Technology Stock Roundup: Apps from IBM, Legal Probs for GOOGL

The Apple (AAPL)-IBM (IBM) alliance targeting enterprise customers made headway last week, even as Microsoft (MSFT) extended License Mobility to Google (GOOGL), which saw its legal troubles in Europe take a turn for the worse.

Apple/IBM Alliance Yields First Products for Enterprise

Earlier this year, Apple and IBM entered into an agreement to leverage each other’s strengths to grow at the enterprise. Apple brought its premium hardware and sales team to the table, while IBM brought its many years of experience at the enterprise and roster of enterprise customers. It was thought that Apple’s sales team had a good chance of convincing IBM’s enterprise customers to buy its products, particularly when they were coming tailor-made for the purpose, i.e including IBM’s specialized software to deal with their specific problems.

The first products intended to further this alliance were announced last week, with IBM unveiling ten new apps across different verticals including travel, banking, insurance, government, retail and communications. Dubbed IBM Mobilefirst for iOS, the apps are expected to help the companies tap the BYOD opportunity.

Microsoft & Google Make Strange Bedfellows

UK Watchdog Opposes Cookie-Based Tracking

A hundred Apple customers in the UK have sued Google for exploiting security loopholes to track them without their permission. Google is not the only party involved in such activities, but it is the largest and makes the most money, so is an easier target.

Google, which is incorporated in the U.S., objected to its being tried in the UK, but the High Court set aside its appeal, allowing the case to continue. Google has argued that the concerned data was anonymous and therefore not personal. Therefore, the use of such data generated through Google search couldn’t be classified as a violation of human rights as claimed. Similar proceedings back home hadn’t proved that it had caused anyone any harm, or any loss of property or money (although Google has paid fines to Apple’s Safari users in the U.S. for ignoring their desire to not be tracked).

The matter takes a new light in the UK however, where Google might be in breach of the Data Protection Act. And if it is not, there is a precedent that could work against it: in January, the High Court ruled that use of data generated through search could be deemed a misuse of personal data (since Google was making so much money from it), thus giving rise to more actionable claims.

The information commissioner Christopher Graham is also calling for a more comprehensive definition of damage. He is questioning the assumption that the data generated by search is personal and raising a question as to whether personal damage can include non-monetary damage as well.

Company

Last Week

Last 6 Months

AAPL

-4.58%

+20.21%

FB

+1.93%

+23.78%

YHOO

-1.47%

+39.39%

GOOG

-1.26%

-7.73%

GOOGL

-1.24%

-8.61%

MSFT

-2.99%

+13.81%

INTC

-3.85%

+29.76%

CSCO

-2.29%

+8.34%

GOOG = Class C shares (new, non-voting)

GOOGL = Class A shares (old, 1 vote per share)

Other stories you might have missed-

Corporate

Apple to Open New Research Site in Yokohama, Japan: In what looks like a strategic move, Apple has decided to open a research center in the country where its iPhone is the dominant smartphone by far. The company already has research centers in other Asian countries like China and Korea. Earlier this year, Cisco also decided to open a center in Japan, but its investment appeared related to the IoT. Apple has not yet said what the new center will focus on, but it’s not likely to be cheap.

Yahoo to Hold First-Ever Developer Conference: The event, to be held on Feb 19, 2015 will feature tools created by Flurry, one of the many acquisitions Yahoo (YHOO) has made since Marissa Mayer took over. The tools are expected to help developers track and analyze customer data and better monetize their offerings.

YouTube Chief Susan Wojcicki Joins Salesforce Board: Wojcicki, who has been with Google since inception has years of online advertising experience, which is expected to help Salesforce target and serve marketing departments that are increasingly spending on its technology. Salesforce (CRM) specializes in customer relationship management (CRM). Wojcicki will be its 11th board member and second female board member.

Google Closing Russian Engineering Operations: The facility employed 50 engineers who would be given the option to transfer to its other offices. The decision follows Russia’s new laws that require its citizens’ data to be stored in data centers within the country.

Western intervention in Russia’s altercations with Ukraine has also made the government less receptive to foreign technology companies. Google intends to ensure that its users’ interests are taken care of, so some staff for user support, sales assistance, marketing etc may be retained.

Google News Spain Will Close Down

New Technology/Products

Intel Announces New IoT Platform

Windows 10 Could Launch in Autumn 2015: Further details will be available on Jan 21, for which it is sending out invitations. But the new OS is expected to come with continuum, a feature that will adjust to the kind of device being used and facilitate app development on the platform.

Microsoft Launches Azure Government: Microsoft launched its cloud services for government customers at its Government Cloud Summit in Washington last week. The government cloud will include compute resources, storage, data, networking and apps that will be hosted in Microsoft data centers within the U.S. and managed by people that the government has cleared. Microsoft has promised a secure, hybrid setup that will integrate different data located on-premise, in the cloud or on individual data systems.

M&A and Collaborations

Cisco Buys Neohapsis

Royal Caribbean Selects Intel-Powered Tablets: Royal Caribbean is teaming up with Intel (INTC) to install Intel-powered and Dell-manufactured tablets at each of the 15,000 points of sale on its new cruise ship, Quantum of the Seas. Moreover, every crew member will receive Intel-powered HEXA Electronics tablets. The POS tablets will be equipped to carry out functions like check-in, reservations, entertainment options, activity scheduling and billing transactions. The crew tablets will include Intel’s productivity app bundle that costs $233 for Dictionary, DocuSign and McAfee Anti-Virus Plus apps among other things.

Some Numbers

More Users Posting Video to Facebook Directly: Facebook users were earlier in the habit of posting their YouTube videos to Facebook, but this trend could be changing, according to a new report from Socialbakers. This social media tracking firm analyzed 20,000 Facebook pages to come to the conclusion that YouTube videos on Facebook were on a downward trajectory, allowing video content created directly on Facebook to eclipse it for the first time this November.

Xbox One Finally Outdoes PS4: Microsoft said that according to NPD Group data, its Xbox One game console outsold Sony’s PS4 in the U.S. and UK for the first time this November. Exact numbers remain unannounced as of now. But NPD Group has said that overall console sales have jumped from last year, having been greatly boosted by the software/game bundles that console manufacturers have been giving away. Price cuts also played a role.

Microsoft Azure Taking Share: Media reports quoted Synergy Research Group in saying that Microsoft’s IaaS offerings are growing faster than Amazon’s. The research firm has said that market leader Amazon had a 27% share of the cloud infrastructure services market worldwide in the third quarter, which was down from 28% a year earlier. Microsoft on the other hand picked up 3 points of share during the same time period for 10% of the market.

Google Is Refunding in-app Purchases by Minors: Google’s agreement with the FTC requires it to refund at least $19 million. A request for refund of such purchases made between Mar 1, 2011 and Nov 18, 2014 needs to be registered by Dec 2, 2015 on the specified Google Play page set up for the purpose.

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