Kindle Fire HDX tablets show big push for business users

Amazon Wednesday unveiled two Kindle Fire HDX tablets with features that indicate a clear attempt to attract business users to the platform.

The 7-in. HDX is slated to begin shipping on Oct. 18 for $229 ($329 for a 4G version) for either AT&T or Verizon Wireless. An 8.9-in. version will cost $379 but won't ship until Nov. 7, with a 4G variant priced at $479.

The biggest enterprise-centric features are contained in what Amazon calls its updated Fire OS 3.0 "Mojito" that's built on Android. An over-the-air 3.1 update of Mojito is promised for mid-November.

The business-class features include hardware and software encryption, secure Wi-Fi for access to corporate apps and SharePoint, a native VPN client and single sign-on capabilities, Amazon said.

Android enterprise and productivity apps such as GoToMeeting, Evernote, Cisco AnyConnect and Documents To Go, can be found at the Amazon AppStore.

Kindle-specific device management APIs (Application Programming Interfaces) are included so that IT workers can manage the HDX devices through Mobile Device Management software vendors like AirWatch, Citrix, Fiberlink, and Google Technology, Amazon said.

Amazon created a "Kindle Fire for Work" Web page that describes some of the new features, such as a "robust corporate e-mail experience" using Exchange email with ActiveSync "that keeps you connected to your company's Exchange server while also meeting IT's security policies."

The new hardware appears to be designed with enterprise users -- and consumers -- in mind.

For instance, there is a unique "Mayday" button that when pressed will bring live, free tech support within 15 seconds. Some early reviewers have already questioned the privacy of the Mayday function.

Amazon said the battery life offers all day use -- up to 11 hours of mixed use at a time. The 8.9-in. model is a light 13.2 ounces, or 34% lighter than the current model and the lightest large-screen tablet on the market. By comparison, the device is nearly 10 ounces lighter than the 9.7-in. Apple iPad.

Brighter, better definition displays on the devices include a 1920 x 1200 one with 323 pixels per inch in the smaller version and 2560 x 1600, or 339 PPI in the larger version. Amazon boasted that both models will have three times faster processing power than the last generation of Kindles, with 2.2 GHz quad-core Snapdragon 800 processors.

For some analysts and reviewers, it comes as a mild surprise that Amazon is pitching its tablets to workers looking to use the device at work, especially since the smaller tablets seem more suited for consuming than for productivity. Amazon seems to have anticipated such concerns, by citing a statement from ROI Training, a corporate user of previous Kindle Fire tablets, proclaiming that its use of the device has made it easier for its employees to stay productive at both work and home.

Kindle is already the second most popular tablet at work in the U.S., said Amazon's Raghu Murthi, vice president of enterprise and education, in a statement. "As employees increasingly bring their own devices to work, the new Kindle Fire tablets can easily be integrated into the workplace with the new enterprise features." Murthi said.

Microsoft this week unveiled the Surface 2 and Surface Pro 2 tablets, both with 10.6-in. displays that allow them to approach laptop capabilities when used with covers that double as keyboards. Microsoft adapted the tablet kickstand of both devices to work in two positions to enable them to be used more easily as laptops.

Analysts believe larger displays are considered better for maximum productivity, while 7-in. to 8-in. displays are generally seen as consumption devices, for reading books and watching videos. In its new tablets, Amazon stuck with the smaller form-factor and at the same time chose to market them as productivity devices for workers and consumers, while noting that many customers will use the machines for both work and personal use.

It remains to be seen how Amazon's new enterprise-ready features will resonate.

IDC and other analyst firms have noted a strong trend toward sales of smaller tablets in the 7-in. to 8-in. size to business users, and even the iPad mini, at 7.9-in. is designed to capitalize on that trend. Amazon benefits from a huge online store of products and services that will resonate with all kinds of tablet customers, analysts have said.

"Amazon hasn't had much traction with Fire tablets in the enterprise, but they're clearly targeting that group more [with HDX]," said IDC anayst Tom Mainelli. "It remains to be seen if they'll have any luck there, but they are putting the right features into the products to make that happen."

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BlackBerry warns of disastrous Q2

BlackBerry warns of disastrous Q2
Slashing 4,500 jobs, reporting $1B loss, stock price plunges 20% in late afternoon trading

BlackBerry shares plunged 20% late Friday afternoon as the company announced plans to fire 40% of its employees and eventually cut expenditures in half over the next nine months. The actions were in response to the company’s warning of a collapse in second fiscal quarter earnings.

