Domain: bloomberg.com
Stories and comments across the archive that link to bloomberg.com.
Stories · 1,477
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What is Apple Without Steve Jobs?
necro81 writes "David Pauly at Bloomberg has written a piece that asks 'Does Apple Inc. Have a Future Without Steve Jobs?' He writes in the context of Jobs' latest success in launching the iPhone, set against the backdrop of stock backdating troubles. In Pauly's worst-case-scenario, the SEC prosecutes Apple, and the board is forced to oust Jobs.Even without resorting to such scenarios, it's an interesting question to ask the fanboys and detractors out there: could Apple succeed and continue to innovative without Jobs at the helm?" -
Quake in Taiwan Cripples Internet
judebx writes "Powerful quakes measuring 7 on the Richter scale have struck southern Taiwan and caused damage to undersea communication cables, disrupting telephone and internet services in several parts of Asia. The quake comes on the second anniversary of the Indian Ocean Tsunami, and triggered tsunami warnings. Human casualties, however, have been low so far." -
George Orwell Was Right — Security Cameras Get an Upgrade
Jamie stopped to mention that Bloomberg is reporting on a recent addition of speakers to public security cameras in Middlesbrough, England. From the article: "`People are shocked when they hear the cameras talk, but when they see everyone else looking at them, they feel a twinge of conscience and comply,' said Mike Clark, a spokesman for Middlesbrough Council who recounted the incident. The city has placed speakers in its cameras, allowing operators to chastise miscreants who drop coffee cups, ride bicycles too fast or fight outside bars." -
Google Reaches Second-Most Visited Site Status
Another anonymous reader has written to mention a story carried by Bloomberg, which has the news that Google is the second-most visited site on the internet. This puts it out in front of Yahoo!, which previously held the position. Google is now just behind Microsoft which, as the submitter pointed out, is the site that IE defaults to. From the article: "Visitors to Google's sites rose 9.1 percent to 475.7 million in November from a year earlier, while those to Yahoo sites rose 5.2 percent to 475.3 million, ComScore Networks Inc. said today. Both sites trail Microsoft, which had 501.7 million visitors, ComScore said. It is the first time that Mountain View, California-based Google attracted more visitors than Yahoo, reflecting Google's growing popularity outside the U.S." -
Arctic Ice May Melt By 2040
Dekortage writes in with a new study by the National Center for Atmospheric Research suggesting that the North Pole may be clear of ice in summer as soon as 2040, decades earlier than previously thought. From the article: "'As the ice retreats, the ocean transports more heat to the Arctic and the open water absorbs more sunlight, further accelerating the rate of warming and leading to the loss of more ice,' Holland said in the statement. 'This is a positive feedback loop with dramatic implications for the entire Arctic.'" -
NPD Reports November Console Sales
CBackSlash writes "Joystiq has a summary of the NPD console sales numbers for November 2006. The big headline is that the industry overall was up 34 percent to $1.7 billion. But the smaller headlines are probably more interesting for us: PS3 only shipped 197k, while the XBox 360 had 511k, and the Wii had a very respectable 476k. However, all of the new consoles were outsold by the lowly PS2 (664k) and DS Lite(641k)." These are a more detailed set of numbers than those we discussed on Wednesday. -
UK Lab Traces Polonium To Russian Nuclear Plant
reporter writes "British authorities had identified polonium 210 to be the radioactive poison that killed Alexander Litvinenko, the former Russian spy who defected to Great Britain. Now, according to a disturbing report, the authorities have identified the source of the poison to be Russia. Bloomberg ominously reports, 'Scientists at the U.K.'s Atomic Weapons Establishment in Aldermaston, west of London, have traced the polonium 210 found in London to a nuclear power plant in Russia, the capital's Evening Standard newspaper reported today. Officials at the establishment didn't return calls.' A cold chill just fell on relations between Russia and the West." In another twist to this developing story, the shadowy Italian security consultant who dined with Litvinenko has also fallen ill with radiation poisoning. -
Sony, Analysts React To PS3 Launch
cdneng2 writes "Sony may be aware that something is just not right. There's a reshuffling of management occurring within Sony. Kazuo Hirai is set to head their videogame unit, as Ken Kutaragi has been bumped to the Sony board. Jack Tretton, former COO for SCEA, is now the president and CEO of that arm of the company. There's no word on the reasoning behind these position shifts. On the same day, Namco announced that they must sell 500,000 games to begin making profit on PS3 games. A Financial Times article confirms speculation on how hard it will be for Sony to make money, as analysts with UBS predict that 30 games must be sold per PS3 for them to break even." To add insult to injury, EA CEO Larry Probst has said PS3 numbers were lower than expected. Current thinking is that Sony managed to ship roughly half of the 400,000 units they were promising. -
Sony Says They May Not Hit PS3 Shipment Targets
Via 1up, a Bloomberg article exploring the possibility that Sony may not hit their shipment targets for the PS3. From the article: "Sony plans to ship two million PlayStation 3 players this year to the U.S. and Japan, and six million worldwide by March. The Tokyo-based company said yesterday annual profit would fall 35 percent to its lowest in five years on price cuts of the console in Japan and a recall of 9.6 million computer batteries. 'The honest answer is it's more of a target' for PlayStation 3 shipments, Jack Tretton, co-chairman of Sony Computer Entertainment America, said yesterday in an interview. 'Clearly we've had production issues.'" -
US Outlaws Online Gambling
imaginaryelf writes, "As reported earlier on Slashdot, in the closing hours of the US Congressional session on Friday, September 29, the Unlawful Internet Gambling Enforcement Act of 2006 (H.R.4411.RH) was attached to the Safe Port Act of 2006 H.R.4954.EAS. To the surprise of many, the bill passed both the House and the Senate, and Bush is expected to sign it into law this week. This effectively outlaws online gambling in the US, by way of making it illegal for credit-card companies to collect payments for bets. The financial markets punished the stock of online gambling companies as some prepared to pull out of the US entirely." -
Has Orwell's '1984' Come 22 Years Later?
