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Articles about Margins

Google slashes cloud storage to $0.026 per GB. Your move, Amazon

Google has dramatically lowered its cloud prices far below those of its rivals – as the search kingpin seeks to eradicate the fat profit margins of the cloud industry. The web giant announced today at its Google Cloud Platform event in San Francisco a 68 per cent price drop across the board for Google Cloud Storage – as El Reg …
Jack Clark, 25 Mar 2014

Insight warns Q1 sales and operating profits to fall

Insight Enterprises hasn't managed to dust off the economic cobwebs just yet if prelim calendar Q1 financials are anything to go by. The reselling powerhouse said today it expects revenues to decline five per cent on the same quarter a year ago to $1.2bn, and warned operating profit will drop to $17m from $25.6m - excluding …
Paul Kunert, 19 Apr 2013
closed_sign shut down under collapsed liquidation

RM begins redundancy talks with defenestrated hardware staff

Spare a thought for the poor souls at education supplier RM, which started its redundancy consultation period yesterday in the wake of the company's decision to shutter its PC production facility. RM confirmed last month that some 300 people in its Education Technology unit will be laid off as it tries to carve out a brighter …
Paul Kunert, 20 Nov 2013

Enormo-distie Avnet's profits nosedive FORTY PER CENT

Avnet chief Rick Hamada said his IT distribution giant will need to cut another $40m in costs to turn itself around - after its net income dropped nearly 42 per cent in its fiscal third quarter. Hamada said the new cost reductions should be done by the end of the next quarter, bringing its entire savings for this fiscal year to …

Crown Commercial Services turn screws on Commodity IT suppliers

Crown Commercial Services is turning the screws on suppliers operating on the Commodity IT Hardware & Software framework by cutting margins and ruling that all orders over £250k will require special approval. These new terms come into effect on 1 March and run for eight months, following CCS's decision to extend the agreement, …
Paul Kunert, 29 Jan 2014
App Store's 25 billionth download, credit Apple

Apple: Wow, thanks for the $10bn-a-year App Store. We'll be on the beach with our 30%

Apple claims its App Store racked up $10bn in sales in 2013. And in December alone, the online shop brought in $1bn in revenue and dished out three billion downloads, we're told. "We’d like to thank our customers for making 2013 the best year ever for the App Store,” Eddy Cue, Apple's senior vice-president of internet software …
Shaun Nichols, 07 Jan 2014
Job cuts jpeg

HP's hiring: UK jobs for, er, UK workers.... maybe

HP has refused to rule out making roles redundant in the UK and shifting them to parts of Europe where average salaries are lower. Cost cutting HP last week entered into consultation with the works council and yesterday engaged with union types over plans to slash 7,100 roles across the region, the last tranche of 34k job cuts …
Paul Kunert, 10 Feb 2014

Crumbs, we're going to lose that public sector bid - Jeeves, send for the lawyers

The number of complaints raised by businesses over the awarding of public sector contracts has more than doubled over the last year, according to new figures. According to data released by the Cabinet Office following a freedom of information request by Pinsent Masons, the law firm behind Out-Law.com, business complaints about …
OUT-LAW.COM, 30 Jul 2013

Surface more profitable than iPad

Microsoft's Windows RT-based Surface tablet - designed to compete with the full sized Apple iPad - has a larger profit margin than its rival, a teardown analysis has revealed. The Surface, with its minimum 32GB of Flash storage and optional Touch Cover, has a bill of materials (BoM) that totals $271. Chuck in an additional $13 …
Caleb Cox, 06 Nov 2012

Foxconn-rebrander Apple to rebrand hardware from other Taiwanese firms, too

Apple is planning to work with new manufacturers in China to beef up its supply chain and meet growing demand for the iPhone 5S. The Wall Street Journal quoted unnamed sources who claimed the Taiwanese firm Wistron will soon join Pegatron and Hon Hai as a manufacturer of the 5S. The Taipei-based smartphone and computer …
Jasper Hamill, 07 Nov 2013
The Register breaking news

