AllThingsD » HP

Can’t Buy Me Love … But You Can Buy Me Gadgets

Lauren Goode — Wed, 08 Feb 2012 20:54:58 +0000

When Valentine’s Day rolls around, some people think roses, chocolate, Words With Friends by candlelight and Forza Motorsport 4 marathons.

Others think (non-iPad) tablets and daily deals.

According to new consumer data from PriceGrabber.com, topping the list of electronically-oriented Valentine’s Day gifts purchased over the past couple days are the HP Slate 500 tablet — remember that one? — and the Asus Eee Pad Transformer TF 101 tablet. The results, which will be released in full later today, are based on merchant referrals through PriceGrabber, a Kayak-like, Experian-owned site for comparative shopping.

Also in PriceGrabber’s Valentine’s Top 3: A 55-inch 3-D LED TV from Samsung; with a price range of $1,995 to $3,528, this love offering is probably best for someone you’re truly committed to.

This latest report only factors in purchases made on Monday and Tuesday of this week. Over the weekend, Apple’s 64 gigabyte iPhone 4S was one of the most popular purchases, alongside that big Samsung TV.

The shopping survey also indicates that the daily deals sector might get some love this year, with 42 percent of shoppers saying they plan to use an offer from Groupon or LivingSocial for purchasing gifts.

In my own inbox, I’ve gotten some pretty interesting deal offers over the past few weeks — including (but not limited to) his-and-hers massages, half-off flower bouquets, and a “bargain”-priced private dinner at Le Cirque (no sign yet of last year’s shooting-range deal for Valentine’s Day).

Despite the lean toward coupons — and in spite lingering economic woes — the majority of U.S. consumers plan to spend the same amount on this Valentine’s Day as they did last Feb. 14, according to PriceGrabber’s report.

(Image credit: Harle/Flickr)

AMD Sales Chief Ghilardi Leaves

Arik Hesseldahl — Tue, 07 Feb 2012 22:34:07 +0000

The perplexing reconstruction of chipmaker Advanced Micro Devices continued today with the departure of its chief sales officer, Emilio Ghilardi.

The company announced the departure just after the close of trading on the New York Stock Exchange. CEO Rory Read will handle Ghilardi’s sales responsibilities in the interim while the search for a replacement gets underway.

Ghilardi (pictured) joined AMD in 2008 as senior VP and general manager for Europe, Middle East and Africa. The following year, he was promoted to chief sales officer.

Before AMD, he worked in Hewlett-Packard’s consumer group, running sales operations of PCs and printers in the EMEA region. And before that, he did the same thing for HP’s commercial business, also in EMEA. He joined HP in 1982, and served on the board of directors of HP Italy (I didn’t know there was such a thing!) from 2001 to 2008. Ghilardi holds a master’s degree in electronic engineering from Italy’s Politecnico di Torino.

It’s hard to know what kind of signal this move is intended to send for AMD. Last week, in a meeting with financial analysts, Read confounded the audience with statements that AMD — whose chips are fundamentally similar to those of Intel and use the same x86 technology — might pursue an “ambidextrous” strategy and incorporate technology used in chips from other companies. This has generally been interpreted as a hint that AMD might incorporate designs from the British chip outfit ARM Holdings in some future hybrid design.

ARM-based chips, as you probably know, are in most of the world’s smartphones and tablets, and for AMD to embrace that technology would be a huge shift in strategic thinking. And by huge, I mean Republicans-embracing-Socialism huge. It wasn’t so long ago that AMD was actively sponsoring a campaign to get x86 chips everywhere, including phones, though it obviously hasn’t worked out that way.

Since then, Read hasn’t really elaborated on what he meant, other than to say that future AMD chips might have a modular design that would allow bits of other types of chips, including an ARM core, to be added. Clearly some big changes are afoot at AMD.

AMD’s statement on the departure is below:

AMD Announces Departure of Emilio Ghilardi as Senior Vice President and Chief Sales Officer

AMD President and CEO Rory Read to Serve as Interim Chief Sales Officer

SUNNYVALE, CA–(Marketwire -02/07/12)- AMD (NYSE: AMD – News) today announced the departure of Emilio Ghilardi as senior vice president and chief sales officer, effective immediately. Rory Read, AMD president and chief executive officer, will serve as interim chief sales officer while the company actively seeks a replacement.

“I’d like to thank Emilio for his contributions to the business and wish him well in his future endeavors,” said Read. “Developing relationships with our customers that are grounded in a foundation of trust through consistently delivering on our commitments is critical, and we are making progress toward that goal. AMD enters 2012 with significant momentum, and we are building upon that momentum by embracing the shifts occurring in the industry and marrying market needs with innovative technologies to become a consistent growth engine.”

Mr. Ghilardi joined AMD from Hewlett Packard in 2008.

Oracle to Court: Let's Try SAP Again

Arik Hesseldahl — Tue, 07 Feb 2012 09:50:41 +0000

Here we go again. It looks like one of the ugliest trials in the history of the software industry is about to repeat itself.

Last year, the judge offered Oracle a choice: Accept a judgment of $272 million in damages, reduced from $1.3 billion awarded at trial, or seek a new trial. Oracle says in court filings that it wants a new trial.

The key passage of the two-page court filing reads as follows (the word “remittitur” refers to the judge’s previous order reducing the award):

Oracle has no choice but to elect a new trial, as accepting the remittitur would force Oracle to risk waiving its right to appeal the Court’s decision on the motions for judgment as a matter of law and for a new trial. Oracle’s objective is to obtain clarification of the law and, if it is right about what the law is and what the evidence supports in this case, to vindicate the verdict of the jury and Oracle’s intellectual property rights as a copyright owner. Accepting the remittitur would be contrary to this objective.

And that means that the whole thing starts over again.

Calling the $1.3 billion award “grossly excessive,” U.S. District Court Judge Phyllis Hamilton in February granted an SAP request to throw out the award. Hamilton said that Oracle never proved that it lost enough business to justify so large a judgment.

Oracle had won the award in November, after accusing SAP’s now-shuttered TomorrowNow unit of copying its software without paying appropriate licensing fees. It had been the largest judgment ever in a copyright infringement case.

At trial, Oracle accused SAP’s now-shuttered TomorrowNow business unit of illegally downloading Oracle software and then making several thousand copies of it, in order to avoid paying the relevant license fees that are Oracle’s financial bread and butter. Oracle ultimately won the claim, but then the fight turned to damages.

Lawyers for Oracle had argued that the company’s damages should be tied to the value of a hypothetical license that TomorrowNow would have had to pay for the software, had it been properly licensed. For its part, SAP had argued that, as competitors, damages should have been calculated based on profits lost by Oracle and gained by SAP as a result of the infringement, and as such is in a much lower range than what Oracle argued for.

The case has caused a lot of personal enmity between Oracle and SAP, as well as with Hewlett-Packard, especially during the 11-month period when former SAP co-CEO Léo Apotheker was CEO of HP. Apotheker’s first days on the job at HP were marred by his apparent absence from HP headquarters, in what couldn’t help but look like an attempt to avoid being served with a subpoena. Maybe Oracle will try again.

HP CEO Whitman Earned One Dollar Plus $16 Million in 2011

Arik Hesseldahl — Fri, 03 Feb 2012 15:27:02 +0000

Hewlett-Packard released its annual proxy statement this morning, which, among other things, gives a look at what its top five executives made last year. Here’s the rundown:

CEO Meg Whitman, who upon becoming CEO agreed to take an annual base salary of $1, received more than $16 million worth of stock awards. Add on another $372,598 in other compensation, and the total value of her package was north of $16.5 million. Much of that other compensation stemmed from the period when Whitman was a director on HP’s board, and before she was CEO.

Under her employment contract, Whitman received an option to purchase 1.9 million shares of HP stock at a strike price equal to the value of the share price on the date of the grant, and subject to vesting requirements over time. As of today, 1.9 million shares would be worth almost $55 million. Whitman, the filing says, was the only one among the company’s named executive officers to receive an options award during 2011.

