Europe gains support in fight with Microsoft

Five leading technology companies are supporting European Union regulators in their legal battle with Microsoft, a lawyer for the group has said.

IBM., Oracle, Red Hat, RealNetworks and Nokia have applied to intervene against Microsoft in its court appeal of a European Union antitrust ruling last year, as reported by the New York Times (7 April).

The companies' stance counters Microsoft claims that the case by the European Commission, the union's antitrust arm, was without industry support, the NYT reports.

The paper says that with the exception of RealNetworks, which has sued Microsoft separately, the intervention of several major technology companies against Microsoft is noteworthy because they have tended to be reluctant to take such a public stand.

Red Hat is a major distributor of the open-source Linux operating system, which IBM also promotes. Oracle's chief executive, Lawrence J. Ellison, is a longtime nemesis of Microsoft, and Nokia faces a threat from Microsoft in mobile software, reports the NYT.

Microsoft has appealed at a European Union court against the March 2004 ruling in which the commission fined it 497 million euros (US$640 million) and ordered it to share technology with competitors that make server software so their products can better communicate with Windows-powered computers.

The regulators also ordered Microsoft to produce a Windows version minus its multimedia player to provide a more level playing field for competitors, the paper reports.

New version of MSN Messenger released

In its latest bid to make money on free Internet services, Microsoft is betting that consumers will be willing to use their instant messaging identities as billboards for products ranging from Sprite to Adidas sneakers.

The New York Times/Associated Press report (7 April) that the newest version of MSN Messenger instant messaging product, released late Wednesday, allows consumers to download free backgrounds, pictures and other content tied to specific ad campaigns. The hope is that users will then share those downloads with other consumers -- providing another boost to advertisers, who pay Microsoft for the privilege.

A spokesman for Microsoft's MSN online unit, said the company hopes to attract users who are so taken by the advertising campaigns that they choose to associate themselves with the brand -- much like a person might buy a Starbucks Corp. coffee mug, the paper and AP report.

The NYT and AP report that Microsoft is launching the program with German sportswear maker Adidas Salomon and Sprite, made by Coca-Cola.

An analyst with Forrester Research said Yahoo's messaging service has been providing a similar service for some time, report the NYT & AP.

Microsofty told AP and the NYT that it also is expanding other advertising functions. That includes gearing ads to users it believes are of a certain age or gender, or who live in a specific area. The company also will begin putting text ads at the bottom of instant messaging screens.

The paper and AP report that Microsoft also is releasing the official first version of MSN Spaces, a free personal web journal system that debuted in test form in December. As part of an advertising campaign, Ford's Volvo Cars of North America is debuting its own "space" that will solicit commentary from Volvo loyalists. Microsoft said Volvo will have editorial control of the posts.

Mobile trojan kills smart phones

Virus writers have created a mobile Trojan capable of rendering an infected Symbian Series 60 unusable. Fontal-A is a SIS file Trojan that installs a corrupted font file on the device, causing it to fail when the mobile phone is next rebooted.

The Register reports (7 April) that Fontal-A is a Trojan, incapable of spreading by itself or via Bluetooth. The small risk of infection applies only to people in the habit of installing warez mobile games files or the like onto their mobile phone.

According to The Register, as well as installing a corrupted font file, Fontal-A also damages the application manager so that it cannot be uninstalled. No new applications can be installed until the phone is disinfected. If the user has attempted to reboot the phone the only way to disinfect it is to reformat a mobile device, according to preliminary advice by anti-virus firm F-Secure. It warns that reformatting the phone will cause all data on the mobile to be lost, says The Register.

Mozilla has patched a vulnerability in its popular Firefox web browser that could allow hackers to snaffle information from the PCs of surfers, a ccording to a report in The Register (6 April).

The Register says that the JavaScript-related security bug, which affected versions 1.0.1 and 1.0.2 of Firefox, created a means for hackers to seize potentially sensitive information in memory.

