. Customers expect Microsoft to take the lead in orchestrating common industry capabilities while also providing a stable platform for core Microsoft Dynamics AX capabilities. Acquiring the IP of proven solutions in the market plays to Microsoft’s strengths by leveraging the ecosystem for innovation while embedding key common business processes. The result – a more predictable roadmap and a single architecture for customers and partners to expand on. Pending the success of these IP acquisitions, one can expect more to come as this becomes the model to most efficiently deliver on industry vertical innovation.
  • MrTed Signs Massive Talent Acquisition Software Contract with Chinese Government
    MrTed Ltd, the global leader in Talent Acquisition Solutions, today announced it has signed a major contract with the Chinese Talent Association (CTA) of China’s Ministry of Human Resources and Social Security (MOHRSS) to build up a nationwide online Talent Acquisition System (TAS) and develop value-added services to help companies throughout the country improve the process by which they attract and hire the right talent, and help millions of talents in China to find the right job.
  • Oracle CEO Larry Ellison: We Won’t Spin Off MySQL
    “Sun has fantastic technology. We think it’s got great microprocessor technology–it needs a little more investment, but we think it can be extremely competitive. It’s got the leading tape archival systems. We think the Open Storage on their new disk system is absolutely fantastic. Java speaks for itself. Solaris is overwhelmingly the best open-systems operating system on the planet….Sun has been a national treasure for the last couple of decades.”
  • IBM, Microsoft Back Zend Open Cloud API
    The Simple API is intended to provide a common API set from which developers may call application services, regardless of which cloud they reside in. Files generated by an application running in one cloud could be stored on Amazon’s S3, Rackspace’s Cloud Files, Nirvanix Storage Delivery Network, or Microsoft’s Azure Windows blobs. Rackspace and Nirvanix are also members of the project.
  • Lotus goes after Microsoft’s ‘ridiculous and fabricated’ figures
    “Microsoft is making claims in the marketplace around 4.7 million people have exchanged e-mail from Notes to Exchange and that is just a ridiculous fabricated figure,” said Picciano, who took the reins at Lotus in 2008. “Every time they sell a [client access license] they count that as a competitive migration.”
  • Using the Cloud to Design Your Startup Computing Infrastructure
    AWS is going to make this much easier and much more cost effective for us, if this was 5 years ago, our initial startup seed money of 15K would have been sucked up by servers alone with no money left over for development. If you are doing a startup and you are not using cloud computing, you are seriously missing an opportunity to save money, and have the room to scale later on if your company catches with the general public.
  • 20 Things You Might Not Know About COBOL (as the Language Turns 50)
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