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A Year Of Highs And Lows For IT Industry!
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A lot happened in the year 2008. Let's look back on just a few of those events that made the biggest impact on the IT industry in 2008.
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Friday, January 02, 2009:
Global recession, cost cutting, job cuts, weakening of the dollar, tightening of contracts, etc. -- the Indian IT industry saw it all in the year 2008. As we bid goodbye to 2008 and look forward to what 2009 has to offer us, it is now time to look back and remember the highs and lows of the year through stories that made national and international headlines in 2008.
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Motorola Splits Into Two!
In March 2008, struggling phone maker Motorola announced splitting of its business into two independent units. The company decided to separate its mobile devices business and broadband and mobility solutions business. The decision was made under tremendous pressure from Carl Icaan, a Motorola shareholder who contended that the company should split from its handheld devices business.
"Creating two industry-leading companies will provide improved flexibility, more tailored capital structures and increased management focus – as well as more targeted investment opportunities for our shareholders," said Greg Brown, president and chief executive officer, Motorola.
Motorola roped in Sanjay Jha, the chief operating officer of Qualcomm Inc., to take the helm of its handset division. Jha was also named the co-chief executive officer of Motorola. Jha began his career at Qualcomm in 1994.
Motorola Unit On Videocon Radar
With Motorola planning to separate its mobile business from other operations, Videocon was reportedly in initial talks to buy out the mobile handset business of Motorola. Videocon was in the race for Motorola's handsets as the company felt the company would have synergy with its upcoming telecom services operations with such a business under its fold. Despite the interest shown by Venugopal Dhoot, chairman, Videocon group, it was very much clear that it would depend much if the US-based firm Motorola was willing to sell the business.
One Laptop Per Child Loses Intel!
The rocky relationship between Intel and One Laptop Per Child (OLPC) project came to an end in January 2008. Intel pulled out of the project owing to disagreement and clash of interests. Intel also resigned from the OLPC board.
Intel and OLPC were working on an Intel-based version of the XO laptop but the OLPC insisted that Intel end its production of the Classmate PC. Even more surprising, Intel said that the OLPC actually asked the chipmaker to stop working with any company that produces low-cost laptops, such as Asus' Eee PC.
Apple's Thinnovation
Apple announced its ultralightweight Macbook Air at MacWorld 2008. The slimmest notebook in the world, as Steve Jobs, CEO, Apple described it, measures just 0.76-inches at its thickest and a mere 0.16-inches at its thinnest. Now that gives Apple ample reasons to soar high.
"We’ve built the world’s thinnest notebook — without sacrificing a full-size keyboard or a full-size 13-inch display," said Steve Jobs. "When you first see MacBook Air, it’s hard to believe it’s a high-performance notebook with a full-size keyboard and display. But it is."
MacBook Air has a stunning 13.3-inch LED-backlit widescreen display, a full-size and backlit keyboard, a built-in iSight video camera for video conferencing and a spacious trackpad with multi-touch gesture support so users can pinch, rotate and swipe. MacBook Air is powered by a 1.6 GHz or 1.8 GHz Intel Core 2 Duo processor with 4MB L2 cache, and includes as standard features 2GB of memory, an 80GB 1.8-inch hard drive and the latest 802.11n Wi-Fi technology and Bluetooth 2.1.
Capable of running for up to five hours on battery, MacBook Air includes AirPort Extreme 802.11n Wi-Fi networking, which delivers up to five times the performance and twice the range of 802.11g.
The MacBook Air carries a price tag of Rs 96,100.
Budget 2008-09: Little For The IT Industry
The Union Budget for 2008-2009 hit the information technology (IT) industry below the belt. The IT industry was disappointed over the absence of tax holiday extension in the national budget. The IT industry also expressed disappointment that its representation for exemption of dividend tax and employee stock options from FBT (fringe benefits tax) were ignored.
The industry termed the increase in excise duty to 12 per cent from 8 per cent on packaged software a retrograde step, as it would burden end-users of IT products and services in the domestic market. Shared Nasscom, "We have seen the advantage of IT deployment in the country. However, the imposition of service tax of 12 per cent on customised software and higher excise duty on packaged software could lead to increased cost of IT and could slow down the IT usage in the domestic sector. This impacts in particular, small and medium enterprises who have just started deploying IT."
