Gigabyte GrapeVine



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  Vol. 2, Issue 12      (c)1996 GKM Journals      Dec.   1997   
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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.

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Topical Index

Topic 01. Speech-Recognition Becoming More Commonplace Topic 02. E.Com Revives Windows 3.1 To Command Handhelds Topic 03. GTSI Will Open Windows For The Army Topic 04. IBM Introduces Super-Size Notebook Hard Drives Topic 05. Another Bigfoot Sighting... 12-Gigabytes of Big Topic 06. Acer Will Focus On U.S. Market Topic 07. SystemSoft Offers Fix-All Software Solution Topic 08. Helius Will Help Spend Your Tax Dollars Topic 09. 3Com & Diamond Say 2 Lines Are Faster Than 1 Topic 10. Mega-merger Between MCI & WorldCom Draws Scrutiny Topic 11. Future Of Alpha Chip Is Uncertain Topic 12. New Flash Chip From SanDisk Boosts Memory Topic 13. New Rockwell Technology Promises Faster Modems Topic 14. Diamond Moves To 128-bit Video Architecture Topic 15. Another Look At Software Modems Topic 16. IBM Will Market Java-based Operating System Topic 17. Diffusion Inc. Pushes Harder For Push Technology Topic 18. Apple To Join The Online Marketplace Topic 19. New HP LaserJet 4000 Printer Offers Speed Topic 20. Two More Bugs Found In MS-IE 4.0 Topic 21. CRI Card Can Save Money And Board Space Topic 22. Intel Will Slash Pentium II Prices Topic 23. Microsoft Feels Heat From DOJ Topic 24. Who Will Rule The Domain Name Game? Topic 25. 47 Gigabyte Drive Introduced By Seagate Topic 26. Samsung Enters The Motherboard Business Topic 27. Sun Spills The Beans On New Web Tool Topic 28. Release Of CorelDraw 8 Slated For December Topic 29. Intel Announces Digital Camera Kit Topic 30. Intel's Legal Woes Continue Topic 31. SanDisk Signs Retail Chains For CompactFlash Topic 32. Intel Chip Powers S-Mos Credit-Card Computer Topic 33. Delay Of Windows NT 5.0 Causes Worries Topic 34. Canon To Advance In Smart Peripherals Topic 35. E-Commerce Community Upset Over Standards Change Topic 36. USB Will Make A Better Connection In 1998 Topic 37. New Double DIMM Capacity Memory From Viking Topic 38.

/// December Bottom Line /// WARMEST HOLIDAY WISHES
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Topic 1

/// Speech-Recognition Becoming More Commonplace /// Now that hardware technology has caught up with the software technology that speech-recognition applications are based on, we can look for these useful programs to make their way into the mainstream market. An analyst at the Gartner Group predicted that by the year 2001, 30 percent of the work force will be using some form of speech- recognition technology as a part of their daily work routine. Bell South is now using the Speech Works 3.0 toolkit from Applied Language technologies to generate a telephony-based voice-recognition system for its Bell South Yellow Pages. Bell South officials say that the system saves them money because fewer staff members are required to handle incoming requests. Two popular speech-recognition choices for the consumer and business user have emerged into the market. One called "Via- Voice," from IBM and "Naturally Speaking," produced by Dragon Systems. IBM's ViaVoice is available for $99, and offers the user up to 140 words per minute of continuous-speech processing. Dragon's Naturally Speaking sells for $299, and features a vocabulary of over 230,000 words. Both applications support Microsoft Word 7 and will run on Windows NT and Windows 95. ViaVoice had the distinction of being the first such application to be integrated into a complete software suite when Lotus Development Corp. selected to bundle it within its Lotus Smart- Suite 7. Although Microsoft Corp.'s individual NetMeeting and Agent applications offer speech-recognition, the company may not include the technology in its Office Suite products for another three to five years. According to one industry source, however, Bill Gates does have plans to include it in one of his forthcoming operating systems.

Topic 02

/// E.Com Revives Windows 3.1 To Command Handhelds /// Microsoft's newest Windows CE operating system appeared to be the number one choice for most manufacturers of handheld and palmtop computing devices, but a company called E.Com Inter- national has resurrected the antiquated Windows 3.1 operating system to command its wireless handheld device. A Computer Reseller News editor noted last month that E.Com wanted to make sure its "Discovery" handheld would fit in with and perform in the league with competing CE devices priced in the $500 to $1,000 range, and pen-based units priced between $3,000 and $6,000. E.Com has introduced its handheld lineup with prices ranging from $1,400 to $2,000. The units can send and receive E-mail, access files, update files, and make wireless connections to a network server. A special processor manufactured by Advanced Micro Designs (AMD) called ELAN SC-300 sparks the Discovery units, which are powered by a Nickel-Metal Hydride battery that can supply power for 25 hours or more. The DataTAC wireless PC card modem used by E.Com is also designed to con- serve battery life. An owner of the Discovery can take advantage of pen-based capabilities by adding "PenRight" software in addition to the Windows operating system.

