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Sat, 31 Jan 09
Microsoft Will Fix Problems Before Final Windows 7
http://www.newsfactor.com/story.xhtml?story_id=64421
Now that a beta version of Windows 7 has been released to the public, Microsoft is letting users know what to expect next. Instead of moving on to a release candidate as in the past, Microsoft will first resolve problems reported by users.

Windows 7 beta was released Jan. 7 at the Consumer Electronics Show to MSDN, TechNet and TechBeta subscribers, and then to the rest of the world shortly thereafter.

"As we have said before, with Windows 7 we chose a slightly different approach which we were clear up front about and are all now experiencing together and out in the open," said Steven Sinofsky, Microsoft's senior vice president for Windows, in a blog post Friday.

Worth the Wait

Microsoft is working with PC makers, hardware engineers, and software vendors to get the operating system ready, echoing CEO Steve Ballmer's call to make it simple, reliable and fast. To do that, Microsoft said it is collecting performance telemetry and application compatibility data, as well as information on usage.

"Think of all those Web sites, download pages, how-to-articles, training materials, and peripheral packages that need to be created -- this takes time, and knowing that the release candidate is the final code that we're all testing out in the open is reassuring for the ecosystem," Sinofsky said.

The release candidate will be the final Windows 7, since Microsoft plans to make it available to PC makers.

Once ready, the release candidate will be a refresher for the beta version. Users are supporting Microsoft's new course, telling the Windows 7 team to take its time and give users a quality product.

Microsoft is doing just that by not offering any release dates and saying the company will not be driven by "imposed deadlines." Sinofsky, however, did say that Microsoft is making progress and echoed Ballmer's promise to...

Sat, 31 Jan 09
YouTube Set for Hollywood Partnership
http://www.newsfactor.com/story.xhtml?story_id=64420
YouTube and the William Morris Agency are nearing a deal that would put the Hollywood talent broker's clients in made-for-YouTube productions, according to a report in The New York Times.

The YouTube deal would reportedly give William Morris clients an ownership stake in the videos they create for the popular video Web site. William Morris represents the likes of actors Denzel Washington and Russell Crowe and producers Michael Bay and J.J. Abrams.

An agreement would give the agency's clients, which also include musicians and other celebrities, access to at least 100 million viewers, the latest figure comScore offered for YouTube traffic.

"This is inevitable. It's good for YouTube and good for people who are creating content that can't find a place on the TV or cable networks," said Phil Leigh, senior analyst at Inside Digital Media.

Monetizing YouTube Content

The Times cited anonymous sources who were not authorized to speak about the deal publicly. Those sources called the reported deal with the William Morris Agency YouTube's most far-reaching agreement yet to add professionally produced videos to the site. Most of the videos are user-generated.

The William Morris Agency and YouTube could not immediately be reached for comment. But the Times quoted Fred Davis, a senior partner at entertainment law firm Davis, Shapiro, Lewit & Hayes, as saying that the deal may include traditional media talent looking to expand into Web properties.

"Although everyone realizes that the monetization of this content is not quite there yet, everyone also realizes the huge potential as the digital media business matures," Davis told the Times.

Davis pegged YouTube's prime motivator: Monetizing content at its high-traffic video portal. The Google-owned company has attempted to generate revenue streams from advertising on the site, but most of the content is user-generated and the revenues have not reached what YouTube sees as the site's potential. To...

Sat, 31 Jan 09
NEC Will Exit LCD Panel Market Amid Rising Losses
http://www.newsfactor.com/story.xhtml?story_id=64419
NEC racked up a net loss of 130.8 billion yen (US$1.46 billion) in its third business quarter, versus a far less painful loss of 5.2 billion yen (US$57.9 million) in the year-earlier reporting period. Even worse, the Japan-based company indicated that the rising tide of red ink is far from over.

NEC told investors Friday that the company expects to lose 290 billion yen (US$3.23 billion) for its fiscal year that ends March 31. Previously, the company had been expecting a profit of 15 billion yen ($166.9 million). The company said it will reduce its global workforce by 20,000 jobs, primarily in its chip and LCD units, and exit the LCD panel market entirely in its next business year, which begins in April.

A Niche Player

NEC's decision to drop out of the LCD market marks the end of an era for one of the technology's early leaders and innovators, said David Barnes, vice president of strategic analysis at Displaysearch. "But it won't have much of an impact on the industry as a whole," Barnes said.

What happened in general is that NEC became less significant as its corporate strategies changed over time, Barnes observed. "The Japanese have become niche players, and NEC typifies that," Barnes explained. "In terms of large panel displays, NEC's total market share was less than 0.1 percent in 2008."

Riddhi Patel, a principal analyst at iSuppli, said NEC's departure won't affect the main LCD market categories "in any way, shape or form," but might have an impact on certain specialty segments -- such as medical displays, in which the company holds a eight percent market share. "NEC is a very small player when compared to Samsung, LG Electronics, and the major Taiwanese players," she said.

Barnes noted that NEC held about a three percent market share last year for...

Sat, 31 Jan 09
Amazon's Amazing Fourth Quarter Outpaces eBay
http://www.newsfactor.com/story.xhtml?story_id=64418
Online retailer Amazon.com has good news for the tech sector at a time when technology businesses are cutting profit forecasts, announcing massive layoffs, and eliminating future investments.

The Seattle-based company reported solid fourth-quarter sales Thursday and said profits for the quarter surpassed the company's estimates -- showing that Amazon.com is passing rival eBay on the path to growth.

Net sales for the quarter increased 18 percent to $6.7 billion in the fourth quarter, compared with $5.67 billion in the same quarter of 2007. Not including the $320 million impact from year-over-year changes in foreign-exchange rates throughout the quarter, sales would have grown by 24 percent compared to the same quarter in 2007, according to the company. Income for the quarter was up nine percent to $225 million from $207 million a year ago.

Leading the Pack

Amazon used the economic conditions and recession to woo holiday shoppers by offering shipping promotions and low pricing. The strategy worked, and Amazon reaped the benefits of its biggest holiday season in history, according to Amazon CEO Jeff Bezos.

Strong demand for the Kindle, Amazon's electronic book reader, also didn't hurt, according to Bezos, who said he was "grateful" for the demand.

In fact, as of Friday afternoon the Kindle was completely sold out "due to heavy customer demand." Users, however, were encouraged to reserve a place in line by placing their order anyway.

While online auction house -- and Amazon rival -- eBay has had great success since its launch in 1995, this quarter it turned in the other direction.

eBay suffered from the recession with a bleak holiday season and quarterly revenue decreases for the first time in its history. eBay reported $2.04 billion in fourth-quarter revenue compared to $2.18 billion in the same quarter last year.

John Donahoe, eBay's chief executive and president, said the holiday season...

Sat, 31 Jan 09
Subsidies May Hide Higher Cost for BlackBerry Storm
http://www.newsfactor.com/story.xhtml?story_id=64415
The BlackBerry Storm may not sell for more than an Apple iPhone, but it costs more to manufacture, according to market research firm iSuppli.

The BlackBerry Storm 9530 carries a combined materials and manufacturing cost of $202.89, according to iSuppli's Teardown Analysis Service. The cost to built an 8GB iPhone 3G is $174.

Verizon, the exclusive carrier for the BlackBerry Storm, sells the smartphone for $249.99 before a $50 rebate. AT&T sells Apple's iPhone 3G for $199, and both carriers require a two-year contract.

So is BlackBerry maker Research in Motion taking a bath on the device? Maybe not.

"The amount of money that it costs to build a phone has nothing to do with the amount of money the handset vendor makes because there are subsidies involved," said Avi Greengart of Current Analysis. "So it is possible that there are heavier-than-usual subsidies being applied to this phone. It certainly wouldn't surprise me."

RIM's Clickable Screen

iSuppli said the Storm matches up with the iPhone 3G in attributes and functionality. Both phones combine wireless voice communications with other features, including Internet access, e-mail, built-in GPS, messaging and an integrated camera. Both phones offer a touchscreen.

"The touchscreen and the resulting user interface represent the focal point of the Storm's design from the user's point of view, as it is with the iPhone," said Andrew Rassweiler, teardown services manager for iSuppli. "However, RIM has added a special differentiating feature from the iPhone: The 'clickable' screen."

According to Rassweiler, the one thing that most touchscreens lack is the feedback mechanism users get from a conventional keyboard that clicks when a key is depressed, letting you know your choice has been registered.

"Clearly," he said, "RIM felt this was lacking and added an actual physical button that allows users to feel and hear a click when they make a selection...

Sat, 31 Jan 09
Dell May Compete with iPhone in Smartphone Arena
http://www.newsfactor.com/story.xhtml?story_id=64400
In a move to generate new revenue amid a slumping PC market, Dell is reportedly entering the smartphone market. It could launch its first device in February.

Citing people familiar with the matter, The Wall Street Journal reported Dell has had a group of engineers working on the phones for more than a year and has produced prototypes built on Google's Android operating system and Microsoft's Windows Mobile software.

One of the Dell models reportedly mimics Apple's iPhone, donning a touchscreen device without a traditional keyboard, while the other is a slider-style phone with a full QWERTY keyboard, the Journal said.

The Smartphone Bandwagon

If the rumors are true, Dell would be the latest electronics maker to enter the smartphone market, following in the footsteps of Apple. Dell would face stiff competition from Apple, Research in Motion, and Palm, among others. RIM and Apple hold 70 percent of the U.S. market for smartphones.

Still, with the market for smartphones growing and the market or PCs shrinking, at least temporarily, Dell may indeed be preparing to make its move.

Consider the contrary statistics. According to IDC, 157 million smartphones were sold worldwide last year, up 26.9 percent from 2007. What's more, IDC predicts smartphone shipments will nearly double to 301 million by 2012.

By contrast, the PC market that Dell dominates is struggling in the face of a global recession. In the fourth quarter, PC shipments slid 0.4 percent from the year-ago period, according to IDC.

With smartphones offering many functions of a PC (e-mail, Web browsing, document viewing, music and video) Dell's move may be inevitable. Dell wasn't immediately available to comment.

What are Dell's Chances?

"Dell has publicly said that they intend to play in devices from two-inch screens to 20-inch screens," said Avi Greengart, an analyst at Current Analysis. "Dell has long been looking at this...

Sat, 31 Jan 09
Verizon To Shut Down Internet Phone Service
http://www.newsfactor.com/story.xhtml?story_id=64390
Verizon Communications Inc. has told customers it is shutting down its VoiceWing Internet-based phone service to focus on other technologies.

VoiceWing will be permanently shuttered on March 31, the phone company told customers in a letter last week. Those who want to keep their phone numbers can move them to other services, but the process may take up to three weeks, so there's not much time to find an alternative.

As with AT&T's CallVantage and the phone services of Vonage Holdings Corp., VoiceWing subscribers got a small adapter that allowed them to place calls by connecting a phone to a broadband Internet line.

Such Voice over Internet Protocol, or VoIP, services sprouted up in the early years of the decade, but have lost steam amid persistent problems with audio quality and a patent litigation offensive from phone companies, including Verizon, against market leader Vonage. Cable companies, meanwhile, have used similar technology to successfully introduce their own phone services.

Deltathree Inc., the VoIP company that ran the back-end services for VoiceWing, is running out of money and has seen its stock delisted from the Nasdaq Stock Market.

The shutdown of VoiceWing "was a business decision based on a number of factors including the strategic fit of the service in our evolving digital voice portfolio," said Verizon spokeswoman Bobbi Henson.

The New York-based company recently announced "The Hub," a multifunction touch-screen home phone that connects to a broadband line. It is also planning to introduce a VoIP service for customers on Verizon's own fiber-optic connections. VoiceWing was available to anyone with an Internet connection.

Henson said VoiceWing was "a niche service that was never mass marketed." The company does not disclose how many customers VoiceWing has, but Henson said it was not material.

AT&T Inc. stopped signing up new subscribers for CallVantage last summer.

Sat, 31 Jan 09
House Votes Down Digital TV Delay
http://www.newsfactor.com/story.xhtml?story_id=64388
House Republicans defeated a bill Wednesday that would have delayed the USA's transition to digital TV by four months to June 12 to give consumers more time to prepare.

Unless a new bill is passed quickly, the USA will become an all-digital TV market on Feb. 17, as originally planned. Digital TV, or DTV, offers clearer pictures, more choice and more channels to people who receive over-the-air TV signals. Cable and satellite TV customers aren't affected.

Gene Kimmelman of Consumers Union, which supports a delay, says the House plans to vote again next week. "This was a bump in the road, but we expect this to pass overwhelmingly" next week, he said.

Trying to speed things along, the House opted to vote on the bill in a way that required a two-thirds majority to win. The 258-168 vote fell just short of that. The same bill defeated in the House was approved unanimously by the Senate last week. President Obama also supports a delay.

One big area of contention among lawmakers: What to do about the coupon program that offers consumers $40 vouchers to help offset the cost of buying a converter box, which turns digital signals into analog.

The program, conceived by Congress and overseen by the Commerce Department's National Telecommunications and Information Administration, ran out of money in December. Since then, NTIA has been putting consumers on a waiting list.

There are more than 3.2 million people on the list; thousands of new names are added daily. Once a coupon request has been approved, it takes four to six weeks to process.

Analog TVs will go dark once the switch happens, and will stay that way until a converter box is hooked up. Boxes cost $40 to $70 each. Households are entitled to two coupons, which expire after 90 days.

According to NTIA, about 46.5 million...

Sat, 31 Jan 09
AOL Axing 700 Jobs in Cost-Cutting Move
http://www.newsfactor.com/story.xhtml?story_id=64387
Time Warner Inc.'s AOL business is cutting up to 700 jobs, or about 10 percent of the Internet unit's work force, in a bid to cut costs. AOL is being squeezed by the recession and trying to focus on three advertising-centric businesses.

AOL Chief Executive Randy Falco told employees in a memo Wednesday that AOL plans to cut the jobs in the next several quarters, and that the company hopes to have any U.S.-based cuts completed by the end of March. He also said that AOL will skip merit pay raises in 2009.

"Reducing our work force is never easy, particularly in the current climate, but our goal in doing this is to provide our core businesses the resources they need to thrive," Falco said.

These "core businesses" are AOL's "Platform A" advertising unit, "MediaGlow" publishing unit and "People Networks" social media unit. AOL has spent the last several years realigning itself around these three units -- which are meant to bring in revenue through online advertising -- as a way to offset losses from its fading dial-up Internet access service.

Traditionally, AOL was a dial-up Internet access provider. At its peak, the company had 26.7 million dial-up subscribers in September 2002. But that number has fallen drastically in the years since, as consumers began moving to faster broadband Internet services. In the third quarter, AOL reported a loss of 634,000 Internet-access subscribers, bringing its total to 7.5 million by the end of September.

In addition to AOL's realignment, Time Warner has worked to separate the dial-up operations from these ad-focused operations -- a move that would make it easier for Time Warner to sell one or both.

The company has been in continual discussions with both Yahoo and Microsoft over AOL's Web sites and ad operations, while rival access provider EarthLink Inc. is seen as...

Sat, 31 Jan 09
Mac's Short-Term Future Bright, but 25 Years from Now?
http://www.newsfactor.com/story.xhtml?story_id=64384
Apple's Macintosh has been a trendsetting computer since its launch 25 years ago. But what about the next 25?

In the near term, things look good for the Mac and its ability to influence the industry, experts say. Apple is selling more computers than ever these days and continues to introduce innovations large and small to the Mac line.

But longer term, the Mac's influence could wane. The PC industry has adopted a common interface -- the windows-style one that Apple popularized -- and a small range of hardware designs and underlying architecture, making it harder for any computer to stand out.

As the computer industry has matured, innovation has moved away from the PC toward smaller devices, such as smartphones, and toward developing services on the networks -- the so-called cloud -- to which PCs and smart-phones connect.

"The biggest question Apple faces is how it operates in a world of "cloud computing," said Charles Smulders, an analyst who covers the PC industry for Gartner, a technology research firm. "We expect a lot of change in (that area) in the next two to five years."

The Mac represented a big change itself when it appeared on the scene 25 years ago. It and its successors popularized the graphical user interface, desktop publishing, Wi-Fi networking and other technologies long before they became standard on other PCs. And Apple continues to add innovations to the line.

Earlier this month, the company introduced a new battery technology that will allow its latest laptop to run for eight hours without recharging. Last fall, Apple started constructing most of its laptops out of single chunks of aluminum, giving them a sturdier but still lightweight design. Analysts also expect Apple to take some of the touch-screen technology it built into the iPhone and use it on the Mac line.

These and other...

Sat, 31 Jan 09
EU Faced With Defiance by Intel
http://www.newsfactor.com/story.xhtml?story_id=64379
A decision by Intel, the U.S. microchip maker, to defy European antitrust investigators raised questions Wednesday about how the European Commission should handle the remainder of the investigation and discourage similar behavior in future.

"This is an unprecedented situation," said Jonathan Todd, a spokesman for Neelie Kroes, the EU competition commissioner. "Never before has a company failed to defend itself by failing to reply to a statement of objections."

Intel let a deadline to respond to the commission's formal charges, known as a statement of objections, pass on Oct. 17. The company then brought a case at Europe's second-highest tribunal, the Court of First Instance, asking for more time to respond and for the commission to consider more evidence. Intel lost that procedural appeal on Tuesday.

The commission, the executive agency of the European Union, has enforcement powers in antitrust matters. If Kroes rules that Intel broke European laws, then Intel's behavior could lead the commission to impose a larger fine than it would have done otherwise if the company had followed the set timetable.

In the meantime, the commission must decide whether to give Intel another chance to respond to the charges.

"We will see what Intel proposes to do and we will see what our response to that is," Todd, Kroes spokesman, said.

The commission accuses Intel of abusing its dominant position in computer chips by giving large rebates to computer makers, by paying computer makers to delay or cancel product lines and by offering chips for powerful server computers at prices that are below actual cost. The EU investigation began in 2000 after a complaint by an Intel rival, Advanced Micro Devices, or AMD, which is also based in the United States. Last year, the Korea Fair Trade Commission fined Intel $25 million for its dealings with computer manufacturers, and the U.S....

Sat, 31 Jan 09
Apple Freshened iPhoto for Easy Photo Organization
http://www.newsfactor.com/story.xhtml?story_id=64377
Faces. Places. In a nutshell, that's how Apple is polishing up the latest version of its iPhoto photo-management program. IPhoto promises to recognize the subjects in your photographs. And the locations where pictures were snapped.

These new tools are handy. But Faces comes with some blemishes.

IPhoto '09 shows up this week as part of Apple's iLife '09 software suite. It joins sweet new versions of iMovie and GarageBand and is rounded out more modestly by iDVD and iWeb. The programs come on new Macs or are sold at retail for $79.

The inclusion of iLife software is a major reason I have found Mac computers so appetizing.

Here's an iPhoto close-up:

*Face-off. In the previous version, iPhoto automatically grouped images into "Events," each with a day's collection of pictures unless you specified otherwise. So you could segregate pictures by a kid's birthday party or college reunion.

The new iPhoto goes well beyond that by letting you organize and search for pictures based on who is in them and where they were shot.

The Faces feature uses face detection and recognition technologies to locate actual mugs (the process is done in the background) and determine who the people are. The concept isn't new, though it's still in its infancy. Google's Picasa, among other programs, has some version of face recognition.

In the handsome Faces view, a single snapshot is shown on a corkboard for every person whose face you've identified. Double-click on a face to see all the underlying images -- convenient when you're trying to find just the right image of your kid. Or roll your mouse over the snapshot representing a face to rapidly skim through the other images you have of that person. You can also create "Smart Albums" to easily find photos of family members. Good stuff.

You must assign a name tag the first...

Fri, 30 Jan 09
Streaming Energizes Growth at Netflix
http://www.newsfactor.com/story.xhtml?story_id=64399
Confounding its own outlook for slowing growth in the fourth quarter, Netflix said its subscriber base grew by a robust 26 percent year over year to about 9,390,000 subscribers at the close of 2008.

"In hindsight, we underestimated the positive impact of the introduction of the multifunction consumer electronics devices from LG Electronics, Samsung, Microsoft and TiVo that promote Netflix streaming," said Reed Hastings, Netflix cofounder and CEO. "The precise impact of the recession is unclear, but it is very clear that streaming is energizing our growth."

Increased Investments

Netflix substantially increased its investment in streaming content over the Internet during the fourth quarter and plans to do the same this year. "Most of our streaming content spending is directly with TV networks and studios," Hastings told investors. "We now have over 12,000 movie and TV choices, up from 2,000 two years ago, and we are already one of the studios' largest revenue sources."

Netflix is also beefing up its content-streaming capabilities on the hardware side. Earlier this month, the company expanded its partnership agreement with LG Electronics and inked a new agreement with HDTV vendor Vizio.

LG Electronics has agreed to embed Netflix streaming software directly into its new line of broadband-enabled HDTVs, eliminating the need for an external device. Additionally, Vizio's new deal with Netflix means consumers will be able to stream high-definition video content from Netflix to TV sets based on Vizio's new Connected HDTV platform, which will begin shipping nationwide later this year.

Hastings told investors he fully supports Roku's recent decision to add functionality to its Netflix-enabled set-top box that would enable consumers to stream pay-per-view content from Amazon.com. Hastings said any increased competition would mostly be indirect because it would come in the form of "big new releases," which Netflix does not offer as part of its...

Fri, 30 Jan 09
Trusted Computing Group Finishes Hard-Drive Specs
http://www.newsfactor.com/story.xhtml?story_id=64398
The Trusted Computing Group on Thursday released final versions of three specifications to strengthen data protection, help organizations comply with regulations, and secure corporate information.

The specifications for storage devices offer a blueprint for developing self-encrypting hard drives that lock data, can be immediately and completely erased, and can be combined with the Trusted Platform Module. Major storage vendors, including Hitachi, Toshiba and Seagate, support the specifications.

The Privacy Rights Clearinghouse estimates that in the United States alone, 251,154,519 records have been lost or stolen since January 2005. What's more, some 12,000 notebook PCs are lost or stolen in airports in the United States, with only 33 percent recovered.

"Lost and stolen data costs industry and consumers hundreds of millions of dollars, not to mention loss of credibility, legal issues, and lost productivity," said Robert Thibadeau, chairman of the Trusted Computing Group's storage work group. "TCG's approach to trusted storage gives vendors and users a transparent way to fully encrypt data in hardware without affecting performance so that data is safe no matter what happens to the drive."

Minding Data-Protection Laws

The Opal specification outlines minimum requirements for storage devices in PCs, while the Enterprise Security Subsystem specification deals with data centers and high-volume applications. The Enterprise specification defines encryption of data and supports access control.

The Storage Interface Interactions specification covers how the TCG's existing Storage Core specification and other specifications interact and sets standards for storage interfaces and transports.

"With 48 states and many countries enforcing data-protection laws, it has become crucial for enterprises to protect all data to avoid fines, lawsuits or even being put out of business," said Jon Oltsik, senior analyst for the Enterprise Strategy Group. "Encryption with authentication directly in the drive or enterprise storage devices, as outlined in the Trusted Computing Group specifications, is one of the most effective...

Fri, 30 Jan 09
SP2 for Vista, Server 2008 Reportedly Sent to Testers
http://www.newsfactor.com/story.xhtml?story_id=64397
With Windows Vista hanging in the balance between a coming-to-life Windows 7 and a refusing-to-die Windows XP, a second service pack for Vista and Windows Server 2008 has reportedly been sent to testers. The reports say a release candidate escrow build has been sent for feedback, with other versions to be available in the next few months.

'An Additional Incentive'

The Malaysia-based TechARP Web site reported Microsoft was "doing its best to rush out" the new service pack for Vista so people would have an "additional incentive to upgrade to Vista now, instead of waiting for Windows 7."

The site said its "confidential source" said the escrow build was released early, rather than in February as it originally reported. A release candidate escrow build indicates that coding has stopped, with efforts being put into finding bugs that could force a recall.

The release candidate build will be shipped the week of Feb. 16, according to the site. A release to manufacturing, including OEMs, will happen sometime between the beginning and middle of the second quarter, it said. A final release-to-Web date is still to be determined, but the site speculated it might be in April or May, "barring any further delays."

TechARP.com's reports are respected, since it accurately predicted the release schedule for Vista SP1 and XP SP3 last year. The site is also predicting that Microsoft will not require hardware makers to include Vista SP2 on new machines, which would have required new testing by the manufacturers.

Windows 7, the successor to Vista, was shown publicly in beta earlier this month, but a release schedule hasn't been announced. It's expected to be released by early 2010. As for a Vista and Windows Server SP2 release date, Microsoft has acknowledged only that it is targeting the second quarter.

New Features

New...

Fri, 30 Jan 09
Nintendo Cuts Profit Forecast as Sony, Toshiba Stumble
http://www.newsfactor.com/story.xhtml?story_id=64396
A mix of strong currency in Japan along with a decrease in sales of TVs, digital cameras and other consumer technology devices has left three Japanese industry giants with earnings headaches. Sony, Nintendo and Toshiba all reported poor earnings for their third fiscal quarters.

Sony, which in recent months has had to close some plants, cut thousands of jobs, and decrease investment, reported a 94.8 percent drop in profits for the quarter. Its game-segment sales fell 32.2 percent from the same quarter a year ago.

Sony on Thursday also announced that it will postpone a previously announced joint venture with Sharp to produce and sell large LCD panels and modules until March 2010, a year later than originally scheduled.

A Surprise Forecast

Nintendo's fall wasn't as hard, but the maker of Wii video-game consoles reported earnings fell 18 percent in the nine months through December.

While Sony has made it clear it's struggling because of the recession and a strong yen, Nintendo surprised analysts by lowering its profit forecast for its fiscal year a second time. Nintendo has had rock-solid sales for both its Wii gaming console and DS handheld device, but downgraded its full-year profit forecast by 33 percent to 230 billion yen (US$2.6 billion.

As of Dec. 31, Wii sales worldwide were 44.96 million units, a 10 million increase from October. In December alone, 2.15 million Wiis were sold, according to NPD Group. Since Nintendo launched its DS portable gaming device in November 2004, it has sold 96.22 million units. In December, Nintendo sold 3.04 million DS units in the US.

Still, expected foreign-exchange losses of 200 billion yen (US$2.2. billion) for the fiscal year are to blame for the downgrade, the company said.

NEC Electronics, the supplier of chips for Nintendo's Wii gaming consoles, also had forecast an annual...

Fri, 30 Jan 09
Video Games Lead Sony's 95 Percent Profit Drop
http://www.newsfactor.com/story.xhtml?story_id=64395
Sony on Thursday reported a 95 percent decline in profit for the fourth quarter of 2008. The electronics maker didn't get the sales boost it hoped for during the holiday shopping season as consumers turned to competing products.

The Japanese company said sales decreased 24.6 percent year over year as its electronics division sales plunged 29.3 percent in the wake of yen appreciation, the economic downturn, and intensified price competition.

In the Sony Pictures segment, sales decreased 21.8 percent year over year due to a boost from the worldwide home-entertainment release of Spider-Man 3 in the same quarter of 2007, Sony said.

"From the second half of September last year, there has been a sudden deterioration in the economy, and with the effects of foreign exchange it has had severe consequences on our business," Sony Chief Financial Officer Nobuyuki Oneda said in an Associated Press report.

The Problem with PlayStation 3

Sony's game segment performed even worse. Sales decreased 32.2 percent compared to the fourth quarter of 2007. Sony is moving to reverse that trend. Sony Online Entertainment inked an exclusive publishing agreement with PopCap Games on Thursday. PopCap markets games that appeal to all ages.

The agreement will bring five hit titles to the PlayStation Network, with the first, Bejeweled 2, available immediately for download in North America, with European versions to follow later. Zuma, Heavy Weapon, Peggle and Feeding Frenzy will soon be available for download. Sony hopes the agreement will position it to compete more effectively against Nintendo's Wii.

Nintendo has sold 44.96 million Wii units worldwide and expects to report $2.6 billion net income for the year ending March 31. That's 33 percent less than the company projected in October. The company is also cutting its forecast for operating profit by 16 percent and cut Wii sales forecasts by one million in...

Fri, 30 Jan 09
Verizon Says BlackBerry Storm Selling Well Despite Barbs
http://www.newsfactor.com/story.xhtml?story_id=64372
The first touchscreen BlackBerry, the Storm, received a mixed reception from reviewers when it launched in late November. But Verizon Wireless, the exclusive U.S. carrier, said earlier this week that the smartphone has taken the market by storm, with one million sold.

Verizon is using that sales figure to counter a report in The Wall Street Journal on Monday, which characterized the Storm's launch as a "bit of a bumpy start." Despite a marketing campaign of more than $100 million, the newspaper said, some buyers complained that it was buggy.

Selling at a Loss?

At launch, the Storm was immediately compared to the best-known touchscreen smartphone, Apple's iPhone 3G. Verizon's sales figure of one million over about two months compares well with Apple's sale of about 2.4 million iPhone 3Gs in its first full quarter.

But a new report from iSuppli raises a new area of comparison. The market researcher said that its analysis of the Storm's components show that not only are the constituent parts more expensive than the iPhone's, but its maker, Research in Motion, is essentially selling the phone at a loss.

iSuppli indicated that the Storm's cost of components and manufacturing is a bit less than $203, while the iPhone 3G comes in at less than $175. Software and other costs are not calculated. The Storm and the iPhone are roughly equal in price, about $200, after accounting for the Storm's rebate.

That comparison misses the point, said Current Analysis' Avi Greengart. While not commenting directly on the specific pricing assessment by iSuppli, Greengart pointed out that, even if the prices are accurate, "Verizon Wireless is subsidizing the cost of the phone over the life of its contract," as AT&T is doing with the iPhone.

Keyboard Expectations

Greengart also noted that the news of one million Storms sold is good from a public-relations perspective,...

Fri, 30 Jan 09
Google M-Lab Probes Flaky Internet Connections
http://www.newsfactor.com/story.xhtml?story_id=64371
Google on Wednesday launched its latest innovation -- one that sheds new light on a controversial problem: Net neutrality.

Called Measurement Lab, the tool seeks to reveal whether the root cause of a flaky Internet connection is your broadband Internet service provider, the application, your PC, or something else. Google partnered with academic researchers to develop a solution.

Google, the New America Foundation's Open Technology Institute, the PlanetLab Consortium, and academic researchers launched M-Lab, an open platform that researchers can use to deploy Internet measurement tools.

Will M-Lab Bust the Bottleneck?

Researchers are already developing tools that allow users to measure the speed of their connection, run diagnostics, and attempt to discern if their ISP is blocking or throttling particular applications, according to Google Chief Internet Evangelist Vint Cerf and Principal Engineer Stephen Stuart. Cerf is one of the architects of the Internet.

So how is M-Lab different? As Google describes it, existing tools generate and send some data back and forth between the user's computer and a server elsewhere on the Internet. Unfortunately, Cert and Stuart said, researchers lack widely distributed servers with ample connectivity, which poses a barrier to the accuracy and scalability of these tools. Researchers also have trouble sharing data with one another. M-Lab sets out to address these problems.

"Over the course of early 2009, Google will provide researchers with 36 servers in 12 locations in the U.S. and Europe. All data collected via M-Lab will be made publicly available for other researchers to build on," Cert and Stuart wrote in the Google blog.

Rekindling a Controversy

Google's M-Lab rolls out just more than a week after the Federal Communications Commission launched an investigation into Comcast's network-management practices. The timing of these events may rekindle the controversy around Net neutrality, which aims for equality among broadband users with no restrictions on content,...

Fri, 30 Jan 09
Network Storage Product Roundup
http://www.newsfactor.com/story.xhtml?story_id=64364
Firewall/VPN

FireTunnel 30 combines an eight-port 10/100 switch, router, firewall and VPN. The rack-mountable 1U appliance offers support for up to 30 VPN tunnels and load balancing across two WAN connections. Quality-of-service features give priority to network packets from time-sensitive applications, such as video or VoIP, and can limit bandwidth to some users. A password-protected, Web-based management interface enables administrators to configure and manage the device. No special VPN client is necessary for Windows 2000, XP and Vista.-Black Box Network Services

Retrospective Network Analysis

Operating like a network DVR, GigaStor SAS, a retrospective network-analysis appliance, captures and stores up to 288 TB of data, and offers time-based playback and analysis to eliminate the need to recreate network problems. The serial-attached storage solution is offered in attachable 16-TB increments to monitor LAN, WAN, Ethernet, gigabit, 10 Gb, OC and Fibre Channel networks. -- Network Instruments

Branch Office Security

The StoneGate FW-310 firewall/VPN appliance offers unified threat management security, including a firewall, VPN, intrusion prevention and antivirus for Web traffic, e-mail and VoIP, for remote locations. With 250 Mbps firewall throughput, 60 Mbps VPN throughput and centralized management, the FW-310 can be implemented at low -- traffic sites or branch offices. With four interfaces, the solution enables small-scale network segmentation, either in internal networks or by creating a demilitarized zone for external services. -- Stonesoft

Network Access Control

Ensuring security in heterogeneous network environments, ZENworks Network Access Control uses policies to grant or deny access to the network based on tests that determine if a device meets defined security criteria from patches to host-based firewalls. The solution performs preconnect testing for Windows and Macintosh devices; post -- connect revalidation repeated on defined time intervals; identity -- based management; and quarantine and remediation when non-compliant devices attempt to access the network.-Novell

Network Storage Server

Maxtor Central Axis Business Edition dual-drive network...

Fri, 30 Jan 09
Why the Stimulus Bill Discounts Broadband
http://www.newsfactor.com/story.xhtml?story_id=64347
Barack Obama made sophisticated use of technology during his run for the White House. And throughout his campaign, the BlackBerry-addicted candidate stressed the transformative power of technology, making a high-profile promise to provide high-speed Internet access to all Americans.

But when the House unveiled a preliminary version of the economic stimulus plan, crafted with some input from President Obama's advisers, the amount of money allocated for broadband Internet development was much lower than experts had anticipated. In the $825 billion proposal, only $6 billion was aimed at broadband, far short of the $12 billion to $30 billion that industry experts estimate it would cost to wire the nation. The House bill allocated the same amount of money to weatherizing the homes of low- and moderate-income people.

The stimulus proposal still has to make its way through the Senate and may be changed substantially before it's signed by the President. But many in the tech industry are contemplating some tough questions: Why did broadband get slighted? Will the technology get more government funding in the future? And does the debate over broadband foreshadow how the technology community will be treated in the future by the Obama Administration?

More Money in the Future?

Blair Levin, a former senior official at the Federal Communications Commission, was a top technology policy adviser on the Obama transition team. In an interview with BusinessWeek, he says that more money could be allocated to broadband in the future. "Did we leave the door open to additional money?" asked Levin. "I think the answer is the door is open and should be open."

Levin and other technology leaders say there are several reasons that broadband got less money than expected in the stimulus bill. For starters, there is no track record of the federal government funding broadband networks. That made it harder to...

Fri, 30 Jan 09
Nielsen: Newspapers Getting More Web Visits
http://www.newsfactor.com/story.xhtml?story_id=64345
Leading U.S. newspaper Web sites are getting more visitors, and those visitors are coming more often, in what might be a small bright spot for an industry struggling with declining revenue.

However, those visitors aren't spending much time on the newspaper Web sites. They averaged slightly more than a half-hour at the top 10 sites during all of December.

The latest figures from Nielsen Online underscore the struggles that newspapers still face with how to translate their audiences into revenue. So far, online ads aren't generating enough dollars to offset losses from print, where ad sales worsened last year because of the recession.

"Unless you can grab a greater share of people's attention, you cannot hope to sell that much advertising to them," said Ken Doctor, a media analyst at Outsell Inc.

According to Nielsen, 40 million people in the United States visited at least one of the top 10 newspaper sites in December, a 16 percent increase over the previous year. The New York Times remains the top newspaper site, with 18 million unique visitors in December, an increase of 6 percent. USA Today and The Washington Post follow.

Nielsen said visitors were returning more often. Each visitor came, on average, 6.3 times in December, compared with 5.8 times a year earlier.

"People who have become news consumers have become much more aggressive news consumers," said Jon Gibs, vice president for media analytics at Nielsen Online.

But while heavy news consumers are spending more time at the sites, those sites also now get a lot more casual visitors. That makes the average visit relatively brief. The average time spent at the top 10 newspaper sites in December -- 32 1/2 minutes -- rose just 2 percent from the same month in 2007.

And that 2 percent increase lags the 9 percent hike in time spent at all...

Fri, 30 Jan 09
Free Optimization Program Cleans Up PCs
http://www.newsfactor.com/story.xhtml?story_id=64344
Even in a tight economy, you can always find bargains for your PC. Case in point for this week is CCleaner from Piriform Ltd. It is a freeware PC optimization tool that's as good or better than products costing $50 or more. Why pay for something you can get for free?

CCleaner might not contain all the bells and whistles of its expensive commercial counterparts, but then again, the majority of those are comprised of a few good tools surrounded by run-of-the-mill filler. Gathered together, they can call it a suite, but that doesn't make it a sweet deal for consumers.

Rather than charging a lot for more stuff than you want or need, CCleaner cuts to the chase and delivers the goods without all the extraneous junk.

There's also no nag screens, time limits, disabled features or hidden advertisements. No charge, no catch.

Extremely small, fast and efficient, CCleaner takes just seconds to analyze your complete system and make its recommendations for optimization. Here's a short list of the items it cleans:

-- Web browsers are notorious for inviting system bloat and harboring malware. CCleaner does away with both by clearing the temporary file cache, URL history, cookies, hidden index.dat files and the last download file location from browsers such as Internet Explorer, Firefox, Safari and Google Chrome.

-- Ridding your computer of unnecessary files can greatly improve system performance. CCleaner scrubs out your Windows' clipboard, recycle bin, temporary files, Windows log files, old Prefetch data and file fragments left over from a Chkdsk session. Other hidden items that can make your PC run smoother after a good cleaning include the system tray notification cache, windows size and location cache and Internet Information Service logs.

-- Removing junk from your computer can improve system security. CCleaner wipes out things like the recent document list, run...

Fri, 30 Jan 09
Cox To Test New Way To Handle Internet Congestion
http://www.newsfactor.com/story.xhtml?story_id=64338
Cox Communications, the third-largest U.S. cable company, stepped on to the battleground of the "Net Neutrality" issue Tuesday, saying it will be trying out a new way to keep its subscribers' Internet traffic from jamming up.

Starting on Feb. 9 in parts of Kansas and Arkansas, Cox will give priority to Internet traffic it judges to be time-sensitive, like Web pages, streaming video and online games. File downloads, software updates and other non-time sensitive data may be slowed if there is congestion on the local network, Cox said.

The news is sure to revive the debate about Net Neutrality, or the question of how much Internet service providers like Cox can interfere with subscriber traffic. Comcast Corp., the nation's largest cable company, was sanctioned by the Federal Communications Commission last year for its method of traffic management, which involved secretly stifling file sharing, a certain type of Internet traffic. It was the first time regulators waded into the issue.

Comcast is fighting the FCC's ruling in court, but has abandoned its congestion management system in favor of one that doesn't discriminate between different types of traffic. It has also abandoned secrecy and revealed details on how the new system works.

Tests conducted by the Max Planck Institute for Software Systems in Germany indicated last year that Cox was using the same discriminatory network management system that Comcast employed then. Cox never revealed the details of its system but said it used "protocol filtering," a principle also used by Comcast.

Further testing by the Max Planck Institute indicated that Cox cut back sharply on its use of the old congestion system in August, and that it was shut down by January.

Cox spokesman David Grabert said the company began evaluating its old system after the FCC order on Comcast.

"This new technique is based on the time-sensitive...

Fri, 30 Jan 09
New Sun Data Center Slashes Energy Costs
http://www.newsfactor.com/story.xhtml?story_id=64296
Centers that house computer servers and store data aren't friends of the Earth.

Between 2000 and 2006, data center energy consumption more than doubled in the U.S., according to the Environmental Protection Agency. Consumption exceeded that of all the country's color televisions.

Sun Microsystems has spent the past 41/2 years rethinking the industry.

On Monday, Sun unveiled its latest effort -- a data center in Broomfield [Colorado] projected to save the company more than $1 million in electricity costs and 11,000 metric tons of carbon dioxide emissions a year.

The data center consolidates 496,000 square feet of space at the former Storage-Tek campus in Louisville into 126,000 square feet. That will help Sun, which has been praised for encouraging telecommuting, reduce its U.S. carbon footprint by 6 percent.

Tom Plant, director of Gov. Bill Ritter's Energy Office, called the project an "amazing accomplishment" that exemplifies the governor's plan to reduce emissions of global warming gases 20 percent by 2020.

It also was born out of pragmatism.

"We wanted to get our portfolio (of technical space) under control (economically)," Dean Nelson, Sun's senior director of global lab and data center design services, told the dozens of people at Monday's event. "We didn't do it (only) to save the planet."

Santa Clara, Calif.-based Sun, like other U.S. companies, is under economic pressure and last week issued layoff notices to 1,300 employees, including 195 in the Broomfield area, two months after announcing plans to cut up to 18 percent of its work force.

The Broomfield data center builds on innovative designs introduced in Sun centers in Santa Clara, China, Czechoslovakia, India, Norway and the United Kingdom.

The centers are based on a generic modular or pod design that enables components to easily be plugged in, with higher densities achieved as technologies advance. For example, 63 servers and 30 storage devices were compressed...

Thu, 29 Jan 09
Data Privacy Day Seeks To Raise Awareness
http://www.newsfactor.com/story.xhtml?story_id=64370
It's the second annual Data Privacy Day. The United States, Canada and 27 European countries worked Wednesday to drive awareness and generate discussion about data-privacy practices and rights.

In conjunction with the event, Microsoft commissioned focus-group research to determine which privacy issues are most important to consumers. The Harris Interactive survey highlights the most common forms of online fraud attacks and consumers' awareness of how to avoid them.

Nearly one out of five persons surveyed has been a victim of at least one Internet scam. Of those people, 81 percent admitted they did something that led to the crime, such as opening an e-mail that appeared to be from a legitimate person or company. More than half of the respondents (58 percent) admitted they had little to no knowledge of current online threats and scams.

Consumers Don't Understand Threats

While many consumers are very concerned about protecting online privacy, they typically have only a surface understanding of the threats they face, according to Microsoft Chief Privacy Strategist Peter Cullen. People take basic steps such as using spam filters, deleting cookies, and installing antivirus software, he said, but they're not necessarily aware of what these technologies do.

"People also have a perception that once their information is online, there isn't much they can do to protect it," Cullen said. "Many people aren't aware of the controls they have, such as the ability to opt out of behaviorally targeted advertising or new tools in Internet browsers."

What's more, specific concerns and risks change depending on how people use the Internet. Cullen offered an example: Threats to privacy from social-networking sites are a large concern for young people and, increasingly, middle-aged professionals. Online finance issues, on the other hand, may affect older people more.

"What these findings tell us is that we must do more to educate consumers. People are...

Thu, 29 Jan 09
Strong iPhone Sales Bring More Subscribers To AT&T
http://www.newsfactor.com/story.xhtml?story_id=64369
AT&T said it activated 1.9 million iPhone 3Gs in the fourth quarter. It also reported iPhone 3G activations topped 4.3 million in the second half of last year.

"I think the most important step that we took in 2008 was our iPhone 3G launch," AT&T Chairman and CEO Randall Stephenson told investors. "In less than six months we activated more than four million units, and 40 percent of those were for new customers to AT&T."

Strong iPhone Sales

But despite strong wireless growth, AT&T's quarterly earnings fell to $2.4 billion, or $0.41 per share, from $3.1 billion, or $0.51 a share, in the same quarter of 2007. Still, Stephenson remained upbeat, telling financial analysts that AT&T more than doubled the number of integrated devices running on its wireless network in the past year. "The iPhone was obviously a very big part of that," he said.

Stephenson noted that AT&T's iPhone exclusive continues to deliver high-value subscribers, with average revenue per user approximately 1.6 times higher -- and subscriber churn significantly lower -- than the company's overall postpaid subscriber base. "In simple words, what I'd tell you is that we are winning at the high end," Stephenson said.

AT&T pays a price for its iPhone exclusivity in the United States. The subsidies that the wireless carrier paid to Apple in the fourth quarter, the company said, reduced earnings by $450 million, or five cents a share.

In the long run, however, AT&T expects to realize a significant increase in wireless margins as its iPhone 3G customer base matures. "The iPhone short-term margin pressure is proving to be just that, it's short-term," Stephenson said.

Best Growth Area

Overall, AT&T said revenue rose 2.4 percent year over year to $31.1 billion in the fourth quarter, driven by 13.2 percent wireless growth and a 14.2 percent increase...

Thu, 29 Jan 09
New Apple Ads Highlight Convenience Apps
http://www.newsfactor.com/story.xhtml?story_id=64368
The App Store has become a place of innovation for developers who want to showcase their work while making money, a place to find amusing apps -- and a place that just might make your life easier.

Apple is featuring its most recent convenience applications in two new advertisements on its Web site called Fix and Check.

The Cupertino, Calif.-based company spotlights three applications designed to make your life run more smoothly in its Fix advertisement, and three more convenience apps in its Check ad.

It's the right time for Apple to highlight its slew of convenience applications, analysts say.

"Applications help to refresh and enhance your device, and the App Store is going strong at the moment," said Carolina Milanesi, research director at Gartner. "The iPhone has shown consumers that they can use applications to refresh and keep their device current."

Tips, Taxis and Timely Updates

The Fix ad showcases three applications that help fix problems. The Rocket Taxi app uses the iPhone location to find nearby cab companies from a list of 17,500 companies found both domestically and in other countries.

For those iPhone owners who want to measure and find just the right level, Apple has introduced the MultiLevel application, which turns an iPhone into a level with three choices of levels: A surface level, a bubble level, and an inclinometer.

Apple wanted to be sure its iPhone users know just how much to tip restaurant servers, and has included the Tipulator app, which can be used to calculate a tip and split the check with others.

Apple's Check ad focuses on a trio of applications that help users "check up" on things. Snow Reports helps track snow conditions, while Lose It is a weight-loss application developed by FitNow.

Finally, G-Park, developed by PosiMotion, helps pinpoint where you parked your car....

Thu, 29 Jan 09
Gmail Goes Offline with Google Gears
http://www.newsfactor.com/story.xhtml?story_id=64367
Gmail is going where no e-mail has gone before -- offline. Google has rolled out a new Gmail feature that lets people use its Web-based e-mail even when there is no Internet connection. It's made possible by Google Gears, a browser plug-in that comes with the search giant's Chrome browser.

"Web-based e-mail is great because you can check it from any computer, but there's one little catch: It's inherently limited by your Internet connection," wrote Andy Palay, a Gmail engineer, on the Gmail blog.

Although Internet access is becoming more ubiquitous, he noted, there are still times when Web mail can't be accessed because of an unreliable or unavailable connection. The new feature, developed by Google Labs, helps fill the void.

The Magic of Gears

Google uses Gears to download a local cache of your mail. As long as you're connected to the network, that cache is synchronized with Gmail's servers. When you lose your connection, Gmail automatically switches to offline mode and uses the data stored on your computer's hard drive instead of the information sent across the network.

"You can read messages, star and label them, and do all of the things you're used to doing while reading your Web mail online," Palay said. "Any messages you send while offline will be placed in your outbox and automatically sent the next time Gmail detects a connection."

What's more, Palay said, if you are on an unreliable or slow connection, you can choose to use "flaky connection mode." This mode relies on the local cache as if you were disconnected, but still synchronizes your mail with the server in the background.

An Innovation Whose Time Has Come

Offline Gmail has been part of Google's plans for a long time -- ever since the company introduced Google Gears back in October 2007, according to analyst...

Thu, 29 Jan 09
Amazon Ready To Debut Second-Generation Kindle
http://www.newsfactor.com/story.xhtml?story_id=64366
Attention, book fans. The evolution of the electronic reader is expected to take another step on Feb. 9, with the introduction of the next generation of Amazon's Kindle reader.

According to a report in Tuesday's New York Times, the second Kindle electronic reader will be introduced in a news conference at the Morgan Library and Museum in New York City. Amazon founder and CEO Jeff Bezos will be the host.

Photos Posted

Amazon hasn't released details of the new device, but there are reports about how the update could modify the original product.

One Web site, The Boy Genius Report, is showing what it purports to be leaked photos of the new device. If accurate, the photos and other reports indicate the angled buttons will be replaced by round ones and the side buttons will become smaller to avoid accidental turns of a page.

