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2002, October

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Anatomy of a Search Engine: SearchDay Looks Inside Google

October 30, 2002 - a new article on SearchDay takes you inside the 10,000 server web resource that is the Google search-engine. Ever wanted to know how a search-engine works? Read this article to find out. ...Google, ...Searchenginewatch.com

See also:- Classic Web Marketing Resources

Is it a maze? No. It's Seagate's a-maze-ing new logo.

SCOTTS VALLEY, Calif. - October 30, 2002 - Seagate Technology today unveiled a new visual identity for its corporate brand.
Building on the traditional strengths of its brand, including the color green, the new identity includes a logo inspired by rotating storage media, and ideas and information in motion, as well as a new brandline, "We Turn On Ideas," reflecting the spirit of the Company and the meaning, relevance, and value that Seagate brings to its partnerships and its products. news image - Seagate's a maze-ing new logo
"Over the past few years, Seagate has undergone significant transformation to keep pace with changing market dynamics," said Steve Luczo, Seagate Chairman and CEO. "We've improved our manufacturing processes, streamlined our supply chain, built Six Sigma quality methodologies into our operations and business processes, strategically aligned engineering and design teams, and implemented new employee development and training/education programs around the world. Our decisions have been, and remain, informed by a set of values focused on our long-term goals for leadership, partnership and success. "This transformation has strengthened Seagate's brand," Luczo continued. "Just as our company has evolved, our brand has evolved. The new brand identity will act as a visual signal to all of our constituents that Seagate has changed." ...Seagate profile

Editor's comments:- OK hands up all those of you who can remember what Seagate's old logo used to look like? Chances are it's very few of you because most users don't have to open their computer to change the disk drives unless there's something wrong with the old one. And that's a strong argument for having no logo printed on the old disk drive (particularly if it's just crashed). But there's a growing trend for consumers to have more intimate contact with disks as external back up devices, or attachments to their PDAs and digital cameras, and that's probably what has fueled the need to design a prettier new logo. The "Intel inside" branding program worked for Intel to isolate its competitors like AMD. Seagate will have to invest heavily in advertising to become a consumer identifiable brand. That will mean spending more on advertising than they do on R&D, something which always comes as a cultural shock to technically rooted companies.

Way ahead in this race for storage consumer mindshare are companies like Sony. Way behind are stealth marketers like Fujitsu. Will Seagate become the best known disk brand to consumers? or will Seagate still be running round in circles focusing on technology while their rivals clean up in the mall?

There's a lot more to branding than meets the eye. My partner Janet Downes, at Downes Strategic Marketing, is delivering a 3 day course on branding this week at the Chartered Institute of Marketing in the UK.

IDC Finds IT Security and Business Continuity Market Poised to Double in Size by 2006

FRAMINGHAM, Mass. - October 28, 2002 - IDC says that despite the post-9/11 urgency for improved enterprise security and business continuity, corporate investment dollars did not immediately follow. After an initial spike in buying interest, many buyers postponed their purchases due to cost concerns and confusion about what products and services were needed. This "rethink" period is now coming to an end and, according to IDC, corporate spending for IT security and business continuity solutions is expected to grow from $66 billion in 2001 to $155 billion in 2006.

"Corporate buyers were confronted with a difficult situation – their understanding of the security need was high but their ability to quantify the risk of a security threat was low," said John F. Gantz, chief research officer and senior vice president at IDC. "This uncertainty about the risk caused many companies to delay their purchase decisions. The result was a gap between the need for security and corporate investments in security solutions."

Although spending decisions were delayed, corporate security remains the number 1 priority of IT professionals. Forty percent of almost 1,000 IT managers surveyed by IDC in July 2002 rated IT security as their highest priority. And security was the only area where the percentage of respondents saying spending increased in the past six months was greater than those saying it decreased. This security focus will translate into an $80 billion market in 2002 and will cause worldwide spending on IT security/business continuity to grow twice as fast as IT spending in general. IDC believes spending will more than double in five years, growing from $66 billion in 2001 to $155 billion in 2006. Although this spending will be almost evenly split on infrastructure, business continuity and information security, spending on business continuity products and services will account for a slightly larger part of the market.

