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NCR Announces Second Quarter 2014 Results:  Software-related revenue growth continues to drive increased operational gross margin

NCR Corporation (NYSE: NCR) reported financial results today for the three months ended June 30, 2014.

"We made expected progress and generated solid results during the second quarter. In particular, I was pleased with software-related revenue growth of 42%, and organic software-related revenue growth of 15%," said Chairman and CEO Bill Nuti. "Our performance was led by Financial Services, where we are seeing continued demand for our branch transformation solutions and our expanded software portfolio following the acquisition of Digital Insight earlier this year."

Nuti continued, "As we enter the second half of our fiscal year we are implementing a restructuring plan focused on reallocating our resources to our highest growth, highest margin opportunities; in essence, aligning our resources to the realities of our transformed revenue streams. This is the right time for NCR to take this step now that we have the operational assets we need for the future, and have had time to assess the impact of our acquisitions and organic investments. This action, beyond being strategically sound, is also economically compelling. As a result of this restructuring program, NCR will achieve run-rate savings of approximately $90 million per year by 2016."

Q2 Financial Summary

  Second Quarter
$ in millions, except per share amounts 2014       2013       Change
Revenue $1,658 $1,535 8% *
Income from operations $169 $139 22%
Non-pension operating income (NPOI) $210 $182 15%
Diluted earnings per share $0.53 $0.51 4%
Non-GAAP diluted earnings per share $0.68 $0.68
 

* Revenue growth of 9% on a constant currency basis.

In this release, we use the non-GAAP measures non-pension operating income (NPOI), non-GAAP diluted earnings per share, free cash flow and revenue growth on a constant currency basis. These non-GAAP measures are described and reconciled to their corresponding GAAP measures elsewhere in this release.

Q2 Supplemental Revenue Information

    Second Quarter
$ in millions 2014       2013       Change
Software-as-a-Service (SaaS) $ 125   $ 36   247 %
Software License/Software Maintenance 172 154 12 %
Professional Services 149   124   20 %
Total Software-Related Revenue 446 314 42 %
Hardware 637 664 (4 %)
Other Services 575   557   3 %
Total Revenue $ 1,658   $ 1,535   8 %
 

Software-related revenue increased 42% in the second quarter, including 247% growth related to SaaS. Excluding the contribution of Digital Insight, software-related revenue increased 15% and SaaS revenue increased 17%.

Q2 Operating Segment Results

Second Quarter
$ in millions 2014       2013       % Change
Revenue by segment
Financial Services $ 900 $ 782 15 %
Retail Solutions 503 515 (2

)

%

Hospitality 170 158 8 %
Emerging Industries 85   80   6 %
Total Revenue $ 1,658   $ 1,535   8 %
Operating income by segment
Financial Services $ 137 $ 95
% of Financial Services Revenue 15.2 % 12.1 %
Retail Solutions 48 49
% of Retail Solutions Revenue 9.5 % 9.5 %
Hospitality 23 27
% of Hospitality Revenue 13.5 % 17.1 %
Emerging Industries 2 11
% of Emerging Industries Revenue 2.4 % 13.8 %
Segment operating income $ 210   $ 182  

% of Total Revenue

12.7 % 11.9 %
 

Revenue increased 8% compared to the prior year led by strong growth in Financial Services, Hospitality and Emerging Industries. Within Financial Services, branch transformation continued to drive strong growth, and Digital Insight contributed $87 million of revenue in the second quarter of 2014. Retail Solutions results were as expected due to a difficult comparison versus the prior year.

Segment operating income increased 15% and as a percentage of total revenue increased 80 basis points compared to the prior year. The increase was led by Financial Services, where growth was driven by a higher mix of software-related revenue. Retail Solutions operating income was as expected, and improved as a percentage of Retail Solutions revenue compared to Q1 2014. Hospitality operating income was lower than the prior year due to a large software transaction in the prior year period, and improved significantly as a percentage of Hospitality revenue compared to Q1 2014. Emerging Industries operating income was negatively impacted by onboarding costs associated with new managed services contracts and continued investment in Small Business.

