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Mon, 31 Mar 08
Apple Updates iPhone SDK Amid Complaints
http://www.newsfactor.com/story.xhtml?story_id=59038
Apple released the second beta version of its software development kit for the iPhone Thursday. The new version contains one significant upgrade: the Interface Builder, a visual editor that lets developers drag and drop icons to easily create the user interface in their applications.

Some developers had been holding off working on iPhone apps until the interface tool arrived.

While several big-name companies have signed on to develop applications for the iPhone, many independent developers have expressed dismay at the level of access the SDK permits.

Microsoft: iPhone Developer

The latest major company to express interest in iPhone development is Microsoft, which, Fortune reported earlier this week, has been poring over the SDK. "It's really important for us to understand what we can bring to the iPhone," said Tom Gibbons, vice president of Microsoft's specialized devices and applications group. "To the extent that Mac Office customers have the functionality they need in that environment -- we're actually in the process of trying to understand that now."

Microsoft is one of the largest developers for the Mac outside of Apple and it knows about mobile applications, so it would be well positioned to deliver iPhone apps. "We do have experience with that environment, and that gives us the confidence to be able to do something," Gibbons said. "The key question is, what is the value that we need to bring? We're still getting comfortable with the SDK, right? It's just come out."

Besides Microsoft Office for Mac, Microsoft may well bring its TellMe voice-recognition application -- acquired a year ago -- to the iPhone. If Apple allows applications to do voice recording and location identification, "We're absolutely going to get a version [of TellMe] out there as soon as we can," said Gibbons.

iPhone as IBM PC

But not everyone is thrilled with the SDK. Writing on...

Mon, 31 Mar 08
Dell Rolls Out Sub-$900 Laptop with Blu-ray Drive
http://www.newsfactor.com/story.xhtml?story_id=59037
With the high-definition format wars over, Dell is offering a laptop with Blu-ray for under $900. Aimed at movie buffs, the Inspiron 1525 with optional Blu-ray drive starts at $879.

Dell's reasoning: As retailers and video-rental companies expand their high-definition offerings, Blu-ray is the new "must-have" technology to help consumers get the most out of the viewing experience.

"Like everyone else, Dell was inhibited by the dual-standard situation. Dell wanted to make sure it didn't overcommit before the technology decision was made between Blu-ray and HD DVD," said Roger Kay, principal analyst at Endpoint Technologies Associates. "Now that it is clear what the standard is, Dell is building to that. Of course, Dell has always been a major supporter of Blu-ray."

The Inspiron Details

The Inspiron 1525 laptop features a 15.4-inch high-definition, wide-aspect display with 720p resolution. It also includes an HDMI port for connectivity to high-resolution displays and HDTVs.

The Blu-ray disc drive is fully backward compatible, according to Dell, and will play as well as burn traditional DVDs and CDs. Consumers can also chose a Blu-ray burner drive for backing up and storing digital files. A Blu-ray disc will hold up to 50GB of data, compared to 8.5GB for the typical DVD disc.

Dell's Inspiron 1525 with Blu-ray incorporates Broadcom Media PC technology that allows PCs with integrated graphics to play high-definition video. The high-definition video playback is enabled through a built-in dedicated accelerator located in a mini-card slot.

Like all Dell consumer laptops, the Inspiron 1525 features Dell MediaDirect technology which promises one-button instant access to media files, even if the system is powered off or in hibernate.

Dell is offering optional accessories to enhance the movie-watching experience, including a slim travel power adapter, a remote control that slips into the ExpressCard slot, and Creative noise-isolation earphones.

A Regular Business Alignment

David Daoud, manager of...

Mon, 31 Mar 08
MacBook Air Hacked -- But It Was the Browser's Fault
http://www.newsfactor.com/story.xhtml?story_id=59034
First he hacked Apple's iPhone. Now he's hacked Apple's MacBook Air. But some analysts are warning not to be quick to judge security based on Charlie Miller's work.

Miller, a researcher at Independent Security Evaluators, won $10,000 and a laptop Thursday at the CanSecWest security conference's Pwn 2 Own hacking contest. He did it by hacking the MacBook Air -- and it took him all of two minutes.

CanSecWest organizers offered a Sony Vaio, Fujitsu U810 and a MacBook as booty for hackers who could find a way to breach security and gain access to the contents of system files using a previously undisclosed zero-day attack. A zero-day attack is the exploitation of unpatched software vulnerabilities.

Picking on Apple

The first day of the contest, hackers were only allowed to hack into the computers over a network. No one was able to claim the prizes. On the second day, the rules changed. Contestants were allowed to use the machines to visit Web sites and open e-mail messages. The new rules were a game-changer for Miller, who almost immediately found a way in.

Miller is familiar with Apple's architecture. He is perhaps best known as one of the first researchers to hack Apple's iPhone. This time around, he hacked the MacBook Air by visiting a Web site with exploit code he created. That code allowed him to take control of the computer as onlookers enjoyed the show. Jake Honoroff and Mark Daniel were on the Miller team from Independent Security Evaluators.

"They were able to exploit a brand-new zero-day vulnerability in Apple's Safari Web browser. Coincidentally, Apple has just started to ship Safari to some Windows machines through its iTunes update service. The vulnerability has been acquired by the Zero-Day Initiative, and has been responsibly disclosed to Apple, who is now working on the issue," according to...

Mon, 31 Mar 08
Motorola's Mobile-TV Handheld Will Debut Overseas
http://www.newsfactor.com/story.xhtml?story_id=59033
Motorola has taken the wraps off the Mobile TV DH02 -- a handheld entertainment center capable of displaying live and prerecorded digital-TV programs as well as other multimedia content.

Smaller than a paperback novel and tipping the scales at 240 grams, the Mobile TV DH02 is designed to display both live and prerecorded digital video at a high-quality screen refresh rate of 25 frames per second. Even better, flip the handset from a vertical to a horizontal orientation, and the screen automatically changes to a landscape mode that offers the same panoramic 16:9 aspect ratio offered by today's high-definition TV broadcasts.

However, American consumers should not expect to see Motorola's new mobile-TV device on store shelves any time soon. Motorola says the DH02 is far more likely to take its inaugural bows overseas.

Easier Live TV Viewing

The Mobile TV DH02 sports a 4.8-inch LCD display with a screen resolution of 480x272 pixels and support for up to 16 million colors. The device's touch-screen user interface features intuitive click, drag and scroll icon-based menus, while the device's built-in Bluetooth radio makes it a snap to wirelessly connect with compatible stereo headsets.

To make viewing live TV even easier, the DH02 comes with a built-in electronic program guide and an automatic channel-scan capability (UHF channels 21 to 69). Several personal-video recording (PVR) capabilities are also on tap, such as time shift, live pause, and frame grabbing.

The new handheld device fully supports technology for storing digital-TV programs, music (AAC and MP3) and photos (JPEG, GIF and PNG) on microSD memory cards. And the essential GPS technology is also onboard for enabling voice-activated directions and the display of points of interest on Tele Atlas map views.

Motorola Vice President Navin Mehta said the DH02 also incorporates a 2.5G/3G mobile back channel capability. The delivery...

Mon, 31 Mar 08
Blocking Foes Aren't Ready to Trust Comcast
http://www.newsfactor.com/story.xhtml?story_id=59032
In what might be seen as an exercise in crisis management, Comcast finally agreed Thursday to alter the way it manages its network, committing to a "protocol-neutral" method in which any traffic throttling would occur only at peak times and without targeting certain applications.

Comcast has targeted large media files using the BitTorrent peer-to-peer protocol. News reports of the practice resulted in a public outcry, a Federal Communications Commission public hearing and renewed efforts to pass a Net-neutrality law.

In a joint press release with BitTorrent, Comcast said it will switch to the new technique by the end of the year, resulting in a "traffic-management technique that is more appropriate for today's emerging Internet trends."

FCC Chairman Concerned

BitTorrent CTO Eric Klinker praised Comcast's new "understand[ing of] changing traffic patterns," saying Comcast "wants to collaborate with us to migrate to techniques that the Internet community will find to be more transparent."

FCC Chairman Kevin Martin offered tepid praise for Comcast's announcement and expressed concern that the current discriminatory practice will continue into 2009. "I am pleased that Comcast has reversed course and agreed that it is not a reasonable network-management practice to arbitrarily block certain applications on its network," Martin said in a written statement. He commended the company for "admitting publicly" its practices.

Martin expressed concern, however, that Comcast won't end the discrimination against BitTorrent until the end of the year -- and even longer in some markets. "While it may take time to implement its preferred new traffic-management technique, it is not at all obvious why Comcast couldn't stop its current practice of arbitrarily blocking its broadband customers from using certain applications. Comcast should provide its broadband customers as well as the commission with a commitment of a date certain by when it will stop this practice," he said.

FreePress Calls for FCC...

Mon, 31 Mar 08
Apple's Aperture Now Allows Plug-In Photo Tools
http://www.newsfactor.com/story.xhtml?story_id=59031
Apple introduced Friday a plug-in architecture for its Aperture photo application. The plug-ins will let photographers utilize third-party imaging tools within Aperture, whose 2.1 version is now available as a free update to Aperture 2.0 owners. The update comes only about six weeks after the release of 2.0.

Dodge & Burn

One Apple-developed plug-in is available now. Called Dodge & Burn, it provides brush-based tools for dodging or lightening, burning or darkening, contrast, saturation, sharpen and blur.

Apple Vice President Rob Schoeben said Aperture 2 has won over the most demanding photographers because of its image quality. He added that the new open plug-in architecture will let users "access an entire industry's worth of imaging expertise without ever leaving Aperture." According to news reports, a full software development kit for third-party developers will be released.

As an example of how Aperture is now all a photographer will need as a software tool, Apple pointed to John Stanmeyer, a contributing photographer for Time and National Geographic. He said in a statement that he "can't imagine when I'll have to open any other application to tone my images."

The installed plug-ins can be summoned by clicking on one or more images within Aperture and choosing from a menu that allows the plug-in to be applied to either TIFF or RAW images.

Viveza, Power Stroke, Others

Apple noted that a variety of third-party companies are developing plug-ins, including the Viveza plug-in from Nik Software, which allows for precise control of color and light in an image. Picture Code's Noise Ninja is for advanced high ISO noise analysis and reduction.

A plug-in coming from Digital Film Tools, called the Power Stroke, offers a stroke-based interface for quick masking and other targeted adjustments. The dpMatte from dvGarage provides what Apple described as "a high-performance chroma key tool for creating seamless composites."...

Mon, 31 Mar 08
AT&T Will Offer Mobile TV Similar to Verizon's Service
http://www.newsfactor.com/story.xhtml?story_id=59015
Television programs on cell phones and other mobile devices took another step toward becoming widespread Thursday with AT&T's announcement that it will launch its Mobile TV with FLO in May.

The mobile-TV service from the largest U.S. mobile carrier will provide high-quality, live television content and sporting events from leading networks, as well as programming from two exclusive channels. The networks include CBS Mobile, Comedy Central, ESPN Mobile TV, Fox Mobile, MTV, NBC 2GO, NBC News2Go, and Nickelodeon. AT&T already offers music services and Web access as it tries to boost its revenue from content while phone-service prices continue to drop.

Offered on Two Devices

The content of the two channels that will be available only to AT&T customers was not announced. Mobile TV with FLO is provided by MediaFLO USA, a wholly owned subsidiary of Qualcomm.

The TV service will be available initially only on two devices from AT&T, the LG Vu, which has a large interactive touch screen, and the Samsung Access, which features a large landscape display.

Avi Greengart, an analyst with industry research firm Current Analysis, noted that, with the possible exception of the two exclusive but undefined channels, AT&T's service is essentially the same basic service offered by Verizon Wireless.

He described MediaFLO as "the best mobile-TV service I've seen," adding that the "video is smooth, changing channels is instantaneous, and it feels like TV." He also pointed out that it isn't carried over the AT&T or Verizon networks, but over MediaFLO's own network. As a result, the coverage for the MediaFLO services is not the same as the phone coverage on either AT&T or Verizon's networks, Greengart said.

Slow Mobile-TV Growth

He said it's probably best that AT&T waited to launch MediaFLO because it gave the service time to work out "the kinks," including contracts with more content providers. But he...

Mon, 31 Mar 08
Google Click-Through Rates Down
http://www.newsfactor.com/story.xhtml?story_id=59013
New data confirming slowing growth in Google Inc.'s paid clicks renewed debate Thursday on Wall Street over whether the Internet search company's revenue can quickly adjust to changes it made in how it generates clicks.

Citing data that comScore Inc. released after the market closed on Wednesday, analysts said growth in Google's click-through rate has nearly ground to a halt.

Google's stock dropped $16.09, more than 3.5 percent, to $442.10 in afternoon trading.

The click-through rate grew 3 percent in February compared to a year earlier, and January saw no increase compared to January 2007. Several months earlier, the rate was growing 25 percent to 40 percent compared to a year earlier. The new data is in line with click-through declines Google reported last quarter.

Google, which gets paid when users click on a sponsored ad that comes up as the result of a Google search, has reported steadily rising per-click revenue.

The Mountain View-based company said in January that the drop in click-through rates is a result of its efforts to boost the usefulness of each click to its advertisers' sales performance. For instance, the company decreased the space around a word that would result in a click, so more clicks would be intentional.

Analysts disagree on how long it will take Google's per-click revenue to adjust to any increased value per click it has created.

Rob Sanderson, an analyst with American Technology Research, said per-click revenue will rise immediately if advertisers see more value in each click, because they'll pay more for them at auction.

"It's not clicks that advertisers are really buying, it's what those clicks get them, which is sales conversions," said Sanderson.

Colin Gillis, an Internet analyst at Canaccord Adams, also was optimistic.

"It's very difficult to spin this as positive data point, but it also doesn't mean the world is ending," Gillis said.

The click-through...

Mon, 31 Mar 08
AMD Intros Triple-Core Processor for Hard-Core Users
http://www.newsfactor.com/story.xhtml?story_id=59010
AMD on Thursday introduced the first triple-core x86 processor for the desktop that it hopes will become the ultimate mainstream desktop platform. The Phenom X3 8000 series triple-core processor targets PC gamers and digital-media enthusiasts. The processor promises improved multithreaded application performance over dual-core processors at the same clock speed.

"In 2007, AMD committed to delivering AMD Phenom triple-core processors in Q1 2008 and today the company makes good on that promise," said Vice President Bob Brewer. "AMD understands that today's PC applications are best accelerated with a range of multicore products from quad- to triple- to dual-core processors."

A Digital Media Delight?

When paired with the AMD 780 series chipset, AMD said Phenom X3 processors can deliver a full high-definition experience with support for the latest formats, including VC-1, MPEG-2 and H.264, on a mainstream PC. When used with the AMD Unified Video Decoder, AMD said its new solution offers a smooth HD viewing experience -- less lag, stalling and dropped scenes -- in the latest Blu-ray titles.

Desktop PCs with the AMD Phenom X3 processor and AMD 780G chipset also offer DirectX 10 game compatibility, the company said, offering casual gamers lifelike 3D graphics and dynamic interactivity.

What's more, AMD said, gamers looking to scale their performance with the addition of a discrete graphics card can accelerate their performance with ATI Hybrid Graphics Technology. According to AMD, this technology can harness the graphics power of both an ATI discrete graphics card and the motherboard GPU in tandem, delivering in some applications up to 70 percent improvements in 3D performance.

The ATI Advantage

Charles King, principal analyst at Pund-IT, called the announcement interesting. The industry, he said, is beginning to see there is a natural role for hybrid systems that combine common computing processes with higher-end digital media and digital media features.

This specialized...

Mon, 31 Mar 08
Rambus Wins Memory-Chip Trial
http://www.newsfactor.com/story.xhtml?story_id=59002
Rambus Inc. scored a key victory Wednesday in its nearly decade-old fight with memory chip makers when a jury found the company did not engage in monopolistic behavior by patenting technologies that eventually became standard in memory chips.

Shares of the Los Altos-based company shot up $7.25, or nearly 39 percent, to $25.86 during regular-session trading on the news. They gained another $1.02 to $26.88 after hours.

The jury's decision could help Rambus as it tries to collect millions of dollars in royalties on patents some of the biggest memory chip makers claim were fraudulently obtained.

Rambus makes most of its money by licensing patented chip designs that were created by its engineers and used widely by other companies in their DRAM chips, or dynamic random access memory, the most common type of memory chip used in personal computers.

Rambus had about $180 million in revenue in 2007.

However, Rambus still faces major court battles over its patents, including its attempt to overturn a 2006 Federal Trade Commission ruling that the company deceived a standards-setting committee and created a monopoly in the memory chip industry. Rambus is hoping for a decision by this summer on its appeal.

After a seven-week trial, a jury in U.S. District Court in San Jose decided Wednesday in Rambus' favor on all three counts it was deliberating, according to Thomas Lavelle, Rambus' general counsel. The jury deliberated for just one day.

In the lawsuit, originally filed in 2000, chip makers Micron Technology Inc., Hynix Semiconductor Inc. and Nanya Technology Corp. argued that patents held by Rambus for key technologies now included in their chips should be considered invalid. And they said they shouldn't have to pay royalties to Rambus.

The companies say Rambus engaged in illicit behavior in filing the patents for technologies used in DRAM chips.

The FTC found Rambus deliberately withheld information...

Mon, 31 Mar 08
Technology Makes It Easier To Unlock Mobile Phones
http://www.newsfactor.com/story.xhtml?story_id=59000
It is just another cell phone shop on a side street in Milan's Chinatown, but come here often enough and buy a plastic phone cover or little trinket each time and sooner or later you will have earned the confidence of the twentysomething behind the counter. After that, all you need is euro 20 to get your phone unlocked.

Unlock, hack, crack -- the terms are numerous, the result is the same: a mobile phone that will work with any SIM card on any carrier's GSM network in any country around the world. And just as you can get it done at the little Milan shop squeezed between a Chinese restaurant and a food store, there are people who will do it for a fee in most cities from here to Hanoi.

Wireless carriers often offer customers cheap or free phones in exchange for signing multiyear contracts, but then the phones are technologically "locked" -- the subscriber cannot cancel the contract and sign up for service with another company.

But the temptation of better service, lower prices, a newer phone or just the desire to show that it can be done has motivated people to unlock phones pretty much since the first locks appeared.

About 70 percent of the phones sold in European countries where operators cover all or part of the cost of the handset are sold locked because the operators want to recoup their subsidies, said Carolina Milanesi, a research director with Gartner in Britain. In the three European countries where handsets are usually sold at market prices -- Belgium, Finland and Italy -- probably 30 percent of the phones are sold locked, she said.

Milanesi said that almost all phones are locked in the United States when people sign up with an operator; likewise with Japan, although the situation varies elsewhere in Asia.

If...

Mon, 31 Mar 08
Can Sprint's WiMax Alliance Last?
http://www.newsfactor.com/story.xhtml?story_id=58997
It's crunch time, yet again, for Sprint's troubled next-generation wireless network -- and the unlikely collection of on-again, off-again partnerships the company needs to get the technology off the ground.

Google and the nation's two biggest cable TV companies are among the investors finalizing negotiations to provide up to $2.5 billion for Sprint and a smaller wireless provider named Clearwire to build the nationwide network, according to a source close to the talks. "The deal is about 90 percent done," but could fall apart at the last minute before a planned Apr. 1 announcement, this person says.

The proposed alliance with Comcast, Time Warner, and a smaller provider called Brighthouse Networks would revive the cable industry's soured relationship with Sprint, whose financial travails have forced it to find more backing for the new network based on a Wi-Fi relative called WiMax. It would also finally bring to fruition a lengthy dalliance between Sprint and Clearwire that seemed to unravel late last year.

What binds these bedfellows? One motivation is their common interest in forging a bulwark against the biggest and most formidable telecom service providers, AT&T and Verizon.

Joining Forces?

Under the proposed deal, Sprint would spin off its Xohm-branded WiMax business and merge it with Clearwire to create what they hope will be the first company to deliver so-called 4G, or fourth-generation, speeds to mobile devices across the U.S. Sprint and Clearwire have been exploring ways to join forces for such a venture for two years, with the possibilities ranging from simple roaming agreements to a full-fledged merger of WiMax efforts. But to date they haven't been able to agree on funding or management for the $5 billion project.

Indeed, it still wasn't immediately clear whether a Sprint or Clearwire executive would take the lead in Xohm's operations, nor where the new company would be...

Mon, 31 Mar 08
Analysts See Problems Despite Motorola Breakup
http://www.newsfactor.com/story.xhtml?story_id=58995
On Wednesday, Motorola announced plans to split itself into two independent companies. On Thursday, the industry continued debating whether that is the right move.

The move is part of Motorola's efforts to reposition its mobile-devices and broadband and mobility-solutions businesses. But the split won't happen until 2009.

"We remain committed to improving the performance of our mobile-devices business by delivering compelling products that meet the needs of customers and consumers around the world," Motorola CEO Greg Brown said.

As part of Motorola's effort to deliver market-winning products, Brown added, the company has undertaken a global search for a new chief executive for the mobile-devices business.

"We believe strongly in our brand, our people and our intellectual property, and expect that the mobile-devices business will be well positioned to regain market leadership as a focused, independent company," Brown said.

Focusing on the Digital Home

According to Strategy Analytics, Motorola's decision to break up the company is a step in the right direction. The move will enable Motorola to focus on two of its core competencies -- mobile handsets and the digital home.

Peter King, director of the Strategy Analytics Connected Home service, has long argued that Motorola remains less than the sum of its parts where its consumer strategy is concerned.

"With leading positions in mobile and connected home, Motorola should be driving the market forward with original consumer technology concepts," King said. "But we see little sign that it is maximizing that potential. Separation should help the company direct its efforts more effectively toward broadband and digital opportunities."

Focusing on the Core Competency

Beyond the opportunities for Motorola in the mobile and connected-home areas, Bonny Joy, a wireless analyst at Strategy Analytics, expects the spin-off of the mobile division to enable Motorola to focus on its core competency in cellular handsets -- with one caveat.

"We must...

Wed, 26 Mar 08
Yahoo Joins Google and MySpace in OpenSocial Foundation
http://www.newsfactor.com/story.xhtml?story_id=58972
Yahoo has hooked up with Google and MySpace as a founding member of the OpenSocial Foundation. The foundation is an outgrowth of the OpenSocial network, which Google launched last year to build open standards for social-networking sites.

"Industry consortiums such as this often start slowly and evolve over time. So far, OpenSocial is rapidly growing and adapting, but still in the early stages," Wade Chambers, Yahoo vice president for platforms, wrote on Yahoo's corporate blog. But OpenSocial is "no longer a trial balloon -- it's for real," Chambers wrote. "We are taking this opportunity to help ensure Web sites and developers feel confident using OpenSocial as the building blocks for their new social apps."

Yahoo sees OpenSocial as a natural extension of the Web services and APIs it offers through its Yahoo Developer Network. "We think OpenSocial will continue to fuel this innovation and make the Web more relevant and more enjoyable to millions," Chambers wrote.

Core Elements

"Together with the OpenSocial community, we are setting new industry specifications for social Web-application development," said Steve Pearman, MySpace senior vice president of product strategy. The foundation will allow participants to "work together to provide developers with the tools to make the Internet move faster and to foster more innovation and creativity."

"OpenSocial has been a community-driven specification from the beginning," said Joe Kraus, Google's director of product management. "The formation of this foundation will ensure that it remains so in perpetuity. Developers and Web sites should feel secure that OpenSocial will be forever free and open."

The OpenSocial movement is based on several core elements: Public specifications available under a Creative Commons license, community involvement to shape direction, and an open-source reference implementation called Shindig, which is being developed in the Apache Software Foundation incubator.

Breaking Down Silos

OpenSocial attempts to address the problem of integration in the social-networking...

Wed, 26 Mar 08
Google Renews Push to Access White Space
http://www.newsfactor.com/story.xhtml?story_id=58971
Google may not have walked away with assets in the latest U.S. wireless-spectrum auction, but the Internet giant is moving to get in on the action. Google has revived its pitch to use TV "white space" -- vacant TV airwaves -- to offer Internet service.

In a letter, Google asked the Federal Communications Commission to open up the white space for unlicensed use. The Internet giant hopes to foster widespread, affordable Internet access over the TV airwaves.

"As Google has pointed out previously, the vast majority of viable spectrum in this country simply goes unused, or else is grossly underutilized," wrote Richard Whitt, Google's Washington telecom and media lawyer. "Unlike other natural resources, there is no benefit to allowing this spectrum to lie fallow."

A Black and White (Space) Pitch

From Google's perspective, the space between channels 2 and 51 on TV sets not connected to cable or satellite services -- known as white space -- offers a "once-in-a-lifetime opportunity to provide ubiquitous wireless broadband access to all Americans." And, Whitt wrote, opening the unused airwaves would "enable much-needed competition to the incumbent broadband service providers."

Google is not pushing alone. The White Spaces Coalition, an industry consortium that includes Google, Dell, HP, Intel, Philips, Earthlink, Samsung and Microsoft, is pushing to use the analog frequencies with a promise to deliver speeds up to 100 Mbps at lower costs than current market options.

Most FCC commissioners have said they would support the use of white space as long as the technologies that run over the spectrum do not interfere with TV broadcast signals.

Broadcasters Unite in Opposition

However, television broadcasters, sports leagues, wireless microphone manufacturers, and others have long asserted that devices operating over unused TV channels either interfere with TV signals or fail to detect those signals in order to avoid creating interference.

"The bottom line here is...

Wed, 26 Mar 08
IBM Invests in Open-Source Database for Enterprises
http://www.newsfactor.com/story.xhtml?story_id=58970
IBM is among the investors participating in a $10 million boost for open-source vendor EnterpriseDB, which offers enterprise-class products based on PostgreSQL. Also investing are Charles River Ventures, Fidelity Ventures and Valhalla Partners, the company announced at the Open Source Business Conference in San Francisco.

The influx is the latest step in EnterpriseDB's relationship with IBM. The companies have worked together on versions of EnterpriseDB's Advanced Server product for Linux on IBM System z mainframes and for AIX on IBM System p servers.

"This latest round of investment in EnterpriseDB is an acknowledgment of our business model, technical innovation, and emergence as a leading force in the PostgreSQL community, including our work in the areas of database compatibility and performance," said Andy Astor, EnterpriseDB CEO.

Oracle Competitor

IBM hailed the investment as part of its long-standing commitment to open source. "Global organizations of all sizes rely upon open-source technologies to free information from proprietary silos and use it in innovative ways across their businesses," said Inna Kuznetsova, IBM's director of Linux strategy

The new investment brings total venture funding for four-year-old EnterpriseDB to $37.5 million. EnterpriseDB now boasts 200 enterprise companies and will be profitable within a year, Astor said.

EnterpriseDB is positioned as cheaper but competitive with industrial-strength Oracle and more powerful than the free open-source MySQL database. Sun recently purchased MySQL for $1 billion.

IBM's investment in EnterpriseDB "can be seen as a slap of sorts at the Sun acquisition," said Charles King, principal analyst with Pund-IT, in a telephone interview.

"EnterpriseDB was a direct competitor of MySQL," King noted. "EnterpriseDB feels theirs is the better offering, especially for transactional environments." When Sun acquired MySQL, it left EnterpriseDB as the only free-standing, enterprise-class open-source offering.

Deep Open-Source Roots

IBM called the investment "another example of IBM's long-standing commitment to open standards." But while IBM has...

Wed, 26 Mar 08
XM-Sirius Merger Faces a New Hurdle: FCC Approval
http://www.newsfactor.com/story.xhtml?story_id=58969
On Monday, the Department of Justice approved the merger of XM Satellite Radio and Sirius, former rivals in the satellite radio market. But the companies still have one last obstacle to clear: Federal Communications Commission approval.

"After a careful and thorough review of the proposed transaction, the division concluded that the evidence does not demonstrate that the proposed merger of XM and Sirius is likely to substantially lessen competition, and that the transaction therefore is not likely to harm consumers," the DOJ said.

Despite a green light from the DOJ, observers are skeptical that the FCC will allow Sirius to complete its $4.59 billion purchase of XM. The companies claim widespread support for the deal, but others have monopolistic concerns about the merger. The deal was first announced in February 2007.

Pushing the Satellite Agenda

Sirius and XM, both money-losing ventures, are touting lower prices and increased programming choices that they say the merger will mean for consumers. The companies have urged the FCC to approve the merger without delay.

The companies unveiled an array of new programming options, including two first-of-their-kind, à la carte packages where consumers can individually select the channels they wish to receive.

A public-opinion survey found that more than 70 percent of respondents thought the new packages would be a good deal for consumers. The companies currently offer 100 channels and charge about $13 a month.

Support for the Merger

Members of Congress from both political parties have urged approval. Two former FCC chairmen and former FCC staff members have voiced support. Leading car manufacturers have all cited consumer benefits inherent in the merger.

The nation's leading voices for minority audiences, including the National Association for the Advancement of Colored People and the League of United Latin American Citizens, have asked the FCC for approval. And religious leaders and family values advocates have...

Wed, 26 Mar 08
Computer Problems Take Out DVD Renter Netflix
http://www.newsfactor.com/story.xhtml?story_id=58967
If you were expecting that DVD of The Bourne Ultimatum today, it could have been delayed by technical problems at Netflix. The popular DVD-rental site experienced a computer breakdown for most of Monday, from about 7 a.m. to about 6:30 p.m. Pacific time, according to a spokesperson. The problems reportedly affected both the Web site and internal computer systems.

Unexpected Maintenance

Netflix's systems go down for maintenance once a week in the middle of the night, but the company said the maintenance mode unexpectedly started Monday. The company has not revealed the reason.

As a result, DVDs that were to be mailed on Monday were to go out Tuesday, as the outage also affected some distribution centers. Netflix did not specify what percentage of expected shipments to its 7.5 million customers were on time or delayed. However, the company said no stored information, such as subscribers' queue lists, was lost.

The Web site also suffered an 18-hour downtime last July, following heavy traffic resulting from lowering prices, but the Monday's glitch was more extensive than any in the company's nine-year history.

In July's glitch, the company's stock fell seven percent, but with its stock price rising, Netflix ended Monday with its stock up five percent.

'Large Base of Loyal Customers'

One reason the outage probably won't have a lasting effect, said JupiterResearch analyst Bobby Tulsiani, is because of the Netflix brand's strength.

"Even the best Web sites, like eBay or YouTube, have technical problems sometimes," he noted. He added that, as with other strong brands, Netflix "has built up a large base of loyal customers," and its customers will understand that things like this can happen -- as long as it's not too often.

Netflix published an emergency notice on its site during the shutdown, along with a Customer Service phone number, and it noted that there were still...

Wed, 26 Mar 08
Some Sites Object To Google's 'Search-Within-Search'
http://www.newsfactor.com/story.xhtml?story_id=58953
Google's new search-within-search feature, introduced earlier this month, may help users -- but it's not being welcomed by some businesses whose sites are featured. When a user selects a popular site selected by Google for this function, such as Wal-Mart or Best Buy, a separate search box opens and allows the user to search individual pages on that site.

It's the online equivalent of going to a store and asking for a product or category, such as a specific Sony camera or just digital cameras, rather than first asking the entire Web. The difference is that you remain on Google, outside the store's site.

Competing Ads, Lost Traffic

One would think a major retailer would welcome such targeted searching of its domain. But Google search-results pages have ads, often hawking the wares of competing retailers.

Additionally, the search-within-search feature keeps users on Google's pages, so the traffic is mostly Google's, not the retailer's.

According to an article in The New York Times, which itself gets a search-within-search link, Google said it has not received many complaints from companies. But the Times cites executives and observers who find the feature objectionable.

Feature Can be Turned Off

Some observers have noted that the function also bypasses the "learn from past behavior" feature that some larger sites offer. This diminishes the retailer's ability to direct the user toward the product being sought and robs the user of a more directed search.

Some retailers are asking the search giant to turn this search-within-search feature off for their sites. For instance, the feature does not work for Internet retailing giant Amazon.com, which has apparently requested exclusion. According to news reports, Google says it has honored requests from some businesses, although the names were not revealed.

Google has said the feature is added when its indicators suggest a user might benefit from search drill-downs within...

Wed, 26 Mar 08
WiMAX Ready To Go Despite Australian Problems
http://www.newsfactor.com/story.xhtml?story_id=58952
Australian wireless network operator Buzz Broadband told attendees at an international WiMAX conference in Bangkok this month that it had experienced insurmountable problems with WiMAX. The problems included covering distances of more than two kilometers, reaching indoor locations more than 400 meters from the transmitter, and integrating VoIP telephony.

According to an Australian report cited by The New York Times, Buzz Broadband CEO Garth Freeman said his company was forced to move to a mix of other technologies after its WiMAX trials "failed miserably."

However, a number of WiMAX networks in Asia, Africa, Eastern and Western Europe and North America have not seen similar problems, said Gartner Vice President Ian Keene. "Instead, we are seeing those networks expanding as conformance-tested products become available," he added.

"There certainly isn't any universal opinion that something is fundamentally wrong with WiMAX," Keene said. "Any technology can produce poor performances if you don't get it right."

Important Distinctions

Sprint spokesperson John Polivka said two important distinctions need to be drawn between the unsuccessful trials conducted in Australia and the successful launch of WiMAX systems in the U.S. and South Korea.

"Buzz Broadband was working with a fixed WiMAX installation in the 3.5-GHz spectrum, which is in stark contrast with Sprint's use of mobile WiMAX technology in the 2.5-GHz spectrum," Polivka said.

WiMAX systems running at 2.5 GHz attain better building penetration than those operating in the significantly higher 3.5-GHz spectrum, Polivka explained. "Fixed systems are also heavily dependent on line of sight, whereas mobile WiMAX does not," he noted.

Polivka cited the trials that Sprint and its partners conducted in Chicago last October as an example of what WiMAX can do. "In the thick of an urban environment, and even underground in some places," Polivka said, "the signals were continuously available with no disruption." He also noted...

Wed, 26 Mar 08
Airline Debuts In-Flight Mobile Phone Service
http://www.newsfactor.com/story.xhtml?story_id=58950
The friendly skies just got a little noisier. Emirates Airline, a Dubai-based carrier, now allows mobile phone calls during its flights -- and more airlines are moving in the same direction.

The airline is using equipment from AeroMobile that allows voice calls, SMS text messaging, and other applications using a GSM phone, according to David Coiley, vice president of external relations at AeroMobile.

"We prioritized GSM phones because we uniquely can operate over the existing Inmarsat satellite communication system installed on over 2,000 wide-body airliners around the world," he said. "Those airliners will typically fly on long-haul intercontinental routes, and GSM tech is the appropriate technology for the devices that passengers bring with them on that type of aircraft."

U.S. Airlines Next?

CDMA phones, common in North America, may in the future be able to take advantage of in-flight mobile services if the Federal Communications Commission (FCC) lifts its ban on in-flight calls. Piggybacking on the Inmarsat satellites helps circumvent concerns that the use of wireless devices in-flight may cause "interference to wireless networks on the ground," which, according to an FCC consumer advisory, is the reason that cell-phone use is prohibited on planes.

Coiley said that data from the Emirates flights may help debunk some of the etiquette concerns that were raised when the FCC considered dropping its ban, adding that he thought the concerns were "somewhat overstated, without some of the commentators knowing all of the details with regard to how these services are implemented and what can be done to encourage appropriate behavior." Coiley added, "I think people are a little more sensible than some would give them credit for, and the appropriate behavior will emerge anyway."

Coiley said that there will always be a finite amount of bandwidth available on an aircraft, "so the one thing that will not...

Wed, 26 Mar 08
Replaying System Crashes Can Pinpoint Problem
http://www.newsfactor.com/story.xhtml?story_id=58940
Anyone who uses a computer knows what it's like to have the system crash. Crashes are the digital world's addition to that short list of inevitables, death and taxes. But what if you could record the crash and play it back, like a video recorder for software?

That idea inspired two software engineers, Jonathan Lindo and Jeffrey Daudel, to devise such a product. They have succeeded, and are now moving from the niche market where they proved the idea and onto a bigger stage.

System crashes and other software flaws are more than an annoyance. A 2002 study by the National Institute of Standards and Technology in the United States estimated that software flaws cost the economy there as much as $59.5 billion a year.

For software developers, the flaws that cause crashes rank among their biggest problems, especially the ones that cannot be reproduced, like the noise in the car engine that disappears when you visit the mechanic.

Lindo says he and Daudel found themselves overwhelmed by bugs they could not find while working together at an Internet start-up in 2002. "We were spending almost all of our time not fixing the issues, but trying to get to the point where we could just see the issue, and we said, 'Wouldn't it be great if we could just TiVo this and replay it?'" Lindo recalls.

Innovation by analogy is a powerful concept, says Giovanni Gavetti, an associate professor at the Harvard Business School who, with his colleague Jan Rivkin, has published research on how businesses can use analogic reasoning as a strategic tool. Human beings are analogy machines, he notes, dealing with new information by comparing it to things they already know something about.

It would take time for Lindo and Daudel to prove that their analogy worked. They were tackling a daunting problem --...

Wed, 26 Mar 08
Dailymotion Takes on YouTube
http://www.newsfactor.com/story.xhtml?story_id=58939
In a gray bunker of a building with a graveyard as its neighbor, a freshly hired strike force of Internet executives, programmers and advertising representatives is mounting a grand mission to take on a global behemoth: Google's YouTube.

This is the new international headquarters of Dailymotion, an online video-sharing company, in the north of Paris. In the sprawling landscape of Internet video sites, Dailymotion ranks a distant second, according to figures from the Internet audience tracking company ComScore. But in France, it has managed to pull ahead of YouTube, the only competitor that has managed to do so in any major market. That success has encouraged Dailymotion to expand in other places, including the United States and Britain.

"YouTube is the dominant player and other players are quite distant, but Dailymotion is the one player that has been able to counter that trend," said Piers Stobbs, vice president for marketing at ComScore.

Fueled by the spread of broadband, video is one of the fastest-growing areas on the Internet, with "Internet television" services like Joost and Babelgum, video-sharing sites like YouTube and Dailymotion, and video sites from traditional broadcasters all competing for audiences. Investment is driven by the prospect of new revenue from advertising and product placement, even if hopes have so far mostly gone unfulfilled. With more than 80 percent of Internet users viewing online video in Britain, France and Germany, Europe has emerged as an important battleground.

YouTube, which Google bought for $1.65 billion in 2006, and Dailymotion are locked in a fierce struggle for market leadership in France. Dailymotion overtook YouTube in February, with 10.2 million unique visitors, compared with 8.8 million for YouTube, according to Nielsen, another audience tracking service. But worldwide, YouTube remains the Godzilla of video-sharing sites, with 258 million unique visitors in January, compared with 32 million for...

Wed, 26 Mar 08
Media Companies Battle Web Portals on Ads
http://www.newsfactor.com/story.xhtml?story_id=58937
Traditional media companies trying to stem the flow of advertising dollars to Google and other large Internet companies are increasingly building ad networks of their own, anchored by their brands.

The latest, Forbes Inc., announced Monday that it will start selling ads this spring for about 400 financial blogs. In recent months, Conde Nast, Viacom Inc., CBS Corp. and other major media companies also have unveiled topic-specific ad networks to lure advertisers that want to buy more ads than any single site can sell.

