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Outsourcery sold after Dragon runs out of puff

Something positive was salvaged from the crash at cloud biz Outsourcery - 100 employees have transferred with the business in a pre-pack sale to new owners GCI Network Solutions. The loss-making company ran into cash flow shortages on multiple occasions, most recently in April when principal secured lender Vodafone stepped in …
Paul Kunert, 17 Jun 2016
Chinese Fen Shui good luck coins

Chinese numerologists are betting Dell/EMC deal will make them rich

The Register can reveal that Chinese numerology is playing a part in Dell's acquisition of EMC. Deep in the SEC filings about the deal is the factoid that a parcel of 18,181,818 shares of Class C Common Stock will end up in the hands of “Venezio Investments Pte. Ltd., an affiliate of Temasek Holdings (Private) Limited.” The …
Simon Sharwood, 17 Jun 2016

Vanishing EMC golden handcuffs could cause brain drain

Stock option-incentivised EMC staff could brain drain out of the company as the Dell acquisition will cash-out their stock options, de-incentivising them. We're told by an EMC insider that: "All EMC golden handcuffs disappear at the Dell acquisition. That is, immediately prior to the acquisition, all EMC restricted stock units …
Chris Mellor, 17 Jun 2016
Pennies in a jar. Photo via Shutterstock

Stopped buying Oracle's kit? You've literally decimated its profit

Oracle is talking up soaring sales for its cloudy operations – while the IT giant's profit has taken a big hit over the past 12 months. "We dramatically overachieved again in the cloud," gushed co-CEO Safra Catz in a conference call with analysts, putting her bruised revenue and net income figures aside. "As the business grows …
Shaun Nichols, 17 Jun 2016
Little girl looks at camera with an "I told you so" attitude. Photo by Shutterstock  Release Information: Signed model release filed with Shutterstock, Inc

Outsourcery to perform ULTIMATE outsource as it enters administration

Manchester-based failing cloud biz Outsourcery is to undertake a pre-pack administration with Vodafone partner GCI Network Solutions waiting in the wings to buy the company’s assets. The move, exclusively revealed by The Register last week, was confirmed by AIM-listed Outsourcery to the London Stock Exchange this morning. “ …
Paul Kunert, 15 Jun 2016
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Symantec swoops on Blue Coat in $4.65bn deal

Blue Coat has scrapped its IPO plans in favour of a $4.65bn takeover by IT security rival Symantec. Greg Clark, Blue Coat CEO, will take the helm at Symantec, so resolving the question of succession of Mike Brown, who announced his resignation as CEO in April. On a pro-forma basis, the combined company would have $4.4bn in …
Drew Cullen, 13 Jun 2016
Michael Dell, photo: Dell

Dell slips into a slimmer red dress after sales diet

Dell had an unremarkable Q1 of fiscal 2017, with its parent Denali Holding Inc today reporting revenues down 2 per cent year on the year to $12.5bn, but greatly reduced operating losses, trimmed 52 per cent from $335m to $161m. The company burned through $63m in cash in the three months ended April 29 but this pointed to " …
Drew Cullen, 10 Jun 2016

Google snubs 'dark money' questions at AGM. Shareholder power? Yeah, right

Alphabet shareholders demanding greater shareholder scrutiny and more transparency over its lobbying network were snubbed by Google executives at its AGM yesterday. To drive the point home, Google amended its incorporation documents so that Alphabet, its sole owner, doesn’t need to convene a vote of Alphabet shareholders for …
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Pulsant swallows Onyx – just like we told you they would

Bit barn and cloud services seller Pulsant has confirmed this morning it has devoured fellow data centre services business Onyx. Financial terms were not disclosed but when The Channel exclusively revealed the agreement some weeks ago, our sources told us £65m had changed hands. The buy gives Pulsant an expanded base with …
Paul Kunert, 9 Jun 2016

Speaking in Tech: Hold up. Mark Zuckerberg has a PINTEREST account?

Podcast speaking_in_tech Greg Knieriemen podcast enterprise It's our weekly techcast, hosted by Sarah Vela, Amy Lewis and Justin Warren. This week the threesome discuss Bitmojis, AWS falling down Down Under, MPLS and more. The details… (1:00) Weather woes, Eddie Spinach, DockerCon and BrenderCon (5:35) NetApp and Dell pimpin (7 …
Team Register, 8 Jun 2016

Verizon! to! bid! $3bn! for! Yahoo!'s assets!

