Computer Industry Updates: 26/06/09

TEXAS INSTRUMENTS BETS ON EMERGING BUSINESSES
S Shyamala, Chennai
Financial Chronicle

Semiconductor major Texas Instruments India (TI) is betting big on emerging business areas such as home automation, wireless technologies and domestic low-cost medical equipment manufacturing. Though the global semiconductor market is expected to shrink by about 5 percent, the Asia Pacific region including India will see a healthy growth, a company official said.

The Indian semiconductor market was worth about $2.4 billion in 2008 and it is expected to grow by at least 13 percent this year, said Srinivas Kasa, general manager, South, sales and marketing, Texas Instruments India. However, Kasa refused to reveal financial details and expectations of the company for the year in India.

Emerging growth areas including light-emitting diode (LED) lighting devices, liquid crystal display (LCD) televisions and video surveillance will help in propelling the company’s growth in the country, he added. TI markets more than 50,000 semiconductor products catering to several business verticals such as automobiles, energy, telecom, industrial applications and medicine.

“Although our research and development centre is present in India for the past 23 years, we started focusing on the region as a potential market only in the past three years. There are no local semiconductor companies catering to the needs of the market. We have a large opportunity and have accordingly expanded our sales set up to 14 tier-I and tier-II cities in India,” he added. The Asia Pacific region is the largest revenue contributor to the company because of the enormous manufacturing activities in China, Taiwan, the Philippines and India, he said. Though growth in the sales of consumer electronics and hence semiconductors may be tapered down across the world, the Asia Pacific may not be largely affected because of the local demand, Kasa added.

 

HP REJIGS MKT PLANS ALONG MICRO LINES
Writankar Mukherjee, Kolkata
The Economic Times (Bangalore edition)

Hewlett-Packard (HP), India’s largest PC vendor by market share, has decided to micro segment the Indian notebook market to roll out products suiting the specific needs of users. The company has identified segments like casual gamers, women, youth, doctors, chartered accountants and architects to be harbouring huge possibilities for customised notebooks.

This is a significant shift in HP’s go-to-market strategy because till now the company had segmented the Indian market into consumer, enterprise, SMBs, government and education.

HP TARGETS PUBLISHING, PHARMA INDUSTRY IN GUJARAT
Mumbai/Ahmedabad
Business Standard

The imaging and printing division of Hewlett-Packard India (HP) will be focusing on pharma and publishing industry in Gujarat in the near future. The company is also planning to increase its footprint in the state, which accounts for around 17 percent of HP’s business.

“We will look at bigger opportunities in markets like pharma and publishing for our digital printing business. Around 80 percent of pharma revenues comes from Gujarat. Publishing industry is also growing rapidly at 30 percent per annum.

Therefore, it is being looked from a strategic perspective as far as the digital printing business in Gujarat is concerned,” said Puneet Chadha, director - graphic solutions business, imaging and printing group, Hewlett-Packard India

The company has already strengthened its position in the digital printing space by launching its Indigo Digital Offset Press in Gujarat. For this, HP has tied up with Gandhinagar-based Printwell Offset, an end-to-end digital offset printing solutions provider.

“The Indigo Digital Offset Press will offer a range of unique offerings for home consumers as well as businesses that address the latent gaps in the conventional analogue-based printing industry,” Chadha added.

According to Chadha, typically, an Indigo Digital Offset Press installation costs around Rs 3 crore.

INTEL RIDES ON ATOM TO TARGET NET-CONNECTED DEVICES MARKET
Chennai
The Hindu Business Line

Change your profile on Facebook, watch a video clip that your daughter recommends and edit your resume; all on your mobile while retaining the experience you had doing all these on your PC. The Atom, Intel’s newest microprocessor, would help replicate the PC’s ease of use on the mobile, said Navin Shenoy, Intel’s Vice-President and General Manager, Asia-Pacific. He was addressing reporters from The Hindu Group of publications.

Shenoy said the Atom, which was launched last year, would help Intel target three new markets: the smart phone market; the consumer electronics market (such as set top boxes having the Atom processor); and the embedded systems market, which would include ATMs and digital surveillance systems.

