Business Tech

Third-quarter sales of servers across the globe showed a 17.3 percent decline from the same quarter in 2008, sagging to $10.4 billion, according to IDC's Worldwide Quarterly Server Tracker.

But server shipments improved, falling only 17.9 percent for the quarter, compared with 30.1 percent in the second quarter, noted the IDC report released Wednesday. Even more promising, shipments grew at a healthy 12.4 percent over the second quarter, the market's largest sequential quarterly gain since 2005.

All three server segments tracked by IDC--volume, midrange enterprise, and high-end enterprise--saw lower third-quarter sales compared with the same quarter last year. Revenue for midrange enterprise servers fell 23.4 percent, while sales of high-end enterprise servers dropped 19.3 percent.

But revenue for volume servers, the lower end of the market, improved over the second quarter and experienced their lowest drop since the third quarter of 2008.

"The worldwide server market exceeded expectations in the third quarter with improving x86 server demand leading the way, which was driven in part by the infrastructure refresh momentum that is building in many geographies," said Matt Eastwood, IDC's group vice president of Enterprise Platforms, in a statement. "In fact, x86 server revenues experienced their largest sequential quarterly revenue increase in nearly five years."

(Credit: IDC)

Among the major players in the server industry, IBM and Hewlett-Packard vied for first place in both sales and market share with a statistical tie. Big Blue took a 31.8 percent slice of the market, with a 12.9 percent drop in third-quarter sales to $3.3 billion. HP grabbed a 30.9 market share as its revenues fell 16.8 percent to $3.2 billion.

Third-place Dell saw its sales decline only 6.8 percent to $1.4 billion, helping it capture a 13.5 percent share of the market.

With its future cloudy, pending regulatory approval of its takeover by Oracle, Sun Microsystems suffered a 35 percent drop in third-quarter sales to $778 million. Reports have surfaced that IBM and HP, among others, have taken advantage of the uncertainty surrounding Sun to lure over several of its customers.

Bringing up the rear of the top five was Fujitsu, which saw an 8.2 percent drop in sales to $594 million, carving out a 5.7 percent slice of the market, an improvement over its position from last year's third quarter.

Though optimistic that the market will continue to improve in the fourth quarter and beyond, IDC is still waiting to see how the recovery plays out.

"IDC believes that platform migration is once again gaining steam in the market and the post-recession server deployment patterns will establish the technology agenda in the datacenter for the next business cycle," said Eastwood. "For server vendors, after five quarters of market contraction, the next few quarters will be critical to determining the technology platform winners and losers in the years ahead."

Earlier in November, Firefox surpassed 25 percent usage share of Web browsers, according to Net Applications.

(Credit: Net Applications)

Mozilla released a third beta of Firefox 3.6 on Wednesday, adding stability and performance features, and said it hopes to lock down the code soon for its first release candidate.

The new beta, for Windows, Mac, and Linux, includes a component directory lockdown that makes it harder for other software to meddle with the open-source browser's state by preventing that software from sidling into the same folder as the browser's own components. The result should be fewer crashes, said Mozilla's Johnathan Nightingale in a blog post, and Firefox still is open to third-party extensions via its official add-on mechanism.

The change should improve security, too, added another Mozilla programmer, Vladimir Vukecevic, who wrote in his own blog post that Mozilla is considering bringing the change to Firefox 3.5, too.

"Creating binary components to interface with the operating system or with other applications is fairly straightforward, though ultimately dangerous. Binary components have full access to the application and OS, and so can impact stability, security, and performance," Vukecevic said.

Also in the latest beta of 3.6 is a feature that lets the browser run some Web-based JavaScript programs asynchronously, which is to say without being so picky about the order the scripts run. This can improve the speed that Web pages load, Mozilla said.

The biggest Firefox 3.6 feature most folks will notice is Personas, the reskinning add-on that's now being built in. More than 10 million Personas have been downloaded so far, Suneel Gupta and Myk Melez of the Personas team said Wednesday.

