Scientists make computer read minds

Friday, May 30, 2008

A computer has been trained to "read" people's minds by looking at scans of their brains as they thought about specific words, say researchers.
They hope their study, published in the journal Science, might lead to better understanding of how and where the brain stores information.
This might lead to better treatments for language disorders and learning disabilities, said Tom Mitchell of the Machine Learning Department at Carnegie Mellon University in Pittsburgh, who helped lead the study.
"The question we are trying to get at is one people have been thinking about for centuries, which is: How does the brain organise knowledge?" Mitchell said in a telephone interview.
"It is only in the last 10 or 15 years that we have this way that we can study this question."
Mitchell's team used functional magnetic resonance imaging, a type of brain scan that can see real-time brain activity.
They calibrated the computer by having nine student volunteers think of 58 different words, while imaging their brain activity.

"We gave instructions to people where we would tell them, 'We are going to show you words and we would like you, when you see this word, to think about its properties,'" Mitchell said.
They imaged each of the nine people thinking about the 58 different words, to create a kind of "average" image of a word.
"If I show you the brain images for two words, the main thing you notice is that they look pretty much alike. If you look at them for a while you might see subtle differences," Mitchell said.
"We have the program calculate the mean brain activity over all of the words that somebody has looked at. That gives us the average when somebody thinks about a word, and then we subtract that average out from all those images," Mitchell added.
Then the test came.
"After we train on the other 58 words, we can say 'Here are two new words you have not seen, celery and airplane.'" The computer was asked to choose which brain image corresponded with which word.
The computer passed the test, predicting when a brain image was taken when a person thought about the word "celery" and when the assigned word was "airplane."
The next step is to study brain activity for phrases.
"If I say 'rabbit' or 'fast rabbit' or 'cuddly rabbit', those are very different ideas," Mitchell said.
"I want to basically use that as a kind of scaffolding for studying language processing in the brain."
Mitchell was surprised at how similar brain activity was among the nine volunteers, although the work was painstaking. For an MRI to work well, the patient must sit or lie very still for several minutes.
"It can be hard to focus," Mitchell said. "Somewhere in the middle of that their stomach growls. And all of sudden they think, 'I'm hungry - oops.' It's not a controllable experiment."

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Microsoft to add multitouch interface to Windows 7

Wednesday, May 28, 2008

In an interesting but perhaps unsurprising move, Microsoft plans to add multitouch interface to Windows 7 . The interface will be shown in just a few minutes as part of Steve Ballmer and Bill Gates' keynote at the D6 event here.
Update: Ballmer says it will come in late 2009. Corporate VP Julie Larson-Green demonstrated the multitouch technology, painting with several fingers at the same time to show how it can process not just touch, but multiple simultaneous input.
"It's much faster to do certain tasks than using a mouse," Larson-Green said. She also showed rotating photos by pinching and rotating, much like Microsoft's surface or Apple's iPhone.
Microsoft had previously hinted that the touch gestures would find their way into Windows. In an interesting twist though, the new technology will work with existing touch screens, Microsoft said. They showed it running on an existing Dell laptop.
A Microsoft blog with a demo can be found here and I've added in Microsoft's video as well at the end of the post.
Analysis and context: I took three major things away from the multitouch demo.
1. This is going to be ubiquitous. And by this I don't just mean on every Windows machine. I also expect Apple to have a similar feature on its computers, and quite possibly ahead of Windows 7 final ship date.
2. We're going to see touch on a lot more machines ahead of Windows 7. I expect this will help convince PC makers to include touch screens even in Vista machines so they can be "7-proof." Touch can come in many forms. We've already seen that the laptop's touch pad can prove to be a cost-effective spot for gesture sensitive touch, and I think we will see other interesting gesture recognition approaches beyond just making the full screen touch sensitive.
3. User interfaces are a key selling point in Microsoft's No. 1 longterm Windows goal--making the OS matter. Windows is not just under attack from Apple. It's also under attack from forces that threaten to make the OS less relevant, whether it's browser-based applications or (pardon the phrase, boss) Web operating systems.
Two such efforts are going to be on display here at D: G.ho.st (which presents Wednesday) and Glide, which presents on Thursday.
I spoke with CEO Donald Leka, who talked about how Glide allows documents to be shared across devices, such as a Mac user trying to share a QuickTime file with a mobile phone user that happens to have RealPlayer or Windows Media on their device. The company's support for the iPhone, in particular, has been a boon, Leka said.
"The iPhone is probably the best thing that ever happened," he said.
As is often the case, things were a little less compelling when it comes to the business model and the drivers that will push someone to one of these efforts over another. Leka said the company can make money off commerce and by selling premium subscriptions on top of the 5GB of free storage Glide provides.

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Forget Google, "Naver" it

In one of the world's most wired societies, South Koreans seldom "Google" a topic.
Instead they "Naver" it, thanks to a real-time question-and-answer system involving tens of thousands of daily responses from the general public.
The world's top search engine accounts for less than three percent of all internet searches here, according to a research firm, compared to 76 percent for Naver.com.
NHN (Next Human Network), the company that runs Naver, attributes its success to a grassroots product tailored to Korean society.
"NHN shows not only web-based texts but also various other types of content about news, blogs, online communities, books, shopping, dictionaries and even weather — all one by one," NHN spokesperson Yun Won-Sik said at his office in Seongnam, a city south of Seoul.
"NHN has been blended well into the Korean culture where people like seeing various types of content in a neat manner at one single viewing."
The company says Naver — named after "navigator" — averages 12 million visitors a day, with 130 million queries keyed every 24 hours.
Q and A's
Its most successful feature is the question-and-answer database service, Yun told AFP.
Introduced in 2002, the "Jishik (knowledge) iN" platform has become a huge hit. "It was a breakthrough, through which Naver has since maintained its lead in the industry," Yun said.
"Like Wikipedia, it is a participatory service where ordinary people can post what they know on the web, ask questions and answer them online."
Questions range from trivia, such as what causes bad breath or which is the best MP3-player, to weighty enquiries about the impact of the subprime mortgage crisis or North Korea's nuclear development on the economy.
Each question promptly gets answers, sometimes from jokers but also from people with expert knowledge.
Each day Naver users ask around 50 000 questions through the interactive service and receive about 120 000 answers ranging from short sentences to mid-sized essays and lengthy theses.
User-generated data now totals around 92 million queries — an exclusive treasure source for Naver.
When users "Naver" a topic, the search engine brings up items from its exclusive "Jishik iN" database as well as widely-shared news and other sites.
Honour intellectuals
Kim Seung-Il (41) is typical of the people happy to share his grassroots expertise. The director of Seoul-based building cleaning company Goam has been known as "Dr Cleaning" among Naver users since 2003.
At his apartment in Paju, a city north of Seoul, Kim was busy posting answers to questions about cleaning techniques. At one time, he said, he was posting 600 to 700 answers a week.
"One of the trivial but frequent questions raised by housewives is how to remove stains on bathroom tiles. I have been in a cleaning job for 20 years and have been able to share the knowledge earned from my work with others."
Kim's reward is the many messages of thanks he receives. But he also admits having become "addicted to fun" which Naver has created to lure users.
Naver, which is linked to leading internet gaming site Hangame, adopts an interactive grading system for online answers. Users can grade these according to their usefulness. An "honour intellectual" title is regularly awarded to the best answers.
"It was fun to see my answers going all the way up to the highest rank... that's how I started it," Kim said.
"I also felt so great when some people sent me individual online messages or emails to express appreciation for my answers, or even ask me one-on-one questions."
Naver's real-time question-and-answer service later spread to almost all other rival portals.
Market leader
Market researcher KoreanClick reported that in April Naver handled 76.2 percent of all internet searches in South Korea, while other local portals Daum.net and Empas.com had 11.6 and 4.3 percent each.
Google's English (Google.com) and Korean (Google.co.kr) accounted for a combined 2.7 percent last month, it said.
NHN, which employs 2300 people, is South Korea's most profitable internet firm. It posted 280 billion won ($276-million) in net profit on sales of 920 billion won in 2007.
In the first quarter to March NHN's revenue jumped 48 percent year-on-year to 295.3 billion, with net profit rising 42 percent to 88.4 billion won.
Naver, which sells advertisements and commercial web links, accounts for more than half of NHN's total revenue.

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Intel delays Centrino 2 launch over chipset, antenna issues

Intel will delay the launch of its upcoming Centrino 2 platform for laptop computers to resolve issues related to the chipset and the antenna used with the wireless chipset.
Centrino 2, also called Montevina, is the next version of Intel's popular Centrino platform for laptops and was previously slated for a June launch. Computer makers are now expected to begin shipping Centrino 2 systems to retail shops in July, with production reaching high volumes during the first week of August, said Elvin Ong, an Intel spokesman in Singapore.
The Centrino 2 platform includes new Core 2 Duo and Core 2 Extreme Mobile processors, as well as an updated chipset with integrated graphics. On the wireless side, Centrino 2 will offer support for Wi-Fi, and WiMax is being offered as an option.
"We are taking the extra days to address two issues that require us to re-screen our chipsets with integrated graphics, and attend to some terms-and-conditions mistakes while filing and testing our wireless antennas," Ong said, adding that Intel expects Centrino 2 laptops to be available in time for the crucial back-to-school selling season.
Ong declined to detail the chipset issues that require Intel to re-screen these products, but said the move was necessary to insure the quality of the product. "We are not going to ship a sub-par product into the market," he said.
There is no problem with the processors used in Centrino 2, Ong said, calling these chips "healthy."

