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IBM introduced ultimate evening that it's selling the final components from its 1995 acquisition of Lotus to Indian company HCL for $1.eight billion.
IBM paid $3.5 billion for Lotus back in the day. The massive items listed here are Lotus Notes, Domino and Portal. These had been a large a part of IBM’s business company for a very long time, but remaining yr big Blue all started to draw back, selling the building half to HCL, while preserving handle of revenue and advertising.
This announcement marks the conclusion of the road for IBM involvement. With the construction of the platform out of its handle, and in want of money after spending $34 billion for purple Hat, in all probability IBM with no trouble decided it not made feel to retain any a part of this in-condominium.
As for HCL, it sees an opportunity to continue to build the Notes/Domino business, and it’s seizing it with this purchase. “The colossal-scale deployments of these products deliver us with a great possibility to attain and serve heaps of global organizations throughout a wide range of industries and markets,” C Vijayakumar, president and CEO at HCL applied sciences, observed in a statement saying the deal.
Alan Lepofsky, an analyst at Constellation research who keeps close watch on the business collaboration area, says the sale may symbolize a sparkling delivery for application that IBM hasn’t basically been paying close consideration to for a while. “HCL is much more drawn to Notes/Domino than IBM has been for a decade. they are investing closely, attempting to rejuvenate the manufacturer,” Lepofsky told TechCrunch.
whereas this application may additionally consider long within the enamel, Notes and Domino are nonetheless in use in many corners of the commercial enterprise, and here's especially true in EMEA (Europe, center East and Africa) and AP (Asia Pacific), Lepofsky mentioned.
He delivered that IBM looks to be absolutely exiting the collaboration area with this sale. “It seems that IBM is finished with collaboration, out of the game,” he stated.
This circulate makes feel for IBM, which is moving in a distinct route as it develops its cloud enterprise. The red Hat acquisition in October, in certain, indicates that the enterprise wants to embody inner most and hybrid cloud deployments, and older software like Lotus Notes and Domino don’t in fact play a role in that world.
The deal, which is subject to regulatory approval methods, is anticipated to close within the middle of next yr.
When IBM purchased Lotus for $three.5 billion in 1995, it regarded as even though the venerable computing tremendous turned into virtually to lock up the software trade and coast to unstoppable profits.
Eighteen years later, Lotus appears extra like a millstone round IBM’s neck than a flywheel giving it extra velocity.
according to a report within the Wall street Journal, in develop of IBM’s this fall income unlock today, Lotus became the weakest performer in IBM’s application portfolio, shedding 6.4 percent of its sales extent within the first nine months of 2012.
It probably accounts for roughly $1 billion in annual earnings, in line with estimates sourced by the WSJ, or one-sixth to at least one-fifth of IBM’s basic application business.
mockingly, Lotus as soon as led the style toward nowadays’s most popular business applied sciences, the collaborative utility that helps teams speak and work collectively on initiatives. probably the most success reviews of that area of interest is Yammer, which Microsoft bought remaining year for $1.2 billion. So, why is IBM sitting at the back of the pack instead of main from the front?
Lotus, which made the first blockbuster “killer app” in the 1980s (Lotus 1-2-3, a phenomenally a success spreadsheet program), went on to create Lotus Notes, a powerful groupware suite that got here out within the early Nineties before any individual had any idea what “groupware” was.
I used it radically at a few corporations I worked with. firstly, it become mysterious and robust. Like most conclusion-users of Lotus Notes, I used it essentially as an email software. It had its quirks, but it labored. however there turned into another dimension to Notes, a magnificent, programmable backend that can help you create databases and workspaces for collaborative work, contact management, tips sharing, and communication.
these days, we’d call it a collaboration tool or a company social-media device, and it would be net-based and requisites-compliant, like Yammer, Jive, and Huddle. within the absence of standards, Notes’ engineers needed to invent every thing themselves, making it a suave however proprietary solution.
however long before those web-primarily based startups came alongside, Notes was already dropping its cool. The customer utility became large and bloated. It turned into costly to enforce and elaborate to customise.
because the internet won popularity in the late Nineties, Lotus added necessities, like POP3 and IMAP email interfaces. They didn’t achieve this well with the requirements branch, besides the fact that children, using any one who had to use an online mail client with a Lotus Notes mail server absolutely insane.
