Friday, August 31, 2012

Google Fiber could actually widen digital divide in Kansas City Read more: Google Fiber could actually widen digital divide in Kansas City

August 31, 2012 | By Jim Barthold


Some of the more broadband-disadvantaged neighborhoods in Kansas City have a very real chance of never becoming Google (Nasdaq: GOOG) "fiberhoods" for the same economic reasons that they're now on the wrong side of the digital divide.
With two weeks remaining for neighborhoods to sign up potential customers for the service, many neighborhoods—"chiefly the least prosperous pockets of the metro area," according to the Columbia Missourian—are behind the pace needed to hit the threshold of anticipated customer penetration to qualify for Google Fiber service, the newspaper reported Friday, noting, "that means many of the free connections Google agreed to make to public buildings, library branches and community centers won't happen."
Google told the newspaper it's not writing off any fiberhoods and is working to fix problems for apartment dwellers who might sign up for the service. Still, the very nature of the sign-up process—driven by logical and reasonable economic factors—could make it tough for Google to build into the areas and expect a fair rate of return on the investment.
Matters are further complicated for Google by local organizations which are helping consumers with the $10 pre-qualification fee. While helping boost pre-reg numbers, this effort also leaves Google wondering whether these customers will in the end pay $120 a month for Internet and TV service or $70 a month Internet or even $25 a month for 5 Mbps connections.
"We're thrilled that some local organizations want to encourage widespread Internet access by helping with the Google Fiber pre-registration process. That being said, people should only pre-register if they intend to get Google Fiber," company spokeswoman Jenna Wandres told the newspaper.
Google's dilemma—and the plight of the citizens trapped in neighborhoods without broadband service—is part and parcel with the entire "digital divide" argument. Incumbent providers like Time Warner Cable (NYSE: TWC) and AT&T (NYSE: T) were franchised into their businesses with different service requirements. TWC still gives free Internet and TV service to more than 350 libraries, schools and other buildings in Kansas City in Missouri and Kansas, the newspaper said. AT&T U-verse, to a lesser extent, still reaches 400,000 homes in the market.
The problem for Google Fiber comes down to perception and the way the service was introduced. Google positioned itself as a new way for the masses to get ultra-broadband, but even a company with pockets that drag on the ground must financially justify the investment, so Google set a pre-registration requirement as a condition for fibering a neighborhood.
Nevertheless, some residents assumed that Google would offer its service free to schools and libraries throughout the two cities. The company's agreement with the governing bodies of both Kansas Cities required only 430 locations and the cities picked those spots, leaving other neighborhoods trying to win a pre-registration lottery that realistically favors the more affluent.
"I'm concerned that the digital divide will be exacerbated by the fact that you'll have extremely faster Internet in some neighborhoods while people in neighborhoods with fewer resources will be left even further behind," Christopher Barnickle, an assistant director at the Kansas City, Kan. Public Library told the newspaper.
His thoughts were echoed by school district spokesman David Smith who opined, "It is unimaginable to us to have that divide reopen."


Thursday, August 30, 2012

Optical transport equipment market declines 5%

August 30, 2012 | By Sean Buckley

Carriers in North America, EMEA spent less money on gear

 "The optical market contracted in the first half of 2012 due to lower spending in the mature markets of North America and EMEA,' he said. "The emerging regions of Asia Pacific and Latin America, however, did grow as service providers in the regions continued to expand network capacity."

While the North America and EMEA optical markets declined 12 and 16 percent, respectively, Asia Pacific and Latin America grew 7 and 11 percent.
Two of the growth drivers in the optical technology revenue mix were WDM and Packet Optical Transport Systems (P-OTS).

Driven by the service provider demand for 40G and 100G wavelengths, WDM equipment revenue rose 5 percent in the first half of 2012. Likewise, the adoption of POTS by carriers like Verizon and XO continued to rise and contributed to almost one-third of the optical market revenues during this period.
From a vendor perspective, Huawei has become the dominant optical player, capturing about 20 percent of the market in this period. Dell'Oro's ranking is in line with other analyst firms such as Infonetics, which said in its Optical Network Hardware vendor market share report that it saw similar seasonal gains by the Chinese vendor.


Tuesday, August 28, 2012

Windstream, LifeSize partner to boost video conferencing for enterprises Read more: Windstream, LifeSize partner to boost video conferencing for enterprises

August 28, 2012 | By Sean Buckley

Will bundle video with its data and IP-based voice services

Windstream (Nasdaq: WIN) on Monday added video conferencing to its enterprise services portfolio by establishing an agreement to offer LifeSize Communications' services to its business customer base.
The service provider will bundle LifeSize's HD video products with its IP network solutions, including Ethernet data, in addition to its suite of VoIP, SIP trunking and MPLS services.
While videoconferencing is still a nascent yet growing market segment, partnering with LifeSize enables Windstream to offer the service on a broader scale than it would have on its own.
Instead, Windstream can immediately offer HD video services immediately to both its lower-end T1 data and higher-end Ethernet customers throughout its fiber network footprint.
Another option for Windstream is that could also offer video service on a cloud basis from one of its data centers, a market it has been expanding into via strategic acquisitions including its purchase of Hosted Solutions.  
Offering videoconferencing via a partner that has that expertise is a positive move for Windstream. But it still faces the challenge of educating more of its business customers on the value of such a product. It also comes at a time when the worldwide enterprise videoconferencing and telepresence market declined 6.9 percent in Q2 2012 to $564 million from the same period a year ago, according to a new IDC report.
Petr Jirovsky, Worldwide Networking Trackers senior research analyst for IDC, acknowledges that while the Q2 slowdown is a concern, adoption continues to grow.
"Despite the overall weak 2Q12 performance in the worldwide enterprise videoconferencing market, we still see adoption being driven by video integrations with vendors' UC and collaboration portfolios, and with the increasing use of video among small workgroup, desktop, and mobile users," he said.
Regardless of the near-term market challenges, it's obvious that Windstream has added videoconferencing through the partnership with LifeSize as a way to diversify its business services portfolio to more effectively compete with a host of smaller CLEC competitors as well as the big three ILECs AT&T (NYSE: T), CenturyLink (NYSE: CTL) and Verizon (NYSE: VZ).


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Verizon works to restore fire-damaged network in Lawrence, Mass. Read more: Verizon works to restore fire-damaged network in Lawrence, Mass.

August 27, 2012 | By Sean Buckley


Verizon (NYSE: VZ) on Monday began work on restoring services in the Lawrence, Mass. area following a fire under the Central Bridge on North Canal Street that caused damage to a number of the telco's area cables.
Many of the telco's customers in surrounding towns and cities located northwest of Boston, including Andover, Lawrence, Littleton, Methuen, North Andover, North Reading and Tewksbury, have also lost some services due to the fire. In addition, some business and government customers' voice and data services may be affected.
Since the fire took place early Monday morning, the service provider's crews have been splicing new cables, informing state and local officials, and have rerouted emergency lines for the local fire and police stations.

The service provider said it has set up trailers at the location of the fire with crews working "in round-the-clock shifts until all services are restored."

Verizon said it will provide another update on the restoration effort in Lawrence on Tuesday, Aug. 28.
In an update given to the media this morning (Aug. 28), Verizon said that while the work to restore service is complex because technicians are splicing thousands of individual copper and fiber optic connections, the restoration effort is on track.  
"Verizon crews worked through the night and made very good progress on restoring service for our customers," said Allison Cole, Verizon president of operations in New England. "We have already restored critical network operational and surveillance circuits, high-capacity fiber backbone circuits, and worked with state and local officials to ensure that all 911 services are fully operational in the area."
Last week, the service provider's network suffered an outage outside Baltimore when a derailed train damaged the telco's facilities at the accident site, interrupting some customers' voice and data services.


