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    Wednesday, September 7, 2011

    CNN - Are jobs obsolete?

    Sent from Rjjsjr@yahoo.com's mobile device from http://m.cnn.com.

    Are jobs obsolete?


    The U.S. Postal Service appears to be the latest casualty in digital technology's slow but steady replacement of working humans. Unless an external source of funding comes in, the post office will have to scale back its operations drastically, or simply shut down altogether. That's 600,000 people who would be out of work, and another 480,000 pensioners facing an adjustment in terms.

    We can blame a right wing attempting to undermine labor, or a left wing trying to preserve unions in the face of government and corporate cutbacks. But the real culprit -- at least in this case -- is e-mail. People are sending 22% fewer pieces of mail than they did four years ago, opting for electronic bill payment and other net-enabled means of communication over envelopes and stamps.

    New technologies are wreaking havoc on employment figures -- from EZpasses ousting toll collectors to Google-controlled self-driving automobiles rendering taxicab drivers obsolete. Every new computer program is basically doing some task that a person used to do. But the computer usually does it faster, more accurately, for less money, and without any health insurance costs.

    We like to believe that the appropriate response is to train humans for higher level work. Instead of collecting tolls, the trained worker will fix and program toll-collecting robots. But it never really works out that way, since not as many people are needed to make the robots as the robots replace.

    And so the president goes on television telling us that the big issue of our time is jobs, jobs, jobs -- as if the reason to build high-speed rails and fix bridges is to put people back to work. But it seems to me there's something backwards in that logic. I find myself wondering if we may be accepting a premise that deserves to be questioned.

    I am afraid to even ask this, but since when is unemployment really a problem? I understand we all want paychecks -- or at least money. We want food, shelter, clothing, and all the things that money buys us. But do we all really want jobs?

    We're living in an economy where productivity is no longer the goal, employment is. That's because, on a very fundamental level, we have pretty much everything we need. America is productive enough that it could probably shelter, feed, educate, and even provide health care for its entire population with just a fraction of us actually working.

    According to the U.N. Food and Agriculture Organization, there is enough food produced to provide everyone in the world with 2,720 kilocalories per person per day. And that's even after America disposes of thousands of tons of crop and dairy just to keep market prices high. Meanwhile, American banks overloaded with foreclosed properties are demolishing vacant dwellings to get the empty houses off their books.

    Our problem is not that we don't have enough stuff -- it's that we don't have enough ways for people to work and prove that they deserve this stuff.

    Jobs, as such, are a relatively new concept. People may have always worked, but until the advent of the corporation in the early Renaissance, most people just worked for themselves. They made shoes, plucked chickens, or created value in some way for other people, who then traded or paid for those goods and services. By the late Middle Ages, most of Europe was thriving under this arrangement.

    The only ones losing wealth were the aristocracy, who depended on their titles to extract money from those who worked. And so they invented the chartered monopoly. By law, small businesses in most major industries were shut down and people had to work for officially sanctioned corporations instead. From then on, for most of us, working came to mean getting a "job."

    The Industrial Age was largely about making those jobs as menial and unskilled as possible. Technologies such as the assembly line were less important for making production faster than for making it cheaper, and laborers more replaceable. Now that we're in the digital age, we're using technology the same way: to increase efficiency, lay off more people, and increase corporate profits.

    While this is certainly bad for workers and unions, I have to wonder just how truly bad is it for people. Isn't this what all this technology was for in the first place? The question we have to begin to ask ourselves is not how do we employ all the people who are rendered obsolete by technology, but how can we organize a society around something other than employment? Might the spirit of enterprise we currently associate with "career" be shifted to something entirely more collaborative, purposeful, and even meaningful?

    Instead, we are attempting to use the logic of a scarce marketplace to negotiate things that are actually in abundance. What we lack is not employment, but a way of fairly distributing the bounty we have generated through our technologies, and a way of creating meaning in a world that has already produced far too much stuff.

    The communist answer to this question was just to distribute everything evenly. But that sapped motivation and never quite worked as advertised. The opposite, libertarian answer (and the way we seem to be going right now) would be to let those who can't capitalize on the bounty simply suffer. Cut social services along with their jobs, and hope they fade into the distance.