gabec asks: "This weekend my mother bought a grille lighter, something like this butane lighter. The self-scanner at Kroger's locked itself up and paged a clerk, who had to enter our drivers license numbers into her kiosk before we could continue. Last week my girlfriend bought four peaches. An alert came up stating that peaches were a restricted item and she had to identify herself before being able to purchase such a decidedly high quantity of the dangerous fruit. My video games spy on me, reporting the applications I run, the websites I visit, the accounts of the people I IM. My ISP is being strong-armed into a two-year archive of each action I take online under the guise of catching pedophiles, the companies I trust to free information are my enemies, the people looking out for me are being watched. As if that weren't enough, my own computer spies on me daily, my bank has been compromised, my phone is tapped--has been for years--and my phone company is A-OK with it. What's a guy that doesn't even consider himself paranoid to think of the current state of affairs?" The sad state of affairs is that Big Brother probably became a quiet part of our lives a lot earlier. The big question now is: how much worse can it get? Am I just accustomed to old ways? Does the new generation, born with these restrictions, feel the weight of these bonds and recoil from my fears as paranoia? What can I, a person with no political interests--a person that would really rather think that the people in office are there because they're looking out for us, our rights, and our freedoms and not because their short-sightedness is creating a police state--do to stem the tide?" -
NSA Had Domestic Call Monitoring Before 9/11?
MarkusQ writes "Bloomberg is reporting that, according to documents filed in the breach of privacy suit on behalf of Verizon and BellSouth, the NSA asked AT&T to set up its domestic call monitoring site seven months before the Sept. 11, 2001 attacks. Could it be that they were intending to monitor domestic calls (and internet traffic) all along, and the 'Global War on Terror' was just a convenient excuse when they got caught?" From the article: "...an unnamed former employee of the AT&T unit provided them with evidence that the NSA approached the carrier with the proposed plan. Afran said he has seen the worker's log book and independently confirmed the source's participation in the project. He declined to identify the employee." -
Intel To Slash Prices Up To 60%
Chuan-kai Lin writes "According to Bloomberg, Intel will slash product prices by up to 60% in order to regain market share captured by AMD." From the article: "Intel said it will reduce prices of faster dual-core chips by about 15 percent, according to Alex Lin, a product marketing manager at Micro-Star, Taiwan's third-largest maker of motherboards, which connect electronic parts in computers ... Shares of Intel have fallen 33 percent since Otellini succeeded Craig Barrett in May last year. Advanced Micro's stock has gained 77 percent during the same period. Intel fell 31 cents to $17.08 at 12:06 p.m. New York time in Nasdaq Stock Market composite trading. Advanced Micro dropped $1.55, or 5.5 percent, to $26.45 on concerns that Intel will lower prices." -
IBM Challenges Microsoft With an Ad Campaign
Rytis writes "IBM is about to spend $300 Million dollars on a campaign to win customers and to convert them from Microsoft Exchange to Lotus Notes and Domino under Linux. IBM is also said to offer resellers a bounty of $20,000 for switching customers to its Linux-based e-mail programs from Microsoft server software. It seems that the concurrence Microsoft Corp. is facing is getting tighter and tighter. The Penguin gets more and more support from the two biggest rivals that Microsoft have ever had." -
Alzheimer's Progresses Faster in Educated People
Nrbelex writes "Bloomberg news is reporting that 'High levels of education speeds up the progression of Alzheimer's disease, according to a study published in next month's issue of the Journal of Neurology, Neurosurgery and Psychiatry. Mental agility dropped every year among Alzheimer's disease patients with each additional year of education, leading to an additional 0.3 percent deterioration, the researchers from the Columbia University Medical Center in New York found. The speed of thought processes and memory were particularly affected.'" -
Slashback: Dry Mars, Wet Doc, Keyboard Teaser
Slashback tonight brings some corrections, clarifications, and updates to previous Slashdot stories, including a possible release date for the long awaited Optimus keyboard, yet another extension in the Blackberry court case, lakebed theory on Mars possibly all wet, US-CERT statistics perhaps not all they are cracked up to be, stem cell investigation reveals papers were faked, the FTC objects to the Netflix settlement, and a new Crossover Office fixes the WMF exploit among other things. Read on for details.Optimus keyboard may have a real release date? Jacket writes to tell us that the much talked about Optimus keyboard has a suggestive message on their website. With "Good things come in small packages February 1, 2006" could it be possible that this holy grail (for some) keyboard could be available in our near future?
