Channel Marker

August 20, 2007  7:24 AM

Channel news: VMWare buys IPS host; Dell adjusted accounts to meet financial goals

Brein Matturro Profile: Brein Matturro

VMware acquires HIPS provider Determina VMware, the leader in virtualization software, has acquired Determina, a provider of host IPS technology. []

Dell founder in spotlight after accounting audit Dell’s disclosure that executives routinely adjusted accounts to meet financial goals raises questions about the role of founder Michael Dell. [eWEEK]

IBM bases new Lotus Notes, Domino 8 on Eclipse IBM rolls outs Lotus Notes and Domino 8 as an open standards-based alternative to Microsoft Share point and Office. [eWEEK]

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August 17, 2007  7:10 AM

Channel news: TJX fined for breach; data leak kills VAR; Pfizer breached

Brein Matturro Profile: Brein Matturro

TJX takes $118m hit over massive security breach $2.60 each for exposed credit card. [TheReg]

Data leaks kill medical IT contractor Company linked to hospital data leaks buried under fallout. [DailyTech]

Second security breach hits Pfizer Another screwup at Viagra manufacturer. [TheReg]

Virtualization events add options for Windows shops Virtualization expert John Palmieri reacts to shifting sands in the virtualization market and the benefits to Windows administrators. []

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August 16, 2007  10:45 PM

HP’s Q3 profits up

Brein Matturro Profile: Brein Matturro

Hewlett Packard Corp. has delivered another strong quarterly earnings performance with revenues growing at its best rate since the year 2000, Mark Hurd, HP’s CEO said during the company’s Q3 conference call.

During the third quarter, which is typically a slow quarter for the company, HP’s revenues grew 16% to $25.4 billion from $21.9 billion a year earlier.   In the year’s first nine months, revenue was up $8.9 billion to $76 billion and the company anticipates full year revenue of roughly $103 billion, representing more than $11 billion of new revenue this year.   

With regard to the company’s business units, HP’s personal systems group (PSG) which includes PCs, rose 29% to $8.9 billion. Notebook revenue grew 54%, desktop revenue grew 12% and workstations were up 30%.  PSG’s operating profit rose 89% to $519 million, or 5.8% compared to 4.0% a year earlier.

Results for HP’s imaging and printing business segment also increased with revenues up 8% to $6.8 billion. The unit’s operating profit was up 11% to $981 million, and operating margin improved to 14.5% from 14.2% a year ago. HP’s printer unit shipment grew 10% with over 13 million printer hardware units shipped in the third quarter.

In the enterprise storage and servers segment revenue grew 10% to $4.5 billion. Operating profit rose 57% to $464 million and profit margins improved to 10.2 % from 7.2% a year earlier.  Industry standard server revenue grew 16% and server blades grew 81% compared to the same quarter last year. 

In software HP’s revenue grew 74% compared to the same quarter last year to $554 million.

While Hurd said the company has a strong lineup of products and services and is competing in markets where there is growth, he also said there is substantial room for improvement.

“By the time you get to 2009 the IT market that HP competes for is greater than $1.1 trillion.  Today, as big as we are, we actually don’t compete for all of that market.  We still are under distributed and so we need more work with our partners.  We have about 140,000 partners in the world and we have a sales force that compliments and supports it.  We’ve got a lot more market to [go] after,” Hurd said. 

August 16, 2007  7:24 AM

“Bloated, business-reject” Vista will surpass XP, but not any time soon

badarrow Barbara Darrow Profile: badarrow

Gartner: Vista will surpass XP, but not any time soon

Windows Vista will overtake Windows XP sales, but not for a couple of years, according to recent Gartner estimates.

Gartner predicts Vista sales will surpass declining XP sales sometime in the middle of 2009.
Their projections show worldwide sales for Vista that year will be around 596 million units vs. 516 million for XP. In 2008, Vista is expected to hit the 324 million mark vs. close to 660 million for XP. (Vista became widely available early this year.)

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August 16, 2007  7:14 AM

Channel news: Citrix buys VMWare rival; Novell “won’t sue over Unix;” Office 2007 SP1 ships

Brein Matturro Profile: Brein Matturro

Citrix buying VMWare rival for $500M Citrix Systems Inc. is buying 3-year-old startup XenSource Inc. for $500 million, marking the second big deal this week to highlight the bustling market for software that makes computers run more efficiently. [AP]

Novell: We have no plans to sue anyone over UNIX In the wake of last week’s ruling that Novell, and not SCO, controls the copyrights covering UNIX, Novell is reassuring Unix users that it has no plans to follow in SCO’s footsteps by pursuing any copyright claims.

