Thursday, September 22, 2005

LBHub TechAlert for September 23, 2005


IM continues steady climb in workplace despite risks
We are just wrapping up our twice-yearly tracking survey of instant messaging in the workplace. The results are not particularly stunning, but they reflect the maturation of the IM market and its continued growth.

Here are some of the results from the research:
- Twenty-six percent of e-mail users in the workplace use IM on a regular basis while at work, up slightly from 24% as we found in the March survey. This figure continues to creep up consistently as new users realize the benefits of using IM in the workplace.
- Fifty-two percent of organizations are using IM for real-world business applications, identical to what we found in our last survey. While this figure is impressive given that consumer IM clients dominate the use of IM in the workplace, we expect this figure to climb significantly as organizations roll out their own enterprise-grade IM systems and/or provide enterprise features to the current base of IM clients, instead of relying solely on the viral nature of IM to expand its use.
- Two-thirds of organizations are concerned or very concerned about the potential for viruses, worms and other threats to enter their networks through IM. This is the highest percentage of respondents that are this concerned since we added this question to the tracking survey last year. I suspect that this concern is due, in large part, to the well-publicized nature of the growing number of IM threats that have affected IM systems - the number of IM threats so far in 2005 is dramatically higher than for all of 2004.
- The three leading consumer IM clients - AOL Instant Messenger, MSN Messenger and Yahoo Messenger - continue to be the three leading workplace IM clients. Lotus Instant Messaging and Web Conferencing (Sametime) continues as the leading enterprise IM system in use, although Microsoft Live Communication Server continues to increase its penetration. Surprisingly, Google Talk is already present in a significant percentage of the organizations we surveyed, despite the fact that it was introduced only recently.

Microsoft Turnover
Microsoft, the largest software maker in the world, said that it had realigned into three divisions and said that James Allchin, the Windows chief, planned to retire at the end of next year. Ray Ozzie, who joined the company this year as chief technical officer, will expand his role, Microsoft said in a statement. Microsoft will divide into a platform products and services unit including Windows for PCs, servers and tools and MSN, run by Kevin Johnson and Allchin. The business division, which will include Office products, will be headed by Jeff Raikes. Robbie Bach will become president of the entertainment & devices unit.

Google tests Wi-Fi
The Internet search leader Google is preparing to release its own wireless Internet service, Google WiFi, according to several pages found on the company's Web site on Tuesday. The Google site refers to a product called "Google Secure Access," which is designed to "establish a more secure connection while using Google WiFi," according to a page of frequently asked questions. Another page, offers a free download of Google Secure Access. Google declined to comment.

Baidu plans appeal
The Chinese search engine Baidu.com plans to appeal a court ruling that it violated copyrights held by a local affiliate of the music company EMI, Baidu's lawyer said. The Haidian District Court in Beijing found Baidu guilty on Monday, saying that it provided access to Web sites offering illegal MP3 files of music belonging to the recording company Shanghai Push, also known as Shanghai Busheng Music Culture Media. Baidu argued that it provided a search function, not downloading services, and therefore was not violating copyrights.

ITunes battles over prices
Steve Jobs, the chief executive of Apple Computer, vowed Tuesday to resist music companies' "greedy" demands for price increases on the iTunes music download site and warned that such a move would encourage piracy. The company also updated its online subscription service, quadrupling the storage space available over the Internet.

DJ ditty’ from Dell
Dell, the largest maker of personal computers, introduced a smaller version of its digital music player to help tap a market dominated by Apple Computer's iPod. The Dell DJ Ditty music player will sell for $99. Separately, Kevin Rollins, the chief executive of Dell, said greater sales to China would help the company meet its goal of making about $80 billion in annual sales within four years.

Outlook improves
Mitsubishi Electric, the Japanese electronics conglomerate, raised its net profit estimate for the business year ending in March by 10.7 percent on strong sales of factory automation equipment and cost cuts.

Browser without Ads
The Norwegian group Opera Software said it would offer its Web browser Opera free and without advertising banners, in a bid to outdo a rival, Firefox, and become the world's second-most-used browser, after Microsoft's Internet Explorer.

Tèlècom France sells shares
France Télécom sold new shares Tuesday for €898 million, or $1.09 billion, to help finance the purchase of 80 percent of the Spanish mobile company Amena.

Cellphones on flights
Two European airlines - TAP Air Portugal and the British carrier BMI - will allow passengers late next year to use their own cellphones on flights within Western Europe, according to OnAir, a Swiss technology company.

Net Phone service
Qwest Communications International and Microsoft said they would offer Internet phone service to small and midsize businesses, starting in 2006.
Time Warner also said that its America Online unit would introduce a Web phone service called TotalTalk early in October.

Telefònica stake grows
Telefónica, the Spanish phone service, bought €917 million worth of shares in Cesky Telecom, raising its stake in the largest Czech phone company to 69 percent from 51 percent as part of an offer for all of Cesky.

Chirac questions H-P plans
President Jacques Chirac of France called on the European Commission to examine plans by Hewlett-Packard to cut 5,900 jobs in Europe. Chirac also asked ministers to ensure that Hewlett-Packard "fully respects" its obligations under French labor law. The French labor minister, Gérard Larcher, said he would meet with the head of Hewlett-Packard's European operations next week to discuss the computer company's plans to cut jobs in the country. Larcher, who met Wednesday with labor union representatives of Hewlett-Packard France, will meet Francesco Serafini on Monday, the Labor Ministry said in a statement. Hewlett-Packard, the largest maker of printers in the world, said on Sept. 12 that it planned to cut 1,240 jobs in France as part of a worldwide plan to shed 10 percent of its work force. Larcher wants a "clarification of its strategy and concrete assurances about the continuity of its operations and its development in France," the statement said.

AOL to Roll Out VoIP in the U.S. in October
AOL will launch TotalTalk, its VoIP service, in the U.S. on October 4. The service, which will not require an AOL subscription, will be offered in multiple calling plans including an unlimited national calling plan for $29.99 per month. AOL plans to have its phone service interoperate with email and its instant messaging client.

Ingenico costs rise
Ingenico, a leading maker of electronic payment systems, reported a first-half loss as costs rose and its chief executive of three months, Amedeo d'Angelo, took charges to reorganize the business. The company, based in a Paris suburb, posted a net loss of €24.6 million, or $30 million, compared with net income of €2.9 million a year earlier. Ingenico took a €24 million charge to cover inventory writedowns and the costs of fixing a faulty product. Operating profit sank 87 percent to €1.1 million. D'Angelo has replaced a third of the top executives and plans to reduce the range of products, cut costs and sell some businesses.

Esmertec posts loss
Esmertec, a Swiss maker of software for mobile phones, posted a loss for the first half on costs from two failed public offerings and a bad debt provision. The company posted a loss attributable to shareholders of $1.9 million, after a loss of $4.1 million a year earlier. It also said its chief financial officer, Arno Waschkau, would step down on Nov. 1 for personal reasons and would be replaced by Deborah Choate, former chief financial officer of Wavecom.

