by: Preston Gralla Tuesday, 24 February 2009
When Microsoft laid off 5,000 people in January, analysts and pundits pointed to plenty of reasons for the first major layoffs in the company’s history. The obvious culprits included the overall economic meltdown, Apple’s continued success and Wall Street’s desire to see a leaner Microsoft. But the real cause of the layoffs can be summed up in a single word: netbooks. These lightweight, stripped-down laptops that sell for between $200 and $400 have taken a big chunk out of Microsoft’s bottom line. Unless the company comes up with a plan to handle them, its revenue will stagnate. In announcing the layoffs, Microsoft said that its revenue had increased an anemic 1.6 per cent in the quarter that ended 31 December compared to the same quarter a year earlier. But that number doesn’t tell the whole story. Windows took the biggest hit, while systems for servers and related tools had hefty increases in sales. Windows sales were down an eye-popping 8 percent; server and related revenue grew 15 per cent. Microsoft clearly blames netbooks for the drop in Windows sales. Here’s what it said in its statement: “Client revenue declined 8 per cent as a result of PC market weakness and a continued shift to lower priced netbooks.” Netbooks have become the only bright spot for PC makers, with sales accelerating while the rest of the PC market stays in the doldrums.
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Tuesday, February 24, 2009
Marvell's $99 Computer Is Also A Plug
by Mark Hachman 02.24.09
For users who have always wondered what good an electronic device's so-called "power brick" is, Marvell has an answer: why not build a computer in it? On Tuesday, Marvell introduced what it refers to as "plug computing": putting an entire computer in the space taken up by a "wall wart" or other power transformer. The company's SheevaPlug development kit envisions a bill of materials that could place a small, Linux-powered computer in a tiny, compact space. Designed to pull just a tenth of the power of a PC, the SheevaPlug concept is built around a 1.2GHz Marvell Sheeva ARM-compatible CPU equipped with 512 Mbytes of flash memory and 512 Mbytes of DRAM. The small computer would talk to the network via an embedded Ethernet port, and connect to peripherals via a USB 2.0 connector. "There is no doubt that home networks need to become more intelligent and easier to use by offering value added services for the consumer," said Simon Milner, vice president and general manager of the Enterprise Business Unit, Consumer and Communications Business Group at Marvell Semiconductor, in a statement. "We have created an open computing platform for developers in a consumer and eco-friendly form factor.
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For users who have always wondered what good an electronic device's so-called "power brick" is, Marvell has an answer: why not build a computer in it? On Tuesday, Marvell introduced what it refers to as "plug computing": putting an entire computer in the space taken up by a "wall wart" or other power transformer. The company's SheevaPlug development kit envisions a bill of materials that could place a small, Linux-powered computer in a tiny, compact space. Designed to pull just a tenth of the power of a PC, the SheevaPlug concept is built around a 1.2GHz Marvell Sheeva ARM-compatible CPU equipped with 512 Mbytes of flash memory and 512 Mbytes of DRAM. The small computer would talk to the network via an embedded Ethernet port, and connect to peripherals via a USB 2.0 connector. "There is no doubt that home networks need to become more intelligent and easier to use by offering value added services for the consumer," said Simon Milner, vice president and general manager of the Enterprise Business Unit, Consumer and Communications Business Group at Marvell Semiconductor, in a statement. "We have created an open computing platform for developers in a consumer and eco-friendly form factor.
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Microsoft reaffirms grim outlook for year
By Jessica Mintz Feb 24, 2009
Microsoft Corp. reiterated its belief that the economic crisis will persist at least into the second half of 2009 but attempted to reassure analysts Tuesday that it will continue to cut costs and spend wisely. Microsoft shares fell 3 percent in midday trading. Speaking at a meeting in New York, Chief Executive Officer Steve Ballmer said Microsoft is looking to the television maker RCA as a role model. RCA spent money on research and development through the Great Depression, then dominated its market, he said. Ballmer pointed to areas of Microsoft's business that will be hit hardest by the downturn and sketched out the products and projects that will get the bulk of the company's $27.5 billion in annual operating expenses.
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Microsoft Corp. reiterated its belief that the economic crisis will persist at least into the second half of 2009 but attempted to reassure analysts Tuesday that it will continue to cut costs and spend wisely. Microsoft shares fell 3 percent in midday trading. Speaking at a meeting in New York, Chief Executive Officer Steve Ballmer said Microsoft is looking to the television maker RCA as a role model. RCA spent money on research and development through the Great Depression, then dominated its market, he said. Ballmer pointed to areas of Microsoft's business that will be hit hardest by the downturn and sketched out the products and projects that will get the bulk of the company's $27.5 billion in annual operating expenses.
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