IT/ Computer & Telecom Update

September, 2009
IT/COMPUTER

SPECIAL SECTION
Wall Street Journal Technology October 12

EDITORIAL FEATURES
• Computer – October editorial feature: Runtime Modeling
• Computerworld – September 14 editorial features: Technology Feature: Green
IT, Security Manager’s Journal, Career Watch; September 21 editorial
features: Security Manager’s Journal, Career Watch; September 28 editorial
features: Technology Feature: Mobile & Wireless, Security Manager’s Journal,
Career Watch; October 5 editorial features: Technology Feature: Storage,
Security Manager’s Journal, Career Watch
• Dr. Dobb’s Report – September 28 editorial feature: Application Lifecycle
Management
• Information Week –September 28 editorial feature: One-Stop Virtual
Management; October 5 editorial feature: Anatomy Of The Cloud: Platform As
A Service
• Network World – September 14 editorial feature: Lab Report: What’s Next in
Switching; September 21 editorial feature: Trend Watch: Open Source, DEMO
Fall; September 28 editorial feature: Special Focus: Security; October 5
editorial feature: Companies to Watch: Wireless/ Mobility; October 12
editorial feature: Special Focus: Data Center
• PC Magazine – November editorial feature: PC Labs Blockbuster

LAYOFFS
Analog Devices, Inc.
Norwood, MA
Cambridge, MA
Chipmaker Analog Devices Inc. of Norwood will shut down its Cambridge
manufacturing facility next month, at a cost of 120 jobs. Spokeswoman Maria
Tagliaferro said the job cuts were the result of a previously announced plan to
consolidate production at Analog's Wilmington plant. Analog Devices is a major
producer of specialized chips that convert sound or vibration into digital data and
that are found in a variety of motion-sensitive devices, such as automobile airbags
and the handheld controller for the popular Nintendo Wii videogame console. The
micro-electrical-mechanical sensors, or MEMS chips, use the motions of tiny silicon
"fingers" to detect sounds or movements. In automobile airbag systems, the chips
detect the shock of a collision and deploy the bag. Analog Devices has also
developed a MEMS chip for use as a microphone in low-cost electronic devices such
as cellphones.
Approximate Affected Workforce: 101-500 The Boston Globe
Emerson Electric Co.
St. Louis, MO
Columbus, NE
The Appleton Electric plant in Columbus will close by October 2010, and about 220
people will lose their jobs. Workers at the plant that makes electrical components,
like outlet and junction boxes, learned Friday that Appleton's St. Louis-based owner,
Emerson Electric Co., had decided to close the plant.
Approximate Affected Workforce: 101-500 Columbus Telegram

Samsung Semiconductor, Inc.

San Jose, CA
Austin, TX
Samsung Austin Semiconductor said Friday that it plans to close its older chip factory
in Austin and invest $500 million to convert it into an expansion of its more
advanced, 2-year-old plant. The company expects to cut 500 jobs - nearly one-third
of its local work force - with the closing of Fab 1 by late October. It expects to fill
150 to 200 new jobs created by the expansion next year. Spokesman Bill Cryer said
the move represents a substantial commitment by the parent company, Samsung
Electronics Co., the world's second-largest chipmaker, to keep advanced
semiconductor manufacturing in Austin well into the future. Cryer said the jobs that
will be cut are lower-skilled equipment operator positions. Almost all of the new jobs
will be higher-level, and higher-paid, technical and engineering positions.
Approximate Affected Workforce: 101-500 Austin American-Statesman

TRENDS
Down To Business: Outsourcing's Next Big Thing
'Outcome-based' contracts are all the rage, but there's often a big gap between what
CIOs say they want and what they're ready to do.

By Rob Preston, InformationWeek, August 29, 2009

Outsourcing providers are touting their ability to move beyond service-level

agreements to deliver services tied to customers' business results--higher sales,
lower costs, reduced errors. CIOs say they're wide open to forging such deeper,
"outcome-based" partnerships, where their vendors share in the risks and rewards of
major IT implementations and upgrades. But if outcome-based outsourcing is ever to
work as advertised, customers will have to put more skin in the game as well.