The company said quarterly revenues were expected to be about $1.6 billion. Yet Wall Street had been expecting over $3 billion. It also said that the quarter’s GAAP net operating loss would nearly $1 billion.

Nasdaq halted trading on the BBRY shares about 35 minutes before the preliminary figures were officially announced. When trading resumed, shares plunged 20% to $8.72.

11 not entirely useless factoids about BlackBerry maker RIM

A statement by CEO Thorsten Heins suggested BlackBerry is all but abandoning the consumer smartphone market.

“Going forward, we plan to refocus our offering on our end-to-end solution of hardware, software and services for enterprises and the productive, professional end user,” Heins said. “This puts us squarely on target with the customers that helped build BlackBerry into the leading brand today for enterprise security, manageability and reliability.”

During the quarter, about 5.9 million BlackBerry smartphones were sold through to end customers. BlackBerry didn’t break out how many were based on the new BlackBerry 10 operating system and how many were based on the prior OS platform.

The marketplace failure of its BlackBerry Z10 touch smartphone was underlined in a massive charge against inventory. BlackBerry said it will “report a primarily non-cash, pre-tax charge against inventory and supply commitments in the second quarter of approximately $930 million to $960 million, which is primarily attributable to BlackBerry Z10 devices.”

BlackBerry also said it’s changing its smartphone lineup to focus on “enterprise and prosumer-centric targeted devices, including two high-end devices and two entry-level devices in all-touch and QWERTY models.” The Z10 will target “a broader, entry-level audience.”

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China Struggling to Compete in the IT Outsourcing Arena

The Chinese government has made no secret of the fact that it wants to compete with IT and business process outsourcing powerhouse India on the global outsourcing stage. In 2006, the country's Ministry of Commerce unveiled it's "1,000-100-10 Project" with aimed to double China's services export by establishing 10 outsourcing hubs, attracting 100 multinationals to its shores, and developing 1,000 local vendors capable of meeting the demands of international customers.

So how's that been going? Very slowly, according to Arie Lewin, director of the Center for International Business Education and Research at Duke University's Fuqua School of Business.

The country's IT and business process services industry, which Lewin conservatively estimates is worth about $50 billion today, has seen little growth in recent years. "China has a national goal to build up this industry as new lever of economic development and this idea that they could leapfrog India," says Lewin. "But progress has been very slow."

Chalk part of it up to bad timing. "They're trying to get into an industry whose growth rate has leveled off, and it's tough to take market share away from anybody," says Lewin.

China's Services Providers Need Better Talent and Security to Compete

More fundamentally, providers in China face two other impediments: talent problems and a terrible reputation for intellectual property protection and security. Few Chinese professionals see business services as a viable career path. Providers who want to attract the best and brightest often pay a 20 percent premium on salaries, says Lewin, and there's already little labor arbitrage to be had in cities like Shanghai.

Lack of training in project management and process leaves many companies stuck doing low level work. And lack of English proficiency excludes most players from the lucrative outbound call center business.

Then there's the IP problem. Rightly or wrongly, Chinese service providers suffer "the negative consequences of organizations in China that are bombarding Western corporate Web sites and violating intellectual property," says Lewin. "Companies are not giving providers work because of this insecurity." One U.S.-based provider is spending $3 million a year to maintain its firewalls, Lewin says. "If that's what has to happen, it's unreasonable."

How Chinese Service Providers View Their Position

To find out more about how providers view the situation, Lewin along with Shanghai Jiao Tong University professor Liu Yi recently surveyed 250 providers in China, 71 percent of whom are headquartered there. What they found was a universe of undersized, young companies struggling to compete for international business.

Small providers (fewer than 500 employees) account for 87 percent of the market, according to the survey; and 79 percent of the providers had been in business for less than ten years. Just 22 percent of respondents said they had implemented Six Sigma principles, while 60 percent reported implementation of some ISO standards.

When asked about the top new services they planned to offer, 24 percent indicated software development with 12 percent answering IT infrastructure support and product design. The majority of providers also said they expected new work to more likely come from China and Asia than Europe or the U.S.

"One of the most telling themes was that, in the future, they want to focus more on the domestic industry than international clients. They realize they're not at the level of professionalism that makes them competitive for international business," Lewin says. "They're not ready to leapfrog India." That's a downshift from the more aspirational attitudes Lewin says he had seen in recent years.

Since 2006, the Chinese government has altered its approach to bolstering its services industry, identifying more than 20 cities that might be able to develop a good model that could be used throughout the country. "The approach is very Chinese," Lewin says.