Topic 03

/// GTSI Will Open Windows For The Army /// A Chantilly, Virginia-based integrator has been awarded a $469 million contract to provide upgrade and support services for the U.S. Army. Government Technology Services Inc. picked up the sizable con- tract to migrate the U.S. Army's Standard Management Systems from its present Unix-based configuration to a Microsoft Windows NT environment. The STAMIS (Standard Army Management In- formation Systems) Computer Contract II entails the Army's management and support systems for its tactical centers around the world. The Army has a five year plan to complete the software and hard- ware migration, as reported by one Chantilly, VA source. Under the contract, GTSI will provide the desktop PCs, notebooks, printers, server computers, and software. In addition, GTSI will provide the installation, maintenance, warranty, and consulting services for the project.

Topic 04

/// IBM Introduces Super-Size Notebook Hard Drives /// IBM Corp. recently introduced a super-high-capacity hard drive geared for the notebook computer market. The new IBM Travelstar 8GS product has broken all records for storage capacity for a notebook PC. Its 8.1-Gigabyte device is only about the size of an audio cassette tape with a thickness of 17-mm, but it can store five times the data of an ordinary notebook PC drive. Special MRX (Magnetoresistive Extended) heads generate stronger signals than the heads used in earlier technology, which is one of IBM's secrets to the higher-than-average performance of the 8GS hard drive. The 8GS is slated to ship this month in limited volume, with full production to begin in February, 1998.

Topic 05

/// Another Bigfoot Sighting /// It's big and its fast, but it's not very hairy. It' the new Bigfoot series of hard drives from Quantum Corp. The noted hard drive manufacturer claims it has raised the standard on the 5.25-inch drive category with the introduction of its Bigfoot TX line. Production sizes run from 4-Gigabytes to 12-Gb, and carry price tags ranging from $209 to $399. Magnetoresistive heads (MR) are used in the TX product line to read and write to the disks, which spin at 4,000 rpm. According to a Quantum source, it takes as many as three disks stacked within the unit to achieve the 12-Gb capacity of its high- end storage drive.

Topic 06

/// Acer Will Focus On U.S. Market /// Since Max Wu was installed as president and CEO of Acer America Corp. and Tom Miller was appointed to take the helm of the company's Commercial Systems Division, those two gentlemen and Acer chairman Stan Shih will share plans to focus more attention on the U.S. computer market. After its acquisition of the notebook PC division of Texas Instruments, Acer became recognized as the fourth-largest note- book PC vendor. And according to Computer Reseller News (CRN), that amounts to a 7.2 percent stake of the market in 1997. In addition to the jump in notebook sales, the TI acquisition opened doors for Acer that allowed an increase in desktop sales within established TI accounts.

Topic 07

/// SystemSoft Offers Fix-All Software Solution /// They call it System Wizard Mobil Client, and describe it as problem-resolution software. SystemSoft Corp., recently introduced its newest version of its System Wizard packages, but this latest release is designed for notebook PC makers and support providers. The company's first problem-resolution suite announced earlier this year, enabled desktop manufacturers to take advantage of its unique features. Both versions of the software can automatically identify and repair most of the common problems associated with a PC. Now, the newest package addresses some additional problems known to plague mobil computers. Through its "Knowledge-Base" architecture, System Wizard Mobil Client maintains a database that was gathered and compiled after SystemSoft held discussions with business partners such as Intel Corp., IBM Corp., and Microsoft Corp. The database contains a catalog of problems that might be detected and a set of software solutions to correct them. Problems related to Plug and Play, docking stations, PC Card slots, networking and power management are among those addressed by the Mobil Client package. A graphical user interface allows users to just point and click on a picture representing a possible problem area of the PC or one of its peripheral components. Once the user selects and clicks on the related graphic of the affected area, the software takes over to solve the problem. If the software cannot resolve the problem, it will then connect the PC to a designated server that provides updated information. If all that fails to cure the problem, then the user is advised to contact a call center.

Topic 08

/// Helius Will Help Spend Your Tax Dollars /// A company called Helius Inc. has been shoring up its satellite Internet software to support Unix and Windows NT servers as it prepares to vie for its share of K12 school Internet projects. Version 2.0 of the Helius DirecPC Network Edition will support Unix, Netware, and Windows NT Web servers, and will give them the capability to be connected to a satellite dish antenna. With the addition of an Internet Service Provider (ISP), the dish can receive [incoming] Internet transmissions, but all outgoing transmissions must be handled through a standard tele- phone line. Although the satellite transmissions are fast-- 400 Kbits per second, the cost is relatively high when compared to traditional land lines. The satellite dish antenna system costs about $1,600 by itself, then you still have to pay up to $128 per month for unlimited service. Add to that, the monthly fee paid to the ISP, and it all starts to add up. Helius officials say there will still be a need for their system for one third of the 130,000 K12 schools scheduled to be linked to the Internet as prescribed by the Clinton administration. While many of those schools [are] situated where high-speed lines such as T1 or ISDN services are still too expensive, and the traditional phone lines are too noisy to support 56-Kbit/s modem transmissions, many would argue that the federal subsidy money required for the solution might be better invested in other causes.

