Author: Ben Debski

Hewlett-Packard sells software division to Micro Focus

Posted on by Ben Debski

Hewlett-Packard has unloaded a division of its software business to UK firm Micro Focus for $8.8bn as the Silicon Valley giant continues to streamline and downsize. The deal is a victory for Micro Focus, and will create one of the largest software companies in the UK by revenue The Guardian reported.

Hewlett-Packard Enterprise (HPE), a division of HP created last year to split the company’s hardware and software divisions, is parting ways with its non-core software assets as part of the sale. HP’s Chief Executive, Meg Whitman, is instead focussing the company on its strength in the computer and printer markets. HPE also recently sold its business services division to long-time competitor CSC for $8.5bn, and HP as a whole has slashed several thousand jobs over the last few years.

Hewlett-Packard Enterprise is parting ways with its non-core software assets as part of the sale to Micro Focus

As part of the terms of the terms of the deal, HPE shareholders will be awarded 50.1 percent of the new combined company. Micro Focus is paying $2.5bn in cash as part of the purchase.

Significantly the sale includes what is left of Autonomy, a bungled acquisition made by HP in 2011. HP made the purchase of the UK-based software house for $11bn, but was forced to write off billions from the vale of the company soon after. HP alleged this was due to deceptive accounting practices by Autonomy, intended to inflate the company’s value prior to the purchase. Autonomy’s management strongly denied the allegations, with a legal battle still ongoing.

Micro Focus is a software house that provides legacy support to large companies looking to connect old and new software systems – often a cheaper option than a full replacement. It has been on an acquisition spree for the last few years, purchasing Attachmate for $1.2bn in 2014 and Serena Software earlier this year for $540m. It has also enjoyed a surging share price and recently joined the ranks of the FTSE 100.

“The combination will give customers more choice as they seek to maximise the value of existing IT assets, leveraging their business logic and data along with next-generation technologies to innovate in new ways with the lowest possible risk”, said Kevin Loosemore, Executive Chairman of Micro Focus.

Apache Corp makes biggest energy find in a decade

Posted on by Ben Debski

On September 7, energy producer Apache Corporation announced it had discovered the equivalent of three billion barrels of oil in a previously overlooked area of West Texas. The newly-discovered oil field covers an area 20 times that of Manhattan, and promises to be one of the largest energy finds of the last decade.

The oil field, which Apache has named “Alpine High”, lies in the southern portion of the Delaware basin, in an area which had previously been thought to contain too much clay, making hydraulic fracturing near impossible. Apache, ignoring these doubts, secured the drilling rights to Alpine High two years ago for the low price of $1,300 an acre. Considering acres in other parts of Texas cost as much as $30,000, Apache’s investment in this area will prove extremely lucrative.

Since acquiring some 307,000 acres of Alpine High land, Apache has disproved many of the misconceptions about the area, showing the region to be both oil rich and easy to frack. Apache’s initial assessment of the region estimates the field contains 75 trillion cubic feet of gas, and three billion barrels of oil, with further exploration set to reveal an even greater yield.

Apache secured the drilling rights to Alpine High two years ago for the low price of $1,300 an acre

Apache’s plans to develop its acreage position will be launched immediately. It will be increasing its 2016 budget from $1.8bn to $2bn, and has drawn up plans for between 2,000 and 3,000 future drilling locations in the Woodford and Barnett regions of the basin.

While Alpine High promises to transform Apache, it may take years to unlock the area’s true potential due to a severe lack of infrastructure in the region. In an attempt to leapfrog this obstacle, the company will funnel 40 percent of this year’s Alpine High budget into processing equipment and pipeline production. Although it will soon be installing a temporary processing unit in the area, Apache does not expect to be running at full capacity until 2018.

“This is a world class resource”, Apache Chief Executive Jon Christmann said at a Barclays conference on Wednesday. “This really is a giant onion that is going to take us years and years to peel back and uncover. The industry dogma about this area, all the fundamental premises that most people had about it, were just wrong.”

While the oil industry has struggled in recent years to find new resources, Apache’s momentous discovery shows there are still plenty of oil sources to be exploited. Yet as shale prices remain low, oil producers may remain reluctant to take such calculated risks.

Mercedes-Benz electric cars to be sold in China

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Taking advantage of the Chinese Government’s generous subsidies offered to the new-energy vehicle (NEV) market, Daimler has announced plans to sell a range of Mercedes-Benz branded all-electric cars in the near future.

At an investor conference in Beijing, Daimler’s board of management member responsible for Greater China, Hubertus Troska, said the company is very confident NEVs will continue be an important factor in the Chinese market, according to Reuters.