Nokia milestones
Nokia, the biggest cellphone maker in the world, delayed the introduction of its N91 music phone to the first quarter of next year to improve the phone's features. The company, which originally planned to start selling the phone in the fourth quarter, will add features to enable music downloading from services using Microsoft technology, a spokesman said. Nokia also said it was expanding its range with a new cellphone to sell cheaply in emerging markets. The folding 2652 model will have an estimated retail price of €100 and will be sold starting next month in China, the Middle East, Africa and Europe. The company reported selling its one-billionth cellphone and estimated that more than two billion people use mobile phones worldwide. The phone was sold in Nigeria this summer, a Nokia 1100 model that retails for less than €50.

Solar offering
Q-Cells, a German maker of solar cells, and its owners plan to raise as much as €280.3 million in a share sale, one of four planned initial public offerings of solar-power companies in Germany this year. Q-Cells plans to sell as many as 6.66 million shares for €29 to €34 each.

Shares in commerce
Rue de Commerce, the largest French Internet retailer of electronics, plans to raise as much as €69 million in an initial share sale to increase its after-sales services and expand in Italy and Spain. The company, based near Paris, started selling 3.85 million shares on Wednesday at €13.42 to €15.60 each, it said.

Inkjets disappoint
Seiko Epson cut its operating profit forecast by 46 percent for this business year, underscoring a slide in prices and sales of display panels and inkjet printers. Seiko Epson, the second-largest maker of inkjet printers after Hewlett-Packard, forecast a group operating profit for the year ending next March of ¥44 billion, down from the ¥82 billion it estimated in late July.

IBM in Poland
International Business Machines will open a software center in Poland to benefit from Polish government aid for new employers. IBM plans to hire 200 people in the next two years for a new center in Krakow. The government will support it with 800,000 zloty, or $250,000, from a fund for raising employment among people with university degrees.

Anti-pornography in Italy
Police officers conducted raids in Italy, Denmark, France, the Netherlands, Sweden and Britain, detaining up to 30 people and placing 80 under investigation, to crack a child pornography ring that shared abusive images over the Internet, officials said. The Carabinieri paramilitary police of Rome, who led the operation, said in a statement that the suspects had created a secure network that let them use the Internet to anonymously share pornographic images of children 11 and younger.

Thursday, September 01, 2005

LBHub TechAlert for September 1, 2005


A German court ruled that Deutsche Telekom should pay Telegate, a telephone-directory service provider, €65.2 million for overcharging for data since the directory market was opened to competition in 1996.

The regional court in Cologne ordered Deutsche Telekom to repay the equivalent of $80.4 million to Telegate for "excessive data costs" and interest since Telegate filed a complaint last December. Deutsche Telekom said it would appeal.

The decision in Cologne comes after a ruling last November by the European Court of Justice in Luxembourg that KPN, the largest Dutch phone company, may charge alternative directory service providers for the transfer of data only and not for the cost of collecting it.

Logica profits: LogicaCMG, a British computer-services provider, said first-half profit rose 62 percent to £24.1 million, or $43.5 million, as British sales rose and the company's German unit reported a smaller loss. Sales rose 11 percent to £891.7 million.
The company's units in Britain and the Netherlands are compensating for Germany and France, where the company is heading for a third unprofitable year. LogicaCMG won contracts this year from clients including the British Ministry of Defense and the London Metropolitan Police.

Photo fears: South Korea plans to raise its concerns with the U.S. government about a service offered by Google that displays satellite photos of sites around the world, the president's office said. Recent South Korean newspaper reports have pointed out that Google Earth provides images of the presidential Blue House in Seoul and military bases around the country, which remains technically at war with North Korea.
North Korean sites like the nuclear research facility at Yongbyon are also displayed on the service, which was introduced in June.

Digital Disney: Kudelski, a Swiss provider of security for digital pay television, has set up a joint venture with Walt Disney to develop and market a video-on-demand system for digital television operators worldwide.
Kudelski and Walt Disney Television International said their set-top box system would offer a selection of movies and other television content delivered to its hard drive, as well as the capacity for subscribers to record personal content from existing channels. The system is designed to run on satellite, cable, terrestrial and IP digital video recorder hardware platforms, the companies said.

Italian net loss: FastWeb, the only Italian provider of Internet-based TV and video on demand, said its second-quarter loss widened to €79.6 million from a loss of €45.5 million a year earlier as higher operating expenses and commissions outweighed rises in sales and customers. FastWeb added more than 56,000 clients in the quarter, bringing the total to 598,000 at the end of June. Sales rose 27 percent to €227 million.

Paypal pricing: EBay's PayPal online payment service introduced special pricing for payments of digital goods, like music downloads. The new fees will enable merchants to process payments under $2 at a rate of 5 percent plus 5 cents per transaction, PayPal said.

Traffic alert: Traffic.com, a Pennsylvania-based provider of real-time traffic information, plans to offer shares in an initial public offering and said it hoped to bring in as much as $86.3 million. The shares will be listed on the Nasdaq if the offering is approved by regulators.

Flat-panel loss: Quanta Computer, the largest maker of notebook computers in the world, said first-half profit fell 30 percent from a year earlier to 4.15 billion Taiwan dollars, or $126.7 million, because of a loss related to its investment in flat-panel displays.

Mobile India: Bharti Tele-Ventures, Reliance Infocomm and other Indian mobile phone companies are set to increase their subscribers by five times to more than 300 million by the end of 2009, the research firm Gartner estimated. Gartner predicted that revenue from mobile phone services in India would reach $24 billion in 2009.

Fixed-line fall: China Telecom, the largest Chinese fixed-line operator, said its first-half net profit slipped to 14.70 billion yuan, or $1.81 billion, from 14.71 billion yuan a year earlier as costs rose. Revenue rose to 84.02 billion yuan from 80.22 billion yuan.

Google takes aim at Instant Messaging


Last week, the industry was abuzz about Google introducing its Google Talk application, an instant-messaging system designed to interoperate with Jabber and Trillian right away and possibly with other IM networks down the road.

Google's offering will be similar to several other consumer-oriented IM networks in that it will provide conventional IM capabilities in addition to PC-to-PC telephone capabilities. While several IM systems are today interoperable via federated networks, the primary difference with Google Talk is that it will be an open system that is more natively interoperable than many other IM systems.

Early reviews of Google Talk indicate that its interface and capabilities do not really represent a stellar jump forward in terms of usability, features or functions - there is no video chat in the current iteration of Google Talk, for example.

However, I believe that Google Talk has the potential for making a major impact in the IM world. Google has been very aggressive and successful in the markets it has entered. For example, Google is the dominant search engine in use, accounting for 46.2% of online searches conducted in July, according to Nielsen NetRatings; Google Maps, launched in spring 2005, already has 7.2 million users; Gmail is gaining market share among Webmail systems.

I expect Google Talk will also gain market share fairly rapidly because of its ability to interoperate right away with the millions of Jabber and Trillian users and because of the potential for expanding this interoperability to other platforms - not to mention the fact that Google Talk will likely integrate with Google's other Web, e-mail and desktop-based properties.

The success of an IM system is due largely to its "gravity," since the greater the number of users an IM system has, the more likely it is to attract new users. However, our research has shown that, at least in the workplace, the number of IM clients per organization continues to grow. That means that even if someone is already using AOL Instant Messenger, Yahoo Messenger or MSN Messenger, there is a strong possibility they will adopt a new IM client, particularly if it's free and offers capabilities that they find desirable. I expect Google Talk to be such a product.