Topic 09

/// 3Com And Diamond Say Two Lines Are Faster Than One /// Modem makers such as 3Com and Diamond Multimedia Systems latest solution to the Internet bandwidth bottleneck is based on the principle that two is better than one. And when dealing with digital communications, two is also faster than one. 3Com and Diamond both have announced new products that can pump more data through the Internet in less time by using two phone lines instead of just one. The engineers say that the new modems will provide a means to attain inexpensive high-speed Internet access until other tech- nology breakthroughs develop. Tests indicate that the new devices offer access speeds up to 112-Kbits/second-- double the speed of the current 56-Kbps modems on the market. But when it come to price and target markets, 3Com and Diamond appear to be going in separate directions. 3Com's unit is priced at $745, and is intended for the small business or home where multiple computers and networking may be involved. Diamond has a much lower-priced solution, which may hit the stores at less than $200, but will be geared expressly for the consumer market. Named SupraSonic II, the new unit is expected to be available early next year. A Diamond official also noted that his company's current product line will be upgradable to the two line technology. A recent survey shows that 25 percent of U.S. homes already have two-line telephone service, and since Diamond has foreseen the problem of tying up those lines with PC Internet use, the company has included a solution in its new modem design that will momentarily divert data traffic to receive incoming phone calls. The dual-line approach is less expensive than other high-speed alternatives such as ISDN (Integrated Services Digital Network) phone lines. An ISDN hook-up can cost up to $300 to install, and requires a monthly fee of $50. A household that does not already have two-line phone service will have to invest in a second line and a second account with an Internet service provider (ISP). It is important to note that a dual-modem works only when connected to an ISP that uses switches managed by Ascend Communications. Of the major ISPs, about 85 percent use the Ascend switching platform, as stated by one industry source. 3Com's new dual-analog device is not actually a modem, but a router. The company explains that a router operates like a traffic cop for data. It enables multiple computers to connect to the Internet via the same two phone lines, which could result in cost savings for small businesses by eliminating the need to pay for more than one Internet account or buy additional modems for each computer. However, according to 3Com officials, the dual-analog unit is best suited for companies whose employees are not real heavy Internet users because of the requirement of sharing the same data pipeline. The company noted that simultaneous downloading of large files by a number of employees could create a quite a bottleneck.

Topic 10

/// Mega-merger Between MCI & WorldCom Draws Scrutiny /// A new gargantuan communications company was formed last month when WorldCom Inc. beat out all other bids to complete a merger deal with MCI Communications Corp. WorldCom topped the $24 billion merger offer from British Telecommunications Plc. and the $28 billion agreement previously tendered by GTE Corp. , as disclosed by MCI Chairman, Bert Roberts during a news conference in New York. British Telcom will still receive $7 billion out of the merger to cover its 20 percent stake in MCI. According to investment analysts, the British company will make a $2.25 billion profit on its remaining MCI stock. An additional $465 million will be awarded to BT because of the broken contract by MCI when it promised to merge with BT. As part of the deal, WorldCom must also assume $5 billion in MCI debt. A spokesman from British Telcom was quoted in a press release as stating he is quite pleased with the outcome of BT's investment in MCI. According to the record keepers, last month's merger surpasses anything in U.S. market history, even the $25.6 billion deal between Bell Atlantic Corp. and Nynex Corp. that was finalized last August. Most value-added resellers (VARs) polled by Computer Reseller News magazine said they were satisfied with the combined MCI/ WorldCom enterprise, and that it should be beneficial to them in having one source to provide a full range of data and tele- communications services. They noted WorldCom's expertise in Internet communications should be a plus for the consolidation. Because of the financial scope of the merger, the U.S. Dept. of Justice and FCC announced that they will have to conduct an investigation before giving their approval.

Topic 11

/// Future Of Alpha Chip Is Uncertain /// When Digital Equipment Corp. (DEC) made the decision to sell its micro-chip business to Intel Corp. in October, the intense patent dispute between the two companies may have been settled, but other questions have been raised about the future of DEC's Alpha chip microprocessor line. Some industry observers say that the powerful Alpha chip and its companion, the StrongARM embedded processor may fall by the wayside in light of competing Intel chips. One additional piece of the puzzle to be fit into the scenario is the recent announcement by Sansung Semiconductor Inc., South Korea, that it has run samples of a next-generation Alpha chip that turns 700- MHz clock speed. The company said that it has scheduled volume production for early next year. Intel's blackboard calls for its version of Alpha to go to market by the second half of 1998. Although the performance of the Alpha chip is significant, Intel Corp.'s "Merced" technology is predicted to score big in the corporate workstation and server markets. Under the terms of the agreement, DEC will retain the ownership of the Alpha trade name, but will sell its entire chip business to Intel-- that includes the silicon wafer fabrication plant located at Hudson, Mass. where Alpha chips are now manufactured. To keep its part of the bargain, Intel agreed to manufacture the Alpha chips for an unspecified period of time.