The new Kindle is also expected to use a new microprocessor from Epson and E-Ink, called the Broadsheet, which is already used in the competing Sony Reader 700. The chip and accompanying display technology can reportedly divide the screen into 16 pixel sets and update them in parallel for faster screen refreshes. This can be an added value if the device is used for nonbook activities, like zooming into detail in a catalog or looking up words.

Michael Gartenberg, a technology analyst, described the Kindle as "the first stand-alone e-book reader good enough to criticize." He added that Amazon "got a lot of things right" in the first generation, but its expertise is not in hardware design and the original does not provide "a perfect reading experience."

In the "things right" column, he put the fact that Amazon made it easy to get content wirelessly, the availability of a lot of content, and the low price for best-selling content compared to a...

Thu, 29 Jan 09
RIM Unveils New BlackBerry Curve 8900
http://www.newsfactor.com/story.xhtml?story_id=64353
Now that President Obama has gotten the OK from his security team for limited use of his BlackBerry, he might be taking a look at a thinner and lighter BlackBerry with a full QWERTY keyboard: The Curve 8900.

Research in Motion and T-Mobile announced Wednesday the availability of the new quad-band GSM (850/900/1800/1900-MHz) device, an update of the popular Curve model. Quad-band GSM enables connectivity around the world -- a feature that can come in handy when you're president of the United States.

Lifestyle Beyond Business

The 8900, offered with a titanium-colored finish and chrome highlights, also features built-in GPS support for turn-by-turn directions and location-based services, as well as 802.11 b/g Wi-Fi. The display -- 65,000 colors, 2.44 inches, 480x360 screen -- boasts the highest resolution ever on a BlackBerry smartphone. There's also a 512-MHz processor and a 3.2-megapixel camera with image stabilization, digital zoom, flash and video recording. A hot-swappable microSD/SDHC memory-card slot comes with a 256MB card. The 8900 can support memory cards up to 16GB.

Mark Guibert, RIM's vice president of corporate marketing, pointed to the "rich multimedia capabilities, exceptional mobile e-mail and messaging features, [and] enhanced Web browsing" of the 8900 as reasons why it supports "a busy lifestyle that spans well beyond normal business hours." He also noted that the 8900 has "easy access to social-networking communities" such as Facebook, Flickr and MySpace.

Avi Greengart, an analyst with industry research firm Current Analysis, said his reaction to the Curve 8900 was "positive." He noted that it doesn't have 3G, "but it has everything else that the BlackBerry Bold has," including both Wi-Fi and GPS, a high-resolution screen, browser enhancement, and a 3.5mm headphone jack. The 8900 supports 2.5G EDGE technology for data, making it fine for e-mail over that network, but less than optimal for the Web. It...

Thu, 29 Jan 09
Mark Papermaster Will Join Apple as IBM Suit Settled
http://www.newsfactor.com/story.xhtml?story_id=64346
IBM's lawsuit to block former Vice President Mark Papermaster from taking a position at Apple has been settled. Apple announced Papermaster will begin his new job in April as senior vice president of devices engineering, reporting directly to CEO Steve Jobs.

In October, IBM sued Papermaster, a 25-year IBM veteran, saying he breached a noncompete contract by accepting a position at Apple. Papermaster has a master's degree in electrical engineering.

At the Core

IBM listed several reasons for the suit, including protecting its intellectual property and trade secrets, and Papermaster's noncompete contract, which barred him from working for any competitor for up to one year after his IBM employment ended. Papermaster agreed that going against IBM's contract would cause irreparable harm to IBM.

Papermaster's involvement in IBM's integration and values team (IVT), a group of more than 300 senior managers, was also a basis for the lawsuit. That group is responsible for IBM's most significant and challenging issues, according to court documents.

"The confidential information to which Mr. Papermaster has become privy based on his membership in the IVT and employment with the company represents the product of IBM's substantial investment in research and innovation and is critical to IBM's competitive success," court documents said.

At the core of the litigation was Apple's acquisition of P.A. Semi. Apple was not previously considered an IBM competitor, but buying P.A. Semi last year changed that.

Analysts are speculating that the settlement between IBM and Papermaster means Papermaster agreed to respect confidentiality agreements with IBM.

"We saw what IBM's concerns were, but ... the fact that they resolved this meant that they were able to figure out and respond to confidentiality agreements," said technology analyst Michael Gartenberg.

Moving Forward

With the litigation settled, Papermaster will focus on growing Apple's iPhone and iPod businesses. His employment comes at a time when...

Thu, 29 Jan 09
Verizon Taps Internet To Extend Wireless Coverage
http://www.newsfactor.com/story.xhtml?story_id=64336
Verizon Wireless customers now have an option to improve cellular signals where they are weak. They can add a Verizon Wireless Network Extender to improve reception through the Internet.

Manufactured by Samsung, Verizon's extender is designed to bridge structural barriers to wireless coverage within a home, as well as extend the range of cell phones in remote, mountainous areas, said Jack Plating, COO of Verizon Wireless.

"Current and prospective customers have told us they want this, and we are responding to that demand," Plating said. "For those who have wanted to sign up for Verizon Wireless service but hesitated because of reception problems unique to their home location, this is the answer."

Install Requirements

The extender is a femtocell base station that connects to the Ethernet port of a broadband router. About the size of a typical wireless access point, it places mobile calls over the Internet in much the same way that PC users use VoIP for phone calls.

The device requires a minimum broadband speed of 300 Kbps to enable three Verizon handsets to simultaneously communicate with the carrier's network over the Internet. It should be installed near a window, preferably at an elevated location, and at least two feet from a wireless router.

Sporting a built-in GPS antenna, Verizon's extender accesses signals from global-positioning satellites to maintain exact network timing updates and provide E911 services with an accurate location fix when required. The device typically takes about three to five minutes to complete its start-up sequence and detect the available communications channels. However, Verizon cautions that the base station can take as long as one hour to acquire a GPS signal during the initial installation.

The extender is ready to roll once all four lights on its panel turn blue. If the GPS LED is still red after one hour, the device's...

Thu, 29 Jan 09
Despite Loss, Yahoo CEO Sees Strong Opportunities
http://www.newsfactor.com/story.xhtml?story_id=64330
Yahoo on Tuesday reported its fourth-quarter financial results. Despite an overall loss for the Internet giant, the earnings demonstrate Yahoo is coping with the economic crisis better than analysts predicted.

Revenues were $1.8 million for the quarter, a one percent decrease from $1.832 million for the same period in 2007. Analysts had estimated revenue of $1.37 billion on average, according to a Bloomberg survey. The operating loss for the quarter was $278 million, compared to operating income of $191 million for the same period in 2007.

"Despite the challenging economic environment, Yahoo delivered adjusted operating cash flow above the midpoint of guidance for the fourth quarter," said CEO Carol Bartz. "The company also made important investments while aggressively managing costs, leaving us better positioned to weather the economic downturn and emerge stronger when advertiser spending improves. We have work to do, but I am excited by Yahoo's opportunities and encouraged by the tremendous innovation and momentum I've seen since joining the company as CEO."

Drilling into the Data

Yahoo offered some bright spots in its earnings report. U.S. revenues for the fourth quarter were $1.338 million, a two percent increase compared to $1.313 million for the same period in 2007. U.S. segment revenues for all of last year were $5.190 million, a 10 percent increase compared to $4.727 million in 2007.

Yahoo also saw a two percent decline in display advertising revenue. "Given the pressures of the macroeconomic environment, we were surprised that the decline in display (advertising) wasn't greater than" two percent, Thomas Weisel Partners analyst Christa Quarles said in a note.

Yahoo CFO Blake Jorgensen said the company is encouraged by the 2008 results. "Yahoo's aggressive cost management and strong balance sheet helped us navigate this unprecedented economic environment," he said. "The cost-reduction initiatives and investments we made in 2008 have positioned us well...

Thu, 29 Jan 09
Cybercrime Experts Keep Close Watch on Internet Worm
http://www.newsfactor.com/story.xhtml?story_id=64322
The world's top virus hunters are watching every move made by the attacker in control of a nasty new Internet worm -- referred to as "downadup" or "conficker."

What worries them most is that the person, or group, controlling the worm could at any time direct the PCs to carry out criminal activities on an unprecedented scale. And there's not much anyone can do to stop them.

The attackers could use the infected PCs to steal data, spread spam or commit other routine cybercrimes.

"We have a lot of people looking at this, and with everybody watching it, hopefully they will be too scared to do anything," says Patrik Runald, security adviser at F-Secure. "That's really the only thing we can hope for."

In less than three weeks, the worm has spread to more than 1 million PCs around the globe, mostly inside companies, according to estimates from F-Secure and Atlanta-based security firm SecureWorks. A worm of that magnitude has not been seen since 2004.

The worm takes advantage of a security hole that exists on hundreds of millions of Windows PCs. Microsoft issued an emergency patch for the hole in October. Because most Windows PCs connected to the Internet were vulnerable without the patch, the security community went on high alert.

The worm first appeared on Jan. 7. Tech security researchers say it probed for and implanted itself on any unpatched Windows PC. It then scanned for, broke into and infected all nearby computer servers. It also implanted itself onto any portable device plugged into the PCs' USB inputs, such as a thumb drive storage stick, an iPod or a digital camera. When the corrupted device was plugged into another computer, that machine became infected -- and began searching for other PCs to infect.

Don Jackson, senior researcher at SecureWorks, says infections have been spreading in...

Thu, 29 Jan 09
For Recession Help, an IT Innovation Tax Credit
http://www.newsfactor.com/story.xhtml?story_id=64317
Venture capitalist Geoffrey Moore has no doubts about what puts the U.S. ahead of so many other lands. "The crown jewel in our economy," says Moore, author of management and innovation-themed books such as Dealing with Darwin: How Great Companies Innovate at Every Stage of Their Evolution, "is our ability to lead innovation."

It's a comforting image. But it also seems a touch out of date. Retail sales dropped 2.7 percent in the U.S. in December. The unemployment rate stands at 7.2 percent, with 3.6 million people tossed out of work in the past year. Home foreclosures jumped 81 percent in 2008. Clearly, President Barack Obama and his team have their work cut out to help the U.S. regain its glory.

That's why Moore, a partner at Mohr Davidow Ventures, and other Silicon Valley veterans, such as Genius.com Chief Executive David Thompson and Kevin Efrusy of Accel Partners, are pushing for an IT innovation tax credit. Their open letter, dated Jan. 7, was sent to then President-elect Barack Obama, Speaker of the House Nancy Pelosi, and other Washington pols. This temporary break -- proposed for two years initially, with an option to extend it for four more years should an economic recovery prove elusive -- would reward companies that invest in IT. Any business spending at least 80 percent of its 2008 annual IT budget would qualify for the 25 percent credit, providing an incentive for executives to keep buying both hardware and software.

"People talk about infrastructure, but then they build a bridge to nowhere," says Thompson, who had been chief marketing officer at Web-conferencing outfit WebEx before founding Genius.com, a B-to-B marketing site, in 2005. "Too often people don't take the next step to assess how [that infrastructure] actually helps you innovate, become more productive, and actually generate more revenue and...

Thu, 29 Jan 09
A New Austerity Makes Technology Giants Tremble
http://www.newsfactor.com/story.xhtml?story_id=64293
The global credit crisis may have caused the decline in consumer and business spending that is assaulting the giants of technology. But as the dominant companies try to emerge from this slump, they may find themselves blaming people like David Title just as much as they blame Wall Street.

Title, 35, a new-media manager at a film production company in New York, has dropped his cable TV subscription and moved to watching most of his television online -- free. While shopping for a new laptop for his girlfriend recently, he sidestepped more expensive full-featured computers and picked a bare-bones, $200 Asus EeePC laptop, also known as a netbook, made by Asustek of Taiwan.

"We've reached one of those moments in tech history when there are low-priced and free alternatives that are both user-friendly and reliable enough to make the switch," Title said. "Then there's the extra bonus of saving some cash."

Silicon Valley -- and technology centers elsewhere, like Taiwan -- have been gripped by a growing sense that the economic retreat might do more than depress earnings.

There is too much ingrained optimism here to think that the technology sector will not bounce back, stronger than before. But the fear is that consumers like Title, and businesses operating with the same cost-cutting mind-set, will erode the high-margin businesses of the information technology industry -- slowing some technologies and companies but giving new momentum to others.

The normally confident Steven Ballmer, chief executive of Microsoft, expressed this very fear last week after announcing the company's first big reduction of its work force. "Our model is not for a quick rebound," he said. "Our model is, things go down, and then they reset. The economy shrinks."

This has happened before. The dot-com bust earlier in the decade dragged down highfliers like Sun Microsystems and America Online but...

Wed, 28 Jan 09
Apple Approves Stripped-Down App, Updates iPhone
http://www.newsfactor.com/story.xhtml?story_id=64329
Apple has approved a stripped-down version of Podcaster, an App Store application that was denied approval last year, and has released an update for the iPhone and iPhone 3G. The original Podcaster competed with Apple's iTunes.

Podcaster allowed users to stream video and audio podcasts to an iPhone or iPod touch without having to sync with iTunes. Now a version of Podcaster called RssPlayer has been approved.

Alex Sokirynsky, creator of Podcaster and RssPlayer, said that after Podcaster was not approved by Apple, an inferior application developed by someone else was accepted. "I tried to use it, but it was not that good, [and] it made me want to remake the app into RssPlayer," Sokirynsky said. "Maybe Apple wanted to release its own implementation before it accepted anyone else's."

Better the Second Time

RssPlayer is designed to play audio files attached to RSS feeds. To use the app, a user enters the feed URL. The app will show the 10 most current items, according to Sokirynsky, then automatically download the first item. "It is a simple and elegant way to listen to a netcast," he said.

"Several features are missing," Sokirynsky said. "The podcast directory is gone. The look of the screen that plays the netcast is different -- before it looked very similar to Apple's own app ... the underlying code has been changed to be more stable, and I also follow Apple's human-interface guidelines much closer."

RssPlayer has more features than Podcaster. For example, the app remembers the play position of a streamed or downloaded audiocast and will return there after the application has been closed.

Sokirynsky said he plans to keep improving the application and adding features in future releases.

So far the developer has had a great response from users. "I am very happy that Apple has approved my app," Sokirynsky said....

Wed, 28 Jan 09
New Cisco Nexus Products Aid Data-Center Changes
http://www.newsfactor.com/story.xhtml?story_id=64328
Cisco Systems has rolled out three new members of its Nexus family for deployment in next-generation data centers. The Nexus 7018 and Nexus 5010 switches -- together with Cisco's Nexus 2000 Fabric Extender -- promise to enable IT departments to accommodate changes such as virtualization, Web 2.0 applications, and cloud computing.

The latest Nexus technology supports virtualization in the data-center infrastructure, said Ed Bugnion, CTO of Cisco's server and virtualization unit. "Today, the architectural shift in the data center marks an IT market transition that will drive the benefits of virtualization to an entirely new level," Bugnion said.

'Not Done Yet'

Cisco's Nexus family can transform data centers into a unified infrastructure that reduces the number of adapters, cuts costs, lowers power consumption, and reduces the carbon footprint. Launched in January 2008, Cisco's Nexus 7000 series introduced support for end-to-end data-center connectivity by consolidating IP, storage and interprocess communication networks onto a single Ethernet fabric.

In the past year, Cisco has continued to flesh out the Nexus portfolio, established NX-OS as the company's pervasive data-center OS, and implemented several key technologies, including VN-Link, Data Center Ethernet, and Fibre Channel over Ethernet (FCoE), said Omar Sultan, Cisco's solution manager for data-center switching. "But we are not done yet," he said.

Cisco has just introduced the Nexus 7018 -- a modular switch that the company reports is capable of delivering continuous system operation and virtualized, pervasive services. Designed to meet the demands of even the largest data centers, the Nexus 7018 features an 18-slot chassis that provides up to 16 I/O module slots, Sultan said.

"For those of you wondering, that gives you 768 ports of Gigabit Ethernet or 512 ports of 10-Gigabit Ethernet in a physical chassis that can still be segmented into up to four virtual switches," Sultan said. "We have also added...

Wed, 28 Jan 09
Senate Approves DTV-Transition Delay
http://www.newsfactor.com/story.xhtml?story_id=64327
Despite the campaign by the National Association of Broadcasters to prepare television viewers for the Feb. 17 switch from analog to digital broadcasting, the U.S. Senate Monday unanimously voted to approve delaying the DTV switch until June -- an effort that President Obama and his administration have been pushing since before Obama took office.

Now that the measure has been approved by the Senate, it needs to be approved by the House of Representatives. The House is expected to vote next week in favor of the switch moving to June 12.

Those in favor of the delay say four months will give the Federal Communications Commission more time to prepare for the switch by providing replacement coupons for converter boxes, preparing call centers to handle calls from the 1.5 million people who use analog service, and offering more education on the misconceptions about the switch.

"Calling centers at the Department of Commerce and Federal Communications Commission are ill-equipped to deal with the avalanche of calls that are expected on Feb. 17 and the days and weeks after," Sen. John (Jay) Rockefeller, the delay bill's cosponsor, told Congress.

Following the Law

The FCC expects to handle up to two million agent-assisted calls during the week of the DTV transition, including up to 400,000 calls the day following the Feb. 17 switch. In order to handle the calls, the FCC has tapped IBM to provide the call-center support under a $12 million contract. The FCC has $20 million in appropriated funds for the effort.

States with high populations of analog users fear the transition will leave those who do not have a converter box without the Emergency Alert System, which broadcasts messages to homes in case of an emergency, and Amber Alerts, which alert the public when a child has been abducted. In Minnesota, where...

Wed, 28 Jan 09
Post-McColo, Spam Is Back with a Vengeance
http://www.newsfactor.com/story.xhtml?story_id=64326
The e-mail-using world rejoiced in November when the McColo network was busted and spam levels dropped 70 percent. But spam levels are now back up 150 percent, according to Postini Message Security.

What does that mean? Spammers are recovering, and it's likely that total spam volumes will return to pre-McColo levels within just a few months.

"As spammers fill the void left by McColo, it's reasonable to anticipate a decreasing rate of growth as spam reaches November 2008 levels," wrote Amanda Kleha of the Google message-security team on the company's blog. "However, since the November levels weren't even the peak for the year, and since spammers appear to be quickly recovering, the question remains: Where will spam volume top out in 2009? Will it be near the November 2008 level? The April 2008 level? Or higher?"

Ever-Increasing Spam

Kleha suggested that one way to answer that question is by comparing 2008 overall levels with previous years. Spam threats rose visibly during the year, reflecting the overall trend of rising attacks. Even with the drop in November, spam levels climbed 25 percent over 2007.

"Our statistics show that the average unprotected user would have received 45,000 spam messages in 2008, up from 36,000 in 2007," Kleha said. "All indicators suggest this trend will continue as virus, malware and link-based attacks become both more frequent and more ingenious."

Looking ahead to the rest of 2009, Google expects viruses sent via e-mail and in blended attacks -- e-mail and Web -- to continue to be a serious threat. During the second half of 2008, virus volume increased sixfold from the first half of the year. Google warned that we can also expect viruses and malware to continue to be a key tool and area of focus for spammers to upgrade their platforms.

"Of course, the only thing we...

Wed, 28 Jan 09
IE8 Release Candidate 1 Has New Security Features
http://www.newsfactor.com/story.xhtml?story_id=64321
Even as the tech world continues to test Windows 7 beta -- and compare it to Vista -- Microsoft has released Internet Explorer 8 Release Candidate 1 (RC1).

Much has changed since the second beta version of Microsoft's Internet browser. The browser is complete with reliability, performance and compatibility improvements, and there are new security features.

Microsoft said the technical community should expect the final IE8 release to behave as RC1 does. That means IE8 is effectively complete, but the company will continue to review feedback on critical issues.

Reviewing the Changes

On the reliability, performance and compatibility front, Microsoft studied feedback and addressed several issues. The company also worked closely with the security community on clickjacking protection.

According to Dean Hachamovitch, a general manager at Microsoft, Web sites can now protect themselves and their users from clickjacking attacks "out of the box," without impacting compatibility or requiring browser add-ons.

Microsoft also made some changes to the InPrivate feature and the user experience based on feedback. For example, based on data about how people use actually the browser, Microsoft made fitting more items on the Favorites bar easier.

"IE8 focused on how people really use the Web. Consumers want a browser that makes the tasks they do every day faster and easier. The activities people spend their time on define real-world performance: Navigating to Web sites, working with tabs, searching, keeping track of changing information (like traffic or an auction), and using the information from one site with another (as in getting a map)," Hachamovitch said.

"Everyone wants a trustworthy browser that keeps them in control and protects their safety," he said. "Developers want great developer tools, great interoperability, and a powerful platform that enables them to innovate. For some people, accessibility is crucial; for some organizations, policy, administration and deployment are essential."

A...

Wed, 28 Jan 09
Wireless Growth Boosts Verizon Earnings 15 Percent
http://www.newsfactor.com/story.xhtml?story_id=64320
While Sprint is slashing jobs, Verizon Communications has reported a strong fourth quarter with more growth ahead. On Tuesday, Verizon reported a 15 percent increase in earnings for the quarter, proving the economic downturn has not stymied the market for wireless devices and services.

Verizon earned $12.4 billion, or 43 cents a share, up from $10.7 billion, or 37 cents per share, in the year-ago period. Earnings were 61 cents per share after job cuts, in line with analyst expectations. Revenues rose 3.4 percent over the year-ago period, totaling $24.6 billion. Analysts had predicted $24.74 billion.

"Verizon has shown that it is able to compete effectively in this economic environment," said Chairman and CEO Ivan Seidenberg. "We grew profits and maintained strong cash flows throughout 2008. In the fourth quarter, we continued to produce top-line growth, fueled by strong sales volumes for broadband, wireless and strategic business services."

A Growing Customer Base

Verizon also grew its customer base. The nation's second-largest communications provider added 1.4 million customers, almost all retail. In all, Verizon boasts 72.1 million customers, a 9.9 percent increase. That figure doesn't include the customers Verizon acquired when it purchased Alltel. Counting Alltel subscribers, Verizon Wireless now serves more than 80 million customers.

Verizon Wireless continued to have low churn -- 1.35 percent among all customers, and 1.05 percent among the company's retail post-paid customers. Verizon also reported an 8.4 percent increase in revenue from strategic business services.

"The Verizon story in 2008 was one of customer growth and product innovation, based on the strategic technology and broadband infrastructure investments we have made year after year," Seidenberg said. "We have built a solid foundation to continue to create value for our customers and shareholders in 2009 and beyond."

Infrastructure Is Important

The one area where revenue shrank for Verizon was on the landline side. Verizon...

Wed, 28 Jan 09
Cisco Aims To Cut Energy Costs with Network Controls
http://www.newsfactor.com/story.xhtml?story_id=64319
Cisco Systems has taken the wraps off a new technology enabling companies to dramatically reduce greenhouse gas emissions. Called Cisco EnergyWise, the innovative architecture encompasses a network-based approach for measuring, mapping, reporting and reducing the energy consumption of both Cisco and non-Cisco Internet Protocol devices.

According to Cisco CEO John Chambers, EnergyWise is aimed at helping individuals, companies and even entire countries to become more energy efficient. "It's about how to be responsible and use the resources we have on this planet in a way that allows us to achieve both our business goals and our society goals," Chambers said.

The Power of Numbers

EnergyWise employs a unique domain-naming system to measure and summarize information about all the devices attached to a network -- including device type, physical location, and power consumption, said Senior Software Development Manager Mala Devlin. Once armed with "a deep and meaningful view of device power consumption and behavior," the network can reduce the power consumption of individual devices by "applying static or dynamic business policies, making network management less complicated and more scalable," Devlin said.

For example, a management station can ask the EnergyWise network to summarize the power of desktop IP phones within a single building, Devlin said. "EnergyWise understands which devices are IP phones, where they reside at, and which ones are designated with the desktop label," she said.

Enabled networks will be able to command high-priority end points to maintain their full capability. Moreover, lower-priority end points can be programmed for a reduction in power -- or even a temporary shutdown -- during off hours, Devlin said.

The establishment of specific power-consumption policies based on clearly quantified goals -- together with the network's ability to recommend changes -- will help companies fulfill their cost-saving strategies, Chambers said. "It's amazing that when you put numerical goals in...

Wed, 28 Jan 09
iPhone Touch Patent Gives Apple Clout Against Rivals
http://www.newsfactor.com/story.xhtml?story_id=64292
During an earnings call last week, Apple COO and acting CEO Tim Cook told financial analysts that Apple would not tolerate other companies infringing on its intellectual property for the iPhone. Now it turns out that Apple has a major weapon in its defensive arsenal -- a U.S. patent awarded shortly before Cook's comments.

At the time of the call, the context of Cook's remarks led most observers to assume that he was referring to Palm's new iPhone competitor, the Pre. But the new patent raises questions about whether Apple's target for potential infringers is much larger.

'One or More Finger Contacts'

Patent Number 7,479,949 runs more than 350 pages. Its title -- Touch screen device, method, and graphical user interface for determining commands by applying heuristics -- covers a variety of user-interface techniques relating to touch commands. The touch commands cover "one or more finger contacts" used for scrolling, a "two-dimensional screen translation command," or a command for displaying items in a set, among other things.

Signed by Apple cofounder and CEO Steve Jobs and more than a dozen other Apple employees, the patent covers such data-display gestures as pinch-to-zoom Web browsing and swipe-to-scroll.

In addition to whether Apple intends to sue Palm or others based on this patent, there is also the question of whether the patent will have a chilling effect on the rapidly innovating smartphone industry.

Several companies that could be litigation targets have been positioning themselves. In the now-famous earnings call, Cook tempered his remarks by saying they were meant generally, rather than pointed at Palm. But Palm apparently thought Cook's remarks were directed at it, and a Palm spokesperson responded that the company is ready to legally defend its innovations if necessary.

Prior Art?

Microsoft, which uses multi-touch technology such as in its Surface interactive tables, has laid the groundwork to claim...

Wed, 28 Jan 09
Choppy Market as Google Lifts Tech
http://www.newsfactor.com/story.xhtml?story_id=64285
Another gloomy week for stock markets turned mixed Friday, with technology companies gaining ground as the rest of the market tried to fight its way back.

In afternoon trading, the Dow Jones industrial average had trimmed its early losses and was down 25 points while the broader Standard & Poor's 500-stock index was slightly higher. The Nasdaq composite index was up 1.3 percent, aided by Google, operator of the most popular Internet search engine, which jumped about 6 percent after reporting better than expected earnings after the market closed Thursday.

The upturn in stocks happened after a Senate committee announced parts of its stimulus plan and President Barack Obama pushed congressional leaders to reach a consensus on the $825 billion spending package.

Despite a litany of troubling corporate earnings reports and signs of deteriorating investor confidence, some analysts see an end to the carnage.

"We're not at a bottom, but we're in the bottoming process," said Anthony Contry, head equity trader at BNY ConvergEx Group. "A lot of people look for that V-shaped bottom, but that's not what we're going to see. As we get some clarity in earnings, things are going to continue to get better."

Stocks were poised to finish their third week in the red, wiping away any lingering optimism that greeted the start of 2009. The major indexes, which fell by a third or more in 2008, are down about 8 percent since the year's start as concerns grow about the breadth of the year-long recession.

"It's not a good omen," said Bruce Bittles, chief investment strategist at Robert W. Baird. "It was felt that with last year's declines, the market had really discounted a lot of bad news. And yet, the last three weeks we get bad news and the market goes down. It doesn't react very well to good...

Wed, 28 Jan 09
Global Online College Would Be Tuition-Free
http://www.newsfactor.com/story.xhtml?story_id=64278
An Israeli entrepreneur with decades of experience in international education plans to start the first global, tuition-free Internet university, a nonprofit venture he has named the University of the People.

"The idea is to take social networking and apply it to academia," said Shai Reshef, an entrepreneur and founder of several previous Internet-based educational businesses. "The open source courseware is there, from universities that have put their courses online, available to the public, free. We know that online peer-to-peer teaching works. Putting it all together, we can make a free university for students all over the world, anyone who speaks English and has an Internet connection."

Online learning is growing in many different contexts. Through the Open Courseware Consortium, started by the Massachusetts Institute of Technology in 2001, universities around the world have posted materials for thousands of courses -- as widely varied as Utah State University's "Lambing and Sheep Management" and MIT's "Relativistic Quantum Field Theory" -- all free to the public. Many universities now post their lectures on the iTunes music store.

For-profit universities like the University of Phoenix and Kaplan University have extensive online offerings. And increasingly, both public universities, like the University of Illinois, and private ones, like Stanford, offer at least some classes online.

Outside the United States, too, online learning is booming: Open University in Britain, for example, enrolls about 160,000 undergraduates in distance-learning courses.

The University of the People, like other Internet-based universities, would have online study communities, weekly discussion topics, homework assignments and exams. But in lieu of tuition, students would pay only nominal fees for enrollment ($15 to $50) and for exams ($10 to $100), with students from poorer countries paying the lower fees.

Experts in online education say it is an interesting idea, but one that raises many questions.

"We've chatted about doing something like this,...

Wed, 28 Jan 09
Advertising Messages at $100,000 a Second
http://www.newsfactor.com/story.xhtml?story_id=64276
Marketers that advertise during the Super Bowl, the championship game of American football, are always seeking more bang for their buck.

This year, with each 30-second commercial during the game estimated to cost a record $3 million -- yes, $100,000 a second -- and the recession threatening to dampen viewer enthusiasm, the sponsors are intensifying efforts to amplify the force of what they plan for Super Bowl XLIII.

"Especially in this economy, people are saying, 'I'd better get my money's worth,'" said Andrew Graff, chief executive of Allen & Gerritsen, a marketing firm.

So a first-time Super Bowl advertiser, General Electric, intends to make its commercial the springboard for an elaborate campaign -- in print and online as well as on TV -- focused on innovative ideas in areas like energy and the environment.

The campaign promotes GE products like Smart Grid energy technology as "innovation you don't have to wait for" rather than far-off fantasies. The various aspects of the campaign, including digital holograms, online films and a special Web site, are all scheduled to go live Sunday, when the Super Bowl takes place in Tampa, Florida.

A returning sponsor, Coca-Cola, is using the Super Bowl to help introduce an "Open happiness" campaign for its flagship soft drink. The campaign will be supplemented by everything from short spots on "American Idol" to bottles of Coke at lower, recession-friendlier prices. In addition to two commercials during the game for Coca-Cola Classic, there will be a Coke Zero spot.

Another returning advertiser, E*Trade, is surrounding its Super Bowl spot with a variety of Internet initiatives, including some that will begin on Facebook and YouTube (youtube.com/etrade) on Friday and on Twitter early next week.

The E*Trade commercial will bring back a character from two popular spots the company ran in the game last year, a talking baby wise beyond...

Wed, 28 Jan 09
Verizon Offers $250 In-Home Cell-Phone Booster
http://www.newsfactor.com/story.xhtml?story_id=64274
Verizon Wireless has started selling a book-sized device that boosts cell phone signals within a home for $250, making it easier for people to drop a home phone line and rely solely on wireless.

The Verizon Wireless Network Extender needs to be connected to a broadband Internet line. Then it acts a miniature cellular tower, listening for signals from a subscriber's cell phone. It covers up to 5,000 square feet, the company said Monday.

Such devices are known as "femtocells." Verizon Wireless, the country's largest carrier, is following in the footsteps of Sprint Nextel Corp., which started selling a femtocell under the Airave brand nationwide last year.

The Airave costs $100, but Sprint charges an extra $5 per month for use. Verizon Wireless is not charging a monthly fee.

AT&T Inc. is testing femtocells in employees' homes, and plans to conduct customer trials in at least one market in the second quarter, spokesman Mark Siegel said.

The Verizon Wireless and Sprint femtocells are made by Samsung Electronics Co. and relay voice and low-speed data connections. The AT&T unit will also relay fast "3G" data connections.

T-Mobile USA has chosen a different technological route to expand indoor coverage. It sells Wi-Fi routers and phones that can place calls over Wi-Fi in addition to regular wireless calls.

Verizon Wireless is a joint venture of Verizon Communications Inc. of New York and Vodafone Group PLC of Britain.

Tue, 27 Jan 09
Hewlett-Packard Launches ProCurve Alliance
http://www.newsfactor.com/story.xhtml?story_id=64291
In a move to counter Cisco's planned entrance into the data center, Hewlett-Packard is forming alliances, launching new products and authoring new initiatives. It's a three-pronged strategy that HP hopes will help the company and its partners gain more market share in a competitive arena.

For starters, HP ProCurve, the networking division of HP, on Monday expanded its Adaptive Networks vision -- a vision that sees networks adapt to users, applications and organizations' needs.

Additionally, two new initiatives will make way for customers to address rapidly changing enterprise data-center needs and improve network-application efficiency. HP ProCurve also unveiled data-center switches and management software to help customers lower costs, mitigate risks, and drive business growth.

But what got analysts' attention is strong industry support for the HP ProCurve Open Network Ecosystem, also known as HP ProCurve ONE. It's a multi-vendor alliance program that aims to optimize the performance of enterprise-class applications with HP ProCurve infrastructure.

A Unified Front

Microsoft, Avaya, McAfee, F5 and Riverbed, Aastra, AirTight Networks, Ekahau, InMon, .vantronix and VBrick are participating in the partnership, collaborating with HP ProCurve to help customers strengthen security, reduce complexity of network management, increase network and data-center performance, deploy new VoIP services, and improve manageability.

"To help customers address the increased pace of change within their businesses, HP ProCurve is combining its own technology with some of the most innovative, respected and visionary companies in the world," said Marius Haas, senior vice president and general manager of HP ProCurve. "Establishing partnerships with major technology companies to deliver open-standards choices delivers business value by increasing the efficiency of network applications."

The goal of HP ProCurve ONE is to allow customers to securely integrate a wide choice of network applications and services from alliance partners that work directly with the HP ProCurve infrastructure. HP ProCurve ONE partner applications are tested and...

Tue, 27 Jan 09
Another Trojan Horse Stalks Mac Software Pirates
http://www.newsfactor.com/story.xhtml?story_id=64290
In less than a week, two different forms of Trojan horses have invaded Macs whose users downloaded pirated copies of first Apple iWork 09 and now Adobe Photoshop CS4.

As of Monday morning, 21,000 people had downloaded the first Trojan horse in a pirated copy of iWork, according to Intego, a UK-based developer of privacy and security software for the Mac. The second Trojan horse in a pirated copy of Photoshop had been downloaded 5,000 times.

"If we extrapolate the total number, it is twice that," said Peter James, a spokesperson for Intego. The company is warning Mac users to avoid downloading pirated software.

Security analyst Jose Nazario of Arbor Networks advised, "Pay for your software. It is not antivirus, it is not patch. There is no vulnerability other than your gullibility."

Backdoor Installed

The Photoshop exploit, OSX.Trojan.iServices.B Trojan Horse, considered a serious threat, is found in pirated software distributed through BitTorrent trackers and other sites with links to pirated software. The virus is bundled with copies of Adobe Photoshop CS4 for Macs through an application that serializes the program.

Users who download the pirated software will first run a crack application that installs a backdoor director. Once installed, the malware sends an alert to the creator, which can then connect to the infected Mac and take control.

Because the Trojan horse creates a new attack with a different name, it's more difficult to remove.

"The software installed could do a whole lot of stuff and can be downloading new or totally different software, and leaves open the possibility of keystroke loggers," James said.

"Basically it forces computers to join a peer-to-peer botnet," Nazario said. "If they want to install DDOS agent, which is one of the things they can do with a botnet -- they can do that."

And they have, according to James, who said his...

Tue, 27 Jan 09
Buggy BlackBerry Storm Draws Ire of Early Adopters
http://www.newsfactor.com/story.xhtml?story_id=64289
The BlackBerry Storm was supposed to be the proverbial iPhone killer ... or at least it was supposed to give BlackBerry users another reason not to ditch their faithful mobile device for a shiny new Apple iPhone.

Something went wrong. Instead of the BlackBerry Storm becoming an iPhone killer, it appears that it may be a BlackBerry killer -- at least for some customers who are irate about their experience with the new model, calling the touchscreen software sluggish and the performance of basic tasks slow and buggy.

According to a report in The Wall Street Journal, investors will be looking for clues on how the Storm fared when Verizon releases its fourth-quarter results Tuesday. Verizon Wireless is the exclusive U.S. carrier for the device.

Calm Before the Storm

Consider the hype. BlackBerry launched a marketing campaign that reportedly cost more than $100 million. Marketing raised awareness -- the company reportedly sold about 500,000 units from Nov. 21 to Dec. 21 -- but the buggy software and glitchy hardware are drawing the ire of the folks who purchased the Storm.

Despite the promising initial sales numbers, there were signs that the launch would be problematic before its debut in the form of rumors about a security flaw, but hundreds of thousands of consumers clamored to get their hands on the latest model anyway.

But perhaps the BlackBerry Storm's issues are a non-issue. "Did they expect a perfect device?" asked Mike Disabato, a senior analyst at the Burton Group. "If they were expecting perfection out of BlackBerry on this one, they were sorely mistaken. There will be performance issues. That's normal with complex devices like this. We saw similar complaints about the iPhone and the Android phone."

Reviewing the Promise

The Storm was designed to appeal to both consumers and businesses. It combines the communications features, global connectivity,...

Tue, 27 Jan 09
Sprint Nextel Will Slash 8,000 Jobs To Save $1.2 Billion
http://www.newsfactor.com/story.xhtml?story_id=64288
Sprint Nextel on Monday announced plans to lay off about 8,000 employees by the end of the first quarter. The move is expected to reduce labor costs $1.2 billion a year.

The job cuts span all levels of the company in various geographic locations and include about 800 positions Sprint expects to be eliminated under a voluntary separation plan launched late last year. The cuts come at a short-term cost as Sprint said it expects to spend $300 million in the first quarter for severance and related costs.

"Labor reductions are always the most difficult action to take, but many companies are finding it necessary in this environment," said Sprint CEO Dan Hesse. "We continue to improve the customer experience, and these improvements are reflected in much higher levels of satisfaction in customer surveys and in independent performance tests. Our commitment to quality will not change."

Staying Competitive in a Recession

Sprint stressed that it is committed to maintaining high standards of customer service, so cuts in its customer-care department will be fewer than in other areas. Sprint serves about 51 million customers.

However, the remaining employees will see fewer benefits. Following the lead of other companies, Sprint's cost reductions suspend the 401(k) match for 2009, extend a 2008 suspension of salary increases through 2009, and suspend its tuition-reimbursement program for 2009.

Sprint said its job cuts are part of a move to breed a more competitive cost structure and remain financially secure in a "challenging economic environment."

Positioned for the Storm

Sprint's near-immediate layoffs are a preface to the company's fourth-quarter earnings release on Feb. 19. Other technology companies have made similar moves, either just before or just after their earnings announcements, including Microsoft and Intel.

"Sprint has seen a lot of churn," said Mike Disabato, a senior analyst at the Burton Group. "AT&T took a lot...

Tue, 27 Jan 09
Apple Ready To Release iLife '09 with New Features
http://www.newsfactor.com/story.xhtml?story_id=64287
Apple has made good on Vice President Philip Schiller's promise at Macworld to release iLife 'O9 this month. Beginning Tuesday, all new Macs will have an upgraded version of iLife '09 with iPhoto, iMovie and GarageBand. The software suite is for Mac OS X 10.5.6 or later.

For those who already have a Mac, Apple is making iLife available through the online Apple Store, in its retail stores, and through authorized resellers.

iLife is one of the main reasons customers purchase a Mac over any other personal computer, Apple CEO Steve Jobs said when iLife '09 was announced.

iLife '09 costs $79 for a single license, but a five-computer family pack is priced at $99. Apple is also making the suite available with the Mac Box Set along with iWork '09 and Mac OS X Leopard for $169.

Photos and Movies

The latest version of iLife is loaded with high-tech features.

iPhoto, which allows users to view, edit and store digital photos, now can organize photos with face detection. The feature, called Face, allows a user to easily search for a photo using geo-tagging technologies. It posts family and friend photos on a digital bulletin board for easier viewing.

iPhoto also can create themed slide shows. Apple added a social-networking element to iLife '09, and users can upload photos to Facebook.

iMovie, a video editor, includes a new precision editor, video stabilization, drag and drop, and animated travel maps.

Jamming

For those who enjoy jamming with Garage Band, a music-creation and podcasting application, Apple has added 18 basic guitar and piano music lessons.

Additionally, users have an option to get lessons from the experts, including Sting, Norah Jones, and Fall Out Boy at the GarageBand Lesson Store for $4.99 per lesson. Users who buy a lesson also get a little inspiration from the artists, who explain...

Tue, 27 Jan 09
Computer Worm Identified, but Motive Is a Mystery
http://www.newsfactor.com/story.xhtml?story_id=64283
A new digital plague has hit the Internet, infecting millions of personal and business computers in what seems to be the first step of a multistage attack. The world's leading computer security experts do not yet know who programmed the infection, or what the next stage will be.

In recent weeks a worm, a malicious software program, has swept through corporate, educational and public computer networks around the world. Known as Conficker or Downadup, it is spread by a recently discovered Microsoft Windows vulnerability, by guessing network passwords and by hand-carried consumer gadgets like USB keys.

Experts say it is the worst infection since the Slammer worm exploded through the Internet in January 2003, and it may have infected as many as nine million personal computers around the world.

Worms like Conficker not only ricochet around the Internet at lightning speed, they harness infected computers into unified systems called botnets, which can then accept programming instructions from their clandestine masters.

"If you're looking for a digital Pearl Harbor, we now have the Japanese ships steaming toward us," said Rick Wesson, chief executive of Support Intelligence, a computer security consulting company based in San Francisco.

Many computer users may not notice that their machines have been infected, and computer security researchers said they were waiting for the instructions to materialize, to determine what effects the botnet will have on PC users. It might operate in the background, using the infected computer to send spam or infect other computers, or it might steal the PC user's personal information.

"I don't know why people aren't more afraid of these programs," said Merrick Furst, a computer scientist at Georgia Tech in Atlanta. "This is like having a mole in your organization that can do things like send out any information it finds on machines it infects."

Microsoft rushed an emergency patch...

Tue, 27 Jan 09
New AMD Opteron Processors Target Data Centers
http://www.newsfactor.com/story.xhtml?story_id=64266
Advanced Micro Devices has rolled out five new quad-core Opteron HE processors designed to meet the industry's rising demand for low-power data-center technology. Additionally, the chipmaker has just launched two new quad-core Opteron SE processors targeting data centers with performance-intensive workloads.

In the current economic environment, data-center managers are under more pressure than ever to reduce costs without having to compromise on the latest features or performance, noted Patrick Patla, general manager of AMD's server and workstation business.

"The new quad-core AMD Opteron HE series processor offers unrivaled performance per watt and cost efficiencies for a wide range of configurations without a potential front-side-bus bottleneck," Patla said.

Lower Idle Power

Featuring clock speeds from 2.1 to 2.3 GHz, AMD's Opteron HE processors address the business computing market's need to maximize performance during peak periods while managing energy costs during idle and low-utilization hours. Server platforms based on the new 45nm chips can offer up to 20 percent lower idle power compared to similarly configured systems from rival chipmakers, AMD said.

Opteron HE chips are available now in server offerings from Dell, Hewlett-Packard, Rackable Systems, and Sun Microsystems. Moreover, AMD's 2.8-GHz Opteron SE processors are available in three new systems from HP as well as from other AMD technology partners.

Opteron HE processors aim to improve data-center energy efficiencies while AMD's 45nm Opteron SE chips are designed for the highest raw-computing environments, said John Fruehe, AMD's director of business development for server/workstation products.

"We are even bringing a new feature to the market called AMD PowerCap manager that will allow IT data-center managers to set predefined maximum limits for the processor's clock speed and voltage," Fruehe said. "Because many workloads tend to be spiky in nature, the need to run at the highest clock speed is often only for a cycle or two."

Smoothing...

Tue, 27 Jan 09
Hosted/SaaS vs. On-Premise Systems
http://www.newsfactor.com/story.xhtml?story_id=64251
In these days of scary economic news (and 2009 budget planning that often reflects that uncertainty), many contact centers are considering a question that has been bubbling under the surface for a couple of years now. That is: Is it a good idea to offload some of the technological infrastructure to a hosted provider? Every contact center is unique, so there are no set rules that govern the answer to that question. The issues that bear on that decision reflect corporate culture, budgets, internal purchasing dynamics and specific technology needs.

To make matters more complex, what we define as a "hosted" solution can take several forms, each with its own distinct pros and cons. And the range of technologies that it's feasible to offload has expanded -- it is possible to move almost everything from switching to CRM to some forms of workforce optimization into the cloud. Should you? That depends.

Factoring the Decision

The answers to all of these questions can be found by isolating and weighing some of the distinct factors that bear on your particular situation. Each contact center is a unique and beautiful snowflake; what makes sense in one case may be completely off-base in another. Here are some of the variables that you need to come to terms with.

The time horizon. This is perhaps the most important element to contend with, and is tied up with the question of which specific tool you are looking to acquire. For example, say you are at facing the end of life for your switch and are weighing different options for your routing fabric. It will be important to consider future growth scenarios in call volume, in customer expectations, in agent headcount -- all of these things change the calculation of total cost of ownership of a system. Will you be...

Tue, 27 Jan 09
Review: Eos Wireless Speaker System Misses a Beat
http://www.newsfactor.com/story.xhtml?story_id=64245
One of my favorite electronics purchases over the last five years continues to be the Sonos wireless music system that delivers digital music throughout the home. It's easy to set up and use, and the company continually enhances your purchase with often-free software updates delivered over the Web. A recent upgrade: the ability to turn your Apple iPhone or iPod touch into an additional wireless controller.

That's why I was intrigued when a company called IntelliTouch recently introduced its own wireless audio system at less than one-fifth the price of the $1,000 Sonos. With the Sonos system, you get a Sonos controller and two "zone" players that can be placed in different rooms of the house. The $149 Eos Wireless Audio system comes with an iPod dock and a single wireless speaker -- so you may need to spend more for speakers to connect to the zone players. The system can accommodate up to four more zones throughout the home; each additional speaker-receiver combo costs $130.

While I was pleased with the IntelliTouch setup and wireless range, I found enough drawbacks to keep me from recommending it without reservation. With a music system, looks matter, and the aesthetics of the Eos base station meet with a mixed review. Nice silver metal grills cover the stereo speakers, and both my iPhone and iPod Touch fit snugly into the middle dock. But the glossy black plastic casing and controls feel a bit cheap. IntelliTouch tries to spruce up the look with blue lights on the control buttons sitting below the dock and the wireless antenna.

Lack of Control

The remote was an even bigger disappointment. It's small, with extremely limited usefulness. You can play, pause, forward, and mute the dock. But since there's no screen, you can't search your iPod or other devices for music or...

Tue, 27 Jan 09
Demand for Inaugural Video Overwhelms Some Sites
http://www.newsfactor.com/story.xhtml?story_id=64244
Millions of cubicle dwellers helped set records for Internet traffic in the United States as they watched online video of the presidential inauguration ceremonies -- or at least tried to. The overwhelming demand meant that some Web sites and data networks had trouble keeping up, forcing many people to turn to less cutting-edge forms of media.

"It was really frustrating to have this great technology and still not be able to watch the speech," said Dan Robinson of New York. "I had to use this TV from the early '80s and some rabbit ears to watch it."

Internet traffic in the United States hit a record peak at the start of President Barack Obama's inaugural address as people watched, read about and commented on the ceremonies, according to Bill Woodcock, the research director at the Packet Clearing House, a nonprofit organization that analyzes online traffic. The figures surpassed the previous high on the day Obama was elected.

"The peak is the highest measured to date, and it appears to be mostly a U.S. phenomenon," Woodcock said, adding that it did not appear that global records would be set.

When people are checking for election results or the score for a big game, they tend to produce smaller bursts of traffic spread out over several hours. With Obama's presidency starting at 9 a.m. on the West Coast, noon on the East Coast, people wanted to watch video at work or at home. That produced bulky streams of data traveling from media companies.

Data from CNN.com captured the surge. CNN said it had provided more than 21.3 million video streams over a nine-hour span.

That far exceeded the 5.3 million streams provided on Election Day. At its peak, CNN.com fed 1.3 million live streams simultaneously, according to Jennifer Martin, a spokeswoman.

Akamai, which helps companies meet demand for their...