Write: by LuisB 09.2005

Wednesday, August 31, 2005

Google Losing Ground in China

Though its stock price has settled well below Google's, Baidu has made gains in search engine share on its minority stakeholder.

Google owns 2.6 percent of Baidu, but Baidu owns Google in terms of share of the burgeoning Chinese search market. An AP report notes Beijing's China Internet Network Information Center has Baidu's share at 52 percent of the Beijing market.

Mountain View-based Google held steady at 33 percent market share in Beijing; the study breaks down share by cities. Companies like Google, Baidu, and other search engines have begun to battle over a growing Chinese market of some 103 million Internet users.

The study by the CNNIC agency covers other cities in China, like Shanghai and Guangzhou. Baidu led Google in both of those markets. In contrast, Yahoo's market share was noted as being in single digits, alongside some local search engine companies.

Google has aspirations to increasing its share of the Chinese market. The company has established an office in Shanghai and added a top-level domain for its Chinese language site (google.com.cn).

The most public demonstration of Google's commitment to China has been playing out in courtrooms in California and Washington state. A Microsoft executive, Dr. Kai-Fu Lee, left Redmond to join Google, apparently against the terms of a non-compete clause in his employment contract.

Google wants Dr. Lee to head up its China operations for two years. Microsoft wants him idled for a year before taking up the position with Google as they allege his work for Google in China would directly compete with Microsoft.

For more information’s concerning the Chinese Internet market read “ The 16th Survey Report

By: LuisB

Monday, August 29, 2005

Holding line on music prices a tough Job

Two big music publishers won't take part in iTunes Japan, a business strategem that can best be summarized as "gimme."

Apple's iTunes defined the legal music download market. At 99 cents per song, Apple CEO Steve Jobs put a system in place that boosted Apple to record profitability while reviving interest in a gasping music market.

Now a New York Times article suggests music publishers like Sony BMG and Warner Music, which will not license their music to iTunes Japan under the current pricing structure, could try that in the US market. This happened despite Apple using different pricing levels in the Japanese market, considered the second largest in the world.

Looks like the uptick in music interest since iTunes arrived in 2002, the proverbial rising tide lifting all boats, has awakened a bit of greed in music publishing circles. With the industry's legal arm, the RIAA, having had some success in conducting litigation against illegal file swapping, perhaps the publishers feel they have cooled interest enough in illicit downloads to demand greater profits on the backs of those switching to legal services.

Sony BMG, which recently had to settle with New York Attorney General Eliot Spitzer's office for its illegal payola practices, and the other three big music publishers may be ready to start dictating terms to Mr. Jobs. That would definitely see price increases imposed on new music; the Times cites the possibility that iTunes would be allowed to offer lower prices on older music. Call it the modern equivalent of the remainder bin.

Apple reportedly pays as much as 70 cents per single to publishers now; that could be higher in the case of the major publishing houses. With Apple having now sold well over 500 million songs on iTunes, the publishers have made hundreds of millions of dollars in a short span of time.

Apple's iPod media player drives the company's profitability and iTunes figures in that strategy. Mr. Jobs can't afford to have users defect to other services or go back to the brisk file-swapping trade. He'll have to convince the publishers that they can't afford that, either.

Write: by LuisB

Friday, July 22, 2005

Chinese currency move won't affect industry and trade PC costs



Currency revaluation should not impact end-user prices for IT goods. China's currency revaluation raised the cost of paying worker salaries at the thousands of electronics factories across the nation, but that won't impact end-user prices for IT goods like PCs and servers, analysts say.

On last Thursday (07.22.05), China dropped a decade-old peg to the U.S. dollar and said it will allow its renminbi currency to fluctuate more freely against a group of currencies. Initially, the change amounts to a 2 percent rise to 8.11 renminbi per dollar. Before the revaluation, a dollar bought 8.28 renminbi.

It may seem like a small change, but currency fluctuations can have a huge impact on product prices -- and China makes more notebook computers, PCs and other finished electronics goods than anywhere else.

Even though the majority of this equipment is built in China, (the revaluation) will have a fairly small impact on the cost of making these products.

The majority of PC and laptop parts -- and the most expensive, like central processors and flat screens -- won't be affected by the currency change anyway because they're not made in China. Labor is the main value added at Chinese electronics manufacturing plants, and that's a fairly small part of overall cost.

The stronger renminbi also offers some benefits to companies operating in China that should help offset higher labor costs. Since most global commodities and even computer parts prices like DRAM (dynamic RAM) are quoted in U.S. dollars, Chinese factory owners should be able to get more for their money thanks to the currency change.

For example, Merrill Lynch estimates that Canon will have to pay an additional ¥9 billion ($82 million) for production at its digital camera and other imaging plants in China due to the currency revaluation. But the Japanese company will save money on parts, offsetting about half of the higher production bill.

Over the long term, China's currency will likely rise slowly -- no more than a few percentage points per year over the next several years, said Duncan Wooldridge, an economist at investment banking firm UBS in Hong Kong.

A few points a year could add up over time and start a trickle of offshoring from China to less-expensive developing nations like Vietnam to keep costs down. But in the next few yeas, the electronics industry won't see much impact from China's currency revaluation.

Thursday, July 07, 2005

Blasts Rock London Underground and Downtown

Today 7 July 2006 multiple explosions, at least six, were reported in London's underground subway system during this morning's rush hour. BBC and others medias around the world reporting a coordinated attack:

"Casualties reported as explosions hit the London Underground subway system and at least one bus. Causes of the blasts are not clear."

Police say there are at least two fatalities... Radio stations in London say as many as 37 dead and 700 blessed (two are italian citizens)... Some suggest it may have been an electrical system failure or a power surge; others suspect terrorism because evidence of explosives was found... The Tube is closed... Story is developing minute by minute…

... Tony Blair on TV... says he thinks it was a terrorist attack. He seems shaken... says he is going to London to find out more details..."I'ts particularly barbaric that this has happened on the day that people are meeting to discuss helping Africa... Our determination to defend our values and our way of life is greater than their determination to impose extremism on the world..." He views it as an attack on "civilized" people...

Blair is speaking again... has regained composure...says again terrorists will not succeed, will not weaken our resolve... to combat those who would "impose" their extremism.. he is speaking while flanked by all the leaders of the G8, including Bush and Chirac; the other leaders stand silently, stiffly behind him...

Some british friends living in London city contacted by phone reports convoys of buses taking people to hospital... many still trapped underground... situation is confusing... security stepped up... report 90 casualties in one Tube station... On a personal note, having just been in the Tube in London earlier this week, I know how terrifying this must have been... There are reports that there were warnings....

U.S. terror alert has not been raised... Stay tuned for more all around the world but for the moment the people live in countries like Italy and Denmark starting loosing is peace of mind...
Writte; by LuisB

Website Carries Statement Claiming Credit

"The BBC has located an Islamist website that has published a 200-word statement issued by an organisation saying it carried out the London bombings. The organisation calls itself the Secret Organisation Group of al-Qaeda [literally the base] of Jihad Organisation in Europe. The group not previously been heard of. The website has previously carried statements purporting to be from al-Qaeda. It is not possible to verify such claims published on the web. This is the full text of the statement."