Topic 12

/// New Flash Chip From SanDisk Boosts Memory /// SanDisk Corp. has again taken the lead in the flash-memory field with the introduction of its 2nd-generation MLC (multi-level cell) chip. Introduced as an 80-Mbit device, the chip was co-developed with NEC Corp. and Matsushita Electronics Corp., and will nearly triple the memory capacity of current FlashDisk cards by hiking storage capacity up to 60-Mbytes. Production is scheduled for next year, and company officials indicate the new chips will be used in consumer goods such as PDA (Personal Digital Assistants) and digital cameras. The chips will operate on either 3.3 volts or 5 volts, and will be manufactured next year by NEC and Matsushita.

Topic 13

/// New Rockwell Technology Promises Faster Modems /// Researchers at Rockwell Semiconductor Systems are working on a new modem technology that could permit downstream data rates of up to 1-Megabit per second. But the best news is that the high speed rate comes at a bargain price. Rockwell sources have hinted that the CDSL (Consumer Digital Subscriber Line) technology will be packaged, priced, and sold much as existing 56-Kbps modems. More good news-- the new devices will operate on standard telephone lines. Some observers are assuming that Rockwell has timed the recent announcement to draw some attention away from the pending law- suit that was brought against Rockwell by Brent Townshend, a Stanford University researcher. Townshend is claiming Rockwell participated in misappropriation of trade secrets, breach of contract, and unfair competition, stemming from a 1995 meeting between Townshend and Rockwell. Mr. Townshend claims he was the developer of the pulse-code modulation modem technology later used to usher in the K56flex modem chip-set used by Rockwell. One market analyst noted that if Rockwell loses the suit, it could be forced to pay sizable license fees for intellectual property rights.

Topic 14

/// Diamond Moves To 128-bit Video Architecture /// Diamond Multimedia Systems Inc. has produced a true 128-bit media accelerator board that offers 2-D and 3-D color graphics, and backs up its performance with 4-Mbytes of 100-MHz SGRAM (synchronous graphics dynamic RAM) video memory. Called the "Viper," the new video board is one of the first to offer a true 128-bit graphics technology with full multimedia features including MPEG (Motion Picture Experts Group) movie playback and TV output. DVD (Digital Video Disk) support is also built-in, and picture resolutions of up to 1,600x1,200 pixels and color depths up to 32-bit true-color can be achieved. The Vipers are now shipping, and carry a suggested price of $199.

Topic 15

/// Another Look At Software Modems /// PCtel Inc. is offering what it claims to be a hassle-free alternative to 56-Kbits/second modem technology. The company's software-based technology is called HSP (Host Signal Processing), and provides speeds from 14.4 to 56-Kbps through a combination of software and firmware in the form of ASIC (application-specific integrated circuit) chips. According to company executives, the HSP device eliminates the need to constantly swap hardware or modem cards to keep up-to- date. And the cost to the PC manufacturer to install the HSP is from 10 to 40 percent less than existing hardware solutions. A software modem uses the power of the on-board processor of the PC instead of using a separate digital signal processor or dedicated modem processor and data pump. The HSP device integrates all this into the software and upgradable software drivers. Another plus for the HSP modem is its low power consumption, which makes it ideal for portable computers. With a battery drain of just 150 milliwatts as compared to the 750 milliwatts of current required by hardware-based modems, the advantage of the HSP technology becomes obvious. AST, IBM, CTX, NEC, and Acer are among the PC makers that have contracted to use the HSP modem from PCtel, which accounts for a good portion of the two million software modems shipped by the company to date. PCtel stated that their HSP modem will support Windows CE, 95, NT 4.0, and DOS. Its wholesale price to PC equipment makers is set at $20 each in lots of 10,000.

Topic 16

/// IBM Will Market Java-based Operating System /// Next year, IBM Corp. plans to market a new PC operating system based on the increasingly popular Java language. The new O/S and its management tools are designed to further diminish the already fine line between the PC and the Network Computer (NC), according to IBM sources. The Java-based O/S will run on a home PC or a thin client server in an office, and is affirmed to be compatible with most major software applications, as stated IBM. One source indicated that the new O/S will mainly be used to run Lotus eSuite appletts and similar appletts designed by resellers to function in a pure Java environment. It appears that IBM's new strategy will be to make known its intent to de-segregate the classes between the PC and the NC when it comes to Java. One good indication of this was its recent name change from The IBM PC Co. to The IBM Personal Systems Group.

Topic 17

/// Diffusion Inc. Pushes Harder For Push Technology /// In its quest to help Internet providers deliver more information to more customers who demand it, Diffusion Inc. has introduced Diffusion Server 2.0. A provider running Diffusion 2.0 on his Web site can allow its visitors to subscribe to a host of information, and receive it exactly when and where they want it, and by which media. People browsing a Diffusion-based site can also be notified of current and future updates in various ways including E-mail, Web posting, Web casting, pager, fax, voice mail, or the old fashioned postal system (snail mail). The user has the option to have his specified information delivered by fax or request that an update notification goes to his/her pager. Diffusion officials think they have a selling point for their push technology in that it offers Web masters a way to deliver content to users who do not frequently go online. But the technology comes at a price, and that price of $75,000 would not appeal to the small-time operator. For those who can afford it, Netscape has been designated as a reseller of Diffusion 2.0, and will handle the transactions through its worldwide sales force.

