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NEWS&ANALYSIS the buzz TECHNOLOGY NEC desktop: Cool and quiet NEC ANNOUNCED IN NEW York last week what it calls the world’s first water-cooled PC system—which also promises to be one of the quietest. The desktop PC’s water-cooling system uses liquid to cool off the CPU, enabling operating noise to be suppressed to about half that of a conventional PC that uses a cooling fan, or about 30 db, according to company officials. The machines, due this week, come in two models: the Valuestar TX server and the Valuestar FZ desktop. FINANCIALS PC group fuels HP’s second quarter HEWLETT-PACKARD EARNED $659 million on $18 billion in revenue for the second quarter, fueled in large part by its PC group and SCO’s implication of wider claims could turn Linux into an intellectualproperty minefield. 18 eWEEK n MAY 26, 2003 NEC’s desktop PC is the world’s first water-cooled system. printing division. The numbers represent a $100 million jump in revenue over the previous quarter. Chairman and CEO Carly Fiorina said the company’s focus is on building the business rather than absorbing Compaq Computer. “We still have a lot to do, but I feel confident that HP is no longer an integration story,” Fiorina said during a conference call with analysts and reporters. For the quarter ended April 30, HP’s Personal Systems Group— which includes such devices as desktop PCs and laptops—made $21 million in profit on $5.1 bil- QUOTE OF THE WEEK DOSI position paper on the SCO-vs.-IBM complaint lion in revenue. Fiorina said the gains made on the commercial side of the ledger were offset by seasonal weakness in the consumer business. BUSINESS Does IT matter anymore? A MAY HARVARD BUSINESS REVIEW article by Nicholas Carr claims that, due to technology commoditization, “IT doesn’t matter” as a strategic advantage. “By now, the core functions of IT—data storage, data processing and data transport—have become available and affordable to all,” the report said. Turning expenditures on technology into the costs of doing business is an evolution similar to that of the steam engine, the telegraph, the telephone and the internal combustion engine. Similarly, the report said, overinvestment in technology in the 1990s echoes overinvestment in railroads in the 1860s. The scary question is whether “people have already bought most of the stuff they want to own,” said Bill Joy, chief scientist and co-founder of Sun Microsystems, who was quoted in the article. Vendors that are evolving to survive in this commoditized environ- BY THE NUMBERS ment include Microsoft, which turned its Office software suite into an annual subscription service. That is a “tacit acknowledgement that companies are losing their need—and their appetite— for constant upgrades,” the report said. PEOPLE Oracle turns to Wall Street analyst ORACLE IS PLUGGING MORGAN Stanley analyst Charles Phillips into one of the company’s top positions, the company announced this month. Phillips will become executive vice president in the office of the CEO and will report directly to Chairman and CEO Larry Ellison. The analyst, who’s reported on the software industry for Morgan Stanley since 1994, will focus on customer-facing activities, partners, corporate strategy and business development, officials said. Phillips has been ranked the No. 1 enterprise software industry analyst by Institutional Investor magazine each year since 1994, Oracle officials said. He has also been recognized as one of the Top 50 black professionals on Wall Street by Black Enterprise Magazine. ´ RDBMS new-license revenue Worldwide revenue estimates for 2002 (in $ billions) $7.5 $6 $4.5 $3 $1.5 0 2.4% IBM Oracle Microsoft NCR Others 9.7% 14.3% 39.7% 33.9% 2001 REVENUE 2002 REVENUE Source: Gartner Dataquest (May 2003) 9.2% 18% 33.9% 36.2% 2.7%

