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Other Reality of the Apple Dividend & Buy Back Announcement

March 19, 2012 14 Comments

So the big Apple divident announcement hit this morning. And all the news media (including a few financial sites I’ve looked at) seem to be focusing on the wrong numbers.

As the first sentence in their announcement states: spending $45 Billion (of domestic cash…2 key words there) over 3 Years; averaging out to $3.75B per quarter. $10B of that will be to repurchase shares to negate employee stock grants (aka, dilution of public stock); averaging $.8B ($833M specifically) per quarter. If you take the repurchase program out of the equation (it’s just negating new stocking coming into the open market that’s pay for all the Apple employee’s new cars, home remodels, and kid’s college savings programs) you have just under $3 Billion of Apple’s quarterly cash hoard being returned to investors.

Now the part not being focused on in most media circles: In their 1st Quarter of FY2012 Apple Generated $16B in cash. That number is expected to grow each quarter with a FY2012 total expected to be $75B. So the dividend pay out will only slow the rate of Apple’s cash growth (in FY12Q1 they would have generated $13B instead of $16B; the FY2012 total slips from expected $75B to an estimated $63B).  Most of Apple’s competitors still wish they could generate that much revenue, not just free cash.

The other small caveat being missed. The payouts come from domestic cash. Of Apple’s near $100B cash balance, about $64B of that is overseas. Not taxed by the US Government.

So the Dividend payout is great for investors as our growth stock now is also an income stock as well. It’s great for Apple because it attracts a new class of institutional investment money (income seeking) but it also allows Apple to continue to shift cash into overseas accounts. I’m not a corporate tax expert but it would be nice if a news agency would focus on the impact of this small tid bit.

(Disclaimer: I’m an Apple stockholder)

Filed Under: Tech Industry Tagged With: Apple

Energy Efficient Lighting OpEx Experiment

February 19, 2012 15 Comments

Over the past few months I’ve been changing over the most frequently used lights in my house with new energy efficient LED light bulbs.  Many of the new bulbs have highly accurate color temperatures (important for consistent lighting over time…especially when illuminating photographs!) and have dramatically come down in price over the past few months.

Before I started this conversion process, I ran some lighting OpEx calculations to see how long it would take me to recover the higher cost of the LED lights.  To my surprise, and thanks to my higher California cost of electricity, these new bulbs don’t take very long to pay for themselves. I recently shared the Excel spreadsheet I create to calculate the OpEx savings with a photographer who is opening up a gallery and invested in LED lights.  I figured if he found it valuable others might as well, so I’m sharing it publicly here.

To use the calculator:

  1. Download the Lighting Opex Calc document
  2. Change the Average cost per Kilowatt Hour (yellow field) to your cost for electricity (industry calculations typically use $.11/KWH, I suspect most people’s are slightly higher like mine)
  3. Update the rows for each similar wattage light on each room’s switch (add more rows and fill down the OpEx Costs fields as needed)
  4. See how many Months/Years it will take to break even on the cost of the new light bulbs.

If you find this calculator valuable, drop me a line and let me know.

Some leasons learned to date:

  • Try LED bulbs purchased locally from stores with good return policies; when paying $30-$60 per bulb, you want to make sure it is exactly what you need now and for the next 10+ years, if it’s not perfect, take it back. These bulbs cost too much for them not to be exactly what you want. LED bulb manufacturers should also learn to package their bulbs in resealable packages for this specific reason…
  • I’ve had good luck with bulbs from Home Depot and Lowes…
  • If you have dimmer switches, your LED bulbs will be brighter than you expect at the lowest setting, something you have to get used to. And I’ve heard rumors of dimmer switches with more than 4-5 bulbs sometimes having problems where the bulbs flicker.
  • If you have digital dimmers designed for halogen lights (to not produce a hum), they won’t work with LED bulbs.

 

Filed Under: Technology Ramblings

VMworld 2011 Recap

September 9, 2011 13 Comments

 

VMworld 2011 Banner

I was a bit bummed that things didn’t work out for me to attend VMworld this year, but that’s what happens when you have two immovable competing priorities — family visiting over the holidays against industry events.  However, I was able to peel myself away from some client licensing issues, travel planning, and evening house scraping/painting to put together a racap newsletter for my clients. Reposting general details here on the blog as well (and yes, that pun was intended).