Exploitation of the flaw, discovered by Russian bug hunter Azafran, would be far from trivial. Nonetheless security firm Secunia describes the heap buffer overflow bug as "moderately critical". It has put together a test allowing users to check whether they are exposed to the problem. Secunia advised users to disable JavaScript support as a precaution. According to a posting on Bugzilla, Mozilla has fixed the flaw. Security conscious surfers are advised to download this update, reports The Register.

The Register says a potentially far more serious unpatched security vulnerability affects unspecified versions of Microsoft's Internet Explorer and Outlook software. The vulnerability "allows malicious code to be executed with minimal user interaction", warns security outfit eEye, which recently reported the bug to Microsoft, says the publication.

Microsoft said it was not aware of any malicious attacks attempting to exploit the reported vulnerabilities, and there was no customer impact based on this issue. Upon completion of an investigation, Microsoft said it will take the appropriate action to protect its customers, which may include providing a fix through a service pack, our monthly release process or an out-of-cycle security update, depending on customer needs.

Google cuts price on search hardware licenses

Web search leader Google has said it has cut the price on licenses for its hardware that helps small and medium-sized businesses add search to their internal networks and public web sites.

The New York Times and Reuters report (6 April) that the price of an entry-level license for the Google Search Appliance will fall to $30,000 from US$32,000 and continue to include two years of customer support. That license, which is sold largely to medium-sized businesses, will allow users to search up to 500,000 documents, compared with 150,000 under prior terms.

The paper and Reuters say that the highest end license for the Google Search Appliance, a box containing both hardware and software, allows for the search of up to 15 million documents and costs significantly more.

The company also cut to US$2,995 from US$4,995 the license price on the Google Mini -- a search appliance for small businesses that was released in January. That license includes one year of support and allows holders to search up to 100,000 documents versus 50,000 documents previously, says the report.

Intel upbeat on NOR flash

Intel, the world's largest chip maker, has said it aims to extend its recent growth momentum in NOR flash memory to become the No.1 player in 2005, overtaking rival Advanced Micro Devices (AMD).

The New York Times reports (7 April) that, as part of its drive to excel in the NOR flash market, Intel, based in California, unveiled an advanced flash memory targeted at consumer electronics products such as flat televisions and digital cameras.

The paper says the Intel StrataFlash Embedded Memory, with a capacity of 64 to 512 megabits, will become available this quarter, with a 1 gigabit version set for launch in the second half of 2005.

Flash memories, which have two major subcategories -- NOR-type flash and NAND-type flash -- retain data even after power is turned off, making them an ideal rewriteable memory device for mobile and other electronics products, says the paper.

The NYT says that South Korea's Samsung Electronics dominates the NAND flash market while Intel and AMD compete neck and neck in the NOR flash market.

In 2004, Intel took 24.5 percent of the US$9.3 billion NOR flash market, just behind AMD's 25.9 percent, according to data from research firm iSuppli. But in the third and fourth quarters Intel became the No.1 player, surpassing AMD, says the paper.

Analysts attributed Intel's success to its aggressive pricing, and the company said it would maintain an aggressive stance for further growth in the flash market.

IBM and NetApp in broad alliance against EMC

IBM and Network Appliance said on Wednesday they agreed to a deal where IBM will resell a broad line of Network Appliance storage products, taking aim at corporate data storage supplier EMC and its allies.

The New York Times/Reuters report (6 April) that the companies said Network Appliance (NetApp) had agreed to use IBM's Tivoli software as a preferred method for handling storage management and would recommend IBM tape storage systems to their customers as a preferred product.

The paper and Reuters say the deal brings together Network Appliance, the market leader in so-called "network-attached storage" (NAS), with IBM, which has a broad range of storage products including the leading share of storage tape products used for archiving data.

But the move also looks set to push EMC allies Cisco and Dell closer into EMC's orbit as competition in the corporate data storage market heats up, executives and Wall Street analysts said of rival alliance, reports the NYT/Reuters.

IBM said it viewed the relationship as a strong win-win situation wherein IBM fills the NAS hole in its portfolio...and Network Appliance gains access to IBM's strong reach especially in Europe and Asia.