Mozilla is working to release a final version of Firefox 3.6 before the end of the year, and one sign the project is wrapping up is that the developers are locking down the features and changes that can be added into the release candidate 1. Code freeze for RC1 is scheduled for Wednesday but might be at risk, a Mozilla planning site said this week.

Firefox is steadily gaining in use. Last week, Web traffic monitoring firm Net Applications announced Firefox cleared 25 percent share of those using browsers worldwide--not dethroning Internet Explorer by any means but still winning over new users. Mozilla estimates there are more than 300 million Firefox users total, and this week said there are more than 300,000 testers using the Firefox 3.6 beta

Google's Chrome, meanwhile, is appealing to some of the same browser enthusiasts who were Firefox's first users. One of its big selling points is speed, and Google is working on other ways to make the Web faster, too. Chrome gives it a vehicle to test such ideas out in the real world, a strategy that Apple, Opera, and Firefox have employed to advance the Web state of the art.

One Mozilla programmer, Alexander Limi, revealed a speedup technology called Resource Package for Mozilla, too, on Tuesday. His proposal calls for bundling many Web page elements up into a single compressed file that can be retrieved in a single Web-page request action. Browsers are limited in the number of such actions they can take in parallel, so consolidating the interactions can make pages load faster. The approach is backwards compatible with existing browsers that don't support the feature, he added.

"If the feedback is good we're likely to try and get this implemented for Firefox 3.7," said Mozilla evangelist Christopher Blizzard in a blog post Tuesday.

As much as Twitter is a powerful communication and social application, it's a relatively simple Web app. As part of a new contest sponsored by Engine Yard, Ruby on Rails developers are going to turn Twitter into their own application server.

The contest asks developers to program the "Worst App Server Technology Ever" (Waste) using Twitter as the message bus. While much of the contest is being done tongue-in-cheek, it's actually an interesting use case to see if a service like Twitter can take the place of a more traditional message bus like IBM MQ series or AMQP (Advanced Message Queuing Protocol).

Contest participants register up to five Twitter handles and code the function that each would perform in a program. When the contest challenge is issued on November 12, participants will have to use at least 10 of the pre-designated Twitter handles (other than their own) as endpoints to perform functions on data sets located at unique URLs. All messages will work through a series of automated public Twitter replies.

This is somewhere between an application server, a social game, the "telephone game" and service-oriented architecture (SOA) where Twitter plays the role of the enterprise service bus and the Twitter API is the broker between data sources. SOA relies on services exposing their functionality other applications and services can read to understand how to utilize those services. In this case, Twitter can be used as an application server in the cloud. (Take that buzzword bingo players.)

The funny thing is that as absurd and comical as this sounded when the Engine Yard guys told me about it, I've started to think about this as a way to possibly achieve a real technological breakthrough. And while I don't think that Twitter will be the "cloud bus," I do think that there is a lot to be learned from applying this type of constraint to a data flow process.

Engine Yard VP of marketing Michael Mullany told me that the contest shows how developers can leverage a relatively straightforward platform in innovative ways. But it's also another example of an interesting marketing effort to use Twitter as the vehicle for one's own benefit. Also, in true open source fashion, developers wind up building new applications based on code written by their peers.

Let's hope Twitter can handle the attention and developers are not greeted by the ever-lurking fail whale. You can check out the contest and learn more details at Engineyard.com

Google's Chrome is still the fourth-place browser in terms of usage, but it gained more than others in October when it comes to stealing usage away from the dominant Internet Explorer.

According to Net Applications' browser usage share statistics, Chrome gained from 3.2 percent to 3.6 percent from September 2009 to October. The company bases its statistics on visits to a global network of 40,000 Web sites, dusted with some statistical processing.

Next was Mozilla's Firefox, which rose from 23.8 percent to 24.1 percent. Apple's Safari rose from 4.2 percent to 4.4 percent. Opera was essentially flat at 2.2 percent.

The big loser was IE, which dropped from 65.7 percent to 64.6 percent, according to the statistics.