    But there might still be another possibility -- something we couldn't really imagine for ourselves until the digital era. As a pioneer of virtual reality, Jaron Lanier, recently pointed out, we no longer need to make stuff in order to make money. We can instead exchange information-based products.

    We start by accepting that food and shelter are basic human rights. The work we do -- the value we create -- is for the rest of what we want: the stuff that makes life fun, meaningful, and purposeful.

    This sort of work isn't so much employment as it is creative activity. Unlike Industrial Age employment, digital production can be done from the home, independently, and even in a peer-to-peer fashion without going through big corporations. We can make games for each other, write books, solve problems, educate and inspire one another -- all through bits instead of stuff. And we can pay one another using the same money we use to buy real stuff.

    For the time being, as we contend with what appears to be a global economic slowdown by destroying food and demolishing homes, we might want to stop thinking about jobs as the main aspect of our lives that we want to save. They may be a means, but they are not the ends.

    The opinions expressed in this commentary are solely those of Douglas Rushkoff.

    Wednesday, August 31, 2011

    Reuter site - Financial Times pulls its apps from Apple store

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    Financial Times pulls its apps from Apple store

    Wed, Aug 31 16:18 PM EDT

    LONDON (Reuters) - The Financial Times has pulled its iPad and iPhone apps from Apple's App Store after losing a battle to keep control of customer data obtained through subscriptions.

    Apple has recently begun to insist that subscriptions to apps that it hosts must go through its own store, giving Apple ownership of valuable data about customers from those transactions, as well as a 30 percent cut of revenues.

    The Pearson-owned FT and Apple had been in negotiations for months but ultimately failed to reach a compromise, an FT spokesman said Wednesday.

    Apple launched its own subscription service for magazines, newspapers, videos and music earlier this year but has won little support from major publishers.

    The iPad tablet computer, launched a year and a half ago, created a new market popular with affluent professionals and has been a major driver of new subscriptions to FT.com, which now accounts for about a quarter of the FT's total sales.

    The FT's digital subscriptions rose 34 percent to 230,000 in the first half of this year, with mobile devices accounting for 22 percent of FT.com traffic and more than 15 percent of new subscriptions.

    In a move to reduce its dependence on Apple and develop apps more quickly for rival tablet computers, the FT in June launched a Web-based version of its mobile app, the first of its kind by a major publisher.

    This allows readers to sign up on an FT website and then sign on any device, including the iPad and iPhone through Apple's Safari browser.

    A shortcut can be installed on the device, giving an experience similar to using a native app custom-built for the smartphone or tablet being used.

    A version for Google's latest Android platform, which is widely used for smartphones and tablet computers including Samsung's Galaxy Tab, is expected in September or October.

    An FT spokesman said the company was encouraging subscribers to migrate to the Web-based app, which uses the open HTML5 standard that can be read by any browser, and is already being used by most mobile subscribers.

    The spokesman described the disagreement with Apple as "amicable" and said the FT still planned future apps for the Apple App Store including one for the FT's luxury weekend magazine 'How To Spend It' as early as September.

    This would be funded by advertising, however, not subscriptions, so there would be no conflict with Apple over who owns the subscriber data.

    (Reporting by Georgina Prodhan; Editing by Greg Mahlich)

    Monday, August 22, 2011

    Image of Daniel Domsheit-Berg, (formerly of wikileaks, now with openleaks)

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    Reuter site - Some of WikiLeaks' Bank of America data destroyed

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    Some of WikiLeaks' Bank of America data destroyed

    Mon, Aug 22 13:53 PM EDT

    By Mark Hosenball

    WASHINGTON (Reuters) - Some internal Bank of America files obtained by WikiLeaks have been destroyed, according to a former close collaborator of Julian Assange, the whistleblowing website's founder.

    In an email to Reuters, Daniel Domscheit-Berg, who last year was fired by Assange as WikiLeaks' co-spokesman, confirmed that he had destroyed "roundabout" 3,000 submissions WikiLeaks received related to Bank of America.

    Domscheit-Berg said that he had decided to destroy the material "in the interest of the security of sources." In the past he had alleged that the source-protection system used by WikiLeaks under Assange's stewardship was inadequate.