The upshot is that, simply because the web grew to be known, Lotus Notes grew to be demanding and out of date.
bound, it was nevertheless potent, however unlocking the energy of Notes often required professional skills, giving upward thrust to a sector of Notes consultants. No surprise that these consultants are having a hard time getting taken critically today. The WSJ quotes a Notes advisor who complains about his reception:
“i'm going to a party, and that i presently get insulted,” says Eugen Tarnow, a director of the consultancy Avalon business methods, which sells the ageing e mail utility to organizations. “they say, ‘Lotus Notes, that’s still round?’ It’s no enjoyable.”
lamentably, IBM’s engineers realized the magnitude of requisites compliance too late and didn’t bake interoperability into Lotus Notes smartly ample or early adequate. So, as potent as Notes could be, it turned into and is sick-organized to work in these days’s API-wealthy cloud ambiance.
IBM has extra modern social-media utility, too, but handiest makes about $fifty five million per year from that segment of its company. So the challenge for IBM is to continue milking as a whole lot profits as it can from Lotus, while steadily shifting the branding and the salary to newer, sexier lines of company. One example: Renaming its annual Lotus conference, Lotusphere, as “Connect2013.” Yeah, that’ll support.
We’ll be looking at to see if the profits record sheds any further gentle on IBM’s efforts to turn Notes around. but as for me, I’m not preserving my breath.
photo credit: Andrew Mason by means of photopin cc
NEW DELHI: HCL applied sciences Ltd has clarified that its $1.8 billion acquisition to buy eight software products from international business Machines Corp. (IBM) announced closing month will have an operating margin of 30%, greater than the 19.6% profitability in the services business at India’s third-largest information know-how (IT) features company.
Noida-based HCL technologies will additionally admire amortization and depreciation costs at a hard and fast expense over time, rather than its earlier strategy of reserving such charges according to the profits it generated.
“Directionally, we consider it’s (amortization prices) still not remaining. (And) we are nonetheless working via some details. however may be like another application acquisition. Our expectation is that amortization may be round 20% of the earnings," HCL Tech chief executive officer (CEO) C. Vijayakumar mentioned in an interview on Tuesday.
An amortization of 20% of income implies that HCL Tech, which in December had outlined an annual 50% EBITDA (salary earlier than pastime, tax, depreciation and amortization) margin from the acquisition, will function its product business at a 30% operating margin. It expects to shut the acquisition through June 2019.
“It (amortization charges) is undoubtedly to be a straight-line components," spoke of Vijayakumar, who took over as CEO in October 2016. HCL Tech expects the eight application products, comparable to IBM Notes, Domino and Appscan, to support it garner $625 million in incremental income in the three hundred and sixty five days after the completion of the deal.
Vijayakumar did not share the income numbers from every of the eight items, few of which might be regarded by way of analysts as matured and legacy items not seeing plenty growth.
“(IBM) Lotus Notes has bought two components. there is Domino, which is a building platform, the adoption of which is terribly high. traditionally, IBM didn’t spend time to modernize it. within the closing three hundred and sixty five days, we now have modernized the entire Domino platform. So the adoption fee of Domino is terribly excessive. Notes adoption might also now not be very excessive and might decline. (however) the complete strategy is around Domino," spoke of Vijayakumar.
HCL Tech’s rationalization is tremendous for it assuages one of the crucial issues of the analysts who, previously, had been now not definite concerning the profitability of those products. The company’s past approach of recognizing amortization and depreciation costs in response to the profits it generated had made just a few analysts queasy.
They were sad because HCL Tech appeared to be boosting profitability within the close-term as it changed into pushing again costs to the latter a part of the lifetime of the contract.
youngsters, there are two unanswered questions concerning its purchase of software items from IBM, in the single-greatest acquisition by means of an Indian IT firm.
First, there's a mismatch in earnings, as HCL Tech expects to get $650 million from the items, whereas IBM ultimate week informed analysts that the items generated $1.3 billion in profits in 2018.