Free Cash Flow

  Second Quarter
$ in millions 2014       2013  
Net cash provided by operating activities $ 80 $ (32 )
Total capital expenditures (73 ) (44 )
Net cash (used in) provided by operating activities from discontinued operations (22 ) (25 )
Pension discretionary contributions and settlements 18   80  
Free cash flow $ 3   $ (21 )
 

Free cash flow increased mainly due to higher net income and improvements in working capital.

More information on NCR’s Q2 2014 earnings, including additional financial information and analysis, is available on NCR’s Investor Relations website at http://investor.ncr.com/.

2014 Outlook

Income from operations (GAAP) and Diluted earnings per share (GAAP) have been revised to reflect the impact of the expected charge of $150 million, or $0.61 per diluted share, to be incurred in connection with the restructuring plan described below. There have been no changes to revenue, non-pension operating income or non-GAAP diluted EPS included in the table below.

$ in millions, except per share amounts 2014
Guidance
      2013
Actual
Revenue $6,750 - $6,850 (1) $6,123
Year-over-year revenue growth 10% - 12% (1) 7%
Income from operations (GAAP) $580 - $600 (2) (3) $666 (2)
Non-pension operating income (NPOI) $900 - $920 $717
Diluted earnings per share (GAAP) $1.75 - $1.85 (2) (3) $2.67 (2)
Non-GAAP Diluted EPS $3.00 - $3.10 $2.81
 

(1) Includes 1% of expected unfavorable foreign currency fluctuations.

(2) For 2013, includes actuarial mark-to-market pension adjustment; for 2014, excludes actuarial mark-to-market pension adjustments to be determined in Q4 2014.

(3) Revised to reflect the expected pre-tax charge of $150 million, or $0.61 per diluted share, related to the restructuring plan described below.

NCR expects approximately $200 million of other expense, net including interest expense in 2014 and that its full-year 2014 effective income tax rate will be approximately 26%.

NCR announced a restructuring plan to strategically reallocate resources to position NCR to focus on our highest growth, highest margin opportunities in the software-driven consumer transaction technologies industry. The program is centered on ensuring our people and processes are aligned with our continued transformation and include: rationalizing our product portfolio to eliminate overlap and redundancy; end-of-lifeing older commodity product lines that are costly to maintain and provide little to no return; moving lower productivity services positions to our new centers of excellence due to the positive impact of services innovation; and reducing layers of management and organizing around divisions to improve decision-making, accountability and strategic execution.

NCR expects to incur a related pre-tax charge in the range of approximately $150 million to $200 million that will be included in income from operations, with approximately $150 million recorded in 2014 and the remainder recorded in 2015. The estimate includes both severance and asset related charges. The cash impact of the restructuring plan is expected to be approximately $50 million in 2014 and $50 million in 2015. Annualized savings are expected to reach approximately $90 million by 2016.

Q3 2014 Outlook

For the third quarter of 2014, the Company expects non-pension operating income (NPOI) to be in the range of $215 million to $225 million, compared to $185 million in the third quarter of 2013 and income from operations to be in the range of $50 million to $60 million, compared to $145 million in the third quarter of 2013. Income from operations includes an estimated pre-tax charge of $125 million in the third quarter of 2014 related to the restructuring plan described above. NCR expects its third quarter 2014 effective income tax rate to be approximately 28% and other expense, net including interest expense to be approximately $50 million.

2014 Second Quarter Earnings Conference Call

A conference call is scheduled for today at 4:30 p.m. (EDT) to discuss the second quarter results and guidance for third quarter and full-year 2014. Access to the conference call and accompanying slides, as well as a replay of the call, is available on NCR's web site at http://investor.ncr.com/. Additionally, the live call can be accessed by dialing 888-245-0932 and entering the participant passcode 2819778.