If newspapers, magazines and broadcasters cannot expand online ad inventory, they are "under threat of becoming less and less relevant to the advertiser," said Russ Fradin, chief executive of Adify Corp., whose technology runs ad networks for Forbes and others.

But these media networks -- some linking fewer than a dozen hand-picked Web sites -- may have a tough time competing with the larger networks of thousands assembled by Google Inc., Yahoo Inc., Microsoft Corp. and Time Warner Inc.'s AOL.

Those companies have been expanding, too, spending at least $11 billion collectively to buy smaller ad networks and technologies -- and in Microsoft's case, also bidding more than $40 billion for Yahoo.

"As our technology has continued to advance, we've gotten better and better," said Lynda Clarizio, president of AOL's emerging Platform A advertising unit. "We can handle a lot of demand from advertisers."

The expansion drive by both sides comes as Internet users increasingly divide their time across scores of sites large and small. Advertisers would rather not deal with thousands of individual Web sites. Media companies and Internet portals alike are promoting networks as a way to reach larger audiences with "one-stop" ad buys.

So far, the portal ad networks have largely succeeded in selling their affiliates' leftover ad inventory at discounted rates and sharing revenue.

Now, by employing targeting techniques such...

Wed, 26 Mar 08
EA CFO Warren Jenson Leaving
http://www.newsfactor.com/story.xhtml?story_id=58936
Warren Jenson, the chief financial officer of Electronic Arts Inc. since 2002, is leaving the video game publisher in the midst of its hostile buyout bid for smaller rival Take-Two.

EA did not give a reason for Jenson's departure; a spokeswoman said Monday it was a "mutual decision" between him and Chief Executive John Riccitiello. After leaving the company in 2005, Riccitiello rejoined EA as CEO in April 2007, replacing Larry Probst, who'd been at the company's helm for 16 years.

"It's pretty clear that he's building his own team," said Wedbush Morgan analyst Michael Pachter. EA also named a chief operating officer earlier this month, hiring John Pleasants, who also heads the company's global publishing operations.

The company said Monday it plans to announce a new CFO "shortly."

Redwood City, Calif.-based EA has offered to buy "Grand Theft Auto" publisher Take-Two Interactive Software Inc. in a $2 billion tender offer that expires April 11. EA spokeswoman Holly Rockwood said Jenson's departure is not related to the Take-Two bid, which turned hostile earlier this month after Take-Two repeatedly rejected the $26-per-share offer as the wrong price at the wrong time.

Jenson, 51, will stay to help the company close its fiscal year, which ends this month. While EA didn't say whether it has found a replacement, Pachter said the way the company's press release is worded "means they have somebody."

Since joining EA, Riccitiello has reorganized the company into a city-state model, with four divisions and distinct, independent development studios. He is focusing on slashing spending at a time when the cost of developing new games is skyrocketing well into the millions.

Jenson's replacement, Pachter said, will have to be a pragmatic, hands-on, "almost dictatorial" CFO, to execute Riccitiello's spending cuts. Jenson served as finance chief at a broad range of companies, including Amazon.com, before joining EA....

Wed, 26 Mar 08
More Europeans Online Thanks to Broadband and 3G
http://www.newsfactor.com/story.xhtml?story_id=58902
More than 50,000 European homes and offices added a high-speed broadband Internet connection every day last year, the European Commission said Wednesday.

Increasing competition has cut prices to new lows as Internet speeds increase, it said, while mobile Internet 3G services doubled last year to 88 million users, some 20 percent of the EU's population.

Denmark, Finland and the Netherlands now top a world league table for the percentage of people with broadband Internet, it said, although the European Union as a whole lags behind other major world regions with a "broadband penetration rate" of 20 percent.

More than half of broadband connections have speeds of 2 megabytes to 10 megabytes per second although there is now a "significant amount" of connections with more than 10 megabytes per second.

Some 19 million broadband lines were added across Europe last year, generating revenues of EU62 billion (US$98 billion) for telecommunications companies.

But the EU executive again criticized former state telecoms monopolies for keeping a tight grip on the telecoms market, saying they hold nearly half of broadband lines across the EU.

It said newer rivals still have limited access to telecoms lines that would allow them to provide more connections to customers.

The European Commission also repeated a warning that mobile phone operators are charging customers too much for data roaming, using mobile Internet services and text messaging when they go abroad.

"If operators do not react by July 2009, regulation will be inevitable," it said.

Text messages made up 14 percent of telecoms companies' revenues in 2007.

The entire telecoms sector in the European Union was worth nearly EU300 billion (US$473 billion) last year, growing by 1.9 percent from 2006.

A large chunk of those revenues -- EU137 billion (US$216 billion) -- come from mobile phones. Prices fell 14 percent as the EU introduced a price cap on voice call roaming....

Tue, 25 Mar 08
Microsoft Offers Free Support for Vista SP1
http://www.newsfactor.com/story.xhtml?story_id=58951
There have been enough problems with the Service Pack 1 update for Windows Vista that Microsoft is offering free tech support to anyone having problems, company representatives said on the official Vista blog.

A new SP1-specific support site says the free, unlimited support is available until March 18, 2009. The site offers e-mail, chat and phone support. As of this writing, the site was reporting one-day delays for e-mail responses and an 18-minute delay for chat responses.

The hours for chat are 5 a.m. to midnight Pacific time weekdays and 6 a.m. to 6 p.m. on weekends. Phone support, at (866) 234-6020 is 5 a.m. to 9 p.m. weekdays and 6 a.m. to 3 p.m. weekends.

University Says No

The free support is apparently a response to widespread problems users have experienced in installing SP1. And just as with adoption of Vista itself, some enterprises are showing resistance to installing the major update.

The University of Pennsylvania is advising faculty and staff not to install SP1. The school's IT department said it will support Vista SP1 when it comes preinstalled on new systems, but "strongly recommends that all other users adopt a 'wait and see' attitude" toward updating, according to a university bulletin Friday.

Penn users should continue "to use previous versions of Windows XP and Windows Vista until after the initial bugs in SP1 are identified and fixed," the department said.

"Now that SP1 is available, I expect more and more companies to begin moving to Vista," said Charles King, princpal analyst with Pund-IT, in an e-mail. "However, given its complexity (compared to XP – with a new kernel, security features, and user interface), I expect vendors and others will also provide a number of Vista migration services, particularly for companies with hundreds or thousands of PCs."

Widespread Problems

Meanwhile, Vista users are angrily reporting on Microsoft blogs...

Tue, 25 Mar 08
Carl Icahn Seeks Data On Motorola's Mobile-Device Unit
http://www.newsfactor.com/story.xhtml?story_id=58949
Billionaire financier Carl Icahn has filed suit in Delaware Chancery Court seeking to compell Motorola to disclose internal documents on its mobile-device business. He said he wants "to investigate whether and to what extent the board of directors of Motorola failed in their duties as directors in supervising management and setting policy and direction."

Icahn ultimately hopes to force Motorola to divest its struggling handset business, which he sees as hurting the company's bottom line.

"2008 was supposed to be a successful and profitable year in mobile devices with the potential to achieve 10 percent operating margins in the near future," Icahn said. "Instead, the results are a stockholders' nightmare."

To further enhance his clout, Icahn recently raised his ownership stake in Motorola from 5 percent to 6.3 percent, and he is seeking to place four outside executives on Motorola's board. "We intend to share with Motorola's stockholders information obtained pursuant to the request as part of our proxy battle with Motorola," Icahn said.

Strategic Alternatives

Motorola announced in January that it would be evaluating ways to help its mobile unit recapture growth and profitability. More recently, CEO Greg Brown noted that the strategic alternatives under consideration -- sell the mobile-device business, spin it off or fix it -- are not mutually exclusive options.

"I think they are building blocks," Brown said. "But obviously no decision has been made and we are still evaluating the strategic alternatives."

Gartner Research Director Carolina Milanesi believes Motorola's January announcement was intended to buy the company time by keeping "investors a little bit more happy and calm." However, she warned that the continuing uncertainty is hurting the company's relationships with wireless operators worldwide.

"I think we are now starting to see the operators being a little bit wary about value in the future and will be more cautious with...

Tue, 25 Mar 08
'Stealth' Safari Installation Draws Fire for Apple
http://www.newsfactor.com/story.xhtml?story_id=58948
Apple is under attack -- from a competing browser maker. Mozilla CEO John Lilly on Friday blasted Apple for including the Safari browser in its iTunes automatic update service for Mac and Windows operating systems. Mozilla makes the open-source Firefox Web browser.

"What Apple is doing now with their Apple Software Update on Windows is wrong. It undermines the trust relationship great companies have with their customers, and that's bad -- not just for Apple, but for the security of the whole Web," Lilly wrote in his blog.

Breaching a Trust

From Lilly's perspective, it's important for users to be protected from vulnerabilities. Apple, he argues, is breaching a trust.

"There's an implicit trust relationship between software makers and customers in this regard: As a software maker we promise to do our very best to keep users safe and will provide the quickest updates possible, with absolutely no other agenda," Lilly said. "And when the user trusts the software maker, they'll generally go ahead and install the patch, keeping themselves and everyone else safe."

Apple has made it incredibly easy -- as the default -- for users to install ride-along software that they didn't ask for, and maybe don't want, according to Lilly. "This is wrong, and borders on malware distribution practices," he wrote. "It's wrong because it undermines the trust that we're all trying to build with users."

Lilly's blog post stirred up dozens of comments.

"This is just a sick way of tricking users to download their browser by making it seem as if an update is available for a piece of software already installed. I bet it even takes over as the default browser afterward, which would look very bad on Apple," a commenter named "Kurt" wrote on the Mozilla blog. Meanwhile, "Ian Hayward" said he is shocked and feels "a little less...

Tue, 25 Mar 08
Patch Possible as Microsoft Confirms Word Vulnerability
http://www.newsfactor.com/story.xhtml?story_id=58947
Microsoft has confirmed reports of a Word vulnerability that opens the door for an attacker to exploit a system. A vulnerability in the Microsoft Jet Database Engine, which shares data with Access, Visual Basic and third-party applications, makes it possible.

Panda Software, McAfee and Symantec have all pointed to Microsoft Jet Database Engine flaws in past months, but Microsoft does not acknowledge the bug as a critical remote-execution vulnerability because .mdb files are considered unsafe and Outlook is configured to block Access files when they are received as an attachment.

However, Elia Florio from Symantec's security response team doubts Microsoft's stand is good enough. According to Symantec's security team, the attacker needs only to find a trick to force the Jet library to open a file and run malicious code.

"Some social engineering and a little help from Office applications will work out well in this specific attack. In fact, it is possible to call MSJET40.DLL directly from MS Word, without using Access at all," Florio said. "In this attack, the .doc file uses mail-merge functionalities to import an external data-source file, and so it effectively forces MS Jet to load the malicious Access sample."

Older Operating Systems Vulnerable

Customers using Microsoft Word 2000 Service Pack 3, Microsoft Word 2002 Service Pack 3, Microsoft Word 2003 Service Pack 2, Microsoft Word 2003 Service Pack 3, Microsoft Word 2007, and Microsoft Word 2007 Service Pack 1 on Microsoft Windows 2000, Windows XP, or Windows Server 2003 Service Pack 1 are vulnerable to attack.

However, customers running Windows Server 2003 Service Pack 2, Windows Vista, and Windows Vista Service Pack 1 include a version of the Microsoft Jet Database Engine that is not vulnerable, according to a Microsoft security advisory.

"Microsoft is investigating the public reports and customer impact. We are also investigating whether the vulnerability can be exploited...

Tue, 25 Mar 08
Online Ad Sales Network Gains New Members
http://www.newsfactor.com/story.xhtml?story_id=58917
A group of newspaper publishers said Thursday it was joining an industry-backed online advertising sales effort aimed at winning more business from national advertisers.

The announcement adds 26 newspaper companies as affiliates to an ad sales network launched last month by Gannett Co., Tribune Co., Hearst Corp. and The New York Times Co. The newspapers owned by the new affiliates to the venture called QuadrantOne effectively doubles the size of the network to about 250 newspapers.

New members of QuadrantOne include several large newspaper companies including McClatchy Co., the No. 3 U.S. publisher by circulation; A.H. Belo Corp., owner of the Dallas Morning News; and Media General Inc.

The companies joining QuadrantOne are also in a separate consortium with the Internet company Yahoo Inc. to cooperate in other areas online, including classified job listings, search, posting news stories on Yahoo's news section and local online advertising.

QuadrantOne will create a centralized pool of standardized ad units from newspapers across the country that can be sold in blocks to large advertisers.

The goal is to simplify the process for large brand advertisers such as apparel companies to buy national online advertising on a large scale, without having to deal separately with many local media outlets.

QuadrantOne is owned by its four founding newspaper companies, but is actively seeking other newspapers to become affiliates to create a large pool of online advertising inventory.

A separate newspaper industry venture called the Newspaper National Network sells print and online ads across a network of papers, but that entity sells group ads on an ad hoc basis and doesn't have a central pool of ad units ready to be sold, as QuadrantOne does.

Rusty Coats, who is in charge of product development for Media General's online division, said the company was contributing advertising spots from its large-market properties, such as The Tampa Tribune's...

Tue, 25 Mar 08
Losing Wireless Battle May Be Google Win
http://www.newsfactor.com/story.xhtml?story_id=58916
Losing the battle for a prized piece of the airwaves isn't necessarily a setback for Google Inc.

If anything, Thursday's news that Verizon Wireless had won the government-run auction for a pivotal swath of spectrum may even have been the ideal outcome for Google.

That's because investors no longer have to fret about Google straying from its main business of Internet search to spend more than $10 billion buying and building a wireless network.

Yet Google still positioned itself to profit from the newly available airwaves by ensuring the bids for the so-called "C block" escalated to $4.6 billion. Reaching that price triggered a provision that requires the new wireless network to accommodate all mobile devices, including equipment using a software package called "Android" that is supposed to give Google a better opportunity to sell more advertising.

Verizon bid a total of $4.74 billion to win most of the C block, which Google hopes will make it easier for consumers to access its search engine and other products on "smart" phones and other mobile devices.

Google arguably would have been in an even better position in the mobile market if it controlled its own wireless network, especially one with the potential power the C block figures to offer. The 700 megahertz spectrum, to become available in February 2009, is expected to provide better wireless access because the frequencies travel long distances and easily penetrate walls.

But the time and money that would have had to be invested in the C block probably would have represented another millstone on Google's sagging market value, which has already plunged by $80 billion, or 37 percent, so far this year.

And any further erosion in Google's stock price would threaten to depress employee morale because virtually all of its nearly 17,000 workers own shares in the Mountain View-based company. Google shares...

Tue, 25 Mar 08
Gibson Guitar Sues Retailers Over Guitar Hero Video Game
http://www.newsfactor.com/story.xhtml?story_id=58915
Gibson Guitar Corp. on Thursday sued Wal-Mart Stores Inc. and five other major retailers that sell the Activision Guitar Hero game, claiming it violates a patent it holds.

A federal lawsuit filed Monday claims Wal-Mart, Target Corp., Kmart, Amazon.com, GameStop Corp. and Toys "R" Us should stop selling the game.

Gibson has already tried to stop video game publisher Activision Inc. from selling all versions of the game, claiming it too closely matches a musical virtual-reality patent from 1999.

The guitar company said in a released statement that it took "this action reluctantly, but is required to protect its intellectual property."

Earlier this month, Activision filed suit in California asking a federal judge to declare the game does not violate the patent.

Spokeswomen for Wal-Mart and Amazon.com said the companies do not comment on pending litigation. Officials with the four other retailers did not immediately return calls seeking comment.

Santa Monica, California-based Activision contends Gibson's patent assertions have no merit. Gibson has said it wants Activision to stop selling "Guitar Hero" until it gets a license under the patent.

"Our Guitar Hero retailing partners have done nothing wrong," Activision said in released statement. "We will confront this and any other efforts by Gibson to wrongfully interfere with Activision's relationship with its customers and its consumers."

Gibson attorneys sent Activision a letter in January accusing it of violating a patent titled "System and Method for Generating and Controlling a Simulated Musical Concert Experience," according to a lawsuit filed by Activision.

A copy of the patent dated Nov. 23, 1999, is included in Gibson's lawsuit. It describes a device that lets a user "simulate participation in a concert by playing a musical instrument and wearing a head-mounted 3-D display that includes stereo speakers."

The device also includes playback of audio and video of a prerecorded concert and a separate track of audio...

Tue, 25 Mar 08
Wikipedia Questions Paths to More Money
http://www.newsfactor.com/story.xhtml?story_id=58912
Scroll the list of the 10 most popular Web sites in the U.S., and you'll encounter the Internet's richest corporate players -- names like Yahoo, Amazon.com, News Corp., Microsoft and Google.

Except for No. 7: Wikipedia. And there lies a delicate situation.

With 2 million articles in English alone, the Internet encyclopedia "anyone can edit" stormed the Web's top ranks through the work of unpaid volunteers and the assistance of donors. But that gives Wikipedia far less financial clout than its Web peers, and doing almost anything to improve that situation invites scrutiny from the same community that proudly generates the content.

And so, much as how its base of editors and bureaucrats endlessly debate touchy articles and other changes to the site, Wikipedia's community churns with questions over how the nonprofit Wikimedia Foundation, which oversees the project, should get and spend its money.

Should it proceed on its present course, soliciting donations largely to keep its servers running? Or should it expand other sources of revenue -- with ads, perhaps, or something like a Wikipedia game show -- to fulfill grand visions of sending DVDs or printed books to people who lack computers? Is it helpful -- or counter to the project's charitable, free-information mission -- to have the Wikimedia Foundation tight with a prominent venture capital firm?

These would be tough questions for any organization, let alone one in which hundreds of participants can expect to have a say.

The system "has strengths and weaknesses," says Jimmy Wales, Wikipedia's co-founder and "chairman emeritus." "The strength is, we don't do anything randomly, without lots and lots of lots of discussion. The downside is we don't get anything done unless we actually come to a conclusion."

Even the foundation's leaders aren't unified. Florence Devouard, a French plant scientist who chairs the board, said she and other Europeans...

Tue, 25 Mar 08
Bill Seeks To Limit Web Data Tracking
http://www.newsfactor.com/story.xhtml?story_id=58908
After reading about how companies like Google, Microsoft and Yahoo collect information about people online and use it for targeted advertising, one New York State legislator said there ought to be a law.

So he drafted a bill, now gathering support in the New York State Legislature, that would make it a crime -- punishable by a fine to be determined -- for certain Web companies to use personal information about consumers for advertising without their consent.

And because it would be extraordinarily difficult for the companies that collect such data to adhere to stricter rules for people in New York alone, these companies would probably have to adjust their rules everywhere, which could effectively turn the New York legislation into a national standard.

"Should these companies be able to sell or use what's essentially private data without permission?" asked the assemblyman who sponsored the bill, Richard Brodsky, a Democrat from the suburbs north of New York City. "The easy answer is absolutely not."

Brodsky is not the only lawmaker with this idea. In Connecticut, the General Law Committee of the State Assembly has introduced a bill that focuses on data collection rules for ad networks, the companies that serve ads on sites they do not own.

The New York bill, still a work in progress, is shaping up as much broader. Although it is likely to see some tinkering before it comes to a vote, which Brodsky hopes will be taken this spring, it aims to force Web sites to give consumers obvious ways to opt out of advertising based on their browsing history and Web actions.

If it passed, computer users could ask that companies like Google, Yahoo, AOL and Microsoft, which routinely keep track of searches and surfing conducted on their own properties, not follow them around. Users would also have to give...

Sat, 22 Mar 08
Wells Fargo Offers Online Safe-Deposit Box
http://www.newsfactor.com/story.xhtml?story_id=58924
If you're security minded, you might keep your important paper documents in a safe-deposit box at your local bank. If those documents are digital, you can keep them in a virtual safe-deposit box so that they're not only secure, but also available from anywhere.

Wells Fargo Bank will soon offer its retail banking customers a personal online safe-deposit box that it calls "a natural extension" of the company's 156-year security legacy.

The Wells Fargo vSafe service is the first online storage solution offered by a financial services company, according to Katherine McGee, senior vice president of Wells Fargo's Internet Services Group.

Like other online storage solutions, vSafe offers accessibility from any computer with an Internet connection. Documents, PDFs, spreadsheets, and even media files can be stored. McGee told us that the bank did extensive research with its consumer and small-business customers and honed the product to match their needs. The offering is integrated with the Wells Fargo Online Banking service so that customers can have account statements automatically added each month

"It's secure online storage with an easy-to-use interface built for customers based on their needs," she said. The company offers a set of boilerplate folders to help customers get started quickly; there's also an option to create unique folders and subfolders. McGee said that online forms simplify the procedure of consolidating data from a plethora of sticky notes into one safe place (such as a PDF document). Users can add folders and upload files from any computer.

Security a Priority

With sensitive documents being uploaded and stored, security is naturally a priority to customers. According to McGee, vSafe "offers secure storage, and it's available through the Wells Fargo online banking session, so we leverage all the security we use for online banking," as well as additional measures that encrypt information as it crosses the Internet...

Sat, 22 Mar 08
Apple Uses iTunes to Put Fast Safari on Windows PCs
http://www.newsfactor.com/story.xhtml?story_id=58923
Windows users perfectly happy with their Firefox or Internet Explorer browsers have been surprised to find a new Web browser on their hard drives -- Apple's Safari 3.1. The browser was originally only for Apple's Macintosh computer.

The new browser arrived via Apple's software update feature, which is included in its iTunes software. iTunes boasts impressive penetration on Windows as well as Mac computers. Apple normally uses software update to deliver updates of the QuickTime media player, iPod software and iTunes.

But Apple confirmed Thursday that it is now delivering Safari through iTunes. "We are using software update to make it easy and convenient for both Mac and Windows users to get the latest Safari update from Apple," said Bill Evans, a company spokesperson.

Aggressive Stance

At last June's Worldwide Developers Conference, Apple CEO Steve Jobs reported that users were downloading one million copies of iTunes per day, half of them to Windows machines.

Jobs said at the time that he was interested in increasing Safari's market share, which was then at about five percent. "We know how to reach those users," Jobs said.

The new strategy indicates Apple is taking a more aggressive stance to leverage the broad success it has had with its iPod. Apple says the new Safari is 1.9 times faster than Internet Explorer 7 and 1.7 times faster than Firefox 2. Safari 3.1 also supports new video and audio tags in HTML 5, and so-called CSS animations -- created through the Cascading Style Sheets Web standard. It also supports CSS Web fonts.

Standards-Compliant

Support for standards, rather than proprietary tags, appears to be in vogue. Microsoft recently said IE 8, its next-generation browser, would shift to favor Web standards over Microsoft's proprietary technologies. There is a "concrete benefit to Web designers if all vendors give priority to interoperability around commonly...

Sat, 22 Mar 08
SlySoft Offers Blu-ray Copy-Protection Cracker
http://www.newsfactor.com/story.xhtml?story_id=58921
SlySoft is at it again. The Caribbean firm says it has broken the copy-protection technology used on some Blu-ray discs to prevent consumers and bootleggers from copying movie content. SlySoft is offering a 20 percent discount on its latest version.

Last year SlySoft launched HD-DVD-cracking software designed to let consumers decrypt HD-DVD movie discs and copy them. AnyDVD HD software cracked the Advanced Access System, a specification for managing content stored on HD DVDs.

SlySoft also produces several other copy-protection software tools, including CloneDVD to burn copies of DVDS, Game Jackal Pro, which burns CD games to the hard drive, and Virtual CloneDrive, which is virtual drive software. SlySoft could not immediately be reached for comment.

Focusing on Blu-ray

Now that Blu-ray is the clear winner in the high-definition format battle, SlySoft has turned its attention to the Sony format. The latest version, AnyDVD HD 6.4.0.0, promises to crack Blu-ray copy protection. SlySoft is peddling the program on its Web site for $47.

SlySoft's claims about its software appear to be accurate. The company has a track record for its ability to hack CD and DVD copy protection and let consumers clone the files. But Richard Doherty, an analyst at Envisioneering Group, said the program may not work with all Blu-ray discs.

"We don't have the package to know whether this works with a handful of discs or would work with the latest Blu-ray discs with Sony and Fox, but we are doing tests," he said. "We should have more information to report next week."

A Slew of Crackers

"AnyDVD HD comes with the same functionality as AnyDVD, but with additional features for full Blu-ray Disc and HD-DVD support, including decryption of Blu-ray and HD-DVD movies," the SlySoft Web site says.

Specifically, SlySoft is cracking BD+, a technology Macrovision developed. According to Macrovision, more than 20...

Sat, 22 Mar 08
University Bans Vista SP1 Upgrades as Problems Continue
http://www.newsfactor.com/story.xhtml?story_id=58920
Microsoft's Windows Vista Service Pack 1 is hitting more bumps in the road and institutions are beginning to weigh in. As one example, the University of Pennsylvania's IT department has reportedly issued a bulletin to faculty and students not to update with SP1, at least for the time being. The department has said it will support users who have Vista with SP1 preinstalled, however.

Major Driver Problems

Drivers are becoming a major issue. One of the reasons Microsoft delayed SP1's release was because of problems with drivers. New reports indicate that, while the actual number of problematic drivers may be small, as Microsoft indicates, their impact is not.

The drivers include those in a common Intel chipset, the 945G Express series, used in PCs from Gateway, Lenovo, Hewlett-Packard and others. Microsoft has recommended that all drivers be updated before installing SP1.

One central location for SP1 complaints, as well as some favorable comments, is Microsoft's Vista blog.

A commenter called rikki-UK sarcastically described Microsoft as "GENIUS at work" because it released the update two days before a long holiday weekend, thus limiting access to support. According to rikki-UK, the company issued advice to some users to replace an Ethernet card or a router, even though the same hardware worked fine on XP machines.

One user going by the name of bowlman posted Friday that he has had SP1 installed for two days and the "only problems" are that e-mail opens slower, Vista wants to do an error report when it closes, and the documents folder "wants to lock up and takes 10 minutes to close it down."

Exorcist Needed?

"Sometimes," posted a user called Microsoft News Tracker, "I think what Microsoft's Vista operating system really needs is an exorcist" because of the number of "unnatural occurrences plaguing it."

Laura DiDio, an analyst with industry research firm Yankee Group, noted...

Sat, 22 Mar 08
Novell Announces SUSE Linux Enterprise 11
http://www.newsfactor.com/story.xhtml?story_id=58918
Novell has announced plans for SUSE Linux Enterprise 11. While the actual launch won't happen for another year or so, Novell is highlighting the key themes of the new release to let developers in the open-source community know the feedback the company has gotten from customers and what the new release needs from developers.

Justin Steinman, director of product marketing for Novell's Linux & Open Platform Solutions, told us the "core tenets," such as focusing on mission-critical data-center technologies and "green IT," won't change between releases. There are three areas of critical importance to small and midsize businesses (SMB) on which Enterprise 11 will focus, he told us: interoperability, Unix migration, and virtualization.

Interoperability

Novell has made efforts to build a successful partnership with Microsoft, and Steinman said Enterprise 11 will expand this relationship. "I would suspect that the majority of SMBs have Windows in some shape or form inside their organization," Steinman said, "so one of the things we want to continue to deliver in Enterprise 11 is extending our interoperability leadership in working with Windows. We like to say that SUSE Linux Enterprise is Linux that's been optimized to work with Windows. We think that's a core differentiator and also a core benefit for customers who are trying to make a Linux decision."

One example of Windows support is Novell's plan to include the Mono 2.0 development framework, which allows .NET applications to run on Linux, in Enterprise 11. A Mono migration analysis tool will also be included in the new release; Novell said this tool "helps customers determine the readiness of their .NET applications for migration to Linux."

Unix Migration

Another key theme of Enterprise 11 is Unix migration. "For SMB customers, Unix is an expensive platform that's not very flexible, and you're really tied in to an expensive [Sun] SPARC server," Steinman...

Sat, 22 Mar 08
Intel To Offer Low-Cost Laptop
http://www.newsfactor.com/story.xhtml?story_id=58910
Intel said Wednesday that laptops costing $300, initially designed for poor children, would soon be available to U.S. and European consumers, a development that could further push down computer prices.

Computer makers in the United States and Europe will sell a second-generation version of the Intel-designed Classmate PC for $250 to $350, said Lila Ibrahim, general manager of Intel's group for emerging market platforms, during an interview with Reuters.

Laura Didio, an analyst with Yankee Group, called Intel's announcement "a very big deal."

While the machines are intended for children, analysts said their arrival on the market would add momentum to the low-cost computing movement -- and would probably mean that bargain-basement laptops available this year would have more power than previous generations.

"Particularly in a recession year, quality low-cost products are going to move well," said Rob Enderle, an analyst with the Enderle Group. "But the key is for them to be quality."

He said consumers would probably be able to get "a pretty decent" laptop for less than $600 and perhaps for less than $500.

Didio said retailers might throw in another $50 to $100 in rebates or other incentives.

Laptop prices have been under particular pressure since last year, when Asustek Computer of Taiwan introduced the $399 Eee PC, which has flown off store shelves from Asia to North America. The movement toward low-cost computing was also spurred by the XO laptop, the brainchild of the Massachusetts Institute of Technology professor Nicholas Negroponte and his One Laptop Per Child Foundation.

The foundation began producing a laptop running on the Linux operating system at a cost of $188 in November. They sold them in the United States and in Canada for $400 through a charity drive that also provided one machine to a poor child in developing countries.

The Eee machine also runs on the Linux operating...

Sat, 22 Mar 08
Verizon, AT&T Are Big Winners in FCC Auction
http://www.newsfactor.com/story.xhtml?story_id=58907
The Federal Communications Commission auction for the 700-MHz wireless spectrum is over, and the winners are known. One obvious winner is the FCC itself, which exceeded its initial estimate of $10 billion with a $19.59 billion total.

Among the bidders, Verizon Wireless and AT&T won big portions of the available spectrum, which is being vacated as U.S. television stations move to digital transmission.

Google a Big Winner, Too

Verizon took 108 licenses for $9.6 billion, and AT&T bagged 227 for $6.6 billion. Observers say Verizon's purchases will help it narrow a gap in coverage as it competes with AT&T.

One potentially big winner is Google, even though it didn't win any bids. It bid $4.7 billion for the C-block frequencies, which triggered an auction requirement that any third-party compatible device or software must be able to operate on the bandwidth. That was one of the open-network provisions that Google, as head of an alliance of consumer organizations and businesses, was able to have adopted by the FCC.

Verizon, which backed an open-network position shortly before the auction, bought the C-block license.

Dish Network took 168 wireless licenses for $711 million, although it was not immediately apparent what it intends to do with them. Some observers are speculating it might be for a video service of some kind, but the company is prohibited from discussing its plans until it makes the down payment on April 3.

One setback for the FCC was the auction of the upper 700-MHz D block. Earlier this week, the agency separated that block from the rest of the auction and said it will "consider its options for how to license this spectrum," since bids did not meet the $1.3 billion minimum. The D block was established to create a public-private partnership that would guarantee public-safety agencies bandwidth access in emergencies.

Impact on Consumers

The...

Sat, 22 Mar 08
PlayStation 3 Update Will Bring Interactive Blu-ray
http://www.newsfactor.com/story.xhtml?story_id=58906
Sony on Thursday said the next firmware update for the PlayStation 3 video-game console will add Blu-ray Disc Profile 2.0. The update is due out late this month. Known as BD-Live, the update will offer PS3 players interactive features, such as downloadable video content, ringtones and games. Beyond BD-Live, the update will make room for photo and music playlists on PS3 to be copied to a PSP handheld device.

It's all part of Sony's attempts to evolve the PS3 as a home entertainment hub. Regular updates like this one and future-proofed technology make the 10-year life cycle of PS3 possible, according to Scott Steinberg, vice president of product marketing at Sony Computer Entertainment America.

"With Blu-ray established as the high-definition optical disc standard, more consumers are ready to jump in and take advantage of everything the format offers," Steinberg said. "Whether you want to download movie extras, send ringtones to your phone, or play interactive games, BD-LIVE will offer exciting new ways to enjoy a Blu-ray movie."

BD-Live Possibilities

BD-Live offers plenty of possibilities, but Sony said the benefits will vary by movie title. For example, movie studios could deliver bonus scenes, shorts, trailers, subtitles and ringtones that can be sent to mobile phones. On the gaming side, interactive movie-based games can pit players sitting in the same room or across the world.

In conjunction with the firmware update, Sony Pictures Home Entertainment announced two BD-LIVE-enabled titles to be released on April 8 -- Walk Hard: The Dewey Cox Story and The 6th Day. Both titles will include exclusive downloadable content that goes beyond what is available on the Blu-ray discs, Sony said. These initial releases preview some of the developments that will soon be available from BD-LIVE. Downloading BD Profile 2.0 requires an Internet connection and at least 1GB of storage space.

BD-Live aside,...

Sat, 22 Mar 08
U.S.-Swedish Carrier Spat 'Breaks' Net
http://www.newsfactor.com/story.xhtml?story_id=58901
President Bush famously spoke of "the Internets" in 2004. Well, they're here.

Since March 13, customers of two large Internet providers, Cogent Communications Group Inc. and TeliaSonera AB are unable to contact each other through the Internet, unless they have backup connections from other companies.

This means, for instance, that some U.S. Web sites hosted by Cogent customers are inaccessible to surfers in the Nordic countries, where Sweden-based TeliaSonera is the largest telecommunications operator. It's like Cogent and TeliaSonera customers are on different Internets.

"Basically, parts of the Internet can't talk to each other," said Earl Zmijewski, general Manager of the Internet data division at Renesys Corp., which keeps track of how carriers route traffic over the Internet.

It's not the first time this has happened: Now and then, Internet companies indulge in what Zmijewski calls playing "chicken." If they're fighting over a contract, they disconnect each other, and wait to see who blinks first. The number of irate customers each company faces will probably determine who does.

David Schaeffer, chief executive of Washington-based Cogent, said the two companies had a "peering" contract, under which they exchanged traffic from each other's customers, with neither company paying the other for access. But TeliaSonera continuously breached the terms of the contract by not exchanging traffic in certain locations, and refusing to upgrade connections that were saturated, Schaeffer said.

That forced Cogent traffic to take long detours, according to Schaeffer. For instance, it sometimes had to carry data from a Cogent customer in Europe across the Atlantic to the U.S., then hand it over to TeliaSonera, which carried it back across the Atlantic to its European destination.

Cogent cut its direct links to TeliaSonera on March 13. For a while, customers of the two companies were still able to connect indirectly, through intermediaries connected to Cogent and TeliaSonera, but that...

Sat, 22 Mar 08
Review: Internet Explorer 8 Eases Web Sharing
http://www.newsfactor.com/story.xhtml?story_id=58899
Many people now create and share content on the Internet or blend services from various sites in their daily tasks, reflecting the medium's clear evolution from a place for simply consuming Web sites.

The upcoming version of Microsoft Corp.'s Internet Explorer, version 8, embraces those trends by adding an "Activities" feature that makes all that easier for PC users. Although it's still in a "beta" test mode meant mostly for Web designers to try out, I'm liking what I'm seeing so far.

Internet Explorer's main competitor among browsers for PCs, Firefox, also has been testing an update, although the most promising features await implementation by Web sites. More on that later.

With Activities, one of several new Internet Explorer features, Web services like Facebook, eBay and Yahoo can write tools that users can install with just two clicks.

For example, Microsoft links a slew of Activities to its e-mail, blogging and news services, among others. Yahoo Inc. has one for maps, and auction site eBay Inc. has one to search its listings. The online hangout Facebook, of which Microsoft owns 1.6 percent, offers tools for finding friends or sharing content on its site.

Say you are reading a news article you'd like to e-mail to friends. Simply right-click and choose Microsoft's Hotmail, and the e-mail service opens in a new browser tab with that item already added to the subject line and message body. If you'd rather blog about the item, simply right-click and choose Microsoft's Live Spaces.

Mapping is initially the only service where there is choice of providers: Yahoo or Microsoft. In either case, you also get a thumbnail image of the map if you select an address and right-click. You can expand the map in a new tab with another click.

Other uses for Activities include looking up definitions of selected words or translating...

Sat, 22 Mar 08
Hackers Send Thousands of Fake Calls to Deaf People
http://www.newsfactor.com/story.xhtml?story_id=58895
A Utah company whose videoconferencing technology is used by tens of thousands of deaf people to communicate is trying to figure out who would be base enough to hack into their system and flood tens of thousands of deaf customers with fake conference calls.

Officials with Sorenson Communications say since October they have dealt with a plague of prank calls to its point-to-point video calling service. The company provides videoconferencing calls to the deaf free of charge to allow deaf people to communicate via sign language to others.

Sorenson public relations director Ann Bardsley said on one day, tens of thousands of false calls were sent to Sorenson videophones. On the user end, deaf customers think they have missed a call and that their unit is somehow malfunctioning.

The unknown hackers have affected some 30,000 videophones installed in the homes and workplaces of deaf customers across the United States, according to the company.

Ron Burdett, vice president of community relations for Sorenson Communications, said deaf customers who use sign language rely on his company's service for daily communications. Such interruptions he called "inconvenient and distressing."

Company officials say they do not know what is motivating the unknown group of hackers but they do figure it is a malicious reason.

Mitch Moyers is the technical program director for the Robert G. Sanderson Community Center of the Deaf and Hard of Hearing in Taylorsville. He said the center, which provides training and acts as a social hub, has several Sorenson video relay phones that people can use for free.

"I'm disappointed. I feel like this is a great use for technology and to have people like that make life difficult for other people, that's disappointing," Moyers said.

Moyers said the system allows the deaf to use their "natural language" of signing without having to use a slow and sometimes inaccurate...

Sat, 22 Mar 08
Dell Plans New PCs for China, India
http://www.newsfactor.com/story.xhtml?story_id=58892
Dell Inc., the world's No. 2 PC maker, is developing new models aimed at Chinese and Indian consumers to drive sales in fast-growing Asian markets, CEO Michael Dell said Thursday.

Personal computer makers increasingly are designing products with Chinese buyers in mind. Both Dell and China's Lenovo Group unveiled low-cost PCs last year for rural and novice users.

"This year, we plan to introduce 50 percent more notebook platforms than we introduced last year, including exciting new products aimed exactly at Chinese customer needs," Dell said at a news conference.

New models are meant to meet "specifically the requirements that we see in countries like China and India," he said.

Dell says its consumer sales in China grew by 54 percent last year, more than three times the industry average of 17 percent.

"When we look at the potential for expansion, we do see enormous opportunity ahead," Dell said. "As far as the U.S. goes, I think the U.S. will be OK, but not the fastest-growing. We expect more growth in Asia."

The company last month reported its fourth-quarter profit fell 6.4 percent and cautioned that more cautious spending by U.S. customers could hurt its business.

Dell says it has about 18 percent of China's market by revenue and 10 percent by number of units sold. Worldwide, it has a 16.1 percent market share, according to consulting firm Gartner Group.

In a bid for a bigger share of China's market, Dell broke with its Internet sales model and struck a deal in September to sell PCs through the country's biggest electronics retailer, Gome Group.

Dell's retail presence in China will expand to 1,200 cities by the end of this year, up from just 45 in 2007, said Amid Midha, Dell Greater China president, who appeared with Dell.