"The current market is a confusing mosaic of undifferentiated products, services and companies offering solutions," added Gantz. "This confusion remains an inhibitor to corporate spending. The companies that will come out ahead in this environment are those that work closely with their clients to develop realistic risk assessments and plans that provide the most protection within the budget available." ...IDC profile

See also:- STORAGE Security

One Third of US Sun Resellers May Disappear

October 21, 2002 - a leader column in the SPARC Product Directory today reported that the total number of US resellers selling Sun based solutions has markedly declined for the first time in Sun's history. The publication, which has been tracking the number of Sun VARs for over 10 years, goes on to suggest that as many as 1 in 3 Sun VARs, in the US, will exit the Sun market, or go out of business during the next 6 months. ...Sun SPARC VARs - USA, ...SPARC Product Directory, ...Sun Microsystems profile

IDC Says PC Market Resumed Modest Growth in Third Quarter

FRAMINGHAM, Mass. - October 17, 2002 - IDC reports that the global PC market returned to positive growth in the third quarter of 2002 after five consecutive quarters of decline. Third quarter shipments were up 3.8% from a year ago to 32.6 million units. Growth was slightly behind forecasts of 4.0% growth but essentially met expectations of a seasonal increase amid difficult market conditions. Sequential growth of 6% was slightly behind average third quarter sequential gains of 9.2% reflecting the cautious market. Dell regained its number 1 position in total shipments, out shipping HP by 3.5%.

"Growth remains limited, but at least the market is moving in the right direction again," said Loren Loverde, director of IDC's Worldwide Quarterly PC Tracker. "We believe the market is a lot healthier than it was three months ago, as inventories have come down and expectations for growth are more realistic. While business investment remains soft, it continues to improve slowly and should gain momentum as company financials respond to restructuring efforts of the past year. The consumer segment is also improving gradually despite uncertainty in the market. At the moment we don't expect a lot from consumers in the fourth quarter, but there is potential for growth."

"This was the quarter of the behemoths," said Roger Kay, Director of Client Computing at IDC. "Despite having to digest the results of its recently executed merger with Compaq, HP managed to register healthy sequential growth and gained share in the United States. And Dell, the perennial U. S. leader, showed no signs of slowing its relentless pace as it grew to nearly 30% of the market." ...IDC profile

ISP Switching and SPAM Continue to Drive E-mail Address Changes

New York, NY and London - October 15, 2002 - A new study, to be unveiled next week at The 85th Annual Direct Marketing Association conference, indicates that e-mail addresses are changing at the rate of 31 percent annually, driven by ISP switching, job changes and consumer efforts to avoid SPAM. The e-mail survey, conducted by independent, third-party research firm NFO WorldGroup, concluded that, consequently, the majority of consumers lose touch with personal and professional contacts and with preferred websites. The study was commissioned by Return Path Inc., the leading provider of e-mail change of address services, and Global Name Registry, license operator of the .name top-level domain.

"The rate of e-mail address turnover continues unabated from the pace we first identified in September 2000," said Matt Blumberg, chief executive officer of Return Path, "And in addition to the impact on consumer relationships identified, there is a real and significant subsequent financial impact on reputable businesses that rely on e-mail to communicate with their customers."

The survey, conducted in August 2002, updates a similar study by Return Path and NFO WorldGroup from September 2000, which identified a 32 percent annual rate of e-mail address churn. The results are based on responses from 1,015 consumers from NFO WorldGroup's online panel of U.S. e-mail users over the age of 18. The panel is representative of U.S. online households. The survey revealed that consumers, on average, now own 3.1 e-mail addresses (up from 2.6 in the 2000 study). ...Return Path

What Will Branding Look Like in 2005? - New book - "FusionBranding" - Aims to Give Answers

ATLANTA - October 11, 2002 - Why do more than 90% of new products fail? Why do so many branding efforts never create a blip on consumer and business radar screens?

