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/// Intel Slot 2 Architecture Announced /// ------------------------------------------- Intel Corp. appears to have made another move to extend its control of the high-end PC market with the introduction of the Slot 2 line of chip sets. Designed for next generation servers, Intel intends to have the Slot 2 chips employed in computer motherboards populated with a new version of its Pentium II processor. The new Pentium chip supported by Slot 2 has not officially been named yet, and according to analysts, it is still unclear when it will become available. In late May, one trade publication indicated that the chip sets and new Pentium server processor chips will run in the speed range of 233-MHz to 400-MHz.

Topic 2

/// NEC PowerVR Gains Momentum /// ---------------------------------- NEC Electronics Inc. is enjoying wider acceptance of its PowerVR 3-D graphics accelerator as some principal players in the PC graphics industry released products which use the technology. While PowerVR was developed by Santa Clara-based NEC and Video- Logic Ltd., San Bruno, Calif., other graphics card vendors such as Diamond Multimedia Systems Inc. have included the new 3-D video architecture within their product lines. The video quality and graphics rendering process of the PowerVR accelerator is reported to be similar to the design approach set forth by Microsoft Corp. in its Talisman program, which was designed to enhance 3-D technology for the PC industry. By reducing the number of chips and extra memory required for 3-D rendering, NEC's PowerVR technology produces millions of polygons in real-time.

Topic 3

/// CTX Announces Its PanoView LCD Monitors /// ----------------------------------------------- Among the computer display vendors announcing 14" and 15" flat- panel LCD (liquid-crystal display) monitors is CTX Opto Inc. of Sunnyvale, Calif. The CTX PanoView 745 display offers a 14.5" color LCD display, which according to some analysts, is targeted to the desktop PC market as a replacement for 15" CRT (cathode ray tube) monitors currently in use by the financial and other vertical markets where the advantages of the LCD outweigh the lofty prices being asked for the new technology. The PanoView, for example, will carry a $2,795 price tag. One market reporter offered the assurance that the PanoView does not require a special video card or driver to power it. But until LCD monitor prices come down radically, most of us will have to settle for the lowly CRT screen to provide our sight and insight within the world of personal computing.

Topic 4

/// Cyrix M2 Chip Carries High Hopes /// ---------------------------------------- Cyrix Corp. is depending heavily upon its newest entry into the x86 processor field with the debut of the 6x86MX rated M2 chip. Industry analysts are saying that the future of the struggling chip maker hangs on whether the M2 is successful against its rivals from Intel and AMD in the Pentium-class MMX (Multimedia Extensions) category. Even though the company has seen some success with its low-margin MediaGX line, they may fall further behind the competition if the M2 fails to gain momentum. To date, Cyrix has relied on IBM Microelectronics for production of its silicon wafer materials, but according to some sources, the relationship between the two companies may be turning sour. Contract negotiations over IBM's commitment of fabrication facilities is just one pivotal issue that could turn the tide against Cyrix. On the issue of pricing, IBM appears to be over-pricing the M2 as compared to the guidelines set by Cyrix-- In 1,000-lot quantities, Cyrix introduced the 166-MHz 6x86MX chip at $190, the 200-MHz at $240, and the 233-MHz at $320. IBM is asking $202, $369, and $477 respectively for their PR series chips.

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/// Motherboard Manufacturers Are Throwing Out The Baby /// ----------------------------------------------------------- With the introduction of Intel Corp's Pentium II microprocessor in April, it brought with it the beginning of the end of the Baby AT style PC motherboard and ushered in a new era of for the computer industry in general. The novel single-edge contact (SEC) connector of the Pentium II module is in itself a radical departure from the socket layout of the conventional microprocessor chip. A "modular" design was required with the Pentium II architecture to house both the processor chip and its unique L2 cache memory. And soon to arrive on the scene will be the Accelerated Graphics Port (AGP) chip sets to support the newer computing technologies and give another boost to PC 3-D graphics performance. Neither the new modular Pentium II SEC connector, called Socket 1, or the AGP technology are supported on the Baby AT mother- boards. So... enter in the ATX and NLX motherboards. Intel introduced the NLX board last fall as a replacement for the LPX-class motherboard, and announced that the new units would facilitate easier removal from a PC chassis for the purpose of repair and upgrade modifications. According to industry sources, the NLX architecture will accommodate the Pentium II module and the AGP chip set.