The NYT and Reuters say that while the deal plays to both IBM and NetApp's respective strengths, it also is designed to overcome a weakness in IBM's portfolio of storage offerings.

IBM and NetApp said they had agreed to an original equipment manufacturing deal in which IBM will be able to sell the full line of NetApp products under the IBM brand.These include network attached storage (NAS) and iSCSI/IP storage area network products sold under brand names such as NearStore and NetApp V-Series Systems, and related software. NetApp is market leader in both categories, according to IDC, the NYT and Reuters report.

However, an EMC spokeswoman said her company has seen little impact from IBM's prior effort to sell NetApp equipment. She said the new NetApp deal was the latest in a string of failed partnerships where IBM has sought to patch holes in its storage line-up with Compaq, now part of Hewlett-Packard Storage Technology and Hitachi, the NYT/Reuters report.

And, Dell said it plans to aggressively target the NAS market with EMC, Dell manufactures and resells a line of EMC storage products that is growing at roughly 46 percent a year, making it one of EMC's biggest sales partners, according to the NYT/Reuters.

TiVo acquires six US patents from IBM

TiVo, a maker of digital video recorders, has announced that it has acquired six US patents from IBM that cover interactive television, boosting TiVo's total patent portfolio to 76.

The New York Times/Reuters report (7 April) that the acquired patents cover audience measurement, the integration of internet and TV, automatic scheduling of recording, content screening, information searching and electronic program guide enhancements, TiVo said.

The paper says that TiVo, which makes its own video recorders and offers its service to users of the DirecTV satellite service, did not disclose the terms of the deal. An IBM spokesman said the patents had originally been filed for a now-defunct IBM digital video products group.

According to the NYT/Reuters, TiVo early last year asserted its intellectual property to fend off competition from satellite TV provider EchoStar Communications, which operates the DISH Network satellite TV service. The patent infringement case, covering video recording technology, is set for jury selection in October in a Texas court.

TiVo's recorders store TV shows on a computer hard drive, allowing viewers to pause live television, skip over commercials and record dozens of hours of programing, the paper and Reuters report.

US VoIP market battles: Verizon price cutting

In the US., telco Verizon Communications has launched a cheaper version of its VoiceWing Internet phone service, another move in the price wars for voice-over-Internet-protocol, also known as VoIP.

SiliconVallery.com repoprts (6 April) that the New York-based telecommunications giant said the new option provides 500 minutes of outbound local and domestic long-distance service for US$19.95 a month. The service, dubbed VoiceWing 500, includes unlimited inbound calls and free calls to other VoiceWing subscribers.

The publication reports that Verizon's move comes amid heated competition in Internet telephony, where rivals like AT&T Corp. and Vonage Holdings have slashed prices to lure customers. VoIP allows customers to make phone calls over broadband internet connections, usually at much lower cost than traditional phone service.

AOL launches internet phone service

America Online (AOL) has launched its internet telephone service (VoIP), jumping into a market that's already crowded with startups, cable operators and even traditional phone companies.

The New York Times and Associated Press report (7 April) that the AOL Internet Phone Service, which is being offered to AOL members and others in 40 markets at first, includes the regular features of traditional telephony and combines them with advanced services that are accessed on a PC over the Internet.

The paper says that according to AOL.,the offering "will uniquely combine advanced tools, competitive pricing plans and AOL's hallmark ease of use to allow mass-market consumers to take full advantage of the revolution underway in Internet voice technology".

The technology, known as Voice over Internet Protocol, VoIP, is being touted as the next big revolution in communications. Instead of traveling over the traditional phone system that's been around for more than a century, calls are converted to packets of data and streamed over the internet. All providers generally charge less and offer more advanced features than traditional phone companies, the paper and AP report.

File-sharing:latest battleground in clash of technology and copyright

Last week, the US Supreme Court heard oral arguments in Metro-Goldwyn-Mayer Studios v. Grokster, a case that has important implications for the future of online innovation.