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Microsoft Talks Up Mobile Advertising Solutions at advance08

At Microsoft's online advertising leadership forum, advance08, Brian McAndrews, senior vice president of the Advertiser & Publisher Solutions Group, announced the availability of display advertising across two Windows Live for mobile services, the launch of new markets for Windows Live for mobile services, and upcoming advertising plans for its Live Search Mobile offering.The company said advertisers can now extend their campaigns to social media through Windows Live for mobile in France, Spain, the U.K. and the U.S. by creating banner ads that will be visible across Windows Live Messenger and Windows Live Hotmail. This builds upon Microsoft's initial launch of mobile advertising for MSN Mobile in France, Spain, the U.K. and the U.S. where mobile ads are available alongside premium MSN Mobile content. Advertising on Windows Live for mobile is already available in Spain, and later this month will be available in Germany, Italy and the Netherlands, further extending its availability for a dvertisers. All ads placed on these two services will adhere to Mobile Marketing Association (MMA) guidelines."In today's connected world, the mobile device is emerging as a prime opportunity for advertisers to reach their audience," said Brian Arbogast, corporate vice president of Mobile Services at Microsoft. "This announcement is evidence of our commitment to providing advertisers with further opportunities to connect and engage consumers throughout their 'digital day' -- at home, at work and on the go across multiple platforms, devices and geographic regions.""FedEx is committed to servicing our customers across mobile devices and creating awareness of our mobile applications so we can service them anytime, anywhere," said Steve Pacheco, director of advertising at FedEx. "As we profile our innovative application, mobile.fedex.com, working with emerging media platforms allows us to communicate broadly with our customer base."Microsoft also announced plans to further expand its mobile offerings for advertisers to now include mobile search advertisements on Live Search Mobile. For the first time, the company noted, invited advertisers can create keyword campaigns through Microsoft adCenter that target customers on the go while they are using Live Search Mobile. This will be the first time that Microsoft has enabled advertisers to monetize its mobile search service. The beta is currently available in the U.S. and will be expanded in the second half of 2008.Microsoft also announced that it has more than doubled its market availability for Windows Live for mobile from 22 markets to 49. Windows Live for mobile provides the company's 430 million Windows Live customers with mobile access to Windows Live Hotmail, Windows Live Messenger and Windows Live Spaces from almost all Web-enabled mobile handsets.The announcement further demonstrates the momentum Microsoft is making in the mobile advertising market since its acquisition of ScreenTonic SA in May 2007.

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The loss of an IT services pioneer

CSC has been a dominant part of the Australian IT services landscape for the past four decades years. Sadly, the man who first took control of the business will no longer be able to see it enter its fifth decade.
Ian Esplin, who became the first CEO of Computer Sciences of Australia, as it was called at the time, passed away this month, aged 94.
He is survived by a son, daughter, grandchildren and great-grandchildren.
CSA had an interesting beginning. It was started by funds management and superannuation company AMP, who owned a 51% share and US-based Computer Science Corporation which held a 49% share.
AMP had decided in the late 60s the future of its business would be a world of online systems. What it got to discover in building those systems was that they were more complex than what people believed in at that point in time. So it looked for a technology partner to get into this brave new world. Computer Science Corporation had invested in computer time sharing bureaus and they were trying to share that across the globe. Both parties saw natural synergies and CSA was formed.
Esplin was selected to lead the company in 1970 and did so for several years before being replaced by an American expat.
Well before his involvement in IT, Esplin was a WWII fighter pilot for the RAF. He also worked for a brief period at Qantas after the war. In the 1950s he returned to England to be a squadron leader in the RAF. He returned to Australia in the 1960s and worked for an American manufacturing company before getting the job with CSA.
AMP continued to have involvement - it stake in the company fluctuated over the years -- with CSC until will sold it to the Americans in 1993.

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Microsoft going 'independent' after failed Yahoo bid

Tuesday, May 27, 2008

Microsoft Chairman Bill Gates said Wednesday the company isn't pursuing other deals following the withdrawal of its $47.5 billion takeover bid for Yahoo.

He said in Tokyo that the company put "a lot of effort" in the talks with Yahoo and has decided the two should pursue "independent paths."
Over the weekend, Microsoft withdrew its three-month-old unsolicited bid for Yahoo Inc. after seeing the impasse with Yahoo's board over a mutually acceptable sales price.
"Now at this point Microsoft is focused on its independent strategy," Gates told reporters at a news conference in Tokyo.
Those comments seemed to set a different tone than on Tuesday in South Korea, where he said the company wasn't ruling out alternative partnerships after the failure to buy Yahoo.
Microsoft Chief Executive Steve Ballmer had orally offered to pay $33 per share, or $47.5 billion, for Yahoo, up from an initial bid valued at $44.6 billion, or $31 per share. At the time the negotiations collapsed, the value of Microsoft's original offer had fallen to $42.3 billion, or $29.40 per share, because half the deal was supposed to be financed with Microsoft's declining stock.
Yahoo's board wanted $37 per share -- a price that the company's stock hasn't reached in more than two years.
Microsoft trails Google in the online search and advertising markets, and the bid for Yahoo was an attempt at turning that around.
But Gates said that Microsoft was determined to make "advances" in its own search offering and meetings were in the works in Seattle, Washington, to hammer out more specific plans.
"We will make the advances that give people a great choice there," he said.
Microsoft's intense pursuit of Yahoo was widely seen as an acknowledgment of weaknesses in Microsoft's solo Web search and advertising strategy, and the software maker now needs to prove it can innovate without Yahoo as a partner.
Gates makes periodic trips to Asia, and he was in Japan two years ago. He said he met with business partners in Japan, which he sees as an important market. Talks covered digital broadcast software for Windows-based personal computers and giving free downloads of Microsoft software to Japanese students.
Possible partners for Microsoft in the future might include large Internet companies such as Time Warner Inc.'s AOL and News Corp.'s MySpace and promising startups such as Facebook Inc. and LinkedIn Corp. (CNN, like AOL, is a division of Time Warner Inc.)
Microsoft already owns a 1.6 percent stake in Facebook, the second-largest social network behind MySpace.

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What is Disruptive technology???

A disruptive technology or disruptive innovation is a term describing a technological innovation, product, or service that uses a "disruptive" strategy, rather than a "revolutionary" or "sustaining" strategy, to overturn the existing dominant technologies or status quo products in a market. Disruptive innovations can be broadly classified into low-end and new-market disruptive innovations. A new-market disruptive innovation is often aimed at non-consumption, whereas a lower-end disruptive innovation is aimed at mainstream customers who were ignored by established companies. It has been systematically shown to the research community that most disruptive innovations are in a minority compared to revolutionary innovations which introduce an innovation of higher performance to the market. Examples of true disruptive innovations, ie. innovations that are lower in performance and lower cost, succeeding are rare. Occasionally, a disruptive technology comes to dominate an existing market by either filling a role in a new market that the older technology could not fill (as cheaper, lower capacity but smaller-sized flash memory is doing for personal data storage in the 2000s) or by successively moving up-market through performance improvements until finally displacing the market incumbents (as digital photography has begun to replace film photography).
By contrast, a "revolutionary technology" introduces products with highly improved new features into the market. This is the innovation that most often replaces the incumbent. In addition, a "sustaining technology or innovation" improves product performance of established products. Sustaining technologies are often incremental; however, they can also be radical or discontinuous.


The theory
Christensen distinguishes between "low-end disruption" which targets customers who do not need the full performance valued by customers at the high-end of the market and "new-market disruption" which targets customers who have needs that were previously unserved by existing incumbents.
"Low-end disruption" occurs when the rate at which products improve exceeds the rate at which customers can adopt the new performance. Therefore, at some point the performance of the product overshoots the needs of certain customer segments. At this point, a disruptive technology may enter the market and provide a product which has lower performance than the incumbent but which exceeds the requirements of certain segments, thereby gaining a foothold in the market.
In low-end disruption, the disruptor is focused initially on serving the least profitable customer, who is happy with a good enough product. This type of customer is not willing to pay premium for enhancements in product functionality. Once the disruptor has gained foot hold in this customer segment, it seeks to improve its profit margin. To get higher profit margins, the disruptor needs to enter the segment where the customer is willing to pay a little more for higher quality. To ensure this quality in its product, the disruptor needs to innovate. The incumbent will not do much to retain its share in a not so profitable segment, and will move up-market and focus on its more attractive customers. After a number of such encounters, the incumbent is squeezed into smaller markets than it was previously serving. And then finally the disruptive technology meets the demands of the most profitable segment and drives the established company out of the market.
"New market disruption" occurs when a product fits a new or emerging market segment that is not being served by existing incumbents in the industry. The Linux operating system (OS) when introduced was inferior in performance to other server operating systems like Unix and Windows NT. But the Linux OS is inexpensive compared to other server operating systems. After years of improvements it threatens to displace the leading commercial UNIX distributions.

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Cisco gets into open source in a big way

CIO.com's James Turner has reported on a big, new development from Cisco Systems: the announcement of Etch, a "messaging protocol intended to allow developers to integrate client/server applications without the overhead of traditional protocols such as SOAP."
The biggest part of the release, however, is that it will be open source.
Like Facebook's Thrift messaging protocol, Cisco's open sourcing of Etch probably has less to do with any corporate love for open source than with a realization that the most viable way to take on an incumbent in an established software market is with open source. Open source enables a company to potentially disarm competing technologies through a bottom-up infiltration of the market.
Proprietary software is a way to guard one's position. Open source is a way to create a new position. Cisco's Etch is just one more reminder that many, if not most, new entrants to a crowded market will be open source. Whether they remain as such, however, is an entirely different question.

