Gigabyte GrapeVine

////////////////////////////////////////////////////////////////
Vol. 2, Issue 11 (c)1996 GKM Journals Nov. 1997
////////////////////////////////////////////////////////////////

This month's GrapeVine was acquired from segments of information and articles published in selected computer and electronics industry trade publications in addition to several online sources. The information contained within is comprised mostly of factual information, editorial comments, and a few rumors from the electronics industry in general.

Each month, we will try to focus on items of interest related to the computer/electronics industries as they become news- worthy, and hopefully, the GrapeVine will be both informative and entertaining to our readers.

Topical Index

Topic 01. Prompt Software Offers Super Search-Engine Topic 02. Dumping Penalties Assessed Against Taiwanese Topic 03. House Committee Spurns Encryption Trapdoor Topic 04. Microsoft Gambles Heavy On NT 5.0 Topic 05. Fast Internet Access via DirecPC Satellite Topic 06. Government Acknowledges Pirated Software Use Topic 07. Sceptre LCD Monitor Prices Becoming More Realistic Topic 08. 100x CD-ROM Drive Shipping From EliteGroup Topic 09. Web Page Technology Tested By Intel Topic 10. Microsoft Wants Bigger Cut Of The Browser Pie Topic 11. Antivirus Top Guns Offer New Products Topic 12. Videoconferencing On A Laptop Topic 13. Microsoft/Sun Cold War Turns Hot Topic 14. Secure E-Shopping On CompuServe Topic 15. Nader Leads Campaign Against Microsoft Topic 16. IBM/Motorola Announce Chip Process Breakthroughs Topic 17. Digital Offers Double-Speed File Servers Topic 18. Wintel Platform Could Hurt Audio Chip Makers Topic 19. MasterCard Causes Encryption Worries Topic 20. Rockwell Joins HDSL2 Alliance Supporting T1 Speed Topic 21. Hard Drives At Bargain Prices Topic 22. Big 3 Korean DRAM Makers Are Backing Rambus Topic 23. U.S. Chip Industry Would Suffer Under Emissions Tax Topic 24. High-Tech Age Pulls Switch On Switches Topic 25. Intel To Buy Corollary To Gain 8-Chip Architecture Topic 26. The Second Generation Of Intel's Next-Generation Chip Topic 27. PC-based Internet Phone Calls Possible With NTC Topic 28. GTE Offers $28 Million Cash For MCI Topic 29. Apple's Rhapsody O/S For Intel Machines Is Near Topic 30. Excel 97 Recalculation Bug Admitted By Microsoft Topic 31. Windows 95 Will Get Face Lift Topic 32. Intel & Microsoft Give Preview Of Digital TV Topic 33. Centaur Offers Low-Cost MMX Chips Topic 34. New Chip-Set Targeted Toward GPS Markets Topic 35. Federal Grand Jury To Probe IBM Sales To Russia Topic 36. Have CD-ROMs Become Obsolete? Topic 37. Dell AC Adapters Pose Shock Hazard Topic 38. Sony Poses Challenge To Floppy & ZIP Markets November GrapeVine Bottom Line Feature Story... Topic 39. Janet Reno Hits Microsoft With $1 Million Per Day Fine ////////////////////////////////////////////////////////////////

Topic 1

/// Prompt Software Offers Super Search-Engine /// As useful as they are, search engines have always required the user to access them one at a time-- until now, that is. Prompt Software, Novato, California, has just released its Web- Sleuth application that can access as many as 13 Internet search engines at once. WebSleuth compiles an index of words that the user can apply to any range of search topics. Single words or complex Boolean inquiries are permitted to launch a search. The user can select exactly what and how much information is desired with the option of a quick search with lesser results, or a more time consuming thorough search, which offers optimum results. All-in-all, there are 20 ways within WebSleuth to define a search. And when the desired results are obtained, the search format can be saved so that the whole process does not have to be set up again if the same catagory needs to be sought out repeatedly.

Topic 2

/// Dumping Penalties Assessed Against Taiwanese /// The U.S. Commerce Department levied anti-dumping duties of up to 113.85 percent against 19 Taiwanese and three South Korean SRAM (static random access memory) manufacturers. Because of the action taken by the Commerce Dept. during the last week of Sep., some experts predict there will be even greater confusion in the already troubled SRAM market. It was noted by news sources that in addition to the Asian malefactors, two U.S. companies may also be fined. Alliance Semiconductor Inc. and Integrated Silicon Solutions Inc. are also being held accountable after the Commerce Dept. responded to a petition filed by Micron Technology Inc., which accused the SRAM vendors of illegal dumping of the chips into the U.S. market in 1996. A final decision will be made by the agency regarding the dumping charges sometime within the next five months, according to sources. The case then would go to the U.S. International Trade Commission to determine whether the dumping actions had any detrimental effects upon the U.S. industry. The South Korean and Taiwanese vendors are expected to take the chance that they will escape any [severe] dumping penalties, and just wait out the litigation process. Some price adjustment will occur during the legal process, but a detailed production cost evaluation has not been completed by the federal agency due to lack of resources, as stated by one government official.