“Mercedes-Benz is also going to play a role in China in NEVs”, Troska said in reference to the planned cars. While details of the vehicles, such as pricing and launch dates, were not discussed, Daimler plans to show a concept electric car at the Paris Motor Show on October 1.

In 2015, new energy vehicle annual sales in China surpassed 300,000

The move represents a new development in China’s rapidly growing NEV market. Customers in the country can take advantage of generous tax breaks and other forms of support designed to encourage both the manufacture and sale of NEVs. Electric and hybrid vehicles have been seen by local officials as one solution to China’s widespread pollution problem. Support being offered includes large subsidies from both central and local governments, free licence plate registration and free parking spaces. There has also been a surge in the construction of public charging stations.

The efforts have had a significant impact on the sale of electric cars in the country, with China becoming the world’s biggest market for NEV vehicles. In 2015, NEV annual sales surpassed 300,000.

Dominating these sales have been low-cost models by local manufacturers. Daimler is responding to a potential opening in the market for more upmarket and capable models on offer. It would be competing with the likes of Tesla, which is reportedly investigating the construction of a Chinese manufacturing plant.

Daimler’s advantage in this looming battle might be that it already sells one fully electric car in the country under the Smart brand, and another produced in partnership with local manufacturer BYD under the Denza brand. The Mercedes-Benz brand also already has a strong presence in the country, and currently sells a range of hybrid-powered cars.

General Electric invests $1.4bn in 3D printing

Posted on by Ben Debski

On September 6, General Electric announced that it had acquired two major European 3D printing firms for a total of $1.4bn. The US industry giant agreed to buy Sweden-based Arcam for approximately $680m, along with a successful offer of $762m for Germany’s SLM Solutions.

The acquisitions come as General Electric is looking to amp up its use of 3D printing in the manufacturing of jet engines and cars, following increasing pressure from manufacturers to invest in new digital technologies. As leaders in the rapidly advancing field of 3D printing, pioneering machine-makers Arcam and SLM will significantly support GE in its ambitious aim of printing more than 100,000 jet engine parts by 2020.

Arcam invented the electron beam melting machine, which allows for metal-based 3D printing, and has enjoyed particular success in the aerospace and orthopaedic implant industries.

Lübeck-based SLM Solutions also focuses on metal-based 3D printing, producing laser machines to make this feat possible. The German firm was the first 3D printing company to successfully process reactive metals such as aluminium, and caters primarily to the aerospace, energy and automotive industries.

“We chose these two companies for a reason”, said David Joyce, CEO of GE’s aviation division. “We love the technologies and leadership of Arcam and SML Solutions. They each bring two different, complementary additive technology modalities. Over time, we plan to extend the line of additive manufacturing equipment and products.”

Arcam and SLM will support GE in its ambitious aim of 3D-printing more than 100,000 jet engine parts by 2020

3D printing has been at the forefront of GE’s digital technology mission for several years, with the conglomerate investing approximately $1.5bn in the revolutionary technique between 2010 and 2016.

It is not difficult to appreciate the growing appeal of 3D printing for manufacturers. Given that 3D printed components require less welding and machining than traditionally-manufactured parts, they tend to be are lighter and more durable than their conventional equivalents. Furthermore, 3D parts are essentially ‘grown’ through printing, thus generating far less scrap metal. As 3D printing continues to remove traditional manufacturing restrictions, it may soon establish itself as the industry norm.

SpaceX explosion leaves Facebook satellite grounded

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Facebook founder Mark Zuckerberg has expressed his “deep disappointment” after his pioneering $200m satellite was destroyed in a catastrophic explosion at Cape Canaveral.

The incident occurred at around 9am on September 1, as the aerospace giant conducted a routine test of its Falcon 9 rocket, ahead of its intended launch. Just minutes into the test, smoke began to billow from the rocket, before the spacecraft suddenly exploded, sending shockwaves through the surrounding area. The force of the blast caused buildings several miles away to shake.

Elon Musk’s SpaceX attributed the explosion to “an anomaly”, confirming that, while the Falcon 9 rocket and its cargo were completely destroyed, nobody was injured in the blast.

The Facebook satellite was part of a pioneering project intended to deliver internet access to rural areas of sub-Saharan Africa. On August 31, Zuckerberg delivered a presentation in the Nigerian capital of Lagos, in which he outlined his plans to “beam down connectivity” on “remote rural areas” in the region. The move was intended to enable Facebook to establish a new network of users in rural areas of the continent, building on its already impressive number of 84 million sub-Saharan users.

