Gigabyte GrapeVine




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  Vol. 3, Issue 06      (c)1996 GKM Journals      June   1998   
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Topical Index

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Topic 1

/// Intel To Pump $50 Million More Into China ///

Last month, Intel Corp. informed the media that it would be pumping more big bucks into a Chinese operation. The major computer chip maker announced on May 5 that it planed to channel $50 million into an information technology research center in China over the next five years. Based in Beijing, the research center would specialize in Internet-related technology mainly pertaining to Chinese language applications. A flash memory testing and assembly plant in Shanghai was opened by Intel four years ago, and was expected to finally begin its flash memory testing and assembly last month. One Intel executive revealed that his company has already invested a total of $198 million in the Chinese enterprises to date.





Topic 2

/// NOAA Tells Civilians To Get Lost ///

The National Oceanic and Atmospheric Administration announced in May that it would no longer allow data collected from its satellite systems to be used when there are commercial satellite-based services available that can meet the same need. NOAA's instruments that relay information back to earth from their orbiting satellites have been used for purposes ranging from aiding explorers and mariners to find their way-- to tracking animals for habitat research. These services may soon be off limits to civilians and commercial users. As would be expected, many people are banking on private companies such as Final Analysis, based in Lanham, Md. and Orbcom at Dulles, Va. to fill in the void when NOAA pulls the plug. NOAA officials noted that when the private sector can facilitate similar services, non-government environmental use of their equipment will be allowed only when there is also a [government] interest or benefit to be achieved in the application. Only in rare cases where the probability of loss of life is notably high, such as exploration in very remote Arctic areas, would further use of the NOAA system be permitted. Even then, NOAA may have to determine each request on the merit of the information being sought and its relevance or value to the government. In many instances, weather information at sea would be considered of significant importance for both the government and the private sector. However, NOAA would rule out sharing data with a private company whose sole purpose of exploration was to map out an ocean in search of oil or mineral resources strictly for its own future profit.





Topic 3

/// Did Microsoft Use Coercion To Gain Support? ///

One news story out of Washington last month said that the U.S. Senate Judiciary Committee is perplexed that Microsoft Corp. has not allowed PC manufacturers to anonymously speak to its investigators about OEM (original equipment manufacturer) licensing deals. The senators are questioning whether Microsoft gave special concessions to hardware OEMs or possibly engaged in some form of coercion to gain their support in favor of the MS Internet Explorer browser over that of its rival, Netscape Navigator. A Judiciary Committee staff member asked for a letter from the software mogul stating that it would be alright for the members of the committee to speak with Microsoft's licensees without Microsoft having to know about it. As speculated by the staff member, it appears that some of the licensees are afraid of retaliation. As of the first week in May, the Judiciary Committee had not received such a letter. But Microsoft officials said they intend to oblige in the same manner as they complied with a similar request from the Justice Department's Antitrust Division when the JD promised complete confidentiality to the trade partners and OEMs.





Topic 4

/// Vendors Shy Away From Y2000 Guarantees ///

Customers may be demanding it, but they are not likely to gain guaranteed Year 2000 compliance from their service providers and vendors in the near future. According to a survey conducted this year, of the 200 inform- ation technology specialists polled, only 21 percent offer legally binding guarantees of their Y2000 compliance solutions. Although the demand for guaranteed Y2000 compliance is high, the scoop has it that the vendors' lawyers are telling them to "keep their mouths shut." Some vendors are saying that it would not be practical to honor such a binding agreement when within a large client's organization there would be a multitude of people having access to, and use of the software. One could not determine whether the solution failed because of tampering or because another software application became corrupted. The legal questions about Y2000 compliant solutions continue to draw attention as compliant-related law suites have already cropped up. Two of the most noted cases involves the class- action suites brought against Symantec Corp. and Macola Soft- ware Inc. Another set-back for the Y2000 solution vendors came in the form of a proposed California bill that would have protected the companies from Y2000 liability, but was killed because its range of protection was too broad.





