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The Week in Review

Gateway Revs its Server Ambitions
Gateway, which hasn't exactly been a runaway success at selling servers, in fact the company's second-biggest shareholder claims they're subsidized at the expense of its retail business, is going to try again, hoping to compete against both Dell and HP.

It's introduced three new Intel Woodcrest boxes - a dual-core 1U, a rack-mounted 2U and a high-performance tower - and it's thinking about adding AMD units. If it does, they'd be the first time Gateway ever used Opteron in a server. IBM Global Services is going to support the new machines.

What's new about the servers is Gateway's web-based Lights Out (GLO) system management, which it claims is better than rivals', as well as integrated RAID, the ability to mix SAS and SATAII drives in the same system, optional redundant hot swap fans and power supplies and a new tool-less/color-coded industrial design.

Gateway has switched ODMs; it's now using Inventec in Taiwan, which also builds HP servers. They'll be assembled at the company's new Gateway Configuration Center in Tennessee, which it says will let better serve its professional customers, both SMBs and government.

The company imagines the servers being used for Oracle and Microsoft databases, Exchange, VMware virtualization and as web or file and print servers.

The E-9520T tower starts at $2,199, the E-9425R 1U at $1,849, and the E-9525R 2U at $1,899. Availability starts in mid- to late October.

Red Hat Earnings Nose Dive; Stock Trashed
Red Hat earnings dove 34% year-over-year to $11 million or five cents a share in its second fiscal quarter reported Tuesday, down from $16.7 million or nine cents a share. In after-hours trading the stock took close to a 15% hit. The next morning its stock price was down over 23%. It inched up slightly Thursday.

Investors were unhappy with the miss in billings and cash flow, both down roughly $2 million to $113 million and $43.9 million, respectively, although revenues were $99.7 million, up 52% year-over-year or up 19% sequentially. Wall Street suspected that the Red Hat engine, rated by some the fastest-growing IT outfit, was decelerating, complaining that its trailing indicators were up but its leading indicators look down.

Red Hat claimed that it was a one-shot dip and that bookings were up sequentially - how much exactly it didn't say. It said the bookings number was off because the company was distracted by the integration of four acquisitions including JBoss - salesmen were taken out of the field to be trained in JBoss wares. Everybody, it said, got "some training," organizational changes in Asia-Pacific including a change in leadership also contributed as did a higher proportion of three-year deals whose first-year revenues were all that Red Hat could recognize.

Merger-related expenses didn't help and Q3 projections were a bit skimpy. Opex was up 75% year-over-year to $73.8 million.

Anyway, the company said that differences in the accounting treatment for taxes and stock compensation expenses between fiscal 2006 and 2007 made GAAP earnings this year and last not directly comparable. It prefers comparing non-GAAP results, which look better. Its non-GAAP income this time through was $23.7 million, or 11 cents a share, compared to last Q2 when it was $17.7 million, or nine cents a share.

With its acquisition complete, JBoss contributed $7 million to revenues, which was at the top of Red Hat's previously provided guidance. Otherwise, subscription revenue was $84.9 million, up 56% year-over-year and up 19% sequentially. Red Hat said Q2 was the sixth consecutive quarter that it added more than 10,000 new customers and mentioned that it was summertime.

The company noted that Linux OEM revenues grew 90% year-over-year, a number it figures "stands in stark contrast to the reported weakness experienced by server suppliers this past quarter" and a testimonial to the drawing power of Linux.

Be that as it may, Red Hat CEO Matthew Szulik complained that CIOs have to be constantly resold - he called it educated - on the merits of open source.

At the end of the August quarter, Red Hat's total deferred revenue balance stood at $284.1 million, up 12% sequentially. It has a billion dollars in the bank.

Red Hat said its Q2 gross margin was 84%, up two points year-over-year.