The reason: Many companies – especially those selling to other businesses – are failing to brand today because they are using the one-way marketing tactics of the 1970s, such as "positioning." That's the premise of a controversial new book, FusionBranding: How To Forge Your Brand For The Future, by brand futurist Nick Wreden. The book argues that companies need to start preparing now for the branding imperatives of the next decade, which will be substantially different than the marketing requirements of the past 30 years.

FusionBranding: How To Forge Your Brand For The Future by brand futurist Nick Wreden represents a fresh look at branding imperatives, especially for companies involved in selling to other businesses. These imperatives include customer equity, operational excellence and accountability. Core principles of FusionBranding, based on the fact that customers – not companies – define brands, are illustrated with numerous case studies. Chapters also include a "FutureView," which looks at branding in 2005 and beyond, "Takeaways," in-depth questions that can help readers apply FusionBranding principles, and "Resources" that feature books and Web sites about FusionBranding principles. Finally, key vendors are listed. 400 pages, indexed. Price - $29.95. ...sample chapter - Chapter 5: No Other Alternative: Doing Business on Customer Terms

CMP Electronics Mags to Close

Editor:- October 10, 2002 - according to a recent report in SourceWire. "CMP Europe is to close its electronics division. EE Times UK (Electronic Engineering Times UK), Electronic Engineering Design and Microwave Engineering Europe will all be closing at the end of November. The only magazine with a chance of being re-launched is Microwave Engineering Europe. Helen Duncan, current editor, said she might try to "do a deal" with pan-European publications, although it is very early days."

Let's do a reality check here.

Market researchers covering the EDA market were telling me as far back as 1997 that electronic component specifiers and designers in the US were using the web as their primary source of technology and product information instead of printed comics. But I guess that advertising agencies can always find people stupid enough to pay for pictures in magazines which no one reads or cares about for a long time before they're found out.

That's how the dotcom crash started in the first place, as ad agencies misdirected billions of dollars of shareholder money into TV ads and print ads thereby triggering the IT recession in the US. Now at last someone at the client side has calculated that it's not worth advertising in trade electronics magazines after all. How sad... Speaking as an ex electronics engineer and design manager myself, the only surprise is that these publications actually lasted so long.

Vendors Overstate eSourcing Savings, Forrester Calculates

London - October 9, 2002 - To maintain profit margins, European firms stampede into online sourcing, but firms fail to achieve hoped-for cost savings due to fudged price comparisons and weak purchasing compliance, according to a new brief by Forrester Research. Firms will focus on multicriteria value creation, not on one-off price cuts.

"In today's tough economic climate, European execs seek to enhance cost control with eSourcing technologies like auctions, tenders, and requests for quote," said Forrester Senior Analyst David Metcalfe. "Vendors of all stripes use claims of 10% average cost savings to drive demand for online sourcing technologies and wraparound consulting. But average price reductions defined in contracts don't add up. Indeed, Forrester believes online sourcing offers firms the prospect of year-on-year average cost savings of less than 5%, not the 10% vendors claim."

To calculate cost savings from eSourcing, firms must deduct license fees and consulting charges - additional fees that they didn't face before. Also, vendors sell their sourcing platforms by the module, but many clients don't have the contract management functionality needed to enforce changes in purchasing behavior - and some vendors lack contract management functionality entirely. For instance, plant managers distributed across the world continue to buy from regional suppliers, short-circuiting eSourced corporate deals. Firms took two years to discover that eProcurement requires process change to capture technology efficiencies; the redesign of the sourcing process adds additional change costs.

Forrester believes that as executives discover the true drivers of cost savings, they will shift their eSourcing focus from short-term price reductions to sustainable value creation on multiple criteria like product quality and delivery timeliness. To maximize value creation, firms should drive compliance with accounts payable integration and enhance requirements gathering with shopfloor integration. ...Forrester Research profile

See also:- Market research & STORAGE analysts, Storage Services

Remind Your Customers About the Benefits They're Getting from Time to Time

Editor:- October 8, 2002 - My Renault car is two years old this month and I thought I should book it in for a service. The service dealer asked me for the chassis number just so they could be sure they had the right parts. So I looked up the paperwork to get the information. Along the way I noticed the freephone number for RAC roadside assistance and recovery which came as a free offer with the car. Now the RAC never figured as an incentive when I bought the car. I just liked their ads (Size? It matters!") I found this model comfortable on vacation in France as a hire car and I preconfigured all the features etc on the Renault web site. Unfortunately I had to print out these details and take them to a dealer to buy it. But that was back in 2000, and you have to remember that the UK is at least 3 years behind the US when it comes to doing business selling things on the web.