The filing also shows that CFO Cathie Lesjak made a base salary of $825,000, plus $9.3 million in stock-based compensation, $679,000 in incentive pay and $101,500 in other compensation, for a total of more than $11 million.

Todd Bradley, executive vice president and head of the Personal Systems Group, the division that HP briefly considered spinning out last year, made a base salary of $850,000, plus $9.3 million in stock-based compensation. He received $464,457 in incentive pay, plus $105,000 in other compensation, for a total just shy of $10.7 million.

Vyomesh “VJ” Joshi, the executive president and head of the Imaging and Printing Group, got an $850,000 salary, too, and nearly $8 million in stock awards, plus $638,355 in incentive pay, for a total of $9.8 million.

Shane Robison, the former chief strategy officer who retired last year, received a base salary of $781,250, plus stock awards worth $7.6 million and $606,506 in incentive pay, for a total of $9 million.

Finally, we have a full accounting of what former CEO Léo Apotheker made for his 11 months of service at HP’s helm. The full amount was $30.4 million. The precise amount had been the subject of some guesswork based on less-than-complete HP filings made around the time of Apotheker’s departure. The filings netted for HP a dubious award for “Worst Footnote of the Year” over at Morningstar’s Footnoted blog. My best guess had been in the $28 million to $33 million range.

Apotheker’s compensation breaks down like so:

$1,152,770 in base salary.
A $6.4 million bonus, of which $4 million was a signing bonus when he joined HP, and $2.4 million paid under the terms of his separation agreement.
Stock awards worth $17,660,759.
$5.2 million in “other compensation.” Within that was $2.9 million in relocation expenses related to Apotheker’s move from France to California and back; $1.7 million in “miscellaneous,” the majority of which, as explained in a footnote, was a “reimbursement for foregone non-competition payments that would have otherwise been payable by his former employer,” which refers to the software company SAP, where Apotheker was co-CEO.
Another $25,000 representing his personal use of HP aircraft.

Dell Taps Former CA Head Swainson to Run Software Unit

Arik Hesseldahl — Thu, 02 Feb 2012 21:14:41 +0000

Dell today announced that it had hired John Swainson, the former CEO of Computer Associates, as president of its new software group. He will report to CEO and founder Michael Dell.

He’d also been heavily recruited. Sources familiar with the situation told me that Swainson had been in line for a very senior and nearly identical job at Hewlett-Packard. Swainson didn’t return my call seeking comment, and spokesmen for HP and Dell declined to comment, as well.

Dell is launching the Software Group, it said in a statement, to build out its muscle on the software side as a complement to its overall mission of selling IT services.

And there’s probably no one better to do it than Swainson. Since 2009 he’s been an adviser at private equity firm Silver Lake Partners. But from 2004 to 2009 he ran CA with one single goal in mind: Rebuilding its reputation following an accounting scandal that ended when its prior CEO, Sanjay Kumar, was sentenced to 12 years in prison. The company paid $225 million to settle federal charges brought by the Securities and Exchange Commission and the Department of Justice.

But before CA, Swainson had spent 26 years at IBM. Among the things he did at Big Blue was spend seven years as general manager of its Application Integration Middleware division, which was a business he created. It was during those years that IBM launched its WebSphere family of products.

So that leaves just one question: Who’s going to run the HP software division that it had wanted Swainson to run?

Yet Another Departure From HP's webOS Business

Arik Hesseldahl — Tue, 31 Jan 2012 17:51:56 +0000

On the heels of word that former Palm CEO and Hewlett-Packard webOS head Jon Rubinstein was headed for the door, there’s word of yet another executive departure from HP’s webOS business unit. The Verge reported today that Brian Hernacki, the chief architect of webOS, has bolted.

Hernacki had joined Palm in 2009 as its chief security architect, before it was acquired by HP in a $1.2 billion deal the following year. Previously, he’d spent nearly seven years at Symantec, where he was a researcher and architect.

His departure follows not only that of Rubinstein, but of Richard Kerris, the former head of webOS developer relations, who decamped for Nokia in October.

Coming as these moves do after HP’s decision to turn webOS into an open source project, one suspects they aren’t the last.

Filing: Without Itanium Chip, HP Is "Strategically Screwed"

Arik Hesseldahl — Tue, 31 Jan 2012 15:00:45 +0000

Last night, a California judge made some key rulings in the ongoing litigation between Hewlett-Packard and Oracle over the latter’s decision to stop supporting Intel’s Itanium chip.

One thing Judge James Kleinberg did was dismiss a fraud claim by Oracle that said HP had been all sneaky when it concluded a settlement with Oracle that included an agreement to continue building software for systems using the Itanium chip. The settlement was struck only a few weeks before HP hired Léo Apotheker as its CEO and Ray Lane as its chairman.

But that’s not the important part of what Judge Kleinberg did. The most important aspect of yesterday’s action in Hewlett-Packard v. Oracle was the release of the unredacted version of Oracle’s cross-complaint. And it’s a juicy read.

I’ve posted the redacted version before. Now you can read all the bits that were blacked out.

What you’ll find is a lot of information that goes to the core of Oracle’s argument that HP has a lot to lose if the Itanium chip goes end of life, which is exactly what Oracle has said Intel plans to do. As the only major server vendor who sells boxes running Itanium chips, HP makes a lot of money — billions of dollars, according to a newly unredacted statement in the filing — on service-and-support contracts with its Itanium customers. As one HP executive is quoted on page four of the filing, without Itanium, HP would be “strategically screwed.”

Intel, on the other hand, was more or less ready to let the chip die. Having spent billions, dating back to 1989, to develop the Itanium chip, which outside of HP never saw any market success, Intel had to be convinced to keep building them. To do that, HP, the filing reads, paid Intel $440 million to keep Itanium chips in production for a few more generations, through 2014. The deal didn’t even cover the cost of the chips, as HP had to pay for them, as well, the filing reads. Oracle calls the arrangement a “pure pay-off to induce Intel to keep churning out processors that it really wanted to kill.”

And while there’s nothing specifically wrong with the arrangement by itself, Oracle’s point is that HP was misleading the marketplace about the true status of the keystone product in its Business Critical Service business. That unit, in no small part because of the uncertainty wrought by this lawsuit, saw its sales fall by 23 percent in HP’s most recent quarter.

Having won the release of the unredacted complaint, Oracle claimed something of a victory in a statement:

“Oracle is delighted that the Superior Court of the State of California, Santa Clara County, has rejected HP’s attempt to hide the truth about Itanium’s certain end of life from its customers, partners and own employees. We look forward to seeing all of the facts made public that demonstrate how HP has known for years that Itanium is end of life.”

It all sounds very reasonable, until you take into account the fact that Oracle acquired Sun Microsystems in 2010 and is now a big server vendor that competes with HP, and would by no real stretch of argument benefit from an exodus of HP’s Itanium customers toward other vendors. HP called the decision by Oracle to cease support for Itanium part of a “calculated business strategy” to mess up HP’s Itanium business and capture those customers. Yet the evidence so far suggests that the one benefiting from this fight is actually IBM.

HP claimed victory of its own, in a statement:

“HP is pleased that the Superior Court of the State of California, Santa Clara County, has rejected Oracle’s attempt to use a fraud claim to undo its contract with HP. We look forward to seeing the facts made public that demonstrate how Oracle’s March 2011 announcement to no longer develop software for Itanium servers was part of a calculated business strategy to drive hardware sales from Itanium to inferior Sun servers. This further demonstrates the fact that Oracle breached its contractual commitment to HP and ignored its repeated promises of support to our shared customers.”

HP has portrayed itself as the defender of the interests of Itanium customers, under attack by Oracle. As HP puts it in its statement, Oracle tried to induce customers running Oracle software on HP Itanium systems into replacing that hardware by limiting support and withholding software patches and bug fixes. “Customers were left without options to address bugs and other defects in their Oracle software,” HP says.

For HP, this is all a simple argument over whether or not Oracle can be held to the contract they agreed to in 2010.