Buoyed by Netbook sales, shipments of Intel graphics chips surged and Advanced Micro Devices gained on Nvidia in the third quarter.

Third-quarter shipments of graphics processors jumped 21.2 percent over the second quarter, according to market researcher Jon Peddie Research. Graphics chips drive the images produced on PC users' screens.

A total of 119.45 million units were shipped in the third quarter, exceeding the record 111 million units that shipped in the third quarter of 2008, according to Jon Peddie, president of Jon Peddie Research. "So the market has caught up with, and exceeded, last year's highs. The crash of fall 2008 is now behind us," he said in a statement.

The third quarter exceeded a robust second quarter. "Q2 was already a great quarter clearly signaling the holidays will be robust for PCs and the industry in general," Peddie said.

AMD gained on discrete graphics chip leader Nvidia in quarter-to-quarter growth.

(Credit: Jon Peddie Research)

AMD showed the biggest jump in quarter-to-quarter growth at 30 percent, followed by Intel at 21 percent. But Intel dominates raw shipments. "Intel shipped the most parts at 63 million, over twice as many as its nearest competitor Nvidia," according to Peddie, who said Intel had a 53 percent share of the market in the third quarter. Nvidia was second with 24.9 percent, followed by AMD with 19.8 percent.

Surging Netbook shipments are behind the big Intel numbers. Integrated graphics in notebooks, which includes Netbooks, increased 27 percent over the second quarter. Integrated graphics are built into supporting Intel silicon called chipsets.

"Netbooks will remain popular but they will not have the high market share they had during the recession when they were just introduced. Rather, consumers are expected to 'buy up' in the next quarter," according to Peddie.

Fourth-quarter shipments may not be as strong as the third quarter, however. "The channel is full...That suggests that while Q4 is typically a good quarter for PCs, the quarter-to-quarter growth in Q4 may not be as robust as Q3. Graphics are a great leading indicator. The graphics go in before the PC is built or shipped," Peddie said.

Mårten Mickos

As the European Commission continues to evaluate the potentially deleterious effects of Oracle's proposed acquisition of Sun Microsystems and its open-source MySQL database, concern is rising that delay will harm MySQL without helping competition.

One who shares this concern is former MySQL CEO Mårten Mickos. On Thursday, Mickos sent a letter to Neelie Kroes, the European Union's competition commissioner, urging that the deal be approved for the good of the market and MySQL. He also spoke with CNET News' Stephen Shankland on Thursday.

Below is the edited full text of the letter.

Helsinki 8 Oct 2009

Mrs. Neelie Kroes
Commissioner for Competition
European Commission, J70
B-1049 Brussels/Brussel
BELGIQUE/BELGIE

Dear Commissioner Kroes,

I am writing to you regarding your review of Oracle's pending acquisition of Sun Microsystems. As I understand it, the EU Commission is concerned about a risk of undue concentration of power in the database market. Having been the CEO of MySQL from 2001 to 2009, and built a business that was serving a new market unmet by Oracle and others, I can agree with the questions posed, but I do not share the concerns that have been expressed. In the following, I will explain why.

In brief, my reasoning is as follows:

1. Oracle has as many compelling business reasons to continue the ramp-up of the MySQL business as Sun Microsystems and MySQL previously did, or even more.
2. Even if Oracle, for whatever reason, would have malicious or ignorant intent regarding MySQL (not that I think so), the positive and massive influence MySQL has on the DBMS market cannot be controlled by a single entity--not even by the owner of the MySQL assets. The users of MySQL exert a more powerful influence in the market than the owner does.

Many expected Oracle to harm MySQL as far back as 2005, when they acquired the InnoDB storage engine that plays a crucial role for many MySQL customers. And yet Oracle increased their investment in InnoDB since that time, making MySQL a stronger player in the market.

For further detail on my views on Oracle's intent, please see this interview with me in Forbes Magazine in April 2009.