"We expected the finance minister to extend the STPI scheme and also to rationalise the fees, taxes and duties applicable on the telecom sector, but this was not even touched upon by the minister in his budget. From IT and telecom industry point of view, apart from few small indirect positives, it was a lackluster budget," added Frost & Sullivan.
However in April 2008, the finance minister extended the tax holiday for software companies under the Software Technology Parks of India (STPI) scheme by a year. P. Chidambaram announced this while replying to a debate on his budget proposals in parliament. The extension of the tax exemption for IT-BPO companies to 31 March 2010 was like a breather for the SMEs and the BPO industry which were going through a hard time owing to falling dollar and feared recession in US economy.
The Visionary Behind Communication Satellites Dies!
Sir Arthur C. Clarke, who looked into the heavens with his homemade telescope as a boy and grew up to give the concept of geostationary telecommunications satellites, passed away on 19 March 2008 at his home in Sri Lanka. Visionary science fiction writer's work is marked by an optimistic view of science empowering mankind's exploration of the Solar System. Clarke's images of the future often feature a Utopian setting with highly developed technology, ecology and society, based on the author's ideals.
Microsoft OOXML Becomes An ISO Standard
After nearly 14 months of discussion, debate and controversies surrounding them, the International Organisation for Standardisation (ISO) finally declared in April 2008 that Microsoft’s Office Open XML (OOXML) file format received the necessary number of votes for approval as an ISO/IEC international standard.
Approval required at least two-thirds of the votes cast by national bodies participating in the joint technical committee (ISO/IEC JTC 1) to be positive; and no more than one-fourth of the total number of (ISO/IEC) national body votes cast to be negative.
Venkatesh Hariharan, co-founder, Open Source Foundation of India, said, “Standards in a crucial area like document formats impact the lives of all computer users daily. Therefore, the manner in which OOXML has been pushed through ISO to support the monopolistic aims of a single corporation is a matter of serious concern. The European Union is investigating the numerous irregularities on the voting around OOXML, and we will support their investigations.”
Goodbye Internet, Your Successor Is Here
Using a 2Mbps connection and thinking you are at the edge? Think again. The most loved Internet may soon look like the floppy drives of early 90s compared to the Blue-ray disc. The inventor of the Web, CERN, a Swiss organisation, is laying bricks for the next-age communication with the Grid. The Grid is supposed to be 10,000 times faster than the current connections. On the lines of the Web, the Grid will first connect leading research and academic institutions. But eventually, it will reach homes as well. However, home users may not be 'directly' hooked to the Grid, but service telecom providers, ISVs will take some advantage of these technologies. Some have already started using dynamic switching which creates a dedicated channel for Internet users thus increases data transfer rate manifold. The Grid has already connected Cern with 11 centres in the United States, Canada, the Far East, Europe and around the world.
Dell To Manufacture Laptops In India
Dell dedicated its computer factory at Sriperumbudur to the people and announced expansion of its manufacturing capacity in India, to commence production of laptop computers built for Indian customers, besides the current manufacture of desktops.
“Manufacturing the range of laptop computers in India will enable us to deliver even greater value and a superior experience to our customers, offering us competitive advantages in terms of speed delivery and cycle time. This is a vital next step in our strategy for leading growth and success in India,” said Rajan Anandan, vice president and general manager, Dell India.
HP Reveals Fourth Passive Circuit Element
The fourth fundamental circuit element in electrical engineering, called memristor, which has existed in theory for 37 long years, has been discovered by four researchers at HP Labs’ Information and Quantum Systems Lab, led by R. Stanley Williams. This scientific advancement could make it possible to develop computer systems that have memories that do not forget, do not need to be booted up, consume far less power and associate information in a manner similar to that of the human brain.