Showcasing a couple of products under Intel’s Project Blue, Shenoy said the Atom helped address affordability issues in PCs. He said fully functional computer with the Atom chip (and with Internet access through WiMax technology) would be available as soon as WiMax networks are up in India; as also a Net-top computer that addressed the entry level market with prices in the Rs 10,000-12,000 range, without in-built Net connectivity capability.

According to him, Internet sites are typically built on the X86 architecture and the Atom, built using that architecture, helps replicate the PC experience on mobile Internet devices.

Asked if Intel has not already missed the mobile phone revolution, Shenoy said, “We came into the market five years ago but we brought nothing unique to the voice market. But now, with the Atom, we are able to uniquely address the Net-connected devices market.”

He also clarified that Intel had recently rationalised its worldwide capacity and had no plans to invest in new factories in India.

Commenting on the cyclicality of the semiconductor industry, Shenoy said, “We tend to see the downturn six months early. Likewise for the revival.”

He added that the last two to three months had been stable.

INDIA’S PC MARKET TO WITNESS FLAT GROWTH IN 2009: GARTNER SURVEY
Mumbai
The Financial Express   

Gartner’s recent survey predicts that the Indian PC market will be flat in 2009, witnessing a decline of 0.8% from 2008, which is an upward revision from its earlier projection made in February 2009 of 3.7% decline.

According to sources, India PC market shipments was flat in CY 2008 at 7.98 million units. Gartner predicts, a worldwide PC shipment is likely to reach 274 million units in 2009, a 6% decline from 2008 shipments of 292 million.

Gartner now expects the PC market to post positive growth in the fourth quarter of 2009, setting the stage for a healthy market recovery in 2010 with units forecast to grow 10.3%.

Gartner’s latest forecast is more positive than its preliminary forecast from mid-May, which anticipated a 6.6% unit decline in 2009, and considerably stronger than its last detailed forecast from March, which projected a 9.2% unit decline.

However, analysts are still wary to say that the worst is over and the market is recovering.

“PC unit growth was stronger than we expected in all markets but Eastern Europe in the first quarter of 2009. In particular, consumer shipments were much stronger than we anticipated,” said George Shiffler, research director at Gartner in a press release.

“However, professional shipments continued to struggle,” he added.

The rate of decline in PC sales globally has been slowed due to the continuing popularity of mini-notebooks, with units on target to reach 21 million this year and 30 million in 2010, said Gartner.

Mobile-PC shipments are set to reach 149 million units in 2009, a 4.1% increase from 2008, but spending on mobile PCs is expected to decline 12.8% as mobile-PC average selling prices continue to drop at an unprecedented rate, the analyst firm added.

“However, mini-notebook units posted their first quarter-over-quarter decline in the first quarter of 2009,” said Shiffler.

Gartner analysts said the impact of Windows 7’s release in October on the PC market is likely to be very modest.

“Although the buzz surrounding Windows 7 has generally been quite positive, we don’t expect the market to significantly deviate from its normal seasonal trends in reaction to its release,” said Shiffler.

INFY'S LOSS, CHIP MAKERS GAIN
C Chitti Pantulu. Bangalore
DNA (Bangalore edition)

The baton holders of the semiconductor industry have a reason to smile. After the appointment of Nandan Nilekani as the first chairman of the nascent National Unique Identification Authority of India (UID), the industry will get a fillip from smart cards.

According to industry estimates, the UID project could cost anywhere between Rs 10,000-15,000 crore over the next 4-6 years. The heart of the smart card is the embedded chip, which is supplied by a handful of companies in the country.

"The national ID card initiative and its anticipated implementation is expected to propel the market for smart cards in India," said Poornima Shenoy, president, India

Semiconductor Association (ISA). The ISA had estimated the smart card market in India to grow to $92 million by 2010. However, with the initiation of the UID project this number could catapult several fold.

The technology itself is not new. But the complexity arises with the amount of data to be written on to it, explained Ashok Chandok, senior director, global sales and marketing at NXP Semiconductors, which supplies these chips to more than 80 countries. NXP supplied the chips for an earlier pilot project for a smart card-based citizenship identity programme that was carried out in 13 districts across 9 states in 2007.

