Business Tech

New survey shows IT spending up...or does it?

For those searching for an IT spending recovery in 2009, new data from an Information Systems Audit Control Association survey offers some reason for hope...and confusion.

On the positive side, the survey of 500 IT professionals suggests that 25 percent of enterprises surveyed will be investing through the downturn.

This is great, especially when coupled with other data from the survey that suggests:

Only 16 percent will make "sweeping cuts" in IT spending. 14 percent will keep spending at the same rate.

This is good, right?

Well, it might be, except the survey, which was released Friday, … Read more

EC wants software makers held liable for code

Software companies could be held responsible for the security and efficacy of their products, if a new European Commission consumer protection proposal becomes law.

Commissioners Viviane Reding and Meglena Kuneva have proposed that EU consumer protections for physical products be extended to software. The suggested change in the law is part of an EU action agenda put forward by the commissioners after identifying gaps in EU consumer protection rules.

A priority area for possible EU action is "extending the principles of consumer protection rules to cover licensing agreements of products like software downloaded for virus protection, games, or other … Read more

Sun shareholders sue to block Oracle acquisition

Sun Microsystems shareholders have filed three separate class action lawsuits to block a $7.4 billion acquisition by Oracle, the company revealed in a 10-Q filing with the Securities and Exchange Commission.

The lawsuits allege Sun's board didn't live up to its fiduciary responsibilities to shareholders when it accepted Oracle's acquisition offer, saying "the consideration offered in the proposed transaction is unfair and inadequate."

Personally, I don't think these issues will block the deal. If it really has to, Oracle has the cash to up its offer or settle with the shareholders before it gets nasty (if the suits actually have any merit). And in another wrinkle, Oracle probably already knows that Sun may have violated the Foreign Corrupt Practices Act.

That's right: Sun also disclosed Friday that it may have violated the act, which bars American companies from bribing or engaging in other unethical activity with foreign officials. This can often be difficult since some foreign governments, to put it charitably, don't have the same hard rules against government bribery. Potential contractors can be put in the no-win situation of either paying off local officials or losing out on a lucrative contract. That's not to say that's the situation Sun is facing. It's not clear what Sun executives believe may have happened, but they have hired outside lawyers to look into it.

But as I already said, I don't think these new revelations are deal-breakers, even if FCP violations can carry potential penalties that include fines, criminal sanctions, and a ban from doing business with the U.S. federal government.

What does this tell us about the Sun/Oracle deal itself?

Oracle execs must believe that they can work out a deal with the dissenting shareholders (or, again, maybe they think their suits have little merit). And Oracle execs probably aren't that worried about any lingering government-related issues. This isn't the first time Oracle's acquisitions have come with legal question marks. The database king successfully fought a government antitrust suit against the eventual takeover of software rival PeopleSoft several years ago. Many pundits thought fighting the suit was folly, but Oracle did it anyway. … Read more

Week in review: Microsoft releases

After arriving first on torrent sites and then last week showing up on Microsoft's developer program Web sites, the release candidate of Windows 7 operating system arrived on the main Microsoft.com late on Monday night. The software was slated to be made publicly available on Tuesday.

The release candidate version, officially build 7100, is expected to be the last major public test of the product before it is finalized. The company will only officially confirm it plans to release Windows 7 before Windows Vista hits its third anniversary of broad availability in January. However, the software maker is … Read more

Citrix updates XenServer and Essentials

Citrix has introduced updates to XenServer, its free virtualization platform, and to Citrix Essentials for XenServer and Hyper-V, its virtualization management package.

The new 5.5 release of XenServer, which Citrix began offering as a free download in February, is designed to provide easier virtualization management and broader integration with enterprise systems, the company said in its announcement Wednesday. This includes hooks that allow third-party products to interact with XenServer to provide full or incremental in-guest, file backups of virtual machines. Image backups are supported too.

In addition, it lets admins carry out GUI-based snapshots from the XenCenter management console. … Read more

Nvidia looks to Windows 7, 'Tegra' for growth

Nvidia is looking to its Tegra chip for growth and Windows 7 for new opportunities.

Speaking during the company's earnings conference call Thursday, Nvidia Chief Executive Jen-Hsun Huang said one the company's biggest opportunities is graphics-specific applications on Windows 7. (Nvidia earnings summary here.)

Huang waxed enthusiastic about a technology he called "DirectX Compute"--which taps into the hundreds of processors inside many of today's graphics processors. "Finally it's possible to do video editing...that's not excruciating," he said. "This is going to be one of the major usage models … Read more

Oracle's Ellison wants to be in hardware

There's been a lot of speculation that Oracle purchased Sun for its software assets like Java, Solaris, and--although this point has seen more debate--MySQL. Even those of us who viewed the acquisition as a serious play by Oracle to become a full-fledged system vendor figured those systems would be mostly x86. That's not to say Oracle would kill SPARC processor development and servers outright--the installed base is too large and profitable--but it would be a business to milk, not to invest in.

However, Oracle CEO Larry Ellison, writing in an e-mail interview with Reuters, claims to have big … Read more

Nvidia posts loss as inventory eases

On Thursday, Nvidia reported a first-quarter loss, as revenue fell 42 percent from last year. But the graphics chipmaker said inventory was easing.

The company announced a net loss of $201.3 million, or 37 cents a share. Last year in the same period, the company posted a profit of $176.8 million, or 30 cents a share.

Revenue was $664.2 million, down from $1.15 billion for the same period last year. This was better than the analysts' average estimate of $534.4 million, however.

Adjusted net loss was 9 cents a share. Analysts had expected a loss … Read more

SugarCRM CEO Roberts replaced by board member

John Roberts on Wednesday resigned from his post as CEO of open-source CRM vendor SugarCRM, leaving board member Larry Augustin to assume the role of interim CEO while the company conducts a formal search for his replacement.

Roberts, whose grounds for leaving the company and future plans remain undisclosed, has made a huge impact on the open-source world, innovating the "Open Core" business model and helping drive open-source applications into the enterprise.

SugarCRM, despite losing Roberts, will be in good hands with Larry Augustin, who, as founder and former CEO of VA Linux, sits on a number of … Read more