News and Analysis to 3rd February 2006
AMD Chips market share
The landscape appears to be changing in the chip
marketplace. AMD has reversed its quarter on quarter loss with a 45% growth in
revenue, which surprised both analysts and AMD. Conversely Intel disappointed
the analysts with its lower than expected results. Intel conceded that AMD had
taken some of its market share. There will certainly be some blue faces at
Intel HQ.
Zombie leader faces prison
A 20-year old hacker in San Francisco pleaded guilty to
commandeering hundreds of thousands of PCs for the purpose of launching denial
of service attacks on websites and for launching spam. PCs used in this way are
known as zombies. Jeanson Ancheta allegedly provided this zombie service to
fraudsters and extortionists. It would be a nice touch if all those people
whose PCs were commandeered were invited to show clemency and to each send him
an email to wish him the best of luck in respect of his sentencing; ideally at
the same time.
Bond to the rescue?
Vodafone’s global Pacman strategy is starting to eat into
the network operator’s market value. High profile investors including Standard
Life are calling for Vodafone to abandon the US, and sell off its Verizon
acquisition. Other shareholders have expressed a lack of confidence in the
senior management. Interestingly the chairman of HSBC bank, Sir John Bond, is
set to retire in May. After a few months doing wheelies across the US on his
motorbike, he is to become chairman of Vodafone (though traditionally isn’t
gardening a more appropriate retirement pursuit?). So will Bond be the man that
saves Vodafone from collapsing in on its own strategy?
Dell PCs – Intel outside?
Rumours abound that Dell is to ship computers containing
chips from Intel’s archrivals AMD. Both chairman Michael Dell and CEO Kevin
Rollins have alluded to this possibility. Is this likely to happen or is Dell
just positioning itself to demand keener pricing from Intel in the next wave of
chip purchases?
Blackberrrry
RIM the creator of the Blackberry has announced that it will
make Google’s instant messaging and local search services available on the hand
held device. The latter service is potentially impressive. Being able to search
for local services and view maps and satellite images will be of value to
consumers on the move, whether they be on foot, in a car or in a spaceship. If
NTP wins its patent case this service will not be available in the US. Neither
will the Blackberry device.
The French say “Non” to offshoring
According to the French National Association of IT Service s
Companies (Syntec), the French have shunned offshore outsourcing. Current
estimates lie at about 2% of revenue, with likely growth of up to just 5% by
2009. Strong employment laws coupled with language and cultural differences
appear to be underlying cause. It will be interesting to see how France reacts
as the pressure to use cheaper third parties increases. Will IT staff be the
new farmers? Will this end with motorway slip roads blocked by AS/400s with
system administrators facing off riot police.
That’s entertainment
Microsoft pleased the market with 5% second quarter profit
growth, quarter on quarter. Revenues failed by a nose to live up to analyst
expectations. Whilst the Xbox 360 delivered strong sales, the Home and
Entertainment division (which includes the Xbox) made a $239m loss (against
$55m earnings last year). Oddly the Xbox is the problem. Microsoft sells the
gaming device at a loss, so the more it sells the greater the loss. Playing
this game requires very deep pockets.
