The next best thing to having a monopoly is owning the standard, and if not the de facto standard, well then, by gum, a de iure standard, and there’s not a red-bloodied cloud player out there who wouldn’t thrown his grandmother under an oncoming train to be that standard.

Amazon’s grandmother looks safe for the moment, but Red Hat’s grandmother better start worrying because Red Hat’s sent its Apache Deltacloud API specification down to the Distributed Management Task Force (DMTF) to be prayed over by the DSMTF’s Cloud Management Work Group and resurrected as the arbiter of IaaS cloud portability and interoperability – and we all know how important that’s supposed to be even if early cloud users ignored history largely because, if they waited, they’d never have gotten cloud-borne.

Anyway, the Apache Deltacloud project is an open source implementation of a RESTful Web Service API abstracting common proprietary IaaS cloud management APIs like Amazon’s and Rackspace’s.

It was started by Red Hat last September and moved to the cover of the Apache Incubator earlier this year where – although it’s kinda dependent on Red Hat’s own Cloud Engine widgetry – it’s reportedly gotten “various stages of support and participation” from Cisco, Dell, Cisco, Dell, Gogrid, Goldman Sachs, HP, IBM, Ingres, Intel, Nimsoft, Opsource and Symantec.

Red Hat claims the move make Deltacloud “the only major cloud framework that isn’t tied in some way to a single company’s proprietary code, APIs or other intellectual property.” That doesn’t mean that it isn’t to Red Hat’s advantage, or that Red Hat’s code won’t run best on the thing. Heck, portability in itself is an evangelical advantage.

It plays to the futuristic vision of people moving on-demand – presumably painlessly and regardless of infrastructure or, God forbid, dependencies – between private and public clouds with an SLA, which is what the Hatter says the enterprise and the government want so long as everything can be managed from one place. Hope they’re not holding their breath

Deltacloud is key to Red Hat’s Cloud Foundations, announced in June, which is Red Hat’s everything-we-own-tossed-into-it cloud stack

Red Hat is striking early, probably prematurely, on the standards front ahead of other open source cloud projects like the newfangled OpenStack effort organized recently by Rackspace and still in development.

So far what makes it different, Red Hat says, is that it’s conceived as a Web Service and that means:

- The API can either be offered directly by the cloud provider or by individual users running their own server;
- Client libraries can be written in any number of computer languages, and are already available for popular ones;
- The core API logic resides on the API server, enabling consistent behavior across all client libraries; and
- Support for new clouds can be added to the API without changes to clients.

Drivers for Amazon EC2, GoGrid, OpenNebula, Rackspace, Red Hat Enterprise Virtualization Management, RimuHosting, Terremark and vCloud are either written or in-process as is a Microsoft Azure cloud storage driver.

Of course if you can’t hoist apps up into the cloud the exercise is kinda useless so, aside from wanting to be the cloud’s interoperability bridge, Red Hat’s got an application infrastructure or platform-as-a-service (PaaS) play afoot too à la Azure, Google App Engine and VMforce that’s based around its JBoss Enterprise Middleware also part of its Cloud Foundations.

Red Hat claims to be the only company other than Microsoft capable of delivering a cloud stack consisting of an operating system, middleware and virtualization that’ll run a hybrid cloud environment.

It sees enterprises, cloud service providers, ISVs and Software-as-a-Service (SaaS) providers using its JBoss PaaS widgetry to take existing assets and develop new applications and deploy them to a range of public and private clouds, its interoperability vision again.

The company said Wednesday that its next-generation PaaS solution would simplify the development of simple new web applications as well as complex transactional enterprise applications and integrate them into an enterprise.

To advance the scheme it’ll have a reference architecture so existing apps can be re-purposed in the cloud.

The PaaS plan involves Red Hat’s prospective cloud engine for application lifecycle management and promises to let developers use their favorite frameworks and languages, stuff like Java EE, POJO, Spring, Seam, Struts, GWT, Groovy and Ruby. JBoss Developer Studio is supposed to have a bunch of Eclipse plug-ins to deploy applications into a JBoss platform instance in a cloud.

Red Hat expects JBoss cloud images to be available through a variety of public and private clouds including Red Hat Enterprise Linux, Red Hat Enterprise Virtualization, Amazon EC2 and Windows Hyper-V as well as others through its cloud engine.

Let’s remember too that VMware stole a lot of JBoss’ thunder with its acquisition of SpringSource. It converted the Spring Framework into its own cloudified PaaS solution for Java applications.

By the way, Dreamworks (Shrek) Animation is using Red Hat Cloud Foundations to build a “one of the world’s largest” private clouds for future films.

The tug of war over 3PAR has picked up its pace.

Thursday morning Dell upped its offer for the virtualized storage house to $24.30 a share, a scant 30 cents better than HP’s surprise offer of $24 on Monday, but still roughly $1.53 billion, up significantly from the $1.15 billion that 3PAR accepted from Dell last week.

