Windows 7 trial run begins

Microsoft Corp released a near-final version of the Windows 7 operating system to a large group of technology-savvy testers on Thursday that adds a few new features, including a way to run Windows XP applications.

The Windows 7 `release candidate' will be available for anyone to download and try out on May 5. The release candidate is typically the version used by Microsoft's corporate customers to test how the new system will work for them. Software developers, hardware makers and other partners also base their next-generation products on this version because they trust that it's stable and close to finished.

Microsoft published the Vista release candidate about five months before the final version went on sale to consumers. If Windows 7 were to follow the same trajectory, it could be available by the start of October. Officially, Microsoft expects to start selling Windows 7 by the end of January 2010, but has said this week that it is possible it could launch in time for the holiday shopping season.

The software maker is counting on Windows 7 to win over businesses that put off upgrading to Vista, which got off to a rough start because it didn't work well with many existing programs and devices.

And Microsoft drew criticism from consumers when many computers advertised beforehand as ``Vista capable'' were actually too weak to run Vista's highly touted new interface and other features. People who wanted to upgrade Windows XP computers found their graphics cards and other components weren't up to the task.

The new system is already set up for a smoother debut because it shares much of Vista's underlying technology, which means hardware and software makers have had more than two years to catch up to a more demanding set of requirements. And Microsoft has pushed the notion that the high-end version of Windows 7 will run on many more computers than Vista, including tiny, low-powered laptops called netbooks. Today, Microsoft sells Windows XP, a much less profitable version of its operating system, to PC makers like Dell Inc. and Hewlett-Packard to install on Netbooks.

Microsoft revealed that the basic requirements for running a high-end version of Windows 7 aren't much different from those needed to run the bulkier versions of Vista. However, critics said the Vista requirements for memory and other components should have been set higher, and Microsoft says Windows 7 is better at managing memory and not bogging down less-powerful machines.

Microsoft unveiled a few new features in the release candidate that didn't exist in the January beta, including something called Windows XP Mode. The feature, available for the release candidate as a separate download, will let people run many XP-era programs from a Windows 7 computer.

The release candidate also adds a way for people to access music and other media files stored on their home PC over the Internet from other Windows 7 machines.

Shares of Microsoft added a penny to close at $20.26.

Get apps from a Cloud, save money!

As small and medium businesses in India struggle to stay afloat during the global economic slowdown, they are opting for relatively cheaper technology options like cloud computing. In cloud computing, users share software over a wide network of computers.

Sumeet Sabharwal, senior vice-president of outsourcing and IT hosting firm Navisite Inc, says cloud computing is a viable Internet model for small and medium businesses across India, especially in the technology hubs in and around the capital and in Bangalore.

"The demand for having a reliable hosted infrastructure has increased over the years in India as businesses are shifting to the Internet from offline facilities. At the same time, users do not want to burden themselves with the cumbersome processes of installations and hardware specifics. They look for solutions that are flexible, to scale and automated from the deployment standpoint, to maximise profit and output," Sabharwal said.

He said cloud computing was "still in a nascent stage in India and users need to be educated. Demand will grow as medium and small business owners realise its financial upside. I think it is the technology of the future for a country like India".

"Cloud computing," explained Sabharwal, a Cornell University alumnus, "is a computer paradigm in which tasks are assigned to a combination of connections. It operates on three basic principles - computer, bandwidth and storage.

"It eliminates the manual tasks of shipping the software to the user and allows users direct access to the software from the net. This network of servers and connections is collectively known as 'the cloud', which is a kind of a platform."

Computing at the scale of the cloud, said Sabharwal, allowed users to access supercomputer-level power. "Using a thin client or other access points like an iPhone, BlackBerry or laptop, users can reach into the cloud for resources they need. For this reason, cloud computing has also been described as on-demand computing."

Cloud computing, where the "intelligent network acts as the supercomputer", is a way to increase network capacity or add capabilities without investing in new infrastructure, new personnel or licensing new software.

"It is a pay-per-use service and cuts business cost by at least 40 percent depending on how the businesses leverage it. At the same time, one can scale up or scale down on the network itself, going by the number of visits to a business site and its growth," Sabharwal said.

"Clouds are of two types - the public cloud, where infrastructure can be shared horizontally depending on areas and geographies of growth - and large private clouds dedicated to big companies, mostly the independent software vendors, retail firms and technology providers.

"Cloud Computing," said Sabharwal, "is also the most effective technology for hosted e-mails for medium-sized corporate firms."

10 challenges before Tech Mahindra

After over three months of suspense and anxiety, Satyam Computer Services has finally found its new knight in shining armour, Tech Mahindra (TechMa).

The company which suffered a deadly blow on January 7 2009, when its owner confessed to a Rs 7000-crore hole in its balance sheets, can be finally said to be on the road to recovery.