"'In the name of God, the merciful, the compassionate, may peace be upon the cheerful one and undaunted fighter, Prophet Muhammad, God's peace be upon him.
"'Nation of Islam and Arab nation: Rejoice for it is time to take revenge against the British Zionist Crusader government in retaliation for the massacres Britain is committing in Iraq and Afghanistan. The heroic mujahideen have carried out a blessed raid in London. Britain is now burning with fear, terror and panic in its northern, southern, eastern, and western quarters.
"'We have repeatedly warned the British Government and people. We have fulfilled our promise and carried out our blessed military raid in Britain after our mujahideen exerted strenuous efforts over a long period of time to ensure the success of the raid.
"'We continue to warn the governments of Denmark and Italy and all the Crusader governments that they will be punished in the same way if they do not withdraw their troops from Iraq and Afghanistan. He who warns is excused.

"'God says: "You who believe: If ye will aid (the cause of) Allah, He will aid you, and plant your feet firmly."

Friday, July 01, 2005

Technology Industry Week Overview

Top of the News
Government Launches Internet Piracy Offensive Washington Post (reg)
Would Microsoft buy an AdWare firm? Computer Business Review
Is On-Demand Ready for the Enterprise? CRM Daily
Internet Users Driving New Services on Web E-Commerce Times
Errant Politician email calls Constiuents "idiots" JournalNews.com
Beginning of the End for Dynamic IP Addresses? Register
The first RSS focused VC fund is announced--$100m SiliconValleyWorld
Why Mac Users Are Beginning To Seem a Little Less Smug MacNewsWorld
Tech Firms call for approval of cybercrime reality CNet
Survey Finds Up to 44 Million in U.S. May Be Victims of ID Crime InformationWeek
Year After Giant Flop, Online Media Take Hold LA Times
India's Electronics Industry Will Grow Faster than China's InformationWeek
Dorms, pizza, books and illegal downloads Seattle Post-Intelligencer
China nabs 2,600 for piracy Red Herring

Feature Stories
U.S. Intends to Maintain Role in Overseeing How Internet is Run BBC
Report: Expect to wait up to a decade for 'On-Demand' world ZDNet
How To Dig Out From Under Sarbanes-Oxley CIO
Weakness in the Data Chain New York Times
Survey: Corporate Web Sites low on Customer Respect ComputerWorld
P2P: Music Industry Must Look in a Mirror Forbes

Public Policy/Legal News
Is The BitTorrent whiz a sitting duck? Wired
SCO versus Novell going all the way Computer Business Review
Prosecutors revise indictment of ex-CA CEO Kumar ComputerWorld
Another Class Action Click Fraud Suit Against Google ClickZ
AMD Expands Suit Against Intel CRN
Amazon Sued for Copyright Infringement Washington Post (reg.)
Senators Propose Sweeping Data-security bill CNet
House Reform Committee Eyes IPv6 Lag Telecomweb

Offshoring News
Microsoft Bands With Outsourcing Joint Venture in China CRM Buyer
Outsourcing Is Good for U.S., Says Professor CRM Daily
Offshoring Drives Up Xansa Profits ComputerWeekly
Top execs quit Indian offshore outsourcer Wipro silicon.com
India wants H1B Triples, Dangles Quid Pro Quo TechWeb News
India faces US-style labor pains ZDNet

Wireless News
PalmSource Clarifies Linux Roadmap, Signs Big Vendor mobilepipeline
Report on Wireless Growth Flawed? NWC
Sun, NTT DoCoMo Team on Java for Mobile Data InformationWeek
Ericsson Resells Airspan Unstrung

Open Source News
Linux Gets Black Eye in Chinese Report LinuxInsider
Red Hat revenue surges 46 percent CNet
Java hardware start-up wins early allies ZDNet
Sun reconsiders Linux desktop vnunnet.com
Sun mulls open-source move for Java Desktop System Computerworld
Norwegian Government backs Open Source TechWorld

Security News
Microsoft Confirms Code Execution Hole in IE eWeek
Rats in the security world SecurityFocus.com
Weakness in the Data Chain NY Times (reg.)
Antispam proposals advance ZDNet
DVD Jack Hosts Google Viewer PCWorld
Fujitsu to sell Palm vein ID systems outside Japan Reuters
How to Deal with Pushy Security Vendors Computerworld

Company News
Is Microsoft Eyeing Claria? ClickZ
Will SAP sample hosted recipe? CNet
Microsoft woos world's scientists BBC
IBM to Apple: We Have the Right Watts eWeek
Sony Jumps on Legal File-Sharing TechNewsWorld
Cisco: Paging Dr. Info Tech BusinessWeek
Microsoft and TCS announce Chinese software venture Computer Business Review
IBM Global Services Restructures Line56

Intel CEO fires back at AMD Suit ZDNet
SAP Offers Safe Passage program to midsize firms CIO
Google from Space CBR
Sun Bolsters Java with $387 Million Acquisition eCommerce Times
AOL Boosts Video Search Internetweek
Patent spat costs RIM Millions ZDNet

Friday, April 15, 2005

Technology Industry Daily Overview

FOCUS

Sean "P. Diddy" Combs Signs Deal with Warner
Sean "P. Diddy" Combs reached an agreement to bring his Bad Boy Record label to Warner Music Group in a multiyear joint venture. The deal, estimated at $30 million, gives Warner 50% ownership in Bad Boy's catalog of past releases and allows the company to issue music in digital and wireless formats, such as ringtones.
Source: Wall Street Journal

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Industries Discuss TV on Wireless Phones
At this year's MIPTV/MILIA audiovisual and digital content trade show many questioned the possibility of delivering TV to wireless phones. A main concern is whether or not wireless users will consider TV on wireless phones a must have option and no one knows what people will really want to watch on their handsets. According to Nokia, wireless consumers want to be entertained and informed about everything, everywhere, all the time.
Source: AFP

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Samsung Reports Decline in Profit
Samsung Electronics reported a worse-than-expected 52% decline in first quarter 2005 profit, due to a decline in flat-screen prices, lower profit margins on wireless phones and losses at its credit card affiliate. Net profit fell 52% to 1.49 trillion won in the first quarter 2005, down from 3.14 trillion won in the first quarter 2004. Sales fell to 13.8 trillion won in the first quarter 2005, down from 14.4 trillion won in the first quarter 2004.
Source: Wall Street Journal, Reuters

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Sony Ericsson Reports Decline in Net Profit
Sony Ericsson reported its net profit fell 61% in the first quarter 2005, due to a continuing decline in wireless handset prices. The company reported net profit fell to €32 million in the first quarter 2005, down from €82 million in the first quarter 2004. Sales fell 4% to €1.29 billion in the first quarter 2005. Sony Ericsson sold 9.4 million wireless phones in the first quarter 2005, up 7% from 2004.
Source: Reuters, Dow Jones Newswire 1, Dow Jones Newswire 2

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Rogers Plans to Deliver Live TV to Wireless Phones
Rogers Communications announced it will be the first Canadian telecom company to deliver live TV to wireless phones. The company plans to launch the service in the current quarter with at least eight channels.
Source: Reuters

