CA to buy NetQoS for $200 million

CA Monday announced plans to acquire NetQoS for $200 million, adding application-aware network and systems management products to the software maker's broad enterprise IT management portfolio. The added technology will also boost CA's efforts to manage advanced infrastructures that feature virtual systems and cloud computing environments, the vendor says. "NetQoS technology complements CA's Wily products and will help network and systems engineers better design their infrastructure to ensure application issues don't occur from the start," says Roger Pilc, senior vice president and general manager of CA's infrastructure and automation business unit. "The technologies will help network and systems management be more application aware." The deal, anticipated to close in CA's fiscal third quarter, would augment an already full software lineup grown via previous acquisitions of Wily Technology, Concord Communications and Aprisma. Hottest tech M&A deals of 2009 CA executives say the pending acquisition offers little overlap by way of products and will help CA products diagnose the root cause of application errors within the network and systems infrastructure.

CA executives say NetQoS products, designed for network managers responsible in part for application delivery, will add to the company's Wily products that detect performance problems in the application environment. Customers can visualize the links and relationships between the delivery technologies and the business applications and services with Wily, and understand the real-time application and service activity across those links and relationships with NetQoS traffic flows," says Jasmine Noel, co-founder and principal analyst at Ptak, Noel & Associates. NetQoS tools are able to detect application performance problems using network-centric measures such as traffic flow. "The acquisition is good because NetQoS has a focus on application delivery, so when combined with Wily, it offers a good one-two punch. With some areas of overlap in the former Concord eHealth and Aprisma Spectrum tools, CA's Pilc say the company will work to address issues after the deal closes. NetQoS technology will target network engineers who focus on application delivery where the management of traffic flows is the primary task, rather than the management of thousands of network devices." CA also expects the NetQoS technology to play a bigger role in its virtual and cloud management offerings. Noel says customers should not expect NetQoS tools to get lost in the shuffle as CA could have targeted plans for each product suite. "In terms of portfolio, CA now has two network performance management solutions, eHealth and NetQoS. But I think CA has specific targets for both solutions," she says. "CA's eHealth technology will target network engineers who spend most of their time managing performance of specialized network infrastructure.

With its ability to track flows across virtual and physical elements, NetQoS tools could be coupled with Cassatt assets CA acquired earlier this year, the company says. NetQoS co-founder and CEO Joel Trammel says CA represented the best fit with his company's technology, and customers shouldn't expect any change in products or support as the deal unfolds. With no previous partnerships, the two vendors share some 200 customers and CA's Pilc foresees "very little modification in the NetQoS product set and its approach to customers going forward." That is why NetQoS executives found the deal to be synergistic. NetQoS has more than 1,000 customers worldwide and reported revenue of $56 million in 2008. "We sought out CA because we saw a clear fit with us and the company's success in acquiring Wily, Concord and Aprisma. Industry watchers expect the deal could benefit both parties going forward if CA sales teams focus on the NetQoS suite. "For a small vendor, being acquired could be good because a larger sales force means a bigger pipeline.

We were excited and see the clear fit between tying these acquisitions together," Trammel says. Or it could be bad if it gets lost in the portfolio. Do you Tweet? In the Swainson era, CA has handled its acquisitions fairly well, and with Wily as a tag-team partner I don't see NetQoS getting lost," Noel says. Follow Denise Dubie on Twitter here.  

Intel: Chips in brains will control computers by 2020

By the year 2020, you won't need a keyboard and mouse to control your computer, say Intel Corp. researchers. Scientists at Intel's research lab in Pittsburgh are working to find ways to read and harness human brain waves so they can be used to operate computers, television sets and cell phones. Instead, users will open documents and surf the Web using nothing more than their brain waves.

The brain waves would be harnessed with Intel-developed sensors implanted in people's brains. Researchers expect that consumers will want the freedom they will gain by using the implant. "I think human beings are remarkable adaptive," said Andrew Chien, vice president of research and director of future technologies research at Intel Labs. "If you told people 20 years ago that they would be carrying computers all the time, they would have said, 'I don't want that. The scientists say the plan is not a scene from a sci-fi movie - Big Brother won't be planting chips in your brain against your will. I don't need that.' Now you can't get them to stop [carrying devices]. There are a lot of things that have to be done first but I think [implanting chips into human brains] is well within the scope of possibility." Intel research scientist Dean Pomerleau told Computerworld that users will soon tire of depending on a computer interface, and having to fish a device out of their pocket or bag to access it. Instead, they'll simply manipulate their various devices with their brains. "We're trying to prove you can do interesting things with brain waves," said Pomerleau. "Eventually people may be willing to be more committed ... to brain implants. He also predicted that users will tire of having to manipulate an interface with their fingers.

