Home » Cloud Computing strategy (Page 13)

Category Archives: Cloud Computing strategy

PCs and cloud clients are not parts of Hewlett-Packard’s strategy anymore

Updates: – HP Names Bill Veghte Chief Strategy Officer [Jan. 17, 2012]

In addition to his new responsibilities, Veghte will continue in his current role as executive vice president of HP Software.

As chief strategy officer, Veghte will be responsible for keeping HP on the cutting edge of innovation. He will work with HP’s senior business and technology leaders to help define the IT industry’s future and make certain HP continues to lead the way. Veghte’s new role reaffirms HP’s commitment to providing customers with the latest platforms, products and services needed for success in a rapidly changing world.

“Every 10 to 15 years, fundamental shifts occur in the IT industry that redefine how technology is delivered,” said Meg Whitman, HP president and chief executive officer. “From mainframes to client/server to the internet, companies that identified the opportunity first and developed the right strategy came out on top. As we move forward, HP intends to stay on top, and I believe Bill has the knowledge and vision to keep us there.”

In addition to helping drive strategy for the company as a whole, Veghte will lead HP’s cloud and webOS open source initiatives.

HP chief aims for software revenue leap: report [Reuters, Dec 1, 2011]

Hewlett-Packard wants to see a jump in revenues from its software business, the company’s chief executive told German newspaper Frankfurter Allgemeine Zeitung.

“I want to double or triple our current revenue in software from the current level of $5 billion,” Chief Executive Meg Whitman said, without giving a timeline.

Whitman, who was appointed in September to replace Leo Apotheker, said the company had not made a decision on the future of its Palm webOS mobile software platform.

“It is complicated,” she was quoted as saying when asked about the future of the unit. “We need a good decision, not a quick one.”

Last month sources told Reuters Hewlett-Packard is looking to sell Palm’s webOS mobile software platform. The deal could fetch hundreds of millions of dollars but less than the $1.2 billion that HP paid last year.

Former eBay CEO Whitman defended the $12 billion acquisition of British software firm Autonomy, which was closed in October.

The deal, which was the centerpiece of a botched strategy shift that cost ex-chief executive Apotheker his job, was “a good acquisition,” Whitman told the paper, in an interview published on Thursday.

“Autonomy has potential and we can turn it into a fast-growing unit,” she said.

HP Reports Fourth Quarter and Full Year 2011 Results [Nov 21, 2011]


Fourth fiscal quarter 2011 business group results

  • Services revenue of $9.3 billion grew 2% year over year with a 12.8% operating margin. Technology Services and Application Services revenue grew 3% and 2%, respectively, while IT Outsourcing revenue grew 1% and Business Process Outsourcing revenue declined 2%.
  • Enterprise Servers, Storage and Networking (ESSN) revenue declined 4% year over year with a 13.0% operating margin. Networking revenue was up 5%, Industry Standard Servers revenue was down 4%, Business Critical Systems revenue was down 23%, and Storage revenue was up 4%.
  • HP Software revenue grew 28% year over year with a 27.7% operating margin. HP Software revenue was driven by revenue growth in licenses and services of 33% and 36%, respectively.
  • Personal Systems Group (PSG) revenue declined 2% year over year with a 5.7% operating margin. Commercial client revenue grew 5%, and Consumer client revenue declined 9%. Total units were up 2% with 5% growth in desktop units and 1% growth in notebook units.
  • Imaging and Printing Group (IPG) revenue declined 10% year over year with a 12.8% operating margin. Commercial revenue was up 4% year over year with commercial printer hardware units up 5%. Consumer printer hardware revenue was down 8% year over year with an 8% decline in units.
  • Financial Services revenue grew 18% year over year driven by double-digit growth in both lease volume and portfolio assets. The business delivered a 10.3% operating margin.

HP Software Division (Wikipedia)
HP Appoints Bill Veghte to Lead HP Software and Solutions Business [May 5, 2010]

Veghte will lead the $3.6 billion business unit, which includes a number of industry-leading offerings:

  • IT Management: helps clients improve efficiency and optimize investments with a broad range of management software that spans technology infrastructure, services and operations;
  • Information Management: transforms information for better business insight by automating the search, management and retention of information across an enterprise;
  • Business Intelligence: helps clients gain competitive advantage and create new business opportunities with solutions that connect intelligence across an enterprise; and
  • Communications and Media: enables service providers to transform their communications service portfolios and achieve operational excellence.

Veghte joins HP from Microsoft, where he most recently served as senior vice president for the $15 billion Windows business and where he was instrumental in the delivery and launch of Windows® 7.

Autonomy Unveils Next-Generation Information Platform Built for “Human Information” Era [Nov 29, 2011]

Autonomy IDOL 10 Delivers Real-Time Contextual Understanding of Structured and Unstructured Data

 Autonomy, an HP Company, today announced a groundbreaking information platform, Autonomy IDOL 10, designed to help organizations understand and process 100 percent of enterprise information in real time.

IDOL 10 provides a single processing layer that enables organizations to extract meaning and act on all forms of information, including audio, video, social media, email and web content, as well as structured data such as customer transaction logs and machine-based sensor data.

The platform combines Autonomy’s infrastructure software for automatically processing and understanding unstructured data with the high-performance real-time analytics engine for extreme structured data from Vertica, an HP Company.
[The Vertica Analytics Platform is a data warehouse software for storing and analyzing structured data, or data that has been stored in a relational database.]

From the start of the IT industry until today, humans have had to adapt information to fit the machine, and data was organized into rows and columns, a process which relied on people understanding and manually classifying data. Computers could not understand the complexity of human interactions.

However, people do not speak in zeroes and ones, but have complex language and idioms, send photographs and videos, and communicate via social media – all of which traditional databases cannot process. The challenge for the modern enterprise is to understand and extract the value from this rich sea of Human Information, which accounts for 85 percent of all corporate data, including emails, audio, video, social networking, blogs, call-center conversations, closed circuit TV footage, and more.

Today, the combination of Vertica’s high-speed analytics platform with Autonomy’s IDOL technology marks a fundamental shift in our ability to process this volume of data. We are at an historical moment when it is the “I” in Information technology that is changing. Autonomy provides solutions that understand the full spectrum of enterprise information, both human and structured information, and recognize the relationships that exist within it.
[Autonomy’s IDOL (Intelligent Data Operating Layer) server can index unstructured data within an enterprise, providing users with a search-based interface.]

By enabling computers to understand the shades of grey in the world, rather than simply the black and white found in databases, Autonomy Information Management allows businesses to automate key processes and improve an organization’s efficiency.

For far too long, organizations have confined structured data to relational databases and unstructured data to simplistic keyword matching technologies,” said Mike Lynch, executive vice president, Information Management, HP. “IDOL 10 brings these worlds together, allowing organizations to automatically process, understand, and act on 100 percent of their data, in real-time. The results will be dramatic, as businesses can develop entirely new applications that explore the richness and color of Human Information that live in unstructured, semi-structured, and structured forms.”

Platform built for the Human Information Era – IDOL 10 features:

  • A single processing layer for forming a conceptual, contextual and real-time understanding of all forms of data, both inside and outside an enterprise.
  • A combination of Autonomy’s infrastructure software for automatically processing and understanding unstructured data with Vertica’s high-performance real-time analytics engine for extreme structured data.
  • Unique pattern-matching technologies, powered by an analytics engine based on statistical algorithms that recognize distance in ideas as well as concepts and context in real time.
  • Five new solution sets – HP Big Data Solutions, HP Social Media Solutions, HP Risk Management Solutions, HP Cloud Solutions and HP Mobility Solutions.
  • “Manage-in-place” technology, which forms an index of all forms of data, allowing information to reside in its original location. This eliminates the need for making copies of data, reducing storage hardware costs and removing the need for risky and inefficient transfers of data.
  • NoSQL interface that provides a single processing layer to perform cross-channel analytics that understands both structured and unstructured data.
  • The Vertica Analytics Platform, which includes enhanced native in-database analytics, including new capabilities for geospatial, event-series pattern matching, event-series joins, and advanced aggregate statistical and regression analytics.
  • Vertica’s real-time analytics for real-world applications delivers performance enhancements throughout the Vertica Analytics Platform in areas such as subqueries, database statistics, life cycle management, query optimization, data re-segmentation and join filtering.
  • Enhanced elasticity features that enable dynamic expansion and contraction of clusters more than 20 times faster in every deployment scenario – cloud, virtual and physical – allowing users to quickly create additional capacity as needed.

HP Information Optimization is a core component of an Instant-On Enterprise. In a world of continuous connectivity, the Instant-On Enterprise embeds technology in everything it does to serve customers, employees, partners and citizens with whatever they need, instantly.

Availability

IDOL 10 is scheduled to be available worldwide on Dec. 1, 2011.Please visit http://idol.autonomy.com/to learn more about Autonomy IDOL 10.About Autonomy

Autonomy Corporation, an HP Company, is a global leader in software that processes human information, or unstructured data, including social media, email, video, audio, text, web pages and more, enabling companies to leverage their data assets.About HP

HP creates new possibilities for technology to have a meaningful impact on people, businesses, governments and society. The world’s largest technology company, HP brings together a portfolio that spans printing, personal computing, software, services and IT infrastructure to solve customer problems. More information about HP (NYSE: HPQ) is available at http://www.hp.com/.

Michael Lynch [Nov 14, 2011]
Executive Vice President, Information Management
Founder and Chief Executive Officer, Autonomy
Hewlett-Packard Company

Michael Lynch is executive vice president of Information Management at HP and founder and chief executive officer of Autonomy, an HP subsidiary. He oversees engineering, sales and marketing associated with HP’s Information Management portfolio including Vertica and Autonomy. He is also a member of the company’s executive council.

Under Lynch, Autonomy became the pioneering leader in analyzing unstructured, or human-friendly, information from which companies can extract meaning from all data in whatever format it is in, whether email, voicemail, social media, text messages or web pages.

HP Completes Acquisition of Vertica Systems, Inc. [March 22, 2011]

The acquisition, initially announced in February, will provide customers with a powerful solution for managing big data, especially when considering the volume and types of data generated by businesses in today’s information economy. Vertica’s real-time analytics platform has the ability to concurrently load and analyze data, allowing customers to turn information into insight and a competitive advantage at the speed of business.

The close of the deal builds on HP’s strategic focus on cloud and connectivity, and will enhance the company’s capabilities for information optimization by adding sophisticated, real-time business analytics for large and complex sets of data in physical, virtual and cloud environments.

HP to Keep PC Division [HP press release, Oct 27, 2011]

Continued combination of HP and its Personal Systems Group expected to deliver greater customer and shareholder value

HP today announced that it has completed its evaluation of strategic alternatives for its Personal Systems Group (PSG) and has decided the unit will remain part of the company.“HP objectively evaluated the strategic, financial and operational impact of spinning off PSG. It’s clear after our analysis that keeping PSG within HP is right for customers and partners, right for shareholders, and right for employees,” said Meg Whitman, HP president and chief executive officer. “HP is committed to PSG, and together we are stronger.”

The strategic review involved subject matter experts from across the businesses and functions. The data-driven evaluation revealed the depth of the integration that has occurred across key operations such as supply chain, IT and procurement. It also detailed the significant extent to which PSG contributes to HP’s solutions portfolio and overall brand value. Finally, it also showed that the cost to recreate these in a standalone company outweighed any benefits of separation.

The outcome of this exercise reaffirms HP’s model and the value for its customers and shareholders. PSG is a key component of HP’s strategy to deliver higher value, lasting relationships with consumers, small- and medium-sized businesses and enterprise customers. The HP board of directors is confident that PSG can drive profitable growth as part of the larger entity and accelerate solutions from other parts of HP’s business.

PSG has a history of innovation and technological leadership as well as an established record of industry-leading profitability. It is the No. 1 manufacturer of personal computers in the world with revenues totaling $40.7 billion for fiscal year 2010.

“As part of HP, PSG will continue to give customers and partners the advantages of product innovation and global scale across the industry’s broadest portfolio of PCs, workstations and more,” said Todd Bradley, executive vice president, Personal Systems Group, HP. “We intend to make the leading PC business in the world even better.”

More information is available at www.hp.com/investor/PSG-Decision.

HPQ – Hewlett Packard Co PSG Decision – Conference Call [Oct 17, 2011]

Bill Shope – Goldman Sachs – Analyst
Okay, great.Thanks, guys. In light of this decision, can you give us an update on how you’re thinking about your tablet market strategy, both near term and longer term?

Todd Bradley – Hewlett Packard Co. – EVP, Personal Systems Group

Well Bill, this is Todd. That thinking hasn’t changed.We’re continuing to focus on a Microsoft-based– the tablet that we have and the ones that will develop on Windows 8. I think from a webOS perspective, that’s kind of the next piece of work to complete. I know Meg and I are working, Meg, the whole team of Meg, Cathie, myself, Jon Rubinstein working very, very hard and as quickly as we can to make the right decisions about that product.

Meg Whitman – Hewlett Packard Co. – President and CEO

Let me just add, I think we need to be in the tablet business, and we are certainly going to be there with Windows 8. And so we’re going to make another run at this business. And we’re going to make a decision about the long-term future of webOS within HP over the next couple of months. And as soon as we make that decision, we’ll let you know on that. Because many people have said to me, well isn’t the webOS decision just completely tied to PSG? The answer to that is actually no. webOS is, has obviously use in the PSG business, but also in other businesses that we have. So it’s actually– we have to make a more holistic decision around webOS, which coming to a town near you soon, I hope.

Kulbinder Garcha – Credit Suisse – Analyst

… My question for Todd is just on the tablet strategy, Todd, what makes you confident that having been [left] this and what led to the tablet market, and certainly by engaging with Windows now with the lead of both Apple and Android, what can make you competitive in that market quickly? Especially given you referenced kind of growth for the overall PSG business going forward, I assume tablets will be part of that at some point. …

Todd Bradley – Hewlett Packard Co. – EVP, Personal Systems Group

I’ll start with the tablets.We’re at the beginning stages of a new segment in personal computing. I hardly think a couple months into it that I would clarify us as being too late. I think the work we’re doing with Microsoft is extraordinarily compelling. And frankly, I think the work we’re doing in other categories like the Ultra-Mobile space, will be very, very competitive. It’s a competitive business. It moves very, very quickly, and one we have lots of strength it.

HP: Spinning PC Unit off Would Have Cost Billions [Oct 28, 2011]

The cost of spinning off the unit would have amounted to US$1.5 billion in one-time costs and additional payments at later dates, said Tony Prophet, senior vice president of operations at HP’s Personal Systems Group (PSG) unit, which deals in PCs, smartphones and tablets.

The company had close to 100 people — executives, customers and legal advisors — working to evaluate whether to retain or spin-off the PC division, Prophet said. Other factors in the decision to retain the unit were customers’ wishes and the component purchasing power provided by the PC unit, said Prophet.

Some HP enterprise customers previously expressed dissatisfaction with the company’s decision to sell or spin-off PSG, saying they wanted to buy products from a single entity instead of going to multiple organizations for software and hardware purchases. Analysts have said that the PC business helped HP acquire hardware at cheaper rates, and that it also provided strong distribution and logistics capabilities, which were key for the printer and enterprise hardware businesses.

A lot of due diligence went into deciding to retain the PC unit, and there’s no turning back, Prophet said.

The PSG unit was valued at around $8 billion by an analyst in August when strategic alternatives were being explored. The high price made it tough sell in a down market in which other PC makers were struggling.

Looking ahead, Prophet said HP’s future PC and tablet strategy revolves around Microsoft’s upcoming Windows 8 OS. Microsoft has not announced a release date for the OS, but a top Intel executive earlier this month said the OS would be released next year.

“Obviously the major trends and the most important transition point will be Windows,” HP’s Prophet said. “We intend and are working to be a leader with Windows 8.”

HP will release a Windows 8 tablet in the future, and also ultrabooks with the OS. Ultrabooks are being promoted by Intel as a new category of thin-and-light PCs with tablet-like features.

HP’s Whitman Says She’ll Keep Strategies Begun by Apotheker [Bloomberg, Sept 23, 2011]

Hewlett-Packard Co. Chief Executive Officer Meg Whitman plans to stick by strategies set in motion by her predecessor, Leo Apotheker, betting that investors prefer steady leadership to another unsettling change of course.

Whitman, in her first interview as Hewlett-Packard’s CEO, said the company stands by plans to acquire U.K. software marker Autonomy Corp. for $10.3 billion. The company also will continue to explore whether to sell or spin off the personal-computer division, she said. Those moves were announced on Aug. 18.

“It does not signal a change in the strategy,” Whitman said yesterday of her appointment. “We are behind the actions that were taken on Aug. 18. We are firmly committed to Autonomy.”

Whitman is hewing to those plans to avoid alienating shareholders who were fed up with the about-faces that characterized Apotheker’s reign. Still, Hewlett-Packard is overpaying for Autonomy and it shouldn’t have announced a possible PC unit sale without a concrete plan in place, said Chris Whitmore, an analyst at Deutsche Bank AG.

“We’re going to get more of the same from a Meg Whitman- led HP as we did from a Leo-led HP,” said Whitmore, who is based in San Francisco and has a “sell” rating on Hewlett- Packard. “The board isn’t going to change the strategy and is going to continue down this path, which frankly was the fear.”

Shares Fall

Hewlett-Packard’s shares fell 48 cents, or 2.1 percent, to $22.32 at 4 p.m. on the New York Stock Exchange, hitting the lowest price since May 2005. The stock had jumped 6.7 percent on Sept. 21 after Bloomberg reported that Apotheker would be ousted, evidence that shareholders were relieved to see his tenure end.

Apotheker, CEO for less than 11 months, was ousted yesterday after cutting sales forecasts three times and making strategy shifts that blindsided investors. Palo Alto, California-based Hewlett-Packard also said Chairman Ray Lane will become executive chairman.

Whitman’s challenge will be boosting revenue while assuaging the investors whose dismay fueled a 47 percent plunge in Hewlett-Packard stock under Apotheker. She said the company will decide the outcome of the PC business as soon as possible.

“We’ll make a decision as fast as we possibly can,” she said in the interview. “We understand uncertainty doesn’t help the business, doesn’t help customers, doesn’t help shareholders.”

Ill-Equipped

Her experience at consumer-oriented companies such as EBay Inc., Procter & Gamble Co. and Hasbro Inc. may leave her ill- equipped to run Hewlett-Packard’s business-computing divisions, said Shaw Wu, an analyst at Sterne, Agee & Leach Inc. in San Francisco.

“She’s going to be heavily scrutinized,” said Wu, who has a “neutral” rating on the shares. “She doesn’t have the background to turn around HP.”

An estimated 25 percent of Hewlett-Packard’s sales come from consumers, Wu said. “What about the other 75 percent?”

Whitman defended her record at the helm of EBay.

“I have run a large company — not obviously as large as HP, but I have run a very large company,” she said. “While I don’t have years of experience in an enterprise business, I bought a lot of software. I was one of the largest enterprise customers in Silicon Valley.”

Disparate Groups

“That’s like saying, ‘I’ve bought an iPhone, so I can run Apple Inc.” said Whitmore at Deutsche Bank.

Whitman will need to take Hewlett-Packard’s disparate operating groups — including data-center computing gear, technology services, printers, and software — and get them working as a team, Lane said in the interview. He also lauded Whitman’s ability to communicate company strategy.

“The market’s a little confused because we’re in so many different businesses,” he said. “This is 90 percent about leadership, communications and operating execution.”

Lane, who considered becoming the CEO himself, said Hewlett-Packard executives weren’t working well under Apotheker. To explain why the board picked an outsider, Lane said on a conference call that internal managers “were not ready” to become CEO.

Whitman, 55, is credited with helping build EBay into the world’s largest Internet auctioneer, with a market value of about $40 billion. She took the company public and built an online storefront that helped thousands of small businesses peddle their wares. Yet in her final years at EBay, she couldn’t reverse a slowdown in sales growth and overpaid for Skype Technologies SA after a bidding war with Google Inc. and Yahoo! Inc. EBay later wrote down Skype’s value.

Pressure on Apotheker

Whitman joined Hewlett-Packard’s board in January after a failed bid to become California’s governor last year. Before EBay, Whitman worked as an executive at the toy company Hasbro, the floral service FTD Inc., footwear maker Stride Rite Corp. and Walt Disney Co.

Hewlett-Packard had revenue of more than $126 billion in the past fiscal year, almost 14 times the size of EBay’s sales.

“It’s not clear to me that someone who spent 30 years in the consumer space is the right person for an enterprise technology company,” said Dana Stalder, a partner at venture- capital firm Matrix Partners in Palo Alto. Stalder worked under Whitman for seven years at EBay.

Pressure on Apotheker intensified when in August he announced the overhaul that included the Autonomy deal and possible spinoff. He also killed off the company’s WebOS tablets and smartphones, five months after vowing to put the operating system on a full range of the company’s computers.

Hewlett-Packard Forecasts

Hewlett-Packard Chief Financial Officer Cathie Lesjak, who served as interim CEO before Apotheker, said yesterday on a conference call that the company was no longer confident in its fourth-quarter sales guidance. Hewlett-Packard is sticking by its profit forecast, she said.

The company said in August that fourth-quarter revenue would be $32.1 billion to $32.5 billion, with earnings of $1.12 to $1.16 a share, excluding some costs. According to Bloomberg data, analysts are predicting sales of $32.2 billion and profit of $1.14 for the period.

The board weighed whether to oust Apotheker for six to eight weeks, Lane said in the interview.

Apotheker stands to receive cash severance of at least $7.2 million, a figure that could be higher if his annual bonus was set above the minimum $2.4 million laid out in the employment agreement. Including his $1.1 million in salary received for the first year, along with a $4 million cash signing bonus and a $4.6 million relocation payment, Apotheker will have earned about $34.7 million in cash and stock for less than a year’s work.

‘Investors Wound Up’

“Not bad for a short-term job, unless you’re a HP shareholder,” said Brian Foley, a compensation consultant in White Plains, New York. “This is yet another ex-CEO of Hewlett- Packard who does very well despite the circumstances.”

Apotheker joined Hewlett-Packard after Mark Hurd departed as CEO amid a scandal over a personal relationship with a company contractor. Hurd now is a co-president at Oracle.

A steady hand may be just what Hewlett-Packard needs, said Jayson Noland, an analyst at Robert W. Baird & Co. in San Francisco. He has a “neutral” rating on the stock.

The board is directionally behind the plan Apotheker’s put in place,” Noland said. “It’s just the execution of that plan that has investors wound up.

Ray Lane Must Go at HP [Forbes, Sept 23, 2011]

Ray Lane is making the media rounds this morning, defending his decision as the Chairman of the HP (HPQ) board for firing Leo Apotheker after 11 months and hiring Meg Whitman. He did the same last night.

He never thanked Leo. He never apologized to investors or HP employees on behalf of the board for never meeting with Leo before hiring him. He made a string of ridiculous set of statements about how this board wasn’t responsible for all the botched decisions it has made over the last decade.

Lane’s answers are maddening and meant to distract the press and investors from a simple fact: Ray Lane has utterly failed in his role as Chairman of HP and needs to leave immediately.

According to an HP director who spoke to the NY Times yesterday (anonymously — what a coward!), this board was so “tired” after the in-fighting over letting go Mark Hurd that they couldn’t find time in their busy schedule to meet Leo in person before hiring him. Then, the board kept Leo in hiding for the first 4 months of his 11 months tenure — remember that? It was because they didn’t want him to get served by Oracle in a lawsuit against SAP (SAP). Then, maybe they wait another 3 months (because you should at least give a guy a quarter to show himself after you hire him and pay his $35 million for 11 months of work). Then, you get the knives out for him.

The moment an analyst hinted at that last night, Ray Lane became defensive. He declared this board wasn’t the board involved in pre-texting and it didn’t pick Leo.

Wait. It didn’t pick Leo? Which HP board did then?

A board of directors really has two jobs: hire the CEO and fire the CEO. Who hired Leo, Ray?

HP Chairman Ray Lane: A profile in courage [Dan Lyons, Sept 22, 2011]

HP board chairman Ray Lane is lashing out at critics who are pinning the blame for HP’s mess on the board of directors, who are described in this New York Times article as the “worst board in the history of business.”

Now HP’s directors are getting heat for making the incredible blunder of hiring Leo Apotheker as CEO and firing him after 11 months.

Ray says that’s not his fault, nor is it the fault of his fellow directors. “This board did not select Leo,” he says.

Lane points out that eight of the 14 current board members, including Ray Lane himself, were not involved in selecting Apotheker.

That’s true. Several of the new board members did not choose Apotheker — Apotheker chose them.

Ray Lane fails to mention that five of the new board members were selected by Apotheker (or at least with his input): Pat Russo, Dominique Senequier, Gary Reiner, Meg Whitman and Shumeet Banerji. And several of those people had long ties to Apotheker, as Bloomberg reported at the time.

But more chilling than that is the fact that Lane and Apotheker are old friends. Lane, in fact, joined HP to serve as Apotheker’s consigliere.

Lane and Apotheker have known each other for two decades. Lane joined HP at the same time that Apotheker did, in part because he wanted to work with Apotheker, according to the Wall Street Journal.

In fact their appointments were announced in the same HP press release.

In that press release, Lane said: “I am excited to join the Board of this pioneering company, and look forward to working closely with Léo – and the rest of the Board and senior management team – as they capitalize on the changes taking place across the industry. I have known and admired Léo for almost 20 years. He is ideally suited to build on HP’s strong foundation, leverage its many assets and keep the company at the forefront of innovation.”

Soon after that, Lane spoke to the San Jose Mercury News about his “close working relationship with Apotheker, whom he has known since Lane hired Apotheker as an Oracle consultant in the 1990s.”

But how things have changed. Now that Apotheker is out, Ray Lane says he wasn’t one of the guys who hired him, so the world should stop giving him shit about it.

In fact, Ray Lane now says Leo wasn’t very well qualified at all. Speaking to Kara Swisher at AllThingsD tonight, Lane said: “Leo was very wise about figuring out what HP needed to do to add value. But he did not have more important tools we needed, including operational excellence, people skills and communications skills.”

Furthermore, Lane tells AllThingsD that he’s been talking to Meg Whitman about taking over since last February — only three months after he and Apotheker joined HP, hand in hand.

Ray Lane says he approached Whitman because “she had the kind of leadership that HP needed and was lacking under ousted CEO Leo Apotheker,” Kara Swisher reports.

So, wait. In November 2010 Ray Lane joined HP for the chance to work alongside his old friend Leo Apotheker, whom he called “ideally suited” to be CEO. But by February 2011, Ray Lane was already plotting behind his back to get rid of him.

And now Ray Lane — loyal friend, and man of integrity — is angry at critics who question the judgment of the HP board of directors and suggest these folks are perhaps not the best and brightest in the business world.

This after they’ve just hired a new CEO from among their own ranks without conducting a job search because they didn’t think it was necessary and anyway time’s a-wasting and they need to fill that CEO job right away because this is, after all, the world’s largest technology company, one that does nearly $130 billion a year in revenue, and so why not just pick a CEO from whoever’s sitting in the room with you?

Of course, according to Ray Lane, Meg Whitman is an amazing talent who is ideally suited to run HP and has all the qualifications for the job and Ray Lane just totally thinks the world of her. Today.

Two thoughts:

1. Watch your back, Meg Whitman.

2. Stay classy, Ray Lane.

End of updates

HP Reports Third Quarter 2011 Results and Initiates Company Transformation [Aug 18, 2011]

HP unveiled the details of a plan to accelerate the strategy introduced in March. The plan introduced today will:

  • Move HP into higher value, higher margin growth categories
  • Sharpen HP’s focus on its strategic priorities of cloud, solutions and software with an emphasis on enterprise, commercial and government markets
  • Increase investment in innovation to drive differentiation

As part of the transformation, HP announced that its board of directors has authorized the exploration of strategic alternatives for the company’s Personal Systems Group. HP will consider a broad range of options that may include, among others, a full or partial separation of PSG from HP through a spin-off or other transaction. (See accompanying press release.)

HP will discontinue operations for webOS devices, specifically the TouchPad and webOS phones. The devices have not met internal milestones and financial targets. HP will continue to explore options to optimize the value of webOS software going forward.

Taiwan panel makers face challenges over HP’s PC spin-off plan [Aug 22, 2011]

Hewlett-Packard’s (HP) LCD panel suppliers and contract manufacturers are bracing for changes to their partnerships with the US client in the wake of its plan to separate its PC business, according to industry sources.

The extent of changes remains uncertain at this point, but many Taiwan companies could be seriously hit if HP sells the PC business to Samsung Electronics, the sources said. Rumors have been circulated since first-quarter 2011 that HP has contacted Samsung about selling the PC business to the Korea-based firm, the sources from Taiwan’s supply chain added.

Taiwan’s Chimei Innolux (CMI) and AU Optronics (AUO), both of whom are Samsung’s major competitors in the panel market, would see unimaginable impacts on their supplies to HP, the source said, adding that panel makers in Taiwan are already facing a difficult time due to sliding sales from large-size panels amid weakened TV demand.

As for HP’s PC manufacturers, including Quanta, Foxconn Electronics (Hon Hai Precision Industry) and Inventec, their partnerships with the client could also be affected. Although HP’s orders for 2012 have already been set, changes could still be made if Samsung takes over the PC business, the sources said.

Samsung reportedly contacted Taiwan OEMs for evaluating notebook outsourcing [Aug 23, 2011]

Korea-based notebook brand vendor Samsung Electronics has reportedly contacted Taiwan-based notebook makers Quanta Computer, Compal Electronics and Pegatron Technology in August to evaluate the possibility of outsourcing notebook orders, according to sources from upstream supply chain, which added that there might be a result soon and Samsung may outsource a small volume of orders to these players.

The sources added that Samsung’s actions seem like it is already in preparation to take up Hewlett-Packard’s (HP’s) PC business.

The sources pointed out that Samsung’s notebooks are all manufactured at its plants in China, although the company had made contacted Taiwan-based notebook makers several times about outsourcing orders before, there was no result. However, Samsung, earlier this month, invited Quanta, Compal and Pegatron to its headquarters in South Korea with a rather cautious attitude, which the sources believe was an indication that Samsung might be already in preparation for expanding its business.

The sources pointed that the Taiwan’s notebook OEM industry’s production efficiency and cost control is currently unmatched worldwide; therefore, if Samsung takes over HP’s PC department, HP’s over 40 million PC shipment volume will still need to depend on Taiwan OEMs. However, related suppliers of components such as panel, memory and battery may be affected as Samsung has a rather strong vertical integration supply chain.

Within HP’s 40 million units of PC orders in 2011, Quanta will ship 20 million units with Foxconn Electronics (Hon Hai Precision Industry) to ship eight million units, Inventec, seven million units, Wistron, 3-4 million units and Compal, two million units.

The sources pointed out that if HP’s PC business is sold to other brand players, makers such as Quanta, Foxconn and Inventec are expected to see the most impact as they have higher order proportions with HP, while Wistron and Compal are expected to benefit.

Commenting on the event, Quanta pointed out that since the information is still limited, the company can only monitor the outcome carefully; however, since the new PC orders from HP for 2012 are all already set, it is unlikely to have significant changes. However, if Samsung takes down HP’s 40 million units of PC shipments and with Samsung’s own 10 million units, the company will need to ship 50-60 million units totally in one year and will definitely need to find OEM partners as Samsung itself may have difficulty to make all these orders, Quanta noted.

However, Quanta will continue to work on cloud computing and the related products in the future to increase its non-notebook business’ contribution.

Meanwhile, Inventec pointed out that HP’s announcement seems like is for testing the market’s reaction and believes that whether HP will sell the business will still depend on the market’s feedbacks. In addition, since HP is given up its PC business because of the weak profitability of consumer notebooks, Inventec, which is manufacturing mainly HP’s enterprise notebooks, expects to only see a limited impact from the event.

HP PC spin-off plan may cause fierce PC price competition in 4Q11 [Aug 23, 2011]

Hewlett-Packard’s (HP’s) plan of spin off its PC business has already caused a great impact to the PC industry and with the company reportedly already started working on plans to reduce employee numbers and tighten up resources, sources from PC players expect HP will turn aggressive clearing its inventory in the fourth quarter and create fierce price competition.

Sources from the upstream supply chain pointed out that HP stepping out of the PC market may cause significant drops in market confidence for the PC industry since the action is an indication of HP’s pessimistic attitude toward the industry’s future and the pessimistic atmosphere will only increase in the future.

The sources pointed out that HP’s price competition in the fourth quarter will be the most seriously impact toward its competitors for the short term, as for the long term, things such as which player that will take up HP’s PC business, changes in the supply chain and market ranking will all greatly affect notebook players in the future.

Acer already adopting notebook price cuts in the second quarter to clear its inventory in Europe and indirectly forcing its competitors to join the competition. If HP starts another price competition in the fourth quarter, notebook players’ product average selling price (ASP) may drop even further and relatively damage their gross margin.

HP: Down 20%; Now Officially Hated By Almost Everyone [Forbes, Aug 19, 2011]

Hewlett-Packard shares are down sharply Friday after the company’s flurry of news yesterday, which included an $11 billion deal to buy Autonomy, the decision to spin the PC business, the shut down of the WebOS hardware operations, in-line July quarter results and a dark forecast for the October quarter and beyond.

Today alone, the company has lost more than $12 billion in market value.

To say yesterday’s news has not been well received would be a substantial understatement. At least a half dozen analyst cut their ratings on the stock this morning, and few others had anything nice to say about the near-term prospects for the company.

One of the most depressing aspects of the story this morning is that the market already seems to be souring on the leadership of new CEO Leo Apotheker. The general Street view is that the company is doing too much at once here; that the Autonomy deal is ill-timed and expensive; and that the company should have taken a more decisive action on the PC unit, rather than shopping it around in a process the company expects to take a year or more. It’s also astonishing (or on second, thought, predictable) that little more than a month after launching the first WebOS tablet and the first phones following the acquisition of Palm, it has already decided to stop selling them. Imagine the dollars they could have saved had they figured out months ago what the world already knew: that their chances of denting either the tablet or smart phone market were somewhere between slim and none.

Is this Leo’s fault? Or Mark Hurd’s fault? Or Carly Fiorina’s fault? It doesn’t matter. What matter is that the once might Hewlett-Packard, the world’s largest PC company, and one of the globe’s most wide-ranging technology companies, is badly leaking, and taking on water. Let’s hope it doesn’t sink.

Update: Did The Market Get It Wrong About Hewlett-Packard? [by Todd Ganos on Forbes, Aug 20, 2011]

Hewlett-Packard has announced that it will either spin off or sell its PC and mobile computing business units. After this announcement, the market took HP’s stock price down 20 percent. My question is: did the market get it wrong about Hewlett-Packard?

IDC and other tech industry observers will note that while Apple has roughly 15 percent of market share of unit sales of personal computers, Apple has roughly 90 percent of all earnings created by sales of personal computers. Apple has purposefully avoided the low-margin commoditized segments of the personal computer market. The same can said about the mobile computing segments.

Renowned management theorist Peter Drucker said that only two things matter in a company: innovation and marketing; everything else was a (commoditized) expense. Innovation provides for differentiate products and services; marketing conveys the value of that differentiation.

Without a clear sense of product differentiation in the personal computer and mobile computing segments, products will be seen as commoditized. One should expect few profits without innovation and differentiation.

So, was HP’s decision a good one? I would say yes. Capital that is currently allocated to these low-margin segments is a waste. Redeploying such capital seems smart. Now, what about HP’s purchase of Palm. Yes, it’s wasted money. But, it’s a sunk cost. HP’s management must look forward not back. It’s about admitting that they tried something, it didn’t work, now they’re moving on. With HP selling at half of its 52-week high, it seems to be a buy.

Note: There is no exclusion now in cloud client devices becoming commodities. The latest proof of that is the Huawei’s IDEOS U8150 smartphone for US$86 in Kenya: 350,000 units sold in 8 months [Aug 17, 2011].
End of update

Now only one question remains: Why Autonomy is a smart buy for HP [Aug 18, 2011]

I’ve been fascinated by Autonomy, Britain’s largest software company, for years. Those who vaguely recall the name tend to associate it with the company’s knowledge management software of a decade ago. Or more recently, they may think of the  Aurasma iPhone application released this year, which recognizes images (such as movie posters) in the real world and swaps in videos for those images in real time.

The latter technology points to the company’s core intellectual property: so-called meaning-based recognition. Autonomy excels at enterprise search and language recognition using Bayesian techniques originally developed by the company’s eccentric yet charismatic CEO Mike Lynch. The core of Autonomy’s business is in applying meaning-based recognition to identify compliance-sensitive documents and classify them for archiving, where they can be searched using the same Bayesian methods.

A little-known fact is that the company operates one of the world’s largest public clouds, containing petabytes of its customers’ compliance-sensitive material. Earlier this year, IDC identified Autonomy as the fastest-growing search and discovery vendor — and Autonomy doubled down in the space when it announced its intent to buy Iron Mountain’s digital services business in May.

Given Autonomy’s unique intellectual property and its leadership in an area strategic to the next phase of computing, I’ve wondered for years why the company remained independent. A company that has enjoyed major success in enterprise search and compliance — and a big cloud business to boot — helps forward HP’s strategic direction, as outlined by CEO Léo Apotheker shortly after he took the reins at HP.

What maybe even more important, however, is how that technology might be leveraged by HP in enhancing the way humans interact with computers. The push on that frontier, most people would agree, has proceeded slower than anticipated; HAL 9000 still seems a long way off. To me, Autonomy’s meaning-based recognition technology has always seemed to have limitless possibility — as the whizzy Aurasma technology amply illustrates. HP is making a very smart buy.

This article, “Why Autonomy is a smart buy for HP,” originally appeared at InfoWorld.com. Read more of Eric Knorr’s
Modernizing IT blog
, and for the latest business technology news, follow InfoWorld on Twitter.

About Autonomy (at the end of press releases):

Autonomy Corporation plc (LSE: AU. or AU.L), a global leader in infrastructure software for the enterprise, spearheads the Meaning Based Computing movement. IDC recently recognized Autonomy as having the largest market share and fastest growth in the worldwide search and discovery market. Autonomy’s technology allows computers to harness the full richness of human information, forming a conceptual and contextual understanding of any piece of electronic data, including unstructured information, such as text, email, web pages, voice, or video. Autonomy’s software powers the full spectrum of mission-critical enterprise applications including pan-enterprise search, customer interaction solutions, information governance, end-to-end eDiscovery, records management, archiving, business process management, web content management, web optimization, rich media management and video and audio analysis.

Autonomy’s customer base is comprised of more than 20,000 global companies, law firms and federal agencies including: AOL, BAE Systems, BBC, Bloomberg, Boeing, Citigroup, Coca Cola, Deutsche Bank, DLA Piper, Ericsson, FedEx, Ford, GlaxoSmithKline, Lloyds Banking Group, NASA, Nestlé, the New York Stock Exchange, Reuters, Shell, Tesco, T-Mobile, the U.S. Department of Energy, the U.S. Department of Homeland Security and the U.S. Securities and Exchange Commission. More than 400 companies OEM Autonomy technology, including Symantec, Citrix, HP, Novell, Oracle, Sybase and TIBCO. The company has offices worldwide. Please visit www.autonomy.com to find out more.

More:
Autonomy Press Fact Sheet [Oct 15, 2009]
Autonomy Technology Overview [Autonomy, PDF, Sept 28, 2009]
Autonomy’s Technology — A Different Approach [Autonomy, Aug 20, 2008]

More than 80% of all data in an enterprise is unstructured information. This encompasses telephone conversations, voicemails, emails, electronic documents, paper documents, images, web pages, video and hundreds of other formats. Unfortunately, attempts to leverage this immense and strategic resource often fail because many businesses lack the requisite technology to understand and effectively utilize content that resides outside the scope of structured databases.

Similarly, unstructured processes are equally unwieldy yet comprise the bulk of business operations. Current trends anticipate the rapid proliferation of rich media, widespread adoption of VOIP, growing use of IPTV and increased scrutiny of white-collar crimes. This overwhelming growth demands an automated solution that can effectively manage an unstructured digital morass.

These concerns necessitate an information infrastructure platform that addresses all classes of information in a manner analogous to well established methods for structured databases. Akin to the Relational Database Management System (RDBMS) that revolutionized the computing industry in the 1960s, this innovative platform enabled computers to process not only structured data, but also vast amounts of semi-structured and unstructured information using a global relational index.

Autonomy’s ability to process all forms of digital information on a single platform offers a unique solution to a growing number of applications and devices that are increasingly dependent on utilizing unstructured information. Autonomy employs a unique combination of technologies to enable computers to form a contextual understanding of all digital content, as well as understand people’s interaction with the data. Autonomy’s technology eliminates the traditionally manual and costly operation of processing and analyzing information by performing these functions automatically and in real-time. This represents substantial savings for every type of organization and industry and is driving the accelerated adoption of Autonomy’s technology across a diverse range of vertical markets.

Investors — An Introduction to Autonomy [Jan 29, 2010]

Summary

  • Previously computers could only process information if it was organised in rows and columns, or “structured”
  • The amount of unstructured information such as email, instant messaging and video is growing exponentially so that it now exceeds structured data 4:1
  • This is the biggest change in the IT industry to date because it is the first major change to the information rather than the technology
  • Autonomy’s technology understands the meaning of all unstructured information and automates tasks that could only be done manually before
  • Over 20,000 global companies rely on Autonomy’s technology today
  • A pure software business model has allowed us to achieve a 5 year EPS CAGR of 73%

Autonomy’s Products

In Autonomy’s fifteen year history our fundamental aim has not changed: computers should map to our human world and solve our problems, rather than the other way around. Autonomy has developed a fundamental piece of technology that allows computers to understand the meaning of unstructured information and process it automatically. That technology is the Intelligent Data Operating Layer (IDOL).

The proliferation of unstructured information is occurring in every industry from manufacturing to financial services, and so the IDOL platform is a truly horizontal technology that is used across every vertical.

Business Model

Indirect

Autonomy has over 400 Value Added Resellers (VARs) such as Accenture, IBM Global Services, Cap Gemini, HP and Wipro. Around 80% of Autonomy’s licence revenues come from this channel. Autonomy has an elite team of partner managers who attend occasional client meetings and ensure that customers receive the appropriate level of service, but these partners offer domain specific expertise and a global presence which allows Autonomy to run an incredibly efficient sales operation.

OEMs

Autonomy has over 400 Original Equipment Manufacturer (OEM) relationships with other major software vendors that build our technology into their products. These OEMs span every software sector from CRM to Product Lifecycle Management software. An OEM pays an upfront fee and then writes its new product which can take up to two years depending on its product roadmap and release cycle. Once the product is launched they pay a royalty stream of around 3 percent of product sales to Autonomy. This we would expect to expand overtime as OEM partners embed more IDOL functionality in subsequent product releases.

Licence

Customers who purchase a licence for Autonomy’s software initially pay an Average Selling Price (ASP) of around $400,000. A typical initial contract will likely include four of Autonomy’s 500 functions and around four connectors. The pricing model is based on three drivers of value: the number of users, the number of functions / connectors, and the amount of information being processed – any two will be prevalent in a particular use case. For example, in intelligence processing type applications it will be the amount of data rather than number of users that is the dominant factor, but in a corporate environment for a knowledge portal it may well be the large number of users that determines the pricing. In addition to the upfront licence payment these customers also pay around 15 percent support and maintenance, which is due annually.

SaaS and Hosted

Autonomy also operates Software-as-a-Service (SaaS) and hosted models, where the solution is run on hardware owned by Autonomy in one of our data centres. In fact, Autonomy runs the largest managed archive in the world at over 17 Petabytes of data.

Appliance

Currently a small part of the business focused on quick time-to-value and high return. Where customers have an urgent need to deploy IDOL, either for regulatory or commercial imperatives, we are able to provide a pre-installed licence on appropriate hardware to start generating an immediate return. The value of these solutions is attributable almost entirely to the functions offered by the licence, so although there are some hardware costs involved, the margin profile is not widely dissimilar to our traditional licence business.

Financial Model

Autonomy is one of the very rare examples of a pure software model. Many software companies have a large percentage of revenues that stems from professional services, because they have to do a lot of customisation work on the product for every single implementation. In contrast, Autonomy ships a standard product that requires very little tailoring, with the necessary implementation work carried out by approved partners such as IBM Global Services, Accenture and others. This means that after the cost base has been covered, for every extra dollar of revenue that comes in, you simply take off nine cents to get to the gross margin and then a further ten cents which is paid in commissions to our partner managers. That leaves approximately 80 cents which falls straight through to the bottom line. What this offers is a business model with a proven record of strong operating leverage and that is expected to continue to deliver industry leading operating margins and revenue to cash conversion.

Autonomy’s Technology — Understanding Meaning: An Evolution [Autonomy, June 26, 2008]

Evolution of Search

Autonomy Search Solutions

From the time of the very first computers, their inability to process human-friendly, “unstructured” information has posed a considerable challenge. The modern IT industry was founded on the principle that, for example, if the number in “Column 3” goes to zero, the computer will automatically order more stock for the warehouse – in other words, the position of a piece of information tells the computer what to do with it – and a tremendous amount of effort has been poured into sorting and distilling unstructured information into tidy rows and columns.

Increasingly, structuring information in this way does not represent a viable solution, not only because of the incredible amount of manual effort required but because by organizing information in this way, its richness and subtleties are lost. Consequently, attention has turned to finding alternative, more intelligent solutions to the problem of unstructured information and the journey towards integrated MBC began…

Keyword Search

Because computers were unable to understand the meaning of information, the seemingly obvious alternative was to simply search it in order to locate any keywords relevant to the desired subject. The problem with this approach is that the computer has no way of identifying what a given keyword means, and therefore cannot process the information afterwards. For example, if a user types in the letters “D-O-G” the computer has no concept of what that word means; it will simply identify all of the documents which contain that combination of letters, which might produce a list of results thousands of pages long.

Keyword Search +

In order to improve the results from straight-forward keyword searches, the technique was enhanced by adding a series of arbitrary rules so that the most relevant results would appear at the top of the list. For example, if the search term appears in the title of a document, five points are added to that result, and if it appears three times within the document, one point. This works to a certain extent but the important issue is that there is still no understanding of what a “D-O-G” is, or does. In addition, the rules have to be modified manually and become very costly to maintain every time a subject develops.

PageRank

On the Internet there is a simple trick to get around this problem because, in many cases, the most popular information is also the most relevant. The importance or popularity of a Web page is approximated by counting the number of other pages that are linked to it, and by how frequently those pages are viewed by other users. This works quite well on the Internet but in the enterprise it is doomed to failure. Firstly, there are no native links between information in the enterprise. Secondly, if a user happens to be an expert, perhaps in the field of gallium arsenide laser diodes, there may be no one else interested in the subject, but it is still imperative that they find relevant information.

Federated Search

As a result of new regulatory drivers such as the FRCP, enterprises need to be able to guarantee that a search has covered absolutely every piece of relevant information across potentially hundreds of different repositories throughout the enterprise. Most search engines are not actually capable of doing this so they ask the original repositories to perform the search – a process known as federated search.

Federated search is often advertised as an asset. However, it creates significant problems because it generates vast increases in network traffic. Every time the user enters a query, each and every repository has to do a search, so a repository that previously ran a search perhaps 0.01 times per user per day, starts to glow white-hot. More importantly, all of the results are searched using different algorithms which means that all of their relevance rankings are different and incompatible when compiling a results list. In addition, most of the underlying search algorithms used in the repositories are not compliant with the new FRCP. Consequently, federated search is not compatible with a pan-enterprise platform.

All of the approaches described up to this point fit squarely into the mid-enterprise search market. A technology which is limited to these capabilities is not suitable for a true pan-enterprise deployment, for reasons that will now become clear.

Conceptual Search

A critical leap forward came with the ability to actually “understand” the idea behind a given phrase, and retrieve information which is conceptually related, even when a particular keyword is not used. So for example, if the user types in the letters “D-O-G”, a conceptual search engine will retrieve all the information conceptually related to but not confined to the word “D-O-G”, perhaps information about a “hound” as well as “walks” and different breeds of dog, because it understands the idea represented by the word. This is incredibly powerful because critical information is often missed because users do not always use the same search terms.

Secure Search

Security is absolutely paramount to the enterprise and the challenge this poses is staggeringly complex, from protecting the enterprise’s intellectual property from unauthorized access, to ensuring internal compliance with an ever-growing list of regulatory requirements. Most users are not permitted to view most documents or even be aware that they exist. Typically, around 1/1000 documents should be available to each user and access privileges must be specific to each of the many underlying repositories in the enterprise. Achieving air-tight security without significant performance degradation is a considerable challenge.

Legal Search

In order to scale without impeding performance, some technologies fail to search each document in its entirety. This prevents users from retrieving valuable information and it exposes the enterprise to significant compliance risk. Such technologies begin to calculate the relevance of each document at indexing time; however, if at the beginning of the calculation a particular result appears to be irrelevant, the engine will stop calculating, effectively assuming the result is not relevant without reading all the way through. Consequently, a relevant snippet of information on the last page of a hundred page report could be overlooked and the legal consequences could be absolutely catastrophic. In fact, the company CEO could go to jail because the search failed to retrieve all of the information required by the court.

Audio and Video Search

The full potential of multimedia content is often not utilized due to the fact that it has traditionally taken considerable manual involvement to process. Consequently, intelligence lies dormant in resources such as recorded meetings, training videos and broadcast content. True Pan-Enterprise Search technology automatically captures, encodes and indexes television, video and audio content from any source and provides users with the ability to search this with pinpoint accuracy and treat rich media content in the same way as more traditional forms of information.

Categorize, Alert and Profile

When computers “understand” information, they can start to automatically process it and begin to bring information to the user rather than the other way round. For example, through forming an understanding, computers can automatically create taxonomies, alert users to new and relevant information in real-time or automatically profile an individual’s interests based on what they read and write, offering them interesting information without the need to search or connect with similar people.

Clustering, Scene Detection, Speaker Identification and Sentiment Analysis

Understanding information allows computers to cluster information, identifying inherent themes or clusters of conceptually similar information. In addition, using this approach it is possible to detect irregularities in everyday scenes for security purposes, identify well-known speakers in broadcast media and analyze conversations to detect positive or negative sentiment.

Integrated Meaning Based Computing

In examining the different approaches to the challenge of unstructured information, it becomes clear that the solution does not boil down to plain search. It is only through understanding the meaning of ALL information that computers are able to automatically process it and provide users with the ability to handle and maximize the value of this rich resource. MBC addresses the full range of information challenges and consequently forms the central requirement of major enterprise deployments all over the world.

More information on HP Strategy

HP Sets Strategy to Lead in Connected World with Services, Solutions and Technologies [March 14, 2011]

The convergence of cloud computing and connectivity is fundamentally changing how IT is delivered and how information is consumed. Powerful trends like consumerization, cloud computing and connectivity are redefining the way people live, businesses operate and the world works. Traditional on-premise, proprietary computing resources are gradually being complemented and even replaced by the massive, agile and open computing resources of the cloud. Meanwhile, the cloud is combining with mobility to create ubiquitous connectivity.

In HP’s view, a hybrid environment that combines the best of traditional environments with private and public clouds will be the prevailing model for many large enterprises for a long time. With its leading services portfolio, HP is well positioned to be the trusted partner of customers as they move from the traditional to the hybrid world. [HP Chief Executive Officer Léo] Apotheker committed to continue enhancing HP’s offerings across its broad hardware, software and services portfolio to meet evolving customer demands while also leveraging its core strengths to develop the cloud- and connectivity-based solutions of the future to meet the needs of consumers, small and midsize companies and large enterprises. This includes becoming a leading provider of cloud-based platform services.

In his presentation, Apotheker examined the impact of industry trends on users and businesses, and how those trends can best be met through HP’s portfolio, core businesses and scale. Of note in the speech:

  • HP announced it intends to leverage its position as a leading provider of cloud technology to develop a portfolio of cloud services from infrastructure to platform services. HP also signaled it plans to develop and run the industry’s first open cloud marketplace that will combine a secure, scalable and trusted consumer app store and an enterprise application and services catalog.
  • HP intends to build webOS into a leading connectivity platform. As the world’s No. 1 maker of PCs and printers, HP has the potential to deliver 100 million webOS-enabled devices a yearinto the marketplace, and HP plans to use that scale along with leading development tools to build a robust developer community that is eager to access every segment of the market and every corner of the globe.
  • At the event, highlighting an increasing focus to bring innovation to market faster, HP demonstrated a new “big data” appliance, leveraging the unmatched performance of HP computing power mated with real-time, high-speed analytics from Vertica Systems, which HP recently announced its agreement to acquire. HP expects to close the acquisition in its second fiscal quarter and have the HP-branded appliance ready for market immediately thereafter. The proposed HP Vertica solution will offer a choice of delivery options – from appliance, to software, and in the cloud.

Strategic priorities

HP’s strategy will be driven across a multitude of initiatives, focused on three strategic areas:

Cloud: HP plans to build a full cloud stack and help transition customers to hybrid cloud environments. HP intends to leverage its scale, reliability and security in its current hardware, software and services offerings. HP also plans to grow its higher-value services that offer greater strategic value.

Apotheker today unveiled the company’s plans to build an open applications marketplace that integrates consumer, enterprise and developer services. The platform will support multiple languages and will be open to third-parties. HP will vet applications for security and interoperability to facilitate an environment that is both trusted and open. A device-aware HP cloud will configure and send the appropriate services to the device that the customer is using, and connected devices will intuitively access services the customer needs.

Connectivity: HP also intends to be a leader in the area of connectivity. HP already has a globally distributed installed base in both the consumer and enterprise, and ships two printers and PCs a second, which will be webOS enabled– this huge, growing installed base of devices provides enormous opportunity upon which to build HP-, customer- and ecosystem-driven innovation. HP and its ecosystem of partners will continue to provide context-aware experiences for consumers, SMBs and large enterprises with secure information creation, digitization, transformation and consumption — anytime, anywhere.

Software: Through a build, buy and partner approach, HP intends to continue to enhance its leading management and security portfolio. Using that as a foundation, the company plans to address real-time analytics for “Big Data,” which is the combination of structured and the much faster growing unstructured data set. Upon completion, HP’s acquisition of Vertica will provide an important asset in this area. HP’s digitization offering also provides important information management capabilities that can be verticalized for specific industries. HP will continue to invest in leading-edge technologies and services that go beyond today’s limited point solutions to protect the modern enterprise and provide the security and information backbone that enterprises rely on for visibility and insight across distributed infrastructures and new hybrid environments.

In addition, Apotheker said HP will continue to build upon its financial strength, with a focus on performance that is expected to allow the company to expand into higher-value offerings, grow share of wallet by creating greater strategic value for customers, deliver on the power of the full HP portfolio and, therefore, feed the company’s core businesses. The focus on performance will come through a program focusing on growth, operational excellence and quality.

HP to Evaluate Strategic Alternatives for Personal Systems Group [Aug 18, 2011]

HP today announced that its board of directors has authorizedthe evaluation of strategic alternatives for its Personal Systems Group (PSG), including the exploration of the separation of its PC business into a separate company through a spin-off or other transaction.

PSG has a proud history of innovation and technological leadership as well as a strong operating track record and industry-leading profitability. PSG is the leading manufacturer of personal computers in the world and had annual revenues of approximately $41 billion in fiscal year 2010. PSG enjoys leading global market positions in consumer and commercial PCs.

HP is implementing a plan to fundamentally transform the company. An important component of the plan is focusing its investments, resources and management attention to drive higher value solutions to enterprise, small and midsize business and public sector customers. HP believes that the exploration of alternatives for PSG will help the company accomplish its strategic goals and pursue profitable growth and enhanced shareholder value. A post-transaction HP would continue to help its customers manage the information explosion and address their most critical needs through a portfolio that spans printing, software, services, servers, storage and networking.

“The exploration of alternatives for PSG demonstrates our commitment to enhancing shareholder value and sharpening our strategic and financial focus,” said Léo Apotheker, HP president and chief executive officer. “In March we outlined a strategy for HP, built on cloud, solutions and software to address the changing requirements of our customers, shaped heavily by secular market trends that are redefining how technology is consumed and deployed. Since then, we have observed the acceleration of these market trends, which has led us to evaluate additional steps to transform HP to meet emerging opportunities. We believe the acquisition of Autonomy, combined with the exploration of alternatives for PSG, would allow HP to more effectively compete and better execute its focused strategy.”

The personal computing market is quickly evolving with new form factors and application ecosystems. Given these realities, HP believes it is in the best interests of the company and its shareholders to explore ways for PSG to position itself to address these rapid changes and maintain its technological and market leadership positions.

“We believe exploring alternatives for PSG could enhance its performance, allow it to more effectively compete and provide greater value for HP shareholders,” said Apotheker. “PSG is a world-class scale business with a leading market share position and a highly effective supply chain and broad reach and go-to-market capabilities. We believe there are alternatives that could afford PSG more autonomy and flexibility to make strategic investment decisions to better position the business for its customers, partners and employees.”

Supply chain battles for much improved levels of price/performance competitiveness

Current snapshot:

Intel rejects 50% Ultrabook CPU price cut demand from notebook players [Aug 16, 2011]

Intel’s Oak Trail platform, paired Atom Z670 CPU (US$75) with SM35 chipsets (US$20) for tablet PC machine, is priced at US$95, already accounting for about 40% of the total cost of a tablet PC, even with a 70-80% discount, the platform is still far less attractive than Nvidia’s Tegra 2 at around US$20. Although players such as Asustek Computer and Acer have launched models with the platform for the enterprise market, their machines’ high price still significantly limit their sales, the sources noted.

As for Ultrabook CPUs, Intel is only willing to provide marketing subsides and 20% discount to the first-tier players, reducing the Core i7-2677 to US$317, Core i7-2637 to US$289 and Core i5-2557 to US$250.

As for Intel’s insistence, the sources believe that Intel is concerned that once it agrees to reduce the price, the company may have difficulties to maintain gross margins in the 60% range and even after passing the crisis, the company may have difficulty in maintaining its pricing. Even with Intel able to maintain a high gross margin through its server platform, expecting Intel to drop CPU prices may be difficult to achieve, the sources added.

Update: ASUStek seems to maneuver by far the best among them (special early ultrabook engagement with Intel, with popssible higher discount, in addition to exploiting the Tegra 2 opportunity best via the only successful so far EeePad Transformer):
Asustek expects better business performance in 2H11 [Aug 17, 2011]

Asustek Computer expects its performance in the second half of 2011 to be better than that of fellow Taiwan-based companies, according to CFO David Chang.

Asustek is likely to hit record quarterly revenues in the third  quarter and is optimistic about business operation in the fourth mainly due to the launch of second-generation Eee Pad Transformer tablets and ultrabook notebooks, Chang said.

Asustek aims at a 14% market share for notebooks in China, and
became the largest vendor in Eastern Europe’s notebook market in the second quarter. In addition, Asustek is poised to make forays into Latin America, especially Brazil and Mexico.

Asustek expects to ship 14 million notebooks and 4.5-5 million Eee PCs in 2011, Chang indicated. Asustek shipped 11.4 million motherboards in the first half and expects to ship 22.5-23 million for the year.

Tablet players expected to cut price to digest inventory overstock [Aug 16, 2011]

Non-Apple tablet PC players, facing the fact their devices are having weaker sales than their order volumes, while demand from the retail channel has been quickly shrinking, are expected to start cutting their tablet prices by the end of September to digest inventory and minimize losses, and the decisions are expected to trigger a new price war within the tablet industry, according to sources from notebook players.

The sources pointed out that most non-Apple tablet players had weaker-than-expected performances and Asustek, which had a rather better performance, had shipments of 700,000 tablets from May to July with actual sales only reaching 500,000 units.