Verizon has submitted a second-round bid to acquire Yahoo!'s core internet business, according to reports. The Wall Street Journal reported that the telco would offer $3bn in Yahoo!'s second bidding round, which closed earlier this morning. It is unlikely to be the final round of bidding, with Jerry and David's Guide to the …

Microsoft's biggest UK reseller flashes fuller figures for '15

Microsoft licensing mountain Trustmarque won’t have done its chances of snaring a new private equity backer any harm by pushing out a decent set of trading figures for calendar year 2015. The York-based reseller, which merged with sister biz TES at the start of last year, reported turnover of £191.9m, up eight per cent on a …
Paul Kunert, 6 Jun 2016
European Union Flag

Brexit: UK gov would probably lay out tax plans in post-'leave' vote emergency budget

The UK government would be likely to have an "emergency" budget shortly after next month's EU referendum if there is a "leave" vote. It would use that budget to give clarity on its priorities for changes to the tax regime. Its proposed changes to the corporate tax regime would be influenced by the eventual trading relationship …
OUT-LAW.COM, 6 Jun 2016
Huawei HQ

Fact: Huawei now outspends Apple on R&D

Two years ago, Huawei was to premium smartphones what Datsun was to family cars in the late 1970s. Cheap and cheerful, and sometimes not all that cheerful. The idea (promoted here) that Huawei would be able to challenge Apple and Samsung was considered ridiculous. “Samsung should be very concerned at what Huawei might be …

Sources! say! Twitter's! after! you! Yahoo!

Twitter is reported to be the latest suitor eyeing up Yahoo! for a possible sale, according to reports. Chief exec Marissa Mayer talks about a possible merger of the companies, sources told the New York Post. Mayer is in line for a $55m payout following the web company's sale. Net earnings for Yahoo's first quarter in 2016 …
Kat Hall, 3 Jun 2016
Marc Benioff of Salesforce. Pic: Techcrunch

Salesforce slurps up Demandware for $2.8bn

Cloudy CRM biz Salesforce has slurped up e-commerce provider Demandware for $2.8bn (£1.9bn) in a bid to broaden its portfolio. Salesforce has rarely turned a profit in its last 17 years, preferring to prioritise growth - a strategy its newest acquisition will reinforce. For its full-year ending January 31, Salesforce posted $ …
Kat Hall, 1 Jun 2016
Roughly 150kg of gold

Nutanix goes cap in hand to Goldman Sachs for $75m loan

Hyper-converged startup and IPO wannabe Nutanix finds itself in hock for $75m to Goldman Sachs after it was forced to take out a loan because its fund-raising IPO was delayed. An amendment to its S1 SEC filing says that Nutanix has borrowed $75m from Goldman Sachs, its IPO advisor: “ In April 2016, we issued an aggregate …
Chris Mellor, 1 Jun 2016
Piggy bank, image via Shutterstock

Microsoft wants to fling money at startups. Don't all rush at once

Microsoft is stretching out its foot to dip a tentative toe into the waters of early stage investment, under a revamp of its Microsoft Ventures programme. Announcing the plans to plough more money into startups, Nagraj Kashyap, veep at Microsoft Ventures, said: "In Microsoft’s history of engaging with and supporting startups, …
Kat Hall, 31 May 2016
management governance3

Tech spending in Europe is slowing, a fatter Tech Data belches

Tech Data has said it is countering the slowdown in IT spending across Europe by nabbing market share from Ingram Micro rivals, though it stopped short of naming those leaky ships it is pinching business from. The IT distie titan reported group sales of $6bn, up one per cent year-on-year for Q1 ended 30 April; revenues in the …
Paul Kunert, 27 May 2016
Nimble Storage array

Flash. Arrrgh. Nimble sales down

Hybrid array and recent all-flash array supplier Nimble Storage shows the effects of its late AF-Series flash array market entry and hyper-competitive market with its first quarter-on-quarter revenue decline. Revenues of $86.4m in its first fiscal 2017 quarter were 21 per cent higher than a year ago but down 4 per cent …
Chris Mellor, 27 May 2016
Train wreck

The screeching of Violin Memory's parting strings is horrible

Another great quarter. Not. Violin Memory made a paltry $9.7m in revenue and posted a $22m loss for its first fiscal 2017 quarter. Revenues were down 20 per cent on the year-ago quarter and 11 per cent on the previous quarter, the fourth fiscal 2016 quarter, when revenues of $10.9m and losses of $25.5m were followed by lay- …
Chris Mellor, 27 May 2016