The 8 Most Important Skills Needed for Cloud Computing Today


Joe McKendrick, Contributor
I track how technology innovations move markets and careers

The constant promise we hear about cloud computing is that is supposed to lift many of the burdens of information technology management away from companies, and out to some service provider. However, the promise is always a lot sweeter than the reality. And that reality is that new types of skills are required to successfully manage today’s cloud environments.

For one, many clouds are internal to organizations, developed, hosted and managed by IT or another part of the enterprise – thus requiring many of the same skills that an Amazon Web Services or IBM need to keep their offerings going.

Second, for those organizations adopting much of their IT power from third-party providers, there is still a need — or even greater need — for people who know what services to pick, can negotiate service level agreements, and can integrate those off-site offerings with on-site data and operations.

So, either way, cloud computing calls for a range of new skills. Here are the eight essential skills needed:

1) Business and financial skills: Cloud computing proponents need to be able to make the business case for a cloud deployment, or to nix a cloud project that doesn’t meet these needs. They also need to be able to build a return on investment (ROI) case, and monitor and make judgment calls on metrics based on business performance versus the costs of supporting or subscribing to the cloud.  Cloud computing is very much a powerful business tool, and business-savvy evangelists are needed to make it work for enterprises.

2) Technical skills:  While the types and extent of skills required on staff will depend on how much of the cloud will be built and managed in-house, there’s no question that the ability to build applications that can run quickly on the Internet prevail. The knowledge base would need to be heavily focused on Internet capabilities. Java and. NET framework skills may come to the forefront, as well as knowledge of virtualization. Knowledge of open-source tools and languages may also come into play as well.

3) Enterprise architecture and business needs analysis:  Essential for laying out a roadmap of what services – whether they are coming from IT or an outside provider – will be needed. Able to work with the business, speak the language of business, as well as work with IT professionals.  An understanding of the principles of service-oriented architecture would go a long way.

4) Project management skills:  Project management skills have been a necessity for some time with IT projects, which require marshaling people and a variety of resources from across the enterprise to agree on goals, establish timelines, and meet benchmarks in a timely manner. Unfortunately, as any IT veteran knows all too well, user preferences change, more deliverables are added and padded into the project (“scope creep”), and projects end up being delivered behind deadline and over budget.  Since cloud computing offers end-users the potential to run wild with new requests for services, effective project management skills are needed to keep cloud projects from eventually costing far more than the on-premises systems they were designed to replace.

5) Contract and vendor negotiation: Working with cloud providers, able to negotiate service-level agreements, availability. Able to read the fine print in vendors’ contracts and call them on the carpet when things aren’t performing as planned.  Who will step up to the plate and make the right noise when a cloud service goes down or is habitually underperforming? Cloud makes vendors omnipresent in day-to-day operations, so individuals with training or savvy with vendor negotiating skills will be a must.

6) Security and compliance:  An understanding of security protocols is essential, no matter what type of cloud is being deployed. Related to this is an understanding of mandates and regulations – such as Sarbanes-Oxley, HIPAA, and the myriad of data-handling laws from the European Union to states within the United States.

7) Data integration and analysis skills: Data is more valuable than oil in today’s economy. But having actionable information on which to base business decision requires consistency and timeliness. Will data generated through cloud-based systems mesh seamlessly with on-premises ERP, data warehouse or other systems? Data professionals are in strong demand, and those who can design systems that can ingest Big Data from the cloud, or use the cloud to provide analytical environments.

8) Mobile app development and management: The rise of mobile devices in the workplace is part and parcel of the cloud phenomenon.  In many cases, the move to cloud computing is being driven by the need to provide services that can be accessed by any and all devices, be they laptops or smartphones. There is strong demand for professionals who can build and deliver apps that can reside in the cloud and reach employees, partners and customers anywhere and anytime.

Monday, August 27, 2012

Apple's $1B patent victory over Samsung has long-term implications for smartphone industry Verdict could herald a change in how smartphones are designed Read more: Apple's $1B patent victory over Samsung has long-term implications for smartphone industry

August 27, 2012 | By Phil Goldstein


The jury verdict that awarded Apple (NASDAQ:AAPL) $1.05 billion in damages against Samsung Electronics for patent infringement is still reverberating across the wireless industry, with analysts and legal experts sorting through the ramifications for smartphone makers and beyond.
The verdict, delivered late Friday night, represented a near total victory for Apple, even though the $1.05 billion awarded in damages was less than the $2.5 billion Apple wanted. Samsung was found to have infringed upon Apple's design and utility patents with its smartphones but was not found to have infringed on those patents with its Galaxy Tab 10.1 tablet. Samsung had countered with claims that Apple had infringed upon its patents. However, the jury did not find that to be the case.
Because of the decision, Apple is likely to seek a ban on the infringing Samsung products in the U.S. Additionally, experts say the decision could impact the design and function of other smartphones as other device makers work to avoid the same mistakes Samsung made.
Apple and Samsung, as expected, produced sharply contrasting responses to the verdict, with Apple saying that the "mountain of evidence" presented during the trial showed that Samsung's copying was deeper than expected. "The lawsuits between Apple and Samsung were about much more than patents or money. They were about values," Apple said. "At Apple, we value originality and innovation and pour our lives into making the best products on Earth. We make these products to delight our customers, not for our competitors to flagrantly copy. We applaud the court for finding Samsung's behavior willful and for sending a loud and clear message that stealing isn't right."
By contrast, Samsung said that the decision was not a victory for consumers, and that it will lead to fewer choices, less innovation and potentially higher prices. "It is unfortunate that patent law can be manipulated to give one company a monopoly over rectangles with rounded corners, or technology that is being improved every day by Samsung and other companies," Samsung said. "Consumers have the right to choices, and they know what they are buying when they purchase Samsung products. This is not the final word in this case or in battles being waged in courts and tribunals around the world, some of which have already rejected many of Apple's claims. Samsung will continue to innovate and offer choices for the consumer."
For many the case was widely seen as a proxy fight between Apple and Google's (NASDAQ:GOOG) Android platform, since Samsung is the largest Android handset maker. Apple's executives, led by the late CEO Steve Jobs, have long argued that Google's Android platform too closely copies the company's iPhone and iOS software.
In its own statement, Google chose to keep the matter at a distance. "The court of appeals will review both infringement and the validity of the patent claims. Most of these don't relate to the core Android operating system, and several are being re-examined by the U.S. Patent Office," Google said. "The mobile industry is moving fast and all players--including newcomers--are building upon ideas that have been around for decades. We work with our partners to give consumers innovative and affordable products, and we don't want anything to limit that."
If the fate of Google's Android ecosystem is less clear, the next legal steps are apparent. Apple is expected to file within days for permanent injunctions against sales of the infringing Samsung products. U.S. District Judge Lucy Koh has set a formal hearing on the matter for Sept. 20. Samsung is expected to appeal the jury's verdict, but it's not clear how strong a case Samsung will be able to mount, given the overwhelming legal victory for Apple.
"There is a strong presumption that the jury was correct and will be reversed only in cases in which the verdict was, essentially, a travesty of justice," Peter Toren, a patent litigation expert and partner at Weisbrod, Mattheis & Copley in Washington, told the Washington Post. "There does not appear to be any serious question that the jury's verdict was wrong in this case. Further, I can't imagine that Judge Koh would take it upon herself to reverse the verdict in such a high-profile case."
And what will the case mean for handset innovation? The verdict could be a boon to Microsoft's (NASDAQ:MSFT) Windows Phone, which has licensed Apple's design patents for the platform, and has noted that Windows Phone is very distinct from both Apple's iOS and Android. It could also force handset makers to design phones that are more unique and distinct in both industrial design and functionality than the iPhone. "It's good for intellectual property, and good for firms that invest in design," Chip Lutton Jr., vice president and general counsel of Nest, maker of a smart thermostat, told the New York Times.
Some say the verdict will give Apple sweeping control over an industry it already controls a large share of. Others, however, think it will force OEMs to become more innovative. "Within a product cycle or two, consumers will begin to see exciting, new and different-looking designs," Christopher Carani, a partner at the Chicago-based intellectual property law firm McAndrews, Held & Malloy, told the Post.


