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2013/06/03

| 06.03.13 | Windows 8.1 will make enterprises less blue, say analysts

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June 3, 2013
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Today's Top Stories

  1. Windows 8.1 will make enterprises less blue, say analysts
  2. Cisco continues to dominate enterprise router market, says Infonetics
  3. Verizon deploys 100GE technology to meet enterprise cloud, video demand
  4. Cisco, Polycom, Logitech's LifeSize lead healthcare videoconferencing market
  5. HP, IBM battle for lead in shrinking server market, says IDC

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Spotlight On... Spotlight: Avaya unveils new outbound contact center platform
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Today's Top News

1. Windows 8.1 will make enterprises less blue, say analysts

By Fred Donovan Comment | Forward | Twitter | Facebook | LinkedIn

Enterprises are likely to embrace changes being made in Microsoft's (Nasdaq: MSFT) Windows 8.1 update, also known as Windows "Blue," which is shipping at the end of June, according to a number of analysts.

Windows 8.1 will enable users to boot directly to the classic Windows desktop, bypassing the tile-based Windows 8 screen, and will restore the Start button to the desktop screen, according to analysts cited in a Computerworld report.   

Patrick Moorhead, principal analyst at Moor Insights & Strategy, believes these changes will be sufficient to convince enterprises to deploy Windows 8.

"By putting the Start button on the desktop, and offering boot-to-desktop as well, Microsoft is removing the major objections of enterprises to Windows 8. The basic objection is that Windows 8 requires [employee] retraining, but with those in place, you won't have to retrain," Moorhead was quoted by Computerworld as saying.

Moorhead predicts that enterprises will start testing Windows 8 after the launch of the update and deploy Windows 8.1 in 2014.

Wes Miller with Directions on Microsoft, an independent Microsoft licensing service, agrees with Moorhead.

The update will "possibly help corporations or businesses that may have hesitated. It may be enough for some to skip Windows 7 and upgrade straight to Windows 8. It may be enough of a change that they look at that. If so, it would be a huge win for Microsoft," Miller was quoted by the report as saying.

Others are skeptical that anything can get enterprises to adopt Windows 8. Forrester Research judged that IT departments are considering skipping Windows 8 altogether. Those enterprises still using Windows XP are focused on migrating to Windows 7 as the end of life of Windows XP nears.

Windows 8 is unlikely to become an "enterprise standard," according to Forrester, for the following reasons: Enterprise interest in Windows 8 is only at half the level that Windows 7 was at the same point after its launch; IT does not see Windows 8 as an improvement; IT sees iOS, not Windows 8, as the preferred tablet OS; interest in Apple and Android will remain high among influential employees; and Windows 8 does not offer firms enough savings to make deployment a top priority.

Forbes contributor Adrian Kingsley-Hughes agrees. After talking with a number of IT decision makers, he found that "most businesses aren't in the mood to do sweeping upgrades after already having made the switch to Windows 7."

For more:
- read the Computerworld report
- see the Forrester release
- read the Forbes article

Related articles:
IT sees few advantages, increased costs in deploying Windows 8
Enterprises not interested in Windows 8, says Wall Street analyst
Gartner predicts slow uptake in Windows 8 enterprise use

Read more about: Microsoft, Windows 7
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2. Cisco continues to dominate enterprise router market, says Infonetics

By Fred Donovan Comment | Forward | Twitter | Facebook | LinkedIn

Cisco (Nasdaq: CSCO) took close to three-quarters of enterprise router revenues in the first quarter of 2013, jumping 1.2 percent, according to the latest stats from Infonetics Research.

HP (NYSE: HPQ) gained 1 percent in enterprise router market share, reaching 6.3 percent. Other firms tracked by Infonetics include Adtran (Nasdaq: ADTN), Alcatel-Lucent (NYSE: ALU), Huawei, Juniper Networks (NYSE: JNPR), NEC, OneAccess and Yama.

Overall, the enterprise router market experienced a 4 percent year-over-year decline and a 5 percent sequential decline, posting $833 million in revenue for the first quarter.

"Seasonality tends to drive down first quarter revenue for enterprise routers, but the first quarter of 2013 came in weaker than expected," noted Matthias Machowinski, directing analyst for enterprise networks and video at Infonetics Research.

"On the bright side, North America bucked the downward trend and posted both sequential and year-over-year growth in enterprise router revenue, and China is the fastest growing region," he added.

Cisco also led the way in the 100 gigabit Ethernet (GE) switch market, which experienced 1 percent year-over-year revenue growth in the first quarter to $4.7 billion.