Topic 5

/// Phone Calls Via The Net Without A PC ///

New developments in Voice-Over IP technology is predicted to offer benefits to small and mid-sized businesses who take advantage of them. Very soon, small companies will be able to make telephone calls to contacts anywhere across the globe-- with or without a PC, according to industry observers. The small businesses and their ISP (Internet Service Providers) stand to gain from the new services. The small business will save money on long distance phone calls, and the ISPs will reap a profit from this relatively untapped new industry. One international telecommunications provider, IDT Corp., now offers four classes of Internet telephony solutions. One of them, Net2Phone, is a software product that permits the user to place long-distance telephone from a PC to any telephone in the world. When the call is launched from the PC, it is then routed over the Internet to Net2Phone switches, where the calls are relayed to their desired destination. IDT is reportedly engaged in talks with several computer makers to encourage them to install Internet telephony products in their new desktop PC systems. Taking a different approach, Aplio Inc., located in San Bruno, California has developed a device that is about the size of an answering machine, which allows long-distance phone calls to be placed over the Internet without using a computer. When a user initiates the phone call and tells the receiving party to press the appropriate keys on his or her Aplio/Phone, it will automatically configure the phone for the incoming Internet call. After the Aplio/Phones are configured, then both parties hang up, both phones ring to notify the users that the conversation can resume over the Internet. Through a marketing plan recently launched by Aplio, the company plans to authorize about 500 resellers in the U.S. by September.





Topic 6

/// New Encryption Standard Sought By Government ///

Many leading commercial security organizations have already submitted specifications to the federal government for a new Data Encryption Standard (DES) to replace the existing one. With the deadline only about a month away, numerous vendors are cramming to get their offerings in on time, and with the stakes being so high, all the submitting companies are keeping it all hush in regards to their procedures and technologies. Since the present DES is over 20 years old, the federal govt. has flashed the help wanted sign in front of the commercial security community to come up with a new DES... with the only stipulation that it be based on both the Advanced Encryption Standard (AES) architecture designed to protect some current government data and the Triple DES interim standard. Currently, DES contains only a 56-bit encryption key length, and Triple DES a key length of just 112-bits. But government officials estimate that Triple DES will remain in use for another few years, or until its successor is determined. They call it security, but according to one security analyst, DES is in the public domain and employs a key mode where both the sending and receiving party use the same key. Knowing that DES has become outdated-- mainly due to its limited encryption key length, the U.S. Govt. has placed the National Institute of Standards & Technology (NIST) at the head of the project.





Topic 7

/// MS Joins World Clique Extolling Smart Cards ///

A recent E-mail document sent to my office reported a Windows 98 beta tester has discovered built-in "smart card" support infused within Microsoft Corp.'s new operating system. The beta tester said he found a folder named "scard" on his disk that much to his surprise, did not contain sound card in- formation, but instead contained a program which will be used to interface "smart card" readers with a PC. Included with the information found in the Read Me file was the statement that the Beta release provides the necessary files needed to enable smart card aware application(s) or service provider(s) to communicate with a smart card through a reader attached to a PC and its corresponding device driver. It was also noted in the Read Me file that Microsoft does not provide the reader hardware or the necessary drivers to interpret smart card data. On the global spectrum however, one May 5th news story out of Washington, D.C. listed Microsoft as one of the major players in the push to speed up the transition from conventional credit cards to the smart card technology. It was also reported that Compaq Computer, IBM, and other leaders in electronics have agreed to create a common API (Application Program Interface) for fingerprints and other identification criteria. The group emerging from the coalition, the BioAPI Consortium, will manage work done by several companies to create the common API. A major wire service revealed last December that the Belgian bank card company Banksys SA had already implemented its Proton electronic purse technology, which is used by Brazilian citizens, Australians, and the U.S. Marine Corps to buy everything from beer to newspapers, or in the case with the Marines, the payment cards are also used to sign out weapons. It was estimated that about 15 million of the electronic purses are in use around the world. The mini-card contains a microchip that can store monetary data, personal information, and the user's identity or social security details. Under the trade name of Banksys, which is jointly owned by all of Belgium's major banks, it was predicted that by the end of 1998 some 40 million Proton cards would be in circulation around the world.