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Greek Wireless Carriers Target Data Content
Greek wireless service providers are counting on technology-savvy and deep-pocketed users to boost future growth of data content as new users begin to taper off. Latest figures from Greek wireless service providers show the country's wireless penetration rate at nearly 100%, making it one of Europe's most saturated markets.
Source: Reuters

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VimpelCom Posts Net Profit
Russia's second largest wireless service provider, OAO Vimpel Communications, posted a 28% increase in fourth quarter 2004 net profit. Net profit rose to $83.7 million in the fourth quarter 2004, up from $65.6 million in the fourth quarter 2003. The company's revenue increased 56% to $635.7 million in the fourth quarter 2004.
Source: Dow Jones Newswire

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Israeli Wireless Carriers Plan to Launch BlackBerry
Israel's three largest wireless service providers plan to launch Research In Motion's BlackBerry wireless email devices in the country. Wireless carrier Cellcom said it would initially offer the BlackBerry 7290 and 7100g wireless phones on its GSM/GPRS network. Financial terms and timing of the launch were not announced.
Source: Reuters

Tuesday, February 22, 2005

TECHNOLOGY MARKET - USA

Bush's '06 budget request boosts IT - for a few
Don't be fooled by the 7 percent increase in IT spending proposed in President Bush's fiscal 2006 budget request. Although the IT budget request of $65.1 billion boosts spending by more than 20 percent each at the departments of Homeland Security, Justice and Veterans Affairs, most agencies received only modest increases, and six had their IT budgets cut.

Additionally, among the 21 agencies slated to receive increases for 2006, five -- the departments of Education, State and Treasury, the Army Corps of Engineers and the Office of Personnel Management -- remain at or below their 2004 IT budgets.

"We will have to manage as we always do, and maximize the money we have to make sure our spending makes sense," said Patrick Pizzella, the Labor Department's chief information officer. The Labor Department's IT budget was cut in 2005, and it faces a cut of $13 million to $409 million in 2006.

In contrast, DHS is slated to receive $6 billion, a $1.2 billion increase that industry officials said compensated for two years of underfunding at the agency. "Officials recognized that some of the programs at Homeland Security, such as U.S. Visitor Immigrant and Status Indicator Technology System, were underfunded, considering the scope of the effort," said Jim Flyzik, a former DHS official and a partner with consulting firm Guerra, Kiviat, Flyzik and Associates of Oak Hill, Va. "Many of these programs were underfunded at the concept stage, but as you put more meat on the bones of the business cases, you can articulate the funding levels better."

U.S. Visit is not the only program that would get a large increase. The Transportation Worker Identification Card, the Integrated Wireless Network and the Coast Guard's Nationwide Automatic Identification System would all get more than a $25 million boost in 2006.

"DHS clearly is a winner, and they might not get enough," said Robert Atkinson, vice president and director of technology and the new economy project for the Progressive Policy Institute in Washington. "I don't think the question for Homeland Security, as it is for all agencies, is really about overall funding, but it is much more about what the administration is investing in and how well they are doing it."

Veterans Affairs was another budget winner with a $485 million increase to $2.1 billion for its IT budget.

"The increase is reflective of the administration's attitude toward IT as a toolset everyone needs to use, but they need to use it wisely to make government more effective," said CIO Robert McFarland.

McFarland said more than $300 million of the increase is for the Veterans Health Information Systems and Technology Architecture.

Although VA's increase, like many other agencies, is because of a planned big money need for an IT project next year, many of the department's expanded dollars are at the expense of other programs or personnel.

The Defense Department, which has an IT budget that comprises nearly half of the entire federal technology expenditure, saw a 4.9 percent increase to $30.1 billion, its largest increase in four years.

Linton Wells, the Defense Department's CIO, said he was encouraged by the 2006 budget process.

"In the battle over digits versus widgets, widgets always win. This year, digits are winning," he said.

Industry officials said it's not surprising that the departments of Defense and Homeland Security fared well in the budget request. Both departments perform missions that are top administration priorities, and both are in the middle of transformations. The IT budget requests reflect that.

"There are a lot of new capabilities and modes of operational services DOD is looking at dealing with, linking networks and getting soldiers a better picture of what is happening on the battle field," said Steven Kosiak, director of budget studies for Washington think tank the Center for Strategic and Budgetary Assessments. "All of the modernization or transformational efforts rest on, to some degree, putting more money into IT."

Although most agencies are faced with tight budgets, they are successfully meeting the administration's IT goals. The Office of Management and Budget approved more business cases for the 2006 budget process than ever before, according to budget documents.

Seventeen of 25 agencies had all their business cases approved, according to the budget. And just 342 IT business cases of 1,087 made the Management Watch List for lacking in one of three areas: assuring security; meeting cost, schedule and performance goals; or establishing performance measures. Last year, OMB said 621 of 1,130 IT projects made the watch list. The 342 programs are worth $15 billion, down $7 billion from last year.

"We are starting to see the fruits of our labor," said Karen Evans, OMB administrator for IT and e-government. "We've been asking agencies to tell us how they are becoming more efficient and, to their credit, they have demonstrated the effectiveness of their IT programs and the metrics by which they measured it."

Ray Bjorklund, senior vice president at Federal Sources Inc. of McLean, Va., said some of the decreased spending could be attributed to OMB's emphasis on better management.

"Many public IT companies have been reporting sluggish government spending to their investors," he said. "We believe this sluggishness could be due in part to OMB's exercising its oversight of IT programs. OMB may be slowing down the apportionment on major IT programs to ensure proper emphasis on program management due to some major missteps in government IT projects over the last few years."
Written: by Jason Miller is a senior writer with Government Computer News.



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DIGITAL DIVIDE - AFRICA

Local Languages Demand More Space on the Internet
African Woman and Child Feature Service
A bid to have African languages join the likes of English and French in the Internet is being blocked by information experts from the West as lacking in commercial value.

A group of African linguistics and technology experts at a recent African Regional Preparatory Conference for the World Summit on Information Society (WSIS) in Accra, Ghana, say they have already developed special characters that can now help these languages be used on the World Wide Web.

They argue that the use of languages such as English has played a big role in the development of Western countries.

Another reason the Westerners are opposed to African languages being put on the Web, they say is their structure with some having characters and sounds in their alphabet that are not recognisable in the coding system of the Internet.

Therefore, the continent should continue expressing itself through appropriate languages in social and economic development.

According a Prof Mwasoko from the University of Dar-es-Salaam, Africa's political elites are a problem than a solution, as they too oppose, for reason well known to them, the use of these languages on the Internet, Prof Salam Diakite, Director of Research and Documentation, African Academy of Languages said the only way to make African languages accepted in the cyberspace is to transact business in those languages.

In Kenya, for instance, information on tourism and tea products should be in a local language or in Kiswahili, which Microsoft is going to launch officially on the Internet between April and May this year.

Other communities like the Maasai Kikuyu, Luhya, Luo, or Turkana can also use their languages on the Internet when communicating with their family members, relatives or transacting business with the outside world.

If this happens, then those from Europe and America will have no otherwise but to learn how to use these languages. But this can only occur if special characters and sounds like those found in the Gikuyu dialects are accepted by Unicode consortium.