At the same time, 100GE port shipments fell 4 percent in the first quarter, as did 10G port shipments; 40G port shipments saw 2 percent sequential growth in the quarter, driven by 40G fixed switches and 40G line cards on chassis switches.

"While we saw the usual first quarter seasonal dip in Ethernet switch sales... overall growth has strengthened over the past three quarters, a positive sign given continuing weakness in Europe and lower spending by the U.S. federal government," noted Machowinski.

Carriers like Verizon (NYSE: VZ) are increasing deployments of 100GE technology to meet enterprise demand for cloud and video services (see related story).

For more:

- see Infonetics Research's releases on the enterprise router and 100GE switch markets

Related articles:
Verizon deploys 100GE technology to meet enterprise cloud, video demand
Cisco captures three-quarters of the enterprise router market, says Infonetics
Dell'Oro: Cisco, Juniper duke it out at top of 100 Gigabit Ethernet router market

Read more about: Cisco, Alcatel-Lucent
back to top



3. Verizon deploys 100GE technology to meet enterprise cloud, video demand

By Fred Donovan Comment | Forward | Twitter | Facebook | LinkedIn

Verizon (NYSE: VZ) is beefing up its global IP network by deployed 100 gigabit Ethernet (GE) technology to the edge routers of its Private IP network to give enterprises faster speeds and increase bandwidth for cloud and video services.

Enterprise cloud services are on the rise, with three-quarters of enterprises recently surveyed by cloud management firm RightScale saying they are adopting cloud computing.

The 100GE technology is designed to provide enterprises with the bandwidth and speed needed to access data securely at remote storage locations as more applications and data are moved to the cloud, Verizon explained in a release.

The carrier's Private IP service provides the foundation for communication and business process automation for e-commerce, shared corporate intranets and extranets and video applications.

Verizon said it will put the 100GE technology on the same U.S. and European routes where its 100G long-haul networks are deployed.

"The increase in demand for cloud and data center connectivity is driving the decision to expand our service offering to higher speeds in order to meet the bandwidth needs of our customers by providing reliable, high-performance and secure services," said Ihab Tarazi, vice president of product technology at Verizon.

Verizon is also standardizing its 1GE and 10GE access services for its private IP network, which means faster ordering and delivery of services.

In an interview with sister publication FierceTelecom, Tarazi said that as a result of the upgrade, Verizon will now offer performance service level agreements and class of service to its enterprise customers for video and cloud services.

"What we're doing with video is we're now guaranteeing the application performance not just the traffic. We did that a long time ago with voice and now we're doing it with video on Private IP," Tarazi told FierceTelecom.

For more:
- see Verizon's release
- check out the RightScale survey

Related articles:
Verizon's 100GE Private IP ups reliability for business cloud, video services
Spotlight: Three-quarters of enterprises are adopting cloud, says survey

Read more about: Verizon
back to top



4. Cisco, Polycom, Logitech's LifeSize lead healthcare videoconferencing market

By Fred Donovan Comment | Forward | Twitter | Facebook | LinkedIn

Cisco (Nasdaq: CSCO), Polycom and Logitech's (Nasdaq: LOGI) LifeSize are leading the telemedicine movement by providing videoconferencing capabilities to healthcare organizations, according to research firm TechNavio.

The healthcare videoconferencing market is forecast by the research firm to increase at a compound annual growth rate (CAGR) of 18 percent through 2016, reaching close to $2 billion in revenue by then.

Videoconferencing vendors face a number of challenges in providing telemedicine capabilities, particularly in rural areas. These include the lack of reliable Internet connections and the need for high-bandwidth infrastructure, TechNavio explained.

One way to overcome these challenges is for vendors to use cloud services. "By using cloud-based platforms, enterprise video providers are introducing the concept of video telecommunication as a service for end users," related TechNavio in a blog post.

"Each participant is required to send the request to the server and as the server accepts the request, the streaming of the video is initiated. This provides the end users with low investment, fewer technical requirements, and less bandwidth requirement," the post explained.

In addition to telemedicine applications, the healthcare videoconferencing market will be spurred by the use of videoconferencing for medical education, the integration of social networking into patient care and improvements in high-definition video applications.

The TechNavio blog post concluded: "[I]t will be hard for the market to reach its full potential until the issue of rural availability is addressed, but still the advantages of video telecommunication in other healthcare sectors will surely be enough to keep the industry growing in the meantime."

Polycom recently announced alliances with robotics firm Anybots and patient monitoring company Vivify Health to develop new healthcare videoconferencing products. With Anybots, Polycom developed video-enabled robots that can be remotely controlled by medical personnel. With Vivify Health, Polycom developed mobile videoconferencing apps that integrate with healthcare information systems by gathering data from the patient and from medical devices and sending that data to caregivers.