Topic 3

/// House Committee Spurns Encryption Trapdoor /// The House Commerce Committee rejected the proposed mandate that a key-escrow trapdoor be placed in all computer encryption systems used in the U.S. or shipped for export. FBI director, Louis Freeh, has been trying to pressure Congress to adopt the Clinton/Gore policy to extend the key-escrow man- date to all encryption systems sold in the U.S. so that law- enforcement agencies can decipher encoded messages intercepted by wiretaps. The National Security Agency has joined with the FBI in its support of the White House position on the issue.

Topic 4

/// Microsoft Gambles Heavy On NT 5.0 /// Microsoft Corp. may be betting the farm on Windows NT Server 5.0, as noted by Computer Reseller News last month. Executives from Microsoft gave a sneak preview of upcoming Windows-based products at its Professional Developers Conference held in San Diego, where the beta version of Windows NT Server 5.0 was introduced as the "most comprehensive operating system the company has ever produced." On the matter of ship dates, the executives were not so overly confident. The second half of 1998 was their only projection for shipment of both NT 5.0 and Windows 98. One hardware manufacturer who was briefed my Microsoft concluded that a more realistic ship date would fall close to the fourth quarter of 1998. The Internet is the predominant theme of Windows NT 5.0, which has its own Internet Explorer 4.0 bundled within to integrate work flow between the Internet and the office PC and/or network. A common thread will become apparent to users of both Windows 95 and NT 5.0 in that they are based on the same technology. As noted by Microsoft officials, the idea is to unify both packages in the areas of desktop environment and Internet communications. NT 5.0 and Windows 98 now share the same user interface, driver model, and Web browser. As far as marketing strategy, Microsoft will be focusing NT 5.0 toward their business users, while Windows 98 will cover the needs of the general consumer market.

Topic 5

/// Fast Internet Access via DirecPC Satellite /// DirecPC from Hughes Network Systems can bring fast Internet access to your PC, but it does come at a price. Purchased by itself, DirecPC can be picked up for $399. As the DurecDuo package, which also includes DirecTV, you will have to pay $899. Both DirecTV and USSB satellite broadcasts can be received through the 20" x 36" satellite dish antenna kit. The package also includes a plug-in interface card for your PC and Windows 95 "DirecPC" software to link the user to the information transmitted from the DirecTV and DirecPC satellites. But that is only the initial cost of getting on line with the satellite system. You must also have an ISP (Internet Service Provider) so that you can [send] e-mail through those plain old telephone lines. Now we add the monthly charges. $19.95 per month will give you weekend only access, which will penalize you $0.50 per megabyte if you dare to download during a normal week day. If you pay $39.95 per month, and $.80 per megabyte, you can have unlimited access during evenings to the 200-Kbit per second service, and a boost up to 400-Kbit/s during the weekends. But if you want true unlimited (24-Hr.) Internet service, you will be charged $129.95 per month as advertised by Hughes. However, there are some instances where the Hughes satellite system may actually be a practical alternative. The DirecPC service could be cost effective in remote areas where telephone lines are extremely noisy, and/or there is no cable provider to offer an alternative to the very expensive ISDN telephone lines. In some areas of the planet, ISDN line service costs as much as $150 per month while offering access speeds of only 128-Kbit/s compared to DirecPC's 400-Kbit/s.

Topic 6

/// Government Acknowledges Pirated Software Use /// A representative of the Software Publishers Association gave testimony before members of the House Subcommittee on Courts and Intellectual Property last month that she wanted to bring to their attention the use of unauthorized and undocumented software on government computer systems. Sandra Sellers of the SPA reported on a 1993 Department of Defense disclosure of an audit report on controls over licensed software, where it found 1,381 copies of unauthorized or un- documented software installed on 51 percent of its computers. After almost four years, no follow-up or departmental directive has been issued to enforce compliance with the copyright laws, said Sellers. Her testimony to congress came just one day after VP Al Gore visited the SPA's annual conference in D.C., where he proclaimed an executive directive to ensure that all federal agencies will use only legally installed and licensed computer software.

Topic 7

/// Sceptre LCD Monitor Prices Becoming More Realistic /// It had been a while since I had seen or heard anything from the LCD (liquid crystal display) / FPD (flat-panel display) industry that indicated more realistic prices for the home PC user-- so I visited the Web site of Sceptre Technologies, and found some good news. While their LT12 line of 12" color monitors and their 15" FT15 displays are still priced well above comparable sizes in the more traditional CRT (cathode-ray tube) units, new advances in production and a competitive FPD market have apparently prompted Sceptre and others to lower their prices without cutting corners or quality. The LT12 model line uses TFT (thin-film transistor) active- matrix LCD (AM-LCD) technology to generate an 800 x 600 pixel resolution 12.1" display. The number of colors supported by the LT12 is 262,144. Dimensions of the 12" monitor are: 13" W x 12.9"H x 10"D with base. Weight of the unit is just 9 lbs. It is available in case colors of Beige or White. The LT12 has a retail price of $1589, and is compatible with most modern video standards such as VGA (Video Graphics Array) and SVGA (Super VGA), and carries a one year warranty. The 15" FT15 series offers the same space saving, flicker-free, static-free, and energy saving features as the 12" models along with the zero radiation safety factor afforded by all FPD/LCD devices, but with the addition of stereo speakers. The 14.5" Viewable Diagonal TFT Screen on the FT15 supports up to 16.7 million colors at a resolution of 1024 x 768 with a pixel dot pitch of .288. In addition to IBM-PC compatibility, the FT15 is also designed to operate as an Apple Mac display. Overall dimensions of the 15" models are 15.5"W x 13"H x 2.5"D, 15.5 x 16 x 7" with base. (Panel & Base are Detachable) Weight (lbs.): 16 Gross, 12.8 Net, 7.5 Net without base (Panel and Base detachable) Warranty: 1 year parts and Labor Suggested retail price: $2795 Sceptre manufacturers their FPD monitors with case colors of black, white, grey, and beige. More information on the complete line of Sceptre monitors can be found on the company's Web site at: www.sceptretech.com