Thursday afternoon HP went to $27 a share, figure $1.8 billion, 11% more than Dell.

Dell now has to decide whether to raise again. It’s got perpetual matching rights.

Dell said Thursday morning that 3PAR had accepted its amended offer and that if the obscure little company walks away this time it’s going to cost its suitor $72 million, up from the $53.5 million termination fee in their original agreement.

HP and Dell are chasing the unprofitable $200 million-a-year 3PAR for its cloud potential.

Wall Street expected HP to counter because at $26 and change at Thursday’s close 3PAR’s stock price remained above Dell’s $24.30 offer. HP’s news pushed it close to $28 in after-hours trading. The Street frothily speculated this week that the bidding could go to $29 a share according to a Reuters survey.

The guy in charge of HP’s servers and storage, David Donatelli, said in a statement, “Our revised proposal offers superior value to 3PAR’s shareholders, while maintaining our disciplined approach to only pursuing acquisitions that we believe will strengthen our portfolio and create long-term value for our shareholders. Not only is our offer superior to Dell’s proposal, HP remains uniquely positioned to execute on this combination given the number of synergies between the two companies.”

According to the story 3PAR told the SEC the other day HP, thinly disguised in the narrative as the unidentified “Company B,” was actually the first company to make an acquisition offer. 3PAR didn’t say what HP was willing to pay back on July 23 only that it was less than the $18 a share Dell eventually put on the table. The rejected HP was given an opportunity to improve on Dell’s number but walked away on August 1. That was just about the time that the Mark Hurd crisis was coming to a head in HP’s executive suite. Hurd was out August 6.

3PAR says Dell originally tried to hold its costs down to $15-$17 a share cash and wouldn’t go to the $18.25 3PAR asked for on July 31 to negotiate exclusively.

See its SEC filing at http://ir.3par.com/phoenix.zhtml?c=214779&p=IROL-secToc&TOC=aHR0cDovL2lyLmludC53ZXN0bGF3YnVzaW5lc3MuY29tL2RvY3VtZW50L3YxLzAwMDExOTMxMjUtMTAtMTk0OTQ1L3RvYy9wYWdl&ListAll=1. The chatty stuff starts on page 19. A Company A and a Company C also make brief appearances. One of them is generally believed to be Oracle. The Wall Street Journal thinks the other one was NetApp. The Register for some reason thinks it was Cisco.

Red Hat Out To Set Cloud Interop Standard
Citrix Virtualizes the Laptop
Dell Tops HP’s 3PAR Bid Then HP Trumps Dell; Over to You, MD
EC2 Creators Get $15m Bankroll
Court Moves Up Neon v IBM Antitrust Case
Centrify’s Got a Cure for the Cloud Security Blues
New Coalition Takes Cloud Down ‘Ecosystem’ Path
Bechtolsheim’s Arista & VMware Collaborate on Visibility
OpenSolaris Board Quits En Masse
RIM’s BlackPad To Joust with iPad
Antivirus Player Gets $100m VC Investment
Eucalyptus Project Revved
Platform Computing Fields Packaged Private Cloud Eval Solution
Server Sales Were Healthy in Q2: IDC
HP Buys Stratavia
US Court Grounds Taiwan CEO
Guess Who’s Drawing AMD’s Server Roadmap Now
Fujitsu Hot for M&A
OpenStack Update
Mark Hurd Sells Ungrateful Stock

In a surprise move Intel is buying McAfee for $7.68 billion, a whopping great 60% premium that will be slightly dilutive for the semiconductor giant initially.

It is Intel’s biggest acquisition ever by a factor of three.

CEO Paul Otellini said during a conference call Thursday morning that the purchase “transitions Intel from a PC company to a computing company.”

Intel explained that that the acquisition, part of its mobile wireless strategy, will let it combine security software and hardware as billions of still relatively innocent, unprotected devices – and the server and cloud networks that manage them – go online. It also differentiates Intel from its competition.

The move is supposed to put security “on a par with energy-efficient performance and connectivity” as a pillar of its business. Intel’s vision includes TVs, cars, medical devices and ATM machines and it noted that cyber threats are spiraling out of control.

So a “fundamentally new approach” is needed and it promised that hardware-enhanced security would lead to breakthroughs in countering the increasingly sophisticated threats.

The move was immediately seen as a reach for inorganic growth with better margins in a business that’s less bumpy than chips. For instance, PC order trends have sharply deteriorated lately. McAfee does close to $2 billion a year, has seen 20% growth recently and fetched close to an 80% gross margin last year. It only makes about $200 million however.

The deal will cost Intel $48 a share in cash. Net of McAfee’s cash, it will cost Intel about $6.8 billion.