Yet another delay for Blackberry court case. ahsile writes "TheGlobeandMail.com is reporting that 'NTP Inc., the company suing Research in Motion Ltd over the Blackberry e-mail service, wants more time to respond to the U.S. Patent and Trademark Office's preliminary rejections of its patents.'
Lakebed theory on Mars all wet? Sensible Clod writes "The Meridiani Planum region on Mars, long believed to have been covered with water millions of years ago, may not have been so wet after all, according to a new study from the University of Colorado at Boulder. From the article: 'The new study indicates chemical signatures in the bedrock, interpreted...as evidence for widespread, intermittent water at Mars' surface, may have instead been created by the reaction of sulfur-bearing steam vapors moving up through volcanic ash deposits. Known as Meridiani Planum, the region may have been more geologically similar to volcanic regions in parts of North America, Hawaii or Europe.'"
US-CERT statistics not all they are cracked up to be? jtshaw writes "Tectonic has an interesting article about the latest US-CERT stats. The actual vulnerabilities for a hand full of OS's after wading through the data: Microsoft Windows - 44, Apple Mac OS X - 21, IBM AIX - 21, HP-UX - 15, SCO Unix - 9, Red Hat Linux - 7, Suse Linux - 12, Debian Linux - 10, Gentoo Linux - 5, FreeBSD - 13, NetBSD - 2. It appears to me that commercial unix systems and open source *nix systems did pretty well compared to Windows on the vulnerability front."
Stem cell papers, confirmed fakes. An anonymous reader writes "The committee created to investigate stem cell researcher Hwang Woo Suk has confirmed that his first and second papers were faked. 'dashing hopes that his work is a breakthrough in treatments for diabetes and Parkinson's disease. [...] The panel backed Hwang's claim that he cloned the world's first dog.'"
FTC objects to Netflix settlement. AtariDatacenter writes "Although some question the validity of a recent lawsuit against Netflix, many users were up in arms about the terms of the settlement, which seemed like more of a marketing gimmick. Today, we learned that The Federal Trade Commission agreed, and asked the judge to reject the terms of the settlement."
New Crossover Office fixes,among other things, WMF exploit. ubuntuincleelum writes "Just on the heels of the announcement of new WMF security vulnerabilities Codeweavers is releasing Crossover Office 5.0.1. A bugfix release, this release features a fix for the original WMF bug. Among the changes in this release: Improved support for Gnome, improvements in Debian packaging and improvements in general for operability on Debian and Debian Derivatives."
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Intel's New Slogan Clarified
OctoberSky writes "We already knew that Intel was changing its slogan. The new tagline will be 'Leap Ahead', replacing the 10 year old 'Intel Inside'. The move was initially reported here on Slashdot yesterday. The official announcement includes the slogan's replacement." From the article: "Intel shares, up 7.2 percent this year, fell 37 cents to $25.07 yesterday in Nasdaq Stock Market composite trading. The change in Intel's brand is the first step in a $2.5 billion marketing campaign, BusinessWeek reported earlier, without making clear where it got the information. Intel spokesman Bill Calder declined to comment on the number. " -
Free P2P In France?
cyberbian writes to tell us that earlier in the week the French Parliament voted to allow free sharing of music and movies on the Internet. This ruling puts them in direct conflict with both the Media companies and the rest of the French government. From the article: " If the amendment survives, France would be the first country to legalize so called peer-to-peer downloading, said Jean-Baptiste Soufron, legal counsel to the Association of Audionautes, a French group that defends people accused of improperly sharing music files. The law would be a blow to media companies that increasingly use the courts worldwide to sue people for downloading or sharing music and movie files. Entertainment companies such as Walt Disney Co., Viacom Inc. and News Corp.'s Fox say free downloading of unauthorized copies of TV shows and movies before they are released on DVD will cost them $5 billion in revenue this year." -
France to Legalize File Sharing
quenting writes "In the debate around the anti-piracy bill, the French Parliament voted yesterday into law an amendment to the DADVSI bill that allows free sharing of music and movies over the internet, considering the downloaded files as a private copy. This decision goes against the French government and the music industry's recommendations, who argue the deputies only wanted to show their independence from the government. The initial bill's detractors who pushed for this amendment want a tax for author rights to be paid by everyone on the ISP fees." The French government has vowed to fight this decision (babelfish link). -
Another NTP Patent Invalidated
darkmeridian writes "Bloomberg reports that the PTO has granted a non-final rejection of a third NTP patent asserted against Research in Motion in the Blackberry litigation. Five patents have been asserted against RIM, and only one of the three rejected has been found to be valid and infringed. Yet this development helps RIM as it seeks to avoid an injunction against operation of the Blackberry network pending appeal." -
iPod Video Coming to a Car Near You
_am99_ writes "In the "one more thing" media event today, an iPod that can play Video was announced. The initial content seems to be music videos that can be purchased from the iTunes Music Store." In related news aquachannel writes "Apple has just updated their iPodYourCar page to include a slew of new car companies. This means that there'll be a lot of cars that you can buy off the showroom floor and use your iPod with your car - right off the floor and out of the box." -
Microsoft to Buy Stake in AOL
NetDanzr writes "According to various sources (Bloomberg, Reuters, CNet), Microsoft is in talks with Time Warner to buy a stake in AOL. While the size of the stake or its prize has not been disclosed yet, Bloomberg speculates that this deal would profit both companies. Microsoft would profit from merging the AOL portal with MSN, as a strategy to catch up with his rivals in this space Yahoo and Google, while Time Warner would gain some ammunition in its fight with a renegade shareholder, Carl Icahn. According to CNBC, AOL is just about to turn the corner and is currently the most undervalued division of Time Warner." -
