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Solidly Stated by Judy Mottl (bio)

Storage insights and other bits from the Web

January 2009 Archives

GoDaddy goes one Super Bowl ad more

The Web hosting site known for its provactive and lurid Super Bowl ads is now running two commercials during the biggest annual sporting event Sunday.

Initially GoDaddy planned to run one of two ads it had created based on a online vote that was held this month.

But according to a PR email late Friday GoDaddy bought up one of NBC's remaining slots at the last minute to showcase both ads, which feature sexy race car driver Danica Patrick in two different story lines as InternetNews.com reported this week.

The first, called "Shower," features Patrick in a shower with another woman as three college students control the women's movements from a computer keyboard.

The second, called "Baseball," spoofs the industry's recent steroids scandal using female anatomy as a visual aid.

And, of course, GoDaddy will feature uncensored and uncut versions of both ads on its Web site.

What's not known is whether the online voting on which ad to feature was too close to call.

Or if NBC, given it obviously hadn't sold out its ad slots, lowered its original $3 million for 30 second rate card cost.

GoDaddy had said its Super Bowl advertising effort was running about $2 million this year, the same as last year.

So maybe GoDaddy just saw a great opportunity to get more bang for the buck from an ad event that has paid off "in spades," as one VP said this week.

Whichever it was, a cheaper ad rate or too close to call voting, GoDaddy just keeps going where few other Super Bowl advertisers tread.

1 million Storms in the market

Verizon Wireless confirmed today that it has sold 1 million BlackBerry Storm handsets to date since the newest Research in Motion device debut on November 21, 2008 -- just a little over two months ago.

The one million mark is a valuable assessment as the Storm was hyped as the top iPhone competitor.

Not a bad sales pace as earlier rumored predictions had the figure at 500,000 or so.

But nowhere near the pace Apple has set with its iPhone.

Apple sold 4.4 million iPhones in its first fiscal quarter ended December 27, 2008, for a total of 13.7 million units. That put it well past the 10 million unit goal in 2008 that Apple had set for it.

RIM and Verizon Wireless have their work cut out if they expect to catch up.

Going forward Morgan Stanley expects 27 million iPhones to be sold 2009.

The President and his Blackberry

Seriously, what more could Research in Motion, the maker of the Blackberry, ask for in terms of prestige these days given newly-elected President Barack Obama is a Crackberry addict?

Best of all the President, who reportedly was never seen without his BlackBerry in hand during his campaign, doesn't have to give up his treasured device after rumors circulated that the Secret Service might take it away citing security issues.

RIM couldn't ask for better media coverage, which is also providing priceless advertising and marketing gold.

The handheld, already viewed as the most secure enterprise device, is now 'the' most secure device one can have.

Clearly he won't be using any GPS location-based services to find the best pizzeria or that new lacrosse stick for his girls. But then again he has the Secret Service and a slew of staff to make that happen.

I think it's an amazing statement of US technology and indicates that this presidency, unlike many before it, realizes the value of technology and mobile communications.

Now, as many have noted, Uncle Sam just has to make it a policy priority going forward.

Moto Cuts 4,000 More Jobs

Motorola announced even bigger workforce cuts this afternoon -- an additional 4,000 in layoffs for the beleaguered handset maker.

In a press release issued just before 5pm today the company stated there will be approximately 4,000 additional workforce reductions, with 3,000 within in the Mobile Devices business. The other 1,000 positions are associated with corporate functions and other business units.

Today's workforce reductions, plus other incremental cost-reduction initiatives, including those announced on December 17, 2008, are expected to result in additional annual cost savings of approximately $700 million in 2009, according to the release.

Total cost savings from recent actions now expected to be approximately $1.5 billion in 2009.

The savings from these actions, together with the $800 million of savings from other actions announced during the fourth quarter of 2008 are expected to result in aggregate cost savings of $1.5 billion for the Company in 2009.

"The actions we are taking today in our Mobile Devices business will allow us to further reduce our cost structure and positions us for improved financial performance in 2009," said Sanjay Jha, co-chief executive officer of Motorola, in the released statement. He said the Mobile Devices business expects to recognize annual cost savings of approximately $1.2 billion in 2009.

Motorola's release states that during the fourth quarter its Mobile Devices unit shipped approximately 19 million handsets -- and that sales were hurt by continued weakness in end consumer demand and customer inventory reductions.

Motorola will hold its next financial earnings call on February 3.

Obama & his Blackberry: A few words say it all

President-elect Barack Obama faces a conundrum: He likely has to relinquish his coveted BlackBerry as part of his taking office on January 20.

But as recently as last week he made it clear, once again, he's not happy about it.

One of the most enterprising, and humorous takes on his predicament can be found over at the New York Daily News. The New York paper asked some advertising and marketing gurus to put together ad campaigns based on the dilemma and the results are hilarious.

One favorite of mine is a front-page declaration that Obama has decided to forgo the presidency in order to keep his smartphone.

"Nation shocked. Blackberry Owners Not" screams the secondary tag line.

One pictorial is a text message conversation between Obama and his VP, Joe Biden, which talks about the impending BlackBerry removal action.

Another image relates how kicking the Blackberry habit is harder than giving up smokes.

And finally there's one that scan the worklife and personal life of the soon-to-be President and denotes the communication ease a Blackberry affords when discussing national priorities: An email from Michelle Obama telling her husband the kids forgot their homework. Again.

Enterprising? Yes. Creative? Yes. It's a Crackberry devotion pictorial not to miss.

EMC's cutbacks: A bit more to the story

Storage titan EMC announced layoffs last week, citing cost-efficiency as the primary reason.

What it didn't announce, as clearly, was that CEO Joe Tucci and senior executives are taking a pay cut and also foregoing bonuses for 2009.

Oh, and one more thing -- EMC is freezing employee pay as well with no salary or bonus increases coming in the near future.

This was all confirmed this morning by an EMC spokesperson.

The problem I have is that neither economic move was mentioned specifically in any release I saw or read last week in writing about the layoffs. It's also not in an SEC document, as yet, as that doesn't have to be filed until the company's year end.

A 7 percent workforce cut, in these economic times, isn't mindblowing. The macroeconomics are finally hitting the storage sector - about a year after hurting lots of other technology segments. Everyone is slashing payroll -- heck even Microsoft was rumored to be laying off by the end of 2008.

And trying to reduce costs, trim operations, restructure an organization that is merger-manic (EMC had something like 21 acquisitions in the past few years) is just smart business.

But senior level pay cuts?

A CEO taking a salary reduction and kissing goodbye a bonus?

That's exactly what Motorola announced before the holidays remember? And we all know that isn't about just shoring up the financials.

So EMC's similar moves seem to be a little bit more than just cost-efficiency to me, though I am the first (as my editors will attest) to acknowledge I'm no financial wizard.

I asked for specifics on the senior level pay cuts and bonus loss. No numbers forthcoming. I asked what the no-raise for 2009 will save. No answer.

What I got was Tucci and his executive staff are "leading" from the front when it comes to financial moves. Maybe the storage sector is getting hit harder than many thought. We'll find out soon enough.