Each card could cost anywhere between Rs 20-150 each depending up on how much data and security is to be written on it, Chandok added. He explained that each card would have a micro computer built in and could hold between 32KB and 64KB data enough to save 10 fingerprints, one photograph and several more data fields.

Such cards are already being used by the Delhi Metro and the Bangalore Metropolitan

Transportation Corporation (BMTC) for fare collection, apart from a host of road transport authorities.

But given that close to a billion people will have to be covered under the UID project for which the government had allocated Rs 100 crore in the interim budget, it opens up a huge potential for smart card makers.

However, whether this will be enough incentive for semiconductor companies to set up fabs in India to manufacture a specific purpose chip is something that remains to be seen.

"But the growth of smart cards will have a direct bearing on the anticipated surge in the market for application specific standard products (ASSP), cards during the forecast period," observed ISA's Shenoy.

 

Computer Hardware Updates: 25/06/09

 

DELL INDIA TO HIRE FROM CAMPUSES
M. Somasekhar, V. Rishi Kumar, Hyderabad
The Hindu Business Line

While most global IT majors are trimming both manpower and operations in India, Dell Inc. continues to scout for fresh talent from engineering colleges.

With India operations playing a significant role in both research and global operations, Dell requires bright engineers both at the entry level and for lateral positions, said Ms Rhonda Gass, Vice-President, Information Technology, DBI (Design, Build and Integrate) at Dell Inc. Some of the staff located in the US are also being encouraged to move to Indian facilities.

The company has approached Jawaharlal Nehru Technological University, CBIT and the IIIT in Hyderabad as well as other leading colleges in the South to recruit engineers.

Researchers in India play a key role in the development and deployment of new solutions that manage globally dispersed manufacturing bases for Dell, explained Ms Gass. Dell has a manufacturing plant in Chennai. Over the last few years, teams at the Bangalore and Hyderabad centres have assumed an important role in Dell’s day-to-day operations. Some of the solutions they developed have been deployed at the Chennai and other manufacturing bases, she said.

During her brief visit to the research centres in Hyderabad and Bangalore, Ms Gass explained to Business Line how her teams dispersed across the world help in the different functions of the company, including data centres and warehouses.

“For Dell, BRIC (Brazil, Russia, China, India) countries are perceived as major markets for future growth as they are seen to be riding the next wave of opportunities. The investments we have made in India are more due to availability of talent. Also, we can be closer to customers,” she explained.

INTEL TO FOCUS ON MOBILE INTERNET DEVICES
Chennai
The Hindu

Mobile Internet devices, consumer electronics and embedded market would be three major focus areas for chip-maker Intel Corporation.

Indicating this on Wednesday, Navin Shenoy, Vice-President and General Manager, Asia Pacific, Intel Corporation, said all the three areas — worth $10 billion each — offered immense business possibilities for Intel in the coming years.

The launch of the next generation Atom family of processors, the smallest processors built with the world’s smallest transistors, would go a long way in facilitating Intel’s business exploration into these areas, he said. In this context, Shenoy said Intel signed a technology partnership agreement with Nokia.

Earlier in the day, a joint release said Intel and Nokia announced a long-term relationship to develop a new class of Intel® Architecture-based mobile computing device and chipset architectures, which would combine the performance of powerful computers with high-bandwidth mobile broadband communications and ubiquitous Internet connectivity.

“To realise this shared vision, both companies are expanding their long-standing relationship to define a new mobile platform beyond today’s smart phones, notebooks and net books, enabling the development of a variety of innovative hardware, software and mobile Internet services,” the release said. This strategic partnership would enable Intel to get into mobile market more aggressively, as the technology was advancing towards smart phones, Shenoy said. Intel, whose microprocessors were found in eight out of ten personal computers, already was working with LG Electronics on mobile devices, he said. Besides him, R. Sivakumar, Managing Director (Sales and Marketing group), Intel South Asia, and R. Ravichandran, Director (Sales), South Asia, were also present.