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Samsung develops 256GB solid state drive

Samsung has developed one of the largest-capacity and highest-speed solid state drives to date.

Samsung announced the development of a 2.5-inch, 256GB solid state drive (SSD) at the fifth annual Samsung Mobile Solution Forum in Taipei, Taiwan.
Typical solid state drives shipping in notebook PCs today have a storage capacity of 64GB.
With a sequential read speed of 200 megabytes per second and sequential write speed of 160MBps, Samsung is claiming some of the fastest SSD data transfer rates to date.
Like upcoming Intel SSDs, Samsung's drive will use multi-level cell (MLC) technology and a high-speed Serial ATA (SATA) II interface. Later this year, Intel is planning to announce high-capacity SSDs, which select PC vendors are expected to adopt in forthcoming notebook PCs based on the Centrino 2 "Montevina" mobile processor.
Samsung is slated to begin commercial production of the SSD by year's end, with customer samples available in September. A 1.8-inch version of the 256GB SSD is expected to be available in the fourth quarter, ZDNet Korea reported.
SSDs have no moving parts, which means they avoid both the risk of mechanical failure and the mechanical delays of hard disk drives.

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Infineon CEO to step down

The CEO of German chipmaker Infineon Technologies will step down next week, the company said Monday.
Wolfgang Ziebart, who has run the company since 2004, is leaving on June 1 "due to different opinions on the future strategic orientation of the company," Infineon said in a statement.
Peter Bauer, an executive vice president and head of Infineon's automotive, industrial, and multiple-market business group, will assume Ziebart's position as spokesman of the company's management board.

Bauer, who was CEO of Siemens Microelectronics in the 1990s, joined Infineon when chip operations were spun off from Siemens in 1999.
Infineon, which has been losing money recently, also announced a program to try to improve margins.
The company, which is based in Neubiberg, Germany, has about 43,000 employees and is one of Europe's biggest chipmakers.

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Questions and comments about Firefox 3, IE 8, the future of Web browsers, cloud computing, and how it all comes together

So it's always amusing to me when the mainstream press tries to cover tech products, but I was particularly interested in this one since I'm in the middle of writing my own Firefox 3 review. I think that terms like "innovative" are thrown around too casually these days, and while I realize the competitive advantages inherent in using terms like that, let's be honest here: Firefox 3 is excellent, but it's not innovative at all, it's just an evolution of what browsers have always been. And that's fine, I guess. One thing this guy does get right, however, is that the browser is increasingly important because it's the gateway through which we do and will in the future experience cloud computing:

The browser, that porthole onto the broad horizon of the Web, is about to get some fancy new window dressing ... With tasks like e-mail and word processing now migrating from the PC to the Internet, analysts and industry players think the browser will soon become even more valuable and strategically important.
"The typical [Web] browser doesn't look all that different than it did 10 years ago," said Larry Cheng, a partner at Fidelity Ventures, one of the firms that invested in Flock, a browser start-up. "That is an unsustainable trend that is the launching point for the second browser war, which will not be won by monopolistic muscle but by innovation."

Exactly. Early versions of Firefox were, of course, somewhat innovative, popularizing features that IE later copied, like tabbed browsing and pop-up blockers. But Firefox has been on a steady evolutionary, not innovative, trend since then. That's fine, but let's be honest about that. (Peruse this list of "top ten" new features in FF3 to see what I mean: It's chock full of evolutionary improvements, but there's no true innovation there.)

That notion [that "the only thing people will need on a computer is a browser"] has helped to rekindle the browser wars and has resulted in the latest wave of innovation. Firefox 3.0, for example, runs more than twice as fast as the previous version while using less memory, Mozilla says.
The browser is also smarter and maintains three months of a user’s browsing history to try to predict what site he or she may want to visit. Typing the word “football” into the browser, for example, quickly generates a list of all the sites visited with “football” in the name or description.

That's all evolutionary, not innovative. Newer versions of software applications should be more efficient than their less sophisticated predecessors. But this one is curious:


Firefox has named this new tool the “awesome bar” and says it could replace the need for people to maintain long and messy lists of bookmarks. It will also personalize the browser for an individual user.
“Sitting at somebody else’s computer and using their browser is going to become a very awkward experience,” said Mitchell Baker, chairwoman of the Mozilla Foundation.

Just so I understand this quote, Mitchell Baker, the chairwoman of Mozilla, is claiming that one of the major new features in Firefox 3... will make the browser less easy to use if multiple people use it?
BTW ... the "awesome" bar is not only a horrible name, I think it somewhat undermines the otherwise mature nature of this product.
Anyway. I would also point out that the few end-user-oriented features in IE 8 that we've been shown so far--Web Slices and Activities--are arguably far more innovative than anything in Firefox 3, because they dramatically change the behavior and functionality of the browser. Whether these features are successful, or useful, or necessary, well that remains to be seen.
OK.
Just so we're clear. I use Firefox 3 and will continue to do so. I recommend that you use Firefox 3 as well. But I think we're reaching the point where this traditional type of browser has pretty much run its course. I'm not sure, exactly, what the next step is, but I guess I'd categorize it as better integration with the Web-based services (i.e. cloud computing services) that we use now and will use in the future. Since Firefox (and IE and, to a much lesser extent, Safari and Opera) is the portal we use to access this functionality, these products should do two things:

1) Integrate more seamlessly with the underlying operating system in order to blur the line between the local operating environment and the Web services that are exposed by the application. Firefox 3 makes a reasonable step in this direction, and though I'm personally disappointed they didn't go as far as originally promised, it looks like they'll get there in FF4.

2)Integrate more seamlessly with the Web services that are exposed by the application. Create hooks to Gmail, Google Calendar, etc. so that these services can appear like native applications on the local PC (or at least provide a better infrastructure for these hooks). Mozilla, too, is working on this with the Prism project and of course offline technologies like Google Gears complete the picture.
Microsoft, however, is in a unique position here because they play in all three levels of the Software + Services ecosystem on the traditional PC. They make the OS (Windows), the browser (IE) and other local applications (Windows Mail, Windows Calendar, etc.), and the Web services (Hotmail, Windows Live Calendar, etc.) and can thus more seamlessly integrate all of this stuff together. Assuming they do it right. Which they haven't, yet. But they may get there. (Apple comes pretty close to this vision, too: They make the OS--Leopard--the browser--Safari--and the other local apps--iCat, Mail.app. But they come up short on the Web services side, and would have to partner with Google, Yahoo!, and similar companies to deliver anything as good as what Microsoft can do alone.
But of course, computing in the future will increasingly happen on not-traditional devices like the smart phone. Both Microsoft and Apple have OS-related mobility products that complete the picture in an anywhere/anytime access sense. This, curiously, is an area where Mozilla has lagged. And arguably, Mozilla's inability to come up with anything compelling in the mobile space--heck, even Opera is a major player in that market right now--means they might simply get locked out of what becomes the volume cloud computing platform of the future. This should be hugely troubling for Mozilla and its advocates. The window is closing.
I'll leave you with a related and somewhat disturbing thought:
I've been very critical of Microsoft's decision to bundle IE into Windows. They way they did it was wrong. When they did it was wrong: Back in the mid-1990's, IE was such an immature technology that letting it get its tendrils into Windows/NT was just a bad decision; it resulted in years of security vulnerabilities that have dogged hundreds of millions of Windows users.

But think about it. If you accept that the browser will become the portal to accessing the Web services of the future, doesn't it actually make sense from a marketing/usage/productisation standpoint to make the browser the core interface of both the OS (Windows) and the Web? If you're serious about making Windows the absolute best way to experience cloud computing, this is actually the right thing to do. Conceptually.

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Microsoft trashes Windows XP

It's like politics. You start out by focusing on your ideas, how you want to improve things, maybe change the world a bit. But as the campaign slogs on, or as the legislation stalls, or the opinion polls begin to dip, you lash out. First at the media - for their "unfair, biased coverage" - then at your opponent. Until finally your "talking points" become little more than a laundry list of the "other guy's" faults and why you think he/she is "unsuitable" for public office.
Such is the case with Microsoft's campaign to win the IT community over to Vista. What started out as a positive effort to promote Vista's many benefits - the "wow starts now" - has devolved into kind of character assassination of its predecessor, Windows XP. At least that's how I'm reading the new white paper being circulated by the folks from Redmond: A classic political hit piece, one designed to cut the "other guy" (XP) off at the knees.
It's also sign of desperation. Microsoft tried the above-board route with Vista. It failed. Now it's time to get down into the mud and really pummel the opponent. No more mister nice guy. It's time to dig up every dirty little flaw and parade them through the mire in the hope that the Vista fence-sitters will finally see just how desperately they need "change."
Unfortunately for Microsoft, the version of XP they're attacking - with the missing features and incomplete security model - is a bit of a straw man. By focusing exclusively on the bare OS (up until and including the Service Pack 3 bits), they effectively strip XP of the robust ecosystem of supporting tools and workarounds that has evolved during its 5 year reign as King of the Desktop. As a result, the product they cite in their white paper bares little resemblance to the OS that enterprises deploy today.
For example, the white paper runs through a laundry list of new Vista "features" that are "missing" from XP. However, the majority of these have been addressed already by third parties (e.g. configuration management, mage-based deployment). Others are more like "bolt-on" components than features of the core OS (e.g. Sync Center, Mobility Center). And, of course, there are the myriad XP security and management "holes," which seem daunting until you realize that virtually none of them apply to the locked-down, tightly-controlled, corporate firewall-protected world of an enterprise Windows XP desktop.
Microsoft knows it can't win if the battle is between Vista and Windows XP as it exists today in the real world. So instead of attacking XP fairly, it slips in a sucker punch in the hope that someone further up the corporate management chain (and thus sufficiently removed from the IT trenches to know any better) will buy into the whole smear campaign and start pushing for a Vista migration.
The IT community may eventually forgive Microsoft for trying to hoodwink customers into a forced XP-to-Vista migration. However, with Windows 7 just around the corner, and with desktop Linux looking more polished every quarter, the company would do well to pull a few of its punches before that same, forgiving IT "electorate" decides to sit out yet another OS "election cycle" - or worse still, starts exploring one of those "3rd party candidate" options.

