Friday, 14 February 2014

Google closes $3.2 billion purchase of Nest


The acquisition brings with it the Learning Thermostat and the Protect smoke and CO detector as Google looks to make its mark in the smart home

The Nest Learning Thermostat.
The Nest Learning Thermostat.
(Credit: Lindsey Turrentine/CNET)
Google has closed the books on its $3.2 billion purchase of Nest Labs.
In a filing with the Securities and Exchange Commission, the search giant said that the deal closed on February 7. Last month, Google revealed that it would acquire the maker of the Learning Thermostat and the Protect smoke and carbon monoxide detector as part of its goal tomake its mark in smart-home systems.
In its 10-K filing, Google revealed a bit more about its plans for Nest:
In January 2014, we entered into an agreement to acquire 100% of Nest Labs, Inc. (Nest), a company whose mission is to reinvent devices in the home such as thermostats and smoke alarms, for a total purchase price of $3.2 billion in cash, subject to adjustments. Prior to this transaction, we had an approximately 12% ownership interest in Nest, which was net against the total consideration. We expect that the acquisition will enhance Google's suite of products and services and allow Nest to continue to innovate upon devices in the home, making them more useful, intuitive, and thoughtful, and to reach more users in more countries. The transaction closed on February 7, 2014.

Dell workstations could embrace Thunderbolt later this year

Intel's high-speed port has been costly and immature, Dell argues, but that's changing. Expect Thunderbolt to arrive as Dell angles for growth in a market that's evaded PC sales declines.
Dell's precision M3800 is at the forefront of the company's push toward lower-cost, mobile workstations to rival Apple's MacBook Pro.
Dell's precision M3800 is at the forefront of the company's push toward lower-cost, mobile workstations to rival Apple's MacBook Pro. Unlike Apple's products, though, Dell workstations so far don't offer high-speed Thunderbolt ports.
(Credit: Dell)
A Windows PC maker could be forgiven for not leaping to embrace a technology like Thunderbolt that rival Apple has so loudly promoted. But it looks like Dell will build in the high-speed port technology on workstations coming as soon as this year, CNET has learned.
"I feel Thunderbolt has become more mainstream for the high end," said Pat Kannar, director of marketing for Dell's Precision line of workstation products. "We're definitely looking at adding it into systems coming out later this year and next year."
Dell tucked Thunderbolt into its high-end XPS One 27 all-in one PC in 2013, but the interface is a much more natural fit for workstations -- the higher-end machines people use for computer-aided design, video editing, scientific simulations, and other challenging tasks. It's an Intel interface, but Apple's enthusiastic endorsement gave Thunderbolt a strong Cupertino flavor, and the first devices that could use it were generally certified for OS X, not Windows.
Dell, the No. 2 workstation seller after Hewlett-Packard, is gunning for a better position in the workstation market. That's been a relatively small niche for years, but workstations are looking like a better business these days as the PC industry suffers quarter after quarter of declining sales.
In the third quarter of 2013, workstation shipments increased 3.6 percent to 973,000, said analyst firm Jon Peddie Research, which tracks the industry.
"Consumers are shifting en masse to tablets and smartphones, either not replacing PCs as often or deciding to go without altogether," said JPR analyst Alex Herrera in the company's most recent report. "But that trend is virtually absent in professional applications, where a tablet or smartphone can't possibly substitute for a workstation."
Thunderbolt's spread
Thunderbolt is spreading more widely now, though. Workstation market leader Hewlett-Packard added Thunderbolt to its workstations starting in 2013, including its all-in-one touch-screen model, the HP Z1 G2.
Thunderbolt first arrived on Apple's 2011 MacBooks, iMacs, and Mac Minis. In 2012, Apple added a second port to its top-end 15-inch MacBook Pro models.
Thunderbolt first arrived on Apple's 2011 MacBooks, iMacs, and Mac Minis. In 2012, Apple added a second port to its top-end 15-inch MacBook Pro models.
(Credit: Stephen Shankland/CNET)
And manufacturers who are afraid of commitment got an easier option last year with the arrival of PC motherboards to which Thunderbolt support could be added as an extra option. That lets PC makers advertise Thunderbolt support but not force customers who don't want it to pay a premium.
Why is Dell giving HP a year-long head start? Because Thunderbolt has been expensive and immature, Kannar said.
"When we were making a decision around Thunderbolt a couple years ago, we struggled on two fronts," he said. First, "At the time it was very expensive. It isn't that much less expensive now," he said.
Second, "We thought the industry ecosystem around Thunderbolt wasn't mature enough to make the investment, and the spec around Thunderbolt kept changing," he said. "We thought with docking solutions we have very high-speed IO [input-output]."