Based in the USA, and with organizations such as Microsoft and International Business Machines (IBM) as members, Unicode Standard defines how characters and sounds of different languages are represented in modern software products and standards.

Language experts think bantu speaking communities will be better placed to put their languages on the Internet because they can adopt the Kiswahili characters and sounds, which Unicode has approved.

Addressing participants at the Accra conference, Mark Lange, senior attorney at Microsoft, said they support the idea of African languages on the internet.

But he was fast to add that African countries need to put in place proper standards for the idea to be supported by other stakeholders in the information society.
Currently, there are plans to put in place an African standardization and certification centre for those who want to use their vernacular languages on the website.

Dr Shem Ochuodho, a computer expert, says any attempt to address over 80 per cent of Africans who live in the rural areas on how to achieve the Millennium Development Goals (MDGs), can, among other things, be achieved by using their languages online.

"The only problem is the existence of a few words from certain African languages whose sounds cannot be accepted by the computer," says Prof Diakite.

African linguistics at the African Academy of Languages have therefore developed special characters for these languages, and now want them accepted by Unicode.
This list of African characters is then to be officially submitted to the committee of ISO standardization so that the characters can be added to their list as pre-composed African characters.

Once this happens, letters in the African language in use will have to be mapped into the keyboards of computers. The type of fonts used will also have to change depending on the language being used.

In addition, a dictionary of the African languages has to be developed to aid those people who are going to have problems in expressing themselves in these languages.

So far, less than one percent of African languages have developed these requirements and gotten access to the cyberspace. In Ethiopia, where the local and national language, Amharic, is in use, attempts have been made to use it on the computer.

Experts there have been struggling since the 1980's to make the computer recognize the Amharic characters. Since they have been accepted by Unicode, Dr Atnafu says they have in place a Content Management System, which allows them to use both Amharic and English on the computer.

In South Africa too, local languages have been put in use on the Internet.
Whereas these two countries have made headway in placing their local languages on websites, other African countries face a double challenge.

Most of them have to find ways of ensuring their people speak and use their own language when communicating economic, social and political issues.
As a first step, the conference has recommended that each African country should introduce the teaching of an African language from the primary school level up to the university as a linguistic bilingual policy.

This language is to be taught alongside English or French and both are to be examinable subjects at both primary and secondary school levels as well as in colleges.

African Union is expected to take up the issue, and impress upon member states to implement the recommendation. Likewise, to accelerate the use of local languages in ICTs, the Union is to declare 2006 as the year of African languages.

As the momentum to use Kenyan and other African languages on the website picks up, linguistics are now warning parents who pride in their children's fluent foreing languages to start a rethink.
They argue that children instructed in their mother tongue are more likely to grasp what they are taught than when the instructiona are in English or French.
Written: by Arthur Okwemba in Nairobi



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TECHNOLOGY – OPEN SOURCE

Government moves into the Open
Perhaps the clearest sign yet that open source has gone mainstream occurred last Thursday when a group of government officials met to discuss the technology and practically nothing was said about the fact that the software is free.

Many interesting points were made Thursday in Waltham, MA, at the National Government CIO Summit on Open Source, but the most important came towards the end of the meeting when Thom Rubel of Meta Group and Debra Anderson, CIO, Novell, both emphasized that open source is a compelling technology for the public sector because of the value it brings to the business needs of government agencies. Anderson pointed out that her budget has shrunk by one-third in the past three years - much like public sector IT budgets - but because of open source her staff is able to deliver the value that Novell's business units need to succeed in a highly competitive market.

Rubel explained that in order for open source to succeed in government, the public sector has to understand it's true worth. "It's not about lower cost, it's about business value and what it takes to achieve political outcomes," he said. Rubel reminded the audience that government first used computers to simply automate existing processes. It then used the Internet to place some of the same automated processes online. Little was done to change the value equation, he argued. But open source can change that if used in the right way. "Just don't over promise and don't make it an either-or proposition between open source and proprietary solutions," he cautioned.

Peter Quinn, CIO, Massachusetts, made the same point, emphasizing that his state's lead in understanding and adopting open source was not in reaction to the dominance of one or two proprietary vendors. Rather, it was an effort to face certain key facts in the world of IT and government. First, "the cost of government is not sustainable in its present form," he said. Second, software has increasingly become a commodity. Open source is accelerating that trend.

As a result, government no longer should be trapped into procuring expensive, customized solutions, he argued. While open source is attractive because of its lower upfront costs, the real value lies in the collaborative principles on which it has been developed. The more agencies and governments share open source applications, the less likely the public sector will end up having to pay for so many different solutions, wasting taxpayer money.

Some have branded the notion of developing and then sharing software for free as some form of communism. But Quinn argued that if one state developed a better electronic licensing system or voter registration system using open source and then shared it with other states, it was an exercise in democracy through the exchange of information in an open society underpinned by reliable technology.

As radical as that sounds, Quinn said the Government Open Source Collaborative he founded isn't out to challenge the commercial software industry but to take advantage of government innovation so that "we as technologists [can] finally break the back of the ineffectiveness, the inefficiency and the stupidity of the silos of information in government."

Legal Thorns
One of the thorniest issues government faces in regards to open source is licensing. Many assume that open source licensing is better than proprietary licensing, but that's not necessarily true, said Linda Hamel, general counsel for the Information Technology Division in Massachusetts. Open and proprietary licenses are different and both have their advantages and disadvantages.

She bemoaned the fact that few in government are familiar with open source licensing. For example, Hamel pointed out the common misconception that the general public license or GPL is the open source license. Not so. "The GPL is the most common license for all open source software, but it is not the most common license for the most commonly used open source software," she explained.

While the differences between GPL and other types of open source licenses are complex, she urged the audience to spend time familiarizing themselves with the issues and risks that can occur should a government enter the field as an open source software developer. As just one example, she pointed out that states, unlike commercial software firms, cannot give 3rd party intellectual property infringement indemnification. Bottom line: make sure your jurisdiction's general counsel is well grounded in the nuances of open source licensing and its impact on proprietary software licenses.

Growing Market Share
The summit, which was presented by the Center for Digital Government and Government Technology magazine and sponsored by Novell, attracted dozens of government officials from around the country and from Canada. They learned that open source is no longer just about Linux, the well-known operating system, but it is also about databases and other applications as well. It's even about Internet browsers. Firefox, released last year, gained market share from Microsoft's Explorer at the rate of one percent per month for the first five months of its availability, according to Matt Asay, Novell's director of Linux Business Office. Just about every popular open source product also showed significant growth curves. Meanwhile, IBM is pouring $2 billion into its marketing campaign for Linux.

Leon Shiman, president of Shiman Associates Inc., software architect for Linux and Unix and a founding member of X.Org, one of the oldest open source consortiums, pointed out that Europe and, in particular, the European public sector, has strongly embraced open source. He said the interest was partly due to Europe's desire to thwart America's sizeable lead in the technology market. It also has to do with Europe's willingness to embrace collaborative projects and support them with public money rather than let the marketplace decide which products will survive and prosper.

But Shiman sees a darker side to this trend. First, Europe's strong support for open source means that innovation is taking place overseas, not here in America. Second, the entire open source movement has been sustained by volunteers, but Shiman said many open source developers in America could no longer afford to continue to participate. As a result, they were either migrating to Europe, where the public sector is willing to pay for their work, or they were taking jobs in other fields.