    Domscheit-Berg, who has been working on the creation of a rival to WikiLeaks called OpenLeaks, said that the Bank of America material which he destroyed was sent to WikiLeaks between January 2010 and September 2010. In September 2010 Assange ousted Domscheit-Berg, who then used the pseudonym "Daniel Schmitt", as one of WikiLeaks' principal frontmen.

    Domscheit-Berg said that the 3,000 Bank of America submissions that he destroyed consisted of "about 10-15% documents and the rest random junk people sent in." He did not characterize the destroyed material's content further.

    But Domscheit-Berg also said that he did not destroy Bank of America material obtained by WikiLeaks before last year. He said that Assange first claimed to have obtained leaks from inside Bank of America in October 2009. Domscheit-Berg said he never had control over such files and did not destroy them.

    Larry Di Rita, a Bank of America spokesman, said: "We don't know what they claim to have had, and we have no comment on what they allegedly may have destroyed."

    The destruction of the documents could provide a small amount of relief to Bank of America investors. The bank's stock dropped 3 percent in November amid fears the bank could be the target of WikiLeaks' next document release. In recent weeks investors have pummeled Bank of America's stock on fears it may need to raise outside capital to absorb losses.

    Assange did not immediately respond to an email requesting comment. However, in a flurry of messages posted on its Twitter feed over the weekend, WikiLeaks said that it could confirm that the data Domscheit-Berg claimed to have destroyed "included five gigabytes from the Bank of America."

    The WikiLeaks Twitter feed, which Assange is believed to control personally, also said that Domscheit-Berg had destroyed a copy of "the entire US no-fly list," "US intercept arrangements for over a hundred internet companies," and leaks from inside "around 20 neo-Nazi organizations."

    It is unclear from the statements by WikiLeaks and Domscheit-Berg whether WikiLeaks and Assange still have any Bank of America files under their control.

    In an October 2009 interview with the Computerworld website, Assange said that he was "sitting on 5GB from Bank of America, one of the executive's hard drives." Five gigabytes is precisely the size of the data cache that the WikiLeaks Twitter feed now claims that Domscheit-Berg destroyed.

    However, Domscheit-Berg told Reuters he only destroyed material which WikiLeaks received months after Assange gave the interview to Computerworld. But he also said that when he and Assange were still collaborators, Assange once accused him of stealing the pre-October 2009 Bank of America material.

    Domscheit-Berg said that because WikiLeaks' pre-2010 system for receiving data was poorly built, it was, in his view, possible that Assange no longer had any Bank of America material under his control.

    Assange at one point claimed publicly that WikiLeaks had material which could "take down a bank or two".

    Saturday, August 20, 2011

    Reuter site - Verizon strike to end but talks to continue

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    Verizon strike to end but talks to continue

    Sat, Aug 20 15:36 PM EDT

    By Sinead Carew

    NEW YORK (Reuters) - About 45,000 Verizon Communications employees are set end a two-week strike and return to work by Tuesday after the telephone company and unions said they reached an agreement to resume bargaining.

    Almost half of the workers in Verizon's wireline business went on strike on August 7 after talks for a new labor pact failed when their contract expired.

    Under the latest agreement, reached early on Saturday morning, Verizon promised to extend the terms of the old contract indefinitely while it continues bargaining for a new one with unions representing technicians and customer service workers.

    Workers will start to head back to work for late shifts on Monday night and the rest of the striking workers will show up to their jobs on Tuesday, one of the unions said.

    Neither side would provide details about how the agreement was reached, but both sides continued to nip at each other.

    Tens of thousands of Verizon managers were asked to work 12 hours a day for six days a week and many worked more than that to cover for the strikers, said Verizon spokesman Richard Young. Verizon said its management team's work helped "convince the unions to begin bargaining with us in good faith."

    "The fortitude and efforts of our managers have proven to be our strongest point of leverage in bargaining," Marc Reed, Verizon's executive vice president of human resources, said in a statement.

    The Communications Workers of America said it was "outraged" by the company's comments, and demanded a retraction.

    "It is both inaccurate and insulting," the CWA said in a statement. "We agreed with management not to claim victory in changing the process, reinstituting the contract or shaping our goals. We will be prepared to fight and fight hard whenever necessary if Verizon believes it can resume negotiations on that basis."

    The agreement to continue talks follows an announcement by the company last week that healthcare benefits would expire on August 31 for workers who were still on strike at the time.