Thunderbolt offers high-speed data links to devices like external storage systems, monitors, and docking stations. The first-generation version offered speeds of 10 gigabits per second when USB was just making the jump to 5gbps, and the current Thunderbolt 2 incarnation doubled that to 20gbps before USB makes a planned jump to 10gbps.
It's spread across the entire Mac product line now, most recently the Mac Pro, which relies on six Thunderbolt 2 ports for adding expansion devices outside compact cylindrical body.
Intel believes Thunderbolt has the chops to become a mainstream technology, but for now, USB is fast enough for most people and, as its Universal Serial Bus name implies, ubiquitously supported.
"I don't know if Thunderbolt is going to reach $500 computers any time soon," Kannar said. "It's very expensive compared to USB 3, and the speed benefits are not really appreciated when buying a less expensive system."
Low-cost workstation push
Dell, which has borne much of the brunt of the PC market declines, is gunning for a stronger position in the workstation market. HP shipped 41.9 percent of the workstations, with Dell at 32.0 percent and fast-rising Lenovo at 13.7 percent, JPR said.
Workstation designers often dip into the server parts bin for extra horsepower and reliability, with features such as error-correcting memory and dual-socket motherboards that can fit more processors. Dell is hoping to expand by convincing people to buy lower-end workstations, though -- though still with hardware that passes certification from software makers like Adobe Systems, Autodesk, Avid, Esri, and Dassault Systemes.
"The entry-level desktop is fastest-growing portion of the workstation market and will surpass all other categories," Kannar said. The idea is to attract customers with a less onerous workstation price premium, and thereby tap into a much broader market.
Dell's top-end T7610 workstation is a hulking tower model that accommodates dual Xeon processors.
Dell's top-end T7610 workstation is a hulking tower model that accommodates dual Xeon processors. The company is angling for growth with lower-cost models.
(Credit: Dell)
"We're trying to help people understand that a workstation is something that's not unattainable for the enthusiast," he said.
Dell is also pushing toward mobile workstations, following the general shift in the PC market and catering to creative types.
"The value of mobility is incredibly important," Kannar said. The workstation sales split today is something like 2/3 desktops and 1/3 mobile. "In five years, it might be closer to 50-50," he said.
On the front lines of that push is the Precision M3800, a laptop with a very high-resolution 15.6-inch 3200x1800 screen, fourth-generation Core i7 processor, and Nvidia Quadro K1100M graphics processor. It's not as powerful as the Precision M4800 laptop, but it's much more practical to carry around: it's 18mm thick and weighs 4.15 pounds compared to 40mm and 6.35 pounds for the M4800. A starting price of $1,800 is likely to creep closer to $2,500 when equipped with 16GB of memory, a bigger SSD, and the high-res screen.
Taking on Apple
It's a workstation, but Dell knows it's competing directly with a machine that, by some technical definitions, isn't one: the MacBook Pro. Apple's PC business has fared better than most during the PC market declines, and Apple's higher-end laptops come up frequently in conversation with Kannar.
"We consider them a manufacturer that will appeal to a lot of our customers," he said. The M3800 matches the Mac's industrial design and durability, Kannar argues, and the company has commissioned a study (PDF) that shows the M3800 outpacing the MacBook Pro at some video and photo tasks.
He also likes Dell's more traditional tower design compared to the eye-catching Mac Pro.
"I think it's more an artsy crowd that's been tied to the Apple brand for so long," he said of the Mac Pro customer base. "I think ours are also very beautiful and are built with a bit more of a utilitarian ethic."

PCs sales may suck, but people still are buying Nvidia GPUs

The company reported better-than-expected fiscal fourth-quarter earnings and revenue as graphics chip sales climbed.
Nvidia signage at CES 2014.
(Credit: James Martin/CNET)
Nvidia can always count on the gamers.
The Santa Clara, Calif., graphics chipmaker on Wednesday posted fiscal fourth-quarter revenue and earnings that were better than analysts had expected. Nvidia also projected revenue of about $1.05 billion in the current period, higher than the $1 billion Wall Street anticipates.
A big reason for its better-than-anticipated results was strong sales of high-end graphics processors to PC gamers.
"Quarterly revenue came in well above our outlook, driven by PC gaming, capping an outstanding year for our GPU business," CEO Jen-Hsun Huang said in a press release.
Huang told CNET that Nvidia's GPU business is more closely correlated to major trends in the gaming market as opposed to what's happening in the PC industry.