Ebay Rumored to be Buying Skype
JDStone writes "Rumor has it that trusted sources from The Wall Street Journal say Ebay is interested in buying Skype. Later after the announcment, Ebay Inc. shares fell 4.3 percent." -
Baidu Sued for Piracy on Eve of IPO
sentanta writes "With an IPO set for Thursday, Baidu.com 'the Chinese Google' was hit with a lawsuit alleging piracy by the makers of The House Of Flying Daggers. The search engine currently has the largest market share in China (Google also owns about 3% of the company), and it is looking to raise ~$100mm from its IPO. This might become the first high profile test of an anti-piracy law passed by China last December, which punishes offenders with up to 7 years in prison." -
Supreme Court Allows Direct Shipment of Wine
jrrl writes "For a while now, ordering wine (of the alcoholic variety, not the almost 0.9 variety) online has been a somewhat dicey proposition in some states. But today, the Supreme Court overturned state laws that disallowed direct shipment of wine from out of state. Their reasoning is that the states' 'authority to regulate the sale of alcohol within their borders' under the 21st Amendment does not supersede 'the Constitution's ban on state discrimination against interstate commerce.' States could still disallow all direct shipments, but at least they have to be evenhanded now." -
LexisNexis Breach Worse Than Believed
Rollie Hawk writes "Worldwide law and news sifter LexisNexis has some bad news of its own this time. Actually, "bad" might sharply understate the situation. More than a month after disclosing information on a database breach that led to 32,000 customer IDs being stolen, the results of an internal review showed that in fact the damage was nearly ten times worse than previously thought. LexisNexis is already "offering free support services, including credit bureau reports, credit monitoring for one year and fraud insurance" to the nearly 300,000 additional victims it will soon be contacting, according to a Reed Elsevier statement to the Regulatory News Service. So far, no identity thefts have been reported by earlier victims, at least some of whom had private information such as addresses and Social Security numbers unwittingly divulged." -
Eidos Buyout Offer Results in Competing Bids
Pluvius writes "Eidos, the UK-based publisher of such well-known franchises as Tomb Raider, Deus Ex, and Hitman, is the subject of competing buyout bids after announcing in August its plans to put itself up for sale after lower-than-expected earnings. Though rumors abounded that Rupert Murdoch's News Corp was interested in such a deal, it turns out that the two main rivals in this buyout are SCi Entertainment, publisher of an assortment of games including Conflict: Desert Storm, and Elevation Partners, a US venture group containing such diverse figures as former EA president John Riccitiello and U2 lead singer Bono. SCi currently has the upper hand, with a 74.1 million pound offer (as well as the support of Eidos' biggest shareholder) beating out Elevation's 71 million pounds. It might not be News Corp, but it's still interesting." -
The State of the Open Source Union, 2004
Mark Stone writes with a thoughtful look back at the year 2004 in open source, pointing out both major gains and inevitable uncertainties. He writes "2004 stands out as a year in which open source consolidated its position as a valuable and accepted approach to business and technology policy. A less obvious but significant trend underlies all of this: even as open source business models join the mainstream, the open source development model remains a mysterious process on which large technology companies struggle to capitalize. Key issues and developments have played out in four areas: legal, policy, business, and technology." Read on for the rest. LegalThe biggest non-story of the year was SCO's legal efforts. So far SCO has not been able to make substantial headway with a single one of its legal claims, and indeed has suffered a number of significant setbacks in court.
This is certainly good news for Linux and open source. Going back five or six years, clearly one of the major obstacles to widespread adoption of open source software was the uncertain legal status of both the software and the licenses. While this aspect of open source is still an unfinished saga -- more on that shortly -- the inability of SCO, through either legal or PR channels, to undermine Linux gives reason for confidence about the future.
The real story about SCO in 2004 has in fact been the telling of that story. While mainstream media coverage of SCO has varied widely -- sometimes accurate, sometimes resembling coverage of the OJ Simpson trial -- Groklaw has emerged as a steady voice of reason and objectivity adeptly defusing all attempts at "FUD" PR around the case.
2004 has been, especially as an election year, a controversial year for the phenomenon of blogging. Whether blogging will provide a sustainable alternate voice in journalism is very much an open question. A few blog sites, however, have shown what a handful of dedicated individuals can do in the face of much larger, and better funded PR machines. Groklaw is an outstanding example of the positive journalism effect that blogging can have.
The legal front brought other good news for the open source community. Norway's Supreme Court acquitted Jon Johansen, and the Norwegian Economic Crime Unit opted not to appeal the decision. In the United States the Digital Millenium Copyright Act still remains the law of the land, but the Recording Industry Association of America has made little progress in forcing ISPs to disclose the identities of alleged file swappers.
A more troubling legal trend is the shift in debate about the intellectual property status of open source software. The principles behind the "copyleft" approach have gained continued acceptance, and have even been leveraged as an integral part of some business models. The debate now, however, centers more around patents that copyright.