The agreement stems from the circumstances of former HP CEO Mark Hurd’s resignation, and his subsequent hiring by Oracle as its president. HP sued Hurd and Oracle, and soon they settled. HP says that a clause in that settlement included a provision that Oracle would continue to port its database software to HP servers running the Itanium chip. Oracle has argued that this clause is not part of the final agreement. The settlement document itself remains confidential, but its details will likely emerge in the trial. Expect lots of arguing over different versions of the agreement.

I have embedded two documents below, for your reading pleasure. The first is Oracle’s unredacted cross-complaint, with all the blacked-out bits from the previous version now fully revealed for the world to see. Below that is a Case Management Conference Statement filed by HP lawyers, also unredacted, where it seeks to expose Oracle as making cold-blooded moves that would appear to be attempts to spur Oracle’s own software customers to abandon HP hardware. It’s not quite as juicy as Oracle’s document, but it has its moments, too. Enjoy them both:

HP v Oracle – Amended Cross Complaint

0077a 2011121 Hp Cmc Stmnt Unredacted

Another Director Out at Hewlett-Packard: It's Lawrence Babbio

Arik Hesseldahl — Mon, 30 Jan 2012 21:16:39 +0000

Hewlett-Packard just filed a notification with the U.S. Securities and Exchange Commission that another director is not standing for reelection. This time it’s Lawrence Babbio, the former president and vice-chairman of Verizon, who is also an adviser to the private equity fund Warburg Pincus.

This makes the second director to leave HP in as many weeks.

HP’s statement from the filing, in full:

On January 24, 2012, Lawrence T. Babbio, Jr. notified the Board of Directors of Hewlett-Packard Company (“HP”) that he will not stand for re-election at the next annual meeting of stockholders. Mr. Babbio will continue to serve as a director of HP until HP’s next annual meeting of stockholders, which is scheduled to be held on March 21, 2012.

Ten days ago, it was Sari Baldauf, a former Nokia networks executive, who said she would not stand for reelection.

Babbio (pictured at right) and Baldauf were both targeted last year by shareholder activist groups like Institutional Shareholder Services and Glass Lewis, who urged shareholders to vote against their reelection to HP’s board. Their concern was that HP’s board seemed too chummy.

ISS argued at the time that Babbio was the only member of the board’s Nominating and Governance Committee to participate in the discussions of what it called an “ad hoc committee” that brought five new directors to HP’s board during the 11 months that Léo Apotheker was CEO. Among those new directors brought on: Current CEO Meg Whitman and former Alcatel-Lucent CEO Patricia Russo.

In its report, Glass Lewis had urged shareholders to withhold a vote for Babbio — and had done so in 2007 and 2009, as well — saying that as chairman of the board’s HR and compensation committee, he hadn’t worked hard enough to link performance to pay. According to the Glass Lewis analysis, HP paid its executives more than the median of 33 other similarly sized companies. “Overall the company paid more than its peers, but performed moderately worse than its peers,” it said. On executive pay, Glass Lewis gave HP a “D” on a scale of A to F.

Now, the bigger question is: Who will be nominated to replace them? HP’s shareholder meeting is seven weeks away.

Rubinstein Interview: With webOS Transition Under Way, It Was Time to Leave HP

John Paczkowski — Fri, 27 Jan 2012 18:22:27 +0000

Asa Mathat | AllThingsD.com

On the heels of the news of his departure from HP Friday, Apple veteran and onetime Palm head Jon Rubinstein spoke with AllThingsD about the move and the fate of Palm’s webOS.

Why leave Hewlett-Packard now?

A few months before we shipped the TouchPad, I told Todd Bradley (executive vice president of HP’s Personal Systems Group) that once we shipped I wanted to move on. And he asked me to stay for a while in an advisory role and to help out with the transition to webOS and brainstorming about the directions of PSG, so I told him I’d stick around. And I did. And now there’s a path for webOS and PSG has its path and it’s time for me to move on. This has been in the works for quite some time.

What are your thoughts on webOS as it exists today? Do you think HP made the right call open sourcing it?

Do I think HP made the right call open sourcing it? Versus what? (laughs) You know, we always developed Enyo so it could be open sourced because we saw it as a very powerful cross-development platform. The future is clearly Web-based apps. And some people don’t get that, and I certainly understand, but that is the reality. And, frankly, we were way ahead of our time. WebOS is a great piece of work and really it’s just beginning.

Okay, assuming that’s the case, what does the future look like for webOS?

Well, if HP invests in it the way it says it’s going to and they can build a community around it — and that’s not just people developing for the platform, but other companies using it — it will do well.

Can anyone break through the Apple/Google lock on the smartphone market?

The smartphone market’s a tough one, because it’s controlled by the carriers in a lot of ways. So it really depends on what the carriers do. The route to market isn’t controlled by consumers, it’s controlled by carriers.

What went wrong with TouchPad? Clearly, it wasn’t the resounding success for which you’d hoped.

Well, it wasn’t exactly given much time to find out. But I really don’t want to rehash all that. There’s really no point.

Do you regret selling to HP?

This wasn’t something where I had an opinion. The process was very carefully crafted, as all aquisition processes are, and HP is the one that won the process. I don’t get an opinion on the subject; I never did.

What are your plans for the next year?

I spent the past few years working really hard on webOS and working really hard on turning Palm around and getting it into good enough shape where someone would want to buy it, so I’m going to take a break.

So are you retiring?

No. I’m going to spend some time with my family and think about what to do next. Who knows what I’ll do. Anything’s possible.

FURTHER READING:

Former Palm Head Jon Rubinstein Leaves Hewlett-Packard

With HP’s Raising of the World’s Biggest White Flag, Will Jon Rubinstein and Todd Bradley Surrender Too?

HP and webOS: But They Seemed So Happy Together!

Another Day, Another Shake-Up at Hewlett-Packard

Exclusive: Palm Boss Talks Past, Future of WebOS

Palm Boss Jon Rubinstein: We Still Have a Chance to be a Major Player

Palm Chief: By Birthright, Palm Should Have Owned the Smartphone Market

Palm CEO Jon “Ruby” Rubinstein Talks About the HP Deal

Who Will Buy Palm? If Not HTC, How About HP?

Palm CEO Jon Rubinstein: I’ve Never Used an iPhone

Elevation Partners Managing Director Roger McNamee and Palm Chairman and CEO Jon Rubinstein: The Full D7 Session

Guess That’s What You Call a “Pre” Forma Loss, Eh?

Palm’s New Pilot: Jon Rubinstein

HP's Discontinued TouchPad Sells Out … Again

Lauren Goode — Fri, 27 Jan 2012 17:08:14 +0000

It’s been called the tablet that just won’t die: After refurbished Hewlett-Packard TouchPads became available for a discount on Woot.com, the 16 gigabyte model — which was being sold for $169.99 — is apparently sold out again, The Verge writes. Earlier this week, HP published a road map for open source development on webOS, the mobile operating system behind the TouchPad, six weeks after the company first said it was opening up the OS to the developer community.

Former Palm Head Jon Rubinstein Leaves Hewlett-Packard

Arik Hesseldahl — Fri, 27 Jan 2012 16:47:07 +0000

Jon Rubinstein, the former Apple executive who took over handheld maker Palm and moved with it to Hewlett-Packard in a 2010 acquisition, has left HP effective today, AllThingsD has learned.

Rubinstein is said to have no immediate plans, and had completed a 12- to 24-month commitment to stay with HP after the acquisition. “Jon has fulfilled his commitment and we wish him well,” HP spokeswoman Mylene Mangalindan said.

In a brief comment to AllThingsD, Rubinstein said, “I am going to take a well deserved break after four and a half years of developing webOS.”

Best known for his work on Apple’s iconic iPod music player, Rubinstein left Apple in 2006 and joined Roger McNamee as a partner in the private equity firm Elevation Partners, following its 2007 investments in Palm.

In 2009 he replaced longtime Palm executive Ed Colligan as its CEO, and oversaw a dramatic restructuring of the company’s products, including a significant rebuild of its smartphone operating system. Gone was the legacy PalmOS that had been used in so many popular devices like the Treo that for a time competed seriously against Research In Motion’s Blackberry.