RIM and High Tech Computer (HTC) are already placing their hopes in 2012 with Samsung and Motorola both seeing their tablet demand weaker than expected, while some other players such as Acer are gradually reducing their orders.

Motorola, Hewlett-Packard (HP), Asustek and Acer have all recently reduced their tablet prices with the lowest price currently at US$370; however, with their inventory will become harder to digest, the sources believe there will be at least two waves of price cuts from the end of September to the year-end holiday, reducing the tablet average price level to US$350 and may even drop further to US$300 in the future.

More: Acer & Asus: Compensating lower PC sales by tablet PC push[March 29, 2011 with updates upto Aug 2, 2011]

AMD’s Bright Outlook Likely to Boost Taiwan’s Supply Chain [Aug 16, 2011]

Taiwan’s IC supply chain is expected to benefit from good business performance of Advanced Micro Devices Inc. (AMD), which is projected to outperform archrival Intel Corp. in the third quarter with increased shipment of accelerated processing units (APUs).

The Taiwan supply chin is mainly composed of manufacturers including foundry Taiwan Semiconductor Manufacturing Co. (TSMC), packager Siliconware Precision Industries Co., Ltd., tester STATS ChipPAC Taiwan Semiconductor Corp., and substrate maker Nanya Printed Circuit Board Corp.

AMD estimates its revenue for the third quarter to rise 8-12% from the second quarter, compared with Intel’s projected 8% revenue growth. According to AMD, it has enjoyed robust APU shipments since the second quarter, with both its PC and laptop APU shipments hit new highs.

AMD has contracted TSMC, currently the world’s No.1 pure foundry, to make its Ontario [C-series], Zacate [E-series], and Desna [Z-series, specific for tablet PCs, a power optimized version of C-series, which are also for ultra-thin notebooks: Z-01 of 5.9W vs. C-50 9W in both cases with two 1 GHz “Bobcat” CPU cores + 6250 GPU] processors using 40-nanometer process technology as well as its Hudson chips using 65nm process technology.

While increasing foundry outsourcing to TSMC, AMD has augmented packaging and testing contracts to Taiwan’s providers as well. Nanya is also expected to land contracts via Japanese partner NGK Spark Plug, which has directly received substrate contracts from AMD.

In the second quarter, AMD saw its revenue slightly dip 2% from the first quarter to US$1.57 billion, while its gross margin was 46%, up from 45% recorded in the first quarter this year.

AMD Llano processor shipments reach 1.3-1.5 million units in July [Aug 4, 2011]

AMD shipped about one million Llano [A-series, for mainstream notebooks, all-in-one PCs and desktop PCs: with up to four up to 2.9 GHz x86 CPU cores and with an integrated DirectX 11-capable discrete-level graphics unit that features up to 400 Radeon cores along with dedicated HD video processing on a single chip] APUs in June and 1.3-1.5 million units in July, and with the appearance of the company’s new Llano APUs in the fourth quarter, annual shipments of Llano in 2011 should reach 7.5-8 million units, according to sources from motherboard players.

The sources pointed out that AMD is pushing its 40nm-based C series (Ontario) and E series (Zacate) APUs for the entry-level market, while it is pushing 32nm-based Llano-based APUs for the mid-range to performance and mainstream markets, and is pushing 32nm AM3+ FX series (Zambezi) processors for the high-end market in the fourth quarter.

In 2012, AMD will launch a new APU series codenamed Krishna using a 28nm process from Taiwan Semiconductor Manufacturing Company (TSMC), targeting mini PCs, and all-in-one PCs with an APU series codenamed Trinity to replace Llano for the mainstream market, adopting a 32nm process from Globalfoundries. For the high-end market, AMD will launch an APU series codenamed Komodo.

AMD shipping Llano APUs; prices leaked [May 23, 2011]

AMD has started shipping its Llano APUs to notebook clients and will begin to market the APUs to channels in July 2011, according to sources from notebook makers.

AMD targets to ship one million notebook-use Llano APUs in June, 1.5 million in July, and a total of 8-9 million for the whole of 2011, revealed the sources, citing AMD’s internal estimates.

If the shipment goals are realized, AMD will be able to boost its share in the notebook CPU segment to 15% by the end of the year, the sources commented.

Additionally, AMD will also launch six Llano and four Bulldozer APUs for desktops.

AMD: Llano and Bulldozer APU prices (k unit)
Core Model Price Competing Intel model
Llano/quad-core A8-3550P US$170 Core i5-2300
Llano/quad-core A8-3550 US$150
Llano/quad-core A6-3450P US$130 Core i3-2120/2010
Llano/quad core A6-3450 US$110
Llano/dual-core A4-3350P US$80 Pentium G6960/6950 and Sandy Bridge G800/600
Llano/dual core E2-3250 US$70 Pentium G620
Bulldozer/octo-core FX-8130P US$320 Core i7 2600K/2600
Bulldozer/octo-core FX-8130 US$290
Bulldozer/6-core FX-6110 US$240 Core i5 2500K/2500
Bulldozer/quad-core FX-4110 US$220

More: Acer repositioning for the post Wintel era starting with AMD Fusion APUs[June 17, 2011]

Apple cancels supply schedule of iPad 3 for 2H11 [Aug 16, 2011]

US-based tablet PC players Apple has recently canceled its iPad 3 supply schedule for the second half of 2011, forcing other tablet PC brand vendors that are set to launch same-level product to compete, to follow suit and delay their launch; however, supply of the iPad 2 in the second half will still be maintained at 28-30 million units, according to sources from the upstream supply chain.

Apple was originally set to launch its iPad 3 in the second half of 2011 with a supply volume of 1.5-2 million units in the third quarter and 5-6 million in the fourth quarter, but Apple’s supply chain partners have recently discovered that the related figures have all already been deleted, the sources pointed out.

The sources believe that the yield rate of the 9.7-inch panel that feature resolution of 2,048 by 1,536 may be the major reason of the supply delay since such panels are mainly supplied by Japan-based Sharp with a high price and Apple’s other supply partners Samsung Electronics and LG Display are both unable to reach a good yield. Since Apple is unable to control a certain level of supply volume, the iPad 3 is unlikely to be mass produced as scheduled, the sources added.

Sources from panel players also pointed out that the 9.7-inch panel with high resolution requires a much larger backlight source and a single edge light bar is hardly able to reach satisfaction levels. Due to iPad 3’s requirements over the physical thinness, rich color support and toughness will all conflict with the panel’s technology restrictions; therefore, this could cause a delay in the launch.

In June, LG Display supplied three million panels for the iPad 2 with Samsung supplying 1-1.5 million units and Chimei Innolux (CMI) 10,000-20,000 units. In July, LG’s supply volume dropped to 2.8 million units with Samsung maintaining its same levels, and CMI’s volume increased to 450,000-500,000 units.

Update: CMI fails to become iPad 3 panel supplier, say sources [Aug 19, 2011]

Chimei Innolux (CMI) has failed to become a LCD panel supplier for the Apple iPad 3 due to technological hurdles, according to industry sources.

CMI has cut into the supply chain of iPad 2, which uses IPS panels, but the new Apple tablet is more demanding in terms of resolution, the sources said. The iPad 3 will feature a 9.7-inch panel with resolution of 2,048×1,536 compared to the iPad 2’s 1,024×768.

CMI has been developing panels trying to meet the iPad 3 specifications, but problems with transmittance and yield rates of the panels have resulted in its failure to receive certification for the iPad, the sources said.

CMI began developing IPS panels last year after receiving license from Hitachi in July 2010. The license covers IPS, Super-IPS, Advanced-Super IPS, IPS-Pro, and IPS-Pro-Prolleza.

CMI previously scheduled mass production of IPS panels to begin as early as the end of 2010 or early 2011. But low yield rates delayed the mass production until recent months. The maker’s IPS panel monthly output in July 2011 reached nearly 500,000 units. It is looking forward to an output of one million units in August 2011, the sources said.

The sources noted that the iPad 3’s resolution requirement of 2,048×1,536 pixels is also a challenge even for iPad panel regular suppliers such as LG Display (LGD) and Samsung Electronics. Apart from the two Korea makers, Japan’s Sharp has als been selected to supply panels for the iPad 3, the sources said.

They noted that CMI still stands a chance of becoming a regular supplier for iPad 3 if it can improve its panel quality to meet Apple’s requirements. The maker recently invested NT$800 million to NT$1 billion [US$28 million to US$35 million] to improve manufacturing facilities, the sources said.

Chimei Innolux Continues Suffering Loss in Q2 [Aug 16, 2011]

Chimei Innolux Corp., the largest maker of thin film transistor-liquid crystal display (TFT-LCD) panels in Taiwan, reported a loss of NT$13 billion (US$448.3 million) in the second quarter, deeper than institutional investors` forecast.

Industry sources said that the four major makers of large-sized TFT-LCD panels, i.e. AU Optronics Corp. (AUO), Chimei Innolux, Chunghwa Picture Tubes, Ltd. (CPT) and HannStar Display Corp., together reported total loss of about NT$120 billion (US$413.8 million [US$4.15 billion]) in the past about one year.

Some institutional investors said that the all-size panel prices are expected to fall slightly, implying that makers` losses in the third quarter would not be less than second quarter`s.

At its recent half-year online shareholder meeting, Chimei adjusted down its capital spending to NT$50 billion to NT$60 billion (US$1.7 billion to US$2.1 billion) from NT$75 billion to NT$70 billion (US$2.6 billion to US$2.4 billion) lowered previously and NT$100 billion (US$3.4 billion) announced in early this year. Chimei said that this year the company would focus mainly on high-level equipment and R&D projects for touch-panel technology.

AUO, Chimei Innolux`s major rival and the No. 2 panel maker in Taiwan, recently also adjusted down its capital spending goal to under NT$70 billion (US$2.4 billion) from NT$90 billion to NT$95 billion (US$3.3 billion to US$3.1 billion).

Chimei Innolux is a merger between three companies, including Chi Mei Optoelectronics Corp. (CMO), Innolux Display Corp., and TPO Displays Corp. (TPO), formed in the second quarter of 2010, and began reporting loss starting the third quarter of last year that has continued for four seasons.

AUO reported an accumulated loss of NT$36 billion (US$1.24 billion) in the past three quarters.

Eddie Chen, Chimei Innolux`s chief financial officer, said that his company focused on shipments of core businesses and cut many system assembly works in the second quarter. The company`s second-quarter shipments of large-sized panels increased about 10% quarter-on-quarter (QoQ), but its revenue generated from small/medium-sized panels fell 18.4% QoQ due to the falling panel prices. J.C. Wang, president of Chimei Innolux`s Southern Taiwan Science Park (STSP) branch, pointed out that his company decided to cut system-assembly business because it takes too many labor forces and that`s not his company`s core competitiveness.

Wang said that the third quarter is a traditional high season, but the market now seems relatively weaker than it should be. In the second quarter, Chimei Innolux`s capacity utilization rate was about 80%, the company said that it would adjust according to market conditions.

LCD maker CPT still deep in red in second quarter [July 30, 2011]

LCD panel maker Chunghwa Picture Tubes Ltd (CPT, 中華映管) yesterday reported its 12th consecutive quarterly loss as prices for slim-screen panels for televisions and computers dropped on sluggish end demand.

The company added that outlook for the third quarter remained sluggish, with demand expected to fall below the seasonal norm.

However, Chunghwa Picture said it has no plans to cut its capital spending this year of between NT$2 billion (US$69 million) and NT$2.5 billion, which would be used to improve its equipment to produce high-definition flat panels used in tablet devices and smartphones.

Earlier this week, its bigger local rival, AU Optronics Corp (友達光電), said it planned to slash capital spending by 30 percent.

In the quarter ending June 30, Chunghwa Picture’s losses widened to NT$3.13 billion [US$108 million] from losses of NT$2.33 billion [US$80 million] in the first quarter. The Taoyuan-based company posted losses of NT$1.5 billion in the second quarter of last year.

“Market demand, especially for TVs and IT products [computers], slumped in the first half. Oversupply caused panel prices to drop further,” company president Lin Sheng-chang (林盛昌) said during a teleconference with investors.

“As the visibility for IT panels is unclear, we will make inventory management our priority,” Lin said.

Days of inventory increased to 37 days last quarter from 31 days in the first quarter, the company said.

The fragile economic recovery in the US and Europe is expected to curtail demand for consumer electronics, while demand for notebook computers should pick up slightly after new models hit the shelves, Chunghwa Picture said.

To combat these difficult times, Lin said the company would have to accelerate its shift to high-margin products, such as tablet panels, touch sensors and smartphone screens, in the second half.

Its newly formed strategic partnership with the world’s biggest e-paper display supplier, E Ink Holdings Inc (元太科技), will help it reach this goal, Lin said.

Last week, E Ink agreed to spend NT$1.5 billion [US$52 million] to subscribe to Chunghwa Picture bonds. Chunghwa Picture agreed to supply LCD panels to E Ink.

Besides e-paper displays, E Ink also supplies high-definition flat panels to LG Display and tablet device makers.

Shipments of LCD panels used in smartphones, tablets and consumer electronics should grow by 20 percent to 25 percent in the second half, from 200 million units shipped in the first half, Lin said.

Last quarter, revenues from small-and-medium LCD panels used in tablets and smartphones accounted for a larger share, 42 percent, of Chunghwa Picture’s total revenues of NT$15.93 billion, from 37 percent in the prior quarter, according to the company’s financial statement.

Chunghwa Picture also said it would terminate its money-losing cathode-ray-tube (CRT) business. The company plans to revamp its CRT factories in Malaysia and in Fuzhou, Fujian Province, and shift to touch panel assembly.

HannStar posts operating loss [Aug 15, 2011]

HannStar Display has announced unconsolidated results for second-quarter 2011, with total sales rising 10% sequentially to NT$1.15 billion (US$387.4 million). But it recorded an operating loss of NT$1.04 billion and a net loss of NT$ 1.57 billion [US$54 million], which was translated into a loss per share of NT$ 0.27.

Gross, operating, and net margin in the second quarter were 7%, -9%, and -14% respectively. Earnings before interest, taxes, depreciation and amortization (EBITDA) was 1%.

HannStar said the operating loss in the second quarter was the result of an effort to enlarge its manufacturing capacity in Nanjing, China, which cost it an extra NT$1.88 billion [US$65 million] in operation.

Capacity utilization of HannStar was nearly full in second-quarter 2011. Small- to medium-size panels under 10-inch took up about 45% of its total revenues. Notebook panels accounted for 10% and monitor panels 45%.

HannStar is expected to enhance notebook panels’ share to 15% and small- to medium-size panels to 55% in third-quarter 2011. Monitor panels’ share will be lowered to around 30%.

HannStar expects small- to medium-size panels’ share to reach 60% by end of 2011 and notebook panels to grow to 20%.

Explanatory excerpts from Pixel Qi’s first big name device manufacturing partner is the extremely ambitious ZTE [Feb 15, 2011, with updates up to June 3, 2011]

to engage some of the largest factories that have ever been made, and for that to work their economics need very high volumes. We need to have customers who really commit to large purchase orders almost before we start to design.”

The display business can be considered to be the worlds biggest non-profit industry, the 5 biggest LCD makers who produce 90% of the worlds LCDs, produce for $120 Billion in screens every year but can only make small profit margins out of that because of the strong competition and the large volumes shipped. Those companies that produce the worlds LCD screens have very high costs, very high risks, little flexibility.

Qualcomm Snapdragon SoCs with a new way of easy identification

Follow-up: Next-gen Snapdragon S4 class SoCs — exploiting TSMC’s 28nm process first — coming in December [Aug 9 — Nov 16, 2011]

Update: Qualcomm Snapdragon S1-S2-S3 SoCs lineup in production as of 16-Nov-2011

Qualcomm Snapdragon S1-S2-S3 SoCs lineup in production as of 16-Nov-2011

End of Update

In the last 24 hours there has been an incredible barrage of posts about “rebranding Snapdragon”. These posts are providing a kind of summary of changes referring to Qualcomm as the source of the information but not linking to that. When one finally finds the Qualcomm source it comes out that there is no rebranding in the conventional sense just a new classification for existing SoCs. So the individual SoC identifiers are the same, there is just a possibility to refer to them by a higher level of indentification which is related to the class of systems they are targeted to.

Because this is much more important new information than the non-existant rebranding I am first copying here the Qualcomm source and then some additional important information regarding their Adreno graphics capabilities and Qualcomm’s latest strategic moves to enter mobile gaming in a very big way. A report of current assesment of that is also available: Qualcomm hopes to make game consoles obsolete [Aug 4, 2011] Anandtech has published the slides of the Qualcomm event: Qualcomm’s March into the Gaming Market [Aug 3, 2011] and draws attention to this particular slide:

Please note the “Wireless Display” option which comes via the WCN3660  companion chip to Snapdragon S4 class of SoCs from the recently acquired Atheros (now Qualcomm Atheros). That chip will support the emerging Wi-Fi Display standard (said not to be confused with Intel’s WiDi) for streaming video directly from a smartphone or tablet to a Wi-Fi enabled display or television. (See also Wireless Gigabit Alliance – WiGig where Atheros is a member which is competing with Wireless HD where one of the members is Intel)

A Simple Way to Identify Which Snapdragon System is Right for You [Tim McDonough Vice President, Marketing, Qualcomm QCT on Qualcomm’s blog: OnQ, Aug 3, 2011]

Today Qualcomm is introducing a new way for our customers, our industry colleagues and consumers to identify the Snapdragon chipset that fits their needs. Those of you who know us well know that our current Snapdragon family of processors has grown to encompass over 15 different chips with feature sets that target mass market smartphones all the way through high end smartphones and tablets. And, although our Snapdragon chips are called processors, they are really system on chip solutions. Inside each Snapdragon chip are multiple hardware subsystems including CPUs, GPUs, modems, multimedia processors, GPS, DSPs, sensors, as well as advanced management software.

And all of these components are integrated into a single small chip that is designed with mobile in mind. The result is that Snapdragon processors deliver outstanding performance and longer battery life. But with such a deep roadmap of chips, our customers and industry colleagues have told us that it has become increasingly difficult to quickly and easily identify which chips are best suited for different devices.

We have arrived at a simple solution. Now our Snapdragon processors are classified into three system classes, System 1 (S1), System 2 (S2) and System 3 (S3): Simple names which denote performance and feature set. Moving forward, we will continue to add new classes as our roadmap grows. Without further ado, I present you with the Snapdragon S1, Snapdragon S2 and Snapdragon S3.

Snapdragon S1: Mass Market Smartphones [note: Up to 3G HSPA]

Qualcomm Snapdragon S1 Mobile Processor -- 3-Aug-2011

Snapdragon S1 processors offer great performance and longer battery life for today’s mass market smartphones. Boasting CPU speeds of up to 1Ghz, Adreno 200 graphics and a 3G modem, Snapdragon S1 processors are powering some of today’s coolest devices.

“The HTC Wildfire S could be the darling of the affordable Android handsets……..The most important factor for us is that we’ve found the HTC Wildfire S capable to performing those core tasks without too much of a compromise.”
Pocket-Lint’s review of the HTC Wildfire S powered by the Snapdragon S1

The Snapdragon S2: High Performance Smart Phones & Tablets [note: 3G HSPA+]

Qualcomm Snapdragon S2 Mobile Processor -- 3-Aug-2011

The Snapdragon S2 processor is an excellent choice for high performance smartphones and tablets. The S2 class of processors have some of the same design foundations as the S1 class but with some key performance improvements including a single core Scorpion CPU that clocks to speeds of up to 1.4Ghz, the fastest single core mobile CPU in the market, and the Adreno 205 GPU, which is designed to provide a 2x performance boost over the Adreno 200 GPUs. Web browsing and multimedia performance gets a serious performance boost too. With just one CPU core, the Snapdragon S2 can offer smoother graphics than other solutions that use dual-core CPUs.

“You can see clearly in the video that Qualcomm’s 2nd generation, single-core processor chewed up YouTube’s 720p Flash content without a hitch while the others failed to keep up in a smooth fashion.”
Phandroid– (6/2011)

Snapdragon S3: Multi-tasking & Advanced Gaming [note: 3G HSPA+, 1440×900/1080p HD/Dolby 5.1, Stereoscopic 3D capture & playback]

Qualcomm Snapdragon S3 Mobile Processor -- 3-Aug-2011

Here’s where things really get kicked up a notch. Simply put, the Snapdragon S3 is designed to offer 2x the graphics performance of the S2 and 4x the graphics performance of the S1. The S3 class of processors also feature a dual core Scorpion CPU at speeds of up to 1.5Ghz per core. With a more powerful [Adreno 220] GPU and a fast dual core CPU, the things our customers are starting to do with the S3 are pretty incredible. Take the HTC EVO 3D, this smartphone features a front-facing camera for video calls, two cameras on the back to create 3D photos and a display that uses a parallax barrier so you can view 3D photos without 3D glasses!

This performance boost also allows our customers to create devices with bigger and sharper displays. The Snapdragon S1 and S2 are typically in devices with 3-4-inch displays that offer a resolution of 800×480. The Snapdragon S3 in the HTC EVO 3D drives a 4.3-inch display with a resolution of 960×540, while the HP TouchPad tablet uses a monstrous 10.1-inch with a resolution of 1024×768.

The Snapdragon S3 Mobile Processor and Your HDTV [Aug 2, 2011] [note the “extend that experience to a 40-inch display” both in the video and the attached caption]

The latest chip in Qualcomm’s Snapdragon family is the Snapdragon S3 mobile processor featuring a high-performance dual-core Scorpion CPUs up to 1.5Ghz and an Adreno 220 GPU. Any smartphone or tablet equipped with a Snapdragon S3 processor can not only deliver great battery life and stunning graphics on a 4-inch display but can even extend that experience to a 40-inch display [by plugging your smartphone into a 40″ TV via HDMI]. Web browsing, video playback and high-quality gaming will still remain fluid. You can find Snapdragon S3 mobile processors in the HTC EVO 3D, HTC Sensation 4G, T-Mobile myTouch 4G smartphones and the HP TouchPad tablet. For more information about Snapdragon: http://www.qualcomm.com/snapdragon

To maintain great battery life while also improving performance, Qualcomm designed the S3’s Scorpion CPU cores to be asynchronous, so each core can operate at different frequencies and voltages for superior performance at lower power. The S3 class of processors also support a host of video codecs and multimedia acceleration. You can learn more about the devices that use Snapdragon processors in our Snapdragon Showcase

“It (The Snapdragon S3) has arguably the best CPU and GPU in the dual-cores…The CPU being asynchronous can be a real battery saver… including NEON and has a 128-bit pipeline rather than 64 bit found in all other CPU thus a better speed…About multimedia, Its one of the best when it comes to multimedia… Qualcomm is also known for the stability of chipsets due to the fact that everything is on the chipset itself rather than making manufacturers add it.”
Droid Gamers—Beastly Dual-Core Android Devices: A Rundown on Each Chipset (5/2011)

Coming Soon: Snapdragon S4—Next Generation Devices

The Snapdragon S4 class will include the newest generation of Snapdragon processors and will feature a new CPU microarchitecture [Krait instead of the previous Scorpion] and integrated 3G/LTE multimode. The S4 will stay true to its roots by delivering exceptional battery power—a 65% decrease in power consumption, yet at the same time boost performance by 150%. This combo is going to create mobile products that offer graphics [Adreno 225 and up] that are comparable to current gaming consoles.

You’re also going to see Snapdragon S4 processors in new form factors and running a full blown desktop operating system. We’re currently working with Microsoft so the S4 can run the next version of Windows—Windows 8.

Stay tuned for big things. Or should we say small things?

Snapdragon™ Adreno 220 GPU Powers “Desert Winds” Game at MWC [Brent Sammons, Graphics Product Manager, Qualcomm QCT on Qualcomm’s blog: OnQ, March 1, 2011]

Attendees of Mobile World Congress 2011 got to see the newest generation of the Adreno GPU, Adreno 220, in action as part of the new Desert Winds game demo at Qualcomm’s booth. The graphics performance, new 3D effects, and level of graphical realism now possible with the dual-core Snapdragon MSM8660 chipset and its Adreno 220 GPU grabbed the attention of virtually all passing by the booth.

Snapdragon’s Adreno GPU – Desert Winds Game Demo [note the “console quality” differentiation in the attached text]

Check out the console-quality mobile 3D graphics available on Snapdragon’s Adreno GPU. Learn more about Snapdragon: http://www.qualcomm.com/snapdragon

Desert Winds was shown in stereoscopic and non-stereoscopic 3D via HDMI out to a 55-inch HD LCD display. As with Qualcomm’s other dual-core Snapdragon MSM8660 demos at the show, the new Desert Winds game was running on the Snapdragon Mobile Development Platform (MDP), which is a device available to developers who want early access to Snapdragon chipsets and Adreno GPUs. (Get more info on the Snapdragon MDP and how to purchase at www.bsquare.com.)

The Desert Winds game ran in interactive and non-interactive modes, giving users the ability to play the game and help the game’s heroine, Amira, slay the giant scorpion character, Alacran, and his army of scorpions.

Developed by Southend Interactive, the game showcases the console-quality 3D graphics and high-end effects made possible by the Adreno 220 GPU, such as:

  • Advanced particle physics and vertex skinning
  • Full-screen post-processing shader effects
  • Dynamic lighting with full-screen alpha blending
  • Real-time cloth simulation
  • Advanced shader effects like dynamic shadows, god rays, bump mapping and reflections
  • 3D animated textures

Qualcomm will continue to use the Desert Winds game to showcase the ever-evolving, advanced capabilities of the Adreno GPU, with more 3D effects, smoother stereoscopic HD gaming, market-leading performance, and industry leading power-efficient 3D graphics. Based on our research (*), the Adreno 220 GPU in Qualcomm’s dual-core Snapdragon MSM8660 offers twice the performance of the GPU in other leading dual-core ARM9-based chips.

With more Android devices based on Snapdragon and Adreno and with over 100 games optimized for Snapdragon and Adreno, it seems clear that the mobile industry is already well aware of the many advantages that Snapdragon and its Adreno GPU.

In my opinion, it was apparent at this year’s Mobile World Congress that Qualcomm is well-positioned to continue its strong momentum in providing OEMs and 3D game developers with a powerful and efficient graphics platform that brings more of the industry’s latest and best 3D games to more smartphones, tablets and laptops everywhere.

_____

(*) Source Qualcomm – Average of Industry benchmarks composed of Neocore, GLBenchmark, 3DMM and Nenamark

Anandtech’s reports are not contradicting that:
Hands on and Benchmarks of two MSM8x60 Phones – HTC Sensation 4G and HTC EVO 3D [June 3, 2011]
Dual Core Snapdragon GPU Performance Explored – 1.5 GHz MSM8660 and Adreno 220 Benchmarks [March 30, 2011]

GLBenchmark 2.0

… GLBenchmark 2.0 is the best example of an even remotely current 3D game running on this class of hardware–even then this is a bit of a stretch. GLBenchmark 2.0 is still our current go-to test as it is our best best for guaging real world performance, even across different mobile OSes. … Comparatively, the 1.5 GHz MSM8660 with Adreno 220 is 2.2x faster than the 1 GHz MSM8655 with Adreno 205.

Quadrant 3D and 2D

Last and definitely least (at least in my mind) on the list is Quadrant, which has unfortunately become something of a de-facto one stop shop for benchmarking Android devices, famously spitting out one easy to digest score.

… Adreno 220 shows anywhere from 2-5x performance gains over Adreno 205.

Final Words

When we first started looking at Qualcomm’s Snapdragon SoCs we were impressed by their CPU performance but largely put off by the performance of the Adreno 200 GPU. The 45nm Snapdragon with the Adreno 205 GPU changed things as it roughly doubled GPU performance. The Adreno 220 brings about another doubling in GPU performance. …

How Snapdragon is Changing the Mobile Gaming Industry [Brent Sammons, Graphics Product Manager, Qualcomm QCT, Feb 10, 2011]

Qualcomm Shows Strong Support of the Mobile 3D Gaming Ecosystem at GDC [Brent Sammons, Graphics Product Manager, Qualcomm QCT on Qualcomm’s blog: OnQ, March 18, 2011]

Qualcomm has been clearly demonstrating its support of the entire mobile 3D gaming ecosystem at recent conferences like this month’s Game Developers Conference (GDC) in San Francisco. This support showed up as a press release with Gameloft; a new video with Gameloft and NAMCO BANDAI Games America; joint marketing activities with Sony Ericsson around their new PlayStation Certified Xperia Playdevice; a GDC speaker session featuring presentations by leading mobile developers Southend Interactive and Polarbit; a new Snapdragon mobile 3D gaming ecosystem video and a very well-attended and well-received party at Ruby Skye!

In the press release Qualcomm announced its agreement with Gameloft to deliver an enhanced, Snapdragon-optimized experience for Gameloft’s premier HD mobile 3D game titles like “SpiderMan Total Mayhem HD,” “Real Football 2011 HD,” “GT Racing: Motor Academy HD” and “Modern Combat 2: Black Pegasus.” These will be optimized for current and future Snapdragon processors, such as the MSM8x55 with its Adreno 205 GPU (currently shipping), and the dual-core MSM8x60 with its Adreno 220 GPU.

In a video shot during GDC, Baudouin Corman (Vice President Publishing of Americas for Gameloft) and Dominic Lobbia (Senior R&D Director of NAMCO BANDAI Games America) speak to their game optimization efforts and the value that Snapdragon and Adreno bring to the table. They cite the strong adoption of Snapdragon by manufacturers of high-end Android and Windows Mobile 7 devices, the high quality and great performance of mobile 3D graphics powered by Snapdragon and Adreno, as well as the valuable graphical optimization and development tools Qualcomm offers like the Adreno Profiler. (For more information on the Adreno tools, go to http://developer.qualcomm.com/dev/gpu/tools.)

Game Developers Explain the Value of the Adreno GPU [March 18, 2011]

Gameloft and NAMCO BANDAI explain the value of Snapdragon’s Adreno for game optimization efforts.

Conference attendees also had the opportunity to get the whole story about Qualcomm’s mobile 3D gaming ecosystem support via a new video that was playing just outside the South Hall Expo Floor. The video features Qualcomm’s Vice President of Product Management, Raj Talluri, who explains that there is a huge ecosystem of Snapdragon game developers and games optimized to Snapdragon, that the majority of Android phones use the Snapdragon processor, and that all Windows Phone 7 products use the Snapdragon processor. Therefore, he explains, developers are able to reach a large audience of smartphone and tablet users.

Qualcomm’s Mobile 3D Gaming Ecosystem [March 20, 2011]

Raj Talluri, VP of Product Management, explains the Snapdragon game developers ecosystem.

“Hey, You Got Your Snapdragon Chipset in My Xperia™ PLAY” [Brent Sammons, Graphics Product Manager, Qualcomm QCT on Qualcomm’s blog: OnQ, May 27, 2011]

Unlike the chocolate and peanut butter in Reese’s chocolate peanut butter cups, it was no accident that Snapdragon and the Xperia PLAY found themselves together. This week Sony Ericsson launched the Xperia PLAY at Verizon, with Qualcomm’s Snapdragon MSM8255 mobile processor with Adreno 205 Graphics Processing Unit(GPU) inside.

It is the world’s first PlayStation-certified phone (and perhaps the world’s most gaming-centric smartphone). And Sony Ericsson chose Snapdragon and Adreno to power it. If you’re wondering why, check out this recently posted Qualcomm video, featuring Aaron Duke and Kim Ahlstrom from Sony Ericsson, talking about the Xperia PLAY with Snadragon’s Adreno GPU.

Snapdragon’s Adreno [205] GPU powers the Xperia PLAY [May 26, 2011]

Sony Ericsson explains the value of Snapdragon with Adreno in the Xperia PLAY for superior game play.

The Snapdragon MSM8255 chipset and Adreno 205 GPU together provide a fun and immersive gaming experience via the very device you will want to carry with you everywhere all the time – the new Xperia PLAY smartphone.

Not only does Snapdragon contain powerful graphics processing — enough to rival some in-home console systems — but it also has a lot of other valuable integrated features like video capture and playback, music playbackand a 1.4 GHz CPU.

The Xperia PLAY has a 4-inch 854×480 display, a 5 megapixel rear-facing camera, a VGA front-facing camera, 512 MB of RAM, and is based on Android 2.3 Gingerbread. Perhaps more importantly, the device comes with seven preloaded games. And you can download over 50 more games via Verizon’s VCAST apps store.

I would say that another big reason that Sony Ericsson chose to work with Qualcomm is that Qualcomm is really into mobile gaming!Keep your eyes peeled in the coming days for more details on just how big into gaming Qualcomm has become.

In the case of the Xperia PLAY, Qualcomm worked closely with Sony Ericsson not only to establish connections with some of the best mobile game developers and game titles around, but alsoto help game developers make sure that the games offered on the PLAY are the best they can be, using the Adreno graphics optimization tools.

We’re very pleased that Sony Ericsson chose Snapdragon for the Xperia PLAY device. We’re confident you will be, too. The Xperia Play may not be as tasty as a Reese’s peanut butter cup, but I’d say it’s a lot more fun and lasts a lot longer! For more information on commercially available Snapdragon-based devices and on the Adreno graphics optimization tools, check out our developer site at developer.qualcomm.com.

SoC’s for 2011: [ekin , Jan 23, 2011 >>> ]

(listed in what I believe is the best to the worse)
+ ARM Sparrow: Dual-core Cortex A9 @2.00GHz (on 32nm die), unspecified GPU
+ TI OMAP 4440: Dual-core Cortex A9 @1.5GHz, SGX 540 (90M t/s)
+ Apple A5 (iPad2): Dual-core Cortex A9 @0.9GHz, SGX 543MP2 (130M-150M t/s)
+ Qualcomm MSM8660 (Gen IV Snapdragon): Dual-core Cortex A9 @1.5GHz, Adreno 220 (88M t/s)
+ TI OMAP 4430: Dual-core Cortex A9 @1GHz, SGX 540 (90M t/s)
+ ST-Ericson U8500: Dual-core Cortex A9 @1.2GHz, ARM Mali 400 (50-80M t/s)
+ Samsung Orion: Dual-core Cortex A9 @1GHz, ARM Mali 400 (50-80M t/s)
+ Nvidia Tegra 2: Dual-core Cortex A9 @1GHz, nVidia ULP-GeForce (71M t/s)
+ Qualcomm Scorpion (Gen III Snapdragon): Dual-core Cortex A8 @1.2GHz, Adreno 220 (88M t/s)

Notes:
– The SGX530 is roughly half the speed as the SGX535. The SGX540 is twice as fast as the SGX535.
– The Adreno 205 (41M tri/sec) is supposedly faster than the SGX535 but slower than the SGX540 (thus, is likely to be in the mid).
– The Adreno 220 is twice the speed of the Adreno 205 but it is slightly slower than SGX540 (88M vs 90M tri/sec).
– Samsung claims ARM Mali 400 to be 5 times faster than its previous GPU (S3C6410 – 4M tri/sec), about on par (80M tri/sec) with the Adreno 220, but few leaks benchmarked it to be only slighlty faster than the SGX535 (40M tri/sec).
– The gpu used in the Nvidia Tegra2 has been quite contained (little known). I estimated the Tegra2 has 71M t/sec (Tegra 2 Neocore=27fps/55fps=Galaxy S Neocore, x62% disadvantage of screen resolution, x 90Mt/s of SGX540 = 71M t/s). And recently some inside rumors via fudzilla actually confirmed this exact figure, so therefore the gpu-chip inside the Tegra2 is roughly equivalent to the MALI 400.

All of these details are based on officially announced, rumors from trustworthy sources and logical estimations, so discrepancies can be existent.

Last thoughts:
As you can see there is some diversity in the next-gen chips (soon to-be current-gen), where the top tier (OMAP 4440) is roughly 1.5 times more powerful than the low tier (Tegra 2). However drivers and software will play a lead-role in determining which device could squeeze out the most performance. And this factor may alone favour the iPad2, Playbook or even MeeGo tablets to be better than the Honeycomb tablets which are somewhat bottleneck-ed by the lack of hardware accelaration and post-transcription through the Dalvik VM. I think we’ve hit the point where we could have some really impressive high definition entertainment, and even emulating the Dreamcast at decent/fullspeed.

edit2 [March 13]:  “ Just re-edited the post. Apple’s A5 details are added in, its looks to be one of the best chips for the year. If I had to choose between the OMAP4440 and A5, I probably would be reduced to a head-tail coin flip!”

Well, Apple’s been boasting over x9 the graphical performance over the original iPad. There are 2 articles on anadtech, one in Geekbench and a processor-specific details from imgtech (I dug up from 12months ago). It has been found that its a modified Cortex A9, 512MB RAM and the SGX543MP2. Everything points to the SGX543MP2 being significantly faster than the SGX540, and the given number was 133 Million Polygons per second (theoretical) for SGX543MP4 which is double SGX543MP2 performance. The practical figure is always less. Imgtech said the SGX540 is double the grunt of the SGX535, benchmarks show the SGX543MP2 is (on average) five times the grunt as the iPad (SGX535). So going by imgtech (the designer of sgx chips), the theoretical value that I list above, should be 70M t/sgoing by Apple’s claim it should be 200M t/sgoing by benchmarks it should be roughly 130 M t/s. Imgtech’s value is definently wrong since they claimed its faster than the SGX540 valued at 90M t/s. Apple’s claim also seems biased, they take only the best possible conditions and exaggerate it even more. It seems to be somewhere in between, and wouldn’t you know it, the average of the two “false” claims is equivalent to the benchmarked value

edit3 [April 3]: “Update. The benchmark results of the Snapdragon MSM8660 are in…. and it goes further to support the list. MSM 8660 = Dualcore A9 + Adreno 220 + Qualcomm modification (for better/worse).”

The benchmarks are out for the 4th-gen QSD, which confirms everything prior. It’s competing for top place against the 4440 and A5. I’ve changed the post (only updated chip’s name). If one were to choose between the processor of the A5 and the OMAP4440, they’d be really pressed to choose between more cpu grunt or more gpu grunt.

Qualcomm roadmap reveals quad-core, 2.5GHz ARM CPU [July 6, 2011]

MSM8960 [start shipping in Q4 2011]: Adreno 225 3D/2D 125 M tri./sec (DX9.3) – said to rival the GPU powering the Playstation Vita

MSM8930 [start shipping in Q3 2012]: Adreno 305 3D 80M tri./sec (DX9.3) – take us far beyond the possibilities of the Playstation Vita and more into the realm of the Xbox 360 or the Playstation 3

MSM8974 [start shipping in Q1 2013]: Adreno 320 3D 225M tri/sec (DX9.3)

While looking back one year: [Medion, Aug 19, 2010]

Samsung Galaxy uses PowerVR SGX540 (rated at 1 gigapixel fill-rate, and 28M triangles/sec)
Iphone 3GS/4 both use PowerVR SGX535 (1 gigapixel, 14M tri/sec)
Droid 2/Droid X use PowerVR SGX530 (500 megapixel, 14M tri/sec)
Droid uses underclocked PowerVR SGX530 (250 megapixel, 7M tri/sec)
Snapdragon uses Adreno 200 (133 megapixel, 22M tri/sec)

So when it comes to the GPU, the Galaxy S phones kill anything that uses a current Snapdragon. The fill-rate is what is what’s really holding back the Adreno.

As for the CPU, I’ll generalize here.

Snapdragon – ARMv7 based Scorpion core (NOT an A8 like some state). Advantages over A8 is 5% faster clock for clock, and ability to be used in a multi-core configuration. Basically, it’s more future proof.

TI OMAP – stock Cortex A8, but currently running at 45nm, so better on battery life than Snapdragon (this will change with the new Snapdragons coming out)

Hummingbird – modified Cortex A8, 10-20% faster multi-threaded performance, but also 45nm so with better battery life as well.

So in terms of CPU, it’s Galaxy > Snapdragon/OMAP (depends, do you want 5% more performance, or significantly better battery life?)

So in conclusion, the Galaxy phones have more horsepower than the Incredible. If you plan to root and run custom ROMs, it should be the platform of choice.

Good TD-LTE potential for target commercialisation by China Mobile in 2012

See also: Mobile Internet (Aug’11) which is a total update on Aug 26, 2011 with a lot of additions to the original July 19, 2010 content on the following subjects:
– LTE and LTE Advanced — HSPA Evolved (parallel to LTE and LTE Advanced) — Heterogeneous networks or HetNets — Femtocells and Picocells — Qualcomm innovations in all that — Ericsson’s LTE Advanced demo — Current roadmaps on evolutions of current 3G+ broadband mobile networks

Updates: China Mobile to set up TD-LTE network in Hong Kong [Feb 8, 2012]

The Hong Kong subsidiary of China Mobile, the largest mobile telecom carrier in China, has acquired 15-year licensed use of 30MHz-bandwidth radio frequency band 2,330-2,360MHz from the Office of the Telecommunications Authority, Hong Kong for HK$170 million (US$21.9 million), and the parent company will use the band to provide TD-LTE (Time Division-Long Term Evolution) service in Hong Kong, according to industry sources in Taiwan.

China Mobile is required to reach a minimum coverage of 50% of the Hong Kong population for its mobile services or 200 commercial and/or residential buildings for its fixed services in the initial five years following the licensing, the sources said.

China government not expected to issue TD-LTE operating license for the time being [Jan 16, 2012]

While China Mobile has been actively promoting TD-LTE, the China government is not expected to issue a TD-LTE operating license to China Mobile for the time being, according to industry sources.

China Mobile finished initial TD-LTE trials in seven selected cities in China around the end of 2011 and has proposed a second-round of trials, but the China government has not yet approved the plans, signaling the government’s attitude to slow down promotion of TD-LTE in China, the sources indicated.

This is because 3G mobile communication services are taking off in the China market and therefore the government does not want to issue a TD-LTE operating license out of consideration for China Telecom and China Unicom, the sources said.

Volume production of TD-LTE handsets to not start until end-2012 [July 14, 2011]

Although some telecom carriers plan to kick off commercial TD-LTE services in the second half of 2011, volume production of TD-LTE-enabled handsets will not be realized until the end of 2012, according to industry sources in Taiwan.

Being pushed by China Mobile, more than 10 telecom service providers worldwide have committed to support TD-LTE technology and about 20 other carriers, including those in India and Japan, are now testing TD-LTE networks, noted the sources.

However, those carriers will use devices such as mobile data cards and routers as end devices to support their TD-LTE networks initially without the availability of TD-LTE handsets, the sources added.

Although China-based handset makers may adopt single TD-LTE chips being rolled out by Innofidei and Hisilicon Technologies, most of them may begin commercial production of TD-LTE handsets at year-end 2012, the sources indicated.

International chipset makers including Qualcomm and ST-Ericsson both plan to launch LTE FDD and TD-LTE dual-mode chips, but volume production of those chips will not begin until the first half of 2012, explained the sources.

End of updates

Compulsory preliminary reading (as the information in that is the essential part of this post and generally won’t be repeated her):
China Mobile repositioning for TD-LTE with full content and application aggregation services, 3G [HSPA level] is to create momentum for that [June 18, 2011]. One esssential quote is important, however:

We are targeting commercialization next year, not in five years. In fact, operators in India and Japan plan to go commercial this year, but we are not that aggressive. So you see: 4G is not being pushed by the vendors, like 3G was. 4G is being pushed by the carriers. LTE is the only standard in the industry where, if you have a product, people will buy it right away. It’s  the reverse of how things used to be, and very interesting. LTE is being developed fast, but not fast enough.

[Bill [Xiaoqing] Huang, general manager of China Mobile’s Research Institute, response to the reporter’s question: Isn’t that a long way off in the future? Don’t you need to develop mobile broadband now?]

as well as two whole excerpts:

TD-LTE Industry Briefing – May 2011 by China Mobile [May 27, 2011]

TD-LTE Large Scale Trial in China Update –All 6 Cities Have Launched Base Stations

  • All 6 cities have launched base stations. The number of launched Base Stations has reached 20% of the planned ones.
  • The planning of continuous coverage in hot spot areas has been completed in all 6 cities. The constructions are under way:
    – 78% supporting facilities modification accomplished
    – 69% equipments arrived
    – 35% equipments installed
      • Transmission tests have been completed in several cities
      • EPC and Security tests initiated in several cities in April 2011
      • RANtests are planned to start in the end of May 2011TD

GTI Official Website: http://www.lte-tdd.org

The GTI official website was launched during the 1st GTI Workshop [on 27-28 April 2011 in Guangzhou, China]. The website shares the latest information about TD-LTE related News, Events, Reports and Statistics. GTI operators have the rights to access the Working Space on GTI website for technical presentations and further deliverables of GTI.

China Mobile Almost Finishes Pilot TD-LTE Network Deployment [June 7, 2011]

China Mobile, one of the Big Three telecom operators in the country, has completed deployment of a pilot TD-LTE network in most of the cities selected for a planned test, disclosed people familiar with the matter today.

Most of the system equipment makers have completed the first TD-LTE call in cooperation with the branches of China Mobile, according to one of the people, noting that additional telecom equipment makers are expected to make a presence in the program for an expansion of the test.

The TD-LTE network test, kicked off on March 24 with the releasing of document from the Ministry of Industry and Information Technology (MIIT), has been going on smoothly reflected by a group of telecom equipment makers’ success in TD-LTE call.

Huawei Technologies Co., Ltd., one of the top-ranking telecom equipment makers in the country, helped launch the first TD-LTE wireless connection in Shenzhen on April 6, facilitating the rollout of high-speed download service and high-definition video service based on the TD-LTE data card.

And now the new information about TD-LTE potential for target commercialisation by China Mobile in 2012:

China Mobile ambitious to lead 4G tech [by China Daily, July 11, 2011]

BEIJING – China Mobile, the country’s largest mobile telecom operator, is taking ambitious steps to promote the “fourth-generation,” or 4G mobile technologies, according to the general manager of its research institute.

“You have to be a leader, not a follower…timing is everything,” said Huang Xiaoqing [Bill], general manager of China Mobile’s Research Institute, in an interview with Xinhua.

With more than 600 million subscribers, the mobile giant, which is both listed in Hong Kong and New York, is pushing for China’s home-grown 4G standard, known as TD-LTE, or “Time Division-Long Term Evolution,” to be a globally accepted standard.

The technology is expected to provide faster broadband wireless services to meet the explosive future demand in data communication that the current 3G network is unable to deliver, Huang said.

Demand for mobile communications, especially for mobile internet, is rapidly growing, totally beyond our expectation and forecast,” he said.

The TD-LTE network is believed to be “ten times lower in price and ten times better in performance” than the current 3G service, he added.

The upgraded version of TD-LTE, or TD-LTE-Advanced, is now among the three international 4G standards accepted by the UN’s International Telecommunication Union(ITU). The other two are LTE FDD and WiMAX, which are dominated by Europe and the United States, respectively.

Currently the company has arranged large-scale TD-LTE trials in six Chinese cities and set up a demonstration network in Beijing. It has also developed a TD-LTE mobile network in Taiwan with the local Far EasTone Telecommunications for testing purposes.

According to Huang, telecommunication operators worldwide are seeking a single and unified global standard and tend to agree to the LTE standard.

China Mobile joined with seven other operators to form Global TD-LTE Initiative(GTI) at the Mobile World Congress in Barcelona in February, he said.

The GTI now has 22 members, including telecommunication giants like the UK’s Vodafone, Japan’s Softbank, and Axiata from eastern Europe. Currently, trial networks of TD-LTE have been established in 29 countries.

Goldman Sachsis also optimistic about TD-LTE’s future. In a report released late June, the investment bank said TD-LTE is becoming the global solution for unpaired spectrum due to its 3G inter-operability, large data capacity, and leverage of the LTE FDD system.

The report expects China Mobile, Bharti (India), and Softbank to launch TD-LTE services in late 2012 or 2013, which would cover nearly 2.7 billion people, or 39 percent of the world’s total population, in the three countries.

China is leading the global promotion of the TD-LTE standard, therefore, tests on the network are fully open, said Cao Shumin, vice director of the Telecommunication Research Institution under with the Chinese Ministry of Industry and Information Technology(MIIT).

The test site at the MIIT institutionhas gathered not only domestic cell phone manufacturers but also multinational tycoons like Motorola, Ericsson, and Nokia Siemens Networks.

The LTE FDD network, which is promoted by European operators, is seen as a strong competitor to TD-LTE. But as the two technologies are based on the same LTE system, they are able to share R&D results and subscribers at a global level, Cao said.

The company is also pinning hope on the 4G technology to gain back its high-end subscribers lost to China Unicom and China Telecomin the 3G business.

China Mobile, whose 3G network technology isn’t supported by the iPhone, has announced it will work with Apple on a TD-LTE-type iPhone.

Currently, China Mobile’s iPhone users can only run their device on the 2G mobile network.

But the Chinese government has not given a clear timetable for the commercial launch of TD-LTE.

Miao Wei, minister of the MIIT, said in April that China plans to commercially promote the TD-LTE technology nationwide within three to five years.

The government has only issued the 3G licenses in 2009, with China Mobile getting the self-developed TD-SCDMA standard.

The regulator is afraid that China Mobile is becoming stronger, gaining more market share and monopolizing the market,” Huang said.

China Mobile had 611 million subscribers by the end of May, of which 32 million were 3G users. China Unicom had 22.1 million 3G users in May, while China Telecom came in third with 19.7 million.

Cell Shackles Crumble [by WSJ via C114, July 12, 2011]

China Mobile Ltd. has missed out on Apple Inc.’s iPhone and other hot smartphones because China’s government forced the Chinese company to build its 3Gnetwork with a homegrown technology not used elsewhere.

Now, the world’s biggest carrier, with more than 611 million subscriber accounts, is looking to improve its situation as it prepares to roll out a fourth-generation network.

China’s government, which owns all three of the nation’s telecommunications carriers, saddled China Mobile with TD-SCDMA, a third-generation wireless technology developed in China, because Beijing thought the company’s size would help promote the technology. The government let the other two, smaller, carriers employ the foreign-developed protocols that are used in other markets.

Now, the industry is moving toward a fourth generation of mobile technologies, part of a migration that allows faster, pricier data services. China Mobile has backed a standard called TD-LTE, for time-division long-term evolution. Analysts said the company has a shot at reversing the fate it suffered with 3G, largely because the company has worked to build international support for the technology.

With 4G, most carriers so far have favored a different version than China Mobile’s technology, called FDD-LTE. In the U.S., VerizonWireless introduced 4G services using the standard last year, and AT&T Inc. will do so in some cities this summer.

But there are also major carriers interested in TD-LTE, which China Mobile is using. Bharti Airtel Ltd., India’s largest telecom company by users, has said it will adopt the protocol. U.S. wireless-service provider Clearwire Corp. last year said it would run tests with both versions of LTE. And in Japan, a unit of Softbank Corp. plans to introduce a service this yearthat it says will be compatible with TD-LTE.

China Mobile has encouraged suppliers and other mobile carriers to support the technology. Analysts said Chinese telecom-equipment maker Huawei Technologies Co. also has been a key advocate.

Analysts said development of supporting equipment for TD-LTE has lagged behind that for FDD-LTE by more than six months. But TD-LTE has advantages: It makes more efficient usethan does its cousin of wireless spectrum, a scarce resource.

In part because TD-LTE has international support, it could mean access for China Mobile to a wider range of handsets and less-expensive components, analysts said. China Mobile Chairman Wang Jianzhou in May said Apple planned to use TD-LTE on the iPhone.

China Mobile also appears to be racing ahead of its Chinese rivals toward 4G. Mr. Wang in March said the company aims this year to start commercial trials of TD-LTE using wireless modems. China Unicom [the W-CDMA licensee] Chairman Chang Xiaobing in March simply said the company was experimenting with 4G technology. And a China Telecom [the CDMA2000 licensee] spokesman last week said the carrier doesn’t have a timetable for building a next-generation network.

China Mobile and TD-LTE still face hurdles. According to the state-run China Daily newspaper in March, China’s information-technology minister said China won’t launch commercial 4G mobile services nationwide until 2014, leaving unclear how quickly China Mobile will be able to move ahead.

But TD-LTE still has more potential than China Mobile’s 3G standard did, said Duncan Clark, chairman of consulting firm BDA China Ltd. “People certainly can’t just say it has no future, which is better than TD-SCDMA,” he said.

China Mobile Shows Power Still Lies With the Party [Financial Times via China Digital Times, July 5, 2011]

At first glance it looks easy to tell who is in charge at China Mobile, the world’s largest mobile phone operator by subscribers – industry veteran Wang Jianzhou is chairman of both the Hong Kong-listed company and its majority stakeholding parent.

In reality, however, things are not so simple. In a terse notice last week the listed company revealed that Mr Wang had been replaced as secretary of the Communist party committee at the state-owned parent company by Xi Guohua, former vice-minister for information technology….

Such is the strange world of Chinese big business, where an enthusiastic embrace of the trappings of global capitalism and corporate governance collide with the hard facts of political power in a one-party state. While China’s communists long ago cast aside any pretence to ideological purity, they remain determined to keep tight control over the state companies that command the economic high ground ….

Some observers of Mr Xi’s appointment last week wonder if it is part of a wider clear-out linked to the waning influence of former Chinese president Jiang Zemin and the upcoming retirement of current leader Hu Jintao. Others see it as punishment for Mr Wang for failing to prevent China Mobile becoming ensnared in a series of corruption scandals since 2009. More benignly, the move could be seen as simply a preparation for the 63-year-old chairman’s retirement.

Wang Jianzhou: China Mobile’s Growth is Sustainable [Caijing, July 5, 2010]

With fierce market competition and an unknown model for the mobile Internet, what path should China Mobile take to continue its growth?

By staff reporters Ming Shuliang, Zhang Min, Wang Qihua and Li Weinuo

The number of mobile phone users in China continues to rise. After the last round of restructuring, the level of competition in the market intensified as two operators became three. TD-SCDMA technology is not as mature as WCDMA and CDMA2000. And the popularity of the mobile Internet has changed the original business model of the communications industry. In an interview with Caijing, China Mobile Communications Corp. Chairman Wang Jianzhou discussed the four major challenges ahead for China Mobile.

[the 1st one is the further growth in general and turning the current TD-SCDMA investment profitable in particular] Wang believes there are still growth points in China’s mobile communications market. The penetration rate in China’s rural areas is still low, and people are steadily migrating to cities, which will bring more new users and continued growth. At present, China Mobile’s revenue share of data traffic only accounts for 7.5 percent of annual income. Moreover, the demand for machine to machine communication, also known as the Internet of Things, also has some room for growth.

Wang is optimistic about China Mobile’s future growth prospects, stating that TD-SCDMA terminals have steadily improved, WiFi and LTE networks are now being built, and China Mobile’s scale dividends have yet to be tapped.

China Mobile plans to increase its TD-SCDMA subscribers to 50 million by the end of 2011. And by improving terminals and increasing network usage of its TD network, the company will pay more attention to the development of mid-to-high-end mobile phones.

[the 2nd one] China hasn’t yet issued a timetable for 4G network licensing. Wang believes that tablet PCs may become an important application for the LTE era. [Bill Huang, GM of the China Mobile Research Institute has made a possible clarification for that here: “I see them as just bigger smartphones. In fact, Microsoft and others have tried for many years to introduce tablets and failed. But when Apple introduced the iPad, which is just a big iPhone, everybody loved it. So, this proves that a successful tablet is a big smartphone. The look and feel is very similar to that of a phone.]

Driven by China Mobile, more international carriers, especially operators from the WiMAX world, are joining the TD-LTE camp. Japan-based Softbank Mobile Corp. has pledged to put its TD-LTE network into commercial use by the end of 2011.

[the 3d one] Negotiations between China Mobile and Apple Inc. have yet to conclude, and terminal subsidies are one of the key points for both sides. China Mobile only provides 3G terminal subsidies, but Apple doesn’t support China Mobile’s TD-SCDMA standard. Apple has promised to manufacture TDD standard compatible mobile phones after LTE chips come out.

[the 4th one is international expansion] China Mobile’s Pakistan subsidiaryhas widened its subscriber base to 10 million, and the company is expected to turn a profit in 2012. China Mobile’s future international acquisitions will focus on key emerging markets, TD-LTE operators and Internet companies. The company is also now considering whether it can participate in future international mergers and acquisitions as a minority shareholder.

Full article in Chinese: http://magazine.caijing.com.cn/2011-07-03/110763826.html [王建宙:增长仍将持续]

China Mobile to set up 1,000 TD-LTE base stations in five cities [March 28, 2011]

China Mobile (CHL.NYSE; 00941.HK) decides to initiate large-scale construction of TD-LTE trial network in five cities first. Five telecom equipment providers will share the construction, with each establishing 200 base stations in assigned citi (NYSE:C) es, according to www.sina.com.cn.

The TD-LTE trial network was planned to cover seven cities, including Beijing, Shanghai, Nanjing, Hangzhou, Guangzhou, Shenzhen and Xiamen, but there are only five telecom equipment manufacturers passed the external field tests so far, and each manufacturer is entrusted with network construction in one city.

Alcatel Shanghai Bell Co., Ltd. acquired the mobile TD-LTE trial network deployment program in Shanghai; Huawei Technologies Co., Ltd . took up Shenzhen; Nokia-Siemens (NYSE:NOK), Hangzhou; ZTE Corp. (OOTC:ZTCOY), Guangzhou; and Datang Telecom Technology Co., Ltd., Nanjing.

An industrial insider revealed that as long as other telecom appliance providers pass the tests, China Mobile will start the construction in Beijing and Xiamen [July 1: picked by Nokia Siemens Networks, see later] at any time.

China Mobile schedules to complete the trial network construction in the first batch of cities by September.

China Mobile TD-LTE trial network details [July 1, 2011]

Experts of China Mobile revealed the details of TD-LTE trial network that the first batch of admited equipment vendors, which including Huawei, ZTE, Datang, Nokia Siemens, Shanghai Bell, Motorola and Ericsson, have completed the testing of core network, and went into the next phase of wireless network, it is expected by the end of December, 2011, all the vendors will complete the testing.

Now, the first batch of admited equipment vendors have completed the hotspot contiguous coverage, the first base station and transmission testing in several cities, while the core network, security testing and wireless networks has also being started.

The TD-LTE network trial has three major parts: wireless networks, terminals, core network (basic function: verification, carrying and transmission).

Demo business includes home entertainment, working and living, office meetings and professional use such as high-definition wireless video on demand, 3G video-on-demand and high-speed wireless cities.

China Mobile in TD-LTE testing R&D pact [July 4, 2011]

China Mobile has entered a joint TD-LTE R&D agreement, and revealed it tapped NSN [Nokia Siemens Networks] to deploy part of its trial networkusing the homegrown 4G standard.

The operator’s R&D division, China Mobile Research Institute, has signed a MoU with Rohde & Schwarz to collaborate on the development of TD-LTE testing tools and systems, AsiaNet reported.

A stated goal of the co-operation is to speed up global deployment of TD-LTE.

NSN meanwhile announced it has been operating TD-LTE test networks in two of the six cities where China Mobile has been trialling the technology since May.

The core network has been tested, and NSN has now moved on to radio access. The vendor is also working with the ICT ministry on TD-LTE device testing, and said it will introduce devices into the trial network once the preliminary tests are complete.

China Mobile hopes to commercially launch TD-LTE in 2012, but the communications ministry in March stated it doesn’t expect significant LTE rollouts until 2014.

Nokia Siemens Networks trials TD-LTE in Hangzhou and Xiamen [July 1, 2011]

First global vendor to be awarded two cities in six-city China Mobile 4G trial

Nokia Siemens Networks has successfully been running live TD-LTE (4G) trial networks in Hangzhou and Xiamen for China Mobile, the world’s largest operator. The trial networks, operational since May, demonstrate the promise of TD-LTE to transform the mobile broadband experience in China. Trial users have been able to enjoy peak download and upload speeds of up to 100 Mbps along with uninterrupted access to applications such as video streaming and online HD video conferencing.