The company reported that its GPU revenue totaled $947 million, up 14 percent from the year-earlier period. Graphics sales were particularly strong for desktop PCs, the company said, with its GeForce GTX GPU sales jumping nearly 50 percent. Notebook GPU sales declined slightly, in line with the overall market decline for notebooks.
"More young people are growing up and can afford to play games," he said. "More countries are getting into it...And production value is going up...We're benefiting from that."
Nvidia is traditionally known for making graphics processing units, or GPUs, found in computers and game consoles, but that business faces an uncertain future as the PC market struggles. Last year, PC shipments posted their worst-ever drop of 10 percent, according to Gartner. In the fourth quarter alone, PC shipments slid 6.9 percent year over year.
Nvidia has been counting on its Tegra mobile chips to help offset weakness in its core PC market, but so far it hasn't been enough. Its presence in smartphones has been minimal, and it also has been losing share in tablets to rival Qualcomm.
Tegra benefited from strong demand in the automotive sector during the fourth quarter. Sales rose about 18 percent sequentially, but the revenue of $131 million was still down 37 percent from the same period a year ago. Nvidia said the Tegra business declined because of weaker volumes of Tegra 4 versus volumes of Tegra 3 last year.
Huang said Nvidia's mobile business should benefit from the launch of its new K1 processor,first shown at the Consumer Electronics Show last month. The company also should get a boost from the use of Tegra in more cars, tablets, and other items, he said.
"Mobile is more than phones," Huang said during a conference call with analysts.
While the company's results were better than expected in the period that ended January 26, its net income posted a 16 percent drop to $146.9 million, or 25 cents a share. A year ago, Nvidia's net income totaled $173.97 million, or 28 cents a share. Analysts had expected earnings of 18 cents.
Revenue, meanwhile, rose 3.4 percent to $1.14 billion. Nvidia in November had projected sales of $1.05 billion, plus or minus 2 percent.

Lenovo net profit jumps 29 percent in 3Q on PC sales

Lenovo's third-quarter earnings were buoyed by its growing PC market share.
(Credit: Sarah Tew/CNET)
Lenovo Group announced Wednesday that its third-quarter net profit rose 29 percent from a year earlier after expanding its lead in PC market share.
The Chinese electronics giant reported that its net profit in the quarter ending December 31 grew to $265.3 million from $204.9 million a year earlier, beating the $243 million average analysts polled by Bloomberg had expected. The company's revenue grew 15 percent to $10.8 billion from $9.36 billion in the year-ago period, the first time it recorded $10 billion in sales.
Lenovo reported that it shipped 15.3 million PCs in its fiscal third quarter, giving it a quarterly market share of 18.5 percent, an increase of 2.4 percent. Market researcher Gartner reported last month that Lenovo held onto its lead in the PC sector by 6.6 percent to capture 18.1 percent of the market share in the fourth quarter of 2013.
Reflecting a two-year slide in global PC sales, Lenovo reported Wednesday that it shipped 17.3 million smartphones and tablets in the third quarter, surpassing the 15.3 million PC units shipped in the period. The company reported capturing 4.7 percent of the smartphone market as its shipments of the devices rose 47 percent to a record 13.9 million units in the quarter. Lenovo tablet shipments rose 300 percent year over year to 3.4 million units, largely on the launch of the 13-inch IdeaPad Yoga.
As the market for PCs continues to erode, Lenovo is turning its attention to the smartphone and server markets. Last month, the company announced its intention to buy Motorola from Googlefor $2.91 billion and pay $2.3 billion for IBM's x86 server business.