In a post on his Facebook page, Zuckerberg commented: “As I’m here in Africa, I’m deeply disappointed to hear that SpaceX’s launch failure destroyed our satellite that would have provided internet connectivity to so many entrepreneurs and everyone else across the continent.”

However, the Facebook entrepreneur won’t be giving up on the region just yet. “We remain committed to our mission of connecting everyone, and we will keep working until everyone has the opportunities this satellite would have provided”, Zuckerberg promised.

The costly explosion will deliver a blow to Elon Musk’s ambitious spaceflight programme, which until now has been enjoying a run of remarkable successes. In December last year, SpaceX made history by successfully landing a Falcon 9 rocket upright on solid ground. Since this landmark moment, the California-based company has safely landed four more rockets, marking significant progress in its mission to revolutionise spaceflight through the use of reusable rockets.

While the spaceflight company’s reusable rockets have recently acquired their first customer, that launch may very well be pushed back as SpaceX’s rocket technology comes under inevitable scrutiny.

World’s first self-driving taxis hit Singapore

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On August 25, the world’s first self-driving taxis hit the roads in Singapore, courtesy of software company nuTonomy.

US taxicab giant Uber hit headlines earlier this month when it announced its plans to deploy a fleet of driverless cars in Pittsburgh by the end of August. The Silicon Valley company was beaten to the punch however by the lesser-known nuTonomy.

Initially, nuTonomy will limit its trial to a small, controlled environment: for now, the driverless cars will operate within a 2.5km square business district in Singapore called one-north, with only a small number of vehicles on offer. During the initial trial period, passengers in nuTonomy’s self-driving taxis will not be charged for their first-of-a-kind ride.

The creators behind the world’s first automated vehicles hope that, by 2018, their driverless ‘robo’ taxi service will be fully functional throughout the country.

Autonomous taxis could help to reduce the number of cars on Singapore’s roads from 900,000 to 300,000

“Quite frankly I think Uber is the Goliath and we need to show that our technology is working and getting to a level of maturity that is viable for the market place”, said Doug Parker, Chief Operating Officer of nuTonomy. “We are in a technology race here and I think there are going to be a handful of winners.”

While this race has traditionally been dominated by US tech giants, such as Uber and Google, nuTonomy’s groundbreaking success in the field may shift the spotlight onto Asian innovation.

During the initial trial period, nuTonomy’s fleet of taxis will have a safety driver behind the wheel and a researcher in the back to watch the car’s computers and collect data.

Once enough data has been collected from trial journeys, nuTonomy can then begin to increase its number of driverless cars on Singapore’s roads, in a move the company hopes will ease the heavy congestion in the city-state. According to Parker, autonomous taxis could help to reduce the number of cars on Singapore’s roads from 900,000 to 300,000.

“This really is a moment in history that’s going to change how cities are built, how we really look at our surroundings”, Parker predicted.

With Uber, Google, Baidu and Telsa all gearing up to launch their own driverless fleets across the globe, 2016 may prove to be a milestone year for motor innovation.

China launches satellite capable of sending unhackable communications

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A rocket carrying the world’s first quantum satellite blasted off from the Juiquan Satellite Launch Centre in China’s Gobi Desert in the early hours of August 16. The pioneering satellite, nicknamed Micius after an ancient Chinese philosopher, is part of an ambitious project by the nation to develop a ‘hack-proof’ long distance communications system.

China’s state run news agency Xinhua described the satellite’s two-year mission as “designed to establish hack-proof quantum communication by transmitting uncrackable keys from space to the ground”.

If successful, the 600kg satellite will achieve this aim by using entangled photons to send secure messages. Crucially, no transmission is involved in quantum communications, meaning that signals cannot be intercepted. Xinhua explained that “a quantum photon can be neither separated not duplicated”, making it theoretically impossible to hack any data encrypted using this method.

Once the nation’s satellite has entered its sun-synchronous orbit of earth, it will attempt to send unhackable messages between Bejing and the city of Urumqui in the country’s extreme west.

The 600kg satellite will achieve this aim by using entangled photons to send secure messages. Crucially, no transmission is involved in quantum communications

The newly-launched satellite is the latest milestone in China’s increasingly ambitious space programme, and sees the nation outpace its western rivals in the burgeoning field of quantum communications.

“The newly launched satellite marks a transition in China’s role – from a follower in classic information technology development to one of the leaders guiding future IT achievements”, commented Pan Jianwei, Chief Scientist of the quantum satellite project at the Chinese Academy of Sciences.

Aside from establishing China as a leader in quantum technology, the project also serves as a reminder of the nation’s growing concerns over cybersecurity. Efforts are ongoing in China to codify controversial internet restrictions in law, and the Great Firewall seems in no danger of collapsing anytime soon. This latest hack-proof communications project suggests that for China, cybersecurity is a more pressing issue than ever before.