Foxconn to slurp loss-making Smart Technologies for $200m

Loss-making interactive display vendor Smart Technologies has agreed to sell up to Foxconn for $200m. Under the terms of the deal, the Chinese contract manufacturer will fork out $4.50 per Smart Tech share, equating to a 21 per cent premium on the average trading price in the last 90 days. The buy gives Smart access to a “ …
Paul Kunert, 27 May 2016

Q. What do you call a sales-growing letdown? A. Pure Storage

All-flash shipper Pure Storage delivered higher-than-expected revenue for its first fiscal 2017 quarter, but also had the first quarter-on-quarter revenue decline in its history since the IPO. Analysts thought it could have done better. Is this seasonality emerging for the first time or was there some other reason its turbo- …
Chris Mellor, 26 May 2016
Lenovo TinyOne PC and monitor

Lenovo: Markets for our products 'will remain challenging'

Mergers and acquisitions and restructuring costs led to Lenovo booking its first annual loss since 2009, but crappy demand for PCs and smartphones didn’t exactly help to wax the bottom line either. The Beijing HQ’d biz reported sales for fiscal ’16 ended 31 March of $44.9bn, down three per cent year-on-year, after ending the …
Paul Kunert, 26 May 2016
HP CEO Meg Whitman

Whitman deletes another chapter in HP history as CSC and ES borg

Hewlett Packard Enterprise CEO Meg Whitman is dismantling another legacy bequeathed to her by a predecessor as she waves goodbye to Enterprise Services. The first lady of Palo Alto has already closed the chapter opened by one-time CEO Carly Fiorina who had signed off the buy of Compaq, only for HP's PC business to be ejected …
Paul Kunert, 26 May 2016
George_Kurian

NetApp posts $8m loss as its pivot continues. Feeling comfy, George?

In its fourth fiscal 2016 quarter NetApp revenues were $1.38bn instead of the $1.425bn predicted at the mid-point of its last forecast, and the company made an $8m loss – the second in George Kurian’s tenure as CEO. The revenues were down 10.4 per cent on a year ago and 0.4 per cent from the previous quarter. A year ago NetApp …
Chris Mellor, 26 May 2016

It's been a breach-tastic year. And Sophos sales were good, apparently

Operating losses at security software firm Sophos have grown in its first year as a listed company – despite increased sales and an encouraging outlook overall. For the year-ending 31 March 2016, Sophos recorded an operating loss of $32.7 million on revenues of $478.2m. This compares to a loss of $0.5m on revenues of $446.7m …
John Leyden, 26 May 2016
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Hungry UK services slinger swallows hosting biz for £65m – sources

UK managed services slinger Pulsant has agreed to fork out £65m for data centre and hosting biz Onyx, multiple sources close to the situation have claimed. A "for sale" sign was erected outside Onyx’s Stockton-on-Tees HQ in January and the process was managed by Deloitte, as we exclusively revealed. “The deal is done,” said …
Paul Kunert, 26 May 2016
HP's Multi Jet Fusion 3D printer

HP Inc-eption: Our new 3D printers print themselves, says CEO

Just like Leonardo DiCaprio and his photogenic pals crafted dream worlds out of dream worlds in the hit flick Inception, we're told HP Ink prints its 3D printers using its 3D printers. Take one of HP Ink's new and expensive 3D printers, and you can print out half of the components needed to build another one, CEO Dion Weisler …
Chris Williams, 26 May 2016

Lost your shirt in the MtGox Bitcoin mess? Release the Kraken!

The operators of the Kraken alt-coin exchange will distribute $91m in Bitcoins to people left out of pocket by the 2014 MtGox collapse. Kraken, appointed to oversee what remains of the MtGox estate, says it has reviewed thousands of claims by MtGox's customers, who want their BTC back. Kraken will now hand out millions of …
Shaun Nichols, 25 May 2016
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Hardware sizzles for HPE – and brings home the bacon

Software and IT services might make the world go round – at least in the heads of Wall Street moneymen – but it was hardware that once again brought home the bacon for Hewlett Packard Enterprise. For the three months ended 30 April (second quarter fiscal year 2016 – summary, tables [PDFs]), HPE's turnover edged up one per cent …
Paul Kunert, 25 May 2016
Burning money, photo via Shutterstock