Intel will run McAfee as an independent subsidiary reporting to Intel’s Software and Services Group under Renée James.

The security house has 6,100 people. Intel says it will keep most of them including management. Aside from its antivirus widgetry, McAfee’s wares include end-point and networking products and services and an expanding line of gear targeting mobile devices such as smartphones, a market that’s been eluding Intel.

McAfee claims 200 million users.

McAfee has been frequently cited as acquisition bait but never in association with Intel. Intel said that a quiet partnership with McAfee over the last 18 months persuaded it to make the move and then it found a lot of other projects needed to be secured.

Otellini explained that it’s not a matter of bungling but of integration. He said Intel would still work with other security vendors.

The first combined McAfee-Intel products are due in the first part of 2011. James indicated they would involve Intel’s existing Core chips with Atom to follow. Deeper integration will take a while.

Intel means to keep the McAfee brand and to have it continue to support multiple platforms.

The acquisition is expected to dilute Intel’s GAAP earnings slightly the first year and be flat the second year.

The acquisition, already approved by both boards, will hopefully close by December.

Last year Intel bought the embedded OS Wind River.

What comes after the Central Processing Unit (CPU), the Field Programmable Gate Array (FPGA), the Digital Signal Processor (DSP) and the Graphics Processing Unit (GPU)?

Start-up Lyric Semiconductor Inc. says it’ll be a fifth non-digital architecture that it’s inventing called the GP5.

The GP5 is a chip, well, maybe more of a co-processor, meant to embody some magic called probability processing that’s supposed to change today’s processing performance and power consumption by serious orders-of-magnitude. It could reduce the power and space currently demanded by data centers by 10x.

The GP5 is supposed to make an educated guess about exactly what you want when you’re searching the web and calculate the odds of you paying for it with a bogus credit card.

It’s supposed to be a God send for spam filtering, genome sequencing, financial modeling and separating the noise from the real communications traffic among would be terrorists, which is why DARPA, the Defense Advanced Projects Research Agency, and its ilk put $18 million into Lyric, an MIT spin-out that just surfaced this week.

Lyric says its approach fits any application that involves simultaneously considering many possible alternatives and deciding the best guess for the answer, and those apps are growing in number. Google, needless to say, has hired all the probability experts it can find.

Modern algorithms and the biggest of modern computers are being used to make educated guesses but conventional digital processors aren’t very good at it. They’re inefficient and need huge amounts of processing overhead that cost a lot of space, power and money to do it.

Lyric promises to improve on old-style digital computing with performance gains of 1,000x better than the current x86 widgetry from Intel and AMD. In other words, deliver the processing power of 1,000 servers in a single chip.

Between MIT and the four-year-old Lyric, the new way of calculating has been more than 10 years in the making, but the GP5 doesn’t exist yet – at least not in any commercial form. Lyric does hint about “transitioning the technology into some cool James Bond-type applications” for the government the past year but it doesn’t expect to be sampling a commercial dingus until 2013.

The GP5 will run code written in Lyric’s own probability programming language called PSBL, short for Probability Synthesis to Bayesian Logic, an expressive computer programming language for working with probability-based computations. PSBL will be released in the fourth quarter of this year so Lyric and the GP5 can start gathering an ecosystem.

Meanwhile, as a revenue-generating test bed, the first commercial application of Lyric’s probability processing will be Error Correction for flash memory where currently one in every thousand bits stored in a flash memory comes out wrong when the memory is read and where, with the next, denser generation of flash, a scarier one bit in every hundred will be wrong.

Lyric means to remedy this situation, cut errors to 1 bit in every 1,000 trillion and at the same time cut flash’s die size by 30x and improve its power consumption by 12x at a higher throughput than current digital solutions. It could save everybody involved billions of dollars. Widget makers, for one, will be able to offer more storage at lower costs.

It’s got a proof-of-concept processing circuit – fabbed by Taiwan Semiconductor Manufacturing Corporation – that it launched at the Flash Memory Summit this week. The Error Correction technology is available for license along with the support services that Lyric thinks can turn into silicon for any licensee in 12 months. The company expects to close three deals this quarter, presumably with flash memory makers.

Lyric’s magic rests on the development of a new kind of logic gate circuit that uses transistors like dimmer switches rather than like classic on/off switches. These circuits can accept inputs and calculate outputs that are between 0 and 1, directly representing probabilities or levels of certainty. A modern digital processor steps through these operations serially. Lyric’s processors are meant to run probability computations in parallel.

Lyric says it can do with a mere handful of transistors what conventionally takes 500 transistors.

Redesigning processing circuits from the ground up to process probabilities natively – from the gate circuits to the processor architecture to the programming language – is how Lyric is supposed to cut down the thousand conventional processors that many applications need to just one Lyric processor and fetch its 1,000x savings in cost, power and size.