Nokia Siemens Networks has already finished testing the core network and is now testing radio access. It is working with China’s Ministry of Information and Industry Technology (MIIT) on TD-LTE device testing, and will use devices in the trial, when testing is completed.

“In Zheijang region, we reached a major milestone earlier this year with 50 million subscribers and can also see the data boom in the network,” said Zhong Tianhua, General Manager of China Mobile Group Zhejiang Co. Ltd. “As our long-standing partner, Nokia Siemens Networks fully understands our aim to improve the capabilities of our network to improve subscriber experience.”

Nokia Siemens Networks deployed its single RAN advanced TD-LTE equipmentin 2.3GHz and 2.6GHz spectrum. The company’s network management system, NetAct is providing configuration, monitoring and operations support system capabilities during the trial. Nokia Siemens Networks is also providing network planning and optimization services.

“Nokia Siemens Networks has been committed to developing the TD-LTE ecosystem since its inception. The Motorola Solutions’ acquisition clearly strengthens our market proposition and enables us to deliver greater value to operators, looking to adopt TD-LTE,” said Markus Borchert, head of customer operations for Greater China at Nokia Siemens Networks. “China Mobile’s trust in our TD-LTE capabilities for this large-scale trial affirms our technology leadership and readiness for large-scale commercial TD-LTE rollouts.”

ZTE launches new salvo against Huawei [June 8, 2011]

Chinese telecommunications equipment maker ZTE Corp has demanded rival Huawei Technologies Co stops making and using equipment related to fourth-generation time division long term evolution (TD-LTE) technology, expanding the legal battle between the two Chinese telecom giants.

In a lawsuit filed at the Shenzhen Intermediate People’s Court, ZTE alleged that Huawei infringed on three TD-LTE patents. The company also demanded Huawei stops participating in large-scale TD-LTE trials in seven Chinese cities that started in January.

The move came after Huawei filed four lawsuits against ZTE in Germany, France and Hungaryat the end of April, accusing it of patent and trademark infringements.

Representatives of ZTE’s communication department said on Tuesday that the Shenzhen court has accepted the case and the company is awaiting the next phase of the lawsuit.

Shi Xiaoyan, a Huawei press officer, said Huawei has received a bill of indictment from the Shenzhen court. She said Huawei welcomes ZTE’s counteraction.

“We believe the court will give us a fair trial. Huawei is a leading company in LTE technology, and we own 15 percent of the basic patents in LTE technology worldwide,” Shi told China Daily.

TD-LTE technology is a Chinese telecommunication standard. China Mobile Ltd, the world’s biggest phone carrier by users, is leading its development and striving to make it a global standard.

In December, China Mobile got approval from the Ministry of Industry and Information Technology to begin large-scale tests of TD-LTE technology in seven cities. Huawei is working with Telefon AB LM Ericsson to provide TD-LTE equipment in Shenzhen, while ZTE is supplying the equipment for the trial network in Guangzhou. Alcatel-Lucent SA is providing equipment for Shanghai and Nokia Siemens Networks for Hangzhou.

The lawsuit is unlikely to hamper China’s TD-LTE trials,” said Yang Hua, secretary-general of the TD Industry Association in China. He pointed out that the lawsuit could be lengthy and Huawei will not suspend the trial network constructionunless the Shenzhen court issues an injunction.

Yang also said he expects that all of the lawsuits are merely “paving the way for a comprehensive settlement”, because ZTE and Huawei both own a large portion of LTE patents and cannot afford to work without each other.

Ji Chendong, an analyst with the research firm Frost & Sullivan, said the competition between Huawei and ZTE has become increasingly intense, especially in the overseas market. “The market share in Asian and African countries is relatively stable, and Europe and the US are the two telecom giants’ major battlefields,” Ji said. That explained why Huawei launched the first salvo in its war on ZTE in the European market.

ZTE’s revenue rose by 50 percent year-on-year in the European and US markets in 2010, the biggest overseas contributors to ZTE’s annual growth. The company expects its revenue to grow by more than 20 percent this year, beating Huawei’s forecast of less than 8 percent.

ZTE demonstrates TD-LTE handover [July 12, 2011]

TD-LTE devices are close to hitting the market, according to ZTE, which has completed what it says was the world’s first TD-LTE to 2G/3G handover test.

The Chinese vendor saidit had demonstrated interoperability between TD-LTE terminals and GSM, UMTS and CDMA EV-DO networks.

Some operators have been reluctant to deploy the 4G technology due to concerns about TD-LTE multi-mode terminals, but ZTE claims its tests demonstrate the maturity of the standard’s ecosystem.

The China Mobile-backed TD-LTE standard is gaining traction worldwide. As of April, ZTE alone had deployed TD-LTE trial and commercial networks for 25 operators in 15 countries throughout Asia and Europe.

Indian incumbent Bharti Airtel will adopt the protocol and a Softbank unit and US wireless operator Clearwire have revealed that they will test the technology, WSJ said.

China Mobile has itself built a trial network in six cities, and has teamed up with FarEasTone to trial the standard in Taiwan.

ZTE on Friday revealed [July 8] it had secured a $900 million loan with 10 international banks to help it further expand internationally.

ZTE, first to Start the TD-LTE Large-Scale Test in Guangzhou

On March 24, 2011, China’s Ministry of Industry and Information Technology (MIIT) officially announced the kickoff of TD-LTE scale test. ZTE as one of the first vendors to enter the TD-LTE field will be responsible for building the TD-LTE network in Guangzhou, indicating the start of TD-LTE scale test in China.

This project which is organized by MIIT and China Mobile will cover six cities including Shanghai, Hangzhou, Nanjing, Guangzhou, Shenzhen and Xiamen. It will also include a demon network to be deployed in Beijing. After all the deployments are completed, China Mobile will be able to provide high-speed mobile broadband services such as HD video, 3D games, FTP transmission and high-speed Internet access for the customers in these cities. In the previous 2×2 IOT – MIIT’s entrance test for TD-LTE scale test, ZTE was the first to complete the IOT with Innofidei and Hisilicon and became one of the first vendors to build TD-LTE trial due to its innovations and commercialization.

ZTE has led the industry in TDD technology. It has kept the leading position in the TD-LTE field in terms of technology and system commercialization. In January 2011, the well-known consulting institution Frost & Sullivan released the TDD market research report, in which ZTE was ranked No.1 in terms of competitiveness.

ZTE has been actively promoting the commercialization of TD-LTE. By April 2011, ZTE had deployed TD-LTE trials and commercial networks for 22 world-leading operators in 13 countries covering Europe, India, Commonwealth of Independent States (CIS), Asia-Pacific, Southeast Asia, and so on. ZTE is building the world’s largest LTE TDD/FDD commercial network in Sweden and Denmark, which is also the first TD-LTE network in North Europe. This network will adopt ZTE’s SDR base stations, unified core network and network management platform. Besides, ZTE also actively collaborates with a large number of chipset vendors such as Qualcomm, Sequans and Altair to carry out IOT so as to jointly promote the ecosystem development.

ZTE, the Only Vendor to Provide TD-LTE Service for GTI

The Global TD-LTE Initiative 1st Workshop made its debut in Guangzhou on April 27 to 29, 2011. ZTE and CMCC presented diversified interactive service experience inside and outside the conference hall based on the TD-LTE trial in Guangzhou. The interactive service experience will include mobile video conference, HD 3D streaming and multi-mode high-speed FTP download, allowing the visitors to feel 4G in advance.

During GTI conference, the participants enjoyed the TD-LTE high-speed data service via MF820T data card which is solely provided by ZTE. The type of TD-LTE data card earned favorable comments what is the stable signal, excellent temperature-control.

GTI was officially launched by China Mobile, Bharti Airtel, Softbank Mobile, Vodafone, E-Plus, Aero2 and Clearwire at Mobile World Congress 2011. This event will help expand the international influence of TD-LTE, lay sound foundation for the global expansion of TD-LTE in future, and facilitate the implementation of global roaming and subscriber growth for TD-LTE. Besides the seven member operators, this event also attracts many operators and equipment vendors who have interest in TD-LTE development.

Guangzhou is one of the six cities in which China Mobile will carry out TD-LTE scale test. After China’s Ministry of Industry and Information Technology (MIIT) officially announced the kick-off of TD-LTE scale test on March 24, ZTE and China Mobile’s Guangzhou Branch jointly launched the first high-speed data service in the early April, which laid foundation for the development of diversified TD-LTE services.

ZTE has been actively promoting the commercialization of TD-LTE. By April 2011, ZTE had deployed TD-LTE trials and commercial networks for 22 world-leading operators in 14 countries covering Europe, India, Commonwealth of Independent States (CIS), Asia-Pacific, Southeast Asia, and so on. ZTE built the world’s largest LTE TDD/FDD commercial network in Sweden and Denmark, which is also the first TD-LTE network in North Europe. This network will adopt ZTE’s SDR base stations, unified core network and network management platform. Besides, ZTE also actively collaborates with a large number of chipset vendors such as Qualcomm, Sequans and Altair to carry out IOT so as to jointly promote the ecosystem development.

Ericsson to build TD-LTE trial network in China [April 7, 2011]

  • Will support China Mobile in its first large-scale TD-LTE trial network deployment in China
  • Network to be located in Shenzhen – a highly advanced telecoms market
  • Official interoperability tests in progress with ST-Ericsson and Qualcomm Incorporated to secure global ecosystem

China Mobile has selected Ericsson to participate in the world’s largest TD-LTE trial network deployment to date. With the approval of the Chinese Ministry of Industry and Information Technology (MIIT), Ericsson will build a TD-LTE trial network in the city of Shenzhen, one of the most advanced telecommunications markets in China.

The approval by MIIT follows the successful completion of interoperability tests of Ericsson’s TD-LTE network equipment with multiple chipset manufacturers. As part of its efforts to further develop the global ecosystem, Ericsson is proactively conducting interoperability tests with leading international players such as ST-Ericsson and Qualcomm.

Mats H Olsson, President of Ericsson China & North East Asia, says: “China Mobile has always been a formidable force in driving the evolution of telecommunications technologies. As a longtime strategic partner to China Mobile, Ericsson will fully support our customer in its tremendous endeavor to make TD-LTE a reality in the foreseeable future. Tens of millions of users, not only in China but also around the world, will benefit from the new and better services enabled by the superior TD-LTE technology, and we are thrilled to be part of this initiative.”

Ericsson will provide the industry-leading end-to-end TD-LTE solution, which includes its latest multi-standard base station, RBS 6000 and its commercially proven Evolved Packet Core (EPC) network; operations support systems software and professional services. As early as July 2010, Ericsson demonstrated extremely high-speed multimedia applications enabled by its TD-LTE solution in Shanghai, China. [First complete TD-LTE solution showcased [July 12, 2010]] And in February this year, Ericsson achieved another milestone by making the world’s first TD-LTE voice call over its LTE/EPC network in Barcelona, Spain. [Ericsson showcases voice over TD-LTE for China Mobile [Feb 14, 2011]]

In August of this year, Shenzhen will host the 26th Universiade, or World University Games. According to the deployment schedule, the network will be ready in time for athletes and visitors, together with the city’s population of more than 10 million, to enjoy the TD-LTE experience made possible by Ericsson.

Alcatel-Lucent and China Mobile speed the delivery of mobile broadband in China [May 11, 2011]

Alcatel-Lucent (Euronext Paris and NYSE: ALU) and China Mobile have announced a major step toward the delivery of high-speed mobile broadband to subscribers in China by successfully completing the first call over a trial TD-LTE network deployed in the city of Shanghai.

Alcatel-Lucent’s end-to-end 4G LTE solution in Shanghai is a vital element of the large-scale TD-LTE trial formed by the China Ministry of Industry and Information Technology (MIIT) and China Mobile, covering six major cities in China, to commercially showcase the advantages of TD-LTE technology in delivering high-speed applications and services to millions of customers.

As a key partner of China Mobile, the largest mobile operator in the world, Alcatel-Lucent is utilizing its expertise in TD-LTE to deliver a highly-efficient and cost-effective network to the large population of data-hungry subscribers in the central business and education/technology districts of Shanghai.  The network includes the high-tech park of Zhangjiang and financial district of Lujiazui, which China Mobile and the Shanghai Government want to make a leading demonstration zone of TD-LTE technology. The successful completion of this first call is a major milestone in realizing this goal.

“We are excited to be able to collaborate with China Mobile and demonstrate our leadership in TD-LTE on this important trial network. The first call takes us a step closer in delivering a high-quality network that will provide faster wireless services and applications to the people of Shanghai,” said Rajeev Singh-Molares, president of Alcatel-Lucent ‘s activities for Asia-Pacific.

Alcatel-Lucent and China Mobile further enhanced their relationship in April of this year by announcing a joint research program to pioneer developments in next generation mobile communications, including further co-development of Alcatel-Lucent’s lightRadio solution.

Alcatel-Lucent has established a strong leadership position in LTE, being selected so far by fourteen customers for commercial deployments — including two of the world’s largest service providers — and being involved in over 60 LTE trials worldwide.

Alcatel-Lucent and China Mobile to Co-Develop Future of Mobile Networks [April 20, 2011]

Alcatel-Lucent (Euronext Paris and NYSE: ALU) and China Mobile today announced a wide-ranging joint memorandum of understanding to pursue pioneering developments in next generation mobile communications including further co-development around Alcatel-Lucent’s powerful lightRadio™ technology.  The partnership agreement was signed by Romano Valussi, President of Alcatel-Lucent in China, and Bill Huang, president of China Mobile Research Institute in a signing ceremony in Beijing today.

China Mobile is the biggest mobile operator by subscribers in the world.  Alcatel-Lucent is a leader in radio access, IP, and optical technologies – all critical elements in mobile networking – thanks to its flagship Bell Labs research arm which invented and continues to invent many of the fundamental networking technologies of today and tomorrow including the much heralded lightRadio cube.

This research collaboration will further extend the close relationship between the two companies, establishing the framework to jointly explore:

  • the evolution of mobile network architectures leveraging and integrating China Mobile’s Cloud-RAN and Alcatel-Lucent’s lightRadio and advanced antennas technology;
  • explore the evolution of core network structure on the basis of network virtualization; and
  • develop technologies and approaches for alternative energy use to achieve green ICT

The MOU is mutually initiated and endorsed by Wang Jianzhou, Chairman of China Mobile and Ben Verwaayen, Alcatel-Lucent CEO.

Ben Verwaayen, CEO of Alcatel-Lucent, said: “This vital collaborative agreement will bring together two industry leaders, using joint research, to bring new breakthroughs to market at what we call ‘the speed of ideas’.”

Wang Jianzhou, Chairman of China Mobile said “Co-development with Alcatel-Lucent Bell Labs will benefit evolving our network technology to support the next generation of mobile-based applications, experiences, economies, and social networks.”

Alcatel-Lucent to help China Mobile deploy world’s largest 4G TD-LTE end-to-end trial network [March 24, 2011]

Alcatel-Lucent (Euronext Paris and NYSE: ALU) today announced it has been selected by China Mobile to participate to the world’s largest 4G TD-LTE trial network deployment in China. This qualification follows successful completion of various interoperability tests which started from January 2010 as required by the Chinese Ministry of Industry and Information (MIIT) and China Mobile. Alcatel-Lucent Shanghai Bell, Alcatel-Lucent’s flagship company in China is one of the first suppliers to have successfully achieved this key milestone and will be deploying its end-to-end LTE solution for China Mobile’s large-scale 4G TD-LTE trial in the city of Shanghai.

Covering 6 major Chinese cities, namely Shanghai, Hangzhou, Nanjing, Guangzhou, Shenzhen and Xiamen, and recently extended to Beijing, this large scale TD-LTE trial will help China Mobile to provide a wide range of high speed mobile broadband services to its subscribers, such as high definition video, 3D gaming, FTP transmission and high speed Internet. It will also enable new industries with LTE connectivity like automotive industry and multi-industry ecosystem development thanks to initiatives pioneered by Alcatel-Lucent through the ng Connect Program launched two years ago.

Rajeev Singh-Molares, president of Alcatel-Lucent’s activities in Asia-Pacific said: “This is a major accomplishment for Alcatel-Lucent and clearly reinforces our leading position in China and our global leadership in LTE. We are committed to provide China Mobile with the most advanced LTE solution for the world’s largest TD-LTE trial and to demonstrate the maturity and cost-effectiveness of our solution for TD-LTE which is emerging as the 4G standard for TDD spectrum globally. The successful interoperability tests with terminal suppliers further demonstrate our commitment to create an open TD-LTE ecosystem that will participate in the broader global LTE value chain.”

The tests were conducted in both 2.3GHz and 2.6GHz frequency bands for indoor and outdoor deployments and relied on Alcatel-Lucent’s industry-leading LTE expertise to provide an end-to-end integrated solution including LTE base stations (eNodeBs), the Evolved Packet Core (EPC). Alcatel-Lucent’s solution successfully passed interoperability tests with two major terminal suppliers.

Alcatel-Lucent is a key partner of China Mobile on TD-LTE and next generation wireless networks initiatives and evolution programs. During the 2010 Shanghai World Expo Alcatel-Lucent supported China Mobile in the first large-scale TD-LTE trial network deployment delivering advanced mobile services including ultra high speed Internet access and High Definition TV (HDTV). Most recently, at Mobile World Congress, Alcatel-Lucent and China Mobile demonstrated with Audi, a variety of in-vehicle high-value applications that worked seamlessly on a converged Time Division Duplex (TDD) and Frequency Division Duplex (FDD) network ensuring seamless global coverageand the ability to benefit from a common LTE ecosystem across both modes. Alcatel-Lucent and China Mobile are partnering to develop next-generation radio access network based on Alcatel-Lucent’s lightRadio, a groundbreaking innovationto prepare wireless networks to handle the explosive growth in demand for wireless broadband services while making the networks more eco friendly.

Having been selected so far by twelve customers for commercial deployments — including two of the world’s largest service providers— and being involved in over 60 trials worldwide –- including thirteen LTE TDD trials in seven countries — Alcatel-Lucent has established a strong leadership position in LTE.

More information about Alcatel-Lucent and LTE: http://www.alcatel-lucent.com/lte

About Alcatel-Lucent(Euronext Paris and NYSE: ALU)

The long-trusted partner of service providers, enterprises, strategic industries and governments around the world, Alcatel-Lucent is a leader in mobile, fixed, IP and Optics technologies, and a pioneer in applications and services. Alcatel-Lucent includes Bell Labs, one of the world’s foremost centres of research and innovation in communications technology.

With operations in more than 130 countriesand one of the most experienced global services organizations in the industry, Alcatel-Lucent is a local partner with global reach.

The Company achieved revenues of Euro 16 billion in 2010 and is incorporated in Franceand headquartered in Paris.

For more information, visit Alcatel-Lucent on: http://www.alcatel-lucent.com, read the latest posts on the Alcatel-Lucent blog http://www.alcatel-lucent.com/blog and follow the Company on Twitter: external linkhttp://twitter.com/Alcatel_Lucent.

Additional information on mobile infrastructure vendors participating in the TD-LTE trials by China Mobile (sans Datang for the time being):

  • Huawei
  • ZTE
  • Ericcson (+ acquisition of divested Nortel assets strategic for Ericsson)
  • Nokia Siemens Networks (NSN)
  • Alcatel-Lucent (with special emphasis on lightRadio and related QorIQ Qonverge SoCs from Freescale quite essential for that)

I. Huawei

Huawei Showcases Cutting-Edge LTE TDD Technology at the16th Asian Games [Nov 24, 2010]

Huawei, a leader in providing next-generation telecommunications network solutions for operators around the world, today announced that it has exclusively deployed a LTE TDD trial network for China Mobile at the 16th Asian Games in Guangzhou. Visitors to the Asian Games are able to enjoy a range of cutting-edge services, such as mobile HD (high definition) video conferencing and surveillance and HD video on demand. Using a portable digital video camera with the LTE TDD module-embedded, members of the media can send real-time high-resolution photos and live broadcast video across the world.

“As the use of data services is at an all-time high around the world, the development and rapidly growing uptake of LTE is in direct response to consumer requirements for faster mobile communication services,” said Ying Weimin, President of LTE Network, Huawei. “The success of this deployment, along with the success of our LTE TDD network at the Shanghai Expo, reaffirms the high performance and reliability of LTE TDD solutions and demonstrates Huawei’s commitment to enabling operators around the world to deliver superior mobile media experiences to their customers.”

Huawei’s demo network delivers the following solutions and services:

  • Low carbon and cost efficient LTE TDD base station, based on Huawei’s industry-leading SingleRAN solution
  • Evolved Packet Core (EPC)
  • HD video conferencing, mobile HD video surveillance, catch-and-transfer, live broadcast, and HD video on demand (VOD)
  • LTE TDD devices featuring high-end chipsets
  • E2E service deployment, management, and service guarantee

As a leading provider of E2E mobile broadband solutions, Huawei constructed the world’s first LTE FDD network for TeliaSonera in Norway and was awarded the world’s first LTE TDD commercial contract from Aero2 in Poland. To date, Huawei has won 18 commercial LTE contracts and has partnered with leading operators in Europe, North America, Asia Pacific and the Middle East to deploy over 70 LTE/EPC trial networks deployments around the world.

Huawei Awarded the World’s First Commercial Frame Contract Covering LTE TDD Technology in Poland [Nov 18, 2011]

Huawei, a leader in providing next-generation telecommunications network solutions for operators around the world, today announced that it has been awarded a frame contract to deploy the world’s first commercial LTE TDD network for Aero2, Poland’s leading mobile broadband operator. With Huawei’s end-to-end LTE TDD/EPC (Long Term Evolution/Evolved Packet Core) solution, the network will allow ultra-speed data rates and deliver rich experiences and high-quality mobile broadband services, such as video call and mobile Internet access, to Aero2’s subscribers. The network will become operational in early 2011.

“Aero2 is committed to providing high-quality mobile broadband services for our customers and introducing cutting-edge telecom technologies in Poland,” said Adam Kuriański, the President of Aero2. “We are confident that with Huawei’s advantages in LTE technology, we will be able to offer users a rich communications experience with the deployment of the LTE TDD network.”

“This milestone demonstrates that LTE TDD technology is already mature, stable and reliable for large-scale deployment,” said Ying Weimin, President of LTE Network, Huawei. “Based on Huawei’s LTE unified platform supporting both LTE FDD and LTE TDD, we are confident that the network will contribute to Areo2’s success in the mobile broadband era.”

Due to their long-term partnership, Aero2 and Huawei have achieved a series of breakthroughs in LTE, benefiting from Huawei’s LTE FDD and TDD unified platform. In September, 2010, the world’s first commercial LTE FDD network, on 1800MHz band, was launched in Poland. Recent LTE TDD lab testing with Aero2 in Poland showed that download throughput rate reached up to 100Mb/s.

As a leading provider of end-to-end mobile broadband solutions, Huawei has constructed the world’s first LTE FDD network for TeliaSonera in Norway and supported China Mobile to deploy the world’s first pre-commercial LTE TDD network at the 2010 Shanghai World Expo. To date, Huawei has won 18 commercial LTE contracts and has partnered with leading operators in Europe, North America, Asia Pacific and the Middle East to deploy over 70 LTE/EPC trial networks around the world.

About Aero2

Aero2 is a new comprehensive telecommunications provider in Poland. The company builds mobile networks and broadband Internet access. The coverage of Aero2 has already reached more than 40% of the Polish population. Aero2 has a radio frequency of 900 MHz and 2.5 GHz.

Huawei Launches Industry’s First WiMAX and LTE TDD SingleRAN Solution [Nov 3, 2010]

Huawei, a leader in providing next-generation telecommunications network solutions for operators around the world, today released the industry’s first commercially available WiMAX and LTE TDD SingleRAN solution. This end-to-end solution enables operators to seamlessly migrate from WiMAX to LTE TDD networks.

Huawei is the first vendor to offer a commercially available solution consisting of a WiMAX and LTE TDD dual mode remote radio unit (RRU) and dual mode base band unit (BBU), which fully support 2.3GHz, 2.5GHz and 3.5GHz mainstream Time-Division Duplexing (TDD) frequency bands. Based on Huawei’s leading SingleRAN ability, Huawei WiMAX RRU has been widely applied in several operators’ current operating WiMAX networks. It is a 4T4R (four transmitters and four receivers) design that supports multi-input multi-output (MIMO) and Beamforming (BF), and it can be flexibly configured as a WiMAX module, a LTE TDD module, or a WiMAX and LTE TDD dual mode module simply by upgrading the software.

This solution also features an end-to-end advantage by adopting Huawei’s SingleEPC packet core network solution, which enables GPRS, UMTS, LTE, and WiMAX users alike to enjoy high-speed mobile broadband access with converged and smart network management.

“Huawei’s WiMAX and LTE TDD SingleRAN solution will provide our customers with great flexibility,” said Tang Xinhong, Vice President of Wireless, Huawei. “By adopting Huawei’s SingleRAN solution, operators will be well-positioned to adapt and evolve their networks to any standard in the future. This solution also offers operators current investment protection and an overall lower total cost of ownership.”

Huawei supported China Mobile to deploy the world’s first pre-commercial network using its LTE TDD solution. This network successfully demonstrated a variety of mobile broadband services, including high definition (HD) transmission, HD video conference, HD video monitoring, HD video-on-demand (VOD) and HD live broadcasting to visitors in the 2010 Shanghai World Expo Park and some key pavilions.

Huawei has won over 79 commercial WiMAX networks contracts worldwide and is adding new ones faster than any other vendor in the world. Huawei has a wealth of experience in delivering global WiMAX projects, and has partnered with operators worldwide including BSNL in India, Globe in the Philippines and MTN in the Middle East and Africa.

China Mobile Launches World’ s First TD-LTE Network with Huawei’ s E2E Solution [May 6, 2010]

Huawei, a leader in providing next-generation telecommunications network solutions for operators around the world, today announced that it has assisted China Mobile Communications Corporation (CMCC), the world’ s leading telecom operator, launched the world’ s first TD-LTE/SAE trial network enabled by Huawei’ s E2E solution. The network, which offers a more than 10 times faster download data rate than existing 3G networks, will serve the entire 2010 Shanghai World Expo Park and some key pavilions.

Construction of the network faced challenges due to the more than 70 million visitors expected throughout the Expo and the complex coverage area that includes grass lands, rivers, roads and high density buildings. To address these challenges, Huawei’ s industry-leading E2E TD-LTE/SAE solution provides high-quality, high-speed, large capacity and low latency coverage. With this technology, visitors to the Expo will have access to a variety of mobile broadband services, including high definition (HD) video transmission, HD video conference, HD video monitoring, HD video-on-demand (VOD) and HD live broadcasting.

Li Changzhu, Vice President of China, Huawei, said: “This TD-LTE/SAE network is one of the most exciting innovations to be showcased during the Expo. Visitors from around the world will enjoy the unparalleled services offered by China Mobile’ s TD-LTE network. This milestone illustrates Huawei’ s commitment to support operators around the world in delivering truly mobile media experiences to consumers.”

As a major investor in TD-LTE/SAE technology and contributor in the development of its standardization, Huawei believes that the common development of TD-LTE and LTE FDD facilitates the efficient use of limited spectrum resources to meet performance and cost requirements of mobile broadband.

In May 2009, Huawei demonstrated TD-LTE-based inter-site and inter-cell switching for the first time in the world, marking a great leap forward toward massive commercial TD-LTE deployment. To date, Huawei has conducted more than 60 LTE networks, including commercial and trials with world leading operators. As of March 2010, Huawei has submitted more than 4,700 LTE/SAE standard proposal contributions to 3GPP and holds 181 LTE essential patents, becoming No.1 and account for 34% of the infrastructure vendors in LTE essential patents.

Huawei Deploys World’ s First TD-LTE Trial Network for 2010 Shanghai World Expo [Nov 13, 2009]

Huawei, a leader in providing next-generation telecommunications network solutions for operators around the world, today announced the deployment of world’ s first TD-LTE/SAE trial network for China Mobile. This new network with an actual download speed of up to 29Mb/s will be used for 2010 Shanghai World Expo.

Wang Jianzhou, Chairman and Chief Executive Officer of China Mobile, said: “This state-of-the-art network covers the whole site of 2010 Shanghai World Expo, which will fully demonstrate the capability of TD-LTE technology.”

As the only vendor able to provide end-to-end TD-LTE/SAE solutions, Huawei deployed the TD-LTE radio access network and SAE core network for China Mobile, and delivered chipsets and terminals. These infrastructures and terminal devices enabling high definition (HD) video transmission, HD video monitoring, HD video-on-demand (VOD) and mobile Internet will support the live broadcasting and security for the coming events.

“TD-LTE/SAE technologies with the advantage of low latency and high spectrum efficiency are getting increasingly more recognition from operators and telecom organizations.” said Li Changzhu, Vice President of China Marketing, Huawei , “As most of the significant technical innovations will be showcased during the Expo, this TD-LTE/SAE trial network is one of the most exciting innovations during the event. This network adopted Huawei’ s integrated LTE solution of FDD and TDD technologies, as well as the SAE core network which is being used in world-leading operators’ network modernization.”

Huawei has been appointed to deploy the world’ s first LTE network for TeliaSonera and Europe’ s largest LTE network for Telenor. Over 20 LTE/SAE trials have been deployed by Huawei for global operators.

Huawei’ s SAE Solution Successfully Completes TD-LTE Tests for 2010 Shanghai World Expo [Nov 5, 2009]

Huawei, a leader in providing next-generation telecommunication solutions to operators around the world, today announced that it’ s SAE (System Architecture Evolution) solution has successfully completed all the mandatory and optional tests on the TD-LTE trial network for 2010 Shanghai World Expo. The tests were conducted by China Mobile Research Institute and Shanghai Mobile, a subsidiary of China Mobile, to evaluate the LTE/SAE solutions among all the leading vendors for deploying the commercial TD-LTE network for the coming event.

The core network tests verified the functionalities of MME (Mobility Management Entity), Serving Gateway, PDN Gateway and the HSS (Home Subscriber Server). According to the result of the tests, Huawei is the only vendor with its commercial SAE solution that has successfully passed all 119 tests.

“We are honored to have the opportunity to participate in 2010 Shanghai World Expo, and fully confident to support its success through our advanced LTE/SAE network solutions.” said Wang Gang, Director of China Marketing, Huawei Core Network, “The excellent performance of Huawei SAE solution in this test reflects our deep understanding and continuous investment in LTE technology, and the long-term commitment of providing world-leading mobile broadband solutions to operators worldwide.”

As a partner of Shanghai Mobile, Huawei provided end-to-end network solutions for the TD-LTE trial, including mobile network, SAE, terminals, chips and transmission systems.

Huawei Demonstrates World’s First Handoff Tests Between TD-LTE Base Stations [May 14, 2009]

Huawei Technologies Co., Ltd. (“Huawei”), a leader in providing next-generation telecommunications network solutions for operators around the world, today announced that the company was selected by the Next Generation Mobile Network Congress to provide the new end-to-end TD-LTE/SAE solution for field testsat its conference held in Beijing on May 11-12, 2009. World leading operators including Vodafone, NTT DoCoMo, AT&T, China Mobile, TI and TeliaSonera participated in the conference and jointly discussed the development of future networks.

As the sole provider of the network for testing, Huawei conducted a live demonstration of the world’s first handoff tests between TD-LTE base stations with a 100-percent success rate. These field tests demonstrated the ability of Huawei’s network to successfully deliver the handoff or handover technology that facilitates phone calls between different technologies. The completion of the test marks a major forward step in the evolution of TD-LTE technology.

“Due to the rich resources in the TDD spectrum, the application of TD-LTE is currently of great interest to operators both in China and beyond. We are very confident about the future of TD-LTE which is one of the major next-generation mobile broadband platforms.” said Wan Biao, President of Huawei Wireless Product Line. “Huawei is committed to promoting the development of LTE through its proven expertise and extensive global application experience.”

Huawei also showcased the world’s first multi-user access and multi-cell handoff tests based on a TD-LTE network at the event. Different terminalswere used to simultaneously demonstrate the services based on TD-LTE, such as VOD, video phone and VOIP.

Huawei has been researching LTE technology since 2004 and, in December 2008, was awarded with the world’s first LTE commercial contract, with Teliasonera. By the end of March 2009, Huawei had submitted more than 2,500 LTE/SAE applications and has contributed 20 percent of all the patents in LTE field.

The brilliant debut TD-LTE elevates experience at World Expo [by Huawei, April 28, 2011]

The World Expo is a great event to showcase the best achievements of human civilization, including telecommunications advancement. At the 2010 World Expo Shanghai, TD-LTE was first introduced, pointing to the future of 4G mobile broadband in China.

TD-LTE’ s global debut

As one of the world’ s largest mobile operators, China Mobile is a global partner of the Shanghai World Expo. In 2009, it selected vendors including Huawei to deploy the World Expo TD-LTE Demo Network, the first of its kind in the world, signifying the debut of TD-LTE in the largest mobile communications market in the world.

Straddling both sides of the Huangpu River between the Nanpu Bridge and Lupu Bridge, the Shanghai Expo Park covers an area of 5.28 square kilometers and is the largest expo park in history. The Expo is also likely to be the largest World’ s Fair ever in terms of visitor numbers as Expo organizers expect about 70 million visitors during its 6-month run.

To showcase the latest achievements in and promote the TD-LTE industry, China Mobile invited dozens of well-known vendors and providers to join in the demo project in 2009. Thanks to its outstanding overall test results, the strength of its end-to-end solutions and its rich experience in commercial/pilot LTE network deployments outside China, Huawei was selected as a key partner to exclusively build the outdoor TD-LTE network in the Expo Park and provide support and guarantees for outdoor service demonstrations.

For this largest TD-LTE demo network in the world, Huawei has provided an end-to-end TD-LTE solution including base stations, EPC core network equipment, CPE terminals, and a service platform. With 17 outdoor distributed TD-LTE base stations, the solution has delivered complete outdoor coverage for the entire Expo Park and even on the Huangpu River that runs through the Park.

Fabulous TD-LTE experience

On the Shanghai Expo TD-LTE Demo Network, a series of great mobile broadband services are demonstrated, showcasing the advanced TD-LTE capabilities and features, especially the diversified mobile high-definition (HD) video applications that require high-end network and even end-to-end system capabilities.

For various groups such as friendly users and security personnel, the Demo Network facilitates mobile broadband services such as HD video conferencing, multi-way HD video surveillance, portable video surveillance, instant shoot & transfer, and high-speed wireless network access. HD video conferencing, portable video surveillance, and instant shoot & transfer services are all carried over the mobile network for the first time, marking a major breakthrough in mobile broadband development.

Mobile HD conference brings people closer

Video conferencing is efficient while saving time and money. Its increased popularity means that video conferencing systems are expected to be reliable and render high-definition images.

Under normal circumstances, video conferences are held at fixed venues, where access is provided through fixed broadband to meet bandwidth and latency requirements. Yet, it is increasingly desirable for professionals and businesspeople to do business on the move and they expect to have the same real-time communication experience with HD conferencing as they do face to face.

The China Mobile TD-LTE Demo Vehicle in the Expo Park cruises visitors at speeds of up to 40 km/h (speed limit for the Expo Park and nearby roads). Another TD-LTE test vehicle running on the Pudong South Road outside the Expo Park connects users to the Huawei Telepresence HD conferencing system and the TD-LTE network covering the Expo Park. Users are able to experience clear imaging (with delays of less than 1s and with no frame loss nor mosaic), and complete audio/video synchronization. Videoconference participants evidently can get nearly the same experience as in a meeting room and have been duly impressed.

HD video surveillance ensures a “Safe Expo”

The Shanghai World Expo has rapidly attracted visitors from home and abroad. Since the end of May, the average number of visitors has hit 400,000 each day with more than 500,000 per weekend day. All of the venues, roads, pavilions, combined with buses and Huangpu River ferries present major safety and security challenges. To ensure the safety of visitors, an HD video surveillance system has been put in place.

Traditional video surveillance systems are simply not enough. Buses, ferries and people move. In typical mobile video surveillance systems, image definition is often sacrificed for mobility. Mobile video monitors often adopt CIF or QCIF for code resolution and the image definition is usually 1/4 or even 1/16 of standard definition.

The introduction of the mobile HD video surveillance system over the TD-LTE network clears up the images. The system enables the images collected by mobile video monitors to reach the level of standard definition by improving the video quality up to 16 times, allowing for the display of 720P/1080P HD videos. The system not only renders videos with quality comparable to a fixed network but also satisfies other mobility and higher bandwidth needs in terms of end-to-end experience and application scenarios.

Real-time full-range monitoring contributes greatly to effectively ensuring visitor safety and the TD-LTE video surveillance system covers the entire Expo. The ferries on the Huangpu River, buses on the land, and surrounding high-rise buildings are all closely monitored with video specific for various scenarios.

During surveillance planning, China Mobile and Huawei ingeniously introduced portable video transfer. Both TD-LTE CPE (portable TD-LTE terminal) and devices such as batteries and video codecs are put into a backpack weighing about 3kg. Carrying the pack on his/her back, a single person can handhold a portable DV camera, shoot a scene and then transfer the video back to the surveillance center in real time over the TD-LTE network for evaluation. In this manner, the TD-LTE mobile HD video surveillance system perfectly serves the needs of the Shanghai Expo by equally emphasizing all aspects, large or small. General surveillance is thus maintained as more specific and detailed information is scrutinized. Furthermore, portable video transfer is so flexible that it can be deployed whenever needed.

Instant shoot & transfer revolutionizes news gathering and broadcast

Instant shoot & transfer is one of the featured TD-LTE services and it wowed the visitors to the ITU’ s 145th anniversary celebration at the Expo Park on May 17th and the Shanghai NGMN Industry Conference in early June. Hailed as a pioneering move at the Expo, it also represents a technical revolution and a turning point in the history of news video.

Mr. Bill Huang, General Manager of the China Mobile Research Institute, remarked that this service was regarded by the media as a revolution in news gathering and broadcastin his keynote speech at the “TD-LTE Demo Night” on June 2nd at the Shanghai World Financial Center.

Traditional live broadcasting requires the construction of live broadcast facilities like a newsroom or a live broadcast truck. That is often demanding and difficult to do on site, take time to set up and test, and is vulnerable in emergencies. Cost is another major concern, for a set of integrated equipment costs a million or more USD, and with the satellite transmission link, the system really costs an arm and a leg.

By comparison, the TD-LTE-based instant shoot & transfer service replaces the newsroom or broadcast truck with portable integrated equipment that is easy to operate and maintain and costs much less. If we take O&M into account, instant shoot & transfer can definitely save a lot of labor and transmission link costs.

The TD-LTE HD instant shoot & transfer service was jointly demonstrated by China Mobile, Huawei, and other partners, attracting wide attention at the NGMN Industry Conference in the Shanghai World Financial Center. The TD-LTE HD instant shoot & transfer equipment consisted of professional HD cameras, audio and video codecs, and TD-LTE terminals. China Mobile put a large screen in the booth, which played the scenes captured by HD cameras. Video content was encoded and decoded locally and the video code streams were up to the HD standard, with no blurry images, frame loss, or mosaic. The delay of images from the camera to the screen ranged between one and two seconds, and, according to the on-site presenter, the delay was mainly caused by the codecs and would be less than 20ms if the videos were transferred from LTE network equipment. If the codec capability was further improved or a more professional codec was adopted, the end-to-end delay would be so small that you would hardly notice it, said the interpreter. Through the indoor TD-LTE network, the system can directly upload and download HD video code streams without any server platform. News can be collected, edited, and broadcast even while mobile, without location restrictions.

All roads lead to Rome

Skype, YouTube, and Facebook are moving into mobile applications and services. Smart terminals such as the iPhone, BlackBerry, OPhone, iPAD, and Kindle are leading the market. The app store has become a common model for mobile communications giants, and the entire industry is molding the mobile Internet era.

In the future, a more diverse range of mobile Internet terminals will be available for increasingly more users to enjoy better mobile Internet services. In addition, new-generation mobile broadband networks, mostly evolving toward LTE, will provide the infrastructure to guarantee that the mass users embrace the mobile Internet.

In December 2009, TeliaSonera, the largest telecoms operator in Scandinavia and the Baltic countries, launched the world’ s first commercial LTE network in Oslo and Stockholm supplied by Huawei and Ericsson respectively. According to data released by the Global Mobile Suppliers Association (GSA), there were 110 operators committed to LTE network deployments in 48 countries and regions as of June 2010, and 22 LTE networks will be in commercial service or at trial stages by the end of 2010. These operators include traditional GSM/CDMA operators such as Vodafone, T-Mobile, and NTT DOCOMO, CDMA operators like China Telecom and Verizon Wireless, and GSM/TD-SCDMA operators like China Mobile. LTE has no doubt become the common choice for most mobile operators in their migration to mobile broadband.

From the Shanghai Expo Park, TD-LTE’ s brilliant debut marks the beginning of China’ s journey toward LTE mobile broadband.

II. ZTE

ZTE Achieves World’s First TD-LTE and 2G/3G Handover Interoperability Test [July 11, 2011]

TE Corporation (“ZTE”) (H share stock code: 0763.HK / A share stock code: 000063.SZ), a publicly-listed global provider of telecommunications equipment and network solutions, today announced that it has completed the industry’s first interoperability test (IOT) between TD-LTE terminals and GSM/UMTS/CDMA EV-DO networks.

This is the first IOT between a multi-mode TD-LTE terminal and non TD-LTE networks. The success of the test is significant for the entire TD-LTE ecosystem, proving that TD-LTE devices can work seamlessly with existing GSM, UMTS and CDMA EV-DO networks as well as with new LTE FDD and TD-LTE networks. It is expected to promote the convergence of TD-LTE and existing networks, and speed up TD-LTE network deployments.

“The test shows that devices for TD-LTE networks are close to market availability, and that ZTE’s extensive TD-LTE expertise ensures that our existing 2G and 3G networks are able to handle traffic from TD devices,” said Mr. Wang Shouchen, general manager of ZTE TD products.

Most operators have mature 2G/3G networks with huge numbers of subscribers. TD-LTE networks offer operators significant opportunities in terms of using available and often low-cost spectrum, but they need to work concurrently and seamlessly with existing networks and with the next generation of multi-mode devices.

Multi-mode terminals will allow the leading LTE operators to provide global roaming with existing 2G and 3G networks, thus reducing the market entry barriers for LTE development. TD-LTE multi-mode terminals have therefore been one of the core capabilities operators have been concerned about, and are an important indication of TD-LTE ecosystem maturity.

As of April 2011, ZTE had deployed TD-LTE trials and commercial networks for 25 leading global operators in 15 countries covering Europe, India, CIS, Asia-Pacific and Southeast Asia, and has been actively carrying out interoperability testing with other terminal vendors.

ZTE is also a major provider of LTE multi-mode terminals that meet the requirements of different network operators, and can provide a full range of LTE devices including data cards, inbuilt modules, tablet PCs and smart phones.

ZTE to deliver world’s first LTE TDD/FDD dual-mode infrastructure equipment to Hi3G [April 1, 2011]

Operator Hi3G plans to build world’s first LTE TDD/FDD dual-mode network in Sweden and Denmarkto offer next generation mobile broadband networks to its customers with data speeds of up to 100 Mbps.

29 March 2011, Shenzhen – ZTE Corporation (“ZTE”) (H share stock code: 0763.HK / A share stock code: 000063.SZ), a leading global provider of telecommunications equipment and network solutions, today announced the company will deliver LTE infrastructure equipment to operator Hi3G, which plans to build the world’sfirst LTE TDD/FDD dual-mode networks in Sweden and Denmark. As part of the deal, ZTE will also deliver 3G infrastructure equipment to upgrade the operator’s 3G network.

The delivered base stations will be based on ZTE’s Uni-RAN SDR (Software Defined Radio) technology, which enables Hi3G to support all viable mobile standards and frequency bands, housing both the upgraded 3G network and the two versions of LTE: TDD and FDD. The SDR technology also makes it possible for Hi3G to perform future upgrades of its infrastructure without acquiring new base stations.

Peder Ramel, CEO at Hi3G, said: “We have chosen ZTE for additional 3G 900/2100 rollout and for LTE mobile broadband networks in Sweden and Denmark because of the possibility to house three different mobile standards in the same physical infrastructure and the low cost of ownership. Furthermore, ZTE advanced LTE dual-mode solutions and quick consignment responses really meet our requirements.”

Zhu Jinyun, President of ZTE Europe and America, commented: “The agreement with Hi3Gfully demonstrates that ZTE has a great capability to provide solutions for end-to-end multi-mode convergence systems. It further strengthens our position in LTE in Western Europe and will be followed by additional LTE-infrastructure deals, which will be announced shortly.”

ZTE Corporation is a leading supplier in both the TDD and FDD markets. ZTE has worked on more than 20 LTE projects in high-end markets including Spain, the United States and Hong Kong, with established operators such as Telenor, CSL (under Telstra Group), Etisalat, SingTel, Commnet Wireless/NTUA, and China Mobile. ZTE has to date rolled-out 15 LTE commercial networks and over 65 LTE trials in Europe, North America, and the Middle East and Asia Pacific areas.

Thomas Granström, Managing Director for ZTE in the Nordics, said: “The deal with Hi3G signals a real breakthrough for ZTE in the advanced Nordic market, demonstrating our capabilities in providing high speed mobile broadband network infrastructures. The agreement with Hi3G comes on top of a successful year, including several handset launches throughout the region and additional infrastructure deals with Nordic operators in foreign markets.”

Hi3G builds world’s first LTE TDD/FDD dual-mode network

Hi3G expects to develop its Swedish and Danish networks for mobile broadband during 2011and will introduce LTE technology with very high data speeds of up to 100 Mbps for its customers.

Hi3G will exploit its spectrum resources by rolling out two versions of LTE. The two versions are usually referred to as Frequency Division Duplex (FDD) and Time Division Duplex (TDD). The main benefit of the TDD version is that it can make full use of TDD spectrums to maximize data throughput and enhance user experience. Hi3G has acquired 50MHz of TDD spectrum in Sweden and 25 MHz of TDD spectrum in Denmark.

The TDD version of LTE is also used in other parts of the world, for example China. The use of TDD LTE by China will facilitate the world-wide availability of TDD LTE terminals.

The E-Plus Group, China Mobile and ZTE collaborate for TD-LTE field trial in Germany [Feb 17, 2011]

The E-Plus Group will launch a TD-LTE field trial in Germany in Q1 2011. The trial is based on 2.6 GHz spectrum that E-Plus acquired in the German spectrum auction. China Mobile, with its leading position and rich experience in the operation and maintenance of TDD networks, will provide technical support to this trial. ZTE will provide base stations developed on the advanced SDR platform and co-siting solution of LTE FDD/TD-LTE, which is a breakthrough in the industry.

The E-Plus Group is the third largest mobile network operator in Germany. The E-Plus Group has been one of the most innovative mobile operators for years. After revolutionizing the mobile voice market for larger user groups E-Plus is now opening the mobile data market for the masses with low-priced data tariff schemes and the roll-out of a HSPA+ network with speeds up to 21.6 Mbps. On top of the high speed mobile data network roll out, E-Plus will now test TD-LTE in the field. The E-Plus Group is one of the founding members of the Next Generation Mobile Networks (NGMN) Alliance.

The E-Plus Group and ZTE agreed and scheduled a field trial program for 2011consisting of several streams to investigate the capabilities of ZTE’s commercial SDR equipment and best utilisation of the spectrum holdings of E-Plus in 1.8 GHz, 2.1 GHz and 2.6 GHz, both TD-LTE and LTE FDD.

China Mobile claims the largest number of mobile subscribers in the world. From TD-SCDMA to TD-LTE, China Mobile is devoted to promoting TDD industry being equipped with rich experience in TDD network deployment. Furthermore, China Mobile is pro-active in TDD technology globalization and the convergence of the TD-LTE and LTE FDD industry by seeking cooperation with overseas operators in Europe, Asia, America and Australia.

With the joint effort of the E-Plus Group, China Mobile and ZTE, this trial will not only demonstrate the latest progress of TD-LTE/LTE FDD convergence in standards and industry development, but also lay an excellent ground for the full commercialization of TD-LTE.

ZTE Secures 18 TD-LTE Contracts Globally [Feb 16, 2011]

ZTE Corporation (“ZTE”) (H share stock code: 0763.HK / A share stock code: 000063.SZ), a leading global provider of telecommunications equipment and network solutions, today announced it had secured 18 TD-LTE contracts globally, cementing its place as an international and first-class TD-LTE equipment provider.

These contracts are for trial and commercial networks in 12 countries across Europe, the Commonwealth of Independent States (CIS, or the former Soviet Republics) and the Asia Pacific region, including India.

Since entering the TD-LTE field in 2005, ZTE has achieved sustainable development on TD-LTE wireless systems, chipsets and terminals. So far it has established eight TD-LTE R&D centers in America, Europe and the Chinese cities of Shenzhen, Shanghai, Xi’an and Nanjing. The company has over 4000 elite researchers developing wireless systems, core network products and terminal products simultaneously.

Each year ZTE commits 10% of its revenue developing frontier technologies. It now owns 7% of the world’s essential LTE patents, and is one of the companies holding the largest number of independent Intellectual Property Rights (IPR) in the world.

ZTE is actively cooperating with various parties in the TD-LTE ecosystem. The company collaborates on Interoperability Tests (IOT) with mainstream chipset providers such as Qualcomm, Innofidei, Altair, Sequans and ST-Ericsson. It also works to promote the development of the TD-LTE platform and standards. In October 2009, ZTE teamed up with Innofidei to successfully demonstrate the industry’s first multi-vendor TD-LTE high-definition video service at ITU Telecom World 2010 in Geneva.

At the end of 2010, ZTE was the first in the industry to launch Qualcomm chipset based TD-LTE terminals and achieved a download rate of nearly 100Mbps.

In January 2011, consulting company Frost & Sullivan released a research report on the Time-Division Duplex (TDD) market, evaluating the competitiveness of companies in the TD-LTE field based on four criteria including technical accumulation, product convergence, product progress and system openness. In this report, ZTE was ranked No.1 in terms of competitiveness.

ZTE Launches World’s First Commercial TD-LTE Base Stations [June 7, 2011]

ZTE Corporation (“ZTE”) (H share stock code: 0763.HK / A share stock code: 000063.SZ), a leading global provider of telecommunications equipment and network solutions, today announced that it has launched the industry’s first commercial TD-LTE base stations: BBU- B8300 and RRU- R8962. The debut of the two base stations is timely to help accelerate TD-LTE industry commercialization.

ZTE’s B8300 TD-LTE base station is based on ZTE’s SDR unified platform and can be upgraded from TD-SCDMA mode to TD-LTE or TD/TD-LTE dual mode. It fully supports a smooth evolution of carrier networks to LTE and lowers their total cost of ownership.

ZTE’s R8962 TD-LTE base station supports two channels with 20W transmission power each – the highest transmission power and power efficiency in the industry. It incorporates compact size, the most lightweight design in the industry, and meets the growing industry demand for energy savings and emission reduction. Operators will benefit from its innovative product features for multi-mode functions of TD/TD-LTE, as well as its multi-band 2.3/2.6 GHz and multi-scenario indoor/outdoor applications.

To support the ever-growing needs for next-generation network infrastructure, ZTE has deployed more than 250,000 SDR base stations across the globe, including in mainland China, Hong Kong, India and Chile. The company successfully constructed a TD-LTE network for the Shanghai World Expo Press Center, and the company’s 2G/3G dual-mode base station built upon the SDR platform was nominated for a GSMA Global Mobile Award in 2009.

ZTE has taken the lead in LTE development and has achieved significant breakthroughs in the industry. To date, the company has deployed five commercial LTE networks and built 40 LTE trial networks for leading telecom operators in Europe, North America, Asia-Pacific and MEA. With an aim to advance the telecommunications market into 4G technologies, ZTE will continue to drive innovation and introduce market-leading and cost-efficient solutions to the market.

ZTE Completes the World’s First TD-LTE S1/X2 Interface Conformity Test [June 1, 2010]

ZTE Corporation (“ZTE”) (H share stock code: 0763.HK / A share stock code: 000063.SZ), a leading global provider of telecommunications equipment and network solutions, and China’s Ministry of Industry and Information Technology (MII) today announced they have completed the world’s first S1/X2 Interface Conformity test, an important development under MII’s initiatives for the deployment of TD-LTE.

ZTE was invited by MII to conduct the trial in advance of mass-scale system testsdue to the company’s leading position and rich experience in TD-LTE. The test was a success and passed all requirements set forth by MII for the S1/X2 Interface Conformity Test, making ZTE the first in the world to successfully complete the related trials.

ZTE has been actively involved and participated in TD-LTE tests organized by MII and China Mobile. The Company has realized many industry firsts in TD-LTE industry trials. It achieved TD-LTE’s highest theoretical peak download rate in November 2009. In December 2009, ZTE became the first vendor to pass the essential test set for TD-LTE single systems organized by the MTNET Lab of MII followed by the industry’s first field tests.

In addition, in January 2010 ZTE passed the TD-LTE field test held by MII making it the first in the industry to submit a TD-LTE field test report to The LTE/SAE Trial Initiative(LSTI). Subsequently, ZTE successfully completed an indoor MIMO performance test in cooperation with China Mobile, underlining its key role in promoting TD-LTE industry-chain development.

Within LTE network infrastructure, the S1 interface is the communications interface between LTE eNB (base station) and EPC (packet core network), while the X2 interfaces between eNB and eNB. The success of the S1/X2 Interface Conformity test validates that ZTE’s TD-LTE system, including its wireless and core network, fully comply with 3rd Generation Partnership Project(3GPP)standards, and has laid down a solid foundation for the test of S1/X2 IOT.

ZTE has taken the lead in the TD-LTE development and has attained significant achievements in the industry. To date, ZTE has deployed five commercial LTE networks and built 40 LTE trial networks for leading telecom operators in Europe, North America, Asia-Pacific and MEA. With an aim to advance the telecommunications market into 3.5/4G, ZTE will continue to drive innovation and introduce innovative and cost-efficient solutions to the market.

ZTE Partners with CMCC for Ground-Breaking TD-LTE Indoor MIMO Networking Performance Test [March 30, 2010]

ZTE Corporation (“ZTE”) (H share stock code: 0763.HK / A share stock code: 000063.SZ), a leading global provider of telecommunications equipment and network solutions, today announced that, together with CMCC (China Mobile Communications Corporation), it has successfully completed a TD-LTE indoor MIMO networking performance test in Beijing– producing the world’s first batch of TD-LTE performance evaluation data on indoor single/dual path cell throughput. The testing also produced data for indoor multi-UE circumstances.

The test evaluated the construction solution of indoor distribution systems, including whether a two-path system can achieve significant better performance than a single path system under different scenarios and user distributions. Organized by CMCC, ZTE based its results on comparative tests under several different scenarios. The testing found that, under diversified testing circumstances, a TD-LTE two-path indoor distribution system downlink throughput does show dramatic improvements compared with single path indoor distribution system. The data is valuable for the industry for TD-LTE networking construction and efficiency.

ZTE and CMCC partnered earlier this year for the Huairou field test organized by MIIT(China’s Ministry of Industry and Information Technology). ZTE is also taking great initiative in studying and testing MIMO utilization probability in indoor open environments.

ZTE has established itself as a leader in the TD-LTE industry through tests and partnerships across the globe. ZTE and CMCC will jointly deploy a TD-LTE operation network for the Expo News Centre at the World Expo Shanghai 2010. The TD-LTE network will provide high-speed wireless network services to reporters and expo staff from around the world. To date, ZTE has successfully engaged in over 10LTE projects worldwide with leading telecoms including Telstra CSL, Telefonica, SingTel, CMCC, and more.

ZTE Achieves Industry-High TD-LTE Network Downlink Speed of 130Mbps [Dec 11, 2009]

ZTE Corporation (“ZTE”) (H share stock code: 0763.HK / A share stock code: 000063.SZ), a leading global provider of telecommunications equipment and network solutions,today announced that it has successfully demonstrated its TD-LTE network technology and achieved a downlink speed of 130Mbps, the highest level in the industry. ZTE is the first company to reach the theoretical limit of TD-LTE throughput in downlink. Utilizing third-part terminal testing tools, ZTE conducted the tests using ZTE system products including EPC, eNodeB, etc in Guangzhou in November.

ZTE has created a simple and smooth transition path for operators to move to LTE through its mature and stable SDR Base Stations. Networks can be upgraded from TD-SCDMA to TD-LTE or to TD-S/TD-LTE dual-mode through a simple software upgrade, saving operators time and money. At the present time, there are more than 200,000 sets of ZTE SDR products running throughout the world, including in China mainland, Hong Kong, India, Chile and other countries. ZTE’s SDR platform Base Station was honored with a prestigious nomination by GSMA Global Mobile Award for the Best Network Technology

In May 2010, ZTE and China Mobile will jointly deploy a TD-LTE network at the Expo News Center for the World Expo Shanghai 2010. The TD-LTE network will provide high-speed wireless network services, enabling staff and reporters around the world to experience the excellent voice, video and data services of LTE technology during the World Expo.

Based on ZTE’s continuous investment and development in the TD-SCDMA field, ZTE has made great strides in TD-LTE field. During a TD-LTE proof of concept (PoC) test organized by China Mobile, Vodafone and the Ministry of Industry and Information (MII), ZTE scored many of the top marks in the industry testing. As the first vendor globally to report testing results for LTE TDD IODT technology to the Long Term Evolution/System Architecture Evolution Trial Initiative (LSTI) in September 2009, ZTE is effectively driving the development of IODT between the TD-LTE industry and chip manufacturers.

ZTE has more than 2,000 engineers and experts dedicated to the innovation and network development of LTE technology. ZTE is a leading pioneer in LTE terminal research and development, working with operators to driving the global adoption of LTE technology.

ZTE is First to Pass Third-Party UE TD-LTE Test [May 13, 2009]

ZTE Corporation (“ZTE”) (H share stock code: 0763.HK / A share stock code: 000063.SZ), a leading global provider of telecommunications equipment and network solutions today announced that it is the first company to successfully complete and pass the TD-LTE Phase I test together with key industry players including China Mobile, Vodafone and the Ministry of Industry and Information of China on April 15, 2009. The TD-LTE test measures high bandwidth network capacity.

This significant achievement was made known during yesterday’s NGMN (Next Generation Mobile Network) Conference held in Beijing, China. As one of the key highlights of the conference, TD-LTE attracting numerous key industry participants including China Mobile, Vodafone and other leading members of NGMN.

In ZTE’s TD-LTE Phase I test, the results indicated that the downlink sector reached the theoretical peak rate of 39Mbps with a 10M bandwidth, at the same time, ZTE became the first company in the industry to realize 20M bandwidth support. In the trials, ZTE adopted third party test UE (User Equipment) and the downlink peak rate attained TM500’s upper limit of 61.228 Mbps. Upgradable through terminal, the system is designed to support a downlink rate of up to 82.3 Mbps in the future.

Adopting a unified SDR business platform for its system equipment in the test, ZTE is the first vendor to feature pre-business EPC (Evolved Packet Core) to complete the total system tests, highlighting its leading position in commercial applications. As an industry first to use third party UE to complete the tests, ZTE achieved its expected trail results, including zero fault, zero malfunction and 100% connection rate: another technology breakthrough that highlights ZTE’s winning customer offerings with its excellent system stability.

This TD-LTE test also makes ZTE the first company to complete a performance test under a 350Km/h high-speed mobile channel model, reaching the best theoretical value. In fact, in May 2009, ZTE was the first industry vendor to pass China Mobile Institute’s GSM/TD-SCDMA/TD-LTE joint platform testfurther underlining its leading edge in the TD-LTE area.