Imagine being able to surf the Web with the power of your thoughts." To get to that point Pomerleau and his research teammates from Intel, Carnegie Mellon University and the University of Pittsburgh, are currently working on decoding human brain activity. People tend to show the same brain patterns for similar thoughts, he added. Pomerleau said the team has used Functional Magnetic Resonance Imaging (FMRI) machines to determine that blood flow changes in specific areas of the brain based on what word or image someone is thinking of. For instance, if two people think of the image of a bear or hear the word bear or even hear a bear growl, a neuroimage would show similar brain activity. Pomerleau said researchers are close to gaining the ability to build brain sensing technology into a head set that culd be used to manipulate a computer. Basically, there are standard patterns that show up in the brain for different words or images.

The next step is development of a tiny, far less cumbersome sensor that could be implanted inside the brain. Almost two years ago, scientists in the U.S. and Japan announced that a monkey's brain was used to to control a humanoid robot. Such brain research isn't limited to Intel and its university partners. Miguel Nicolelis, a professor of neurobiology at Duke University and lead researcher on the project, said that researchers were hoping its work would help paralyzed people walk again. Charles Higgins, an associate professor at the university, predicted that in 10 to 15 years people will be using "hybrid" computers running a combination of technology and living organic tissue. And a month before that, a scientist at the University of Arizona reported that he had successfully built a robot that is guided by the brain and eyes of a moth.

Today, Intel's Pomerleau said various research facilities are developing technologies to sense activity from inside the skull. "If we can get to the point where we can accurately detect specific words, you could mentally type," he added. "You could compose characters or words by thinking about letters flashing on the screen or typing whole words rather than their individual characters." Pomerleau also noted that the more scientists figure out about the brain, it will help them design better microprocessors. He said, "If we can see how the brain does it, then we could build smarter computers."

Apple introduces its first home server

Among the retooling of the more prominent iMac and MacBook lines earlier Tuesday, Apple quietly introduced its first small-scale server, a $999 box based on the Mac mini that one analyst called the only significant announcement of today. Apple installs the server edition of Mac OS X 10.6, aka Snow Leopard, which costs $499 when sold separately. "This is the one interesting thing about today's announcements," argued Ezra Gottheil, an analyst with Technology Business Research. "It's perfect for a very small business or a classroom, but it will make a sweet home server as well." Apple did not pitch the Mac mini-based server as at-home hardware - instead, it touted the new system as "perfect for any small business or group" - but Gottheil sees it as the company's first move into a potentially broader market. "This wouldn't be bad in the house," he said. "It has a bunch of USB ports, 4GB of memory, it can connect to a home wireless network, and decent if not great graphics." The $999 Mac mini is equipped with a 2.53GHz Intel Core Duo processor, an Nvidia GeForce 9400M integrated graphics chipset - the same as used in the entry-level MacBook and the three least-expensive MacBook Pro models - five USB 2.0 ports, a Gigabit Ethernet connection and single FireWire 800 port. Dubbed the "Mac mini with Snow Leopard Server," the new device is essentially a $799 Mac mini with two 500GB hard drives squeezed into the petite case, compared to the one 320GB drive in the stand-alone mini.

Apple yanked the optical drive from the Mac mini to fit the second hard drive in the case, a potential problem unless users pop for the $99 external SuperDrive. Even though Gottheil trumpeted the Mac mini as a potential rival to Windows in the home server market, he realized that the biggest audience was very-small-to-small businesses. "This is significant," he said. "This says Apple is going to put a real toe-hold in really small business. And unlike the Time Capsule, Apple's backup and wireless device, the Mac mini lacks a built-in router. It's a 'My First Server' device, a 'My First Pony,' for small offices that want to get serious about backup and hosting their own e-mail." Its other selling point, said Gottheil, is the unlimited user allowance that comes with Snow Leopard Server. "You can have as many users as you want connected to this," Gottheil said. "You can't get that from Microsoft for this price." Microsoft has been selling a version of its Windows operating system specially crafted for home servers since 2007; it's working on a Windows 7-compatible edition of Windows Home Server, but has delayed the release of that upgrade, citing the need for additional testing . The Windows 7-ready upgrade is now set to ship before the end of the year. The Mac mini with Snow Leopard Server is available now on Apple's online store, and will ship within 24 hours of ordering.