SolarCity restructures to prepare for Tesla takeover

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SolarCity has kicked off a mass restructuring of its business ahead of the completion of its sale to Tesla. In a company filing, SolarCity said the cost of the process would be between $3m and $5m, most of which would consist of severance benefits to employees who are being let go. At the end of last year, SolarCity had 15,000 employees.

As a symbolic gesture, the company’s co-founders Lyndon Rive, CEO, and Peter Rive, CTO, announced that they would be taking a pay cut from $275,000 to $1. In a statement to USA Today, a spokesperson for SolarCity said the company fully expects to grow again in 2017, but must reduce costs in the short term to be in a position to do so. In its filing, SolarCity blamed lower guidance for solar panel installations than previously expected. Earlier in August, SolarCity said it planned to install between 900 and 1,000 MW worth of panels, down from initial expectations of between 1,000 and 1,100 MW.

Elon Musk, who is the owner of Tesla, Chairman of SolarCity, and cousin to Lyndon and Peter Rive, described the deal as a ‘no-brainer’ that would help fight climate change

The future of SolarCity seemed to have been sealed in August. Tesla announced it would acquire the company in June, with the details being finalised this month in an agreement worth $2.6bn. Elon Musk, who is the owner of Tesla, Chairman of SolarCity, and cousin to Lyndon and Peter Rive, described the deal as a ‘no-brainer’ that would help fight climate change.

It’s not the only case of a symbolic CEO pay cut in the solar energy sector in recent weeks, as CNBC reported Tom Werner, the CEO of rival solar panel maker Sun Power, recently announced he would be taking a $1 salary to make amends for a significantly lower profit guidance for 2016, and to boost investor confidence.

In a separate filing, SolarCity also announced it would be issuing $124m in bonds, according to Reuters. The bonds are carrying a higher interest rate than any previous offering from SolarCity at 6.5 percent.

Lenovo demonstrates there’s still growth in the PC market

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Lenovo has bucked the trend in what remains a challenging personal computer market by posting solid first quarter earnings and beating market expectations. The Chinese firm remains the world’s number one player in the PC market, and, in spite of a drop-off in all-round sales and currency headwinds, Lenovo has delivered “strong profits”.

Its share of the PC market rose by over 25 percent this last quarter alone, having performed slightly better than expected in mature markets.

“Although the macro-economy and our industries remain challenging, causing a decline in our revenue, we significantly improved our profit year-on-year through innovative products and strong execution”, said Yuanqing Yang, Chairman and CEO of Lenovo, in a statement. “Going forward, in PCs we will focus on high growth segments and leverage industry consolidation to resume growth.”

The Mobile Business Group, which includes Motorola and Lenovo-branded mobile phones, performed admirably this latest quarter

The Mobile Business Group, which includes Motorola and Lenovo-branded mobile phones, performed admirably this latest quarter, and while quarterly sales were down six percent year-over-year, the results were flat when adjusted for currency fluctuations. “In smartphones, we will leverage innovative, differentiated products and continue to shift to higher price bands to drive growth and turn around this business”, continued Yang. “In data centres, we will continue to expand in hyperconverged technology, and improve profitability in the hyperscale business.”

Lenovo bought Motorola in 2014, with a view to reducing its exposure to a shrinking PC market. However, the latest figures indicate that its mobile division is unlikely to turn a profit before the latter stages of 2017.

As much as the group’s mobile division was bought to stave off a decline in the PC market, Lenovo faces the prospect of further losses should it fail to formulate a more sustainable plan. Its focus on premium models is a start of sorts, though its bet on Motorola, for now at least, appears ill timed, with growth in the smartphone market beginning to tail off.

Ford enters the self-driving car game by targeting ride sharing

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Ford has made its vision clear for the future of cars, announcing an ambitious plan to have a mass-produced self-driving car on the road by 2021.

Speaking at an event in Palo Alto, California, Ford’s President Mark Fields announced the company’s intention to develop an autonomous vehicle, along with how it plans to get there. Ford will be doubling the investment in its Palo Alto research centre and plans to invest in automotive technology companies.

“Vehicle autonomy could have as big an impact on society as the Ford mass assembly line had over 100 years ago”, Fields said.

The target market for the self-driving car will initially be commercial ride booking companies such as Uber and Lyft. Unlike General Motors, which announced in January that it would be investing $500m in Lyft, Ford is yet to back a specific player in the ride-sharing market. In an interview with the BBC, Fields said he wants Ford to not just to be an auto company, but an auto and mobility company.

