SAP plays down Microsoft threat

Microsoft will take a long time to get a grip on the market for enterprise software, according to SAP boss Henning Kannerman, who also says he believes Chinese and Indian competitors will present a bigger threat.

The Register reports (15 Feb.) that despite Oracle's recent takeover of PeopleSoft, and Microsoft's aborted talks with SAP, Kannermann does not think there will be much consolidation in the market.

"I don't think there will be consolidation among the big players...Microsoft is in our business already, through its small business software, but it will take them a long time to bridge the gap with the big players," says Kannerman, as reported by The Register quoting a story in the Financial Times.

The Register says that according to Kannerman, SAP has benefited from the Oracle-PeopleSoft takeover, gaining six per cent market share and Oracle and PeopleSoft have lost four per cent where they overlapped with SAP.

Talking to analysts in New York, the SAP chief said 2005 will be a year of peak investment for the company, with the hiring of 3,000 new staff and licence revenues expected to grow at 10- 12 per cent this year.

Spyware, hot topic at security conference

Unwanted programs that spy on PC users, deliver pop-up ads and track web surfing habits will be a hot topic at a security conference that's usually more focused on viruses, hackers and the encryption of sensitive information.

The New York Times/AP report (15 Feb.) that more than 11,000 people were expected at the RSA Conference in San Francisco this week. Microsoft co-founder Bill Gates was to deliver the opening speech, and other speakers include Symantec Chief Executive John Thompson and Cisco CEO John Chambers.

The paper says that so-called spyware and adware have been around for years but have largely been viewed as more of an annoyance than a security threat. Such programs are often installed on PCs when users agree to a license for free software without reading it, though later versions take advantage of flaws in Web browsers and operating systems.

According to the paper,recently the problem has developed into a major headache not only for home users whose PCs choke on a flurry of pop-up windows but also corporate computer users who run the risk of lost productivity and pilfered data from such programs.

Gates, who is now Microsoft's chairman and chief software architect, was expected to shed light on the company's plans to protect its customers from spyware. Microsoft released its own anti-spyware offering earlier this year.

Microsoft also was expected to announce moves in protecting computers from viruses following its recent acquisition of two antivirus companies, though it's not clear whether such announcements would come at the conference.

The paper says Cisco was to show off the latest phase of its strategy to protect corporate networks from attacks. The network equipment maker is announcing 10 new products, services and software enhancements to give corporate network administrators more protection.

The report in the NYT says security software companies also are increasingly adding spyware and adware to their lists of programs to find and remove. They are integrating features of programs that have been sold separately by companies focusing on spyware and adware removal

US telco mergers raise regulatory issues

The New York Times reports (15 Feb.) that most people in the US expect the huge telecommunications mergers recently announced to be approved in the current political climate, but that the deals could prompt a considerable fine-tuning of existing rules.

The paper says that the consolidations, a natural outgrowth of the deregulatory agenda of the US Federal Communications Commission under will present it with a crucial opportunity to rewrite the rules governing the industry.

The conditions set - or brushed aside - by regulators in deciding whether to approve each of the three big deals announced in the last few weeks will be among the most significant policy decisions for the industry since Congress rewrote telecommunications rules nine years ago, according to the NYT.

Verizon Communications' announcement that it will buy MCI follows the proposed acquisition of AT&T by SBC Communications and Sprint's purchase of Nextel.

According to the NYT., if the regulators respond by attaching important conditions to approval of the mergers, they may relieve significant pressure on Congress to conduct a quick overhaul of the Telecommunications Act of 1996. One thing is certain, says the paper: the proposed deals will remove AT&T and MCI, the two major adversaries of the regional Bell companies, from political lobbying.

The report in the NYT say that over the last four years, the commission has moved away from trying to manage competition among the phone companies by repealing or watering down rules that were intended to encourage - and subsidise - smaller rivals to the Bell companies. Mr. Powell has maintained that the regulations were no longer necessary and that enough new competition to the Bells is coming from cable and wireless businesses.

Perhaps the most important of the deregulatory changes were ones issued last year that eliminated the relatively inexpensive access that long-distance companies had to the networks owned by the regional Bell carriers, says the paper, also observing that the elimination of low access rates led to significant financial pressure on both AT&T and MCI. In AT&T's case, the change ultimately caused it to move toward withdrawal from the residential telephone business. MCI has also reduced its residential business.

