Wednesday, September 30, 2009

Social Media Huddle: Practical insights from Salesforce.com, Juniper Networks, Dell and IBM

I was lucky enough to be asked to present a case study at Banner’s Social Media Huddle last week to a group of IT marketers interested in practical applications of social media.  The event was a follow-up to Banner’s Demand Generation Summit where social media arose as a key topic of interest.

Alongside myself were speakers from Salesforce.com, Juniper Networks and Dell.

All delegates got a copy of Banner’s cool social media map.

Robin Daniels from Salesforce.com explained how they were using social media channels to reach customers and prospects, plus six golden rules of social media.

  1. Conversations are a two-way street
  2. Be honest & transparent
  3. Be interesting & respectful
  4. Know your audience
  5. Quality matters
  6. Don’t share secrets

Of these, I believe the first is a real differentiator for social media.  Organisations are able to engage in a dialogue with their audience – whether this be via marketing, corporate communications, PR, customer service, or any other division within the company.  This ability for consumers to make real-time requests, complaints, queries and suggestions will require organisations to revisit and revamp their processes in order to respond.

Points 2-5 shouldn’t be anything new.  If we’re only now telling ourselves that we need to understand our audience, be mindful of what we say, and deliver something of value and quality, then we’ve been seriously missing the point with our marketing efforts.

And point 6 should be part of any organisation’s corporate policy.

What was fascinating to hear was how Salesforce.com, a company that was born on the web, has grown up with a culture that embraces these social media vehicles.

In fact, myself and my fellow presenters are all fortunate to work for companies that have seen the benefits of social media and embraced it.  Whilst this means that our approaches aren’t perfect and there is still work to be done to present a unified voice across the organisation, it does allow us to test approaches and learn from these lessons.  This can only stand us in good stead as the application of these vehicles becomes far more mainstream.

Sarah Wright from Juniper Networks talked about her experiences developing a community around Juniper’s Junos OS.  This was a fantastic example of building a community around the needs and wants of their customer base.  It was also an example of the time-commitment and resources required to manage such an undertaking.  Sarah is the only person managing community inquiries and as the community grows, it’s hard to see how this will be sustainable.

One can’t help but feel that programs such as these will become increasingly common-place as part of an organisation’s strategy, and that new roles will be born out of this.

I was the third presenter and gave an overview of the results and key lessons learnt behind IBM’s Virtual Forbidden City campaign, which used purely social media and online vehicles to generate leads for IBM’s service-oriented architecture solutions.  I will detail the key learnings from this campaign in my next blog post.

And finally, Kerry Bridge from Dell shared examples and tips around the ways in which organisations are using Twitter for business including @DellOutlet which has over a million followers and has made over $3million in revenue for Dell.

What was most surprising, when Kerry asked the audience (all marketing professionals) how many were on Twitter, only a couple of people aside from the speakers raised their hands.  I sometimes wonder whether those of us who have become sadly addicted have lost sight of the fact that a vast number of people still have no idea how to get started… or why they should bother doing so!  I noticed people furiously scribbling notes as Kerry outlined the basics for creating a profile, finding people to follow, and “twetiquette” (or Twitter etiquette).

The final part of the afternoon was an opportunity for all the speakers to sit on a panel to discuss how to make the case for social media, and the people and process element – i.e. who do you need to get involved and who should ultimately “own” it.

There were questions from the audience on whether or not social media was a fad and whether they should get involved.  Admittedly the entire panel are heavily involved in social media and therefore not the most impartial of judges, but the sentiment was unanimous – brands/products/companies are being talked about online whether or not organisations decide to participate.  The only way to influence the conversation and position your brand is to get involved.

As for ownership – everybody owns social media.  Everyone has the opportunity to have their voice heard.  Each department within an organisation has a different part to play and different objectives that can be met by engaging online.  The challenge arises in knitting these voices together to drive value, both for the community AND for your organisation.

Tuesday, September 29, 2009

Xerox To Buy ACS For $5.6 Billion To Dominate Office Services

Could It Be A Costly Gamble In These Economic Times?

Xerox Corp. (XRX.N) and new CEO, Ursula Burns, unveiled plans to buy Affiliated Computer Services Inc (ACS.N) for $5.5 billion. It would mark the biggest acquisition in Xerox’s 103-year history, joining a wave of hardware makers expanding into services. Shares of the printing company plunged on concerns that it was gambling on a major shift in strategy.