"By this summer, we will have more unique products coming to China," Midha...

Sat, 22 Mar 08
Google Sees Rise in Mobile Internet Use
http://www.newsfactor.com/story.xhtml?story_id=58891
Google has reported an acceleration of Internet activity among cell phone users since introducing faster Web services on some phones, fueling confidence that the mobile Internet era is at hand.

Early evidence showing sharp increases in Internet use on phones, not just computers, has emerged from services that Google began offering in recent months on the Blackberry, the iPhone and Nokia devices for business professionals and creators of multimedia pictures and videos, Google said Tuesday.

"We have very much hit a watershed moment in terms of mobile Internet usage," Matt Waddell, a product manager for Google Mobile, said in an interview. "We are seeing that mobile Internet use is in fact accelerating.

The growing availability of flat-rate data plans from phone carriers instead of per-minute charges that previously discouraged Internet use, along with improved Web browsers on cell phones and better-designed services from companies like Google, are fueling the growth, Waddell said.

Google announced the findings as it introduced a software download for cell phones running Microsoft Windows Mobile software that conveniently positions a Google Web search window on the home screen of such phones.

Similar versions of the search software, which Google introduced for Blackberry users in December and certain Nokia phones in February, have sped up the time users take to perform Web searches by 40 percent and, in turn, driven usage.

The software shortcuts the time it takes for people to perform Web searches on Google by eliminating initial search steps of finding a Web browser on the phone, opening the browser, waiting for network access, and getting to Google.com. By making a Google search box more convenient, cell phone users have begun using the Internet more, the company said.

"We are actually seeing a 20 percent increase in the number of searches by people," Waddell said.

Google's mobile plug-in software lets users...

Fri, 21 Mar 08
Lagging Broadband in U.S. Damages Economy
http://www.newsfactor.com/story.xhtml?story_id=58905
The broadband gap usually refers to the many people, particularly in rural areas, who have no access to high-speed Internet services. But there's another gap as well -- how the Federal Communications Commission defines "broadband" and how most of us define it.

The FCC still defines broadband as 200 kilobits per second (Kbps). If you think that's fast, consider that it would take a 256 Kbps connection more than 13 hours to download a 1.5GB movie.

The U.S. continues to lag many other countries in terms of broadband rollout. New research from Tellabs, which makes telecommunications infrastructure equipment, shows that while broadband is widely considered a critical asset for business in the 21st century, the U.S. needs to take steps to widen availability, and to update the definition of broadband to match business requirements.

Where the U.S. fits in terms of broadband penetration depends on who you ask and how the numbers are tallied, but it is not particularly high.

Research last year by the Organization for Economic Co-operation and Development noted that the U.S. has the largest broadband market of OECD countries with more than 66 million subscribers, but its broadband penetration was halfway down a list of 30 countries. The Information Technology and Innovation Foundation's figures put the U.S. at number 12, behind Korea, Japan, eight European and Scandinavian countries, and Canada.

Broadband Gap Hurts the Economy

Most of those surveyed (89 percent) by Tellabs said the lack of broadband damages the education and employment potential of those living in areas where broadband isn't available or affordable. More than eight in 10 of those surveyed felt that the FCC's Universal Service Fund, which provides federal money to alleviate the cost of telecommunications in underserved areas, should be used to expand rural broadband availability.

Expanding broadband isn't just about fairness. Research shows it could be a...

Fri, 21 Mar 08
Sun Offers Virtual Desktop Management Tool
http://www.newsfactor.com/story.xhtml?story_id=58904
Sun has announced a virtual-desktop system with the release of Virtual Desktop Infrastructure 2.0. With VDI, administrators running VMWare's virtualization solutions can provide a range of desktops to users running Intel x86 hardware or Sun's dedicated thin-client machines.

VDI 2.0 features the new Sun Virtual Desktop Connector, which supports Windows XP and Vista, Mac OS, Linux and Sun's Solaris operating systems.

The software allows organizations to "provide their users with secure access to a centralized desktop environment that can be accessed from practically any location, at any time, via the corporate network," said Jim McHugh, vice president of Solaris marketing.

Works with VMWare

The software offers improved information security, more effective control of access to critical data, reduced operational costs and increased employee mobility, McHugh added.

VDI 2.0 is the result of a deal with VMWare, announced last month, to offer and support VMWare infrastructure virtualization software on Sun hardware. Sun demonstrated VMI 2.0 in announcing that deal.

The software seems to build on years of Sun's work on thin clients, said Charles King, principal analyst for Pund-IT, in a telephone interview. Internally, Sun has for some years operated "remote office centers," outfitted with Sun's Sun Ray clients. Employees simply swipe an employee ID through a card reader "and your desktop comes up from a central data center," King said. "It sounds like what they've done here is partner with VMWare to run on the back end and incorporate that with" the desktop-serving application.

Cutting Back on PCs

What Sun is offering with VMI 2.0 is "basically the thin-client model, just utilizing virtualization on the back end to get better performance than you would get on a thin client," he said.

Desktop virtualization makes a huge amount of sense, not least because of the reduction in energy consumption. "With virtual desktop environments, you can take a...

Fri, 21 Mar 08
Adobe Offers DRM Content Control for Media
http://www.newsfactor.com/story.xhtml?story_id=58903
Adobe Systems has unleashed a new software product that will enable content providers to add digital-rights management (DRM) protection to media files. What's more, Adobe Flash Media Rights Management Server also allows media outlets to limit access to live Webcasts as well as deliver pay-per-view programs on demand.

"The new capabilities in Flash Media Rights Management Server provide media publishers with the option to help control and protect their unique media assets," said Adobe Vice President of Dynamic Media Jim Guerard.

Controlling Content

Content managers will be able to use Adobe's new software to specify a range of parameters governing user access limits and media expiration. And they will be able to alter a user's access rights even after the file has been distributed.

One of the core strengths of Adobe Acrobat is its ability to lock content, noted IDC Program Director Al Hilwa. "So it's pretty good for Adobe to also be able to offer the same protection for media content," he said.

The server features full integration with Adobe AIR -- a new and potentially game-changing technology that was brewed in the hallways of Macromedia years before it was acquired by Adobe, Hilwa noted.

"If AIR takes off, the economics of a new generation of rich Internet appliances that do away with or completely embed the traditional computer operating system might be at hand," Hilwa said.

The tight integration of Adobe's server with Adobe AIR and Adobe Media Player -- the first consumer application expressly designed to run on the AIR platform -- means video content can be viewed in the Adobe player in both offline and online modes. Content providers using Media Player will be able to prohibit the later reuse or remixing of their programs.

Adobe AIR

"To understand Adobe AIR better, we need a little context," Hilwa said....

Fri, 21 Mar 08
Google Online Spreadsheets Get New Gadgets
http://www.newsfactor.com/story.xhtml?story_id=58890
Google added more capabilities Wednesday to its growing arsenal of hosted online applications as it took the wraps off Gadgets for Spreadsheets in Google Docs. The new Google Gadgets are HTML and JavaScript mini-applications that can be used to create graphics from spreadsheet data and then publish the graphs on a Web site.

"Developers now have an easy way to add features to Google Docs," said Google engineers Zach Lloyd and Mike Harm on The Official Google Docs Blog. The additions to Google Docs, they said, will begin with an implementation in spreadsheets, and developers can also "pull collaborative data from Google Docs into gadgets on iGoogle and other platforms." iGoogle is a customizable Google start page.

Late for Wedding?

As one example, Lloyd and Harm suggested taking a project plan spreadsheet, adding a custom time-line chart via Google Gadgets, and letting users see the plan's progress. If you use it for a wedding plan, they wrote, how better to let your intended spouse know that you'll be "late to your own wedding?"

The software enhancements enable users to add new ways to display data, and to notify users via e-mail that data has been updated. Those who have signed up for collaborations can see in their e-mail notifications the user names of people who've made changes. Ordinary viewers can set up notifications, but without seeing user names.

Google Gadgets are expected to be added to spreadsheet's companions in the Google Docs suite, the word-processor and presentation applications, although that time line is not yet known.

Additionally, third-party developers can join Google in creating new capabilities for the spreadsheet. Gadgets include interactive time-series charts, Gantt charts, funnel charts, time lines, organization charts, tables with filters and grouping, pivot tables, and maps. To add a gadget, the user simply clicks on "insert" in a drop-down menu and...

Fri, 21 Mar 08
Adobe Says Apple's SDK Blocks Flash on iPhone
http://www.newsfactor.com/story.xhtml?story_id=58889
Flash on Apple's iPhone has been on and off several times in the last few weeks. On Wednesday, Adobe Systems dampened expectations following a report that it would build a Flash player for the smartphone.

The report, first cited in The Wall Street Journal on Tuesday, said Adobe had begun work on a Flash player for the iPhone. The Journal cited remarks by Adobe Chief Executive Shantanu Narayen, who reportedly made the comments during a conference call with investors. He said Apple's recent release of a software developers kit (SDK) gave his company the tools it needed to create a media player for the popular iPhone.

The Fine Print

According to news reports, Narayen said Adobe had evaluated the SDK and "we think we can develop an iPhone Flash player ourselves."

Adobe said Wednesday it has "evaluated the iPhone SDK and can now start to develop a way to bring Flash Player to the iPhone." But it added, "to bring the full capabilities of Flash to the iPhone Web-browsing experience" the company needs to work with Apple for capabilities beyond what the SDK allows.

One of the problems is the SDK's fine print, which is being interpreted by many observers as prohibiting the kind of plug-in capabilities offered by Flash. To use the SDK for those purposes, Adobe would need cooperation and permission from Apple.

Earlier this month, following persistent reports on various Web blogs that Flash on the iPhone was imminent, Apple CEO Steve Jobs said the current Flash mobile player is not ready for the iPhone.

He said Flash Lite, designed for mobile devices, is not powerful enough, and regular Flash, designed for full-featured computers, runs too slowly on the iPhone. "There's this missing product in the middle," he told the Dow Jones news service.

Developers Looking Elsewhere?

Jeffrey Hammond, an analyst with industry...

Fri, 21 Mar 08
Dell Offers New Servers for SMBs
http://www.newsfactor.com/story.xhtml?story_id=58884
Dell launched two new servers for small and midsize businesses that the company claims perform as much as 51 percent faster than comparable IBM servers. The two new PowerEdge servers offer high-availability features as well as larger memories, and come in rack- or tower-server configurations.

The rack server, the PowerEdge R300, uses the Intel Xeon x5460 quad-core processor. Dell says tests show its performance is as much as 26 percent better than the comparable server from HP, the DL320 G5p, and as much as 51 percent better than the IBM System X 3250 server. The new tower server, the T300, similarly beats comparable HP and IBM systems, according to Dell. (Performance data was published with the Standard Performance Evaluation Corporation, or SPEC, a nonprofit organization that sets benchmarks for high-performance computers.)

"The R300 and T300 are the industry's fastest one-socket quad-core servers," a Dell spokesperson told us. "Because of the way we've designed the systems, we've made it possible for a processor typically used in higher-performing two-socket servers to be used in a one-socket server."

Made for SMBs

SMBs often rely on memory-intensive applications, such as Web serving, to run their businesses, and slow performance can hurt productivity. Dell says the R300 and T300 help address this pain point by delivering three times the memory capacity of a typical one-socket server; better memory scalability means they can better handle memory-intensive applications.

"These servers take the performance, memory capacity, and high-availability features previously available only in more expensive, higher-end systems and make them available at a small-business price," the spokesperson said. "Because of these features, the R300 and T300 can help increase uptime and productivity for SMBs. They also help simplify [information technology] for SMBs by helping to reduce cost and complexity, enabling customers to focus more on innovation, productivity, and growing their businesses."

"We're delivering...

Fri, 21 Mar 08
Digital Certificates Key to iPhone Development
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Apple will require iPhone developers to digitally sign their applications. The result is that any application can be traced back to the developer and the digital signature can be used to prove the app has not been altered, according to Dan Dilger at Roughly Drafted on Tuesday. That creates a native application development system that also creates a new kind of software market.

Apple holds the keys to that certificate, and the developers ability to distribute software can be terminated by Apple if they do something questionable in terms of the best interests of the users. "Apple can also vet software as it is submitted, and rapidly respond to user complaints by terminating the distribution and revoking the run rights of signed software. With such a system in place, there's no need for iPhone anti-virus software. Our children will never know why Symantec and Norton ever existed," Mr. Dilger explained.

In quite natural way, the certificate and security system will also help the developers' bottom line. "All iPhone apps will similarly be wrapped by FairPlay, again making it easier for users to buy a legitimate copy than to find a stolen version," Mr. Dilger observed. "This will result in two positive effects: first, developers will be able to price their software lower to entice volume purchases. Second, users buying software will get a better overall experience, with automatic update notifications and records of their purchases."

The mobility of cell phones and their greater exposure to influences outside the home and office makes this new metaphor necessary. "Apple's ability to both give out signing certificates to developers and to revoke those certificates afterward gives it the same kind of control over developers that the DMV holds over drivers," Mr. Dilger noted.

"If drivers faced no threat of losing their license, there would be no way...

Fri, 21 Mar 08
Nokia Invites Users to Shape Products
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A popular video on YouTube shows a so-called concept phone that can bend to fit a user's wrist. The phone, the Nokia Morph, shows how the world's largest mobile phone maker wants to change.

As more people use mobile devices for the Internet, and companies like Apple and Google find more ways to embrace this move, Nokia is rewriting its product development rule book. Instead of working in secrecy, it wants to start sharing.

"For Nokia, this is probably the biggest throw of the dice since they entered the cell phone business," said Ben Wood, research director at CCS Insight, who has followed the company since 1994.

In addition to using video-sharing sites to post futuristic ideas -- like the Nokia Morph concept, which imagines a stretchable, flexible, solar-powered, self-cleaning device which also has a sense of smell -- the company has invited bloggers and tech-savvy media specialists to brainstorm on future mobile products.

"We realized in early 2005 that if we only focused on innovation from within, we were limiting our scope for real breakthroughs," said Nokia's chief technology officer, Bob Iannucci. "We want more wild ideas."

At stake is a share of the next phase of growth in the Internet. Forrester Research expects the number of mobile Internet users to triple over the next five years in Western Europe alone, to 125 million, while Nokia expects its double-digit margins on handsets to shrink.

To make its move into Internet services, Nokia plans to use its large base of customers as consultants.

The market for Internet services is approaching euro 100 billion, or $156 billion, and Nokia is the first big cell phone manufacturer to embrace the Internet media business. Close rivals like Samsung and Sony Ericsson could follow, but they are a couple of years behind.

Change is normal for Nokia. It was founded in 1865...

Fri, 21 Mar 08
Microsoft Wants Wireless Consumers, Too
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Spurred on by Apple's pursuit of the wireless mass market, Microsoft is redoubling efforts to court mobile-phone consumers. Despite long-standing attempts to widen the appeal of Microsoft's Windows Mobile, the operating system for cell phones is popular mainly with business users looking for a way to view documents, spreadsheets, and corporate e-mail on a handheld device.

Luring the less-business-minded has taken on added urgency in light of Apple's success with the iPhone, introduced in June, 2007. "We've always been going in this direction, but we feel it's time to move in more aggressively now," says Scott Horn, general manager of Microsoft's mobile communications business, though he denies the push has to do with Apple. In 2007, the Windows Mobile share of the U.S. smartphone market slipped to 28 percent, from 30 percent, reflecting inroads by the iPhone, which uses Apple's OS X operating system, according to researchers at IDC.

While Windows Mobile has gained global share and almost doubled shipments, to 11 million units, in 2007, Apple has made remarkable gains too, selling 4 million iPhones in less than half a year on the market. "Apple has gotten more attention in the first six months than Microsoft has gotten in the first five years," says Richard Doherty, director at consultancy Envisioneering Group.

Focus on Mobile Browsing

To make Windows Mobile more appealing to the masses, Microsoft is trying to improve its Web browsing capabilities. On Mar. 17, Microsoft announced it has licensed Adobe Flash Lite, which will let Windows Mobile users view certain Web sites, such as e-commerce and video game pages with animations. Microsoft has also licensed another piece of Adobe software that makes it easier to view e-mail attachments, and it's working on a mobile version of its own Silverlight code, designed to enhance the appearance of mobile Web sites.

The company is...

Fri, 21 Mar 08
New Features Coming for Blu-ray Format
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The high-definition-video war may be over now that Toshiba has conceded defeat for its ailing HD DVD format, but those interested in buying a high-def Blu-ray player still might want to wait for new features coming in the fall.

Sure, existing Blu-ray machines can play the nearly 500 Blu-ray discs available. They can deliver gorgeous, top-of-the-line 1080p resolution on compatible high-def televisions. But the next crop of Blu-ray players will be compliant with the upcoming Profile 2.0 standard, which adds Internet connectivity to the machines via a feature called BD-Live.

"Imagine being able to download high-definition trailers to current theatrical releases right to your TV, or selecting additional language tracks or other online bonus materials," says Josh Martin, a senior analyst at consulting firm Yankee Group.

Depending on the disc, BD-Live will also let people chat in real time during films, type in their mobile phone numbers for free movie-related ring tones, play online multiplayer games or upload custom-made audio commentary.

Sony has announced two upcoming Blu-ray machines with Profile 2.0 support: the BDP-S350, available this summer for $399, which can be updated to the latest profile over the Internet when it's available; and the BDP-S550 ($499), which will ship with Profile 2.0 in the fall.

"Technology always evolves, and new features are added to platforms continually, whether it's a Blu-ray machine or other consumer electronics products," says Chris Fawcett, vice president of home video at Sony Electronics.

The new Sony players will include extras such as built-in or expandable memory and multiple audio technologies, including Dolby TrueHD, Dolby Digital Plus, DTS-HD High Resolution Audio or DTS-HD Master Audio decoding, depending on the model.

The Sony PlayStation 3 ($399) video game system, which also has Blu-ray playback functionality, offers a future-proof solution. Sony says the Internet-connected console can download an update for the Profile 2.0 standard.

For now,...

Fri, 21 Mar 08
Next-Generation Computer To Be Unveiled
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After seven years in development, Salt Lake City-based ISYS Technologies is ready to introduce its next-generation computer, designed to replace the typical desktop computer with a small, 3.5-inch cube that has the versatility to adapt to a changing computer world without the user having to buy a new computer system.

Created by Jason Sullivan, the Xi3 Processing Control Unit is a new modular computer platform created for the computer's core processing technology that is adaptable for all types of computing.

"This is a computer that will never become obsolete," Sullivan said. "Anything that a typical computer can do, this can do."

The difference, however, is that the Xi3 PCU has no moving parts, no fans and no hard drives that can crash and lose data. It can function as a workstation, a server or desktop computer through a series of interchangeable parts called backplanes -- a circuit board containing sockets into which other circuit boards can be plugged -- that can be interchanged by any user.

The Xi3 processing core allows multiple processing units to be added or subtracted as dictated by application or user demands. Additionally, units can be hooked up to work together with the original cube to increase functionality in a network-like environment, allowing additional processing capability to be added to the processing core or subsystems to satisfy the new processing requirements. The ability to strip out the same units to create additional workstations provides the elusive flexibility to a successful infrastructure.

According to Sullivan, the unit can also be hooked up to multiple monitors so that users can multi-task as needed for both work uses and entertainment purposes.

"If someone wanted to watch a movie while doing work in another program, they can do that, all from one cube instead of having to have multiple systems operating at the same time," Sullivan...

Thu, 20 Mar 08
Facebook Offers New Options for Private Information
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Facebook rolled out new privacy features on Wednesday to give users more control over who sees the information they share. It made two changes: a standardized privacy interface and new privacy options available through this interface.

"In theory, this is good. But Facebook has had situations in the past where they've announced things that sound good in theory, but in practice have not worked out," said Ari Schwartz, deputy director at the Center for Democracy and Technology. "We have to see how the controls actually work and test them out."

Friends of Friends

Facebook added a "Friends of Friends" privacy option that allows users to share information with more people to whom they are connected through their friends.

"We thought this provided a much-needed option for people whose strongest social connections are not through the networks they've joined, but through the friends they've added," Naomi Gleit, a product manager at Facebook, wrote on the company's blog.

The second new option is the ability to share and restrict information based on specific friends or friend lists. "Now, in addition to messaging and event and group invitations, friend lists can help you communicate by choosing what information you share with certain groups of people."

For example, you can upload your family vacation photo album and share it only with your mom and dad, or only your "Family" friend list. Alternatively, you can restrict loved ones from seeing a photo album that may not be so family-friendly by excluding your "Family" friend list.

Facebook has also redesigned its privacy section to make it simpler and easier to use. "We're always building more ways for you to control your information on Facebook, so stay tuned for more in the future," Gleit promised.

Facebook's Conundrum

Schwartz said Facebook is facing a conundrum. The social-networking site wants to make more information open. But at...

Thu, 20 Mar 08
FCC Wireless Spectrum Auction Nets $19.6 Billion
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The Federal Communications Commission netted $19.592 billion from its auction of wireless spectrums, including its "crown jewel," the 700-MHz spectrum being abandoned by broadcast television.

The auction for that spectrum, Auction 73, ended Tuesday afternoon, the FCC reported. "There were no bids, withdrawals or proactive activity rule waivers placed in Round 261. Therefore, Auction 73 has closed under the simultaneous stopping rule," a posting on the agency's Web site said. The take for Auction 73 was $4.75 billion.

"The $19.6 billion generated by the auction nearly doubled congressional estimates of $10.2 billion," FCC Chairman Kevin Martin said. "All other 68 auctions conducted by the FCC in the past 15 years collectively generated a total of only $19.1 billion in receipts. Even with open-platform and aggressive build-out obligations, each of these blocks sold for more than AWS-1 (Advanced Wireless Service) blocks with comparable bandwidth and license areas."

Verizon a Likely Winner

The television spectrum is valuable because it can travel over long distances and penetrate walls and structures. That makes it very valuable to wireless providers. Google succeeded in pushing the FCC to adopt open-access rules for the spectrum if the bidding cleared the $4.6 billion level.

Most analysts believe Google and Verizon were competing for the spectrum, but the FCC will not announce the names of the winners for several weeks yet. Observers believe Google only bid to the point where open-access rules would apply and that Verizon and AT&T have likely acquired licenses to the spectrum.

"When it finally came time to go into the auction, I think they (Google) were pretty firm about wanting to enforce the open-access conditions as much as it could be enforced, but also being firm on not really being interested in becoming a network operator," said Rebecca Arbogast, a principal telecommunications analyst with Stifel Nicolaus. "I think they...

Thu, 20 Mar 08
Sony Ericsson Says Slowing Sales Will Hurt Income
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Sony Ericsson said slowing growth in mobile-phone sales will hurt its sales and income for the current quarter. The joint venture between Sony and Ericsson cited component shortages and a sales slowdown in the world's more mature markets, which some analysts warn are on the verge of saturation.

"This has been more pronounced in the mid- to high-end replacement sector of the market in Europe, where Sony Ericsson has stronger than average market share," said Sony Ericsson President Dick Komiyama.

Slowing Growth Ahead

IDC Senior Research Analyst Ryan Reith said it would be unreasonable to expect the global handset market to maintain the high growth levels it has seen over the past three years. "We expect growth to be in the single digits throughout 2008 and most likely for years to follow," Reith said.

Other industry analysts agree that handset sales growth will be more moderate this year than in the past.

"We expect the growth in sales of mobile devices to end users will decelerate in 2008 and fall to about 10 percent growth as mature markets become more saturated," Garter Research Director Carolina Milanesi said earlier this month. "The mature Western Europe and North America markets are driven by operator contract terms and replacement cycles and will account for just 30 percent of the global mobile-devices market in 2008."

Handset makers had been counting on 3G phone sales to help lift sales in mature markets. But mobile chipmaker Texas Instruments recently scaled back its first-quarter growth estimates because of a decline in demand for the latest 3G handsets.

Targeting New Markets

Up till now Sony Ericsson has enjoyed the most success from sales of its higher-priced Cyber-shot and Walkman models. But as Milanesi pointed out, handset growth over the past several quarters has been driven primarily by sales in emerging markets such as...

Thu, 20 Mar 08
Apple Considering 'Free' Access to iTunes Library
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Apple is talking with the major record labels about a change in the iTunes Store business model that would give customers free access to the store's complete music library, according to the Financial Times. The catch is that consumers would pay a premium for Apple's iPod and iPhone devices.

The rumored model is akin to the "Comes with Music" deal Nokia inked with Universal Music last December. Apple could not immediately be reached for comment, but the British newspaper reported the negotiations hinged on a dispute over the price Apple would pay for access to the labels' libraries.

"Rumors of Apple getting into the 'all you can eat' music business have been around almost as long as the iPod itself," said Michael Gartenberg, an analyst at JupiterResearch. "The real challenge that Apple would face is taking this from something that appeals to music aficionados to something the mainstream could appreciate."

Paying an iPod Premium

One of the major sticking points with shifting the iTunes Store model, Gartenberg said, is the challenge of formulating price schemes that make sense to consumers, Apple and the record companies.

The Financial Times cites executives familiar with the matter whose research shows consumers would pay a premium of up to $100 for unlimited access to music for the lifetime of the device.

"If it costs $100 more to buy an iPod, but that money buys you access to the entire iTunes music library, then that's going to be an acceptable value proposition to a lot of consumers," Gartenberg said.

A Subscription Model?

However, the Financial Times reports, the "all you can eat" model is not the only one Apple is considering. The company is also reportedly exploring a subscription model, which is more common to the industry. A subscription, the report indicated, would come with a monthly fee of $7 to $8.

"Consumers...

Thu, 20 Mar 08
Microsoft, Intel Fund Parallel-Computing Research
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In an effort to turbocharge progress in mainstream parallel computing, Intel and Microsoft announced funding Tuesday for two Universal Parallel Computing Research Centers. They said the centers are the first joint industry-university efforts of this scale in parallel computing. The software developed will be made available to the public.

Berkeley and Illinois

One center will be at the University of California, Berkeley, and the other at the University of Illinois at Urbana-Champaign (UIUC). Intel and Microsoft have committed $20 million over the next five years to fund the centers. UIUC will put up another $8 million, and Berkeley has applied for an additional $7 million from the state of California.

Multicore computer processors are common now, and the number of cores is steadily increasing. Intel research director Andrew Chien noted that Intel has already shown an 80-core research processor, and the centers could develop "dramatic new applications." These new apps could involve visual interfaces, statistical analyses, search functions, mobile applications, computer sensing, and new forms of computer-human interfaces.

Richard Shim, an analyst with industry research firm IDC, said parallel computing for even regular consumers and business users "is the future, and it's only a question of how far out."

He added that the challenge is how to use the powerful, multicore systems available on regular computers. "Hardware has definitely gotten ahead of software," he said.

Expertise Tapped

In evaluating where to locate the centers, Microsoft and Intel said they considered 25 top-tier institutions involved in parallel-computing research. They selected UC Berkeley and UIUC because of "their outstanding reputation in computing" and their specific expertise in parallel computing.

Berkeley's center will be directed by David Patterson, a professor of computer science described by the companies as a pioneering expert in computer architecture. Fourteen members of the UC Berkeley faculty will also be involved as well 50 doctoral students...

Thu, 20 Mar 08
Vista SP1 Updaters Report Problems, Successes
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Rarely has a service pack received as much attention as SP1 for Microsoft's Windows Vista, officially released Tuesday. And while some users are reporting smooth installation and better performance, many are reporting problems.

Vista SP1 was completed in early February, correcting a variety of bugs or performance issues in the Vista operating system. Shortly after its completion, it was shipped to computer makers, beta testers, big customers and subscribers to Microsoft's TechNet and Developer Network services.

The software giant had said the full release of SP1 was delayed because of problems with some hardware-device drivers, and it needed time to provide new drivers or to block systems with bad drivers from installing SP1.

Available Manually

A notice on the Windows Vista blog Tuesday reported that it is now available through Windows Update -- if the user opens Windows Update and selects SP1. But if automatic downloading and installation through Windows Update is preferred, a user will need to wait until mid-April. SP1 is also beginning to be available through retailers.

Regardless of the method to obtain SP1, updaters are reporting both problems and successful fixes. A poster named huddy reported on a bit-tech.net forum that, after installing SP1, his X-F1 sound card caused his computer to crash. "At least neighbors are happy," he reported.

Another user, moshpit, said his post-SP1 computer now "runs butter smooth and has been problem-free," while someone named Akava said there were problems just downloading SP1.

Even the Vista blog has reports of problems. A user named butters286 said that, after the SP1 installation, there's now no sound and the DVD drive doesn't work. A commenter named SeppDietrich said that installing SP1 was not, "in retrospect, my finest decision," calling it "a disaster" with all the Nvidia drivers being exiled to "the Bermuda Triangle" -- that is, vanished. Afterward, SeppDietrich...

Thu, 20 Mar 08
Yahoo Releases Rosy Forecast
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Yahoo Inc. has released a rosy outlook for the next two years, hoping to give investors a better understanding of why the Internet pioneer isn't willing to sell to Microsoft Corp. unless its suitor raises its bid above $45 billion (EU28.5 billion).

Analysts interpreted Tuesday's unscheduled disclosure of Yahoo's internal projections as a sign that the Sunnyvale-based company's attempts to find an alternative deal to Microsoft's 6 1/2-week-old offer aren't bearing fruit.

With its options narrowing, Yahoo appears determined to remain independent unless Redmond, Washington-based Microsoft boosts its unsolicited bid, originally valued at $44.6 billion (EU28.28 billion), or $31 (EU19.66) per share. Microsoft so far hasn't wavered from the offer, which it has described as fair.

But the two sides signaled they might be ready to negotiate last week when senior executives from Yahoo and Microsoft held their first face-to-face meeting in Silicon Valley. No investment bankers attended that icebreaker.

Stanford Group analyst Clayton Moran called the release of Yahoo's revenue forecasts through 2010 "another step in the public negotiation between these two companies. We believe this deal is turning friendly."

Yahoo's move appeared to hearten investors as the company's shares rose $1.70 (EU1.08), nearly 7 percent, to $27.55 (EU17.47) during Tuesday's afternoon trading.

As the company warned in late January just before Microsoft made its bid, Yahoo has modest growth expectations this year after a streak of declining profits in 2006 and 2007.

Yahoo still anticipates its revenue, after subtracting advertising commissions, to total $5.7 billion (EU3.61 billion) this year, in line with analyst expectations.

But Yahoo assured investors its plans to grab a bigger piece of the online advertising market will kick into high gear after this year, with revenue climbing by about 25 percent in 2009 and 2010. By 2010, Yahoo projects its revenue, after ad commissions, will total about $8.8 billion (EU5.58 billion),...

Thu, 20 Mar 08
Student Claims to Have Cracked Smartcard Encryption
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A University of Virginia graduate student and two fellow hackers say they have cracked the encryption code used to protect millions of wireless "smartcards" in use across the globe.

With readily available equipment that cost under $1,000, Karsten Nohl, 26, and his two Germany-based partners say they dismantled a tiny chip found inside many smartcards and mapped out its secret security algorithm.

With the cryptographic formula in hand, the hackers were then able to run it through a computer program that tried out every possible key. It broke the encryption after a few hours. If they were to try again, Nohl said, it would take a matter of minutes.

"I don't want to help attackers, but I want to inform people about the vulnerabilities of these cards," said Nohl, a doctoral candidate in computer engineering at U.Va. who is originally from Germany.

Wireless chips, which employ technology known as radio-frequency identification, or RFID, are found inside most modern credit cards, car keys, security keycards and subway passes. The chips send an encoded numeric signal to the reading device, which allows the user to wave their card to gain access to secure buildings, remotely unlock a car, pay for public transportation and much more.

The popular chip that the trio "dissected" is called the MiFare Classic RFID chip and is manufactured by NXP Semiconductors, a Netherlands-based company.

Nohl and his colleagues found that it was fairly easy to crack the RFID chip's code.

The three computer whizzes announced their findings at the Chaos Communications Congress in Berlin, an annual worldwide convention of hackers. They are not releasing the details of how they beat the chip's security code. But, Nohl added, it is possible that criminals might also have done so.

Manuel Albers, director of regional marketing for North and South America for NXP, disputed that Nohl and his compatriots...

Thu, 20 Mar 08
Consensus Grows on Eventual Microsoft-Yahoo Deal
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Microsoft's offer to buy Yahoo will most likely succeed, but it may not be the best use of the company's ample cash reserves, according to a poll of analysts.

The standoff between Microsoft and Yahoo has stretched six weeks since the proposal was announced. Yahoo rejected the offer, which now values the company at $41.4 billion, saying the takeover bid "substantially undervalued" it.

The Reuters poll found that Wall Street brokers who follow either company remain convinced that Microsoft will prevail. All 8 Microsoft analysts surveyed and 14 of 15 Yahoo analysts said they believed that Microsoft would eventually acquire Yahoo.

"Yahoo's options are becoming more limited, and it makes Microsoft's offer look better," said Andy Miedler, an analyst at Edward Jones, who has a "hold" rating on Microsoft.

Twenty-one brokerage companies responded. Seven brokers have analysts who follow both companies, and their votes were counted separately. In total, 33 financial analysts follow Yahoo and 40 analysts track Microsoft.

Analysts at three companies -- Morgan Stanley, Goldman Sachs and Lehman Brothers -- are restricted by their companies from publishing research on the merger as their investment banking arms are working on behalf of either Microsoft or Yahoo.

There is disagreement, however, over whether Microsoft must raise its half-cash, half-stock bid to succeed. A majority of analysts say they believe that Microsoft need not increase its bid beyond the current $31-per-share offer, although some analysts argue that it may need to improve the bid by making it an all-cash offer.

Twelve said they believed that Microsoft would not alter its bid and succeed, while four said they expected it to keep the price at $31 but make it a more lucrative all-cash offer.

"The change in deal terms to all cash could be the next step in this ongoing mergers and acquisition dance in our view," UBS analysts said...

Thu, 20 Mar 08
Apple's Icarus Effect
http://www.newsfactor.com/story.xhtml?story_id=58856
Just as those living in shiny houses of self-righteous glass often end up surrounded by shards of their former sanctimony, so Apple Inc. now finds itself the increasingly appealing target of software hackers.

For years, Apple's marketing has consisted of accentuating the positive and ignoring everything else. As hackers pillaged Microsoft's Windows operating system, Apple stressed that its computer platform was relatively virus-free, most notably in that snarky ad campaign, "I'm a PC. I'm a Mac." There was Windows, groaning under the weight of its security apparatus, like some knight of yesteryear packed in heavy armor who, once he fell off his horse, couldn't get up again. And on the other side, there was Apple strutting about, smacking its gloves together and posing for the crowd.

But now Apple is becoming a victim of its own success, and the irony is just too great to miss. Anyone with a mild sense of history is keeping track. The main reason Apple had been left alone by hackers was not by virtue of any superior security technology, the company's protestations to the contrary notwithstanding. Software is, after all, eminently hackable. Only sufficient motivation is required. And now that Apple's platforms have become more popular, hackers are getting motivated.

Target: iPhone

Apple sold nearly 7.8 million Mac desktop and laptop computers in 2007. That's a 37 percent gain over the number sold in 2006 and well more than double the 2001 volume. It's little surprise then that reports of Mac viruses have been rising steadily.

Even more than the Mac, the iPhone makes for an attractive target. Apple tried to keep tight control on the iPhone platform, which is also based on the Mac OS. But iPhone-philes had other ideas. Hackers went to town on the iPhone from day one, opening it for service with nondesignated wireless providers...

Thu, 20 Mar 08
Card Numbers Stolen During Authorization Process
http://www.newsfactor.com/story.xhtml?story_id=58854
A large East Coast supermarket chain is the latest victim of a major data breach, with as many as four million credit- and debit-card numbers exposed. Hannaford Bros., based in Maine, announced the "containment of a data intrusion into its computer network" that resulted in the theft of data, but added that "no personal information, such as names and addresses, was accessed or obtained." The company said it is "aware of fewer than 2,000 cases of reported fraud related to this crime."

Hannaford operates 165 stores along the East Coast and, under the name of Sweetbay Supermarket, another 106 stores in Florida. The company is owned by the Delhaize Group of Brussels, Belgium. Also affected by the breach are an unknown number of independent retailers in the Northeast that sell Hannaford products.

According to a statement from Hannaford, "data was illegally accessed from Hannaford's computer systems during the card-authorization transmission process." A statement from Hannaford CEO Ron Hodge said that the stolen data "was limited to credit- and debit-card numbers and expiration dates," not names or addresses, and that the company "doesn't know or keep any personally identifiable information from customers."

Attacks on Data in Transit

"What showed up here was a new trend where criminals are going after data in transit, as opposed to data at rest. I think everybody was caught off-guard by that," Avivah Litan, a security analyst for Gartner, told us.

Payment Card Industry standards from credit-card issuers mandate that retailers take security measures such as protecting stored cardholder data and encrypting the transmission of data across open networks. Despite the breach, Litan said Hannaford could possibly have been in compliance with PCI standards.

"When you swipe a card, it should be encrypted immediately," she said, but often it's not until the data gets to the cash register that encryption happens; in...

Thu, 20 Mar 08
Net Video Ads: Attention Vs. Annoyance
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Frank Harper is well aware that all those free video clips on the Internet come at a price: advertising.

But that doesn't mean he sits idly as short video ads precede many of the dozen or so clips he watches each day at sites like Microsoft Corp.'s MSN.

"For the most part, I just mute the volume," said Harper, 55, who runs a security consulting firm in Sterling, Va. "Or I just look at something else, look at another headline ... or go to another site while the thing is playing."

Marketers and Web sites alike are struggling to bring to the Internet ads that resemble television without turning off viewers the way TV ads often do.

Spending on online video ads represents less than 4 percent of all Internet advertising and just 1 percent of the amount spent on TV, according to eMarketer. But growth is expected -- with the research firm forecasting U.S. spending more than tripling to $4.3 billion in 2011 -- especially as more viewers embrace full-length TV episodes and other video online.

The challenge is finding the right formula -- in the creative approach, the format or the frequency with which the ads appear -- so visitors notice the pitches without getting so annoyed that they never come back.

"Users love free content and advertisers love to fill up every minute and pixel with the messaging, and publishers do have to find that balance," said Geoffrey Coco, an advertising executive with Microsoft, which has a video news partnership with The Associated Press. "There's been a lot of innovation but I don't think we've settled down yet."

The results so far have been mixed -- even when sites force viewers to watch video ads by making them impossible to skip.

Viewers "are grabbing the status bar, trying to click it ahead or further along,...

Thu, 20 Mar 08
Botnet Scams Inundate the Internet
http://www.newsfactor.com/story.xhtml?story_id=58832
Two days after actor Heath Ledger died, e-mails began moving across the Internet purportedly carrying a link to a detailed police report divulging "the real reason" behind the actor's death. Ledger had been summarily drafted into the service of a botnet.

Bots are compromised computers controlled by profit-minded crooks. Those e-mails were spread by a network of thousands of bots, called a botnet. Anyone who clicked on the link got instantly absorbed into the fast-spreading Mega-D botnet, says security firm Marshal. Mega-D enriches its operators, mainly by distributing spam for male-enhancement pills.