The New York Times reports (7 April) that Grokster makes software that enables internet users to share computer files on peer-to-peer networks. The technology has been used to distribute many kinds of content, including copyrighted digital music.

The paper says that MGM and other entertainment companies want to hold Grokster liable for the copyright infringement that occurs when users download copyrighted music without paying for it. Grokster argues that there are many legitimate uses for its technology and that it is not responsible for those who use it to violate copyrights.

According to the NYT.,this is just the latest instalment of a longstanding battle between technology companies and copyright holders.

Web researcher to buy German rival

Greenfield Online, a US provider of internet-based market research, is expected to announce the acquisition of Ciao, a German company that provides the same services in Europe, for about US$154 million in cash and stock.

The New York Times says (7 Apil) that Greenfield, which uses internet surveys to provide feedback to market research and consulting companies, said it believed that Ciao, which is based in Munich and has offices in five European countries, was the largest independent provider of such information in Europe.

Greenfield agreed to pay about 58 million euros in cash (US$74 million) and nearly four million shares of its common stock to acquire Ciao, according to a statement about to be released.

Greenfield, said that the acquisition would help accelerate Greenfield's global growth. The company had sales of about US$44 million last year and Ciao had sales of about 18.1 million euros (US$23.3 million).

Nintendo follows Apple with retail store
 
The New York Times reports (7 April) that, borrowing a page from Apple's marketing playbook, Nintendo, the Japanese video game giant, will open a retail store in Manhattan this US spring.

The Nintendo World Store, which company officials say will be the first anywhere, will feature many of the company's popular video games and consoles, including the GameCube, Nintendo DS and Game Boy line.

The NT says that much like Apple Computer high-end outlets (and similar stores operated by Sony and Samsung), the Nintendo store will include high-tech trappings like interactive stations, and will provide previews of new and unreleased software, a Nintendo spokesman said.

The paper adds that the plan for the store comes as Nintendo faces new competition from Sony's PlayStation Portable, or PSP, a hand-held console that has received favorable reviews. Nintendo also has rivals in the home console market in Sony's PlayStation 2 and Microsoft's Xbox.

Intel, AMD race to be first with 2-processor chip

Intel and Advanced Micro Devices (AMD) are racing to introduce a dual-core computer chip in what could be the biggest change in PC technology in a decade.

The New York Times and Reuters report (6 April) thaty both companies have something to prove and both expect in a matter of months to launch products which essentially combine two microchips into one.

For Intel, says the NYT/Reuters report, the transition offers a chance to shake off a year's worth of missteps and delays with an on-time product introduction; for AMD, the change amounts to its best opportunity in years to take business away from Intel, its much larger arch-rival.

Having approached the limits of speed gains with traditional chips, Intel and AMD have moved to combine two chips onto a single piece of silicon, say the NYT and Reuters.

The report says the result is one chip with two cores that can operate independently -- with one, for instance, processing a television show while the other scans for viruses.

The NYT and Reuters say that Intel on Monday turned heads in the computer industry by allowing independent reviewers to publish performance tests on its first dual-core computer chip, called Extreme Edition, before it becomes officially available. The reviews were generally positive, though some noted the chip's high heat production.

AMD, which has set a "mid-year" target release for its dual-core chips, is dropping hints that the product may arrive sooner. It has told the media to expect important news at a New York event on April 21 to mark the two-year anniversary of its Opteron chip for business PCs, known as servers, says the report by the NYT and Reuters.

Last year, both Intel and AMD accelerated plans to switch to dual-core products for their Pentium and Athlon brands of microprocessors, the central chips in personal computers, the report says.

Intel's Pentium D and Pentium Extreme Edition will be used in desktop computers; AMD's dual-core Opteron chip will target servers. Then, through 2006, the companies will broaden their dual-core lines into all the major PC markets: mobiles, desktop and server.

Loophole on '.pro' web names

A company has found a loophole for selling internet names ending in ".pro" without the usual credentialing requirements, prompting complaints from the internet's key oversight agency.