PalmOS was replaced by WebOS, which first appeared on the Pre smartphone, then later on the Pixi and Veer devices. After HP acquired Palm, WebOS was also used on the abandoned TouchPad tablet, and is now an open source operating system overseen by HP.

Rubinstein’s departure is no big surprise. Sources said he hadn’t been seen at HP’s offices following the decision by former CEO Léo Apotheker to get out of the business of making WebOS-based hardware. His future plans have been the subject of speculation for some time.

After HP decided to exit the WebOS hardware business, Rubinstein was assigned to a vaguely described “product innovation role” within HP’s Personal Systems Group during a management shakeup last July. It was an unusual move and one made with little explanation at the time. But sources say it was a preface to Rubinstein’s departure, one intended to lessen its PR impact when he finally left. “That ‘innovation’ gig he was given in July was his first step toward the exit,” said one source, a former Palm exec with close ties to Rubinstein.

Here’s the video of Rubinstein’s onstage interview at our D: Dive Into Mobile conference in San Francisco in December 2010.

[ See post to watch video ]

FURTHER READING:

Rubinstein Interview: With webOS Transition Under Way, It Was Time to Leave HP

With HP’s Raising of the World’s Biggest White Flag, Will Jon Rubinstein and Todd Bradley Surrender Too?

HP and webOS: But They Seemed So Happy Together!

Another Day, Another Shake-Up at Hewlett-Packard

Exclusive: Palm Boss Talks Past, Future of WebOS

Palm Boss Jon Rubinstein: We Still Have a Chance to be a Major Player

Palm Chief: By Birthright, Palm Should Have Owned the Smartphone Market

Palm CEO Jon “Ruby” Rubinstein Talks About the HP Deal

Who Will Buy Palm? If Not HTC, How About HP?

Palm CEO Jon Rubinstein: I’ve Never Used an iPhone

Elevation Partners Managing Director Roger McNamee and Palm Chairman and CEO Jon Rubinstein: The Full D7 Session

Guess That’s What You Call a “Pre” Forma Loss, Eh?

Palm’s New Pilot: Jon Rubinstein

HP Starts Process of Making webOS Open Source; Full Release Due in September

Ina Fried — Wed, 25 Jan 2012 22:00:53 +0000

Hewlett-Packard said on Wednesday it is heading down its promised path of making webOS available to the open source community.

To start with, HP has released an updated, open source version of its Enyo developer tools and plans to deliver Open webOS by September. The company published a roadmap (see below) detailing its plans to release different components of the software, including key apps and its Linux kernel, over the coming months.

“This is a decisive step toward meeting our goal of accelerating the platform’s development and ensuring that its benefits will be delivered to the entire ecosystem of Web applications,” newly minted Chief Strategy Officer Bill Veghte said in a statement.

Of course, the big question now is how much interest there is outside HP in using the operating system.

Apple Sold More iPads Than HP Sold PCs

John Paczkowski — Wed, 25 Jan 2012 02:05:20 +0000

Here’s a metric worth noting: With the monstrous quarter it reported today, Apple surpassed Hewlett-Packard in PC sales and revenue. Apple sold 15.4 million iPads and 5.2 million Macs in its first quarter. That’s more than 20 million personal computing devices. HP’s PC sales for the fourth quarter were 14.7 million, according to Gartner. Which means Apple’s iPad sales alone surpassed HP’s PC sales, as Apple Insider first noted.

Now, to be clear, Gartner’s figure doesn’t include the ill-starred TouchPad. But sources familiar with HP’s build plans say the initial TouchPad order came in somewhere between 1.8 million and two million units. So, even if HP had sold every TouchPad it built, it wouldn’t have matched Apple.

Fusion-io Shares Whacked, but the Flash Madness Club Has a New Member

Arik Hesseldahl — Wed, 25 Jan 2012 00:37:51 +0000

Shares of Fusion-io, the newly public company whose flash memory technology transforms typical servers into super-fast ones that get more work done, are getting hammered in after-hours trading following an earnings report that appears to have freaked investors out.

Shares are down more than $4, or about 13 percent. The freakout appears to be coming from gross margins that shrank to 51 percent from almost 59 percent in the prior quarter, and despite the fact that sales more than doubled sequentially to $84 million from $31 million before.

CEO David Flynn called me up a little while ago to talk about the results, and he reminded me that Fusion launched its new IO Drive 2. It’s a transition to a new product line that’s proving tricky. New products built on new technologies are always a little more costly to build up front, and that’s compounded by the fact that early adopters, when they buy the new stuff, take the lower-end version and not the more expensive and more profitable one.

Also, enterprise customers who buy the new stuff are always conservative and take longer to decide whether they want to buy it or not, he says. Even so, the company has sold 10,000 of the new drives.

But? There’s a new customer of record: Salesforce.com is now a Fusion-io customer, and has joined the likes of Apple and Facebook, which is using the flash-based chips in the servers running in its data centers around the world.

And Salesforce isn’t buying it directly from Fusion, but rather through one its OEM partners, which include Hewlett-Packard, IBM and Dell, though Flynn wouldn’t tell me which one it is.

Salesforce is one of six customers who bought more than a million dollars worth of Fusion’s stuff this quarter and of those, four were repeat customers, Flynn told me.

The Salesforce win is also important, Flynn says, because some have wondered whether Fusion’s technology, while popular with high-end enterprises like banks and Facebook, would make sense for applications that tend to be used in mid-tier businesses, which Salesforce’s mainline CRM application often is. The lower end of the enterprise software market is moving toward cloud-based software, which is often referred to as Software as a Service, or SAAS. “By helping those companies, we are indirectly driving business in the mid-range of the market. Apple and Facebook are in the SAAS business too, it’s just that their customers are consumers.”

One interesting fact that Flynn shared with me: His first job out of college was working for Oracle. His boss at the time? One-time Oracle exec and now Salesforce CEO Marc Benioff. A small world it is, indeed.

Apple Now Eats More Chips Than Anyone

John Paczkowski — Tue, 24 Jan 2012 18:20:16 +0000

Apple has been the world’s largest consumer of flash memory for years. Now it has become the leading buyer of chips, as well. The company spent some $17 billion on semiconductors in 2011, giving it a 5.7 percent share of chip purchasing for the year, according to Gartner. That’s more than Samsung, which spent $16.7 billion for a 5.5 percent share, and Hewlett-Packard, which spent $16.6 billion for a 5.5 percent share. Driving Apple’s ascension in rank: The iPhone, the iPad and the MacBook Air.

Add Another Log to the Fire: HP Employees Grumble About Loss of Stock Grants

Arik Hesseldahl — Tue, 24 Jan 2012 13:00:06 +0000

Given the events of the past 18 months or so — two new CEOs, a brief flirtation with a significant spinoff, the failure and then marginalization of an important consumer product and an unpopular and expensive acquisition — it’s probably no surprise that morale among employees at Hewlett-Packard has dropped significantly in recent months.

But now, many employees in HP’s mid-tier management ranks have something new to grumble about. Some 700 to 900 HP employees who have been participants in a three-year-old HP stock bonus plan learned right before the holidays that they would not be receiving the payout of shares they expected.

The program concerns what HP refers to as PRUs, or Performance-based Restricted Units, and is described in detail in HP’s 10-K and proxy filings with the Securities and Exchange Commission. It was created both as a performance-based bonus and also as a retention plan for certain HP management-level employees at the vice president level and higher.

In a Dec. 12 internal HP email obtained by AllThingsD, employees participating in the program were told that they wouldn’t be receiving a payout for 2011, and that shares accrued during HP’s fiscal years 2010 and 2009 would also be lost.

To explain:

Under the terms of the program, employees received grants representing hypothetical shares of HP stock that were to have been paid out at the end of the three-year period ending Oct. 31, 2011. Had HP met the stated cash flow and shareholder return goals, the shares would have been paid out to employees sometime in December.

Instead, employees were told that they would receive no payout from the PRU program at all, not for 2011, nor for 2010 or 2009.