The target market for the self-driving car will initially be commercial ride booking companies such as Uber and Lyft

Ford stated it expects the rollout of self-driving cars will be in big cities initially, and hybrid engines rather than fully electric or combustion engines will most likely be used. The cars will have no pedals or steering wheels. The company hopes to have 30 self-driving Ford Fusion Hybrid prototypes on the road by the end of this year, with 90 in 2017.

Tech companies such as Apple and Google are also working on self-driving car technology. Rather than engage in a partnership or a similar arrangement, Ford’s announcement places it in direct competition with these firms. It’s betting Ford’s century of dominance in the car industry is enough to win customer confidence over comparatively young competitors.

The race is well and truly on in the autonomous vehicle field, with the first mass-produced car a goal for several manufacturers. BMW recently formed a joint partnership with Intel and Mobileye to create a driverless car, and many luxury models already feature some degree of autonomy.

However, Ford may have an uphill battle to win consumer trust. A Tesla driver was killed this year in an accident that occurred while the car was in autopilot mode, worrying many about the safety of self-driving systems.

Global renewable energy share rises

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According to data compiled for the FT by Bloomberg New Energy Finance, the share of electricity in the G20 nations generated by solar and wind power has spiked 70 percent over the last five years. The surge has been led mostly by G7 members, the likes of whom last year agreed to phase out the use of fossil fuels by the end of the century and pursue low carbon alternatives.

All in all, G20 countries derived eight percent of their electricity from solar farms, wind farms and other green power sources – not including hydropower – in 2015, as opposed to a mere 4.6 percent back in 2010. What’s more, seven of the 20 generated more than 10 percent of their electricity form these same sources, compared to just three in 2010.

Germany is far ahead of the rest, with solar and wind making up a 36 percent share of its national energy mix

Energy ministers from the G20 counties laid out their commitments to renewable energy at the inaugural G20 Energy Ministers Meeting in Istanbul last year, and the latest data is proof they are making bold steps to realise these ambitions. Director General of the International Renewable Energy Agency Adnan Amin last year stressed that G20 countries held 75 percent of total global deployment potential and 70 percent of total global investment potential for renewable energy between now and 2030. “With this tremendous market opportunity before them, concerted and coordinated action undertaken by G20 countries to advance renewable energy can really move the needle on global deployment as we transition to a clean energy future.”

Germany is far ahead of the rest, with solar and wind making up a 36 percent share of its national energy mix. The UK, Italy and France, meanwhile, all generated more than 19 percent from these same sources, while Australia and Brazil generated 11 percent and 13 percent respectively.

China remains the world’s number one renewables investor, representing a third of the whole last year, yet fossil fuels make up the overwhelming majority if its energy mix. The same can be said for Saudi Arabia and Russia, where the share of renewables is so slight as to be almost non-existent.

As the pressure to invest in low-carbon alternatives grows fiercer and the cost of renewables continues to climb down, its share of the global energy mix will no doubt continue to rise.

Bill Maris, CEO and founder of Google Ventures, quits Alphabet

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Bill Maris, CEO and founder of Alphabet’s venture capital division Google Ventures (GV), has announced he is leaving the company at the end of the week, Recode reported. David Krane, a managing partner of the business and an early corporate communications manager at Google, will be replacing him.

GV was founded in 2009 by Maris and established itself as one of the biggest financial presences in Silicon Valley, placing early bets on winning start-ups including Uber, Nest and Slack. Another business it backed was Jet, which was recently sold to Walmart for $3bn in the biggest e-commerce acquisition in US history.

More recent investments from GV haven’t been as successful. A major misstep was Secret, a social network designed for people to share information anonymously. After several out-of-control capital raising rounds, in which GV was an early investor, Secret failed to meet expectations. GV has more recently been working with life sciences and biotech start-ups, such as oncology data analyst Flatiron Health.

More recent investments from GV haven’t been as successful. A major misstep was Secret, a social network designed for people to share information anonymously

Another challenge for GV was internal competition within Alphabet. Google Capital was launched in 2013 as another investment arm of Alphabet, focusing on later stage start-ups. While ostensibly working in different fields, many saw the two companies as being in competition with each other.

In an interview with Recode, Maris said he was leaving GV in good shape, and would be looking to spend more time with his family. He also said he is currently on the lookout for his next project.

“Who knows about the creative process”, said Maris. “You should definitively expect to see something from me. I’m not just going to go on the beach this week.” He also stated his decision to leave the company had nothing to do any changes at Alphabet.

Maris is the third senior departure from Alphabet since June. CTO and former director of Alphabet’s self-driving car project Chris Urmson recently left, along with CEO of Nest, Tony Fadell.