Topic 8

/// Proposed Senate Bill OKs E-mail Encryption ///

Your right to scramble your own e-mail messages has been acknowledged by two courageous U.S. Senators, namely, John Ashcroft, R-Mo., and Patrick Leahy, D-Vt. The bill, as introduced May 12, would guarantee our right to scramble electronic messages using virtually unbreakable codes to maintain privacy. In opposition to the bill are the Clinton administration in general, The Justice Department, and expressly the FBI. The Clinton administration stands against the use of encryption without a means for law enforcement agencies to unscramble messages for purposes of "crime investigation." Attorney General Janet Reno has gone on record as saying, "Without encryption safeguards, all Americans will be endangered." Senators Ashcroft and Leahy describe their bill as a compromise on the issue-- offering sound reasoning for privacy advocates, law enforcement, and the computer industry. But the senators are willing to admit that the Justice Department hasn't agreed to support the bill. The legislation would affirm that Americans can sell and use encryption software without "key recovery," which law enforce- ment could use to unscramble electronic messages if they suspect that a crime has occurred. The proposed senate bill was applauded by Privacy groups, such as the Washington-based Americans for Computer Privacy. The measure would also require that whenever key recovery is used voluntarily, law enforcement must obtain a court order before it gets the code to unscramble private messages. Ashcroft and Leahy have written in some provisions to aid law enforcement such as making it a crime to willfully use encryption to conceal incriminating information. A new Net center would also be established under the attorney general, according to provisions in the bill, which would give aid to federal, state and local law enforcement agencies to break encryption codes and share information about encryption technology. To accommodate our encryption technology industry, which has been burdened with tight export restrictions, the proposed bill would help ease those restrictions to allow the U.S. to compete with the foreign-made software that isn't subject to mandatory key recovery.





Topic 9

/// Olympus D1000 Is A Handful ///

Billed as the world's first digital voice recorder with mini- card removable media, Olympus America has introduced its handheld D1000 Digital Voice Recorder. The unique device is packaged with IBM's "ViaVoice" software and Intel's Flash Memory Miniature Card, which puts the D1000 into a whole new category of personal voice recorders. Personal memos, reports, and other types of dictated messages can go into the Olympus D1000 digital voice recorder where it is then stored on the Flash Memory Miniature Card. Once the information is transferred to a PC, IBM's ViaVoice dictation software converts the recorded voice into text, which can then be edited and printed. The D1000 will soon be ready for shipping, and will be packaged with a cable, carrying case, its customized ViaVoice, and a 2MB Intel Flash Memory Card plus a PC Adapter Card. Being that the PC Card Flash memory is removable, the stored information can be shared with co-workers, family members or friends. An optional Miniature Card Reader/Writer is also available for desktop PC users. The D1000 measures just 4.7" (H) x 1.81" (W) x .091" (D) and weighs in at only 6.0 oz. with batteries. Recording time is 16 minutes in [standard] mode with a 2MB card and 33 minutes with a 4MB card. Using [long] mode, recording time is 34 minutes with a 2MB card and 72 minutes with a 4MB card. However, if you are using ViaVoice, the D1000 must be run in the Standard mode. A 2MB card comes as standard with the unit, and optional cards up through 8MB will be available this Summer. Although Olympus did not post any pricing information on its Web site, you are given the option to locate a dealer in your area through an online search engine. Retail pricing is expected to be in the $300 range.





Topic 10

/// PC Channel Sees Europe As New Frontier ///

It's called "globalization," and the term has been leveraged into our language whether we like it or not. The PC distribution channel has taken note of the momentum gained in that direction of late, especially in Europe, and plans to jump on board the speeding train of globalization just in time to cash in on the emerging Euro-dollar currency. PC channel companies see the likely unification of the European Community's currency as a key factor for expansion of business within that continent. They anticipate the arrival of a common currency as a potential means to simplify doing business there, and make financial management in Europe a little easier. In a power move, it was reported last month that U.S.-based Avnet Computer Marketing Group bought one of the larger British distributors, namely, Bytech Systems Ltd. Without revealing any details, Ikon Office Solutions Inc. also announced plans for acquisitions in Europe. Other U.S. distributors seeking European holdings were listed as CHS Electronics, Miami, Florida and Ingram Micro Inc., Santa Ana, California. One business analyst speculated that Ikon's acquisitions in Europe are just a part of its long-term business strategy, which is to zero-in on the European copier business, and then expand from there to become a more augmented integration and solution provider.