Friday, August 24, 2012

FCC temporarily suspends effort to deregulate special access


Industry remains divided on the results of the agency's decision

The FCC voted 3-2 to temporarily suspend rules that automatically granted requests to change prices on special access services that incumbent telcos sell to competitive service providers and wireless operators.
While the vote went through on Aug. 15, the results and order were not made public until late Wednesday.
In its decision, the FCC said that there is "significant evidence that these rules, adopted in 1999, are not working as predicted, and widespread agreement across industry sectors that these rules fail to accurately reflect competition in today's special access markets."
Before it makes a decision on what to do next with special access, the FCC said that it would "initiate a mandatory data request within 60 days to help it better understand the competitive landscape of the special access market."
Not everyone at the FCC is happy about this ruling. Republican commissioners Robert McDowell and Ajit Pai argued in their dissent that the agency's decision was made in haste.
"The majority chose to lay its procedural path backwards. Due to such glaring deficiencies, I have no choice but to respectfully cast a dissenting vote," Republican Commissioner Robert McDowell said in a statement.
"In short, the commission has reversed the steps that a data-driven agency should take," fellow Republican Commissioner Ajit Pai said.
Not surprisingly, competitive service providers and traditional telcos remain divided on this decision.
AT&T (NYSE: T) and Verizon (NYSE: VZ), two of the biggest suppliers of special access services, collectively said that while they support the FCC's call to review more data, they think the FCC should have done its homework more carefully before reaching a decision on this issue.
"While today's order acknowledges that the current rules fail to capture the full extent of existing competition, the FCC, before taking any action, should have collected the data it repeatedly has said it needs to evaluate the marketplace," said Donna Epps, Verizon's vice president for federal regulatory affairs.
Bob Quinn, AT&T's senior vice president for federal regulation, argued against what he saw as a move "to further regulate yesterday's technology" as the telecom industry moves from traditional TDM-based special access to fiber and IP-based network technologies.
tw telecom (Nasdaq: TWTC), a Colorado-based CLEC, believes this measure is a step in the right direction. Although tw telecom has aggressively built out its own fiber-based Ethernet network targeting businesses, it still has to rent last mile network facilities from the large incumbent players like AT&T and Verizon.
"It has been clear for years that the FCC's pricing flexibility rules did not accurately measure the extent to which incumbent local exchange companies control the critical last mile facilities that connect communication carriers to business locations across the nation," said Larissa Herda, chairman, CEO and president of tw telecom, in a statement. "By suspending the flawed triggers that were based on incorrect predictive judgment, prematurely allowing the incumbent local exchange companies to obtain pricing flexibility, the FCC has prevented future rate increases in markets where the incumbents have market power."


Friday, August 17, 2012

Verizon's Shammo wants more enterprise customers to migrate to IP services


August 17, 2012 | By Sean Buckley

Fran Shammo of Verizon (NYSE: VZ) said on Wednesday that the telco plans to drive more of its business customers off of the legacy frame relay and ATM-based networks to its all-IP network.

Like other major telcos—particularly its large ILEC counterparts AT&T (NYSE: T) and CenturyLink (NYSE: CTL)--Verizon continues to struggle with migrating its legacy revenues to IP revenues.

Speaking at the at the 15th Annual Oppenheimer Technology, Internet and Communications Conference in Boston on Wednesday, the obvious challenge, Shammo says, is that it still has a lot of customers on its legacy frame relay and ATM networks.

The telco has given those customers an end date where they either have to convert to an IP platform or work with another service provider to get their service.

"If you look at technology change, we have been in the IP world for a number of years, but we still have customers that are on IP/VPN, frame and ATM, but they have to go away," said Shammo. "We can't continue to invest in those networks and we can't continue to dedicate resources to that platform."

Shammo added that these while there's a lot of benefits for customers to move to IP, he realizes there's a lot of cost involved with making that switch. 

"From a moving forward down the road perspective, these customers have to move to IP—there's too much benefit for them not to move—but there's some capital intensity for these customers to move," he said. "The question is do I take the capital I invest to keep that platform alive or take that capital and help the customer move their network to IP and realize the benefits."

While these moves create pressure on their top line, the end result is these measures will improve their margins of the overall enterprise space.

Complementing its IP migration drive is the move into new spaces like data centers and machine to machine (M2M) via its acquisitions of Terremark and Hughes Telematics. These platforms provide greater value beyond traditional voice and data services that have become commoditized.

Since it's continually investing in the network every year, being able to reach its customers via its fiber network is not a problem to serve its enterprise customers.

"Our issue is not coverage," Shammo said. "Our issue is voice and data has been commoditized so the issue is how do we add the value on top of that core voice and data and build on top of things like Terremark and the cloud perspective and bring in the Hughes platform that can sit in the Terremark cloud and drive those types of solutions into the enterprises."

Of course, in the near-term the reality is that its migration to IP drains overall enterprise revenues.

During the second quarter, Verizon reported that enterprise revenues were $3.8 billion, down 3.4 percent compared with second-quarter 2011. However, strategic service sales, including Terremark and Ethernet, were up 4.4 percent during the quarter.

"Our IP revenue stream is in fact growing, but the issue is you don't see it because we have all this legacy voice and data that is just declining, and you see that in our wholesale business as well," Shammo said. "The key for us is to transition everybody over to this IP platform and be able to build a value proposition above this IP platform."

Cloud, via Terremark, has become a key point of the new direction for the telco.

A year ago customers had little, if any interest in putting their applications into their cloud, but Verizon is seeing that mentality begin to change as more businesses look to reduce their IT cost structure.

"You're not going to move everything to a cloud because there are certain things you want to hold to the vest, but there are other things that are not strategic to your business that you can get a 10-30 percent reduction in cost," he said. "That's the easy piece."

To help assist customers in moving their apps from their facilities and into the Verizon cloud, it will employ the help of CloudSwitch, a cloud software company it purchased earlier this year.

"We invested in CloudSwitch to have that software to move that application over to the cloud without any disruption and move it back," Shammo said.  

Besides the legacy-to-IP migration and cloud services, the service provider would like to get out of the standalone CPE supplier business, one that's not exactly profitable.

"If we sell CPE in a bundle with managed services it makes all the sense in the world to that, but if people are going to come to me for a server that I drop ship to them that's not the business I need to be in," he said. "It's an extremely low margin business and it's not good for me to be in that business."

Shammo added that it is moving away from the CPE business, which is putting pressure on the company's top line.

"Coming out of the out of the second quarter [CPE] was $84 million of my increase on a year-over-year basis, but that business is business that others can do better."

Sprint's stock surge sparks M&A speculation


August 17, 2012 | By Phil Goldstein

The recent rise in Sprint Nextel's (NYSE:S) share price has stoked market speculation that the company could become a takeover target, or perhaps make an acquisition of its own.

The past few weeks--since the carrier reported second-quarter earnings--have seen Sprint's share soar upward. On July 31 the stock closed at $4.51 and then on Aug. 13, shares closed at $5.05, the first time Sprint's stock topped $5 in more than a year. The stock is now trading at $5.16 per share.

Some of the speculation seems somewhat outlandish, with Apple (NASDAQ:AAPL) and Samsung Electronics rumored as potential suitors for the carrier. Both companies have large cash hoards but neither has given any kind of indication of interest in acquiring a wireless carrier or becoming more directly involved in wireless networks.

More likely though is that Sprint would make a play for a smaller carrier.