Ready, willing & able?
The Center for Digital Government has polled the nation's state, city and county governments and found that less than 50 percent have set their IT standards and architectures across the enterprise. That lack of readiness will hold back adoption of open source, according to Paul Taylor, the Center's chief strategy officer. But he reminded the audience that open source isn't cool because it's free, "but because it's open." More importantly, "collaboration is the DNA of open source software." Collaboration enhances the quality of the software, he added.

But if free accessibility makes open source cool and collaboration is the genius behind it's rise, a number of government officials wondered if they had developers on staff who were ready, willing and able to participate in writing and sharing open source code on a volunteer basis. On one hand, Novell's Anderson said she was pleasantly surprised by the number of people on her staff who were contributing to open source initiatives during their off hours. But on the other hand, a government CIO pointed out that he had very few workers on staff who had the capability, let alone time, to contribute to open source development. Others agreed with that less than optimistic assessment

Quinn best summed up the attitude government needs to take when it considers realm of open source by quoting from John F. Kennedy: "There are risks and costs to a program of action. But they are far less than the long-range risks and costs of comfortable inaction."
Written: by Tod Newcombe



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E-GOVERNANCE/E-GOVERNMENT

Controlling Cyber Dissidents?
Blogging is not only a well-established element of pop culture, it has become a tremendously influential communications mechanism. As early as March 2002, an article in Wired discussed the blogging "revolution" and declared that blogging "could be to words what Napster was to music - except this time, it'll really work."

Although in America blogging is an essential component of political discourse, in some countries it is a crime. For example, the most recent Internet Under Surveillance report by Reporters Without Borders notes that two Internet users in the Maldives "have been sentenced to life imprisonment for criticizing a dictatorship...that has been in power for the past 40 years."

Reporters Without Borders is holding a press event to highlight their concerns "that the countries that least respect free expression are playing a dominant role in the preparation..." of the United Nations World Summit on the Information Society (WSIS) conference.
To call much needed attention to the role of various dictatorships in helping set global internet policies, Reporters Without Borders will be represented at a preparatory conference being held in Geneva February 18-25 by "by a delegation of Chinese, Iranian, Tunisian and Maldivian cyber-dissidents and bloggers so that they can describe the violations of online free expression that take place in their countries."

As a Reporters Without Borders official explained, "We would like to put a face to the repression against Internet users in some of the countries that will be parading at the WSIS."

The Reporters Without Borders press conference will be held on February 17th at 2:00 pm at Charly's Multimedia Check Point in Geneva. The press conference is being held at an internet café "so the cyber- dissidents can support their presentations with concrete examples of censorship."

All internet stakeholders who value freedom of expression, including corporations, governments NGOs, and individuals, should pay close attention to both the press conference and the WSIS process and not take their freedom for granted.
Written: by LuisB



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GENDER ISSUES – TECHNOLOGY MARKET

Of Gadgets and Gender
With women buying half of all consumer electronics, retailers and manufacturers are tailoring their products and marketing accordingly.
Five years ago, Samsung Electronics wanted to test how its phones, TVs, and home-theater systems would be received by consumers. So it showed them to focus groups comprised of its target consumer: Adult males aged 25 to 50.

The makeup of these groups has changed since then -- they're now 50% women. "We now recognize that the female consumer is influencing, if not controlling, 50% of all consumer-electronic purchasing today," says Jonas Tanenbaum, senior marketing manager of flat-panel displays for Samsung Electronics America in Ridgefield Park, N.J.

Sharper on prices
Samsung isn't the only consumer-electronics company to recognize the growing power of the female consumer. In November, retailer Tweeter Home Entertainment started using female voices in its radio and TV advertising. It also changed its catalogue covers to show a woman in a home-theater setting after internal research showed that females were twice as likely to buy a flat-panel TV as males.

Indeed, companies across America that make and sell flat-panel TVs, digital cameras, and computers are rapidly rethinking how they design, produce, and market to their consumers.

Recent research from the Consumer Electronics Assn. shows that women spend $50 billion and buy almost half of all electronic goods sold in the U.S. At the same time, they're on par with men in their ability to understand gadgets and are also early adopters, according to the CEA. However, the difference is that they're more likely than men to shop around for better prices and demand reliability, ease of use, and style.

Tailored information
This has led Best Buy to adopt the "Jill Initiative," a program to target its typical female customer. "Jill" is a trend-savvy working suburban mom with a fair amount of disposable income, who's likely to shop at Target as opposed to Wal-Mart.

The consumer-electronics retailer found that women read Target's newspaper inserts for ideas about how to better design their homes and use Best Buy's inserts for research and price comparison. So, Best Buy is using scenes that depict family life in its inserts and peppering them with gift ideas for children and friends.

As Best Buy discovers more of women's wants and needs, it's rolling out newer programs and advertising in magazines like Real Simple and Better Homes & Gardens. Last year, it launched 68 concept stores in California and Nevada, where personal assistants whisk female shoppers into their domain and provide them with information tailored to their needs.

The lure of faux croc
Rather than throw numbers at the shoppers about the size of a hard drive or the number of pixels on a camera, these representatives walk them through the uses of a computer or a camera and how it meets their needs. "We're enabling her transformation into a big-time electronics buyer by talking her language," says Nancy Brooks, vice-president and segment leader for the women's initiative at Best Buy.

Some companies are catering to the female shopper even earlier in the process -- during the design phase. X2, a computer manufacturer in Irvine, Calif., observed that notebooks were often designed with a male user in mind. "Women are asking for a lighter notebook, with a better keyboard that has all the cool features and reflects their style," says Rex Wong, president of X2.

So the outfit came up with a $1,299 notebook that weighs 4 pounds, has the latest Intel processor, a CD burner, and a built-in memory card. Starting in late February, buyers will have four colors to choose from -- pink, powder blue, pale green, and silver -- and can match the computers with stylish totes that come in suede, faux croc, or leather.

Style and substance
With women in mind, Dell has jacked up the number of accessories on its site. "We started offering stylish jackets in different colors for the Pocket DJ at the direct request of our women customers," says Gretchen Miller, a director of product marketing for the PC maker in Austin, Texas.

Other products designed to meet the demands of female buyers include: Vision Art, a framed piece of art that rolls up to reveal a plasma TV at the touch of a button ($3,500), from Solar Shading Systems, and GlamCam, a high-resolution Web camera ($99.99) from General Electric that flips open to reveal a mirror on one side and a color LCD screen on the other.

"It's a top-of-the line camera that comes in a stylish red and fits into a woman's purse," says Jason Trice, director of product development at Jasco, which makes consumer-electronic products for GE.

Women clearly place a premium on the combination of style and substance, function and fashion. And companies are increasingly finding that it's a winning combination.
Written: by Pallavi Gogoi



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ENVIRONMENT - AID

Lessons from the Tsunami
There are many lessons that emerge from the tsunami that brought such devastation and loss of life to Asia. It demonstrated the power of globalization, as television brought vivid pictures of the destruction to homes around the world. Indeed, it is at times like this that the world truly does seem like a global village.
Of course, it seemed to take somewhat longer for news of the extent of the disaster to reach the Crawford, Texas, ranch of President Bush. But, in the end, he decided to interrupt his vacation and offer amounts of aid that were successively revised upwards, in a global competition which promised to benefit those who were desperate for help.