About NCR Corporation

NCR Corporation (NYSE: NCR) is the global leader in consumer transaction technologies, turning everyday interactions with businesses into exceptional experiences. With its software, hardware, and portfolio of services, NCR enables more than 485 million transactions daily across the financial, retail, hospitality, travel, telecom and technology industries. NCR solutions run the everyday transactions that make your life easier.

NCR is headquartered in Duluth, Georgia with over 29,000 employees and does business in 180 countries. NCR is a trademark of NCR Corporation in the United States and other countries. NCR encourages investors to visit its web site which is updated regularly with financial and other important information about NCR.

Web site: www.ncr.com
Twitter: @NCRCorporation
Facebook: www.facebook.com/ncrcorp
LinkedIn: http://linkd.in/ncrgroup
YouTube: www.youtube.com/user/ncrcorporation

Note to Investors This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements use words such as “expect,” “anticipate,” “outlook,” “intend,” “believe,” “will,” “should,” “would,” “could” and words of similar meaning. Statements that describe or relate to NCR’s future plans, goals, intentions, strategies or financial outlook, and statements that do not relate to historical or current fact, are examples of forward-looking statements. The forward-looking statements in this release include statements about the transformation of NCR and its business; the demand for NCR's branch transformation and financial services software solutions; NCR's recently announced restructuring plan and its costs, expected benefits and results; NCR's anticipated growth; and NCR's 2014 financial outlook (including in the sections entitled “2014 Outlook” and “Q3 2014 Outlook”). Forward-looking statements are based on our current beliefs, expectations and assumptions, which may not prove to be accurate, and involve a number of known and unknown risks and uncertainties, many of which are out of NCR's control. Forward-looking statements are not guarantees of future performance, and there are a number of important factors that could cause actual outcomes and results to differ materially from the results contemplated by such forward-looking statements, including those factors relating to: domestic and global economic and credit conditions; the impact of our indebtedness and its terms on our financial and operating activities; our ability to successfully introduce new solutions and compete and in the information technology industry; the transformation of our business model and our ability to sell higher-margin software and services; defects or errors in our products; manufacturing disruptions; the historical seasonality of our sales; foreign currency fluctuations; the availability and success of acquisitions, divestitures and alliances, including the acquisition of Digital Insight; our pension strategy and underfunded pension obligation; the success of our recently announced restructuring plan; tax rates; compliance with data privacy and protection requirements; reliance on third party suppliers; development and protection of intellectual property; workforce turnover and the ability to attract and retain skilled employees; environmental exposures from our historical and ongoing manufacturing activities; and uncertainties with regard to regulations, lawsuits, claims and other matters across various jurisdictions. Additional information concerning these and other factors can be found in the Company's filings with the U.S. Securities and Exchange Commission, including the Company’s most recent annual report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K. Any forward-looking statement speaks only as of the date on which it is made. The Company does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Non-GAAP Financial Measures While NCR reports its results in accordance with Generally Accepted Accounting Principles in the United States, or GAAP, in this release NCR also uses the non-GAAP measures listed and described below.

Non-Pension Operating Income and Non-GAAP Diluted Earnings Per Share. NCR’s non-pension operating income and non-GAAP diluted earnings per share are determined by excluding pension expense and special items, including amortization of acquisition related intangibles, from NCR’s GAAP income (loss) from operations. Due to the significant change in its pension expense from year to year and the non-operational nature of pension expense and these special items, NCR's management uses non-pension operating income and non-GAAP diluted earnings per share to evaluate year-over-year operating performance, to manage and determine the effectiveness of its business managers and as a basis for incentive compensation. NCR believes these measures are useful for investors because they provide a more complete understanding of NCR's underlying operational performance, as well as consistency and comparability with NCR's past reports of financial results.