Lyric was started by CEO Ben Vigoda, who thought the widgetry up, and VP of product development David Reynolds and is backed by over $20 million from DARPA and other agencies as well as investments from chairman of the board Ray Stata, founder of Analog Devices and lead partner of Stata Venture Partners.

Lyric expects to hit profitability without more investment; the GP5′s further development will evidently be funded by revenues. The start-up holds 50 fundamental patent filings in probability processing and currently employs 30 people.

Next Up, the Educated Guess Chip
Intel Buys McAfee
HP Posts Hurd’s Last Quarter
HP Turns CEO Search Over to Headhunters
HP Rationale Number….
MokaFive Betas New MSP Widgetry
Top Techs Turn Drama Queens
RightScale To Manage Windows Apps in the Cloud
Rackspace Windows Widgetry Goes GA
Dell Spends Lavishly To Buy 3PAR
Ex-IBM Higher-Up Could Do Six Months in Jail
ARM Finds Smooth-Stone To Hurl at Intel
Oracle Kills OpenSolaris
Oracle Sues Google Android
HP Buys Fortify Software
Intel Fields New Atoms
Verizon Cloud First To Pass Credit Card Test
Interest in Novell Reportedly Dwindles
Nvidia Developing Tablet Chip: Bloomberg
Ex-CA CEO Loses Bid To Get Sprung Early
Intel Buys TI’s Cable Modem Business
iPad Blamed for Netbook Shortfall
Google Claims California E-Mail Contract Rigged
This is Not a Good Thing Except Maybe for the Chinese
WTO Tells Europe To Can Tech Tariffs
CA Buys 4Base
India’s Great Charlatan Makes Bail
IBM Buys Unica
Microsoft Brings in New MSN Boss

Well, gee, Cisco’s results Wednesday started out looking perfectly fine, strong in fact.

It earned a record 43 cents a share, or 33 cents net, up 79%, on sales worth a record $10.8 billion, up 27% year-over-year, which seemed to say spending is coming back. Only trouble was the numbers didn’t match or better yet exceed Wall Street’s rosier forecasts of 42 cents on $10.88 billion. And its margin slipped a point sequentially to 64% in part because of supply shortages.

Cisco said it ran into a disconcerting “mixed signal pattern that we haven’t seen before.”

Orders dropped for maybe four weeks between late June and early July then the pattern confusingly reversed itself. Only you don’t know whether Cisco influenced that turnabout. Its overall product orders were up 23% in the quarter.

Not only did Cisco fail to manage expectations but CEO John Chambers, who has become something of a Wall Street early warning system, made seemingly contradictory statements Wednesday and Thursday about seeing “unusual uncertainty” surrounding spending and jobs, with his customers forecasting only 2% growth in the second half, but Cisco squeezing 12%-18% growth out of that this quarter. And everyone knows John’s a glass half-full kinda guy.

Well, Cisco dropped an initial 9.4% after hours Wednesday only to worsen Thursday to 9.99% and take practically the whole tech sector down with it during a week when the bears came out again in earnest.

After multiple repetitions of the same story it’s still unclear what Chambers thinks will really happen with IT spending going forward other than that the recovery looks like it’s going to be very slow, if not imperceptible, like the Federal Reserve said Tuesday.

Still he said on the basis of things Cisco can “control or influence” it’ll do a conservative $10.64 billion to $10.83 billion this quarter, up 18%-20%. Unfortunately Wall Street wanted projections of $10.95 billion.

Chambers still maintains the possibility of a double dip is “relatively low.” (From your mouth to God’s ear, Johnny boy.)

As an indication of Cisco’s confidence, Chambers said the company would hire another 3,000 people, mostly in the US, the next couple of quarters. It hired 2,000 last quarter. Some observers consider the move risky.

There was a lot of downgrading going on Thursday.

Gartner Tuesday pulled in its second-half worldwide spending projections from up 4.1% in April to up only 2.9%.

Oracle Claims There’s Still Some Fire in the Old Sparc
Cisco Bombs Big Time; Raises Macro Uncertainties
Hey, Fella, Your Tablet is Calling
EC2 To Resell SUSE Linux By the Hour
Amazon Thought To Be Fetching $500m from its Cloud
IBM Drops Non-Compete Suit against Oracle Renegade
Hurd Aftermath
Google Wave Crashes on Empty Shore
Novell’s Sales Resistance Hurts its Numbers
Salesforce Blowhard Eats its Words
Apple Short One iPhone Chief
HP webOS Tablet Reportedly Due Q1
SAP Concedes It Owes Oracle Millions
Skype To IPO
Google Korea Raided by Privacy Police
HP Hires Ex-AMD CIO
EC Pairs with FTC on Apple Probe: NY Post
IBM Buys Datacap
Jonathan Schwartz Gets a Part-Time Gig
They Do Things Different Down in Texas

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