Red Hat is projecting Q3 earnings of 12 cents-14 cents (five-six cents GAAP) on revenue between $103.5 million and $105 million and is sticking with its initial annual forecast of $210 million-$215 million. It reiterated its Q3 JBoss projection of $22 million-$27 million in revenue. Q3 operating expenses are expected to be $1 million-$2 million more than Q2.

Red Hat has yet to get JBoss on a subscription basis and has only just introduced a Red Hat Linux-JBoss stack.

Red Hat found itself selling more direct than through the channel in Q2, a ratio of 46% to 54% compared to Q1 when it broke down 39% to 61%, which was one of the reasons it was anxious to get the Linux-JBoss stack out to resellers.

Teradata Moves its Data Warehouse to Linux
Teradata has shipped an enhanced version of its Teradata database on Novell's 64-bit SUSE Linux Enterprise. It's available globally for enterprise-class data warehouses. It has the same functionality as Teradata on Windows or NCR's own Unix operating system, Unix MP-RAS. It will run on Teradata hardware.

Teradata says it already offers tools and utilities products that provide the load and access connectivity to Teradata user applications on both SUSE Linux Enterprise and Red Hat Linux.

Mandriva Releases Corporate Server 4.0
Mandriva, the other Linux distribution, has launched Corporate Server 4.0 and in an effort to appeal to everybody is offering it with three virtualization technologies: Xen, VMware and SWSoft's OpenVZ. It's the first to do that. OpenVZ is integrated into the Madriva kernel

The company says it has also made it easy to connect to popular directories like LDAP and Active Directory. It has a web-based installation assistant called FIBRIC that can configure specialized servers such as mail servers or file-and-print servers in under 10 minutes.

Voltaire Invents GridVision Enterprise
Voltaire, the Infiniband house, is bulking up its software side with what it calls a first-of-a-kind package called GridVision Enterprise, meant for managing and automating grids. It's an extension of the software Voltaire already supplies.

The stuff won't be out until December. Voltaire is announcing it now to get a running start with the customer class. It expects its OEMs, outfits like Sun, IBM and HP, to round up beta sites to test the software.

The company says it automates the repetitive IT tasks associated with end-to-end network, server and storage provisioning, cutting the scut work from days to seconds.

The widgetry leverages the I/O and network virtualization technology embedded in Voltaire's switches and maps the relationships between applications requirements and the physical or virtual data center environment.

Gridvision involves an abstracted object model, graphical UI and an open Web Services API and will integrate with server and storage virtualization technologies such as VMware, FalconStor and Xen as well as provisioning and scheduling tools.

Voltaire says this approach improves the efficiency of resources and cuts operating costs. It says its object is to simplify an increasingly complicated terrain and unify the environment.

Initially Gridvision will be limited to grid fabrics built with Voltaire's switches as the interconnect. It intends to extend it to rivals such as Cisco with the next rev next year.

List price will be $249 per node.

Oracle Updates Berkeley DB
Oracle Wednesday trotted out Berkeley DB Release 4.5, its updated version of the open source widgetry it got when it acquired Sleepycat Software a while back, just about the time that Oracle CEO Larry Ellison started threatening to move into the Linux market with a Linux distribution of his own and was also trying to acquire Zend and JBoss.

Berkeley DB is part of Oracle's attempt to own the embedded database marketplace, which it also serves with its TimesTen acquisition as well as Oracle Lite and the big Oracle database and Oracle Application Server.

Unlike Oracle or open source databases like MySQL and Postgres, Berkeley is not relational, but can function as a transactional storage engine within other people's high-performance applications or simply as part of devices and equipment.

IDC has predicted that by 2012 17 billion devices will be connected to the Internet. Forrester, on the other hand, estimates the current open source database market to be worth $400 million, which includes support, services, and licenses, and forecasts that it will reach $1 billion by the end of 2008.

The new Berkeley release includes features that reportedly improve performance, availability and ease-of-use for developers of mission-critical systems. It now supports multi-version concurrency control, non-stop upgrades for replicated environments and a pre-built replication framework to simplify development of highly available applications.