To date, as one of the leading advocates of the TD industry chain, ZTE has a taskforce of over 3,200 TD R&D engineers with more than 900 devoted to TD-LTE. The Company has submitted more than 400 LTE papers to the 3GPP Conference to further propel and inspire industry development. Through continuous and extensive investments in R&D and manpower, ZTE has been at the forefront of LTE fully demonstrating its leadership in both LTE and TD-LTE.

ZTE Stakes Out Its LTE Credentials [May 20, 2011]

China’s ZTE Corporation has made a huge investment in developing TDD-LTE equipment and solutions, and now it is looking to reap the benefits by winning contracts in the European and American markets.

“Our target is to achieve over 15 commercial LTE contracts in Europe in 2011,” says Li Jian, ZTE’s general manager, CDMA and LTE Product Line. It’s a bold statement of intent and a measure of the increasing confidence the Chinese telecommunications equipment and network solutions provider now has on the world stage. The reasons for this confidence are threefold, according to Li Jian. “It is because ZTE will continue to contribute 10% of its revenue to investment in LTE development. We already have 4,000 engineers and research staff, so this is a very special team devoted to LTE development.”

ZTE has spent a total of RMB 13 billion over the last two years on R&D alone, and the company maintains 15 R&D centres in Sweden, the U.S., France, India, Shenzhen, Shanghai and Beijing.

Li Jian says: “Also, ZTE is very mature in LTE knowledge with a full end-to-end LTE solution and technology. ZTE is the leading software defined radio (SDR) vendor. We came up with SDR, so we think we have a strong ability to lead on this new platform and that’s why we are confident we can win 15 contracts in Europe this year.”

“The third reason ZTE is confident it will hit this target,” she continues, “is that ZTE can customise its LTE solution to whatever the operator’s requirements are. So, operators can deploy ZTE’s LTE equipment on top of their existing infrastructure. This will save on deployment costs and maintenance costs in the evolution from one generation to the next.”

Opinions vary, depending on  what is being measured and how, but a report in February by Open Vista Consulting ranked ZTE among the top three vendors for LTE infrastructure, alongside Ericsson and Nokia Siemens Networks, with 21% of the LTE market.

ZTE is beginning to ride a wave of interest in TDD-LTE, the alternative to FDD-LTE, which is being heavily promoted by the world’s largest operator, China Mobile. The manufacturer is one of several companies that have worked closely with China Mobile over the last three years to develop TDD-LTE.

This commitment has led to a startling jump in influence in terms of the number of international patent applications from ZTE (and indeed, China generally). According to the World Intellectual Property Organisation, ZTE jumped from 23rd place to second in 2011 for international patent applications.

By the end of December 2010, ZTE had a total of 1,863 patent applications registered. It has declared 235 essential LTE patents to ETSI, which accounts for 7% of the total so far. This has propelled ZTE into becoming one of the main holders of basic LTE patents.

The continued investment in R&D has also begun to translate into wider commercial success beyond China despite the economic downturn of the last two years. The percentage of overseas revenue grew from 44% in 2006 to 54.1% in 2010 (US$5.7bn).

Global revenue from principal operations reached US$10.6bn in 2010, up 21% on 2009. Net profit was US$490.7m. According to a Frost & Sullivan report “Insights on 2010 Market Performance”, ZTE had the highest compound annual growth rate among the top vendors―28% between 20082010 and 37.4% between 20062010. It secured contract sales worth up to RMB100 billion in 2010.

“We have 15 commercial contracts and 65 trials around the globe,” reports Li Jian. “But this year ZTE will focus on the high-end markets, such as Europe and the USA. We are looking for deeper and more intensive penetration of these markets.”

Li Jian says that some of the contracts will be undertaken by ZTE itself, while others will be won in partnership. But ZTE will provide the end-to-end solutions.

ZTE showcased its range of LTE base stations at Mobile World Congress in February as well as a number of innovations. Along with its distributed base stations, it also introduced what it claims is the industry’s first all-in-one micro base station, as well as the all-in-one indoor/outdoor macro base station.

The rollout of LTE is beginning to take off in Europe and America, but it is still early days. “In 2009, there were some LTE deployments in European and US markets, but it grew very slowly,” says Li Jian.

“But in 2010, we found that in the second half the trials by networks of LTE were becoming rapid. This year, the operators in Europe and the USA will increase the development of LTE, but it will not reach the explosion point.”

Problems with the availability of frequency and licences for LTE are delaying deployment. The UK 800MHz and 2.6GHz auction will not take place until 2012, for example. The lack of LTE-enabled devices other than dongles for laptops is also slowing down the arrival of LTE. But 2012 is likely to be the year it really takes off.

“Different countries will have different situations,” says Li Jian. “It’s true that some, if not most, are still benefitting from their 2G and 3G networks, but the development of LTE will not be stopped now. The advantages of fast mobile broadband will benefit the operators and enhance their operational capabilities.”

The advantage for ZTE is that over the last year many operators have started to show a keen interest in the TDD-LTE option. FDD and TDD are very similar and can share the same chip. However, FDD uses two frequency bands and TDD just one.

There is more TDD frequency available, it is less used and generally speaking cheaper to get for the operators. And for WiMAX operators, it is easier to convert to TDD-LTE than FDD-LTE should they wish to do so. Hence, there is growing attraction of TDD for mobile carriers. What ZTE’s SDR platform provides is a multimode platform that allows operators to choose FDD or TDD as and when they are ready to do so. But as Li Jian points out it does more than that―it can support the existing technologies too.

“Our base band units (BBUs) connect all the different technologies, so they can support GSM, UMTS, TD-LTE, FDD-LTE and WiMAX in one platform,” says Li Jian, “and that will provide a big cost saving for operators.”

Operators will continue to run their 2G and 3G networks in conjunction with LTE. But ZTE’s SDR platform allows them to invest in new network infrastructure now that will cut network CAPEX and OPEX and future proof them for LTE when it comes on line.

“SDR is a uniform platform―you can do anything on it. You can satisfy any operator requirement, so that will help them save money and satisfy their business development needs at the same time. We try to reuse existing facilities and systems as much as possible,” says Li Jian.

An example of this is the work ZTE has done with Hong Kong mobile operator CSL. In November 2010, CSL launched a commercial LTE/DC-HSPA+ network. “CSL has two GSM, two UMTS and two LTE bands, but it is all based on one platform―you no longer need separate big sized GSM units,” says Li Jian.

The availability of a wide and affordable range of LTE-enabled devices is also critical for the future of the LTE market. But Li Jian says that the development of terminals is growing very fast, “so ZTE will try to develop and provide a total solution to solve the problem and make it easier for operators.”

Besides terminal products, equipment and services, ZTE has invested in chip development. At the end of 2010, ZTE was the first to launch a Qualcomm chipset based on TDD-LTE terminals and achieved a download rate of nearly 100Mbps. “It is this kind of thing that makes ZTE different from other vendors,” says Li Jian.

The rollout of LTE may be protracted, especially in Europe, but ZTE looks to be well positioned to grab a large share of the market, if the number of operator trials it is picking up is anything to go by.

Recent ZTE technology advances showcased at MWC:

LTE-A CoMP prototype: ZTE unveiled its LTE Advanced coordinated multi-point (CoMP) transmission prototype. It incorporates a number of key technologies, such as carrier aggregation, multiantenna enhancement, relay technology and multipoint transmission. CoMP technology ‘dramatically increases’ throughput on the edge. Commercial LTE-A products are due out in 2012.

Multiple Access Binding (MAB) solution: Dubbed the all-join, the MAB solution shows how a UE can bind multiple RATs simultaneously. ZTE demonstrated the binding of LTE and Wi-Fi on a single UE through unified authentication. It then bound multiple access technologies using integrated serving gateway (ISGW) built on the advanced service router platform. MAB is being touted as an effective way to solve data storm issues and provide high quality services by introducing synergy between their access technologies.

C-RAN wireless networking solution: ZTE claims that the cloud of radio access network (C-RAN) solution, first introduced by China Mobile, will lower the total cost of ownership of wireless networks by 40%. It involves the development of a new generation of wireless access networks using centralised processing, collaborative radio, real-time cloud infrastructure, clean system (green wireless access network architecture) and cloud computing.

III. Ericsson (+ acquisition of divested Nortel assets strategic for Ericsson)

CEO sees markets beyond traditional telecom [May 5, 2011]

  • Determined to grow faster than market in traditional segments
  • Addressable market valued at USD 350 billion
  • New customer segments to address

Today at Ericsson’s (NASDAQ:ERIC) Capital Markets Day in Stockholm, President and CEO Hans Vestbergmade remarks on the telecom industry and Ericsson’s position.

“We have just seen the beginning of the massive data growth, driven by smartphones and other mobile devices. These new devices provide operators with new charging capabilities. As a consequence, we are beginning to see signs of changed operator tariffs and pricing models aligned to consumer needs, especially for mobile broadband services and data usage. It’s important for us to follow this development,” Vestberg said.

Ericsson estimates show that the number of mobile broadband users will increase from today’s 400 million to 3.5 billion in 2015.

“These fundamental industry drivers require operators’ to focus on network quality and efficiency. In addition, in the developed world, where the networks have been up and running for quite a long period, we will see operators modernize their infrastructure not only to meet increased data usage, but also to reduce power consumption and use frequencies better. These are challenging operations, requiring deep technology understanding and services capabilities as well as insights on advanced business support systems and understanding of consumer needs in order be successfully performed.”

Vestberg continued by stating that the operator environment is becoming more complex in competition for consumers who are becoming increasingly advanced and demanding.

“We will see new business models emerging and so called coopetition among operators, where they will share platforms and build scale together around applications.”

Vestberg, who took on the position as President and CEO as of January 1, 2010, continued by elaborating on Ericsson’s industry leading position in mobile networks, services and multimedia as well as platforms and handsets via the joint ventures ST-Ericsson and Sony Ericsson. Vestberg said that converged networks is an area where the company intends to continue investing.

“We see good long-term growth opportunities in our traditional segments and we are determined to further strengthen our position and continue to grow faster than the market. Less than 5% of the world’s population has access to 21 Mbit/s or more in the air, at least 1.5 million installed GSM radio base stations must be replaced and in addition we see continued need for services in fields such as consulting, system integration and managed services. We estimate that our addressable market, including joint ventures, is worth USD 350 billion.”

“However, we are not satisfied with our position today and we see new markets to address. The capabilities we have in place today enable us to address customers also beyond traditional telecom operators such as cable and TV-companies, governments, healthcare, transport and utilities. These are industries where there is a huge need for telecommunication services,” Vestberg stated.

Vestberg was also joined by Mr. Manoj Kohli, CEO of Bharti Airtel. Mr Kohli attended via a video link from India and elaborated on the challenges Bharti meets in India where the number of mobile subscriptions grow by 20 million only in March, making India the fastest growing market in the world.

Mats H Olsson, head of Ericsson in China and North East Asia as well as Angel Ruiz, head of Ericsson North America, also joined via video link.

“Mainland China added more than 100 million subscriptions last year and we expect similar numbers in 2010”, said Mats H Olsson. “Non-voice revenues now make up 30% of Chinese operators’ total revenues and one of our focus areas for this year is deployment of TD-LTE in China and LTE in Japan and Korea.  We also see further opportunities to increase our GSM footprint in mainland China”.

“We have taken every LTE-contract announced in North America and with the acquisition of Nortel we now have access to 50% of the marketwe couldn’t approach previously. We take nothing for granted, but we are ready to move to the next level and achieve even greater market leadership”, said Angel Ruiz,

Other Ericsson executives on stage were: Executive Vice President and CFO Jan Frykhammar, Chief Strategist Douglas L Gilstrap, Chief Technology Officer Håkan Eriksson, Executive Vice President and head of business unit Networks Johan Wibergh, head of business unit CDMA Mobile Systems Rima Qureshi, head of business unit Global Services Magnus Mandersson and head of business unit Multimedia Jan Wäreby.

NOTES TO EDITORS:

Bio and photos of Ericsson Group Leadership Team

Read more about the joint ventures Sony Ericsson and ST-Ericsson

Our multimedia content is available at the broadcast room: www.ericsson.com/broadcast_room

Ericsson is the world’s leading provider of technology and services to telecom operators. Ericsson is the leader in 2G, 3G and 4G mobile technologies, and provides support for networks with over 2 billion subscribers and has the leading position in managed services. The company’s portfolio comprises mobile and fixed network infrastructure, telecom services, software, broadband and multimedia solutions for operators, enterprises and the media industry. The Sony Ericsson and ST-Ericsson joint ventures provide consumers with feature-rich personal mobile devices. 

Ericsson is advancing its vision of being the “prime driver in an all-communicating world” through innovation, technology, and sustainable business solutions. Working in 175 countries, more than 80,000 employees generated revenue of SEK 206.5 billion (USD 27.1 billion) in 2009. Founded in 1876 with the headquarters in Stockholm, Sweden, Ericsson is listed on OMX NASDAQ, Stockholm and NASDAQ New York.

www.ericsson.com
www.twitter.com/ericssonpress
www.facebook.com/technologyforgood
www.youtube.com/ericssonpress

Ericsson received award for best contribution to LTE R&D [May 23, 2011]

  • Ericsson received Informa LTE Award at LTE World Summit in Amsterdam
  • Recognized for the best contribution to research and development for LTE
  • Recognition for Ericsson’s strong R&D asset

Ericsson envisions a networked society where everything that can benefit from a connection will have one. LTE is a key enabling technology for making that shift. Hence, relevant and continuous investments in R&D within LTE continue to be essential for Ericsson.

On Tuesday May 17, Ericsson received Informa’s LTE Award at LTE World Summit in Amsterdam for best contribution to R&D for LTE. The award recognizes the contribution towards the research and development of LTE regarding investments made into R&D and research projects undertaken and how the R&D activities have had a positive impact on making LTE commercially successful.

As a result of its extensive investments in R&D and field experience of LTE deployments, Ericsson has had the highest impact on the released LTE specifications and expects to hold 25 percent of all essential patents in LTE. Ericsson has been trusted to supply the large majority of the commercial LTE networks globallyincluding the world’s first commercial LTE network as well as the world’s largest commercial installation of LTE to date. LTE today covers 200 million people and Ericsson networks enable 130 million of those to enjoy a LTE service.

To secure a fast and smooth commercial rollout, Ericsson focuses on supporting user experience being the preferred and largest LTE chipset verification partner and introducing Self Organizing Networks (SON) in the LTE environment. The Ericsson solution for Self Organizing Networks (SON) is crucial for the quick deployment of commercial LTE, offering customers standardized “plug and play” networks with a high degree of automation, saving time while improving performance.

Including all technology areas, Ericsson holds a total of 27 000 granted patents, employs more than 18,000 persons in R&D units spread over 17 countries.

Ericsson wins LTE standards award [May 27, 2010]

Ericsson Research has won an award for the best contribution to LTE standards at the Informa LTE Awards 2010, adding another feather in its 4G technology cap.

Held in conjunction with the LTE World Summit 2010 in Amsterdam that ended on May 19, the LTE Awardscelebrated growth and success across the industry.

Ericsson has had a leading role in developing LTE as a 4G technology from its initial research cooperation to the finalized releases of the standard. It beat competitors in the Best Contribution to LTE Standards category, in which contenders were required to state the contribution they have made to the development of standards and specifications for LTE technology.

“It is really great that our contribution has been acknowledged,” says Mikael Höök, director of Radio Access Technologies within Ericsson Research. “Before the standardization even started we were very active in defining the framework for it. Once it started within 3GPP, we have been very active and shown a huge commitment to it.”

“We need to remember that LTE is continuously evolving and will do so for many years, and that includes standardization of new features and new functionalities in LTE. To maintain our leadership, we need to remain focused and innovative, evolving standards and ensure that our products are unique to make sure we have the solutions that operators are asking for,” he says.

David Astély, Joakim Bergström, Erik Dahlman and Stefan Parkvall from Ericsson Research were acknowledged for their roles in producing high-quality LTE specifications, enabling an early commercial launch of LTE mobile broadband. This has helped generate global industry trust and commitment to the LTE technology.

Next generation LTE, LTE-Advanced or LTE Rel-10 is the next step in radio access technology [Dec 21, 2010]

Next generation LTE, LTE-Advanced

Authors: Stefan Parkvall, Anders Furuskär, Erik Dahlman

Whatever the name – next generation LTE, LTE-Advanced or LTE Rel-10 – the next step in LTE evolution allows operators to introduce new technologies without putting existing investments at risk.

LTE radio access technology is continuously evolving to meet the requirements of regulators, operators and users. The first fully commercial and operational 4G mobile broadband systems, currently being deployed, are based on the first release of LTE, 3GPP Rel-8, which was finalized in 2008. Rel-9, finalized at the end of 2009, added support for broadcast/multicast services, positioning services, and enhanced emergency call functionality, as well as enhancements for downlink dual-layer beam forming.

Today, the main focus of 3GPP is the next generation of LTE evolution, Rel-10, often referred to as LTE-Advanced. Rel-10 further extends the performance and capabilities of the LTE radio access technology, and meets all of the requirements for IMTAdvanced as defined by ITU.

In October 2010, ITU completed the assessment of submissions for global 4G mobile wireless broadband technology, LTE Rel-10 (submitted by 3GPP) was one of two technologies accorded the official designation of IMT-Advanced.

This article provides a brief introduction to IMT-Advanced, followed by a description of the extensions to LTE introduced as part of 3GPP Rel-10. It concludes with system-level results that illustrate the ability of LTE Rel-10 to fulfill and even surpass the IMT-Advanced requirements.

The complete article (pdf)

Long Term Evolution (LTE) – An Introduction [June 1, 2009]

The internet generation is becoming used to having broadband access everywhere. Of the estimated 3.4 billion people who will have broadband by 2014, about 80 percent will be mobile broadband subscribers – and the majority will be served by High Speed Packet Access (HSPA) and Long Term Evolution (LTE) networks.

People can already browse the internet or send e-mails using HSPA-enabled notebooks, replace their fixed DSL modems with HSPA modems or USB dongles, and send and receive video or music using 3G phones. With LTE, the user experience will be even better. It will enhance more demanding applications such as interactive TV, mobile video blogging, advanced games and professional services.

In capacity terms, LTE already meets key 4G requirements, providing downlink peak rates of at least 100Mbit/s. Its infrastructure is designed to be as simple as possible to deploy and operate, through flexible technology that can be used in a wide variety of frequency bands.

LTE will also be available in a wide range of terminals; not only in next-generation mobile phones but also in notebooks, ultra-portables, cameras, camcorders, mobile broadband routersand other devices that benefit from mobile broadband.

Download White Paper

Long Term Evolution (LTE) – An Introduction (pdf)

Strategic cooperation with Datang for mobile technology development in China [April 20, 2010]

      • Richer mobile communications for millions of Chinese consumers
      • Research, development and commercial cooperation within TDD technology

Ericsson (NASDAQ:ERIC) has signed a memorandum of understanding to establish strategic cooperation with Datang Telecom Technology & Industry Holdings Co. Ltd. (Datang) to jointly develop advanced TDD solutions, with the goal to deliver richer mobile communications to consumers in China and around the world.

As part of the memorandum of understanding, Ericsson will start integrating Datang’s current best-in-class TD-SCDMA radio access network equipment into its own 3G mobile communications offering.

More than six million mobile users in China are already enjoying mobile services through this technology. TD-LTE being the next generation of TD-SCDMA technology is also being tested pre-commercially to satisfy the growing appetite for higher speed and richer applications of the Chinese mobile subscribers in due time.

Ericsson set up a joint research center with Datang in Beijing as early as January 2008 to carry out research cooperation in TDD technology. The strategic cooperation formed now takes the relationship between the two parties to a substantially new level.

The strategic cooperation aims to leverage Ericsson’s leading position in global mobile communications, its unique experience from global LTE commercial deployment and its common platform for FDD and TDD, as well as Datang’s industry-leading expertise in TDD technology. Such move will increase the industrialization capabilities of TDD solutions by achieving economies of scale, improve the interoperability of operators’ 2G/3G/4G networks, and provide support to a successful commercial launch of TD-LTE in China in the near future.

“Leveraging our global leadership position in LTE, we have been firmly committed to evolving TD-SCDMA to TD-LTE,” said Mats H Olsson, Head of Region China & North East Asia of Ericsson. “Now we are further strengthening that commitment by this strategic cooperation with Datang. Our promise remains the same: we will always strive for providing the best TDD products and services to the Chinese consumers and to the world.”

Chen Shanzhi, Vice President and CTO of Datang Telecom Technology & Industry Group said: “Ericsson is the world-renowned telecom solutions and services provider. The cooperation between Ericsson and Datang to jointly develop TDD products and solutions demonstrates the recognition of Datang’s innovative R&D results, industrialization and market capabilities in the TDD field from mainstream telecom suppliers in the world. We believe that our joining forces will drive the globalization of TD-SCDMA and play an important role in the industrialization of TD-LTE in the long run.” Chen Shanzhi continued, “The strategic cooperation that we establish now will help both parties to fully leverage on our respective resources so that we can together provide products and services that meet the requirements of China Mobile.”

Datang Telecom Group is the initiator of the 3G mobile communication TD-SCDMA international standard, the owner of its core intellectual property rights and an important promoter of its industrialization.

Ericsson supplies largest LTE network [Dec 14, 2009]

TeliaSonera has launched the world’s first and largest commercial Long Term Evolution (LTE) service in Stockholm, supplied by Ericsson. This historic rollout was completed well ahead of plan on December 14, 2009. TeliaSonera’s mobile broadband commercial network in Stockholm is the fastest and largest in the world to date.

Carl-Henric Svanberg

Carl-Henric Svanberg, President and CEO of Ericsson, says he is excited about this historic moment: ”The new era of mobile broadband has just begun today. With LTE, so-called 4G, your mobile broadband experience is moving to unequalled levels. The LTE speed gives you an absolutely effortless feeling of broadband access.”

Kenneth Karlberg, President and Head of Mobility Services, TeliaSonera says: ”We are very proud to be the first operator in the world to offer our customers 4G services. Thanks to the successful cooperation with Ericsson we can offer 4G to our customers in Stockholm earlier than originally planned.”

LTE, the next generation of mobile communication technology, is designed for transferring huge amounts of data in a most cost and energy efficient way, optimizing the use of frequency band and realizing fiber-like access speed over the air. With decreased latency, consumers can now enjoy whatever service is available online – high definition (HD) video, network games, you name it – effortlessly and on the move.

LTE

Downtown Stockholm is now covered by the Ericsson LTE network, making it the largest LTE deployment to date. TeliaSonera’s subscribers are the first to have access to the LTE service by commercially available Samsung LTE dongles.

Ericsson has completed commercialization of its LTE products, and larger-scale production is ready for further deployment. Interoperability has been tested thoroughly with many different devices in different

LTE rollout for AT&T in the US [Feb 10, 2010]

  • AT&T to build LTE network
  • Ericsson named as key supplier for LTE equipment
  • Commercial launch scheduled to begin 2011

LTE is the latest step in a wireless evolution that Ericsson (NASDAQ: ERIC) began with AT&T over two decades ago and is part of AT&T’s ongoing efforts to innovate and invest in mobile broadband.

AT&T serves more than 85.1 million customers and has seen mobile broadband growth of more than 5,000 percent over the past three years. Smartphones are just one example of innovation made possible by investment in mobile broadband.

After extensive testing of equipment from multiple suppliers in lab and field environments, AT&T chose to extend its existing relationship with Ericsson for LTE deployment. The agreement also complements AT&T’s strategy to continue to boost the speed and performance of 3G mobile broadband to deliver the best, most advanced customer experience for customers throughout the evolution toward LTE.

As part of this multi-year agreement, Ericsson expands its key supplier role with AT&T by delivering LTE network equipment as well as a full suite of services to design, deploy and optimize the LTE network.

AT&T plans field trials of LTE technology later this year, and commercial deployment is scheduled to begin in 2011.

“The announcement is an important step forward in our ongoing mobile broadband strategy, which is focused on delivering the best possible combination of speed, performance and available devices for customers at every level of technology deployment,” said John Stankey, president and CEO, AT&T Operations. “AT&T has a key advantage in that LTE is an evolution of the existing GSM family of technologies that powers our network and the vast majority of the world’s global wireless infrastructure today.”

Hans Vestberg, president and CEO, Ericsson said: “Our ability to work together to meet the demands of a rapidly changing market has been a crucial element in gaining AT&T’s continued confidence. We will work just as hard to secure a smooth rollout of LTE and support AT&T in introducing new consumer and business services moving forward.”

AT&T previously named Ericsson as a key supplier for wireline accessproducts and services. Ericsson can offer wireline solutions to accelerate AT&T’s ability to bring new broadband-based products and services to market.

To date, Ericsson has signed commercial LTE contracts with four other major global operators, two of which are in the United States, the world’s fastest growing LTE market.

LTE, the next generation of mobile communication technology, enables the fast transfer of huge amounts of data in an efficient and cost-effective way, optimizing the use of the frequency spectrum. With increased speed and decreased latency, consumers can enjoy a wide range of applications (real-time web, online gaming, social media collaboration and video conferencing) effortlessly and while on the move. LTE will meet the demands of new and enhanced mobile internet applications of the future.

Ericsson has been driving open standards and has had the highest impact on the released LTE specifications. Ericsson expects to hold 25 percent of all essential patents for LTE, making it the largest patent holder in the industry.

Notes to editors:

[a small country operator example]
Ericsson selected by Magyar Telekom to modernize its network [May 4, 2011]

  • Market leader Magyar Telekom in Hungary chooses Ericsson as sole partner to modernize its radio access network and prepares for LTE
  • New  contract involves total overhaul of radio access network

With ever-increasing demands for data services and a strong commitment to providing the best available network performance and quality to its customers, leading Hungarian operator Magyar Telekom, of the Deutsche Telekom Group, has chosen Ericsson (NASDAQ: ERIC) to undertake a complete overhaul of its radio access network. The overhaul will drastically decrease Magyar Telekom’s operational costs while further expanding mobile broadband service performance and coverage.

Ericsson will transform Magyar Telekom’s 2G and 3G networks using the multi-standard RBS 6000 radio access network, which will also be ready for 4G/LTE functionality once licenses have been allocated.

Istvan Maradi, Chief Technology Officer of Magyar Telekom says:,”Our partner, Ericsson, will make sure our network will meet the most demanding expectations and help us to stay on top in Hungary. It is also makes sense for us to prepare our network for easy introduction of LTE functionality by using Ericsson’s multi-standard network.”

Nils de Baar, Head of Global Account for DT Group at Ericsson, says: “We believe in Magyar Telekom’s wise decision to introduce a multi-standard technology when the aging 2G network needs a strong boost. This will bring both a reduction in OPEX and a better user experience, while also preparing the network to meet the ever-growing demand for mobile broadband. This is a prestigious obligation for us and we will make every effort to meet our customers’ expectations.”

Ericsson Hungary celebrates 100 years in Hungary in 2011. Ericsson today has the largest R&D operation in the country. Emil Nilsson, Head of Customer Unit Central Europe and President of Ericsson Hungary, said: “This great win further emphasizes the importance of our long presence in the country and strong focus on technology leadership. With the agreement with Magyar Telekom, Ericsson has teamed up with the market leading operator once again in Hungary.”

Notes to editors:

Ericsson Hungary

Ericsson Hungary celebrates 100 years in Hungary in 2011. Ericsson Hungary believes it is the task of Ericsson to participate in developing the future of mobile and broadband internet communication with innovative solutions and to play a determinant role in forming the world of telecommunications through its activities related to the most advanced, leading research and technologies. Hungary, and the R&D center operating in the country, are to play a leading role in achieving this – of the almost 1500 employees in the country, more than 1000 are working in research and development, making Ericsson the largest company in Hungary dealing with telecom research and development. This year’s centenary milestone will be marked by two special achievements: one is the continual development of R&D activities, the other is today’s announcement that the market-leading operator has chosen the market leader in technology.

http://www.ericsson.com/yourbusiness/telecom_operators/mobile-broadband

Vestberg foresees industry shift [Feb 15, 2010]

  • 3 billion new mobile broadband subscriptions in next five years
  • Industry focus on network capacity and quality
  • Innovation, speed and flexibility key success factors

Speaking at Ericsson’s (NASDAQ:ERIC) press conference at the GSMA Mobile World Congress in Barcelona Hans Vestberg, President and CEO, said, “Our future success will be determined by the ability to see beyond technology, stay ahead of our customers and solve their problems before they are even aware of them. This will require us to always put our customers first, always have the best competence and to drive innovation throughout the customer relationship.”

“In the past decade telecommunications have become the nerve system of the world. The number of mobile subscriptions worldwide has grown sixfold to 4.6 billion. Mobile broadband has had its breakthrough and we believe that we will see 3 billion new mobile broadband subscriptions in the next five years.

“We forecast that by 2015 mobile PC subscriptions will have grown six times and the traffic generated will grow more than 50 times compared with the end of 2009. In the same time period smartphone devices will grow four times and the traffic they generate will have grown more than 25 times. The rapidly increasing traffic puts a focus on network capacity and quality.

“We envision 50 billion connected devices by 2020. Patients will be remotely connected to hospitals, trucks will be online with logistics centers for efficient routing, and city students will be connected to students in rural villages halfway around the world. Several operators have already established machine-to-machine departments to meet these demands. In this development we have to move from traditional telecom to IP, from hardware to software and from network rollouts to network evolution.

“HSPA and 4G/LTE will enable the 50 billion connected devices and the continued traffic growth. Several leading operators have given us the confidence to deliver their 4G/LTE networks and we have established technology leadership and scale advantages.

“The overall LTE package with products and services is very competitive. We have taken these products to mass production and can manufacture on a large scale, which is a clear competitive advantage. The competition is fierce, but we can have grounds for having good self-confidence.”

Following the recent win with AT&T Ericsson now supplies its 4G/LTE solutions to operators that have a total of some 240 million subscribers. In the audience was Mr John Donovan, Chief Technology Officer at AT&T who briefly commented on his company’s plans for its LTE buildout and the reason for selecting Ericsson as its LTE equipment supplier.

Hans Vestberg continued, “In 2009 we significantly strengthened our position in North America. The rationale for the acquisition of the Nortel CDMA and LTE operations was to extend our footprint, expand customer relationships and gain a profitable CDMA business in North America. As the integration progresses, we are seeing opportunities for further CDMA business also outside North America.

“As the industry again moves into new territories, our role as a vendor must shift from just being a technology and services supplier to being a business enabler. Operators are looking to us to manage the increasing complexity of their networks so they can concentrate on enhancing the user experience. Our continued success in this area shows the value of our services offering. We will have to combine our strong technology leadership position and services capabilities to provide value to our customers. We have to drive innovation in both technology and business models,” concluded Vestberg.

Hans Vestberg, President and CEO

Notes to editors:

Ericsson part of winning bid for Nortel’s patent portfolio [July 1, 2011]

  • Ericsson’s contribution to transaction USD 340 million
  • Expected to close in the third quarter of 2011

As announced separately by Nortel Networks Corporation, a consortium of certain technology companies, of which Ericsson (NASDAQ:ERIC) is a part, emerged as the winning bidder for all of Nortel’s remaining patents and patent applications for a cash purchase price of USD 4.5 billion. The transaction is subject to approval by the United States and Canadian Bankruptcy Courts.

The Nortel patent portfolio comprises approximately 6,000 patents and patent applications from information and communication technologies (ICT) industry, including telecommunications, internet search and social networking. It covers mobile, LTE and data networking as well as optical, internet, service provider, semiconductors and other patent portfolios.

Kasim Alfalahi, Chief Intellectual Property Officer at Ericsson, says: “The Nortel patent portfolio reflects the heritage of more than 100 years of its R&D activities and includes some essential patents in telecommunications and other industries. We believe the consortium is in the best position to utilize the patents in a manner that will be favorable to the industry long term.”

SEB Enskilda is acting as financial advisor to Ericsson in the transaction.
Notes to editors:Read more at www.nortel.com/ [Nortel Announces the Winning Bidder of its Patent Portfolio for a Purchase Price of US$4.5 Billion: … After a multi-day auction, a consortium emerged as the winning bidder with a cash purchase price of US$4.5 billion. The consortium consists of Apple, EMC, Ericsson, Microsoft, Research In Motion and Sony. …]

Ericsson closes the Acquisition of GDNT, China [May 12, 2011]

  • Ensures continued development of CDMA and GSM businesses
  • All assumed agreements will be honored and fulfilled
  • Adds R&D, manufacturing and services capabilities

Ericsson (NASDAQ:ERIC) has today completed the asset purchase agreement to acquire certain assets of the Guangdong NortelTelecommunications Equipment Company Ltd (GDNT). This acquisition gives Ericsson talented R&D engineers, manufacturing and services professionals, as well as manufacturing and research facilities in the China region and ensures continued development of the CDMA & GSM businesses.

“With these new assets, we can even better support our customers globally,” said Rima Qureshi, Senior Vice President and Head of Business Unit CDMA Mobile Systems. “Our new and agile employees complement the existing R&D, manufacturing and services capabilities of our business.”

Mats H Olsson, President of Ericsson China & North East Asia said: “The completion of this acquisition reaffirms our strong commitment to the China market, while greatly enhancing our existing R&D, manufacturing and services capabilities in the region. I’m very happy to welcome this new source of energy into the Ericsson family and look forward to its continuous contribution to the development of GSM and CDMA markets not only here in the region, but also in the world.”

Today’s closing follows the announcement on December 1, 2010, that Ericsson was entering into an asset purchase agreement to acquire certain assets of the Guangdong Nortel Telecommunication Equipment Company Ltd (GDNT).

Some 1,000 former GDNT employees, including approximately 550 R&D engineerswill be integrated in to the Ericsson group over the coming months and will work under the Ericsson brand effective today. Former GDNT customers gain a business partner dedicated to the ongoing support of their networks and the assurance of a seamless transition. Manufacturing and Services will operate as a separate business entity, known as “Ericsson (Guangdong Shunde) Communications Company Limited, effective immediately.

SEB Enskilda acted as Ericsson’s sole financial advisor in the transaction.

Notes to editors:
Pictures of quote: www.ericsson.com/ericsson/press/photos/management.shtml

Acquisition of GDNT, an R&D and services company in China [Dec 1, 2010]

  • Secures continued development of CDMA and GSM businesses in China
  • Complements existing R&D and services capabilities in the region
  • Purchase price is USD 50 million

Ericsson (NASDAQ:ERIC) has today signed an agreement to acquire certain assets of the Guangdong Nortel Telecommunication Equipment Company Ltd (GDNT). The purchase is structured as an asset sale at a cash purchase price of USD 50 million on a cash and debt free basis, subject to final balance sheet adjustments. The transaction is also subject to customary regulatory approvals and other conditions.

GDNT is a leading research, development and manufacturing company based in China and an important supplier to Ericsson following the acquisitions of the CDMA and GSM businesses of Nortel. GDNT was founded in 1995 as a joint venture between Nortel, a Canadian Telecommunications Company and local Chinese corporations and telecom operators.  The transaction also includes R&D facilities, manufacturing facilities as well as support and customer service in China. Some 1,100 employees, including approximately 550 R&D engineers will be integrated in to the Ericsson group over the coming months.

“We are very happy to welcome this key competence into Ericsson’s newest business unit,” said Rima Qureshi, head of Ericsson’s CDMA Mobile Systems unit.  “We have built a strong foundation with the CDMA & GSM teams acquired from Nortel. With these new assets, we take control of our business by acquiring capabilities for the continued development of the CDMA & GSM businesses.”

“The acquisition greatly complements our existing R&D, manufacturing and services capabilities in the region,” said Mats H Olsson, President of Ericsson China & North East Asia. “It will no doubt allow us to provide even better support to our customers across the region who are serving one of the largest GSM and CDMA subscriber bases in the world.”

The transaction is expected to have a positive effect on Ericsson’s earnings within a year after closing.

SEB Enskilda is acting as Ericsson’s sole financial advisor in the transaction.

Notes to editors:

Pictures of Rima Qureshi and Mats H Olsson:
www.ericsson.com/ericsson/press/photos/management.shtml

Acquisition of Nortel’s stake of the joint venture LG-Nortel [April 21, 2010]

  • Strengthened ability to serve the Korean market and reach new customers
  • Second largest installed base with all leading Korean operators
  • Purchase price is USD 242 million on a cash and debt free basis
  • New name of the joint venture will be LG-Ericsson

Ericsson (NASDAQ:ERIC) has today entered into a share purchase agreement to acquire Nortel’s majority shareholding (50%+1 share) in LG-Nortel, the joint venture of LG Electronics and Nortel Networks. The transaction is subject to customary regulatory approvals.

This acquisition will significantly expand Ericsson’s footprint in the Korean market and provide Ericsson with a well established sales channel and strong R&D capability in the country. Furthermore, the acquisition will provide Ericsson with an industrial base and the ability to build new customer relationships.

The joint venture includes important contracts with Korean operators such as KT, LG Telecom and SK Telecom.

LG-Ericsson will become one of the major telecom players in Korea.

“Korea is one of the largest telecom markets with advanced end-user demand of new services. A strengthening of our position through the collaboration with our new partner LG Electronics will enhance our position for future technology shifts such as LTE,” said Hans Vestberg, President and CEO of Ericsson.

“LGE is pleased to have Ericsson as a new partner in this joint venture,” said Yong Nam, Vice Chairman and CEO of LG Electronics. “Ericsson will provide global industry experience and technical expertise that will benefit both customers and employees. We look forward to a fruitful future collaboration.”

“LG-Ericsson is expected to provide the Korean market with leading technology and customer supports in cooperation with Ericsson’s Global Leadership in Telecommunication market. We are excited by the new perspective for our company.” said Jae Ryung Lee, CEO of LG-Nortel.

The joint venture was established in 2005 through the contribution by LG Electronics of its telecommunications systems business and by Nortel of its Korean distribution business. The focus of the joint venture has been to develop and market large scale telecommunications systems such as WCDMA, CDMA and LTE for telecom service providers in Korea as well as enterprise products and services. In 2009, LG-Nortel generated approximately USD 650 million of sales and had 1,300 employees.

The joint venture will continue to be headquartered in Seoul, Republic of Korea.

In July 2009, Ericsson and the Korean government agreed to cooperate in growing a green ecosystem based on 4G technology. The competence in LG-Ericsson is expected to contribute to this initiative.

The transaction is expected to have a positive effect on Ericsson’s earnings within a year after closing.

SEB Enskilda is acting as Ericsson’s sole financial advisor in the transaction.

Acquisition of substantially all the assets of Nortel’s GSM business completed [April 1, 2010]

  • Emphasizes commitment to North American market
  • Accretive to Ericsson’s earnings within a year

Ericsson (NASDAQ:ERIC) has completed the acquisition of Nortel’s North American GSM business. Today’s closing follows the announcement on November 25, 2009, that Ericsson had entered into an asset purchase agreement for these assets.

“The addition of Nortel’s skilled GSM experts adds additional depth to Ericsson’s newest business unit,” said Rima Qureshi, head of Ericsson’s CDMA unit.  “The CDMA team acquired from Nortel late last year has built a strong foundation already, and this new acquisition places us in a great position to support our growing list of North American and International customers.”

“The completion of this acquisition strengthens our position as a leading provider of telecommunications technology and services in the United States and Canada and shows our commitment to the market,” said Angel Ruiz, Head of Ericsson North America. “The skill and experience the Nortel employees bring to Ericsson will help us continue to provide exceptional services to our customers.”

The acquisition includes the transfer of important GSM business with North American operators and further strengthens Ericsson’s ability to serve North America’s leading wireless operators.  More than 350 employeesfrom Nortel will be integrated in the Ericsson group over the coming months.

The acquired operations are expected to be accretive to Ericsson’s earnings within a year after closing.

Ericsson’s bid for Nortel’s GSM assets was made together with Kapsch CarrierCom AG of Austria. Under the two transactions Ericsson is acquiring certain assets of Nortel’s GSM business in North America and Kapsch is acquiring certain assets outside North America.

In 2009, Ericsson also acquired Nortel’s CDMA and LTE assets in North America.

Notes to editors:Photos of Rima Qureshi and Angel Ruiz:
www.ericsson.com/ericsson/press/photos/management.shtml

Ericsson to acquire Nortel’s North American GSM business [Nov 25, 2009]

Ericsson (NASDAQ:ERIC) was today selected as successful bidder to acquire certain assets of the Carrier Networks division of Nortel relating to Nortel’s GSM business in the US and Canada. The purchase is structured as an asset sale at a cash purchase price of USD 70 million on a cash and debt free basis, subject to adjustments. This announcement follows the completion of the auction process initiated by Nortel, and the transaction is subject to approval by courts in the US and Canada and customary regulatory approvals and other conditions.

Ericsson’s bid for Nortel’s GSM assets was made together with Kapsch CarrierCom AG of Austria. Under the agreements, Ericsson is acquiring certain assets of Nortel’s GSM business in North America while Kapsch is paying USD 33 million to acquire most of the remaining assets outside North America.

Ericsson acquires an installed GSM base, which expands its North American footprint. The acquisition further strengthens Ericsson’s ability to serve North America’s leading wireless operators, which now benefit from the strength of the combined resources in an experienced and financially strong company.

Along with our recent acquisition of Nortel’s CDMA and LTE assets, the transaction emphasizes Ericsson’s commitment to the North American market and strengthens our position as a leading provider of telecommunications technology and services in the United States and Canada” said Hans Vestberg, incoming President and CEO of Ericsson. “Our Ericsson family will be once again enriched by the addition of the valuable Nortel employees.”

The agreement includes the transfer of important GSM business with North American operators such as AT&T and T-Mobile. Under the agreement Ericsson will offer employment to approximately 350 employees from Nortel. Nortel’s North American GSM operations generated approximately USD 400 million in 2008.

Ericsson’s North American business generated SEK 17.9 bn (USD 2.7 b) of sales in 2008, mainly from GSM and WCDMA equipment and associated services. Together with the recently announced acquisition of CDMA and LTE assets as well as the Sprint services agreement, the acquisition makes North America the largest geographical segment within Ericsson and encompasses some 14,500 employees, up from 5,000 at the beginning of 2009.

The acquired operations will contribute top- and bottom-line additions to Ericsson. The transaction is expected to have a positive effect on Ericsson’s earnings within a year after closing.

Consummation of the transaction is subject to approval by the United States and Canadian Bankruptcy Courts and the satisfaction of regulatory and other conditions.

SEB Enskilda is acting as Ericsson’s sole financial advisor in the transaction.

Notes to editors: Picture of Hans Vestberg:
www.ericsson.com/ericsson/press/photos/management.shtml

Previously announced information on Ericsson’s acquisitions of Nortel assets:
www.ericsson.com/ericsson/press/releases/20090725-1330882.shtml
www.ericsson.com/ericsson/press/releases/20091113-1354893.shtml
www.youtube.com/ericssonpress#p/u/7/D3yDHV9O_5o

Ericsson closes the Acquisition of Nortel’s Multiservice Switch business [March 11, 2011]

  • High level of data experience in key locations
  • Customers gain a stable, committed partner
  • The Multiservice Switch business will operate under the Ericsson brand as of today

Ericsson (NASDAQ:ERIC) has today completed the asset purchase agreement to acquire Nortel’s Multiservice Switch business. This acquisition gives Ericsson access to a strong product portfolio and installed base in the data segment while ensuring the supply of the platform for the recently acquired CDMA and GSM units.

“We are gaining a solid business with a significant installed base and technology that complements our existing Ericsson portfolio. In key locations around the globe, we grow our data capability with experienced and talented people.” said Rima Qureshi, senior vice president and head of business unit CDMA Mobile Systems.

An important part of the CDMA ecosystem, the Multiservice Switch business offers the sale and support of data networks and switching platforms for core networks within the wireless and carrier voice divisions, previously acquired from Nortel. The Multiservice switches, to be called PPX henceforth, serve a valuable need for a multiplicity of services that the backbone network provides today for our customers.

Today’s closing follows the announcement on September 25, 2010, that Ericsson was entering into an asset purchase agreement for substantially all of the assets of Nortel’s Multiservice Switch Business.

The former Nortel Multiservice Switch staff will be integrated into the Ericsson group in business unit CDMA Mobile Systemsover the coming months and will work under the Ericsson brand effective today. Former Nortel customers gain a stable partner committed to the ongoing evolution of their networks and the assurance of a seamless business transition.

SEB Enskilda acted as Ericsson’s sole financial advisor in the transaction.

Notes to editors: Photos of Rima Qureshi:
www.ericsson.com/ericsson/press/photos/rima_qureshi.shtml

Acquisition of Nortel’s Multi-Service Switch business [Sept 25, 2010]

  • Confirms commitment to CDMA portfolio
  • Strengthens R&D and services capabilities within CDMA
  • Cash purchase of USD 65 million

Ericsson (NASDAQ:ERIC) has today entered into an asset purchase agreement to acquire Nortel’s Multi-Service Switch business (MSS). This acquisition gives Ericsson access to a strong product portfolio and installed base in the data segment while ensuring the supply of the MSS platform for the recently acquired CDMA and GSM units.

An important part of the CDMA ecosystem, MSS offers the sale and support of data networks and switching platforms for core networks within the recently acquired wireless and carrier voice divisions. MSS serves a valuable need for a multiplicity of services that the backbone network provides today for our customers.

The purchase is structured as an asset purchase at a cash purchase price of USD 65 million on a cash and debt free basis, subject to adjustments. This announcement follows the completion of the auction process initiated by Nortel, and the transaction is subject to court approval and customary regulatory approvals.

“Today’s announcement is further evidence of our commitment to our CDMA portfolioas we continue to strengthen our in-house R&D and services muscle to deliver on the innovation, collaboration and support that our customers have come to expect from us.” said Rima Qureshi, senior vice president and head of business unit CDMA Mobile Systems.

Consummation of the transaction is subject to approval by the relevant Bankruptcy Courts and the satisfaction of regulatory and other conditions.

SEB Enskilda is acting as Ericsson’s sole financial advisor in the transaction.

Notes to editors:Photos of Rima Qureshi:
www.ericsson.com/ericsson/press/photos/rima_qureshi.shtml

Ericsson strengthens global position with completion of Nortel acquisition in North America [Nov 13, 2009]

Ericsson (NASDAQ: ERIC) today completed its acquisition of substantially all of Nortel’s CDMA business and LTE assets in North America. With this acquisition, Ericsson enhances its leading global telecommunications equipment supplier position and will further its quest to bring high-speed data connectivity to people on the move.

The Nortel acquisition, on the heels of important breakthrough contract wins for Ericsson in North America, positions Ericsson as the leading provider of telecommunications technology and services in the United States and Canada.

“Separately, our two companies played leading roles in freeing voice telephony from its fixed limitations,” said Hans Vestberg, Ericsson’s incoming president and chief executive officer. “Together, we will do the same for broadband – make it mobile and bring the benefits of high-speed data connectivity to the majority of the world’s population”.

“This deal, along with our recently announced services and LTE agreements, demonstrates the importance of the North American market to Ericsson. Our strength in the region proves to our global customers that we are capable of continuing to provide the best equipment and services, in a scaleable and efficient way,” said Vestberg.

In terms of sales, North America will now be Ericsson’s largest region.According to Angel Ruiz, head of Ericsson’s North American operations, the acquisition significantly expands Ericsson’s footprint in North America, particularly as the region is emerging as an early adopter of LTE technology.

Ericsson will enjoy new access to North American CDMA customers and can better support CDMA networks that will transition to LTE, “said Ruiz.

In addition to the talented people Ericsson gains through the combination, it will also benefit from intimate knowledge of Nortel’s CDMA customers and their networks. In turn, these operators gain a stable partner committed to the ongoing evolution of their networks, and the assurance of a seamless transition.

“I look forward to working with the more than 2,500 highly skilled colleagues in North America and China arriving from Nortel,” said Magnus Mandersson, president of Ericsson CDMA Operations. Combined with the transition of employees in the recent Sprint deal, Ericsson now has some 14,000 employees in North America, making it the company’s second largest market based on number of employees.

The acquisition includes the transfer of important CDMA contracts with North American operators including Verizon, Sprint, U.S. Cellular, Bell Canada, Telus and Leap, as well as LTE assets, certain patents and patent licenses relating to CDMA and LTE. Nortel’s customers will also benefit from the continued support of Nortel’s installed CDMA base and the migration path to LTE.

Today’s closing follows the announcement on July 25, 2009, that Ericsson was entering into an asset purchase agreement of USD 1.13 b. for these assets, subject to approval by the United States and Canadian Bankruptcy Courts and the satisfaction of regulatory and other conditions.

The former Nortel staff will be integrated into the Ericsson group over the coming months and the entity will work under the Ericsson brand beginning today.

The results for these operations will be consolidated by Ericsson on a pro-rata basis from the closing date proportionally within segments Networks and Professional Services. The report for the fourth quarter 2009 will be the first accounts including the new entity.

Notes to editors:
A video interview with Hans Vestberg available in our broadcast room on: www.ericsson.com/press/broadcastroom

Ericsson to acquire majority of Nortel’s North American wireless business [July 25, 2009]

Ericsson (NASDAQ:ERIC) has today entered into an asset purchase agreement to acquire the parts of the Carrier Networks division of Nortel relating to CDMA and LTE technology in North America. The purchase is structured as an asset sale at a cash purchase price of USD 1.13 b. on a cash and debt free basis. This announcement follows the completion of the auction process initiated by Nortel, and the transaction is subject to court and customary regulatory approvals.

Ericsson acquires an installed base and a healthy business that provides major operators CDMA technology and support services. In addition, the acquisition strengthens Ericsson’s ability to serve North America’s leading wireless operators in the evolution to LTE. The acquisition significantly expands Ericsson’s footprint in North America, particularly as this region is emerging as an early adopter of LTE technology. The acquisition also provides Nortel’s customers with a strong and reliable supplier for the future, many of which have expressed support for this acquisition.

“Acquiring Nortel’s North American CDMA business allows us to serve this important region better as we build relationships for the future migration to LTE. Furthermore, by adding some 2,500 highly skilled employees, of which about 400 are focused on LTE research and development, Ericsson reinforces and expands a long-term commitment to North America. This deal, along with our recently announced Sprint service agreement, truly positions Ericsson as a leading telecoms supplier in North America,” said Carl-Henric Svanberg, President and CEO of Ericsson.

The agreement includes important CDMA contracts with North American operators such as Verizon, Sprint, U.S. Cellular, Bell Canada and Leap, as well as LTE assets, certain patents and patent licenses relating to CDMA and LTE. Nortel’s customers will also benefit from the continued support of Nortel’s installed CDMA base and the migration path to LTE.

Nortel’s North American CDMA operations generated approximately USD 2.0 b. in 2008, with robust profitability from a good product mix, which includes a significant amount of services. Going forward, research and development costs are expected to be relatively low in CDMA compared with other technologies.

Ericsson’s North American business generated SEK 17.9 (USD 2.7) b. of sales in 2008, mainly from GSM and WCDMA equipment and associated services. When coupled with the recently announced Sprint services agreement, this acquisition makes North America the largest region within Ericsson and encompasses some 14,000 employees.

The robust financial profile of the acquired operations will contribute significant top- and bottom-line additions to Ericsson. The transaction is expected to have a positive effect on Ericsson’s earnings within a year after closing. Magnus Mandersson, presently head of Ericsson Northern Europe, is appointed President of Ericsson CDMA operations, and Richard Lowe, Nortel, is appointed Chief Operating Officer.

“Our two companies share a long-standing commitment to technological excellence and innovation, and we look forward to welcoming the Nortel employees into Ericsson.  We are truly impressed with their continuing outstanding performance during these challenging times,” said Magnus Mandersson, President of Ericsson CDMA operations.

“The agreement with Ericsson provides a strong and stable future for Nortel’s CDMA and LTE business. Customers will enjoy continued strong support from an industry leader as they look to evolve to LTE. Many employees will also have the opportunity to continue their work with Ericsson, bringing their innovation power and creativity to the wireless industry for years to come,” said Richard Lowe, President of Carrier Networks at Nortel.

Consummation of the transaction is subject to approval by the United States and Canadian Bankruptcy Courts and the satisfaction of regulatory and other conditions.

SEB Enskilda is acting as Ericsson’s sole financial advisor in the transaction.

NORTEL NETWORKS CORPORATION 2011 First Quarter Report
(Under Creditor Protection Proceedings as of January 14, 2009 — note 2)

Nortel Networks Corporation

Prior to Nortel’s significant business divestitures, Nortel Networks Corporation (“Nortel” or “NNC”) was a global supplier of end-to-end networking products and solutions serving both service providers and enterprise customers. Nortel’s technologies spanned access and core networks and support multimedia and business-critical applications. Nortel’s networking solutions consisted of hardware, software and services. Nortel designed, developed, engineered, marketed, sold, licensed, installed, serviced and supported these networking solutions worldwide. As further discussed in note 2, Nortel is currently focused on the remaining work under the Creditor Protection Proceedings (as defined in note 2), including the sale of the remaining assets, providing transitional services to the purchasers of Nortel’s businesses and ongoing restructuring matters.

As of March 31, 2011, Nortel has completed the sales of all of its businesses and regarding these businesses only the residual contracts not transferred to the various buyers remain.

Significant Business Divestitures

On June 19, 2009, Nortel announced that it was advancing in discussions with external parties to sell its businesses. To date, Nortel has completed divestitures of all of its businessesincluding:

(i) the sale of substantially all of its Code Division Multiple Access (“CDMA”) business and Long Term Evolution (“LTE”) Access assets to Telefonaktiebolaget LM Ericsson(“Ericsson”);

(ii) the sale of substantially all of the assets of its Enterprise Solutions (“ES”) business globally, including the shares of Nortel Government Solutions Incorporated (“NGS”) and DiamondWare, Ltd., to AvayaInc. (“Avaya”);

(iii) the sale of the assets of its Wireless Networks (“WN”) business associated with the development of Next Generation Packet Core network components to Hitachi, Ltd.;

(iv) the sale of certain portions of its Layer 4-7 data portfolio to RadwareLtd.;

(v) the sale of substantially all of the assets of its Optical Networking and Carrier Ethernet businesses to CienaCorporation (“Ciena”);

(vi) the sale of substantially all of the assets of its Global System for Mobile communications (GSM)/ GSM for Railways (“GSM-R”) business to Ericsson and KapschCarrierCom AG (“Kapsch”);

(vii) the sale of substantially all of the assets of its Carrier VoIP and Application Solutions (“CVAS”) business to GENBANDInc. (now known as GENBAND U.S. LLC (“GENBAND”));

(viii) the sale of NNL’s 50% plus 1 share interest in LG-Nortel Co. Ltd. (“LGN”), its Korean joint venture with LG Electronics, Inc. (“LGE”), to Ericsson;

(ix) the sale of substantially all of the assets of its global Multi Service Switch (MSS) business to Ericsson; and

(x) the sale of substantially all of the Guangdong-Nortel Telecommunications Equipment Co. Ltd. (“GDNT”), assets to Ericsson Mobile Data Applications Technology Research and Development Guangzhou Company Limited and Ericsson(Guangdong Shunde) Communications Company Limited (collectively, “Ericsson China”).

On April 4, 2011, Nortel announced that it had entered into a stalking horse agreement with Ranger Inc., a wholly owned subsidiary of Google Inc. (“Google’) for the sale of its remaining patents and patent applications.

Business Divestiture Proceeds Received

As of March 31, 2011, of the approximately $3,183 in net proceeds generated through the completed sales of businesses proceeds of approximately $3,171 had been received. These divestiture proceeds include the following approximate amounts:

(a) $1,070 from the sale of substantially all of Nortel’s CDMA business and LTEAccess assets;

(b) $18 from the sale of Nortel’s Layer 4-7 data portfolio;

(c) $10 from the sale of Nortel’s Packet Core Assets;

(d) $932 from the sale of substantially all of the assets of Nortel’s ES business, including the shares of DiamondWare, Ltd. and NGS;

(e) $631 from the sale of substantially all of the assets of Nortel’s Optical Networking and Carrier Ethernet businesses;

(f) $67 from the sale of Nortel’s North American GSM business;

(g) $21 from the sale of Nortel’s GSM business outside of North America (excluding its GSM business in CALA) and its global GSM-R business;

(h) $137 from the sale of substantially all of Nortel’s CVAS business, net of an estimated reduction in purchase price (see below);

(i) $234 from the sale of Nortel’s 50% plus one share interest in LGN;

(j) $47 from the sale of substantially all of Nortel’s MSS business; and

(k) $4 from the sale of various Nortel business assets.

Nortel Commences Comprehensive Business and Financial Restructuring [Jan 14, 2009]

Nortel* Networks Corporation [NYSE/TSX: NT] announced that it, Nortel Networks Limited (“NNL”) and certain of its other Canadian subsidiaries will seek creditor protection under the Companies’ Creditors Arrangement Act (“CCAA”) in Canada. As well, certain of the Company’s U.S. subsidiaries, including Nortel Networks Inc. and Nortel Networks Capital Corporation, have filed voluntary petitions in the United States under Chapter 11 of the U.S. Bankruptcy Code, and certain of the Company’s EMEA** subsidiaries are expected to make consequential filings in Europe. The Company’s normal day-to-day operations are expected to continue without interruption. Nortel remains 100% focused on serving customers worldwide through continued R&D investments and support of its product portfolio to fulfill customer needs.

Nortel made this decision with the unanimous authorization of its Board of Directors after thorough consultation with its advisors and extensive consideration of all other alternatives. This process will allow Nortel to deal decisively with its cost and debt burden, to effectively restructure its operations and to narrow its strategic focusin an effective and timely manner.

The Company commenced a process to turn around and transform Nortel in late 2005, and the Company made important progress on a number of fronts.  However, the global financial crisis and recession have compounded Nortel’s financial challenges and directly impacted its ability to complete this transformationNortel is taking this action now, with a $2.4 billion*** cash position, to preserve its liquidity and fund operations during the restructuring process.

“Nortel must be put on a sound financial footing once and for all,” said Nortel President and CEO Mike Zafirovski.  “These actions are imperative so that Nortel can build on its core strengths and become the highly focused and financially sound leader in the communications industry that its people, technology and customer relationships show it ought to be.  I am confident that the actions we’re announcing today will be the fastest, most effective means to translate our improved operational efficiency, double-digit productivity, focused R&D and technology leadership into long-term success. I want to reaffirm Nortel’s dedication to delivering world-class solutions and services to customers.”

The application under the CCAA will be heard later today by the Ontario Superior Court of Justice. The voluntary petitions under Chapter 11 were filed with the United States Bankruptcy Court for the District of Delaware.  Nortel expects to be in a position shortly to provide an update regarding the consequential filings by certain of its EMEA subsidiaries.

The Company’s affiliates in Asia, including LG Nortel and in the Caribbean and Latin America, as well as the Nortel Government Solutions business, are not included in these proceedings and are expected to continue to operate in the ordinary course.

Nortel To Sell CDMA Business and LTE Assets; Company Advancing in Its Discussions With External Parties To Sell Other Businesses[June 19, 2009]

      • Enters into a Stalking Horse Sale Agreement for CDMA Business and LTE Access Assets with Nokia Siemens Networks for US$650 million
      • Sale of Businesses is Best Path for Nortel to Maximize Value While Preserving Innovation, Customer Relationships and Jobs to Greatest Extent Possible
      • Will Apply to Toronto Stock Exchange to Delist Shares and Expects Creditor Protection Proceedings Will Ultimately Result in Cancellation of Shares

… The agreement with NSN specifies that at least 2,500 employees would have the opportunity to continue with NSN.  This represents a significant portion of the employees associated with the assets being sold.

In addition to announcing this sale agreement, Nortel announced that it is advancing in its discussions with external parties to sell its other businesses. The company will assess other restructuring alternatives for these businesses in the event it is unable to maximize value through sales.