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Nokia N78

The N73 was one of the more popular Nseries models because of its technical specifications and was priced affordably. Although it isn't such a clear-cut replacement, the upcoming N78 brings a host of upgrades including a higher-res 3.2-megapixel autofocus camera, Wi-Fi and Assisted-GPS with geotagging support.

Upside

Besides the features mentioned above, the quad-band N78 comes with HSDPA connectivity and a high-capacity 1,200mAh Lithium-ion battery. According to Nokia, the N78 is rated for up to 13 days on standby and slightly over 4 hours of talktime. There's a hot-swappable microSD expansion card slot on the left edge of the phone, a 3.5mm audio jack at the top, onboard FM radio and an integrated FM transmitter. To sum it up, the N78 is a very well-specced handset at a retail price of approximately US$551.

lthough it is hard to ignore the similarities in design, the N78 was never meant to compete with the N82, as the latter is an imaging-focused device. That said, the biggest appeal of the N78 isn't its design, but the software. The N78 runs on the S60 3rd Edition platform with Feature Pack 2 which brings a number of updates to the interface of the phone. We'll touch more on this in a full review, but suffice to say, we like the user-interface enhancements we've seen so far. When the N78 was first announced, Nokia Maps 2.0 was still in beta stage. Now Maps 2.0 is a full-fledged mapping application and will likely be preloaded on the handset when it becomes available. This will complement the phone's geotagging features, as well as online services such as the music store, Flickr uploads, video on YouTube and the upcoming Share on Ovi. If these services are well-integrated, it could result in a much better multimedia user experience.

Downside

While the N78 has an impressive list of features, we can't say the same for the hardware.
The layout of the number keys felt very cramped and our thumbs kept hitting each other when we were using both hands to type. Even though the buttons provided good tactile feedback, we were hesitant about the usability of the keypad. The NaviWheel is an interesting feature and works very well in applications where you don't need precise control, such as browsing photos. But there were times when we accidentally activated the sensor while pressing on the directional pad.
The good thing is, you can turn the NaviWheel off in the settings so you won't encounter such problems.

Outlook
On paper, there's a lot to like about the Nokia N78. When it was announced, Nokia estimated the retail price to be approximately US$551, which means the handset should hover around the S$500 price range with a two-year contract. With the kind of features it brings and a strong Nseries branding, the N78 seems well-positioned to replicate the success of the earlier N73. A full review will be coming soon once we get hold of a commercial test unit.

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Software will change the focus of TV, Microsoft exec says

Microsoft's little engine that could may be its TV group, a unit that has spent more than a decade trying to move the company's software from computers to televisions, set-top boxes and cable systems.
Microsoft TV hasn't crested the hill yet, but it's getting a boost as TVs become more like computers, content goes digital and broadband ties it all together.Last week the group released a tool kit for its "Mediaroom" TV software platform, and later this year its software will appear in Xbox 360s that British Telecom will offer as set-top boxes.
Driving the train is Enrique Rodriguez, a 20-year TV-industry veteran who previously led the set-top box and modem business at French electronics giant Thomson.
Rodriguez had just retired and moved to Texas in 2003, to be close to his native Mexico, when Robbie Bach asked him to develop entertainment features of the Xbox.
Since then, the TV products were consolidated into Bach's Entertainment and Devices division, and Rodriguez was chosen to lead the unit, producing Mediaroom, Media Center software for PCs and software for devices that extend home networks to TVs in the home.

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Arun Sarin To Step Down As Vodafone CEO; Colao To Be Replacement: Reports

Arun Sarin, who defined Vodafone (NYSE: VOD) as the big global telecom conglomerate in his five years as CEO, is going to step down in July and will be replaced by Vittorio Colao, who is presently Sarin’s number two and has responsibility for the company’s European operations, reports Telegraph. The exact timing of Sarin’s departure, along with record headline full-year profits of about $25.8 billion (£13 billion) will be announced on Tuesday, the story said.
The timing of his departure comes as a surprise, if only because he was almost ousted two years ago in a board battle, but has since managed to steady the ship, with his focus on building Vodafone’s presence in emerging markets, including India. Sarin (pictured here at Vodafone’s earnings gathering for investors this morning) is expected to move into private equity world.
Times UK: As well as success in emerging markets, Sarin has also seen revenues rise thanks to data. Last year revenues from this area—the downloading of music clips, emailing and so on—surged nearly 50 per cent in the first half to $1.9 billion (£1 billion). Data revenues now account for 7.3 percent of the group’s total Western European revenues.
Update: In Vodafone’s Tuesday-morning earnings meeting, Sarin said: “I’ve done what I came here to do. The time is right and the time is now.” He said he looked forward to seeing the gathered analysts again “in the next couple of years” as his tenure comes to an end, suggesting it may be a slow step-down.

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How do you know your migration worked?

Not only do migrations give many organisations the heebie-jeebies but, even after they've completed them, lots of companies are scared to death at the idea of turning their old system off, so they keep the new and old systems running in parallel for months or even years. In this article I want to discuss a tool called TRUcompare from Valiance Partners, which provides a test and validation environment that can reassure users, and regulatory bodies, that migration has been completed satisfactorily. Note that TRUcompare is not used within the migration process per se, only for testing its success.
First a word about Valiance Partners: this was originally established as a specialist migration consultancy and it has implemented over 200 migrations for or alongside its clients. It built TRUcompare precisely so that it could prove the success (or otherwise) of its migrations, particularly for firms subject to auditing by regulatory bodies. However, the company is now in the process of spinning out any revenues not directly associated with TRUcompare so that Valiance becomes a pure product company. Currently the company only has offices in the United States although it has customers in other regions.
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Before I go on I should explain why I have referred to regulatory bodies. This is not something that normally crops up when dealing with pure data migrations. However, if the migration purely or partly involves content (as opposed to data) then compliance issues occur frequently when bodies such as the FDA (Food and Drug Administration) and SEC (Securities and Exchange Commission) have an interest in ensuring that migration has been correctly achieved.
TRUcompare works with both data and content and you start by profiling these, then defining the transformations that will be required (from which a specification is generated) and then, once migration is complete, the software compares all the data and content in the new system with the original data, taking into account the transformations that have occurred during the migration process. Notice that I said that it compares "all the data and content": TRUcompare does an exhaustive test rather than relying on sampling that can be unrepresentative, thus eliminating the need for QA teams to do manual sampling.
Now, there are a couple of issues here. The first is that anybody from the data management world will question the duplication of effort in profiling and transforming data compared to using data quality and ETL (extract, transform and load) tools. However, nobody from the content management space would raise such issues because these sorts of tools simply do not exist in that arena. Secondly, profiling is an automated process so it isn't necessarily onerous to do this twice (and, in any case, in TRUcompare it is not as detailed: it is not interested, for example, in discovering redundant columns). And, thirdly, it is arguable that for testing and validation purposes you actually should have a separate system for quality assurance and compliance reasons, otherwise you may get self-perpetuating errors.

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Is Yahoo Gouging For Domain Registrations?

A thread over at WebmasterWorld has reported that Yahoo will be increasing its charges for domain registration as of July 1, 2008 to $34.95. Now I have not heard that the major domain registries have increased prices so is this another way Yahoo thinks it can help increase revenue?
Most companies charge about a third of the new price so it looks like Yahoo will be losing a lot of that business. Guess the ones left will pay extra and Yahoo can cut back on staff.
This is not a smart move given all that is happening right now. Almost looks like they don't want to do it any more and figure to just boost the prices to a level where everyone leaves.
The price seems to include a starter hosting package. Curious would this have a spill over effect on visitor counts to Yahoo? Does it force sites to include Yahoo links or advertising?
I know gas prices are increasing a lot of goods and services but there is no gas needed to do this service.
Yahoo may want to reconsider this move. Sounds like desperate measures.