Largely unnoticed by the public, botnets have come to inundate the Internet. On a typical day, 40 percent of the 800 million computers connected to the Internet are bots engaged in distributing e-mail spam, stealing sensitive data typed at banking and shopping Web sites, bombarding Web sites as part of extortionist denial-of-service attacks, and spreading fresh infections, says Rick Wesson, CEO of Support Intelligence, a San Francisco-based company that tracks and sells threat data.

"It's like a disease you can't even feel," Wesson says. "The mechanisms we use to protect our networks simply are not working."

The botnet problem shows no sign of easing. Security firm Damballa pinpointed 7.3 million unique instances of bots carrying out nefarious activities on an average day in January -- an astronomical leap from a daily average of 333,000 in August 2006. That included botnet-delivered spam, which accounted for 91 percent of all e-mails in early March, up from 64% last June, says e-mail management firm Cloudmark.

The upshot of this deluge is profound, if not immediately obvious, says Adam O'Donnell, Cloudmark's director of emerging technology. Telecoms and Internet service providers must absorb the cost of carrying botnet traffic; they can be expected to pass that expense onto companies and consumers, he says. Meanwhile, tens of millions of...

Wed, 19 Mar 08
Microsoft Releases Service Pack for Windows Vista
http://www.newsfactor.com/story.xhtml?story_id=58869
Microsoft Corp. posted a major package of updates and security fixes for its Windows Vista operating system for download starting Tuesday.

People whose PCs run the newest Microsoft operating system can use Microsoft's Windows Update tool or visit its Download Center Web site and download the free Service Pack 1. In some cases, computer users may need to download older updates before they'll be able to install SP1.

Many of the fixes contained in SP1 have already been released as part of regular monthly updates in the year since the operating system went on sale to consumers. Microsoft has said SP1 improves Vista's reliability, security and performance.

Before SP1 was made widely available, Microsoft had determined that a handful of programs will fail in some way after SP1 is installed. On Tuesday, a Windows team blog said PC users with some drivers installed will "temporarily" not be able to get SP1 at all.

Microsoft said SP1 will block several applications from running for "reliability reasons." The list includes BitDefender Antivirus and Internet Security, version 10; Fujitsu's Shock Sensor hard drive protection for rugged laptops; two versions of Jiangmin KV Antivirus software and Check Point Technologies' Zone Alarm Security Suite.

The company said a few programs won't run on SP1, such as Web application design program Iron Speed Designer, while others will stop working well, like The New York Times Reader application.

Certain device drivers from RealTek AC, Intel and Symantec are among those Microsoft said would prevent an upgrade to SP1. The software maker said PC users can seek out updates from most of the makers of those devices to fix the problem.

Industry analysts offered mixed reports on whether Vista SP1 makes a noticeable difference on the way their computers run.

Michael Cherry, of the research group Directions on Microsoft, said that after installing SP1, the time...

Wed, 19 Mar 08
EU Adopts DVB-H as Mobile-TV Standard
http://www.newsfactor.com/story.xhtml?story_id=58867
The European Commission has added the DVB-H mobile-TV specification to the European Union's list of official standards. Tailored to the specific requirements of handheld, battery-powered receivers, DVB-H is an offshoot of the terrestrial DVB-T system already employed by digital-TV broadcasters in Europe.

The EC believes deployment of a single technology across EU nations will give wireless operators the market scale they need to launch mobile-TV services in time for this year's broadcasts of the European Football Championship and the Summer Olympic Games.

The EC "is firmly convinced that 2008 is the right time to create conditions favorable to the rapid takeoff of mobile broadcasting," said EU commissioner Viviane Reding. "Without this certainty and predictability, it will be impossible to invest with confidence in new innovative technologies."

The Next Steps

Spearheaded by Nokia and backed by Motorola, Philips, Sony Ericsson and Samsung, DVB-H is the world's most widely used mobile-TV spec. Services based on the spec are currently between trials and commercial launches in 16 countries. A commercial service is also in the works for Russia.

However, several key steps are still needed to put DVB-H on the high-growth track. Reding said the main patent holders still need "to finalize an agreement over the licensing terms and conditions and the constitution of the patent pool."

Digital-rights management systems based on open technologies also need to be finalized, Reding said. "We also cannot allow commercial launches to be delayed because of legal vacuums or overly burdensome regulation," she added.

A Global Opportunity

Europe's move to embrace DVB-H is a setback for rival technologies such as Qualcomm's competing MediaFLO technology, which has already been embraced by U.S wireless carriers AT&T and Verizon Wireless. However, the EC's adoption of DVB-H as a standard is not compulsory, so EU nations still have the option of permitting...

Wed, 19 Mar 08
Supreme Court Opens Door to Microsoft Antitrust Suits
http://www.newsfactor.com/story.xhtml?story_id=58866
On Monday, the U.S. Supreme Court let stand a lower court's ruling that Novell can proceed with an antitrust suit against Microsoft. The justices declined to hear Microsoft's appeal, with Chief Justice John Roberts recusing himself because he owns Microsoft stock. The court did not offer a reason for declining the case, its standard practice.

The suit dates back to 2004. Novell sued Microsoft, claiming the software giant "deliberately targeted and destroyed" its WordPerfect word-processor and Quattro spreadsheet applications because they are compatible with operating systems besides Windows.

Plaintiffs Could Multiply

Microsoft has reason to be concerned, according to Mark Ostrau, co-chairman of the Antitrust and Unfair Competition Group and a partner in the Intellectual Property and Technology Transactions Groups at Fenwick & West LLP, a Silicon Valley law firm specializing in high technology.

"As soon as you make it possible for people who have ancillary products or applications like WordPerfect to sue based on Microsoft's monopolization of the operating system, it opens up a larger class of potential plaintiffs than Microsoft has had to face before," Ostrau said. "So this case with Novell is a big issue."

Microsoft settled a similar case with Novell in 2004 when it paid $536 million to resolve Novell's claim that Microsoft set out to run its market prospects for the Netware operating system. Ostrau said Microsoft could probably also settle this case.

Killing the Antitrust Weeds

Microsoft may have to look over its shoulder to see what other applications it allegedly crushed as it made market moves to protect its operating system. "Everywhere Microsoft looks it's trying to put all these antitrust issues behind it. But try as it might, new issues keep popping up," Ostrau said.

The European Commission assessed Microsoft a record $1.35 billion antitrust fine just last month because, the watchdog group said, the company wasn't living up...

Wed, 19 Mar 08
China Blocks Internet News on Tibetan Crackdown
http://www.newsfactor.com/story.xhtml?story_id=58865
China has succeeded in blocking the flow of news about its crackdown on Tibetan protesters. While China has traditionally exerted strong control over traditional media outlets such as television, radio and newspapers, this week's developments are notable for the country's effective control of YouTube, blogs and other Internet communications.

While Western news outlets are getting information out to the rest of the world, many Chinese remain in the dark. The Wall Street Journal reported that Baidu.com, China's largest search engine, turns up no news in a search for "Tibet" (the fifth most popular search term on Baidu Monday), while searches for "Tibet riot" produce hits to pages that have been removed.

In addition, China's major Internet portals, Sina and Sohu.com, are devoid of news of the uprising and repression. And Chinese Internet video sites Tudou.com, Youku.com and 56.com -- the Chinese equivalents of YouTube -- are similarly vacant.

YouTube Blocked

Of course, YouTube itself has many videos of the protests, but China has blocked the Google-owned site. Google CEO Eric Schmidt said the company is looking into the reports of blocking.

Observers are not completely sure how China is blocking all the news, the Journal reported. In some cases, entire domains are blocked; in other cases, only certain pages. While editors of state-run media frequently avoid controversial topics, independent Internet companies also cooperate with censorship; they are required to monitor user-supplied content and delete pornography, as well as a list of forbidden topics.

The censorship raises a challenge to the much-vaunted claim that the Internet views censorship as network damage and routes around it -- a claim no less a technology luminary than Bill Gates repeated last month. "I don't see any risk in the world at large that someone will restrict free content flow on the Internet. You cannot control the Internet," the Microsoft...

Wed, 19 Mar 08
Apple's New Safari Runs Faster, Supports Windows
http://www.newsfactor.com/story.xhtml?story_id=58863
Apple released a 3.1 version of its Safari Web browser on Tuesday with several improvements. Apple said the new version loads Web pages 1.9 times faster than Microsoft's Internet Explorer 7 and 1.7 times faster than the open-source Firefox 2 browser. It also said Safari 3.1 runs JavaScript up to six times faster than any other browser, and it is the first to support new Web standards.

Apple said the speed benchmarks were based on VeriTest's iBench Version 5.0 with default settings, running on an iMac 2.4-GHz Intel Core 2 Duo system with Windows XP and 1GB of memory.

For Mac and Windows

The browser is available as a free download at www.apple.com/safari, and works on both Mac OS X and Windows operating systems. For Mac, the browser requires either the Tiger 10.4.11 version of Mac OS X, or Leopard, with at least 256MB of memory on any Intel-based Mac or any Mac with a PowerPC G5, G4 or G3 processor. For Windows XP or Vista, at least 256MB of memory is required and at least a 500-MHz Intel Pentium processor.

Apple Senior Vice President Philip Schiller said Safari 3.1 is "blazingly fast, easy to use" and features an "elegant user interface." Best of all, he added, the newest Safari supports audio, video and animation standards needed for the next generation of Web 2.0 experiences.

In particular, Apple noted that Safari 3.1 is the first browser to support new video and audio tags in HTML 5, as well as the first to support CSS animations. It also supports CSS Web fonts that offer new design choices.

Support for MacBook Air

The interface includes drag-and-drop bookmarks, easy-to-organize tabs, and an integrated Find that shows the number of matches in a page. A built-in RSS reader enables the user to scan and view news and information from feeds....

Wed, 19 Mar 08
Intel Details Plans for Dunnington, Nehalem Processors
http://www.newsfactor.com/story.xhtml?story_id=58853
Intel revealed more details Monday about its plans for upcoming microprocessors, including the Dunnington server chip and the much-touted, next-generation Nehalem processor family. The products build on the company's 45nm high-k metal gate manufacturing technology, featuring new chips with four, six, eight or more computing cores.

Dunnington, Tukwila, Nehalem

Intel Senior Vice President Pat Gelsinger described the Dunnington six-core processor for expandable, or multiprocessor, servers. He said Dunnington, available in the second half of this year, will be the first Intel processor with six cores.

Featuring large share caches, Dunnington also offers FlexMigration, which enables a single virtualization pool to support both 65nm and 45nm-based servers. Gelsinger described FlexMigration as "investment protection" for evolving data centers.

He also discussed Tukwila, the code name for the company's new Itanium processor. As the world's first two billion-transistor microprocessor, Gelsinger said it will deliver more than twice the performance of the current Itanium processor. It will have four cores, 30MB total cache, QuickPath Interconnect, dual integrated memory controllers and mainframe-class RAS features.

Nehalem, a scalable microarchitecture for a family of processors, will have anywhere from two to eight cores, and its simultaneous multithreading will enable four- to 16-thread capability. Compared to current-generation Xeon-based systems, Nehalem quadruples the memory bandwidth and it can be utilized on a variety of devices, from notebooks to high-performance servers.

'Visual Computing' Platform

For demanding consumers and visualization professionals, Intel is also promoting what it called "next-generation techniques" for visual computing. The company said its new technologies will enable new levels of performance for such processing-intensive visual tasks as ray tracing for accurate shadow and lighting effects, game-based physics, or human motion in medical imaging. It will also support new levels of interactivity, such as game controllers that can "understand human motion" and that enable users to "become characters in their favorite games."

Intel...

Wed, 19 Mar 08
CBS Offers Local Sites News Widgets and Revenue
http://www.newsfactor.com/story.xhtml?story_id=58852
CBS Television Stations on Monday launched a local ad network with blogger and social-media sites. Dubbed the CBS Local Ad Network, the partnership is the first between a major media company's television stations and localized social-media mavens.

The network initially launched in Boston, Dallas-Fort Worth, San Francisco, Denver and Chicago. CBS will continue to roll out the program over the next several weeks in other major markets, including New York, Los Angeles and Philadelphia.

Jonathan Leess, president and general manager of the CBS Television Stations Digital Media Group, is inviting local social-media sites and bloggers to share in the ad revenue. Leess said the network "opens up exciting new avenues for our advertising partners to efficiently extend their reach to valued local audiences while associating themselves with our CBS brands and content."

The Network in Action

CBS-owned stations across the country are syndicating local news widgets to blogs and hyper-local sites in the communities they serve. Each widget will feature top local headlines and images with links to the video and text stories on the CBS station's site. Included in the widget is a companion banner advertisement.

The CBS stations will deliver real-time news feeds to the widget, allowing the content on the local partner sites to update 24 hours a day. CBS stations can offer marketers the ability to reach a local audience while remaining attached to CBS station brand and content, the company said.

Owners of the local sites will receive a portion of the advertising revenue generated by the CBS stations, which will be responsible for selling the ad inside each widget. AT&T, North Texas Honda Dealers and Liberty Mutual Insurance are early adopters of the network. CBS did not say what percentage of the revenue bloggers and social-media sites will receive.

How Much Revenue?

The concept of content on geo-targeted widgets is...

Wed, 19 Mar 08
Peer-to-Peer Networks Go Legit
http://www.newsfactor.com/story.xhtml?story_id=58849
The technology best known for pirating movies, music and software online is increasingly being adopted by businesses as a cheap way to get video content to customers.

A number of startups are embracing so-called peer-to-peer technology and have convinced some big-name media companies to use them to deliver legal content.

"In 2005 when we met with content owners, 'peer-to-peer' was a dirty word," said Robert Levitan, chief executive of file-sharing company Pando Networks Inc. "In 2007, finally, content owners came and said 'Yeah, we think there's a role for P2P.'"

Levitan was speaking Friday at the first "P2P Market Conference" of the Distributed Computing Industry Association, a trade group with more than 100 members.

Pando is prime example of mainstream acceptance: It's providing the means for NBC to provide DVD-quality downloads of its shows, including "The Tonight Show" with Jay Leno.

But 90 percent of P2P downloads are still of illegally copied content, according to David Hahn, vice president of product management at SafeNet Inc., which tracks the networks.

Hahn said 12 million to 15 million people are file-sharing across the world at any one time, mainly on the BitTorrent and eDonkey networks. The attraction of file-sharing is not just that it's free -- there's also content available that can't be had by legal means, like TV shows that haven't aired in Europe.

The BitTorrent software was invented and set free on the Net in 2002 by Bram Cohen. He later started a company to profit from the technology. In 2005, BitTorrent Inc. stopped providing links to copyright content in 2005 and now helps studios distribute movies.

Overall, acceptance of P2P technology is higher in Western Europe, where piracy using the technology also happens to be especially rampant, according to SafeNet.

The British Broadcasting Corp. uses P2P technology from Verisign Inc. for its iPlayer, which streams some of its...

Wed, 19 Mar 08
Security Concerns Dog Mobile P2P Payments
http://www.newsfactor.com/story.xhtml?story_id=58845
More and more vendors are rolling out technology that will allow consumers to use cell phones to do their banking. They're just waiting for customers to start using these technologies. While it will eventually happen, these companies should have some patience, because consumers are still wary about the perceived risks.

A study from Javelin Strategy & Research, a financial-services payment research company, reveals that customers are interested in the idea of mobile P2P banking, but are not yet confident that these technologies are safe to use. James Van Dyke, Javelin's president and founder, says that companies still need to make security a priority.

"A full third of our report is devoted to security simply because we find that industry companies so often get security issues wrong. It's so unbelievably misunderstood," Van Dyke said. "We'd like to see more authentication measures where people are asked to remember key phrases and things like that."

Risky Behavior, Not Technology

Still, Van Dyke said that security concerns were more a matter of perception than actual risk. "What's interesting is that we don't see significant security features going in, but we don't expect to see widespread actual security risks. We expect to see widespread security fears, yet we don't see [mobile P2P banking] as a particularly risky thing to do," he said. One reason the security risks will be lower than for desktop PCs is that there is a wide range of mobile platforms in use rather than one monolithic platform, he added.

He noted that dangers are more likely to arise from behavior by users -- particularly young people -- rather than security flaws. Young people "take undue risks with personal technology," he said. Some reasons for that, he surmised, are that they "typically don't have as many financial assets, and they tend to be haphazard [with...

Wed, 19 Mar 08
Thanks to Internet, Starting Your Own Business Never Easier
http://www.newsfactor.com/story.xhtml?story_id=58843
The prospect of starting out on your own in business should not be a decision made on a whim. And it is usually not. But despite the "allure" of being an entrepreneur, many people never take the plunge.

However, with today's economy, technology and conditions, there has never been an easier time to start your own company. I am amazed every single week at the sheer number of ideas that are floating around out there -- many of which have the makings of a serious business waiting to happen.

I've recently been reading Chris Anderson's "The Long Tail: Why the Future of Business is Selling Less of More." Anderson makes the point that today's technology allows virtually anyone to be a publisher, distributor or retailer. There are so many goods and services that can be made available today at a profit that one decade ago would have been a failing business model.

There are so many possibilities here, it would be impossible to mention them all. But here are a few ideas:

-- Publishing: In literally minutes, you can have an Internet presence by starting your own blog, an online, interactive newsletter. This kind of online forum is critical to telling your particular story.

-- Advertising: If you have a site with a decent number of visitors, this can be monetized by becoming an advertiser. Google, Microsoft and many others offer ad programs you place on your site and make money every time someone clicks on the ad.

-- Retailing: Launching an online store has never been easier, nor have more options been available. You can let other companies like Amazon.com do most of the work for you, you can have your store hosted on Yahoo Stores, or you can run the entire site yourself with free software on your own server. If you aren't a...

Wed, 19 Mar 08
Iomega Likes New EMC Takeover Bid
http://www.newsfactor.com/story.xhtml?story_id=58833
Iomega Corp., a data storage company best known for the Zip drive, said Monday it considers a revised $205.5 million takeover offer from EMC Corp. to be superior to a proposed all-stock transaction with a stockholder.

San Diego-based Iomega said EMC's revision to its earlier, unsolicited offer would increase the offering price for Iomega's 54.8 million outstanding shares to as high as $3.75 per share. An offer from EMC that Iomega disclosed a week ago proposed a price of $3.25 per share, or about $178.1 million.

While EMC's offer is nonbinding, Iomega said its board "has determined that the revised acquisition proposal from EMC would reasonably constitute a superior proposal" to an agreement reached in December with other parties.

Under that deal, Iomega agreed to acquire China's ExcelStor Group from a shareholder of the California company in an all-stock deal that would more than double the number of its outstanding shares.

Had that deal closed, Great Wall Technology Co. Ltd. -- an Iomega shareholder and parent firm of ExcelStor -- would have held a majority stake in Iomega, and ExcelStor would operate as a wholly owned subsidiary of Iomega. Financial terms were not disclosed.

Iomega had considered EMC's initial, lower offer inferior to the other transaction.

With the higher offer, Iomega said will enter into discussions with EMC that could lead to a definitive acquisition proposal.

Dave Farmer, a spokesman for Hopkinton, Mass.-based EMC, said in statement, "We're encouraged by Iomega's decision to move ahead with EMC discussions, and look forward to next steps."

EMC's storage services are largely geared toward corporate clients, and acquiring Iomega would expand EMC's business with small businesses and consumers.

Iomega, a 28-year-old company with about 300 employees, is best known for the more than 50 million Zip storage drives and 300 million Zip disks it has sold since 1995.

But Zip products now make...

Wed, 19 Mar 08
Are Handset Sales Set for a Fall?
http://www.newsfactor.com/story.xhtml?story_id=58801
On Mar. 10, Texas Instruments, a leading supplier of semiconductors for cell phones, set off shock waves in the multi-billion-dollar mobile industry by lowering its first-quarter growth estimates for sales of wireless chips. TI pinned the blame on weakening demand from a major customer for high-end chips used to power third-generation phones.

Investors made the assumption that the client might be Finnish giant Nokia, which accounts for nearly one-third of TI's wireless chip business. On Mar. 11, investors drove down shares in the world's top handset maker by as much as 4.75 percent. The key question: Did TI's warning signal a broader industry slowdown?

Consumers Curb Spending

Financial analysts clearly are worried. Although part of TI's retrenchment is likely due to a first-quarter inventory correction, there's growing concern that the handset market -- especially for pricey high-end models favored in the U.S. and Western Europe -- may be feeling the effects of economic downturn and slower consumer spending.

Consider Said Nafea, a Parisian shopper in his 30s checking out new handsets at the FNAC electronics emporium on Paris' Champs-Elysees. He has a three-year old Samsung that fits nicely in the front pocket of his jeans. And while he'd like something newer, with more bells and whistles -- especially an Apple iPhone -- he has decided to wait until he can afford it.

Customers like Nafea are what worries experts. The typical pattern in first-quarter mobile-phone sales includes a relatively weak January and February, following fourth-quarter holiday purchases, and then a sharp uptick in March. All indications from sales channels in recent weeks were that everything was going as expected. So, TI's slowing chip orders in March hinted at deeper problems in the market.

Analysts Aren't Surprised

That's why "there was a heck of a lot of drama" after TI's announcement, says Mark McKechnie, an analyst at American...

Tue, 18 Mar 08
Japanese ISPs To Block Online Pirates
http://www.newsfactor.com/story.xhtml?story_id=58851
Against the backdrop of Comcast's blocking of the popular peer-to-peer program BitTorrent, a Net neutrality bill in Congress and a Hollywood call for Internet service providers to stop illegal file-sharing, comes this news from Japan: Service providers are set to block Internet service to heavy users of peer-to-peer software.

The Yomiuri Shimbun newspaper reports that Japan's four major ISP organizations plan to form a working group with copyright groups representing authors, composers, publishers and software developers to establish guidelines for disconnecting users who download from Winny and other popular P2P programs.

Under the agreement, copyright organizations would identify the IP addresses of users who are downloading their content and provide the information to the ISPs. The providers would then send a warning e-mail. If the downloading continued, the ISP would disconnect the user temporarily, or even cancel the account entirely.

No Privacy Concerns

It is a bold move that ISPs have been cautious about making thus far. Two years ago, a Japanese ISP proposed cutting off users detected using Winny and other P2P software, but backed off after Japan's Internal Affairs and Communications Ministry regarded that as illegal Internet snooping.

The current approach is different, says technology blogger George Ou, because copyright holders merely need to download the P2P system, search for their content and obtain a list of IP addresses serving the content.

"This method doesn't involve any of that politically dreaded DPI (deep-packet inspection)," Ou wrote. Indeed, it is now impossible for ISPs to examine the content of P2P transfers, since the latest programs are "already fully encrypted at both the protocol and data level," according to Ou, an outspoken opponent of Net-neutrality legislation.

Bandwidth Problem Solved

If content owners lurk as users on the systems, searching for and downloading their content, they automatically get a list of IP addresses that provided the content....

Tue, 18 Mar 08
Apple Launches 802.11n Mobile Base Station
http://www.newsfactor.com/story.xhtml?story_id=58847
Apple is keeping up with the wireless times. On Monday, the company updated its AirPort Express mobile base station with 802.11n, the latest standard approved by the Institute of Electrical and Electronics Engineers (IEEE).

The new model delivers up to five times the performance and twice the range of the previous model, according to the company. Priced at $99, the AirPort Express can be plugged directly into the wall for wireless Internet connectivity and USB printing at home, or it can be taken on the road and used wherever there is an Internet connection. The AirPort Express features AirTunes, which works with iTunes to let users wirelessly stream iTunes music from a PC or Mac to any room in the house.

No big surprises with this Apple product release, according to Michael Gartenberg, a wireless analyst at JupiterResearch. "Apple has migrated almost all of its wireless efforts over to 802.11n. It makes sense that the AirPort Express would to go there [too], as the ultra-mobile wireless device with the ability to stream music and content using AirTunes," he said. "It made sense for Apple to get that device over to the n specification to match up with the rest of the product line."

A Portable AirPort

The AirPort Express features a single-piece design with portability in mind. The unit weighs 6.7 ounces. PC and Mac users alike can use AirPort Express to share a single DSL or cable broadband connection with up to 10 simultaneous users.

Users can also wirelessly share a printer that is connected to the USB port. The product's advanced security features are designed to safeguard data on networked computers with support for Wi-Fi Protected Access (WPA/WPA2), 128-bit WEP encryption and a built-in firewall.

Apple now includes 802.11n as standard in its entire line of AirPort base stations and Mac...

Tue, 18 Mar 08
Print Media Popular Online, But Money Is a Problem
http://www.newsfactor.com/story.xhtml?story_id=58846
Despite years of hype about the impact of bloggers and the so-called Long Tail on the news business, traditional media sources are increasingly popular online even as their offline businesses continue to go south.

The idea of "The Long Tail" was that a great multiplicity of blogs and citizen journalism sites could match or exceed the value of traditional news gathering. But the reality is "more complex," says the Project for Excellence in Journalism's new report, State of the News Media 2008.

"Looking closely, a clear case for democratization is harder to make," the report said. "Even with so many new sources, more people now consume what old-media newsrooms produce, particularly from print, than before."

Advertising Woes

Indeed, traditional media, derided by some as "mainstream media," represents more of an oligarchy online than in print. According to researcher Matthew Hindman, the top 10 news sites represent 29 percent of all Web traffic but only 19 percent of newspaper circulation.

In the newspaper sector, circulation fell 2.5 percent and overall advertising revenue fell 7 percent in 2007. Even online advertising grew just 20 percent, compared to 30 percent growth in previous years.

"For 2008, the hope is that a collaboration of more than 400 daily papers with Yahoo will generate a kick of as much as 10 percent to 20 percent in online advertising because it will be much easier to buy and place ads under the new arrangement," the report said.

Hope in Innovation

Newspaper Web sites are much improved -- with "a 24/7 diet of breaking news, an array of multimedia features and a wave of redesigns" -- but they have yet to figure out how to adequately monetize the efforts, the report said. The New York Times killed its online paid subscription service, which had 200,000 subscribers, and Rupert Murdoch announced plans to unleash much...

Tue, 18 Mar 08
AT&T Continues Rolling Out IP-Based Phone Service
http://www.newsfactor.com/story.xhtml?story_id=58844
AT&T continues to roll out Internet Protocol-based voice services through its U-verse network, announcing Monday the availability of the service in Sacramento, Calif. This is the fourth market for such a service, following launches in Michigan, Connecticut and Kansas.

The IP voice service fills out the company's triple-play offering with cable TV, high-speed Internet, and now voice on one bill.

AT&T's 'Fiber-Rich Network'

AT&T said its U-verse voice service is a "managed IP-based service that is delivered over AT&T's fiber-rich network, unlike many Voice over IP (VoIP) providers that offer best-effort digital phone services over the public Internet." AT&T said its service provides better sound quality, reliability and calling features.

The advanced features that AT&T is highlighting include a single voice mailbox that can be reached from any phone or PC, and an online management portal so users can manage call preferences, contacts, call history and other preferences.

It also highlighted Call History, for viewing the most recent incoming or outgoing calls online, and Click to Call, which allows the user to dial any number in the Call History by clicking with a mouse or using the U-verse remote TV control. There is also an online Address Book, a Locate Me feature so an incoming call can ring on up to four wireless or landline numbers, and traditional calling features such as screening or blocking.

Focus on Price

Bruce McGregor, an analyst with industry research firm Current Analysis, noted that U-Verse voice was first announced in January, and the company is now rolling it out and adding more services.

He called it a "compelling" offer to customers compared to similar triple-play bundles from other phone and cable companies. AT&T has noted that it has features to differentiate itself from cable, including the AT&T U-bar, with customizable weather, news and traffic information; a YellowPages.com for searching;...

Tue, 18 Mar 08
'Spam King' Could Get 26 Years, $625,000 in Fines
http://www.newsfactor.com/story.xhtml?story_id=58831
They call him the "Spam King." He was one of the world's most prolific e-mail spammers, allegedly responsible for sending millions of spam e-mails. And he plead guilty on Friday to federal charges of mail fraud, wire fraud, and failure to file a tax return. His name is Robert Alan Soloway.

Soloway, 29, was arrested last summer after being indicted by a grand jury in U.S. District Court in Seattle. His trial was scheduled to begin in two weeks, but that changed when federal prosecutors dropped 37 counts, including all of the identity-theft cases, in a plea bargain. The charges against Soloway could send him to prison for up to 26 years. He also faces up to $625,000 in fines.

"We believe that there were extensive losses to thousands of victims," Assistant U.S. Attorney Kathryn Warma told The Seattle Times. U.S. District Court Judge Marscha Pechman will decide Soloway's fate.

False Promises

According to the indictment, between November 2003 and May 2007, Soloway operated Newport Internet Marketing, which offered "broadcast e-mail" software and services. These consisted of high-volume commercial e-mail messages with false and forged headers, relayed to recipients using botnets (infected computers).

According to prosecutors, Soloway and his company made several false and fraudulent claims about the products and services. Among them was a claim that the addresses used for the bulk e-mail were opt-in.

The Web site promised a satisfaction guarantee with a full refund to customers who purchased the broadcast e-mail product. However, according to the prosecutors, customers who later complained about the goods and services they had purchased or who asked for refunds were threatened with additional financial charges and referral to a collection agency.

Stop Buying Spam-Advertised Goods

Sophos's Security Threat Report research reveals that 95 percent of all e-mail is spam, of which 32 percent contains links to adult or...

Tue, 18 Mar 08
Red Hat Will Buy Systems Integrator Amentra
http://www.newsfactor.com/story.xhtml?story_id=58830
Red Hat will acquire privately held Amentra, a provider of systems-integration services to smooth the transition to service-oriented architecture (SOA) and business process management (BPM) projects.

"We are now focused on expanding further into the enterprise," said Red Hat Vice President Craig Muzilla. "The depth of solution-oriented consulting services provided by Amentra will help enterprises begin deploying JBoss Enterprise Middleware products with confidence."

Strong SOA Growth Ahead

The acquisition is intended to complement Red Hat's recently announced Enterprise Acceleration Initiative, which targets the delivery of products, programs and services to help enterprises accelerate IT deployments, particularly in SOA and BPM. It comes amid an accelerating IT drive to adopt SOA, according to the latest survey from Forrester Research.

"A year ago, our data highlighted a general slowness in moving from SOA planning to actual use of SOA," said Forrester Research Vice President Randy Heffner. "This slowness disappeared in 2007's data, with strong growth in current use of SOA across North America, Europe and Asia Pacific regions."

Even better, "a strong majority of current SOA users plan to do more SOA," Heffner noted. "... more and more SOA users are seeing its role for enabling strategic business transformation."

Heffner pointed out that the most critical aspects of SOA are business-oriented. "SOA technology is merely a foundation for business-oriented restructuring of IT's processes and deliverables," he added.

An Open-Source Middleware Play

Amentra has more than 140 employees at its offices in Philadelphia, Charlotte, Tampa, Richmond and Washington, D.C. When the deal is final, Amentra will function as an independent Red Hat company, with existing customers continuing "to receive the benefit of Amentra's model, as they do today, with the breadth and depth that comes from the many synergies that Red Hat and Amentra bring to each other," said Amentra CEO Matt Ernst.

Red Hat spent $350 million...

Tue, 18 Mar 08
Microsoft Licenses Flash Lite for Windows Mobile Users
http://www.newsfactor.com/story.xhtml?story_id=58829
Apple CEO Steve Jobs has said Flash isn't good enough, but Microsoft disagrees. In a move against Apple's iPhone, Microsoft is licensing Flash Lite technology -- even as it promotes its own Silverlight platform as an alternative to Flash.

Adobe Systems announced Monday that Microsoft will license Flash Lite for its Internet Explorer Mobile browser in Windows Mobile phones. The deal also includes licensing of Adobe Reader LE for viewing PDF documents sent as e-mail attachments or made available as Web downloads.

'Vibrant Web Experiences'

John O'Rourke, general manager of the mobile communications business at Microsoft, said bringing Flash Lite to Windows Mobile users will provide the "vibrant web experiences and access to entertainment" that users want from the Web.

The move also provides access to a technology that Apple is refusing for the iPhone. Earlier this month, Jobs told news media that Flash technology is not yet ready for the iPhone. At Apple's shareholder meeting, he said Flash Lite is not powerful enough, and that regular Flash, designed for full-featured computers, runs too slowly.

"There's this missing product in the middle," Jobs told Dow Jones news service.

His dissing of Flash disappointed consumers and developers encouraged by blog reports that it was only a matter of time before Flash landed on the revolutionary iPhone.

'Big Win for Flash Lite'

"This is a big win for Flash Lite," said Sean Ryan, an analyst with industry research firm IDC. He added that even though Apple has decided against Flash Lite, the iPhone still offers a high level of entertainment, including playing YouTube videos. He also noted that Apple's recently released software development kit will enable third-party developers to create new applications for the iPhone.

But the bigger problem for video and other full-feature entertainment on the iPhone, he said, is the same as for other devices -- bandwidth. He pointed...

Tue, 18 Mar 08
FCC Defends Its Complaint Handling
http://www.newsfactor.com/story.xhtml?story_id=58812
The Federal Communications Commission processes 95 percent of the citizen complaints it receives but does a poor job of tracking how it resolves them, congressional auditors reported Thursday.

The Government Accountability Office said the agency "needs to improve how it collects and analyzes data on complaints received, investigations conducted and enforcement actions taken to better manage its enforcement program."

In response, FCC Chairman Kevin Martin said "the GAO put forward valuable recommendations" and that prior to the report's release, the commission had "identified these issues and is already in the process of implementing measures to address them."

Martin also said that since he became chairman, the commission has been responding to 100 percent of consumer complaints and has collected a record amount of fines, forfeitures and consent decree payments.

The GAO analysis examined data encompassing 454,000 complaints between 2003 and 2006.

The GAO, the investigative arm of Congress, said the FCC processed about 95 percent of the complaints it received, opened about 46,000 investigations and closed 39,000.

About 9 percent of the closed investigations resulted in an enforcement action, while 83 percent resulted in no enforcement. The GAO said it could not determine why the investigations were closed without action because "FCC does not systematically collect these data."

The agency did its own analysis and said the vast majority of closures were due to a lack of information or a determination that no violation had occurred.

The report criticized the agency for failing to set performance goals which prevent it from "assuring Congress and other stakeholders that it is meeting its enforcement mission."

The investigation was sought by Rep. Ed Markey, D-Mass., chairman of the House Energy and Commerce telecommunications and the Internet subcommittee. Markey used the results to push for state enforcement authority over the wireless industry.

"The GAO's report makes clear that any legislation establishing national consumer protection...

Tue, 18 Mar 08
Sprint Nextel Fate Source of Speculation
http://www.newsfactor.com/story.xhtml?story_id=58809
Sprint Nextel Corp.'s plummeting stock price and the expected exodus of millions of subscribers this year have yielded a fresh round of speculation about the company's future.

But analysts disagree whether the nation's third-largest wireless carrier is ripe for a takeover, is likely to begin selling parts of its operation to generate cash and make itself more agile, or will soldier on as-is.

"Any time you have a stock that's down as much as this one is and with management departures and things like that, people start speculating on all kinds of things that the company may or may not do to improve things," said Todd Rethemeier, an analyst with Soleil Securities.

So far neither Sprint nor its prospective suitors will comment on the rumors.

In the meantime, investors seem skeptical of a turnaround: Sprint's shares have lost more than half their value since the beginning of January. They lost 23 cents to close at $5.99 Thursday.

Sprint, based in Overland Park, Kan., has struggled since acquiring Nextel Communications Inc. in August 2005. Two weeks ago, it announced it had lost 683,000 wireless subscribers with annual contracts and expected to lose another 1.2 million in the current quarter and a similar amount in the second quarter of 2008.

A Merrill Lynch analyst speculated this month that Deutsche Telekom, the parent company of No. 4 wireless company T-Mobile, might consider buying Sprint to bulk up and prevent an escalation of flat-rate pricing in the industry.

But the two carriers' technologies are incompatible, a challenge Sprint has already seen enough of in the merger with Nextel.

The Wall Street Journal has surmised that Mexico's Carlos Slim, who operates the dominant wireline and wireless networks in that country, might see Sprint as a way to get into the U.S. wireless market.

"We do note that it still has compelling assets that could...

Tue, 18 Mar 08
Microsoft To Buy Web Ad Analysis Company
http://www.newsfactor.com/story.xhtml?story_id=58806
Microsoft Corp. plans to buy Rapt Inc., plugging a hole in its suite of tools for Web publishers and advertisers, the software giant said Friday.

Microsoft did not say what it will pay for the privately held San Francisco company.

Rapt's software and consulting services help Web site publishers tweak how they package and price display-ad space.

Scott Howe, a general manager in Microsoft's advertiser and publisher solutions group, said Rapt's system is similar to the one airlines use to set ticket prices and track available seats.

Microsoft plans to add Rapt's programs to the Web publisher tools it gained when it acquired aQuantive last year for $6 billion.

The move "puts us way ahead of what other offerings are available in the market," Howe said in an interview, likening Microsoft plus Rapt to a jet plane -- and competitors, including Google Inc., to a bicycle.

Microsoft has had hands-on experience as one of Rapt's customers. Tom Chavez, Rapt's chief executive, said in an interview that his company's technology helped boost MSN's ad revenue 15 percent to 20 percent, a typical improvement.

Rapt, which employs about 85 people, plans to remain in California. Microsoft expects the deal to close in the next month or so.

The Redmond, Wash.-based software maker has bought several companies to fill out its digital ad offerings, including AdECN, a stock market-like exchange where networks representing Web sites buy and sell ad space, and Massive, which inserts ads into video games.

Display advertising hasn't gotten as much attention as search ads, thanks to Google's unparalleled ability to turn search queries into billions of dollars in revenue.

But that may be about to change with Google's first big push this week into display advertising as it closed its $3.1 billion acquisition of online ad services company DoubleClick.

Microsoft, for its part, is waiting for Yahoo Inc. to respond...

Tue, 18 Mar 08
February Video Game Sales Up 34 Percent
http://www.newsfactor.com/story.xhtml?story_id=58804
U.S. video game sales -- including hardware and software -- jumped 34 percent in February to hit $1.33 billion, even with two top-selling consoles in short supply, according to data from market researcher NPD Group.

Nintendo's Wii and Microsoft Corp.'s Xbox 360 have been in such high demand stores are having a hard time keeping them in stock. Microsoft spokesman David Dennis said the company moved up shipments during the holidays and hasn't been able to catch up since.

He added "we should be in good shape" by the time Grand Theft Auto IV, the highly anticipated latest installment of the Rockstar Games franchise, hits store shelves April 29.

The game, which will be available on the Xbox 360 and Sony Corp.'s PlayStation 3, is expected to boost sales of both consoles. Pre-orders have been better than expected, according to its publisher, Take-Two Interactive Software Inc.

Michael Pachter, an analyst with Wedbush Morgan, expects the game to sell about 9 million units during the company's fiscal year, which ends in October. Roughly 6 million of this, he added, will be to Xbox 360 owners.

February is normally a slow month for video game publishers coming off holiday highs, and consumers have also been cutting back spending amid economic worries. Still, with "several marquee titles still to come in the front half of the year, the industry is poised to achieve another year of record-breaking sales despite difficult economic conditions," said NPD analyst Anita Frazier in an e-mail.

