SEC not to recommend action against IBM on cloud revenue

SEC not to recommend action against IBM on cloud revenue

Mon, Jun 2 2014

(Reuters) – The U.S. Securities and Exchange Commission has completed its probe on how International Business Machines Corp reports revenue from its cloud computing business and does not intend to recommend any enforcement action, the company said.

The company did not provide details or reasons for the investigation.

The company said last July that it was facing an investigation from the Division of Enforcement of the SEC as to how it reported its cloud computing business revenue.

IBM reported $4.4 billion in revenue from its cloud computing business in 2013.

IBM shares closed at $185.69 on the New York Stock Exchange on Monday.

The fear factor: Why Asian firms need to take on the world

The fear factor: Why Asian firms need to take on the world

May 31st 2014 | From the print edition

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FUJIO MITARAI KNOWS more than most people about building a multinational. He is the 78-year-old boss of Canon, one of Japan’s biggest firms. Worth $43 billion, it makes everything from scanners to lenses for Hollywood. It first opened a New York office back in 1955, but breaking into America took 20 years of hard slog and an Apple-style innovation. In 1976 the company launched a cheap, automatic single-lens-reflex camera on the back of a massive advertising campaign. Mr Mitarai was in charge and the memory still makes him smile. “Our competitors thought I’d gone crazy.” Canon became America’s biggest camera firm. Today it faces competition from smartphones and low-cost rivals. Mr Mitarai insists innovation will keep the firm ahead of the pack. It is developing a raft of new products, from surveillance cameras to virtual-reality design studios and 3D printing materials. Read more of this post

Hutchison Whampoa: Now for the fat-cow years; Lessons in survival from an Asian corporate legend

Hutchison Whampoa: Now for the fat-cow years; Lessons in survival from an Asian corporate legend

May 31st 2014 | From the print edition

IF YOU WANT to hear some plain talk on the relative merits of family-controlled conglomerates, listen to Canning Fok, managing director of Hutchison Whampoa, one of the region’s biggest specimens with a value of $60 billion and a worldwide empire of ports, energy, property, telecoms and retail. “There’s a school of thought in America that widely held companies have better governance,” he says. “But if you look over the last ten years that has not happened. Just look at the big banks and all the chief executives going crazy.” Read more of this post

Get up and dance: China Mobile, a state-owned giant, is having to reinvent itself

Get up and dance: China Mobile, a state-owned giant, is having to reinvent itself

May 31st 2014 | From the print edition

THROUGH THE SMOG in Beijing’s Financial Street you can see the glass-and-steel headquarters of many of China’s giant state-owned-enterprises (SOEs). The flash buildings are a statement of might, but inside them the mood is more of anxious self-reinvention. Most SOEs are in fast-changing industries, and since last year China’s government has made clear that it wants them to become more market-orientated and more competitive. As a result, some of these organisations now face the largest transformation in corporate history. Read more of this post

Governance: Avoiding the dinosaur trap; State firms and family conglomerates are Asia’s favourite kinds of companies. Both must change

Governance: Avoiding the dinosaur trap; State firms and family conglomerates are Asia’s favourite kinds of companies. Both must change

May 31st 2014 | From the print edition

ASIA IS A land never conquered by institutional shareholders. Only 28% of the region’s stockmarket consists of firms with diverse owners (see chart 4). Most of these are in Japan, where businesses are controlled by managers and employees who by long-established protocol politely listen to and then ignore what fund managers say. State-run firms make up 40% of Asia’s total and family-run firms, often conglomerates or “business houses”, account for 27%. The proportions vary from country to country (see chart 5). In China state-run firms dominate, whereas in South Korea and India business houses are prominent. All this has been true for a long time and it is tempting to think it will never change. That would be a mistake.

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How to keep roaring: Over the past two decades Asia’s companies have enjoyed huge success. But now they need to reform to become brainier, nimbler and more global

How to keep roaring: Over the past two decades Asia’s companies have enjoyed huge success. But now they need to reform to become brainier, nimbler and more global, says Patrick Foulis

May 31st 2014 | From the print edition

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Convergence: Asian and Western business will become more alike

Convergence: Asian and Western business will become more alike

May 31st 2014 | From the print edition

ASIA PROSPERED OVER the past two decades by following a different economic model from the West’s. But if it wants to continue to do well over the next 20 years, it will have to reform. What that involves will vary from place to place. Myanmar, a big country with a difficult past, is beginning to pull itself out of the mire. India and Indonesia, two chaotic democracies, have to create enough order to attract factories and industrial jobs. In China the government needs to ease its grip on the economy. Japan is embarking on the world’s biggest experiment to see whether a society can shrink and still remain prosperous. Read more of this post

Megatrends Q & Asia: A handful of Asian conundrums the world’s boardrooms should chew over

Megatrends Q & Asia: A handful of Asian conundrums the world’s boardrooms should chew over

May 31st 2014 | From the print edition

OVER THE PAST decade innumerable PowerPoint presentations have condensed Asia into two bullet points. One is its rise as a vast consumer market. About 30% of the world’s middle-class spending is done by Asians, up from 20% in 2000, according to the Brookings Institution, a think-tank, which defines the middle class as those earning $10-100 a day at purchasing-power parity. The other is Asia as a production hub: 47% of world manufacturing is now in the region. But the world’s boardrooms have started to grapple with a much broader set of questions about Asia. The most immediate ones are higher labour costs and ageing populations, growing consumer expectations and the way the internet will affect business there. A rising risk of hostilities in the region is adding further complexity. And in the background looms the broader issue of whether, and if so how much, Asian companies need to globalise (which will be dealt with later in this special report). Read more of this post

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