Topic 8

/// 100x CD-ROM Drive Shipping From EliteGroup /// Just when we thought the 32x CD-ROM drive was state-of-the-art, a company in California called EliteGroup Computer Systems Inc. appears ready to blow away the other speedsters with its Smart 100x machine. By employing its proprietary accelerator software, which can designate unused space on your hard drive as a "buffer," the Smart 100x will deliver actual 100x operating speed. No special controller card or other devices are required other than that your hard drive has 650 to 700-Megabytes of free space available to be used as the buffer. If there is only 250-MB of free space on the hard drive, the 100x unit will still perform at a brisk 40x speed. The 100x speed translates to data transfer rates of up to 33.3 MB per second and an access time of only 10-ms. The unit is designed to run under the Windows 95 operating system using an industry standard enhanced IDE (Integrated Drive Electronics) controller. A phone call to one of their distributors revealed that the street price of the Smart 100x should be in the $100 range. More technical information can be obtained on the company's Web site at: www.ecsusa.com

Topic 9

/// Web Page Technology Tested By Intel /// Intel Corp. began testing of a technology to improve the speed in which Web pages are delivered. The tests are being run for Intel by selected Internet Service Providers (ISPs) on "Quick Web Technology," which Intel is billing as a way to enhance Internet use. Netcom On-Line Communications Services Inc., GlobalCenter, and Sprint conducted market tests of the technology last month, which involved about 1,200 customers. The Quick Web service should be ready for the general market through licensed ISPs by the end of this year. Intel reportedly has been working on the technology for almost five years, and has added its Multimedia Extensions (MMX) architecture to the package. The Quick Web concept is based on software that examines Inter- net Web pages, then searches for graphic images and compresses them by stripping any unnecessary data bits. Intel has already completed its own tests with Quick Web, and found a significant increase in performance, but according to one industry analyst, the company wants to wait until the market testing is complete so that the gain in performance can be verified, as stated by Intel's manager for the Quick Web Technology, David Preston.

Topic 10

/// Microsoft Wants Bigger Cut Of The Browser Pie /// A top Microsoft executive has predicted that his company's Internet Explorer 4.0 will elevate its Internet browser sales to above the 50 percent share of the market. Microsoft browser sales took a big jump from 8 percent up to 30 percent of the market last year after the launch of Internet Explorer 3.0, as stated in one market report. Now the Redmond, Washington-based company hopes to take an even bigger share away from its main competitor, Netscape Communications. Netscape, Mountain View, California, has been rated as the top dog in Internet browser software up to now, but Microsoft executives think they will be the all-out champions this time around. In an effort to bolster its position, Netscape has increased its base of partners by signing a pact with the Internet service division of America Online Inc. A new service called AOL Instant Messenger will be launched from the partnership to allow Internet users to instantly send and receive messages unconstrained and not limited to any one particular Internet service provider (ISP) or online service. Microsoft's legal problems may take some edge off its claim to fame in the browser market if the company does not fare to well in its battle with the U.S. Department of Justice. [See this month's /// Bottom Line /// for more details.]

Topic 11

/// Antivirus Top Guns Offer New Products /// The antivirus software vendors of McAfee Associates Inc., and Symantek Corp. have introduced new virus protection software, but each company has taken a different approach to the solution. Symantek, which produces the Norton AntiVirus 4.0 package for Windows-based computers and Windows NT-based server systems, has incorporated software that seeks out and repairs uncoded viruses, checks updated virus lists by E-mail, and employs a "Repair Wizard" for virus cleanup. The strongest feature of NAV 4.0 may be its "Set it and Forget it" feature, which permits live updates to be scheduled. Also on the plus side is the ability to detect and analyze new and unknown viruses, and then repair them through the Symantek "Bloodhound" technology. McAfee is marketing its Total Virus Defense Suite, which combines the McAfee VirusScan and NetShield Security Suites that together give protection to multi-tiered enterprise networks and Internet gateways. McAfee notes that this package will secure systems against both viruses and hackers. Centralized security management and virus tracking software within the TVD Suite operates through McAfee's virus detection "Hunter Engine" that allows use of encryption, while providing firewall protection and backup capability.