"Sprint has been boosted by several things," Kevin Smithen, an analyst at Macquarie Capital, told Bloomberg. "There's also a sense that they will lead the eventual consolidation of the smaller players like MetroPCS (NYSE:PCS) and Leap [Wireless] (NASDAQ:LEAP), which will help them with deleveraging and also eliminate some of the competition."

Indeed, Sprint has left the door open for consolidation, as long as Verizon Wireless (NYSE:VZ) and AT&T Mobility (NYSE:T) are not doing the acquiring. "We're certainly working very hard to compete with AT&T and Verizon," Sprint CEO Dan Hesse said earlier this month. "The industry has to deal with the issue of the duopoly. The gap between the No. 2 and No. 3 players is enormous. We always have been and always will be open to further consolidation, as long as it isn't AT&T or Verizon Wireless."

Sprint recently disclosed that Keith Cowan, the carrier's president of strategic planning and initiatives and its lead mergers and acquisitions executive, will leave the company at the end of September. A deal for MetroPCS was reportedly close to being finalized earlier this year but was killed by Sprint's board; Sprint has never confirmed or discussed any of the reports about the MetroPCS deal.

Earlier this week Sprint announced it closed an offering for $1.5 billion in fresh debt. Sprint said it intends to use the net proceeds from the offering for general corporate purposes, which may include redemptions or service requirements of outstanding debt, network expansion and modernization and potential funding of Clear wire (NASDAQ:CLWR). The same day it announced the close of the debt offering the company said it would redeem $1.5 billion in 2013 and 2015 debt maturities.

Thursday, August 16, 2012

AT&T reports DDoS attack on its DNS servers


Enterprise customers report service disruptions
August 16, 2012 | By Sean Buckley

AT&T (NYSE: T) on Wednesday said it suffered a distributed denial-of-service (DDoS) attack on its DNS (Domain Name System) servers resulting in service disruptions for a number of its enterprise customers.

The attack on its DNS servers, according to a PC Advisor report, began Wednesday morning, West Coast time, and has disrupted services for a number of AT&T's enterprise customers that use its managed services DNS product.

Worldwide Environmental Products, an enterprise customer that uses the managed services DNS product, said they got its "first report of problems at 6:31 a.m. Pacific time."

AT&T acknowledged the DNS server issue and said it has been working to fix it to ensure there would not be major disruptions to its customers.

"Due to a distributed denial of service attack attempting to flood our Domain Name System servers in two locations, some AT&T business customers experienced intermittent disruptions in service on Wednesday," AT&T said in a prepared statement. "Our network and security teams quickly worked to mitigate the impact and service is currently running normally."

Wednesday, August 15, 2012

Wireless backhaul to be a $9B market by 2016, says Dell'Oro


August 15, 2012 | By Sean Buckley

The wireless operator community's move to deploy more cell sites to support upcoming deployments of LTE and their overall migration to IP is creating a healthy market opportunity for transport and router vendors, says Dell'Oro Group.

In its recently released market report, the mobile backhaul market, including transport and routers & switches, is forecast to reach $9 billion by 2016.
The traditional wireline transport segment of wireless backhaul will grow at a 2 percent compounded annual growth rate to $6 billion by 2016. Likewise, routers and switches, which is expected to represent 30 percent of the mobile backhaul market by 2016, should grow at a 9 percent compounded annual growth rate to nearly $3 billion.

"Since mobile radios are carrying more packet data than voice circuits and an even greater amount in the future, we anticipate operators will continue to evolve their backhaul networks to increase throughput and efficiency with routers & switches at cell sites and network edge," said Jimmy Yu, vice president of Mobile Backhaul Market Research at Dell'Oro.

Microwave will also play a role in the equation, providing service to "over half of the sites" in areas where it's cost prohibitive to deploy fiber, or as a complement to another wireline solution.

After wireless operators complete their roll out of macro cell sites, they will begin deploying both micro and pico small cells. Small cell deployments will use a mix of both fiber solutions supplied by wholesale providers like Zayo, which recently created a team dedicated to small cell deployment sales and emerging non-line-of-sight wireless-based solutions offered by vendors like Bridgewave.

This forecast bodes well for both vendors and the incumbent and competitive wholesale providers that supply wireless backhaul services.

Besides Zayo, a number of incumbent telcos and competitive players, including CenturyLink (NYSE: CTL) and XO Communications, are ramping up their respective networks to deal with the impending demand for wireless backhaul.

CenturyLink reported in its Q2 2012 earnings report that it completed almost 1,350 fiber builds to cell towers and over 2,000 year-to-date, ending the quarter with about 12,150 fiber-connected towers. Meanwhile, XO completed the upgrade of its nationwide backbone network to 100G in response what the CLEC's CTO Randy Nicklas says are "other carriers including mobile operators and others [asking] us about 100G transit service."

While the wireless backhaul market will continue to see growth over the next four years, a separate report by Insight Research projects a "compounded annual revenue growth rate of 17 percent, with growth slowing by 2016 to be more in the range of 12 to 15 percent."

Tuesday, August 14, 2012

Why the Cloud is So Attractive to Retail Marketers


August 14, 2012 By Mat Atkinson

In a recent study of retail technology trends by Retail Information Systems, 28 percent of respondents cited cloud computing as their "No. 1 architecture approach to software," almost double the figure in 2011. For some perspective, cloud computing wasn't even on the list in 2009. So, what's pulling retailers toward the cloud?

Cloud adoption is driven by the need of businesses to get the greatest value from technology budgets through better adoption of business applications, improved collaboration and increased agility. This is particularly relevant in retail, where marketing teams have to manage an increasing number of customer touchpoints — e.g., e-commerce sites, web-enabled smartphones, social networks, etc. As a result, marketing teams are struggling to deliver the high volumes of content needed by all of these channels. They're finding that on-premise, legacy systems simply don't deliver the ease of use, collaboration and agility required.
With cloud applications, retailers have access to powerful business tools that are easy to use, improve collaboration and enable more agile processes at a fraction of the cost of on-premise technology. There are cloud-based tools that can manage very specific marketing functions, making it possible to run an entire marketing operation with virtually no new hardware to install.

For example, email marketing campaigns can be personalized and streamlined with solutions like SailThru, BlueHornet and GetResponse. Location-based mobile marketing providers like Placecast, xAd, and xtify offer their cost-effective solutions in the cloud. Need help creating customer surveys? SurveyMonkey, QuestionPro and KeySurvey free retailers from managing the technical fuss of building surveys and gathering data.

There are also great tools for project management, help desk software and, in my company's case, online proofing for marketing content. We work with many retailers who previously relied on PC-stored files and email to collaborate on high-volumes of content — e.g., catalogs, print ads, web pages. This resulted in a deluge of email, multiple copies of the same document residing on multiple machines and a huge amount of management time being consumed tracking who made which changes to which document.
By moving review and approval processes to the cloud, retailers can have each user easily share the same document and managers can see who is working on it in real time. Such cloud-based collaboration means retail marketing teams can deliver high-volume marketing projects faster and with less management time. Retailers have told us, "We needed to get out of the Stone Age" and "We were spending too much time and money on project management."

The results achieved from transitioning these activities to the cloud have been very impressive. SailThru reports a 99 percent reduction in campaign setup time. Working with a large mobile operator, Placecast helped Starbucks' mobile ads reach a 93 percent brand recall rate; and KeySurvey helped National Dodge Volkswagen save a "ton of money in advertising ... just by Chrysler alone." A recent study by Intellilink revealed that online proofing helps retailers deliver marketing campaigns 56 percent and reduces their management effort by an average of 59 percent.