Commenting on the announcements, Nortel President and Chief Executive Officer, Mike Zafirovski said:

“Maximizing the value of our businesses in the face of a consolidating global market has been our most critical priority. We have determined the best way to do this is to find buyers for our businesses who can carry Nortel innovation forward, while preserving employment to the greatest extent possible.  This will ensure Nortel’s strong assets – technologies, customer relationships, and employees – continue to play an important role in driving the future of communications.  The value of Nortel’s wireless business is recognized throughout the industry.  The agreement we are announcing today is solid proof of that value and represents the best path forward for our other businesses.”

Zafirovski continued: “We also believe this will help provide clarity for our customers and employees. Customers have demonstrated consistent support for our products and services, and we want to ensure they continue to benefit from Nortel’s technology and know-how.  In addition, Nortel’s employees are doing a tremendous job under challenging conditions, stabilizing our business and delivering outstanding service to our customers.  It is important to provide our employees with a clear sense of direction around their future and potential opportunities with the new companies.”

The wireless business is the second largest supplier of CDMA infrastructure in the world.  It does business with three of the five top CDMA operators globally, including Verizon Wireless, which operates the largest wireless voice and data network in the United States.

Commenting on the wireless business announcement, Richard Lowe, President, Carrier Networks added:

“Seeking a strong and stable buyer is the best path forward for our CDMA business and LTE Access assets. If successfully completed, this transaction would give many of our CDMA customers a clear roadmap for the future evolution of their networks and the opportunity to extend their relationship with a long-term partner. Further, we expect that a significant portion of the employees associated with the assets being sold would be able to continue their innovative work.”

Lowe continued, “Nortel has a long track record of wireless innovation which has helped us secure a strong and loyal customer base. Throughout this sale process, our customers will continue to receive the highest quality support for their current networks. If successfully concluded, the buyer would gain access to leading edge technology, know-how, and embedded resources to support this significant customer base.”

Details of Sale Process for CDMA Business and LTE Access Intellectual Property Rights

Nortel will file the stalking horse asset sale agreement with the United States Bankruptcy Court for the District of Delaware along with a motion seeking the establishment of bidding procedures for an auction that allows other qualified bidders to submit higher or otherwise better offers, as required under Section 363 of the U.S. Bankruptcy Code. A similar motion for the approval of the bidding procedures will be filed with the Ontario Superior Court of Justice.

In addition to the bidding process and U.S. and Canadian court approvals, consummation of the CDMA business and LTE Access transaction is subject to the satisfaction of customary and other conditions, including governmental approvals such as in Canada and the United States.  The stalking horse asset sale agreement is also subject to purchase price adjustments under certain circumstances.

Nortel Statement on Wireless Asset Auction [July 22, 2009]

As previously announced, on June 19, 2009, Nortel* [OTC: NRTLQ] entered into a stalking horse sale agreement with Nokia Siemens to sell substantially all of its CDMA business and LTE Access assets, subject to higher or better offers being received. On June 29, 2009, in the U.S., and June 30, 2009, in Canada, the courts established bidding procedures for the auction of these assets. The auction is scheduled to take place on July 24, 2009. Throughout this process, Nortel has made every effort to ensure all who want to participate can, with the goal of achieving the best outcome possible for employees and customers and maximizing value for its stakeholders.

Nortel had been in discussions with RIM regarding a related transaction but those discussions are currently on hold. Since the approval of the bidding procedures, Nortel has engaged with a number of potential bidders regarding the CDMA and LTE assets, including RIM.  Other parties moved expeditiously to comply with the court approved procedures to become qualified bidders, and RIM did not object to the approval of these procedures during the court process. It was not until  July 15 that  RIM submitted a letter to Nortel asking to be a qualified bidder and, since that time, Nortel has diligently attempted to work with RIM on acceptable confidentiality terms relating to Nortel’s valuable intellectual property assets. RIM has refused, however, to comply with the court approved procedures.

In order to participate in the court-approved bidding process, a qualified bidder is required to execute a standard confidentiality agreement. The agreement contains a common “standstill” provision that allows Nortel to ensure it is directly involved in any future negotiations on the sale of its assets. The standstill provision does not preclude future offers by a bidder to acquire assets consistent with any processes established by Nortel or the courts. Confidentiality agreements are a standard part of the auction bidding process and are designed to help run a fair process and protect a company’s confidential information, such as its intellectual property.  All qualified bidders are subject to confidentiality agreements.

Nortel, the Canadian Monitor, the U.S. Unsecured Creditors’ Committee and the Ad Hoc Bondholder Group have reviewed the circumstances related to RIM and have concluded that all bidders must comply with the bidding rules in order to maintain the integrity of the court-approved process. Consistent with that process, the auction will commence as planned on Friday, July 24, 2009.

Nortel Selects Ericsson as Successful Bidder For CDMA Business and LTE Access Assets [July 25, 2009]

  • Enters into Sale Agreement for CDMA Business and LTE Access Assets with Ericsson for US$1.13 Billion
  • A Minimum of 2,500 Nortel Employees will be Offered the Opportunity to Continue their Work at Ericsson
  • Canadian and U.S. Court Approvals of the Sale will be Sought at a Joint Hearing on July 28

TORONTO – Nortel* Networks Corporation [OTC: NRTLQ] announced today that it, its principal operating subsidiary Nortel Networks Limited, and certain of its other subsidiaries including Nortel Networks Inc.,  have concluded a successful auction of substantially all of Nortel’s CDMA Business and LTE Access assets. Telefonaktiebolaget LM Ericsson (“Ericsson”) has emerged as the winning bidderwith a purchase price of US$1.13 billion. The bid is subject to court approvals in the U.S. and Canada as well as regulatory and other customary closing conditions and certain post-closing purchase price adjustments.

If approved by the courts, Ericsson will purchase Nortel’s CDMA business which is the second largest supplier of CDMA infrastructure in the world, and substantially all of Nortel’s LTE Access assets giving it a strong technology position in next generation wireless networks. Also as part of this agreement, a minimum of 2,500 Nortel employees supporting the CDMA and LTE Access business will receive offers of employment from Ericsson.

Commenting on the announcement, Nortel President and Chief Executive Officer, Mike Zafirovski said:

“The anticipated sale of our CDMA business and LTE Access assets to Ericsson for $1.13 billion represents a very positive prospect for our customers who will be able to continue their relationships with a long term partner; for employees who will have new opportunities at Ericsson and for many of our other stakeholders. I want to especially thank our customers for their tremendous support during the process, which contributed to such a positive outcome.”

“Nortel remains focused on finding the right buyers for our other businesses while continuing to maintain excellent customer service levels. We are determined to maximize value while preserving innovation platforms, customer relationships and jobs to the greatest extent possible. With today’s agreement and through the anticipated sales of the Company’s other businesses, Nortel will leave its mark on the industry for decades to come.”

Commenting on the sale, Richard Lowe, President of Carrier Networks at Nortel, said:

“The outcome of today’s auction underscores the value the industry places on Nortel’s CDMA business and LTE Access assets, which include a strong customer base and world-class operations. Nortel’s extremely talented and committed employees have been an integral part of our success in wireless and we are very pleased that so many of them will have the opportunity to continue their innovative work with Ericsson.”

Carl-Henric Svanberg, President and CEO of Ericsson said:

“The agreement between Nortel and Ericsson brings together leading-edge wireless innovation from two of the world’s top telecommunications suppliers. We at Ericsson look forward to integrating Nortel’s products and talented employees into our business and realizing the full potential of our combined strengths.  Ericsson is committed to meeting the needs of our new CDMA customers today and bringing the next generation of mobile broadband to the world with LTE.”

While today’s auction is a significant step in the overall sale process, it is not the final step. Nortel will work diligently with Ericsson to close the sale later this year. Nortel will seek Canadian and U.S. court approvals of the proposed sale agreement at a joint hearing on July 28, 2009.

As previously announced in the Company’s June 19 and July 20, 2009 press releases, the Company does not expect that its common shareholders or the preferred shareholders of Nortel Networks Limited will receive any value from the creditor protection proceedings and expects that the proceedings will result in the cancellation of these equity interests

IV. Nokia Siemens Networks (NSN)

Nokia Siemens Productivity Trails Ericsson’s [July 15, 2011]

Nokia Siemens Networks, which this week ended talks to sell a stake to buyout firms, needs to cut jobs to gain the option of independence as competition with rivals including Huawei Technologies Co. intensifies.

The phone equipment venture between Nokia Oyj (NOK1V) and Siemens AG (SIE) generated sales of about $254,000 per employee last year, 19 percent less than larger rival Ericsson AB, based on numbers from the companies’ financial reports. The figure for both manufacturers is sinking as selling prices for equipment such as base stations and packet-switching networks decline.

Nokia Siemens said this week that it plans to improve its competitiveness “as a standalone entity” while announcing the end of talks over a stake sale. The Espoo, Finland-based venture, which has been unprofitable for all but one quarter since it started in April 2007, has increased its headcount to about 73,000 from about 60,000 after additions for outsourcing and the acquisition of a Motorola Solutions Inc. unit. In Germany alone, Nokia Siemens has almost 10,000 workers.

Nokia said July 12 that it’s open to other ownership options for the 50-50 venture, without elaborating. … Nokia, which has more shared interest with Nokia Siemens since both sell to phone companies, is paring down assets that aren’t essential to its main devices product lines. …

The joint venture has lost 3.35 billion euros from operations, restructuring, and impairment charges for Siemens since it was formed. Siemens Chief Financial Officer Joe Kaeser has repeatedly said that telecommunications is no longer a core business for the company.

Nokia Siemens and Ericsson have focused on wireless network equipment such as base stations and core networks and have expanded in software and services to a greater extent than competitors Alcatel-Lucent SA, Huawei and ZTE Corp. (000063) Nokia Siemens gets about half its revenue from services, including running entire networks remotely from India and Portugal. Ericsson counts about 40 percent of its revenue as services.

Nokia Siemens had 20.4 percent of the wireless equipment market in the first quarter, up from 18.2 percent a year earlier, according to Redwood Shores, California-based researcher Dell’Oro Group. Huawei was almost tied with Nokia Siemens at 20.3 percent and Ericsson had 34.5 percent. Alcatel- Lucent’s share was 13.7 percent.

Nokia Siemens announced in November 2009 that it would eliminate between 7 percent and 9 percent of the 64,000 positions it had at the time. The aim was to cut 500 million euros in annual costs by the end of this year. It has reported more than 1.05 billion euros in operating losses since the job cuts announcement.

“They need to remove the question mark around the ownership structure,” Sylvain Fabre, an analyst at Stamford, Connecticut-based Gartner Inc., said in a phone interview. “The first thing you learn in business school is you never do 50-50, you do at least 51-49. Until you really know who’s in charge you don’t really know what direction is ultimately imposed in the company.”

Nokia Siemens Networks completes acquisition of certain wireless network infrastructure assets of Motorola Solutions [April 29, 2011]

  • Pays US $975 million in cash
  • Approximately 6900 employees will transfer to Nokia Siemens Networks
  • Takes on responsibility for 50 operator customers in 52 countries

Nokia Siemens Networks and Motorola Solutions, Inc. (NYSE: MSI) today jointly announced that Nokia Siemens Networks has completed its acquisition of Motorola Solutions’ Networks assets paying US $975 million in cash. As of April 30 2011, responsibility for supporting customers of Motorola Solutions’ GSM, CDMA, WCDMA, WiMAX and LTE products and services transfers to Nokia Siemens Networks.

“The people, customers and technology we’ve acquired greatly complement our existing business by taking us into new markets and broadening our market share,” said Rajeev Suri, chief executive officer, Nokia Siemens Networks. “Our combined knowledge and experience will provide our newly expanded customer base with the means to grow by providing greater value to their subscribers.”

“Motorola Solutions is pleased to complete this transaction to combine our Networks team with an industry leader,” said Greg Brown, president and chief executive officer, Motorola Solutions. “This is great news for our customers, our investors and our people and will allow Motorola Solutions to further sharpen our strategic focus on providing mission-critical solutions for our government and enterprise customers.”

The acquisition strengthens Nokia Siemens Networks’ position in key regions, particularly North America and Japan, as well as with some of the world’s major service providers. Based on revenue, the addition of Motorola Solutions’ Networks assets makes Nokia Siemens Networks the third largest wireless infrastructure vendor in the United States and the leading non-Japanese wireless vendor in Japan. In addition, the acquisition reinforces Nokia Siemens Networks’ position as the world’s second largest wireless infrastructure and services provider.

As part of the deal, responsibility for supporting 50 operators across 52 countries, as well as approximately 6900 employees, will transfer to Nokia Siemens Networks. In addition, Nokia Siemens Networks is acquiring a number of research and development facilities including sites in the United States, China, Russia, India and the UK.

[Nokia Siemens Networks to Acquire Certain Wireless Network Infrastructure Assets of Motorola for US $1.2 Billion [July 19, 2010]

  • Transaction expected to significantly strengthen Nokia Siemens Networks’ presence globally, particularly in the United States and Japan.
  • Nokia Siemens Networks targeting to gain incumbent relationships with more than 50 operators and strengthen relationships with others.
  • Acquisition to enhance position of Nokia Siemens Networks in key wireless technologies; will give company large global footprint in CDMA.
  • Motorola retains the iDEN business, substantially all the patents related to its wireless network infrastructure business, and other selected assets.
  • The companies expect to complete closing activities by the end of 2010.

… As part of the transaction, Nokia Siemens Networks expects to gain incumbent relationships with more than 50 operators and to strengthen its position with China Mobile, Clearwire, KDDI, Sprint, Verizon Wireless and Vodafone. …

Motorola’s networks infrastructure business provides products and services for wireless networks, including GSM, CDMA, WCDMA, WiMAX and LTE. This business is a market leader in WiMAX, with 41 contracts in 21 countries; has a strong global footprint in CDMA with 30 active networks in 22 countries; and a robust GSM installed base, with more than 80 active networks in 66 countries; and excellent traction with LTE early adopters. …]

Nokia Siemens Networks to participate in large scale China TD-LTE trial [March 25, 2011]

Provides TD-LTE network, OSS, services for large-scale field trial in Hangzhou

With the approval of the Ministry of Industry and Information Technology of the People’s Republic of China (MIIT), Nokia Siemens Networks has become one of the first telecommunications equipment vendors to participate in the large-scale TD-LTE trial with China Mobile. Nokia Siemens Networks will offer its commercial 2.3GHz/2.6GHz TD-LTE equipment, professional services and management software to conduct the major field trial in Hangzhou.

Nokia Siemens Networks has already completed both 2.3 and 2.6GHz outdoor, and 2.3GHz indoor, single-system testing with TD-LTE. The company is one of the first global vendors to be selected for the large-scale TD-LTE field trials with China Mobile. In addition, Nokia Siemens Networks has conducted interoperability tests of its TD-LTE equipment with a number of TD-LTE devices of major suppliers. As stated by MIIT, Nokia Siemens Networks will cooperate with China Mobile to accelerate network construction, equipment installation, and network optimization according to the overall requirements and plan of the large-scale TD-LTE trial in Hangzou.

Nokia Siemens Networks has built a complete TD-LTE business in China, integrating procurement, production, testing and maintenance with its Hangzhou R&D Center at the center of this value chain,” said Markus Borchert, head of Greater China customer operations at Nokia Siemens Networks. “The approval by MIIT confirms our long-term support for TD-LTE and our leadership driving the global ecosystem for unpaired frequency bands.”

In addition to its market-leading Single RAN Advanced radio equipment, Nokia Siemens Networks will provide network planning and network optimization services to ensure sustained network quality and performance. Configuration, monitoring and optimization for this project will be based on the company’s Network Management System, NetAct.

Technology talk: Accelerating mobile broadband with TD-LTE [NSN’s Unite magazine, Feb 11, 2011]

Enabling communications service providers (CSP) to take advantage of unpaired spectrum to deliver high speed mobile broadband, Time Division Duplex (TDD) LTE, or TD-LTE, became a global technology in 2010. Important milestones included the first TD-LTE call in India Broadband Wireless spectrum at 2.3 GHz and the success of TD-LTE tests by China’s Ministry of Industry and Information Technology(MIIT).

TD-LTE is a natural evolution of TD-SCDMA, and WiMAX networks and takes care of interworking, coexistence and roaming between different technologies. TD-LTE also helps WiMAX CSPs to enjoy the economies of scale, roaming and network sharing benefits of the large 3GPP ecosystem, therefore making it important for WiMAX and TD-LTE to co-exist.

Leading manufacturers are developing TD-LTE terminals, while chipset and platform vendors are announcing availability of multi-mode LTE (FDD and TDD) offerings to ensure CSP service roll-outs with one common technology platform. Nokia Siemens Networks has made significant contributions to TD-LTE development. The company’s ‘TD-LTE Open Labs’ facility in Hangzhou, China is fostering and accelerating developments by enabling vendors to undertake end-to-end testing and validate their solutions before delivery.

Nokia Siemens Networks readies TD-LTE for India [Oct 19, 2010]

First TD-LTE call on country’s Broadband Wireless Access spectrum*

Nokia Siemens Networks is the first company to successfully demonstrate the Time Division Duplex version of LTE (TD-LTE)** using broadband wireless access (BWA) spectrum in India. The first video call was made by Gurdeep Singh, chief operating officer of Aircel. The call was conducted with the 4G mobile technology running on commercial hardware at the Nokia Siemens Networks’ Bengaluru R&D facility. It marks an important milestone moving 2.3 GHz TD-LTE closer to commercial availability.

During the test, Nokia Siemens Networks demonstrated high-definition video streaming and three-way video conferencing. Using interoperable TD-LTE dongles from Samsung, the demo showcased a peak throughput speed of 110 megabits per second (Mbps) and low latency in the range of 10-20 milliseconds.

The end-to-end demonstration was based on Nokia Siemens Networks’ LTE equipment and software. These include the company’s award-winning Flexi Multiradio Base Station and Evolved Packet Core – which comprises Flexi NS (Network Server) and Flexi NG (Network Gateway) – and standard-compliant software.

TD-LTE technology promises enhanced delivery of broadband to laptops on the move and smartphone services, thanks to increased data rates, reduced latency and its scalable all-IP flat network architecture. This technology ensures high-speed mobile broadband connectivity and a superior performance from mobile applications across a wide range of devices.

“Today’s demo reiterates our leadership and commitment to getting TD-LTE into new market. It also demonstrates our regional and global progress in this area,” said Juha Lappalainen, head of mobile broadband sales at Nokia Siemens Networks. “Our TD-LTE trials across the globe prove our capability in driving rapid commercial TD-LTE network deployments aimed at facilitating a new wave of advanced mobile broadband services.”

“This is an important milestone in building the TD-LTE ecosystem in India,” added Urs Pennanen, head of India region, Nokia Siemens Networks. “TD-LTE over the Broadband Wireless Access spectrum is important for the country, as it will allow operators to offer voice and data to the masses. We are ready to collaborate with partners to accelerate our progress toward a comprehensive deployment of TD-LTE in India.”

Nokia Siemens Networks is at the forefront of TD-LTE development and commercialization, actively working with telecom operators and device manufacturers. The company is fully prepared and committed to support the LTE activities and is in talks with many operators globally. It is actively participating in tests and trials for both Frequency Division Duplex LTE (FD-LTE) and TD-LTE technologies, while working with telecom operators and device manufacturers to strengthen the ecosystem. Earlier this year, Nokia Siemens Networks successfully demonstrated TD-LTE trials during Shanghai World Expo, and TD-LTE data calls at the company’s R&D center in Hangzhou (China) and at Taiwan’s National Chiao Tung University.

Independent labs confirm Nokia Siemens Networks TD-LTE leadership [Aug 13, 2010]

  • Meets full TD-LTE test specifications defined by China’s Ministry of Industry and Information Technology
  • Conducts world’s first high-definition TD-LTE video call including handover with a Samsung TD-LTE device

Nokia Siemens Networks has proven its leading role in advancing TD-LTE as it met the complete TD-LTE test specifications defined by China’s Ministry of Industry and Information Technology (MIIT).The successful completion of the trial in the 2.3GHz band at the MIIT lab in Beijing, China, marks an important milestone in the commercialization of TD-LTE. After the test, Nokia Siemens Networks also achieved the world’s first high-definition TD-LTE video call, including handover, with a Samsung TD-LTE device.

The high-definition video call demoshowcased interoperability between Nokia Siemens Networks’ LTE infrastructure and Samsung’s TD-LTE USB dongle, and marks a definitive step toward ensuring early availability of a functioning TD-LTE ecosystem for commercial deployments.

“We’ve achieved excellent results from this test and are happy to partner with Nokia Siemens Networks in driving the TD-LTE ecosystem further,” said Mr. Tong Wang, president of Beijing Samsung Telecom R&D Center. “Commercial readiness of devices is a key indicator for the success of a new technology and the current test results show that we are now well prepared for TD-LTE.”

“Meeting TD-LTE test specifications defined by MIIT and achieving the first high-definition video call with handover, are key milestones in our list of achievements, added Paul Pan, head of Network Systems, Greater China Region, Nokia Siemens Networks. “We will continue to collaborate with partners to accelerate our progress toward a comprehensive deployment of TD-LTE.”

Nokia Siemens Networks is at the forefront of TD-LTE development and commercialization, actively working with telecom operators and device manufacturers. The company recently announced the first TD-LTE interoperability data call with a prototype TD-LTE USB dongle from Samsung and the first TD-LTE video call between Shanghai and Taipei.

Nokia Siemens Networks sets up industry’s first TD-LTE Open Lab [April 16, 2010]

Provides smart phone and terminal testing facility to accelerate TD-LTE ecosystem

Nokia Siemens Networks has inaugurated a TD-LTE Open Lab at its Hangzhou R&D facility. The first such lab in the industry aims to provide practical know-how that will help telecom operators and TD-LTE device manufacturers across the globe deploy commercial TD-LTE quicker. Major TD-LTE smartphone and terminal manufacturers can use the lab to test the interoperability and functionality of their devices across TD-LTE networks.

“The development of terminals and devices has always been a bottleneck in the roll-out of new mobile technology,” said Mr. Sha Yuejia, vice president of China Mobile. “We are thus more than happy to see that Nokia Siemens Networks has established a cutting-edge terminal testing environment, an initiative that we support wholeheartedly. After all, a healthy ecosystem needs efforts from all stakeholders.”

Nokia Siemens Networks’ Open Lab will provide an end-to-end testing environment for verifying the compatibility of terminals and devices with the company’s TD-LTE network products and solutions. The lab will also provide consultancy and testing services to device manufacturers. Nokia Siemens Networks’ TD-LTE R&D center in Hangzhou is fully integrated into the company’s global network of LTE Centers of Competence. It is an ideal location for the new Open Lab, as the company can use the R&D center’s existing competencies, resources and assets to speed deployment of TD-LTE.

“This initiative will facilitate the holistic development of TD-LTE technology,” said Wang Tong, chief technology officer of Samsung China. “We are working hard to build-up the TD-LTE ecosystem. TD-LTE Open Lab will provide us with a common testing platform to prove the interoperability of our terminals with its networks before commercial rollout.”

“We are at the forefront of driving TD-LTE deployments, as we were the first to conduct a call fully compliant with the 3GPP Release 8 (March 09 baseline) standard using commercial network hardware,” said Zhang Zhiqiang, president of the Greater China Region at Nokia Siemens Networks. “The TD-LTE Open Lab is a key cooperation initiative that will help us align our solutions with major user equipment vendors and ensure that our networks fully interoperate with their devices for the benefit of all TD-LTE operators.”

While Nokia Siemens Networks will focus on a quick ramp-up of the Open Lab by leveraging existing R&D teams and assets, it is also putting in place an expert pool of interoperability testing (IOT) professionals to ensure optimum quality standards and define a long-term strategy for the lab.

Providing a live TD-LTE experience to operators in the region, Nokia Siemens Networks also recently kicked off a nationwide TD-LTE road show in China. Beginning in Beijing, the road show will cover more than ten provinces in three months, demonstrating the most advanced TD-LTE technology and applications.

Nokia Siemens Networks drives development of TD-LTE [March 4, 2009]

Following the industry’s first lab based TD-LTE demonstrations last year R&D in Hangzhou is being ramped up to support its commercial roll-out

Nokia Siemens Networks is gearing up for the launch of next generation Time Division Duplex Long Term Evolution (TD-LTE) technology in China. Following the industry’s first successful lab demonstrations conducted with leading operators in Germany last year, the company has further expanded its team in Hangzhou, China, to support the commercial roll out of TD-LTE.

Nokia Siemens Networks’ Hangzhou R&D center plays a pivotal role for the company. As well as driving innovation across GSM/EDGE, WCDMA/HSPA, LTE, I- HSPA and WiMAX technologies, Hangzhou’s 1,000 strong R&D team is being expanded to focus on supporting China’s home-grown TD-LTE technology through 2009. The company has been cooperating with leading operators in China and Europe to evaluate the performance of TD-LTE technology under various deployment situations and will continue this work with more advanced over the air tests and finally field trials in a pre-commercial multi-cell test network.

The TD-LTE first phase tests were completed in November last year and demonstrated the high throughput performance, in particular peak data rates and low latencies, of TD-LTE under various channel conditions as well as the robustness of the technology. The tests confirm that users will truly enjoy the superior mobile broadband experience promised by the LTE standard even in unpaired frequency spectrum.

“TD-LTE can catapult China to advanced next generation mobile broadband services and we are committed to putting significant resources to support its development and deployment,” said Marc Rouanne, head of the company’s Radio Access business. “In addition to the significant boost in ground resources, our fast rollout service capability and experiences in the region will help us in delivering cost efficient and high quality next generation mobile broadband networks to the benefit of operators and end users.”

Nokia Siemens Networks has played a pioneering role in China’s home grown technology standard TD-SCDMA and has developed a well proven network solution for this technology. In addition, it provides comprehensive delivery capability in related network planning, construction and optimization projects. The company’s expertise in TDD technology gained through deploying credible and competitive TD-SCDMA solutions in China, coupled with our global leadership in LTE puts us in an extremely advantageous position in the region.

A forerunner in LTE, Nokia Siemens Networks has made a long-term commitment through significant financial and R&D investment, across both Frequency Division Duplex (FDD) and Time Division Duplex (TDD) mode of operations. The company was the first to demonstrate LTE technology with data speeds in the 160Mb/s range as well as a successful handover between LTE and HSPA as early as 2006. The company continued breaking records in 2007 by demonstrating multi-user field trials in urban environments with peak data rates of 173 Mb/s. Launched in February 2008, Nokia Siemens Networks’ LTE capable Flexi base station is already shipping since Q3 2008, far ahead of competition. It is also one of the key contributors for standardization of both LTE modes in 3GPP.

V. Alcatel-Lucent (with special emphasis on lightRadio and related QorIQ Qonverge SoCs from Freescale quite essential for that)

China Mobile selects Alcatel-Lucent for TD-LTE trial network at World Expo 2010 [Nov 18, 2009]

Alcatel-Lucent (Euronext and NYSE: ALU) today announced that it has been selected by China Mobile to deploy a TD-LTE* trial network at the occasion of the World Expo 2010 in Shanghai (May 1 to Oct 31, 2010). The deployment will be the first in the world and follows Alcatel-Lucent’s first TD-LTE call on a third party terminal achieved earlier this year. The agreement was signed through Alcatel-Lucent Shanghai Bell, Alcatel-Lucent’s Chinese flagship company.

Alcatel-Lucent‘s industry-leading TD-LTE platform will provide indoor coverage for 2 pavilions of World Expo 2010, namely the Theme pavilion and the Africa pavilion. Visitors will be able to enjoy advanced mobile services including ultra high speed internet access and HDTV at the exposition. Expected to have 200 participants and 70 million visitors, World Expo 2010 will open on May 1stnext year.

With the explosion of mobile data traffic that is underway today, service providers need to increase their wireless network capacity and to transform toward end-to-end IP networks in order to support a wide array of new revenue generating services while also driving down the operational cost of supporting the growing volume mobile broadband services. These needs are addressed by Alcatel-Lucent’s High Leverage Network™ architecture, which is intended to address the business, technical and operational challenges faced by service providers, enterprises and developers as they create, manage and market new applications. The High Leverage Network supports Alcatel-Lucent’s application enablement vision, which is focused on combining the trusted capabilities of service providers and enterprises with the speed and innovation of the Web to provide both consumers and business users with richer, more trusted and valuable experiences.

“China Mobile’s selection of our TD-LTE solution for this historical event further confirms that Alcatel-Lucent is playing a leading role in the evolution of 3G to 4G and that we are ready to help worldwide operators to take advantage of this technology,” said Olivia Qiu, President of Alcatel-Lucent Shanghai Bell and head of Alcatel-Lucent in East Asia.

LTE is the next evolution in mobile network standards defined by 3GPP (Third Generation Partnership Project) and supports operations in both the paired spectrum and unpaired spectrum. Alcatel-Lucent is a pioneer in the LTE market. It is able to provide common platform for both TDD and FDD spectrum, which creates a truly global ecosystem, and enables all operators to take advantage of a common system and unrivalled economies of scale as they look to provide 4G wireless broadband services to their subscribers.

In February 2009, Alcatel-Lucent announced that it has completed the first data calls – involving terminals from third-party suppliers – using TD-LTE technology, demonstrating Alcatel-Lucent’s commitment to supporting a smooth evolution path to 4G for all service providers.

* TD-LTE: Long Term Evolution (LTE) technology for Time Division Duplex (TDD) spectrum

For more information about Alcatel-Lucent’s LTE solution, please visit: http://www.alcatel-lucent.com/lte

Alcatel-Lucent achieves record speeds on World Expo China 2010 TD-LTE network [Feb 15, 2010]

Alcatel-Lucent (Euronext Paris and NYSE: ALU)today announced it has successfully achieved record speed rates on China Mobile’s TD-LTE (time division duplex – long term evolution) trial network – which is being installed to support the 2010 World Expo in Shanghai. During extensive tests, peak rates of more than 80Mbps downstream were realized by the team from Alcatel-Lucent Shanghai Bell, Alcatel-Lucent’s flagship company in China.The World Expo 2010, which will open on May 1stwith 70 million expected visitors, will provide a unique venue for all countries to demonstrate latest technological advances.

An industry’s first, these TD-LTE peak rates were achieved by using a single 20MHz spectrum band, carrying both the upstream and downstream traffic. And that’s an important differentiator versus previously announced breakthroughs in the LTE-FDD (frequency division duplex) space: the tests on China Mobile’s TD-LTE network show its readiness to cope with very high bandwidth demands as well, all while using half of the spectrum LTE-FDD networks require to accommodate peak throughputs of 100Mbps (downstream).

“These record speed rates on China Mobile’s TD-LTE trial network highlight Alcatel-Lucent’s commitment to providing our customers with an end-to-end LTE solution matching their specific spectrum and timing strategies,”said Romano Valussi, president of Alcatel-Lucent Shanghai Bell and head of Alcatel-Lucent’s China regional business unit. “Visitors to the event will thus be able to enjoy ultra high-speed mobile Internet access and experience the next generation of high-definition multimedia demonstrations. This will stimulate the worldwide adoption of TD-LTE technology, as well as its future commercialization.”

“Following the industry’s first TD-LTE calls performed in February 2009, this new milestone further reinforces Alcatel-Lucent’s ability to make TD-LTE a reality, and once again demonstrates the reliability of Alcatel-Lucent’s LTE solutions,” he added.

The tests were run using Alcatel-Lucent’s end-to-end LTE solution – including eNodeBs (base stations), evolved packet core (EPC) and a range of third-party commercial terminals. Alcatel-Lucent provided its professional services expertise, encompassing network installation and software integration.

This significant milestone comes at the same time as Alcatel-Lucent announcing good progress on the TD-LTE field trial in Shunyi (Beijing)- initiated by China’s Ministry of Industry and Information Technology (MIIT). Using third-party terminals and following a successful completion of all mobile file systems (MFS) tests, Alcatel-Lucent thus further proves the readiness of its end-to-end LTE solution.

LTE is the next evolution in mobile network standards defined by 3GPP (Third Generation Partnership Project) and supports operations in both the paired spectrum and unpaired spectrum. Alcatel-Lucent is a pioneer in the LTE market, having a common platform for both the time-division duplex (TDD) and frequency-division duplex (FDD) spectrums – that enables all operators to take advantage of unrivalled economies of scale as they look to provide 4G wireless services to their subscribers.

About Alcatel-Lucent and LTE
With 40 LTE customer trials secured to date, Alcatel-Lucent is a worldwide leader in LTE. The company is actively engaged in the majority of LTE projects being pursued by tier 1 operators around the globe. To help operators realize their potential, Alcatel-Lucent is offering a unique, pre-integrated, end-to-end LTE solution and a full set of associated professional services. Alcatel-Lucent’s network architecture is based on Alcatel-Lucent unique converged radio access network (RAN) strategy allowing scaling of W-CDMA networks and smooth evolution to LTE.The company also founded external linkthe ng Connect Program, a global initiative to drive the development of an open and diverse ecosystem of LTE device manufacturers, content providers and application partners. Through the ng Connect program and with Alcatel-Lucent’s end-to-end LTE solution, wireless broadband operators benefit from open innovation, pre-integrated solutions, reduce time to market with LTE-enabled services, and the ability to drive new and non-traditional business models.

For more information about Alcatel-Lucent’s end-to-end LTE solution, please visit:http://www.alcatel-lucent.com/lte

Alcatel-Lucent collaborates with Innofidei and ASTRI to complete the first high-definition video call over China Mobile’s TD-LTE network at World Expo [June 2, 2010]

Alcatel-Lucent (Euronext Paris and NYSE: ALU)and China Mobile today announced that they have successfully completed the first high-definition video call over a TD-LTE network at the Shanghai World Expo. Leveraging Alcatel-Lucent’s network infrastructure and systems integration expertise, as well as a TD-LTE USB dongle from Innofidei and ASTRI, World Expo visitors can experience a new class of ultra high-speed mobile services – including fast Internet access, significantly improved FTP upload/download speeds, 3D games and 3D maps.

As one of the key suppliers of China Mobile’s TD-LTE network at the Shanghai World Expo, Alcatel-Lucent is providing indoor broadband mobile coverage in the Theme and the Africa pavilions to the more than 70 million expected visitors. The achievement with Innofidei and ASTRI, both industry-leading TD-LTE terminal chip makers and recognized terminal vendors for China Mobile’s TD-LTE network, results from a series of successful interoperability tests aiming at an acceleration of TD-LTE’s commercialization.

“It is great to see the growth of TD-LTE in China. This achievement demonstrates that the TD-LTE industry chain is maturing, which will help boost the technology’s commercialization and global adoption,” said China Mobile’s TD-LTE EXPO project manager.

“This is a significant milestone for Alcatel-Lucent in the TD-LTE space. The successful interoperability tests, and resulting demonstrations with leading terminal vendors, further demonstrate our commitment to create an open TD-LTE ecosystem,” said Romano Valussi, president of Alcatel-Lucent Shanghai Bell and head of Alcatel-Lucent’s China regional business unit.

“As a major chip maker, Innofidei is actively participating in efforts to promote the TD-LTE industry. We launched our TD-LTE project in 2007, conducting further research with ASTRI. We were proud to see our efforts recognized by being awarded the bid for terminals for China Mobile’s TD-LTE network at the 2010 World Expo in Shanghai,” said Innofidei CEO Dr. Tom Zhang.

“Hong Kong ASTRI is determined to develop key technologies to benefit local and regional high tech industry. The cooperation with Alcatel-Lucent and Innofidei this time further illustrates our technology advance in TD-LTE” said Dr. Cheung Nim-Kwan, CEO of ASTRI.

In November 2009, Alcatel-Lucent was selected by China Mobile to deploy the first TD-LTE network in the world. This February, Alcatel-Lucent achieved record speedsof more than 80 Mbps downstream by using a single 20MHz spectrum band to accommodate both upstream and downstream traffic.

Alcatel-Lucent’s end-to-end LTE solution is a key element of its High Leverage NetworkTM architecture, providing sufficient capacity for the ever-growing data traffic at the lowest cost per bit, all with the intelligence necessary to create new business opportunities for our customers. The company’s end-to-end LTE network solution includes eNodeBs (base stations),its Ultimate Wireless Packet Core, IP/MPLS mobile transport, a comprehensive IMS solution and the ng Connect ecosystem with content and application vendors.

Having been selected to support more than 45 LTE trials around the globe and securing commercial contracts with two of the largest operators in the world, Alcatel-Lucent is a recognized market leader in LTE.

About Innofidei
Founded in Sept 2006 in Beijing Z-Park with operations in Beijing, Silicon Valley and Taipei , Innofidei dedicates itself to provide enabling IC and system solutions for mobile TV broadcast and telecommunication market.  external linkhttp://www.innofidei.com/

About ASTRI
The Hong Kong Applied Science and Technology Research Institute (ASTRI) was founded by the Government of Hong Kong Special Administrative Region in 2000 to enhance technological advances for Hong Kong through applied research.  During the past years, ASTRI has been conducting a spectrum of world-class and customer-focused R&D, and has built teams of excellent researchers, produced a volume of intellectual properties and created real economic impact by transferring technologies to its clients in Hong Kong, the Mainland and the region.    Please visit external linkwww.astri.orgfor more information.

About Alcatel-Lucent and LTE
Having been selected to support 45+ LTE trials around the globe and securing commercial contracts with two of the largest operators in the world, Alcatel-Lucent is a recognized market leader in LTE. To help operators realize their potential, Alcatel-Lucent is offering a unique, pre-integrated, end-to-end LTE network solution and a full set of associated professional services. Alcatel-Lucent’s end-to-end network architecture is pre-integrating Alcatel-Lucent converged radio access network (2G/3G/4G RAN) and an industry-leading IP networking solution encompassing Alcatel-Lucent’s Ultimate Wireless Packet Core, IP/MPLS mobile transport, wireless network guardian, and a comprehensive IMS solution. This network solution allows scaling of GSM/W-CDMA networks and a smooth evolution to LTE. The company also founded the external linkng Connect Program, a global initiative to drive the development of an open and diverse ecosystem of LTE device manufacturers, content providers and application partners. Through the ng Connect Program and with Alcatel-Lucent’s end-to-end LTE solution, wireless broadband operators benefit from open innovation, pre-integrated solutions, reduce time to market with LTE-enabled services, and the ability to drive new and non-traditional business models. For more information about Alcatel-Lucent’s end-to-end LTE solution, please visit: http://www.alcatel-lucent.com/lte

Alcatel-Lucent and China Mobile together with Audi to bring the magic of LTE to the streets of Barcelona [Feb 15, 2011]

Alcatel-Lucent (Euronext Paris and NYSE: ALU) and China Mobile are collaborating to highlight a variety of high-value applications in an Audi A8 automobile supported by mobile network – based on Alcatel-Lucent’s commercially available infrastructure – that supports both flavours of Long Term Evolution (LTE) technology, Time Division Duplex (TDD) and Frequency Division Duplex (FDD), ensuring seamless global coverage.

In cooperation with Audi and application partners LiveCast and Vidyo, Alcatel-Lucent is bringing the magic of LTE to the streets of Barcelona with drive demos in a brand new LTE-driven Audi A8 cruising the neighbourhood around the Arts Hotel. From February 14th to 16th(9am-11:30am, 14pm-19pm), visitors will enjoy some exciting in-car services such as advanced street maps and navigation, video conferencing , video streaming, virtual desktop and music downloads.

“We are delivering a really cool driving experience in a really cool car using cutting-edge technology,” said Ken Wirth, President, 4G LTE Wireless Networks, Alcatel-Lucent. “What we are demonstrating is the ability of Alcatel-Lucent’s LTE Solutions to support the same kinds of advanced applications in both TDD and FDD spectrum, ensuring that all members of the LTE ecosystem can participate in the broader global value chain.”

The two modes of LTE share commonalities and are quite similar from an ecosystem perspective. The demonstrations also show the commercial readiness of Alcatel-Lucent’s integrated end-to-end LTE TDD and FDD solutions. This project also highlights the close collaboration between Alcatel-Lucent and China Mobile around the development of LTE; Alcatel-Lucent supported China Mobile’s TD-LTE trial network at World Expo in Shanghai last year and at public demonstrations of LTE at Mobile Asia Congress in November.

Alcatel-Lucent is supporting applications across both modes of LTE that are being deployed around the world in order to assist operators in leveraging LTE technology to develop a new range of connected devices and applications, including automobiles, to create new revenue opportunities and unleash new business models.  Through the ng Connect Program – which was launched by Alcatel-Lucent two years ago at Mobile World Congress – Alcatel-Lucent has pioneered the concept of the LTE in-vehicle connectivity and multi-industry ecosystem development. This year Alcatel-Lucent has worked directly with Audi to bring LTE enabled automobiles one step closer to commercial reality.

“Audi will make LTE technology a feature available in their commercial production line cars” explained Michael Dick, Board Member for technical development at AUDI AG, at the presentation of the experimental vehicle.

The drive demonstrations rely on Alcatel-Lucent’s end-to-end LTE converged solution comprising of common antennas, Alcatel-Lucent’s “zero footprint” base station (eNode B) and a Wireless Packet Core. In collaboration with Audi and application partners LiveCast and Vidyo we are showcasing how the network and applications like navigation, video streaming, virtual desktop, video conferencing, live broadcast and music downloads are integrated by our end-to-end LTE solution with both TDD and FDD coverage.

Vidyo is providing its revolutionary software-based telepresence technology for high-quality video conferencing demonstrations via TD-LTE, between passengers in the Audi A8 and people at the Mobile World Congress exhibit hall.

LiveCast’s industry proven live mobile video platform for enterprise is enabling HD quality video streaming with integrated telemetry and GPS location data, via TD-LTE from passengers in the Audi A8 to its LiveCast Command Center application at Mobile World Congress exhibit hall.

More applications will also be showcased in the Alcatel-Lucent’s booth at the Fira in Hall 6 and in the Apps Planet Hall 7 # 7A96 to highlight the commercial readiness of LTE and the transformation it will bring to many dimensions of our lives.

Having been selected so far by twelve customers for commercial deployments — including two of the world’s largest service providers — and being involved in over 60 trials worldwide –- including thirteen LTE TDD trials in seven countries — Alcatel-Lucent has established a strong leadership position in LTE.

More information about Alcatel-Lucent and LTE: http://www.alcatel-lucent.com/lte

Alcatel-Lucent and Sequans collaborate on LTE solutions [Feb 15, 2010]

Alcatel-Lucent (Euronext Paris and NYSE: ALU) and Sequans today announcedtheir collaboration on LTE solutions for operators of TD-LTE networks in Asia and Europe who are planning to offer services at 2.6 GHz. The first result of this collaboration in response to this significant demand will be a Sequans 2.6 GHz USB dongle to be used in operator trials in 2010.

“Through this partnership, we are exhibiting our commitment to creating a vibrant LTE ecosystem and to supporting operator goals of demonstrating the value of TD-LTE in delivering advanced services to end users,” said Georges Karam, Sequans CEO.  “Alcatel-Lucent is an LTE technology leader, already actively involved in some of the most significant LTE deployment projects announced to date and we are pleased to work with them.”

Alcatel-Lucent was previously selected by China Mobile to deploy China Mobile’s demonstration network at the World Expo 2010 in Shanghai, beginning of May, using Sequans TD-LTE chips and USB dongles at 2.3 GHz.

“We are committed to working closely with operators in Asia and Europe to support their LTE strategies,” said Doug Wolff, vice president, Alcatel-Lucent’s 4G/LTE Solutions. “Our collaboration with Sequans, a truly innovative and accomplished 4G semiconductor supplier, will yield valuable TD-LTE solutions”.

About Alcatel-Lucent and LTE
With 40 LTE customer trials secured to date, Alcatel-Lucent is a worldwide leader in LTE. The company is actively engaged in the majority of LTE projects being pursued by tier 1 operators around the globe. To help operators realize their potential, Alcatel-Lucent is offering a unique, pre-integrated, end-to-end LTE solution and a full set of associated professional services. Alcatel-Lucent’s network architecture is based on Alcatel-Lucent unique converged radio access network (RAN) strategy allowing scaling of W-CDMA networks and smooth evolution to LTE.The company also founded external linkthe ng Connect Program, a global initiative to drive the development of an open and diverse ecosystem of LTE device manufacturers, content providers and application partners. Through the ng Connect program and with Alcatel-Lucent’s end-to-end LTE solution, wireless broadband operators benefit from open innovation, pre-integrated solutions, reduce time to market with LTE-enabled services, and the ability to drive new and non-traditional business models. For more information about Alcatel-Lucent’s end-to-end LTE solution, please visit:http://www.alcatel-lucent.com/lte

About SequansCommunications
Sequans Communications is a 4G chipmaker, supplying LTE and WiMAX chips to equipment manufacturers and mobile operators worldwide.  Founded in 2004 to address the WiMAX market where it is now a global leader, Sequans has recently expanded to address the LTE market.  Sequans chips are inside the world’s leading WiMAX networks and will soon be inside the world’s leading LTE networks.  Sequans is based in Paris, with additional offices throughout the world, including USA, United Kingdom, Israel, Japan, Hong Kong, Singapore, and Taiwan. external linkwww.sequans.com

Alcatel-Lucent Asia Pacific President talks about Q1 2011 [May 20, 2011]

Alcatel-Lucent Asia Pacific President Rajeev Singh-Molares shares his perspectives about Q1 2011 in the Asia Pacific region. Business in the region grew relative to the same quarter last year. China and Japan were strong. Operators are aggressively rolling out LTE networks spurred by upticks in smartphone and tablet use. The company will collaborate with China Mobile on next-generation network development, leveraging cloud RAN and lightRadio. A study by Bell Labs and World Economic Forum reveals it’s possible to accelerate GDP growth by an additional 40% when combining applications and services with mobile ubiquity.

Alcatel-Lucent Columbus – Where LTE Readiness Becomes LTE Reality [March 2, 2011]

In 2010, Alcatel-Lucent deployed more than 60,000 base stations to North American customers. This video explains how our LTE Readiness Methods and Procedures team and our Remote Integration Testing Center (RITC) work together to deploy LTE technologies for our customers. The video also explains the concept of the RITC, its advantages for the customer and its track record of success. In addition, the video discusses the deep LTE expertise found in the Methods and Procedures team along with the many things it does to support the RITC.

lightRadio: Alcatel-Lucent at “Best Practice Live” virtual conference [July 5, 2011]

lightRadioTM is a disruptive Wireless Architecture that enables operators the opportunity to develop next generation converged 2G/3G/LTE Radio Networks. Valérie Layan – VP Wireless Solutions EMEA at Alcatel-Lucent outlined how this unique solution offers a dramatic new way of building networks that will enable Macro and Small Cell integration, offer Opex savings of more than 50% compared to Classic BTS design and set the course for Wireless & Wireline convergence.

lightRadio Press Coverage

LIGHTRADIO CONNECTS THE WORLD [June 15, 2011]

The world’s first long-distance, high-quality mobile video-call using lightRadio™ – a breakthrough system pioneered by Alcatel-Lucent (Euronext Paris and NYSE: ALU) to transform the economics and efficiency of mobile telephony– has successfully taken place from the historic desk of Alexander Graham Bell.

Industry executives, technology leaders and analysts witnessed the inaugural lightRadio video call made from the headquarters of Bell Labs, the innovation engine of Alcatel-Lucent and now home to Graham Bell’s desk, from which he made the first-ever long-distance phone call.

Chris Lewis, Group Vice President of industry analysts IDC, hosted the call from Bell Labs in Murray Hill, New Jersey, connecting with Ben Verwaayen, Chief Executive of Alcatel-Lucent in Paris, and delegates at a business conference in Miami.

lightRadio is the name of a family of technologies which are set to transform mobile communications, improving the quality of network services for consumers while dramatically reducing the size, carbon footprint and energy consumption of mobile base stations.

After participating in the call, Ben Verwaayen, said: “We have taken lightRadio from the drawing-board to a fully working system, creating an entirely new system to connect customers around the world.”

The launch of lightRadio will help address exploding demand for mobile broadband services and increasing global consumption of wireless content. This has been fuelled by the adoption of smartphones and the popularity of video applications, social networking and mobile gaming services– all requiring wireless service providers to provide greater speed and capacity everywhere.

Network operators such as France Telecom/Orange, Telefonica and China Mobile are now engaged with Alcatel-Lucent in co-creating the market implementation of lightRadio. The system is expected to deliver significant operational savings for carriers and infrastructure owners by marking an end to the existing system of complex base stations and large cell towers.

This week’s inaugural call demonstrates lightRadio’s ability to handle high levels of data, meeting demand from customers increasingly using mobile video on Internet-networks. Among breakthroughs promised by the system, it will reduce mobile network energy consumption by 50% – compared with current equipment; enable roll-out of mobile broadband services to new marketsusing sustainable-power sources; and deliver major savings for operators.

Alcatel-Lucent predicts that lightRadio will help cut the cost of mobile infrastructure site, energy consumption, operations and maintenance. Bell Labs estimates that the total cost of ownership of mobile networks, the sum spent by mobile operators on access systems, reached 150 billion Euros in 2010.

More information about Alcatel-Lucent’s lightRadio portfolio can found online at http://www.alcatel-lucent.com/lightradio.

China Mobile and Alcatel-Lucent partner to develop next-generation RAN [Feb 15, 2011]

Alcatel-Lucent today announced it has signed a Memorandum of Understanding (MOU) with China Mobile, the world’s largest mobile operator and a leader in TD-SCDMA and TD-LTE, for the development of a next-generation radio access network (RAN). The MOU was signed by Alcatel-Lucent Shanghai Bell, Alcatel-Lucent’s flagship company in China.

Alcatel-Lucent and China Mobile will jointly launch technical and economic studies and investigate the technologies essential to build a centralized, collaborative, Cloud-based RAN (C-RAN) in order to set new standards for cost-effectiveness, network intelligence and energy-efficiency (“green”). The C-RAN will provide a common platform for multi-mode wireless standards such as GSM, 3G, and LTE, enabling to significantly improve network quality and coverage, reduce transmission resource consumption and lower OPEX by up to 50% and CAPEX by 15%.

Rajeev Singh-Molares, president of Alcatel-Lucent’s activities in Asia-Pacific said: “The partnership with China Mobile is directly addressing the challenges of high energy costs, explosion of mobile video and sustainable development. By helping them replace traditional network designs with flexible cloud-like architectures, we are preparing the future and help show the way in terms of technology and economic models.”

The strategic partnership for C-RAN will leverage Alcatel-Lucent’s recently-announced lightRadio, a breakthrough in mobile and broadband infrastructure to streamline and radically simplify mobile networks. Pioneered by Bell Labs, Alcatel-Lucent’s research and development arm, the new lightRadio system will dramatically reduce operating costs, technical complexity and power consumption.  This is accomplished by taking today’s base stations and massive cell site towers, typically the most expensive, power hungry, and difficult to maintain elements in the network, and radically reducing and simplifying them.

lightRadio represents a new architecture where the base station, typically located at the base of each cell site tower, is broken into its components elements and distributed through the antenna or the network for cloud-like processing.  Additionally the various cell site tower antennas are combined and shrunk into a single small powerful, Bell Labs-pioneered multi frequency, multi standard (2G, 3G, LTE) device that can be mounted on poles, sides of buildings or anywhere else there is power and a broadband connection.

The partnership with China Mobile also reflects Alcatel-Lucent’s strong commitment to sustainable development and to Green as testified, in particular, by its leading role in theexternal linkGreenTouch™ Consortium, a global research initiative dedicated to dramatically improving the energy efficiency of information and communications technology (ICT) networks by a factor of 1,000. GreenTouch™ recently presented a Large-Scale Antenna System proof of concept offering the potential for tremendous energy savings thanks to its novel wireless transmission techniques.

Alcatel-Lucent maps the future of mobile technology [Feb 7, 2011]

Alcatel-Lucent (Euronext Paris and NYSE: ALU) today announced lightRadio™, a breakthrough in mobile and broadband infrastructure that streamlines and radically simplifies mobile networks. The solution was unveiled at a major press launch event in London supported by partners Freescale and HP.

Pioneered by Bell Labs, Alcatel-Lucent’s unique research and development arm, the new lightRadio system will dramatically reduce technical complexity and contain power consumption and other operating costs in the face of sharp traffic growth. This is accomplished by taking today’s base stations and massive cell site towers, typically the most expensive, power hungry, and difficult to maintain elements in the network, and radically shrinking and simplifying them.

lightRadio represents a new architecture where the base station, typically located at the base of each cell site tower, is broken into its components elements and then distributed into both the antenna and throughout a cloud-like network. Additionally today’s clutter of antennas serving 2G, 3G, and LTE systems are combined and shrunk into a single powerful, Bell Labs-pioneered multi frequency, multi standard Wideband Active Array Antenna that can be mounted on poles, sides of buildings or anywhere else there is power and a broadband connection.

Alcatel-Lucent’s new lightRadio product family, of which initial elements ready to begin customer trials in the second half 2011, provides the following benefits:

  • Improves the environment: lightRadio reduces energy consumption of mobile networks by up to 50% over current radio access network equipment. (As a point of reference, Bell Labs research estimates that basestations globally emit roughly 18,000,000 metric tons of CO2 per year). Also, lightRadio provides an alternative to today’s jungle of large overcrowded cell site towers by enabling small antennas anywhere.
  • Addresses digital divide: By reducing the cell site to just the antenna and leveraging future advances in microwave backhaul and compression techniques, this technology will eventually enable the easy creation of broadband coverage virtually anywhere there is power (electricity, sun, wind) by using microwave to connect back to the network.
  • Offers major savings for operators: Thanks to lightRadio’s impact on site, energy, operations and maintenance costs; when combined with small cells and LTE, this new solution can lead to a reduction of total cost of ownership (TCO) of mobile networks up to 50% (as a point of reference, Bell Labs estimates that TCO spent by mobile operators in mobile access in 2010 was 150 billion Euros).

Ben Verwaayen, CEO of Alcatel-Lucent, said: “lightRadio is a smart solution to a tough set of problems: high energy costs, the explosion of video on mobile, and connecting the unconnected.”

Alain Maloberti, Senior Vice President, Network Architecture and Design, France Telecom/Orangesaid: “Alcatel-Lucent’s new vision and strategy of mobile broadband is quite exciting: the new wireless network architecture and innovative radio proposal will potentially help us to achieve significant operating cost savings and be better prepared for future challenges. We look forward to work closely with Alcatel-Lucent to explore and test this new approach.”

Tom Sawanobori, VP Technology Planning, Verizon Wireless, said: “Verizon looks forward to learning more about the benefits of lightRadio technology and how they could be applied as we continue to expand and evolve our LTE network.”

Alcatel-Lucent is also in advanced planning with China Mobileas well as a number of other carriers around the globe around co-creation and field trials of the lightRadio solution.

Alcatel-Lucent studies have concluded that the total addressable opportunity for the multi-technology radio market1, which lightRadio addresses, will be over 12 billion Euros in 2014, representing more than 55% of the total wireless RAN market. The cumulative total addressable market will be over 100 billion Euros from 2011-2018.

Alcatel-Lucent’s lightRadio portfolio integrates a number of breakthrough innovations and technologies from Alcatel-Lucent’s Bell Labs research arm and ecosystem of companies:

Market Impact Technology Innovation
A new generation of active antennas allows vertical beam-forming that improves capacity in urban and suburban sites by about 30%, supports all technologies (2G, 3G, and LTE) and covers multiple frequency bands with a single unit. lightRadio cube – A unique Bell Labs antenna technology, the lightRadio Cube includes an innovative diplexer type, radio, amplifier, and passive cooling in a small cube that fits in the palm of the hand.
By moving former basestation components to a System on a Chip (SOC), lightRadio places processing where it fits best in the network – whether at the antenna or in the cloud. System-on-a-chip (SoC) jointly developed with Freescale Semiconductor, integrates intelligent software from Alcatel-Lucent onto fully remotely programmable state-of-the-art hardware.
The economics of radio networks are substantially improved by reducing the number and cost of fiber pairs required to support the traffic between the antenna and the centralized processing in the cloud. Unique compression algorithms provide nearly a factor of three compression of IQ sample signals.
Matching of load to demand through ‘elastic’ controller capacity, delivered on sets of distributed and shared hardware platforms, will improve cost, availability, and performance of wireless networks. Virtualized processing platforms. Alcatel-Lucent will use innovative virtualization software and will collaborate with partners like HP to enable a cloud-like wireless architecture for controllers and gateways.

The lightRadio Product Family

The new Alcatel-Lucent lightRadio product family is composed of the following components: Wideband Active Array Antenna, Multiband Remote Radio Head, Baseband Unit, Controller, and the 5620 SAM common management solution. The Wideband Active Array Antenna will be trialed later this year and have broad product availability in 2012. Additional product family members will be available over 2012, 2013 and 2014.

For detailed information on these elements please as well as a webcast replay of today’s press conference please visit http://www.alcatel-lucent.com/lightradio(replay available at 2:30 pm GMT). The lightRadio approach and technology path will be shown and explained further at Mobile World Congress in Barcelona on 14-17 February.

[1] The multi-technology radio market consists of radio access base stations that simultaneously support 2G, 3G, and LTE, and multiple frequencies, in the same platform

“Alcatel-Lucent’s lightRadio approach is a revolutionary step in evolving traditional telecommunication networks to more heterogeneous networks with higher capacity and lower cost,” said Lisa Su, Senior Vice President and General Manager of Freescale’s Networking and Multimedia Group. “Freescale is collaborating with Alcatel-Lucent to provide the chip-based architectures through our new system-on-chip technology that supports the highly-flexible, multi-standard, programmable capability required to make lightRadio a reality.”

“Communication service providers will be better able to meet the shifting and growing demands placed on their networks as a result of the new lightRadio product family from Alcatel-Lucent,” said Sandeep Johri, vice president, Strategy and Solutions, Enterprise Business, HP. “As part of the lightRadio evolution, HP intends to work with Alcatel-Lucent in a co-creation fashion around the use of cloud and virtualization technologies in the mobile access space.”

“The day has finally come when service providers need to take a serious look at the road ahead in terms of technology and their economic models,” said Phil Marshall of Tolaga Research. “To survive and thrive, service providers must evolve network designs, embrace small cell sites and all-IP architectures and replace traditional network designs with flexible cloud-like architectures that can truly meet the data demands of the future.”

The Disappearing Mobile Masts and Towers [Feb 7, 2011]

The looming global gridlock in mobile communications promises to be averted following the launch today of pioneering technology which will remove the bottlenecks constraining mobile networks and help deliver universal broadband coverage.

Alcatel-Lucent (Euronext Paris and NYSE: ALU), the leading network technology group, has joined forces with industry partners to develop lightRadio™, a new system that signals the end of the mobile industry’s reliance on masts and base stations around the world.

Ben Verwaayen, Chief Executive Officer of Alcatel-Lucent, said: “Today’s and tomorrow’s demands for coverage and capacity require a breakthrough in mobile communications.”

He added: “lightRadio will signal the end of the basestation and the cell tower as we know it today.”

Governments and regulatory bodies are expected to welcome the technical development, which will help meet targets for universal broadband access by laying the foundation to address the so-called “digital divide.”

Other major benefits from lightRadio™ include:

  • Shrinking the carbon footprint of mobile networks by over 50%
  • Reducing the Total-Cost-of-Ownership of mobile operators by up to 50%
  • Improving end user services by significantly increasing bandwidth per user thanks to the deployment of small antennas everywhere

Wim Sweldens, President of Alcatel-Lucent’s Wireless Division said: “lightRadio will help mobile operators evolve their networks to address the mobile broadband deluge.”

lightRadio represents a new approach where the base station, typically located at the base of each cell site tower, is broken into its components elements and then distributed into both the antenna and throughout a cloud-like network.

lightRadio also shrinks today’s clutter of antennas serving 2G, 3G, and LTE systems into a single powerful, Bell Labs-pioneered antenna that can be mounted on poles, sides of buildings or anywhere else there is power and a broadband connection.