Topic 12

/// Videoconferencing On A Laptop /// The new PM-S122 Clip-On camera for notebook computers has been introduced by Panasonic Computer Peripheral Co. as the first all-in-one audio/videoconferencing solution. The PM-S122 just clips onto the display screen of a notebook PC, and plugs in through a standard PC-Card slot to get your voice and your pretty face online in almost no time at all. Images with a resolution of 542 x 497 or 300 TV-mode lines are listed among the performance specifications, which also includes full motion video at 12 frames per second over the Internet when used with a 33.6-Kb/s modem. Definitely not 3-D game quality, but it should get the job done. A headset with a microphone and earphones is included with the camera, and quite a list of hardware and software items are included to give the user all the essentials to get online. A video capture board and software from Micro Software Inc. and White Pine Software Inc. (CU-SeeMe) will get the user set up for realtime audio/video communications. If your laptop PC has at least 16-Mbytes of memory and operates under Windows 95, all you have to do is spend the $549 asking price, and you can join the world of mobil videoconferencing.

Topic 13

/// Microsoft/Sun Cold War Turns Hot /// A legal battle embroiled between Microsoft Corp. and Sun Micro- systems Inc. last month over whether Microsoft violated Sun's Java license parameters. Sun, the developer of the Java programming language, has brought suit against Microsoft alleging trademark infringement, breach of contract, false advertising, inducing breach of contract, interference with prospective economic advantage, and unfair competition. About mid-October, Sun's Javasoft division asked that Microsoft make its license public, and offered to publish it, if given written permission. One Javasoft official stated that E-mail response on the issue is running about 6 to 1 in favor of Sun, and that several developers have offered to testify on their behalf. Microsoft, however, continues to deny the charges levied by Sun, and said it was willing to publish the terms of the contract to make it easier for users and developers to decide for themselves whether or not Sun's terms were violated. The accusation by Sun states that Microsoft has omitted two key parts of the Java Developers Kit 1.1 from Internet Explorer and its associated development kit. The two key parts are listed as: the Java Native Interface, which can access native code of an operating system; and the Remote Method Invocation segment that allows applets to communicate across dissimilar operating systems or computer systems. Another accusation by Sun claims that Microsoft modified public Java Application Programming Interfaces in an attempt to mislead developers into writing Java applications that would only run on Internet Explorer. An article in the Oct. 13 Computer Reseller News (CRN) noted that according to the suit, Microsoft Corp. had 20 days from Oct. 7, 1997 to respond to the charges. By Oct. 20, a news report from Redmond, Washington noted that in a surprise legal move, both companies posted the full 13,360-word text of the disputed agreement on their Web sites. Both Microsoft and Sun are claiming that the posted document substantiates their position in the legal conflict.

Topic 14

/// Secure E-Shopping On CompuServe /// The Columbus, Ohio-based Internet service provider, CompuServe, has partnered with NetSales, an electronic-commerce provider to set up the CompuServe Computing Shop, which will operate as an online Internet store. A variety of delivery options and products will be offered to the PC consumer. The online transactions are apparently secure through the SSL (Secure Sockets Layer) protocol as identified by the version of Netscape running in my office. You can visit the CompuServe Computing Shop at: www.computingshop.com

Topic 15

/// Nader Leads Campaign Against Microsoft /// A consumer watchdog group, led by consumer advocate, Ralph Nader, circulated a petition last month that asked the U.S. Department of Justice to investigate claims that Microsoft Corp. is engaging in "predatory" pricing and illegal bundling of its Internet Explorer browser software. Named, the Consumer Project on Technology, the group began an online petition campaign asking the Justice Dept. to protect the consumer by taking action to prevent Microsoft from employing such tactics that tend to monopolize the Internet browser market. The Justice Dept. apparently heeded the call by Nader's group in that Attorney General, Janet Reno, asked for an unprecedented $1 million per day fine be set against the software giant in a surprise announcement on October 20. [See this month's GrapeVine /// Bottom Line /// topic] The $150 million investment by Microsoft into Apple Computer Inc. may become another thorn in Microsoft's side as the Justice Dept. continues its investigation into that matter.

Topic 16

/// IBM/Motorola Announce Chip Process Breakthroughs /// New semiconductor manufacturing technology breakthroughs from research teams at IBM Corp. and Motorola Inc. will allow them to use copper for the circuits built into silicon wafers for now, but processor chips based on aluminum will go into prod- uction sometime next year. The copper/aluminum process in conjunction with Extreme Ultra Violet lithography (EUV) technology that etches the minute circuit traces into the silicon, will expedite the semiconductor manufacturing industry in its move into the next century, as noted by one industry analyst. Corporations such as Intel Corp., Motorola Inc., and Advanced Micro Devices Inc. are sharing their resources to propel the EUV process to the state where lines smaller than 0.1-micron widths are possible for silicon lithography. When it comes to circuit characteristics, copper is a better conductor than aluminum, but it is more easily contaminated than aluminum, which up to now has been a hinderence to using it for the manufacture of semiconductors and processor chips.