Oracle Berkeley DB Release 4.5 is available under a dual license. Its no-cost open source license permits redistribution if the application using Oracle Berkeley DB is open source. A commercial license is available for redistribution of proprietary applications. Pricing starts at $750 per CPU for enterprices using the thing internally.

For downloads see http://www.oracle.com/technology/products/berkeley-db.

Eric Raymond Lends Support to Freespire
Linspire says Eric Raymond has joined its Freespire leadership board. Raymond is the guy who basically invented open source by casting it as different from the Free Software movement and giving commercial outfits a reason to play, and somebody Linspire needs to explain Freespire's mixing of open source and the proprietary codecs, drivers and applications it otherwise lacks in order to push Linux on to the desktop faster.

According to Linspire Raymond has recently taken to the stump about the "necessary compromise" Linux must make with key proprietary technologies for which there are no open source alternatives.

Raymond is also quoted as saying that Linux needs to attract enough end users to make ISVs sit up and take notice. "There simply aren't enough Linux users today to put much pressure on hardware and software manufacturers," he said in a canned statement.

Just What Red Hat Needs - Novell Support
Hoping to exploit the fact that it's got Xen virtualization in its Linux and Red Hat doesn't, Novell is proposing to support Red Hat Enterprise Linux 4 running on SUSE Linux Enterprise Server 10 so Red Hat customers can migrate to Novell service and support while still running Red Hat in a virtualized environment.

Novell is offering Level 3 support and says that means that it will support the Xen hypervisor if a customer uncovers an issue running a virtual instance of Red Hat and that issue isn't reproducible in a native or non-virtualized environment. Intel is promising concomitant support for VT hardware.

Novell says a pilot program will start in late October with several large enterprise customers and should be generally available by the end of the year.

Red Hat is expected to have Xen on board in Q1.

Jaluna Rebrands To Exploit Virtualization
Jaluna is now on its third incarnation.

Once upon a time it was called ChorusOS. Then Sun Microsystems bought it and then sold it. It changed its name to Jaluna. Now it's changed its name again to VirtualLogix (VLX) to exploit its position in real-time virtualization. Virtualization is only beginning to be used in the embedded market.

The company is going to keep peddling to the telecom sector and sell JalunaOS, the hard real-time embedded operating system it's worked on all these years, through scalable vertical market solutions.

It's going to keep chasing ARM-based cell phones with what it now calls VLX for Mobile Handsets, which supports both Windows and Linux.

The underlying JalunaOS, now at a new rev 3.0, includes fault tolerance and malware-protecting security that defends core phone services from potential corruptions in an open OS such as Linux, making mobile phones more reliable.

VirtualLogix is also going to go after the network infrastructure with a blade product called VLX for Network Infrastructure that will allow for consolidation.

VirtualLogix will help network infrastructure customers migrate off Intel's single-core chips and let them virtualize. Concentrating on its hypervisor, it will let other people's embedded and unmodified operating systems exploit Intel's VT-enabled x86 multi-core chips, something that would otherwise take them a year to do.

The company will also be chasing set-top boxes, videophones and other low-cost video devices with VLX for Digital Multimedia, which will let vendors support both TI's DSP operating system and standard Linux on the same chip without any additional application processor.

The company, which has historically been French, has reincorporated in Delaware and is moving its US headquarters from San Jose to Sunnyvale, California. A sales operation has been added to its French development unit and it has reinforced its Japanese team with distributors in China and Korea.

Intel Developing Another Non-x86 Chip
Aside from the pricey ill-fated Itanium, Intel is developing another non-x86 chip according to what it said at its Developer Forum this week.

Seems the world is going to need silicon capable of one trillion floating-point operations-per-second (teraFLOPS) if what Intel called "mega data centers" of more than a million servers are ever going to let people access personal data, media and applications from any high-performance device so they can play photo-realistic games, share real-time video and do multimedia data mining.