Topic 6

/// In-Fighting And Turmoil At NEC /// -------------------------------------- An internal conflict is taking place within the corporate confines of Packard Bell NEC Inc. over a direct sales strategy. A June 9 report published in the Computer Reseller News (CRN) disclosed that NEC Technologies Inc.'s successful monitor and PC peripherals business could be at stake if there is a back- lash from the distribution channel over plans to sell NEC PC systems directly to end users in North America. The controversy has pitted NEC Technologies against Packard Bell Inc., which had acquired NEC in June of last year. NEC would much rather continue its sales through the distribution channel, but Packard Bell is proposing a direct sales maneuver. Under a licensing agreement established last year, Packard Bell NEC retained the right to the NEC brand name for PC systems that it would manufacture and sell. And, because NEC Corp. only owns a 40 percent share of the total corporation, there is little it can do in controlling the operational tactics of Packard Bell NEC.

Topic 7

/// Electronic Banking Partnership Announced /// ------------------------------------------------ A news story from New York last month outlined a partnership endeavor between Unisys Inc. and KnowledgeFlow Inc. which will focus on the growing interest in Electronic Banking. The two companies will soon offer the KnowledgeFlow Financial Notebook application with Unisys server software in an attempt to provide a broad selection of banks that can offer electronic banking to their clients. A solution already developed by the partnership for CoreStates Bank of Philadelphia will include the Unisys "Aquanta" software developed by KnowledgeFlow to allow access to one-touch invest- ment and fund updates, online conferencing, private E-mail to personal bankers, and other useful services. One KnowledgeFlow spokesman said that a user could just turn on their PC or their Web TV as desired to access what amounts to an online notebook containing their banking records.

Topic 8

/// Fix for Office 97 Offered by Microsoft /// ---------------------------------------------- A new file format within Microsoft Corp.'s Office 97 suite has caused a compatibility problem with files created with earlier versions of the software package, as revealed in CRN last month. The "Word" migration problems prompted Microsoft to issue an apology after the software giant received an enormous amount of negative feedback from customers relating to the file format changes, which have made it almost impossible to share documents with users of older versions of MS-Office. Unless a corporate user or organization upgrades to Office 97 entirely, they will encounter the Word file migration problems. Collaborating or just reading files from one co-worker to another may not be possible unless all parties have been upgraded to the newer version. Microsoft will offer an Office 97 Service Release for free this month that will include a Word file converter that will render native Word 6.0 and Word 95 documents.

Topic 9

/// Tillamook Chips Arrive On Notebook Scene /// ------------------------------------------------ Some notebook PC vendors in Taiwan last month gave us a peek at their upcoming lines of high-end Intel-based products built around a new Pentium processor code named "Tillamook." The new notebooks were displayed at the Computex Taipei Trade Show. Among the vendors showing off their wares were Chuntex Electronics Co. Ltd., Compal Electronics Inc., Kapok Corp., Mitac International Corp., and several others. Officially, Intel had not planned to announce the Tillamook chip until October or November, but since the cat is out of the bag, the Electronic Buyers' News (EBN) noted that the new chips will be offered in speeds of 200-MHz and 233-MHz. Intel's Multi- media Extensions (MMX) technology is incorporated in Tillamook, but most similarities to other Pentium chips ends there. Unlike previous Pentium-class devices, Tillamook will be sold in a module configuration referred to as a PC-on-a-card, which includes the microprocessor, 430TX support chip set, and other chips. EBN noted that the module does not support processors from Intel rivals such as Cyrix Corp. and Advanced Micro Devices Inc.