    This would have affected 35,000 workers represented by the Communications Workers of America, and another 10,000 members of The International Brotherhood of Electrical Workers in nine states and the District of Columbia.

    BITTER DISPUTE

    The decision to end the strike came after the unions and the company were able to agree on a structure and focus for bargaining on key issues such as jobs, employment security and financial issues such as healthcare contributions and pensions, according to CWA President Larry Cohen.

    Cohen told Reuters that the issues on the table are complicated and will "take some time" to work out but he said the union was looking forward to the joint process.

    "We would both say that this focus is much better than it was two weeks ago," Cohen said.

    The striking workers are in Verizon's wireline business which provides telephone, Internet and television services.

    Verizon is looking to cut costs in this business, which has been declining for years as consumers have been hanging up home phones in favor of cellphones and Internet services.

    But the unions had argued that Verizon was looking for too many concessions in areas such as healthcare contributions, pensions and work rules.

    Verizon said it had made headway with negotiating a "number of local and regional" issues with the unions.

    The dispute quickly turned bitter as Verizon complained of network sabotage on the second day of the strike while the unions said picketers were injured by vehicles driven by Verizon managers covering for the strikers.

    Both sides also swapped complaints at the National Labor Relations Board.

    Cohen said the problems facing the strikers went beyond Verizon and its workers. He argued that there should be some kind of national framework for workers healthcare and bargaining rights.

    "I don't really blame Verizon leadership for this problem," he said. "It's the nation."

    (Additional reporting by Mark Weinraub in Chicago; editing by Vicki Allen and Sandra Maler)

    Friday, August 19, 2011

    Reuter site - Autonomy/HP deal spotlights data deluge

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    Autonomy/HP deal spotlights data deluge

    Fri, Aug 19 09:11 AM EDT

    LONDON (Reuters) - Hopes Hewlett-Packard's $11.7 billion bid for Autonomy will be the first of many in the European software industry could be misplaced because Autonomy has an appeal that others cannot match.

    Shares in European software makers jumped in a falling market on Friday after news of the deal.

    But analysts said Autonomy has a one-off appeal through its enterprise search software, which helps companies unravel and connect vast quantities of complex and varied data like video, pictures and emails.

    Investigators use it to track people it suspects of terrorism and to probe complex white-collar fraud, and information companies put it to work connecting news and data.

    Other European market leaders such as SAP or Nokia offer more traditional products in slower-growing markets.

    "Traditionally structured data, such as that in rows and columns generated by industry through products such as those offered by SAP and Oracle, is becoming less of a focus," said Tim Daniels of brokerage Olivetree Securities.

    "Traditional search software isn't intelligent enough to sort through unstructured data in a speedy fashion -- it is unable to understand the contents of a video or a music track," added technology, media and telecoms strategist Daniels.

    BURGEONING DATABANKS

    The amount of data in the world is doubling every two years and is expected to reach 1.8 zettabytes this year, equivalent to every global citizen having 215 million high-resolution MRI scans every day, according to IT research firm IDC.

    This has created a market for so-called "big data" and high demand for hardware and especially software that can store, process and make sense of it.

    HP has agreed to buy Autonomy in a strategy change that will also see it spin off its personal computer business, the world's largest, beginning a reinvention of itself as a higher-margin, software-focused business.

    Shares in companies unrelated to "big data" rose on the back of the news. Germany's Software AG rose 1.5 percent, Swiss computer-mouse maker Logitech rose 2.9 percent and Finnish cellphone maker Nokia rose 1.9 percent.

    Rajeev Bhal, software analyst at British financial services firm Matrix Group, said he saw British IT company Micro Focus and Swiss banking software maker Temenos as likely targets for specific reasons.

    Micro Focus shares rose 2.4 percent on Friday, while Temenos rose 4.7 percent

    "We continue to see Micro Focus (BUY, 420p TP) as a likely bid candidate given multiple approaches already in place and the attractive valuation," Bhal wrote.

    "Temenos has a strong product and routinely tops industry league tables for new customer wins, and has demonstrated in the past its ability to recover from setbacks."

    Bhal said he saw Software AG and British accounting software maker Sage, as "red herrings."