So Intel has been working on prototype "tera-scale" chip, the world's first programmable teraFLOP processor, according to Intel senior fellow and CTO Justin Rattner.

He said the thing has 80 simple cores each running at a clock rate of 3.1GHz and is meant "to test interconnect strategies for rapidly moving terabytes of data from core to core and between cores and memory."

For perspective, recall that the first teraFLOP supercomputer was created 11 years ago out of nearly 10,000 Pentium Pro processors and occupied about 2,000 square feet. The tera-scale chip with its 80 floating-point cores on a single die is just 300mm square.

What Intel is aiming for is something that offers teraOPS of performance, terabytes-per-second of memory bandwidth, and terabits-per-second of I/O capacity. Commercial application is years away. Meantime, Intel will be looking for industry support.

Unlike existing chip designs where hundreds of millions of transistors are uniquely arranged, this chip's design consists of 80 tiles laid out in an 8x10 block array. Each tile includes a small core, or compute element, with a simple instruction set for processing floating-point data, but it's not Intel Architecture compatible. The tile includes a router connecting the core to an on-chip network that links all the cores to each other and gives them access to memory.

The design includes a 20MB SRAM memory chip stacked on and bonded to the processor die. Intel says stacking the die makes possible thousands of interconnects and provides more than a terabyte-per-second of bandwidth between memory and the cores.

And it seems that with that recently announced Hybrid Silicon Laser chip that Intel developed in collaboration with researchers at University of California, Santa Barbara dozens or maybe hundreds of Hybrid Silicon Lasers could be integrated with other silicon photonic components onto a single silicon chip. Intel says that could lead to a terabit-per-second optical link capable of speeding terabytes of data between chips inside computers, between PCs, and between servers inside data centers.

See www.intel.com/go/terascale.

AMD Good for 40%: Merrill
Merrill Lynch thinks Intel and its Woodcrest/Blackford widgets will have "only minimal competitive impact" and that AMD could own 40% of the server market by the end of next year. Merrill analyst Joe Osha says he's sticking by his prediction that Dell will only buy 1.5 million-2 million chips off of AMD by the end of the year but that Dell could be throwing AMD 30% of its business by 2008. That would be something like 14 million-15 million units a year. He also doesn't think AMD's acquisition of ATI and its graphics processor will come to anything.

Intel Licenses Bus
Intel, in a move reminiscent of AMD's Torrenza scheme, has taken to licensing its front-side bus. Initial licensees include Xilinx and Altera, who will adorn the thing with FPGAs so the chip is good for specialty applications.

Trouble in GPL Land
Linux creator Linux Torvalds, who doesn't much care for the proposed GPL 3 rewrite, particularly its position on DRM, organized a poll in which 28 out of 29 of the more prolific Linux kernel contributors came out against the update, indicating that Torvalds was not, as he put it, "just the odd man out." A bunch of them then published a position paper against the current draft called "The Dangers and problems with GPLv3," suggesting that it could balkanize Linux into GPL 2 and GPL 3 versions, potentially inflicting damage on the Linux ecosystem and jeopardizing the survival of open source. Feeling is running high enough against GPL 3 that it may be stillborn, which would be quite a comeuppance to Richard Stallman and Eban Moglan of the Free Software Foundation who wrote the darn thing.

Hey, Has Dell Discovered Engineering?
Dell, a company not much given to R&D, is going to hire itself 500 engineers in Austin as part of its revitalization plans.

Are Patti, Jay & Tom Gonna Rumble?
We heard ousted HP chairman Patricia Dunn's lawyer James Bosnahan say on television that she would not "go gentle into that good night" and then we heard the commentator remark a bit later that there was some mumble about her maybe suing her two fellow ex-directors Jay Keyworth and Tom Perkins, It's all very personal with the three of them. Dunn is also contesting the accuracy of HP's rendition of the basic facts of the "Grand Scandale" that it memorialized in an 8K that it filed Wednesday in the form of detailed timeline. Bosnahan sent a copy of letter he sent to HP's new counsel around to the press with his corrections. He's asking HP to correct the 8K.