It may at first blush seem counterintuitive that control of the MySQL assets does not automatically bestow control of the MySQL installed base. But the free installed base of MySQL--enormous on a planetary scale--is voluntarily but not mandatorily coupled to the commercial market of MySQL. It produces huge benefits to the MySQL business, but it is not controlled by it.

Background

The impetus to write this letter comes from my concern with the talented teams of the MySQL business unit and of Sun Microsystems in general. I am also troubled by certain factual distortions about a subject matter that I am intimately familiar with: MySQL and its business model. Open-source business models are complicated and quite different, and it took many years to fully understand and shape the one of MySQL.

A Finnish citizen, I served as chief executive officer of MySQL from early 2001 to February 2008, when Sun acquired MySQL. After that, I served as senior vice president of the database group at Sun until the end of March 2009. Being the only person to have served as the CEO of MySQL and to have attended every board meeting ever held, I believe I have unique insights into these matters.

To be clear, I resigned from my position in March 2009, and I presently have no commercial or financial interests in the MySQL ecosystem, Sun, or Oracle (or any other vendor in the DBMS market, for that matter), other than my loyalty to Sun employees in general and the MySQL team in particular.

MySQL's Markets and Installed Base

MySQL is the world's most popular open-source relational database, and potentially the most popular relational database of all. It has an enormous influence and impact on the usage and the buying patterns of relational databases (also known as RDBMSs), in particular for Web applications. One might even state that the Internet would not be what it is today, were it not for MySQL. Staffed by a highly talented team of passionate employees, the Swedish company MySQL grew the MySQL business from a small one in 2001 to a massive one in 2008.

In this discussion, the term "MySQL" refers to two things. On the one hand, there is the huge phenomenon MySQL--an estimated 12 million active installations under a free and open-source software license, millions, if not tens of millions, of skilled users and developers, and tens of thousands of corporations who use MySQL one way or the other.

On the other hand, there is the business of MySQL, which is growing rapidly, thus rewarding the owners of the assets (currently Sun Microsystems).

Those two meanings of the term "MySQL" stand in a close mutually beneficial interaction with each other. But most importantly, this interaction is voluntary and cannot be directly controlled by the vendor.

What I mean is that the vast and free installed base of MySQL is using it of their own free choice, unencumbered by the vendor and under no obligation or restraint. That is the nature of open source. And conversely, the MySQL business is supporting the free installed base of MySQL (by improving the product) voluntarily and in the hope of deriving benefit from the installed base.

This is the paradox of an open-source business, and it took me a long time to truly understand how powerful a force it is. It is unlike any traditional business. The key point is that both the users and the vendors of open source are engaged in a powerful free-market dynamic that cannot be contained by any single entity.

It is in everybody's interest that the two sides of MySQL produce benefit for and derive benefit from each other. But neither group can mandate or control the other one. This is a core philosophy of open-source software and more generally of the "architecture of participation" (as defined by Tim O'Reilly). There is a mutually beneficial voluntary relationship, but there is no control by one group over the other. In more colloquial terms: the owners of MySQL cannot force MySQL users to pay up, and the nonpaying users cannot force the business to subsidize them.

Anyone acquiring the MySQL assets will therefore acquire an ability to control the business aspect, i.e., meaning how MySQL is licensed commercially, but only an opportunity (and no free reign) to derive benefit from the free user base.

This explains how the MySQL business can be valued highly in the market ($1 billion, when acquired by Sun in February 2008) while at the same time providing no way of controlling its installed base. This unusual relationship between market share and installed base is at the core of the topic. The market share is small but controllable, to some degree. The installed base is enormous but not controllable. The installed base is, and can be, hugely beneficial to the owner of MySQL, but only to the extent and for as long as this owner of MySQL enjoys the trust of the installed base.

To put it in numbers, it may be useful to see the usage of MySQL, as divided into three categories:

IBM on Monday is expected to release a new enterprise collaboration service based on its LotusLive cloud-based platform. The service comes with 1GB of storage and will cost $3.75 per user per month.