Pentagon says it didn't buy 80,000 new BlackBerry phones

Lenovo's third-quarter earnings were buoyed by its growing PC market share.
(Credit: Sarah Tew/CNET)
Lenovo Group announced Wednesday that its third-quarter net profit rose 29 percent from a year earlier after expanding its lead in PC market share.
The Chinese electronics giant reported that its net profit in the quarter ending December 31 grew to $265.3 million from $204.9 million a year earlier, beating the $243 million average analysts polled by Bloomberg had expected. The company's revenue grew 15 percent to $10.8 billion from $9.36 billion in the year-ago period, the first time it recorded $10 billion in sales.
Lenovo reported that it shipped 15.3 million PCs in its fiscal third quarter, giving it a quarterly market share of 18.5 percent, an increase of 2.4 percent. Market researcher Gartner reported last month that Lenovo held onto its lead in the PC sector by 6.6 percent to capture 18.1 percent of the market share in the fourth quarter of 2013.
Reflecting a two-year slide in global PC sales, Lenovo reported Wednesday that it shipped 17.3 million smartphones and tablets in the third quarter, surpassing the 15.3 million PC units shipped in the period. The company reported capturing 4.7 percent of the smartphone market as its shipments of the devices rose 47 percent to a record 13.9 million units in the quarter. Lenovo tablet shipments rose 300 percent year over year to 3.4 million units, largely on the launch of the 13-inch IdeaPad Yoga.
As the market for PCs continues to erode, Lenovo is turning its attention to the smartphone and server markets. Last month, the company announced its intention to buy Motorola from Googlefor $2.91 billion and pay $2.3 billion for IBM's x86 server business.

BBM iOS, Android users can soon make free phone calls

(Credit: BlackBerry)
BlackBerry Messenger users can tap into a potpourri of new features when the app is updated on Thursday.
Slated to reach iOS and Android users, version 2.0 of BBM will bring with it BBM Voice, a way to call your BBM contacts. Already available for BlackBerry OS, BBM Voice gives you the ability to make free phone calls to other BBM users via your Wi-Fi or data connection.
Another new feature on the list is BBM Channels, a chat discussion forum devoted to a variety of topics. Find a channel that interests you, and you can join in on conversations with other BBM users.
The update also offers new features to BlackBerry 10 users as well as those on iOS andAndroid.

BBM will come with Dropbox built in, so you can send a file directly from your Dropbox account to a fellow BBM user. Receive a file on your end, and you can add it to your Dropbox storage as well. You'll also be able to quickly share new photos, voice notes, calendar events, and other items with people during a chat session.BBM Groups helps you share pictures, lists, and appointments with people in a specific group, such as friends or family members. This feature is already available, but the new version of BBM will let you create larger groups with as many as 50 people.
Finally, BBM users keen to share their location during a chat can use a new feature provided byGlympse. You set a timer to share your current whereabouts with a fellow BBM user for anywhere up to four hours. When the timer runs out, your location becomes private again.
"BBM continues to grow in popularity and we are focused on providing our users the best, most full-featured mobile messaging and sharing experience in the market," Sean Hungerford, BlackBerry's director of BBM Product Management, said in a statement. "Our partnership with Glympse will help us take the BBM experience a step further by adding live location sharing and making the experiences our users share on BBM more dynamic than ever."
The new version of BBM will offer all the new features to BlackBerry 10 users. Those running BlackBerry OS5 and above will also get an update but one without the Dropbox integration and location sharing. BlackBerry didn't give a specific ETA for the update, saying it would roll out later in the day on Thursday.

Google's Woodside said to be hired as Dropbox's new COO

CEO of Motorola Mobility Dennis Woodside is said to be leaving to become Dropbox's COO.
(Credit: Spencer Platt/Getty Images)
Motorola Mobility's chief executive officer is said to be leaving the company to become Dropbox's chief operating officer, according to The Wall Street Journal. This news comes on the heels of Lenovo's acquisition of Motorola Mobility for $2.9 billion.
Dropbox is a popular online storage company launched in 2007 but to date has not yet had a COO. If Woodside becomes the company's COO, he'll be in charge of working to grow the service worldwide, along with hawking Dropbox's business software in an increasingly more competitive environment, according to the Journal.

Dropbox has continued to grow at a steady and rapid pace over the past couple of years. In September, CEO Drew Houston said the service
 had reached 200 million users, up from 175 million in July and 100 million in November. Last month, Dropbox secured a $250 million round of financing, which valued the company at $10 billion.Woodside has worked at Google for more than 10 years. After being Google's head of ad sales in the Americas, he was named the CEO of Motorola Mobility shortly after the Google-Motorola merger in 2012.
CNET contacted Dropbox for comment. We'll update the story when we get more information