Itanium Groupies Make Room for Transitive
Transitive Corporation, the outfit working with Intel to get Sparc/Solaris apps up and running on Linux/Itanium without porting or otherwise breaking a sweat, has joined the year-old Itanium Solutions Alliance to stir up business. The Itanium Solutions Alliance, in turn, has dreamed up the ISV Platform Expansion Program to accommodate Transitive. Pre-Transitive, there are a reported 10,000 applications running on Itanium.

Carly's Smiling
Betcha ousted HP CEO Carly Fiorina is smiling like Alice-in-Wonderland's Cheshire Cat into her make-up mirror these days. Her enemies on the HP board are scattered or confounded, the suit of armor her replacement's been wearing isn't quite as shiny as it was, and she's got a book coming out right in the middle of all the HP tittle-tattle. It's called "Tough Choices" and, with HP dropping shoes everyday, the publisher has reportedly been rethinking how many copies to print. Carly is supposed to start plugging the book on "60 Minutes" on Sunday, October 8, where she'll doubtless be asked about boardroom leaks and pretexting. As part of its first leaks investigation, HP got Fiorina's own home phone records from December 2004 - a month before the first leak - to mid-April 2005 - two months after she left the company. HP must have thought she was leaking to the press about her replacement.

First International AJAXWorld Conference Draws Major Sponsors, More Than 800 Delegates Signed Up
The first international AJAXWorld Conference & Expo is sponsored by Adobe, Amazon, Apress, Backbase, ComponentArt, Cynergy Systems, Google, Helmi Technologies, IBM, ICEsoft, ILOG, Infragistics, JackBe, Laszlo Systems, Nexaweb, OASIS, Parasoft, Sun Microsystems, telerik, TIBCO, U7 Web Technologies, Visible Measures, Zapatec; including media sponsors AJAX Matters, AJAXWorld Magazine, BZ Media, ColdFusion Developer's Journal, DevtownStation.com, Eclipse Developer's Journal, Eclipse Review, Enterprise Open Source Magazine, Integration Developer News, ITtoolbox.com, Java Developer's Journal, LinuxWorld.com, Methods & Tools, Network World, Open Enterprise Trends, Sarbanes-Oxley Compliance Journal, SD Times, Software Test & Performance, SOA Web Services Journal, SYS-CON.TV, Web 2.0 Journal, and Web Developer's & Designer's Journal.

--Copyright Client/Server News

About Java News Desk
JDJ News Desk monitors the world of Java to present IT professionals with updates on technology advances, business trends, new products and standards in the Java and i-technology space.

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Betcha ousted HP CEO Carly Fiorina is smiling like Alice-in-Wonderland's Cheshire Cat into her make-up mirror these days. Her enemies on the HP board are scattered or confounded, the suit of armor her replacement's been wearing isn't quite as shiny as it was, and she's got a book coming out right in the middle of all the HP tittle-tattle. It's called 'Tough Choices' and, with HP dropping shoes everyday, the publisher has reportedly been rethinking how many copies to print. Carly is supposed to start plugging the book on '60 Minutes' on Sunday, October 8, where she'll doubtless be asked about boardroom leaks and pretexting. As part of its first leaks investigation, HP got Fiorina's own home phone records from December 2004 - a month before the first leak - to mid-April 2005 - two months after she left the company. HP must have thought she was leaking to the press about her replacement.