Facebook reports revenues up 40% but Wall Street says 'meh'

Mark Zuckerberg must be tearing at his hoodie after Facebook's shares dipped following the release of what are, on the face of it, very respectable quarterly results for his company. Revenues for Facebook's fourth quarter of fiscal 2012 stand at $1.585bn, up 40 per cent on this time last year, with advertising up 41 per cent and …
Iain Thomson, 31 Jan 2013
Photo of billboard marketing Microsoft Surface with Windows RT

Microsoft loses grip on Christmas shoppers... despite XBox boost

Microsoft's second quarter results, posted on Thursday, reveal that the software giant struggled in the sexy world of devices during the all-important Christmas shopping period. These are the first numbers indicating how the battle between PCs and smart devices played out over the battleground for consumers' wallets that is …
Gavin Clarke, 24 Jan 2014

HANA on a minute – is that a 10PB RAM cloud server from SAP? IT IS

SAP is cutting off its legs to save its arms by rejigging its software licensing approach for the cloud. The company threw open the doors to a new online marketplace on Wednesday that lets punters to buy and consume its technology in an as-a-service format, as the world's largest maker of business software tried to goose its …
Jack Clark, 06 Mar 2014

Hello Warsaw: Greenland ice loss will be OK 'even under extreme scenarios'

The UN Climate Change Conference in Warsaw is set to wind up tomorrow, probably without establishing any real prospect of human carbon emissions being seriously reduced in the foreseeable future. Many are worried that this could mean disastrous rises in sea level this century, with associated human misery on a grand scale. In …
Lewis Page, 21 Nov 2013
TX4 Black Cab

Google patents ROBO-TAXIS to ferry punters into advertiser's shops, restaurants, etc for free

What's holding you back from online shopping? Not being to touch or test drive the thing you desire before splashing the cash? What if someone were to drive you to the store, dealership or wherever, to seal the deal for free? Great idea, huh? Well, Google just patented it. The web ad kingpin, which designs self-driving cars and …
Shaun Nichols, 28 Jan 2014

'Eventful but positive' year for RM as it quits the PC-making world

Shape-shifting education supplier RM was in philosophical mood as it exited a biz-changing fiscal '13 with profits up and revenues down, impacted by fewer – but higher margin – Building Schools for the Future contracts. Turnover in the 12 months to 30 November fell nine per cent year-on-year to £261.7m (8.4 per cent excluding …
Paul Kunert, 03 Feb 2014
BlackBerry bleeding

BlackBerry to be throttled by own supply chain

Mobile phone makers that can't sell 35 million phones every six months – three per cent of the global market – are doomed, according to Taiwanese analyst outfit Trendforce. The firm has just popped out some predictions about the mobile market, one of which suggests “obtaining upstream components and materials at good prices can …
Simon Sharwood, 14 Nov 2013
Crystal ball via http://www.manoftaste.de/

Never mind software-defined HYPE, 2014 will be the year of REALLY WEIRD storage boxen

As as we come to the end of another year, it's worth looking forward to see what – if anything – is going to change in the storage world next year, because this year has pretty much been a bust as far as innovation and radical new products are concerned. So what is going to change? I get the feeling not a huge amount will. …
StorageBod, 19 Dec 2013
channel_teaser_money_top

While rest of Britain partied, Probrand spent Olympic year recovering

2012 was a year of excitement for many in Blighty, with business getting a boost from both the Queen's Diamond Jubilee and the Olympics, but for Birmingham-based reseller Probrand it was a year of recovery. After a dramatic calendar 2011, when the firm deliberately exited low-margin high volume sales in the public sector - and …
Paul Kunert, 01 Aug 2013

Dell gambles solid server sales for NetSuite's riches

The world’s number two-server maker is gambling its core business on cloud sales and services in a deal with NetSuite. Dell has become a global reseller of the latter’s hosted enterprise resource planning (ERP) software suite and will also implement NetSuite for customers. The deal will see sales people from the recently …
Gavin Clarke, 27 Feb 2014
Intel logo