Tue, 27 Jan 09
Yahoo's New CEO Imposes Salary Freeze
http://www.newsfactor.com/story.xhtml?story_id=64243
Yahoo Inc.'s employees will forgo their usual pay raises this year as the slumping Internet company struggles to boost its profits in a brutal recession.

The Sunnyvale-based company confirmed the salary freeze Thursday, the day after informing employees of the decision.

The austerity measure marks one of the first cost-cutting actions taken by Yahoo's new chief executive, Carol Bartz, who was hired two weeks ago to engineer a turnaround.

"Our management decided this was the responsible thing to do," Yahoo spokesman Brad Williams said. Some workers still could get raise this year if they are promoted to other jobs, Williams said.

Pay freezes are becoming more commonplace across the country as companies scramble to lower their expenses without firing employees. President Barack Obama joined in the trend on his first full day in the White House by eliminating raises for workers making more than $100,000 annually.

In more extreme instances, tech companies like Advanced Micro Devices Inc. and Seagate Technology are imposing steep pay cuts affecting thousands of workers.

Yahoo has about 13,700 employees after laying off 1,500 workers last month. No other job cuts are currently planned, Williams said, although management has previously warned another purge could come, depending on how much longer the 13-month-old recession lasts.

Tue, 27 Jan 09
Meltdown 101: How Tech Companies Are Taking a Hit
http://www.newsfactor.com/story.xhtml?story_id=64242
The economic recession is hurting every industry, and technology is no exception -- big names like Microsoft Corp., Intel Corp. and Dell Inc. have had layoffs as they try to cut costs and stay competitive amid declining sales.

But the effects of the meltdown haven't been spread evenly across the sector -- even within companies, sales of certain products may fall while others are more resilient. It seems that the health of tech companies has a lot to do with what they sell, and who their customers are.

"It's definitely a mixed and complicated picture here," Forrester Research analyst Andy Bartels said.

Here are some questions and answers about how the tech industry is weathering the financial crisis.

Q: How is this recession different for tech companies than the last one?

A: The 2001 recession stemmed in large part from the bursting of the tech industry bubble. This time around, the industry has been caught up in the downturn but is not a major cause -- areas like housing and banking are taking much of the blame.

Another difference: Nowadays, products like MP3 players and cell phones are more integrated than ever into consumers' everyday lives, and software and computers are increasingly intertwined with companies' operating needs.

Q
: How are companies that sell things like cell phones and computers being affected thus far?

A: Retail sales, both on and off the Web, have been slowing as consumers put off buying new things -- electronics included. According to The NPD Group, U.S. holiday sales of electronics and computers dropped 5.7 percent compared with last year.

This drop-off in spending hurt companies from Intel, which is seeing less demand for its computer chips as PC sales drop, to Nokia Corp., which said the number of cell phones it shipped during the fourth quarter dropped 15 percent from the year-ago quarter.

Bartels said...

Tue, 27 Jan 09
Sony Ramps Up Its Reform Efforts
http://www.newsfactor.com/story.xhtml?story_id=64233
Hard times are forcing Sony CEO Howard Stringer to give up his Mr. Nice Guy act. The Welsh-born American executive, who has used charm and wit to sell the rank and file on a modest reform agenda, is suddenly ramming through more drastic measures. That's because evaporating consumer demand and a sharp surge in the yen have left the Japanese tech giant no better off than it was when Stringer started three and a half years ago.

The company's future depends on whether Stringer can deliver. On Jan. 22, Sony issued its second profit warning in three months, saying it now forecasts a $2.9 billion annual operating loss -- its first in 14 years -- instead of $2.2 billion in profits. Sales are predicted to fall 13 percent, to $86 billion, rather than gain 1.4 percent, as had been projected.

Stringer blamed a "significant portion" of the expected losses on factors beyond Sony's control. The yen's rise has sharply eroded overseas earnings for many of Japan's top exporters, such as Toyota, Honda, Panasonic, and Sharp. It's especially painful for Sony because the company earns 80 percent of revenues in overseas markets. Plunging stocks also have hammered the company's insurance and banking unit, which has billions invested worldwide.

Sony's Software Weakness

Stringer admitted that the reforms he has pushed through since mid-2005 hadn't gone far enough. The company still suffers from bloated costs, an inefficient supply chain, and poisonous rivalries among divisions, he said. And while Sony had an "unbeatable" combination of top-notch consumer electronics, blockbuster movies, and TV programs and music, it hasn't fused them all into a winning whole. The reason: Sony's weakness in creating software to deliver online services. "There is still too much old Sony and not enough new, which at times means we are fighting our competitive wars at a...

Sat, 24 Jan 09
Senate Republicans Now Support Delaying DTV
http://www.newsfactor.com/story.xhtml?story_id=64265
Now that President Barack Obama is settled in, his administration's push to delay the transition from analog broadcast television to digital is in full swing. Senate Republicans, who initially didn't support the DTV delay, now favor pushing the transition from Feb. 17 to June 12. The Senate is expected to vote next week and the House soon after.

The reintroduced DTV Delay Act, pushed by Sen. Jay Rockefeller (D-W.Va.), still keeps the June 12 date, but now allows broadcast stations to switch to digital signals before June 12.

The bill would also allow consumers who have expired coupons for converter boxes to apply for new coupons. If approved, the deadline to apply for a coupon would move from March 31 to July 31.

"I am pleased that Chairman Rockefeller worked with me to address many of the concerns with the early proposals," said Sen. Kay Bailey Hutchison (R-Texas). "These changes will help consumers whose coupons have expired and allow TV stations that are prepared and ready to move forward without the requirement of simulcasting."

Ready or Not

Before his inauguration, Obama and his aides asked Congress to delay the change after being told by the National Telecommunication Information Administration (NTIA) that funding for the $1.34 billion digital converter box coupon program had run out.

Carlos Gutierrez, then secretary of the U.S. Department of Commerce, quickly responded with a letter to Rep. Henry Waxman (D-Calif.) saying the department and the NTIA were ready for the transition. Gutierrez said awareness of the transition moved from less than 40 percent of Americans to nearly 97 percent in two years.

The NTIA was tight-lipped on the situation because "no secretary of commerce has been either nominated or confirmed," according to Bart Forbes, a spokesperson for the NTIA. "Also, no NTIA administrator has either been nominated or confirmed."

Not...

Sat, 24 Jan 09
Vatican Launches YouTube Channel
http://www.newsfactor.com/story.xhtml?story_id=64264
These days, it seems everybody has a YouTube channel. The latest entrant into the digital-media mix is none other than Pope Benedict XVI.

The 81-year-old pope made the YouTube channel announcement during the Catholic Church's World Day of Communications. The theme was New Technologies, New Relationships: Promoting a Culture of Respect, Dialogue and Friendship.

The Vatican is taking advantage of social media to reach the masses even as the Catholic Church warns today's youth not to get obsessed with new media. The YouTube channel will offer links to Vatican and Catholic Web sites and video channels around the world.

The Pope on Facebook?

The Vatican channel is broadcasting short video news clips that feature the pope's activities as well as Vatican and Catholic Church events. The clips are currently available in English, Spanish, German and, of course, Italian.

The Vatican channel will have daily updates. News clips will run about two minutes. The Vatican television center is producing the clips in cooperation with Vatican Radio journalists and Web managers.

The Vatican launched its first Web site in 1995 and seems to be open to leveraging additional social-media technologies. YouTube is the first effort, but Archbishop Claudio Celli has indicated that the Catholic Church may have its own Facebook page one day.

Don't Neglect Human Contact

The pope's message to YouTube users revealed the Catholic Church's motive: To put social media in "the service of the truth." The pope also warned not to disregard human contact and to seek quality online relationships rather than quantity.

"It would be sad if our desire to sustain and develop online friendships were to be at the cost of our availability to engage with our families, our neighbors, and those we meet in the daily reality of our places of work, education and recreation," the pope wrote in a message.

"If the desire for...

Sat, 24 Jan 09
Nokia Reports Mobile Market Share Decline
http://www.newsfactor.com/story.xhtml?story_id=64263
Nokia told investors that its sales declined 19 percent year-over-year to 12.7 billion euros (US$16.5 billion) in the fourth quarter. The company also said it now expects the mobile-device industry's sales this year will fall about 10 percent from 2008 levels.

Nokia's mobile-device shipments in the fourth quarter slid 15 percent year-over-year to 113.1 million. And for the entire industry, the Finnish handset maker estimates mobile-device shipments fell nine percent year-over-year to 305 million in the quarter.

Nokia CEO Olli-Pekka Kallasvuo attributed the poor performance to weaker consumer confidence, unprecedented currency volatility, and credit tightness. "We are taking action to reduce overall costs and to preserve our strong capital structure," Kallasvuo said. "This is clearly our top priority in the current economic environment."

Approximately 1,000 employees are expected to depart from Nokia, with about half occurring through divestitures, Kallasvuo said. However, the economic realities "require us to do significantly more, and we will take further action," he said.

A Tough Quarter

During last year's final quarter, Nokia's slice of the mobile-device market dropped three percentage points from the 40 percent share it had captured in the year-ago period. The decline was driven primarily by market-share losses in the Middle East and Africa, North America, Asia-Pacific, and in Greater China, the company said. Moreover, the average selling price of Nokia's mobile devices slipped to 71 euros (US$92.22) -- down from 83 euros (US$107.81) a year earlier and one euro less than in the prior quarter.

"The fourth quarter was really tough," said Gartner Research Director Carolina Milanesi. "Their volumes were a bit lower than what we had anticipated."

Milanesi said in late November that Nokia was best positioned to deal with tough market conditions because of its economies of scale. Despite Nokia's latest sales woes, Milanesi sees no reason to change her mind.

"Though it's...

Sat, 24 Jan 09
Digg Trims Staff To Move Toward Profitability Goal
http://www.newsfactor.com/story.xhtml?story_id=64262
Popular news-collection and social-networking Web site Digg.com is cutting back its workforce in hopes of achieving profitability. The San Francisco, Calif.-based company will reduce its staff of 75 people by 10 percent, according to founder Jay Adelson.

Adelson said the company's goal is to become profitable this year and can only do so by being more conservative. He founded the company in October 2004 and has pulled in $40 million in funding, including a $28 million round just four months ago.

"This means we'll be taking proactive measures to manage our costs, including a head-count reduction in certain areas that are less core to this year's objectives while continuing to hire for roles that will help build on our leadership position and get us to profitability faster," Adelson wrote in a Digg blog.

To reach its goal, Digg's management team plans to hire a direct-sales team in addition to other "targeted hires."

Things To Do

Digg has other things on its to-do list, including rolling out new features for its more than 35 million-member community, focusing on sponsorship opportunities, and continuing with publisher and trade partnerships.

One critical step for the company is to work on expanding its advertising strategy and building on its partnership with Microsoft to sell ads. Digg's three-year, revenue-sharing deal with Microsoft began in July 2007 after Digg considered Yahoo and Google as partners. The contract is up next summer.

"I'm confident that with commitment and focus on these priorities, Digg will be an even stronger company in 2009 and will continue to create innovative features for our more than 35 million community members," Adelson said.

Competition Heats Up

While Digg begins to refocus, competition is getting stronger. Last week, visitors to Twitter, another popular social-networking and news site, surpassed Digg for the first time, according to Hitwise, an Internet...

Sat, 24 Jan 09
Google Reports 18 Percent Jump in Q4 Revenue
http://www.newsfactor.com/story.xhtml?story_id=64261
For all the doom and gloom around Intel and Microsoft this week, Google offered some bright news on the heels of Apple's record earnings report. Late Thursday, Google announced financial results for the fourth quarter.

Google reported revenue of $5.7 billion for the quarter ended Dec 31, an increase of 18 percent compared to the fourth quarter of 2007 and an increase of 3 percent compared to the third quarter of 2008. Google reports its revenues, consistent with GAAP, on a gross basis without deducting traffic-acquisition costs (TAC). In the fourth quarter, TAC totaled $1.48 billion, or 27 percent of advertising revenues.

"Google performed well in the fourth quarter, despite an increasingly difficult economic environment. Search-query growth was strong, revenues were up in most verticals, and we successfully contained costs," said CEO Eric Schmidt. "It's unclear how long the global downturn will last, but our focus remains on the long term, and we'll continue to invest in Google's core search and ads business as well as in strategic growth areas such as display, mobile and enterprise."

Global Income

Google-owned sites generated revenues of $3.81 billion, or 67 percent of total revenue, in the fourth quarter. This was a 22 percent increase over fourth quarter 2007 revenues of $3.12 billion and a four percent increase over third-quarter revenues of $3.67 billion.

Google's partner sites generated revenues, through AdSense programs, of $1.69 billion, or 30 percent of total revenue. This was a four percent increase over fourth quarter 2007's $1.64 billion and a one percent increase over third quarter revenues of $1.68 billion.

Revenues from outside the U.S. totaled $2.86 billion, or 50 percent of total revenue, compared to 48 percent in year-ago quarter 51 percent in the third quarter. If foreign exchange rates had remained constant from the third quarter through the fourth quarter, fourth-quarter revenue would...

Sat, 24 Jan 09
Obama Will Keep BlackBerry One, Limit E-Mail
http://www.newsfactor.com/story.xhtml?story_id=64260
The world's biggest to-do list, on the desk of President Barack Obama, now has one less item. Obama will keep his BlackBerry.

Among the many issues the new president faced, the tug-of-war with his security team on continuing to use his portable device received more than its share of attention. But, in the post-partisan manner favored by the 44th president, a compromise was announced on Thursday.

'Use Will Be Limited'

Under the arrangement, a super-encryption package will be added to Obama's BlackBerry, giving the most powerful person on the planet on-the-go access to e-mail. According to Press Secretary Robert Gibbs, "use will be limited." Obama will only be able to e-mail senior staff, Gibbs told reporters, as well as "a small group of personal friends."

The highest level of encryption for BlackBerrys currently used by top-level government officers is Secret, and -- as the most visible target for hackers -- Obama's security needs are higher. For instance, a BlackBerry can become a homing device broadcasting its user's location, or it can be hacked to act as a remote microphone, in addition to more standard e-mail and voice-communication prying.

Obama has said his BlackBerry allows him to more easily get around the bubble that presidents find themselves in. "They're going to pry it out of my hands," he told one interviewer before the compromise was reached.

But e-mail, which appears to be Obama's main interest, can be a two-edged sword. The Freedom of Information Act and the Presidential Records Act of 1978 require that e-mails relating to official business be preserved as public records. The informal nature of such e-mails can lead to embarrassment or worse.

Oh, the Irony

In fact, former President George W. Bush dropped e-mailing altogether because of the public-record laws, and his predecessor, Bill Clinton, reportedly still doesn't e-mail.

Last fall, The Onion, a satirical...

Sat, 24 Jan 09
Apple COO Shoots Down Rumors, Eyes Palm's Pre
http://www.newsfactor.com/story.xhtml?story_id=64259
Apple COO Tim Cook has poured cold water on some persistent rumors and indicated Apple could take legal action against a competitor.

An iPhone nano was one rumor that has been circulating for at least 18 months. Some reports said the device would have a smaller screen and possibly less functionality. The rumor was fanned in recent months by reports of nano casings being made and of China-based factories gearing up for nano production.

Making the Best Phone

But in an earnings conference call this week, Cook said Apple will not be producing any low-end phones and is not focused on becoming the biggest seller of mobile phones. Instead, he said, Apple wants to concentrate on offering the best phone. He added that software drives iPhone sales, and multiple screen sizes, input methods, and hardware increase the difficulties for developers.

Avi Greengart, an analyst with industry research firm Current Analysis, said he expected Apple "to develop high-end and low-end versions of the iPhone over time, expanding to multiple price points."

But he anticipated that the differentiation would focus on faster processors, a better-quality camera, and the like, rather than versions that, for instance, lower screen resolution.

Cook also lanced any ideas that Apple might enter the netbook market at this time. These smaller-than-laptop, less-expensive devices are selling well, and more hardware makers are jumping into the category.

But Cook said netbooks, with cheaper parts and less software capabilities, offer a lower computing experience. He echoed CEO Steve Jobs, now on medical leave, who reportedly said at the last earnings conference call that Apple didn't "know how to build a sub-$500 computer that is not a piece of junk."

A Veiled Threat To Palm?

However, Cook didn't totally close the door to the netbook market, saying the company will watch the category's growth. Apple well knows how quickly...

Sat, 24 Jan 09
Mac Malware Spreads on Pirated Copies of iWork 09
http://www.newsfactor.com/story.xhtml?story_id=64230
Who said Macs are immune to viruses? Some malware makers aim to bust that myth with a Trojan horse that's being downloaded across the Internet.

Mac security software firm Intego identified a Trojan on Wednesday that affects computers running Mac OS X. The malware was found on some pirated copies of Apple's new iWork 09 productivity suite on peer-to-peer sites. iWork is Apple's answer to Microsoft Office.

"The installer for the Trojan horse is launched as soon as a user begins the installation of iWork, following the installer's request of an administrator password," Intego said. "This software is installed as a start-up item (in /System/Library/StartupItems/iWorkServices, a location reserved normally for Apple start-up items), where it has read-write-execute permissions for root." In Mac OS X 10.5.1 or earlier, there will be no password request.

Foolish Behavior

Once installed, the virus, called OSX.Trojan.iServices.A, connects to a remote server, where a cybercriminal is alerted that the virus is installed. At that point, criminals can begin connecting to the infected Mac to perform various actions. The virus may also download additional data to an infected Mac.

Anyone who downloads a pirated copy of iWork 09 is not only breaking Apple's copyright, but risks becoming infected, according to Graham Cluley, a senior security consultant at Sophos. Like much of the Windows malware we see, he said, that Trojan horse is designed to turn computers into bots (Web robots), which hackers can abuse for whatever nefarious purpose they like, including sending out spam or stealing identities.

"Of course, you would be crazy to download any commercial copyrighted software from a (BitTorrent) site, but that doesn't seem to stop lots of people from doing precisely that," Cluley said. "It's particularly absurd when you realize Apple makes available for free download a 30-day trial version. And so it's understandable that some Apple fans might...

Sat, 24 Jan 09
Social Networks Are the New Web Portals
http://www.newsfactor.com/story.xhtml?story_id=64223
Not long ago, it seemed that four companies would forever dominate the Web in traffic and ad dollars. Each of the Big Four -- Google, Yahoo!, Microsoft's MSN, and Time Warner's AOL -- attracts more than 100 million unique visitors a month. Collectively the group accounts for roughly 90 percent of gross ad dollars online. So far, so good.

But now those companies are facing a threat to their dominance. I'm not talking about the recessionary headwinds that have slowed growth even for mighty Google. Nor is this about the self-inflicted wounds that have weakened the positions of the other three players. Yahoo spent the last year in turmoil following Microsoft's takeover offer, inducing Carl Icahn to elbow his way onto the board and then force out CEO Jerry Yang as business conditions grew increasingly dire. AOL is hardly better off. Its former CEO, Jonathan Miller, freely admits that AOL essentially missed the boat on social media and the decline of AOL's legacy connectivity business. Microsoft failed to acquire Yahoo and continues in vain to seek a credible competitive response to Google's search advertising juggernaut.

These travails aside, there are bigger threats on the landscape. Today's massive social networking systems are rapidly becoming Webs within the Web -- one-stop shops for a wide range of services (from content to communications to commerce) that were once the unique province of the Big Four.

One-Stop Shopping at Facebook

For example, through a combination of its own creation and that of third-party developers, Facebook has become a world unto itself. Now the Web's largest social network as measured by active users [140 million at yearend 2008], Facebook offers bread-and-butter portal services like e-mail and instant messaging as well as photo posting and video sharing. But Facebook's reality extends much further. A partnership with Amazon.com has produced a...

Sat, 24 Jan 09
Nokia Discontinues WiMAX Tablet Computer
http://www.newsfactor.com/story.xhtml?story_id=64220
Just as Clearwire Corp. has fired up its long-awaited WiMax wireless data network in two cities, Nokia Corp. has stopped selling the only portable gadget that can use the network without accessories.

Nokia spokeswoman Laurie Armstrong confirmed Wednesday that the company has discontinued the N810 Internet Tablet WiMax Edition on its Web site.

Armstrong did not say why the tablet was withdrawn. But she said Nokia is still interested in WiMax, and by the time WiMax networks are more widely deployed, "refreshed products with even better performance will be required."

Nokia's portable computer, which has a 4.1-inch touch-sensitive screen and a slide-out keyboard, is still for sale for $438 in a version without a WiMax modem.

WiMax, sometimes described as a long-range version of Wi-Fi, is a competitor to traditional cellular broadband technologies. It offers relatively fast data speeds, and its proponents hope that WiMax antennas will be built into a variety of gadgets, from small computers to GPS devices.

Leading computer manufacturers have announced their intention to make their laptops WiMax-capable, but for now the only way to use Clearwire's "Clear" network is with plug-in modems.

"We have a robust pipeline of devices slated throughout 2009 and will be providing more details in the coming weeks," said Susan Johnston, spokeswoman for Clearwire.

The network is live in Baltimore and Portland, Ore.

Clearwire was formed last year by the union of a smaller company of the same name with Sprint Nextel Corp.'s WiMax division.

Sat, 24 Jan 09
Review: New Windows Basically Fixes the Old
http://www.newsfactor.com/story.xhtml?story_id=64216
For an operating system that took five years to create, Windows Vista saw its reputation go down in flames quickly. Not since the Microsoft Bob interface in 1995 has anything from the software giant racked up so much contempt and derision. Not every company lives to see the day when its customers beg, plead and create petitions to bring back the previous version of its flagship product.

One thing is certain: It won't take Microsoft five years to produce the next Windows. The company wants to put Vista behind it as soon as possible. In fact, the next version of Windows is almost here already. It's called Windows 7, and it's available as a free download, in not-quite-finished, beta-test form, from Microsoft.

It is not nearly the overhaul that Vista was. In fact, what Microsoft seems to be going for in Windows 7 is "Vista, fixed."

If you ask the masses what they disliked about Vista you're likely to get a common set of responses. That list makes a good framework for assessing the prospects of Windows 7, which is expected to arrive within a year.

*

It's naggy and intrusive.

Windows Vista is always popping up warnings and messages, making you wish you could just be left alone. Many of them stem from the much-despised, Orwellian-named User Account Control, or UAC, which is supposed to warn you about virus and spyware.

The trouble is, UAC was too suspicious, demanding your name and password even when you were just making innocent changes, like setting your computer's clock. In Windows 7, you can tone UAC down. For example, you can eliminate the warnings when you are the one making the changes.

Furthermore, Windows 7 bites its tongue far more often. Ten categories of low-urgency alerts no longer appear as taskbar balloons. Now they get consolidated in a new...

Sat, 24 Jan 09
eBay Sales: Going, Going . . . Gone?
http://www.newsfactor.com/story.xhtml?story_id=64214
By his own admission, eBay Chief Executive John Donahoe is "frustrated." With good reason. Fourth-quarter results reflect the company's first-ever quarterly revenue decline, a sign that Donahoe's effort to reignite growth has yet to take effect.

On Jan. 21, the company said sales dropped 6.4 percent, to $2.04 billion, amid weakness in consumer spending and strength in the U.S. dollar, which reduces the value of overseas sales. "It's a sign that eBay hasn't been able to buck the trend" of poor consumer turnout during the holiday season, says Jeff Lindsay, an analyst at New York-based Sanford C. Bernstein. "All the advantage of the online channel has gone mostly to Amazon."

Fixed-Price Shopping Goes to Amazon

But eBay's most recent earnings reveal deeper problems than a sour Christmas. As CEO since the March 2008 departure of predecessor Meg Whitman, Donahoe has redoubled efforts to cut eBay's dependence on auctions, which have fallen out of favor for many consumers, and raise the company's reliance on fixed-price items. In short, management has tried to make eBay more like online retailing stalwart Amazon.com. Fixed-price sales now account for almost half of all transactions.

Yet, consumers who shop online are flocking to Amazon and other retailers. At eBay, the core online shopping business suffered a double-digit drop in revenue, down 16 percent, to $1.3 billion. Transactions on its site, excluding the especially poor-performing auto category, fell 12 percent over the same period. "At the end of the day, if you compare the experience of buying fixed-price items on eBay vs. buying them on Amazon, Amazon wins," says Jim Friedland, an analyst at Cowen & Co. who has a neutral rating on eBay's stock. "It's such a better shopping experience."

Amazon doesn't report earnings until next week. But the site surprised analysts in December when it reported its best Christmas ever,...

Fri, 23 Jan 09
Nokia Profit Plummets Amid Murky 2009 Outlook
http://www.newsfactor.com/story.xhtml?story_id=64228
Nokia on Thursday reported a 69 percent drop in profit for the fourth quarter and said it will cut 1,000 jobs. The Helsinki, Finland-based mobile-phone maker blamed the plummeting profit on a lack of demand for its mobile handsets.

"In recent weeks, the macroeconomic environment has deteriorated rapidly, with even weaker consumer confidence, unprecedented currency volatility, and credit tightness continuing to impact the mobile communications industry," said Olli-Pekka Kallasvuo, chief executive at Nokia. "We are taking action to reduce overall costs and to preserve our strong capital structure."

The news comes on the same day Microsoft said it had to cut 5,000 positions, one day after chipmaker Intel announced it would slash 5,000 jobs, and one week after Motorola said it had to cut 4,000 jobs.

"Volumes were a bit lower than we expected," said Carolina Milanesi, research director of mobile devices at Gartner. "We predicted (Nokia) sales to be flat quarter on quarter rather than down. I think this reflects not only the current economic climate, but also the relative weakness that Nokia has in the high-end portfolio for markets such as Western Europe."

"As far as the job cuts go, I think at a time when cost savings is key, it is the right thing to do to look at every aspect [of] your business," Milanesi added.

A Bleak 2009?

Nokia said the outlook for the first quarter of 2009 looks bleak. Mobile devices will decline by 10 percent in 2009 from 2008, according to Nokia. Volumes in the first quarter of 2009 will also decline faster than the decrease in the first quarters of the past few years.

Net profit for the three months ending Dec. 31 was 576 million euros (US$749 million), below analysts' expectations of 977 million euros (US$1.3 billion).

The company's market share dropped to 37 percent in the fourth...

Fri, 23 Jan 09
Spy Photos of Android-Based G2 Emerge on the Web
http://www.newsfactor.com/story.xhtml?story_id=64227
The world's first Android-based smartphone, the T-Mobile G1, may soon have a sibling.

On Wednesday, the gadget-focused Web site Gizmodo displayed two photos that it said were of the G2 -- a soon-to-be-released device based on the open-source mobile platform. Like the G1, it is said to be made by HTC, but, unlike the G1, it has no physical keyboard. The blog also said the new device is thinner.

The pictures have caused a great deal of Android-based commentary on Web sites that are hungry for the next steps in this platform's evolution.

A 3.2-Megapixel Camera

Avi Greengart, an analyst with industry research firm Current Analysis, noted that Google has been "pretty upfront" about having the platform work with a variety of input methods, including either a physical or a virtual keyboard.

Greengart, who has a G1, said he "wasn't crazy" about the keyboard in that model. He said it doesn't "have enough travel," in that keys are not raised enough and don't press down well, among other things. It's not, he said, "what I could call a 'best of breed' keyboard."

Only a few other details on the G2 were given. According to Gizmodo, the G2 has a 3.2-megapixel camera, an interface similar to the current one, and a target release date of mid-May. If it otherwise follows its older family member, the G2 will also be released by T-Mobile.

Third Android

This would be the third Android device on the planet. A small manufacturer has also released an Android model for the Australian market only. But the extended family of such devices is expected to grow now that T-Mobile and HTC have had considerable success with the first one.

The Android mobile platform was launched in late 2007 by Google, along with a consortium of other companies who endorsed the open-source platform. The momentum for Android...

Fri, 23 Jan 09
Microsoft Will Cut 5,000 Jobs as Net Income Declines
http://www.newsfactor.com/story.xhtml?story_id=64226
Microsoft reported an 11 percent drop in net income for its fiscal second quarter compared to the year-earlier period. Revenue was up two percent to $16.63 billion, but profit was $4.17 billion, or 47 cents a share, versus $4.71 billion and 50 cents a year earlier.

Analysts had expected earnings per share of 49 cents. Microsoft's stock dropped to around $17 a share in late trading.

The software giant said economic conditions and a weak PC market in the year-ending quarter negatively impacted its Windows division, where revenue fell eight percent. A continuing shift to lower-priced netbooks also hurt the company's profit margins.

But CFO Chris Liddell assured investors that Microsoft would respond to "volatility in the macroeconomic environment" by implementing a $1.5 billion reduction in operating expenses.

"The economy clearly has deteriorated more than we expected," Liddell said during a conference call. "We have initiated a number of cost-saving steps which we shall layer in over the course of the next year."

Hitting the Brakes

Among other things, Microsoft will freeze pay raises and cut up to 5,000 jobs in research and development, marketing, sales, finance, legal, human resources, and IT over the next 18 months, including 1,400 jobs now. "We are also looking for reductions in marketing expenses and discretionary spending," Liddell said.

The 5,000 job cuts are all internal positions, Liddell noted. "Outside contractors are not included in that number, and we also will certainly be looking at reducing that," he said.

Still, Microsoft CEO Steve Ballmer said that even as the company eliminates some jobs, it will be adding more workers in key areas to take advantage of whatever market opportunities lie ahead.

"We don't plan on shrinking, but we are putting the brakes on," Ballmer told investors. "We are going to continue to invest in important areas of opportunity...

Fri, 23 Jan 09
Intel Plans To Close Plants, Shed Up To 6,000 Jobs
http://www.newsfactor.com/story.xhtml?story_id=64225
Intel on Wednesday became the latest technology giant to shed jobs in the face of an economic downturn that has already seen millions of people lose their jobs. The company said it plans to restructure its older manufacturing operations without impacting the deployment of new, leading-edge 45-nanometer and 32-nanometer technology.

Up to 6,000 Jobs at Stake

Two assembly test facilities in Penang, Malaysia, and one in Cavite, the Philippines, will be closed. Intel also will halt production at Fab 20, an older 200mm wafer-fabrication facility in Hillsboro, Ore. In addition, wafer-production operations will end at its D2 facility in Santa Clara, Calif.

The production halts at the four sites, combined with associated support functions, are expected to affect between 5,000 and 6,000 employees worldwide. However, Intel said some employees might be offered positions at other manufacturing sites. The reductions will stretch though the end of 2009.

"The Intel announcement wasn't a great surprise," said Charles King, principal analyst at Pund-IT. "Intel had a severely disappointing quarterly announcement and indicated that they were going to be looking for places to cut expenses and costs, which means job losses. This shows how interconnected the component manufacturers [are] in the PC industry."

An Uncertain 2009

The world's largest chipmaker posted a 90 percent decline in its fourth-quarter profit and a 23 percent decline in revenue. The company hasn't reported a loss since 1986, but its CEO is warning that first-quarter results could include losses.

"We are not going to wake up in six months with everything rosy again," Intel CEO Paul Otellini told employees last week. After 87 quarters of profit, Intel said the first quarter is "too close to call." Intel said last week it expects to return to healthy profit levels by the second half of 2009.

While Microsoft and Intel expect layoffs, Apple and IBM offered hope for...

Fri, 23 Jan 09
Supreme Court Closes Door on COPA Battle
http://www.newsfactor.com/story.xhtml?story_id=64224
The Supreme Court has ended a decade-long campaign to restrict Web content by refusing to hear the government's appeal of lower-court rulings that declared the Child Online Protective Act unconstitutional.

First passed in 1998, COPA restricted access by minors to any material considered harmful, including content related to sexual identity and pornography. The law was never enforced because of challenges by groups such as the American Civil Liberties Union, which said the law violated the First and Fifth amendments.

Three major studies, including one entitled Youth, Pornography, and the Internet by the National Academy of Science, described COPA as broad and vague and recommended software and parental controls as the best way to protect children from sexually explicit content.

Revival Possible

Former U.S. Attorney General Richard Thornburgh chaired a commission that determined the global nature of the Internet, criminal laws, and other regulations of content are ineffective, and education and parental empowerment with filtering are more effective than criminal law.

Still, the Bush administration sought to prove that although there are innovative ways to help parents restrict material through parental controls, those efforts did not provide a national solution to the problem.

"At the end of the day, the way the Internet works it is extremely difficult to impose a top-down law that does not have overconsequences or unintended consequences," said John Morris, director of Internet standards at the Center for Democracy and Technology.

The center and the ACLU applauded the court's decision. "This particular bill and case is over -- finally -- after a little more than 10 years of wasteful litigation from our perspective," Morris said.

While the court's action ends this law, there's not anything stopping the new Obama administration from seeking another one.

"It is certainly possible that there will be people on Capitol Hill who will want to...

Fri, 23 Jan 09
New York and Google Launch High-Tech Visitor Tools
http://www.newsfactor.com/story.xhtml?story_id=64207
New York City may be starting a new trend in city-oriented tourist Web sites. In partnership with Google, it has launched the NYCgo.com site, a portal to promote tourism, and opened a high-tech information center for visitors.

The Web site uses Google Maps and other information to make it easy for a visitor or a local resident to quickly find things to do, places to go, restaurants and other points of interest. The site also provides discounts and promotions.

Just Ask the Locals

The information center at 810 Seventh Avenue offers touch-sensitive horizontal screen tables that also use Google Maps. In a statement on The Official Google Blog, New York City Mayor Michael Bloomberg wrote that the new Web site and information center will "help make it easier for both visitors and residents to explore the energy, excitement and diversity of New York City's five boroughs."

Visitors can move around a table's map of the city's five boroughs. If the user has selected a category such as Museums & Galleries or Dining, the map will flag those places as a token is moved around. Each flagged item can then be opened to reveal photos and more information.

Since there are probably 10 million opinions about the city, no visitor's center would be complete without at least a few virtual New Yorkers. A visitor can browse a Just Ask The Locals section, where famous New Yorkers give recommendations.

'Custom Itinerary Flyover'

Visitors can save sites, recommendations and more to a physical disk and take it to a Video Wall where a "custom itinerary flyover" soars virtually over a detailed, three-dimensional map of the city. The wall also offers yet more advice from celebrities and local experts, and the visitor can send the itinerary to his or her cell phone, e-mail, or print it.

Andrew Frank,...

Fri, 23 Jan 09
Record Apple Earnings Top Wall Street Expectations
http://www.newsfactor.com/story.xhtml?story_id=64206
What recession? Apple on Wednesday announced its fiscal 2009 first-quarter results with record-breaking numbers. The company topped $10 billion in quarterly sales for the first time and exceeded Wall Street's expectations.

Apple posted record revenue of $10.17 billion and record net quarterly profit of $1.61 billion, or $1.78 per diluted share. These results compare to revenue of $9.6 billion and net quarterly profit of $1.58 billion, or $1.76 per diluted share, in the year-ago quarter. International sales accounted for 46 percent of the quarter's revenue.

"Even in these economically challenging times, we are incredibly pleased to report our best quarterly revenue and earnings in Apple history -- surpassing $10 billion in quarterly revenue for the first time ever," said CEO Steve Jobs.

What's Selling? Everything!

Apple sold 2,524,000 Macintosh computers during the quarter. That's a nine percent growth over the year-ago quarter. The company also sold a record 22.727 million iPods during the quarter, a three percent growth over the year-ago quarter. Quarterly iPhone sales were 4.363 million, an 88 percent growth over the year-ago quarter.

"Our outstanding results generated over $3.6 billion in cash during the quarter," said Peter Oppenheimer, Apple's CFO. "Looking ahead to the second fiscal quarter of 2009, we expect revenue in the range of about $7.6 billion to $8 billion, and we expect diluted earnings per share in the range of about 90 cents to $1.00."

Apple's stock, which has taken a beating in recent weeks from speculation about Jobs, his health, and the impact of his decision to take a six-month leave of absence, rose to recover recent losses. Shares were selling around $88 at noon EST.

The Impact of the iPod Touch

Apple reported that iPhone 3G sales have been significantly greater than sales of the first-generation iPhone. During the first quarter of iPhone 3G availability ended Sept. 27,...

Fri, 23 Jan 09
YouTube Expands Video Click-To-Buy Ad Program
http://www.newsfactor.com/story.xhtml?story_id=64205
In the battle for online advertising dollars, YouTube has been rolling out new products in recent months to grab more revenue. In its latest move, the Google-owned video site is expanding its click-to-buy program.

The feature lets visitors purchase songs and video games while watching videos on the site. Partners include Amazon and Apple's iTunes Store. YouTube initially launched the concept in the United States and the United Kingdom, but is now moving affiliate ads to Germany, Spain and the Netherlands.

"The past few months have demonstrated that great content on YouTube leads to increased sales," YouTube said on its corporate blog. "For example, when Monty Python launched their channel in November, not only did their YouTube videos shoot to the top of the most viewed lists, but their DVDs also quickly climbed to No. 2 on Amazon's Movies & TV bestsellers list, with increased sales of 23,000 percent."

A Broad Platform

The expansion shouldn't be surprising. When YouTube launched the ad model in October, Glenn Brown, YouTube's strategic partner development manager, said it was just the beginning of building a broad e-commerce platform.

He said YouTube's vision is to "help partners across all industries -- from music, to film, to print, to TV -- offer useful and relevant products to a large yet targeted audience, and generate additional revenue from their content on YouTube beyond the advertising we serve against their videos."

Besides moving into three new regions, the program also removed some limits. YouTube said the program is no longer restricted to tracks on videos uploaded directly by YouTube partners. Partners can add these links to videos uploaded by users by using YouTube's Content ID tools to claim videos that use their content.

YouTube also said it has already experimented with links to purchase DVDs and video games, and intends to experiment with links...

Fri, 23 Jan 09
Choosing the Right Internet Browser
http://www.newsfactor.com/story.xhtml?story_id=64196
Many PC buyers assume there is one way to get onto the Internet -- Internet Explorer. It's already on the desktop, it seems to work, so why mess with a good thing?

But these days there are many choices when it comes to browsers, and even casual Internet users should be aware of the alternatives.

Beyond Microsoft's Explorer, the roster of major players now includes Safari (from Apple but usable on PCs), Firefox (from Mozilla), Chrome (a new entrant from Google) and Opera (from Opera Software). And there are relatively obscure choices such as Camino, Epiphany and the cute-sounding SeaMonkey. The list goes on.

Here's a fairly complete roster: http://tinyurl.com/eed8b.

Most of us don't want to spend a lifetime sampling browsers. All we want is one that's fast, doesn't crash often and offers some protection against malware and hackers.

Unfortunately, seldom does a week pass without a news story about a new security flaw or breach in Explorer, the most commonly used browser. No doubt, Explorer's popularity has made it a prime target for hackers. It isn't fair, but it's reality. I hear from more and more users who get queasy about using Explorer.

So I've spent some time with each of the major browsers to find my favorites.

Before I tell you what I think, let's be clear: The test lab at Technobuddy Ranch and Spa is limited to an old tube tester and a glow-in-the-dark Batman decoder ring. So, where needed, I will steer you to sites that have made extensive efforts to test browsers side by side. My impressions are mainly just that -- impressions. I'd love to hear yours.

Speed

Explorer seems -- and tests back this up -- downright slow vs. the others. Here's one of the many speed tests from the Web that, like most I saw, rates Explorer last in many...

Fri, 23 Jan 09
The Biggest Tech Trends of 2008
http://www.newsfactor.com/story.xhtml?story_id=64194
With only a few exceptions (the iPhone, Amazon.com, the deep-fried Oreos among them), big technology changes in our lives don't usually come from one new gadget or a single game-changing event. You can trace the lineage of our less-clunky cell phones over the past 20 years the way you'd run your finger along a human evolution chart. Our TVs got flatter, digital, high-deffed, but it's taken a decade for us to say we didn't see it coming.

Looking over the past year, though, it's not hard to see a few trends that are with us to stay and will have lasting impact far beyond 2008. Here are five of the technologies that transformed us last year and will continue to do so in '09.

It's basically just a frilly way of saying "the Internet," the place where companies like Google, Dell and Apple are betting you'll want to store your addresses, e-mail, family photos and other personal data. Wouldn't it be nice to live in a world without hard-drive crashes, with all our software and information floating in this indestructible, always accessible "Cloud" thingy? Unfortunately, enthusiasm met with reality. Apple's launch of Mobile Me in June was a technical disaster, and Dell's attempt to trademark the term "Cloud computing" was rejected by the U.S. Trademarks Office in August. Those are just speed bumps, though. Much more of our virtual stuff will be up in The Cloud, whether we like it or not.

We're not just talking about Apple's iTunes App Store, introduced in June, which opened the floodgates to thousands of downloadable applications ("Apps") for the iPhone and iPod Touch. The idea of a store where you can download programs, many of them free, to your cell phone to expand its capabilities also was embraced this year for Google's Android phones (the...

Fri, 23 Jan 09
Cost-Cutting Google Scraps Newspaper Ad Program
http://www.newsfactor.com/story.xhtml?story_id=64191
Google Inc. is giving up on selling print ads for the ailing U.S. newspaper industry, ending a 2-year-old attempt to extend its dominance of Internet marketing into another medium.

The retrenchment announced Tuesday is part of a cost-cutting campaign aimed at boosting Google's profits as the deepening recession eats away at Google's bread-and-butter business of selling ads on its own Web site and thousands of other Internet destinations.

Emboldened by its online success, Google set out in November 2006 to help newspapers that have seen their revenue evaporate as more advertisers shifted their spending to the Internet to connect with the Web's growing audience.

Under the program, potential advertisers were allowed to bid online to fill unsold space in the participating newspapers, leaving it up to publishers whether to accept the offers.

But Mountain View, California-based Google concluded that its online expertise wasn't paying off in print, prompting management to pull the plug on its newspaper program effective Feb. 28.

The decision affects about 800 U.S. newspapers, up from the 50 publications that had initially enlisted Google's help.

"While we hoped that print ads would create a new revenue stream for newspapers and produce more relevant advertising for consumers, the product has not created the impact that we -- or our partners -- wanted," Spencer Spinnell, Google's director of the program, wrote in a Tuesday blog posting.

Without providing specifics, Google pledged to help newspaper publishers find other ways to make more money, presumably by driving more traffic to their Web sites and helping them sell more Internet ads. But Google may be hard pressed to address newspapers' biggest problem: Internet ads simply do not generate as much revenue as print ads.

Yahoo Inc., which runs the second-largest Internet marketing network behind Google's, has been trying to help newspapers sell more online ads for the past two years....

Fri, 23 Jan 09
IBM Sunny About 2009 Despite Dreary Forecasts
http://www.newsfactor.com/story.xhtml?story_id=64187
In what promises to be a dismal year for tech spending, IBM Corp. packed a wallop of a surprise with its 2009 profit guidance: the numbers were so far ahead of Wall Street's forecast they were initially met with disbelief.

The Armonk, N.Y.-based company predicted at least $9.20 per share in profit in 2009, a full 45 cents per share better than the average estimate of analysts polled by Thomson Reuters. The forecast is an extremely bullish statement by IBM. It reflects the company's belief that it can outmaneuver the financial crisis by focusing on services and software deals that carry big profit margins, but also help businesses cut costs by offloading some of their tech chores.

IBM revealed the rosy forecast Tuesday as it reported profit for the fourth quarter of 2008 that also sailed past analyst estimates, while sales fell short.

IBM's net income for the period was $4.4 billion, or $3.28 per share. That amounted to a 12 percent profit increase from $3.95 billion, or $2.80 per share, in the same period a year earlier.

Analysts were expecting IBM to earn $3.03 per share this time.

IBM shares jumped 4 percent in extended trading.

"To be honest, I didn't believe they could show something like this -- I think the results they posted were stellar," said Peter Misek, an analyst with Canaccord Adams. "They just executed really well -- really, really, really well."

Analysts had been expecting IBM to be hurt worse by its heavy dose of sales to big banks and other customers devastated by the economic downturn. Instead, IBM's results show that while the company has seen some sales vaporize, it is still able to wring out better profits because of aggressive cost-cutting and by focusing only on the most profitable deals.

One key measure of profitability -- IBM's gross profit margin --...

Thu, 22 Jan 09
Citrix Working On Desktop Virtualization for Intel Devices
http://www.newsfactor.com/story.xhtml?story_id=64203
Citrix Systems on Wednesday said it's developing an application and desktop virtualization solution optimized for Intel Core 2 desktops and Centrino 2 laptops with Intel vPro technology, under the code name Project Independence.

Specifically, Citrix plans to develop a new class of virtualization solutions that optimize the delivery of applications and desktops to millions of Intel-powered devices. Citrix's goal is to reduce desktop management costs, a message that may resonate with corporations in a down economy.

Citrix is positioning the product as a first-of-its-kind hypervisor-based virtualization solution that offers centralized desktop virtualization with a personalized PC environment. In practical terms, that means both mobile and office workers can take advantage of enterprise-scale virtualization without sacrificing security, manageability, ease of use, performance or mobility, according to Citrix.

"Extending that collaboration to the client will enable our Citrix Delivery Center infrastructure to communicate directly with millions of Intel-based devices, changing the game in desktop virtualization in a way that benefits customers of both companies," said N. Louis Shipley, group vice president and general manager of the XenServer product group at Citrix.

A Distinct Approach

At the core of Citrix's new solution is bare-metal Xen-based desktop hypervisor optimized for Intel Virtualization Technology and other features of Intel vPro technology. The new client hypervisor aims to enable IT professionals to dynamically stream a centrally managed corporate desktop and applications onto a secure, isolated client-based virtual machine. Citrix said Project Independence will offer a new level of cost savings and IT agility.

Citrix said its approach is different than existing products because it caches and executes desktop and application software directly on the PC client. The combination of centralized desktop and application management with a secure, personalized and mobile user experience aims to reduce the cost of managing an increasingly mobile workforce while augmenting security and always-on access to corporate...

Thu, 22 Jan 09
Sony Likely To Close TV Plant in Japan, Cut 2,000 Jobs
http://www.newsfactor.com/story.xhtml?story_id=64202
Sony is expected to post its first annual loss in 14 years and is cutting more than 2,000 full-time jobs and closing one of its two Japanese TV plants in Aichi Prefecture, in western Japan, according to Japanese business newspaper Nikkei.

Sony CEO Howard Stringer is expected to announce the cits amd plant closing at a news conference Thursday, according to the newspaper.

The move is expected to help Sony revive its struggling electronics business, which is believed to be at the core of the company's financial problems. As of 2006, Sony operated 13 plants in Japan. In the same year, Sony closed a portable music-player factory.

Sony has not been immune from the global recession. In October, the company had a full-year operating profit of 200 billion yen (US$2.2 billion), but poor holiday sales and lowered consumer spending on electronics pushed sales down.

Closures Expected

Cuts and plant closures were expected, though not in Japan. Late last year, Sony said it had seen a drop in sales of LCD televisions that forced the company to cut up to 16,000 jobs and scale back investments in its electronics business by 30 percent in the fiscal year ending March 2010.

In December, Sony also said it would close at least five of its 57 manufacturing plants in order to save the company 92.5 billion yen (US$27.9 million).

The maker of Bravia LCD TVs and Cybershot cameras as well as the popular PlayStation game consoles also disclosed that it would stop production at two overseas manufacturing sites, including the Sony Dax Technology Center in France; push manufacturing to low-cost areas; and use OEM partners. And it doesn't end there.

Sony postponed expansion at its Nitra plant in Slovakia, one of its LCD television-assembling sites.

Restructuring has been part of Sony's way of business since 2003, when the...

Thu, 22 Jan 09
SEC Probes Apple's Reports on Steve Jobs' Health
http://www.newsfactor.com/story.xhtml?story_id=64201
Apple's reporting on the health of CEO Steve Jobs will be the subject of an inquiry by the Securities and Exchange Commission, according to news reports.

Bloomberg News, among others, is reporting that the SEC wants to ensure that investors weren't misled, and said the opening of an inquiry doesn't indicate evidence of wrongdoing. Bloomberg's reporting is based on an anonymous source "familiar with the matter."

Back-and-Forth

Jobs, whose customary keynote address at Macworld was long the occasion for new product releases, declined to appear this year. Jobs showed up for an Apple event in June, but looked very thin.

As Macworld opened early this month, Apple sought to dispel rumors of a serious health problem by releasing a statement that the computer pioneer was suffering from a treatable hormone imbalance. The imbalance, Jobs said at the time, "has been robbing me of the proteins my body needs to be healthy." But about a week later, the company said Jobs would take a five-month leave of absence because of "more complex" health matters.