Free Cash Flow. NCR defines free cash flow as net cash provided by/used in operating activities and cash flow provided by/used in discontinued operations less capital expenditures for property, plant and equipment, additions to capitalized software, discretionary pension contributions and settlements. NCR's management uses free cash flow to assess the financial performance of the Company and believes it is useful for investors because it relates the operating cash flow of the Company to the capital that is spent to continue and improve business operations. In particular, free cash flow indicates the amount of cash generated after capital expenditures which can be used for, among other things, investment in the Company's existing businesses, strategic acquisitions, strengthening the Company's balance sheet, repurchase of Company stock and repayment of the Company's debt obligations. Free cash flow does not represent the residual cash flow available for discretionary expenditures since there may be other nondiscretionary expenditures that are not deducted from the measure. Free cash flow does not have a uniform definition under GAAP and, therefore, NCR's definition may differ from other companies' definitions of this measure.

Revenue Growth on a Constant Currency Basis. NCR’s period-over-period revenue growth on a constant currency basis excludes the effects of foreign currency translation. Due to the variability of foreign exchange rates from period to period, NCR’s management uses revenue on a constant currency basis to evaluate period-over-period operating performance. Revenue growth on a constant currency basis is calculated by translating prior period revenue at current period monthly average exchange rates.

NCR's definitions and calculations of these non-GAAP measures may differ from similarly-titled measures reported by other companies and cannot, therefore, be compared with similarly-titled measures of other companies. These non-GAAP measures should not be considered as substitutes for, or superior to, results determined in accordance with GAAP. These non-GAAP measures are reconciled to their corresponding GAAP measures elsewhere in this release or in the tables below.

Reconciliation of Diluted Earnings Per Share (GAAP) to Non-GAAP Diluted Earnings Per Share (non-GAAP)

             

Q2 2014
Actual

Q2 2013
Actual

2014
Guidance

2013 Actual
Diluted EPS (GAAP) $ 0.53 $ 0.51 $1.75 - $1.85 $ 2.67
Pension (benefit) expense 0.03 0.03 (0.34 )
Restructuring plan 0.61
Acquisition-related costs 0.03 0.06 0.11 0.21
Acquisition-related amortization of intangibles 0.11 0.07 0.47 0.29
Acquisition-related purchase price adjustments 0.01 0.01 0.02 0.06
OFAC and FCPA Investigations (1) 0.01 0.01
Japan valuation reserve release       (0.09 )
Non- GAAP Diluted EPS $ 0.68   $ 0.68   $3.00 - $3.10   $ 2.81  
 

Reconciliation of Income from Operations (GAAP) to Non-pension Operating Income (non-GAAP)

                     
$ in millions

Q2 2014
Actual

Q2 2013
Actual

2014
Guidance

2013
Actual

Q3 2014
Guidance

Q3 2013
Actual

Income from Operations (GAAP) $ 169 $ 139 $580 - $600 $ 666 $50 - $60 $ 145
Pension (benefit) expense 2 9 8 (78 ) 3 5
Restructuring plan 150 125
Acquisition-related costs 6 14 33 46 6 14
Acquisition-related amortization of intangibles 30 17 121 65 30 17
Acquisition-related purchase price adjustments 2 3 6 15 1 3
OFAC and FCPA Investigations (1) 1    

2

 

3     1
Non-pension Operating Income (non-GAAP) $ 210   $ 182   $900 - $920   $ 717   $215 - $225   $ 185
 

Reconciliation of Revenue Growth (GAAP) to Revenue Growth on a Constant Currency Basis (non-GAAP)

   

Revenue Growth %
(GAAP)

Favorable (unfavorable)
FX impact

Constant Currency Revenue Growth %
(non-GAAP)

Total Revenue 8% (1)% 9%
 

(1) Estimated expenses for 2014 will be affected by, among other things, the status and progress of these matters. There can be no assurance that the Company will not be subject to fines or other remedial measures as a result of OFAC’s, the SEC’s or the DOJ’s investigations.