Keeping the PC (personal computer) platform as a base, the other markets such as mobile would evolve and this, in turn, would grow the chip market, he said.

VIRTUAL PC
The Financial Express

LG Electronics is introducing flatscreen monitors that can function as virtual computers. The new LCD monitors will incorporate NComputing’s virtualisation products that enable upto 11 people to share a single PC. NComputing technology enables a single PC or server to be virtualised so that many users can tap the unused capacity and share it as if each person had their own computer. Each person has his own keyboard, monitor, mouse, and personal files, but can share common applications and settings stored on the single PC. With the sub-$200 computing solution, LG and NComputing expect the new monitors to significantly cut ownership and maintenance costs.

 

Computer Industry News: 24/06/09

HP’S NEW NOTEBOOKS
Bangalore
Deccan Herald  The Statesman  

Hewlett-Packard (HP) India on Wednesday launched a new range of notebooks including HP pavilion dv2 series, dv3 series, dv6 series, HP mini 110 series, Compaq 610 series and the HP ProBook. The new models come with Windows Vista as operating system with LED blacklit display.

The dv series are powered by AMD processors, Compaq 610, ProBook and HP Mini are powered by Intel processors. The dv series comes in a price band of Rs 38,490 -Rs 50,990, while Mini 110, Compaq and ProBook are priced between Rs 22,990 - 40,990.

Speaking about the new product range HP Consumer Product & Marketing personal System Groups Director Rajiev Grover said, “Jobs are becoming more mobile and consumer demands are increasing, with this new range we intend to address the various needs of customers like connectivity, security.” The new light weight models will combine technology, service information, entertainment, and security. Grover also expressed confidence that the notebook market in India will witness a steady growth compare to the performance in the last quarter. HP also plans to expand the retail foot prints in 650 cities.

IT'S A BATTLE AGAINST ARM FOR THE SMARTPHONE'S SOUL
C Chitti Pantulu, Bangalore
DNA

Justin R Rattner wears four titles and leads a pack of 1,000 brainy men and women who more or less shape the future of the $40 billion Intel Corporation. But the Senior Fellow, vice-president and chief technology officer (CTO) of Intel and director of Intel Labs, wears these tags lightly. However, Intel's chief technologist is being forced to think markets and competition while pursuing research. DNA caught up with the 59-year-old on the sidelines of the Research @ Intel Day exposition in Santa Clara, California, to find out the future course of research at Intel and its latest preoccupation with software.

Excerpts:

After many years, Intel seems to have competition on the horizon as you enter the extreme mobility space. How do you see it playing out?

You know it is interesting. The architecture wars as you may call them, rack your brain. But the latest one between Intel and ARM for the soul of the smartphone is a big one. The opportunity is very big. There is speculation about our ability. We are in a steep learning curve when it comes to driving down power consumption to the levels traditionally occupied by ARM almost exclusively. It is the sub-100 milliwatt Intel processor that is required to get down to the basic phone market. Though we are vertically integrated, we are not limited in solutions to put together the silicon for it. We have got some stuff in the handhelds to be on the top.

When do you think we will see it in the market?

I think if we can overcome the manufacturing challenges, perhaps, we will see in the next couple of years. As I mentioned, we have actually organised our research around integrated platforms for small form factor devices. The 200-strong team is a crucial component in this drive. There has been collaboration, but when you put them together, you have a big team. It is critical for Intel's future and I think, we have the best talent in the world. Though we may not have traditionally been strong on packaging silicon for this, our business guys are realigning silicon r search.

Going forward, will we see Intel foraying into the device market also? Are you planning to scale up your offerings?

In the notebook space, we are at a point where we offer the complete reference design. It wouldn't surprise me if we do it on the handheld side at some point of time. The notebook line is pretty much a turnkey. Some of the service providers have shown interest in packaging 3G solutions on to netbooks and we are able to deal with that currently. In the handhelds, we will get there in good time. But when it comes to branding, it is very tough in traditional markets as the ecosystem is well established. In the 1997-98, we tried to do it in the network appliances segment and the customers gave us a tough time. It is difficult to be a supplier and a competitor at the same time. But in new areas, it may be possible.