The IT outsourcing (especially offshoring) movement has been mostly about what
Forrester analyst Bill Martorelli calls "staff augmentation"--contracting for the
cheapest people to hack code, monitor data centers, man help desks, and do other
basic but essential IT work. Customers have grown accustomed to managing
outsourcing resources, not business outcomes, he notes.

But most companies are reaching the point where they can't squeeze any more
savings from body shops. And with IT budgets still under intense pressure, they're
exploring alternative outsourcing models to find new efficiency gains.
In a survey conducted by InformationWeek early last year, 20% of 430 IT pros
working with Indian outsourcers cited the "ability to tie project costs to business
goals" as a key benefit that would prompt them to work with an outsourcer again.
Providers are starting to step up. The enterprise group of India's Infosys says more
than half of its deals carry some element of outcome-based pricing. Wipro, Tata,
Accenture, IBM, and other providers are all scrambling to move up the stack to
higher-margin services as industry growth slows.

Two-thirds of the nearly $200 million revenue of Symphony Services, a fast-growing

provider of outsourced software development services, has an outcome basis, says
CEO Gordon Brooks. For example, under a contract to provide BMC Software with
product development, quality assurance, and customer support services for select
BMC products, Symphony will share in the revenue its services help generate, a
share that's "drastically reduced" if it doesn't deliver on time.

Outcome-based outsourcing isn't more widespread, Brooks says, because most

vendors and customers aren't prepared to manage them. All outcomes, whether
judged on business results, product quality, or timeliness, must be quantifiable. "You
must be a completely metrics-oriented business to make this work," he says. It took
Symphony two years to set up the processes to define and track those metrics, a
methodology it now offers to partners as a service. "Clients aren't pulling us into
this," Brooks insists. "We're pulling them into it."

Forrester's Martorelli says customers are pulling as well, though he agrees with
Brooks that there's often a big gap between what CIOs say they want and what
they're ready to do. Among the challenges he sees, besides the sheer complexity of
defining and measuring business outcomes: Outsourcing managers fear losing status
and control if they're no longer managing people and projects; and support from top
management may be lacking, especially if the benefits of structuring outsourcing
contracts around outcomes aren't obvious.

But as my colleague Bob Evans notes in his column on JetBlue's successful "all you
can fly" program, customers in every industry will increasingly reward suppliers that
give them more choices and allow them to "co-create value." Lowest-cost services
and status quo providers are a dime a dozen.

IT Jobs in U.S. Rise in July

U.S. gains 7,400 IT jobs following five months of losses

By Jon Brodkin, Network World, August 10, 2009

The IT jobs market turned around in July with the United States gaining 7,400 IT-
related jobs just one month after losing that many.

Department of Labor statistics show the U.S. economy on the whole lost 247,000
jobs in July, but IT-related employment categories showed a collective gain for the
month after posting five straight months of losses.
Since February, IT job numbers declined between 3,000 and 11,000 per month,
including losses of 7,600 jobs in June. The net gain of 7,400 IT jobs in July is "very
encouraging news [and] maybe the turning point we have all been anticipating,"
says David Foote, co-founder, CEO and chief research officer of Foote Partners, a
research group that tracks IT salary and skills.

There are five employment segments tracked by the Department of Labor related to
IT. Among these, computer systems design and related services gained 7,900 jobs in
July after seven months of losses totaling 17,500 jobs, Foote reports in a press
release. Another 900 jobs were gained in the management/technical consulting
services segment.

Slight job losses were reported in the other three IT segments, namely computer and
peripheral equipment manufacturing; communications equipment; and data
processing, hosting and related services.

It's not yet clear if the IT turnaround can be sustained throughout the rest of the
year. But with the U.S. economy shedding jobs at a slower pace and IT jobs
increasing, Foote expressed optimism.

"There has been a vibrancy in the job market throughout this recession driven by
employers search for IT workers with the right skills and experience for the job,"
Foote said. "If anything, I expect this to intensify in the next several months."