Many thanks go out to a few peers of mine from VMware who helped me pull this information together and proof read the final copy!

~~~~~

For most, Summer is now officially over.  The kids are back in school and VMworld Las Vegas is history.  

But in this case, what happened in Vegas isn’t staying in Vegas…we wanted to provide a quick summary of key announcements from and about the show.  If you weren’t able to attend this year, I encourage you to mark your calendars for next year:  VMworld 2012 is scheduled for August 27 – 30 in San Francisco, CA  (we’ve officially out grown Vegas!).

VMworld 2011 Overview

Even with Hurricane Irene trying to dampen our spirits, VMworld attracted a record number of 19,000+ customers, partners, press and analysts, and 250 sponsors and exhibitors signifying major interest from the IT industry in cloud computing and the next generation of IT. There are now over 86,000 VMware Certified Professionals in 146 countries and over 800,000 vSphere administrators worldwide.

The VMworld Hands on Labs again set records.  This year the labs were run on a geographically distributed Public Cloud hosted in Switch (US-West), Terremark (US-East) and in COLT (Europe-East), all powered by vSphere 5.0 and vCloud Director 1.5.  Some quick lab stats:

  • 480 lab seats were avaialble for a total of 50 hours (24,000 lab seat hours)
  • VMworld First: labs included partner labs from Cisco, EMC and NetApp
  • Total of 13,415 labs were taken
  • Total of 148,138 virtual machines were deployed (that’s 1.215 VMs/second!)
  • 3 attendees finished all 27 Hands on Labs!
  • Best of all…VMworld Hands On Labs will be going public in 2012…

Project Octopus will leverage data sync technology from VMware Zimbra and Mozy to enable enterprise-grade collaboration and information/data sharing. Additionally, Project Octopus will offer easy integration with VMware Horizon, VMware View and Project AppBlast to create a secure enterprise cloud service. These two projects promise to dramatically simplify the access and sharing of information across people and mobile devices, contributing to the Connected Enterprise.

Project AppBlast will provide the universal delivery of any application, including Windows-based applications, to any device supporting HTML5, enabling instant remote access to applications without the heavy footprint of the underlying operating system.

Horizon Mobile (formally MVP) to deliver virtual desktops to mobile devices and enable a new class of dual persona mobile devices. Mobile Virtualization for the Enterprise.

Want to see what you missed?

  • The General Sessions recordings are available at VMworld.com.
  • VMworld TV has overview videos from each day and a bunch of interviews up on YouTube
  • SiliconANGLE has a collection of interview videos they conducted at VMworld that is well worth reviewing

Below are key announcements in each of the VMware Focus Areas with links to the full press release for each announcement.

End User Computing 

VMware Announces New Products and Services for the Post-PC Era

VMware View 5 to deliver new levels of innovation and simplicity with protocol enhancements, advanced 3D graphics, scalable unified communications and integrated persona management.

VMware Horizon extends benefits of cloud-based application management to virtualized Windows applications and connected mobile workspaces.

Symantec and VMware Announce Strategic Partnership to Deliver Desktop-as-a-Service Solutions

VMware Announces New Strategic Partnership with Samsung to Virtualize Mobile Devices

VMware and Mitel to Bring Unified Communications and Collaboration to Desktop Virtualization

Socialcast Delivers Secure, Real-Time Collaboration to the Extended Enterprise

 

Application Platform

VMware Introduces New Platform for Enterprise Database as a Service

New VMware vFabric Data Director Will Help Control Database Sprawl, Accelerate Application Development with Self-Service Database Operations and Improve Data Center Efficiency

VMware Delivers Micro Cloud Foundry, Bringing the Industry’s First Open PaaS   Directly to any Developers’ Mac or PC

Free, downloadable PaaS lets developers build cloud applications locally and explore the latest developer technologies.

The Micro Cloud Foundry beta as a free download is immediately available.

Cloud Infrastructure

New VMware vCloud Offerings Accelerate Journey to the Enterprise Hybrid Cloud

vCloud Director and vCloud Connector 1.5 Simplify Access and Management

VMware vCenter Site Recovery Manager 5 to Power Disaster Recovery to the Cloud Services

VMware and Cisco Collaborate on Cloud Innovation

Expanding on a strategic relationship and engineering collaboration that spans more than four years, the companies, in conjunction with industry partners, unveiled a breakthrough in network virtualization (VXLAN) that will broaden the mobility range of virtual machines across multiple datacentres and cloud environments.

The companies also announced enhancements to several desktop virtualization and cloud infrastructure solutions designed to boost scalability, security and performance.

VMware vCloud Powered Program Gains Traction with Service Provider Ecosystem, Delivering Customers a Broad Array of Public Clouds Compatible with VMware Platform

VMware Acquires PacketMotion to Augment Security Offerings

On August 26th, VMware announced the acquisition of PacketMotion. PacketMotion is focused on delivering user activity context for network segmentation and data access monitoring and recently introduced the PacketSentry Virtual Probe, which is optimized to efficiently monitor and enforce identity based network access controls in VMware vSphere.

vShield 5 introduced sensitive data discovery and intrusion detection capabilities. These capabilities give us the what and the how of this equation (the sensitive data and its location). PacketMotion can provide the who (who is accessing it).

The combination presents an opportunity to make it possible for customers to automate security and compliance policies in a completely business-driven language.

 

Filed Under: Virtualization, VMware, VMworld Tagged With: Recap, VMworld 2011

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About latoga labs

With over 25 years of partnering leadership and direct GTM experience, Greg A. Lato provides consulting services to companies in all stages of their partnering journey to Ecosystem Led Growth.