Topic 17

/// Digital Offers Double-Speed File Servers /// Two new AlphaServer file server computers are shipping from Digital Equipment Corp. (DEC) that are billed as offering more than twice the speed of conventional servers. According to Digital executives, the AlphaServer 8400 can run up to 14 DEC 64-bit Alpha processor chips, churning out a quick 612-MHz speed on the clock. The 8400, which is now available, is priced at $174,000. The AlphaServer 8200 version features two of DEC's 21264/612-MHz processors and one full gigabyte of memory on board at a price of $125,000.

Topic 18

/// Wintel Platform Could Hurt Audio Chip Makers /// Some industry authorities seem to think that the Windows/Intel (Wintel) standards recently announced may steal a major portion of the PC audio technology market away from the audio chip manufacturers. Two technology developments by both Microsoft Corp. and Intel Corp. may have some impact on the audio chip market, but it remains to be seen as to just how much. Microsoft has chosen to eliminate the need for "SoundBlaster" compliant hardware, while Intel announced its version 2.0 of the Audio Codec 97 (AC97) specification, which assigns a portion of the AC97 processor chip set to decode digital audio in- formation. Between the AC97 chip set and the Windows 98 software audio solution, it does give the audio chip vendors something to worry about. Other analysts were less alarmed by the two announcements, however. They are noting the fact that audio vendors can still make money by adding higher-end features such as head-related transfer function (HRTF) spatial audio or quality wavetable synthesized music. On the software side of the situation, Microsoft Corp. and Oak Technology Inc. plan to announce a jointly developed software driver that is supported by the Win32 Driver Model as used in Windows 98. The audio chip makers contend that until Microsoft can better prove PC system compatibility, buyers should stay with the more conventional hardware approach to audio.

Topic 19

/// MasterCard Causes Encryption Worries /// With the introduction of a new bank card by MasterCard Inter- national, new encryption anxieties are expressed by those who side with the U.S. government's position on export rules. MasterCard began testing a card last month through 40 branches of its banks, that contains an embedded encryption chip designed by Mondex International of London. The company expects about 18 other credit card or financial institutions around the globe will also begin testing of the product in the near future, with five million Mondex-based cards predicted to be in use by the end of next year. The actual encryption chip is made by Hitachi Ltd., and contains an encryption level higher than the Clinton administration's rules allow. Although Hitachi officials declined to specify the exact level of encryption, it is assumed to be higher than the specified 56-bit level, and apparently has no key-escrow "trapdoor" to allow access by U.S. law enforcement personnel. A broader range of customers will be targeted by MasterCard as its plans develop to apply the technology to non-financial markets such as encrypted medical/health data, commercial ID systems, toll booth and assorted travel payments, and Internet commerce. With each device requiring its own encryption key, as many as one billion sets of keys may be involved, and that could make enforcement of the U.S. encryption rules almost impossible, according to MasterCard Senior VP of security, Joel Lisker. It also appears that since the chip is manufactured in Japan, the U.S. government has very little power to prohibit it from being installed in similar products around the globe, whether those products are smart cards or telecommunications devices. One U.S. government spokesman said that they are planning to carefully study the circumstances before making any ruling on MasterCard's new product.

Topic 20

/// Rockwell Joins HDSL2 Alliance Supporting T1 Speed /// ADC Telecommunications Inc., PairGain Technologies Inc., and Level One Communications have been joined by Rockwell Semi- conductor Systems to develop and expedite the application of HDSL2 (High-bit-rate Digital Subscriber Line) technology. The new technology is said to offer performance levels of the T1 standard, but at a much lower cost resulting from the use of only a single twisted-pair cable as opposed to the two twisted-pair cables required to complete a two-way transmission over a HDSL T1-based system. A proposal by the Alliance was issued in June to the American National Standards Institute (ANSI), which called for a unified suite of line code, modulation and error correction standards to be mandated for the HDSL2 platform. The name assigned to the proposal is a real mouthful-- Overlapped PAM Transmission with Interlocking Spectra (OPTIS). Rockwell agreed to contribute to the efforts of the alliance and acknowledged the proposal to ANSI last month.

Topic 21

/// Hard Drives At Bargain Prices /// If you hurry, you may be able to take advantage of the quandary facing both Seagate Technology Inc. and Western Digital Corp. as they try to recover from their over-stocked inventories. The two hard drive vendors have been sharply dropping prices in an effort to put a dent into the glut of inventory that resulted from late September errors in estimating production requirements of low-end (1.2-Gigabyte to 1.6-Gb) drives. But the market analysts predict that while the resulting price war may appear to be fierce, it is not expected to last. Both companies have now drastically cut back on production to correct the situation and stabilize the low-end hard drive market.

Topic 22

/// Big 3 Korean DRAM Makers Are Backing Rambus /// The Direct Rambus DRAM (RDRAM) computer memory architecture won another campaign against the competing SLDRAM (Synchronous-Link Dynamic RAM) last month when South Korea's big three DRAM makers announced their support of the new memory technology. Sources are hinting that RDRAM will be the dominant PC memory architecture for the next decade, which probably rankles the supporters of the NEC Corp./Hitachi Ltd. SLDRAM option. Hyundai Electronics Industries Co. Ltd., LG Semicon Co. Ltd., and Samsung Electronics Co. Ltd. of South Korea have confirmed plans to manufacture RDRAM modules within the next year, but announced no such plans to build SLDRAM-based products. The Intel-backed Rambus Inc., which is based in Mountain View, California, seems to be making a clean sweep of the emerging PC memory market with the addition of the Korean big 3 DRAM vendors lending their support. But this in no way rules out other high- speed memory architectures from being successful in other realms of the computer industry such as corporate servers and work- stations, as stated by several market observers.