Tech Mahindra's acquisition of Satyam has come as a relief to both the market as well as most Satyam employees. Though worst may be over for Satyam, the deal is not going to be an easy ride for the Mahindra group company.

Embracing Satyam into its fold is not going to be an easy task. Here's looking into the 10 challenges that Satyam-Tech Mahindra deal present for the new management.

Challenge 1: Lack of experience
The factors that could make this integration a complex task are Tech Mahindra’s lack of experience in most of Satyam’s business verticals and issues relating to its own core business.

“Tech Mahindra certainly gets breadth in skills post merger (with Satyam). But what it lacks is depth in terms of client base and leadership in the new verticals that it would get access to after the merger,” said Edelweiss Securities IT analyst Viju George.

Challenge 2: Different business profiles
“The business profiles of both the companies are totally different. While Tech Mahindra earns majority of its revenue from the European market by providing telecom solutions, Satyam is far more diverse in verticals as well as geographies,” said India Infoline IT analyst Rajiv Mehta.

Also according to analysts, though Tech Mahindra has British Telecom's (BT) backing and a strong presence in the US, it is not very well known in markets such as Australia, where it will have to market itself.

Challenge 3: Marrying the work cultures
Analysts also said that integrating a large pool of some 43,000 Satyam employees across verticals that are somewhat unfamiliar to Tech Mahindra would be anything but easy.

Tech Mahindra faces challenge of marrying the work cultures of the two organisations and other human resource-related issues. Though the two companies began operations in the same year, they are said to be characteristically different.

Winning back employees' trust too will be a big challenge. Tech Mahindra will have to stop the attrition both at client and employee levels.


Challenge 4: Facing recession pangs
Tech Mahindra also faces challenges from its own business. The company, which earns three out of every five rupees by serving the UK-based BT Group, is suffering from the slowdown in global telecom markets.

“The single-biggest client, BT, is not doing well and this is going to put a lot of pressure on Tech Mahindra,” said SBICAP Securities research head Anil Advani.
According to an internal communication meant for its employees, the company could not clinch a single deal in March. Tech Mahindra is also believed to have let go about 250 employees in the past three months citing reasons of non-performance. “It had earlier set up two centres for every project as part of its disaster recovery plan. Now, due to cost-cutting, one location is being shelved for each project and employees asked to either shift to other projects or leave,” said another company official. The company had 25,429 employees as of December’ 08.

Challenge 5: Convincing existing customers
One of the biggest challenges for the new management will be to regain customer confidence. Tech Mahindra will have to convince the customers to stay on, and attempt to win back over $300 million worth of outsourcing contracts through competitive pricing.

Two large customer exits reported from Satyam are Telstra ($32 million/year) and State Farm Insurance.

Challenge 6: Legal liabilities
Satyam is facing half-a-dozen Class Action suits filed by shareholders in the US after its disgraced founder B Ramalinga Raju admitted to fudging the firm’s books. It is also fighting a legal battle with UK-based mobile payments services provider Upaid.









Challenge 7: Build new leadership
Another challenge for Tech Mahindra is the new leadership team and the role of top 100 Satyamites who would be retained. The retention of 100 key associates was one of the pre-requisites that Tech Mahindra had to agree to. The top management of Satyam is understood to have shortlisted key leaders.

Challenge 8: Cleaning the balancesheet
The Tech Mahindra management would have a challenging task of cleaning up the balance sheet of the scam-tainted company. The company is likely to be poorer than publicly stated earlier. The big question is by how much. Tech Mahindra has estimated Satyam's revenue to fall to $1.3 billion (Rs 6500 crore).

KPMG and Deloitte are doing the forensic re-statement of accounts, a process that is expected to be a lengthy one. It is expected to take at least six months. The new owner will have to cooperate with over half-a-dozen agencies and regulators probing the scam.

Challenge 9: Liquidity
The deal would pose financial and operational challenges for Tech Mahindra. Analysts say that the company may have to immediately invest Rs 1,000 crore in Satyam for operating expenses.

At the end of the December quarter, Tech Mahindra had $110 million in cash and cash equivalents. Assuming that cash kitty has expanded by another $30-35 million in the March quarter, the acquirer will still have to borrow or raise capital to fund the deal.

Challenge 10: Conflict of interest
Satyam's clients in areas such as manufacturing, auto and engineering services may be concerned. “There may be a conflict of interest among Satyam’s auto clients, considering that the company will now be owned by an auto major, M&M. The same will apply to telecom clients, as BT has a stake in Tech Mahindra and is one of its biggest clients. So, clients will do their own cross-questioning and due diligence on the deal,” said Diptarup Chakraborti, Gartner India’s principal research analyst.

“The next 60-90 days will be crucial to demonstrate a plan for existing Satyam customers. Satyam provides niche work in areas such as auto and engineering services, so clients will be concerned about the long-term plan in that space,” said Sudin Apte, a senior analyst with Forrester Research.