Intel's fourth quarter a bummer, as expected

Intel helps kick off the high tech earnings season by reporting its financial results for the fourth quarter and full 2012 year, and as Wall Street and Intel top brass had been anticipating, it was not a killer quarter. It was, perhaps, not as bad as many had expected given the challenges in the PC and server rackets and Intel's …
closed_sign shut down under collapsed liquidation

Resellers, distributors - your countdown to oblivion starts NOW

Whither the channel when it's all in the cloud? Whence the box-shifter when no one actually buys PCs any more? The answer is, of course, that once a particular business model has no more business then that business model ends. It is, however, possible to look at this in rather more sophisticated terms. The most obvious, since …
Tim Worstall, 17 Dec 2013

Imation posts FOURTEENTH loss-making quarter

Scalable-storage biz Imation's revenue slump continues while management continues to talk the talk about recovery, which – worryingly, for Imation – depends mainly upon storage array product developments in a brutally competitive market. The firm's revenues – and profitability – crashed as tape and optical disk media sales …
Chris Mellor, 01 Aug 2013

How Facebook flipped the data centre hardware market

The rise of Facebook helped to ruin the data centre hardware market, caused IBM to sell its x86 business to Lenovo, spurred HP to embark on an ambitious "Moonshot" server, and encouraged Dell to go private. With the recent acquisition of WhatsApp, it's also adding momentum to the drive of OTT mobile messaging, which is …
Jack Clark, 20 Feb 2014
Funnel of cash. Credit: via SXC – http://www.sxc.hu/profile/Leonardini

Shape-shifting box shifter Systemax made cash... from non-IT kit

A write-off of deferred tax assets helped to widen losses at ailing Systemax during Q4 as the tanking consumer biz in North America more than offset sales growth in the Industrial Products division. It was an eventful end to another eventful year for the shrinking reseller, with turnover in the final three months of 2013 down 7. …
Paul Kunert, 05 Mar 2014
The Register breaking news

Amazon cuts S3 storage prices AGAIN

Cloud titan Amazon Web Services has cut the cost of getting data out of its storage service, putting pressure on rivals Google and Microsoft. Request pricing for S3 GET operations across the company's nine globe-spanning data center hubs have been reduced by 60 per cent, and prices for PUT, LIST, COPY, and POST requests have …
Jack Clark, 03 Apr 2013
Diver peers through sub window. credit: Alexander Rist  http://www.sxc.hu/profile/OwnMoment

Swollen-bellied Riverbed spears trout of doubt: Opnet buyout blues over

Riverbed, the WAN optimising and cloud storage gateway biz, has announced a sparkling new Steelhead appliance and pretty shiny results as it recovers from digesting an acquisition. Which first? Let’s go for the revenues and earnings. Fourth quarter 2013 revenues were $283m – satisfying growth compared to revenues of $262m in the …
Chris Mellor, 18 Feb 2014
management strategy4

Toshiba upheaval continues as firm scraps EU country managers

Executive veep for Toshiba's European PC and TV biz Andy Bass has split after 24 years' service following another major restructure. Back in the spring of 2011, Toshiba stitched together its computing and TV businesses in a bid to make some cost savings, but the move didn't quite work out. "We lost that crispness, that focus …
Paul Kunert, 31 Jan 2014
Funnel of cash. Credit: via SXC – http://www.sxc.hu/profile/Leonardini

Intel slumps into mud despite lobbing Internet-of-Things, etc at buyers

Intel has reported modest growth in its financial results for the third quarter of 2013 over the previous three months. But measured against this time last year, the chip giant has barely grown at all. Revenues grew five per cent on the second quarter of 2013 to $13.5bn, giving it an earnings per share of 58 cents, and an …
Iain Thomson, 15 Oct 2013

Apple ups revenue estimates in wake of nine million–phone weekend

In a filing with the US Securities and Exchange Commission, Apple has announced that it now expects its revenue to come in at the high end of the range it projected when it announced its financial results for its third fiscal quarter of 2013 this July. In the filing this Monday, Apple CFO Peter Oppenheimer cited the sale of nine …
Rik Myslewski, 23 Sep 2013