This is, of course, exactly how the PRU program was to work: With HP’s goals not met, there was no payout to give. And while other equity-based bonuses and grant programs remain in force, for employees in the mid-level ranks — not those in the senior ranks already earning half-million-dollar salaries or more — PRUs represented an important benefit.

It’s not clear exactly how much HP would have been required to pay had the company met the PRU program’s requirements. The company’s most recent 10-K filing said that it had “$82 million of unrecognized pre-tax stock-based compensation expense related to PRUs with an assigned fair value,” but now that the payout has been canceled entirely, it no longer has to account for that amount, nor for any previous year’s PRUs.

Whatever the total amount involved, affected employees who stood to receive PRUs are seething about how and when they were told they wouldn’t be receiving them.

The email, delivered to certain managers on Dec. 12, contained instructions on talking with subordinates about their annual performance review and the rewards they could expect. The subject line was: “Deliver the One conversation.”

It reads, in part:

Managers with FY09 Performance-based Restrictued Unit (PRU) Award Holders

We have the final performance results for the FY09 Performance-based Restricted Unit award, which was based on HP’s performance from FY09-FY11. As you will recall, the performance metrics for the FY09 PRUs were:

1. HP’s annual cash flow from operations as a percentage of revenue for each of FY09, FY10 and FY11, and

2. HP’s Total Shareholder Return (TSR) for the FY09-FY11 period relative to the S&P 500

As a result of the change in HP’s stock price over the three-year period, the TSR requirements were not achieved, and no shares will be released from the FY09 PRU award.

Of course, we are very disappointed that there is no payout this year from this program, and you have specific management actions to communicate the final disposition of this grant for FY09 PRU award holders. The actions are:

– During the One Conversation, you will also need to address the outcome of the FY09-11 PRUs with employees on your team who are FY09 PRU Award Holders

– Please review the FY09 PRU Talking Points and PRU FAQs [Here the email contains links to internal HP documents I have not seen. -Ed] to prepare to have this discussion with your affected employees, who are listed below: [Here the printed copy of the email I received has several listed names blacked out.]

For any other questions about FPR, please ask Contact HR.

Regards,
Evan Wittenberg, VP, Global Talent

Stan Dunlap, VP, Global Rewards

And here’s some more detail about how the PRU program worked, taken from HP’s 10-K and proxy filings:

HP employees who participated in the PRU plan could track the accrued amounts of their PRUs on a Merrill Lynch Web site. I talked to two sources, both of whom had accrued PRUs worth between $100,000 and $200,000 for fiscal 2009 and 2010. Other less senior employees who received PRUs would have accrued between $20,000 and $50,000 in their accounts.

One source told me that as rumors began to circulate that PRUs would not be paid for 2011, most people assumed that the accrued amounts for 2009 and 2010 would still be paid. How wrong that assumption was became apparent on Monday, Dec. 11, as the amounts in their Merrill Lynch PRU accounts plummeted to zero. As recently as Dec. 9, the prior Friday, the value of the accrued PRUs for 2009 and 2010 were still displayed.

HP CEO Meg Whitman discussed the decision not to pay out PRUs in a conference call with HP’s top 900 executives days later. According to people who were on the conference call, Whitman primarily blamed the economy.

Despite the fact that HP followed the PRU program’s provisions correctly, affected employees are grumbling that management has “crossed a line.” As one source put it to me, revealing the decision during the weeks leading up to Christmas was “unconscionable.”

“If they will cross this line now, there’s no line they won’t cross later,” said one source, a current HP employee who asked not to be named. “They could have played straight with us and told us this was coming months ago. The way they’ve done this is not in keeping with the HP way.”

The decision is hurting morale at a time when HP needs to hold on to its people. One source, who left HP recently for another company, says he is routinely being peppered with resumes from HP employees looking to jump ship.

Update: An HP spokesman says of the PRU program that compensation is tied to performance and the 2011 fiscal year wasn’t a good one for HP. Still other bonus programs did pay out. “High-performing employees were still eligible for salary, stock and bonus awards that year.”

As to the timing of the decision, he said since HP’s fiscal year ends on Oct. 31, it’s natural that compensation decisions fall in December. “That’s the time every year that we do raises and award bonuses. That is when these things are announced.”

Of course, many of the affected employees are blaming HP’s prior generation of management for not meeting results, as well as its board of directors. HP shares fell considerably during the 11-month period that Léo Apotheker was CEO, and it was on his watch that the company shook the confidence of investors, as it missed quarterly earnings targets three times in a row.

This probably won’t make them feel any better, but Apotheker is affected by the loss of PRUs, too: Under terms of his separation agreement, Apotheker was to have received 424,000 PRUs which on paper would be worth $12 million and change, given Monday’s share price. But according to his contract on file with the SEC, his PRU grants were made under the same rules as those made to other employees. That means they’re gone, just like those of other affected HP employees.

Can This Broken Robot Help Save Cisco Systems?

Arik Hesseldahl — Mon, 23 Jan 2012 05:00:11 +0000

If you watched Sunday’s two conference-championship football games in the U.S. and paid any attention whatsoever to the commercials, there’s a good chance you saw the ad spot (embedded below) from Cisco Systems.

The spot depicts a batch of assembly-line robots busily building cars, as an instrumental version of the 1979 Gary Numan hit “Cars” plays happily. All is well until one of the robots experiences trouble and complains to the others, “I’m broken.” No problem, one of the others says, fixes his stricken comrade, and all is again well. Cue the voice-over, saying something about assembly lines that repair themselves. Then cue the corporate logo, aaaand … out.

The spot — which has exactly 100 percent less Ellen Page than the last series of Cisco TV ads — is part of a significant new advertising offensive that Cisco is launching today on television, in print and online. The TV spots will appear during the NCAA basketball games, the National Hockey League’s All-Star Skills Competition, and on CNBC and other business-oriented programming. However, it notably won’t appear during the Super Bowl.

Those robots will be seen again, disassembling and reassembling sections of certain Web sites as part of a series of “site takeovers,” including CNBC and The Street, among others.

The print portion is a six-page “manifesto” that explains ways that Cisco’s “Human Network” plays important and unexpected roles at banking companies and companies that sell chutney, and helps the National Basketball Association push its video around the world. The manifesto will appear in The Wall Street Journal (which, like this Web site, is owned by News Corp.), the Economist and the New York Times.

There will also be a social campaign via LinkedIn that goes after 140,000 C-level executives registered on that network. It will be the first time that embedded video will be used in a LinkedIn campaign. More TV ads will come later this year, as will localized versions of the campaign for international markets.

Last week, I talked with Blair Christie, Cisco’s chief marketing officer, who said that the manifesto in particular is about using the voice of its customers to show how Cisco’s technology can help companies do things they couldn’t do before. Of course, the point they’re supposed to get is that a Cisco intelligent network is what’s enabling them to do that.

Christie says it’s all part of Cisco’s effort to simplify how it communicates about itself. There’s no more muddling of the message. There’s no more consumer division to eat into the perception that Cisco is anything but an enterprise- and service-provider-focused networking company, so no more need for cute ads that overdo awkward jokes about teleconferencing, or showing a giggly twentysomething woman in a virtual fitting room. Cisco is now about transforming how companies do what they do, either by doing it better, or seeing new opportunities. It’s a big message, and a tricky one to get across in 30 seconds during a football game.

I asked Christie about the state of Cisco’s brand before this campaign, and whether or not there were any perceived weaknesses, given its recent troubles, that this ad effort is meant to shore up. “There was actually a lot that was right with our brand,” she told me. “The opportunity we had was clear and simple. Our customer voice is our talent, and that’s what we’re showing, and it’s consistent with our strategy. We use our customers as a test bed, so why not use them as a reflection of our brand? It wasn’t rocket science. But it was the customer voice that was missing.”

Simplifying and streamlining are themes that Cisco is certainly acquainted with of late. It has been doing a lot of those, and indeed, even shrinking itself as part of a broad-based restructuring. The results of that effort are starting to show up in Cisco’s results.