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Analysts: Microsoft likely eyeing Yahoo search assets

Tuesday, May 20, 2008

Although Microsoft provided no details Sunday about what deal it might cut with Yahoo, it seems highly likely that search advertising would be a major piece.
Search advertising continues to be the largest segment of online advertising and is the fuel that has propelled Google's revenue and profits to levels that have made Microsoft green with envy. "There's got to be some search component to the deal," said industry analyst Greg Sterling of Sterling Market Intelligence.
What shape the tie-up might take is anyone's guess. It could be some sort of joint venture in which the companies pool assets and create a larger ad network, Sterling said. Or it could be an agreement for Yahoo to outsource part of its search advertising business to Microsoft, along the lines of what Yahoo has reportedly been negotiating for weeks with Google, he said.
What's clear is that since Microsoft withdrew its offer to buy Yahoo for US$33 per share on May 3, Yahoo's management and board have been bombarded with complaints from shareholders.
Last week, billionaire investor Carl Icahn turned up the heat even more when he put forth a slate of 10 candidates and announced his intention to launch a proxy fight to oust Yahoo's board at the company's shareholders meeting in July, and strike an acquisition deal with Microsoft.
"Yahoo is under pressure to show shareholders some deal, probably with Google but maybe not just with Google, to give them some assurance of value on the immediate term," he said.
Of course, it's not great news for Yahoo shareholders that Microsoft is now only interested in doing a limited, narrow deal with Yahoo, said Brian Bolan, research director at Jackson Securities.
To Bolan, it seems evident that Microsoft has rethought its plan to buy all of Yahoo. "The clear indication of this is that Microsoft has looked through this soup-to-nuts and it has realized there's only a couple of parts of Yahoo that they really want. They don't want to duplicate services and features much in the way Yahoo has done over the years within its own properties," Bolan said.
One thing Microsoft does want and need is better search technology and better search monetization, so it's likely that Microsoft is eyeing Yahoo's assets in this specific area. But whatever form the deal takes, it will not be worth anywhere near what Microsoft had been ready to pay to acquire Yahoo, he said.
Consequently, Bolan expects Yahoo's stock to take a significant hit on Monday, as disappointed investors react to Microsoft's statement that it's not currently interested in a full-blown acquisition. "That's going to take a lot of the M&A [merger and acquisition] premium out of the stock," Bolan said.
"The stock has been running up on the idea of a bunch of people buying shares to try to force this [Microsoft acquisition] deal, to try to make this happen," he added.
A limited deal with Microsoft means that Icahn will likely push ahead with his proxy fight, so that with control of the board, he can carve out an acquisition deal, which at that point will likely be for somewhere at or a bit above the mid-$20 per share range, Bolan said.

And if no acquisition deal materializes for Yahoo, its stock will likely fall apart, said Bolan, who currently has a "sell" recommendation and a $17 price target on the stock.
Microsoft announced its US$44.6 billion cash-and-stock bid for Yahoo on Feb. 1, but abandoned its three-month courtship on May 3, saying that Yahoo had rejected a revised offer for $33 per share, an increase of about $5 billion. Yahoo formally rejected Microsoft's original offer on Feb. 11, saying it undervalued the company.
Yahoo's stock closed at US$19.18 per share on the day before the initial Microsoft offer, which boosted it to almost $30. However, on Monday, May 5, the first day of trading after Microsoft's offer withdrawal, Yahoo's stock closed down 15 percent at $24.37, after dropping as low as $22.97 during the day.
Not surprisingly, various large Yahoo shareholders have expressed their displeasure with Yahoo's board and management for, in their view, not negotiating in good faith with Microsoft and causing the talks to collapse.
Yahoo co-founder and CEO Jerry Yang and other top Yahoo executives have since then tried to shift the blame to Microsoft, alleging that the US$33-per-share offer was never put in writing and that Microsoft unexpectedly walked away at a time when Yahoo was still open to negotiating.
At the same time, Yang has failed to seal a deal in which Yahoo would outsource part of its search advertising business to Google, a move that could give Yahoo a significant revenue boost. Those negotiations with Google were cited by Microsoft CEO Steve Ballmer as a major reason to withdraw the offer because, in Ballmer's view, outsourcing search ads to Google would weaken Yahoo's competitive position in online advertising.
After Microsoft withdrew its offer, its top officials have repeatedly said that the company is no longer interested in acquiring Yahoo, arguing that Microsoft can strengthen its Internet business via internal efforts. On Sunday, Microsoft reiterated that it "is not proposing to make a new bid to acquire all of Yahoo at this time." However, Microsoft did add that it "reserves the right to reconsider that alternative."

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What does the HP-EDS deal really mean?

Tuesday, May 13, 2008

HP Tuesday announced its plans to acquire EDS for $13.9 billion in a deal that would double HP's services business and revive EDS' position as a leader in global technology services. The acquisition will catapult HP's annual revenue for services from less than $20 billion to nearly $40 billion and position HP as the second largest services provider in the world. Here is a look at what is happening and why now.

What are the basics of the deal?
HP will purchase EDS at a price of $25 per share, or an enterprise value of approximately $13.9 billion. HP expects the deal to close in the second half of this calendar year, and the company reports the terms of the transaction have been unanimously approved by both HP and EDS' boards of directors. HP intends to establish a new business group to be branded EDS and located at EDS' Plano, Texas, headquarters. After the deal closes, EDS will continue to be led by EDS Chairman, President and CEO Ronald Rittenmeyer, who will report to HP CEO Mark Hurd. What does EDS bring to the table for HP?
"In a word -- big revenues," says Ben Pring, research vice president at Gartner.
EDS is the No. 2 vendor in IT services (behind IBM), reporting $22.7 billion in revenue for fiscal 2007, according to Pring, who says by acquiring EDS, HP will immediately more than double its revenue for services. HP reported its fiscal 2007 services revenue at $16.6 billion. While Big Blue brings in about $54 million in services revenue, the EDS acquisition will enable HP to quickly accelerate its position in the global technology services market. "IT services are a big and strategic part of the marketplace and they influence technology purchases downstream," Pring says. That means if IBM Global Technology Services is working with a client at the services level, there is more of a chance the customer will buy IBM technology. If HP can get its foot in the door with more services customers, hardware and software sales could follow.
"If HP had a bigger professional services umbrella and footprint, they would get greater access to a very strategic marketplace," Pring says.
What is the overlap between HP services and EDS offerings?
HP services today primarily focus around product support. EDS offers broader services that include data center management, network management and application outsourcing. The overlap could be minimal, Pring says, and enable HP to move beyond professional services designed to get its products up and running in customer IT shops to offering large-scale outsourcing services. "They don't have a huge overlap with the other business. There will be some stripping out of overlap and overhead to be sure, but HP will be getting a new set of services expertise to offer," Pring says.
Why do this deal now?
HP isn't shy about spending money on acquisitions; it purchased Mercury Interactive for $4.5 billion and some say the vendor overpaid for Opsware when it put down $1.6 billion for the automation software vendor. In the past decade, EDS has seen some hard times and perhaps the company didn't bounce back to its former glory quickly enough to compete with IBM.
"EDS had a rough ride earlier in the decade when everything slowed down," Pring says. The company in 2003 brought in Chairman and CEO Michael Jordan to "right the ship" and he helped the vendor mend contracts with the U.S. Navy. But Jordan in the last year has been passing duties onto Rittenmeyer, which hasn't reenergized the business as much as many had hoped. "EDS has been losing out in big deals to competitors in its peer group, IBM in particular, and the company's share price has been lagging for the past six months," Pring says. But since talk of this acquisition began to spread, industry watchers say the prospect of HP buying EDS will please many EDS stockholders.
"Stockholders are looking at this deal as a good exit strategy for EDS. There is a lot of excitement around this," Pring says.
What will this deal mean to the IT services industry?
IT services providers will compete against a stronger number two vendor in the market, and IBM, specifically, will face off against HP more directly in another market.
Pring says the deal could also drive HP to invest and develop a stronger offshore workforce to enable the combined company to service multinational clients. EDS' offshore model is not as strong as IBM's and for IBM to truly consider HP a competitor, HP will have to quickly ramp up to better serve global customers. "IBM is going to look at the scale of this deal and the potential integration headache and argue that it will be a good 18 to 24 months before HP is able to take advantage of the acquisition," Pring says.
As for the Indian offshore providers such as Tata Consultancy Services and Wipro Technologies, Pring says such vendors will continue to position themselves as an alternative to IBM Global Technology Services and now HP. "This deal will only reinforce the Indian companies' portrayal of themselves as another option," Pring says. "This deal represents consolidation at the high end of the IT services market, and the Indian providers are increasing their presence in the U.S. and Europe by positioning themselves as an alternative to these U.S. companies."
What does HP have to do now to make this deal a success?
Despite having several large acquisitions under its belt -- Compaq noted as the largest -- HP will run into issues integrating the two companies.
"HP will say it knows how to do such large integration based on its Compaq experience. And they all say they don't, but companies do tend to take their eye off the ball when they are challenged to integrate companies and cultures with a deal of this size," Pring says.
For one, this is a sizeable IT services deal. It's considerably larger than IBM's $3.5 billion acquisition of consulting firm PricewaterhouseCoopers in 2002, but of less monetary value than HP's $23 billion Compaq buy.
"We have never seen anything of this scale in IT services," Pring says. "They will have to work hard to put the two organizational charts together in a meaningful way and really prove they have learned the secret sauce of big-deal acquisitions."

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What does the HP-EDS deal really mean?