Windows Home Server supports a maximum of 10 users.

Google Voice Frees Your Voicemail, and Your Number

Until yesterday, signing up for a Google Voice account required you to pick a new phone number - not a pleasant option for those who have kept the same digits for years. When you sign up for Google Voice - which is still not widely available to the public (you need to get an invite or request one) - you can either choose Google one-stop phone number or keep your own for a more pared-down experience. Now Google has enabled users to keep their existing phone numbers and get (most of) the features Google Voice offers, including Google's excellent voicemail service.

Keeping your old digits gives you: Online, searchable voicemail Free automated voicemail transcription Custom voicemail greetings for different callers Email and SMS notifications Low-priced international calling Going for the full-throttle Google experience gives you all of the above plus: One number that reaches you on all your phones SMS via email Call screening Listen In Call recording Conference calling Call blocking If you already have a Google Voice number, you can add the voicemail option to any mobile phone associated with the account. Happily, Google circumvented this problem earlier this month. Some of the awesome benefits are explained in Google's YouTube explanation: Since voicemails are transcribed and placed online, even made publicly available for sharing purposes, there has been some danger of said voicemails appearing in search results. These new features are both freeing and limiting: you can keep your number but sacrifice some of the goodies that make Google Voice a powerful contender in the telephony business. Follow Brennon on Twitter: @neonmadman

Full number portability is likely coming in the future, after, of course, Google deals with AT&T, Apple, and the FCC. But some have high hopes that eventually the opposition will grow to accept and embrace Google Voice.

HP extends data center, campus Ethernet switches

HP this week unveiled enhancements to its data center and campus switching portfolio designed to increase density and tightly integrate switching with blade server systems. The extensions are intended to better align HP's data center and network products for the market and mindshare battle with Cisco. The evolution of Ethernet The products include blade switches designed to reduce cost and improve security in the data center; an 8Gbps FibreChannel Virtual Connect module and firmware upgrade intended to tune bandwidth to application requirements; and new chassis and modules for its ProCurve 5400 and 8200 Ethernet switches to provide an array of configurations depending on network need. Cisco's recently shipped Unified Computing System integrates data center servers, switching, virtualization and storage access, and are viewed as a competitive assault on HP and IBM's traditional data center turf.

The new HP blade switches include the 10G Ethernet ProCurve 6120XG and ProCurve 6120G/XG. The 6120XG sports eight 10G uplinks - one 10GBASE-CX4 Ethernet or one SFP+, five SFP+ that can be either 1Gbps or 10Gbps, and two midplane crosslinks or SFP+. The 6120XG is also Converged Enhanced Ethernet (CEE) "ready," which means it will support an upgrade to the CEE standards for the integration of Ethernet and Fibre Channel in the future. The campus LAN enhancements are viewed as lower cost alternatives to Cisco in that market as well. Those standards are expected for ratification in the first or second quarter of 2010. The 6120G/XG is designed to facilitate the transition from 1G Ethernet to 10G Ethernet. In addition to aiding in the migration to 10G, the 6120G/XG supports the attachment of legacy network equipment in the data center. It features one 10G Ethernet CX4 port for short distance data center links; two 10G Ethernet XFP ports for copper of fiber connectivity; two 1G Ethernet SFP ports; and four 1G Ethernet RJ45 ports. The 6120XG costs $11,500; the 6120G/XG costs $5,500. For the campus LAN, HP unveiled a half-size chassis of its 8212zl switch.