Time will tell if this new advertising campaign will help Cisco effectively reintroduce itself to its core customers; fight off strong competitive thrusts from the likes of Hewlett-Packard, whose networking division marketed itself aggressively against Cisco in 2010; and perhaps press a perceived advantage against Juniper Networks, which has been having its own problems.

What I find notable, or maybe missing from the campaign, are recognizable names of customers doing innovative things. Yes, there’s the NBA, but in the print manifesto, who’s the bank that’s using Cisco’s video TelePresence to interact with customers? Who’s the small chutney company that turned “browsers into buyers”? And who’s the car company with such smart assembly-line robots? It’s a good message that, to my mind, could be made a lot more effective with more specific examples.

And while I grant it’s often difficult to get customers to agree to be named in ads like this — you could almost hear CEO John Chambers’s frustration about not being allowed to name a certain banking customer, about which he was obviously proud, on a recent conference call — the biggest networking company in the world shouldn’t have such a problem. It should be able to brag that this or that household-name bank is an enthusiastic Cisco customer, and that Cisco networks powered the manufacturing of that popular car everyone is talking about right now. That would add some real oomph, and really serve to remind potential customers that Cisco is still, despite its recent missteps, the networking world’s alpha dog.

Anyhow, my critique aside, here’s the robots spot. Enjoy:

Cisco Robots from Arik Hesseldahl on Vimeo.

Seven Questions for Bill Veghte, Hewlett-Packard's New Chief Strategy Officer

Arik Hesseldahl — Fri, 20 Jan 2012 15:25:03 +0000

Earlier this week, Hewlett-Packard gave Bill Veghte, its executive vice president for software, a new title: Chief Strategy Officer. The job has been vacant since Shane Robison retired last year.

Veghte joined HP in 2010 after 20 years at Microsoft, where he managed the $15 billion Windows business and oversaw the launch of Windows 7. At HP, he has been credited with growing its software revenue by 18 percent last year.

Given Veghte’s history as a software guy, his appointment to this role can’t help but be seen as a key signal by CEO Meg Whitman of the role she sees software playing in HP’s strategy going forward. That was one of the things I asked Veghte about when we spoke by phone earlier this week.

AllThingsD: What, in your view, is the role of the chief strategy officer at HP, and what do you expect it to entail in the coming year?

Bill Veghte: As we’re out talking to customers, they’d like to buy more from HP; they’d like HP to be more successful. They look at the advances we’re making in networking or storage or printers, but they want to know why the whole is greater than the sum of is parts. What is HP’s strategy for continued leadership in the market transitions that are going on? And some customers would say that where HP is concerned, that’s not a fully realized opportunity.

And you’re coming at it from the software part of the business, and we’ve heard from Meg saying she’d like to grow opportunities in software. Your appointment, to me, sends a bit of a signal that software is going to be a big part of HP’s strategy to get things turned around. Is that accurate?

I think, certainly, as I talk to Meg and Ray [Lane, HP chairman], and with the members of the executive committee, I’ve found that this is a catalyzing role. If done right, there are different models of strategy in different Fortune 500 companies. And the one that makes sense here is catalyzing with other business units. Whether that’s Vijay Joshi in printing and imaging, or with Todd Bradley in PCs, or John Visentin in the enterprise group, there’s a strategy that each one of those is trying, and which is accretive to a whole that is greater than the sum of the parts. And so, to the extent that software is glue or networking is glue, I think it’s a statement that has more to do with a pan-HP strategy than something that’s specific to software.

What’s Job One, starting on your first day?

Job One is making sure that as we have those conversations with customers, they see an HP that is unified around a set of constructs and offerings that deliver what they need. It’s different from having offerings that are, by themselves, individually great. It’s about having unifying themes and constructs.

It seems that you’re talking about finding a way to routinely and thoughtfully combine different things that HP makes or does, in ways they aren’t being done now. Is that what you’re getting at?

I think that very accurately characterizes the opportunity. When we talk to the leadership team, we hear a lot of the same thing. There is a lot of great stuff within HP, whether you get that in terms of market position, or IP, or people. I like how you put that: How do you routinely and thoughtfully combine things, particularly in light of the market inflections that are happening. We are in a tectonic shift, and that can be an opportunity, if you clearly spell out the value proposition for customers. Not only in each one of the units, but where you’re thoughtfully combining them so that the whole is greater than the sum of its parts.

I thought of an example around meeting the needs of the market. There was an IHS iSuppli report out earlier this week about cloud servers, which are growing. But customers are going to Taiwanese ODM companies to get customized products, while at the same time cloud servers are growing generally. Is this the sort of thing that might affect HP?

I was talking to Dave Donatelli [general manager of Enterprise Servers] about this recently. It’s interesting, because it seems like in more recent months it has flipped back, because of the integration within that customization. A great example that Dave and I have been working on is the whole cloud system piece. You’ve got a lot of great stuff in automation and orchestration software that is inherently cross-platform, and which crosses virtualization engines and marrying that deeply with the converged infrastructure. We’re the only company that can give you a single stack, soup to nuts, from a single vendor. The core construct is that there’s a lot of private cloud build-out going on, and those customers who are doing it are saying they don’t want to be the systems integrator for six different vendors, and they also prefer not to be locked in to a single vertical stack. That’s a huge advantage for us. And to your point about routinely and thoughtfully combining, we should do exactly that. It’s been doing well for us in the marketplace, but how do you make that routine against the opportunities we see in the marketplace?

You spent about 20 years at Microsoft. How does that inform what you’re bringing to this job?

At the core, any of these jobs are about identifying and exploiting market shifts for customers. I had the privilege of having a front-row seat during some big marketplace disruptions, and helping catalyze businesses and delivering superior market positions and solutions. It’s all about handling change, and turning it into an opportunity.

Digital Pen Maker Livescribe Lands New Funding, Taps Ex-HP Exec as New CEO

Ina Fried — Thu, 19 Jan 2012 05:00:13 +0000

Digital pen maker Livescribe has quietly replaced its longtime chief executive with former HP executive Gilles Bouchard.

Bouchard has been on the job since last month, but Livescribe is just now announcing that he has taken the helm from Jim Marggraff. Marggraff will remain on the company’s board and will be a part-time adviser, Bouchard said.

Among his goals, Bouchard said, are strengthening the company’s partnerships and building wireless connectivity into future pens. All of its current products have to be docked with a computer to share data.

“We have to be a step function from where we are in terms of cross-device support,” Bouchard told AllThingsD. In addition, he said that the product is still too hard to explain to consumers.

By writing on special paper, Livescribe’s “smartpens” are able to capture all of the data written, as well as syncing that data with recorded audio notes. This “paper replay” feature allows students, reporters and others to move easily between different parts of a class or meeting.

The pens have found something of a niche, big enough to find their way onto shelves of Best Buy and Staples, but not yet enough to get the five-year-old company out of “investment mode.”

The company had said last year that it expected to sell its millionth digital pen before the end of 2011. A Livescribe representative said the company fell “just shy” of that goal, and expects to hit the mark early this year.

As part of taking the job, Bouchard said he knew the company would need more resources than it is generating from its current digital pen business. Bouchard said the company has raised a further $10 million in commitments from existing investors — payments that will be made over the course of 2012.

“I ended up voting with my feet and they ended up voting with their wallets,” Bouchard said in an interview.

HP's Former CTO: Ultrabooks Are Nothing New, webOS Still Has Life Yet

Lauren Goode — Thu, 12 Jan 2012 22:02:37 +0000

Phil McKinney, the former chief technology officer of Hewlett-Packard’s PC unit, is taking a hard stance on Ultrabooks.

“There’s nothing new,” he told AllThingsD in an interview at the Consumer Electronics Show in Las Vegas. “And many look the same. If you covered up the label on them, you can’t tell them apart.”

Ultrabooks, in case you’ve missed the ultra-noisy hype this week, are Intel-driven lightweight laptops, with Dell, HP, Lenovo, Samsung, and Acer getting into the game, to name a handful. In addition to portability, some computer makers are punching up the laptops with features like carbon fiber and Gorilla Glass coatings, flexible bodies, NFC chips and battery boosters.