Topic 18

/// Apple To Join The Online Marketplace /// Apple Computer Inc. announced last month that it will launch an online sales system to sell low-end computer systems. The Web site will be running under Apple's own WebObjects online development tools, which was a product from the acquisition of Next Inc. One industry observer noted that other PC vendors including Dell Computer Corp., are running WebObjects as a base for their online sales. Apple is also ready to launch its new "G3" line of desktop PC systems sparked by the PowerPC 750 processor manufactured by IBM and Motorola. The new desktops will be priced from $1,999 to $2,999, and will be equipped with a 24x CD-ROM drive, 32-Mb of memory, and 2-Mb of video RAM. For the high-end notebook customer, Apple will offer a new Apple PowerBook G3/250 that will be running a 250-MHz processor and use a 12.1-inch TFT (thin-film transistor) active-matrix color display. The G3/250's high performance will demand a hefty price of $5,699, according to one market source.

Topic 19

/// New HP LaserJet 4000 Printer Offers Speed /// Last month, Hewlett-Packard Co. announced the debut of its LaserJet 4000 printer, which can turn out printed pages at the rate of 17-ppm. As the replacement for the classic LaserJet 5 series, the 4000 also offers the high-end of resolution quality at 1,200 dots- per-inch for an asking price of $1,100. One secret in the new recipe for speed comes from the 100-MHz on-board processor for the 4000, compared to the 33-MHz chip used in the LaserJet 5. In addition to the high-rate of print, HP's Instant-On Fuser system allows the printer to operate immediately on demand by the user. The 4000 is shipping from HP in two basic versions-- one as a network printer and the other as non-network.

Topic 20

/// Two More Bugs Found In MS-IE 4.0 /// When it rains, it pours. That old adage would most certainly apply to Microsoft Corp. in light of its legal battles and a rash of flaws recently reported in several of its major soft- ware products. Now it appears that the software giant has had to admit to yet two more bugs found in its Internet Explorer 4.0 browser. A news report out of Redmond, Washington last month disclosed that a group of German researchers found that a villainous Web master could obtain the context of plain text, HTML, or image files from an unwary users hard drive. The report stated that until a fix is downloaded, concerned IE 4.0 users can invoke the "Security Zones" feature to prevent the intrusion. Earlier last month, Microsoft had to account for the "Buffer Overrun" problem, which affects only the Windows 95 Internet Explorer 4.0. It does not affect Internet Explorer 4.0 for Windows NT, Windows 3.1, or UNIX, any earlier version of Inter- net Explorer, or the preview version of Internet Explorer 4.0 for Macintosh, according to Microsoft officials. This bug [can] cause Internet Explorer 4.0 to crash when a malicious Web site contains a certain kind of URL-- supposedly one that begins with "res://", and contains more characters than the browser supports. The extra characters could form a malicious code that could then run on your PC. There have been no reports of any victims, or malicious Web sites initiating the problem. A patch that will fix both bugs can be downloaded from the MS Web site. The odds of becoming victim to the Freiburg bug is somewhat slim, however. The malicious Web site would have to be designed specifically to obtain certain files, according to the news report. The targeted files would have to be identified exactly by file name, extension, and directory location. And even if those files were targeted, they cannot be destroyed or altered by the malicious Web site, and the data cannot be stolen from files other than .htm, .txt, or some graphics files. Your .exe, .sys, .com, and other system files should be safe. The procedure for invoking the "Security Zones" feature is somewhat lengthily to cover in this short text, and I would suggest that an IE 4.0 user might check the help files or contact Microsoft directly to make sure the correct method of installation is applied.

Topic 21

/// CRI Card Can Save Money And Board Space /// Chromatic Research Inc. is offering some cost relief to value- added resellers who may also want to save space in their PC boxes. CRI has introduced a multimedia card based on its Mpact media processor that integrates standard PC functions onto a single board. Graphics acceleration, audio, video, and modem functions are combined to save the integrator or reseller both money and space. The vendor can install $1,000 worth of multimedia features for as little as $399 or less by using the Mpact card, which takes up a single PCI slot on the motherboard. With that task in hand, the vendor or end user can use the remaining slots for other hardware as needed. The multimedia card will support Microsoft Windows 95 and DirectX standards, but does require a PC running a Pentium 166-MHz or faster processor.

Topic 22

/// Intel Will Slash Pentium II Prices /// As Pentium II processor speeds climb to the 450-MHz mark, Intel may completely blow away the market next year by slashing prices on the high-end chip and matching chip-sets by as much as 50 percent. One online source stated that Intel wants value-added resellers to be able to offer Pentium II technology for both high-end and entry-level computer applications. A new cartridge design for the Pentium II module called Slot 2 may help bring this about. The Slot 2 design is better suited for multiprocessing tasks because it permits the Level 2 cache to run at the same speed as the processor chip, according to Intel. The previously announced Slot 1 architecture will be assigned mainly to desk- tops and larger servers running cache at half the speed of the processor. Slot 2 also out ranks Slot 1 in size, speed, and number of processors supported. Slot 1 only supports two processors, while Slot 2 will support up to four. Power and speed comes at a price, however, which currently demands $4,489 for a Slot 2 Pentium II processor running at 400- MHz, and boasting 2-Mb of Level 2 cache. But projections for May, 1998 show that same Slot 2 device selling for just $851. Intel sources also promise extensive price cuts on the earlier Pentium II processors by reducing the price of the 233-MHz version from $400 to $200 in wholesale quantities by May. By the third quarter of next year, Intel expects to lower the wholesale price of one version the 266-MHz Pentium II down to $200 by re-tooling the module and eliminating the internal Level 2 cache. From that point in time, Intel can target even the low-end $1,000 PC market with its Pentium II architecture.