On Tuesday in a put up-income call with analysts, HCL Tech selected now not to comment when Ankur Rudra, an analyst at brokerage CLSA, asked the management concerning the intent at the back of the change in profits numbers.
Analysts additionally watch for some readability from the company on the tenure of amortization and even if there should be any change in profitability after the business changed the way it recognizes amortization expenses. nevertheless, a couple of analysts agree with that it is just too early to conclude on HCL Tech’s approach of scaling up business from its application business, which accounted for eleven.9%, or $263 million, of the company’s $2.2 billion in income in the third quarter.
“mainly, what concerns most is how the business executes and scales up company from items it has purchased. formerly, HCL (Tech) has a fine song-record and so it is just fair to look forward to some time (to discover) how the enterprise fares in the coming months," stated an analyst at a overseas brokerage, requesting anonymity.
Lokesh Yadav contributed to this story.
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IBM announced that after two years in development and testing by more than 25,000 businesses around the world, Lotus Notes 8 and Lotus Domino 8 will be generally available today, Friday, August 17. IBM Lotus Notes 8 and IBM Lotus Domino 8 represents the industry's first enterprise collaboration solution largely designed with input from its customers.
Research and insight gained from IBM R&D Laboratories and businesses worldwide indicate overall collaboration has superceded email as the key characteristic of their desktop experience. Consequently, Lotus Notes 8 is designed to transform the inbox into an integrated workspace that brings together email, calendar, instant messaging, office productivity tools and custom applications.
More than 93 percent of Lotus Notes customers are using the most recent two releases, a high adoption rate. Further, annual service subscription renewal rates within Lotus Notes licenses exceed 20 percent of the industry average, indicating broad, fast adoption. "Some people have actually switched from Microsoft Outlook at home to Notes 8 since we showed them how, " said Marc Frasier, IT Mgr, Well Dynamics of New Zealand. "I'm pretty confident that we'll be rolling out 8.0 pretty close to launch date."
Lotus Notes 8 is much more than email, unlike competitive offerings. Lotus Notes 8 integrates work by building in instant messaging and presence awareness, office tools to create and edit documents, presentations and spreadsheets and infusinga business' custom applications, including HelpDesk, CRM, Sales Force, Discussion Forums, Blogs and more.
"Our customers are calling Lotus Notes 8 the 'desktop of the future' because it consolidates all their collaboration tools into one screen," said Michael Rhodin, GM, IBM Lotus Software. "Collaboration is eclipsing email as the killer appwe use daily, whether your virtual desktop is on your desk, in your car, your hand, or your ear. Notes and Domino 8 is your personal portal to the Web 2.0 world."
Lotus Notes 8 organizes key applications neatly in the inbox via a newly expanded sidebar, putting the user's most valuable resources within sight after log on. "Lotus Notes & Domino 8 is a great work setup for having 'everything at your fingertips,’" said Rachael Trudgeon of the New Zealand Ministry of Health. "And the search facility is much improved and valuable."
"The best addition to Lotus Notes 8 is the RSS Reader, I can't remember what I ever did without it," said Darren Creely of Prudential UK, the UK's second biggest insurer. "We are also really excited about the improved search capabilities in Lotus Notes and Domino 8, they really help us save time and add value to our desktop."
Dale Sinstead ofPioneer Petroleums said, "Lotus Notes and Domino 8 provided our users with an attractive new interface packed with new Collaborative Communication tools, exceptional Contact Management and fresh message handling features. The new, multi-platform Notes 8 client is fast becoming a corporate workspace and breathes noticeable efficiencies into every user effort."
"We see a lot of value in the ability to build composite applications within Lotus Notes," said Robert Spaltenstein, Allianz-Suisse. "With the sidebar in Lotus Notes and Domino 8, I have one-click access to the applications and information I need to get the my work done."
Lotus Notes 8 provides instant productivity through immediate access to people, current projects or activities, and information without leaving the inbox. Time can be saved through a new search tool that lets users automatically extend searches beyond email and contacts to Web and hard drive file searches. Face can be saved through the "message recall" feature which enables users to quickly recall an email message after it has been sent by mistake, sparing a user from possible miscommunication. In addition, through the new "conversation" feature, users can view all individual messages in their inbox -- the traditional approach -- or they can now view their emails grouped together in related conversations or threads by subject. Hundreds of emails can be immediately reduced to dozens of conversations.