    British financial software maker Misys has also been the object of bid interest, and its shares rose 5.1 percent on Friday.

    Shares in British chip designer ARM, which like Autonomy is part of a technology cluster in the English university town of Cambridge, also rose 2.9 percent.

    One London-based technology banker who asked not to be named said he did not expect more multi-billion-pound technology deals to emerge in Europe on the back of the Autonomy-HP deal because of a "dearth of targets."

    "For the few potential larger deals, eyes will be on SAP and maybe ARM. Think IBM and Oracle," he said.

    But the banker added: "SAP has been more of a consolidator, however, and ARM is expensive and independently minded.

    (Reporting by Victoria Howley and Georgina Prodhan; Editing by Andrew Callus)

    Reuter site - Instant view: HP plans PC exit, Autonomy buy; cuts outlook

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    Instant view: HP plans PC exit, Autonomy buy; cuts outlook

    Fri, Aug 19 04:49 AM EDT

    NEW YORK (Reuters) - Hewlett-Packard said on Thursday it is considering a sale or spinoff of its personal computer unit, will halt production of its webOS devices such as the TouchPad, and agreed to buy British software firm Autonomy Corp for $10.2 billion.

    At the same time, it reported fiscal third-quarter earnings earlier than expected, and lowered its full-year financial forecasts. The following is immediate reaction from investors and analysts.

    PETER MISEK, ANALYST, JEFFERIES & CO

    "It's not sustainable what was going on. We think they had to act. They're going to get leaner and meaner to get faster."

    "It makes a ton of sense for them to exit as much as possible the consumer business. The consumer has become massively competitive, commoditized, and frankly Apple is the only one that's shown it can make money in the space."

    AVI GREENGART, ANALYST, CURRENT ANALYSIS

    "(WebOS) was a great operating system. Everybody was pulling for it but a lot of people weren't buying it."

    "It's hard to compete against not just Apple but the ecosystem Apple has built which includes apps content and services. There were also a lot of missteps such as launching it (the TouchPad) a month before it was ready and pricing it the same as the iPad 2."

    "HP is really following the IBM model of becoming a services business and selling off your PC."

    "If they spin (WebOS) out with the IP it could be very interesting for a company like HTC."

    "If Google keeps Motorola and gives it a competitive advantage over other Android licenses, one of those licensees may want to hedge their bets by buying WebOS."

    MILAN RADIA, ANALYST, JEFFERIES & CO (LONDON)

    "It was inevitable that one of the big guys would come in and buy Autonomy, the question was timing. It's a large bite in the current market environment for anyone."

    "Autonomy is an inevitable acquisition target because of its unique position in unstructured data -- there's not an obvious rival and there's strong growth in the unstructured data market."

    "The challenge for HP would be to deliver a knock-out blow. $10 billion is 25 times 2012 predicted earnings, which is a good price after recent falls in Autonomy's shares, but it would not be deemed an excessive valuation."

    "There's no reason why any of the big four or five names should not be interested."

    SHEBLY SEYRAFI, ANALYST, FBN SECURITIES

    "Without saying so, (HP) is saying 'I want to be more like IBM'. What did IBM do many years ago? They divested their PC business and they got more involved in software."

    "The PC industry is a very challenged one because of the slow growth in that sector. For those companies like HP which don't' have a strong tablet offering, they are victims of the encroachment of Apple's iPads and tablets on their notebook business. So they're vulnerable to losing share."

    "Leo was brought over partly because they wanted HP to get more involved in software. So what he's doing is basically considering spinning off a hardware related business and getting more involved in software. Therefore this Autonomy acquisition is part of that strategy. Analytics is a hotter segment in the software area."

    "This webOS discontinuing is sad but necessary. They were fighting a losing battle. The winners were already decided before they even launched their TouchPad in the marketplace, and the winners are android and (Apple's) iOS."

    BRIAN WHITE, ANALYST, TICONDEROGA SECURITIES

    "Although results are in-line with our estimates, the company's fourth-quarter outlook is well below our projections and the Street."

    "Despite weakness in the stock on this announcement, we still advise investors to stay on the sidelines as we believe more bad things could be lurking around the corner."