Microsoft's Windows Phone folly costs it another billion dollars

The cost of Microsoft’s white elephant entry into smartphone manufacturing has gone up by another $1bn. Microsoft is restructuring its smartphone hardware business in a move that will cost 1,850 jobs and $950m. Severance pay will claim $200m of that figure, with 1,350 staff losing their jobs at Microsoft Mobile Oy in Finland …
Gavin Clarke, 25 May 2016
Man exasperated after being on hold for a long period of time. Photo by Shutterstock

Geniuses at HMRC sack too many staff! Nope, can't do it online. FAIL

HMRC was too hasty to cut staff before expected cost savings from a shift to digital materialised – something that should act as a cautionary tale for its current "digitisation" plans, the National Audit Office has warned. Between 2010/11 and 2014/15, HMRC cut staff in its personal tax department from 26,000 to 15,000. But …
Kat Hall, 25 May 2016
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'Grey tech' broker DP Data Systems has gone titsup

DP Data Systems has given up the ghost just months after committing to quit the grey market in favour of “authorised” tech. The company’s website stated, “Sorry we have now ceased trading”. Suppliers and customers were then directed to email addresses of the firm's accounts and credit control departments respectively. Back in …
Paul Kunert, 25 May 2016
Google UK office logos

French authorities raid Google's Paris HQ over tax allegations

Google's office in central Paris was raided this morning by police, directed by French financial officials, over alleged underpayment of taxes. More than 100 investigators and five magistrates were involved in the raid, which happened shortly after 5am on Tuesday morning, Reuters reported. This has been confirmed to The …
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UK distributor Steljes goes titsup

Specialist audio visual distributor Steljes Ltd has called in the administrators after liquidity dried up in what was its 29th year of commercial life. The company had “suffered from severe cash flow difficulties over the past year”, a rep at insolvency practitioner AlixPartners, which is managing the end of life process, told …
Paul Kunert, 24 May 2016
Surface Book

Booming sales of flippy detachables offers hope to glum PC market

Booming sales of computers and tablets with detachable and rotating keyboards brought some cheer to the ailing PC market in the first quarter of 2016, according to research. Sales of detachables and convertibles rose 40 per cent to 3.6 million units in the first quarter of the year, offering a boon to the shrinking computer …
Kat Hall, 24 May 2016

Cock fight? Not half. Microsoft beats down Apple in Q1

Microsoft won bragging rights over Apple in Britain’s biz slab sales stakes following the first full quarter the two rivals went head to head with their Pro devices. The iPad Pro, released in last October, sold 107,000 units in the UK in Q1 versus 275,000 Surface Pro devices, which was up on the 83,000 units Microsoft flogged …
Paul Kunert, 23 May 2016
European Union Flag

EMC, Cisco and pals nail colours to the EU Remain mast

American storage seller EMC is the latest tech tanker to tell the good burghers of Britain it wants the country to remain in the EU, and it even did so without mentioning Hitler or ISIS. Outgoing CEO Big Joe Tucci and execs at other big businesses including Cisco, Ford of Europe, Airbus, Mars, IBM UK and Microsoft UK signed a …
Paul Kunert, 20 May 2016
Swiss Cow

Networking not cutting it: Brocade needs wireless to pull revs up

Brocade reported second quarter revenue of $523m, down 4 per cent year-over-year from $547m, and a 9 per cent quarter-over-quarter decline from $574m, as general storage networking sales weakness impacted its results. Segment-wise: SAN product revenue of $297mn was down 5 per cent year-over-year Fibre Channel directors …
Chris Mellor, 20 May 2016
Piggy bank, image via Shutterstock

Salesforce claims 'record' quarter record at Oracle and SAP's expense

Salesforce has claimed its “best ever” year opening - at the expense of Oracle and SAP - while committing a growing portion of its cloud to AWS. The SaaS provider bounced back into the black for the first three months of 2016, its fiscal 2017, reporting net income of $38m. Revenue was up 26.8 per cent to $1.91bn, leaving …
Gavin Clarke, 19 May 2016

When are flat revenues not so bad? When your name is Cisco

Cisco says that it is optimistic on its financial outlook despite a "challenging environment" that saw the networking giant's quarterly revenues drop slightly. "We delivered a strong Q3, executing well despite the challenging environment," said CEO Chuck Robbins. "I'm pleased with our performance today as well as the progress …
Shaun Nichols, 18 May 2016