Building on its leadership in the business social networking, IBM is enabling Notes and Domino customers to add the Activities component of Lotus Connections directly into Notes. Licensed separately, the Activities option enables the worker to share collaborative content such as documents, email, instant messaging and other items related to a project into one logical unit. " I strongly believe Activities have the potential to revolutionize the way people organize their work and collaborate with their team," added Ingo Erdmann of the University of Paderborn. Inspired by IBM Research Labs and developed by Lotus, the Activities feature of the Lotus Notes 8 release uses Web 2.0 technologies such as Backpack, Atom, Tagging, REST, Ajax and JSON to deliver a lightweight, web-based collaboration offering.
Companies of all sizes, industries and technology lineages are embracing ND8 as the most comprehensive and versatile open collaboration platform they've used. Lotus Notes 8 includes the IBM Lotus productivity tools enabling users to create open standards-based versions of spreadsheets, word processing documents, presentations, in addition to supporting many file formats from traditional stand-alone applications. These tools are included at no additional charge with Lotus Notes & Domino 8. The productivity tools support the Open Document Format (ODF), allowing users to import and export supported file formats used by Microsoft Office and save them either in the original format or ODF. "There is a lot more to like about ND8, including integrated Sametime client with full functionality; integrated office productivity tools; and users can restore their own deleted mail," said Michael L Borror of the US Navy Federal Credit Union.
"Giving our clients more productivity tool options for their workforce gives us an edge in the consulting market. I am very excited about creating Notes applications that take advantage of the Lotus productivity tools to introduce a new level of integration unknown in the marketplace," said John Head, Framework Management with PSC Group, an IT consultant.
Another major reason why Lotus Notes customers prefer the new release over competitive offerings is its support for multiple platforms. In fact, Lotus Notes 8 and Domino 8 support a variety of platforms, including Linux and Windows for clients and Windows, Linux, Sun Solaris, AIX and IBM System i for servers. "We plan to migrate to Notes and Domino 8 on Linux in the 4th quarter of 2007 from a Windows -based hosting environment," said Patrick Darke, Director, Global IT Infrastructure of Ansell Healthcare LLC, in Bangkok. "Ansell has about 1900 users on 40 servers -- and with about 50 Domino applications in house, it is well-used for a midsize company."
Built on eclipse.org open standards, Lotus Notes 8 supports businesses' existing applications and extends their life by combining them through mashups with newer applications, resulting in composite applications that can help provide deeper insight into key business functions. For example, on a single screen, developers could link a Domino-based Sales application with a supported Human Resources system running on another platform. "Notes 8 delivers now what many consider only a future prospect: A composite application model for effective creation and use of best-of- breed software components and standard plug-ins," Professor Ludwig W. Nastansky, Chief Executive Officer, Groupware Competence Center, University of Paderborn, Germany.
Lotus Notes 8 is built on the programming model of Lotus Expeditor 6.1.1, which is based on eclipse.org open standards. Lotus Expeditor 6.1.1,enables the construction and deployment of enterprise mashups, also known as composite applications. With the inclusion of the Lotus Expeditor programming model, developers can integrate these same Composite Application capabilities into the Notes user experience. The Lotus Expeditor platform is also separatelylicenseable at additional chargefor customers who want to create their own user experience for line-of-business applications spanning PDA, Smartphone and Desktop systems that optionally connect into existing infrastructure.
Chris Conran, Director, Senior Systems Architect of Australia Bureau of Statistics stated, "As Notes 8 uses the Eclipse technology, this should allow us to develop components (or plugins) that can be deployed both internally on Notes 8 or externally on any other Eclipse platform without requiring proprietary infrastructure. We expect to use a number of open source components for functions such as data visualisation, calculations or editing."
Pricing: Lotus Notes 8 software starts at SRP of $101 per client. For a browser-based alternative, IBM Domino Web Access clients are $73 per user. IBM Lotus Domino server software starts at an SRP of $14.75 per value unit. Lotus Domino Express solutions for small and medium businesses, inclusive of client and server, start at an SRP of $99 per user.