Aimed at snapping Xerox out of its funk, the acquisition was called a “game changer” that will help the company dramatically expand. Combining Xerox’s strengths in document technology with ACS’ expertise in work-process management and automation they hope to generate triple the revenue from services, which was $3.5 billion in 2008 to an estimated $10 billion next year. Ursula Burns, a Xerox veteran who took over in July, is definitely seeking new markets. “Through our strategic initiatives, it became clear that the $150 billion business process outsourcing (BPO) market is well aligned with our business and a key driver of long-term growth,” Burns told investors.

Quite lofty expectations many industry analysts perceive, especially with Global Economies still in flux, and many dramatically reducing purchasing budgets. ACS is also the larger of the two companies, with 74,000 workers compared with Xerox’s 54,000…so some restructuring is likely coming. ACS automates paper-based work processes and provides specialized BPO and IT services to a wide range of industries, including telecommunications, retail and financial services, health care, education and transportation.

Xerox, known worldwide as a hardware company specializing in copiers and printers was facing ever-increasing pressure from rivals such as Hewlett-Packard (who acquired EDS), and Dell (who acquired Perot–Presidential Candidate Ross Perot’s Company), in their purchase of service companies.

With its acquisition of ACS, Xerox will become a $22 billion company, of which $17 billion is in recurring revenue. Together, they hope to streamline the entire document production and information flow in offices on a global level, as Xerox hopes to scale ACS to markets like Europe, Asia and South America.

Ny Dell bærbar med trådløs strøm!

Jeg synes den her bærbar er super cool:

Det er som sådan ikke selve computeren der er noget ekstra ordinært fedt ved(udover Dell har oppet deres design en smule), men mere det den kan. Hvis man benytter dockingstaionen(som vist på billedet), oplader den computeren igennem den plade, som den står på. Det betyder at der ingen kabler er til den bærbar, er man på vej ud af døren, eller til møde løfter man således bare den bærbar computer. Super fed funktion i forhold til at skulle fjerne en masse kabler, eller skulle undocke den bærbar, som man ellers normalt kan.

Comon skriver følgende om den:

Teknologien er ikke ny. Firmaer som amerikanske WildCharge sælger allerede induktionsplader, der kan bruges til at lade f.eks. mobiltelefoner op. Men der er en række begrænsninger.

For det første skal telefonen lægges oven på pladen, der skal tilsluttes til stikkontakten med et almindeligt strømkabel, og dermed forsvinder lidt af den mobilitet, som ellers ligger i ordet »trådløs«. For det andet fungerer det kun, hvis telefonens bagklappe bliver erstattet med en særlig induktions-adapter.

Dells nye Latitude Z bruger samme teknologi, hvor computeren har indbygget en induktions-adapter, der lades op fra en induktions-plade på standeren. En fuld opladning tager omtrent samme tid som med kabler, ifølge producenten.

Den trådløse oplader er ikke det eneste nyskabende i Latitude Z, som også har en instant-on—funktion, som kører over et separat mini-bundkort med ARM-processor, hvor man kan tilgå sin mail, kalender, kontakter og Firefox over et separat OS.

Se mere om den på gizmodo.com hvor du også kan se en vidoe af den:

Monday, September 28, 2009

Xerox (XRX) Overpays For ACS (ACS)

Dell (DELL) paid a price that it could not defend, at least financially, for Perot (PER) earlier this month. Xerox (XRX) has decided to follow Dell down the same road by paying an extraordinary premium for ASC (ACS), a business outsourcing operator. The price tag is $6.4 billion in cash and stock.

Xerox has a market cap of a mere $7.8 billion. The company’s primary reason for making the acqusition is that “Xerox becomes a $22 billion global company, of which $17 billion is recurring revenue – a significant boost to our profitable annuity stream.” The market is likely to drive Xerox’s stock into the ground.

The $2 billion premium that Xerox is paying is especially hard to justify because ACS is trading near its 52-week high of $52. In other words, the market has said the company is fully valued. And, it is. Last quarter ACS made only $97 million of net income on $1.7 billion in revenue, an awful margin.

Xerox, its business already only a shadow of what it was when the company was one of the top IT companies in the world three decades ago, may feel it needs a deal, but it cannot afford a bad one.

Douglas A. McIntyre

Friday, September 25, 2009

OC Firm On Patent Offensive - socalTECH.com

An Orange County firm, SpeedTrack, has targeted Amazon.com, Best Buy, Dell, Costco, The Home Depot, and a slew of other firms over a patent the firm said is being infringed upon by the companies. According to SpeedTrack, the patent–U.S. Patent No. 5,544,360–covers how those retailers return searches for products on their web sites, so that users don’t see “cannot be found” in the results. SpeedTrack said the patent protects a method it calls “Guided Information Access”, which was created by co-founder Jerzy Lewak for its software, which the firm said is used by police departments to sort through criminal records data. The company is seeking damages for the patent infringement. SpeedTrack is being represented by Hennigan, Bennett & Dorman LLP in the patent lawsuit. Hennigan, Bennett & Dorman is the same law firm being used by Joltid, the firm owned by Niklas Zennstrom and Janus Friis, the founders of Skype, in a lawsuit against eBay over use of peer-to-peer technology in Skype.