Schedule A

NCR CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited) (in millions, except per share amounts)
 
For the Periods Ended June 30
Three Months     Six Months
2014       2013   2014       2013  
Revenue
Products $ 722 $ 743 $ 1,356 $ 1,410
Services 936   792   1,820   1,535  
Total Revenue 1,658 1,535 3,176 2,945
Cost of products 531 550 1,007 1,053
Cost of services 647   559   1,273   1,097  
Total gross margin 480 426 896 795
% of Revenue 29.0 % 27.8 % 28.2 % 27.0 %
Selling, general and administrative expenses 247 232 492 461
Research and development expenses 64   55   127   110  
Income from operations 169 139 277 224
% of Revenue 10.2 % 9.1 % 8.7 % 7.6 %
Interest expense (46 ) (26 ) (89 ) (47 )
Other (expense) income, net (3 ) (3 ) (10 ) (1 )
Total other (expense), net (49 ) (29 ) (99 ) (48 )
Income before income taxes and discontinued operations 120 110 178 176
% of Revenue 7.2 % 7.2 % 5.6 % 6.0 %
Income tax expense 29   23   33   25  
Income from continuing operations 91 87 145 151
Loss from discontinued operations, net of tax       (1 )
Net Income 91 87 145 150
Net income attributable to noncontrolling interests 1   1   2   3  
Net income attributable to NCR $ 90   $ 86   $ 143   $ 147  
Amounts attributable to NCR common stockholders:
Income from continuing operations $ 90 $ 86 $ 143 $ 148
Loss from discontinued operations, net of tax       (1 )
Net income $ 90   $ 86   $ 143   $ 147  
Net income per share attributable to NCR common stockholders:
Net income per common share from continuing operations
Basic $ 0.54   $ 0.52   $ 0.85   $ 0.90  
Diluted $ 0.53   $ 0.51   $ 0.84   $ 0.88  
Net income per common share
Basic $ 0.54   $ 0.52   $ 0.85   $ 0.89  
Diluted $ 0.53   $ 0.51   $ 0.84   $ 0.87  
Weighted average common shares outstanding
Basic 167.9 165.2 167.5 164.5
Diluted 170.9 168.8 171.0 168.1
 
 
 

Schedule B

NCR CORPORATION
CONSOLIDATED REVENUE AND OPERATING INCOME SUMMARY
(Unaudited) (in millions)
 
For the Periods Ended June 30
Three Months   Six Months
2014       2013       % Change 2014       2013       % Change
Revenue by segment
Financial Services $ 900 $ 782 15 % $ 1,694 $ 1,496 13 %
Retail Solutions 503 515 (2

)

%

993 1,004 (1

)

%

Hospitality 170 158 8 % 319 289 10 %
Emerging Industries 85   80   6 % 170   156   9 %
Total Revenue $ 1,658   $ 1,535   8 % $ 3,176   $ 2,945   8 %
Operating income by segment
Financial Services $ 137 $ 95 $ 240 $ 152
% of Revenue 15.2 % 12.1 % 14.2 % 10.2 %
Retail Solutions 48 49 84 90
% of Revenue 9.5 % 9.5 % 8.5 % 9.0 %
Hospitality 23 27 35 48
% of Revenue 13.5 % 17.1 % 11.0 % 16.6 %
Emerging Industries 2 11 6 21

% of Revenue

2.4 % 13.8 % 3.5 % 13.5 %
Subtotal-segment operating income $ 210   $ 182   $ 365   $ 311  
% of Revenue 12.7 % 11.9 % 11.5 % 10.6 %
Pension expense 2 9 1 16
Other adjustments (1) 39   34   87   71  
Total income from operations $ 169   $ 139   $ 277   $ 224  
 
 

(1) Other adjustments for the three months ended June 30, 2014 include $30 million of acquisition-related amortization of intangible assets, $6 million of acquisition-related costs, $2 million of acquisition-related purchase price adjustments and $1 million of legal costs related to previously disclosed OFAC and FCPA investigations; other adjustments for the three months ended June 30, 2013 include $17 million of acquisition-related amortization of intangible assets, $14 million of acquisition-related costs and $3 million of acquisition-related purchase price adjustments. Other adjustments for the six months ended June 30, 2014 include $60 million of acquisition-related amortization of intangible assets, $20 million of acquisition-related costs, $5 million of acquisition-related purchase price adjustments and $2 million of legal costs related to previously disclosed OFAC and FCPA investigations; other adjustments for the six months ended June 30, 2013 include $31 million of acquisition-related amortization of intangible assets, $30 million of acquisition-related costs, $9 million of acquisition-related purchase price adjustments and $1 million of legal costs related to previously disclosed OFAC and FCPA investigations.