Explore further: IBM Announces Public Beta for Lotus Notes and Domino 8
Google is said to be close to signing a deal with General Motors to provide the large automaker with Google Apps. If completed, the deal would be a huge win for Google which has been building up its enterprise offerings and market share.
No one is confirming anything on the record, but the Wall Street Journal says that Google has signed a deal to provide Google Apps to more than 100,000 employees.
The deal, however, still has to be approved, so both Google and GM are keeping quiet for the time being.
GM has been using the rather old school, but still incredibly popular with businesses, Lotus Notes, created by IBM. But the carmaker is apparently looking to update its system and has been reviewing offers from both Microsoft and Google.
GM is said to be looking for something a bit more modern, like webmail and a cloud infrastructure. And, apparently, Google has taken the lead.
Google Apps offers email, powered by the enterprise version of Gmail, but also collaboration through its Docs suite, which includes document, spreadsheet and presentation editors.
Google Apps bundles several other products and it also makes many of Google's regular products available to those with an Apps account. Very recently, the very hyped Google+ social network became available to Apps users as well.
Google Apps competes with Microsoft's traditional business software but also with its new cloud version, Office 365. However, Microsoft still dominates the space and Google Apps has a very small market share, despite several tens of millions of users.
Getting the GM contract would be a huge win for Google, not only because of the size of it, which is rather big, but because of the symbolism, people will take notice if GM chooses Google over Microsoft. They'll also notice when Google starts bragging that GM is in its portfolio.
IBM is getting serious about Java. According to analyst Christopher Carrigan of Summit Strategies, IBM is committing 1,200 developers, $100 million on Research and Development, and $200 million a year for future work to make Java its cross-platform enterprise programming language. Angus McIntyre, IBM’s Marketing Manager for Visual Age for Java, further maintains that incorporating Java across its product line is one of IBM’s three major software development priorities. With this kind of attention, Java might as well have been e-mail scripture sent by Providence to Sun’s Scott McNealy with a big cc to Lou Gerstner. So it’s fair to ask, what makes Java the new blood pumping through Big Blue? What Java products has IBM produced thus far? And what end game is IBM pursuing to captivate its customers with the promise of Java?
Java is an object-oriented, multi-threaded, interpreted programming language. Unlike compiled languages, with interpreted languages you write apps once to play on multiple platforms. With Java, you use a Java Virtual Machine (JVM) - software that interprets Java source code and executes Java applications — to translate Java to any computing environment. Java is the most portable programming language broadly deployed today.
Portability is important to IBM. It has the industry’s largest installed base of legacy systems running on a multitude of IBM platforms. Making those platforms compatible is the biggest challenge standing between IBM’s dominance of enterprise computing today and achieving preeminence in the next computing paradigm, electronic commerce. Java is the key to IBM cross-platform compatibility. But while open computing within its architecture is IBM’s near-term goal for Java, it’s long-term strategy is shifting the momentum of the enterprise platform wars from Microsoft’s Windows to IBM’s brand of Java.
To implement Java, vendors have to first license it from Sun. The licensing agreement allows them use of what’s known as 100 percent Pure Java and prevents them from proprietizing that base Java, though they’re free to optimize it for their own computing environments. Microsoft is the only vendor who’s licensed Java, but so radically optimized it for peak performance in Windows environments that it’s become essentially a proprietary Microsoft language. By characteristically appropriating and bastardizing Java for its own greater glory, Microsoft has sacrificed Java’s portability for improved Windows Java performance.
In the short term, Sun is competing with Microsoft in the court room — it’s suing Microsoft for violation of the Java licensing agreement. IBM, on the other hand, is focused on the long view. It’s leveraging its rich large-scale architecture, comprehensive server-side development expertise, and worldwide service infrastructure to surround the customer with limitless Java solution alternatives and gradual improved performance. Big Blue is betting the marketplace will trade the certainty of proprietary Java computing with Windows for the promise of open Java computing with IBM.