Mellanox trips on faulty InfiniBand cables in Q4

InfiniBand and Ethernet switch and adapter maker Mellanox Technologies said after the market closed on Wednesday that the company was not going to make its revenue targets for the fourth quarter and full 2012 year – in part because of the jittery economy but mostly because of a bug in InfiniBand cables. In a statement, Mellanox …
Opens phones like magic

Slip your finger in this ring and unlock your backdoor, phone, etc

An NFC Ring does exactly what it says on the tin: it’s a piece of jewellery with two NFC tags embedded in it that pass information to nearby phones, tablets and other gadgets by radio. Given that NFC has been a bit of a flop, this may seem a little pointless. Even the technology flag-wavers have stopped claiming that “next year …
Simon Rockman, 22 Apr 2014
Santa Claus on his laptop

Nearly 1 in 5 of UK's Xmas gifts were bought online... not that it helped

A record number of Blighty's shoppers were browsing and buying online for Christmas, but their frenzied clicking wasn't enough to lift total retail sales by even a single per cent, the British Retail Consortium said. According to a BRC and KPMG survey, nearly one in five of all retail stuff bought was picked up from the comfort …
WD Purple surveillance HDD

Surveillance, that's a hot topic right now. We'll make some disk drives for that – WD, Seagate

Not so long ago, Apple went through a list of big cats to name its OS X releases and it seems that WD is doing the same with a box of crayons. So far we’ve had WD Black (flash-disk hybrid), Green (eco-friendly), Blue (desktop-friendly) and Red (NAS-friendly). The spectrum is widening though, as WD announced its Purple range of 3 …
Bob Dormon, 26 Feb 2014
Hadoop in the enterprise

US sales rebound for Teradata as customers run out of capacity

Business starting cooling off in the United States for data warehouse appliance maker Teradata in the third quarter last year, and now it is starting to pick up again as companies need to add more capacity to their systems. Teradata now thinks it can hit the low-end of its revenue guidance for all of 2013, something that was not …
Mellanox SwitchX-2 ASIC and its switches, not to scale

Mellanox pumps up channel for InfiniBand, Ethernet pushes

Switch and server adapter maker Mellanox Technologies gave Wall Street a bit of a shock with some cable issues and a big revenue shortfall in its most recent quarter and a projected one for the current quarter after one of its OEM customers bought more product in the latter part of 2012 than they could sell even into the first …
VMware logo

Gartner to VMware: Rock out with your socket out

The wizards at Gartner have penned a pre-VMworld suggestion to VMware: go back to being teenage rebels. Research veep Chris Wolf likens VMware to a band at a crossroads: does it essentially give up and resign itself to playing greatest hits tours to a dwindling base of fans, or try to once again turn the world on its head? Wolf …
Simon Sharwood, 20 Aug 2013

Lenovo haggling with IBM over price of System X... AGAIN

High-flying PC maker Lenovo has confirmed it has re-taken a seat at the negotiating table with an unnamed server vendor, widely believed to be IBM. That Big Blue is committed to offloading its System X unit - the x86 division that was the subject of sale talks with Lenovo last year - would come as no surprise to anyone involved …
Paul Kunert, 21 Jan 2014

Android mobes outsell iPhones, but Apple gets MORE PROFIT THAN ALL

Apple rakes in more profits from its iPhones than all Android phones combined, despite the fact that Android phones command an 81 per cent market share to Cupertino's 12.1 per cent. Earlier this week, IDC reported that Android was used in four out of five smartphones shipped during the third quarter of this year, with Apple, …
Rik Myslewski, 16 Nov 2013
Apple stock price

EU: Let's cost financial traders $400m a day, because EVIL BANKERS. Right?