HP Tuesday announced its plans to acquire EDS for $13.9 billion in a deal that would double HP's services business and revive EDS' position as a leader in global technology services. The acquisition will catapult HP's annual revenue for services from less than $20 billion to nearly $40 billion and position HP as the second largest services provider in the world. Here is a look at what is happening and why now.
What are the basics of the deal?
HP will purchase EDS at a price of $25 per share, or an enterprise value of approximately $13.9 billion. HP expects the deal to close in the second half of this calendar year, and the company reports the terms of the transaction have been unanimously approved by both HP and EDS' boards of directors. HP intends to establish a new business group to be branded EDS and located at EDS' Plano, Texas, headquarters. After the deal closes, EDS will continue to be led by EDS Chairman, President and CEO Ronald Rittenmeyer, who will report to HP CEO Mark Hurd. What does EDS bring to the table for HP?
"In a word -- big revenues," says Ben Pring, research vice president at Gartner.
EDS is the No. 2 vendor in IT services (behind IBM), reporting $22.7 billion in revenue for fiscal 2007, according to Pring, who says by acquiring EDS, HP will immediately more than double its revenue for services. HP reported its fiscal 2007 services revenue at $16.6 billion. While Big Blue brings in about $54 million in services revenue, the EDS acquisition will enable HP to quickly accelerate its position in the global technology services market. "IT services are a big and strategic part of the marketplace and they influence technology purchases downstream," Pring says. That means if IBM Global Technology Services is working with a client at the services level, there is more of a chance the customer will buy IBM technology. If HP can get its foot in the door with more services customers, hardware and software sales could follow.
"If HP had a bigger professional services umbrella and footprint, they would get greater access to a very strategic marketplace," Pring says.
What is the overlap between HP services and EDS offerings?
HP services today primarily focus around product support. EDS offers broader services that include data center management, network management and application outsourcing. The overlap could be minimal, Pring says, and enable HP to move beyond professional services designed to get its products up and running in customer IT shops to offering large-scale outsourcing services. "They don't have a huge overlap with the other business. There will be some stripping out of overlap and overhead to be sure, but HP will be getting a new set of services expertise to offer," Pring says.
Why do this deal now?
HP isn't shy about spending money on acquisitions; it purchased Mercury Interactive for $4.5 billion and some say the vendor overpaid for Opsware when it put down $1.6 billion for the automation software vendor. In the past decade, EDS has seen some hard times and perhaps the company didn't bounce back to its former glory quickly enough to compete with IBM.
"EDS had a rough ride earlier in the decade when everything slowed down," Pring says. The company in 2003 brought in Chairman and CEO Michael Jordan to "right the ship" and he helped the vendor mend contracts with the U.S. Navy. But Jordan in the last year has been passing duties onto Rittenmeyer, which hasn't reenergized the business as much as many had hoped. "EDS has been losing out in big deals to competitors in its peer group, IBM in particular, and the company's share price has been lagging for the past six months," Pring says. But since talk of this acquisition began to spread, industry watchers say the prospect of HP buying EDS will please many EDS stockholders.
"Stockholders are looking at this deal as a good exit strategy for EDS. There is a lot of excitement around this," Pring says.
What will this deal mean to the IT services industry?
IT services providers will compete against a stronger number two vendor in the market, and IBM, specifically, will face off against HP more directly in another market.
Pring says the deal could also drive HP to invest and develop a stronger offshore workforce to enable the combined company to service multinational clients. EDS' offshore model is not as strong as IBM's and for IBM to truly consider HP a competitor, HP will have to quickly ramp up to better serve global customers. "IBM is going to look at the scale of this deal and the potential integration headache and argue that it will be a good 18 to 24 months before HP is able to take advantage of the acquisition," Pring says.
As for the Indian offshore providers such as Tata Consultancy Services and Wipro Technologies, Pring says such vendors will continue to position themselves as an alternative to IBM Global Technology Services and now HP. "This deal will only reinforce the Indian companies' portrayal of themselves as another option," Pring says. "This deal represents consolidation at the high end of the IT services market, and the Indian providers are increasing their presence in the U.S. and Europe by positioning themselves as an alternative to these U.S. companies."
What does HP have to do now to make this deal a success?
Despite having several large acquisitions under its belt -- Compaq noted as the largest -- HP will run into issues integrating the two companies.
"HP will say it knows how to do such large integration based on its Compaq experience. And they all say they don't, but companies do tend to take their eye off the ball when they are challenged to integrate companies and cultures with a deal of this size," Pring says.
For one, this is a sizeable IT services deal. It's considerably larger than IBM's $3.5 billion acquisition of consulting firm PricewaterhouseCoopers in 2002, but of less monetary value than HP's $23 billion Compaq buy.
"We have never seen anything of this scale in IT services," Pring says. "They will have to work hard to put the two organizational charts together in a meaningful way and really prove they have learned the secret sauce of big-deal acquisitions."

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HP To Challenge IBM with $13.9 Billion EDS Acquisition

Tech industry heavyweights Electronic Data Systems and Hewlett-Packard are combining forces under the name EDS - An HP Company, in a deal worth nearly $14 billion, with HP acquiring EDS to compete with IBM on the technology services front. HP CEO Mark Hurd said the EDS acquisition will create a leading force in global I.T. services.

Two king-pins in the technology industry announced Tuesday a merger agreement valued at $13.9 billion, with Hewlett-Packard Co. (NYSE: HPQ) set to acquire computer consulting firm Electronic Data Systems Corp. (NYSE: EDS) in an effort to compete more aggressively with rival IBM in the technology services business.
The deal, which is set to close later this year, will more than double HP's revenue derived from I.T. services, which the company says amounted to $16.6 billion in fiscal '07.
The acquistion will produce a new services group under the EDS moniker with an HP tagline. Known as "EDS -- An HP Company," the services group will be based in EDS's current headquarters in Plano, Texas, with Ronald A. Rittenmeyer, the current CEO of EDS, continuing at the helm.
Enough To Beat IBM?
Combining forces with EDS makes HP "a lot more competitive by having a whole lot more services personnel," according to Roger Kay, principal analyst with Endpoint Technologies. "IBM is the gold standard. This gives them a better shot at it."
HP's roots in services go back to its 2002 acquisition of Compaq, which itself bought Digital Equipment Corporation (DEC) back in 1998. "They have a pretty good services group, but they wanted to compete with IBM," Kay said. "This puts them closer to that goal."
One question is how well the companies will integrate, but Kay doesn't expect many problems on that front. HP CEO Mark Hurd is "known as good at integrating," Kay said.
'Significant Premium' for Shareholders
The new EDS will provide a broad array of enterprise-oriented consulting services, such as IT outsourcing of services for the data center, networking services, managed security services, etc. The companies will offer application development, modernization and management, integration, as well as related technology services.
In addition, the 'new' EDS will handle business process outsourcing, including health claims, financial processing, customer-relationship management (CRM), and human-resources outsourcing.
Taking the Hill
Together HP and EDS are targeting a wide range of industries -- everything from government to health care to energy . Other sectors include manufacturing, financial services, transportation, communications , consumer industries, and retail.
EDS was founded in 1962 by Ross Perot, who started the company by buying unused time on a life-insurance company's IBM 7070 mainframe. The following year, EDS invented the facilities management agreement by signing a five-year, set-price contract with Frito Lay. Perot left the company in 1986 when it was acquired by General Motors, and later ran for the U.S. presidency as an independent candidate in 1992. In 1996, EDS was spun out from GM to become an independent, publicly traded company.
The original incarnation of EDS under Perot was a "hard-charging, take-that-hill kind of outfit," recalled Kay, who once interviewed for a job with the company. "I was impressed with their efficiency if not their humanity."
Under the terms of the merger agreement, HP will pay $25 for each share of EDS common stock held at the closing of the merger.

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UK should 'abandon' software market to China

U.K. software sales are on course to lag almost US$60 billion behind China this year fueling high-level calls for Britain to abandon the low-cost end of market.
Revenues in the Chinese software product and services sector are forecast to reach US$140 billion by 2010 and already hit US$21 billion during the first quarter of 2008 alone, close to the sector's US$27.5 billion revenue predictions for the entire year in the U.K.
India's software sales and services revenues are forecast to reach US$52 billion this year.
Sean Finnan, president of the U.K. Trade Association for Technology Intellect and U.K. country manager for EDS, said it is time for Britain to forget any hopes of matching China and India in the low-cost software market.
Finnan said the country should instead carve out a niche for itself in high-value end of the sector.
An Intellect report into the state of the U.K. technology industry published today shows the European technology industry growing by 5.7 percent last year, compared to 33 percent in India and 28 percent in China.
Finnan said: "It is unsustainable to try and dominate the low-cost ground. China and India will always be able to win the volume game. We need to try and follow the lead of the financial services sector to reposition ourselves at the high value end of the market. We believe that the knowledge economy services will be critical for the economy going forward."
Speaking at the launch of the report Richard Holway, of Farnham Consulting, said that less software was being sold as companies tried to extend the life of existing products.
He said: "Seventy to eighty percent of the revenue is being generated by existing clients saying they are going to keep the software longer and spend more money on bolt and add-ons."
Tom Wills-Sandford, deputy director general of Intellect, said China is yet to cut into the U.K. software market but this could change in future.
He said: "The UK software industry has seen steady growth over the last few years and is in good shape. The software sector in China is certainly growing fast, but we have not seen a significant impact in the UK from either Chinese software products or Chinese outsourcing.
"However, given their appetite for expansion into new markets, and the staggering rate of development both internally and externally seen to date, this may well change in the future."
The Chinese first quarter figures released by the Ministry of Industry and Information showed software services has generated US$4 billion, software outsourcing US$503.7 million and software sales US$7 billion in revenue during the first three months of the year.
The European Information Technology Observatory software revenues forecast for the U.K. for 2008 predicted US$15.5billion revenue from system software and US$12.26 billion from application software.