Topic 23

/// U.S. Chip Industry Would Suffer Under Emissions Tax /// Sources within the U.S. semiconductor industry said they are very troubled by the possibility that another tax burden will be placed upon them. The potential tax could develop from the outcome of the "Global Warming" discussion set to take place this December in Kyoto, Japan as representatives of numerous world governments gather to supposedly iron out an agreement on gas emissions regulations. While much of the discussion will focus on carbon dioxide, other potentially harmful gases such as PFCs (perflourocarbons) may become part of the agenda. This is of great concern to the U.S. semiconductor industry because-- while PFCs are used throughout the entire world, only the "developed" countries such as the United States, will be forced to comply with the proposed rules. U.S companies would be required to pick up the tab for exempted countries such as Brazil, South Korea, and several Southeast Asian nations. It would become another unjustified trade handicap against the United States, as expressed by our industry sources. * Editorial Note * As more [unbiased] scientific information is gathered, it would appear that all the "global warming" rhetoric has become no more than a political scheme to promote what some would call the UN agenda. It has been recognized by many scientists since 1991 that the sun is emitting two new powerful spectral bands of energy (radiation). Some experts thought at first that this would have little affect upon planet earth, but that opinion has changed in light of new studies. Now, these new findings have led some scientists to reclassify our sun from a "stable" star to a "variable-output" star. What's more, one news caster said that it was thought among those studying this situation that this additional energy from the sun is what is causing "El Nino" to stir up the abnormal weather patterns we are witnessing right now. According to them, this is a natural part of earth's climatic cycles, and has been going on for thousands of years. It is apparent that our world leaders need to take more time to initiate actual scientific investigations into this whole scenario before we put all the blame on the human element. **

Topic 24

/// High-Tech Age Pulls Switch On Switches /// It has become apparent to those within the electronics industry that the old electromechanical switch has been loosing ground to the newer technologies to control power. Even relatively modern devices like the DIP switch that we see mounted on everything from garage door openers to PC peripherals are being tossed aside in favor of various types of "sensors." A spokesman from Cherry Corp., a prominent switch and component manufacturer, said that "Hall-Effect" sensors are now popular switching devices because of their low power consumption and speed. Optical encoders have been replacing rotary switches for some time now in market areas such as medical devices, consumer goods, military applications, and laboratory testing. The optical encoder also offers a life-cycle of operations 100 times greater than older switch technologies. One trade report mentioned that with the increase in firmware (chip-based devices), there is no longer a need for DIP switches to be mounted on board-level products because the switching tasks can now be done through software and micro-chips.

Topic 25

/// Intel To Buy Corollary To Gain 8-Chip Architecture /// A press release from Santa Clara, California, dated 09/30/97, stated that Intel Corporation had announced that it entered into an agreement to acquire Corollary Inc., of Irvine, Calif., a privately held supplier of Intel Architecture-based multi- processing technology. The Corollary Profusion architecture employs a unique cache- coherent, buffered cross-bar switch design that effectively harnesses the performance of up to eight microprocessors. Intel apparently aims to expedite the availability of Corollary's 8-way server technology, which is based on Intel architecture. Industry sources said that the move by Intel will maneuver the processor giant into a better position in the high-end server markets.

Topic 26

/// The Second Generation Of Intel's Next-Generation Chip /// The high-end 64-bit "Merced" microprocessor chip from Intel, which is not expected to ship in volume until 1999, already has its successor on the drawing board. In the year 2001, Intel plans to introduce its second generation IA-64 chips that will perform twice as fast as the forthcoming Merced processors. Within that architecture, will be a multi- processing technology referred to by Intel as EPIC (Explicit Parallel Instruction Computing), which will allow the new chip to execute multiple instructions simultaneously. The Merced chip will be a product resulting from the joint research efforts of Intel Corp. and Hewlett-Packard Co., and will be sold primarily to power high-end servers and work- stations. For the consumer PC market, Intel will further develop its 32-bit architecture, according to company sources. One of Intel's rival chip vendors, Advanced Micro Devices Inc., does not believe that there will be enough software written for the 64-bit platform by the year 1999, and will be banking on its 32-bit K7 product, which will utilize the Alpha EV-6 bus interface developed by Digital Equipment Corp. The K7, however, will be built in a modular form that according to AMD executives, will be interchangeable with Intel's Slot 1 module.

Topic 27

/// PC-based Internet Phone Calls Possible With NTC // PC users can make telephone calls through the Internet after they load in the new software from Networks Telephony Corp. The NTC software technology employs an algorithm called "Voice Acceleration, which prioritizes voice transmissions on the Internet. An October 2 news item said that NTC has picked CAIS Internet to be the Internet Service Provider (ISP) for the PC-based telephone technology. No price information was disclosed in the news story.