Jobs had been in a successful treatment for pancreatic cancer since 2004, so speculation initially centered around whether the cancer had reappeared. Apple said it had not, but Bloomberg recently reported that Jobs is contemplating a liver transplant because of complications relating to his treatment.

The back-and-forth about Jobs' health has given Apple's stock price some bumpy rides. After the medical leave was announced, the stock fell more than eight percent. Apple COO Timothy Cook is running Apple during Jobs' absence, although Jobs has said he intends to be involved in strategy decisions.

'Inside Baseball'

Given the importance of Jobs to Apple's image and product launches, his health has a more-than-usual importance to the company. Apple's board, which includes former Vice President Al Gore and Google CEO Eric Schmidt, has declined to comment.

Although some observers...

Thu, 22 Jan 09
Apple Boosts MacBook Specs with Nvidia Chip, Upgrades
http://www.newsfactor.com/story.xhtml?story_id=64200
Apple has updated its MacBook under the radar with a new graphics chip without changing the laptop's $999 price tag.

Until now, the MacBook has been offered in a white polycarbonate shell with an older graphics processor. With the change, the white MacBook has a Nvidia GeForce 9400M graphics processor that makes it operate more like the aluminum MacBooks that cost $1,300, according to the Apple Store.

Nvidia's 9400M G motherboard processing units combine the GPU, system memory controller, and system into a single chip for powerful computing, according to Nvidia. The chip includes a high-definition processor that off-loads all video coding from the CPU, which is supposed to provide users with crisp, high-definition video, accurate color, and image scaling while using less power.

Apple is touting the new MacBook as the "does-everything-you-want MacBook" with updated features.

Under the Hood

According to Apple, there's a lot of power under the hood of the updated MacBook, including an Intel Core Duo processor. For the mobile MacBook user, there's a built-in 802.11n wireless feature that finds Wi-Fi networks and places them on the desktop, enabling the user to click and connect to the network.

Another feature is iDVD software, which allows users to burn their own CDs or DVDs, back up data, and create music mixes.

Additional upgrades include a jump from 1GB of RAM to a standard 2GB of RAM, an option for a 320GB hard-disk drive, and an upgrade from Bluetooth version 2.0 to 2.1.

Recognizing the Recession

Putting additional features in the white MacBook without changing the price is a move in the right direction for Apple, according to Paul Jackson, a Forrester analyst.

"It is recognition from Apple, as we are starting to see from our own data and the independent research companies, that people are delaying the purchase of PCs," Jackson said.

Forrester recently...

Thu, 22 Jan 09
AMD Slashes Chip Prices, Sells Handheld Assets
http://www.newsfactor.com/story.xhtml?story_id=64199
Call it a battle of survival. Advanced Micro Devices is following in Intel's footsteps by slashing prices on its processors and is selling off parts of its business in a $65 million deal to streamline operations.

On Tuesday, Qualcomm acquired from AMD graphics and multimedia assets, intellectual property, and resources that were formerly the basis of the chipmaker's handheld business. Qualcomm said the acquisition bolsters its multimedia capabilities and sets the stage for delivery of more advanced products that redefine next-generation mobile user experiences.

"This acquisition of assets from AMD's handheld business brings us strong multimedia technologies, including graphics cores that we have been licensing for several years," said Steve Mollenkopf, executive vice president of Qualcomm and president of Qualcomm CDMA Technologies. "Bringing this technology in-house creates even greater synergy as we seamlessly integrate the best-in-class multimedia performance AMD offers into our system-on-a-chip products."

A Done Deal

Qualcomm and AMD inked the deal on Jan. 19. The companies had already received the required regulatory approvals. The $65 million in cash Qualcomm paid AMD is subject to adjustments for employee-related expenses and a holdback for certain customary indemnification obligations. The companies said they are committed to a seamless transfer.

In fact, as part of the acquisition deal, Qualcomm has offered to hire the design and development teams from AMD's associated handheld business. The teams are currently developing technologies to enhance mobile devices in areas including 2-D and 3-D graphics, audio/video, display and architecture.

"With the sale of these handheld technology assets and resources to Qualcomm, we are better able to focus on our core business and leverage our unique position as a leader in both x86 computing and high-end graphics," said Robert Rivet, chief operations and administrative officer and CFO of AMD. "We believe the talented AMD Handheld employees will be a great asset to Qualcomm."

Qualcomm's New...

Thu, 22 Jan 09
IBM Deals Expand Mobile Base for Lotus Platform
http://www.newsfactor.com/story.xhtml?story_id=64198
Upping the ante on rival Microsoft, IBM has taken the wraps off a series of collaborative agreements aimed at dramatically increasing the visibility of the company's Lotus collaboration platform on wireless handsets.

Big Blue is partnering with Verizon Wireless, Orange Group, and Samsung Electronics to deliver IBM Lotus Notes and Domino software to smartphone users in the United States, Europe and elsewhere overseas. IBM and Research In Motion also have unveiled new Lotus collaboration software and developer tools for RIM's BlackBerry platform.

"The new Lotus collaboration features and developer tools on the BlackBerry platform will deliver productivity beyond the office, extending IBM software and services so that individuals can access all of the resources they need to keep their business moving, anytime, anywhere," said Bob Picciano, general manager of IBM Lotus Software.

Targeting the Mobile Web

Verizon will provide its 85 million U.S. subscribers with access to IBM's Lotus Notes and Domino offerings. Orange expects to deliver Big Blue's collaboration software for mobile devices to its 113 million customers across Europe.

Both carriers have agreed to certify support for IBM Lotus Notes Traveler software, which Big Blue says is designed to wirelessly replicate Lotus Notes e-mail, calendaring and personal information management on select smartphones. Samsung has agreed to support IBM software to enable its smartphone users to manage Lotus Notes e-mail, calendars and address books on the go.

The collaboration capabilities for Blackberry users include mobile access to IBM Lotus Symphony files based on the OpenDocument format. IBM and RIM said that similar presentation and spreadsheet capabilities are in the works. Also on tap is enhanced IBM Lotus Connections functionality for gaining access to activities, blogs and communities.

Blackberry users also will gain access to Big Blue's Web 2.0-based team software. Called IBM Lotus Quickr, the application helps individuals find, access, share...

Thu, 22 Jan 09
Whew! Inauguration Strained Web and Cell Phones
http://www.newsfactor.com/story.xhtml?story_id=64179
Inauguration Day is over. Cell-phone networks and the Web are still standing, but the coverage of such a huge event may never be the same.

On the Web, new records were set for news and other sites as the medium adjusted to enormous demands for coverage. Akamai Technologies said Tuesday was "the largest day ever for the delivery of concurrent live streaming" over its platform, which is used to provide expandable video-streaming capacity for many large Web sites.

At 12:15 p.m. EST, just as the oath of office was being taken, Akamai reported a peak of more than seven million simultaneous streams, delivering more than two terabits per second.

'Just the Beginning'

Robert Hughes, executive vice president of global sales at Akamai, said the record number of streams was due, in part, to the event occurring during workday hours and being watched in offices. "This is just the beginning of what is possible when broadcasting live to audiences around the world," he said.

CNN.com Live served 25 million video streams through 12 hours yesterday, blasting its previous record of 5.3 million streams over 24 hours on Election Day. But the cable news network couldn't accommodate everyone, so there was an online "waiting room" that delayed requests for video streams for as long as 20 minutes. Similarly, social networks Twitter and Facebook also reported record traffic.

On CBSNews.com's Political Hotsheet, James M. Klatell wrote that the "much talked-about online video coverage of the event almost ground to a halt." He added that perhaps "we're not as far into the Internet age as we thought, because for the 20 or so minutes surrounding the big moment, it was hard, if not impossible," to watch it live online. He reported that CBSNews.com experienced streaming difficulties around the time of the swearing-in because of the volume.

Cell Networks Survived

The cell-phone...

Thu, 22 Jan 09
Heartland Data on Cardholder Transactions Breached
http://www.newsfactor.com/story.xhtml?story_id=64178
Heartland Payment Systems on Tuesday revealed it was the victim of a system security breach. The hack occurred in 2008, and Heartland believes the intrusion has been contained.

According to the company, no merchant data or cardholder Social Security numbers, unencrypted personal identification numbers (PIN), addresses or telephone numbers were involved in the breach.

Robert H.B. Baldwin Jr., Heartland's president and CFO, said the company discovered suspicious activity last week and immediately notified federal law-enforcement officials as well as the payment card brands.

"We understand that this incident may be the result of a widespread global cyber fraud operation, and we are cooperating closely with the United States Secret Service and Department of Justice," Baldwin said.

250,000 Companies at Risk

Heartland delivers credit/debit/prepaid card processing, payroll, check management, and payments solutions to more than 250,000 business locations nationwide.

It discovered the breach after Visa and Mastercard reported suspicious activity surrounding processed card transactions. Heartland engaged forensic auditors to conduct an investigation that uncovered malicious software compromising data on Heartland's network.

Heartland said it immediately took steps to secure its systems. Heartland is also implementing a next-generation program designed to flag network anomalies in real time and enable law enforcement to apprehend cybercriminals.

"Heartland apologizes for any inconvenience this situation has caused," Baldwin said. "Heartland is deeply committed to maintaining the security of cardholder data, and we will continue doing everything reasonably possible to achieve this objective."

An Expensive Attack

Michael Argast, a security analyst at Sophos, said the Heartland breach may not be as bad as it looks -- it may be worse. This is going to be a painfully expensive experience for Heartland, he said, because the costs don't stop at disclosure, lack of good faith with merchants, or regulatory penalties. The cost of securing Heartland's environment and fixing the data loss could run into the millions or...

Thu, 22 Jan 09
Online TV Sites Battle for Viewers
http://www.newsfactor.com/story.xhtml?story_id=64169
On TV, content is king. But on the Web, community may reign supreme. Throughout television history, the way to lure most viewers was to air the best shows. It doesn't necessarily work that way on the Web, where many shows can seen on multiple sites.

Take the recent announcement by CBS that it would begin airing shows like Showtime's Dexter and Sony Pictures Television's Bewitched on TV.com, CBS's online site for full-length video. But none of the more than 1,000 new programs are exclusive to TV.com. And the episodes of Bewitched, the classic sit-com featuring the nose-wrinkling witch Samantha, are already on rival Hulu, the joint site of NBC Universal and News Corp. "Every major studio right now is following a nonexclusive strategy" online, says Arash Amel, senior analyst with London-based media researcher Screen Digest. "The question for these sites is beginning to be, 'how do you differentiate yourself beyond the content you have?' "

The answer for TV.com and others is to encourage users to form a community. Host sites including TV.com, Joost, Sling.com, Veoh, Fancast, and Hulu are letting users post reviews, build profile pages, form fan groups, vote in interactive polls, and share activity logs with friends.

Boosting Advertising Value

Like newspapers and other media outlets hoping social networking elements will foster loyalty among users, TV sites want to find ways to keep viewers on the site longer and get them to recruit friends. It's too early to tell what impact the new features will have on the bottom line, but the aim is to entice more content producers to put programming on their sites -- and to boost the value to advertisers.

Building online communities for video sites has been tried before. The standard-bearer for online video, Google-owned YouTube, came into prominence partly because of its focus on community. Its multitudes...

Thu, 22 Jan 09
Computer Users Aren't Helpless Against Attacks
http://www.newsfactor.com/story.xhtml?story_id=64164
Dear Action Line: My computer has gotten so slow it's useless, and the repairman said it's "infected with malicious code," which he took off of there. I need this computer for my business and want to know how such code can be kept out of it. -- N.P., Tulsa.

The folks at US-CERT, Homeland Security's Computer Emergency Readiness Team, say computer hackers and attackers can corrupt types of files that you would recognize and typically consider safe, so you should take precautions when opening any file.

Corruptible files: These include documents created by word processing software, spreadsheets or image files. After corrupting them, attackers distribute them through spam or files turned up by Internet searches.

US-CERT: When corrupting files, attackers take advantage of vulnerabilities they have discovered in the software that allow them to insert and execute malicious scripts or code without being detected. These vulnerabilities involve specific software on the computer's operating system. This is an area where US-CERT is very active. It investigates software vulnerabilities and publishes security advisories through its National Cyber Alert System. Go to tulsaworld.com/USCERT, where you can sign up to receive these alerts and the "patches" that fix them. Recent patches for Oracle, Microsoft, BlackBerry and Cisco were offered Tuesday.

Malicious code problems: "Malicious code" includes viruses, worms and "Trojan horses," and the range of their consequences varies. They are designed to interfere with your computer's ability to process information by consuming memory or bandwidth, causing your computer to become significantly slower or to freeze; installing, altering or deleting files; giving attackers access to files; or using computers to attack other computers, waging "denial-of-service attacks."

Protect your computer: Use and maintain anti-virus software that recognizes and protects your computer from known viruses, detecting and removing them before they do damage. As attackers are continually...

Thu, 22 Jan 09
Web Grief: Funeral Webcasts Gain in Popularity
http://www.newsfactor.com/story.xhtml?story_id=64162
Schoedinger Funeral and Cremation Service has taken the business of grief high-tech: It's one of a growing number of funeral service providers to embrace the Web.

Schoedinger in central Ohio is offering live Web streaming and archived online video for use by military personnel overseas and others who can't be present for a loved one's funeral.

It's a way for mourners to take part in the experience without the time and expense of a long-distance trip, especially one arranged on short notice.

"This just allows people to share in the grief and share in the grief experience with everyone," said company President Michael Schoedinger.

The family organizing the funeral controls who has access to the private Web site used for broadcasting. The company offers the service for free but eventually may charge a fee to cover its costs, Schoedinger said.

Funeral directors say better technology and cheaper equipment have prompted more funeral homes to offer webcasting and videotaping services nationwide.

It's also been more appealing as the Internet has become part of everyday life for many Americans domestically and abroad, said Ellery Bowker, the president of North Carolina-based Director's Advantage, which specializes in technological products for the funeral industry and debuted its webcasting service last year.

The service allowed one soldier in Iraq to watch his grandmother's funeral in North Carolina, Bowker said. In another case, comrades of a soldier who died overseas were able to view his memorial in the U.S.

The use of funeral webcasting is an emerging trend but hasn't been tracked statistically, though some companies have offered those services for years, said Jessica Koth, a spokeswoman for the National Funeral Director's Association.

Webcasting companies are also jumping in, offering packages to funeral homes that include tripods, cameras with microphones, and cables and cords, either for lease or purchase outright. Some ceremonies can even be webcast...

Thu, 22 Jan 09
Historical Photos Find New Life on Web Sites
http://www.newsfactor.com/story.xhtml?story_id=64160
In barely 100 years, photography has gone from a magical, even mystical process, to an afterthought. Nothing better captures how much of an afterthought photography is today than the banal miracle that is Flickr, the photo-sharing site owned by Yahoo, which has more than three billion photographs online. Billion.

"Flickr is to photography what the Pacific Ocean is to water, what Times Square is to humanity," the cultural critic Luc Sante wrote in an essay for the January-February 2008 issue of Photograph magazine.

"Flickr is a great leveler, sweeping away distinctions between amateurism and expertise, art and record-keeping."

Against this backdrop, there are the relics from the earlier age of photography -- historical photographs that have been preserved in national libraries and archives or photo agencies and news media operations. Their relative scarcity alone can make them seem like treasures.

They, too, are finding their way onto the Internet. Compared with the stream of photographs being uploaded (an estimated three million a day on Flickr alone), the historical material can seem a mere trickle. Yet over the past year there have been important new efforts to put these classics online, both to find new audiences for material typically used by researchers and to use those audiences to breathe new meaning into photographs from long ago.

Last month, in what is believed to be the largest donation online of "free" photographs -- that is, unrestricted for commercial or noncommercial use -- the German national archive uploaded nearly 100,000 historical photographs to the Wikimedia Commons, the virtual archive for material used in Wikipedia articles.

Wikipedia articles include only photographs that have been licensed in the freest way, and there must be a stipulation that the copyright holder either agrees to such terms or that no one holds a copyright.

It is for this reason that articles on Wikipedia about...

Thu, 22 Jan 09
Security Software: An Intriguing Corner of Tech
http://www.newsfactor.com/story.xhtml?story_id=64155
Savvy technology investors believe if there is any bright spot in tech stocks, which got hammered in 2008 along with the rest of the stock market, it is the Internet security sector -- the outfits that provide software and related services that protect computer networks against viruses and other types of cyber attacks.

"Shares of tech companies in the security sector outperformed most other tech sectors in 2008," says Richard Parrower, managing director at J&W Seligman, who heads its Global Technology Fund. This group tops the list of tech industries that Parrower favors. Specifically, he's bullish on Symantec, which provides software that protects computer network infrastructure; McAfee, a leading developer of virus protection and encryption software; and Check Point Software, which makes protective firewall systems.

The 2009 outlook for the broader tech sector isn't looking any better than last year's unspectacular showing. One reason: The moribund corporate spending in 2008 on information technology is expected to spill into 2009. According to a survey conducted by Morgan Stanley among 150 corporate info tech executives, spending will slow, from 4.9 percent in 2008 to 2.3 percent in 2009. That has prompted Morgan Stanley tech analyst Adam Holt to cut his earnings forecasts on tech companies he follows. Holt expects 2009 earnings by tech companies to decline some 20 percent in 2009.

Nonetheless, analysts expect the security software companies to outperform the tech pack again this year.

Shares of Symantec, McAfee, and Check Point are still way undervalued, says Seligman's Parower. He sees their stock prices climbing at least 20 percent over the next 12 months.

Symantec's Unseen Strengths

In spite of the market's turbulence, stocks of the three firms have managed to demonstrate staying power. Symantec has risen to 13.50 a share on Jan. 15, from a 52-week low of 10.50 on Nov. 20, 2008. But that is...

Wed, 21 Jan 09
FCC Probes Comcast Treatment of VoIP Competitors
http://www.newsfactor.com/story.xhtml?story_id=64177
The Federal Communications Commission is investigating Comcast, the nation's largest cable-TV operator, to determine if the company is discriminating against competing Voice over Internet Protocol providers.

Last summer, the FCC ordered Comcast to stop blocking users' access to online content and services. Comcast was also required to fully disclose details of both old and new network-management practices.

An FCC letter to Comcast on Sunday asked the company to justify its treatment of similar services from competing providers. Comcast has until Jan. 30 to respond and said it is reviewing the letter.

"We seek clarification with respect to an apparent discrepancy between Comcast's filing and its actual advertised practice," wrote Kathryn Zachem, vice president of regulatory affairs for the FCC, and Matthew Berry, FCC general counsel.

The FCC's Concern

Zachem and Berry took exception with a Sept. 19 submission in which Comcast said that if a consumer uses 70 percent of his provisioned bandwidth for 15 minutes or more when his neighborhood Cable Modem Termination System (CMTS) node has been near capacity for a period of 15 minutes or more, that consumer loses priority when routing packets through congested portions of the network.

If a consumer them places a VoIP call along the congested route, Comcast said customers may find that VoIP calls "sound choppy." Comcast didn't distinguish between the performance of its service and competing services in its Sept. 19 submission. However, the FCC thinks Comcast's Web site suggests that a distinction exists.

The FCC pointed to a portion of Comcast's Web site that reads, "Comcast Digital Voice is a separate facilities-based IP phone service that is not affected by this [new network management] technique." Comcast's Web site adds, "VoIP providers that rely on delivering calls over the public Internet ... may experience a degradation of their call quality at times of network...

Wed, 21 Jan 09
Cell Phones in D.C. Jammed by Inauguration Traffic
http://www.newsfactor.com/story.xhtml?story_id=64176
The history-making inauguration of President Barack Obama also was a cell-phone test. Wireless networks braced for an onslaught of photos, text messages, video and voice communications from the millions of people attending the inauguration.

Initial reports were that cell phones in the metropolitan Washington, D.C., area were buckling under the strain, with some voice communications having trouble getting through, although text messages were doing fine.

Boosting Capacity

The largest wireless carriers, AT&T and Verizon Wireless, had boosted capacity, with AT&T reporting it spent about $4 million. A Verizon spokesperson, Debra Lewis, told news media that mobile Web, e-mail and Twitter short messages were good uses of the bandwidth, and the company's D.C. network was experiencing traffic up to five times its normal call volume. Even so, she said, most of the calls were going through on the first try.

AT&T and T-Mobile USA reported congestion on some cell towers, and said they redirected traffic to less-crowded towers.

CTIA, an industry association for wireless companies, noted a variety of steps that carriers took to address the anticipated traffic. These include adding new radio channels to supplement existing cell sites, creating additional network capacity by adding portable sites, expanding backhaul capacity and connections with the Public Switched Telephone Network, and expanding in-building wireless coverage in key buildings.

Steve Largent, CTIA's president and CEO, said earlier that even with more capacity, there could be a traffic jam if everyone used the system at the same time.

'Text, Don't Talk'

Largent had suggested users text instead of making voice calls, and hold off sending photos or video. In fact, he listed several catchphrases that could become standard behavior as mass events become telecommunications crunches.

They included "Text, Don't Talk," "Snap and Save, Send Later," and, to avoid losing track of your friends or family, "Have a Back-Up Plan," such as an agreed-upon...

Wed, 21 Jan 09
iPhone Users View Inauguration with Streaming App
http://www.newsfactor.com/story.xhtml?story_id=64175
For those people who could not be part of the historic presidential inauguration Tuesday in the nation's capital -- or could not be near a television set to watch it live -- Ustream had another suggestion: Use your iPhone and its Ustream Viewing Application.

Ustream made its application available for the inauguration of President Barack Obama just in time, according to the company.

The Mountain View, Calif.-based company's application, which was pending approval but is available now on Apple's App Store, allowed people to use their Wi-Fi connection to watch a live feed of Obama's inauguration on their iPhone.

"The new Ustream iPhone viewing application allows anyone with an iPhone or a second-generation iPod touch to watch Ustream live streams while on the go," said John Ham, Ustream's founder and chief executive officer.

The application includes a slew of live and recorded broadcast streams and allows users to connect with others viewing the same feed. The application works only with Wi-Fi connections, so no 3G or streaming at the edge is currently available.

Brad Hunstable, Ustream's cofounder and president, said the iPhone application brings the full power of the Internet to mobile phones, and people can now use the app to stream everything from music concerts to out-of-town high-school football games live.

Patriotic Roots

While more than a million people were in the nation's capital to participate in the inaugural events, others relied on iPhones and iPod touch devices to watch Obama sworn in as president.

"We were thrilled to join the App Store and develop a great application, which enabled millions of people around the world to watch and chat live during the inauguration," Ham said. "Now anyone can be part of the global community around shared live experiences."

By streaming the inauguration, Ustream's founding team is sticking to its reason for forming the company. In...

Wed, 21 Jan 09
Cisco To Enter Virtualization-Server Market
http://www.newsfactor.com/story.xhtml?story_id=64174
Cisco Systems is planning a product that could turn the technology industry on its head and put the company in competition with longtime partners like Hewlett-Packard and IBM.

According to a report in The New York Times, Cisco is moving into the market for virtualization servers. Cisco makes 65 percent of its $40 billion annual revenues from switches and routers. Servers are a lower-margin play, but would open up an end-to-end opportunity for Cisco to better compete in the unified-communications space.

Padmasree Warrior, Cisco's chief technology officer, told the Times that she sees servers not as a new market for the company, but as a market transition. Warrior also downplayed any conflicts of interest with Cisco's channel partners, though analysts said the move could shake up the market.

"Our vision is, how do we virtualize the entire data center?" Warrior told the Times. "It is not about a single product. We will have a series of products that enable us to make that transition." Cisco could roll out its first product as soon as March.

An Enormous Opportunity

Virtualization is the driver behind Cisco's interest in the server market. Virtualization is a technique to allow multiple operating systems to run on a single physical machine while maintaining distinct hardware profiles. In effect, the host operating system executes several guest operating systems.

According to IDC, the virtualization-services market will grow from $5.5 billion in 2006 to $11.7 billion in 2011, as data-center managers struggle to address power and cooling issues and the need for increased capacity.

"Currently, the majority of the services opportunity lies in supporting customers' initial implementations of virtualization," said Matt Healey, IDC's senior research analyst for software and hardware support services. "However, over the next several years IT consulting and systems integration will begin to become the dominant opportunity as the technology becomes much more...

Wed, 21 Jan 09
Microsoft Tweaks Hardware Ratings For Windows 7
http://www.newsfactor.com/story.xhtml?story_id=64173
Microsoft says it has tweaked its Windows Experience Index (WEI) for Windows 7 to take into account new PC hardware configurations. Introduced with Windows Vista, Microsoft's PC rating system is compiled by measuring the relative capabilities and configuration of each machine's components.

The goal of WEI is to help consumers buy hardware, programs and software matched to their computer's score. The WEI does not measure the interactions of components under a software load, but rather characteristics of the hardware, noted Microsoft Senior Vice President Steven Sinofsky.

"As such it does not -- nor cannot -- measure how a system will perform under your own usage scenarios," Sinofsky said. "Thus the WEI does not measure performance of a system, but merely the relative hardware capabilities when running Windows 7."

WEI Scoring

For Vista and Windows 7, the five areas scored include processor, memory, general desktop graphics, gaming graphics, and primary hard disk.

"The overall Windows Experience Index is defined to be the lowest of the five top-level WEI subscores, where each subscore is computed using a set of rules and a suite of system assessment tests," said Michael Fortin, an engineer in Microsoft's Windows Core Operating Systems Division.

PC buyers will be able to follow some general guidelines to understand the experiences that a PC with a given score range can be expected to deliver. "These Vista-era general guidelines for systems in the 1.0, 2.0, 3.0, 4.0 and 5.0 ranges still apply to Windows 7," Fortin said.

Though the scoring areas for Windows 7 are the same as Vista, the actual rules for scoring devices have changed "to reflect experience and feedback comparing closely rated devices with differing quality," Fortin explained. This makes the WEI more indicative of actual use, he said.

New Levels

Moreover, scoring levels 6.0 and 7.0 have been added to Windows 7 --...

Wed, 21 Jan 09
Intel Slashes Prices for Processors Amid Slow Sales
http://www.newsfactor.com/story.xhtml?story_id=64172
In response to a down economy and a slowing PC industry, Intel has slashed the prices of its processors. The chipmaker cut the price of its Core 2 Quad chips by up to 40 percent and continued the theme with less-dramatic price cuts across its line.

Specifically, Intel's mobile Celeron chips and single-processor Xeon chips also saw price cuts. The decision to slash prices puts Intel's processors closer to par with rival AMD's products, but may put strain on the company to meet its price-performance goals.

"Price cuts like this are a natural response to what's happening in the greater economy," said Charles King, principal analyst at Pund-IT. "When consumers stop consuming, the shock ripples all the way down the supply chain."

Reviewing Gartner's Predictions

In the fourth quarter of 2008, the worldwide PC industry suffered its worst growth rate since 2002 as worldwide shipments totaled 78.1 million units, a 1.1 percent increase from the fourth quarter of 2007, according to preliminary results Gartner published on Jan. 15. For the year, worldwide PC shipments totaled 302.2 million units, a 10.9 percent increase from 2007.

"The United States experienced steeper-than-expected shipment declines due to the recession. The Europe, Middle East and Africa (EMEA) region was also affected by the economic slowdown across key countries," said Mika Kitagawa, principal analyst for Gartner's Client Computing Markets group. "Asia/Pacific recorded the worst shipment growth since Gartner started its PC statistics research. Latin America met expectations, but its growth was much lower than in the past."

Good News for Consumers

King said component makers like Intel, AMD and Seagate face a quandary when the demand for end products decline. If they do nothing, he said, they end up with a lot of products sitting idle on their shelves. If they cut prices, they potentially cut profits.

"The other complexity here is that...

Wed, 21 Jan 09
Android Advances as T-Mobile Takes G1 To Europe
http://www.newsfactor.com/story.xhtml?story_id=64150
With the World Mobile Congress in Barcelona coming up next month, new developments around the Android open-source mobile platform are beginning to build expectations.

On Monday, Deutsche Telekom's T-Mobile announced that it will soon begin selling its G1 Android phone in several European countries. The phone has been available for the last few months only in the United States and Great Britain. The first countries on the list are the Netherlands, the Czech Republic, Austria, Germany and Poland.

$1.33 in Germany

The initial response to the G1 has been very strong, with hundreds of thousands sold in the U.S. by the end of 2008. T-Mobile Chief Executive Hamid Akhavan has described the phone as the most successful ever sold in this country. According to news reports, the G1 will be offered for the subsidized price of $1.33 (EU1.03) in Germany, along with a two-year contract. In the U.S., it sells for $179 with a two-year contract.

Except for an Android phone released by a small manufacturer for the Australian market, the G1 has been the only Android device on the market. But that will soon change. Samsung, which had announced that it would bring out an Android phone, is now saying the device will come out by the second quarter of this year.

Avi Greengart, an analyst with industry research firm Current Analysis, said the list of companies intending to release Android phones is more efficiently described by citing those who won't have Androids -- Apple, Nokia and Research in Motion. "It seems that it's everybody but these three," he said.

He added that "all the biggest licensees are hedging their bets" by releasing Android products. Greengart pointed out that Microsoft and Symbian are two of the biggest potential losers if Android becomes a major platform. Given that there were no major Android announcements at the...

Wed, 21 Jan 09
Big Bets on All-in-One Desktops
http://www.newsfactor.com/story.xhtml?story_id=64135
After having successfully stimulated consumer demand in low-cost notebook computers, Taiwanese computer makers are now betting on the next killer device -- the all-in-one (AIO) desktop.

Asustek, Acer, Micro-Star and BenQ are among companies set to introduce their first such offerings by this quarter.

These AIO PCs -- one-piece desktops in which computer components are built into the monitor -- will come with more affordable price tags, just like their low-cost laptop counterparts, and are expected to woo more budget users.

Asustek again took the lead by debuting a low-priced AIO desktop called the Eee Top last November. The 15.6-inch model, which boasts a price tag of only NT$18,900 (RM1,990), has a touch-screen, allowing Web navigation with a finger tip.

Other features include Windows XP Home operating system, USB ports, Gigabit LAN, wireless LAN, one gigabyte of random access memory, a 160GB hard drive, card reader and built-in camera.

AIOs are not new, with notable machines such as Apple's iMacs and Hewlett-Packard's TouchSmart already available in the market for some time. But their steep pricing of as high as US$2,000 has been a turnoff. Now, a combination of new features, including touch panels and improved industrial designs, and lower price points may help them win consumers back.

"A simple-to-use interface and affordability are keys to a wider user acceptance for AIOs," said Eddie Wu, general manager of Microsoft Taiwan.

While traditional desktop growth has slowed, the introduction of more affordable models could lead a new wave of growth, he pointed out.

For Asustek, it is banking on the Eee Top to lead the way. Its chairman Jonney Shih is pinning hopes on the Eee Top to be another best-selling gadget, riding on the company's earlier success with the Eee PC -- a lowcost notebook introduced late 2007 -- which has prompted rivals Dell, HP and Acer to...

Wed, 21 Jan 09
Technology To Stop Phone Use in Cars Isn't Perfect
http://www.newsfactor.com/story.xhtml?story_id=64134
Many parents would love to be able to give their teenagers a cell phone that couldn't be used while driving. Now some inventors say they have come up with ways to make that possible, but they appear to be relying on wishful thinking.

One product to hit the market, $10-a-month software by Dallas-based WQN Inc., can disable a cell phone while its owner is driving. It uses GPS technology, which can tell how fast a person is traveling. But it can't know whether the person is driving -- and therefore it can needlessly lock a phone. WQN, which sells cell phone and Internet security software under the name WebSafety, says it signed up about 50 customers for its first month of service.

Aegis Mobility, a Canadian software company, plans to release a similar Global Positioning System-based product this fall, known as DriveAssistT. Aegis is in talks with big U.S. wireless phone carriers, which would have to support the software and charge families a fee of probably $10 to $20 a month, said David Teater, the company's vice president.

The DriveAssistT system will disable a phone at driving speeds and send a message to callers or texters saying the person they are trying to reach is too busy driving. But because that person could be a non-driving passenger, the approach is a blunt tool.

Other product concepts that don't involve GPS systems have their own flaws. As a result, Parry Aftab, who advises families on technology and safety, suggests worried parents find another way to stop their kids from calling or texting while driving. Parents are better off taking away a child's cell phone if it is used improperly, she said.

"More and more, we see any solution is, in large part, education and awareness, parents getting involved," said Aftab, executive director of WiredSafety.org. Driving and...

Wed, 21 Jan 09
Video Search Opens New Frontier on Internet
http://www.newsfactor.com/story.xhtml?story_id=64133
Faced with writing a school report on an Australian animal, Tyler Kennedy began where many students begin these days: by searching the Internet. But Tyler did not use Google or Yahoo. He searched for information about the platypus on YouTube.

Similarly, when Tyler gets stuck in one of his favorite games on the Wii, he searches YouTube for tips on how to move forward.

While he favors YouTube for searches, he said he also turned to Google from time to time.

"When they don't have really good results on YouTube, then I use Google," said Tyler, who is 9 and lives in Alameda, California.

Tyler's way of experiencing the Web -- primarily through video -- may not be mainstream, but his use of YouTube as his favorite search engine underscores a shift that is much broader than the quirky habits of children.

The explosion of video content on YouTube and other sites is quickly transforming online video from a medium strictly for entertainment and news into one that is also a reference tool. As a result, video search on YouTube and other sites is rapidly becoming a new entry point into the Web, one that could rival mainstream search for many types of queries.

"There are an increasing number of people who are doing video searches to supplement and improve what they do in their offline lives," said Suranga Chandratillake, the chief executive of Blinkx, a video search engine.

With inexpensive cameras flooding the market and a proliferation of Web sites now offering seemingly unlimited numbers of clips, it has never been easier to create and upload video. You can now find an online video on virtually any topic. Web videos teach how to grout a bathtub, offer reviews of the latest touch-screen phones and give you the feel of walking across the Ponte Vecchio in...

Wed, 21 Jan 09
Obama Jobs Plan Has Big Tech Role
http://www.newsfactor.com/story.xhtml?story_id=64129
One way for governments to create jobs in a hurry is to pour money into old-fashioned public works projects like roads and bridges. President-elect Barack Obama's economic recovery plan will do that, but it also has some ambitious 21st-century twists.

The $825 billion stimulus plan presented by Democrats in the House of Representatives on Thursday called for $37 billion in spending in three areas: $20 billion for computerizing medical records, $11 billion for smarter electrical distribution grids and $6 billion to expand high-speed Internet access in rural and underserved communities.

A study published this month, which was prepared for the Obama transition team, concluded that putting $30 billion into those three areas could produce more than 900,000 jobs in the first year. The mix of proposed spending is different in the House plan, but the results would be similar, said Rob Atkinson, president of the Information Technology and Innovation Foundation, which did the study.

Beyond creating jobs, advocates say, government investment in these technology fields holds the promise of laying a lasting foundation for more innovation and efficiency in commerce, while helping to create new digital industries.

"The appeal of these kinds of investments is that you not only get the stimulative effect, but also build a platform for productivity gains and long-term growth," said Blair Levin, a former senior official at the Federal Communications Commission and a member of the Obama transition team on technology policy.

During the campaign and afterward, Obama has championed policies to promote electronic health records, better broadband networks, and power grids that use computers and sensors to fine-tune electricity use. But the standard for including any initiative in the economic recovery plan is that it be "timely, targeted and temporary," while also creating jobs, Levin said Wednesday in an address to the Congressional Internet Caucus, an advisory group....

Wed, 21 Jan 09
Broadband Bill Disappoints Nearly Everyone
http://www.newsfactor.com/story.xhtml?story_id=64127
The initial stab by the U.S. government to promote high-speed Internet access has something to disappoint nearly everyone.

Most communications companies and consumer advocacy groups say the $6 billion in broadband stimulus measures contained in the House Democrats' $825 billion economic recovery package are a good first step. But they warn that the money won't be nearly sufficient to meet incoming President Barack Obama's objective of providing affordable high-speed Internet access to all U.S. households.

"I was incredibly impressed how quickly the House moved," says Shirley Bloomfield, senior vice-president for federal relations at Qwest Communications, a Denver-based communications provider that serves 14 Western states. "They've got some good concepts. But $6 billion is not going to get you to ubiquitous broadband."

Job-Creation Effectiveness Questioned

Communications providers and various advocacy groups have pegged the cost of creating universal broadband in the tens of billions of dollars. A December 2008 report by the Free Press, an organization devoted to reforming the media, estimated that a broadband infrastructure development program would cost $44 billion over three years. Similarly, the Information Technology & Innovation Foundation [ITIF], a Washington [D.C.] think tank, projected that providing Internet service to much of the unserved territories in the U.S. would cost about $12 billion. "It's definitely not enough money," says Robert Atkinson, founder of the ITIF.

Moreover, some communications providers warn that the package as designed in the House bill may get bogged down by too much government bureaucracy, and fail to create jobs quickly -- a key objective of the federal stimulus. Under the House Democrats' plan, approximately $3 billion in broadband stimulus would be administered by the Rural Utilities Service of the Agriculture Dept., while another $3 billion in grants would be awarded by the National Telecommunications & Information Administration, a small bureau of the Commerce Dept.

One big issue is that...

Wed, 21 Jan 09
Boost's $50 Cell Service May Start Price War
http://www.newsfactor.com/story.xhtml?story_id=64100
Boost, the prepaid division of Sprint, is offering unlimited calling -- voice, text, Web browsing and more -- for just $50 a month.

The new offering on Sprint's older, slower phone network is 50 percent less than national carriers charge, prompting some analysts to wonder if a price war might be brewing. In a research note sent to investors, Bernstein Research analyst Craig Moffett pointed out that $50 marks "a new low in the wireless market."

Boost's aggressive pricing could prove challenging for big carriers, including parent Sprint, already being pinched by the U.S. economy. For consumers, Boost's $50 plan could come as welcome relief, says Walter Piecyk, a telecom analyst with Pali Research. "The pricing could not come at a better time, given the economic weakness that is driving increased interest in cheaper unlimited-rate plans," he says in a research note.

Prepaid, or "pay as you go" plans, don't bind customers to a contract.

Matt Carter, Boost's president, downplayed the notion that the $50 plan could hurt Sprint.

Boost doesn't offer as many advanced services as Sprint, including GPS navigation. Carter says mobile Web browsing is also "a lot slower" than it is with Sprint, which has a new 3G network.

Boost uses the old Nextel network called "IDEN," famous for its "push-to-talk" service.

Even with those limitations, Carter predicts the $50 plan will be a big hit, especially among those who might not normally consider prepaid as an option.

Unlike most prepaid plans, the $50 plan doesn't have regional restrictions.

And Boost's plan includes all taxes except state sales taxes. Big carriers typically charge separately for taxes, which can add 20% or more to monthly bills.

Tue, 20 Jan 09
YouTube Showcases New Video Download Feature
http://www.newsfactor.com/story.xhtml?story_id=64149
YouTube is using Barack Obama's inauguration to showcase its new video downloads. The company this week began offering downloadable videos through its ChangeDotGov channel.

The new feature allows downloading videos to computers and mobile devices rather than streaming a video online. A "Click to download" message is under Obama's weekly radio addresses.

This is the first time YouTube has offered such an option, which gives users H.264 files. These files are standard for video compression, equivalent to MPEG-4, and deliver high-quality video.

A Strategic Move

Until now, users have had to use third-party software to access a video from Google's service, so the new YouTube feature makes downloading easier. Some YouTube videos can be downloaded by clicking on a link on YouTube's site and, because of the high-quality file, can also be seen through other portals, including Apple's iPhone and Apple TV.

Offering downloads of some of its videos is a strategic move for YouTube, which has seen an increase in online streaming in the last year.

In November alone, 146 million people watched videos online, streaming a total of 12 billion video clips, according to comScore. For YouTube, the number of videos streamed increased 17 percent from March 2007 to November 2008.

Adding the new feature to the Web site could be just the step the company needs to make its videos available in a different way

Lawrence Lessig, an Internet law professor at Stanford University's Center for Internet and Society program, first blogged about the feature on his personal blog, saying the move was an important development for YouTube.

Lessig said there have always been hackers to get YouTube videos, but YouTube's step in sharing its videos is "valuable." Asked if he believes this is a one-time offering, Lessig said: ""My expectation is the practice will expand with selected partners."

Lessig also said YouTube...

Tue, 20 Jan 09
Despite Focus on Steve Jobs, Apple Remains Strong
http://www.newsfactor.com/story.xhtml?story_id=64148
Even as Apple is preparing to announce its first-quarter results for the fiscal year 2009, rumors, speculation, analysis and finger-pointing around Apple CEO Steve Jobs' health issues -- and the disclosure of them -- continue.

The media has reported on Jobs' illness -- what little it could discern by his bodily appearance -- and even his supposed untimely death. The latter turned out to be a misprinted obituary, but his appearance turned out to be a true revelation of a mystery that is still unfolding.

Jobs wrote an open letter just before Macworld that the company hoped would quiet the speculation. He acknowledged that he had been losing weight during 2008, and said the doctors had determined a hormone imbalance was robbing him of the proteins his body needs. He went on to say that the remedy was simple and treatment was under way. And he said he would continue as CEO of Apple during his recovery.

Steve's Sudden Change

But last week, Jobs changed his tune as curiosity over his personal health became an even bigger distraction. He also confessed he had bad news from his doctors: His health-related issues were more complex than he thought.

"In order to take myself out of the limelight and focus on my health, and to allow everyone at Apple to focus on delivering extraordinary products, I have decided to take a medical leave of absence until the end of June," Jobs wrote in an open letter. Apple COO Tim Cook is temporarily stepping into Jobs' shoes.

Jobs is expected to remain on the board of The Walt Disney Company despite his six-month leave from Apple. He will stand for reelection in March.

But the greater speculation is about Apple's immediate present -- and its future. The company's stock has taken a hit ahead of earnings.

The technology world needs...

Tue, 20 Jan 09
Low-Cost, Open-Source Web Tablet Comes to Life
http://www.newsfactor.com/story.xhtml?story_id=64147
The growing category of very inexpensive laptops, spearheaded by netbooks and One Laptop Per Child's vision of the $100 laptop, may soon have another offering.

TechCrunch's Michael Arrington, who voiced an open call last July for a "dead simple touchscreen Web tablet that boots right into the browser," costs $200, and is open source, has reported that a second -- and better -- prototype for such a device is now up and running. He calls it the CrunchPad, and others have described it as a netbook without the keyboard.

'Open Source the Specs'

In his original posting, Arrington asked for help in creating the new device. "Nothing fancy" like the $2,500 Dell Latitude XT, he wrote. "Just a MacBook Air-thin touchscreen machine that runs Firefox and possibly Skype on top of a Linux kernel." And, once built, he proposed to "open source the specs" so that anyone could build one.

Arrington said he wanted one to sit on his lap so he could easily and comfortably browse Web pages related to TV programs -- or, since the device would play Flash video, he could watch movies or TV shows from Hulu, YouTube or Joost. Music playing, video chatting, and e-mail would round out the capabilities. By focusing on the browser, Arrington said, the device could use very low-end hardware.

In August, Prototype A was built with an aluminum case "twice as thick as it needs to be," and performance that offered more potential than actual. "It barely booted," Arrington admitted, but it was enough of a demonstration that he knew he wanted one that worked well.

Now the project has a team lead, Louis Monier, the founder and chief technical officer of AltaVista and former head of eBay's Advanced Technology Group. And Prototype B is now ready.

'Browser as OS'

Prototype B sports a 12-inch, 1024x768 touchscreen,...

Tue, 20 Jan 09
Google 'Preferred Sites' Unclutters Search Results
http://www.newsfactor.com/story.xhtml?story_id=64146
Google may have slashed its budget for technology tinkering on engineers' pet projects, but that doesn't mean the company isn't seeking new ways to make its search-engine results better.

The company is experimenting with a search feature called Preferred Sites. Users can set Google Web search preferences to get search results that better match their needs and tastes.

Users fill in the sites they rely on the most, and results from those "preferred sites" will show up more often when they are relevant to a search query. The new feature affects searchers only when they are signed into a Google account, and the company promises other users won't see the customized search results or what preferred sites have been designated.

Earmarking Trusted Sites

Google suggested several ways users can take advantage of Preferred Sites. For example, they can add sites they trust for certain types of information, such as for sports scores, movie reviews, or health questions.

Searchers can also add local sites for news stories that are more relevant to them, like The Miami Herald if you live in Miami, Fla., or The Wall Street Journal. Google even lets searchers add their favorite blogs for news and information.

"Preferred sites is currently an experimental feature, and we're very interested in user feedback," a Google blog says. "If you have ideas about how to improve the feature, please let us know by posting in the Preferred Sites Discussion Group."

Getting Specific

Google said it relies on a user's Web history and other information from the user's Google account to suggest sites the engine thinks might be relevant. Searchers can select from these Google-developed suggestions or enter the URLs of any other sites.

Searchers can be as specific as they would like when adding preferred sites. For example, a user can add the entire CNN site at http://www.cnn.com...

Tue, 20 Jan 09
Silverlight Will Be Used To Stream Inauguration Ceremony
http://www.newsfactor.com/story.xhtml?story_id=64145
Technology companies are hoping President-Elect Barack Obama will spend millions on new IT bells and whistles for the U.S. government. In the meantime, however, a few companies, including Microsoft and YouTube, are jumping on Obama's high-tech bandwagon to make Inauguration Day available on the Web.

After winning the nod from the 2008 Olympics, Microsoft announced that the Presidential Inaugural Committee has selected its Silverlight technology for video streaming of the swearing-in ceremony at http://www.pic2009.org. Silverlight already streamed video of a Baltimore event on the whistle-stop tour that took Obama and Vice President-Elect Joe Biden to Washington, D.C., from Philadelphia.

"Microsoft is proud to be part of this event by helping to bring the inauguration activities online," said Brad Smith, Microsoft general counsel. "Just as during the campaign itself, Internet technology is enabling people around the world to participate more directly in historic events in new and exciting ways."

Silverlight, Not Flash

In August the 2008 Democratic National Convention used Silverlight to stream convention proceedings, including Obama's acceptance speech.

"This is good PR for Silverlight. There is a trend toward more direct outreach to people from the Internet," said Greg Sterling, principal analyst at Sterling Market Intelligence. "The Obama team has been very successful using new media and mobile and online tools, and I think that's going to continue."

There are many formats for streaming content, including Adobe Flash, a major competitor to Silverlight. So landing the deal to stream the Obama inauguration is a big win for Silverlight, according to Michael Gartenberg, vice president of mobile strategy for Jupitermedia.

"This shows that Microsoft is gaining some traction with its technology going forward," Gartenberg said. "Having said that, it's a real battle for them against entrenched standards like Flash. But this is a battle that will be fought stream by stream, one at a time."

YouTube Downloads

YouTube is making...

Tue, 20 Jan 09
IBM Offers Online Collaboration with LotusLive
http://www.newsfactor.com/story.xhtml?story_id=64144
Joining the parade of business software moving onto the Internet, IBM launched an online suite of services Monday at IBM Lotusphere 2009 in Orlando, Fla.

Called LotusLive, the new offering marries Lotus' capabilities with collaboration, social networking, and Web conferencing features that can extend outside a corporate firewall. It will enable users to create networks with customers and partners, store and share documents online, and get e-mail via the Web from any computer.

Skype, SAP, LinkedIn

The new hosted services are integrated with other software that IBM customers might use. Salesforce.com's customer-relationship software is tied into LotusLive, as are Research in Motion's BlackBerry phones, Skype video and voice communications, business management tools from SAP AG, and social-networking site LinkedIn.com. LotusLive users, for instance, can search LinkedIn for collaborators, then work with them via LotusLive.

A trial version of LotusLive has been tested by 15,000 users, according to IBM, although this is only a fraction of the 145 million licenses for Lotus Notes.

Business tools, especially those built around collaboration, are increasingly integrating their services into the cloud, as the Internet is known. Google, Microsoft and others have made similar announcements.

IBM has big hopes for LotusLive, saying it wants the online suite to become "your one-stop virtual office for all of your day-to-day business requirements." By sharing documents, meeting virtually with potential customers, and connecting with other companies such as suppliers, IBM said LotusLive can "reduce start-up time" and enable businesses to free up IT resources.

Collaborating, Conferencing, E-Mail

LotusLive's services are intended to integrate with each other, and to move beyond Lotus' current capabilities. For example, IBM said LotusLive Engage, an integrated suite of collaboration tools, is "not a new meeting service." Rather, it's "just a smarter one."