Anyway, I couldn't remember how long the free breakdown recovery service lasted. From memory I assumed it was one year. As I already had the freephone number in hand I thought I'd ring it and find out. The phone was answered instantly and I was asked for my car registration number. I gave it and explained that I hadn't broken down, and just wanted to know when the service ended. I was surprised and delighted to learn that it runs for another year. So the original offer must have been 3 years. ...And yes, they will send me a reminder when it comes to an end.

Now I have to admit that the last time I was in a car which broke down a lot, was in my wife's special edition Jaguar. Occasionally the engine control unit would pine for the fiords and request a control-alt-delete type intervention back in the local Jaguar garage. That was expensive but the car always came back looking clean and shiny even if they didn't ever fix the basic problem (which may have been a design fault anyway.) The Audi which has replaced it, never goes to the garage and therefore never looks clean.

Back to the Renault... It's 20 years since any of the mass production cars I have ownded, ever stopped involuntarily by the roadside. That was a Ford Capri which I drove through what I thought was a puddle - but turned out to be a big dip in the road which was flooded by melting ice and snow. It was a moonlit night and as the engine stopped and the front of the car disappeared from view, I noticed big ice cubes floating past the driver's window at about neck height.

I knew then, I had made a serious miscalculation about the depth of the water and shouldn't have tried to drive through it at high speed. Luckily I was only a few hundred yards away from home and walked it dripping wet, still clutching the plastic carrier bag with the ruined Chinese take away in my hand. When, a few hours later, we towed my car backwards out from the water, I, knowing nothing about engines, naiively put the key in the iginition and miraculously it started. So I didn't need a tow home, but sat on the wet seat and drove it via the several mile unflooded route home. It took a few weeks to dry out inside and in the meantime I sat on a cushion and kept driving it the 40 miles or so commute to work. I bought several Fords after that. But my point is, that I have always been lucky with car reliability.

Anyway... today I was delighted to find out that my free RAC cover was actually for 3 years, and not just 1 year as I originally thought. If I had been getting a yearly update, the outcome wouldn't have been any different, because I didn't need the service, but for most people it would give peace of mind. So that's a trick the marketers at the RAC and Renault have missed. Make sure you don't.

2002 SAN and NAS Report by Peripheral Concepts, Inc.

October 7, 2002 - a new article published today by Peripheral Concepts, Inc. on STORAGEsearch provides a management summary of trends in the SAN and NAS market. Taken from their recently published market report called "2002 SAN and NAS Report - Infrastructure, Products and Market Opportunity" which costs $2,895, the article is a must read document for vendors and users who want simple clear insights into what's happening in the network storage market. ...Peripheral Concepts profile

Worldwide Chip Sales up 2.2% in August from July

SAN JOSE, Calif. – October 1, 2002– SAN JOSE, Calif. – Global chip sales totaled $11.9 billion in August, a 2.2% sequential increase over the $11.7 billion level reach in July, the SIA announced today. On a year-to-year basis, chip sales in August were up 14% from August of 2001, the first double-digit increase from the industry's cyclical low in 2001.

"The August data confirm that the semiconductor industry is in the midst of a broadly-based upturn", stated SIA President George Scalise. "After 5.6% sequential growth in the first quarter of 2002 and 5.8% growth in the second quarter, the double-digit year over year increase in August sales is yet further evidence of a sustained and durable recovery."

The wireless market continues to be the strongest end market, as reflected in brisk growth of chips used in handsets, as new subscribers continue to come on line in Asia and existing customers upgrade to newer technologies.