Betcha ousted HP CEO Carly Fiorina is smiling like Alice-in-Wonderland's Cheshire Cat into her make-up mirror these days. Her enemies on the HP board are scattered or confounded, the suit of armor her replacement's been wearing isn't quite as shiny as it was, and she's got a book coming out right in the middle of all the HP tittle-tattle. It's called 'Tough Choices' and, with HP dropping shoes everyday, the publisher has reportedly been rethinking how many copies to print. Carly is supposed to start plugging the book on '60 Minutes' on Sunday, October 8, where she'll doubtless be asked about boardroom leaks and pretexting. As part of its first leaks investigation, HP got Fiorina's own home phone records from December 2004 - a month before the first leak - to mid-April 2005 - two months after she left the company. HP must have thought she was leaking to the press about her replacement.

Betcha ousted HP CEO Carly Fiorina is smiling like Alice-in-Wonderland's Cheshire Cat into her make-up mirror these days. Her enemies on the HP board are scattered or confounded, the suit of armor her replacement's been wearing isn't quite as shiny as it was, and she's got a book coming out right in the middle of all the HP tittle-tattle. It's called 'Tough Choices' and, with HP dropping shoes everyday, the publisher has reportedly been rethinking how many copies to print. Carly is supposed to start plugging the book on '60 Minutes' on Sunday, October 8, where she'll doubtless be asked about boardroom leaks and pretexting. As part of its first leaks investigation, HP got Fiorina's own home phone records from December 2004 - a month before the first leak - to mid-April 2005 - two months after she left the company. HP must have thought she was leaking to the press about her replacement.


Your Feedback
SYS-CON Australia News Desk wrote: Betcha ousted HP CEO Carly Fiorina is smiling like Alice-in-Wonderland's Cheshire Cat into her make-up mirror these days. Her enemies on the HP board are scattered or confounded, the suit of armor her replacement's been wearing isn't quite as shiny as it was, and she's got a book coming out right in the middle of all the HP tittle-tattle. It's called 'Tough Choices' and, with HP dropping shoes everyday, the publisher has reportedly been rethinking how many copies to print. Carly is supposed to start plugging the book on '60 Minutes' on Sunday, October 8, where she'll doubtless be asked about boardroom leaks and pretexting. As part of its first leaks investigation, HP got Fiorina's own home phone records from December 2004 - a month before the first leak - to mid-April 2005 - two months after she left the company. HP must have thought she was leaking to the press about her replacement.
AJAXWorld News Desk wrote: Betcha ousted HP CEO Carly Fiorina is smiling like Alice-in-Wonderland's Cheshire Cat into her make-up mirror these days. Her enemies on the HP board are scattered or confounded, the suit of armor her replacement's been wearing isn't quite as shiny as it was, and she's got a book coming out right in the middle of all the HP tittle-tattle. It's called 'Tough Choices' and, with HP dropping shoes everyday, the publisher has reportedly been rethinking how many copies to print. Carly is supposed to start plugging the book on '60 Minutes' on Sunday, October 8, where she'll doubtless be asked about boardroom leaks and pretexting. As part of its first leaks investigation, HP got Fiorina's own home phone records from December 2004 - a month before the first leak - to mid-April 2005 - two months after she left the company. HP must have thought she was leaking to the press about her replacement.
JDJ News Desk wrote: Betcha ousted HP CEO Carly Fiorina is smiling like Alice-in-Wonderland's Cheshire Cat into her make-up mirror these days. Her enemies on the HP board are scattered or confounded, the suit of armor her replacement's been wearing isn't quite as shiny as it was, and she's got a book coming out right in the middle of all the HP tittle-tattle. It's called 'Tough Choices' and, with HP dropping shoes everyday, the publisher has reportedly been rethinking how many copies to print. Carly is supposed to start plugging the book on '60 Minutes' on Sunday, October 8, where she'll doubtless be asked about boardroom leaks and pretexting. As part of its first leaks investigation, HP got Fiorina's own home phone records from December 2004 - a month before the first leak - to mid-April 2005 - two months after she left the company. HP must have thought she was leaking to the press about her replacement.
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