Online meetings can now include file storage and sharing, instant messaging, and chart creation in...

Tue, 20 Jan 09
'Updated' Worm Using Obama Spam To Spread Rapidly
http://www.newsfactor.com/story.xhtml?story_id=64123
A virus that is spreading with a vengeance is plaguing businesses in the new year. The Conficker worm, which caused havoc on Windows PCs in October, has come back to strike more than 3.5 million PCs in 24 hours under a new name, Downadup, according to security analysts.

The worm resurfaced earlier in the month, infecting Windows workstations and servers and causing a variety of problems for users.

Downadup consists of a family of network worms that are difficult to remove, especially when there is an infection inside a corporate network, according to F-Secure, a security company which first released warnings about the worm.

"First discovered in October 2008, Conficker, Kido or Downadup is a very sophisticated worm, but the updated version from two weeks ago is much more serious," said Jart Armin, a security specialist with HostExploit. "Essentially it becomes part of MS Windows services.exe, and then establishes an HTTP server from the infected PC."

Using the Inauguration

Armin added that the worm automatically generates hundreds of domain names to fool any tracking, but only one is the real site that downloads the malicious instruction set.

"It also enables replication via USB sticks and across office networks," Armin said. "It appears to be especially timed to take advantage of the holidays and lack of IT staff around."

Is there any help for victims of the Conficker? Some, according to security specialists.

One is to watch out for fake Barack Obama sites, according to F-Secure's blog. The company is seeing spam trying to use the presidential inauguration as a way to push spam and the Downadup-related activity.

E-mails have been sent around the world suggesting users follow links to Obama Web sites. Some fake Web sites that produce malware are store.greatobamaguide.com, store.superobamadirect.com and superobamaonline.com. And there are many more, according to F-Secure.

F-Secure has also posted the...

Tue, 20 Jan 09
EC Could Strip Internet Explorer From Windows
http://www.newsfactor.com/story.xhtml?story_id=64122
Microsoft violated European Commission rules by tying Internet Explorer to its market-dominating operating system, the commission said in a preliminary ruling. The EC said that tie shields Microsoft from head-to-head competition with rival Web browsers.

In a Statement of Objections (SoO) delivered to Microsoft last week, the EC said tying Internet Explorer to Windows "harms competition between Web browsers, undermines product innovation, and ultimately reduces consumer choice." In response, Microsoft said it's studying the document and remains "committed to conducting our business in full compliance with European law."

Distorting Competition

The EC's latest move is a direct response to a complaint by rival browser maker Opera, which alleged it was experiencing ongoing competitive harm from Microsoft's practices. In particular, Opera complained that Internet Explorer embraces new proprietary technologies that reduce compatibility with open Internet standards, and therefore hinder competition.

The commission noted last week that Internet Explorer is available on 90 percent of the world's PCs. Citing the evidence it has gathered to date, the EC said tying Internet Explorer with Windows "distorts competition on the merits between competing Web browsers insofar as it provides Internet Explorer with an artificial distribution advantage which other Web browsers are unable to match."

Microsoft observed that the EC is concerned that the ubiquity of Internet Explorer creates artificial incentives for content providers and software developers to design Web sites or software primarily for Internet Explorer, which ultimately risks undermining competition and innovation.

"According to the EC's SoO, other browsers are foreclosed from competing because Windows includes Internet Explorer," Microsoft said. "The SoO states that the remedies put in place by the U.S. courts in 2002 following antitrust proceedings in Washington, D.C., do not make the inclusion of Internet Explorer in Windows lawful under European Union law."

Imposing a Remedy

The SoO is based on...

Tue, 20 Jan 09
Review: Blockbuster's $99 Video Box Disappoints
http://www.newsfactor.com/story.xhtml?story_id=64110
Blockbuster Inc. knows the days of the movie rental store are numbered, as video downloads over the Internet slowly start to replace DVDs.

But knowing which way the wind is blowing doesn't mean you can sail it. Blockbuster's first box for playing Internet video on the TV doesn't measure up to competing devices.

The company launched the MediaPoint player in November, selling it for $99 from its Web site. The first 25 movie rentals are free.

It's a slim box made by 2Wire Inc. that connects to your TV and your home broadband line. Use the included remote to order a movie, and it starts downloading so you can begin watching after a few minutes.

It sounds pretty simple. But three similar devices I've tested in the past two years all are better than the MediaPoint. You'd think that the latecomer would be at least as good as the competition, since its creators have had time to learn from the others, but that's not the case here.

On the MediaPoint, a movie will start playing after a minute or so, while it's still downloading in the background. But it can't be fast-forwarded or reversed until the download is completed, which takes up to an hour, depending on your connection speed. If you leave a downloading movie to go to the box's main menu (maybe because you want to browse other selections) and then try to resume watching, the movie will start from the beginning, not from where you left off. Given that you can't fast-forward, this is very annoying, although at least 2Wire is working on fixing it.

The on-screen interface is unattractive compared to the competition and looks blurry on a high-definition TV. It once crashed on me, forcing me to reboot the unit by unplugging it. Only some movies have previews, and those are...

Tue, 20 Jan 09
New Yahoo CEO Gets Pay Package Worth at Least $19M
http://www.newsfactor.com/story.xhtml?story_id=64107
Yahoo Inc. will pay new CEO Carol Bartz at least $19 million in cash and stock during her first year on the job and top it off with an incentive package likely to yield a huge windfall if she can turn around the long-struggling Internet company.

The details of Bartz's compensation emerged Thursday in a regulatory filing made two days after Yahoo hired the tough-minded technology veteran to replace co-founder Jerry Yang as its chief executive.

Bartz's hard-driving management style is expected be a dramatic departure from Yang's laid-back approach. Her paycheck definitely be will much different.

For starters, Bartz will receive a salary of $1 million, double the $500,000 she had been getting as executive chairman of her previous employer, software maker Autodesk Inc.

Yang, already a billionaire from his holdings in Yahoo, had settled for a salary of just $1. Before Yang took over, Yahoo's previous CEO, Terry Semel, received a $250,001 salary in his last full year on the job before stepping down amid shareholder outrage over the company's decision to award him stock options valued at $71 million.

Bartz, 60, could supplement her salary with a cash bonus up to $4 million, depending on Yahoo's financial performance. She also is guaranteed a 2009 payment of $2.5 million in cash and $7.5 million in Yahoo stock to make up for benefits and stock awards she relinquished at Autodesk to take the new job.

Yahoo will award her with another stock grant initially valued at $8 million as part of annual incentives given to all the Sunnyvale-based company's brass. Yang usually declined these grants.

Bartz stands to make the most from 5 million stock options that Yahoo plans to give her at the end of the month. Yahoo is waiting to grant and price the options on Jan. 30 -- the same day as all...

Tue, 20 Jan 09
Samsung Electronics Reorganizes To Fight Slump
http://www.newsfactor.com/story.xhtml?story_id=64104
Samsung Electronics Co. announced a major restructuring Friday, consolidating business operations into two divisions as South Korea's most powerful and iconic corporation deals with the slowing global economy and expectations of looming red ink.

The new organization was included in an announcement of personnel changes at the company as well as at the broader Samsung Group of which it serves as flagship.

Samsung Electronics CEO Lee Yoon-woo, who retains his position, will also take on the added responsibility of overseeing a new Device Solution division combining the semiconductor and LCD businesses, according to the announcement.

The company also plans a Digital Media and Communications division to be headed by Choi Gee-sung, bringing together under one umbrella televisions, mobile phones and other consumer electronics such as printers, computers and home appliances, according to Samsung spokesman James Chung.

Samsung Electronics is the world's biggest manufacturer of memory chips, liquid crystal displays and flat screen televisions. It ranks second behind Finland's Nokia Corp. in mobile phones.

The company, however, has been struggling of late amid the global downturn and falling prices for semiconductors and flat screens. Its net profit declined 44 percent in the third quarter of 2008 from the same period in 2007.

Samsung is scheduled to announce fourth-quarter earnings on Jan. 23 and some analysts are forecasting the company will swing to a net loss.

"We needed to effectively respond to the current global recession," Samsung spokeswoman Hwang Eun-ju said regarding the reason for the changes.

She also said that Samsung will cut the pay of top executives by up to 20 percent.

The conglomerate-wide personnel changes are the second since the resignation in April of Lee Kun-hee as chairman of Samsung Electronics, the post from where he oversaw the entire Samsung Group. The position of Samsung chairman remains unfilled.

Lee Yoon-woo, the current CEO, assumed that position in May, in...

Tue, 20 Jan 09
Apple Starts Business Without Steve Jobs
http://www.newsfactor.com/story.xhtml?story_id=64101
Business without Steve Jobs got off to a slow start for Apple on Thursday.

Apple shares sank 2 percent, to $83.38, a day after its CEO and co-founder said he would take a medical leave through June to cope with lingering health issues. "Talking to investors today, the general feeling is, why own Apple shares in front of what could be more bad news?" says Piper Jaffray analyst Gene Munster.

A survivor of pancreatic cancer, Jobs, 53, last week disclosed he is suffering from a hormone imbalance that resulted in significant weight loss and his cancellation to speak at the Macworld trade show this month. In a letter to Apple employees Wednesday, Jobs said, "During the past week I have learned that my health-related issues are more complex than I originally thought."

"Apple is a special case, with such a high-profile figurehead," says Charles King, principal analyst at tech consultant Pund-IT. "There's not really a strong sense of who, if anybody, could replace him at the company."

For now, it is Tim Cook, Apple's chief operating officer. In 2004, he filled in for two months as interim CEO while Jobs recovered from pancreatic cancer surgery.

Cook, 48, a 10-year Apple veteran who cut his teeth at IBM and Compaq Computer in manufacturing and logistics, will probably assume the role of caretaker, tech analysts say. The soft-spoken Cook, who hails from Mobile, Ala., is known for his meticulous management style.

"The executive team already runs 90 percent of Apple, and the handover will be fairly smooth," says Leander Kahney, author of Inside Steve's Brain, a book about Jobs and Apple. "Cook will handle the day-to-day, and (senior vice president of industrial design Jonathan) Ive, design and new product development."

Analysts expect little impact on Apple's current product cycle, which lasts 18 to 24 months. But they are worried...

Tue, 20 Jan 09
Frustrated, Bewildered Air Travelers Can Blame System
http://www.newsfactor.com/story.xhtml?story_id=64014
One of the most agonizing aspects of air travel is waiting out a flight delay, desperate for information.

Within the United States, for example, one in four domestic flights runs late, meaning that about 400,000 passengers sit captive at gates or on the tarmac every day .

"They're very poor at getting on the intercom and saying, 'Here's our situation,'" said Jennifer Shirkani, owner of a management consulting business in Manchester, New Hampshire, who flies about 100,000 miles, or 161,000 kilometers, a year. "In some cases, there's not even a crew member at the gate until two minutes before the scheduled boarding time. So we're really on our own to find out what's going on."

If you have ever felt frustrated by the disconnect between what you hear from a gate agent, see on an electronic display, find out when you call the airline or even see out the window -- no aircraft ready to go -- it turns out there is a disconnect. Literally, there is a convoluted flow of information.

Passengers are at the end of a communication chain that involves multiple computer systems, gate agents, pilots, flight dispatchers, air traffic controllers, and other personnel, with updates moving along different paths.

"You can have three or four different systems providing information, one quicker than another at any point in time," said Cindy Bouchard, a former airport customer service supervisor with US Airways.

During a delay, gate agents and the flight crew communicate with the airline along separate channels, and do not necessarily talk to each other. Pilots typically get more updated information because they are in direct contact with the airline's system operations control center -- essentially, the brain that keeps track of every aircraft's schedule.

In the United States, pilots also communicate with tower personnel who are linked to the Federal Aviation Administration's command...

Sat, 17 Jan 09
Downadup Worm Races Onto Millions of PCs
http://www.newsfactor.com/story.xhtml?story_id=64121
The Win32.Worm.Downadup is raging across the Internet, using new tricks to spread undetected. The worm spreads by exploiting a vulnerability in the Windows RPC Server Service and has infected millions of Windows PCs in the last two weeks.

"From an estimated 2.4 million infected machines to over 8.9 million during the last four days," Toni Koivunen, an F-Secure researcher, wrote in the company's log. "That's just amazing."

According to Koivunen, there are several different variants of Downadup running wild. The algorithm to create the domain names changes a bit between the variants.

"We've been tracking the variant we believe to be most common [algorithm]. It creates 250 possible domains each day," he said. "We've registered some selected domains out of this pool and are monitoring the connections being made to them."

A Worm by Another Name

Also known as Conficker or Kido, the worm first appeared in late November, exploiting a vulnerability in Microsoft software to spread unhindered on local area networks. Its goal is to install rogue security software on infected computers.

Microsoft issued a patch for the vulnerability, but many users haven't installed it, leaving them open for infection as the worm spreads through portable USB flash drives.

"This malware exploits the fact that many people do not patch their systems," said Viorel Canja, head of BitDefender Anti-Malware Labs. "With its updated configuration and good protection scheme, this worm could become a rival to already established botnets like Storm or Srizbi."

Watch Those Thumb Drives

In late December, BitDefender Labs uncovered a new version of the worm called Win32.Worm.Downadup.B. The malware features some enhancements along with the distribution routine.

Specifically, the worm uses USB thumb drives to infect other computers. It does this by copying itself in a random folder created inside the recycler directory. The Recycle Bin uses the recycler directory to store deleted files and...

Sat, 17 Jan 09
Circuit City To Close All Stores in the United States
http://www.newsfactor.com/story.xhtml?story_id=64120
Big-box technology retailer Circuit City is asking for court approval to liquidate after two failed attempts at acquisition. The Richmond, Va.-based company said Friday that it plans to close its remaining 567 stores in the United States.

The move comes after the company filed a motion with the U.S. Bankruptcy Court to put the company up for sale and separate business units and inventory. Circuit City was in talks with "two highly motivated and interested parties" that were considering providing Circuit City with additional financing to keep the company afloat, but negotiations fell through.

"We are extremely disappointed by this outcome," said James Marcum, vice chairman and acting president and chief executive at Circuit City Stores. "The company had been in continuous negotiations regarding a going-concern transaction. Regrettably, for more than 30,000 employees [34,000 in total] of Circuit City and our loyal customers, we were unable to reach an agreement with our creditors and lenders to structure a going-concern transaction in the limited time frame available, and so this is the only possible path for our company."

Circuit City's Firedog repair service and 700-plus Canadian retail and outlet stores may be next on the chopping block, but for now executives say the Canadian operations, which have 3,000 employees, will not be affected by the liquidation.

Domino Effect

Circuit City's financial troubles began in mid-2008 when Blockbuster decided against acquiring it for a reported $1 billion. Things worsened when the poor economy led vendors to impose restrictions on payment terms and credit for the company. Vendors began asking for payment before products were shipped.

Financial troubles continued in November when the company was forced to close 155 stores in the U.S., scrap plans to open 10 new stores in 2009, and make massive job cuts. Of the company's 46,000 employees worldwide, 17 percent were let...

Sat, 17 Jan 09
Intel's Net Income Drops 90 Percent in Fourth Quarter
http://www.newsfactor.com/story.xhtml?story_id=64119
Leading chipmaker Intel announced Thursday that its net income for the fourth quarter plunged 90 percent compared to the same quarter in 2007. Its profit was $234 million vs $2.27 billion.

Total revenue for the quarter plummeted 23 percent from $10.7 billion to $8.2 billion. Both earnings and revenue were in the ballpark of most analysts' estimates, and the company's shares rose to $13.29 at the market close on Thursday.

Billion-Dollar Clearwire Impact

Intel said the results included a billion-dollar negative impact from its Clearwire investments. Clearwire is building a nation-wide WiMAX high-speed wireless network, and Intel hopes the network will spur the use of its WiMAX technology.

Total revenue for 2008 was $37.6 billion, with a net income of $5.3 billion. Company President and CEO Paul Otellini said "the economy and the industry are in the process of resetting to a new baseline from which growth will resume." He added that, even though the economic environment is uncertain, Intel's "business strategies are more focused than ever."

Otellini pointed particularly to Intel's efforts in manufacturing, product innovation, development of new markets, and operating efficiencies, noting that more than $3 billion has already been taken out of the company's cost structure since 2006. According to news reports, he told analysts on a conference call that this was only the second time in 20 years where revenues declined from the third to fourth quarters.

Consuming Laptop Sales?

Some observers have questioned whether netbooks, the mini-notebook computers that Intel has been championing, are related to the latest financials because they are hurting laptop sales.

In the conference call, Otellini reportedly said that, while there is some cannibalization of notebook sales by netbooks, it isn't a major factor. He said netbooks supplement laptops for most people, rather than replacing them -- at least for now.

Earlier this year, Intel Global Communications Group...

Sat, 17 Jan 09
YouTube Infiltrates the Boob Tube via Wii, PS3
http://www.newsfactor.com/story.xhtml?story_id=64118
YouTube has partnered with Nintendo and Sony to put YouTube on TV and now has a YouTube for Television Web site for Nintendo Wii and Sony PlayStation 3 users.

Earlier this week, YouTube said it would offer YouTube on TV with partners, including Panasonic, Sony and TiVo. Now the television Web site, currently in beta, will feature a streamlined interface that allows users to watch and share YouTube videos on any television screen.

The Web site is available globally in 22 localized sites and in more than 12 languages, according to the company. A specific date for a full launch has not been set, according to YouTube.

The move is in part an effort by YouTube to begin an industry evolution toward open television access for Web videos. YouTube over time plans to add support for additional television devices, including Web browsers. This is parent-company Google's first foray into television.

Larger and Easier

YouTube's new Web site, currently available only through the Wii and PS3, allows users to experience a YouTube Web site that has been configured for television.

"If I go to the standard YouTube Web site, there are a lot of hyperlinks and text, and it's intuitive to navigate on the computer, but when you put it on a TV, it's hard to navigate with a remote control because of the hyperlinks," said Chris Dale, a YouTube spokesperson.

Product managers want users to surf the Web site with ease, so they added buttons that are chunky and text that is big, Dale said. The site also features arrow-key navigation that allows the user to browse all the available videos rather than typing in text on the traditional YouTube site.

"You can also enable the autoplay function, which mirrors the TV experience that continuously plays one video after another," Dale said.

Kinks and Feedback

Because the Web site...

Sat, 17 Jan 09
House Recommends $6 Billion for Broadband Stimulus
http://www.newsfactor.com/story.xhtml?story_id=64117
The broadband-telecommunications arena has been targeted for $6 billion in funding approved Friday by the House Committee on Appropriations. The funding is part of the draft stimulus package currently working its way through Congress, which stands at a whopping $825 billion.

The bill also includes $650 million in additional funding for digital-conversion coupons. The coupons, from the National Telecommunications and Information Administration (NTIA), subsidize the purchase of converter boxes required so over-the-air TVs can continue to pick up television signals after the conversion to digital TV on Feb. 17.

Helping Rural Economies

Because of the demand for the coupons, the NTIA exhausted its $1.3 billion coupon fund earlier this month. President-Elect Barack Obama has urged the Federal Communications Commission to delay the transition to minimize the TV audience that could be cut off. The coupons are worth $40, and the converter boxes range from $40 to $80.

The overall stimulus plan also includes grants and tax cuts to upgrade energy-transmission systems, construct new roads and bridges, and modernize schools. The plan is intended to give a boost to the ailing economy and spur the creation of new jobs.

The inclusion of broadband in the plan is part of Obama's vision to keep the country's telecommunications infrastructure on par with other nations, especially given the global economy, and to help the economies of rural America.

According to news reports, though, the Obama transition team is not looking to accomplish these substantial goals only through the funding provided in the stimulus package. Rather, the unnamed sources indicate, it will be a sustained effort throughout Obama's presidency.

Praise for 'Open Access' Principles

Some consumer and broadband advocacy groups have proposed a substantially larger amount to bring broadband access to more Americans. For example, one higher-education organization, Educause, has sought $100 billion over four years, with about a third...

Sat, 17 Jan 09
Nintendo Wii Leads Record-Breaking Year for Games
http://www.newsfactor.com/story.xhtml?story_id=64116
The video-game industry has officially defied the economic downturn, although Sony's high-priced PlayStation 3 lags lower-priced consoles. The NPD Group reported a record-breaking year for video games.

U.S. consumers purchased $21.33 billion worth of video-game systems, software and accessories in 2008, according to NPD. That's a dramatic climb from 2007's total of about $18 billion, but falls short of NPD's November prediction that the industry would reach $22 billion by the end of 2008.

Growth did slow from the second and third quarters, but NPD said December enjoyed a nine percent increase over December 2007. Overall, 2008 saw a 19 percent boost in video-game systems, software and accessory sales. In fact, December was the first time the gaming industry topped $5 billion in revenue in a single month. Nintendo products were responsible for 99 percent of those additional retail dollars.

The Wii's Ultimate Victory

Microsoft's Xbox 360 sold 1.4 million units in December, up 14 percent from December 2007. Sony's PS3 sold 726,000 units, down nine percent from December 2007. But the PS2, a nine-year-old video-game console, sold 410,000 units.

Nintendo holds the ultimate bragging rights for its Wii console. Before 2008, no video-game system had ever been purchased by 10 million Americans in a single year. NPD's data show Nintendo has surpassed that figure with 2008 unit sales of 10.17 million. The Wii accounted for 55 percent of all next-generation console sales in 2008. Wii broke its own monthly record, set in December 2007, by selling 2.14 million units last month.

The Nintendo DS portable handheld system came in a close second, with 2008 unit sales of 9.95 million. Both Nintendo products broke the previous yearly sales record set in 2007 by Nintendo DS at 8.52 million. The Nintendo DS claimed 72 percent of all portable system sales in 2008.

"Our type of entertainment has now...

Sat, 17 Jan 09
Windows 7 Beta Reviewers Praise Microsoft's OS
http://www.newsfactor.com/story.xhtml?story_id=64115
The Windows 7 beta buzz is alive and strong a week after Microsoft made the operating system available to the masses.

Windows 7's latest praise comes from an important voice in the technology industry -- and one that was critical of Windows Vista: Intel. Intel software developer Doug Holland is singing the praises of the Windows Sever 3008 R2 beta and Windows 7 beta builds he has been testing.

Holland is using the Windows Server 2008 R2 Beta "Aero Enabled" Workstation Edition as the primary operating system on both his personal notebook and desktop. If Intel's IT department allowed it, he wrote on the Intel Software Network blog, he would also use the OS on his corporate notebook. He called the software "incredibly stable."

ISO and Multi-Display

One aspect of the two builds that Holland specifically noted is the ability to burn ISO images to CD or DVD without third-party software.

"It does not appear, however, that ISO images can be mounted as virtual CD or DVD drives without third-party software such as Roxio Creator 2009," Holland wrote. "Microsoft used to make available a virtual-CD utility to MSDN subscribers that enabled this, although a version that worked with Windows Vista or Windows Server 2008 was never released."

Holland welcomed support for multi-display remote desktop sessions for Windows Server 2008 R2 and Windows 7 beta. The feature allows users to open a remote desktop session, go to the display options, and see a checkbox entitled "Use all my monitors for the remote session."

Windows 7 Fixes Vista Mistakes

Microsoft is also getting cooperation from antivirus vendors. Symantec offers the Norton 360 3.0 beta that works with Windows 7 beta. AVG offers AVG Internet Security and AVG Anti-Virus that are compatible, and Kaspersky is offering a technical preview of Kaspersky Anti-Virus for Windows 7. These solutions are...

Sat, 17 Jan 09
Sony Ericsson Posts Loss, Sees Challenging Market
http://www.newsfactor.com/story.xhtml?story_id=64096
Sony Ericsson posted a loss of 133 million euros (US$176.3 million) for the fourth quarter and offered investors a gloomy outlook for cell-phone sales in the year ahead.

The joint venture between Sony and LM Ericsson said it shipped 24.2 million handsets in last year's final quarter -- down six percent from the prior period and a 21 percent decline from one year earlier. Sony Ericsson President Dick Komiyama attributed the year-on-year sales drop to the global economic slowdown.

"In economic terms, 2008 has been a tumultuous year with world markets experiencing a serious downturn," Komiyama said. "The mobile-phone market has been greatly affected by this and, as expected, the fourth quarter continued to be very challenging for Sony Ericsson."

Meeting Expectations

Sony Ericsson's latest sales numbers were in line with Gartner's expectations, noted Carolina Milanesi, the firm's research director for mobile devices. "It was what we were expecting, considering the weakness of the European market and the company's struggling product-placement efforts in the U.S. market," Milanesi said.

In particular, Milanesi said the company only had "two products driving sales" in the fourth quarter. These were the Xperia X1, Sony Ericsson's long-waited Windows Mobile-based touchscreen device, and the Cybershot C905, the company's first eight-megapixel camera phone, she noted.

Sony Ericsson said the average selling price for its handsets in the fourth quarter was 121 euros (US$160.37) -- an increase the company attributed to currency fluctuations as well as an increase in sales of high-end phones such as the Xperia and the Cybershot. The company also maintained its global market-share estimate at around eight percent.

A Challenging Market

Milanesi said last November that the global economic downturn had triggered a three-way battle between Sony Ericsson, Motorola and LG for third place in the worldwide mobile-phone market. Though Sony Ericsson emerged...

Sat, 17 Jan 09
Inaugural Security Plans Go High-Tech
http://www.newsfactor.com/story.xhtml?story_id=64086
Record crowds expected for President-elect Barack Obama's inauguration are prompting unique law enforcement strategies, including an unprecedented deployment of technology and a small army of police officers and military personnel, senior security officials say.

"Every element of the plan had to be tweaked to consider crowd control," Washington Police Chief Cathy Lanier says.

The FBI -- worried that crowds will slow responses to potential emergencies -- for the first time is outfitting at least 100 teams of specialists in hazardous materials, weapons of mass destruction and hostage rescue with global positioning devices, said Christopher Combs, an FBI supervisory agent involved in the inaugural security operation.

Supervisors at a local command center will track the teams on large screens so they can be quickly dispatched to possible crises.

A separate cellular telephone network is being tested for use by emergency officials in case existing systems are overloaded, as occurred in the hours after the Sept. 11, 2001, terrorist attacks.

"One of the reasons the assets required (for this inauguration) have doubled, even tripled is not because of the (terror) threat, but because of the number of people coming," Combs said. "A problem can be magnified 10 times because of the size of the crowd."

John Perren, counterterrorism chief at the FBI's Washington field office, said there are no credible threats against inaugural activities. Yet because of the "anticipated crowd size," he said, it is important for "all of us to be looking at the same sheet of music." District of Columbia Mayor Adrian Fenty and other officials predict crowds will top the record 1.2 million at Lyndon Johnson's inauguration.

Northwestern University professor Hani Mahmassani said he has been advising the district's Metropolitan Police and officials about crowd control strategies. Mahmassani, a civil and environmental engineering professor, has studied crowd behavior and the deadly stampedes that have marred annual...

Sat, 17 Jan 09
Predictions: IT Winners and Losers in 2009
http://www.newsfactor.com/story.xhtml?story_id=64082
I was recently asked to predict IT Winners and Losers in 2009. Rather than name individual companies, I'd like to highlight categories:

Winners

Electronic Health Record (EHR) vendors, especially Web-based applications: The Obama administration has promised $50 billion for interoperable EHRs.

Software as a Service (SaaS) providers: SaaS providers offer lower cost of ownership and faster implementation than traditional software installation approaches.

Open Source: I'm embracing open source operating systems, databases and applications as long as they can provide the reliability and supportability that I need.

Green TT: Winners will be innovative techniques to adjust power draw, such as idle drive management, CPU voltage adjustments and high efficiency power supplies.

Cloud Computing Offerings: These are remote infrastructure utilities such as storage and high performance computing.

Losers

Client Server Applications: The cost of deploying, supporting and maintaining client server applications is no longer affordable.

Proprietary Operating Systems: I'm eliminating Solaris, AIX and HP-UX from my data centers.

High-end SAN storage: I find that 90 percent of my storage needs are met with lower end SAN, NAS and appliances that use low cost, high density drives (SAS and SATA).

Devices that do not offer energy efficient operations.

Applications that require a specific operating system or a specific browser on the client side: To be successful in 2009, applications should be operating system neutral, browser neutral and easily hosted as a service accessible via the Web.

Sat, 17 Jan 09
PC Shipments Decline Worldwide in Fourth Quarter
http://www.newsfactor.com/story.xhtml?story_id=64080
Global shipments of personal computers posted their first quarterly decline in six years during the last three months of 2008 as consumers and businesses alike gripped their wallets in fear of further economic turmoil, a technology research group reported Wednesday.

Framingham, Mass.-based IDC said worldwide shipments slipped 0.4 percent from the October-December quarter in 2007. In the U.S., PC shipments sank 3.5 percent from a year ago.

The last time worldwide shipments declined was during the second quarter of 2002.

"Despite market optimism early in the fourth quarter, the pace at which the economic environment unraveled and the extent to which PC purchases were affected was faster than anticipated," the research group said in a statement.

Gartner Inc. issued a quarterly PC shipments report Wednesday that showed the industry posted its slowest growth in six years. The two research groups use slightly different methods to assess the industry; by Gartner's tally, global PC shipments edged up 1.1 percent in the quarter.

Stamford, Conn.-based Gartner reported that U.S. shipments sank 10.1 percent.

Though IDC had predicted a quarterly decline in shipments, even fewer shoppers turned out to snap up low-cost netbooks -- smaller, less powerful laptops -- or discounted computers in the quarter than expected. Laptop shipments, which had been growing at a hot 40 percent in the first three quarters of 2008, plunged to 20 percent in the fourth quarter.

The decline in worldwide shipments is further evidence that the economic crisis has spread beyond the U.S., said IDC research analyst Doug Bell. The slump is expected to last into 2010, and Bell said that there's little the technology industry itself can do to goose spending until the economy recovers.

Hewlett-Packard Co., still the world's largest PC maker, shipped 3.1 percent more computers in the 4th quarter around the globe, according to IDC. Dell Inc., No. 2 in...

Sat, 17 Jan 09
New Zealand Police Use Facebook To Solve Burglary
http://www.newsfactor.com/story.xhtml?story_id=64077
Police in New Zealand nabbed a man who was trying to crack a bar's safe after posting security camera footage of the act on the Internet networking site Facebook.

Police said it was New Zealand's first such arrest and said they would use the site again, part of a growing trend among law enforcement officials and lawyers who are turning to online networks to fight crime.

"Facebook was very, very handy, and it's a good little tool," Senior Sgt. John Fookes of Queenstown police told The Associated Press on Thursday.

Privacy advocates, however, were concerned about the free-for-all way in which private information is often shared on such sites, and the potential for misuse.

"Because of the inherent insecurity and the known high-level of identity deception on Facebook, it won't be very long before people start to abuse it," said David Vaile, the vice-chairman of the Australian Privacy Foundation.

Anyone could set up a Facebook page claiming to be a police officer and post photographs of "wanted" people they sought to harass, he said.

The video showed man, wearing a face-covering balaclava and carrying a bag of tools, breaking into a tiny storage room inside the Franklin Tavern in the tourist town of Queenstown early Monday. He tried to cut into a safe containing $12,000 (NZ20,000) in takings from gambling machines.

After nearly an hour in the cramped space, the man removed his balaclava and gloves and looked around -- red-faced from fruitless toil. As he left, the video showed the man suddenly spotting the lens of the security camera that was recording his every move.

"He looks around and sees it and there's just a shocked look of 'gutted,' said tavern assistant manager Mel Kelly. "His face definitely drops."

Officers posted the footage on the Queenstown police Facebook page and identification was "very, very quick; overnight, we had...

Sat, 17 Jan 09
The Outlook Gets Murkier for Clearwire
http://www.newsfactor.com/story.xhtml?story_id=64075
Last May some of the biggest names in the technology and media business, including Intel Google, Sprint, and Comcast, teamed up to invest $3.2 billion in the startup Clearwire. The Kirkland [Wash.] company founded by entrepreneur Craig McCaw had high hopes of shaking up the wireless industry. The idea was that Clearwire would offer an alternative to the two big incumbent U.S. operators, AT&T and Verizon Wireless, by rolling out a technology called WiMAX that could provide superfast Internet service for cell phones, laptops, and other devices.

Today, Clearwire is just trying to keep its head above water. Although sales are on track to rise 50 percent this year, to $230 million, analysts expect the company to lose $715 million. Billions more in losses are projected for the coming years as Clearwire invests heavily to roll out its network. Clearwire needs to raise billions in additional capital in the midst of the worst economic downturn in decades or it will be forced to slow the pace of its rollout and give AT&T and Verizon a chance to gain ground in the race to build next-generation wireless networks.

Clearwire's stock has plummeted 88 percent since its peak in mid-2007. The sharp fall has prompted backers to announce write-offs on their investments, including a $950 million charge by Intel and a $350 million charge by Time Warner Cable. Google and Comcast are expected to follow suit.

Potential Backer

In the months ahead, the credit crunch could crimp Clearwire's ambitions. The company needs to raise an additional $2 billion to $2.3 billion to reach its target of offering wireless broadband service in most of the top 100 U.S. markets by the end of 2010. That looks like a stretch given the financing environment. "For companies that need financing to get their business model up and running, you...

Fri, 16 Jan 09
Salesforce.com Rolls Out the Service Cloud
http://www.newsfactor.com/story.xhtml?story_id=64095
Salesforce.com on Thursday rolled out its next-generation solution for customer service. Dubbed Service Cloud, the new software is built on the Force.com platform and leverages the benefits of cloud computing.

Service Cloud will capture customer-service conversations with the goal of empowering companies to leverage the expertise of partner sites, which include cloud platforms like Google, Facebook and Amazon.com, to customers, agents and partners, regardless of location or device.

The company says its latest innovation represents the future of customer service, where more than two-thirds of all service conversations will take place in the cloud. If Service Cloud performs as Salesforce.com describes, it could keep customer service consistent across every channel.

"The Service Cloud is the first customer-service solution that empowers companies to join and manage all service conversations happening in the cloud," said Marc Benioff, chairman and CEO of salesforce.com. "This has been made possible through the emergence of native cloud-computing platforms like Force.com that are built to harness the power of other clouds like Facebook, Google and Amazon.com."

A New Customer-Service Model

Contact-center technologies traditionally have been removed from the experts and knowledge found in the cloud. Yet, according to salesforce.com, 50 percent of all service conversations are already taking place in the cloud.

Salesforce.com said the Service Cloud is vying to create a new model for customer service by joining two disconnected worlds. The Service Cloud captures and funnels information from inside the enterprise and in the cloud into the knowledge base.

The Service Cloud is made up of seven main components around the knowledge base to gather, distill and disseminate the expert knowledge found in the cloud to customers, agents and partners. Those components are community, social, search, partners, phone, e-mail and chat.

According to Gartner analyst Michael Maoz, the new generation of consumers trusts content created by peers. "This consumer expectation...

Fri, 16 Jan 09
Google Reorganizes Engineers, Reduces Recruiting
http://www.newsfactor.com/story.xhtml?story_id=64094
Google isn't immune to the economic downturn and is scaling back. The search giant will reassign 70 of its engineering positions and scale back its recruiting efforts by cutting 100 positions, it announced Wednesday.

Google said it is consolidating engineers from Texas, Norway and Sweden.

"Our long-term goal is not to trim the number of people we have working on engineering projects or reduce our global presence, but create a smaller number of more effective engineering sites, which will ensure that innovation and speed remain at our core," said Alan Eustace, senior vice president of engineering and research at Google.

Recruitment Down

"All of the engineers are being offered jobs at other locations," according to Eileen Rodriguez, a Google spokesperson. "We are planning to close all three locations and relocate the engineers to other Google offices."

Still, Eustace admits in his post that it recognizes "the upheaval and heartache" that the changes will have on Google families and that they may not be able to keep all 70 employees.

This isn't the first time the Mountain View, Calif.-based company has reassigned its engineers. In September, Google moved engineers from its Phoenix, Ariz., office to other locations. Google currently has engineers in 40 offices in more than 20 countries, according to the company.

Anticipating a continued downturn in the market, Google started making significant cuts, including releasing temporary employees, according to SEC filings attained by the Associated Press. It wasn't clear, however, how many of its reported 4,300 interns, temp workers, and contractors were dropped.

Google is hiring at a lower rate than initially expected, the company said in its quarterly earnings announcement in October.

On Wednesday, Google said it is cutting 100 positions in recruiting. The move suggests it expects the economy to get worse with no quick economic relief in sight, especially after a year...

Fri, 16 Jan 09
Apple's Board Must Balance Jobs' Health vs Its Duty
http://www.newsfactor.com/story.xhtml?story_id=64089
On Wednesday, Apple CEO Steve Jobs announced he is taking a medical leave because his illness has become more complex. That news sent Apple's stock down seven percent.

It wasn't the first time the stock market worried about Jobs' health. Apple's stock also tumbled in December when Apple announced that a gaunt Jobs would not give the keynote at Macworld. Earlier this month, Jobs disclosed that he suffered from a hormone imbalance, but said he would continue leading Apple.

The impact on Apple's stock "was inevitable because the perception in the market is that Steve drives everything at Apple and, as goes Steve, so goes Apple," said Van Baker, a Gartner analyst. "This is not an accurate perception, as the executive team at Apple is very competent and capable of running the business very well."

A Tough Call

So what does a company built around the iconic Jobs do? Does it take a very personal health situation and make it everyone's business? Or does it guard the man who built Apple and upset investors?

"At the end of the day, the board has the responsibility to Apple employees and Apple shareholders and will have to constantly balance between what are their fiduciary responsibilities vs Steve's right to privacy," said Michael Gartenberg, vice president for mobile strategy at Jupitermedia. "My guess is along with the board and Apple's general counsel, they will figure out all of those things."

Jobs himself isn't comfortable talking about his illnesses -- first a rare form of pancreatic cancer, and now a hormone imbalance -- but said that while he is focusing on his health he will always put Apple first. Jobs said he plans to remain involved in major strategic decisions while he is on leave until June and has put Tim Cook, Apple's chief operating officer, in charge of...

Fri, 16 Jan 09
Sprint's Boost Mobile Will Offer $50 Unlimited Plan
http://www.newsfactor.com/story.xhtml?story_id=64088
Boost Mobile, a subsidiary of Sprint Nextel, will introduce next week a phone and data plan for $50 a month. The plan includes unlimited anytime calling, text messaging, wireless Web, and walkie-talkie services anywhere in the U.S.

In its announcement, Boost noted its competitive advantages against regional carriers MetroPCS and Leap Wireless International's Cricket, which offer competing unlimited plans. For one thing, Boost said its plan offers unlimited nationwide service in 15,800 cities on the Nextel National Network, with no additional telecom taxes or fees for activation, roaming, traveling or long distance.

Boost said its plan has one monthly fee, with no hidden charges, and offers a higher-quality network at a good price. It claimed Cricket has quadruple its number of dropped calls and MetroPCS has more than twice as many.

'A Lot of Wrong'

Boost Mobile President Matt Carter said "wireless customers know there's a lot of wrong out there," such as overage charges and extra costs for voice mail and roaming. But, he added, "our new flat-rate plan will not include any of these charges," because "what you see is what you get."

Boost claims a potential customer pool of about 274 million. According to news reports, Leap covers about 64 million and MetroPCS about 60 million.

Boost is the youth-oriented subsidiary of Sprint, which has been struggling to avoid further reductions in its falling customer base. The new monthly unlimited plan uses the company's underutilized iDEN network.

Customers choosing the monthly unlimited plan will need to get a compatible Boost phone and activate their account. Existing subscribers can switch to monthly unlimited.

'Sets a Floor'

Bill Ho, an analyst for industry research firm Current Analysis, called the new offering a "very good plan" and added that it now "sets a new floor for unlimited, prepaid national calling."

He pointed out that, just 10 months ago, unlimited plans...

Fri, 16 Jan 09
IBM Remains Patent King, But U.S. Innovation Is Slipping
http://www.newsfactor.com/story.xhtml?story_id=64070
IBM is the undisputed patent king, with 4,186 U.S. patents in 2008. The numbers make Big Blue the first company ever to earn more than 4,000 U.S. patents in a single year. But U.S. firms may be giving ground to foreign competitors, according to a new study.

IBM's 2008 patent issuances are nearly triple those of Hewlett-Packard. Big Blue also outpaced Microsoft, Oracle, Apple, EMC, Accenture and Google combined. This is the 16th year IBM has led in U.S. patents.

According to Dr. John E. Kelly III, IBM senior vice president and director of IBM Research, the company's strategic use of intellectual property is based on balancing proprietary and open innovation.

"Our goal is helping stimulate innovation as public investments in large infrastructure projects are being planned to boost global economies," Kelly said. "We also anticipate that adding additional transparency to the patent system will help tackle the continuing patent-quality crisis, which is impeding inventors, entrepreneurs and companies of all sizes."

Is America Losing Patent Dominance?

IFI Patent Intelligence, however, points to evidence that America's patent dominance may be slipping away to companies overseas, especially to those in Asia.

In a review of 2008 utility patents, IFI found that American companies captured only 49 percent of U.S. patents granted to companies. That compares to 50 percent in 2007. In addition, the U.S. holds only four of the top 10 slots, down from five in 2007. American firms also hold only 12 positions in the top 35, which collectively generated 26 percent of all the utility patents granted in 2008.

By comparison, Japanese companies hold five of the top 10 slots and 14 of the top 35. Although America is still the leading country in total new patents for 2008, IFI noted that Japan trails second with 23 percent. Germany, meanwhile, is third with six percent, South...

Fri, 16 Jan 09
More Adults Have Profiles at Social-Networking Sites
http://www.newsfactor.com/story.xhtml?story_id=64069
The percentage of adults using social-networking sites has risen dramatically in recent years, reports the Pew Internet and American Life Project. More than 35 percent of the adults the organization surveyed last year report having a profile at one or more social-network sites -- up from just eight percent in 2005.

"Still, younger online adults are much more likely than their older counterparts to use social networks, with 75 percent of adults 18-24 using these networks, compared to just seven percent of adults 65 and older," noted Pew Senior Research Specialist Amanda Lenhart. "At its core, use of online social networks is still a phenomenon of the young."

Gauging Popularity

Adults -- which make up a larger portion of the U.S. population than teens -- represent the bulk of users of social-networking Web sites, Lenhart said. On the other hand, social-network users are more likely to be students.

According to Lenhart, 68 percent of full-time students and 71 percent of part-time students have a social-network profile. By contrast, just 28 percent of adults who are not students indicated that they use social networks.

"Overall, personal use of social networks seems to be more prevalent than professional use of networks, both in the orientation of the networks that adults choose to use as well as the reasons they give for using the applications," Lenhart said. "Most adults, like teens, are using online social networks to connect with people they already know."

Among survey respondents, the most popular social-networking sites were MySpace (50 percent), Facebook (22 percent), LinkedIn (six percent), Yahoo (two percent), YouTube (one percent), and Classmates.com (one percent). MySpace users are more likely to be women, Hispanic or black, and to have a high-school education or some experience with college, Lenhart said. By contrast, Facebook users are more likely to be men...

Fri, 16 Jan 09
YouTube Mutes Copyrighted Music, Angers Users
http://www.newsfactor.com/story.xhtml?story_id=64068
In a move to balance the needs of music copyright holders and its content-generating users, YouTube on Wednesday said it's offering more options to users who violate copyrights. The result is hundreds of videos without sound.

The move seems to be in response to a Warner Music Group demand in December that YouTube cut off access to videos that contain Warner music. The demand came after negotiations on licensing agreements stalled.

At that time, YouTube warned users that they "may notice videos that contain music owned by Warner Music Group being blocked from the site." YouTube is no longer threatening. It has moved to block the music content while trying to appease users. Many users, however, are up in arms about the change.

YouTube's Compromise

Previously, when a music label or other rights owner issued a copyright claim to block audio, YouTube automatically took the video down. Uploaders had two choices: dispute the claim -- in the case of fair use, for example -- or use YouTube's AudioSwap tool to replace the track with one from a library of approved music.

"Music licensing can get very complicated, but we try to make your experience as simple as possible," YouTube's blog said. "We want you to have options when uploading videos with music in them. And if your video is subject to a copyright claim, you should have some choices, too."

YouTube has been fingerprinting audio tracks and informing users when they infringe on copyrights. The copyright owner got the option of having the video removed or letting it stay up along with revenue-generating ads.

Now instead of a video being removed, users have an option to modify the video by removing the disputed music and posting a new version. YouTube reports that many of its users are taking that option.

"Our content-management tools have revolutionized...

Fri, 16 Jan 09
Start Off 2009 With a Clean Computer
http://www.newsfactor.com/story.xhtml?story_id=64060
New years are great for fresh starts, including your once-trusty computer that now runs like a wounded snail. Rather than spend a lot of time cleaning up a dirty operating system, sometimes the best solution is to start over from scratch.

It sounds scarier than it is.

There are many legitimate reasons for doing a clean reinstall of your operating system, which for our purposes here will be Windows XP. There could be damage to system files that cannot be repaired or a faulty hard drive forcing you to start over. There also could be viral infestations so bad that only a hard drive reformat and Windows reinstall would fix it.

With planning, you can get through this with few hassles. Be aware that you will need to reinstall all applications and if some of them don't allow you to save configuration settings, they will need to be re-entered. It's a minor inconvenience, considering the benefits.

The first step in a complete Windows reinstall is to take inventory of your hardware and software requirements. Because you're starting from scratch, you'll need to reinstall a significant amount of software, so make sure you have it on hand before you do anything.

You'll need to have the original Windows disc, as well as the discs that came with any special hardware. In particular, look for a disc that came with your motherboard, containing special drivers for onboard video, sound, network adapters and other important chipset features. If you don't have this disc, make sure you download it from the manufacturer's Web site beforehand.

Assuming you keep the installation discs from other hardware devices attached to your system -- keyboard, mouse, webcam, printer, scanner, etc. -- dig those out as well. If you're missing any of these peripherals, no worries; you can always download the latest drivers online. In...

Fri, 16 Jan 09
Video Games Expected To Evolve in 2009
http://www.newsfactor.com/story.xhtml?story_id=64059
Don't hit that pause button just yet. Despite the tanking economy and an increasing number of video game-industry layoffs, many believe 2009 will be a year of evolution for games. The combination of innovative new titles, long-awaited franchise follow-ups and desire for escapism could spawn a gaming renaissance.

"While game makers providing traditional retail product will continue to concentrate on high-profile sequels and licensed properties in an effort to mitigate risk, many of the field's most exciting developments will actually be happening outside of your local GameStop," said DigitalTrends.com publisher Scott Steinberg.

By focusing on surefire $60 sequels that are appearing on next-generation consoles for the first time -- like "Resident Evil 5," "Street Fighter IV" and "God of War III" -- gaming publishers are expected to avoid economic pitfalls while independent developers are poised to provide cheaper, quicker and quirkier alternatives, such as $20-or-less downloadable games like "Flower" for the PlayStation 3 or "Darwinia Plus" for the Xbox 360.

"Why pay $60 for a game you don't have time to play anyway when dozens of bite-sized, instantly intuitive and schedule friendly alternatives are available for $5 to $15 right from your couch?" muses Steinberg.

Steinberg also anticipates even more developers will extend their games' out-of-the-box life with downloadable content. Rockstar Games is set to release "The Lost and Damned" exclusively on Xbox Live on Feb. 17. The "Grand Theft Auto IV" expansion will add new content and hours of gameplay to last year's top-selling action game.

Several grander gaming innovations were teased at last week's Consumer Electronics Show in Las Vegas. Sony showcased 3-D editions of such games as "MotorStorm: Pacific Rift" and "Wipeout HD" while Microsoft introduced "Kodu," a downloadable Windows PC and Xbox 360 program that allows amateurs -- from children to adults -- to create their own games.

"Video games are poised...

Fri, 16 Jan 09
Panel: Technology Alone Can't Protect Kids Online
http://www.newsfactor.com/story.xhtml?story_id=64058
A task force charged with assessing technologies for protecting children from unwanted contact online has concluded that no single approach is foolproof and that parental oversight is vital.

The Harvard-led panel, in a report obtained by The Associated Press and scheduled for release Wednesday, dismissed prospects for age-verification technologies, the approach favored by many law-enforcement officials who had pushed for the creation of the task force.