Topic 23

/// Microsoft Feels Heat From DOJ /// As the antitrust investigation of Microsoft Corp. continues, the U.S. Dept. of Justice introduced documents on November 20 that contend to show Microsoft violated terms of the 1995 consent decree. Responding to Microsoft's request to throw out the antitrust suit, DOJ officials gave the U.S. District Court papers that allegedly disprove Microsoft's claims that Windows 95 would include Web browser technology. The DOJ introduced E-mail messages along with other documents that divulged that top Microsoft officials discussed how the company's browser development plans were [separate] from its Windows 95 operating system. In support of their case, DOJ officials noted that the internal communications between Microsoft executives clearly point out that Internet Explorer was [not] developed to be an integral part of Windows 95, but was independently developed from other existing applications such as Mosaic, which was licensed in January of 1995. Uniform with its plan, Microsoft did not distribute Internet Explorer with the initial version of Windows 95 sold to the general consumer, as pointed out by one observer. DOJ officials clearly demonstrated their disdain of Microsoft's efforts to leverage Internet Explorer into the browser market by stating that they view the company as saying they can bundle anything they want-- like selling Windows 95 with a ham sand- witch and calling it an "integrated" product. Microsoft failed to see the humor in the DOJ's remarks, and continued to maintain that it is in full compliance with the 1995 consent decree, and that it is only a case of interpret- ation and application of document language. The DOJ also took exception to the non-disclosure agreement portion of Microsoft's contracts with equipment manufacturers, where Internet Explorer was mandated to be installed. The officials said, they could rule that section null and void for court purposes. The next phase of the proceedings will be a court hearing before U.S. District Judge Thomas P. Jackson on Dec. 5.

Topic 24

/// Who Will Rule The Domain Name Game? /// A decision was scheduled last month by the U.S. Department of Commerce to help sort out the mess over who will ride herd on the Internet domain naming game. As of March 31, 1998, the NSF (National Science Foundation) will have reached the end of its five-year contract with Network Solutions Inc. (NSI) as it backs away from the task of regulat- ing the Internet. According to news sources, the Commerce Dept. will have to include some type of road map for Internet government beyond the March 1998 deadline. The situation has brought some concern to many value-added resellers (VARs) over the outcome because of a pending power struggle, which could cripple Internet operations. There is a conglomeration of groups made up from factions of the computer industry, scientific organizations, and international cliques that are already maneuvering to impose their strategies as to how the Internet should be governed-- not to mention just about every branch of the U.S. government. In the fight for control of the Internet, first you have the 177 assorted international registrars and companies like NSI staking their claim. Then there is a group of small companies that are asserting that their investments in the Internet over the past two years should account for something. The third group to be dealt with is the "old guard" from the academic and research organizations that lay claim to the pioneering days of the Internet. A new coalition has also been formed, which is made up of NSI and other corporations called the "Private Sector Coalition." The PSC hopes that its plans for the transition and government of the Internet will prevail so that a government-imposed solution can be avoided. Some analysts are looking for the Commerce Dept. to extend the NSI contract to authorize domain names until the latter part of 1998 to stall the impending power-struggle. Domain names are the extensions that identify categories of Web sites such as .org, .edu, .com, and .net. About 125,000 domain names are commissioned by NSI every month, plus an estimated 185,000 updates are issued. According to one NSI spokesman, his organization has to manage almost 1.4 million domain names in total.

Topic 25

/// 47 Gigabyte Drive Introduced By Seagate /// Named the Elite 47, a new high-end storage drive has been un- veiled by Seagate Technology Inc. that provides a capacity of 47 Gigabytes. Being aimed at the high-end storage market, the Elite 47 uses the UltraSCSI (Small Computer System Interface) to attain high data access speeds and read/write speeds up to 184-Mbits per second. The new 5,400-rpm drive should be available about now in limited quantities, and will be priced at just under $3,000. Seagate officials indicated that full production is scheduled for the first quarter of 1998.

Topic 26

/// Samsung Enters The Motherboard Business /// Samsung Semiconductor Inc. will now be able to offer its own line of computer motherboards to VARs who want to assemble Alpha-based systems. A news story out of Boston last month noted that Samsung will begin production of two versions of its motherboards early on next year. Both versions will support the Alpha 21164 processor chip, which Samsung has licensed from Digital Equipment Corp. The company plans to boost performance of the Alpha chip to reach the 700-MHz apex. A Samsung marketing executive stated that the 700-MHz CPU will be released next summer, and will be performing three-times faster than anything offered by Intel at that time. However, rumors from the Intel camp say that its 64-bit "Merced" CPU device due to ship in 1999 will hit the 900-MHz mark. The Samsung line of motherboards will support CPU speeds from 400- to 700-MHz. No price information was available at press time.