America’s aid still appeared niggardly when compared with the amounts offered by countries with a fraction of America’s economic wealth. Lightly populated Australia offered more than twice America’s assistance, Japan promised almost 50% more, and Europe pledged more than five times as much. This led many observers to reflect on the fact that the world’s richest country was in general the most miserly in foreign assistance – all the more so in comparison to the amount it spends on war and defense.

The disaster was international, so it was appropriate that the United Nations take the lead in coordinating the relief effort. Unfortunately, in an effort that was widely seen as another attempt to undermine multilateralism, the US tried to lead a “core group” driving the assistance program, ignoring ongoing efforts within the region and at the UN. Whatever America’s motive, it later wisely decided to join the UN effort. The Bush administration’s face-saving rhetoric that it had rushed to push together the core group in the absence of other efforts was quietly let to pass.

The response of some countries within the region was truly impressive, showing how far they had come in establishing efficient and effective governments. Myriad details were addressed: Thailand flew ambassadors to the affected part of the country to help attend to the needs of their citizens, helped those who lost their money and passports return home, provided health care for the injured, set up systems to identify bodies, and dealt with the difficulties posed by shortages of body bags and the lack of cold storage facilities.

Countries, like Thailand, that felt that they could handle the finances on their own asked that assistance be directed to others. They did ask one thing: a reduction of tariff barriers and greater access to markets abroad. They didn’t want a handout, only a chance to earn income. The response, at least at the time of this column’s writing, has mostly been deafening silence.

On the other hand, the G-7 made a truly important contribution in offering debt relief. This is especially important for Indonesia, which must service a debt of $132 billion (of which $70 billion is owed to public creditors or guaranteed by government agencies). Even without the tsunami, this debt burden would have been an enormous hindrance to the country’s development as it finally recovers from the aftermath of the 1997 financial crisis.

Indeed, there is a compelling case to be made for Indonesian debt relief in any case, given that much of the debt was incurred in loans to the corrupt Suharto government. Lenders knew, or should have known, that not all of the money was going to help Indonesian development. Moreover, some of the debt was incurred as part of the 1997-1998 crisis, which was aggravated and deepened by IMF-imposed policies.

No one pretends that we can prevent or alter the forces of nature. Rather, we have to learn to cope with them. There are now calls for improved tsunami early warning systems. But in one area, global warming, we have already received an early warning. Most countries have recognized this, coming together in Rio and Kyoto to do something about it - not enough, but the Kyoto protocol was intended only as a start. Sadly, global warming will likely destroy some of the same countries ravaged by the tsunami. Low lying islands like the Maldives will become submerged.

We are, however, still not a global village. After first disputing that there was scientific evidence of the problem, the largest polluter in the world, the US, is now simply refusing to do anything about it (other than preaching voluntary restraint - of which there is little evidence, at least in America). The international community has yet to figure out what to do with an aberrant member who fails to live up to its responsibilities as a global citizen.

Optimists say that technology will solve the problem. Realists observe that in the long race between the environment and technology, it appears that technology has so far been losing. Nature, as we have learned from the tsunami, has its own timetable. Unless we learn how to respect it, we will all miss the boat.
Written: by Joseph E. Stiglitz.
Note: Joseph E. Stiglitz, a Nobel laureate in economics, is Professor of Economics at Columbia University and was Chairman of the Council of Economic Advisers to President Clinton and Chief Economist and Senior Vice President at the World Bank. His most recent book is The Roaring Nineties: A New History of the World’s Most Prosperous Decade.



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OIL MARKET - EUROPE

European Reliance on Oil Imports to Grow
By the middle of the next decade, only Norway will remain a net oil exporter from among European countries, Exxon Mobil Corp. Chief Executive Lee Raymond said during a conference late Wednesday in London.

The U.K., Denmark and the Netherlands, which are currently net exporters, will cease to be so by the middle of the next decade, Raymond said.

As the ExxonMobil executive prepared to begin his speech, some Greenpeace protesters were led away from the hotel banquet room by security guards. Outside, amid very tight security and heavy police presence, activists protested against what they said were ExxonMobil's role in global warming.

ExxonMobil later issued a statement addressing the protests. The company said, 'We take the issue of climate change seriously and are taking many real and positive actions to address the risk it causes.'

Leading off his speech, Raymond also addressed oil companies' role in communities and the environment.
'Oil companies have many responsibilities, and we affect societies in a large number of ways,' he said. 'We employ people, we help local communities, and we earn money for our shareholders, and our operations and products affect the natural environment.'

Returning to his outlook for the world oil industry and U.K. markets, Raymond said the U.K. already has among the highest costs in the world for production.

Raymond opposed tax increases on the U.K. oil industry.
Raymond projected that the U.K.'s gas production would 'go from 10 billion cubic feet a day to 7 billion cubic feet a day at the end of the decade and less than 3 billion cubic feet a day in 2020.'
By 2030, he said, four-fifths of the world's energy needs will be met by fossil fuels.
The combination of economic growth and population increases can be expected to lead to a rise in primary energy demand of about 50% over the next 25 years, Raymond said.
'This means that by 2030, overall global energy demand will be the equivalent of about 335 million barrels a day oil equivalent,' the ExxonMobil chief executive said. 'This is a rise from today of more than 100 million barrels a day (oil equivalent) - a huge figure.'
Written: by Benoit Faucon



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TECHNOLOGY – CHIP INDUSTRY

Intel brings 64 bit to desktop
Intel has rolled out its last full slate of single core Pentium 4s for the desktop as it gears up for the debut of its dual core line sometime in the second half.

Monday’s launch saw updates to the Pentium Extreme Edition line, aimed at gamers and power users, and the Pentium 4 6xx range aimed at the volume business and consumer markets.

Both lines are built on a 90 nanometre process and feature 2MB of level two cache and Execute Disable Bit technology, which should protect against buffer overruns. The Extreme Edition’s front side bus remains at 1066MHz, while volume business and consumer buyers will have to continue scraping by with an 800MHz bus.

Monday's launch finally brings Intel’s EM64T technology to the desktop, putting it on a par with AMD's hybrid platform.

Clock speed on the Extreme Edition has been cranked up to 3.73GHz from the current 3.46GHz. The 6xx line features five models, ranging from 3GHz to 3.8GHz.

Enhanced Intel SpeedStep Technology - the power management used in the vendor’s mobile line - has also been incorporated into the Extreme and 6xx lines. Power consumption, and associated problems of heating and cooling, has been one of Intel’s bugbears as it jacked up the clockspeed of its chips.

The 6xx products will co-exist alongside the existing 5xx sequence for the first half of this year. Sometime in the second half Intel’s dual core products are scheduled to appear at the top end of the business market, along with new chipsets for the 6xx product range. Dual core will also appear in both the high-end and mainstream consumer markets in the second half, according to the roadmaps Intel showed yesterday.
Intel executives yesterday were reluctant to set a date for the demise of mainstream single core parts, saying that the single core products would be available for “some time”.



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