“At the end of the day, they have Intel chips; they’re running Microsoft Windows operating systems,” McKinney said. He pointed to the HP Voodoo Envy 133, which hit the market in 2008, had a 13.3-inch display and weighed only 3.4 pounds (albeit at a $2,000-plus price point).

McKinney was attending CES as a member of the press — he’s writing a column for Forbes. He was also promoting his upcoming book, “Beyond the Obvious.”

McKinney exited HP last fall, following a tumultuous couple of months that included a CEO swap, the abandonment of webOS hardware, and reports that HP might spin off its PC unit. During McKinney’s nine years at the PC maker, he guided much of the company’s innovation and R&D. More recently, that included the development of Ultrabooks, he said.

McKinney also offered his thoughts on webOS, which HP acquired with Palm back in 2010, and which recently became an open source project. “I was disappointed by the decision to kill the hardware. I still think, though, there’s a lot of life left in webOS,” he said.

He hears from developers and tinkerers, he said, who are still excited to work with webOS, but are waiting for the code, the access and the governance model from HP in order to really begin developing on the platform.

“Ultimately, I think webOS could become the alternative OS that you can download on devices that come with another operating system built in,” McKinney said. “Apps from developers are continuing to grow for webOS. The interest is still there.”

(Photo courtesy of the DEMO Conference/Flickr)

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2011 Was the Second-Worst Year for U.S. PC Sales in History, Except at Apple

Arik Hesseldahl — Thu, 12 Jan 2012 15:52:29 +0000

Last year, for the first time since 2001, the U.S. market for personal computers shrank, according to separate research reports issued yesterday by the research firms Gartner and IDC. The year 2011 was, by IDC’s reckoning, the second-worst year in the PC industry’s history.

U.S. consumers and businesses bought 71.3 million PCs, representing a drop of nearly 5 percent over 2010, when they bought more than 75 million, IDC said. So much for the year.

And the fourth quarter, traditionally one of the industry’s strong points, wasn’t much help. Shipments of PCs in the fourth quarter declined by nearly 7 percent, according to IDC; Gartner said they fell by 6 percent. Hewlett-Packard saw its U.S. shipments drop by 25 percent in the IDC report; Dell by 5 percent; Acer by 14 percent; and Toshiba by 2 percent.

HP’s flirtation with spinning off its PC division last year hurt sales, as businesses and consumers lost confidence in the company. The main beneficiary of that appears to have been China’s Lenovo, the world’s No. 2 PC maker, which saw its shipments, on a global basis, surge by 37 percent, though it’s not much of a player in the U.S. market.

For the full year, HP saw its shipments fall by nearly 5 percent; Dell’s fell by more than 8 percent; and Acer’s fell 30 percent in the U.S.

So who grew? Apple. It saw its shipments grow by 18 percent in the quarter, according to IDC, and by 21 percent in the Gartner report. As of the end of the year, IDC said, Apple’s share of the U.S. market amounted to 10.7 percent, which is up from 8.8 percent a year ago.

Ultrabooks From HP and Lenovo That Are (Kinda, Sorta) Different

Lauren Goode — Wed, 11 Jan 2012 19:38:56 +0000

As we expected, Ultrabooks are everywhere this week. And despite will.i.am’s proclamation yesterday at Intel’s press event that they’re the new ghetto blaster, many of them seem indistinguishable from each other.

So HP and Lenovo have added some features to their Ultrabooks to set them apart from all the ultra-noise.

Lenovo's IdeaPad Yoga

The Lenovo IdeaPad Yoga is named as such because of its flexibility. The 10-finger touchscreen has a full range of motion at the hinge, so when fully folded, the laptop turns into a 13.3.-inch tablet. And it can be propped up in tent mode — or, in this case, downward dog. I could see this being useful for entertainment viewing at home, as well as in small spaces, such as on an airplane.

Other laptops have shown this range of motion before — remember the Dell Inspiron Duo? — but adding this feature to a super-slim, touchscreen Windows 8 laptop is a nice touch.

The Yoga’s cover is solid aluminium; it measures 16.9mm thick and weighs 3.1 pounds. It is, of course, powered by an Intel Core processor, with 8 gigabytes of RAM and a 256GB solid-state drive. Lenovo claims the battery lasts up to eight hours.

Since the IdeaPad Yoga runs the upcoming Windows 8 operating system, the laptop likely won’t be available until the second half of the year. A representative for Lenovo said the company hopes to price it around $1,300.

Gorilla Glass is what makes the HP Envy Spectre 14 stand out. The ultra-thin, chemically strengthened material is what coats the exterior and the wrist rest of this laptop, giving it a sleek, reflective look — albeit one that needs to be wiped with a cloth pretty frequently.

HP's Envy Spectre 14

Yesterday at CES, someone lamented to me, regarding the Envy Spectre 14, “But it’s so heavy.” Weighing in at almost four pounds, the Spectre is a bit heavier than other Ultrabooks, but for comparison’s sake, the 13-inch version of the “regular” HP Envy notebook is just about the same, at 3.68 pounds.

The Spectre is 20mm thin, has a 14-inch screen and Intel Core processors, and supports up to 256GB of storage. It also boasts nine hours of battery life, versus Lenovo’s eight. The Spectre also has a backlit keyboard and proximity sensors which detect when a user is approaching the laptop and light up the keys in advance. And it has HP’s Beats Audio built in.

Another interesting feature of the Spectre is that it’s NFC-enabled; theoretically, users can share data from an NFC smartphone by tapping the phone against the Spectre.

The HP Envy Spectre is expected to launch in early February, and will cost around $1,399.

Neither of these Ultrabooks have DVD slots, but the HP Envy Spectre 14 has an expandable Ethernet port, USB 3.0, HDMI and Mini DisplayPort, while the IdeaPad Yoga has USB 2.0 and 3.0 ports, an HDMI port and an SD card slot.

A fun side note about the HP Envy Spectre 14: A company representative says HP actually first displayed a prototype of this Ultrabook last fall, during New York Fashion Week. But it was a “bejeweled” version, with Swarovski crystal designs by Marchesa, and fashion-focused reporters barely batted an eye at the thing. Who knew they were missing one of this season’s biggest CES trends?

(Images courtesy of Blogeee/Flickr)

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Microsoft Phoning In Its Last CES Keynote

Myspace — Yes, Myspace — Says It’s Going to Sell You Web TV

Samsung Unveils “Super” 55-Inch OLED TV

Nokia Unveils That LTE Windows Phone It’s Been Dying to Share

Steve Ballmer Gives Ralph De La Vega a Very … Vigorous Greeting (Video)

Interview: AT&T’s De La Vega on LTE, Tablets and Life After T-Mobile

AT&T’s De La Vega: Shared Data Plans Still in the Works

LG: 55-Inch Glasses-Free 3-D Screen Is on the Way

LG Pushes 4G Smartphone Through Verizon: The LG Spectrum

Live: AT&T’s Vegas Act Stars LTE and, Making Her Return to the Stage, Nokia

CES Notebook: The Constant Search for Power and Vegas’ Worst-kept Secret

Belkin Bringing Mobile TV to Lots of Cellphones, Will Anyone Tune In?

Acer Introduces “World’s Thinnest” Ultrabook and a “Me-Too” Cloud Service

There Better Be Some Cool Stuff at CES, Because CE Holiday Sales Data Bytes!

CES 2012: Snooki and Bieber Are In, Gaga Is Out!

Coming to a Smartphone Near You: Gorilla Glass 2

RIM Hopes Next PlayBook OS Will Impress at CES

Ultrabooks, the Ultra-Fancy New Name for Laptops

At CES, Expect More Gadgets Telling You to Get Off the Couch

Intel to Detail Its Phone Plans at CES Next Month

Microsoft Pulling Out of CES After Upcoming Show

Intel to Detail Its Phone Plans at CES Next Month

Dell Will Drop the Flashy Vegas Act for CES This Year

Ultrabook Conga Line Preps for CES 2012

"Menry" Is Back at HP: CEO Meg Whitman Hires Longtime PR Guru Henry Gomez as Top Flack

Kara Swisher — Tue, 10 Jan 2012 22:18:28 +0000

Through many years of working together, first at eBay and then during the failed California governor’s race, Meg Whitman has relied heavily on Henry Gomez for communications advice.