Topic 28

/// GTE Offers $28 Million Cash For MCI /// It seems that $28 million in cash is worth more to MCI Comm- unications Corp. than $30 million in stock, as offered by WorldCom Corp. in a proposed acquisition bid last month. After the offer was put on the table by WorldCom, GTE Corp. then trumped their bid with its $28 million cash proposal, which may be what some resellers and customers might benefit from in the long run, according to business analysts. GTE is recognized as a viable local-exchange carrier that came into existence before the Communications Act of 1996 was passed. And by providing local telephone service to about 29 states, long distance service to all 50 states, and Internet backbone to other ISP's throughout the country, GTE has earned a vote of confidence from many resellers who noted the company's vast Internet-applications research conducted by its Internetworking division gives GTE the edge over WorlCom and others who may tender an acquisition bid. Before the bidding frenzy between GTE and WorldCom took place, British Telecommunications PLC, which already owned 20 percent of MCI, had tendered an offer of $30 per share to buy all the remaining shares of the communications company. But that bid, when translated into monetary figures, only amounted to about $18 million, as noted by one financial authority.

Topic 29

/// Apple's Rhapsody O/S For Intel Machines Is Near /// Apple Computer Inc. is steadily moving forward with develop- ment of its Rhapsody operating system for Intel-based machines. The developer release of Rhapsody for the Mac and PowerPC-based computers was delivered early in Oct., with the x86/Intel version on the ready line and scheduled to ship to beta testers by the end of Oct. The basic structure of Rhapsody is built on the NextStep O/S acquired by Apple last year when it bought Next Software Inc. Apple sources revealed another version of Rhapsody may be in the works designed to work with the Alpha microprocessor from Digital Equipment Corp.

Topic 30

/// Excel 97 Recalculation Bug Admitted By Microsoft /// A story in the Oct. 20 issue of CRN disclosed that Microsoft Corp. has confirmed that its Excel 97 spreadsheet application is plagued by a defect that prevents automatic recalculation of some cells in a work sheet. As noted in the article, erroneous calculations could result that potentially lead to incorrect business decisions by a company using Excel. It was also mentioned that Microsoft engineers have already come up with a fix for the bug, and plan to have it ready to download from the company's Web site. Microsoft customers are also being notified of the problem through the Web. Details are posted on the [Office] Web site at: www.microsoft.com/office. Until the fix can be downloaded, Microsoft advises its Excel 97 customers to work around the problem by pressing [Ctrl] [Alt] [F9] to force all the worksheet cells to recalculate.

Topic 31

/// Windows 95 Will Get Face Lift /// In what amounts to cosmetic surgery for Microsoft's Windows 95 operating system, a stop-gap release named OSR 2.5 will go to market within the next month or two. A news article out of Redmond, Washington reported that the updated version of Windows 95 will have the "integrated" MS Explorer 4.0 desktop/browser code as developed for Windows 98. Other updates include: Microsoft Network clients, new AT&T and CompuServe Internet software, and a few other refinements over Windows 95. Some equipment manufacturers and resellers have questioned the strategy of this new release when Windows 98 is supposed to be just around the corner. [Could there be another delay of the new operating system that Bill Gates does not want us to know about?]

Topic 32

/// Intel & Microsoft Give Preview Of Digital TV /// Intel Corp. and Microsoft Corp. have planned a joint venture for 1998 to create a digital TV platform of their own. It was disclosed that the forthcoming Windows 98 operating system, when run on an Intel Pentium II-based PC, will be able to drive a multitude of new digital utilities. And with the addition of an $85 TV tuner board, the PC can then handle high- speed digital video transmitted by television broadcasters. The complement of Windows 95 and the Pentium II will be able to manage functions that at present would require other chips or add-on video boards to perform. This, according to some observers, may pose a threat to other multimedia chip-set and board vendors. The range of video services to be handled by Windows 98 is only speculation right now, but ties with DVD movies and digital TV have been mentioned. A spokesman for the Information Technology Council said that PC manufacturers are working on products for the 1998 holiday season that will utilize Windows 98 and the Pentium II chip to replace analog TV-sets in the home.

Topic 33

/// Centaur Offers Low-Cost MMX Chips /// Centaur Technology Inc., Santa Clara, California, will be offering its new C6 processor chip to equipment manufacturers and resellers as a low-cost alternative to the Intel Pentium MMX line. The Centaur chips will be marketed by Integrated Device Technology Inc. At present, the C6 comes in 180-MHz and 200-MHz versions that are MMX-compatible. A later release of the chips will be designated as C6+, and will add more x86 instruction code and increased MMX capabilities. The C6 architecture has also received certification from Microsoft for use with the Windows 95 operating system. Although production is limited right now to only sample volume, prices are still relatively low. The 180-MHz device is marked at $90, while the 200-MHz chip is priced at $139. Centaur expects volume production will remain low for some time, and will allow its distributors to determine end-user prices. Next year, the company will boost C6 clock speeds to 300-MHz and above if the predictions made by one spokesman comes true.