Since switching to cloud-based proofing, Guitar Center's marketing projects operate much more smoothly. "We're now much faster and efficient getting projects out the door," said James Smith, director of merchandise operations at Guitar Center. "Since there's no printing involved, the time we spend managing proofs — distributing and collecting them; figuring out who wrote what; and what comments to enact — has been reduced by over 90 percent. What once took four hours now takes less than 15 minutes."
Mat Atkinson is the founder and CEO of ProofHQ, an online proofing solution for marketing teams of any size in any industry who need to deliver marketing projects faster and more efficiently.

Monday, August 13, 2012

AT&T leads U.S. Ethernet sales, Vertical Systems Group says


More service providers see Ethernet growth to provide connectivity to the cloud

AT&T (NYSE: T) continues to dominate the U.S. Ethernet services market in terms of port shares sold, according to Vertical Systems Group's mid-year Business Ethernet Leaderboard.
Ethernet was a major factor in the telco's wireline and business services Q2 2012 results.
During the quarter ended June 30, AT&T reported its overall business revenues declined 1.5 percent, to $9.1 billion, a factor it attributed to a drop in legacy ATM and Frame Relay sales as more customers migrated to next-gen IP/MPLS VPNs and Ethernet. Meanwhile, the telco's strategic Q2 business service revenues rose 13.5 percent over the same period a year ago, while total business data revenues grew 2 percent year over year.

Not far behind AT&T on the Leaderboard were, once again, Verizon (NYSE: VZ) and tw telecom (Nasdaq: TWTC), which continue to hold on to second and third place. Verizon reported sales of strategic services like Ethernet rose 4.4 percent compared with second-quarter 2011, while tw telecom's Q2 revenues rose 7.7 percent on strong Ethernet and IP VPN sales.
CenturyLink (NYSE: CTL), which held the sixth spot in the previous Leaderboard issued in February, took the fourth spot in the newest rankings, surpassing both XO Communications and Cox. The telco immediately became a major player in the domestic U.S. Ethernet market when it purchased Qwest in 2011.
Besides the top telcos and CLECs, cable operators--particularly Cox and Time Warner Cable (NYSE: TWC), which took the fifth and seventh spot on the Leaderboard respectively--continue to be a factor in the Ethernet race.

Rick Malone, principal at Vertical Systems Group, said that overall Ethernet market is being fueled by the "rising demand for Ethernet access focused on connectivity to private Clouds for data center hosting."
Malone added that VSG expects "to see increased deployments of these configurations, which could have an impact on Ethernet share results as early as year-end 2012."
Read more: AT&T leads U.S. Ethernet sales, Vertical Systems Group says - FierceTelecom http://www.fiercetelecom.com/story/att-leads-us-ethernet-sales-vertical-systems-group-says/2012-08-13?utm_medium=nl&utm_source=internal#ixzz23Rv26fBD
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Friday, August 10, 2012

United States Postal Service Selects TMone for Inside Sales Services


IOWA CITY, Iowa, Aug. 9, 2012 /PRNewswire-iReach/ -- TMone announced today it has been awarded a contract with renewal options through 2023 by the United States Postal Service (USPS) to provide Inside Sales Services and Small to Medium Business Customer Acquisition strategies.
TMone is tasked at targeting new customers for the Postal Service and bringing them through the Every Door Direct Mail process.
- Accelerate speed to new sales, revenue growth, and Return on Investment (ROI) with regards to the Every Door Direct Mail service;
- Develop methods for lead generation with regard to the Every Door Direct Mail service;
- Improve Customer Experience Measurement (CEM) scores with regards to new small and medium sized businesses;
- Validate and/or support the Postal Service's concept of an Inside Sales program;
- Adjust and refine the strategy and design of the Every Door Direct Mail (EDDM) Inside Sales program to enhance and improve overall program performance and augment the optional full Inside Sales program deployment phase for expanding product coverage and capacity.
TMone is a provider of domestic business services and customer relationship management (CRM) outsourcing. With locations in the Midwest and Northern Great Plains, delivers new jobs to America's hometowns. Call Center Outsourcing is a people business, and TMone is in the business of augmenting and supplementing other companies human capital needs. TMone has grown every year since inception and start-up in 2003 and is on Inc. Magazine's Honor Roll List of Fastest Growing Privately Held Companies for the last five years. TMone also provides cutting-edge Software as a Service (SaaS) Enterprise integrations. This enables TMone to drive efficiency, automation and effectiveness with technology solutions that are on par with its largest global competitors, at a lower cost and executed far more nimbly.
"TMone recognizes the importance of speed to new sales for the United States Postal Service and the Every Door Direct Mail program. TMone's substantial experience in small business customer acquisition, sales pipeline development, account management and technology customization are essential for the Postal Service Program," said Anthony Marlowe, President of TMone. "The Postal Service's Every Door Direct Mail product is a tremendous tool for entrepreneurs to build their business on an ongoing basis, added Marlowe."
Every Door Direct Mail from the United States Postal Service allows SMB business to reach every home, every address, every time. Small businesses can find the customers that matter most. Postage is as low as 14.5 per piece – and you don't need to know names or street addresses. You simply identify the neighborhoods you want to target, and your printed piece is delivered with the day's mail to every address.
ABOUT TMONE:
TMone (pronounced T-M-one) is a leading in the USA call center business process outsourcing firm specializing in Customer Relationship Management (CRM), Technology Integration, Inside Sales and Customer Service Selling (CSS). When it comes to business-to-business (B2B) and business-to-consumer (B2C) customer interactions, TMone is unsurpassed in its ability to provide best in class results in performance, cost containment, quality and client satisfaction. This approach has made it one of Inc. Magazine's Fastest Growing Private Companies in America five years in a row. Headquartered in Iowa City, Iowa with additional service delivery facilities in Des Moines, Iowa, Dakota Dunes and Spearfish, South Dakota TMone is now hiring.

PR Newswire (http://s.tt/1kost)

Thursday, August 9, 2012

CenturyLink Q2 revenue rises to $4.61B with increased broadband, business service sales August 9, 2012 | By Sean Buckley


CenturyLink (NYSE: CTL) reported on Wednesday that Q2 2012 earnings rose year-over-year due to an uptick in both consumer broadband and strategic business services.
For the quarter, operating revenues were $4.61 billion, up from $4.41 billion in Q2 2011.
The service provider said the revenue increase was the result of $278 million of revenue contributions from the Savvis acquisition it completed last July in addition to consumer broadband and its emerging Prism IPTV service.

Of course, the revenue increases were offset by expected declines in legacy service revenue due to the impact of access line losses and lower access revenues.
Here's a breakdown of the service provider's key unit metrics:

Regional Markets Group (RMG): During the quarter, RMG reported $2.48 billion in total revenues, down 2.6 percent from Q2 2011, a factor it relates to legacy service declines. Alternatively, RMG strategic revenues rose 5.8 percent over the same period a year ago to $894 million. On the services side, it reduced access line loss by 22 percent as the line loss trend improved during second quarter 2012 to a 6.1% annual decline compared to a 7.4 percent annual decline in Q2 2011. Once again, the star performer in the RMG portfolio was broadband. It added over 18,000 high-speed Internet customers, ending the quarter with a total of 5.76 million subscribers. It also expanded the number of Prism TV subscribers by 11 percent in second quarter 2012 from first quarter 2012 and increased penetration of available homes in our markets to more than 9 percent.
Wholesale Markets Group (WMG): Like other telcos, CenturyLink reported that the wholesale segment saw "modest" revenue growth as fiber-based revenue offset expected decline in copper-based revenue. Driven by the fiber and Ethernet-based service sales to wireless operators, WMG's Q2 strategic revenues rose 2.1 percent over Q2 2011 to $572 million. During the quarter, it completed almost 1,350 fiber builds to cell towers and over 2,000 year-to-date, ending the quarter with about 12,150 fiber-connected towers. The service provider said it's "on track to complete 4,000 to 5,000 fiber builds in 2012."
Enterprise Markets Group (EMG) – Network Services: CenturyLink's EMG revenues were $333 million in the quarter, up 2.8 percent over Q2 2011 due to high bandwidth services sales. Driven by higher than anticipated strategic services growth in Ethernet and MPLS, overall EMG total revenues rose 2 percent over Q2 2011 to $648 million.