The sales figures surpassed what many analysts were expecting. Game hardware sales rose 19 percent during the month to $480 million, NPD said late Thursday. Of this, the portable Nintendo DS was the best-seller with 587,600 units, followed by the Wii at 432,000. The Xbox 360 sold 254,600 units even amid supply constraints.

"It appears that Wii and DS shortages...

Tue, 18 Mar 08
Bush Pushes for Better Cybersecurity
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A sudden spike in the number of successful attacks against federal government information systems and databases has led President Bush to propose a multi-billion-dollar response.

The number of incidents reported to the Department of Homeland Security rose by 152 percent last year, to nearly 13,000, according to a new government report. The security breaches, more than 4,000 of which remain under investigation, ranged from the work of random hackers to organized crime and foreign governments, says Tim Bennett, president of the Cyber Security Industry Alliance.

The increase and severity of data breaches prompted Bush to recommend a 10 percent increase in cybersecurity funding for the coming fiscal year, to $7.3 billion. That's a 73-percent increase since 2004.

"The president's put a lot of emphasis on this recently," says Robert Jamison, undersecretary for national protection and programs at the Department of Homeland Security. "We're concerned that the threats are real and growing. ... We're more vulnerable as a nation."

Members of Congress and experts in the private sector say the government's new initiative is overdue.

"There are more and more bad guys out there," says Sen. Tom Carper, D-Del., who chaired a Senate Homeland Security subcommittee hearing this week on government information security risks. In 31 percent of the infiltrations, he says, "agencies do not know who took the information or how much information was taken."

Rep. Jim Langevin, D-R.I., who chairs the House Homeland Security subcommittee with jurisdiction over the issue, says the Bush administration "has not paid nearly enough attention to cybersecurity" until this year. Now, he says, "they're at least trying to move in the right direction."

Homeland Security Secretary Michael Chertoff has made improving cybersecurity one of his top four goals for 2008. "It's the one area in which I feel we've been behind where I would like to be," he told reporters here...

Tue, 18 Mar 08
Microsoft CRM Takes on Salesforce.com
http://www.newsfactor.com/story.xhtml?story_id=58799
Microsoft offered a sneak peek of the newest version of its CRM application, Dynamics AX 2009, at Convergence 2008, a meeting of Microsoft Dynamics users. The release, due in the first half of this year, is aimed at small and midsize businesses with what analysts say is extremely aggressive pricing.

One major focus of the new release is managing compliance obligations, providing what Microsoft calls a "one-stop shop for compliance-related information." AX 2009 also includes enhanced global capabilities (such as multiple language support) that will give international businesses real-time visibility into operations such as overseas inventory of global locations.

Chris Alliegro, lead analyst with Directions on Microsoft (an independent research firm focused exclusively on Microsoft strategy and technology), said that Dynamics offers a big advantage over competing products: a familiar interface. "If you're a Microsoft shop, it's an interface you're already familiar with. Having your CRM functionality visible, accessible, and built into Outlook is a huge selling point for Microsoft."

Salesforce.com: The One To Beat



Alliegro told us that Microsoft is directly challenging Salesforce.com with its new hosted CRM service, which is in beta testing now and should be launched for general sign-up in the middle of this year. All indications are that Microsoft will launch a full-scale attack.

"They're coming at the market very aggressively," particularly in terms of pricing, Alliegro said. One version of the hosted product is expected to be $44 per month per subscriber, and $15 higher for the more enhanced version. (The main differences between the two versions, he said, are storage amount and the ability to support offline synchronizations.) He said that Salesforce.com's similar offerings cost about 50 percent more.

"It's fair to ask if Microsoft can even make money at that price point. That's something they're going to learn. I think that companies getting into...

Sat, 15 Mar 08
Bill Gates Asks Congress for More Tech-Worker Visas
http://www.newsfactor.com/story.xhtml?story_id=58817
Retiring Microsoft Chairman Bill Gates ventured inside the Beltway this week, calling on Congress to issue more visas for high-tech workers, then issuing a call for Federal Communications Commission approval of so-called white-space devices, and finally rhapsodizing on the future of computing to a local technology group.

High-Tech Visas

"It makes no sense to educate people in our universities, often subsidized by U.S. taxpayers, and then insist they return home," Gates told the House Science and Technology Committee at a hearing Wednesday. Gates has been a leading proponent of dramatically increasing the number of H-1B temporary visas issued to foreign computer scientists, allowing them to work in the United States.

During Gates' testimony, Rep. Dana Rohrabacher (R-Calif.) pushed back, saying those foreign experts will take jobs away from Americans. "If we bring [in] more people from the outside, will it not also depress the wages in our own country that people like yourself would have to pay your employees?"

"No," said Gates firmly. "These top people are going to be hired. It's just a question of what country they are hired in. When we bring in these world-class engineers, we create jobs around them. The B and C students are the ones who get those jobs around these top engineers. And if these top engineers are forced to work in India, we will hire the B and C students from India to work around them."

Push for White Space

Then it was off to the Northern Virginia Technology Council, where Gates and Microsoft Chief Research and Strategy Officer Craig Mundie made a push for adoption of technology to deliver wireless Internet over white space -- the vacant frequencies that provide buffers between television broadcasts.

"White-space activity today is sort of our last hope to get some good spectrum," Mundie said. "The only way to do it...

Sat, 15 Mar 08
Google Rolls Out Ad Manager From DoubleClick
http://www.newsfactor.com/story.xhtml?story_id=58815
Google isn't wasting any time leveraging its newest asset. After officially closing the $3.1 billion DoubleClick acquisition earlier this week, the company rolled out a new product: Google Ad Manager.

Ad Manager is a free hosted ad- and inventory-management tool that publishers can use to sell, schedule, deliver and measure their directly sold and network-based ad inventories. The new tool is currently in beta.

Google Senior Product Manager Rohit Dhawan said the tool helps publishers address the challenge of effectively managing their inventory and ensuring all their clients' ads appear on time. Google Ad Manager is looking for a niche with publishers who have small sales teams.

Different From AdSense

"Google Ad Manager effectively complements the DoubleClick Revenue Center, which is focused on publishers with larger sales teams ... we're committed to the continued development and enhancement of DoubleClick's offerings," Dhawan wrote in the Google blog.

Ad Manager is different from putting AdSense code into a site. The new tool is based on DART, the platform that powers DoubleClick. Ad Manager's tagging process lets publishers spend more time working with their advertisers and less time on their ad-management solution, Dhawan said. By providing detailed inventory forecasts and tracking at a small level, he wrote, Ad Manager helps publishers maximize sell-through rates.

Dozens of publishers have been using Ad Manager successfully in early trials, according to Google. But since the product is still in beta, it is available to publishers by invitation only. DoubleClick customers will not be affected.

Advance Planning

The technology world has been so focused on the regulatory issues surrounding the DoubleClick acquisition that there hasn't been much talk about the products Google might roll out after the merger. Ad Manager is the first of what advertisers may see come out of the DoubleClick integration, according to Charles King, principal analyst at Pund-IT...

Sat, 15 Mar 08
AT&T Offers Broad Coverage with BlackBerry Pearl 8120
http://www.newsfactor.com/story.xhtml?story_id=58814
AT&T has become the latest wireless carrier to offer enterprise customers the BlackBerry Pearl 8120 from Research In Motion. The svelte sapphire-blue smartphone, which features a built-in Wi-Fi radio, will give subscribers the broadest domestic and international wireless data coverage of any U.S. carrier, AT&T said.

"The BlackBerry Pearl 8120 combines AT&T's leading domestic and international coverage footprint with its position as the world's leading provider of BlackBerry services to create a compelling global solution for business customers," said AT&T Vice President Michael Woodward.

A Triple Play

Measuring just 4.2x2.4x0.5 inches and tipping the scales at 3.2 ounces, AT&T's Blackberry Pearl is equipped with a 240x260-pixel 65K-color display, a two-megapixel camera/camcorder, a multimedia player, and a microSD/SDHC memory card slot. The Pearl also makes a triple play with EDGE and Wi-Fi (802.11 b/g) radios and a Bluetooth 2.0 chipset for wirelessly connecting to compatible stereo headsets, car kits, and other accessories.

The smartphone offers RIM's popular BlackBerry e-mail and messaging capabilities along with the company's SureType word-completion software, a built-in spell checker and a user-customized dictionary. The Pearl also offers support for AT&T's Mobile Music subscription and unlimited Push to Talk services. In addition, the Pearl can deliver simultaneous access to both data and voice calls whenever the user is connected to a public hot spot, corporate wireless network or home Wi-Fi network.

RIM's Pearl, which is available to AT&T's business customers for as low as $199, also keeps overseas travelers connected to e-mail, Internet access and other mobile applications through data services in more than 145 countries, AT&T said. It added that Pearl users will be able to make or receive voice calls in more than 200 nations.

Full Steam Ahead

The Pearl's adoption by carriers in more than 20 countries since March 2007 is a strong indication that the popularity of RIM's...

Sat, 15 Mar 08
Verizon Reports P4P Can Slash P2P's Impact on ISPs
http://www.newsfactor.com/story.xhtml?story_id=58813
With the ongoing debate over Comcast's throttling of BitTorrent traffic as a backdrop, Verizon on Friday released a study that shows new technology can dramatically reduce the impact of peer-to-peer (P2P) systems on Internet service providers.

Yale University and Pando Networks worked with Verizon and Telefonica to test so-called P4P technology, which localizes P2P downloads. The results: the impact of P2P on Verizon's network was reduced 50 percent.

Current versions of P2P systems speed up downloads of large files by breaking the files into small bits and distributing them among users. When a BitTorrent user requests a file, machines all over the world respond by each sending off a little chunk of the file. But the software doesn't check where the machines are located.

Localizing Traffic

P4P works by favoring machines closer to the requesting user, which has an outsize impact on network efficiency because P2P packets represent a huge amount of the traffic that passes over an ISP's network. Verizon senior technologist Douglas Pasko reported that 58 percent of P2P traffic remained local with P4P, compared to six percent with plain P2P.

On average, P4P cuts the number of hops traffic takes to a destination from an average 5.5 hops to a mere 0.89 hops, Pasko said. That means not only substantial cost savings to Verizon but also much faster downloads for users. Pasko said users of Verizon's all-fiber Fios network downloaded movies twice as fast as normally, and in some cases six times as fast.

So will other ISPs jump on the P4P bandwagon to cut costs and deliver improved performance?

It's not likely, said Cynthia Brumfield, president of Emerging Media Dynamics, in a telephone interview. "You have to really be able to allow outside platforms to know something about your subscribers," she said. To implement P4P, Verizon communicated this information with select...

Sat, 15 Mar 08
Report Says Microsoft, Yahoo Discussed Merger
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Senior executives from Microsoft and Yahoo powwowed this week to discuss Redmond's $44.6 billion offer to acquire Yahoo, according to The Wall Street Journal. The reported gathering could bring the companies closer to agreement. Executives from the companies had not met to discuss Microsoft's Jan. 31 offer since Yahoo rejected it in February.

Citing "people familiar with the matter," the Journal reported that Monday's meeting wasn't a negotiation, and no bankers attended. Instead, Yahoo allowed Microsoft to present its vision of a merged company at a location near Yahoo's Sunnyvale, Calif., headquarters.

Yahoo executives reportedly listened, but further talks were not scheduled. It remains unclear, the Journal reported, whether Yahoo CEO Jerry Yang and Microsoft CEO Steve Ballmer were present at the meeting.

A Well-Timed Talk?

The talks come a week after Yahoo amended its bylaws to extend the deadline for nominating directors to its board from March 14 to 10 days after the public announcement of the date for its annual meeting of stockholders.

The amendment gives stockholders who want to nominate one or more directors, including Microsoft, more time. The extension also lets Yahoo pursue alternatives to a Microsoft takeover.

When Yahoo's board unanimously rejected Microsoft's offer, it said it would not even consider discussing acquisition possibilities unless Microsoft anted up at least $12 billion more. Microsoft will not offer more money, the Journal reported, unless it gets a closer look at Yahoo's books.

That's when talk of a hostile takeover began, and Microsoft seems determined. The company hired Bear Stearns CEO Alan Schwartz, along with Morgan Stanley and Blackstone Group, to help it acquire Yahoo.

Meanwhile, Yahoo began holding talks with other potential buyers, including News Corp. and Time Warner. News Corp. said earlier this week that it would not wrestle with Microsoft for Yahoo.

Is Yahoo Worth the Price?

Even at with the...

Sat, 15 Mar 08
Oracle's Mobile Sales Assistant for Road Warriors
http://www.newsfactor.com/story.xhtml?story_id=58798
Sales professionals are the original road warriors, so it makes sense that they should have mobile tools that will keep them up-to-date on customer data and other information that could help them close sales. Oracle's new Mobile Sales Assistant may be a valuable weapon for these warriors.

Mobile Sales Assistant gives customers access to Oracle CRM On Demand by leveraging the BlackBerry wireless platform from Research in Motion. The mobile application is designed to allow sales reps to more efficiently manage appointments, collaborate with colleagues, and connect with customers on the road.

The assistant features a simple interface that makes it possible to manage frequent tasks with a single click such as setting appointments, calling colleagues, text messaging, and even getting driving directions. Automated prompts at the end of calls remind users to enter notes so that important information isn't lost or forgotten.

Java Client

A Java client rather than a browser-based CRM solution, Oracle says Mobile Sales Assistant supports offline usage while leveraging the BlackBerry Enterprise Server's security and push-based architecture. Since it's delivered as a service, small and midsize businesses can benefit from predictable costs and ease of deployment and management.

"We connect a sales professional to CRM data and CRM services and also connect them to other services in the context of their day," Anthony Lye, senior vice president of CRM at Oracle, told us. "We connect them to location services, mapping services, PIM [personal information management] data, and use SMS and Vcard standards for social networking."

Web 2.0 for Sales Pros

The application highlights the growing importance of Web 2.0 to sales professionals. Access to social-networking groups and blogs enables sales professionals to keep up-to-date on news and events that may affect their customers. On its Web site, Oracle calls collaborative applications, social networking, and mobile the "driving forces behind Web...

Sat, 15 Mar 08
Acer To Launch 6-Speaker Movie Laptop
http://www.newsfactor.com/story.xhtml?story_id=58786
Acer Inc., the Taiwanese computer maker that bought Gateway last year, said on Tuesday that it now aims to take laptop users as close as they can get to the high-definition home theater experience.

The top model of the new "Gemstone blue" line of laptops has a screen with the same resolution as an a top-of-the-line HDTV, at 1,920 pixels by 1,080 pixels, and will have six speakers, including a subwoofer, for so-called "5.1" surround sound.

The computer will go sale next month in the U.S. for $1,999. A model with three speakers and a smaller screen (but still HD resolution) will cost $1,699. Both will have built-in Blu-ray disc drives.

The computer industry has long had its set of standard screen resolutions, while the consumer electronics industry has standardized on different ones. Acer's Blue line effectively adopts the consumer-electronics standard, which means that many movies and all HD TV shows will fill the screen, without black bars.

Acer said the laptops would be the first with 1,920-by-1,080 screens, and the top model is the first laptop with six speakers.

The $1,999 model has an 18.4-inch screen, placing it in the "desktop replacement" category of heavy laptops that aren't meant for more than occasional travel.

Even with six speakers, the laptop isn't capable of true surround sound, since that requires speakers on either side of the listener at ear level. Some current laptops use two speakers to simulate the enveloping experience of surround sound. Acer's laptop will do the same, but the simulation is better with six speakers than with two, said Acer senior vice president Jim Wong.

At the presentation in New York, Acer president Gianfranco Lanci said the company plans to keep the Gateway and eMachines brands it acquired last year and use them to meet its goal of selling 300 million units worldwide this...

Sat, 15 Mar 08
New Sales Program Pays Facebook Members
http://www.newsfactor.com/story.xhtml?story_id=58784
Facebook Inc.'s popular online hangout so far has proven to be a better place for promoting fun and games than peddling products.

But a new application aims to inject more commerce into the social playground by paying Facebook members who help merchants sell to their friends.

The program, called Market Lodge, revolves around the notion that consumers are more likely to buy merchandise or services recommended by someone they know and trust.

Market Lodge, made by a startup called bSocial Networks Inc., will pay Facebook members a 10 percent commission on all sales made on their recommendations.

Facebook tried to capitalize on the bonds of friendship last year by introducing a marketing system that includes broadcasting product endorsements among people who know each other.

The strategy hasn't paid off yet, largely because many of Facebook's users rebelled against a feature called "Beacon" that tracked and shared information about their purchases and other actions made on other Web sites.

Spurred by the backlash, Palo Alto-based Facebook now allows its users to turn off Beacon.

Conifer, Colo.-based bSocial is betting that Facebook's roughly 67 million users will be more receptive to an approach that dangles a financial incentive for participating.

Facebook members who decide to use Market Lodge can customize their own stores, selecting from more than 1,200 products sold by about 50 different merchants.

Once the personal store is set up, Facebook users can then invite others in their network to check out the stuff they're recommending. Market Lodge users can make purchases from their own stores and still qualify for the 10 percent sales commission.

All the inventory, order processing and delivery arrangements are handled by the merchants -- just as they would be for any other sale.

"We think this could be very lucrative for Facebook's members," said bSocial co-founder Sue Spielman.

More than 100 people have signed up for Market...

Sat, 15 Mar 08
Is the Internet Slowing Down?
http://www.newsfactor.com/story.xhtml?story_id=58782
Caution -- Heavy Internet traffic ahead. Delays possible.

For months there has been a rising chorus of alarm about the surging growth in the amount of data flying across the Internet. The threat, according to some industry groups, analysts and researchers, stems mainly from the increasing visual richness of online communications and entertainment -- video clips and movies, social networks and multiplayer games.

Moving images, far more than words or sounds, are hefty rivers of digital bits as they traverse the Internet's pipes and gateways, requiring, in industry parlance, more bandwidth. Last year, by one estimate, the video site YouTube, owned by Google, consumed as much bandwidth as the entire Internet did in 2000.

In a widely cited report published in November, a research firm projected that user demand for the Internet could outpace network capacity by 2011. The title of a debate scheduled next month at a technology conference in Boston sums up the angst: "The End of the Internet?"

But the traffic surge represents more of a challenge than an impending catastrophe. Even those most concerned are not predicting a lights-out Internet crash. An individual user, they say, would experience Internet clogging in the form of sluggish download speeds and frustration with data-heavy services that become much less useful or enjoyable.

"The Internet doesn't collapse, but there would be a growing class of stuff you just can't do online," said Johna Till Johnson, president of Nemertes Research, which predicted the bandwidth crunch by 2011, anticipating that demand would grow by 100 percent or more a year.

Others are less worried -- at least in the short term. Andrew Odlyzko, a professor at the University of Minnesota, estimates that digital traffic on the global network was growing about 50 percent a year, in line with a recent analysis by Cisco Systems, the big...

Sat, 15 Mar 08
No Flips, No Folds -- Just a Phone
http://www.newsfactor.com/story.xhtml?story_id=58780
It looks a bit like a child's toy, a walkie-talkie circa 1975, a cheap plastic throwback to the good old days when telephones were made for talking.

But to Spice Ltd., a telecommunications company in the world's fastest-growing phone market, this new product embodies the latest, greatest innovation in cell phone technology today: a handset priced at less than $20.

Spice, which is based in Noida, India, unveiled what it is branding "the People's Phone" at a wireless industry conference in Barcelona last month. The handset is an anomaly among mobile phones today: The number keys are big and bold. It is chunky and has no color screen -- in fact, it has no screen at all. Nothing about it flips, folds or slides. It is, as Spice's chairman, Bhupendra Kumar Modi, described it, "just a phone."

Yet if sales unfold according to Modi's plan, Spice could sell as many of the People's Phone as Apple sells of its iPhone, which sits at the other end of the coolness -- and price -- spectrum, with a price tag of $399 in the United States and more in some other markets. Both companies are aiming for sales of 10 million phones in their first year, which would be about a 1 percent share of the global market in 2008.

"There is a massive need for these phones," said Arun Kapoor, chief executive of Spice. "We are targeting an area from Iraq to Indonesia, and that area has a population of 2.5 billion."

India alone could keep the company in rupees. With more than 7 million handsets sold each month, the country accounts for more mobile phone sales than any other. Combine that with the fact that only 17 percent of the population now uses a mobile phone, and the potential is huge, analysts agree.

For now,...

Sat, 15 Mar 08
iPod Touch: The Future of Handheld Devices
http://www.newsfactor.com/story.xhtml?story_id=58778
Some see the iPod touch as just an iPhone without the phone. Others see it as a taste of things to come: Truly portable tablet computers that deliver features only Apple can bring to the table.

Apple's touch screen iPod is about to take a serious leap forward in capabilities come June when the App Store launches and third party developers can start offering their programs for the palm-size computer. It appears that Apple will be doing little to limit the applications developers can release, which means the iPod touch will be limited only by coder's imaginations.

Even Apple refers to the super-slim touch screen iPod as a "mobile Wi-Fi platform," and not as a media player, making a clear distinction between the touch and its other iPod products.

Right now, the iPod touch offers a subset of the features found on its cousin the iPhone. It doesn't include a cell phone, and Bluetooth is clearly missing, too. While Apple won't add cell phone features to the touch, it may well roll in Bluetooth at some point, which could potentially open the door to a wide range of wireless peripherals like keyboards, mice, and stereo headsets.

BusinessWeek pointed out that one feature missing from the touch is an e-book reader like Amazon.com's Kindle. The touch's current display size is fine for Web surfing and email, but it might be a bit small for reading books, which means if Apple is considering e-book support, it might also be considering a larger screen version of the device -- which could be the birth of a true Apple table-like computer.

E-book support could also lead to a new feature at the iTunes Store: Electronic versions of books, magazines, and other periodicals. "All that's needed are willing content suppliers for the iTunes Store, which could become a central distribution...

Fri, 14 Mar 08
Electronic Arts Launches Hostile Battle for Take-Two
http://www.newsfactor.com/story.xhtml?story_id=58796
Like a real-life financial video game, Electronic Arts has mounted a hostile takeover battle for Take-Two Interactive Software. The Redwood City, Calif.-based EA said Thursday that a wholly-owned subsidiary has commenced a tender offer for all outstanding shares of Take-Two for $26 a share in cash.

EA said the offer, valued at about $2 billion, represents a 64 percent premium over Take-Two's closing price on Feb. 15. The offer expires April 11.

Rejected Previous Offer

The New York-based Take-Two previously rejected an unsolicited buyout bid from EA, saying it was too low and ill-timed. One factor in the timing is that Grant Theft Auto IV is due out soon.

Take-Two is the publisher of the hit Grand Theft Auto video games. It has reportedly sold more than 65 million copies, becoming one of the most popular games, but it has also received heavy criticism for its use of crime and graphic violence.

Other bidders have approached Take-Two, it said, although it has not revealed details. A hostile bid, which was once rare in the technology business but is becoming more common, goes around a company's board of directors by appealing directly to shareholders.

Take-Two has experienced conflict between its board and shareholders on other occasions, such as the revolt by shareholders last year who threw out the management and many of the board members, and brought in ZelnickMedia Corp. to run the company.

EA's 'Label' Model

EA CEO John Riccitiello said the latest offer was "the best way" for Take-Two shareholders to "maximize the value of their investment," while adding additional intellectual properties to his company's portfolio. He said EA is prepared to "welcome Take-Two's talented creative teams to the great development organization we've built at EA."

In an open letter posted on the company's Web site, Riccitiello said that, as development costs rise in the games industry,...

Fri, 14 Mar 08
Movie Association Opposes Net-Neutrality Bill
http://www.newsfactor.com/story.xhtml?story_id=58795
The Motion Picture Association of America opposed Net-neutrality legislation pending in Congress this week. Speaking at the Hollywood trade show ShoWest, MPAA chief Dan Glickman called a bill sponsored by Rep. Ed Markey (D-Mass.) nothing more than "government regulation of the Internet."

Neutrality legislation "would impede our ability to respond to consumers in innovative ways, and it would impair the ability of broadband providers to address the serious and rampant piracy problems occurring over their networks today," Glickman said.

Glickman emphasized that Hollywood's current business model depends on post-release revenue streams: DVD sales and rentals and, to a modest extent, legal online downloads. "The future of the theater, unimpeded theatrical production and a vibrant aftermarket all depend on an Internet that remains free from government regulation. So we are all in this together," he said.

The Real 'Information Economy'

In an interesting appropriation of terminology, Glickman said Hollywood is the real "information economy that will create new jobs and new opportunities for the future."

"Technology increasingly is making new worlds of consumer-centric innovation possible, and it is handing us the opportunity to deal the first real body blow to online piracy, to begin to reach toward the day when we might be able to take it off the table and debug the system. It simply cannot be the policy of this country to say no to that," Glickman said.

"Today MPAA and all of our studios are standing up in opposition to broad-based government regulation of the Internet. We are opposing so-called Net neutrality government action," he said. "And in the process, we are standing up for our customers, for our economy and for the ability of content producers to continue to create great movies for the future."

Misrepresenting Markey

While he didn't mention them by name, Glickman was clearly referring to Comcast's blocking of Internet traffic...

Fri, 14 Mar 08
Patent Suit Challenges Apple iTunes Store and iPod
http://www.newsfactor.com/story.xhtml?story_id=58794
On Wednesday, ZapMedia Services filed a patent-infringement lawsuit against Apple. But this time it's not over the iPhone. The Atlanta-based company alleges Apple's iTunes Store and iPod music players infringe on its patented methods for distributing digital media over the Internet.

ZapMedia Services sued Apple in U.S. District Court for the Eastern District of Texas, a venue known for its friendly stance toward plaintiffs. ZapMedia Services claims the lawsuit comes after multiple attempts to resolve its concerns with Apple over infringement of ZapMedia Services' patents.

"The complaint alleges that ZapMedia Services' property is being exploited in a manner which is unlawful, and by law ZapMedia Services is therefore entitled to a reasonable royalty on Apple's revenues related to the infringement," said Steven G. Hill, of Hill, Kertscher & Wharton, LLP, ZapMedia lead litigation counsel.

Two Patents Granted

Here's the story as ZapMedia Services tells it: Beginning in the late 1990s, ZapMedia, the predecessor of ZapMedia Services, created a digital media platform. As part of its strategy, ZapMedia developed a system by which it could provide hardware, software and content to consumers to allow them to gain control over their digital media assets.

In 1999, ZapMedia applied for two patents, each of which is entitled "System and method for distributing media assets to user devices via a portal synchronized by said user devices." One of the patents was granted in March 2006. The other was granted Tuesday.

In the course of its efforts, ZapMedia Services said it met with many major technology and media companies around the globe, including Apple, to describe its vision in great detail. Without asking ZapMedia Services for permission, the company claimed, Apple unveiled its own system. Apple announced its iPod MP3 player with an integrated iTunes software application in October 2001 and its iTunes Store in April 2003.

ZapMedia Services said it...

Fri, 14 Mar 08
Zoho Launches Web-Based HR Freeware
http://www.newsfactor.com/story.xhtml?story_id=58792
Running your small business just got a little easier. Zoho, which already offers a host of free software-as-a-service applications, has launched a beta of Zoho People, a human-resources management tool.

Aimed at small and midsize businesses, Zoho People offers a range of HR functions that include everything from defining organizational structure to recruiting new workers. It's designed for companies with more than 30 employees -- the size at which keeping tabs on employees in ad hoc ways (such as Excel spreadsheets) becomes unmanageable, according to a blog on the Zoho site.

Zoho already offers a suite of free Web 2.0 tools that compete with big-name Web applications, such as Google Apps. At the Zoho Web site, small-business owners can find integrated word processing, presentation, meeting and project-management tools. Most are free, though the company does offer some fee-based versions (for example, the Zoho CRM solution is free only for the first three users; after that, it costs $12 per month).

Made for Non-Geeks

Like the other Zoho applications, Zoho People is user friendly rather than tech-centric. For example, there are 28 premade forms (such as expense reports), but if you need to add or change some of a form's fields, you don't have to call in a programmer; instead, you can open another tool, Zoho Creator, and customize the form simply by dragging and dropping.

HR managers can restrict access to forms and customization tools. So employees can find the forms they need and update personal information, but not gain access to compensation or other private data. In addition to forms, Zoho People has modules for recruitment, checklists, organization, self-service, and roles and permissions. Some of them are available only to an administrator, who can set access parameters for different modules.

Safeguarding Your Data

Though convenient, Web applications such as Zoho raise the...

Fri, 14 Mar 08
Microsoft To Buy Virtual PC Manager Kidaro
http://www.newsfactor.com/story.xhtml?story_id=58791
Microsoft said it will acquire Israel-based Kidaro, which has developed desktop virtualization products for enterprise applications. The financial terms were not disclosed.

Managing desktops across a large business can be complex, Microsoft executives said. Issues such as application compatibility, mobility and business continuity can be addressed with virtual PC technologies, said Shanen Boettcher, general manager of Microsoft's Windows product management team. "Kidaro's seamless user interface and management capabilities allow enterprises to more easily use and manage virtual PCs," he added.

Aiding Vista Migrations

Kidaro's Managed Workspace product allows enterprise data and applications to run within a 'transparent virtual machine wrapper' built upon Microsoft Virtual PC, noted Patrick O'Rourke, senior product manager at Microsoft's Windows Server Group. "The wrapper provides enterprise-class management, deployment and a clean user experience," he said.

In addition to taking on Kidaro's three founders with the deal, Microsoft intends to retain Kidaro's overseas R&D team, which makes "sense since Microsoft already has an R&D center in Israel," O'Rourke said. Kidaro's products will be melded into future updates of the Microsoft Desktop Optimization Pack for software assurance "under the name Microsoft Enterprise Desktop Virtualization," O'Rourke added.

The acquired products are expected to enable Microsoft's software-assurance customers with enhanced subscription to accelerate Windows Vista migrations. Moreover, enterprise managers will be able to apply IT policies in a locked-down mode that still gives end users access to the underlying host operating system. In addition, companies will be able to reduce IT investments by delivering desktop PC virtual images that are independent of hardware or local desktop configurations, Microsoft said.

Future Opportunities

Despite Microsoft's announcement, Gartner Vice President Michael Silver said there hasn't been much adoption of PC virtualization in enterprises.

"Today, virtual machines are used by developers, help desk, and technical sales people, but not by the mainstream desktop user," Silver noted....

Fri, 14 Mar 08
AOL Acquires No. 3 Social Network Bebo
http://www.newsfactor.com/story.xhtml?story_id=58790
Can AOL return from near-oblivion by entering the hot social-networking arena? Once the darling of Wall Street but more recently known as the burying ground for Netscape, Time Warner's AOL is throwing its hat in the ring with an $850 million acquisition of Bebo.

Social networking is dominated by MySpace, owned by News Corp., and Facebook, which has a minority investment from Microsoft. AOL says Bebo -- which stands for "blog early, blog often" -- is the No. 3 social network in the U.S. and No. 1 in Ireland and New Zealand.

But No. 3 is a long way from No. 1. News Corp. estimates MySpace's value at $15 billion, and Microsoft's $240 million investment in Facebook last year gave founder Mark Zuckerberg's company a $10 billion value. The $850 million value for Bebo barely registers in those elevations.

Building on Platform-A

AOL is betting Bebo will be the cornerstone of its resurgence as an advertising-based company. "Bebo is the perfect complement to AOL's personal-communications network and puts us in a leading position in social media," said AOL CEO Randy Falco.

Falco said AOL was attracted to Bebo's success and its potential for further growth; its vision of a "truly social web"; and the "monetization opportunities that leverage Platform-A across our combined global audience."

AOL spent $1 billion acquiring a portfolio of online advertising companies, including ADTECH, buy.at, Lightningcast, Quigo, TACODA and Third Screen Media, to create its Platform-A advertising system.

Executive Departures

The Bebo purchase comes just a day after AOL announced the departure of Curt Viebranz as head of Platform-A. Viebranz came to AOL as part of its purchase of TACODA and is being replaced by Linda Clarizio, president of Advertising.com, an advertising network that forms a key part of Platform-A. Two other Platform-A executives departed in the past month.

Noting the executive shake-up, John...

Fri, 14 Mar 08
Activision Fights Back in Guitar Hero Patent Suit
http://www.newsfactor.com/story.xhtml?story_id=58789
Guitar Hero just made its way into the Guinness Book of World Records: Gamer's Edition 2008, but Gibson Guitar would seemingly rather see its developer in court. Claiming its innocence and looking for exoneration, Activision is welcoming the showdown in a patent dispute that has gamers tuned in.

The drama began when Gibson Guitar filed a patent claim against Activision in January, alleging that its Guitar Hero franchise violates a 1999 patent Gibson had filed for technology to simulate a musical performance.

The suit struck the wrong chord with Activision. The company is now suing Gibson, saying its game doesn't infringe on the patent. Activision filed suit in U.S. District Court in Los Angeles on Tuesday. The video-game maker has asked the court to officially declare that the game does not infringe on Gibson's patents.

Gibson: Stop Playing Our Tune

Gibson's patent shows a method for simulating a live performance using a musical instrument, a 3-D headset with stereo speakers, and a prerecorded concert. Gibson's claim seeks damages in the form of license payments for using the technology, or an injunction against future sales of Guitar Hero games.

Gibson claims Activision is taking advantage of Gibson's patented technology without properly compensating the guitar company by continuing to sell Guitar Hero game software or instrument controllers. Activision took exception to the allegations and made its case known to the court.

"Despite being aware of the Guitar Hero game for many years, Gibson has encouraged Activision to manufacture and sell devices it now alleges infringe" the patent, the lawsuit said. By waiting three years to file a claim against it, Activision said the guitarmaker granted an implied license. Activision already licenses the rights to model its controllers on Gibson guitar models and to use their likenesses in the game.

Game Winner: Activision

Activision has the better argument,...

Fri, 14 Mar 08
YouTube Videos Will Appear on TV Through TiVo
http://www.newsfactor.com/story.xhtml?story_id=58776
TiVo owners will soon find YouTube on TV. The two companies on Wednesday announced an agreement to offer YouTube videos on a TV connected to a TiVo digital video recorder.

The new service will be available to broadband-connected subscribers of the TiVo Series3 DVR, including the new TiVo HD. Those users will be able to search, browse and watch YouTube videos on TV.

'Easy to Use Service'

TiVo users will also be able to interact with Google's YouTube directly, such as logging on to YouTube to get their playlists or favorite YouTube channels.

The agreement is a step toward connecting the "last mile" between Web videos and TV. TiVo Vice President Tara Maitra said the deal provides a "one device, one remote and one user interface" combining TV and Web videos into an "easy to use service."

Bobby Tulsiani, an analyst with JupiterResearch, said this is another step in YouTube's plan to spread its content and platform among a variety of devices and delivery systems. He pointed to deals putting YouTube on Apple's iPhone and Apple TV, and said the company is working on arrangements for other mobile devices.

That proliferation is not only onto other devices, but to other Web sites. On Wednesday, YouTube said it is providing application programming interfaces so developers can create Web sites or applications that offer YouTube content and functionality.

'A Bridge to the TV'

Essentially, the APIs enable other Web sites to become mini-YouTubes. The APIs allow direct uploading of videos to YouTube, posting of metadata such as comments or ratings, and a "chromeless" video player that can be branded.

The TiVo-YouTube deal "helps to cement a bridge to the TV," Tulsiani said, although "TiVo is not ubiquitous." He added that the model may not apply to other DVRs that don't have a broadband connection and mainly record broadcast programs.

However,...

Fri, 14 Mar 08
SaaS Data Storage Partnership Announced
http://www.newsfactor.com/story.xhtml?story_id=58770
Iron Mountain Digital and N-able Technologies are working together to provide backup and archiving services using software as a service (SaaS) technology. The alliance will help SMBs to monitor and remotely manage server-data backup and recovery.

N-able provides SaaS platforms that provide managed service providers (MSPs) with remote monitoring, management, and desktop support technology. In this co-marketing relationship with Iron Mountain Digital, the technology arm of storage giant Iron Mountain, the two companies will introduce channel partners to the other's services to educate the market on the benefits to SMBs of using managed services for backup and storage.

"We monitor and manage devices," looking at the network and its assets, and monitoring how much backup space is available, explained Elias Diamantopoulos, chief operating officer of N-Able. Iron Mountain's services, which address both immediate backup needs and offline backup, will be integrated into the N-able platform.

That hasn't happened yet, but will soon. The theory, Diamantopoulos said, is that corporations will identify the data to be retained and create retention policies. N-able software will monitor how much storage is available for the backups, and then key data will be automatically moved offline and archived via Iron Mountain Digital.

"The positioning is that end users can enable software to ensure that their networks and devices are managed and protected properly, and the content equivalently is managed and protected properly with Iron Mountain software," he said.

Outsourcing Trend

The partnership highlights the growing trend of SMBs to outsource as a way to save money, while getting a predictable amount for budgeting IT expenditures.

"All these products can be delivered in a way that's cost-effective for SMBs. Once it's cost-effective for them, why not outsource it? You don't have to manage the day-to-day maintenance and management of the system," Diamantopoulos said.

Outsourcing also helps ensure that IT...

Fri, 14 Mar 08
HP Shifting to Digital from Analog
http://www.newsfactor.com/story.xhtml?story_id=58763
Hewlett Packard, the maker of personal computers and printers, is moving forward with a plan to increase its digital printing offerings as part of a trend toward a reduction in analog printing.

Fresh from a number of significant acquisitions, HP has introduced a series of graphic arts products and technologies to enhance digital printing, saying it aims to be "the global leader in digital graphic arts."

"We are going to lead the" transformation "of moving from analog to digital," Yariv Avisar, vice president and general manager of large-format printing industrial solutions for HP's imaging and printing group, said in an interview on the sidelines of a conference in Tel Aviv.

This conversion is "our main strategy," he said. "All these acquisitions and products and activities that we are doing is mainly to accelerate this conversion."

In its most recent acquisition, HP completed the $118.4 million purchase last week of NUR Macroprinters, an Israeli maker of industrial wide-format digital inkjet printers.

While only about 9 percent of all pages in the world are printed digitally, digital pages are growing more numerous much faster than analog ones, said Stephen Nigro, senior vice president of graphics and imaging business at HP.

"We're on the cusp with a lot of the sort of innovation coming from HP and others in the industry so that you'll see an acceleration of the shift from analog to digital," he said. "That shift mostly will happen in the graphics base."

Among HPs new offerings are a high-speed 76-centimeter, or 30-inch, inkjet platform for high-volume production of books, newspapers and direct marketing materials, new latex printing technologies and an expanded portfolio of HP Indigo presses.

Along with NUR, HP has made two other acquisitions in the graphic arts field in the past two-and-a-half years: an Israeli printer maker, Scitex Vision; and MacDermid Colorspan, a U.S....

Fri, 14 Mar 08
What Is Microsoft's Worst Nightmare?
http://www.newsfactor.com/story.xhtml?story_id=58760
If you Google the phrase "Microsoft's worst nightmare," the range of hits you get is entertaining for its breadth. Various pundits have proclaimed that the software giant's very worst nightmare is everything from Linux, Google and Firefox to software as a service, Cisco's digital home business and the Sony PlayStation.

They can't all be Microsoft's worst nightmare, so which one earns that distinction? The correct answer is none of the above.