Topic 11

/// Netscape Browser For OS/2 In The Works ///

Talks have resumed between IBM Corp. and Netscape Communications Corp. over the possibility of developing an OS/2 version of Netscape's next-generation browser. Both IBM and Netscape acknowledge that this is an important issue. IBM needs to make sure that the only browser that works with OS/2 is kept up-to-date, and Netscape essentially wants to gain some market share against its arch rival, Microsoft. According to one IBM source, the company is anticipating an agreement to take place on the next-generation browser by the end of this year.





Topic 12

/// Digital Gains More Allies For Alpha ///

Soon, Digital Equipment Corp. (DEC) will have as many as four manufacturers to depend on to build its Alpha series processor chips. Talks are under way with IBM Corp. and Advanced Micro Devices Inc. (AMD) in hopes that DEC's fabrication facilities will be doubled from the existing two-- Intel Corp. and Samsung Electronics. The Federal Trade Commission (FTC) approved the deal with Intel about two months ago, and the fabrication partnership with Samsung looks to be a done deal. But as added insurance to keep up with market demand, DEC has turned to IBM and AMD with the blessing of the FTC, who has taken the position that DEC really needs alternate sources to maintain production of the [only] alternative to the Intel architecture. Also included in the talks between DEC and AMD is the conjecture that there may be a place where AMD's new 32-bit K7 chip would coexist in systems with the 64-bit Alpha chip from DEC.





Topic 13

/// Bogus Java Applet Plagues IE-4.0 ///

Users of Microsoft's Internet Explorer 4.0 have been plagued by a hostile Java applet that paints their desktop white. Microsoft officials claim that the recently discovered intrusion is a nuisance, but it poses no security or privacy risks. But one industry source stated that it may only be the first of many bogus applets, which attack Microsoft ActiveX controls. The Java applet in question is only 1-Kbyte in size, and affects IE 4.0 while running Active Desktop. When it paints the PC screen with all white pixels, the user must reboot before work can be continued. According to one analyst, if a user runs into the code while on a Web site, any open files could be lost if they were not saved. It was also recommended that the old [CNTRL]+[ALT]+[DEL] method of reboot be executed to reset Internet Explorer properly before continuing with work tasks.





Topic 14

/// Millions Of Pagers Silenced ///

At about 6 p.m. EDT Tuesday, May 20, an errant space satellite caused a loss of communications to millions of pagers and other communications. The Galaxy 4 satellite went out of control Tuesday when its onboard control system and a backup switch failed. Engineers were able to send commands to the craft but were unable to restore its proper orientation with Earth. Behind-the-scenes television transmissions in the U.S. and the Caribbean were also interrupted, but it was not immediately clear how long the outage would last. One option being considered to remedy the situation would be to position a backup satellite that is already in orbit into Galaxy 4's path. One industry official noted that this could take several days or more. The outage affected doctors, police departments, and millions of others who have become dependent on pager technology to carry on their daily tasks. It was estimated that 80 to 90 percent of the 40 million to 45 million U.S. pager users went without service. Although the voice-mail function on pagers was still operating, the pagers would not beep to notify a subscriber of the incoming message. Pager users had to call in to their service to check on messages. The only customers not affected were those whose connections were linked through ground-based radio transmitters. Television network feeds to their local affiliates were briefly lost, and National Public Radio said it was unable to transmit any programming content to its affiliates. [Could this be a prelude to the chaos predicted by a recent guest on the Art Bell radio show? According to the call-in guest astronomer, there is a gigantic meteor shower headed our way, which should reach our outer atmosphere this November. According to his predictions, from 90 to 100 percent of all orbiting satellites could be lost.]