Topic 10

/// Lion's Share Of Battery Business /// ---------------------------------------- The first samples of Lithium-ion (Li-ion) polymer batteries are being received by a select group of equipment manufacturers now after several years of research. The new cells will play a major role in portable computing devices and cellular phones, according to analysts, and offer an advantage over present liquid-electrolyte Li-ion batteries in that they can be cut and formed into just about any shape to fit them into the tiny nooks and crannies remaining in the crowded confines of portable devices. Li-ion polymer batteries are currently under development by all the major players in the battery market including Duracell and Eveready Energizer.

Topic 11

/// 64-Bit O/S Arrival delayed /// ---------------------------------- IBM Corp. and Sun Microsystems Inc. are moving forward in the development of their 64-bit operating system, but many other vendors cannot report much progress. A press release from Washington related that Hewlett-Packard Co. and The Santa Cruz Operation Inc. (SCO) have delayed release dates of their 64-bit full compliance O/S until late 1998. As indicated in the June 16 press release, the two companies may offer "interim" releases before the end of this year. IBM and Sun are reportedly adding bits and pieces of support code and will offer complete support of the 64-bit platform by the end of 1998. Other reports denote that Microsoft will address 64-bit code in Windows NT 5.0 next year, but will not have the new architecture ready for this year's products. Hewlett-Packard may deliver a 64-bit application to run on its PA-RISC processor, but delays in the development in the HP/Intel "Merced" chip have taken that architecture out of the equation for now.

Topic 12

/// Nexar Testing 500-MHz Boards /// ------------------------------------ Nexar Technologies Inc. will introduce its next-generation PC line that will allow resellers to configure their machines for a wide variety of microprocessors, which cross the technology barrier between x86 and RISC (reduced instruction set computing) architectures. Nexar's Cross Processor Architecture (XPA) PC line was intro- duced at the PC Expo in New York last month. The line of mid- tower systems are designed to span the whole realm of processor technology from the Pentium, Pentium Pro, Pentium II, and RISC platforms within the same PC. The XPA system can be configured as anything from a basic PC to a low-end server, depending on which components a reseller would choose to install. The two-piece motherboard of the XPA system is the nucleus of the concept, as explained by a spokesman from Nexar. The sockets of the motherboard are designed to permit the reseller to select a CPU chip according to his customer's preference. An Alpha-class board is scheduled to ship from Nexar by September, and according to one report, the company is already testing an XPA with 400-MHz and 500-MHz processors from Digital Equipment Corp. Support for dual Pentium II chips is also provided on the XPA boards as published by company officials.

Topic 13

/// New Voice-Recognition Software From IBM /// ----------------------------------------------- A new line of voice recognition software was announced by IBM PC Company's general manager of IBM Speech Systems, Ozzie Ozborne last month. One of the new products, "Simply Speaking Gold," is an enhanced version of VoiceType Simply Speaking dictation software currently in production. Priced at only $99, the "Gold" version offers discrete dictation with a text-to-speech feature that allows the computer to read back what the user has dictated. The new application will run on most Pentium-class computers of 100-MHz or better and requires a standard sound card and 16-MB of RAM for Windows 95 operation or 32-MB RAM when used with Windows NT. Another product introduced by IBM called "ViaVoice" is billed as continuous-dictation software. Slated to ship in August, ViaVoice will sell for $199. Minimum system requirements for this new application calls for a Pentium MMX processor of 166- MHz speed or better and 32-MB of RAM. Both Simply Speaking Gold and ViaVoice have an accuracy rate of about 95 percent, as related by several resellers. Vocabulary for the new applications is in the 20,000 to 30,000 word range and is expandable to 64,000 via customized plug-ins.

Topic 14

/// More Audio/Video On The Net /// ----------------------------------- Progressive Networks Inc. has introduced "RealVideo" 4.0, which follows its very successful RealAudio Internet sound application. RealVideo 4.0 was made available as a free download from the Progressive Networks Web site at: [www.real.com] last month. The new product must be used in conjunction with current soft- ware player products such as: RealPlayer, RealEncoder, or Real- Server. There are new features incorporated within RealVideo- enabled RealPlayer which include one-click destination buttons for access to 30 types of live audio and video programs broad- cast by such news agencies as CBS, ABC, Fox News, and MSNBC. More than 100 corporate organizations have announced support for RealVideo including C-Span, Hewlett-Packard Co., and AT&T Corp., according to a Progressive Networks official.