The best way to gain insight into what Microsoft truly fears is to research the musings of Bill Gates. I've had enough encounters with Gates over the years to have recognized that the more he dismisses a competitor, the more he fears it. In 1999, when I asked him how concerned he was about Linux, he blew it off as a "darling of the press" that was nothing more than the equivalent of the first Windows NT kernel.

In a 1995 interview, when I asked Gates for his views on the emergence of Netscape, he derided media interest in the company as an "overreaction" because "an Internet browser is a trivial piece of software." Enlightening as that comment was, there was something else Gates said in that interview that revealed his worst nightmare.

I asked Gates what trend or development had occurred in the technology sector in the past 20 years that really caught him by surprise. His deadpan response: "Kaleida and Taligent had less impact than we expected."

Gates was referring to two software joint ventures formed in the early '90s by Apple and IBM that were already fading into oblivion. There was something different in his tone -- a biting sarcasm -- that reflected a degree of scorn that he seemed to reserve for the Apple/IBM combo. And it was telling.

Microsoft's worst nightmare is a conjoined Apple and IBM. No other single...

Fri, 14 Mar 08
Iomega Corp. Rejects EMC's Takeover Offer
http://www.newsfactor.com/story.xhtml?story_id=58746
Iomega Corp., the maker of data-storage devices, rejected an unsolicited $178.1 million takeover offer by EMC Corp., saying it wasn't better than a pending purchase agreement with Great Wall Technology Co.

Iomega's directors, who met Sunday, made the decision based on valuation and because "the proposed due-diligence contingencies were overly broad," the San Diego-based company said Monday in a statement. The $3.25-a-share bid was 22 percent higher than Iomega's March 7 closing price. Iomega has about 225 employees, including about 125 in Utah.

Great Wall, a computer maker based in Shenzhen, China, and ExcelStor Group Ltd. agreed to sell ExcelStor GWT, which markets Great Wall's products outside China, to Iomega in exchange for a 60 percent stake in Iomega and $50,000 in cash, according to a Dec. 12 statement. The deal would give Great Wall access to Iomega's distribution channels.

"We extended a compelling offer, and we're disappointed with the decision of Iomega's board," EMC spokesman Dave Farmer said in an interview. "We're looking forward to further discussions with Iomega."

Iomega rose 54 cents, or 20 percent, to close at $3.20 Monday in New York Stock Exchange composite trading, the biggest gain since Jan. 3. The shares had declined 23 percent this year before Monday. EMC fell 33 cents to $14.70.

EMC, based in Hopkinton, Mass., is the world's largest maker of storage computers. Since 2003 it has spent almost $8 billion acquiring companies, most of them focused on software. Chief Executive Officer Joe Tucci has used the acquisitions to expand sales beyond hardware aimed at large companies.

Iomega, founded in 1980, sells consumer and small-business oriented products, such as disk drives. Its distribution extends to more than 11,500 stores in the Americas, Europe and Asia, according to the company's Web site.

"Iomega is not really an innovator, so EMC would be buying their brand and distribution...

Fri, 14 Mar 08
Review: Scanning Documents Reduces Paper Clutter
http://www.newsfactor.com/story.xhtml?story_id=58745
Every time the mailman comes to my house these days, I am reminded of the late, great Roy Scheider in "Jaws," remarking, "You're gonna need a bigger boat."

My family is literally drowning in paper, from bills to IRA statements to annual reports to prospectuses to personal letters. And our efforts to file it all and then purge it all at the correct time has been woefully ineffective, with the number of kids and jobs and life issues we have going on.

I recently turned to a new idea, mainly scanning everything that arrives in the door and shredding the paper. The idea is pretty simple. My bills are more or less paid automatically, anyway. I only keep a checkbook around for the seemingly unending number of checks I need to write for Boy Scouts, Girl Scouts and school lunches. So I can look at the statements and use a small autofeed scanner to record the statement for posterity.

The one I am using is an IrisScan Executive 2, a small USB scanner about the size of a paper-towel tube (without the towels). It can scan any document, photo, letter or business card into a PDF, Microsoft Word, Excel or Outlook document in a few seconds.

In my case, I have a small home server (by small, I mean smaller than a shoebox) with a couple of redundant drives where I keep all of our important photos and documents. The scanner is hooked up to an old laptop designated for this purpose, and the documents are automatically saved on the server.

The scanner installed in a few minutes, the optical recognition software so far has worked flawlessly, and we're down a few shoeboxes of paper. All for less than $200.

The best part I can see is if you were a traveling executive or salesman, I...

Thu, 13 Mar 08
AOL Shakes Up Advertising Division
http://www.newsfactor.com/story.xhtml?story_id=58774
While Google and Microsoft battle over online advertising, AOL has quietly named a new president for its Platform-A group. Lynda Clarizio assumed the reins as part of the consolidation plan for AOL's advertising business. Platform-A combines Advertising.com, Tacoda, Lightningcast, Ad Tech and Third Screen Media.

Clarizio previously served as president of Advertising.com. In her new role, she will lead AOL's advertising network and report to AOL president and COO Ron Grant.

"Lynda Clarizio is the perfect choice to lead Platform-A to its next stage of growth as we consolidate and integrate the organization, and focus on bringing our unmatched advertising network to market," Grant said. "There's no one better qualified to do this than Lynda, whose track record at Advertising.com has been nothing short of stellar."

The Promise of Platform-A

Clarizio replaced Curt Viebranz, a former president of Tacoda who became Platform-A's first president at its launch last fall. Clarizio came to AOL from the Washington, D.C., law firm of Arnold & Porter, where she was a partner and served as AOL's outside counsel on transactional matters.

"With Platform-A, we are creating a unified suite of marketing solutions to enable advertisers to harness the full power of digital media to meet their marketing needs," Clarizio said. "We also offer publishers a comprehensive set of tools and technologies to manage and monetize their advertising inventory. As Platform-A evolves, we will be organizing ourselves to create stronger alignment among our teams to put us in the best possible position to achieve our strategic goals."

AOL has spent nearly $1 billion on online advertising acquisitions to build Platform-A. The unit leverages consumer brands like AIM, Moviefone, MapQuest and AOL.com; behavioral targeting through Tacoda; and Advertising.com's reach across multiple networks. According to comScore Media Metrix, Platform-A reached 167 million unique visitors in February and reaches 90 percent of the...

Thu, 13 Mar 08
APIs Will Put YouTube Features on Other Web Sites
http://www.newsfactor.com/story.xhtml?story_id=58773
If you thought YouTube was everywhere, you ain't seen nothing yet. The popular Web site for user-supplied videos announced Wednesday that it will provide application programming interfaces (APIs) to allow even more access from other sites and applications.

The APIs will let developers upload videos to Google-owned YouTube from other Web sites, or play YouTube's videos on other sites. The expansion could transform YouTube from primarily a hub of user-supplied videos to a hub of services providing video and personalization features across the Internet.

'Chromeless' Video Player

YouTube already allows other sites to present or search YouTube videos, but the new tools will let developers essentially turn a site or online application into smaller and separately branded versions of YouTube. A "chromeless" video player, for instance, can be stripped of the YouTube brand, added to another site, and marked with that site's look and brand.

YouTube said the free APIs will help it reach beyond the browser so users can "discover and share compelling video content wherever they are."

It added that the tools provide "wholesale access to our extensive video library, worldwide audience, and the underlying video hosting and streaming infrastructure that powers YouTube."

Builders of Web sites and Net-connected software will be able to customize and control their own player, allow videos to be uploaded to YouTube, and enable users to comment and rate videos from the site or application. Information like titles, descriptions, ratings, favorites and the like can be added, and the top-rated videos in various locales can be chosen.

'Spraying Content'

Michael Gartenberg, an analyst with JupiterResearch, said YouTube's APIs are part of a larger trend of "spraying content across the board" over the Web, and YouTube is doing it in a big way.

Even TV networks and movie studios are spreading content with the NBC Universal-News Corp. joint venture Hulu.com, which launched...

Thu, 13 Mar 08
Developer Reactions to Apple's iPhone SDK Are Mixed
http://www.newsfactor.com/story.xhtml?story_id=58772
Developers are flocking to the iPhone software development kit with 100,000 downloads, Apple said Wednesday. "Developer reaction to the iPhone SDK has been incredible," added Philip Schiller, Apple's senior vice president of worldwide product marketing.

Schiller also said a million people watched the video of last week's SDK launch, "further demonstrating the incredible interest developers have in creating applications for the iPhone."

Finances and Games

Several developers commented on their plans.

"We're excited that the iPhone expands the ways our customers can solve key financial tasks wherever they might be," said Rick Jensen, a senior vice president at Intuit.

Scott Rubin, sales vice president for Namco Networks, said his company plans to release the classic Pac-Man and Galaga games.

NetSuite Vice President Luke Braud said his company is "excited at the opportunity to give every iPhone customer access to their critical business data anytime, anywhere."

Ethan Einhorn, who demonstrated a version of Super Monkey Ball at the launch, told the San Francisco Chronicle that he was surprised at the iPhone's graphic power. "The thing that was very exciting for us was we could make something closer to a console experience in a mobile game," he said.

Already Hacked

Meanwhile, hackers say they have already performed a "jailbreak" on the latest firmware included with the SDK. The iPhone Dev Team announced Wednesday that it had hacked firmware version 1.2, which will be deemed 2.0 in June, so it can run apps not approved by Apple.

Some developers are dismayed by some shortcomings in the SDK, most prominently the inability to run applications in the background. Third-party applications that developers create won't be able to multitask, even though Apple's own applications can.

"The Apple SDK, as many have come to find, has arguably crippled much of the functionality that set the iPhone apart when first released. Even simple features like the...

Thu, 13 Mar 08
Firefox 3 Nears Release with New Features
http://www.newsfactor.com/story.xhtml?story_id=58771
Mozilla has posted the fourth beta download of its next-generation Web browser for developers to review. According to head interface designer Mike Beltzner, Firefox 3, Beta 4 contains more than 900 enhancements from last month's release of beta 3, including drastic improvements in performance and memory use, stability fixes, and user-interface improvements.

"This is the twelfth developer milestone focused on testing the core functionality provided by many new features and changes to the platform," Beltzner wrote in a blog. "Testers can download Firefox 3, Beta 4 builds for Windows, Mac OS X and Linux in over 35 different languages."

Security Enhancements

Improved security is a major goal. To check Web-site authenticity, users will click on the site's favicon (image) in the location bar to see the identity of the site's owner.

A Web-site indicator turns green when users access sites that employ Extended Validation SSL certificates, which add a trust component to online secure transactions by mandating that the site operators undergo vetting by an established certificate authority. Web surfers also will be able to determine whether their Internet connections are protected from eavesdropping.

Built-in malware protection warns users whenever they visit pages known to install viruses, spyware, trojans or other infections. In addition, the contents of Web pages suspected to be phishing forgeries are no longer displayed.

Firefox 3's revised download manager lets users see, and even search on, the Web site from which they have downloaded one or more files. Users also will be able to resume downloads after restarting the browser or resetting their network connections.

New Features

A new full-page zoom feature lets users scale a Web page, or they can simply change the text size. In addition, an auto-complete feature allows typing in all or part of the title, tag or address of a page to...

Thu, 13 Mar 08
Blu-ray's HD-Format Victory Could Be Short
http://www.newsfactor.com/story.xhtml?story_id=58759
The high-definition DVD format war has been officially over since mid-February, when HD-DVD backer Toshiba threw in the towel. While studios and hardware manufacturers are adapting to the triumphant Blu-ray format, its victory could be short.

Transitory and Price Resistance

Microsoft has moved into the acceptance phase with a recent acknowledgment by CEO Steve Ballmer that its Windows operating system will support Blu-ray. The software giant said last month that it would stop manufacturing HD-DVD players for its Xbox 360. But Ballmer also told reporters that he considers a high-definition format a transitional medium, because eventually more high-definition content will be delivered over the Internet than by discs.

In addition, for a Blu-ray victory to endure, prices for players need to fall. Last week Sony Electronics President Stan Glasgow said prices for Blu-ray players would drop slowly. Sony's players are now upwards of $400, but Glasgow predicted prices under $300 by Christmas and under $200 by the end of next year. Other Blu-ray player manufacturers, such as Sharp and Samsung, are also expected to lower prices.

But Glasgow told The New York Times that the Blu-ray Association would try to avoid the extremely low prices that hit DVD players by not licensing the standard to Chinese manufacturers. He indicated there will be made-in-China players, but not soon.

DVDs Will Endure

As for the discs themselves, prices are beginning to fall. Amazon and other retailers are reportedly pricing some Blu-ray movies under $15. Some observers are predicting Blu-ray discs below $10 within a few months.

But the big question is whether consumers will buy the format. Paul Jackson, an analyst with industry research firm Forrester, said numbers are not yet out, although he added that anecdotal reports indicate consumers are beginning to move toward Blu-ray.

Yankee Group's Josh Martin noted that about 35 to 40 percent of American households...

Thu, 13 Mar 08
Patch Tuesday Plugs 12 Holes in Microsoft Office
http://www.newsfactor.com/story.xhtml?story_id=58758
On Patch Tuesday, Microsoft fixed 12 vulnerabilities in four security bulletins. Every one of them fixes bugs in Microsoft Office.

Included is a fix for the zero-day remote-code vulnerability in Excel. The exploit was made public in January and is corrected by the MS08-014 patch that addresses seven vulnerabilities in Excel. The other patches, MS08-015, MS08-016 and MS08-017, address issues in Outlook, Office and Office Web Components, respectively.

All the security bulletins are serious, but the Office Web Components patch stands out because these ActiveX components are widely distributed and relatively easy to exploit, according to Ben Greenbaum, senior research manager for Symantec Security Response. Symantec has observed attackers continuing to target Web plug-ins to quickly and quietly install malicious code.

"While browser plug-ins of all kinds represent an increasingly attractive vector for attackers, the security of other nonnetwork-facing applications is still a relevant issue as well," Greenbaum said. "With seven vulnerabilities being addressed in the Microsoft Excel patch, it's clear that users need to keep all software patched and up to date. Additionally, full-featured security software can protect users from attacks against some vulnerabilities well in advance of the availability of patches."

Don't Delay

Because all four of the patches affect Microsoft Office, these patches cannot be ignored or delayed, urged Don Leatham, director of solutions and strategy at Lumension Security. The broad install base of Microsoft Office, he said, makes Office vulnerabilities an enticing target for hackers and cybercriminals.

"Microsoft Outlook is the dominant e-mail client in use today, and e-mail is also one of the most common attack vehicles used by hackers against organizations," Leatham said. "This will make Bulletin 2, a critical, remote-code-execution vulnerability which affects virtually all versions of Outlook, the biggest priority for IT administrators. This vulnerability affects all versions of Outlook, including Outlook 2007 running on Windows XP...

Thu, 13 Mar 08
Software Lets You Send Secret Messages
http://www.newsfactor.com/story.xhtml?story_id=58757
Some pictures really do speak a thousand words.

Clandestine stuff has always fascinated me, but here's something that slipped beneath my radar: You now can conceal text inside any digital picture file, saved in commonly used JPG and BMP formats.

Using special software on both ends, the sender attaches a text message to a picture, and the recipient -- presumably via e-mail or IM service -- extracts the text by merely reversing the process.

I had to check it out, and a quick Google search found at least a half-dozen software titles to try, such as TiPi and Concealar. I settled on one that triggered the most hits: Encrypt Text in Picture from Seattle-based Ace Zip Soft. A visit to the company's Web site -- www.acezip.net -- revealed this and a host of other intriguing titles, all available as freeware.

Using the product couldn't be easier. On the left side of the interface window, browse for the picture you wish to use. On the right side, type or paste text you wish you embed, from a few words to a lengthy letter. Then click a button to embed the text and another button to save the picture. It's a good idea to save it as a copy rather than overwrite the original file.

Once completed, you can send the picture to someone else, who loads it up in their copy of the program. Click the "Read Text" button, and the message is revealed in a separate text window. You can change the text and save the picture again or clear all text from the picture.

Using Ace Zip's software, the embedded file size is always 241KB, and the picture is a maximum 271-by-303 resolution. If the original picture is larger, the application simply uses a 271-by-303 swatch, regardless of how it looks. In this case, the...

Thu, 13 Mar 08
Risks from Remote Workers Spur Security Spending
http://www.newsfactor.com/story.xhtml?story_id=58751
Workers outside the office are increasingly the targets of malicious attacks, and unsafe behavior by remote workers is one of the key factors behind a projected increase in security spending around the world.

New research sponsored by Cisco among more than 2,000 remote workers and IT professionals in 10 countries revealed that 62 percent of companies will increase spending on security this year. More than half of those companies will see security investments increase more than 10 percent compared to 2007.

Remote workers are less secure than ever, thanks to advances in Web technology and a new focus by attackers. "Web 2.0 is adding to a lot of the threats we're finding out there today," said Patrick Gray, senior security strategist for Cisco. Road warriors and telecommuters are visiting social-networking sites in greater numbers, prompting attackers to follow. That means protection strategies need to change, Gray said.

"We used to focus on internal security and beefing up VPNs and so on, and getting the message out on worms and viruses. Now we need to change the message to let our workforce know that we're seeing a lot of drive-by downloads of malware out there, specifically in those kinds of sites," Gray said, referring to social-networking sites like MySpace and Facebook.

Global Attacks

As security risks change, so do the targets of attacks, Cisco's research shows. In the past, malware attacks such as viruses were aimed at the densest markets for maximum effect. But social-engineering attacks that prompt victims into unsafe behavior such as opening suspicious e-mails are now targeting countries such as China, India and Brazil, where security education is lagging, said Mia Bradway Winter, senior awareness program manager with Cisco. "Workers in those countries are not really familiar with what social engineering is. It's easy to tap into that human element of trust, and...

Thu, 13 Mar 08
France Cleared To Fund Internet Search Project
http://www.newsfactor.com/story.xhtml?story_id=58744
France on Thursday won EU approval to give EU99 million (US$152 million) to several companies hoping to build a European rival to U.S. search giant Google Inc.

The European Commission said it could allow the government to fund French technology group Thomson SA and 22 other companies working on the QUAERO multimedia search project because the potential benefits to European research would outweigh any gain Thomson would win over rivals.

QUAERO -- Latin for "I search" -- would develop technology for working with all platforms, including desktops, mobile devices and televisions, and would be sold to TV companies, filmmakers, post-production facilities and anyone who creates or uses audiovisual content.

Just under half the funding for the five-year EU199 million (US$306 million) project will come from the French state.

The EU executive says this helped fill a funding gap for something that might not otherwise win financial support because the companies have divergent interests and the chances of the project's success were uncertain.

Thomson hopes the research will help it offer better Internet protocol distribution technology to deliver television programs or films online.

The EU also said the grant would not help Thomson gain any market power because rivals should also keep up their investment in research and development. EU rules forbid governments granting money to companies if that would give them an unfair advantage over competitors.

Last year, the EU cleared the German government to give EU120 million (US$165 million) for the German arm of the project, called THESEUS. That money will fund "icebreaker" companies -- Siemens AG, SAP AG, Deutsche Thomson oHG and EMPOLIS GmbH, owned by Bertelsmann AG -- to kick start research. Later, the German funding would be spread out to smaller firms.

Fragmented European research efforts are one of the reasons blamed for the region lagging so far behind the United States on cutting-edge...

Thu, 13 Mar 08
HP Finds New Resource: Its Loyal Former Workers
http://www.newsfactor.com/story.xhtml?story_id=58741
On a recent Saturday, John Toppel, a retired Hewlett-Packard sales manager, did not spend his leisure time golfing or mowing the lawn. He spent it at a local electronics store extolling the virtues of HP laptop computers to customers.

He was not paid by the store or by Hewlett-Packard, for that matter. Toppel, 62, left the technology company four years ago, but he remains a volunteer cheerleader for Hewlett-Packard, one of thousands of its retirees whom the company is trying to galvanize into an auxiliary army of senior marketers, good-will ambassadors and volunteer sales people. None of them get paid. They do it, they say, because of their affection for the company.

"I feel like I have two marriages: a wonderful marriage at home for 36 years and a wonderful marriage at HP," Toppel said. "I guess that's now a former marriage, but I still have strong feelings for it."

Across the United States, companies are making use of retirees as part-time or temporary workers. They are taking advantage not only of their expertise, but also of their desire to stay engaged with the world through work.

Hewlett-Packard's twist is particularly unusual in Silicon Valley, where long-term company loyalty is as rare as pinstripe suits. People here switch jobs and companies on Internet time, chasing the latest technology developments and the chance to cash in stock options or catch initial public offerings.

But Hewlett-Packard, founded in 1939 before there even was a Silicon Valley, has tens of thousands of alumni, many of whom spent decades at the company, which is based in Palo Alto, California. Old-timers express a familial loyalty, telling stories of eating meals and drinking coffee with the founders, David Packard and William Hewlett, or receiving baby blankets from Packard's wife, Lucile, when their children were born.

In a move that Hewlett-Packard says...

Wed, 12 Mar 08
Sprint Upgrade Boosts Mogul Transfers to DSL Speeds
http://www.newsfactor.com/story.xhtml?story_id=58754
Sprint has rolled out a new software upgrade for its Mogul handset that will transform the device into a speed demon capable of achieving blistering broadband speeds on a par with DSL.

The free software release boosts the Mogul's average download speeds to the 600 Kbps to 1.4 Mbps range -- a significant improvement over the 400-700 Kbps rates previously achievable. Even better, the new software throttles up average handset upload speeds from just 50-70 Kbps to the 350-500 Kbps range.

"The Mogul by HTC now delivers the full power of the Sprint Mobile Broadband Network from the convenience of a handset, giving our customers a speed and capacity advantage unavailable anywhere else in the marketplace," said Sprint Vice President Danny Bowman.

Lightning-Fast Data Transfers

Sprint's speed-boosting technology, called EVDO Revision A, sports several additions to the original communications protocol while remaining backward-compatible with an earlier iteration known as EVDO Revision 0. According to Sprint, the vast majority of its wireless-coverage zones across the USA have been upgraded to the pumped-up EVDO spec.

The download further boosts Mogul handset performance by delivering GPS functionality to enable Sprint Navigation -- a new service that provides audio and visual turn-by-turn directions and one-click traffic rerouting. Even better, the new software will enable the handset to function as a notebook modem capable of delivering lightning-fast data transfers to laptop subscribers.

Sprint's software release is the latest step in the wireless carrier's attempt to reverse recent declines in its subscriber base. Last month, Sprint revealed its subscriber count had declined by 108,000 customers in last year's fourth quarter. Company executives also said they expect to report additional subscriber churn for the current quarter.

To stem customer defections, Sprint is counting on its new "Simply Everything" plan, which offers subscribers unlimited voice and data for $99.99 a month....

Wed, 12 Mar 08
Hulu.com Ready To Offer Free Full-Length Shows
http://www.newsfactor.com/story.xhtml?story_id=58753
The future of long-form video programming on the Web will get a key test Wednesday, when one of the most anticipated new sites for video -- Hulu.com -- launches.

Hulu.com was created as a joint venture of NBC Universal and News Corp., and includes programming from Time Warner Bros. Television Group, Lionsgate, the National Basketball Association and the National Hockey League. It is concluding its successful, invitation-only beta period, during which a reported five million viewers visited the site in the past month.

Homer, Buffy and Earl

Launch day will include full-length episodes of more than 250 classic or recent TV series, including The Simpsons, Buffy the Vampire Slayer, and My Name Is Earl, as well as such movies as The Usual Suspects, Requiem for a Dream, Mulholland Drive, The Big Lebowski, and Ice Age. Free video programs are offered on Hulu from more than 50 popular cable networks, movie studios and Web-content providers. Hulu shows are also being distributed on AOL, Fancast.com, MSN, MySpace and Yahoo.

The highly visible endeavor has already received criticism from observers who say YouTube and other popular video sites already dominate Web video. Hulu.com will test porting network or movie studio long-form fare into a media environment dominated by short clips, many of them user-generated.

Mike McGuire, an analyst with industry research firm Gartner, said the key test for extending TV fare online will be getting sufficient viewership in an environment where programs and clips are also available a la carte on iTunes or at the home sites of the networks.

'Very Impressive'

Forrester's James McQuivey said the launch is "very impressive" because the site is delivering on its initial promises, including higher-quality video, more TV shows than any other source, and "a better advertiser experience."

He noted that Hulu has been paying close attention to what advertisers want. For...

Wed, 12 Mar 08
Exploding Digital Data Growth Is a Challenge for IT
http://www.newsfactor.com/story.xhtml?story_id=58752
Society is creating digital data at a rapid pace, exceeding previous estimates by at least 10 percent, a new study by industry analyst IDC says. The report, called The Diverse and Exploding Digital Universe, estimates the size of the digital universe at 281 exabytes, or 281 billion gigabytes. The increased estimate is due to faster growth in digital cameras, digital-TV shipments and a better understanding of information replication.

The study also estimates that by 2011, the digital universe will grow an order of magnitude -- 10 times -- from its size in 2006.

Imperatives for IT

IDC said IT organizations will face three basic imperatives to deal with this explosive growth of data.

First, they will need to "transform their existing relationships with the business units," IDC said. "It will take all competent hands in an organization to deal with information creation, storage, management, security, retention and disposal." The digital universe is a business problem, "not a technical problem," IDC said.

Next, organizations must develop "organization-wide policies for information governance: information security, information retention, data access, and compliance," the analysts said.

Finally, IT must "rush new tools and standards into the organization," including storage optimization, unstructured data searches, database analytics, virtualization, and management and security tools. "All will be required to make the information infrastructure as flexible, adaptable, and scalable as possible. We have many of the tools in place -- from Web 2.0 technologies and terabyte drives to unstructured data-search software and the Semantic Web -- to tame the digital universe. Done right, we can turn information growth into economic growth."

Fast Growth in Images and the Cloud

The fastest-growing areas are related to digital television, surveillance cameras, Internet access in emerging countries, sensor-based applications, cloud computing, and social networks, the study found.

One intriguing development is the growth of packets over stored data. IDC researchers...

Wed, 12 Mar 08
Troubled Motorola May Spin Off Mobile-Device Business
http://www.newsfactor.com/story.xhtml?story_id=58736
The revolving door at Motorola could spin off a new business as an executive exodus continues. On the heels of Paul Liska stepping into the CFO role, Motorola announced that Stu Reed, who was president of the mobile-devices business until Motorola President and CEO Greg Brown took over in February, will leave.

Reed and his team launched a number of key initiatives for the mobile-devices business that Motorola said it will continue. Reed also generated significant cost savings by consolidating suppliers and implementing a supply-chain strategy.

"We appreciate Stu's many contributions to Motorola and wish him the best in the future," Brown said. Motorola is searching for a leader for its mobile-devices business, which Brown told an audience at the Morgan Stanley conference last week is consuming 80 percent of his time.

Motorola's Decline

The executive face of Motorola began to change late last year. That's when Ed Zander, who was president and CEO, stepped down and Brown stepped in. Next, Padmasree Warrior, then chief technology officer, left. And last week, Chief Marketing Officer Casey Keller left the company.

The departures follow market woes for Motorola. Its third-quarter problems continued in the fourth quarter. The company recorded global mobile-device sales of 39 million for the fourth quarter, taking 11.9 percent of the market.

Motorola retained second place in annual sales, Gartner reported, largely thanks to the inventory it disposed of in the first half of 2007. Nevertheless, the extent of Motorola's troubles can be seen in the 9.7 percent drop in its market share in the fourth quarter compared to the same period in 2006.

Nokia continued its global leadership with a 40 percent market share in the fourth quarter, when it sold slightly more than 133 million phones. Samsung maintained second place and, although its market share slipped slightly, the gap widened between Samsung and...

Wed, 12 Mar 08
Wal-Mart Stops In-Store Sales of Linux-Based PCs
http://www.newsfactor.com/story.xhtml?story_id=58735
It seemed like the start of a brave new era. Last fall, Wal-Mart announced it had sold out its initial order of Everex's gPC, a super-cheap $200 computer running Ubuntu Linux and tuned to Google's online applications. Now Wal-Mart has opted not to reorder the machines for in-store sales, although it's still being sold online. "This really wasn't what our customers were looking for," spokesperson Melissa O'Brien told the Associated Press.

Wal-Mart sold the gPC in about 600 stores for a test, as well as online at walmart.com. Sales were "significantly more effective" online than on store shelves, it said. Wal-Mart is still carrying a newer version, the gPC2, for $199 without a monitor, and a laptop, the Everex CloudBook, for $399.

Bad Reviews

The difference between online and in-store sales could be explained by the appeal of inexpensive Linux machines to techies, while real-world consumers may be uncomfortable not buying a Windows machine or at least a Mac. But the gPC suffered not just from weak branding; according to reviews, it was underpowered.

"The gPC was slapped together to sell to Web-savvy people who have very little pocket money," Joel Santo Domingo wrote in a holiday-season review for PC Magazine. "My advice to those people? Save up for just a little longer and buy something for at least $450 that runs Windows Vista."

The gPC had "so many problems," Domingo said, "I would have a problem recommending it to anyone, regardless of their tech smarts (or lack thereof)." He said the gPC was capable of running Ubuntu, but just barely, was not nearly as "green" as advertised, and had poorly integrated links to Google, Firefox and Wikipedia.

A Microsoft Conspiracy?

Some conspiracy-minded bloggers thought Wal-Mart's decision had more to do with alleged close ties to Microsoft than objective sales testing. Cnet.com's Matt Asay pointed out that...

Wed, 12 Mar 08
With EC's Blessing, Google Acquires DoubleClick
http://www.newsfactor.com/story.xhtml?story_id=58734
On Tuesday, the European Commission cleared Google's $3.1 billion acquisition of DoubleClick without conditions. The EC review began six months ago and concluded the transaction is not likely to harm competition for online advertising.

With that approval, Google quickly closed its acquisition of DoubleClick.

The EC reasoned that Google offers free search capabilities and sells advertising through its AdSense network. DoubleClick, by contrast, sells ad serving, management and reporting technology to Web-site publishers and to advertisers and agencies, with a focus on relevant placements.

"The commission's in-depth market investigation found that Google and DoubleClick were not exerting major competitive constraints on each other's activities and could, therefore, not be considered as competitors at the moment," the EC said. "Even if DoubleClick could become an effective competitor in online intermediation services, it is likely that other competitors would continue to exert sufficient competitive pressure after the merger."

Will Google Rule the Roost?

The EC also analyzed the potential impacts of the Google acquisition on competing ad servers. During its investigation, third parties raised concerns that giving Google the power to control DoubleClick's tools could put Google in a position to raise costs for rivals.

Competitors also suggested that Google could require companies purchasing ad space to purchase DoubleClick's management and reporting tools.

However, the EC decided the merged company would not have the "ability to engage in strategies aimed at marginalizing Google's competitors, mainly because of the presence of credible ad-serving alternatives to which customers (publishers/advertisers/ad networks) can switch, in particular vertically integrated companies such as Microsoft, Yahoo and AOL."

The EC further found that a Google-DoubleClick merger would have no incentive to close access to competitors in the ad-serving market, mainly because it wouldn't be profitable.

Privacy Versus Antitrust

Greg Sterling, principal analyst at Sterling Market Intelligence, was not surprised that the EC approved the merger. But he...

Wed, 12 Mar 08
Wi-Fi's End Is Near, Ericsson Marketer Predicts
http://www.newsfactor.com/story.xhtml?story_id=58733
Enjoy Wi-Fi while you can, because the end is near. That prediction was made Monday by Ericsson's chief marketing officer, Johan Bergendahl.

The comment came in his keynote speech to the European Computer Audit, Control and Security Conference in Stockholm. According to news reports, he said Wi-Fi hot spots -- in places like Starbucks -- will become as outdated as telephone booths faster than many people think. He added that mobile broadband is growing faster than mobile or fixed telephony did.

Eclipsing Fixed Broadband in Austria

Bergendahl said that in Austria, mobile broadband is expected to eclipse fixed broadband this year, and the most popular phone in Sweden is a USB modem. He also pointed out that countries such as Austria, Denmark and Sweden offer mobile-broadband subscriptions for the equivalent of about $30 a month.

Bill Ho, an analyst with industry research firm Current Analysis, said price is the key from the consumer's point of view. "The throughput of Wi-Fi is better" than mobile broadband, he said, but it's often less secure. Mobile broadband is more widespread, but most consumers will make a choice based on advantages versus price.

Ericsson, of course, has a vested interest in this near-term scenario, since it is a key manufacturer of sections of the mobile-broadband infrastructure. For instance, the company has an agreement to put HSPA 3G technology into several Lenovo computers, a trend that is increasing. In his speech, Bergendahl predicted that HSPA will be as common within a few years as Wi-Fi is today.

International Roaming, Coverage

But even Bergendahl acknowledges that hurdles remain. He mentioned the problem of international roaming, which will involve cooperation between carriers.

Coverage, of course, is also a key area for improvement. One example was the room where Bergendahl gave his speech. It had no 3G coverage.

Some observers contend that Bergendahl is misreading...

Wed, 12 Mar 08
New Mobile Pen Converts Scribbles to Digital Form
http://www.newsfactor.com/story.xhtml?story_id=58728
Reporters spend a lot of time scribbling into notebooks and then typing those notes into a computer program. Now they and medical professionals, students and other serious scribblers can skip a step with a new electronic pen from IOGEAR that digitally converts notes, memos and drawings.

The pen looks, well, like a pen rather than a high-tech piece of electronics, and it is equipped with that lifeblood of pens known as ink. Simply jot down your thoughts (as many as 50 pages, or up to 8MB) on any piece of paper and the pen will send a signal that feeds your handwriting to a pocket-sized reader.

Wireless Convenience

Back at your desk, plug in the reader to a PC with a USB cable and your notes are exported as a JPEG file that can be shared with classmates or editors via e-mail. A CD included with the unit comes with optical character recognition software that works in a dozen languages.

The Mobile Digital Scribe is a cordless version of IOGEAR's Digital Scribe. Keith Renty, strategic business and product development manager, said the Mobile version does everything the previous version did, and then some. "It has greater flexibility because you don't have to be tethered to a computer," he told us. The Mobile version also added two more languages to its OCR software (which includes English, many Western European languages, Japanese, Korean, Chinese and Russian).

In the competition against other digital pens, Renty said the Digital Scribes are more flexible. "The advantage we have is both units use standard paper, and both use what appears to be a normal-looking pen," he said. Renty said the Mobile can also take advantage of Vista's Tablet PC features; it will work as a mouse or selection device as well as a pen.

In response to a reporter's question, Renty...

Wed, 12 Mar 08
'Personal Training' Creates Bonding Experience for Apple Customers
http://www.newsfactor.com/story.xhtml?story_id=58720
My "Creative" for the day, I was told, would be "Sundown."

I recently took a test tutorial through Apple's One to One program. The service, which costs $99 a year, allows anyone from a novice to an experienced techie to sit down with an Apple guru one hour a week for one year.

These eager teachers, dubbed Creatives, patiently unpack secrets to everything from the basics of operating an iPhone to movie making.

It's all part of the carefully cultivated Apple experience, one of the reasons the company's customers tend to be loyal.

Stepping into an Apple Store is a cross between attending a seminar led by graduate students and hanging out at Starbucks. In addition to the tech tutors, there are staff manning the "Genius Bar," Apple's help-desk-by-appointment that provides assistance when things get stuck.

You can also book an hour with a shopping assistant to help pick out the right machine.

But if you just want to hang out and listen to music on iPods, or check e-mail on the spotless new MacBook laptops and iMac desktops on display, no one will bother you.

"It's really becoming the Nordstrom of technology," said Michael Gartenberg, a vice president and research director for Jupiter Research.

When I arrived for my 10 a.m. appointment, Westfield Valley Fair was nearly empty, except for the gaggle of shoppers waiting to get into the Apple Store. I headed to an iMac with Sundown, whose name is more exotic than his closely cropped appearance, unlike the tattooed-and-pierced look of some Apple employees. Perched on black stools, we were quickly joined by others participating in Apple's version of study hall. Some brought in their laptops. It's not unusual for someone to lug in their iMac in a suitcase.

"You are the driver and I'm the navigator,"...

Wed, 12 Mar 08
New Devices Bring New, Immersive Interfaces
http://www.newsfactor.com/story.xhtml?story_id=58719
It has been more than two decades since Scotty tried to use a computer mouse as a microphone to control a Macintosh in "Star Trek IV."

Since then, personal computer users have continued to live under the tyranny of the mice, windows, icons and pull-down menus originally invented at the Xerox Palo Alto Research Center in the 1970s and popularized by Apple and Microsoft in the next decade.

Last year, however, the arrival of the Wii and the iPhone began to break down the logjam in technological innovation for the way humans interact with computers.

Both devices extend the idea of directly controlling objects on the screen and blending that ability with visually compelling physics software that brings computer screens to life in new, immersive ways.

With a Wii, a wave of the hand can slam a tennis ball in cyberspace; with the iPhone, a flick of a finger can slide a photograph across the screen like paper on a table.

The idea of directly manipulating information on a computer screen is almost as old as computer graphics terminals, going back at least to 1963, to Ivan Sutherland's Sketchpad drawing system, which he created at the Massachusetts Institute of Technology for his doctoral thesis.

Since then, a thriving scientific and engineering discipline has sprung up around systems that bridge what was originally called the man-machine interface.

There has been a broad exploration of pointing devices, alternatives to keyboards for entering information, voice-recognition technologies and even sensors that capture and interact with human brain waves.

What is new is a convergence of more powerful and less expensive computer hardware and an inspired set of mostly younger software designers who came of age well past the advent of the original graphical user interface paradigm of the 1970s and '80s.

This new generation is "mostly under 25," said Joy Mountford, who until...

Wed, 12 Mar 08
Monitoring Web Traffic Is Big Business
http://www.newsfactor.com/story.xhtml?story_id=58718
The Web site Apple.com attracted nearly 16 million American visitors last month. Some of them got there by typing in the address directly; others used a search engine, linking to company's site via nearly 25,000 different keywords, including "iTunes," "iPod" and "iPhone."

So says Compete, a company based in Boston that tracks Internet traffic. How does it know? It has installed its software in the computers of 100,000 Americans -- with their permission -- allowing the company to track their every movement on the Internet. It gets additional, anonymous data on about 2 million American Web users from Internet service providers.

That is a lot of people, but a far cry from the total U.S. Internet population -- more than 200 million, according to some estimates. Like other monitors of Internet traffic, including Nielsen Online, Hitwise and ComScore, Compete extrapolates total Web audience figures from such samples, in a system similar to the panel-based research that is used to measure television audiences.

Marketers rely on these numbers because they are skeptical about data submitted by individual Web publishers, which often seem to overstate their own audiences, at least by comparison with independent measures.

So, for all the talk of the Internet being the most measurable, accountable, transparent medium ever invented, it can still be a frustrating place for marketers who just want to know exactly how many people will see their ads.

Advertisers have been pushing Internet companies to produce more comprehensive, standardized data. But for now, in the absence of breadth, they are hungry for greater depth.

That is why Taylor Nelson Sofres, a market research company, said last week that it had spent $75 million, with as much as another $75 million still to come, to acquire Compete.

"We are listening to our clients, who have been telling us they want more and...