The New York Times and AP report (7 April) that the Internet Corporation for Assigned Names and Numbers, or ICANN, created the ".pro" suffix in 2000 for professionals.

Lawyers, accountants, doctors and engineers in the United States, Canada, Germany and the United Kingdom could get such names if they submitted proof of their professions. So a law firm called Smith Jones could get "smithjones.law.pro." It's known as a third-level domain name because it's the third from the right, say the NYT and AP.

ICANN later allowed second-level names -- such as "smithjones.pro" -- as long as the individual or firm already has a third-level name.

But last month, EnCirca Inc. began offering second-level names without the third-level requirement and said any profession at all could get one. It also expanded the service beyond the four countries in which credentialing procedures had been established.

ICANN responded by suggesting the new service "violates the spirit of name restrictions."

EnCirca said it plans to keep offering the service unless restrictions are set, the NHT and AP report.

Dell sees $80 billion revenue within four years

Dell has confirmed its guidance for first-quarter earnings and said Wednesday that it plans to more than double its buyback of stock in the quarter.

SiliconValley.com says (6 April) that the personal-computer maker also said it expects annual sales to reach US$80 billion in the next three to four years. The announcement came during Dell's annual meeting with analysts.

The online publication reports that Dell said it continues to expect earnings of 37 cents per share on sales of US$13.4 billion in the February-April period. That reaffirmed guidance the company gave 10 Feb. and matched current estimates of analysts surveyed by Thomson First Call.

Dell said it planned to repurchase $2 billion worth of stock in the current quarter, more than double its previous plans. The company said it has bought back enough stock to reduce its average share count by more than 9 percent in the past four years.

Dell predicted that revenue will grow from $49 billion to $80 billion over the next three to four years, potentially faster than analysts had predicted.

Analysts expect the company to post sales of $57.46 billion this year, $66.11 billion the next and $75.63 billion in fiscal 2008.

After nearly hitting $50 billion in sales last year, the company raised its goal from $60 billion to $80 billion in annual revenue. But as recently as February, Chief Executive Kevin Rollins declined to offer a schedule for achieving that mark.

Rollins said the company's growth and profitability would be based on defining new products and services to offer and growing faster in existing businesses. The company said Rollins would discuss the $80 billion revenue goal in more detail with analysts Thursday.

Dell has strengthened its industry-leading position in PC sales by reducing costs and undercutting rivals on price. The company has also expanded into servers, data-storage equipment, printers, consumer electronics and technology services.

After hitting a four-year high in December, the stock has fallen 9.5 percent this year through the end of regular trading Wednesday, in which the shares lost 98 cents, or 2.5 percent, to close at $38.15 on the Nasdaq Stock Market. In extended trading after the company announcement, the shares gained 48 cents to $38.63.

Qwest refuses to concede in MCI bid

Qwest Communications, the smallest of the regional Bell phone companies, is not giving up its efforts to stop Verizon Communications, its bigger rival, from acquiring MCI.

The New York Times reports (7 April) that Qwest has requested MCI's shareholder list, according to industry executives briefed on the discussions, in a move that could lead to a protracted, if uphill, proxy battle that Qwest hopes will convince those holding a majority of MCI's shares of the superiority of its bid.

MCI's board yesterday affirmed for the third time its intention to keep its less lucrative deal with Verizon, and in a statement, MCI's board said that it believed that Qwest's US$8.9 billion bid was not superior to Verizon's US$7.6 billion offer, the NYT reports.

Given the financial terms of Qwest's bid, the negative reaction from MCI customers and other considerations, the board said it was unwilling "to jeopardise the certainty of its Verizon agreement for the uncertainties surrounding the Qwest proposal," reports the NYT.

But, the paper says that MCI said it was still open to continuing talks with Qwest if it were to make another enhanced bid.

By some analysts' estimates, though, only one-third of MCI's shareholders favor Qwest's bid, making it unlikely the company could obtain the majority of votes needed to block a deal with Verizon. Qwest could also gain leverage over MCI by trying to buy a block of the company's shares, but that is only a remote possibility, the NYT reports.