The new IBM LotusLive iNotes service is IBM's first real foray into a mass-market cloud-based service, including e-mail, calendaring, and contact management all designed to work with existing on-premise e-mail or operate as a standalone solution. Per user pricing will start at just $3 per month.

Realistically, the new IBM service isn't much different than you see from the likes of Google Apps or Yahoo--the big change is that it's coming from IBM, an enterprise stalwart. Whether you like Lotus Notes or not, this is big news as an endorsement of cloud computing and hosted applications.

Sean Poulley, vice president of IBM Cloud Collaboration Services, said customers have been looking for strategic versions of hosted solutions for a long time. The cloud approach of multitenancy means that the real cost of IT--the cost of running the applications--is reduced, bringing economies of scale to the offerings. IBM has been working on making the service secure and "enterprise ready," he said.

IBM's decision to start offering more cloud-based services is predicated on the notion that fewer people in IT organizations are carrying more responsibility. They are also more dependent on people outside of their organizations that need access to shared documents and files. On-premise collaboration applications can likely be manipulated to work in a shared manner, but LotusLive has been designed to work that way from the ground up.

When I asked why IBM would brand the new service as part of the Lotus family, Poulley said that more than half of the Fortune 100 companies use IBM collaboration technology that includes Lotus Notes and are well aware of the brand.

Internet Explorer rivals generally gained market share in figures from July, shown at top, and August.

(Credit: Net Applications)

After resetting its methodology to better account for global variations, Net Applications' browser usage statistics have resumed an earlier trend in which Internet Explorer's main rivals edged ahead.

Mozilla's Firefox had the most notable gain, from 22.5 percent to 23 percent, while Google's Chrome rose from 2.6 percent to 2.8 percent. Apple's Safari was flat at 4.1 percent, and IE dipped from 67.7 percent to 67 percent. Opera, in fifth place just before this week's release of Opera 10, was essentially flat at 2 percent.

The browser wars are back in full swing. Though IE remains dominant, rivals are racing to build in new features to make the Web a better foundation for applications--the vision Netscape had back in the first generation of browser wars of the 1990s. Only recently has Microsoft joined the HTML 5 discussion in earnest.

This time profitable powerhouses such as Google are pushing this Web applications facet of cloud computing, and even Microsoft is embracing the trend with an online version of Office en route. Using the browser and the Web to run applications has a lot more meat on its bones after a decade of work.

Microsoft is working to wean the world from IE 6, the version of the browser that shipped with Windows XP, and has made some progress, according to Net Applications' statistics.

Version 6 still rules the IE roost, but it's dropping in usage.

(Credit: Net Applications)

IE 8 usage increased from 12.5 percent to 15.1 percent usage from July to August, while IE 6 dropped from 27.2 percent to 25.3 percent. IE 7 decreased from 23.1 percent to 21.1 percent.

Mozilla's newer version 3.5 of Firefox, released in June, also made gains from 4.5 percent to 8.9 percent. Firefox 3.0 dropped from 16.2 percent to 12.5 percent.

Using a modern browser is important when it comes to bringing the Web application technology to fruition. Older browsers lack support for advancements in page layout and graphics, HTML features such as built-in video, and perhaps most crucially, fast execution of Web-based JavaScript programs.

Net Applications changed its methodology, with Apple faring worse in the new statistics and Opera and Chrome getting a boost. These figures are for July.

(Credit: Net Applications)

Apple's share of the installed base of Web browsers has plunged in half--but because of a methodology at a firm that produces the statistics rather than anything Apple or computer users did.

Net Applications, which compiles statistics based on the 160 million unique visits to a network of 40,000 Web sites using its analytics service, dramatically lowered Apple's browser share when the firm concluded its methodology needed refining. Specifically, the company concluded that there was a disconnect between visits to its site network and actual Web use in some areas such as China, said Vincent Vizzaccaro, executive vice president of marketing.

To try to better reflect reality, the company adjusted its statistics through use of the CIA's estimates of Internet population, according to its explanation. Consequently the company took a month to change course then released updated statistics from May and earlier that dramatically changed some figures.