Industry analysts, executives and government officials said they expected that the FCC and the Justice Department would approve the deals even though consumer groups have expressed fear that further consolidation in the industry will mean higher prices and reductions in service, rerports the paper.

Hitachi to offer security - enhanced notebook PCs

Japan's Hitachi has just announced that it will launch notebook computers with no hard disk drives, offering corporate clients a way to protect key business information from potential leaks.

A report by the New York Times/Reuters (15 Feb.) says that the new terminal does not store any data, such as client information, in it, and all tasks are carried out by interacting with server computers or PCs at headquarters, protecting vital business information even when the computer is lost or stolen.

The paper says shipments of the new computer, estimated to sell for around 260,000 yen (US$2,476) per unit, will start in April, and Hitachi expects 30 billion yen in sales of the terminals and related services in the two years to March 2007.

Hitachi itself plans to introduce 2,000 units by March for in-house use and another 8,000 in the business year starting in April, according to the NYT.

Nokia deal to use Microsoft's music formats

Nokia and Microsoft, which have a history as rivals, have decided to work together when it comes to mobile music.

The New York Times carries a reporet (14 Feb.) from the International Herald Tribune which says that Nokia, the leading cellphone manufacturer and a longtime Microsoft competitor in mobile phone software, has just said that it had agreed to use Microsoft's music formats on its handsets.

And in another advance for mobile music, Sony Ericsson Mobile Communications said it would make Sony Walkman-brand cellphones that would work with customers' digital music collections on their personal computers, as well as connect with music downloading services.

The paper says the companies made their announcements at the 3GSMWorld Congress, currently being staged in Cannes, France. They forecast a huge increase in the number of people using their cellphones to listen to music, especially with the growth of faster, or third-generation, cellphones.

At the moment, digital music is largely carried on portable players that are intended strictly for music, like the iPod made by Apple Computer. But hardware, software, music and phone companies agree that there is a mass market - particularly among young people - for music on demand that is sent over the air to cellphones.

The paper reports that the Windows Media Player, the program Nokia is licensing for its phones, is already a leading software program for listening to music on personal computers.Until now, Nokia has been using an internally developed program or music software made by RealNetworks.

Analysts told the paper that this is a big shift by Nokia,with the company conceding they can't do everything themselves.

Nokia and Microsoft use rival software for the operating systems that run cellphones. They have been on opposite sides in other areas, notably the European Commission antitrust case against Microsoft last year over sales of its operating system.

Also at the congresss on Monday, Microsoft announced that Flextronics International would make low-cost cellphones with Windows Mobile, the software that competes with Nokia's Series 60 operating system made by Symbian.

The NYT reported Nokia as saying that the cooperation had come out of long-term work by both companies on industry forums to widen the use of open standards.

Nokia also said that it had agreed to license Microsoft's e-mail synchronisation system, called ActiveSync, to permit its business customers to use their Windows e-mail software on the road from their phones.

The NYT also reports that for Sony Ericsson, a joint venture based in London, the decision to make Walkman phones was less surprising, accortding to a Gartner analyst.

Sony Ericsson, a leading manufacturer in Europe but a laggard in North America,according to the paper, expects to show the first Walkman phones in March. They will be compatible with the Sony Connect download service, as well as others.

Kodak aiming at health care

Kodak, seeking to expand its health care business, is working with IBM to develop computer systems to manage radiology and related records at smaller hospitals and imaging centers, reports the New York Times/Bloomberg (15 Feb.)

Kodak has said the market for health care information technology is worth US$60 billion a year and growing,and the company goal is to produce cheaper, simpler hardware and software systems for managing radiology records.

The NYT/Bloomberg report says that Kodak is seeking to expand its health care sales by building on its radiology business. The company also said it introduced enhancements to its secure e-mail system for sending medical records, including electronic postmarks by the postal service, and reached agreement with Cisco Systems to include Cisco's antivirus security system in Kodak's medical products.

Email bug made computers phone emergency line

In the US, a Louisiana man has pleaded guilty to sending rigged e-mails that caused some computers to dial the 911 emergency services number, according to prosecutors.

The New York Times/Reuters report (14 Feb.) that David Jeansonne, 44, admitted to sending e-mails to about 20 subscribers of Microsoft's WebTV, a television internet service since renamed MSN TV.