IBM has been out in front of the patent issue. Their open source license was the first to explicitly address patent licensing as an issue above and beyond copyright, and they've taken steps, even recent steps, to see that open source development is unencumbered by patent concerns. IBM is not the only company putting patents in the open source domain. Sun Microsystems recently announced they will make patents available under their recently approved Common Development and Distribution open source license (CDDL).
All of this would seem to be good news for the open source community, especially given that Poland's objections have put a temporary halt to the Europan Union software patent initiative. Appearances can be deceiving, however. IBM is a supporter of software patents. Sun's gesture is in fact intended to create a competitive advantage for OpenSolaris over Linux, since the patent protection Sun offers applies only to work licensed under the CDDL -- in other words, not Linux. In a recent News.com commentary, Bruce Parens said, "So while claiming to make the patents available to open-source developers, Sun can sue folks who work on Linux rather than Solaris."
The biggest patent concern comes from Microsoft. In a speech in Australia, Microsoft CEO Steve Ballmer claimed that Linux violated more than 200 patents. While this may be more hype -- or hope -- than fact, it does tip Microsoft's hand in terms of what tactics they are willing to use to meet the Linux competitive threat.
PolicyAll other things being equal, customers prefer an open system to a closed one, and vendor choice over vendor lock-in. In the IT world in general, and between Windows and Linux in particular, all other things are not equal, which makes platform choice complicated. More and more, however, organizations are seeing Linux as a viable platform choice that
- Lowers up-front licensing fees
- Has the support and backing of significant technology vendors, whether small, medium (Red Hat), or large (IBM, Novell)
- Avoids vendor lock-in at both the platform and application level
These claims are independent of the more controversial claims about improving security and lowering total cost of ownership. 2004 has added an interesting additional element to the mix: the desire of government organizations outside the United States to not be dependent on a large, American technology company whose revenues exceed the gross national product of most nations.
This software declaration of independence has taken several forms. Sometimes it seems simply to be a negotiating tactic to force Microsoft to lower prices. India may be an example.
Sometimes, however, price is not the issue. Munich, for example, committed to making the switch to Linux despite direct lobbying efforts by Microsoft CEO Steve Ballmer. In the case of a high tech country like Germany, this decision is probably influenced by the reluctance to be dependent on an American company guilty of monopoly practices.
The situation in the developing world is somewhat different. Unshackled by significant requirements of backward compatibility, emerging economies like Venezuela's have a chance to make a clean start and avoid what they perceive as the pitfalls and inefficiencies in older IT infrastructures.
The policy approach in China is even more alarming to traditional technology vendors. China clearly does not want to build an economy dependent on outside production or services, whether it's factories or satellite launches. In the software world China has made it clear that it can and will build its own platform and application stack leveraging open source components, if that is what it has to do to maintain control of its software destiny.
BusinessThe North American market for computer technology has, in many ways, reached the saturation point. A Pentium 4, to say nothing of a 64-bit processor, is already overkill for most office desktop applications. Older versions of the Microsoft Office suite, and older versions of Microsoft Windows, are often quite adequate for business productivity needs. The problem for traditional technology vendors is aggravated by the fact that Linux, Open Office, and other open source software may now be good enough.
On the one hand this accounts for why policy issues and the international technology market have become so important: this is where technology vendors see the biggest opportunity to grow new business. On the other hand, open source is forcing some significant changes in the software market domestically.
The most visible effect of open source has been the commoditization effect. Microsoft, as we've seen, has been forced to acknowledge the competitive impact Linux is having, and to cut prices overseas in response to this competition. Yet even companies like BEA acknowledge that open source will have an increasing commoditizing effect, meaning that they will cede lower levels of the application stack to freely available open source software and seek to add value further up the stack.
The most dramatic concession to commoditization in 2004 has been the announcement that Sun is open sourcing Solaris. Said one Sun executive who asked to remain anonymous, "Do you think we'd be open sourcing Solaris if we had any other way to compete with Linux on price? Of course not."
If anything, the opening of Solaris reinforces that Sun has been unable to find a business model built around Linux. Given that competitors like IBM and HP have, with varying degrees of success, been able to integrate Linux into their business models, one suspects that there are deeper problems at Sun than the opening of Solaris can solve.
The bottom line is that Sun is still trying to compete with, rather than embrace Linux. The CDDL doesn't extend patent protection to anyone working under a different open source License, and the CDDL is incompatible with the GPL, meaning none of the Solaris code can be used to benefit Linux.
This move, of using a license as a competitive tool, is one of the more subtle but more important business trends to emerge from open source in 2004.
The most common approach is a dual-licensing scheme, utilized by Trolltech (for Qt), Sleepycat (for Berkeley DB), MySQL, and newcomer db4objects, among others.
In each case the company makes its core product available under the GPL, or else under a similar viral-type license. Since each of these software products is intended to be embedded within or combined with other software to create a derivative product, companies are forced to make their own product available as open source, or to approach the originating company about separate licensing under proprietary terms.
The result is a very low-cost distribution mechanism for the open source companies, as well as a cheap in-bound sales channel of pre-qualified leads.
Of course, to be able to dual-license, you must have created all the code in question, or have full rights granted to you for all the code in question. Thus this very successful open source business model is incompatible with the open source development model; each of the companies using the dual-license approach does all, or nearly all of their software development in-house.