Topic 15

/// Microsoft Spends $1 Billion On Comcast Deal /// --------------------------------------------------- Industry sources disclosed last month that Microsoft Corp. is spending $1 billion on the Comcast Corp. TV cable operation. The analysts said that the software behemoth is also closing deals with telecommunications companies in the asymmetric digital subscriber line (ASDL) and integrated services digital network (ISDN) services. The company is reportedly investing in DirectPC and other satellite distributors. Microsoft is putting a lot at stake in the Connected PC and Connected TV concept of broadband network-ready boxes, which would conform to Microsoft's PC98 specification for WebTV applications. Comcast is rated as the fourth-largest cable/telecommunications service in the U.S., and would be selling 24 million shares of special common stock worth $500 million plus $500 million worth of preferred stock to Microsoft when the deal is finalized. Trials of the new concept are expected to begin by mid-1998.

Topic 16

/// Net Snooper Software For Viewer ID /// ------------------------------------------ A Palo Alto, California company called Precept Software Inc. has introduced its "StreamWatch" software product, which will provide identification of viewers of networked audio/video applications over the Internet or corporate intranets. The software monitors streaming audio/video products that use the RTP (Real-time Protocol) and IP (Internet Protocol) multi- casting standards. Aimed at the Internet Service Provider (ISP) and corporate markets, StreamWatch is priced at $995.

Topic 17

/// Have We Reached The Limit Of CD-ROM Speed? /// -------------------------------------------------- Some industry sources are saying that we will see the CD-ROM drive speeds top out by the end of this year. As the 24x CD-ROM drives hit the market last month, a general consensus of opinion within the industry points to the reality that maximum speeds are in sight. The CD-ROM makers have pushed their drive speeds up another notch every four to five months over the past several years, and according to officials at TEAC America Inc., the 32x desktop CD-ROM drive they have scheduled for the end of the year just might be the quickest drive speed possible. Due to limitations such as rotational speed, vibration, and noise, current CD-ROM drives are limited to the 24x to 32x speed range, according to TEAC.

Topic 18

/// New Partnership Enables Internet Faxing /// ----------------------------------------------- Sending fax messages from a desktop workstation became more practical as the partnership between FaxSav Inc. and RightFAX Inc. was formed last month. Third party manufacturers and developers can now link to the FaxSav Global Network over the Internet through the FaxSav ServerLink programming interface. According to an industry spokeswoman, RightFAX software allows faxing to be launched from a workstation while the processing is prepared at the fax server computer. The fax document is then sent via the FaxSav Global Network. The whole process takes place at a much lower cost to the user than if transmitted over conventional telephone systems.

Topic 19

/// Gateway To Acquire Advanced Logic Research /// -------------------------------------------------- Gateway 2000 Inc. announced plans last month to buy Advanced Logic Research Inc. (ALR) for a cool $194 million. The buy out gives Gateway direct access to high-end server products complete with a network of approximately 5,000 value- added resellers that specialize in, and support those high-end machines. Gateway will in turn employ the resellers to market its desktop and notebook computers. According to some inside sources however, Gateway's main strategy in the deal is to use the ALR distribution channel to gain a better foothold within the corporate market. By the end of this month, ALR's $194 million cash offer should be finalized, whereby ALR will then become a subsidiary of Gateway 2000, but will continue to market its own brand name products.