The yearlong Internet Safety Technical Task Force also played down fears of Internet sexual predators who target children on social-networking sites such as Facebook and MySpace. While citing other dangers such as online bullying, the panel said cases of predators typically involved youths well aware they were meeting an adult for sexual activities.

Technology can be a component in the strategy to protect minors online, but Internet companies "should not overly rely upon any single technology or group of technologies as the primary solution," the task force said.

"Parents, teachers, mentors, social services, law enforcement and minors themselves all have crucial roles to play in ensuring online safety for all minors," the report said.

The findings come as little surprise as law enforcement, Internet companies, child-safety advocates and policy makers seek to address fears of Internet sexual predators.

Rather, the report serves to synthesize what many researchers and child-safety advocates have been saying. The report also identifies areas in which more studies are needed -- on what sex offenders do at social-networking sites, and how minors are approached sexually by other minors.

Connecticut Attorney General Richard Blumenthal, one of the leading forces behind the task force's creation, criticized the report for relying on "outdated and inadequate" research to downplay the threat of predators. Blumenthal said the task force should have made more specific recommendations for implementing and improving technologies.

"The report is a step forward, but it has to be followed by...

Fri, 16 Jan 09
Network-Tampering Case Stalls as Charges Challenged
http://www.newsfactor.com/story.xhtml?story_id=64056
The attorney for a San Francisco city worker accused of tampering with the city's main computer network said today he plans to file a legal challenge to the language of the charges against his client.

Terry Childs, 44, a San Francisco Department of Technology network engineer, remains in custody on four felony counts of computer network tampering, as well as one count of causing losses of more than $200,000, resulting from the tampering.

Childs, of Pittsburgh, appeared briefly in San Francisco Superior Court this morning to be arraigned on the charges, after a judge ruled on Dec. 24 there was sufficient evidence for him to stand trial.

However, arraignment was postponed when Judge Charles Haines granted a request from Childs' attorney Richard Shikman to delay entering a plea and setting a trial date while Shikman filed a demurrer on the charges.

Shikman said outside the courtroom that he plans to challenge the wording of the charges, which he said were "vague," gave "inadequate notice," and failed to specify the exact nature of the alleged violations.

"This is a very serious challenge as to the charges," Shikman said.

Shikman's demurrer will be heard on Feb. 11.

Childs was arrested and charged in July, and remains in San Francisco County Jail on $5 million bail.

He could face up to seven years in prison if convicted, according to prosecutors.

Prosecutors have alleged that Childs rigged the city's FiberWAN network, which handles most of the city's computer traffic, with his own passwords, denied access to other network administrators, and had installed

devices on the system that could have caused a full system failure if power were to be shut down.

The city was eventually able to regain control of the network when Childs gave up the passwords from his jail cell. The cost of repairing system has been estimated at up to $1...

Fri, 16 Jan 09
ATP, WTA To Offer Live Matches on the Internet
http://www.newsfactor.com/story.xhtml?story_id=64052
The ATP and WTA tours will offer fans the chance to see more professional tennis matches live on the Internet this year -- for a price.

The men's and women's professional tours announced the creation of TennisTV.com on Tuesday, offering streaming video from 41 events, including the Masters series and the season-ending championships but excluding the four Grand Slam tournaments.

Not everyone around the world, however, will be able to purchase a pass to the site. The WTA is excluding users in all European countries and some others, while the ATP is not offering the live service in Brazil, according to the Web site.

The men's and women's finals of this year's Sony Ericsson Open in Key Biscayne, Fla., will also be blacked out in the United States.

Where it is available, subscribers will be charged $129.95 for a full access pass to the season. A men's pass runs $84.95, and a women's pass costs $69.95. Viewers can also purchase day or tournament-specific passes for lower prices.

"This is an incredibly exciting time for the future of tennis viewing," WTA president Stacey Allaster said in a statement. "For the first time we will be able to deliver live broadcast quality matches from both tours' top level tournaments to online audiences around the world."

Overall, the two tours plan to provide eligible fans with access to about 700 live streaming matches, interviews and matches on demand. Coverage will start with this week's Sydney International in Australia.

Last year, the WTA Tour's Web site broadcast a live women's match -- in select countries -- for free for the first time. The live feed of the Pacific Life Open final was not available to users in the United States, Japan, Hong Kong, Australia or any country in Europe.

Besides Europe, WTA matches on TennisTV.com will also be excluded from viewers in...

Fri, 16 Jan 09
Cell Phones Put To 'Unnerving' Use in Gaza
http://www.newsfactor.com/story.xhtml?story_id=64050
To the suicide vest, the rocket and the battering ram, those longtime staples of conflict in the Middle East, add the cell phone.

Both sides in the Gaza war have employed cell phones as a form of psychological warfare, among other purposes -- part of a trend toward using new media in a century-old conflict.

Hagar Mizrachi, a 25-year-old Israeli, recently received a text message that said rocket attacks on all of Israel's cities were imminent. The message was signed "Hamas" and the sender name was listed as "Qassam.hamm," he said. Qassams are rockets that Hamas militants have been firing from Gaza into southern Israel. "It's unnerving to receive something like that," said Mizrachi, an editor at an online news service. "It feels like they've invaded you."

Yaniv Levyatan, a psychological warfare expert at the University of Haifa, said cell phones are a natural tool because soldiers and militants are generally young and have grown up using them. Israel and Gaza are small, densely populated areas blanketed by wireless service, making the phones' use even more effective, he said.

Levyatan said the messages from Hamas to Israeli cell phones were generally crude and not targeted very well. "The Hebrew was terrible," he said.

Palestinian phone users report receiving calls on both cell phones and land lines, encouraging them to turn in Hamas militants or warning them their home is about to be bombed, said Amman Aker, head of the Palestinian mobile phone company Jawwal, which operates in Gaza.

"We can't do anything about it," Aker said. He said the calls come in from international carriers and cannot be traced or blocked.

Israeli officials say they are doing Palestinians a service by advising them of impending attacks so civilians can get out of a building.

"We have to do what we can to warn civilians," said Maj. Jacob Dallal,...

Thu, 15 Jan 09
Apple CEO Steve Jobs Taking Medical Leave Until June
http://www.newsfactor.com/story.xhtml?story_id=64067
Apple CEO Steve Jobs said Wednesday he will take a medical leave of absence until the end of June. He said COO Tim Cook will run the company during his absence.

Jobs, 53, said his health has deteriorated to the point it can't be ignored. Earlier this month he said a hormone imbalance caused a noticeable loss of weight, but gave few details. Jobs successfully battled pancreatic cancer in 2004.

"Unfortunately, the curiosity over my personal health continues to be a distraction not only for me and my family, but everyone else at Apple as well," Jobs said. "During the last week, I have learned that my health-related issues are more complex than I originally thought."

Apple's stock fell more than eight percent after trading was halted for the announcement.

Concerns about Jobs' health escalated in December when Apple announced he would not give the keynote address at this month's Macworld in San Francisco. Apple's stock price fell, and Oppenheimer & Co. said it would not recommend Apple stock until Apple provided information about Jobs' health and plans for a successor.

Philip Schiller, vice president of Apple's worldwide product marketing, gave the keynote at Macworld. The day before the address, Jobs released a letter citing the hormone imbalance.

Cook has been considered a possible successor to Jobs and ran the company during Job's 2004 absence for cancer surgery.

Thu, 15 Jan 09
Google Launches Reseller Program for Developers
http://www.newsfactor.com/story.xhtml?story_id=64066
Google is getting serious about cloud computing. On Wednesday the search giant launched the Google Apps Reseller Program, which will give developers familiar with Software as a Service a way to put their applications in front of users.

Google Apps has had some success, with more than 3,000 businesses signing up daily and more than one million companies using it. Now the company wants to build on that momentum by allowing developers to bundle services with Google Apps.

"Given this strong demand, we believe there's a great opportunity to do even more by helping IT solution providers grow their business opportunities around cloud computing," said Paul Slakey, Google's director of enterprise channels, in a blog post. "As we got our sea legs, we started slowly with a core group of partners who've been key trusted advisers in customer deployments, such as at Genentech and Hamilton Beach. We're now expanding this ecosystem to help more IT professionals build cloud-computing expertise."

For the Developer

What's in it for the developer? Google said a slew of things, including managing billing and customer relationships, receiving a recurring discount on licensing fees, and being trained in sales, marketing and technical skills.

Developers will also be given access to reseller tools for setting up business customers, provisioning end users, and management and reporting of apps.

Once a developer is accepted, he or she will able to buy Google Apps Premier Edition for 20 percent off the $50-per-year price, offer it to customers, and turn a profit.

Already 50 pilot developers have been on board for the past few months helping Google iron out any glitches. So far, developers have received the program well, according to Google spokesperson Andrew Kovacs.

"The program was just launched today, so most of the feedback has been from our pilot partners and they have been really enthusiastic and...

Thu, 15 Jan 09
Blockbuster Joins Forces with Sonic for Online Movies
http://www.newsfactor.com/story.xhtml?story_id=64065
In a move to compete with Amazon.com, Blockbuster on Wednesday announced a strategic alliance with Sonic Solutions to deliver a library of premium digital content across a variety of home-based and mobile electronic devices.

Blockbuster will rely on its brand name to attract consumers while Sonic works behind the scenes to serve the content. By joining forces, the companies expect to have one of the largest video-on-demand and electronic sell-through offerings on the market.

Jim Keyes, Blockbuster chairman and CEO, said one of the goals of the alliance is to make movies instantly available to consumers through a wide range of devices.

To that end, the companies are collaborating with consumer electronic manufacturers, including Sonic's existing CinemaNow providers, to make available a broader range of devices that work with Blockbuster's service. Specifically, Blockbuster plans to deliver movies to PCs, portable media players, Blu-ray Disc players, personal video recorders, set-top boxes, mobile phones, and Web-connected television sets.

Aggressive Moves

"Blockbuster is a ubiquitous entertainment presence in the physical world. Through this alliance with Sonic, we plan to become a ubiquitous presence in the digital world as well," Keyes said. "Our goal is to offer consumers the most digital content, the most accessibility, via the most devices, both in and out of home."

Sonic's device ecosystem is powered by its new CinemaNow SDK (software development kit). Blockbuster said the SDK will help streamline the introduction of its digital entertainment service for both Mac and Windows consumer electronics through streaming and downloads. The devices will be sold through Blockbuster retail stores, blockbuster.com and other leading retailers.

"With more and more broadband-enabled consumer electronics hitting the market, there is a growing need for a service that gives consumers access to premium entertainment on any device, anytime and anywhere," said Dave Habiger, president and CEO of Sonic Solutions. "By...

Thu, 15 Jan 09
Nortel Networks Files for Bankruptcy Protection
http://www.newsfactor.com/story.xhtml?story_id=64064
Is Nortel Networks another victim of the economy or of bad management and fraud? The Canada-based provider of telecommunications equipment filed for bankruptcy protection as part of a plan to turn the company around, it announced Wednesday. The application will be reviewed by the Ontario Superior Court of Justice.

Nortel is also asking the court to approve a deal with one of its key suppliers, Flextronics. Under that deal, Nortel Networks Limited will purchase $120 million of existing inventory by July 1 and make quarterly purchases of other inventory.

Two of the company's U.S. subsidiaries, Nortel Networks and Nortel Capital, have also filed for Chapter 11 bankruptcy protection. The company's EMEA subsidiaries will also be filing for protection in Europe.

The move to protect assets came after the company's board said it had exhausted other efforts. Nortel, however, may also be trying to protect itself from $107 million it owes in interest payments.

No Surprise

Nortel's filing shouldn't be a surprise. In the last several years the company has had more than a dozen rounds of layoffs. Just last year Nortel paid $35 million in a civil suit filed by U.S. regulators after the Securities and Exchange Commission said the company was involved in two fraudulent account schemes to meet expectations on Wall Street. Former Nortel CEO Frank Dunn was charged with criminal fraud for also allegedly tweaking the company's financials in 2002 and 2003.

Current ?CEO and President Mike Zafirovski began an effort to turn the company around in late 2005, but the global financial crisis and recession compounded the company's bottom line, according to Nortel. In November, Nortel reported $3.4 billion in third-quarter losses.

"Nortel must be put on a sound financial footing once and for all," said Zafirovski. "These actions are imperative so that Nortel can build on its core strengths and...

Thu, 15 Jan 09
Microsoft Fixes Three Bugs in First 2009 Patch Tuesday
http://www.newsfactor.com/story.xhtml?story_id=64046
Microsoft released critical fixes on Patch Tuesday for vulnerabilities that could leave the door open for worms that wreak havoc on business networks. In all, Microsoft released one security bulletin that addresses three vulnerabilities, two of them rated critical.

"Both vulnerabilities rated as critical by Microsoft are server-side remote code-execution vulnerabilities in the Server Message Block (SMB) protocol," said Alfred Huger, vice president of Symantec Security Response. "Remote attackers, even without a username and password, can take advantage of this issue and execute any commands they wish on the vulnerable server."

How Big is the Threat?

Wolfgang Kandek, CTO of Qualys, agreed that none of the three SMB vulnerabilities require credentials or user actions for successful exploitation. In addition, he noted, SMB is installed on all Windows operating systems by default, making it a critical component.

"IT administrators should treat the bulletin with attention, as the vulnerabilities can result in a denial-of-service attack or remote code execution," Kandek said. "The Exploitability Index for this month rates all CVEs at level three, 'functioning exploit code unlikely,' which is surprising to us as there have been discussions on CVE-2008-4114 regarding ways to exploit the vulnerability. Although we have not seen an active exploit in the wild, we were able to reproduce the denial-of-service condition in a lab environment. It is interesting that Microsoft would rate it a three, as there has been knowledge shared on how to exploit it."

Even though the SMB vulnerabilities are listed as critical, Andrew Storms, director of Security at nCircle, said nearly all users will find themselves automatically protected by default operating system and firewall configurations. "Despite these existing configuration protections, users are still urged to install this patch ASAP," he said. "Everyone should try to start the new year out right by taking this slow MS month to ensure they have...

Thu, 15 Jan 09
Yahoo Names CEO with Strong Track Record
http://www.newsfactor.com/story.xhtml?story_id=64045
The wait for a Jerry Yang successor is over. Yahoo on Tuesday named Carol Bartz as the next CEO of the troubled Internet company.

Bartz, 60, is a veteran technology executive. She most recently served as executive chairman of Autodesk and also served as CEO of Autodesk for 14 years, leading the company to become a powerhouse in computer-aided design software. During her tenure as Autodesk CEO, the company's revenues climbed from less than $300 million to more than $1.5 billion and its share price increased nearly tenfold.

Bartz's executive experience also includes hands-on responsibility for leading global operations, engineering, sales and marketing organizations for large technology and engineering companies, including Sun Microsystems, Digital Equipment, and 3M.

"There is no denying that Yahoo has faced enormous challenges over the last year, but I believe there is now an extraordinary opportunity to create value for our shareholders and new possibilities for our customers, partners and employees," Bartz said. "We will seize that opportunity."

A Warm Yahoo Welcome

Roy Bostock, Yahoo's board chairman, said Bartz has the right combination of seasoned technology experience and savvy leadership that Yahoo needs. He added that Bartz is admired in Silicon Valley as well as on Wall Street for her deep management expertise, strong customer orientation, excellent people skills, and firm understanding of the challenges facing the industry.

"Carol meets all of the criteria we set for the search and is the only person to whom we offered the job," Bostock said. "The board is united in its view that her energetic and decisive leadership style, coupled with a proven track record of driving growth, operational excellence, and shareholder value, is exactly what Yahoo needs to get back on a path toward achieving its full potential."

Bostock once again thanked Yahoo cofounder Yang for his recent 18-month service as CEO. Yang plans...

Thu, 15 Jan 09
Advertising Spies in Your Mobile Phone
http://www.newsfactor.com/story.xhtml?story_id=64035
Just as advertisers and wireless companies are hoping for the business of marketing on mobile phones to take off, consumer groups are raising pointed questions about the business practices of these companies. On Jan. 13, the Center for Digital Democracy (CDD) and the U.S. Public Interest Research Group (PIRG) filed a complaint with the Federal Trade Commission charging that wireless ad companies need to disclose more to their customers about what data are being collected about them and how those data are being used.

Mobile phones can provide a gold mine of data to marketers. The devices can pinpoint where a person is at any given time and trace any travels during the day. Mobile phones can also relay what kinds of restaurants a person looks for on her phone or which headlines are being read. "You're talking about a device that can identify an individual," says Jeff Chester, executive director of the CDD, a nonprofit group based in Washington. "It's carried with you wherever you go and raises the stakes in terms of consumer protection in the digital era."

Wireless marketers do have voluntary guidelines that require them to get a customer's consent -- called "opt in" -- before collecting data about them. In addition, the Federal Communications Commission ordered mobile marketers in 2007 to get opt-in consent from customers before carriers release information they collect to marketers. But the consumer groups argue that these permission clauses can be buried in the fine print of contracts that customers agree to when they sign up to get, for example, sports updates on their phones. Consumers may not understand that they're agreeing to hand over data about their tastes and location, and that the data information may be used for marketing. The consumer groups want these disclosures to be much more explicit, and...

Thu, 15 Jan 09
Buying on Web to Avoid Sales Taxes Could End Soon
http://www.newsfactor.com/story.xhtml?story_id=64029
Shopping online can be a way to find bargains while steering clear of crowds -- and sales taxes.

But those tax breaks are starting to erode. With the U.S. recession pummeling states' budgets, their governments increasingly want to fill the gaps by collecting taxes on Internet sales, which are growing even as the economy shudders.

And that is sparking conflict with companies that do business online only and have enjoyed being able to offer sales-tax free shopping.

One of the most aggressive states, New York, is being sued by Amazon.com Inc. over a new requirement that online companies must collect taxes on shipments to New York residents, even if the companies are located elsewhere. New York's governor also wants to tax "Taxman" covers and other songs downloaded from Internet services like iTunes.

The amount of money at stake nationwide is unclear; online sales were expected to make up about 8 percent of all retail sales in 2008 and total $204 billion, according to Forrester Research. This is up from $175 billion in 2007.

Based on that 2008 figure, Forrester analyst Sucharita Mulpuru says her rough estimate is that if Web retailers had to collect taxes on all sales to consumers, it could generate $3 billion in new revenue for governments.

It's unclear how much more could come as well from unpaid sales taxes on Internet transactions between businesses. But even with both kinds of taxes available, state budgets would need more help. The Center on Budget and Policy Priorities estimates that the states' budget gaps in the current fiscal year will total $89 billion.

Collecting online sales taxes is not as simple as it might sound. A nationwide Internet business faces thousands of tax-collecting jurisdictions -- states, counties and cities -- and tangled rules about how various products are taxed.

And a 1992 U.S. Supreme Court ruling said...

Thu, 15 Jan 09
Congress Gets Its Own YouTube Sites
http://www.newsfactor.com/story.xhtml?story_id=64027
Tired of YouTube clips of precocious kids, stupid pets or faux superheroes? Try out the videos of House Minority Leader John Boehner, or maybe New York Rep. Charles Rangel, the lawmaker in charge of writing tax bills.

Congress is launching official YouTube channels where members of the House and Senate can create and control videos of floor speeches, hearings or ribbon-cuttings.

Lawmakers frequently use the world's most popular online video service to promote themselves and their causes, but the new channels give viewers a single destination to find out what their representatives are up to and express their own opinions.

The goal of the new launch is to imitate the success of President-elect Barack Obama in using the Internet to connect to a vastly expanded range of people, during his election campaign as well as his Saturday radio addresses.

"This is a big deal because it makes it easy for people to interact" with elected officials, said YouTube spokesman Aaron Ferstman.

"Americans, now more than ever, turn to the Web to get their news," said House Speaker Nancy Pelosi, D-Calif. "Our YouTube channels serve as a direct line to what's happening in Congress." Her office said Pelosi was the first House member to use YouTube, in May 2006.

The lawmaker sites, which can be located on a Google Map interface, are available on http://youtube.com/househub and http://youtube.com/senatehub.

So far, a minority of members have posted videos on the new sites. Rangel, the Democratic chairman of the House Ways and Means Committee, has videos of himself opening a college track meet and talking to ABC's George Stephanopolus.

Boehner, R-Ohio, lists 97 videos, including one introducing the new "house hub" web site. "My colleagues and I are big fans of YouTube," he said.

To facilitate the YouTube agreement, the House and Senate adjusted their rules at the opening of the new Congress...

Thu, 15 Jan 09
Analysts: Global Tech Spending To Retreat in 2009
http://www.newsfactor.com/story.xhtml?story_id=64019
Technology companies face a bumpy ride in 2009.

Global business and government spending on computer, software and communications products and consulting services is expected to decline 3 percent this year, Forrester Research said in a report due out Tuesday.

This would mark the first decline since 2002, when information-technology spending dropped 6 percent after falling the same amount in 2001.

However, this downturn isn't expected to last as long. Forrester projects tech spending to recover next year, rising as much as 9 percent in 2010.

In addition to the recession, the strengthening dollar is also to blame for the drop-off Forrester sees this year. Just as the weak U.S. currency boosted the growth rate of technology purchases made in dollars in 2008, the now-stronger dollar will hurt it in 2009, according to Forrester. Western Europe's technology spending rate is a good illustration of the currency discrepancy: measured in dollars, tech purchases in the region will be down 7 percent in 2009. Tech purchases in euros will be up 1 percent.

To neutralize the effect of currency changes, Forrester also projected the global technology market using a "basket" of local currencies, weighed for how big a share of the market each region holds. Using this measure, technology purchases are expected to have grown by 4 percent in 2008 and post growth of 3 percent in 2009, and 6 percent in 2010.

Certain aspects of technology will fare better. For example, Forrester expects software purchases to total $388 billion this year, the same as in 2008. But computer equipment purchases -- which includes personal computers, servers and storage devices -- are expected to decline 4 percent, to $434 billion. That's because businesses often see software as a moneysaving tool, while buying new computer equipment is something that can be put off until more prosperous times.

There are other trends...

Thu, 15 Jan 09
Could an iNews Rescue the Newspaper Industry?
http://www.newsfactor.com/story.xhtml?story_id=64017
Last Tuesday, Apple's iTunes, the ubiquitous online music store that sold more than 2.4 billion tracks last year alone, changed its own tune, announcing that songs would no longer be sold with copying restrictions and that they would be available at various prices.

The digerati crowed over the collapse of the hated digital rights management (which Apple never liked, either) and record companies kicked up their heels at the thought of leaving behind the tyranny of the 99-cent price point.

But lost in the hubbub was the fact that Steve Jobs and Apple had been able to charge for content in the first place. Remember that when iTunes began, the music industry was being decimated by file sharing.

By coming up with an easy user interface and obtaining the cooperation of a broad swath of music companies, Jobs helped pull the business off the brink. He has been accused of running roughshod over the music labels, which are a fraction of their former size. But they are still in business.

Those of us who are in the newspaper business could not be blamed for hoping that someone like him comes along and ruins our business as well, by pulling the same trick: convincing the millions of interested readers who get their news every day free on newspapers' sites that it's time to pay up.

For a long time, newspapers assumed that as their print advertising declined, it would be intersected by a surging line of online advertising revenue. But that revenue is no longer growing at many newspaper sites, so if the lines cross, it will be because the print revenue is saying hello on its way to the basement.

As a report by Craig Moffett of Bernstein Research stated last year, "The notion that the enormous cost of real news-gathering might be supported by the...

Thu, 15 Jan 09
Obama Too Juicy a Target To Carry BlackBerry
http://www.newsfactor.com/story.xhtml?story_id=64016
Why can't the most powerful person in the world keep his BlackBerry?

Barack Obama, who will take the oath of office as president next week, has repeatedly acknowledged a strong attachment to his Verizon BlackBerry 8830 World Edition smartphone, aka the BarackBerry. But in an interview last week, Obama lamented that the Secret Service and his lawyers appeared to be winning the battle to deny him this electronic link to friends, family and news of the larger world.

"I'm still clinging to my BlackBerry," he said. "I don't know that I'll win."

No doubt millions of e-mail-addicted thumb jockeys can sympathize.

But there are several compelling reasons to separate Obama from his beloved device.

The first is security. Research in Motion, the Canadian company that makes the BlackBerry, boasts that its devices and network were designed from the bottom up to protect the data that passes through them.

When companies (or the White House) install RIM servers on their internal e-mail networks, their employees' BlackBerry messages are heavily encrypted before they are sent to one of RIM's network operations centers and passed on to other devices or networks.

This means that if someone were to intercept a message, it would be virtually impossible to unscramble the contents, RIM says.

The FBI feels comfortable enough with the technology to give BlackBerrys to its employees, although it does not allow agents to transmit classified information over them. The National Security Agency, which is responsible for evaluating device security, said last week that nobody was available to discuss whether it had approved the use of BlackBerrys to send classified military information.

But Obama would be an extraordinarily juicy target for hackers, spies and other snoops who could try to exploit any kind of error made in configuring the device or the White House BlackBerry server to read Obama's e-mail.

Bruce Schneier, an expert...

Thu, 15 Jan 09
AOL Reshapes Itself to a Magazine Model
http://www.newsfactor.com/story.xhtml?story_id=64015
Point a Web browser to Engadget.com, TheBoot.com, or TMZ.com, and elaborate sites about consumer electronics, country music and celebrity gossip will appear on the screen. They could easily be mistaken for stand-alone brands.

But a small link to the owner, in a corner of the screen, shows otherwise. That owner is AOL, the long-suffering unit of Time Warner. And the subtle links are intentional.

AOL is akin to a magazine model of niche titles for fragmented audiences interested in specific subjects, counting more than 70 sites in its publishing portfolio and planning to add 30 more in the coming year. The sites are AOL's latest attempt to make a clean break from its "walled garden" past of dial-up Internet access.

"Instead of having a handful of front doors, we're creating dozens if not hundreds of front doors that are more relevant to advertisers," Bill Wilson, an AOL publishing executive, said in advance of his formal appointment Monday as president of a new business unit to organize the effort, MediaGlow.

MediaGlow represents the third leg of a tripod for AOL, formerly America Online, joining the company's fledgling advertising operation, Platform-A, and its social networking services. Wilson, like other AOL executives, described the three tiers as a "total reinvention of the company."

Given AOL's tattered reputation, a drastic makeover is in the company's best interest. The company, while profitable, continues to suffer drops in display advertising on its sites. Imran Khan, an analyst at JPMorgan, estimated last week that AOL suffered an 18 percent decline in advertising revenue last year. Time Warner has shown interest in selling AOL for more than a year.

Corporate maneuvering aside, tens of millions of consumers visit AOL sites each month, some without even knowing it. The niche strategy is also a trend at other major media companies, said Jonathan Dube, president of...

Sat, 10 Jan 09
CES Shows the Possible Futures for Television
http://www.newsfactor.com/story.xhtml?story_id=63980
Three-dimensional high-definition television. Superthin TVs. Bendable TVs. These and other visions of the future abounded at the International Consumer Electronics Show in Las Vegas.

Panasonic's 3-D FHD

On the floor of the huge trade show, 3-D TV popped out in multidimensional splendor. Virtually every major manufacturer showed at least one 3-D model, including Sony, LG and Samsung. That's the good news for 3-D fans.

The bad news is there were few, if any, details about technologies or rollouts. News reports have indicated that Sony, for instance, hasn't decided which technology it wants to use. LG showed several 3-D monitors that require special glasses and represent several different technologies.

An exception is Panasonic, which announced a 3-D Full HD Plasma Home Theater System (3-D FHD) earlier this week. It uses a 103-inch plasma HDTV and a Blu-ray DVD player that distributes high-definition images to each eye. A special pair of active shutter glasses work in sync with the TV, an experience which Panasonic said provides twice the volume of information as regular full high-def images.

Bob Perry, executive vice president of Panasonic Consumer Electronics, said "plasma is currently the only TV capable of delivering a 3-D Full HD experience, due in great part to its ability to refresh at a speed which enables multiple image display without loss of resolution."

TVs with very high refresh rates were a separate theme at the show, including a 240-Hz set from Sony that eclipses the 120-Hz high-end sets now on the market. The higher rate, much faster than a standard, 60-Hz set, eliminates blur that sometimes happens during fast-moving shots. But Sony's attempt to be top dog in refresh rates was topped by a 480-Hz set from LG Electronics.

Wireless TV

For those who hate dealing with the wires that accompany TVs, several wireless sets were shown that handle high-def signals....

Sat, 10 Jan 09
Microsoft Fights Bugs, Corruption and Overload Issues
http://www.newsfactor.com/story.xhtml?story_id=63978
Microsoft is having quite a week. The company is seeing reports of vulnerabilities before Patch Tuesday, fixing data-corruption issues, and getting flooded with visitors trying to download the beta version of Windows 7.

First up, security. If you didn't patch for the Microsoft Windows Server RPC Handling Remote Code Execution Vulnerability last year, you could be targeted this year through a vulnerability that can be spread through USB ports.

Security researchers are warning of a worm dubbed Downadup. It appeared on Dec. 30 and can not only propagate by exploiting the vulnerability, but also by infected USB sticks and by exploiting weak passwords, according to Symantec.

The W32.Spybot, W32.Randex, and W32.Mytob variants all used almost identical methods to spread, the company said, but the new variant requires more effort to protect corporate networks.

Automatic Execution

"W32.Downadup.B creates an autorun.inf file on all mapped drives so that the threat automatically executes when the drive is accessed. The threat then monitors for drives that are connected to the compromised computer in order to create an autorun.inf file as soon as the drive becomes accessible," Symantec Security Response wrote on the company's blog on Friday.

The worm also monitors DNS requests to domains containing certain strings, and blocks access to those domains so it will appear that the network request timed out. According to Symantec, this means infected users may not be able to update their security software from those Web sites. That's a problem, the company warned, because worm authors generally dish out new variants constantly.

Symantec said it's seeing considerable detections of both variants of W32.Downadup and W32.Downadup.B. The infections are geographically widespread, with the highest infection rates typically in countries with high rates of computer and Internet usage.

"DownAdUp is reportedly getting worse in parts of Europe and Asia. We expect this worm family...

Sat, 10 Jan 09
Whopping Sacrifice: Facebookers Drop Friends for Burger
http://www.newsfactor.com/story.xhtml?story_id=63977
Looks like Burger King has found a way to use social networking to promote its signature Whopper burger. With an unusual strategy, Burger King is using popular social-networking site Facebook as a way to reach out to consumers.

In a new ad campaign featuring a Facebook app, Burger King offers a coupon for a free Whopper -- but it comes with a catch. The campaign offers Facebook members the coupon after they publicly cut 10 of their friends from their Facebook list. Usually, members can delete friends anonymously, but not this time.

The application asks: "What would you do for a free Whopper? Now is the time to put your fair-weather Web friendships to the test. Install Whopper Sacrifice on your Facebook profile and we'll reward you with a flame-broiled Whopper when you sacrifice 10 of your friends."

Whopping Number Being Axed

The campaign, developed by Crispin Porter & Bogusky of Miami, is catching on quickly as many Facebook friends have been sacrificed by people who want a free Whopper.

Each time a friend is traded in for the patty, the app sends a notice to the ex-friend via Facebook's news feed, telling the friend that the user thought a free Whopper was worth more than their friendship. A box is then added to the user's profile page showing their progress toward a free Whopper, asking, "Who will be the next to go?"

Barry Schnitt, a Facebook spokesperson, said the company was not commenting at this point about the application. Asked how many people had downloaded the application and sacrificed 10 friends, Schnitt said, "We don't provide data on third-party applications."

Whoppersacrifice.com, however, had the count at a whopping 69,221 at the time of publication. There are a few limitations to the application; for example, members can receive only one free coupon.

Silly or Strategy?

"It's asking...

Sat, 10 Jan 09
AMD Developing Supercomputer for HD Games
http://www.newsfactor.com/story.xhtml?story_id=63976
AMD is planning a revolution in the cloud -- a gaming revolution. The chipmaker's International Consumer Electronics Show buzz revolved around a plan to develop, deploy and deliver high-definition content through the AMD Fusion Render Cloud, a massively parallel supercomputer.

AMD plans to provide the hardware and engineering resources for the cloud, with OTOY providing technical software development and a middleware layer.

AMD is designing the system to enable content providers to deliver video games, PC applications, and other graphically intensive apps through the Internet to virtually any type of mobile device with a Web browser. The supercomputer promises to do this without making the device rapidly deplete battery life or struggle to process the content.

AMD's Grand Plans

AMD President and CEO Dirk Meyer announced the plans during AMD's Industry Insider Series keynote address at CES. Lucasfilm, Dell, HP and Electronic Arts joined AMD on the stage at the Las Vegas Hilton Theater.

Meyer said this is a supercomputer "unlike any other ever built." AMD is designing the supercomputer to break the one-petaflop barrier and to process a million compute threads across more than 1,000 graphics processors.

"We anticipate it to be the fastest graphics supercomputer ever. And it will be powered by OTOY's software for a singular purpose: to make HD cloud computing a reality. We plan to have this system ready by the second half of 2009," Meyer said.

AMD has a long track record in the supercomputing world. Meyer pointed out that seven out of 10 of the world's fastest machines, including the fastest two computers on the planet, are powered by AMD hardware.

What the Fusion Render Cloud Can Do

The AMD Fusion Render Cloud aims to transform movie and gaming experiences through server-side rendering -- which stores visually rich content in a cloud, compresses it, and streams it in real time...

Sat, 10 Jan 09
SanDisk Launches Fast SSDs for Netbook Market
http://www.newsfactor.com/story.xhtml?story_id=63975
SanDisk is moving into the netbook market with a new generation of flash memory solid-state drives. The company said its new pSSD-P2 and pSSD-S2 SSDs are designed as drop-in replacements for hard-disk drives.

According to SanDisk, a SATA interface with a performance boost makes the new SSDs faster than hard drives in critical aspects. For example, SanDisk said booting and launching applications takes just half the time of a hard drive.

"Netbooks represent the fastest-growing PC segment in 2009 and 2010, yet widespread adoption of SSDs in netbooks has been limited by speed, capacity and cost constraints," said Rich Heye, senior vice president and general manager of SSDs at SanDisk. "With the significant improvements in performance, capacity and low pricing, these SSDs are a perfect fit for the exploding netbook market."

A Growing Market

Netbook sales were about half a million units in 2007, but they are poised to take off. IDC recently hiked its projected worldwide sales to 11 million this year and 41 million in 2012.

"SanDisk's Gen 2 pSSD drives have the best combination of capacity, performance, weight, pricing and power advantages to really excite designers, manufacturers and users of netbooks," said Richard Brown, vice president of marketing at netbook-maker VIA Technologies. "Our latest reference designs will include SanDisk's Gen2 pSSD drives, and we look forward to working with SanDisk to aggressively address the netbook market's needs."

SanDisk's pSSD drives will come to market in February. Their 43-nanometer multi-level cell (MLC) flash memory technology uses SanDisk's patented All Bit Line architecture that maintains performance and reliability.

Aggressive Pricing

"From a size and performance standpoint, netbooks need to leverage their battery power in every way possible, so an SSD drive would make a great deal of sense for this type of application," said Charles King, principal analyst at Pund-IT. "They are also not meant to...

Sat, 10 Jan 09
Skype Extends VoIP To Some Mobile Phones, MIDs
http://www.newsfactor.com/story.xhtml?story_id=63956
Skype is offering its Voice over Internet Protocol service to Android and Java-enabled mobile phones, and to Intel-based Mobile Internet Devices (MIDs). This is the first time the software has been released for mobile users in the U.S.

At the Consumer Electronics Show, Skype announced Thursday the release of a light beta version of Skype for Android and Java-based phones. Java-enabled phones include those from LG, Motorola, Nokia, Samsung and Sony Ericsson.

Call Anywhere

The light version currently does not offer video calls. The capabilities include calls to other Skype users anywhere in the world, sending or receiving instant messages, and making low-rate calls to landline or mobile phones not on the Skype network. Users can also see when their Skype contacts are available online for chatting.

The MID version, also in beta, is for the new category of small consumer devices based on Intel's Atom processor and the Moblin-based Linux operating system. They offer four-to-seven-inch screens, an enhanced Internet experience, and, for some, WiMAX or 3G/4G connectivity.

While Skype on a PC uses an Internet connection, the company pointed out that the light version for mobile phones works where phones work, without needing a Wi-Fi connection. But users do need both calling and data plans from a wireless carrier.

This means the prospect for mobile phones to save on calls via Skype is more complicated than on computers. The company noted that, while the light version requires both air time and data usage, there are no charges for Skype-to-Skype calls or for instant messages to Skype friends. But national calling rates may apply.

'Tension' Between VoIP and Cell Plans

The Skype software is available worldwide, but the company noted that the ability to make Skype-to-Skype calls and low-cost calls to non-Skype landlines and mobile phones are presently only available in 10 countries -- the U.S.,...

Sat, 10 Jan 09
Obama's Request To Delay DTV Stirs Controversy
http://www.newsfactor.com/story.xhtml?story_id=63955
Public announcements, brochures and billboards for the past year have been sending the same message to Americans: Prepare to transition from analog television to digital television on Feb. 17.

Now, despite all the information viewers have received, President-Elect Barack Obama wants to delay the transition because consumers are not ready.

Nearly 20 million households that rely solely on over-the-air television signals will be affected by the end of analog broadcasting. Millions more households that receive over-the-air signals on secondary TV sets will also be affected.

The proposed delay has stirred up anger on both sides of the table -- those for the Feb. 17 transition and those hoping to delay it.

"Consumers have been bombarded with information regarding the Feb. 17 firm transition date, and all available information shows that nearly 100 percent of consumers are aware of the transition and are taking the necessary steps," said Gary Shapiro, president of the Consumer Electronics Association.

As of September, the Federal Communications Commission had spent $2.5 million educating the public about the switch and had an additional $12 million to be used over the past several months.

At the Core

Obama's transition team has said not enough consumers have received the $40 coupon for a converter box and the National Telecommunications Information Administration (NTIA) has reportedly run out of the coupons.

"It is CEA's belief that converter boxes are available now in sufficient supply and consumers are aware of and prepared for the transition," Shapiro said. "Legitimate concerns about the coupon program should be addressed immediately by Congress by addressing the bureaucratic accounting rules that are holding up distribution of coupons despite their availability in abundance."

NTIA received more than 26 million requests for the coupons, and more than 9.9 million have been redeemed, NTIA spokesperson Todd Sedmak said during the FCC's September test switch in Wilmington,...

Sat, 10 Jan 09
Pinching Pennies, Lots of Them, on Technology
http://www.newsfactor.com/story.xhtml?story_id=63940
It's a new year, but economically it still feels like the old one. Everywhere you look, things are being downsized: companies, paychecks, parties, trade shows and so on.

Writing about personal technology at times like these is sort of a weird job. It entails reviewing products that are often expensive and definitely elective. At first glance, it would seem as though spending on electronics would be one very easy place to cut back.

But technology giveth, and technology taketh away. You might think of high-tech gadgetry as something that drains your bank account -- but it can save you money, too. A lot of it.

Herewith, a few suggestions for letting tech save you money. The savings estimates are typical, but of course your mileage may vary, depending on what services you're paying for now.

*

Cut the TV cord. Plenty of 20-somethings and college-somethings are doing this already: they're canceling their cable or satellite TV service. (You can always get your service reinstated once your finances recover.) Instead, they watch TV over the Internet. Sites like SurfTheChannel.com have links to lots of shows, including "Gossip Girl."

The sacrifice: You have to watch TV on your computer screen (unless you hook up your PC to your TV, which is not simple). Some shows still aren't available except from illegal downloads. And, of course, you need high-speed Internet. The savings: $500 to $1,200 a year.

*

Cancel your movie channels. Can't go as far as cutting all your cable service? A premium package like HBO/Showtime or Canal+ is probably adding about $20 a month to your cable bill. If you are in it for the dramatic series and boxing matches or whatever, great. But if you are in it for the movies, you can do much better between on-demand services like iTunes and the multilanguage offerings at your local...

Sat, 10 Jan 09
Software Called R Empowers Data Users
http://www.newsfactor.com/story.xhtml?story_id=63939
To some people, R is just the 18th letter of the alphabet. To others, it's the rating on racy movies, a measure of an attic's insulation or what pirates in movies say.

R is also the name of a popular programming language used by a growing number of data analysts inside corporations and academia. It is becoming their lingua franca, partly because data mining has entered a golden age, whether being used to set ad prices, find new drugs more quickly or fine-tune financial models. Companies as diverse as Google, Pfizer, Merck, Bank of America, the InterContinental Hotels Group and Shell use it.

But R has also quickly found a following because statisticians, engineers and scientists without computer programming skills find it easy to use.

"R is really important -- to the point that it's hard to overvalue it," said Daryl Pregibon, a research scientist at Google, which uses the software widely. "It allows statisticians to do very intricate and complicated analyses without knowing the blood and guts of computing systems."

It is also free. R is an open-source program, and its popularity reflects a shift in the type of software used inside companies. Open-source software is free for anyone to use and modify.

International Business Machines, Hewlett-Packard and Dell make billions of dollars a year selling servers that run the open-source Linux operating system, which competes with Windows from Microsoft.

Most Web sites are displayed using an open-source application called Apache, and companies increasingly rely on the open-source MySQL database to store their critical information. Many people view the end results of all this technology when using the Firefox Web browser, also based on open-source software.

R is similar to other programming languages, like C, Java and Perl, in that it helps people perform a wide variety of computing tasks by giving them access to various...

Sat, 10 Jan 09
Defense Wants Conviction Dismissed in Web Hoax
http://www.newsfactor.com/story.xhtml?story_id=63938
Contending it's not a federal crime to violate the service terms of a Web site, a defense attorney has asked a judge to dismiss the conviction of a Missouri mother in a cruel Internet hoax on a 13-year-old girl who committed suicide.

U.S. District Court Judge George Wu was expected to hear arguments on Thursday to set aside the verdicts against Lori Drew and to enter a judgment of acquittal.

A jury found Drew guilty in November of three misdemeanor counts of accessing computers without authorization.

Prosecutors said Drew violated the rules by helping create a fictitious 16-year-old boy on MySpace and sent flirtatious messages from him to teenage neighbor Megan Meier.

The "boy" then dumped Megan in a message telling her "the world would be a better place without you."

Megan hanged herself soon afterward in her bedroom closet in October 2006.

In his dismissal motion, attorney Dean Steward argued that prosecutors failed to show a crime was committed because his client violated MySpace service terms.

"Put simply, the question is this: Is it a federal crime to violate a Web site terms of service?" Steward wrote. "The correct answer should be a resounding no."

Jurors found Drew was not guilty of the more serious felonies of intentionally causing emotional harm and couldn't reach a unanimous verdict on a felony conspiracy charge.

Prosecutors want Wu to dismiss the conspiracy charge "in the interests of justice," according to court documents. An e-mail message left for prosecutors wasn't returned.

The case hinged on an unprecedented application of computer-fraud law. Drew was not directly charged with causing Megan's death, but she was indicted under the federal Computer Fraud and Abuse Act, which in the past has been used in hacking and trademark theft cases.

Drew faces up to three years in prison and a $300,000 fine. The trial was held in Los Angeles...

Sat, 10 Jan 09
Dell To Slash Ireland Workforce, Shift to Poland
http://www.newsfactor.com/story.xhtml?story_id=63935
U.S. computer maker Dell Inc. announced Thursday it will slash its Irish work force and shift its European manufacturing operations to Poland in a move certain to undermine Ireland's recession-hit economy.

Dell is Ireland's second-largest corporate employer, its biggest exporter and in recent years has contributed about 5 percent to the national gross domestic product. Economists warn that each Dell job underpins another four to five jobs in Ireland.

Managers told its approximately 4,300 Irish employees that 1,900 of them -- overwhelmingly assembly-line workers -- would lose their jobs between April 2009 and January 2010.

By then, the company said, it plans to have transferred the entire Irish production of laptops and desktop computers to a new Dell plant in Poland's third-largest city, Lodz -- where labor costs are at least two-thirds lower than Dell's rates in Ireland -- and to subcontractors chiefly in Asia.

"This is a difficult decision, but the right one for Dell to become even more competitive, and deliver greater value to customers," said Sean Corkery, vice president of operations at Dell's major facility in Limerick, southwest Ireland. He personally broke the news to large groups of employees.

Corkery pledged to "treat affected employees with dignity and respect and offer them every practical support."

But employees leaving the Limerick plant expressed anger at planned layoff payments: a maximum of one year's base pay estimated at euro22,000 ($30,000) for employees with at least eight years' service.

Dell is the dominant employer in Limerick and unemployment is already higher than a soaring national rate nearing 8 percent.

Dell has sent hundreds of Polish staff to Limerick over the past two years to receive training from the Irish workers they are replacing.

"The anger inside there is unbelievable," said Limerick native Mike Killeen, 36, outside the Dell assembly line where he has worked for seven years. He said...

Sat, 10 Jan 09
Review: The Polaroid Camera Is Back, in Digital
http://www.newsfactor.com/story.xhtml?story_id=63933
A strange little ritual used to go along with Polaroid cameras. The shooter would grab the print as it came out of the camera and wave it in the air, as if that would stimulate the chemicals and make the picture appear faster. It didn't. Yet it felt dumb to just stand there, waiting for the picture to develop.

Polaroid stopped making film packs last year, so this little piece of tech culture will soon be just a memory. But just as the film-based Polaroid camera is fading away, along comes its digital replacement.

That's right: Polaroid was set to announce Thursday at the International Consumer Electronics Show that it is introducing a digital camera that produces prints right on the spot. You can even call them "instant" prints, but they take nearly a minute to appear, so they're only as "instant" as the old film prints.

Essentially, the $200 PoGo is a camera that contains a built-in color printer. It produces 2-by-3 inch photos by selectively heating spots on specially treated paper. It has nothing to do with the old chemical Polaroid process, but the prints convey some of the same Pop Art charm: They're grainy and the colors are slightly off, with faces tending toward a deathly blue-green.

The camera is a successor to a standalone printer Polaroid put out last summer, designed to connect to camera phones and digital cameras. When I reviewed it, I noted that if Polaroid combined the printer with an image sensor and an LCD screen, it would be a resurrection of the instant camera. It turns out that's exactly what Polaroid was working on.

Unfortunately, you'll have to wait to get your hands on the camera: Polaroid says it will go on sale in late March or early April.

The camera is a fun product, and people who...

Fri, 9 Jan 09
Palm Announces webOS and Palm Pre Smartphone
http://www.newsfactor.com/story.xhtml?story_id=63954
Palm came out ready to fight in the war of smartphones, not only with a new mobile platform but a new smartphone. The company on Thursday announced the Palm Pre, a smartphone that will be available exclusively from Sprint and compete with Apple's iPhone 3G and Research In Motion's BlackBerry Storm.

The release of the webOS mobile platform wasn't a surprise, as speculation about it was rampant. Palm made the announcements at the Consumer Electronics Show in Las Vegas. In an official blog post, Palm President and CEO Ed Colligan said the new platform will be the basis for more innovation in the next decade.

Details of the new Pre are unknown, including how much it will cost and when it will be available, other than in the first half of the year in the U.S.

Spotlight on Palm

The new Palm Pre will have EVDO, Wi-Fi, Bluetooth stereo, 8GB of storage, and a fast processor. It will have a thin, curvy touchscreen; a three-megapixel camera with flash; a removable battery; and USB 2 connectivity. If the touchscreen fails, there's a vertical slider QWERTY keyboard.

Inside the phone are notification bars that alert the user of text messages and calendar appointments. The phone also uses Palm Synergy to bring Outlook, Google and Facebook together on one calendar.

Analysts have said in recent months that Palm needed to come out strong to stay afloat, especially during hard financial times at the company. The company has the daunting task of recapturing consumers' imagination, according to Michael Gartenberg, vice president of mobile strategy at Jupitermedia.

"I think Palm did what they needed to do --the spotlight was on them," Gartenberg said. "There was no major news coming out of Apple and Microsoft, and they really had the stage all to themselves."

Getting it Right

Now that Palm has...

Fri, 9 Jan 09
Imation Showcases Portable Media Player at CES
http://www.newsfactor.com/story.xhtml?story_id=63953
Florida-based Imation used the International Consumer Electronics Show in Las Vegas to launch a touchscreen portable media player called the TouchMP, as well as some other audio accessories.

Memorex, the brand behind Imation's products, developed the 8GB TouchMP so that consumers could share photos and videos with friends. The TouchMP connects consumers to video and audio with portability, according to the company.