Topic 15

/// Senate Bill Expands Immigration ///

The U.S. Senate approved a bill last month that will increase the number of temporary visas issued to foreign workers from last year's 65,000 to 95,000. The news slant on the story says that high-tech executives and corporations have been lobbying Congress to adopt the measure as a way to abate the shortage of skilled workers in the United States. [I doubt that everyone will buy that story.] Supposedly, the bill (Senate Bill 1723) does provide some protection for U.S. workers, but other than increasing penalties on companies that "abuse" the system [whatever that means] and offering to provide "job training" for displaced U.S. workers, it does not do much for the moral of the American worker.





Topic 16

/// Govt. Suites Filed Against Microsoft ///

The U.S. Department of Justice and the attorneys general from 20 states filed antitrust lawsuits against Microsoft Corp. on May 18. The precedent-setting law suits call for Microsoft Corp. to change the design and "look" of its Windows operating system software. Government lawyers maintain that Microsoft has kept an unfair stranglehold over not just the computer industry, but the future of our high-tech-dominated economy. Microsoft has been seated in its dominant position in the PC operating system industry for quite some time, and it has attained more than 90 percent of the market. This is a lot of leveraging power for any one company to hold... at least, this seems to be the opinion of the government. Government attorneys cited internal memos between company executives that indicate that Microsoft used its position of power to promote its other products such as the IE 4.0 Web browsing technology, which is bundled with the Windows 95 operating system. The govt. attorneys affirmed that such practices tend to destroy new competitors. In spite of the law suits, the government did not seek to delay the June 25 delivery of Windows 98, but demanded instead that changes be made in the software. In a news briefing, Microsoft chairman Bill Gates countered that the government suits attempt to set precedents that could be applied to all forms of the company's Windows operating system.





Topic 17

/// Could There Now Be An Aunt Bell? ///

Out of the heritage of Ma Bell, there appears to be a new dynasty in the making. Pending approval by the Federal Communications Commission, the contract to purchase "Baby Bell" Ameritech for $62 billion by telecommunications giant, SBC Communications, a powerful network covering nearly every region of the U.S. would be created. All the news media were running headline articles of the pending merger, which would overshadow the recent mega- deal formed when WorldCom engineered its $37 billion takeover of MCI Communications. The combined SBC/Ameritech company would have command of 57 million phone lines, which works out to about one third of the nations total. If the deal meets the approval of the FCC and the corporate shareholders, only four of the seven Baby Bells created in the 1984 breakup of AT&T would remain. Formerly called Southwestern Bell, SBC bought out Pacific Telesis Group about one year ago for $16.5 billion, and still has its sights set on the completion of a $5 billion takeover of Southern New England Telecommunications of Connecticut.





Topic 18

/// Too Much Automation In Windows 98? ///

One selling point of Windows 98 being touted by Microsoft is its ability to update system components through the Internet... AUTOMATICALLY! This feature may be welcomed by some users, but many resellers see a potential problem for their corporate customers. Having untested changes automatically introduced into a network of workstations could produce a chaos of conflicts. Many of those enterprise systems had to be painstakingly fine tuned to keep them stable, and the sudden introduction of an update could throw a monkey wrench into the works. System bandwidth and directory structure also may not permit the abrupt changes that would result from downloaded fixes and updates. Now that its attention has been called on the matter, Microsoft will offer the "Windows 98 Image Preparation Tool" to address the situation. This new utility will work in conjunction with the System Policy Editor, which allows resellers and service professionals to control Windows features. The System Policy Editor is not all that new. It has been a part of the Windows operating system since the release of Windows 3.11. In Windows 98, however, it will permit the auto- matic download feature to be turned off. But the bad part about that is that the System Policy Editor can only be switched off AFTER W98 has been installed or when the user FIRST logs on to the network. The reseller still has to install and configure the applications. But for the user and the reseller, there some highly favorable improvements in W98 over W95. Windows 98 offers full-native support for the USB (Universal Serial Bus) and IEEE-1394 standards. Some of the old familiar utilities such as Defrag, Backup, and ScanDisk have been either enhanced or rewritten completely, according to industry sources. The Windows 98 FAT (File Allocation Table)32 overcomes the 2.1- Gigabyte barrier for hard disk partition sizes. Existing FAT- 16 directories can be migrated up to FAT32 via another new utility. Also on the plus side, W98 allows a broader range of control over desktop configuration through custom toolbars, ActiveX controls, and imbedded Java applets. An Explorer-based desktop display may, however, have to be replaced with a more traditional-looking desktop if Microsoft is forced by the Justice Department to ship Windows 98 minus its Internet Explorer browser application.