Schedule C

NCR CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(in millions, except per share amounts)
         
June 30,
2014

March 31,
2014

December 31,
2013
Assets
Current assets
Cash and cash equivalents $ 483 $ 515 $ 528
Restricted cash 1,114
Accounts receivable, net 1,464 1,442 1,339
Inventories 816 820 790
Other current assets 627   608   568  
Total current assets 3,390   3,385   4,339  
Property, plant and equipment, net 402 390 352
Goodwill 2,791 2,789 1,534
Intangibles, net 994 1,024 494
Prepaid pension cost 520 495 478
Deferred income taxes 247 252 441
Other assets 505   493   470  
Total assets $ 8,849   $ 8,828   $ 8,108  
Liabilities and stockholders’ equity
Current liabilities
Short-term borrowings $ 83 $ 64 $ 34
Accounts payable 678 695 670
Payroll and benefits liabilities 188 183 191
Deferred service revenue and customer deposits 563 587 525
Other current liabilities 464   479   461  
Total current liabilities 1,976   2,008   1,881  
Long-term debt 3,840 3,885 3,320
Pension and indemnity plan liabilities 529 532 532
Postretirement and postemployment benefits liabilities 169 170 169
Income tax accruals 178 182 189
Environmental liabilities 101 111 121
Other liabilities 87   92   99  
Total liabilities 6,880   6,980   6,311  
Redeemable noncontrolling interests 15 14 14
Stockholders' equity
NCR stockholders' equity:
Preferred stock: par value $0.01 per share, 100.0 shares authorized, no shares
issued and outstanding as of June 30, 2014 and December 31, 2013,
respectively
Common stock: par value $0.01 per share, 500.0 shares authorized, 168.0,
167.8 and 166.6 shares issued and outstanding as of June 30, 2014, March 31,
2014 and December 31, 2013, respectively 2 2 2
Paid-in capital 438 426 433
Retained earnings 1,515 1,425 1,372
Accumulated other comprehensive loss (14 ) (33 ) (38 )
Total NCR stockholders' equity 1,941 1,820 1,769
Noncontrolling interests in subsidiaries 13   14   14  
Total stockholders' equity 1,954   1,834   1,783  
Total liabilities and stockholders' equity $ 8,849   $ 8,828   $ 8,108  
 
 

Schedule D

NCR CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited) (in millions)
 
For the Periods Ended June 30
Three Months     Six Months
2014       2013   2014       2013  
Operating activities
Net income $ 91 $ 87 $ 145 $ 150

Adjustments to reconcile net income to net cash (used in) provided
by operating activities:

Loss from discontinued operations 1
Depreciation and amortization 73 50 142 97
Stock-based compensation expense 9 12 19 22
Deferred income taxes 7 (1 ) 10 (10 )
Gain on sale of property, plant and equipment and other assets (1 ) (1 ) (2 ) (5 )
Changes in assets and liabilities:
Receivables (22 ) (76 ) (88 ) (67 )
Inventories 3 22 (27 ) (25 )
Current payables and accrued expenses 2 2 2 (34 )
Deferred service revenue and customer deposits (24 ) (17 ) 35 56
Employee benefit plans (38 ) (98 ) (59 ) (132 )
Other assets and liabilities (20 ) (12 ) (66 ) (64 )
Net cash provided by (used in) operating activities 80   (32 ) 111   (11 )
Investing activities
Expenditures for property, plant and equipment (34 ) (20 ) (66 ) (44 )
Proceeds from sales of property, plant and equipment 2 2
Additions to capitalized software (39 ) (24 ) (73 ) (45 )
Business acquisition, net (15 ) (1,642 ) (696 )
Changes in restricted cash 1,114
Other investing activities, net 8   1   4   6  
Net cash used in investing activities (65 ) (56 ) (663 ) (777 )
Financing activities
Tax withholding payments on behalf of employees (2 ) (2 ) (24 ) (27 )
Short term borrowings, net 3 5 9 6
Payments on term credit facilities (3 ) (17 ) (3 ) (35 )
Borrowings on term credit facilities 250
Payments on revolving credit facility (195 ) (75 ) (255 ) (495 )
Borrowings on revolving credit facility 170 160 570 725
Debt issuance costs (1 ) (1 ) (3 ) (3 )
Proceeds from employee stock plans 2 27 7 45
Other financing activities (2 )   (3 )  
Net cash (used in) provided by financing activities (28 ) 97   548   216  
Cash flows from discontinued operations
Net cash used in discontinued operations (22 ) (25 ) (38 ) (24 )
Effect of exchange rate changes on cash and cash equivalents 3   (7 ) (3 ) (13 )
Decrease in cash and cash equivalents (32 ) (23 ) (45 ) (609 )
Cash and cash equivalents at beginning of period 515   483   528   1,069  
Cash and cash equivalents at end of period $ 483   $ 460   $ 483   $ 460  