Hurrah! The European Union has decided to save us from the perils of automatic trading! Also known as High Frequency Trading (HFT) or algo trading, this is simply the practice of writing a piece of code to do the buying and selling faster than a human being can possibly do it. We've talked about the basics of it here before at …
Tim Worstall, 23 Apr 2014
The Register breaking news

Rackable's margins still in witness protection program

Rackable's new CEO suffered through a tough first 90 days on the job, as gross margins continued to vanish. Rackable today reported second quarter revenue of $82m – a 14 per cent year-over-year rise. It also posted a $40m net loss during the period versus a $5.3m profit in the same period last year. The profit disappeared as …
Ashlee Vance, 26 Jul 2007

IBM to offload System x this week: Our sources spill the beans

Smart bets are being placed on IBM offloading its System x division this week, amid suggestions that staffers are braced for a grandiose announcement on Wednesday. Word of buy talks reached the desk of El Chan late last week and over the weekend the Wall Street Journal speculated that Big Blue execs may have re-opened talks with …
Paul Kunert, 20 Jan 2014
Hong Kong harbour daytime

Go East! Rackspace expands public cloud to Asia

Rackspace Hosting announced the launch of its first public cloud service in Asia in Hong Kong today, allowing businesses in the region to tap the firm’s Hybrid Cloud offering for a more flexible mix-and-match approach to IT infrastructure. Rackspace Hybrid Cloud gives customers the option to choose any combination of public and …
Phil Muncaster, 22 Oct 2013
grab_that_cash

Bumbling fraudsters fail to dupe 'Westcost' customers

Fraudsters masquerading as British distie giant Westcoast failed in their attempts to convince resellers to redirect their payments for products and services to a dodgy bank account, the company has confirmed. The scam was initially spotted by some of Westcoast's customers, who then contacted the distributor. The company has …
Paul Kunert, 20 May 2013
channel_teaser_exit

CEO of bloated outsourcing firm Capita quits after 26 years

Fat cat chief exec Paul Pinder is to quit after 26 years at outsourcing giant Capita to head up small, private equity-backed businesses. The man who, along with other top brass, pocketed a 20 per cent pay hike last year as IT Services staff had their wages frozen and bonuses shelved, is to be replaced by Capita deputy chief exec …
Paul Kunert, 18 Nov 2013
Red tide

Tintri: We have ZERO interest in adding compute to storage

Under new CEO Ken Klein, hybrid array startup Tintri is sticking to its virtualised server-centric networked storage knitting and embracing the cloud as a third tier cold storage vault. Currently a VMware-focused storage supplier using VMware storage abstractions, such as virtual machines (VMs) and virtual disks instead of LUNs …
Chris Mellor, 02 Apr 2014
management consumerisation

Comparex posts single-digit margin returns for fiscal '13

Slogging it out in the licensing sales game is a tough business. Scale is a requisite to compensate for thinning margins, and vendors are constantly chopping away at back-end fees. Microsoft large account reseller (LAR) Comparex typifies the challenge facing software resellers, and the net margin strain can be seen in their …
Paul Kunert, 11 Jun 2013

Intel treads water despite drowning PC biz clinging to Chipzilla's legs

Intel beat analyst expectations on sales and missed on earnings as the world's largest chip designer had trouble tacking into the winds of change that are reshaping the world's tech market. Full-year revenues in 2013 were $52.7bn, with a gross margin of 59.8 per cent, down slightly on $53.3bn and 62.1 per cent a year ago. Net …
Jack Clark, 16 Jan 2014

Keltec bemoans spending freeze as sales and profits dive

Services-based reseller Keltec has reported a double digit drop in sales and profits for 2012, amid claims from management that some of its customers remain jittery about the economic recovery and are refusing to sign off new projects. The reseller, headquartered in Bracknell, has filed full calendar year results at Companies …
Paul Kunert, 07 Jun 2013
BlackBerry bleeding

Android in FOUR out of 5 new smartphones. How d'ya like dem Apples?

The latest numbers from analyst house IDC on global smartphone sales during the third quarter of the year make good reading for Google and Microsoft – but it appears that Blackberry is dead in the water. Of the 211.6 million smartmobes sold in the quarter, Android took 81 per cent of the market, ahead of Apple at 12.1 per cent. …
Iain Thomson, 12 Nov 2013