Topic 19

/// Solectron's Acquisitions Include IBM Units ///

The purchase of IBM Corp.'s Charlotte, North Carolina facilities by Solectron Corp. last month is another indication of the company's aggressive acquisition policy. Solectron agreed to buy IBM's Electronic Card Assembly and Test Operations last month, and as part of the settlement, Solectron also gained access to 51 IBM disclosures and 115 of its patents. Also stipulated in the agreement was that Solectron will provide PC-board assembly services to IBM for the next three years. Last December, Milpetas-based Solectron proudly made known that it had acquired the manufacturing assets of NCR Corp., which is based in Dayton, Ohio. The price paid for that takeover was estimated at $100 million.





Topic 20

/// Trouble Brewing In Long Distance Services ///

There could be legal problems ahead in deciding whether or not the Regional Bell operating companies (RBOCs) can bypass a federal law, and provide long-distance services via a third party carrier. In the center of the controversy is Quest Communications International Inc. The Denver-based long-distance carrier is constructing a fiber-optic network, and has partnered with two RBOCs within the past month-- namely US West Communications Group and Ameritech Corp. The agreement between the three companies allows Quest to sell local and long-distance service packages. The endeavor by Quest has prompted two leading long-distance companies, AT&T Corp. and MCI Communications Corp., to file suit to stop the new long-distance service. The suit names Quest and US West, and maintains that the service is in violation of the Telecommunications Act of 1996, which states that the regulated RBOCs are not permitted to sell long-distance services unless they can prove that their local markets are open to competition.





Topic 21

/// Western Digital Moves To MR Technology ///

Last month, Western Digital Corp. began shipping its latest version of the Caviar hard drive line, but with one new twist-- magnitoresistive (MR) head technology. Available in three versions, the new drives are produced in capacity ranges of 2.5-Gigabytes to 8.4-Gbytes, and have an average seek time of 9.5 microseconds. They can transfer data at 33.3-Mbytes per second. Rotation speed for the Caviar drives is 5,400 rpm. The drives are manufactured at Western Digital's facilities in Singapore, and are shipped with EZ-Drive version 9.06W overlay software that permits high-capacity hard drives to be formatted on older systems where the BIOS (basic input/output system) greatly limited drive partition size.





Topic 22

/// Y2000 Less Painful For Some ///

To make the Year 2000 transition a little less financially painful for some businesses, a Baltimore-based company known for its ACC-PAC for Windows and SQL Accounting Solutions, is making available a free software application that tests computer systems for Y2000 compliance. The free software from SystemLink will also generate a report that companies can use to walk step-by-step through the Y2000 compliance process. More information is available at their Web site at: www.systemlinkink.com





Topic 23

/// Animated Site For Animation Developers ///

A Redwood City, Calif. company has launched a Web site designed to aid software developers create animated scripts that add animated interactivity and transaction capabilities to Internet sites and corporate intranets. NetObjects Inc. has posted its site called ScriptBuilder.com, which offers a variety of resources for developers to download as samples so they can see just what a particular script will do. There are also online tutorials and a forum for posting questions to the ScriptBuilder site.





Topic 24

/// New Maxtor Drive Is Big And Fast ///

Named the DiamondMax 2880, the new 11.5-Gbyte Ultra DMA/IDE hard drive from Maxtor Corp. rivals the speed of SCSI-2 drives. Note: DMA stands for Direct Memory Access IDE: (Integrated Drive Electronics) SCSI: (Small Computer System Interface) Applying the new standard to a 3.5" architecture, Maxtor has positioned the 2880 into the 33-Mbytes/second category for data transfer rate, and depending on the drive's applications and interface used, it is claimed to achieve a seek time of less than 9.0-ms. The 2880 uses a rotation speed of 5,400 rpm and "on-the-fly" error correction to attain high data transfer rates while correcting multiple-error bursts. The suggested price for the 11.5-Gbyte drive is $479.