Enterprise Markets Group (EMG) - Data Hosting Services: EMG - Data Hosting, which consists mainly of Savvis' operations, reported that operating revenues rose 6.5 percent to $277 million due to the result of strong managed hosting (including cloud), and colocation services sales. To build a foundation for future revenue growth, it announced planned data center expansions in seven markets, including four that went live in Q2.

"As we enter the second half of 2012, we remain focused on investing in broadband expansion and enhancement, Prism TV, fiber-to-the-tower and managed hosting and cloud computing services in order to maximize the opportunities for future revenue growth," said Glen Post, CenturyLink's CEO and Chairman, in the earnings release.

Looking towards Q3 and the total year 2012, CenturyLink said that operating revenues will be "negatively impacted" by the decline in access revenues due to the FCC's USF/ICC Transformation Order.
It has forecast Q3 2012 operating revenue to come in between $4.54 to $4.59 billion and $18.3 to $18.4 billion for the full year 2012.
Shares of CenturyLink were trading at $43.42, up $1.40, or 3.33 percent, in morning trading on the Nasdaq stock exchange Thursday.

Steven Kirchner becomes Telecommunications Expert with Expert Network Group, LLC


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Expert Network Group, LLC (ENG) provides institutional clients with direct access to a global network of carefully vetted experts. Coverage spans all industries and along every point of the supply chain. Our portfolio includes seasoned veterans who understand the dynamics of their industries and possess a prescient sense of future trends. This can include former executives, CROs, doctors, direct researchers, distributors, suppliers, customers, competitors, and a myriad of other experts elusive to the investment community. Our focus is on experts who are not available through other networks.

ENG employs a team of professionals who recruit leading information providers and identify key industry trends. We specialize in quickly fulfilling custom research requests with expert consultations that are specific to our clients' needs. All client requests and inquiries are handled with the utmost confidentiality.

ENG's best of breed compliance protocol provides clear and concise engagement terms so that regulatory risk to both client and expert is mitigated. ENG does not provide opinions or offer investment advice. It is at the client's discretion to ask questions and draw conclusions from the various 1x1 expert exchanges coordinated via our ERMS software.

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How to save money while making your communications (voice and data) decisions


After 12 years of Management and Executive Management for 3 different companies that provided telecommunications products which were limited to the attributes of their overall network capabilities and product offerings it made sense (to me) to provide options, not based on the limitations to the individual providers, more so on meeting the prospective customers needs no matter who the the access provider is.

This has been achieved by surrounding ourselves  with 30 of the largest carriers in the country. We are also enjoying the large movement from conventional servers to cloud services. There is commonly an intricate  relationship between the access and cloud providers. Although the larger  Carriers would like you to believe the relationship should be one to one, we are seeing the diversity of offerings from numerous providers that lend us to believe choosing the cloud provider to be a separate decision making process.

Our focus is to best utilize bandwidth (for voice and data) through technology. Integrate MPLS when needed and reduce overall operating expense. Freeing your employees time and your financial resources to be applied in other areas of your business to promote profitable growth.

Finally, it's imperative that a Solutions Provider that has so many resources through its numerous provider's have staff that understand the technology to help guide the providers engineers through the process. We have done this through a former CIO of a fortune 1,000 company as a consultant for internal networks and our Vice President of Operations, Manual Raynal, who reviews all proposals for technical assessments as well as costs.

Wednesday, August 8, 2012

AT&T wireline union workers in East, West regions go on strike Existing contract covers 20,000 employees.


August 8, 2012 | By Sean Buckley
AT&T (NYSE: T) wireline workers on the East and West Coast represented by the Communications Workers of America (CWA) union began a strike on Tuesday.
Covering over 20,000 employees, the contracts expired on April 7. The West contract covers over 17,000 wireline workers in California and Nevada, while the East contract covers more than 3,000 wireline employees in Connecticut.
Like fellow ILEC Verizon (NYSE: VZ), AT&T and the union have been battling one another over various benefit issues including paid time off and health care costs.
"A strike is not in anyone's best interest, and it's unfortunate local union leaders in the West and East regions chose to take this action, especially considering we have already reached agreements with local CWA and IBEW leaders in other contracts where employees perform the same type of work," AT&T said in statement.
Candice Johnson, a CWA spokeswoman, disagreed with AT&T's contention.
"These strikes are centered around unfair labor practices, denying workers the right to engage in protected activity, such as union activity," Johnson said in a Bloomberg article 
In related union news, AT&T Southeast, which was formally known as BellSouth, reached a tentative agreement with the CWA covering 22,000 employees. This new agreement, which will be submitted to union's membership for ratification, covers wireline employees in Alabama, Florida, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, South Carolina, and Tennessee.
Last month, AT&T reached a tentative agreement with the CWA union covering wireline workers in both the AT&T Midwest region and AT&T Corp (CWA Communications and Technologies unit).
To date, the telco said it has completed agreements almost 48,000 wireline employees.
AT&T said the new three-year agreement, which replaces a tentative agreement set to expire on August 9, with AT&T Southeast "includes wage increases in each year and modest pension increases."
Read more: AT&T wireline union workers in East, West regions go on strike - FierceTelecom http://www.fiercetelecom.com/story/att-wireline-union-workers-east-west-regions-go-strike/2012-08-08?utm_medium=nl&utm_source=internal#ixzz22ysIROpQ




The death of POTS is greatly exaggerated


But the definition is changing: What should it become?
August 7, 2012 | By A. Michael Noll
It seems popular today to speak of the impending death of POTS (Plain Old Telephone Service). But if "Phantastic" is substituted for "Plain," POTS is much alive and booming.
The question is, what does POTS mean? Certainly the technology of telecommunication has progressed significantly over the decades. Strowger switching was made obsolete by crossbar, and then came electronic switching, and then digital, and today packet. Transmission technology progressed too from twisted pair through coax to optical fiber. But the signals carried and switched remained pretty much the same: voice, audio, video, and data.
People still speak over a telephone--be it wireline, wireless, or the Internet's VoIP. The modality is still human speech, with all its intimacy and personality. People still listen to the radio--be it in their cars or at home over airwaves or the Internet. People still watch video--be it over the airwaves, coax, fiber, or the Internet. And telegraphy of the distant past is back in the form of today's e-mail and texting.
Telephone service stopped being "plain" a long time ago with the introduction of such services as caller ID, call waiting, call forwarding, and answering machines. And then wireless cellular service came so that people could be reached anywhere, anytime.
Of course, the provision of POTS over twisted pairs of copper wire with centralized circuit switching is quickly becoming a technological relic of the past. Newer technologies have replaced this relic, such as optical fiber, coaxial cable, and packet switching. But the technology should not define POTS.
There are policy issues when a service becomes defined by the technology. Telecommunication--meaning two-way interaction--eclipses the technology of how it is provided. Yet policy relics of the past--such as universal service, subsidization, 911, rural--remain and are enforced on narrower service definitions from the distant past. Policy that is technology specific does not make sense. If it looks like telephone service, it is and should be regulated as such, although the need and specifics of regulation and subsidization might need re-evaluation.
Lawyers and policy makers have a tendency to become overwhelmed by technology--and today's mantra that "the Internet is everything." The policy issues should be examined in terms of the services provided over telecommunication systems--not the technology of how the signals are transmitted and switched.
In terms of POTS, "Old" means familiar; the modalities of communication--voice, text, images. The "T" stands for "Telecommunication," more broadly than just the Telephone. "Service"--not technology--is what consumers care about. And as stated at the beginning of this article, "P" not longer stands for Plain. 
The topics discussed in this article are covered in detail in A. Michael Noll's book, "The Evolution of Media," published by Roman & Littlefield. Noll is professor emeritus at the Annenberg School at the University of Southern California.
Read more: The death of POTS is greatly exaggerated - FierceTelecom http://www.fiercetelecom.com/story/death-pots-greatly-exaggerated/2012-08-07?utm_medium=nl&utm_source=internal#ixzz22y4U7yAt
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EarthLink revenue slips 2% sequentially to $338M in Q2 2012