Topic 34

/// New Chip-Set Targeted Toward GPS Markets /// SiRF Technology Inc., a small chip maker located in Sunnyvale, California, has developed chip-set technology that it hopes will enable equipment manufacturers to produce low-cost GPS (Global Positioning System) consumer items. Called SiRFstar1/LX, the new architecture permits GPS to be embedded into small battery-operated devices such as personal locators, PDAs (Personal Digital Assistants), and cellular phones, where small confines and battery life are principal concerns. The first items in the parade of consumer GPS devices such as automotive navigation systems and hand-held locators have already seen some success, and production has been increased according to demand. In-car navigation receiver systems accounted for 1.4 million units shipped last year, according to an analyst from Dataquest Inc., who has predicted that by the year 2001, that market will grow to about 11 million units and $1.7 billion in revenue. A SiRF official stated that the LX architecture will lower power consumption by approximately 15 times as compared with his company's first GPS chip-sets produced in July. The SiRFstar1/LX chip set is composed of two basic devices and some built-in software. A front-end RF (radio frequency) chip and a GPS signal processor are integrated along with the GSW1/LX software to complete the chip set. According to one news source, SiRF plans to have the chip set in full production by the first quarter of 1998.

Topic 35

/// Federal Grand Jury To Probe IBM Sales To Russia /// Word from New York last month indicated that a federal grand jury is investigating the secret sale by IBM Corp. of 16 super- computers to a Russian nuclear weapons laboratory. Anonymous U.S. and Russian officials disclosed that the lab used Moscow-based intermediaries to acquire the computers last year, which was in violation of U.S. export rules. The reported sale delivered the computers to the laboratory in Arzamas-16. This is the guarded city where Russia developed its hydrogen bomb. A spokesman for Russia's Atomic Energy Ministry refused to comment in detail about the sale but did acknowledge that Russia had been buying U.S. supercomputers at times, and stated that Moscow was within the law in its acquisition. Commerce Department under secretary for export administration, William Reinsch, testified before a House National Security subcommittee that the global explosion of computer technology makes it difficult to control sensitive exports. Although the U.S. has placed many restrictions on the sale and shipment of supercomputers to non-allies, one source noted that the IBM sale in question grew out of a diplomatic mis- understanding that occurred during negotiations in September, 1996 related to a total ban on nuclear testing, which was signed by the Russians. Russian officials claim they were enticed into the agreement on the basis of "hints" they could buy supercomputers sometime in the future. U.S. spokesmen, however, denied ever offering any such incentives. IBM regarded the sale as a legal means of entering a viable Russian market. It was noted that civilian customers in Russia are permitted to buy some high-end computers if they first obtain a license, but the sale of any computers to a nuclear weapons facility in Russia is illegal without U.S. approval.

Topic 36

/// Have CD-ROMs Become Obsolete? /// Several CD-ROM drive manufacturers, as well as many computer industry sources, agree that the CD-ROM drive as a storage device, has come to the end of its era. As manufacturers are faced with higher design costs and apparent technological barriers beyond that of the recently introduced 32x CD-ROMs, most have indicated that they will abandon the market next year in favor of producing more profitable DVD-ROM devices. The phase-out of the CD-ROM will bring with it massive price cuts, according to most analysts. And the drive makers are saying they have little choice in the matter, other than to dump their inventory and re-tool for the newer technology. One official at Mitsumi Electronics Corp. explained that the "X" race/speed race had little to do with drive performance as compared to market hype. Other industry leaders joined Mitsumi in expressions of their relief that the whole thing is about to end. According to EBN magazine, when the transition to DVD does take place, the roster of the most prominent drive manufacturers may also change radically. Many Asian drive vendors are willing to cut deep into their profit margins, just to get low-priced DVD devices to market in a hurry. DVD demand and supply, however, is still a big question because of patent claims and copyright issues that remain in stalemate. In addition to the legal battles, there is a lack of software media for the new DVD technologies, which may deter the general consumer from just going out and buying one.

Topic 37

/// Dell AC Adapters Pose Shock Hazard /// Faulty AC power adapters made for Dell Computer Corp. by Compal Electronics, Taiwan, were recalled by Dell last month when it was discovered that the adapter's connection pins have report- edly come loose inside the power cord. Although no injuries have been reported, the condition does pose a shock hazard. Digital Equipment Corp. had to recall AC adapters made by the same company in September. Compal officials refused to comment on the issue.

Topic 38

/// Sony Poses Challenge To Floppy & ZIP Markets /// The latest challenger to the floppy drive and portable backup drive markets came from the team of Sony Corp. and Fuji Electric Co. Ltd. as they announced the debut of a 3.5" device boasting a storage capacity of 200-Mbytes. The HiFD (High-Capacity Floppy Disk) products will be built by Sony, while both Sony and Fuji will produce the 3.5" media that supports the 200-Mb capacity. At 200-Mb, the new drive also out shadows the popular 100-Mb Iomega ZIP drive and the emerging LS-120 (120-Mb) 3.5" storage system produced by Imation Corp. Sony also noted that the HiFD drives employ the "flying head" technology used in modern hard drives to maintain a rotational speed of 3,600 rpm without touching the media surface. While Sony has not disclosed any price information, company officials stated that the HiFD will be competitive with the current floppy drive consumer market.

Topic 39