And in those areas, it need not necessarily be just Intel Inside. It can also be Intel outside?

Sure why not. In fact, some of the things we are working on like providing advanced user interfaces are close to that. But new branding is really tough in an established market. So, we may have to find a totally new market where we don't have customers. We will come right up to the point where it is easy to take something that is basically ready to suppliers. Maybe, something like health services, where we can establish a branded product with partners.

Continuing with the question on branding, Intel is getting around to doing software for the end customer. Do you see it being branded as standalone offerings?

Intel does a lot of software, but it is lost in other peoples' products -- for instance, platform software and hardware and service solutions. But we are beginning to do some end user projects like the one by our Digital Health Group with GE Health and the Digital Home Group, which is working with Yahoo! to create a widget library to provide set top boxes with widget channels.

And there is Moblin, our operating system for netbooks. You will see a lot of graphics software later this year on it. It is less likely software will be our core business, but as you see us going further from the core, there will be more Intel software. And further away from the traditional PC, you could see an Intel logo on the software. I am referring to embedded processors, which over the next 5-7 years will be one of the bastions of computing.

Our acquisition of Wind River Systems is consistent with the demand we were seeing from these embedded applications, customers and suppliers.

What are your plans for your Bangalore centre? How do you rate it?

We have a major commitment to Bangalore. As a site, they are finally hitting the stride after a few bumps earlier.

They have done the six core Dunnington successfully and they have worked on the research for the 80 core research processors and the new silicon which looks very exciting. They are just kind of coming into their own.

HP PSG TO REJIG OFFSHORE-ONSHORE EMPLOYEE RATIO
Las Vegas
DNA

Technology major Hewlett-Packard (HP) is raising the bar for India.

The Palo Alto- headquartered firm, which offers a portfolio of professional services from design to implementation, is revisiting its offshore-onshore staff ratio. HP's move of tweaking the current mix in the Professional Services Group (PSG) will leverage India's position in the global scheme of things.

The company plans to increase its offshore headcount by at least 40% from the current 10% by 2010-end. Confirming the development, Anand Eswaran, vice-president, Global Professional Services, HP Software, said around 80% of the offshore staff will be sourced from the Bangalore office.

Keeping pace with others, HP has its head in the clouds. The global economy is not out of the woods and the company finds a bright spot in delivering software over the Internet or SaaS (software as a service).

The traction comes from the firms' tectonic shift to opt for cloud-based offerings. Presently, companies are spending less than 5% of their IT budget on SaaS. It is expected to gather steam by 2015, when companies would be spending 25-30% of their finances by subscribing to cloud-based services. The technology major employs 3,00,000 people worldwide, of which 50,000 are based out of India. However, the exact number of employees at HP Global Professional Services could not be ascertained.

 

Computer Industry News: 23/06/09

HP INTRODUCES FOUR NEW PRODUCTS FOR RAJASTHAN
Financial Chronicle

Hewlett-Packard India on Monday launched four new products in Rajasthan with focus on the business requirements of the state’s HP customers

SIMMTRONICS LAUNCHES SIMM INTEL G-41 CHIPSET MOTHERBOARDS
Financial Chronicle

Simmtronics Semiconductors, one of the largest memory module manufacturing companies in the world, has announced the launch of Intel G-41 chipset motherboards for both desktops and notebooks.

KIT: THE INDIAN MARKET FOR LAPTOPS
New Delhi
Business Standard

Laptop sales doubled in India in 2008 over the previous year.

HP has the largest market share of 21 percent in the Indian laptop market, followed by HCL and Lenovo.

Besides the corporate sector, laptops have been in demand in the education sector, with schools and colleges encouraging their day-to-day use.

Laptops sales have increased the most in the 18-36 years age group segment, which includes students and home users.

Size, weight, battery life and configuration are the most important factors consumers look at when they buy a laptop.

Laptop sales have accounted for a decline in the sales of desktop computers and are expected to take over 40 percent of the overall PC sales in India by 2010.