Wed, 12 Mar 08
Mobile Gaming Gets a Boost from Facebook, Nokia
http://www.newsfactor.com/story.xhtml?story_id=58668
A boom in social networking and a new delivery platform from Nokia may offer mobile video game publishers a lift after a lackluster year in 2007.

The mobile game market suffered an unexpected slump last year, with many developers and analysts pointing to a lack of interest from telecommunications operators in spending to market games.

Now they are looking at booming interest in new social networking sites, aiming to market the games on those sites themselves.

Digital Chocolate, one of the few global game publishers, has put its hit game Tower Bloxx on several networking and video game sites on the Internet. The game was installed more than 400,000 times in just four months on Facebook.

"The takeup has been better than any of our expectations," said Ilkka Paananen, head of game development at Digital Chocolate. "This year we will support all our key products with similar kinds of marketing."

The media research firm M:Metrics said the number of people who bought mobile games in the United States and Europe last year was almost unchanged from a year earlier, with preloaded games growing in popularity.

"The mobile games segment has been stuck in a rut for a long time now, with less than 5 percent of subscribers actually buying and playing games," said David Winterbottom, an analyst for Informa.

"Operators have spent very little on the marketing and promotion of new game titles," Winterbottom said, adding that around 90 percent of mobile game purchases had been through operator portals.

Informa expects revenue from mobile games to grow 23 percent this year to $4 billion, helped by Nokia's N-Gage game service which is set to reach the market in the coming weeks.

The N-Gage service would be downloaded on Nokia's multimedia phones, with access to trial versions of many games.

All major cell phone game publishers -- including Electronic Arts,...

Tue, 11 Mar 08
Web Sites Are Documenting What You Do Online
http://www.newsfactor.com/story.xhtml?story_id=58731
A new study from The New York Times is trying to pin down how just how much consumer data Internet companies have. Google, Yahoo, Microsoft, AOL and MySpace -- the five largest Web firms -- record at least 336 billion transmission events each month, according to the Times. That does not count their advertising networks.

ComScore conducted the analysis for the Times. Advertising executives say it is the first broad estimate of how much consumer data Internet companies have in their control. The results confirmed what privacy advocates have been warning about: Companies use the information to predict what content and advertisements Web-site visitors are likely to want to see.

"The Web companies are, in effect, taking the trail of crumbs people leave behind as they move around the Internet and then analyzing them to anticipate people's next steps," The Times reported. "So anybody who searches for information on such disparate topics as iron supplements, airlines, hotels and soft drinks may see ads for those products and services later on."

Behavioral Targeting Backlash

Search engines have embraced behavioral targeting, a technique that taps a user's recent activity to serve up relevant ads. But the industry has seen a backlash and there has been talk about government regulation.

Nine groups have asked the Federal Trade Commission to implement a "Do Not Track" list to protect consumers from having their online activities tracked, stored and used by marketers and advertising networks.

The list would require Web advertising companies who place persistent tracking technologies on consumers' computers to register with the FTC all the domain names of the servers involved. Developers would be encouraged to create browser plug-ins so users could download the Do Not Track list and prevent any Web site from collecting behavioral data.

"When you start to get into the details, it's scarier than you might suspect,"...

Tue, 11 Mar 08
Microsoft Seeks to Block Embarrassments in Vista Suit
http://www.newsfactor.com/story.xhtml?story_id=58730
Microsoft has asked a federal court to stop embarrassing disclosures in a lawsuit that claims Microsoft's Windows Vista marketing program intentionally misled consumers. U.S. District Court Judge Marsha Pechman granted class-action status to the lawsuit two weeks ago and Microsoft has appealed to the Ninth Circuit Court of Appeals.

The company asked for a stay that would block further disclosure of company e-mails. Last month e-mails surfaced showing Microsoft employees thought the "Vista Capable" marketing program, in which manufacturers could identify their hardware as ready to run Microsoft's new operating system, was confusing and misleading.

"Even a piece of junk will qualify" under the program, one employee wrote.

Bad Publicity

In asking for the stay, Microsoft attorney Charles Wright argued that continuing the case before the appeals court's decision would "cost Microsoft a substantial sum of money for discovery and divert key personnel from full-time tasks"; would intrude on "sensitive pricing decisions and strategies by OEMs, wholesalers and retailers; and would jeopardize Microsoft's goodwill with class members -- all with respect to claims that might not proceed on a class basis at all."

If the appeals court denies the class action, the additional discovery and the associated costs and bad publicity from the case would all be unnecessary, he argued.

"Plaintiffs' discovery almost surely will involve intrusion into the most sensitive pricing decisions of the OEMs, wholesalers and retailers who sell the PCs at issue and set their prices," the motion said. "Continued discovery thus will disrupt Microsoft's relationships with its business partners, a disruption that will be unnecessary if the Ninth Circuit reverses."

Expensive Discovery

And as the plaintiffs are allowed to search for consumers to join the class action, Microsoft would be subjected to more bad publicity, Microsoft's motion said. "The result will be nationwide publicity that impugns the [Windows Vista Capable] program....

Tue, 11 Mar 08
Microsoft Cuts Prices for Xbox 360 in Europe
http://www.newsfactor.com/story.xhtml?story_id=58729
In the shoot-out between video-game consoles, Microsoft has drawn a new weapon -- a major price cut in Europe. Beginning March 14, the 20GB Xbox 360 with one wireless controller will cost 270 euros (US$414), 80 euros cheaper. The Elite, with a 120GB hard drive, will be 370 euros (US$568), down 80 euros. And the Arcade entry-level model, with no hard drive, will drop 80 euros to 200 euros (US$307).

Cheaper Than Wii or PS3

The Arcade is now cheaper than the Nintendo Wii and the Sony PlayStation 3 (PS3) in Europe. Microsoft Vice President Chris Lewis said the "Xbox 360 is now mass market in Europe."

Van Baker, an analyst with industry research firm Gartner, said the move is clearly an effort by Microsoft to protect its installed base in Europe while enjoying the current advantage of getting paid in euros. In Europe, the Middle East and Asia, the Xbox 360 is in first place among current-generation consoles, with 42 percent of the market in life-to-date revenue.

"That advantage with euros is helping them to be aggressive" on pricing, he added. Baker said he expects Nintendo and Sony to follow suit -- in Europe. He predicted that prices in the U.S. will remain relatively stable for the time being.

As the jockeying for position continues, Baker said there will not be a clear winner as in past years. Instead, he said, a three-way split will continue as the installed base for each of the consoles is sufficient to interest game developers.

Shifting Positions

Nevertheless, the shifting positions are being watched by the industry. Last month, market researcher iSuppli reported that, while the Wii's worldwide installed base will be number one this year, the PS3 is growing rapidly with a 97 percent increase in its installed base. At this rate, iSuppli said the PS3 could have...

Tue, 11 Mar 08
Microsoft Is Already Thinking About Integrating Yahoo
http://www.newsfactor.com/story.xhtml?story_id=58727
While Yahoo looks for ways to thwart a Microsoft takeover, Microsoft is already planning to integrate Yahoo. In an interview Sunday, Ray Ozzie, Microsoft's chief software architect, told the Financial Times that the company will take its time, even if it means delaying potential shareholder benefits.

"Technology companies, if they dive in and just smash things together for smashing them together's sake, it's reckless, it's just simply reckless," Ozzie told the Times. "They have a number of different types of technologies. They have their own corporate culture."

Realizing the Synergies

Microsoft bid $44.6 billion for Yahoo in late January. Yahoo's board unanimously rejected that offer and said it would not even consider discussing an acquisition unless Microsoft antes up at least $12 billion more.

But Microsoft has persisted. Ozzie, who took the software reins from Bill Gates in 2006, is optimistic that the company can achieve its goals without rushing integration. He wants to avoid disrupting Internet users and advertisers rather than grabbing financial and other benefits from the consolidation.

As Microsoft sees it, the merger would create a more efficient company with synergies in four areas: Scale economics from audience size and increased value for advertisers; accelerated innovation from combined engineering talent; operational efficiencies by eliminating redundant costs; and innovation in emerging user experiences such as video and mobile. Microsoft believes these could be worth at least $1 billion a year.

To Integrate or Not To Integrate?

Ozzie has history on his side. A Booz-Allen study found that 68 percent of mergers fail because of poor integration. And according to a McKinsey study, only 23 percent of companies recover the costs of a merger.

"We can talk about the technology, but in the end this is a business decision," said Daniel Taylor, an advertising analyst at Yankee Group. "I'd be far more concerned with merging the...

Tue, 11 Mar 08
Infineon Will Sell Hard-Drive Business to LSI
http://www.newsfactor.com/story.xhtml?story_id=58726
Infineon Technologies has agreed to sell its hard-disk-drive operations to LSI under terms that were not disclosed. Infineon's HDD business designs, manufactures and markets chips to power and control the drives used in computers and gaming machines.

The sale, expected to close in the second quarter, is a step toward focusing on Infineon's core markets, said Vice President Sandro Cerato. "In LSI, we have found an excellent company with a mutual interest in supporting our customer base," Cerato added.

Looming SSD Migration

LSI expects the acquisition will further its goal of becoming the leading worldwide provider of silicon solutions for hard-drive makers, said LSI Executive Vice President Ruediger Stroh. "We expect the acquisition to immediately accelerate revenue with a top-tier customer, Hitachi Global Storage Technologies, while enhancing our competitive position in the desktop and enterprise space," he said.

Last August, Infineon agreed to pay $563.6 million to acquire LSI's mobility products business "to significantly strengthen our position at important mobile-phone makers," said CEO Wolfgang Ziebart. But when Infineon announced its new deal with LSI this month, the German-based chipmaker declined to elaborate.

One factor that presumably influenced Infineon make is the computer market's looming migration from chip-controlled mechanical hard disks to storage devices based on semiconductors. Research firms such as Gartner and iSuppli believe the new solid-state drives will be a disruptive technology because they are lighter, more resilient and faster than HDDs, which are also power hogs by comparison.

"With SSDs you get a much faster startup and resume, so the performance appears to be faster," said Gartner Vice President Leslie Fiering.

Moreover, head crashes on hard drives are eliminated because SSDs have no mechanical parts. "Right now, HDDs are tied with motherboards as the No. 1 source of PC failures," Fiering said.

Falling Prices

The cost of a solid-state...

Tue, 11 Mar 08
Columnist Harasses Facebook Founder in Interview
http://www.newsfactor.com/story.xhtml?story_id=58725
If Business Week columnist Sarah Lacy was looking to inject herself into the story when she interviewed Facebook founder Mark Zuckerberg, she succeeded. According to reports from the South by Southwest Interactive conference, Lacy repeatedly interrupted Zuckerberg and seemed intent on telling embarrassing anecdotes about how shy Zuckerberg was when he first met the press.

At one point, Lacy related a "mildly humiliating story" about an interview with Zuckerberg and asked him if he could say more than two words at a time, to which he replied, "That's really hard." There were other incidents where Lacy related "'embarrassing story about another time when I interviewed Mark' anecdotes," according to a reporter's blog about the event in Austin, Texas.

Interview a 'Train Wreck'

The audience rebelled against Lacy's antics, leading her to make defensive remarks from the stage. "Try doing what I do for a living," she said at one point. "It's not that easy."

This being South by Southwest, many audience members were reporting the debacle on Twitter.com. "Never, ever have I seen such a train wreck of an interview," audience member Jason Pontin commented.

Despite Lacy, Zuckerberg had some things to say, mostly in response to questions from the audience.

He talked about Facebook in terms of a world-changing mission. "There are a lot of really big issues with the world that need to be solved," he said, "and what we're doing as a company is basically building an infrastructure on which some of those problems can be solved."

"Why does there need to be a big organization in order to channel peoples' voices?" he asked. "Communication should be efficient enough that these people should have a voice, and issues that are important to these people should be able to be heard."

Zuckerberg said he sees Facebook as part of the "solid base" of communications,...

Tue, 11 Mar 08
Does Your Site Fall Short for Consumers?
http://www.newsfactor.com/story.xhtml?story_id=58712
When visitors come to your organization's Web site, are they finding what they're looking for? It may seem a basic question, but it's an urgent one: If visitors don't find what they need quickly and easily, your competitor's Web site is just a click away.

New research sponsored by search-technology firm InQuira Inc. shows that a customer's experience has to be satisfying or it will send him or her looking for an alternative. Customers who have a positive Web experience are three times as likely to buy than customers whose experience is merely neutral, and four times as likely to recommend the services of that company.

With most Web-based transactions completed without human assistance, ensuring that customers have a great experience is easier said than done. According to the InQuira research, three-quarters of online shoppers begin their quest at the manufacturer of the item they wish to purchase, but only 44 percent say they find enough information on those sites to meet their needs, a lost opportunity for that business. To remedy that situation, the first step is to understand the critical elements that lie behind a positive experience.

Speed and Efficiency

When a potential customer visits a company's Web site, there is some particular objective that he or she wishes to reach quickly and efficiently. There are four elements behind that objective, according to the InQuira report. Exploration, the first step, is the customer looking for information and resources, such as trying to understand the different kinds of MP3 players on the market. Next, the customer begins to assimilate this information and make decisions about which features are of most interest.

In the validation step, the customer uses objective evidence to validate his or her decision. This evidence could be professional reviews or magazine articles, comments from other buyers, and so...

Tue, 11 Mar 08
Adidas and Samsung Partner on Mobile Phone That Can Coach
http://www.newsfactor.com/story.xhtml?story_id=58702
Adidas and Samsung have teamed up for a new twist in training -- a mobile phone that can coach.

The German athletics company and South Korean electronics firm announced Thursday they have developed a mobile phone that works with Adidas shoes and apparel to plan, track and motivate users in training.

The device directs and motivates users during workouts by combining a mobile phone, heart rate monitor, stride sensor, MP3 player and the voice of an electronic "personal coach."

MiCoach hits retail stores in Europe this month and will roll out in the United States in 2009. It will cost about $300 to $600 (EU200 to EU400) in Europe, depending on the service plan users select. U.S. pricing has not been set.

"This is the most advanced coaching system that is out there," said Andrea Corso, spokeswoman for Adidas U.S.

The new Adidas-Samsung collaboration is the latest of several tech-sport partnerships. Most comparable is Nike Inc. and Apple Inc.'s Nike+, a wireless system that allows Nike running shoes embedded with a sensor to communicate with Apple's iPod Nano. An update this week allows users to plug their iPods into gym equipment and track their training there as well.

MiCoach is a bit more expansive because it includes a mobile phone and a camera. It also helps runners set goals and then reach them by monitoring their heart rates and telling them when to slow down or speed up to meet a goal for distance, fitness or calorie burn.

"This about getting to the next level, whether that is running a mile or running a marathon," Corso said.

Adidas will offer equipment and clothing for runners to attach miCoach and the heart monitor to themselves. The sensor can be attached to any shoe.

Tue, 11 Mar 08
Pioneer To Stop Making Plasma Panels
http://www.newsfactor.com/story.xhtml?story_id=58699
Pioneer Corp. will stop making plasma display panels in an effort to turn around its money-losing business, the Japanese electronics maker said Friday.

Pioneer plans to procure the panels, used in flat-panel TVs, from another company. It said it was in talks with Japanese rival Matsushita Electric Industrial Co., which makes Panasonic products, to purchase plasma display panels.

Pioneer used to be one of the leading developers of the technology but has fallen behind bigger companies like Matsushita and South Korea's Samsung Electronics Co. and LG Electronics Inc.

"We have judged that maintaining the cost competitiveness of plasma display panels, or PDPs, at projected sales volumes will be difficult going forward," Pioneer said in a statement.

Pioneer is sinking into the red for the fiscal year ending March 31, racking up a 15 billion yen ($145.6 million) loss for charges for restructuring its PDP TV business. It had previously forecast a 6 billion yen ($58 million) profit.

The decision to pull out of plasma TV panel production will chalk up a one-time cost of 19 billion yen ($184.5 million). But Pioneer said it will return to profit for the fiscal year ending March 2010.

J.P. Morgan analyst Yoshiharu Izumi said Pioneer's strategy to focus on high-end electronics products, which he dubbed "the Gucci approach," largely failed because consumers weren't willing to pay a premium for such products.

Last year, Pioneer announced a capital and operations tie-up with another electronics maker, Sharp Corp., for Pioneer to procure Sharp's liquid crystal displays -- the other major technology for flat TVs.

Pioneer said that partnership was going well. Pioneer is helping develop acoustic systems for new flat TVs, and will launch new LCD TVs in Europe this fall and steadily expand its lineup, the company said. Pioneer and Sharp will also work together on Blu-ray disc recorders and players, it said.

Pioneer's...

Tue, 11 Mar 08
CeBIT Went Green -- But Did Anybody Care?
http://www.newsfactor.com/story.xhtml?story_id=58697
The biggest European information technology fair went green this year. The problem was that there were not many people around to notice.

CeBIT 2008 was a slimmed-down, serious affair, cut back to six days from seven. Formerly sprawling exhibits were corralled into order by theme and publicity stunts were banished to the weekend, which now comes at the end of the show, not the middle.

The idea was to turn dwindling exhibitor and visitor interest into a virtue by using the lack of gadgety distractions to create a business-like arena where managers could get on with meeting, greeting and checking out the competition.

The result was an atmosphere free of the chaos of previous years but also devoid of the excitement, casting a feeling of desertion over the vast trade-fair site in this northern German city.

Most exhibitors who still come to CeBIT -- this year there are 5,845 of them, down 5 percent from last year -- use the show to explain unglamorous business-system products to potential clients.

Cisco was one of the few to bring up the problems that require these solutions as it introduced a new Internet router to help cope with an anticipated increase in monthly data sent over the Internet by 2011, when it is expected to reach the equivalent of 144 times all the printed matter in the world.

CeBIT organizers declared the theme of this year's show to be the environment and built a "green village" to house companies peddling products intended to increase corporate energy efficiency and reduce toxic waste.

"CeBIT Goes Green -- Big Time" was the main headline of CeBIT News, the official publication of the fair, on Wednesday, which recognized that "green IT" was a trend that was impossible to ignore as both energy costs and climate-altering carbon emissions soar.

Steve Ballmer, the chief executive of Microsoft...

Tue, 11 Mar 08
Ballmer: No Silverlight for iPhone
http://www.newsfactor.com/story.xhtml?story_id=58696
Apple's iPhone may be open to developers now, but don't expect to see Microsoft bringing its Flash competitor Silverlight to the handheld any time soon. CEO Steve Ballmer shared that tidbit during the MIX 08 conference in Las Vegas on Thursday, according to Computerworld.

Silverlight is Microsoft's multimedia platform designed to compete with Adobe's ubiquitous Flash. Like Flash, Silverlight is available for multiple operating systems and Web browsers. Unlike Flash, however, it does not share the same popularity.

One concern Mr. Ballmer voiced was over the 30 percent cut Apple will take from applications sold through the App Store, Apple's distribution system for iPhone and iPod touch applications. He commented "It sure seems like they're trying to charge a whole lot more money for it," and added that he was concerned Apple might charge a 30 percent fee for distributing an iPhone version of the free Silverlight.

While Apple CEO Steve Jobs did confirm during its iPhone SDK and enterprise road map event on Thursday that the company will take a cut off the top of every application sold through the App Store, 30 percent of nothing is still nothing, making the fee affordable even for Microsoft.

"Maybe Apple isn't welcoming open and royalty-free runtimes on [the iPhone]," Mr. Ballmer said.

Apple made it clear that the only programs it would block from the App Store included porno applications, malicious apps and programs that threaten user privacy.

Microsoft's lack of interest in bringing Silverlight to the iPhone will likely disappoint a very small handful of users, but not nearly as many as are lamenting the lack of an iPhone-native Flash player.

Tue, 11 Mar 08
Gearing Up for CRM 2.0 in Credit Unions
http://www.newsfactor.com/story.xhtml?story_id=58679
For years, credit unions have differentiated themselves from banks and other competitors by creating strong "trusted advisor" relationships and superior banking experiences for their members. But the rules of the game are changing quickly and in a big way.

This change all starts with the concept of customer relationship management. CRM is a strategy that has been pursued by credit unions ever since the term started being used in the early 1990s. Credit unions have also used the term member relationship management.

Over the years, there have been several different definitions of CRM, but they have always encompassed some common themes:

* CRM organizes processes and delivery of banking services to provide maximum member satisfaction.

* CRM should optimize revenue and profitability.

* CRM customizes strategies and delivery based on the needs and preferences of unique member segments.

* CRM must be planned and articulated at the enterprise level to achieve the desired return.

Most financial institutions recognize that CRM is an "umbrella" concept that includes several distinct components that require different tactics and systems, but which at the same time must be designed and managed with a single overall strategy. These components are:

1. Member profiling -- collecting and showing all member relationships and information to employees in a single "picture";

2. Contact history -- managing all member contacts, regardless of where they occur and whether they are financial transactions or non-financial encounters;

3. Marketing -- analyzing member profitability, demographics, and banking preferences and using that information to offer products and services that garner a larger share of the member's financial relationships;

4. Sales management -- managing employee sales efforts, referrals, cross-sells and incentive programs that reward employee behavior;

5. Sales and service automation -- creating an environment where members will have a consistent banking experience no matter how or when they transact business.

Why the Ground Is Moving

While these...

Sat, 8 Mar 08
Pentagon Bars Google Street Views as Security Threat
http://www.newsfactor.com/story.xhtml?story_id=58709
The Pentagon says the Street View feature in Google Maps can compromise military security. It has banned Google vehicles from entering any military installation after detailed images of Fort Sam Houston in San Antonio, Tex., appeared on Google Maps.

"We don't have any issues regarding Google and their products, which are very useful tools," said Gary Ross, a public-affairs officer for the U.S. Northern Command. "But the Street View provides clear imagery of control points, barriers, headquarters and security facilities that pose a risk to our force-protection efforts."

Driver Violated Policy

Google said the images were taken improperly and have been removed. "It is against Google's policy for a driver to seek access to a military base," Google spokesperson Larry Yu said. "Against our policy, we did mistakenly access the base. ... In those instances where (the military) have expressed concerns about the imagery, we have accommodated their requests."

The Los Angeles Times reported that a Sam Houston official twice granted Google access after the Google driver promised he would not videotape or photograph. The official believed an online map would be useful to guide visitors.

Yu said Google would continue to work with Department of Defense officials to ensure that sensitive imagery does not appear on Google Maps.

An Isolated Incident?

It's not clear whether the situation at Sam Houston was the only breach of policy. Comments from Gen. Gene Renuart, head of the military command responsible for homeland defense, suggested the problems were widespread. "We've got to get a sense of what is there and see how we can mitigate it," Renuart told reporters at the Pentagon.

"It actually shows where all the guards are. It shows how the barriers go up and down. It shows how to get in and out of buildings," said Renuart, commander of the U.S. Northern Command. "I think that poses...

Sat, 8 Mar 08
Google Calendar Reaches Out to Microsoft Outlook
http://www.newsfactor.com/story.xhtml?story_id=58708
Because using too many calendars can confuse rather than organize, Google has announced that its Google Calendar will play nice with Microsoft's Outlook Calendar. Earlier this week, Google announced Google Calendar Sync, a downloadable application that lets users synchronize events with Outlook Calendar. A user can determine information flow, as well as the frequency of the syncing.

The information flow can be two-way, with both calendars syncing to the other, or one way, with either calendar updating the other. Ten minutes is the minimum time for syncing. When events are sync hing, arrows appear in the Google Calendar icon.

The company said secondary calendars are not being supported, only the primary Google Calendar with the default Outlook Calendar.

'Annoying to Maintain'

On the Official Google Blog, product manager Shirin Oskooi wrote about using Calendar Sync. He said that, previously, he used Outlook on his desktop computer at home, but "since I wanted to be able to access my schedule from anywhere, I also kept a copy of it on Google Calendar." When traveling, he imported the Google Calendar data into his laptop's Outlook for offline access.

"This was not only annoying to maintain," he wrote, but also error-prone. Updates on any of his calendars required him to update all of them by hand.

Because of that chore, Oskooi said he "was probably the most excited person on the team when we started developing it." He noted that he can now enter an event into his laptop's Outlook Calendar and Google Calendar Sync updates it on his online Google Calendar as well as on his home desktop.

"All of my calendar views are always up to date," he said, "and I can choose whichever one I want to use." Google has noted that a user's calendar can be synced, whether it's accessed from a browser, a...

Sat, 8 Mar 08
Microsoft and Google May Clash Over Digg Site
http://www.newsfactor.com/story.xhtml?story_id=58707
Seemingly poised for battle over yet another technology acquisition, Google and Microsoft may be looking to buy social news site Digg. Reports say two unidentified media companies are discussing the acquisition. Digg, which has been for sale for some months, is working with Allen & Co., an investment bank, to find potential buyers.

The bidding war is said to be in full swing. Digg's price is between $400 million and $225 million, a far cry from the billions Microsoft and Google bid in past acquisition battles. Digg sought $300 million last year, but is reportedly willing to take less.

Is Digg Worth the Battle?

Microsoft may have favor with Digg. Redmond has an advertising deal with the news site and a relationship with MSNBC, one of the most popular sites on the Web. Most of Digg's revenue comes through its relationship with Microsoft, but the founder could decide it would do better with Google.

Could Google be bidding against Microsoft in a sort of pseudo sibling rivalry? It's possible, according to Greg Sterling, principal analyst at Sterling Market Intelligence. "Google could be trying to take the ad relationship from Microsoft," he said. "That would seem to be a lot of money to spend, but I haven't seen any of the ad rates or performance at Digg."

Although Google has tried to become more sociable, the search king does not have a strong social-networking presence in the traditional sense, Sterling said. Google pushes the Orkut card, but Orkut is not visible in the U.S. or Western Europe. Sterling finds Google's interest in Digg "curious."

"I suppose Digg would offer Google a way to get a social media property that's fairly visible and popular and also have more ad inventory," Sterling noted. "But Google said in its last quarterly earnings call that the response rates to ads on...

Sat, 8 Mar 08
Microsoft CEO Sees Yahoo as Key to the Future
http://www.newsfactor.com/story.xhtml?story_id=58706
Microsoft CEO Steve Ballmer told a gathering of Web developers in Las Vegas that he sees the company's proposed acquisition of Yahoo as the key to successfully competing with Google. Online advertising is currently "all about Google, Google, Google," Ballmer told former Apple evangelist Guy Kawasaki during a MIX08 on-stage interview. "We have real commitment, real aspirations and real tenacity about being a serious player, and yet we have a long way to go," he said.

"We have to have a strong position in online search if we are going to have a strong position in online advertising," and that's where Yahoo could really help Microsoft reach "critical mass," Ballmer said.

The Value of Scale

Scale -- which Ballmer called a form of synergy -- is an important advantage in the search game, he said. "The more searches you have, the more advertisers you have; the more advertisers you have, the more bidding you get on key words; and the more revenue you make, the more you have to invest," Ballmer said.

At the same time, however, the more advertisers a company has, the larger the collection of relevant ads it has to insert on pages, Ballmer said. "In the case of search, ads are part of the content and right now Google has a larger body of ads to insert on any key word that we or Yahoo have," he explained.

Though Microsoft's unsolicited bid for Yahoo could help level the online playing field, Ballmer said some streamlining will be needed if the deal goes through. "It won't make sense to have two search services, two advertising services, and two mail services, so we'll have to sort some of that through," he said.

The Untold Story

Ballmer sees Microsoft's efforts to increase its presence in the online advertising and consumer-devices...

Sat, 8 Mar 08
Sony May Let Rival Microsoft Put Blu-ray on Xbox
http://www.newsfactor.com/story.xhtml?story_id=58695
Microsoft is talking to rival Sony about the possibility of adding Blu-ray technology to the Xbox, according to The Financial Times. Sony Electronics U.S. President Stan Glasgow acknowledged talks with both Microsoft and Apple about adding Blu-ray drives to their hardware. Microsoft and Apple have been pushing the digital-distribution model, which analysts believe will eventually trump Blu-ray's recent format victory.

"You have to remember that for Microsoft, HD DVD was always a delaying action. Microsoft doesn't believe in Blu-ray and it didn't believe in HD DVD," said Mike Goodman, an analyst at Yankee Group. "Microsoft believes in digital distribution. Still, Microsoft wants to give the customers the option."

A Catch-22 Decision

Sony's discussions with Microsoft are particularly interesting because it would put the Xbox 360 on a more level playing field with Sony's Playstation 3, which has a Blu-ray drive. Yet Goodman said he wouldn't be surprised to see a $299 or $399 add-on Blu-ray player for the Xbox 360. That may force a premium edition.

"The decision is sort of a Catch-22 for Sony. Bu-ray is a competitive advantage for the Playstation 3," Goodman said. "On the flip side, not licensing the technology to Microsoft would be somewhat detrimental to Sony because Sony needs and wants to increase Blu-ray penetration as quickly as possible."

At the end of the day, Goodman suspects Sony is more intent on extracting as much value out of Blu-ray as it can in the shortest timeline. Sony is predicting it will sell 100 million-plus units of the Playstation 3, Goodman said, regardless of how the Xbox 360 performs.

How Long Will Blu-ray Last?

As the dust settles on the Blu-ray versus HD DVD battle, Sony's moves point to its realization of another battle brewing -- broadband Internet and video on demand (VOD) as the pipeline for programming and movies into the...

Sat, 8 Mar 08
Apple Opens iPhone to Enterprises, But Keeps the Keys
http://www.newsfactor.com/story.xhtml?story_id=58694
Apple's iPhone is now open to third-party developers and the enterprise. That was the message Thursday as Apple announced the beta release of its iPhone 2.0 software, support for Microsoft Exchange ActiveSync, and a new App Store.

The iPhone 2.0 software, scheduled for June, includes the much-anticipated Software Development Kit (SDK) as well as new features to make the iPhone welcome in the enterprise, notably support for Microsoft Exchange ActiveSync.

Download Available

The SDK offers applications and tools for creating programs that run natively on the device instead of only through the iPhone's browser. The beta SDK is now available as a free download, along with an accompanying iPhone Simulator that runs on a Mac. The APIs include access to the Core OS, Core Services, Media and Cocoa Touch technologies.

The tools include Xcode for source-code editing; project management and graphical debugging; Interface Builder; and Instruments to optimize real-time performance. Owners of the iPod touch will need to buy a software update to run third-party apps. A new iPhone Developer Program was also launched to support the creation of native apps.

Apple described the App Store as "a breakthrough way for developers to wirelessly deliver their applications to iPhone and iPod touch users."

At the store, users can select, buy and wirelessly download third-party applications to an iPhone or iPod touch. The price of the applications -- including free -- will be determined by the developers, but Apple will keep 30 percent. Free apps can be delivered at no charge, and enterprises can establish a secure and private page for their employees.

Exchange ActiveSync has been licensed from Microsoft and will be built into the iPhone so it connects out of the box with Exchange Servers 2003 and 2007. The support includes such security features as remote wipe, password policies, and auto-discovery. And Apple...

Sat, 8 Mar 08
U.S. City Eyes Developing-World Laptops
http://www.newsfactor.com/story.xhtml?story_id=58683
If $200 laptop computers are good for kids in Peru and Mongolia, why not Alabama?

Birmingham's City Council has approved a $3.5 million plan to provide schoolchildren with 15,000 computers produced by the nonprofit One Laptop Per Child Foundation, which aims to spread laptops to poor children in developing countries.

The foundation says the deal marks the first time a U.S. city has agreed to buy the machines, which also are headed to such countries as Rwanda, Thailand, Brazil and Mexico in addition to Peru and Mongolia.

Birmingham's school board still must agree to the deal, and some members have reservations. They want more evidence that computers designed for the African bush or the mountains of South America would be a good fit for an American city.

Reviews of the foundation's green-and-white "XO" laptops have been mixed, with praise for their simplicity, ruggedness and low price but complaints that U.S. children may be turned off by the machines' particular configuration. The user interface is built on the Linux operating system rather than the more familiar Windows.

In hopes of getting past such objections, the City Council agreed to spend $3 million buying machines from Cambridge, Mass.-based One Laptop Per Child and to give schools $500,000 to sort out technical issues. A laptop will be available for every child in grades 1 through 8.

Mayor Larry Langford, who pushed for bringing XOs to Birmingham and hopes to see them distributed by the fall, said the machines will give many inner-city children their first access to a computer.

About 80 percent of the system's 28,000 students are poor enough to qualify for free or reduced-price lunches, and the schools are dealing with declining enrollment and funding shortages. The board recently voted to close 16 of its 65 schools.

Birmingham school board member Virginia S. Volker likes the idea of laptops...

Sat, 8 Mar 08
Apple Falls Short of Rental-Movie Target
http://www.newsfactor.com/story.xhtml?story_id=58682
Apple Inc. has fallen substantially short of its target of having 1,000 movies available for rent on its Apple TV set-top box by the end of February, and is blaming studios for the discrepancy.

A complete count of the number of movies available on the box on Wednesday was elusive, but appeared to be between 400 and 500. A menu option that showed all movies at once has been removed, and some movies can be found only by searching for words in the title.

Apple Chief Executive Steve Jobs told shareholders at the annual meeting Tuesday that he's "not happy" with the shortfall, according to the San Jose Mercury News.

Jobs said it's taking movie studios more time than expected to get approval from various rights holders, the paper reported.

Apple spokesman Tom Neumayr on Wednesday said the company hopes to have 1,000 movies available "soon."

When Apple launched the device last year, it did not connect directly to the Internet, but could play movies and music from the user's computer. A software update in the middle of February gave users the ability to rent movies from Apple's iTunes Store without going through a computer.

Apple was closer to meeting another of its stated goals: 100 high-definition movies available on Apple TV. On Wednesday, 98 were offered.

iTunes had a slow start in offering music as well. It started out with 200,000 songs in 2003 and now has 6 million.

Apple TV boxes start at $229.

A competing Internet set-top box from Vudu Inc. that launched last fall has roughly 5,000 movies available. That box sells for $295.

Sat, 8 Mar 08
Intel CEO Vows To Improve Memory Biz
http://www.newsfactor.com/story.xhtml?story_id=58678
Chip-maker Intel Corp.'s CEO, Paul Otellini, vowed Wednesday to shore up the company's defenses against steep drops in memory chip prices that forced it to lower its profit forecast for the current quarter.

Price erosion for NAND flash memory has been much steeper in the first quarter than Intel expected, Otellini said.

Otellini, speaking at an investor conference at the company's Santa Clara headquarters, said the company plans to move aggressively this year into new markets to better insulate itself against plunging prices for a type of memory called NAND flash. One new market for NAND flash memory is solid-state computer drives, which store data on memory chips instead of spinning disks.

Despite the memory-market woes, Otellini says Intel's core computing business is firing on all cylinders. Otellini said Intel is making rapid progress in shipping chips based on a new chip-making process.

The company is also re-evaluating how quickly it wants to increase its investment in NAND flash, Otellini said. Intel started making NAND flash in 2006 under a joint venture with Micron Technology Inc.

"This business will not be a drag on Intel Corporation," Otellini said. "We're going to fix it, or we're going to make sure it's profitable, one way or another."

Intel's primary business is making microprocessing chips, the brains of personal computers. But its memory chips are widely used in portable electronics like digital cameras and MP3 players.

Prices for computer memory have been under intense pressure because of oversupply and fierce competition. Intel had forecast a 27 percent price drop for NAND flash in the first quarter, but prices have fallen 53 percent, leading Intel to revise its profit forecast this week.

"Pricing has moved very rapidly, much more so than we thought," Otellini said.

Intel now expects a gross profit margin of 54 percent of revenues, plus or minus a percentage point,...

Thu, 6 Mar 08
Open AIM 2.0 Offers New Access for Developers
http://www.newsfactor.com/story.xhtml?story_id=58690
AOL's venerable AIM instant-messaging service may undergo a major transformation, thanks to the launch Wednesday of Open AIM 2.0. Virginia-based AOL said the upgrade will give "the developer community the freedom to access the AIM instant-messaging network with unprecedented ease."

Open AIM was originally launched in a more limited form in 2006, resulting in more than 235,000 third-party developers signing on. Among the plug-ins that have been developed are apps to send money and automatic notifications when friends post new pictures.

AIM Money

The service is also adding AIM Money, a new advertising revenue-sharing platform. Kevin Conroy, AOL executive vice president, said these efforts will empower "the Web community to leverage the AIM messaging network."

AOL said developers will be able to integrate AIM into Web sites and applications with a free Software Development Kit and APIs for third-party chat services, including mobile, enterprise and international uses. The APIs are open source, and a new AIM Gallery is offering third-party applications.

Web-messaging providers meebo and eBuddy have already signed up. A "live interaction platform," meebo.com said it has 25 million monthly users. eBuddy uses an aggregated interface to offer free chat for 12 million global visitors who have AIM, Google Talk, MSN, MySpace or Yahoo Messenger accounts.

The 2.0 version of Open AIM also provides access to the OSCAR protocol, the proprietary method used by AIM for instant messaging and presence information. Developers will be able to build full-featured AIM services for use on platforms that could also host other chat services. OSCAR was previously a closed protocol, although some developers reverse-engineered it.

'One More Attempt' to Monetize

The SDK and APIs can also be used to create a single messaging application that can support multiple chat services or custom software for enterprise or mobile use, but the apps must remain free and open.

For applications reaching...

Thu, 6 Mar 08
EC Will Approve Google's Purchase of DoubleClick
http://www.newsfactor.com/story.xhtml?story_id=58689
The European Union is about to deliver Google some good news. According to reports, the European Commission is set to approve the search giant's $3.1 billion acquisition of DoubleClick.

The news is not unexpected because the EC has yet to file formal objections to the merger. The EC has never rejected a deal without filing formal objections. In the U.S., the Federal Trade Commission approved the deal in December, despite virulent objections from privacy groups.

Final approval won't come until April 2 -- a full year since the deal was announced and a sign that Google, like Microsoft, faces extreme scrutiny when acquiring companies. With less than a month to go, it was clear that the EC won't place roadblocks in Google's way.

The Price of Success

"It's the price that Google must pay for its success," Rick Aristotle Munarriz wrote on the investing site Motley Fool. "Will this make it harder for Google to snap up other decent-sized Internet advertising specialists? Of course. If striking a deal with Google means delayed closings and the potential of regulatory derailment, Big G will have to bid a premium for future acquisitions if its rivals are holding up bidding cards."

The acquisition is important for Google, Munarriz wrote, because while Google's strength is in text ads, companies like DoubleClick deliver the "eye candy that is typically preferable in tough-to-monetize sites like social networking and gossip rags."

"This is still an ongoing investigation, but we do not believe the transaction raises any competition concerns," said a Google spokesperson. "We hope the EC will come to the same conclusions as the FTC and clear the deal without any conditions."

More Pressure on Microsoft

With Google's already dominant lead in Internet advertising, opponents to the deal like Microsoft have argued that with DoubleClick Google will essentially represent an advertising monopoly.

The final...

Thu, 6 Mar 08
Apple Tops Expectations as iPhone SDK Released
http://www.newsfactor.com/story.xhtml?story_id=58688
Developers were sitting on pins and needles in the days leading up to Thursday's iPhone Software Roadmap event. Rumors had it that Apple was going to exert strict control over what applications it would distribute through its iTunes Store, that application downloads would be via Macs and PCs instead of over the air, and that security controls would trump features.