    RAJEEV BAHL, CO-HEAD OF RESEARCH, SOFTWARE & IT SERVICES, MATRIX GROUP

    On potential bids for Autonomy:

    "Would expect both IBM and Oracle to take a good look at Autonomy. For HP it seems a less natural move given their lack of a database or enterprise content platform."

    "For IBM, Autonomy fits well as a piece of their infrastructure offering alongside Cognos and DB2, for Oracle (an existing Autonomy OEM) it expands their market reach significantly into the unstructured data world."

    "Autonomy's SPE product (which extends Autonomy's unstructured data capabilities into structured data) would be a hook for both companies."

    KIM FORREST, ANALYST, FORT PITT CAPITAL GROUP

    "None of this should be surprising, in light of what's happening to the consumer with respect to the amount and the type of PCs they're buying and also the fact that even before Leo (Apotheker, the new CEO) took over, the company had been moving more into software and services, specifically targeted at businesses."

    "You know that consumer PCs is the thing that's dragging that segment down. Because people aren't willing to pay up. They want the sexy iPad. And they may need a cheap PC, but they're not willing to pay up. All consumers seem to have eyes for is the iPad."

    On Autonomy: "I think it's a move for the future, but I don't think it's going to be a boost to the bottom line immediately."

    (Reporting by Alexei Oreskovic in San Francisco, Sinead Carew in New York, Paul Sandle in London)

    Thursday, August 18, 2011

    Reuter site - RIM near BlackBerry music service launch: sources

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    RIM near BlackBerry music service launch: sources

    Thu, Aug 18 20:51 PM EDT

    By Yinka Adegoke and Alastair Sharp

    NEW YORK/TORONTO (Reuters) - BlackBerry maker Research In Motion is close to rolling out its own music streaming service that will work across its mobile devices, according to four people familiar with the plans.

    The new service is likely part of an attempt by RIM to improve its BlackBerry Messenger service as it competes with the mobile media platform strengths of rival Apple Inc and Google Inc's Android.

    RIM is in late-stage negotiations with major labels, including Vivendi SA's Universal Music Group, Sony Corp's Sony Music, Warner Music Group and EMI Group. The new service is expected to be announced by Labor Day in the United States, September 5.

    RIM has been enhancing its BlackBerry Messenger offering, popularly known as BBM, since announcing its "social platform" at last September's DevCon event where it unveiled the PlayBook tablet computer.

    A RIM spokeswoman declined comment on the report but said BBM is one of the largest mobile social networks in the world.

    RIM's BlackBerry smartphones have been hit by a sharply declining market share in the United States, even as the company has expanded sales in other parts of the world, partly because of BBM's popularity.

    Analyst Matthew Thornton at Avian Securities said he doubted the music service would attract new users but might help the company keep its existing BlackBerry customers interested.

    "I just don't think trying to replicate Apple is really going to change their situation near term," he said.

    "For RIM it's going to be the new OS 7 product first and foremost ... and then it's about QNX and making that transition."

    RIM has just launched an updated operating system on three new touchscreen devices intended to catch up with the technical specifications of Android and other rivals. The company plans to launch the first BlackBerrys using the QNX software, used on its PlayBook tablet, early next year.

    The PlayBook comes loaded with the music store of 7digital, half-owned by HMV. 7digital's store includes some 13 million tracks, and purchases made via a PlayBook can be moved to other devices.

    BlackBerry smartphones do not offer a RIM-enabled way to buy music, although audio and other files can be loaded onto the devices from a computer.

    BlackBerry users can also download music apps from RIM's store, including Slacker, Rhapsody and Pandora.

    The Waterloo, Ontario-based company says some 45 million people use BBM, which allows BlackBerry users with data plans to pass text messages, pictures and other files to each other without incurring charges from their network carrier -- 70 percent of them use it daily.

    Its latest version allows independent developers to incorporate BBM into their applications, meaning users can stay in a news, sports or games app while sharing it with their BBM contacts.

    BBM is touted as a major attraction for younger BlackBerry users and customers in emerging markets because of its lower cost and immediacy. The service runs over RIM's proprietary network and tells a sender when a message has been received at the other end.

    RIM's shares closed 3.8 percent lower on Thursday at $25.76 on Nasdaq and down 3 percent at C$25.49 in Toronto. The stock has lost more than half its value since the start of the year.