Topic 27

/// Sun Spills The Beans On New Web Tool /// It's no secret that Sun Microsystems Inc. has a dynamic Web authoring tool that lets users who have no programming back- ground create their own applications that can access and publish Internet documents. The company is introducing "Java Studio," which has some unique built-in features that makes it easy for just about anyone to create "JavaBeans" applets and applications. Any would-be Web publisher will also be happy with the relatively low price of $79 for the package. The main ingredient of Java Studio are the JavaBeans elements, which are reusable segments of pre-coded software. The Java- Beans may contain multimedia or animation components upon which to build more complex artwork. Sun officials affirmed that by just dragging a mouse from one JavaBean to another, JavaStudio will link them and automatically establish a connection to other related databases, charts and graphs, and online information through E-mail and image maps. Sun has planned a promotional package deal that will run through Feb. 28, 1998 that offers both Java Studio and the Java WorkShop application for $189.

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/// Release Of CorelDraw 8 Slated For December /// Sources within Corel Corp. said they anticipate the latest version of the CorelDraw image and graphics editing software program to be ready for distribution this month. CorelDraw 8 will allow users to publish any CorelDraw document in HTML Internet language or in Corel Barista-- Corel's own Java application. The new program runs on the Windows 95 and NT 4.0 operating systems, and is priced at $695.

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/// Intel Announces Digital Camera Kit /// Intel Corp. has entered the picture in the digital camera arena with the introduction of a still camera kit last month. The chip maker had already begun its media campaign with a radio and TV advertisement for its model 971 PC Camera Kit by Thanks- giving Day. The 971 is basically designed as a PC peripheral device rather than as a stand-alone digital camera, and appears to be another approach by Intel to market a product that supports its Multi- media Extensions (MMX) processor technology. Rather than install an ASIC (Application-specific Integrated Circuit) chip within the camera, Intel is assuming that the camera will be connected to a Pentium II-based PC through a USB (Universal Serial Bus) port. The PC's processor chip will be called upon to perform the image processing tasks. Images in the 971 are stored on a miniature flash card, which can store up to 64-Mbytes of image data. As a further cost reduction measure, the Intel camera does not include the usual LCD screen to allow the user to view pictures as soon as they are snapped. The peripheral digital camera concept seems to be catching on as other electronics manufacturers such as Aztech Systems Inc., Samsung Aerospace Industries Ltd., and Lite-On Technology Corp. have also announced plans to produce a PC camera of similar design. Intel officials are hoping that the 971 design will lead to a consumer item priced in the $200 to $300 range.

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/// Intel's Legal Woes Continue /// Intel Corp. continued to keep its lawyers busy last month as the semiconductor giant had to confront the angry response from Silicon Storage Technology Inc. regarding Intel's patent claims. SST has now threatened Intel with a countersuit that specifies unfair trade practices. In question are SST's use of Intel- patented cell flash-memory circuits and memory cell structures. Bing Yeh, president and CEO of Silicon Storage Technology (SST), has denied the charges, and said that his company will file a countersuit and forward a report to the U.S. Federal Trade Commission. A report issued from Silicon Valley, California noted that the FTC is presently conducting an investigation of Intel's business practices. The other legal action Intel must face was initiated by Inter- graph Corp., Huntsville, Alabama. In this suit, Intel has been charged with "anticompetitive" behavior related to Windows NT- based hardware it has produced. Intergraph has alleged that Intel engaged in a campaign of coercion and oppression against them when Intergraph refused to surrender its patent rights to related technology.

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/// SanDisk Signs With Retail Chains For CompactFlash /// An embedded version of its ATA (Advanced Technology Attachment) memory card has been developed by SanDisk Corp. for both the retail and OEM (original equipment manufacturer) markets. The SanDisk "CompactFlash" memory cards will soon find their way into some 2,000 retail stores owned by Best Buy, Circuit City, Office Depot, and others, as reported by Electronic Buyers News (EBN) last month. For the OEM business, the CompactFlash data-storage cards have found their way into approximately 110 products. Digital cameras such as the Kodak DC210 and Epson Photo PC 600 are using the SanDisk devices, as well as handheld computers marketed by Casio Computer Co. and Hewlett-Packard. SanDisk expects to sell one million or more of the storage cards for this year, which range in capacity from 2- to 10- Megabytes of memory. Company sources say that the storage capacity of the cards can be doubled by employing a proprietary version of "Stacker" compression software. EBN noted that the OEM volume price of a 2-Mb CompactFlash card is $60.

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/// Intel Chip Powers S-Mos Credit-Card Computer /// The Cardio486HB credit-card-size computer produced by S-Mos Systems Inc. is powered by the Intel "Hummingbird" 80486/486SXSF processor. Termed as an "ultralow-powered" device, the Hummingbird consumes just 1.2 watts of power. In concert with the Intel chip are the subsystem components, which are comprised of the input/output controller, floppy/hard drive interface, and a video controller that supports color resolution of 640x480-- up to 256 colors. Depending on memory and other system requirements, sample units of the 486HB computers are going for about $300.