Narrows business services losses and announces departure of COO Joseph Wetzel
August 7, 2012 | By Sean Buckley
EarthLink (Nasdaq: ELNK) on Thursday reported that revenue declined on both a quarterly and year-over-year basis.
The service provider's revenue declined sequentially to $338.2 million, down 2 percent from Q1 2012, and 7 percent from the same period a year ago.
Business services continued to be the main driver in EarthLink's revenue mix, accounting for 76 percent during the quarter, up from 74 percent in Q2 2011. However, business services revenue declined $2.8 million, or 1 percent, sequentially.
A key piece of EarthLink's business service growth is its movement to become more of a solutions provider that offers various traditional connectivity services and IT solutions to its clients. To bolster that solutions provider position, the service provider named former XO executive Michael Toplisek as its new executive vice president of IT services and introduced an IT help-desk service.
The service provider also saw gains in the consumer access segment with revenues rise 67 percent from Q1 2012 and 65 percent from Q2 2012. It narrowed residential subscriber churn to 2.3 percent from 2.5 in the previous quarter and 2.6 percent in the same quarter a year ago. 
Financial analysts, according to data compiled by Bloomberg, forecast net income of 3 cents a share on sales of $339 million.
EarthLink's management also adjusted their financial guidance for the full year 2012 with the expectation of adjusted EBITDA of $275 million to $285 million, capital expenditures of $115 million to $125 million, and net loss of $4 million to $1 million.
In related news, EarthLink announced that COO Joseph Wetzel would leave the service provider at the end of the year as it launches a number of key pieces of its new integrated OSS platform. The service provider did not name a successor to take Wetzel's place.
Shares of EarthLink were trading at $6.56 in late day trading on the Nasdaq stock exchange on Monday.
Read more: EarthLink revenue slips 2% sequentially to $338M in Q2 2012 - FierceTelecom http://www.fiercetelecom.com/story/earthlink-revenue-slips-2-sequentially-338m-q2-2012/2012-08-07?utm_medium=nl&utm_source=internal#ixzz22xy0QKrd
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Thursday, August 2, 2012

The Future of IT: Renaissance or Revolt? Robert DeFazio July 31, 2012



It has been asked if IT needs to break out of the mold that has enveloped it. In order to move beyond its stepchild role of tending to the messy details of data management and to come into its own right as a new game changing force that is no longer managed by bean-counting CFOs, it has been suggested that it must evolve. The hierarchies of database administrators, application managers, and the like must fade away and yield to the brave new world of big data, analytics, and ubiquitous information, all managed by a flatter organization structure – in short, to go where no man has gone before.
In many ways I agree with the spirit of assertion, but I disagree with it in one very fundamental way, namely that IT suffers from being a corporate fiefdom in which the urge to control impedes overall business profitability. One area is in charge of security, another area is in charge of databases, another oversees change management, and yet another is in responsible for application implementation. The list goes on and on and is as long as there are discreet areas of specialization. While IT personnel tend to be more willing to collaborate than perhaps other kinds of business people, the collaboration is hamstrung by the processes that are erected to produce plausible deniability in the event of an error that impacts other areas of business. IT people, perhaps more than any other kind of enterprise employee – except for lawyers –, have a great fondness for paper trails that authorize them to take actions at the behest of another. The end result is that while the business leaders of a company might spend many hours of time spread out over several months before reaching a decision that impacts operations, IT’s involvement may well extend beyond a year or more for implementation, and that almost always calcifies an organization.
If implementation takes such a long time and incurs the attendant heavy costs for so doing, it makes business leaders less prone to respond quickly to basic changes in the market for what it produces. They argue that changes need to be batched so that the scope of work is big enough to justify the expense of the life cycle of software development to a board of directors and shareholders. While not always the primary reason, this is certainly one of the main reasons that very large companies succumb to small startups whose wedding to the IT undercarriage of their businesses is not yet a done deal.
One of the bigger problems that is created by both the business and IT arms of an enterprise is the disparity of applications that end up being selected to accomplish the goals of the company. Often those applications don’t talk to each other unless they are forced to do so using multiple kludges consisting of the IT equivalents of chewing gum and bits of string. One system exports a comma-delimited text file to a directory from which another system picks it up. There is no real interactivity and certainly no real chance of gracefully handling data consistency errors. End users assume that the screens that they see represent the company gospel, but only the IT people know just how uncertain and how poorly understood the entire process is. Errors creep in via the most unexpected ways and are often undetected for months or even years simply because each corporate department functions like the silos one sees on a Midwestern farm: corn in one silo, wheat in another, and nary the twain shall meet. As a test of the verity of this situation, try listening in on a discussion between a programmer and an accountant as each geek-speaks at the other and denies that there is any possibility of doing things any other way than that currently in use.

At the root of the problem is the way that IT is still done, even in this age of object orientation, RAD, and AGILE project management. The tools used to develop software are, to be quite kind, clumsy and intentionally so. Why? It is because the makers of software development tools market their products either to developers or to developers who have been promoted upward to management. Software developers, at least all the ones that I know and without exception, regard themselves as artisans who produce elegant, efficient code and not as robots that spew out hundreds of thousands of lines of code. Their interest is in having the flexibility to produce code that gets the job done and which also has a certain “zing” that allows them to put their mark on the final product. This code craftsmanship would be wonderful if businesses did not find that they have to reinvent themselves every five years or so. Because the tools are what they are, it is often necessary to engage more high-end talent for the task than would be sought for a similar sized task in any other area of business. This provides a strong inducement to hire contractors who are there solely for the project. Since they are not likely to become employees and thus part of the human pool of knowledge with respect to developed applications, a great emphasis is usually devoted toward the production of documentation.
There are few developers who thrive when instructed to write documentation. Generally, they don’t like to do it, and when they are able to offload the task to one or more technical writers, even then they dislike having to educate the writer about all the messy details that went into the production of the end product. The consequence of this is that the produced documentation tends to be inadequate to educate the next contractor who will be called in to fix the application when it fails. The customary documentation contains an overview of the project; a checklist for the setup of the database and application; a database diagram; a list of stored procedures with their parameters, data types, and output; a description of security features; and so forth. Unfortunately, this is not all that helpful. What is really useful for subsequent techs that come along later to support the application is a process map that describes:

1.            How the various reports and lists that end users consume are produced from start to finish,
2.            What stored procedures are used in each function of an application,
3.            Which stored procedures are dependencies of other stored procedures,
4.            What automated processes are scheduled by the IT department that are essential to the proper       operation of the application,
5.            When those automated processes run, and
6.            What other systems consume data or add data to the database for the application.