    ($1=$0.99 Canadian)

    (Editing by Gerald E. McCormick, Robert MacMillan and Rob Wilson)

    Reuter site - HP may drop PCs, to buy Autonomy for $11.7 billion

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    HP may drop PCs, to buy Autonomy for $11.7 billion

    Thu, Aug 18 21:47 PM EDT

    By Poornima Gupta and Paritosh Pansal

    SAN FRANCISCO/NEW YORK (Reuters) - Hewlett-Packard Co may spin off the world's largest PC business, part of a wrenching series of moves away from the consumer market, including killing its new tablet and buying British software company Autonomy Corp for as much as $11.7 billion.

    The moves underscore the problems plaguing personal computers and devices, HP's core business, and a decade-long search for direction by the original Silicon Valley garage startup, whose "HP Way" was once a model for businesses.

    The iconic company associated with the birth of Silicon Valley also plans to kill WebOS-based phones and the TouchPad tablet, which was launched in June but has failed to excite consumers.

    HP's third-largest acquisition ever and its potential departure from the PC arena sets in motion a transformation that recalls International Business Machine Corp's overhaul of the last decade.

    The barrage of news, which forced HP to announce third-quarter earnings an hour early on Thursday, masked a sharp reduction in HP's estimates for full-year revenue and earnings that sent its shares down 6.1 percent to a 52-week low. They slid another 10 percent to $26.61 in after-hours trading.

    HP Chief Executive Leo Apotheker is responding to mounting pressure to fire up growth just as global economic and tech-spending outlooks darken. Like other PC makers, it is struggling to come up with an answer to Apple Inc's iPhones and iPads, which are gobbling up PC market share.

    "HP is at a critical point in its existence and these changes are fundamental to the success we all want," Apotheker told analysts on a conference call.

    The announcement is the second this week to show how quickly technology companies are transforming as they jockey for position to cope with radical changes in consumer demand. Google Inc announced on Monday it was buying mobile handset maker Motorola Mobility for $12.5 billion, launching the Internet search and mobile software company into manufacturing for the first time.

    HP "is saying 'I want to be more like IBM.' They divested their PC business and they got more involved in software," said FBN Securities analyst Shelby Seyrafi.

    "The PC industry is a very challenged one because of the slow growth in that sector. For those companies like HP which don't have a strong tablet offering, they are victims of the encroachment of Apple's iPads and tablets on their notebook business. So they're vulnerable to losing share."

    The acquisition of cloud search-software specialist Autonomy, which analysts say may draw rival bids, marks its boldest foray into the software and technology services after Apotheker came on board with a mandate to drive innovation.

    A PC spinoff marks a historic shift for a company that Bill Hewlett and Dave Packard built into a sprawling $120 billion empire from a $538 garage operation in 1939.

    "HP is recognizing what the world has recognized, which is hardware in terms of consumers is not a huge growth business anymore," said Michael Yoshikami, chief executive of YCMNET Advisors, a minor shareholder in HP. "It's not where the money is. It's in keeping with the new CEO's perspective that they want to be more in services and more business oriented."

    LEO MAKES BOLD MOVE

    Speculation has swirled for months that HP was no longer keen on keeping a PC business struggling with low growth and single-digit margins.

    Sources told Reuters in June that private equity firms from Blackstone Group and Kohlberg Kravis Roberts to TPG Capital would like HP to break up and sell them some of its units, arguing that the world's No. 1 PC maker and tech powerhouse is stretched too thin.

    Spinning off the PC division, run by personal systems group chief Todd Bradley, would mark one of the biggest makeovers for the company since 1999, when it spun off its measurement and components businesses to form Agilent Technologies.

    The moves would turn a company that in some ways tried to mimic Apple into a devout follower of IBM, dropping a tablet with innovative software, checking out of the PC business and embracing the software and services Big Blue today embraces.

    HP has twisted and turned before, including controversial former CEO Carly Fiorina's acquisition of PC maker Compaq in 2001, which a spinoff would undo.

    "If HP spins off their PC business ..., maybe they will call it Compaq?" Dell Inc CEO tweeted after the news emerged.

    Some alternatives HP is exploring include hiving off its PC business into a separate company through a spin-off or other transaction that would likely be tax-free to U.S. shareholders. HP expects the process to be completed within 12-18 months.