Topic 20

/// IBM And Others Target Sun With Their Net PC /// --------------------------------------------------- A $900 Java computer is about to be launched by IBM Corp. that is designed to compete with similar units offered by Sun Micro- systems Inc. Arriving this fall, the IBM computer will contain support for a smart card, which can be programmed by its resellers and systems administrators to customize configuration and security aspects of the system. According to an IBM spokesman, the primary processor in the computers will be a RISC-based PowerPC 603 chip. Corel Corp. is also reportedly hard at work on Java-based net- work computers, and is expected to ship samples of two new products within a month. An executive at Corel related that one model will be a desktop configuration while the other one will be a notebook. Both computers however, will employ a DEC StrongARM 230-MHz processor and a video compression chip to aid in better graphics display and multimedia functions. When Corel's first production units ship in October, the desktop PC will be priced at about $700 while the notebook model should sell for approximately $2,700. Intel Corp. heralded its Net PC at the New York PC Expo last month, and is boasting support from 12 leading hardware vendors, which include Hewlett-Packard Co., Compaq Computer, Acer America, IBM Corp., and several others. The Intel system is based on the sealed-case concept that typically contains a Pentium-class CPU chip, but no floppy drive, no CD-ROM drive, and no expansion slots. A small hard disk storage device may be included for the $1000 to $1,300 asking price. With such spartan components, it is no wonder that the industry forecasters are spotting the Net PC to take less than 10 percent of the computer sales orders by the year 2000.

Topic 21

/// Multimedia Vendors Confront Audio Priority /// -------------------------------------------------- An indication of the realization by the multimedia vendors for the need to develop better audio solutions in the emerging DVD (digital virtual disk) market occurred last month as Gateway 2000 Inc. introduced its DVD-enabled Destination PC. The "PC in the living room" concept still needs a boost, and quite a few vendors are competing for the entitlement to decode the video [and] audio for DVD products. At stake are devices ranging from the host system processor to associated graphics chips supporting MPEG-2 and AC-3 decoders. Gateway has picked the Mpact media processor, which is produced by Chromatic Research at Sunnyvale, Calif. as its decoder for the Destination PC. Other vendors are looking at products from chip makers such as ATI Technologies, ESS Technology Inc., and SGS-Thomson Microelectronics for high-end audio devices to use within their DVD machines. The common driving force within the industry is a sense of urgency to get the products developed and into the market as soon as possible, according to the analysts. ATI Technologies is offering the 3D Rage II+DVD graphics chip, which decodes video with the aid of the host processor and a third-party audio decoder. A major competitor to ATI, S3 Inc., has entered the field with its "SonicVibes" decoder chip. These video/graphics vendors, with the addition of Cirrus Logic Inc., have licensed the A3D sound algorithm from Aureal Semiconductor Inc., Freemont, Calif. The A3D technology deceives the human ear into believing that the sound produced by just one pair of speakers is authentic surround sound. Reports indicate that Intel Corp. has been working behind the scene with software vendors to help them optimize their code for the Pentium II CPU chip by sending engineers to the vendors locations for periods of days to weeks. An Intel spokesman hinted that a Pentium II running at 266-MHz on the clock will be able to generate video at 24 frames per second while de- coding A3D and MPEG-2 information by the end of this year.

Topic 22

/// Digital Imaging Technology From Kodak & Motorola /// ------------------------------------------------------- Eastman Kodak Co. and Motorola's Semiconductor Products Sector have partnered to develop the ACI (Advanced CMOS Imager) tech- nology for use in digital products such as the new breed of digital cameras. With production slated for early next year, the two companies expect to provide a high-performance, low-cost solution to compete with current CCD (charge-coupled device)-powered units. One market analyst predicted that if the new technology is developed fast enough, and the acceptance by the consumer meets expectations, sales of ACI devices could grow to as much as $14 million by the year 2000.

Topic 23

/// Blue Laser Shows Promise For Storage Devices /// ---------------------------------------------------- An electrically pulsed gallium nitride-based blue laser has been exhibited by Cree Research Inc. that shows promise for use in high-capacity optical storage devices. Devices based on this technology could render a storage capacity of four to five times that of existing red and infrared lasers because of the sizable difference in wavelength. Cree has been laboring over the blue laser project for more than two years, and was finally able to demonstrate the unit last month.