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Microsoft Exec Chosen To Run Gates Foundation

The Bill & Melinda Gates Foundation said Monday that Microsoft Corp. executive Jeff Raikes will take over in September as chief executive of the world's largest charitable foundation.
The foundation has been looking for a new leader since chief executive Patty Stonesifer announced in February that she would step down.
Raikes has been president in Microsoft's business software division, responsible for such things as the Office software suite, Microsoft's server software and applications that help businesses track customers and business processes.
In the past decade, the Gates Foundation has given away more than $16 billion, mostly in global health, global development and U.S. education.
Raikes will be the foundation's second leader since its inception in 1997. He has much in common with Stonesifer, another former Microsoft executive and friend of Bill and Melinda Gates, the co-chairs of their family foundation, which now has more than 500 employees and an endowment of $37.3 billion (EU24.17 billion).
"I'm absolutely thrilled to be joining the Gates Foundation," Raikes said Monday. "This is truly a dream job."
Melinda Gates said that when their friend Raikes expressed interest in the job, his selection was far from a done deal, however.
Raikes, 49, who announced in January he was retiring from Microsoft in September, said he thought before Stonesifer's announcement that he would like to play a role in the foundation's future but was unsure what he would like to do.
He went through the same screening process as the more than 150 other candidates. As a finalist, he was interviewed by top executives of the foundation and needed the blessing of the foundation's third-biggest donor, Warren Buffett, head of Omaha, Nebraska-based Berkshire Hathaway Inc.
Melinda Gates said she and her husband each interviewed "quite a few" candidates, but they kept coming back to the same idea.
"We really wanted to find someone to build the organization as it was," she said. "We saw in Jeff the right leadership qualities."
Raikes earned a bachelor's degree in engineering and economic systems at Stanford University. After a brief stint at Apple Inc., he joined Microsoft in 1981, working as director of software applications marketing, where he helped design and market Microsoft Office, the world's top-selling suite of office software.
He became vice president of Office Systems in 1990. From 1992 to 2000, he was responsible for Microsoft's sales, marketing and service initiatives, becoming vice president of Microsoft's Worldwide Sales and Support Group. In 2000, he returned to the business groups to focus on growing Microsoft's productivity applications.
Patty Stonesifer refused to draw a salary during her 11 years at the foundation, but Melinda Gates said the new CEO will be paid according to foundation industry standards.

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Can MVNOs bail out India's small players?

While some analysts say the introduction of mobile virtual network operators (MVNOs) can boost the ability of India's smaller operators to attract consumers, others say the local mobile market is still "under-exploited" and not ready for this move.
MVNOs are currently not allowed to operate in India, but the government is considering the possibility of changing this policy.
MVNOs provide mobile phone services but do not own any cellular telephony infrastructure, and do not have their own frequency allocation of the radio spectrum. They buy airtime from existing telecom operators and then market it by leveraging their brand and distribution network.
At present, there are over 300 MVNOs operating globally. Some prominent players include Virgin Mobile and BT Mobile in the United Kingdom, Mobile ESPN and Japan's KDDI.
"MVNOs work as a concept in deeply penetrated markets that have over-capacity," a Mumbai-based analyst with a prominent global research firm told ZDNetAsia in a phone interview.
"In India, all players are hungry for spectrum and the market is still fairly under-exploited," said the researcher, who declined to be named.
In March this year, Siddartha Behura, India's Telecom Secretary of the Government, told reporters the Indian telecom market is maturing and the government is open to allowing MVNOs into the market.
Telecom regulator Telecom Regulatory Authority of India (TRAI) last week sought views from telecom industry players on whether MVNOs should be allowed to operate in the Indian market.
Little impact until market grows Prashant Singhal, a partner at consultancy Ernst & Young India, told ZDNet Asia: "MVNOs won't make a big impact in India. Usually, MVNOs come in when telecom operators have achieved high growth and penetration. They then leave the network to the MVNOs."
Singhal explained in a phone interview that the mobile penetration rate in India is still low, at around 27 percent, and there is room to double that number in the next few years.
"When there is 50 percent penetration in India, the returns on every dollar spent on building a brand will be much lower," he said. "That's when even the large mobile operators, like Airtel Reliance Communications (RCOM) and Vodafone, may show an inclination toward selling airtime to MVNOs."
Companies such as Telekom Malaysia, Mobile ESPN and ValueFirst, have indicated an interest in entering the Indian market through the MVNO route.
According to analysts, Indian companies that have large advertising spend and existing infrastructure that can be leveraged for selling telecom products such as ITC or Kingfisher Airlines, may also make good MVNOs.
"The MVNO model can work for the fifth, sixth or seventh largest operator in India, which has little ability to attract consumers into the market," a telecom industry source, who declined to be named, told ZDNetAsia in a phone interview.
"Tata Indicom has not been successful in India. Therefore, the Virgin brand and marketing strategies will definitely help Tata Indicom," the analyst said. "In fact, I won't be surprised if Aircel also enters into a similar brand franchise arrangement."
Globally, the MVNO model is experiencing phenomenal growth in the 3G space as these operators are able to connect to consumers by offering highly-specialized value-added services and superior branding experience. It has also helped bring down call charges by increasing competition in high-price markets.
Indian telecom operators have had to delay the launch of 3G services because the country's Department of Telecommunications (DoT) has yet to allocate 3G spectrum. The department plans to do so through an auction.
If MVNOs are allowed in India, this could pave the way for global MVNOs to enter the Indian telecom market through the 3G route.

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Microsoft launches space tours on the Web

Microsoft is ready to boldly take Web surfers where no man has gone before.
The software giant on Monday launched its WorldWide Telescope, a free Web-based program that allows Web surfers to explore galaxies, star systems, and distant planets. The program, which was developed by Microsoft's research arm, marries together images from the Hubble Space Telescope, the Chandra X-Ray Observatory Center, the Sloan Digital Sky Survey, and others.
"Users can see the X-ray view of the sky, zoom into bright radiation clouds, and then cross-fade into the visible light view and discover the cloud remnants of a supernova explosion from a thousand years ago," Roy Gould, a researcher at the Harvard-Smithsonian Center for Astrophysics, said in a statement. "I believe this new creation from Microsoft will have a profound impact on the way we view the universe."
The program is similar to Google Sky, a mode of Google Earth that offers views of the universe, including high-resolution photographs from the Hubble Space Telescope and background information on discoveries and constellations.
Microsoft said WorldWide Telescope will be made available for free as a tribute to Jim Gray, a Microsoft researcher who disappeared off the California coast while sailing last year.
"The WorldWide Telescope is a powerful tool for science and education that makes it possible for everyone to explore the universe," Bill Gates, Microsoft's chairman, said in a statement. "Our hope is that it will inspire young people to explore astronomy and science, and help researchers in their quest to better understand the universe."

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Microsoft sets up R&D center in China

Software giant Microsoft said it will invest US$280 million to building a research and development center in Beijing.
Microsoft's new R&D center, which is expected to accommodate 5,000 employees upon completion, is located at Beijing's Zhongguancun Square and covers a total area of 11,600 square meters. Consisting of two buildings connected by an air corridor, the center is estimated to be completed in 2010.
Zhang Yaqin, chairman and president of Microsoft China, said that the center will become Microsoft's largest research center outside the United States.
At present, Microsoft has four offices in Beijing.

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Large Indian businesses' IT spend hit US$2.3B

Large businesses in India spent almost US$2.3 billion on IT and telecommunications in 2007, according to research house, Access Markets International Partners (AMI-Partners).
Of the total amount, IT spending contributed over two-thirds, said AMI-Partners in a statement.
In particular, AMI-Partners highlighted networking remote locations, enhancing security and increasing storage as hot spots for companies over the next 12 months--over three-quarters of large businesses responding to an AMI-Partners survey said they were interested in network connectivity; two-thirds said security and storage were crucial.
Swati Sasmal, AMI-Partners senior research manager, noted that while large businesses--defined as companies having over 1,000 employees--make up a mere 0.3 percent of "PC-owning" businesses, their IT spending makes up almost a sixth of the total by Indian businesses.
"Hence, they provide a considerable opportunity and are much sought-after by IT vendors who can earn huge returns on investment through minimal marketing. [Large businesses] possess a high level of knowledge and expertise regarding IT solutions and a well-structured and systematic purchase process.
"They are also the frontrunners in trying out newer technology solutions. These factors make it easier for IT vendors to approach them for prospective sales," added Swati.
AMI-Partners noted that the focus on networking points to a trend in large enterprises moving toward integrating their business processes, and are more aware of the benefits of the efficiency and lower error rates which integration brings.
Another factor contributing to the higher spend is the booming market--according to AMI-Partners figures, "all businesses in this segment enjoyed revenue growth" over the last financial year to the tune of 20 percent on average, with this trend expected to continue over the next 12 months, too.