    Apotheker, however, made it clear that its printing unit -- also the target of spinoff speculation -- was very strategic to the company.

    Apotheker, a former chief of European software giant SAP AG, had been expected to drive an expansion of the company's relatively small but very profitable software division -- including through major acquisitions.

    Cambridge, England-based Autonomy counts Procter & Gamble Co among a long list of major corporate customers that use its software to search and organize unstructured data like emails. It said the offer values its fully diluted share capital at as much as 7.09 billion pounds ($11.7 billion), were a clutch of convertible bonds to be exercised. Under the agreement, Barclays Capital will provide debt financing to help bankroll HP's acquisition.

    The British firm's CFO, Sushovan Hussain, is on a visit to California, a source told Reuters.

    "HP would be buying this as part of a refocus of the business on software," said Tim Daniels, technology, media and telecoms strategist at Olivetree Securities. "Clients now don't have a problem accumulating data, the problem is the structuring of it. Eighty percent of the data on the Web now is unstructured: video, pictures, emails, etc."

    KILLING THE TOUCHPAD?

    HP's Personal Systems Group also includes smartphones, tablets and the WebOS operating system, pulling in about $41 billion in revenue but only about 13 percent of profit.

    HP's decision to discontinue the TouchPad -- which hit the store shelves in July with much costly fanfare -- follows poor demand. It was discounted by $100 a month after it was launched in a market dominated by the iPad. WebOS came with the $1.2 billion acquisition of Palm last year.

    "There were also a lot of missteps, such as launching it a month before it was ready and pricing it the same as the iPad 2," said Current Analysis' Avi Greengart. "It was a great operating system. Everybody was pulling for it but a lot of people weren't buying it."

    Going forward, HP expects further pressure on its revenue and cut its full-year forecast for the third straight quarter.

    HP now expects full-year revenue of $127.2 billion to $127.6 billion, down from a previous estimate of $129 billion to $130 billion. It also cut its earnings per share estimate to a range of $3.59 to $3.70, down from its previous estimate of at least $4.27 per share.

    Barclays Capital and Perella Weinberg are advising HP, while Qatalyst Partners, Goldman Sachs, Citigroup, Merrill Lynch, UBS and JPMorgan Chase are advising Autonomy.

    HP also named John Visentin as executive vice president of its services group. Ann Livermore, former HP Enterprise unit chief who was managing the services unit on an interim basis, will move over to the company's board.

    (Additional reporting by Megan Davies and Sinead Carew in New York, Bill Rigby in Seattle, Alexei Oreskovic in San Francisco, Victoria Rowley, Georgina Prodhan and Paul Sandle in London; Writing by Edwin Chan; Editing by Richard Chang and Carol Bishopric)

    Wednesday, August 17, 2011

    Reuter site - Bharti group firm launches $220 tablet computer in India

    This article was sent to you from bombastic4000@yahoo.com, who uses Reuters Mobile Site to get news and information on the go. To access Reuters on your mobile phone, go to:
    http://mobile.reuters.com/article/technologyNews/idUSTRE77G2S720110817

    Bharti group firm launches $220 tablet computer in India

    Wed, Aug 17 09:17 AM EDT

    NEW DELHI (Reuters) - Beetel Teletech, part of India's Bharti Enterprises that controls top mobile carrier Bharti Airtel <BRTI.NS>, launched a tablet computer priced at 9,999 rupees ($220) on Wednesday.

    The 7-inch tablet, branded Beetel Magiq, runs on Google's <GOOG.O> Android operating system and supports both 3G and Wi-Fi networks, Beetel said in a statement.

    Beetel is one of the largest makers of fixed-line phones in India. A company spokesman said China's Huawei <HWT.UL> was their manufacturing partner for the tablet.

    India is the world's second-biggest and the fastest-growing market for mobile phones, although computer penetration is still low.

    Apple Inc <AAPL.O> began iPad sales in India in January this year, while Samsung Electronics <005930.KS> launched its Galaxy Tab in India in November last year.

    Bharti Airtel's closest rival, Reliance Communications <RLCM.NS> this month launched a tablet computer priced at 12,999 rupees.

    (Reporting by Devidutta Tripathy; Editing by Aradhana Aravindan)

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