TELECOM

EDITORIAL FEATURES
• RCR Wireless News – September 21 editorial features: Wireless Networks;
Wireless Retailers; Femtocells; Mobile Enterprise – Hospitality; Mobile
Applications Development
• Electronic Design – October 8 editorial features: Automotive Electronics;
WiMax vs. LTE; Analog; Low-Power RF; October 22 editorial features: Salary
Survey; Boards & Modules; Networking; Test Probes
• Microwaves & RF – October issue editorial features: Communications;
ADCs/DACs; Test Fixtures & Probes; Matching Antennas to Applications
• Telecommunications – October editorial feature: Top 50 Global Service
Providers
• Telephony – October editorial feature: Subscriber Management; Next-
Generation Business Services; Targeting the Enterprise; Fixed-Mobile
Applications; Wireless Applications; November editorial feature: Advanced
IPTV Applications; Trends in SOA & Web Services; The Mobile OS; Whither
the Softswitch?; Next-Gen OSS/BSS Independent
• Wireless Design & Development – October editorial features: MIMO Based
Systems; Software Defined Radio; Power Devices; Mixers; Automotive
Electronics; LTE Technologies
• Wireless Week – October editorial features: Testing the Applications; Mobile
Messaging; M-Commerce
LAYOFFS
ADC Telecommunications, Inc.
Eden Prairie, MN
ADC Telecommunications Inc. said it will cut more jobs than expected in its latest
restructuring, including 55 jobs in Minnesota. The Eden Prairie-based maker of
telecom industry equipment now plans to cut its workforce by 350 to 400 people
worldwide, an expansion from the 100 to 130 figure previously announced in June.
The new total represents about 4 percent of ADC's total workforce. The earlier job
cuts announcement affected Europe, the Middle East and Africa. Now ADC is
expanding the cuts elsewhere, including 55 jobs in Minnesota.
Approximate Affected Workforce: 51-100 The Business Journal

Neustar, Inc.
Sterling, VA
Neustar Inc. is increasing the number of layoffs related to the reorganization of its
instant messaging division. The Sterling-based communications services company
said it would cut up to 120 more employees from its Next Generation Messaging
business segment in addition to 51 cuts made in the fourth quarter of 2008.
Approximate Affected Workforce: 101-500 Washington Business Journal

TRENDS
Updated: $4 Billion Available in Broadband Stimulus Funding
Electronic deadline extended one week

By Tracy Ford, RCR Wireless News, August 14, 2009

Applicants trying to score a piece of the $4 billion available in the first round of
broadband stimulus funds now face an Aug. 20 deadline for electronic filings. Paper
filings are still due Aug. 14 to request funding. The majority of the $7.2 billion
available to improve the nation’s access to broadband telecom services is set to be
given away either as loans or grants in this round of funding. Two more funding
rounds will follow. All of the $7.2 billion set aside to help bring broadband access to
more Americans must be awarded by Sept. 30, 2010.

The funds are part of a $787 billion stimulus package signed by President Obama to
create U.S. jobs and jumpstart the nation’s sluggish economy. The National
Telecommunications and Information Administration (NTIA), a division of the
Department of Commerce, will oversee $4.7 billion in funding, and the Rural Utilities
Services (RUS), part of the Department of Agriculture, will manage another $2.5
billion in grants and loans. Nearly all of the RUS funding is available this round.

In its July Notice of Funding Availability (NOFA), details of the stimulus requirements
were spelled out, including what constitutes an unserved or underserved area.
Broadband service is defined as 768 kilobits per second for downstream traffic and
200 kbps upstream. Applicants must be able to show the project can be self-
sustaining, and that the project could not be completed without the federal funding.
Projects must also meet the Federal Communications Commission’s Internet Policy
regulations, which in part state that the company may not favor some applications or
content over others. Each state is set to receive at least one grant.

"The Commerce Department’s Broadband Technology Opportunities Program will

reach the last frontiers of America’s information landscape, and the investments it
makes in inner-city neighborhoods and rural communities will spur innovation and
pave the way for private capital to follow," said Commerce Secretary Gary Locke.
"This first wave of funding will help create jobs, jumpstart additional investment and
provide model projects that can better inform our national broadband strategy."

In addition to money for building infrastructure, $200 million has been set aside for
public computer center capacity, including libraries and community colleges, $350
million to develop and maintain a broadband inventory map and $10 million for the
Inspector General to monitor the grant funds.