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HP to acquire EDS for $13.9 billion

Hewlett-Packard said Tuesday it will acquire computer services firm EDS for $25 per share, or $13.9 billion, in a deal intended to boost HP's services revenue.
On Monday night, HP had confirmed that the two companies were in talks, following news reports earlier in the day.
The deal will create a computer services giant intended to rival IBM in the market for serving business customers.
HP said the deal, which has been unanimously approved by the HP and EDS boards of directors, will close in the second half of the year. HP expects that the addition of EDS will more than double HP's services revenue of $16.6 billion in fiscal 2007. At the end of 2007, HP and EDS had a collective services revenue of more than $38 billion and 210,000 employees, doing business in more than 80 countries, HP said.
HP said it will establish a new business group, called EDS--an HP company, which will be headquartered at EDS's existing executive offices in Plano, Texas.
EDS will continue to be led by EDS Chairman, President and Chief Executive Officer Ronald A. Rittenmeyer, who will join HP's executive council and report to Mark Hurd, HP's chairman and chief executive officer, the company said.
This isn't the first time HP has taken a crack at acquiring a major consulting firm. In 2000, HP was in talks to acquire PriceWaterhouseCoopers. The controversial acquisition was the first big move by then-CEO Carly Fiorina. But a significant earnings shortfall in the fall of 2000, along with significant hand-wringing on Wall Street, prompted HP to drop the idea.
IBM acquired PWC for $3.5 billion two years later, while HP took a dramatically different strategy and acquired PC maker Compaq.
HP, which was orginally due to report its second quarter earnings Thursday, announced the preliminary results Tuesday. Revenue earned was $28.3 billion, compared to $25.5 billion a year ago, or 80 cents per share.
It also slightly raised its outlook for year, estimating total revenue to be $114.2 billion to $114.4, up from previous high estimates of $114 billion.
CNET News.

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Google turns ordinary sites into social networks

Monday, May 12, 2008

Google has announced its Friend Connect service, which allows websites to easily embed social-networking features onto their pages.
The big sell of Friend Connect is that it allows users to embed features such as logins and message walls without needing to program anything themselves.
Instead a user simply copies a piece of code from a Google application gallery and embeds it on their site, which immediately gives them access to that feature.
The login feature is built on OpenID, meaning that users with Yahoo and AOL accounts can login into Friend Connect websites without needing to create a new profile. Similarly, because the applications are built on the OpenSocial standards, Google is expecting a wealth of third-party applications to become available to Friend Connect sites as the service gains a following.
"Social networking is going mainstream - it used to be proprietary, but now it's going to be open and baked into the infrastructure of the net, not just one site or one source," says David Glazer, a director of engineering at Google.
Users will also be able to pull their friends lists from sites with data access APIs
such as Facebook and Orkut to Friend Connect sites, though Google promises users will have complete control over which friends they wish to bring across.
A short wait
Those wishing to tinker with Friend Connect may have to wait a while, however, with the company currently accepting only a limited number of sites to trial the applications.
"At the moment people can sign up to a wait list, while we make sure the technology is ready to go," says Glazer. "That'll be months, certainly not six months though. We want to get this right, it's users' information that's involved. You can expect to see a dozen or two dozen sites live in the next few days."
Friend Connect comes just days after MySpace and Facebook announced tools allowing users to take their profiles with them to other social networking sites.
By contrast, Google's strategy seems to suggest a move away from the "walled gardens" of current sites, though the company denied that Friend Connect represented a threat to Facebook and Myspace.
"In the same way there are thousands of sites about everything on the internet, there's still a need for sites with particular authority," notes Glazer.
"[MySpace and Facebook] are experts at building social sites where people congregate. In my opinion there'll be a long tail of large and small sites feeding each other. Friend Connect is going to enlarge the ecosystem, rather than shift it."

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Cognos will protect its partners, says executive

With the US$5 billion acquisition of Cognos by IBM (NYSE: IBM), Cognos partners needn't worry about being swamped by the over 90,000 members of IBM's PartnerWorld program. Cognos partners will be protected, and IBM partners wanting to sell Cognos will need to apply to join the Cognos program like any other partner.


As IBM integrates Ottawa-based Cognos into its information management business, opportunities for synergies are being created both ways. However Mel Zeledon, senior vice-president of global alliances at Cognos, says Cognos partners will be protected.
The integration is being driven by three guiding principles: preserving the partner ecosystem, growing the ecosystem, and leveraging the broader ecosystem.
On the first point, Zeledon says no partner will be left behind. It's a lesson he says IBM has learned from previous acquisitions, when the new company's products would be opened-up to the entire IBM partner-base. The old partner eco-system of the acquired company would be swamped, diluting its investment and expertise.
“That was a lesson learned,” said Zeldon. “When IBM acquired FileNet they applied a controlled-distribution model, and now we're going to do the same with Cognos.”
The Cognos program will sit as a separate, value-based program on-top of PartnerWorld. While all Cognos partners will be automatic members of the IBM program, any PartnerWorld partner that wants to have access to, sell or implement Cognos software will need to join and qualify for the Cognos program, just like any other prospective partner.
“This is the plan going-forward,” said Zeldon. “It not only protects the partners initially, but also establishes and rewards partners for providing value to customers. We're going to provide support and incentives to the partners that provide more value.”
While protecting Cognos partners, Zeldon says they will be looking to grow the ecosystem by selectively adding partners, both IBM and non-IBM, that can add value in the mid-market, emerging markets, and around creating point-solutions.
Cognos has also set a goal to double its revenue from US$1 billion to US$2 billion by the end of 2010, so partner enablement will be a key priority going forward.
“That means there's a tremendous opportunity for the partner ecosystem to seize that growth,” said Zeldon.

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Yang says he's still open to Microsoft, but investors fume

Friday, May 9, 2008

Ballmer walked after Yahoo boss held out for $37 per share; largest shareholder 'extremely angry'

(Reuters)—Yahoo chief Jerry Yang was set to meet staff today after signaling a more open stance towards a takeover by Microsoft.

Mr. Yang told Reuters in an interview on Monday that he had “mixed feelings” about events at the weekend, when talks broke down. Investors showed their disappointment over the breakup of negotiations by sending Yahoo shares down 15% on Monday.

Asked if Yahoo would still leave a door open for Microsoft to return, Mr. Yang said: “If they have anything new to say, we would be open. ... I am more than willing to listen.”Mr. Yang said it had been Microsoft that ended the discussions.
“We were negotiating a way to find common ground and then on Saturday they chose to walk away,” said the 39-year-old co-founder of the pioneering Internet company. “They started it and they walked away.”Mr. Yang, who owns about 4% of the company, was expected to meet with employees on Tuesday in an effort to reassure them after the Microsoft talks ended.After three months of negotiations, Microsoft CEO Steve Ballmer raised his offer for Yahoo to $33 per share from an initial $31, for a total deal value of about $47.5 billion.Mr.

Yang held out for $37 per share, saying that even the sweetened offer did not value Yahoo properly for its Web search advertising technology, its prominence in selling display ads and its lucrative overseas holdings.But its two largest shareholders independently told The New York Times they would have sold for as little as $34.“I am extremely angry at Jerry Yang and at the so-called independent board,” Gordon Crawford, portfolio manager for Capital Research Global Investors, the largest Yahoo shareholder with some 16% of stock, told the newspaper.Some analysts said Yahoo shares, which dropped $4.30 to end at $24.37 on Monday, could have fallen 30% to closer to $19.18, its price before Microsoft made its bid public on Feb. 1. But the descent was cushioned by investors who are betting Microsoft will eventually come back to the table.

“This is going to play out over the next several months and there is still a chance Microsoft will buy the company for somewhere around $33 a share,” said Todd Dagres, general partner at venture capital fund Spark Capital.Late Monday, Yahoo said it will hold its annual stockholder meeting on July 3.Shares of Microsoft rose initially on Monday on investor relief that it was not paying billions more for Yahoo, though the stock ended down slightly amid concerns about how the software maker would develop its Web strategy in the face of a dominant Google.Microsoft courted Yahoo to capitalize on the rapidly growing market for Internet advertising, one that has long been served by Yahoo’s search, e-mail and Web communities.It is also trying to fend off the expansion of Google, which has made inroads into Microsoft’s home turf with a portfolio of Web based-applications, e-mail and messaging.But now that a deal has fallen apart, Google has emerged as the key beneficiary. Shares in the company rose 2.3% on Monday.“Google has just kept their foot on the accelerator,” said Derek Brown, analyst at Cantor Fitzgerald. “Neither Yahoo nor Microsoft in their current state seems to be a material competitive threat.”Yahoo is likely to press alternative strategies in coming weeks, including a search advertising partnership with Google and a deal for Time Warner Inc’s AOL Internet unit.A Google deal would boost Yahoo’s operating performance in the near term, but runs the risk of regulatory scrutiny over an alliance between the Internet’s top two players.Google and Yahoo are hammering out the intricacies of a potential deal and also are sharing their plans with antitrust regulators, a person close to Google who was not authorized to speak publicly on the matter said.In a letter to Mr. Yang over the weekend, Mr. Ballmer warned that any deal between Yahoo and Google would be difficult to unravel and would preclude an agreement with Microsoft.Mr. Yang told Reuters the company would take care to structure any new efforts to “preserve as much (as possible) long-term flexibility for Yahoo, both operationally and strategically.”Analysts expect a flurry of shareholder lawsuits against Yahoo, and say it may even face direct pressure on its board.Already, some Yahoo shareholders have started to question how talks were handled.Bill Miller, a portfolio manager for Legg Mason, Yahoo’s second-largest shareholder, told the New York Times in a Sunday interview that he would have considered selling to Microsoft for $34 or $35 a share.While that was more than Microsoft’s offer, it was less than the $37 per share Yahoo’s board had insisted on.Capital Research’s Mr. Crawford also said investors generally were looking for Yahoo to sell at $34. He hoped shareholders pushed Yahoo to revisit the issue but was not optimistic, he told the newspaper. The company owns about 16% of Yahoo.Mr. Yang said in a post on the company’s blog on Sunday night: “No one is celebrating about the outcome of these past three months ... and no one should. We live and work in a competitive world and the Web is only going to get more competitive. Executing on our strategic plan is what matters most.”

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