The Network Computing Framework — Blueprint for the Java Enterprise
To Java-enable all of its products, IBM has evolved what it calls the Network Computing Framework or NCF (see Table 1). NCF is a comprehensive software architecture that leverages cross-platform Java APIs customers use to access data on disparate IBM platforms and present it to powerful Web servers. These forward it to disparate Internet-enabled clients for use in e-com activities over the Net. The APIs let developers invest Java functionality enterprise-wide across multiple platforms by writing apps once to this processing layer instead of many times to each of the different legacy platforms.
Summit’s Carrigan in "IBM Goes on an Enterprise Offensive With Java," says NCF is unified by three layers of broad functionality — Clients, Services and Connectors — that link users, developers and businesses, and tie all three to data on diverse IBM legacy systems like AIX, MVS, AS/400, DB2 and OS/390.
There are two types of clients. Windows users can load a browser with a JVM to access client-side Java applets and JavaBean components. Others can use IBM Network Stations, lower-cost alternatives to PCS, which access host-based services via Java-enabled browsers or legacy data (on transaction processing servers like CICS) via middleware connectors.
IBM integrates Java into the infrastructure of its NCF Services, says Carrigan, by incorporating JVMs into its strategic operating systems — OS/390, OS/400, AIX and OS/2. Java is inherent in the foundation of NCF Services because Sun’s Java Development Kit (JDK) gives Java developers class libraries and tools for tuning and debugging Java apps, and JavaBeans provide the component architecture within which they can develop client-side applets and server-side servlets, as well as Internet applications. Carrigan includes Web Server, Database and Transaction as representative Services.
Carrigan says NCF Connectors are software agents that let Web server applications access enterprise data and apps on heterogeneous backends like IBM’s Encina transaction processing servers or DB2 databases as well as, say, Oracle databases, by using Sun’s Java DataBase Connector (JDBC). The Connectors give users and developers access to the Net and to enterprise backend data, apps and services. They are what most enable communication between the legacy backend, servers, clients and the Net.
JVMs and Java Compilers — Portability and Performance
Every vendor is building JVMs that optimize Java for their own platforms. IBM is no exception. It has JVMs that run on all IBM platforms, from OS/2 Warp to OS/390. Carrigan says IBM will soon introduce what it calls a Universal Virtual Machine (UVM) which will support, in addition to Java, other languages like Basic and Visual Age for SmallTalk across multiple IBM and non-IBM platforms — like AIX, Solaris and Windows NT.
Whereas the JVMs ensure portability across platforms, Anne Thomas, Senior Consultant in Distributed Computing, Patricia Seybold Group, says compilers enhance JVM performance by compiling Java down to hardware code unique to one platform. This improves performance, but undermines portability. If customers need portability, they can revert to 100 percent Pure Java and live with suboptimal performance. IBM’s McIntyre claims the IBM compiler improves Java performance tenfold.
Clients — Thin Is In
For e-com activity like purchasing or customer support, Paul Boulay, IBM’s Project Director of Marketing, Network Computer Division, says users don’t need numerous apps running on a PC — they need a few focused, high-powered applets that can interact with millions of customers seven days a week. Thin clients like network computers are ideal.
Seybold’s Thomas explains that NCS have no hard disk — users download a desktop interface with applications like a browser, calendar and word processor from the network server, which also manages the apps. When you exit the desktop, your work and apps are stored on the server, so you can re-access your desktop from any NC. You can also develop applets to customize your interface for your e-com role and save that interface on the server, Thomas adds. So someone doing customer support will have an interface optimized for those activities and not burdened with applets for, say, inventory control.
IBM’s NCs are called Network Stations and access data on a variety of IBM and other client/server backends like UNIX and NT or via terminal emulation, IBM and other host backends like AS400 or 3270 environments. Boulay says the three models can be loaded with eSuite Workplace, a generic end user "Webtop" environment for launching productivity applets, or eSuite Dev Pack, which supplies developers with JavaBeans to develop apps like spreadsheets to enrich the Workplace Webtop. All feature browsers and JVMs. IBM and Sun are also developing a Java OS for running applets on NCs. Users load it from the network at run-time, says Thomas, and it affords better scalability than Microsoft’s NT — with a powerful server, NCS can scale into the thousands while PCs on NT top out well under 100.
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