Read the article at socalTECH.com

Tech Titans Holding $260 Billion In Cash (DELL, PER, ORCL, JAVA, MSFT, AAPL, IBM, GOOG, CSCO, INTC, HPQ, QCOM, EMC, YHOO)

The economy is obviously getting better, so long as you are not one of the unemployed or about to lose your job.  Now with more than a 50% rally from the March lows and a Dow Jones Industrial Average challenging the 10,000 level, suddenly everyone wants to put on their investment banker hats again and look for buyers and buyout candidates after deals are announced.  This week’s Dell Inc. (NASDAQ: DELL) deal for Perot Systems Corp. (NASDAQ: PER) was a $3.9 billion acquisition versus $12.7 billion in cash and equivalents held at the end of the quarter.  The Oracle Corp. (NASDAQ: ORCL) deal for Sun Microsystems Inc. (NASDAQ: JAVA) is valued at $7.4 billion, or $5.6 billion net of Sun’s cash and debt.  We went back through our list from September 2, 2009 where we noted that outside of the financials  in the 20 largest US companies had a cash hoard of $335 billion that could be used for mergers and acquisitions, and that is not accounting for lines of credit, stock or debt that could be sold, and other means of financing a deal.  While nowhere near all of the cash will ever be used, many companies could pay big dividends before any tax changes.

So we wanted to look through the technology sector and after we looked through the top 100 markets caps in our 24/7 Wall St. Real-Time 500 we added a few new additions in the tech sector that still had over $5 billion in cash.  Out if the $335 billion from those in the top twenty, we broke out Microsoft Corporation (NASDAQ: MSFT), International Business Machines (NYSE: IBM), Apple Inc. (NASDAQ: AAPL), Google Inc. (NASDAQ: GOOG), Cisco Systems Inc. (NASDAQ: CSCO), Intel Corp. (NASDAQ: INTC), Oracle Corp. (NASDAQ: ORCL).  Even after a huge rally, $335 billion and then some could go a very long way for strategic and bolt-on acquisitions as a positioning strategy for the next decade.  Now, going further down the list of the top 100 companies with $5 billion or more in cash from tech companies alone adds in Hewlett-Packard Company (NYSE: HPQ), QUALCOMM Inc. (NASDAQ: QCOM), EMC Corporation (NYSE: EMC), and Yahoo! Inc. (NASDAQ: YHOO). When we tally up all the cash, there is over $260 billion available from these few tech companies that could be deployed for mergers, acquisitions, or the good old dividends.  Again, that is before tallying up credit lines, factoring, debt sales, and other financing methods.
Hewlett-Packard Company (NYSE: HPQ) had almost $25 billion in cash and long-term investments.  Now that it has migrated away from just selling PCs and printers, we think that there will be a rather long lull before H-P tries to match its big buyout of EDS even if Dell is tip-toeing into IT-services and consulting with Perot.  But in the end, what we think may not matter.  Nearly $25 billion in cash when you know you will be profitable ahead leaves a lot of room to go out make purchases.

QUALCOMM Inc. (NASDAQ: QCOM) was the 29th largest company as of Wednesday with a $74.12 billion market cap. If you tally up its cash, short-term and long-term investments, it is sitting on almost $15 billion in cash and equivalents as of last quarter.  After all the lawsuits that the Jacobs team are settled, it might consider a way to deploy capital to get around future patent cases.  If only it was possible, although anything is possible.

EMC Corporation (NYSE: EMC) is the 64th largest in the country with a $34.7 billion market cap, and it is sitting on very close to $10 billion in cash and short-term and long-term investments.  The issue is that it just made the $2.1 billion deal for Data Domain, Inc. (NASDAQ: DDUP), but it also has over 50% of the float of VMware (NYSE: VMW) and that company is worth $17 billion.  EMC is likely in such a storage leadership position that it has to make strategic deals.  In that notion, EMC could be making $1 to $3 billion buyouts every six to twelve months.