The rumors turned out to be off base as Apple released the iPhone Software Development Kit. CEO Steve Jobs and his team wowed the press and developers with an aggressive plan to turn the iPhone -- and iPod Touch -- into a true computing platform. And on the enterprise side, Apple unveiled support for Microsoft Exchange, calendaring and contacts, plus support for virtual private networks and a remote wipe security feature.

With the dual SDK and enterprise announcements, "I believe we will see a rapid rise in the number of applications for the iPhone and iPod Touch platforms, which may solidify Apple's position as the smartphone leader," said Greg Sterling, principal analyst with Sterling Market Research. "It will put pressure on BlackBerry to 'open up' in the same way that Facebook's platform put similar pressure on its competitors on the desktop."

Speaking before the event, Sterling emphasized that in navigating between security and accessibility, Apple should steer "close to the edge" of openness. After the event, Sterling said, "They went pretty close."

iPhone in the Enterprise

Observers had differing opinions on the enterprise announcements.

"The BlackBerry-killer Exchange features are remarkable," said Damine Stolarz, a Mac and iPhone developer, in an e-mail. "This is part of the gradual iPhone-dominate-the-phone world strategy." Apple's inclusion of Bonjour, its zero-configuration networking solution, "is a good thing, but we have to see what it means," Stolarz said.

Andrew Storms, director of security operations at nCircle Network Security, took a more dubious...

Thu, 6 Mar 08
Swiss Bank Drops Controversial Wikileaks Suit
http://www.newsfactor.com/story.xhtml?story_id=58687
Amid ongoing controversy, Swiss bank Julius Baer has dropped its lawsuit against whistle-blower Web site Wikileaks.org. In a filing Wednesday in U.S. District Court in San Francisco, Julius Baer dismissed the lawsuit against Wikileaks and the site's registrar, Dynadot. The bank offered no explanation and officials were not immediately available for further comment.

Constitutional Furor

The drama began shortly after the bank filed a complaint against Wikileaks and Dynadot for posting leaked documents. After an initial review, Judge Jeffrey White ordered Dynadot, a California Web-hosting company, to "immediately clear and remove" records from Wikileaks and "prevent the domain name from resolving to the Wikileaks.org Web site or any other Web site or server other than a blank page" until he could undertake a closer review.

The judge and the bank quickly became the focus of international controversy as free-speech and civil-rights groups charged the decision was unconstitutional.

Wikileaks allows anonymous posting of documents, including those disclosing U.S. Army operations at Guantánamo Bay, Cuba; human-rights abuses in China; and political corruption in Kenya. But a new look at First Amendment law began when documents from the Swiss bank showed up.

Bank Warned

In the face of widespread media attention and rights-groups action, White last week reversed his decision. Dynadot had already blocked the Wikileaks.org domain name, but the site remained alive on other servers and could even be reached using its numerical address.

The bank dropped the suit after a warning that Wikileaks, Dynadot and the intervening defendants, including Public Citizen and the California First Amendment Project, could seek attorney fees under a California law designed to protect those who speak out against meritless lawsuits, according to Public Citizen attorney Paul Alan Levy.

"Although the bank's notice of dismissal warns of the possibility that the bank may bring the same lawsuit in some different court, we are confident that...

Thu, 6 Mar 08
IE8 Aims to Let Web Designers Focus on Rich Content
http://www.newsfactor.com/story.xhtml?story_id=58686
Microsoft previewed its next-generation Web browser this week during the MIX08 conference in Las Vegas. The investments Microsoft is making in Internet Explorer 8 "will enable developers and designers to deliver a range of seamless, connected experiences across the continuum of Web applications, rich clients, mobile and other devices," said Chief Software Architect Ray Ozzie.

What IE8 will give Web-page designers is the built-in tools they need to reduce the challenges and complexity of delivering Internet content, said Dean Hachamovitch, the IE team general manager.

"What developers want to do is deliver amazing experiences, but what developers end up doing is spending too much of their scarce time getting things to work," Hachamovitch said. "The Web gets better when developers can spend more time innovating, and it is with that outcome in mind that we started work on IE8."

Embracing Standards

Microsoft's newly launched IE8 beta download is squarely aimed at developers, who are expected to provide the software giant with crucial feedback. "The key here is that we are only partway done now and there's a lot more to come." Hachamovitch said.

One IE8 goal is to enable developers to quickly build Web sites for multiple browsers, Hachamovitch said. "Today, differences between browsers simply waste too much developer time," he noted.

Microsoft is also moving to embrace standards to further the goal of achieving Internet interoperability, Hachamovitch noted. "Long-term we believe this is the right thing for the Web," he said.

IE8 features improved support for standards such as XML and cascading style sheet (CSS) designs for the Web. Moreover, the browser incorporates tools for quickly debugging HTML, CSS and JavaScript in a visual development environment, Hachamovitch said.

Online Crowd Pleasers

Hachamovitch also unveiled two IE8 innovations, called Activities and Webslices, that promise to enhance the Web-surfing experiences of browser users.

"Activities are about...

Thu, 6 Mar 08
Father of Java Promises 'Mind-Blowing' Blu-ray Experiences
http://www.newsfactor.com/story.xhtml?story_id=58672
When the father of Java speaks, developers listen. James Gosling, widely known as the father of the scripting language, spoke about Java and Blu-ray innovation at the Sun Tech Day in Sydney, Australia. Gosling, a vice president and fellow at Sun Microsystems, gave the keynote address and talked to reporters.

Sun's Java language is part of the Blu-ray specification. Gosling told reporters that the next-generation Blu-ray Profile 2 will be "mind-blowing." Demonstrations of Profile 2 are scheduled for demonstration at the JavaOne conference in May, and players with the new specification are expected this spring. Profile 2 offers Internet connectivity and storage for downloaded content.

"Now the real battle begins between Sony and Panasonic and Pioneer and Sharp and all the playermakers to make their players richer," said Richard Doherty, an analyst at Envisioneering Group. "How many consumers would like to be able to chat with family members in different cities over the Internet while they watch Ratatouille the week it comes out?"

The Promise of Blu-ray Profile 2

Sony took a step in that direction when it updated its Blu-ray Disc player line with two new models that will offer advanced interactive features, including trailers and games from the Internet. The new players will debut this summer.

The BDP-S350 and BDP-S550 models both support BonusView -- Picture-in-Picture -- featured on some of the new Blu-ray Disc theatrical releases. The BDP-S350 is BD-Live ready and features an Ethernet port for an easy firmware update and access to Internet-based interactive content. The BDP-S550 will be BonusView and BD-Live capable when it ships.

Doherty pointed to the possibilities with Java applications from the movie studios, from third parties, and Java environments supported by Blu-ray player manufacturers like Sony. The discs, he said, will be much richer and interactive. Beyond the socialization, we might see scenarios where folks...

Thu, 6 Mar 08
Spyware Costs Businesses More Than $8,000 a Year
http://www.newsfactor.com/story.xhtml?story_id=58671
Spyware on corporate computers causes serious network downtime at more than one-quarter of small and midsize businesses (SMBs), with each incident costing an average of 2.5 days to resolve. A computer-technology association counsels CIOs to look at spyware as a serious business issue rather than a technology issue, and make safe-computing education a C-level initiative.

The Computing Technology Industry Association (CompTIA), which offers IT training and certifications, researched the impact that spyware has on SMBs, which it defines as firms with 10-200 PC users.

More than 25 percent of end users reported their productivity was affected by a spyware infection (everything from pop-up windows to major data-breach threats) in the last six months, and more than a third of those users had been infected multiple times. Some of them were infected 10 times or more in that period.

20 Lost Hours Per Incident

"What was surprising and troubling is how much trouble a single incident of spyware can cause a company," said Stephen Ostrowski, director of communications for CompTIA. "We found it takes 2.5 days, or 20 hours, from the time of the spyware infection to the time the computer is scrubbed and clean and running efficiently again." The report estimates the cost of spyware infections for SMBs at more than $8,000 a year, not counting lost revenue.

Perhaps even more troubling was that the IT professionals said they received reports of only 4.5 incidents of spyware problems per 100 users -- far less than the end users reported to researchers. "Sometimes there's a lag in reporting spyware problems," Ostrowski said. "People don't report problems because they're not aware of one, or they're afraid they're going to get in trouble."

The report noted that users wait an average of 18 work hours before seeking help (13 percent waited a week or more), after which it can...

Thu, 6 Mar 08
Adobe Cites Flash Success Despite Jobs' iPhone Stand
http://www.newsfactor.com/story.xhtml?story_id=58670
With all its multimedia capabilities, observers have expected Apple's iPhone to have Flash capability. But Apple CEO Steve Jobs says the current Flash player is not ready for the iPhone.

Jobs said Tuesday at Apple's shareholder meeting that the iPhone needs something better than the player currently available from Adobe Systems. He said Flash Lite for mobile devices is not powerful enough, and regular Flash, designed for full-feature computers, runs too slowly on the iPhone. "There's this missing product in the middle," he told the Dow Jones news service.

'Insider' Blogs Wrong

In response, Adobe told news media that Flash and Flash Lite are a "huge success" and noted that there are more than 450 million Flash-enabled mobile devices worldwide, with a billion expected by 2010. No specific mention was made of the iPhone.

Flash is the dominant browser plug-in for animation on the Internet and a leader in video. Some developers were expecting it to be included in Thursday's highly anticipated iPhone Software Roadmap event at Apple's headquarters in Cupertino, Calif., when details of the iPhone Software Development Kit were expected.

The SDK will allow thirty-party developers to create native applications for the iPhone. Some observers have speculated that if Apple doesn't release Flash for the iPhone, then third-party developers might come up with a way to run Flash on the device.

There have also been a variety of "insider" blog reports that Flash was coming for the iPhone. Last month, for instance, gearlive.com promised it had word "from a reliable source that Flash support is on its way," and that it would be coming "very, very soon."

Diminishes 'A Bit'

Bobby Tulsiani, an analyst with JupiterResearch, said not having Flash on the iPhone could "diminish it a bit," but people don't buy the device just for its ability to surf the Web. After all, he...

Thu, 6 Mar 08
Oracle Offers Encryption with Secure Backup
http://www.newsfactor.com/story.xhtml?story_id=58669
Oracle announced the availability of its high-performance tape backup solution, Oracle Secure Backup 10.2. Designed for Oracle databases as well as network-attached storage (NAS) devices, Secure Backup offers encryption, vaulting and dynamic drive sharing.

The release is aimed at providing a high level of data protection at a low cost. This release enables users to roll out policy-based encryption at the domain, host, backup or tape levels. Key management functions are automated to make the process easier on administrators, with keys stored on the Oracle Secure Backup Administrative Server. Those keys are transparently decrypted when files are restored.

Henry Baltazar, a storage analyst with The 451 Group, told us that encryption capability is a must-have feature for Oracle, but it's not new in the industry. "Other vendors have had encryption for a long time now, and there are also third parties that make their business out of just doing encryption," he said. "It's definitely a necessary feature given the market dynamics, but they're not inventing the wheel here. It's something they had to have."

Aggressive Pricing

Baltazar said that Oracle's pricing strategy is extremely aggressive. "The biggest advantages this has, besides being Oracle, is its pricing," he said. Licenses for Secure Backup cost a flat $3,000 per physical tape drive, and Oracle Secure Backup Express is offered free to protect a single database server attached to a single tape drive.

Pricing by Oracle's competitors tends to be higher since companies are charged based on different criteria, such as the number of different applications being backed up, Baltazar said. "That's the way that market works, and that's where the margins go," he said, so Oracle's flat-rate pricing should be very competitive.

Better Performance

High utilization of CPU overhead during backups has been a concern, and Oracle intends this new release to address those concerns. According to Juan Loaiza,...

Thu, 6 Mar 08
Facebook Hires Top Google Exec As COO
http://www.newsfactor.com/story.xhtml?story_id=58660
Facebook Inc. has raided Google Inc. to hire a new chief operating officer, providing the popular online social network with more seasoned management and advertising savvy as it strives to make more money without alienating its audience.

Sheryl Sandberg's defection from Google, announced Tuesday, represents a coup for Facebook just three months after it suffered a humiliating setback in its effort to inject more commercialism into its fun-loving Web site.

As Google's vice president of global online sales and operations for the past six years, Sandberg helped build the Internet search leader into one of the world's most prized companies. She also helped set up Google.org, the Mountain View-based company's philanthropic arm.

Before joining Google, she served as the U.S. Treasury Department's chief of staff during the Clinton administration.

With Sandberg's hiring, effective March 24, Facebook fills a void created last summer when it reassigned its previous chief operating officer, Owen Van Natta, to chief revenue officer. Van Natta left Facebook last month.

Besides helping steer Facebook's expansion, Sandberg, 38, could serve as a mentor for the Palo Alto-based company's 23-year-old founder and chief executive, Mark Zuckerberg, to whom she will report directly.

Sandberg said in an interview that she is just one of several veteran executives who can act as a sounding board for Zuckerberg. She also pointed to Gideon Yu, who became Facebook's chief financial officer in July after stints with Yahoo Inc., Google's YouTube and a venture capital firm.

"Mark is inspiring," Sandberg said. "He has more clarity and vision than just about anyone I ever met."

In an interview, Zuckerberg said he is counting on Sandberg to minimize Facebook's growth pains.

"Anyone who has ever worked with her raves about how she helped make them better managers," he said. "She has a terrific track record."

Sandberg's departure from Google comes amid widening fears on Wall Street...

Thu, 6 Mar 08
Microsoft Researchers Show Off Latest
http://www.newsfactor.com/story.xhtml?story_id=58659
Microsoft researchers from around the world gathered at the software maker's headquarters Tuesday to show off projects dealing with subjects as tiny as individual cells and as large as the universe.

The WorldWide Telescope, an application that lets computer users zoom from one galaxy to the next, was an atypically tangible demonstration at the annual science-fair-like gathering that usually shows off early-stage prototypes.

Researcher Curtis Wong, who had walked journalists through a bare-bones version of the program a year ago, showed how users can explore on their own or take a guided tour designed by an astronomer. The program, which knits together images from the Hubble Space Telescope and the Sloan Digital Sky Survey, among others, will be freely available sometime in the spring.

Other groups demonstrated projects that use data collected from sensors for more terrestrial purposes. U.K.-based researchers showed how a system of sensors, radio frequency identification tags and GPS data were combined to track the feeding habits of a local bird population, as a way to understand how changes in climate and other variables affected the species.

Another team displayed lightweight sensors that can fit in the palm of the hand and can last four years on two AA batteries. They pass along information "like a bucket brigade," Redmond-based researcher Feng Zhao said, using protocols developed for the Internet that his group modified to use less energy and memory. Zhao said one practical application would be more efficient heating and cooling of warehouse-size data centers, depending on which small areas the sensors reported were too hot or too cold.

There were also tools designed especially for scientists, from an application that helps them "program" without having to write code to an entirely new programming language to model cellular processes.

A handful of rough prototypes were built to ease common frustrations of today's Web-savvy...

Thu, 6 Mar 08
ID Vault Protects Your Online Data
http://www.newsfactor.com/story.xhtml?story_id=58658
You're about to enter your user name and password to access your bank account information. You feel confident that the Web site you're looking at belongs to your bank because you bookmarked it before or you typed in the address yourself.

But with today's sophisticated malware that can redirect your browser without you knowing it, for all you know that Web site could be a phishing site that's waiting to steal your password.

It used to be that malware such as computer viruses and the like were there just to bog your system down or even worse, erase all your data. But today's malware doesn't want you to know that it's there. Because it's no longer the geeky teenager playing a prank. It's organized crime that's trying to steal your money, and now they can do it without having to wave a gun in your face.

Thankfully there are things available that can protect you.

ID Vault (www.guardid.com) is one such product that uses some very clever and sophisticated technology that keeps all your sensitive information off your hard drive. It looks like a little padlock and works much like one of those flash memory sticks that you plug into any USB port. You just press on the hasp and the USB plug pops out.

After you plug it in, the ID Vault uses its own memory to store your name and password information, and it's encrypted. When you're done, simply remove it. Now if the bad guys go looking for your stuff on your hard drive, it just isn't there.

The ID Vault can also be used with non-financial sites as well. In fact, it works with any site that requires a name and password.

The newest 2008 version of the ID Vault can now store user...

Thu, 6 Mar 08
Are iPods Linked to Crime Increase?
http://www.newsfactor.com/story.xhtml?story_id=58656
It's easy to see why iPods would be alluring targets for criminals: The music players are valuable and easy to resell, and people absorbed in their personal soundtracks can be vulnerably oblivious to their surroundings.

But could the temptation for stealing iPods be so strong that they're behind an increase in the crime rate? Researchers at a public policy institute say yes.

They argue that the tantalizing gadgets are perhaps the main reason U.S. violent crime rose in 2005 and 2006 after declining every year since 1991 -- although a close look at the findings suggests the hypothesis has holes.

The Urban Institute, a Washington think tank, first raised the subject of an "iCrime wave" last September, and held a panel discussion Tuesday to explore it further. The researchers don't blame iPod maker Apple Inc. or any other device maker for crime, but they do say consumers should demand technologies that would render stolen gadgets useless.

Apple -- which has explored anti-theft locks in patent filings -- had no comment.

A key point in the Urban Institute's argument is that robberies -- the taking of something by force or the threat of it -- had seen dramatic reductions since the 1990s, but jumped in 2005 and 2006. FBI statistics show the robbery rate went from 137 per 100,000 people in 2004 to 141 per 100,000 in 2005 and 149 in 2006. That helped boost the overall rate of violent crime in those years.

During those years, iPods were going mainstream. In late 2004, Apple had sold about 5 million iPods. By the end of 2005 that had ballooned to 42 million, and in 2006 the number neared 90 million.

One widely accepted theory holds that crime happens when three things come together: A motivated offender encounters a suitable victim and perceives a high chance of getting away...

Tue, 4 Mar 08
Malware Attacks Target Mobile Devices
http://www.newsfactor.com/story.xhtml?story_id=58646
Malicious-code attacks are being aimed at mobile devices, security researchers say. The malware, which comes hidden inside legitimate applications, can compromise information on the device and even target the user for extortion.

One recent attack was a Trojan called WinCE/InfoJack that was aimed at Windows Mobile PocketPCs. Dave Marcus, security research and communications manager of McAfee Avert Labs, told us that WinCE/InfoJack was bundled with legitimate installation files such as Google Maps, games and stock-trading applications, and then distributed across a variety of Web sites. "That's a technique we've seen utilized in the PC malware for quite some time," Marcus said, but is still new in attacks on mobile platforms.

The Trojan sends out information about the device (such as its serial number and operating system) to the owner of a now-offline Web site in China. It's a particularly dangerous attack because it shuts off other forms of security. Devices require authorization to allow programs to be installed, Marcus said. "This malware shut down that functionality, which could then allow the malware to update itself or allow other people to put malware on the phone."

Modular Malware

Another malware attack noted by McAfee researchers is aimed at Symbian Series 60 phones, available from manufacturers including Nokia, Panasonic, and Samsung. Also based in China, the SymbOS/Kiazha attack was designed to extort money from an infected user by disabling the phone until a payment of roughly $7 is made via QQ, a popular instant-messaging network in China that features "coins" that function as an in-network currency.

The SymbOS/Kiazha malware is included in a "toolkit" of malicious software known as MultDropper. Modular suites of attack tools are common for malicious code aimed against PCs, and Marcus said that it's the trend in mobile attacks now as well. "It doesn't surprise us as security researchers that the success...

Tue, 4 Mar 08
Nokia Smartphones Will Use Microsoft's Silverlight
http://www.newsfactor.com/story.xhtml?story_id=58641
Nokia plans to include Microsoft's Silverlight on its S60 software platform for smartphones running the Symbian OS, beginning later this year. Microsoft's cross-platform multimedia plug-in will eventually also be on Nokia's Series 40 devices and Internet Web tablets as well as devices running the Windows Mobile and Linux operating systems.

The deal with Microsoft will provide smartphone developers with more opportunities to create media-rich, interactive applications that run on multiple mobile platforms in a consistent and reliable way, Nokia executives said.

"By working with Microsoft, we are creating terrific opportunities and additional choices for the development community, S60 licensees and the industry as a whole," said Nokia Senior Vice President Lee Williams. "Nokia aims to support market-leading and content-rich Internet application environments and to embrace and encourage open innovation."

Reaching a Huge Market

According to the Symbian consortium, in which Nokia holds a commanding 47.9 percent share, more than 77.3 million Symbian-based smartphones were shipped worldwide last year -- a 50 percent rise from 2006. The consortium noted that 188 million Symbian-enabled smartphones have shipped since its formation in 1998.

Research firm Canalys pegs Symbian's share of the global smartphone market at 53 percent. So working with Nokia will give Microsoft an opportunity to reach a huge number of mobile users, including the customers of all S60 licensees, said Microsoft Senior Vice President S. Somasegar.

"This is a significant step in gaining broad acceptance for Silverlight and ensuring it is platform-agnostic," Somasegar said. "This is critical since we want to make sure developers and designers don't have to constantly re-create the wheel and build different versions of applications and services for multiple operating systems, browsers and platforms."

Bridging Technical Barriers

According to Ray Ozzie, Microsoft's chief software architect, the AJAX (Asynchronous JavaScript and XML) techniques that developers have long used to create...

Tue, 4 Mar 08
Apple Expected to Tightly Control iPhone Applications
http://www.newsfactor.com/story.xhtml?story_id=58640
Apple's plans to give third-party developers access to its iPhone will be unveiled Thursday at its Cupertino, Calif., headquarters. But what it plans do at its iPhone Software Roadmap event has developers anxious.

It's not clear if Apple will release a promised software development kit, but failing to do so would be a major disappointment for developers. Apple is already late on its promise to have an iPhone SDK in developers' hands in February.

The iLounge Web site has reported that Apple will only release a beta version of the SDK, with the full kit not available until June in conjunction with the Worldwide Developers Conference in San Francisco.

Jail-Breaking to Continue?

In any case, developers may be a little underwhelmed by the terms Apple is setting. iLounge reported, based on sources who "independently confirmed" the details, that Apple will distribute third-party applications through the iTunes Store, that it will decide what applications are approved, and that developers will not be able to interface with hard accessories.

Ross Rubin, an analyst with NPD Group, wrote on his blog that having Apple as the sole distributor of third-party apps is "overall positive, if true." After all, he said, "The inability to track down mobile applications has been one of the major hindrances in smartphone application development." Rubin also suggested Apple make the apps available over its iTunes Wi-Fi Music Store.

Until that happens, "I'm pretty certain jail-breaking will be popular for the foreseeable future," said Damien Stolarz, coauthor of an upcoming book on iPhone hacks, in an e-mail. "The SDK is better than nothing, but a lack of over-the-air purchase and install will leave installer.app in business until Apple lets you buy on the phone."

Apple as Gatekeeper

iLounge editor Jermey Horwitz noted that the plan to have Apple serve as application gatekeeper is easily "the most controversial...

Tue, 4 Mar 08
IE8 Will Support Current Web Standards by Default
http://www.newsfactor.com/story.xhtml?story_id=58639
Microsoft said Monday that it will make the current Web standard for rendering browser content the default in Internet Explorer 8. As the Web has evolved, there have been different levels of support for Web standards and new forms of Web-site behavior. Unless a Web site provides specific instructions, a browser uses a default mode.

Three Modes

IE8 will have three rendering modes. One supports the current implementation of Web standards, the second supports the implementation that existed as of IE7's release in 2006, and the third supports rendering modes back to the first days of the Web. Microsoft said the current implementation is more forward-looking and preferred by Web designers, while the others maintain compatibility with Web sites designed for previous versions of Internet Explorer.

Microsoft chief software architect Ray Ozzie said the original plan was to make the IE7 standard the default for IE8, but the company finally decided to opt for current Web standards.

"This is obviously a complex issue," he said. On one side, he added, there are "literally billions of Web pages designed to render on previous browser versions." On the other hand, Ozzie said, it's beneficial to Web designers "if all vendors give priority to interoperability around commonly accepted standards as they evolve."

He added that Microsoft will work with content publishers to encourage them to update their Web sites during the IE8 beta period.

Ignoring Standards Can be Expensive

Last month, the software giant issued a set of Interoperability Principles for data portability, support for industry standards, and other areas to open up its products. Ozzie said the IE8 decision is part of Microsoft's commitment to those principles.

But there's another factor. Brad Smith, Microsoft's general counsel, noted that, while there aren't any legal requirements about which rendering mode must be the default, the company feels its decision...

Tue, 4 Mar 08
Cisco Offers Scalable Multifunction Routers
http://www.newsfactor.com/story.xhtml?story_id=58628
Cisco's latest routers focus on data, voice and video. Developed over five years at a cost of $250 million, the Cisco ASR 1000 Series Aggregation Services Routers were introduced Monday.

The new product line features software virtualization to enable "instant-on" provisioning and simultaneous use of multiple services, including a firewall, virtual private networks, deep-packet inspections and Session Border Control. The goal was to eliminate the need for multiple single-function appliances in addition to a router.

Part of what makes the grouping possible is the new Cisco Quantum Flow Processor, an integrated and programmable engine. The processor scales services and allows the platform to be retasked to new requirements as they emerge and as networking evolves, Cisco says.

Analyst: ASR 1000 is 'Beefy'

Pankaj Patel, senior vice president and general manager of the Cisco Service Provider Group, said the ASR 1000 Series is unsurpassed in flexibility because it incorporates new technologies to support innovation without having to rethink network decisions.

"Any comparable configuration would not only cost much more, but require more rack space, consume more power and require additional blades or network appliances in order to equal the capabilities that are already integrated into this compact, multipurpose router," Patel said.

Besides endorsements from Lufthansa Systems, Nippon Telegraph and Telephone Communication and Wachovia, Zeus Kerravala, a vice president at Yankee Group, called the ASR 1000 a "beefy router." Not only is the performance impressive, he said, there's nothing on the market that competes.

"If you look at the products Cisco has released over the last few years with Nexus, ISR, ASA, you'll see that the company is definitely working on the concept of multifunction appliances," Kerravala said. "To me, ASR follows in exactly the same footsteps. There are a number of functions that have to be done at the aggregation edge, whether it's enterprise or telco, and Cisco...

Tue, 4 Mar 08
Microsoft Offers Free Web-Based Office Extension
http://www.newsfactor.com/story.xhtml?story_id=58627
Microsoft took another step Monday toward its goal of being a "Software plus Services" company, as it opened its beta version of a Web-extended Office suite. First previewed in the fall, Office Live Workspace beta is being made available free as a Web-based extension of the dominant Office productivity suite. It had previously been available as a private beta, and the final release is expected later this year. The software giant said this version will allow people to "access their documents online and share their work with others."

Stephen Elop, president of the Microsoft Business Division, said the "rich client experience" of Office combined with the online service provides "a seamless computing experience for our 500 million Office users worldwide."

Real-Time Sharing

Up to a thousand Office documents can be stored online and shared in Office Live Workspace. Documents can be viewed and commented on in the browser, simple Web lists and Web notes can be created, and, when integrated with Microsoft SharedView, documents can be shared in real time.

The service also offers new features, including an activity panel, direct links, and multifile uploads, which the company said came from feedback in early testing.

The activity panel has an at-a-glance view of all activity in a work space, e-mail notifications about changes, a work-space item can be bookmarked, and multiple files can be uploaded simultaneously by dragging and dropping.

Michael Silver, an analyst with industry research firm Gartner, pointed out that Office Live Workspace does not provide the full Office capabilities online, but is an "add-on for collaboration and small business management" to provide storage, version control and other online features. It is not, he said, what Google Docs is.

Google Docs Not a Major Threat

Google Docs is a free, hosted suite for documents, spreadsheets and presentations. Google, which has become Microsoft's biggest competitor in...

Tue, 4 Mar 08
Yahoo's onePlace Aims to Manage Mobile Content
http://www.newsfactor.com/story.xhtml?story_id=58626
Microsoft and Yahoo are competing again, but this time it's not about a takeover but the mobile Web. While Microsoft has partnered with Nokia to put its Silverlight platform on mobile phones, Yahoo on Tuesday unveiled onePlace, a mobile-content management tool.

Marco Boerries, executive vice president of Yahoo's Connected Life, said onePlace is an essential component of Yahoo's mobile products. "Yahoo onePlace is where users will be able to find what matters to them the most, no matter where their interests, passions and information come from," he said. "Yahoo onePlace will provide mobile users with a rich and dynamic content experience."

Hypercustomized Content

Yahoo aims to personalize the mobile Web. Its onePlace tool organizes content, keeps it current, and serves it according to consumer preferences. Yahoo is calling it "hypercustomized" to consumer tastes.

Yahoo thinks onePlace will be easy to adopt because it uses bookmarks to link to Internet content, including news feeds, Web sites, videos, images, e-mails and search queries. The tool's task is to keep that content updated -- be it the latest game scores or stock prices -- and assign categories and tags. Users can place the content into customized collections.

Yahoo offers the example of a user planning a holiday to Paris in June. The user could create a "Paris" collection and begin linking it to any useful information -- weather conditions, city guides, restaurant reviews, hotel reservations, walking maps, songs of Edith Piaf, English-French dictionaries, winery recommendations, etc. If the flight times change, onePlace automatically updates that information.

Yahoo expects to release onePlace in the second quarter.

Eliminating Mobile Pain Points

Greg Sterling, principal analyst at Sterling Market Intelligence, likened onePlace to MyYahoo adapted for a mobile setting. The concept is also similar to RSS feeds. While "favorites" have largely disappeared from users' desktops because people just search for what they need,...

Tue, 4 Mar 08
At CeBIT Tech Show, a Green Undercurrent
http://www.newsfactor.com/story.xhtml?story_id=58611
Amid the sharp displays and booths offering up the latest gadgets and gizmos at the annual CeBIT trade and technology fair, the key undercurrent is the greening of the industry.

The agenda for the international industry gathering March 4-9 has given a nod to concerns about climate debate worldwide. Many of the 5,845 exhibitors from 77 countries are touting developments such as servers that use less electricity, and data centers that don't emit any carbon dioxide.

Bernd Bischoff, chief executive of the German-Japanese Fujitsu Siemens, said his company is repositioning itself as the "first IT manufacturing who is going to switch completely to energy-efficient products at affordable prices." He said the company aims to find "the balance" between the needs of its customers, primarily data-hungry businesses, without putting the environment at risk.

While a technology trade fair is more likely to draw references to the latest cell phones, slim laptops or giant flat-screen televisions, focusing on green concerns at the event helps to set the tone for the industry worldwide, said Achim Berg, the general manager of Microsoft Germany.

"This is by far the biggest trade fair in the world," he said.

Sebastian Krause, vice president of IBM's Software Group in Germany said because of CeBIT's reach, the ideas presented there are absorbed and taken back to countries elsewhere.

"This is the place where the agenda of the IT sector is defined," he said.

In order to bring the spotlight more on the concept of Green IT, the fair is working with the Climate Savers Computing Initiative, a group founded in 2007 with the participation of Microsoft Corp., Google Inc., Intel Corp., IBM Corp. and others.

Its objectives are to reduce the emissions of greenhouse gases caused by the use of computers by 54 million tons annually. Cisco Systems Inc. manager Jan Roschek estimates that the IT sector...

Tue, 4 Mar 08
What's Hot About Yahoo? Information
http://www.newsfactor.com/story.xhtml?story_id=58609
Microsoft and News Corp. have offered many reasons behind their desires to team up with Yahoo -- its brand name, its popularity, content pages, search engine and e-mail service.

But Yahoo has another asset that makes them salivate: a massive trove of data about where people surf on the Web and what they do there.

Every month, about 136 million people visit Yahoo sites, and Yahoo collects at least 110 billion pieces of data about them, from the topics they search to the videos they watch, according to an analysis that comScore conducted for The New York Times. The information is used to deliver relevant advertisements to people based on their interests, and Yahoo collects more of it than any other company, comScore says.

Microsoft's chief advertising strategist, Michael Galgon, said during an interview that data was indeed a factor behind the bid for Yahoo. Advertisers only need to know a limited number of details about consumers to serve them relevant ads, he said, but Web publishers like Microsoft see no limit to the amount of data that could prove lucrative.

The more that Web companies know about each visitor, he said, the more they can attract advertisers and charge higher rates.

"What is targeting in the long term?" Galgon said. "It looks like increasing incidents of moments where advertising equals information. You're getting content about things and messaging about things that are spot on to who you are."

For Microsoft, buying Yahoo would increase the number of times it could collect data on a typical consumer by 674 percent, to 2,747 times a month from 355, comScore found. Given Microsoft's ambitions to compete with Google in online advertising, that increase goes far in justifying its $44 billion bid.

Meanwhile, News Corp. is in talks with Yahoo to merge some of its Web assets, like MySpace,...

Tue, 4 Mar 08
Mattel and Hasbro Say Scrabulous Is Piracy
http://www.newsfactor.com/story.xhtml?story_id=58608
The latest bane of office productivity is Scrabulous, an online knockoff of the Scrabble board game, with more than 700,000 players a day and nearly three million registered users.

Fans of the game are obsessive. They play against friends, co-workers, family members and strangers, and many have several games going at once.

Everyone seems to love the online game -- everyone, that is, except the companies that own the rights to Scrabble: Hasbro, which sells it in North America, and Mattel, which sells it everywhere else.

In January, they denounced Scrabulous as piracy and threatened legal action against its creators, two brothers in Calcutta, Rajat and Jayant Agarwalla. The companies said they were hoping for an amicable solution that would not force them to shut down the game.

Jayant Agarwalla, 21, said they did not create Scrabulous to make money, even though they now collect about $25,000 a month from online advertising. They just wanted to play Scrabble on their computers, and their favorite site had started charging, he said.

"Our family has been playing the game for 50 years now," said Jayant, who received a set when the game first came out in India. His mother encouraged him and his 26-year-old brother, Rajat, to play as a learning tool, often with a dictionary by the board.

Scrabulous, which most players use on the Facebook social networking site, has a board that looks just like Scrabble and the same number of letter tiles with the same point values. Players can send invitations to others on Facebook or search for strangers to play with by posting messages.

There is no time limit for moves or games. Scrabulous keeps track of player statistics, and its most popular version does not allow fake words.

It cannot, however, prevent players from cheating. One method is an online "helper" program, which generates a...

Mon, 3 Mar 08
Your Data Can be Stolen on Airport Wireless Networks
http://www.newsfactor.com/story.xhtml?story_id=58617
The next time you're in an airport terminal with your wireless notebook on, there's a good chance you're exposing your or your company's data to others. Even worse, the wireless network you're connected to might be completely insecure -- or even be running on the laptop of the guy sitting next to you.

Researchers from AirTight Networks visited 14 airports around the world and discovered that most business travelers aren't taking the basic steps necessary to protect sensitive data. "We found that only three percent of all mobile users were using virtual private networks (VPNs), so most of their data was free and clear to anyone who could sniff the airwaves," said Mike Baglietto, director of product marketing for AirTight Networks.

With little effort the researchers were able to see what Web surfers were looking at, and even capture their cookies (small text files that allow Web sites to identify and track users). "There's a huge data-leakage exposure," Baglietto said. "We're able to track people's cookies in the air, and once you start getting a user's cookies, you could impersonate that user" to steal their banking credentials, for example.

Insecure Access Points

Web surfers weren't the only ones operating insecurely, Baglietto told us. Most of the wireless networks the AirTight researchers checked out were insecure.

The team noted 478 access points, of which 57 percent were completely unprotected, and another 28 percent were protected by WEP (wired equivalent privacy), an encryption protocol that is easily broken. Even worse, 77 percent of the networks were not hot spots (networks offered by the airport or a provider like T-Mobile). Rather, eight out of 10 were insecure networks run by shops, restaurants and even the airport back offices.

The names of some of the access points -- for example, e-Baggage Trial -- gave the researchers clues that those networks...

Mon, 3 Mar 08
Intel Sees Tiny Atom Chip Powering Mobile Internet
http://www.newsfactor.com/story.xhtml?story_id=58606
Intel has launched a marketing campaign for a new class of microprocessors it had code-named Silverthorne during early development. The new chip family is now called the Atom "because the atom is the smallest element of matter, and here we have the smallest element of computing," said Intel Ultra Mobility Group Vice President Anand Chandrasekher.

The Atom is based on a new architecture and was designed specifically for very small and inexpensive portable devices with low power requirements, said Intel Executive Vice President Sean Maloney.

The Atom is "small yet powerful enough to enable a big Internet experience" on the latest portable devices, Maloney said. "We believe it will unleash new innovation across the industry."

Size of a Penny

Intel said its "Atom Inside" offerings are designed for mobile Internet devices and a new class of Internet-centric computers, while maintaining the chipmaker's "Duo" instruction set for dual-core microprocessors. And to boost performance and system responsiveness, the Atom includes support for multiple threads -- the forked-computing paths that enable PC programs to run two or more tasks simultaneously.

Each tiny sliver of silicon, which is packed with 47 million transistors, would fit in an area the size of a penny, said Gary Wilihnganz, Intel's ultra mobility marketing director. "It forms the basis of what is the new sexy: low power and small," Wilihnganz said.

Intel is manufacturing the new chips using the latest 45-nanometer process technology. Intel Mobile Platforms Group Vice President Mooly Eden said the advantage is that 45 nanometers "allows us to build a very small, low-power device that can operate without a fan and still give the required performance for delivering a great experience surfing the Internet and conducting basic PC operations."

'Netbooks' and 'Nettops'

Intel is targeting the Atom at a new category of low-cost mobile computing devices called "netbooks" as well as...

Mon, 3 Mar 08
Microsoft Expands Business Online Services
http://www.newsfactor.com/story.xhtml?story_id=58603
Microsoft's strategy of "Software plus Services" got an emphasis on services Monday as the company expanded Microsoft Online Services to small and midsize businesses. Companies with more than 5,000 employees got the services first last September. Those services include Exchange Online, SharePoint Online, Office Communications Online, and Office Live Meeting.

'Software as a Subscription Service'

Microsoft Chairman Bill Gates was to make the announcement at the company's SharePoint Conference in Redmond, Wash. "With Microsoft Online Services," he said, "businesses can deploy software as a subscription service, from servers they manage on-site" or that others manage. He added that this choice is being added to all of Microsoft's products.

Exchange Online uses Microsoft Exchange Server 2007 for communications, and SharePoint Online accesses Microsoft SharePoint Server 2007 for collaboration. The services will be available to all businesses in the second half of the year, and a trial can be accessed at http://www.mosbeta.com.

The services include e-mail, calendaring, contacts, shared work spaces and videoconferencing, plus real-time security, compliance and business continuity. They can all be managed through a single Web-based interface that enables monitoring, configuring users and tracking requests.

Many vendors are trying to reach the large market of small businesses, said Merle Sandler, an analyst with industry research firm IDC. She added that "it's too early to tell" if Microsoft's approach will work, noting that the software giant is apparently most interested in the higher end of "small businesses," which IDC defines as under 100 employees, as well as midsize businesses.

Sandler pointed out that software as a service (SaaS) is "such a logical way for a small business to go," with most small businesses lacking a full-time IT person until they hit about 50 employees. So, she said, any SaaS targeting that lower end would need to be manageable by regular employees.

Enter Google

One company targeting the lower...

 

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