The innovation coincides with growing demand for third-and-fourth generation mobile networks and devices, involving the mass adoption of wireless television services and other forms of broadband content. The total addressable market for the radio technology necessary to serve such networks and devices is expected to exceed €100bn1over the next seven years.

Alcatel-Lucent announced the lightRadio™ technical specifications and launch timetable at an industry event in London today. Visit http://www.alcatel-lucent.com/lightradiofor product press release and link to event replay (available at 2:30 GMT).

[1] This is the total addressable market for multi-technology radio solutions that consist of radio access base stations that simultaneously support 2G, 3G, and LTE, and multiple frequencies in the same platform

Freescale introduces industry’s first multimode wireless base station processor family that scales from small to large cells [Feb 14, 2011]

Freescale Semiconductor – the communications processing leader and provider of industry-leading DSP technology – is transforming the future of wireless infrastructure equipment with the introduction of a highly integrated base station-on-chip portfolio built on advanced heterogeneous multicore technology. Freescale’s new QorIQ Qonverge seriesis the first scalable family of products sharing the same architecture to address multi-standard requirements spanning from small to large cells.

The explosion of smart connected devices with increasing data and video content has created a mobile data tsunami, requiring OEMs and carriers to dramatically boost network performance while controlling capital expenditure costs, increasing power efficiency and supporting the emergence of 4G technologies.

The QorIQ Qonverge portfolio of base station-on-chip products is based on a common architecture and integrates communications processing, digital signal processing and wireless acceleration technologies into a single system-on-chip in various configurations optimized for next-generation femtocell, picocell, metrocell and macrocell base stations. Advanced process technology and exceptional integration allow the convergence of multiple functions traditionally performed on separate FPGAs, ASICs, DSPs and processors to be incorporated on a single device. This integration lowers part counts and delivers significant power, cost and footprint reductions for base stations. The common architecture spanning from femto cells to macro cells optimizes R&D investments and software reuse.

“The current explosion in mobile data traffic worldwide provides unique challenges and opportunities for wireless infrastructure equipment providers as they race to increase capacity and capability,” said Lisa Su, senior vice president and general manager of Freescale’s Networking and Multimedia Group. “Freescale’s highly integrated QorIQ Qonverge portfolio enables base station manufacturers to provide a dramatic, step-function improvement in performance, power and cost in a single, flexible architecture.”

QorIQ Qonverge technology can deliver 4x cost reduction and 3x power reduction for LTE + WCDMA macro base stations, and 4x cost and power reductions for LTE + WCDMA pico base stationswhen compared to wireless infrastructure equipment powered by discrete silicon products.

“By integrating multiple industry-leading technologies into one scalable product line, Freescale’s QorIQ Qonverge portfolio delivers significant innovation that advances the state of wireless networking at this pivotal time for the industry,” said Will Strauss, president and principal analyst of Forward Concepts. “The QorIQ Qonverge portfolio presents a unique solution and strengthens Freescale’s position as a processing technology leader in the wireless infrastructure space.”

Freescale leveraged its broad R&D scale, deep application knowledge of the wireless space and extensive IP portfolio to develop the new product family. QorIQ Qonverge processors combine multiple Power Architecture® cores and high-performance StarCore DSPs with a MAPLE multimode baseband accelerator, packet processing acceleration engines, interconnect fabric and next-node process technology. The portfolio’s products support multiple standards, including GSM, LTE – FDD & TDD, LTE-Advanced, HSPA+, TD-SCDMA and WiMAX. In addition, the family’s flexible architecture allows support for evolving standards with software upgrades.

“Freescale’s innovative QorIQ Qonverge platform provides the integration, performance, energy efficiency and unmatched scalability that our new lightRadio™ product portfolio requires,” said Wim Sweldens, president of Alcatel-Lucent’s Wireless Division. “Game-changing products like lightRadio disaggregate the base station between the network and the wideband active antenna, produce dramatic cost savings and need components that provide giant leaps forward such as Freescale’s new QorIQ Qonverge technology.”

“Freescale’s QorIQ Qonverge product line gives us the flexibility to cost-effectively address the widest possible small cell market by providing a common architecture and multimode capabilities, along with the programmability for us to incorporate our own advancements,” said Michael Clark, Airvana’s general manager for femtocell business. “We look forward to working with Freescale to help accelerate the deployment of small cells in next-generation wireless networks.”

According to analyst firm Infonetics, radio access network base station spending is projected to be $197 billion worldwide over the next four years.

Complete solutions
Customers can develop best-of-breed solutions with ease by combining their own differentiated IP with off-the-shelf components from Freescale and ecosystem partners. Freescale has assembled a rich ecosystem of technology leaders focused on wireless applications. Products and services from these partners can be combined with third party tools, as well as Freescale’s CodeWarrior technologies and VortiQa application software. This ecosystem can provide ODMs and OEMs Layer 1 – 4 software, transport and security stacks, RF technologies, test and measurement capabilities and ODM solutions.

A development platform based on the P2020-MSC8156 AMC bundled with partner software and RF solutions is available immediately for rapid software development. In addition, Freescale offers a wide portfolio of GaAs MMICs and LDMOS RF solutions for consumer and enterprise pico and femto cells.

QorIQ Qonverge products
The QorIQ Qonverge portfolio includes four distinct products optimized for small cell (femto and pico) and large cell (metro and macro) applications. It also supports remote radio head and emerging cloud-based radio access network (C-RAN) configurations.

The first products in Freescale’s QorIQ Qonverge multicore portfolio are built in 45-nm process technology and planned for availability in the second half of 2011. The products are the PSC9130/PSC9131 femto SoCs and PSC9132 picocell/enterprise femto SoC devices. Freescale plans to introduce portfolio members targeting larger cell (metro and macro) base stations built in 28-nm process technology later this year.

PSC9130/31 Femto SoC

      8-16 users (WCDMA, LTE, CDMA2K) and simultaneous multimode
      2×2 MiMO
      1x e500 and 1x SC3850
      MAPLE-B2F acceleration

PSC9132 Pico/Enterprise Femto SoC

      32-64 users (WCDMA, LTE) and simultaneous multimode
      2×4 MiMO
      2x e500 and 2x SC3850
      MAPLE-B2P acceleration

About Freescale Semiconductor
Freescale Semiconductor is a global leader in the design and manufacture of embedded semiconductors for the automotive, consumer, industrial and networking markets. The privately held company is based in Austin, Texas, and has design, research and development, manufacturing and sales operations around the world. www.freescale.com.

Supporting Partner Quotes Follow

Enea
“Enea currently provides a breadth of leading software solutions to support Freescale’s extensive portfolio of networking IP,” said Marcus Hjortsberg, vice president of Marketing for Enea. “We look forward to playing a role in unleashing the innovative capabilities of Freescale’s new QorIQ Qonverge hybrid multicore portfolio.”

Green Hills
“With a long history of optimized support for Freescale’s multicore and multiprocessor platforms, we are excited to see Freescale’s next-generation wireless base station solution,” said Dan Mender, vice president of Business Development, Green Hills Software. “QorIQ customers use our multicore development tools and scalable real-time operating systems, MULTI and INTEGRITY, to conquer today’s multicore challenges and we look forward to supporting them as they adopt the QorIQ Qonverge portfolio.”

Mentor Graphics
“The integration of StarCore DSP technology with Power Architecture cores in the new Freescale QorIQ Qonverge portfolio is a major advancement for the wireless industry. We see great potential for this class of heterogeneous multi-core designs,” said Glenn Perry, general manager of the Mentor Graphics Embedded Software Division. “The Mentor Embedded Linux platform for Freescale devices combined with CodeSourcery software development tools will enable our mutual customers to develop advanced, innovative and scalable systems with increased performance and power efficiency.”

Aricent
“We are thrilled to be partnering with Freescale to accelerate development of new best-in-class solutions in the wireless infrastructure market,” said C.P. Murali, executive vice president and general manager at Aricent. “Our comprehensive suite of software frameworks and product engineering services enable customers to rapidly introduce innovative solutions based on Qonverge technology.”

Continuous Computing
“We are proud to be a member of Freescale’s technology partner program and for Freescale to be a member of the Continuous Computing Network,” said Todd Mersch, director of Product Line Management at Continuous Computing. “Together we offer customers a complete range of femto to macro base station solutions consisting of Trillium wireless software and the latest advances in the QorIQ Qonverge portfolio of processors.”

Critical Blue
”Freescale’s QorIQ Qonverge platform is architecturally very innovative. Meeting next-generation network speed requirements will require software developers to make knowledgeable choices in application partitioning and task allocation to the different types of cores on these platforms,” said David Stewart, chief executive officer of CriticalBlue. “The development program we have ongoing with Freescale will ensure that our Prism tool has all the capabilities needed to support a smart methodology for software developers, enabling them to get the maximum benefit from targeting the QorIQ Qonverge platform.”

L&T Infotech
“L&T Infotech is excited to collaborate and build world-class wireless solutions based on Freescale’s QorIQ Qonverge portfolio,” said Sudip Banerjee, chief executive officer for L&T Infotech. “Our end-to-end telecom proficiency spans the entire wireless domain, with proven expertise on LTE/WiMAX, multicore technologies, network security and optical transport networks, ultimately enabling accelerated time-to-market for our client’s products.”

Signalion
“We are pleased to support Freescale’s QorIQ Qonverge portfolio with our world-class wireless test technologies to ensure high-performance equipment, service and end-user experiences,” said Tim Hentschel, managing director for Signalion GmbH. “Freescale is charting new territory with the QorIQ Qonverge hybrid portfolio that promises to transform the future of wireless infrastructure equipment.”

Tata-Elxsi
“The introduction of theQorIQ Qonverge portfolio means OEMs now have a single-architecture, compatible family of products to address all their base station design needs,” said Shyam Ananthnarayan, head of the Communications Business Unit at Tata Elxsi. “As a key member of Freescale’s rich ecosystem, Tata Elxsi will offer market-leading LTE eNodeB software stacks optimized to ease customers’ development of best-of-breed solutions based on Qonverge technology.”

Wireless support and network functions converge in QorIQ Qonverge processors [By Tom Thompson, June 16, 2011]

Wireless communication seems ubiquitous these days–until you wander into a dead zone and lose the network connection to your laptop, tablet, or mobile phone. Telco carriers are working hard to eliminate such areas by installing more macrocell towers. Sometimes installing one of those big bruisers in an area isn’t possible, so the carriers fill in the coverage gaps by scaling down. Scaling down in this case means building smaller wireless installations, such as microcell (also known as metrocell), picocell, and femtocell base stations.

You don’t have to be a rocket scientist to realize that deploying such a diverse array of gear can be a nightmare, both in terms of hardware design, embedded software development, and support. Every base station has various wireless formats to manage, and the smaller base stations must also implement certain wired backhaul technologies such as Ethernet and ET/T1 so that they can connect to the carrier’s infrastructure. One way to alleviate this headache of multiple base station designs is to reduce the different types of hardware used. For this scheme to work, however, the signal processing capabilities of a DSP and the networking functions of an application processor must converge into one unified part.

Freescale happens to be well-positioned to provide such a converged solution. First, the company makes its StarCore DSPs, which are 32-bit multicore processors engineered for high data processing throughput and support for a variety of wireless protocols. Second, the company makes high-performance network processors, notably those that comprise its QorIQ Processing Platform. These are 32-bit processors based on a low-power, high-performance Power Architecture core that manages several high-speed communications interfaces. Variants of both the StarCore and Power Architecture families feature fewer cores or lack hardware accelerators, which enable them to hit a specific price point or power consumption target.

Freescale’s convergence strategy is simple in concept, yet presented an engineering challenge. First, you take the core subsystems of these two processors and place them on a single chip. Next, surround the cores with a bevy of enhanced communications interfaces. Finally, knit all of these elements together with a high-speed switching fabric. The result is the QorIQ Qonverge processor, a system that is essentially a base station on a chip. Let’s delve deeper into the microarchitecture of the QorIQ Qonverge and see how it offers a comprehensive solution.

A Tale of Two Processors

The block diagram in Figure 1 depicts the major logic blocks that make up the QorIQ Qonverge PSC3191E, a part suitable for femtocell and picocell base station designs.

Figure 1

Figure: Block diagram of the QorIQ Qonverge PSC9131E processor.

The StarCore subsystem consists of an SC3850 DSP core that has six execution units(four data ALUs, and two address units) that operate in parallel to retire six instructions simultaneously per clock. The ALUs support integer and fractional arithmetic, including multiply-accumulate (MAC) and other sophisticated instructions. The core is therefore capable of reading, processing, and writing a continuous stream of data. The subsystem has its own internal L1/L2 caches, an MMU, an interrupt controller, and timers.

The Power Architecture subsystem consists of an e500 core, which is a superscalar processor with multiple execution units that can issue and retire two instructions per clock cycle. It has its own internal L1/L2 caches, an interrupt controller, and timers.

Each core has separate 32 KB instruction and data caches to reduce latency and boost throughput. The Harvard architecture implementation of these caches requires more transistors, but it helps to ensure that the cores receive a continuous stream of data and instructions. The unified L2 caches can be configured so that a portion of them acts as a low-latency L2 memory for time-critical data or variable storage.

Both subsystems would grind to a halt if they could not access memory or peripheral devices rapidly. To minimize this bottleneck, a high-performance communications interface, known as the Chip-Level Arbitration and Switching System (CLASS) fabric was used. This high-bandwidth, low-latency switching fabric is a fully-pipelined, device interconnect that provides direct access to the resources of the subsystems and on-chip peripherals.

The DMA engine, which can be programmed by either core, uses the CLASS fabric to manage data transfers. It has four bidirectional channels. Off-chip memory is accessed through a DDR memory controller. The controller supports DDR3/DDR3L devices, and can manage a 32-bit interface at a maximum 800 MHz data rate.

Hardware Gives a Hand

As you can see, the QorIQ Qonverge processor is one busy piece of silicon. Among its many duties is to process various wireless formats and encrypt communications sessions. These wireless and encryption algorithms are complex and require substantial processing power. While they can be done in software, the QorIQ Qonverge processor has dedicated execution units that can off-load the computational demands of these algorithms from the core subsystems.

The Multi Accelerator Platform Engine for Femto BaseStation Baseband Processing (MAPLE-B2F) unit provides hardware acceleration for baseband algorithms such as channel decoding/encoding, UTMS chip rate processing, and LTE uplink/downlink processing. It also accelerates the computation of Fourier transforms, matrix inversions, CRC algorithms, convolution and filtering operations, Turbo encoding/decoding, and Viterbi decoding. It is a second-generation design that builds upon an established predecessor used in certain StarCore DSPs.

For encryption duties there is the security engine, a cryptographic and assurance acceleration unit. It uses a job queue interface that can schedule multiple cryptographic tasks in parallel, and its multiple accelerators can be shared among different applications. In concert with the DMA engine, this module can use scatter/gather operations to collect data that is distributed throughout memory. The module has hardware accelerators for public key, message digest, ARC four, SNOW 3G f8 and f9, and Katsumi cryptographic operations. It also has accelerators that manage DES, AES, and CRC operations, and it supports a variety of cryptographic authentication schemes.

Note that acceleration capabilities are not limited exclusively to these particular modules. Other modules can accelerate a subset of their functions. For example, the Ethernet controller can off-load and accelerate certain TCP/IP stack operations such as IP header recognition and checksum, plus TCP/UDP checksum and verification.

Smart Controllers

The PSC9131E has several controllers that manage complex I/O operations concurrently. The Antenna Interface Controller (AIC), as its name implies, handles transactions between the processor and an external Radio Frequency (RF) subsystem. It supports CDMA, WCDMA-DD, LTE-FDD, LTE-TDD, and GSM (receive only) network modes. Data received from the transceiver is reformatted and stored by the AIC into system memory or in the MAPLE-B2F unit. Data to be transmitted is transferred by DMA to the AIC where it frames the data for the proper network format and sends it to the transceiver. The AIC can handle up to a maximum of four data lanes, depending upon the wireless format in use.

The Ethernet controller features two enhanced Gigabit Ethernet interfaces that can operate at speeds of 10 Mbps, 100 Mbps and 1 Gbps. These interfaces are IEEE 802.3, 802.3u, 820.3x, 802.3z, 802.3ac, and 802.3ab compliant. As mentioned previously, the controller can accelerate the identification and retrieval of standard and non-standard protocols present on the Ethernet connection.

The USB controller is USB revision 2.0 compliant and can function as both a host and a device controller. As a host, it supports low-, full-, and high-speed transfer rates. It contains its own DMA engine that reduces the interrupt load on the processor and minimizes the bus bandwidth necessary to service any USB transactions.

In summary, these several controllers provide sophisticated wireless, Ethernet, and USB services, yet without adding a considerable burden to the processor’s operation, especially when it is conducting network/wireless routing.

Ports Aplenty

The PSC9131E provides a number of ports that enable you to connect a large cast of supporting peripherals to the processor. These are:

  • Enhanced SPI
  • Two DUARTs
  • Integrated Flash memory Controller (IFC)
  • Two I2C controllers
  • General-Purpose I/O (GPIO) interface with 32 bidirectional ports
  • Universal Subscriber Identity Module (USIM) interface for communicating with a SIM card
  • PWM optimized to generate sound
  • Enhanced Secured Digital Host Controller (eSDHC) for interfacing to SD/SDIO/MMC cards

As a unit, QorIQ Qonverge processors represent a fusion of many existing, field-proven Freescale technologies. However, the resulting processor is far greater than the sum of its parts. Since the QorIQ Qonverge processor implements the level-1, -2, and -3 processing layers required for network/wireless communications on-chip, it only lacks some external hardware, such as a power supply, flash memory, DRAM, Ethernet line-driver and a RF transceiver to implement a stand-alone femtocell or picocell base station. It is designed to replace both the DSP and the applications processors at the heart of many such base station designs, as shown in Figure 2. By doing so, the QorIQ Qonverge part can reduce complexity, processing latencies, and the bill of materials for a base station design.

Figure 2. The QorIQ Qonverge-based picocell design (bottom) uses fewer parts than a design based on separate DSP and application processors (top).

A Processor for Many Uses

The QorIQ Qonverge processor isn’t limited to short-range base stations, however. It can also scale up: Multicore variants can support microcell and macrocell base station designs. This allows you to assemble a range of base station designs around one part.

Besides simplifying the base station design, the QorIQ Qonverge processor also allows you to reuse existing software. For example, existing StarCore MSC8156 DSP code and P2020 application code can be migrated to the QorIQ Qonverge processor, since the cores are nearly identical. The same CodeWarrior tool suite for StarCore DSPs and CodeWarrior tools for Power Architecture can be used to write and debug the software. Furthermore, the code written for–say, a picocell base station–can be reused in microcell and macrocell base station designs. Revising the code for a multicore processor can be tricky, but you can start the process with the knowledge that the application code was stress-tested on smaller base stations. Also, Freescale’s partner, CriticalBlue, has a multicore simulation tool to assist you in this process for Power Architecture-based software. All of this adds up to be a comprehensive solution for embedded base station designs.

Turn the lightRadio on [March 8, 2011]

Development hopes to double network capacity while halving power consumption. By Roy Rubenstein.

Mobile operators face significant challenges, given the rapid growth in mobile broadband traffic. They are starting to roll out the latest mobile technology, Long Term Evolution (LTE), as yet another overlay alongside the existing wideband CDMA and GSM networks. Mobile sites are thus being crammed with antennas and basestation equipment.

The cellular network is 30 years old,” said Tom Gruba, marketing director for wireless activities at Alcatel-Lucent. “You cannot just keep adding more basestations in the network to solve the [data] capacity problem; the business model doesn’t work.” Alcatel-Lucent’s solution is lightRadio, which moves the processing power to the antenna or into the network, like cloud computing. The system vendor points out that architecture change is being industry led; what Alcatel-Lucent is claiming is that the lightRadio portfolio of products is the first to support the new architecture.

Announced in the run up to Mobile World Congress 2011, lightRadio promises to double network capacity, while halving power consumption. The lightRadio products include a wideband active array antenna that integrates the amplifier and antenna elements, a radio SoC developed with Freescale, and a multimode radio controller platform being developed with HP. Integrating the amplifier alongside the antenna achieves better coupling of the signal to the antenna. Less power is wasted, such that a smaller amplifier can be used.

Alcatel-Lucent - lightRadio The wideband active array antenna is implemented as a 6cm cube, pictured left. The wideband operation covers 400 to 4000MHz, allowing one cube to support 700MHz and 2600MHz bands. “These can be stacked, depending on how much power is needed, and you can have two or three columns to serve two or three frequencies and any technologies you want,” said Gruba.

Being an active design, the antenna boosts cell capacity through beam forming and multiple input, multiple output (MIMO) technology. Combining the amplifier-antenna with the radio chip forms a compact basestation that can be mounted on masts or within buildings. Such a combined baseband/remote radio head takes little space and avoids the need for air conditioned cooling associated with traditional basestations.

LightRadio will also enable a cloud computing style radio network architecture, where the basestation is separated from the antenna-amplifier. Traditionally, the radio amplifier was connected to the baseband via a backplane. The advent of the remote radio head led to the creation of the common public radio interface (CPRI) to connect the amplifier at the antenna with the baseband unit. With a cloud based radio network, basestations from 25 or 30 cell sites could be placed in a facility up to 40km away, with the CPRI signal carried over an optical link.

Alcatel-Lucent estimates the maximum lightRadio bit stream needed to be carried over the CPRI link is 10Gbit/s. Compression technology will reduce this by a factor of three, so operators can avoid installing a dedicated 10Gbit optical link. At the core of the baseband processing is the SoC developed with Freescale.

“Dimensioning the various aspects of the SoC is critical,” said Preet Virk, Freescale’s director, networking segment. The SoC design uses Freescale’s recently announced QorIQ Qonverge technology that supports designs spanning femtocells to macro basestations. Two devices have been announced – for femtocells and picocells – that are implemented using a 45nm cmos process. Alcatel-Lucent’s radio ic will be implemented in 28nm cmos and will be available from 2012.

Freescale is not willing to detail the basestation SoC yet, but the scalable design uses cores and IP blocks that are shipping in Freescale products, such as the e500 Power Architecture core and the StarCore SC3850 dsp as well as baseband acceleration blocks.

“Scalability comes in many forms,” said Barry Stern, Freescale’s baseband DSP & SoC products, marketing manager, wireless access division, networking and multimedia group. “From a few users to hundreds of users; from 1.25 to 20MHz bandwidths and beyond; simultaneous multimode support; and enabling OEMs to use the same software across different basestation designs, saving on development costs.”

Freescale’s femtocell SoC supports 8 to 16 users and uses an e500 core and a dsp core. The picocell SoC supports 32 to 64 users and uses two e500s and two dsp cores. Freescale’s metro and macro cell SoCs will support hundreds of users, requiring multiple dsp and cpu cores. Other features will include several DDR3 memory controllers; baseband acceleration for turbo coding, fast Fourier transforms and MIMO; and interfaces for Ethernet, PCI Express and CPRI, according to Virk.

“The SoC in the cloud is going to give us the ability to do all sorts of new things,” said Tod Sizer, head of Alcatel-Lucent’s Bell Labs’ wireless research domain.

Intercell communication

Having baseband processors concentrated at one location enables intercell communication. One application is Coordinated Multipoint (CoMP), what Alcatel-Lucent calls networked MIMO, which will be a feature of the 3rd Generation Partnership Project’s (3GPP) Release 10 cellular standard.

Currently, only one cell serves a user, even if the user is commonly near the cell edge and is sensed by adjacent cells. With CoMP, MIMO technology can be used such that different streams are transmitted between the basestations and the user, boosting throughput. And it is this technique, says Alcatel-Lucent, which will double overall capacity.

The cloud like architecture will also enable new uses that benefit energy consumption. “One we are going to see in the coming years is coordination on the basis of energy usage,” said Sizer, citing how, for example, all users could be moved to the 3G network, with the LTE basestations turned off to save power, based on time of day and subscriber requirements. “You have that capability of moving users if you have control of both technologies from a single cloud,” said Sizer.

Power consumption has become a key issue for operators, with the likes of France Telecom looking to reduce the energy consumption in its network by 15% by 2020. In turn, US operator Verizon stipulates that each new piece of equipment must be at least 20% more energy efficient than its predecessor if it is to be deployed. Alcatel-Lucent is developing a virtualised radio controller architecture as part of the portfolio, working with HP to consolidate three generations of radio controllers into one platform. In GSM, the basestation controller (BSC) connects to multiple cell sites, while a radio network controller (RNC) is used in 3G.

“If I make the BSC or RNC a software routine, the software becomes independent of the platform and I can put both functions in one box,” said Gruba. Alcatel Lucent is basing the design on an ATCA version 2 based general purpose processor design, while HP is providing server and virtualisation expertise to the controller design. Alcatel-Lucent expects to be trialling the wideband active array antenna in the autumn before it becomes commercially available in 2012.

The remaining lightRadio elements will appear from 2012 onwards. Ken Rehbehn, principal analyst at the Yankee Group, says lightRadio is arguably the most important wireless equipment development made by Alcatel-Lucent since its 2006 merger. However, he points out that other vendors are pursuing comparable strategies that might challenge much of the lightRadio vision.

lightRadio: hideous cell towers to get smaller, lose the “hut” [Feb 2011]

Cell TowerEven when they’re disguised like fake trees or church steeples, cell towers are ugly. Most have a hut at the bottom, stuffed with baseband processing gear that does the hard work of creating and decoding, say, an LTE signal. These huts often contain signal amplifiers, big units that push power up the tower to the actual antennas—and half the signal is lost just moving through the tower’s wiring. At the top, rectangular antennas bristle from the tower. One set might be for 2G support, one for 3G, and another for 4G.

Alcatel-Lucent, one of the world’s biggest wireless gear makers, turned to its Bell Labs research division to rethink this aging architecture. First step: apply the “data center” model of centralization to baseband processing and consolidate all that rack-mounted hardware into a few locations per city, each connected to the towers it serves by fiber optic cable.

Right now, a cell tower fault might require a truck roll and a drive through traffic. When the tech gets to the tower site, it might turn out to be at the top of a hotel, and permission to access it must be obtained from the site manager. Put all the processing gear in a single remote location, however, and repairs to it get cheaper and faster.

Clustering the baseband units also makes it easier to do load balancing across a region. When commuters are driving into work, for instance, the baseband cluster can turn its combined energy to handling the signal load coming from towers along the highways and train lines. During the day, processing could handle heavy downtown traffic, while it shifts focus to the suburbs in the evening. Such load-balancing doesn’t produce any additional spectrum or data throughput, but it does mean that a carrier can operate fewer baseband processors, saving the carrier cash.

The third advantage to centralizing the baseband processors is that the interconnection fabric between them can operate at high speeds, fast enough to support a standard called CoMP, or Co-ordinated Multipoint. CoMP, which is currently moving through standardization, relies on the fact that, in many locations, a user’s wireless gadget is in range of multiple towers (the closer one comes to the edge of each cell, the more towers can typically see the device).

This is usually a waste, since multiple towers spend bandwidth contacting the gadget but can’t independently deliver different data. CoMP turns it into a bonus by dividing up requested download data and using all cells in the area to deliver a different slice of it at once—akin to the way BitTorrent operates. The phone then combines the data from all the towers in the proper order. This additive approach to using different towers means that a user’s total throughput can go up substantially, but it requires centralized baseband to function.

Finally, the new lightRadio baseband bear can do software-defined protocols. Upgrading to LTE? Just upgrade the software on the baseband processor. (Traditional rack-mounted baseband processors required dedicated units for each protocol.) A new baseband chip from Freescale makes it possible, but it gets even cooler when used in conjunction with the new wideband antennas.

LightRadio uses a new antenna that, in Alcatel-Lucent’s words, collapses three radios into one. The radios are tiny cubes of 2.5 inches square, and each can operate between 1.8GHz and 2.6GHz. They use tiny amps that can be located atop the tower, built into the antenna enclosure, which keeps the amp size down and dramatically cuts down on the power loss.

These radio cubes are stacked in groups of 8 to 10 in order to make an antenna element, and when one cube in the array goes down, the others remain unaffected. (In a traditional system, the whole antenna unit would fail.) The amps cover enough different frequencies that, in many cases, simply changing the software configuration on the baseband unit can control whether each antenna offers a 2G, 3G, or 4G signal.

The antennas also do “beam forming”—fine-grained directional control over the radio signal—in both the horizontal and vertical dimension to better connect with local wireless devices. Alcatel-Lucent claims capacity improvements of 30 percent through the use of vertical beam-forming alone.

The end result of the system: lightRadio cell towers don’t need huts, they don’t need air conditioners and heaters, big amps, fans, or even local processing gear. Baseband processing moves closer to the data center model and gets cool new capabilities like CoMP and load-balancing. The system’s cost savings come from power (Alcatel-Lucent claims a 50 percent reduction), along with lower construction and site rental fees. The total macro capacity of the system should double while cutting operator costs dramatically.

Though it will take months for any carrier to roll out this or similar gear, advances like lightRadio are crucial as wireless usage continues to soar and smartphones break out of the enterprise and the technorati and into the mainstream. And by making cell infrastructure smaller, cheaper, and less power-hungry, this sort of gear brings wireless networking into reach of more people, especially in rural areas and developing countries.

Alcatel-Lucent’s lightRadio™ portfolio wins NGN magazine leadership award for transforming mobile broadband networks [May 19, 2011]

Alcatel-Lucent (Euronext Paris and NYSE: ALU) today announced that its lightRadio portfolio was recognized as the outstanding new achievement in broadband Internet communications by the leading industry magazine NGN, as part of its NGN Leadership Awards contest. The awards program recognizes outstanding products, services and technologies relating to next generation networks.

“This award underlines the sweeping impact our lightRadio portfolio is having on the wireless communications industry,” said Wim Sweldens, President of Alcatel-Lucent’s Wireless activities.  “lightRadio isn’t just redefining the shape of the wireless base station, it also offers a compelling vision for what wireless networks will look like in the future.”

“This award for Alcatel-Lucent’s LightRadio is a great testament to their innovation.  They have brought to market a solution designed to solve the most critical issues facing the wireless industry, starting with the quasi impossibility to add new sites to increase capacity and improve coverage,” said Stéphane Téral, Principal Analyst, Mobile and FMC Infrastructure, Infonetics.

lightRadio™ is a new product offering from Alcatel-Lucent that will dramatically reduce operating costs, technical complexity and power consumption in mobile broadband networks. Designed to meet the long-term needs of mobile operators seeking to ensure their networks can handle increasing traffic loads, lightRadio radically shrinks and simplifies today’s base stations.

The lightRadio portfolio is designed to increase network capacity while simultaneously reducing the cost of delivery, on a per bit basis. The overarching goal is to give operators more options and a flexible path forward for the next decade.  By increasing the capacity at a reduced cost the operators can pursue a whole new market segment, the mass market. In addition, being able to use the lightRadio cube technology in various forms means Small Cells can leverage the technology and rural villages can get wireless coverage at lower costshelping to cross the digital divide.

lightRadio promises greener, simpler, lighter networks, and the benefits are substantial, including:

  • 50% reduction in total cost-per-bit as compared to 3G when adding a comparable amount of capacity
  • 50% reduction in energy consumption when compared to conventional ground based solutions
  • Small and easily deployable – can be deployed anywhere there is a power source and broadband connection and deals with less zoning restrictions
  • Nearly invisible – the WB-AAA is two products in one. It’s adding another radio in the same size form factor with no additional lease cost or further pollution of the urban skyline.

The Alcatel-Lucent “lightRadio” product family is composed of the Wideband Active Array Antenna, the Multiband Remote Radio Head, the “lightRadio” Baseband Processing, the “lightRadio” Control, and the 5620 SAM common management.  The Wideband Active Array Antenna will be trialed later this year and have broad product availability in 2012. For more information on the lightRadio portfolio please click here.

Bell Labs lightRadio™ Breakthroughs [Feb 7, 2011]

The world of mobile communications moves fast. With new mobile devices, new applications and ever-growing and changing consumer demands the wireless networks in use today have to evolve. Rather than take an incremental approach to meet these challenges, Bell Labs took a leap and developed a radically new approach to wireless technology. In order to do this, Tod Sizer, head of Bell Labs Wireless Research, challenged his team to think not just “outside the box,” but to think “inside the cube.” In six short months, the team developed a cube-shaped antenna that would fit in the palm of a hand – and was ready to test it with customers.

Tod Sizer, Head of Wireless Research for Alcatel-Lucent Bell Labs, talks about developing the lightRadio antenna module. lightRadio represents a new architecture where the base station, typically located at the base of each cell site tower, is broken into its components elements and then distributed into both the antenna and throughout a cloud-like network. Additionally today’s clutter of antennas serving 2G, 3G, and LTE systems are combined and shrunk into a single powerful, Bell Labs-pioneered multi frequency, multi standard Wideband Active Array Antenna that can be mounted on poles, sides of buildings or anywhere else there is power and a broadband connection.

“There are many different types and sizes of base stations, from very small to very large, depending on where they are located, such as in an urban or rural area,” explained Sizer. “I realized that we needed to design a new and flexible type of antenna array for different environments– including one designed to the smallest possible size – ‘invisible antennas’ – in order to be flexible enough to meet the growing needs of all of our wireless service provider customers.”

A radio antenna element is a component of an antenna system that transmits signals from the wireless base station to a wireless end-user using a mobile phone, smart device or laptop. By reducing the size of the element itself, an antenna array can be scaled to fit any wireless need simply by adding more of these elements to the array.

Bell Labs wireless researchers weren’t daunted by the challenge of building something that was roughly ten percent of its current size. Several wireless research teams in Stuttgart and Ireland focused on different aspects of the problem, combining their unique areas of expertise to quickly resolve a myriad of technical challenges to reduce the antenna element’s size, improve energy efficiency and lower manufacturing expenses. The clever architecture of this new antenna is but one of the innovations critical to realizing Alcatel-Lucent’s unique lightRadio portfolio.

“We believe this unique antenna – as part of the lightRadio solution – will have a significant impact in the wireless space,” concluded Sizer.

Quick Links

Wim Sweldens presents lightRadio, a breakthrough for the mobile industry [Feb 7, 2011]

Wim Sweldens, President, Alcatel-Lucent wireless activities, talks about lightRadio™, a new system that signals the end of the mobile industry’s reliance on masts and base stations around the world.
lightRadio represents a new architecture where the base station, typically located at the base of each cell site tower, is broken into its components elements and then distributed into both the antenna and throughout a cloud-like network. Additionally today’s clutter of antennas serving 2G, 3G, and LTE systems are combined and shrunk into a single powerful, Bell Labs-pioneered multi frequency, multi standard Wideband Active Array Antenna that can be mounted on poles, sides of buildings or anywhere else there is power and a broadband connection.
More info: http://www.alcatel-lucent.com/lightradio

Alcatel-Lucent. Cube light Radio [Feb 18, 2011]

Highlights of lightRadio press conference [London, Feb. 7th, 2011]

Presentation of the lightRadio system which will dramatically reduce technical complexity and contain power consumption and other operating costs in the face of sharp traffic growth. This is accomplished by taking today’s base stations and massive cell site towers, typically the most expensive, power hungry, and difficult to maintain elements in the network, and radically shrinking and simplifying them. Conference guests: Stephen Carter, Wim Sweldens, Tod Sizer and Javier Garcia Gomez (Alcatel-Lucent), Lisa Su (Freescale) and Joe Weinman (HP).

Metro styled new entertainment experience on Xbox 360

Although not mentioned in any of the press materials (see the excerpts below) Microsoft has shown a brand new Xbox 360 UX interface in its E3 keynote today. It is based on the same Metro design language as Windows Phone 7 and other, including the latest ‘Windows 8’ UX. See more information about that in: Next-generation cloud client experiences based on the Metro design language [Jan 24]

Here are the screenshots of the new Xbox interface:

Xbox New Home
New Xbox Home

New Xbox Music

Xbox New Games
New Xbox Games

Xbox New Video
New Xbox Video

Xbox Bing for Discovery
Now joined by Xbox Bing: here for starting the discovery

Xbox Bing search results for voice introduced x-men
and here showing the search results for the voice introduced
‘X-Men’ keyword (the games and others with ‘X-Men’)

Xbox Live TV
Now joined by Xbox Live TV as well

The above screens of the new UX have beeen shown via voice activation on the scene and commented as:

Use your voice to find the entertainment [with the help of Xbox Bing].

… TV is more amazing when you are the controller.

At the same time navigation in the new UX has not been showm. First we could probably see that when Xbox Live TV service will be introduced in a month or so. Most likely we will have the new UX at the start of the holiday season when voice search is coming. See the following excerpt from one of the press materials:

Voice search with Bing on Xbox will become available this holiday season, as part of the Xbox LIVE update.

See more: Xbox 360: The Future Revealed – the already available recording of today’s morning show by Microsoft
(position to [1:04:44—1:10:45] to watch the above new UX in action)

Relevant excerpts from the press materials:

Xbox 360 Gives TV a New Voice — Yours [June 6, 2011] (emphasis is mine)

Microsoft Corp. today kicked off the Electronic Entertainment Expo (E3) by solving the challenge of finding the entertainment you want, quickly and easily. The solution: voice search with Bing on Xbox 360. Bing on Xbox searches Netflix, Hulu Plus and ESPN, as well as music, video and Xbox LIVE Marketplace to find exactly the entertainment you want to enjoy. With Bing on Xbox and Kinect for Xbox 360, you can effortlessly find the games, movies, TV shows, sports and music you want. You say it, Xbox finds it.

Over the past two years, Microsoft has joined with some of the world’s largest TV operators to bring live television to Xbox LIVE in the United Kingdom with Sky TV, in France with Canal+ and in Australia with FOXTEL. Now, Microsoft has announced its commitment to expand access to live television programming on Xbox 360 to more providers in the United States and around the world during the upcoming year. Consumers will enjoy news, sports and their favorite local channels, all just a voice command away, on Xbox 360. Also this year, Microsoft is teaming up with Ultimate Fighting Championship (UFC)* to bring the depth of the world’s best mixed martial arts programming to Xbox LIVE.

Microsoft is building on its expansive catalog of tens of thousands of movies and TV shows available on demand from Hulu Plus, Netflix and Zune by bringing YouTube** to Xbox 360. You will gain access to great “Web original” content from around the world — the latest videos, gaming tips and a universe of compelling content. And for the first time ever, you can control YouTube videos just by using your voice. A great way to experience YouTube is now on Xbox 360.

Did you miss “The Social Network” in the theater? You will be able to simply tell your television what you want to watch and choose from the multiple sources on Xbox 360 that may be offering it live or on demand. Want to play the latest viral videos from YouTube from the comfort of your couch? Xbox 360 and the magic of Kinect make it as easy as using your voice. Xbox 360 brings together the entertainment you want, whether it’s movies, TV shows, music, sports, or your favorite games, available instantly with the command of your voice through Bing on Xbox 360 and Kinect.

Xbox LIVE Fact Sheet [June, 2011] (emphasis in bold is mine)

Xbox LIVE is the online entertainment service for your Xbox 360 console, connecting you to an ever-expanding world of games, movies, TV shows, music, sports, and ways to be social with family and friends. … Xbox LIVE is an active community of nearly 35 million people throughout 35 countries.

Better with Kinect. Compatible with every Xbox 360 console, Kinect for Xbox 360 makes you the controller. With Kinect, your voice is the remote control. Interact with your entertainment on Xbox LIVE through the sound of your voice or a wave of your hand. Kinect creates experiences that are familiar, intuitive and tailored for each game or entertainment experience.

Voice search. Finding the right entertainment is easy when you are the controller. Coming Holiday 2011, you say it, and Xbox finds it immediately, regardless of where your favorite entertainment resides across Xbox LIVE.4 Through the simplicity of Kinect and the intelligence of Bing on Xbox, you’ll have the ability to find entertainment content on your Xbox 360 system including games, movies, TV shows, sports and music.

Xbox: All-In-One Hub for the Living Room [June 6, 2011] (emphasis is mine)

“Last year, Xbox 360 changed the game with Kinect. This year with the power of Xbox, the simplicity of Kinect and the intelligence of Bing, Xbox 360 will change living room entertainment forever,” says Don Mattrick, president of the Interactive Entertainment Business. “Combine all that we offer with great partners and a growing audience, and Xbox is poised to register another record year. This year Xbox 360 will go from being the number one selling console in North America to the number one selling console globally.”

At last year’s E3, Microsoft introduced the world to Kinect, which went on to become the fastest-selling electronic device in history. Though Microsoft doesn’t have a singular star like last year’s Kinect to showcase at E3, the so-called Super Bowl of the electronic entertainment industry, Molly O’Donnell, Xbox 360 director of marketing integration, says the company will show competitors, the media and fans that Xbox 360 “has a deep bench.”

“Last year with Kinect, you could say, ‘Xbox, play’ to start a movie or music, but we thought we’d take the power of voice to the next level,” O’Donnell says. “With voice search, you can say ‘Xbox, Bing, Harry Potter,’ and your Xbox will find all the Harry Potter content available to you on Xbox LIVE, whether it’s a game, a movie, or a soundtrack.”

Voice search with Bing on Xbox will become available this holiday season, as part of the Xbox LIVE update.

SEO – Rand Fishkin – SEOmoz – Future – Past

Social Signals and Ranking [publication date: May 27, 2011; likely presentation date: 5/6/7 of April, see the below SMX München information]

Rand Fishkin from SEOmoz talks about his idea of the future of link building and the importance of social singals for rankings. The talk was recorded for the Microsoft Academy while SMX Munich was in town during which Microsoft managed to win Rand Fishkin to come to their German HQ and talk about SEO and Social Media.

You can download the slides here.

SMX München, 05.-06. April 2011

Keynote: Rand Fishkin, SEOmoz – Die aktuellen SEOmoz Ranking Faktoren

Das neue Suchuniversum: Google, Microsoft, Facebook, Apple & Co.

Rand Fishkin, SEOmoz
Stefan Weitz, Bing, Microsoft
Niels Dörje, Tandler.Doerje.Partner
Maile Ohye, Google Inc.

About Rand Fishkin [from SEOmoz website]

Rand Fishkin is the CEO & Co-Founder of the web’s most popular SEO Software provider; SEOmoz. He co-authored the Art of SEO from O’Reilly Media and was named on the 40 Under 40 List and 30 Best Young Tech Entrepreneurs Under 30. Rand has been written about in The Seattle Times, Newsweek and PC World among others and keynoted conferences on search around the world. He’s particularly passionate about the SEOmoz blog, read by tens of thousands of search professionals each day.

How to use Search Engine Optimization (SEO) & Content Marketing to Attract a boatload of Qualified Leads to your Website – with Rand Fishkin [Owen McGab Enaohwo for his HireYourVirtualAssistant.com, May 10, 2011]

If you already have a website for your business, I bet you also need a constant stream of qualified and targeted leads coming to your website on a daily basis because some of them will eventually buy your services and/or products. There are several paid options available that you can use to drive traffic to your site such as Pay Per Click (PPC), Website Sponsoring, Banner Display Advertising, Affiliates and so on. Wouldn’t it be great for a boatload of relevant leads to find your website for FREE? If you are like me, your answer is YES! The solution is called Search Engine Optimization (SEO); though it will take time and effort in the long run it’s a worthy investment. In order to get expert information on SEO and how we can create the right niche content for our websites, properly optimize them so that they are indexed and displayed organically on Search Engines like Google, Bing, Yahoo and so on; I interviewed Rand Fishkin. Enjoy the interview!

The Beginners Guide to SEO [free from Rand Fishkin]

New to SEO? Need to polish up your knowledge? The Beginner’s Guide to SEO has been read over 1 million times and provides comprehensive information you need to get on the road to professional quality SEO.

… an in depth tutorial on how search engines work that covers the fundamental strategies that make websites search engine friendly.

Great Content for SEO: Simpler than You Ever Imagined [April 26, 2011]

Today I want to share an incredibly simple yet massively powerful process for building search-optimized, “great content.” There’s no fancy tricks and nothing proprietary about the approach, but it is rare indeed to find an organization that follows these steps and hence, it’s a way to potentially differentiate and build a competitive advantage.

Step 1: Build a Survey

Step 2: Send it to Your Customers / Potential Customers

Step 3: Record Responses + Leverage them to Build What the People Want

That’s all there is to it.

And while you’re thinking, “He’s right! It’s so easy… I can do this in 15 minutes tomorrow and have the perfect roadmap to build something searchers will love,” you’re probably busy and might put this on the back burner for another time. Don’t do it! Implement now – even for just one keyword and one page. Even if you only get 2 responses! Heck, you can just fill it out yourself 4 or 5 times with how you think others might respond and it will still give you a better plan than 90% of what’s in the top 10 results for most queries.

Value proposition of SEOmoz PRO: the whole SEOmoz.org homepage:

Effectively Manage Your SEO

SEOmoz PRO -- dashboard SEOmoz PRO -- issue identification and getting recommendation

Analyze links and track key performance metrics in an efficient all-in-one dashboard.

Identify critical SEO issues and get actionable recommendations.

SEOmoz PRO -- monitor rankings and control traffic

Automatically monitor changes to your rankings and take control of your organic traffic.

More: SEOmoz PRO – Campaign software for easy SEO management

Search engine optimization wikipedia article:

By 2004, search engines had incorporated a wide range of undisclosed factors in their ranking algorithms to reduce the impact of link manipulation. Google says it ranks sites using more than 200 different signals.[11] The leading search engines, Google, Bing, and Yahoo, do not disclose the algorithms they use to rank pages. Notable SEO service providers, such as Rand Fishkin, Barry Schwartz, Aaron Wall and Jill Whalen, have studied different approaches to search engine optimization, and have published their opinions in online forums and blogs.[12][13] SEO practitioners may also study patents held by various search engines to gain insight into the algorithms.[14]

The related Talk:Search engine optimization contains also the following interesting information (emphasis is mine):

I agree there is no justification on including a section on notable seos if it excludes smart-traffic.co.uk who have been Googles no1 seo specialist for a very long timeand will continue to be so.

Some of these “notables” should be vetted as some of them are obvious shills for Google.

… The article for Rand Fishkin has been deleted 3 times – possibly at the request of the subject himself – Rand Fishkin.

… Yes, Rand Fishkin requested deletion of his biography.

… Actually Rand Fishkin is known as one of the most famous, or one of the most famous Google Shills out there. The last thing the world needs is a shill toted as an expert.

shill (noun, from Free Merriam-Webster Dictionary)

a : one who acts as a decoy (as for a pitchman or gambler)
b : one who makes a sales pitch or serves as a promoter

About Smart Traffic (smart-traffic.co.uk) (emphasis is mine)

Smart Traffic was established in early 2006 with the goal to become one the of the best known and most successful Search Engine Optimisation companies in the UK. Since that time, Smart Traffic have grown to become the largest SEO specialist in the UK and now employ over 170 employees Worldwide.

Such rapid growth has been possible due to Smart Traffic’s unrivalled results. With the largest Technical resource in SEO available to our clients, we are able to outrank and outperform all competitors.

Due to the unique business model of Smart Traffic, we are able to offer:

– SME’s affordable, high return SEO campaigns.

– High level SEO strategies for blue chip brand names to eclipse their competitors in search.

– Quality SEO services to resellers who want to offer an Industry leading SEO service.

SEOmoz Jobs (emphasis is mine):

We’re a small startup – there are only 35(ish) of us, but we’re globally known in the search field and have deep relationships around the world. We’ve got the reputation of a big player with the energy of a young, nimble organization and we love that – it lets us do very exciting things when we smell opportunity.

How SEOmoz and Majestic SEO Can Help Webmasters [SEO Theory, May 12, 2011] (emphasis is mine)

I generally refrain from analyzing SEO tools. There are too many of them, they generally don’t do anything useful, and few people care what my opinion of their favorite tools may be. Nonetheless, a couple of recent posts from Majestic SEO and SEOmoz caught my eye. Both posts include some statistics that, by themselves, don’t reveal anything useful but they do hint that some potentially useful data could be developed and shared by both services. I don’t believe either service publishes this kind of data in their members-only area but they are welcome to correct me on the point.

… [quite worth to read]

Rand Fishkin Interview [Sept 8, 2010]

Speaking of low risk SEO, why do you think neither of our sites has hit the #1 slot yet in Google for “seo”? And do you think that ranking would have much business impact?

We’ve looked at the query in our ranking models and I think it’s unlikely we could ever beat out the Wikipedia result, Google or SEO.com (unless GG pulls back on their exact-match domain biasing preference). That said, we should both be overtaking SEOchat.com fairly soon (and some of the spammier results that temporarily pop in and out). Some of our engineers think that more LDA work might help usto better understand these super-high competitive queries.

Analysis of "SEO" SERPs in Google
SERPs analysis of “SEO” in Google.com w/ Linkscape Metrics + LDA (click for larger)

In terms of business impact – yeah, I think for either of us it would be quite a boon actually (and I rarely feel that way about any particular single term/phrase). It would really be less the traffic than the associated perception.

When does the delta between paid search & SEO investment begin to shrink (if ever)?

I think it’s probably shrinking right now. Paid search is so heavily invested in that I think it’s fair to call it a mature market (at least in global web search, though, re: your previous question, probably not in local). SEO is ramping upwith a higher CAGR (Compound Annual Growth Rate) according to Forrester, so that delta should be shrinking.

Forrester Growth of SEO vs. Paid Search
via Forrester Research’s Interactive Marketing Forecast 2009-2014

What are the major differences between LDA & LSI?

They’re both methodologies for building a vector space model of terms/phrases and measuring the distance between them as a way to find more “relevant” content. My understanding is that LSI, which was first developed in 1988, has lots of scaling issues. It’s cousin, PLSI (probabilistic LSI) attempted to address some of those when it came out in 1999, but still has scaling problems (the Internet is really big!) and often will bias to more complex solutions when a basic one is the right choice.

LDA (Latent Dirichlet Allocation), which started in 2002, is a more scalable (though still imperfect) system with the same intuition and goals – it attempts to mathematically show distances between concepts and words. All of the major search engines have lots of employees who’ve studied this in university and many folks at Google have written papers and publications on LDA. Our understanding is that it’s almost universally preferred to LSI/PLSI as a methodology for vector space models, but it’s also very likely that Google’s gone above and beyond this work, perhaps substantially.

The “brand” update was subsequently described as being due to looking at search query chains. In a Wired article Amit Singhal also highlighted how Google looks for entities in their bi-gram breakage process & how search query sequences often help them figure out such relationships. How were you guys able to build a similar database without access to the search sessions, or were you able to purchase search data?

In a vector space model for a search function, the distances and datasets leverage the corpus rather than query logs. Essentially, with LDA (or LSI or even TF*IDF), you want to be able to calculate relevance before you ever serve up your first search query. Our LDA work and the LDA tool in labs today use a corpus of about 8 million documents (from Wikipedia). Google’s would almost certainly use their web index (or portions of it).

It’s certainly possible that query data is also leveraged for a similar purpose (though due to how people search – with short terms and phrases rather than long, connected groups of words – it’s probably in a different way). This might even be something that helps extend their competitive advantage (given their domination of market share).

When I got into SEO (and for the first couple years) it seemed like you could analyze a person’s top backlinks and then literally just go out and duplicate most of them fairly easily. Since then people have become more aware of SEO, Google has cracked down on paid links, etc. etc. etc. Based on that, a lot of my approach to SEO has moved away from analysis and more toward just trying to do creative marketing & hope some % of it sticks. Do you view data as being a bit of a sacred cow, or more of just a rough starting point to build from? How has your perception as to the value of data & approach to SEO changed over time?

I think your approach is almost exactly the same as mine. The data about links, on-page, social stats, topic models, etc. is great for the analysis process, but it’s much harder to simply say “OK, I’ll just do what they did and then get one more link,” than it was when we started out.

That analysis and ongoing metrics tracking is still super-valuable, IMO, because it helps define the distance between you and the leaders and gives critical insight into making the right strategic/tactical decisions. It’s also great to determine whether you’re making progress or not. But, yes, I’d agree that it’s nowhere near as cut-and-dried as it once was.

The frustrating part for us at SEOmoz is we feel like we’re only now producing/providing enough data to be good at these. I wish that 6-7 years ago, we’d been able to do it (of course, it would have cost a lot more back then, and the market probably wasn’t mature enough to support our current business model).

Blekko has got a lot of good press by sharing their ranking models & link data. Their biggest downside so far in their beta is the limited size of their index, which is perhaps due to a cost benefit analysis & they will expand their index size before they publicly launch. In some areas of the web Google crawls & indexes more than I would expect, while not going to deeply into others. Do you try to track Google’s crawls in any way? How do you manage your crawl to try to get the deep stuff Google has while not getting the deep stuff that Google doesn’t have?

Yeah – we definitely map our crawls against Google, Bing and Majestic on a semi-regular basis. I can give you a general sense of we see ourselves performing against these:

  • Google – the freshest and most “complete” (without including much spam/junk) of the indices. A given Linkscape index is likely around 40-60% of the Google index in a similar timeframe, but we tend to do pretty well on coverage of domains and well-linked-to pages, though worse on deep crawling in big sites.
  • Bing – they’ve got a large index like Google, but we actually seem to beat them in freshness for many of the less popular corners of the web (though they’re still much faster about catching popular news/blogs/etc from trusted sourcessince they update multiple times daily vs. our once-per-month updates).
  • Majestic – dramatically larger in number of URLs than Google, Bing or Linkscape, but not as good as any of those about freshness or canonicalization (we’ll often see hundreds of URLs in the index that are essentially the same page with weird URL parameters). We like a lot of their features and certainly their size is enviable, but we’re probably not going to move to a model of continuous additions rather than set updates (unless we get a lot more bandwidth/processing power at dramatically lower rates).


the problem with maintaining old URLs became more clear when we analyzed decay on the WWW

In terms of reaching the deep corners of the web, we’ve generally found that limiting spam and “thin” content is the big problem at those ends of the spectrum. Just as email traffic is estimated to be 90%+ spam, it’s quite possible that the web, if every page were truly crawled and included, would have similar proportions. Our big steps to help this are using metrics like mozTrust, mozRank and some of our PA/DA work to help guide the crawl. As we scale up index size (probably December/January of this year), that will likely become a bigger challenge.

Entrepreneurship: The Full Story Of SEOmoz Told By Rand Fishkin [recorded and transcribed by Robin Good [Luigi Canali De Rossi] for his MasterNewMedia, April 8, 2011]

also available on the The Daily SEO Blog as The Story of SEOmoz [Rand Fishkin, April 13, 2011]

This is the story of SEOmoz, as I have heard it by sitting in the first row of a small but very attentive audience at the LUISS University in Rome, Italy. The storyteller is Rand Fishkin himself, the father and founder of an SEO company which has become synonym of high value tools and services, competence, and a natural inclination to share valuable information before asking something in return.

Individual video records on YouTube (useful in the case of slow loading of the full content with all video records and adjacent transcriptions):
SEOmoz Story Introduction (Duration: 1′ 15”)
The Origins of the SEOmoz Company (Duration: 5′ 20″, emphasis in bold is mine)

In 2004 things are kind of going terribly and I started the SEOmoz blog, because not only was I struggling financially, but I was struggling with SEO.

I realized that I was not great at it, I could not figure it out, it was very challenging.

Google makes it really hard to know and understand how to do SEO well. And that was one of the reasons why I built SEOmoz, as I thought that this practice of search engine optimization, should be easier. It should not be this black box, it should not be so hard to understand and so, SEOmoz was founded around this idea of transparency and sharing and information.

If you go back and read the blog posts from 2004, you are not going to be impressed. They are not particularly insightful. A lot of them were just silly day-to-day stuff.

Things like: “I found this article here, it says to do this thing. I tried it and it did not work“, but eventually it gets more popular, it starts growing, I get better at blogging, I get better at writing and building these resources and in 2005, after we produced some viral content, Newsweek Magazine, which used to be a very popular magazine in the United States – they had subscription of around eight / nine million subscribers weekly who pick up this magazine – they featured us in a big four / five page spread around SEO and that was a sort of a big coming out party.

We suddenly had a lot more media attention, a lot more clients contacting us instead of wanting us doing web design development services, they wanted us to do SEO. That kind of kicked us off and in fact the Newsweek article was the impetuous for me writing something called The Beginner’s Guide to SEOwhich is still a relatively famous and well-regarded resource.

The weird part is: The Beginner’s Guide to SEO, brought us more clients, more traffic, more value than the Newsweek article did. I thought: “Oh, Newsweek wrote an article, I would better write a guide to SEO for all the people who are going to come to the website from reading the magazine and want to learn more.”

It turned out the other way around. The guide itself is more popular.

How to Raise Venture Capital Money (Duration: 4′ 39″)
How to Manage a Board of Directors (Duration: 2′ 54″)
Business Marketing Strategies (Duration: 8′ 13″)
Lessons Learned (Duration: 5′ 9″)
Why Startup Culture and Mission Are Important (Duration: 1′ 59″)
How to Hire Good People (Duration: 1′ 41″)
How to Manage Big Challenges (Duration: 1′ 39″)
Marketing Tips for Startups (Duration: 10′ 43″)
Successful Web Marketing Channels (Duration: 10′ 13″)
Conferences and Events (Duration: 2′ 26″)
SEOmoz’ Financial Data (Duration: 4′ 34″)

… this is our revenue over the past four years and an estimate of this year’s revenue:

  1. 2007: Less than $1 million
  2. 2008: $600.000
  3. 2009: $1.2 million
  4. 2010: $5.7 million
  5. 2011: A little bit over $11 million – although it is possible there might be less

follow up: http://seopressors.org/ proposed to me, I don’t know how good it is, will try later, but first let’s see what it is:
Daniel Tan’s SEOPressor
Hi, I’m Daniel Tan and I have Created SEOPressor For You!
http://seopressors.org/: The MANDATORY WordPress SEO Plugin
> Top Priority Support, Free Life-time Updates
> SEOPressor Single-Site, One Domain $47 Only (one-time)
> SEOPressor UNLIMITED $97 Only (one-time) with Free Installation Service
>> Instant Download After Purchase
>> Compatible with WordPress 3.0
>> Requires Self-Hosted WordPress Sites
>> Widely Used on Niche Websites
>> Great for Large Business Sites
>> Works Extremely Well for Huge Autoblogs
– a 3d party expert review: Best SEO plugin SEOPressor for WordPress Blog [May 31, 2011]
also because it could probably be obtained free of charge as well:
How to Get a FREE SEOPressor plugin [May 19, 2011]

Microsoft on five key technology areas and Windows 8 –UPDATED [Dec 15, 2012] with full content up to delivery and change of command

After this update there are three detailed sections in the post:

  1. Julie Larson-Green’s and her team journey to build the new Windows 8 and Windows Live experience and getting to the top of the whole product group
  2. The follow-up posts to the original May 2011 one
  3. The original May 2011 post, which described the five key technology areas for the Windows 8 journey which Microsoft earlier (in H2 CY2009]
    – identified to transform the industry over the next few years, and
    – was committed to investing and innovating and leading

    These were:

    1. Natural user interface
    2. Natural language
    3. HTML and JavaScript
    4. Chip and form factors
    5. The cloud

As the end-result of that effort we had delivery shown in Microsoft Windows 8 – Launch Event Keynote Highlights [HD] [BuildingWindows YouTube channel, Oct 28, 2012]

Steven Sinofsky, President, Windows from [0:01] to [1:42]; Julie Larson Green, Corporate Vice President, Windows Program Management and Michael Angiulo, Corporate Vice President, Windows Planning, Hardware & PC Ecosystem [1:49] to [4:28]; Steve Ballmer, CEO from [4:30] to [6:43].