NEWS&ANALYSIS SERVERS StarView remotely monitors systems STARTECH.COM THIS WEEK IS rolling out a tool designed to enable IT administrators to manage and monitor their servers remotely via the Internet. The company’s StarView IP2 enables BIOS-level remote control of a single server or multiple systems connected to a KVM switch over TCP/IP. Using the device, administrators can reset, reboot and control the servers through any Web browser. The StarView IP2 can support servers from most vendors, including Dell, Hewlett-Packard, IBM and Sun, and is compatible with most KVM switches, according to the company. The device will be available this week, priced starting at $999. —Jeffrey Burt INTERNET AOL 9.0 beta released AMERICA ONLINE LAST WEEK MADE its AOL 9.0 client available to beta testers. The software, code-named Blue Hawaii, is a marked departure from the last release, AOL 8.0, in offering a skinnable, or changeable, user interface codenamed Prescott. With it, AOL members will have many more opportunities to customize the navigation and design of the AOL client. AOL 9.0 also introduces a feature called QuickViews, which allows members to obtain information by rolling their mouse over a feature. —Craig Newell, ZDI 20 eWEEK n MAY 26, 2003 Nextel targets the enterprise PUSH-TO-TALK AND VPN SERVICES ON LINEUP By Carmen Nobel Nextel communications Inc. is taking several steps to strengthen its reputation as a company that caters to the enterprise. The Reston, Va., company is rolling out a nationwide version of its renowned Direct Connect push-to-talk service, offering new software based on technology from IBM, forging partnerships with enterprise application companies and launching new hardware throughout the year. “When used properly, it has the feel of a less disruptive phone call. I use it especially for quick questions or checking if someone is available.” The service has been credited for giving the company a higher average revenue per user—$67 last quarter— than its competitors. Other carriers have voiced vague plans to offer their own pushto-talk services, but Nextel officials shrugged off the idea that this might make Nextel lower its prices. “We don’t think so,” said Greg Santoro, vice president The StarView IP2 manages servers. Direct Connect, which lets Nextel’s direct a phone work like a walkietalkie, is currently available only within a customer’s local calling area. But that will change this summer. A longdistance Direct Connect service is in beta tests in Boston, Southern California and Florida. It will be widely available in those areas by next month, with service available to more than half of Nextel’s coverage area by July and throughout the United States by August, officials said. Nextel plans to offer two pricing options for Nationwide Direct Connect: an unlimited plan for $10 per month or a pay-as-you-go plan for 10 cents a minute. The scanner attachment will cost $249. Mobile workers say a direct connection is simply less of a hassle than a phone call on both ends. “For certain types of communication, push to talk is particularly useful,” said Christopher Bell, chief technology officer at the People- 2People Group, in Boston. enterprise connection � Launching Nationwide Direct Connect service this summer � Offering a mobile VPN service that uses IBM’s WebSphere Everyplace Connection Manager � Selling a bar-code scanner attachment from Symbol for Nextel phones of Internet and Wireless Services at Nextel. “We don’t think [competitors] can create a service that meets ours.” In the meantime, Nextel last week announced a new VPN (virtual private network) service based on IBM’s Web- Sphere Everyplace Connection Manager software. The VPN compresses data up to three times faster than previous solutions, Nextel officials said, and uses several encryption standards, including Data Encryption Standard, Triple DES, RC5 and Advanced Encryption Standard. “It finally brings together encryption and compression,” Santoro said. “It was either/or up until now.” He added that Nextel is working with several companies that specialize in corporate data applications, especially for creating software designed to run on the Black- Berry 6510, an e-mail/phone/ walkie-talkie device that Research In Motion Ltd. created for Nextel’s network. “We’re getting traction with people who never thought about using a BlackBerry before,” especially in vertical markets, Santoro said. To that end, Nextel this month began selling a barcode scanner attachment for its i88s and i58sr phones. Symbol Technologies Inc.’s PSM20i scanner clips on to the end of the phone. It weighs 1.4 ounces. Users scan the bar codes by pressing the Direct Connect button on the side of the phone and then use a Java-based application to send the information out over the iDEN, or Integrated Digital Enhanced Network. The scanner requires third-party software from a company such as AirClic Inc. to work properly, officials said. One device Nextel may not be offering in the near future is a phone that offers voice over IP via 802.11 wireless LANs. Although company officials said earlier this year Nextel and Motorola Inc. are testing such a product, Santoro said that the companies test many things and that Nextel has yet to commit to a Wi-Fi phone. ´