Yahoo! Inc. (NASDAQ: YHOO) was the 100th largest company mid-week with a $23.6 billion market cap.  The distant #2 search player is hard to call a definite buyer  now because of new management and because of a new direction and restructuring.  But the company is still generating cash every quarter even if Google has dwarfed it, and the deal with Microsoft is going to add cash.  Throw in its other strategic spin-outs and asset sales, and suddenly Yahoo! may have a real desire to go for broke.  At the end of Q2 it held about $7.5 billion in cash and short-term and long-term investments.  As Yahoo! wants to get further into profitable content and user-centric interfaces, you could probably pick a hundred names for it to buy.  Carol Bartz is no meager CEO and she could probably even get into the auto business if she could make the case that it would take back ten points in the company’s share of search.

Microsoft Corporation (NASDAQ: MSFT) is still #2 with a $230 billion market cap mid-week has more than $36 billion in cash and equivalents. There is always the concern that antitrust issues will arise in any Microsoft deal, but that has not been the case in the search pact with Yahoo! so far.  There are very few add-on plays here for its O/S and Office software.  Other software, media, search, advertising-related, audio and communications plays would be the most logical targets assuming all the cash doesn’t go for buybacks or another big dividend.

International Business Machines (NYSE: IBM) was #9 on the top companies list and had a market cap of $159 billion and $12.5 billion in cash after spending $2.4 billion in the last quarter alone for dividends and buybacks.  IBM would likely look at another people-intensive or service-intensive deal, although there are random hardware and storage and systems possibilities still out there.

Apple Inc. (NASDAQ: AAPL) is now #8 on the America’s largest and it has long been a puzzle about what it would do with all that cash.  Its market cap was $165 billion mid-week, and its hoard of cash and equivalents is more than $31 billion.  Buying back its own stock would be expensive and maybe just silly and integrating an outside company into Apple might be far from easy.  With Apple’s 909.16 million shares, it could pay out close to a $34.00 per share dividend if it wanted to take the cash balance down to Zero and start all over again.

Google Inc. (NASDAQ: GOOG) now has a market cap of close to $158 billion now that its stock went back over $500… and a cash balance of roughly $19.3 billion.  Google may have the “Do no evil” mantra, but Google will now get into trouble for any deal it makes that is beyond an expansion.  If Google chose the cash dividend route, it could pay close to $60.00 per share and just start over on its cash growth game.   Also keep in mind one thing: in acquisitions, Google has tried to stay as content-neutral as it can so that it can still claim fair and open search and preference of content on the web.

Cisco Systems Inc. (NASDAQ: CSCO) was worth close to $135 billion in market cap mid-week and despite making deals all along the way and buying back billions worth of shares, its last quarter ended with close to $35 billion in cash and equivalents.  Its expansion has been on many fronts, so where it could do a deal would depend on the climate and upon what would give it a leg up for the next generation.  It also has preferred to make small strategic deals since its old Scientific-Atlanta deal.

Intel Corp. (NASDAQ: INTC) had a market cap of roughly $109 billion mid-week and has close to $19 billion cash equivalents before closing a recent deal.  It also had close to $6 billion in receivables and inventories.  Intel has been somewhat active via its ventures and in acquiring units or bolt-on companies like Wind River recently.  Intel has to be careful where it treads on anything processor-related, but there are dozens of core related technologies in computing and in communications that it would not fall under harsh antitrust reviews.

Oracle Corp. (NASDAQ: ORCL) had over $12.5 billion in cash at the end of last quarter that could be used for a deal if its Sun ambitions are thwarted by the dopes at the E.U. who think that Sun should keep losing money.  If that deal is somehow blocked, you know at least how much Larry Ellison is willing to dole out for a money-losing operation.

As a reminder, these market caps and figures were snapshots mid-week.  The top market caps were taken from our own 24/7 Wall St. Real-Time 500 list of American companies with the 500 largest market caps in the country.   There is also sometimes a discrepancy in the formal figures on the books and what companies state in their conference calls, and we have attempted to smooth that data as a result.

You can join our open email distribution list which goes out several times per week to be notified of key merger news, key analyst calls, top early morning day trader alerts, along with news of IPO’s, key offerings, guru investor data on Buffett and others, mergers, and more.

JON C. OGG
SEPTEMBER 25, 2009

Thursday, September 24, 2009

Over 30 Million Media Phones Expected To Ship in 2014

The “Fourth Screen” market is a sector of the technology industry that includes digital photo frames, and Internet appliances. A new ABI Research study called Connected Home Devices (Fourth Screen) takes a look at this market and what it will look like for remainder of this year up until 2014, covering the geographic areas of North America, Asia Pacific, European and RoW.

Out of the fourth screen market the fastest-growing device type is the media phone. Media phones are expected to generate a market value above US$5 billion by 2014. In 2014 alone, it is expected that 30 million media phones will be shipped. That’s pretty good growth considering the first media phones only began to show up late last year in the U.S.

[via Geek.com]