But Lewin has some other suggestions for the government, such as creating incentives for ISO standards compliance. That would send a clear message about the importance of process to the business. "China doesn't have a process orientation the way India or Germany or Japan does," Lewin says. "In China, if they find a shortcut they will take it, and they will not document it. I hear it all the time."

The U.S. mid-market could also be a growth opportunity for Chinese companies, but trying to sell internationally is prohibitively expensive for small players. The Chinese government "could create representative offices in the U.S. and reduce the marketing costs for them," says Lewin.

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Buggy Microsoft update hamstrings Outlook 2013

Folder pane goes blank after stability and performance update Tuesday; Microsoft pulls update from Windows Update and WSUS

An Office 2013 non-security update, part of yesterday's massive Patch Tuesday, blanks the folder pane in Outlook 2013, the suite's email client, drawing complaints from customers on Microsoft's support forum.

The update, identified as KB2817630, was meant to quash a several stability and performance bugs in a number of the suite's components, including Excel, SharePoint Server and Lync; fix a problem that caused Office to freeze when a document was opened in the "Protected Mode" sandbox; and more.

Instead, it emptied Outlook 2013's folder pane.

"I can't view my list of e-mail accounts, folders, favorites, etc.," said Trevor Sullivan in a message Tuesday that kicked off a long support thread.

Scores of others quickly chimed in to say the same had happened to them after applying the update on PCs running Windows 7 or Windows 8.

"Same problem on multiple fully-updated Windows 7 Enterprise Edition, Windows 8 Enterprise Edition and Windows 8.1 Enterprise Edition workstations ... all with Office 2013 32-bit," said "MiToZ" on the same thread.

Within minutes of Sullivan's post, users reported that they'd gotten the folder pane view back after uninstalling KB2817630.

Microsoft was not available for comment late Tuesday, and it has not posted any information about the glitch on its various Office-related blogs. Nor have company representatives weighed in on the support discussion thread, as they sometimes do.

However, users said that the original update had been pulled from both Windows Update and Windows Server Update Services (WSUS). The former is the patch service aimed at consumers and very small businesses, while the latter is the Microsoft-provided patch delivery and management service used by most businesses. Others reported that they'd contacted their Premier Support representatives -- a support plan available only to Microsoft's largest customers -- but had not been told when a fix would be available.

The gaffe is the latest in a series of embarrassments for Microsoft stemming from flawed updates. In August, the Redmond, Wash. company yanked an Exchange security update, saying it had not properly tested the patches. In April, Microsoft urged Windows 7 users to uninstall an update that crippled PCs with the notorious "Blue Screen of Death"; it re-released the update two weeks later.

A few users dealing with the empty folder pane bemoaned the trend.

"Yeah, another Microsoft Update Tuesday Blunder," said "Triple Helix" on the long thread.

"Someone on [Microsoft's] update testing team needs to get fired," added "The Computer Butler."

The flawed Office 2013 stability and performance update was issued yesterday alongside a 13-bulletin, 47-patch collection of security fixes that closed vulnerabilities in Windows, Internet Explorer, SharePoint, Word, Excel and Outlook.

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Facebook legal skirmish highlights user privacy risks

Facebook deciding to clarify its privacy policy under legal pressure demonstrates the unavoidable risks associated with sharing personal information on a social network.

On Thursday, Facebook notified users of its plans to change its data use policies in settling a class-action lawsuit. The plaintiffs in the complaint argued Facebook had violated their right to control the use of their names and profile pictures by using them to promote advertisers' products and services.

On Monday, a federal judge approved a $20 million fund set up by Facebook to settle the suit. In addition, Facebook was ordered to change its privacy policies to give users a better understanding of, and control over, how their information is used with advertisers.

The revised policies would state that in joining the site, the user is agreeing to "permit a business or other entity to pay us to display your name and/or profile picture with your comment or information, without any compensation to you."

The legal skirmish raises the question whether people and businesses can expect Facebook, or any other for-profit social network, to place their privacy above increasing revenue? The answer is no.

"They're going to continue to push the limits on what people allow them to do because that benefits them," IDC analyst Scott Strawn told CSOonline. "And they'll continue to do that until something stops them."

That approach to user privacy, which can lead to infringements, is why Internet companies such as Facebook and Google can provide free services, they say. The strategy also pays for future innovation.

In agreeing to accept those services, people are accepting the risk that how their information is used will change as companies look for more profits. "The technology changes and the use of the data may change, [which] may be problematic in some circumstances at some point in the future," Strawn said. "It's hard to quantify and fully understand what those risks might be."

If users believe a company has crossed the privacy line, then the courts are often the only way to rein in the use of personal data.

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