Few technical writers or programmers include such information in the total documentation package because it is so tedious to produce, and yet it is precisely the kind of information that allows a contractor to “cut to the chase” when an urgent issue must be addressed. Absent this information, the engagement of an outside contractor tends to be much longer than would be necessary if such information were available.
Should IT become an ascendant business force within the organization that allows it to step outside of the financial controller’s managerial domain? I contend that IT has a long way to go before it becomes qualified for such a promotion. At the moment, it is too much in love with insular management practices that many on the operations and marketing side of business have long ago abandoned. Even the venerable IBM, which one would suspect would be the paradigm of an ascendant IT mentality, has placed limits on such thinking. When it found in the 1980s that its ability to get more business was being hampered by a glacial credit approval process, the first impulse was to automate what already existed. Two very wise business managers sensed that this was putting the cart before the horse since determining what was the actual obstacle to streamlining this critical step in gaining more business had not yet been done. They decided to walk a credit application through the process, going from desk to desk, and found that automation would only have saved a few minutes of time out of what was taking in some cases several months. The solution that finally worked and which reduced the process down to a matter of a few hours was one that involved changing business processes and elevating the permissibility of its employees to make decisions. Yes, automation was ultimately done to reflect this transformational approach to business processes, but the automation came after the fact, not before it.
The changes to IT that are needed to make its work product more useable is to produce development tools that end users can employ directly. To a limited degree, we can see this now in the form of ad hoc report generators and products like Microsoft Office, but this needs to go much further. It should be possible for an end user to describe what information he wants to collect, store, and reproduce; to draw a process using drag and drop tools that portray the collection, storage, and reporting processes; to click a button to have it created for him; and to enable him to edit the results by changing the screen positions of created elements and by applying levels of security. There are some tools that can do part of this now, but there is no tool that is designed for the end user that will produce bulletproof, hardened code that works easily and reliably.
The production of such a tool would idle many programmers, but like factory workers of a century ago whose time has come and gone, the same kind of sunset needs to be foreseen as a necessary part of the life cycle of IT workforces. In such a scenario, there would be no need for an evangelist from the IT department to woo and to lead the business users to a higher plane of greater business efficiency, largely because achieving it as an end user would be so facile. The purpose of IT would be largely that of preserving the safety of stored data, providing advice with respect to some of the finer points of using such tools, and educating users about new products. In short, IT would still tend to be a glass ceiling occupation for many within its ranks.

IT employees often find themselves uttering, like Rodney Dangerfield, “I don’t get no respect.” The way to address this imposed inferiority complex is to invent a better mousetrap than the kind that now exists. Smart people in IT need to stop taking comfort in the ways they have always done things and to start having the discomfort of treading into new territory that can conceivably yield a solution to business’ conundrum of needing to automate but not daring to do so because of the expense.
To be sure, a clever programmer who succeeds in creating very high quality end user tools will paradoxically make his own tenure less predictable due to a reduced need for people just like himself, but it is going to come eventually. It cannot be avoided. Just as Detroit was dragged, kicking and screaming, from producing land yachts with fins, lots of chrome, and massive engines, so IT will likely have to be dragged from its comfort zone to a new place in which it excises the vestiges of manually implemented, imperious digital resource control and replaces them with smart tools and processes that are so reliable that most will regard them as nothing more than process appliances that any employee could use.
Robert DeFazio is president at Calabria Consulting. He can be reached at rdefazio@att.net.
The opinions expressed herein or statements made in the above column are solely those of the author and do not necessarily reflect the views of WTN Media LLC.

Wednesday, August 1, 2012

IT Hardware


We want to be your one-stop shop for quality new, used and refurbished IT hardware. Our partner  buys, sells, leases, rents, consigns and trades just about every product line including Cisco, Sun, HP, IBM, storage equipment (including NetApp and EMC), Nortel, and telecom equipment. With each product, they offer a 1 year advanced replacement warranty to retail customers with the option to add MindSafe, our maintenance program. MindSafe has a significant number of advantages for customers, including the possibility to save 70% on traditional manufacturers warranties. They focus on lowering your costs for IT equipment while staying committed to top quality and a green environment.
In business for over 30 years, they are one of the largest resellers of enterprise-class equipment in the world. They sell and provide services internationally doing business on every continent. We buy and sell broker to broker and sell to end users and resellers. We are different than a VAR or a manufacturing representative. We stock over $30M in our hardware inventory, so when a customer needs a product, we have it.
They have over 100 IT professionals including 30 on-site manufacturer trained engineers that are specialists in their product lines. With this attribute, we provides excellence in logistical services. We are able to provide on-site configuration and testing of equipment for our customers at all times. No one else can provide this service.
Our mission is to be the most extensive network and hardware provider by building relationships, impeccable service, and certifiable quality.
 We specialize in midrange IT hardware from the following manufacturers:
Cisco®
Sun Microsystems®
HP®
IBM®
Storage Solutions

Our method is simple, but it has been key to our success:
Buy in huge quantities from suppliers all over the globe in order to find the best prices.
Run all equipment through our own engineering and refurb center so we can guarantee the highest quality.
Sell that equipment below the manufacturer's retail market price.
Maintain an enormous warehouse of inventory in stock.
Most of our customers are very specific and knowledgeable about their IT hardware and equipment product needs. They know they're getting the best deal because our computer hardware products are all ready for manufacturer's maintenance and backed by our quality guarantee.
 IT Hardware, Why Trust us as your source?
An industry leader in IT hardware.
30 years in business
60+ technology consultants
12 languages spoken in our sales group
30,000 sq. ft. engineering and refurbishing center (take a virtual tour)
80,000 sq. ft. warehouse (take a virtual tour)
$30m in inventory on-hand
Over 130 IT professionals
Same-day shipping available
Online Order Tracking
40+ manufacturer-trained engineers
Large technical support staff available for whatever professional service needs you might have – integration or implementation – data center move or compliance testing – we can help.
Worldwide logistics capabilities – we can usually have your equipment anywhere in the world in less than 48 hours – and often overnight.
We can offer equipment leases up to thirty-six months.
We can often rent you equipment for terms as short as a month.
We can offer aggressive trade in allowances for your excess hardware.

Google Fiber: High Speed Internet Helps GOOG Take Over the World


Google Fiber: High Speed Internet Helps GOOG Take Over the World
Posted:07/30/12By:Danny Guttridge

When I first heard the term “Google Fiber,” I thought Google (GOOG) was entering the health supplement market with another fiber powder. I was pleasantly surprised to find that it was not a fiber powder at all. Instead, it’s a fiber optic service; basically Google’s next stage in their plan to take over the world.
This new service is Google’s attempt at vertically integrating their business. Current Internet service providers (ISPs) offer speeds reaching up to 300 megabits-per-second (Mbps), specifically, Verizon’s FIOS service, which is also fiber optic. Google Fiber will offer speeds over three times that at 1,000 Mbps. The speeds at my house are around 15 Mbps, so I can’t really imagine how fast 1,000 is. For perspective, I can currently watch HD videos after a few moments of loading, but that’s only if it’s the only thing loading.
Wireless To-Date
The latest popular wave of wireless technology is 802.11n, which supports speeds up to 300 Mbps, though many routers operate at lower speeds. New wireless technology, 802.11ac, which operates at speeds of 1.3 gigabits/second (Gbps) has recently reached store shelves, but has not yet become popular because there was really no need for routers with that speed. Additionally, no computers are compatible with 802.11ac, though Google Fiber will likely push manufacturers to popularize the new wireless.
Google Fiber is only currently being offered as a test in Kansas City in both Missouri and Kansas. They typically implement a product or service as a test, and then learn from the experience to reduce bugs and optimize the next steps. We can likely expect an expansion to other cities after their learning period in Kansas City. Additionally, communities that sign up for Fiber will also receive the service at schools, libraries, emergency facilities, and more.
The pricing plans come in several different options. Kansas City residents are required to pre-register for $10 on top of whatever other plan they choose. The other plans include Gigabit Internet and TV for $120/month, Gigabit Internet only for $70, and regular Internet for a one-time construction fee of $300 that can also be spaced out to a monthly payment.
Business Section: Investing Ideas
We’ve seen Google do some amazing things, taking innovation to a new level with many different products. The Fiber service is a step in a complete integration of ISP into almost every aspect of our Internet experience.
This means that Google will begin competing at a higher level than most other ISPs that might not have the ability to keep up with them. Below is a list of companies that will likely be affected by Google Fiber. How do you think they will take on this new competition?