"With collaborative video solutions, you can address access, prevention and wellness, and continuation of care, all of which becomes important as we try to tackle the problem of unnecessary rehospitalizations," said Deborah Jeffries, director of global healthcare marketing at Polycom.

For more:
- check out TechNavio's blog post
- see the Polycom announcement

Related articles:
Hospital uses Wi-Fi triangulation for in-house app
Wireless M2M market to generate nearly $136 billion in revenues by 2018, says report
Polycom gets chilly reception in enterprise videoconferencing market

Read more about: Cisco
back to top



5. HP, IBM battle for lead in shrinking server market, says IDC

By Fred Donovan Comment | Forward | Twitter | Facebook | LinkedIn

HP (NYSE: HPQ) and IBM (NYSE: IBM) are vying for the lead in a shrinking server market, according to two reports released last week, one by IDC and the other by Gartner.

According to first quarter stats from IDC, HP held on to the lead position in the worldwide server market, which is experiencing a multi-year revenue decline.

HP secured 26.9 percent of the server factory revenues in the first quarter, followed closely by IBM with 25.5 percent and Dell (Nasdaq: DELL) with 18.5 percent. Dell was the only one of the top three to experience year-over-year revenue growth in the first quarter.

Fujitsu followed with 5.1 percent of the first quarter revenues, Oracle (Nasdaq: ORCL) was next with 4.8 percent and Cisco (Nasdaq: CSCO) grabbed 4.1 percent of factory revenue. IDC considered them to be in a statistical tie for fourth place.

Overall, the worldwide server market has been on a multi-year decline, with revenues dropping five times over the last six quarters, according to IDC. Factory revenue declined 7.7 percent year-over-year in the first quarter, down to $10.9 billion. Server unit shipments slipped 3.9 percent year-over-year to 1.9 million units.

Matt Eastwood, group vice president and general manager for enterprise platforms at IDC, attributed the server market decline to ongoing server consolidation, technology transitions and difficult macroeconomic conditions globally.

"It is clear that challenging market conditions are increasing the competitive dynamics for server market share globally, particularly since compute represents a critical element of larger IT transformations that continue to reshape broader enterprise IT market opportunities," Eastwood added.

Gartner also found that server revenue and unit shipments declined, 5 percent and 0.7 percent respectively, in the first quarter. Revenue totaled $11.8 billion, and shipments equaled 2.3 million units.

However, Gartner put IBM in the lead in terms of server revenue, with 25.5 percent of the market, followed closely by HP at 25 percent, Dell with 18 percent, Fujitsu with 4.9 percent and Oracle with 4.6 percent.

"Following a challenging 2012, 2013 started in very much the same way. Budgets are restricted and server infrastructure spending is clearly not the highest priority for many organizations," said Adrian O'Connell, research director at Gartner.

For more:
- see IDC's stats
- check out Gartner's figures

Related articles:
CIOs to cut spending on communications equipment, increase software investment, says Forrester
TechNavio: Close to three-quarters of enterprise server workloads will be virtualized by 2014
IBM edges out HP for pole position in HPC server market

Read more about: Dell
back to top



Also Noted

This week's sponsor is Kony Solutions.

eBook | Enterprise Apps: Maximizing Productivity, Minimizing Risk

While mobile applications can facilitate greater work efficiency, there are numerous security risks involved with employees downloading third party apps. This has led many enterprises to develop their own internal mobile applications. Learn more today.


SPOTLIGHT ON... Spotlight: Avaya unveils new outbound contact center platform

Avaya unveiled on Monday a new management platform for mid-sized contact centers to increase the number of customers representatives can reach on the phone. The product is designed for contact centers with between 25 and 250 agents and up to 500 trunks. Avaya Outbound Contact Express uses call detection and predictive and preview dialing algorithms to lower the cost per call to reach customers, the company said. The majority of outbound contact centers deal with bill collections, Mark Monday, vice president of product management for collaboration platforms at Avaya, told FierceEnterpriseCommunications. Read more.

> Alaska Communications extends hosted VoIP service to Southcentral Alaska. Article (FierceTelecom)

> Fixed broadband subscribers to hit 940 million by 2018. Article (Total Telecom)

> Google exec sees Google Fiber as a 'moneymaker.' Article (CNET)

> Intel kicks off Haswell shipments with quad-core Core processors. Article (Network World)

> Tips for using VoIP at your business. Article (KTAR)

And finally… The electronic wastebasket of the world. Article (CNN International)

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