Then came:
Steven Sinofsky, ex Microsoft: The victim of an extremely complex web of the “western world” high-tech interests [this same ‘Experiencing the Cloud’ blog, Nov 13-20, 2012]
resulting also in Julie Larson Green’s promotion to the top job of leading all Windows software and hardware engineering, and in her membership in the Senior Leadership Team of Microsoft.

All this during quite a turbulent year at Microsoft, with quite a lot at stake, as shown in:
2012: A Year of Microsoft Milestones [Microsoft YouTube channel, Dec 12, 2012]

From Windows 8 to Surface to ‘Halo 4,’ 2012 was a momentous year for Microsoft. See how Microsoft is building its devices and services foundation for the year to come.

Going into the detailed sections below (including the linked posts in the second section) you will be able to judge for yourself how much Microsoft would be able to transform the ICT industry over the next few years. All this is, certainly, in addition to your own experience with Windows 8 on a proper touch device. Your own experience should also last as long as from two days to two weeks depending on how deep you are involved in the old way of doing things with mouse and keyboard, as well your degree of resistance to change.


1. Julie Larson-Green’s and her team journey
to build the new Windows 8 and Windows Live experience
and getting to the top of the whole product group

Update: When she started the journey:
Interview with Julie Larson-Green about Office 2007 and Windows 7 [BryZad YouTube channel, Nov 21, 2009]

Her Microsoft Office achievement is well described in the description of her 2008 Outstanding Technical Leadership award:

In revamping the interface of Microsoft Office 2007, Larson-Green effected a paradigm shift in one of the company’s most successful products.
“At first, no one wanted to change Office dramatically,” says Julie Larson-Green, who was tasked with overseeing a reimagining of the product’s end-user interaction and overall experience in the fall of 2003. Larson-Green’s leadership of Microsoft Office 2007’s redesign, the most radical revamp in the product’s history, required immense courage and conviction, to which this award attests.
A specialist in user-interface design, Larson-Green began working with Office in 1997, when she program-managed FrontPage. She subsequently helmed UI design for Office XP and Office 2003, which had evolved into a large organization of carefully negotiated compromises among the application suite’s various programs. Although Office’s great success was based on customer familiarity, the Customer Experience Improvement Program was indicating that users, while basically happy with the product, were increasingly either unaware of (possibly redundant) functions among Office’s different programs or frustrated by the amount of training necessary to use an astonishingly complex set of commands, dialogs, and interaction modes.
After deciding that Office needed to be made easier to use, Larson-Green’s team arrived at the elegant solution of the browsable Ribbon (or Office Fluent user interface) and its contextual cousins that united the product’s common capabilities and ease of experimentation. “The breakthrough,” Larson-Green says, “arrived with contextualizing the user interface and realizing that all of the product’s features didn’t have to be present all the time.”
SELLING THE REDESIGN
As development of Office 2007 proceeded, Larson-Green was confronted with the equally formidable task of selling the redesign across Office’s various programs. “Our biggest challenge,” she says, “was convincing people that we had an idea that would work.” Heavily invested in the earlier version, the Word, Excel, Outlook, and other organizations were initially reluctant to relegate control to an umbrella design team. Even more significant, Larson-Green had decided not to compromise the integrity of Office 2007 with the safety net of a “classic mode.”
It’s difficult to change the direction of a large organization at the best of times. It’s even more difficult when the goal is still incomplete. Larson-Green’s ability to argue her vision without necessarily being able to address myriad objections in detail is a remarkable trait in a data-driven culture such as Microsoft’s. One by one, however, the suite’s principals bought into the design as it was being tested and fleshed out.
Office 2007 shipped to nearly universal critical acclaim in January 2007, and Larson-Green was promoted to corporate vice president of program management for the Windows Experience. As with Office 2007, she plans to identify and solve customer problems, which will in turn drive a new design and its subsequent engineering. “In the old world,” she notes, “coding would start and design would kind of evolve with the coding.”
COLLABORATIVE EFFORTS
Flattered by her nomination for the Outstanding Technical Leadership Award, Larson-Green admits to shock at winning. “I was very pleased,” she says, “but also kind of embarrassed. I may have been the ringleader, but I couldn’t have done it without a lot of help from a lot of people.” She cites principal Office User Experience Team Program Manager Jensen Harris, Product Design Manager Brad Weed, General Manager Dave Barthol, and Test Manager Sean Adridge as key collaborators.
As for the prize, Larson-Green will treat its dispensation as a family affair. “Unless we all agree on one, we’re going to split the award and each pick a charity,” she says. “My seven-year-old son has already decided he wants to do something with animals. My fifteen-year-old daughter wants to do something with children. And my economist husband is doing all the research on how much money goes to programs versus administration.”
View Larson-Green’s official press profile.

Update: When she delivered:
Windows 8 Launch Live Event Part 1 – 25/10/2012 [LiveSports TechNews YouTube channel, Oct 25, 2012]

Windows 8 Launch Live Event Part 2 – 25/10/2012 [LiveSports TechNews YouTube channel, Oct 25, 2012]

After that an Interview with Microsoft’s Windows Program head, Julie Larson-Green [VentureBeat YouTube channel, Oct 25, 2012]

 

Update: before the promotion on Nov 12, 2012 to lead all Windows software and hardware engineering, and becoming member of the Senior Leadership Team of Microsoft, her official corporate biography [Microsoft, Oct 25, 2012] was as follows:

As corporate vice president of program management for Windows at Microsoft Corp., Julie Larson-Green oversees the design and delivery of the Windows operating system. Leading a team of technical engineers, her responsibilities include program management, design research and development of all international releases for Windows 8.
Larson-Green joined Microsoft in 1993 and has focused on technical design and development throughout her career. As a program manager in Development Tools and Languages, she was instrumental in several releases of Visual C++ for 32-bit operating systems and led the development of Microsoft’s first customizable integrated development environment for Windows. Moving to the Windows team, she was responsible for the Internet Explorer 3.0 and Internet Explorer 4.0 user experiences, including features related to the Web-integrated Windows desktop.
Continuing her focus on end-user software, Larson-Green joined the Office team in 1997 and led program management for Microsoft SharePoint and Microsoft FrontPage, including the early work in information worker servers. More recently, she has been responsible for leading the user interface design for Microsoft Office XP, Microsoft Office 2003 and the 2007 Microsoft Office system, which was lauded for its innovative reinvention of the user experience for productivity software. Before Windows 8, Larson-Green served as corporate vice president of Windows Experience for Windows 7, charged with leading the design and development of the Windows 7 OS.
Before joining Microsoft, Larson-Green was a senior development engineer at a Seattle-based company that created leading desktop publishing software. She has a master’s degree in software engineering from Seattle University and a bachelor’s degree in business administration from Western Washington University. A native of Washington state, she lives there with her husband, who is a university professor, and her two children.

This time she had her earlier key collaborator, Jensen Harris again to lead the program management of the user experience. Watch Harris’ presentation about The Story of Windows 8 [keynote on the UX Week, Aug 21, 2012, published on vimeo on Oct 25, 2012] as it is extremely important to the whole story:

UX Week 2012 | Jensen Harris | The Story of Windows 8 from Adaptive Path on Vimeo.

… [26:04] David Pierce said [in The Verge that] the Start Screen [of Windows 8] feels like a house made out of the Internet

The 5 Microsoft (previously Metro) design [style] principles he is talking about

  1. Do more with less, i.e. “fierce reductionism for every piece of UI”
  2. Authentically digital, i.e. “skeumorphism … removing decoration, ornamentation in a ‘Bauhaus‘ style … content over chrome … as in the [3d party] my History Digest application … icons reimagined as tiles”
  3. Pride in craftsmanship, i.e. “caring about every detail … getting details perfect … typographic grid underlying everything on the screen”
  4. Be fast and fluid, i.e. “… feel broadcast TV quality … as in the [3d party] Cocktail Flow application …”

  5. Win as one, i.e. “… have a product feel as designed by one person …”

With the goal of having one device for consumption and productivity

“New Microsoft led by principled design” as the result of all that 

About

Jensen Harris is Director of Program Management for the Windows User Experience Team.

He has worked at Microsoft since 1998. Prior to his current job, he was the Group Program Manager of the Microsoft Office User Experience Team, where his team redesigned the user interface for Office 2007 and Office 2010, adding the Ribbon, Live Preview, Backstage View, and other innovations.

Jensen attended Yale University and Interlochen Arts Academy, graduating with degrees in music composition.

For completeness some additional information from Jason Harris:
Windows 8 Consumer Preview: Product Demo [WindowsVideos YouTube channel, Feb 28, 2012]
Creating the Windows 8 user experience [Building Windows 8, May 19, 2012], highly recommended reading as gives all the background information, from Windows 1 released in 1985 upto Windows 8.
Windows 8 UI vision mockups from 2010 [a 3d party report from the UX Week video]
Jensen Harris: Windows 8′s lockscreen photos are design easter eggs [a 3d party report from the UX Week video]
8 traits of great Metro style apps [Channel 9 video of Jansen Harris’ Build2011 session, Sept 13, 2011]
Notes from BUILD – Day 1 – Big Picture Session 1 – Jensen Harris on 8 Traits of Great Metro Style Apps [Oct 6, 2011]
bldwin – 8 traits of great Metro style apps (notes in German about Jansen Harris’ Build2011 session) [Sept 13, 2011]
– regarding his earlier achievements see The Story of the Ribbon [Jensen Harris: An Office User Interface Blog, March 12, 2008] with video and slides embedded

And Jensen Harris had a team behind him as well. From that team Bonny Lau, Senior Program Manager, Windows User Experience Team had been the most active member. Here she is briefly talking (click to the link which follows) in a concise way about the same subject what Harris was talking about in great detail a year earlier:
8 traits of great Windows Store apps [Channel 9 video, Oct 18, 2012]

The 8 traits she is talking about:

  1. Microsoft design style
  2. Be fast and fluid (the Cocktail Fow 3d party app is shown again)
  3. Snap and scale beautifully
  4. Use the right contracts
  5. Invest in a great tile
  6. Feel connected and alive
  7. Roam to the cloud
  8. Embrace Microsoft design style principles

Her related materials:
Creating Metro style apps that stand out from the crowd [Windows 8 app developer blog, July 12, 2012] using the “Food with friends” application shown for Microsoft design style (in Jason Harris’ UX Week keynote as well to illustrate by him the Do more with less design style principle) as an example for development
Make great Windows Store apps (Windows) as her contribution to “Getting started” MSDN materials for developers
Designing UX for apps as contribution from her team to MSDN documentation with everything including samples to learn from
– earlier she was with Microsoft Project 2010 Scheduling Engine Project 2010: Bonny Lau [MSFTProject YouTube channel, Oct 28, 2009]

Finally here is a light talk of Bonny Lau about Windows 8 User Experience [MSUserCommunity YouTube channel, Sept 18, 2012]

Do design principles hinder innovation? Bonny Lau explains the reasoning behind theWindows 8user experience and urges developers to leverage design templates as a starting point (not an end point) for design, to push the envelope and build great looking apps.Learn how to make your app the best experience for your users at Generation App. Ready to Get Started? 1.Visit the Windows Developer Center for a myriad of sample, docs and guidelines: http://bit.ly/PwV3sE 2.Join the Generation App program and get a jumpstart building your Windows Store app. http://bit.ly/PwVi6R

Update: The Woman Charged With Making Windows 8 Succeed [MIT Technology Review, Dec 13, 2012]

In a Q&A, Julie Larson-Green explains why Microsoft felt it was necessary to rethink an operating system used by 1.2 billion people.

imageAs the head of Windows product development at Microsoft, Julie Larson-Green is responsible for a piece of software used by some 1.3 billion people worldwide. She’s also the person leading the campaign to introduce as many of those people as possible to Windows 8, the dramatic redesign of the iconic operating system that must succeed if Microsoft is to keep pace with a computing industry now shaped more by phones and tablets than desktop PCs.

Windows 8 throws out design features familiar to Windows users since 1995, swapping in simpler, bolder interfaces designed to be operated using a touch screen. The release of the Surface, a device somewhere between a tablet and laptop, also sees Microsoft break its tradition of leaving the building of hardware to other companies.

Larson-Green took over the role a few weeks ago, after Microsoft veteran Steven Sinofsky left amid rumors of personal disputes with other Microsoft executives. However, Larson-Green has long been a senior figure inside the Windows division and even took the lead on drawing up the first design brief for Windows 8. An expert in technical design, she also led the introduction of the novel, much copied “ribbon” interface for Microsoft Office, widely acknowledged as a major improvement in usability.

Larson-Green met last week with Tom Simonite at Microsoft’s campus in Redmond, Washington.


Why was it necessary to make such broad changes in Windows 8?

When Windows was first created 25 years ago, the assumptions about the world and what computing could do and how people were going to use it were completely different. It was at a desk, with a monitor. Before Windows 8 the goal was to launch into a window, and then you put that window away and you got another one. But with Windows 8, all the different things that you might want to do are there at a glance with the Live Tiles. Instead of having to find many little rocks to look underneath, you see a kind of dashboard of everything that’s going on and everything you care about all at once. It puts you closer to what you’re trying to get done.

Windows 8 is clearly designed with touch in mind, and many new Windows 8 PCs have touch screens. Why is touch so important?

It’s a very natural way to interact. If you get a laptop with a touch screen, your brain clicks in and you just start touching what makes it faster for you. You’ll use the mouse and keyboard, but even on the regular desktop you’ll find yourself reaching up doing the things that are faster than moving the mouse and moving the mouse around. It’s not like using the mouse, which is more like puppeteering than direct manipulation.

In the future, are all PCs going to have touch screens?

For cost considerations there might always be some computers without touch, but I believe that the vast majority will. We’re seeing that the computers with touch are the fastest-selling right now. I can’t imagine a computer without touch anymore. Once you’ve experienced it, it’s really hard to go back.

Did you take that approach in Windows 8 as a response to the popularity of mobile devices running iOS and Android?

We started planning Windows 8 in June of 2009, before we shipped Windows 7, and the iPad was only a rumor at that point.

I only saw the iPad after we had this design ready to go. We were excited. A lot of things they were doing about mobile and touch were similar to what we’d been thinking. We [also] had differences. We wanted not just static icons on the desktop but Live Tiles to be a dashboard for your life; we wanted you to be able to do things in context and share across apps; we believed that multitasking is important and that people can do two things at one time.

Can touch coexist with a keyboard and mouse interface? Some people have said it doesn’t feel right to have both the newer, touch-centric elements and the old-style desktop in Windows 8.

It was a very definite choice to have both environments. A finger’s never going to replace the precision of a mouse. It’s always going to be easier to type on a keyboard than it is on glass. We didn’t want you to have to make a choice. Some people have said that it’s jarring, but over time we don’t hear that. It’s just getting used to something that’s different. Nothing was homogenous to start with, when you were in the browser it looked different than when you were in Excel.

I wonder if you’re experiencing a little déjà vu, after previously leading a radical change to the interface for Office that initially met with complaints.

Yes! A lot of it is familiar. Some people who review it for a shorter period of time may not feel how rich it really is. We’re going for the over time impression rather than the first 20 minutes out of the box. We’ve found that the more invested you were in the old way, the more difficult the transition is, which is unfortunate because we first hear about everything in the tech press. Those are the ones that we knew up front are going to have the most challenge.

How long does it take people to adjust?

Two days to two weeks is what we used to say in Office, and it’s similar in Windows 8. We do a “living with Windows” program where we watched people over a series of months in their household. A lot of people don’t have trouble upfront.

What data do you have on how people buying Windows 8 are reacting?

When you sign into your Windows PC, one of the things you get asked is whether you’ll be part of our customer experience improvement program, and if you will, then you’re sending some data to us. Everyone gets asked that. We get terabytes and terabytes of data every day, and we can’t possibly use it all. So far we’re seeing very encouraging things. Over 90 percent of customers, from our data, use the charms and find the start screen all in the first session. Even if you’re a desktop user, over time there’s a cutover point around six weeks where you start using the new things more than the things you’re familiar with.

Microsoft has chosen to make its own hardware for Windows 8 with the Surface tablets. Why not leave that to the equipment manufacturers, as you’ve done in the past?

It was a way to test our hypothesis of a new way of working. It takes time for individuals to adjust, but it also takes time for the industry to adjust to new things—all the complicated things about the supply chain and issues like what sizes of glass gets cut. Surface is our vision of what a stage for Windows 8 should look like, to help show consumers and the industry our point of view on what near perfect hardware would look like. We believe in Surface as a long-term product, but we know that partners will have other innovations and ideas. One of the things that’s always been nice about Windows is choice—you’re not locked into one size, one shape, one color, one version.

Your predecessor, Steven Sinofsky, was widely credited with driving Microsoft to create Windows 8 through sheer force of will. Is that true?

Steven is an amazing leader and an amazing brain and an amazing person, but one person can’t do everything. It’s really about the team that we created and the culture that we created for innovation.

What changes now that you’re in charge?

Not a whole lot. I’ve worked directly with Steven for seven years but known him for the whole 20 years I’ve been at Microsoft. We think a lot the same about what the role of Windows is in society, what computing looks like, and getting people on board with that point of view.

Now that Windows 8 has been released, what are you and your team doing now?

We didn’t really slow down. There are always new technologies to think about that can be helpful to people.

Read more about Microsoft’s efforts to track users’ reaction to Windows 8: Microsoft Has Been Watching and It Says You’re Getting Used to Windows 8.


2. The follow-up posts to the original May 2011 one


3. The original May 2011 post

Windows 8 on ARM expected to appear by the end of 2011 [DIGITIMES, May 24, 2011] (emphasis is mine)

Tablet PCs that adopt Windows 8 and ARM-based processor are expected to appear by the end of 2011, but due to the platform lack of system performance, the platform will be mainly used for targeting the tablet PC market, according to sources from notebook players.

However, due to the combination still have several issues need to be resolved, most notebook players are taking a conservative attitude toward the new platform and will not rush to open up new projects for the related products.

Due to the Windows 8/ARM platform initially only testing in the tablet PC market, the sources believe the platform is unlikely to affect Intel’s position in the traditional PC segment, while the operating system is also unlikely to impact Google’s Android in the next one year.

Steve Ballmer: Microsoft Developer Forum [Microsoft, May 23, 2011] (emphasis is mine)

There is so much in the way of exciting innovations to look forward to over the next few years. At Microsoft, we’ve identified five things that we think will transform the industry over the next few years, and five areas where Microsoft, as a company, is committed to investing and innovating and leading. We think there will be other companies working in these areas. There are going to be opportunities for developers. Certainly we’re going to see a lot of competition. But these five key technology areas are the ones that I think more than anything else will make people look back and say, wow, computing is fundamentally simpler and easier to use, whether it’s on my phone, my PC, or my TV, than ever before.

The first one I’ll highlight for you is natural user interface. This is the notion that we really want to speak, wave and gesture, touch and mark on our computing devices. We want smart devices to work the way we work, to recognize us and our actions. Speech recognition, vision, handwriting recognition, touch interfaces, these are all part of the theme. And certainly whether it’s in phones, or what we’ve done with Kinect for large room, and living room type environments, for vision, and visual recognition are all emblems of the move in this direction.

The second big area of innovation will come in natural language. And the distinction is important. With natural user interface, we’re talking about voice, and vision, and touch. With natural language, we’re really asking ourselves the question, can we let you control your computing environment by expressing intent instead of specific commands. Today on a PC, it’s file open, blah, blah, blah, respond, reply, forward. I can’t just say to my device, get me ready for my trip to Tokyo.

The third area that I think will be increasingly important is HTML and JavaScript. We’ve made a big investment, obviously, in Windows and IE9 in our HTML and JavaScript support, but more and more of the world’s programmers will be fluent in these technologies in addition to whatever skills people have in C++ and C# and a variety of other important skills. But we have to recognize that more and more of the world’s talent will know these techniques. And whether it’s writing a website or a client application, or a server application, we want to build and develop the range of things that you can do not only using .NET, but also in using HTML and JavaScript. And, in fact, even how you can weave these things together into sensible programs in the future.

No. 4 is chip and form factors. Just think back three or four years ago and how quickly performance and size, and miniaturization and the move to ARM processors has happened. We’ve announced with Windows that we’re going to support system-on-a-chip architectures, not only from Intel and AMD, but also from a set of ARM vendors.

The form factor of the devices that we all use will continue to change. I think there will be a day in the future where it will be hard to distinguish a phone from a slate, from a PC. You literally will have displays that become paper thin and very easy to fold out form your phone. And at the same time, you’re going to get more and more PC-like capabilities in smaller form factor devices.

Last, but certainly not least is the cloud. And with both Azure, Windows Azure and SQL Azure, as well as Office 365, we’ve made a major step into the cloud. I’m sure I’ll get a few questions about Skype. Skype is just another representation of what we think is the importance of enabling a broad range of scenarios in the cloud. If those are the technologies, the flipside is to ask what can we do with them? They’re all great, but what will we, Microsoft, do and what do we expect the developers that we work with here in Japan, and across the world to do?

We’re obviously hard at work on the next version of Windows. Windows 7 PCs will sell over 350 million units this year. We’ve done a lot in Windows 7 to improve customer satisfaction. We have a brand new user interface. We’ve added touch, and ink, and speech. And yet, as we look forward to the next generation of Windows systems, which will come out next year, there’s a whole lot more coming. As we progress through the year, you ought to expect to hear a lot about Windows 8. Windows 8 slates, tablets, PCs, a variety of different form factors.

The browser is an area where we’ve been very active. Internet Explorer 9 is the fastest browser around because of the way that we’ve married it to Windows systems and allow essentially full exploitation of the hardware to have the fastest and most beautiful Web on the planet run on Windows systems.

We’ve integrated the browser into Windows more fully, so that you can put jumplists, and pin those to the taskbar on Windows. We’ve improved JavaScript performance. We’re running on downloads that are about five times the rate of customer acceptance that we saw on IE8, and when it comes to HTML and JavaScript, and the browser, there will be simply no one who pushes that, not Google, not Firefox, nobody will push that faster and harder than we push with IE.

Microsoft’s Ballmer says next-gen Windows systems due in 2012 [ZDNet, May 23, 2011]

During remarks at a developers conference in Japan on May 23, Microsoft CEO Steve Ballmer referred to the next version of Windows as “Windows 8.” He also said the next generation of Windows systems will be out next year.

To those not following Microsoft’s Windows saga closely, this may seem like a “so what” moment. But Microsoft execs have been studiously avoiding any references to the timing or naming of the next version of Windows to try to keep the specifics of the product as quiet as possible. Microsoft’s top brass has been avoiding calling the next version of Windows “Windows 8″ publicly, preferring instead to call it “Windows Next.” (Internally, a number of  Microsoft job postings and leaked slides have referenced “Windows 8,” however.”

Update: OK, believe it or not, the “official” response is Ballmer’s statement isn’t what it seems to be… Sent from a Microsoft spokesman earlier tonight:

““It appears there was a misstatement. We are eagerly awaiting the next generation of Windows 7 hardware that will be available in the coming fiscal year.  To date, we have yet to formally announce any timing or naming for the next version of Windows.”

And, as usual, there are many ways to interpret these remarks. Is the next-generation Windows release nothing but Windows 7 with new paint? Windows 8 not the final name for the next version of Windows? (The final name possibly being something other than Windows 8 is something that I’ve heard from my tipsters…) You be the judge….

Chromebook / box with Citrix Receiver going against Microsoft

Update:
– “Asus is more hesitant about another new entrant to the notebook space: Google Chromebooks. Google introduced these lightweight Web-centric devices in May with Samsung and Acer’s support. Asus works with Google on its tablets and smartphones but Shih said the manufacturer is still assessing the Chromebook market.
Asus: Super-Thin ‘Ultrabooks’ Can Capture 50% Of Notebook Market [July 29, 2011]
– “Chromebooks work best for people who live on the web – spending most of their time in a browser using web applications. We expect many consumers as well as many businesses and schools to greatly value the speed, simplicity and security this operating system provides.
Internet at the heart of everything: Q&A with Chrome OS [July 15, 2011]

Chromebooks Are Doomed to Fail [PCWorld, May 15, 2011]

The Chromebook is not any lighter or smaller than a standard netbook. It boots up faster, and has longer battery life than a full notebook, but so do most netbooks. The difference between the Chromebook and a standard netbook is that with a netbook you can do everything you can do with a Chromebook, and you can still do all of things you normally do with a PC.

Essentially, buying a Chromebook is like buying a television that is only capable of delivering some of the channels, even though there are televisions available for the same price that can give you all of the channels. The Chromebooks are going to retail from $350 to $500. Funny thing about that–at BestBuy.com there are 15 netbooks listed that range from $230 to $530.

Google, Intel set to upgrade Chromebook performance [July 20, 2011]

Google plans to upgrade the Chromebook design from originally adopting Atom N570 processors to mainstream Core i series processors to significantly boost system performance, while strengthening the machine’s security. The plan has already received support from Intel with the company giving a 10-20% discount for related processor quotes, according to sources from notebook players.

In addition to Samsung and Acer, there are already several notebook vendors including Asustek Computer, already considering to join the upcoming Chromebook upgrade project and are set to launch related products after the fourth quarter, the sources noted.

The sources pointed out that despite the 12-inch Chromebook is mainly being pushed for its cloud computing capability, with most work being done by the back-end servers, since their hardware specifications are the same as a netbook, while being US$50-100 more expensive than a Windows 7-based netbook, and having an unattractive industrial design, the overall price/performance ratio is disappointing.

Therefore, Google has recently started notifying its partners that Chrome OS already has an obvious upgrade path for its hardware specifications and related security, while the company is also providing assistance with marketing and is aiming to push the product’s price range to above US$500 and increase its attractiveness in the market.

However, some notebook vendors believe Android’s success in smartphones and tablet PCs does not guarantee the success of Chromebook, and Microsoft still has an un-touchable position in the PC industry. Since most consumers are already used to Windows, while Windows has great software compatibility, if Chromebooks cannot outmatch Windows products on pricing, while maintaining standard performance demands, consumers are unlikely to accept a brand new operating system in the short term.

New computers for the browser-based world [May 11, 2011] (emphasis is mine)

For businesses and schools, we’re offering a subscription that includes the Chromebook, a web-based management console and 24/7 support from Google starting at $28 per month for businesses and $20 per month for schools. … to date the innovation has stopped at the PC. We still worry about crashes, long boot times, software incompatibilities, endless program updates, outdated hardware, viruses, and all the other headaches associated with a personal computer. What’s more, managing a PC is expensive when you include setup, maintenance and security – not to mention the lost productivity when things break. According to Gartner Research, the total cost for a desktop computer is between about $3,300 and $5,800 per year and laptops can cost even more.

Chromebooks relieve these pains. They boot in 8 seconds, resume instantly and have WiFi and optional 3G so that users can always stay connected. Since Chromebooks update automatically, the software gets better over time, delivering the latest features as soon as they are released. Chromebooks are the first PCs designed with ongoing security threats in mind, which is critical for businesses. Chromebooks employ the principle of “defense in depth” to provide multiple layers of protection, including sandboxing, data encryption, and verified boot – to help keep your organization safe.

We also recognize that organizations want to centrally manage their Chromebooks, so we’re happy to announce we’re making this easy, with the ability to control accounts, applications and devices from a single web-based console. The new Chromebooks pricing model and simple, central maintenance means that Chromebooks are far more cost-effective than traditional PCs. Companies can save thousands of dollars per employee each year!

… 85% of new software vendors will be focused on developing web-based apps by next year … Chromebooks work with your existing web apps, browser-based apps behind the firewall and we even have a solution for your desktop applications via our collaboration with Citrix. By navigating to an HTML5-based version of Citrix Receiver, users can access virtualized applications such as Adobe® Photoshop® right from the browser.

We believe that a combination of web and virtualized apps will suit most business users today; in fact, a recent survey we commissioned found that two-thirds of companies could already switch the majority of their employees to an exclusively browser-based computing environment.

Learn more about Chromebooks for Business and how pilot customers are using them.

Update: Another step in the browser-based desktop revolution [May 25, 2011] (emphasis is mine)

Today we’re excited that Citrix has announced Citrix Receiver for Chromebooks, based on HTML5 standards – coming soon to the Chrome Web Store. This is great news for businesses and schools that want to take advantage of a modern browser-based operating system while preserving access to their existing desktop applications. At I/O for instance, we demonstrated Citrix Receiver running on Chromebooks and accessing a virtualized version of Adobe® Photoshop® right from the browser.

Now Chromebook users can not only access the huge number of business web apps and browser-based applications behind the firewall, but through Citrix Receiver they can also access an exhaustive set of desktop applications. This means that organizations don’t have to repurchase or rewrite existing applications when moving to Chromebooks, and they can offer Chromebooks to a wider range of users. We’re working to make the browser the platform for business computing, and we’re happy to be collaborating with Citrix on this transformation.

Update: Citrix Receiver Now Helps Business say “Yes” to More than 1 Billion End User Devices — Self-Service Access to Any SaaS, Web and Windows App [May 25, 2011]

Today at Citrix Synergy™, where virtual computing takes center stage, Citrix Systems announced multiple new updates to Citrix Receiver™, its universal software client that allows companies to deliver corporate apps, desktops and data to any device, whether corporate or employee owned. With today’s announcement, Citrix Receiver is now verified to support more than 1,000 different PC and Mac models, 149 different smartphones, 37 tablets, 10 different classes of thin clients, and all major device operating platforms, including new environments like iOS, Android, webOS and Google ChromeOS. With consumer devices flooding the workplace, Citrix Receiver now gives businesses around the world the power to say “yes” to more than 1 billion end user devices, knowing that they can deliver a secure, high-definition experience to virtually any device in the world.

In addition to offering complete choice and flexibility to use the devices they choose, Citrix Receiver gives end users full self-service choice of the apps they want to run, when Windows, web or SaaS based. The ability to seamlessly interact with all their desktops, apps and data on any device, from any location, effectively gives users 24×7 access to a “personal cloud” where anything they need is just a click or touch away.

By delivering this level of choice and flexibility, customers can achieve increased business productivity and transform IT from managing internal systems to on-demand service delivery. When combined with key Citrix infrastructure products like Citrix XenDesktop®, Citrix XenApp™ and the new NetScaler® Cloud Gateway™, Citrix Receiver provide the essential components to embrace this shift and allow employees to work anywhere, anytime, on any device.

Supporting Partner Blogs

Expert Blogs

A new kind of computer: Chromebook [May 11, 2011] (emphasis is mine)

A little less than two years ago we set out to make computers much better. Today, we’re announcing the first Chromebooks from our partners, Samsung and Acer. These are not typical notebooks. With a Chromebook you won’t wait minutes for your computer to boot and browser to start. You’ll be reading your email in seconds. Thanks to automatic updates the software on your Chromebook will get faster over time. Your apps, games, photos, music, movies and documents will be accessible wherever you are and you won’t need to worry about losing your computer or forgetting to back up files. Chromebooks will last a day of use on a single charge, so you don’t need to carry a power cord everywhere. And with optional 3G, just like your phone, you’ll have the web when you need it. Chromebooks have many layers of security built in so there is no anti-virus software to buy and maintain. Even more importantly, you won’t spend hours fighting your computer to set it up and keep it up to date.

Chromebooks will be available online June 15 in the U.S., U.K., France, Germany, Netherlands, Italy and Spain. More countries will follow in the coming months. In the U.S., Chromebooks will be available from Amazon and Best Buyand internationally from leading retailers.

Day 2 kicked off with the announcement that Chrome is now at 160M active users, up from 70M last year. Watch for more announcements from the Chrome Web Store, Angry Birds, Chromebooks and Chrome In-App Payments.

There is a 30”+ talk about “the power of the web” till [39:00] (with most emphasis on WebGL based things including hardware accelleration) then going to Chrome OS and fast [40:35] moving to Chromebook, then again to Chrome OS which is ending at [52:20], then the use case of using Chromebooks disconnected, hundred of apps on Chrome webstore already working offline, Google Apps coming in June 15, then [54:10] Samsung, Acer (with price starting at $349), Intel etc. partners. From [57:40] the businesses and education institutions part. Along Citrix mentioning VMware as well. At [1:01:30] showing Chromebox as well. Complete End-to-End Offering for businesses. $28/month price complete, changing fundamentally the way computing is … Order directly from Google. … every of our attendee gets a free Chromebook. Ending at [1:08:10]. But no Chrome In-App Payments.

Samsung Chromebook Series 5

Intel® ATOM Processor N570 [1.66Ghz]
2GB Standard System Memory [DDD3]
16GB SSD (mSATA)

White / Titan Silver
WiFi / 3G
$429 / $499

SuperBright 12.1” LED display [1280×800]

Battery Hour Life: Up to 8.5 hours (Google Chrome Battery Test)

image image

SlashGear 101: Google Chromebook [May 11, 2011]

This summer, Gmail, Google Calendar and Google Docs will all get “offline support” for Chrome OS – i.e. you’ll be able to use them without a data connection. Netflix and Hulu streaming video support will also be added, though you’ll obviously need to be online for those.

Google is also readying a desktop version, the Google “Chromebox”, about which little is known but that we’re assuming will bring the same Chrome OS experience to users not concerned about mobility. Since part of Chrome OS’ charm is that users can log in on any machine and get the same experience, schools and businesses could have a combination of Chromebox and Chromebook hardware and staff/students share them depending on where they were going to be working.

Google Chrome OS “Chromebook” Detailed [May 11, 2011]

Hands On With Google’s New Chromebook [May 12, 2011]

Citrix, VMware Bringing Enterprise Apps To Google Chromebooks [May 11, 2011] (emphasis is mine)

Citrix Receiver acts as a front door for enterprise applications stored on XenDesktop and XenApp servers in the customer’s data center, delivering them to notebooks, tablets and mobile devices.

Citrix Receiver For Chrome, currently in beta and slated for launch this summer, will do the same for Chromebooks, Google’s new Web optimized PCs, according to Gordon Payne, senior vice president and general manager of Citrix’s Desktop Division.

Payne says his company has plenty of relevant experience in delivering enterprise applications to Google Chromebooks. “For the past 10 years we’ve been lifting apps up off the desktop, centralizing them in the data centerand delivering them as a service,” he said.

Citrix is looking forward to introducing Chromebooks to its customer base, Payne said. During the Q&A, Payne was asked how this might affect Citrix’s Windows business, a fair question since Citrix is one of Microsoft’s largest partners.

“Users should be able to use whatever device makes sense to them,” Payne responded. “Bring Your Own Device feeds into this philosophy. Chromebooks are a compelling argument for a new class of hardware, and we at Citrix love diversity.”

VMware, meanwhile, is building a similar version of VMware View that works in the browser, Rajen Sheth, group product manager for Chrome For Business, said in the Q&A. While Citrix has a timetable for its release of Receiver For Chrome, VMware is still in the midst of working on its implementation, Sheth said. VMware did not have a representative at the Q&A.

The virtualization partnerships show that Google is stepping up its efforts to crack into enterprise accounts. Most companies can switch 75 percent of their users to Chromebooks today by using Web applications and virtualization, Sundar Pichai, senior vice president of Chrome, said in a Wednesday keynote at Google I/O in San Francisco.

New Citrix Receiver Lets Chrome Notebook  Users Run Windows Business Apps [Dec 7, 2010]
Citrix joined Google on stage at its live Google Chrome event in San Francisco to preview the new Citrix Receiver for Chrome Notebooks.

Today, Citrix Systems (NASDAQ: CTXS) joined Google on stage at its live Google Chrome event in San Francisco to preview the new Citrix Receiver™ for Chrome Notebooks (see today’s related announcement blog). Available soon as a free app on the Google Chrome Web Store, Citrix Receiver will allow Google customers to run their existing Windows business applications directly on the new web-based Chrome notebooks with a native user experience, fast performance, and full enterprise security. As a result, Google customers will be able to enjoy all the benefits of a fast, lightweight, web-based notebook computer for personal use, and still have easy, secure access to their Windows-based work applications, desktops and data at any time (see visuals).

Citrix Receiver also represents a win for corporate IT departments, allowing them to deliver existing enterprise applications and desktops as a secure, on-demand service to Chrome notebook users with no new support requirements – and no compromise in security or user experience. Because Citrix Receiver supports all popular security standards, corporate data is safe at all times. End users also enjoy a rich, high-definition experience for all apps and desktops, thanks to the built-in Citrix HDX™ technology.

Citrix Receiver is a key part of the Citrix end-to-end virtual computing strategy, designed to simplify computing for IT, and give end users more choice and flexibility in how and where they work. It is available today for a wide variety of end user devices, including PCs, Macs, laptops, thin clients, tablets and smartphones.

Pricing and Availability
Citrix Receiver for Chrome Notebooks is scheduled to be available as a free app from the Google Chrome Web Store in the first half of 2011. Citrix Receiver works by connecting to the Citrix XenDesktop® or Citrix XenApp™ servers already running in the datacenters of most corporate customers. Every day, XenDesktop and XenApp deliver virtual desktops and applications to 100 million corporate employees at more than 230,000 enterprises worldwide, including 99 percent of the Fortune 500.

Sundar Pichai, Vice President of Product Management for Google
“The web has become an incredibly powerful platform for innovation, allowing users to do much more online than ever before. We’re happy to work with Citrix to give Chrome notebook business users a way to enjoy all the benefits of the web, while still having the flexibility to access important business applications in their work environments.”

Gordon Payne, Senior Vice President and General Manager at Citrix
“The new Chrome notebook breaks new ground in simplifying end user computing devices. Citrix is pleased to be working with Google on this exciting new technology and promise it holds for our joint customers.  Together, we can ensure that these new devices are enterprise-ready, allowing our customers to securely run their existing corporate applications on their Chrome notebooks. Extending Citrix Receiver support for Chrome notebooks will provide virtual computing solutions that simplify computing for IT, and enable productive, virtual workstyles for users.”

Related Links and Announcements:

Google Search Finds Citrix Receiver for Chrome Notebooks [Dec 7, 2010] (emphasis is mine)

Citrix has just announced Citrix Receiver for Chrome Notebooks. The new Google OS and reference design for notebooks is designed to run apps entirely from the web. That’s relatively easy for web and SaaS apps, but for the thousands of corporate Windows apps Google needed another answer in order to make the new platform useful as a business tool or even a consumer device with casual access to work apps. The answer came from talking to CIO’s and IT Pros at companies who would need to endorse the device, ” add Citrix Receiver ” was an obvious solution. ( You can also find the answer by Google searching run windows apps from any device or any variation of that )

Google’s announcement today included a keynote demonstration of Citrix Receiver accessing a number of Microsoft applications hosted on XenApp. This Receiver for Chrome Notebooks is also unique in that it’s based on HTML5 and requires no download and install like most Receivers. It’s very cool, just click the icon, log-on and everything required comes down from the web. The new Web Receiver interface is presented including the ability to search, subscribe and select favorite apps. The apps launch as expected and the performance is great. What’s different is the apps run maximized inside the Browser vs conventional windowing, and task switching is accomplished through the browser tabs. Check out the demo at http://www.youtube.com/watch?v=Xjb5kFLOz_Q&feature=channel fast forward to Minute 21 [ending at 39:00].

Video footage from the Chrome event on 12/07/10. Sundar Pichai, Product Management Lead for Chrome gives update on Chrome OS and announces the pilot program.

Some screen shots of Citrix Receiver for Chrome Notebooks:

The Citrix Receiver will also be included in Google’s Chrome Web Store when its available in 1H2011. Users will only need a company provided link to get to a log-on page making app delivery simple for IT.

Google’s entry into the OS market is interesting and fits well with their vision to host everything on the web. Users get device independence, and IT meets the objective to minimize support for distributed end point devices. With Google Chrome for Notebooks, Google will provide automated updates to the OS as required, and security exposures are minimized because nothing can be installed locally. Add Citrix Receiver and IT should be happy. I think user adoption will depend on the devices that hardware vendors come up with. These new Notebook devices will compete with Tablets in the limited task mobility segment and full function Windows 7 Netbooks & Laptops on the other side, time will tell…

Embrace the consumerization of IT – Citrix Receiver gives you the power to say ‘yes’ [Dec 7, 2010] (emphasis is mine)

Today Citrix demonstrated Citrix Receiver for Google Chrome Notebook at Google’s launch event in San Francisco (watch the replay). Citrix Receiver gives people access to their enterprise apps using any device, anywhere – enabling IT to embrace consumerization and make their employees more productive.

Consumerization will force more IT change over the next few years than any other technology or trend. The phrase “consumerization of IT” stems from people’s experiences as consumers of technology at homesuch as using simple online self-service applications, or using mobile devices to instantly access their information and it is changing the way all of us think about computing. Computing has become integrated into our everyday life and is not just for work activities, and it is changing our expecations of what computing at work should be. This is a big trend – something that none of us as individuals can control. As an IT industry, we have no other option but to embrace this trend, and plan for how consumerization will impact computing for people at work.

If you are unsure about what consumerization of IT means for computing at work, here are few things that you need to know:

  1. End users will have a choice of device – they will be able to use a device of their convenience to get access to their apps. They may be company owned or may be employee owned. You may have users using their corporate Windows device and have other devices that you do not have full control over.
  2. Users will be able to use the same device for their personal and corporate appssimultaneously.
  3. Users will prefer a self-service experience to access their apps

These three requirements are almost impossible to address with traditional distributed computing within IT environments. Instead, IT needs to do something different.

Google’s announcement regarding the Chrome OS notebook and Chrome OS Web store is a good example of the choice that people have for computing at home. I attended the Google’s launch event live and found the demos quite interesting – seeing how end users can add their apps to their notebook and run them on-demand. It means that there will be another device that someone at work will show up alongside their corporate PC to access their Windows applications.

This is a problem for IT. Enterprise apps and data were never built for the kind of flexibility and security challenges this kind of user choice and mobility introduces. Many IT teams are now struggling to embrace this “consumerization of IT.”

Citrix’s solution to this problem is virtual apps and desktops along with Citrix Receiver – both designed to deliver any enterprise app or desktop to any user, anywhere. The Majority of these are Windows based apps and soon to be adopted Windows 7 desktops. Citrix Receiver, which is available for virtually every device – Windows PCs/laptops, Macs, iPhones, iPads, Android smartphones/tablets, Blackberry, and Windows Mobile, offers users a high performance access to any enterprise app, anywhere.

Today, Citrix demonstrated an early version of Receiver for Chrome OS Notebook at the Google launch event, showcasing access to enterprise Windows based applications securely with a high definition experience. As with all versions of Citrix Receiver, customer demand is strong, making Receiver a “must have” app for new consumer devices. Google’s enterprise customers asked them to partner with Citrix Google Notebooks can have access to enterprise apps & desktops – most of them based on Microsoft Windows. Citrix Receiver for Chrome Notebook will be available in first half of 2011. Users will be able to download it from Google Chrome Web Store.

So, the next time when an employee says they wish to use one of their devices to access the enterprise apps, you no longer have to say ‘no’. With Citrix Receiver, you have the ability to say ‘yes’ to any device – offering a rich high definition application access to all your employees anytime, anywhere.

Citrix Receiver, XenApp and the Windows Application Delivery Infrastructure

Citrix Receiver is a lightweight software client that makes accessing virtual applications and desktops on any device as easy as turning on your TV.

Much like a satellite or cable TV receiver in a broadcast media service, Citrix Receiver allows IT organizations to deliver desktops and applications as an on-demand service to any device in any location with a rich “high definition” experience.

As long as employees have Citrix Receiver installed, IT no longer has to worry about whether they are delivering to a PC in the office, a Mac at home, or an iPhone on the road. This approach radically simplifies desktop management for IT and gives end users far more flexibility and independence in how and where they work.

XenApp is the central software component of the Citrix Windows Application Delivery Infrastructure. The goals of XenApp and the Citrix Windows Application Delivery Infrastructure are to deliver on-demand applications to both physical and virtual desktops, and to determine and provide the best method of delivery. XenApp offers three methods for delivering applications to user devices, servers, and virtual desktops:

  • Server-side application virtualization: applications run inside the Data Center. XenApp presents each application interface on the user device, and relays user actions from the device, such as keystrokes and mouse actions, back to the application.
  • Client-side application virtualization: XenApp streams applications on demand to the user device from the Data Center and runs the application on the user device.
  • VM hosted application virtualization: problematic applications or those requiring specific operating systems run inside a desktop in the Data Center. XenApp presents each application interface on the user device and relays user actions from the device, such as keystrokes and mouse actions, back to the application.

A typical deployment is shown below. Delivery Services 1.0 provides the infrastructure that enables the next generation of Receiver functionality. The figure shows the architecture of Delivery Services and the interactions between the components in a typical environment.

Citrix Receiver—manages plug-ins, including the Self-service Plug-in, on the user device:

  • Online Plug-in/Offline Plug-in—enable users to access their subscribed resources. These plug-ins are used for application streaming when executables for applications are put in profiles and stored on a file server or Web server (the App Hub) which simplifies application delivery to users by virtualizing applications on client devices. To support streaming applications to the server, install either the online plug-in or Web plug-in on user devices. These applications must be published as “stream to server.” The Citrix offline plug-in is the new name for the Streaming Client. To support streaming applications to the user’s desktop (“stream to desktop”), as well as offline access to applications and dual-mode streaming, install both the offline plug-in and online plug-in on user devices. With dual mode streaming (“streamed if possible, otherwise accessed from a server”) XenApp is configured to stream software to client devices; otherwise, virtualize from a XenApp server. If launching a streamed application fails on the client device, XenApp seamlessly streams the application to the server and virtualizes the application on the client device from XenApp.
  • Self-service Plug-in (formerly Dazzle)—presents the resources and services available across the configured stores. Enables users to subscribe to and organize their resources. Corporate employees get 24 × 7 self-service access to the applications and content that they need to work productively. The Citrix Receiver self-service view offers a rich, intuitive user experience that requires no training. Citrix Receiver and the Self-service Plug-in make self-service IT a reality, giving users instant access to their resources and bringing the economics of the Web to enterprise IT.

Merchandising Server—delivers plug-ins and configuration updates to Citrix Receiver. Uses the Authentication Service to identify users and provides the administrative interface for configuring, delivering, and upgrading plug-ins for your users’ computers..

Delivery Services—integrates with your existing XenDesktop and XenApp infrastructure and employs Microsoft .NET technology running on Internet Information Services (IIS) and, optionally, Microsoft SQL Server to provide authentication and resource delivery infrastructure for Citrix Receiver and the Citrix Self-service Plug-in. Delivery Services consists of three services:

  • Authentication Service—authenticates users to the Citrix servers using explicit authentication and stores user credentials. Once a user’s credentials have been validated, the Authentication Service handles all subsequent interactions with the servers to ensure that users do not need to log on again.
  • Stores—retrieve user credentials from the Authentication Service to authenticate users to the Citrix servers. Enumerate the resources currently available from the configured servers and send the details to the Self-service Plug-in so the resources can be displayed to users.
  • Database—stores details of user subscriptions plus associated shortcut names and locations. When a user accesses a store with application synchronization enabled, the subscribed resources on the user device are automatically reconfigured so that the configuration is the same as that stored in the Delivery Services database.

Citrix Delivery Services Management console—enables administrators to create and manage stores and the Authentication Service.

Citrix servers—provide desktops, content, and online and offline applications.

The interactions that take place between the components in the environment shown above are described below.

  • A user logs on to a device; Citrix Receiver starts automatically.
  • If the user has not yet subscribed to any resources or if the user opens Citrix Receiver, the self-service view is displayed.
  • The user logs on to the stores that the Self-service Plug-in is configured to contact.
  • The Self-service Plug-in sends the user’s credentials to the Authentication Service.
  • Merchandising Server uses the Authentication Service to identify the user and sends any configuration updates specified by the administrator to Citrix Receiver.
  • The Authentication Service authenticates the user to the Citrix servers that provide the resources in the stores.
  • Using the Authentication Service to provide the user’s credentials, the stores contact the Citrix servers, obtain details of the available resources, and send this information to the Self-service Plug-in.
  • The Self-service Plug-in aggregates the resources from all the stores, but only those resources that the administrator has made available for this particular user are displayed in Citrix Receiver.
  • When application synchronization is enabled for a store, the store queries the Delivery Services database and sends details of the user’s subscribed resources and associated shortcuts to the Self-service Plug-in as part of the resource enumeration process.
  • The Self-service Plug-in compares the configuration received from the store with the configuration of the current device to determine whether the user has subscribed or unsubscribed from any resources, or modified any shortcuts on any other devices.
  • If any differences are detected between the user’s subscriptions on the current device and the configuration stored in the database, the Self-service Plug-in automatically adds and removes resources and moves or renames shortcuts to resolve the differences.
  • The user subscribes to and organizes resources in the self-service view of Citrix Receiver.
  • Shortcuts to the subscribed resources are added to the user’s device.
  • Any offline applications to which the user subscribes are downloaded from the XenApp farm to the user device by the Offline Plug-in. Once downloading is complete, the applications are available for use.
  • If the user subscribes to a Citrix Online product, the associated client application is installed locally on the device. If configured by the administrator, the user may also be prompted to create a Citrix Online account or request an account from the IT department.
  • When application synchronization is enabled for a store, the Self-service Plug-in notifies the store of any changes to the user’s subscribed resources and associated shortcuts. The store updates the database with the new configuration.
  • The user clicks on a shortcut to a subscribed resource.
  • For offline applications, the application starts and runs locally within an isolation environment.For desktops, content, and online applications, the Online Plug-in initiates a session with a XenDesktop or XenApp server providing the selected resource.

More information:

Designing a XenApp Deployment (inside XenApp 6 for Windows Server 2008 R2) [April 11, 2011] where detailed architecture diagrams and explanations are provided as well:

image

A XenApp deployment consists of three deployment groups: user device (represented in this diagram by Citrix Receiver and Citrix Dazzle), Access Infrastructure, and Virtualization Infrastructure.

  • On the left of this diagram are Citrix Dazzle and Citrix Receiver, which represent the set of devices on which you can install client software. Citrix Dazzle provides your users with a selection of applications you have made available to them. Citrix Receiver manages the client software plug-ins that enable your users to interact with virtualized applications. When designing a XenApp deployment, you consider how your users work, their devices, and their locations.
  • Access Infrastructure represents secure entry points deployed within your DMZ and provide access to resources published on XenApp servers. When designing a XenApp deployment, you provide secure access points for the different types of users in your organization.
  • Virtualization Infrastructure represents a series of servers that control and monitor application environments. When designing a XenApp deployment, you consider how applications are deployed based on your user types and their devices, the number of servers you need, and which features you want to enable in order to provide the support, monitoring, and management your organization requires.

The following diagram shows the access infrastructure in greater detail.

image

In this access infrastructure diagram:

  • All of your users use Citrix Dazzle to choose applications they want to run. Citrix Receiver plug-ins run them.
  • Onsite users within your corporate firewall interact directly with the XenApp Web and Services Site.
  • Remote-site users access applications through sites replicated by Citrix Branch Repeater.
  • Off-site users access applications though secure access, such as Access Gateway.
  • The Merchandising Server makes available self-service applications to your users through Citrix Dazzle.
  • EasyCall Voice Services enables your users to initiate telephone calls by clicking on telephone numbers displayed in their applications.
  • The XML Service relays requests and information between the Access Infrastructure and the Virtualization Infrastructure.

The following diagram shows the virtualization infrastructure in greater detail.

image

In this virtualization infrastructure diagram:

  • The XML service relays information and requests.
  • Based on Active Directory profiles and policies, the XenApp servers invoke the correct application delivery type for the user. The XenApp servers provide server-side application virtualization and session management. Session and deployment configuration information are stored in data collectors and a central data store represented by the deployment data store.
  • The App Hub provides Streamed Application Profiles, which are client-side virtualization applications housed in your enterprise storage.
  • The VM Hosted Apps server isolates problematic applications inside a seamless desktop, which, depending on the user profile, can be virtualized on the user device or on the server. The desktop images are provisioned through Provisioning Server. Session and server configuration information are stored in the deployment data store.
  • Provisioning Services delivers desktops to servers, which are stored as desktop images in your image repository.
  • SmartAuditor provides session monitoring. Recorded sessions are stored in your enterprise storage and configuration information is stored in the deployment data store.
  • Service Monitoring enables you to test server loads so you can estimate how many servers you need for your deployment and to monitor those servers once they are deployed.
  • Power and Capacity Management enables you to reduce power consumption and manage server capacity by dynamically scaling the number of online servers.
  • Single Sign-on provides password management for virtualized applications. Passwords are stored in the account authority.

Delivery Services & Self Service Plug-in Video Series [March 21, 2011]
– Part 1 – Merchandising Server component, concentrating on what’s new in Merchandising Server 2.1
– Part 2 – Receiver component, concentrating on what’s new in Receiver for Windows 2.1
– Part 3 – Delivery Services component, overview of what Delivery Services 1.0 is all about and how to configure it
– Part 4 – Self Service Plug-in component, covering an overview of Self Service Plugin 2.0, what’s new and how to configure it

Larry Page to boost Google even more as becoming CEO again

Choose any of the thousands (if not tens of thousands) mirrored reports by AP that Google founder hopes to prove he’s ready to be CEO [April 1, 2011] to learn the hopes and worries of the fans and anxious investors about the return of Larry Page [38] as CEO of Google after 10 years of Eric Schmidt’s [55] leadership.

Warning update: Google as an evil enterprise: the perception changes as vital APIs are shut down  [June 1, 2011]

An update from the Chairman [Eric Schmidt, Jan 20, 2011] (emphasis is mine)

Google -- Eric Schmidt with Sergey Brin and Larry Page in 2001

When I joined Google in 2001 I never imagined—even in my wildest dreams—that we would get as far, as fast as we have today. Search has quite literally changed people’s lives—increasing the collective sum of the world’s knowledge and revolutionizing advertising in the process. And our emerging businesses—display, Android, YouTube and Chrome—are on fire. Of course, like any successful organization we’ve had our fair share of good luck, but the entire team—now over 24,000 Googlers globally—deserves most of the credit.

And as our results today show, the outlook is bright. But as Google has grown, managing the business has become more complicated. So Larry, Sergey and I have been talking for a long time about how best to simplify our management structure and speed up decision making—and over the holidays we decided now was the right moment to make some changes to the way we are structured.

For the last 10 years, we have all been equally involved in making decisions. This triumvirate approach has real benefits in terms of shared wisdom, and we will continue to discuss the big decisions among the three of us. But we have also agreed to clarify our individual roles so there’s clear responsibility and accountability at the top of the company.

Google - Larry Page in the European Parliament -- 17-June-2009 Larry will now lead product development and technology strategy, his greatest strengths, and starting from April 4 he will take charge of our day-to-day operations as Google’s Chief Executive Officer. In this new role I know he will merge Google’s technology and business vision brilliantly. I am enormously proud of my last decade as CEO, and I am certain that the next 10 years under Larry will be even better! Larry, in my clear opinion, is ready to lead.

Sergey [Brin, 37] has decided to devote his time and energy to strategic projects, in particular working on new products. His title will be Co-Founder. He’s an innovator and entrepreneur to the core, and this role suits him perfectly.

As Executive Chairman, I will focus wherever I can add the greatest value: externally, on the deals, partnerships, customers and broader business relationships, government outreach and technology thought leadership that are increasingly important given Google’s global reach; and internally as an advisor to Larry and Sergey.

We are confident that this focus will serve Google and our users well in the future. Larry, Sergey and I have worked exceptionally closely together for over a decade—and we anticipate working together for a long time to come. As friends, co-workers and computer scientists we have a lot in common, most important of all a profound belief in the potential for technology to make the world a better place. We love Google—our people, our products and most of all the opportunity we have to improve the lives of millions of people around the world.

Then watch this Perspective from Google: Eric Schmidt & Larry Page – Zeitgeist Europe 2010 [May 19, 2010] to understand the quite subtle differences between the two leaders. Note that Larry Page is introverted vs. the typical extroverts as business leaders. Note as well (from reply to a question) that Google is not doing the typical business planning exercise but Larry and Brin ideas are simply financed because the operation is generating sufficient revenues for that. This is giving them a unique competitive advantage of moving along innovative things while all the rest of the industry is loosing time with planning.

From Zeitgeist 2010 Google Partner Forum Europe held 17-18 May 2010. Featuring Eric Schmidt (Chairman of the Board & CEO, Google) & Larry Page (Co-Founder & President, Products, Google).
[from 1:20 he is talking about how much he was struck by captioning and translation …]
Note: Switch on the caption and try also the translation on this video. Generally it is a great experience (although not always perfect, since it depends on the clarity of the speech). More information on the technology is available under the Captions tag on the YouTube blog. Best to start is probably here: The Future Will Be Captioned: Improving Accessibility on YouTube [March 4, 2010] and here: Happy Birthday Automatic Captions! Celebrate with more videos and higher quality [Nov 19, 2010]

For detailed analysis – however – of the possible effects of Larry Page becoming CEO again it is better to turn to Fast Company’s earlier 7 Ways Larry Page Is Defining Google’s Future [March 16, 2011] article (quite long). Here is the essence:

The company line on Page’s ascension is that it does not mark any effort to “fix something” at Google. After all, the company reported stellar earnings the day it announced that Page would replace Eric Schmidt. It generated more than $29 billion in revenue in 2010 and 24% annual growth. Page has been part of what has been an unusual but effective ruling troika with Schmidt and fellow cofounder, Sergey Brin.

And yet Page is becoming CEO at a crucial inflection point in Google’s history. The company is beset by rivals everywhere — Apple and Facebook, both of which are closing off chunks of Internet activity beyond Google’s reach; Amazon, Microsoft, Netflix, and others that compete fiercely against it in multiple markets; and even the U.S., the EU, and other governments that want to curtail Google’s ambition. Lately, Google has had more and more public whiffs (see Google Wave, Google Buzz, Google TV).

It’s true that Page is not stepping into a dire situation as Steve Jobs did at Apple in 1997. Page doesn’t need to be a turnaround artist. Yet he has to do something potentially harder: make changes to a winning formula in the face of intense scrutiny, when momentum appears to be against him. To borrow a sports aphorism, winning your first championship is easy compared with trying to repeat.

To outsiders, Page might seem an odd choice to be CEO. He’s personally reserved, unabashedly geeky, and said to be introverted. We won’t be seeing him keynoting A-list conferences with grand vision statements or sitting down for intimate conversations with the press (Google declined to make him available for this article). But after talking to high-level Google executives who work closely with Page, as well as ex-Googlers and other outside observers, a picture begins to emerge of how the search company will change under him. Here’s our seven-part guide to the Google of today — and tomorrow.

  1. A Little Top-Down Leadership Goes a Long Way
  2. Spur On Your Frenemies [encourage your “enemy friends” to do something]
  3. When in Doubt, Check the Data
  4. When in Creative Mode, Don’t Start With Data
  5. A Social Life Is Overrated
  6. Listen Up: Talk Is Cheap
  7. No Goal Is Too Big (And Some Are Too Small)

1. A Little Top-Down Leadership Goes a Long Way

Google - 20% delivering 50% which worked well till 10000 employees For much of its early life, Google reveled in its bottom-up culture. The governing philosophy was “Let’s hire lots of really smart people and let them do whatever they want,” says Brian Kennish, a Google engineer from 2003 to late 2010. Employees — especially engineers — were given unparalleled leeway in deciding what they wanted to work on and encouraged to use 20% of their time to come up with new ideas.

The archetypal product of this era was Gmail, which was born when engineer Paul Buchheit hacked it up in a single day in the summer of 2001. He showed the prototype to his colleagues, and when they expressed interest, Buchheit pulled other promising engineers onto his team. This kind of thing happened time and again at Google; among other products conceived deep within the company’s ranks were Google News, search suggestions, and AdSense, the contextual advertising system that accounted for nearly $9 billion in revenue in 2010.