Topic 25

/// Linux... A Well Kept Secret ///

There is a flexible operating system known as Linux, and although it is used worldwide, it seems to be a well kept secret. Linux has experienced a rapidly growing grassroots following since its source code was posted on the Internet for free in 1991. Now that it has been updated and rediscovered, many VARs (value-added resellers) are taking a second look. The Linux operating system, for the most part, is distributed for free or at least generally at a very low cost, and according to trade sources, is a mirror image of the venerable Unix O/S. It runs all key Unix tools, and is claimed to have an install base of about 3 million users. One observer said that Linux is run on more systems than either the Macintosh or IBM's OS/2 operating systems. Linuxs' development traces back to a student at Helsinki University of Technology named Linus Torvalds. After he posted it on a school FTP server, other student experimenters took a liking to the code, whereby Linux was proliferated into a community of users. Resellers getting acquainted with the operating system say they like it because it is more easily customized than the alternative operating systems. There are now a multitude of commercial applications that are compliant with Linux. Corel Corp. is using Linux in one of its new hardware items, which may be marketed as a Network Computer, while Red Hat Software Research plans to ship an estimated 400,000 copies of a Linux-based product this year. Other companies developing Linux-based products are: ApplixWare, Flagship, StarOffice, Faircom, AcctOnit, C/Books, Netscape, and WordPerfect.





Topic 26

/// Copper Is In-- Aluminum Is Out ///

As the fervor within the microprocessor industry has demanded increasingly faster chips, but smaller wafer sizes, several chip vendors are partnering with IBM Corp. to help them meet the new challenges. According to some observers, copper-- instead of aluminum is the way to go where micro-circuit technology is concerned. Less power is consumed, chip sizes are diminished, and performance is increased when copper circuits are etched into the silicon wafer as opposed to aluminum. Most all of the remaining Socket 7 technology processor vendors have contracted with IBM for volume production under the newer copper technology. Advanced Micro Devices Inc., Cyrix Corp., and Centaur Technology have already signed agreements with IBM, and Digital Equipment Corp. is reportedly completing such an agreement. [It should be noted that "Socket 7" technology is an older, but well established CPU architecture, which is still competing with the newer Intel Slot 1/Pentium II technology.] IBM unveiled its new manufacturing process last fall, which calls for copper circuitry rather than aluminum. According to IBM officials, they have overcome the problems that were encountered with copper construction in the past, which made it difficult to apply during semiconductor assembly procedures.





Topic 27

/// CPU Advances Burden Laptop Batteries ///

Microprocessor technology advancements, which have driven the computing power of today's laptops up to the level of an average desktop PC also have put an immense load on the battery. Most computer professionals and notebook PC manufacturers have seen this coming as screen sizes have increased and more power-hungry components have been added. The introduction of the Intel Pentium II architecture into a laptop PC two months ago caused some of the power consumption and heat dissipation problems to reappear that were thought to have been under control. While mobile processor designs have advanced, they have set battery life back about two generations, according to one observer. Now the notebook PC makers have mixed opinions as to which battery technology to move to. Most of them have given up on zinc-air batteries, and many have turned to the lithium polymer technology because of its 10 percent gain in overall power. Hewlett-Packard Co., however, has selected the prismatic lithium-ion battery to power its OmniBook Sojorn notebook. HP engineers were able to design the battery to be very thin-- thin enough so that it fits under the keyboard. But the higher cost of the battery is its major shortcoming. The IBM Personal Systems Group is staying with the long-established and traditional lithium-ion battery for its line of laptops. The company had to resort to some intense power management features, however, to attain a 4-hr. maximum battery life in its Pentium II-powered ThinkPad 600 unit. Which ever of today's battery technology is employed, when it comes to high-end mobile computers, they are being pushed to their limits.





Topic 28

/// Big Network Caters To Little Screen ///

A strategic partnership was formed in May between NBC and the premier Internet consulting firm, USWeb Corp. USWeb will assume the task of expanding production capabilities for NBC's interactive properties and services. As one of the world's largest Internet consulting companies, USWeb will provide NBC with access to its team of 1,000 professionals spanning four countries. As part of the deal, USWeb will offer Internet production, technical services, and development expertise through USWeb Studio, the company's creative and Internet design group. NBC will maintain control over its own interactive productions, however. The NBC / USWeb team will continue to produce Internet shows like "Homicide: Second Shift" and "The Tonight Show With Jay Leno"., expected to be featured during NBC.com's Summer fare.