The first Office 2007 Service Pack 1 beta is out On August 15, Microsoft released to a select set of testers a first beta drop of Service Pack (SP) 1 for Office 2007. What’s in it? When’s the final release due? Microsoft won’t say. [All About Microsoft]

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August 15, 2007  6:31 PM

Citrix swallows XenSource

Brein Matturro Profile: Brein Matturro

Citrix Systems, Inc. today announced that it will acquire XenSource, Inc., for $500 million – a move that will catapult the company into the server and desktop virtualization market.

The Fort Lauderdale, Fla., company said the purchase will be a combination of cash and stock, which includes the assumption of $107 million in unvested stock options. The deal should be finalized in the fourth quarter of 2007.

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August 15, 2007  11:09 AM

Avnet launches program to boost partner capabilities

Brein Matturro Profile: Brein Matturro

Avnet Technology Solutions, has announced a new program designed to encourage its existing partners to serve small and mid-sized businesses, and to partner with each other to expand the range of services each can offer.

Under the program — called OneTech Connect — Avnet will manage and enforce the rules of engagement and supply technical support.

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August 15, 2007  6:54 AM

Channel news: MSFT fixes Win/IE, Excel flaws; Oracle 11g for Linux, not Win

Brein Matturro Profile: Brein Matturro

Latest Microsoft flaws affect Windows, IE, Excel Microsoft released nine security updates Tuesday — six of them critical — for flaws in Internet Explorer, Excel and other programs within the Windows OS. []

Oracle 11g ships first on Linux, not Microsoft Windows Stagnant Unix growth and increased customer demand for SQL Server may signal an Oracle-driven surge of Linux deployments and migrations later this year. []

Citrix to reveal XenSource buy tomorrow Gets hypervised. [TheReg]

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August 14, 2007  1:17 PM

VAR eye view: Mail migrations overstated

badarrow Barbara Darrow Profile: badarrow

When Microsoft made the second beta of Exchange Server 2007 SP1 available to testers on Monday, it used the occasion to once again tout mass migrations of IBM/Lotus Notes customers into the Microsoft Exchange and/or SharePoint camp.

This time it claimed that more than three million customers in “over 1000” companies have switched to the Exchange Server /Sharepoint Server dynamic duo from Notes in the past year.

IBM and Microsoft have made a parlor game of such claims and counterclaims for the past decade. You know it’s Lotusphere time when Microsoft announce X-million Notes users have switched. IBM/Lotus typically returns fire.

But many e-mail-savvy VARs say these mass migrations are simply not in evidence in the real world.

“The Lotus situation is very stable really and despite what everyone is saying, customers are not flocking off of Notes. Lotus Notes and Domino are very capable, mature products,” says Ron Herardian, chief systems architect for Global System Services, a Mountain View, Calif.- solution provider who works in both camps.

In fact, if people were to count Web mail seats hosted by ISPs, the market share picture would be very different from what either IBM or Microsoft is saying, Herardian maintains.

“A little known fact is that Sun has more messaging seats than Lotus and Microsoft combined if you count Web mail seats,” Herardian noted. Sun Microsystems had its own mail server product and then bought Netscape Communications technology later on. Its mail is typically hosted by ISPs and telecoms.

As for GSS’ business, mail customers are in three camps…Lotus, Microsoft and Sun, he noted.

Many solution providers now say the Lotus-Microsoft numbers are moot from another perspective: They say those customers who are weighing a mail move are just as likely to consider less-pricey Web-2.0 like or other hosted mail solutions as the more expensive Microsoft and IBM options. Most typically don’t know or care what the underlying technology is.

Still, many e-mail VARs expect dueling press releases about stolen customers to keep flowing out of Cambridge and Redmond for some time.

Barbara Darrow, a Boston-area journalist, can be reached at

August 14, 2007  9:30 AM

Novell enters endpoint security market

Bcournoyer Brendan Cournoyer Profile: Bcournoyer

There’s a new player in the endpoint security market.

Networking giant Novell has acquired Senforce Technologies and plans to integrate the Draper, Utah-based vendor’s products into an endpoint security suite. The move should help Novell go up against security vendors like Symantec and McAfee, as well as its traditional competitors in the networking market. It will also give value-added resellers (VARs) and systems integrators (SIs) a new option to help protect their customers against malware and data leaks.

Our colleagues over at have the full story on Novell’s acquisition of Senforce. Meanwhile, here at, you can learn how to sell endpoint security and find out more about the data leak prevention market.

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