News and Analysis to 13th August 2003
News in summary
Hardware
q
HP launches new consumer products
q
Apple making inroads into server market
q
Cisco disappoints
Software
q
Open source market in turmoil
q
Microsoft feeling EC heat
Services
q
HP eyeing up CGE&Y
News in Detail
Open warfare
The open
source movement is in a high state of flux now that SCO Group has started
to dispatch invoices to Linux users /developers, claiming that the open source
operating system infringes SCO’s Unix code. Its $3bn claim against IBM has been
met with a counterclaim. Red Hat a Linux vendor has also filed an action to
force SCO to detail what aspects of its code have been infringed. SCO’s PR
people are no doubt cringing at the heavy-handed approach being taken. There is
no hint of acting in the best interests of the customer. Either SCO is planning
to become a technology patent office, or it has an agenda to destroy the open
source movement.
HP goes funky
HP has just unleashed circa 100 new products aimed at the
consumer market. Seemingly following in the footsteps of trendy Apple, HP has
focused on multimedia gadgets and tools. HP needs to give serious thought as to
whether it wants to be the next IBM or the next Apple.
Apple gets defensive
Even Apple recognises the problem of ending up like Apple,
and has thus extended its capabilities into the server marketplace. Unlike
Apple’s desktop customers, it is very unlikely that the purchasers of Apple
servers would base their buying criteria on interior décor compatibility. That
said Apple servers are underpinning a real-time sonar imaging solution for the
US Navy. This is the largest Apple server sale to date. NB. It is running
Yellow Dog, Apple’s version of Linux.
Clearly the US Navy is not fazed by SCO’s activities.
Microsoft - feeling fine
The European Commission’s inquiry into the competitive
behaviour of Microsoft is drawing to a close.
Microsoft is looking at a $3.2bn fine if found guilty of abusing its
dominant position in the European IT market. The EC alleges that the software
giant is being uncompetitive. One example cited is that Microsoft, by bundling
Windows Media Player into its Windows operating system, is putting other media
player vendors at a disadvantage. Microsoft has been given an opportunity to
respond to these allegations. If the past is anything to go by, it is likely
that Microsoft will actually get a paltry fine and in a year’s time Microsoft
Office will be bundled into Windows.
HPCGE&Y?
Rumours abound that HP has its sights set on IT services
company CGE&Y. This looks like a
good move as CGE&Y (or Cap Gemini as it was then) is still reeling from
buying Ernst and Young Consulting at the top of the market. HP needs to bolster
its offerings at the solution end of the market. Maybe it could stimulate sales
by offering a free digital camera for the first 100 customers to sign $1bn plus
outsourcing contracts.
Cisco cautious
Everybody so desperately wants good news. Internet plumbing
market leader Cisco has been getting in the news of late for all the right
reasons. Thus analysts were fired up to
expect Cisco’s latest quarterly results to come in well above expectations.
Unfortunately Cisco simply met expectations, which implies that a recovery is
still far from certain, causing it shares to drop. Given Cisco’s size this is
significant news for the Tech Sector.