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/// Delay Of Windows NT 5.0 Causes Worries For Industry /// Value-added resellers, PC manufacturers, and other industry observers are showing more than a little concern over the most recent time-table for the release of Microsoft Windows NT 5.0. In addition to the continual delays, which now have moved the release date of the gigantic operating system back to the 3rd or 4th quarter of 1998, higher prices are also likely. Beta versions of NT 5.0 were released for testing as early as last September. Back then, 5.0 was optimistically expected to ship to resellers by the 1st half of 1998, but that has all changed. A second beta of NT 5.0 will be released within the first half of next year, but not the marketable version, according to company sources. It was reported two months ago that Microsoft was "betting the company" on NT 5.0, which is described as the "most comprehensive" operating system ever produced. And that translates to big! One Microsoft official disclosed that the enormous product contains 19.2 million lines of code. As Microsoft maneuvers itself into a multi-market position, the fact that Windows 98 will precede NT 5.0 creates another dilemma for the software giant. If Microsoft goes into an over- aggressive ad campaign for Windows 98, it could confuse some of the already restless business customers wanting to migrate to a newer technology. Equipment builders were not happy either upon learning that they will be paying from 15 to 20 percent more in license fees for NT 5.0 as compared to 4.0, which already costs some $70 to $90 per license for workstation computers. Many complimentary programs designed for NT 5.0 compatability such as "BackOffice" and "SQL Server" are so closely tied to NT 5.0 that sales of those products will be dismal if Microsoft does not soon get its monster operating system off the ground, as interpreted by some industry sources.

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/// Canon To Advance In Smart Peripherals /// Canon USA has proclaimed a new strategy for information manage- ment to cover just about any content, form, or location. A news story out of New York last month stated that Canon's "ImageAnywhere" solution addresses its existing and emerging technologies in fax, copiers, printers, and scanners to the extent of making them into "smart" peripherals. The new Canon blueprint will allow users to transfer office or computer files to/from a copier, printer, or scanner from any remote location-- and enable them to access the Internet and E-mail messages. The smart peripheral can also make a phone call to alert the receiving party that a document was sent, or to acknowledge that one was received. 2-way communication will be accomplished through the Simple Network Management Protocol (SNMP), and the company expects the first ImageAnywhere products to be available within the first half of 1998. Canon also announced its "WebSpot" printer management utility that can be accessed by an Internet browser.

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/// E-Commerce Community Upset Over Standards Change /// The electronic-commerce and security communities are upset now that IBM Corp. and VeriFone Inc. revealed plans last month to add their own modifications to the internationally accepted SET (Secure Electronic Transactions) credit-card specifications. The two companies contended that the SET security standard did not provide cross-compatability to vendors, so they took it upon themselves to offer their own specifications by mid-1998. A popular opinion among vendors is that the two companies were unable to develop SET-compliant products due to internal difficulties, and decided to draw up a new set of rules for SET to cover their collective butts. The vendors want to know why the entire industry should have to comply with the IBM/VeriFone specifications as opposed to a neutral specification that has already received international approval. The initial SET specifications were formulated by a coalition made up of an assortment of corporations who have vested inter- ests in E-commerce, which included Visa International, Master- Card International, IBM Corp., Microsoft Corp., and Netscape Communications Corp. Officials from Microsoft and Netscape stated that they support the new security endeavor by IBM and VeriFone.

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/// USB Will Make A Better Connection In 1998 /// The Universal Serial Bus (USB) connectivity standard will begin to gain momentum this holiday season and throughout next year as more vendors offer products for the one-size-fits-all port connection. Among those bringing USB wares to market are Northstar Systems Inc. and Xirlink Inc. Northstar has introduced a line of USB connectivity products that allow resellers to connect USB and non-USB devices together. Of those products, the USB "HubStar" 4-port hub enables resellers and users to connect multiple devices to a single USB port. Xirlink's foothold into the USB market comes in the form of a USB Video Phone, which includes a digital video camera, video- conferencing software, and a USB adapter cable. The $149 unit supports real-time video and voice communications when linked to a PC through a USB port.

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/// New Double DIMM Capacity Memory From Viking /// The 128-Megabyte capacity barrier for DIMM (Dual Inline Memory Module) technology has been broken by Viking Components Inc. by pushing the envelope all the way to 256-Mbytes. Viking's T3 technology virtually doubles the amount of expand- able RAM available for many of the PC systems already in use, as well as making new systems even more expandable, according to CRN magazine. Existing 3-slot motherboards max out at 384-Mbytes of memory when fully populated, and current 4-slot boards allow up to 512- Mbytes. By employing the T3 technology, a 3-slot system can be boosted up to 768-Mbytes, while the 4-slot units can hold as much as 1-Gigabyte of RAM. The T3 DIMMs are configured as a 168-pin device, which will be priced in the $2,000 range. The first T3s were scheduled for shipping the last week of November.

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