NEWS&ANALYSIS<br />

SERVERS<br />

StarView remotely<br />

monitors systems<br />

STARTECH.COM THIS WEEK IS<br />

rolling out a tool designed to<br />

enable IT administrators to manage<br />

and monitor their servers<br />

remotely via the Internet.<br />

The company’s StarView IP2<br />

enables BIOS-level remote control<br />

of a single server or multiple<br />

systems connected to a<br />

KVM switch over TCP/IP. Using<br />

the device, administrators can<br />

reset, reboot and control the<br />

servers through any Web<br />

browser.<br />

The StarView IP2 can support<br />

servers from most vendors,<br />

including Dell, Hewlett-Packard,<br />

IBM and Sun, and is compatible<br />

with most KVM switches,<br />

according to the company.<br />

The device will be available<br />

this week, priced starting at<br />

$999. —Jeffrey Burt<br />

INTERNET<br />

AOL 9.0 beta released<br />

AMERICA ONLINE LAST WEEK MADE<br />

its AOL 9.0 client available to<br />

beta testers.<br />

The software, code-named<br />

Blue Hawaii, is a marked departure<br />

from the last release, AOL<br />

8.0, in offering a skinnable, or<br />

changeable, user interface codenamed<br />

Prescott. With it, AOL<br />

members will have many more<br />

opportunities to customize the<br />

navigation and design of the AOL<br />

client.<br />

AOL 9.0 also introduces a<br />

feature called QuickViews,<br />

which allows members to<br />

obtain information by rolling<br />

their mouse over a feature.<br />

—Craig Newell, ZDI<br />

20 eWEEK n MAY 26, 2003<br />

Nextel targets the enterprise<br />

PUSH-TO-TALK AND VPN<br />

SERVICES ON LINEUP<br />

By Carmen Nobel<br />

Nextel communications<br />

Inc. is taking several<br />

steps to strengthen its<br />

reputation as a company<br />

that caters to the enterprise.<br />

The Reston, Va., company<br />

is rolling out a nationwide version<br />

of its renowned Direct<br />

Connect push-to-talk service,<br />

offering new software based<br />

on technology from IBM, forging<br />

partnerships with enterprise<br />

application companies<br />

and launching new hardware<br />

throughout the year.<br />

“When used properly, it has<br />

the feel of a less disruptive<br />

phone call. I use it especially<br />

for quick questions or checking<br />

if someone is available.”<br />

The service has been credited<br />

for giving the company<br />

a higher average revenue<br />

per user—$67 last quarter—<br />

than its competitors. Other<br />

carriers have voiced vague<br />

plans to offer their own pushto-talk<br />

services, but Nextel<br />

officials shrugged off the idea<br />

that this might make Nextel<br />

lower its prices.<br />

“We don’t think so,” said<br />

Greg Santoro, vice president<br />

The StarView IP2 manages servers. Direct Connect, which lets Nextel’s direct<br />

a phone work like a walkietalkie,<br />

is currently available<br />

only within a customer’s local<br />

calling area. But that will<br />

change this summer. A longdistance<br />

Direct Connect service<br />

is in beta tests in Boston,<br />

Southern California and<br />

Florida. It will be widely available<br />

in those areas by next<br />

month, with service available<br />

to more than half of Nextel’s<br />

coverage area by July and<br />

throughout the United States<br />

by August, officials said.<br />

Nextel plans to offer two<br />

pricing options for Nationwide<br />

Direct Connect: an<br />

unlimited plan for $10 per<br />

month or a pay-as-you-go plan<br />

for 10 cents a minute.<br />

The scanner attachment<br />

will cost $249.<br />

Mobile workers say a direct<br />

connection is simply less of a<br />

hassle than a phone call on<br />

both ends.<br />

“For certain types of communication,<br />

push to talk is<br />

particularly useful,” said<br />

Christopher Bell, chief technology<br />

officer at the People-<br />

2People Group, in Boston.<br />

enterprise connection<br />

� Launching Nationwide Direct<br />

Connect service this summer<br />

� Offering a mobile VPN service<br />

that uses IBM’s WebSphere<br />

Everyplace Connection Manager<br />

� Selling a bar-code scanner<br />

attachment from Symbol for Nextel<br />

phones<br />

of Internet and Wireless<br />

Services at Nextel. “We don’t<br />

think [competitors] can create<br />

a service that meets ours.”<br />

In the meantime, Nextel<br />

last week announced a new<br />

VPN (virtual private network)<br />

service based on IBM’s Web-<br />

Sphere Everyplace Connection<br />

Manager software. The VPN<br />

compresses data up to three<br />

times faster than previous<br />

solutions, Nextel officials said,<br />

and uses several encryption<br />

standards, including Data<br />

Encryption Standard, Triple<br />

DES, RC5 and Advanced<br />

Encryption Standard.<br />

“It finally brings together<br />

encryption and compression,”<br />

Santoro said. “It was<br />

either/or up until now.”<br />

He added that Nextel is<br />

working with several companies<br />

that specialize in corporate<br />

data applications, especially<br />

for creating software<br />

designed to run on the Black-<br />

Berry 6510, an e-mail/phone/<br />

walkie-talkie device that<br />

Research In Motion Ltd. created<br />

for Nextel’s network.<br />

“We’re getting traction with<br />

people who never thought<br />

about using a BlackBerry<br />

before,” especially in vertical<br />

markets, Santoro said.<br />

To that end, Nextel this<br />

month began selling a barcode<br />

scanner attachment<br />

for its i88s and<br />

i58sr phones.<br />

Symbol Technologies<br />

Inc.’s PSM20i<br />

scanner clips on to the<br />

end of the phone. It<br />

weighs 1.4 ounces.<br />

Users scan the bar<br />

codes by pressing the<br />

Direct Connect button<br />

on the side of the<br />

phone and then use<br />

a Java-based application<br />

to send the information<br />

out over the iDEN, or<br />

Integrated Digital Enhanced<br />

Network.<br />

The scanner requires<br />

third-party software from a<br />

company such as AirClic Inc.<br />

to work properly, officials<br />

said.<br />

One device Nextel may not<br />

be offering in the near future<br />

is a phone that offers voice<br />

over IP via 802.11 wireless<br />

LANs. Although company<br />

officials said earlier this year<br />

Nextel and Motorola Inc.<br />

are testing such a product,<br />

Santoro said that the companies<br />

test many things and<br />

that Nextel has yet to commit<br />

to a Wi-Fi phone. ´

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