TechnologyWhat then of the open source development model? Has it enjoyed the growth and widespread acceptance that open source business models have?
Certainly 2004 saw a number of significant releases for open source projects. GIMP 2.0 was finally released, as was Gnome 2.6. Large companies as well as individual projects made strides. IBM announced the release of its Java database, Cloudscape, as open source. Novell released SUSE Enterprise Server 9.
The year's most significant releases were the 2.6 series of Linux kernels, and the 1.0 release of Mono. With 2.6, Linux now has many of the features needed to compete as an enterprise-class server: better multiprocessor support, failover and hot-swap support, better journaling file system support.
Mono is absolutely critical if the open source community is to compete in the application development market. C# and .Net will be important application building blocks for the forseeable future, and Linux and open source need to be viable approaches.
The Debian Project has undergone an interesting evolution in the last year. Long-time Debian users have often complained about the slow pace at which Debian moves, favoring security and stability over feature growth. The result is a very solid server system, but one that, for the end user, often lacks support for advanced hardware.
The solution, which seems so obvious now, is independent distributions that leverage Debian as a base but target the end user with ease-of-use features and hardware-support features that have yet to make it into Debian. Two successful projects heading down this path are Ubuntu, which follows the Gnome approach to usability, and Mepis, which follows the KDE approach to usability. Either distribution will give you an easy install, access to Debian packages and apt-based network updates, but with more advanced hardware support and an improved UI over stock Debian.
By far the biggest development story of the year, however, has been Firefox, the browser component of the Mozilla project.
Timing is everything. Security, privacy, and spyware have become major concerns in 2004. Microsoft has refused to significantly update Internet Explorer (IE) until Longhorn is released, which could be in 2006 (as in "Santa Claus could be real"). The Mozilla Foundation capitalized on this opportunity with a major fundraising blitz for the foundation and PR blitz around Firefox; this included a full-page New York Times ad.
In November, Firefox 1.0 was released, and to date downloads exceed 10 million. Mozilla has raised over $250,000 in its fundraising campaign. While IE's market share still hovers around 90%, Firefox has rapidly grown to 5% market share, and put a dent in IE's market share for the first time in years. Industry analyst Gartner Group has looked at the results of 2004 and declared the browser war open again.
Looking ahead to 2005, it's interesting to ponder the tech sector's differing response to open source business and open source development models. The business models are reasonably well understood and generally accepted now. Not everyone is leveraging open source as a business play, but everyone understands it is one viable strategy to pursue.
On the development side, however, the results of open source continue to confound the establishment. Why did no one see the Firefox phenomenon coming? Equally important, why isn't anyone (AOL) attempting to leverage Firefox's market success and technology advantages?
With Solaris, it's interesting to note that even supporters of OpenSolaris admit it sees no real development savings to opening Solaris; the benefits are all on the marketing side. Ben Rockwood blogs "It's going to take Sun more work to maintain it open source than it will to just leave it closed."
Yes, open source has become mainstream. But that mainstream presence needs to be more than a commodity benefit to companies willing to leverage the results of open source. Will mainstream technology companies figure out how to anticipate and collaborate with open source development as a deep part of their technology strategy? That's a big question that 2005 may answer.
Mark Stone is an open source consultant and freelance writer living in the Sierra Nevada region of Northern California. He can be reached at mark.stone@gmail.com. -
HP CEO Carly Fiorina to Step Down
ewwhite was the first of a tidal wave of readers to submit links telling us that HP Chairwoman and Chief Executive Officer Carly Fiorina will step down, effective immediately. Chief Financial Officer Robert Wayman will be interim CEO, Hewlett-Packard said in a Business Wire statement today. Patricia Dunn will be chairwoman. Not much else in the story. -
Fallout From Japanese Patent On Help Icon
MeridianOnTheLake writes "The Tokyo District Court has ordered the destruction of Ichitaro, a software product that is the only serious competitor in Japan to Microsoft Word, and has been on sale since 1985. The ruling is based on the claim of a competitor, Matsushita, that the use of a help icon to invoke a help function infinges on one of their patents. "We are a global enterprise and we are just following international practice to enforce our IP rights," Kitadeya (Matsushita) said." Here's more on the story, as covered by Bloomberg and The Japan Times. -
Canada to Give Ubisoft Grants
The Canadian and Quebecois governments have announced millions of dollars in grants and tax subsidies for the Montreal studio of French developer Ubisoft. Bloomberg has the news that these monies will be given to the studio over the course of several years. From the article: "Paris-based Ubisoft plans to hire programmers, game designers and computer animation specialists in the city over the next five years.." -
Airbus Launches 800 Passenger Jumbo Jet
voma writes "Airbus, the world's largest planemaker, will unveil its A380, a $16 billion wager that airlines will order giant aircraft to ferry passengers between major airports over the next 20 years. The double-decker A380 plane has a wing span of 80 meters (262 feet), almost the length of an American football field. It's 73 meters long and weighs as much as 569 tons (1.2 million pounds) when fully loaded for takeoff. It will have a range of 8,000 nautical miles." -
Microsoft EU Monopoly Appeal Thrown Out
smnicoll writes "The European Court of First Instance has thrown out Microsoft's appeal to have penalties for the abuse of monopoly suspended, reports BBC News Online. 'Microsoft's application for interim measures is therefore dismissed in its entirety,' The court's statement said. 'The evidence adduced by Microsoft is not sufficient to show that implementation of the remedies imposed by the Commission might cause serious and irreparable damage.' The commission's case is mainly focused on Microsoft's integration of Windows Media Player into the operationg system and the effects that has on the ability of Real Networks and Apple to get their rival players used." Similar stories at Bloomberg, CNET, and Reuters (via CNN). -
FEC May Regulate Online Political Activity
jgarzik writes "A recent federal court ruling ordered the U.S. Federal Elections Commission (FEC) to rewrite rules that currently exempt, rather than regulate, political ads and speech on the Internet. Well, it's looking more and more likely that the FEC will not be able to avoid some amount of Internet regulation. I always thought that freedom of speech originated in part because the framers wanted to protect political speech. I guess I was being naive..." -
Mexican Attorney General Gets Microchip in Arm
novakreo writes "Rafael Macedo de la Concha, Mexico's Attorney-General, now has a non-removable microchip in his arm, to track his movements and to give him access to a new crime database, according to Bloomberg. The article says that eventually around 160 Mexican officials will have a chip implanted." (Wired and CNN are both running the very similar Reuters report, too.) -
PSP Launch May Be Hurt By Lack Of Games?