Their close working relationship even earned them the mash-up nickname among those at eBay and elsewhere: Menry.

So when she got the CEO job at Hewlett-Packard, it was a bit of a surprise that Gomez — who has recently been living on the East Coast (see baseball cap above) — helped out a lot, but was not named to the top PR slot at the tech giant.

No longer, it seems, with Gomez being named EVP and Chief Communications Officer at HP today.

It’s a big job, given the hard work that Whitman faces reviving the iconic tech company, which has been beset by strategic and business challenges of all kinds, shapes and sizes in recent years.

While it might be seen as an adjunct to the business, the forward-facing parts of HP are in need of a powerful public relations initiative, which is presumably why Whitman wanted one of her most trusted and longtime staffers in the post.

According to HP, Gomez will become a member of the company’s executive council and report directly to Whitman.

Said HP in its press release, which you can also read below: “Gomez will be responsible for HP’s media and industry analyst relations, executive communications, employee communications, government affairs and global social innovation.”

As in, the voice of Menry is back!

Here’s the release:

HP Names Henry Gomez Executive Vice President and Chief Communications Officer

PALO ALTO, CA, Jan 10, 2012 – HP today announced that Henry Gomez will join the company as executive vice president and chief communications officer.

Gomez also will become a member of HP’s executive council, reporting to Meg Whitman, HP president and chief executive officer.

In this newly expanded role, Gomez will be responsible for HP’s media and industry analyst relations, executive communications, employee communications, government affairs and global social innovation.

Gomez, 48, comes to HP with 26 years of communications experience. He spent most of the last decade working at eBay, where he served in a variety of roles including senior vice president for Corporate Communications and president of Skype. Gomez played a crucial role in building eBay’s brand during the critical years following the company’s initial public offering.

Prior to joining eBay, Gomez was vice president of Corporate Affairs at HBO in New York. He started his communications career at Hill and Knowlton and has worked on a wide array of public relations and marketing communications challenges in numerous industries.

Most recently, Gomez ran his own consulting business, providing communications counsel to clients such as H&R Block. He was on the leadership team of Whitman’s 2010 campaign for governor of California and has been involved in government and political affairs throughout his career. In 2011, Gomez was appointed to the board of BJ’s Restaurants, Inc. He is a graduate of Boston College.

“Henry is an excellent manager and communications executive,” said Whitman. “People around the world care deeply about HP, and I believe we have an important obligation to clearly explain where we’re headed and why. Henry will work closely with the entire leadership team to make certain customers, partners, employees, and shareholders fully understand our vision and strategy.”

About HP HP creates new possibilities for technology to have a meaningful impact on people, businesses, governments and society. The world’s largest technology company, HP brings together a portfolio that spans printing, personal computing, software, services and IT infrastructure to solve customer problems. More information about HP is available at http://www.hp.com .

Gartner Slashes 2012 Global IT Spending Forecast

Arik Hesseldahl — Thu, 05 Jan 2012 15:05:21 +0000

Happy New Year. IT market-research outfit Gartner has some sour news to start off 2012: It has just slashed its growth forecast for global on tech spending.

The new forecast calls for companies and governments to spend a combined $3.8 trillion on information technology, which would amount to growth of 3.7 percent from 2011. The previous forecast had called for growth of 4.6 percent.

For perspective, the difference on a dollar basis is about $100 billion, which is certainly real money, but when you consider the various puts and takes affecting the projected spend, it makes a certain amount of sense.

Gartner says that all four of the major technology sectors it tracks — computing hardware, enterprise software, IT services, and telecom equipment and services — will see their growth rates slow this year.

You can probably guess why: The uncertain global economy, the euro zone sovereign debt crisis and the disruptions on the hardware supply chain from last year’s flooding in Thailand on hard-drive production have all teamed up to perform a triple whammy on the tech sector. The Thailand problem will probably last until well into 2013, Gartner’s Richard Gordon says in a statement, echoing what Seagate CEO Steve Luczo told AllThingsD in an interview in November.

Telecom equipment spending will probably suffer the least, Gartner says. Sales in that sector will grow by nearly 7 percent to $475 billion, followed by the enterprise software market, which will grow by 6.4 percent to $285 billion. The chart at the right, which I screengrabbed from Gartner’s handout, breaks down the revised outlook by each sector versus what the previous growth outlook had been.

Gartner also trimmed its average annual growth projection for IT spending through 2015. It now expects spending to grow by about 5 percent on average, down only slightly from 5.4 percent, but in the wider scope of a few trillion dollars, a fractional change still amounts to hundreds of billions of dollars.

If 2011 Was a Year to Forget, 2012 Looks Like More of the Same

Arik Hesseldahl — Tue, 03 Jan 2012 15:06:50 +0000

If 2011 was a year to forget for investors in large IT companies, then 2012 doesn’t look to be much better, says ISI analyst Brian Marshall in a note to clients today. Lots of tech stocks ended the year lower.

Of the companies in Marshall’s coverage universe, only Apple, IBM and Dell had positive returns and saw their shares rise by an average of 20 percent. By contrast, the three biggest decliners were Hewlett-Packard, Juniper and NetApp. (For the record, the others Marshall covers are Brocade, EMC, VMware, Cisco Systems and F5 Networks.)

One thing the advancers had that the decliners didn’t? Conservative guidance. “The importance of conservative guidance practices was underscored as investors had little tolerance for companies that could not execute on stated growth targets,” Marshall writes. HP, NetApp and Juniper all set out aggressive earnings goals that proved too optimistic. Per-share earnings estimates for the coming year among those three were revised downward by an average of 15 percent.

By comparison, Apple, IBM and Dell set lower barriers and ended up having positive earnings surprises, and have moved up their forward earnings estimates by about 17 percent. “Setting conservative targets will again remain critical in 2012,” Marshall writes.

So what’s going to set the tone for tech stocks in 2012? A lot of the same things that made 2011 so difficult. Sovereign debt concerns in Europe, coupled with governments around the world implementing austerity measures to help get their budgets back on track, will hammer IT spending at companies that sell to governments.

That doesn’t mean there won’t be positive trends to look for. Certain megatrends in computing will sail on, despite the rough economic waters. “Cloud computing and mobile internet remain firmly in place and can drive outperformance for companies positively exposed,” Marshall says in his note.

The growth in mobile clients like smartphones and tablets will spur ever more rich and complex computing environments in the cloud, meaning more and better data centers packing more computing power into the same or smaller footprint. Marshall mentions microservers, which brings to mind HP’s Project Moonshot, which aims to create dense racks of small servers, as an important trend to watch. “We think many data centers could look to microserver solutions that deliver thousands of cores in a rack and order of magnitude improvements in performance/power,” writes Marshall. These microservers, he says, could be powered by both x86 chips from Intel or Advanced Micro Devices, or by ARM-based chips.

And since there will be more servers — all of them virtualized, allowing one single server to act like dozens or even hundreds of servers, plus increased demands for storage and video — they will require higher-performing connections. That’s going to push companies building data centers to adopt Ethernet fabrics. On top of that, more companies build servers that support faster 10 gigabit Ethernet. Marshall argues that these Ethernet fabrics could constitute as much as one-third of the $6 billion market for data center switching within three years.

Then there’s big data. With more information than they know what to do with scattered all over the place, companies are struggling to make sense of it all. Large enterprises will be investing in data integration tools to get a unified view of all their information. “We believe organizations will continue investing in data integration tools which can help link historical and real-time data, and enable more valuable business intelligence and predictive analytics,” Marshall writes, adding that the market is worth about $2 billion today, but is in the “early innings of a growth cycle.”

(Image courtesy of chainsawpanda)