The TouchMP features a 2.8-inch color display and touchscreen LCD with 320x240-pixel resolution that supports full-screen photo views and album art to go with a user's playlists.

"A custom user interface makes it easy to navigate and quickly enjoy media files no matter what type of content you are playing," said Jessica Walton, Memorex global brand director at Imation.

Video is played in Windows Media Video, MPEG-4, Audio Video Interleave, and MP4 formats, and audio is played in MP3, Windows Media Audio, and Waveframe Audio formats. Photos are in JPEG formats.

When, and How Much?

Software included with the TouchMP allows people to use other types of audio and video files, and a rechargeable battery lasts up to 50 hours with audio and three hours of video playback. Imation engineers also had readers in mind and added support for Audible audio books.

Retailers will have the TouchMPs on their shelves in March and are putting a $99 price tag on the device.

"The TouchMP has been very well received," said Jamie Ernst of Imation. "The design, full features and performance and the $99 price point were very appealing."

iPod Accessories

Imation also showed off its entire line of iPod-compatible accessories.

Memorex showed attendees its new Memorex MI9490 Hi-Fi CD Sound System for the iPhone and iPod, which comes with 30 watts of sound, according to the company. The dock comes with a CD player, digital FM radio, and a remote. The product is...

Fri, 9 Jan 09
CEA Predicts Healthy Gadget Market in 2009
http://www.newsfactor.com/story.xhtml?story_id=63952
The 2009 International Consumer Electronics Show is in full swing, and manufacturers are unveiling their latest innovations despite the down economy. What's more, consumer-electronics makers are expecting to sell plenty of them.

Indeed, in what marks refreshing news amid doom-and-gloom headlines, the industry forecast looks healthy. Specifically, the consumer-electronics industry is projected to generate $171 billion in U.S. shipment revenues in 2009. That's according to the Consumer Electronics Association's (CEA) semiannual industry forecast.

Gary Shapiro, CEA president and CEO, announced the forecast Thursday in his opening remarks at CES.

"The CE industry is resilient but not immune from the business cycle. In a tough economy, our products offer high value for entertainment and an entry point for entrepreneurs creating new businesses," Shapiro said. "Innovation will kick-start the economy. The 2009 International CES is a cause for optimism with some 20,000 new products and 300 new exhibitors."

Digital TVs Keep Selling

The CEA isn't just prophesying positive numbers to put a smile on the face of its members. The industry's statistics prove it held its own last year, despite credit crunches, slowdowns and recessions. In fact, the CEA's estimate of final shipment revenues for 2008 showed the industry reached a new high of $172 billion, an increase of 5.4 percent over 2007.

In 2009, overall, CEA projects that domestic-shipment revenues will essentially remain flat at $171 billion, a decrease of 0.6 percent over 2008. But "flat" is welcome news in an economy in which many other industries are seeing major losses.

Digital-TV displays are expected to be the primary driver in the consumer-electronics sector. Digital TVs make up 15 percent of total industry shipment dollars. Digital TVs, of course, are getting a boost from the nation's transition to digital broadcasting. Digital-TV sales are expected to approach 35 million in 2009, an increase of nearly six percent over...

Fri, 9 Jan 09
Ballmer Releases Windows 7 Beta -- with Problems
http://www.newsfactor.com/story.xhtml?story_id=63951
Now that the premature leak of Microsoft's Windows 7 beta is over, Microsoft CEO Steve Ballmer made the operating system officially available Wednesday -- but the release has a hitch. Ballmer announced at the Consumer Electronics Show that Microsoft was making the beta available immediately to MSDN, TechNet and TechBeta subscribers and to the rest of the world on Friday.

"Windows has become the language that over a billion people speak at every country and culture around the world," Ballmer said during his CES keynote speech. "I believe Windows will remain at the center of people's technology solar system."

Vista, the company's most recent operating system, has received a lot of negative feedback since its release and has been the target of many of Apple's commercials poking fun at the OS. Microsoft is serious about Windows 7 and Ballmer said the company is on track to deliver the best version of Windows ever.

"We are putting in all the right ingredients -- simplicity, reliability and speed -- and working hard to get it right and get it ready," Ballmer told the audience.

Keys Don't Work

But did Ballmer forget to add product keys to those ingredients? Just one day after Microsoft released the beta there were problems. Users are reporting no problems with the download, but say they are receiving errors with product keys.

"We can confirm that we are having trouble distributing Windows 7 beta product keys right now," Microsoft posted on its Web site. "Since Windows has a grace period built in before a product key is required, please don't hesitate to download and use the beta without the product key. We will post information here as soon as this is solved."

Windows 7 beta includes a cleaner interface, according to the company, which will allow customers to click through faster in order...

Fri, 9 Jan 09
Cisco Goes Social with New Eos Platform
http://www.newsfactor.com/story.xhtml?story_id=63950
In a product release that could signal a new phase in the evolution of social networking, Cisco announced Wednesday the availability of a hosted social-networking platform designed specifically for the media and entertainment industries.

Called Eos -- short for Entertainment Operating System -- the platform was unveiled at the Consumer Electronics Show in Las Vegas. Cisco says Eos is a powerful platform "that integrates social networking, content management, and site administration features into a single operating environment."

'Communities of Content'

Warner Music Group is one of the first entertainment companies to use the new platform for its artists Laura Izibor and Sean Paul.

Aside from the ability to offer hosted social networking at a fraction of the cost of building your own platform, Cisco is touting the ability to more effectively create "communities of content" for online audiences and fans, allowing content companies to focus on their content, rather than building and maintaining a platform.

Eos, according to Cisco, enables companies to create community-driven entertainment, to enable interaction with content and fans, to blend professionally created and user-generated content, and to personalize content to match users' interests. Site functionality can be defined via flexible, modular software, offering customization driven by particular brands.

Content can be stored in a central library and then utilized across a variety of communities, and the media library can be managed from a single set of controls. Additionally, targeting based on user behavior can increase revenue potential, according to Cisco, and related content can be customized for experiences on different sites.

Content Is the Key 'Social Object'

Features include blogs, posting files, creating customizable profiles, commenting on user-generated and professionally produced content, generating or contributing to a discussion, and connecting with others interested in the same content. Content can be tagged by whether it has been seen by other people who like...

Fri, 9 Jan 09
Yahoo Outlines Plans To Bring Internet to TV Sets
http://www.newsfactor.com/story.xhtml?story_id=63949
Yahoo is making a bid for Internet television. The company's Connected TV group unveiled the next generation of technology and services for Internet-connected televisions, along with a slew of partnerships that promise consumers plenty of options.

The first fruits of Yahoo's partnerships with leading consumer electronics manufacturers, which include Samsung, Sony, LG Electronics, and Vizio, is a widget-based user experience that delivers Web content to TVs. The products that tap into Yahoo's Connected TV technology will be available in the spring.

"Yahoo has combined key attributes of the Internet, including openness, community and personalization, with the power of television," said Patrick Barry, vice president of Yahoo's Connected TV division. "By creating this revolutionary new Internet experience and combining our technology with the global distribution of major consumer electronics partners, we enable consumers to access the relevant information and content to enhance their television-watching experience."

Best of Both Worlds

The manufacturers will make high-definition televisions that tap into the Yahoo Widget Engine. The engine helps consumers find and view online media that matches their interests.

Meanwhile, interactive applications Yahoo is calling TV Widgets will sit at the bottom of the screen, virtually opening the door to Internet services and online media. The widgets allow consumers to access videos from YouTube, do social networking on MySpace, buy and sell on eBay, send messages through Twitter, and use Yahoo's Flickr photo-sharing Web site.

According to Allen Weiner, a research vice president at Gartner, consumers are increasingly looking for a richer TV experience, including the ability to integrate personalized Internet content and interactive experiences.

"Those companies who succeed as leading TV 2.0 portals will be those well positioned to make the connected TV a reality through strong global partnerships, innovative technology, and expertise in creating open platforms," Weiner said. "Developers will have the tools to bring the best of the...

Fri, 9 Jan 09
Pocket-Size Sony VAIO PC Targets Women and Fashion
http://www.newsfactor.com/story.xhtml?story_id=63925
Sony is attempting to reinvent the mini-notebook with the introduction of a sleek and stylish machine that is small enough to easily slip into a jacket pocket or purse. Weighing just 1.4 lbs, the new VAIO P Series Lifestyle PC is roughly the size of a business envelope and as thin as a typical cell phone.

Though 10-inch displays are quickly becoming the norm on many of today's mini-notebook PCs, the ultrawide screen on Sony's new device measures just eight inches diagonally. However, the screen delivers a resolution of 1600x768 pixels and images are displayed in brilliant detail with Sony's Xbrite-Eco LCD technology. The screen is big enough to view Web pages with no side-to-side scrolling required.

Targeting Women

The device's QWERTY keyboard is even smaller than the units typically installed on mini-notebooks, which are about 92 percent of standard laptop size. To make up the difference, Sony has expressly tailored the spacing between keys to help reduce typing mistakes.

Sony says its revamped keyboard is perfect for long fingernails, which is a good indication that the company is aiming the device at women in particular. "Designed for the fashionista in all of us, it's the ideal companion," said Sony Electronics Senior Vice President Mike Abary.

To further enhance the machine's trend-setting appeal, it will ship in an array of colors, including garnet red, emerald green, and onyx black. Matching accessories are also available, including a color-coordinated mouse.

To maintain the device's svelte profile, Sony has replaced the standard notebook touchpad with a pointer stick. The Bluetooth-enabled mouse should help reduce the tedium of solely using the pointer stick.

Under The Hood

The VAIO Lifestyle PC sports a 1.33-GHz Intel Atom processor with 512KB L2 cache; 2GB of 533-MHz DDR2 SDRAM; an Intel graphics media accelerator; a graphics memory capacity of 760MB;...

Fri, 9 Jan 09
Apple Updates Productivity Suite with iWork '09
http://www.newsfactor.com/story.xhtml?story_id=63924
On Wednesday, Apple introduced the latest version of its office productivity suite, iWork '09. Introduced at Macworld, the upgrade offers a variety of new features that Apple hopes will make further inroads into the business world.

Apple CEO Steve Jobs, who is not at the show, said in a statement that the company "continues to demonstrate that innovation is possible in office productivity software," and making presentations, documents and spreadsheets "doesn't need to be complicated."

iWork.com Beta

As part of the iWork '09 release, Apple introduced a public beta of iWork.com for sharing documents online. The site is free during the beta phase and allows other users to write comments on posted documents and download the documents in either iWork, Microsoft Office, or PDF formats.

Each of the tools in iWork have new features. The presentation tool, Keynote, can automatically animate the position, scale, rotation and opacity of any image, graphic or text on consecutive slides. Apple calls it Magic Move. There are also a variety of other effects that work between slides, including text transitions and the ability to animate an object that goes off one slide and onto another.

Apple is also extending features to its other product lines so that the Keynote Remote application, sold separately, now allows a user to look at slides or presenter notes, or to control the presentation, from an iPhone or iPod touch.

Changes in the Pages application include the ability to see menus, format bar, and page navigator only when needed. Support for MathType 6 makes it easier to deal with equations, and support for EndNote X2 enables additions and editing of bibliographic references. There are also 40 new templates for posters, stationery and other uses.

'A Big Thing'

Numbers '09 improves formula writing with more than 250 built-in functions, and there are more chart options, such as mixed...

Fri, 9 Jan 09
Microsoft Wins Verizon Mobile Search Contract
http://www.newsfactor.com/story.xhtml?story_id=63923
In a loss for Google, Verizon Wireless on Wednesday selected Microsoft to provide portal, local and Internet search as well as mobile advertising services. The five-year agreement will begin in the first half of the year, with Microsoft Live Search available on new Verizon Wireless feature phones and smartphones.

Microsoft CEO Steve Ballmer said mobile search and mobile advertising offer tremendous opportunities for innovation and growth. As he sees it, Microsoft is in a unique position to deliver a fully integrated, voice-enabled solution for Verizon's customers.

"We are confident that our advanced mobile-search and mobile-advertising technologies will help consumers get the most out of their mobile computing experiences and help advertisers reach consumers who are on the go more effectively," Ballmer said.

What This Means for Customers

Verizon has its eye on the rapid adoption of a variety of data services and substantial changes in the way wireless customers use their devices. Verizon said both factors are driving the need for new ways to organize and deliver the content customers want.

With Microsoft's Live Search capabilities integrated onto its handsets, Verizon said its customers will have easier access to context-relevant search results. Some devices will also make way for voice-enabled search and location-aware searches that yield maps, directions, traffic information, movie theaters and show times, gas prices, and weather. Verizon said customers will get news and entertainment content such as downloadable full-track songs, videos and games.

Under the terms of the agreement, Microsoft will manage search and display advertising on Verizon Wireless' Mobile Web service, creating a one-stop integrated way for advertisers to reach mobile consumers. Verizon customers will be able to access Microsoft Live Search from a device's home screen, by downloading an application, or through Verizon's service.

Verizon's Search Bet

Wireless data now represents more than 25 percent of Verizon Wireless' revenue. Getting wireless...

Fri, 9 Jan 09
Baidu Web Site Apologizes for Pornography Charge
http://www.newsfactor.com/story.xhtml?story_id=63912
China's most popular search engine Baidu apologized Wednesday for hosting links to pornographic content after it was criticized by the government, saying it was sorry for the negative impact on society.

The Chinese government blocks access to many Web sites it considers subversive or too political, and Internet companies regularly self-censor to keep from running afoul of the authorities.

Baidu and Google were among 19 Web sites criticized Monday for carrying vulgar or pornographic content, as seven government agencies launched a one-month campaign to clean up China's Internet content.

The two companies had failed to take "efficient" measures after receiving notices from the country's Internet watchdog, the government said.

"Besides deleting the obscene content and links concerned, we have improved our regulatory system," Baidu said in a notice on its Web site. "We apologize to the netizens at large for the negative impacts we brought upon the society."

Google could not immediately be reached for comment. A note in Chinese on its Google China blog late Tuesday said it fixed links that contained "vulgar content." It was trying to limit bad content without reducing the effectiveness of its search engine, it said.

China has the world's largest population of Internet users with more than 250 million.

Popular Chinese Web portal Sohu, and Tencent, the company that owns China's most popular instant messaging system, QQ, as well as an Internet portal, apologized separately late Tuesday.

While distributing pornography is punishable under China's law and banned in the country, with foreign pornographic Web sites blocked, distribution of "vulgar" materials is not so clearly defined.

Wang Qiang, a staff member of the Beijing Internet management office, which is responsible for punishing violators, told the China Daily newspaper Wednesday they were working on punishment schemes for the more vague charge of spreading vulgar images.

Fri, 9 Jan 09
China Issues 3G Mobile Phone Licenses
http://www.newsfactor.com/story.xhtml?story_id=63907
China assigned third-generation mobile phone licenses Wednesday to three carriers in a long-awaited step that is expected to prompt $41 billion in spending on new equipment.

Licenses were granted to China Mobile Ltd., China Unicom Ltd. and China Telecom Corp., the Ministry of Industry and Information Technology said. Third-generation, or 3G, technology supports Web surfing, wireless video and other services and the start of service is expected to spur new revenue growth.

China has 650 million mobile phone accounts, according to industry minister Li Zhiyong.

Companies have not said when commercial service will begin.

The awarding of licenses was delayed while China's government developed its own technology to compete with two global 3G standards.

The Chinese-developed standard, TD-SCDMA, was assigned to China Mobile, the world's biggest phone carrier by subscribers, the ministry said. That appeared to be an effort to make sure the new system has the financial and technical backing to succeed.

The two global standards, WCDMA and CDMA-2000, were assigned to China Unicom and China Telecom, respectively, the ministry said.

Chinese carriers are expected to spend 280 billion yuan ($41 billion) on new equipment, Li said in December.

Such sales will be important to global suppliers Motorola Inc., Alcatel-Lucent SA, Nokia-Siemens Networks and Ericsson AB as demand elsewhere slumps. But they face competition from fledgling Chinese producers.

Fri, 9 Jan 09
Macworld Fizzles with No Jobs or Apple Surprises
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Apple Inc. announced plans to drop copy protection from songs sold over the Internet and debuted a slim, big-screen laptop, but with no dramatic products or master pitchman Steve Jobs, the company's final Macworld performance disappointed Wall Street.

Apple shares slid by as much as 2.3 percent, lagging the Nasdaq's 1.5 percent gain and reflecting frustration over the lack of news from the trade conference that had introduced the iPhone to the world.

Investors remain hopeful the firm, expected to focus on marketing this year rather than shuffling out groundbreaking products in the midst of a global economic downturn, will in coming months unveil new desktop products or modifications to its best-selling iPhone.

"There were some innovative products, but no true blockbusters," said Robert Francello, head of equity trading for the Apex Capital hedge fund in San Francisco. "People were bullish going into it, and now they're kind of taking money off the table."

Apple said its iTunes music store, the world's biggest digital music retailer with sales of 6 billion songs since 2003, will offer its 10 million-song library free of digital rights management -- or copy-protection -- by the end of the quarter, for between 69 cents and $1.29 apiece.

Songs will also be available straight to iPhones over the air, instead of through a computer.

The agreement, struck with labels including Vivendi's Universal Music Group, Sony Corp's Sony BMG, Warner Music Group and EMI, brings iTunes in line with rival sites such as Amazon.com and Napster and will heighten competition in an already-tough marketplace, analysts say.

Copy protection was designed to prevent fans from illegally sharing digital downloads, but it also prevents or slows legitimate buyers from moving their own songs between devices.

The widened price range -- a departure from Apple's rigid 99 cent-a-song system -- could wind up boosting revenue for the major...

Fri, 9 Jan 09
Data-Storage Product Roundup
http://www.newsfactor.com/story.xhtml?story_id=63895
Virtualization Management

Platform VM Orchestrator (VMO) 4 accelerates delivery of virtual computer environments while optimizing enterprise operations. The solution optimizes resource utilization, availability and power consumption via a self-service portal that supports delegated administration and lets end-users request/ control their VM usage. A multihost dynamic resource-management engine promotes resource utilization across the virtual environment to remove bottlenecks and server silos according to configurable policies. -- Platform Computing

Access Points

The Scalance W784 line of IP30-rated wireless LAN access points offers IEEE 802.11b/g/a open standards and a QoS feature that prioritizes critical client traffic. Offering enhanced security features, the APs support WPA2 specification and AES for 128-bit encryption, along with MAC address filtering. The units also support both standard and industrial PCF protocol, offering predictable response times and fast roaming times of less than 50 ms. The W784 has one radio and may be operated in Ethernet client mode. Housed in aluminum, the access points can be wall- or panel-mounted. -- Siemens Energy & Automation

In-Ceiling Enclosures

Constructed from lightweight aluminum, PANZONE in-ceiling enclosures feature an integrated cable slack manager and a robust door design with gas-assist cylinders to support a working load rating up to 50 pounds. A two-tier mounting bracket accommodates 2RU of network equipment up to 17.5" deep and an additional 3RU up to 13.5" deep. An integral horizontal slack manager keeps patch cords from blocking side ventilation pathways and standardizes patch cord lengths. The enclosures are available in active and passive versions to accommodate a full range of equipment with secure and accessible network connections. -- Panduit

Network Monitor

With replay speeds reaching 10 Gbps, the NinjaProbe appliance allows network administrators to replay events, enabling recreation of real network scenarios to identify the cause and effect of alarm conditions, load and test networking and security equipment, and actively study user experiences. The solution...

Thu, 8 Jan 09
CES Execs Optimistic Despite Low Consumer Confidence
http://www.newsfactor.com/story.xhtml?story_id=63922
Netbooks, high-quality digital cameras and smartphones are just a few examples of what today's consumers want and are still paying for, despite the nation being caught in a recession.

With consumer confidence decreasing slightly in December and companies laying off employees in droves, it would only be fitting for the 2009 International Consumer Electronics Show to be feeling the pain of a failing economy.

Officials of the Las Vegas show, however, said consumer technology spending will do OK despite the decrease in confidence. More than 130,000 people are expected to walk the show floor looking at what the more than 2,700 exhibitors have to offer.

This optimism comes just one week after the Consumer Electronics Association released its most recent CEA-CNET Index of Consumer Technology Expectations, which measures consumers' confidence in consumer electronics and technology. The index found that confidence in December decreased seven percent, to 78.3. An even greater decrease was from year to year, when the index decreased 13 percent.

Not All Products Created Equally

Consumers are increasingly viewing consumer electronics as a necessity, rather than a luxury, according to Steve Kidera at the Consumer Electronics Association. "They need to be connected to the Internet for work or play, need a cell phone or smartphone to stay connected, and want digital content in their living rooms," he said.

Kidera cited a number of product categories that will fare well in the year ahead, despite the economic downturn.

"Consumers continue to go digital, not just for the transition to television next month, but in other products as well," he said. E-readers (think Amazon Kindle) are expected to jump 110 percent in revenue in 2009 as consumers purchase books online and save space when they travel.

Netbooks will also see strong growth, resulting in a predicted 80 percent growth in revenue, according to Kidera. "These...

Thu, 8 Jan 09
Apple's Music Deal Could Mean the End of DRM
http://www.newsfactor.com/story.xhtml?story_id=63921
In what could be the final nail in the coffin of digital-rights management for music tracks, Apple on Tuesday announced a deal with Universal Music Group, Sony BMG, Warner Music Group, and EMI, along with thousands of independent labels, to offer music files on its iTunes Store without DRM protection.

The DRM-free music is available through iTunes Plus with higher-quality 256 Kbps Advanced Audio Coding for high-quality audio. The music can be downloaded from a computer or to the iPhone 3G.

The DRM-free songs will be available at three price points: 69 cents, 99 cents, and $1.29, with most albums still priced at $9.99. The prices are dependent on what the individual labels charge. Apple CEO Steve Jobs promised "many more songs priced at 69 cents than $1.29."

The RIAA's Sudden Move

The timing is noteworthy. The Recording Industry Association of America began moving to end its lawsuit strategy in December. The RIAA has sued thousands of people over the years for allegedly stealing music on the Internet -- about 35,000 people since 2003 -- but the group is reportedly looking for better ways to protect its members from online piracy.

"The RIAA has been backing away from lawsuits. This deal with Apple might explain why they have been doing that," said Phil Leigh, senior analyst at Inside Digital Media. "Apparently the RIAA was negotiating a big deal with iTunes to sell DRM-free tracks. It seems to me like the RIAA has accepted the inevitable here. This is an endorsement of the abandonment of DRM, signaling a more friendly relationship with the consumer."

Leigh expects the hottest bands to see the higher prices, while older music sells for 69 cents. Even though DRM-free music offers consumers more versatile ways to use tracks on a number of devices, it's the target audience with the least money that...

Thu, 8 Jan 09
Intel Slashes Fourth-Quarter Earnings Expectations
http://www.newsfactor.com/story.xhtml?story_id=63920
In what could be the first of some bad reports from technology giants, Intel on Wednesday announced preliminary fourth-quarter financial data. Revenue was about $8.2 billion, down 20 percent sequentially and 23 percent year over year. That's even lower than Intel predicted on Nov. 12.

Intel blamed weak demand and inventory reductions in the global PC supply chain. Intel's preliminary estimate of gross margin for the fourth quarter is at the bottom of the previous expectation of 55 percent, plus or minus a couple of points.

It could be that as Intel goes, so goes the PC market, according to Charles King, principal analyst at Pund-IT Research. King confirmed that Intel's announcement could be a sign of more bad news to come.

"It looks to me like the demand for its PC chip in particular has really fallen off the cliff, which is not really surprising," King said. "The market in general for PCs over the last quarter has looked grim leading up into the holiday season, and electronics retailers' revenue numbers were pretty awful as well."

A Charge for WiMAX

Intel is also cutting its losses on mobile broadband. As a result of the year-end market price of Clearwire stock, Intel will reduce the value of its investment, resulting in a noncash charge to fourth-quarter earnings of about $950 million.

Intel was one of a handful of companies that collectively invested $3.2 billion last year in the mobile broadband network. Google, Comcast, Time Warner Cable, and Bright House Networks were the others.

Intel now expects the net loss from equity investments, interest and other to be between $1.1 billion and $1.2 billion, up from an expectation of about $50 million.

"Intel has been touting the potential of WiMAX for years now. It looks like if the market for WiMAX ever takes off, it's going to...

Thu, 8 Jan 09
Clearwire Turns on WiMAX Service in Portland
http://www.newsfactor.com/story.xhtml?story_id=63915
Clearwire has switched on its WiMAX service in the greater metropolitan area of Portland, Ore. -- the company's second WiMAX coverage zone in the United States. Early last month, Clearwire completed its transaction to acquire and operate Sprint-Nextel's Xohm-branded WiMAX service in Baltimore, which Clearwire expects to rebrand with the name "Clear."

"Clearwire is reinventing wireless by delivering an unmatched combination of Internet speed and mobility," said company CEO Benjamin Wolff. "We're providing a valuable service designed to improve our customers' productivity and make their lives more enjoyable, wherever they happen to be in our coverage area."

Clear Subscription Options

Under Clearwire's three plans for fixed residential locations, priced at $20, $30 and $40 per month, consumers receive download speeds of 786 Kbps, three Mbps, and six Mbps. By contrast, unlimited mobile Internet usage costs $50 per month. However, cheaper $30 and $40 mobile plans are also available with 200MB or 2GB of monthly Internet usage.

Consumers in need of both stationary and on-the-go capabilities can save up to $20 per month by subscribing to both fixed and mobile plans. A $10-per-day Clear pass is also available for occasional-use customers.

Clear plans for fixed business locations -- priced at $55 and $75 -- deliver download speeds in the four-to-six Mbps range, as well as speedy one-Mbps uploads. The service provider also says it intends to roll out a shared-usage plan in the near future that will enable enterprise-class customers to incrementally add mobile users for just $25 per additional device.

None of Clearwire's new plans require the subscriber to commit to any long-term service contracts. Business, mobile and residential plans can all be purchased by the day or month.

Clear on the Go

When it comes to hardware, connecting to Portland's Clear service is relatively simple and inexpensive. For example, residential customers can lease...

Thu, 8 Jan 09
India Outsourcer Satyam Implodes as Fraud Disclosed
http://www.newsfactor.com/story.xhtml?story_id=63914
Shares of Indian IT outsourcing company Satyam Computers plunged nearly 80 percent after its chairman admitted he had inflated the company's revenue by 33 percent and profits by 10 times.

B. Ramaling Raju, chairman of Satyam, handed in his resignation after admitting to the financial fraud and said the company's board of directors was not part of his deceit. Ram Mynamipati will take over as interim chief executive.

Raju said he had to come clean and tell the truth, which is what Satyam translates to in Sankrit.

"Every attempt made to eliminate the gap failed," Raju wrote in a letter released by the Bombay Stock Exchange. "As the promoters held a small percentage of equity, the concern was that poor performance would result in a takeover, thereby exposing the gap. It was like riding a tiger, not knowing how to get off without being eaten."

The surprise revelation about the company listed on the New York Stock Exchange and BSE sent shock waves through the IT community. Forrester Research had recently released a report on Satyam's success in organically growing the business, and Ernst & Young last year gave Raju its Entrepreneur of the Year award.

Melissa Baratta, a spokesperson for Satyam, said the company cannot speak about anything other than what it has said publicly, but added that the company is preparing a press conference for Thursday, where additional details will be disclosed.

Demand for Answers

The National Association of Software and Services Companies in New Delhi was shocked by Raju's disclosure. "While the law will take its course, this incident is particularly unfortunate as the Indian IT-BPO industry had set very high standards of ethics and corporate governance," NASSCOM said. "This is a stand-alone case of failure of corporate governance, and it is critical that it be viewed in this light."

NASSCOM added...

Thu, 8 Jan 09
Sun Acquires Belgian Cloud-Management Firm
http://www.newsfactor.com/story.xhtml?story_id=63899
Sun Microsystems announced Wednesday it has acquired Q-layer, a cloud-computing company that automates the deployment and management of both public and private clouds. Cloud computing brings computer and data resources onto the Web for higher efficiency, massive scalability, and faster and easier software development.

Q-layer's technology meets with Sun's strategy to help companies build public and private clouds with tools that aim to simplify cloud management and allow users to provision and deploy applications.

"Sun's open, network-centric approach, coupled with optimized systems, software and services, provides the critical building blocks for private and public cloud offerings," said David Douglas, senior vice president of cloud computing at Sun. "Q-layer's technology and expertise will enhance Sun's offerings, simplifying cloud management and speeding application deployment."

Data Center Agility

As businesses continue to rely more on technology to drive mission-critical processes, Sun is betting the agility of the data center will determine the flexibility of the entire company. Q-layer software supports provisioning of services such as servers, storage, bandwidth and applications, enabling users to scale their environments to meet their specific requirements.

Sun is working to position itself as an ideal adviser and partner for companies that want to build cloud computing within their organizations, and for companies and service providers that want to build publicly available cloud services. According to Zeus Kerravala, a vice president at the Yankee Group, this acquisition helps Sun's case.

"This acquisition is a strategic move for Sun," Kerravala said. "Clouds have become very popular. One of the things that's always dismayed me in technology innovation is the management of network applications, servers and other stuff always comes two to three years after the stuff."

Management Is Critical

Since much of the value of clouds is the ability to get the exact amount of resources to run a specific application or service when you need it,...

Thu, 8 Jan 09
Oscars 2.0: The Film Academy Revamps Its Web Site
http://www.newsfactor.com/story.xhtml?story_id=63878
Want to hear Cameron Crowe's thoughts on winning an Oscar or see how king-sized movie posters are assembled? How about a sneak peek at some of the exclusive exhibitions held at the film academy's Beverly Hills headquarters?

It's all at Oscars.org, the newly revamped Web site of the Academy of Motion Picture Arts and Sciences, officially launching Tuesday. Film fans of all kinds are welcome, said AMPAS Executive Administrator Ric Robertson.

"It's for almost anyone with an interest in movies," he said. "Depending on the level of interest, there's something there for just about everybody."

The site is more than an extensive homage to the Academy Awards. Visitors can learn about the academy's vast film and script archives (both open to the public), discover educational programs for young filmmakers, glimpse artwork from upcoming academy exhibitions (Fellini's sketches are on view now) and meet the people who vote on the Oscars via video.

There's also a link to Oscars' YouTube page and a chance to receive automated Oscar trivia questions each day from now until the Academy Awards are presented Feb. 22.

"The Academy Awards is this wonderful, huge phenomenon, and you'd be hard pressed to find anyone who doesn't know what that is," Robertson said. "In a way, that makes it difficult for us to let the world know all the other stuff the academy does."

That's one of the reasons the organization embarked on an eight-month effort to overhaul its site. The group aims to spread the word about its year-round events that encourage appreciation of movies and the folks who make them in a way that appeals to film fans and filmmakers alike.

"We really serve very distinct constituencies: the research community, journalists and the industry," Robertson said. "But the academy is also an incredibly dynamic organization dedicated to movies, and it has an incredible...

Thu, 8 Jan 09
Ohio Company Chosen for Alabama Broadband Project
http://www.newsfactor.com/story.xhtml?story_id=63876
Alabama officials have selected a Cincinnati company for a $1.7 million two-year contract to make Internet broadband service available in all areas of the southern state.

Currently, dial-up Internet access is available using telephone lines in most parts of the state, but the service is slow and sometimes unreliable.

Gov. Bob Riley said Monday his broadband project will make high-speed Internet access with cables or wireless connections available even in rural areas. He said customers will still have to buy Internet access from providers like cable television or phone companies.

Riley said Monday the project would be funded mostly with federal grants.

The contract with CostQuest Associates will go before the Legislature's Contract Review Committee for approval Thursday, but the committee can only delay contracts for up to 45 days, not stop them.

The governor last year created a 34-member bipartisan committee to oversee the expansion of broadband coverage in Alabama. Riley said the committee chose CostQuest after being contacted by more than 2,000 potential vendors.

Riley said in his home county, Clay, high-speed Internet connections are mostly unavailable in rural areas.

"It's depressing to see children go to school and have broadband available and then go home and not have it," Riley said.

At a news conference, Riley demonstrated the capabilities of high-speed Internet by talking with people at locations across the state.

One of those interactions was with Lamar County dairy farmer Will Gilmer, who was on a high-speed connection. He said he mostly has to depend on a slow dial-up connection to order equipment or market his products at Gilmer Dairy Farms.

"I type in a request on my computer. Then I go fix a cup of coffee and I come back and my request is about halfway complete," Gilmer said.

Brewton pediatrician Marsha Raulerson said high-speed Internet connections are making it possible for some of her young...

Thu, 8 Jan 09
Google Gives Dusty Books a New Public
http://www.newsfactor.com/story.xhtml?story_id=63875
Ben Zimmer, executive producer of a Web site and software package called the Visual Thesaurus, was seeking the earliest use of the phrase "you're not the boss of me." Using a newspaper database, he had found a reference from 1953.

But while using Google's book search recently, he found the phrase in a short story in "The Church," a periodical published in 1883 and scanned from the Bodleian Library, at the University of Oxford.

Ever since Google began scanning printed books four years ago, scholars and others with specialized interests have been able to tap a trove of information that had been locked away in libraries and in antiquarian bookstores.

Dan Clancy, the engineering director for Google's book search, said that every month users view at least 10 pages of more than half of the one million out-of-copyright books that Google has scanned into its servers.

Zimmer, whose site is visualthesaurus.com, said Google's book search "allows you to look for things that would be very difficult to search for otherwise."

A settlement in October with authors and publishers who had brought two copyright lawsuits against Google will make it possible for users to read a far greater collection of books, including many still under copyright protection.

The agreement, pending approval by a judge this year, also paves the way for both sides to make profits from digital versions of books.

Just what kind of commercial opportunity the settlement represents is unknown, but few expect it to generate significant earnings for any individual author. Even Google does not necessarily expect the book program to contribute significantly to its bottom line.

"We did not think necessarily we could make money," Sergey Brin, co-founder of Google and its president of technology, said during an interview. "We just feel this is part of our core mission. There is fantastic information in books....

Thu, 8 Jan 09
Samsung: Rethinking the Printer Business
http://www.newsfactor.com/story.xhtml?story_id=63872
In September 2007, Apple upstaged rival electronics retailers with a new product available only at its 180 stores. Billed as the world's smallest laser printer, the SCX-4500 offered all the must-have features of an Apple blockbuster: sleek good looks, buttonless touch controls, and easy set-up. The logo on the front, though, wasn't Apple's. It belonged to Samsung Electronics -- one of the biggest suppliers of flat-panel televisions, cellular phones, and refrigerators in retailing -- which created the stunning, piano-black printer. Intent on toppling industry giant Hewlett-Packard, the South Korean consumer electronics giant spent three years working on its first designer printer before teaming up with Apple for its introduction.

For years, Henry Ford has had nothing on printer manufacturers. Consumers could have any color they wanted -- as long as it was boring beige or gray. But Samsung principal printer designer Bong Uk Lim wanted a new aesthetic. His goal: to create a printer that doesn't look like one. "Most companies ask people to adapt to the product instead of the other way around," Lim says. "As you see with Apple, design is more important than ever before for most products. The same can be made true for printers."

New Model

Pretty printers? It's hardly the razor and blade model that has characterized the printer business, which topped an estimated $130 billion in worldwide sales in 2008. Consumer printers tend to be bulky plastic devices, built to sell at the lowest price possible amid expectations that companies can profit handsomely when customers run out of ink and toner and have to hurry to Best Buy or Staples to buy replacement cartridges.

In a well-guarded office tower in downtown Seoul, Lim gave his four-person design team new marching orders to create a product design so eye-catching that consumers might be willing to pay extra to...

Thu, 8 Jan 09
Obama's Twitter Account Was Hacked
http://www.newsfactor.com/story.xhtml?story_id=63870
A mysterious team of hackers has managed to hijack the Twitter account of US president-elect Barack Obama along with celebrities like Britney Spears, CNN anchor Rick Sanchez and Fox News commentator Bill O'Reilly, Twitter confirmed Monday.

The security snafu on the trendy micro-blogging site came days after a successful "phishing" scheme tricked many users into providing their usernames and logons.

It is unclear whether the hacked accounts were a result of that scheme, but the results were undeniably embarrassing.

Obama's Twitter page, which was last used to deliver a quick victory message on election night, was updated to bring users to a survey site where they could vie to win 500 dollars in free petrol.

The Twitter page of Spears referred to an intimate part of her body, which it said was "about 4 feet wide with razor sharp teeth." Sanchez told his fans that "I am high on crack right now might not be coming into work today" while conservative O'Reilly proclaimed that he was gay.

In a blog posting, Twitter said that 33 high profile accounts had been compromised by an individual who hacked into support tools used to help account holders remember their passwords.

"We immediately locked down the accounts and investigated the issue. Rick, Barack and others are now back in control of their accounts," the company said. "We considered this a very serious breach of security and immediately took the support tools offline."

Thu, 8 Jan 09
Lurking Online, a Web Rife With 'Evil Purposes'
http://www.newsfactor.com/story.xhtml?story_id=63850
It can be an e-mail from the widow of a recently deceased Nigerian prince asking for your help in disposing of $5 million.

It can be a message from your bank stating that it needs some personal information so that it can update your account.

Or it can be a seller on eBay who's offering supposedly authentic Tiffany & Co. jewelry at unbelievable prices.

These are prime examples of the online fraud that seemingly lurks behind every unexpected e-mail and many Web sites and that experts say has grown more prevalent in recent years.

"Whenever you have a new technology, at some point there are going to be people who are going to employ that technology for evil purposes," said Jeffrey J. McConnell, a Canisius College computer scientist.

The fraudsters, scammers and phishers -- more on that later -- who populate the online world are part of the downside that comes with the rapid growth of the Internet in recent years.

It's a serious issue, with computer security experts saying that there are millions of victims worldwide who have lost billions of dollars to online fraud. There were more than 1,700 in one year in the Buffalo Niagara region, federal data shows.

The Internet didn't create this problem, which is really a shift by criminals to the Web because that's where people live their lives and conduct their business today, experts say.

"The effect of the Internet is to make it much cheaper for scammers to send out solicitations. This means that scams that formerly were unprofitable because the response rate was so low are now profitable," Eric Rescorla, chief scientist at Network Resonance and an adviser for Voltage Security, said in an e-mail interview Thursday.

This online fraud relies on, and in turn threatens, the trust that is needed for any online transaction and that is the basic...

Wed, 7 Jan 09
Refurbished iPhone 3Gs Being Sold by Best Buy
http://www.newsfactor.com/story.xhtml?story_id=63898
In yet another move to get Apple's iPhone into more retail outlets, Best Buy on Tuesday became the first retailer to offer refurbished iPhone 3Gs at stores nationwide.

The news follows two similar moves in December. That's when AT&T began offering refurbished iPhone 3Gs even as Wal-Mart inked a deal with Apple to sell brand-new iPhone 3Gs at a $5 discount at its stores.

"The refreshed iPhone is a great example of the depth of our offering, and clear evidence of why Best Buy is the best place to purchase a mobile phone," said Scott Moore, vice president of marketing for Best Buy Mobile. "Where else can you get everything you need to make sure your phone can be utilized to its fullest?"

Best Buy's Best Service

Best Buy Mobile stores are now selling the 'refreshed' iPhone 3G at $149 for the 8GB model and $249 for the 16G model. Consumers are required to sign a two-year service contract with AT&T. By contrast, new iPhone 3Gs currently retail for $199 for the 8GB model and and $299 for the 16GB model at Best Buy Mobile.

With the purchase of a refurbished iPhone, Best Buy Mobile customers are guaranteed what the retailer calls Complimentary Walk Out Working. Best Buy promises customers won't leave the store without multimedia and smartphone setup and personalization -- such as e-mail and data transfer -- ensuring that the phone is operating as intended.

Even though the phones are in like-new operating condition -- they were returned during a 30-day trial period and refurbished -- Best Buy also offers extra protection. In addition to a full one-year standard warranty on the refurbished iPhone 3G, customers can also purchase a two-year Geek Squad Black Tie Protection service plan.

Apple's Ambitious Goals

"This actually could be problematic for Apple. Part of Apple's cache is...

Wed, 7 Jan 09
Apple Releases New '09 Version of iLife at Macworld
http://www.newsfactor.com/story.xhtml?story_id=63897
Apple showed a new version of its iLife package Tuesday at the Macworld Conference & Expo, now taking place in San Francisco. iLife is a suite of software programs included with a new Mac, and provides tools such as iPhoto, iMovie, GarageBand, iWeb and iDVD. The newest iLife requires Mac OS X 10.5 Leopard.

One of the 'Biggest Reasons' To Get a Mac

Apple CEO Steve Jobs, who recently announced that he suffered from a "hormonal imbalance" and would not attend this year's Macworld, said the iLife suite "continues to be one of the biggest reasons our customers choose to get a Mac."

iLife '09 offers new features in all of its constituent programs. In iPhoto '09, a feature called Faces utilizes facial recognition to identify people in pictures, who can then be named and automatically identified across photos. Users can then search by face names or browse with the Faces View.

Places allows iPhoto users to organize their photo collections by place, using either a map that a user can reference and manually tag to a photo, or geotags that automatically import GPS information recorded by many digital cameras.

There is also better integration with social-networking sites, more themes, and other added features. iPhoto lets the user publish to Facebook, for instance, and any name tags added on Facebook can be synced back into iPhoto.

iMovie had been the Rodney Dangerfield of movie editing, never quite earning the respect of video editors. Jobs noted in particular the "advanced but easy-to-use features" in iMovie '09, which tries to address some of the issues about the app's capabilities.

The latest version offers a Timeline View, improvement of dragging and dropping, more control over audio, automatic video stabilization, dynamic titles, animated travel maps, picture-in-picture, green screen, and instant previewing of new video effects. A new Precision Editor...

Wed, 7 Jan 09
Apple Unveils New MacBook Pro, Drops DRM for iTunes
http://www.newsfactor.com/story.xhtml?story_id=63886
Despite this Macworld being Apple's last, despite Apple CEO Steve Jobs not delivering the keynote address, and despite efforts at a silent protest during the keynote, the show went on with great success. Apple had a lot to announce and Philip Schiller, vice president of worldwide product marketing, took his time on stage to announce new products and services.

One new product is a 17-inch MacBook Pro. The laptop features a new Nvidia chipset and is considered the world's lightest notebook at 6.6 pounds and the thinnest at .98 inches. The MacBook Pro comes with the same seamless aluminum case the company has used in its notebook computers, an LED display that supports 1920x1200 pixel resolution, and improved viewing angles.

Energized Apple

One major change in the updated MacBook Pro is a battery that is expected to last eight hours on a single charge for the 9400 M and seven hours on the 9600 GT. It can be recharged 1,000 times instead of 200 to 300 times for other notebooks.

"A seventeen-inch Mac is not mainstream, but if you are in the market for that product, that's a nice upgrade for the features and value," said Michael Gartenberg, vice president of mobile strategy at Jupitermedia, who is at Macworld.

While Apple considers the new battery innovative, Gartenberg said it may be controversial because the battery is not removable. "This battery has a life span of five years, you will never have to replace the battery, you don't need to carry a battery, and still users who have grown accustomed to having a replaceable battery may not like the change," he said.

The battery may be a pain for some users, but others may like that it is environmentally friendly. Apple engineers developed a technology called Adaptive Charging to do this. A microchip on the battery...

Wed, 7 Jan 09
HP Mini 2140 Offers Multiple Mobile Options
http://www.newsfactor.com/story.xhtml?story_id=63865
Hewlett-Packard is previewing a new mini-notebook aimed at mobile professionals and students looking for a small, portable package capable of delivering a full-blown computing experience.

Housed in an all-aluminum case, the HP Mini 2140 measures just 10.3x6.5x1.05 inches and tips the scales at a minimum weight of 2.6 lb. "The sturdy, lightweight HP Mini 2140 integrates innovative functionality to keep on-the-move executives connected without weighing them down," said HP Vice President Dan Forlenza.

Under the Hood

The HP Mini 2140 sports a 10.1-inch diagonal LED screen featuring a panoramic, 16:9 aspect ratio. Buyers may elect to configure their machines with a standard-definition, 1,024x576-pixel Illumi-Lite display or upgrade to a high-definition Illumi-Lite version featuring 1,366x768-pixel resolution.

HP's compact machine also integrates a touchpad as well as a QWERTY keyboard that scales to 92 percent of the standard notebook size. Moreover, a clear coating has been applied to the top of the machine's keys that protects the finish and printed letters. HP claims its DuraKeys coating will provide 50 times more resistance to visible wear than keyboards without it.

Under the hood, the HP Mini 2140 sports a 1.6-GHz Intel Atom N270 processor with 512KB L2 cache; an Intel 945GSE Express chipset; Intel's GMA 950 graphics technology; and 1GB or 2GB of 800-MHz DDR2 SDRAM. The mini-notebook also has a built-in VGA Webcam; 10/100/1000 Ethernet; an express card and secure digital slots; and two USB 2.0 ports.

When it comes to wireless, buyers can choose between two different Wi-Fi configurations: 802.11a/b/g/draft-n or 802.11b/g. A Bluetooth 2.0 module is also available.

Buyers may elect to run with an optional 80GB solid-state drive or go with a conventional hard disk drive with a maximum capacity of 160GB. A three-axis digital accelerometer chip helps mitigate the risk of a hard disk drive crash. When the accelerometer...

Wed, 7 Jan 09
Microsoft Xbox 360 Sales Jump To 28 Million Worldwide
http://www.newsfactor.com/story.xhtml?story_id=63864
In the face of a tough economy, the gaming industry held its own during the 2008 holiday shopping season. Nintendo's Wii was the overall winner, but Microsoft also had some strong numbers.

In fact, Microsoft's Xbox 360 video-game console recorded its biggest year. Microsoft sold more consoles, games and online entertainment experiences than in any previous year despite an economic downturn.

In a major milestone for the platform, Microsoft reported total sales of Xbox 360 systems have reached 28 million worldwide. That widens the product's lead over Sony's PlayStation 3 to more than eight million units.

A Pivotal Year

Don Mattrick, senior vice president of Microsoft's interactive entertainment business, said 2008 will be remembered as a pivotal growth year for the Xbox.

"Worldwide, a record number of players flocked to our broadest games and entertainment lineup ever, while the New Xbox Experience thrilled millions of fans by making our console even more engaging," Mattrick said. "And yet, we've only provided a glimpse into the new world of interactive entertainment that we're imagining. The best of Xbox 360 is yet to come."

The Xbox Live community grew to more than 17 million active members as online consumer spending increased 84 percent from last year. Since the launch of the Xbox 360 three years ago, more than $1 billion has been spent on Xbox Live. Microsoft attributes much of this growth to the launch of the New Xbox Experience, a broad selection of games, TV shows, and movies, and to market price points starting at $199.

"Certainly the price cuts and again the overall popularity of video-game consoles in general during relatively low economic times is a good thing and something that's worked in Microsoft's favor," said Michael Gartenberg, vice president of mobile strategy for Jupitermedia. "Sony has been challenged with high price points and delivering games that...

Wed, 7 Jan 09
Android Fans Watch HTC Release a Windows Phone
http://www.newsfactor.com/story.xhtml?story_id=63863
Many observers of this year's Consumer Electronics Show in Las Vegas are waiting to see what kind of presence the open-source Android mobile-phone platform will have among new smartphones. Some have speculated that HTC, which makes the pioneering T-Mobile G1 Android handset, might release its own Android model.

But HTC currently is announcing only its new Windows Mobile 6.1 phone, the S743, which it described as "a compelling fusion of style and power." The new model features a 12-key keypad with a QWERTY keyboard that slides out, a 2.4-inch QVGA display, a 3.2-megapixel camera, an additional VGA camera for video calls, Bluetooth and support for high-speed HSDPA (850/1900-MHz) networks.

'High Design, High Performance'

Jason Mackenzie, vice president of HTC America, told news media that the S743's "high design and high performance," packed into 4.9 ounces, "is a great example of HTC's rejection of a 'one-size-fits-all' philosophy." He added that the company intends to bring "the benefits of mobile convergence to all consumers."

HTC may be eschewing one size, but it has designed the handset to fit the average palm ergonomically, with a width of only 1.7 inches. The smartphone orients both vertically, for the keypad, and horizontally, for the pull-out keyboard, a "faceted" arrangement similar to the earlier HTC Touch Diamond. The resemblance to the Touch Diamond is a kinship HTC readily acknowledges.

The S743 also fits in with office and personal e-mail, as it is built to interface with Microsoft Exchange and POP3 and IMAP4 e-mail protocols.

