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Showing posts with label IT Services. Show all posts
Showing posts with label IT Services. Show all posts

Tuesday, April 17, 2012

Companies Doll Out Internet Access Where Needed Only

Story first appeared on USA Today.

Companies are stepping up their efforts to slice and dice their data network's bandwidth to ensure that critical work flow isn't hampered by employees' ceaseless demand for greater Internet access.

With heavier files jamming the network, some employees in need of critical business applications are given more capacity on the data network than those with less pressing business need. Organizations see it as a necessity in order to achieve the right type of experience.

The problem of clogged networks has been exacerbated by the widespread use of streaming sites, such as Netflix and Pandora, and by employees tapping into corporate Wi-Fi to listen to music, watch video and use social networking sites on their personal devices — even if it's during breaks.

The issue is particularly urgent for global or national companies with far-flung branches. Candy maker Cadbury, a Kraft subsidiary, chose to manage the network used by its global offices more extensively after an audit found that 55% of its traffic was recreational, says the chief marketing officer at Exinda, which was a consultant to Cadbury. Each office now gets prioritization based on size or contribution, says a local Houston IT Services company.

At Georgia Southern University, game videos used by the football team or video-based student learning applications get priority over videos shared by students. Almost every company has a heat map of what it considers is important.

XO worked with a movie studio that has marked special network priority for video files that are delivered from movie production sites to post-production digitization studios. Another XO client sends its buy and sell orders on an entirely dedicated network so that they are processed in a timely way.

While some companies even manage their bandwidth based on hours — more and faster Internet access for those who work at night — others lower the amount of bandwidth assigned for phone calls in the evening. That way, large data files can be transmitted quickly and seamlessly when fewer people are making calls on the corporate network. Companies want to ensure that data delivery takes preference over trivial internet processes, like buying shoes at Zappos.


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Sunday, October 4, 2009

Dell's Foray Into IT Services

Dell to acquire Perot Systems for $3.9 billion

Story from CNN Money


NEW YORK (CNNMoney.com) -- Computer maker Dell will acquire information-technology company Perot Systems for $3.9 billion in cash, as the PC giant looks to expand beyond its core hardware business, the companies said Monday.

The move marks a strategic shift for Dell, which has stuck with its personal computer and server sales even as its rivals like Hewlett-Packard (HP) and IBM (IBM, Fortune 500) continue to diversify amid slumping hardware sales.

"We've seen this coming, but I'm surprised it took as long as it did," said Gartner analyst John Enck. "This path is a necessary ingredient to future success, which being a hardware-only provider would have limited."

Dell plans to buy Perot for $30 per share, a 67% premium to the IT firm's Friday closing price of $17.91. The deal is expected to be completed during Dell's fiscal fourth quarter ending in January.

Perot (PER) offers technology services in a range of sectors, from health care to government, as well as software and consulting. The unit will remain based in Plano, Texas.

Dell, based in Round Rock, Texas, said in its August earnings report that it expects stronger sales in the second half of the year, although average sale prices on PCs have been falling sharply. Quarterly sales were down 22% to $12.76 billion from $16.43 billion a year ago.
'Gun shy' Dell

Dell was likely "gun shy" about making any deals, despite the fact that its rivals have been diversifying, because of a late-1990s storage networking acquisition that "didn't go anywhere," Enck said. The company phased out that operation in 2001.

"They've been careful about buying a services company, but they've matured," Enck said. "That, coupled with environmental pressures, pushed them to buy because they realized they had to do something different in order to grow."
Perot offers technology services in a range of sectors, from health care to government, as well as software and consulting.

The Perot acquisition will "absolutely" broaden Dell's market share, Enck said, adding that the company will likely wait to digest this acquisition before it plans to make any more additions.

"Dell's rivals are always worried about Dell," Enck said. "Today's announcement will certainly give them pause to reflect."