Topic 29

/// New Chips From IBM Target PC Niche ///

As IBM Corp. introduced its two new multimedia processor chips last month, the company made known to the other PC chip makers that it plans to stake its claim in the sub-$1,000 and sub- $1,200 system markets. A 300-MHz (PR300) and 333-MHz (PR333) offering of its 6x86MX processor line will target the low-cost PC arena, where the biggest growth is taking place, according to one market research team. IBM developed the chips under a licensing agreement with Cyrix Corp., which is now a subsidiary of National Semicondutor Corp. Although they are partners, IBM and Cyrix will be competing with one another to see who gains the 3-to4 percent of the estimated market share that is ripe for the picking. Most analysts will concede that Intel has control over about 80 percent of the PC chip market, but 4 percent of the millions of dollars of the remaining business is still nothing to be taken lightly. Systems manufacturers and PC resellers will welcome the low prices of the new 6x86 chips, which are tagged at $217 for the PR300 and $299 for the PR333 when purchased in lots of 1,000.





Topic 30

/// FTC Probes Intel... Merced Chip Delayed ///

The 64-bit Merced chip, originally scheduled for volume production at the end of 1999, will now be delayed until mid-2000. Industry sources noted that the delay of the 64-bit Merced processor comes at a time when the Federal Trade Commission is continuing its investigation into alleged anti- competitive practices by Intel. The delay of Merced may have some negative long term effects on the computer industry in light of the fact that Microsoft Corp. had planned to deliver its 64-bit version of Windows NT to coincide with the release of Intel's new processor chip.





Topic 31

THE BOTTOM LINE



[$] EU ENCROACHING ON MICROSOFT CASE [$] Although I have never been a cheerleader for Bill Gates and company, I was surprised and somewhat annoyed when I read last month that the European Union was encroaching into the U.S. antitrust probes of Microsoft Corp. Then I found out that the U.S. Justice Department and Federal Trade Commission have had an antitrust agreement with the EU for quite some time. One leading industry trade publication disclosed that a meeting was scheduled between U.S. Attorney General, Janet Reno and Karel Van Miert, the EU's Competition Commissioner, along with Assistant Attorney General for Antitrust Joel Klein, and Federal Trade Commissioner Robert Pitofsky. The meeting in Washington was called to discuss several key topics, which included the upgrade of some trans-atlantic antitrust related agreements and to discuss the Microsoft issue and the proposed WorldCom Inc., MCI Communications merger. The EU is supposedly cooperating with the Justice Department in terms of providing information about Microsoft's practices in Europe. Karel Van Miert, the European Union's Competition Commissioner was quoted as saying during his speech in Brussels that "We are fully supportive of the position of the U.S. Justice Department." But he did not comment as to whether the EU would move against Microsoft on its own. It is a little known fact in the U.S. that we have a formal agreement in operation under which we exchange information across the Atlantic between the Department of Justice and/or the FTC with their European Union counterparts. There is a term called "positive comity", which the U.S. and the EU have thrown into the language of this case. Positive comity is described by The International Chamber of Commerce as as an agreement to "provide governments with a preferable alternative to the extra-territorial exercise of their jurisdiction when they wish to deal with anti-competitive activities in other countries which adversely affect their consumers." Which translates to-- an agreement whereby a party in one country who thinks he has been harmed by anti-competitive actions occuring in another country can ask that country for assistance or jurisdiction to take action. The EU started an investigation last October, which looked into Microsoft's business practices, specificly, the company's licensing agreements with some European Internet service providers. Microsoft claims it has amended those agreements to make them legal, but some U.S. and EU officials think not. Without knowing all the facts, I cannot say which side of the Microsoft antitrust issue I would take at the moment, but it is becoming more evident each day that between our U.S. federal bureaucracy and now, the meddling by foreign powers, it is getting increasingly difficult for a company to make a buck in our "global" economy!


Gary Miller

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