Topic 24

/// Optic Cables On Budget Prices /// ------------------------------------ TV Cable providers and telephone companies alike are promising to equip their customers with the high-quality, interference- free service that can only be accomplished through fiber optic technology. But it is not going to happen until the price comes down. According to industry sources, as long as conventional glass optical fiber is used, that may never happen. However, with plastic fiber optical cable, it may soon become a reality. Plastic optical fiber (POF) offers important advantages over glass. The number one factor is price. Secondly, POF is easier to splice and install. Using low-cost LED technology, POF can transmit data at 3 Gigabits per second or better. All the advantages of glass cable such as reliability, high- performance, and immunity to static and EMI (electro-magnetic interference) are offered with POF. And with the ratification of the POF ATM (asynchronous transfer mode) Forum standard in April, the data communications market stands ready to deploy the POF technology. The new broadband systems supporting POF are predicted to supply service to and from the user more efficiently than even that of a cable modem. All indications show that there is a large market for POF, and an abundance of support from leaders in the tele-communications industry such as Adaptec Inc., Apple Computer Inc., Compaq Computer Corp., Digital Electronics Corp., IBM Corp., Intel Corp., Microsoft Corp., Sun Microsystems Inc., and others.

Topic 25

/// 3Q Shows AMD K6 Is Gaining Ground /// ----------------------------------------- AMD (Advanced Micro Devices) is slowly-but-surely gaining ground in its climb toward the top of the PC microprocessor market as the recently introduced K6 chip takes hold in sales to OEM (original equipment manufacturers) customers. Contracts have been drawn up with computer industry leaders such as Digital Equipment Corp., Toshiba Corp., Hewlett-Packard Co., and Compaq Computer Corp., according to an article printed last month by EBN magazine. Some sources have said that Intel Corp. has finally realized that it has some heavy competition in the processor chip market as indicated by across the board price cuts of its CPU chips from 10 percent to 52 percent allocated to its OEM customers. A decrease in the demand for PC systems in general coupled with the substantial market gain accumulated by AMD and Cyrix Corp. may have prompted Intel to slash its prices.

Topic 26

/// Fingerprint Chip Demonstrated By ST /// ------------------------------------------- A single prototype chip was demonstrated by SGS-Thomson (ST) that can catalog the pattern of a human fingerprint. By detect- ing the variations in the electrical currents along the ridges and valleys of the skin through a sensor array, a fingerprint pattern is generated without the use of optical or mechanical devices. The chip alone can produce an electrical illustration of the authentic fingerprint. Intended uses for the technology include security and I.D. applications, possibly through smart cards and card reader systems.

Topic 27

/// The Bottom Line /// ------------------------------------------ /// SECOND COMPANY TO DEFY CLINTON EXPORT RULES /// In the June issue of the GrapeVine we reported that Sun Micro- systems Inc. had found a way around the Clinton administration's ban on the export of encryption technology by re-distributing the Elvis+ software from Moscow, which has a 128-bit encryption key-- well above the 56-bit limit imposed by our friends in Washington. Now a second U.S. software company is asserting itself against the restrictive White House rules, which have up to now stymieed our vendors who had to just sit on the sidelines and watch the foreign competition eat up the global encryption business. That second astute U.S. company is known as Sybase Inc., and is located in Emeryville, Calif. Their software contains only a 56-bit encryption key word, but does not contain the key escrow trapdoor that was originally demanded by Washington. A major blow was dealt to the good guys, however, when the Senate Commerce Science and transportation Committee approved a bill that upheld the Clinton administration's controversial key- escrow requirement for state-of-the-art computer systems last month. Then there is the FBI attempting to use its newly acquired powers to coerce an accordance with the key-escrow recovery scheme, much to the dismay of the U.S. software vendors and international banking industry. The House Judiciary Committee, on the other hand, has countered with a bill proposing to kill the key-escrow trap door. You can be sure that I will keep my eyes and ears open for any new updates on this issue, and the anticipated repercussions from the Clinton administration. @@@@@@@@@@@@@@@@@@@@@@@@ Gary Miller


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