Google Goes To NASA
NASA and Google are planning to develop a new high-technology campus at NASA Ames Research Center in Mountain View, California. The search major and the space agency have inked a 40-year agreement under which Google will lease 42.2 acres of unimproved land in NASA Research Park at Ames to construct up to 1.2 million square feet of offices and research and development (R&D) facilities in a campus-style setting.
Microsoft India MD Quits!
In June 2008, Microsoft India lost its managing director Neelam Dhawan to Hewlett-Packard (HP) India. In March 2005, Microsoft Corporation India saw a change of guard with Neelam Dhawan taking over as its managing director, when Rajiv Kaul was promoted as the senior director of Windows Client Emerging Markets Group. The interesting thing here is Neelam Dhawan joined Microsoft India from HP where she worked as the vice president of customer solutions group; now after working with Microsoft India for three and a half years, she is moving back to HP India.
According to sources, Dhawan's departure from Microsoft came amidst the opposition from India and three other countries to the ISO's decision to declare the OOXML file format as an international standard.
Former Dell country head Rajan Anandan became the managing director of Microsoft India in August 2008.
PENSIEVE: Your New Personal Assistant For Memory
The busier life becomes, the easier it is to forget names, numbers and important dates. What if you get a personal assistant for your memory that could help you jog the memory and recall those everyday things you might normally forget? To help people remember key facts, IBM has come up with a software technology, nicknamed PENSIEVE by the IBM team, that uses the images, sounds and text recorded on everyday mobile devices to help people recall names, faces, conversations and other important information.
Atomic PCs For Rs 5,000!
In August 2008, Intel's Connected Indians movement saw the launch of various ambitious projects along with PCs starting at Rs 5,000. The devices are based on Intel’s revolutionary Atom processor; these low-cost devices will be available in the Indian market very soon. During the launch, A. Raja, minister of communications and IT, said that this could provide the ‘unconnected’ citizens with a truly affordable, simple and easy-to-use access to the Internet. He hoped that the price range will appeal very strongly to the broad citizen base. Raja called upon the industry to continuously innovate to create cost-effective Internet access usage models.
Bloomberg Kills Steve Jobs, By Mistake!
"I wake up every morning at nine and grab for the morning paper. Then I look at the obituary page. If my name is not on it, I get up," that's what Benjamin Franklin once said. But it was supposedly Steve Jobs who had to get up, even if his name was there, and tell the world, he is very much alive! Bloomberg mistakenly published the incomplete obituary of Steve Jobs, but before they could pull it down, it found ways all around the Web.
HP Laptops Can Run 24 Hours, Without Power!
HP announced an unprecedented milestone in mobile computing: up to 24 hours of continuous notebook operation on a single battery charge. As measured by an industry-standard benchmark, the new HP EliteBook 6930p configured with an optional ultra-capacity battery delivers up to 24 hours of battery runtime.
The initial ENERGY STAR-qualified HP EliteBook 6930p configuration starts at only 4.7 pounds (2.1 kilograms). It features a 14.1-inch diagonal widescreen display and is available with an optional, mercury-free Illumi-Lite LED display. Designed and tested to last, HP batteries benefit from a combination of HP engineering and energy-efficient notebook components such as Intel solid-state hard drives (SSD) and mercury-free LED displays. For example, the highly efficient HP Illumi-Lite LED display boosts battery run time by up to four hours compared to traditional LCD displays, while the Intel SSD provides up to a seven per cent increase in battery life compared to traditional hard drives.
Indian Flag On The Moon!
India entered history books of space missions by sending Chandrayaan-1, India's maiden moon spacecraft, into space in a textbook-perfect launch on 22 October 2008. One of the most successful rockets of India, the PSLV C-11, lifted off sharp at 6:22 AM from the Satish Dhawan Space Centre. The 1,380 kg Chandrayaan-1 was successfully put into Transfer Orbit around the earth by the rocket. The Indian space craft was carrying 11 payloads. Out of these, five were designed and developed indigenously in India, three from European Space Agency, one from Bulgaria and two from the US. These probes will explore the Moon over the next two years.
One of the primary objectives of the mission is to map the surface of the Moon. Till date, the images of certain specific regions of the Moon available are of low resolution. The Indian mission carries imaging systems which will further enhance the quality of the images manifold. Thus, it would be a picture-perfect Moon.