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The Internet of Things (IoT) promises to create new business models as significant as those that were inspired by the Internet and the smartphone 20 and 10 years ago. What business, social and practical implications will this phenomenon bring? That's the subject of "Monetizing the Internet of Things: Perspectives from the Front Lines," an e-book released today and available free of charge from Aria Systems, the leading innovator in recurring revenue management.
The Internet of Things will put IT to its ultimate test by creating infinite new opportunities to digitize products and services, generate and analyze new data to improve customer satisfaction, and discover new ways to gain a competitive advantage across nearly every industry. In order to help corporate business units to capitalize on the rapidly evolving IoT opportunities, IT must stand up to a new set of challenges.
There’s Big Data, then there’s really Big Data from the Internet of Things. IoT is evolving to include many data possibilities like new types of event, log and network data. The volumes are enormous, generating tens of billions of logs per day, which raise data challenges. Early IoT deployments are relying heavily on both the cloud and managed service providers to navigate these challenges. In her session at 6th Big Data Expo®, Hannah Smalltree, Director at Treasure Data, to discuss how IoT, Big Data and deployments are processing massive data volumes from wearables, utilities and other machines.
All major researchers estimate there will be tens of billions devices – computers, smartphones, tablets, and sensors – connected to the Internet by 2020. This number will continue to grow at a rapid pace for the next several decades. With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo in Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be!
P2P RTC will impact the landscape of communications, shifting from traditional telephony style communications models to OTT (Over-The-Top) cloud assisted & PaaS (Platform as a Service) communication services. The P2P shift will impact many areas of our lives, from mobile communication, human interactive web services, RTC and telephony infrastructure, user federation, security and privacy implications, business costs, and scalability. In his session at Internet of @ThingsExpo, Erik Lagerway, Co-founder of Hookflash, will walk through the shifting landscape of traditional telephone and voice services to the modern P2P RTC era of OTT cloud assisted services.
While great strides have been made relative to the video aspects of remote collaboration, audio technology has basically stagnated. Typically all audio is mixed to a single monaural stream and emanates from a single point, such as a speakerphone or a speaker associated with a video monitor. This leads to confusion and lack of understanding among participants especially regarding who is actually speaking. Spatial teleconferencing introduces the concept of acoustic spatial separation between conference participants in three dimensional space. This has been shown to significantly improve comprehension and conference efficiency.
The Internet of Things is tied together with a thin strand that is known as time. Coincidentally, at the core of nearly all data analytics is a timestamp. When working with time series data there are a few core principles that everyone should consider, especially across datasets where time is the common boundary. In his session at Internet of @ThingsExpo, Jim Scott, Director of Enterprise Strategy & Architecture at MapR Technologies, will discuss single-value, geo-spatial, and log time series data. By focusing on enterprise applications and the data center, he will use OpenTSDB as an example to explain some of these concepts including when to use different storage models.
SYS-CON Events announced today that Gridstore™, the leader in software-defined storage (SDS) purpose-built for Windows Servers and Hyper-V, will exhibit at SYS-CON's 15th International Cloud Expo®, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Gridstore™ is the leader in software-defined storage purpose built for virtualization that is designed to accelerate applications in virtualized environments. Using its patented Server-Side Virtual Controller™ Technology (SVCT) to eliminate the I/O blender effect and accelerate applications Gridstore delivers vmOptimized™ Storage that self-optimizes to each application or VM across both virtual and physical environments. Leveraging a grid architecture, Gridstore delivers the first end-to-end storage QoS to ensure the most important App or VM performance is never compromised. The storage grid, that uses Gridstore’s performance optimized nodes or capacity optimized nodes, starts with as few a...
The Transparent Cloud-computing Consortium (abbreviation: T-Cloud Consortium) will conduct research activities into changes in the computing model as a result of collaboration between "device" and "cloud" and the creation of new value and markets through organic data processing High speed and high quality networks, and dramatic improvements in computer processing capabilities, have greatly changed the nature of applications and made the storing and processing of data on the network commonplace. These technological reforms have not only changed computers and smartphones, but are also changing the data processing model for all information devices. In particular, in the area known as M2M (Machine-To-Machine), there are great expectations that information with a new type of value can be produced using a variety of devices and sensors saving/sharing data via the network and through large-scale cloud-type data processing. This consortium believes that attaching a huge number of devic...
Innodisk is a service-driven provider of industrial embedded flash and DRAM storage products and technologies, with a focus on the enterprise, industrial, aerospace, and defense industries. Innodisk is dedicated to serving their customers and business partners. Quality is vitally important when it comes to industrial embedded flash and DRAM storage products. That’s why Innodisk manufactures all of their products in their own purpose-built memory production facility. In fact, they designed and built their production center to maximize manufacturing efficiency and guarantee the highest quality of our products.
Can call centers hang up the phones for good? Intuitive Solutions did. WebRTC enabled this contact center provider to eliminate antiquated telephony and desktop phone infrastructure with a pure web-based solution, allowing them to expand beyond brick-and-mortar confines to a home-based agent model. Download Slide Deck: ▸ Here
All major researchers estimate there will be tens of billions devices - computers, smartphones, tablets, and sensors - connected to the Internet by 2020. This number will continue to grow at a rapid pace for the next several decades. Over the summer Gartner released its much anticipated annual Hype Cycle report and the big news is that Internet of Things has now replaced Big Data as the most hyped technology. Indeed, we're hearing more and more about this fascinating new technological paradigm. Every other IT news item seems to be about IoT and its implications on the future of digital business.
BSQUARE is a global leader of embedded software solutions. We enable smart connected systems at the device level and beyond that millions use every day and provide actionable data solutions for the growing Internet of Things (IoT) market. We empower our world-class customers with our products, services and solutions to achieve innovation and success. For more information, visit www.bsquare.com.
With the iCloud scandal seemingly in its past, Apple announced new iPhones, updates to iPad and MacBook as well as news on OSX Yosemite. Although consumers will have to wait to get their hands on some of that new stuff, what they can get is the latest release of iOS 8 that Apple made available for most in-market iPhones and iPads. Originally announced at WWDC (Apple’s annual developers conference) in June, iOS 8 seems to spearhead Apple’s newfound focus upon greater integration of their products into everyday tasks, cross-platform mobility and self-monitoring. Before you update your device, here is a look at some of the new features and things you may want to consider from a mobile security perspective.