At the moment, the S743 is not exclusive to a carrier, and is expected to be sold unlocked for any GSM network when it is released later this quarter. The company said it will be available through "independent channels" in the U.S., including dell.com and cdw.com. But without carrier subsidies, the price, rumored to be in the...

Wed, 7 Jan 09
Motorola Phone Made From Recycled Plastic Bottles
http://www.newsfactor.com/story.xhtml?story_id=63862
Motorola on Tuesday announced two new mobile devices with social responsibility and social connectivity in mind. The Moto W233 Renew is made of plastic from recycled water bottles, while the Motosurf A3100 is a high-speed touch tablet with a customizable home screen. Both devices are debuting at the Consumer Electronics Show.

"Increasingly, we are seeing more tech vendors deciding not to talk about things like feeds and speeds but rather about how eco-friendly their devices are," said Michael Gartenberg, vice president of mobile strategy for Jupitermedia. "As long as it remains a concern for consumers, we are going to continue to see vendors use it as a marketing tool to differentiate their products."

An Environmentally Responsible Design

Motorola is touting the Moto W233 Renew as a device that reduces your carbon footprint without sacrificing quality. The plastic housing is made from recycled water bottles and is itself 100 percent recyclable. Motorola claims it is the world's first carbon-neutral phone.

Through an alliance with Carbonfund.org, Motorola offsets the carbon dioxide required to manufacture, distribute and operate the phone through investments in renewable energy sources and reforestation. The phone has earned Carbonfund.org's CarbonFree Product Certification after an extensive product life-cycle assessment.

"Today, natural resources, energy and time are more precious than ever before," said Jeremy Dale, corporate vice president of global marketing at Motorola Mobile Devices. "From the product's design, to the packaging, to our partnership with Carbonfund.org, we wanted to ensure that this device makes the right impact with consumers and the environment."

Standing Out from the Crowd

Motorola also addressed environmental concerns with the packaging. Motorola reduced packaging size by 22 percent and the box and all the materials inside are printed on 100 percent recycled paper. The handset maker includes a postage-paid recycling envelope that encourages consumers to return their previous mobile phone for recycling...

Wed, 7 Jan 09
Long, Loud iPod Use Can Cause Hearing Loss
http://www.newsfactor.com/story.xhtml?story_id=63845
They're called the iPod Generation -- all those kids wired to earbuds and MP3 players this holiday season as they hunker down to endure long road trips or relatives that visit even longer. But they're at risk of becoming the "Huh? What?" Generation.

You've heard of BlackBerry Thumb? Now there's iPod Ear.

With the increasing popularity of MP3 players -- and the loud, long listening habits of today's youths -- millions of children and teens are at a newfound risk of noise-induced hearing loss. Doctors around the country say they are seeing younger and younger patients with hearing-loss symptoms that typically don't occur before middle age. Many of them blame constant use of iPods and other players that blare music directly into ears.

Similar concerns were raised with Sony's Walkman in the 1980s, but the difference is that the latest portable stereos hold thousands of songs and have longer-lasting batteries. Because hearing damage is directly related to the duration of exposure -- not just volume -- one fear is that steady, long-term exposure to even moderately loud music could result in premature hearing loss.

"Once these things became portable and full-time usable, we really started noticing more noise-induced hearing-loss problems in younger children," said Dr. Robert Fifer, director of Audiology and Speech Pathology at the University of Miami's Mailman Center for Child Development. "We're seeing the same kind of hearing loss we used to see in older people who worked in factories for years."

Hearing specialists say the cases they are seeing might be only the beginning for this generation because accumulated noise damage can take years before it causes noticeable problems. Fifteen-year-olds who regularly crank the volume on their players might not experience noticeable problems until their mid to late 20s.

The research isn't conclusive, but the warning signs are there:

The number of Americans...

Wed, 7 Jan 09
Blu-ray Format Faces Uncertain Prospects
http://www.newsfactor.com/story.xhtml?story_id=63843
The Consumer Electronics Show starts Wednesday in Las Vegas under the dark cloud of a recession and a sharp downturn in consumer spending.

Nearly 2 million square feet of convention hall will be stocked with the latest mobile phones, portable music players, digital cameras and expensive flat-screen televisions.

But many eyes will be on Blu-ray, which for the first time has the floor largely to itself as the heir apparent to the DVD. Over the last decade, DVD players and discs have generated tens of billions of dollars for Hollywood and the consumer electronics industry, so the pressure for a blockbuster sequel is high.

This year will be crucial for the new format. Heavy holiday discounting and the natural decline in electronics prices over time have pushed prices for some Blu-ray players under $200, a drop of well more than half in the last few years -- and into the realm of affordability for many. At the same time, Blu-ray's backers, including Sony and the Walt Disney Co., face a growing chorus of skeptics that says the window for a HD disc format may be closing fast.

One reason is that discs of all kinds may become obsolete as a new wave of digital media services starts to flow into the living room. On Monday, for example, the Korean television maker LG Electronics plans to announce a new line of high-definition televisions that connect directly to the Internet with no set-top box required. The televisions will be able to play movies and television shows from online video-on-demand services, including Netflix.

"The Blu-ray format is in jeopardy simply because the advent of downloadable HD movies is so close," said Roger L. Kay, president of Endpoint Technologies Associates, a research and consulting company.

"Streaming video from the Internet and other means of direct digital delivery are going to...

Wed, 7 Jan 09
Companies Seek PC Alternatives
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PCs are so 2008. Computer users are warming to personal computer alternatives, including netbooks, handheld mobile devices -- and in a growing number of cases, machines that work in tandem with so-called virtual desktop software, a technology that makes it possible to deliver desktop software and files from another location like a data center.

That was the case for Mark Lopez, an IT manager for auto-parts maker Lear. When he set about finding less expensive alternatives to the PCs in use in Lear's factories, he turned to devices made by NComputing that effectively let multiple workers share a single PC.

Here's how it works: Each user has a monitor and keyboard, but instead of a hard drive, there's a small device about the size of a potholder attached to it. Those small devices, in turn, connect to one PC with special software that lets as many as 30 people share one computer. "The users don't notice any difference," says Lopez, who adds that about 400 people in 17 factories at Lear are using NComputing's devices. Those devices cost $150 to $200 per user, far less than the cost of buying a new PC. Lopez figures that PC alternatives have saved Lear about $125,000.

Little Gizmo Called a Thin Client Even as PC prices drop, some companies are finding that they still want lower-priced alternatives. As enterprises begin to experiment with virtual desktops, some are discovering they don't necessarily need to give workers a full-fledged PC.

A commonly used PC alternative is a stripped-down machine called a thin client. "Typically, thin clients are not as cheap as the very cheapest computers but they're cheaper than the midrange computers" says John Burke, principal research analyst at consulting firm Nemertes Research. Since these devices involve fewer components, they draw less power and tend to last longer as...

Wed, 7 Jan 09
Ten Business Predictions for 2009
http://www.newsfactor.com/story.xhtml?story_id=63837
Two words apply well for the year just ended: Whoa, Nelly! With the financial markets in chaos, the jobs landscape littered with layoffs, and the most audacious outpouring of federal funds since the Great Depression, most of us are ready to look forward to cheerier times in 2009.

Here at BusinessWeek, we've again donned our prognostication helmets and took a gander into the old crystal ball for a few (educated?) guesses at what this new year holds in store. True, we failed to predict the two major events of 2008 -- the election of Barack Obama and the financial meltdown rippling across the world economy. But we did nail one call: 2008 was the year of $100-per-barrel oil -- we just didn't anticipate its stunning slide back to $40.

Recession Reigns

Expect more budget cuts, layoffs, shutdowns, bankruptcies, and mergers. Look for beleaguered bookseller Borders Group to slip into Chapter 11, and for Barnes & Noble to take over some of those stores -- but only a few. Also expect Chrysler to merge into General Motors at a bargain-basement price as Chrysler's private equity owners at Cerberus Capital race to get that investment off their books. With the rapid collapse of oil prices, and the resulting financial pressures, expect two or more mergers among Big Oil. Our best guess? Royal Dutch Shell buys troubled BP, in part to avoid regulatory issues that could come from merging with a U.S. oil company. There will also be tremendous pressure on wireless phone prices, causing financial headaches for companies like AT&T. Newspaper companies' profits will continue to shrink; watch for a billionaire such as financier George Soros or New York Mayor Michael Bloomberg to lead a rescue of The New York Times, which will become part of a not-for-profit corporation by the end of the year.

Bernanke:...

Wed, 7 Jan 09
Colleges, Offices Are Scrapping Landline Phones
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Jennifer Wunder, an associate English professor at Georgia Gwinnett College in Lawrenceville, Ga., says she likes to keep her college-provided cell phone handy to send text messages and e-mails to students.

Wunder, 38, says her interaction with students is way up because she's reaching students on the same device they use.

"It's an incredible educational opportunity," she said.

On Jan. 7, she'll join about 75 fellow employees who will unplug their office phone and go wireless for good, said Lonnie Harvel, the school's chief information officer.

The public college is one of a growing number of businesses and organizations across the USA that are shedding traditional land lines and replacing them with cell phones or voice over Internet protocol (VOIP) technology in an effort to save money during tough economic times.

There are no national statistics available on how many of the nation's businesses have cut the cord. Lisa Pierce, vice president of Forrester Research, a marketing consulting firm in Cambridge, Mass., estimates about 25 percent of businesses are starting to phase out desk phones. More than 8 percent of employees nationwide who travel frequently have only cell phones, says Bill Hughes, an analyst with In-Stat, a marketing consulting firm in Scottsdale, Ariz.

"In the business environment, it's really a matter of a company saying, 'This will save us money,' " Hughes said. Robert Rosenberg, president of The Insight Research Corp. in Boonton, N.J., said U.S. businesses lag behind Europe and Asia in going wireless because major cellular carriers, such as AT&T and Verizon, are also earning money by providing land lines to businesses -- an $81.4 billion industry in 2008, he said.

Rosenberg said businesses nationwide spent $51.7 billion on wireless devices this year but in five years will double that to $107.6 billion, overtaking their expenses for land lines.

U.S. tax law is a hurdle for...

Tue, 6 Jan 09
Targeted: Twitter Hit with Phishing Attack
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Twitter, the popular microblogging site, has become the latest target of phishers. The company is warning its members to be careful of messages that redirect them to spoofed Twitter sites in an attempt to steal their user names and passwords.

"This particular scam sent out e-mails resembling those you might receive from Twitter if you get e-mail notifications of your Direct Messages. The e-mail says something like, 'hey! check out this funny blog about you ...' and provides a link," the company said.

Twitter went on to explain that the link redirects users to a site masquerading as the Twitter front page. Twitter advised its members to look closely at the URL field to see if it has another domain besides Twitter, but looks exactly like the microblogging home page. That, the company said, indicates a fraud.

If You Get Twicked

E-mail, cell phones, Facebook and now Twitter all have something in common: They are being used by fraudsters for phishing attacks, observed Marian Merritt, Symantec's Internet safety advocate.

"The scam messages, just like the phishing e-mails and Facebook phishing attacks, seem to come from someone you know and appear to be personal," Merritt wrote in the Norton blog.

For members who have clicked the link and given up their Twitter password to the phishers, the company said it is possible for the phisher to send out direct messages on your behalf that could trick your followers. In those cases, Twitter said users should proactively reset the passwords of their accounts.

"If you find yourself unable to log in to your account with your user name and password, please use the reset password link to regain access. This will send an e-mail to the address associated with your account, and you'll be able to create a new password," the company advised.

Will the Real Twitter Please Stand...

Tue, 6 Jan 09
China Says Google and Baidu Push Vulgar Content
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China is moving to rein in Web sites it deems inappropriate. The Communist nation has targeted Google and Baidu, the two dominant search engines there. The charge is spreading pornography and vulgarity.

China's Ministry of Public Security and six other government agencies launched the campaign on Monday.

The government "decided to launch a nationwide campaign to clean up a vulgar current on the Internet and named and exposed a large number of violating public morality and harming the physical and mental health of youth and young people," said a report on state television.

Low-Class, Crude and Damaging

China's government identified 19 Internet operators and Web sites that had not made moves to remove "vulgar" content. These operators and Web sites also allegedly failed to heed warnings from censors, according to the television report.

"Some Web sites have exploited loopholes in laws and regulations," said Cai Mingzhao, a deputy chief of the State Council Information Office. "They have used all kinds of ways to distribute content that is low-class, crude and even vulgar, gravely damaging mores on the Internet."

Repeat violators, as well as those that have a "malign influence," might be exposed, punished or even shut down, according to China.com.cn, one of the nation's official news Web sites. On Monday, the Financial Times reported that the Chinese government is arming censors with more advanced filtering software to catch the banned content.

Same Old Threats

According to Leslie Harris, CEO of the Center for Democracy and Technology, China is trying to flex its muscles. However, she said, if China is seriously concerned about vulgar content -- and if it is illegal -- then the government ought to take its complaint to Internet service providers.

"This is just a threat, and I think it's the same old-same old dressed up in rhetoric that is more internationally acceptable," Harris said....

Tue, 6 Jan 09
Palm To Launch Nova OS, and Maybe a Smartphone
http://www.newsfactor.com/story.xhtml?story_id=63859
Palm's next-generation Nova operating system has been in the works for more than a year and is expected to be released this week at the Consumer Electronics Show in Las Vegas. Also rumored is one more surprise -- a new smartphone using Nova.

Although the rumor of a new phone has been swirling since last month, it's expected to debut at CES on Thursday.

Jon Rubinstein, Palm's executive chairman, told Business Week that the company will launch a product that bridges Research In Motion's BlackBerry devices and Apple's iPhone. Rubinstein worked for Apple for nearly a decade.

Perfect Timing

Although analysts are seeing a downturn in mobile-phone sales, converged mobile devices such as smartphones are racking up success. Smartphones have most of the features of mobile phones, including personal information management, games, office applications, and multimedia, but a major differing factor is the operating system.

High-level operating systems -- including Android, BlackBerry, Linux, Mac OS X, Palm and Symbian -- are helping the smartphone market stand out, according to IDC.

Smartphones are expected to grow 8.9 percent worldwide this year, according to IDC. Beyond 2009, growth is expected to return to double digits faster than the overall mobile-phone market.

But will Palm have a piece of that market? Some observers are already counting Palm out, while others insist that's premature.

Palm's Future

Palm's move to release a new OS and phone could not come at a better time for the struggling company. A successful operating system will save Palm from a lot of speculation about what it has been working on in the past year.

"This will be a way for them to say you have all this money from U2's Bono and Elevation Partners -- what do you have to show for it?" said Ramon Llamas, senior analyst of mobile devices, technology and trends...

Tue, 6 Jan 09
Revamped FileMaker Pro 10 Arrives with New Design
http://www.newsfactor.com/story.xhtml?story_id=63858
As Macworld gets under way, FileMaker has announced a new version of its database software: FileMaker Pro 10. The new product line also includes FileMaker Pro 10 Advanced, FileMaker Server 10, and FileMaker Server 10 Advanced.

The company says the new interface "delivers the most dramatic design changes in over a decade." Among other things, there's a newly redesigned and customizable status toolbar, which makes commonly used features more easily available to save time.

Search Saves, Script Triggers

Other new features in the latest FileMaker include the ability to automatically save the results of a search and script triggers, which allow scripts to be launched based on user actions or time limits.

The saved searches can be named as a set, so a user, for instance, can find all customers in a given region who meet a given set of criteria -- and save and name the results. The saved searches can also be specific to a user.

A script trigger, comparable to a spreadsheet macro, can help automate tasks and increase productivity. The trigger can be called by a specific action, such as clicking in a field; FileMaker Pro 10 comes with five predefined, object-based triggers, and seven layout-based triggers.

For reports, the new product allows a user to make changes in underlying data from within a report, and changes to data will immediately be reflected in the database.

Enhanced SQL Support

A new "See It, Use It, Learn It" interface is intended to get users up and running quickly. Ten new layout themes and 30 starter databases, including such applications as invoicing and asset management, are included in version 10.

Enhanced support includes the ability to display, access and use data from more SQL sources than before, such as SQL tables in Microsoft SQL Server 2008, Oracle 11g, and MySQL 5.1 community edition. Additionally, a new function...

Tue, 6 Jan 09
Lenovo Releases Dual-Screen Mobile Workstation
http://www.newsfactor.com/story.xhtml?story_id=63857
Lenovo has released a new mobile workstation expressly designed to eliminate the user compromise of having only one display available on the go.

Called the ThinkPad W700ds, the new dual-screen machine sports a primary screen with 1920x1200-pixel resolution and a second 768x1280-pixel color display that slides out from the machine's cover. "That's 10.6 inches on the diagonal," said ThinkPad team member Wes Williams.

Covering All the Angles

The integration of a second color screen only contributes a few extra millimeters of thickness compared to the machine's predecessor, the single-screen W700. Like an automobile's rear-view mirror, the second screen can be tilted up to 30 degrees.

The primary color display, which measures 17 inches diagonally, delivers 400-nit luminance performance when users select the WUXGA screen option. By comparison, the luminance delivered by most computer displays typically ranges between 50 and 300 nits.

"The 400-nit display is super-bright," said Lenovo spokesperson Kristy Fair. "There are other optional displays, but the 400-nit is the brightest."

Moreover, the WUXGA screen's 72 percent wide color gamut enables a color intensity boost of more than 50 percent. "Color gamut is the screen's ability to display a wide range of colors -- the higher the gamut, the more intense the colors are," Fair explained. "For users in fields like photography and digital content creation, this is important."

Customization Options

Every time Williams used to go on the road he had to lug around a second monitor, a color-calibration unit, a digitizer and pen, and a backup hard drive as well as the computing system. "Now there is a better way," Williams said.

The ThinkPad W700ds provides users with a wide array of configuration options to meet mobile workstation needs. For example, it can be customized with solid-state storage, dual integrated hard drives that can be configured for high-speed or mirror RAID, and...

Tue, 6 Jan 09
LG Announces Broadband HDTV with Netflix Built In
http://www.newsfactor.com/story.xhtml?story_id=63852
As more movies and TV shows become available via the Internet, making the "last connection" between online and high-definition TVs is the key remaining obstacle to transforming the Net into a full entertainment medium. On Monday, LG Electronics moved to bridge that connection with the announcement of HDTV sets that are broadband-enabled and contain Netflix streaming software.

The new models, including both LCD and plasma, have an Ethernet connection, do not require an external device, and allow Netflix members to watch streaming movies. The new sets will be demonstrated at the Consumer Electronics Show in Las Vegas, which opens this week.

A Growing Alliance with Netflix

The announcement extends LG's growing alliance with Netflix, which offers more than 100,000 movies via mailed DVDs and a smaller but growing collection of more than 12,000 titles available for instant streaming. LG's BD300 Network Blu-ray Disc Player was the first such player to offer streaming movies from Netflix. Recently, LG said its players would also be able to deliver CinemaNow movies on demand and YouTube videos.

The broadband TVs, expected to be available in the spring, will let any Netflix member with an $8.99 per month membership or higher to watch an unlimited number of films.

Netflix CEO Reed Hastings said LG Electronics "was first to embrace Netflix as a streaming partner a year ago" with the Blu-ray player, so it is "fitting" that LG is the first to introduce Netflix streaming to HDTVs.

Netflix members who get the new LG set will use the movie service's online user interface to choose movies and TV episodes. The selections will be available instantly and begin playing in as little as half a minute. The TV's remote control will allow users to browse and choose selections, read summaries, rate movies, rewind or fast-forward.

'Forget the Bridge'

Bobby Tulsiani, an analyst with Forrester Research,...

Tue, 6 Jan 09
Freescale Engineers Low-Cost Netbook Processor
http://www.newsfactor.com/story.xhtml?story_id=63851
Freescale Semiconductor is entering the fast-growing netbook market with a solution that promises to make possible portable devices that feature 8.9-inch displays, eight hours of battery life, and prices under $200.

Freescale's solution is based on its new i.MX515 processor featuring ARM Cortex-A8 technology. The solution includes software, components and resources that aim to help OEMs rapidly develop and deploy netbooks.

"We see a huge opportunity in the netbook market as consumers demand more cost-effective and higher-performing solutions," said Lisa Su, senior vice president and general manager of Freescale's networking and multimedia group. "Our solution for netbooks will enable OEMs to develop compelling products that feature cell-phone-like battery life at extremely aggressive price points."

Explosive Market

Freescale is offering a netbook reference design based on the i.MX515 processor created in collaboration with Pegatron. The reference design incorporates the processor, Canonical's Ubuntu operating system, a new power management integrated circuit from Freescale, the SGTL5000 ultra low-power audio codec, and Adobe Flash Lite for mobile devices.

According to ABI Research, consumers are expected to purchase 140 million netbooks in 2013, compared with only 15 million in 2008. Often priced between $300 and $400, netbooks provide more than enough performance for a host of Internet activities such as social networking, Web surfing and using e-mail.

"As was evident in the 2008 holiday season, the netbook market has exploded due to consumer demand for affordable and compact devices that allow users to conduct routine tasks like social networking or shopping on the Web," said Philip Solis, principal analyst at ABI. "The netbook market is still in its infancy, and it represents a huge market opportunity for companies like Freescale. As advanced platforms for netbooks become increasingly available, price points will drop and the market will expand."

Keeping Costs Low

The Freescale solution is engineered to keep costs low by incorporating highly integrated...

Tue, 6 Jan 09
Apple CEO Steve Jobs Reveals Hormonal Imbalance
http://www.newsfactor.com/story.xhtml?story_id=63831
As the much-anticipated Macworld Conference & Expo begins, Apple CEO Steve Jobs is putting rumors of his health to rest. In a letter addressed to the Apple community, Jobs said he is still in charge and will be the first to inform Apple's board if his health should get in the way of running the Cupertino, Calif.-based company.

Jobs posted the letter after speculation about his health ran rampant following a December announcement that he would not keynote Apple's last appearance at Macworld. Vice President Philip Schiller will deliver this year's keynote on Tuesday.

The CEO said his weight loss throughout last year was not because of his rare form of pancreatic cancer.

A Simple Remedy

"The reason has been a mystery to me and my doctors," Jobs said. "A few weeks ago, I decided that getting to the root cause of this and reversing it needed to become my #1 priority. Fortunately, after further testing, my doctors think they have found the cause -- a hormone imbalance that has been robbing me of the proteins my body needs to be healthy."

Doctors expect it will take some time before Jobs will regain weight and bring his body mass back to normal, according to Jobs. "The remedy for this nutritional problem is relatively simple and straightforward, and I've already begun treatment," he said.

Jobs, who said he is happy to be spending time with his family during the holidays instead of preparing a speech for Macworld, said he wanted to put rumors about his health to rest so that everyone can just relax and enjoy the show.

"I will continue as Apple's CEO during my recovery," he said. "I have given more than my all to Apple for the past 11 years now. I will be the first one to step up and tell our...

Tue, 6 Jan 09
Bringing Broadband to the Urban Poor
http://www.newsfactor.com/story.xhtml?story_id=63818
Anthony Celestine was a latecomer to the Internet Age. The 40-year-old Harlem resident has owned a small Jani-King commercial cleaning franchise since 2004, but until recently, the New Yorker hadn't owned a computer or even surfed the Web or had an e-mail address. "I didn't know what none of that stuff was," he says.

Now he uses the Internet all the time to scout out new customers, communicate with Jani-King headquarters in Dallas, and trade e-mails with fellow franchisees on how to do certain kinds of jobs better. "I talk to my franchise brothers about what works and what doesn't," says Celestine, "I'm learning about new procedures faster than before. It's like riding a bike and then switching to a car. It's just a whole better world with the PC."

Celestine entered that world earlier this year when he moved from Brooklyn to an apartment in Harlem and got a PC and a high-speed Web hookup as part of his rental agreement. Celestine's apartment is owned by Harlem Congregations for Community Improvement [HCCI], a 22-year-old, $240 million nonprofit community development organization based in Harlem's Bradhurst neighborhood. HCCI was able to provide the computer and Internet connection thanks to the efforts of other nonprofit groups and an organization that funds affordable housing projects.

The Broadband Have-Nots

Millions of Americans -- many of them also residents of the inner city -- remain on the other side of the chasm that separates those who have high-speed Internet access from those who don't. President-elect Barack Obama has taken to delivering a weekly address not only over the radio but also through videos on Google's YouTube. Yet almost half of U.S. adults don't have the necessary broadband connections that make it easy to view those messages, according to recent data from the Pew Internet & American Life Project. A...

Tue, 6 Jan 09
Microsoft's Windows Vista: The 64-Bit Question
http://www.newsfactor.com/story.xhtml?story_id=63791
Buy a new copy of Windows Vista or a new computer today, and you'll have a decision to make: Should you go for the 64-bit version of Windows Vista, or the 32-bit version?

We've all been using various 32-bit versions of Windows for years now, but clearly the future belongs to 64-bit computing. What do you need to know before you get a jump on destiny? Here are some answers.

Q: Why would I want to run 64-bit Windows?

A: You'll get access to more system memory. The 32-bit versions of Windows -- Vista and XP -- can access a maximum of 4 gigabytes (GB) of system memory. In practice, however, some of that system memory is reserved for the operating system and other processes, so your applications end up with significantly less. It's not uncommon for a computer with 4 GB of memory installed to have only 3 GB available once the operating system and other processes stake their claim to the memory.

While 3 GB may have seemed like a lot of memory a few years ago, today all you need to do is run a memory-hungry photo program, load a half-dozen large files, and you could be pushing the limits of your installed memory.

The 64-bit version of Windows Vista can access much more than 4 GB of RAM. Vista Ultimate, Enterprise, and Business can access 128 GB of RAM. Home Premium can access 16 GB, while Home Basic will max out at 8 GB.

Having the ability to access more memory in your computer gives you a couple of advantages. First, you can load more applications and more files within those applications. Second, your overall computing experience should be smoother, since swapping from one application to another will hopefully take place in memory and not rely on caching data to the hard...

Tue, 6 Jan 09
Web Pirates in China Raid the Sports World
http://www.newsfactor.com/story.xhtml?story_id=63782
An important National Football League game on a recent Saturday night was dark on millions of television screens, but it lighted up an untold number of laptops.

Millions of U.S. fans could not watch the game between the Baltimore Ravens and Dallas Cowboys on television. Yet they could watch any number of illicit live streams on the Internet.

The major U.S. professional sports leagues are finding that pirated feeds of live games are now common and that they could soon become a menace to their businesses, which are themselves ever more reliant on Internet subscriptions services.

"We never felt that the jewel in our crown, the live games, would be vulnerable," said Ayala Deutsch, senior vice president and chief intellectual property counsel at the National Basketball Association.

The tangible effect on the leagues' business today is small, but the stakes are large: Each sells the rights to its live games to broadcasters for billions of dollars. And each is trying to increase revenue by selling rights for games on mobile phones and the Web.

Major League Baseball has perhaps the most advanced online business among the major sports and offers a season of games streamed online for $79.95, a price that league executives say will be reduced slightly in 2009. Robert Bowman, the chief executive of MLB.com, said that piracy hurt business but that "it's embryonic: It's not widespread, and we have a distinct advantage in that we have a better product."

Deutsch was host recently to a gathering of sports leagues around the world to discuss ways of combating live-game piracy. "We view it as an international issue," she said.

This is because sports leagues abroad face the same issue, and because the pirates themselves, the hubs of the peer-to-peer networks that facilitate the illicit streaming of live games, reside mostly outside the United States....

Tue, 6 Jan 09
Technology Innovations for Tough Times
http://www.newsfactor.com/story.xhtml?story_id=63756
For General Electric, innovation isn't just about developing better technologies; it's also about not wasting cash on the wrong ones. That focus on saving money is even more important now that the economy has gone into a tailspin, dragging down GE's earnings and share price. The company's researchers have a surprising tool that could help: a method pioneered back in Stalin's Soviet Union.

It's called TRIZ, a Russian acronym for the phrase "the theory of solving inventor's problems." The core ideas were dreamed up by engineer and science fiction writer Genrich Altshuller, whose critique of the Soviet Union's record on invention in the late 1940s landed him in the gulag. There, he learned from imprisoned scientists and, when he was released, put together a step-by-step innovation method for people who aren't born with the gifts of Edison or Einstein. Since then, his theory has evolved into an elaborate system for analyzing problems and generating solutions. In contrast to brainstorming, TRIZ uses deep analysis of possibilities based on science and math algorithms.

These days, TRIZ is coming on strong at corporations hungry for new ways to improve innovation and productivity beyond what they've already achieved with the widely adopted Six Sigma and Lean techniques. In addition to GE, TRIZ fans include Intel, Samsung, and Procter & Gamble, as well as smaller companies like FuelCell Energy, a Danbury [Conn.] leader in power-generation fuel cells. The company employed TRIZ to evaluate the expensive flanges it uses to join pipes in its generators. After weighing the component costs, effectiveness, and complexity of assembly, FuelCell switched to a new clamping technique that will slash costs by 50 percent.

Rigorous Review Up Front

GE similarly uses TRIZ at the front end of the innovation process. Small project teams bring problems with them to TRIZ training sessions and use the method...

Tue, 6 Jan 09
A Move Toward More Privacy Online
http://www.newsfactor.com/story.xhtml?story_id=63755
Yahoo has announced that it will no longer hold some personally identifiable search information for more than 90 days. The company is hoping that the new policy will give it a competitive advantage with users who care about privacy. It also is an encouraging development for the cause of Internet privacy.

Many users do not realize that search engines hold onto the words that they type, and the addresses of Web sites that they visit -- often in ways that can be traced back to specific users. If you use Google, Yahoo or Microsoft search engines to find out more about cancer drugs, drug addiction or radical politics, the company may keep that information. And it may turn the data over to the government if presented with a valid subpoena.

Privacy advocates have long objected to these policies. In many cases, they argue, users have no idea that the information is being kept. Some of these advocates have been pushing, in the U.S. Congress, for Internet privacy laws that would limit data retention.

Yahoo has decided to move in a pro-privacy direction on its own. Until now, its policy was to hold onto search data in personally identifiable ways for 13 months. The 90-day limit that it is adopting is considerably better than Google's, which holds onto personally identifiable search data for nine months, or Microsoft's, which holds data for even longer.

Some privacy advocates object to the way in which Yahoo intends to make the data anonymous. The company says that it will remove the last eight bits of a user's Internet Protocol, or IP, address -- a number that can often be traced to a specific computer -- and take other steps to scrub identifiable data. Critics argue that even so, it may still be possible to trace the data back to...

Sat, 3 Jan 09
Much Ado about Zune's New-Year's Bug
http://www.newsfactor.com/story.xhtml?story_id=63830
Microsoft posted a quick fix on New Year's Day for the glitch that made some of its Zune digital music players freeze up the day before, thanks apparently to a leap-year problem encountered by the Zune's internal clock. Since 2008 had an extra day, including February 29th, the calendar/clock on some Zunes got confused about when the new year was about to start.

Michael Gartenberg, VP of mobile strategy for Jupitermedia told NewsFactor.com he hasn't "seen anything quite like this since the Y2K phenomenon," referring to the problems that many feared would freeze computers when the clock advanced at midnight from 1999 to the year 2000. While millions were spent to upgrade computers and software in order to avert a Y2K virtual meltdown, the recent Zune freeze-up was, of course, much less significant.

"It doesn't appear for most users that this was super-serious," Gartenberg said. "If you waited until New Year's Day to plug in your device and charge it back up, most users were fine."

On the other hand, Gartenberg pointed out, it's still embarrassing for Microsoft that the Zune would freeze up at all. The glitch, he said, shows a lack of quality control, and "it definitely is not the type of thing that enhances Microsoft's reputation as a pioneer in consumer electronics."

The Four-Step Fix

On its Zune Web site, Microsoft outlined four steps for owners of the frozen 30-gigabyte Zune players:

First, disconnect the Zune from its USB and AC power sources. Because the player is frozen, its battery will drain, which is a good thing.

Then, wait until the battery is empty and the screen goes black. If the battery was fully charged, this might take a couple of hours.

Wait until after noon GMT on January 1, 2009 -- 7 a.m. Eastern or 4 a.m. Pacific time in the U.S. (now...

Sat, 3 Jan 09
Google Store Will Help Android Developers Earn Cash
http://www.newsfactor.com/story.xhtml?story_id=63829
Google's Android App Market will begin selling applications early this year. Google had promised a way for developers to earn cash for their applications.

Apple's App Store lets developers keep 70 percent of the revenue generated from application sales. RIM's Blackberry Application Store promises to give developers 80 percent of the revenue when its store launches in March.

Google has been promising to add paid applications since its App Market debuted in October. Plans are to give developers 70 percent of the revenues. Google, however, will not keep the remaining 30 percent for itself. Rather, the company will use what's left over to cover carriers and billing-settlement fees.

Google's Official Statement

Mobile-application developer Martin Drashkov is one of many who reported receiving an e-mail from the Android Market on Tuesday. The e-mail from Eric Chu says:

"Android Market will support priced applications starting early Q1 2009, as we'd originally stated last fall. Given the country-by-country work required to set up payment support for developers in different countries, we will enable priced app support in Q1 for developers operating in these countries, in the following order: (1) United States and UK; (2) Germany, Austria and Netherlands; (3) France, Italy and Spain."

Google said it will announce support for developers operating in additional countries by the end of the first quarter and urged developers in the supported countries to finish their applications, including determining the appropriate pricing strategy.

The Impact of Paid Apps

Michael Gartenberg, vice president of mobile strategy for Jupitermedia, is eager to see what types of apps show up at the Android Market now that there is an incentive for developers. "Up until now, there was no way to be compensated for your work," he noted. "That's fine for some folks, but not for many."

It's possible that the incentive could trigger a wave of Android applications. Developers...

Sat, 3 Jan 09
Mac OS X Advances as Microsoft's Windows Drops
http://www.newsfactor.com/story.xhtml?story_id=63828
Apple secured a larger piece of the operating-system pie in December. Mac OS X, which hasn't been a threat to Microsoft's Windows operating systems in the past, is gaining traction.

The market share for Mac OS X rose nearly 10 percent last month, according to Net Applications, a research company based in Aliso Viejo, Calif., which tracts Internet browsers and operating systems.

In December, Apple's Mac OS X had 9.63 percent of the market. While that's not great in comparison to Microsoft's 88.68 percent, it's increasing.

In November, Mac OS X had an 8.9 percent market share. The increase is significant for Apple, which holds the number-two spot behind Microsoft, and a significant increase from 2007 when it had 7.3 percent.

Record Setting and Faster

Usage of Mac OS X was record-setting with a two-month increase during November and December. Those months' combined gain of 1.4 percentage points was larger than Net Applications' previous record, a 0.9 percentage point increase between September and October 2006, and nearly double the 0.73 percentage point increase between November and December 2007.

Just as Apple had a record-setting two months, Microsoft also had a record with the largest decrease in Windows usage in four years -- as long as Net Application has been tracking operating systems. The decrease was also the second consecutive monthly loss for Microsoft. Windows ended the year down 3.1 percentage points, a 3.4 percent drop in its share from the same time in 2007.

Apple's Mac OS X has been attracting more users because with each release it has become faster. Versions 10.0 through 10.4.11 have increased in speed with each new issue and didn't require any additional hardware, according to Apple.

Apple also had more to cheer about as its iPhone 3G had a good month and year in terms of market...

Sat, 3 Jan 09
Firefox, Safari Cut Into Internet Explorer's Market Share
http://www.newsfactor.com/story.xhtml?story_id=63826
The latest data from Net Applications indicates that Internet Explorer lost market share in December to browsers from Mozilla and Apple.

According to the Web metrics provider, Microsoft's browser market share has declined by more than six percent since February 2008. The browser held a 68.15 percent market share in December -- its lowest in years.

By contrast, Mozilla Firefox's market share rose one-half of a percentage point from November and has climbed more than four percent since February to reach 21.34 percent in December.

"Reaching 20 percent worldwide market share is a significant milestone for Firefox and Mozilla," said Mozilla CEO John Lilly last month. "It's a huge achievement by the global Mozilla community, one that just a few years ago most would have considered impossible."

Mac Users Take Safari

Apple's Safari browser has also been chipping away at Internet Explorer's market share for months. Since February, Safari's market share has grown more than two percent to a 7.93 percent share in December.

However, Safari's rising market share is almost entirely due to the rising sales of Mac computers, which ship with Safari. According to Net Applications, the Mac operating system's share of the computer market has risen 2.17 percent since February.

Even Google's Chrome browser, which debuted in early September, exceeded one percent for the first time in December. Among the world's top five Web browsers, only Opera appears to be going nowhere. Opera's market share has hovered around the 0.7 percent mark since February.

Still, Net Applications warned that its reports for November and December should be eyed with caution.

"The December holiday season strongly favored residential over business usage," said the Aliso Viejo, Calif., firm, which provides applications for Webmasters and e-marketers. "This, in turn, increases the relative usage share of Mac, Firefox, Safari and other products that have relatively high...

Sat, 3 Jan 09
VeriSign Drops Vulnerable Certificate Algorithm
http://www.newsfactor.com/story.xhtml?story_id=63825
Following a recent report that an algorithm for creating secure Web-site certificates could be vulnerable, VeriSign has announced it will no longer use the algorithm.

On Wednesday, the provider of Internet trust assurances said it was transitioning from MD5 to the SHA-1 algorithm for its new RapidSSL brand certificates. It also pledged to reissue any RapidSSL certificates created with MD5, using SHA-1.

Fake Certificates in Three Days

Earlier this week, several teams of researchers presented research at the Chaos Communication Congress in Berlin about MD5 problems. The researchers included independent ones from California, as well as teams from the Centrum Wiskunde & Informatica (CWI) and Eindhoven University of Technology in the Netherlands, and the Ecole Polytechnique Federal de Lausanne in Switzerland.

The researchers were able to generate two messages with one digital signature, using MD5. Digital certificates are supposed to have unique signatures. Four years ago, Chinese researchers first identified the vulnerability when they created a similar collision attack.

At that time, the amount of computing power was considered formidable to anyone attempting to create false digital certificates. Researchers had estimated it would take more than 30 years of computer processing to generate such a fake certificate.

But the paper presented in Berlin showed there are more efficient ways. Using more than 200 Sony PlayStation 3 video-game machines in a cluster, the latest research effort was able to generate two fake messages with the same digital signature in only three days.

Observers had differing opinions on the impact of the research. The head of computer security at British Telecom, for instance, told news media that most people don't rely on digital certificates anyway.

Secure Phishing

But many others suggested the impact could be enormous. Although only some sites are using the older digital certificates, all browsers accept them. When visiting Web sites, a locked padlock in a browser...

Sat, 3 Jan 09
Companies Force Workers To Take Unpaid Vacation
http://www.newsfactor.com/story.xhtml?story_id=63813
Here's the vacation no one wants, courtesy of the recession: Forced time off without pay.

Financially struggling American universities, factories and even hospitals are requiring employees to take unpaid "furloughs" -- temporary layoffs that amount to one-time pay cuts for workers and a cost savings for employers. This year, the number of temporarily laid off workers hit a 17-year high.

"If they do it once, I think it's easier for them to try to do it again," said Carrie Swartout, who researches traumatic brain injuries at the University of Maryland Medical Center. Maryland is requiring unpaid time off for 67,000 of its 80,000 employees as it struggles with a budget crisis. The state says the furloughs will save an estimated $34 million during the fiscal year.

State governments, facing lower revenues but stymied by the long process required to cut public sector jobs, are using furloughs as a quick way to trim payrolls. Private-sector businesses -- from automakers to small businesses -- are shutting down factories and offices as sales drop.

The temporary layoffs are "kind of employment purgatory, but it's better than the alternative," said Carl Van Horn, a professor of public policy at Rutgers University. They're a typical response to decreasing demand in a recession, although this round is slightly worse than past bad recessions, Van Horn said.

Of 10.3 million unemployed workers in November, roughly 12 percent were unemployed because of temporary layoffs, according to data from the Bureau of Labor Statistics. The last time this many workers fell into the category was February 1991, when 1.4 million workers were unemployed because of temporary layoffs. As a proportion of the total work force, workers on temporary layoff are roughly 1 percent, nearly the same now as 17 years ago.

The numbers, based on a Census Bureau survey of households, likely understate temporary layoffs....

Sat, 3 Jan 09
Chip Stocks Dive in 2008 as Demand, Prices Slide
http://www.newsfactor.com/story.xhtml?story_id=63811
The U.S. semiconductor industry, notoriously volatile even without the shock of a global economic downturn, was badly hurt in 2008 as prices for memory chips continued their dizzyingly rapid fall and demand for PC microprocessors dropped off amid weaker demand.

As such, shares of chip makers and companies serving the sector suffered during the year. The Philadelphia Semiconductor Sector index, which is comprised of chip companies as well as manufacturers of chip-making equipment, fell by nearly half in 2008. The index closed Tuesday's trading session at 211.26, compared with 408.04 at the end of 2007.

"Things have been horrible all year and will continue to be horrible for the time being," said Avi Cohen, managing partner with Avian Securities.

Even Intel Corp., which has performed relatively well this year, was punished in the stock market. The world's biggest microprocessor maker recorded $5.1 billion in net income in the first nine months of 2008, up 7.5 percent from the previous year as it benefited from an improved manufacturing process and market-share gains.

But the tech bellwether's shares lost about 45 percent of their value in 2008. A steep decline began in September as the financial sector crisis intensified. Additionally, a $1 billion reduction to Intel's fourth-quarter revenue forecast in November did little to inspire investor confidence.

Shares of Intel's main rival Advanced Micro Devices Inc. fared even worse, despite a turnaround plan that includes spinning off its factories into a joint venture and shedding 2,100 jobs. Furthermore, in July the company's embattled chief executive Hector Ruiz stepped aside and was replaced by President and Chief Operating Officer Dirk Meyer.

AMD's stock is trading at a multi-decade low of around $2 per share, down about 70 percent for the year.

Job cuts were spread throughout the sector. KLA-Tencor Corp. and Applied Materials Inc., two of the world's biggest makers...

Sat, 3 Jan 09
Report: UK Database Could Be Privately Managed
http://www.newsfactor.com/story.xhtml?story_id=63810
A proposed British database intended to store details of every phone call, e-mail and Web site visit made in the U.K. could be managed by a private sector contractor under government plans, the Guardian newspaper reported Wednesday.

Such outsourcing would be accompanied by tougher legal safeguards to guarantee against leaks and accidental data losses, the newspaper said, citing a consultation paper.

However, involving the private sector in handling such sensitive data is bound to generate more trouble for the plan, particularly given a series of high-profile losses of computers, disks and hard drives storing such material in recent years. The steady stream of data blunders has kept the spotlight on the way the government handles -- or mishandles -- its citizens' information.

Britain's Home Office will consult the public and communications industry on the proposals starting next month, but declined to say on Wednesday whether an option for a private company to manage the database will be included in documents circulated for discussion.

The government previously dropped plans to include the proposal in the annual legislative program announced earlier this month, saying more debate was necessary.

Civil liberties groups have expressed concern about the database, which would create an unprecedented store of information on each individual's private communications in hopes of tracking the movements of criminals or terrorists.

Ken Macdonald, who stepped down as Britain's director of public prosecutions in October, said the plans to create a database are the stuff of a "paranoid fantasy."

"No other country is considering such a drastic step," Macdonald was quoted by the Guardian as saying.

Such a database would provide "a complete readout of every citizen's life in the most intimate and demeaning detail."

"The notion of total security is a paranoid fantasy which would destroy everything that makes living worthwhile," he was quoted as saying. "We must avoid surrendering our freedom."

Intelligence...

Sat, 3 Jan 09
Cisco Poised for Push into Home Electronics
http://www.newsfactor.com/story.xhtml?story_id=63781
Cisco Systems, the dominant provider of the digital pipes that run the Internet, is making a big play in digital entertainment. The company says it plans to introduce a new line of products in January, including a digital stereo system that is meant to move music wirelessly around a house.

That is the first small move in a long-term strategy to take on Apple, Sony and the other giants of consumer electronics. Cisco is working on other gadgets that will let people watch Internet video on their televisions more easily. And its biggest bet is that people will want to use a version of its corporate videoconferencing system, called Telepresence, to chat with their friends over their high-definition televisions.

The company has been talking about reaching out to consumers for years. At the Consumer Electronics Show in Las Vegas two years ago, John Chambers, the Cisco chief executive, laid out a strategy for building networks for entertainment in the home. At the show last year, Cisco promised new technology that would help media companies publish more video that could be watched on these home networks.

But after delays, changes in plans and the assignment of a new executive to oversee all this, Cisco now says the first of its products will hit the shelves, and the video sites will be on the Web, next month.

While Cisco is a newcomer to the consumer electronics business, the company says that after years of promises by the industry, consumer electronics is only now taking advantage of broadband Internet connections and home networks.

"This holiday the vast majority of consumer electronics purchases will be connected," said Ned Hooper, a Cisco senior vice president, during an interview before Christmas. Hooper was put in charge of the consumer electronics push a year ago. Many music players, digital cameras, game...

Sat, 3 Jan 09
Reinventing Yourself After a Layoff
http://www.newsfactor.com/story.xhtml?story_id=63764
After being laid off for the third time, Joyce Mueller decided shed had enough.

As a United Airlines customer service and sales rep for 21 years, Mueller, of Schaumburg, survived 9/11 and the company's bankruptcy. But when her job was outsourced to the Philippines, she vowed that was the end of being bounced around by an up-and-down industry.

"I can't keep going back and getting laid off again," she said. "Its too hard to go forward with your life."

Looking to change careers, Mueller went to Harper Community Colleges Career Center in Schaumburg, which provides job-hunting help not just for students, but for anyone in the schools service area.

Like Mueller, more than 10 million Americans were unemployed this past year -- about 2 million more than the year before. More than half a million lost their jobs in November alone, making it the worst month in 34 years. Industries like housing construction, auto manufacturing and finance are contracting drastically.

Increasingly, career counselors say, workers in declining fields have to reconsider what they want to do with their lives.

While losing a job can be devastating, some local job seekers say finding a new career can be an opportunity to reinvent oneself.

The key to remaking yourself for the job market, experts say, is to assess your skills and interests, find a growing field that matches them best, then mold and market your skills to fit the needs of that industry.

Its happening all over. One local financial planner hopes to help people by going into health care. A former information technology manager is giving back by becoming an academic counselor for kids interested in IT.

Starting over can simply be a matter of retooling and emphasizing skills you have, or it may require new skills. The transformation might be quick or take years.

But consultants and job seekers emphasize...

Fri, 2 Jan 09
How To Make Teleworking Work
http://www.newsfactor.com/story.xhtml?story_id=63788
Teleworking, broadly defined, is the ability to work from a home or remote location for all or part of the work week. Companies have been implementing large-scale teleworking programs for close to a decade, following a trend that had its root in contact centers.

Use of home-based agents became a popular business strategy because of the clear, measurable results proven out by rigorous performance metrics, and the reduction in employee churn typical of many contact center operations. In recent years, improvements in technologies have led to a wider adoption of teleworking as an accepted work situation. Technology advances, such as high-speed Internet, IP telephony, e-mail, instant messaging, Web conferencing and videoconferencing, can streamline communications and collaboration among remote workers, enabling them to function as if they are in the same office.

The rise in teleworker programs makes a strong case for enterprises to consider the use of unified communications (UC) and may be the driving force leading to much wider deployments. The basic tenant of UC -- communication and collaboration from anywhere, anytime -- is demonstrated in the teleworker and mobile worker situations.

The federal government, as well as many state and local governments, are instituting telework programs. With some organizations considering four-day workweeks as an answer to rising energy costs, teleworking offers the benefits of a compressed workweek along with increased productivity, but without 10-hour days or the loss of service to customers for a full business day.

Organizations need clear, measurable goals before undertaking a teleworker program. Increasing employee flexibility and retention, cost savings, environmental concerns, and government incentives or mandates, for example, are among the top concerns of companies exploring teleworking programs.

Telecommuting programs allow organizations to hire new employees in remote geographies to take advantage of scarce skill sets or lower-cost labor. Some companies have used telecommuting to support their...

Fri, 2 Jan 09
Where Will Technology Take Business in the Future?
http://www.newsfactor.com/story.xhtml?story_id=63754
It's the end [of 2008 and the start of 2009], and that's a good time to take stock of what's been happening in business technology, and think about where trends might be going.

In one sense, the big players seem to hang on and get bigger. Apple hardly tak