An attachment to the e-mail rewrote the user's access WebTV number to 911 so that the next time the service was used, calls to WebTV in Santa Clara, California were diverted.

At least 10 WebTV users reported that the local police either called or visited their residences in response to the unnecessary 9-1-1 calls, reported the paper.

Jeansonne faces a maximum penalty of 10 years in prison after pleading guilty to two counts of intentionally damaging computers and causing a public safety threat, reports the NYT.

Mobile phone industry eyes music downloads

Nokia has unveiled a new 3G phone with an integrated music player and high-quality stereo output at the 3GSM World Congress in Cannes, reports The New York Times/AP (15 Feb.).

The paper reports that mobile phone makers and networks are looking for ways to boost their revenue given difficulties finding new customers in saturated industrialised markets and even in some data services for their future profitability. Such calls could soon be possible with mobiles: Motorola and internet phone (VoIP) company Skype have just teamed up to explore that possibility.

The NYT says that with high-speed 3G networks now widespread, companies like Nokia hope demand for pricier, more sophisticated phones and airtime will be spurred by new features from wireless gaming and instant messaging to pay-TV and remote banking services.

According to the paper, the uptake of 3G phones last year fell short of earlier predictions, but Nokia said this week it still expects usage to reach 70 million people at year's end, up from 16 million in December.

The company unveiled three new models at the congress: two 3G 'smartphones,' the 6680 and 6681, and the 6101 folding camera phone that can be heavily customised to suit operators' needs and branding.

Nokia has partnered with Seattle-based Loudeye, reports the paper, to provide a download service to make songs available and hinted that deals with recording labels could follow.

Smaller rival Sony Ericsson also announced two new 3G phones: the K600 designed for business applications such as video conferencing and seamless e-mailing; and the Z800i, a clamshell design with an MP3 music player and user-friendly playlists.

But, the NYT says the bigger news was the imminent arrival of the new Walkman phones, which the company said will be unveiled in March.

French consumer group sues Apple, Sony

A French consumer group has initiated legal proceedings against Apple and Sony, claiming their online music sites violate European anti-trust legislation.

The Register in the UK reports (14 Feb.)that Paris-based UFC-Que Choisir claims that Apple's iTunes Music Store and Sony's Connect service are anti-competitive because they only work with the companies' own music players.

However, The Register describes the claim as "nonsense", making the point that in Apple's case songs can be downloaded and played on any Windows PC - a kind of machine the company does not itself produce. In addition, The Register says Sony Connect songs can similarly be downloaded and played on any PC - it doesn't have to be a Sony Vaio.

To be fair, says The Register, UFC-Que Choisir's complaint focuses on portable players, but since Apple has allowed Motorola to build an ITMS-compatible phone, its argument looks weak.

Apple can also argue that the French government's anti-trust watchdog has already ruled that it has a right to maintain a proprietary link between its music store and the iPod. Last November, the watchdog dismissed an attempt by Virgin's French retail subsidiary, VirginMega, to force Apple to license the Mac maker's FairPlay DRM technology, which would be essential to allow any third-party device to play ITMS-downloaded songs, reports The Register

The Register says that Sony and Apple will have to answer the claim in the French court later this year.

UFC-Que Choisir wants the two companies to open up their music stores to other device makers and to cough up €30,000 ($38,595) in compensation.

US info-sharing initiative a flop

Nearly a year after its launch, a US federal office created as a conduit for corporate America to provide the government with sensitive information about critical vulnerabilities has been all but rejected by the technology industry that helped conceive it, reports The Register in the UK (15 Feb.).

The Register says that the Protected Critical Infrastructure Information (PCII) program allows corporations who run key elements of US infrastructure to submit details about their physical and cyber vulnerabilities to a special office within the Department of Homeland Security, with legally-enforceable assurances that the information will not be used against them or released to the public. The effort is funded at US$5.5m in the White House's 2006 budget request.

The Register reports that the PCII program has gone completely unused, at least by the information technology world and according to the Information Technology Industry Association of America, which hadlobbied hard for the original legislation, but takes issue with DHS'simplementation.

The report says that the IT Information Sharing and Analysis Center, an industry security coalition whose members include Microsoft, Oracle and Intel, has not submitted a single piece of vulnerability data through the PCII program,
The electric power industry has also not availed itself of the program, daunted by the PCII office's requirement that any submissions be made though old fashion paper filings.