The PC market traditionally shows sequential third quarter growth as a result of back to school purchases and anticipation of the consumer holiday buying season and both trends were in evidence with sequential increases in Microprocessor and DRAM revenues. A number of product lines registered increases in Average Selling Prices (ASP's) in August, as rising demand and the prior runoff of inventory produced a better overall supply/demand balance. For tables and more data click on the link above. ...SIA

Why isn't the solid state disk accelerator market already a 5 to 10 billion dollar market?

October 1, 2002 - in a leader article on this week's STORAGEsearch news page the question is posed - why isn't the solid state disk accelerator market much bigger, given the compelling economic arguments for this technology? The blame is laid squarely at the primitive state of the SAN software management industry, which is still using out of date control models which look more like the chemical industry of the 1970s than the computer industry in the 21st century. Until storage software management tools become better adapted to users needs, they will slow down the adoption and limit the uptake of promising new storage technologies. ..Solid State Disks

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Other news on this page

Anatomy of a Search Engine: SearchDay Looks Inside Google

Is it a maze? No. It's Seagate's a-maze-ing new logo

IDC Finds IT Security and Business Continuity Market Poised to Double in Size by 2006

One Third of US Sun Resellers May Disappear

IDC Says PC Market Resumed Modest Growth in Third Quarter

ISP Switching and SPAM Continue to Drive E-mail Address Changes

What Will Branding Look Like in 2005? - New book - "FusionBranding" - Aims to Give Answers

CMP Electronics Mags to Close

Vendors Overstate eSourcing Savings, Forrester Calculates

Remind Your Customers About the Benefits They're Getting from Time to Time

2002 SAN and NAS Report by Peripheral Concepts, Inc.

Worldwide Chip Sales up 2.2% in August from July

Why isn't the solid state disk accelerator market already a 5 to 10 billion dollar market?

earlier news (archive)

removable storage
Removable disk drives on
STORAGEsearch.com
Removable storage came in useful when Megabyte went walkabout .
Nibble:- The New Goldrush? - Network Accelerators

S
ince the summer dozens of companies have announced a wide range of network accelerators. These are particulary important to Sun users because Sun Microsystems has been parsimonious with its SPARC CPU clock speeds in the past few years, offering speedups of x 1.2, when really users would rather like x 2.0. So if you want things to go any faster, you'll have to look at accelerator coprocessors instead of accelerated native SPARC processors.

In the security part of the market, joining the long established PCI crypto accelerator card first announced two years ago by Compaq, then badged by Sun, then dropped by Sun and now supported by SUFFIX Informatik, we now have some network security boxes which protect storage networks at wireline speeds. New vendors in this market include Cylink and Decru.

NAS is now a $3 Billion market, and will double in size in the next 2 years according to the 2002 SAN and NAS Report by Peripheral Concepts, Inc. So dozens of companies have announced TCP/IP Offload accelerator products to things move along a little faster.

In addition to the pioneer company in this market, Alacritech, and chip companies Intel and LSI Logic, two long established SPARC OEMs Antares Microsystems and Tadpole have publicly announced they are working on products for the Sun market. And Aristos Logic was the first company to reveal details of its storage processor in October 2002. So it won't be long before its competitors, still in stealth mode will have to put up, or shut up.

A full list of iSCSI and FCIP companies and Storage interface ICs, processors & accelerator chips can be seen on the mouse site, STORAGEsearch.com. So, despite the recession, Sun users are going to see some innovative new 3rd party products soon which will help them speed up their servers without breaking the bank.

Why do you need all these accelerator products? Won't software do the job?

The killer application for network accelerators is the real-time response for data replication and onsite and offsite backup windows. Without hardware accelerators your internal networks are more vulnerable to data loss and longer restore cycles. Meanwhile your ISPs are looking for any reason to charge more money, and if you need to buy extra bandwidth for your VPNs then the hardware accelerators could end up being much cheaper.

And I haven't even mentioned Solid State Disks because I thought that everyone already knows that they can make your Sun server run 20 to 30 percent faster. There are lots of application notes about that with a complete list of vendors also at the click of mouse.

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