It features six chassis slots and the same hardware and software architecture as the 8212zl.  The 8206zl costs $12,599. New modules for both the 8200zl and 5400zl switches include a 24-port 10/100/1000 PoE+ card, $4,199; a 20-port 10/100/1000 PoE+ board with four SFP ports, $4,199; a 24-port 10/100 PoE+ card, $2,499; and a four port 10G SFP+ module, $4,199. These products are intended to support new bandwidth intensive applications such as video while reducing cost and power consumption. The 8206zl is designed for high-density LAN access, mid-size LAN core and distribution layer applications, and data center end-of-row access and aggregation. HP also unveiled a 1500 watt Power over Ethernet Plus (PoE+) power supply for the lines at a list price of $1,099. The company is also offering bundled configurations of its 5400 switches. It is backward compatible and replaces a 20-port 4Gbps Fibre Channel Virtual Connect module already offered by HP. It also costs the same as the 4Gbps module - $9,499. The Virtual Connect firmware upgrade provides dynamic bandwidth adjustment depending on application requirements, HP says. A 12-slot 5412zl with 96 Gigabit Ethernet ports - 92 ports of PoE+ and four ports of SFP - and two 1500w PoE+ power supplies costs $17,199. A 48-port 5406zl bundle - 40 ports of PoE+ gigabit ports and four SFP ports - plus one 1500w PoE+ power supply costs $8,599. The Virtual Connect 8Gbps FibreChannel module supports 20 ports of 8Gbps uplink and downlink bandwidth. It also supports twice the number of virtual LANs - 128 - per uplink set.

HP would not discuss product plans for data center core switches and 48-port and higher top-of-rack 10G switches, with or without support for FibreChannel-over-Ethernet; nor would it discuss product plans for a FibreChannel-over-Ethernet Virtual Connect module. All products are available now.

Dell-Perot Deal Spells Trouble for Tier-Two Outsourcers

The consolidating IT services market contracted a bit further on Monday with Dell's announcement that it will acquire Perot Systems for $3.9 billion. The fact that Dell paid nearly a 70 percent premium on Perot's stock price to seal the deal confirms "the value of integrating hardware and services for infrastructure management is clearly gaining momentum," says Peter Bendor-Samuel, CEO of outsourcing consultancy Everest Group, which counts both Perot and Dell among its clients. The Texas twosome can hardly match the scale of HP or IBM on the outsourcing front-Perot brings just $2.7 billion in services revenue to the table-but the matchup is clearly made in their image. It also suggests, he adds, that the size of outsourcing/hardware companies will continue to increase in importance.

But Dell, struggling as a hardware manufacturer at a time when infrastructure sales are slow, wants in on the outsourcing business, even if it takes several acquisitions to do it. "Perot's capabilities are focused on a few geographies and industries, which Dell will need to grow or complement with other acquisitions to attain greater scale to compete head-on with the likes of HP and IBM," says Bendor-Samuel. [ Related: Dell Perot Deal: Big Price Tag, Small Industry Impact and FAQ: What the Dell-Perot Merger Means for the IT Industry. ] Neither company is likely to be too worried about the competition at this point. While Perot operates in some high-interest industries-most notably healthcare and government services-its footprint remains relatively small. It's more likely that Dell-Perot will make inroads on smaller deals. "Dell and Perot Systems can exert pressure in this sector, and if played right, could see their market share increase in the midmarket in both products and services," says Stan Lepeak, managing director at outsourcing consultancy EquaTerra. India-based providers who've been attempting to ramp up their infrastructure offerings "must continue to find ways to grow and reach meaningful scale," says Bendor-Samuel. As such, it's the tier-two players that will be watching the Dell-Perot deal closely.

Meanwhile, traditional IT services players who've yet to walk down the aisle with a hardware vendor-such as ACS, CSC and Unisys-may be wondering how wise it was to stay single. "They will be asking themselves how they can grow in the infrastructure space to meet the increased threat posed by the integrated hardware and services offerings of IBM, HP, and now Dell," Bendor-Samuel says. While Dell may be eager to keep Perot clients-and their relatively healthy profit margins-existing customers should proceed with caution (See Five Steps to Take if Your Outsourcer is Sold.) Specifically, clients should assess any impact the deal has on non-Dell hardware options, Lepeak advises. As for integration issues, Dell and Perot may have an easier go of it than most. "Good cultural alignment, close physical proximity for key leaders, and the absence of an entrenched services business at Dell-together with the obvious convergence around the value of Perot as a hardware channel for Dell and Dell as a lead generator for Perot-should make integration much faster and less painful than is the norm for deals of this scale," says Mark Robinson, EquaTerra's chief operating officer. Those most worried about the Perot deal are Dell customers working with other outsourcers. "While growing the legacy Perot Systems' client base, Dell must use caution not to alienate hardware clients who are using other service providers for outsourcing services," says Lepeak.