Kennish, echoing several other former Googlers, adds, “This system worked really well until the company reached about 10,000 workers. After that, things started to break down.” (Google now has 24,000 employees and plans to hire another 6,000 in 2011.)

Android represents a new order, one that Page, who has long played a role in product strategy, will accelerate. … Page and Brin pushed Google into mobile, buying Android when the project was an eight-person startup in 2005. (Schmidt later joked that they didn’t tell him about it until after the deal.) At the time, Google’s mobile strategy was a hodgepodge effort to install its apps on lots of different mobile phones. Page realized that game would never scale. Eustace says it would have required “5,000 people, each one trying to port apps to all the different phones.” For Google to truly benefit from the transition to mobile phones, it would need to shoot for something bigger. Page gave Andy Rubin, Android’s indomitable chief, the resources to run the division as an autonomous unit. Their ambition helped Google settle on a course to release an entire operating system, rather than a single phone. What’s more, Google made Android free and allowed phone manufacturers and carriers to tinker with the software.

Google Andy Rubin (center) with major early partners HTC CEO Peter Chou and Christopher Schlaeffer T-Mobile -- 8-Oct-2008

Android, then, is as much a marvel of management as it is of engineering. “It wasn’t that Larry handed down his vision on stone tablets,” Eustace says. (In other words, he’s not Steve.) But Page had the founding idea that “what was necessary was an ecosystem,” and Android wouldn’t be where it is today if he hadn’t pushed for Google to do something more ambitious. Google - Android Patrners in Open Handset Alliance -- 6-Nov-2007

Page has done this elsewhere. Google’s recent success with YouTube in the face of an unrelenting stream of criticism can be chalked up to a similar management tactic: Page empowered YouTube CEO Salar Kamangar in much the same way he has Android’s Rubin. … As Page takes over, he’ll still find product seedlings everywhere. Google’s product lineup is replete with services that offer overlapping, needlessly duplicative functionality. Android’s triumph should serve as a sweet reminder of the value in imposing just enough discipline before letting the kids chase the ice-cream truck.

See also:
Google Buys Android for Its Mobile Arsenal [Aug 17, 2005]: “The 22-month-old startup, based in Palo Alto, Calif., brings to Google a wealth of talent, including co-founder Andy Rubin, who previously started mobile-device maker Danger Inc.
CrunchBase on Android

In July 2005, Google acquired Android, a small startup company based in Palo Alto, CA. Android’s co-founders who went to work at Google included Andy Rubin (co-founder of Danger), Rich Miner (co-founder of Wildfire), Nick Sears (once VP at T-Mobile), and Chris White (one of the first engineers at WebTV). At the time, little was known about the functions of Android other than they made software for mobile phones. This began rumors that Google was planning to enter the mobile phone market, although it was unclear at the time what function they might perform in that market.

Introducing Android [Nov 5, 2007]

[2:19] The creators of Android talk about their new open platform for mobile phones and the Open Handset Alliance. To learn more, visit: http://www.openhandsetalliance.com

Where’s my Gphone? [Andy Rubin, Nov 5, 2007]

Google Android chief Andy Rubin Android is the first truly open and comprehensive platform for mobile devices. It includes an operating system, user-interface and applications — all of the software to run a mobile phone, but without the proprietary obstacles that have hindered mobile innovation. We have developed Android in cooperation with the Open Handset Alliance, which consists of more than 30 technology and mobile leaders including Motorola, Qualcomm, HTC and T-Mobile. Through deep partnerships with carriers, device manufacturers, developers, and others, we hope to enable an open ecosystem for the mobile world by creating a standard, open mobile software platform. We think the result will ultimately be a better and faster pace for innovation that will give mobile customers unforeseen applications and capabilities.

Google, Bidding For Phone Ads, Lures Partners [The Wall Street Journal, Nov 6, 2007]

Among the handset makers that have signed on to the initiative are Taiwan’s HTC Corp., Samsung Electronics Co. and Motorola Inc. Operator partners include Deutsche Telekom AG’s T-Mobile, Sprint Nextel Corp. and Japan’s NTT DoCoMo Inc. (See the entire list of Google’s partners.) …

But until new handsets based on Android come to market, it won’t be clear how far operators have gone to satisfy Google’s desire for open mobile software. Some carriers have said they still want to make sure Android doesn’t allow sensitive user information to fall into the hands of rogue third-party developers, leading to invasions of privacy and security risks. Those issues partly explain why large U.S. operators such as AT&T Inc. and Verizon Wireless, a joint venture of Verizon Communications Inc. and Vodafone Group PLC, have yet to sign on to Google’s initiative.

Verizon Wireless is still weighing whether to join, a person familiar with the company’s thinking said. AT&T, in part because it exclusively carries Apple Inc.’s iPhone in the U.S., is restricted from partnering with Google, people familiar with the matter say. …

Sprint hasn’t agreed to carry a Google-powered phone yet, but signed on to the Android alliance while it continues talks. John Garcia, the carrier’s senior vice president of product development, said using Android in phones would make it easier to get a variety of mobile applications to consumers. Mr. Garcia said mobile-game makers routinely have to test their applications on an array of Sprint phones, writing specific programming code for each one. That could become a thing of the past if an open platform becomes widespread.

Android Open Source Project [Oct 20, 2008]

[4:26] An introduction to Android Open Source Project. Android is the first free, open source, and fully customizable mobile platform. Android offers a full stack: an operating system, middleware, and key mobile applications. It also contains a rich set of APIs that allows third-party developers to develop great applications. Learn more at source.android.com.

From this (my own) blog:
OPhone OS (OMS) 2.0 based on Android 2.1 [July 5, 2010]
Android 2.2 (Froyo) excitement is just the tip of the iceberg for the current Android momentum [July 9 – Sept 10, 2010]
Android 2.3 (Gingerbread) and 3.0 (Honeycomb) [Dec 30, 2010 – Feb 4, 2011]

What’s behind Android’s race to No. 1? [March 8, 2011]:

It’s no longer the era of the BlackBerry — or the iPhone. According to a market research report released this week, Google’s Android operating system now is the most popular smartphone platform in the United States.

The first phone running Android, the T-Mobile G1, wasn’t announced until September 2008. Only 2½ years later, the research firm comScore says Android is No. 1 in the U.S. with 31.2% of the market, compared with 30.4% for BlackBerry’s business-friendly operating system and 24.7% for the iOS from Apple, which powers the seemingly omnipresent iPhone.

What accounts for this meteoric rise? Here’s a summary of what makes Android popular, based on conversations with smartphone experts, buzz on the tech blogs and reader responses to our query posted on the @cnntech Twitter feed.

  • Consumers like choices
  • There’s basically one iPhone
  • There are dozens of Android options
  • Integration with the internet
  • Openness of the Android Market
  • Apps that do what you need, not what you don’t: In terms of app numbers, Android is losing big to Apple. Google’s Android Market has 150,000 apps. Apple has more than 350,000. But Gikas said the Android apps pretty  much cover everything an average consumer would want a phone to do, so having more apps isn’t necessarily the best selling point.
  • Stealing the best of everything and then giving it away

Platform Versions [Android Developers site, extracted on April 1, 2011]

Google Android Platform Versions - Historical Distribution -- 1-April-2011

Platform API Level Distribution
Android 1.5 3 2.7%
Android 1.6 4 3.5%
Android 2.1 7 27.2%
Android 2.2 8 63.9%
Android 2.3 9 0.8%
Android 2.3.3 10 1.7%
Android 3.0 11 0.2%

2. Spur On Your Frenemies [encourage your “enemy friends” to do something]

2009.04.30. [2:33] What is a browser? was the question we asked over 50 passersby of different ages and backgrounds in the Times Square in New York. Watch the many responses people came up with.

Less than 8% of people who were interviewwd on this day knew what a browser was.
[But most of them knew Google, and most of them considered Google a browser.]

Two years ago, Google sent a camera crew to Times Square, in New York, and asked passersby a simple question: What is a web browser? “A browser’s a search engine,” said one guy. Another respondent was pretty sure that “it’s what I search through — like, to find things.” When asked which browser they use, most people said Google, while a few renegades stuck to Yahoo and AOL. None of these, of course, are browsers.

So if you’ve ever wondered why Google needed its own web browser, called Chrome, here’s why: It needed Chrome to goad Microsoft, Apple, and other browser makers into reigniting innovation in what had become a moribund market. Everyone’s efforts collectively improve the web as a whole, which is good for Google and its ad business. Even if its rivals merely copied Chrome’s advancements — superfast, stable, and, thus far, impossible to hack — Google saw that it could achieve its larger goals.

Expect Page to launch even more initiatives that may seem futile when considered alone but that are, in fact, designed to wake up drowsy competitors. Think about such “puzzling” Google moves as releasing its own branded phones — the Nexus One and Nexus S — and competing against the handset makers and carriers that it’s supposed to be courting. Or about Google’s initiative to wire America with fiber-optic lines, as its plan to roll out superfast Internet to several cities suggests. Google really wants Verizon and others to pick up the pace. And when those rivals do, Google will benefit from the innovations that result.

See also: Sun Valley: Schmidt Didn’t Want to Build Chrome Initially, He Says [July 9, 2009]
Comment: Chrome came out in September 2008.

3. When in Doubt, Check the Data

Deciding questions by data is to Google what eye-catching design is to Apple, or what global supply-chain management is to Walmart. It forms the spine of every major decision, and nearly every minor one. Data’s preeminence in Google’s culture helps prevent anyone at the company from pulling rank. It also wards off resistance to change. This will only become more important as Page takes over as the top decision maker at a company whose core search algorithm, PageRank, is named for him.

… Even Page has proved willing to reverse himself if the numbers don’t bear him out. …

Google’s devotion to data isn’t always an asset (as we’ll explore momentarily), but there’s likely no other way for the company to conceive of itself because that’s how Page operates. “I was talking to Larry on Saturday,” says Nikesh Arora, Google’s chief business officer, when we sit down to talk the following Tuesday. “I told him that I’d gotten back from nine cities in 12 days — Munich, Copenhagen, Davos, Zurich, New Delhi, Bombay, London, San Francisco. There’s a silence for five seconds. And then he’s like, ‘That’s only eight.’ “

4. When in Creative Mode, Don’t Start With Data

… As Google grows into more arenas where engineering alone can’t carry the day, most notably in social and handheld interfaces, Page will have to tweak this data-driven mind-set to embrace more creative types if the company is to thrive. Google has never invested heavily in hiring classically trained designers, and insiders say that due to a constant shortage of creative staff, engineers sometimes decide the look of their own products. …

And yet, despite Page’s personal inclinations, there are signs that Google is pushing itself to transcend its design deficiencies. Matias Duarte joined the company’s Android team last year from Palm, where he was lauded for creating the well-regarded user interface for its mobile operating system called WebOS. Duarte admits that since signing on, he has come to rely on data as a tool in the design process — but not, he insists, as a crutch. Whereas the look and feel of Apple’s software and hardware are kept secret and revealed to just a few people, Duarte’s designs are shared widely inside Google and with other partners and testers. (Google routinely tests products this way before sharing them with the world, calling the process “dogfooding,” as in the company eats its own dog food. Or, in Duarte’s case, “Droid-fooding.”)

Duarte points out that this openness has led to novel insights into what users want. Honeycomb, Google’s new tablet-specific version of Android, includes an eye-catching interface to show people all the recent applications they’ve been using. It’s a feature that the iPad sorely misses — and it came about only because of extensive statistical analysis of usage patterns. The lesson: Google can succeed in more creative pursuits if it pushes the limits of its data-centric culture but still relies on that culture to enhance creative solutions. “We don’t design by committee; we don’t design by focus group,” Duarte says. “But we do verify everything we’re trying to do with our design with stringent, large-scale user testing.” …

5. A Social Life Is Overrated

Page’s apparent lack of personal interest on the web’s major social sites creates a convenient narrative for Google’s dreadful record in the space — a string of failures that include Dodgeball, Jaiku, Lively, Buzz, and Wave. Orkut, the social network that Google engineer Orkut Büyükkökten launched in 2004, is still alive (it’s big in Brazil), but few Googlers consider it a success. Meanwhile, Google has had several social-networking savants in the ‘plex and let them slip away to found other companies, among them Evan Williams (Twitter) and Dennis Crowley (Foursquare). …

… “There’s an EQ — an emotional intelligence — around social software, and it just might be out of Google’s reach,” says Jason Shellen, who spent four years as a business-development exec at Google after it acquired Blogger and who now works at AOL. …

… But that’s not to say Google is giving up on social. Far from it. Its success relies on understanding how the web works, and the web is getting more social all the time. Google has continued to acquire social startups — most recently Slide for $228 million (not to mention its rumored interest in buying Twitter for $10 billion). According to sources, Google isn’t planning a Facebook clone but rather it intends to roll out new social features across all its products. Its ultimate aim seems to be to collect and analyze the social activity that’s going on across the web, beyond Facebook’s walls. …

… If Google can’t compete with Facebook directly, perhaps it can render Facebook moot by making everything else on the web feel like Facebook. Still, building a fun web-based community turns out to be harder than building a great smartphone (witness the utter failure that is Apple’s Ping). Don’t be surprised if this is one arena where Page is happy merely to have a credible offering.

6. Listen Up: Talk Is Cheap

The company became the biggest search engine in the world because it built a better product, not because it created better TV ads than Yahoo.

Google’s build-it-and-they-will-come naïveté seems almost cute in the age of Apple. Many of Google’s advances go unnoticed by the public because nobody hears about them. Do iPhone owners know that Android lets you dictate email by voice? Imagine the marketing fun Apple would have there. Or that Google Voice rings all your phones when someone calls you, and transcribes your voice mail to boot?

With its new CEO an introvert, perhaps Google will never tap its inner Apple. But maybe, in the bigger picture, that’s a trade-off worth making. Page is not a CEO out of central casting, despite the fact that Wall Street and the media tend to prefer extroverts as leaders: the superhero who puffs out his chest and delivers bold, motivating pronouncements. According to some surprising forthcoming research from management professors at Harvard Business School, the University of North Carolina, and Wharton, though, introverts can be more successful leaders — particularly in dynamic, uncertain, and fast-changing environments like the tech industry. “They tend to be less threatened by others’ ideas,” says Adam Grant, a Wharton professor and coauthor of the study. “And they’ll collect a lot of them before determining a vision.” Because introverts spend more time listening than talking, they hear more ideas.

The hallmarks of Google culture, including the weekly TGIF [Thank God It’s Friday] sessions where Page and Brin take questions from employees, are precisely about creating dialogue. Even if the company relies less on 20% time for unfettered product development, Page’s personal style is likely to keep new ideas flowing. The key for Page is to “surround himself with some extroverts,” Grant says. “Extroversion and introversion are the only personality traits where you need a balance between the two to be an effective team.” As the success of the Bing sting indicates, Page seems to be listening to his extroverts in embracing a bolder public profile — not for himself, but for Google.

Google TGIF in 2006 with new Googlers wearing propeller heads

See also: What’s it like to work in Mountain View? [Google]

Transparency is a staple of Google’s working environment – all voices matter and Googlers enjoy a variety of opportunities to share information and voice questions and opinions. For example, every Friday we host a “TGIF” [Thank God It’s Friday] event in Charlie’s Cafe, where Googlers can learn about the company’s latest news and ask their tough questions in live Q&A sessions.

7. No Goal Is Too Big (And Some Are Too Small)

That audaciousness — the ambition to tackle a seemingly unsolvable problem with deep reservoirs of money and data — is the ultimate insight into what makes Google Googley. “When people come to Larry with ideas, he always wants it bigger,” says one ex-Googler. “His whole point is that only Google has the kind of resources to make big bets. The asset that Larry brings is to say, ‘Let’s go and make big things happen.’ ” (This may explain why Page isn’t interested in a Facebook killer: “With social, there isn’t a problem for Google to solve,” says the former Googler Shellen.)

That’s what’s thrilling about Page taking the helm at Google right now. You get the sense that under his leadership, Google could try its hand at anything. More than anything else during my interviews with people who know Page, one comment stands out: “I don’t care what you put in the article,” says David Lawee, Google’s head of acquisitions. “To me, this is the real story: Larry is a truly awesome inventor-entrepreneur. My aspiration for him is that he becomes one of the greatest inventors-entrepreneurs in history, in the realm of the Thomas Edisons of the world.”

The example used in the above article to prove the point is the Statistical Machine Translation research applied in Google’s machine-translation system:

[Franz] Och oversees Google’s machine-translation system, a spectacularly ambitious effort that analyzes text found on the web to create statistical models that can transform one language into another. Machine translation is far from perfect, but Google’s project, which began in 2004, has succeeded far beyond what most experts thought possible. Including Och. Google spent a year trying to recruit him; each time, he explained to Page and other execs that what they were asking for couldn’t be done. “They were very optimistic, and I tried to tell them to be cautious,” he says. “It’s really complicated, extremely expensive, and you need very large amounts of data.”

The company hired Och despite his skepticism, and today, machine translation (along with speech recognition) is one of Google’s best-known artificial-intelligence projects. It’s also a key competitive advantage. Even on the iPhone, you’ll use Google’s software to help you read that French road sign or to transform your voice commands into text searches. Och now seems bemused by this success. Google, he says, simply had far more resources — more data, more computing power, more money — than he ever thought possible. Google can now translate 58 different languages. “When I started at Google, if you told me that five years later we’d be able to translate Yiddish, Maltese, Icelandic, Azerbaijani, and Basque, I would have said, That’s just not going to happen,” he says. “But [Page and Brin] didn’t believe me. And I guess they were more right than I was.”

Inside Google Translate [July 9, 2010]

Let’s see for more details a presentation by Franz Och who oversees that work:
Google Faculty Summit 2009: Statistical Machine Translation [Oct 5, 2009]

Google Tech Talk, July 30, 2009 [49:50] Most state-of-the-art commercial machine translation systems in use today have been developed using a rules-based approach and require a lot of work by linguists to define vocabularies and grammars. Several research systems, including ours, take a different approach: we feed the computer with billions of words of text, both monolingual text in the target language, and aligned text consisting of examples of human translations between the languages.

Google - Static Machine Translation improvements for languages launched recently -- 30-July-2009[13:28 – 14:24] … some of the languages we’ve launched recently, Hindi, Thai and Hungarian … It is quite challenging for some of the languages to find data …

Doubling Up [Franz Josef Och, Sept 29, 2008]

Machine translation is hard. Natural languages are so complex and have so many ambiguities and exceptions that teaching a computer to translate between them turned out to be a much harder problem than people thought when the field of machine translation was born over 50 years ago. At Google Research, our approach is to have the machines learn to translate by using learning algorithms on gigantic amounts of monolingual and translated data. Another knowledge source is user suggestions. This approach allows us to constantly improve the quality of machine translations as we mine more data and get more and more feedback from users.

A nice property of the learning algorithms that we use is that they are largely language independent — we use the same set of core algorithms for all languages. So this means if we find a lot of translated data for a new language, we can just run our algorithms and build a new translation system for that language.

As a result, we were recently able to significantly increase the number of languages on translate.google.com. Last week, we launched eleven new languages: Catalan, Filipino, Hebrew, Indonesian, Latvian, Lithuanian, Serbian, Slovak, Slovenian, Ukrainian, Vietnamese. This increases the total number of languages from 23 to 34.  Since we offer translation between any of those languages this increases the number of language pairs from 506 to 1122 (well, depending on how you count simplified and traditional Chinese you might get even larger numbers). We’re very happy that we can now provide free online machine translation for many languages that didn’t have any available translation system before.

So how far can we go with adding new languages in the future? Can we go to 40, 50 or even more languages?  It is certainly getting harder, as less data is available for those languages and as a result it is harder to build systems that meet our quality bar.  But we’re working on better learning algorithms and new ways to mine data and so even if we haven’t covered your favorite language yet, we hope that we will have it soon.

See also:
Statistical machine translation live [April 28, 2006)]

Google Translate adds 10 new languages… [May 15, 2008]: “We’ve recently added translation capabilities for 10 new languages to Google Translate, bringing the total to 23 languages. The newly featured languages include Bulgarian, Croatian, Czech, Danish, Finnish, Hindi, Norwegian, Polish, Romanian and Swedish.

Translate between 41 languages with Google Translate [Feb 26, 2009]: “recently added Turkish, Thai, Hungarian, Estonian, Albanian, Maltese, and Galician to the mix. The rollout of these seven additional languages marks a new milestone: automatic translations between 41 languages (1,640 language pairs!). This means we can now translate between languages read by 98% of Internet users.

51 Languages in Google Translate [Aug 31, 2009]: “we’ve added 9 new languages to Google Translate: Afrikaans, Belarusian, Icelandic, Irish, Macedonian, Malay, Swahili, Welsh, and Yiddish, bringing the number of languages we support from 42 to 51.”

A new look for Google Translate [Nov 16, 2009]:

Translate instantly: Say goodbye to the old “Translate” button. Google Translate now translates your text right as you type.

Read and write any language: Want to say “Today is a good day” in Chinese, but can’t read Han characters? Click “Show romanization” to read the text written phonetically in English. Right now, this works for all non-Roman languages except for Hebrew, Arabic and Persian.

Text-to-speech: When translating into English, you can now also hear translations in spoken form by clicking the Speaker Icon.

Giving a voice to more languages on Google Translate [May 11, 2010]:

One of the popular features of Google Translate is the ability to hear translations spoken out loud (”text-to-speech”) by clicking the speaker icon beside some translations, like the one below.

We rolled this feature out for English and Haitian Creole translations a few months ago and added French, Italian, German, Hindi and Spanish a couple of weeks ago. Now we’re bringing text-to-speech to even more languages with the open source speech synthesizer, eSpeak.

By integrating eSpeak we’re adding text-to-speech functionality for Afrikaans, Albanian, Catalan, Chinese (Mandarin), Croatian, Czech, Danish, Dutch, Finnish, Greek, Hungarian, Icelandic, Indonesian, Latvian, Macedonian, Norwegian, Polish, Portuguese, Romanian, Russian, Serbian, Slovak, Swahili, Swedish, Turkish, Vietnamese and Welsh.

Five more languages on translate.google.com [May 13, 2010]: “In 2009, we announced the addition of our first “alpha” language, Persian, on Google Translate. Today, we are excited to add five more alpha languages: Azerbaijani, Armenian, Basque, Urdu and Georgian — bringing the total number of languages on Google Translate to 57.

Poetic Machine Translation [Oct 5, 2010]: “A Statistical Machine Translation system, like Google Translate, typically performs translations by searching through a multitude of possible translations, guided by a statistical model of accuracy. However, to translate poetry, we not only considered translation accuracy, but meter and rhyming schemes as well. In our paper we describe in more detail how we altered our translation model, but in general we chose to sacrifice a little of the translation’s accuracy to get the poetic form right.”

Franz Josef Och site
Google Translate blog

Google Technology RoundTable: Human Language Technology [Aug 21, 2008]

Human language technology experts at Google, Franz Josef Och and Mike Cohen discuss their exciting research in machine translation and speech technology with Alfred Spector, Google VP of Research and Special Initiatives.

Acer’s decision of restructuring: a clear sign of accepting the inevitable disintegration of the old PC (Wintel) ecosystem and the need for joining one of the new ecosystems under formation

Acer’s latest decision is also based on the so called Stan’s Smiling Curve — see much below — which was used already twice for understanding the restructuring needs in times of radical changes in the industry. This is the reason why product value, associated R&D and focusing on telecom channels (= more effective distribution, marketing and sales/aftersales) are emphasized along with consumer oriented products:

Follow-Up (Aug 2, 2011):
Acer & Asus: Compensating lower PC sales by tablet PC push [March 29, 2011 with comprehensive update on Aug 2, 2011] which is showing serious technical and market problems with the original version of Honeycomb

Update: Global PC Shipments Dip 3.2% in Q1: IDC [April 29]

Although the forecast for the quarter was already conservative–IDC expected a mere 1.5% growth in shipments–a steady but still cautious business mentality and waning consumer enthusiasm persisted. A spike in fuel and commodity prices and the disruptions in Japan added to the mix, further dampening a market struggling to maintain momentum, the major international market research firm said.

Despite promising economic sentiments, mature regions appear to be more focused on necessary replacements as a relative dearth of compelling reasons were present to buy secondary PCs. Emerging markets fared better due to lower saturation rates, but also slowed somewhat with Asia/Pacific (excluding Japan) region (APEJ) slowing to a 5.6% growth and China continuing to cool off after a momentous 2010.

Taiwan-based Acer was affected by continued turbulence in Europe, Middle East, and Africa (EMEA) region, its biggest market. Moreover, the vendor is stilling feeling the pullback in the Mini Notebook (netbook) and consumer space, while its upcoming tablet PCs have yet to fill in the void. In the U.S., Acer also ceded its place to a surging Apple in the major market.

Top 5 Vendors, Worldwide PC Shipments, Q1` 20111 (Preliminary)
(Units Shipments are in thousands)

Rank Vendor Q1`11 Shipments Market Share Q11`0 Shipments Market Share YoY
Growth
1 HP 15,191 18.9% 15,624 18.8% -2.8%
2 Dell 10,284 12.8% 10,469 12.6% -1.8%
3 Acer Group 9,039 11.2% 10,733 12.9% -15.8%
4 Lenovo 8,172 10.1% 7,028 8.4% 16.3%
5 Toshiba 4,809 6.0% 4,634 5.6% 3.8%
Others 33,062 41.0% 34,712 41.7% -4.8%
All Vendors 80,557 100.0% 83,200 100.0% -3.2%
Source: IDC Worldwide Quarterly PC Tracker, April 13, 2011

Worth to read along with this: Gartner: media tablets are the new segment next to mobile PCs and desktops, as well as web- and app-capable mobile phones [April 16, 2011]

Update: Acer appoints new president, adjusts corporate organization [April 20, 2011]

Acer on April 19 announced the appointment of Jim Wong, originally corporate senior vice president and IT Products Group president, as new corporate president effective immediately. The company has also separated its IT product global operations into two independent entities, Touch Business Group (Touch BG) and PC Global Operations (PCGO).

Touch BG consists of the original tablet PC and smartphone teams and is led by the new corporate president Jim Wong, while PCGO was originally the main PC product team and is led by president Campbell Kan, former vice president for smart hand-held business unit.

Acer has also set up three functional offices, Chief Marketing Office responsible for brand positioning and marketing strategies, Chief Technology Office for mid- to long-term business planning and integration of technologies, and Operation Analysis Office for studying and analyzing company business models and financial affairs.

In addition, Acer forecasts that its PC shipments in the second quarter of 2011 will decrease 10% on quarter mainly due to the impact of the corporate reorganization, inventory adjustments in main markets, and off-season effects.

Update: Acer changes business strategy from pushing volume to value, says chairman [April 8, 2011] (emphasis is mine)

Acer, in the future, will no longer push only shipment volumes, but will spend more time seeking product value and developing products that consumers need. To accomplish this, Acer will be seeking more R&D talent in the future, Wang noted.

Wang pointed out that a revolution is already in progress in the IT industry and Acer’s change in strategy is a must and the revolution will not only appear in the smartphone and the tablet PC industries. Wang used examples and noted that Microsoft’s Windows 8 operating system for 2012 will add support for ARM-based system-on-chip (SoC) platforms, and the software giant’s new move will completely change notebook and netbook’s designs in the future as future notebooks and netbooks will also feature instant boot capability, and Acer must catch up with all these opportunities.

In addition, Acer will also put more focus on developing technologies such as Clear Fi, touchscreen and software user interfaces, as well as working deeply into telecom channels.

Update: Acer increases Iconia tablet PC orders for April [April 12, 2011]

Taiwan-based PC brand vendor Acer has increased its April tablet PC orders to 500,000-800,000 units, aiming to compete against Motorola, RIM and Hewlett-Packard’s (HP’s) tablet PCs, according to sources from upstream component makers.

The sources pointed out that the 10-inch model is assembled by Compal Electronics with 7-inch model handled by Quanta Computer. Although Acer only placed a small amount of tablet PC orders in March, the company has significantly raised its orders in April with volume for 10-inch models reaching 400,000-600,000 units.

As US-based telecom carrier AT&T is already set to start selling Acer’s Iconia Tab A501, if Acer can also cut into Verizon’s channel, the company is expected to be able to challenge Motorola’s Xoom tablet PC. Acer internally forecasts to ship 5-7 million tablet PCs in 2011.

Acer has also recently started reducing its shipment proportion for netbooks and is aiming to have its tablet PC products cover the gap.

Acer also released a new company logo to show that the company is heading into a new direction and is aiming to create a new brand value.

Update: Acer changes its logo, hopes to start afresh [April 11, 2011]

Acer to initiate corporate restructuring, chairman says [April 1, 2011] (emphasis is mine)

The emergence of tablet PCs has made a strong impact on sales of consumer notebooks and netbooks, making Acer’s strategy ineffective, and therefore Acer has to initiate a corporate restructuring, Acer chairman JT Wang has said.

Wang, who has assumed the post of CEO at Acer after former CEO Gianfranco Lanci resigned on March 31, said Acer will appoint a global president at the end of April.

Wang said as CEO he will be responsible for finance, personnel and global marketing, while the president will supervise product design, product innovation, procurement and logistics services.

Acer’s president for Europe Walter Deppler, president for North America, Emmanuel Fromont, president for China, Oliver Ahrens and chief marketing officer Gianpiero Morbello are all expected to stay at their current posts, Wang said.

Wang also insisted that it is still not necessary for Acer to lower its shipment target for tablet PCs at the moment. Acer aims to ship 5-7 million tablet PCs in 2011.

See as well the following trend-tracking posts of mine. Without reading of them this trend-tracking post of “further information collection” could not be complete:
Acer & Asus: Compensating lower PC sales by tablet PC push [March 29, 2011]
Changing purchasing attitudes for consumer computing are leading to a new ICT paradigm [Jan 5, 2011]
ASUS, China Mobile and Marvell join hands in the OPhone ecosystem effort for “Blue Ocean” dominance [March 8, 2011]
Be aware of ZTE et al. and white-box (Shanzhai) vendors: Wake up call now for Nokia, soon for Microsoft, Intel, RIM and even Apple! [Feb 21, 2011]
Marvell to capitalize on BRIC market with the Moby tablet [Feb 3, 2011]

‘Mutant viruses’ sicken Acer, Asustek [March 29, 2011] (emphasis is mine)

Sales of their own-branded computers have taken a big hit and now the companies are scaling back unit volume projections for the first quarter. In fact, growth will be negative as these two netbook pioneers struggle to regain their footing in the face of the iPad onslaught.

Back in September, Stan Shih called Apple products “mutant viruses,” telling the Asian technorati gathered to hear his speech that his company, Acer, and other Asian PC boxen makers would eventually overcome the threat posed by the iPad, iPhone and insurgent Mac. However, that pronouncement was followed in October by the news that Apple Mac unit volume surpassed Acer in the US.

Acer founder Stan Shih -- 15-Oct-2009

Talk of the day — Acer needs reengineering: founder [March 30, 2011] (emphasis is mine)

Acer Inc., the world’s second-largest computer vendor, needs reengineering and repositioning because its previous winning formula is not effective any more, its founder Stan Shih said Tuesday.

Shih, who no longer manages the Taiwan-based multinational computer group but still controls a huge stake in the company, made the suggestion on the sidelines of a cultural seminar.

His advice came after Acer unexpectedly lowered its PC sales estimate for the first quarter of this year last Friday and gave a conservative forecast for its Q2 business prospects.

Acer revised its forecast on Q1 PC sales downward, from an annual increase of 3 percent to an annual decline of 10 percent, citing weaker demand in western Europe and the United States.

The following are excerpts from the local [Taiwanese] media coverage of Shih’s remarks:

Economic Daily News:

Shih acknowledged that smartphones and tablets have had a significant impact on the personal computer industry.

He expressed the view that Apple’s products, such as iPhone and iPad, have brought new visions and new concepts to the technology industry.

The prevalence of smartphones and tablets has made Acer’s original target of expanding its global PC market share obsolete, ” Shih said. “It’s no longer meaningful for Acer to pursue growth in sales volume. Acer should from now on focus upgrading its profit margins.”

Because of changing business environment, Acer underwent a major re-engineering almost once every 10 years.
In 1992, Acer reshaped its increasingly bloated organization under a lean and mean strategy. During the period, Shih came up with a “smiling curve theory” that stressed the importance of branding and research and development.

Its second reengineering effort came in 2000 when the company incurred huge losses because its contract production often hindered its branding efforts. Acer decided that year to spin off its contract manufacturing business while focusing on selling its brand-named PCs.

Over the past decade, Acer has emerged as the world’s second largest PC brand.

Now the company is at a crossroad again. Shih said Acer has only lowered its business forecast and has not incurred any losses.

“But its misforecast indicates that the PC market is undergoing substantial changes, ” Shih said. “The unexpected slow sales in Q1 should serve as a wake-up call. It’s time for Acer to undergo its third wave of re-engineering and re-positioning.”

Noting that Apple not only sells products but also sell services and that HP has announced its decision to install its Web OS system in its PCs, Shih said Acer should come up with new strategies to sustain its growth. (March 30, 2011).

Commercial Times:

Shih said it’s all too common for a business corporation to hit snags or face challenges.

“What counts most is change and re-engineer,” Shih said.

For Acer, he noted, the most urgent now is re-positioning and reshaping in order to achieve a breakthrough.

Shih suggested that Acer maintain transparency in its reengineering efforts and strengthen communications with the business community to bridge gaps in market expectations.

Thanks to Apple’s contributions, new business models have emerged, with close cooperation between smartphone and telecommunciation service operators, Shih said.

In the face of this new market trend, Acer should act quick and change fast, he stressed. (March 30, 2011).

===============================================================
*******************************************************************************
===============================================================

Stan’s Smiling Curve

Acer -- the Stan Shih Smile Curve

Smiling (Smile) Curve theory was invented by Stan Shih Ex CEO of Acer Computer in his 1992 book. The theory gained its popularity due to the fact it outlines the industrial structure of Taiwan, specifically the electronic industry at the time. The smile curve’s left hand side includes the technology, patent, research and development. The middle section includes assembly, manufacturing. On the right hand of the curve is marketing distribution and after service. The x-axis is showing the value chain (stage of production) from the concept to end user. The y-axis is for the value-added.

Based on this vision, Acer has adopted a business strategy to recreate itself from a manufacturer into a company that focuses on global marketing of brand-name PC-related products and services. Meanwhile, Acer also has invested aggressively in R&D to develop innovative technology. The concept later became widely cited to describe the distribution of value-adding potentials in various industries to justify business strategies aimed at higher value-adding activities.

More information on that in terms of recent (2007) circumstances see: The Knowledge Based Economy [April 25, 2007]:

Michael Nystrom: … manufacturing does indeed appear to be the lowest value input. This is why, the capitalists say, the world has evolved to the point that it has. “We think, they sweat,” they say. We of course, are the Americans and they are the sweating Asians.

Clever, isn’t it? But I have a nagging feeling there is something wrong with the theory, though I’m not exactly sure what. Perhaps I’m too rooted in the old economy, unable yet to adjust to the idea of the “knowledge economy.” But I have a feeling there is something more.

What is wrong, if anything, with the model? Or am I just a dinosaur?

Mike Shedlock / Mish: … there is nothing wrong with that chart. One can clearly look at China, India, and SE Asia in general and see without a doubt what is happening. And in spite of enormous increases in [the price of] raw materials, the prices of finished goods have barely risen.

Are cars, boats, pottery, computers, monitors, printers, light fixtures, etc keeping up with the prices of raw materials that make them? Clearly the answer is no. The curve reflects what is happening. In fact, the curve represents additional profit that can be had by shifting manufacturing to low cost providers. That is in essence the very foundation of global wage arbitrage. However, You are missing several key points.

Key Points

  1. Global wage arbitrage is not just about manufacturing
  2. The US has no intrinsic brainpower advantage
  3. The smile curve is flattening

… [worth to read in entirety]

Comments by Stan Shih at Year 2004 (from Me Too Is Not My Style, Update Edition* [August 8, 2010]):

[to the Chapter 3: A Lesson in Intellectual Property]

According to Stan’s Smiling Curve, the research/development innovation in the intellectual properties (IP) portion is the key of future industrial and corporate competitiveness, in the knowledge-based economics. The IP development should be based on the market need; otherwise it will be un-marketable technologies which are the mistakes many entrepreneurs and IP owners often make. In the new economy, creating a new business model is also a kind of an IP development. Again, it has to be profitable to be sustainable; if not, it will be just self-indulgence. Acer has set up Acer Value Lab to master the market need and develop the technologies and products, from the viewpoints of the users. (Please refer to Chapter 7 “The Smiling Curve for a New Century” in “Millennium Transformation—Change Management of New Acer”.)

[to the Chapter 9: Paradigm Shift in the Information Technology Industry]

I proposed the theory of “Stan’s Smiling Curve” to illustrate the new tendency in 1992, at which time the information technology industries had started to dis-integrate into up-, mid-, and down-streams. This was
different from the integrated PC business by those earlier computer companies. After the onset of dis-integration, PC industries have gone through many important changes, including a complete outsourcing model, the merger of Fujitsu and Siemens, and HP merged Compaq. Recently, some investors propose that do not invest the PC companies except Dell and Apple Computer, both whose positioning are exceeding a PC company. During the process of this industrial change, Acer has successfully repositioned. We gradually expand the product lines and
enhance the IT service businesses, and have become an exceeding PC company. We were lucky to catch the earlier opportunity and have transformed into a branding and marketing service company.

[to the Chapter 11: “Go Game Strategy” and “Stan Smiling Curve”]

“Stan’s Smiling Curve” theory has been well-recognized internationally in a variety of industries. In addition to the IT industries, consumer-electronics, and software industry, the similar development has been seen in semiconductor, digital learning, and agricultural industries. All the industries and companies should go toward the both ends on “Stan’s Smiling Curve”. That is, to enhance the research and development, and marketing, so that the corporate value can be generated. I had also designed two value formulas: corporate value formula and brand value formula. (Please refer to Chapter 8 “Creating Brand Value” in “Millennium Transformation – Change Management of New Acer”.)

* original publication:  Stan Shih, Me-Too Is Not My Style: Corporate visions, Strategies and Business Philosophies of the Acer Group, 1996; The Acer Foundation

Millennium Transformation – Change Management for New Acer [August 8, 2010]):

[from the Preface for the New Edition [Me Too Is Not My Style, Update Edition] Learn the Future from the Past:]
Then, I wrote the book “Millennium Transformation”, in which Acer’s highlights from 1996 to 2004 was recorded, following the first two decades of Acer described in this book. During the eight years illustrated in “Millennium Transformation”, Acer had gone through several significant transitions, especially the second re-engineering at the year end of 2000. The changes of background and decision processes of these transitions were more dramatic than that in the first re-engineering in 1992. After the 2nd re-engineering, Acer has successfully broke the growth limit and created another peak of business.

From: http://www.stanshares.com.tw/StanShares/portal/ebook/index.aspx

This is a Chinese based website [www.stanshares.com.tw ]. It is mainly about Mr. Stan Shih, the founder of Acer Group/ Chairman of iD SoftCapital Group, sharing his concept of management and philosophy of life.

It also includes 2 English books by Mr. Stan Shih – “Me Too Is Not My Style” and “Millennium Transformation – Change Management for New Acer“. If you are interested, you are welcomed to read it on-line or download the books for free.

[all his books: http://www.stanshares.com.tw/stanshares/portal/book/index.aspx]

===============================================================
*******************************************************************************
===============================================================

CEO and President Gianfranco Lanci’s resignation:

Acer trade volume erupts after pep talk by founder [March 31, 2011] (emphasis is mine)

Trade volume for shares of Acer Inc. erupted yesterday after its founder gave a pep talk, urging that the company should not focus on being No. 1 so much as it should on increasing profitability, in the midst of fierce competition from smart phone and tablet PC makers.

Acer last Friday shocked the PC industry by slashing its sales forecast for Q1 from an increase of 3 percent year-on-year to a decline of 10 percent. The company’s stock fell to its daily limit both on Monday and Tuesday, with foreign institutional investors selling a total of 6,273 units on Tuesday alone. Each stock unit is 1,000 shares of that stock.

Investment trust firms pretty much followed in foreign investors’ footsteps, while securities firms were on the buy side both on Monday and Tuesday.

What was seen as motivational talk by ever so iconic Acer founder Stan Shih Tuesday put an end to the selling spree yesterday, as the shares closed with total trade volume of 148,000 units. The stock however closed down again, albeit by a much smaller margin of 3.8 percent, to NT$60.7, still above the critical NT$60 level. The TAIEX dropped nearly 50 to 8,646.31.

Tuesday, Shih, who still serves as a director on Acer’s board, urged the PC giant to undergo another restructuring effort to ward off competition from smart phone and tablet PC makers.

We’re only slashing our sales forecast, not reporting a loss,” he said. “Yet the mere fact that we had to downgrade a number that we had had wholehearted confidence in suggests the kind of challenge we’re faced with.”

He pointed out that Acer undergoes a major restructure effort about every ten years. “Now is about the time,” Shih said.

He said Acer first has to abandon its “No. 1 in the market” mentality. Given diminishing profit margins that PC manufacturers are faced with, the correlation between No. 1 and profitability is no longer absolute, he said.

Being No. 1 in the market is only a superficial victory, something that makes our faces look good,” he said. “Yet realistically, we could have lost more through an erosion of earnings and profitability.”

He said what Acer needs to do, as Apple has proved time and again, is to “sell products” as well as “sell service.” The business model in which a manufacturer purely makes hardware will no longer work, he said.

Acer must seek to change: founder [March 31, 2011] (emphasis is mine)

Acer Inc founder Stan Shih on Tuesday (March 29) said that the the world’s second largest PC maker must “seek to change.” The company has repeatedly made inaccurately forecasts for its performance outlook, seriously disappointing shareholders and damaging the company’s image.

Shih told Taiwan PC maker’s management team that it was common for enterprises to encounter operating difficulties, though he was quick to add that Acer’s current problems may suggest its past formula for success has now become outdated.

Shih’s remarks are viewed by many in the industry as a sign that Acer will launch a third round of restructuring in the near future following similar moves in 1992 and 2000.

Acer’s latest inaccurate forecast was admitted on Friday (Mar. 25) when the company unexpectedly revised downward its revenue forecast for the first quarter. However, just a week earlier, senior Acer officials had assured foreign investors at a forum that their previous export growth prediction for the company for January to March remained unchanged.

The subsequent revision seemed to indicate Acer had failed to grasp the trend in a fast-changing world market.

Last year, the Acer founder also raised the idea of restructuring. However, his remarks this week were more direct and strident. “When a company is faced with problems and difficulties, it must make internal adjustments, change the old mode of thinking, establish new core competencies and look forward,” he said.

Shih said that when the broad circumstances are changing, companies must face up to the challenges and devise countermeasures. “This industry very obviously has entered into the era of mobile phones and telecommunications. Tablet computers and handsets have become the mainstream. I must say we should thank Apple for opening a way for everyone to follow.”

Looking back to the company’s 2000 reforms, a change which Shih said he had originally expected to take two to three years to push through. In fact, he said, it took only one year for the company to achieve its goals.

Shih attributed the latest gap between forecast and performance to a lack of good communication with the outside world. As for whether Acer will continue to pursue the target of becoming the world’s top 1 own brand PC maker, he said, “No. 1 is no longer that important, because even if you occupy the largest market share, it still would not guarantee high profits. So what is important is to look for change.”

Acer’s 1992 corporate reforms proved successful in part because the company acquired the laptop computer division of Texas Instruments and also partly because it recruited an outsider, Gianfranco Lanchi, as its general manager.

However, in the last two to three years many of Acer’s senior executives have retired, with the company bringing in larger numbers of foreign nationals to join its management team. This development has raised worries among employees that Acer has been following a policy of “de-Taiwanizing.”

In the last two trading days, Acer’s shares have dropped by the daily limit, causing the company’s market valuation to shrink by NT$26 billion (US$882 million).

Acer CEO Gianfranco Lanci with Dadi Perlmutter head of Intel Architecture Group at Computex 2010

Acer CEO and President Gianfranco Lanci resigns – With immediate effect [Acer press release, March 31, 2011] (emphasis is mine)

Acer CEO and President Gianfranco Lanci has resigned from the company, with immediate effect. Acer Chairman J.T. Wang takes acting role in the interim. The company has commenced with the planning of organizational and operational adjustments for the sustainable future of Acer.

The resignation was approved at a meeting of Acer’s Board of Directors today, and the company has communicated internally with its worldwide employees.

On the company’s future development, Lanci held different views from a majority of the board members, and could not reach a consensus following several months’ of dialog. They placed different levels of importance on scale, growth, customer value creation, brand position enhancement, and on resource allocation and methods of implementation.

The change does not affect current operations which are functioning as normal. Acer’s strong management team of multi-nationals has been well-informed and is committed to overseeing and implementing the company strategies, as does the amicable company relations with industry partners persist. Acer will continue to push for globalization, follow its multi-brand and channel business model, develop competitive products and services, and foster closer relations with key vendors and channel partners.

Acer Chairman, J.T. Wang expresses, “The personal computer remains the core of our business. We have built up a strong foundation and will continue to expand within, especially in the commercial PC segment. In addition, we are stepping into the new mobile device market, where we will invest cautiously and aim to become one of the leading players.”

“In this new ICT industry,” continued Wang, “Acer needs a period of time for adjustment. With the spirit of entrepreneurship, we will face new challenges and look to the future with confidence.”

In his role as President and CEO, Lanci has contributed significantly toward Acer’s growth. The company expresses its true appreciation for Lanci’s efforts and wishes him all the best in his future endeavors.

Some reports on that resignation:
Acer CEO Lanci Quits After Clashing With Board; Wang Takes Over [Bloomberg BusinesWeek, March 31, 2011]:

The 56-year-old executive earned a civil engineering degree from the Politecnico of Turin, where he was born. He joined Texas Instruments Inc.’s Italian unit in 1981 and became country manager for the Portable Computers and Printers Division in Italy, the Middle East and Africa by age 37, according to Acer’s website. In 1997, he was named managing director of Acer Italy after Texas Instruments’ portable PC business merged with Acer.

Lanci, who enjoys reading and playing tennis, was promoted to president of the International Operations Business Group in 2003 after heading Acer’s operations in Europe, the Middle East and Africa, according to Acer.

Wang, born two months before Lanci, became chairman in 2008 after Lanci succeeded him as CEO. Wang has a bachelor’s degree in electrical engineering from National Taiwan University and an Executive Master of Business Administration degree from Taiwan’s National Cheng-Chi University.

Acer CEO Lanci quits after boardroom bust up [MicroScope.co.uk, March 31, 2011] (emphasis is mine):

Acer has the lowest operating expense in the PC industry base and used strong relationships with the Original Design Manufacturers (ODMs) to offer price points that lured consumers in and underpinned its rise to the top.

However, consumer confidence and growing interest in tablet PCs resulted in an abrupt end to booming mainstream notebook sales, and highlighted Acer’s reliance on the segment, despite its efforts to diversify through acquisition.

Ranjit Atwal, principal analyst at Gartner, told MicroScope that Acer had made a good fist of becoming a major player in the PC space but the consumer boom was over and its efforts to build in the professional market were more muted.

Fundamentally, Acer’s business model is predicated on maintaining volumes in consumer mobile PCs which allows them to maintain and increase margins. But consumers are now generally backing off buying traditional PCs,” he said.

Atwal said that Acer’s efforts in the professional mid-market, led by the Gateway brand in Europe, had not compensated for the drop in consumer demand.

“Given that the professional market is moving away from a box mentality – most vendors are trying to provide solutions the whole sale is becoming more complicated in terms of how you get to the business customer,” he said.

Acer Joins AMD In Not Having a CEO [Softpedia, March 31, 2011]:

Hearing that AMD, even after so much time, still doesn’t have a permanent head figure probably has consumers wondering, but it looks like Acer might just go through a similarly tumultuous period now that its own CEO resigned.

Consumers keeping track of happenings on the IT industry will most likely have learned of how Advanced Micro Devices has been bereft of a Chief Executive Officer for months now.

The previous one, Dirk Meyer, left the company about two months ago and actually came as a surprise.
Now, Acer has provided onlookers with a similar surprise, as CEO and President Gianfranco Lanci has submitted his resignation.

Gianfranco Lanci Calls It Quits As Acer CEO [mocoNews.net, March 31, 2011] (emphasis is mine):

Has the impact of the iPad 2 claimed its first executive victim?

In November the company made a big splash showing off its newest mobile computing devices.

This was a departure from its traditional main line of business of making PCs, and the hybrid culture resulted in at least one curious product that, depending on who you asked, was either innovative or just plain odd: the Iconia (pictured), in which what appears to be a laptop on the outside unfolds to reveal a two-screened tablet on the inside.

But since November, things, as they say, have moved on, and new product launches from other Android players as well as Apple (NSDQ: AAPL) with its iPad 2 have clearly shaken up Acer.

J.T. Wang remaining at the helm:

Acer chairman JT Wang -- 31-May-2010 2010 Time 100 selects Acer’s J.T. Wang as one of world’s most influential people [April 30, 2010]

CEO of Acer Group and also the chairman of Taipei Computer Association (TCA) was listed in number two spot under the Leaders category of the recently Time Magazine’s annual top 100 world’s most influential people. Top world’s leader and individuals including Brazilian President Luis Inacio Lula da Silva, US Pres. Barack Obama, former US Pres. Bill Clinton, Sarah Palin, Apple’s Steve Jobs, Oprah Winfrey, Lady Gaga and etc were listed.

J.T. Wang By Michael Schuman [Time Magazine Apr. 29, 2010] (emphasis is mine)

One of the great trends of the next decade will be the rise of Asian companies. Long known for efficiency and manufacturing prowess, they’re now becoming more adept at the “soft” elements of business — marketing, design, branding and strategy — and that’s making them fiercer competitors.

J.T. Wang, 55, CEO of the Taiwanese PC maker Acer Group, is a harbinger of the future. When Wang became top executive in 2005, it ranked fifth in the global PC market. Acer has since stormed up the charts to No. 2, with more than 14% of the market, ahead of Dell and behind only HP.

Wang, who has worked at Acer for 29 years, is winning out with his knack for tapping into consumer trends — jumping headfirst, for example, into the craze for netbooks. “We don’t judge,” Wang once said. “We do what the customer really wants.”

Acer’s old directional statements back in November, 2010:

Acer Aims for 15% Revenue Growth in 2011 [Nov 2, 2010] (emphasis is mine)

Optimistic about PC market prospects, the Taiwan-based Acer Inc., now the world`s second largest PC vendor now, aims to achieve a 15% sales revenue growth in 2011, with notebook PC shipment to exceed 50 million units, according to the firm`s chairman J.T. Wang. This has showed Wang`s ambition to unseat HP in the market.

Wang also shows his optimism about PC market outlooks in 2011, indicating that prices of notebook PCs in the global market will remain steady throughout the year. The market situation will also help to stabilize the ASP (average selling price) of its products in the year.

Not worried about Apple`s iPad tablets gradually replacing netbook PCs in sales, Wang also commented on the rise of Apple`s iPad tablets, saying that the phenomenon has brought about positive momentum in the global PC market, and that scale of the segment will continue growing in 2011. Worth mentioning is that Acer will accelerate its foray into the segment, planning to release its newest tablet PC running Microsoft`s operating system this month. The firm`s Android-based tablet is slated for debut next year.

To adapt his firm to an ever-changing market, Wang stated that each of Acer`s devices will be installed with the software “Acer Clear.fi” starting in the first quarter of next year, which will satisfy its customers with better hardware integration so as to help enhance value of its products.

Acer`s CEO Gianfranco Lanci added that the firm will step up exploring emerging markets as Brazil, Russia, India, Indonesia, etc. [i.e. BRIC] Hopefully, the firm will take over HP`s leading position in the global market for notebook PCs next year.

Acer to Set Up 2nd Chinese Headquarters in Chongqing [Nov 4, 2010] (emphasis is mine)

Acer will also rally its contract manufacturers, including Compal and Wistron, and supply-chain member firms to establish factories in the city, thereby forming a complete manufacturing clustering. The company is scheduled to sign a contract with Chongqing City government for the project in December.

The Chongqing headquarters will be essential for Acer to expand its presence in the Chinese market, in order to become the world`s leading PC brand. Gianfranco Lanci, chief executive officer of Acer, reported that the company has targeted raising the share of the Chinese market in its total revenue to 20% by 2013, up from 7% now.

Acer Steps Up Market Push in Mainland China [March 23, 2011] (emphasis is mine)

Acer Inc. is stepping up market push in mainland China by building partnership with the mainland`s retailers.

Almost one month after signing a pact to provide electronics retail chain Suning Corp. with US$500 million worth of computers in two years, Acer recently licensed online electronics retail chain 360buy.com to offer after-sales service in the mainland for it.

It`s the first ever after-sales service licensing that Acer has signed with a mainland Chinese retailer, showing the company`s determination to boost sales in the mainland. 360buy.com raked in revenue of RMB10 billion (US$1.5 billion at US$1:RMB6.5) in 2010, up 100% from 2009.

Last year, Acer signed a contract to provide the online retailer with RMB100 million (US$15 million) worth of notebook computers.

When a trade mission composed of representatives from heavyweight enterprises in Nanjing visited Taiwan in February, Acer signed an agreement to supply US$500 million worth of computing products to the Nanjing-based Suning.

Acer Chairman J.T. Wang pointed out that his company`s sales through Suning spiked seven folds in the second half last year from the same period of a year earlier. The retailer is operating 1,400 shops in the mainland. Wang estimated Acer`s sales through the chain to further rise three folds this year.

Acer has projected its sales in the mainland at US$2.5 billion for the year, surging 70% from last year. In the meantime, the company`s market share in the mainland is estimated to rise to 13-15%, up from current 10%.

Acer`s sales in the West have slumped because of maturity of the markets there, prompting the company to depend on mainland China for huge growth in the years to come.

Thus the originally planned BRIC focus, especially the mainland China part has been unable to sustain Acer’s old strategy of growth!

Regarding what one of the options for restructuring could be:

Should Acer consider a Nokia type deal with Microsoft – but for laptops? [March 30, 2011] (emphasis is mine)

If the agreement between Nokia and Microsoft works out in the end it is a big win for both companies, and the consumer. Microsoft gets a dedicated partner willing to do whatever it can to promote Windows Phone 7 and Nokia gets the inside track to the Windows Phone 7 OS.

Now, I have said here before that I believe that Microsoft should be taking a strong role in the hardware end of the business that its Windows platform runs on. We have that in a limited scope with the Microsoft Signature brand laptops and desktops available in the Microsoft Stores.

In this aspect the consumer is a big winner because they know that they are getting a computer that has been optimized to run the Windows operating system at its best. No more of the crap ladened computer with sub-optimal components in pretty boring shells.

Today Stan Shih, Founder of Acer, said at an event in Taipei that the company needed to rethink its philosophy when it comes to being the world’s biggest PC vendor and focus on better and more distinguishable products.

If this indeed the case maybe Stan and Steve should sit down together and see if they can help each other out in the same fashion that Nokia is working with Microsoft.

There is no doubt that Acer build some really good hardware but by forging an alliance with Microsoft they could possibly gain some freedom to come up with some innovative and cool shells for their good hardware.

From Microsoft’s side I am sure that a special deal could be offered up in regards to its software whether it be consumer or enterprise.

This doesn’t even bring up the fact that Acer is getting into the mobile market as a handset maker, although this might be off the table given the Nokia deal.

This is pure speculation and will likely never happen but an interesting idea all the same.

Deeper background:

This is what happens when the essential creator of the PC (Wintel) ecosystem, Microsoft Corporation is repeatedly failing to deliver the next great client offering despite its numerous claims in the row from as far back as January 2010.

See what happened in that regard:
HP’s Windows 7 Slate Device Revealed by Steve Ballmer [Techmeme, Jan 6 – Jan 10, 2010]
Windows slates in the coming months? Not much seen yet [this trend-tracking blog, July 13 – Oct 9, 2010]

This is what happens when:
– things are continuing with Microsoft stance of just talking about Windows slates but no products on the horizon plus Windows Phone 7 will come out only in November
– while at the same time Apple and Google/Android are creating a very fast growing, new consumer market for computer powered client devices, and as a consequence:

1. Goldman downgrades Microsoft, makes case for major overhaul [Oct 3, 2010] along with which a radical proposal was put forward:

A break-up of the consumer businesses could potentially unlock hidden value, or more discipline on cost could turn the businesses into contributors to profitability and shareholder value. For example, the Xbox products could be an appealing stand-alone entity, given the historical success of the Xbox and the products’ brand strength, and the business could show unlocked value with forced cost discipline compared to as a piece of Microsoft. To date the company’s comments suggest that management still sees significant value in combining the consumer and enterprise efforts, but we view a foot in both camps as preventing a successful focus on one strategy, a la Oracle in the enterprise or Apple for consumers.

Gartner 630 with Ballmer at Gartner Symposium ITxpo Orlando 2010

2. And still in A Mastermind Interview With Steve Ballmer, CEO, Microsoft [Oct 21, 2010, see the video record which is clickable from there] on the Gartner Symposium/ITxpo Orlando 2010 Ballmer said (when confronted by that opinion) that Windows is Microsoft’s biggest consumer product and continued:

When people say nutty things like Goldman you ask what part of Windows would you like to spin out? There is no rationale. The reuse of technology across the consumer and enterprise is the way forward.

3. Moreover he argued for his position that Linux and Android is reused for both markets with the same code base—just like Windows.  Then he put forward his best argument against the idea that Microsoft should spin out a consumer business:

… is next to crazy. It’s next to the craziest discussion I’ve ever had. Nobody wants a different UI per device. … People want the same thing at work they wanted at their home. …

… [the fact that there were] 200 million plus Windows consumer PCs in the last year alone says there is a lot of people are thinking in that direction, across the world. … I know we have competitive challenge, but part of the challenge is people walk in [to their IT department] with their iPad saying I want it at work. They do want the same things at work that they have at home, whether that comes from us or from our competition. … People will ask for things at work that they love, that they buy with their own money .

4. While answering the 4th part of Gartner 630 (6 short anwers to simple questions in 30 seconds max) about the coolest product introduced or to be introduced in 2010 and indicating the Xbox Kinect coming in November he is getting teased by a quick question whether that will be the consumer version or the enterprise version to which he responds with (turning like an artist away from the interviewers and towards the audience):

Let me help these guys! What they don’t understand: cool starts at home.

Gartner 630 #2 with Ballmer at Gartner Symposium ITxpo Orlando 2010

This is what happens when despite of this clear understanding by Microsoft and its CEO that recognition was starting to be delevired ways too late as reported in detail by my other trend tracking posts:

ASUS Eee Slate based Windows marketing from Microsoft [March 21, 2011]

CES 2011 presence with Microsoft moving to SoC & screen level slot management that is not understood by analysts/observers at all [Jan 7, 2011]

while still unanswered questions remain:

How Microsoft is going to solve the problem of assuring HTML5 et al platform stability for web developers? See more information.

Microsoft’s upcoming CES 2011 announcement of a Windows slate overlay software for touch-first HTML5 applications could have true competitive impact on the overall tablet (iPad etc.) market, see more information. <<< this had not been delivered there (see CES 2011 presence with Microsoft … )

Microsoft has a new overall platform strategy based on evolving HTML 5, and an enhanced one for its own Windows client devices, see more information.<<< this had not been delivered yet (see CES 2011 presence with Microsoft … )

and generally it is still true that:

Microsoft and HTML 5: new platform?leading compliance?

although the new platform? question goes back to Microsoft going multiplatform? [Sept 17, 2010].