Week In Review: HP Buying Spree, Smartphone Shakeout

By Don Reisinger  |  Posted 09-16-2010

Week In Review: HP Buying Spree, Smartphone Shakeout

HP has acquired security firm ArcSight, but M&A activity is not the only news highlight this week. In the past seven days we have also seen the Android OS smartphone OS continue to steal market share, and Nokia steal a new CEO from Microsoft's executive ranks. Also on the wireless front, 4G activity abounds. Verizon announced that it will be bringing 4G LTE wireless service to 30 cities by the end of the year, while Sprint launched its competing WiMAX service in New York City this week. Twitter launched a major redesign that could impact your company's social-marketing efforts. Let's take a closer look at the latest headlines and discuss why you should keep a close eye on the companies involved.

HP to Acquire ArcSight

HP has agreed to acquire ArcSight for a whopping $1.5 billion. ArcSight joins a growing list of companies now owned or soon to be acquired by HP, including wireless device vendor Palm and storage vendor 3PAR. According to HP, it acquired ArcSight to bolster its security information and event management (SIEM) offering.

The CIO InsightHP's decision to acquire ArcSight is a good one. And as the company noted in its announcement, it should go a long way in improving its security solutions which have been lacking in recent years. If your oganization is heavily invested in HP's many enterprise solutions, ArcSight will only improve that slate of services.

Android OS Smartphone Market Share

According to market-research firm ComScore, the Android OS smartphone platform gained 5 percent market share in the U.S. in 2Q 2010, capturing a total of 17 percent of the space. Apple's iOS platform and RIM's BlackBerry OS lost 1.3 percent and 1.8 percent of the market, respectively in that period. Currently, RIM dominates 39.3 percent of the OS market, while Apple has 23.8 percent of the space.

The CIO Insight

Keep a close eye on the growth of Android OS. For now, Android is not an enterprise-worthy option. But that's not going to stop your tech-savvy workers from trying to use their nifty new Droid smartphones in your enterprise. As Google starts dominating the smartphone market -- and realizes that the corporate world is integral to its future success -- it might only be a matter of time before it gets serious about adding the security and management features that the enterprise requires.

Twitter Launches Major Redesign

Twitter has launched a major redesign that, the company hopes, will vastly improve the experience users currently are having on the site. The new Twitter includes the ability for users to view embedded multimedia content in a multi-column display. It's a much different look than what most users are accustomed to.

The CIO Insight

If your company is using Twitter for social marketing, be sure to monitor the reaction users have to the site's new design. As Facebook has shown time and again, users don't necessarily like redesigns. If Twitter has a revolt on its hands, expect more changes to the site (and the makeup of the user base). Be ready to help your marketing teams adjust their plans accordingly and you'll look like a hero.

Nokia Hires Microsft's Elop as CEO

Nokia has hired Stephen Elop as its new CEO.  Elop formerly worked as

Microsoft's Business Division president. He will assume the role of CEO on September 21. The news launched additional executive turnover at the smartphone giant, with Nokia's chairman among those announcing plans to depart.

The CIO Insight

Stephen Elop's decision to work with Nokia is a blow to Microsoft's Business Division. But exactly what it will do for Nokia and its Symbian platform is anyone's guess. Elop will likely bring some Microsoft-like ideas to the ailing company. But the real question is whether or not he will be able to revive the platform and make it more corporate-friendly.

4G: LTE and WiMAX

Verizon will launch its 4G LTE network in 30 cities by the end of 2010. The service will initially debut in what Verizon is calling the "National Football League Cities." The company plans to roll out its next-gen wireless network to the entire country by 2013. Meanwhile, Sprint continues its rollout of Clearwire's WiMAX next-generation wireless technology with the introduction of services in New York City, including enterprise solutions targeted at healthcare organizations. WiMAX is already available in Portland, Ore., and Baltimore, Md., among other cities.

The CIO Insight

If you're in a big city, chances are you'll be able to capitalize on Verizon's high-speed wireless service next year. If you're not, you'll be stuck with 3G for the foreseeable future. Meanwhile, Sprint has been out of the gate since last year with its 4G alternative, WiMAX. The company announced its New York City launch this week with a major emphasis on enterprise applications, including healthcare. Industry experts debate which options - WiMAX or LTE - will ultimately win the 4G race. No matter the ultimate winner, 4G stands to drastically change the way you do business. Not only is it much faster than 3G, but it will provide additional bandwidth for accessing information in real time while mobile, which will improve your employees' productivity. The wireless carriers have a long way to go on their infrastructure buildouts, though, before 4G is a mobile reality that can be relied upon for mission-critical enterprise applications.