Axon Drops Infosys, Goes With HCL
Turning its back on a takeover by Infosys, the UK firm Axon accepted a £441 million bid from HCL Technologies in October 2008. HCL trumped Infosys' bid for Axon with a cash offer of 650 pence, valuing Axon at about £441 million ($780 million) and countering Infosys' offer valuing the UK firm at around £407 million.
On 25 November 2008, the board of Axon Group approved the £441.1-million acquisition bid by HCL Technologies. At the general body meeting, the majority shareholders voted in favour of HCL's 650 pence a share cash offer. Vineet Nayar, chief executive officer, HCL Technologies, commenting on the vote, said, "We are very pleased that the Axon shareholders have approved HCL's offer for the company. This acquisition continues to make sound strategic sense for HCL especially in the current macro economic situation."
Jurassic Park Creator Michael Crichton Is Dead
Michael Crichton, the author of the phenomenon Jurassic Park, died 4 November 2008 at the age of 66. He was suffering from cancer. Crichton was a multi-talented person. Regarded as the father of techno-thriller, he was also a film producer, film director, medical doctor and television producer. His books have sold over 150 million copies worldwide. His works were usually based on the action genre and heavily featured technology and tried to peep into the consequences of misuse of technology.
World Bank Blacklists Satyam!
Satyam Computer Services has been barred by the World Bank from doing any business with it for a period of eight years beginning September 2008; the revelation came as the World Bank finally confirmed a three-month-old report on 23 December 2008. The World Bank debarment is believed to be the harshest that the multilateral agency has imposed on any company since 2004.
The World Bank's ban on Satyam came at the most unfortunate moment. The Securities and Exchange Board of India (SEBI) was already investigating the $1.6 billion Maytas deal that Satyam Computer had recently proposed and then backtracked within hours of the announcement on the face of huge investor outcry.
In the wake of a controversial attempt to buy Maytas Properties and Maytas Infrastructure, nearly half the board of Satyam has resigned.
According to sources, Satyam was declared ineligible for contracts for providing improper benefits to bank staff and for failing to maintain documentation to support fees charged for its subcontractors. The bank's decision was effective in September 2008 and followed a temporary suspension that took effect in February 2008.
Reacting to the ban by the World Bank, Satyam released a statement saying, "It formally requested today that the World Bank immediately withdraw those statements, that it issue a new statement apologising to Satyam for the harm done to the company due to the Bank's actions, and that it provide Satyam with a full explanation of the circumstances related to the Bank's inappropriate statements."
Lok Sabha Passes IT Amendment Bill
The Lok Sabha passed the IT Amendment Bill 2006, which adds provisions to the existing Information Technology Act, 2000. The IT Act was enacted in the year 2000. It contains provisions regarding e-commerce, e-governance, cyber crimes, etc. Publishing and transmitting obscene materials in electronic forms, will now be punishable under the amended IT Bill.
Indian Prime Minister Takes First 3G Call
Finally, 3G magic has come to India with the launch of 'Jadoo'. During the India Telecom 2008 organised by FICCI, Prime Minister Manmohan Singh launched the country’s first 3G technology-based mobile services of MTNL in Delhi, making high-speed Internet on mobile, video-calling, video surveillance and live TV a reality in India. Dr Manmohan Singh inaugurated the new service -- MTNL 3G Jadoo -- by receiving a video call from telecom minister A. Raja, who was also present at the launch, thus demonstrating the capabilities of 3G services.
Initially, MTNL will be providing 3G services without any additional charge to its existing premium subscribers for a period of two months on a trial basis. MTNL will offer basic 3G services, including high-speed Internet, audio and video, and streaming in addition to live television channels on mobile phones.
The launch of 3G services in India will be a techie’s dream come true. It allows high-speed mobile broadband access at a speed of more than 386 kbps. 3G technology enables you to work out of your mobile instrument. It becomes your work station with high-speed bandwidth enabling video downloads and other critical functions.
By-- Monika Bhati, Sub-Editor, EFYTimes.com
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