Thanks to Bloomberg for its article discussing a seeming lack of development kits for Sony's forthcoming PSP handheld, and the logical possibility the system "may be hampered by a lack of new games" when the handheld "goes on sale in Japan before yearend." According to the news article: "Sony has yet to send the final development kits for PlayStation Portable to any of its outside game publishers, said Yoshiko Furusawa, a spokeswoman with Sony Computer Entertainment in Tokyo. Sony had already sent the final kits to publishers for its best-selling PlayStation 2 home video-game console at a similar stage before its debut in March 2000, Furusawa said." Hirofumi Otsuki of Sega added: "We don't know if we'll meet Sony's schedule... PlayStation Portable details still seem to be in development." -
Sony Delays PSX To 2005 In U.S.
Thanks to Bloomberg.com for its story revealing Sony is delaying the American release of its PSX PlayStation 2/digital video recorder combo device until 2005, allegedly "because the device may not appeal to U.S. consumers", according to the article. Dick Komiyama, although not explicitly stating these worries, said: "We're working very hard to make the technology feasible for U.S. consumers", and analyst Masayuki Ito argued: "'Delays give a bad impression... Investors probably didn't have high expectations for the product' because it has had little appeal in Japan." We recently discussed the debut of an enhanced PSX in Japan, as well as earlier issues with last year's Japanese launch. -
Microsoft Plans More Japan-Specific Xbox 2 Games
Thanks to Bloomberg.com for its report discussing Microsoft's plans to recruit local developers to help the Xbox 2 succeed in Japan. Norman Cheuk of Microsoft Japan indicates: "A lot of what we're doing today is to position ourselves. We're looking at the future generations where we'd like to be successful", though efforts to encourage more Japanese Xbox exclusives (following on from Tecmo's Dead Or Alive 3/Dead Or Alive Ultimate) have recently been stymied: "Capcom Co., Japan's third-biggest game maker, has turned down offers from Microsoft in recent months to help pay distribution and development costs in return for more exclusive games for the Xbox, said Kazuhiko Abe, head of Capcom's corporate strategy division, without giving details." Abe also stated Capcom "isn't interested in developing more" Xbox titles, simply saying: "There are no plans... It's just not profitable enough." -
What Might Have Been: Microsoft Almost Bought SAP
steveorama writes "This article from Bloomberg indicates that 'Microsoft Corp, the world's largest software maker, approached late last year about buying the German company, a combination that would have vaulted it to the biggest seller of software for business applications.'" The talks came out in advance of likely disclosure in the ongoing merger battle involving Oracle, PeopleSoft and the U.S. Department of Justice. An anonymous reader points to this article in the Financial Times, adding "Microsoft says the discussions were halted due to the complexity involved in the transaction and in integrating the two companies. A merger with SAP would be a profound break with previous Microsoft strategy, and would likely have raised eyebrows among regulators." -
MS Sales Growth Limited by Delays in Windows
Alien54 writes "As reported by Bloomberg, Microsoft Corp.'s sales growth will probably drop below 10 percent next fiscal year for the first time because delays in the next version of Windows have created the longest-ever lag between releases of the software. They go into some detail on how the lack of new products also hurts multiyear subscriptions, because clients that buy the contracts expecting to get product upgrades may not renew if new items won't be available for a while. Didn't someone say once that they have enough reserves to last 5 years without any sales at all?" -
IFPI 'First Wave' Sues 247 In Europe & Canada
securitas writes "AP and many others report that the International Federation of the Phonographic Industry - IFPI - has sued 247 accused file-sharers in Germany, Denmark, Italy and Canada as part of an unprecedented, coordinated attack. The IFPI represents the global recording industry through its members - national associations like the IFPIG, DRIA, FIMI, CRIA and RIAA - and says it will launch more international lawsuits in the months ahead. You may also want to read the official IFPI 'first wave' press release/related documents and a statement by the IFPI's chairman and CEO. Lots of coverage at AP/AJC, USA Today, the New York Times, Reuters/CNN Money, ZDNet/CNet, Bloomberg , netimperative and the BBC. The timing of the international legal attacks is especially interesting in light of the recent study that indicates file-sharing has a negligible impact on music sales." -
Kodak Sues Sony Over Digital Camera Patents
KenC writes "Kodak has filed a lawsuit against Sony alleging that 10 of its patents have been used without permission. Included among the patents as reported via Reuters is electronic camera utilizing image compression and digital storage . Kodak claim the patents involved were issued between 1987 and 2003. More from Bloomberg." As reader Nekura2025 asks "Um, doesn't that apply to all digital cameras?" -
Japanese Government Raids Microsoft Offices
Nakito writes "According to an article at the financial news site Bloomberg, Microsoft's Tokyo office was raided by Japan's Fair Trade Commission, which is investigating whether the world's largest software maker violated the country's anti-monopoly law." Other readers note a AP/Yahoo story claiming: "A commission official, speaking on customary condition of anonymity, said Microsoft Japan is suspected of attaching improper restrictive conditions when signing software deals with Japanese personal computer manufacturers, such as requiring that Japanese companies allow infringement of their patents." -
US Army Scraps Comanche Helicopter
swordboy writes "The US Army just scrapped the Comanche helicopter program - a joint venture with Boeing and United Technologies. After 20 years and billions of taxpayer dollars, it never produced an operational helicopter. Open-source helicopter, anyone?" The article notes: "The Comanche is designed to receive and process intelligence from drones and surveillance aircraft and pass it to ground units. The Army was directed in 2002 to focus its research on producing a reconnaissance helicopter rather than one that can attack as well as scout. The helicopter was intended to counter Soviet weapons." -
Google Chooses An Underwriter For Upcoming IPO
PenguinSix writes "Bloomberg and a bunch of others are reporting that Google has hired Morgan Stanley and Goldman Sachs Group Inc. to arrange its initial public offering. This follows literally years of rumors and stories about a Google IPO. About a third of Mountain View, California-based Google may be sold in the IPO, giving the company a market value of about $12 billion, the bankers said." Google has become so invaluable to many people (like me) that they could probably raise just as much money with a blackmail scheme. -
Nintendo To Launch New Machine Next Year?
EvilDonut writes "According to Bloomberg.com, Nintendo intends to launch a new machine in Japan next year, in order "to boost sales". There are no details as to wether the machine will be hand-held or not, but Bloomberg does describe it as a next-generation console. This is pretty odd, as Nintendo has previously stated that the GameCube successor wouldn't be out until 2005, and the GBA is doing so well that I can't imagine they'll replace it as early as next year. The article also mentions the Nintendo iQue, so it's pretty clear this is not just a mix-up regarding the new, China-only system." Update: 11/13 23:44 GMT by S : GameSpot has a very cryptic clarification from Nintendo, that "the new product will be a unique item that is different from any traditional machine", and will be "be [neither] a home console nor a portable machine." -
Nintendo To Launch New Machine Next Year?
EvilDonut writes "According to Bloomberg.com, Nintendo intends to launch a new machine in Japan next year, in order "to boost sales". There are no details as to wether the machine will be hand-held or not, but Bloomberg does describe it as a next-generation console. This is pretty odd, as Nintendo has previously stated that the GameCube successor wouldn't be out until 2005, and the GBA is doing so well that I can't imagine they'll replace it as early as next year. The article also mentions the Nintendo iQue, so it's pretty clear this is not just a mix-up regarding the new, China-only system." Update: 11/13 23:44 GMT by S : GameSpot has a very cryptic clarification from Nintendo, that "the new product will be a unique item that is different from any traditional machine", and will be "be [neither] a home console nor a portable machine." -
Nintendo Creates Piracy-Proof Console For China
Thanks to Bloomberg for their story discussing Nintendo's announcement of a new console for China, apparently based on N64 technology. According to the article, "Nintendo will sell the console, called the 'iQue player' for 498 yuan ($60)... To prevent copying... users will download software onto a 64-megabyte flash-memory card at a local [retail] store, paying 48 yuan for each title" - a little like the Lawson partnership Nintendo had in Japan? The piece goes on to explain: "Nintendo will sell Chinese-language versions of software originally designed for the company's older-generation game players such as Nintendo 64." -
NEC to Introduce 3D Laptop Next Year?
Hoon Mihn Fao writes "For those of you for whom 2D laptops are not awesome enough, next year NEC is coming out with a 3D laptop. No, you don't have to wear those retro red and blue glasses, but the monitor is actually an LCD screen placed on top of a conventional monitor. The company is currently seeking gaming software companies to produce games for its technology. Each unit will cost an estimated $200 more than a conventional laptop." -
Pentagon Lets You Bid on Terrorism?
Elysdir writes "DARPA is creating an idea futures market, the Policy Analysis Market, to try to predict events in the Middle East. See Bloomberg article for more info." Read this article. I mean it. This is amazing. Update: 07/29 14:45 GMT by J : The NYT story claims "The White House also altered the Web site so that the potential events ... that were visible earlier in the day ... could no longer be seen," but those example images are still being served: Jordanian overthrow, bidding on assassinations, cool graphics... Update: 07/29 16:44 GMT by M : Looks like the publicity was too much.